About the Section 1705 Loan Program
The Section 1705 Loan Program authorized loan guarantees for U.S.-based projects that commenced construction no later than September 30, 2011 and involved certain renewable energy systems, electric power transmission systems, and leading edge biofuels.
Section 1705 Eligibility
In order to be eligible for a section 1705 loan, the applicant must be a renewable energy systems project, an electric power transmission systems project, or a leading edge biofuels project. The applicant must also:
- Be located in the U.S.;
- Have begun construction on or before September 30, 2011;
- Meet Davis Bacon requirements; and
- Meet all applicable requirements of the Recovery Act.
Section 1705 Application Information
The Section 1705 Loan Program expired on September 30, 2011. LPO continues to monitor projects that have already received loan guarantees under the 1705 program, but no new loan guarantees will be issued.
Section 1705 Credit Subsidy Cost
Title XVII specifies that the Department of Energy must receive either an appropriation for the Credit Subsidy Cost (CSC) – the expected long-term liability to the Federal Government in issuing the loan guarantee – or payment of that cost by the borrower. The Department appropriated funds to pay the Credit Subsidy Cost of Section 1705 projects. In some cases, 1703 eligible projects may also be eligible under 1705, thereby qualifying them for appropriated CSC.
Financial Institution Partnership Program
The Financial Institution Partnership Program (FIPP) was a robust, risk-sharing partnership between the Energy Department and qualified finance organizations for loan guarantees issued under Section 1705. To learn about FIPP, please view the solicitation here.
Section 1705 Portfolio
Learn more about projects that were financed through the Section 1705 by reading 5 Big Wins in Clean Energy from the Loan Programs Office.