[Federal Register Volume 87, Number 92 (Thursday, May 12, 2022)]
[Notices]
[Pages 29142-29149]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-10137]


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DEPARTMENT OF ENERGY


Notice of Intent and Request for Information Regarding 
Establishment of a Transmission Facilitation Program

AGENCY: Grid Deployment Office, Department of Energy.

ACTION: Notice of intent (NOI); request for information (RFI).

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SUMMARY: The Infrastructure Investment and Jobs Act (IIJA or the Act) 
directs the Secretary of Energy (Secretary) to establish a program, to 
be known as the ``Transmission Facilitation Program'' or ``TFP,'' under 
which the Secretary shall facilitate the construction of electric power 
transmission lines and related facilities. The U.S. Department of 
Energy (DOE or Department) Grid Deployment Office is issuing this NOI 
to notify interested parties of its intent to implement the TFP and to 
describe the proposed approach for participation by eligible entities 
in the TFP. The Department also seeks input from all stakeholders 
through this RFI regarding the application process, criteria for 
qualification, and selection of eligible projects to participate in the 
TFP.

DATES: Written comments and information are requested on or before June 
13, 2022.

ADDRESSES: Interested parties may submit comments by any of the 
following methods: Federal eRulemaking Portal: https://www.regulations.gov. Follow the instructions for submitting comments. 
Instructions: All submissions received must include the agency name and 
identifier.

FOR FURTHER INFORMATION CONTACT: Requests for additional information 
may be sent to: <a href="/cdn-cgi/l/email-protection#055177646b76686c76766c6a6b4364666c696c7164716c6a6b456d742b616a602b626a73"><span class="__cf_email__" data-cfemail="194d6b78776a74706a6a7076775f787a7075706d786d707677597168377d767c377e766f">[email protected]</span></a>. Questions about 
the NOI and RFI may be addressed to Carrie Cobb at (202) 586-1411.

SUPPLEMENTARY INFORMATION: 

I. Background

    On November 15, 2021, President Joseph R. Biden, Jr. signed the 
Infrastructure Investment and Jobs Act (IIJA, also known as the 
Bipartisan Infrastructure Law (BIL)). The BIL is a once-in-a-generation 
investment in infrastructure, which provides the backbone for a more 
sustainable, resilient, and equitable economy through enhancing U.S. 
competitiveness in the world, diversifying regional economies to 
include supply chain and manufacturing industries, creating good union 
jobs, and ensuring stronger access to economic and other benefits for 
underserved communities. The BIL appropriates more than $62 billion to 
DOE to ensure the clean energy future delivers true economic prosperity 
to the American people. Principles of equity and justice will guide BIL 
implementation, including the implementation of the TFP, consistent 
with the Biden Administration's commitments to ensure that 
overburdened, underserved, and underrepresented individuals and 
communities have access to federal resources.\1\
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    \1\ See E.O. 13985, Advancing Racial Equity and Support for 
Underserved Communities; E.O. 14020, Establishment of the White 
House Gender Policy Council; and E.O. 14008, Tackling the Climate 
Crisis at Home and Abroad.
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    As part of the BIL implementation, DOE is authorized to borrow from 
the Treasury, without further appropriation and without fiscal year 
limitation, up to $2.5 billion in outstanding repayable balances at any 
one time for the purpose of carrying out the TFP. The expansion of 
transmission infrastructure facilitated by the TFP lays the groundwork 
for increasing the availability of lower cost and low carbon 
electricity sources. This will support the Biden Administration's goal 
to achieve a carbon-free electric grid by 2035 and a net zero emissions 
economy by 2050.\2\ In addition, the BIL directs that DOE support 
strong and equitable economic growth,\3\ enhanced transmission system 
reliability and resilience, increased interregional transfers and the 
use of technology that enhances transmission system capacity, 
efficiency, resilience, or reliability.
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    \2\ FACT SHEET: President Biden sets 2030 Greenhouse Gas 
Pollution Reduction Target Aimed at Creating Good-paying Union Jobs 
and Securing U.S. Leadership on Clean Energy Technologies, https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/22/fact-sheet-president-biden-sets-2030-greenhouse-gas-pollution-reduction-target-aimed-at-creating-good-paying-union-jobs-and-securing-u-s-leadership-on-clean-energy-technologies/.
    \3\ Strengthening prosperity--by expanding good, safe union jobs 
and supporting job growth through investments in domestic 
manufacturing--is a key goal set by President Biden and is discussed 
in depth in his Executive Orders (EOs) on Ensuring the Future Is 
Made in All of America by All of America's Workers (E.O. 14005), 
Tackling the Climate Crisis at Home and Abroad (E.O. 14008), Worker 
Organizing and Empowerment (E.O. 14025), and Promoting Competition 
in the American Economy (E.O. 14036).
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    Amounts borrowed by DOE, together with all amounts received by DOE 
as receipts, collections, and recoveries relating to the eligible 
projects

