On February 8, 2023, the Grid Deployment Office released draft application guidance for the Maintaining & Enhancing Hydroelectricity Incentives Program (EPAct 2005 Section 247) for public comment to inform the implementation. The Federal Register Notice provides important information related to the draft application guidance and request for comment, including a request for feedback on five specific questions and details on three response options. The draft application guidance describes the application process and the required information.
Hydroelectric Incentive 247 Draft Guidance Response Webinar
Specific Areas of DOE Interest for Comment
While DOE welcomed comments on all aspects of the draft application guidance, the Department expressed particular interest in receiving comments on the following five proposed approaches:
- DOE proposes to use a scoring criteria rubric to prioritize which capital improvement applications are awarded funding in the event the program is oversubscribed (i.e., more eligible applications than available funding). See Section IX of the draft application guidance.
- DOE proposes to distribute funds in an equitable manner in the event the program is oversubscribed. To do so, DOE plans to fund applications in all three of the categories of capital improvements (i.e., improving grid resiliency, improving dam safety, and environmental improvements) by selecting the top scoring application in each category for small projects and remaining eligible projects. See Section XI.
- Recognizing that small hydropower facilities make up 75 percent of the nation’s hydropower fleet, DOE intends to allocate up to 25 percent of the program funding to support capital improvements made at small hydropower projects (nameplate capacity of 10 MW or less that is owned or operated by a small business, Indian tribe, municipality, or electric cooperative.) See Section IV.
- To balance risk while incentivizing hydropower owners and operators to make qualified capital improvements, DOE is proposing to provide a portion of the funding (up to 10 percent) up front and the remainder upon completion of the capital improvement(s). See Section X.
- DOE estimates eight (8) hours of preparation time for the EPAct 2005 Section 247 application.
Public Participation:
DOE offered three response options to the request for comment on Draft Guidance.
Public Informational Webinar: On Thursday, February 16, 2023, at 1:00 pm ET, DOE held an informal Public Informational Webinar to discuss general feedback from interested parties regarding the content of draft application guidance. The webinar was recorded, and a transcript of the proceedings will be made available on DOE’s website the week of February 26, 2023. The webinar recording and presentation slides are available.
Written Response: The response period for written responses to the draft guidance closed on February 28, 2023.
Individual Verbal Response: DOE also offered an opportunity to submit an individual verbal response in lieu of, or in addition to, providing written responses to the draft application guidance. The period to request an individual verbal response closed on February 16, 2023.
The review process is underway. The Department does not intend to publicly announce the identities of entities that submitted comments. The final guidance and solicitation is scheduled for release in the second quarter of 2023.