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Electrification Caucus welcomes $250 million investment in heat pump manufacturing

WASHINGTON - U.S. Senators Martin Heinrich (D-N.M.) and Tina Smith (D-Minn.) and U.S. Representatives Kathy Castor (D-Fla.) and Paul Tonko (D-N.Y.), the co-chairs of the Electrification Caucus welcomed the U.S. Department of Energy’s (DOE) announcement of a new $250 million funding opportunity to accelerate electric heat pump manufacturing in America.

This funding, provided by the Inflation Reduction Act, will help America build a clean energy economy, create good-paying manufacturing jobs, and help families save money on their energy bills. This is the first funding opportunity announcement stemming from DOE’s new authorization, invoked by President Biden last summer, to utilize the Defense Production Act (DPA) to increase domestic production of five key clean energy technologies, including electric heat pumps.

Increased use of efficient electric heat pumps, for heating and cooling, will help lower energy costs for more American families and businesses and create healthier indoor spaces through American-made clean energy technologies.

“Electric technologies have bypassed their fossil burning competitors in efficiency and performance,” said Senator Heinrich. “Boosting manufacturing of electric heat pumps in the United States creates jobs and helps make these technologies more affordable, so every American has access to better indoor air quality, lower monthly energy bills, and a better quality of life.”
“The clean energy transition is going to happen the question is whether we lead or follow. Thanks to the Inflation Reduction Act, we’re in a strong position to lead,” said Senator Smith. “This investment to boost heat pump manufacturing in the U.S. will help accelerate our clean energy transition while lower energy bills and creating good-paying jobs. It’s a big win for the climate, our economy, and America’s future as a clean energy leader.”
“The Inflation Reduction Act is lowering energy costs for American families and small businesses – and good-paying manufacturing jobs and home improvement businesses are growing across America,” said Representative Castor. “By investing in domestic heat pump manufacturing, we are creating clean energy jobs and lowering costs at the same time. This is a win-win for the American people, and I look forward to more clean energy ‘Made in America’ announcements in the days ahead.”
“When Democrats crafted the Inflation Reduction Act, we set out to address the major challenges of our time and fulfill our promises to the American people by driving down costs for everyday consumers, creating good-paying jobs, and pushing forward a clean energy future,” Congressman Tonko said. “This announcement shows once again how this law is delivering on our promises. I’m thrilled to join my colleagues cheering this DOE investment in electric heat pump manufacturing and pledge to continue moving forward efforts that save families money while making our planet a stronger, healthier place.”
DOE is extending applications to manufacturers that are interested in creating new facilities or expanding existing production capacity to efficiently manufacture more electric heat pump systems, components, and materials in the United States.

DOE is seeking projects that will: 
  • Construct new commercial-scale facilities or expand existing facilities to create new or additional domestic production capability;
  • Retool or retrofit existing commercial-scale facilities to transition manufacturing from non-heat pump HVAC systems and/or water heating equipment to produce electric heat pump materials, heat pump components, and heat pump systems; 
  • Invest in America's clean energy manufacturing workforce by providing good-paying, union jobs.
    Concept papers, which are required for all applicants, are due on May 19, 2023, at 5 p.m. ET.
Full applications are due on August 1, 2023, at 5 p.m. ET.

More detailed information from the Department of Energy on the funding announcement can be found here.