Infrastructure Investment and Jobs Act – Power and Energy

Points of Contact:

Loren Monroe, Principal and State and Local Advocacy Practice Headloren_monroe@bgrdc.com

Pete Landrum, Vice President plandrum@bgrdc.com

Jerry Strickland, Vice President & Texas Director, State Advocacy and Appropriations – jstrickland@bgrdc.com

Infrastructure Investment and Jobs Act

Power and Energy

Topline Funding: $73 billion

Overview: The Infrastructure Investment and Jobs Act (IIJA) authorizes $73 billion (B) in new fundings for grant programs and initiatives to support investment in energy infrastructure. Also, of the new energy programs introduced by the IIJA funds are made available in the form of grants to incentivize investment in energy efficiency, greenhouse gas emission reduction, and investments in clean energy technologies. Overall, these funds are authorized to improve infrastructure related to power, resilience, wells, and water programs.

PROGRAMS & FUNDING STREAMS

*Itemized across Electric Grid & Energy Transmission, Cybersecurity & Preparedness, Batteries and Storage, Clean Energy & Renewables, Nuclear Power, Environment & Remediation.

 

I. Electric Grid & Energy Transmission

Preventing OuTages and enhancing the RESILIENCE of the electric grid

Authorizes $5 billion (B) for a new grant program to support activities that reduce the likelihood and consequence of impacts to the electric grid due to extreme weather, wildfire, and natural disaster.

Agency of Jurisdiction: Department of Energy (DOE)

Eligible Grantees: States (with flow through to localities), federally recognized tribes, electric grid operators, electricity storage operators, electricity generators, transmission owners or operators, distribution providers, fuel suppliers, and other relevant entities the Secretary deems applicable.

Timing: The grant program must be established no later than 180 days after the enactment of the measure.

Federal Cost-Share: States and federally recognized tribes are required to match 15% of the amount of each grant.

PROGRAM UPGRADING OUR ELECTRIC GRID RELIABILITY AND RESILIENCY

Authorizes $5B for the Energy Infrastructure Federal Financial Assistance program and $1B for Rural and Remote Areas. The funding is authorized to demonstrate innovative approaches to transmission, storage, and distribution infrastructure to enhance grid resilience.

Agency of Jurisdiction: DOE – Department of Homeland Security (DHS) – Federal Energy Regulatory Commission (FERC) – North American Electric Reliability Corporation (NAERC)

Eligible Grantees: States, and publicly and privately regulated entities on a cost-shared basis.

Timing: Immediately.

Federal Cost-Share: N/A

TRANSMISSION FACILITATION PROGRAM

Authorizes $2.5B for a revolving loan fund to allow DOE to serve as an “anchor-tenant” for a new transmission line or an upgrade of an existing line. Additionally, the measure permits DOE to buy a certain portion of the planned capacity (not more than 50 percent), which it may then sell after determining that the transmission project has ensured financial viability. Allows DOE to enter public private partnerships or issue loans.

Agency of Jurisdiction: DOE

Eligible Grantees: Any entity seeking to carry out a project relating to transmission facilitation.

Timing: Immediately.

Federal Cost-Share: N/A

Notes: The IIJA provides FERC with the backstop authority to override state objections to transmission lines if a state commission denies an application seeking approval for the siting of such transmission facilities (Sec. 40105). This authority was previously limited to gas pipelines.

SMART GRID INVESTMENT MATCHING GRANT PROGRAM

Authorizes $3B to the Smart Grid Investment Matching Grant Program that provide flexibility and help quickly rebalance the electrical system, facilitate the aggregation or integration of distributed energy resources, provide energy storage to meet fluctuating, provide voltage support, integrate intermittent generation sources, increase the network’s operational transfer capacity, and anticipate and mitigate impacts of extreme weather events or natural disasters on grid resilience.

Agency of Jurisdiction: DOE

Eligible Grantees: Investor-owned and municipality-owned utilities, and rural electric cooperatives.

Timing: Immediately.

Federal Cost-Share: N/A

STATE ENERGY PROGRAM

Authorizes $500M for the State Energy Program to support the transmission and distribution planning activities and to include programs that help reduce carbon emissions in the transportation sector and accelerate the use of alternative transportation fuels for, and the electrification of State government vehicles, fleet vehicles, taxis, and ridesharing services, mass transit, school buses, ferries, and privately owned passenger and medium- and heavy-duty vehicles.

