Dear FAC:

Per our discussion on today’s FAC call, the following was sent to House offices regarding the Kucinich Amendment to the Energy and Water Appropriations bill.  The amendment would prohibit the Department of Energy from moving forward with additional loans under the 1703 Loan Guarantee Program.

In addition, the unanimous consent agreement governing the ongoing House debate of the Energy and Water bill provides for consideration of amendments offered by:

• Rep. Marsha Blackburn (R-TN) pertaining to the 1705 Loan Guarantee Program.
• Rep. Jim Jordan (R-OH) limiting funds for Title XVII loan guarantee programs.
• Rep. Cliff Stearns (R-FL) limiting funds to subordinate interest in a loan guarantee.

The House is expected to continue consideration of the Energy and Water bill this evening.  We will provide you with updates as events warrant.

Best,
Manning
 

Support Deployment of Cutting-Edge Energy Technology

Oppose Kucinich Amendment to the FY 13 Energy and Water Bill

Rep. Dennis Kucinich (D-OH) is expected to offer an amendment to the FY 13 Energy and Water bill that would prohibit the Department of Energy (DOE) from moving forward with additional loan guarantees under the Section 1703 program.

This would hinder the deployment of promising energy technologies, and SEIA urges members to vote no on this amendment.

• THE 1703 PROGRAM IS NOT A STIMULUS PROGRAM.  The Section 1703 Loan Guarantee Program was enacted in the Energy Policy Act of 2005, bipartisan legislation signed into law by President George W. Bush.
• The 1703 program supports a variety of electricity generation technologies (e.g., solar, wind or nuclear power plants). 
• The Section 1703 program was crafted with bipartisan support to overcome the great challenges that large nuclear, renewable and other energy projects face obtaining affordable long-term financing in the commercial marketplace.  
• Utility-scale solar power plants with loan guarantees are employing thousands of construction workers, a sector of the economy plagued by high unemployment, and utilizing a nationwide supply chain.
• Utility scale solar projects feature power purchase agreements (PPAs), which are long-term contracts to sell electricity to utilities. These long-term contracts provide a guaranteed stream of revenue that minimizes risk to taxpayers.
• Loan guarantee programs are not unique to DOE. In fact, the federal government administers approximately 70 loan guarantee programs and 63 lending programs to achieve a variety of policy goals:
  1. The U.S. Department of Agriculture (USDA) guaranteed $1.9 billion in farm ownership loans and $1.1 billion in operating loans in FY2011.  Approximately 10,000 agricultural loan guarantees were issued in FY2011. 
  2. The Overseas Private Investment Corporation (OPIC) and the Export-Import Bank also provide loan guarantees for qualified projects. 
  3. A Bloomberg Government study showed that DOE loan guarantees were less than 2% of the federal government’s overall portfolio of loan guarantee commitments.  Housing & Urban Development, the Small Business Administration, Treasury and Veterans Affairs all outpaced DOE in terms of dollars committed in FY2012.

Please do not hesitate to contact SEIA Legislative Affairs or visit SEIA’s website for more information about America’s solar industry.