3. DOE:
BrightSource emails show politics at work in loan program -- GOP
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House Republicans say they've finally found the smoking gun showing that the recipient of a Department of Energy loan guarantee got direct political help from the highest levels of the Obama administration.
GOP lawmakers are pointing to a series of emails between BrightSource Energy Inc. CEO John Woolard and top DOE officials that were released at an Oversight and Government Reform subcommittee hearing this morning.
DOE finalized a $1.6 billion loan guarantee for BrightSource in April 2011 for a solar project in California that was expected to produce more than 1,000 construction and maintenance jobs.
During months of a Republican probe of a loan to failed solar manufacturer Solyndra, administration officials have argued that all loan decisions were made on the merits by career staff at DOE and that political pressure played no role in the process.
But Republicans pointed today that 15 months before the BrightSource loan was finalized, Woolard emailed Matt Rogers, who was then DOE's top adviser on the administration of stimulus funds, to complain about the challenges involved in getting projects through the loan guarantee program pipeline.
"Things are not good and there is a sizeable group of private equity and investment banks writing a letter to [Energy Secretary Steven] Chu about the status of the program and the inability to get loans through," Woolard wrote.
Woolard added that Peter Darbee, who then headed the utility company Pacific Gas & Electric Co., "talked directly to Obama about the program's challenges and the bad situation it puts him in. DOE credibility is thin and I am currently trying to put off [communication] with the Hill until we talk."
Rogers replied that he appreciated the heads-up and was "working it on this end."
Rep. Jim Jordan (R-Ohio), who chaired the Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending hearing, said the email proved that the White House was very much involved in pushing loans out the door.
"If that's not political influence, I don't know what is," Jordan said.
Woolard said the email wasn't referencing his company's specific loan request but the general concern about the slow pace of what was a deliberate and review-intensive process.
But Republicans weren't done with Woolard's emails.
A month before the BrightSource loan was closed, Woolard sent Jonathan Silver -- who at the time was in charge of the DOE loan program -- an email asking for his help in reviewing an email that then-Brightsource Chairman John Bryson was preparing to then-White House Chief of Staff Bill Daley.
That's the same Bryson who was nominated by President Obama to serve as Commerce secretary in May 2011 and who was confirmed to the post last October.
In the draft email, Bryson laid out his concern that the budget negotiations at the time were putting his company's loan application at risk.
"The White House needs to focus on finalizing the loan guarantee for what would be the largest solar thermal project in the world," Bryson wrote in the draft.
"We need a commitment from the [White House] to quarterback loan closure between [the Office of Management and Budget] and DOE by March 18 to avoid having our project jeopardized by larger budget politics."
In his comments to Silver, Woolard asked Silver for any suggestions on "ways to improve the message."
Woolard said that after he sent the email, BrightSource decided not to send the letter to Daley because Bryson decided that it would not be appropriate. And a BrightSource spokesman said after the hearing the company never got any response from Silver on the request.
Woolard repeatedly stated that he did not believe any of the emails amounted to political influence. "I believe it was all done on the merits; it was a very thorough process that started back in 2006," Woolard said.
Jordan called that assessment "unbelievable."
"Do you think it's customary for a company to say ... 'Proofread this letter; we're going to send to the White House chief of staff'?" Jordan asked. "I think we have to have the White House back in here."
Committee staff sent a timeline of events after the hearing indicating that BrightSource officials had meetings at the White House and in the vice president's office two days after Woolard sent the email to Silver.
Oversight and Government Reform Chairman Darrell Issa (R-Calif.) said he intended to invite Chu back before the committee to clarify the testimony he gave about the program in March.
"It's clear there was direct conversation leading to a form of favoritism for BrightSource," Issa said.
After the hearing, DOE spokesman Dan Leistkow said in an email that the agency's investment through the loan program is showing its worth by creating jobs and expanding the U.S. share of the growing $260 billion global clean energy industry.
"This is a record of success, and thanks to the investments we've made these American industries will continue to grow, along with the jobs they create."