·        Prolonged negotiations: Just yesterday we reported that Beacon Power had finalized a $43 million conditional loan guarantee with DOE for a flywheel energy storage plant it is building in New York. But the original announcement by DOE that Beacon was getting the loan was made in July 2009 – meaning it took more than a year to get the deal done. As Friedman’s report notes, there are a number of projects that have been in the pipeline for 90 days or longer. Given that, it does seem a stretch to think a selection made now could get through all the hoops by Sept. 30.

·        Regulatory hurdles:  Baltimore Gas & Electric was one of the big stimulus winners with a $200 million award, but BG&E’s Smart Grid initiative was rejected by the Maryland Public Service Commission in June. The utility was back in front of the commission with an amended plan just last week, but no word yet on the outcome as this is written. Should Maryland regulators say no again, it leaves little time for DOE to go back to square one – and could mean we lose $200 million for Smart Grid development. And PUCs aren’t the only challenges energy projects face – there are a slew of potential roadblocks, from environmental regulations to financial audits.

·        Technologic and economic complexities: We’re not exactly sure what these are – and DOE isn’t explaining due to “sensitive procurement issues” – but apparently a previously planned use of stimulus money has changed due these complexities and thus delayed obligation of $1.8 billion.