Biden administration bolsters energy-efficient manufacturing using wartime authority

The Biden administration is doling out a second round of funding for energy efficient heating systems, again using its wartime authority in the fight against climate change.

The Department of Energy is putting $85 million to accelerate the production of heat pumps under the Defense Production Act, it first told The Hill.

Heat pumps are a more energy efficient alternative to air conditioners and furnaces. They work by transferring heat instead of generating it — moving heat from outside indoors during the winter and moving heat from inside during the summer.

The funds will go to five facilities in New York, Tennessee, Texas and Rhode Island. The administration said the move is expected to create more than 500 jobs, nearly half of which will be in disadvantaged communities.

The Defense Production Act gives the president the authority to mobilize a certain industry to advance national security.

A spokesperson for the Energy Department said the Democrats’ 2022 climate, tax and health care bill gave the department $500 million for use under the law, which the $85 million comes from.

“As communities across the country continue to face down the impacts of climate-fueled extreme weather events, investing in American-made heat pump manufacturing will help keep families safe and comfortable in their homes, schools, and businesses and cut their energy cost,” said White House National Climate adviser Ali Zaidi in a statement.

“Today’s investments, levering the authorities in the Defense Production Act, harness the power of American innovation to jumpstart critical clean energy manufacturing capacity and to protect our families, our economy, and our planet.”

The investments are expected to enable the manufacture of an additional 155,000 residential heat pumps, 440,000 residential water heaters, 2,000 school heat pumps, 120 industrial water heaters and 20,000 additional heat pump components.

The money announced Wednesday will go to facilities owned by: Daikin Comfort Technologies North America Inc., A. O. Smith, Modine Manufacturing Company and BITZER Scroll Inc.

The funds are in addition to an additional $169 million that bolstered heat pump manufacturing under the Defense Production Act last year.