U.S. Department Of Energy Announces $7.3 Million Grants For Small Manufacturers To Boost Energy Efficiency And Reduce Emissions

Under President Biden’s Investing in America agenda, the U.S. Department of Energy (DOE) has allocated over $7.3 million through the Industrial Assessment Centers (IAC) Implementation Grants program to aid 37 small- and medium-sized manufacturers (SMMs) nationwide. These grants are designed to facilitate facility improvements that enhance energy efficiency, lower costs, and reduce environmental impact, thereby bolstering the domestic manufacturing sector.

Administered by DOE’s Manufacturing and Energy Supply Chains Office (MESC) and supported by the Bipartisan Infrastructure Law, the IAC Implementation Grants program empowers SMMs to implement recommendations from energy assessments conducted by DOE and other qualified entities. Each grant, providing up to $300,000 per manufacturer per funding round, is expected to collectively abate approximately 17,000 tons of carbon dioxide emissions annually—equivalent to the annual emissions of 70 small businesses.

U.S. Secretary of Energy Jennifer M. Granholm emphasized the program’s role in advancing clean energy transitions while creating opportunities for American workers. “The clean energy transition presents a world of new opportunities for the American workforce,” stated Secretary Granholm. “These grants will enable small-and-medium sized manufacturers to increase their energy efficiency, lower costs, and reduce emissions, contributing to President Biden’s ambitious climate strategy.”

The initiative underscores the Biden-Harris Administration’s commitment to revitalizing U.S. manufacturing, fostering job creation, and promoting energy and environmental justice through the President’s Justice40 Initiative. By supporting more than 90% of the nation’s manufacturing base, these grants aim to elevate competitiveness while prioritizing energy efficiency and emission reductions.

For more than 40 years, the IAC Program, managed by MESC, has conducted over 21,000 energy assessments at SMMs nationwide, identifying potential annual energy savings of over $150,000 per manufacturer on average. The current round of 37 implementation grants, totaling $7.3 million, will be matched by nearly $20 million in industry investments.

Projects funded include installations of onsite solar and battery storage technologies, enhancements to lighting, HVAC systems, and industrial equipment electrification. Fourteen projects specifically target disadvantaged communities, aiming to mitigate greenhouse gas emissions and support local employment, aligning with the Justice40 Initiative.

To facilitate ongoing support, DOE has opened applications for additional IAC Implementation Grants throughout the next year, reflecting its commitment to sustain and expand clean energy initiatives across America. Interested SMMs are encouraged to apply, with the current round’s deadline set for July 1, 2024.