"A Serious Problem At Solyndra"

After The Obama Administration Offered To Let The Taxpayer’s Money Take A Backseat To Private Investors, The Chief Counsel Of The Loan Program Said The White House Had “A Serious Problem At Solyndra.”  “On December 8, the day after DOE offered to subordinate its interest, Ms. Richardson emailed the office of DOE General Counsel Scott Blake Harris to request a meeting with Mr. Harris.  She stated, ‘We have a serious problem at Solyndra and need to be brief Scott as soon as possible.’  The problem was that DOE’s proposed subordination of the taxpayers’ interest to private investors violated the plain language of the Energy Policy Act.  In an interview with Committee staff, Ms. Richardson stated that during the December 8 meeting with Mr. Harris, she briefed him on the terms and conditions of the proposed Solyndra restructuring, including the subordination. Although DOE had already agreed to subordinate its interest, Ms. Richardson explained that it was her understanding that the deal could not go forward until her office determined whether the subordination violated Section 1702(d)(3) of the Energy Policy Act. 530  Section 1702(d)(3) provides that “[t]he obligation shall be subject to the condition that the obligation is not subordinate to other financing.’” (“The Solyndra Failure,”Committee On Energy And Commerce, U.S. House Of Representatives, 8/2/12, pps. 80-81) 

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