Government Financing Update – September 2, 2010

U.S. Department of Energy
Loan Guarantee Program

DOE Extends Submission Deadline for Innovative Technology Loan Guarantee Applications, Issues New Solicitation for Commercial Technology Projects, and Launches New Online Application Portal

Deadline Extended for Innovative Technology Loan Guarantee Application
The Department of Energy (DOE) has extended the Part I application deadline for the July 2009 innovative energy efficiency, renewable energy, and advanced transmission and distribution technologies solicitation to October 5, 2010. The Part II application deadline is December 31, 2010.

New Solicitation for Projects that Manufacture Commercial Technology Renewable Energy Systems and Components

Under the new Solicitation, DOE seeks applications for loan guarantees to finance projects and facilities located in the U.S. that manufacture commercial technology renewable energy systems or related components. All loan guarantees under this Solicitation will be issued under Section 1705 of Title XVII of the Energy Policy Act of 2005.

Funding Available: DOE will make up to $750,000,000 available to pay the credit subsidy costs of loan guarantees issued as part of this Solicitation, which could support up to $7.5 billion in guaranteed loan volume. The loans guaranteed will be senior secured debt funded by the Federal Financing Bank.

Application Process
The application is divided into a Part I submission and a more detailed Part II submission. Detailed instructions for the contents of the Parts I and II submissions are set forth in Attachment A to the Solicitation.

Part I – Part I of the application provides DOE with a summary level description of the project or facility, technical information, background information on management, financing strategy, and progress to date of critical path schedules. These schedules include items such as obtaining licenses or regulatory permits and approvals, site preparation and long lead procurements, and are used as a basis for determining the overall eligibility of the project or facility.

Part II – The Part II submission may be filed at any time after DOE notifies an applicant that its Part I submission is complete and its project or facility has been determined to be an eligible project. The Part II submission consists of the items summarized in Attachment A to the Solicitation as well as other information that may be requested to facilitate DOE's due diligence review. Part II submissions may be made in one of three (3) rounds of review (see Application Deadlines). While all Part II submissions shall be competitively evaluated against all others submitted during the corresponding round of review, submissions will be reviewed in the order they are received. Therefore, earlier submissions may enjoy a first mover's advantage.

Please note: Important information re: registration and other pre-submission requirements are included in the Solicitation. Please refer to the Solicitation for details.

Application Deadlines

Eligible Projects
To be eligible, a project or facility must meet the following requirements:

• Manufactures "Commercial Technology" products that support the generation of electricity or thermal energy from renewable sources. "Commercial Technology" means a technology that (i) has been installed in and is being used in three or more commercial projects anywhere in the world in the same or a substantially similar manner as in the proposed project, and (ii) has been in operation in each such commercial project for a period of at least two years.
• Has project costs greater than $75,000,000.
• Is able to obtain a credit rating equivalent of "BB" or better from Standard & Poor's or Fitch, or "Ba2" or better from Moody's, as evaluated without the benefit of any DOE guarantee or any other credit support.
• Must "commence construction" on or before September 30, 2011.*
• Will create or retain jobs in the United States.
• Otherwise meets all applicable requirements of Title XVII of the Energy Policy Act, including Section 1705, the Solicitation, including all attachments, and all applicable requirements of the Recovery Act.

The following is a sample list of project types illustrative of eligible projects:

• Wind energy component or systems manufacturing facilities;
• Solar photovoltaic (PV) component or system manufacturing facilities;
• Concentrated solar power component or system manufacturing facilities;
• Hydropower component or system manufacturing facilities;
• Geothermal component or system manufacturing facilities;
• Other geothermal power cycle component or system manufacturing facilities; or
• Ocean wave, tidal, and river current (e.g., hydrokinetic) component or system manufacturing facilities.

Evaluation Criteria for Part II Submissions

Non-Refundable Fees
Non-refundable fees due to the DOE during the course of the application and loan guarantee process must be paid directly to the U.S. Department of Treasury and include the following:

New Application Portal
On August 12, 2010, the DOE announced the launch of a new Application Portal for the Loan Guarantee Program. The Application Portal enables applicants to submit application materials electronically and provides informational resources about the program and application submission procedures. DOE advises that all applications under any solicitation are subject to the detailed terms and provisions of the applicable solicitation. The solicitation summary information provided on the Application Portal is intended only as a general guide.

* The term "commencement of construction" means that (i) the borrower has completed all pre-construction engineering and design, has received all necessary licenses, permits and local and national environmental clearances, has engaged all contractors and ordered all essential equipment and supplies as, in each case, can reasonably be considered necessary so that physical construction of the project may begin (or, if previously interrupted or suspended, resume) and proceed to completion without foreseeable interruption of material duration, and (ii) such physical construction (including, at a minimum, excavation for foundations or the installation or erection of improvements) at the primary site of the project has begun (or resumed).