[[Page 29143]]

supported under the TFP (including, for example, capacity contract 
marketing receipts, loan repayments, and eligible entity contributions 
under a public-private partnership) and any amounts appropriated for 
the program, will be placed in the ``Transmission Facilitation Fund'' 
for the purpose of carrying out the TFP. The TFP offers three forms of 
facilitation to assist eligible with the construction of new, 
replacement, and upgraded high-capacity transmission lines.: Capacity 
contracts, loans, and public-private partnerships. The IIJA directs the 
Secretary of Energy to prioritize projects that, to the maximum extent 
possible, improve resilience and reliability of the grid; facilitate 
inter-regional transfer of electricity; lower electric sector 
greenhouse gas emissions; and use technology that enhances the 
capacity, efficiency, resilience, or reliability of the transmission 
system. The TFP must judiciously use the tools included in the statute 
to support projects that both meet the statute's articulated goals and 
provide a reasonable expectation that the costs of capacity contracts, 
loans, or public-private partnerships borne by the Federal Government 
will be repaid.
    Community engagement will be central to the successful 
implementation of all phases of the TFP. Projects funded through the 
BIL provisions will include Equity, Environmental and Energy Justice 
principles and priorities. Equity requires the consideration of 
existing barriers underserved and underrepresented individuals and 
communities face when accessing Federal resources. Environmental and 
energy justice principles include procedural justice, distributive 
justice, recognition justice, and restorative justice. In keeping with 
the administration's goals, and as an agency whose mission includes 
strengthening our country's energy prosperity, DOE intends to use this 
program to support the creation of good-paying jobs with the free and 
fair choice to join a union, the incorporation of strong labor 
standards, and high-road workforce development, especially registered 
apprenticeship and quality pre-apprenticeship. This program will also 
support the Justice40 Initiative, which aims to provide 40 percent of 
the overall benefits of certain Federal investments to Disadvantaged 
Communities.

II. Purpose of NOI and RFI

    DOE is seeking opportunities that optimize the use of the available 
TFP funds to accelerate the deployment of transmission facilities that 
will best serve the national interest. The NOI describes DOE's proposed 
approach to soliciting applications for TFP facilitation, identifying 
information that applicants would provide in an application, and 
describing the criteria that will be used to evaluate applications. The 
RFI includes questions based on DOE's proposed approach, as well as 
other matters relevant to the implementation and administration of the 
TFP.
    The NOI and RFI seek information on TFP implementation. Responses 
to the NOI and RFI should not include applications or requests for 
facilitation of any transmission projects. Applications will be 
accepted after DOE issues an initial solicitation for proposals seeking 
TFP support.

III. Summary of TFP Features

    A. Key Definitions. The TFP was established in the IIJA to 
authorize the Secretary to ``facilitate the construction of electric 
power transmission lines and related facilities,'' \4\ using tools 
delineated in the statute. The IIJA language establishing the TFP 
defined four terms that are central to describing the program, and 
those are reproduced here:
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    \4\ IIJA Sec. 40106(b).
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    <bullet> ``Eligible electric power transmission line'' means an 
electric power transmission line that is capable of transmitting not 
less than (a) 1,000 megawatts (MW); or (b) in the case of a project 
that consists of upgrading an existing transmission line or 
constructing a new transmission line in an existing transmission, 
transportation, or telecommunications infrastructure corridor, 500 MW.
    <bullet> ``Eligible entity'' means an entity seeking to carry out 
an eligible project.
    <bullet> ``Eligible project'' means a project (including any 
related facility) (a) to construct a new or replace an existing 
eligible electric power transmission line; (b) to increase the 
transmission capacity of an existing eligible electric power 
transmission line; or (c) to connect an isolated microgrid to an 
existing transmission, transportation, or telecommunications 
infrastructure corridor located in Alaska, Hawaii, or a territory of 
the United States.
    <bullet> ``Capacity contract'' means a contract entered into by the 
Secretary and an eligible entity for the right to the use of the 
transmission capacity of an eligible project.
    B. Three Tools Available to DOE. Under the TFP, DOE can offer three 
types of support to facilitate construction of eligible projects. These 
tools are:
    1. Capacity Contracts. DOE is authorized to purchase the right to 
use transmission capacity of up to 50 percent of the total proposed 
transmission capacity of the transmission line from an eligible project 
for a term of not more than 40 years.\5\ DOE participation is to help 
provide certainty to developers, operators, and marketers that customer 
revenue will be sufficient to justify the construction of a 
transmission line that meets current and future needs. Applications for 
capacity contracts are not required to account for National 
Environmental Policy Act (NEPA) environmental impact review, because 
DOE's entry into a capacity contract does not independently trigger 
NEPA review.\6\ DOE may terminate the capacity contract as soon as 
practicable after determining that there is sufficient subscription to 
the new project to ensure the project's long-term financial 
viability.\7\ DOE may transfer contractual rights to transmission 
capacity to a third party upon payment by the third party.\8\ DOE may 
also relinquish contractual rights back to the developer of the 
project, upon payment to DOE for those rights by the developer \9\ If 
DOE has not terminated or transferred the capacity before the eligible 
project enters service, DOE is required to market the transmission 
capacity of the project to which it holds rights under a capacity 
contract. DOE is also required to seek to ensure that any power 
marketing contract maximizes the financial return to the Federal 
Government.
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    \5\ IIJA Section 40106(f)(3).
    \6\ IIJA Section 40106(f)(7).
    \7\ IIJA Section 40106(f)(5).
    \8\ IIJA Section 40106(f)(5)(B).
    \9\ IIJA Section 40106(f)(5)(C)-(D).
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    2. Loans. DOE is authorized to make loans to eligible entities for 
the costs of carrying out an eligible project.\10\ The interest rate on 
a TFP loan shall be fixed by DOE, taking into consideration market 
yields on outstanding marketable obligations of the United States of 
comparable maturities as of the date of the loan.\11\ To the extent 
consistent with the underlying purposes and scope of the TFP, DOE 
anticipates that the TFP loan process will be similar to the process 
for evaluating DOE loans and loan guarantees offered by the Loan 
Programs Office (LPO) or federal Power Marketing Administrations. For 
example, loans issued by LPO are subject to a thorough and formal due 
diligence process before DOE offers conditional commitment to 
borrowers. Applicants should expect a similar process before a final 
loan commitment

