DOE Industrial Assessment Centers (IAC) Implementation Grant Program - Open Solicitation

To see the most recent opportunity details please CLICK HERE

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The U.S. Department of Energy (DOE), in collaboration with its Partnership Intermediary, ENERGYWERX, has re-opened applications for small and medium-sized manufacturing firms (SMMs) to receive grants of up to $300,000, at 50% cost share, to implement recommendations made in Industrial Assessment Centers (IAC) assessments and/or DOE Combined Heat and Power Technical Assistance Partnership (CHP TAP) assessments – including what are now called “Onsite Energy TAP” assessments – and, once qualified, other assessments submitted previously for qualification as “IAC-equivalent.”

The DOE Industrial Assessment Centers(IAC) Implementation Grant Program (Implementation Grant Program) provides grants funded by section 40521 of the Bipartisan Infrastructure Law, 42 USC17116, to small and medium-sized manufacturers (SMMs) to implement recommendations made in IAC and Combined Heat and Power Technical AssistancePartnership (CHP TAP) assessments since 2018, and in recommendations made inequivalent assessments since 2021. These grants will bolster the American manufacturing base by supporting projects to improve energy and material efficiency, to increase productivity, and to reduce emissions at SMMs. DOE further intends that these grants will advance the objectives of the Justice40initiative by improving business performance, increasing energy affordability, and creating pathways to high-quality jobs in disadvantaged communities by driving federal investment into these communities and, where possible, utilizing registered apprenticeship programs and IAC Program participants in implementation efforts.

In addition, the program will continue accepting applications from other assessment providers to qualify assessments from other parties as “IAC-equivalent.” Qualification of third-party assessors will expand availability of IAC grants for SMMs across the United States.

The following third-party assessors have been tentatively qualified as IAC-equivalent (SMMs can now apply for IAC grant funding for recommended projects in these entities’ energy assessments since 2021, subject to those entities signing a memorandum of understanding with DOE):

• Alternative Energy Systems Consulting, Inc.
• Cascade Energy
• CLEAResult
• eSai LLC
• Go Sustainable Energy, LLC
• Michaels Energy
• New York State Energy Research and Development Authority: Flexible Technical (Flex Tech) Assistance     Program
• North Carolina Advanced Energy Corporation
• Pennsylvania Technical Assistance Program (Penn TAP)
• Utah DEU Step Wise Program

Effective immediately, this grant program will operate on a rolling basis: applications may be submitted at any time throughout the year as funds are available and will be reviewed quarterly.

The next review will occur for applications submitted by December 31, 2023.  The subsequent review dates are March 31, June 30, and September 30, 2024. Up to $80 million in total funding is currently available, and DOE expects to make more available through FY2026. Note that elements of the solicitation (e.g., eligibility, criteria, deadlines) are subject to change with each quarterly review period – please sign up for alerts below to get updates.

Next monthly informational Office Hours – December 7, 2023

The U.S. Department of Energy (DOE) will host Office Hours on December 7, 2023 from 1-2 PM ET to answer any remaining questions from potential applicants before the submission deadline on December 31, 2023.

Workstream 1: Implementation Grants

This workstream involves collecting grant applications from SMMs to implement recommendations made in IAC, CHP TAP,or qualified equivalent assessments that meet the eligibility and prioritization criteria described below.

Note: Eligible potential applicants must submit one (1) form FOR EACH FACILITY in which grant support is requested.

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Workstream 2: Third-Party Assessor Qualification

This workstream involves collecting applications from entities interested in having their assessments qualify as "equivalent to IAC assessments" in accordance with 42 USC§17116(a)(2)(C), so that their eligible clients can apply for implementation grants.

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• October 19, 2023 from 1:00-2:00 PM ET: COMPLETED
• November 16, 2023 from 1:00-2:00 PM ET: COMPLETED
• December 7, 2023 from 1:00-2:00 PM ET: COMPLETED

To apply for an implementation grant, click here. (Next deadline: December 31, 2023, at 5pm ET.)‍

To apply for qualification as an “IAC-equivalent” assessment provider, click here. (Next deadline: December 31, 2023, at 5pm ET.)

To learn more and apply for anIAC assessment, click here.

To learn more and apply for a CHP TAP assessment, click here.

