Agency: Department of Energy – Office of Manufacturing and Energy Supply Chains
Description:
Appropriates $500 million to carry out the Defense Production Act (DPA).
Bill Section:
30001
New or Existing:
New
Potential Cost:
$500,000,000
Timeline:
FY22-24
Implementation Status/Rulemaking:
In November 2022, the Department of Energy published a notice of intent and request for information on a proposed $250 million DPA investment to accelerate domestic electric heat pump manufacturing. Source
In April 2023, the Department of Energy issued published a Funding Opportunity Announcement, with final applications due August 1, 2023. Source
TCS Notes:
The Defense Production Act (DPA) is a law originally enacted in 1950 to give the president “emergency” authority over U.S. domestic energies in order to promote national security. The DPA allows the president to require companies prioritize federal orders for goods and services over non-federal orders, take actions to restrict hoarding of supplies, as well as make loans, loan guarantees, or purchase agreements to promote domestic manufacturing.
The Biden Administration allocated $250 million of the $500 million appropriated by this section to the Department of Energy to support domestic manufacturing of electric heat pumps, heat pump water heaters, and heat pump system components.