DOE Seeks Feedback on Biden’s $2.5B Program to Build New Transmission Lines
The Department of Energy seeks public comment on President Joe Biden’s effort to build out new transmission lines across the United States.
Biden launched the $2.5 billion Transmission Facilitation Program through the Bipartisan Infrastructure Law. TFP is a revolving fund program designed to address financial issues associated with building new transmission lines and upgrading existing connections in some states and territories, DOE said Tuesday.
Secretary of Energy Jennifer Granholm said nearly 70 percent of the United States’ power grid is more than 25 years old.
“Expanding and strengthening our power grid means we can get Americans power where and when they need it most,” Granholm said, adding that a stronger grid can help the country reach climate goals and create good-paying jobs.
Through TFP, DOE may borrow up to $2.5 billion to incentivize the construction of new lines. DOE may use the funding to issue loans, participate in public-private partnerships or award capacity contracts with select organizations.
The department said that the first solicitation will be limited to applicants seeking capacity contracts. DOE said it will commit to buying up to 50 percent of the maximum capacity of the transmission lines for 40 years to reduce the risk of transition programs.
DOE issued a request for information to gather feedback on its proposed approach to implementing TFP. A public webinar will be held on May 26 for additional information on the topic.
TFP is part of the $20 billion that Biden earmarked for DOE’s Building a Better Grid Initiative and, according to the department, is the largest infrastructure law investment in transmission.
DOE added that the investments support the Biden administration’s goal of having the U.S. grid run on 100 percent clean electricity by 2035.
Category: Federal Civilian
Tags: Building a Better Grid Initiative Department of Energy federal civilian Jennifer Granholm Transmission Facilitation Program