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  • DOE Amends Loan Guarantee Regulations to Implement Energy Dominance Financing Under OBBBA

DOE Amends Loan Guarantee Regulations to Implement Energy Dominance Financing Under OBBBA

  • By: Learn Laws®
  • Published: 10/28/2025
  • Updated: 10/28/2025

The Department of Energy (DOE) issued an interim final rule on October 28, 2025, amending 10 CFR Part 609 to incorporate the Energy Dominance Financing provisions of the One Big Beautiful Bill Act (OBBBA), signed into law by President Trump on July 4, 2025. This regulatory action expands the scope of eligible projects under the Title XVII loan guarantee program, administered by DOE's Loan Programs Office (LPO). Effective immediately, the rule authorizes loan guarantees up to a total principal amount of $250 billion through September 30, 2028, for initiatives that enhance energy production, critical minerals development, and grid reliability. The amendments reflect congressional directives to broaden project criteria, eliminate certain environmental and community-related requirements, and rebrand the program from Energy Infrastructure Reinvestment (EIR) to Energy Dominance Financing (EDF). This development marks a significant shift in federal energy financing, prioritizing expanded capacity and resource dominance amid evolving policy priorities.

Background on Title XVII and Recent Legislative Changes

Title XVII of the Energy Policy Act of 2005 empowers the Secretary of Energy to issue loan guarantees for innovative energy projects and infrastructure reinvestments. DOE's regulations at 10 CFR Part 609 have governed this program since 2007, with amendments in response to laws like the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA). The IRA, enacted in 2022, introduced Section 1706, which focused on retooling or repurposing ceased energy infrastructure with an emphasis on reducing emissions.

OBBBA, formally Public Law 119-21, amends Section 1706 to emphasize 'energy dominance' by expanding eligible activities. As detailed in the Federal Register notice (Volume 90, Number 206, pages 48705-48710), the act increases the program's commitment authority to $250 billion and removes prior mandates related to greenhouse gas sequestration and community impact analyses. DOE attributes these changes to statutory requirements, noting the need for swift implementation to meet the program's expiration timeline. Key players include DOE's LPO, led by figures such as Program Officer Chelsea Sexton and Attorney-Advisor Uchechukwu 'Emeka' Eze, who are listed as contacts for further information.

Relevant precedents include prior amendments to Part 609, such as the 2023 updates implementing IRA provisions (88 FR 34419), which established EIR projects. OBBBA builds on this framework but shifts focus away from emissions controls, aligning with broader policy goals of enhancing domestic energy production and critical minerals supply chains.

Key Amendments to Definitions and Eligibility Criteria

The interim final rule revises critical definitions in Section 609.2. 'Energy Infrastructure' is now defined as '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 expands from the prior focus on electric energy and fossil fuels, incorporating critical minerals essential for technologies like batteries and renewables.

Section 609.3 updates eligible EDF projects to include those that: retool, repower, repurpose, or replace ceased energy infrastructure; enable operating infrastructure to increase capacity or output; or support provision of electric supply for grid reliability. Notably, the rule eliminates previous requirements for projects to 'avoid, reduce, utilize, or sequester air pollutants or anthropogenic emissions of greenhouse gases,' as directed by OBBBA. It also retains provisions for environmental remediation associated with energy infrastructure.

In Section 609.5, the rule removes the mandate for applications to include an analysis of community engagement and impacts, a requirement introduced by the IRA. However, electric utility applicants must still assure that guarantee benefits pass to customers or served communities. These changes, as explained in the notice's section-by-section analysis, aim to streamline applications and broaden project appeal.

Procedural and Implementation Details

DOE justifies the interim final rule under the Administrative Procedure Act's exemption for loan-related matters (5 U.S.C. 553(a)(2)), allowing immediate effectiveness without prior notice. Nonetheless, a 60-day comment period runs until December 29, 2025, via regulations.gov or other channels. The notice addresses procedural requirements, determining no need for environmental impact statements under NEPA or regulatory flexibility analyses, as the rule is administrative and aligns with statutory changes.

The rule is deemed a 'deregulatory action' under Executive Order 14192, attributed to President Trump, for eliminating the community analysis burden—previously estimated at 14 hours per response for 89 annual applicants (88 FR 34426). It also confirms compliance with executive orders on regulatory review, federalism, and energy effects, with no significant adverse impacts anticipated.

Perspectives vary: proponents, including industry stakeholders, may view the expansions as vital for energy security and economic growth, while critics could argue the removal of emissions and community safeguards prioritizes production over sustainability. DOE maintains neutrality, emphasizing statutory fidelity.

Potential Implications and Perspectives

Short-term implications include accelerated application processing for a wider array of projects, potentially boosting investments in fossil fuels, nuclear, and critical minerals amid global supply chain concerns. Long-term, the $250 billion authority could reshape energy markets, fostering domestic dominance but raising questions about fiscal risks, given historical program defaults like Solyndra.

Different viewpoints emerge from official statements: DOE highlights the need for timely implementation to utilize commitment authority before 2028. Environmental groups might express concern over diminished emissions controls, citing precedents like the Paris Agreement withdrawal. Industry representatives, conversely, could praise the flexibility for grid reliability projects, aligning with reliability standards from bodies like the North American Electric Reliability Corporation (NERC).

The rule's forward-looking aspects include potential final rule adjustments based on comments, influencing future solicitations and project evaluations.

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