APPLICATION GUIDANCE FOR SECTIONS 242, 243, AND 247

On May 8, 2023, the Grid Deployment Office released application guidance and opened the solicitation for the Maintaining and Enhancing Hydroelectricity Incentives (EPAct 2005 Section 247).

On March 22, the Grid Deployment Office opened applications for the Hydroelectric Production Incentives ((EPAct 2005 Section 242) and Hydroelectric Efficiency Improvement Incentives ((EPAct 2005 Section 243).

The United States currently gets 6.3% of its electricity—and 31.5% of its renewable electricity generation—from hydropower facilities, which provide a reliable and flexible source of power. Hydropower also provides critical energy storage, and pumped storage hydropower accounts for 93% of all utility-scale energy storage in the United States. Hydropower is key to building a 100% clean energy future. But as today’s facilities age and become more expensive to maintain, the United States risks losing a major source of clean energy and well-paying jobs.

Leveraging operational flexibility and energy storage capabilities, hydropower supports energy resource adequacy to ensure the availability of clean, reliable generation capacity allowing all Americans access to clean, resilient, and affordable electricity. The President’s Bipartisan Infrastructure Law (BIL) invests in maintaining and enhancing existing hydroelectric facilities to ensure generators continue to provide clean electricity, while improving dam safety and reducing environmental impacts.

The BIL authorizes three hydroelectric incentive programs:

The Hydroelectric Production Incentives (BIL provision 40331 and EPAct 242) and the Hydroelectric Efficiency Improvement Incentives (BIL provision 40332 and EPAct 243) were authorized by Congress through the Energy Policy Act of 2005. Since 2014, Congress has directed funding annually through the appropriations process for the Section 242 program. The BIL directed funding to the Section 243 program for the first time and also amended the Energy Policy Act of 2005 to create and fund the Maintaining and Enhancing Hydroelectricity Incentives (BIL provision 40333 and EPAct 247).

On May 8, 2023, the Grid Deployment Office released application guidance and opened the solicitation for the Maintaining and Enhancing Hydroelectricity Incentives (EPAct 2005 Section 247). Letters of Intent (LOI) will be accepted for through the Clean Energy Infrastructure Funding Opportunity eXCHANGE for a 45-day period starting May 8, 2023, through 5:00 p.m. ET, June 22, 2023. Full applications will be accepted for a 105-day application period starting June 23, 2023, through 5:00 p.m. ET, October 6, 2023. To be eligible to file a full application, prospective applicants must first file a Letter of Intent. The Community Benefits Plan Objectives Summary referenced in the application guidance will become available here shortly.

An informational webinar was held on May 24, 2023. The presentations slides are available and a transcript of the proceedings will be made available in the coming weeks.

Video Url
Learn more about the Maintaining and Enhancing Hydroelectricity Incentives (Bipartisan Infrastructure Law provision 40333 and EPAct 2005 Section 247).
Video courtesy of the U.S. Department of Energy, Grid Deployment Office

On March 22, 2023, the Grid Deployment Office opened applications for the Hydroelectric Production Incentives ((EPAct 2005 Section 242). The application window for electricity generated and sold in calendar year 2021 and 2022 under the Hydroelectric Production Incentives closed on May 8, 2023. DOE is now in the process of reviewing applications and will notify applicants of their eligibility in July.

On March 22, 2023, the Grid Deployment Office opened applications for the Hydroelectric Efficiency Improvement Incentives ((EPAct 2005 Section 243). Applications will be accepted through the Clean Energy Infrastructure Funding Opportunity eXCHANGE and are due by June 20, 2023 at 5:00 p.m. ET.

An informational webinar was held on Wednesday, April 5, 2023.

Video Url
Learn more about the Hydroelectric Efficiency Improvement Incentives (Bipartisan Infrastructure Law provision 40332 and EPAct 2005 Section 243).
Video courtesy of the U.S. Department of Energy, Grid Deployment Office

On February 8, 2023, the Grid Deployment Office released draft application guidance for the Maintaining & Enhancing Hydroelectricity Incentives (EPAct 2005 Section 247) for public comment inform the implementation. The response period closed on February 28, 2023 and the review process is underway. The Department does not intend to publicly announce the identities of entities that submitted comments. The final guidance and solicitation is scheduled for release in the second quarter of 2023.

On June 30, 2022, DOE requested feedback on the structure of the Hydroelectric Efficiency Improvement Incentives (BIL provision 40332 and EPAct section 243) and the Maintaining and Enhancing Hydroelectricity Incentives (BIL provision 40333 and EPAct section 247). A public listening session was held on August 9, 2022. Comments closed on September 6, 2022.

Visit Bipartisan Infrastructure Law | Department of Energy for more information about BIL-funded activities at GDO.

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