Project Overview and Schedule

o Describe your company and project team, including key personnel and any subcontractors on the project.

o Describe whether the project will establish, re-equip, or expand a facility; whether the facility will support the manufacturing, processing, refining, or recycling of specified advanced energy property; and the extent to which innovative equipment and/or processes will be employed.

o Describe the status of the project and provide any additional details that are helpful to understand the project schedule.

o List local, state, and/or federal permits that are required for this project and specify which of these permits you already possess. For any permits you have yet to obtain, describe the remaining steps and provide an estimated timeline for their acquisition.

Commercial Viability

o Describe the specified primary advanced energy property that will be produced by the facility, including how many units of specified advanced energy property will be produced annually and any technological or cost advantages over product competitors.

o Provide an estimate of annual market demand for the facility’s product over the next 5 to 10 years.

o Describe the primary or target customers for your facility’s product and the details of any existing offtake agreements or other demand commitments (e.g., with whom, for how many units, and for how long).

o Describe the different sources of financing for this project, differentiating between secured financing and planned or expected financing. Describe the capital structure (e.g., debt/equity ratio) if multiple sources of capital will be used. If financing using the company’s own funds, specify the amount of cash available to support this project.

o Describe anticipated legal, financial, engineering, procurement, construction, and operational risk(s) that the project may experience. Explain what actions the project team will implement to mitigate these risks and achieve execution and commercial success.

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

o Describe the supply chain segment that your project’s specified advanced energy property will contribute to. Explain whether your project will mitigate current challenges that the U.S. is experiencing in maintaining a secure domestic supply chain, based on where the product is manufactured today and a comparison between the proposed manufacturing capacity and current and projected market demand.

Greenhouse Gas Emissions Impacts

o Describe the impact of your facility’s product and/or the technologies the product will enable on greenhouse gas emissions.

Workforce and Community Engagement

o Provide the anticipated geographical location of the eligible manufacturing, processing, refining, or recycling facility, including the census tract the project is located in. Explain why you selected the project site.

o Does the location qualify as a 48C energy community? (see Appendix C for the full list of 48C energy community Census tracts)

o Does the location or community qualify as a disadvantaged community according to the Climate and Economic Justice Screening Tool (CEJST)?

o Does the location or community qualify as a disadvantaged community according to a different federal, state, or local data tool? If yes, indicate which one(s).

o If located in an energy community, describe the extent to which the project will (1) support transition opportunities for workers in the coal, automotive, and other energy sectors, and (2) use existing infrastructure in energy transition communities.

o Describe the extent to which the project will secure job quality (e.g., wages, benefits, health and safety at the workplace, affirmative support of collective bargaining).

o Describe what labor and community engagement has been completed and/or is planned. Summarize any formal agreements that are planned or have been executed (e.g., Project Labor Agreements, Community Benefits Agreements, Collective Bargaining Agreements).

o Describe any pollutants that the project will introduce to the local community, and explain what specific, measurable steps the project is taking beyond compliance with environmental law to mitigate local environmental impact.

Project Overview and Schedule

o Describe your company and project team, including key personnel and any subcontractors on the project.

o Describe the retrofit project, including the equipment, technologies, or approaches the project will use to reduce greenhouse gas emissions from the industrial or manufacturing facility (e.g., low- or zero-carbon process heat systems, energy efficiency equipment, etc.). Explain the extent to which innovative equipment and/or processes will be employed.

o Describe the status of the project and provide any additional details that are helpful to understand the project schedule.

o List local, state, and/or federal permits that are required for this project. Specify which of these permits you already possess. For any permits you have yet to obtain, provide an estimated timeline for their acquisition.

Greenhouse Gas Emissions Impacts

o Describe the impacts of the project on the facility’s Scope 1 greenhouse gas emissions.

o Describe the impacts of the project on the facility’s Scope 2 greenhouse gas emissions.

o Explain how the project will achieve a 20% reduction in greenhouse gas emissions, including interactions between Scope 1 and Scope 2 emissions (e.g., due to electrification). Estimate the greenhouse gas emissions reductions that will be achieved by the project in both absolute (e.g., million metric tons per year) and percentage terms.

o Provide an estimate of the levelized cost of measured reduction in GHG emissions, based on total project costs.

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

o Describe the extent to which the employed equipment, technologies, or approaches could be applied to reduce greenhouse gas emissions beyond the specific project location, within or across sectors.

