Sep 7, 2012 No Comments ›› Pat Dollard
Excerpted from The Hill: House Republicans will pass a bill next week that suspends new loans for clean-energy companies under the Department of Energy program that loaned nearly $530 million Solyndra, the failed solar panel producer that Republicans have targeted as an example of government waste.
Under the “No More Solyndras Act,” H.R. 6213, any similar applications for government loans made in 2012 could not be accepted, and any applications submitted before 2012 could only be approved after a Treasury Department review of the proposed financial terms of the loan.
In addition, any loans approved would have to be reported in full detail within 60 days. Any violation of the bill would subject related officials to penalties, including a fine of at least $10,000 and up to $50,000.
The bill finds that the Obama administration pursued a “green jobs” agenda with the use of $90 billion in program funding in the 2009 stimulus bill, in addition to $47 billion in loan guarantees from various appropriations bills that can be used under the Energy Policy Act of 2005.
The stimulus bill also created a new loan program for commercial technology, and Solyndra was one of several companies that benefited from this new program. Solyndra and two other recipients of the same program have since declared bankruptcy.
“The bankruptcy of the first section 1705 loan guarantee recipient, Solyndra, Inc., could result in a loss to taxpayers of over $530,000,000,” the bill says. The bill also says an investigation shows that Solyndra’s application was “driven by politics and ideology and divorced from economic reality.”