quid pro quo Obama Administration pay to play with your taxpayer money
Emails: Obama White House Monitored Huge Loan to 'Connected' Firm
By MATTHEW MOSK, BRIAN ROSS (@brianross) , and RONNIE GREENE
ABC NEWS and iWATCH NEWS
Sept. 13, 2011
Newly uncovered emails show the White House closely monitored the Energy Department's deliberations over a $535 million government loan to Solyndra, the politically-connected solar energy firm that recently went bankrupt and is now the subject of a criminal investigation.
The company's solar panel factory was heralded as a centerpiece of the president's green energy plan -- billed as a way to jump start a promising new industry. And internal emails uncovered by investigators for the House Energy and Commerce Committee that were shared exclusively with ABC News show the Obama administration was keenly monitoring the progress of the loan, even as analysts were voicing serious concerns about the risk involved.
"This deal is NOT ready for prime time," one White House budget analyst wrote in a March 10, 2009 email, nine days before the administration formally announced the loan.
"If you guys think this is a bad idea, I need to unwind the W[est] W[ing] QUICKLY," wrote Ronald A. Klain, who was chief of staff to Vice President Joe Biden, in another email sent March 7, 2009. The "West Wing" is the portion of the White House complex that holds the offices of the president and his top staffers. Klain declined comment to ABC News.
Beginning in March, ABC News, in partnership with the Center for Public Integrity's iWatch News, was first to report on simmering questions about the role political influence may have played in Solyndra's selection as the Obama administration's first loan guarantee recipient. Federal auditors had flagged the loan, saying some applicants had benefitted from special treatment.
Solyndra Energy Firm Raided by FBI Watch Video
Obama-Backed 'Green' Company Goes Bankrupt Watch Video
WATCH the Original ABC News Report on Solyndra
The emails were uncovered by investigators for the House Energy and Commerce Committee, which will hold hearings on the Solyndra loan Wednesday. The Republican-led House has been investigating the Obama administration's green energy loan program for months. That probe took on new urgency two weeks ago, when Solyndra abruptly shut its doors and laid off 1,100 employees. Last week, the FBI raided the factory as part of a joint investigation with the Energy Department's inspector general.
"This is not right. This is not good," said Rep. Fred Upton, R-Mich., who chairs the House committee that is examining the loan. "It makes you sick to your stomach. This is taxpayer money."
As federal authorities examine whether Solyndra misled the government about its true financial state, the Obama White House is fielding fresh questions over why it pushed so hard for Solyndra. Officials with DOE and the Office of Management and Budget are expected to testify Wednesday. Executives with Solyndra, invited to appear as witnesses, will not attend Wednesday's hearing but have told the House committee they will voluntarily appear next week.
Obama's DOE has said it backed Solyndra as a potential game changer in the clean tech movement, but the company's collapse came after clear warning signs the venture was a high risk from the start.
More solar companies led by Democratic donors received federal loan guarantees12:51 AM 09/29/2011
A Daily Caller investigation has found that in addition to the failed company Solyndra, at least four other solar panel manufacturing companies receiving in excess of $500 million in loan guarantees from the Obama administration employ executives or board members who have donated large sums of money to Democratic campaigns.
And as questions swirl around possible connections between political donations and these preferential financing arrangements, the Obama White House suddenly began deflecting The Daily Caller’s questions on Wednesday to the Democratic National Committee.
Asked Wednesday to comment on the connection between large Democratic donors and Obama administration loan guarantees to the companies they represent, the White House responded to TheDC with a single sentence: “We refer your question to the Democratic National Committee.”
Concerns about the long-term viability of Solyndra, first made public by The Daily Caller back in February, have now expanded to include the financial health of other loan-guarantee recipient firms as well.
These companies have suffered from declining stock prices despite their favored status in the White House. Yet as the end of the federal government’s fiscal year looms on Friday, a new series of loans could be finalized amounting to more than nine times what taxpayers have already lost on the failed company Solyndra.
