December 25, 2024
DOE Awards $207M in Grid Resilience Investments
The California Energy Commission will distribute the $67.5 million awarded to the state by DOE according to the results of a competitive selection process.
The California Energy Commission will distribute the $67.5 million awarded to the state by DOE according to the results of a competitive selection process. | California Energy Commission
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DOE has announced $324 million in grants to 29 recipients so far this year.

The Department of Energy on Thursday announced the latest recipients of federal grant money intended to modernize the U.S. power grid against natural disasters caused by climate change, awarding $207.6 million to nine states and three tribal nations.

The grants are part of the $5 billion allocated to grid-hardening projects under the bipartisan Infrastructure Investment and Jobs Act (IIJA), which passed in 2021. Half of the spending is earmarked for state, territory, and tribal governments, to be distributed over the next five years. (See Bipartisan Infrastructure Bill Offers Funding for Grid, EVs.)

The nine states and three tribes announced on Thursday comprise the third cohort of recipients to be unveiled since the grants began earlier this year. Applications for the 2022 and 2023 fiscal years closed May 31 for state and territory governments; tribal governments have until Aug. 31 to submit their applications for the year.

Among the states included in Thursday’s announcement were California and Texas, the largest beneficiaries under the program so far with $67.5 million and $60.6 million awarded respectively. According to their fact sheets, California’s goals for the funding include reducing the frequency and duration of power outages in the state, advancing California’s clean energy goals and creating clean-energy jobs. Texas plans to use the money to identify gaps in grid resilience and improve weather-related resilience in critical infrastructure facilities.

Other recipients include:

    • Kansas — $13.3 million;
    • Kentucky — $11.1 million;
    • Maine — $4.4 million;
    • Michigan — $14.9 million;
    • Minnesota — $11.9 million;
    • Oregon — $19.9 million; and
    • Rhode Island — $3.4 million.

In addition, three Native American tribes — the Metlakatla Indian Community and the Native Village of Eagle in Alaska, and the Standing Rock Sioux Tribe of North and South Dakota — will receive a total of $622,000.

In all, the program has chosen 20 states, eight tribes, and the District of Columbia to receive $324 million so far this year. Eligibility is decided based on five factors: population, area, probability of disruptive events, severity of events and expenditure on mitigation efforts.

State and tribal governments must provide a 15% match to the federal allocation; entities receiving sub-awards from the grant recipient generally must provide a 100% match, although smaller utilities may match as little as one-third.

“Renewable energy has helped many parts of the country withstand a crippling heat dome, and the [administration’s] agenda will increase the amount of clean power sources available on the nation’s grid,” said Energy Secretary Jennifer Granholm. “DOE is excited to announce a continued stream of funding aimed at strengthening America’s workforce and preparing the nation for a more resilient, clean energy future. These grants will help modernize the electric grid to reduce impacts of extreme weather and natural disasters while enhancing power sector reliability.”

DOE’s resilience investments form just part of the expenditures planned for the U.S. grid under the IIJA. The Biden administration plans to invest more than $15 billion under its Building a Better Grid initiative launched last year, including the grid resilience program, a $2.5 billion program to upgrade transmission lines, the $10.5 billion Grid Resilience and Innovation Partnerships program to support national resilience projects and the $760 million Transmission Siting and Economic Development Grants program. (See DOE Opens Applications for $6B in Grid Funding.)

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