Agency: Department of Energy – Loan Programs Office
Description:
Loan guarantees through DOE’s Loan Programs Office via a separate sub-program for projects that retool, repower, repurpose, or replace energy infrastructure that has ceased operations; or enable operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants or anthropogenic emissions of greenhouse gases.
Bill Section:
50144
US Code:
42 USC 16517
New or Existing:
New
Potential Cost:
$5,100,000,000
Timeline:
FY22-26
Implementation Status/Rulemaking:
Program design and rulemaking is underway to refine definition of eligible recipients. On May 30, 2023, DOE released an interim final rule to establish regulations necessary to implement the Energy Implementation Reinvestment Program. The comment period ended July 31, 2023. A final rule is anticipated in April 2024: Source
TCS Notes:
Potential projects could include updating operating energy infrastructure with emissions control technologies, including carbon capture, utilization, and storage (“CCUS”). In addition to appropriating new spending, this section increased the total loan authority; the IRA authorizes the Secretary of Energy to guarantee loans up to a total principal amount of $250 billion.
Supplemental appropriations of $5 billion are provided in IRA, but CBO estimates slightly higher budget authority ($5.1 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.”