Workstream 1 Timeline (Estimated)

• Applications Open: October 6, 2023
• Office Hours Session: October 19, 2023, from 1:00-2:00pm ET, with additional sessions to follow roughly monthly.
• Application Deadline: Rolling (Quarterly review). Next deadline is December 31, 2023 at 5:00pm ET.
• Review and Selection: Quarterly, with next round of selections announced in early 2024.
• Awarding and Implementation: Selected SMMSs will finalize awards with ENERGYWERX and begin implementation.

Workstream 2 Timeline (Estimated)

• Applications Open: October 6, 2023
• Office Hours Session: October 19, 2023, from 1:00-2:00pm ET, with additional sessions to follow roughly monthly.
• Application Deadline: December 31, 2023 at 5:00pm ET.
• Review and Selection: Early 2024.
• Awarding and Implementation: Selected assessment providers will be asked to sign a memorandum of understanding with DOE spelling out the terms of the qualification. Once the MOU is signed, eligible clients can apply for implementation grants.

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Applications in this round of funding must meet all of the following criteria:

• Applicant is a domestic entity [1]
• Applicant is a manufacturer – that is, an entity that engages in the mechanical, physical, or chemical transformation of materials, substances, or components; or, applicant is a water or wastewater treatment facility
• Applicant had gross annual sales of less than $100 million in the most recently completed fiscal year OR the year in which the assessment was completed (if different)
• Applicant annual energy bills were between $100,000 and $3.5 million in the most recently completed fiscal year OR the year in which the assessment was completed (if different)
• There were fewer than 500 of employees at the assessed plant site in the most recently completed fiscal year OR the year in which the assessment was completed (if different)
• All proposed projects address recommendation(s) made in an IAC or CHP TAP assessment conducted since January 1, 2018, or another qualified assessment since January 1, 2021
• No proposed project efforts already have been implemented

Applications in this round of funding will be evaluated and prioritized using the following criteria:

Impact and Feasibility (50%)

• The degree to which the proposed project(s) has the potential to improve the assessed plant site’s energy efficiency and productivity
• The degree to which the proposed project(s) is likely to reduce greenhouse gas emissions (higher priority for projects that align with the goal of achieving a net-zero economy)
• The likelihood that the project will improve the applicant’s competitiveness, given the payback period and expected return on investment (cost savings/implementation cost) over a 10-year period after implementation
• The adequacy of the proposed project management approach, including the clarity of project scope, cost, work plan, and key milestones to ensure project objectives are met, as well as the availability of sufficient Project Manager and team time

Need for Financial Assistance and CostShare (25%)‍

• The degree to which the applicant demonstrates the need for financial assistance to implement the proposed project, considering available funding sources, up front costs, and estimated payback period
• Whether the grant will supplement, not supplant, any private or State funds available to the eligible entity to carry out the covered project
• Whether the applicant leverages and demonstrate successful securement of alternative funding sources(e.g., Private Banks, State & Utility Programs, Energy Performance Saving Contracts, SBA) to carry out the covered project

Community Benefits (25%)

• Whether the facility is located in, and/or the extent to which the proposed project(s) provides economic and/or environmental benefits to, (1) a disadvantaged/underserved community, as defined by the Justice40 Initiative  and Council on Environmental Quality’s Climate and Economic Justice Screening Tool, or (2) an energy community
• Whether the applicant is a Minority Owned Business[2], Woman Owned Business,Veteran Owned Business, or Small Business Administration-qualified HUB Zone business or Section8(a) Business Development program participant, or the degree to which the applicant demonstrates concrete plans to work with those businesses as vendors or contractors in the implementation of the funded project(s)
• The degree to which the applicant demonstrates that they are a responsible employer that offers and/or retains high-quality jobs with employer-sponsored benefits, consistent with the Department of Commerce and Department of Labor’s Good Jobs Principles; operates pursuant to a collective bargaining agreement, formal labor management partnership, or other approach to supporting worker’s access to collective bargaining (e.g., allows a card-check process or pledges neutrality in unionization drives); participates formally in a registered apprenticeship program; and/or demonstrates existing partnerships with organizations serving workers facing barriers to employment

In addition, DOE may consider portfolio-wide program policy factors in determining which full applications to select for awards, including:

