U.S. Energy Department Allocates $43 Million to Support Communities Along Propel NY Power Line

The New York Power Authority will receive $43 million funding from the U.S. Energy Department for its Propel NY Energy Sustainable Communities Initiative, providing funding to disadvantaged communities affected by the project.

The funding is a part of the Transmission Siting and Economic Development, or TSED, grant program under the 2022 Inflation Reduction Act, or IRA.  The program recently awarded over $370 million to 20 projects across 16 states to speed up the permitting of high-voltage, interstate transmission projects, thus accelerating the development of a resilient and reliable electric grid.

The Propel NY transmission project, a collaboration between the New York Power Authority and developer New York Transco, is a 90-mile power line designed to increase transmission capacity by constructing new underground and submarine transmission infrastructure in Long Island.

The funding will be used f to support activities such as clean energy projects, education and career programs for residents in under-resourced communities. Once the project receives regulatory approval, construction will start in 2026 with operations set to begin in 2030.

The IRA includes several provisions for electricity transmission projects. The $2 billion Transmission Facility Financing program awards direct loans for eligible transmission projects within a National Interest Electric Transmission Corridor. IRA provides $760 million for the TSED initiative to support a faster siting and permitting process for transmission projects. The IRA also allocates $100 million for offshore wind and interregional transmission analyses and convenings.