[[Page 29144]]

will be made by DOE for any request for TFP facilitation.
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    \10\ IIJA Section 40106(e)(1)(B).
    \11\ IIJA Section 40106(g).
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    3. Public-Private Partnerships. DOE is authorized to undertake 
public-private partnerships under which DOE will participate with an 
eligible entity in designing, developing, constructing, operating, 
maintaining, or owning an eligible project. Among other requirements, a 
public-private partnership eligible project may be located in an area 
designated as a national interest electric transmission corridor 
pursuant to section 216(a) of the Federal Power Act, 16 U.S.C. 824p(a) 
(NIETC), or the eligible project must be necessary to accommodate an 
actual or projected increase in demand for electric transmission 
capacity across more than one State or transmission planning 
region.\12\ DOE anticipates that TFP public-private partnerships will 
be similar in structure and process to, and may confer similar benefits 
to, transmission projects undertaken pursuant to Section 1222 of the 
Energy Policy Act of 2005 (42 U.S.C. 16421), except that DOE has 
funding available under the TFP to invest in an eligible project.
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    \12\ IIJA Section 40106(h).
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IV. Proposed Approach

    The IIJA directs the Secretary to establish procedures for the 
solicitation and review of applications from eligible entities. DOE 
proposes the following solicitation process and key application 
requirements and application evaluation considerations.

A. Proposed TFP Solicitation Process

    The DOE proposes to conduct an initial solicitation for eligible 
projects seeking capacity contracts, as detailed herein. In subsequent 
solicitations, DOE will conduct additional solicitations applicable to 
some or all of the three facilitation mechanisms available under the 
TFP (capacity contract, loan, public-private partnership). At present, 
DOE plans to conduct a TFP solicitation at least annually, assuming 
funds are available. The annual solicitation process may be focused on 
one or all of the TFP mechanisms, depending on market needs and 
available funding.
    1. Initial Solicitation: The first solicitation will be limited to 
applicants seeking capacity contracts for eligible projects that will 
commence commercial operation no later than December 31, 2027, if DOE 
authorizes a capacity contract. The timing of DOE's determination on a 
request for support will be based on the time necessary to conduct due 
diligence on the proposed project, to negotiate with the sponsor, to 
consult with affected stakeholders, including regional transmission 
planning regions, and to finalize the definitive legal documents that 
will govern each transaction. If an applicant is found to be eligible 
and its project meets the selection criteria, but it is not selected in 
the first round of TFP capacity contracts, the applicant is welcome to 
submit another application when DOE issues subsequent solicitations.
    DOE expects its first solicitation will be issued in 2022 and a 
second solicitation will be issued in early 2023. In the second 
solicitation, DOE currently anticipates it will invite applications for 
all the forms of support available from the TFP: Capacity contracts, 
loans, public-private partnerships, as well as support for connecting 
microgrids in Alaska, Hawaii, or a U.S. Territory. As with the initial 
solicitation, the timing of DOE's determination on a request for 
support in subsequent solicitations will include the time necessary to 
conduct due diligence on the proposed project and to finalize 
definitive legal documents governing the transaction. Following the 
second solicitation, the types and amounts of TFP support offered in 
2024 and beyond will be identified in the solicitation documentation.
    In the following sections, DOE states its expectations for the 
first solicitation, that is, the solicitation for eligible projects 
seeking capacity contracts for eligible projects that could be in 
commercial operation by December 31, 2027.
    2. Solicitation Announcement. Following review and consideration of 
comments received in response to the RFI issued herewith, DOE proposes 
to issue a solicitation announcement seeking applications for eligible 
projects. The solicitation announcement will include detailed 
requirements for applications, and an application form to be submitted 
to DOE. Applicants should expect the information requested to include 
the items identified in this NOI. The solicitation announcement may 
identify paths or regions that DOE prefers for the location of eligible 
projects that promote the goals of the TFP, including to promote grid 
flexibility, increase reliability and resilience, and connect 
communities to greater opportunity for lower-cost, lower-carbon 
electric generation resources.
    3. Timeline. The solicitation announcement will include a deadline 
for applications and will provide a timeline for DOE's selection 
process. The solicitation will include guidance regarding DOE's 
expectations for its review of applications, for selection of projects 
for negotiation of capacity contracts, for the due diligence process, 
and for the execution of capacity contracts.

