Department of Energy (DOE) Secretary Steven Chu says that changes have been made to the department's dispersal of direct loans, loan guarantees and funding contained in the American Recovery and Reinvestment Act. The goal of the restructuring is to expedite disbursement of money to begin investments in a new energy economy that will put Americans back to work and create millions of new jobs.
By cutting paperwork, processing applications on a rolling basis and drawing on lessons from the private sector and other agencies, the DOE will be in a position to begin offering loan guarantees under the DOE's previous loan guarantee program by late April or early May. These offers may still require recipients to secure their own share of the financing – similar to earnest money in a home mortgage – or meet other conditions prior to closing.
Loan guarantees will be offered under the new recovery legislation by early summer, and dispersal of 70% of the investment from the American Recovery and Reinvestment plan will begin by the end of next year.
Chu has also named Matt Rogers senior advisor to implement these reforms and the investments in the president's American Recovery and Reinvestment Act. Rogers, formerly a senior partner of McKinsey and Co., has more than 20 years of experience in working with the energy industry and has done extensive work on the economics of addressing the global climate crisis.
The changes will affect the Loan Guarantee Program established by the Energy Policy Act of 2005, the Advanced Technology Vehicles Manufacturing Loan Program and DOE funding contained within the American Recovery and Reinvestment Act.
SOURCE: Department of Energy