Loans of $2 Billion Weighed by U.S. for Clean Energy Projects

Jim Snyder, Bloomberg
March 18, 2013 | 5 Comments

The U.S. Energy Department is reviewing nine applications from companies seeking $4.8 billion in energy-related loan guarantees, the first since the collapse of Solyndra unleashed an avalanche of Republican criticism.

A Government Accountability Office report today showed applications for eight energy-efficiency and renewable-energy projects valued at $2 billion and a coal gasification plant that can capture carbon-dioxide emissions for $2.8 billion.

The department hasn’t issued a loan or loan guarantee since September 2011 when its authority under a stimulus-financed program expired. Loan guarantees were criticized by Republican lawmakers after Solyndra, a solar-panel maker in California, went bankrupt two years after winning a $535 million U.S. guarantee.

The loan-guarantee program, which operated from 2009-2011 delivered a total of $16 billion to 28 companies as part of the 2009 economic stimulus.

Separately, Congress appropriated $170 million in April 2011 to support a new round of guarantees to cutting-edge projects through guarantees.

Of the pending energy-efficiency and renewable-energy initiatives, two are biomass, one is solar generation, three are solar manufacturing and two are wind generation, according to the GAO, which doesn’t identify any of the projects.

The Energy Department declined to give GAO, Congress’s investigative arm, an estimate as to when the projects would gain U.S. backing. Some applicants told auditors that they expected to have the guarantees within the next six months.

The Energy Department has issued a conditional commitment for an $8.3 billion loan guarantee to Southern Co. for the construction of the Vogtle nuclear-power plant in Georgia.

Lead image: Tray balance via Shutterstock

5 Comments

Cliff Claven
March 21, 2013

What do you call a taxpayer-funded "loan guarantee" to political cronies that is not repaid? It should be a "felony," but it is "business as usual" for our government. $16 billion divided among 28 favored start-ups in preferred congressional districts is $571 million apiece. I'll take one of those "measley" half-billion-dollar handouts as my fee for providing the following sound financial advice to DoE. Stop playing venture capitalist with taxpayer money. You suck at it.

DAVID SHEPARD
March 19, 2013

Government can spend money but why not actually require every filling station in the United States to have every type of vehicle fuel available in order to give alternatively fueled vehicles a chance ? Compressed Natural Gas (C.N.G.), Compressed Hydrogen , Electric Vehicle Recharging Stations , E-85 or Ethanol Alcohol , are all used in Vehicles of different types and can be used in Multiple-Fueled Vehicles . By not requiring that all fuels at least be available we are hurting the development of cleaner energy and maintaining the monopoly of gasoline and diesel . Such requirements do not require taxpayer dollars . David A Shepard

David Coles
March 19, 2013

Well although we applied for a measley grant from the NIH for our Solar Powered HVAC System and other products, we heard nothing and got nothing...not even a get lost email reply! What do you think? www.dcasystems.com

eric solorio
March 19, 2013

that is government for you...they take our money then give it to those with the most influence but somehow we are not entitled to know who they are giving it to. good thing they aren't very smart. just take a look at the required NEPA documents that are published prior to each 'federal action' and noticed in fed register. they have to disclose each project in each DEIS, FEIS or EA. hopefully, we'll see a follow up story on where our money is going....to the same ole cronies is my guess.

Thomas M
March 18, 2013

All that fuss over 535 M,and now that they think that they've got it right, they're offering up 4.8 B. GAO will not identify to who will get the money and the energy dept isn't saying when they plan on giving out the money. This one should be interesting....