The US Department of Energy (DoE) is asking for applications to receive part of $13bn set aside for critical transmission and distribution infrastructure.

First-round applications are open for competitive grants under the Grid Resilience & Innovation partnership programmes, which total $10.5bn in available funding, as well as the $2.5bn Transmission Facilitation programme.

An estimated 70 per cent of the USA’s transmission lines are over 25 years old, and this aging infrastructure makes American communities, critical infrastructure and economic interests vulnerable. New and upgraded transmission lines deliver electricity to where it’s needed, whether that means delivering wind and solar power to towns and cities across the country or moving power from one region to another that needs it in the face of storms, heat waves and other extreme weather.

An expanded transmission system is also critical to achieve cost-effectively the government’s goals of reducing greenhouse gas emissions 50 to 52% below 2005 levels in 2030 and achieving 100% clean electricity by 2035.

The announcement builds on efforts across the government to accelerate the buildout of long-distance, high-capacity transmission lines, including securing historic funding for transmission and grid upgrades.

The Bipartisan Infrastructure Law makes the largest investment ever in upgrading America’s power grid. Additionally, the Inflation Reduction Act provides nearly $3bn in transmission funding, including $2bn that will unlock additional funding in federal lending for projects designated by the secretary of energy to be in the national interest. The Inflation Reduction Act also provides loan authority for the DoE loan programmes office and funding for the US Department of Agriculture’s (USDA) Rural Utilities Service programmes that can support grid modernisation.

The government has also jumpstarted permitting for key transmission lines that cross federally managed lands. In 2022, three major transmission projects received final approvals for construction from the Department of the Interior:

• The Energy Gateway South transmission line across Wyoming, Colorado and Utah, with potential to unlock up to 2000MW of clean energy;
• The Ten West Link transmission line from Arizona to California, with potential to unlock up to 3200MW of clean energy; and
• Two segments of the Gateway West transmission line project from Wyoming to Idaho, with potential to unlock up to 765MW of clean energy.

The Department of the Interior has taken steps forward on environmental reviews for several new transmission lines. It has initiated the review for the Greenlink West transmission project from northern to southern Nevada, with potential to unlock up to 5000MW of clean energy. It has also initiated the review for the Cross-Tie 500kV transmission project from Utah to Nevada, with potential to unlock up to 1500MW of clean energy.

The Department of the Interior has also issued a draft environmental impact statement for the SunZia Southwest transmission project for two lines that could transport up to 4500MW of clean energy from New Mexico to markets in Arizona and California.

As part of the government’s Permitting Action Plan – a strategy to strengthen and accelerate federal permitting and environmental reviews across a range of infrastructure projects – agencies are collaborating to promote sound and timely reviews of transmission projects. The departments of the interior, agriculture, defence and energy and the Environmental Protection Agency signed a memorandum of understanding to improve coordination and prioritise reviews for renewable energy projects on federal lands, as well as the transmission lines needed to support these projects.

To mobilise new funding and enhance collaboration between all levels of government, industry, unions, local communities, environmental justice organisations and other stakeholders, the government launched the Building a Better Grid initiative with a focus on long-distance, high-voltage transmission lines. This initiative is administered by the Department of Energy’s Grid Deployment Office, which supports development of new transmission lines and a more resilient grid through new and modernised distribution facilities to ensure all communities have access to reliable, affordable electricity.

The Department of Energy is conducting a national transmission planning study to help identify pathways for necessary large-scale transmission system buildouts that meet regional and national interests. The study also identifies current and anticipated future capacity constraints and congestion on the nation’s electric transmission grid. These efforts include engagement with industry stakeholders, communities, and regional and local governments.

The Department of Energy recently launched the Grid & Transmission Programs Conductor to help inform state and local governments, tribes and territories, utility and industry partners, and other stakeholders about the application process and timelines for a range of federal financing opportunities totalling billions of dollars in grants, loans and other forms of financing. The conductor has now released an interactive feature for public and private partners to identify more easily which financing opportunities are right for them.

The departments of energy and the interior are developing recommendations, in consultation with key stakeholders, on offshore wind transmission planning and development. This work includes an Atlantic offshore wind transmission study and an analysis of west coast offshore wind transmission needs. The Inflation Reduction Act provides $100m to support transmission planning, modelling and analysis, including for offshore wind transmission.

The government is taking steps to help states, tribes, territories and local governments advance transmission projects. For example, the Department of Transportation issued guidance to help state agencies host transmission lines along existing highway rights-of-way. Additionally, the Inflation Reduction Act provides $760m in grants available to siting authorities and other state, local or tribal governmental entities to facilitate the siting of interstate transmission projects.

As part of the government’s Net-Zero Game Changers initiative, one of five near-term priorities is research and development to support a net-zero power grid and electrification, including transmission and distribution planning and operations. Efforts underway include the Department of Energy’s transmission reliability and energy storage programme, with support from the National Laboratories, to advance research and development needed for electricity delivery systems.