The approach accommodates utility plans that include multiple individual project sites, including individual project components that may be technologically diverse, geographically varied, and at different stages of the planning and execution process.
December 13, 2024
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The Title 17 Energy Infrastructure Reinvestment (EIR) Program utilizes a flexible loan facility and disbursement approach tailored for regulated, investment-grade utility borrowers. This approach accommodates utility infrastructure plans that include multiple individual project sites, including individual project components that may be technologically diverse, geographically varied, and at different stages of the utility planning and execution process.
Prior to conditional commitment, LPO works with the utility borrower to scope a defined project consisting of these potential eligible individual project components and to determine an appropriate loan amount when underwriting the deal. The loan amount reflects the maximum amount the utility may borrow, but in order to draw down the LPO financing, the borrower must submit information and invoices at the individual project component level for validation and reimbursement.
Under the loan guarantee agreement, before an individual project component may be included in the loan facility, the regulated utility must demonstrate that the individual project meets the individual project eligibility criteria set forth in the loan guarantee agreement (including the statutory EIR requirements), has been approved by the utility regulators for cost recovery in customer rates, and complies with National Environmental Policy Act (NEPA) requirements. Once these requirements are satisfied, DOE can advance funds for approved individual project components to the borrower, and moving forward the borrower may submit additional eligible individual project costs quarterly for financing through the facility, up to the total amount of the loan.
The borrower can submit new individual project components for LPO’s financing consideration under the facility through September 15, 2031, or when the maximum loan amount has been reached – whichever occurs first.