BRIi'IqNC M',:' T ll; W: 1] l.loi]35 *{.lirgto:! ,atrrr lr,2r:t MSMOIIAIiDUMFORTI]E PRES])}JN]' lltfi{: aLR0LBt{OitNliR It{rN KLAi}i LARRYSI}MMI:II' !L]:lJl3: l.':re!a!1. 1;.3:r: L... rr,r.?nt 3 t {l: ai::ir1s Yoursdvisors sL(kyouldiftctioltor)implc?c.11$g rhetncrgyloanguaranted pfir${rm. TbaeeuesFtermrisks characterizethis prcgram:rcscissionof nor-olrig&ttx! ata; tttair$ ta:, till sryrorle s aud ra.k holdersfgr slov il1rllg:1:algaioaii.., ,ltali.lt'g.,:n*:tmrnls to * *lx:&r y'rlr cl.an ?nergy trrj.rt *r: ii}'ld lrav. rn r,:a, n f'.: *n, t!:,,:: ,!!niln. l, ran$i&rng t r3;. r;ttN, {r:r ratxa,&al. ralrartt ,rplrfl; & p$cesslhst would ':l limit OMB andTfca$rfy rvie$. Oi/:B &rd:r.,3.it? 3r?rr* ile esiahlishmert ofcierr policy frieiples tor proje.l &ri.v, ri.o$.rrg tlrt t ! rr:. t.se o lisk that somepmgfatr &nds moyrrotbeobligatedby lhepiogxn:r'r3!pLmber10,2tl I sunsctdate.livr sl$) il:*ir;;r,ryor rlo*li corrsid.rwofkittg witb Corgfcss:o rcprog!$:t lorll gu.ra,ta.l:ttdr ,.r..r ga.nl t]!g,ar: a*iry ,x Inmedrrrl 1't gr:lrrrra !aaai!,iri! at al* X.aovrr, x,ir\rtl. derat. A, crrrnded fnr, ^c1'3 irc r{r,.rg 'r{3a{y .]l1 rill p,'{iir *t oppo!tu,!i} 1! dis$as theoplionsdescrib€d below*ll,r youLiirafrlr. DlSCIJSS]oI' ,t.rai:,1,raa 'l 9 Racoyery power: Act crcalednro nc\\,p;59{r$r lr lra:ltcta,atlrysent olrenervablc ,r l:rrJ.nsryy loanglunnlcc progf,]nandrh. 603 grantilt liouoflax credillrogriur. tttt ti.t{r rt.n: {;rlounteel't og&M 1'1Ll1,ec.vir}Act aplropriatedabont56 billionto arar:a,:]l.gorcnroenlto pny lof rberreilil subsidics sssociateii with loanguaraoleel fof t::rr:ra,. r.rtt l&rd r.laled)projects.Thecreditsubsidycanbc thoughlofis llle 1ir '..a ,,ra] ttra rarl be paid l)r the inslm;rcelhr govll]ratrantprolidcl ir g1lor:,lllecing bar irr a ;*jer:. l.,llis 1)rngrrllr1!n i*aarai, , drxaa ar,,.aa, t ral tigltenllg cfcdit pfojecls-it rep&rarl,,,naitr.,a,.:, ,ta& rxisting1703ioan {drkcls fc,rrcnelvable gu&nnleeprogrant, \!hich supporlsintn!a,'a::a lcal:irrar:aaraa rrrers renewables. lnrclcaf, i d advqrcedlbssil. To daic,llre l 70llt {,gr".rnin, ,:r'a.ale'aald,pproprialiors Iof credir subsldies,lhtls requiringlxoject develope,sto paylht governne[t for tbe cr€ail srbs_idyand the$by t!*:liDg ltre llteresai! ::i. t ?03 progJa$amo'lgsrnsll fcneeablsdevelopex,' tt03 Crtnt h'ogt.rni Renervall* dcvelotx may of: ,..nveit lhe sdsting renewabie invcshlelt tax credit,eqarollo 30 percellto,n plojcol:J i:tr"aslmelrtcost,inlo a gra . Seforc the finaaai&icrisis,r$tawsbL daveiopersoften parlneredwilh larggar!.raials $aa aad rizabL *!ble i!.srr. and!rr1, wc tax triits, i..,,,,tride "a.j. .xr.tily." ?tit t:r)rtam ,r,rcss6 ar*cer8 abort lhe cl'n!.ijy of*t a.{ equit :,r*el lor rer.*.bles lito$::2010. Dorbling Rerevsble Part Cral: Bsted on th€seRecoveryAct progrom3,a::e Adft]'lgrltiorr $9aa gesl ,o arn lo fsirrtblc po\lrJ gerclatioll r*itlti! threayt*, h 2009, tL win: :ldustry enjoyediat rtst ycsr et!: with trt l: 10,000rxgaeatts of n3lt installed oa:hiscAplcit} capacity.Lawl?