Energizing Our Communities Act

Full Title:
Energizing Our Communities Act

Summary#

This bill creates the Community Economic Development Transmission Fund (the Fund). The Fund will hold a portion of the interest charged and collected on certain Department of Energy loans for very large electric transmission projects (those capable of transmitting 999 megawatts or more and other projects identified by the Secretary). The Fund is managed by the Secretary of Energy and used to make payments to local governments and Indian Tribes that host those transmission projects.

The Secretary of Energy, with the Treasury, will decide what portion of loan interest is deposited in the Fund. The Secretary must notify host communities about payments during federal siting and permitting. Payments are to be made no later than 18 months after construction of the project starts. A host community may receive at most one payment per eligible project and must request payment within 1 year after receiving notice and certify how funds will be used. The Secretary will use a disbursement formula that aims to keep the Fund solvent, takes input from host communities, and includes a minimum for small-population communities.

Use of funds is limited. Up to 80 percent may be used for community support items such as public schools, libraries, hospitals, roads, broadband at community anchor institutions, agricultural support, workforce training for renewable energy careers, and public health projects including parks. At least 20 percent must be used for conservation, stewardship, or recreation, including restoring habitat, improving access to public lands or water, outdoor recreation facilities, natural climate solutions, and related activities. Payments are in addition to any payments in lieu of taxes under existing law. The Secretary must also deliver an initial report within 90 days identifying DOE loan programs that fund very large transmission lines and must send annual reports on Fund deposits, balances, and payments to recipient communities.

What it means for you#

  • If a large transmission project is built on land under your local government or tribal jurisdiction, your community may be eligible for a one-time payment from the Fund.
  • Your community must get notice during federal siting or permitting, request the payment within 1 year of that notice, and certify how the money will be used.
  • Most of the money (up to 80%) can be used for local services and infrastructure listed in the bill; at least 20% must go to conservation, stewardship, or recreation projects.
  • Payments are separate from existing federal payments in lieu of taxes.

Expenses#

  • The Fund receives a portion of interest collected on covered DOE loans for the specified transmission projects. The Secretary of Energy, with the Secretary of the Treasury, will set the portion of interest deposited into the Fund.
  • Amounts in the Fund are available for payments as provided in appropriation Acts.
  • No publicly available information on total funding amounts, specific deposit percentages, or projected annual costs is provided in the bill text.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.