United States: Department of Energy Loan Office Announces Simplified Title XVII Application Process
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The Loan Program Office (LPO) of the U.S. Department of Energy recently announced streamlined application process for Title XVII programs.
According to Title XVII Energy Policy Law 2005LPO operates three separate loan programs:Renewable energy and efficient energy, Advanced Fossil as well as Advanced nuclear– from up to USD 4.5 billion, USD 8.5 billion and USD 10.9 billion, respectively, in the powers to guarantee loans currently available under them.
For Title XVII programs, the simplified application process includes a clearance fee that will now only be payable on closing financial statements under the Energy Law 2020 from January 1, 2021 when applying for Part I and Part II, and pay costs at different stages of the due diligence process. “Effective January 1, 2021, applicants” who reach financial close will pay sufficient loan processing fees to cover the applicable administrative costs associated with the review and due diligence of their loan guarantee application. ” it says that the clearance fee will cover the following costs:
Application fee … coating[ing]costs associated with the financial and technical analysis of the LPO applications of Part I and II. The commission is US $ 150,000 for projects requesting a loan amount not exceeding US $ 150 million and US $ 400,000 for projects exceeding US $ 150 million.
Commission fee … coating[ing]the underwriting process following the application for Part I and Part II and is calculated as a percentage of the requested loan amount; as well as
Third Party Consultant Fees… reimburse[ing] LPO to pay the out-of-pocket expenses of third-party consultants hired by the DOE during the due diligence phase, including external legal consultants, independent engineers, market analysts, and financial analysts.
In addition, the LPO simplified the application process for Section XVII and, for Part I applications, the LPO review:
. will focus on assessing whether Project (1) is in line with acceptable technology in accordance with [related]
Petition [link added], (2) prevents, reduces, or captures anthropogenic emissions of greenhouse gases or air pollutants, (3) uses new or significantly improved technologies over commercial technologies in operation in the United States (innovative technologies), and (4) is located in the United States States.
Although LPO has always required compliance with environmental requirements, a new mandatory contribution to the review of Part I is “Appendix C – Summary Table of Life Cycle Greenhouse Gas Emissions Data” of the relevant queries. The LPO states that applicants applying for Part I “must ensure that
[the worksheet] filled out accurately and completely with all carbon inputs and outputs. “
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