Solyndra ‘Just the Tip of the Iceberg’: New Obama Solar Loan Links
A House Oversight and Government Reform subcommittee dug further into the $90 billion directed toward green-energy initiatives in President Obama’s 2009 stimulus, noting questions not only about whether the programs have wasted taxpayer money but whether the White House pulled strings for some firms.
“When taxpayers lost over a half-billion dollars on Solyndra, the Obama Administration said that it was just one bad apple and that the rest of the portfolio was strong,” said subcommittee chairman Jim Jordan (R-Ohio). “It is becoming increasingly clear that Solyndra was just the tip of the iceberg in a sea of taxpayer risk.”
The Regulatory Affairs hearing was made even better by the chairman of the full committee, Rep. Darrell Issa (R-Calif.), dropping in to question the six CEOs of alternative-energy companies lined up at the witness table.
Four of those companies together received $5 billion in loan guarantees from the Department of Energy.
“Alternative energy certainly has a place in our economy and we hope that all of these companies succeed,” Jordan said. “But the best way to get cheap energy to American consumers is to let market forces work, not allow bureaucrats in Washington to pick winners and losers through a politicized process.”
Ranking Member Dennis Kucinich (D-Ohio) quipped that Republicans hadn’t raised questions “over the last 100 years” for fossil fuel subsidies, and lamented that they had devoted four hearings to scrutinizing the green-energy loans.
“If we fail to support these renewable energy technologies our country will fall behind countries like Germany and China,” Kucinich said. “I think we should be helping to preserve America’s leadership.”
One witness who didn’t ask for any DOE money, James B. Nelson, described the work of his Santa Barbara company Solar3D, Inc., which is developing an advanced technology cell that could cut the cost of solar energy in half.
“Our objective is similar to that of ill-fated Solyndra — to develop a new solar technology that can change the economics of the industry. However, our manner of execution is very different,” Nelson told the committee.
“We have been supported by private investment in our company since its establishment in August of 2010,” he said. “We are not depending or dependent on government funding. We certainly do not expect that such support will be necessary to facilitate the commercialization of our new technology.”
Jordan noted that Nelson “didn’t come ask for help and his company is succeeding and we applaud that.”
Nelson, saying that he didn’t see the loan recipients as having a competitive advantage over private-investment companies such as his, said he didn’t blame the other witnesses for taking advantage of the taxpayer cash.
“The problem is not in their approach,” the CEO said. “The problem is in the rules.”
And agreeing that “we shouldn’t have had this goofy program going on in the first place,” Jordan and his colleagues went after those loans.
In the 30,000 documents given to the committee on Friday, Jordan highlighted for BrightSource Energy Inc. CEO John Woolard an email in which it appears that the White House may have given a boost to the firm in its quest for financing.
In January 2010, Woolard emailed Matt Rogers, then senior adviser to the secretary of Energy for the Recovery Act, stating that Peter Darbee, then CEO and chairman of Pacific Gas and Electric, “talked directly to Obama about the program’s challenges and the bad situation it puts him in.”
“They had a vested interest in getting this thing approved because you were providing them their required commitment for green power,” Jordan said when questioning Woolard about the email. “One month after this email, you got the conditional approval.”
Woolard said he believed the approval was based “completely on the merits of the project.”
Please keep on this story and expose the cronyism. There’s a reason I come here for news and not CNN.
I agree, this scandal is hot — in fact it is one of the biggest of the Obama presidency –– cronyism and corruption are the driving force behind the tens of billions of DOE green-energy money (loans, grants, etc.) –– the majority going to President Obama and Democrat “friends.”
Besides 85% of the DOE “Junk loans” going to Obama and Democrat cronies….
At least six groups and individuals that helped “craft” the energy sector of the 2009 stimulus (Obama’s Green Stimulus Authors)
At least ten, with more on my radar from Obama’s Green Team, DOE Officials and DOE Advisers
At least ten from Obama’s 2008 Finance Committee
2008 Obama Bundlers, Top Donors, and Supporters –– could easily top 30…
At least five members of Obama’s Job Council (four of which are confirmed 2008 Obama donors and supporters)
Wall Street, Big Energy and Big Oil, and Big Green VC’s in the mix –– Top 2008 Obama Donors like Goldman Sachs, Google, Citigroup, General Electric, Morgan Stanley, Lehman Brothers, Bank of America/Merrill Lynch, BP, and Excelon Corp. Plus, Al Gore and John Doerr’s Kleiner Perkins, Steve Westly’s Westly Group, VantagePoint Ventures, James A. Johnson and Perseus, and more to be named…
And plenty of Democrat Allies in the mix
The Keynesian adventure of taking on debt and spending money to create more jobs resulting in more revenue to pay back the debt doesn’t work Libs, especially when it goes into a select few pockets. Those who question authority will be reprimanded.
