Bulletin No. 2023–25

HIGHLIGHTS

OF THIS ISSUE





Bulletin No. 2023–25

June 20, 2023

These synopses are intended only as aids to the reader in

identifying the subject matter covered. They may not be

relied upon as authoritative interpretations.

EMPLOYEE PLANS

Notice 2023-44, page 924.

This notice updates the version of Appendix A (defining

qualifying advance energy projects) with clearer definitions

and examples and updates the earlier version of Appendix

B (providing the Department of Energy (DOE) application

process) published in Notice 2023-18, 2023-10 I.R.B. 508.

This notice also provides the process for submitting concept

papers and joint applications for DOE recommendations and

for IRS § 48C(e) certifications and clarifies the selection

Finding Lists begin on page ii.

criteria used to evaluate whether a project merits a DOE

recommendation. This notice defines the term “facility” for

pur­poses of sections 45X and 48C, provides the procedure

for informing DOE and the Internal Revenue Service (IRS) of

a significant change to the project plan, includes information

regarding the disclosure of certain information, and clarifies

that eligible property that is placed in service before being

awarded an allocation of section § 48C credits is ineligible

for the § 48C(e) program. Finally, the guidance provides

information regarding § 48C(e) energy communities census

tracts, including new Appendix C, which contains a list of

those census tracts.

The IRS Mission

Provide America’s taxpayers top-quality service by helping

them understand and meet their tax responsibilities and

enforce the law with integrity and fairness to all.

Introduction

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of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service

and for publishing Treasury Decisions, Executive Orders, Tax

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of the tax laws, including all rulings that supersede, revoke,

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internal practices and procedures that affect the rights and

duties of taxpayers are published.

Revenue rulings represent the conclusions of the Service

on the application of the law to the pivotal facts stated in

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identifying details and information of a confidential nature are

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Rulings and procedures reported in the Bulletin do not have the

force and effect of Treasury Department Regulations, but they

may be used as precedents. Unpublished rulings will not be

relied on, used, or cited as precedents by Service personnel in

the disposition of other cases. In applying published rulings and

procedures, the effect of subsequent legislation, regulations,

court decisions, rulings, and procedures must be considered,

and Service personnel and others concerned are cautioned

against reaching the same conclusions in other cases unless

the facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code.

This part includes rulings and decisions based on provisions

of the Internal Revenue Code of 1986.

Part II.—Treaties and Tax Legislation.

This part is divided into two subparts as follows: Subpart A,

Tax Conventions and Other Related Items, and Subpart B,

Legislation and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.

To the extent practicable, pertinent cross references to these

subjects are contained in the other Parts and Subparts. Also

included in this part are Bank Secrecy Act Administrative

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by the Department of the Treasury’s Office of the Assistant

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The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

June 20, 2023 

Bulletin No. 2023–25

Part III

Additional Guidance for

the Qualifying Advanced

Energy Project Credit

Allocation Program under

Section 48C(e)

Notice 2023-44

SECTION 1. PURPOSE

.01 This notice provides additional

guidance to clarify and modify Notice

2023-18, 2023-10 I.R.B. 508, which

established the program under § 48C(e)

(1) of the Internal Revenue Code (Code)1

to allocate $10 billion of credits ($4 billion of which may be allocated only

to projects located in § 48C(e) Energy

Communities Census Tracts2) for qualified investments in eligible qualifying

advanced energy projects (§ 48C(e) program). The Department of the Treasury

(Treasury Department) and the Internal

Revenue Service (IRS) released Notice

2023-18 on February 13, 2023, to establish the § 48C(e) program and to provide

initial program guidance.

.02 The additional guidance contained

in this notice provides general guidance

for the § 48C(e) program, including (1)

definitions of the term “facility” for purposes of §§ 48C and 45X, (2) clarification

regarding projects placed in service prior

to being awarded an allocation of qualifying advanced energy project credits (§ 48C

credits), (3) the process for submitting

concept papers and joint applications for

Department of Energy (DOE) recommendations and for IRS § 48C(e) certifications

(§ 48C(e) applications), (4) information

regarding § 48C(e) Energy Communities

Census Tracts, (5) the selection criteria

used to evaluate whether a project merits a

DOE recommendation, (6) the procedure

for informing the IRS and the DOE of a

significant change in plans for a project

that has received an allocation of § 48C

credits, and (7) the disclosure of certain information. In addition, this notice

1

2

provides information regarding when the

DOE eXCHANGE portal, an online application portal available at https://48C-exchange.energy.gov/ (or any successor

interface) and referred to in this notice and

its appendices as the “eXCHANGE portal,” will begin accepting concept papers

and the timeline for submitting a § 48C(e)

application.

.03 This notice republishes Appendices

A and B included in Notice 2023-18 with

certain modifications. Appendix A is modified to provide minor clarifications to

definitions and examples. Appendix B is

modified to provide technical review criteria, and application content requirements.

This notice also includes a new Appendix

C that provides a list of § 48C(e) Energy

Communities Census Tracts.

.04 As stated in section 1.03 of Notice

2023-18, the Treasury Department and

the IRS anticipate providing at least two

allocation rounds under the § 48C(e)

program. For the first allocation round

(Round 1) of the § 48C(e) program,

the Treasury Department and the IRS

anticipate allocating up to $4 billion of

§ 48C credits with approximately $1.6

billion in § 48C credits to be allocated

to projects located in § 48C(e) Energy

Communities Census Tracts. Although

the Treasury Department and the IRS

intend to allocate a total of $10 billion of

§ 48C credits with not less than $4 billion of § 48C credits to projects located

in § 48C(e) Energy Communities Census

Tracts over the duration of the § 48C(e)

program, depending upon applications

received, the Treasury Department and

the IRS may not allocate exactly 40

percent of the total § 48C credits allocated in Round 1 to projects located in

§ 48C(e) Energy Communities Census

Tracts. To be considered for an allocation

of § 48C credits in the § 48C(e) program

for Round 1, taxpayers must first submit

concept papers to the IRS through the

eXCHANGE portal. Following submission of a concept paper, DOE will provide a letter encouraging or discouraging

the taxpayer’s submission of a § 48C(e)

application. DOE begins the acceptance

process for a taxpayer’s § 48C(e) application 7 days after the date of the letter

of encouragement or discouragement. To

be considered for the § 48C(e) program,

a taxpayer’s § 48C(e) application must

be submitted no later than 45 days after

DOE begins the acceptance process for

the taxpayer’s § 48C(e) application. The

IRS will make all Round 1 allocation

decisions by March 31, 2024.

SECTION 2. BACKGROUND

.01 For purposes of the § 38 general

business credit, § 46 provides that the

amount of the investment credit for any

taxable year is the sum of the credits

listed in § 46. That list includes the § 48C

credit, which was originally enacted by

§ 1302(b) of the American Recovery and

Reinvestment Act of 2009 (2009 Act),

Public Law 111-5, Division B, Title I,

Subtitle D, 123 Stat. 115, 345 (February

17, 2009), to provide an allocated credit

for qualified investments in qualifying

advanced energy projects.

.02 In addition to certain amendments

made by the Tax Increase Prevention

Act of 2014, Public Law 113-295, 128

Stat. 4010 (December 19, 2014), § 48C

was amended most recently by § 13501

of Public Law 117-169, 136 Stat. 1818

(August 16, 2022), commonly known

as the Inflation Reduction Act of 2022

(IRA). Section 13501(a) of the IRA

added § 48C(e) to the Code to extend the

§ 48C credit and to provide an additional

credit allocation of $10 billion. Section

13501(b) of the IRA modified the definition of a “qualifying advanced energy

project” contained in § 48C(c)(1)(A).

Section 13501(c) and (d) of the IRA made

conforming amendments to § 48C(c)(2)

(A) and (f). The amendments made by

§ 13501 of the IRA became effective on

January 1, 2023. See § 13501(e) of the

IRA.

.03 Notice 2023-18 established the

§ 48C(e) program and provided initial

program guidance. Section 3 of Notice

Unless otherwise specified, all “section” or “§” references are to sections of the Code.

The term “§ 48C(e) Energy Communities Census Tracts” is defined in section 5.06 of Notice 2023-18.

June 20, 2023

924

Bulletin No. 2023–25

2023-18 provided definitions for purposes of the § 48C(e) program of the

following terms: “qualifying advanced

energy project,” “specified advanced

energy property,” “eligible property,”

“placed in service,” “industrial facility,”

“manufacturing facility,” and “recycling

facility.” Section 4 of Notice 2023-18

described how the prevailing wage and

apprenticeship requirements that apply

under § 48C(e)(5) and (6) impact the

rate of § 48C credits allocated under the

§ 48C(e) program. Section 5 of Notice

2023-18 provided a general description

of the § 48C(e) program and section 6 of

Notice 2023-18 provided initial information regarding the procedures for concept

papers and § 48C(e) applications.

.04 Section 5 of Notice 2023-18 states

that the IRS will consider a project under

the § 48C(e) program only if DOE provides a recommendation and ranking to

the IRS. As stated in section 5 of Notice

2023-18, DOE will provide a recommendation only if it determines that the

project has a reasonable expectation of

commercial viability and merits a recommendation based on the criteria provided

in additional § 48C(e) program guidance

intended to be issued by May 31, 2023.

This guidance comprises the additional

§ 48C(e) program guidance referred to in

Notice 2023-18.

SECTION 3. SECTION 48C AND

SECTION 45X FACILITIES

.01 Section 48C Facility. For purposes of § 48C, a “facility” is the eligible property that makes up the qualified

investment that is part of the qualifying

advanced energy project (§ 48C Facility).

Section 48C(c)(2) defines the term “eligible property” to mean any property that—

(1) Is necessary for the production

or recycling of property described in

§ 48C(c)(1)(A)(i), re-equipping an industrial or manufacturing facility described

in § 48C(c)(1)(A)(ii), or re-equipping,

expanding, or establishing an industrial

facility described in § 48C(c)(1)(A)(iii),

(2) Is tangible personal property, or

other tangible property (not including a

building or its structural components), but

only if such property is used as an integral part of the qualified investment credit

facility, and

Bulletin No. 2023–25

(3) With respect to which depreciation

(or amortization in lieu of depreciation) is

allowable.

.02 Section 45X Facility. For purposes

of the § 38 general business credit, the

advanced manufacturing production credit

determined under § 45X(a) (§ 45X credit)

for any taxable year is an amount equal to

the sum of the credit amounts determined

under § 45X(b) with respect to each eligible component (as defined in § 45X(c)(1))

that is produced by a taxpayer and, during

the taxable year, sold by the taxpayer to

an unrelated person. Section 45X(c)(1)(B)

provides that the term “eligible component” does not include any property which

is produced at a facility if the basis of any

property which is part of such facility is

taken into account for purposes of the

credit allowed under § 48C after August

16, 2022 (the date of enactment of the

IRA). For purposes of the § 45X credit, all

tangible property that comprises an independently functioning production unit that

produces one or more eligible components

will be treated as a single facility (§ 45X

Facility). The Treasury Department and

the IRS intend to further define the term

“production unit” for purposes of the

§ 45X credit in forthcoming guidance

addressing various § 45X issues.

.03 Interaction between Sections 48C

and 45X. For purposes of evaluating the

interaction between §§ 48C and 45X, the

eligible component is defined as provided

in § 45X(c)(1). A § 45X Facility cannot

produce an eligible component for purposes of the § 45X credit if such facility

includes eligible property that has been

taken into account for purposes of the

credit allowed under § 48C after August

16, 2022.

.04 Example. Taxpayer owns and operates a manufacturing site that contains

Production Unit A and Production Unit B.

Production Unit A manufactures photovoltaic wafers and Production Unit B manufactures photovoltaic cells. Production

Unit A and Production Unit B are arranged

in serial fashion, in that the wafer produced by Production Unit A is utilized in

Production Unit B. Production Unit A and

Production Unit B function independently

and produce eligible components.

Taxpayer was allocated a § 48C credit for

Production Unit A under the § 48C(e) program and subsequently placed it in service

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in taxable year 2024. Production Unit A is

eligible property that is part of Taxpayer’s

§ 48C Facility and Taxpayer claimed a

§ 48C credit for Production Unit A in

taxable year 2024. Therefore, Production

Unit A fails to qualify as § 45X Facility

under § 45X(c)(1)(B). Production Unit B

is tangible property that comprises an independently functioning production unit that

produces eligible components. Production

Unit B can be treated as a § 45X Facility

because the tangible property comprising

Production Unit B is not eligible property

that is part of a § 48C Facility.

SECTION 4. PLACED IN SERVICE

REQUIREMENT

.01 In General. Eligible property (as

defined in § 48C(c)(2)) is placed in service

for purposes of the § 48C(e) program in

the earlier of the following taxable years:

(1) The taxable year in which, under

the taxpayer’s depreciation practice, the

period for depreciation with respect to

such eligible property begins; or

(2) The taxable year in which the eligible property is placed in a condition or

state of readiness and availability for a

specifically assigned function, whether in

a trade or business or in the production of

income.

.02 No Section 48C(e) Allocation if

Placed in Service Prior to Allocation

Award. Eligible property placed in service prior to being awarded an allocation

of § 48C credits under the § 48C(e) program is not eligible to receive such an

allocation.

SECTION 5. CONCEPT PAPERS

AND § 48C(e) APPLICATIONS

.01 In General. For each project for

which a taxpayer seeks a § 48C(e) allocation for Round 1, the taxpayer must use

the eXCHANGE portal to submit to the

IRS (1) a concept paper for DOE consideration and (2) the § 48C(e) application.

If a § 48C(e) application does not (1) propose a qualifying advanced energy project (as described in Appendix A) or (2)

include all of the information required in

Notice 2023-18 and this notice (including

the additional § 48C(e) program guidance

contained in the appendices), DOE may

either decline to consider the § 48C(e)

June 20, 2023

application or request that the applicant

resubmit its § 48C(e) application with

the missing information. If DOE does not

provide a recommendation to the IRS on

the § 48C(e) application, the IRS will not

consider the § 48C(e) application.

.02 Taxpayer submissions. Notice

2023-18 requires taxpayers to submit

their concept papers and § 48C(e) applications through the eXCHANGE portal. See

Appendix B for additional information

regarding the application process.

.03 Program Timeline. Generally, the

§ 48C(e) program will proceed as follows:

(1) A taxpayer submits a concept paper

through the eXCHANGE portal. The

eXCHANGE portal will open no later

than June 30, 2023. Taxpayers must submit concept papers prior to 12:00 PM

(noon) Eastern Time on July 31, 2023.

(2) DOE reviews the concept paper

and sends the taxpayer a letter encouraging or discouraging the submission of

a § 48C(e) application. After receiving a

letter of encouragement or discouragement from DOE, the taxpayer determines

whether to submit a § 48C(e) application.

All taxpayers who submit concept papers

are eligible to submit a § 48C(e) application, regardless of DOE’s response to its

concept paper.

(3) Taxpayers submit § 48C(e) applications through the eXCHANGE portal. See

Appendix B for additional information.

(4) DOE reviews the § 48C(e) applications for compliance with eligibility and

other threshold requirements.

(5) If the § 48C(e) application complies with all eligibility and threshold

requirements, DOE conducts a technical

review of the application to form a DOE

recommendation.

