The following are some of the most frequently asked questions that applicants have shared with the Loan Programs Office (LPO) about the Tribal Energy Financing Program. LPO will update this page periodically. Please contact telgp@hq.doe.gov if you would like any questions answered.
- Who is eligible for the Tribal Energy Financing Program?
- Does the Tribal Energy Financing Program provide loans or loan guarantees? What is the difference?
- What types of technologies can the Tribal Energy Financing Program support?
- What will be the term length on the loan?
- What is the required debt service coverage ratio (DSCR)?
- What is the most advantageous way to structure a deal to take advantage of tax credits? Is there a way to use the Treasury tax incentives as equity?
- What are the differences in terms and requirements for projects on and off Tribal land?
- What about a project that is not on Tribal land but will provide energy to a Tribe? Does the borrower have to be a wholly owned entity of the Tribe in that case?
- The Solicitation refers to a requirement that certain types of projects "may need to show other measurable benefits to the Tribe”. What does this mean? What are some examples of measurable benefits?
- What types of other Federal support (e.g., tax credits and financial assistance) could TEFP projects qualify for in addition to TEFP financing?
- Are there application fees?
Who is eligible for the Tribal Energy Financing Program?
The Tribal Energy Financing Program (also known as the Tribal Energy Loan Guarantee Program or TELGP) supports Tribal investment in energy-related projects by providing loan guarantees and direct loans to federally recognized Tribes, including Alaska Native villages and regional and village corporations, and Tribal Energy Development Organizations (TEDO) that are wholly or partially owned by a federally recognized Indian Tribe or Alaska Native Corporation. Multiple Tribes can form a TEDO together to apply as a borrower. The same guidelines for projects on and off Tribal lands apply for TEDOs comprised of multiple Tribes.
With respect to a potential DOE direct loan or loan guarantee to a TEDO that is partially owned by eligible Tribes, additional Project requirements can be found in Section II. on Eligibility Information in the TEFP solicitation.
Does the Tribal Energy Financing Program provide loans or loan guarantees? What is the difference?
Applicants are invited to apply for either DOE direct loans or loan guarantees through the Tribal Energy Financing Program.
- Direct Loan Program: LPO can provide a 100% guarantee of a loan on up to 80% of eligible project costs through the Federal Financing Bank (FFB). The actual debt/equity ratio will be determined based on the economics of the project and the level of debt the cash flow can support. The maximum amount of project costs that LPO can support is 80% of eligible project costs, but that will require strong cash flow available for debt service.
- The FFB provides financing to help Federal agencies manage their borrowing and lending programs and to ensure that all Federal Government borrowing from the public is conducted through the Treasury rather than program agencies.
- Guaranteed of a Third-Party Loan: DOE can provide a guarantee of a loan made by an eligible lender to an eligible borrower as well. On guarantees of third-party loans from an eligible lender, the statute that governs the program has been amended and no longer explicitly authorizes a 90% guarantee. While the solicitation does not specify a cap on partial guarantees, in general, DOE limits partial guarantees to up to 80% of the amount of the loan. However, DOE will assess on a case-by-case basis whether it will consider offering up to 90% of a loan guarantee on up to 80% of eligible project costs.
What types of technologies can the Tribal Energy Financing Program support?
DOE can support a broad range of projects and activities for the development of energy resources, products, and services that utilize commercial technology. Projects can be, but do not need to be, innovative. All projects must be demonstrated, and the TEFP program can help scale up and/or deploy.
What will be the term length on the loan?
The term can be tailored to the project needs. LPO is limited to the lesser of 30 years or 90% of the useful life of the major project components.
What is the required debt service coverage ratio (DSCR)?
The DSCR will be based on the overall risk of the project and is determined by the factors impacting the reasonable prospect of repayment of the loan. There is not one value used across LPO loans.
What is the most advantageous way to structure a deal to take advantage of tax credits? Is there a way to use the Treasury tax incentives as equity?
Please talk to your tax experts and consult the Treasury guidance regarding elective pay or “direct pay” features of certain tax credits. LPO will assess the proposed project structure but cannot structure projects for applicants. As the landscape and market are evolving with direct pay, LPO looks forward to evaluating creative financing structures that benefit Tribes.
LPO requires project sponsors to have made or to make a significant equity investment in the borrower or project. Regarding the use of tax incentives as equity, because applicants apply for direct pay incentives after a project has been constructed, the timing of the tax incentive payouts generally do not allow for applicants to use direct pay as equity. Please direct any other questions on the tax credits to a tax expert.
