In my memory, concerns over energy have been in the forefront of everyone’s collective mind stemming back to the days of the first Arab Oil Embargo of 1973.

What I didn’t know is that two years earlier, the first U.S. President to ever address the nation’s need for meeting the growing demand for economical clean energy was Richard Nixon. It was Nixon who established the Energy Policy Office in 1973 and that was the first step leading to the creation of the U.S. Department of Energy (DOE).

A lot has changed since those days more than half a century ago. From regulating the use of nuclear energy to the development of solar, geothermal, and wind energy projects, the DOE has been the instrument of every presidential administration since Nixon.

Can executive orders dismantle cumbersome energy policies?

The Biden administration’s Inflation Reduction Act (IRA) of 2022 created the single largest investment in climate and energy in American history. The idea was to enable the country to tackle the climate crisis, advance “environmental justice,” and secure America’s position as a world leader in domestic clean energy manufacturing.

IRA’s goal was to put the U.S. on a path to achieve the Biden Administration’s climate goals, including a net-zero economy by 2050.

This, along with other DOE and Biden initiatives led to a multi-state push to de-carbonize and electrify energy-using appliances, including HVAC equipment.

The IRA started creating a demand that was beneficial to the HVAC Industry, especially in terms of new heat pump technologies that bring more efficiency and comfort, even in colder climates.

Trump’s Sweeping Changes

After the Trump inauguration, he issued an executive order (EO) entitled Unleashing American Energy. It called for an “immediate pause” in the provision of funds under the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. This pause could impact a broad swath of existing clean energy incentives.

The executive order’s full impact remains to be seen. Here are a few point contractors should be aware of:

  • The executive order, for now, does not impact tax credits like Section 25C
  • Contractors who have launched at least partial programs prior to the EO should have some confidence those programs will continue
  • The EO only pauses the funding for grants, loans, and contracts under IRA to give Trump’s administration time to reassess the process.

It’s important to note that congressional action is needed to actually repeal the full IRA and its energy provisions. Chances are, based on the current political situation in Congress, there will NOT be a full repeal.

Read more about the impact of the Trump EO on the Mercom Clean Energy Insights website. Suffice it to say, that despite some uncertainties, these moves by the Trump administration can still have a positive impact, especially for those trained High-Performance HVAC™ contractors.

The fact is that consumers remain interested in energy savings and home comfort. By testing and measuring entire systems, you can show how your customers can save energy dollars — whether through duct renovation, Air Upgrades, or equipment replacement.

From an NCI perspective, the key is to communicate to your customers, share the data, and let them know that the regulatory situation is fluid and that you will keep them informed.

This is the state of the electrification movement as of this writing.