An Emerging Sector in Need of Support
Restoring the United States to a position of global leadership in clean energy is a critical national priority, with implications for our economic competitiveness, national security, and environmental legacy. This goal can only be achieved through widespread and large-scale deployment of new and innovative clean energy technologies—an undertaking that will require massive, sustained investment by the private sector.
Yet, to date, the private sector has not invested in clean energy at the scale needed to meet our national goals. Part of this shortfall can be attributed to the recent domestic financial crisis and global economic downturn. But much of it is due to the unique features of large-scale energy projects, which make traditional financing difficult to find—even in flush economic times.
Helping to Mitigate Risk
The Department of Energy’s Loan Programs—administered by LPO—enable DOE to work with private companies and lenders to mitigate the financing risks associated with clean energy projects, and thereby encourage their development on a broader and much-needed scale.
The Loan Programs consist of three separate programs managed by two offices, the Loan Guarantee Program Office (LGP) and the Advanced Technology Vehicles Manufacturing Loan Program Office. LPO originates, guarantees, and monitors loans to support clean energy projects through these programs. The programs are:
- Section 1703: Under Section 1703 of Title XVII, DOE LGP is authorized to guarantee loans for projects that employ new or significantly improved energy technologies and avoid, reduce or sequester air pollutants or greenhouse gases.
- Section 1705: Under Section 1705 of Title XVII, added by the American Reinvestment and Recovery Act (ARRA), DOE LGP is authorized to guarantee loans for certain clean energy projects that commenced construction on or before September 30, 2011. The Section 1705 program expired, pursuant to statute, on September 30, 2011 and will actively monitor projects that previously received loan guarantees under the 1705 program. LPO will no longer issue new loan guarantees under the 1705 program.
- Advanced Technology Vehicles Manufacturing (ATVM): Under Section 136 of the Energy Independence and Security Act of 2007, DOE is authorized to provide direct loans to finance advanced vehicle technologies.