It has been more than two years since President Biden signed the Inflation Reduction Acta landmark climate law that plans to allocate $8.8 billion to help residents make their homes more energy efficient and switch to all-electric appliances.

So where exactly is all the federal funding?

The main reason for this delay is the lack of state-level programs to handle the surge in federal resources. Colorado took a big step Wednesday to overcome this obstacle by launching the Home Electrification and Appliance Rebate program, which will offer residents rebates on climate-friendly heat pumps, cooktops or clothes dryers starting in 2025 .

However, a first phase of the program will invest $7.6 million in new federal funds into the state’s Weatherization Assistance Program, an existing set of free services intended to help low-income residents reduce their bills energy and to better insulate their homes.

“It really made sense to take a two-phase approach, with the majority of funding going toward direct-to-consumer rebates, but to start with weatherization customers where we have an existing program and could get funding more quickly,” said Will Toor. , the director of the Colorado Energy Office.

The weatherization program was a product of the energy crisis of the 1970s. Its original goal was to reduce energy bills by sealing drafts and adding insulation. In the decades since, Colorado has expanded the scope of the program install all-electric cookers and heating systems to help low-income households take advantage of renewable energy.

The initial investment is just a small part of a $70 million grant for the program already awarded to the state by the U.S. Department of Energy. $46 million of the funding will go toward rebates for low- and moderate-income consumers expected to launch next year. The rest will cover administrative expenses and contractor training, Toor said.

These discounts will provide a range of discounts to low- and moderate-income consumers. The program, for example, will provide up to $8,000 to reduce the cost of a cold climate heat pump providing an efficient source of all-electric heating and cooling. A resident could benefit from a rebate of up to $840 for electric ranges or clothes dryers.

The exact amount of those reductions is still being finalized and will depend on the buyer’s revenue and the total cost of the project, said Ari Rosenblum, a spokesperson for the Colorado Energy Office.

In addition to direct-to-consumer rebates, Colorado received an additional $70 million for projects to improve home energy efficiency. Toor said the additional funding will target multi-family housing and manufactured housing.

Colorado is not lagging behind other states in launching federally funded programs, Toor said. Rebates are only available to customers in seven states, and Colorado is among 18 whose funding applications have been approved by the federal government.

Toor said the overall rollout of Colorado’s programs has taken time due to a long list of federal goals and rules. While he believes these guardrails will help protect consumers and ensure fair access, he acknowledges they have made the process complicated.

“When Congress wrote the law … they weren’t necessarily thinking fully about how to simplify administration for the states,” Toor said.

Meanwhile, Colorado residents already have access to other programs intended to reduce the cost of energy efficiency and home electrification projects. The State offers its own heat pump tax credit and Xcel Energy, Colorado’s largest electricity and gas provider, offers heat pumps discounts for its customers.