Current Loan Guarantee Commitments

Department of Energy Loan Guarantee Program: Current Loan Guarantee Commitments

Passed as part of the Energy Policy Act of 2005, the Department of Energy’s (DOE) Title XVII Loan Guarantee Program has $34 billion in authority to give loan guarantees to innovative technologies. 1 The 1705 program also had about $2.4 billion in Recovery Act funds to pay for the credit subsidy cost for renewable and energy efficiency projects, but those funds expired on September 30, 2011. So far, the DOE has finalized $16.13 billion worth of loans and committed $10.65 billion. Below is a list of applicants that have a committed or finalized loan; there are other companies that are in the process of applying for a loan and at least one company that has rejected the loan terms offered by the DOE.

Nuclear Power Facilities

Current DOE loan guarantee authority for the financing of nuclear projects is set at $18.5 billion with an additional $4 billion now identified for uranium enrichment (see see front-end nuclear cycle below).1 President Obama is requesting more. In both his FY2011 and FY2012 budgets, he included an additional $36 billion in loan guarantee authority for nuclear reactors. If his FY2012 budget is approved, loan guarantee authority for nuclear reactors would total roughly $50 billion. This authority is under the 1703 program.

So far, only one nuclear company, Southern Company, has been offered a conditional commitment. Constellation Energy was in extensive negotiations with the DOE over a loan guarantee but backed out after citing the “unreasonably burdensome” cost associated with the loan guarantee the DOE offered and claimed that it would “create unacceptable risks and costs for our company.”2 Other nuclear companies are currently under review for a loan guarantee and rely on reactor designs that are currently in use in Japan.

Table 1: Nuclear Power Facility Loan Guarantees Loan Loan Date of Date Guarantee Technology Location Guarantee Status Conditional Finalized, Recipient Allotment Commitment Accepted Georgia Power Nuclear Atlanta, GA Conditional $8,330,000,000 February 2010 TBD Company Generation Tucker, GA Commitment

Front-End Nuclear Fuel Cycle

Congress has appropriated $2 billion in loan guarantee authority for Front-End Nuclear Fuel Cycle technology, and the Department of Energy further allocated $2 billion in loan guarantee authority from previously unallocated funds passed by Congress in 2007.3 Of that, $2 billion has been conditionally offered to AREVA for a uranium enrichment center that sells fuel to nuclear reactors. AREVA has yet to receive proper licenses and permits from the Nuclear Regulatory Commission in order to safely build and operate the facility, and it is not expected to receive those permits until later this year. USEC has updated its application after the DOE encouraged them to withdraw their application in 2009. This authority is under the 1703 program.

1 $4 billion in earmarked funds and $2 billion transferred from funds appropriated in 2007 for any technology

Table 2: Front-End Nuclear Fuel Cycle Loan Guarantees Loan Loan Date of Date Guarantee Technology Location Guarantee Status Conditional Finalized, Recipient Allotment Commitment Accepted AREVA, Eagle Front-end Rock Conditional Nuclear Fuel Idaho Falls, ID $2,000,000,000 May 2010 TBD Enrichment Commitment Cycle Facility

Coal-Based Power Generation and Advanced Coal Gasification

Currently, no coal-based projects have been given a conditional commitment from the DOE for a loan guarantee, though several companies are currently under review. Congress has approved $6 billion in authority for Coal-based Power Generation and Industrial Gasification and $2 billion for Advanced Coal Gasification. This includes such technologies as coal-to-liquid, or converting coal into a liquid fuel through the Fischer Tropsch Process, and coal gasification. Several companies are actively seeking these loans and are in the middle of getting environmental impact statements from the loan guarantee office to determine if their projects are eligible. This includes a coal-to-liquid plant in Medicine Bow, Wyoming, an industrial gasification facility near Beaumont, TX, and another gasification site in Moss Point, MS, among several others. These projects would receive loans through the 1703 program.

