Republican Senator Wants to Halt the Advanced Technology Vehicle Manufacturing Loan Program image

Republican senator John Thune proposed the elimination of the stalled government loan program aimed at fuel-efficient technology development.

The senator’s proposal comes a day after the US Energy Department announced it will put up for auction Fisker’s unpaid $168 million loan, even if this will mean a massive loss for taxpayers. Senator John Thune proposed the ending of the $25 billion Advanced Technology Vehicle Manufacturing loan program.

Thune said the amendment would “permanently end the ATVM program and save taxpayers from paying for more of President Obama’s bad green-energy bets.”

The program was created in 2007 by the Congress and not a single loan has been made since March 2011, despite the fact that it still has $16 billion unspent. In August, U.S. Energy Secretary Ernest Moniz told journalists that the agency might revise the lending conditions and seek a new round of loan requests.

The loan program attracted the Republicans’ criticism after two of the five companies which have received loans, stopped production. Tuesday, September 17th, the Energy Department announced it will put up for auction next month the $168 million outstanding loan in Fisker, which has stopped production in July 2012.

Source: The Detroit News