Latest news with #RewiringAmerica
Mint
28-07-2025
- Business
- Mint
Trump's Billions in Climate Cuts Have Nonprofits Scrambling to Survive
If any nonprofit epitomizes the whiplash experienced by climate advocacy groups in the US over the past few years, it's Rewiring America. Founded in 2020 shortly before former President Joe Biden was elected, the organization focuses on shifting US homes from fossil fuel-powered appliances to electric ones like heat pumps — a prime goal of Biden's Inflation Reduction Act when it was passed in 2022. Rewiring America was poised to receive nearly $500 million from a $27 billion program created by that law. In February, the group was blocked from accessing those funds, and the Environmental Protection Agency, which administers the program, has since terminated $20 billion in grants because of 'substantial concerns' about 'program integrity, the award process, programmatic fraud, waste, and abuse, and misalignment with [the] agency's priorities.' The program is under investigation by the Federal Bureau of Investigation, according to the agency. Meanwhile, grantees have sued over frozen bank accounts. The funding uncertainty put Rewiring America in a bind, says Chief Executive Officer Ari Matusiak, 'and so we had to make the decision to operate financially as though the dollars weren't there.' It's led to Rewiring America laying off 36 staff — more than a quarter of the organization — and scaling back its work while putting more focus on regional projects. President Donald Trump's assault on clean energy regulations and funding has hit other parts of the climate NGO sector. Biden-era programs that injected billions into nonprofits have been culled, and leading philanthropists have warned they'll be unable to fill in the gap. At risk is the energy transition in the US as nonprofits struggle to provide services while also playing defense to protect remaining federal climate programs. 'We still need to act now to stop some of the worst impacts of climate change,' says Randall Kempner, founder and executive director of the Climate Philanthropy Catalyst Coalition. 'That fact has not changed. If anything, our ability to move on that has been negatively impacted by the change in the administration and its policies.' Rewiring America isn't alone: US climate-related nonprofits have cut positions and looked for other ways to cut costs in recent months as the flow of funds has dried up. Environmental group RMI has also cut jobs, laying off about 10% of its staff in May following federal funding cuts. The New Orleans-based nonprofit Deep South Center for Environmental Justice had to lay off eight staffers after losing a $13 million, five-year federal grant in February, says Beverly Wright, the group's founder and executive director. 'We hired a lot of people we had to let go,' Wright says. 'I thank God we hadn't hired even more.' Nonprofits were among the entities eligible for around $54 billion of the IRA's nearly $105 billion in climate grants and direct agency spending, according to the Inflation Reduction Act Tracker, a project run by Columbia Law School and the Environmental Defense Fund. For organizations highly dependent on public money, 'the funding became so uncertain that their survival required contracting the workforce,' says Alexander Reid, a tax policy expert and nonprofit consultant at BakerHostetler who works with many climate nonprofits. The White House didn't respond to specific questions about the effect of cuts on nonprofits. Spokesperson Taylor Rogers says the tax law Trump recently signed 'will create thousands of good, new, good-paying jobs thanks to the explosive growth' it will bring. Rewiring America is part of a coalition dubbed Power Forward Communities that applied for a grant from the $27 billion Greenhouse Gas Reduction Fund , which supports providing clean energy in low-income and disadvantaged communities. The group was awarded $2 billion last year, of which Rewiring America itself was set to receive nearly $500 million over seven years to help electrify homes at a discount. The EPA specifically singled out Power Forward Communities before it terminated $20 billion in GGRF grants, calling it 'a new nonprofit with ties to Stacey Abrams' — who previously worked with Rewiring America — and suggesting that the organization shouldn't have received funding because it was new and had limited revenue in 2023. Despite the layoffs, Rewiring America is still moving forward with the home equipment upgrade program, though at a smaller scale, a spokeswoman says. The group has also decided to focus its efforts on states and localities and invest less in federal work, which the organization sees as less winnable, says a former employee impacted by the layoffs. The five employees dedicated to state and local policy were unaffected by the layoffs, a spokesman says. Power Forward Communities is suing Citibank, accusing the bank of 'unlawful suspension of accounts,' which the group says it is legally entitled to. But the organization has had to lay off staff, and two of the coalition's five members — Habitat