INTRODUCING THE TRIBAL ENERGY FINANCE PROGRAM TO TRIBAL NATIONS
Through its Tribal Energy Finance Program, the DOE Loan Programs Office (LPO) provides access to loans and loan guarantees to Indian tribes or a tribal energy development organization (TEDO) for energy development. This includes tribal energy projects that:
- Are owned by (i) a federally recognized tribe, Alaska Native Village (or Village or Regional Corporation), or an entity in which the tribe owns substantial interest or (ii) a tribal energy development organization as defined in 25 U.S. Code § 3501(12).
- Are located in the United States, within tribal land (including trust and/or non-trust land) or, subject to certain additional eligibility requirements, non-tribal land.* Projects may be located on a single site or a distributed energy portfolio.
- Are financially viable with tribal equity investment in the project.
- Are seeking direct loans from the federal government or partial guarantees of commercial loans.
- Involve the development of energy resources, products, and services that utilize commercial technology. (Innovative technology is permitted but not required. In fact, unlike other LPO programs, there is no innovation or greenhouse gases requirement.)
LEVERAGE LPO’S UNIQUE VALUE PROPOSITION
LPO was chosen to manage the Tribal Energy Finance Program because of its specialized expertise in financing the commercial deployment of energy projects. LPO works cooperatively with DOE’s Office of Indian Energy to better understand the tribal energy landscape. And even though LPO’s Tribal Energy Finance Program is one of several federal government loan programs accessible to Indian tribes and TEDOs, it is unique in the amount of financing support it can offer for large energy infrastructure projects: loans can go up to 80% of the total eligible project costs, subject to credit and underwriting review; and there are no direct application fees and minimal annual maintenance fees after the loan has been issued.
ACCESS CAPITAL THROUGH THE TRIBAL ENERGY FINANCE PROGRAM
This is a particularly opportune time for tribes seeking ways to finance their energy projects, as well as for private developers interested in partnering with tribes. As a result of the Inflation Reduction Act, the Tribal Energy Finance Program now holds $20 billion in lending authority plus $80 million to administer the program, including paying credit subsidy costs. And tribes may apply their loan toward project costs directly related to design, engineering, financing, and construction of eligible energy development projects. The Inflation Reduction Act also enabled tribes for the first time to receive direct pay for tax credits offered to certain types of energy projects.
Under the Biden Administration, LPO has expanded the staff devoted to the Tribal Energy Finance program and is working hard to improve access to the program. And as with all of its loan programs, LPO remains a partner throughout the lifetime of any tribal project loan and takes an active role in ensuring its success.
Group photo of LPO's Tribal Energy Finance Team
LEARN MORE ABOUT THE TRIBAL ENERGY FINANCE TEAM
LPO’s Tribal Energy Finance team is determined to help tribes harness all types of clean energy to enhance energy sovereignty, address climate resilience, and build stronger economies. They are actively encouraging and engaging in discussions with tribes about potential projects across the United States, including:
- Solar (with and without battery storage).
- Wind Farms (with and without battery storage).
- Microgrids and Virtual Power Plants.
- Electric Vehicle Battery Charging Stations.
- Biopower: Agriculture and Forest Waste to Synthetic Gas Power.
- Mining and Fossil Energy Production.
- Carbon Capture, Utilization, and Storage.
- Transmission and Distribution.
- Energy Resource Recycling.
The team is also intimately aware of the issues and risks faced by tribal communities. In fact, the following team members either have prior experience working with tribes or are tribal members themselves:
- Matt Ferguson, LPO Senior Advisor. For expert guidance on clean energy project financing, view Matt’s presentation for DOE’s Office of Indian Energy’s Funding Your Energy Future webinar.
- Monique La Chappa, LPO Senior Consultant (contractor). Monique is a former chairwoman for the Campo Kumeyaay Nation, which is a tribe in Southern California that has an operating 50-megawatt wind project.
- David Sickey, LPO Senior Consultant (contractor). David is a former chairman of the Coushatta Tribe of Louisiana and speaks Koasati fluently.
- Lisa Garcia, LPO Senior Consultant (contractor). Lisa’s work revolves around tribal sustainability and renewable energy projects, and she has been working in Indian country for many years as a tribal administrator.
- Robert H. Berning III (Trey), LPO Senior Consultant (contractor). Trey has worked as a Strategic Marketing Consultant for tribal governments and enterprises for the past 20-plus years. He has helped many tribes across the country develop strategic plans around profitable tribal business programs and economic development projects focused on tribal sovereignty and independence.
LET’S TALK ABOUT YOUR PROJECT
Whatever type of tribal energy project is planned, LPO can provide affordable, custom financing solutions to meet the specific needs of Indian tribes and TEDOs. LPO encourages potential applicants to engage early on projects to identify hurdles, eligibility, and viability. To learn more about how you may benefit from LPO’s Tribal Energy Finance products, visit www.energy.gov/LPO/tribal-energy, view the Tribal Energy Lending Reference Guide, email TELGP@hq.doe.gov, or call 202-586-1262.
You can also connect with members of the Tribal Energy Finance team at the Reservation Economic Summit from April 3 to 6 in Las Vegas, NV. The team will be participating in conference panels, have a booth in the government pavilion and meeting space available for one-on-one meetings.
Original source can be found here.
