U.S. Energy Department Announces $150 Million Contractor Training Grants to Drive Clean Energy Workforce Development

The U.S. Energy Department on July 17 announced $150 million for states through a grant program to train residential energy efficiency and electrification contractors. The initiative,  State-Based Home Energy Efficiency Contractor Training Grants Program, is funded by the 2022 Inflation Reduction Act, or IRA. The purpose of the initiative is to train a new generation of residential energy contractors, reduce training costs, and certify efficiency and electrification contractors. By supporting workforce training programs, the program strives to make homes more energy-efficient, cut energy bills, empower existing workers, and attract new talent to advance the Biden administration’s climate agenda and promote inclusive economic growth.

The Contractor Training Grants program will have a two-fold impact, empowering states to nurture a new wave of skilled workers while also providing training opportunities for their existing workforce to meet current market demands and energy efficiency requirements. Through this program, trained workers will be equipped to carry out energy upgrades that may qualify for rebates under the Home Energy Rebates Program, thereby assisting consumers in reducing their energy expenses. With the backing of the IRA, the initiative is set to allocate $8.8 billion to state energy offices, enabling them to retrofit and electrify homes, thereby contributing to a more energy-efficient and sustainable future.

The department released the administrative and legal requirements document, guiding states, territories, and Washington D.C. in applying for formula funding for Contractor Training Grants.  The total funding amounts to $200 million, with $150 million allocated to states based on a formula and up to $40 million to be distributed through a competitive process. The department’s Office of State and Community Energy Programs is managing the administration of these initiatives, with a commitment to inclusivity and equity in the transition to a clean energy future, leaving no communities behind. These programs are in line with President Biden’s Justice40 Initiative, aiming to dedicate 40 percent of clean energy investment benefits to historically underserved and energy burdened communities.

The Department of Housing and Urban Development recently announced funding of up to $4.84 billion made available through the IRA to improve multifamily housing energy efficiency and resiliency through retrofits. The IRA provides nearly $9 billion for consumer home energy rebate programs, enabling communities to make homes more energy efficient, upgrade to electric appliances, and cut energy costs.

Applications due by Sept. 30, 2023. Applicants must submit a Community Benefit Plan supporting local engagement, workforce development, diversity, and the Justice40 Initiative.