Good News and Bad News for DOE's Loan Guarantee Program
There has been a wave of good and bad news this past week regarding the DOE's Loan Guarantee Program. On the positive side, Secretary Chu announced on Friday that the Department would be adding an additional compliance period for the Innovative Solicitation. The current deadline for the Part I application under the program is August 24th. Secretary Chu announced the applications would be accepted until October 5th thus providing six more weeks of time to applicants. Secretary Chu did not extend the Part II deadline and cannot extend the September 30, 2011 start construction deadline as that deadline was established by the Stimulus Bill itself. Still, the extension was generally viewed as a respite and perhaps an indication of a willingness to further extend the program.
On the bad news side, the Senate approved the FMAP state aid bill to avert teacher layoffs and pay for Medicaid which is to be funded in part by taking $1.5 billion in funds that the Stimulus Bill appropriated to the DOE Loan Guarantee program. Clearly driven by Pay-Go requirements, this is a reminder of the $2.0 billion fleecing that the Loan Guarantee Program suffered when Cash for Clunkers program was passed. While it has been promised that the funds will be restored, the fact that the Cash for Clunkers funding has not yet been restored raises concern about whether the restoration will occur.
DOE Announces $154 million in Funding for State Energy Programs
Yesterday, the Department of Energy (“DOE”) announced more than $154 million in Recovery Act funding to four states for their State Energy Programs (“SEPs”). The funds were awarded to California, Missouri, New Hampshire, and North Carolina. The funding is to be provided in two stages to the four states with the second stage requiring successful performance at the first level. The funding is to be utilized in the areas of energy efficiency, workforce training, education and related programs.
California will use its SEP funds to finance a statewide retrofit program, provide clean energy to buildings and facilities, and develop a public education and outreach program focusing on the advantages of energy efficiency. In addition, California will use its SEP funds to further develop a green workforce in the areas of energy efficiency and clean energy. After demonstrating success in the execution of its plan, California will receive additional funds of more than $113 million, for a total of $226 million.
Missouri will use its SEP funds to increase energy efficiency through various measures, including the expansion of existing home efficiency programs, building energy codes, and training programs. Missouri will also examine its most energy-intensive industrial/manufacturing sectors for energy-saving opportunities and will increase energy efficiency through a program that may include energy audits, rebates, and low-interest loans. After demonstrating success in the execution of its plan, Missouri will receive more than $28.6 million of additional funds, for a total of over $57 million.
New Hampshire will use its SEP funds to advance energy efficiency and renewable energy through building codes, competitive loans and grants, and financial and technical assistance to businesses and other institutions. New Hampshire will also support energy efficiency upgrades to colleges, universities, and state-owned buildings. After demonstrating success in the execution of its plan, New Hampshire will receive more than $12 million of additional funds, for a total of over $25.8 million.
North Carolina will use its SEP funds to promote energy efficiency and renewable energy through competitive grants, revolving loans, and education and training programs designed to encourage investment in energy-related technologies. The state will also establish a training program in its community colleges and universities to prepare workers for the green economy. After demonstrating success in the execution of its plan, North Carolina will receive $38 million of additional funds, for a total of $76 million.