“Who was visiting the White House during this period of time?” Texas GOP Rep. Joe Barton asked when contacted by TheDC. Barton is a former chairman of the House Energy and Commerce Committee. “Who were they talking to and what were they talking about? Are there more loans at risk of not being paid back? Are these good investments or political favors?”
“The American people just lost a half billion dollars and they deserve answers to these questions before more money is wasted. Until we know exactly what happened, I think we should slow down this loan program and take a closer look at each case.”
“It is becoming more clear with each revelation that warning signs were ignored in the Solyndra case,” Barton continued. “Yet in the next 48 hours — because of a deadline that can still be changed — the Department of Energy is going to hand out another $5 billion in loans.”
Companies like First Solar, SolarReserve, SunPower Corporation and Abengoa SA have already, collectively, received billions in loans through Obama administration stimulus programs to build solar power plants in the southwestern United States.
Yet each, with the exception of the privately held SolarReserve, has seen its stock price hammered at the same time it was lobbying the Obama administration and Congress for billions in loan guarantees.
The Hill newspaper reported Wednesday that the Santa Monica, Calif.-based SolarReserve has secured a $737 million loan guarantee from the Department of Energy for a Nevada solar project.
That company has ties to George Kaiser, the Oklahoma billionaire who raised $53,500 for President Obama’s campaign in 2008. Through his Argonaut Private Equity firm, Kaiser holds a majority stake in Solyndra.
Argonaut has a voting stake on SolarReserve’s board of directors in the person of Steve Mitchell, who also serves on Solyndra’s board of directors.
Additionally, Federal Election Commission records made available by the Center for Responsive Politics show that SolarReserve board member James McDermott has contributed $61,500 to various Democratic campaigns since 2008, including $30,800 to Obama’s presidential election campaign.
McDermott’s U.S. Renewable Energy Group has a significant financial stake in SolarReserve, and has drawn scrutiny for its ties with Senate Majority Leader Harry Reid — and for reportedly driving green jobs to China.
And Lee Bailey, a fellow SolarReserve board member and U.S. Renewables Group investor, has donated $21,850 since 2008 to Democratic candidates including President Obama, Senate Majority Leader Harry Reid, California Sen. Barbara Boxer and then-presidential candidate Hillary Clinton.
SolarReserve’s board of directors also includes Jasandra Nyker of Pacific Corporate Group Asset Management, where former Speaker of the House Nancy Pelosi’s brother-in-law, Ronald Pelosi, holds a leadership position.
Other data from the Center for Responsive Politics show that SolarReserve paid $100,000 in lobbying fees in 2009 to the Podesta Group. That firm’s principal, Tony Podesta, is the brother of John Podesta — who ran Barack Obama’s presidential transition team.
SolarReserve’s financials are not public since it’s a privately held company, but First Solar provides a more transparent example. That solar energy firm’s stock has lost more than $100 in value since it peaked at $170.80 on Feb. 17, 2011. The company was trading at $65.77 per share Wednesday afternoon.
This market tumble came despite First Solar’s success in winning approximately $2.1 billion in loan guarantees from the Department of Energy. The company announced Wednesday that it would not be able to qualify for a further $1.5 billion loan guarantee before the Sept. 30 deadline.
First Solar founder and Chairman Michael Ahearn, whom Reuters reported cashed in $68.9 million of his company’s stock last month, has donated $123,650, along with his wife, to the Democratic Party and Democratic candidates during the three most recent cycles, mostly in Arizona.
The solar energy giant, the nation’s biggest, also spent more than $1.5 million lobbying Congress and the Obama administration since 2009 on the stimulus and subsequent green-jobs plans. This included approximately $400,000 paid to the Washington Tax Group, which also represented Solyndra.
Investment website The Motley Fool reported Wednesday that First Solar faces a potentially bleak future as its technology increasingly is becoming eclipsed by its competitors.
