Obama’s Long Anticipated “Independent Review” Failed To Report Just How Poorly His Green Energy Stimulus Portfolio Is Performing

OBAMA DOESN’T REALLY CARE HOW MUCH MONEY HIS GREEN ENERGY EXPERIMENT LOSES

Obama: “[W]e Knew From The Start That The Loan Guarantee Program Was Going To Entail Some Risk, By Definition. If It Was A Risk-Free Proposition, Then We Wouldn’t Have To Worry About It. But The Overall Portfolio Has Been Successful.” (President Barack Obama, News Conference, Washington, D.C., 10/6/11)

Obama: “Some Technologies Don’t Pan Out; Some Companies Fail.  But I Will Not Walk Away From The Promise Of Clean Energy.” (President Barack Obama, Remarks In The State Of The Union Address, 1/24/12)

CBS Reports 12 Clean Energy Companies Are Having Trouble After Collectively Being Approved For More Than $6.5 Billion In Federal Assistance, While 5 Have Declared For Bankruptcy. “CBS News counted 12 clean energy companies that are having trouble after collectively being approved for more than $6.5 billion in federal assistance. Five have filed for bankruptcy: The junk bond-rated Beacon, Evergreen Solar, SpectraWatt, AES’ subsidiary Eastern Energy and Solyndra.” (Sharyl Attkisson, “Tax Dollars Backing Some ‘Risky’ Energy Projects,” CBS News, 1/13/12)

THE DEPARTMENT OF ENERGY LOAN PROGRAM IS EXPECTED TO LOSE TAXPAYERS BILLIONS, WHILE MORE COMPANIES ARE “VERY LIKELY” TO FAIL

“Overall, The Energy Department’s Loan Programs Have Finalized Loans And Loan Guarantees For 33 Projects, Totaling About $35.5 Billion.” (Ben Geman and Andrew Restuccia, “White House To Review Energy Loan Programs As Subpoena Looms,” The Hill’s E2 Wire, 10/28/11)

• “Of The 33 Deals That Have Been Completed So Far, 26 Were Direct Loans By The Government, Including The One To Solyndra, Said Energy Department Spokesman Damien Lavera.” (Erica Werner and Matthew Daly, “White House To Review Energy Department Loans,” The Associated Press, 10/28/11)

The U.S. Government Could Lose $2.7 Billion As A Result Of These Loans, According To A White House Commissioned Study. “The U.S. government could lose $2.7 billion as a result of the loans and loan guarantees it offered to clean-energy companies, according to a White House-commissioned study carried out in the wake of Solyndra LLC’s bankruptcy.” (Tennille Tracy, “Clean-Energy Aid Racks Up Losses,” The Wall Street Journal, 2/11/12)

The Review Looked At 30 Loans Or Loan Guarantees Totaling $23.8 Billion, But Did Not Involve Solyndra Or Beacon Power, Who Went Bankrupt And Cost The Government $567 Million. “The review, led by former Treasury Department official Herb Allison, looked at 30 loans or loan guarantees totaling $23.8 billion that were offered to green energy companies and auto makers such as Ford and Nissan. The review did not involve Solyndra or Beacon Power, an energy storage company that also went bankrupt after receiving a federal loan. The government has lost a total of $567 million from those two loans.” (Matthew Daly, “Report: Energy Loans Could Cost $3B,” The Associated Press, 2/10/12)

Energy Secretary Steven Chu Said It Was “Very Likely” That Other Companies Would Fail. “Energy Secretary Steven Chu said in a statement Friday that it was ‘very likely’ other companies backed by the government would fail, given the inherent risk of backing new technologies, but ‘the vast majority of companies are expected to pay the loans back in full, on time, and with about $8 billion in interest.’” (Tennille Tracy, “Clean-Energy Aid Racks Up Losses,” The Wall Street Journal, 2/11/12)

MANY D.O.E. LOAN RECIPIENTS HAVE FAILED OR ARE NOT MEETING EXPECTATIONS

Solyndra

Solyndra, Obama’s Poster-Child For “American Ingenuity And Dynamism,” Declared Bankruptcy. “The California-based Solyndra, which employed more than 1,000 people, declared bankruptcy earlier this month. President Obama visited the company in May of 2010, saying it was a prime example of ‘American ingenuity and dynamism.’” (Alexander Mooney, “White House Beats Back Claim It Pressured Loan To Now-Bankrupt Company.” CNN, 9/14/11)

