Sponsors (2)
The bill improves emergency generation resilience by prioritizing and reserving federal loan guarantees (including a substantial set-aside) for projects that keep generators online during crises, at the trade-off of increased taxpayer financial exposure and a risk of prolonging fossil-fuel infrastructure while disadvantaging smaller operators.
Utilities and energy companies can access prioritized federal loan guarantees (including at least $20 billion set aside) to repair or upgrade generation capacity needed to run under a 202(c) emergency order, improving system resilience during supply emergencies.
Utilities and energy companies (and long-term projects) benefit from extended availability and commitment authority for guarantee funds, increasing the likelihood that multi-year upgrades can secure financing.
Congress and taxpayers gain oversight because the bill requires a report within one year detailing guarantees made, capacity added, and options to incentivize upgrades to aging coal plants.
Taxpayers may face increased financial risk because up to $20 billion (or more) in federal loan guarantees could be used for projects at aging fossil-fuel plants, exposing the government to potential losses.
Rural communities, middle-class families, and taxpayers could see a slower transition to cleaner energy and continued local pollution risk because prioritizing emergency-generation guarantees may lock in aging coal/fossil infrastructure and crowd out funds for clean-energy or resilience projects.
Smaller utilities and operators may be disadvantaged because the 60-day application solicitation window favors larger companies with the capacity to apply quickly, concentrating benefits among bigger players.
Based on analysis of 2 sections of legislative text.
Creates a loan-guarantee pathway and reserves at least $20 billion for projects needed to generate electricity under Federal Power Act section 202(c) emergency orders, and requires DOE to solicit applications and report to Congress.
Official title: To amend the Energy Policy Act of 2005 to extend the period of availability of funds and commitment authority for energy infrastructure reinvestment financing and to require the solicitation of applications from energy infrastructure required to generate electric energy during an emergency, and for other purposes.
Introduced April 14, 2026 by Josh S. Gottheimer · Last progress April 14, 2026
Creates a targeted loan guarantee pathway and reserve for electric generation projects that are ordered to run under a Federal Power Act emergency (section 202(c)). It treats facilities compelled to operate by a 202(c) order as having "ceased operations" for eligibility, requires the Energy Secretary to solicit loan guarantee applications when issuing such orders (and within 60 days for existing orders), and reserves at least $20 billion of available guarantee authority specifically for projects tied to generation needed to comply with a 202(c) order. Also extends and modifies the timing and availability language for existing loan guarantee authority tied to the Inflation Reduction Act, and requires a one-year report to Congress on guarantees made, capacity added, total principal guaranteed, and recommendations to incentivize upgrades to aging coal facilities.