The Department of Energy on Monday announced the issue of a final rule amending regulations for its Loan Guarantee Program. The revised rule will allow for increased participation in the program by financial institutions and other investors.
Under the rule change, the Loan Guarantee Program will be able to
consider financing projects together with other lenders and will be
able to provide loan guarantees to projects with multiple participants
(who may hold undivided interests in a project). As an example, export
credit agencies and other financial institutions will now be able to
provide financing to complement Title XVII loans and loan guarantees.
DOE said this approach will result in lowered risk and potential costs to
taxpayers
“This much needed change will provide greater flexibility to the Loan Guarantee Program and help us to support more projects at a better value to taxpayers,” said Secretary Chu.“
DOE said it incorporated feedback from industry and other interested
parties in order to maximize the reach and success of the program. A month ago, DOE brought on Jonathan SIlver, a Washington D.C.-based venture capitalist to oversee the program.
It is hoped that the new rule changes will speed the application and approval process which has been criticized for moving too slowly.
Copies of the proposed rule will be available at the link below.
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