Energizing Our Communities Act
The Energizing Our Communities Act creates a new Community Economic Development Transmission Fund in the Treasury to provide payments to host communities that host large electric transmission lines. The funding comes from a portion of interest on certain Department of Energy loans (the “covered loans”) that finance transmission projects capable of transmitting 999 megawatts (MW) or more. The bill directs funds to host communities (local governments and Indian Tribes) to be used for a mix of community development, infrastructure, and conservation/recreation activities, with specific emphasis on broadband, schools, healthcare, workforce training in renewable energy, and outdoor recreation. A minimum of 20% of funds must be used for conservation, stewardship, or recreation. Payments are limited to one lump-sum payment per eligible project per host community and are intended to occur within 18 months after construction begins. The bill also requires reporting to Congress and provides a savings clause allowing host communities to pursue community benefit agreements with project owners.
Key Points
- 1Establishment of the Community Economic Development Transmission Fund to pay host communities hosting transmission projects, managed by the Secretary of Energy in coordination with the Treasury.
- 2Definition of “covered loans” and “eligible projects,” including loans under the Infrastructure Investment and Jobs Act, Western Area Power Administration programs, and other DOE loan programs for very large transmission lines (999 MW or more).
- 3Eligible uses of funds may cover up to 80% for local public services and infrastructure (schools, libraries, hospitals, roads, parks, public safety, broadband access, workforce training in renewable energy, etc.) and 20% or more must be dedicated to conservation, recreation, or related natural-resource projects (habitat restoration, outdoor recreation facilities, park access, climate and natural-solutions programs, etc.).
- 4Payment mechanics: host communities may receive a single payment for each eligible project, within 18 months after construction begins, with a formula designed to preserve the Fund’s long-term solvency and to account for input from communities; payments are in addition to any payments in lieu of taxes.
- 5Notices, eligibility criteria, and ongoing reporting: host communities must apply within 1 year of notice; annual and 90-day reporting provisions to Congress detail deposits, balances, recipients, and project information; the act preserves the ability of host communities to enter community benefit agreements with project owners.