WASHINGTON -- A Ligonier plant could soon be building auto emission control components, with support from a sizable loan from the Department of Energy.

Chicago-based Tenneco Inc. has received a $24 million conditional loan commitment from the Department of Energy, federal officials said Tuesday.

The loan is through the Advanced Technology Vehicle Manufacturing program, which is funded by federal stimulus dollars.

The company, which has more than 500 employees in Indiana, received the loan for the design and production of emission control components that will be used in gas, hybrid and diesel-powered engines. The DOE said the new technology will help automakers meet tougher fuel efficiency standards imposed by the federal government.

Tenneco will manufacture several devices, including catalytic converters and particulate filters, that will be installed in more than 2 million vehicles. Some of the parts will be manufactured in Ligonier and used over at least a four-year period, perhaps as soon as model year 2010.

U.S. Sen. Evan Bayh sent a letter to the DOE supporting Tenneco's application in April, which listed the company's request for funds at $33 million.

"Tenneco is an important developer and manufacturer of emissions control equipment," Bayh wrote, also noting the company has a "legacy of innovation."

Local start-up company Electric Motors Corp. also applied for a $72 million loan through the ATVM program, but is still awaiting a decision.

EMC has applied for more than $375 million in federal grants and loans. Company officials have said their venture is not reliant on the funds, but will get moving quicker if the money is approved.

Linda Yoder, EMC's vice president of government affairs, said she has not received an update on the process from the DOE for several weeks. A verdict is expected soon, Yoder said, and EMC is thrilled a local company received loan money.

"A lot of the folks that are in line to get these grants and awards are potential partners for us," she said. "It's something that definitely strengthens our area, anyway you look at it."