The bill President Biden signed into law recently will greatly expand government loans and loan guarantees for clean energy and automotive projects and businesses.
Tucked into the Inflation Reduction Act that President Biden signed last week is a major expansion of federal loan programs that could help the fight against climate change by channeling more money to clean energy and converting plants that run on fossil fuels to nuclear or renewable energy.
The law authorizes as much as $350 billion in additional federal loans and loan guarantees for energy and automotive projects and businesses. The money, which will be disbursed by the Energy Department, is in addition to the better-known provisions of the law that offer incentives for the likes of electric cars, solar panels, batteries and heat pumps.
Correction:
An earlier version of this article misstated the purpose of a $5 billion provision in the Inflation Reduction Act. It is to support the costs of energy loan programs; it is not for grants.
Correction:
An earlier version of this article misidentified the energy market in which the Palisades Power Plant in Michigan is situated. It is the Midcontinent Independent System Operator, not PJM.
