The Bipartisan Infrastructure Law (BIL) of 2021 (Pub. L. 117-58), and the Inflation Reduction Act (IRA) of 2022 (Pub. L. 117-169) included several incentives that are expected to increase demand of electric heat pumps in retrofit and new markets but may not ensure domestic capacity of electric heat pumps at the speed and scale required to meet the anticipated demand​. In June 2022, President Biden issued five determinations under the Defense Production Act (DPA) of 1950 (50 U.S.C. 4501 et seq.), including a presidential determination to allow DOE to use its delegated DPA authorities to expand the domestic production capability for electric heat pumps.
Section 30001 of the IRA appropriated $500 million to carry out the DPA, of which $250 million was subsequently allocated to the Department of Energy to support the growth of manufacturing needed to meet the anticipated growing demand for electric heat pumps. This funding could help scale up U.S. heating, ventilation, and air conditioning (HVAC) and water heating (WH) manufacturing; accelerate installation of high-efficiency electric heat pumps in homes, qualified buildings; and industrial settings, and complement investment coming through other BIL and IRA provisions described earlier.
Deadlines:
- Required Concept Papers: May 19, 2023
- Full Applications: Aug. 1, 2023
Topic Area 1: New or additional domestic production capability: The objective of this topic area is to construct new commercial-scale facilities or expand existing facilities to create new or additional domestic production capability for electric heat pump materials, heat pump components, and heat pump systems (air- or groundsource heat pump, heat pump water heaters) where domestic production capability would address clear supply-chain vulnerabilities.
Topic Area 2: Retrofit an existing production capability: The objective of this topic area is to retool or retrofit existing commercial-scale facilities to transition manufacturing from non-heat pump HVAC systems and/or water heating equipment to produce electric heat pump materials, heat pump components, and heat pump systems (air- or ground-source heat pump, heat pump water heaters) where domestic production capability would address clear supply-chain vulnerabilities. This topic area also considers retooling and retrofits to existing heat pump materials, components, and systems facilities that would significantly increase heat pump efficiency and/or expand market to cold climates.
The proposed prime recipient and subrecipient(s) must be domestic entities. The following types of domestic entities are eligible to participate as a prime recipient or subrecipient of this FOA: 1. Institutions of higher education; 2. For-profit entities; 3. Non-profit entities; and 4. State and local governmental entities, and tribal nations.
An entity may submit more than one Concept Paper and Full Application to this FOA, provided that each application describes a unique, scientifically distinct project; provided that each application is only submitted to one topic area; and provided that an eligible Concept Paper was submitted for each Full Application.
DOE expects to make a total of approximately $250,000,000 of federal funding available for new awards under this FOA, subject to the availability of appropriated funds. DOE anticipates making approximately 6-20 awards under this FOA. DOE may issue one, multiple, or no awards. The awards are anticipated to vary between $10,000,000 and $50,000,000. DOE awards will not exceed $50,000,000.