Federal Loan Guarantees for Innovative Energy Technologies (81.126)

Program

81.126 Federal Loan Guarantees for Innovative Energy Technologies

Federal Agency

Agency: Department of Energy

Authorization

Energy Policy Act of 2005, PL 109-58, 119 Stat 1117-1122, Title XVII, 42 USC 15801; August 8, 2005. Energy Independence and Security Act of 2007, PL 110-140, Section 136.

Program Number

81.126

Last Known Status

Active

Objectives

To encourage, through the use of Federal loan guarantees, early commercial use in the United States of new or significantly improved technologies in energy projects that; 1) avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse gases; and (2) employ new or significantly improved technologies as compared to commercial technologies in service in the United States at the time the guarantee is issued. (42 U.S.C. 16513(a)). Also, under section 1705, guarantees can be made for rapid deployment of certain renewable and electric transmission projects. For ATVM, issue loans to automobile and part manufacturers for cost of re-equipping, expanding, or establishing manufacturing facilities in the United States to produce advanced technology vehicles or qualified components, and for engineering integration costs.

Types of Assistance

Direct Loans; Guaranteed/Insured Loans

Uses and Use Restrictions

The assistance provides Federal loan guarantees for technologies 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 and which provide a reasonable assurance of repayment. Further Program information may be found at http://www.lgprogram.energy.gov.
Projects that may be eligible for a loan guarantee include: Renewable energy systems including wind, photovoltaics, biomass and hydropower projects; Advanced fossil energy technology including gasification, integrated gasification combined cycle, industrial gasification, petroleum coke gasification and coal to oil liquefaction projects; Efficient end use technologies; Hydrogen fuel cell technology for residential, industrial, or transportation applications; Advanced nuclear energy facilities; Carbon capture and sequestration practices and technologies, including agricultural and forestry practices that store and sequester carbon; Efficient electrical generation, transmission, and distribution technologies; Efficient end-use energy technologies; Production facilities for fuel efficient vehicles, including hybrid and advanced diesel vehicles; Pollution control equipment; and Refineries, meaning facilities at which crude oil is refined into gasoline. For ATVM, issue loans to automobile and part manufacturers for cost of re-equipping, expanding, or establishing manufacturing facilities in the United States to produce advanced technology vehicles or qualified components, and for engineering integration costs. See above. The term of an obligation shall require full repayment of principle and interest on the Guaranteed Obligations and other project debt over a period of up to the lesser of 30 years or 90 percent of the projected useful life of the project's major physical assets as calculated in accordance with generally accepted accounting principles and practices. The tenor of ATVM loans varies from project to project.

Eligibility Requirements

Applicant Eligibility

Any corporation, company, partnership, association, society, trust, joint venture, joint stock company, or governmental nonfederal entity, that has the authority to enter into, and is seeking, a loan guarantee for a loan or other debt obligation of an Eligible Project. For ATVM loans, automobile manufacturers and parts suppliers are potentail recipients. See the www.atvmloan.energy.gov website for details.

Beneficiary Eligibility

Small businesses, profit organizations, quasi-public nonprofits, public institutions and interstate, intrastate, State and local governments will benefit from the loan guarantee program. For ATVM, DOE has promulgated regulations defining the eligibility requirements for automobile manufacturers which are available on the www.atvmloan.energy.gov website.

Credentials/Documentation

No Credentials or documentation are required. This program is excluded from coverage under OMB Circular No. A-87.

Application and Award Process

Preapplication Coordination

Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedure

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Application procedures for a Department of Energy Title XVII loan guarantee are unique to each solicitation issued by the Department. Potential applicants should only apply for a loan guarantee under the specific funding opportunity announcement posted on the Federal Government website at http://www.fedconnect.net. For additional information, see final regulations, 10 CFR Part 609, Loan Guarantees for Projects That Employ Innovative Technologies; Final Rule, published on October 23, 2007. For ATVM loans, the application procedure is also detailed in each solicitation. See the www.ATVMloan.energy.gov website for details.

Award Procedure

Award Procedures are identified in the individual solicitations for both LGPO and ATVM.

Except for division C of Public Law 108-324, the Secretary shall make guarantees or loans under this or any other Act for projects on such terms and conditions as the Secretary determines, after consultation with the Secretary of the Treasury.

Deadlines

Not Applicable.

Range of Approval/Disapproval Time

The Ranges of approval/disapproval times are identified in individual solicitations.

Appeals

Not Applicable.

Renewals

Not Applicable.

