Regarded as two of the largest clean energy investments in the history of the United States, the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA) have paved the way for new jobs in clean energy and energy efficiency. In fact, initial third-party estimates have found that the IRA is projected to support over a million jobs in the energy and related manufacturing sectors over the next decade (Princeton). These job opportunities have also generated massive demand for expanded workforce training and certification pathways, including apprenticeships. Let’s look at the IRA apprenticeship requirements and review how registered apprenticeship programs typically work.

The Inflation Reduction Act includes provisions where clean energy tax credit or deduction amounts are substantially increased if certain labor practice requirements are met. These increased incentives are available to employers that pay their workers prevailing wages and hire registered apprentices on qualifying energy projects in construction, alteration, and/or repair projects – which can include energy efficiency measures as well as wind, solar, geothermal, carbon sequestration, and electric vehicle charging station projects.

With the passage of the Inflation Reduction Act, the federal government is for the first time providing the clean energy and energy efficiency sectors with long-term support and a stable business environment by extending these tax credits for a full decade. In the past, Congress let similar tax credits expire after only a few years or renewed them at the last minute, leading to boom-bust cycles. The IRA is a major step forward in ensuring that government spending creates good jobs for workers.

IRA Apprenticeship Requirements

The Inflation Reduction Act provides taxpayers with strong incentives to meet high labor standards as they are developing projects. To receive increased credit and deduction amounts, employers must meet certain requirements:

• Percent of total hours: Employers must hire a sufficient proportion of workers who are enrolled in registered apprenticeship programs. Under this requirement, employers must ensure that qualified apprentices account for at least 10% of the labor hours spent on project construction or repairs. This minimum threshold is rising to 12.5% for projects starting in 2023 and to 15% from 2024-on.
• Apprentice-to-journey-worker ratio: Employers must comply with federal or state requirements for apprentice-to-journey worker ratios. Every contractor or subcontractor who employs four or more people in the construction, alteration, or repair of a qualified facility must ensure at least one of those employees is a qualified apprentice.
• Exemptions: If an employer does not meet apprenticeship requirements, they may still be eligible for an additional credit under certain circumstances. For example, they may pay a fine or demonstrate that, despite making a good faith effort to request qualified apprentices from registered apprenticeship programs, their request went unanswered or was denied.

The IRA apprenticeship requirements apply to the following:

• Alternative Fuel Vehicle Refueling Property Credit
• Credit for Electricity Produced from Certain Renewable Resources
• Credit for Carbon Oxide Sequestration
• Credit for Production of Clean Hydrogen
• Clean Electricity Production Credit
• Clean Fuel Production Credit
• Investment Tax Credit
• Qualifying Advanced Energy Project Credit
• Clean Electricity Investment Credit
• Energy Efficient Commercial Buildings Deduction
• New Energy Efficient Home Credit (only prevailing wage requirement)
• Zero-Emission Nuclear Power Production Credit (only prevailing wage requirement)

In addition to these tax credit incentives, new IRA/IIJA grant programs specifically for Energy Auditor Training and clean energy employment are also contributing to the surge in demand for quality apprenticeship programs. Learn more about the value of registered apprenticeship programs.

Who is considered a “qualified apprentice?”

A qualified apprentice is a person employed by any taxpayer or contractor who is participating in a registered apprenticeship program that meets IRA requirements. The IRS and Treasury Department will be providing additional clarification in their forthcoming guidance.

How do interactions with an apprenticeship program typically work? 

Taxpayers and/or contractors interested in employing apprentices can take one of two approaches to hiring apprentices: first, they can sponsor their own registered apprenticeship program by working with either DOL’s Office of Apprenticeship or their state’s apprenticeship agency (if they are in a state that has one). The advantage of this approach is that companies can just hire their own “qualified apprentices” from within their own program.  

There are also “group registered apprenticeship programs” that place apprentices with multiple employers. Companies that are interested in hiring apprentices without having to stand up their own program can reach out to existing group apprenticeship programs to request a dispatch of apprentices. The registered apprenticeship program receiving the request can approve, deny, or not respond to it at all. The IRS and Treasury Department are currently developing guidance that will provide more clarity on how this process will work. Registered apprenticeship programs can be located using the DOL Office of Apprenticeship’s partner finder tool as well as through state apprenticeship agency websites. 

How Everblue training fits into the IRA Apprenticeship Requirements

Everblue stands ready to help individuals and employers alike meet their training and certification needs. We provide Solar Training and Energy Auditor Certification courses online and in person at our weatherization training center locations nationwide. We are also actively exploring other opportunities to get involved in the apprenticeship process. In fact, our solar training courses were recently approved for teaching through the state of Virginia’s Solar Technician Apprenticeship Program! To learn more about Everblue’s wide range of courses, call us at 800-460-2575.

