Back in November the Department of Energy boasted that its loan program for renewable energy technologies and “advanced” (mostly electric) vehicles had achieved a positive balance, which many in the media lapped up after so many failures such as Solyndra.
But now that the Government Accountability Office has revealed in a detailed study that the true cost of the loan program to taxpayers is $2.2 billion – plus administrative expenses – journalists are nowhere to be found. As for DOE, they still stick to their story.
The GAO explained that the staggering sum reflects the “credit subsidy cost” of the loans and loan guarantees in the portfolios of Loan Guarantee Program and the Advanced Technology Vehicles Manufacturing program, which now have been combined. The credit subsidy cost is defined by GAO as “the net present value of the difference between projected cash flows to and from the government over the …
Fisker Automotive declared bankruptcy last week, inspiring the eternally optimistic Obama Department of Energy to crow about its achievements again.
“Recognizing that these investments would include some risk, Congress established a loan loss reserve for the program, and the Energy Department built in strong safeguards to protect the taxpayer if companies could not meet their obligations,” Bill Gibbons, an agency spokesman, said in an e-mail to Bloomberg News. “Because of these actions…the Energy Department has protected nearly three-quarters of our original commitment to Fisker Automotive.”
Leave to the Obama administration hucksters to sell yet another green energy loser as a gain for the taxpayers. With this bankruptcy, it’s a $139 million loss that DOE gets to spin. The stellar defenders of the public purse originally thought Fisker was worth a $529 million risk, but quickly recognized that mistake and stopped paying at $193 million. Ever since it’s been a …
It may be the height of irony that a company that was supposed to soar to the top of the new clean energy economy, with the help of U.S. taxpayers to undergird President Obama’s stimulus visions, has instead left both an environmental and financial mess after its demise.
Yet that’s exactly the case with miserable failure Abound Solar, which the president’s Department of Energy thought so much of, they awarded it a $400 million loan guarantee. That proposition quickly soured and the government halted payouts after about $70 million. The company went bankrupt in June 2012, leaving taxpayers out between $40 million and $60 million that was never recovered.
There was other collateral damage, not the least of which was a huge toxic mess from unused panels and abandoned chemicals at Abound’s former facilities. The environmental nightmare was discovered earlier this year, but this month – thanks to …
Ecotality declared Chapter 11 bankruptcy on Monday.
Compared to other Recovery Act beneficiaries that have failed – like battery maker A123 Systems and electric auto company Fisker Automotive – the deathwatch was short. A July 25th report issued by the Department of Energy’s Inspector General declared Ecotality’s EV Project largely a waste of time and misallocated money.
Then in mid-August Ecotality informed the Securities and Exchange Commission it was in deep financial trouble, with bankruptcy a possibility. A filing showed that the company was unable to obtain additional financing and the DOE had ceased payments to it for the EV Project until the agency could investigate further. DOE also warned Ecotality to not incur any new costs or obligations under the EV Project.
NLPC first raised questions about Ecotality’s viability and origins in October 2011.
Monday’s development is another black eye to President Obama’s green energy agenda, but …
A hearing of the House Committee on Oversight and Government Reform last week investigated the Obama administration’s practice of concealing email communications, with former top officials getting grilled about their use of private Internet accounts to conduct government business.
Two of the most egregious offenders were subject to withering scrutiny, although it didn’t last long enough to get very deep. Lisa Jackson, the former EPA Administrator whose FOIA-evadable email address was under the alias “Richard Windsor” – named in part for her dog – was questioned about a message sent to Siemens vice president Alison Taylor in which she asked her to “use my home email rather than this one when you need to contact me directly….”
Jackson, of course, said it was perfectly normal to direct a corporation official that she regulates to communicate with her via methods for which the public has no access. Marlo Lewis of …
So here’s the legacy left in Weld County, Colorado by bankrupt Abound Solar, the crony capitalist-influenced Department of Energy, and Democrat donor/investor/billionaire-ette Pat Stryker: A financially-screwed county government, hundreds who have lost their jobs, and a big, expensive toxic mess to clean up.
But it’s no skin off the jet-setting heiress’s nose as she continues to pour millions into hard-left causes, while the locals affected by the closure struggle.
Commissioners in the sprawling region on the Centennial State’s northern border with Wyoming threw in the towel this week on the hope they could recover much more than a pittance on the $1.8 million they are owed from the bankrupt stimulus beneficiary. The county – which scrambled for over a year to close its Abound budget hole – on Wednesday night agreed to accept a $100,000 settlement. The bumbling bureaucrats at DOE, who found Abound worthy of a …
As the Department of Energy seized the last of Fisker Automotive’s reserves in lieu of an unknown amount that it was due to repay this week, what’s left of the lame electric automaker clings to the slim hope it can survive.
While CEO Tony Posawatz and his team may need an intervention, a hearing before the House Oversight and Government Reform Committee yesterday revealed that DOE and committee Democrats (as well as those in the Obama administration) are hopelessly stuck in an alternate universe, where losing millions of taxpayer dollars is considered a good record. Republicans had called officials from the company – including founder Henrik Fisker, as well as administrators of DOE’s loan program – to explain the logic that went into granting $529 million to a fledgling, unproven car company that targets an ultra-rich clientele.
Democrats attempted to dismiss the hearing as a “show trial” to …
President Obama’s alternative energy “stimulus,” administered through his Department of Energy by previous Secretary Steven Chu, had already become a joke because of the failures and foibles of so many recipients of Recovery Act funds. But now – as though officially commemorating the absurdity of this historically bad U.S. government program – one of its bankrupt beneficiaries has changed its name from one of simplicity to one of mockery.
Electric vehicle battery maker A123 Systems has changed its name to B456 Systems. Incorporated.
Reporting the development, headline writers across the nation rubbed their eyes, double-checked the wire information, and then – especially realizing how close they were to April Fool’s Day – had to add extra assurance to the breaking news.
For the Boston Herald, where A123 was headquartered near MIT, it was this:
“A123 Systems changes name to B456 (seriously)”
The Milwaukee …
The publicity surrounding President Obama’s failed strategy to stimulate the economy, by putting clueless manager Steven Chu in charge of the Department of Energy’s lending activities, has become so bad that few “green energy economy” entrepreneurs want to accept taxpayer money any more.
That’s according to a report published earlier this month by the Government Accountability Office, which reviewed DOE’s loan programs for a briefing to both the House and Senate’s Appropriations subcommittees on Energy. Amusingly though, the Web site of DOE’s Loan Programs Office still calls itself “The Financing Force Behind America’s Clean Energy Economy.” The minor blip that undermines that premise is that DOE is having trouble getting someone to borrow $55 billion.
GAO’s director for Natural Resources and Environment, Frank Rusco, undertook an audit/investigation that evaluated three types of DOE loans: the 1703, 1705, and Advanced Technology Vehicles Manufacturing programs. The 1705 program backed …
And the environmental pressure groups wanted you to believe solar energy was “clean” and “green.”
If that’s true, then why do we keep hearing the words “toxic” and “hazardous” connected with the production of solar panels – especially with the companies that fail?
The latest example of phony eco-purity is Abound Solar, which declared bankruptcy last summer after it had received $70 million of a $400 million Department of Energy stimulus loan guarantee. According to news reports from Colorado, where Abound was based, the state Department of Public Health and Environment found 2,000 pallets of solar panels that couldn’t be sold and therefore were identified as toxic.
“At the time of the inspection these 2,000 pallets of solar panels were deemed unsellable and a viable agreement for reclamation of the solar panels was not evident. Therefore, the department views these 2,000 pallets of solar panels as a characteristic hazardous …