The Department of Energy (“DOE”) Loan Guarantee Program provides loan guarantees under Title XVII of the Energy Policy Act of 2005 to eligible energy projects in response to solicitations issued by the DOE. Congress provided additional support for the Loan Guarantee program by appropriating $6 billion for credit subsidy costs pursuant to the American Recovery and Reinvestment Act of 2009.
DOE Extends Part I Submission Deadline for July 2009 Solicitation
On Thursday, August 5, 2010, Secretary of Energy Steven Chu announced that the DOE is extending the deadline for Part I applications under its July 2009 solicitation. The July 2009 solicitation targets projects which utilize energy efficiency, renewable energy technology or advanced transmission and distribution technologies. Part I applications for this solicitation were originally due by August 24, 2010. Last Thursday, Secretary Chu announced that this date would be pushed back to October 5, 2010 in an effort by the DOE to bring “as many commercial renewable projects online as possible to help us meet our clean energy goals and generate more jobs.” The Part II application deadline remains December 31, 2010.
Congress Passes a Bill Which Will Cut Funding to Title XVII if Signed by the President
One potential impediment to projects hoping to obtain loan guarantees from the DOE under this extended deadline is the Education Jobs and Medicaid Assistance Act (the “Act”). On Tuesday, August 10, 2010, the House of Representatives passed the Act which had previously passed in the Senate on August 5, 2010. The Act creates jobs for teachers, addresses tax loopholes and other items. The Act also rescinds $1.5 billion dollars of funding made available to the Title XVII Innovative Technology Loan Guarantee Program through the American Recovery and Reinvestment Act of 2009. This is the second time funding for the Loan Guarantee program has been reappropriated. The first time occurred in 2009, when $2 billion dollars of funding was reallocated to cover the cost of the Cash for Clunkers program. The Act was signed into law by President Barack Obama on August 7, 2009.
To see a copy of Secretary Chu’s announcement, click here.