The State-Based Home Energy Efficiency Contractor Training Grants, also known as the Training for Residential Energy Contractors (TREC) Program, seeks to accomplish three goals:

1. reduce the cost of training contractor employees by providing workforce development tools for contractors, their employees, and individuals including, but not limited to, subsidizing available training, testing certifications, and licenses for high-quality jobs;
2. provide testing and certifications of contractors trained and educated to install home energy efficiency and electrification technologies and deliver residential energy efficiency and electrification improvements; and
3. fund states to partner with nonprofit organizations to develop and implement a State sponsored workforce program that attracts and trains a diverse set of local workers to deliver the influx of new federally-funded energy efficiency and electrification programs—including the IRA-funded Home Efficiency Rebates Program, Home Electrification and Appliance Rebates Program (Home Energy Rebates Programs); and Energy Efficiency Home Improvement Credit.

This program was established by Section 50123 of the Inflation Reduction Act. For this competitive program, DOE is making up to $40 million in TREC funds available to states, territories, and the District of Columbia to complement the previously announced TREC formula funding. There are two topic areas in this opportunity:

• Topic Area 1: Training Small Contractor Firms – State Energy Offices may use topic area one funding to train and certify small contractor firms and their employees to deliver energy efficiency and electrification improvements. DOE will fund States to support existing small contractor firms through training and certifications so that the contractor firm employees can deliver energy efficiency and electrification improvements eligible for rebates under the Home Efficiency Rebates Program or the Home Electrification and Appliance Rebates Program.
• Topic Area 2: Innovative, Effective, and Equitable Workforce Development Programs – State Energy Offices may use topic area two funding to implement innovative, effective, and equitable workforce development program models that deliver contractor training program curriculum. States can collaborate with nonprofit organizations to design/enhance and implement workforce development, training, certification, and employment programs that train, test, and certify underrepresented populations, new entrants to the workforce, youth ages 17-25, incumbent workers, displaced workers, and contractors to conduct home energy efficiency and electrification improvements under the Home Energy Rebates Programs.