GOP Questions Chu's Competence As Energy Secretary

By Adrianna McGinley

Energy Secretary Steven Chu emphatically denied any wrong doing on his part or that of his Department in the decision to provide the now bankrupt solar energy company Solyndra with a $535 million government loan guarantee in 2009.

Members of the House Committee on Energy and Commerce Subcommittee on Oversight and Investigations rigorously questioned Secretary Chu about what he knew regarding the decision to move forward with the loan and when he knew it. Republican members referenced numerous emails they said clearly showed the eminent failure of the company.

Chu denied having any knowledge of the emails at the time the loan was approved and said given the information that was available at that time “competent decisions were made”.

Chu attributes the failure of the company not to bad decisions, rather to an unforeseeable economic downfall spurred by rising competition and government support in China to further solar energy development. Chu added that the U.S. must be willing to take risky decisions and make risky investments in order to support a sustainable future and create jobs.

“There’s a heavy expectation in the business world that these technologies will become competitive without subsidy in a relatively short period of time,” Chu said. “The whole issue is…do we want to be buyers or sellers?”

GOP members also grilled Chu on whether or not he was aware of any communication between the White House and the DOE regarding the decision to restructure the loan and the decision to delay the announcement of Solyndra layoffs and looming financial default until after the 2010 midterm elections.

Chu emphatically denied any pressure or influence from the administration on these issues, saying “I’m not sure what communications there were between DOE and the White House, but certainly we did not communicate with the White House on whether we should approve the loan…that was our responsibility.”

Chu also denied White House pressure to restructure the loan in February 2011, adding that the decision was a difficult one.

“We either had to stop the loan, which would have made Solyndra go into immediate bankruptcy with a half completed factory, or we could say we can continue on the contract of the loan, which was to build this factory,” Chu said. “Once the factory was complete Solyndra would have a fighting chance of continuing or it could offer that factory sale as a whole unit.”

“We were always focused on that path that could get as much taxpayer recovery as possible,” Chu emphasized.

Chu added these loans are inevitably risky in nature and the legislation of the entire DOE loan program reflects that. Chu said the legislation passed by Congress includes $10 billion budgeted for losses, but when asked how much of the lost tax payer money would be recovered, he said “not very much.”

Members on both sides of the aisle also questioned the legality under the 2005 Energy Policy Act of the decision to subordinate tax payer recovery for corporate interests during the process of restructuring. GOP members maintained Chu broke the law in making that decision, sparking several members to question whether Chu is competent as energy secretary and whether resignation should be considered.

“Have you discussed with your boss whether or not you should continue in your position having violated the spirit of the Energy Policy Act of 2005?” Rep. Michael Burgess (R-Texas) questioned.

Chu responded, “we believe there was no violation of the law.”

Obama Attempts To Bridge Support For Jobs Package

With the “functionally obsolete” Brent Spence Bridge at his back, President Obama challenged Republican leaders in Congress to approve his jobs bill that includes over $100 billion for new infrastructure projects and repairs.

Obama admitted that one of the reasons he chose the bridge — which connects Ohio to Kentucky — as his backdrop for today’s pitch, is because of its geographical ties to House Speaker John Boehner (R-Ohio) and Senate Minority Leader Mitch McConnell (R-Ky.).

“[They] are the two most powerful Republicans in government,” he said. “They can either kill this jobs bill, or they can help us pass it.”

Though the president’s $447 billion plan covers a number of areas — including tax cuts and credits, broadband investment and mortgage refinancing for homeowners — it’s the funding reserved for infrastructure projects he focused on today. Obama urged lawmakers to quit squabbling over the need to reign in spending, and approve $50 billion worth of transportation funding included in the bill.

“If you want construction workers rebuilding bridges like this one,” he said, “pass this jobs bill.”

Ohio, in particular, would stand to receive just over $1 billion for highway and transportation projects. The White House says the money would create nearly 14,000 jobs in the Buckeye State, which is plagued by a 9 percent unemployment rate.

Obama argued that aside from the bridge behind him, there are numerous other area transit routes in need of repair.

“I can’t imagine that the Speaker wants to represent a state where nearly one in four bridges is classified as substandard,” he said.

Earlier in the day, Boehner thanked the president for bringing attention to the Brent Spence Bridge, which lies in a district that neighbors the one he represents.

“I know how important the Brent Spence Bridge is to our region,” he said. “I’ve long supported replacing the bridge, and I’m pleased the president is bringing attention to this much-needed project.”

However, Boehner complained that the president’s plan does not put enough emphasis on undoing regulations, which he said are hurting businesses in his state. Boehner also decried Obama’s plan to pay for the bill in part by raising taxes on those earning more than $250,000 per year.

“His plan, in my opinion, will destroy jobs by raising taxes on small businesses and our capital, the key ingredient, I think for job creation in our country.”

Yet, Obama stood by his pay-for proposal, arguing that it appropriately prioritizes a struggling middle class in need of help.

“The Republicans in Congress,” he said, “call this class warfare. Well you know what? If asking a billionaire to pay the same tax rate as plumber or teacher makes me a warrior for the middle class, I’ll wear that charge as a badge of honor.”

