Wednesday, October 2, 2013

Energy Department's Loan Program Revival

The Energy Department’s loan program has been used in the past to fund the development of green energy technologies. The Obama administration has recently decided to renew this program. This program does not have to go through Congressional approval, though it is thought by many to be controversial because the program has failed in the past. Under this loan program “Hundreds of millions” of taxpayer dollars have been lost due to the failure of start-up companies such as Solyndra, but many others have been successful. Under the loan program the Tesla Motor company has already made an “early repayment of $465 million.” Despite the controversies associated with the loan program, officials from the Energy Department describe that this program can help bring new green technologies into the market that previously would not have been able to enter. The loan program takes risks using taxpayer money to invest in start-up companies, but it can result in the development of new green technologies that decrease the negative impact we have on the environment.
I think that reviving the Energy Department’s loan program is a smart choice. I think it is a good idea to promote the development of clean energy technologies. As the article stated, many new technologies may be available but are not being comercially developed due to lack of initial investors. This program gives companies a chance to make something new and potentially beneficial. I think this is a step in the right direction because there is currently very little being done to change our energy consumption habits. I also think this loan program is a smart decision based on the Obama administration’s recent carbon pollution stance. Since the pending standards will not allow new coal companies to open unless they are using cleaner methods, this loan program can help fund cleaner coal technology that could help the coal companies survive. The program has been very successful in the past despite some setbacks. I think they will be able to learn from the mistakes of failed companies such as Solyndra and be able to make smart investment choices in the future. Changes need to be made now to prevent further disruption of the environment and I think that funding start-up companies and giving them the chance to create new technologies is one of the only realistic options we have right now.
--Marielle Langston

No comments:

Post a Comment