DOE loan programs, Title 17 and SEFI options outlined to Maryland senators

Tom Hucker, a senior consultant at the U.S. Department of Energy’s Loan Programs Office, told the Senate Public Safety, Transportation and Environment Subcommittee that DOE lending authorities — expanded under the Inflation Reduction Act — can provide long‑term, below‑market capital for large clean‑energy projects in Maryland.

Hucker said the Loan Programs Office was created in 2005 to help proven technologies bridge to commercial bank financing and that the IRA greatly expanded its capacity. “We can lend not only at below market rates…Treasury plus three‑eighths,” he said, describing loan tenors of 20–30 years and customized financing to de‑risk projects for commercial markets.

The presentation focused on two major avenues of financing. Under Title 17 and the Energy Infrastructure Reinvestment (EIR) program, Hucker said Congress provided large loan authorities (he cited roughly $250 billion in loan authority for EIR) to help existing energy facilities transition — for example, retiring fossil plants and converting sites to solar plus battery storage, green manufacturing, or transit uses. Hucker stressed projects must be U.S.-based, energy‑related and achieve significant greenhouse‑gas reductions and include community benefits plans.

Hucker also described State Energy Financing Institutions (SEFIs), which allow DOE to back up to 80% of project costs when the state provides supporting finance or commitments. He listed eligible projects such as solar on schools, decarbonizing state and county buildings, multifamily housing efficiency upgrades, and transportation electrification like bus fleet conversions and airport shuttle electrification.

On timing, Hucker warned that many program authorities are time‑limited and that applications typically take six to 12 months to prepare. “I would urge you to take advantage of this funding, as quickly as possible,” he said, noting substantial existing national demand for DOE loans and urging Maryland to avoid falling behind other states securing financing.

The subcommittee asked how Maryland could maximize participation by local firms and minority‑owned businesses; Hucker recommended state requests for proposals and prize grants to surface private‑sector ideas and suggested states that have created executive coordination offices have been more successful at moving projects forward.

The subcommittee heard the presentation as part of an hourlong briefing on federal funding opportunities; no formal action or vote was taken. Members requested follow‑up materials and said they expected the agencies and MCEC to provide written examples and implementation guidance during the budget process.