Congress Opens Investigation Into Clean Energy Pledges

Programs administered by the Department of Energy have been offering financial help to renewable energy businesses. The DOE took on a cosigner-like role for many clean energy companies. The total amount of these guarantees results in billions. One congressional committee has started an exploration to see if the funds were used in an appropriate manner. These loans have helped numerous people get the assistance they need without a personal loan. Resource for this article - Congressional commission investigating clean-energy loan promises by MoneyBlogNewz.
Green energy loans
Support has been given to clean-energy projects by the DOE. Loan guarantees are given as this support. Instead of directly giving the projects loans, the DOE has been providing federal guarantees for bad credit loans to these corporations. If a business does not pay back the loan, the government will do it instead. That is what the agreement means. These clean energy loans went to a variety of projects, including solar power in Reno, Nevada, and Solyndra Inc. in California.
Solyndra Inc coping with Congress exploration
The DOE didn't expect what ended up taking place with one of the clean-energy bad credit loan guarantees. About $500 million was promised to Solyndra Inc. by the DOE. This was intended to go to a second plant which would mean 1,000 more jobs. In order to get money to pay back the loan, Solyndra planned on making an initial public providing in a few months. Solyndra changed its plans for expansion after an auditor explained the IPO wouldn't work with the revenue coming in. None of the $500 million loan guarantee has been paid by the government yet as the business has not closed. Fred Upton (R-Mich.) is the House Energy and Commerce Committee Chairman. He opened an exploration to the guarantee that was made.
More of an investigation of money used from stimulus
The House Energy and Commerce committee thinks the exploration will result in being more into clean energy loans in general instead of just into Solyndra Inc. Proponents of green-energy support from the government are pointing out that not every business that gets a loan guarantee can do well, just as every business that gets a traditional loan may not succeed. Many others will suggest the government shouldn't be guaranteeing loans for green energy projects anyway even though the government has not had to pay anything yet.
Citations
Reuters
af.reuters.com/article/energyOilNews/idAFN1717704520110217?pageNumber=2&virtualBrandChannel=0
The Hill
thehill.com/blogs/e2-wire/677-e2-wire/144895-upton-targets-doe-solar-loan-guarantee

By: Brittany Olson

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