DOE Title 17 Clean Energy Financing Program

Catalyzing large-scale decarbonization

The Department of Energy’s (DOE) Title 17 Clean Energy Financing Program—administered by the Loan Programs Office (LPO)—provides federal loan guarantees to accelerate deployment of innovative clean energy, advanced transportation, and decarbonization projects. Backed by more than $300 billion in loan authority expanded by the Inflation Reduction Act, Title 17 supports commercial-scale facilities that avoid, reduce, or sequester greenhouse gas emissions. Eligible sectors range from renewable generation, grid modernization, and energy storage to industrial decarbonization, critical minerals processing, advanced nuclear, hydrogen, sustainable fuels, and carbon capture projects. By offering long-tenor, flexible financing with competitive rates, LPO bridges gaps in private capital markets, enabling first-of-a-kind projects to scale and de-risk future investment.

Unlike grants, Title 17 requires repayment. Applicants must demonstrate robust project economics, experienced teams, environmental compliance, and community engagement. The process involves a two-part application (Part I and Part II) followed by rigorous due diligence, term sheet negotiation, and conditional commitment. This guide walks through strategic planning, application preparation, diligence expectations, and post-closing obligations to help innovators navigate the program and unlock transformational capital.

Program fundamentals

Strategic planning and readiness assessment

Before approaching LPO, conduct a candid readiness evaluation:

• Technology qualification. Title 17 supports projects using new or significantly improved technology compared to commercial technologies in the U.S. Document performance data, pilot results, patents, and third-party validations showing innovation.
• Emissions impact. Quantify greenhouse gas reductions compared with baseline scenarios. Provide lifecycle analyses, engineering studies, or independent assessments.
• Project maturity. Secure site control, key permits, offtake agreements, interconnection studies, feedstock contracts, and EPC relationships. LPO expects projects to be within 12–24 months of construction start.
• Financial strength. Prepare detailed financial models, capital stacks, and sensitivity analyses. Identify equity sources covering at least 20% of project costs.
• Team capacity. Assemble experienced leadership, EPC contractors, O&M providers, and advisors (legal, technical, environmental, community engagement).

Develop a comprehensive data room containing technical reports, market studies, environmental documentation, community agreements, and financing plans. Strong preparation shortens review timelines.

Part I application: Establishing eligibility

Part I focuses on eligibility and high-level project viability. Applicants submit through the LPO portal with a $50,000 fee (may be waived for certain categories). Components include:

• Project summary. Technology description, location, capacity, and innovative aspects.
• Eligibility narrative. Demonstrate how the project meets statutory criteria: innovative technology, emissions reduction, U.S. location.
• Preliminary technical and financial data. High-level CAPEX/OPEX estimates, projected revenues, and development status.
• Environmental and community considerations. Outline permitting status, NEPA triggers, community benefits plan, workforce strategy, and environmental justice engagement.
• Legal structure and sponsors. Provide ownership structure, equity commitments, and sponsor track record.

LPO reviews Part I submissions within 60 days on average. A positive determination invites the applicant to submit Part II. If declined, LPO may provide feedback for future resubmission.

Part II application: Comprehensive due diligence package

Part II requires a detailed project dossier and carries a $350,000 fee (credited toward facility fees at closing). Key elements include:

• Technical volume. Engineering design, technology readiness assessments, resource studies, EPC contracts, construction schedules, operating plans, and performance guarantees.
• Financial model. Detailed cash flow projections with assumptions, debt service coverage ratios, sensitivity analyses, and contingency planning. Include financing plan, equity commitments, and hedging strategies.
• Market analysis. Supply/demand outlook, competitor landscape, pricing forecasts, and offtake agreements.
• Environmental documentation. NEPA status, environmental impact assessments, mitigation plans, and compliance with federal, state, and tribal requirements.
• Community benefits plan. Describe labor strategy, quality jobs, workforce development, community engagement, and benefits to disadvantaged communities, aligning with Justice40 goals.
• Legal and regulatory. Permits, licenses, interconnection agreements, intellectual property ownership, and compliance with Buy America/prevailing wage requirements when applicable.
• Risk management. Identify technical, financial, and operational risks with mitigation strategies (insurance, performance bonds, redundancies).

Expect multiple rounds of requests for information (RFIs). Keep data organized and respond promptly to maintain momentum.

Due diligence and term sheet negotiation

Upon accepting the Part II application, LPO initiates intensive due diligence:

• Independent engineering review. Third-party engineers validate technology performance, construction plans, and O&M assumptions.
• Financial diligence. LPO analyzes creditworthiness, stress tests financial models, and evaluates sponsor guarantees.
• Environmental review. Projects must complete NEPA; DOE may serve as lead agency. Early coordination with tribes and communities is essential.
• Legal diligence. Examination of contracts, corporate documents, collateral, and regulatory compliance.
• Credit subsidy cost. DOE calculates credit subsidy; IRA appropriations may cover portions, reducing upfront cost to borrowers.

Successful diligence leads to a term sheet, outlining loan amount, interest rate methodology, collateral, covenants, and conditions precedent. Negotiation addresses structuring details—co-lender arrangements, cash sweep triggers, reserve accounts, and reporting obligations.

