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Solyndra Investigator Gary Andres Worked Both Sides Of Loan

First Posted: 11/28/11 09:51 AM ET Updated: 11/28/11 12:33 PM ET

WASHINGTON -- When the House Energy and Commerce Committee met in October to decide what Solyndra-related documents to subpoena from the White House, the panel's lead staffer, Gary Andres, as ever, was in the closed-door meeting.

Just three years earlier, Andres was on the opposite side. In 2008, he was a top lobbyist with Dutko Worldwide, which was paid $50,000 to craft Solyndra's loan guarantee application to the Bush White House, according to lobbying records.

The energy panel has relentlessly pursued the Obama administration's handling of the loan guarantee to the solar panel company, which went bankrupt despite a $528 million loan. Energy Secretary Steven Chu testified before an Energy and Commerce subcommittee earlier this month at the request of Republicans.

Earlier this month, over the objection's of committee Democrats, the panel took the remarkable and unprecedented step of subpoenaing internal White House emails related to the Solyndra loan.

Andres is not registered as having specifically worked on the Solyndra loan guarantee, and a spokesperson for the committee, which is chaired by Rep. Fred Upton (R-Mich.), a super committee member, said that Andres did not have any involvement with the company while at Dutko.

According to lobbying records, Dutko lobbied the office of the loan guarantee program and the White House Office of Management and Budget, among other executive offices, "regarding the Solyndra loan application."

Federal records list Deanna Perlmutter as having registered on Dutko's behalf to lobby for Solyndra. Perlmutter is a high-profile lobbyist who divorced Democratic Rep. Ed Perlmutter of Colorado in 2008, the same year she left Dutko for Holland & Knight, another high-powered firm in Washington. Perlmutter took the Solyndra contract with her. The energy company paid another $50,000 to Holland & Knight for the fourth quarter of 2008 and hasn't contracted with Dutko since. An attempt to reach Perlmutter was unsuccessful. Andres forwarded a request for comment on to a spokeswoman for the committee.

Andres' Dutko connection was spotted by Upton's Democratic congressional opponent, and brought to the attention of HuffPost and the local Kalamazoo Gazette.

"Fred Upton is guilty of a House ethics violation for not stopping Andres' influence on the Solyndra investigations -- at the very least," said John Waltz, who is currently running for Upton's seat. "Hiring a reverse revolving-door lobbyist that misbehaves badly is no more surprising than the results you would get from attempting to bathe a spitting cobra."

There is no evidence that Andres' connection to Dutko and Solyndra inspired him to go soft on the company or the Obama administration. Rather, it's another example of the internecine mixture of business and politics in Washington, where one's political position can fluctuate given the occupant of the White House or the author of lobbying retainer checks. Andres, the committee's staff director, is the author of the 2008 book "Lobbying Reconsidered: Real Politics in America." Andres is a well-known figure in conservative circles and served as a legislative liaison in the administration of president George H.W. Bush, where he first met Upton.

Republicans have treated the Solyndra loan as if it is President Obama's Watergate. Indeed, GOP presidential contender Rep. Michele Bachman (R-Minn.) has said it "makes Watergate look like child's play."

During Secretary Chu's testimony, Upton borrowed Watergate phrasing while questioning the Nobel laureate.

"What did Secretary Chu know about the situation at Solyndra, and when did he know it, and how did he act on this information, if at all?" wondered Upton.

Alexa Marrero, a spokeswoman for the energy committee, said that Andres' activity before he came to the panel doesn't change the situation. "While Gary was never registered on behalf of Solyndra or aware until recently of Dutko's brief representation of the company in 2008, before it received its federal loan guarantee, it's hard to see how Solyndra's choice of a Democratic lobbyist at a particular firm changes the facts of the case, which are these: despite serious warning signs from within the administration that a federal loan to Solyndra would be a losing proposition, the Department of Energy gave a green light to a half-billion dollar loan to this company, followed by a restructuring that put taxpayers at the back of the line. Now the committee is asking what went wrong, and what can be done to ensure taxpayers aren't left on the losing end of this kind of bad bet ever again," she said in an email to HuffPost.