(6) DOE provides a recommendation

to the IRS regarding the acceptance or

rejection of each § 48C(e) application and

a ranking of all § 48C(e) applications.

(7) The IRS makes a decision regarding the acceptance or rejection of each

§ 48C(e) application based on DOE’s

recommendation and ranking. The IRS

notifies each taxpayer that submitted a

§ 48C(e) application of the outcome by

sending a letter allocating § 48C credits

in the case of an acceptance (Allocation

Letter) or letter denying the requested

allocation in the case of a rejection (Denial

Letter). The IRS will make all Round 1

June 20, 2023

allocation decisions by March 31, 2024.

In the case of an acceptance, the amount

of § 48C credits allocated to a project

will be based on the taxpayer’s qualified

investment in the qualifying advanced

energy project and whether the taxpayer

intends to apply for and receive an allocation of § 48C credits calculated at the

30 percent credit rate (see Notice 2023-18,

section 5.07). In the case of a denial, a taxpayer may request a debriefing with DOE

regarding its review of the taxpayer’s

§ 48C(e) application. The Denial Letter

will include instructions for requesting a

DOE debriefing.

(8) To be eligible to claim a § 48C credit

allocated under the § 48C(e) program with

respect to a taxpayer’s § 48C Facility, the

earliest that the taxpayer may place in service the § 48C Facility is after receiving

the Allocation Letter with respect to that

§ 48C Facility. See section 4 of this notice.

(9) Within 2 years of receiving an

Allocation Letter, a taxpayer must notify

DOE that the certification requirements

have been met by submitting this information through the eXCHANGE portal. See

Appendix B for additional information.

(10) DOE notifies the taxpayer and

the IRS that it has received the taxpayer’s

notification that the certification requirements have been met.

(11) The IRS certifies the § 48C Facility

by sending a letter (Certification Letter).

(12) Within 2 years of receiving the

Certification Letter, the taxpayer notifies

DOE that the § 48C Facility has been

placed in service by submitting such

information through the eXCHANGE

portal. See Appendix B for additional

information. If the taxpayer has not placed

the § 48C Facility in service within the

required 2-year period or has not notified DOE that the § 48C Facility has

been placed in service within the required

2-year period, then the § 48C credit allocated to the taxpayer’s project is forfeited.

(13) DOE notifies the taxpayer and

the IRS that it has received the taxpayer’s notification that the § 48C Facility

has been placed in service or notification

that the taxpayer will not place the § 48C

Facility in service within the required

2-year period. See Section 5.09 of Notice

2023-18.

(14) If the taxpayer has placed the

§ 48C Facility in service within the

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required 2-year period and has notified

DOE, then the taxpayer claims the § 48C

credit on its Federal income tax return

for the taxable year in which the § 48C

Facility was placed in service.

(15) If the taxpayer chooses to withdraw a submission at any phase of the

§ 48C(e) program (whether at the concept paper phase, the § 48C(e) application phase, the post-Allocation Letter

phase, or the post-Certification Letter

phase), the taxpayer must provide a formal withdrawal notification through the

eXCHANGE portal.

SECTION 6. SECTION 48C ENERGY

COMMUNITIES CENSUS TRACTS

.01 In General. Section 48C(e)(2)

provides that the total amount of § 48C

credits which may be allocated under the

§ 48C(e) program may not exceed $10

billion (National § 48C(e) Limitation),

of which not greater than $6 billion may

be allocated to qualified investments that

are not located within § 48C(e) Energy

Communities Census Tracts. This notice

refers to the aggregate amount of § 48C

credits that will be allocated to § 48C(e)

Energy Communities Census Tracts from

the National § 48C(e) Limitation as the

§ 48C(e) Energy Community Allocation.

.02 Timing. The determination of

whether a project is located in a § 48C(e)

Energy Communities Census Tract will be

made at the time that DOE provides recommendations to the IRS and will not be

redetermined.

.03 Location. A § 48C Facility is

treated as located within a § 48C(e)

Energy Communities Census Tract, if the

§ 48C Facility satisfies the square footage test (Footprint Test). The Footprint

Test provides that a § 48C Facility is

considered located within a § 48C(e)

Energy Communities Census Tract if

50 percent or more of its square footage

is in an area that qualifies as a § 48C(e)

Energy Communities Census Tract. This

percentage is determined by dividing the

square footage of the § 48C Facility that is

located in a § 48C(e) Energy Communities

Census Tract by the total square footage of

the § 48C Facility.

.04 Resources to Determine Whether

a § 48C Facility is Located Within a

§ 48C(e) Energy Communities Census

Bulletin No. 2023–25

Tract. A taxpayer can determine whether

its project is located within a § 48C(e)

Energy Communities Census Tract by

referring to the list of Section 48C(e)

Energy Communities Census Tracts provided by Appendix C. Additionally, a

map of § 48C(e) Energy Communities

Census Tracts has been provided by the

DOE and is available at www.energy.gov/

infrastructure/48C.

SECTION 7. SELECTION CRITERIA

.01 In General. Section 48C(d)(3)

lists the selection criteria used to determine which qualifying advanced energy

projects merit a DOE recommendation.

Section 48C(d)(3)(A) provides that in

determining which qualifying advanced

energy projects to certify under this section the Secretary of the Treasury or her

delegate (Secretary) is to take into consideration only those projects where there is

a reasonable expectation of commercial

viability. Further, § 48C(d)(3)(B) provides

that in determining which qualifying

advanced energy projects to certify under

this section the Secretary is to take into

consideration projects that—

(1) Will provide the greatest domestic job creation (both direct and indirect)

during the credit period,

(2) Will provide the greatest net impact

in avoiding or reducing air pollutants or

anthropogenic emissions of greenhouse

gases,

(3) Have the greatest potential for

technological innovation and commercial

deployment,

(4) Have the lowest levelized cost of

generated or stored energy, or of measured reduction in energy consumption or

greenhouse gas emission (based on costs

of the full supply chain), and

(5) Have the shortest project time from

certification to completion.

.02 Technical Review Criteria

Generally. DOE will implement the selection criteria and evaluate whether a project merits a DOE recommendation based

on the following four technical review criteria, as described further in Appendix B:

(1) Commercial viability,

(2) Greenhouse gas emissions impacts,

(3) Strengthening U.S. supply chains

and domestic manufacturing for a net-zero

economy, and

Bulletin No. 2023–25

(4) Workforce and community

engagement.

.03 Description of Technical Review

Criteria. These four technical review criteria—described in more detail in Appendix

B—are based on § 48C(d)(3), which originally applied to earlier allocations made

under the 2009 Act, and are intended to

further the overall purposes of the IRA.

(1) Commercial Viability. The first

criterion of commercial viability is a key

criterion for determining which qualifying

advanced energy projects merit consideration based on § 48C(d)(3)(A) and, consistent with § 48C(d)(3)(B)(iv) and (v),

will help to identify projects with the lowest levelized cost and shortest time frame

for completion.

(2) Greenhouse gas emissions impacts.

The second criterion of greenhouse

gas emissions impacts, consistent with

§ 48C(d)(3)(B)(ii), will help to identify

projects with the greatest net impacts in

avoiding or reducing anthropogenic emissions of greenhouse gases.

(3) Strengthening U.S. supply chains

and domestic manufacturing for a net-zero

economy. The third criterion of strengthening U.S. supply chains and domestic

manufacturing for a net-zero economy

is consistent with § 48C(d)(3)(B)(ii) and

(iii), and will help to identify impacts on

domestic job creation and the potential for

technological innovation and commercial

deployment.

(4) Workforce and community engagement. The fourth criterion of workforce

and community engagement, consistent

with § 48C(d)(3)(B)(i), (ii), and (v), will

look to additional facts that can inform

how and to what extent projects will lead

to domestic job creation, reduce barriers

that might otherwise increase project completion time, and have an impact on avoiding or reducing local pollution, including

non-greenhouse gas air pollution.

(5) Interrelationship of criteria. The

four technical review criteria are also

interrelated and work together to help further multiple goals under the statute, and

they are consistent with the IRA’s broader

goals of increasing the deployment of

renewable energy resources, increasing

energy security and domestic investment

in the renewable energy supply chain, and

helping to ensure that benefits of the clean

energy economy are shared broadly.

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SECTION 8. SIGNIFICANT

CHANGE IN PLANS

.01 In General. As provided in section

8.01 of Notice 2023-18, any taxpayer that

submits a concept paper or a § 48C(e)

application must inform DOE and the IRS

if the plans for the project change in any

significant respect from the plans set forth

in the concept paper and the § 48C(e) application. A significant change is any change

that a reasonable taxpayer would conclude

might have negatively influenced DOE in

recommending or ranking the project or

the IRS in issuing the Allocation Letter

had the taxpayer described the change

when submitting the § 48C(e) application.

See section 8.01 of Notice 2023-18 for

how a significant change in plans affects

a § 48C(e) application.

.02 Change in Plan Procedure. If a

project has a significant change in plans:

(1) The taxpayer must upload a letter

to the eXCHANGE portal as an appendix informing DOE and the IRS that the

project has a significant change in plans as

compared to the description of the project

included in the concept paper or § 48C(e)

application.

(2) If the taxpayer submits a letter

informing DOE and the IRS that the project has a significant change in plans, the

submitted letter constitutes an acknowledgment that the project no longer qualifies as a qualifying advanced energy

project or is no longer located within a

§ 48C(e) Energy Communities Census

Tract, and if submitted after the taxpayer

receives an Allocation Letter, that the taxpayer forfeits its § 48C credit allocation.

SECTION 9. DISCLOSURE OF

INFORMATION

.01 Section 48C(e)(7) provides

that upon making a certification under

§ 48C(e), the Secretary is required to disclose publicly the identity of the applicant

and the amount of the credit certified with

respect to such applicant. Accordingly, the

IRS will publish the results of Round 1 of

the § 48C(e) program and will disclose the

identity of the taxpayer and the amount of

the § 48C credits allocated to the taxpayer

with respect to projects that have been

allocated a § 48C credit and have received

a certification.

June 20, 2023

.02 After a taxpayer receives an allocation through the § 48C(e) program, the

eXCHANGE portal will ask the recipient-taxpayer if the taxpayer consents to

disclosure of information in addition to

information that is required by statute to

be disclosed. The additional information

may include the location of the taxpayer’s

§ 48C Facility and a brief description. A

taxpayer’s decision to authorize or not to

authorize the disclosure of any additional

information will not impact the taxpayer’s

§ 48C credit allocation.

SECTION10. PAPERWORK

REDUCTION ACT

Any collection burden associated

with this notice is accounted for in OMB

Control Number 1545-2151.

June 20, 2023

This notice does not alter any previously accounted for information collection

requirements and does not create new collection requirements not already approved

by the Office of Management and Budget.

SECTION 11. EFFECT ON OTHER

DOCUMENTS

Notice

modified.

2023-18

is

clarified

and

SECTION 12. DRAFTING

INFORMATION

.01 The principal author of this notice

is John M. Deininger of the Office of

Associate Chief Counsel (Passthroughs

& Special Industries). For further information regarding this notice contact Mr.

928

Deininger on (202) 317-6853 (not a tollfree call).

.02 Any questions or comments regarding the non-tax aspects of this notice can

be submitted to the Department of Energy

at 48CQuestions@hq.doe.gov. DOE may

post questions and answers related to

this notice on the eXCHANGE portal at

https://48C-exchange.energy.gov (select

48C from the list of options to view questions and answers specific to notice). Any

questions or comments received under this

notice are subject to public release pursuant to the Freedom of Information Act.

DOE is under no obligation to respond to,

or acknowledge receipt of, any questions

or comments submitted under this notice

and any responses provided do not constitute legal advice provided by either DOE

or the IRS.

Bulletin No. 2023–25

APPENDIX A

Qualifying Advanced Energy Projects

THIS APPENDIX A SUPERSEDES APPENDIX A OF NOTICE 2023-18.

For the purposes of determining eligibility for the § 48C credit, a “qualifying advanced energy project” means:

1. Clean Energy Manufacturing and Recycling Projects

A qualifying advanced energy project in this category re-equips, expands, or establishes an industrial or manufacturing facility for

the production or recycling of specified advanced energy property:

a. Property designed to be used to produce energy from the sun, water, wind, geothermal deposits (within the meaning of § 613(e)

(2)), or other renewable resources.

(i) Examples of eligible property include solar panels and their specialized support structures; wind turbines, towers, floating offshore platforms, and related

equipment; power electronics designed for use with eligible solar or wind property; equipment to concentrate sunlight to generate heat for industrial processes or to

convert it to electricity; geothermal turbines and heat pumps; hydropower turbines; and other products directly used to generate electrical and/or thermal energy from

renewable resources, as well as the specialized components, subcomponents, and materials incorporated into any such eligible property, including equipment for

sensing, communication, and control.

(ii) Examples of ineligible property include equipment for applications other than the conversion of energy from renewable resources for delivering electricity,

building heat, or industrial process heat such as a gas turbine generator set which burns natural gas, or a building that houses a boiler to heat water from fossil fuel.

b. Fuel cells, microturbines, or energy storage systems and components.

(i) Examples of eligible property include stationary batteries; stationary hydrogen fuel cells; hydrogen storage vessels; microturbines for combined heat and power

systems; pumps and turbines for pumped hydropower storage systems; and the specialized components of any such equipment, including equipment for sensing,

communication, and control.

(ii) Examples of ineligible property include heavy gas turbines.

(iii) Note: For electric vehicle batteries and fuel cells for vehicles see the “light-, medium-, or heavy-duty electric or fuel cell vehicles” project class.

c. Electric grid modernization equipment or components.

(i) Examples of eligible property include grid equipment for electricity delivery; power flow, control, and conversion, such as transformers, power electronics,

advanced cables and conductors, advanced meters, breakers, switchgears, composite poles, converters, medium-voltage direct current (MVDC) and high-voltage

direct current (HVDC) lines, grid-enhancing technologies, and electrical steel or alloys used in transformer cores. Examples of eligible property also include the specialized components of any such grid modernization equipment, including components for sensing communication, and control.

(ii) Electric vehicle supply equipment qualifies under the “light-, medium-, or heavy-duty electric or fuel cell vehicles” project class. Storage technologies for grid

applications qualify under the “fuel cells, microturbines, or energy storage systems and components” project class.

d. Property designed to capture, remove, use, or sequester carbon oxide emissions.

(i) Examples of eligible property include carbon capture equipment or other property necessary to compress, treat, process, liquefy, pump or perform some other

physical action to capture carbon oxide emissions, including solvents; membranes; sorbents; chemical processing equipment; compressors; monitoring equipment;

and injection equipment; and well components such as packers, casing strings, CO2-resistant concrete, steel tubulars, wellhead, valves, and sensors suitable for use in

Underground Injection Control (UIC) Class VI wells. Eligible property also includes transportation equipment, as in a system of gathering and distribution infrastructure. These include pipelines, temporary or transportation-related carbon oxide storage tanks, valves, sensors, and control panels that serve in collecting carbon oxides

captured from an industrial facility or multiple facilities for the purpose of transporting that carbon oxide. Additional examples include equipment to convert carbon

oxides through mineralization, thermochemical, electrochemical, photochemical, plasma-assisted, or other catalytic process approaches to carbon-based products such

as synthetic fuels, chemicals, solid carbon products, and inorganic materials.

