Skip Navigation

Close and don't show again.

Your browser is out of date.

You may not get the full experience here on National Journal.

Please upgrade your browser to any of the following supported browsers:

Energy Department Revives Loan Program That Gave Money to Solyndra Energy Department Revives Loan Program That Gave Money to Solyndra

NEXT :
This ad will end in seconds
 
Close X

Not a member or subscriber? Learn More »

Forget Your Password?

Don't have an account? Register »

Reveal Navigation
 

 

Energy Department Revives Loan Program That Gave Money to Solyndra

+

Solyndra in Fremont, Calif., Sept. 16, 2011. (AP Photo/Paul Sakuma)(AP Photo/Paul Sakuma)

Energy Department officials announced they're giving a new jolt to the controversial loan guarantee program that became a political football following the 2011 bankruptcy of one of its beneficiaries, the Solyndra solar panel maker.

As one of an array of green initiatives under new Secretary Ernest Moniz, Energy is reviving the program -- launched in 2005 but expired since coming under attack by congressional Republicans -- with a broadened focus to help the oil and gas industries producer cleaner energy. As reported first by The New York Times, Peter Davidson, executive director of Energy's loan department, said, "We have a real problem, and that's 'How do we get new technology to market?' We partner with industry developers and entrepreneurs to demonstrate a new technology at the industrial scale or utility scale," before handing the funding over to private investors, he said.

 

Energy is earmarking $8 billion from $50 billion in appropriated funds it still controls. Officials have emphasized that the losses from the loan program amount to only 3 percent of the loan guarantee portfolio, but lawmakers continue their skepticism, citing the $535 million Solyndra was given and $168 million given to the unsuccessful electric car company Fisker Automotive, whose loan the department auctioned this week.

"The Obama administration has gotten into the business of picking winners and losers at a significant cost to taxpayers," said Sen. John Thune, R-S.D., in a statement calling for an end to Energy's related Advanced Technology Vehicles Manufacturing loan program. "From Fisker and Vehicle Production Group, to the Chinese-owned A123 [green battery manufacturer], this administration should not be making questionable investments with the American people's hard-earned money."

Senate Energy and Natural Resources Committee Republican spokesman Robert Dillon said, "there is not a demand nor a need for this program -- the government has gone out and sought companies." He referred Government Executive to a report released in February by the committee's ranking member, Sen. Lisa Murkowski, R-Alaska, that recommends an end to some of the loan programs and a broadening of another to "allow a wider range of vehicle technologies and projects to qualify."

 
Comments
comments powered by Disqus
 
MORE NATIONAL JOURNAL
 
 
 
 
Make your Election Night headquarters.
See more ▲
 
Hide