DOE nixes climate requirements for loan guarantees

By Brian Dabbs | 10/28/2025 06:42 AM EDT

The department released rules Monday that expand loan-eligible projects, supporting infrastructure to boosts for fossil fuels and nuclear.

Transmission towers that carry high-voltage electricity are shown in East China Township, Michigan.

Transmission towers that carry high-voltage electricity are shown in East China Township, Michigan. Bill Pugliano/Getty Images

The Department of Energy will no longer require developers to curtail emissions and conduct community outreach to secure loan guarantees.

DOE nixed the requirements Monday in new rules that implement provisions from the Republican megalaw, known as the One Big Beautiful Bill Act. The rules dramatically expand the types of projects eligible under the DOE Loan Programs Office’s 1706 program, which previously targeted projects that retooled or replaced existing infrastructure.

For some energy experts, those changes suggest the department plans to underwrite more projects in the near future.

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“It seems like they’re getting more serious about doing some financing,” said Douglas Dua, a partner at the Hunton Andrews Kurth LLP law firm.

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