Tribal governments face stiff and “unique” challenges in securing loans from the Department of Energy, the Government Accountability Office said in a report published last week.
DOE lacks sufficient staff with “tribal experience” to analyze applications, and cash-strapped tribes are forced to pay costs for DOE contractors to review projects, said the report which is based on interviews with tribes and DOE staff and documents. The report from the congressional watchdog group was requested by the Senate Indian Affairs Committee.
“Lack of access to capital and other unique challenges in tribal communities have created barriers to such projects,” the report said. “Tribes may need financial and technical assistance to develop energy projects because they may not have sufficient revenue or capacity to independently develop projects.”
Since 2018, DOE’s Loan Programs Office has received 20 applications for loans and loan guarantees for tribal projects under the Tribal Energy Financing Program, and seven applications are currently active, the report said. Still, the loan office has closed only one loan guarantee under the program and no loans.
