Infrastructure Investment and Jobs Act Programs for Hydroelectric Facilities

The following IIJA programs below may be of interest to hydroelectric facility owners and operators in New Hampshire.

Maintaining & Enhancing Hydroelectricity Incentives Program

The Maintaining & Enhancing Hydroelectricity Incentives Program is a new program designed to support and enhance existing hydropower. The IIJA provides $553.6 million in incentive payments to enhance existing hydropower facilities through capital improvements directly related to three main areas: grid resiliency, dam safety, and environmental improvements. Incentive payments shall not exceed 30% of the costs of the applicable capital, improvement, and not more than $5 million will be provided to any facility in any Fiscal Year.

Funding recipients include non-federal owners of qualified hydroelectric facilities that meet the following qualifications:

  1. FERC licensed and placed in service before enactment of the program.
  2. In compliance with all applicable Federal, Tribal, and State requirements; or would be brought into compliance as a result on capital improvements.

The US Department of Energy released a Request for Information in June 2022 to gather feedback from stakeholders on issues related to this program’s development. The Request for Information closed in September 2022. The US Department of Energy estimates an application opening date in Quarter 2 of 2023.

Hydroelectric Efficiency Improvement Incentives Program

The Hydroelectric Efficiency Improvement Incentives Program is a new program that offers $75 million in incentive payments to the owners or operators of hydroelectric facilities at existing dams to be used to make capital improvements in the facilities that are directly related to improving the efficiency by at least 3%. 

Incentive payments cannot exceed 30% of the costs of the capital improvement and not more than one payment may be made with respect to improvements at a single facility with a ceiling of $5 million.

The US Department of Energy released a Request for Information alongside the Maintaining & Enhancing Hydroelectricity Incentives Program to gather feedback from stakeholders on issues related to this program’s development. The Request for Information closed in September 2022. The US Department of Energy has not determined an application opening date for this program yet