Energy (Energy Efficiency)

HR 3862, the Clean Water SRF Parity Act of 2025, expands eligibility for Clean Water State Revolving Fund (SRF) assistance to include qualified nonprofit entities and privately owned treatment works operators. The bill adds provisions allowing nonprofits to receive SRF funds for constructing, acquiring, or improving treatment works, and creates a new section (l) for privately owned treatment works to access funds for upgrades, water conservation, energy efficiency, security measures, and other specified activities. Crucially, it requires that financial assistance for private operators must primarily benefit the end-users served by the treatment works, not the shareholders or owners. This directly affects nonprofits managing water infrastructure and private utility companies operating treatment facilities, ensuring SRF funds support community water needs under defined conditions.

The Heating and Cooling Relief Act (HR 2486) expands the Low-Income Home Energy Assistance Program (LIHEAP) to help low-income households struggling with energy costs. It increases funding to cover all eligible households (those with incomes up to 250% of poverty level or 80% of State median income), sets a goal that no household should spend more than 3% of income on energy, and requires states to operate assistance programs year-round. The bill includes new protections against utility shutoffs for 2 years after assistance is received, prohibits late fees during the 6 months following assistance, and mandates weatherization and energy efficiency improvements in low-income housing. It also requires states to develop extreme heat response plans and addresses the $21 billion in residential utility arrears as of September 2024.

Weatherization Enhancement and Readiness Act of 2025 This bill reauthorizes through FY2030 and modifies the Weatherization Assistance Program. Under the program, the Department of Energy (DOE) provides grants for low-income households to improve the energy efficiency of their homes. The bill increases the cap on the average assistance provided per home from $6,500 to $12,000. The bill also directs DOE to include in its annual report to Congress a description of the impacts of enhancement and innovation readiness efforts on eligibility for assistance under the program.

This bill creates a 10% federal tax credit for labor costs associated with installing energy-saving mechanical insulation on qualifying systems. It directly affects businesses or property owners in the U.S. that install insulation meeting specific energy efficiency standards (ASHRAE 90.1) on depreciable mechanical systems, such as HVAC or industrial equipment. The credit applies to labor costs paid or incurred after December 31, 2025, but expires after December 31, 2028. It is structured as part of the general business credit and does not cover material costs, only the labor for installation.

S 2185, the Energy Circuit Riders Act of 2025, creates a federal program to fund trained professionals ("Energy Circuit Riders") who assist rural communities with energy efficiency and clean energy projects. Eligible entities like states, tribes, nonprofits, or rural planning commissions can receive grants (up to 75% federal funding) to hire these riders for 3-6 years. The riders provide direct support including energy planning, audits, financing guidance, and help accessing federal/state incentives to communities in rural areas. The program requires grantees to serve at least two rural areas and mandates annual reports on energy savings, cost reductions, and emissions cuts. It authorizes $25 million annually for fiscal years 2026-2030.

Don’t Mess With My Home Appliances Act This bill modifies the process by which the Department of Energy (DOE) issues or revises energy conservation standards for consumer products such as household appliances, including by requiring DOE to consider additional factors related to the cost and availability of such products. First, the bill allows DOE to amend an energy conservation standard for a consumer product when needed rather than by a deadline. The bill also allows DOE to grant a petition to revoke or amend energy conservation standards if the standards (1) result in additional costs to consumers, (2) do not result in significant conservation of energy or water, (3) are not technologically feasible, and (4) result in a product (e.g., gas stoves) not being commercially available in the United States to all consumers. Additionally, the bill modifies the criteria used to prescribe new or amended energy conservation standards, including by establishing new criteria for determining whether a standard is economically justified. The bill establishes disclosure requirements for DOE meetings with entities that have (1) ties to China or the Chinese Communist Party; (2) produced studies regarding, or advocated for, regulations or policy to limit, restrict, or ban the use of any type of energy; and (3) applied for or received federal funds. The bill also prohibits DOE from prescribing new or revised energy conservation standards for distribution transformers. Finally, the bill allows DOE to prescribe certain new or amended energy and water conservation standards for clothes washers and dishwashers.

The CHEERS Act creates a new tax deduction for restaurants, bars, and entertainment venues that purchase energy-efficient draft beer equipment. It amends tax code Section 179D to treat stainless steel or aluminum draft containers and tap systems as "qualified energy-efficient property," allowing businesses to deduct these costs. The deduction applies only to equipment used specifically for distributing and selling alcohol in eligible venues, meeting existing energy efficiency standards. The provision takes effect for equipment placed in service after December 31, 2024.

The LIT Act of 2025 repeals three existing Department of Energy energy efficiency rules for general service lamps (common incandescent light bulbs). It directly affects manufacturers and retailers of traditional incandescent bulbs by removing regulatory requirements they previously had to meet. Key mechanisms include amending the Energy Policy and Conservation Act to eliminate specific references to incandescent standards and formally terminating three finalized rules (from 2022 and 2024) that established minimum efficiency levels. This bill makes no new efficiency requirements for these bulbs but removes the existing ones.

HR 7326 (ABODE Act) creates a grant program to fund the development or rehabilitation of affordable housing. It directs the Department of Housing and Urban Development (HUD) to award grants to organizations building or rehabbing single- and multi-family homes for households earning 50% or less of the area median income. Projects must prioritize reducing costs, improving energy efficiency, enhancing accessibility for people with disabilities, and using resilient designs. HUD will require grantees to build a set number of homes meeting these standards before receiving full payment, and must report results to Congress within two years.

The Smart Cities and Communities Act of 2025 aims to help cities and communities across the United States implement smart technologies that improve services, safety, energy efficiency, and resilience. The bill establishes a federal council to coordinate agency efforts, creates a resource guide with best practices for local governments, and provides $100 million annually for demonstration grants to test smart city technologies in various communities. It also creates a cybersecurity working group to develop evaluation tools, a workforce training program focused on smart city technologies, and a voucher program to connect cities with national laboratories. The act requires a study on innovative financing for smart city projects and promotes international cooperation to expand U.S. exports of smart city technologies while ensuring privacy and security standards.