Vitter bill would require audit of renewable energy loans

Sen. David Vitter (R-La.) floated legislation Wednesday that would require an inspector general investigation into any company that receives federal money for renewable energy development and then goes bankrupt.

The legislation — dubbed the Federal Accountability of Renewable Energy (FARE) Act — is a response to the bankruptcy of a California solar company that received a $535 million loan guarantee from the Obama administration.

Co-sponsored by Sen. Ron Johnson (R-Wis.), the bill would require that federal agencies conduct a full audit of any renewable energy projects that have received taxpayer money from fiscal years 2009 to 2011.

The audit must determine how successful the project is, including how many jobs it has created and what its profits are. In addition, agencies would be required to identify which venture capital firms helped finance the project.

Any companies that declare bankruptcy or fail to meet the objectives required by the federal government would be subject to an inspector general investigation under the legislation.

Republicans have pounced on the bankruptcy of California-based Solyndra, arguing the Obama administration rushed to approve a loan guarantee to the company without subjecting the company to adequate oversight.

The Hill has more about the political fallout from the Solyndra bankruptcy here.