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Energy Infrastructure Reinvestment
April 2024
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This quarterly newsletter from the U.S. Department of Energy's Loan Programs Office (LPO) will include key updates, upcoming events and webinars, news, and resources for potential applicants and other stakeholders related to Energy Infrastructure Reinvestment (EIR) eligible projects. You are receiving this email because you have engaged with LPO regarding EIR or have expressed interest in EIR. You can manage your subscription or if you have been forwarded this email, you can sign up here.
Updates
First Conditional Commitment for an EIR Project
On March 27, LPO announced a conditional commitment of up to $1.52 billion for a loan guarantee to Holtec Palisades, LLC (Holtec Palisades) to finance the restoration and resumption of service of an 800-MW electric nuclear generating station in Covert Township, Michigan. The project aims to bring back online the Palisades Nuclear Plant, which ceased operations in May 2022, and upgrade it to produce baseload clean power until at least 2051, subject to U.S. Nuclear Regulatory Commission (NRC) licensing approvals.
Holtec Palisades is the first project to be offered a conditional commitment through the EIR program under Title 17 Clean Energy Financing Section 1706, first authorized and appropriated by President Biden’s Inflation Reduction Act. This project will repower existing energy infrastructure that has been nonoperational and support reinvestment in the community, underscoring the Biden-Harris Administration’s deep commitment to ensuring no community is left behind as we build America’s clean energy future.
If finalized, Holtec Palisades will be the first recommissioning of a shut-down nuclear power plant in the United States—reinforcing America’s status as a global energy leader while also driving critical investments in energy communities to support their economic revitalization, strengthen domestic supply chains, and help workers benefit from the growing clean energy economy.
Read more about the project
 Project News
Energy Secretary Jennifer Granholm Announces Federal Funding for Palisades Nuclear Plant (Source: WMMT)
NABTU Applauds the Announcement of Palisades Nuclear Plant Conditional Commitment (Source: North American Building Trades Union)
Michigan Nuclear Plant Aims to be First Ever to Reopen in US (Source: Canary Media)
How to Reopen a Nuclear Plant (Source: MIT Tech Review)
Growing Momentum in LPO's Pipeline
The Holtec Palisades conditional commitment was one of five announced by LPO in the first quarter of 2024 across all of its programs. And more announcements are expected with more than 200 active applications requesting more than $260 billion in financing, which includes a number of EIR projects.
While restarting a nuclear power plant is one potential use for EIR financing, there are a number of projects engaging with the EIR Outreach Team that include large power generation projects, distributed energy projects, and grid-related projects. Some applicants are looking at singular projects, like Holtec Palisades, while others are considering a portfolio of connected projects.
With up to $250 billion in loan guarantee authority for energy infrastructure-related projects provided by the Inflation Reduction Act that is available through Fiscal Year 2026, now is the time to engage with the EIR Outreach Team for a pre-application consultation.
Resources for Energy Communities
The EIR loan authority can support projects in energy communities, where old fossil energy infrastructure can be reinvested in to create jobs in clean energy and community benefits. DOE and other federal agencies provide many resources to support energy communities in their path to economic redevelopment, from information for new projects, to guidance on accessing federal grants and tax benefits for communities. The Interagency Working Group on Coal & Power Plant Communities & Economic Revitalization (IWG) serves as an organizing hub and clearinghouse for these opportunities. Additional resources include:
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