U.S. Congressman Fred Upton

Washington, DC, Jul 12, 2012 - Congressman Fred Upton (R-MI), Chairman of the House Energy and Commerce Committee, and Oversight and Investigations Subcommittee Chairman Cliff Stearns (R-FL) this week released the text of their draft bill the “No More Solyndras Act.” The legislation is a product of the committee’s investigation into the $535 million U.S. Department of Energy (DOE) loan guarantee to the California solar panel manufacturer that ultimately went bankrupt, costing thousands of jobs and leaving taxpayers on the hook for half a billion dollars. This morning, the Subcommittee on Energy and Power and the Subcommittee on Oversight and Investigations convened a joint legislative hearing on this draft legislation.  Read Upton’s opening statement here.

Upon releasing the bill, Upton stated, “Our investigation has uncovered a number of disturbing truths behind DOE’s loan guarantee program, ground zero of the Obama administration’s failed stimulus. Billions of dollars were hastily pushed out the door, with the Obama administration more worried about sending press releases announcing stimulus projects than if the projects were worthy and would create jobs. Sadly, the bankruptcies are starting to pile up. If oversight is done well, it should result in good legislation, and that is what we have in the ‘No More Solyndras Act.’ Our legislative fix will give folks in Michigan the peace of mind that such a disaster like Solyndra will never happen again. In light of the recent string of bankruptcies, Solyndra, Beacon Power, and Abound Solar just last week, our bill takes a stand for American taxpayers, declaring loud and clear that there will be ‘No More Solyndras.’”

As the committee’s investigation revealed, the Obama administration put Solyndra’s loan on the fast track despite repeated red flags and warnings from the Office of Management and Budget (OMB) and DOE officials. When the warnings came to fruition and Solyndra was out of cash in the autumn of 2010, the Obama administration doubled down on its bad bet, restructuring Solyndra’s loan in early 2011 and putting wealthy investors at the front of the line ahead of taxpayers. Upton coauthored this draft legislation to ensure taxpayers are never again stuck paying hundreds of millions of dollars because of the Obama administration’s risky bets.

The “No More Solyndras Act” will phase out DOE’s flawed loan guarantee program under Title XVII of the Energy Policy Act of 2005 and provide taxpayers strong new protections for any pending participants in the program. The bill provides greater loan guarantee transparency by requiring DOE to report to Congress on the decision-making process and details of the loan. The bill also prohibits DOE from restructuring the terms of any guarantee and forbids the subordination of U.S. taxpayers’ dollars to any other investors.

For text of the draft Upton-Stearns “No More Solyndras Act,” click HERE.