On May 9, 2023, the Department of Energy’s (DOE) Grid Deployment Office (GDO) released a proposed framework for designating National Interest Electric Transmission Corridors (NIETCs) for specific transmission projects.[1] NIETCs are areas where new or upgraded power lines would benefit consumers by easing existing or future constraints that limit the ability to move power to where it is needed. According to the press release, the designation of a NIETC could unlock critical federal investment and regulatory and permitting tools to spur urgent transmission investments. Specifically, transmission projects in a national corridor can use the DOE’s $2.5 billion Transmission Facilitation Program under the Bipartisan Infrastructure Law (BIL) and the $2 billion Transmission Facility Financing Program under the Inflation Reduction Act (IRA). A NIETC designation also allows the Federal Energy Regulatory Commission (FERC) to issue permits for transmission lines in a corridor when state regulators lack the authority to site the line, have not acted on an application to site the line for over a year, or have denied an application.

Under the DOE’s proposal, transmission developers could apply for NIETC designation in areas where the department has identified transmission needs through its National Transmission Needs Study, which it expects to issue late this summer. Beyond transmission developers, the DOE is considering opening the pool of applicants to tribal authorities, states, non-transmission-owning utilities, local governments, and generation developers. The DOE has requested comments on final guidelines, procedures, and evaluation criteria for the designation process. The DOE plans to issue NIETC application guidance in Fall 2023.

[1] https://www.energy.gov/gdo/articles/doe-proposes-national-interest-electric-transmission-corridor-designation-process