The US Department of Energy has decided to keep at least one energy program from the Biden era

The Energy Department said Thursday it has finalized a $1.6 billion loan guarantee to upgrade about 5,000 miles of transmission lines.

The grid upgrades would ease the flow of electricity in Indiana, Michigan, Ohio, Oklahoma and West Virginia. The project, which will handle lines owned by American Electric Power, will not add any new lines, but it will help existing lines carry more power.

AEP is one of the largest owners of utilities and transmission lines in the United States, with operations covering 11 states. The 5,000 miles to be upgraded represent about 13% of the company’s total network.

The loan guarantee began under the Biden administration just days before President Trump’s inauguration. Previously, the Trump administration had cited approvals occurring between Election Day and Inauguration Day as justification for canceling projects.

It is unclear what distinguishes this grid modernization project from other projects the Trump administration is considering or is canceling.

And in Minnesota, the Department of Energy is moving to cancel a $467 million grant that would have helped unlock 28 gigawatts of new generation capacity, much of which would have been solar and wind. Another project in Oregon was scheduled to issue $250 million in grants to connect six renewable energy projects.

But the biggest transportation project the Trump administration wants to cancel is a $630 million grant to modernize California’s grid. It is similar in many ways to the AEP project, as it looks to extract more from the existing network to relieve congestion. As planned, the California project will test advanced conductors and dynamic line classifiers, both of which will allow legacy rights-of-way to carry more electricity. This is often a cheaper option than building new power lines.

The AEP project will also reconnect the lines with new conductors. The loan guarantee will allow the utility company to secure a lower interest rate, saving the company at least $275 million, which it says will benefit its customers.

Energy Secretary Chris Wright said the loan “will ensure lower electricity costs throughout the Midwest region of the United States.” Indeed, the states included in the project have the lowest electricity rates in the country.

The loans will be issued from the Office of Loan Programs, which the GOP has renamed the Energy Dominance Financing Program. The office was created by the Energy Policy Act in 2005. Historically, the office has focused on clean energy and manufacturing projects. The loss rate on its loans is about 3%, which is much lower than the loss rate of private lenders.