US Department of Energy wants to lend $ 43 billion for EV and clean energy projects
Secretary of the US Department of Energy Jennifer granholm announced earlier this month that it will be relaunching the agency Loan Programs Office (LPO), which funded Tesla. He’s got $ 43 billion as a lending authority for large-scale energy infrastructure projects and the manufacture of advanced technology electric vehicles.
US Department of Energy loan plan
The US Department of Energy plans to inject billions of dollars into the electric vehicle industry to boost domestic production and deployment. Securing America’s Future Energy projects that the United States could create 647,000 jobs in electric vehicles in the next five years.
On the clean energy side, the LPO has $ 4.5 billion for renewable energy and energy efficiency projects – about 10% of the existing $ 43 billion.
Experts called for LPO reforms that will make it easier for applicants to apply for and access funds, including changes to application fees and other cumbersome aspects of the application process. The program is also expected to build trust among applicants after years of inactivity under the Trump administration, a step Granholm took in appointing a clean energy contractor. Jigar shah to run the office. Among other things, Shah noted the need to focus on the development of cleaner energy and the resulting economic development opportunities for tribal lands.
The LPO has three main departments: Title XVII for Energy, the Advanced Technology Vehicle Manufacturing (ATVM) Loan Program for Transportation, and the Tribal Energy Loan Guarantee Program.
Title XVII is responsible for notable clean energy successes, such as the large scale solar market in the USA. The Loan Program’s First Investments in Large-Scale Solar Power leads to a boom in private sector funding in the solar industry shortly thereafter. Solar prices have dropped by 70% Over the past decade and into 2019, the industry generated more than $ 18 billion in investment in the U.S. economy. The solar sector now has one of the fastest growing employment rate in the United States and should be the country main source new electricity production this year.
Advanced Technology Vehicle Manufacturing Loan Program: The Advanced Technology Vehicle Manufacturing (ATVM) loan program has more than $ 17 billion remaining for technologies, including electric cars.
- In 2010, ATVM funded the nation’s first two electric vehicle manufacturing plants by Nissan and Tesla, with Tesla repaying its entire $ 465 million loan nine years ahead of schedule.
- ATVM loans have been used to build or re-equip factories in eight states: Illinois, Michigan, Missouri, Ohio, Kentucky, New York, Tennessee and California. These factories have produced millions of advanced technology vehicles.
Tribal Energy Loan Guarantee Program: The Tribal Energy loan guarantee program was launched in 2018. $ 2 billion it can provide partial loan guarantees to an Indian tribe or a federally recognized tribal energy development organization. The program can repay up to 90% of the principal outstanding and interest due on eligible loans granted for any type of energy development carried out on tribal lands.
Zoe Lipman, Director, Manufacturing and Advanced Transportation, BlueGreen Alliance, which brings together unions and environmental organizations, said Electrek:
Through LPO’s energy and manufacturing loan and grant programs, we have the opportunity to make large-scale investments that not only make the United States the leader in the deployment of clean and advanced energy technologies. , but we also guarantee to re-equip construction plants with clean vehicles and energy technologies. of the future, close critical supply chain gaps and reinvest to transform critical energy-intensive industries. By using these avenues, we can maintain and create good jobs in America and help ensure cleaner, safer jobs and communities here and around the world.
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