The Inflation Reduction Act endorsed by Sen. Joe Manchin (D-WV) includes up to $250 billion in loan funding for the Department of Energy, according to the text of the bill, a major boost for the department’s efforts to back clean energy technologies and electric vehicle manufacturing.
Though it is unclear where exactly at the Department of Energy the funds would be directed, the investment is significant nonetheless — representing a large share of the legislation, which includes $369 billion in direct funding to combat climate change and bolster clean energy initiatives in the United States.
The legislation, if passed, will be the largest climate bill in the nation’s history and includes billions in funding directed to energy security and climate change programs over the next 10 years, including subsidies in domestic production and manufacturing, according to a summary released by Democrats.
It is unclear whether the funds would be funneled directly to the Department of Energy’s Loan Programs Office, which offers direct loan and loan guarantees for new and emerging technologies, or whether they would be allocated more broadly to DOE, which would then be tasked with administering the funds.
The Department of Energy did not respond to a request for comment.
Under President Joe Biden, DOE’s Loan Programs Office has sought to increase its investments in clean energy, advanced transportation, and tribal energy projects.
Last month, the office announced a $504.4 million loan guarantee to a hydrogen energy and storage facility in Utah, marking its first loan guarantee for a new clean energy project since 2014.