New U.S. Department of Energy Program Offers $2 Billion in Loan Guarantees for Tribal Energy Development Projects
Today, the U.S. Department of Energy (DOE) released the solicitation for its new Tribal Energy Loan Guarantee Program (TELGP) aimed at increasing the capacity of the commercial lending market for tribal energy activities by providing up to $2 billion in loan guarantees to eligible lenders. The energy sector is a substantial market for Indian Country, with DOE estimating that at least 10 percent of all energy resources in the United States are contained within tribal lands.
"The U.S. Department of Energy's new Tribal Energy Loan Guarantee Program represents a significant opportunity for Indian Country," stated Tina Danforth, President of Nafoa. "Deploying $2 billion in loan guarantees will strengthen tribal economies through private sector investment in a wide range of energy projects and activities."
The program, which was created in 2005 but only recently received funding through the 2017 Omnibus Bill, is designed to catalyze sustained investment in tribal communities by allowing DOE to guarantee up to 90 percent of the unpaid principal and interest on any loans made to federally recognized tribes for energy development.
Under TELGP, a broad range of energy development activities are covered, from traditional fuel extraction to renewable energy projects, including but not limited to: electricity generation, transmission and distribution facilities; energy storage facilities; energy resource extraction, refining, or processing facilities; energy transportation facilities; district heating and cooling facilities; cogeneration facilities; and distributed energy project portfolios, including smaller distributed facilities.
According to DOE, TELGP applications will be reviewed in two phases, with Part I focusing on the project description, development, structure, financing, and management. The due date for Part I of the application is September 19, 2018 . F ollowing a favorable determination under Part I, DOE will invite successful applicants to submit Part II beginning on October 17, 2018. See the solicitation for more information.
Interested applicants should contact the DOE Loan Programs Office by emailing TELGP@hq.doe.gov or calling (202) 586-1262 .
If you have any questions or comments, please contact Ryan Ward at email@example.com or (202) 594-6593.