Inflation Reduction Act - Transmission Siting and Economic Development Program

The U.S. Department of Energy (DOE), through its National Energy Technology Laboratory (NETL) and on behalf of the Grid Deployment Office (GDO), has released a Funding Opportunity Announcement (FOA) to facilitate the siting of high-voltage interstate and offshore electricity transmission lines. The FOA is funded by Section 50152 of the Inflation Reduction Act (IRA) of 2022, which supports both siting activities and economic development in communities impacted by the construction and operation of covered transmission projects. A total of $760 million has been allocated for these initiatives, with the aim of accelerating clean energy infrastructure in alignment with the Biden-Harris Administration’s goals for a carbon-free power sector by 2035. The program under this FOA has two main areas of focus. The first area, "Siting and Permitting Activities," is intended to streamline regulatory and approval processes for transmission projects that operate at a minimum of 275 kilovolts (kV) on land or 200 kV offshore. Eligible applicants under this category are state, local, and Tribal governments with the authority to make decisions regarding the siting and permitting of transmission lines. Activities eligible for funding in this area include studies of environmental and community impacts, participation in regulatory proceedings, and public engagement efforts. The objective is to reduce the time required to obtain approval for these projects, with a requirement that siting authorities make a final decision within two years of receiving a grant unless an extension is granted for good cause. The second area, "Economic Development Activities," focuses on providing financial support for initiatives that benefit communities affected by the development of transmission lines. These activities are designed to address local needs, such as job training, affordable housing, environmental restoration, and the creation of community facilities. Eligible applicants include any state, local, or Tribal governmental entity that can demonstrate a clear benefit to communities impacted by transmission projects. While DOE will prioritize activities that meet local needs and align with environmental justice objectives, economic development funds will not be disbursed until siting decisions are made or construction has begun on the related transmission project. A total of approximately $300 million in federal funding is available under this FOA, divided into $100 million for siting and permitting activities and $200 million for economic development. Grants for siting and permitting activities can range from $100,000 to $10 million, while economic development awards can range from $100,000 to $50 million. The period of performance for siting and permitting grants is 24 months, while economic development projects may take between 24 to 48 months, with potential extensions based on project needs. Applicants must meet specific eligibility requirements. For siting and permitting grants, only governmental entities with authority over transmission project siting can apply. For economic development funds, eligible entities include state and local governments, as well as Tribal entities. Furthermore, applicants must clearly demonstrate how their proposed project qualifies as a "covered transmission project" under Section 50152 of the IRA. Proposals should focus on activities that will positively impact the local economy and advance environmental justice objectives. Applications that fall outside the scope of this FOA, such as those not related to transmission projects or concerning fully operational infrastructure, will not be considered. Additionally, applicants for economic development funding must include a Community Benefits Plan that addresses job quality, equity, and diversity goals, including adherence to the Justice40 initiative, which seeks to direct 40% of the overall benefits from federal investments to disadvantaged communities. This funding opportunity is critical for promoting clean energy infrastructure development while ensuring that affected communities receive meaningful economic benefits and support. Interested applicants should ensure that they align their proposals with the FOA’s requirements and priorities to facilitate the rapid deployment of essential energy transmission infrastructure across the United States. Grants.gov lists this grant as closed, but it is currently between cycles and we re-open for applications late summer.