Tribal Energy Finance: Changes to DOE Loan Program Would Reduce Barriers for Tribes
Fast Facts
The Department of Energy’s Tribal Energy Financing Program offers Tribes loans and loan guarantees for energy projects—such as natural gas, solar, and wind infrastructure. But several factors make it harder for Tribes to access this financing, which can cause them to miss opportunities to generate revenue.
For example, DOE hires outside lawyers, technical experts, and more to review projects. Tribes are required to cover the costs of these services, which can be high and unpredictable. Also, DOE has few designated staff with tribal experience to review applications, so reviews take longer.
We recommended that DOE address these issues and more.
A battery storage system at The Viejas Solar Microgrid Project in California
A battery storage system at The Viejas Solar Microgrid Project in California
Highlights
Why This Matters
Tribes can get important economic benefits from energy projects on their lands, such as revenue for government operations. The Department of Energy’s (DOE) Tribal Energy Financing Program (TEFP) offers loans and loan guarantees for such projects.
However, Tribes may be experiencing barriers to participation, which could limit development of untapped energy resources on tribal lands.
GAO Key Takeaways
Since its first solicitation in 2018, TEFP has received 20 applications for loans and loan guarantees for various project types and amounts. Requests ranged from $23.7 million for a solar project to $8.7 billion for an ammonia production facility for low-carbon fuel. DOE’s Loan Programs Office, which manages TEFP, has closed one loan guarantee and no loans. According to DOE officials, seven other applications were active as of July 18, 2025.
Tribes said TEFP can finance a variety of energy projects needed for energy production and economic development. However, aspects of TEFP’s design and implementation create barriers. For example, DOE hires outside lawyers and technical experts to review projects. Tribal applicants are required to cover the costs of these services, which can be high and unpredictable. Tribes may avoid applying for the program until DOE revises its review processes to reduce or eliminate the cost.
Additionally, there are few DOE program staff with tribal experience to review applications, which can lengthen reviews. Without staff with the necessary expertise, Tribes may continue to experience barriers to securing TEFP financing.
Status of All 20 Applications to the Department of Energy’s (DOE) Tribal Energy Financing Program, as of February 2025
Note: Active applications include closed loans, which DOE has finalized with the applicant and continues to monitor throughout the loan term. Inactive applications have been put on hold, withdrawn, or abandoned. DOE officials confirmed that they had not received any new applications for the program as of July 18, 2025.
How GAO Did This Study
We analyzed agency data and documents and interviewed agency officials, potential tribal participants, and tribal stakeholders. We compared agency efforts with relevant laws, regulations, guidance, and executive orders.
Recommendations
We are making five recommendations to DOE, including that it revise its review process to reduce fees. We are also recommending that DOE maintain designated staff to review TEFP applications and provide them more training.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Energy | The Secretary of Energy should ensure the Director of LPO (1) systematically identifies and assesses the applicability of federal funding and assistance sources to support Tribes with development activities for large-scale energy projects, with input from IE; (2) implements its plans to disseminate such information to tribal applicants; and (3) provides information on gaps to Congress for consideration, as appropriate. (Recommendation 1) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Energy | The Secretary of Energy should ensure that the Director of LPO further develops and implements options to revise its TEFP due diligence review process to further reduce or eliminate related fees for tribal energy projects on project-by-project basis, as appropriate. Such options could include revising these processes to include in-house underwriting and limiting the use of consultant contracts. (Recommendation 2) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Loan Programs Office | The Director of LPO should direct staff to implement proposed program changes to reduce the length and complexity of the application process for Tribes. (Recommendation 3) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Energy | The Secretary of Energy should ensure that once LPO has finalized changes to TEFP, the Director of LPO completes the development, documentation, and distribution of internal guidance on any program requirements not detailed in the program's solicitation. It should also publish relevant external guidance that is consistent with internal procedures. (Recommendation 4) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
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| Department of Energy | The Secretary of Energy should ensure that the Director of LPO consistently maintains designated staff in each division reviewing TEFP applications and provide additional training to build tribal competence and knowledge of tribal energy finance. (Recommendation 5) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
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