U.S. Energy Department Awards Over $470 Million to States and Tribal Nations for Grid Modernization

The U.S. Energy Department on Oct. 25 announced nearly $474 million in fiscal year 2024 funding for states, territories, and tribal nations through the Grid Resilience State and Tribal Formula Grants program supported by the 2021 Infrastructure Investment and Jobs Act. This brings the total awards under the program to $1.3 billion since FY 2022. The department anticipates distributing $2.3 billion under the program over five years.

Overseen by the Grid Deployment Office, these grants finance projects to build more resilient power grids capable of withstanding extreme weather disruptions and integrating renewable sources of power.                  The total funding in FY 2024 includes projects in five territories and 254 Tribal Nations. The formula to determine the funding amount incorporates several criteria, such as the population and size of a given area, the risk and severity of disruptive events, and the cost of past mitigation activities.

Past energy projects focused on leveling the playing field for under-resourced communities and maximizing community benefit. Examples of projects awarded in the previous years include the Citizen Potawatomi Nation in Shawnee, Oklahoma. The project utilized $1.7 million from the grant program to install almost 1.7 miles of new underground transmission lines. The Estes Park project in Colorado, which secured $700,000 from the program, financed the installation of the town’s first battery storage system, facilitating the future development of a microgrid. The battery storage system will provide a reliable power supply and help integrate renewable energy into the grid.

With the Biden administration’s Justice40 initiative being a key part of the Investing in America agenda, the department has launched several initiatives to reach underserved communities. This month, the department announced the launch of a new community microgrid program to help disadvantaged and Indigenous communities in rural regions. In September, the department announced $44 million for the development of clean energy projects on tribal lands.