[ceBelkleyNalionll L{b estimaiedrrl ncarlyono-quartef would rl lravebet,: brilt il]rtrt tt'sen.e of lhe 1603Bent prcgrnn. The ! 7lJ Itat gr$ari.{ r.,!grsm did not c1q!. aly dealstn rcuerllblg ScneraLo.ia 2009, &orn@y d t705toan cr.t@1leeProgtaMMA 1603cra t Ptoqront(ltuottgh(ktobet 25) i705,.rn cnantr .8 i603Ctu{ ,0t:t lrE 3lrff tOE slllfn D.tell)ri..r;r of R.caara I)pjoa!krgli\ of reviorv Pt :tam aa,::etdsle ':a1.1uirlf of proi..fs for I 705) {glosed/conditiolrl Nu$b6raf Nird !.*.f projaalr N]r'r,.r olat . poive.taojecls po\r'erproj€cls Numlrirof gcoihernrnl N!&berrirlol nsstr'l]l;r prqiat,i llrrb€r cla.?r teca&lrLt/prrj.t:r ol sttesvirb slppod€d Xnrnber p.ojecrs lrr: lj8pt.,, irxl$l'*,iMW) invr5lrenlsupporied 1'.)111 t,.: a, l'(i*,::pnsr'r la illttr* .oot"clors , lr",'att FTE3atl, l5 DOS FTES Discntionary, Fflectingd€sl alir.1lctlris::a: .rd Sts lil.,iaad, subjgctto regorin.ons rvit r r,rD'or Enterirg into 5cfticc Sepictir 3r10,201 lr....rbef I t,:l}1, l,8sl a/! t/t tt2 lt: 0/0 4,4 -*, , -l,600 ,i., bi,lio!tr:* Lr;llnx .ligiblr arr.t'losr 2a:) :1.5?l 23 ?t 29 48p[$ DCand:R -r,60ll ..$13.2 b:llior) 8et.rrt,r p l}.taa,lrd€r li* :lr5 pfo!:r.tr :rnYeinti.r:atl thal oi.e ilteyrdir :lro rrr.ce irltenda{ahirn 1603gi1l nl I r'llc 1703 p [ogr"n iras nr]3de condrtionalconirilitmentsfor lL: leutlren Compa']ys vog!]errclcar cc..ra nd .trn:vrl n ti:t i, noakllnfch n)cn!Iracliityirr ldaha. :r roiv.r f:nrr in Ltt,tttt.t{l Bene,lttt./ t705att tatt to RetettratgtDevelopax;1le combit'n t&tf tfli'ind ft!:r ,t .bout 55', tt l,.lar lelhnolttt" b, 1603ar:, I ?05 ioweis tlre .ost of 6 ' €1' t{blc I ). Renc*{bles' inlcrmIltcn{rJ .asg {seeaPpendix rbouthalftelstiveto a to'subsidy couid be remediedby iustsli rg which troblen litti& tlre deplo:tlrnt of tl e!. teclurologies' iack-up caq*ciry(likity incrcasesthu .'oetby 2 to 4ln(Wh). PastexpeaencsNilh therliind ux crer!t suggeststhat the 1603gmd end lhe a'3ttiala'altrx cr.di* at a havca ig,,atttt l}e },..tT qw impectob newwindcapacity.Appcodl\fignre: tiolt (in,led.{, aaSions) il;eshcrt duringlhe *ueeIinrcsfie wind taxcrcdirorpiredsilce 1999' LoanCxatanl.. llpeline tmd lrocess:Aftetrcceivingal: spplicalion,DOEconducls exieirix duedilig&ce worl or:tlt aecluo:arLr, Iinoneiol,r::edi1,legal' 'o'!'!tlt'al, enviroamertal,eol operationalasieclsofete! }!oj!ct. Tti3, 13 diligence!!n f i'! months to courgldr andofter lxrlls in sigt iacant chtJlgesIt lhe original htnsactionstn:otlre to .lliaiao; :ai$li.ied d.lt an.ddili.. a.,negotiaii.g lvilh the proi.ct $pousots,DOI slso $/ilh oMB rl Trcltlrr, il radicr.lta,aaf the de' r"'g€ has arclces in a b1rck-and-fonh dalr ue'elsuboittedfor review OMD revicvofDOE ptojaa$basaverr8ql23calendar con)mim$" 3 conditlonal I clo3ilg and for the dayr 2009,end lT busitress sinceSettember DOE lar ai$mitled l i:reen Al3t$ t andOctobetl5 oftlb yesr. DOE mlee that the lac.l or:di;rli: ronsun:era 