Renewable and Energy Efficiency

The last area of funding under the loan guarantee program is renewable and/or energy efficient systems manufacturing and distributed energy generation, transmission and distribution. This program currently has $1.5 billion available in loan guarantee authority. Solar, wind, geothermal, and various energy efficiency technologies have received loans, while other energy alternatives are also under review. In April of this year, Congress decreased the budget authority cap for renewable projects and shifted $170 million to credit subsidy funds. As a part of the American Recovery and Reinvestment Act, $6 billion was appropriated to pay for the credit subsidy cost of loan guarantees under program 1705. Those funds were decreased several times by Congress to fund other projects, and the 1705 program had about $2.4 billion in credit subsidy funds. However, those credit subsidy funds expired on September 30, 2011, though President Obama proposed another $200 million to pay for the credit subsidy cost of renewable and energy efficiency projects under his FY2012 budget under section 1703 of the program. This would fund another $1-2 billion in loans. Most of these projects are funded under the 1705 program.

Solyndra Inc, the first company to receive a loan guarantee, has been in financial trouble from the start after receiving a loan guarantee over a year and a half ago. The company had to close one of their plants and lay off 40 workers in the beginning of 2011 and sought some loan restricting from the DOE. In September of 2011, the company went bankrupt, laying off 1,100 employees. The company is under investigation by the FBI and House Energy and Commerce Committee. It is currently unclear how much of the loan guarantee taxpayers will ultimately lose.

Table 3: Renewable and Energy Efficiency Loan Guarantees Date of Loan Guarantee Loan Guarantee Date Finalized, Technology Location Status Conditional Recipient Allotment Accepted Commitment Solar Finalized, Solyndra, Inc. Fremont, CA $535,000,000 20-Mar-09 4-Sep-09 Manufacturing Accepted Nordic Windpower Wind Berkeley, CA Conditional $16,000,000 2-Jul-09 No Final Loan USA Manufacturing Pocatello, ID Commitment Stephentown, Finalized, Beacon Power Energy Storage $43,000,000 2-Jul-09 9-Aug-10 NY Accepted Red River Energy Littleton, CO Conditional Environmental $245,000,000 8-Dec-09 TBD Efficiency Coushatta, LA Commitment Products, LLC BrightSource Energy, Oakland, CA Finalized, Solar Generation $1,600,000,000 22-Feb-10 11-Apr-11 Inc. Baker, CA Accepted Energy Conditional SAGE Electrochromics Faribault, MN $72,000,000 5-Mar-10 TBD Efficiency Commitment Boston, MA First Wind- Kahuku Finalized, Wind Generation Kahuku, Oahu, $117,000,000 5-Mar-10 27-Jul-10 Wind Power, LLC Accepted HI Boise, ID Finalized, U.S. Geothermal, Inc. Geothermal Malheur $96,800,000 10-Jun-10 24-Feb-11 Accepted County, OR Nevada Geothermal Humboldt Partial Guarantee Finalized, Geothermal 15-Jun-10 7-Sep-10 Power Company County, NV of $98,500,000 Accepted Abengoa Solar, Inc. Finalized, Solar Generation Gila Bend, AZ $1,450,000,000 3-Jul-10 21-Dec-10 (Solana) Accepted Abound Solar Solar Longmont, CO Finalized, $400,000,000 3-Jul-10 14-Dec-10 Manufacturing Manufacturing Tipton, IN Accepted Johnson City, Finalized, AES Corporation Energy Storage $17,000,000 2-Aug-10 23-Dec-10 NY Accepted Gilliam and Partial Guarantee Finalized, Caithness Shepards Flat Wind Generation Morrow of 8-Oct-10 17-Dec-10 Accepted Counties, OR $1,300,000,000 LS Power Associates Ely to Las Finalized, Transmission $343,000,000 19-Oct-10 15-Feb-11 (ON Line) Vegas, NV Accepted Diamond Green Diesel, Advanced Conditional Norco, LA $241,000,000 21-Jan-11 Abandoned LLC Biofuels Commitment Agua Caliente Solar, Yuma County, Finalized, Solar Generation $967,000,000 21-Jan-11 5-Aug-11 LLC AZ Accepted Solar Finalized, SoloPower Wilsonville, OR $197,000,000 17-Feb-11 19-Aug-11 Manufacturing Accepted Finalized, Record Hill Wind Wind Generation Roxbury, ME $102,000,000 3-Mar-11 15-Aug-11 Accepted SunPower Corporation, San Luis Finalized, Systems (California Solar Generation $1,237,000,000 12-Apr-11 30-Sept-11 Obispo, CA Accepted Valley Solar Ranch) Solar Trust of America Conditional Solar Generation Blythe, CA $2,105,000,000 18-Apr-11 Abandoned (Solar Millenium) Commitment Cogentrix of Alamosa, Finalized, Solar Generation $90,600,000 10-May-11 9-Sept-11 LLC. Alamosa, CO Accepted SolarReserve, LLC Nye County, Finalized, 28-Sept-11 Solar Generation $737,000,000 19-May-11 (Crescent Dunes) NV Accepted Fotowatio Renewable NE Las Vegas, Partial Guarantee Conditional Solar Generation 2-Jun-11 No Final Loan Ventures, Inc. NV of $45,600,000 Commitment Jersey Valley, McGinness Partial Guarantee Finalized, Ormat Nevada, Inc. Geothermal 9-Jun-11 23-Sept-11 Hills, and of $350,000,000 Accepted Tuscarora, NV Abengoa Solar, Inc. San Bernardino Finalized, Solar Generation $1,200,000,000 14-Jun-11 13-Sept-11 (Mojave Solar) County, CA Accepted 3

