IAC implementation grants for small manufacturers

For over 45 years, Industrial Assessment Centers (IACs) around the country have operated with bipartisan support to assist small and medium-sized manufactures to save energy, improve productivity, and reduce waste by providing no-cost technical assessments—and training the next generation of energy-savvy engineers in the process. 

The Bipartisan Infrastructure Law allocated $400 million to expand the IAC network at community colleges, labor unions, and trade schools, as well as introduce implementation grants to help manufacturers fund the project recommendations included in energy assessments. The $400 million investment reflects the Biden Administration’s distinct and historic investments in climate and commitment to on-shoring manufacturing and bolstering American supply chains.   

The IAC Implementation Grants Program provides grants of up to $300,000 per project at a 50% cost share. For example, if a project costs $100,000, an implementation grant can cover up to $50,000. 

Covered projects include:

• Improvements to site energy or material efficiency 
• Cybersecurity infrastructure
• Reductions to site waste generation and greenhouse gas emissions 
• Non-greenhouse gas pollution

All projects must be related to recommendations in the IAC, Onsite Energy/CHP TAP, or qualified energy assessment report. The grants support a wide variety of projects, including:

• Onsite solar
• Battery storage technology 
• Waste heat recovery system installations
• Improvements for lighting, heating, ventilation, and air conditioning
• Electrifying industrial equipment and fleets 

Note: Other federal funds cannot count towards the applicant’s share. Valid cost share options include internal capital, in-kind contributions, state and local public programs, private loans – including SBA-guaranteed sources, utility programs, leases, and Energy Savings Performance Contracts (ESPCs). 

The IAC implementation grants program can provide up to $300,000 in grant funding (at a 50% cost share) per project to improve energy efficiency, optimize operation productivity, and reduce greenhouse gas emissions based on recommendations from IAC or similar energy assessments. Thanks to a unique funding mechanism, the application process is much shorter and simpler than most traditional federal funding opportunities. 

Eligible applicants include small- to medium-sized manufacturers with: 

• Gross annual sales of less than $100M;
• Annual energy bills between $100,000 - $3,500,000; and
• Fewer than 500 employees at the plant site.

Additional details that may be relevant for your firm: If the manufacturer/facility is an individual LLC that pays separate taxes from the parent company, then the eligibility is based on the LLC.​ Applicants must also first receive an energy assessment from an Industrial Assessment Center, Onsite Energy/Combined Heat and Power Technical Assistance Partnership (TAP) Center, or qualified third-party assessor. 
Note: IAC and Onsite Energy/Combined Heat and Power TAP assessments are free to the manufacturer. Qualified third-party assessments may or may not be free to the manufacturer.

Step 1: Receive an energy assessment from one of three sources: 

• Industrial Assessment Centers. Receive a no-cost comprehensive assessment from one of 37 IACs located at four-year universities around the country. Locate the closest IAC and apply.  
• Onsite Energy Technical Assistance Partnerships (TAPs). Receive a no-cost screening assessment for onsite clean energy technology deployment from one of 10 regional TAPs. Locate the closest Onsite Energy TAP and apply.  
• Third-Party Assessors. Receive an assessment from a third-party assessor qualified as “IAC-equivalent”: 
  • 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 (FlexTech) Assistance Program​ 
  • North Carolina Advanced Energy Corporation​ 
  • Pennsylvania Technical Assistance Program (PennTAP)​ 
  • Utah DEU StepWise Program 

More third-party assessors will be added. DOE cannot guarantee that third-party assessments will be free. 

Step 2: Apply for an IAC implementation grant to help fund assessment project recommendations:  

• Visit the opportunity website for more information, including FAQs, and to apply.  
• Applications are accepted on a rolling basis throughout the year and will be reviewed and awarded quarterly. Applications will remain open until the $400 million in grants is fully spent.