OVERNIGHT ENERGY: Senate to weigh in on Energy Department loan program

State of play: The Senate Energy and Natural Resources Committee will hold a hearing on the Energy Department’s loan program Tuesday, an issue that has risen to the top of House Republicans’ agenda but has gotten little play in the upper chamber.

Committee Chairman Jeff Bingaman (D-N.M.) has been reluctant to weigh in on the controversy surrounding the loan program, arguing that House Republicans have politicized the issue in a string of hearing on the $535 million loan to failed solar firm Solyndra.

But Bingaman will wade into the thorny political issue Tuesday during a hearing on a White House-mandated review of the Energy Department’s loan guarantee program.

The review — which was conducted by Herb Allison, the former Treasury Department official who oversaw the Troubled Asset Relief Program — called for several steps to improve oversight of the program, including the establishment of an “early warning system” to identify problems with the loans.

But the review also estimated that the risk to the taxpayer from the program was lower than an earlier federal assessment. Allison’s report predicted that the taxpayer could be on the hook for almost $3 billion — less than an Energy Department assessment of slightly more than $5 billion.

Energy Secretary Steven Chu, who has been the target of intense GOP criticism over his handling of the loan program, will testify at the hearing along with Allison.

Chu has said he is confident that the loan program will lose less than the estimate in Allison’s report.

“I would be very surprised if we lost that,” Chu told reporters last month.

Expect Republicans to criticize Chu over the loan program, citing a new Government Accountability Office report that said the department has a flawed system for documenting and tracking loan guarantee applications.

NEWS BITES:

Natural gas, energy tax extension battles loom in Senate

The Senate is slated to continue voting on amendments to sweeping transportation programs legislation Tuesday. Amendments on tax breaks for natural-gas vehicles, extension of green-energy tax credits and other matters loom this week.

Watch E2-Wire and The Hill’s Floor Action blog for updates.

NRC officials to talk regulations

Top officials with the Nuclear Regulatory Commission including Chairman Gregory Jaczko will speak at the NRC’s three-day Regulatory Information Conference, which begins Tuesday.

More info here.

Oil trade group sues EPA over biofuels mandate

The American Petroleum Institute is suing EPA over what the trade group considers unachievable requirements for cellulosic biofuels.

The Oil & Gas Journal has more here. 

IN CASE YOU MISSED IT...

Here's a quick roundup of recent E2 stories:

- Obama: 'Loose talk' of war is contributing to high gas prices
- Sen. Burr says amendment expanding tax credit for natural-gas vehicles likely to fail
- GAO faults Energy Department loan program
- White House defends Obama on gas prices after poor poll numbers
- God controls the climate, not humans, suggests Sen. Inhofe
- Poll shows trouble for President Obama on gas prices, economy
- Nuclear agency chief seeks to accelerate post-Fukushima disaster safety reforms
- Reid: Republicans exaggerating benefits of Keystone XL pipeline
- Analysts: White House, Congress have little control over rising gas prices
- Obama: End 'bumper sticker' approach to energy policy
- Gov. Dalrymple: Obama is 'killing energy development'

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