Agency of Jurisdiction: DOE

Eligible Grantees: State and local entities.

Timing: Immediately.

Federal Cost-Share: N/A

 

II. CyberSecurity & Preparedness

RURAL AND MUNICIPAL UTILITY ADVANCED CYBERSECURITY GRANT AND TECHNICAL ASSISTANCE PROGRAM

Authorizes $250M for grants and technical assistance for utilities to detect, respond to, and recover from cybersecurity threats.

Agency of Jurisdiction: DOE – DHS – FERC – NAERC – ESCC

Eligible Grantees: Rural electric cooperatives, utilities owned by a political subdivision of a state or an agency, a not-for-profit entity, or an investor-owned electricity utility that sells less than 4M megawatt hours of electricity per year

Timing: The grant program must be established no later than 180 days after the enactment of the measure.

Federal Cost-Share: N/A

ENHANCED GRID SECURITY PROGRAMS

Authorizes $350M for three enhanced grid security programs, which includes the creation of a program to develop advanced cybersecurity applications and technologies for the energy sector, a program to enhance and test emergency response capabilities of DOE, and a program to increase the functional preservation of electric grid operations or natural gas and oil operations in the face of threats and hazards. This includes $250M for the cybersecurity R&D program, $50M for the operational support for the energy sector cyber-resilience program, and $50M for modeling and assessment for energy infrastructure risk.

Agency of Jurisdiction: DOE – DHS

Eligible Grantees: Other Federal agencies, States, Indian Tribes, Tribal organizations, territories, other stakeholders.

Timing: Immediately.

Federal Cost-Share: N/A

 

III. Batteries & Storage

BATTERY MATERIAL PROCESSING GRANT PROGRAM

Authorized over $6B for battery materials, which includes $3B for battery material processing grants, $3B for battery manufacturing and recycling grants, $10M for the recycling prize and $125M for the battery recycling programs at DOE. Also, establishes a grant program within DOE’s Office of Fossil Energy to ensure the U.S. has a viable battery materials processing industry.

Agency of Jurisdiction: DOE

Eligible Grantees: State and local entities.

Timing: The grant program must be established no later than 180 days after the enactment of the measure.

Federal Cost-Share: State and Indian Tribes are required to match 50% of the amount of each grant.

ELECTRIC DRIVE VEHICLE BATTERY RECYCLING AND SECOND-LIFE APPLICATIONS PROGRAM

Authorizes $200M for researching, developing and demonstrating electric vehicle battery recycling and second-life application.

Agency of Jurisdiction: DOE

Eligible Grantees: Projects with the potential to reduce costs to consumers and promote accessibility, projects that increase transparency to consumers, projects that will support economically distressed areas, and projects that support other opportunities the secretary deems relevant.

Timing: Applications for funds will be open no later than 90 days after the enactment of the measure.

Federal Cost-Share: N/A

ADVANCED ENERGY MANUFACTURING AND RECYCLING GRANT PROGRAM

Authorizes $750M for a grant program focused on small and medium-sized manufacturers to enable them to build new or retrofit existing manufacturing and industrial facilities to produce or recycle advanced energy products in communities where coal mines or coal power plants have closed.

Agency of Jurisdiction: DOE

Eligible Grantees: Manufacturing firms in coal communities with gross annual sales under $100M, with fewer than 500 employees at the plant site, and with an energy bill of less than $2.5M per year.

Timing: The grant program must be established no later than 180 days after the enactment of the measure.

Federal Cost-Share: N/A

WESTERN WATER INFRASTRUCTURE

Authorizes $8.3B for FY22-26 for Bureau of Reclamation western water infrastructure. These funds include: $3.2B for aging infrastructure; $1.15B for water storage, groundwater storage and conveyance projects (includes $100M for small water storage); $1B for water recycling and reuse projects (includes $450M for large water recycling projects); $250M for desalination projects; $1B for rural water projects; $500M for dam safety projects; $300M for Drought Contingency Plan (includes $50M for Upper Basin States); $400M for SMART Water and Energy Efficiency Grants (includes $100M for natural infrastructure projects); $100M for the Cooperative Watershed Management Program; $250M for Aquatic Ecosystem Restoration Program; $100M for multi-benefit watershed projects; and $50M for Colorado River fish species recovery programs.