(ii) Examples of ineligible property include scrubbers for conventional air pollutants (except those that are required to remove pollutants upstream of carbon

capture equipment for technical performance reasons), energy generation equipment (except as related to energy recovery at carbon capture systems), and refining

equipment.

e. Equipment designed to refine, electrolyze, or blend any fuel, chemical, or product which is renewable, or low-carbon and

low-emission. For the purposes of Round 1 of the § 48C(e) program, such fuels, chemicals, and products include:

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June 20, 2023

(i) Renewable transportation fuel which:

(A) is suitable for use as a fuel in a vehicle, marine vessel, or aircraft,

(B) is derived from or co-processed with:

(I) a biomass feedstock, or

(II) hydrogen produced from renewable energy and inputs, and

(C) is not derived from palm fatty acid distillates or fossil fuels, including coal, natural gas, and petroleum.

A qualifying advanced energy project does not include any portion of a project for the production of any property which is used in

the refining or blending of any transportation fuel (other than renewable fuels, as described herein).

(ii) Clean hydrogen produced with a well-to-gate lifecycle greenhouse gas (GHG) emissions rate of not greater than 4 kg CO2e per

kg H2, in accordance with the definition of qualified clean hydrogen for purposes of the credit under § 45V.

(iii) Other fuel which:

(A) is derived from or co-processed with a renewable feedstock or achieves at least a 50 percent reduction in lifecycle GHG emissions in comparison with the conventional alternative,

(B) is not a transportation fuel, and

(C) is not derived from palm fatty acid distillates or fossil fuels, including coal, natural gas, and petroleum.

(iv) Product or chemical which:

(A) is derived from or co-processed with a renewable feedstock or achieves at least a 50 percent reduction in lifecycle GHG emissions in comparison with the conventional alternative,

(B) is suitable for use as an industrial feedstock, and

(C) is not derived from palm fatty acid distillates or fossil fuels, including coal, natural gas, and petroleum.

(v) Examples of eligible property include electrolyzers, mixing devices, pumps, separation devices, bioprocessing equipment, biomass preprocessing equipment,

and reactors, so long as they are intended for use to produce eligible fuels, chemicals, and products, as demonstrated through engineering specifications or offtake

agreements.

(vi) Examples of eligible fuels, chemicals, and products produced by eligible equipment include hydrogen produced through electrolysis powered by low- or

zero-emission energy; low-emissions ammonia; renewable biofuels, including sustainable aviation fuel and fuels intended to displace petroleum fuel in on-road and

off-road applications; and low-emissions chemicals, basic organic chemicals, polymers, and resins.

(vii) Examples of ineligible fuels and chemicals would include those derived solely from fossil resources produced through conventional petroleum and natural

gas refining.

Instructions for calculating well-to-gate lifecycle GHG emissions rates are provided in Appendix B, Section V: Additional

Instructions on the Data Sheet Submission.

f. Property designed to produce energy conservation technologies (including residential, commercial, and industrial applications).

(i) Examples of eligible energy conservation property include technologies and grid-interactive devices eligible for residential or commercial efficiency improvements for purposes of the § 25C credit or the § 179D tax deduction, as well as equipment that directly reduces net energy use in industrial applications, such as ultra-efficient heat pumps, insulation, ultra-efficient hot water systems, sensors, controls, and similar advanced efficiency technologies.

(ii) Examples of ineligible energy conservation property includes those that reduce electricity usage by increasing direct natural gas or other fossil fuel use and/or

lead to increased system-level emissions.

g. Light-, medium-, or heavy-duty electric or fuel cell vehicles, as well as technologies, components, or materials for such vehicles,

and associated charging or refueling infrastructure.

(i) Examples of eligible property include battery electric, plug-in hybrid electric, or fuel cell cars, trucks, and buses, as well as the specialized components of those

vehicles, such as batteries, anode and cathode components and materials, electric drive systems, fuel cells, and other materials and subcomponents.

(ii) Examples of eligible charging or refueling infrastructure include electric vehicle supply equipment (EVSE), components from the grid connection to the

vehicle, bidirectional charging equipment, and components used in hydrogen refueling stations (e.g., hydrogen compressors, pumps, storage vessels, and dispensing

equipment).

(iii) Examples of ineligible property include internal combustion engine vehicles of all sizes, non-plug-in hybrid vehicles of less than 14,000 pounds gross vehicle

weight rating, and their components, as well as associated refueling infrastructure, such as petroleum gas, liquefied or compressed natural gas, or ethanol refueling

June 20, 2023

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Bulletin No. 2023–25

stations. Examples of ineligible property also include electrical components upstream of the EVSE connection to the grid and components of charging or refueling

stations, such as signage, that are not directly involved in the transfer of fuel or power to the vehicle.

h. Hybrid vehicles with a gross vehicle weight rating of not less than 14,000 pounds, as well as technologies, components, or

materials for such vehicles.

(i) Examples of eligible property include traction batteries, converters, power electronics, and assembled hybrid vehicles of not less than 14,000 pounds themselves, but components and materials must be designed for large hybrid vehicles with a gross vehicle weight rating of not less than 14,000 pounds, as demonstrated

through engineering specifications and/or offtake agreements.

i. Other advanced energy property designed to reduce greenhouse gas emissions as may be determined by the Secretary.

(i) Examples of eligible advanced energy property include specialized components and equipment for nuclear power reactors or their fuels (e.g., including fabrication of fuels, and manufacturing of equipment for conversion, enrichment, and deconversion), and equipment used to reduce the emissions of industrial facilities,

such as heat and process emissions. Property may be determined to be designed to reduce GHG emissions either through published guidance or in the letter notifying

an applicant that the IRS has accepted the applicant’s application for § 48C(e) certification with respect to the property.

(ii) Advanced energy property that is designed to reduce greenhouse gas emissions by enabling the production of other greenhouse gas emission-reducing advanced

energy property may be eligible under this category. For such “other advanced energy property,” which is not designed to directly reduce GHG emissions, the applicant

must demonstrate that the advanced energy property is highly specialized equipment necessary to strengthen U.S. resilience of critical domestic energy supply chains

and the reduction of GHG emissions is a necessary ultimate outcome from the production of the advanced energy property. This can be demonstrated through the applicant’s proposed business plan, including offtake agreements and any additional market analysis or other technical specialization, to show the advanced energy property

that is produced or recycled by the applicant’s industrial or manufacturing facility will primarily contribute toward reduction of GHG emissions. An example of such

“other advanced energy property” that may be eligible is diamond wire saws necessary in the solar technology supply chain, so long as the applicant demonstrates the

project’s output will be used primarily for the purpose of manufacturing property designed to produce energy from the sun.

Note: This section 1.i. on “other advanced energy property” has been updated with additional clarifying language since the publication of Notice 2023-18.

2. Greenhouse Gas Emission Reduction Projects

A qualifying advanced energy project in this category re-equips an industrial or manufacturing facility, including in energy-intensive manufacturing sectors, such as cement, iron and steel, aluminum, chemicals, and other sectors, with equipment designed to

reduce greenhouse gas emissions by at least 20 percent through the installation of one of more of the following:

a. Low- or zero-carbon process heat systems.

Examples of eligible equipment include electric heat pumps, combined heat and power (CHP) systems, thermal storage technologies, and other heating systems

based on electricity, clean hydrogen, biomass, or waste heat recovery.

b. Carbon capture, transport, utilization, and storage systems.

(i) Examples of eligible equipment include carbon capture equipment necessary to compress, treat, process, liquefy, pump, or perform some other physical action to

capture carbon oxides, and specialized equipment and materials needed for the transport and storage of carbon oxides, including carbon dioxide pipelines, monitoring

equipment, and injection equipment and well components such as packers, casing strings, CO2-resistant cement, steel tubulars, well heads, valves, and sensors suitable

for use in Underground Injection Control Class VI wells. Additional examples include equipment to convert carbon oxides through mineralization, thermochemical,

electrochemical, photochemical, plasma-assisted, or other catalytic process approaches to carbon-based products such as synthetic fuels, chemicals, solid carbon

products, and inorganic materials.

(ii) Examples of ineligible property include scrubbers for conventional air pollutants, except those that are required to remove pollutants upstream of carbon capture

equipment for technical performance reasons; energy generation equipment, except as related to energy recovery at carbon capture systems; and refining equipment.

c. Energy efficiency and reduction in waste from industrial processes.

Examples of eligible equipment include technologies that reduce direct fuel use, electricity use, or waste in industrial applications, such as industrial heat pumps,

CHP systems, insulation, sensors, controls, advanced recycling approaches, smart energy management, and similar advanced efficiency technologies.

d. Any other industrial technology designed to reduce greenhouse gas emissions, as determined by the Secretary.

(i) Examples of other eligible industrial technologies include electrification of direct fuel use processes, adoption of renewable or low-emissions fuels and feedstocks, and other equipment replacement or process redesigns that reduce process- or fuel-related emissions or otherwise contribute to reducing GHG emissions by

at least 20 percent.

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June 20, 2023

(ii) Projects in this category may qualify by installing equipment designed to achieve a minimum of a 20 percent reduction in GHG emissions in one or more of

the following ways:

•

Achieve a direct (Scope 1) GHG emissions reduction of 20 percent facility-wide

•

Achieve an indirect fuel- or energy-related (Scope 2) GHG emissions reduction of 20 percent facility-wide

•

Achieve a direct or indirect fuel- or energy-related GHG emissions reduction of 20 percent at a facility subunit, such as a particular process step or fuel

combustion unit

(iii) While facilities may be eligible under this project category by achieving a 20 percent reduction threshold within a particular element of their process or emissions profile, overall combined Scope 1 and Scope 2 GHG emissions impacts for the full qualifying facility will be taken into account when evaluating each project

for the purposes of application scoring. Scope 1 and Scope 2 GHG emissions are further defined in Appendix B, Section III.

Instructions for calculating and demonstrating an emissions reduction of 20 percent is provided in Appendix B, Section V:

Additional Instructions on the Data Sheet Submission.

3. Critical Material Projects

A qualifying advanced energy project in this category re-equips, expands, or establishes an industrial facility for the processing,

refining, or recycling of critical materials (as defined in § 7002(a) of the Energy Act of 2020 (30 U.S.C. § 1606(a)). For purposes of

this Round 1, critical materials will consist of:

a. The currently effective final list of critical minerals as determined by the U.S. Geological Survey (see 2022 Final List of

Critical Minerals for the list published in 2022 available at: https://www.federalregister.gov/documents/2022/02/24/2022-04027/202

2-final-list-of-critical-minerals); and

b. Any additional critical materials as determined by the Secretary of Energy and for which a final determination is posted on the

DOE’s critical materials page on or before July 31, 2023, available at: http://www.energy.gov/criticalmaterials. A proposed determination was posted at this web address prior to the publication of this notice. Note: DOE reserves the right to extend the deadline for

concept paper submissions based on any changes included in the final determination.

Examples of eligible projects in this project category include the processing of raw ore, brines, mine tailings, end-of-life products, waste streams, and other source

materials into critical materials. Note: These examples have been updated with additional clarifying language since the publication of Notice 2023-18.

Examples of ineligible projects under this project category include the subsequent physical or chemical transformation of critical materials into derivative products,

including metals manufacturing such as aluminum extrusion and chemical manufacturing such as anode and cathode materials production. However, projects involving such derivative products may be eligible under the Clean Energy Manufacturing and Recycling Projects category. Note: These examples have been updated with

additional clarifying language since the publication of Notice 2023-18.

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APPENDIX B

DOE Application Process

THIS APPENDIX B SUPERSEDES APPENDIX B OF NOTICE 2023-18.

I.

DOE Review Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 935

A. Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 935

i.

Program Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 935

ii. Program Key Dates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 935

iii. Program Priorities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 936

iv. Glossary of Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 936

B. Concept Paper. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 937

i.

Compliance and Eligibility Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 937

ii. Technical Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 937

iii. Final Outcome for Concept Papers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 937

C. § 48C(e) Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 937

i.

Compliance and Eligibility Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 938

ii. Technical Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 938

iii. Due Diligence Review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .938

iv. Final Recommendation for § 48C(e) Applications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 938

v.

Requirements for Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 938

vi. Request for Debriefing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 939

II. Submission and Registration Information for DOE Recommendation Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 939

A. General Application Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 939

B. Determining an Application’s Project Category. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 939

C. eXCHANGE Portal for Submission of Application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 940

i.

Submission of Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 940

ii. eXCHANGE Portal Registration Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 940

iii. Help with eXCHANGE Portal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 940

iv. Portal Migration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 940

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D. Application Forms and Format of Submissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 941

i.

Format of Concept Paper Submissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 941

ii. Format of § 48C(e) Application Submission. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 942

E. Electronic Authorization of Applications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 943

F.

Markings of Confidential Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 943

III. Specific Content Requirements and Technical Review Criteria. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 944

A. Clean Energy Manufacturing and Recycling Projects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 944

i.

Concept Papers for Clean Energy Manufacturing and Recycling Projects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 945

ii. Section 48C(e) Application for Clean Energy Manufacturing and Recycling Projects . . . . . . . . . . . . . . . . . . . . . . . . 949

B. Greenhouse Gas Emission Reduction Projects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 957

i.

Concept Papers for Greenhouse Gas Emission Reduction Projects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 958

ii. Section 48C(e) Applications for Greenhouse Gas Emission Reduction Projects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 961

C. Critical Material Projects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 968

i.

Concept Papers for Critical Material Projects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 968

ii. Section 48C(e) Applications for Critical Material Projects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .972

IV. DOE Recommendation Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 979

A. Program Policy Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 979

B. DOE Recommendations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 980

i.

Concept Paper Recommendations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 980

ii. Section 48C(e) Application Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 980

V. Additional Instructions on the Data Sheet Submission. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 980

A. Production Capacity Metrics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 981

B. Jobs Metrics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 981

C. Emissions Metrics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 982

D. Technological or Cost Advantage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 983

E. Levelized Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 983

VI. Section 48C(e) Application Appendix Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 984

VII. Questions/Comments and Informational Webinar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 984

A. Informational Webinar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 984

B. Questions and Comments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 985

June 20, 2023

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I. DOE Review Process

A. Overview

i. Program Process

A two-stage technical evaluation process will be used for submissions:

•

•

Stage 1: Concept Paper.

Stage 2: § 48C(e) Application.

In Stage 1, concept paper application materials will be available for applicants to download from the eXCHANGE portal on May 31,

2023, and concept paper submissions will be accepted in the eXCHANGE portal beginning no later than June 30, 2023. DOE will

only consider concept papers that are submitted by 12:00 PM (noon) Eastern Time on July 31, 2023. Section 48C(e) applications for Round 1 allocations will not be considered by DOE unless a concept paper submission is received from an applicant by the

specified deadline. Potential applicants will not be able to begin or submit concept papers for Round 1 after the deadline.

For Critical Materials Projects, a proposed critical materials determination was posted at the website specified in Appendix A(3) prior

to the publication of this notice. DOE reserves the right to extend the deadline for concept paper submissions based on any changes

included in DOE’s final critical materials determination.

