---
kind: "section"
citation: "42 U.S.C. § 7256c"
title: "42"
title_heading: "The Public Health and Welfare"
number: "7256c"
heading: "Milestone-based demonstration projects"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/7256c"
units:
  - "Chapter 84 — Department of Energy"
  - "Subchapter VI — Administrative Provisions"
  - "Part C — General Administrative Provisions"
---

# §7256c. Milestone-based demonstration projects

- (a) **In general—** Acting under [section 7256(g) of this title](/usc/42/7256.md?p=g), notwithstanding [paragraph (10)](/usc/42/7256.md?p=g-10) of such section, the [Secretary](/usc/42/7385s.md?p=3) of Energy (in this section referred to as the “[Secretary](/usc/42/7385s.md?p=3)”) may carry out demonstration [projects](/usc/42/13641.md?p=2) as a milestone-based demonstration [project](/usc/42/13641.md?p=2) 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](/usc/42/13641.md?p=2) under the authority in [paragraph (1)](#b-1), the [Secretary](/usc/42/7385s.md?p=3) shall, for each relevant [project](/usc/42/13641.md?p=2)—
  - (1) request proposals from eligible entities, as determined by the [Secretary](/usc/42/7385s.md?p=3), 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](/usc/42/13641.md?p=2) timelines and total costs; and
  - (2) award funding of a predetermined amount to [projects](/usc/42/13641.md?p=2) that successfully meet proposed milestones under [paragraph (1)(C)](#b-1-C) or for expenses deemed reimbursable by the [Secretary](/usc/42/7385s.md?p=3), in accordance with terms negotiated for an individual award;
  - (3) require cost sharing in accordance with [section 16352 of this title](/usc/42/16352.md); and
  - (4) communicate regularly with selected eligible entities and, if the [Secretary](/usc/42/7385s.md?p=3) deems appropriate, exercise small amounts of flexibility for technical and financial milestones as [projects](/usc/42/13641.md?p=2) mature.
- (c) **Awards—** For the program established under [subsection (a)](#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)](#a), the [Secretary](/usc/42/7385s.md?p=3) 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](/usc/42/13641.md?p=2) carried out under this section.
- (d) **Project management—** In carrying out [projects](/usc/42/13641.md?p=2) under this program and assessing the completion of their milestones in accordance with [subsection (b)](#b), the [Secretary](/usc/42/7385s.md?p=3) 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](/usc/42/16391a.md?p=a), the [Secretary](/usc/42/7385s.md?p=3) shall report annually on any demonstration [projects](/usc/42/13641.md?p=2) carried out using the authorities under this section.

## Source credit

(Pub. L. 116–260, div. Z, title IX, § 9005, Dec. 27, 2020, 134 Stat. 2599.)

## Notes

### 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.