The loan guarantee program was authorized in Title XVII of the 2005 Energy Policy Act and formalized in DOE regulations, 10 CFR Part 609, on October 23, 2007.

Originally authorized by Congress through September 30, 2009, revised legislation has extended the project through Fiscal Year 2011 which ends September 30, 2011.

The solicitation provides the process for applying and describes the DOE's evaluation and decisionmaking process for loan guarantees for new nuclear plants. 

Applications are submitted in two steps:

Part I is an initial application designed to allow the DOE to assess the level of interest and preparedness by the applicant for its nuclear project.  Information in the Part I application will allow the DOE to establish a preliminary ranking of applicants for sequential consideration.

Part II is a more detailed application that will represent a substantial amount of work for the sponsor and require considerable details regarding contractor, vendor and financier plans.

Subsequent to receiving the Part II applications, the DOE will begin its process of evaluting the applications, and based on its rankings, revised periodically as new information is provided, will enter into discussions followed by issuance of prospective term sheets and conditional commitments.

The DOE has made clear that it currently intends to issue no loan guarantee to an applicant until the US Nuclear Regulatory Commission has issued the combined Construction Operating License (COL) for the applicants proposed nuclear plant.

Fees are assessed as follows:

I.  Application Fee (Part I 25% and Part II 75%):  $800,000

II. Facility Fee: 1/2 of 1% of Guaranteed Portion of Guaranteed Obligation

III. Maintenance Fee:  $200,000-400,000 per year, will be specified in the Loan Guarantee Agreement.

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