Transmission Facility Financing Program

What is the Transmission Facility Financing program? 

Authorized by the Inflation Reduction Act, the TFF program is a direct loan program through which DOE can finance the construction or modification of electric transmission facilities designated by the Secretary of Energy to be in the national interest under Section 216(a) of the Federal Power Act.  

When will the TFF program open for formal applications? 

DOE is currently developing the full scope of the TFF program and gathering additional input on program design. DOE anticipates opening the TFF program for formal applications in 2025. 

DOE is also in the process of designating National Interest Electric Transmission Corridors (NIETCs), designation of which is a prerequisite for any transmission projects qualifying for TFF loans. An eligible TFF project must include electric transmission facilities located within a geographic area designated as a NIETC by the Secretary of Energy.   

For any inquiries about the TFF program, contact GDO at [email protected]. 

What kind of feedback is DOE looking for? 

DOE is looking for input from industry stakeholders on the scope of potential TFF projects and associated project financing requirements. Transmission developers, utilities, and other interested parties interested in providing input on the development of DOE’s formal TFF application and evaluation process may contact DOE to provide input and/or request a meeting with the program team at [email protected] by July 31, 2024.   

When can developers apply for the TFF program? 

The TFF application process is anticipated to open in 2025. The TFF program is currently under development and DOE is seeking feedback from industry stakeholders by July 31, 2024. For any inquiries, please do not hesitate to reach out to us at [email protected].  After July 31, 2024, DOE may continue to gather information from transmission industry stakeholders, as needed, to complete development of the formal TFF application and evaluation process.   

Who is eligible to apply for the TFF program? 

To be eligible, an applicant must meet the following minimum criteria: 

• The applicant must be a non-federal borrower; 
• The applicant must be constructing or modifying electric transmission facilities;  
• The applicant’s project must include electric transmission facilities located within a geographic area that the Secretary of Energy had designated as a National Interest Electric Transmission Corridor (NIETC) pursuant to section 216(a)(2) of the Federal power Act; and 
• The construction or modification of the relevant electric transmission facilities must address the transmission capacity constraints or congestion underlying the Secretary of Energy’s designation of the associated NIETC. 

What requirements apply to direct loans under the TFF program? 

Per the authorizing statute, applicants must be seeking loans that: 

• Have a term not exceeding 90% of the projected useful life of the facility or 30 years (whichever is less);  
• Do not exceed 80% of the project costs; and  
• Are not subordinate to other financing. 

Also, all loan disbursements to eligible projects must occur prior to September 30, 2031. Additional requirements will be included in formal application materials. 

How does the TFF program differ from the Transmission Facilitation Program (TFP)? 

The TFF program is a direct loan program designed to finance the construction or modification of electric transmission facilities located in geographic areas designated as a NIETC by the Secretary of Energy.  

The Transmission Facilitation Program is a revolving fund program utilizing capacity contracts and public-private partnerships that is designed to invest in transmission projects to help accelerate their deployment and/or increase their capacity while also allowing DOE to eventually recoup its costs.  

Can TFF funds be used for transmission facilities entirely located outside of an area designated as a NIETC?  

No, TFF funds may only be used for projects that are located at least in part in a geographic area designated as a NIETC by the Secretary of Energy.  

For other sources of DOE funding, potential applicants are encouraged to visit the Grid and Transmission Program Conductor webpage, which provides more information on programs administered by DOE, as well as questions concerning the ability to pair different funding opportunities offered across DOE. 

If an entity receives other DOE funding (e.g. TFP, and other DOE departments) or funding from other Federal agencies, are they still eligible for TFF funding? 

Projects that are expected to benefit from other certain forms of federal support may not be eligible to receive a TFF loan. Examples include such federal support as grants, cooperative agreements, or other loans or loan guarantees from federal agencies or entities. Limited exceptions may apply, which may be considered on a case-by-case basis.  

Generally, companies or projects that have previously benefitted from federal support but no longer do (e.g., have exhausted the grant or repaid the loan in question) will not encounter federal support restrictions. If a company or project currently benefits from federal support, the applicant should evaluate whether this federal support impacts the same project or phases of a project for which the applicant is seeking TFF financing. 

Where can I find more information about the TFF program? 

The TFF program is currently in its development phase. DOE is actively seeking input from industry stakeholders to help inform its formal TFF application and evaluation process. If you’d like to contribute your ideas and thoughts, please reach out to the Program at [email protected].