Oversight and Investigations Subcommittee Seeks Answers from OMB on DOE Loan Guarantees, Solyndra

June 22, 2011

WASHINGTON, DC - The House Energy and Commerce Subcommittee on Oversight and Investigations, chaired by Rep. Cliff Stearns (R-FL), will hold a hearing on Friday, June 24, 2011, at 9:30 a.m. in room 2123 of the Rayburn House Office Building.  The hearing is entitled, "OMB's Role in the DOE Loan Guarantee Process."

Committee leaders are investigating DOE's use of stimulus funds, particularly the department's highly publicized $535 million stimulus loan guarantee awarded to Solyndra, Inc. of Fremont, California. OMB is responsible for reviewing and approving the Credit Subsidy Costs of all DOE loan guarantees. Dating back to a March request, the committee leaders have pressed the Office of Management and Budget (OMB) for key documents and information concerning the review of the Solyndra loan guarantee, but OMB has refused to produce the documents. The hearing will also examine issues raised in an October 2010 White House Memorandum regarding the DOE Loan Guarantee Program.

Since the loan guarantee was closed in September 2009, Solyndra has suffered a number of financial setbacks, including the cancellation of a planned public offering in June 2010 and repeated problems with cash flow. The firm has closed one of its factories, laid off workers, and postponed the expansion of the plant that had received the loan guarantee, resulting in the cancellation of a planned hiring spree that had been touted to include as many as 1,000 additional workers. The week of March 7, DOE modified Solyndra's loan guarantee and Solyndra announced a new $75 million loan from its existing investors in an effort to save the company by restructuring its outstanding debts and reducing costs.

The hearing is open to the public and press. Opening statements, witness testimony, and a live webcast will be available HERE.