Energy Department's Chu prepares to spend

Secretary of Energy Steven Chu plans to dispense tens of billions of dollars in loans in the next year in an effort to stimulate the economy and shortcut bureaucracy at the Department of Energy.

In an interview with The Wall Street Journal on Friday, Chu said that the goal is to spend about half of the roughly $37 billion set aside for clean-energy projects in the coming year.

The clean-energy provisions are a central piece of the government stimulus package, which was passed by the House earlier this week. The Senate late Friday reached an agreement on the spending bill so that it could be voted on early next week.

Steven Chu at his former lab at Stanford University.

(Credit: Stanford University)

Existing energy legislation from 2005 set aside loans and grants for energy and auto companies but no money has been dispensed because of a slow approval process, Chu said.

"This is the pace we expect, not three years, but five months." We've got to do this and we've got to do it in a way that has not been done at the Department of Energy," he said.

The amount of money available for clean-energy related projects is actually larger than the $25 billion annual budget of the Department of Energy whose mission is largely tied to protecting the U.S.'s nuclear arsenal.

An analysis by climate change business consulting firm ICT International, which was commissioned by Greenpeace, found that early versions of the stimulus bill had set aside over $50 billion for clean-energy measure, such as smart grid technologies and auto battery research. The American Association for the Advancement of Science put the number at about $37 billion, according to the Journal.

"The synopsis of the loans I've seen in innovative green energy -- they're in the hundred-million dollar range. They're in big hunks of money," Chu said.

The provisions are a mix of direct spending or loan guarantees, which have emerged as a vital source of capital for new energy technologies companies because of the credit crisis.

A number of clean-tech companies are seeking loans from the DOE in order to build manufacturing facilities, which are difficult to get financed as banks have become more conservative or unwilling to lend. Well known clean-tech companies, including Tesla Motors and battery company A123 Systems, have applied for existing loans but haven't received money.

Chu said that less technology-oriented Department of Energy projects could be quickly dispensed through states, including roughly $6 billion set aside to weatherize homes and municipal buildings to be more energy efficient.

"The secretary is committed to streamlining the process and eliminating unnecessary paperwork so that we can make these important investments that create jobs as quickly as possible," Energy Department spokesman Dan Leistikow told Reuters.

In an interview with The Los Angeles Times earlier this week, Chu spoke about the potentially severe economic and environmental impact from climate change, particularly in California.

"I don't think the American public has gripped in its gut what could happen," he told the newspaper. "We're looking at a scenario where there's no more agriculture in California." And, he added, "I don't actually see how they can keep their cities going."

[jake_n]

This guy is very smart and is spending 6 billion where it will count the most on insulating and sealing houses and government buildings. He is being pushed too hard to support new technology when all of his budget could be spent on energy conservation and cleaning up the coal fired generators. These generators are the biggest carbon gas producers we have and we are destroying lakes and forests with sulfur.

[MD_Willington]

The money for homes is for low income home owners if I remember correctly, I'm not considered Low income nor High income, but I cannot get the same loans for updating my house. I'd like to be able to help out too by updating my house, but I'm not sure I can with the way the laws are written. I do not have the disposable income to do it by myself.

Oh well

[rmva]

Clean coal is to the 2000s what ethanol was to the 1990s. It is a hoax, but politicians need to mouth the words to get votes in WV, KY and TN. It will take a hundred years before we can find a real use for the CO2 that comes out of power plant smokestacks. Pretending we can solve the problem by pumping it underground is a delusion.

[nealtl]

Fair enough, but what if what Craig Venter said actually come true, that concentrated CO2 is not a nuisance byproduct but is a commodity (a money making resource)?

Of course, no one knows when this technology will become feasible.

http://www.treehugger.com/files/2008/06/craig-venter-interview.php

[cancercomesfromoil]

Mr. Chu has got to release the DOE ATVM Loan money next week or Tesla, ZAP, Fisker and Enerdel will go out of business. The money was supposed to go out last year and someone is delaying it., but it must be released now or Tesla is gone!

[NocturnalCT]

You've got to love it when banks refuse to lend money to industries of the future. The government steps in, loans money, makes a decent return and banks miss the boat. Serves them right. That's what you get for hawking mortgages to people that can't possibly afford them 2 years after signing.

I think a loan to Tesla is about the safest thing you can do. They can build all the $100K electric race cars they possibly can and they'll all sell. Even if they're not truly eco friendly when you consider the eco-pressure of the batteries and other materials they use. Plenty of rich people left in this time of misery for the masses and those rich folks will gladly go 'green' with a $100K electric car that'll most likely never save it's price premium in fuel.

I wish Mr Chu good luck! Just having a true scientist in the cabinet is a HUGE gain over the last 8 years (at least).

[edwardo65]

A little known company in Tyngsborough, MA is waiting for DOE Loan. The company is Beacon Power. They are a electricity storage company that uses flywheel technology. The company is listed on the Nasdaq under ticker symbol BCON. Take a look at the future of storage for grid frequency regulation and wind power. and get that loan out. BCON can reduce Greenhouse Gas emissions by reducing the need for inefficient coal fired regulators.

[jlbrr]

Glad someone mentioned Beacon Power Corp., a microcap, emerging from 12 years of R&D (partly with DOE funding). Beacon is probably the only new grid application that is truly "shovel-ready" today and whose 100% carbon-free technology -- incredibly high-tech, high-speed flywheels (no fuels, emissions, waste, or hazardous chemicals or materials) -- will immediately start replacing up to 2-3% of the nation's fossil-fuel-based power generation. And they are also strong contenders for storage of wind-generated power. There should be no further delay in their loan guarantee from DOE under Chu.

[jake_n]

MD_Willington,
There is much you can do for yourself at some cost but far less than you would expect. Cellulose blowers can be rented and outside walls insulated by the home owner. Proper technique is important. A hole in the BOTTOM of each channel must be blown first then the top hole is cut and the channel finished. Rolls of ceiling insulation can be purchased as you can afford them and rolled out by the home owner. Blown cellulose also works well for this. A lot of heat loss money can be saved without replacing windows. Old double hung windows can be removed and the balancing weights removed and channels filled with insulation and sealed. Replacement vinyl sliders can then be installed to give the rest of the window a good seal. This is not a highly technical task. Start with a back window and give it a try.