B. TFP Eligibility Determination

    The IIJA includes specific, objective eligibility requirements for 
participation in the TFP. If DOE determines that an application fails 
to demonstrate the proposed project is eligible for TFP support, DOE 
may provide a written notice of that decision to the applicant. If a 
proposed project is determined by DOE to be ineligible, the application 
supporting it will not be considered further by DOE (unless 
supplemented with information demonstrating, to DOE's satisfaction, 
that the project meets the eligibility criteria).
    To demonstrate eligibility, the entity seeking to carry out the 
project must certify at least one of the following regarding the 
proposed project:
    <bullet> If the project proposes construction of a new transmission 
line that is not in an existing transmission, transportation, or 
telecommunications corridor, the new transmission line will be capable 
of transmitting not less than 1,000 megawatts.
    <bullet> If the project proposes upgrading an existing transmission 
line or constructing a new transmission line in an existing 
transmission, transportation, or telecommunications corridor, the 
transmission line will be capable of transmitting not less than 500 
megawatts.
    <bullet> If replacing an existing line, the existing line being 
replaced will be one that would be eligible for TFP (transmits not less 
than 1,000 megawatts if not in an existing corridor, or not less than 
500 megawatts if in an existing corridor).
    <bullet> The proposed project will increase the transmission 
capacity of an existing line that would be eligible for TFP (the 
existing line must transmit no less than 500 megawatts).
    <bullet> Rather than, or in addition to, demonstrating compliance 
with the factors identified above, the project will connect an isolated 
microgrid to an existing transmission, transportation, or 
telecommunications infrastructure corridor located in Alaska, Hawaii, 
or a territory of the United States.
    The applicant must also certify that the proposed transmission line 
project does not include related facilities used primarily to generate 
electric energy or used in the local distribution of electric energy.
    If DOE determines that information submitted in the application 
establishes that the proposed project is an eligible project, then the 
application will be

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reviewed to determine if it meets the standards necessary for the 
Secretary to certify that the proposed project may receive TFP 
facilitation.

C. Selection and Execution

    As a condition to facilitation of an eligible project using any of 
the tools available in the TFP, DOE must certify that: (a) The eligible 
project is in the public interest; (b) the eligible project is unlikely 
to be constructed in a timely manner or with as much transmission 
capacity in the absence of facilitation provided from the TFP; and (c) 
there is a reasonable expectation that the proceeds from the eligible 
project will be adequate to recover the cost of DOE's facilitation 
activities for the eligible project. In evaluating projects for 
possible solicitation, DOE will prioritize projects that advance the 
TFP's statutory objectives.\13\ DOE proposes to make such 
determinations based on the application materials submitted for a 
project, consultation with DOE and outside experts and stakeholders, 
and any financial or technical due diligence needed by DOE. Applicants 
must provide information on the following issues to support DOE's 
certification of their project for TFP facilitation.
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    \13\ See Section 40106(j)(8).
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    1. The applicant must demonstrate that the eligible project is 
unlikely to be constructed in as timely a manner or with as much 
transmission capacity in the absence of TFP facilitation.
    To assess whether an eligible project is unlikely to be constructed 
in as timely a manner or with as much transmission capacity in the 
absence of TFP facilitation, DOE will request applicants provide 
information including:
    <bullet> A status report on the proposed project, and the nature of 
the challenges the project sponsor currently faces that prevent or 
hinder construction of the project.
    <bullet> An explanation of why the proposed project is unlikely to 
be built, or unlikely to be built with as much transmission capacity, 
absent the TFP support.
    <bullet> A description of how the applicant believes TFP support 
would mitigate or eliminate the barriers to successful construction of 
the proposed project.
    2. The applicant must demonstrate that its proposed project has a 
realistic chance of being constructed and going into commercial 
operation if DOE approves TFP assistance.
    An applicant must demonstrate that its proposed project has a 
realistic chance of being constructed and going into commercial 
operation if DOE approves TFP assistance. DOE expects that projects 
further along in the development process will be more effectively 
assisted by the tools available under the TFP.
    The information DOE expects to request will address the regulatory, 
financial, commercial, and affected community issues that are key to 
the success of large transmission projects. Applicants must provide a 
thorough explanation of their project, detailed information regarding 
necessary regulatory approvals, financial data, and modeling sufficient 
to enable DOE to assess the prospects of cost recovery or repayment to 
DOE of TFP support from the proceeds of the project.
    DOE proposes to seek the following information to determine the 
readiness of the proposed project, including but not limited to:
    <bullet> A detailed description of the proposed project, including 
the transmission facilities and related facilities, the proposed route, 
the equipment that will be used to construct the line, its anticipated 
capacity and line ratings, points of interconnection, unidirectional or 
bidirectional capabilities, cybersecurity plan, and the proposed 
schedule for completing construction and interconnection of the 
project.
    <bullet> The status of the Federal, Tribal, State, and local 
permits, approvals, and other legal authority necessary to construct, 
own, and operate the transmission line as proposed and the project 
sponsor's schedule for obtaining all necessary permits and approvals.
    <bullet> Identification of the rights-of-way, easements, or other 
land use arrangements necessary for construction of the proposed 
project that the project sponsor has in place, and what land use 
arrangements remain to be completed to successfully undertake 
construction and operation of the proposed project. Applicants should 
detail the community and stakeholder outreach they have undertaken, and 
plan to undertake in the future, to inform those along the route of the 
proposed project of its potential impacts on their communities. The 
description of community and stakeholder engagement should include 
concerns raises, issues resolved in writing, and issues outstanding.
    <bullet> A schedule showing the length of time the project will 
take from the date of its application, and from its notice to proceed 
with construction, to commercial operation of the line. The timeline 
should include key milestones and required permits or regulatory 
approvals that could accelerate or delay completion of the proposed 
project.
    <bullet> Evidence demonstrating that the proposed project is 
consistent with regional transmission plans and priorities.
    <bullet> An estimate of the time required to complete grid 
interconnection(s) necessary to successfully operate the proposed 
project, including the length of time the project expects to be in any 
interconnection queues.
    <bullet> The scope of the generation resources available or 
expected to be available and their competitive status relative to other 
resources able to meet the same goals and needs.
    <bullet> The number and estimated financial value of firm 
commitments from transmission customers for the electric power to be 
transmitted by the proposed project. The applicant should detail the 
steps it has taken and plans to take to market the unsold transmission 
capacity on the proposed project.
    <bullet> Detailed information about: (a) The project sponsor's 
experience in planning and completing transmission projects; and (b) 
the management team that will be responsible for construction and 
operation of the line.
    <bullet> The identification of the equity investors in the project 
and the amounts invested to date, and the amount of, or prospects for, 
debt instruments to finance construction of the project. This 
information should include evidence of the financial strength of the 
equity and debt participants in the project.
    <bullet> The identification of companies or other entities that the 
project sponsor expects to: (a) Own, operate, and maintain the 
project's transmission lines and related facilities once commercial 
operations are underway; and (b) be engaged to market the power to be 
transmitted by the line.
    <bullet> The status of the vendor contracts necessary to complete 
the construction of the project. This information should include 
planned or executed contracts for Engineering, Procurement, and 
Construction (EPC) services and project management.
    <bullet> A description of engagement with the relevant construction 
trade unions and the status of negotiations on Project Labor Agreements 
\14\ that address skill certifications, use of registered apprentices, 
dispute resolution, project stabilization, and other conditions.
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    \14\ ``Project labor agreement'' means a pre-hire collective 
bargaining agreement with one or more labor organizations that 
establishes the terms and conditions of employment for a specific 
construction project and is an agreement described in 29 U.S.C. 
158(f).
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    <bullet> A certification that the planning, construction, and 
operation of the line will comply with federal ``Made In

