Update as of August 16, 2022: The Inflation Reduction Act has made permanent Tribal borrowers’ ability to apply for direct loans through TELGP from the U.S. Treasury’s Federal Financing Bank (FFB).
Today, DOE’s Loan Programs Office (LPO) issued an updated solicitation for the Tribal Energy Loan Guarantee Program (TELGP) to implement direct lending authority. The update provides eligible tribes and other organizations the ability to apply for direct loans for eligible energy projects through the U.S. Treasury’s Federal Financing Bank, as authorized under The Consolidated Appropriations Act, 2022, Public Law No. 117-103. This direct loan authority will expire at the end of this fiscal year (September 30, 2022) unless extended by Congress.
TELGP was originally established to provide partial guarantees of commercial or other qualified loans made to a federally recognized Indian tribe, Alaska Native Corporation, or tribal energy development organization, for energy development. This part of the TELGP program is not affected by today’s announcement.
To implement the direct loan authority, LPO issued a supplement to the TELGP solicitation and published an updated copy of the solicitation indicating the direct loan implementing provisions.
Given recent updates and improvements to TELGP, LPO also rolled out today a new lending reference guide intended to help potential applicants gain a better understanding of the program and facilitate engagement with LPO staff about projects that could benefit from either direct loans or loan guarantees.
The release of the direct lending supplement today builds on DOE’s July 25 announcement that 146 programs at the Department support President Biden’s Justice40 Initiative, which aims to ensure Federal agencies deliver 40% of the overall benefits of climate, clean energy, affordable and sustainable housing, clean water, and other investments to disadvantaged communities. Each of LPO’s loan programs, including TELGP are covered under the Justice40 Initiative.