In Stage 2, following DOE’s review of concept papers and transmission of letters encouraging or discouraging the applicant to continue in the process, the eXCHANGE portal will reopen to receive § 48C(e) application submissions for subsequent evaluation by

DOE. The date on which DOE will begin accepting § 48C(e) applications and the deadline by which they must be submitted will be

conveyed to applicants through the eXCHANGE portal on a later date.

In each stage, DOE will review the submitted materials for compliance and eligibility, and perform a thorough, consistent, and objective examination based on technical review criteria and other factors, as described below.

After Stage 2 evaluations of § 48C(e) applications are complete, DOE will transmit allocation recommendations to the IRS for final

consideration. The IRS will notify applicants of final allocation decisions for Round 1 no later than March 31, 2024.

In conducting its review, DOE may utilize assistance and advice from qualified personnel from other federal agencies and/or contractors. DOE will obtain conflict of interest/non-disclosure acknowledgements from and administer required trainings in advance for all

reviewers to assure that application information will be kept confidential and shall be used only for reviewing purposes, in accordance

with applicable requirements. Reviewers will be required to report all personal and organizational conflicts of interest.

DOE reserves the right to request clarifications and/or supplemental information from some or all applicants submitting applications

through written submissions.

DOE may determine whether to recommend or not recommend an application to the IRS at any time after the § 48C(e) application

has been received, without further exchanges or discussions with the applicant.

ii. Program Key Dates

Table: Program Key Dates

Initial Guidance Issue Date

DOE posts proposed list of critical materials

Additional Guidance Issue Date

Informational Webinar

DOE eXCHANGE Portal Opens for registration and concept paper submission

DOE posts final list of critical materials

Submission Deadline for Concept Papers

Submission Deadline for § 48C(e) Applications

IRS Allocation Decision Notifications

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935

02/13/2023

No later than 5/31/2023

05/31/2023

No later than 06/30/2023

No later than 06/30/2023

No later than 07/31/2023

07/31/2023 by 12:00 PM (noon) Eastern

Fall 2023 - Winter 2023/2024

No later than 03/31/2024

June 20, 2023

iii. Program Priorities

Eligible applications will be evaluated by DOE against technical review criteria reflecting four major priority measures for the

program:

•

•

•

•

Criterion 1: Commercial Viability

Criterion 2: Greenhouse Gas Emissions Impacts

Criterion 3: Strengthening U.S. Supply Chains and Domestic Manufacturing for a Net-Zero Economy

Criterion 4: Workforce and Community Engagement

A taxpayer with a qualified investment in any of the projects described as eligible in Appendix A of this guidance may apply for a

§ 48C(e) allocation. In determining whether to recommend a project for an allocation, DOE will take into consideration in § 48C(e)

Round 1 various factors, including whether the project addresses specific energy supply chain and manufacturing priority areas

identified by this guidance when evaluating the extent to which Clean Energy Manufacturing and Recycling Projects and Critical

Materials Projects contribute to strengthening U.S. supply chains and domestic manufacturing for a net-zero economy.

For more details on the energy supply chain and manufacturing priority areas identified by this guidance for Clean Energy

Manufacturing and Recycling Projects, see Section III(A) of this appendix. For more details on the supply chain and manufacturing priority areas identified by this guidance for Critical Materials Projects, see Section III(C) of this appendix.

In determining whether to recommend a project for an allocation, DOE will also consider whether the proposed project is located in

§ 48C(e) Energy Communities Census Tracts, as defined in section 5.06 of Notice 2023-18. In Round 1, DOE anticipates recommending approximately $1.6 billion in § 48C credits to projects located in these communities.

iv. Glossary of Terms

The following terms may be used throughout this appendix describing the DOE application process.

Disadvantaged Community:

Scope 1 Emissions:

Scope 2 Emissions:

Scope 3 Emissions:

Specified Advanced Energy Property:

Facility Product:

June 20, 2023

A disadvantaged community may be either (1) a group of individuals living in geographic

proximity (e.g., such as a census tract identified using the Climate and Economic Justice

Screening Tool), or (2) a geographically dispersed set of individuals, where either type

of group experiences common conditions.

Direct greenhouse gas emissions that occur from sources at the facility associated with

the proposed project (e.g., emissions from fuel combustion or chemical processes).

Indirect greenhouse gas emissions that are associated with the use of energy or fuel at

the facility, but do not occur at the facility (e.g., emissions from a power plant that generates electricity for the facility).

Indirect greenhouse gas emissions that are associated with the facility’s activities and

products but are not covered in Scope 1 or 2, including emissions from the products

themselves in their ultimate use, transportation, or other aspects of the value chain

upstream or downstream from the facility. In the case of clean energy products, these

may also be referred to as “lifecycle emissions.”

A specific category of property listed in 48C(c)(1)(A) and described in further detail in

Appendix A(1). Clean Energy Manufacturing and Recycling Projects under § 48C(e)

must either produce or recycle one or more specified advanced energy properties. For

example, solar glass would be considered a specified advanced energy property covered

under Appendix A(1)(a).

The direct output of a facility that is sold or leased. A facility product may be a specified

advanced energy property, but facility products could also include specialized components, materials, equipment, or other tangible assets that are not considered specified

advanced energy properties under § 48C(e). For instance, recycling projects under Clean

Energy Manufacturing and Recycling, and Greenhouse Gas Emission Reduction projects, may produce outputs that are not specified advanced energy properties. Facilities

may have more than one facility product.

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B. Concept Paper

The first stage of DOE review requires applicants to submit concept papers describing the proposed project. Sections II and III of this

appendix describe the information applicants must include in concept papers and the format of the submission. Concept papers will

undergo a multi-step evaluation by DOE.

i. Compliance and Eligibility Review

DOE will carry out an initial compliance review for concept papers to determine that (1) eligibility requirements have been met,

(2) the required information has been submitted, (3) the proposed project is technically valid, and (4) all mandatory requirements of

this notice are satisfied. As part of this review, DOE will determine whether the proposed project meets the definition of a qualifying

advanced energy project, as described in Appendix A.

If a concept paper fails to meet compliance or eligibility requirements or fails to provide sufficient information for evaluation, DOE

reserves the right to request clarifications and/or missing information from some or all applicants through written submissions provided to DOE in a timely manner. Concept papers that fail to meet the compliance or eligibility requirements or do not provide sufficient information for evaluation will be considered non-responsive and will receive a discouragement letter.

ii. Technical Review

Subsequent to the concept paper compliance and eligibility review, DOE will perform a technical review process based on four technical review criteria:

•

•

•

•

Criterion 1: Commercial Viability.

Criterion 2: Greenhouse Gas Emissions Impacts.

Criterion 3: Strengthening U.S. Supply Chains and Domestic Manufacturing for a Net-Zero Economy.

Criterion 4: Workforce and Community Engagement.

See complete details of the technical review criteria in Section III of this appendix. All technical review criteria will be used in a

thorough, consistent, and objective examination to develop scores for ranking applications and determining merit of each proposed

project. The review of the Commercial Viability criterion will additionally inform eligibility by determining whether the project has

a reasonable expectation of commercial viability, as described in § 48C(d)(3)(A). The information requested for each criterion will

vary based on the qualifying advanced energy project category, as detailed in Section III.

iii. Final Outcome for Concept Papers

Following the compliance, eligibility, and technical reviews, DOE may also consider program policy factors when determining the

final portfolio of recommendations (see Section IV of this appendix).

Subsequent to this review, DOE will issue a letter to applicants either encouraging them to submit a § 48C(e) application or discouraging them from submitting a § 48C(e) application.

An applicant that receives a discouragement letter may still submit a § 48C(e) application in accordance with the § 48C(e) program

and additional guidance. Receiving a discouragement letter in response to a submitted concept paper does not disqualify a taxpayer

from submitting a § 48C(e) application but represents DOE’s feedback that the project, as proposed, is unlikely to receive a recommendation based on the information provided in the concept paper. DOE expects to transmit encouragement and discouragement

letters to applicants in the fall of 2023.

In the encouragement and discouragement notifications, DOE will provide feedback to all applicants on areas needing improvement.

C. § 48C(e) Application

The second evaluation stage will consist of a review of § 48C(e) applications submitted after the concept paper stage. Sections II

and III of this appendix describe the information applicants must include in a § 48C(e) application and the format of the submission.

Applicants may not submit a § 48C(e) application unless they submitted a concept paper by the specified deadline.

The deadline for § 48C(e) applications will be communicated to applicants in the encouragement and discouragement letters and

posted on the eXCHANGE portal.

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June 20, 2023

i. Compliance and Eligibility Review

DOE will carry out an initial compliance review for § 48C(e) applications to determine that (1) the eligibility requirements have been

met, (2) the required information has been submitted, (3) the proposed project is technically valid, and (4) all mandatory requirements

of this notice are satisfied. As part of this review, DOE will determine whether the proposed project meets the definition of a qualifying advanced energy project, as described in Appendix A.

If a § 48C(e) application fails to meet compliance or eligibility requirements or fails to provide sufficient information for evaluation,

DOE reserves the right to request clarifications and/or missing information from some or all applicants through written submissions

provided to DOE in a timely manner. Section 48C(e) applications that fail to meet the compliance and eligibility requirements or do

not provide sufficient information for evaluation will be considered non-responsive, and DOE will recommend a denial of allocation

without proceeding to technical review.

The qualifying advanced energy project category, the specified advanced energy property, and the scope of the overall project must

be consistent between the applicant’s concept paper and § 48C(e) application. Applicants who wish to change the scope of the project,

based on the feedback in a discouragement letter or for any other reason, may consider participating in a future round of this program.

ii. Technical Review

After the § 48C(e) application compliance and eligibility review, DOE will perform a technical review process based on four technical review criteria:

•

•

•

•

Criterion 1: Commercial Viability

Criterion 2: Greenhouse Gas Emissions Impacts

Criterion 3: Strengthening U.S. Supply Chains and Domestic Manufacturing for a Net-Zero Economy

Criterion 4: Workforce and Community Engagement

See complete details of the technical review criteria for § 48C(e) applications in Section III of this appendix. All technical review

criteria will be used in a thorough, consistent, and objective examination to develop scores for ranking applications and determining

merit of each proposed project. The review of the Commercial Viability criterion will additionally inform eligibility by determining

whether the project has a reasonable expectation of commercial viability, as described in § 48C(d)(3)(A). The information requested

for each criterion will vary based on the qualifying advanced energy project category, as detailed in Section III.

iii. Due Diligence Review

To ensure the § 48C(e) program supports strengthening and securing U.S. supply chains and domestic manufacturing to the greatest

extent possible, DOE may conduct a due diligence review to determine if an applicant has a connection with a country of risk that

could put these goals at risk.

iv. Final Recommendation for § 48C(e) Applications

Following the compliance, eligibility, and technical reviews, DOE may also consider program policy factors and the results of the due

diligence review when determining the final portfolio of recommendations (see Section IV of this appendix).

After this determination of recommendations, DOE will transmit to the IRS its recommendations for allocations and denials of applications, as detailed in the initial § 48C(e) program guidance (Notice 2023-18) and this notice.

v. Requirements for Certification

As described in this notice, applications receiving allocation letters must provide evidence that they have met the requirements for

certification, such as all permits necessary to commence construction. Applicants will upload documents providing this evidence to

the eXCHANGE portal not later than 2 years from the date the IRS notified the applicant that they have received an allocation.

DOE’s recommendation is based in part on commitments and other claims stated by the applicant in the § 48C(e) application. The

evidence provided by the applicant for certification must therefore also include documents demonstrating that any commitments or

other claims in the § 48C(e) application have been met. These documents could include Community Benefits Agreements, collective

bargaining agreements, contracts, offtake agreements, or any other commitments or arrangements claimed in the § 48C(e) applications that may have had an impact on the evaluation of the application. Documents already provided as appendices in the § 48C(e)

application do not need to be submitted again for certification.

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vi. Request for Debriefing

Upon receiving a denial letter from the IRS, applicants can request a debriefing with DOE on its review of the § 48C(e) application.

The denial letter will include instructions for requesting a debriefing.

II. Submission and Registration Information for DOE Recommendation Process

A. General Application Requirements

Applicants must submit a concept paper at Stage 1 and a § 48C(e) application at Stage 2 as described below. All submitted materials

must be prepared in accordance with the guidance in this notice to provide a standard basis for review and to ensure that each application will be uniform as to format and sequence.

Concept papers and § 48C(e) applications should clearly address each of the eligibility requirements and applicable technical review

criteria to demonstrate the applicant’s capability, knowledge, and experience regarding the requirements described herein.

Applicants should fully address the requirements of Notice 2023-18 and this notice and not rely on any presumed background knowledge. DOE will discourage a concept paper or recommend the rejection of a § 48C(e) application that does not follow the instructions

regarding the organization and content when the nature of the deviation and/or omission precludes meaningful review of the project.

All concept papers and § 48C(e) applications must be submitted through the eXCHANGE portal to be considered for DOE

recommendation under this notice.

Concept papers and § 48C(e) applications received after the stated deadlines will not be reviewed or considered for DOE

recommendation.

B. Determining an Application’s Project Category

Eligible projects under the § 48C(e) program, as described in Appendix A, are classified into three overarching project categories:

Clean Energy Manufacturing and Recycling Projects, Greenhouse Gas Emission Reduction Projects, and Critical Material Projects.

Before developing application materials, an applicant must determine which qualifying advanced energy project category is most

applicable to their project.

Section III of this guidance contains instructions for content requirements and technical review criteria specific to each project category. Applicants should only complete their application package using the appropriate guidance in Section III, corresponding to the

applicant’s self-determined qualifying advanced energy project category. It is incumbent upon the applicant to adequately justify their

determination of project category through application narratives.

The following table may assist applicants in determining the qualifying advanced energy project category most appropriate for their

proposed project.

Project Category

Clean Energy Manufacturing

and Recycling

Greenhouse Gas Emission

Reduction

Critical Materials

Bulletin No. 2023–25

This Category Includes…

• Facilities that produce one or more specified advanced energy

properties, or its components or materials, described in Appendix

A(1); or

• Facilities that recycle one or more specified advanced energy

properties described in Appendix A(1).

• Projects at existing industrial or manufacturing facilities that

reduce GHG emissions by at least 20%.

• Note: Facilities are not required to produce products or materials

with energy applications or those described in Appendix A(1) and

Appendix A(3).

• Facilities that process, refine, or recycle one or more critical

materials described in Appendix A(3).

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Application Materials

Section III(A)

Section III(B)

Section III(C)

June 20, 2023

C. eXCHANGE Portal for Submission of Application

The eXCHANGE portal, and its successor portal (see Section iv, Portal Migration,) will provide a single interface for applicants

through all steps of the § 48C(e) application process, including concept paper submission, receipt of concept paper feedback, § 48C(e)

application submission, receipt of an allocation or denial letter from the IRS, submission of evidence documents to DOE for certification, receipt of a certification letter from the IRS, submission of notification to DOE that the project has been placed in service or

otherwise disposed, and receipt of notification from the IRS that the applicant may claim the credit.