[[Page 29146]]

America'' laws,\15\ including the Build America, Buy America Act.\16\
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    \15\ ``Made in America Laws'' means all statutes, regulations, 
rules, and Executive Orders relating to Federal financial assistance 
awards or Federal procurement, including those that refer to ``Buy 
America'' or ``Buy American,'' that require, or provide a preference 
for, the purchase or acquisition of goods, products, or materials 
produced in the United States, including iron, steel, and 
manufactured products offered in the United States. Made in America 
Laws include laws requiring domestic preference for maritime 
transport, including the Merchant Marine Act of 1920 (Pub. L. 66-
261), also known as the Jones Act. Exec. Order No. 14,005, 86 FR 
7475, Sec.  2(b) (Jan. 28, 2021), available at https://www.federalregister.gov/documents/2021/01/28/2021-02038/ensuring-the-future-is-made-in-all-of-america-by-all-of-americas-workers. 
Made in America Laws also include laws that give preference to 
Indian-owned and -controlled businesses, such as the Buy Indian Act 
(25 U.S.C. 47), that produce items in the United States.
    \16\ Public Law 117-58, Sec.  70901-52.
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    3. The applicant must demonstrate that there is a reasonable 
expectation that the proceeds from the eligible project will be 
adequate to recover the cost of DOE's facilitation activities for the 
eligible project.
    DOE intends to execute the TFP in a manner that optimizes the use 
of available funds, and that provides a reasonable expectation that the 
proceeds from the eligible project will be adequate for DOE to recover 
the cost of support it provides to the eligible project at the earliest 
reasonable date. Accordingly, applicants should provide information 
including:
    <bullet> Evidence that the proposed project is not duplicative of 
the functions of existing transmission lines.
    <bullet> An estimate of the length of time after commencement of 
commercial operation that the sponsor expects DOE would need to 
maintain its position under a capacity contract.
    <bullet> Data showing the expected demand for transmission capacity 
provided by the project, the need for the electricity expected to be 
transmitted by the project, the competitiveness of the energy supplied 
by the project, and the savings to the affected customers while DOE 
holds an interest.
    When it provides such information, the applicant should also 
identify the risks and uncertainties its estimates are subject to, as 
well as other factors that would affect the value of DOE's interest in 
the capacity contract.
    4. The applicant must explain how the eligible project advances the 
priorities established for TFP facilitation in the IIJA.
    The IIJA directs that, in evaluating projects for TFP facilitation, 
DOE shall prioritize projects that will achieve specific 
objectives.\17\ Applicants should provide information demonstrating how 
an eligible project would:
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    \17\ IIJA Section 40106(j)(8).
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    <bullet> Use technologies that enhance the capacity, efficiency, 
resiliency, or reliability of an electric power transmission system, 
including (a) reconductoring of an existing electric power transmission 
line with advanced conductors; and (b) hardware or software that 
enables dynamic line ratings, advanced power flow control, or grid 
topology optimization; and (c) additional grid-enhancing technologies 
the applicant anticipates including in the proposed project.
    <bullet> Improve the resiliency and reliability of an electric 
power transmission system.
    <bullet> Facilitate interregional transfer capacity that supports 
strong and equitable economic growth.
    <bullet> Contribute to national or subnational goals to lower 
electricity sector greenhouse gas emissions, including the national 
goal to achieve 100% clean electricity by 2035.