The Interstate Renewable Energy Council (IREC) is a standard-setting and credentialing body that provides accreditation to individuals and organizations that provide high-quality job training in the building performance, energy efficiency, and renewable energy sectors.

IREC Accreditations are five-year credentials that can only be earned by meeting requirements set by IREC Standard 01023. Only 21 organizations in the U.S. have earned IREC Accreditation.

IREC’s credential program offers clean energy job training providers the opportunity to set their programs apart from their peers, but there is a reason it is given out sparingly. Applicants must go through a rigorous application process and meet extremely high standards to successfully obtain accreditation.

Specifically, IREC Accreditation requires applicants to demonstrate that their training programs:

• prepare students for a defined job
• are engaging for their students
• have a successful track record of delivery
• ensure an effective instructor-to-student ratio
• put systems in place for continuous improvement
• are responsive to changes in the industry
• cover a topic from a pre-approved list of IREC teaching topics
• comply with all other Credential Program policies outlined in the IREC Handbook

State & Local Government Agencies Encourage IREC Accredited Training

As the demand for high-quality clean energy job training explodes around the country, IREC Accreditation enables training providers to stand out as industry leaders in an increasingly crowded training marketplace.

It is also becoming more common for federal, state, and local government agencies to require that individuals involved in government-funded clean energy projects be trained by IREC Accredited trainers. For example, the U.S. Department of Energy highly recommends that individuals training to become energy auditors (who can then get involved in DOE’s Weatherization Assistance Program) get certified through an IREC Accredited training provider.

Everblue is one of the 21 training providers in the country with IREC Accreditation. Better yet, our weatherization training center locations are nationwide and our scheduling is very flexible and customizable, so we can work directly with community action agencies to provide high-quality training to a team of employees when it’s convenient for everyone.

IREC Accreditation Promotes Training Safety and Equity

IREC Accreditation helps protect the public from unqualified, unsafe, or under-equipped training environments. It also helps ensure that training providers are responsive to customer complaints and appeals and have an adequate process for remediating them. Accredited providers also ensure that the training experience they offer is fair and unbiased for all learners.

Everblue’s IREC Accredited Training Courses

Everblue, an industry leader in green job training, has earned IREC Accreditation on its Home Energy Professional HEP Energy Auditor and HEP Quality Control Inspector courses. These certifications directly prepare students for a defined job in the energy efficiency industry and qualify them to participate in the U.S. Department of Energy’s (DOE) Weatherization Assistance Program (WAP) – which supports 8,500 jobs and provides weatherization upgrades to approximately 35,000 homes every year.  

In addition, when U.S. DOE officially releases new funding through its Energy Auditor Training Grant Program and related Contractor Training Program, it will be crucial for state energy offices and nonprofit organizations to partner with an IREC Accredited training provider to deploy those funds. IREC Accreditation serves as a nationally recognized, industry-backed, third-party acknowledgment of an organization’s high level of quality and sustainability.

Choose High Quality Training

The intent of the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA) is to invest in and support a clean energy workforce that can competently contribute to and grow our nation’s economy. With unprecedented federal investment at stake, grant recipients must prioritize partnering with accredited organizations like Everblue that have a proven track record of success.

To learn more about Everblue’s IREC Accredited training, give us a call at 800-460-2575.

If you missed the NASEO Energy Policy Outlook Conference that occurred in early February in DC, we’ve got a summary for you! This year’s conference was particularly interesting, as many participants specifically sought more information about the new home energy rebate programs that are anticipated to launch from the Inflation Reduction Act.

Here were the major themes and takeaways from the event:

Combining Federal Funds

State energy offices expressed interest in stacking/braiding rebates, tax credits, and other funding programs created by the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) to ensure households can receive comprehensive energy upgrades that might not be feasible under one single program.

States asked the U.S. Department of Energy (DOE) to focus on aligning the rules of these programs with each other (e.g. by hiring dedicated staff to resolve programmatic differences, meeting with the various implementation agencies to coordinate and plan strategically, etc.). DOE will need to provide state energy offices with clarity on how the below programs can be layered:

• DOE Home Energy Rebates Program ($8.8B through IRA)
• DOE Weatherization Assistance Program ($3.5B through IIJA)
• HHS Low-income Home Energy Assistance Program ($500M through IIJA)
• DOE State Energy Program ($500M through IIJA)
• DOE Energy Efficiency and Conservation Block Grant ($430M through IIJA)
• IRS Section 25C: Energy Efficiency Home Improvement Tax Credit (IRA)
• IRS Section 45L: New Energy Efficient Home Credit (IIJA)
• DOE Energy Efficiency Revolving Loan Fund Capitalization Grant Program ($250M through IIJA)

