Source: http://images.jw.com/ealert/opportunityincrisis/2009/0323.html
Timestamp: 2019-04-21 00:45:39+00:00

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On February 17, 2009, President Obama signed into law a $787 billion stimulus package designed to jump-start the U.S. economy. The American Recovery and Reinvestment Act of 2009 (Recovery Act) included $43 billion for energy-related programs. A significant portion of this energy funding is available for solar energy technology development and deployment. These new funding and incentive programs will be administered on a competitive basis—businesses need to act quickly to position themselves to receive funding authorized by the Recovery Act.
The Department of Energy (DOE) has launched a website that contains information on the DOE's programs launched under the Recovery Act. CLICK HERE to view it.
The Recovery Act provides $2.5 billion in funding for existing DOE programs, which include the Solar Energy Program, the Wind and Hydropower Program, and the Geothermal Energy Program.1 The details of how the funding will be appropriated have not yet been released. However, the DOE has signaled that it has been working to simplify existing programs and plans to administer this $2.5 billion appropriation through these streamlined versions of existing programs. For more information about DOE's Solar Energy Technologies Program, CLICK HERE.
The Recovery Act created the Innovative Technology Loan Guarantee Program, a new, temporary loan guarantee program to be administered by the DOE. The Recovery Act authorized the DOE to distribute $6 billion in loan guarantees through this program.
Three types of projects are eligible: (1) renewable energy systems; (2) electric power transmission systems; and (3) leading edge biofuels projects currently performing at the pilot or demonstration scale.
The DOE has not yet released the details of how the Program will be structured, but DOE Secretary Steven Chu has stated that the Department is working hard to develop the guidelines for the program and hopes to make the first round of loan guarantees available by late April or early May. Secretary Chu has stated that the loan guarantee application has been shortened from around 1,000 pages to around 50 pages in order to expedite the process.
Under past programs, the DOE has only guaranteed loans where there is a reasonable likelihood that the borrower will be able to repay the principal and the interest on the loan. Additionally, the DOE has required in the past that the loan guarantee not exceed 80% of the total project cost.
For more information on the Loan Guarantee Program, CLICK HERE.
The Recovery Act provides $4.5 billion in funding for electricity delivery and energy reliability programs authorized by Title XIII of the Energy Independence and Security Act of 2007.6 The DOE has already developed programs for funding "smart grid" projects; the Recovery Act provides additional funding for these programs.
For information about the DOE's ongoing Smart Grid Program, CLICK HERE.
Recipients of DOE funding must supply at least 20% of the funding for the project from non-federal sources. The statute provides an exclusion for development activities that are of a "basic or fundamental nature," and the non-federal percentage requirement may be reduced if the Secretary of Energy determines that the reduction is "necessary and appropriate."
1	 American Recovery and Reinvestment Act of 2009, Pub. L. 111-5, Title IV.
American Recovery and Reinvestment Act of 2009 § 406, sec. 1705.
American Recovery and Reinvestment Tax Act of 2009 § 1101 (to be codified at 26 U.S.C. § 45).
American Recovery and Reinvestment Tax Act of 2009 § 1102 (to be codified at 26 U.S.C. § 48).
American Recovery and Reinvestment Tax Act of 2009 § 1603.
American Recovery and Reinvestment Act of 2009, Title IV.
Energy Policy Act of 2005, Pub. L. 109-58, § 988, 119 Stat. 594, 910–11 (codified at 42 U.S.C. § 16352 (Supp. V 2006)).
Jackson Walker is excited to announce its Opportunity in Economic Crisis Task Force, which provides coordinated and comprehensive support and advice to clients with regard to opportunities contained in the American Recovery and Reinvestment Act of 2009. Please CLICK HERE to learn more about the experience Jackson Walker can bring to bear in this area and CLICK HERE to go directly to other e-Alerts on this subject.
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Opportunity in Economic Crisis e-Alert is published by the law firm of Jackson Walker L.L.P. to inform readers of relevant information in financial law and related areas. It is not intended nor should it be used as a substitute for legal advice or opinion which can be rendered only when related to specific fact situations. For more information, please call 1.866.922.5559 or visit us at www.jw.com.

References: § 406
 § 1101
 § 45
 § 1102
 § 48
 § 1603
 § 988
 § 16352