Agency: Department of Energy – Loan Programs Office
Description:
For costs of loan guarantees made under section 1703 of the Energy Policy Act of 2005, including administrative expenses. Up to $40 billion of loan authority available. For projects that (1) avoid, reduce, utilize, or sequester air pollutants or anthropogenic emissions of greenhouse gases; and (2) employ new or improved technologies.
Bill Section:
50141
US Code:
42 USC 16513
New or Existing:
Existing
Potential Cost:
$4,330,000,000
Timeline:
FY22-26
TCS Notes:
Supplemental appropriations of $3.6 billion provided in IRA, $108 million of which can be reserved for administrative expenses, but CBO estimates higher budget authority ($4.33 billion) because of its assumption that “it will be difficult to set the fee paid by the borrower to entirely cover the estimated cost to the government of certain infrastructure projects. Therefore, CBO estimates that the subsidy costs will exceed the budget authority allocated for such loans or loan guarantees.”
Projects must “avoid, reduce, utilize, or sequester air pollutants” or GHG emissions, but no specific reductions specified.