• “Solyndra Was The Epitome Of What The Government Envisioned To Be Our Green Tech Future…” (David Louie, “Fremont Solar Panel Maker Solyndra Scales Back Expansion Plans,” The Oakland Tribune, 11/4/10)

Solyndra Was Offered The First Recovery Act Loan Guarantee, Receiving $535 Million From Taxpayers In March 2009, And Went Bankrupt In August 2011. (Solyndra, “Solyndra Offered $535 Million Loan Guarantee By The U.S. Department Of Energy,” Press Release, 3/20/09; Joe Stephens And Carol Leonnig, “House Republicans Step Up Solyndra Investigation,” The Washington Post, 9/1/11; George Avalos, “Fremont Solar Tech Firm Solyndra To Shut Down, Lay Off 1,100 Workers,” The San Jose Mercury News, 8/31/11)

In August 2011, Solyndra Announced That It Will File For Bankruptcy, “Immediately Laying Off 1,100 Employees.” “Solyndra, a Fremont solar tech manufacturer, announced Wednesday it is suspending operations and immediately laying off 1,100 employees. The company said it will also file for bankruptcy.” (George Avalos, “Fremont Solar Tech Firm Solyndra To Shut Down, Lay Off 1,100 Workers,” The San Jose Mercury News, 8/31/11)

Beacon Power

Beacon Power Was Awarded A $43 Million Federal Loan Guarantee In August 2010 To Build A 20-Megawatt Flywheel Energy-Storage Plant In Stephentown, NY. “In August 2010, Beacon Power was awarded a $43 million federal loan guarantee that the Tyngsboro, Mass., company used to put in place a 20-megawatt flywheel energy-storage plant in Stephentown, N.Y. The plant takes excess electric energy from the power grid and converts it into the energy of a spinning wheel, releasing it into the grid when needed. By June 30, the project had drawn down $38 million of the loan. Beacon also qualified for a $23 million grant from the DOE.” (Yuliya Chernova, “Renewable-Energy Firms Facing Financial Hurdles,” The Wall Street Journal, 10/27/11)

• “Beacon Drew Down $39.1 Million From A $43 Million DOE Loan Offer To A Beacon Subsdiary [sic] For Construction Of The 200-Flywheel Facility In Stephentown, N.Y., Outside Albany.” (“Rockland Capital Eyes Beacon Power,” The Associated Press, 2/7/12)

Beacon Power Filed For Bankruptcy In October 2011. “A Massachusetts company that received a $43 million Energy Department loan guarantee last year filed for bankruptcy Sunday, a step certain to fuel criticism of federal green energy financing in the wake of the solar company Solyndra’s collapse. Beacon Power Corp., which develops energy storage systems, filed for bankruptcy protection in the U.S. Bankruptcy Court in Delaware.” (Ben German, “Second Energy Department-Backed Company Goes Bankrupt,” The Hill, 10/31/11)

Richmond Times-Dispatch: Beacon Power’s $43 Million Loan Guarantee Can Be Added To The “Half-Billion-And-Change the Solyndra Flop Has Left Taxpayers On The Hook For.” ”’Second Energy Department-Backed Company Goes Bankrupt,’ reported the Hill the other day. Beacon Power of Massachusetts got a $43 million loan guarantee from the Energy Department before it went belly-up trying to make a buck in the energy-storage business. You can add that to the half-billion-and-change the Solyndra flop has left taxpayers on the hook for. Solyndra was supposed to be a one-off, according to administration supporters who blame the unique economics of the solar industry and Solydra’s approach to it, rather than the folly of corporate welfare, for the flop. Wonder what excuse they’ll come up with for Beacon.” (Editorial, “Crony Capitalism: More Solyndras,” Richmond Times-Dispatch, 11/25/11)

Beacon Power’s Rating Was Given Junk Bond Status. “Take Beacon Power — a green energy storage company. We were surprised to learn exactly what the Energy Department knew before committing $43 million of your tax dollars. Documents obtained by CBS News show Standard and Poor’s had confidentially given the project a dismal outlook of ‘CCC-plus.’ Asked whether he’d put his personal money into Beacon, economist Peter Morici replied, ‘Not on purpose.’ ‘It’s, it is a junk bond,’ Morici said. ‘But it’s not even a good junk bond. It’s well below investment grade.’” (Sharyl Attkisson, “Tax Dollars Backing Some ‘Risky’ Energy Projects,” CBS News, 1/13/12)