Commercial Viability

o Describe the facility’s outputs, including how many units are produced annually today. Explain any anticipated impacts of the retrofit project on annual production from the facility.

o Describe the primary or target customers for your facility’s products and the details of any existing offtake agreements or other demand commitments for the lower-carbon product (e.g., with whom, for how many units, and for how long).

o Describe how the retrofit project will impact the price of your product and provide an estimated price of your facility’s products after the project is completed. Describe how the price of your lower-carbon product will compare to similar technologies or materials in the same market segment, including conventional and lower-carbon products.

o Describe the different sources of financing for this project, differentiating between secured financing and planned or expected financing. Describe the capital structure (e.g. debt/equity ratio) if multiple sources of capital will be used. If financing using the company’s own funds, specify the amount of cash available to support this project.

o Describe anticipated legal, financial, engineering, procurement, construction, and operational risk(s) that the project may experience. Explain what actions the project team will implement to mitigate these risks and achieve execution and commercial success.

Workforce and Community Engagement

o Provide the anticipated geographical location of the project, including the census tract (see Appendix C) the project is located in.

o Does the location or community qualify as a disadvantaged community according to the Climate and Economic Justice Screening Tool (CEJST)?

o Does the location or community qualify as a disadvantaged community according to a different federal, state, or local data tool? If yes, indicate which one(s).

o Does the location qualify as a 48C energy community?

o If located in an energy community, describe the extent to which the project will (1) support transition opportunities for workers in the coal, automotive, and other energy sectors, and (2) use existing infrastructure in energy transition communities.

o Describe the impact of the project on jobs at the facility, including jobs associated with the retrofit and the extent to which the retrofit will retain or create jobs in manufacturing.

o Describe the extent to which the project will secure job quality (e.g., wages, benefits, health and safety at the workplace, affirmative support of collective bargaining).

o Describe what labor and community engagement has been completed and/or is planned. Summarize any formal agreements that are planned or have been executed (e.g., Project Labor Agreements, Community Benefits Agreements, Collective Bargaining Agreements).

o Describe any pollutants that the project will introduce to the local community, and explain what specific, measurable steps the project is taking beyond compliance with environmental law to mitigate local environmental impact.

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.

Describe the proposed facility, including anticipated number of employees, and geographic location.

Indicate the objectives of the investment or project, including:

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

o The specified advanced energy property or project, and whether the facility will manufacture, process, refine, 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.

o In the case of a recycling project, describe the facility’s products and the clean energy supply chains they will support.

Describe the equipment and processes employed at the proposed facility to manufacture or recycle the proposed advanced energy property.

o 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.

o 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 Management and Timeline

Provide a project schedule from construction 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.

Describe plans or strategies in place to ensure sufficient provision of crucial resources required for the project’s successful execution.

Summarize status of the Engineering, Procurement, Construction Agreements, and Operations and Maintenance Agreements.

Explain the rationale for selecting the project site and illustrate the site can fully meet all environmental, water supply, transmission interconnection, and other necessary requirements.

Summarize the status and plans, including timeline to secure all required permits such as all federal, state, and local permits, including environmental authorizations (if applicable) or reviews necessary to commence construction of the project.

Identify project risks or challenges—including legal, financial, engineering, procurement, construction, and operational risks—and any relevant mitigation strategies.

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.

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 break-even 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.

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

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.

o 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.

Describe the markets your products will serve, including the existing product market size and company market share in dollars and volume, and growth potential for the next 5 to 10 years.

Discuss the current and anticipated competitiveness of your product in the next 5 to 10 years, including competing products and competitors. 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), and applicants should include the absolute difference and percentage change from a reasonable domestic industry average.

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.

For the facility’s product, discuss the levelized cost of generated or stored energy (LCOE), or of GHG emissions abatement (LCEA), based on costs of the full supply chain. The reported LCOE/LCEA should assume that the facility’s products are part of a final clean energy installation and, where appropriate, be based on the financial and resource assumptions provided in the 48C Application Data Sheet. LCOE should be expressed in nominal terms and should not include any federal, state, or other financial incentives. The following information should be provided as documentation:

o Brief description of the methodology used as the basis for the calculation.

o Identification and brief rationale for the source of key values used in the calculation, including capital or first costs, operating and maintenance costs, prices of commodity fuels or feedstocks, and carbon emissions associated with the operation of the end-use energy product.

o Justification for any use of a resource-related parameter (e.g., capacity factor) different than the national averages provided in the data sheet.

o In the case of LCEA, identification and brief rationale for the key values associated with the baseline energy mix, including the cost of generation and carbon emissions.

o Explanation of any factors impacting the levelized cost that could not be quantified and included in the calculation, and their potential directional effect on the resulting cost (i.e., increase or decrease).

