U.S. Energy Department Announces $425 Million to Advance Clean Energy in Former Coal Communities

The U.S. Energy Department on March 8 announced a $425 million funding initiative for the second round of projects under the Advanced Manufacturing and Recycling Grant Program, building upon the success of the first round in 2023. The initial round resulted in $275 million in federal investments distributed across seven selected projects in seven states. The initiative aims to reduce industrial emissions and advance clean energy manufacturing, with a focus on communities affected by coal-related closures. This funding, supported by the 2021 Infrastructure Investment and Jobs Act, and managed by the Office of Manufacturing and Energy Supply Chains, aims to fortify America’s energy security, generate employment opportunities, mitigate climate pollution, and ensure economic prosperity for impacted communities.

The second round of the program will prioritize investment in two areas namely, clean energy manufacturing and recycling and industrial decarbonization projects. Projects must be located in communities affected by coal closures, aligning with Biden’s agenda for industrial revitalization and cleaner energy transition. Projects are to be located in communities where coal mine closures occurred at the end of 1999, or coal-fired power plants closed at the end of 2009. Applicants are required to submit a plan demonstrating the project’s quantifiable impact on workers and the local community, aligning with the department’s commitment to engaging communities and labor, investing in quality jobs, advancing diversity, equity, inclusion, and accessibility, and supporting President Biden’s Justice40 Initiative aimed to ensure that 40 percent of the benefits of certain federal investments flow to disadvantaged communities.

The grant program aids small and medium-sized manufacturers in communities affected by coal mine or coal power plant closures, enabling the construction or retrofitting of facilities to produce or recycle advanced energy products, thus curbing emissions in the manufacturing sector. Eligible firms for this grant program must have gross annual sales below $100 million, fewer than 500 employees at the plant site, and annual energy bills ranging from $1 million to $2.5 million.

Concept papers, a mandatory requirement for the funding opportunity, must be submitted by April 8 and full application is due on June 24.