Agency of Jurisdiction: DOI – Bureau of Reclamation

Eligible Grantees: Other federal agencies, and state and local entities.

Timing: Immediately.

Federal Cost-Share: States are required to cover 50% of federal project costs, and 25% of non-federal projects.

 

IV. Clean Energy & Renewables

CARBON DIOXIDE TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION

Authorizes $1.5B, which includes the establishment of a CO2 Infrastructure Finance and Innovation Act (CIFIA) program to provide flexible, low-interest loans for CO2 transport infrastructure projects and grants for initial excess capacity on new infrastructure to facilitate future growth. CIFIA will help facilitate private sector investment in CO2 infrastructure.

Agency of Jurisdiction: DOE

Eligible Grantees: Other federal agencies, state and local entities, and private sector entities.

Timing: Eligible applications will be funded within 60 days of submission.

Federal Cost-Share: State will be required to provide 20% of the costs for projects.

CARBON STORAGE VALIDATION AND TESTING

Authorizes $2.5B. which expands DOE’s Carbon Storage Validation and Testing program to include large-scale commercialization of new or expanded carbon sequestration projects and associated carbon dioxide transport infrastructure.

Agency of Jurisdiction: DOE

Eligible Grantees: Projects with substantial carbon dioxide storage capacity of that will store carbon dioxide from multiple carbon capture facilities.

Timing: Immediately.

Federal Cost-Share: N/A

CARBON REMOVAL

Authorizes $3.5B for direct air capture projects to establish the four regional hubs. Authorizes a program for projects that contribute to the development of four regional direct air capture hubs.

Agency of Jurisdiction: DOE

Eligible Grantees: Direct air capture projects or a component project of a regional direct air capture hub.

Timing: Applications will be solicited no later than 180 days after enactment of this measure.

Federal Cost-Share: N/A

CRITICAL MINERALS MINING AND RECYCLING RESEARCH

Authorizes over $400M for the pilot project grant program, to establish a critical mineral mining, recycling, and reclamation research and development grant program within the Department of Energy. Also, the funds would establish a Critical Minerals Subcommittee of the National Science and Technology Council to coordinate science and technology efforts on critical minerals including recycling and substitute materials, and a Department of Energy grant program for pilot projects that process, recycle, or develop critical minerals. The funds are authorized to improve the United States Geological Survey’s capacity to map the location of critical minerals, to share information about those locations, and to support research related to supplying those minerals

Agency of Jurisdiction: DOE – DOI – Chamber of Commerce

Eligible Grantees: Institutions of higher education, national laboratories, nonprofit organizations, consortia of entities that collaborate with private industry.

Timing: Immediately.

Federal Cost-Share: N/A

ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM

Authorizes $550M for the Energy Efficiency and Conservation Block Grant Program. Also, allows funding to be used in programs that finance energy efficiency and other clean energy capital investments, projects, loan programs, and performance contracting programs.

Agency of Jurisdiction: DOE

Eligible Grantees: Projects that that finance energy efficiency and other clean energy capital investments.

Timing: Immediately.

Federal Cost-Share: N/A

ADDITIONAL CLEAN HYDROGEN PROGRAMS

Authorizes $8B, which includes funds for projects for at least four regional clean hydrogen hubs that demonstrate the production, processing, delivery, storage, and end-use of clean hydrogen. A clean hydrogen manufacturing and recycling program to support a clean hydrogen domestic supply chain.

Agency of Jurisdiction: DOE

Eligible Grantees: Projects with feedstock diversity, end-use diversity, geographic diversity, hubs in natural gas-producing regions, opportunities to increase employment.

Timing: Applications will be solicited no later than 180 days after enactment of this measure.

Federal Cost-Share: N/A

CLEAN ENERGY DEMONSTRATION PROGRAM ON CURRENT AND FORMER MINE LAND

Authorizes $500M to establishes a program that demonstrate the technical and economic viability of carrying out clean energy projects on current and former mine land in a compatible manner with any existing operations.

