U.S. Sen. Todd Young (R-IN) on Nov. 15 sponsored legislation that would amend the Energy Policy Act of 2005 to ensure cleaner, more efficient coal-fired power plants are eligible for federal loan guarantees.
The Reinvigorating American Energy Infrastructure Act, S. 3653, would expand eligibility for the U.S. Department of Energy’s (DOE) existing loan guarantee program to high-efficiency, low-emission generating coal plants, also known as HELE units, according to a Nov. 19 statement released by Sen. Young’s office.
In the senator’s home state of Indiana, he said “coal producers provide affordable, reliable energy to homes and businesses throughout the Midwest.”
“My bill will help ensure that this vital energy source is competing on a level playing field while also keeping up with advances in technology that can lead to cleaner and more efficient coal-fired power plants,” said Sen. Young earlier this week.
If enacted, S. 3653 would permit the DOE secretary to make loan guarantees for coal-fired electric generating projects having large- and small-scale HELE units, according to the text of the bill, and would streamline permitting for such projects receiving guaranteed federal loans.
Sen. Young said the bill would incentivize energy producers to construct new, cleaner and more efficient coal-fired units by broadening the eligibility for DOE’s loan program.
According to the lawmaker’s statement, the DOE energy loan guarantee program dates back to the 1970s. Section 1703 of the Energy Policy Act of 2005 was added to support clean technologies that haven’t had commercial operation success.
Despite the update, the DOE loan program still hasn’t been heavily utilized “due to impracticality of loan-eligible projects,” according to Sen. Young’s office, which noted that expanded eligibility criteria for the DOE loan program could encourage more coal companies to utilize the program.
S. 3653 has been referred for consideration to the U.S. Senate Energy and Natural Resources Committee.