A scathing memo from the Department of Energy’s inspector general is calling for an immediate pause to the Biden administration’s $400 billion energy loan program, citing fraud risks and lack of oversight. The memo highlights failures in the Loan Programs Office (LPO), which has been fast-tracking loans to green energy projects.
The LPO’s rapid expansion under Biden has been marked by accusations of favoritism and conflicts of interest. Inspector General Teri Donaldson revealed that the office has not complied with federal regulations requiring the identification of conflicts between loan-seekers and contractors.
NEW: The Department of Energy's inspector general is calling on the Biden admin to halt its rapid-fire green energy loan program.
The IG says the program "poses a significant risk of fraud, waste, and abuse" and notes that the DOE has failed to *track conflicts of interest.* pic.twitter.com/UDISwmZ15S
— Thomas Catenacci (@ThomasCatenacci) December 17, 2024
Sen. John Barrasso (R-WY) responded by urging Energy Secretary Jennifer Granholm to suspend the program, calling the administration’s actions reckless. “This loan program must be paused to prevent fraud and protect taxpayers,” Barrasso said.
The LPO’s recent loans have drawn scrutiny, including $861 million to AES Marahu, a company connected to LPO director Jigar Shah. Shah has also faced questions over a pending $1.5 billion loan to Plug Power, a firm he invested in through his private venture capital firm.
Donaldson criticized Shah’s refusal to halt the program, noting that the LPO’s lack of tracking makes it impossible to assess compliance. “The LPO seems to believe ignoring conflicts of interest is the same as avoiding them,” Donaldson wrote.
The inspector general’s office is preparing a more extensive report expected to detail further issues within the LPO, which now oversees a lending authority rivaling major financial institutions.
