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1 1 (August 5, 2022)

handle is hein.crs/goveicd0001 and id is 1 raw text is: \Congressional ____ a'Research Service Electricity Transmission Provisions in the Inflation Reduction Act of 2022 August 5, 2022 On July 27, 2022, Senate Majority Leader Chuck Schumer and Senator Joe Manchin released legislative text for the budget reconciliation legislation, also known as the Inflation Reduction Act of 2022 (IRA). The IRA contains several provisions aimed at incentivizing increased development of electricity transmission infrastructure in the United States. Many stakeholders view an enhanced U.S. transmission system as key to enabling increased use of wind and solar energy for electricity generation and improving resilience to extreme weather events such as Winter Storm Uri. This analysis summarizes the three transmission provisions in Part 5 of Subtitle A of Title V of the bill. In total, this part would appropriate almost $2.9 billion for transmission provisions. Other provisions in the IRA, such as those related to loan programs administered by the U.S. Department of Agriculture, could potentially incentivize transmission development, but this analysis does not include them. Section 50151 (Transmission Facility Financing) would appropriate $2 billion to remain available until September 30, 2030, for a direct loan program for certain transmission project development. To be eligible for a direct loan, a transmission project would need to be located in a National Interest Electric Transmission Corridor (NIETC). The U.S. Department of Energy (DOE) may designate an area as an NIETC if it meets certain criteria, such as promoting energy security or enabling the use of intermittent energy sources such as wind and solar. No NIETCs currently exist. Absent an NIETC designation, the appropriations this section would provide may not be accessible to industry participants. The Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58) amended the NIETC designation process, but it remains unclear to what extent DOE will use its authority to designate NIETCs. Section 50152 (Grants to Facilitate the Siting of Interstate Electricity Transmission Lines) would appropriate $760 million to remain available through September 30, 2029, for making grants aimed at facilitating the siting of certain onshore and offshore transmission lines. In general, state and local governments have authority for siting electricity transmission infrastructure in the United States. This section would allow relevant siting authorities to receive grants to be used for purposes including transmission project studies, examination of alternative siting corridors, hosting negotiations with project backers and opponents, participating in federal and state regulatory proceedings, and promoting economic development in affected communities. Grants under this section would be contingent on the siting authority agreeing to make a final decision (approval or denial) on the transmission project within two years. The bill does not specify consequences should the siting authority fail to make a final decision. Congressional Research Service https://crsreports.congress.gov IN11981 CRS INSIGHT Prepared for Members and Committees of Congress

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