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.

Describe the unique capabilities and expertise of the applicant and any major project partners.

Include 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 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.

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.

Describe the end-use application of the facility’s products and how their use will avoid or reduce GHG emissions. 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. Quantitative information regarding GHG emissions reductions enabled by the facility’s product in typical use should be provided in the Data Sheet.

o Note: For applicants applying for other advanced energy projects under section 1.1.i.(ii) of Appendix A, Other advanced energy property designed to reduce greenhouse gas emissions as may be determined by the Secretary, applicants must demonstrate a reduction of GHG emissions is an outcome of the manufacture of the advanced energy property.

Depending on the nature and application of the advanced energy property, applicants may choose to include the following information:

o For facilities that produce critical materials, components of a large specified advanced energy product (e.g., blade in a wind tower), or technologies that provide indirect GHG emissions reductions (e.g., grid components, storage, or charging infrastructure), applicants should qualitatively describe the emissions impacts of the clean energy technologies that are enabled by the facility’s products. Applicants should include internal or external analysis to substantiate indirect emissions benefits.

o In the case of advanced energy property that reduces GHG emissions relative to incumbent technologies (e.g., clean vehicle technologies compared to conventional vehicle technologies), applicants should describe the assumptions associated with their estimated emissions impacts, including anticipated market shares, relative emissions intensities, etc.

o 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.

o In the case of advanced energy projects under section 1.1i of Appendix A, Other advanced energy property designed to reduce greenhouse gas emissions as may be determined by the Secretary, “low carbon energy intensive materials,” applicants should report emissions and carbon intensity levels using facility-specific, material/product-specific cradle-to-gate Type III (third-party verified) Environmental Product Declarations (EPDs), in line with the specifications found in EPA’s interim determination for the Buy Clean initiative for those relevant products.¹ The projects should reduce carbon intensity on a life cycle basis by at least 30% compared to an appropriate industry-specific benchmark.

Qualitatively and quantitatively characterize the anticipated sources of Scope 1 or Scope 2 GHG emissions (defined in Section 2.2, Glossary of Terms) in the manufacturing, processing, refining, or recycling process. Emissions estimates should be provided in the 48C Application Data Sheet using the methodology described in Section 2.6, Additional Application Materials 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.

Provide any details about the manufacturing, processing, refining, 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 descriptions of recent analysis or engineering studies.

Indicate whether production from the facility covers multiple supply chain segments—processed material, subcomponents, components, systems/end products—and how those segments interact.

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.

For Critical Material projects, describe whether the facility’s products align with U.S. federal, state, or local domestic content requirements, such as those in the § 30D tax credit. Reference any offtake or sales arrangements provided in the Commercial Viability Criterion section to justify the end-use applications.

In the 48C Application Data Sheet, submit the relevant production capacity information for the facility’s outputs and justify each in the § 48C(e) Application narrative.

o Annual production capacity includes yield loss and throughput data wherever applicable and possible.

o Manufacturing Contribution identifies the value added in the production of the facility’s output, as a fraction. Applicants should transparently state and justify current and future pricing assumptions for all significant value chain segments, including the product produced at the proposed facility.

o Share of Facility Output represents the portion of the facility output that was used in the production of eligible clean energy products as opposed to other applications. Where possible, applicants manufacturing multiple products (or products with multiple applications) should utilize offtake or sales agreements to demonstrate the portion that will go to eligible applications.

o Deployed product lifetime represents the service lifetime of the facility’s output (not the lifetime of the facility itself). The applicant should provide and substantiate assumptions with market reports and/or field data, where relevant.

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. For instance, critical materials producers intending to serve the battery market should indicate the extent to which their project supports the electric vehicle or stationary energy storage supply chains, as opposed to consumer electronics.

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.

Describe the applicant’s approach to creating and maintaining high-quality jobs for both new and incumbent workers. Characterize and estimate the number and quality of jobs your project will create (e.g., mechanics and construction workers).

o Include 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, registered apprenticeship programs, or community-based workforce training and support organizations serving displaced industrial workers.

o Include the coal, other energy, and automotive sectors, and others facing systematic barriers to employment to facilitate participation in the project’s construction and operations.

