U.S. Department of Energy Loan Programs Office Announces Streamlined Application Process for Title XVII – Energy and Natural Resources
United States: U.S. Department of Energy Loan Programs Office Announces Streamlined Title XVII Application Process
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The US Department of Energy’s Office of Loan Programs (LPO) recently announced a streamlined application process for its Title XVII programs.
Under Title XVII of the Energy Policy Act of 2005, LPO administers three separate loan programs – Renewable and Energy Efficient, Advanced Fossil and Advanced Nuclear – with a maximum of $ 4.5 billion, $ 8.5 billion dollars and $ 10.9 billion, respectively, in loan guarantee authorization currently available below.
For Title XVII programs, the streamlined application process includes an original fee which, as of January 1, 2021, will now only be payable at financial close under the Energy Law of 2020. Previously , all applicants were required to “submit a non-refundable fee.” when submitting Part I and Part II requests, as well as paying fees at different stages of the due diligence process. As of January 1, 2021, applicants “who reach financial close will pay a set-up fee sufficient to cover the applicable administrative expenses associated with the review and due diligence of their loan guarantee application.” The ad stated that the origination fee would cover these costs:
Registration fees . blanket[ing]costs associated with LPO’s financial and technical review of Part I and Part II applications. The fees are $ 150,000 for projects requesting a loan amount that does not exceed $ 150 million and $ 400,000 for projects that exceed $ 150 million.
Installation costs . blanket[ing]the underwriting process following the Part I and Part II application and is calculated as a percentage of the loan amount requested; and
Third party consultant fees. refund[ing] LPO for disbursements of third party consultants engaged by DOE during the due diligence phase, including external legal consultants, independent engineers, market analysts and financial analysts.
Additionally, LPO has streamlined the Title XVII application process and, for Part I applications, the LPO review:
.will focus on the assessment whether the project (1) qualifies as an eligible technology under the [related]Solicitation [link added], (2) avoid, reduce or sequester anthropogenic emissions of greenhouse gases or air pollutants, (3) uses new or significantly improved technology compared to commercial technology in use in the United States (innovative technology), and (4) is located in the United States.
Although the LPO has always required environmental compliance, a newly required entry in the Part I review is the âAttachment C – Summary Life Cycle GHG Emissions Data Worksheetâ of the associated solicitations. The LPO says Part I applicants “should make sure
[the worksheet] is accurately and completely filled with all carbon inputs and outputs. “
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