Department of Energy Updates Tribal Loan Guarantee Program

Jun 23, 2022 | Insights

On May 25, the U.S. Department of Energy’s (DOE) Loan Program Office announced important updates to the Tribal Energy Loan Guarantee Program (TELGP). In response to tribal comments, the revisions eliminate the application, facility, and maintenance fees payable to DOE, which tribes cited as impediments to participation. The revisions also clarify that federally recognized tribes and qualified tribal energy development organizations are eligible borrowers, and that projects may include projects on tribal lands as well as eligible off-reservation projects.

In addition to these updates, DOE stated that it will soon provide additional information on its new authority to issue direct loans in addition to loan guarantees. This new authority was provided under the Consolidated Appropriations Act of 2022 that passed Congress on March 15, 2022.

The TELGP provides loan guarantees of up to $2 billion for investments in tribal energy projects, including utility-scale projects on tribal lands. The DOE can guarantee up to 90 percent of the unpaid principal and interest on any loan made to an Indian tribe for energy development, including fossil energy production and mining, renewable energy, transmission infrastructure, and energy storage projects.  

Revised materials to apply for a loan guarantee are available here.

Patterson Earnhart Real Bird & Wilson LLP works with the White House, members of Congress, and federal officials to advance the interests of its clients. To learn more about how we can assist your tribe in Washington D.C., contact our Washington D.C. office at (202) 340-8232.