Inflation Reduction Act (IRA) of 2022: State-Based Home Energy Efficiency Contractor Training Competitive Grant Program | DE FOA 0003316

Opportunity Information: Apply for DE FOA 0003316

The Inflation Reduction Act (IRA) of 2022: State-Based Home Energy Efficiency Contractor Training Competitive Grant Program is a U.S. Department of Energy (DOE) funding opportunity designed to help states quickly build and expand the residential energy efficiency and electrification workforce. The program is commonly referred to as the Training for Residential Energy Contractors (TREC) Program, and it was established under Section 50123 of the IRA. In practical terms, the opportunity is meant to strengthen the pipeline of trained, credentialed contractors and workers who can carry out home upgrades tied to major IRA-backed consumer incentive programs, including the Home Efficiency Rebates Program, the Home Electrification and Appliance Rebates Program (together often called the Home Energy Rebates Programs), and the Energy Efficiency Home Improvement Credit.

At the core of the opportunity are three connected goals. First, it aims to lower the financial burden of training for contractor firms and their employees by offering workforce development supports that can include subsidized training, exam fees, certifications, and licensing costs. Second, it seeks to expand access to testing and credentialing so that contractors are not only trained, but also formally certified to install energy efficiency and electrification measures in homes at a consistent, high-quality standard. Third, it supports states in building or scaling state-sponsored workforce programs, often in partnership with nonprofit organizations, so they can recruit, train, and place a diverse local workforce capable of delivering the expected surge in demand for home energy improvements driven by new federal incentives and rebates.

DOE is making up to $40 million available under this competitive round of TREC funding, which is intended to complement (not replace) TREC formula funds that were announced separately. The eligible applicants for this competitive opportunity are state governments, which typically means applications will be led by State Energy Offices or comparable statewide entities. The administering office listed is the DOE Golden Field Office, and the funding instrument is a discretionary grant. The opportunity is cataloged under Assistance Listing/CFDA number 81.041 and is associated with activity areas spanning education, employment and labor training, and energy.

The funding is organized into two topic areas that states can use to match different workforce needs. Topic Area 1 focuses on training small contractor firms. Under this topic, State Energy Offices can use grant funds to support existing small contractors and their employees with training and certifications that prepare them to deliver energy efficiency and electrification improvements that qualify under the IRA home rebate programs. The emphasis is on helping smaller firms participate in and benefit from the growing market for rebate-eligible home upgrades, while improving the consistency and quality of installations through recognized training and credentialing pathways.

Topic Area 2 is aimed at innovative, effective, and equitable workforce development programs. This topic supports states that want to build or strengthen workforce models that go beyond standard training approaches, especially by partnering with nonprofit organizations to design, enhance, and implement programs that train, test, certify, and connect workers to employment. A central priority here is expanding access for underrepresented populations and groups that may face barriers to entry in the skilled trades, including new entrants to the workforce, youth ages 17 to 25, incumbent workers seeking upskilling, displaced workers transitioning careers, and contractors who need to add competencies related to energy efficiency and electrification. The intent is not only to train people, but to create durable program structures that lead to real jobs supporting home energy upgrades in local communities.

Key administrative details included in the notice indicate an award ceiling of $5,000,000 per award, with an original application closing date of July 12, 2024. Applications are handled through DOE's Infrastructure eXCHANGE portal, which serves as the online system to access the full Funding Opportunity Announcement (FOA) materials and submit required application components. Overall, the program is positioned as a workforce accelerator for state-led implementation of IRA home energy initiatives, helping ensure there are enough qualified, credentialed workers and contractors to meet consumer demand while supporting quality installations, job growth, and broader participation in the clean energy transition.

• The Golden Field Office in the education, employment, labor and training, energy sector is offering a public funding opportunity titled "Inflation Reduction Act (IRA) of 2022: State-Based Home Energy Efficiency Contractor Training Competitive Grant Program" and is now available to receive applicants.
• Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 81.041.
• This funding opportunity was created on 2024-04-02.
• Applicants must submit their applications by 2024-07-12. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
• Each selected applicant is eligible to receive up to $5,000,000.00 in funding.
• Eligible applicants include: State governments.

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