“Beacon … Sought Chapter 11 Protection On Oct. 30 In Delaware, Listing Assets Of $72 Million And Debt Totaling $47 Million, Including $39.1 Million Owed On A Government-Guaranteed Loan.” (Phil Milford and Dawn McCarty, “Ener1, Battery Maker, Seeks Chapter 11 Bankruptcy Protection,” Bloomberg, 2/8/12)

Fisker

Fisker Automotive Has Announced It Is Laying Off Workers To Try To Reserve Enough Capital In Order To Qualify For More Federal Help From The DOE. “In another setback for President Obama’s clean energy loan programs, the recipient of more than a half-billion dollars in federal loans is laying off workers at their Delaware and California operations. Delaware’s News Journal reports that Fisker Automotive, a California-based electric car start-up company, is laying off an undisclosed number of staff to try to reserve enough capital in order to qualify for more federal help from the Department of Energy, according to a Delaware state development official.” (Byron Tau, “Clean Energy Loan Recipient Lays Off Staff,” Politico, 2/6/12)

• The Layoffs Include 26 Workers At Its Wilmington, Delaware Plant And Another 40 Developing Its Luxury Car Line In Anaheim, California. “The layoffs include 26 workers at a former General Motors plant in Wilmington that Fisker is retooling to manufacture its Nina plug-in hybrid sedan. Another 40 contractors and employees who were working in design and development of Fisker’s Karma luxury car in Anaheim, Calif., also have been cut. The layoffs come as Fisker is seeking to renegotiate its loan agreement with the Department of Energy.” (“Electric Car Maker Fisker Announces Layoffs In Del., Calif. As It Renegotiates Loan Agreement,”The Associated Press, 2/6/12)

Fisker, Backed By More Than A Half-Billion Dollars In Loan Guarantees, Missed Early Manufacturing Goals And Has Pushed Back Plans For U.S. Production And Creation Of Thousands Of Jobs. “An electric car company backed by more than a half-billion dollars in Department of Energy loan guarantees has missed early manufacturing goals and has gradually pushed back plans for U.S. production and the creation of thousands of jobs.” (Carol D. Leonnig and Joe Stephens, “Fisker, Electric Carmaker Backed By $529 Million U.S. Loan, Balks At Solyndra Comparison,” The Washington Post, 10/21/11)

• Fisker’s Finnish Produced Luxury Model Failed To Meet A Promised Energy-Efficiency Standard. “This week, Fisker delayed until 2013 the production of the moderately priced family car it plans to build in Delaware. It also learned that its Finnish-produced luxury model, the $96,000 Karma, which is two years late in reaching U.S. markets, failed to meet a promised energy-efficiency standard.” (Carol D. Leonnig and Joe Stephens, “Fisker, Electric Carmaker Backed By $529 Million U.S. Loan, Balks At Solyndra Comparison,” The Washington Post, 10/21/11)
• In Applying For Federal Help, Fisker Promised To Sell 11,000 Karmas By The End Of September 2011. “In applying for the federal help, the company promised it would produce and sell at least 11,000 Karmas by the end of last month. Energy Department staff members declined to comment on changes between the conditional agreement and the final loan but said that number of cars is no longer required.” (Carol D. Leonnig and Joe Stephens, “Fisker, Electric Carmaker Backed By $529 Million U.S. Loan, Balks At Solyndra Comparison,” The Washington Post, 10/21/11)
• Experts Say There Is Little Room For Error If Fisker Hopes To Repay Its Loan. “Experts said there is little room for error if Fisker hopes to repay its $529 million loan. ‘There is a tremendous amount of risk associated with all of these electric vehicle companies,’ said Kevin C. See, an auto industry analyst with Lux Research in Boston. ‘There is a very real possibility that a lot of these players in the electric vehicle industry may not be there when this all shakes out.’” (Carol D. Leonnig and Joe Stephens, “Fisker, Electric Carmaker Backed By $529 Million U.S. Loan, Balks At Solyndra Comparison,” The Washington Post, 10/21/11)

Fisker, Who Received $529 Million In Federal Loan Guarantees, Manufactures Its Cars In Finland. “A $529 million federal loan guarantee to an electric car company manufacturing automobiles in Finland is drawing more unwanted attention to Energy Department loans. A report by ABC News on Thursday said Fisker, a startup electric car company, is making cars in Finland after receiving the loan because it could not find a contractor in America to actually manufacture its electric vehicles.” (Keith Laing, “Energy Defends Loans For Electric Cars,” The Hill, 10/21/11)

