On July 24, 2024, the US Department of Energy’s (DOE) Grid Deployment Office (GDO) announced the project selections for the first round of the Transmission Siting and Economic Development (TSED) grant program, awarding over $350 million to states and communities across the country to support timely and equitable transmission infrastructure siting.
GPI’s Energy Systems team has spent the last year sharing educational and application guidance resources with eligible applicants across the country. We are thrilled to see some of those we assisted among the first-round recipients.
TSED allocates millions to enhance permitting and invest in communities
With the growing need for transmission infrastructure to meet reliability, affordability, clean energy, and resilience demands, timely siting and permitting of transmission has become essential. There is also a rising demand for improved outcomes for communities asked to host this infrastructure.
This is where the TSED grant program comes in. Established under the Inflation Reduction Act (IRA), TSED allocates a total of $760M in grants to states, tribes, and local governments to achieve the following:
- Enhance permitting authority capacity to prudently review transmission project applications in a timely manner with robust public input.
- Support economic development and community initiatives, including workforce development, community resources, emergency services, and other public services.
Three observations from TSED’s first-round recipients
In the first round, the DOE selected 20 projects to receive $370 million. Sixteen of those projects are for economic development initiatives and will receive most of the awarded funding, totaling $353.7 million.
The following are a few notable observations from the first-round recipients:
- Alignment with National Transmission Needs Study: DOE’s awards closely align with transmission needs identified in its 2023 National Transmission Needs Study. For example, awards in the north and south-central regions of the country will support projects that span across multiple grid planning regions, also known as interregional transmission projects. Meanwhile, DOE’s investments in coastal communities in the Northeast and Mid-Atlantic reflect the country’s growing ambition to deploy offshore wind.
- Support for regional planning process projects: DOE’s awards also align with projects coming from regional planning processes conducted by the Regional Transmission Operators (RTOs). For example, three awards were made in the Midwest related to projects identified in the first round of projects defined by the MISO
RTO Long Range Transmission Planning (LRTP) initiative, also known as the Tranche 1 portfolio. - Investment in community economic and infrastructure revitalization: The TSED economic development funding can be used for a wide array of projects and initiatives as long as they demonstrate real benefit to impacted communities. Awards include upgrades for water and sewage systems, fire department facilities, microgrid installations, job training and education, downtown revitalization, and eco-tourism development.
Prepare for TSED second round in fall 2024
Compiling and submitting any federal application is complex, and TSED is more complex than most. Applicants must articulate diverse concepts while integrating stakeholder voices and coordinating with state and local entities that don’t usually collaborate.
For instance, RTOs rarely communicate with state and local transmission siting authorities. While a state energy office might have great insight into transmission needs, it may lack knowledge about local economic development opportunities. With tight timelines between program announcements and deadlines, many applications can benefit from support in navigating these complexities to develop concepts and write comprehensive applications.
GPI’s Energy Systems team supported several successful applicants through round one, offering expertise in the transmission development process, application templates, technical guidance, and writing support.
Our team has the right mix of expertise across state government and transmission development to help galvanize ideas quickly into viable concepts, bring together robust interdisciplinary teams, and help applicants keep communities and community outcomes at the center of their focus.
While the DOE has not yet specified deadlines for round two of TSED, an announcement is likely to come this fall 2024. Once announced, applicants must develop and submit a concept paper, followed by the entire application due in winter 2024–2025.
We want to work with you!
We’re excited to continue to work with state and local governments for round two and support the development of concept papers and applications, as well as help applicants not selected in the first round with resubmissions.
Make sure to check out this high-level database of eligible transmission lines we developed to determine if you might have a valuable grant opportunity in your area. Please email our Energy Systems team for additional information or to inquire about direct assistance.
