Article
IIJA lessons learned: Five actions to access infrastructure grant funding
Aug. 30, 2023 · Authored by Brooke Opel, Miranda Wojciechowski
In November 2021, the President signed into law the historic $1.2 trillion bipartisan Infrastructure Investment and Jobs Act (IIJA) that has resulted in hundreds of funding opportunities to improve our nation’s highway and bridges, transit systems, railroads, broadband networks, energy grids, drinking water and more. What at first appeared to be a great opportunity to fund projects immediately has turned out to be slower and more complicated now that we are over a year into this five-year (2022–2026) legislative program.
Federal agencies responsible for overseeing these multiyear funding programs for large, complex projects have taken longer than expected to open application rounds and distribute funds. Some programs weren’t announced in 2022, but instead announced as larger opportunities in 2023, with first-year and second-year funding combined. At the same time, some IIJA funding is passing through states with state-led grant programs, making it difficult to track or even slower to distribute. Finally, some agencies have split or combined sections of IIJA funding in ways that weren’t originally anticipated.
So, what does this mean for utilities, municipalities and tribes that still want to pursue IIJA funding?
IIJA lessons learned in year one
It means that grant opportunities have been delayed, more difficult to track and announced in complicated ways. Notable examples that are most relevant to public power include:
GRIP combines three sections of the IIJA into one large grant opportunity with three topic areas that have different deadlines and application requirements. All topic areas require a concept paper followed by a full application, if encouraged to apply. These grants, especially topic area 1, are highly competitive.
- Topic Area 1 - Grid Resilience - IIJA Section 40101(c): For projects that will strengthen the grid against extreme weather and natural disasters, with 30% set aside for small utilities
- Topic Area 2 – Smart Grid – IIJA Section 40107: For projects that use technology to increase flexibility, reliability and resilience
- Topic Area 3 – Grid Innovation – IIJA Section 40103(b): For projects that innovate and improve upon grid reliability and resilience locally, regionally and inter-regionally
Formula grant allocates pre-determined dollar amounts to states and tribes, which will then distribute the funds via state-led and tribal-led funding initiatives. This funding comes from the same section of IIJA, 40101(c), as GRIP Topic Area 1, and can be used for the same type of grid resilience activities. Because of the delay in kicking off this program and the deadline extensions already provided, DOE is issuing year one and year two funding allocations together. States and tribes have started to receive the funding on a rolling basis this summer. Municipalities and utilities, you should keep an eye out for announcements coming from your states.
Funding was anticipated to be one program but has turned into three different funding opportunities for rural and remote communities (defined by populations of 10,000 or less) to improve resilience, reliability and affordability of energy systems:
- Energizing Rural Communities Prize: $300,000 cash prizes to develop partnership plans or innovative financing strategies to help rural and remote communities improve their energy systems and integrate clean energy
- ERA Funding Opportunity: Traditional grant opportunity with a cost-share requirement to fund community or large-scale energy demonstration projects that address regional energy challenges
- ERA Fixed-Award: A grant opportunity designed to support small, community-drive clean energy and energy resilience projects with no cost share, an easier application process, and simpler compliance requirements
The two CFI grant programs — Corridor Charging and Community Charging — were announced together, and applicants could be considered for both by submitting only one application.
