Montana Renewables’ $1.44 billion loan is back on after a federal funding freeze, according to Sen. Steve Daines.

The Republican lawmaker’s office said that the U.S. Department of Energy’s loan that was approved under the Biden Administration had been on hold, but was unfrozen after he “pressed the White House and highlighted its importance in securing our nation’s energy dominance.

“Energy security is national security. Montana Renewables and the Calumet refinery provide high-paying jobs, boost our economy and provide efficient biofuel production. I am glad to see that President Trump’s DOE is focused on bolstering made-in-America energy and I’ll continue to fight for more ways to support Montana’s mining and energy industries,” Daines said in a release.

Calumet requesting new tax abatement from Cascade County on $6.1 million of equipment

Montana Renewables is a subsidiary of Calumet Montana Refining.

Calumet announced on Jan. 10 that it had closed on its $1.44 billion guaranteed loan with the U.S. Department of Energy. The $1.67 billion loan is $1.44 billion of principal and $233 million capitalized interest, according to the DOE.

Initial loan proceeds of $782 million were expected to be funded in January for eligible expenses previously incurred by Montana Renewables, according to a company release.

In a Jan. 28 release, Calumet said that it had been informed by the U.S. Department of Energy that the funding “will undergo a tactical delay to confirm alignment with White House priorities. The company was informed that the delay should be days or weeks.”

Calumet, BNSF proposing train track expansion; city concerned about public access to wastewater plant, West Bank Park

“We are well aligned with White House priorities to support domestic agriculture, energy security, technical innovation and energy independence, all of which play a role in the tremendous bipartisan support this loan has received since its inception,” Todd Borgmann, Calumet CEO said in the Jan. 28 release. “The recently issued executive order specifically highlights the importance of biofuels to our nation’s domestic energy policy and energy independence, and we look forward to a quick review confirming that we are aligned with the Administration’s goals.”

On Jan. 31, Calumet said they had no further updates beyond the press release.

The loan had been paused while the Trump administration reviewed Inflation Reduction Act spending.

Daines voted against the IRA in 2022.

The DOE has not responded to a request for comment on the Calumet loan or whether other impacted funding had resumed.

But it’s the first previously approved energy project loan to be reapproved under Trump and an Energy spokesperson told The Washington Post that the department was reviewing other loans, “to ensure all activities are consistent with the law and in accordance with President Trump’s executive orders and priorities.”

The loan will fund the construction and expansion of the renewable fuels facility owned by Montana Renewables, an unrestricted subsidiary of Calumet.

Calumet closes on $1.44 billion federal loan; tax appeal cases pending at state board

Calumet is planning to make another $150 million equity investment with funds it currently holds and the balance of the guaranteed loan proceeds is held in a delayed draw for construction.

Montana Renewables expects the next batch of loan funds to be disbursed during construction beginning in 2025 through the planned completion of the sustainable aviation fuel facility in 2028, according to Calumet.

The DOE loan guarantee will allow the company to expand it’s sustainable aviation fuel capacity to 300 million gallons per year and 330 million gallons of combines SAF and renewable diesel, according to Calumet.

Montana Renewables, Calumet have pending tax appeals before state board [2024]

The planned expansion includes a second renewable fuels reactor, which will allow about half of the 300-million-gallon SAF capability to be online by 2026, according to Calumet; debottlenecking of existing units, installation of SAF blending and logistics assets, increased renewable hydrogen production, cogeneration for renewable electricity and steam, and on-site water treatment and recycling capabilities.

Calumet applied to Cascade County in December for a tax abatement on $6.1 million worth of equipment installed or put into service in 2024.

County approves Calumet tax abatement [2022]

It’s a new tax abatement allowed under a section of state law that was amended by the 2023 Legislature that includes renewable fuels as an eligible abatement.

GFPS board approves request to access protested Calumet taxes [2024]

The city and county approved tax abatements for Calumet in 2022.

Under the law changes, only the county has the authority to make the decision though it will impact city and state tax revenues; the abatement cannot be denied and county commissioners are only able to determine whether the abatement is 80, 90 or 100 percent.

County board upholds state’s revised tax valuation for Calumet [2024]

Calumet currently have several pending tax appeals at the Montana Tax Appeal Board.

Last fall, county property tax bills were delayed due to changes in Calumet’s tax valuation for 2024 that lowered the taxable values of the city, county and school district jurisdictions by about $4 million.

Calumet has two pending appeals before the Montana Tax Appeal Board for 2022 and 2023 taxes and said in Oct. 18 filings that it is still considering whether to protest its 2024 taxes.

Calumet considers appeal of 2024 taxes

Rina Sanderson, administration/legal assistant for the board, told The Electric on Jan. 14 that the board hasn’t yet scheduled a hearing as Calumet and the Montana Department of Revenue are in discussion on the cases, but was expecting an update in a few weeks.

She told The Electric on Feb. 10 that Montana Renewables had requested, and the board granted, to vacate the hearing scheduled for May.

They’re scheduled to have a conference call on Feb. 13 to set a new hearing date, she said.

Calumet announces $1.4 billion federal loan for expansion as regional officials question wastewater, taxes [2024]

Montana Renewables, Calumet’s subsidiary, has a pending appeal before the board of a Montana Department of Environmental Quality in which it refutes DEQ’s decision to certify eight percent of the facility as pollution control equipment, and thereby tax exempt under state law, as opposed to its request to have the entire facility certified as tax exempt.

Under state law, air and water pollution and carbon capture equipment certified as such by DEQ is tax exempt.