Summarize the applicant’s plan to attract, train, and retain a skilled and well-qualified workforce both during construction/completion of the project (the credit period) and during operations/production activities of the facility after it is placed in service.

o A collective bargaining agreement, labor-management partnership, or other similar agreement would provide evidence of such a plan. Alternatively, or additionally, applicants may describe:

Wages, benefits, and other worker supports to be provided as benchmarked at or above prevailing wages for construction and the upper quartile of wages for the occupation and industry for operations/production²;

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, including specific efforts to recruit, train, and retain workers underrepresented in the sector, local workers, and others facing systematic barriers to employment with measurable goals to achieve these outcomes; and

Efforts to engage employees in the design and execution of workplace safety and health plans.

Describe employer commitments to support employees’ ability to organize, bargain collectively, and participate, through labor organizations of their choosing, in decisions that affect them. This could include remaining neutral during any union organizing campaigns, permitting union recognition through card check (as opposed to requiring union elections), willingness to enter into binding arbitration to settle first contracts, refraining from holding captive audience meetings, or other supportive measures.

Provide a comprehensive list of stakeholders that the project has engaged or 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 a timely and effective manner 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 any existing or draft agreements, commitments or plans to develop agreements such as Good Neighbor Agreements/Community Benefits Agreements, Collective Bargaining Agreements, Project Labor Agreements or Community Workforce Agreements. Existing agreements must be provided in the submission package as appendix files.

Describe specific actions to support energy communities, including transition opportunities for workers in the coal, other energy, and automotive sectors. Discussion should reference engagement with unions, workforce boards, and/or community-based workforce training and support organizations serving displaced industrial workers.

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.

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.

Discuss how the project will maximize all 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?

Describe the eligible industrial or manufacturing facility to be retrofitted, including, anticipated number of employees, geographical location, baseline emissions compared to peers in your industry.

Include a detailed description of the equipment and processes employed at the proposed facility.

Indicate which technologies or processes will be pursued to reduce the facility’s GHG emissions by at least 20%, including low- or zero-carbon process heating systems; carbon capture, transport, utilization, or storage systems; energy efficiency and reduction in waste; or other industrial technology.

Estimate the project’s anticipated emissions reductions in both absolute and percentage terms (relative to your facility’s baseline emissions). Indicate whether the retrofit project will achieve the required 20% reduction in (a) Scope 1 emissions (defined in Section 2.2, Glossary of Terms), Scope 2 emissions (defined in Section 2.2, Glossary of Terms), or total (Scope 1 and Scope 2) emissions, and (b) subunit emissions or facility wide emissions.

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

Provide a project schedule from construction 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.

Describe plans or strategies in place to ensure sufficient provision of crucial resources required for the project’s successful execution.

Summarize status, engineering, procurement, construction agreements, and Operations and Maintenance Agreements.

Explain the rationale for selecting the project site and illustrate that the site can fully meet all environmental, water supply, transmission interconnection, and other necessary requirements.

Summarize the status and plans to secure all required permits such as all federal, state, and local permits, including environmental authorizations (if applicable) or reviews necessary to commence construction of the project.

Identify project risks or challenges and any relevant mitigation strategies.

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.

Describe the financial viability of the project and provide supporting metrics such as payback period, net present value (NPV), or return on investment and return on assets.

Estimate the project‘s 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.

Calculate the levelized cost of measured reduction in GHG emissions (based on costs of the full supply chain) that will be enabled by the project. Instructions for calculating levelized cost metrics are provided in Section 2.6, Additional Application Materials.

Explain the methodology and assumptions used in the § 48C(e) application narrative.

Discuss the current and anticipated competitiveness of your product in the next 5 to 10 years, after retrofitting and how it compares to similar technologies or materials in the same market segment, including conventional and lower-carbon 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.

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.

Describe the unique capabilities and expertise of the applicant and any major project partners.

Include 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 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.

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.

Describe the portions of the industrial or manufacturing process that will be re-equipped by the project, the nature of the improvements, and how the improvements drive emissions reductions. Include a description of the extent to which best-in-class technologies are deployed.

Describe and quantify the Scope 1 and Scope 2 GHG emissions (defined in Section 2.2, Glossary of Terms) of the facility immediately before and after the retrofit project, including interactions between Scope 1 and Scope 2 emissions (e.g., electrification projects may reduce Scope 1 emissions but increase Scope 2 emissions). Express post-retrofit emissions reductions in both absolute and relative (% reduction) terms, where the latter must be at least 20%.

