Industry groups ask DOE to restore funding, fix shortcomings in Energy Loan Program

August 27, 2010

News release posted Sept. 10, 2010

WASHINGTON, DC - After lawmakers withdrew $1.5 billion from the Department of Energy's Renewable Energy Loan Guarantee Program (LGP) last month, Growth Energy, the coalition of U.S. ethanol supporters, and seven other industry groups Sept. 9 sent a letter to DOE Secretary Steven Chu urging him to restore the funding and address the shortcomings of the program.

To date, Congress has "borrowed" $3.5 billion from the Loan Guarantee Program to pay for emergency shortfalls in state revenues and the 2009 "Cash for Clunkers" program. The removal of these funds has left the LGP at 60 percent below the level that Congress originally appropriated.

Congress was able to take the funding from the LGP because the DOE has been slow in dispersing its resources. According to a July 12, 2010 U.S. Government Accountability Office (GAO) report, since the LGP was established in 2005, it has issued only one loan guarantee as of April, 2010.

If delays continue at DOE, there is great risk that more of the funds will be drained from this vital program.

In the letter, the groups wrote, "Our members have spent many years and billions of dollars collectively developing renewable energy technologies. Many projects are ready to be deployed, but due to the collapse of the global financial markets and the innovative nature of some of the technologies, they are having difficulty securing the necessary financing. The LGP was specifically designed to overcome these obstacles and its inaction sends the signal that the government is no longer a willing partner to the industry… we urge you to fix the shortcomings of the LGP so that we can continue to work together for a clean energy future in America."

The other seven groups that signed the letter are: the Renewable Fuels Association; Clean Fuels Development Coalition; Solar Energy Industries Association; American Council on Renewable Energy; Biomass Coordinating Council, American Council On Renewable; Biotechnology Industry Organization and American Wind Energy Association.

A full copy of the letter is at the Growth Energy website.

SOURCE: Growth Energy

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