Requests for Flexibility in DOE’s Forthcoming Home Energy Rebates Program Guidelines

States and NASEO (National Association of State Energy Officials) strongly urged DOE to provide as much flexibility as possible to state energy offices in the design and implementation of their Home Energy Rebate programs. For example:

• Allowing states to use other tools and methods besides BPI 2400 for calculating energy savings
• Involving states in the development of DOE tools and resources
• Providing states with the flexibility to decide for themselves whether to use any template offerings DOE may provide
• Allowing states to determine which documentation is necessary for determining participant eligibility for rebates
• Soliciting ideas for DOE technical assistance directly from states before executing any DOE plan or agreement
• Deferring to states on how often to require program implementors to evaluate program performance
• Allowing flexibility for determining “first time purchase” of appliances funded through DOE’s Home Electrification Program. For example, electric heat pumps that are replacing older electric resistance heating units (which are extremely prevalent in the Southern U.S.) should count as first-time purchases of appliances

NASEO Recommendations for DOE Home Energy Rebates Program

NASEO shared three program-specific recommendations:

1. Confirm that DOE Home Electrification and Home Efficiency Programs can be used in the same home.  
2. Affirm that rebates should not be issued for purchases completed before the launch of a state’s rebate programs.
3. Allow for non-electric supplemental systems (e.g. dual-fuel heat pumps), as homes in certain parts of the country require additional back-up systems for resilience.

DOE Updated Timeline (Tentative) for $8.8B Home Energy Rebates Program

DOE plans to follow a phased guidance and funding approach. In the first phase, DOE will release an Administrative and Legal Requirements Document (ALRD) in April 2023 with DOE’s guidelines for state energy offices’ program plans. States will then submit their applications in May 2023 in order to access their administrative and planning funds (essentially to help cover the work required to develop their program plan). DOE expects to distribute administrative funds as early as June ’23.

DOE expects ALRD #2 to be posted in July ’23. States would then provide a more detailed program design submission for DOE’s review and approval. The soonest that any states would start receiving the rest of their formula allocation would be September ’23. 

DOE plans to offer 3 “waves” of funding for states based on their readiness to deploy their rebate programs:

• Wave 1: November ’23
• Wave 2: December ’23- January ’24
• Wave 3: February- March ’24

Several states at the NASEO conference asked DOE if they can “raise their hand” to preemptively elect which wave they will fall into.

Responses to DOE Request for Information (RFI) are due March 3, 2023.

As always, we are intensely following the news about the DOE Home Energy Rebates so stay tuned for more information as it becomes available!

Low-income households and other individuals living in historically underserved or “disadvantaged” communities face disproportionately higher energy burdens – meaning they spend a high percentage of their gross income on their energy bills (including electricity, home heating, etc.) Individuals experiencing high energy burdens are forced to make the difficult choice between paying their utility bill each month or purchasing other necessities, like groceries or medicine. According to U.S. Census data, the average national household energy burden for low-income households is 8.6%. This far exceeds the 6% of income that is considered the maximum affordable amount for energy bills. It also contrasts sharply with the 3.1% of income that the average U.S. household spends on home energy bills.

Energy-burdened communities are more likely to deal with other compounding challenges as well. For example, they typically experience higher rates of adverse health effects and are more vulnerable to environmental disasters driven by climate change. As part of its working definition of a “disadvantaged community,” the U.S. Department of Energy (DOE) has identified 36 distinct burden indicators ranging from poor internet access to high rates of unemployment.

One of the leading causes of high energy burdens in disadvantaged communities is the prevalence of inefficient homes and appliances. Investing in energy efficiency retrofits and weatherization measures help reduce whole-home energy use and serve as an effective long-term strategy for addressing high energy burdens in historically underserved communities.

Programs like the DOE Weatherization Assistance Program (WAP) have made significant progress in reducing energy costs for low-moderate income households by providing them with cost-effective building shell improvements such as insulation and air sealing; heating, ventilation, and air conditioning systems; lighting; and appliances. Home weatherization has several other major benefits beyond making homes more energy efficient. For example, they also support household health and quality of living by improving indoor air quality, improving safety by removing energy-related hazards like carbon monoxide leaks, creating stable jobs in the local community, and lowering household carbon emissions.

While the benefits of these programs are vast, their impact has historically been limited by a lack of available funds, among other factors. The COVID-19 pandemic also disrupted the operation of existing energy efficiency and weatherization programs; prohibiting contractors from entering peoples’ homes to provide much-needed upgrades.