Agency of Jurisdiction: DOE

Eligible Grantees: Projects that demonstrates technologies in solar, micro-grids, geothermal, direct air capture, fossil-fueled electricity generation with carbon capture, energy storage, or advanced nuclear technologies.

Timing: Immediately.  Only 5 projects will be selected at the discretion of the Secretary of Energy

Federal Cost-Share: N/A

 

V. Nuclear Power

CIVIL NUCLEAR CREDIT PROGRAM

Authorizes $6B to provide the DOE with the authority, in consultation with the heads of applicable federal agencies, to establish a process to evaluate bids through an auction process and select certified nuclear reactors to be allocated credits.

Agency of Jurisdiction: DOE

Eligible Grantees: Certified nuclear reactors.

Timing: Applications will be solicited no later than 120 days after enactment of this measure.

Federal Cost-Share: N/A

MAINTAINING AND ENHANCING HYDROELECTRICITY INCENTIVES

Authorizes $553.6M to make incentive payments to the owners and operators of hydroelectric facilities for capital improvements related to maintaining and enhancing hydroelectricity generation by improving grid resiliency, improving dam safety, and environmental improvements.

Agency of Jurisdiction: DOE

Eligible Grantees: State and local entities.

Timing: Immediately.

Federal Cost-Share: N/A

 

VI. Environment and Remediation

ORPHANED WELL SITE PLUGGING, REMEDIATION, AND RESTORATION

Authorizes $4.707B for programs to plug, remediate, and reclaim orphaned wells on federal, state, and Tribal lands. States must reimburse the federal government in full for grants within 5 years after funds are delivered to the state.

Agency of Jurisdiction: DOE

Eligible Grantees: Federal agencies, states, or tribal lands with orphaned wells and plans to plug, remediate, or restore the wells.

Timing: The program must be established no later than 60 days after enactment of this measure.

Federal Cost-Share: The average annual amount expended by the state during FY 2010-2019 to plug, remediate, and reclaim orphaned wells or to decommission associated pipelines and infrastructure.

WILDFIRE RISK REDUCTION

Authorizes $3.3692B to the Department of the Interior (DOI) and the Forest Service for wildfire risk reduction by providing funding for community wildfire defense grants, mechanical thinning, controlled burns, the Collaborative Forest Restoration Program, and firefighting resources.

Agency of Jurisdiction: DOI – Forest Service – U.S. Department of Agriculture (USDA)

Eligible Grantees: Projects on federal land, Tribal land, or other land with a high wildfire hazard potential.

Timing: Immediately. Restoration treatments must be conducted by September 30, 2027.

Federal Cost-Share: N/A

ABANDONED MINE RECLAMATION FUND AUTHORIZATION AND APPROPRIATIONS

Authorizes $11.293B in funds for the Abandoned Mine Land Reclamation Fund. States and Indian Tribes cannot receive less than $20M each in funding.

Agency of Jurisdiction: DOI

Eligible Grantees: States and Indian Tribes with proposed projects for reclaiming abandoned mines.

Timing: Immediately.

Federal Cost-Share: N/A

ABANDONED HARDROCK MINE RECLAMATION

Authorizes $3B to establish a new program within the Department of the Interior to inventory, assess, decommission, reclaim, respond to hazardous substance releases on, and remediate abandoned hardrock mine land.

Agency of Jurisdiction: DOI

Eligible Grantees: States, Tribes, and Federal land with jurisdiction over abandoned hardrock mine land.

Timing: No later than 90 days after enactment of this measure.

Federal Cost-Share: N/A

Notes: 50% of funds are reserved for States and Tribes, and 50% of funds are reserved for Federal lands.

ECOSYSTEM RESTORATION

Authorizes $2.130B for the Department of the Interior and the Forest Service to restore the ecological health of federal lands and waters and of private lands, through voluntary efforts, via a variety of programs, including through partnering with States.

Agency of Jurisdiction: DOI – Forest Service – U.S. Department of Agriculture (USDA)

Eligible Grantees: Projects on federal land, Tribal land, or other land with a high wildfire hazard potential.

Timing: No later than 90 days after enactment of this measure. Funds are to be expended 5 years after the enactment of this act.

Federal Cost-Share: N/A