A federal program that was supposed to bring a total of $153 million to low- and middle-income Arizonans for household energy efficiency upgrades is on pause. Gov. Katie Hobbs’s office said federal funding for the program has been withheld.
Biden administration officials visited Phoenix last summer to announce the new initiative called Efficiency Arizona. Officials said the program would be funded through the 2022 Inflation Reduction Act, which had allotted nearly $9 billion in federal funding for states to set up home energy rebate programs.
The first phase of the Efficiency Arizona program was meant to help low-income households cover costs to repair air conditioners or replace broken units with energy efficient heat pump cooling systems.
In a press release Friday, the Governor’s Office of Resiliency said some contractors involved in that work now are not being paid as recent executive orders from President Donald Trump brought a halt to grants for the program.
“Efficiency Arizona's success depends on local contractor participation, and their ability to complete work and receive payment for that work. Withholding awarded funds is hurting working-class Arizonans and putting Arizona jobs at risk,” said Governor’s Office of Resiliency Director Maren Mahoney in the press release, adding that many vulnerable Arizonans were counting on cooling system upgrades as summer approaches.
A second phase of the program to offer rebates for middle-income Arizonans for energy efficient appliances had already been facing delays and had not yet launched. That is now also on pause.
Arizona is a party in a multi-state lawsuit to restore the Efficiency Arizona funding, and other federal grants.
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