D. Possible Types of Contracts

    In the first solicitation, DOE will identify capacity contract 
transaction structure(s) for which it is soliciting applications. DOE 
expects that it will negotiate individual transactions with each 
eligible project selected for TFP support, but that the transactions 
will be based on a consistent set of contract forms. The contracts will 
include terms applicable to and appropriate for each of the selected 
eligible projects and eligible entities.
    In the general form, DOE expects capacity contract agreements may 
include elements of the following types of contracts commonly used for 
transmission services to secure capacity for the eligible project, 
permit DOE to market its capacity, and ultimately to exit from the 
eligible project.
    <bullet> Precedent Transmission Service Agreement. An agreement DOE 
enters into with the transmission owner, that describes the events and 
circumstances that must occur before a Transmission Service Agreement 
takes effect. A precedent agreement would identify the terms under 
which DOE will enter into the Transmission Service Agreement to take 
long-term firm transmission service. This agreement would be in effect 
before transmission service is available from the eligible project, and 
would include terms such as:

--A project that receives TFP facilitation, once commercially 
operational, will operate its facilities used for transmitting electric 
energy in interstate commerce under an open access, non-discriminatory 
transmission tariff.
--Termination provisions with and without fee options for either party 
should be considered as appropriate. In addition, remedies should be 
provided if specified conditions precedent are not met. For example, if 
project construction is not begun or completed by a date certain, the 
contract would establish the terms on which a party may terminate its 
commitment; and
--Provisions governing the sale of capacity to third parties prior to 
commercial operation. For example, a ``most favored nation'' provision 
could be included to ensure that DOE receives terms of service at least 
as favorable as any subsequent capacity customer. The agreement could 
also include a requirement that the eligible entity developing the 
eligible project include capacity contracted with DOE in a pro rata 
proportion when it sells uncommitted capacity to third parties. Another 
alternative might be to allow DOE to reduce its commitment as third 
parties contract for uncommitted capacity above a certain level.

    <bullet> Transmission Service Agreement. DOE would enter into this 
agreement with the transmission owner to provide DOE with firm point-
to-point transmission service along the contracted paths for the term 
of the agreement. The agreement would include:

--Price, volume, tenor of capacity commitment (DOE capacity contracts 
may be for up to 50% of the total transmission capacity of the eligible 
project, with a tenor of up to forty (40) years); \18\
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    \18\ Section 40106(f)(3).
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--Incorporation of the transmission provider's open access transmission 
tariff; and
--Right of DOE to market its contract capacity, both short-term and on 
a permanent basis, and may include a most favored nation right as 
described previously.

    <bullet> Transmission Capacity Resale Agreement. This agreement 
would provide a contractual mechanism for resale on a short-term basis 
of capacity rights that DOE may agree from time to time to make 
available. The agreement is entered into between DOE and third parties 
who seek transmission capacity for less than the full term or full 
volume of the capacity contract. The agreement would include:

--Terms addressing creditworthiness of the parties;
--Billing and payment terms and conditions; and

[[Page 29147]]

--Terms identifying DOE's continued responsibility with respect to the 
capacity contract.

    <bullet> Transmission Capacity Transfer or Relinquishment 
Agreement. This Agreement would reflect DOE's right to permanently 
transfer to a third party, or relinquish to the project developer, 
DOE's contractual rights to transmission capacity. This agreement would 
enable DOE to sell its transmission rights and terminate the TFP 
capacity contract, as contemplated by the IIJA.\19\ Terms of this 
agreement would include:
---------------------------------------------------------------------------

    \19\ See Section 40106(f)(5).

--Terms addressing creditworthiness of the party to whom DOE transfers 
or relinquishes its contractual capacity rights; and
--The process by which DOE effectuates its exit from the project.

    <bullet> Transmission Remarketing Agency Agreement. This would be 
the agreement between DOE and a remarketing agent, to remarket the 
transmission capacity and ultimately to find a party to novate DOE's 
capacity contract. This agreement would enable an agent to post DOE's 
transmission capacity for sale on a transmission owner's Open Access 
Same-Time Information System (OASIS). The agent would be required to 
meet contractual standards defined by DOE for its performance as DOE's 
remarketing agent.
    These examples are identified to explain the types of agreements 
DOE expects to be involved in a TFP capacity contract transaction. They 
do not constitute an exhaustive list of legal agreements necessary to 
complete a TFP transaction.

V. Questions for Requests for Information

    DOE seeks comment regarding all elements of the proposed approach 
to the TFP described in the previous sections. In addition, DOE seeks 
comment on the following specific questions.

