BioFuels Journal

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 sent a letter Sept. 9 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.

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.”

For more information, call 202-545-4000.

See Related Websites/Articles:

• Growth Energy

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