President Obama strongly defends his administration’s decision to loan $528 million to the solar energy company Solyndra.
“There were going to be some companies that did not work out; Solyndra was one of them,” said Obama. “But the process by which the decision was made was on the merits, it was straightforward.”
The U.S. must help out its own clean energy companies in order to compete with Chinese subsidies that are compelling companies to move offshore.
The Associated Press reports that not everyone is in support of Obama’s spending, “his administration faces increasing criticism of the Solyndra loan and the clean-energy loan program, which has awarded nearly $36 billion in loan guarantees since 2009, including 28 loans worth more than $16 billion under a stimulus-law program for renewable energy.”
Solyndra declared bankruptcy last month and laid off 1,100 employees embarrassing the White House after Obama had referred to the company as model for success. The FBI and the GOP-led House Energy and Commerce Committee launched investigations into the company.
Even with the company’s bankruptcy and multiple investigations, Obama says the loan program is successful overall and has created jobs.
Since Obama’s comments the House Panel has requested to see all emails between the White House and Solyndra since January 2009 when Obama took office.
Fox News reports that more emails were released this week that showed the Energy Department was considering giving Solyndra a second $469 million loan in the summer of 2010 even with the knowledge of the company’s rough financial situation.
Republicans are directing criticisms toward Energy Secretary Steven Chu, who approved the Solyndra loan.
Obama administration officials defend the loan saying without it, Solyndra would have faced bankruptcy much earlier on.
Chu said the United States faces a choice: to sit on the sidelines or try to win the “clean energy race” with China, Germany and other countries.
That’s all for now,