Sometimes I feel Like I am living in Argentina again.
“…not allow bureaucrats in Washington to pick winners and losers through a politicized process.”
People who could not find their own ass with a map, a flashlight, and a native guide.
Yeah, but they can sniff out a campaign contribution a continent away.
Great article, Bridget, you’re a valuable addition to PJM.
I agree with Mulvaney (R-S.C.). As someone in the private sector, I’m far past “sick of it.” Let green energy compete in a free market on merit. No babying, no bailouts, no sweet loan deals, no taxpayer dollars.
The only way to get rid of corporate cronyism is to get rid of ALL corporate taxes. No taxes = no special tax BREAKS.
If we get rid of ALL income taxes we get rid of MOST of the ability of Congress to mess around with the economy.
In other words, the problem isn’t that Congress has used its tools badly, the problem is that they have the tools in the first place.
Fake science meets crony capitalism. Years ago, I had doubts when about the contention that environmentalism was at its root really about globalism and socialism. But, it occurred to me that the climate through its history has always been like any other natural system: it’s a wave form. Actually, a complex of wave forms. Earth has always been either warming or cooling. It has never had a stasis in temperature. The work done a few years back by those two scientists at Columbia U (of all places) probably drove the dagger through the heart of the Chicken Little industry. We’re a few years into the latest global cooling trend now, according to the scientific data, at least. Poor Al, it looks like things are cooling off for him and his buds at Kleiner Perkins Caulfield up on Sand Hill Road.
What they should do is cook up a new computer model.
What they should do is cook up a new computer model.
And that should make it show that the penultimate state before the globe is plunged into heat there will be a brief cooling period, a false sign.
>>I’m tired of people coming to the government as part of their business plan
Brilliant. I hope Romney starts getting into these specifics in his campaign. I’m kind of a broken record about how I respond to news these days. Every outrage I see makes me want to scream for exposure and justice.
Issa noted that BrightSource also had hosted a “Friends of Harry Reid” fundraiser at its corporate offices.
“Your company would not exist if it weren’t for loans or mandates,” Issa told Woolard.
And he would not hae received the loans or mandates if money off the top didn’t go to Friends of Harry Reid. Isn’t that the heart of this story?
It crap gets even thicker.
Bright Source was funded by Venture Capitol firm “Vantage Point Equity Partners” where enviro-grifter Robert Kennedy Jr. is a partner.
The VC geeks no doubt wished to leverage RFK Jr’s connections in DC along with his family name to get fungibles from the tax payers via stimulus dollars.
This is the liberal 1% helping the liberal `1%.
Occupy Oakland across the bay should be all over these “rich pig” types feeding at the government trough — “You got bailed out, We got sold out”.
Kennedy and these crony capitalist VC guys get a pass.
Rep. Mick Mulvaney (R-S.C.), a member of the Tea Party Caucus, went off on the execs for lobbying for mandates by which people would have to buy alternative energy products.
“When I was rolling burritos in a restaurant there was nothing that said people have to come to my restaurant and buy my product,” he said. “We’re not here because we don’t want you to be successful. …You have to be here today when you ask us to get involved in your business.”
“I’m tired of people coming to the government as part of their business plan,” Mulvaney continued. “As someone who came from the private sector, I’m sick of it. I wish you would compete on the merits.”
I have to say SC knows how to get good, common sense people to run for office and win.
I applaud Rep. Mulvaney as well! Also Issa. The whole Committee in general is doing fine work. The citizens are on a slow learning curve with the introduction of the ‘new media’ as well as the internet and are being educated. Ethics and integrity I feel will win out in the end. Electing representatives with these qualities and THEN monitoring them (which the new media makes somewhat easier) is crucial. The people’s attention has been focused now, and they are watching. I am optimistic about our wonderful Nation and its’ traditions and opportunities. Semper Fi.
Sen. Dianne Feinstein authored 2009/2010 amendment(s)to the California Desert Protection Act. Transmission line trenching, Mojave Wilderness Area land swaps and other assorted scams for patronage deals.
