United States: DOE Loan Program Issues New Tribal Energy Solicitation With Key Improvements

Taite R McDonald is a Partner in our Washington DC office.

Tara S Kaushik is a Partner in our San Francisco office.

Stephen R Bolotin is a Public Affaris Advisor in our Washington DC office.


  • The U.S. Department of Energy (DOE) has opened the doors of its much anticipated Tribal Energy Loan Guarantee Program (TELGP), which can guarantee up to $2 billion in loans to support economic opportunities for American Indian tribes via energy development projects.
  • This is the first time the DOE Loan Programs Office (LPO) has been extended loan guarantees to projects on tribal lands and is doing so at significantly reduced fees and rates than the other Title XVII solicitations.
  • Given the complexity of the DOE LPO and the recent inclusion of the TELGP, applicants are strongly encouraged to carefully evaluate the solicitation and structure proposed projects in a manner that aligns with the LPO's rules and successful projects to date, which is key for efficiently and effectively navigating the program.

The U.S. Department of Energy (DOE) has opened the doors of its much anticipated Tribal Energy Loan Guarantee Program (TELGP), which can guarantee up to $2 billion in loans to support economic opportunities for American Indian tribes via energy development projects. Since the beginning of 2018, the DOE has been actively engaging tribal stakeholders as it finalized the details of the program; TELGP was only recently funded under the Fiscal Year 2017 Omnibus Spending Bill. The TELGP is administered by the DOE's Loan Programs Office (LPO) – which also runs the Advanced Technology Vehicle Manufacturing Program (ATVM) and the Title XVII Program for Innovative Energy Technologies – in consultation with the Office of Indian Energy Policy and Programs (IE). This is the first time the LPO has been extended loan guarantees to projects on tribal lands and is doing so at significantly reduced fees and rates than the other Title XVII solicitations.

Program Overview

Under this solicitation, the DOE can guarantee up to 90 percent of the unpaid principal and interest due on any loan made to a federally recognized tribe. The program requires the tribal borrower to invest equity in the project and that all project debt is provided by nonfederal lenders. A total of $8.5 million has been appropriated by Congress to cover the Credit Subsidy Costs (CSCs)1 associated with these loan guarantees. The application fees are $10,000 for the Part I application, and $25,000 for the Part II application. The loans can be for a broad range of energy projects with a focus on commercially proven technologies, including:

  • electricity generation, transmission and/or distribution facilities, utilizing renewable or conventional energy sources
  • energy storage facilities, whether integrated with any of the above
  • energy resource extraction, refining or processing facilities
  • energy transportation facilities, including pipelines
  • district heating and cooling facilities
  • cogeneration facilities
  • distributed energy project portfolios, including portfolios of smaller distributed generation and storage facilities employed pursuant to a unified business plan

Uniquely, the TELGP is structured to have the flexibility to finance a wide variety of projects structures and types including: generation projects serving both nontribal customers and residents of Indian lands, wherever constructed; transmission projects facilitating the sale of electricity generated on Indian land to outside markets; transmission projects across Indian lands, connecting outside generation to outside markets, where no tribal customers are served; and projects in which a tribal borrower participates as an investor, but bears no other direct relationship to the tribe or Indian lands. In cases where projects are not located on tribal land, applicants are strongly encouraged to outline in their applications how the project measurably benefits one or more tribes. The refinancing of energy development projects that have already completed construction are not eligible under TELGP. However, the DOE may issue loan guarantees for the financing of substantial improvement or modification to existing facilities.

Unlike other LPO loan guarantee programs, the tribal program is structured to be a partnership between eligible lenders and the DOE, similar to the DOE's Financial Institution Partnership Program (FIPP). Eligible lenders include commercial banks or other nonfederal lenders with suitable experience and capabilities. A tribe seeking financing would apply to an eligible lender, which in turn would apply to the DOE for the partial guarantee. TELGP program also allows for projects to be partially owned by nontribal participants.

Application Process and Submission Schedule

Like other LPO solicitations, the TELGP is a two-part application process. The Part I application aims to determine an applicant's eligibility and project's readiness to proceed. Upon positive determination, qualified applicants are invited to submit a Part II application, which contains the necessary technical and financial information for the DOE LPO to conduct extensive project due diligence and undertake term sheet negotiations. From start to finish, the application process will likely extend approximately six to 18 months, depending upon the project's complexity, the level of National Environmental Policy Act (NEPA) review required by DOE, and the applicant's need to raise additional equity.

Upcoming Part I due dates:

  • Round 1 – Sept. 19, 2018
  • Round 2 – Nov. 14, 2018
  • Round 3 – Jan. 16, 2019
  • Round 4 – March 13, 2019
  • Round 5 – May 15, 2019
  • Round 6 – July 17, 2019
  • Round 7 – Sept. 18, 2019
  • Round 8 – Nov. 1, 2019

Upcoming Part II due dates:

  • Round 1 – Oct. 17, 2018
  • Round 2 – Dec. 19, 2018
  • Round 3 – Feb. 13, 2019
  • Round 4 – April 17, 2019
  • Round 5 – June 19, 2019
  • Round 6 – Aug. 14, 2019
  • Round 7 – Oct. 16, 2019
  • Round 8 – Nov. 30, 2019

Future submission rounds will be announced by supplemental solicitation announcements.

Key Takeaways

TELGP provides a unique opportunity for tribal projects to receive low-cost financing – a considerable barrier for many tribal projects, which often run into difficulties with attracting the capital needed to develop projects in remote areas. Given the complexity of the DOE LPO and the recent inclusion of the TELGP, applicants are strongly encouraged to carefully evaluate the solicitation and structure proposed projects in a manner that aligns with the LPO's rules and successful projects to date, which is key for efficiently and effectively navigating the program. Holland & Knight's energy advisors and attorneys have deep experiencing navigating the DOE LPO and guiding clients through all aspects of the project from application through due diligence and beyond. In addition to the eligibility factors outlined on the TELGP website and related solicitation documents, there are broad policy factors (such as U.S. grid resiliency) and process factors (such as receiving clearances from the White House Office of Management and Budget) that can determine the ultimate fate of a loan application. Holland & Knight's energy advisors can provide application teams with templates and strategic review sessions to facilitate the drafting efforts, which can be extensive. Finally, Holland & Knight's Native American Law Group and the Energy Team can provide other legal services related to establishing joint ventures with American Indian tribes, project development and siting projects on tribal lands.


1 The Credit Subsidy Cost is the net present value of the estimated long-term cost to the U.S. government of a loan guarantee, as determined under the applicable provisions of the Federal Credit Reform Act of 1990. In other words, it is the "premium" paid to the government in return for its guarantee.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions