Trump Is Looking for Ways to Cancel $400 Billion in Clean Energy Loans | OilPrice.com
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Breaking News:
The Trump administration is looking into ways to cancel federal loans granted by the Department of Energy for transition projects from a $400-billion fund, Bloomberg has reported, citing an unnamed source.
According to the report, the new leadership at the Department of Energy would focus its financial firepower on projects in nuclear energy, liquefied gas and other segments supported by the White House, as announced by the new director of the department’s loan office, John Sneed.
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Bloomberg also reported that the Department of Energy had said in an email statement that loans granted by the previous administration were under review currently “to ensure all activities are consistent with President Trump’s executive orders and priorities.” According to Bloomberg’s source, it is uncertain whether there is a legal path to canceling the previously granted loans.
The news about the change in priorities at the Department of Energy’s Loan Programs Office comes less than two months after the news emerged that the office was in a rush to hand out billions ahead of Trump’s taking office in anticipation of just such a change in priorities.
The Financial Times reported in December that the loans office had handed out over $38 billion in loans since the November elections. For context, the total commitments since the passing of the Inflation Reduction Act had amounted to $54 billion in loans and loan guarantees.
By far the biggest DoE loan commitment was the $15 billion that the Loan Programs Office granted to Pacific Gas and Electric to upgrade its infrastructure. This is the largest LPO loan ever granted.
Among the other large commitments by the LPO the FT listed in its December was a $7.54-billion loan to Samsung and Stellantis for a battery plant in Indiana, a $6.57-billion loan to electric car maker Rivian, which is also backed by Amazon, and a $4.9-billion commitment to transition tech major Invenergy for the construction of a transmission line.
By Irina Slav for Oilprice.com
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