The Department of Energy will offer $50 million in grants for “affordable, reliable, and secure energy development” to benefit tribal nations, with the goal of lowering energy costs and expanding energy access, DOE said Wednesday.
Individual tribal community energy deployment projects are eligible for grants of up to $7.5 million, while pre-development activities in the form of “planning, assessment, and feasibility” for community-scale energy projects can receive $1.5 million, according to the notice of funding opportunity. Grantees can receive up to $2.5 million for pre-development activities for large-scale projects.
“This NOFO supports planning and feasibility assessments for large-scale Tribal energy projects that can then allow Tribes to unlock additional financing through the DOE’s Office of Energy Dominance Financing Tribal Energy Financing Program,” DOE said. “The TEFP focuses on large-scale energy development and was recently amended by the Working Families Tax Cut to eliminate the Federal Support Restriction.”
Tribal nations looking to expand their energy infrastructure experienced a significant federal funding setback when the Trump administration canceled $7 billion in Solar For All funding, more than $500 million of which was earmarked for solar development on tribal lands.
According to the funding opportunity, examples of potentially eligible projects include “a combination of energy generation (e.g., diesel/gas, geothermal, hydrokinetic, or hybrid systems) and a battery energy storage system for a remote Tribal Village that is not connected to the traditional power grid,” a combined heat and power to offset the electric power from the grid, or the installation of a biomass boiler.
DOE’s announcement said the new funding opportunity aligns with President Donald Trump’s day-one executive order, “Unleashing American Energy,” which prioritizes fossil fuel development while walking back Biden-era initiatives like electric vehicle mandates.
The funding opportunity outlines program policy factors which can influence the selection of projects for awards, including “the degree to which the proposed project will support the supply of firm, reliable power.”
Other factors include the representation of “a desired technology diversity” and the degree to which the project serves tribes with high energy costs or inadequate electrical service. The selection criteria may also prioritize applicants “who have not previously received financial assistance from the Office of Indian Energy.”
