Eight national heating fuel and home comfort associations praise restoration of fuel neutrality in state-administered rebate programs.

The revised guidance, issued on May 29, 2026, replaces the Biden Administration's electrification-focused rules and restores fuel neutrality to the state-administered IRA rebate programs. Specifically, the new rules prohibit use of these rebates to force households off heating oil, propane, and natural gas. The rules also prioritize weatherization, so that rebates first reduce a home's overall energy use before installing HVAC equipment, and permit homeowners to keep their existing heating system when installing a heat pump.

The coalition sponsoring the letter represents heating oil and propane marketers, natural gas utilities, plumbing and HVAC contractors, and hearth and HVAC appliance and equipment manufacturers and distributors.

In the letter, they note, "Above all, it promotes affordability by focusing on measures that actually lower a household's energy use and protects reliability at a moment when the grid is under mounting strain."

The U.S. DOE is currently drafting final documents to implement this guidance, so this letter is well timed. States that have already launched IRA home energy rebate programs must comply with the revised guidance by the end of August. Those still finalizing their programs must incorporate the new guidance before they roll out.

Please reach out to NEFI President and CEO Jim Collura at jim.collura@nefi.com with any questions.

Save the Date:
Webinar: Home Energy Rebates, Energy Choice Act, and Consumer Choice

Presented by NEFI and PHCC
July 29, 10:30 a.m.

The webinar will provide a comprehensive update on the revised rebate guidance and on NEFI's broader energy choice efforts, including ongoing litigation over state-level fuel bans in New York and California.