### Biden Admin Rushes to Cement Climate Legacy with $25 Billion in Clean Energy Loans

In a race against the clock, President Joe Biden's administration is striving to finalize $25 billion in loans for clean energy projects before President-elect Donald Trump takes office. This extensive drive by the Department of Energy (DOE) could shape Biden’s climate legacy, especially given Trump's promise to dismantle Democrat-led spending programs.

Leading the initiative is the DOE’s Loan Programs Office, which has been instrumental in Biden's efforts to promote a greener economy. Among the significant projects are billion-dollar deals to revitalize a nuclear power plant in Michigan, support lithium mining in Nevada, and develop factories for electric vehicle components in Ohio and Tennessee. The future of these efforts is uncertain as Trump, who once backed only one project from this office and proposed budget cuts, prepares to step in.

Energy companies are racing to secure financial backing, with $9.2 billion designated for an EV battery project in Kentucky and Tennessee, $1.5 billion for sustainable aviation fuel in South Dakota, and $1 billion for electric vehicle charging infrastructure nationwide. Notably, 16 out of 29 proposed loans remain pending, bearing significant impact on projects like Plug Power’s $1.7 billion loan for building green hydrogen plants.

Several of the pending loans, such as the $9.2 billion for BlueOval SK’s battery factories in Kentucky and Tennessee, face critical deadlines. Companies are keenly aware that unresolved loans by January 20th, when Trump is inaugurated, may be at risk. Former Energy Department officials and industry insiders predict the Biden administration will expedite these loans to ensure their completion.

The Loan Programs Office, established in 2005 to aid in financing emerging energy technologies often overlooked by private capital, has had mixed success. While it helped fuel Tesla Motors' rise with a $465 million loan in 2010, it also faced criticism for backing Solyndra, a solar manufacturer that went bankrupt despite a $535 million loan guarantee. Only one loan was approved during Trump’s first term: a $3.7 billion guarantee for a nuclear reactor in Georgia.

Under Biden, Jigar Shah, a noted clean energy entrepreneur, revitalized the office, which has since announced roughly $37 billion in loans for 29 projects. Currently, $25 billion worth of loans remain conditional, with the administration rushing to finalize them. Should these efforts falter, the incoming Trump administration, known for its critical stance on government spending, might halt or cancel pending loans.

With key Republican districts benefitting from the loans, analysts suggest that geographical considerations might influence the Trump administration’s decisions. However, broader fiscal policies aimed at cutting federal spending could still jeopardize many of these initiatives.

In closing, energy sector stakeholders express urgency and optimism, pointing to advanced negotiations and ongoing projects that are critical to their operations. The coming weeks will determine whether Biden’s ambitious clean energy plans will solidify or be derailed by the changing political landscape.