Assistance Considerations

Formula and Matching Requirements

Statutory formulas are not applicable to this program.
Matching Requirements: For the LGPO and Section 1703 guarantees, this is a "self-pay" program. Applicants will pay the subsidy costs as determined by the credit subsidy calculation. Also, fees will be charged to recover DOE's administrative costs in managing the Loan Guarantee Program. A fee schedule will be determined. No guarantee shall be made unless: (1) an appropriation for the cost has been made; or (2) the Secretary has received from the borrower a payment in full for the cost of the obligation and deposited the payment into the Treasury. (42 U.S.C. 16512.) Section 1705 guarantees have appropriated funds for the credit subsidy but applicant's and awardees are subject to additional fees during the application process and after award. See the solicitations at www.lgprogram.energy.gov for details. For ATVM Section 136 loans, there is no self pay for credit subsidy.
MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

The term of an obligation shall require full repayment of principle and interest on the Guaranteed Obligations and other project debt over a period of up to the lesser of 30 years or 90 percent of the projected useful life of the project's major physical assets as calculated in accordance with generally accepted accounting principles and practices. Tenor may be less for the ATVM loans. See the following for information on how assistance is awarded/released: Except for division C of Public Law 108-324, the Secretary shall make guarantees or loans under this or any other Act for projects on such terms and conditions as the Secretary determines, after consultation with the Secretary of the Treasury.

Post Assistance Requirements

Reports

No program reports are required. The terms and conditions for each loan or guarantee will contain a schedule of all required reports. This includes any ARRA Section 1512 reporting requirements. The terms and conditions for each loan or guarantee will contain a schedule of all required reports. The terms and conditions for each loan or guarantee will contain a schedule of all required reports. The terms and conditions for each loan or guarantee will contain a schedule of all required reports and performance monitoring.

Audits

This program is excluded from coverage under OMB Circular No. A-133. Costs incurred are subject to audit throughout the guarantee period and before final close-out. The extent and frequency of audits depend on the size of the guarantee and the specific guarantee provisions. Similar provisions apply to any ATVM loans.

Records

A recipient of a guarantee or loan shall keep such records and other pertinent documents as the Secretary shall prescribe by regulation, including such records as the Secretary may require to facilitate an effective audit. The Secretary and the Comptroller General of the United States, or their duly authorized representatives, shall have access, for the purpose of audit, to the records and other pertinent documents.

Program Accomplishments

Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available Fiscal Year 2011: No Current Data Available

Financial Information

Account Identification

89-0224-0-1-251; 89-0224-0-1-271; 89-0208-0-1-271 - Title 17, Innovative Technology Loan Guarantee Program, Recovery Act.

Obligations

(Guaranteed/Insured Loans) FY 08 $0; FY 09 est $0; FY 10 est $0 - In addition to our FY09 authority, the Loan Guarantee Program will also support "the rapid deployment of renewable energy and electric power transmission projects, the Secretary may make loan guarantees for projects that commence construction not later than September 30, 2011", using $4 billion in appropriated credit subsidy cost authority.

Range and Average of Financial Assistance

The value of the loan or guarantee will be determined on a project by project basis.

Regulations, Guidelines and Literature

The following list represents an overview of regulations, guidelines, and literature associated with the loan guarantee program. Solicitation Number: DE-PS01-06LG00001, - Loan Guarantee Solicitation Announcement, - Federal Loan Guarantees for Projects that Employ Innovative Technologies in Support of the Advanced Energy Initiative, Available at: http://www.lgprogram.energy.gov/Solicitationfinal.pdf Guidelines for Proposals Submitted in Response to the first Solicitation under Title XVII of the Energy Policy Act of 2005, Available at: http://www.lgprogram.energy.gov/FinalGuidelines.pdf. - Final Regulations - Final regulations were published in the Federal Register, 10 CFR 609, Loan Guarantees for Projects That Employ Innovative Technologies; Final Rule, on October 23, 2007. All subsequent solicitations are also on the website identifiedy above for LGPO and at www.atvmloans.energy.gov for ATVM.

Related Programs

Not Applicable.

Information Contacts

Regional or Local Office

None.

Headquarters Office

Loan Guarantee Program Office 1000 Independence Ave, SW, CF 1.3, Washington, District of Columbia 20585 Email: lgprogram@hq.doe.gov Phone: (202) 586-8336

Web Site Address

http://www.lgprogram.energy.gov

Examples of Funded Projects

Not Applicable.

Criteria for Selecting Proposals

Refer to solicitation and guidelines for the criteria to be utilized.