for Humanity International and United Way Worldwide — have left. Climate United Fund, another GGRF recipient that also had its money frozen, is suing Citibank alongside Power Forward Communities. The group has lost about 10 of 35 staffers since February due to layoffs, departures and reassignments, says Chief Executive Officer Beth Bafford. Coalition members CPC Climate Capital and Self-Help Climate Capital have also had to fire and reassign staff, Bafford says. When the Kresge Foundation surveyed grantees earlier this year about the impact of federal grant cancellations, as many as half of groups receiving climate-related grants reported that they were either already affected or at risk of being affected. Many were benefiting from IRA funds, and shortfalls ranged from 20% to up to 80% of their budgets. RMI, which now has fewer than 700 staffers, had five federal agreements canceled, according to a spokesperson. Those represented a relatively small portion of the group's overall revenue — around $7.5 million compared to $170 million in revenue and support listed in its most recent annual report — but the philanthropic organizations that provide most of its funding are also facing uncertainty, the spokesperson says. Smaller NGOs working at the local or regional level are also reeling — and often have fewer resources to cushion the blow. The Deep South Center for Environmental Justice was expecting funding to help dramatically scale up the group's work with community-based organizations focused on climate resilience issues like flash flooding, overflowing sewers and toxic air in underserved areas. The nonprofit previously partnered with 10 to 20 community groups a year and aimed to reach at least 200 across 14 states. 'We're back to getting all these phone calls we can't respond to,' Wright, the executive director, says. 'It's disheartening and stressful.' The IRA grant was one of two big federal programs supporting the group's work, she says. It hasn't heard back about the other grant, which has helped fund the center for more than 30 years. Without it, the organization may need to lay off more staff. Not all organizations are feeling the same pressure. Executive Director Todd Paglia says that the advocacy group has never accepted corporate or government cash and that its model is designed specifically to avoid political shifts' impact on grants and giving. 'We want to maintain our independence,' he says. Paglia says that the organization has a 'diverse stream of revenue sources,' including tens of thousands of donors, foundations and many high-net-worth individuals. 'We are not having the downturn that a lot of groups are having,' he says. Some foundations are increasing their giving or easing administrative processes for grantees. But 'there are definitely going to be some foundations who do not want to run afoul of the Trump administration,' says Kempner, the founder and executive director of the Climate Philanthropy Catalyst Coalition, given its attacks on 'private-sector organizations with whom it disagrees.' Large institutional foundations are most likely to increase their grantmaking, says Kempner, whose coalition is composed of philanthropic networks, advisory firms and foundations. Corporate giving has also continued, he says, but organizations aren't talking about it as much or are shifting how they describe their climate programs, part of a phenomenon known as greenhushing. Philanthropies are also more likely to focus on legal defense of policies like the IRA and areas where there may be more climate momentum, including at the state and local level, Kempner says. The MacArthur Foundation announced in March that it plans to increase its giving over the next two years in response to Trump's attempts to cut budgets, going from 5% of its endowment to 6%. However, the extra cash will be spread across multiple focus areas, says Deborah Philbrick, a senior program officer within climate solutions at the MacArthur Foundation. 'It's not the role of philanthropy to backfill for the government in all cases. It's a balancing act,' Philbrick says. Some organizations she oversees are reporting funding gaps in the millions, she added. The Kresge Foundation, which provides about $20 million in grants to environmental organizations a year, says it is simplifying its processes to help nonprofits spend 'time and energy where it is needed most,' according to a letter President and CEO Rip Rapson sent out to more than 900 grantees on June 3. Kresge anticipates spending more this year to help grantees survive the federal funding pullback, says Rapson, noting nonprofits don't have the cash reserves needed to get through a year or 18 months. 'There's no way that philanthropy over the next two or three or four years can fill in where the federal government has pulled back,' he says. 'A foundation like Kresge is a mid-sized foundation, and yet we could deplete our annual grantmaking easily with just a handful of grants to people who are in vulnerable positions.' This article was generated from an automated news agency feed without modifications to text.
