The US Energy Department has proposed regulations that would lead to government backed guarantees for commercial loans for renewable energy projects. The loan guarantees would cover financing for biofuel, particularly ethanol distilleries, nuclear plants, carbon dioxide capture, and other clean energy projects, according to this report from PlanetArk.

This strong message from the US government is intended to bring in new investments in these renewable energy areas, and according to Energy Secretary Sam Bodman, this action "...demonstrates our desire to foster implementation and commercialization of new, environmentally friendly technologies that will reduce emissions and strengthen our energy and economic security..."

Unfortunately, the guidelines for the guarantees are not for full disclosure yet. The Energy Department believes it will be able to come up with a working platform for this program by 2008.