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.
A stimulus-backed Department of Energy loan program that has not been tapped for four years, and was deemed unwanted two years ago by the Government Accountability Office, is suddenly ready and willing to dole out more taxpayer millions again – to a corporation that doesn’t need it.
There was little doubt that once CEO Elon Musk and Tesla announced they would locate their electric vehicle battery “Gigafactory” in Nevada, that Silver State lawmakers would vote in a special legislative session to support targeted tax breaks and incentives – even at the breathtaking amount of $1.3 billion.
Gov. Brian Sandoval, the courter, would have appeared an extreme fool if he didn’t already have the political backing needed for the deal. But there were other mini-surprises: Unanimity at the legislature; four separate bills passed to construct the package; and benefits enjoyed by other industries in Nevada that were rescinded to help with the Tesla payoff.
NLPC has reported regularly on several of the large-ticket boondoggles that have received taxpayer support via President Obama’s “green” stimulus initiatives, but for every Fisker, Nissan Leaf or Ecotality, there are thousands of smaller, equally unworthy beneficiaries that deserve public scorn.
Government watchdogs – both “professional” and amateur – can scour the Recovery.gov Web site and find the waste pretty easily. But KCNC-TV reporter Brian Maass had the stimulus program come to his doorstep. Denver had launched a program, paid for out of the federal American Recovery and Reinvestment Act, to plant about 4,000 trees at private residences (photo courtesy KCNC) – many in high-priced neighborhoods that didn’t need the free shade.
Thirteen years ago a former executive chef/kitchen manager launched an environmentally friendly cleaning products company to compete with industry giant Ecolab, his former employer, where he had worked and achieved the position of district sales manager.
Reports have trickled out lately that, all of a sudden, demand is so great for the all-electric Leaf that Nissan’s production just can’t keep up.
“We’re going to be short on inventory all through the summer,” said Erik Gottfried, director of electric vehicle sales for Nissan, to Automotive News. “It will be late fall before we can produce enough to satisfy everybody.”
Then the appropriate question from taxpayers should be, “What did we pay $1.4 billion for you to do in Smyrna, Tennessee then?!?”
All five ATVM recipients, awarded a total of $8.4 billion of taxpayer-backed financing under the Recovery Act, have earned derision to some degree. Most fit into the already much-ridiculed electric vehicles program. VPG was funded to produce wheelchair-accessible passenger vehicles that ran on compressed natural gas.
Stimulus déjà vu-lishness lurks: Another “green” tech company that received hundreds of millions of taxpayer dollars is financially troubled, seeks a buyer (or their preferred term – a “partner”), and China is ready to swoop in and buy up the remains on the cheap. And the same two Republican senators who slammed the last deal that went down like this are sickened again.