The Obama administration simply cannot help itself. Like a hapless gambler scouring the sidewalk for slot quarters, the White House continues — in spite of the embarrassing failure of its pet project Solyndra — to shower billions on “green” companies in the form of taxpayer-guaranteed loans. The LA Times reports:
The U.S. Energy Department hopes that a new solar energy project will result in about 900 construction and permanent operations jobs.
Energy Secretary Steven Chu said today that his department had finalized a $1.2-billion loan guarantee to Mojave Solar for the development of the Mojave Solar Project. When complete, the 250-megawatt solar generation project in San Bernardino County will increase the nation’s currently installed concentrating solar power capacity by approximately 50%.
Abengoa Solar Inc., the project sponsor, is the source of the estimate on construction and permanent operations jobs.
“Investments in solar generation facilities like the Mojave Solar Project are critical to our effort to create good, clean energy jobs in America and compete with countries like China in the global clean energy race,” Chu said. “This project will supply local utilities with energy, help drive down the cost of solar power and fund more than 900 American jobs, all at minimal risk to the taxpayer.”
That’s more than double the $535 million dished out to Solyndra, and works out to about $1.3 million per job created, which seems to be par for the course when it comes to these types of ventures. And because most of those (construction) jobs will presumably be temporary, the real figure is actually much higher.
The loan to the Mojave Solar Project was authorized by the same program that approved funding for Solyndra. In fact, the Department of Energy still has some $10.4 billion in pending loans that — in accordance with the American Reinvestment and Recovery Act (the stimulus package) — must allocatd before Sept. 30, 2011 or else they will be recouped. Reps. Fred Upton (R., Mich.), chairman of the Energy and Commerce Committee, and Cliff Stearns (R., Fla.), chairman of the Subcomittee on Oversight and Investigation, have called on the administration not to proceed with any new loans until the Solydra debacle can be fully investigated, apparently to no avail. “With taxpayers potentially on the hook for this half-billion dollar bust, it’s time to sound the alarm about the remaining $10 billion in loan guarantees set to expire September 30,” Upton and Stearns said in a statement. “Let’s learn the lessons of Solyndra before another dollar goes out the door.”
More here.
(h/t Weasel Zippers)
Can Congress really not do anything to stop these loans?
Reply to this commentLinkReport AbuseDon't give money to the executive branch. This loan application sat for years in some DOE clown's office, starting in 2006. Obama took over in January 2009, one of his biggest bundlers was an investor in this company and 60 days later - abracadabra, loan pulled out of Obama's, ah, hat.
Reply to this commentLinkReport AbuseThe Congress is in charge of all of the federal money, including loans, since 1974.
Reply to this commentLinkReport Abuse"In fact, the Department of Energy still has some $10.4 billion in pending loans"
That's a painless little chunk of potential deficit/debt reduction.
Hopefully they sit on it rather than urinating it away like the Solyndra debacle.
Reply to this commentLinkReport AbuseAnyone wanna bet on whether this one winds up in Bankruptcy before or after election day 2012?
Reply to this commentLinkReport AbuseThat's an awful lot of money to blow through in fourteen months.
Reply to this commentLinkReport AbuseIt's a green energy company. They can do anything.
I never thought the green scam would unravel this quickly. I had thought there would be maybe 3 or 4 more years of hype until these companies started to go down this hard. I guess green companies really are efficient.
Reply to this commentLinkReport AbuseEgad, don't give them credif for 900 jobs at $1.3 million apiece when it's 900 CONSTRUCTION as well as permanent jobs. How many are temporary construction jobs?
Also, you might grant that people employed permanently by this company will have "green" jobs, but the construction workers would be just as happy putting up new strip malls on filled in wetlands. Building is building; there is nothing green about it.
Reply to this commentLinkReport AbuseI think I read somewhere that solar facilities like this take a lot of water. The Mojave Desert doesn't have a lot of water so where are they going to get it? And if this is true that it needs lots of water, isn't water more important to our economy than some pathetically small amount of kilowatts that will be generated from this hugely expensive and hugely subsidize boondoggle?
Reply to this commentLinkReport AbuseHas it occurred to any of the geniuses in this administration to ask, "Why can't these great companies get loan guarantees and venture capital from the usual sources? Why do they keep coming to the government?"
This is just another private profit/public loss scam. The taxpayers are on the hook for the losses, but aren't in line for any profits (even assuming there's a remote chance of a profit). Why? Who in his right mind would guarantee a single dime of this company's debt if that dime were coming out of his own wallet?
How often do you read in the financial advice columns, a pathetic letter from some poor yutz who guaranteed his daughter's mortgage or son's business loan, and when the kid defaulted, the bank came after dad? And the advice columnist can do nothing but cluck in sympathy and remind readers NEVER to co-sign a loan.
How is this any different, other than the sheer amount of money the taxpayer is on the hook for?
Reply to this commentLinkReport AbuseThat's more than $1.2 million per job, which is about what he's been costing us thus far.
I have an alternative plan:
Dear President Obama,
Please send up the B-52 fleet to bombard America from above with $20 bills. It's the only thing you haven't tried so far.
Best regards,
Patrick
Reply to this commentLinkReport AbuseIt is hard to imagine how this is possible. If Obama didn't have most of media covering his blunders 24/7, his approval level would be less than 10%, or about the number of people who directly benefit from his malfeasance.
Reply to this commentLinkReport AbuseHere lies an easy offset to the deficit. I've done my part (identifying $1.2 billion in deficit reduction). Now Mr. Buffett may contribute his $1.2 billion cash in matching funds. That gets us to $2.4 billion....
Reply to this commentLinkReport AbuseAYFKM? NFW! Way more than "stupid", definitely "treasonous."
d(^_^)b
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"Because the Only Good Progressive is a Failed Progressive"
And when NRO is sourcing Weazel Zippers ... surely the Conservative Ascendancy is ON! Yippee Skippee.
d(^_^)b
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"Because the Only Good Progressive is a Failed Progressive"
The funny part of this is that this loan is probably not in any great danger of default. The taxpayers won't pay for this, but the California ratepayers sure will. I'm sure the power from this plant will come in handy to some utility trying to comply with California greenhouse gas regulations. The loan will be repaid, but Californians are going to be paying a lot more for their power in order to pay for all of the expensive green power Jerry Brown wants.
I sure am glad I don't live in California anymore!
Reply to this commentLinkReport AbuseCriminy - doesn't anyone see that the administration isn't concerned about business models and the viability of these companies? This is ONLY about paying out to connected friends while the paying is good - before the 2012 election turns the money spigot off. As they say in the old country-- follow the money. This is the same company that DiFi and Barb Boxer refused to give EPA waivers for because the Mojave is sensitive and protects lizards. NOTHING will be built but the money will disappear. This is not business activity, it's criminal activity.
Reply to this commentLinkReport AbuseIncompetence or malice? We report, YOU decide!
Reply to this commentLinkReport AbuseYears ago, a very wise man told me, "Never ascribe to malice what can be explained by incompetence."
Reply to this commentLinkReport AbuseIf only we could dig up the name of the owner of Mojave Solar.... and review his campaign contributions.....
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