U.S. Energy Department Announces $77 Million to Modernize Electric Grid, Enhance Resilience

The U.S. Energy Department on June 16 announced the selection of seven states, three tribal nations, and the District of Columbia as the second cohort to benefit from over $77 million in Grid Resilience State and Tribal Formula Grants. In May, the department announced that four states and two tribal nations had been selected to receive the first round of funding, totaling $50 million. These grants, supported by the 2021 Infrastructure Investment and Jobs Act, or IIJA, aim to modernize the electric grid, reducing the effects of extreme weather and natural disasters while ensuring power sector reliability. The IIJA, which represents the largest investment in U.S. infrastructure, includes major provisions important to the energy industry, ranging from building out the first national network of electric vehicle (EV) charging stations to modernizing the electric transmission grid and expanding clean energy.

The funding supports the Biden administration’s vision of affordable, reliable, and 100 percent clean electricity for all communities.  The commitments are part of the Investing in America agenda to spur domestic manufacturing, strengthen supply chains, boost U.S. competitiveness, create jobs, and foster a clean-energy economy to combat climate change and enhance community resilience.

The Grid Resilience State and Tribal Formula Grants will distribute $2.3 billion over the next five years to States, Territories, and tribes, including Alaska Native Corporations where the distribution of funds is determined by factors like population size, land area, disruptive event probabilities, and historical mitigation. The allocation will prioritize projects that provide clean, affordable, and reliable energy while generating substantial community benefits.

Selected recipients for fiscal years 2022 and 2023 include:

• Coushatta Tribe of Louisiana: $0.711 million for developing distributed energy resources and strengthening the community through partnerships and labour standards.
• District of Columbia: $3 million for deploying battery energy storage systems, microgrids, and advanced grid solutions.
• Hawaii: $6.1 million for projects benefiting disadvantaged communities and engaging community leadership.
• Idaho: $9.3 million for resilience investments, grid infrastructure modernization, and consumer engagement.
• Indiana: $9.2 million for improving grid resilience to support critical community services during disasters.
• Iowa: $11.8 million for strengthening the grid against severe weather and expanding job opportunities.
• Mohegan Tribe: $0.317 million for protecting critical community facilities and enhancing tribal workforce capabilities.
• Nevada: $10.5 million for ensuring an equitable energy future and reducing the impact of disruptive events on vulnerable populations.
• Pennsylvania: $16.2 million for protecting underserved communities and promoting clean energy projects.
• Scotts Valley Band of Pomo Indians: $0.266 million for increasing resilience to wildfires and supporting electric production during outages.
• Wisconsin: $10.2 million for modernizing and securing Wisconsin’s electric grid and expanding workforce training programs.

The application deadline for states and territories for fiscal years 2022 and 2023 was May 31, 2023. For Indian tribes, including Alaska Native Corporations, the application deadline for the same fiscal years is Aug. 31, 2023.

States and tribal nations awarded in the first round are Louisiana, New Mexico, North Dakota, South Carolina, Ewiiaapaayp Band of Kumeyaay Indians, and Navajo Nation.