Special Report: IG-0777

itle XVlI of the Energy Policy Act of 2005 authorized the Departinent of Energy to
provide loan guarantees for projects that "avoid, reduce, or sequester air pollutants or
;~~lthropogeneitl.n issions o l g recnlluuse gases and ei~lploy~ I SW0 1- significai~ilji l~i p r o~c d
energy production techilologies as compared to coininercial technologies in service in the
Uilitcd States." Cui-rei~tlyt,h e Department has $4 billion in loan guarantee authority and
has requested $9 billion in Fiscal Year 2008. Although the Department is proposing that
sponsors receiving guarantees under the program make a significant equity ii~vestmenitn
the project, under the Act, the Departineilt may guarantee up to 80 percent of total project
costs. This will result i11 significant risk to tlie Governinent and, therefore, the American
taxpayer.