House Approves Stearns "No More Solyndras Act" Protecting Taxpayers from Further Abuses

Press Release

"My 18-month investigation of Solyndra and the Department of Energy's (DOE's) loan guarantee program has led to H.R. 6213, the No More Solyndras Act," stated Rep. Cliff Stearns (R-FL), Chairman of the House Energy and Commerce Committee's Subcommittee on Oversight and Investigations. "It is important to note that delays and unresponsiveness by the White House, including ignoring a subpoena for eight months, drew the process out. Yet, we have this measure that protects taxpayers from being stuck with paying hundreds of millions of dollars because of President Obama's, or any future Administration's, risky schemes."

Added Stearns, "We uncovered a poorly managed program that was influenced deeply by political considerations. It is difficult to understand how the Obama Administration proceeded with the Solyndra loan given that one official at the Office of Management and Budget (OMB) wrote in an email March of 2009 that the Solyndra "deal is NOT ready for prime time.' In another instance, a DOE employee estimated that Solyndra would be out of cash in September 2011 -- the exact month that the company filed for bankruptcy and then was raided by the FBI."

The House today approved H.R. 6213, the No More Solyndras Act, developed by Stearns and Energy and Commerce Committee Chairman Rep. Fred Upton (R-MI). The measure will effectively phase out DOE's flawed loan guarantee program under Title XVII of the Energy Policy Act of 2005 by prohibiting DOE from issuing any loan guarantees under Title XVII for applications submitted after December 31, 2011. Explained Stearns, "This legislation also will prevent the subordination of taxpayers to private financing. Although the Energy Policy Act of 2005 prohibits this subordination of the taxpayer, the Obama White House relied on a questionable interpretation of the law to subordinate the loan to two private hedge funds."

H.R. 6213 also providesthat no guarantee shall be made until the Secretary of Treasury has provided DOE a written analysis of the financial terms and conditions of the proposed loan guarantee. In addition, it states that if DOE makes a guarantee that is not consistent with the written analysis provided by Treasury, DOE must provide a written report to Congress explaining any material inconsistencies. Furthermore, the bill requires the Government Accountability Office to complete a study of the federal subsidies in energy markets from FY 2003 through FY 2012.

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