Chu, during his congressional testimony, noted that the GOP Congress, which initially created the loan program, explicitly expected it to incur losses due to the experimental nature of some of the projects.

Correction: An earlier version of this article incorrectly described the Solyndra loan as worth $528 billion. Solyndra borrowed $528 million.
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WASHINGTON -- When the House Energy and Commerce Committee met in October to decide what Solyndra-related documents to subpoena from the White House, the panel's lead staffer, Gary Andres, as ever, wa...
WASHINGTON -- When the House Energy and Commerce Committee met in October to decide what Solyndra-related documents to subpoena from the White House, the panel's lead staffer, Gary Andres, as ever, wa...
 
 
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COMMUNITY PUNDITS
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Hank10303 11:49 AM on 11/28/2011
Gary Andres, worked to acquire the loan for the Bush White House, he was involved as well during the early days of the Obama White House to secure the loan. Now, he is consulting with the republican controlled House and its Energy and Commerce Committee. It would seem that Andres is a republican that shares interest with the republican political machine. The fact that the republicans are now cozy with him  Read More...
06:02 PM on 11/30/2011
Come on....it was just a stupid mistake. Granted a $500 million mistake. If you are going to give special companies money then some of it is going to be lost.
HUFFPOST SUPER USER
dbrett480
12:39 AM on 11/30/2011
I thought Obama was supposed to change Washington.
07:29 AM on 11/29/2011
I am shocked!....next you are going to tell me that the republican'ts don't give a darn about the working class and poor!
HUFFPOST SUPER USER
Jim Pasterczyk
Banned!
04:59 AM on 11/29/2011
This is what's known as a conflict of interest, which anyone who works in any level of government should be barred from having or creating after the fact.
HUFFPOST SUPER USER
beardown
02:01 AM on 11/29/2011
This has nothing to do with his past!
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HUFFPOST SUPER USER
mudshark12
Now who are you jiving with that cosmik debris?
12:36 AM on 11/29/2011
What a tangled web of deceit Gary Andres weaved.
HUFFPOST SUPER USER
kamact
Market Observer
11:56 PM on 11/28/2011
Corrupted,...
11:55 PM on 11/28/2011
Hope and Change ?
11:48 PM on 11/28/2011
Money to solar startups meant to alleviate this mess..sounds very "fair and balanced to me",, what will it take for you to realize how FOS your argument is ??,,The only thing i can agree with you is how govt $$ is awarded..Even there you only view it thru a partisan lens..as if insiders just started getting "deals " 3 yrs ago.. HELLO ANYONE HOME? WAKE UP.
11:12 PM on 11/28/2011
its so nice to see the born again neo-cons who have now become anti -political influence so soon after their conversion to deficit hawks,,I give you credit,, You have no scruples ,hypocrisy doesn`t faze you,,Its amazing ,,Your guys started when surpluses were predicted "as far as the eye could see" ,,One year of GW and we went to "deficits don`t matter",, Then Chen ey`s secret "energy meeting" (remmber "Kenny boy Lay" ?) followed by Hall iburtons no bid contracts after a lie to WAR !!! ,I can go on for hours,,To now see you all foaming at the mouth over a comparitive molecule in the bucket for a green cause is bizarre,, But par for the course,,How do u guys seriously look in the mirror ?
HUFFPOST SUPER USER
carleronn
Former bond trader
09:27 PM on 11/28/2011
What's the problem. This guy obvioously knows the Solndra business since he helped with the original loan request in '08. Who better to lead the investigation? At least he won't have to be brought up to speed on the industry or the business model
jer45
Former reporter/local government official blogging
09:09 PM on 11/28/2011
Ooops. There goes the talking point.
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TygerLilly
ProgLib deprogramming ,555 GOT TRUTH?
09:25 PM on 11/28/2011
Wrong.
09:05 PM on 11/28/2011
The revolving door between big business and government really should be plugged. These people aren't serving us, they're serving the corporations that will hire them tomorrow.
This user has chosen to opt out of the Badges program
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09:05 PM on 11/28/2011
Solyndra was a company that Obama himself touted as effective government economics. And they lost a bundle of money. Period.
10:42 PM on 11/28/2011
You seem to forget that the loan was submitted and took three years to get approval. It was fast tracked by the Bush admin and was actually going to be approved. The same committee that sent it back for review three months later approved it after it was redone so that if the company went belly up the loan money would be recouped.