Tesla

Obama’s Department Of Energy Loaned Tesla Motors $465 Million In June 2009. “The Obama Administration will lend Tesla Motors $465 million to build an electric sedan and the battery packs needed to propel it. It’s one of three loans totaling almost $8 billion that the Department of Energy awarded Tuesday to spur the development of fuel-efficient vehicles.” (Chuck Squatriglia, “Feds Lend Tesla $465 Million To Build Electric Car,” CNN, 6/23/09)

• In April 2011, Obama Admitted That The Average Person “Can’t Afford To Buy The Tesla.” “‘Right now we’ve got $4-a-gallon gas, and most of the people under this tent don’t have to worry about that,’ Obama said at a fundraiser with wealthy donors Wednesday in San Francisco. ‘But for the average person who has to drive 50 miles to work and can’t afford to buy the Tesla’ — a premium electric vehicle that starts at $101,000 — ‘it’s hammering them. It’s hurting them. So there’s a huge economic imperative.’” (Carrie Budoff Brown, “Barack Obama Talks Deficit, Voters Talk Gas Prices,” Politico, 4/22/11)
• Despite Federal Funding, Tesla Has Lost Money Every Quarter. “Tesla’s SEC filings reveal the start-up has lost money every quarter. And while its federal funding is intended to help it mass produce a new $57,400 Model S sedan, the company has no experience in a project so vast.” (Matthew Mosk and Brian Ross, “Car Company Gets U.S. Loan, Builds Cars In Finland,” ABC News, 10/20/11)
• A GAO Audit Criticized The DOE For Failing To Monitor The Success Of Its Loan To Tesla. “Yet an audit this year by the Government Accountability Office, the investigative arm of Congress, criticized the Energy Department for not keeping close enough tabs on its fleet of auto loans — including those to Fisker and Tesla — to ensure they meet benchmarks.” (Matthew Mosk and Brian Ross, “Car Company Gets U.S. Loan, Builds Cars In Finland,” ABC News, 10/20/11)
• Tesla Had “Significant Delays” In Launching Its First Car And Admits That It Will Face Difficulty In Launching Its Second Model, Both Financed By Taxpayer Funds. “It has no experience in high-volume manufacturing of electric cars, its filings say — the very project it sees as the road toward profitability. Tesla said it encountered ‘significant delays’ in launching the Roadster – and acknowledges that developing the Model S will be a more complex undertaking. The newer car is the project financed by DOE.” (Matthew Mosk and Brian Ross, “Car Company Gets U.S. Loan, Builds Cars In Finland,” ABC News, 10/20/11)

• As Of June 30, 2011, Tesla Had Lost $522.8 Million. “Tesla has yet to turn a profit and suffered net losses in each quarter. ‘Since inception and through the three and six months ended June 30, 2011, we had accumulated net losses of $522.8 million,’ its most recent 10-K form shows.” (Matthew Mosk and Brian Ross, “Car Company Gets U.S. Loan, Builds Cars In Finland,” ABC News, 10/20/11)

• “‘We Have No Experience To Date In High Volume Manufacturing Of Our Electric Vehicles,’ Tesla’s SEC Filings Say.” (Matthew Mosk and Brian Ross, “Car Company Gets U.S. Loan, Builds Cars In Finland,” ABC News, 10/20/11)

SunPower

SunPower Received A $1.2 Billion Loan Guarantee Immediately Before The DOE Program’s Deadline. “As failed solar panel manufacturer Solyndra rides through the investigative ringer in Congress, revelations of another politically-connected company that received what appears to be a less-than-virtuous $1.2 billion loan guarantee are surfacing. The company, SunPower, received its $1.2 billion loan guarantee in September, immediately before the program’s deadline.” (Matthew Boyle, “Solar Company With $1.2 Billion Taxpayer Loan Guarantee, Political Connections Exhibits Signs Of Financial Trouble,” The Daily Caller, 10/11/11)

