Letters of credit (L/Cs) for firms deploying clean energy technologies may be made available if the US Senate approves measures to comprehensively overhaul the country's energy system.

The American Clean Energy Leadership Act of 2009 is now eligible for debate by the full Senate having recently been approved by the Senate Energy and Natural Resources Committee.

New agency

If the act clears the senate, it would lead to the establishment of a Clean Energy Deployment Administration, which would operate under the auspices of the US Department of Energy.

The agency would provide L/Cs, loans, loan guarantees, and other financial aid for deploying clean energy technologies.

Eligibility

Eligible technologies include those of utility in electricity generation and vehicle propulsion, including installing related infrastructure.

Funding would also be available for clean energy solutions for the domestic production of commodities and materials, including steel, chemicals and cement.

Funding

A revolving fund would be created in the US Treasury with funding from various sources to carry out the clean energy technologies programme. Funding would include US$10 billion of unused state funds.

The Senate is expected to debate the proposed act - along with several other proposals related to energy and climate change - in September, although discussions may go into October and beyond.

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