Lesson Not Learned: Solyndra Sibling Gets Stimulus Loan

September 26, 2012

Lesson Not Learned: Solyndra Sibling Gets Stimulus Loan

A Year After Stimulus Poster Child Solyndra Went Bankrupt, Democrats Are Getting Ready to Dish Taxpayer Funds to Another Solyndra Sibling

A year after Democrats’ stimulus poster child Solyndra went bankrupt, another company with several similarities to Solyndra is getting a taxpayer-funded loan.
It’s the latest sign that Democrats are entirely unapologetic for their failed bets with taxpayer money.
Too many of the Democrats’ risky, taxpayer-funded bets on green companies have already gone bust. How many more must fail before Democrats learn their lesson?

A year after Democrats’ stimulus poster child Solyndra went bankrupt, another company with several similarities to Solyndra is getting a taxpayer-funded loan:

“SOLYNDRA REDUX? SOLOPOWER ABOUT TO QUALIFY FOR FEDERAL LOAN GUARANTEES”: (Jim Jelter, “Solyndra Redux? Solopower About to Qualify for Federal Loan Guarantees,” MarketWatch, 9/24/2012)

SOLOPOWER SET TO RECEIVE MORE THAN $190 MILLION: (“Recipient Profile,” Recovery.gov, Accessed 9/25/2012)

“SEVERAL SIMILARITIES BETWEEN SOLOPOWER AND SOLYNDRA”: (Nichola Groom, “US Poised to Hand Over $197 Million To Another Solar Panel Start-Up,” Reuters, 9/24/2012)

SOLOPOWER AND SOLYNDRA USE SAME CORE MATERIALS, BOTH QUALIFY FOR STIMULUS LOAN PROGRAM: (Nichola Groom, “US Poised to Hand Over $197 Million To Another Solar Panel Start-Up,” Reuters, 9/24/2012)

SOLOPOWER FACES CUTTHROAT COMPETITION FROM CHINA, A MAJOR FACTOR IN SOLYNDRA’S DEMISE:(Nichola Groom, “US Poised to Hand Over $197 Million To Another Solar Panel Start-Up,” Reuters, 9/24/2012)

DEM’ GREEN SPENDING SPREE COULD ACTUALLY BE HURTING COMPANIES LIKE SOLOPOWER WHILE KEEPING TAXPAYERS ON THE HOOK:

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)

It’s the latest sign that Democrats are entirely unapologetic for their failed bets with taxpayer money:

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)

Too many of the Democrats’ risky, taxpayer-funded bets on green companies have already gone bust. How many more must fail before Democrats learn their lesson?:

A LONG RECORD OF FAILURE:

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)

SOLYNDRA INVESTORS STILL REAPING WINDFALL: WILL BE ABLE TO USE SOLYNDRA LOSSES TO AVOID TAXES ON FUTURE INCOME COMPLETELY UNRELATED TO THEIR FAILED SOLYNDRA INVESTMENTS: “It will, however, hold ‘tax attributes’ consisting of more than one-half billion dollars in net operating losses,” the government filing states. “The equity holders … may then, assuming they meet the other requirements of the Internal Revenue Code, use those net operating losses to reduce their income tax liabilities on income earned from other sources completely unrelated to Solyndra.” (Jim McElhatton, “Solyndra Investors Could Reap Tax Windfall,” The Washington Times, 8/29/2012)

SPECIAL DEAL ALLOWED INVESTORS TO BE PAID BACK BEFORE TAXPAYERS IN CASE OF DEFAULT: (Jim McElhatton, “Solyndra Investors Could Reap Tax Windfall,” The Washington Times, 8/29/2012)

FLASHBACK: SOLYNDRA INVESTOR: “WHILE THAT’S GOOD FOR US, I CAN’T IMAGINE IT’S A GOOD WAY FOR THE GOVERNMENT TO USE TAXPAYER MONEY”: “But privately, at least one investor was concerned, writing in an email that while Solyndra won a loan of more than $500 million, it had revenues of less than $100 million and wasn’t yet profitable: ‘… while that’s good for us, I can’t imagine it’s a good way for the government to use taxpayer money…’” (Jim McElhatton, “Emails: Solyndra Took Sales Pitch Directly to Obama,” The Washington Times, 8/2/2012)

Lesson Not Learned: Solyndra Sibling Gets Stimulus Loan http://ow.ly/dZsz4