U.S. Senate moves forward on $1T infrastructure deal, including $73B for clean energy transmission
The U.S. Senate announced an abrupt about-face this week by reaching a bipartisan, $1 trillion infrastructure deal, including billions for upgrading and expanding transmission lines and investing in clean energy technologies.
The announcement followed agreements between President Joe Biden and a bipartisan group of senators that would yield $550 billion in new federal spending on the nation’s infrastructure. The power sector won’t miss out on the benefits of this, with $73 billion directed to modernizing the energy grid – the single largest investment in clean energy transmission in U.S. history. Another $7.5 billion could go toward the construction of a national network of electric vehicle chargers, with particular focus on rural, disadvantaged and hard-to-reach communities.
In addition to upgrading the grid to make it more resilient, the infrastructure deal “creates a new Grid Deployment Authority, invests in research and development for advanced transmission and electricity distribution technologies, and promotes smart grid technologies that deliver flexibility and resilience,” a White House fact sheet said. “It invests in demonstration projects and research hubs for next generation technologies like advanced nuclear reactors, carbon capture, and clean hydrogen.”
The goal, ideally, would be to use this evolution to help modernize the grid and counter power outages that, according to the U.S. Department of Energy, cost the nation as much as $70 billion annually.
The effort moved forward on a 67-32 vote to start formal Senate consideration. Notably, this just begins the process and there’s no guarantee lawmakers will join a final effort at passage. In all, 60 votes would be required. It would be but the first part of Biden’s pursuit of a more ambitious $3.5 trillion spending package that would reach many facets of American life.
Energy groups responded positively to the news.
“The continued focus on creating jobs and encouraging investment in clean energy technologies, the energy grid, electric vehicle charging, and middle-mile broadband is a win for customers and communities all across the nation,” said Tom Kuhn, president of the Edison Electric Institute (EEI), which represents all investor-owned U.S. electric companies.
The American Clean Power Association hailed the return of bipartisanship to an oft-divided Senate.
“We are excited about the important clean energy provisions that will create good-paying jobs, boost domestic manufacturing, and enhance critical transmission lines needed to accommodate the rapid growth of renewable energy projects across the country,” Heather Zichal, CEO of the American Clean Power Association, said. “Last week I met with President Biden, Vice President Harris and union and business leaders where I told the President that our industry and our more than 800 member companies support the Biden administration’s efforts to invest in the clean energy economy.”
While new power lines will help the grid, the bill also makes room for things like healthy rivers and the hydropower that relies on them. For example, the bill would launch a new grant program that offers $553 million for supporting grid resilience, dam safety upgrades and environmental enhancements to existing hydropower facilities. It would also build on existing incentive programs by providing millions to add hydropower generation to non-powered dams, conduits and efficiency improvements. It would also state a demonstration project to assist development of new designs, transmission studies and power market assessments for pumped storage hydropower facilities.
The National Hydropower Association said the legislation also would provide $800 million for rehabilitating dams and safety projects to maintain, upgrade and repair such structures. Another $800 million would go to dam removal and in-stream barriers.
“Hydropower is an essential part of a climate solution, and we applaud Congress for recognizing that it will play a prominent role in reaching the goal of a zero-carbon electricity grid,” Malcolm Woolf, president and CEO of the National Hydropower Association, said. “The bill provides the tools needed to encourage investment in the existing hydropower fleet, which currently provides emission-free, reliable, and affordable electricity to an estimated 30 million American homes and businesses.”
