After Solyndra, Other Energy Loans Draw Scrutiny The now-bankrupt solar company Solyndra was just one of the clean energy businesses that got loan guarantees from a federal program that ended Friday. In all, the Department of Energy program financed 28 projects with $16 billion. A Republican leading hearings on Solyndra says loans were rushed out the door.
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After Solyndra, Other Energy Loans Draw Scrutiny

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After Solyndra, Other Energy Loans Draw Scrutiny

After Solyndra, Other Energy Loans Draw Scrutiny

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We're going to hear now about the Department of Energy, specifically about the program that issued half a billion dollars in loan guarantees to the now-bankrupt solar company Solyndra.

P: As NPR's Yuki Noguchi reports, it financed 28 projects in all with $16 billion in loan guarantees.

YUKI NOGUCHI: Florida Republican Cliff Stearns chairs an energy and commerce subcommittee on oversight and investigations. Stearns is now critical of the program he originally supported when Congress created it.

CLIFF STEARNS: I think the administration is putting taxpayers' money at risk in areas that are not creating jobs.

NOGUCHI: In all, the Energy Department says the projects will create about 17,000 construction and permanent jobs. Stearns says he is hugely critical of how loans in the program have been handled. He says they were rushed out the door.

STEARNS: We asked them to hold up any more loan guarantees so that they could be looked at more carefully, so we don't have any more Solyndras.

NOGUCHI: Kevin Smith is a CEO of SolarReserve, which is building a two-mile-wide solar power generator in Tonopah, Nevada. He calls getting an Energy Department loan guarantee the most exhaustive vetting process he's been through in 25 years of working in energy.

KEVIN SMITH: It was a pretty brutal due diligence process.

NOGUCHI: The process took two years.

SMITH: Down to the level - I mean, I had questions: Kevin, you went to Sacramento on the 17th of February. You know, was that trip related to the Tonopah project? You know, it's a $500 issue.

NOGUCHI: But he also says that doesn't mean his project is a risky investment for the taxpayer. SolarReserve is a proven technology and already has a 25-year contract with a utility company.

SMITH: It's like us building a hotel and we've sold out 100 percent of the rooms for 25 years when we start construction.

NOGUCHI: This is why Rhone Resch, who heads the Solar Energy Industries Association, says that the debate over what happened at Solyndra cannot inform the debate about clean energy investment overall.

RHONE RESCH: It's improper to view the entire industry through the lens of one failed company.

NOGUCHI: Resch adds that in the past two years, solar companies have doubled their employment to 100,000 people.

RESCH: We're putting electricians, roofers and plumbers back to work in the solar industry after they've been let go by the housing industries.

NOGUCHI: When I asked Cliff Stearns, the Republican hosting the hearings on Solyndra about the seemingly low-risk revenue models of many of the loan guarantee recipients, he acknowledged those might be safer bets. But he still doesn't like the idea of government putting taxpayers on the line for other ventures.

STEARNS: We can't compete with China to make solar panels and wind turbines.

NOGUCHI: Yuki Noguchi, NPR News, Washington.

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