The U.S. House of Representatives is expected to pass a Senate bill that would remove a further $1.5 billion from the funding pool for the Department of Energy's (DOE) renewable energy loan-guarantee program. The move is part of a $26.1 billion package that would transfer the funds to cover teacher salaries and Medicaid, according to the Solar Energy Industries Association (SEIA).
SEIA further estimates there are currently 81 renewable-energy project applications – totaling $31 billion in lending authority – in the loan-guarantee pipeline. Because just $2.5 billion remains in the program, the DOE is expected to be able to fund project applications totaling $25 billion. Consequently, SEIA says, the program is already oversubscribed.
‘This reduction in funding severely limits the DOE's ability to support the suite of renewable resources through the loan-guarantee program,’ SEIA and other renewable energy associations wrote in a letter to House Speaker Nancy Pelosi. ‘Further, a solicitation for manufacturers of commercial renewable energy technologies has not even been released yet by DOE.
‘The proposed cut makes it likely that manufacturers of commercial renewable technologies will not be able to take advantage of the DOE loan-guarantee program,’ the organizations continued.