JFK of the Environmental Defense Fund wanted access to develop Mojave assets but DiFi was c**ckblocking JFK’s proxy egreen company and its insider deals.
Lots of money just begging to be milked from these scams and the internecine bickering over the spoils briefly spilled into the public arena. LA Times ran a few stories on this.
http://i45.tinypic.com/jfen9v.jpg
so when will the people wake up.
probably when obozo, loses and the poo hits the fan in the next administration.
And even when obozo’s hand prints will be on it, and senate controlled by reid, the press will want to blame either Bush or the new admin.
Don’t be shy, We The elite People of culture of corruption in Washington DC.
See, We The People know about this “flow-of-funds” Congress authorized. Below is a small sampling of the massive loss of an estimated $1.1 trillion dollars “shovel-ready” rat-holed…crony-capitalist, smarmy back room deals made with greedy, power hungry individuals who have since dissappeared from sight. Where’ a Congressional Investigation Committee “getting to the bottom of this?” HUH? Crickets.
Since March 2011 to March 2012, 26 enterprises directly or indirectly related to America’s renewable energy iniciatives have or are in the process of filing for bankruptcy. Some 45 coal fired electricity producing plants have been closed(off grid), with another 160 or so scheduled for closing by EPA in the not too distant future. Coupled to this EPA iniciative are some 5 or 6 coal mine closures with another 14 scheduled for closing this year. These numbers have devastated whole communities, increased unemployment and swelled the ranks of government welfare recipients. Nowhere is this, U-3 or U-6, unemployment number reported.
This is a comprehensive list of failed “Green” iniciatives by this administration, unreported, but very real. Cost to taxpayers: $1.1 trillion dollars.
March 2011 to March 2012.
Evergreen Solar, Solyndra, Luminant Energy, Ecotality, Raser Technologies, Nevada Geothermal Power, US Geothermal, Fisker Electronic Car Co., Tesla Electronic Car Co., Ameren Corp., Beacon Power Corp., General Motors, A123, Enerdel, Johnson Controls(Apterra Car Maker), Range Fuels(later bought by Lunatech, New Zealand + $7 million dollars in grants), TARP (bailed out 458 companies), Enerl Ind. And Enerdel, Amonix, Pathstone, First Energy Corp., Energy Conversion Devices (ECD), United Solar Ovonic, Abound Solar, Solar Trust of America, Solar Millinium (Germany). (May8, 2012) 5 N Plus closed their doors. $500,000 from Wisconsin taxpayers (laid off 12 employees).
If Congress has forgotten all the deals, names and companies, We The People will be happy to help them do their “due diligence.” Geez! And they’re each making $174k/year? What a joke! Joe the Plumber could ferret out these phony businesses. God Bless America.
Ranking Member Dennis Kucinich (D-Ohio) quipped that Republicans hadn’t raised questions “over the last 100 years” for fossil fuel subsidies, and lamented that they had devoted four hearings to scrutinizing the green-energy loans.
First we aren’t talking about direct loans that we will never get back. Alternative energy subsidies are way bigger than any oil subsidies and I’m not sure that what the left calls subsidies are not normal deductions like depreciation that all industries get.
This government has known for some time that it can STEAL taxpayer money and direct it anywhere it wants, right in the face of the US Public. It does not matter what trail of evidence there is, who knows what, where the money went, etc. There only oversight is an occasional bitching from one side on the other in the halls of congress. Otherwise there is no consequence to any criminality. They know that the working public is simply too stressed out and fearful of their own sustainability to take the time to do anything about it. And we also see that those few who work on exposing this government are ineffective and impotent. In other words, why bother? Why bother to even take another breath? I see no reason to go on, the best escape for me is to drop dead asap.
Not only is O big on funding green cronies directly, he has just slapped a 31% tariff on Chinese-made panels.
http://online.wsj.com/article/SB10001424052702303360504577410392432515760.html?mod=djemalertNEWS
Like Bridget Johnson’s title of this article states, “Just the Tip of Iceberg”. Here’s more, about how the CEO of First Solar, admitted dumping stocks to the Congressional Committee to his advantage:
http://www.humanevents.com/article.php?id=51551
Shameful.
Pull your head out Bridget. This was old news last year.
This isn’t “old news”, green energy profiteering is an ever-expanding scandal and the information regarding federal misuse of tax funds needs to be distributed far and wide.
I believe you misread the intent of my post #17. I don’t write so well. My bad.