DOE issues RFI seeking feedback on $2.5B Transmission Facilitation Program
The U.S. Department of Energy (DOE) is seeking public input on the structure of the $2.5 billion Transmission Facilitation Program (TFP), which is designed to help build out new transmission lines across the country.
This new program, funded through the Bipartisan Infrastructure Law, is a revolving fund program that will provide federal to create new, large-scale transmission lines, upgrade existing transmission lines, and connect microgrids. It is part of the DOE’s new Building a Better Grid Initiative, which includes more than $20 billion worth of investments. Independent estimates indicate that the United States needs to expand electricity transmission systems by 60 percent by 2030 and may need to triple it by 2050.
“Expanding and strengthening our power grid means we can get Americans power where and when they need it most, and in so doing deploy the clean energy we need to reach our climate goals and ultimately bring down energy costs,” U.S. Secretary of Energy Jennifer Granholm said. “With nearly 70 percent of the nation’s grid more than 25 years old, the President’s Bipartisan Infrastructure Law is a pivotal catalyst for transmission projects across the nation that will deliver good-paying jobs in the process.”
Under the TFP, DOE is authorized to borrow up to $2.5 billion to assist in the construction of new and upgraded high-capacity transmission lines through three financing tools — loans from DOE; DOE participation in public-private partnerships; and capacity contracts with eligible projects in which DOE would serve as an “anchor customer.”
The first solicitation will be limited to applicants seeking capacity contracts for eligible projects that will begin operation no later than Dec. 31, 2027. The DOE will commit to purchasing up to 50 percent of the maximum capacity of the transmission line for up to 40 years. The DOE will then remarket the capacity, thereby replenishing the fund.
With this issuance of this Request for Information (RFI), the DOE is requesting feedback on the proposed implementation approach for the TFP from a wide range of stakeholders. Comments can be submitted via Regulations.gov and are requested 30 days after publication in the Federal Register.
The DOE expects to issue another Notice of Intent/RFI in early 2023 that will incorporate the loan and public-private partnership financing tools in addition to the capacity contracts.
