USA Energy Advisors Newsletter
 December 30, 2008     back to Newsletters
Subject:  USAEA Alert: 
Eligibility for Department of Energy Loans and Loan Guarantees  

If you missed our Jan 16th Webinar, click here for the slides and video.

This alert covers U.S. Department Of Energy (DOE) financial incentive opportunities. DOE is administering two industrial stimulus programs which will provide loans, loan guarantees and grants to companies in

DOE Incentive Programs for Industry

  • Advanced Technology Manufacturing Loan Program ($25B)
  • Renewable Energy loan Guarantee Program ($10B)

  1. the ADVANCED ENERGY SECTOR to promote new alternative energy technologies ready for commercial use through loan guarantees, and
  2. the AUTOMOBILE INDUSTRY to provide loans to promote more fuel efficient light-duty vehicles.
Your company many be eligible for one or both programs.
 
USA Energy Advisors (USAEA), headquartered in Columbus, Ohio with offices in Washington D.C., is an experienced asset management firm. We are presently designing and administering the State of Ohio’s $84 million Advanced Energy grant program and assisting firms in their efforts to obtain funding under the DOE and other federal incentive programs. Periodically, we send out USAEA Alerts to industry about financing opportunities. 
 
On January 16th, 2009, USAEA is hosting a free webinar,"Government Incentives For Advanced Energy Manufacturing" with officials and advisors from the DOE and Ohio incentive programs, which is a month before the deadline for applications to the Advanced Energy program.  Details will be provide in a follow-up email or you can sign up now at: www.usaenergyadvisors.com after December 30th.
 
DOE Advanced Technology Vehicles Manufacturing
Loan Program:  $25 Billion
Pursuant to the “Advanced Technology Vehicles Manufacturing Loan Program”, the Department of Energy (“DOE”) intends to provide up to $25 Billion in loans to the auto industry. On November 5, 2008, DOE issued the Interim Final Rule setting the eligibility requirements for this program.
  • DOEEligible firms: Automobile manufacturers and suppliers of product that will be used in a vehicle that is at least 25% more fuel efficient than the average 2005 fuel economy for that vehicle.
  • Uses of Funds: Reequipping, expanding or establishing manufacturing facilities in the United States to produce qualified advanced technology vehicles including the cost of engineering integration performed in the United States.
  • Application Deadlines: Applications will be considered in groups as received. The deadline for the first grouping is December 31, 2008 and subsequent groupings will follow every 90 days until the funding and loan authority permit.  The timing for receiving funding depends upon the following factors:  1) when the application is submitted,  2) “thoroughness” of the proposal, and 3) the “attainment” of any required permits or approvals.” 
DOE will provide incentives to component parts manufacturers and suppliers as well as to the automakers. For more information, please visit http://www.atvmloan.energy.gov/
 

DOE Renewable Energy Loan guarantee Program:  $10 billion

Title XVII of the federal Energy Policy Act of 2005 (EPAct 2005) authorized the U.S. Department of Energy (DOE) to issue loan guarantees for projects that reduce pollution and improve energy efficiency.  The 2009 allocation is $10 billion.
 
A principal purpose of the Title XVII loan guarantee program is to encourage early commercial use of new or significantly improved technologies in energy projects as compared to commercial technologies available in the United States at the time the guarantee is issued. DOE's loan guarantee program is not intended for research and development.
  • Eligible firms:  In 2007, DOE issued its first round of loan guarantees for biomass, hydrogen, solar, wind and hydropower, advanced fossil energy coal, alternative fuel vehicles, pollution control equipment, energy efficiency and reliability, and electricity delivery.  These first round awards can be considered a guide to DOE’s emphasis under the program.
  • Uses of Funds: Funding is specifically to bring new or significantly improved advanced energy technologies into production or operation. 
  • Application Deadlines:  The application deadline has been extended from December 31, 2008 to February 26, 2009. 
DOE believes that accelerated commercial use of new or improved technologies will help sustain economic growth, yield environmental benefits, and produce a more stable and secure energy supply. For more information, please visit http://www.lgprogram.energy.gov/index.html
 
 USA Energy Advisors Provides
  • Acquisition of government grants and loans
  • Access to private capital
  • Management assistance to entrepreneurs
  • Technology market assessment
  • Commercialization strategies and tactics
  • Design and management of government economic incentive programs 
Columbus, Ohio and
Washington, D.C.
www.usaenergyadvisors.com

For More Information

Both of these DOE programs are fluid, and subject to the prevailing political and economic conditions.  We meet  frequently with officials in these and other federal energy incentive programs and will keep USAEA Alert subscribers current  on funding opportunities.  Remember to check our website for details and to sign up for the webinar being held on January 16, 2009 regarding DOE and Ohio incentive programs. 
 
Please contact us for more information about our advanced energy services and look for an email with the details of the USA Energy Advisors’ January 16th free Webinar on the government funding programs. 
Thank you,
 
Edward R. Saltzberg, Ph.D.
Managing Director
USA Energy Advisors
The Watergate
2600 Virginia Avenue, N.W. Suite 606
Washington, D.C.  20037
esaltzberg@usaenergyadvisors.com