“As [solar] panel costs fall the balance of system costs becomes more important, highlighting First Solar’s current conundrum,” Motley Fool contributor Travis Hoium writes. “A less efficient panel requires more land, more labor to install, and more auxiliary components than higher efficiency panels. And with feed-in tariffs now leaning on rooftop installations in Europe, First Solar is now behind the curve.”
First Solar’s competitor SunPower has similarly received a $1.3 billion loan guarantee for a solar project in California, but Wall Street has been less than optimistic about the company’s financial health.
SunPower’s stock, like First Solar’s has lost enormous value in recent months. The stock peaked at $21.40 on April 29, 2011, and now trades at $8.36 per share. Morningstar forecasts the company “will post losses in both 2011 and 2012.” SunPower’s technology, Morningstar warns, is likely to remain “too costly compared to its peers” and it expects “mediocre” returns from the stock in the foreseeable future.
SunPower has paid lobbyist Patrick Murphy, a close confidant of Senate Majority Leader Harry Reid, at least $290,000 in lobbying fees since 2009.
SunPower’s political action committee gave $15,650 to Democratic congressional candidates in 2010 and only $500 to a single Republican candidate. Reid received the largest slice of that pie, a $4,000 campaign contribution.
The Spanish firm Abengoa Solar received a $1.45 billion loan guarantee for an Arizona solar project, yet it has similar financial woes. Abengoa also recently reached an agreement for a second loan guarantee, $1.2 billion for another Arizona project.
Yet despite its success appealing to the Obama administration for financing, the company has consistently lost value since March. Its stock fell from a high of $16.50 six months ago to just $10.45 per share on Wednesday.
Abengoa Solar’s lobbying efforts are spearheaded internally by Fred Morse, a veteran of the Department of Energy from the Carter and Reagan administrations. Since 2009, the company has paid Ernst and Young $330,000 in lobbying fees, according to information made available by the Center for Responsible Politics.
Abengoa also enlisted the help of California Democratic Sen. Dianne Feinstein, according to the Institute for Energy Research, to pressure the Department of Energy to expedite the loan guarantees.
“It is wrong when we let the country pick the winners and the losers,” said Mark Kramer, a project faculty member of the University of Pennsylvania’s Wharton School of Business. “If they can’t get funding privately, they probably shouldn’t exist.”
In an interview with TheDC, Kramer described these companies as bad investments whose collapse taxpayers shouldn’t be bankrolling.
But Rhone Resch, CEO of the Solar Energy Industries Association, defends the loan guarantee program as an investment in clean technologies that has created thousands of jobs and has spurred innovation.
He contends the United States needs to invest in solar to allow it to thrive in the face of Chinese competition, which has made it difficult for American companies.
This stiff competition was described as a key factor when Massachusetts-based Evergreen Solar and New York-based SpectraWatt filed for bankruptcy protection earlier this year.
Article printed from The Daily Caller: http://dailycaller.com
Read more: http://dailycaller.com/2011/09/29/more-solar-companies-led-by-democratic-donors-received-federal-loan-guarantees/#ixzz1ZeoTuca4
LightSquared: Obama’s Dangerous Broadband Boondoggle
By Michelle Malkin • September 21, 2011 09:53 AM
Let the sun shine in…
After I blogged last week about Barack Obama’s burgeoning LightSquared scandal, I received a miffed e-mail from billionaire hedge fund manager/Obama donor/LightSquared principal backer Philip Falcone under the subject line “Tip.” Falcone defended the Obama administration and noted that the predecessor to LightSquared, called Skyterra, had benefited from some previous regulatory approvals under the Bush administration. (Sound familiar? It’s the same “Blame Bush” defense the White House and its allies are using to try and deflect the Solyndra debacle.)
Falcone then fumed at me: “I really wish someone would take 5 freaking minutes to do some diligence and get the chronology straight! I’d be glad to point you in the right direction if you so choose. You may even find some dirt on AT&T, the GPS guys and they (sic) money they are spending on this campaign. Do you know that your tax dollar goes to build satellites that the GPS manufacturers use, for free?? Billions….Billions…..Billions…And a few of these companies are foreign companies….that do not pay taxes. I really truly wish someone would spend some time to get the facts straight.”
