The first application due date under each solicitation is September 14, 2009.
The U.S. Department of Energy (DOE) announced on July 29, 2009, two loan guarantee solicitations, the first to support loans for renewable energy and electric power transmission projects and cutting-edge biofuel projects that employ a new or significantly improved technology that is not a commercial technology, and the second to support loans for large transmission infrastructure projects in the United States that use commercial technologies and begin construction by September 30, 2011.
The lending authority under the solicitations includes up to $2 billion in subsidy costs to support loans for renewable energy and electric power transmission projects, up to $500 million in subsidy costs for cutting-edge biofuel projects, and up to $750 million in subsidy costs for large transmission infrastructure projects in the United States that use commercial technologies. Funding to cover subsidy costs for the loan guaranties is provided by the American Recovery and Reinvestment Act (ARRA). The first application due date under each solicitation is September 14, 2009.
The first solicitation focuses on projects ready for commercial development that avoid, reduce or sequester air pollutants or anthropogenic emissions of greenhouse gases, and employ "new or significantly improved technologies" as compared to "commercial technology" (generally, technology that has been used for at least five years in at least three commercial projects in the United States in the same general application as in the proposed project). The following are examples of projects that are potentially eligible:
Manufacturing Projects
- Energy Efficient Industrial Manufacturing
- Energy Efficient Building Equipment and Components Technologies
- Hybrid Vehicle Manufacturing Facilities
- Advanced Wind Turbine or Component Manufacturing Facilities
- Ocean Wave, Tidal and River Current (e.g., Hydrokinetic) Manufacturing Facilities
- Utility-Scale Energy Storage Device Manufacturing Facilities
- Battery Manufacturing Facilities
- Hydrogen and Fuel Cell Manufacturing Facilities
- Low-Cost Carbon Fiber Manufacturing Facilities
- Plug-In Hybrid Manufacturing and Assembly Facilities
- Solar Technology Manufacturing Facilities
- High Temperature Geothermal Pump Manufacturing Facilities
- Advanced Geothermal Power Cycle Manufacturing Facilities
- Substation-Class Transformer Manufacturing Facilities
- Energy Efficient, High Capacity Transmission Cable/Conductor Manufacturing Facilities
- High Power, High Voltage Power Electronics (or Transmission-Class Solid-State Equipment) Manufacturing Facilities
Stand-Alone Projects
- Commercialization of Advanced Design Bio-Refineries for Multi-Feedstock Processing into Biofuels
- Geothermal Power Project Development in Known Geothermal Resource Areas
- Large-Scale Concentrated Solar Power (CSP) and Concentrated Photovoltaic (CPV) Projects
- Tidal Energy Project
- Wave Energy Project
- Advanced Hydropower Project
- Offshore Wind Project
- Industrial Energy Efficiency Projects
- Implementing Hydrogen Fuel Cells into a Project for Stationary and or Vehicular Applications
- Integration of an Energy Efficient Technology into a Commercial, Residential or Industrial Facility or Building
- Advanced Hydropower Facility
An eligible project under the second solicitation will consist of a complex electric transmission systems project located in the United States that utilizes a "commercial technology;" is reasonably likely, at the time of the submission of the initial application, to commence construction on or before September 30, 2011; cannot be financed from private sources on standard commercial terms; meets all applicable requirements of Section 1705, the Recovery Act and the solicitation; and meets at least one of the following criteria set forth below:
- The project involves new or upgraded lines of at least 100 miles of 500 kilovolts (kV) or higher or 150 miles of 345 kV.
- The project has at least 30 miles of transmission cable under water.
- The project has a high voltage direct current (DC) component.
- The project is a major interregional connector.
- The project is designated as a National Interest Electric Transmission Corridor by DOE under the Energy Policy Act of 2005, Pub. L. No. 109-58.
- The project is associated with offshore generation, such as open ocean wave energy, ocean thermal or offshore wind.
- The project mitigates a substantial reliability risk for a major population center.
- The project includes a set of improvements to an integrated system within a state or region that together aggregate to meet the criteria above
Additionally, the first solicitation provides for $8.5 billion in traditional loan guarantee authority where projects must pay the credit subsidy cost themselves. This funding does not have a set expiration date and will be available until expended.
The DOE anticipates that additional loan guarantee solicitations using the remainder of the $2.75 billion in ARRA funds will be released "soon."
Related Links
DOE solicitation for electric power transmission infrastructure investment projects
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