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Eligibility

Each of the three programs within the Loan Programs Office has its own eligibility requirements. Below is a general overview of each program’s requirements.

1703 Eligibility

The Section 1703 Loan Program authorizes the issuance of loan guarantees to support innovative clean energy technologies. To be eligible for a 1703 loan guarantee, a project must:

1. Avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse gases;

2. Employ “new or significantly improved technologies” as compared to “commercial technologies” in service in the United States at the time the guarantee is issued (as each term is defined in 10 CFR Part 609, as set forth below):

  • ”New or Significantly Improved Technology” means a technology concerned with the production, consumption or transportation of energy and that is not a Commercial Technology, and that has either:
    • Only recently been developed, discovered or learned; or
    • Involves or constitutes one or more meaningful and important improvements in productivity or value, in comparison to Commercial Technologies in use in the United States at the time the Term Sheet is issued.”
  • “Commercial Technology” means a technology in general use in the commercial marketplace in the U.S. at the time the term sheet is issued by the Department;
    • A technology is in general use if it has been installed in and is being used in three or more commercial projects in the United States in the same general application as in the proposed project, and has been in operation in each such commercial project for a period of at least five years;

3. Be located in the U.S. (foreign ownership or sponsorship of the project is permissible as long as the project is located in one of the fifty states, the District of Columbia or a U.S. territory).

4. Be in one of the following categories:

  • Renewable energy systems;
  • Advanced fossil energy technology (including coal gasification meeting the criteria in Section 1703(d) of the Energy Policy Act of 2005);
  • Hydrogen fuel cell technology for residential, industrial, or transportation applications;
  • Advanced nuclear energy facilities;
  • Carbon capture and sequestration practices and technologies, including agricultural and forestry practices that store and sequester carbon;
  • Efficient electrical generation, transmission, and distribution technologies
  • Efficient end-use energy technologies;
  • Production facilities for fuel efficient vehicles, including hybrid and advanced diesel vehicles;
  • Pollution control equipment; or
  • Refineries, meaning facilities at which crude oil is refined into gasoline.

5. Submit a complete application pursuant to a Solicitation.

ATVM Eligibility

The ATVM Program authorizes the issuance of loans to support the manufacture of “advanced technology vehicles” and “qualifying components” (as each term is defined in 10 CFR 611.2).  To be eligible for an ATVM loan an applicant must:

1. Be technically and financially eligible to finance the cost of either:

  • Reequipping, expanding or establishing manufacturing facilities in the United States to produce advanced technology vehicles  (ATVs) or qualifying components; or
  • Engineering integration performed in the United States of ATVs or qualifying components.

2. Be an automotive manufacturer satisfying specified fuel economy requirements or a manufacturer of a qualifying component.
3. Be financially viable without the receipt of additional federal funding for the proposed project.

4. Submit a complete application.

Section I of the “Updated Guidance for Applicants to Advanced Technology Vehicles Manufacturing Loan Program”  has more information on general ATVM Program eligibility requirements.

1705 Eligibility

The Section 1705 Loan Program authorized loan guarantees for certain renewable energy systems, electric power transmission systems and leading edge biofuels projects that commenced construction no later than September 30, 2011. The authority to issue loan guarantees under the Section 1705 Loan Program expired on September 30, 2011. LPO will continue to actively monitor projects that previously received loan guarantees under the program, but no new loan guarantees will be issued under the Section 1705 program.

Other Government Programs for Clean Energy Projects

If you are not eligible for the ATVM Loan Program, click here to learn about several other government programs that offer support for clean energy projects.