U.S. President Barack Obama tours the Solyndra solar panel company with Solyndra executive vice president Ben Bierman (L) and Comapny CEO Chris Gronet (R) in Fremont, California on May 26, 2010. UPI/Paul Chinn/Pool | License Photo

WASHINGTON, Aug. 2 (UPI) -- Legislation that would phase out U.S. federal loans for solar energy programs is in line with steps needed to address fiscal challenges, a lawmaker said.

The House Energy and Commerce Committee advanced legislation that would terminate a federal loan program for solar energy development in the United States.


U.S. Rep. Fred Upton, R-Mich., chairman of the committee, described the measure as a budget-saving initiative.

"This bill recognizes both our current fiscal challenges and our understanding that the federal government is ill-suited to be gambling the taxpayers' dollars with this sort of company-specific investment," he said in a statement.

House leaders have taken issue with a $535 million federal loan guarantee offered to solar panel company Solyndra, which filed for bankruptcy protection in 2010.

U.S. President Barack Obama touted Solyndra as a centerpiece of his green economic agenda, though the initial loan was vetted by the administration of George W. Bush.