Anaya Nolan
In 2009, the Fremont, California-based company Solyndra received a $528 million loan from the federal government. The company was the first renewable-energy company to receive a loan guarantee under a stimulus-law program to encourage green energy. However, Solyndra closed its doors in August 2011 and let all of its workers go. This led to questions about whether the Energy Department broke the law when it agreed to restructure Solyndra's debt.
| Characteristics | Values |
|---|---|
| Loan restructuring | May violate federal law |
| Treasury Department concerns | The deal could put investors' interests ahead of taxpayers |
| Energy Department's culpability | A House panel aims to determine whether the Energy Department broke the law |
| Justice Department review | Mary Miller, an assistant treasury secretary, said the deal should be reviewed by the Justice Department before it was approved |
| Energy Department spokesman | Damien LaVera said the loan restructuring was legal |
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What You'll Learn
Loan restructuring
The Obama administration decided to restructure the loan to Solyndra, which meant changing the terms of the loan to make it easier for the company to repay. This decision was controversial, as there were concerns that it could violate federal law. The Treasury Department, in particular, was worried that the restructuring put investors' interests ahead of taxpayers, which would be illegal.
Despite these concerns, the Energy Department maintained that the loan restructuring was legal and did not require Justice Department review. Damien LaVera, a spokesman for the Energy Department, said that career officials in the DOE loan program had carefully analysed the terms of the restructuring and determined that it was legal.
However, newly released emails show that there were disagreements within the administration about the legality of the loan restructuring. Mary Miller, an assistant treasury secretary, advised that the deal could violate the law and recommended that it be reviewed by the Justice Department before approval.
Ultimately, the decision to restructure Solyndra's loan was a complex and controversial one. While the Energy Department maintained that it was legal, there were concerns from other parts of the administration that the deal could violate federal law and put investors' interests ahead of taxpayers.
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Federal law violation
Solyndra was a Fremont, California-based company that was the first renewable-energy company to receive a loan guarantee under a stimulus-law program to encourage green energy. The company received a $528 million loan from the financing bank in 2009.
The Obama administration's decision to restructure the loan to the failing solar energy company was controversial. Emails released in 2011 showed that the Treasury Department was concerned that the loan restructuring could violate federal law. Mary Miller, an assistant treasury secretary, said the deal could violate the law because it put investors' interests ahead of taxpayers. Miller told a top White House budget official that she had advised that any proposed restructuring be reviewed by the Justice Department before it was approved.
However, Damien LaVera, a spokesman for the Energy Department, said that the loan restructuring was legal and did not require Justice Department review. LaVera stated that "career officials in the DOE loan program determined that the restructuring was legal".
A House panel aimed to determine the Energy Department's culpability in aiding Solyndra investors ahead of taxpayers. The panel probed whether federal law was broken in restructuring the company's loan.
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Energy Department's culpability
In 2009, the Fremont, California-based company Solyndra received a $528 million loan from the financing bank. The company was the first renewable energy company to receive a loan guarantee under a stimulus-law program to encourage green energy. However, the company closed its doors on 31 August, letting all of its workers go.
The Obama administration's decision to restructure the loan to the failing solar energy company has been called into question. Emails released in 2011 show that the Treasury Department was concerned that the loan restructuring could violate federal law, as it put investors' interests ahead of taxpayers. Mary Miller, an assistant treasury secretary, said the deal could violate the law and that any proposed restructuring should be reviewed by the Justice Department before it was approved.
However, Damien LaVera, a spokesman for the Energy Department, said that the loan restructuring was legal and did not require Justice Department review. He stated that "career officials in the DOE loan program determined that the restructuring was legal".
The House Energy and Commerce Committee held a hearing to determine whether the Energy Department broke the law when it agreed to restructure Solyndra's debt. The outcome of this hearing is not clear from the sources provided.
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Treasury Department's concerns
The Treasury Department was concerned that the Obama administration's decision to restructure a $528 million loan to Solyndra, a failing solar energy company, could violate federal law. The loan was approved in 2009 as part of a stimulus-law program to encourage green energy. Emails released in 2011 showed that Mary Miller, an assistant treasury secretary, believed the deal could be illegal because it put investors' interests ahead of taxpayers. Miller recommended that the Justice Department review the restructuring before it was approved. However, Damien LaVera, a spokesman for the Energy Department, said that the loan restructuring was legal and did not require Justice Department review. The House Energy and Commerce Committee held a hearing to determine whether the Energy Department broke the law when it agreed to restructure Solyndra's debt.
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Obama administration's involvement
The Obama administration's decision to restructure a $528 million loan to a failing solar energy company, Solyndra, has been called into question. The company was the first renewable-energy company to receive a loan guarantee under a stimulus-law program to encourage green energy and was frequently touted by the Obama administration as a model. Emails released in 2011 show that the Treasury Department was concerned that the loan restructuring could violate federal law, as it put investors' interests ahead of taxpayers. Mary Miller, an assistant treasury secretary, said the deal could violate the law and that it should be reviewed by the Justice Department before it was approved. However, Damien LaVera, a spokesman for the Energy Department, said that the loan restructuring was legal and did not require Justice Department review. The Obama administration's involvement in the Solyndra loan has become an embarrassment for the president, with revelations that the administration hurried budget officials to finish their review of the loan in time for the September 2009 groundbreaking.
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Frequently asked questions
It is unclear whether Solyndra broke the law. Emails released in 2011 showed that the Treasury Department was concerned that the restructuring of a $528 million loan to the company could violate federal law. However, Damien LaVera, a spokesman for the Energy Department, said that the loan restructuring was legal and did not require Justice Department review.
The loan was made in 2009 as part of a stimulus-law program to encourage green energy. The company was frequently touted by the Obama administration as a model.
Solyndra closed its doors on 31 August 2011 and let all of its workers go.
The House Energy and Commerce Committee held a hearing to determine whether the Energy Department broke the law when it agreed to restructure Solyndra's debt. Lawmakers cited emails showing that Mary Miller, an assistant treasury secretary, said the deal could violate the law because it put investors' interests ahead of taxpayers.
