Indian Energy Programs at the Department of Energy

Indian Energy Programs at the Department of Energy

Updated December 20, 2022
Indian Energy Programs at the Department of Energy
Indian energy programs at the Department of Energy
Tribal Energy Loan Guarantee Program
(DOE) are primarily carried out by the Office of Indian
Section 503 of the Energy Policy Act of 2005 (P.L. 109-58,
Energy Policy and Programs (IE) and the Loan Programs
EPACT 2005), among other provisions, authorized DOE to
Office (LPO). IE funds various activities that assist Indian
guarantee up to 90% of loans (including principal and
tribes and Alaska Native villages with energy development,
interest) made to an Indian tribe or a tribal energy
energy-related capacity building, reduction of energy costs,
development organization for energy development.
and electrification of tribal lands and homes. LPO provides
Aggregate outstanding guaranteed loans cannot exceed $2
loan guarantees and direct lending to Indian tribes for
billion at any time. As with all federal credit programs,
energy development. Tribes and Alaska Native villages
loans guaranteed under this program are statutorily required
may be eligible for funding through other DOE programs as
to pay a “subsidy cost” (a share of estimated program-wide
well. An overview of IE and LPO and each program’s
losses) prior to finalizing the loan guarantee agreement.
legislative and administrative history is provided below.
Subsidy costs can be paid through appropriations, by the
applicant, or a combination thereof. Congress provided
Indian Energy Program
funding to the program in FY2017 including $8.5 million to
Section 2606 of the Energy Policy Act of 1992 (P.L. 102-
be available for loan guarantee subsidy costs. DOE first
486, EPACT 1992) authorized DOE to grant financial
issued a solicitation for the Tribal Energy Loan Guarantee
assistance to Indian tribal governments. Through legislative
Program (TELGP) in 2018. DOE amended and restated a
and administrative action, the program has changed over
solicitation on May 25, 2022, and supplemented the
time. IE provides financial assistance, technical assistance,
solicitation on September 30, 2022. Submissions are due by
and education and capacity building to address barriers to
August 31, 2028. In May 2022, DOE eliminated
deployment of energy generation and energy efficiency
application, facility, and maintenance fees related to
projects on tribal lands. IE funding for FY2022 totaled $58
TELGP in response to concerns expressed by tribes.
million (P.L. 117-103).
FY2022 appropriations (P.L. 117-103) provided authority
for the Secretary of Energy to provide direct loans through
Financial Assistance
the Federal Financing Bank via the LPO. This authority was
Financial Assistance constitutes IE’s primary form of
also granted for funds appropriated previously. P.L. 117-
support for energy technology deployment on tribal lands.
169, often referred to as the Inflation Reduction Act of
Financial Assistance is available for the following types of
2022, made permanent direct lending authority for TELGP
energy technology projects: (1) transition tribal colleges
and eliminated the 90% limit for loan guarantees. This
and universities to renewable energy; (2) provide universal
eligibility was first implemented by an updated solicitation
energy access on tribal reservations; (3) transition tribal
issued in July 2022 (Section 50145). The law also
reservations to low-carbon energy; and (4) train and build
appropriated $75 million through September 30, 2028, and
tribal energy resource capacity skills.
expanded the loan guarantee authority from $2 billion to
$20 billion. At the time of publication, no loans or loan
From 2010 through 2022, IE reports its financial assistance
guarantees have been issued under this program. (For more
totaled nearly $114 million for more than 200 tribal energy
details, see CRS Insight IN11452, Department of Energy
projects, plus cost-shares by grant recipients totaling over
Loan Programs: Tribal Energy Loan Guarantee.)
$80 million.
Legislative History of Indian Energy
Technical Assistance
Programs
IE technical assistance is intended to help overcome
Section 2606 of EPACT 1992 authorized DOE to grant
obstacles or fulfill needs in developing and implementing
financial assistance to Indian tribal governments for
tribal energy projects. According to IE, “Current projects
projects that evaluate or adopt energy efficiency and
funded by DOE grants receive highest priority. Priority will
renewable energy projects on Indian reservations.
also be given to tribes that have previously submitted grant
applications, but have not yet received awards.” Types of
Sections 502 and 503 of EPACT 2005 established IE within
technical assistance provided by IE include education and
DOE. In addition, EPACT 2005 broadened the DOE tribal
outreach, technical analysis, financial analysis, and strategic
financial assistance program to a wider range of energy
energy planning for tribal energy projects. IE reports that
projects. This included a grant program to assist tribes in
almost 400 technical assistance requests have been
meeting energy-related needs, authorizing appropriations of
completed between 2010 and 2022.
$20 million annually for FY2006 through FY2016. CRS
estimates approximately $64 million was appropriated
during this period. The Energy Act of 2020 (Division Z of
P.L. 116-260) reauthorized this program for $30 million