Yahoo
04-07-2025
- Business
- Yahoo
Want Cheaper Solar Panels, Home Batteries or a Heat Pump? Better Act Soon
(Bloomberg) -- The Republican-led US Senate's passage of legislation to eliminate incentives for clean energy means homeowners likely have until the end of the year to install solar panels, batteries and heat pumps before costs soar. NYC Commutes Resume After Midtown Bus Terminal Crash Chaos Struggling Downtowns Are Looking to Lure New Crowds What Gothenburg Got Out of Congestion Pricing Massachusetts to Follow NYC in Making Landlords Pay Broker Fees California Exempts Building Projects From Environmental Law The bill must still be reconciled with the House of Representatives version and signed into law by President Donald Trump. But the Senate action has dashed advocates' hopes that it might restore some Inflation Reduction Act (IRA) subsidies, or at least give people more time to claim a 30% tax credit on the five-figure cost of installing rooftop solar and home battery storage systems. The Senate bill terminates those subsidies, along with a $2,000 tax credit for buying heat pumps, after Dec. 31 and repeals a $7,500 tax credit for the purchase of some electric vehicles after Sept. 30. A loophole that allowed carmakers to pass that savings to customers who lease EVs also would end then. 'The repeal of the credits takes away an option for households to gain not just climate friendly appliances but appliances and systems that effectively enabled them to cut their energy bills,' said Ari Matusiak, chief executive officer of Rewiring America, a nonprofit that advocates for community electrification. He noted that 3.4 million households claimed IRA tax credits in 2023. Matusiak said the subsidies' original expiration in 2032 gave homeowners long-term assurance that when a fossil fuel furnace or water heater suddenly failed, they would receive financial help to replace them with high-efficiency but more expensive electric versions and could install subsidized solar panels to power the devices. Now with those tax credits disappearing, homeowners and installers are scrambling. Martyna Kowalczyk, chief executive officer of Solartime, a family-owned Dallas area solar installer, said she's been interviewing prospective project managers to handle an expected influx of customers in the coming months. 'I am trying to prepare for the rabbit race,' said Kowalczyk. 'Everyone who is considering solar will try to get in this year. And next year will be a drought.' For homeowners, there's reason to rush to their local installer. The tax credits would save more than $10,000 on an average $35,000 system. Most solar panels and home batteries are imported and their cost is likely to rise due to US tariffs. But the looming deadline to claim the tax credits means it's crucial to choose an installer with the capacity to design a rooftop array and battery system, obtain the necessary permits and complete the job in a matter of months. Under the House version of the tax legislation, only systems installed and 'placed in service' by a utility before the tax credits' expiration qualify for the incentives. That raises an issue beyond the control of the installer — the time it takes for your local utility to connect a completed solar array to the grid. In Northern California, for instance, utility Pacific Gas & Electric says it usually flips the switch on a new solar system in five to 10 business days but the process can take up to a month. The Senate bill softens the blow a bit by deleting the 'placed into service' requirement. But homeowners would have to pay for solar and battery systems by Dec. 31 to be eligible for the tax credit. The risk is that delays push completion and activation of a solar and battery array beyond the deadline to claim tax credits and a homeowner is left on the hook for the full cost of the system. Other factors to consider include the age of your roof and whether it needs to be replaced before installing solar panels. Also, make sure your home's electrical panel has sufficient capacity to accommodate a solar and battery system or heat pumps. Even before the tax bill, A1 Sun, a Berkeley, California-based installer, was already booked through the end of 2025. 'We are placed in the unfortunate position of both not being able to take advantage of any sort of 'gold rush' for new contracts this year, and also having a lot of anxiety about being able to meet our commitments to install those customers who already had contracts in place,' said Reuben Ly, sales manager for family owned A1 Sun. 'It's just pulling the rug out from underneath us,' he said of the tax bill. SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too America's Top Consumer-Sentiment Economist Is Worried How to Steal a House China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNET
