DOE Budget Includes Loan Guarantees for Biofuels and Renewables
February 7, 2007
President Bush's proposed budget for fiscal year (FY) 2008 would allow DOE to guarantee up to $9 billion in loans for innovative energy technologies, including $4 billion in loans for projects that promote biofuels and clean transportation fuels and $1 billion in loans for projects using new technologies for electric transmission facilities or renewable power generation systems. See PDF pages 27 and 28 of DOE's section of the Appendix to the White House budget plan (PDF 329 KB). Download Adobe Reader.
The Innovative Technology Loan Guarantee Program was established by Title XVII of the Energy Policy Act of 2005, and DOE issued its first solicitation for pre-applications in August 2006, with the aim of guaranteeing a total of $2 billion in loans. However, a lack of funding has held up the program, as Congress has yet to finalize appropriations for the current fiscal year. If Congress appropriates the funds for the current $2 billion in loan guarantees, they will be subtracted from the $9 billion in loan guarantees proposed for FY 2008. See the DOE Loan Guarantee Program Web site.