• The degree to which the proposed project contributes to a diversity of applicant types and sizes of applicant organizations and represents diversity in the technical area when compared to the existing DOE project portfolio and other projects selected from this FOA.
• The degree to which the proposed project optimizes the use of available DOE funding to achieve programmatic objectives.
• The degree to which the project contributes to the overall portfolio’s impact on the strength of the American domestic manufacturing base across the nation.
• The degree to which the project will employ procurement of U.S. iron, steel, manufactured products, and construction materials.
• The degree to which the proposed project is likely to lead to increased high-quality employment and manufacturing in theUnited States.
• The degree to which the project focuses on repurposing, reusing, or decarbonizing existing industrial    infrastructure and/or facilities.
• The degree to which the proposed project, or group of projects, represent a desired geographic distribution (considering past awards and current applications).
• The degree to which the proposed project supports complementary efforts or projects, which, when taken together, will best achieve the statute’s goals, objectives, and direction.

Applications in this round ofqualification must meet all of the following criteria:

• Applicant is a domestic entity (mandatory) [3]
• Applicant’s protocol and implementation recommendations are vendor-agnostic for implementation-related products and services
• Applicant’s assessments are not limited to one or a small set of technology areas or interventions
• Applicant is willing, if selected for qualification, to provide its assessment protocols and details on calculations when requested, and to interact with, DOE, the Industrial Assessment Centers, and other key program stakeholders to share best practices and ensure quality

Applications in this round of qualification will be evaluated and prioritized using the following criteria:

• The degree to which the assessor demonstrates substantial experience with comprehensive industrial energy assessments [4], either longitudinally (through along-running track record of industrial energy assessments) or as a demonstrably major focus of recent work (e.g., at least 25-50% of assessments provided in the last two years)
• The degree to which assessments are free or demonstrably affordable to small- and medium-sized manufacturers
• The degree to which the assessor incorporates input from key site personnel (e.g.,Plant Manager, Energy Manager, Engineering Personnel) – including gathering pre-assessment data and input – to ensure its assessment is addressing specialized characteristics and challenges of assessed the site
• Whether the assessor executes assessments in person at plant sites, or conducts assessments virtually but with demonstrable equivalent efficacy to that of in-person assessments
• The degree to which the entity’s assessments generate final reporting that captures information and transparent calculations on (1) engineering and financial analysis of implementation costs and benefits, and (2) detailed overviews of plant operation, assessment activities, and identified recommendations

Note: Assessment results, and the associated recommendations, cost estimates, and benefits, should be based upon 1-2 years’ worth of actual utility data (electricity, gas, water, etc.) for the facility being assessed

• The degree to which the assessor demonstrates a commitment to the IAC Program’s dual missions of (1) workforce development and (2) strengthening small- and medium-sized manufacturers, as well as a commitment to community and labor engagement; job quality; diversity, equity, inclusion, and accessibility; and the Justice40 initiative
• The degree to which the assessor’s capabilities, client base, and/or geographic coverage helps extend, or fill important gaps in, the IAC Network’s capacity and reach
• The indicated commitment of the assessor to conducting yearly follow-up surveys to collect implementation data as prescribed by the DOE (e.g., whether implementation occurred, actual implementation costs, realized energy savings, total reduction of GHG emissions, etc.), and to sharing survey results data with the DOE

Qualified third-party assessors are required to meet and maintain the eligibility criteria above and maintain a consistent level of performance on the review criteria above to maintain their qualification as anon-IAC or DOE CHP assessor whose assessments will enable participating SMMs to receive IAC Implementation Grants. DOE retains the prerogative to request renewal evaluations of, or additional information from, third-party assessors to ensure continued eligibility, quality, and IAC equivalence.

[1] To qualify as a domestic entity, the entity must be organized, chartered or incorporated (or otherwise formed) under the laws of a particular state or territory of the United States; have majority domestic ownership and control; and have a physical place of business in theUnited States

[2]Minority owned business is defined as a business of which not less than 51% is owned by one or more individuals who are: (A) citizens of theU.S.; and (B) Asian American, NativeHawaiian, Pacific Islander, African American, Hispanic, Puerto Rican, Native American, or Alaska Native.

[3]To qualify as a domestic entity, the entity must be organized, chartered or incorporated (or otherwise formed) under the laws of a particular state or territory of the United States; have majority domestic ownership and control; and have a physical place of business in theUnited States

[4]“Energy assessments” refer to assessments that are conducted to improve industrial energy efficiency, material efficiency, productivity, or reduce greenhouse gas emissions and non-greenhouse gas pollution.

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