42 U.S.C. § 7256c: Milestone-based…

Summary

The Secretary of Energy may run competitive demonstration projects that only give grant money after teams meet set technical and financial milestones. The Department will ask eligible groups to apply with a business plan (which can include plans for manufacturing and fixing supply chains), a plan to get private investment, and proposed milestones with timelines and total costs. The Department will give a fixed award amount to projects that meet the agreed milestones or for expenses the Department verifies as reimbursable. Projects must share costs as required by law. Awardees pay costs until milestones are met or expenses are verified. If a project fails to meet milestones, the Department can end the award and reuse the funds. The Secretary must consult outside experts during reviews and must report each year on these projects.

Title 42, §7256c

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(a)In general

Acting under section 7256(g) of this title, notwithstanding paragraph (10) of such section, the Secretary of Energy (in this section referred to as the “Secretary”) may carry out demonstration projects as a milestone-based demonstration project that requires particular technical and financial milestones to be met before a participant is awarded grants by the Department through a competitive award process.

(b)Requirements

In carrying out milestone-based demonstration projects under the authority in paragraph (1), the Secretary shall, for each relevant project—

(1)request proposals from eligible entities, as determined by the Secretary, including—

(A)a business plan, that may include a plan for scalable manufacturing and a plan for addressing supply chain gaps;

(B)a plan for raising private sector investment; and

(C)proposed technical and financial milestones, including estimated project timelines and total costs; and

(2)award funding of a predetermined amount to projects that successfully meet proposed milestones under paragraph (1)(C) or for expenses deemed reimbursable by the Secretary, in accordance with terms negotiated for an individual award;

(3)require cost sharing in accordance with section 16352 of this title; and

(4)communicate regularly with selected eligible entities and, if the Secretary deems appropriate, exercise small amounts of flexibility for technical and financial milestones as projects mature.

(c)Awards

For the program established under subsection (a)—

(1)an award recipient shall be responsible for all costs until milestones are achieved, or reimbursable expenses are reviewed and verified by the Department; and

(2)should an awardee not meet the milestones described in subsection (a), the Secretary or their designee may end the partnership with an award recipient and use the remaining funds in the ended agreement for new or existing projects carried out under this section.

(d)Project management

In carrying out projects under this program and assessing the completion of their milestones in accordance with subsection (b), the Secretary shall consult with experts that represent diverse perspectives and professional experiences, including those from the private sector, to ensure a complete and thorough review.

(e)Report

In accordance with section 16391a(a) of this title, the Secretary shall report annually on any demonstration projects carried out using the authorities under this section.

Editorial Notes

Codification Section was enacted as part of the Energy Act of 2020, and not as part of the Department of Energy Organization Act which comprises this chapter.

§7256c Milestone-based Demonstration Projects

Summary

Title 42, §7256c

Notes & Related Subsidiaries

Editorial Notes

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