WASHINGTON – Following a last minute meeting with former Representative Jim Nussle in his Senate office today, U.S. Senator Pete Domenici, ranking member of the Senate Energy and Natural Resources Committee, voted to confirm the OMB nominee at a Senate Budget Committee meeting today.

 

         During his conversation with Nussle, Domenici received a commitment from the Office of Management and Budget to fulfill the vision of Congress with regard to the Department of Energy loan guarantee program. 

 

           “Though I have always been impressed with Mr. Nussle’s qualifications and intellect, I was fully prepared to block his nomination because the Administration has failed to follow congressional intent to develop a robust, useful loan guarantee program at the Department of Energy.  I’m pleased to report today that Mr. Nussle has agreed to address my specific concerns with DOE’s proposed rules.  The changes that OMB has agreed to should vastly improve the program and help develop innovative energy technologies that will help lead us to a secure energy future,” Domenici said.

 

            “I was also very pleased to hear from Mr. Nussle that he enthusiastically supports loan guarantees and plans to be a shepherd for such programs while at OMB.  I believe that he does understand the role that the federal government can play to help develop clean energy technology, and I look forward to working with him once he is confirmed,” he continued.

 

       Domenici’s specific concerns centered around DOE’s draft regulations on loan guarantees, which arbitrarily limit any guarantee, regardless of project cost, to 90 percent of the face amount of the loan.  Such a limit is not required by law and Domenici and many analysts believe it would render the program useless.   The Senator also opposes the arbitrary $9 billion cap placed on loan guarantees for FY2008, which also stifles the vision set forward in EPACT 2005.

 

          During the Thursday meeting with Domenici, Nussle and OMB officials agreed to provide discretion to DOE to issue guarantees for 80 percent of a project’s cost, even if it means guaranteeing 100 percent of a loan.  In addition, OMB will also support, in addition to the loan volume requested in the FY2008 budget, a separate no-year loan volume amount for nuclear facilities.

 

          Nussle’s nomination was approved by the Budget Committee on a 22-1 vote.  He now awaits consideration by the full U.S. Senate.

 

 

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