In support of the Bipartisan Infrastructure Law, the U.S. Department of Energy (DOE) has developed a $2.5 billion Transmission Facilitation Program (TFP) that will help build out new interregional transmission lines across the country. The TFP, administered through the Building a Better Grid Initiative, is a revolving fund program that will provide Federal support to overcome the financial hurdles in the development of large-scale new transmission lines and upgrading existing transmission as well as the connection of microgrids in select States and U.S. territories.

Under the TFP, DOE is authorized to borrow up to $2.5 billion through three financing tools:

• Capacity contracts with eligible projects where DOE would serve as an “anchor customer” to buy up to 50% of planned line rating for up to 40 years and to sell the contract to recover costs  
• Loans from DOE  
• DOE participation in public-private partnerships within a national interest electric transmission corridor (NIETC) and necessary to accommodate an increase in electricity demand across more than one state or transmission planning region

TFP is best fit for project that are nearly “shovel ready” and are in regions that rely on firm point-to-point transmission. TFP is designed for projects that would otherwise not be constructed without support. TFP will not include projects that already are fully subscribed or have a fully allocated source of revenue.

On November 18, 2022, DOE released the first request for proposals.

DOE will use capacity contracts to commit to purchasing up to 50% of the maximum capacity of the transmission line. By initially offering capacity contracts to late-stage projects, DOE will increase the confidence of additional investors and customers and reduce the risk of project developers under-building or under-sizing needed transmission capacity projects.

A public webinar was held on November 30, 2022.

Applications for the first round of the TFP closed on February 1, 2023, and the review process is underway. The Department does not intend to publicly announce the identities of entities that submit applications and will only announce names of applicants who are selected to start negotiations. 

Visit the Grid and Transmission Program Conductor for additional information to help identify which financing program is most appropriate for individual projects.