McKee-Matos Administration, Congressional Delegation Applaud U.S. EPA $450 Million Regional Award to Accelerate Adoption of Heat Pump Installations, Lower Costs, Cut Emissions

Published on Monday, July 22, 2024

PROVIDENCE, RI – Following a major announcement by the Biden-Harris Administration this morning, Governor Dan McKee along with U.S. Senators Jack Reed and Sheldon Whitehouse and Congressmen Seth Magaziner and Gabe Amo, applauded the selection of a five-state coalition, including Rhode Island, to receive $450 million in federal Climate Pollution Reduction Grants from the U.S. Environmental Protection Agency (EPA).

The coalition, led by Connecticut, will use the funding to launch the New England Heat Pump Accelerator, a regional heat pump market transformation program that seeks to have heat pumps make up at least 65 percent of residential heating, cooling, and water heating sales by 2030. Rhode Island expects to receive approximately $35 million to $40 million through this program. 

A heat pump is a cost-effective and highly efficient dual-use home heating and cooling appliance. The electric units use less energy to heat or cool homes and save money on bills in addition to reducing CO2 emissions from natural gas. Heat pumps' use of new technologies makes them more reliable and efficient in all types of climates and can improve indoor air quality and reduce pollutants.

“This federal grant will help Rhode Island build on our successful Clean Heat RI program which is already helping to deploy heat pump installations across the state, lower costs for residents, and advance our Act on Climate emission reduction objectives,” said Governor Dan McKee. “Today’s announcement is a big climate win for Team Rhode Island and our partnering states. Together, we are proud to receive the only award in New England and the second largest in the nation from today’s EPA Climate Pollution Reduction Grant awards. We thank the Biden-Harris Administration, our congressional delegation, and all federal partners for continuing to invest in Rhode Island’s future.”

"The New England Heat Pump Accelerator will empower low- and moderate-income households and disadvantaged communities to lower their energy costs by installing heat pumps. Direct investments in underserved communities which spur long-term savings, such as this program, are key to increasing household wealth across Rhode Island," said Lieutenant Governor Sabina Matos. "This successful grant application is another example of the way the Biden-Harris administration, our outstanding federal delegation, and the Office of Energy Resources are delivering for Rhode Islanders."

“The federal government is revving up its engine to help people make the switch to cleaner and cheaper home energy options. Heat pumps are reliable, and efficient and offer long-term economic and environmental benefits, helping consumers save big on their energy bills while reducing America’s dependence on foreign oil. This is a smart investment in incentivizing people to make the upgrade to heat pumps so they can save money, increase the comfort and safety of their homes, and build cleaner communities. The more adopters, the more people will see the benefits that heat pumps generate in terms of home heating and cooling,” said Senator Jack Reed.

“The New England Heat Pump Accelerator will advance progress toward the Ocean State’s clean energy goals and ensure a safe, livable planet for our children and grandchildren,” said Senator Sheldon Whitehouse, who helped shape major climate provisions included in the Inflation Reduction Act. “Thanks to Democrats’ Inflation Reduction Act, we’re sending resources directly into communities across Rhode Island to help reduce climate pollution and make energy-efficient heating and cooling more accessible and affordable for families.”

“Transitioning to energy-efficient appliances like heat pumps is a smart move that can lower energy bills and save Rhode Islanders money during hot summers and cold winters alike,” said Congressman Seth Magaziner. “I’m glad that this federal funding will ultimately put more money in the pockets of working people in RI and across the country.”

“Thanks to today’s announcement, thousands of residents in Rhode Island will soon be able to leverage federal support to upgrade their homes,” said Congressman Gabe Amo. “These resources will help Ocean State homeowners save on their monthly bills and I am encouraged these energy-efficient transformations will also accelerate our commitment to reduce our state’s carbon footprint, meet our clean energy goals, and combat the climate crisis. I applaud President Joe Biden and Administrator Michael Regan for their commitment to invest in Rhode Island and bring down costs for families.”

The New England Heat Pump Accelerator will prioritize collaboration and information-sharing between states and will be made up of three main hubs: a Market Hub, an Innovation Hub, and a Resource Hub.

The Market Hub will boost participation in existing heat pump programs in the coalition states by closely engaging manufacturers, distributors, and contractors. This hub will drive sales, ensure adequate stocking, and promote quality installations of heat pumps that are well-suited to New England's climate and housing types.

The Innovation Hub will focus on helping low- and moderate-income households and disadvantaged communities adopt heat pumps. Each state will carry out two multi-year projects. These include strategies for heat pumps in multifamily buildings and mobile homes and adapting heat pump technologies to overcome specific housing challenges.

The Resource Hub will be a central portal where distributors, contractors, program implementers, and other stakeholders in the heat pump supply chain can access important data and educational resources.

Governor McKee launched Rhode Island’s heat pump program in September 2023. The highly successful incentive program, Clean Heat RI, is the largest energy rebate program for Rhode Islanders ever launched by the State’s Office of Energy Resources (OER). OER will administer the New England Heat Pump Accelerator in Rhode Island.

“This award will further ensure that all Rhode Islanders, regardless of their housing situation, can benefit from the energy savings and health improvements offered by air-source and ground-source pumps," said Rhode Island Acting Energy Commissioner Chris Kearns. "This coalition has allowed the New England states to work together on energy initiatives and I am excited to continue this partnership to advance our state's clean energy goals."

The federal funds are being made available to Rhode Island and other New England states under the Inflation Reduction Act (P.L. 117-169), which President Biden signed in August of 2022 to help make clean energy more abundant, affordable, and accessible.