• “SunPower Isn’t As Financially Sound As The Public Was Led To Believe When It Secured A Loan Guarantee Twice The Size Of Solyndra’s $535 Million Loan.” “SunPower isn’t as financially sound as the public was led to believe when it secured a loan guarantee twice the size of Solyndra’s $535 million loan. Just this week — less than a month after taxpayers landed on the hook for SunPower’s $1.2 billion loan guarantee — company executives announced that they expect to lower their 2011 earnings projections.” (Matthew Boyle, “Solar Company With $1.2 Billion Taxpayer Loan Guarantee, Political Connections Exhibits Signs Of Financial Trouble,” The Daily Caller, 10/11/11)
• “The Company Also Carries $820 Million In Debt, Which Is $20 Million More Than Its Market Capitalization.” (Matthew Boyle, “Solar Company With $1.2 Billion Taxpayer Loan Guarantee, Political Connections Exhibits Signs Of Financial Trouble,” The Daily Caller, 10/11/11)
• Right Before The Loan Was Finalized, The Project Was Sold To NRG, Which Announced It Was Opening A New Facility In Mexico To Manufacture Solar Panels. “The Obama administration — which says it was continuing to vet SunPower after it granted the company a conditional commitment for the $1.2 billion loan guarantee — saw the company as promising and continued to move forward. Then, right before the Obama administration signed the deal giving SunPower its $1.2 billion loan guarantee, SunPower and Total S.A. sold the project — which taxpayers are now responsible for — to NRG Energy, Inc. The loan guarantee still went through, despite the sudden pullout from Total S.A. Mere weeks before finalizing the deal with the Department of Energy, SunPower announced it was opening a new facility in Mexicali, Mexico — instead of another one in the United States — in order to manufacture solar panels there too.” (Matthew Boyle, “Solar Company With $1.2 Billion Taxpayer Loan Guarantee, Political Connections Exhibits Signs Of Financial Trouble,” The Daily Caller, 10/11/11)

“On Its Last Financial Statement, SunPower Owed More Than It Was Worth.” (Sharyl Attkisson, “Tax Dollars Backing Some ‘Risky’ Energy Projects,” CBS News, 1/13/12)

Nevada Geothermal

Nevada Geothermal Power (NGP) Received A $98.5 Million Loan Guarantee And Has Never Operated Profitably And Is At Risk Of Failing. “Nevada Geothermal Power (NGP) said in its financial filings that it has never operated profitably and that the company is at risk of failing as a going concern.  … NGP received a $98.5 million loan guarantee under the same program that awarded solyndra a loan guarantee.” (Aamer Madhani, “Profits Elude Geothermal Companies,” USA Today, 10/6/11)

NGP Has Never Reached Forecasted Production. “NGP operates a geothermal plant called Blue Mountain that was forecast to produce about 45 megawatts, but has only reached 35 megawatts of power—not enough production to cover the company’s loans and overhead.” (Aamer Madhani, “Profits Elude Geothermal Companies,” USA Today, 10/6/11)

NRG “Warns Of Multiple Defaults” In Its SEC Filings And Was “Already Having Trouble Paying The Bills.” “Others are also struggling with potential problems. Nevada Geothermal — a home state project personally endorsed by Senate Majority Leader Harry Reid –  warns of multiple potential defaults in new SEC filings reviewed by CBS News. It was already having trouble paying the bills when it received $98.5 million in Energy Department loan guarantees.” (Sharyl Attkisson, “Tax Dollars Backing Some ‘Risky’ Energy Projects,” CBS News, 1/13/12)

U.S. Geothermal

U.S. Geothermal, Which Received A $97 Million DOE Loan In February 2011, Has Not Made A Profit In Four Years. “A third company, U.S. Geothermal, received a $97 million energy department loan in February. Its filings with the federal securities and exchange commission show that it has not made a profit in the past four years.” (Aamer Madhani, “Profits Elude Geothermal Companies,” USA Today, 10/6/11)

U.S. Geothermal Took A $1.5 Million Net Loss Last Quarter And A Nine Month Net Loss Of $4.7 Million.“Boise energy developer U.S. Geothermal Inc. took a $1.5 million net loss — 2 cents per share — in the quarter ending Dec. 31, 2011, according to records filed Thursday with the Securities and Exchange Commission. The company reported a net loss of about $827,000 — 1 cent per share — in the same quarter last year. It reported a net loss for the nine months ending Dec. 31, 2011, of $4.7 million, or 5 cents per share, which was a 45.7 percent increase from the same period in 2010.” (“Boise Energy Developer U.S. Geothermal Reports Quarterly Loss.” Idaho Statesman, 2/10/12)

