Biden Invokes Wartime Powers To Fund Electric Heat Pumps

The Biden Administration has invoked the 1950 Defense Production Act (DPA) to expedite funding toward increasing the domestic production of heat pumps. The Administration cited the use of these wartime powers in order to meet the emergency crisis confronting the nation due to climate change. The release of $169 million will be directed to proposed manufacturers of heat pumps in 13 states. A York International facility in Waynesboro, Pennsylvania is included on the list.

“Getting more American-made electric heat pumps on the market will help families and businesses save money with efficient heating and cooling technology,” said U.S. Secretary of Energy Jennifer M. Granholm. “Thanks to President Biden’s Investing in America agenda, these investments will create thousands of high-quality, good-paying manufacturing jobs and strengthen America’s energy supply chain, while creating healthier indoor spaces through home-grown clean energy technologies.”

The DOE goes on further to say:

Heating and cooling buildings, homes, offices, schools, hospitals, military bases, and other critical facilities drive more than 35% of all U.S. energy consumption. Heat pumps efficiently provides comfortable temperatures for heating and cooling homes and businesses in all climates, especially when homes are well insulated, and can also provide more efficient water heating. When compared to gas boilers, heat pumps reduce greenhouse gas emissions by up to 50%. Electric heat pumps enable more American families and businesses to benefit from lower energy costs through American-made clean energy technologies, while supporting good jobs, reinvigorating American manufacturing, improving public health, tackling climate change. Additional savings are currently available through IRA Energy Efficient Tax Credit 25C tax credits to help consumers afford heat pumps.