A. General

    (1) Please comment on the TFP solicitation process proposed in this 
NOI. What are the potential positive and negative impacts of limiting 
the initial solicitation to capacity contracts for projects that can be 
completed by December 31, 2027? Rather than conducting separate 
solicitation processes, should DOE request applications under a single 
solicitation that remains open for a rolling review and determination 
process? What are the merits and demerits of using one approach or 
another to achieve TFP's objectives?
    (2) When considering the merits of TFP applications, how should DOE 
consider the impact a proposed project has on reliability and 
resilience, reducing greenhouse gas emissions, generating host 
community benefits, encouraging strong labor standards the growth of 
union jobs and expanding career-track workforce development in various 
regions of the country, improving energy equity and achieving 
environmental justice goals, maximizing the use of products and 
materials made in the United States, and maintaining or improving 
energy security? How should DOE evaluate eligible projects that include 
benefits that may vary across the set of preferred impacts? To what 
extent should DOE consider additionality of outcome on these 
dimensions? What information should DOE seek from applicants to inform 
such considerations? What metrics and methods are available for 
conducting such evaluations?
    (3) To what extent should maximizing the benefit from federal 
expenditures be a factor considered when comparing eligible projects? 
How should the ``benefit'' be interpreted and measured, either in 
financial terms, in terms of system benefits, or in terms of policy 
outcomes as outlined in Question 2? Please provide recommendations for 
a methodology for making such comparisons of benefit.
    (4) What are the best tools for ensuring availability of a skilled 
workforce to support timely, efficient implementation, project 
continuity, and success? Specifically, how should DOE encourage the use 
of Project Labor Agreements that specify required certifications, 
dispute resolution, and utilization of registered apprentices?
    (5) Are there methods and approaches to implementing TFP that 
amplify and leverage the funding available through TFP, and accelerate 
the greatest quantity of new transmission development that will best 
serve the national interest, including by cost-effectively increasing 
resilience and reducing greenhouse gas emissions, while promoting 
economic growth and energy justice?
    (6) Are there other policy parameters not listed previously that 
should inform the determination of which proposals most cost-
effectively achieve the objectives of the TFP? What criteria would 
indicate achievement of such parameters? What metrics and methods are 
available for evaluating a proposed project's potential to achieve the 
criteria?
    (7) Are there types of eligible projects, however defined, where 
the TFP is an especially suitable and useful method of providing 
financial support, relative to other forms of financial support, from 
DOE or other programs?
    (8) What criteria should DOE consider for determining that ``the 
eligible project is unlikely to be constructed in as timely a manner or 
with as much transmission capacity in the absence of facilitation'' 
provided by the TFP?
    (9) Should DOE establish a standard format and methodology for each 
applicant to present economic data, projections, analysis, and other 
information in support of an application for TFP support? If so, please 
address the components that should be included as part of a standard 
format and methodology and what information should be required. Or 
alternatively, please identify methods or processes that are employed 
in other federal or non-federal programs, such as the DOE Loan 
Guarantee Program, that could be adopted by the TFP as standard methods 
for assessing applications.
    (10) The IIJA calls upon DOE to consult with, and consider the 
views of, specific organizations in its considerations of capacity 
contracts. Before DOE can enter into a capacity contract, the statute 
requires DOE to consult with the relevant transmission planning region 
regarding the region's identification of needs, and DOE is instructed 
to avoid duplication or conflict with a region's needs determination 
when selecting projects.\14\ What information should DOE seek from an 
applicant, transmission owner or operator, or from a regional 
transmission organization or regional reliability organization to 
satisfy the consultation requirement in the statute? What are the 
appropriate points in the process when such consultation should occur?
    (11) Please identify any regulatory or business barriers that might 
impede the implementation of the TFP. Please propose solutions to 
eliminate or mitigate any identified barriers.
    (12) Recognizing that transmission projects are located based on 
the availability of generation, and ultimately customers to buy that 
generation, and have limited long term direct employment impacts:
    <bullet> What equity, energy and environmental justice concerns or 
priorities are most relevant for the TFP? How can these concerns or 
priorities be addressed in TFP implementation?
    <bullet> How might the TFP encourage greater employment, equity, 
environmental justice, and economic growth? What mechanisms are 
available to DOE and eligible transmission

[[Page 29148]]

projects encourage these outcomes? How should the results be measured?
    <bullet> What regional and local factors should be considered when 
evaluating TFP applications (e.g., economic considerations, policy 
considerations, labor-management partnerships, environmental and energy 
justice considerations, geology, workforce availability and skills, 
current industrial and other relevant infrastructure and storage 
available/repurposed/reused, industry partners, minority-serving 
institutions (MSIs), minority-owned businesses, regional specific 
resources, security of supply, climate risk, etc.)?
    (13) If DOE asks for a market analysis as part of the application 
process, what should the analysis include so that DOE can be confident 
that a proposed project will be successful? What qualifications should 
be required of the parties preparing such analyses?
    (14) What can DOE provide that would be helpful to an eligible 
project to facilitate its collaborations with potential financing 
partners?
    (15) What data should DOE collect from TFP recipients to evaluate 
the impact of the program? How should this data and the program 
outcomes be disseminated to the public?
    (16) Please provide any other input DOE should consider in the 
establishment and implementation of the TFP, including any other 
information and criteria that might be useful in DOE's approach for and 
implementation of the certification, due diligence review, and 
selection process.

B. Microgrid Projects

    (17) The ``eligible project'' definition for the TFP includes a 
project ``to connect an isolated microgrid to an existing transmission, 
transportation, or telecommunications infrastructure corridor located 
in Alaska, Hawaii, of a territory of the United States.'' Which of the 
forms of TFP support (capacity contracts, loans, or public-private 
partnerships) are expected to be most useful to the projects to connect 
microgrids to existing infrastructure corridors as contemplated in the 
IIJA? What criteria should be used to evaluate qualification of 
microgrids for support under the TFP?