Applicants should report emissions levels using facility-specific, material/product-specific cradle-to-gate Type III (third-party verified) Environmental Product Declarations (EPDs), in line with the specifications found in EPA’s interim determination for the Buy Clean initiative for those relevant products.³

Emissions should be calculated and submitted in the 48C Application Data Sheet, which is based on the EPA Greenhouse Gas Reporting Protocol and EPA’s Simplified GHG Emissions Calculator (https://www.epa.gov/climateleadership/simplified-ghg-emissions-calculator). Large industrial facilities with existing GHGRP reports should also submit their GHG emissions figures from the most recent calendar year, expressed in metric tons of CO₂ equivalent. Explain any significant differences between direct emissions from the facility and a reasonable domestic industry average.

Describe the extent to which the equipment used to facilitate the GHG emissions reductions at your facility is produced domestically. For instance, a project utilizing carbon capture equipment should explain whether they are sourcing from domestic CCUS companies or manufacturers.

Describe how your project will help strengthen resilience of critical domestic supply chains that facilitate progress towards a net-zero economy, including by spurring or fulfilling the growing demand for low-carbon construction materials, such as those covered in the Buy Clean Initiative.

Describe the extent to which the retrofit project employs innovative solutions that can enhance U.S. leadership and industrial competitiveness. Include the use of advanced industrial or manufacturing approaches.

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

Brief description of the methodology used as the basis for the calculation. This methodology should be a commonly accepted industry standard.

Identification and brief rationale for the source of key values used in the calculation, including capital or first costs, operating and maintenance costs, prices of commodity fuels or feedstocks, and carbon emissions associated with the operation of the end-use energy product.

Justification for any use of a resource-related parameter (e.g., capacity factor) different than the national averages provided.

In the case of LCEA, identification and brief rationale for the key values associated with the baseline energy mix, including the cost of generation and carbon emissions.

Explanation of any factors impacting the levelized cost that could not be quantified and included in the calculation, and their potential directional effect on the resulting cost (i.e., increase or decrease).

Explanation of any relationship between the cost of the manufactured property and the performance of the end use energy product.

If possible, an “unimproved” levelized cost calculation that does not reflect the input of the manufactured property (e.g., relies on the competitive standard of the day), based on the same financial and resource assumptions used in the “improved” calculation.

Explanation of why a value either could not be calculated or was not appropriate to calculate for the end-use energy product.

Brief description of the methodology used in the cited study.

Identification of key assumptions used in the study, including the year basis for which the cost is reported (if the cost is reported in real terms; e.g., $2011), the year of costs and prices of fuel commodities, the year to which the end cost value is referenced (e.g., could be a future year), the extent of technology improvement assumed for the comparable end use energy product, the regional extent of the baseline assumed (e.g., global, the United States, or a region of United States), the carbon emissions associated with the baseline energy mix and the end-use energy product, the key financial assumptions (e.g., interest rates, taxes, and incentives included), and the resource-related parameters (e.g., capacity factors).

Explanation of how the above assumptions differ from those provided above for guiding the calculation of the cost of abatement, and the potential directional effect of these differences on the study’s cost value (i.e., if the aforementioned assumptions required for cost of abatement calculation had been used, explain whether the study’s cost value likely have increased or decreased).

Project schedule and time from certification to completion:

o Readiness to proceed with the proposed project and reasonableness of the timeframe required for construction and commissioning of the project;

o The extent to which tasks are well described and important risks and mitigation strategies are identified and addressed; and

o Readiness to proceed with the proposed project as evidenced by firmness of site selection and progress towards securing required permits, contracts, reviews, agreements, and milestones for each identified task.

Strength of the proposed business plan, including:

o The potential for commercial deployment, based on estimates of market share, market growth potential, and price competitiveness of the product.

o 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.

o The degree to which proposed budget is realistic based on spending plan and contingencies.

o The degree to which the investment is profitable, based on the project economics as described in cash flow analysis of the project.

o 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.

o 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.

End Product: The extent to which the end product will help avoid or reduce anthropogenic GHG emission and contribute to reaching the national target of net-zero emissions by 2050. For Critical Materials Projects, this includes the extent to which there is clear evidence that the produced critical material(s) will be used in the manufacturing of clean energy technologies that are needed in a net-zero economy. For low carbon energy-intensive materials, this includes the extent to which the technologies used to reduce production emissions contribute to reaching the national target of net-zero emissions. Preference will be given to projects that result in products in the lowest 20 percent of embodied greenhouse gas emissions when compared to similar products, in line with EPA’s interim determination for what constitutes “substantially lower” embodied emissions for the Buy Clean initiative for those relevant materials.⁵

Facility: The extent to which the project plan minimizes GHG emissions from the facility itself through best-in-class technologies or approaches that exceed those of incumbents or competitors, including activities to monitor facility emissions and energy use.

