Defense Production Act Title III

The Inflation Reduction Act of 2022 provided $250 million to accelerate heat pump manufacturing through the Defense Production Act (DPA), including industrial heat pumps. The investment seeks to reduce the nation’s reliance on fossil fuels, improve efficiency, lower consumer energy costs, strengthen national defense and energy security, and mitigate the climate crisis. The Department of Energy has the authority to utilize the DPA, for which they issued a request for information in October of 2022. Though half of the funding is allocated for heat pumps (and industrial heat pumps), another $250 million was allocated to accelerating the domestic production of solar, transformers and electric grid components, insulation, electrolyzers, and fuel cells.