What are the differences in terms and requirements for projects on and off Tribal land?
| ON TRIBAL LAND | OFF TRIBAL LAND |
| BORROWER | Borrower must be a TEDO that is partially or wholly owned by a Tribe or Tribes | Borrower must be a TEDO wholly owned by a Tribe or Tribes |
| APPLICATION FEES | None | |
| ADVISOR FEES | DOE may utilize independent technical, financial, or other consultants and outside legal counsel when conducting due diligence of projects, structuring transactions, and drafting term sheets and financing documents. Upon making the determination to engage independent consultants or outside counsel with respect to an Application, DOE will continue evaluating and processing an Application only upon the Applicant, Borrower, or Project Sponsor, as appropriate, entering into an agreement satisfactory to DOE and agreeing to pay the fees and expenses of the applicable independent consultant and/or outside counsel. The degree that LPO will utilize external consultants will vary depending on the size, complexity, and risk factors of the Project and the proposed loan; the portion of the loan guaranteed by DOE; and the level of due diligence performed by the Applicant. LPO will endeavor to minimize requirements for external consultants, keep external advisor costs under TEFP to less than 1% of the loan request, and not require non-legal consultants for projects with total project costs of less than $25 million. | |
| INTEREST RATE | US Treasury Curve + 0.375% + A Risk-Based Charge, as DOE may determine as applicable. Please talk to your LPO contact to discuss further. Guidance here: Credit-Based_Interest_Rate_Spread_7.9.14.pdf (energy.gov) | |
| LOAN SIZING | Sizing is based upon the projected cash flow available to repay debt subject to statutory limits and economics of the project. Sizing may not exceed 80% of the eligible project costs. | Sizing is based upon the project cash flow flowing to a wholly owned entity of the Tribe, subject to statutory limits and economics of the project. Sizing may not exceed 80% of the eligible project costs. |
The solicitation seems to provide other paths for eligibility: “DOE may consider a Project an Eligible Project if it is substantially (but less than wholly) owned, directly or indirectly, by an Eligible Borrower if DOE determines that the measurable benefits to an Indian Tribe, whether by (x) location on Indian lands, (y) provision of energy services to Indian lands, or (z) integration with Indian energy resources, or otherwise, supports the proposed ownership structure.”
- What does “integrating energy resources” mean?
- Any project that establishes a facility (including any pipeline, gathering system, transportation system or facility, or electric transmission or distribution facility) on or near Indian land to process, refine, generate electricity from, or otherwise develop energy resources on, Indian land. See more detail here: Solicitation (p. 6-7) and in Attachment G.
- What about “otherwise”?
- If a Project will be less than wholly owned by an eligible Borrower entity, then the measurable benefits to the Tribe have to support the proposed ownership structure, as determined by DOE.
- If a Project will be less than wholly owned by an eligible Borrower entity, then the measurable benefits to the Tribe have to support the proposed ownership structure, as determined by DOE.
What about a project that is not on Tribal land but will provide energy to a Tribe? Does the borrower have to be a wholly owned entity of the Tribe in that case?
If the project is near Tribal land and providing energy services to a Tribe, the DOE team can determine that the borrower does not need to be a wholly owned entity of the Tribe. DOE will evaluate whether a primary purpose of the project is to provide energy to a Tribe. Factors such as the number of Tribal household and businesses served, jobs created, and other community impacts may be considered in that determination.
The Solicitation refers to a requirement that certain types of projects "may need to show other measurable benefits to the Tribe”. What does this mean? What are some examples of measurable benefits?
The Tribe may be asked to describe the financial and non-financial benefits gained by the Tribe in this transaction. This can be done through a meeting or writing and can include:
- Building financial and technical knowledge and capacity of the Tribal entity
- Employment
- Job training, if there are Tribal members working on the project
- Tribes increasing access to power and affordability of power
What types of other Federal support (e.g., tax credits and financial assistance) could TEFP projects qualify for in addition to TEFP financing?
Subject to limited exceptions, DOE is not permitted to issue loan guarantees or direct loans under TEFP to projects that are expected to benefit, directly or indirectly, from certain other forms of Federal support (“Federal Support Restriction”).
- Examples of such Federal support include grants; other loan guarantees or loans from Federal agencies or entities (including DOE); having Federal agencies or entities as customers or off-takers of the Project’s products or services; or other Federal contracts, including acquisitions, leases, and other arrangements that support the Project.
- Allowable Federal income tax benefits are expressly excluded from the Federal Support Restriction.
Are there application fees?
There are no application fees for the Tribal Energy Finance Program. However, as stated in the solicitation, DOE may utilize independent technical, financial, or other consultants and outside legal counsel in conducting due diligence of projects, structuring transactions, and drafting term sheets and financing documents. These third-party fees are paid directly by the applicant. Please see Section V. Fees and Expenses in the solicitation for further explanation.
This page was last updated on March 17, 2025.