This marks the second time in a year that Obama’s Democratic party has slashed the size of the renewable energy and transmission loan guarantee program leaving it at about $25 billion – less than half of what the Democrats originally promised. The program was initially backed by about $60 billion in loans under the 2009 economic stimulus package, but was reduced months later to about $40 billion in order to finance a program that offered vouchers for consumers to trade gas intensive cars for more efficient vehicles.
"Unless this funding is restored by Congress, several meritorious renewable energy proposals in
The decreased funds in the RE program will be allocated for a federal program that provides health care for lower income Americans which will affect RE projects that have applied more recently for governmental funding. An Energy Department representative said that even with the reduction in funding, the Obama administration would have enough for existing projects in the pipeline as well as for some additional projects.
"Expectations are that another $20 billion or so in applications are in various stages and no money would now be available to them," said Bill Wicker, a spokesman for the Senate Energy and Natural Resources Committee. About 55 projects seeking about $15 billion of loan guarantees have completed some early stages of review but have not yet entered a key stage known as due diligence, he said.
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