On April 16, 2014, the Department of Energy (DOE) Loan Programs Office issued a draft loan guarantee solicitation of up to $4 billion for renewable energy projects focused on clean energy innovation. The draft solicitation is particularly significant in that it is the first offer for renewable and efficiency projects under DOE’s 1703 Loan Program since 2008.
The solicitation focuses on projects in the following five areas: (1) advanced grid integration and storage, (2) drop-in biofuels, (3) waste-to-energy, (4) enhancement of existing facilities, and (5) efficiency improvements. The application process for this program will be split into two parts. Part I requires a description of the proposed project so that DOE can determine overall eligibility. Upon successfully passing Part I, applicants that move on to Part II will be asked to undergo a more rigorous full application process. Based on previous solicitations, the process from time of application to financial close can take up to three (3) years.
The Loan Programs Office is conducting a 30-day comment period on the scope of the solicitation which is due to end May 16. The final solicitation is then expected to be issued in June or July of 2014.
Mintz Levin and ML Strategies advise on these types of matters for a range of energy tech clients.