Infrastructure Investment and Jobs Act Programs for Utilities

The following IIJA programs below may be of interest to New Hampshire’s electric utilities.

Preventing Outages and Enhancing the Resilience of the Electric Grid Grants

This new $5 billion program funded through Section 40101(d) of the IIJA is a formula grant program to states and Indian Tribes to prevent outages and enhance the resilience of the electric grid. Formula grant funding is allocated annually over a five-year period to states and Indian tribes to distribute funding to eligible program recipients.

Funding through this program can be used for a wide range of resilience measures intended to mitigate the impact of disruptive events, including:

  • weatherization technologies and equipment;
  • fire-resistant technologies and fire prevention systems;
  • monitoring and control technologies;
  • the undergrounding of electrical equipment;
  • utility pole management;
  • the relocation of power lines or the reconductoring of power lines with low-sag, advanced conductors;
  • vegetation and fuel-load management; 
  • the use or construction of distributed energy resources for enhancing system adaptive capacity during disruptive events, including microgrids and battery-storage subcomponents;
  • adaptive protection technologies;
  • advanced modeling technologies;
  • hardening of power lines, facilities, substations, of other systems; and 
  • the replacement of old overhead conductors and underground cables.

Resilience measures that are not allowed under this program include:

  • Construction of a new electric generating facility or large-scale battery-storage facility that is not used for enhancing system adaptive capacity during disruptive events; or
  • Cybersecurity.

States are permitted to issue subawards to the following eligible entities:

  • An electric grid operator;
  • An electric storage operator;
  • An electricity generator;
  • A transmission owner or operator;
  • A distribution provider;
  • A fuel supplier; and
  • Any other relevant entity, as determined by the Secretary of the US Department of Energy

The NH Department of Energy is slated to receive $3,316,726 in the first year’s allocation. As part of its application, the NH Department of Energy held a public hearing on September 15, 2022, to receive feedback on New Hampshire’s proposed program narrative to administer Section 40101(d) funding. Please find below the following from that meeting:

Federal guidance on this program is continually changing and may shape how the NH Department of Energy ultimately structures its program to disperse Section 40101(d) funding. Applications for this funding are due March 31, 2023. Program applications and FAQs can be found here.

Transmission Facilitation Program

The Transmission Facilitation Program (TFP) is a new $2.5 billion program that creates a revolving loan fund managed by the US Department of Energy to help build and expand interregional transmission lines across the United States. The program’s intent is to provide Federal support to overcome the financial hurdles in the development of large-scale new transmission lines and upgrading existing transmission, as well as the connection of microgrids.

The TFP defines an eligible applicant as any entity seeking to carry out a project that constructs, replaces, or upgrades a transmission line that is either not less than 1,000 megawatts (MW) for new lines or 500 MW for existing lines as well as a project that connects microgrids in select States and U.S. territories. 

In November 2022, the US Department of Energy issued a Request for Proposals. This first solicitation is limited to applicants seeking capacity contracts for eligible projects that will be ready to commerce construction no later than December 31, 2027. These proposals are due on February 1, 2023.

Eligible applicants are encouraged to review additional materials below:

Grid Resilience Innovation Partnership Programs

As part of the Infrastructure Investment and Jobs Act, the US Department of Energy is administering a $10.5 billion Grid Resilience and Innovation Partnership Program (GRIP Program) to enhance grid flexibility and improve the resilience of the power system against growing threats of extreme weather and climate change.

The GRIP Program constitutes three different funding mechanisms to accelerate the deployment of transformative projects that will help ensure the reliability of the power sector’s infrastructure. The first round of funding across the three programs is $3.8 billion for FY22 and 23. 

Interested parties can view a fact sheet for the GRIP Program, and can register for a webinar to learn more about the GRIP Program on Tuesday, November 29 from 2:00-3:00 p.m. EST.

The three funding mechanisms include:

Grid Resilience Utility and Industry Grants

This funding opportunity supports the modernization of the electric grid to reduce impacts due to extreme weather and natural disasters. The program will fund comprehensive transformational transmission and distribution technology solutions that will mitigate multiple hazards across a region or within a community. The program prioritizes projects generating the greatest community benefit in reducing the likelihood and consequences of disruptive events.

Eligible entities that can apply for these grants include:

  • Electric grid operators;
  • Electricity storage operators;
  • Electricity generators;
  • Transmission owners or operators;
  • Distribution providers; and
  • Fuel suppliers.

