U.S. Senator Todd Young (R-Ind.) Tuesday announced new legislation to revitalize the Department of Energy’s (DOE) loan guarantee program and incentivize energy producers to construct new, cleaner, and more efficient coal-fired units.
The Reinvigorating American Energy Infrastructure Act, S.3653, would expand eligibility for DOE’s existing loan guarantee program to high efficiency, low emission generating coal plants, also known as HELE units. By broadening the eligibility for DOE’s loan program, the legislation aims to encourage reinvestment in coal technology.
“Indiana’s coal producers provide affordable, reliable energy to homes and businesses throughout the Midwest,” said Senator Young. “My bill will help ensure that this vital energy source is competing on a level playing field while also keeping up with advances in technology that can lead to cleaner and more efficient coal-fired power plants.”
DOE’s energy loan guarantee program dates back to the 1970s. Most recently, the Energy Policy Act of 2005 established a loan guarantee program known as Section 1703, which is focused on supporting clean innovative technologies without a history of successful commercial operation. However, the DOE loan program has not been heavily utilized due to impracticality of loan-eligible projects. By widening the eligibility criteria for the DOE loan program, this legislation aims to open up this program to utilization by coal entities.
Click here to view the bill text.
