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House will close one loan-program probe today as another rolls on
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As one House investigation into the Department of Energy loan program comes to a close today, another appears to have no end in sight.
The House will vote this morning on the "No More Solyndras Act," which, depending on what side of the issue you fall on, is either the crowning achievement or the failure of an 18-month-long House Energy and Commerce Committee investigation into the bankrupt California solar energy company.
Meanwhile, Republicans on the House Oversight and Government Reform Committee indicated yesterday that their investigation into DOE's Loan Program Office -- which has so far committed nearly $35 billion in loans to Solyndra and more than 30 other companies -- will continue beyond Election Day.
Oversight and Government Reform Chairman Darrell Issa (R-Calif.) indicated earlier this week that he wanted to bring Energy Secretary Steven Chu back before his committee next week to clear up "previous inaccurate statements" that the secretary made when he appeared before the panel in March. But an Issa spokesman said yesterday that Chu's appearance was being rescheduled due to "a lack of cooperation" on the part of DOE.
Spokesman Frederick Hill said Issa still intends to bring Chu before the committee "at the appropriate time" but that the earliest that could happen would not be until after Congress returns to Washington, D.C., after the election.
Hill said the Chu hearing was postponed due to the committee's inability to interview key loan program employees whom Republicans want to hear from before Chu's appearance. In particular, Republicans want a chance to depose Morgan Wright, the director of strategic initiatives in the Loan Programs Office.
Issa has called Wright a "key figure in the Solyndra scandal" and originally tried to bring him in for a deposition Wednesday. But Wright did not appear for the interview, citing his inability to retain counsel after receiving his subpoena last Thursday (E&ENews PM, Sept. 12).
Democrats were especially critical of Issa's management of his Solyndra probe this week, blasting the chairman for everything from trying to intimidate DOE staffers to breaking committee rules by not conferring with Democrats before issuing his subpoenas.
Rep. Gerry Connolly (D-Va.) said yesterday that Issa has strayed so far from due process with his investigation that he believes DOE should cease cooperating with the probe until the chairman stops breaking committee rules.
"Given the fact that the chairman has already pre-judged this case and shown no objectivity whatsoever, I would strongly counsel the secretary and his staff to respectfully decline subpoenas and requested depositions that were never cleared by the minority and were in violation of the committee process," Connolly said. "I don't think there is any obligation by anyone in the administration to comply with a subpoena that is very flawed."
Stearns' 'historic legacy'
The No More Solyndras Act represents a last hurrah for Rep. Cliff Stearns (R-Fla.), who as head of the Oversight and Investigations subcommittee ran the investigation and crafted the measure meant to wind down the controversial loan program. After losing in a GOP primary to a little-known tea party candidate, Stearns won't be returning to Capitol Hill next year.
Yesterday, Rep. Tim Murphy (R-Pa.), a fellow member of the Energy and Commerce Committee, praised Stearns for his investigation and for exposing Solyndra's failure and the $535 million loss it meant for taxpayers.
"He's been a real leader in fighting a lot of misuse of taxpayer funds, and this is one of those signature bills," Murphy said.
Said Stearns, "This inquiry will have a historic legacy, not just for me, but for the House of Representatives as well. It was conducted fairly, methodically and assiduously -- and yielded the No More Solyndras Act that I helped to write. ... Few members of Congress find themselves in the kind of leadership role with which I was entrusted, and I'm very proud of this team effort."
But while it is likely to pass the Republican-controlled House today, the Solyndra bill is doomed in the Democratic-controlled Senate. And Rep. Diana DeGette (D-Colo.) -- who serves as ranking member on the Investigations Subcommittee and sat beside Stearns for all of his hearings -- said that if the No More Solyndras Act is Stearns' legacy, it is a weak one.
"I'm hoping my legacy in Congress won't be passing a bill that's frankly a political bill in the House and then having it stall in the Senate," DeGette said. "I don't see how that could be a lasting legacy."
Help for nuclear industry
Meanwhile, Democrats and environmental and anti-nuclear groups are taking aim at the House bill for cutting away new loans for emerging renewable energy projects while propping up the nuclear industry.
They note that a provision in the bill allows the government to continue to grant loans for projects for which applications were submitted by Dec. 31, 2011, and point out that the nuclear industry would benefit most from that loophole.
Rep. Ed Markey (D-Mass.), an outspoken critic of the nuclear industry, noted that a $2 billion federal loan guarantee for a controversial uranium enrichment plant in Ohio could move forward under the bill.
The U.S. Enrichment Corp. (USEC) is applying for the federal funds to commercialize new centrifuge technology in Piketon, Ohio, but Markey has repeatedly said the project is risky and plagued with problems. Markey tried without success to include language in the bill to block funding for the project (Greenwire, May 18).
Markey noted that USEC reported a net loss of $540 million for 2011, larger than what was lost by Solyndra.
Yesterday, several groups, including Public Citizen, the Union of Concerned Scientists and the League of Conservation Voters, also criticized the bill's allowance of a loan guarantee for USEC, saying in a letter that the company has been "beset by long-standing technical failures, a history of bad management decisions, and a lack of access to capital, would also still be eligible."
Markey said that if the bill had to pass, he would prefer eliminating the entire loan guarantee program without any loopholes.
"It would put the fear of Adam Smith in the heart of the nuclear industry," Markey said.
Rep. Pete Sessions (R-Texas) accused Democrats of attacking nuclear through a "narrow environmental policy," despite the fact that the fuel source is clean and emissions-free.