Additional Funding is Available for the Advancement of Clean Energy in Manufacturing Facilities

On September 12, 2024, the United States Department of Energy (DOE) awarded an additional $9 million of grants through the Industrial Training and Assessment Centers (ITACs) Implementation Grants program. Managed by the DOE’s Office of Manufacturing and Energy Supply Chains (MESC), the program is aimed to assist small- and medium-sized manufacturers (SMMs) with the implementation of energy projects including onsite solar and heat pump installation, lighting and heating system improvements, electrification of industrial equipment and fleets, along with workforce development, recruitment, and training. Supported by the Bipartisan Infrastructure Law, the first year of the program in 2022 started with $80 million in funding, with additional funding available in the following years depending on demand.

The additional $9 million investment will go towards supporting energy projects at 47 SMMs across the United States. SMMs make up over 90% of the country’s manufacturing base, making cost-effective energy efficiency opportunities a useful investment. The 47 selections are expected to diminish over 28,000 tons of carbon dioxide emissions per year.

In collaboration with ENERGYWERX, the DOE has re-opened quarterly applications for SMMs to obtain implementation grants. Grants of up to $300,000 for each unique assessment recommendation will be available at a 50% cost share. To be eligible for funding, assessments must be made by ITACs, DOE Onsite Energy Technical Assistance Partnerships (TAPs), or DOE-approved third-party assessors.

Projects covered under the grant include assessment recommendations that improve onsite energy/material efficiency, promote cybersecurity infrastructure, increase site productivity, reduce waste production, or reduce greenhouse gas emissions and other sources of air pollution.

To be eligible, facilities must have annual gross sales of less than $100 million, fewer than 500 employees, and annual energy bills between $100,000 and $3.5 million. All eligibility requirements can be determined by the last completed fiscal year or the year of the completed assessment.

Qualified assessments can be made at no-cost from either ITACs or Onsite Energy TAPs. Third party or ITAC-equivalent assessors can also make recommendations, but the DOE cannot guarantee that these assessments will be free of charge.

Photo Source: Office of Manufacturing and Energy Supply Chains

The applications are available year-round on a rolling basis. The current round of applications opened on October 2, 2024, with a deadline of January 10, 2025, at 3:00pm Eastern Time (ET). There will be informational webinars or “office hours” on November 21, 2024 from 2:00-3:00pm ET and December 12, 2024 from 2:00-3:00pm ET. The program selectees will be announced in Spring 2025.

Following the grant application, the DOE will make selections and sign the award documents. After an SMM implements the intended project, they will submit the invoice of incurrent costs to the DOE to receive the appropriate funding.

MESC suggests that those who are eligible should apply soon and follow the available guidance which will result in a greater chance of the applicant being funded. Previous applicants should review the feedback on past applications to fill in any gaps and provide additional information. The assessment recommendations should be listed clearly in the attached report and should not include any that have already been implemented. Attending the informational webinars are a great opportunity to ask questions and clarify any application concerns. Those interested can email info@energywerx.org with any further questions.

So far under the program, there have been 162 grant awardees across 36 states, with an average grant amount of $161,000. Selected project examples include HVAC upgrades, combined heat and power, onsite power installation, and LED upgrades. See the full list of previous selectees here.

How can NCCETC help?

The NC Clean Energy Technology Center (NCCETC) is uniquely positioned to assist with this grant program. Director of the Center’s Clean Power and Industrial Efficiency (CPIE) team, Isaac Panzarella, leads the Southeast Onsite Energy TAP. There are ten regional Onsite Energy TAPs nationwide that assist facilities in reducing emissions, lowering costs, and transitioning to clean energy. The Southeast TAP serves Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, Puerto Rico, South Carolina, Tennessee, and the Virgin Islands.

Photo Source: U.S. DOE Better Buildings Solution Center

The Onsite Energy TAPs are available to meet with SMMs who are interested in onsite energy recommendations and to answer questions and provide technical reviews. Technical assistance through the Onsite Energy TAP is offered free of charge due to DOE funding. To request an assessment or technical assistance, contact Isaac Panzarella at ipanzarella@ncsu.edu or Art Samberg at asamber@ncsu.edu

The ITACs Implementation Grants Program is a valuable resource for the advancement of domestic manufacturing while increasing productivity, improving energy processes, and reducing emissions. Those eligible for the grants are encouraged to reach out to a qualified assessor to begin the process, and to overall contribute to a greater clean energy economy in the United States.