13-05-2025
- Business
- CNET
From Heating Oil to Heat Pump: One Homeowner's Savings Story
Heating and cooling your home make up the biggest chunk of your home's energy costs. But not enough people are considering a heat pump as a solution. The Energy Information Administration data shows 31% of energy consumption comes from air conditioning and space heating. It's no wonder CNET's latest energy cost survey found 78% of Americans are stressed out about their utility bills. While these energy-efficient HVAC systems have gained popularity in recent years -- outpacing gas furnaces for the past three years -- the same CNET survey also showed only 14% of respondents plan to upgrade to a heat pump to help reduce those energy costs. At CNET, we are big fans of heat pumps because of their efficiency and ability to both heat and cool your home by transferring heat rather than generating it. While heat pumps are often advertised as a money-saving home upgrade, the actual savings depend on where you live, electricity rates and the HVAC system you're replacing. So, how much can you really save with a heat pump? We asked home electrification expert and Pennsylvania homeowner Wael Kanj, who is also a senior researcher at Rewiring America, a nonprofit that advocates for home electrification efforts. A heat pump case study: Pennsylvania Heat pumps are an energy-efficient way to keep your home comfortable year-round. Heat pumps run on electricity and move heat from inside your home to outside to cool it. Then it reverses the process for heating by pumping the heat inside. We spoke with a homeowner in Pennsylvania who tracked their heating and cooling costs for the past nine years. The home was built in the late 1950s and used an air conditioner and heating oil before installing a heat pump in January 2022. Prior to installing a heat pump, the homeowner's electricity costs included air conditioning, lights and home appliances. In 2019, the homeowner completed an energy audit to evaluate the home's efficiency and made weatherization improvements in 2020. We reviewed their energy cost data to assess the overall energy savings from switching to a heat pump compared with using electricity and heating oil. Before installing a heat pump, the homeowner's average electricity bill totaled $138 per month. After the heat pump, their average bill increased to $153. While the homeowner's total electricity costs increased, they saved on total heating and cooling expenses by installing a heat pump. Here's how. Total energy costs The following table displays the total costs for heating and electricity from 2016 to 2024. There's a significant decrease in overall costs after heat pump installation in 2022. Year Annual energy cost 2016 $2,800 2017 $2,700 2018 $4,000 2019 $3,050 2020 $2,100 2021 $2,500 2022 $1,700 2023 $1,900 2024 $1,850 Does a heat pump save you money? The short answer is yes, heat pumps save you money. But how much you save depends on the system you're replacing, how much energy you use and where you live. Your electricity bill might go up because heat pumps use electricity for both heating and cooling. But heat pumps will save money overall because you won't pay for heating fuels. Natural gas is cheaper than delivered fuels, like propane or heating oil. So if you're replacing delivered fuels, you will save more than someone replacing a natural gas heating system. You can determine your home's potential energy savings using the Energy Star calculator or Rewiring America Personal Electrification Planner. Energy savings depend on where you live As mentioned, location plays a big role in potential heat pump savings due to the climate, home size, insulation and energy costs. In cold climates where heat is used more frequently, those using delivered fuels will save more money with a heat pump than those using natural gas. However, some are concerned that extreme cold temperatures affect heat pump efficiency. "A lot of folks will probably hear heat pumps don't work where it's really cold. And that's just not true," Kanj said. "Many of the modern heat pumps work into negative Fahrenheit temperatures." For example, the Mitsubishi H2i still keeps working down to minus 13 degrees Fahrenheit. Below these temperatures, heat pumps can