PSC adopts design and $10 million budget for Energy Innovation Grant Program Round 6, clarifies geothermal and non-ground-disturbing priorities

The Public Service Commission on March 19 approved the program design and a $10 million budget for Round 6 of the Energy Innovation Grant Program (EIGP), preserving broad applicant eligibility while directing staff to clarify application instructions and to prioritize implementation projects less likely to require DOE NEPA ground-disturbance review.

Commissioner Nieto, leading the discussion on docket 9709-FG-2026, said the program (funded through the U.S. Department of Energy State Energy Program and prior ARRA funds) benefits municipalities, schools, universities, hospitals, utilities, co-ops and nonprofits. Nieto told commissioners that an updated DOE NEPA determination will require additional federal review for projects involving ground disturbance or vegetative impacts, which could lengthen timelines.

Given that change, Nieto supported Alternative 1 (broad eligibility) with sub‑alternative 1a: retain the staff’s eligible activities table but place a priority favoring projects that do not require ground disturbance (for example, rooftop solar PV and some battery installations). He also proposed application-instruction edits to clarify planning-category eligibility (including geothermal market-transformation planning) and to treat workforce training and technical assistance as allowable planning efforts.

Commissioners debated whether signaling a priority against ground disturbance could chill certain technologies. Chair Strand and Commissioner Hawkins both argued for broadly open eligibility so applicants are not precluded from proposing projects that may require later federal review; Nieto and others emphasized clearer applicant outreach and application instructions so grant applicants understand NEPA risks.

On budget allocations, commissioners agreed to a $10,000,000 overall round. Nieto suggested shifting some funding away from implementation category 1 (renewables and storage) toward energy efficiency and demand response to increase the number of projects likely to avoid ground-disturbing activities. Commissioners asked staff to incorporate the red-line handout and the agreed clarifications into application instructions and outreach materials.

Commissioner Nieto moved to approve the program design and budget consistent with the discussion; the motion was seconded and approved by voice vote. Staff were directed to post the updated application instructions and to add a specific callout for geothermal feasibility under comprehensive energy planning guidance.