DOE Green Tech Loans Less At Risk, But New Safeguards Urged

White House report finds adequate reserves for loan defaults, but additional safeguards need to be put in place.

Published: 13-Feb-2012

Washington— The Energy Department is estimated to lose $3 billion on its loan program for green energy and retooling auto plants for more efficient cars. That's less than Congress anticipated when it set aside $10 billion for risks associated with funding these emerging industries, according to a White House report released Friday.

The report was requested in the wake of the collapse of solar panel startup Solyndra LLC, which filed for bankruptcy. The government may lose all $528 million it loaned the company.

The review, which was conducted by Herbert Allison, the former assistant Treasury secretary overseeing the $700 billion Wall Street and auto bailout funds, called for strengthened oversight of the loans. The Energy Department awarded no new loans during the review.

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