Energy secretary: Solyndra loan ‘was subject to proper, rigorous scrutiny’

Energy Secretary Steven Chu will tell a House subcommittee Thursday that the Energy Department’s $535 million loan guarantee to now-bankrupt solar panel maker Solyndra “was subject to proper, rigorous scrutiny.”

Chu will testify Thursday in front of the House Energy and Commerce subcommittee on Oversight and Investigations on the Solyndra loan guarantee. The much-anticipated hearing marks the culmination of a months-long investigation by House Republicans, who have raised questions about President Obama’s green energy agenda and alleged that the loan guarantee was approved for political reasons. The Obama administration strongly denies those allegations.

{mosads}“While we are disappointed in the outcome of this particular loan, we
support Congress’s mandate to finance the deployment of innovative
technologies, and believe that our portfolio of loans does so
responsibly,” Chu will say, according to prepared remarks the Energy Department released Wednesday afternoon.

More broadly, Chu will aggressively defend the administration’s green agenda, arguing that the United States must continue to invest in renewable energy technology to compete with countries such as China.

“When it comes to the clean energy race, America faces a simple choice:
compete or accept defeat. I believe we can and must compete,” Chu will say, echoing his recent comments on the Energy Department’s loan-guarantee program.

Chu will also point out that many lawmakers, including Republicans on the Energy and Commerce Committee, have written to the Energy Department requesting approval of loan guarantees in their home districts.

“We appreciate the support the loan programs have received from many
members of Congress — including nearly 500 letters to the Department —
who have urged us to accelerate our efforts and to fund worthy projects
in their states,” Chu will say.

Solyndra, a California solar panel manufacturer, filed for bankruptcy in September after laying off 1,100 workers.

Here are Chu’s prepared remarks, released Wednesday by the Energy Department:

“When it comes to the clean energy race, America faces a simple choice: compete or accept defeat.  I believe we can and must compete.

“Investments in clean energy reached a record $243 billion last year. Solar photovoltaic systems alone represent a global market worth more than $80 billion today. In the coming decades, the clean energy sector is expected to grow by hundreds of billions of dollars. We are in a fierce global race to capture this market.

“We appreciate the support the loan programs have received from many members of Congress — including nearly 500 letters to the Department — who have urged us to accelerate our efforts and to fund worthy projects in their states. While we are disappointed in the outcome of this particular loan, we support Congress’s mandate to finance the deployment of innovative technologies, and believe that our portfolio of loans does so responsibly.

“As you know, the Department has consistently cooperated with the Committee’s investigation, providing more than 186,000 pages of documents, appearing at hearings, and briefing or being interviewed by Committee staff eight times. As this extensive record has made clear, the loan guarantee to Solyndra was subject to proper, rigorous scrutiny and healthy debate during every phase of the process.”