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Another incentive driving the increased development of geothermal resources in the US is the Department of Energy (DOE) Loan Guarantee Program. The Energy Policy Act of 2005 (EPAct 2005) authorized loan guarantees through DOE to renewable energy projects that reduce green house gas emissions and employ new or significantly improved technologies. In 2009 ARRA amended the Loan Guarantee Program, adding section 1705 to authorize loan guarantees for renewable energy projects that commence construction no later than September 30, 2011. Since 2009 Nevada Geothermal Power received a $78.8M for its 49.5 MW Blue Mountain “Faulkner 1” power plant, which it brought online in 2009. U.S. Geothermal also received a $98.8M loan guarantee for its Neal Hot Springs project, which is currently under development in Malheur County, Oregon.iv Table 3: DOE Loan Guarantee Section 1705 Geothermal Projects Jobs Supported Permanent Construction Project Blue Mountain Neal Hot Springs Total: Developer Nevada Geothermal U.S. Geothermal State Nevada Oregon 14 200 12 150 26 350 Amount ($) 78,000,000 96,000,000 175,600,000 Source: US Department of Energy, GEA DOE federal stimulus legislation funding (ARRA) is also having an important influence on the US geothermal market. In October 2009, the Department of Energy announced the results of its competitive solicitation under ARRA for geothermal technology projects. DOE announced awards that could result in up to $338M in ARRA funding to geothermal research and development, and would require an additional $280M in recipient cost-share. As of March 2011, GTP ARRA awards totaled nearly $363.7M when accounting for ARRA funding to national labs. Total cost share contributes an additional $302.8M, bringing the combined ARRA/cost share geothermal technology investment to more than $666.4M.v Figure 10: Total DOE ARRA/Cost-Share Geothermal Investment $302.7M $363.7M ARRA Award Total Cost Share Total Total Investment: $666.4M Source: US Department of Energy, GEA Geothermal Energy Association 19PDF Image | Annual U.S. Geothermal Power Production 2011
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