Loan Programs Summary
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 over $40 billion in total funding available for such programs. This report summarizes these programs. The LPO provides access to debt capital, flexible financing, close partnerships throughout the loan term, and specialized financial, legal, technical and environmental expertise to all of the programs listed below. These programs also focus on projects which aim to reduce, avoid or sequester greenhouse gas emissions.
The LPO has $8.5 billion in loan guarantee authority 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 finance projects in four broad technology categories: advanced resource development, low-carbon power systems, carbon capture and efficiency improvements.
The LPO has $10.9 billion in loan guarantee authority for Advanced Nuclear Energy Projects, including $2 billion for front-end projects, under Title 17 Innovative Energy Loan Guarantee Program (Title 17), authorized by the Energy Policy Act of 2005. This program helps finance projects in four broad technology categories: advanced nuclear reactors, small modular reactors, uprates and upgrades at existing facilities, and front-end nuclear technology (uranium conversion or enrichment, and/or nuclear fuel fabrication).
The LPO has $17.7 billion in loan authority to support the manufacture of eligible light-duty vehicles and qualifying components under the Advanced Technology Vehicles Manufacturing Loan Program (ATVM), authorized by the Energy Independence and Security Act of 2007. Two types of borrowers are eligible under ATVM: manufacturers of advanced technology vehicles that achieved defined fuel economy targets, and manufacturers of components or materials that support eligible vehicles’ fuel economy performance.
The LPO has $2.5 billion in loan guarantee authority 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. Technology areas of interest for this program include advanced grid integration and storage, drop-in biofuels, waste-to-energy technology, enhancement of existing facilities and efficiency improvements.
The LPO has $2 billion in loans to support economic opportunities to tribes through energy development projects and activities, via the Tribal Energy Loan Guarantee Program (TELGP). DOE can guarantee up to 90% of the unpaid principal and interest due on any loan made to federally recognized Indian tribe or Alaska Native Corporation for energy development. The tribal borrower will need to invest equity in the project and all project debt will be provided by non-federal lenders.
Infrastructure Investment & Jobs Act - DOE
Summary of BIL Components & Current Notice of Funding Opportunities
The Infrastructure Investment & Jobs Act (otherwise known as the Bipartisan Infrastructure Law, or BIL), which was signed into law by President Joe Biden on November 15t, 2021, has made historic investments in America’s environmental infrastructure. The U.S. Department of Energy (DOE)’s various grant programs have received substantial new financial support under BIL. The new resources that the DOE has obtained under BIF have been summarized below:
- The law provides more than $62 billion for the DOE overall, which will help fund 60 new DOE programs.
- The law provides $21.5 billion in funding for clean energy technology and research hubs focused on next-generation technology, including:
- $8 billion for clean hydrogen
- More than $10 billion for carbon capture, direct air capture and industrial emission 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 hydropower facilities.
- The law provides $6 billion for the Civilian Nuclear Credit Program to prevent the premature retirement of existing zero-carbon nuclear plants.
- The law provides $11 billion for environmental resilience and cybersecurity improvements for electrical infrastructure across states, tribes and utilities.
- The law invests more than $7 billion in the supply chain for batteries.
- The law provides $1.5 billion in additional funding for clean hydrogen manufacturing and recycling RD&D.
- The law provides $750 million for grant programs that support energy technology manufacturing projects in communities whose coal mines and/or coal-powered energy plants have shut down.
- The law provides $3.5 billion for the Weatherization Assistance Program, which reduces energy costs and increases energy efficiency for low-income households.
- The law provides $500 million for energy efficiency and renewable energy improvements in schools.
- The law provides $550 million for the Energy Efficiency and Conservation Block Grant program and $500 million for the State Energy Program.
- The law establishes a $2.5 billion Transmission Facilitation Program for the DOE to help develop energy transmission infrastructure.
- The law provides a $3 billion expansion of the Smart Grid Investment Matching Grant Program.
A full list of outstanding notice of funding opportunities for the DOE’s grant programs can be found below.
