Research Briefing

Stimulus-Funded Home Weatherization Program “Bogged Down By Red Tape,” Completed Only A Fraction Of Promised Work

(ABC’s “World News Tonight,” 2/17/10)

“[A] new report obtained by ABC News says a $5 billion weatherization program that was meant to save energy and create jobs has not yet done much of either.” (Jonathan Karl, “Report: Stimulus Weatherization Program Bogged Down by Red Tape,” ABC News, 2/17/10)

• In 2009, Only 9,100 Homes Weatherized, “A Far Cry From The 593,000” Promised. “As of December 31, only 9,100 homes had been weatherized nationwide, according to the new report by the Government Accountability Office (GAO) to be released Thursday. The Department of Energy, which runs the program, says it actually weatherized more than 22,000 homes last year with Recovery Act funds. Either way, it's a far cry from the 593,000 they had planned to complete last year.” (Jonathan Karl, “Report: Stimulus Weatherization Program Bogged Down by Red Tape,” ABC News, 2/17/10)

NEW REPORT, SAME STORY: WEATHERIZATION PROGRAMS HIGHLY SUSCEPTIBLE TO FRAUD AND WASTE

Weatherization Programs “One Of The Most Difficult-To-Track” In Stimulus.” “But the spending raises concerns among government auditors who say the weatherization program could be one of the most difficult-to-track portions of the $787 billion recovery act signed into law by President Barack Obama in February.” (Tim Martin, “Stimulus Weatherization Plan Comes With Pros and Cons,” The Associated Press, 6/3/09)

• Chicago Factory Took Stimulus Funds For Weatherization, But Few Jobs Have Been Created. “The story had a happy ending when California company Serious Materials bought the plant last winter and promised to rehire all 250 workers by summer, banking on weatherization incentives in the American Recovery and Reinvestment Act to create demand for highly energy-efficient windows … But months after Serious Materials chief executive Kevin Surace planned to be churning out windows, the factory still has very few customers and has hired back fewer than 20 workers. In fact, Surace said the company is spending $100,000 a week just to keep the factory open.” (Kari Lydersen, “Stimulus Funds Yet To Open Many Windows,” The Washington Post, 10/18/09)

AND REPORT FURTHER EXPOSES MYTH OF GREEN STIMULUS JOBS

“Green Energy” Is Not Helping Unemployment. “‘Green energy’ is proving to be no miracle solution to the nation's monumental unemployment problems, and it is doing little to help the economy emerge from its deepest recession in decades, economists say.” (Patrice Hill, “Green Energy Stimulus Growing Few Jobs,” The Washington Times, 11/23/09)

• Green Jobs Not Being Created In California. “Many economists had predicted that California would be a major beneficiary of government stimulus funding in battery technology, wind power and solar energy, with the Golden State reaping a bumper crop of green jobs. A recent report by the federal government said California led the nation with 110,000 total jobs created or saved by the $787-billion American Recovery and Reinvestment Act that Congress signed into law in February. But so far, few of those positions appear to have anything to do with renewable energy or clean technology, which the Obama administration has touted as key growth industries for the U.S. economy.” (Alana Semuel, “Green Jobs In State Getting Little Stimulus Help,” Los Angeles Times, 11/27/09)

Green Research Funding “Will Do Little To Boost Employment.” “In addition, a good chunk of the funding flowing to green industries is for research, which could prove to be immensely valuable over time but will do little to boost employment in the short term.” (Alana Semuel, “Green Jobs In State Getting Little Stimulus Help,” Los Angeles Times, 11/27/09)

Stimulus Funds For Renewable Projects Overwhelmingly Go To European-Based Companies. “The U.S. Treasury Department has helped fund some 150 renewable energy projects from a portion of the $787 billion American Recovery and Reinvestment Act of 2009 and has given out grants worth more than $1.5 billion to wind projects.  More than two-thirds of that money, or $1.06 billion, has gone to projects developed by European-based companies.” (Matt Daily, “Europe's Wind Companies Snap Up U.S. Stimulus Cash,” Reuters, 12/18/09)

Stimulus Funds Are Even Being Used To Create Thousands Of Jobs In China. “A Chinese company called A-power is helping to build a massive $1.5 billion wind farm in West Texas. The consortium behind the project expects to get $450 million in stimulus money.  Walt Hornaday, an American partner on the project, said it would create some American jobs. ‘Our estimation,’ he said, ‘is that we are going to have on the order of 300 construction jobs just within the fence of the project.’ But that's in addition to 2,000 manufacturing jobs -- many of them in China.” (Jonathan Karl, “New Wind Farms In The U.S. Do Not Bring Jobs,” ABC News, 2/9/10)