Energy Secretary Jennifer Granholm is under investigation by Senator John Barrasso (R-WY) regarding the involvement of Ford's chief lobbyist, Chris Smith, in securing a substantial Department of Energy (DOE) loan for the automaker. Barrasso's inquiry centers on Smith's appointment to Granholm's executive advisory board just months before the DOE granted Ford a $9.2 billion loan for electric vehicle manufacturing plants.

The Senator's letter to Granholm raises concerns about a potential conflict of interest, given Smith's position at Ford and his simultaneous role advising the Energy Secretary. Barrasso argues that the timing of the loan, following Smith's appointment to the advisory board, creates at least the appearance of undue influence. He emphasizes the need for impartiality and competitive practices in allocating taxpayer funds, particularly with such a significant sum involved.

Granholm had previously stated that Smith and other board members would contribute to the agency's clean energy transition goals. Smith's biography on the DOE website highlights his role in influencing legislation and policy related to electric vehicles and other areas. He also previously served in the DOE during the Obama administration.

The $9.2 billion loan, announced by the DOE's Loan Programs Office, is intended to support the construction of three battery manufacturing plants. These facilities will produce batteries for upcoming Ford and Lincoln electric vehicles. The DOE maintains that its loan selection process is impartial and adheres to the highest standards of integrity.

Barrasso's letter also mentions Granholm's recent disclosure regarding her husband's ownership of Ford stock, which she had not previously revealed during Senate testimony. Granholm has since stated that these shares were sold. This investigation raises questions about the transparency and ethical considerations surrounding government loans and potential conflicts of interest.