Defense Production Act: Electric Heat Pumps

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.

Recipients

Entities capable of establishing or expanding manufacturing capacity.

Period of Availability

To remain available through 9/30/2024.

Funding Source

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.