[Federal Register Volume 85, Number 231 (Tuesday, December 1, 2020)]
[Notices]
[Pages 77202-77203]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26407]


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DEPARTMENT OF ENERGY


Notice of Guidance for Potential Applicants Involving Critical 
Minerals and Related Activity

AGENCY: Loan Programs Office, Department of Energy.

ACTION: Notice of guidance for potential applicants involving critical 
minerals and related activity.

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SUMMARY: The U.S. Department of Energy (``DOE'') hereby provides notice 
of guidance for applicants to the Loan Programs Office under Title XVII 
of the Energy Policy Act of 2005 (Title VXII) and the Energy 
Independence and Security Act of 2007 (ATVM statute). The guidance 
describes the types of applicants and projects that may be considered 
by the Loan Programs Office under Title XVII and the ATVM statute.

DATES: DOE will accept applications regarding the foregoing from 
December 1, 2020 through February 1, 2021. For further information, 
please visit: https://www.energy.gov/lpo/application-process.

ADDRESSES: Interested parties are to submit applications electronically 
through the following link: https://www.energy.gov/lpo/application-process. Additional guidance and information may be found at: https://www.energy.gov/lpo/loan-programs-office.

FOR FURTHER INFORMATION CONTACT: Questions may be addressed to: John 
Lushetsky, Senior Advisor, Loan Programs Office, (202) 586-2678, U.S. 
Department of Energy LP 10, 1000 Independence Avenue SW, Washington DC, 
20585, or by email to: <a href="/cdn-cgi/l/email-protection#73191c1b1d5d1f06001b160700180a331b025d171c165d141c05"><span class="__cf_email__" data-cfemail="4f2520272161233a3c272a3b3c24360f273e612b202a61282039">[email protected]</span></a>. Electronic 
communications are recommended for correspondence and required for 
submission of application information.

SUPPLEMENTARY INFORMATION: Executive Order 13953 (``Executive Order 
Addressing the Threat to the Domestic Supply Chain from Reliance on 
Critical Minerals from Foreign Adversaries,'' dated September 30, 2020, 
establishes policy pertaining to lending activities by the U.S. 
Department of Energy Loan Programs Office (``LPO'') pursuant to Title 
XVII of the Energy Policy Act of 2005, as amended (42 U.S.C. 16511, et 
seq.) (``Title XVII''), and Section 136 of the Energy Independence and 
Security Act of 2007, as amended (42 U.S.C. 17013) (the ``ATVM 
Statute''), as they apply to ``Critical Minerals,'' ``Critical Minerals 
Production,'' and related activities, including activities related to 
minerals more broadly. See: https://www.whitehouse.gov/presidential-actions/executive-order-addressing-threat-domestic-supply-chain-reliance-critical-minerals-foreign-adversaries. ``Critical Minerals'' 
and ``Critical Minerals Production,'' involving thirty-five identified 
Critical Minerals, are further defined by Section 2(b) of Executive 
Order 13817 (``A Federal Strategy to Ensure Secure and Reliable 
Supplies of Critical Minerals,'' dated December 20, 2017). See: https://www.whitehouse.gov/presidential-actions/presidential-executive-order-federal-strategy-ensure-secure-reliable-supplies-critical-minerals.

Preference for Minerals, Including Critical Minerals

    Pursuant to Executive Order 13953 and Executive Order 13817, it is 
the policy of LPO to consider all eligible projects under Title XVII 
and the ATVM Statute in the context of Critical Minerals and the 
production of Critical Minerals and other minerals. Consistent with the 
policies expressed in Executive Order 13953 and 13817, it is also the 
policy of LPO to interpret the Title XVII Program and the ATVM Program 
broadly to encourage applications from potential projects involving the 
production, manufacture, recycling, processing, recovery, or reuse of 
Critical Minerals and other minerals. LPO will evaluate all 
applications on a case-by-case basis.

Title XVII Projects

    Under Title XVII, DOE may, consistent with applicable law, issue 
loan guarantees in support of projects (``Title XVII Eligible 
Projects'') that: (a) Avoid, reduce, or sequester air pollutants or 
anthropogenic emissions of greenhouse gases; (b) employ new or 
significantly improved technologies as compared to commercial 
technologies in service in the United States at the time the guarantee 
is issued; (c) attain specified emission requirements (see 42 U.S.C. 
16513(d)); and (d) fall within the following categories (see 42 U.S.C. 
16513(b) and (c)):
    1. Renewable energy systems.
    2. Advanced fossil energy technology (including coal gasification 
that attains specified emission requirements) (see 42 U.S.C.16513(d)).
    3. Hydrogen fuel cell technology for residential, industrial, or 
transportation applications.
    4. Advanced nuclear energy facilities.
    5. Carbon capture and sequestration practices and technologies, 
including agricultural and forestry practices that store and sequester 
carbon.
    6. Efficient electrical generation, transmission, and distribution 
technologies.
    7. Efficient end-use energy technologies.
    8. Production facilities for the manufacture of fuel-efficient 
vehicles or parts of those vehicles, including electric drive vehicles 
and advanced diesel vehicles.
    9. Pollution control equipment.
    10. Refineries, meaning facilities at which crude oil and other 
substances are refined into gasoline and other products.
    11. Certain gasification projects specified in 42 U.S.C. 16513(c).

