By Ben Geman - 09/12/12 05:32 PM EDT
“Despite some merits, ‘The No More Solyndras Act’ has a glaring loophole that should have it redubbed the ‘Even More Solyndras Act,’” said Ryan Alexander, president of Taxpayers for Common Sense.
“Lawmakers need to stop the program from putting taxpayers on the hook for billions in loan guarantees instead of passing bait-and-switch legislation,” Alexander said.
And Andrew Moylan, vice president of the National Taxpayers Union said, “The House should amend the bill to strengthen provisions dealing with loan guarantee applications already in the pipeline to ensure that these 'zombie' projects don't draw any more blood from taxpayers.”
The bill would also bar “subordination” of taxpayers’ interest to private investors.
The early 2011 restructuring of Solyndra’s loan put private investors, who were providing more capital to the struggling company, ahead of the government for repayment if the company collapsed.
The Energy Department opposes the bill, arguing “subordination” should be available as a last-ditch, rarely used tool to help distressed companies.
Advocates of the embattled green energy loan program say the bankruptcies of a small percentage of loan recipients should not obscure the wider successes of the loan program in boosting wind and solar power generation.