The Loan Programs Office’s (LPO) FY 2023 Budget Request, released this week, comes at a time of increased applicant interest in LPO as the nation’s largest source of financing for early-stage innovative energy technologies, with over $70 billion in active applications as of March 2022. In its Title 17 Innovative Technology Loan Guarantee Program (Title 17), LPO expects to obligate approximately $6 billion in loans in FY 2022 and $4.5 billion in FY 2023 to new and innovative clean energy deployment and supply chain projects. In Advanced Technology Vehicles Manufacturing Loan Program (ATVM), LPO expects to obligate approximately $5 billion in loans in FY 2022 and $13 billion in FY 2023 across various advanced technology vehicle and component projects. To support this growth, the FY 2023 Budget builds on LPO efforts to originate new deals across its portfolio of innovative clean energy and supply chain technologies.
In Title 17, the Budget supports LPO efforts to provide access to capital for a range of eligible high-impact and large-scale energy infrastructure projects and first-time commercial deployments in the U.S. The FY 2023 Budget requests $150 million for credit subsidy costs to support an additional $5 billion of loan guarantee authority and supports an increase in administrative expense appropriations to support originating and monitoring a growing portfolio.
In ATVM, the FY 2023 Request continues to support access to capital to revitalize and retool U.S. automotive manufacturing to compete globally, including in EVs and in securing advanced technology vehicle domestic supply chains from raw materials to parts. This includes providing increased administrative expenses appropriations for originating and monitoring new ATVM loans.
The FY 2023 Budget also aims to unlock the Bipartisan Infrastructure Law’s expanded authorities to allow ATVM to utilize existing loan authority to support advanced medium- and heavy-duty vehicles, locomotives, maritime vessels, aircraft, and hyperloop technologies for the first time. The Request also aims to allow LPO to utilize existing loan authority to leverage Title 17 authorities expanded under the Bipartisan Infrastructure Law to support domestic critical mineral supply chain projects and projects backed by state energy financing institutions, including Green Banks or state energy authorities.
Finally, the Budget Request supports the Tribal Energy Loan Guarantee Program (TELGP) in invigorating economic opportunities in tribal communities through the development of energy projects. The Request builds on momentum from new direct loan authority provided by Congress under Consolidated Appropriations Act, 2022, and supports administrative expenses that allow LPO to continue utilizing the $2 billion loan authority Congress previously provided for the program.
Across its loan programs, LPO’s FY 2023 Request will allow it to support its growing portfolio effectively while also stewarding the taxpayer’s dollar dutifully, playing a key part in the Biden Administration’s efforts to achieve a net-zero emissions economy, support and provide clean energy benefits to underserved and overburdened communities, and support the manufacture and deployment of clean energy technologies nationwide.
Original source can be found here.
