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Enhanced Use of Defense Production Act of 1950

Federal Agency: Department of Energy
Bureau or Office: Office of Manufacturing and Energy Supply Chains

IRA Statutory Location: 30001

Program Description: Section 30001 appropriates $500 million to carry out the Defense
Production Act (DPA). President Biden issued presidential determinations providing the
Department of Energy (DOE) with the authority to use $250,000,000 of the DPA funding to
accelerate domestic production of key energy technologies. In November 2022, DOE announced
a notice of intent and request for information on a proposed $250 million DPA investment to
accelerate domestic electric heat pump manufacturing.

Funding Amount: $250,000,000

Period of Availability: To remain available through September 30, 2024.

Funding Mechanism: Grants

New or Existing Program: New

Eligible Recipients: Entities capable of establishing or expanding manufacturing capacity.

Tribal Eligibility: Yes

Eligible Uses: New domestic production facilities projects for heat pumps (air- or ground-
source), heat pump water heaters, or heat pump system components where domestic production
would address a clear supply-chain vulnerability. This focus area includes investment in
workforce needed to support manufacturing through partnerships with labor unions and other
workforce groups, apprenticeship programs, and pre-apprenticeship programs. Renovation of
existing production facilities projects to transition from manufacture of other HVAC systems or
water heating equipment that use fossil energy to produce electric heat pumps, heat pump water
heaters, or heat pump system components. This focus area includes investment in workforce that
can transition to support manufacturing of electric heat pumps through partnerships with labor
unions and other workforce groups, apprenticeship programs, and pre-apprenticeship programs.

Cost Share Requirements: Limited to applicants seeking assistance for up to 50% of the cost

Formula Funding: No

SAM.gov Assistance Listing: TBD

Relevant Announcements: Biden-Harris Administration Announces $250 Million Investment
from Inflation Reduction Act for Domestic Heat Pump
Manufacturing (11/2/2022)

32 B U IL D IN G A C L E A N E N E R G Y E C O N O MY
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