MANY OTHER OBAMA GREEN ENERGY INVESTMENTS HAVE BACKFIRED

“First Solar Was The Biggest S&P 500 Loser In 2011 And Its CEO Was Cut Loose – Even As Taxpayers Were Forced To Back A Whopping $3 Billion In Company Loans.” (Sharyl Attkisson, “Tax Dollars Backing Some ‘Risky’ Energy Projects,” CBS News, 1/13/12)

Evergreen Solar Inc. Received $5.3 Million In Stimulus Grants. “Evergreen Solar Inc., reportedly received $5.3 million of stimulus cash through a state grant to install 11,000 photovoltaic panels installed at 11 colleges and universities, a recycling facility and an education center in Massachusetts.” (“Solyndra Not Sole Firm to Hit Rock Bottom Despite Stimulus Funding,” FoxNews.com, 9/15/11)

• In August 2011, Evergreen Solar Filed For Bankruptcy.  “Evergreen Solar Inc. (ESLR), a maker of electricity generating solar panels, filed bankruptcy with plans to sell itself at an auction in order to pay creditors owed $485.6 million.” (Steven Church, “Evergreen Solar Seeks Bankruptcy With Plans TO Sell Itself,” Bloomberg, 8/15/11)
• In January, Evergreen Solar Inc. Announced It Will Eliminate 800 Massachusetts Workers.  “Evergreen Solar Inc. will eliminate 800 jobs in Massachusetts and shut its new factory at the former military base in Devens, just two years after it opened the massive facility to great fanfare and with about $58 million in taxpayer subsidies.”  (Todd Wallack, “Plan Will Shut After $58M In State Aid,” The Boston Globe, 1/12/11)
• “Since 2010, Evergreen Has Been The Worst-Performing Company On The Bloomberg Global Leaders Solar Index.” (Steven Church, “Evergreen Solar Seeks Bankruptcy With Plans TO Sell Itself,” Bloomberg, 8/15/11)

Spectrawatt, Which Received A $500,000 Stimulus Grant, Filed For Bankruptcy In August 2011. “SpectraWatt, based in Hopewell Junction, N.Y., is also a solar cell company that was spun out of Intel in 2008. In June 2009, SpectraWatt received a $500,000 grant from the National Renewable Energy Laboratory as part of the stimulus package. SpectraWatt was one of 13 companies to receive the money to help develop ways to improve solar cells without changing current manufacturing processes.” The company filed for bankruptcy last month, saying it could not compete with its Chinese competitors, which receive “considerable government and financial support.’” (“Solyndra Not Sole Firm to Hit Rock Bottom Despite Stimulus Funding,” FoxNews.com, 9/15/11)

• “In A Stunning Reversal, The Frequently Lauded And Taxpayer-Funded SpectraWatt Inc. Has Told The State It Will Close Its Solar Cell Plant Starting In March And Lay Off 117 Workers.” (Craig Wolf, “Solar Cell Maker SpectraWatt Plans Shutdown,” The Poughkeepsie Journal, 12/22/10)

Raser Technologies, Which Received A $33 Million Treasury Department Grant, Filed For Chapter 11 Bankruptcy. Raser Technologies, a Utah company, filed for Chapter 11 bankruptcy protection this year after burning through hundreds of millions of investor financing and a $33 million Treasury Department grant that was awarded to the company in 2010. (Aamer Madhani, “Profits Elude Geothermal Companies,” USA Today, 10/6/11)

Ener1, An Energy Storage Company That Received A $118.5 Million Stimulus Grant, Filed For Bankruptcy. “An Indiana-based energy-storage company that received a $118.5 million stimulus grant from the Energy Department filed for bankruptcy Thursday. Ener1 is asking a federal bankruptcy court in New York to approve a plan to restructure the company’s debt and infuse $81 million in equity funding.” (Andrew Restuccia, “Obama-Backed Electric Car Battery-Maker Files For Bankruptcy,” The Hill’s E2 Wire, 1/26/12)

