Energy Groups Urge Faster U.S. Aid for Power, Pollution Projects

By STEPHEN POWER

WASHINGTON -- The Obama administration is coming under pressure from energy companies to speed up decisions on more than $100 billion of loan guarantees for projects intended to boost the use of renewable power and reduce pollution.
Nearly four years after Congress passed legislation authorizing the Department of Energy to guarantee loans for projects that "avoid, reduce or sequester air pollutants or greenhouse gas emissions," the agency has so far guaranteed only one loan, to a California-based solar-energy company, on a provisional basis.
The agency also has yet to adopt regulations governing that loan-guarantee program, as well as another program -- called for under economic-stimulus legislation passed by Congress in February -- that is intended to aid renewable-energy projects such as wind and solar power.
In a letter to President Barack Obama dated Tuesday, the heads of seven trade groups representing power companies claim that "disagreements" between the Energy Department and the White House Office of Management and Budget have held up the adoption of the regulations, which in turn have held up decisions on whether to guarantee more than $100 billion of loans to companies that want to build nuclear reactors, wind and solar projects, advanced coal-fired power plants and other ventures.
The groups -- which include the Nuclear Energy Institute, the Solar Energy Industries Association, the American Wind Energy Association and the National Hydropower Association -- said in the letter they have "little confidence" that talks between the agencies "will produce a satisfactory result in a timely manner."
A spokesman for the Office of Management and Budget didn't respond to a request Thursday for comment.
Energy Department spokeswoman Stephanie Mueller said the two agencies are working together to expedite loan guarantees while "continuing to assess whether changes in the proposed regulations are needed to improve the process."
Earlier this week, Energy Secretary Steven Chu told a Senate panel that his department would "within the next couple of weeks to a month" announce the awarding of additional loan guarantees under the program created by Congress in 2005.
Write to Stephen Power at stephen.power@wsj.com