NextEra Energy Riverside Partial Guarantee Finalized, Resources, LLC Solar Generation 14-Jun-11 26-Aug-11 County, CA of $852,000,000 Accepted (Genesis Solar) Mesquite Solar 1, LLC Maricopa Finalized, Solar Generation $337,000,000 15-Jun-11 28-Sept-11 (Sempra Mesquite) County, AZ Accepted Solar Conditional Calisolar Inc. Ontario, OH $275,000,000 16-Jun-11 Abandoned Manufacturing Commitment Solar Finalized, 1366 Technologies, Inc. Lexington, MA $150,000,000 17-Jun-11 8-Sept-11 Manufacturing Accepted Partial Guarantee Finalized, Granite Reliable Wind Generation Coos, NH 21-Jun-11 23-Sept-11 of $168,900,000 Accepted Partial Guarantee Finalized, Prologis (Project Amp) Solar Generation 28 States of 22-Jun-11 30-Sept-11 Accepted $1,400,000,000 Excelon Corporation Finalized, Solar Generation Lancanster, CA $646,000,000 30-Jun-11 30-Sept-11 (Antelope) Accepted Partial Guarantee First Solar, Inc. (Desert Riverside Finalized, Solar Generation of 30-Jun-11 30-Sept-11 Sunlight) County, CA Accepted $1,460,000,000 Partial Guarantee San Luis Obispo Conditional First Solar, Inc. (Topaz) Solar Generation of 30-Jun-11 No Final Loan County, CA Commitment $1,930,000,000 Finalized, Poet, LLC. Biofuel Emmetsburg, IA $105,000,000 7-July-11 23-Sept-11 Accepted Abengoa Bioenergy Finalized, Biomass of Kansas Biofuel Hugoton, KS $132,400,000 19-Aug-11 29-Sept-11 Accepted LLC 33 states on 124 Military SolarCity Corporation Partial Guarantee Conditional Solar Generation installations 8-Sept-11 No Final Loan (SolarStrong) of $344,000,000 Commitment throughout the US

Withdrawn Companies

Poet, LLC, one of the largest biofuel producers in the country, received a $105 million loan guarantee in September 2011 to build a proposed 25 million gallon cellulosic ethanol plant in Emmetsburg, Iowa. On January 23rd 2012, POET announced they would withdraw from the federal loan guarantee program. Instead of receiving the $105 million federal loan guarantee, POET plans to partner with Royal DSM, a life and material sciences company, to further develop cellulosic ethanol.4

______January 2012 For more information contact Autumn Hanna, Taxpayers for Common Sense (202) 546-8500 or [email protected]

1 Revised Continuing Resolution, 2007. Pub. L. no. 110-5. 121 Stat 8 (2007), Consolidated Appropriations Act, 2008, Pub. L. no. 110-161, 121 Stat 1844 (2007),Omnibus Appropriations Act, 2009, Pub. L. no. 111-8, 123 Stat 524 (2009) 2 http://ir.constellation.com/releasedetail.cfm?releaseid=516614 3 Department of Energy, “DOE Offers Conditional Loan Guarantee for Front End Nuclear Facility in Idaho,” May 20, 2010. http://www.energy.gov/news/8996.htm 4 Timothy Gardner, “Ethanol maker Poet declines U.S. government loan aid.” Reuters. January 23, 2012. http://www.reuters.com/article/2012/01/23/us-usa-ethanol-loanaid-idUSTRE80M20K20120123