DOE releases list of potential electric transmission corridors in need of expansion

Published on May 10, 2024 by Dave Kovaleski

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The U.S. Department of Energy (DOE) is looking to accelerate the development of transmission projects in areas that present an urgent need for expanded transmission.

To that end, it released a preliminary list of 10 potential National Interest Electric Transmission Corridors (NIETCs) for development of transmission infrastructure. It also announced minimum eligibility criteria for direct loans under the Transmission Facility Financing (TFF) program. The TFF program can finance the development of billions of dollars of transmission projects in designated NIETCs.

“At more than a century old, our power grid is showing its age, leaving American consumers to bear the costs of maintaining it with frequent and longer power outages from extreme weather,” U.S. Secretary of Energy Jennifer Granholm said. “The Biden-Harris Administration is leveraging every tool to expand transmission and deploy more reliable, affordable, and clean power in every pocket of the nation.”

A NIETC designation unlocks critical federal financing and permitting tools to spur transmission development, including direct loans through the TFF program, public-private partnerships through the Transmission Facilitation Program, and Federal siting and permitting authority of the Federal Energy Regulatory Commission (FERC). Developers and state and local siting authorities may also be able to leverage the environmental analysis conducted by DOE as part of the NIETC designation process to complete local siting and permitting processes. This could ultimately accelerate siting and permitting for transmission projects in these targeted, high-priority areas.

DOE invited interested parties to suggest specific geographic areas where a NIETC designation may be particularly helpful in advancing transmission. After independent analysis and review of public input, DOE’s preliminary list of potential NIETCs includes 10 narrow geographic areas spanning nine of the regions identified by DOE’s 2023 National Transmission Needs Study.

The potential NIETCs:

• Include one or more potential transmission projects currently under development whose deployment could be accelerated by the tools unlocked by NIETC designation.
• Range in width from less than one mile to near 100 miles and in length from 12 to 780 miles.
• Often parallel existing rights of way such as state highways and high-voltage transmission lines.
• Have the potential to facilitate the integration of renewable energy resources such as wind and solar, including offshore wind generation in the Atlantic Ocean.
• Present the opportunity to increase transmission capacity between the Eastern and Western Interconnections–two otherwise largely disconnected grids.

The preliminary list includes maps of each potential NIETC. The geographic boundaries of any potential NIETC that continues in the designation process may ultimately differ from what is presented in the preliminary list. However, this announcement is not designating any final NIETC.

“In order to reach our clean energy and climate goals, we’ve got to build out transmission as fast as possible to get clean power from where it’s produced to where it’s needed,” John Podesta, senior advisor to the President for International Climate Policy. “As today’s announcements demonstrate, the Biden-Harris administration is committed to using every tool at our disposal to accelerate progress on transmission permitting and financing and build a clean energy future.”

This announcement initiates Phase 2 of the NIETC designation process, including opening a 45-day window for public comments on the geographic boundaries and potential impacts of NIETC designation on environmental, community, and other resources.

DOE is now seeking public input on both the preliminary list of potential NIETCs and the TFF program application and evaluation process. The public comment period will close at 5:00 p.m. ET on June 24.

Submissions must be made by emailing NIETC@hq.doe.gov. There will be an informational webinar on May 16 at 3:30 p.m. ET.