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renewables portion of this “temporary” program favoring renewable electricity should be rapidly deployed, extended, and expanded over time to emerging technologies to ensure that states have the new renewable capacity necessary to meet national RPS quotas. First authorized under EPAct 2005, government guaranteed loans for energy investments were limited to projects that “avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse gases” and that “employ new or significantly improved technologies as compared to technologies in service in the United States at the time the guarantee is issued” where “there is reasonable prospect of repayment of the principal and interest on the obligation by the borrower.”40 In 2008, Congress authorized the first $38.5 billion in loan guarantees, including $20.5 billion for nuclear and advanced nuclear power; $10 billion for renewable systems, energy efficiency and manufacturing and distributed generation transmission and distribution; $6 billion for coal plant retrofits for cleaner burning carbon; and $2 billion for coal gasification. Eligible renewables projects included hydrogen fuel cell, batteries, alternative vehicles, ocean wave/tidal, solar, wind, geothermal, and biomass.41 The Temporary Program now reserves more government loan guarantees solely for renewable thermal or electric energy systems, electric power transmission systems, and leading-edge biofuel demonstration projects.42 Considerable deployment of new renewable generating capacity is impossible without public and private sector interest. Government loans as implementation incentives were cited by interviewed experts in research and industry as most important to implementing viable renewable energy sources (solar, wind, hydroelectric, geothermal, and biomass) and nuclear fission energy resources. The public sector’s role, then, should be one of encouraging more rapid deployment of renewable electricity through encouraging private up-take of risk associated with new market technologies. This can be achieved by either reducing that risk (e.g., public-private partnerships) or increasing incentives to assume risk (e.g., production and investment tax credits). A long-term government loan guarantee program for renewables encourages the deployment of renewable alternatives through the former, and the second recommendation addresses the latter. 4. Continue to support basic and applied research in renewable energy technologies. Research and development fuels technological progress and has been the driving force behind U.S. economic growth for generations. Unfortunately, the U.S. electrical infrastructure is aging, and replacement technologies have not been implemented rapidly enough, leaving the nation with a crumbling electrical infrastructure largely reliant on mature power generation processes that emit billions of tons of greenhouse gases each year. Renewable electric technologies can drive cleaner economic growth in the United States, but for them to have any large impact requires substantial federal research and development support now. This support should help companies improve the efficiency and cost-effectiveness of existing renewable energy systems and fund basic and applied research to discover entirely new renewable energy resources. Without these investments, private industry will be unable to produce a sufficient quantity and diversity of clean renewable electricity to meet the demands of regions and states. 179PDF Image | Shaping Energy Technology Transition
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