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 today 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.
Today, in an effort to ensure the success of our nation’s clean energy goals, Growth Energy and seven other industry groups wrote to Secretary Chu urging him to restore the funding of the Loan Guarantee Program and evaluate its shortcomings so that it may operate as intended.
In their letter, they 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.”
A full copy of the letter is below:
September 9, 2010
The Honorable Steven Chu, Secretary
United States Department of Energy
1000 Independence Avenue, S.W.
Washington, DC 20585
Secretary Chu:
As representatives of the renewable energy industries in the United States, we are concerned with the implementation of Title XVII Renewable Energy Loan Guarantee Program (LGP) at the Department of Energy (DOE). It is critical to the success of our nation’s clean energy goals that the LGP immediately begin operating as it was intended.
Lawmakers have taken $1.5 billion from the loan guarantee program to pay for emergency shortfalls in state revenues. This action follows last year’s removal of $2 billion from the LGP to pay for the “Cash for Clunkers” program, which has not been restored. Removing the additional $1.5 billion would leave the LGP nearly 60 percent below the level that Congress originally appropriated.
There is no question Congress is taking the LGP funds because DOE has been slow in dispersing them. A July 12, 2010 U.S. Government Accountability Office (GAO) report titled “Department of Energy: Further Actions Are Needed to Improve DOE’s Ability to Evaluate and Implement the Loan Guarantee Program,” noted that since the LGP was established in Title XVII of the Energy Policy Act of 2005, it had issued only one loan guarantee as of April, 2010. We are concerned that if delays continue at DOE, there is great risk that more of the funds will be drained from this vital program.
Our country’s energy needs are increasing rapidly. It is clear that the American public, our elected officials, and the President want renewable energy to meet that need. President Obama has laid out a clear goal of increasing our use of renewable energy while addressing the very real challenge of global climate change.
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.
The DOE has been instrumental to the advancement of renewable energy in the United States and we collectively applaud you for that leadership role. It is because of your past support that 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.
Sincerely,
Growth Energy
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
American Wind Energy Association
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About Growth Energy
Growth Energy is a group committed to the promise of agriculture and growing America’s economy through cleaner, greener energy. Growth Energy members recognize America needs a new ethanol approach. Through smart policy reform and a proactive grassroots campaign, Growth Energy promotes reducing greenhouse gas emissions, expanding the use of ethanol in gasoline, decreasing our dependence on foreign oil, and creating American jobs at home. More information can be found at GrowthEnergy.org