The Geothermal Loan Guarantee Program: Need for Improvements

The purpose of the geothermal loan guarantee program is to encourage and assist commercial development of useful energy from geothermal resources. The program is also intended to develop normal borrower-lender relationships which will in time encourage the flow of credit to assist geothermal development without the need for Federal assistance. The program is managed by the Department of Energy's (DOE) Assistant Secretary for Resource Applications. The Manager of the DOE San Fransisco Operations Office has been delegated national operational authority for the program since most of the geothermal resources expected to be developed by 1985 are in the western half of the United States. Under this delegation, the Manager: accepts, evaluates, and recommends approval of project applications based on priorities DOE has developed for the selection of projects; monitors project status; and coordinates activity in default situations. Final project approval authority rests with the Assistant Secretary for Resource Applicatitions.