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

(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 engage- ment . 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.