California Democratic Sen. Dianne Feinstein is fighting a Republican proposal now in the House of Representatives to eliminate a key federal program that provides loan guarantees for job-generating renewable energy projects such as Solar Millennium's Blythe project east of the Coachella Valley. As part of the Republican-proposed continuing resolution to keep the government running now on the House floor, the Department of Energy's Loan Guarantee Program would be eliminated. That would pull $26 billion in financial support for 23 renewable energy projects in California and other states, Feinstein said in a letter sent to all Democratic senators Tuesday. “Dozens of companies developing renewable energy projects in reliance on loan guarantee financing would likely lose the entirety of their investment and may be bankrupted if this proposal becomes law,” Feinstein wrote in the letter. “It is both unfair and short-sighted to change the rules at this state in the process.” As its name implies, the loan guarantee program does not provide direct funding, but guarantees loans to companies building renewable energy projects. The program has become a pivotal part of renewable energy development, as the guarantees help companies raise additional funds. Rep. Mary Bono Mack, R-Palm Springs, was unavailable for comment late Tuesday. The Blythe project, a 1,000-megawatt solar thermal plant set to break ground in the coming months, is one of the projects that could be affected if the loan program is shut down. The project, approved last year, could provide about 600 construction jobs for the region and pump more than $700 million into the valley's economy. Solar Millennium, the Oakland- based company developing the project, signed an initial agreement with the DOE in November, but has yet to close the loan. The Republican proposal would cut all loan guarantee funds for projects that have not closed. Southern California Edison has contracted with the company to purchase about half the power from the plant. Solar Millennium and Edison officials were not immediately available for comment late Tuesday. bedeutet das den möglichen S2M-Bankrott ? http://news.google.de/news/...m-budget-fight%3Fodyssey%3Dnav%257Chead
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