The past year was a dismal one for the passé idea that government would use taxpayer dollars responsibly, and that was nowhere more evident than with President Obama’s initiatives to promote “clean” energy technology companies and projects with so-called “stimulus” funds and other public money. NLPC reported extensively on some of the most egregious examples.
Solar Favors Don’t Stop Fizzle
Solyndra went bankrupt in 2011, and the reverberations over $535 million in lost taxpayer money were felt throughout 2012. Money still flowed out from the Department of Energy and its stimulus stash, but Congressional Republicans’ scrutiny of big projects – especially in the Loan Program Office –paralyzed some new projects.
The year began with BP, which not long ago downplayed fossil fuels in favor of a “Beyond Petroleum” motto, exiting the solar business despite having received a $7.5 million grant from the U.S. government …
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.
But it’s Allison’s role as a special investigator of the Department of Energy’s stimulus-funded loan program that is sparking curiosity, as explained in an Associated Press story published yesterday. Not long after …
How did a start-up electric car company that raised more than $1 billion suddenly fail to meet government-lending standards, to the point where it can no longer draw on an awarded Department of Energy loan and has therefore halted renovation work on a Delaware plant?
That’s one curiosity about Fisker Automotive, a high-end manufacturer that apparently has burned through so much cash that it does not want to move forward with plans to produce an electric family sedan without the assurance that another $336 million will come forth from taxpayers. Despite having a reported $850 million in private investment and $193 million from that $529 million loan, Fisker laid off 65-or-so employees last week as DOE froze payments.
DOE’s action was attributed to Fisker’s failure to attain certain unidentified “milestones.” Fisker had projected the delivery of 15,000 Karmas in 2012, at a showroom cost of $102,000 for the …