• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 3 mins Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 3 hours China's Blueprint For Global Power
  • 7 hours IMO 2020:
  • 9 hours World Stocks Drop And Futures Tread Water After China Reports Worst GDP Growth In 30 Years
  • 21 mins The Ultimate Heresy: Technology Can't Fix What's Broken
  • 3 hours Brexit agreement
  • 17 hours National Geographic Warns Billions Face Shortages Of Food And Clean Water Over Next 30 Years
  • 17 hours ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 14 hours Why did Aramco Delay IPO again ? It's Not Always What It Seems.
  • 10 hours Deepwater GOM Project Claims Industry First
  • 17 hours Idiotic Environmental Predictions
  • 17 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
Gloria Gonzalez

Gloria Gonzalez

Gloria is a writer for Environmental Finance.Environmental Finance is the leading global publication covering the ever-increasing impact of environmental issues on the lending, insurance, investment…

More Info

Premium Content

Renewable Energy Projects Under Attack by Republicans

Republicans in the US House of Representatives have proposed gutting popular government programmes that have eased financing of renewable energy projects.

House Republicans determined to curb government spending have released their proposal for a continuing resolution (CR) to fund the US federal government, which aims to cut spending by $74 billion from now until October. A CR is a type of appropriations bill used by the Congress to fund government agencies if a formal appropriations bill has not been signed into law by the end of the Congressional fiscal year. It provides funding for existing federal programmes at current or reduced levels.

One provision would cut $900 million from the Department of Energy’s (DOE’s) Office of Energy Efficiency and Renewable Energy (EERE), which provides project grants, and the remaining $1.4 billion from the DOE’s loan guarantee programme.

“It’s an effort to kill the EERE and to do away with the loan guarantee programme,” John Pierce, a partner with law firm Wilson, Sonsini, Goodrich and Rosati, told attendees of the Geothermal Energy Finance Forum in New York on Wednesday.

“If those programmes are undercut, it obviously undermines other renewables, but frankly it undermines what little the geothermal industry is getting,” he added.

There is a reserve that allows the DOE to write a certain amount of loan guarantees, but taking $1.4 billion out of the programme would force the DOE to collect credit subsidies, effectively charging premiums for writing guarantees, said Keith Martin, co-head of the project finance group of law firm Chadbourne & Parke.

“All we have are numbers at this point,” he said. But “I think that’s an issue.”

Projects with conditional commitments at risk

A major concern, if the proposal becomes law, is what this means for renewable energy projects that only have conditional commitments from the loan guarantee programme, Martin said. The DOE has issued 10 conditional commitments, including a $102 million commitment for a 22MW project by US Geothermal.

“Would they have to now pay a large premium?” he asked.

But Martin cautioned that the House changed hands to the Republicans in the 2010 midterm elections.

“The House is largely irrelevant to the process,” he said. “It was irrelevant when it was in Democratic hands. Everything is decided in the Senate where you need 60 votes. This is the first round. We’ll see what happens in the Senate.”

By. Gloria Gonzalez

Source: Environmental-Finance




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play