Files required for submission of concept papers, including concept paper templates and data sheets, are available for applicants at https://48C-exchange.energy.gov on the date of this notice. The eXCHANGE portal will be open for registration and

submission of concept papers no later than June 30, 2023.

i. Submission of Application

All § 48C(e) application materials must be submitted through the eXCHANGE portal at https://48C-exchange.energy.gov to be

considered by DOE. Section 48C(e) applications submitted by any other means will not be accepted. Note: The eXCHANGE portal

website address has been modified since Notice 2023-18 was published, and the address specified in this guidance must be used.

The applicant will receive an automated response when the concept paper or § 48C(e) application is received. This will serve as confirmation of receipt. Do not reply to the automated response. For more information, refer to the 48C eXCHANGE Login Guide, which

will be available in the Manuals section of the eXCHANGE portal at https://48C-exchange.energy.gov/ no later than June 30, 2023.

It is the responsibility of the applicant to verify successful transmission prior to the concept paper and § 48C(e) application deadlines.

ii. eXCHANGE Portal Registration Process

In order to submit concept papers and § 48C(e) applications, all applicants must register an account in the eXCHANGE portal at

https://48C-exchange.energy.gov. It is recommended that each applicant organization designate a primary contact point responsible

for each submission. The primary user may specify an additional contact within their organization who may register in the portal as

a backup user.

Potential applicants will be required to have a Login.gov account to access the eXCHANGE portal. As part of the eXCHANGE portal

registration process, new users will be directed to create an account in Login.gov. Note: The email address associated with Login.gov

must match the email address associated with the eXCHANGE portal account. For more information, refer to the 48C eXCHANGE

Login Guide, which will be available in the Manuals section of the eXCHANGE portal at https://48C-exchange.energy.gov/ no later

than June 30, 2023.

Due to final configuration changes for the eXCHANGE portal, applicants who registered on the eXCHANGE portal prior to May 31,

2023, must register again at https://48C-exchange.energy.gov, on or after the date the portal opens for registration and submission

of concept papers.

iii. Help with eXCHANGE Portal

Applicants may email InfrastructureExchangeSupport@hq.doe.gov for questions regarding the registration process or submitting

your application on the eXCHANGE portal.

For questions regarding other non-tax aspects of the § 48C(e) program unrelated to the eXCHANGE portal, see Section VII.

iv. Portal Migration

DOE intends to migrate all § 48C(e) applicants to a successor portal in the future. Detailed timing and instructions for migrating to

the new portal will be conveyed to all applicants through the eXCHANGE portal no earlier than the submission deadline for concept

papers.

Any reference in this guidance to the applicant portal, and any reference to the eXCHANGE portal, means the eXCHANGE portal

or its successor.

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D. Application Forms and Format of Submissions

Applicants must log in to the eXCHANGE portal to download all required forms and submit concept papers and § 48C(e) applications to be considered for a § 48C(e) credit allocation. The applicant will have the opportunity to re-submit revised application

materials for any reason as long as the revision is submitted by the specified deadline.

i. Format of Concept Paper Submissions

This section outlines the format of the concept paper submission. See Appendix A for a description of the eligibility requirements for

the § 48C credit under this notice. See Section III for content requirements and a description of the technical review criteria that will

be used to evaluate submitted concept papers.

The applicant’s Control Number is used throughout the submitted files. The control number is a unique identifier generated

by the eXCHANGE portal for your application and will be determined by the system when the applicant first begins their

application process.

The purpose of the concept paper stage is to save applicants the considerable time and expense of preparing § 48C(e) applications for

proposed projects that are unlikely to be selected for recommendation. The concept paper must conform to the following requirements:

1.

2.

3.

4.

5.

The concept paper must be written in English.

All pages must be formatted to fit on 8-1/2 by 11-inch paper with margins not less than one inch on every side. Use Times New

Roman typeface, a black font, and a font size of 11 points or larger (except in figures and tables). A symbol font may be used to

insert Greek letters or special characters; the font size requirement still applies.

References must be included as footnotes or endnotes in a font size of 10 or larger. Footnotes and endnotes are counted toward

the maximum page requirement.

The control number must be prominently displayed on the upper right corner of the header of every page. Page numbers must be

included in the footer of every page.

Each must be submitted in Adobe PDF format unless stated otherwise.

Each concept paper should be limited to unique property within a distinct qualifying advanced energy project that does not overlap

with a qualifying advanced energy project in any other application submitted by the same applicant:

•

•

For applicants applying under the Clean Energy Manufacturing and Recycling Project category, or the Critical Materials Project

category, the applicant may submit more than one application involving the same facility. However, the qualified investment for

each project at the same facility may not overlap in Round 1.

For applicants applying under the Greenhouse Gas Emission Reductions Project Category, the applicant may submit only one

application at the same facility in Round 1.

If projects involve more than one qualifying advanced energy project listed in Appendix A, then applicants must choose a primary

specified advanced energy property for their project. The entire concept paper submission includes three components: a narrative, a

workforce and community engagement plan, and a data sheet.

The concept paper narrative must not exceed 4 pages when printed using the formatting requirements set forth above and single

spaced. Pages in excess of the page limitation will not be considered for review. No material may be incorporated by reference as

a means to circumvent the page limitation. The concept paper narrative should be submitted in Adobe PDF format with the title

[ControlNumber]-ConceptPaper.pdf. For example, for a control number of 1234, the file would be named, “1234-ConceptPaper.

pdf”.

The workforce and community engagement portion of the concept paper will be submitted in a separate file and must not exceed

1 page when printed using the formatting requirements set forth above and single spaced. Pages in excess of the page limitation

will not be considered for review. No material may be incorporated by reference as a means to circumvent the page limitation. The

concept paper workforce and community engagement plan should be submitted as separate file in Adobe PDF format with the title

[ControlNumber]-CP-WCE.pdf.

The Concept Paper Data Sheet should be completed and submitted as a separate Excel document with the title [ControlNumber]CP-DataSheet.xlsx. Additional instructions for completing the Concept Paper Data Sheet submissions are included in Section V.

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June 20, 2023

Note: The maximum file size that can be uploaded to the eXCHANGE portal is 10 MB. Files in excess of 10 MB cannot be uploaded,

and hence cannot be submitted for review. If a file exceeds 10 MB but is still within the maximum page limit, it must be broken into

parts and denoted to that effect in the naming convention of the file. For example: “[ControlNumber]-ConceptPaper_Part_1.pdf”,

“[ControlNumber]-ConceptPaper_Part_2.pdf”.

The full list of required files for concept paper submission is illustrated in the following table.

Table: Files Required for Concept Paper Submission

Component

Concept Paper

Concept Paper Workforce and Community

Engagement Plan

Concept Paper Data Sheet

File Format

PDF

PDF

Maximum Pages

4

1

File Name

[ControlNumber]-ConceptPaper.pdf

[ControlNumber]-CP-WCE.pdf

MS Excel

N/A

[ControlNumber]-CP-DataSheet.xlsx

For all files, “[ControlNumber]” should be replaced by the application’s control number. For example, for a control number of 1234,

the file would be named, “1234-ConceptPaper.pdf”.

ii. Format of § 48C(e) Application Submission

This section outlines the format of the § 48C(e) application submission. Section 48C(e) applications should be formatted and arranged

as described in this section. Strict adherence is required. Content requirements for § 48C(e) applications and the technical review

criteria used by DOE to evaluate them are listed in Section III.

The applicant’s Control Number is used throughout the submitted files. The control number is a unique identifier generated

by the eXCHANGE portal for your application and will be determined by the system when the applicant first begins your

application process.

Section 48C(e) applications must conform to the following requirements:

1.

2.

3.

4.

5.

6.

All § 48C(e) applications must be written in English.

All pages must be formatted to fit on 8-1/2 by 11-inch paper with margins not less than one inch on every side. Use Times New

Roman typeface, a black font, and a font size of 11 points or larger (except in figures and tables). A symbol font may be used to

insert Greek letters or special characters; the font size requirement still applies.

References must be included as footnotes or endnotes in a font size of 10 or larger. Footnotes and endnotes are counted toward

the maximum page requirement.

The Control Number, which is the same number used for the concept paper, must be prominently displayed on the upper right

corner of the header of every page. Page numbers must be included in the footer of every page.

Cash flow models should be submitted as a Microsoft ® Excel spreadsheet and must include calculation formulas and assumptions.

All § 48C(e) applications must be submitted in Adobe PDF format unless stated otherwise.

Each § 48C(e) application should be limited to a unique project with a distinct qualified investment. If projects involve more than one

specified advanced energy property listed in Appendix A, then applicants must choose a primary specified advanced energy property

for their project. The entire § 48C(e) application submission includes five components: a narrative, a workforce and community

engagement plan, a business entity certification, a data sheet, and appendices.

The § 48C(e) application narrative must not exceed 30 pages when printed using the formatting requirements set forth above

and single spaced. Pages in excess of the page limitation will not be considered for review. No material may be incorporated by reference as a means to circumvent the page limitation. Section 48C(e) application narratives should be submitted in Adobe PDF format

with the file name [ControlNumber]-48CApplication.pdf.

The workforce and community engagement portion of the § 48C(e) application will be submitted in a separate file and must

not exceed 5 pages when printed using the formatting requirements set forth above and single spaced. Pages in excess of the

page limitation will not be considered for review. No material may be incorporated by reference as a means to circumvent the page

limitation. The § 48C(e) application workforce and community engagement plan should be submitted as a separate file in Adobe PDF

format with the file name [ControlNumber]-App-WCE.pdf.

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The 48C Business Entity Certification, which supports DOE’s Due Diligence Review, should be completed and submitted as a separate file using the provided template or a comparable format including the same substantive information. Applicants must submit the

file as a PDF with the file name [ControlNumber]-BusinessEntityCertification.pdf.

The 48C Application Data Sheet should be completed and submitted as a separate Excel document with the file name [ControlNumber]App-DataSheet.xlsx. Additional instructions for completing the 48C Application Data Sheet are included in Section V.

Any supporting documents should be uploaded as separate, individual files, preferably in Adobe PDF format. Content provided as

appendices do not count towards any page limits described above.

Note: The maximum file size that can be uploaded to the eXCHANGE portal is 10 MB. Files in excess of 10 MB cannot be uploaded,

and hence cannot be submitted for review. If a file exceeds 10 MB but is still within the maximum page limit, it must be broken into

parts and denoted to that effect. For example: “48CApplication _Part_1.pdf”, “48CApplication_Part_2.pdf”.

The full list of required files for § 48C(e) application submission is illustrated in the following table.

Table: Files Required for § 48C(e) Application Submission

Component

Section 48C(e) Application

Section 48C(e) Application Workforce

and Community Engagement Plan

Business Entity Certification

48C Application Data Sheet

Appendix Files

File Format

PDF

PDF

Maximum

Pages

30

5

PDF

MS Excel

Various

N/A

N/A

N/A

File Name

[ControlNumber]-48CApplication.pdf

[ControlNumber]-App-WCE.pdf

[ControlNumber]-BusinessEntityCertification.pdf

[ControlNumber]-App-DataSheet.xlsx

[ControlNumber]-Appendix-[FileNumber].[format]

(e.g. 1234-Appendix-1.pdf)

For all files, “[ControlNumber]” should be replaced by the application’s control number. For example, for a control number of 1234,

the file would be named, “1234-ConceptPaper.pdf”.

See Section VI for information on which supporting documents should be submitted as appendix materials.

E. Electronic Authorization of Applications

Submission of § 48C(e) application materials through electronic systems used by DOE, including the eXCHANGE portal or its successor, will constitute the authorized representative’s approval and electronic signature.

F. Markings of Confidential Information

If elements of a § 48C(e) application contain information the taxpayer considers to be trade secrets, confidential, privileged, or otherwise exempt from disclosure under the Freedom of Information Act (FOIA, 5 U.S.C. § 552), the taxpayer may assert a claim of

exemption at the time of application by placing the following text on the first page of the § 48C(e) application, and specifying the

page or pages of the § 48C(e) application to be restricted:

“Pages [list applicable pages] of this document may contain trade secrets, confidential, proprietary, or privileged information that is

exempt from public disclosure. Such information shall be used or disclosed only for evaluation purposes. The Government may use

or disclose any information that is not appropriately marked or otherwise restricted, regardless of source. [End of Notice]”

The header and footer of every page that contains confidential, proprietary, or privileged information must be marked as follows:

“Contains Trade Secrets, Confidential, Proprietary, or Privileged Information Exempt from Public Disclosure.” In addition, each

line or paragraph containing proprietary, privileged, or trade secret information must be clearly marked with double brackets or

highlighting.

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III. Specific Content Requirements and Technical Review Criteria

The following subsections contain detailed guidance for content requirements and technical review criteria for each respective

project category—Clean Energy Manufacturing and Recycling Projects, Greenhouse Gas Reduction Projects, and Critical Material

Projects—for both the concept paper stage and § 48C(e) application stages.

It is the applicant’s responsibility to determine the most applicable qualifying advanced energy project category (defined in Appendix

A), according to the guidance in Section II(B), Determining an Application’s Project Category. Applicants should complete their

application package using only the guidance in this section for their application’s project category.

Applicants proposing Clean Energy Manufacturing and Recycling Projects, or Critical Materials Projects will be asked to discuss both

their project’s specified advanced energy property and their project’s “facility products/outputs.” Facility products/outputs include the

equipment, materials, or other products produced in the facility associated with the proposed project, and which are typically sold or

leased after production.

Applicants should note that “facility products/outputs” may or may not be the project’s specified advanced energy property. For

example, under the Clean Energy Manufacturing and Recycling Project category, the specified advanced energy property of a clean

energy manufacturing project is likely to be the facility’s primary product/output. In contrast, the specified advanced energy property of a clean energy recycling project is an input to the proposed facility, while the facility product/output is typically one or more

materials extracted in the recycling process. A Critical Materials Recycling Project’s facility product/output is typically also the

project’s specified advanced energy property.

A. Clean Energy Manufacturing and Recycling Projects

Priority Areas for Clean Energy Manufacturing and Recycling Projects

All Clean Energy Manufacturing and Recycling Projects described in Appendix A(1) of this guidance are eligible to apply for a

§ 48C(e) allocation and will be evaluated by DOE against the four technical review criteria reflecting overall program objectives:

•

•

•

•

Criterion 1: Commercial Viability

Criterion 2: Greenhouse Gas Emissions Impacts

Criterion 3: Strengthening U.S. Supply Chains and Domestic Manufacturing for a Net-Zero Economy

Criterion 4: Workforce and Community Engagement

When evaluating the Strengthening U.S. Supply Chains and Domestic Manufacturing for a Net-Zero Economy criterion, DOE will

take into consideration whether the project addresses the following energy supply chain and manufacturing priority areas. These

priority areas have been identified based on analytical criteria including an assessment of current and anticipated supply chain gaps

in areas eligible under § 48C(e):

Round 1 Priority Areas (in alphabetical order):

• Clean Hydrogen: Manufacturing of electrolyzers, fuel cells, and associated components (including gas diffusion layers,

bipolar plates, and power electronics).

• Electric Grid: Manufacturing of transformers, materials (including electrical steel, amorphous alloy), power electronics, and

other grid components and equipment (including MVDC/HVDC converter station components and switchgears).

