President Biden issued presidential determinations in June 2022 providing the Department of Energy (DOE) with the authority to use the DPA as a tool to accelerate domestic manufacturing and deployment of key energy technologies as a way to bolster national security. In August of 2022, Congress passed and the President signed into law the Inflation Reduction Act, which included $500 million to carry out the Defense Production Act. According to the determination by the President, DOE is able to use $250 million of these funds and is to focus the investment on domestic manufacturing and deployment of heat pumps. In the fall of 2022, DOE announced a notice of intent and request for information on $250 million to accelerate domestic production and deployment of electric heat pumps under DPA authority.
DOE with support from the White House Climate Policy Office—convened a series of roundtable meetings and issued subsequent Requests for Information (RFIs) to gather stakeholder input on how DOE can best implement this new DPA authority if funding is provided to use that authority. DOE has prepared an executive summary of the key themes and recommendations heard from more than 400 stakeholders throughout this feedback effort. The summary is provided for information-purposes only, and DOE is not bound by its contents.
Overview: Defense Production Act: Electric Heat Pumps
Office:Office of Manufacturing and Energy Supply Chains |
New Program:Yes |
Funding Amount:$250,000,000 |
Funding Mechanism:Grant |
Recipients:Entities capable of establishing or expanding manufacturing capacity |
Period of Availability:To remain available through 9/30/2024 |
Assistance Listing:TBD |
Formula Funding:No |
Tribal Eligibility:Yes |
Cost Share Requirement:Limited to applicants seeking financial assistance for up to 50% of the cost |
Program Announcements
Read more about each of the Domestic Heat Pump Manufacturing projects selected for negotiation of award.
More Information
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 program.
Next Milestone
Open for Applications: April 18, 2023
Concept papers, which are required for all applicants: due on May 19, 2023, at 5 p.m. ET.
Full applications: due on August 1, 2023, at 5 p.m. ET.
Expected Selections Announcement: 4th quarter 2023
Selections Announcement: November 17, 2023
Program Announcements
- Biden-Harris Administration Announces $169 Million to Accelerate Electric Heat Pump Manufacturing as Part of Investing in America Agenda (November 17, 2023)
- Biden-Harris Administration Announces $250 Million to Accelerate Electric Heat Pump Manufacturing Across America (April 18, 2023)
- Defense Production Act: Request for Information (November 2022)
- DOE Seeks Input on How Defense Production Act Could Support National Security by Strengthening Grid Reliability (October 3, 2022)
- President Biden Invokes Defense Production Act to Accelerate Domestic Manufacturing of Clean Energy (June 6, 2022)