While Falcone and his P.R. team take to the airwaves, I took more than “5 freaking minutes to do some diligence” and did a little more digging. My syndicated column below goes over the latest developments and basic facts since The Daily Beat’s Eli Lake first reported Gen. Shelton’s bombshell disclosures about the White House’s testimony-meddling.
But there’s much more.
As the House prepares to launch official investigations of both Solyndra and LightSquared, investigators need to look closely at exactly how the Obama FCC’s unusual January 2011 waiver for LightSquared promised the politically-connected company a stunning corporate windfall. The waiver gave the company a green light to use its initial satellite bandwidth license for “exclusive terrestrial purposes.” As the Telecom, Media and Finance Associates, Inc. blog explains, this meant that “the spectrum rights would be considered (and valued) as equivalent to terrestrial spectrum, allowing LightSquared to raise additional funds to build out its network. In fact that is exactly what LightSquared then proceeded to do, by raising $586M, secured against its spectrum assets, in February 2011.”
By the company’s own internal estimates and comparisons with other satellite spectrum transactions, the January 2011 waiver boosted the value of LightSquared’s spectrum assets by $10 billion more than two similarly situated mobile satellite service providers that had gone bankrupt. TMF Associates notes:
Once this $10B windfall is more widely recognized, I think it is going to represent an enormous political problem for both LightSquared and the FCC Chairman during the upcoming Congressional hearings, making Solyndra’s $535M loan look like small beer [emphasis added]. After all in July 2010 current FCC Commissioner Copps noted in conjunction with the MSS NPRM/NOI that he “appreciate[d] the willingness of my colleagues to raise questions regarding the need for any mechanisms—such as spectrum fees—to compensate the American people for the terrestrial use of the public spectrum resource”, which is exactly why January’s action (which was not even brought before the full Commission) was such “an unprecedented and surprising development”.
A few more tidbits:
*Soros Fund Management — surprise, surprise — is a “signficant investor” in Falcone’s enterprise.
*Debunking of LightSquared’s spin that it “has never taken one dollar in taxpayer money:”
…[A]pparently forgetting Mr Carlisle’s testimony to Congress that LightSquared has received over $2M from the FBI for providing satellite services and equipment in the current fiscal year, not to mention its own estimate that the January 2011 FCC waiver was worth over $10 billion in incremental spectrum value to the company. And did he really just say that they will only be investing $8B rather than the $14B number they have used previously?
The FCC Chairman’s refusal to attend the hearing comes in the wake of allegations that the White House pressured Gen. Shelton to change his testimony to the Committee, and while Sen. Grassley is still pursuing the FCC Chairman for details of FCC communications with and about LightSquared in the run up to approval of the January 2011 waiver. My guess is that there must have been some reason for LightSquared to submit its waiver request on the Thursday before Thanksgiving and it would be reasonable to assume that they must therefore have been told by the FCC that the application would be placed immediately on public notice with an accelerated (10 day) comment period over the holiday, in the hope that no-one would notice. If that was the case then it would be quite surprising if there was no email evidence of such communications.
Unfortunately for the White House, the over-worn “Blame Bush” card does not explain the Obama FCC’s actions, the Obama FCC’s refusal to attend the hearing, or President Obama’s own eyebrow-raising financial entanglements (more on that below) with LightSquared’s predecessor and his ties to several of the shady investors and promoters of the racket.
LightSquared: Obama’s Dangerous Broadband Boondoggle
by Michelle Malkin
If you thought the half-billion-dollar, stimulus-funded Solyndra solar company bust was a taxpayer nightmare, just wait. If you thought the botched Fast and Furious border gun-smuggling surveillance operation was a national security nightmare, hold on. Right on the heels of those two blood-boilers comes yet another alleged pay-for-play racket from the most ethical administration ever.
