Nov 8 -- The U.S. Department of Energy (DOE) Office of Manufacturing and Energy Supply Chains (MESC) announces the notice of availability (NOA) of a notice of intent and request for information on DOE's support of domestic manufacturing of electric heat pumps using Title III of the Defense Production Act (DPA). DOE invites public comment on the RFI regarding the application process, examples of eligible projects, potential funding sizes required, and criteria for qualification and selection of eligible projects to participate in the electric heat pumps DPA program. Responses will be reviewed and considered on a rolling basis but are due no later than 5 p.m. (ET) on December 2nd, 2022.
In June 2022, President Biden issued five determinations under the DPA, including a presidential determination to allow DOE to use its delegated DPA authorities to expand the domestic production capability for electric heat pumps. In early October 2022, DOE issued a RFI to determine how best to leverage the authority invoked by President Biden to accelerate domestic production of four of the five technologies that received Presidential Determinations under title III of DPA. This joint NOI and RFI focuses on electric heat pumps, the fifth technology that received a Presidential Determination.
U.S. manufacturing output of electric heat pumps, which include ground-source and air-source heat pumps as well as both space heating and water heating equipment, is not yet at the rate or volume needed to fully achieve U.S. climate and energy security goals. Buildings, homes, offices, schools, hospitals, military bases, and other critical facilities drive more than 40% of all U.S. energy consumption. U.S. energy supplies are largely dependent on fossil fuels that remain susceptible to geopolitical impacts from nations that are not U.S. strategic partners or allies.
Section 30001 of the Inflation Reduction Act (IRA) appropriated $500 million to carry out the DPA, and $250 million of that amount was allocated to the Department of Energy for title III of the DPA to support the growth of manufacturing needed to meet the anticipated growing demand for electric heat pumps. DPA resources 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.
This NOI describes the proposed funding approach to eligible entities in the electric heat pump industry, including the proposed electric heat pump solicitation process, program structure and criteria. Through this RFI, DOE seeks comment on the application process, examples of eligible projects, potential funding sizes required, and criteria for qualification and selection of eligible projects to participate in the electric heat pumps DPA program. This NOI and RFI are available at: https://www.energy.gov/mesc/defense-production-act-request-information
DOE RFI: https://www.energy.gov/sites/default/files/2022-11/Heat%20pumps%20NOI_RFI_Final_Clean_FINAL110122_0.pdf