Department of Energy

Government Love for Failing A123 Systems Was Unconditional

A123 logoAs stimulus-funded ($249 million-plus) A123 Systems sees its stock price drop back near its all-time low and waits for a Chinese rescue, two Republican senators want answers about whether taxpayer dollars are again funding jobs and technology that will be transferred overseas.

Iowa Sen. Charles Grassley, the ranking minority member on the Judiciary Committee, and South Dakota Sen. John Thune queried A123 CEO David Vieau about the logistics of a proposed sale to China-based Wanxiang Group Corp. In August, just as the company reported another $82.9 million in second-quarter losses, a deal was announced in which Wanxiang would deliver $75 million in initial loans and then would buy $200 million of senior secured convertible notes, followed by a possible $175 million “through the exercise of warrants it would receive in connection with the bridge loan and convertible notes.” If fully consummated, the end result could mean A123 ends up 80 percent Chinese.

DOE Hiding Truth About Bankrupt Abound Solar's Defective Panels

Abound logoAs the now-bankrupt stimulus loan recipient Abound Solar filed for Chapter 7 (liquidation) bankruptcy in early July thanks largely to its defective modules, the Department of Energy still praised the company’s work as “innovative” and cost competitive, all while it blamed Abound’s failure on China for dumping underpriced panels on the market.

And now, despite the fact that Abound no longer exists, DOE is still withholding public information about the company because it claims it would harm the inactive business’s competitive edge by disclosing trade secrets.

Consumer Reports: Fisker Karma the Worst Luxury Sedan

Fisker logoIt’s been six months since the taxpayer-subsidized ($193 million) Fisker Karma broke down at the test facilities of Consumer Reports before the publication could even take it for a review spin, but now the researchers have finally been able to put the luxury electric car through its paces and their assessment is complete.

Verdict: fail.

Why did it take so long for the car loved by Leonardo DiCaprio, Justin Bieber and Al Gore to get the full evaluation? Consumer Reports explains:

Taxpayer-Funded EV Company Abandons IPO It Thought Would Save It

Frito Lay Electric TruckThe failing British electric vehicle company that pretended to become an American one in order to save its U.K. investors has scrapped its planned initial public offering that it hoped would save it in Kansas City.

Smith Electric Vehicles, recipient of $32 million in taxpayer stimulus, had reportedly fantasized it would raise $76 million (down from $125 million) via an IPO by selling roughly 4 ½ million shares at $16 to $18 each. CEO Bryan Hansel bowed to reality Thursday night and rescinded those plans.

Government Stimulus Can't Overcome 100 Years of EV Battery Shortcomings

Nissan logoIt’s the battery.

Contrary to the excuses that Nissan has supplied about the loss of capacity for owners of the all-electric Leaf in the desert Southwest – especially super-hot Phoenix – a tightly-controlled test of a dozen of the vehicles showed that all of them experienced reduced range. Even a month-old Leaf could not recharge to 100 percent.

SEC Issues Big Fines, Penalties Against Green-Tech Investment Firm

A123 logoThe venture capital redistributionist game that surrounds President Obama’s green energy stimulus doesn’t necessarily require the actual delivery of taxpayer cash to crony corporations. Sometimes the malfeasance appears simply based upon the false promise of government “investment.”

Taxpayer-Funded Electric Vehicle Maker Needs IPO Cash to Survive

Frito Lay Electric TruckSmith Electric Vehicles, which is using $32 million in taxpayer stimulus to practically give away its delivery trucks to corporations like Frito-Lay (owned by PepsiCo), Coca-Cola and Staples, is hemorrhaging money anyway and now is looking to an initial public offering to pay off debts and try to survive.

The Kansas City Star reported last week that Smith cut its production expectations and warning it is running low on cash, citing filings with the Securities and Exchange Commission. The company announced nearly a year ago it would seek $125 million through an IPO, but now says it hopes to raise about $76 million at a stock price of $16 to $18, according to a Kansas City Business Journal report.

Chinese Solar Company Learns Cronyism with Harry Reid

Harry Reid photoA solar company project that Senate Majority Leader Harry Reid successfully lured to Clark County, Nev. – where his son Rory was a former commissioner and now lobbies on behalf of the Chinese company that owns it – now wants the dominant utility in the state to buy its electricity.

So does Senator Reid, who is frustrated because every component to make ENN Energy Group move forward with the project is in place except for NV Energy, the state utility, to enter an agreement to buy the electricity. For the most part wind and solar farms don’t get built unless there is assurance that utilities will accept their power.

NY Times Discovers Obama's Favorite Utility

John Rowe photoAttentive NLPC readers were aware of the extent of Exelon Corporation’s activism to gain regulatory favor in support of “green” policies in which it reaped millions of dollars in government grants and mandates, but last week’s lengthy New York Times article about the cronyism-tainted relationship between the Chicago-based utility and the Obama administration revealed a few nuggets.

The story told how Exelon, with top executives as “early and frequent” supporters of the president as his political career ascended, were able to gain more access to the White House than others thanks to their longstanding relationships. According to one Exelon lobbyist, his employer was considered “the president’s utility.”

Big Obama Donor 'Investigated' DOE Loan Program

Herbert Allison

When is a government watchdog not really a watchdog?

When he rolls over and lays at the feet of his master rather than sink his teeth into a program that he’s been tasked to guard.

Such appears to be the (unsurprising) case with Herbert Allison, Jr. (pictured), a former Wall Street executive (Merrill Lynch and TIAA-CREF) until he was appointed president and CEO of Fannie Mae in 2008, after it was put into conservatorship. Subsequently President Obama named (and the Senate confirmed) him as overseer of the Troubled Asset Relief Program (TARP), the $700 billion asset acquisition fund that bailed out Wall Street financial institutions. He served in that role for about 15 months, until September 2010.

Syndicate content