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

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 per funding round, 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 provides grants funded by section 40521 of the Bipartisan Infrastructure Law, 42 USC 17116, to small and medium-sized manufacturers (SMMs) to implement recommendations made in IAC and Combined Heat and Power Technical Assistance Partnership (CHP TAP) assessments since 2018, and in recommendations made in equivalent 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 Justice40 initiative 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.

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The following third-party assessors have been qualified as IAC-equivalent (SMMs can now apply for IAC grant funding for recommended projects in these entities’ energy assessments since 2021):

• Alternative Energy Systems Consulting, Inc.
• Cascade Energy
• CLEAResult
• Cunningham Engineering PC
• Energy 350
• Energy Consulting | Base Energy Inc.
• eSai LLC
• Frontier Energy, Inc.
• GENEDGE Alliance
• Go Sustainable Energy, LLC
• Lincus, Inc
• Michaels Energy
• New York State Energy Research and Development Authority: Flexible Technical (FlexTech) Assistance Program
• North Carolina Advanced Energy Corporation
• QGM Consulting
• Pennsylvania Technical Assistance Program (PennTAP)
• Rutgers Center for Advanced Energy Systems
• TRC | Consulting, Engineering, Construction Management
• Utah DEU StepWise Program

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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 July 1, 2024.  The subsequent review dates are October 1, 2024, and January 10, 2025. 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.

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Workstream 1: Implementation Grants

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

Note: For entities who have received IAC energy assessments with additional assessment recommendations (AARs): The DOE and ENERGYWERX can help you obtain further cost and energy savings calculations for those AARs so that you can apply for funding to implement them through the IACImplementation Grant Program.

NEW:

Eligible SMMs can now receive $300,000 of grant funding per funding round, rather than per entity. Eligible SMMs that have already received $300,000 in past funding rounds are eligible to apply for additional grant funding to implement eligible new projects. (Note: for SMMs who apply for an award that puts them over $300,000 of total grant funding, the new application must focus solely on assessment recommendations that have not been the focus in previous awards.)

Additionally, the program will require a minimum grant funding request threshold of $5,000, or in other words, a minimum of $10,000 in total project costs. This minimum threshold aims to focus this program's resources on helping manufacturers implement larger capital projects that are less likely to be feasible without the federal funding.

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

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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The current quarterly submission deadline is July 1, 2024. DOE will host virtual Office Hours to answer any questions from potential applicants before the next quarterly submission deadline. We expect the next round to open early in April 2024. View the dates below and click the links to RSVP.

• April 15, 2024 from 1:00-2:00 PM ET: COMPLETED
• May 14, 2024 from 1:00-2:00 PM ET: CLICK HERE TO RSVP
• June 13, 2024 from 1:00-2:00 PM ET: CLICK HERE TO RSVP

Submissions are due NLT July 1, 2024 by 3:00 PM ET

Workstream 1 Timeline (Estimated)

• Applications Open: April 1, 2024
• Office Hours Sessions:
  - April 15, 2024 from 1:00-2:00 PM ET
  - May 14,2024 from 1:00-2:00 PM ET
  -June 13,2024 from 1:00-2:00 PM ET
• Application Deadline: July 1, 2024 NLT 3:00 PM ET [Click Here to Submit]
• Review and Selection: Summer 2024
• Awarding and Implementation: Selected SMMs will finalize awards with ENERGYWERX and begin implementation

Workstream 2 Timeline (Estimated)

• Applications Open: April 1, 2024
• Office Hours Sessions:
  - April 15, 2024 from 1:00-2:00 PM ET
  - May 14,2024 from 1:00-2:00 PM ET
  -June 13,2024 from 1:00-2:00 PM ET‍
• Application Deadline: July 1, 2024 NLT 3:00 PM ET [Click Here to Submit]
• Review and Selection: Summer 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.

Workstream 1

Complete the Submission Form: Click Here to Submit (Submissions are due NLT July 1, 2024 at 3:00 PM ET)

Workstream 2

Complete the Submission Form: Click Here to Submit (Submissions are due NLT July 1, 2024 at 3:00 PM ET)

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

1. Applicant is a domestic entity. [1]

2. 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.

• ‍Eligible applicants may fall under the following NAICs Codes
  - NAICS Code: 31-33 (Manufacturing)
  - NAICS Code: 1114 (Controlled Environment Agriculture)
  - NAICS Code: 22131-22132 (Water Supply Systems and Sewage Treatment Facilities)

3. 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).

4. 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).

5. 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).

6. All proposed projects address recommendation(s) made in an IAC or CHP/Onsite Energy TAP assessment conducted since January 1, 2018, or another qualified assessment since January 1, 2021.

7. No proposed project efforts already have been implemented.

8. Minimum total project(s) implementation cost of $10,000.

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

‍Impact and Feasibility (50%)

1. The degree to which the proposed project(s) has the potential to improve the assessed plant site’s energy efficiency and productivity.

2. 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).

3. 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.

4. 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 Cost Share (25%)

5. The degree to which the applicant demonstrates the need for financial assistance to implement the proposed project, considering available funding sources, upfront costs, and estimated payback period.

6. Whether the grant will supplement, not supplant, any private or State funds available to the eligible entity to carry out the covered project.

7. 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%)

8. 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 Initiativeand Council on Environmental Quality’s Climate and Economic Justice Screening Tool, or (2) an energy community.

9. Whether the applicant is a Minority Owned Business [2], Woman Owned Business, Veteran Owned Business, or Small Business Administration-qualified HUBZone business or Section 8(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).

10. 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 the United 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.

[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 the United 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 the U.S.; and (B) Asian American, Native Hawaiian, Pacific Islander, African American, Hispanic, Puerto Rican, Native American, or Alaska Native.  

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

1. Applicant is a domestic entity (mandatory) [3]
2. Applicant’s protocol and implementation recommendations are vendor-agnostic for implementation-related products and services.
3. Applicant's assessments are not limited to one or a small set of technology areas or interventions.
4. 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:‍

1. The degree to which the assessor demonstrates substantial experience with comprehensive industrial energy assessments [4], either longitudinally (through a long-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).

2. The degree to which assessments are free or demonstrably affordable to small- and medium-sized manufacturers.

3. 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.

4. 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.

5. 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.
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‍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

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6. The degree to which the assessor demonstrates a commitment to the IACProgram’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.

7. 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.

8. 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.

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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 ImplementationGrants. DOE retains the prerogative to request renewal evaluations of, or additional information from, third-party assessors to ensure continued eligibility, quality, and IAC equivalence.

[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 the United 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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Click HERE to review frequently asked questions (FAQs).

If you have any additional questions, please contact ENERGYWERX: info@energywerx.org