• “The Energy Department In 2009 Approved A $118.5 Million Stimulus Grant For Enerdel, A Subsidiary Of The Company That Develops Lithium-Ion Batteries Used In Electric Vehicles.” (Andrew Restuccia, “Obama-Backed Electric Car Battery-Maker Files For Bankruptcy,” The Hill’s E2 Wire, 1/26/12)
• A Year After Receiving A $118 Million Grant, Ener1 Inc. Posted Its Earnings For Fiscal 2010 At A $165 Million Loss. “Following on Solyndra’s great success comes Ener1 Inc., a lithium-ion battery maker also promoted by the White House. President Obama gave the company’s subsidiary, EnerDel, a shout out in August 2009, in a speech in which he announced $2.4 billion in grants ‘to develop the next generation of fuel-efficient cars and trucks powered by the next generation of battery technologies.’ EnerDel snagged a $118 million grant, and Vice President Joe Biden toured one of its two Indianapolis-area factories as recently as January, citing it as proof that government isn’t ‘just creating new jobs—but sparking whole new industries.’ He didn’t say profitable industries. Ener1 was founded in 2002, went public in 2008 and has never turned a profit. In August, it restated its earnings for fiscal 2010 at a $165 million loss—nearly $100 million more than previously reported. On September 27 it ousted its CEO, and its share price yesterday was 27 cents—a 95% decline from its 52-week high of $5.95 in January. Nasdaq is threatening to delist the stock, and Ener1 disclosed in a mid-August filing with the Securities and Exchange Commission that it is ‘in the process of determining whether the company has sufficient liquidity to fund its operations.’” (Editorial, “Your Cash Fr Their Clunkers,” The Wall Street Journal, 10/20/11)
• Ener1 Filed For Bankruptcy Protection After Defaulting On Bond Debt, While Listing Assets Of $73.9 Million And Debt Of $90.5 Million. “Ener1 Inc., the owner of a company that received a $118 million U.S. Energy Department grant to make electric-car batteries, filed for bankruptcy protection after defaulting on bond debt amid heavy competition from Asia. The company listed assets of $73.9 million and debt of $90.5 million as of Dec. 31 in Chapter 11 papers filed today in U.S. Bankruptcy Court in Manhattan.”(Phil Milford and Dawn McCarty, “Ener1, Battery Maker, Seeks Chapter 11 Bankruptcy Protection,” Bloomberg, 2/8/12)

Amonix Inc., A California-Based Solar Company, Announced It Would Lay Off 200 Of Its Employees At Its North Las Vegas Solar Power Manufacturing Plant. “Just seven months after California-based solar power company Amonix Inc. opened its largest manufacturing plant, in North Las Vegas, the company’s contractor has laid off nearly two-thirds of its workforce. Flextronics Industrial, the Singapore solar panel manufacturer that partnered with Amonix to staff the new $18 million, 214,000-square-foot plant, laid off about 200 of its 300-plus employees Tuesday.” (Justin M. Bowen, “Some 200 Laid Off At North Las Vegas Amonix Solar Plant,” Las Vegas Sun, 1/26/12)

• In 2010, Amonix Received A $5.9 Million Federal Stimulus Tax Credit. “Amonix received a $5.9 million investment tax credit through the American Reinvestment and Recovery Act in 2010, and another $12 million in private capital helped finance the plant.” (Justin M. Bowen, “Some 200 Laid Off At North Las Vegas Amonix Solar Plant,” Las Vegas Sun, 1/26/12)
• At The Time In 2010, Obama Cited Amonix’s Example To Support His Program Of Clean Energy Investments. OBAMA: “A solar panel company — a solar power company called Amonix received a roughly $6 million tax credit for a new facility they’re building in the Las Vegas area -– a tax credit they were able to match with roughly $12 million in private capital.  That’s happening right now.  And that’s just one of over, that’s just one of over 180 projects that received manufacturing tax credits in over 40 states. Now, here’s the — the only problem we have is these credits were working so well, there aren’t enough tax credits to go around. Now, here’s the — the only problem we have is these credits were working so well, there aren’t enough tax credits to go around.  There are more worthy projects than there are tax credits.  When we announced the program last year, it was such a success we received 500 applications requesting over $8 billion in tax credits, but we only had $2.3 billion to invest.  In other words, we had almost four times as many worthy requests as we had tax credits.” (President Barack Obama, Remarks At University Of Las Vegas, Las Vegas, NV, 7/9/10)

OBAMA’S INVESTMENTS IN ELECTRIC VEHICLES HAVE ALSO FAILED

In 2008, Obama Promised As President To Put “One Million 150 Mile-Per-Gallon Plug-In Hybrid Cars On Our Roads Within Six Years.” OBAMA: “First, we’ll commit ourselves to getting one million 150 mile-per-gallon plug-in hybrid cars on our roads within six years. And we’ll make sure these cars are built not in Japan, not in China, but right here in the United States of America.” (Sen. Barack Obama, Remarks At A Town Hall, Youngstown, OH, 8/5/08)