Welcome to LightSquared. It’s a toxic mix of venture socialism (to borrow GOP Sen. Jim DeMint’s apt phrase), campaign finance influence-peddling and perilous corner-cutting all rolled into one.
The company is building “a state-of-the-art open wireless broadband network.” Competition in the industry is a good thing, of course. But military, government and civilian aviation experts have long objected to LightSquared’s potential to interfere with the Global Positioning System (GPS) satellite network. As the government’s own Positioning, Navigation and Timing agency explained:
“The GPS community is concerned because testing has shown that LightSquared’s ground-based transmissions overpower the relatively weak GPS signal from space. Although LightSquared will operate in its own radio band, that band is so close to the GPS signals that most GPS devices pick up the stronger LightSquared signal and become overloaded or jammed.”
Two high-ranking witnesses — Air Force Space Command four-star Gen. William Shelton and National Coordination Office for Space-Based Positioning, Navigation and Timing Director Anthony Russo — have now blown the whistle on how the White House pressured them to alter their congressional testimony and play down concerns about LightSquared’s threat to military communications. According to Eli Lake of The Daily Beast, both officials were urged to express confidence in the company and endorse its promise to address any technical concerns “within 90 days.”
Gen. Shelton had noted earlier this year: “Within three to five miles on the ground and within 12 miles in the air, GPS is jammed by (LightSquared’s) towers. … If we allow that system to be fielded and it does indeed jam GPS, think about the impact. We’re hopeful we can find a solution, but physics being physics, we don’t see a solution right now.”
Despite industry-wide protests, the firm somehow received fast-track approval for a special FCC waiver that grants LightSquared the right to use wireless spectrum to build out a national 4G wireless network on the cheap. Ken Boehm, of the conservative watchdog National Legal and Policy Center (NLPC) in Washington, D.C., summed up the deal earlier this year: “LightSquared will get the spectrum for a song, while its competitors (e.g., AT&T and Verizon) have to spend billions.”
The current “fix” LightSquared proposes to address the interference problems is a costly, conceptual pipe dream that could require massive retrofitting of millions of handheld GPS devices. GPS expert Eric Gakstatter scoffs: “I’ve been pretty open-minded about LightSquared proposing a solution, but this really insults our intelligence. (A)s we’ve seen previously with LightSquared, it’s not about finding a practical solution for the GPS user community; it’s all about selling an idea to the FCC. The problem is that the FCC doesn’t have to live with LightSquared’s half-baked ‘solution’; we do.”
So, what’s greasing LightSquared’s skids? Hint: It used to be known as “Skyterra.” In 2005, Obama put $50,000 into the speculative firm — raising eyebrows even among his water-carriers at The New York Times. The paper noted that Skyterra’s principal backers at the time of the investment included four Obama “friends and donors who had raised more than $150,000 for his political committees.”
One of those pals who urged him to buy stock in Skyterra was George Haywood, a major Skyterra investor and campaign donor who chipped in nearly $50,000 to Obama’s campaigns and to his political action committee along with his wife.
Coincidentally, Obama bought his Skyterra stock the very same day the FCC “ruled in favor of the company’s effort to create a nationwide wireless network by combining satellites and land-based communications systems.” One industry expert tells me it strains credulity to believe the timing wasn’t dictated by inside information. Indeed, the Times reported that immediately after that morning ruling, “Tejas Securities, a regional brokerage in Texas that handled investment banking for Skyterra, issued a research report speculating that Skyterra stock could triple in value.”
Coincidentally, Tejas and its chairman, John J. Gorman, were also major backers of Obama — flying him in a private plane for political rallies and pitching in more than $150,000 for his campaign coffers since 2004. Obama sold his stock at a loss in November 2005 — just as Skyterra was locked in a messy proxy fight over a failed roll-up — but his political relationship with the company was cemented.
In 2009, shady billionaire hedge-fund manager Philip Falcone — whose firm Harbinger Capital Partners is reportedly under investigation by the Securities and Exchange Commission for market manipulation abuses — acquired Skyterra.
