Lawmakers probe how solar company got a $528M loan

Associated Press

WASHINGTON

House Republicans questioned Wednesday whether the White House rushed approval of a half-billion-dollar loan guarantee for a now-bankrupt solar panel manufacturer once cited as the kind of renewable energy company worthy of federal stimulus money.

Solyndra Inc. was a major presence in Washington and spent millions of dollars on lobbying there, particularly about the Energy Department’s loan-guarantee program. And its executives raised thousands of dollars for Obama and Democrats in Congress.

The collapse of the Fremont, Calif.-based company once touted by President Barack Obama ultimately left taxpayers on the hook for $528 million, raising questions if the loan was rushed to accommodate a company event in September 2009 that featured Vice President Joe Biden.

The congressional panel examining the loan disclosed emails that appeared to show senior staff at the Office of Management and Budget chafing about having to conduct “rushed approvals” of federal-loan guarantees designed to help jump-start the nation’s renewable- energy industry.

“We would prefer to have sufficient time to do our due diligence reviews and have the approval set the date for the announcement rather than the other way around,” said one of the emails from an OMB aide to Biden’s office.

Obama cited Solyndra as an example of how the economic-stimulus bill would create jobs. But the company has since filed for bankruptcy and shed 1,100 workers, saying it couldn’t compete with foreign manufacturers of solar panels.

Documents reviewed by The Associated Press show Solyndra spent nearly $2 million lobbying the federal government in the last four years, including on provisions of the Energy Department’s loan program just months before White House officials urged that the funds be approved.

The Solyndra fallout comes at an embarrassing time for the White House, while Obama is promoting his jobs plan, which includes more investments in renewable energy.