|
Dear Title 17 Clean Energy Financing Program Applicant,
On May 19, 2023, the Department of Energy Loan Programs Office (LPO) released updated guidance for the Title 17 “Clean Energy Financing” loan authority. Because you are an active applicant for Title 17 financing, we are writing to provide you with direct guidance regarding your application. The status of your application has not changed as a result of LPO’s updated Title 17 guidance. Prior determinations made by LPO, including any determinations of project eligibility following a Part I application, remain the same. Applicants who have submitted a Part I or Part II application for Title 17 financing do not need to resubmit.
The updated guidance consolidates and replaces the previous Innovative Clean Energy, Advanced Nuclear, and Fossil solicitations for existing Title 17 authorities. The updated guidance reflects program updates and current Title 17 authorities, which include new authorities created by the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA). Under LPO’s updated Title 17 program structure, LPO will consider applications under four project categories that reflect current Title 17 authorities and common project types:
- Innovative Energy
- Innovative Supply Chain
- State Energy Financing Institution (SEFI)
- Energy Infrastructure Reinvestment (EIR)
The updated guidance fully describes these categories, specific eligibility requirements, and general program terms for Title 17 financing. Additional information, including the full Program Guidance and Part I and Part II Application Instructions, can be found on LPO’s website at https://www.energy.gov/lpo/clean-energy.
Updated application instructions included with the new updated guidance will take effect immediately for pending submissions. For example, an applicant who has been invited to submit a Part I application but is yet to submit it should update their application materials in line with the new instructions. Similarly, an applicant that has been invited to submit a Part II application should follow the updated Part II instructions. The updated application instructions should require minimal additions or modifications to your application.
LPO may ask for additional project information for Part I or Part II applications currently under review to meet requirements in the updated guidance. We expect these requested additions to be limited and focused, and LPO will work with you to streamline any requests. Areas for attention may include community benefits expected to result from the project, and, for applications previously received, project eligibility details for the new EIR or SEFI project categories. Please see Part I and Part II Application Instructions for required items and reach out to LPO with any questions.
Current applicants should note that the updated guidance specifies the categories of fees the Department of Energy will collect at financial closing of a Title 17 loan guarantee. Please note that the Facility Fee due at financial close as calculated in the updated guidance document applies to all applicants and represents a reduction from the Facility Fee as calculated in the solicitations. Also, the updated guidance clarifies that the applicant will be required to enter into Sponsor Payment Letters when engaging third-party advisors. More information on these elements can be found on page 37 of the guidance.
LPO stands ready to work with our applicants to make this a smooth transition while we adapt to expanded Title 17 authorities and current Department of Energy policies. We encourage you to familiarize yourself with the updated guidance and application instructions and to work directly with your lead contacts at LPO to clarify specific requirements for your application. Please do not hesitate to reach out with questions.
Sincerely,
Gretchen L. Kittel
Acting Director, Outreach and Business Development Division
You are receiving this communication from the U.S. Department of Energy's Loan Programs Office because you are a current applicant to one of its financing programs and this notice provides important information regarding your application.
DOWNLOAD PRINTABLE DOCUMENTS
|