Coincidentally, Falcone, his wife and LightSquared CEO Sanjiv Ahuja have contributed nearly $100,000 between them to the Democratic Party during critical White House meeting periods and negotiations over LightSquared’s regulatory fate.
Oh, and coincidentally, there’s $6 billion earmarked for a “public safety broadband corporation” buried in the Obama jobs proposal just as LightSquared pushes into that market, too.
It’s all just one strange quirk of timing, Team Obama shrugs. Except, as we all should know by now: There are no coincidences in Chicago on the Potomac. Just an endless avalanche of quids, quos and taxpayer woes.
Shady birds of a feather flock together. Here’s more background on Obama’s broadband boondoggle pals.
Via Business Week 2005, here’s what was going down with key Skyterra/LightSquared investors after Obama sold his stock. According to public SEC filings, Motient Corporation in September 2005 “entered into a non-binding letter of intent with Skyterra Communications Inc. and TMI Communications and Company (and others) to consolidate ownership” of two mobile satellite service providers — MSV and TerreStar — within Motient. Motient’s largest shareholder at the time was Dallas-based hedge fund Highland Capital Management. Shady pandemonium ensued:
In August, Highland sued Motient’s officers and directors in Chancery Court of Delaware, claiming the defendants tried to line their pockets with Motient’s cash by paying exorbitant fees to firms in which they held interests. The suit focuses especially on Motient chairman Steven G. Singer, his brother and convicted felon Gary A. Singer, and former Motient director Jared E. Abbruzzese.
According to the complaint, Motient hired Abbruzzese’s Albany (NY)-based consultancy Communication Technology Advisors (CTA) in May 2002 to provide financial advice while Abbruzzese was still a director at Motient. At the time, two other CTA employees, Peter D. Aquino and Gerald S. Kittner, were also Motient directors. Since then, CTA has functioned as Motient’s de facto executive management and has received over $3 million in fees and tens of millions of dollars worth of warrants to buy Motient stock, Highland’s complaint says.
The complaint further claims that Abbruzzese and CTA in 2004 pressured Motient’s board to hire a small Austin (Tex.)-based investment bank, Tejas Inc., to raise money for Motient. However, Abbruzzese allegedly failed to disclose that he owned options to buy 100,000 shares of Tejas. As a result of fees and warrants paid by Motient, Tejas’ annual profit increased over 2,600%, and the Tejas shares underlying Abbruzzese’s options appreciated 900% in one year. In March 2005, Motient appointed Barry A. Williamson to its board, a Tejas director who owns over 51,000 Tejas shares. In May 2005, Tejas announced it would acquire CTA for $65 million. Abbruzzese was appointed vice chairman of Tejas and granted a generous employment agreement and stock-option package.
Abbruzzese’s alleged conflicts run deeper. In fiscal year 2004, Motient lost $72 million on revenues of $36.9 million. What, then, accounts for its $1.3 billion market cap? The company has a 40% stake in Mobile Satellite Ventures (MSV), a Reston (Va.)-based provider of mobile satellite communications that owns valuable spectrum licenses. MSV is a limited partnership, and its general partner is Motient Satellite Ventures GP, Inc., whose managers are Abbruzzese and Kittner of CTA. “Motient’s purchases of MSV units in 2004 at prices that reflected ever increasing valuations of MSV enriched Kittner, Abbruzzese and CTA through their ownership of MSV units,” Highland’s complaint says.
…Hovering in the background of this power struggle is Steven Singer’s brother, Gary Singer, who in the mid-1990s spent nearly two years in federal prison for fraud, money laundering, and racketeering as part of a junk-bond insider trading scheme while he was co-chairman and CEO at Cooper Companies, Inc., a healthcare products maker in Pleasanton (Calif.). At the time of the crime, Steven Singer and a third brother, Brad Singer, were also executives at Cooper and were later sued on civil charges related to the trading scheme.
