The rapid expansion of a federal lending program aimed at supporting green energy projects, poses “tremendous risk” to taxpayers, according to a report from the Office of Inspector General (OIG) for the U.S. Department of Energy (DOE).
The report, released on Nov. 25, outlines significant concerns about the DOE’s Loan Programs Office (LPO), which uses taxpayer funds to support green energy projects that often lack access to private financing because traditional lenders and investors are deterred by unproven technologies, uncertain market potential, or high upfront costs associated with these initiatives.
The LPO program has seen its lending authority expand rapidly during the Biden administration, which the OIG said raises alarms over the possibility of loan defaults, potentially leaving taxpayers on the hook for billions in losses….