Energy Secretary Chu Takes Full Responsibility for Solyndra

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Chu's prepared remarks indicate he will defend the decision to loan money to Solyndra as part of a risky but nonetheless essential program aimed at keeping the U.S. competitive with other countries competing for dominance in the emerging clean energy space. His testimony describes the tough choices the Energy Department faced as it discovered Solyndra's business plan was finding it increasingly difficult to compete with China.

"The Department faced a difficult decision: force the company into immediate bankruptcy or restructure the loan guarantee to allow the company to accept emergency financing that would be paid back first if the company was still unable to recover," Chu's testimony says. "Immediate bankruptcy meant a 100 percent certainty of default, with an unfinished plant as collateral. Restructuring improved the chance of recovering taxpayer money by giving the company a fighting chance at success, with a completed plant as collateral."

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