DOE Issues Interim Final Rule Implementing Energy Dominance Financing

The U.S. Department of Energy's (DOE) Loan Programs Office (LPO) has issued an interim final rule (IFR) amending 10 C.F.R. Part 609 to implement the Energy Dominance Financing (EDF) provisions enacted in the One Big Beautiful Bill Act (OBBB). The IFR takes effect immediately and invites public comment through late December 2025.

The rule aligns DOE's loan guarantee regulations with recent statutory amendments to Section 1706 that the authority originally established by the Inflation Reduction Act of 2022 (IRA) and subsequently expanded under OBBB. Collectively, these changes mark one of the most significant evolutions of the Title XVII program since its creation in 2005.

Key Changes to DOE's Loan Guarantee Program

Expanded Scope of Eligible Projects

DOE introduces the term "energy dominance financing project" and broadens the definition of "energy infrastructure" to include activities across the energy and critical minerals value chain – from identification and leasing to production, processing, transportation, refining and generation.

In practical terms, this expansion could now cover projects such as:

• upgrades or capacity expansions at operating natural gas or coal plants to enhance reliability or extend usable life
• critical minerals extraction, refining or midstream processing facilities that strengthen U.S. supply chains
• grid-scale storage and generation projects that ensure forecastable power delivery during peak or reliability-critical intervals

This represents a major shift from prior language that limited eligibility largely to power generation, transmission and fossil fuel infrastructure.

Revised Eligibility Criteria Under Section 1706

An EDF project may now qualify if it:

• retools, repowers, repurposes or replaces energy infrastructure that has ceased operations
• enables operating infrastructure to increase capacity or output
• supports or enables provision of known or forecastable electric supply at intervals needed to maintain or enhance grid reliability or other system adequacy needs

This shift formally replaces the prior requirement that projects "avoid, reduce, utilize, or sequester" greenhouse gas emissions – codifying OBBB's move from emissions-driven criteria toward reliability, capacity and energy security objectives.

Streamlined Application Requirements

The IFR eliminates the requirement that applicants submit an analysis of how their projects will "engage with and affect associated communities." For electric utilities, however, DOE retains the requirement to provide an assurance that the financial benefit of any loan guarantee will be passed on to customers or associated communities.

Treatment of Applicants in Process

DOE confirms that provisions of loan guarantee regulations not amended by OBBB remain in full force and effect. This allows the DOE to continue processing existing applications already in the pipeline under prior Section 1706 guidance and expand eligibility for new applicants under the updated framework.

Policy Context and Practical Implications

The IFR effectively synchronizes the post-OBBB statutory changes with DOE's existing loan guarantee framework. The cumulative effect is a material expansion in the types of projects that may qualify for financing – particularly those tied to domestic resource development, critical minerals and grid reliability.

• Broader Project Mix. The rule explicitly opens the door to upstream and midstream energy projects, including those that enable critical mineral production or enhance system adequacy.
• Reliability Focus. DOE's addition of "forecastable electric supply" reflects the Trump Administration's emphasis on firm, dispatchable capacity and grid reliability.
• Immediate Effect. As an interim final rule, the changes take effect while DOE solicits public comment – allowing current applicants to move forward under the updated framework.
• Unchanged Credit Standards. While the range of eligible projects has expanded, DOE emphasizes that its requirement for a "reasonable prospect of repayment" remains unchanged.
• Program Capacity. The IFR confirms that Section 1706 authorizes up to $250 billion in total loan guarantees through Sept. 30, 2028 – a cap originally established under the IRA and maintained under the OBBB. OBBB provides $1 billion in new appropriations to cover credit subsidy and administrative costs, which is estimated to support roughly $200 billion in additional project financing. Actual lending capacity will ultimately rely on the Trump Administration's continued support for LPO operations and maintenance of a full complement of underwriting and technical staff.

Recommended Next Steps for Applicants

• Reassess Project Eligibility. Review ongoing and planned applications under the expanded Section 1706 criteria, particularly capacity expansions, reliability-focused generation and critical minerals infrastructure.
• Prepare Documentation Updates. Align Part I and Part II materials to reflect the new EDF terminology and eligibility framework.
• Consider Commenting. Stakeholders may wish to address definitional clarity around "forecastable supply," treatment of partial facility uprates or examples of qualifying minerals projects.

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