WASHINGTON, DC – The U.S. Department of Energy (DOE)
today announced plans to issue loan guarantee solicitations in two
stages this summer for up to $38.5 billion for projects that employ
advanced technologies that avoid, reduce or sequester emissions of air
pollutants and greenhouse gases. This will mark the second and third
rounds of solicitations for DOE’s Loan Guarantee program, which
encourages the development of new energy technologies and is an
important step in paving the way for clean energy projects.
In a Fiscal Year (FY) 2008 loan guarantee implementation plan sent
to Congress, DOE outlined plans to issue its second round of
solicitations concurrently no later than June 2008 for efficiency,
renewable energy and electric transmission projects (up to $10
billion); nuclear power facilities (up to $18.5 billion); and nuclear
facilities for the “front-end” of the nuclear fuel cycle, including
uranium enrichment (up to $2 billion). Later this summer, DOE intends
to issue a third solicitation for loan guarantee applicants for
advanced fossil energy projects (up to $8 billion).
“DOE’s Loan Guarantee program aims to accelerate the
commercialization of innovative, environmentally-friendly technologies
that will have a real impact on ensuring clean, affordable and reliable
supplies of energy,” David Frantz, Director of DOE’s Loan Guarantee
Office, said. “We intend to move forward quickly and deliberately to
issue solicitations, conduct a thorough financial and technical review
and support these truly innovative technologies that hold great promise
for our nation’s energy security.”
Prior to the issuance of the upcoming $10 billion solicitation for
projects in the efficiency, renewable energy and electric transmission
areas, the Department intends to issue a Request for Information to
solicit input from stakeholders concerning areas of particular
technology focus and interest in these areas. These technologies could
include renewable energy and energy efficient technologies, including
advanced transmission and distribution technologies, hydrogen and fuel
cell technologies, energy efficient building technologies and
applications, battery development, alternative vehicle technologies,
and ocean wave/tidal, solar, wind, geothermal and biomass technology
development.
Selection criteria for the clean energy projects under these
solicitations will focus on the avoidance of emissions of greenhouse
gas emissions and other air pollutants; the speed at which technologies
can be commercialized; cost-saving potential for consumers; the
prospect of repayment; and the potential for long-lasting success of
these technologies in the marketplace.
Today’s announcement meets the statutory requirement in the
Consolidated Appropriations Act of 2008 to submit a loan guarantee
implementation plan 45 days prior to the execution of a new loan
guarantee solicitation.
Following funding and authorization for the program in February
2007, DOE has made significant progress, including conducting a
thorough review of 143 pre-applications received pursuant to DOE’s
first solicitation in August 2006 and inviting sponsors of 16 projects
to submit full applications. These 16 projects include six biomass
projects, three advanced fossil energy projects, two industrial energy
efficiency projects, two solar energy projects, one electricity
delivery and energy reliability project, one hydrogen project, and one
alternative fuel vehicles project.
Last year, DOE also issued final implementing regulations for the
Loan Guarantee program; established a Credit Review Board to make
recommendations to the Secretary of Energy on loan guarantees; named an
office director and technical and financial experts to work in the Loan
Guarantee program office; and developed guidelines for the financial
and technical review of loan guarantee applications.
DOE’s Loan Guarantee program, authorized by Title XVII of the Energy
Policy Act of 2005 (EPAct), aims to encourage early commercial use of
new or significantly improved technologies in energy projects. Loan
guarantees issued by DOE, and backed by the full faith and credit of
the United States government, will encourage the development of
projects that employ new technologies that avoid, reduce, or sequester
air pollutants and greenhouse gases. Projects supported by loan
guarantees will help fulfill President Bush’s goal of reducing our
reliance on imported sources of energy by diversifying our nation’s
energy mix and increasing energy efficiency.
Learn more about the Department’s Loan Guarantee Program.
Loan Guarantee Program - Implementation Plan April 2008 (PDF)
Media
contact(s):
Megan Barnett, (202) 586-4940
Source: http://www.doe.gov/news/6152.htm
