Energy funding in the Infrastructure Investment and Jobs Act

The Infrastructure Investment and Jobs Act builds on the Energy Act of 2020 and provides $62 billion for the Department of Energy to accelerate a ground-breaking energy innovation push. The vast majority of these funds are directed to existing programmatic offices to expand research, development, and demonstration of key innovative technologies.

In addition to energy innovation, the bill makes significant investments into preserving existing clean energy electricity generation, grid modernization, the clean energy supply chain, and energy efficiency.

Top Resources

Below is a list of specific agency announcements pertaining to implementation of the Energy Act of 2020 and the Bipartisan Infrastructure Law.

• DOE Launches $140 Million Program to Develop America’s First-of-a-Kind Critical Minerals Refinery
• RFI on Clean Hydrogen Manufacturing, Recycling, and Electrolysis
• RFI on Clean Hydrogen Hubs ($8 billion available)
• NOI/RFI on Establishment of Civilian Nuclear Credit Program ($6 billion available)
• RFI on Industrial Sector Decarbonization Pathways
• FOA on EV Battery Recycling and Second Life Applications ($60 million for RD&D)
• FOA on EV Battery Processing and Manufacturing ($2 billion available)
• Multiple announcements regarding National Electric Vehicle Infrastructure (NEVI) program ($5B for EV charging)
• The Department of Energy (DOE) has outlined the energy innovation components of the Infrastructure Investment and Jobs Act.
• DOE announces the establishment of the Office of Clean Energy Demonstrations.
• DOE kicks off recruitment of “Clean Energy Corps” to support implementation of infrastructure bill.
• DOE launches the “Building a Better Grid” Initiativeto upgrade the nation’s aging electric grid while supporting more sustainable energy, cleaner air, and good paying jobs.
• Interior Department releases memo on orphaned well site plugging, remediation, and restoration activities.
• Department of Interior submitted its FY 2022 IIJA implementation plan to Congress, which covers the roughly $30B in funding Congress provided for programs like Orphan Wells, wild fires, and water/drought resilience to name a few.

Key Takeaways

Clean Energy Demonstrations

• $21.5 billion to DOE for clean energy demonstrations and research hubs.
• $750 million for new grant program to support energy manufacturing projects in coal communities.
• $7 billion in grants/prizes for the supply chain for batteries.
• $1.5 billion for clean hydrogen manufacturing and advancing recycling RD&D.
• Expand the authority of DOE’s Loan Program Office (LPO) to invest in clean energy projects.
• $6 billion in tax credits for existing nuclear plants and $700 for existing hydropower facilities.

Existing Emissions-free Electricity

• $6 billion in tax credits to prevent premature retirement of existing zero-carbon nuclear plants.
• More than $700 million in existing hydropower facilities to improve efficiency, maintain dam safety.

Grid Modernization

• $11 billion in DOE grants to enhance resilience of electric infrastructure against disruptive events.
• $2.5 billion Transmission Facilitation Program for DOE to help develop nationally significant transmission lines.
• $3 billion in matching grants through the Smart Grid Investment Matching Grant Program.

Clean Energy Supply Chain

• Invest more than $7 billion in the supply chain for batteries. This will include producing critical minerals, sourcing materials for manufacturing, and even recycling critical materials without new extraction/mining. 
• Provide an additional $1.5 billion for clean hydrogen manufacturing and advancing recycling RD&D.
• Create a new $750 million grant program to support advanced energy technology manufacturing projects in coal communities.
• Expand the authority of DOE’s Loan Program Office (LPO) to invest in projects that increase the domestic supply of critical minerals and expand LPO programs that invest in manufacturing zero-carbon technologies for medium- and heavy-duty vehicles, trains, aircraft, and marine transportation.

Orphan Wells and Abandoned Mines

• $4.7 billion to plug, remediate, and reclaim orphaned wells.
• $11.3 billion for the Abandoned Mine Land Reclamation Fund.

Energy Efficiency

• $3.5 billion in Weatherization Assistance Program
• $500 million in grants for energy efficiency and renewable energy improvements at public schools
• $5 billion EPA effort to replace diesel school buses with electric buses
• $550 million in Energy Efficiency and Conservation Block Grant Program (EECBG) and $500 million for State Energy Program grants

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