The Department of Energy is working with Bank of America to evaluate the market value of its clean energy loans, according to DOE officials, a move that could signal interest in selling the loans and mark a major shift for the federal government.
DOE political appointee Travis Boeker requested a meeting with Bank of America employee Loren Harman, according to an email exchange viewed by POLITICO’s E&E News. Harman then proposed a zoom meeting for May 6.
“The white house has asked us to evaluate what the loans in the portfolio would be worth in the market,” Boeker said in the exchange.
While the exchange identifies the author only as “Travis,” a DOE staffer who requested anonymity for fear of retribution said the individual is Boeker.
DOE’s Loan Programs Office expanded dramatically under President Joe Biden, ultimately finalizing roughly $61 billion in loans and loan guarantees. The office, which typically makes loans to energy projects that can’t get traditional financing from private institutions, closed deals in the final weeks of the last administration on electric vehicles, solar power and batteries, critical mineral processing, and other energy projects.
Experts have suggested the Trump administration could use the loan office to boost technologies like geothermal energy, nuclear power plants, and fossil fuels like coal. DOE political officials continue to tout the LPO.
But the DOE staffer said the outreach to the private sector signals the department’s interest in shuttering the office.
“Without loans or a portfolio to monitor then you can shut the office down,” the staffer told E&E News.
The Energy Policy Act of 2005, signed by Republican President George W. Bush, initially authorized DOE to make loans for clean energy.
The mechanics of selling government loans are unclear. Private banks often sell loans to other private institutions to free up capital and for other purposes. Banks that purchase LPO loans, if allowed, will likely want to change the terms to benefit the bank, which could impact the viability of projects.
The White House budget template released Friday makes big cuts to DOE but does not specifically target the LPO. Still, experts say the LPO is a priority for cuts, along with the Office of Clean Energy Demonstrations and other offices.
Boeker joined the LPO in April as a “special government employee — credit expert,” per his LinkedIn page. His page still lists him as a board member for Liberty Resources II, an oil and gas exploration firm. Energy Secretary Chris Wright was executive chair of Liberty Resources before resigning to lead DOE.
Lane Genatowski, a DOE veteran in President Donald Trump’s first term, is now the DOE’s LPO director. DOE did not respond for comment. Bank of America declined to comment.
Greg Beard, who was CEO of Stronghold Digital Mining until March this year, also joined DOE in April, according to LinkedIn. In the exchange with Harman viewed by E&E News, Boeker says he’s “doing a stint at the DOE helping Greg and the energy secretary reorg the LPO program.”
The “Greg” referenced in the exchange is Beard, according to DOE staffers.
“Travis and Greg Beard are brand new. They haven’t done any vetting of our portfolio; they’re just looking for quick wins,” said another DOE staffer granted anonymity to speak freely. “They’re looking to show they’re cutting for the sake of cutting.”
U.S. law prohibits federal officials from disclosing “business-sensitive information” with potential loan purchasers, according to the DOE.
