The Office of Management and Budget reviewed the Department of Energy’s first green energy loan guarantee, $535 million to California-based solar panel manufacturer Solyndra Inc. The budget office found that the deal was riskier than the Department of Energy envisioned, so it set aside more money in case of potential default, iWatch News has learned.
The Office of Management and Budget reviews direct loans and loan guarantees by assessing the risk and calculating costs. While OMB’s Credit Subsidy Calculator is not made public, OMB’s process is described in more detail by the Government Accountability Office.
The budget office’s role in Solyndra’s loan guarantee has come under scrutiny by a congressional House committee, and Congress subpoenaed documents to assess OMB’s review of the transaction. However, internal emails and documents were redacted, according to congressmen on the committee. OMB says it is protecting internal deliberations.