Dem Stimulus Bets Put Green Companies in the Red
Dem Stimulus Bets Put Green Companies in the Red
Stimulus Funds Purchased Chinese Solar Panels and Helped Undermine U.S. Solar Companies That the Stimulus Was Supposed to Help
· A report out last week showcased how Democrats used stimulus dollars to purchase solar panels from Chinese companies, just the latest example of how Democrats’ actions contributed to the demise of the “green jobs” they claimed to help.
· In fact, the Democrats’ record of stimulus loans is a trail of disaster, with one stimulus-funded company going bankrupt after another.
· The sad truth is that Democrats remain unapologetic for their irresponsible bets with taxpayer dollars and want to double down with more of the same.
A report out last week showcased how Democrats used stimulus dollars to purchase solar panels from Chinese companies, just the latest example of how Democrats’ actions contributed to the demise of the “green jobs” they claimed to help:
OBAMA OFFICIALS BROKE STIMULUS LAW PROVISIONS AND PURCHASED CHINESE SOLAR PANELS: “Government officials blame unfair competition from China for the collapse of solar panel manufacturer Solyndra, but such concerns didn’t stop the federal government from breaking stimulus program rules to use Chinese solar panels atop a federal building housing the offices of a senator, congressman and several agencies.” (Jim McElhatton, “Feds Ignore Rules And Use Stimulus Cash To Buy Chinese Solar Panels,” The Washington Times, 9/17/12)
$200,000 TAXPAYER FUNDED STIMULUS DOLLARS WENT TO CHINA FOR THE PROJECT: (Jim McElhatton, “Feds Ignore Rules And Use Stimulus Cash To Buy Chinese Solar Panels,” The Washington Times, 9/17/12)
BUT IT WASN’T AN ACCIDENT—CONTRACTOR FOR THE PROJECT QUESTIONED IF PANELS WERE AGAINST THE “BUY AMERICAN” PROVISIONS: (Jim McElhatton, “Feds Ignore Rules And Use Stimulus Cash To Buy Chinese Solar Panels,” The Washington Times, 9/17/12)
EVEN THE INSPECTOR GENERAL SAID PANELS COULDN’T BE PURCHASED: “Still, the inspector general’s memo stated that the panels violated the provisions of the stimulus program, according to the memo. ‘The photovoltaic panels installed were assembled in and shipped from China,’ the memo stated. ‘Under the ARRA, the Chinese panels cannot be purchased with ARRA funds.’” (Jim McElhatton, “Feds Ignore Rules And Use Stimulus Cash To Buy Chinese Solar Panels,” The Washington Times, 9/17/12)
ADMINISTRATION OFFICIALS TOLD THEM TO CONTINUE BUYING THE CHINESE PANELS ANYWAY: “The contractor on the Illinois building project, J.R. Conkey & Associates, initially questioned GSA officials on whether solar panels assembled in China could be used under the stimulus program, but a procurement officer told the company to proceed, according to records …’Here, the panels themselves are not a contract item’ the service’s [GSA’s] response stated.’”(Jim McElhatton, “Feds Ignore Rules And Use Stimulus Cash To Buy Chinese Solar Panels,” The Washington Times, 9/17/12)
GREEN ENERGY WAS HURT BY SOLYNDRA-TYPE LOANS:
“RATINGS AGENCIES FULLY INFORMED THE DOE” OF RISKS OF “EXCESSIVE GLOBAL COMPETITION”: “The ratings agencies fully informed the DOE of their expectations for falling panel prices due to excessive global competition.” (“The Department of Energy’s Disastrous Management of Loan Guarantee Program,” U.S. House of Representatives Committee on Oversight and Government Reform, 3/20/2012)
DOE SPENT TAXPAYER DOLLARS BACKING “MULTIPLE SOLAR” COMPANIES AND “ADDED TO A HEATED GLOBAL COMPETITION” THAT WAS “ALREADY CREATING AN EXCESSIVE SUPPLY OF SOLAR PANELS”: “DOE should have averted some of the risks it created in its portfolio by diversifying its investments across renewable energy technologies. DOE’s investment in multiple solar manufacturers added to a heated global competition that was already creating an excessive supply of solar panels. These manufacturers were forced to compete both against each other and other solar companies worldwide. As a result, the average selling price per watt for solar panels has continued its decline.” (“The Department of Energy’s Disastrous Management of Loan Guarantee Program,” U.S. House of Representatives Committee on Oversight and Government Reform, 3/20/2012)
“APPARENT CURE TO THE OVERSUPPLY IS THE OUTRIGHT SHUTTERING OF A LARGE SHARE OF SOLAR PANEL MANUFACTURERS”—SUBSIDIZED BY TAXPAYERS: (“The Department of Energy’s Disastrous Management of Loan Guarantee Program,” U.S. House of Representatives Committee on Oversight and Government Reform, 3/20/2012)
In fact, the Democrats’ record of stimulus loans is a trail of disaster, with one stimulus-funded company going bankrupt after another:
THE ATLANTIC: “ANOTHER SOLYNDRA IN THE MAKING?”: (Jordan Weissman, “Another Solyndra in the Making?”, The Atlantic, 7/9/2012)
A123 SYSTEMS RECEIVED $249 MILLION STIMULUS LOAN GRANT, NOW HAS ONLY FIVE MONTHS OF CASH LEFT: “On Friday, advanced battery maker A123 Systems, the recipient of a $249 million federal stimulus grant, informed investors that it had just five months worth of cash left to fund itself. While it’s a bit early to start administering last rites, the company’s situation is looking pretty funereal. A123′s share price is down to just about $1 from an all-time high of more than $25 in 2009. Management has plans to raise $39 million, in part by selling stock. But at least one analyst quoted by the Boston Globe believes they’ll need an infusion of at least $400 million over the next 18-months.” (Jordan Weissman, “Another Solyndra in the Making?”, The Atlantic, 7/9/2012)
“ANOTHER SOLYNDRA? DOE LOAN RECIPIENT [ABOUND SOLAR] CLOSING”: (Andrew Restuccia, “Another Solyndra? DOE: Loan Recipient Closing,” Politico, 7/3/2012)
ABOUND SOLAR FILING FOR BANKRUPTCY AFTER GETTING $70 MILLION IN STIMULUS FUNDS: “A solar manufacturing company that received nearly $70 million from the Obama administration is shutting down and filing for bankruptcy protection, the Energy Department said Thursday.