The first funding cycle will include FY22 and FY23 allocations, up to $1 billion. Funding is capped at the amount the eligible entity has spent in the previous three years on hardening efforts. There is a 100% cost match for the program. The program includes a small utility set aside – at least 30% of the program – for those entities selling no more than 4 million MWh of electricity per year. Small utilities must match 1/3 of grant amounts received.

Concept papers are due December 16, 2022. The US Department of Energy will respond to submitted concept papers by January 27, 2023. Full applications are due April 6, 2023.

Eligible entities are encouraged to review the following links for more information on the Grid Resilience Utility and Industry Grants:

Grid Innovation Program

This funding opportunity supports projects that use innovative approaches to transmission, storage, and distribution infrastructure to enhance grid resilience and reliability. Projects selected under this program will include interregional transmission projects, investments that accelerate interconnection of clean energy generation, and utilization of distribution grid assets to provide backup power and reduce transmission requirements.

The first funding cycle will include both FY22 and FY23 allocations, up to $2 billion. Projects are subject to a 50% cost share minimum.

Eligible entities include:

  • A state or combination of two or more states;
  • An Indian Tribe;
  • A unit of local government; and
  • A Public Utility Commission

Concept papers are due January 13, 2023. The US Department of Energy will provide a response to concept papers by February 24, 2023. Full applications are due May, 19, 2023. Applicants are allowed to submit more than one concept paper, provided that each describes a unique project.

Eligible entities are encouraged to review the following links for more information on the Grid Innovation Program:

Smart Grid Grants 

This funding opportunity is designed to increase the flexibility, efficiency, and reliability of the electric power system with a focus on: increasing capacity of the transmission system, preventing faults that may lead to wildfires or other system disturbances, integrating renewable energy at the transmission and distribution levels, and facilitating the integration of increased electrified vehicles, buildings, and other grid-edge devices. Smart grid technologies funded and deployed at scale through this program must demonstrate a pathway to wider market adoption.

The first funding cycle will include both FY22 and FY23 allocations, up to $1.2 billion. Recipients must provide a cost share of at least 50% of the grant. 

Eligible entities include:

  • Institutions of higher education;
  • For-profit entities;
  • Non-profit entities;
  • State and local governmental entities; and
  • Tribal nations.

Concept papers are due December 16, 2022. The US Department of Energy will respond to concept papers by January 27, 2023. Full applications are due March 17, 2023. Applicants are allowed to submit more than one concept paper, provided that each describes a unique project.

Eligible entities are encouraged to review the following links for more information on Smart Grid Grants:

Rural And Municipal Utility Advances Cybersecurity Grant and Technical Assistance Program

The IIJA appropriates $250 million in funding to the Rural and Municipal Utility Advances Cybersecurity Grant and Technical Assistance Program. This funding offers grants and technical assistance to, and enter into cooperative agreements with, eligible entities to protect against, detect, respond to, and recover from cybersecurity threats.

Eligible entities include rural electric cooperative, municipally-owned electric utilities, other state-owned utilities, and small investor-owned utilities. Eligible uses include deploying advanced cybersecurity technologies for electric utility systems and increasing the participation of eligible entities in cybersecurity threat information sharing programs.

On October 20, 2022, the US Department of Energy posted a Request for Information to gather public input to develop the program. The Request for Information closes on December 19, 2022 at 5:00 pm EST. Eligible entities are encouraged to respond to the Request for Information or learn more about the program at the links below: 

Energy Improvements in Rural or Remote Areas Program

The IIJA appropriates $1 billion into this new program that is designed to provide financial assistance to improve, in rural or remote areas, the resilience, safety, reliability, and availability of energy and environmental protection from adverse impacts of energy generation. It is estimated that $200 million will be appropriated annually for fiscal years 2022 through 2026.

Eligible recipients include industry partners, utilities, national laboratories, universities, state and local governments, community-based organizations, tribal, environmental groups and cities, towns, or unincorporated areas with populations of fewer than 10,000 inhabitants. Eligible uses of program funding include the following:

  • Overall cost-effectiveness of energy generation, transmission, or distribution systems
  • Siting or upgrading transmission and distribution lines
  • Reducing greenhouse gas emissions from energy generation by rural or remote areas
  • Providing or modernizing electric generation facilities
  • Developing microgrids
  • Increasing energy efficiency

The US Department of Energy has hosted several workshops on this program. On October 4, 2022, the US Department of Energy issued a Request for Information to gather public input to develop the new program. The Request for Information closed on December 5, 2022. More program information will be offered from the US Department of Energy in the future.