From Solyndra to Solargate

There is a new aspect to the ongoing Solyndra scandal involving DOE Secretary Steven Chu and the his attempt to keep a wobbly Solyndra afloat. Congressmen Cliff Stearns and Fred Upton “are greatly concerned at the extraordinary measures the Obama administration appears to have taken in keeping Solyndra afloat."

Project Amp was a DOE program that sought out cooperating businesses to install solar panels on their rooftops. Several large corporations participated in the program including Bank of America Corp., NRG Energy Inc., and Prologis, an international firm that owns and manages commercial office buildings. To induce these firms into to participating the DOE had to guarantee the loans. As is the case in many of the DOE programs much of the money and loan guarantees went to companies that could afford to do the projects on their own but that wouldn't be interested in pouring their own money down a green rat hole.

Prologis had committed to the Project Amp but had not selected a supplier for the solar panels. By this time the DOE knew Solyndra was treading water and the two congressmen are asserting, but not yet saying, that Chu leaned on Prologis to buy its panels from ailing Solyndra. Energy Department employees took part in negotiations between Solyndra and Prologis on the roof project, helping to work out a “shipment schedule, the number of megawatts Solyndra would supply and the price per watt, the congressmen state.

The Solyndra scandal has morphed into Solargate as the number of failing solar companies grows almost monthly but up until now Chu has not been accused of any wrong doing. That may be about to change.