On August 10, 2010, the Department of Energy (“DOE”) issued a new loan guarantee solicitation for “Projects that Manufacture Commercial Technology Renewable Energy Systems and Components” (the “Solicitation”). The Solicitation is issued in support of Section 1705 of Title XVII of the Energy Policy Act of 2005. DOE will make available up to $750,000,000 to pay credit subsidy costs of loan guarantees issued under the Solicitation. The Solicitation has a First Part I Submission due date of September 30, 2010 and a Last Part I Submission due date of November 30, 2010. Part II Applications are due first on November 30, 2010 and last on January 31, 2011.
In order to be eligible, projects under this Solicitation must: (1) manufacture commercial technology products that support generation of electricity or thermal energy from renewable resources; (2) have project costs greater than $75,000,000; (3) be able to obtain a rating of ‘BB’ or better from Standard & Poor’s or Fitch or ‘Ba2’ or better from Moody’s (without the benefit of any DOE guarantee or other credit support); (4) create or retain jobs in the United States; and (5) meet all applicable requirements of Title XVII of the Energy Policy Act of 2005, including Section 1705, the Solicitation and the Recovery Act. Examples of the types of projects which may be eligible include: wind energy component or systems manufacturing facilities; solar photovoltaic (PV) component or system manufacturing facilities; concentrated solar power component or system manufacturing facilities; and hydropower component or system manufacturing facilities.
It is important to note that in order to comply with the Recovery Act, a project must “commence construction” on or before September 30, 2011. In order to “commence construction,” the project developer must (i) have all pre-construction engineering and design completed, have all licenses, permits and environmental clearances, and have engaged all contractors and ordered all equipment and supplies so that physical construction of the project can begin and proceed to completion and (ii) have commenced physical construction at the primary site of the project.
For more information or questions regarding the “Projects that Manufacture Commercial Technology Renewable Energy Systems and Components” Solicitation or any related topic, please contact Todd Coles in our Washington, D.C. office at 202-274-2810 or Todd.Coles@troutmansansders.com.
To see a copy of the Solicitation, click here.