Department of Defense Plans Increased Investment in Clean Energy
Client Alert | 2 min read | 08.15.24
The Department of Defense (“DoD) recently took important actions to expand and deepen its relationships with companies bringing critical energy production and storage technologies to the DoD marketplace. As one of the largest consumers of energy in the world, DoD has the scale and resources to catalyze new industries, and mission assurance increasingly requires a diverse generation mix and incorporation of advanced technologies.
To achieve those goals, DoD is creating two new programs:
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- The Office of Strategic Capital’s (OSC) loan guarantee program to scale critical national security technologies, and
- A Defense Energy Consortium (DECo) through the Air Force Office of Energy Assurance.
Both of these efforts aim to scale innovative energy technologies and make them more accessible to DoD purchasers. As a first step, DoD has issued Requests for Information soliciting comments from energy technology and other companies on how to shape these programs to make them easier to access and more effective at scaling new technologies. Crowell attorneys are available to assist clients in preparing impactful responses.
OSC Loan Guarantee Program RFI: The National Defense Authorization Act of 2024 (FY24 NDAA) provided DoD with new authorities to issue loans and loan guarantees to increase private investment in critical technologies and supply chains that support national security. These critical technologies include:
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- solar,
- wind,
- bio-based and geothermal technologies,
- advanced energy storage,
- electronic engines, and
- power grid integration.
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With these authorities and appropriations, OSC is actively building its first loan program office and is seeking industry input about how best to support that effort.
Companies, supply chains, industry associations, and financiers supporting any of these technologies should consider drafting an RFI response to help guide this new DoD office in selecting the best ways to attract and scale private capital in the current energy innovation marketplace.
The RFI is divided into two versions: for Companies and for Financiers. Responses are due October 22, 2024.
DECo RFI: The Air Force Office of Energy Assurance is seeking information to shape its competitive selection of a Consortium Manager to stand-up and manage the DECo, a public-private consortium that can work at the scale and speed necessary to help the Department of the Air Force cost-effectively address the problem of obtaining 99.9% energy resilience for all of its critical loads.
Although this RFI is primarily asking for information from companies aiming to manage the DECo, the RFI indicates that the Air Force will also consider responses from companies seeking to participate in the consortium by delivering energy technology capabilities and expertise to the Department of the Air Force.
The RFI is available here. Responses are due Sept. 5, 2024.
Contacts
Senior Counsel, Crowell & Moring LLP | Vice President of Growth & Strategy, Crowell GovCon Strategies LLC
- Washington, D.C.
- D | +1.202.624.2697
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