Applicants to the Loan Programs must be able to demonstrate adequate capital to support their project. Eligible LPO projects include technologies that are well on their way to being developed for commercial- and utility-scale adoption. Companies with technologies still in the research and development phase or in early- to mid-stage development are unlikely to be selected and are encouraged to postpone applying to the program until they meet all requirements referenced in the applicable solicitation for Title XVII programs or Section 136 and the Interim Final Rule for the ATVM Loan Program.
ATVM Loan Program
For ATVM loan requirements, read Section 136 and the implementing Interim Final Rule (10 CFR 611).
To participate in The ATVM Loan Program, an applicant must manufacture ATVs or ATV components. An applicant must also demonstrate that the project is financially viable without further additional federal funding (not including the ATVMLP loan).
If the applicant is an ATV manufacturer that built vehicles in model year 2005 that were subject to Corporate Average Fuel Economy (CAFE) standards, the applicant must demonstrate that the adjusted average fuel economy for the vehicle fleet you produced in the most recent year for which final CAFE compliance date is available is at least equal to the adjusted average fuel economy of the applicant’s fleet for model year 2005.
If the applicant is an ATV manufacturer that did not build vehicles in model year 2005 that were subject to CAFE standards, the applicant must demonstrate that the projected combined fuel economy for the vehicle being financed with the ATVM loan is at least equal to the industry adjusted average fuel economy for equivalent vehicles built in model year 2005.
ATV Component Manufacturers
Before the ATVM Loan Program issues a conditional commitment letter to an ATV component manufacturer, the applicant must demonstrate to the satisfaction of the ATVM that the ATV component will be installed in an ATV.
ATVM Loan Program applicants must be financially viable without the receipt of additional federal funding for the proposed project other than the ATVM loan. This requires a determination by the ATVM Loan Program that (i) there is a reasonable prospect that the applicant will be able to pay principal and interest as and when due under the ATVM loan and (ii) the applicant has a net present value that is positive, taking all costs, existing and future, into account. 10 CFR 611.100(c) sets forth some of the factors considered by the ATVM Loan Program in determining the applicant’s financial viability
ATVs: ATVs are either: i. Ultra efficient vehicles (UEVs); or ii. Passenger automobiles or light duty trucks that meet the emission and fuel economy standards set forth in the definition of “advanced technology vehicle” in 10 CFR 611.2.
UEVs: UEVs are fully closed compartment vehicles designed to carry at least two (2) adult passengers that achieve: (i) at least 75 miles per gallon while operating on gasoline or diesel fuel, (ii) at least 75 miles per gallon equivalent while operating as a hybrid electric-gasoline or electric-diesel vehicle, or (iii) at least 75 miles per gallon equivalent while operating as a fully electric vehicle.
ATV Components: ATV components are components that are designed for ATVs and installed in ATVs for the purpose of meeting the emission and fuel economy standards set forth in the definition of “advanced technology vehicles” in 10 CFR 611.2.
Sample ATVM Projects
Visit the ATVM projects section of our projects page website to learn more about existing ATVM projects.
Here are two sample ATVM projects:
- Ford Motor Company is using a $5.9 billion loan to upgrade factories across Illinois, Kentucky, Michigan, Missouri, and Ohio and to introduce new technologies that will raise the fuel efficiency of more than a dozen popular vehicles. The project will convert nearly 33,000 employees to green manufacturing jobs.
- Nissan is using a $1.4 billion ATVM loan to retool their Smyrna, Tennessee, manufacturing facility and construct one of the largest advanced battery manufacturing plants in the United States. The plant will be capable of producing 200,000 advanced-technology batteries a year.
Section 1703 Loan Guarantee Program
To participate in the Section 1703 Loan Program, an applicant must be located in the U.S., employ a new or significantly improved technology that is NOT a commercial technology, and meet Davis Bacon requirements.
Innovative clean energy technologies are eligible for the Section 1703 Loan Program. However, technologies must avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse gases, and commercial technologies (i.e., Technologies with more than three implementations that have been active for more than five years) are NOT eligible for The Section 1703 Loan Program.
Technologies LPO considers include:
- Wind and hydropower,
- Advanced fossil energy coal,
- Carbon sequestration practices/technologies,
- Electricity delivery and energy reliability,
- Alternative fuel vehicles,
- Industrial energy efficiency projects; and
- Pollution control equipment.
For more detailed Section 1703 eligibility requirements, click here.
The Section 1703 Loan Program is actively reviewing applications; however, currently there are no open solicitations under the program. Please check our Solicitations page regularly for updates. Potential applicants are encouraged to become familiar with Title XVII, the Final Rule and Section 406 of the American Recovery and Reinvestment Act (ARRA) of 2009.
Section 1705 Loan Guarantee Program
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 1705 program.