Special Notice for Request for Proposals for Section 40106 of the Infrastructure Investment and Jobs Act Capacity Contracts

This announcement is not a grant nor a funding announcement nor a procurement but a request for a capacity contract under the specific authority granted to the Secretary under Section 40106 of the IIJA.

The Infrastructure Investment and Jobs Act (IIJA or the Act), Public Law 117-58, codified at 42 U.S.C. 18713, directs the Secretary of Energy (Secretary) to establish a program, to be known as the “Transmission Facilitation Program” or “TFP,” under which the Department of Energy (DOE or the Department) may facilitate the construction, replacement, or capacity upgrade of certain eligible electric power transmission lines and related facilities (Eligible Projects). The goals of the TFP program are to facilitate the construction of transmission infrastructure and technologies that improve and enhance the capacity, efficiency, resiliency, or reliability of the electric power transmission system and improve and enhance access to low cost and low carbon energy resources while ensuring repayment of TFP support.

DOE can offer three types of support under TFP to facilitate construction of Eligible Projects: capacity contracts (which provide a commercial source of revenue), loans (providing debt support), and public private partnerships (providing equity support).  This Request for Proposals (RFP) specifically solicits applications for capacity contracts (Applications) through a two-part application, screening, and in-depth review process to support the TFP program goals to accelerate the development and construction of high voltage transmission lines that to the maximum extent practicable advance the priorities set forth in 42 U.S.C. 18173(j)(8). Announcements for public private partnerships, loans, and opportunities to connect an isolated microgrid to an existing transmission, transportation, or telecommunications infrastructure corridor located in Alaska, Hawaii, or a territory of the United States will be offered in future solicitations.

Part 1 of the Application requires applicants to provide information describing how the proposed project will satisfy key statutory criteria to allow the Department to initially screen Applicants and determine which projects to invite to submit a more in-depth Part 2 application. Based on the Part 2 Application evaluation, DOE will invite a limited number of projects into a due diligence phase and to negotiate a binding agreement in connection with the selection of projects for award of a capacity contract.

In accordance with 42 U.S.C 18713(c)(2), this RFP establishes the procedures for solicitation and review of applications for capacity contracts under the TFP and for evaluation of applications consistent with those procedures. The Department is inviting entities that are pursuing potential Eligible Projects (Eligible Entities) and that forecast a start of construction date no later than December 31, 2027, to apply for capacity contract support pursuant to this RFP.

Key RFP Dates:

RFP Issue Date

November 18, 2022

Informational Webinar

November 30, 2022

Submission Deadline for Part 1

February 1, 2023 5:00pm ET

Submission Deadline for Part 2

45 days from invitation to apply 5:00pm ET

Expected Date for DOE Selection Notification, Conduct of Due Diligence, and Contract Execution

Summer of 2023

Interested parties shall use the following link to find out more information and to submit a proposal. 

Announcement may be found at: https://www.energy.gov/sites/default/files/2022-11/GDO-TFP-REQUEST%20FOR%20PROPOSALS%20%E2%80%93%20CAPACITY%20CONTRACTS-11.18.pdf

This announcement is not a grant nor a funding announcement nor a procurement but a request for a capacity contract under the specific authority granted to the Secretary under Section 40106 of the IIJA.