3:goillie.tatLount o: r13fftim€' tl*.?by $aking il clstletgilxg to rsvr ec1'ela:t&sactio* lcnvard :i::rultaneowly' l9licy rsYig\' Tieasilry ''{ t't W}ite revie' l?'' l' thc Lloosebasosiasionallyexlendedtho atiolnt of tirrg , ,roj€ot it n'L' " qttdncled oh intri:ageocy DO! Lasi lr.ek, $bsidy. .redil to sto!3 s tiine tskcnbt OMB (acl] thacotdilioM: could most of t[ese pnicr"ls, lhat wilh lhc expcchlion rrcviov 0f live DOII !)Btern a_8 cur rent revre' urder the \!eel: commi(m(ntstt€cwilhin llle lrrxl of llew rficant nunrb€r 8 tp snacxpects bos35;roiecfsirldncdiliSence, crrrenliy project clo$)ill the I9{ .,!w JTeeks Sit''o loangtM$n"g solicitatiolls whe; hvo lDDlicalions co$rnilDelts1 ill ne€dio occrn'inlh€ fundqcanonly beobligat.ddl closin&conditional 5r, r1l$rlef.t:tl I b a.r!t 10cl$:tt, Seple::1lei30, 20t l, L€giilrlive Irrlplicqtions 15e Adrl.,.isxaii.t'r.rpronar a. *e relieltlble loln g,er..tce p o&!&mcnd grlnlt Ys. imdicatronsfur iogisiaiiveacrivrtl,rncludin;i* fY20: t .:lr&t islio':t {:lu:ie marl } 10' Senarc rrar{ is $380 millionlor ener5,Loang!&t n!. crtdil ..l,ti1]ies)itlrr t!' lxlendcr l}:t: jr whrchsomeMemlers 'a.]ld iikelo extendthel6!: grsnl;sld the FY20l2 l' dgei' Ri$l.r aL.r8cftrrrg lla :rt, Cnn*.l.* f t'arf..n 'lie l?15 loangr.ra.tee $ogram hasbe9! scalcdbackto about$2 5 biltiot Re,rcis"rrbr.&i,t*r al'ier,.lo&&m*!lu ior a*lh-loF airokels (May 2009)and lrt staletid Xtkege (Ang!i{ *l*ees to;ly 201!).i he;ehb b.;r recsrtinterest'rr nssindinrrlobligaleCaattlety,, in dlt ::l): :ti ir:rr rtlts nl'oirl 2.tX $1,, obligalcd trogrstl ibr oihcrplogmms.DOE has snd comtilmenls, conaitional l?0J projecls h,rve rcc€itld 9 oolropriaiiois,An addiaialial ' t]]llioll 8bo(t 5900 be $500 rjol':ioses tlr*r ieals,,r:ll)ttl obrt tions\v.!td Ct t tt:tfunul Rlsk:Failingto makegrogrtx ol rencwablesioan gwnntees codd $3ef l" arrddrawcriticism Pelosi,aswttl r* tlncw.blesstakeholders. Hi,lison Binfrnau, Sp€aker past loanguaratloes' oftfio ltli:e lirr$!, \4hichhasbetn silgler.d 13, txdblcck ort l;cor?rr'c XiJk OMB sndTrc8strty,wirich havestslrrt&l obligaliolls 10teview 1705 loan questiotts, i!)rlndi,g:"doubledipping"- thetotsl suarante*,havemisedil)]plcrncDtation hsveexceeded60%; "skjl itt thc guamntee recipieats, which ;overu&.nl subsidyfor loan put intoplojeclqand (a.! lov as l07o) developers !o-u:e" therelatiw)yrnrullprivnteequity projsL $arld altata::ltly a-$ove io:r.bcremental inverr:*:l - l::ar loanguarant* f.r.r,i* 1'i&o1 l the credt 3.,!,'i,a.rlirxd by 1705(inctndi4 thosep:r:Jt" *n"'!'t exis: rii:a ,., \.ridt 1lr, loaDgullt *3 3itq{, :t,lvides a meansfuf r€lit1nein!)' :ti' ::x appendill9t .. tllr.slrationof *€6, iJtttt l iil :lie Sh.p[eftls Fht ptoje!'' D!!orA/ :,s{n Cualanfec Pt'ograe otfons Option): Limit OMB.dd TreasurvOvcrsiqhtRoic ,"""" p*st, .ner working with projectspodsorsfor 6 lo 18 monlbs,-DOE ilih*.*r".t submileDmicclsfo! revicw of lhc clldil subsidyfor {onditional co6n]i1lltitl3 ad tglaey ,tview uv