Up to $300,000 grant for manufacturers: are you eligible?

By Denise Cappis, Director Business Operations, CLA

In late 2023, the U.S. Department of Energy (DOE) announced a new energy savings grant offering up to $300,000 for eligible small- and medium-sized manufacturers. This opportunity will provide a combined total of up to $5.2 million for the first round of grant awards.

Understanding the Industrial Assessment Centers (IAC) Implementation Grants

The Industrial Assessment Centers (IAC) Implementation Grant Awards are aimed at small- and medium-sized manufacturers throughout the U.S. This program’s goal is to ultimately save energy and reduce greenhouse gas emissions for facilities. The IAC Implementation Grants program provides incentives for manufacturers to implement recommendations made by DOE and other qualified energy assessments.  The deadline to apply for the next quarterly review cycle is December 31, 2023.

Who is eligible?

Businesses looking to take advantage of the up to $300,000 grant must adhere to the following criteria:

1. Location: the applicant is a domestic entity.
2. Business type: the applicant is a manufacturer. More specifically it must be an entity that engages in the mechanical, physical, or chemical transformation of materials, substances, or components. It may also be a water/wastewater treatment facility.
3. Annual sales: the 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. Energy bills: the applicant’s 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. Total employees: there were fewer than 500 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. Project recommendations: 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.
7. Project status: proposed project efforts may not have been implemented to date.

You’re asking, we’re answering.

CLA’s team of professionals has weighed in to help clarify common eligibility questions. If you have other questions, don’t hesitate to schedule a consultation today. This Q&A is based on our current understanding. Rules, of course, are subject to change.

Do I need to meet all the eligibility requirements?

Yes, you must meet all elements listed above to qualify for this program.

Is funding available for recommendations that are already implemented?

No, grant funding is only available for project recommendations from qualified assessments that have not yet been implemented.

My facility is an individual LLC under a larger parent company – what is eligibility based on?

Eligibility is based on how the applicant pays taxes. If the LLC pays separate taxes from the parent company, then eligibility is based on the LLC. If they do not pay separate taxes, then eligibility is based on the parent company.  

Which employment statuses should be included in the total employee count per manufacturing site?

Full-time, part-time, and temporary employees are included in the total.

Are any of the eligibility criteria specific to the entire business entity vs the plant site?

According to the Bipartisan Infrastructure Law, codified at 42 U.S.C. 17116(a)(6), the annual sales and annual energy bills criteria pertain to the business entity, not just to the manufacturing site. The total employee limit, however, pertains only to the manufacturing site.

Have more questions?

As technology continues to benefit manufacturing, businesses that consistently upgrade their facilities and processes will be better positioned for the future. Not sure if you’re a fit for the IAC Implementation Grant? Contact us, we can help.