On November 15, 2021, the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) was signed into law to rebuild the nation’s failing bridges and roads and fund new climate resilience and broadband initiatives. As a sign of relief to those in the construction industry, billions of dollars are now being funneled to state and local governments for a host of desperately needed upgrades to aging public infrastructure. With the largest infusion of federal investment in the 21^st century, nearly every facet of the American economy will be touched.

One sector that particularly stands to benefit from this legislation is the electric utility industry, where $65 billion has been allocated for electric grid infrastructure repair and renovation. Through this bill, funding for the modernization of the country's national power infrastructure would reach its highest levels to date.

No doubt, the price tag is enormous. However, the necessity for these enhancements is more vital than ever, and failing to make the needed improvements can prove even costlier down the road. Below is a breakdown of the funds designated for grid infrastructure and resiliency across the country:

• $23 billion to enhance the resiliency of the power infrastructure and investment in renewable energy
• $21.5 billion to develop clean energy demonstrations and research hubs
• $9 billion to enhance manufacturing facilities and projects
• $5 billion to boost energy efficiency and clean energy creation

All Systems Go for Clean Energy

According to the Department of Energy (DOE), power outages cost the U.S. economy up to $150 billion each year. The IIJA’s substantial investment in clean energy transmission and grid upgrades will help to dramatically improve America's power infrastructure by establishing new, resilient transmission lines over thousands of miles to facilitate the growth of clean energy and renewables while reducing costs. The plan also includes measures that would likely expedite the permitting process for transmission lines, which can take decades.

Additionally, new programs will be created that support the development of revolutionary clean energy technologies to accelerate the nation's transition to a zero-emission economy. Although $27 billion less than the original proposal, the bipartisan plan is still the single largest investment in clean energy transmission in the nation’s history.

Cybersecurity Threats

Both the government and utility industry have stepped up their efforts to crack down on ever-growing cybersecurity threats. The billions of dollars allotted by the IIJA for cybersecurity projects will significantly help electric utilities protect their networks from digital attacks and further support their ability to address the constant changes and updates required for optimal security.

One provision in the infrastructure bill calls for the Secretary of Energy to implement a program that will strengthen electric utilities’ cybersecurity and physical security. This plan encourages the continued partnership between the Department of Energy (DOE) and the American Public Power Association (APPA) to deliver expanded training, resources, and cybersecurity tools to smaller and medium-sized electric utility companies.

Extreme Weather Hazards

Another big challenge for maintaining optimal performance and functioning of electric utilities is ensuring grid resilience under severe weather conditions. Hurricanes, tornados, heatwaves, and other severe weather occurrences have greatly impacted our nation's infrastructure, with damages costing taxpayers $99 billion in 2020 alone.

“When we think about extreme weather, the infrastructure that’s most susceptible to damage and has the biggest impact on our communities is the power grid,” says Urbint, VP of Strategy and Policy, Mishal Thandani. “This is largely because of overhead infrastructure like power lines, which is unique to the electric industry. Electric utilities will be able to apply to the [$5 billion] grant program to help make the grid more resilient through things such as pole replacement, vegetation management, system hardening, and even artificial intelligence projects.”

Along with these precautionary measures, the bill will provide funding to boost efforts for a faster and more effective response in the aftermath of major natural disasters. In addition, it will protect employees from weather-related accidents that often lead to costly construction injury cases and workers compensation claims.

Electric Vehicles

Funding toward the creation of a national electric vehicle (EV) charging network along highways and in rural neighborhoods is an additional boon to the electric utility industry. By investing $7.5 billion in EV charging and alternative fuels, the utility sector can now power ahead with its efforts to deploy clean energy and continue to provide communities with the unique transportation programs needed to support EV adoption.

The ultimate goal is to get more EVs on the road and seamlessly integrate this form of transportation into a national grid network. Still, hurdles will be met along the way. While the increased electricity demand from more EVs is an expected outcome, utilities must be up to the task of balancing greater grid loads and handling the challenges that come with it.

Final Thoughts

This historic Infrastructure Investment and Jobs Act legislation is a calculated and much-needed investment in dependable energy, upgraded cybersecurity, and a national EV charging network. Today, electricity demands are greater than ever, and the implementation of more clean energy into already overworked grids must be addressed sooner rather than later. By upgrading the nation’s electric grid, America will be better equipped and prepared to deliver efficient and reliable energy to all those who need it.