The US Department of Energy (DOE) Loan Guarantee Program has released a Request for Information (RFI) to which DOE is seeking responses from State, Regional and Local Development Finance Organizations (DFOs) interested in submitting eligible alternative energy projects for loan guarantees as part of the DOE’s new Financial Institutions Partnership Program (FIPP).

The purpose of the RFI is to allow DOE to review the capabilities, resources and experience of responding DFOs and to provide guidance to them. Eligible DFOs deemed capable of acting as “lender applicants” will be able to review and analyze projects, retain a share of credit risk in a project’s financial structure, and recommend the approval of projects to DOE’s staff and Credit Review Board for loan guarantees. While not all DFOs will initially be deemed capable to serve in this role, DOE expects that the number of eligible DFOs will grow over time, extending the reach of the Loan Guarantee Program.

The “lender applicant” concept and the issuance of this RFI to public and non-profit DFOs represent a new approach for the Loan Guarantee Program. DOE seeks to achieve speed and volume in loan origination, fulfilling ARRA’s economic stimulus objectives while upholding sound underwriting and portfolio management principles. Partnering with institutions possessing financial structuring capability, capital markets experience, access to grant or equity capital, and a strong commitment to making sound underwriting judgments is viewed by the DOE as the best way to achieve both fundamental goals.

All recipients are strongly encouraged to consider responding to the RFI. Resources will be allocated to program outreach, education, training, and technical assistance in the coming months in order to build the capacity of DFOs and cooperating agencies in alternative energy finance. This effort will provide up-to-date information on the expanding array of Federal grant, guarantee and tax incentive programs and how they may used, together or separately, to assemble financing packages for alternative and innovative energy projects. It will also make advisers available to assist DFOs in making their applications and create on-line resources for key program documents and networking among DFOs.

In order to facilitate the process, DOE will be scheduling a webinar specifically for prospective DFOs focusing on the process for responding to the RFI. A more general webinar on FIPP and the process for submitting eligible projects under FIPP was held on October 22 and has been archived at http://www.lgprogram.energy.gov/webinars/FIPP102209.pdf and http://www.usaenergyadvisors.com/docs/DOE-LGP-FIPP102209_0001.wmv. Sign up directions for the DFO webinar will follow.

The RFI is provided as an attachment and may also be found at http://www.lgprogram.energy.gov. Further guidance for completing the RFI will be provided at www.sdsgroup.com.

Respondents to this RFI may forward all questions by e-mail to lgprogram@hq.doe.gov or to the following adviser:

Strategic Development Solutions
11150 Olympic Boulevard, suite 910
Los Angeles, California, 90064
Email: sgummi@sdsgroup.com

Questions and answers will be compiled and posted on the FAQ page of the Loan Guarantee Program’s website. The DOE looks forward to receiving and reviewing your responses.