Summary of credit programs
The Loan Programs Office (LPO) within the Department of Energy (DOE) provides a variety of different loans and loan guarantees for energy-related projects, with more than $40 billion in total funding for such programs. This report summarizes these programs. LPO provides access to debt capital, flexible financing, close partnerships throughout the life of the loan, and specialized financial, legal, technical and environmental expertise for all programs listed below. These programs also focus on projects that aim to reduce, avoid or sequester greenhouse gas emissions.
Extended Loan Guarantees for Fossil Energy Projects
The LPO is authorized to guarantee $8.5 billion in loans for advanced fossil energy projects under the Title 17 Innovative Energy Loan Guarantee Program (Title 17), authorized by the Energy Policy Act of 2005. This program helps to fund projects in four broad technology categories: advanced resource development, low-carbon energy systems, carbon capture and efficiency improvements.
Extended loan guarantees for nuclear power projects
The LPO has $10.9 billion in loan guarantee authority for advanced nuclear energy projects, including $2 billion for pre-engineered projects, under the Title 17 Innovative Energy Loan Guarantee Program (Title 17) authorized by the Energy Policy Act since 2005. This program helps fund projects in four broad technology categories: advanced nuclear reactors, small modular reactors, improvements and upgrades to existing facilities, and advanced nuclear technologies (uranium conversion or enrichment and/or nuclear fuel production).
Advanced Technology Vehicle Manufacturing Loan Program
The LPO has $17.7 billion in loan authority to support production of eligible light-duty vehicles and eligible components under the Advanced Technology Vehicle Manufacturing (ATVM) Loan Program authorized by the Energy Independence and Security Act since 2007. Two types of borrowers are eligible under the ATVM: manufacturers of advanced technology vehicles that have met certain fuel economy goals, and manufacturers of components or materials that support the fuel economy performance of eligible vehicles.
Guarantees for innovative clean energy loans
The LPO has the authority to guarantee $2.5 billion in loans for innovative clean energy projects under the Title 17 Innovative Clean Energy Loan Guarantee Program (Title 17), authorized by the Energy Policy Act of 2005. The technology areas of areas of interest for this program include advanced grid integration and storage, drop-in biofuels, waste-to-energy technology, upgrading existing facilities and efficiency improvements.
Tribal Energy Loan Guarantee Program
The LPO has $2 billion in loans to support economic opportunity for tribes through energy development projects and activities, through the Tribal Energy Loan Guarantee Program (TELGP). DOE may guarantee up to 90% of the unpaid principal and interest due on any loan made to a federally recognized Indian tribe or Alaska Native Energy Development Corporation. The tribal borrower will be required to invest equity in the project and all project debt will be provided by non-federal lenders.
Infrastructure Investment and Jobs Act – DOE
Summary of BIL components and current notification of funding opportunities
The Infrastructure Investment and Jobs Act (also known as the Bipartisan Infrastructure Act or BIL), which was signed into law by President Joe Biden on November 15, 2021, made historic investments in America’s green infrastructure. Various US Department of Energy (DOE) grant programs have received significant new funding support under the BIL. The new resources DOE received under the BIF are summarized below:
- The law provides more than $62 billion for DOE as a whole, which will help fund 60 new DOE programs.
- The Act provides $21.5 billion in funding for clean energy technologies and research centers focused on next-generation technologies, including:
- $8 billion for clean hydrogen
- More than $10 billion in carbon capture, direct air capture and industrial emissions reduction
- $2.5 billion for advanced nuclear technology
- $1 billion for demonstration projects in rural areas and $500 million for demonstration projects in economically disadvantaged communities
- The law provides more than $700 million for existing hydroelectric facilities.
- The law provides $6 billion for Civil Nuclear Credit Program to prevent the premature decommissioning of existing zero-carbon nuclear plants.
- The law provides $11 billion for environmental sustainability and cybersecurity improvements for electric infrastructure in states, tribes and utilities.
- The Act invests more than $7 billion in the battery supply chain.
- The law provides $1.5 billion in additional funding for R&D into clean hydrogen production and recycling.
- The Act provides $750 million for grant programs that support energy technology manufacturing projects in communities whose coal mines and/or coal-fired power plants have closed.
- The law provides $3.5 billion for Time Assistance Programwhich reduces energy costs and increases energy efficiency for low-income households.
- The law provides $500 million to improve energy efficiency and renewable energy in schools.
- The act provides $550 million for the Energy Efficiency and Conservation Grant Program and $500 million for State Energy Program.
- The law establishes $2.5 billion Transmission Facilitation Program for DOE to help develop energy transmission infrastructure.
- The law provides for an expansion of $3 billion Smart Grid Investment Matching Grant Program.
A complete list of outstanding Notices of Funding Opportunities for DOE grant programs can be found below.