lose efficiency and need more energy to operate. Electricity costs in your area can also impact how much you save with a heat pump. Homes with poor insulation or drafty doors and windows may use more electricity to maintain indoor temperatures. Kanj recommends a home energy audit to make your home as efficient as possible. Expensive electric bills might be an issue for those in states with high rates, such as Hawaii, Connecticut and Texas. But heat pumps are more efficient than traditional systems, so it may not be as much as you think. For example, the Pennsylvania homeowner's electricity bill increased by only $15 after switching to a heat pump, and they still saved money overall by eliminating heating oil costs. It depends on your heating fuel The type of fuel you use for heating impacts how much money you can save with a heat pump. "If folks are using delivered fuels in their household, then we think there's a high likelihood those would save by switching to a heat pump," Kanj said. "Folks in the southeast and areas with more tempered climates have a higher likelihood of saving money too." The homeowner from the Pennsylvania case study saved $800 in their first year with a heat pump compared with the previous year using air conditioning and heating oil. The estimated annual savings from switching to a heat pump from delivered fuels is $810 more than switching from natural gas. "The savings in natural gas is less, but if you live in a place where you use more air conditioning a heat pump could help you save more," Kanj said. Heat pumps may not drastically reduce your bill if you already have cheap heating fuel, like natural gas. But prices are expected to rise in 2025. So installing a heat pump offers long-term energy efficiency, savings and potential environmental benefits when powered by renewable sources like solar energy. Heat pump savings comparison Here's how much you could save with a heat pump based on your current fuel type, according to Rewiring America. Fuel type Annual estimated savings Delivered fuels (propane or heating oil) $840 Furnace or baseboard heat $780 Natural gas $60 How much does it cost to run a furnace and air conditioner? Heating and cooling costs vary, and your heating fuel also plays a major role. Natural gas, electricity, propane and heating fuel are the most popular heating fuels, but usage varies by region. Natural gas is the most common heating fuel, used in 47% of US households. It's the main source in the northeast, the Midwest and the West. Electricity is more common in the South where winters are milder. Generally, heating and cooling costs are more expensive in regions with extreme temperatures. For example, Massachusetts uses more heat in the winter than warmer climates like Florida. This means homeowners in colder climates spend more on heating, while those in hotter areas pay more for air conditioning. The type of heating fuel also impacts your costs. Natural gas tends to be cheaper than electricity or delivered fuels, like propane and oil. Here's an idea of how location and heating source affect costs based on EIA data. State Average natural gas usage (million British thermal units) Average annual heating cost Primary heating source Details Hawaii 30.3 $1,538 Minimal heating (6%) Warm climate, only 57% homes use AC Alaska 125.1 $1,509 Space heating (99% use) Cold climate, only 7% homes use AC North Dakota 94.3 $1,648 Natural gas Cold climate, higher heating costs due to natural gas use Florida 50.3 $1,654 Electricity Mild winters, high cooling costs due to AC use The different types of heat pumps Air-source heat pumps are the most common type, but you have other options to choose from based on your home and budget.
E&E News
08-05-2025
- Business
- E&E News
Greenhouse fund recipient announces layoffs
A housing electrification nonprofit laid off more than a quarter of its staff Thursday because EPA has barred it from accessing its climate law grant award for nearly three months. Rewiring America, one of three coalition members jointly awarded $2 billion last year under the embattled Greenhouse Gas Reduction Fund program, announced Thursday that it had notified 36 employees that their positions would be terminated. In a letter to employees, CEO Ari Matusiak blamed EPA for freezing Power Forward Communities' accounts at Citibank and forcing the coalition and other nonprofit awardees to go to court to try to regain access to their funds. Advertisement 'The volatility we face is not something we created: it is being directed at us,' he wrote.
