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Washington (December 19, 2024) — Senator Edward J. Markey (D-Mass.), Chair of the Environment and Public Works Subcommittee on Clean Air, Climate, and Nuclear Safety, today reintroduced the Installing Clean Efficient Energy Hastens Our Transition (ICEE HOT) Act to electrify heating and cooling systems in residential and commercial buildings and industrial facilities, reduce greenhouse gas emissions, and strengthen U.S. manufacturing. The ICEE HOT Act expands the State Energy-Efficient Appliance Rebate Program by providing upstream and midstream rebates to manufacturers, distributors, and contractors. The bill also incentivizes the adoption of high-efficiency industrial heat pumps, a key technology for decarbonizing energy-intensive industrial processes like food and beverage manufacturing, chemical manufacturing, and textile production.

“This legislation is a win-win for our planet and our economy. The ICEE HOT Act will cut emissions, save households and businesses money, and support the creation of good-paying clean energy jobs,” said Senator Markey. “By expanding access to heat pumps and other energy-efficient technologies, we’re making bold investments in a sustainable, affordable energy future for all Americans.”

This bill would expand access to energy-efficient heating and cooling technologies, helping households and businesses save on energy costs while improving air quality and creating jobs across the supply chain. Electrification technologies such as heat pumps offer transformative benefits. Heating and cooling represent a major source of greenhouse gas emissions in residential and commercial buildings, contributing nearly 29 percent of U.S. emissions. Transitioning to electrified systems could reduce nationwide residential heating emissions by 36-64 percent, save households up to $300-$650 on energy bills, and prevent 3,400 premature deaths annually due to improved air quality. In the industrial sector, high-efficiency heat pumps could reduce emissions by 16 percent and recover waste heat to further slash energy use.

The ICEE HOT Act would:

  • Provide rebates covering 30 percent of the costs for manufacturing, distributing, and installing eligible building electrification products, including heat pumps, water heaters, induction stoves, and smart panels.
  • Expand support for industrial heat pumps, which can lower emissions and costs in energy-intensive industrial processes in various manufacturing sectors.
  • Require 40 percent of rebate funds to benefit disadvantaged businesses and entities employing disadvantaged individuals, advancing equity in alignment with Justice40 principles.
  • Provide additional incentives for using union labor and adopting higher-efficiency systems.
  • Streamline access to federal and state rebate programs, enabling incentive stacking and reducing administrative burdens.

The ICEE HOT Act allocates $10 billion in funding for the issuance of midstream and upstream rebates over fiscal years 2025 to 2032.

Senator Bernie Sanders (I-Vt.) cosponsors the bill.

The ICEE HOT Act is endorsed by Earthjustice.

“We applaud Senator Markey for reintroducing the ICEE HOT Act that will spur the use of heat pumps, our most efficient heating and cooling systems, in residential, commercial and industrial applications,” said Marty Hayden, Senior Policy Advisor at Earthjustice. “If we're serious about tackling the climate crisis, this is the type of legislation we need to drive real climate solutions.”

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