What is the Transmission Siting and Economic Development Grants program? 

Section 50152 of the Inflation Reduction Act of 2022 (IRA) authorizes the Secretary of Energy to make grants to siting authorities to carry out certain eligible activities that will facilitate the siting and permitting of certain interstate onshore and offshore electricity transmission lines. Section 50152 also authorizes the Secretary to make grants to siting authorities, or other State, local, or Tribal governmental entities, for economic development activities in communities that may be affected by the construction and operation of these transmission projects.

Why is DOE issuing an RFI for the Transmission Siting and Economic Development Grants program? 

DOE seeks to gather input from stakeholders regarding potential activities by siting authorities and/or economic development projects in affected communities that could be supported by grants under this provision of the IRA, and the goals, objectives, and priorities that should guide the Secretary’s use of this new grant authority. Information collected from this RFI will be used by DOE for program planning purposes and the potential development of a Funding Opportunity Announcement (FOA).

What is the deadline and how are comments and questions to DOE submitted? 

The deadline for submitting comments and questions to the RFI is February, 28, 2023 at 5pm EST. Interested stakeholders must submit comments and questions electronically to GDOIRASection50152@hq.doe.gov. Please include “RFI for Transmission Siting and Economic Development Grants” in the subject line of the email.

Who is eligible for grant funding through this program? Can non-eligible entities still respond to this RFI? 

Siting authorities, meaning State, local, or Tribal governmental entities with authority to make a final determination regarding the siting, permitting, or regulatory status of a covered transmission project (defined below) that is proposed to be located in an area under the jurisdiction of the entity, are eligible to receive funds for certain eligible siting activities. .  Additionally, siting authorities, as well as other State, local, or Tribal governmental entities, may be eligible for grants to undertake economic development activities for communities that may be affected by the construction and operation of a covered transmission project.  

DOE welcomes feedback from all interested stakeholders and encourages them to submit comments to this RFI to help inform program design.

What siting activities can be supported with grants under this program? 

The IRA enumerates siting activities that grants to siting authorities may support. Specifically: 

• Studies and analyses of the impacts of a covered transmission project.   
• Examination of up to three alternate siting corridors within which a covered transmission project feasibly could be sited.  
• Participation by the siting authority in regulatory proceedings or negotiations in another jurisdiction, or under the auspices of a Regional Transmission Organization, Independent System Operator, or similar entity that is also considering the siting or permitting of the covered transmission project.  
• Participation by the siting authority in regulatory proceedings at the Federal Energy Regulatory Commission or a State regulatory commission concerning the rates and cost allocation for the covered transmission project.  

DOE may also, if it determines it appropriate, support other measures and actions that may improve the chances of, and shorten the time required for, approval by a siting authority of the application relating to the siting or permitting of a covered transmission project. 

What economic development activities can be supported with grants under this program? 

The IRA allows DOE to provide grants to siting authorities or other State, local, or Tribal governmental entities for economic development activities for communities that may be affected by the construction and operation of a covered transmission project. The RFI is seeking additional information from interested stakeholders on the types of economic development activities in impacted communities that could be supported by these grants. 

How much funding is available through this program? 

The total funding available for this program under the law is $760 million.

When does DOE expect to announce the initial distribution of grants?

DOE is targeting the second half of calendar year 2023.

How long is funding available?

Funding is available until expended or September 30, 2029, whichever occurs first.

What is the application process for grants?

DOE is requesting input through this RFI to inform the program design. The process for distributing grants will be announced in a future issuance.

Will these awards be time-based or merit-based? 

DOE’s grant determinations will be based on responses to the RFI and specific grant applications.  

Tribes may not have a designated “siting authority” for transmission projects, including those crossing reservation lines.  How would DOE view eligibility for them for these grants?

In order to be eligible for grants related to siting activities (under IRA section 50152(b)(1)), the grant recipient must be a “siting authority,” which the statute defines as: a State, local, or Tribal governmental entity with authority to make a final determination regarding the siting, permitting, or regulatory status of a covered transmission project that is proposed to be located in an area under the jurisdiction of the entity.

Tribal governmental entities are eligible for grants for economic development activities for communities that may be affected by the construction and operation of a covered transmission project. 

What is a “covered transmission project”?

The IRA defines a covered transmission project for purposes of grant eligibility as a high-voltage interstate or offshore electricity transmission line that is proposed to be constructed and to be operated at a minimum of 275 kilovolts (alternating-current or direct-current) if onshore, or at a minimum of 200 kilovolts (alternating-current or direct- current) if offshore, by an entity, and for which the entity has applied or informed a siting authority of its intent to apply for regulatory approval. (See IRA section 50152I(1).). For the purpose of this RFI, interstate means between two or more states.

Are there any statutory conditions placed on grant funding?

The IRA requires that siting authorities that receive a grant for siting activities with respect to a covered transmission project must reach a final decision on the application relating to the siting or permitting of the applicable covered transmission project no later than 2 years after the date the grant is provided. The statutory language also provides that the Secretary may, in her discretion, extend this timeline for good cause.

In addition, for certain enumerated eligible siting activities (for example, participation by a siting authority in regulatory proceedings in another   jurisdiction) the statutory language limits the federal share of costs supported by grants to 50 percent of the total cost.  Federal cost share limitations do not apply to economic development activities, as detailed in IRA section 50152(b)(2).

Additionally, grants are available to siting authorities or other State, local, or Tribal governmental entities for economic development activities for communities that may be affected by the construction and operation of a covered transmission project. The statute provides that the Secretary may only disburse such grant funds to a siting authority upon its approval of the covered transmission project, or to another State, local, or Tribal governmental entity upon commencement of construction of the covered transmission project.

In addition, for certain enumerated eligible siting activities (for example, participation by a siting authority in regulatory proceedings in another   jurisdiction) the statutory language limits the federal share of costs supported by grants to 50 percent of the total cost.

How public will the covered transmission projects be? (ie. Will it be like an ISO queue type public or something more private)

It could be either or both.