Yahoo
07-03-2025
- Politics
- Yahoo
Fact-checking Trump's claim that a group ‘headed up' by Stacey Abrams received $2 billion
Statement: The Trump administration identified $1.9 billion in federal dollars going to a 'decarbonization of homes' group Stacey Abrams 'headed up.' During his Tuesday night address to Congress, President Donald Trump called out Stacey Abrams, saying the two-time Democratic candidate for Georgia governor "headed up" a group that was an example of wasteful government spending. Trump listed several federal spending items he characterized as examples of "appalling waste." Among them, he said, was "$1.9 billion (that went) to (a) recently created decarbonization of homes committee, headed up — and we know she's involved, just at the last minute the money was passed over — by a woman named Stacey Abrams. Have you ever heard of her?" Some people in the crowd booed. The White House did not respond to our request for comment. But Trump appeared to be referencing a grant at the center of a related viral talking point involving Abrams that we recently rated False. Abrams, an attorney, is a voting rights activist. From March 2023 through the end of 2024, she was senior counsel for Rewiring America, one of five groups in a coalition that was awarded an Environmental Protection Agency grant. But Abrams did not "head up" the coalition, and there's no evidence she directly received any of the grant money. Trump appeared to be referring to a $2 billion Environmental Protection Agency grant awarded in April 2024 to a coalition of clean energy groups known as Power Forward Communities to fund energy efficient housing projects around the country. A news release announcing the coalition included a phrase similar to language from Trump's speech: "A new coalition forms for unprecedented US housing decarbonization." That coalition included Rewiring America and four other groups that came together in 2023 to apply for $9.5 billion from the Inflation Reduction Act's clean energy funding. After what it described as a robust review process, the EPA awarded the grant under then-President Joe Biden. Power Forward Communities said Feb. 24 it was beginning work on several projects including energy efficiency upgrades in Clinton, Iowa, a new apartment complex in Detroit, Michigan, and home renovations in Salem, Massachusetts. It said those investments would total about $539 million — or about 27% of the total EPA grant. There's no evidence Abrams directly received any of the grant money or that she currently leads either Rewiring America or the broader coalition. She is not listed on Rewiring America's "Meet the leadership team" portion of its website, for example. Her spokesperson, Joshua Karp, told PolitiFact that Abrams did not have a role at Power Forward Communities beyond her position at Rewiring America. Power Forward Communities CEO Tim Mayopoulos told Politico that Abrams was not paid by Power Forward Communities or involved beyond her work at Rewiring America. "Stacey Abrams has not received a penny of this EPA grant," Mayopoulos said in the Feb. 24 Politico article. "It was never the plan for her to receive any money from this grant. Power Forward Communities has no relationship with Ms. Abrams, other than the fact that she's one of the people who have advised one of our coalition members in the past." In October 2023, shortly after Rewiring America announced Power Forward Communities' creation, Abrams said in an X post she was "Thrilled to be part of (Rewiring America) and the Power Forward Communities coalition." In an apparent response to the mention in Trump's Tuesday speech, Abrams said she stood by her energy work. Trump said his administration identified $1.9 billion going to a "decarbonization of homes" group that Abrams "headed up." This is inaccurate. From March 2023 through the end of 2024, Abrams was senior counsel for Rewiring America, one of five groups in the Power Forward Communities coalition. Power Forward Communities was awarded a $2 billion EPA grant, but Abrams did not "head up" that group and there's no evidence she directly received any of the grant money. The coalition's CEO said Abrams was not paid by Power Forward Communities and did not receive any of the federal funds. We rate Trump's claim False. PolitiFact Contributing Writer Caleb McCullough contributed to this report. PolitiFact, Without evidence, social media posts claim fraud in EPA grant to Stacey Abrams-linked group, Feb. 26, 2025 Politico, Recipient isn't giving in as Trump's EPA tries to revoke climate grants, Feb. 24, 2025 Environmental Protection Agency, Biden-Harris Administration Announces $20 Billion in Grants to Mobilize Private Capital and Deliver Clean Energy and Climate Solutions to Communities Across America, April 4, 2024 Rewiring America, Stacey Abrams joins Rewiring America as senior counsel, March 14, 2023 Power Forward Communities, Power Forward Communities Announces More Than Half a Billion Dollars in Investments to Lower Housing Costs and Utility Bills for Families Nationwide, Feb. 24, 2025 Stacey Abrams X post, Oct. 15, 2023 Stacey Abrams X post, March 4, 2025 National Civil Rights Museum, Stacey Abrams: Champion of Voting Rights Honored at the National Civil Rights Museum, accessed March 5, 2025 Stacey Abrams Instagram post with CNN clip, March 5, 2025 This article originally appeared on Austin American-Statesman: Trump claim on decarbonization group receiving $2 billion is false
