A significant step forward has been made in the development of a new transmission line aimed at enhancing electric reliability in Santa Cruz County, with an opportunity to receive up to $75 million from the U.S. Department of Energy (DOE). The DOE announced that UNS Electric, Inc., the operating subsidiary responsible for electric service in the region, has been selected to proceed with negotiations for federal funding through its Grid Resilience and Innovations Partnerships (GRIP) program.
The funding would support the Santa Cruz Reliability Project, which seeks to upgrade the existing single transmission line to a looped system, improving reliability and increasing capacity to foster economic growth. If the grant is approved, it could cover over 40% of the project's costs.
“We’re excited about the opportunity to advance in the grant review process,” said Susan Gray, President and CEO of UniSource. “Every dollar we receive would reduce the costs ultimately reflected in our future rates, supporting long-term energy affordability.”
The GRIP program is designed to enhance grid flexibility and resilience, investing a total of $10.5 billion to ensure American communities have access to reliable and affordable electricity. The Santa Cruz Reliability Project will benefit various sectors, including the fresh produce industry, mining operations, and businesses in the electric vehicle supply chain, while also stimulating private sector investments in the region.
The application for the grant was developed in collaboration with local leaders, including representatives from the Fresh Produce Association, the City of Nogales, Sun Corridor Inc., and the Greater Nogales-Santa Cruz Port Authority. The project will also be executed in partnership with the International Brotherhood of Electrical Workers (IBEW).
Maria Robinson, Director of the Grid Deployment Office at the DOE said, “The new UNS Electric transmission line will enhance reliability and facilitate the integration of clean energy resources to protect underserved communities,” she stated.
The negotiation process for the grant is expected to take at least 120 days. The Santa Cruz Reliability Project is currently in the planning phase, with public outreach already initiated for the first of three phases, which involves constructing a second 138 kil.