The Washington Post: “Evidence Is Mounting That President Obama Was Overly Optimistic To Pledge That There Would Be 1 Million EVs On The Road By 2015.” (Editorial, “Overcharged,” The Washington Post, 1/1/12)

• WaPo: “They Simply Pose Too Many Issues Of Price And Practicality To Attract A Large Segment Of The Car-Buying Public.” “They simply pose too many issues of price and practicality to attract a large segment of the car-buying public. More prosaic fuel-economy innovations such as conventional hybrids, clean-diesel cars and advanced gasoline engines all show much more promise than electrics.” (Editorial, “Overcharged,” The Washington Post, 1/1/12)
• WaPo: “Sales Of Electric Vehicles Were Disappointing In 2011 …” “Sales of electric vehicles were disappointing in 2011, with the Volt coming in below the 10,000 units forecast. In addition to its high price, the Volt brand is suffering from news that some of its batteries burst into flames after government road tests.” (Editorial, “Overcharged,” The Washington Post, 1/1/12)

Taxpayers May Not See A Return On The $5 Billion In Taxpayer Funds Obama Poured Into The Electric-Car Industry. “The Obama administration has poured roughly $5 billion in taxpayer funds into the electric-car industry, offering incentives to manufacturers, their suppliers and even car buyers who might want to go green. But analysts say the risk is rising that taxpayers in many cases will not see a return on their money soon, if ever. Instead, they warn that some federally subsidized companies could be forced to shut down in coming months.” (Carol D. Leonnig, and Joe Stephens, “For Obama’s Green-Car Revolution, Fits And Starts,” The Washington Post, 12/7/11)

Obama Predicted Green Cars Would Create Thousands Of Jobs, But Production And Sales Expectations Have Been Dramatically Scaled Back. “Obama predicted in 2008 that green cars would create thousands of new U.S. jobs as demand soared. But in recent months, production lines and sales expectations have been dramatically scaled back.” (Carol D. Leonnig, and Joe Stephens, “For Obama’s Green-Car Revolution, Fits And Starts,” The Washington Post, 12/7/11)

• Obama Predicted That A123 Systems, A Battery Maker That Received $380 Million, Would Create 3,000 Jobs, But Has Only 690 Employees And Has Announced Forced Layoffs. “A123 Systems, a battery maker that received $380 million in government support, announced recently that declining orders had forced layoffs. Instead of up to 3,000 new Michigan jobs as Obama and the company had predicted, it now has 690 employees.” (Carol D. Leonnig, and Joe Stephens, “For Obama’s Green-Car Revolution, Fits And Starts,” The Washington Post, 12/7/11)
• “Battery Maker Enerdel, Recipient Of A A [sic] $118 Million Federal Grant, Took A Hit When Its Key Customer, Electric-Car Maker Think, Declared Bankruptcy This Year.” (Carol D. Leonnig, and Joe Stephens, “For Obama’s Green-Car Revolution, Fits And Starts,” The Washington Post, 12/7/11)
• “Johnson Controls, Which Received A $299 Million Stimulus Grant, Opted To Build One Factory Instead Of Two Because Of Lower-Than-Projected Demand, A Company Official Said, And That One Is Now Operating At Half Capacity.” (Carol D. Leonnig, and Joe Stephens, “For Obama’s Green-Car Revolution, Fits And Starts,” The Washington Post, 12/7/11)
• “California Electric-Car Maker Aptera Announced It Was Shutting Its Doors Because Of Problems Raising Capital.” (Carol D. Leonnig, and Joe Stephens, “For Obama’s Green-Car Revolution, Fits And Starts,” The Washington Post, 12/7/11)
• GM Announced That Its Volt Would Fall Roughly 38 Percent Shy Of Its Goal Of Selling 10,000 Cars This Year. “And General Motors — whose moderately priced Volt was supposed to drive Obama’s push for 1 million alternative vehicles by 2015 — revealed last week that it would fall roughly 38 percent shy of its goal of selling 10,000 Volts this year.” (Carol D. Leonnig, and Joe Stephens, “For Obama’s Green-Car Revolution, Fits And Starts,” The Washington Post, 12/7/11)