WASHINGTON (Reuters) – The U.S. Department of Energy has focused on three regions of the country that it has identified as having a high need for new electric transmission infrastructure and eligible for future federal funding, it announced on Monday.
The DOE selected Lake Erie-Canada, including parts of Lake Erie and Pennsylvania; the Southwestern Grid Connector, including parts of Colorado, New Mexico and a small portion of western Oklahoma; and the Tribal Energy Access Corridor, including central portions of North Dakota, South Dakota, Nebraska and five tribal reservations, as electric transmission corridors of national significance.
WHY IT’S IMPORTANT
The DOE has reduced the initial list of corridors of national importance from ten to three. The designation would allow the federal government to expedite the development of grid expansion projects. It aims to help areas struggling with high electricity bills and power outages attract more investment in transmission capacity.
Demand in the US is growing significantly due to the rapid expansion of data centers and artificial intelligence.
BY THE NUMBERS
The projects could qualify for federally subsidized loans. The Inflation Reduction Act of 2022 allocated $2 billion to cover the credit subsidy costs of those loans, and the DOE is seeking public input on the scope of eligible projects and project financing requirements.
KEY CONTEXT
The comment period for the three corridors would extend until February 2025, after President-elect Donald Trump takes office. Trump has said he may declare a national energy emergency to speed the construction of new electrical capacity and domestic energy. His transition team was not immediately available for comment.
