Montana to receive $47M grant to fund infrastructure projects in SE Montana

Utility companies are spending billions building out transmission and distribution lines around the country, leading some to call for an independent monitor to protect customers. (Robert Zullo | States Newsroom)

The Montana Department of Commerce is set to receive $47.5 million in federal grant money that Rosebud, Custer, and Fallon counties, along with the Northern Cheyenne Tribe, will be able to apply for to fund infrastructure projects as the build-out of electrical transmission lines takes shape in coming years.

The department announced Monday it was receiving the grant money for its Southeastern Montana Transmission Siting and Economic Development Initiative after the U.S. Department of Energy last week announced the project was one of 20 across 16 states set to receive up to $371 million in Transmission Siting and Economic Development grants.

“This grant is going to help the communities of southeastern Montana update their infrastructure to handle the increased impacts from transmission line construction,” said Montana Department of Commerce Director Paul Green. “While the construction workers will come and go, the investments in these areas will be felt for generations to come.”

The three counties and one tribe will be able to apply for portions of the money to go toward roads, water, sewer, emergency services and workforce and infrastructure development projects if they agree to match 5% of the money they request.

The funding is aimed at helping the communities deal with the construction effects of the build-out of the North Plains Connector transmission line , a 415-mile line which will connect Colstrip to North Dakota and run through the three counties, creating another connection between the western and eastern grids in the U.S. Construction is expected to being in 2026.

While the line will not run through the Northern Cheyenne lands, commissioners from the three counties agreed to earmark 10% of the money for the tribe so it could apply as a region. Those four entities are the only that can apply to the Department of Commerce for the funding and can apply on behalf of cities or other organizations.

The grant also includes funding for three full-time employees at the Department of Commerce and for a part-time industry development manager. The department expects to receive the grant money by next summer, and it would be available when construction starts in 2026, a department spokesperson said.

The U.S. Department of Energy expects to release another round of Transmission Siting and Economic Development Grant opportunities this fall, it said. The grants are aimed at speeding up the process for electricity transmission projects to get permits and start construction, and mitigating how that construction affects the counties where the projects are being built.

“Access to a steady supply of affordable and reliable energy is critical for our communities,” Gov. Greg Gianforte said in a statement. “I’m grateful to the Montana Department of Commerce for ensuring all Montana communities impacted by this investment are made stronger.”

The North Plains Connector project said if it can get permits secured and construction underway in 2026, the line could be operational by 2031.