Washington, D.C. – The U.S. Department of Energy (DOE) has issued an Interim Final Rule that implements the federal loans available to automakers. The rule implements the Advanced Technology Vehicles Manufacturing Incentive Program, which provides the DOE with funding to make up to US$25 billion in direct loans to eligible applicants for the cost of re-equipping, expanding and establishing manufacturing facilities in the U.S. to produce advanced technology vehicles and components.

In order to qualify, these vehicles must provide meaningful improvements in fuel economy performance. Congress originally required the DOE to issue its regulations by November 29; the DOE as completed and issued its regulations in approximately half that time.

“Issuance of this interim final rule opens the process for automakers and component manufacturers to immediately apply for government funding under the Advanced Technology Vehicles Manufacturing Incentive Program,” said Samuel Bodman, Secretary of Energy. “Since Congress provided funding for this loan program approximately 30 days ago, the Department has worked quickly and responsibly to draft this rule, set up a loan office, and establish a credit review board to review loan applications.”

Congress has appropriated US$7.5 billion to cover the subsidy costs of direct loans issued to automobile manufacturers and component suppliers. The actual amount of loans that the DOE will be able to issue, up to the statutory ceiling of US$25 billion in loans, will depend on each borrower’s circumstances and proposed projects.