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DOE Loan Programs Office State Energy Finance Institution Program

Background

The Department of Energy’s (DOE) Loan Programs Office (LPO) finances large-scale energy infrastructure projects across the U.S. Through Title 17 Innovative Clean Energy Loan Guarantee Program (Title 17), DOE LPO provides loan guarantees for Innovative Clean Energy Projects, including through the designation of a State Energy Finance Institution (SEFI) to fund specific projects. A SEFI is a quasi-independent entity or an entity within a state agency or financing authority established by a state to satisfy two broad functions:
  1. Provide financing support or credit enhancements for clean energy projects, and
  2. Create liquid markets for eligible projects or take other steps to reduce financial barriers to the deployment of existing and new eligible projects.

SEFI projects are those exempt from the innovative technology requirement of Title 17, if they meet the below project requirements:

  • Receive qualifying funding from a SEFI, and:
  • Fall into one of the categories of eligible SEFI-supported projects:
    • Renewable energy systems
    • Advanced fossil energy technology
    • Hydrogen fuel cell technology
    • Carbon capture and sequestration technologies
    • Efficient electrical generation, transmission, and distribution
    • Efficient end-use energy technologies
    • Production facilities for the manufacture of fuel-efficient vehicles or parts of those vehicles
    • Pollution control equipment
    • Oil refineries
    • Energy storage technology
    • Industrial decarbonization technologies
    • Supply of critical minerals
Several state departments, including the Michigan Department of Environment, Great Lakes, and Energy (EGLE) through the Office of Climate and Energy, are assessing the need for a SEFI that would unlock federal loans and loan guarantees not otherwise available. The financing would support public and private clean energy and emissions-reducing projects and clean energy businesses in the state. Input on projects that span more than one community or beyond Michigan boundaries are also welcome. These dollars will align with the implementation of the MI Healthy Climate Plan and the recent clean energy legislation signed by Governor Gretchen Whitmer.