Heinrich Demands Answers from DOE on Decision to Terminate Loan Commitment for Grain Belt Express

WASHINGTON — U.S. Senator Martin Heinrich (D-N.M.), Ranking Member of the U.S. Senate Energy and Natural Resources Committee, sent a letter to U.S. Department of Energy (DOE) Secretary Chris Wright demanding answers on the decision to abruptly terminate a conditional loan guarantee for the Grain Belt Express, a transmission project that was slated to save families over $52 billion in energy costs, create over 4,000 jobs, and meet surging energy demands across the country.  

Heinrich’s letter comes just a month after Wright himself affirmed in a Committee hearing that, “the United States needs to build more energy infrastructure of all kinds and certainly including transmission lines.” Heinrich wrote, “given this need and the length of time it takes to complete a transmission project, it is inexplicable that the Department would terminate the Grain Belt Express after more than a decade in the making.” 

“I write to request information regarding the Department of Energy’s decision to terminate the conditional loan guarantee made to the Grain Belt Express—an interregional transmission project that has been in development for more than a decade,” Heinrich began.  

“The Grain Belt Express transmission project is designed to meet the surging energy demands facing the country. Once complete, the project will deliver clean, affordable energy generated mostly from wind farms in Kansas across the Midwest—spanning four states, stretching over 578 miles, and connecting three regional grids,” Heinrich continued, stressing how the transmission project would meet surging energy demands, cut energy costs, and create jobs. “The project is expected to deliver 5 gigawatts of power to Missouri, Indiana, and the Mid-Atlantic and save consumers more than $52 billion over 15 years. Additionally, the project is a jobs creator. The project is expected to create over 4,000 jobs and has reportedly already secured buyers for the power it expects to deliver.”  

“A conditional commitment represents a legally binding contract, on behalf of the U.S. Government, to deliver obligated funds. Not only am I concerned that this move is illegal, but I am concerned that the federal government is eroding what little trust the private sector has in our ability to be reliable partners,” Heinrich pressed.  

“Transmission lines are not built overnight and can take over a decade to complete,” noted Heinrich. “Given this need and the length of time it takes to complete a transmission project, it is inexplicable that the Department would terminate the Grain Belt Express after more than a decade in the making.”  

Heinrich concluded the letter by requesting answers from DOE on why it determined  that the conditions for a loan guarantee could not be met, including which specific conditions were unmet and why, how long the review took and what it considered, whether an analysis was conducted on the termination’s impact on energy reliability, prices, and jobs, and a full list of all closed loans and conditional commitments currently under DOE review. 

Read the full letter here and below: 

I write to request information regarding the Department of Energy’s decision to terminate the conditional loan guarantee made to the Grain Belt Express—an interregional transmission project that has been in development for more than a decade. The Department’s decision to abruptly terminate the conditional loan guarantee raises serious questions about the legality of the termination and this Administration’s commitment to bringing down energy costs for millions of Americans. The decision to cancel the project’s loan guarantee appears to not have been based upon the merits of the project but rather comes as the result of a nonsensical witch hunt.  
 
The Grain Belt Express transmission project is designed to meet the surging energy demands facing the country. Once complete, the project will deliver clean, affordable energy generated mostly from wind farms in Kansas across the Midwest—spanning four states, stretching over 578 miles, and connecting three regional grids. The project is expected to deliver 5 gigawatts of power to Missouri, Indiana, and the Mid-Atlantic and save consumers more than $52 billion over 15 years. Additionally, the project is a jobs creator. The project is expected to create over 4,000 jobs and has reportedly already secured buyers for the power it expects to deliver. Grain Belt  

Express has also awarded $1.7 in contracts to help develop the transmission line.  
 
Recognizing the importance of clean, reliable, and affordable energy, in November 2024, the Department’s Loan Program’s Office announced a conditional commitment for a loan of $4.9 billion to the Grain Belt Express project. At the time, the Department explained its decision to extend the conditional commitment, stating, “[d]eveloping [high-voltage direct current] transmission is essential to helping us add more energy to the grid faster and expanding transmission capacity across the nation.” However, just days ago and without explanation, the Department announced that it had terminated the conditional loan guarantee, contending “the conditions necessary to issue the guarantee are unlikely to be met and it is not critical for the federal government to have a role in supporting this project.” I am troubled by the Department’s decision to terminate the conditional commitment. A conditional commitment represents a legally binding contract, on behalf of the U.S. Government, to deliver obligated funds. Not only am I concerned that this move is illegal, but I am concerned that the federal government is eroding what little trust the private sector has in our ability to be reliable partners.   
 
Transmission lines are not built overnight and can take over a decade to complete. It is no secret that the country is in dire need of transmission infrastructure. At a hearing last month, you conceded as much, stating, “the United States needs to build more energy infrastructure of all kinds and certainly including transmission lines.” Given this need and the length of time it takes to complete a transmission project, it is inexplicable that the Department would terminate the Grain Belt Express after more than a decade in the making.  

To better understand the Department’s decision to terminate the Grain Belt Express conditional loan guarantee, please provide the following information by August 12, 2025:  

1. In announcing the termination of the conditional loan guarantee, the Department stated, “[a]fter a thorough review of the project’s financials, DOE found that the conditions necessary to issue the guarantee are unlikely to be met.” What conditions are unlikely to be met and why have you come to that determination? In responding to this question, please also provide the following information:  

1. A copy of the conditions precedent established in the loan agreement;  

2. A detailed and justified explanation of the specified conditions precedent that the Department has determined the project to have failed;  

3. A copy of the agreed upon timeline that the project had to meet the conditions precedent and a confirmation of the amount of time remaining for the project to meet its obligations; and   

4. The length of time the Department conducted the review and the factors it considered.  

2. Please describe whether the Department conducted an analysis to understand the implications on energy reliability, prices, and jobs before terminating the conditional commitment. If the Department did conduct such an analysis, please provide a copy of the analysis to the Committee. If the Department did not, please explain why the decision was made to not conduct such an analysis.   

3. According to the Department, it is “conducting a review of every applicant and borrower – including the nearly $100 billion in closed loans and conditional commitments LPO made between Election Day 2024 to Inauguration Day 2025.” Please provide a comprehensive list of all closed loans and conditional commitments the Department is reviewing. 

Should you have any questions, please contact my staff at (202) 224-4971.