Democrats Make No Apologies for Solyndra

Dems Make No Apologies for Solyndra

Democrats’ Stimulus Spending on Companies Like Solyndra Has Wasted Millions of Taxpayer Dollarsand Hurt Green Energy, But Democrats Want More of the Same 

• Today’s House vote on the No More Solyndras Act is likely to be another reminder that Democrats are unapologetic about their failed investment in the now-bankrupt solar company.

• Sadly Solyndra was just the beginning in a long-line of crony capitalist investments for which taxpayer dollars were used to benefit Democrat donors.

• Worse yet, the Democrats’ loans to failed companies like Solyndra wasted taxpayer dollars on frivolous projects and actually hurt green energy jobs instead of helping create them.

Today’s House vote on the No More Solyndras Act is likely to be another reminder that Democrats are unapologetic about their failed investment in the now-bankrupt solar company:

HOUSE TO VOTE ON NO MORE SOLYNDRAS ACT FRIDAY: (Zack Colman, “The Week Ahead: ‘House to Vote on No More Solyndras,” The Hill, 9/10/2012)

TAXPAYERS UNLIKELY TO RECEIVE THE $528 MILLION OWED TO THEM BY SOLYNDRA: (Jim McElhatton, “Solyndra Investors Could Reap Tax Windfall,” The Washington Times, 8/29/2012)

PRICE TAG FOR FAILED STIMULUS: $833 BILLION: (Congressional Budget Office, 8/23/2012)

DEMOCRATS HAVE REFUSED TO APOLOGIZE FOR THEIR SOLYNDRA DISASTER:

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) 

Sadly Solyndra was just the beginning in a long-line of crony capitalist investments for which taxpayer dollars were used to benefit Democrat donors:

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)

Worse yet, the Democrats’ loans to failed companies like Solyndra wasted taxpayer dollars on frivolous projects and actually hurt green energy jobs instead of helping create them:

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)

AND TOO OFTEN, SOLYNDRA LOAN BENEFICIARIES WASTED TAXPAYER DOLLARS ON FRIVOLOUS PROJECTS:

BRIGHTSOURCE ENERGY HAS SPENT $56 MILLION ON “DESERT TORTOISE RELOCATION”:  (“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) 

BEACON POWER DISHED OUT MORE THAN A QUARTER-MILLION DOLLARS IN BONUSES TO TOP EXECUTIVES BEFORE GOING BANKRUPT:  (“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)

SOLYNDRA FACTORY WAS COMPARED TO “THE TAJ MAHAL” BY STAFF: “‘The new building is like the Taj Mahal,’ John Pierce, a facilities manager at Solyndra, told the paper.” (Sajid Farooq, “Solyndra Factory Had Disney-Singing Robots, Spas,” NBC Bay Area, 9/29/2011)

“SOLYNDRA FACTORY HAD DISNEY-SINGING ROBOTS, SPAS”: “Former employees told the San Francisco Chronicle that the $733 million, 300,000-square-foot factory built in 2009 had spa-like showers, robots that whistled Disney tunes and glass-walled conference rooms.” (Sajid Farooq, “Solyndra Factory Had Disney-Singing Robots, Spas,” NBC Bay Area, 9/29/2011)

SOLYNDRA CAUGHT ON TAPE DESTROYING MILLIONS OF DOLLARS OF ASSETS AFTER BANKRUPTCY: “After filing for bankruptcy last year, Fremont solar company Solyndra still owes American taxpayers half a billion dollars. But CBS 5 caught them destroying millions of dollars worth of parts. At Solyndra’s sprawling complex in Fremont, workers in white jumpsuits were unwrapping brand new glass tubes used in solar panels last week. They are the latest, most cutting-edge solar technology, and they are being thrown into dumpsters.” (“Bankrupt Solyndra Caught Destroying Brand New Parts,” CBS San Francisco, 1/19/2012)

“FORMER SOLYNDRA CEO GOT $467K SEVERANCE”: (Randall Chase, “Former Solyndra CEO Gets $456K Severance,” Associated Press, 11/2/2011)  

SOLYNDRA CEO NEGOTIATED SEVERANCE IN JULY 2011, TWO MONTHS BEFORE SOLYNDRA ANNOUNCED HIS FIRING: (Randall Chase, “Former Solyndra CEO Gets $456K Severance,” Associated Press, 11/2/2011)  

MORE THAN A DOZEN OTHER SOLYNDRA EXECUTIVES RECEIVED “HEFTY BONUSES” THIS SUMMER, JUST MONTHS BEFORE FILING FOR BANKRUPTCY: (Dana Hull, “Solyndra Executives Collected Hefty Bonuses in Months Before Fremont Company Filed for Bankruptcy,” San Jose Mercury News, 11/2/2011)

Democrats Make No Apologies for Solyndra http://ow.ly/dHefw