Friday, September 16, 2011

US Government Races to Close Billions in Renewable Energy Loan Guarantees

“Taxpayers have over $500 million at risk as a result of Solyndra’s bankruptcy,” House Energy and Commerce ranking member Henry Waxman, D-Calif., said on Wednesday. “We need to understand what happened and how we can avoid future losses.”

The Obama administration is in a race against the clock to close by month’s end more than a dozen renewable-energy loan guarantees totaling $9 billion. Of that, just over $3 billion would come from the federal government’s coffers.

It now has to do that amid an escalating political battle over a federally backed solar company spiraling into bankruptcy and facing an FBI probe. President Obama once praised the company, California-based Solyndra, as “the true engine of economic growth.”

At a House hearing Wednesday, there was bipartisan concern about risking more taxpayers’ dollars on renewable energy projects that ultimately fail. While Republicans’ rhetoric was more heated, Democrats agree it is a critical issue. more