Sponsors (2)
The bill expedites federal loan guarantees and reserves funds to quickly restore emergency generation capacity—boosting near-term grid reliability and national security—but increases taxpayer financial risk and may lock in aging fossil-fuel infrastructure while disadvantaging smaller utilities.
Utilities and energy companies can obtain federal loan guarantees to repair or upgrade generation capacity needed to operate during a Department of Energy 202(c) emergency order, improving near-term grid reliability.
At least $20 billion in guarantee authority is set aside and prioritized for projects that restore emergency generation capacity, increasing the likelihood that critical emergency projects receive funding.
Extending the availability and commitment authority for the guarantee program makes long-term projects more likely to secure financing and complete upgrades.
Taxpayers face increased financial risk because up to $20 billion (or more) in federal loan guarantees could be used to support projects at aging fossil-fuel plants.
Prioritizing and reserving large guaranteed-loan funds for emergency-generation projects risks locking in continued use of aging coal and fossil infrastructure and diverts funds from clean-energy or resilience projects, slowing the energy transition.
Short application deadlines (60 days) for solicitations may favor larger utilities able to apply quickly and disadvantage smaller operators, reducing competition and potentially concentrating benefits.
Based on analysis of 2 sections of legislative text.
Allows DOE loan guarantees for generation facilities compelled to run by FPA section 202(c), reserves at least $20B for such projects, and requires DOE solicitations and a one-year report.
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 new rule so that electric generating facilities that are forced to operate under a Federal Power Act section 202(c) emergency order are treated as having “ceased operations” for purposes of an existing Department of Energy loan guarantee program, directs the Energy Secretary to solicit loan guarantee applications tied to 202(c) orders (including within 60 days for active orders), extends certain commitment and availability timing in related law, reserves at least $20 billion of loan guarantee authority for projects that support generation under 202(c) orders, and requires a one-year report to Congress on guarantees, capacity added, principal guaranteed, and recommendations to incentivize upgrades to aging coal plants.