The review is a tacit acknowledgment that the loan program, defended by President Obama and his senior advisers for weeks, has raised enough internal concern that an outside assessment is necessary to clear the air and determine its future. The announcement came as congressional Republicans threatened to subpoena White House records relating to the Solyndra case if the administration does not produce requested documents.
Daley named Herbert M. Allison Jr., a former assistant Treasury secretary, to head what will be a 60-day review. Allison is charged with assessing the health of the existing portfolio and making recommendations for how to better ensure the security of future loans, including ways to identify potential problems with recipient companies earlier than the government did in the case of Solyndra.
“The president is committed to investing in clean energy because he understands that the jobs developing and manufacturing these technologies will either be created here or in other countries,” Daley said in a statement. “And while we continue to take steps to make sure the United States remains competitive in the 21st century energy economy, we must also ensure that we are strong stewards of taxpayer dollars.”
The issue has become a political problem for Obama, who has been forced to defend the Solyndra investment as he pitches new plans to promote economic recovery. But the outside review holds as much promise as peril for the administration, given that a clean bill of health for the loan portfolio, issued by Allison and his team, could help buttress Obama’s argument that the overall initiative has been a success.
That is unlikely to appease Republicans, however, who remain focused on the loan process. On Friday, the House Energy and Commerce Committee announced that it would meet next week to consider authorizing the issuance of a subpoena for White House documents related to the Solyndra case.
The solar-panel manufacturer, based in Fremont, Calif., was the first company to win an energy loan guarantee from the Obama administration. It closed Aug. 31, putting 1,100 employees out of work.
Internal White House e-mails have shown that senior administration officials discussed Solyndra’s weak finances and shared fears that the loan could become a political liability for Obama, who has called green energy a key element of the country’s economic future. One White House e-mail suggested that the Energy Department was “ill-equipped” to select the appropriate companies for the loan guarantees.
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