[Congressional Record (Bound Edition), Volume 157 (2011), Part 5]
[Extensions of Remarks]
[Page 6245]
[From the U.S. Government Publishing Office, www.gpo.gov]




       SUPPORT THE DEPARTMENT OF ENERGY'S LOAN GUARANTEE PROGRAM

                                 ______
                                 

                        HON. MAURICE D. HINCHEY

                              of new york

                    in the house of representatives

                        Thursday, April 14, 2011

  Mr. HINCHEY. Mr. Speaker, President Obama recently unveiled a new 
plan to reduce foreign oil imports by one-third over the next decade, 
which is timely given the instability sweeping across oil producing 
countries in the Middle East. To achieve that goal necessarily involves 
more fully developing renewable energy which his Administration and the 
Congress are committed to achieving. In my district, I am pleased that 
over a dozen new solar and solar-related companies have opened in the 
last three years, creating hundreds of jobs while reducing our reliance 
on foreign sources and protecting our environment.
  The Department of Energy's Loan Guarantee Program is a critical 
factor in our country's effort to be a world leader in renewable 
energy. I would like to place in the Record a recent article in the 
Huffington Post on the importance of DOE's loan guarantee program and 
the potential loss of thousands of megawatts of bankable electricity 
and the tens of thousands of jobs if it is not allowed to continue.

                       A Win-Win for Clean Energy

                          (By Uwe T. Schmidt)

       The nuclear tragedy in Japan and the disturbing upheaval in 
     Libya and the Middle East have dominated the headlines, but 
     it also serves as a haunting reminder that America's own 
     energy security may be in peril unless we accelerate efforts 
     to more fully develop energy alternatives that are reliable, 
     safe and sufficient to meet our future needs.
       Achieving energy independence has been a laudable but 
     daunting goal since the first energy crisis in 1979. 
     Fortunately, the Obama administration and Congress have 
     embraced policies intended to spur investment and development 
     in renewable energy projects, but it will take a major effort 
     by the private sector and the support of government at all 
     levels.
       The private sector is doing its part. They have invested 
     heavily in new, innovative technologies, assembled the 
     engineering and technical support, arranged the necessary 
     financing, and have been engaged at all levels to secure the 
     Federal and local permitting and ultimately the requisite 
     utility and distribution outlets.
       Solar Trust of America (STA) is one of many American 
     companies that are investing millions and utilizing proven 
     technology to achieve California's ambitious goal of 33 
     percent renewable energy by year 2020. Such goals are 
     unlikely without private-public collaboration. It is our job 
     to harness the solar potential in areas like STA's thermal 
     solar project site near Blythe in Southeastern California, 
     utilizing our parabolic trough technology that will 
     ultimately produce 1,000 megawatts of bankable electricity 
     that is sufficient to supply 300,000 households with 
     electricity, avoiding over 2,000,000 tons of carbon dioxide 
     emissions.
       Our business model is unique in that it encompasses the 
     entire American-based supply chain that involves engineering 
     and technology specialists, financing through private equity 
     funds, creating new demands for steel and other metals, 
     project development and construction of the facilities, and 
     management and operation of the plants.
       Finally, it is a job producer. The first two of our four MW 
     Blythe plants will employ 1,000 union construction jobs, 
     another 7,500 supply chain jobs throughout the country, 100 
     on-going plant operations and post construction positions 
     and, of course, the residual economic benefits to the local 
     communities.
       What is the government's role and how can it partner with 
     STA and other companies to achieve these goals? Congress 
     previously authorized a renewable energy loan guarantee 
     program which is vital to securing the necessary financing to 
     build large scale, sophisticated solar power plants and other 
     renewable projects.
       Without it, U.S. companies will be confronted with the 
     sudden reversal of a national policy that two years ago 
     encouraged them to invest in energy alternatives. Our Blythe 
     plant is one of several major solar projects that has 
     advanced through a diligent DOE review process for over a 
     year and has met all the Federal and state permitting 
     requirements.
       STA and other solar companies have commenced preliminary 
     site work just as Congress is considering legislation that 
     would all but eliminate the loan guarantee program. 
     Ironically, the House of Representatives passed a spending 
     bill last month that would delete the loan guarantee program 
     for renewable and clean coal technologies but left untouched 
     loan guarantees for building nuclear plants.
       This is not a government grant but simply a guarantee to 
     facilitate the financing on loans to bring advanced 
     technology to the market. Every dollar appropriated by 
     Congress to DOE's Loan Guarantee Program spurs $13 dollars in 
     private investments and indeed whatever taxpayer funds are 
     involved are repaid in full with interest.
       The DOE loan guarantee is a ``win-win'' for government and 
     the companies involved and will not only advance the cause of 
     energy independence but will create hundreds of thousands of 
     jobs across the country.
       Yet all this is at risk if Congress rolls back the program 
     and put into jeopardy the enormous amounts of private capital 
     already committed and the tens of thousands of sustainable 
     jobs involved in the construction and operation of the 
     plants. Apparently there are no guarantees when the Congress 
     acts in a politically charged atmosphere.
       For our nation to fully develop renewable energy, it is 
     clear that neither the private sector nor government can do 
     it alone. It requires a partnership.
       As we advance into this new millennium, it is now 
     understood that our raw resources are finite, the planet is 
     fragile, and that energy consumption to sustain growth 
     globally is our greatest challenge. The answer to all this is 
     renewable energy. There are no boundaries or limits to what 
     we can accomplish if we work together.

                          ____________________