On July 24, 2024, the Department of Energy (“DOE”) announced its selection of 20 projects to receive up to a total of $371 million in the first round of grants to be issued under the Transmission Siting and Economic Development (“TSED”) Grant Program. The TSED program is a $760 million investment created through the Inflation Reduction Act (“IRA”) with two goals: (1) alleviate permitting challenges that hinder the deployment of critical transmission; and (2) provide tangible economic benefits to communities impacted by transmission construction and operation.
Accordingly, the two categories of grants offered under the TSED program include (1) grants for siting and permitting activities, and (2) grants for economic development activities. Of the 20 projects recently awarded, four were awarded siting and permitting grants to fund various activities including efforts to improve community engagement and streamline the transmission siting process for certain MISO projects through the Illinois Commerce Commission process and accelerating the siting decision-making processes on certain PJM regional transmission projects through the Pennsylvania Public Utility Commission process. Projects recently awarded economic development grants include the provision of additional resources by funding education, training, and infrastructure upgrades to increase sustainability and resilience within affected communities proposed by states, cities, tribes, and other local governmental entities. The Colorado Department of Local Affairs, New York Power Authority, and Santa Ynez Band of Chumash Mission Indians are three examples of the 16 entities selected to receive economic development grants.
More information regarding the selected projects can be found here.
DOE anticipates additional opportunities for applicants under the TSED program as funding is available until the full $760 million is exhausted, or by September 30, 2029, whichever comes first. The initial Funding Opportunity Announcement (“FOA”) for the TSED program was issued on August 29, 2023, and DOE expects to release the second FOA in Fall 2024.
Applicants eligible for siting and permitting grants include siting authorities, defined as Tribal, state, and local governments with the authority to make a final determination regarding siting, permitting, or the regulatory status of a covered transmission project. Eligible siting and permitting activities must be connected to a covered transmission project and include, but are not limited to, studies and analyses of transmission project impacts; examination of alternate siting corridors; participation in regulatory proceedings or negotiations in another jurisdiction; and participation in regulatory proceedings at the Federal Energy Regulatory Commission or a State regulatory commission.
Applicants eligible for economic development grants include siting authorities or any Tribal, state, or local governments proposing to undertake eligible activities in a community impacted by transmission development from a covered transmission project. Eligible economic development activities must be connected to a covered transmission project and include, but are not limited to, sub-grant programs for communities; local energy democratization and resilience projects; affordable and sustainable housing; co-location of high-speed broadband; community facility development; environmental resource development or improvement; training and apprenticeships; and low-income energy funds.
“Covered transmission project” is defined in the IRA as high voltage interstate or offshore electricity transmission lines for which an entity has applied for regulatory approval or informed a siting authority regarding its intent to apply for approval.
DOE’s FAQ webpage for the TSED program can be found here.
For more information regarding DOE funding initiatives and assistance with applying for future funding opportunities, please contact Jeff Genzer, Peter Scanlon, Michael Postar, Bhaveeta Mody, or Gelane Diamond.
