The Transmission Facilitation Program (“TFP”), a federal clean-energy initiative arising out of the 2021 Infrastructure Investment and Jobs Act that aims to enhance the capacity, resiliency, and reliability of the nation’s bulk power grid, is seeking applications for funding once again.
On February 6, 2024, the U.S. Department of Energy (“DOE”) announced a Request for Proposals (“RFP”) for the second round of the TFP. The announcement highlights previous commitments made under the TFP by DOE, which in October 2023 awarded up to $1.3 billion in capacity contracts to three proposed transmission facilities: the Cross-Tie 500kV Transmission Line Project, which will run between Nevada and Utah; the Southline Transmission Project, bridging Arizona and New Mexico; and the Twin States Clean Energy Link, connecting Québec and southern New Hampshire.
The mechanics of this second round of the TFP, which will award up to $1.2 billion to the selected projects, look much the first round’s (see our previous post on the TFP to understand TFP eligibility requirements, evaluative criteria, and award specifications). Once again, DOE will likely choose to fund selected projects through capacity contracts, which provide revenue support, though it may choose to offer debt or equity support through loan capital or public-private partnerships. And, once again, DOE will target late-stage and “shovel-ready” projects, acting as an “anchor subscriber” to provide certainty not only to private investors, but also to other transmission customers, who are tentative to purchase capacity on lines until they can be sure the line will be in-service and available when need.
This second RFP is open to new projects over 1,000 MW in capacity, or projects of over 500 MW where the project seeks to upgrade an existing line or utilize an existing infrastructure corridor. The RFP announces certain key process dates as well: the submission deadline for Part I of the application is March 11, and the submission deadline for Part II (which will be open only to invited applicants) is estimated at around mid-May. Awards are expected to be announced in October of this year.
