U.S. Department of Energy - Loan Guarantee Program (Federal)

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Summary

Last modified on December 17, 2014.

Financial Incentive Program

Place United States

Name U.S. Department of Energy - Loan Guarantee Program
Incentive Type Federal Loan Program
Applicable Sector Commercial, Industrial, Nonprofit, Schools, Local Government, State Government, Agricultural, Institutional, Any non-federal entity, Manufacturing Facilities
Eligible Technologies Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind, Biomass, Hydroelectric, Geothermal Electric, Fuel Cells, Daylighting, Tidal Energy, Wave Energy, Ocean Thermal, Biodiesel, Fuel Cells using Renewable Fuels, Yes; specific technologies not identified
Active Incentive Yes

Implementing Sector Federal
Energy Category Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs
Amount Varies (program focuses on projects with total project costs over 25 million)















Maximum Incentive Not specified









Terms Full repayment is required over a period not to exceed the lesser of 30 years or 90% of the projected useful life of the physical asset to be financed
Program Administrator U.S. Department of Energy
Website http://www.lgprogram.energy.gov
Date added to DSIRE 2008-09-12
Last DSIRE Review 2014-11-20



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

Section 1703 of Title XVII of the Energy Policy Act (EPAct) of 2005 created the Department of Energy's (DOE's) Loan Guarantee Program. The program was reauthorized and revised by the American Recovery and Reinvestment Act (ARRA) of 2009 by adding Section 1705 to EPAct. The 1705 Program was retired in September 2011, and Loan Guarantees are no longer available under that authority. DOE, however, still has authority to issue Loan Guarantees under the old Section 1703 Program.
Under Section 1703, DOE is authorized to issue loan guarantees for projects with high technology risks that "avoid, reduce or sequester air pollutants or anthropogenic emissions of greenhouse gases; and employ new or significantly improved technologies as compared to commercial technologies in service in the United States at the time the guarantee is issued." Loan guarantees are intended to encourage early commercial use of new or significantly improved technologies in energy projects. The loan guarantee program generally does not support research and development projects.
Loan guarantees are provided in response to open solicitations. A solicitation for Renewable Energy Projects and Energy Efficiency Projects was issued in July 2014, with a final Part I application due date of December 2, 2015. Up to $2.5 billion is available for projects in renewable energy, efficient end-use, and efficient generation, transmission, and distribution technologies. See the program website for more details on eligibility and the application process.

Section 1703 requires either an appropriation to cover the Credit Subsidy Cost (the expected long term liability to the Federal Government for providing the loan guarantee), or payment of the Credit Subsidy Cost by the borrower. A credit-based interest rate spread will be added to certain loans receiving a 100% loan guarantee from DOE and financing from the Federal Financing Bank. Rates and more information are available here.




Incentive Contact

Contact Name Public Information - DOE
Department U.S. Department of Energy

Address 1000 Independence Avenue, SW

Place Washington, District of Columbia
Zip/Postal Code 20585-0121
Phone (202) 586-8336


Email LGProgram@hq.doe.gov
Website http://www.lgprogram.energy.gov
     
     

Authorities (Please contact the if there are any file problems.)

Authority 1: 42 USC § 16511 et seq.




Authority 2: 10 CFR 609




















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"