Energizing Our Communities Act
The Energizing Our Communities Act would create a new Community Economic Development Transmission Fund in the Treasury to compensate host communities—local governments and Indian Tribes—for hosting large electric transmission projects. The fund is financed by a portion of interest earned on certain DOE/Infrastructure Investment and Jobs Act loan programs related to high-capacity transmission lines (generally 999 megawatts or more). The Secretary of Energy would administer the fund and make payments to host communities, with rules on timing, amounts, and eligible uses. Funds may be used for a wide set of community needs (up to 80% for infrastructure, services, workforce training, broadband, etc.) and at least 20% must go toward conservation, stewardship, and recreation. The bill also requires reporting on the fund and loan programs and preserves host communities’ rights to pursue community benefit agreements with project owners.
Key Points
- 1Establishment and financing of the Community Economic Development Transmission Fund, administered by the Secretary of Energy, funded by a portion of interest from covered loans tied to transmission projects.
- 2Definitions of covered loans and eligible projects, including loans under IIJA section 40106(e)(1)(B), Western Area Power Administration transmission projects, and other DOE loan programs for very high-capacity lines (capable of 999 MW or more).
- 3Eligible uses of funds: up to 80% for community-supportive activities (infrastructure, public services, broadband access, workforce training in renewable energy, parks, etc.) and at least 20% for conservation, stewardship, and recreation (habitat protection, public land access, outdoor recreation facilities, climate solutions, traditional ecological knowledge, etc.).
- 4Payment mechanics: payments to host communities are made within 18 months after construction begins, restricted to one payment per eligible project per host community, with eligibility contingent on timely request and use for eligible purposes; includes a formula designed to maintain long-term fund solvency and consider input from communities.
- 5Reporting and oversight: an initial report within 90 days on DOE loan programs funding large transmission lines, plus annual reports detailing deposits, fund balance, host communities receiving funds, associated projects, and amounts paid.