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Indian Energy Programs at the Department of Energy
annually for FY2021 through FY2025. Title V of EPACT
Administrative History
2005 established electricity purchasing authority of tribal
energy by the federal government. At the second Tribal
Tribal Energy Program
Nations Summit, Biden Administration officials announced
From FY1994 through FY2003, DOE administered
a DOE initiative to use this authority for the first time.
financial assistance to tribes for energy projects under
activities with various names, including Tribal Energy
In the 115th Congress, P.L. 115-325 made several
Grants, Tribal Energy Assistance, and Renewable Indian
adjustments to DOE’s Indian energy programs, including
Energy Resources. After FY2003, DOE established the
the following changes:
Tribal Energy Program (TEP) (sometimes referred to as
“Tribal Energy Activities”). The TEP operated within the
 expanding eligibility for DOE’s tribal energy grant
Weatherization and Intergovernmental Activities of the
program to include intertribal organizations;
Office of Energy Efficiency and Renewable Energy
(EERE). Following the establishment of IE in EPACT
 expanding program activities to include a broader array
2005, the TEP continued to operate separately and receive
of energy development projects, beyond renewable and
funding through EERE. In FY2015, the TEP transferred
energy efficiency projects;
from EERE to IE and was renamed the Indian Energy
Program.
 allowing grants to be used to increase the capacity of
tribes to manage energy programs;
Office of Indian Energy Policy and Programs
Congress first appropriated funding for IE in FY2009. The
 expanding eligibility for TELGP to include tribal energy
Explanatory Statement for the FY2009 omnibus
development organizations; and
appropriations (P.L. 111-8) included $1.5 million “to
establish an Office of Indian Energy Policy and Programs,
 making DOE technical and scientific resources more
as authorized in section 502 of the Energy Policy Act of
available for tribal energy activities and projects.
2005.” Congress appropriated funding to IE under DOE’s
Departmental Administration (DA) appropriations account.
Section 8013 of the Energy Act of 2020 also amended
Indian energy programs by allowing the Secretary to reduce
IE formally opened in FY2011 after appointing a Director
any required cost share for grants from 50% to 10%.
and hiring administrative staff. DOE established IE under
the Office of Congressional & Intergovernmental Affairs
Table 1 lists the authorizing statutes for the Office of
(CIO). Until FY2021, IE received its funding through CIO,
Indian Energy, the Tribal Energy Program, and the Tribal
which is funded through the DA appropriation. In the
Energy Loan Guarantee Program.
FY2012 budget justification, DOE requested that IE be a
separate funding category within DA.
Table 1. Department of Energy Indian Energy
Programs and Authorizing Legislation
In the Consolidated and Further Continuing Appropriations
Act of 2015 (P.L. 113-235), Congress eliminated funding
Authorizing
Subsequent
for TEP within EERE and provided funding to TEP only
Program Name
Legislation
Amendments
under the consolidated IE office, which remained within the
Tribal Energy
P.L. 102-486,
P.L. 109-58,
DA appropriations account.
Program
Title XXVI, §2606 Title V, §503
For FY2016, FY2017, and FY2018, Congress continued to
Office of Indian
P.L. 109-58,
P.L. 115-325,
fund IE through the DA account. Congress provided a
Energy Policy and
Title V, §§502, 503 Title I, §§101, 104,
separate appropriations account for IE for the first time in
Programs
105; P.L. 116-260,
the FY2019 appropriations act (P.L. 115-244), and has
Division Z, §8013
continued that practice through FY2022. IE appropriations
Tribal Energy Loan P.L. 109-58,
P.L. 115-325,
for FY2022 totaled $58 million.
Guarantee
Title V, §503
Title I, §101; (P.L.
Policy Considerations
Program
117-169) Title V,
Congress remains interested in the implementation and
§50145
effectiveness of these energy programs for Indian tribes and
Sources: P.L. 102-486; P.L. 109-58; P.L. 115-325; P.L. 116-260.
Alaska Native villages. As no loan guarantees have been
Notes: P.L. 102-486 = Energy Policy Act of 1992; P.L. 109-58 =
made under TELGP, some stakeholders have questioned
Energy Policy Act of 2005; P.L. 115-325 = Indian Tribal Energy
whether DOE is conducting sufficient outreach to eligible
Development and Self-Determination Act Amendments of 2017; P.L.
parties or whether the program is needed. In response, LPO
116-260 Division Z = Energy Act of 2020. In FY2015, the Tribal
held a listening session with tribal leaders and interested
Energy Program (now Indian Energy Program) was transferred from
stakeholders in June 2021 and DOE updated the solicitation
the Office of Energy Efficiency and Renewable Energy to the Office of
to address other feedback in 2022. The 117th Congress
Indian Energy Policy and Programs.
enacted several changes to TELGP designed to address
concerns expressed by tribes; the impact of these changes
on program implementation is not clear.
Corrie E. Clark, Specialist in Energy Policy
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Indian Energy Programs at the Department of Energy

Lexie Ryan, Analyst in Energy Policy
Mark Holt, Specialist in Energy Policy
IF11793

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https://crsreports.congress.gov | IF11793 · VERSION 3 · UPDATED