Yesterday three important regulatory developments occurred in the clean energy space: the Department of Energy announced an $8 billion loan guarantee solicitation for fossil energy projects that reduce greenhouse gases; the US Export-Import Bank made greenhouse gas regulations a requisite for future coal-fired energy financings abroad; and the Department of Energy announced a clean energy manufacturing tax credit allocation.

  1. The Energy Department published a solicitation making up to $8 billion in loan guarantee authority available to support innovative advanced fossil energy projects that avoid, reduce, or sequester greenhouse gases. Authorized by Title XVII of the Energy Policy Act of 2005, loan guarantees under this new solicitation will help provide critical financing to support new or significantly improved advanced fossil energy projects – such as advanced resource development, carbon capture, low-carbon power systems, and efficiency improvements – that reduce emissions of carbon dioxide, methane, and other greenhouse gas pollution.
  2. The U.S. Export-Import Bank's board of directors decided that foreign governments will have to put greenhouse gas-reducing regulations in place before U.S. companies can secure financing support to build coal-fired power plants abroad. The board adopted revisions to guidelines for projects that require the capture and storage of carbon in foreign countries. The requirement on coal-fired plants would be applied on a flexible basis to projects that would develop the energy needs of the poorest countries, the bank said in a statement. (Politico Pro, Dec. 12)
  3. The Energy Department announced $150 million in tax credits to support clean energy manufacturing at 12 U.S. companies, focusing on a range of technologies, from diesel emission control products to giant wind turbines. The funds stem from unused credits left from $2.3 billion in clean energy manufacturing tax credits provided in the 2009 stimulus bill. The program, known as 48(C) for its section in the tax code, is the only clean-energy tax credit that had the ability to recycle the credits if original awardees did not use them (Greenwire, Dec. 11). Fuel-efficient vehicle technologies received the most funding, with Ford, General Motors, Delphi Automotive, MC Ionic and Corning Inc. receiving a total of almost $68 million.

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