Conditional commitment to financial close

After term sheet acceptance and payment of facility fees, DOE issues a conditional commitment contingent on meeting specified milestones (e.g., securing equity, final permits, EPC contracts). Borrowers then proceed to financial close, which may involve the Federal Financing Bank (FFB) as the lender with DOE guaranteeing the loan. Steps include:

1. Documentation. Draft loan agreement, guarantee agreement, collateral documents, intercreditor agreements, and security instruments.
2. Credit subsidy payment. Pay required credit subsidy (if not covered by IRA appropriations) prior to closing.
3. NEPA completion. Achieve Record of Decision or categorical exclusion.
4. Equity funding. Deposit equity contributions according to agreed schedule.
5. Financial close. Execute agreements, fund the loan, and begin construction.

Post-closing obligations

Title 17 borrowers must adhere to ongoing requirements:

• Reporting. Provide quarterly construction updates, operating reports, financial statements, and environmental compliance certifications.
• Covenant compliance. Maintain debt service coverage ratios, reserve balances, and other financial metrics. Notify DOE of material changes.
• Community benefits tracking. Report on job creation, workforce diversity, community investments, and Justice40 commitments.
• Site visits. Expect periodic DOE inspections and audits.
• Loan servicing. Coordinate drawdowns, interest payments, and prepayment notices with DOE and the lender.

Non-compliance can trigger default remedies, so implement robust project controls and governance.

Strategies to strengthen your application

• Engage early with LPO outreach staff. Pre-application consultations clarify eligibility and align expectations.
• Integrate community benefits into project design. Partner with labor unions, community colleges, and local governments to craft workforce training, apprenticeships, and community investment plans.
• Demonstrate market pull. Secure long-term offtake agreements (PPAs, supply contracts) or anchor customers to showcase demand.
• Highlight replicability. Illustrate how your project will catalyze a broader pipeline or unlock cost declines for emerging technologies.
• Coordinate with complementary incentives. Stack Title 17 with tax credits (PTC/ITC, 45Q, 45V), DOE grants, state green banks, or private tax equity to optimize the capital stack.

Case study: Advanced battery manufacturing

A domestic battery manufacturer sought financing for a $1.2 billion plant producing next-generation solid-state batteries. The company assembled $300 million in equity, secured supply agreements with automakers, and demonstrated pilot line success. LPO provided an $800 million Title 17 loan guarantee with FFB financing, enabling 25-year amortization at Treasury-based rates. The project created 1,800 construction jobs and 900 permanent positions, included union-backed apprenticeship programs, and achieved 60% emissions reduction compared with conventional lithium-ion production. Title 17 financing catalyzed additional private investment, positioning the company to expand capacity across multiple states.

Frequently asked questions

Can early-stage companies apply? LPO expects applicants to have robust financial backing and near-term construction plans. Early-stage firms should partner with experienced developers or co-sponsors to strengthen credibility.

Does Title 17 require domestic content? While not always mandatory, DOE encourages compliance with Buy America and prevailing wage standards, especially when stacking with IRA tax credits that require them.

Can Title 17 refinance existing debt? The Energy Infrastructure Reinvestment (EIR) category allows refinancing or repurposing existing energy infrastructure to reduce emissions, provided upgrades deliver substantial decarbonization benefits.

What interest rates apply? Loans financed through FFB typically use a Treasury rate plus a credit spread. Private lender structures follow negotiated terms with DOE guarantee backing.

How long does the process take? From Part I submission to financial close can take 12–24 months depending on project readiness, NEPA complexity, and diligence speed.

Glossary

• Credit subsidy cost: Present value of expected losses; applicants may pay or use appropriated funds.
• Energy Infrastructure Reinvestment (EIR): Title 17 category supporting projects that repurpose or retire high-emitting infrastructure.
• Federal Financing Bank (FFB): Treasury entity providing low-cost financing for federally backed loans.
• Justice40: Federal initiative directing 40% of benefits from climate and clean energy investments to disadvantaged communities.
• Technology Readiness Level (TRL): Scale assessing technology maturity; Title 17 targets TRL 7–9 (pilot/commercial).

Resources and data tools

• DOE LPO Title 17 Program Guidance and application templates.
• Community Benefits Plan toolkit and Justice40 mapping tools.
• Argonne National Laboratory GREET model for lifecycle emissions analysis.
• National Renewable Energy Laboratory (NREL) cost and performance data for emerging technologies.
• DOE permitting and NEPA resources to streamline environmental reviews.

Search optimization guidance

Use search phrases such as “Title 17 loan guarantee application,” “DOE LPO due diligence checklist,” “Energy Infrastructure Reinvestment financing,” and “innovative clean energy project funding.” Add sector terms (“green hydrogen Title 17,” “carbon capture loan guarantee”) to attract specialized audiences.

Action checklist

1. Conduct a readiness assessment covering technology innovation, emissions impact, financial robustness, and community benefits.
2. Assemble a seasoned project team and build a comprehensive data room before submitting Part I.
3. Submit Part I to establish eligibility, then deliver a detailed Part II application addressing technical, financial, environmental, and community dimensions.
4. Navigate due diligence proactively—respond to RFIs quickly, finalize NEPA, and negotiate term sheets that align with project risk.
5. Implement strong governance and reporting systems post-closing to maintain compliance and unlock future LPO support.

By mastering Title 17 requirements and demonstrating market-transforming potential, developers can secure patient, large-scale capital that accelerates America’s clean energy transition.