• Electric Heat Pumps: Manufacturing of air-source or ground-source heat pump components and infrastructure, particularly

reversing valves, control circuits, compressors, and heat exchangers.

• Electric Vehicles**: Manufacturing of power electronics (including semiconductors, modules, and circuits for EV motor

traction drives, on-board EV chargers, DC/DC converters, and EV charging stations), permanent magnets, and battery components for use in electric vehicle motors.

• Nuclear Energy: Manufacturing of specialized components and equipment for nuclear power reactors or their fuels (including fabrication of fuels, and manufacturing of equipment for conversion, enrichment, and deconversion), for both existing

reactors and new reactor deployments.

• Solar Energy**: Polysilicon, wafer production facilities, ingot and wafer production tools, and solar glass production

facilities.

• Sustainable Aviation Fuels: Manufacturing of equipment needed for low-carbon aviation fuel production (including feedstock handling equipment and pre-treatment reactors).

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•

Wind Energy**: Component production facilities and specialized steel production, particularly for offshore wind, such as

monopile-grade steel and towers; recycling of wind components, particularly blades.

** The production of some products under this section may be eligible for tax credits under § 45X and receiving an allocation under

§ 48C(e) may preclude an applicant from receiving tax credits under that program. Applicants are encouraged to evaluate which

program may be most beneficial to their project before submitting a concept paper for consideration under § 48C(e).

These priority areas apply to Round 1, and guidance for future rounds under § 48C(e) may include different priority areas.

i. Concept Papers for Clean Energy Manufacturing and Recycling Projects

a) Concept Paper Content for Clean Energy Manufacturing and Recycling Projects

This section describes the specific content that applicants must provide in the concept paper files for applications proposing

Clean Energy Manufacturing and Recycling Projects. Template files for submitting this information will be provided through the

eXCHANGE portal.

Table: Concept Paper Content Requirements for

Clean Energy Manufacturing and Recycling Projects

Section

Project Overview

Information Required

Provide an overview of the proposed project. At a minimum, include:

• Company Overview: Describe your company, including prior experience manufacturing or recycling

qualifying advanced energy technologies relevant to the proposed project.

Commercial

Viability

• Project Summary: Describe the eligible manufacturing or recycling facility, including size, location,

and other relevant information. Indicate what the investment will accomplish, including the specified

advanced energy property detailed in Appendix A(1), whether the facility will manufacture or recycle

the specified advanced energy property, and whether the project will establish, re-equip, or expand a

facility. If the project involves more than one specified advanced energy property, indicate the project’s

primary advanced energy property, and any additional advanced energy properties the project will

produce or recycle. In the case of a recycling project, describe the facility’s products and any clean

energy supply chains they will support. Summarize the equipment and processes employed in the

proposed facility, and for projects that re-equip or expand facilities, summarize what will be added or

changed in the facility.

Project Plan: At a minimum, include:

• Project Timeline: Provide planned dates to begin construction and operation of the project, and how

many months the project will take to commence production and achieve full production capacity once

certified.

• Siting and Permitting: Explain the rationale for selection of the project site, including motivating factors

such as suppliers, offtakers, and co-located industries. Indicate the current status of any required siting

and permitting.

• Risk Management Plan: Identify project risks or challenges and any relevant strategies for risk

mitigation and management, such as legal, financial, engineering, procurement, construction, physical

climate, and environmental risks.

Business Plan:

• Financial Information: Describe sources of financing for the proposed project, including the amount

and strength of funding sources that will provide the equity to be invested in the project, the amount

of total debt obligations that will be incurred and the funding sources of all such debt, and the dollar

amount of incentives or funds pursued or awarded from local and state governments, as well as other

federal incentives pursued or awarded.

• Market Information: Describe the market your product will serve and its growth potential, as well as

your product’s anticipated market share and target consumers.

• Cost Information: Provide the estimated cost of your facility’s product and how it compares to similar

technologies or materials in the same market segment.

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Section

Information Required

Management Plan:

• Describe the key management team members who will design, construct, permit, and operate the

facility. Include a description of relevant industry experience of the top-tier executives responsible for

the success of the project.

Greenhouse Gas

Emissions Impacts

• Describe any corporate health indicators, including legal claims or liabilities, planned debt restructuring,

planned corporate actions, and other factors that could negatively affect the likelihood of project

completion.

GHG Emissions Impacts of the Facility’s Products: At a minimum, include:

• End Product Impacts: Describe the end-use application of facility’s products and how their use,

whether that is independently (e.g., energy efficiency equipment) or as part of a larger specified

advanced energy product (e.g., blade in wind tower) will avoid or reduce GHG emissions. Provide

product specifications to verify these claims.

○

In the case of specified advanced energy property that provides GHG reduction or avoidance over

incumbent technologies or systems, such as clean energy, clean vehicle, or efficiency products,

applicants should describe the product’s typical use in the narrative and provide quantitative

information in the Data Sheet.

○

In the case of carbon capture or removal equipment, applicants should quantify direct GHG

reductions enabled by the product in typical use in the Data Sheet.

○

In the case of electrolyzing, refining, or blending equipment, applicants should describe the fuel,

chemical, or product and its production process, including feedstocks, in the narrative and Data

Sheet.

○

In the case of specified advanced energy property that provides indirect GHG reduction or

avoidance, applicants may wish to qualitatively describe how the facility's products could contribute

to emissions reductions by reducing energy or fuel demand or accelerating adoption of lowemissions technologies (e.g., for enabling technology such as grid components, storage, or charging

infrastructure).

○

In the case of recycling projects, applicants should qualitatively describe how the facility's products

are expected to reduce emissions through their use and by reducing raw material needs or emissions

associated with end-of-life.

• Product Performance: Provide any details about the innovation and performance of the end product

(e.g., efficiency, range, and economic life) that indicate its ability to facilitate deeper GHG emissions

reductions than leading competitors or incumbents. This may not be applicable for facilities whose

outputs are materials.

Note: For applicants applying for other advanced energy projects under Appendix A(1)(i), “Other

advanced energy property designed to reduce greenhouse gas emissions as may be determined by the

Secretary”, applicants must demonstrate the reduction of GHG emissions is a necessary ultimate outcome

from the manufacture of the advanced energy property.

GHG Emissions from the Facility: Describe the GHG emissions associated with the facility. At a

minimum, include:

• Direct Emissions: Qualitatively and, where possible, quantitatively characterize the anticipated sources

of GHG emissions in the manufacturing or recycling process (e.g., fuel use, process emissions).

• Facility Performance: Provide any details about the manufacturing process (e.g., efficiency and

lifetime) that indicate its potential to result in lower emissions than leading competitors or incumbents.

• Mitigation Efforts: Describe any planned efforts to mitigate GHG emissions at the proposed facility,

including the use of best-in-class or innovative manufacturing or recycling approaches and/or lowcarbon fuels, processes, or materials.

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Section

Information Required

Strengthening U.S. At a minimum, include:

Supply Chains

• Output of Your Facility: Describe the facility’s products and associated quantities. Indicate

and Domestic

whether production from your facility covers multiple supply chain segments—processed material,

Manufacturing

subcomponents, components, system/end products—and how those segments interact. In the Concept

for a Net-Zero

Paper Data Sheet, submit the relevant production capacity information for the facility’s outputs (see

Economy

Section V for a description of these terms):

○

Annual Production.

○

Manufacturing Contribution.

○

Share of Facility Output.

○

Real-World Annual Performance.

○

Product Lifetime.

• Inputs to Your Facility: Describe key inputs to your manufacturing or recycling process. In the case

of recycling facilities, this should include the qualifying energy property being recycled. Describe any

known sources for your inputs, including indicating domestic sources and any current or anticipated

supply chain vulnerabilities.

• Supply Chain Resilience: Describe how your facility’s products will help build resilience of domestic

supply chains that are critical for energy products that facilitate progress towards a net-zero economy,

from raw materials to end-of-life.

Workforce and

Community

Engagement

(submitted as a

separate PDF

document)

• End-Use Applications: Indicate whether the facility’s products will be used in multiple qualifying

advanced energy technologies (e.g., wind, solar, and electric grid) or multiple sectors (e.g.,

transportation, industry, and electricity). Describe any offtake or sales arrangements that help to justify

the indicated end-use applications.

Describe your plan for contributing to job creation and ensuring project viability, timely completion, and

ultimate success by fostering a stable and supportive workforce and host community. At a minimum,

include:

• Job Creation and Workforce Continuity:

○

Briefly characterize the jobs (both direct and indirect) your project will create (e.g., mechanics and

construction workers), including (a) during completion of the project and (b) after the project is

placed in service, and any indicators of job quality.

○

Describe partnerships with apprenticeship readiness programs, or community-based workforce

training and support organizations serving displaced industrial workers, including in the coal, other

energy, and automotive sectors, and others facing systematic barriers to employment to facilitate

participation in the project’s construction and operations.

• Ensuring Timely Project Completion Through Workforce and Community Engagement:

○

Describe current and planned efforts to engage with community and labor stakeholders, including as

it relates to the ability to complete the project in the shortest time and with adequate workforce.

○

Describe current and planned efforts to ensure availability of the workforce needed to successfully

complete the project and place it in service in a timely manner, including through training programs

that serve workers currently underrepresented in the sector.

○

Describe any activities to strengthen support of the community such as through benefit-sharing

agreements, consideration of environmental impact, and use of local resources.

• Energy Community Transition:

○

Describe the extent to which the project will support energy communities, through transition

opportunities for workers in the coal, other energy, and automotive sectors, and through the use of

existing infrastructure in energy transition communities.

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Section

Information Required

• Local Environmental Impacts:

○

Describe the impact of your project on local air, water, and/or land quality, as well as any efforts to

mitigate local pollution and waste.

Determine whether the location or community qualifies as a disadvantaged community according to the

Climate and Economic Justice Screening Tool (CEJST).

b) Concept Paper Technical Review Criteria for Clean Energy Manufacturing and Recycling Projects

This section describes the technical review criteria that DOE will use to evaluate concept papers proposing Clean Energy Manufacturing

and Recycling Projects.

Criterion 1: Commercial Viability

• Project schedule and time from certification to completion, based on readiness to proceed with the proposed project and reasonableness of the timeframe required for construction and commissioning of the project.

• The extent to which risk management issues and mitigation strategies are identified and addressed.

○

Strength of the proposed business plan, including market size and growth potential, market share and price competitiveness of

the facility’s product, strength of existing or prospective offtake arrangements, and the source and certainty of funding that will

be invested in the project, including equity, private financing, DOE funding, state and local incentives, and other sources.

• Strength of the proposed management plan, including the management team’s track record of success in areas relevant to the

project and corporate health of the applicant.

Criterion 2: Greenhouse Gas Emissions Impacts

• End products impact on avoidance or reduction in anthropogenic emissions of GHGs, based on:

○

Potential GHG improvement over higher-emitting incumbent technologies or systems.

○

Potential to capture or remove carbon oxides or other GHGs.

○

Potential to provide indirect emissions reductions or avoidance by enabling a reduction in energy or fuel use or the manufacturing or adoption of other low-emissions technologies (e.g., charging infrastructure to enable the adoption of electric

vehicles).

○

Potential of recycling projects to avoid or reduce emissions associated with raw materials, use, or end-of life of advanced

energy property

• The extent to which the efficiency, lifetime, recyclability, or other characteristics that reduce overall GHG emissions of the facility’s products exceed those of incumbents or competitors.

• Efforts to mitigate GHG emissions from the proposed manufacturing or recycling facility:

○

The extent to which the project involves current best-in-class manufacturing or recycling approaches, including the use of

innovative equipment, processes, and low-carbon fuels, as demonstrated through project planning documents or front-end

engineering and design studies.

○

The extent to which the project aligns with the long-term strategy of the United States to achieve net-zero emissions.

Criterion 3: Strengthening U.S. Supply Chains and Domestic Manufacturing for a Net-Zero Economy

• The extent to which the proposed project addresses current and anticipated supply chain vulnerabilities for clean energy products

that facilitate progress in line with the long-term strategy of the United States to achieve net-zero emissions.

• The extent to which the project would increase domestic production capacity and availability of clean energy products that facilitate

progress towards a net-zero economy, including a qualifying clean energy product itself or associated components or materials.

• The extent to which the proposed project addresses current and anticipated supply chain vulnerabilities for clean energy products that facilitate progress towards a net-zero economy, based on a comparison of the production capacity and the current and

anticipated gap between domestic manufacturing capacity and demand for the specified advanced energy property or materials

produced by the proposed project.

In the case of recycling projects, these technical review criteria will be evaluated based on which materials are produced at the recycling facility and evidence that those produced materials will serve as inputs to clean energy supply chains.

Criterion 4: Workforce and Community Engagement

• Job Creation and Workforce Continuity:

○

The number of domestic jobs created (both direct and indirect) (a) during completion of the project (the credit period) and

(b) during operations of the facility after it is placed in service, including jobs within energy communities (if applicable)

attained by locals or individuals previously employed by the local or regional coal industry.

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The quality and manner in which the proposed project will create and/or retain high-quality, good-paying jobs (both direct

and indirect) with employer-sponsored benefits for all classifications and phases of work.

○

The extent to which the applicant engaged key stakeholders to develop partnerships to better serve local and diverse workforce through training and support.

Ensuring Timely Project Completion Through Workforce and Community Engagement:

○

The extent of current and planned efforts to engage community and labor stakeholders, including as it relates to the ability

to execute the project on schedule and with adequate workforce.

○

The extent to which workforce recruitment and support of the community for the project have been strengthened through

benefit-sharing agreements, consideration of environmental impact, use of local resources, and improved access to employment opportunities for the local workforce.

Energy Community Transition:

○

The extent to which the application includes specific and high-quality actions to support energy communities, including

transition opportunities for workers in the coal, other energy, and automotive sectors.

○

The extent to which a project will utilize existing resources or infrastructure that previously supported the local or regional

coal industry.

Local Environmental Impacts:

○

The extent to which the proposed project accounts for its environmental impact to the surrounding community by having

clear plans to avoid or reduce local air pollution, land contamination, and/or water contamination.

○

The extent to which the application identifies specific, measurable benefits for disadvantaged communities, including energy

communities.

○

•

•

•

ii. Section 48C(e) Application for Clean Energy Manufacturing and Recycling Projects

a) Section 48C(e) Application Content for Clean Energy Manufacturing and Recycling Projects

This section describes the specific content that applicants must provide in the § 48C(e) application files and appendices for applications proposing Clean Energy Manufacturing and Recycling Projects. Template files for submitting this information will be provided

through the eXCHANGE portal.

Table: Section 48C(e) Application Content Requirements for

Clean Energy Manufacturing and Recycling Projects

Section

Project Overview

Information Required

Provide an overview of the proposed project. At a minimum, include:

• Company Overview:

○

Describe your company, including prior experience manufacturing or recycling clean energy

technologies relevant to the proposed project.

• Project Summary:

○

Describe the proposed manufacturing or recycling facility, including size, location, and other

relevant information.

○

Indicate what the investment will accomplish, including:

 Whether the project will establish, re-equip, or expand a facility.