Examples of Potential Minerals Projects Under Title XVII

    Minerals or Minerals Production projects that may qualify for 
support under Title XVII include, without limitation, the following:
    1. Mining, processing, or milling of Critical Minerals utilizing 
efficient end-use energy technologies (Efficient end-use energy 
technologies);
    2. Processing or refining of uranium for nuclear fuel (Advanced 
nuclear energy facilities);
    3. Processing of zirconium for cladding of uranium fuel elements 
(Advanced nuclear energy facilities);
    4. Processing of antimony for use as a neutron source in nuclear 
reactors during reactor startup (Advanced nuclear energy facilities);
    5. Renewable energy projects that produce Critical Minerals as by-
products of, or adjuncts to, power generation activities, including 
geothermal projects that produce lithium or other Critical Minerals 
(Renewable energy systems);
    6. Advanced fossil energy projects that produce or extract Critical 
Minerals, including rare earth elements, from power plant byproducts 
(including fly ash and coal refuse) (Advanced fossil energy projects); 
and
    7. Other Critical Minerals projects that meet the criteria of Title 
XVII.
    Each applicant for a loan guarantee will be required to demonstrate 
that the proposed project satisfies the statutory requirements 
necessary for the proposed project to constitute a Title XVII Eligible 
Project.

[[Page 77203]]

ATVM Projects

    Under the ATVM Statute, loans may, under applicable law, be made to 
borrowers for projects (``ATVM Eligible Projects'') that are: (a) 
Financially viable without the receipt of additional Federal funding 
associated with the proposed project; and (b) automobile manufacturers, 
ultra-efficient vehicle manufacturers, or component suppliers to pay 
the costs of: (1) Reequipping, expanding, or establishing a 
manufacturing facility in the United States to produce qualifying 
advanced technology vehicles (``ATVs'') or ``qualifying components'' 
for ATVS; and (2) engineering integration performed in the United 
States of ATVs and qualifying components.
    Under the applicable provisions of the ATVM statute, DOE must limit 
its relevant support to ``manufacturing facilities'' producing ATVs and 
``qualifying components''--which are defined as products or equipment 
designed for, and installed in, ATVs for the purpose of meeting ATV 
performance requirements.

Examples of Potential Minerals Projects Under the ATVM Statute

    Minerals or Minerals Production projects that may qualify for 
support under the ATVM Statute include, without limitation, the 
following:
    1. Processing of Critical Minerals, including lithium, nickel, 
manganese, graphite, or cobalt, for use in electric vehicle battery 
systems for ATVs;
    2. Processing or refining of aluminum, chromium, manganese, 
vanadium, or tin used for the light-weighting of ATVs;
    3. Processing or refining of platinum group metals (``PGMs''), and 
the PGM catalysts from which they are derived, for use in hydrogen fuel 
cells and fuel cell electric vehicles that are ATVs; and
    4. Processing of Critical Minerals (to include neodymium, 
praseodymium, dysprosium, and terbium), for use in permanent magnets 
and permanent magnet electric motors for application in electric drive 
motors for qualifying ATVs; and
    5. Other Critical Minerals projects that meet the criteria of the 
ATVM statute.

Early Discussion With LPO Regarding Potential Projects Is Encouraged

    It is the preference of LPO to become involved with potential 
applicants as early as possible in the development of Title XVII and 
ATVM Eligible Projects. Therefore, potential applicants are encouraged 
to contact LPO before making a formal application, and as early as 
possible in the development of a potential project. The foregoing does 
not change or modify that current application process. LPO will respond 
in writing to any inquiry from the applicant regarding the status of an 
application within ten (10) business days after the date of such 
inquiry.
    Potential applicants may inquire with LPO about opportunities for 
emerging areas involving Critical Minerals and other minerals by 
contacting LPO. For further information on the application process for 
either program, please see: https://www.energy.gov/lpo/loan-programs-office.

Preference for American Made Products

    A preference will be given to those projects with a plan to utilize 
American made products and employ American workers.

Early Engagement With LPO

    Potential applicants may inquire with LPO about opportunities for 
emerging areas involving Critical Minerals and other minerals by 
contacting LPO. For further information on the application process for 
either program, please see: https://www.energy.gov/lpo/loan-programs-office.

Disclaimer Regarding Agency Guidance

    In accordance with Executive Order 13891 (``Promoting the Rule of 
Law Through Improved Agency Guidance Documents,'' dated October 9, 
2019), the information contained in this guidance:
    (i) Does not have the force and effect of law and is not meant to 
bind the public in any way;
    (ii) is intended only to provide clarity to the public regarding 
existing requirements under the law or agency policies, except as 
authorized by law or as incorporated into a contract; and
    (iii) will not be relied on by DOE as an independent basis for an 
enforcement action or other administrative penalty. Agencies may impose 
legally binding requirements on the public only through regulations and 
on parties on a case-by-case basis through adjudications, and only 
after appropriate process, except as authorized by law or as 
incorporated into a contract.

Signing Authority

    This document of the Department of Energy was signed on November 
24, 2020, by Dong Kim, Executive Director, Loan Programs Office, 
pursuant to delegated authority from the Secretary of Energy. That 
document with the original signature and date is maintained by DOE. For 
administrative purposes only, and in compliance with requirements of 
the Office of the Federal Register, the undersigned DOE Federal 
Register Liaison Officer has been authorized to sign and submit the 
document in electronic format for publication, as an official document 
of the Department of Energy. This administrative process in no way 
alters the legal effect of this document upon publication in the 
Federal Register.

    Signed in Washington, DC, on November 24, 2020.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2020-26407 Filed 11-30-20; 8:45 am]
BILLING CODE 6450-01-P


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