IRA Section 50141 – Funding for DOE Loans Programs Office for Energy Efficient Projects

Section 50141 of the IRA authorizes the Secretary of Energy to make commitments to guarantee loans for eligible projects under section 1703 of the Energy Policy Act of 2005, up to a total principal amount of $40 billion. Section 50141 also appropriates $3.6 billion to the Department of Energy for the costs of guarantees made under section 1703 of the Energy Policy Act of 2005.

Section 1703 of the Energy Policy Act of 2005 authorizes DOE to guarantee loans for eligible projects that:

1) avoid, reduce, utilize, or sequester air pollutants or anthropogenic emissions of greenhouse gases; and
2) employ new or significantly improved technologies as compared to commercial technologies in service in the U.S. at the time the guarantee is issued, including projects that employ elements of commercial technologies in combination with new or significantly improved technologies.

Section 1703 of the Energy Policy Act of 2005 lists various categories of eligible projects, including renewable energy systems, pollution control equipment, and efficient electrical generation, transmission, and distribution technologies, among others. Before DOE may guarantee loans for eligible projects using funds made available under section 50141 of the IRA, the President must first certify in writing that the loan guarantee and project comply with the requirements of the section. None of the amounts made available under section 50141 of the IRA may be used to guarantee loans for projects using funds, personnel, or property provided by any Federal agency. DOE must not use more than 3% of available funds for administrative expenses necessary to carry out Title XVII of the Energy Policy Act of 2005 and section 1702(h)(3) thereof, which authorizes the Secretary of Energy to reduce the amount of fees collected on a loan guarantee. Ordinarily, fees must be set at a level sufficient to cover applicable administrative expenses but, under section 1702(h)(3), the Secretary of Energy may reduce fees “subject to the availability of appropriations.”

The funds appropriated under section 50141 shall remain available until September 30, 2026.