 The specified advanced energy property, and whether the facility will manufacture or recycle

the specified advanced energy property. If the project involves more than one specified

advanced energy property, indicate the project’s primary advanced energy property, and any

additional advanced energy properties the project will produce or recycle.

 In the case of a recycling project, describe the facility’s products and the clean energy supply

chains they will support.

○

Describe in detail the equipment and processes employed at the proposed facility to manufacture

or recycle the proposed advanced energy property.

 If the proposed project re-equips or expands an existing facility, describe clearly what the

proposed project will add or change in the existing facility.

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Section

Information Required

 To clearly illustrate the proposed facility or proposed changes to an existing facility, applicants

are encouraged to submit diagrams and/or images (e.g., a detailed process flow diagram) as

appendix materials.

 Provide a list of the anticipated eligible property that will make up the qualified investment of

the qualifying advanced energy project.

Describe any significant changes to the project that have occurred since the concept paper stage.

Project Plan:

○

Commercial

Viability

• Project Management and Timeline:

○

Provide a project schedule through operation and achieving full production capacity, which

demonstrates how certification requirements will be met within two (2) years of receiving an

allocation decision from the IRS, and how the project will be placed in service within two (2)

years of such certification. Documentation supporting the project schedule should be submitted as

separate appendix materials.

○

Describe plans to ensure an adequate supply of essential inputs needed for successful operation of

the project.

○

For the following contracts and agreements, summarize key terms and conditions in the narrative

and submit copies as appendix materials. A Professional Engineer must inspect and certify the

project documents for feasibility and may be an employee of the applicant.

 Operations and Maintenance Agreement.

 Shareholders Agreement.

 Engineering, Procurement and Construction Agreement, including firm price, liquidated

damages, holdbacks, and performance guarantees, for example.

• Siting and Permitting: Explain the rationale for selection of the project site and provide

documentation supporting the applicant’s conclusion that the proposed site can fully meet all

environmental, water supply, transmission interconnection, and other necessary requirements. Include

a complete list of all federal, state, and local permits, including environmental authorizations (if

applicable) or reviews necessary to commence construction of the project. Additional documentation

that supports key claims may be provided as appendix materials, such as regulatory approvals and

signed agreements, letters of intent, or term sheets for supply and product transportation.

• Risk Management Plan: Identify project risks or challenges and any relevant strategies for risk

mitigation and management, including legal, financial, engineering, procurement, construction,

and risks. Include a discussion of natural disasters (e.g., earthquakes), climate impacts and extreme

weather patterns (e.g., tornadoes, hurricanes, heat and freezing temperatures, drought, wildfire, and

floods) that may impact the resilience/sustainability of the project.

Business Plan: Provide the following financial information for the proposed project, and market and

cost information for the facility’s products.

• Financial Information:

June 20, 2023

○

Submit a cash flow model detailing investments in and cash flows anticipated over the facility’s

expected lifetime, including a description of the methodology and all assumptions used.

○

Describe the payback period, net present value (NPV), adjusted present value (APV) and breakeven analysis for the project and other financial metrics including return on investment and return

on assets.

○

Estimate the project’s amount that will be treated as a qualified investment (as determined

under § 48C) if the project is certified to receive a credit. The applicant may use any reasonable

methodology and assumptions in estimating this amount.

○

Describe the amount of equity that will be invested in the project, including the sources of such

equity and their strengths. Provide any existing equity funding commitments or expressions of

interest from equity funding sources for the project as separate appendix materials.

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Section

Information Required

○

Describe the amount of total debt obligations that will be incurred and the funding sources of all

such debt. Include any existing debt funding commitments or expressions of interest from debt

funding sources for the project as separate appendix materials.

○

Describe any local, state, or other federal incentives or funds that are being pursued or have been

awarded for the proposed project, such as grants, loan guarantees, or tax credits. Also include a

description of any instances where any federal agencies or non-federal governmental entities have

entered into an arrangement as a customer or offtaker of the project’s products or services, or

other federal contracts, including acquisitions, leases, and other arrangements, that may indirectly

support the applicant’s proposed project.

• Market Information:

○

Describe the markets your products will serve, including the existing market size, dollar volume,

and growth potential. If the product can be sold in multiple market segments, describe each one.

○

Discuss the current and anticipated competitiveness of your market, including current competing

products and competitors.

○

Discuss your sales forecast, including details of any offtake agreements you may have to support

your project. Identify confirmed or potential customers who will purchase, lease, or otherwise

use the facility’s product. Offtake agreements and other documents provided as evidence may be

included as appendix materials.

○

Based on the above information, summarize your product’s projected market share for the next

five years including trends and projections for demand and price, growth potential (short-term and

long-term), and strategies to expand your market share (e.g., ways to circumvent market barriers).

• Cost Information:

○

Provide the estimated cost of your facility’s product and how it compares to similar technologies

or materials in the same market segment, including new and recycled products. This should be

expressed in the same units as annual production (e.g., $/watt, $/kilowatt-hour, and $/ton) per the

instructions in the 48C Application Data Sheet. Applicants should include the absolute difference

and percentage change from a reasonable domestic industry average.

○

Calculate the levelized cost of generated or stored energy, or of measured reduction in energy

consumption or GHG emissions (based on costs of the full supply chain). Instructions for

calculating levelized cost metrics are provided in Section V. Explain the methodology and

assumptions used in the § 48C(e) application narrative.

Management Plan: Provide the following information for the company and key management team

members:

• Describe the ownership structure of the company, including all beneficiaries.

• List key management and senior personnel for the project, including the names, positions or titles,

qualifications, and relevant experience. Resumes may be included as combined appendix materials,

preferably in an Adobe PDF document labeled Resumes.pdf.

• Describe the unique capabilities and expertise of the applicant and any major project partners,

including debt or equity sponsors, contractors/vendors (if known), and any other counterparty that

the applicant believes will enable the project to be successful, as well as the prior experience of the

applicant and any major project partners in similar undertakings to the proposed project.

• Summarize any pending or threatened (in writing) action, suit, proceeding, or investigation, including

any action or proceeding by or before any governmental authority, that relates to the senior/key

personnel, and the status of any appeals.

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Section

Greenhouse Gas

Emissions Impacts

Information Required

• Describe any corporate health indicators, including legal claims or liabilities, planned debt

restructuring, planned corporate actions, and other factors that could negatively affect the likelihood

of project completion. Provide a copy of audited financial statements for the applicant and other

projected funding sources for the most recently ended three (3) fiscal years, and the unaudited

quarterly interim financial statements for the current fiscal year, as separate appendix materials. If all

three years of audited statements are not available, provide all available statements and any additional

information or appendices that provide similar evidence of corporate health.

Greenhouse Gas Emissions Impacts of the Facility’s Products: At a minimum, include:

•

End Product Impacts: Describe the end-use application of facility’s products and how their use,

whether that is independently (e.g., energy efficiency equipment) or as part of a larger specified

advanced energy product (e.g., blade in wind tower) will avoid or reduce GHG emissions. Provide

product specifications to verify these claims.

○

In the case of specified advanced energy property that provides GHG reduction or avoidance over

incumbent technologies or systems, such as clean energy, clean vehicle, or efficiency products,

applicants should describe the product’s typical use in the narrative and provide quantitative

information in the Data Sheet.

○

In the case of carbon capture or removal equipment, applicants should quantify direct GHG

reductions enabled by the product in typical use in the Data Sheet.

○

In the case of electrolyzing, refining, or blending equipment, applicants should describe the fuel,

chemical, or product and its production process, including feedstocks, in the narrative and Data

Sheet.

○

In the case of specified advanced energy property that provides indirect GHG reduction or

avoidance, applicants may wish to qualitatively describe how the facility's products could

contribute to emissions reductions by reducing energy or fuel demand or accelerating adoption of

low-emissions technologies (e.g., for enabling technology such as grid components, storage, or

charging infrastructure).

○

In the case of recycling projects, applicants should qualitatively describe how the facility's

products are expected to reduce emissions through their use and by reducing raw material needs or

emissions associated with end-of-life.

• Product Performance: Provide any details about the innovation and performance of the end product

(e.g., efficiency, range, and economic life) that indicate its ability to facilitate deeper GHG emissions

reductions than leading competitors or incumbents. Applicants should substantiate such claims using

the product warranty or related information, which should be described in the narrative and may be

submitted as separate appendix materials.

Note: For applicants applying for other advanced energy projects under Appendix A(1)(i), “Other

advanced energy property designed to reduce greenhouse gas emissions as may be determined by

the Secretary”, applicants must demonstrate the reduction of GHG emissions is a necessary ultimate

outcome from the manufacture of the advanced energy property.

Greenhouse Gas Emissions from the Facility: At a minimum, include:

• Direct Emissions: Qualitatively and quantitatively characterize the anticipated sources of direct

(Scope 1) or indirect fuel- and energy-related (Scope 2) GHG emissions in the manufacturing or

recycling process. Emissions estimates should be provided in the 48C Application Data Sheet using

the methodology described in Section V; where available, input assumptions should be justified with

publicly available data and engineering studies. Explain any significant differences between direct

emissions from the facility and industry averages.

• Facility Performance: Provide any details about the manufacturing or recycling process (e.g.,

efficiency, lifetime, electrification, low-carbon fuels, etc.) that indicate its potential to result in

lower emissions than leading competitors or incumbents. Wherever possible, the applicant should

substantiate assessments of process improvements with analysis or engineering studies, which should

be described in the narrative and may be submitted as separate appendix materials, which may be

submitted as separate appendix materials.

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Section

Information Required

• Mitigation Efforts: Describe any planned efforts to mitigate GHG emissions of the proposed facility.

Strengthening U.S.

Supply Chains

and Domestic

Manufacturing for a

Net-Zero Economy

• Company Commitments and Track Record: Describe any company commitments or experience

reducing GHG emissions of manufacturing or recycling facilities.

• Output of Your Facility: Describe the proposed facility’s products and projected annual output for

each product. In the case of retrofitting, re-equipping, or expanding an existing facility, indicate how

the project will alter the facility’s annual output. Indicate whether production from the facility covers

multiple supply chain segments—processed material, subcomponents, components, systems/end

products—and how those segments interact. In the 48C Application Data Sheet, submit the relevant

production capacity information for the facility’s outputs (see Section V for a description of these

terms) and then justify each in the § 48C(e) Application narrative:

○

Annual Production.

○

Manufacturing Contribution.

○

Share of Facility Output.

○

Real-World Annual Performance.

○

Product Lifetime.

• Supply Chain Resilience: Describe how your facility’s products will help build resilience of

domestic supply chains that are critical for energy products that facilitate progress towards a net-zero

economy, from raw materials to end-of-life.

• Inputs to Your Facility: Describe key inputs needed for your manufacturing or recycling process.

Describe any known sources for your inputs, including indicating domestic sources and any current or

anticipated supply chain vulnerabilities.

Workforce and

Community

Engagement

(Submitted as

a separate PDF

document)

• End-Use Applications: Indicate whether the facility’s products will be used in multiple specified

advanced energy technologies (e.g., wind, solar, and electric grid) or multiple sectors (e.g.,

transportation, industry, and electricity). Reference any offtake or sales arrangements provided in the

Commercial Viability section to justify the end-use applications and, where possible, include these in

the appendix.

Describe your plan for contributing to job creation and ensuring project viability, timely completion,

and ultimate success by fostering a stable and supportive workforce and host community. Applicants

are encouraged to use Specific, Measurable, Achievable, Relevant, and Timely (SMART) milestones

wherever possible and where relevant. At a minimum, include:

Job Creation and Workforce Continuity: Describe the applicant’s approach to creating and

maintaining high-quality jobs for both new and incumbent workers.

• Characterize and estimate the number of jobs your project will create (e.g., mechanics and

construction workers), including both direct and indirect jobs both during completion of the project

(the credit period) and during operation of the facility after it is placed in service and any indicators of

job quality.

• Describe partnerships with apprenticeship readiness programs, or community-based workforce

training and support organizations serving displaced industrial workers, including in the coal, other

energy, and automotive sectors, and others facing systematic barriers to employment to facilitate

participation in the project’s construction and operations.

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Section

Information Required

• Summarize the applicant’s plan to attract, train, and retain a skilled and well-qualified workforce

both during completion of the project (the credit period) and during operation of the facility after it is

placed in service. A collective bargaining agreement, labor-management partnership, or other similar

agreement would provide evidence of such a plan. Alternatively, applicants may describe:

○

Wages, benefits, and other worker supports to be provided as benchmarking against prevailing

wages for construction and local median wages for other occupations;

○

Commitments to invest in workforce education and training, including measures to reduce

attrition, increase productivity from a committed and engaged workforce, and support the

development of a resilient, skilled, and stable workforce for the project; and

○

Efforts to engage employees in the design and execution of workplace safety and health plans.

• Describe employees’ ability to organize, bargain collectively, and participate, through labor

organizations of their choosing, in decisions that affect them. This contributes to the effective conduct

of business and facilitates amicable settlements of any potential disputes between employees and

employers, providing assurances of project efficiency, continuity, and multiple public benefits. In the

description, explain whether workers can form and join unions of their choosing, and how they will

have the opportunity to organize with the purposes of exercising collective voice in the workplace.

Ensuring Timely Project Completion Through Workforce and Community Engagement: Describe

current and planned efforts to engage with community and labor stakeholders, including as it relates to

strengthening support of the community, workforce recruitment, and the ability to execute the project on

schedule and with adequate workforce.

• Provide a comprehensive list of stakeholders that the project plans to engage from local governments,

Tribal governments, labor unions, and community-based organizations.

• Describe current and planned efforts to engage with listed stakeholders, including as it relates to the

ability to complete the project in the shortest time and with adequate workforce.

• Describe current and planned efforts to ensure availability of the workforce needed to successfully

complete the project and place it in service in a timely manner, including through training programs

that serve workers currently underrepresented in the sector.

• Describe any activities to strengthen support of the community such as through benefit-sharing

agreements, consideration of environmental impact, and use of local resources. Discussions should

reference Workforce and Community Engagement Agreements, or any plans to develop such

agreements, from representative organizations reflecting substantive engagement and feedback on

applicant’s approach to community and labor engagement. Examples of such agreements are Good

Neighbor Agreements/Community Benefits Agreements, Collective Bargaining Agreements, Project

Labor Agreements or Community Workforce Agreements. Actual agreements must be provided in the

submission package as appendix files.

Energy Community Transition: Describe the extent to which the project will support energy

communities.

• Describe plans to utilize existing local and regional resources that previously supported the local or

regional coal, other energy, or automotive industries, including through transition opportunities for

workers in the coal, other energy, and automotive sectors into clean energy industries.

• If applicable, include discussion on plans to repurpose existing infrastructure/assets that have been

abandoned due to the closing of a coal mine or coal plant.

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Section

Information Required

Local Environmental Impacts: Describe the impact of your project on local air, water, and/or land

quality, as well as any efforts to mitigate local pollution and waste.

• Discuss any anticipated negative and cumulative environmental impacts of the project, including

impacts on local air, water, and/or land quality. Describe any efforts to mitigate local pollution and

waste.

• Determine whether the location or community qualifies as a disadvantaged community according to

the Climate and Economic Justice Screening Tool (CEJST).

