Weber: Risky Business - The DOE Loan Guarantee Program

By Congressman Randy Weber (R-TX)

It’s time to fundamentally revamp the Department of Energy’s (DOE) Loan Programs Office—and we need to do it under a strong, America-first administration like President Trump’s. What was originally designed to support promising energy innovation has been hijacked by the Left and turned into a taxpayer-funded piggy bank for their radical climate agenda. It no longer serves the American people—it serves politics.

As of September 2024, the Loan Programs Office had financed an eye-popping $43.9 billion in so-called “innovative clean energy” projects and advanced vehicle manufacturing ventures across the country. Over the past decade, it has closed more than $30 billion in deals—many of them speculative, politically motivated, and disconnected from market reality. Under President Biden’s Inflation Reduction Act, the LPO's authority was not only expanded, it was repurposed—to push climate activism, environmental justice schemes, and government-controlled job creation, all at the expense of reliable, market-driven American energy.

This is exactly why the program needs serious reform. We should be using this office to advance energy sources that are proven, dependable, and aligned with American interests—like nuclear, clean coal, and natural gas.

Let me give you a perfect example of why this reform is so urgent.

Back in 2017, as Chairman of the Energy Subcommittee on Science, Space, and Technology, I led a hearing titled “Risky Business: The DOE Loan Guarantee Program.” We highlighted the Ivanpah solar project—one of the DOE's so-called success stories. I warned at the time that the project was built on the backs of taxpayers and forced Californians into paying up to five times more for electricity.

Fast forward to today: Ivanpah is shutting down. The $1.6 billion facility couldn’t survive in a competitive energy market. And to make matters worse, it still hasn’t fully repaid its taxpayer-backed loan. Sound familiar? It should. This is Solyndra 2.0—another Obama-era DOE darling that went belly-up and left hardworking Americans holding the bag for $535 million.

These aren't one-off mistakes. They are symptoms of a broken system—one where unelected bureaucrats pick winners and losers, and the American taxpayer loses every time.

When the Department of Energy acts like a venture capitalist, there’s no upside for the people footing the bill. Even if a loan is repaid in full, the risk is still borne entirely by taxpayers. If a project succeeds, private investors win. If it fails, it’s Main Street America that pays the price.

This should be a wake-up call for climate activists who insist on pushing unreliable energy sources as silver bullets. I’ll be the first to say renewables have a supporting role in our energy future—but they should never be the lead actor. And let’s face it: solar power doesn’t work when the sun goes down.

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The federal government has no business gambling with billions of taxpayer dollars on speculative energy experiments. In my district along the Gulf Coast, we’re home to hundreds of energy businesses—from renewable diesel to liquefied natural gas. These companies thrive not because of government handouts, but because they compete in a free market that rewards innovation and results.

Let me be clear: the Department of Energy should not be playing venture capitalist with loaned taxpayer dollars. The free market—not unelected bureaucrats in Washington—should determine which energy sources succeed. That’s why it’s time for serious conversations about the future of this program.

This week, as Chairman of the Energy Subcommittee on Science, Space, and Technology, I will be holding a hearing to build on the groundwork we laid back in 2017—when we first sounded the alarm on the risks and mismanagement of the DOE Loan Programs Office. Does the office need to be dismantled? Reformed? Overhauled? Stripped of green giveaways? These are the questions we’re going to ask—and I intend to get answers that put the American taxpayer first.

Congressman Randy Weber (R) represents the 14th Congressional District in Texas and serves as Chairman of the House Energy Subcommittee on Science, Space, and Technology.