LPO’s Innovative Clean Energy Loan Guarantee Program (Title 17 Section 1703) has a broad mandate. He has helped deploy innovative projects for clean hydrogen production and storage, renewable energy, advanced nuclear, and industrial decarbonization, among others.
The IRA is providing $40 billion in new lending authorization for these innovative clean energy loan guarantees. Combined with existing Title 17 lending authority, LPO has approximately $62 billion of loan guarantee authority available for new projects.
That sounds like a lot – and it is. But let me put it in context.
IRA credits unlock innovative clean energy authorities that have been expanded, but not funded, under the bipartisan Infrastructure Act (BIL). For example, BIL expanded LPO’s capacity to support the processing, manufacturing and recycling of critical minerals. In addition, BIL has allowed projects receiving financial support from a public energy financing institution – national energy authorities, green banks and others – to be exempted from the title’s innovation requirements. 17, section 1703, opening the door to projects that incorporate already commercial technologies. , such as virtual power plants (VPPs) and aggregation of smaller projects, to be eligible for LPO loan guarantees. We expect a lot of interest from applicants in these fields.
Incorporating these changes will require the LPO to be subject to further public regulation, which was the subject of a recent Information request (RFI). (In the meantime, interested applicants should contact LPO to request a pre-application consultation by emailing [email protected]) But if you combine these changes with the volume of applications we have in Innovative Clean Energy To date, it is clear that with the BIL and IRA amendments, the Office of Lending Programs will have an outsized role to play in decarbonizing the energy sector and supply chain. clean energy supply.