• Within the context of cumulative environmental impacts, applicants should use the U.S.

Environmental Protection Agency’s Environmental Justice Screening and Mapping (EJSCREEN) tool

(https://www.epa.gov/ejscreen) to quantitatively discuss existing environmental impacts in the project

area.

• If anticipated project benefits will flow to an applicable disadvantaged community, identify applicable

benefits that are quantifiable, measurable, and trackable, such as:

○

(1) A decrease in energy burden;

○

(2) A decrease in environmental exposure and burdens;

○

(3) An increase in access to low-cost capital;

○

(4) An increase in high-quality job creation, the clean energy job pipeline, and job training for

individuals;

○

(5) Increases in clean energy enterprise creation and contracting (e.g., through investment in

underserved and underrepresented businesses);

○

(6) Increases in energy democracy, including community ownership;

○

(7) Increased parity in clean energy technology access and adoption; and

○

(8) An increase in energy resilience.

• In addition, applicants should also discuss how the project will maximize all of the benefits listed

above. Describe how and when anticipated benefits are expected to flow to the disadvantaged

community. For example, will the benefits be provided directly within the disadvantaged communities

identified, or are the benefits expected to flow in another way? Further, will the benefits flow during

project development or after project completion, and how will applicant track benefits delivered?

b) Section 48C(e) Application Technical Review Criteria for Clean Energy Manufacturing and Recycling Projects

This section describes the technical review criteria that DOE will use to evaluate § 48C(e) applications proposing Clean Energy

Manufacturing and Recycling Projects.

Criterion 1: Commercial Viability

• Project schedule and time from certification to completion:

○

Readiness to proceed with the proposed project as evidenced by firmness of site selection and progress towards securing

required permits, contracts, reviews, and agreements; and

○

Reasonableness of the timeframe required for construction and commissioning of the project, including interim milestones

and overall timeline.

• The extent to which risk management issues and mitigation strategies are identified and addressed, including the level of contingency proposed to address risk.

• Strength of the proposed business plan, including:

○

The potential for commercial deployment, based on estimates of market share, market growth potential, and price competitiveness of the product.

○

The source and certainty of funding for the equity that will be invested in the project, including private financing, DOE

funding, state and local incentives, and other sources.

○

The strength of key arrangements, such as financing, acquisition/supply strategy, and power purchase agreements for the

proposed project, as well as offtake (sales) arrangements for the facility’s products.

○

The degree to which the application justifies the proposed project’s economic viability, sustainability, and potential growth.

○

The degree to which the investment is profitable, based on the proposed budget and spend plan, as well as described cash

flow analysis of the project.

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The levelized cost of generated or stored energy, or of measured reduction in energy consumption or GHG emission (or

similar metric) for the facility’s products, compared to similar technologies or materials within the same market segment.

• Strength of the proposed management plan, including the management team’s track record of success in areas relevant to the

project and corporate health of the applicant.

In assessing each item above, the following will be considered: (a) the comprehensiveness, specificity, and accuracy of the information and plans provided, (b) the reasonableness of assumptions used in making estimations and projections, and (c) the extent

to which the applicant demonstrates an understanding of relevant risks and the quality of the strategies put forward to mitigate and

manage those risks.

○

Criterion 2: Greenhouse Gas Emissions Impacts

• The potential for the facility’s products to facilitate a reduction in anthropogenic emissions of GHGs, based on: Emissions reductions associated with the potential to displace higher-emitting incumbent technologies, fuels, or materials, or to capture carbon

dioxide that would otherwise enter or remain in the atmosphere. The extent to which the product enables the manufacturing or

adoption of other low-emissions technologies (e.g., charging infrastructure to enable the adoption of electric vehicles, critical

materials to enable the manufacturing of other clean energy technologies, or electric grid modernization equipment to advanced

aspects of the clean energy transition). End products impact on avoidance or reduction in anthropogenic emissions of GHGs,

based on:

○

Potential GHG improvement over higher-emitting incumbent technologies or systems.

○

Potential to capture or remove carbon oxides.

○

Potential to provide indirect emissions reductions or avoidance by enabling a reduction in energy or fuel use or manufacturing or adoption of other low-emissions technologies (e.g., charging infrastructure to enable the adoption of electric vehicles).

○

Potential of recycling projects to avoid or reduce emissions associated with raw materials, use, or end-of life of advanced

energy property

• The extent to which technological innovation in the efficiency, economic life, recyclability, or other characteristics that reduce

overall GHG emissions of the facility’s products exceed those of incumbents or competitors.

• The extent to which the project involves current best-in-class manufacturing or recycling approaches, including the use of innovative equipment, processes, and low-carbon fuels, as demonstrated through project planning documents, front-end engineering

and design studies, or otherwise.

• Plans to align with the national target of net-zero emissions by 2050, including efforts to reduce both direct (Scope 1) and indirect, upstream fuel- and energy-related (Scope 2) emissions over the lifetime of the facility.

• Efforts to reduce emissions in the upstream supply chain (e.g., through contracts with low-emissions suppliers).

• Activities to monitor facility emissions and energy use, including through any relevant voluntary or required reporting protocols

(e.g., EPA’s Greenhouse Gas Reporting Program).

Criterion 3: Strengthening U.S. Supply Chains and Domestic Manufacturing for a Net-Zero Economy

• The extent to which the proposed project addresses current and anticipated supply chain vulnerabilities for clean energy products

that facilitate progress towards a net-zero economy.

• The extent to which the project would increase domestic production capacity and availability of clean energy products that

facilitate progress towards a net-zero economy, including a qualifying clean energy product itself or associated components

or materials. The extent to which the proposed project addresses current and anticipated supply chain vulnerabilities for clean

energy products that facilitate progress towards a net-zero economy, based on a comparison of the production capacity and the

current and anticipated gap between domestic manufacturing capacity and demand for the specified advanced energy property or

materials produced by the proposed project.

• The extent to which the project will support and encourage follow-on supply chain investments in the region.

• The extent to which the project supports the development of U.S. capacity to meet federal, state, or local domestic content

requirements or incentives, such as those in the §§ 30D, 45/45Y, or 48/48E federal tax credits.

• The extent to which the project promotes long-term U.S. manufacturing competitiveness or technology leadership in the transition to a net-zero economy, based on the projected commercial deployment of the facility’s products; the feasibility of delivering

market-ready products at the stated annual production levels; the efficiency, emissions, or productivity of the facility beyond the

state-of-the-art; and the potential to avoid or reduce end-of-life waste from the facility or final product through the use of alternative processes, technologies, or materials.

Criterion 4: Workforce and Community Engagement

• Job Creation and Workforce Continuity:

○

The number of domestic jobs created (both direct and indirect) (a) during completion of the project (the credit period) and

(b) during operation of the facility after it is placed in service, including jobs within energy communities (if applicable)

attained by locals or individuals previously employed by the local or regional coal industry.

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The quality and manner in which the proposed project will create and/or retain high- quality, good-paying jobs (both direct

and indirect) with employer-sponsored benefits for all classifications and phases of work.

○

The extent to which the applicant engaged key stakeholders to develop partnerships to better serve local and diverse workforce through training and support.

○

The extent to which the project provides employees with the ability to organize, bargain collectively, and participate, through

labor organizations of their choosing, in decisions that affect them and that contribute to the effective conduct of business

and facilitates amicable settlements of any potential disputes between employees and employers, providing assurances of

project efficiency, continuity, and multiple public benefits.

○

The extent to which applicant demonstrates that they are a responsible employer, with ready access to a sufficient supply of

appropriately skilled labor, and an effective plan to minimize the risk of labor disputes or disruptions.

Ensuring Timely Project Completion Through Workforce and Community Engagement:

○

The extent of current and planned efforts to engage community and labor stakeholders, including as it relates to the ability

to execute the project on schedule and with adequate workforce.

○

The extent to which workforce recruitment and support of the community for the project have been strengthened through

benefit-sharing agreements, consideration of environmental impact, use of local resources, and improved access to employment opportunities for the local workforce.

○

The extent to which the applicant demonstrates community and labor engagement to date that results in support of the community for the proposed project and availability and maintenance of the necessary workforce.

○

The extent to which the applicant has a clear and appropriately robust plan to engage—ideally through a clear commitment

to negotiate an enforceable Workforce and Community Agreements—with labor unions, Tribal entities, and community-based organizations that support or work with disadvantaged communities and other affected stakeholders.

○

The extent to which the applicant has considered accountability to affected workers and community stakeholders, including those most vulnerable to project activities with a plan to publicly share Workforce and Community Engagement plan

commitments.

○

Extent to which a project will generate economic prosperity in the local community.

Energy Community Transition:

○

The extent to which the application includes specific and high-quality actions to support energy communities, including

through transition opportunities for workers in the coal, other energy, and automotive sectors into clean energy transition

opportunities.

○

The extent to which a project will utilize existing local and regional resources that previously supported the local or regional

coal industry or repurpose existing infrastructure/assets that have been abandoned due to closing of a coal mines or coal

plant.

Local Environmental Impacts:

○

The extent to which the proposed project accounts for its environmental impact to the surrounding community by having

clear plans to avoid or reduce local air pollution, land contamination, and/or water contamination.

○

The extent to which the applicant identifies specific, measurable benefits for disadvantaged communities, how the benefits

will flow to disadvantaged communities, and how negative environmental impacts affecting disadvantaged communities

would be mitigated.

○

•

•

•

B. Greenhouse Gas Emission Reduction Projects

Priority Areas for Greenhouse Gas Emission Reduction Projects

All Greenhouse Gas Emission Reduction Projects described in Appendix A(2) of this guidance are eligible to apply for a § 48C allocation and will be evaluated by DOE against the four technical review criteria reflecting overall program objectives:

•

•

•

•

Criterion 1: Commercial Viability

Criterion 2: Greenhouse Gas Emissions Impacts

Criterion 3: Strengthening U.S. Supply Chains and Domestic Manufacturing for a Net-Zero Economy

Criterion 4: Workforce and Community Engagement

When evaluating the Greenhouse Gas Emissions Impacts criterion, DOE will give priority to projects that deeply reduce emissions to

levels significantly below a reasonable domestic industry average and the 20% reduction eligibility requirement stated in Appendix

A(2).

When evaluating the Strengthening U.S. Supply Chains and Domestic Manufacturing for a Net-Zero Economy criterion, DOE will

give priority to projects that advance the commercial viability and uptake of replicable decarbonization efforts in major industrial

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applications (e.g., cement, iron and steel, aluminum, chemicals, and other energy-intensive manufacturing sectors), including innovative solutions, and to projects that align with one or more cross-cutting industrial decarbonization techniques, such as energy efficiency, electrification, low-carbon fuels, feedstocks, and energy sources (LCFFES), material efficiency or substitution, and carbon

capture utilization and storage (CCUS).

i. Concept Papers for Greenhouse Gas Emission Reduction Projects

a) Concept Paper Content for Greenhouse Gas Emission Reduction Projects

This section describes the specific content that applicants must provide in the concept paper files for applications proposing Greenhouse

Gas Emission Reduction Projects. Template files for submitting this information will be provided through the eXCHANGE portal.

Table: Concept Paper Content Requirements

for Greenhouse Gas Emission Reduction Projects

Section

Information Requested

Project Overview Provide an overview of the proposed project. At a minimum, include:

• Company Overview: Describe your company and existing industrial or manufacturing capabilities.

• Project Scope: Describe the eligible industrial or manufacturing facility to be re-equipped, including

size, location, and other relevant information such as equipment and processes employed. Indicate the

proposed changes supported by the project, including a list of the anticipated eligible property that will

make up the qualified investment of the qualifying advanced energy project: low- or zero-carbon process

heating systems; carbon capture, transport, utilization, or storage systems; energy efficiency and reduction

in waste; or other industrial technology to be installed to reduce the facility’s GHG emissions by at least

20%. Indicate whether the retrofit project will achieve the required 20% reduction in direct (Scope 1)

emissions facility-wide, indirect fuel- and energy-related (Scope 2) emissions facility-wide, subunit

emissions, or some combination thereof. Describe any anticipated changes to production capacity or

output as a result of the retrofit.

Commercial

Viability

• Emissions: Describe your baseline annual emissions from the year prior to the retrofit compared to peers

in your industry, and the anticipated emissions reductions to be achieved through the measures associated

with the proposed project. The latter should be provided in both absolute and percentage terms, relative to

your facility’s baseline emissions.

Project Plan:

• Project Timeline: Provide planned dates to begin re-equipping the industrial or manufacturing facility,

and how many months it will take to commence operations and achieve full production capacity with the

reduced emissions profile once certified.

• Siting and Permitting: Explain the rationale for selection of the project site and indicate the current status

of any required siting and permitting.

• Risk Management Plan: Identify project risks or challenges and any relevant strategies for risk mitigation

and management, such as legal, financial, engineering, procurement, construction, physical climate, and

environmental risks.

Business Plan:

• Financial Information: Describe sources of financing for this project, including the amount and strength

of funding sources that will provide the equity to be invested in the project; the amount of total debt

obligations that will be incurred and the funding sources of all such debt, and the dollar amount of

incentives or funds pursued or awarded from local and state governments, as well as other federal

incentives pursued or awarded. If applicable, describe any existing or prospective offtake arrangements

for the project’s products.

• Cost Information: Describe the cost competitiveness of the facility’s products, as demonstrated through a

comparison of the estimated price of your facility’s product against similar products in the same market

segment.

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Information Requested

Management Plan:

• Describe the key management team members who will design, construct, permit, and execute the project.

Include a description of relevant industry experience of the top-tier executives responsible for the success

of the project.

Greenhouse

Gas Emissions

Impacts

• Describe any corporate health indicators, including legal claims or liabilities, planned debt restructuring,

planned corporate actions, and other factors that could negatively affect the likelihood of project

completion.

• Emissions Impacts: Quantify the direct (Scope 1) and indirect fuel- and energy-related (Scope 2) GHG

emissions associated with the qualified investment immediately before and after the retrofit project.

Express post-retrofit emissions in both absolute and relative (% reduction) terms. Where possible, justify

these estimates with publicly available data (e.g., EPA Greenhouse Gas Reporting Protocol [GHGRP]

reporting) and engineering studies. Explain any significant differences between direct emissions from the

facility immediately before the retrofit and a reasonable domestic industry average.

• Process Improvements: Describe the portions of the manufacturing process that will be re-equipped by

the project.

Strengthening

U.S. Supply

Chains and

Domestic

Manufacturing

for a Net-Zero

Economy

Workforce and

Community

Engagement

(Submitted as

a separate PDF

document)

• Best-In-Class Technologies: Describe the equipment used to facilitate the GHG emissions reductions,

and the extent to which best-in-class technologies are deployed.

• Existing Capacity: Describe and provide the annual output for all of the facility’s products prior to the

retrofit project. In the Concept Paper Data Sheet, submit the relevant annual production information.

• Innovation and U.S. Competitiveness: Describe how the retrofit project can pave the way for

decarbonizing heavy industry by advancing the commercial viability and uptake of replicable

decarbonization approaches in major industrial applications, including innovative solutions.

• Supporting U.S. Supply Chains:

This text is long and has been trimmed here. Open the source document for the complete record.