Energy > AG Speaking Energy > Department of Energy Loan Guaranties for Renewable Energy and Energy Efficiency Projects
22 Jul '14

On July 3, 2014 the United States Department of Energy (DOE) issued its latest solicitation under Section 1703 of Title XVII of the Energy Policy Act of 2005 for applications to obtain loan guarantees to finance innovative and renewable or energy efficient technologies which avoid, reduce, or sequester the  emission of greenhouse gases (the Solicitation).  DOE has authority to issue up to $2.5 Billion of loan guarantees, supplemented by limited authority to fund up to approximately $170 million of credit subsidy costs associated with the issuance of these loan guarantees.  Eligible projects may receive loan guarantees for up to 80% of eligible project costs. 

The Solicitation is intended to expand DOE’s existing $32.4 Billion loan guarantee portfolio.

As with prior DOE loan guarantee solicitations, applicants will be evaluated through a preliminary Part I application, which will determine eligibility for a loan guarantee based on technical information, management profile, the financing, construction and operation strategies and critical path schedules, and a subsequent Part II application, whereby qualified Part I applicants will provide detailed project diligence.  Prevailing Part II applicants will (based on financial (45%), technical (35%) and programmatic (20%) factors) be invited to negotiate a conditional commitment with DOE and then, following execution of the conditional commitment, definitive loan guarantee documentation. 

Five application rounds are planned in conjunction with the Solicitation, consistent with the following schedule:

Round

Part I Application Submission Deadline

Part II Application Submission Deadline

1

October 1, 2014

January 14, 2015

2

December 3, 2014

March 11, 2015

3

April 1, 2015

July 1, 2015

4

August 5, 2015

November 4, 2015

5

December 2, 2015

March 2, 2016

 

Please note that lawyers at Akin Gump have assisted our clients with approximately $5 billion of DOE loan guarantees under the existing DOE loan guarantee program.