Part of Maryland’s electric grid was listed as a contender to be a National Interest Electric Transmission Corridor (NIETC), potentially unlocking federal financing and permitting tools to spur new transmission projects.
The U.S. Department of Energy (DOE) released a preliminary list of 10 potential National Interest Electric Transmission Corridors (NIETCs) to accelerate the development of transmission projects in areas that present an urgent need for expanded transmission. DOE also announced minimum eligibility criteria for direct loans under the Transmission Facility Financing (TFF) program, which finances the development of billions of dollars of transmission projects in designated NIETCs. DOE is now seeking public input on both the preliminary list of potential NIETCs and the TFF program application and evaluation process.
National Interest Electric Transmission Corridors
The Bipartisan Infrastructure Law amended the Federal Power Act to clarify the Secretary of Energy’s ability to designate any geographic area as a NIETC if it is determined that consumers are harmed, now or in the future, by a lack of transmission in the area and that the development of new transmission would advance important national interests for that region, such as increased reliability and reduced consumer costs.
A NIETC designation unlocks critical federal financing and permitting tools to spur transmission development, including direct loans through the TFF program, public-private partnerships through the Transmission Facilitation Program, and Federal siting and permitting authority of the Federal Energy Regulatory Commission (FERC) in certain limited circumstances. Developers and state and local siting authorities may also be able to leverage the environmental analysis conducted by DOE as part of the NIETC designation process to complete local siting and permitting processes, which could ultimately accelerate siting and permitting for transmission projects in these targeted, high-priority areas.
The preliminary list includes maps of each potential NIETC. The maps should be viewed as rough approximations. The geographic boundaries of any potential NIETC that continues in the designation process may ultimately differ from what is presented in the preliminary list. This announcement is not designating any final NIETC.
The Phase 2 public comment period is set to last for 45 days and close at 5:00 p.m. ET on June 24, 2024. Interested parties may provide comments on the geographic boundaries and potential impacts of NIETC designation on environmental, community, and other resources. For example, interested parties may provide information such as the location of wetlands, recreation areas, historic properties, residences, businesses, abandoned mines, and/or croplands. Submissions must be made by emailing NIETC@hq.doe.gov. There will be an informational webinar on May 16, 2024, at 3:30 p.m. ET. Registration is required.
Following Phase 2, DOE will prioritize which potential NIETCs move from the preliminary list to Phase 3, during which DOE will draft NIETC designation reports, conduct environmental reviews, proceed with government-to-government consultation with any impacted Tribal Nations as appropriate, and engage in robust public engagement. DOE anticipates announcing the narrowed list of potential NIETCs and initiating Phase 3 in the fall of 2024.
DoE Fast Facts on Mid-Atlantic Corridor
- Multiple parallel sections, each approximately 2 miles wide and up to 180 miles long
- Includes portions of Maryland, Pennsylvania, Virginia, and West Virginia
- Encompasses multiple interconnection points and largely parallels existing 500 kV transmission facilities
- Regional corridor within PJM Interconnection
Based on preliminary findings, transmission development in the potential Mid-Atlantic NIETC could…
- Maintain and improve reliability and resilience. Within-region transmission constraints in PJM’s footprint limit electricity imports during extreme weather events. PJM must address reliability criteria violations in the face of load growth and anticipated resource retirements.
- Reduce consumer costs. Areas in eastern Maryland and Virginia at the eastern terminus of the potential NIETC have experienced persistently high wholesale market prices in recent years.
- Meet future generation and demand growth. There is a need for additional within-region transmission in the Mid-Atlantic region to meet various future power sector scenarios. Analysis finds a 23% increase is needed by 2035 under moderate load and high clean energy growth scenarios,† in line with current market and policy conditions.