Dive Brief:

• SolarCity and the New York Public Service Commission have received subpoenas from the U.S. Attorney's office related to an investigation of lobbying and conflicts of interest in state construction projects, NewsDay reports.
• In April, Southern District U.S. Attorney Preet Bharara sent subpoenas to the company, the regulatory body, Gov. Andrew Cuomo's office and other state agencies as a part of an investigation into how construction contracts are awarded in the state's Buffalo Billion initiative designed to attract employment and bolster investment.
• The construction of SolarCity's GigaFactory is a centerpiece of the investigation, but the installer told NewsDay that it is "not the subject or focus of the investigation."

Dive Insight:

SolarCity was not involved in selecting a contractor or vendors for the Gigafactory, and so the company is tangential to the investigation, a spokesperson told NewsDay. 

The factory, located in upstate New York, will ultimately produce 1 GW of panels every year and is expected online next year. It is a centerpiece of the Buffalo Billion initiative, aiming to draw clean energy jobs and accelerate installation of panels as the state works towards aggressive renewables goals.

SolarCity Spokeswoman Kady Cooper told NewsDay it was “premature to speculate on any impact the investigation might have on the project timeline."

A number of state agencies involved in the state's effort to reform the electrical system — the REV Initiative — were also handed subpoenas. Along with Cuomo's office and the PSC's Department of Public Service, the state economic development agency, the State University of New York Polytechnic Institute and the New York State Energy Research & Development Authority were also tapped in the case.

Competitive Power Ventures, also known for its development of a controversial gas plant in Maryland, was also sent a subpoena.

Alphonso David, counsel for Gov. Andrew Cuomo, issued a statement acknowledging the investigation "has recently raised questions of improper lobbying and undisclosed conflicts of interest by some individuals which may have deceived state employees involved in the respective programs and may have defrauded the state."

We take violations of the public trust seriously and we believe these issues must be resolved," David said.

Cuomo ordered a full review of the program, and David added that "any grants made by this program will be thoroughly scrutinized – past, current or future."

The governor's review is being led by Bart Schwartz, who previously headed the Criminal Division of the U.S. Attorney’s office for the Southern District of New York.