The Inflation Reduction Act: DOE Home Energy Rebate Programs

In 2021, President Biden signed the Inflation Reduction Act (IRA), which represents the most significant legislation in U.S. history to address home energy affordability and climate change. The law will make it more affordable for U.S. families to buy energy-efficient appliances, weatherize their home, and save on their energy bills each month.

By making highly efficient electric appliances and energy efficiency measures more accessible to communities most in need, President Biden is making good on his promise of advancing environmental justice. During his first week in office, President Biden signed Executive Order 14008, which established the Justice40 Initiative. The goal of Justice40 is to ensure that at least 40% of the benefits of all federal investments flow to disadvantaged communities. 

The IRA creates two new programs that will provide households with $8.8 billion in rebates for high efficiency electric appliances and for whole-home energy retrofits. Collectively, they are known as the Home Energy Rebate Programs. Individually, they are referred to as the Home Efficiency Program and the Home Electrification Program.

The Home Efficiency Program will provide $4.3 billion to states to help residents make their entire home more energy efficient, while the Home Electrification Program provides $4.5 billion to states and tribes to install highly efficient home appliances and equipment in resident homes.

How DOE’s Home Energy Rebates Specifically Help Low-Income Communities

Both programs specifically target low-moderate income households. While the Home Efficiency Program is open to homeowners of all income levels, low-moderate income homeowners are eligible for double the amount in rebates (up to $8,000 for whole-home weatherization upgrades compared to normal income households). In contrast, the Home Electrification Program is only available to low-moderate income homeowners and multi-family building owners whose tenants are at least 50% low-moderate income.

Additionally, under the Home Efficiency Program, contractors who perform a home energy efficiency retrofit on a home in a disadvantaged community are eligible to claim a $200 rebate for each home they weatherize.

How Will Income Eligibility for the Home Energy Rebate Programs be Determined?

The Inflation Reduction Act defines “low- or moderate-income households” as individuals or a family whose income is less than 80% of their area’s annual median income. However, DOE has not yet confirmed how it will require states to verify potential program participants’ income.

For more information on DOE’s Home Energy Rebate Programs, see these related articles:

• Career Skills Training
• Contractor Training Program
• Energy Auditor Training Grant
• HOMES Rebate Program

Paving the Way for Economic Growth in Underserved Communities

The energy efficiency and electrification rebate funding available under the IRA will not only deliver energy savings benefits to energy-burdened households but will also spur economic growth through the creation of stable, good-paying jobs. Hundreds of thousands of home performance contractors specializing in fields ranging from insulation to HVAC installation will be needed to meet the demand for upgrades created by the IRA.  

While these once-in-a-generation programs under the IRA present exciting career opportunities for job seekers, it also highlights the urgent need for new and existing contractors to begin training and getting certified so that they’re able to take on the future volume of work.

The Benefit of Building Performance Institute (BPI) Certifications

As the premier credentialing organization for the home performance industry, the Building Performance Institute (BPI) will play an integral role in helping new and experienced contractors prepare for IRA rebate funding by getting appropriately trained and certified. BPI provides certifications, standards, and programs that help contractors develop their professional proficiencies and build their careers.

BPI has a long history of teaching contractors the value of whole-home energy improvements. BPI’s “house as a system” approach focuses on how improvements throughout the entire home work together to give homeowners the most cost-effective results. Instead of hiring multiple contractors that specialize in a single trade, it can be more efficient and cost-effective to hire a BPI-certified energy auditor who can diagnose issues in a home and solve them by performing services like air sealing and HVAC replacement. BPI certifications not only serve to provide contractors with valuable knowledge and technical expertise, but can also be used as prerequisites by more experienced candidates pursuing advanced certifications like BPI’s energy auditor certification.  

The Building Performance Institute is also closely aligned with DOE’s goals for the Home Energy Rebate Programs – like BPI, DOE is also looking at weatherization measures with a “whole-home” approach to ensure the greatest benefit for households.  

Furthermore, BPI certification provides a strong foundation for contractors who want to align their business services more directly with the DOE Weatherization Assistance Program (WAP). In order for a state agency to provide weatherization services funded by WAP, the agency must employ a certified Energy Auditor and/or Quality Control Inspector. These individuals have worked their way up the ranks of the BPI certification program to earn the highest levels of certification through DOE’s Home Energy Professionals (HEP) program.

Preparing for the Opportunity

DOE Home Energy Rebates created by the Inflation Reduction Act will create unprecedented demand for weatherization services, and the most qualified people to perform this work are BPI-certified energy auditors and contractors. If you want to gain new clients and grow your business, now is the best time to earn a BPI Certification so that you can participate in the Weatherization Assistance Program and Home Energy Rebate Programs.

Are you ready for the new business that this funding will generate? Learn how you can hone your skills today with Everblue’s wide-ranging and flexible course offerings!