Title 17 Clean Energy Financing – State Energy Financing Institution (SEFI)-Supported Projects
Financing for projects that align with state clean energy priorities
Overview
Through the State Energy Financing Institution (SEFI)-Supported category of the Title 17 Clean Energy Financing Program, LPO can augment state-administered clean energy programs, providing additional financial support to projects that align federal energy priorities with those of U.S. states. SEFI-Supported projects do not have a technology innovation requirement, so the authority expands eligibility for LPO financing to include certain projects that incorporate commercial technologies or aggregate technology-diverse projects and that receive meaningful financial support or credit enhancements from a SEFI.
Looking to apply? Check out our SEFI Toolkit!
Defining SEFIs and SEFI Support
A SEFI is an entity established by a state, Indian Tribal entity, or Alaska Native Corporation to provide financing support or credit enhancements for eligible clean energy projects and to take steps to reduce financial barriers to the deployment of eligible clean energy projects. City and county agencies will generally not qualify as SEFIs.
Examples of qualifying project participation by a SEFI may include, but are not limited to:
- Providing equity/subordinate portion of capital stack
- Providing loan loss reserve with respect to junior portion of capital stack
- Co-lending with LPO (pari passu or mezzanine)
- Providing financial backstop for specific key project elements that may be subject to regulatory or local market risk
Statewide policies, such as Renewable Portfolio Standards (RPS) typically will not constitute meaningful SEFI support for a project.
Federal Support Restriction: SEFI-Supported projects may not utilize federally appropriated funds for the repayment of a loan guaranteed by LPO, but the fact that a SEFI receives federal support at an organizational level or for unrelated projects may not disqualify the proposed project so long as the federal funding does not directly or indirectly support the proposed project.
Eligibility
In addition to the common eligibility requirements that apply to all Title 17 Clean Energy Financing projects, SEFI-Supported projects must meet several additional eligibility criteria.
- SEFI-Supported projects must align with one of the following eligible technologies:
- Advanced nuclear energy
- Efficient electrical generation, transmission, and distribution
- Supply of critical minerals
- Carbon capture and sequestration technologies
- Advanced fossil energy technology
- Oil refineries
- Energy storage technologies
- Production facilities for the manufacture of fuel-efficient vehicles or parts of those vehicles
- Renewable energy systems
- Industrial decarbonization technologies
- Hydrogen fuel cell technology
- Pollution control equipment
- Efficient end-use energy technologies
- SEFI-Supported projects must receive meaningful financial support or credit enhancements from a SEFI.
Possible State Energy Financing Institution-Supported Project Areas
A wide range of clean energy projects may qualify for LPO financing through the SEFI-Supported category. The following is a set of project types that could be eligible, subject to LPO review. These examples are neither exhaustive nor limiting.
- SEFI-supported energy efficiency upgrades and electrification of single-family residences
- SEFI-supported community solar projects
- SEFI-supported facilities related to decarbonized industrial products
- SEFI-supported construction of high-quality, energy-efficient, housing
- SEFI-supported financing of energy efficient and grid-interactive appliances
Additional program details and application requirements are described in the Title 17 Clean Energy Financing Program Guidance and on the Title 17 Overview web page. Examples of SEFI activity across the country can be found on the SEFI Toolkit and in the SEFI Activities Handout.
Next Steps
If you have a project that may be eligible for financing through the SEFI-Supported project category, please request a no-cost pre-application consultation. You can also access the SEFI Toolkit for additional guidance.
Monthly State and Local Newsletter
June/July 2024: CO, PA Issue RFIs, TX Webinar Scheduled for 7/31
May 2024: SEFI Toolkit Updated • MI Seeks SEFI Projects • AZ⚡DC Release RFIs
April 2024: AK Touts SEFI Advantage, Catch up on SEFI Webinars
March 2024: New State RFIs, Solar for Schools & Clean Transportation
February 2024: More States Issuing Partner Funding Opportunities
January 2024: Learn How States Are Designing SEFI Programs, Meet with LPO at NASEO
December 2023: Defining Meaningful Financial Support, Latest State Funding Opportunities