Administration Officials Come Under Fire During Solyndra Hearing

By Adrianna McGinley

Witnesses in the Solyndra investigation faced intense questioning by members of the House Committee on Energy and Commerce during a hearing Wednesday.

Jonathan Silver, Executive Director of the Loans Programs Office for the Department of Energy, and Jeffrey Zients, Deputy Director of the White House’s Office of Management and Budget, testified before the Committee conducting the investigation into a $535 million loan awarded to Solyndra, Inc. under Title XVII of the Energy Policy Act of 2005.

Last week, the company suspended business and announced bankruptcy, launching the investigation. 

Rep. Diana DeGette (D-Colo.) in her opening remarks stated that the questions to be answered were whether the Bush and Obama administrations conducted sufficient due diligence before approving the loan, whether the Department of Energy sufficiently monitored the financial status of Solyndra after the loan had been disbursed, whether Solyndra made accurate representations of its financial prospects both before and after loan disbursement, and whether the government made the right decision in restructuring the loan when Solyndra’s financial standing deteriorated.

The hearing quickly sparked finger pointing as both sides closely questioned the timeline of the loan approval, attempting to determine attribution to either the Bush or Obama administration. Questions of political favoritism came in to play, as did questions of whether the witnesses were career civil service employees or political appointees.

Answers from witnesses often seemed unclear, leading Rep. Tim Murphy (R-Pa.) to say to Silver, “I really want you to stop throwing everybody else under the bus, I hear you throwing all your staff under the bus. I want to know, you’re in charge, you’ve handled loans of this size and now you’re saying its everybody else’s fault except you, but you’re in charge.”

Executives from Solyndra were scheduled to be at Wednesday’s hearing, but will instead be testifying next week.

Obama Spending Plan Fuels Debate

Congress likely will not take substantive action in the short run on President Barack Obama’s request for $50 billion to be used on infrastructure projects.

Both the House and Senate resume session next week, but for how long remains to be seen. Members are expcted to spend most of their time between now and November campaigning for re-election.

Already, the President is receiving blowback from his speech Monday in which he announced his new plan to create jobs by funding a series of transportation measures.

Senate Minority Leader Mitch McConnell (R-Ky.) said the plan “should be met with justifiable skepticism.”

“We don’t need more government ‘stimulus’ spending,” added House Minority Leader John Boehner (R-Ohio). “We need to end Washington Democrats’ out-of-control spending spree, stop their tax hikes, and create jobs by eliminating the job-killing uncertainty that is hampering our small businesses.”

Democrats have successfully overcome a series of Republican hurdles this year to pass legislation, but given mounting voter discontent over deficit growth it is uncertain how much of an appetite they still possess to attach their names to more spending.

In a conference call with reporters on Monday, one senior White House official said the plan is not an added stimulus, but rather a long-term initiative that would also create jobs quickly, perhaps as early as 2011. However, critics point out that the aim of last year’s monumental stimulus package was also to bring down unemployment in the short-term, a goal that went unmet.

Obama Holds Mini-Town Hall In Ohio Family’s Backyard

President Barack Obama continued his campaign-style swing through the country on Wednesday, taking questions from voters in Columbus, Ohio.

Before engaging a crowd of about 30 which had gathered in the backyard of Joe and Rhonda Weithman, the President made a few remarks about the economy. The message was clear: though millions of Americans remain out of work, the administration  has taken steps to put the country on the road to recovery.

“We had to act fast to prevent what could have been a Great Depression, and we were successful in doing so,” said Obama. “We stabilized the economy, we stabilized the financial system [and] we didn’t have a complete meltdown.”

Obama met with the Weithmans in their kitchen for about 15 minutes prior to his backyard remarks. According to the White House, the family benefitted directly from President’s Recovery Act, with Joe - a small business owner - able to retain two of his employees, and Rhonda able to keep her health insurance despite losing her job last year.

During the nearly 45 minute question and answer session that followed, participants focused mainly on pocketbook issues, such as jobs, social security, healthcare and educational costs.

The President said new infrastructure spending included in the stimulus law, and reforms to the student loan industry included in the healthcare reform law passed earlier this year will hopefully create jobs for those living in the ‘Rust Belt,’ and will ease the process by which college students apply for and pay off loans.

Obama also addressed concerns over the nation’s growing deficit, which is expected to run near $1.47 trillion next year.

“People, consumers, are not going to start spending until they feel a little more confident that the economy’s getting stronger,” he said. The President added that he wants to ensure that measures to lower the deficit do not interfere with economic recovery.

A number of Democrats running for re-election were in attendance today, including Ohio Governor Ted Strickland (D), who faces a stiff challenge from his opponent, former state Representative John Kasich (R), in his bid for re-election this November. Democratic Lt. Governor Lee Fisher, who is running for U.S. Senate, as well as U.S. Rep. Mary Jo Kilroy (D), who is fighting to keep her seat, were also present.

U.S. Rep. Steve Driehaus (D) did not attend.

Following the stop in Columbus, the President was expected to make remarks at an afternoon fundraising event for Strickland before flying to Miami to help raise money for Florida Democrats tonight.