DeSantis Says No Thanks to $377 Million in Federal Energy Funds

Florida Republican Governor and 2024 presidential contender Ron DeSantis quietly rejected hundreds of millions of dollars in federal energy funding, as the Biden administration touts the benefits of its marquee climate law on the campaign trail in battleground states.

(Bloomberg) — Florida Republican Governor and 2024 presidential contender Ron DeSantis quietly rejected hundreds of millions of dollars in federal energy funding, as the Biden administration touts the benefits of its marquee climate law on the campaign trail in battleground states.

The funding, totaling about $377 million, included hundreds of millions of dollars for energy-efficiency rebates and electrification as part of the Inflation Reduction Act, as well as money from the bipartisan infrastructure legislation that became law in 2021.

The Florida Department of Agriculture and Consumer Services’s Office of Energy notified the Energy Department last month it was “respectfully” withdrawing applications for the funds after DeSantis issued a line-item veto for a $5 million federal grant for the state to set up programs to distribute the rebates.

The move comes as US President Joe Biden and others have taken to the road to show how funding from the Inflation Reduction Act and other administration policies are helping Republican states, even as every single Republican voted against approving his signature climate law – which included some $374 billion in funding for clean-energy programs and tax credits. 

It also comes amid Republican backlash against “woke” energy-efficiency standards, including from DeSantis himself who has proposed spending millions of dollars to enact tax credits for gas stoves. 

A Florida government official, speaking on background, said the $5 million in funding was earmarked to hire people to administer the money for the energy efficiency home-rebate program, including a website and other necessary planning to distribute the funds. The official, who wasn’t authorized to speak on the record about the matter, characterized the decision as surprising.

DeSantis also rejected a $24 million federal grant from the bipartisan Infrastructure Investment and Jobs Act that would have been used to upgrade rural waste-water systems. These grant funds were among some $511 million in line-item vetoes made by DeSantis before signing the state’s $116.5 million budget into law last month. 

Following the governor’s move, applications for grant funding totaling some $377 million were withdrawn, according to the Florida Department of Agriculture and Consumer Services. That included nearly $174 million set aside for rebates for energy-efficiency improvements and another $173 million for a rebate program for the purchase of energy-efficient home appliances. Another $7 million was poised for a training program for electrification contractors. 

“These programs directly benefit home owners and renters and these rebates mean that people in Florida would get lower utility and healthier and more comfortable homes as well as lower greenhouse gas emissions,” said Lowell Ungar, director of federal policy for the American Council for an Energy-Efficient Economy. “The federal money will help pay for that so it will be a real loss if they don’t implement these programs.”

A DeSantis spokesman declined to comment.

An administration official said Florida still has the option of applying for the funding at a later time.

DeSantis’ rejection of the funds was first reported by The Capitolist, a blog with ties to NextEra Energy Inc.’s Florida Power & Light Co., a state utility.

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