Upstream Supply Chain: The extent that the project plan includes strategies to reduce emissions in the upstream supply chain (e.g., through contracts with low-emissions suppliers).

Filling supply chain gap: The degree to which a project’s product addresses a critical gap in the supply chain of technologies needed to achieve net-zero emissions. (For projects involving critical materials, evaluation will also consider the extent to which the project proposes to produce materials listed in the USGS/DOE Critical Materials assessment or demonstrates cost competitiveness through the production of a combination of critical and non-critical materials).

Federal tax credit efficiency: the extent to which federal tax credit support for the project will effectively enhance the development of the domestic supply chain and manufacturing and expedite the deployment of clean energy products. This includes:

o 48C credit impact: The extent to which project demonstrates the need for 48C program support, describing how the resources will be leveraged, potentially including but not limited to increased output (as represented by added capacity per tax credit requested), minimized waste, optimized manufacturing processes, decreased product price, or improved product project economics; and

o Support expansion of domestic supply chains: The extent to which the project expands manufacturing and accelerates deployment of clean energy products, as demonstrated by whether the proposed product will be used in the production of one or more clean energy products or technologies, domestic versus international production today, and capacity added compared to market gap.

Job Creation and Workforce Continuity:

o 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.

o The quality of new and/or retained jobs in construction and in operations/production (both hired directly and by third parties) including wages and employer-sponsored benefits for all classifications, employment statuses (i.e. full-time, part-time, contractor), health and safety programs and standards, and phases of work.

o The extent to which the applicant engaged key stakeholders to develop partnerships to better serve local and underrepresented workers through training and support that may include a collective bargaining agreement, labor-management partnership, registered apprenticeship or pre-apprenticeship programs, or detailed workforce development and continuity plans.

o The extent to which the project guarantees employees 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.

o The extent to which job quality and workforce continuity commitments are formalized in agreements for each phase of the project that may include Project Labor Agreements, Community Workforce Agreements, Collective Bargaining Agreements, or Community Benefits Agreements that include conditions of employment.

o The extent to which applicant demonstrates 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:

o The extent of current and planned efforts to engage community and labor stakeholders and degree to which these engagements have led to or are likely to lead to formal agreements (e.g., project labor agreements, collective bargaining agreements, community benefits agreements).

o 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 continuity of the necessary workforce.

o The extent to which the applicant has a clear and appropriately robust plan to engage with labor unions, Tribal entities, and community-based organizations that support or work with disadvantaged communities and other affected stakeholders and the degree to which these engagements have led to or are likely to lead to formal agreements.

o 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 commitments.

Energy Community Transition:

o The extent to which the application includes specific actions to support energy communities, including transition opportunities for workers in the coal, other energy, and automotive sectors into clean energy sectors.

o 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:

o 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.

o The extent to which the application identifies specific, measurable benefits for disadvantaged communities, including energy communities, and how negative environmental impacts affecting disadvantaged communities would be mitigated.

Avoided Emissions: The extent to which the described emissions reductions are comprehensive, specific, reasonable, and significant (based on combined Scope 1 and Scope 2 emissions) and correspond to at least a 20% reduction in GHG emissions, accounting for any anticipated changes to the facility’s production volumes. Preference will be given to projects that result in products in the lowest 20 percent of embodied greenhouse gas emissions when compared to similar products, in line with EPA’s interim determination for what constitutes “substantially lower” embodied emissions for the Buy Clean initiative for those relevant materials.⁶

Cost of Avoided Emissions: The extent to which the project achieves a low levelized cost of measured reduction in GHG emissions (based on capital expenditures and/or tax credit dollars requested).

Technology Innovation: The extent to which the project uses current best-in-class industrial or manufacturing approaches and innovative, low-emissions equipment, fuels, feedstocks, or processes.

Scalability: The extent to which the project will contribute to the achievement of net-zero emissions in the U.S. by 2050, including the potential for the approach to be applied beyond the specific project location.

The extent to which the proposed project enhances U.S. leadership in low emissions manufacturing as demonstrated by implementing innovative technologies such as installing energy efficient equipment that improve the U.S. competitive edge in low carbon manufacturing processes.

The extent to which the project will advance the commercial viability and uptake of replicable, cross-cutting decarbonization approaches in major industrial applications such as energy efficiency, electrification, LCFFES, material efficiency or substitution, and CCUS.