The company also prior to the loan got over a 100 million in investments from the Walton family and other Republican sponsors. The CEO and many investors in Solyndra are Republicans.

The Obama admin loan btw makes the assets of Solyndra such as the completed factory and equipment sell able so the company's assets are worth more then the debts so the factory and equipment when sold well the loan money will be recouped whereas the Bush admin loan deal would have resulted in nothing being recouped.

The Solyndra loan is about 1 percent of the money in the DOE loan program aimed at green power. FYI most loans in the program have been paid back with a tidy profit or the loans are being used to build multibillion dollar power plants that have already contracted to sell the power that will be generated. So eventually those loans will be paid back with some tidy profit.
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GravitonX
10^300 bosons could care less.
09:03 PM on 11/28/2011
Do Republicans so hate their country that they are willing to sacrifice America's position in this critical technology just to get at Obama?

You do realize that the Chinese are laughing at you hand-wringiing over a tiny investment in a technology they very much intend to dominate.
HUFFPOST SUPER USER
Pizza4dinner
Too smart to be Progressive
09:08 PM on 11/28/2011
Progressives hate America, not most Republicans. It is easy to tell who hates America because they support those that want to "fundamentally transform America.
06:22 AM on 11/29/2011
Instead you want to 'take the country back'. Yeah, back to the 1800's.
HUFFPOST SUPER USER
carleronn
Former bond trader
09:28 PM on 11/28/2011
Critical industry??? Until it can survive without handouts it is not an indusrtry but a mere welfare recipient
10:44 PM on 11/28/2011
The oil industry must be the biggest welfare queen in the world according to the logic you are displaying. Since the oil industry gets hundreds of billions in handouts each year.

Same with nuclear power.
No nuclear power in the world can be built without a gov't paying for it. No power company wants to build a nuclear power plant unless the local gov't foots the cost. They are not insured nor does the power company able to make a profit unless the gov't gives the power company a massive handout.
10:55 PM on 11/28/2011
We have to subsidize green energy,,do­nt tell me about free markets and "picking winners" You could combine all other govt. industry subsidies or "investmen­­ts" and you`d end up with a microfract­­ion of the tax + blood $$$TRILLIONS for military defense $pending to secure and protect the oil reserves of the Mideast and elsewhere for 120 yrs.. AMERICAN tax $$$ and AMERICAN BLOOD enabled the OILGARCHS,­­American and foreign to become what they are, Our reward? Many of those same oilgarchs now use their tax free profits to corrupt our govt, dictate, distort energy policy,con­­trol media and other negative behaviors too long to list,
I cant overstate that all have benefitted greatly from the energy that was provided, And many in the Oil industry and soldiers gave their lives for that oil. I can`t fathom how its true cost could be reflected at the pump . I do know we pay 17 cents/gal fed tax (for roads) a microfract­ion of the cost on this investment­­/subsidy,
,A million solyandras bailouts would`nt equal whats been given to OILGARCHS , As Liz Warren so aptly stated "no one got rich on their own",, There`s no greater example than the oil industry.
Oil is a very PRECIOUS, EXPENSIVE commodity.­­It`s insanity to Fed tax a gal/gas $.17. If any Cons want to talk free markets ,,big govt,,I am all ears ,,Include environmen­tal costs and Homeland Security