TRIBAL ENERGY FINANCING

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Introduction to Tribal Energy Financing
Loan Programs Office

Interested in applying?

LPO supports Tribal investment in energy-related projects by providing direct loans or partial loan guarantees to federally recognized tribe, including Alaska Native village or regional or village corporations; or a Tribal Energy Development Organization (TEDO) that is wholly or substantially owned by a federally recognized Indian tribe or Alaska Native Corporation. 

See below for:

To learn more about how DOE is working closely with Tribal governments and nongovernmental partners to navigate, access, and utilize funding opportunities, download the Tribal Nations and Native Communities Guide.

APPLICATION PROCESS

HOW TO APPLY

Interested applicants are encouraged to: 

1. Read the solicitation in its entirety. The Tribal Energy Lending Reference Guide provides a high-level overview for convenience.

2. Engage with DOE’s Outreach and Business Development Division to share project details and engage in pre-application dialogue by emailing [email protected] or by phone at 202-586-1262.

ELIGIBLE BORROWERS

DOE's Tribal energy financing is available to eligible Indian Tribes or entities, including Alaska Native village or regional or village corporations, or other financial institutions or tribes meeting certain criteria established by DOE, that are able to demonstrate being eligible for the special programs and services provided by the United States to Indians because of their status as Indians, or their wholly-owned entities with appropriate legal authority. In addition, a Tribal Energy Development Organization (TEDO) that is wholly or substantially owned by a federally recognized tribe is eligible. 

Please read the solicitation for further information about eligible borrowers. 

ELIGIBLE LENDERS

For partial loan guarantees, an eligible lender would be a federally regulated commercial bank, other financial institution or a tribe satisfying requirements established by DOE, that is able to demonstrate experience and capability to evaluate, underwrite, and negotiate energy development loans, similar to the proposed loan with its Tribal customers, and should only apply for a guarantee if the proposed loan satisfies its own requirements. Please read the solicitation for further information about eligible lenders. 

ELIGIBLE PROJECTS

DOE can support a broad range of projects and activities for the development of energy resources, products, and services that utilize commercial technology (innovative technology is permitted but not required). 

The following non-exclusive list of potential types of Eligible Projects is provided for illustrative purposes only:

  • Electricity generation, transmission and/or distribution facilities, utilizing renewable or conventional energy sources
  • Energy storage facilities, whether or not 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

Please read the solicitation for more information about eligible projects. Projects utilizing innovative technologies may wish to consider LPO's Title 17 Innovative Clean Energy Loan Guarantee Program.

APPLICATION EVALUATION PROCESS

DOE will evaluate applications in a two phases. In Part I, LPO will review the project to determine eligibility and readiness to proceed. In Part II, LPO will review the project to evaluate reasonable prospect of repayment. Following a favorable determination based on this two-phase review, DOE will commence due diligence, structuring, negotiation, credit approval, documentation and closing processes that are similar to those of commercial lenders. Transaction execution timing is affected by completeness of application materials, sponsor’s readiness to proceed, responsiveness to information requests and negotiating efficiency.

The Tribal Energy Lending Reference Guide provides a high-level overview for convenience. Please read the solicitation for further information about the evaluation process. 

TRIBAL RESILIENCY INITIATIVE

The Department of Energy’s (DOE’s) Loan Programs Office (LPO) recently announced its first conditional commitment under the Tribal Energy Financing Program (TEFP) for a loan guarantee of up to $72.8 million for the development of a solar-plus-long-duration energy storage microgrid on the Tribal lands of the Viejas Band of the Kumeyaay Indians near Alpine, California. The Viejas Microgrid project will provide the Viejas Band with reliable utility-scale renewable energy generation and storage infrastructure through the installation of a 15 MW photovoltaic solar generation system and a 38 MWh battery long-duration energy storage system. The project developer, Indian Energy, is a 100% Native American owned energy development firm. The borrower, IE VEM Managing Member LLC, is a Tribal energy development organization (TEDO) owned by Indian Energy.

To encourage the development of more projects like the Viejas Microgrid, LPO has created a specialized outreach initiative for Tribes to leverage TEFP financing for solar-plus-storage and microgrid projects. LPO has decades of technical, financial, and legal experience in financing solar and storage projects. In light of President Biden’s Executive Order on reducing barriers for Tribes to accessing federal programs, LPO is excited to bring this expertise to Tribes looking to decarbonize their high-load facilities.  

Learn more at www.energy.gov/LPO/tribalresiliency

TRIBAL OUTREACH EFFORTS

LPO has worked in close collaboration with the Department's Office of Indian Energy Policy and Programs (IE) in designing its Tribal energy financing products and reaching out to Tribal members. This included emailing Tribal leaders to solicit feedback about the proposed program design. Since early 2018, DOE staff has participated in one-on-one meetings with Tribal leaders as well as participating annually at the Reservation Economic Summit, NAFOA's Annual Conference and Fall Finance & Tribal Economies Conference, ICEIWG meetings, and National Tribal Energy Summits. 

In May 2021, LPO Director Jigar Shah and IE Director Wahleah Johns participated in an online listening session to discuss funding and financing of Tribal energy projects, which followed a Tribal consultation on April 9 with Secretary Granholm and DOE leaders from across the Department. IE has published a summary of the roundtable, as well as a complete list of questions and DOE's responses.  

LPO will continue to solicit feedback and may make adjustments to the program as appropriate to better serve Tribes' needs, consistent with DOE's authority. 

 

OTHER FUNDING OPPORTUNITIES

To learn more about other funding opportunities, visit DOE's Office of Clean Energy Demonstrations (OCED). OCED manages more than $25 billion in funding to deliver clean energy demonstration projects at scale in partnership with the private sector to accelerate deployment, market adoption, and the equitable transition to a decarbonized energy system. 

 

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