“Abound Solar won approval in 2010 for a $400 million loan guarantee to aid construction of solar manufacturing facilities in Longmont, Colo., and Tipton, Ind. But amid growing problems for domestic solar panel manufacturers, the company began missing milestones laid out by the department in its loan guarantee agreement.” (Andrew Restuccia, “Another Solyndra? DOE: Loan Recipient Closing,” Politico, 7/3/2012)
“THE THIRD DOE-BACKED COMPANY TO DECLARE BANKRUPTCY”: “Abound is the third DOE-backed company to declare bankruptcy. The first was Solyndra last September. Beacon Power, an energy storage company, filed for bankruptcy protection the following month.” (Andrew Restuccia, “Another Solyndra? DOE: Loan Recipient Closing,” Politico, 7/3/2012)
BEACON POWER GOES BANKRUPT AFTER $43 MILLION OBAMA STIMULUS LOAN: (Tom Hals and Roberta Rampton, “Beacon Power Bankrupt; had U.S. backing like Solyndra,” Reuters, 10/31/2011)
OBAMA-BACKED AMONIX LAID OFF 200 WORKERS EARLY THIS YEAR, RECEIVED $5.9 MILLION TAX CREDIT IN 2010: (Neil Munro, “More Solyndra-Style Failure: Obama-tied Amonix Lays Off Most of Company,” The Daily Caller, 1/30/2012)
BRIGHTSOURCE ENERGY GOT $1.6 BILLION LOAN GUARANTEE, NOW FACING FINANCIAL STRUGGLES AFTER CANCELLING ITS IPO: (Dana Hull, “BrightSource Shelves IPO, Walks Away from Public Markets,” The San Jose Mercury News, 4/18/2012)
QUESTIONS OF CRONY CAPITALISM:
OBAMA’S DOE LENT $14.5 BILLION OVER 27 PROJECTS, “TURNED A BLIND EYE TO THE RISKS THAT HAVE BEEN GLARINGLY APPARENT”: “By the expiration of § 1705 program in September 2011, the DOE had approved 27 projects totaling more than $14.5 billion in guaranteed loans. Inexplicably, DOE management has turned a blind eye to the risks that have been glaringly apparent since the inception of the program.” (“The Department of Energy’s Disastrous Management of Loan Guarantee Program,” U.S. House of Representatives Committee on Oversight and Government Reform, 3/20/2012)
“REPORT: ENERGY LOANS COULD COST $3B” FROM “HIGH-RISK” GREEN PROGRAMS: (“Report: Energy Loans Could Cost $3B,” Associated Press, 2/10/2012)
STIMULUS CRONY CAPITALISM? WASHINGTON POST AUDIT FOUND $3.9 BILLION IN TAXPAYER MONEY WENT TO “21 COMPANIES WITH CONNECTIONS TO FIVE OBAMA ADMINISTRATION STAFFERS AND ADVISERS”: “During the next three years, the department provided $2.4 billion in public funding to clean-energy companies in which Wagle’s former firm, Vantage Point Venture Partners, had invested, a Washington Post analysis found. Overall, the Post found that $3.9 billion in federal grants and financing flowed to 21 companies backed by firms with connections to five Obama administration staffers and advisers.” (Carol Leonnig and Joe Stephens, “Venture Capitalists Play Key Role in Obama’s Energy Department,” The Washington Post, 2/14/2012)
The sad truth is that Democrats remain unapologetic for their irresponsible bets with taxpayer dollars and want to double down with more of the same:
ENERGY AND COMMERCE RANKING DEMOCRAT HENRY WAXMAN (D-CA): SORRY I’M NOT SORRY ABOUT FUNDING SOLYNDRA: “I’m sorry Solyndra happened. We lost $500 million dollars. That’s a shame, but that’s why loan guarantees are provided. Because these are risky enterprises, and not all of them are going to succeed.” (Remarks from Henry Waxman, Energy and Commerce Hearing, 7/12/2012)
STIMULUS LOAN CHIEF: PROGRAM THAT FUNDED SOLYNDRA IS “AN ENORMOUS SUCCESS”: “Loan Chief Frantz: ‘Quite to the contrary, sir, I think it’s been an enormous success.’” (House Energy and Commerce Hearing, 7/12/2012)
OBAMA SAID STIMULUS WAS INTENDED TO “TAKE BETS” ON NOW-BANKRUPT COMPANIES LIKE SOLYNDRA: “But that’s exactly what the loan guarantee program was designed by Congress to do, was to take bets on these areas where we need to make sure that we’re maintaining our lead.” (“News Conference by the President,” The White House, 10/6/2011)
DEMOCRATS MAKING NO APOLOGIES FOR SOLYNDRA LOAN THAT LOST $535 MILLION IN TAXPAYER FUNDS: “Energy Secretary Steven Chu on Thursday declined an opportunity to issue a direct apology for Solyndra.” (Darren Samuelsohn, “Steven Chu: No Apologies on Solyndra,” Politico, 11/17/2011)
Dem Stimulus Bets Put Green Companies in the Red http://ow.ly/dVJmG