By Ben Geman
Four taxpayer and conservative groups say a House GOP bill to curtail the Energy Department’s loan guarantee program doesn’t go far enough.
The House is slated to vote Friday on the “No More Solyndras” bill, which bars loans for green energy projects for applications submitted after 2011 and sets new parameters for review of existing projects.
But Taxpayers for Common Sense, the Heritage Foundation, the National Taxpayers Union and the Competitive Enterprise Institute issued statements ahead of the vote Wednesday critical of the bill.
They’re upset that the bill — named after the Energy Department-backed solar company that collapsed last year — would still allow billions of dollars worth of new loans to proceed for projects already under review.
“Despite some merits, ‘The No More Solyndras Act’ has a glaring loophole that should have it redubbed the ‘Even More Solyndras Act,’” said Ryan Alexander, president of Taxpayers for Common Sense.
“Lawmakers need to stop the program from putting taxpayers on the hook for billions in loan guarantees instead of passing bait-and-switch legislation,” Alexander said.
And Andrew Moylan, vice president of the National Taxpayers Union said, “The House should amend the bill to strengthen provisions dealing with loan guarantee applications already in the pipeline to ensure that these 'zombie' projects don't draw any more blood from taxpayers.”
The bill would also bar “subordination” of taxpayers’ interest to private investors.
The early 2011 restructuring of Solyndra’s loan put private investors, who were providing more capital to the struggling company, ahead of the government for repayment if the company collapsed.
The Energy Department opposes the bill, arguing “subordination” should be available as a last-ditch, rarely used tool to help distressed companies.
Advocates of the embattled green energy loan program say the bankruptcies of a small percentage of loan recipients should not obscure the wider successes of the loan program in boosting wind and solar power generation.
Taxpayer, conservative groups: GOP’s ‘No More Solyndras’ bill not enough (The Hill)
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