Department Of Energy Releases Interim Final Rule For Energy Dominance Financing Program

On Oct. 28, the Department of Energy (DOE) Loan Programs Office (LPO) released an interim final rule amending the regulations for the Title XVII Loan Guarantee Program. This interim final rule implements the Energy Dominance Financing (EDF) provisions enacted under the One Big Beautiful Bill Act (OBBBA), signed into law on July 4. The rule takes effect immediately while inviting public comment through Dec. 29, representing a significant transformation of the program.

What is the Energy Dominance Financing Program?

The EDF Program is the rebranded and expanded successor to the Energy Infrastructure Reinvestment (EIR) Program originally created by the Inflation Reduction Act of 2022. While the EIR Program focused on projects that reduced greenhouse gas emissions and air pollutants, the EDF Program shifts the focus toward energy security, grid reliability, domestic resource development, and critical mineral supply chains.

The program authorizes the secretary of energy to guarantee loans up to a total principal amount of $250 billion through Sept. 30, 2028. The OBBBA provides $1 billion in new appropriations to cover credit subsidy and administrative. According to DOE, this rebranding reflects "the material changes to the loan program established by OBBBA, as well as the type and volume of projects DOE anticipates." The program is positioned as "a core pillar to the Administration's strategy to win the global AI race" and aims to enable projects supporting clean coal and oil and gas power generation, critical mineral supply chains, and nuclear industry revitalization.

The first deal has already been made. On Oct. 16, Energy Secretary Chris Wright announced the LPO's first deal under the EDF Program — a $1.6 billion loan guarantee for American Electric Power to overhaul approximately 5,000 miles of power lines across the Midwest. Notably, this project was initiated under the former President Biden administration's EIR Program but finalized under the new EDF framework.

Key Changes

• The definition of "energy infrastructure" has been expanded to include critical minerals. Previously limited to facilities used for generation or transmission of electric energy, or production, processing, and delivery of fossil fuels, the new definition encompasses "a facility, and associated equipment, used for enabling the identification, leasing, development, production, processing, transportation, transmission, refining, and generation needed for energy and critical minerals." This expansion opens eligibility to projects across the entire energy and critical minerals value chain.
• Eligibility criteria have shifted from a focus on emissions reduction to focusing on production capacity and reliability. The interim final rule eliminates the requirement that projects "avoid, reduce, utilize, or sequester air pollutants or anthropogenic emissions of greenhouse gases." Projects are now eligible if they: (1) retool, repower, repurpose, or replace energy infrastructure that has ceased operations; (2) enable operating energy infrastructure to increase capacity or output; or (3) support or enable the provision of known or forecastable electric supply at time intervals necessary to maintain or enhance grid reliability or other system adequacy needs.
• The community engagement requirements for applications have been removed. DOE has eliminated the application requirement for "an analysis of how the proposed project will engage with and affect associated communities." This requirement, introduced by the Inflation Reduction Act and previously estimated to require 14 hours per response from 89 annual respondents, is no longer mandatory. The rule designates this change as an "E.O. 14192 deregulatory action" under Executive Order 14192, "Unleashing Prosperity Through Deregulation."
• Electric utility pass-through requirements remain in place. Despite the removal of community engagement analysis, applications from electric utilities must still include "an assurance that Applicant will pass on the financial benefit from the Guarantee to the customers of, or associated communities served by, the electric utility."
• Credit standards and repayment requirements are unchanged. DOE emphasizes that while the class of potentially eligible projects has expanded substantially, "the criteria, rules, etc. used to determine whether a project has a 'reasonable prospect of repayment' (as determined by DOE in consultation with Treasury) has not changed." The default rate projections remain consistent with prior program operations.
• Environmental remediation eligibility continues. As under the previous EIR Program, eligible EDF Projects may "include the remediation of environmental damage associated with Energy Infrastructure."

Eligibility and Limitations

To qualify for EDF, projects must meet several core requirements:

• Location: The project must be located in the United States or a U.S. territory.
• Production and Transformation: The eligible component or infrastructure must be produced by the applicant through a process that substantially transforms materials, elements, or subcomponents into a complete and distinct product. Simple assembly or superficial modifications do not qualify.
• Trade or Business Requirement: Production and sale operations must be part of the applicant's trade or business.
• Meeting One of Three Criteria: Projects must either retool/repower/repurpose/replace ceased energy infrastructure, enable operating infrastructure to increase capacity or output, or support forecastable electric supply for grid reliability purposes.

The interim final rule makes clear that projects previously ineligible due to emissions-related requirements may now qualify under the expanded criteria. Examples of newly eligible projects include:

• Upgrades or capacity expansions at operating natural gas or coal plants to enhance reliability or extend usable life.
• Critical minerals extraction, refining, or midstream processing facilities that strengthen U.S. supply chains.
• Grid-scale storage and generation projects that ensure forecastable power delivery during peak or reliability-critical intervals.
• Upstream and midstream energy projects tied to domestic resource development.

Implementation Timeline and Next Steps

Effective Date: The interim final rule is effective immediately upon publication on Oct. 28.

Comment Period: DOE will accept comments, data, and information regarding this interim final rule until Dec. 29. Interested parties may submit comments through the Federal eRulemaking Portal (www.regulations.gov), email (LPO.IFR@hq.doe.gov), postal mail, or hand delivery to the DOE LPO.

Loan Authority Expiration: The $250 billion in loan guarantee authority under Section 1706 expires on Sept. 30, 2028. DOE has emphasized the need to move quickly to process applications and issue loan guarantees before this deadline.

Treatment of Existing Applications: DOE confirms that provisions of the loan guarantee regulations not amended by OBBBA remain in full force and effect. This allows DOE to continue processing existing applications already in the pipeline under prior Section 1706 guidance while expanding eligibility for new applicants under the updated framework.