Energy Department announces $250 million for clean energy heat pumps

The Energy Department is making available $250 million in grant money to "accelerate" heat pump manufacturing in the U.S.

The agency in making the announcement Tuesday said the money comes from 2020, multi-billion-dollar Inflation Reduction Act – intended in large part to reduce carbon emissions by roughly 40% by 2030.

The agency also said the announcement is the first in the agency's new authority to utilize the Defense Production Act to produce clean energy technology, as authorized last year by President Biden.

"Increased use of electric heat pumps, for heating and cooling, will help lower energy costs for more American families and businesses," the agency said in making the announcement.

Manufacturers have until Aug. 1 to apply for the money.

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