During the first week of March, the Department of Energy’s Loan Programs Office (LPO) participated at Reservation Economic Summit (RES) 2020 to engage with tribal leaders and businesses about the opportunities to expand energy infrastructure through the Tribal Energy Loan Guarantee Program (TELGP). LPO Senior Advisor John Lushetsky spoke on a panel about access to capital for tribes, and LPO Director of Origination Douglas Schultz presented on a panel about capital for tribal oil and gas projects.
As one of the largest gatherings in the country dedicated to tribal economic development, RES provided a good forum to inform Indian Country about an important update to TELGP that was made in January 2020, in response to recent legislation.
The update expanded eligibility of TELGP loan guarantees to Tribal Energy Development Organizations (TEDOs), which are defined as joint ventures that are majority owned and controlled by eligible tribes. This change opens up new possibilities for financing of tribal energy projects under TELGP, while maintaining support for tribal sovereignty through the ownership of energy projects.
Based on conversations throughout the week, a growing number of tribes are making plans for energy projects as an avenue for utilizing their resources to expand economic development. By facilitating access to commercial debt capital through loan guarantees, LPO is hoping to be a partner with tribes in making those plans a reality.
