Stimulus Bill Creates More Than $60 Billion of Loan Guarantee Opportunities Including for Previously Ineligible Renewable and Transmission Projects
By Jeffrey Schroeder, Eric Pogue and Alan Eskandari
Title XVII of the Energy Policy Act of 2005 (EPAct 2005) authorized the Department of Energys (DOE) establishment of a loan guarantee program for projects that employ new or significantly improved technologies and avoid, reduce, or sequester air pollutants or greenhouse gases (the Innovative Technology LG Program). Projects for which DOE may grant loan guarantees under the Innovative Technology LG Program include advanced nuclear energy facilities, renewable energy systems, and advanced fossil energy technology (including coal gasification facilities). As discussed below, DOE has issued solicitations for loan guarantee applicants for such projects totaling $40.5 billion; however, to date no loan guarantees have been entered into. The recently passed American Recovery and Reinvestment Act of 2009 (the Act), which was signed into law by President Obama on February 17, 2009, expands Title XVII of EPAct 2005 (Title XVII) to include a new temporary loan guarantee program to stimulate development of renewable energy, electric power transmission projects, and biofuel projects including certain projects that were previously ineligible under the Innovative Technology LG Program in the next two and a half years (the Temporary LG Program).