INTRODUCTION TO TRIBAL ENERGY LOAN GUARANTEE PROGRAM

Financing energy infrastructure NOW AVAILABLE: MORE THAN $40 BILLION LOAN & LOAN GUARANTEE AUTHORITY All-of-the-Above Energy Projects Benefiting Tribal Economies Up to $2 Billion in Partial Loan Guarantees TRIBAL ENERGY LOAN GUARANTEE PROGRAM Advanced Nuclear Energy $12.5 Billion ($2 Billion specifically for Front End) ($3.7 Billion conditionally committed to Vogtle) Advanced Fossil Energy $8.5 Billion ($2 Billion conditionally committed to Lake Charles Methanol) Renewable Energy & Efficient Energy Up to $4.5 Billion TITLE 17 INNOVATIVE ENERGY LOAN GUARANTEE PROGRAM ADVANCED TECHNOLOGY VEHICLES MANUFACTURING LOAN PROGRAM Domestic Manufacturing of Light-Duty Vehicles & Eligible Components $16 Billion

Lpo’S Value as a strategic partner DOE Has Experience with Innovation & New Markets: Innovative technologies and new markets may not be well understood by the private sector. LPO employs an experienced Technical team that also has access to DOE’s technology offices and national labs to dive in and better understand the technology. LPO’s Loan Origination team has experience with a variety of deal structures and with first-of-a-kind projects. The private sector has used what LPO learns to finance additional deals. Engaged Throughout the Life of the Loan: After closing, LPO’s Technical and Portfolio Management teams actively monitor the project and remain engaged with the owner throughout the life of the loan. Favorable Loan Terms: LPO has experience with interest rates that are competitive with the private sector, but also with loans of larger size and longer tenor than is typically available.

OVER $30 BILLION INVESTED Strong portfolio Catalyzing new Markets OVER $30 BILLION INVESTED https://www.energy.gov/lpo/portfolio

Tribal energy loan guarantee program History: Established by Energy Policy Act of 2005 First funded in Fiscal Year 2017 $8.5 Million for credit subsidy costs Program delegated to LPO, and outreach commenced, in February 2018 LPO launched TELGP Solicitation on July 17, 2018

Tribal energy loan guarantee program Statutory Authority (25 USC Section § 3502(c)) “Secretary of Energy may provide loan guarantees for an amount equal to not more than 90 percent of the unpaid principal and interest due on any loan made to an Indian tribe for energy development.” “The aggregate outstanding amount guaranteed by the Secretary of Energy at any time under this subsection shall not exceed $2,000,000,000.” DOE can structure the program as needed: “The Secretary of Energy may issue such regulations as the Secretary of Energy determines are necessary to carry out this subsection.”

TRIBAL ENERGY LOAN GUARANTEE PROGRAM DOE sought to learn more about tribes’ needs by: Sending outreach emails to more than 500 federal recognized tribes Participating at: Reservation Economic Summit in Las Vegas NAFOA 36th Annual Conference in New Orleans ICEIWG 2018 Second Quarter Meeting in Albuquerque NCAI Mid Year Conference & Marketplace in Kansas City Holding one-on-one meetings Soliciting written comments DOE is continuing to solicit feedback and may make adjustments to the program as appropriate to better serve tribes’ needs, consistent with DOE’s authority.

TRIBAL ENERGY LOAN GUARANTEE PROGRAM Goals: Increase availability of commercial debt financing rather than replace existing debt markets Provide economic opportunities to tribes through energy development projects and activities

Fossil energy, which could include drilling, mining, refining TRIBAL ENERGY LOAN GUARANTEE PROGRAM The Department’s loan programs support the Administration’s all-of-the-above energy strategy Fossil energy, which could include drilling, mining, refining Renewable energy, which could include solar, wind, geothermal, hydropower Transmission infrastructure and energy storage Transportation

TRIBAL ENERGY LOAN GUARANTEE PROGRAM Key Eligibility Requirement Tribe or 100 percent tribally owned entity is the borrower. No Restriction On Type Of Project/Technology Provide or expand electricity or other energy services such as generation, transmission, energy storage projects, or enhance energy resource extraction or processing (e.g. mining, oil & gas, biofuels, chemicals). No Requirement For Innovation Projects employing commercial technology preferred and may use renewable or fossil energy sources. No Specific Location Requirement On tribal land, traversing or connecting tribal land and nontribal land, or outside of tribal land, but otherwise benefiting the tribe. Can involve a single site or distributed portfolio. Limited To Partial Loan Guarantees Only, Requiring Non-federal Lenders

TRIBAL ENERGY LOAN GUARANTEE PROGRAM Application structure SIMILAR TO FINANCIAL INSTITUTION PARTNERSHIP PROGRAM (FIPP) SYNDICATED LOAN STRUCTURE Commercial lenders; DOE can guarantee up to 90% of debt. Borrower first approaches commercial lender. DOE encourages a pre-application consultation. Lenders would apply for DOE loan guarantee for specific borrower/project. DOE, lender, and borrower engage in diligence process and negotiations.

TRIBAL ENERGY LOAN GUARANTEE PROGRAM FINANCIAL TERMS REASONABLE PROSPECT OF REPAYMENT Eligible projects must be able to repay loan principal and interest. DOE will require credit ratings. EQUITY DOE expects that borrowers will make a significant equity contribution, in the form of cash, in the proposed project. FEES & COSTS DOE expects that DOE’s external advisor costs incurred will be borne by the borrower. Application and other fees to defer some of the internal costs that may be incurred by DOE.

What this program does not do TRIBAL ENERGY LOAN GUARANTEE PROGRAM What this program does not do Not a grant program; loan must be repaid with interest Not a direct federal loan program; debt provided by commercial lenders Cannot provide 100% debt financing; projects need equity from the Tribe Cannot lend to joint ventures between tribes and non-tribal entities

TRIBAL ENERGY LOAN GUARANTEE PROGRAM Request a pre-application consultation at TELGP@HQ.DOE.GOV or 202-586-1262. Visit www.energy.gov/LPO/TELGP to read the solicitation in its entirety and for further information about eligible borrowers, eligible lenders, eligible projects, and the application process.