Early Commercial Use
Title XVII of EPAct05 provides the basis of DOE's program. This title provides broad authority for DOE to guarantee loans that support early commercial use of advanced technologies, if "there is reasonable prospect of repayment of the principal and interest on the obligation by the borrower." Loan guarantees will be another tool that DOE will use to promote commercial use of innovative technologies. This tool is targeted at early commercial use only, not energy research, development, and demonstration programs.DOE believes that accelerated commercial use of new or improved technologies will help to sustain economic growth, yield environmental benefits, and produce a more stable and secure energy supply.
The US Department of Energy is expected to open the window in 2009 to apply for federal loan guarantees on loans to wind, solar, geothermal, biomass and other renewable energy projects that use commercially proven technologies.
In the first round, the Department evaluated loan guarantee pre-applications for projects that employed technologies in the following areas:
2. Hydrogen
3. Solar
4. Wind and Hydropower
5. Advanced Fossil Energy Coal
6. Carbon Sequestration practices and technologies
7. Electricity Delivery and Energy Reliability
8. Alternative Fuel Vehicles
9. Industry Energy Efficiency Projects
10. Pollution Control Equipment
Financial Institution Partnership Program (FIPP)
This new program--called the "Financial Institution Partnership Program" or "FIPP" because of the key role played by private lenders-- differs substantially from the prior program that guarantees repayment of loans to projects that use innovative technologies. It will use radically different processes than those used so far to apply, evaluate, rank and award guarantees for projects.
The department will release a set of rules for the loan guarantee program at the same time it opens the window--and anyone who wants to apply is expected to have negotiated his or her loan first with a bank or insurance company and then the lender will apply to DOE for a guarantee.
Department of Energy
1000 Independence Ave SW, Washington, DC 20585
www.lgprogram.energy.gov