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The Inflation Reduction Act (IRA) has added new categories of eligible projects to the U.S. Department of Energy (DOE) Loan Programs Office’s program authorized by Title XVII of the Energy Policy Act of 2005, as amended (42 U.S.C. 16511 et seq.). This requires immediate and material changes to DOE’s existing regulations (10 CFR part 609) implementing the Title XVII program for DOE to be able to accept applications and issue loan guarantees for those categories of projects. The loan authority and appropriations authorized under the IRA are available through September 30, 2026, making the implementation of the authority time-sensitive. The rule would also include changes to the existing regulations based on experience gained implementing the Title XVII loan guarantee program and to reflect amendments to Title XVII enacted by the Energy Policy Act of 2020 and the Infrastructure Investment and Jobs Act of 2021.

Statement of Need:

The existing regulations governing Title XVII do not contemplate certain categories of projects and terms applicable to Title XVII, as amended by recent legislation. As such, DOE must revise its regulations in order to effectuate the new categories of eligible projects and terms.

Summary of the Legal Basis:

Title XVII of the Energy Policy Act of 2005, Public Law 109-58 (42 U.S.C. 16511 et seq.) established a program for the Department of Energy to guarantee loans for innovative projects that avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse gases. Title XVII has since been amended, including most recently under the Consolidated Appropriations Act of 2021 (Energy Act of 2020), Public Law 116-260, the Infrastructure Investment and Jobs Act of 2021, Public Law 117-158 (IIJA), and the Inflation Reduction Act of 2022, Public Law 117-169 (IRA).

Alternatives:

This rulemaking seeks to codify recent legislative changes to the Title XVII program and make changes to DOE’s regulations to improve implementation of the program. DOE recently solicited input from stakeholders to understand how it could improve the Title XVII program.

Anticipated Costs and Benefits:

The Title XVII rule sets forth the policies and procedures DOE uses for the application process, which includes receiving, evaluating, and approving loan guarantees to support eligible projects under Title XVII. While the rule itself will not have a direct economic impact, it will enable DOE’s use of nearly $300 billion of additional loan authority provided under the IIJA and IRA.