The SEC has permanently barred Gary Singer from acting as an officer or director of any public company. Nevertheless, Highland’s complaint says that he “shares an office with Steven Singer, has participated in many Motient board meetings and conference calls, and even acted in a managerial role on behalf of the company.” Gary Singer has allegedly pressured Motient’s board for compensation and owns warrants to acquire Motient shares.
Here’s a summary of the “conflicts of interests and board self-dealings” related to Terrestar.
Note also from the SEC documents that the interference issues that are at the heart of the regulatory battle now were raised at least six years ago. LightSquared continues to downplay those problems with pie-in-the-sky fixes.
House GOP investigators have their work cut out for them.
The latest on their quest for documents:
House Republicans asked for records of contacts between the White House and Philip Falcone, citing concerns about possible political pressure on U.S. agencies over the billionaire’s proposed LightSquared wireless venture.
LightSquared is seeking to allay fears its planned $14 billion network may disrupt military and civilian uses of the global-positioning system. The company needs clearance from the Federal Communications Commission to proceed. The request yesterday from House Republicans adds political static to a debate that has centered on radio interference.
Some U.S. officials have been reluctant to testify on GPS interference and agencies haven’t provided information, Representative Ralph Hall, of Texas, chairman of the House Committee on Science, Space and Technology, wrote in a letter yesterday. That “does nothing to promote the case for LightSquared, nor does it put our minds at ease about the possibility that this administration may be providing special favors to high-level financial donors,” Hall wrote.
The Obama administration should turn over “all records” of contacts by Falcone, LightSquared and his Harbinger Capital Partners hedge fund, according to the letter. Six other Republicans on the panel signed the letter, which was distributed by e-mail.
Events surrounding solar-panel maker Solyndra LLC, which failed after receiving U.S. loan guarantees, “further emphasize our concern about a pattern by this administration to grant preferential treatment toward donors,” Hall and his colleagues wrote. “As with Solyndra, the lack of scrutiny of the LightSquared project is disturbing.”
Team Obama is spending $737 million to create 45 permanent jobs.
The Hill reported, via Free Republic:
The Energy Department announced Wednesday that is has finalized a $737 million loan guarantee for a Nevada solar project.
The decision comes several weeks after a California-based solar manufacturer that received a $535 million loan guarantee from the Obama administration in 2009 filed for bankruptcy and laid off 1,100 workers, setting off a firestorm in Washington.
The $737 million loan guarantee will help finance construction of the Crescent Dunes Solar Energy Project, a 110-megawatt solar-power-generating facility in Nye County, Nev. The project is sponsored by Tonopah Solar, a subsidiary of California-based SolarReserve.
Crescent Dunes is the latest solar project to receive a loan guarantee from the Energy Department in recent weeks. The department announced a $1.2 billion loan guarantee to Abengoa Solar for a solar generation project in California and a $150 million loan guarantee to 1366 Technologies for a Massachusetts solar manufacturing project earlier this month.
The Energy Department says the project will result in 600 construction jobs and 45 permanent jobs.
It looks like Rep. Allen West was right.
Obama IS trying to destroy the economy.
Nancy Pelosi's brother-in-law is given $737 million dollars of taxpayers' money
Submitted by Neverquit on Thu, 09/29/2011 - 18:38
in Daily Paul Liberty Forum
Nancy Obama Pelosi -- RonPaul
votes Nancy Pelosi is facing accusations of cronyism after a solar energy project, which her brother-in-law has a stake in, landed a $737 million loan guarantee from the Department of Energy, despite the growing Solyndra scandal.
The massive loan agreement is raising new concerns about the use of taxpayers' money as vast sums are invested in technology similar to that of the doomed energy project.
The investment has intensified the debate over the effectiveness of solar energy as a major power source.
The SolarReserve project is backed by an energy investment fund where the Minority Leader's brother-in-law Ronald Pelosi is second in command.
PCG Clean Energy & Technology Fund (East) LLC is listed as one of the investors in the project that has been given the staggering loan, which even dwarfs that given to failed company Solyndra.