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U.S. Department of Energy
Office of Scientific and Technical Information

Establishing a loan guarantee program to be administered by the Energy Research and Development Administration; 95th Congress, 1st Session

Book ·
OSTI ID:7213657
The Senate Committee on Energy and Natural Resources proposes several amendments to the Federal Nonnuclear Energy Research and Development Act of 1974 and recommends the amended bill for approval. The proposed amendments (S.37) authorize ERDA to use loan guarantees to finance the research, development, and demonstration of energy and energy-related technologies. It also authorizes loan guarantees for the commercial demonstration of biomass conversion to synthetic fuel. The bill allows ERDA, with Congressional approval, to guarantee the repayment of interest, balance of loans, and other financial commitments for research, development, and demonstration projects and guarantees for interest, principal balance, bonds, debentures, and notes in support of biomass projects. A limit of $300 million is set for total guarantees on outstanding indebtedness. The committee's justification is based on the need to incorporate the private sector in development and demonstration efforts and the relatively modest cost of underwriting even a possible 25 percent default compared with the cost of foreign oil. The bill involves no invasion of personal privacy and will not noticeably increase paperwork. (DCK)
OSTI ID:
7213657
Country of Publication:
United States
Language:
English