As the 2024 election looms, the Biden administration is accelerating efforts to distribute billions in clean-energy loans, fearing the program could stall if former President Donald Trump is re-elected, the Wall Street Journal reported.

The Biden administration is racing against time to push billions of dollars in clean-energy loans out the door, concerned that the program may come to a standstill if Trump returns to the White House.

The Department of Energy's Loan Programs Office (LPO), supercharged by the 2022 Inflation Reduction Act with $400 billion, has been slow to allocate funds but is now making a concerted effort to ramp up lending before the 2024 presidential election.

Under President Biden, the LPO has committed $6.5 billion to five companies and pledged $24.9 billion to others, but a significant portion of the program's capacity remains untapped. Administration officials fear that a Trump victory could halt or shift the focus of these loans, which are crucial for advancing clean energy projects and creating jobs.

"The election is everything," said Adam Forgie, the Democratic mayor of Turtle Creek, Pennsylvania. His town is home to Eos Energy, a startup producing zinc batteries for energy storage. Eos has secured a nearly $400 million commitment from the LPO to expand its factory, a project expected to create hundreds of jobs in an area hit hard by the collapse of the manufacturing industry. "Hopefully, whoever wins understands the need for business in this town," Forgie added.

Eos Energy's Chief Executive Joe Mastrangelo echoed the urgency, emphasizing the company's efforts to finalize the deal quickly. The LPO's recent activity reflects this urgency, with new commitments, including $1.45 billion for a solar panel manufacturer and $1.2 billion for a battery parts maker. These agreements are part of a broader strategy to reduce U.S. reliance on China for critical battery components.

Despite these recent commitments, concerns remain. Political appointees must approve loans, meaning the program could be subject to policy changes if the administration shifts. Companies worry that loans not finalized before the election could be left in limbo if Trump wins. During his previous term, the program was largely dormant.

The Biden administration has taken steps to avoid such an outcome. The LPO, now led by former clean-energy entrepreneur Jigar Shah, has quadrupled its staff and prioritized speeding up the review process. However, the stringent requirements for securing loans, including the need for private investment and rigorous due diligence, have slowed the pace of approvals.

Past failures, like the 2011 collapse of Solyndra, which defaulted on a $535 million loan, continue to haunt the LPO. Shah has reassured that today's process is much more stringent, with a default rate comparable to commercial banks. Successful past loans, such as Tesla's $465 million loan in 2010, repaid in 2013, bolster confidence in the program's potential.

Sasha Mackler, executive director of the energy program at the Bipartisan Policy Center, suggested that lending could shift toward Republican-favored technologies, such as nuclear power and carbon capture. Despite this, Mackler believes the "LPO will continue to function."

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