As we enter Fiscal Year 2025, LPO is updating reporting on loan and loan guarantee authority available under the Energy Infrastructure Reinvestment program based on project activity, applicant interest to date, and anticipated applications.
November 12, 2024
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Since July 2023, LPO has reported on statutory and estimated available loan and loan guarantee authority across its programs in its Monthly Application Activity Report (MAAR) to provide all stakeholders clarity on LPO’s ability to finance potential projects. Publishing the MAAR is one way LPO prioritizes transparency as part of its operations and provides stakeholders more information about applicant interest in its loan programs.
As we enter Fiscal Year 2025, LPO is updating reporting on loan and loan guarantee authority available based on project activity, applicant interest to date, and anticipated applications.
In particular, LPO is updating methodology for reporting on loan guarantee authority available under the Energy Infrastructure Reinvestment (EIR or Section 1706) program. Since closing its first EIR loan guarantees and as the program continues to evaluate potential loan applications for this program, LPO has gained a better understanding of potential applicants and the risk profiles of potential projects under the program.
Specifically, for most utility applicants to the EIR program, it is anticipated that potential projects may include large, technologically diverse, and long-term project scopes based on the utility’s public utility commission approved capital investment plans. As a result, 1706 utility loans may reflect a relatively moderate risk profile in comparison to typical projects LPO finances with higher project risk. Therefore, less credit subsidy may be required for such projects, allowing LPO to potentially finance more projects.
Accordingly, LPO is revising its reported loan guarantee authority under EIR to now reflect the statutory maximum loan guarantee authority, less amounts obligated for Section 1706 projects to date.
LPO's October 2024 MAAR is the first to use the statutory maximum loan guarantee authority less amounts obligated to date in order to estimate EIR's remaining authority. Click here to download a high-res version of this graphic.
LPO’s Advanced Technology Vehicles Manufacturing (ATVM) program and Carbon Dioxide Transportation Infrastructure Finance (CIFIA) program do not have a statutory cap on loan authority. Therefore, LPO is continuing to represent ATVM and CIFIA program loan authority as estimates based on credit subsidy and project pipeline. Read more about the relationship between appropriated credit subsidy and loan authority here.
Along with these changes, LPO expects to report on estimated remaining loan authority and loan guarantee authority annually at the Federal Fiscal Year (October 1).
Jigar Shah
Former Director, Loan Programs Office
Jigar Shah served as Director of the Loan Programs Office (LPO) at the U.S. Department of Energy (DOE) from March 2021 to January 2025. He led and directed LPO’s loan authority to support deployment of innovative clean energy, advanced transportation, and Tribal energy projects in the United States. Prior, Shah was co-founder and President at Generate Capital, where he focused on helping entrepreneurs accelerate decarbonization solutions through the use of low-cost infrastructure-as-a service financing. Prior to Generate Capital, Shah founded SunEdison, a company that pioneered “pay as you save” solar financing. After SunEdison, Shah served as the founding CEO of the Carbon War Room, a global non-profit founded by Sir Richard Branson and Virgin Unite to help entrepreneurs address climate change.
Shah was also featured in TIME's list of the "100 Most Influential People" in 2024.
Originally from Illinois, Shah holds a B.S. from the University of Illinois-UC and an MBA from the University of Maryland College Park.