C. Capacity Contracts

    (18) Is it advisable for DOE to limit its first solicitation to 
applications seeking capacity contracts for projects that are able to 
commence commercial operation by December 31, 2027, and defer 
applications to a subsequent solicitation for projects supported by 
capacity contracts but with a later forecasted commercial operation 
date, or for projects seeking TFP loans or public-private partnerships?
    (19) The IIJA calls on DOE to seek to enter into capacity contracts 
that will encourage other entities to enter into contracts for the 
transmission capacity of the eligible projects. On what basis should 
DOE assess whether a capacity contract with an applicant will encourage 
other entities to enter contracts for transmission capacity?
    (20) Should DOE use any standards, or collect information from 
applicants, different from what is described in this NOI for selecting 
among applicants for capacity contracts? If so, please suggest 
alternative standards or information requirements.
    (21) The FERC Pro Forma Open Access Tariff \20\ allows transmission 
customer rollover rights with a minimum contract term of five years. If 
the DOE capacity contract with an eligible entity had a term of five 
years, would that be sufficient to successfully facilitate construction 
of an eligible project? If not, what is the minimum contract term 
length required, with or without rollover rights, needed to 
successfully facilitate construction of an eligible project?
---------------------------------------------------------------------------

    \20\ Pro Forma Open Access Transmission Tariff (OATT), available 
at Pro Forma OATT--effective March 14, 2022, [bond] Federal Energy 
Regulatory Commission (ferc.gov).
---------------------------------------------------------------------------

    (22) What conditions precedent would be sufficient for DOE to 
terminate its contract prior to commercial operation of an eligible 
project?
    (23) Should capacity contracts include provisions that authorize 
DOE to terminate the contract for convenience subject to a termination 
fee? What, if any, impact would such a termination provision (and 
associated fee) have on an eligible project's financing, rate design, 
or a rate review and approval required from FERC?
    (24) Should DOE enter into contingent offers with multiple eligible 
entities, and award final capacity contracts to the projects that 
achieve significant milestones first? If so, what should be the 
significant milestones be? What, if any, impact would such an approach 
have on an eligible project's financing, rate design, or a rate review 
and approval required from FERC?
    (25) Is it advisable for DOE, when selecting eligible projects for 
capacity contracts, to prioritize projects that have a certain 
percentage of capacity already subscribed? If so, what should that 
percentage be? What level of commitment (firm supply versus other types 
of capacity subscription) should DOE require eligible entities to 
demonstrate to be selected for a capacity contract? How should 
applicants be required to document such commitments? Should DOE's 
capacity be capped as a ratio of the firm subscription obtained before 
the execution of a capacity contract? If so, what should that ratio be?
    (26) Should DOE require counter-parties to capacity contracts to 
offer DOE's capacity to other customers on a pro rata share before 
being able to sell the remaining capacity on an eligible project to 
other customers?
    (27) DOE seeks to exit its capacity contract as soon as practicable 
after determining that sufficient transmission capacity has been 
secured by other entities to ensure the long-term financial viability 
of an eligible project. What other contract mechanisms are available to 
limit DOE's commitment so it may exit, and free up funds obligated to 
support future projects?
    (28) Should DOE receive a more favorable rate for its capacity 
commitment than other subscribers, to reflect its first mover position?
    (29) Please comment on the forms of contractual arrangements 
discussed previously, and whether the types of contracts mentioned are 
appropriate vehicles for achieving the statutory requirements and goals 
of the TFP. If not, please suggest other contractual arrangements or 
structures that would more effectively meet the IIJA's requirements and 
goals. DOE welcomes inclusion of examples of proposed contract terms as 
part of a response to this RFI.

VII. Response Guidelines

    NOI/RFI responses shall include:
    <bullet> NOI/RFI title and reference number;
    <bullet> Name(s), phone number(s), and email address(es) for the 
principal point(s) of contact;
    <bullet> Institution or organization affiliation and postal 
address; and
    <bullet> Clear indication of the specific question(s) to which you 
are responding.
    Responses including business proprietary information will be 
handled per guidance in Section VIII.
    NOI/RFI responses should be submitted electronically to 
www.regulations.gov.

VIII. Business Proprietary Information

    Pursuant to 10 CFR 1004.11, any person submitting information that 
he or she believes to be business proprietary and exempt by law from 
public disclosure should submit via email two well-marked copies: One 
copy of the document marked ``Business Proprietary'' including all the 
information believed to be proprietary,

[[Page 29149]]

and one copy of the document marked ``non-Proprietary'' deleting all 
information believed to be business proprietary. DOE will make its own 
determination about the business proprietary status of the information 
and treat it according to its determination. Factors of interest to DOE 
when evaluating requests to treat submitted information as business 
proprietary include: (1) A description of the items; (2) whether and 
why such items are customarily treated as business proprietary within 
the industry; (3) whether the information is generally known by or 
available from other sources; (4) whether the information has 
previously been made available to others without obligation concerning 
its business proprietary nature; (5) an explanation of the competitive 
injury to the submitting person which would result from public 
disclosure; (6) when such information might lose its business 
proprietary character due to the passage of time; and (7) why 
disclosure of the information would be contrary to the public interest.

Signing Authority

    This document of the Department of Energy was signed on May 6, 
2022, by Patricia A. Hoffman, Acting Director of the Grid Deployment 
Office, pursuant to delegated authority from the Secretary of Energy. 
That document with the original signature and date is maintained by 
DOE. For administrative purposes only, and in compliance with 
requirements of the Office of the Federal Register, the undersigned DOE 
Federal Register Liaison Officer has been authorized to sign and submit 
the document in electronic format for publication, as an official 
document of the Department of Energy. The administrative process in no 
way alters the legal effect of this document upon publication in the 
Federal Register.

    Signed in Washington, DC, on May 6, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-10137 Filed 5-11-22; 8:45 am]
BILLING CODE 6450-01-P


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