Program

Department of Energy Loan Guarantee Authority

Category

Energy - Alternative

Subsidy Type

Finance

Committees of Jurisdiction

House Energy and Commerce Committee, Senate Energy and Natural Resources Committee

$ FY 22 Budget Score (in mil.)
$ FY 22-31 Budget Score (in mil.)

The Department of Energy’s (DOE) Loan Guarantee Program was created for the purpose of lowering the financial risk of large private sector commercial energy projects that use advanced technologies. Amendments to the program have expanded the list of eligible technologies to include: nuclear, certain coal, carbon capture and sequestration (CCS) technologies, hybrid gas or diesel vehicle manufacturing facilities, oil refineries, gasification technology, and even technologies for producing, manufacturing and processing certain minerals. The program provides loan recipients with the backing of the U.S. Treasury if they should default on their privately financed loans, effectively underwriting the risk and increasing the attractiveness to investors. The program was created by the Energy Policy Act of 2005 and has $23.9 billion in loan guarantee authority remaining

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