U.S. Energy Department Announces Initial List of National Interest Transmission Corridors

The U.S. Energy Department on May 9 released an initial list of ten potential National Interest Electric Transmission Corridors (NIETCs) aimed at accelerating transmission project expansions in areas with urgent needs for expanded capacity. These corridors, spanning nine regions identified in the department’s National Transmission Needs Study, hold significant promise for advancing transmission to meet regional needs. This initiative includes the introduction of minimum eligibility criteria for direct loans under the Transmission Facility Financing (TFF) program. This marks the onset of Phase 2 within the NIETC designation process, inviting stakeholder feedback on the delineation of geographical borders and the likely impacts of NIETC designation on environmental and community resources. This collaborative approach underscores the department’s commitment to transparency and community involvement in shaping the future of U.S. energy infrastructure.

The NIETCs, designated under the 2021 Infrastructure Investment and Jobs Act, or IIJA, aim to address insufficient transmission capacity, facilitating renewable energy integration and boosting interconnection capacity. This designation unlocks federal financing tools like the TFF program, offering direct loans for eligible projects within NIETCs, supported by a $2 billion allocation. The department seeks public input on project scopes and financing requirements, welcoming feedback from utilities and developers. Following Phase 2, potential NIETCs will be prioritized for Phase 3 in fall 2024, involving drafting reports, environmental reviews, and engagement with Tribal Nations.

The department issued final guidance in January for a process to identify potential geographic areas for designation as NIETC. The Federal Power Act requires the department to issue a report once every three years to designate as a NIETC any area experiencing, or expected to experience, transmission capacity constraints or congestion that affects consumers. The initiative serves to unlock federal financing and permitting tools required to advance transmission development in the areas where it is needed most. The designation must be based on the energy department’s triennial transmission needs study or other information related to transmission capacity constraints or congestion.

Comments are due by June 24.