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Obama’s Energy Bust

- February 28, 2012

After Four Years Of Broken Promises And Higher Energy Costs, America Has Been Left With No Real Energy Policy

OBAMA HAS NO ENERGY POLICY

NBC News’ Chuck Todd Said There’s “No Issue That Has Been … A Bigger Bust For The President Than Energy Policy In General.” MSNBC’s CHUCK TODD: “Very quickly, president’s going down to Miami to give an energy speech. Nia, you’ve been with me, I feel like, on the front lines covering the president from the day he took office. There is no issue that has been a, I guess, a bigger bust for the president than energy policy in general. There’s a lot of, we can come up with a lot of excuses as to why, but boy, it’s just like you can’t – he’s made no progress.” THE WASHINGTON POST’s NIA-MALIKA HENDERSON: “No, he’s made no progress. I remember covering him on the campaign and he would talk about, you know, turning these manufacturing plants into wind turbine plants and it seemed to work then, but, you know, in terms of the reality and on the ground actually success during his presidency, absolutely none.” (MSNBC’s  "The Daily Rundown,"  2/23/12)

In June 2011, Obama Said He’s Failed On Energy, Saying His Energy Policy Is Just A “Hodgepodge.” OBAMA: “Our energy policy still is just a hodgepodge, and for all the progress we’ve made, we’re not where we need to be in making sure that this is an energy-efficient economy that is running on all cylinders.”(President Barack Obama, Remarks By The President At A DNC Event, Miami, FL, 6/13/11)

OBAMA WAS WRONG TO REJECT THE KEYSTONE PIPELINE

“In A Politically Explosive Decision,” Obama Rejected The Keystone Pipeline, Delaying A Tough Choice Until After The November Elections. “In a politically explosive decision, President Barack Obama on Wednesday rejected plans for a massive oil pipeline through the heart of the United States, ruling there was not enough time for a fair review before a looming deadline forced on him by Republicans. His move did not kill the project but could again delay a tough choice for him until after the November elections.” (Ben Feller and Matthew Daly, “Obama Rejects Canada-Texas Oil Pipeline-For Now,” The Associated Press, 1/18/12)

The Decision To Kill Keystone Was “No Brainer Election-Year Politics” To Appease The Democrat Donor Base And Environmental Advocates. “The decision was predictable simply because it was politically beneficial to all parties involved as they gear up for a 2012 campaign likely to be decided by voter enthusiasm and untold corporate millions, operatives on both sides of the issue say. The GOP has an issue that resonates with independents paying $3.50 a gallon for gas and the petroleum industry likely to pump millions into Republican campaigns and super PACs. And for all the pounding he’s taking from Republicans, industry and labor unions, Obama’s decision Wednesday is no-brainer election-year politics. Democrats outside the West Wing and Chicago-based campaign say the politics were clear: With the exceptions of the grousing unions (who will have no choice but to support him in 2012), the party’s donor base, environmental advocates down to their hybrid SUVs oppose the pipeline.” (Glenn Thrush and Darren Samuelsohn,” Politico, 1/18/12)

“The Keystone Cop-Out Couldn’t Be A Clearer Expression That This Administration Puts Its Anticarbon Obsessions—And Big Green Campaign Donors—Above Job Creation And Blue-Collar Construction Workers.” (Editorial, “Keystone Cop-Out,” The Wall Street Journal, 11/14/11)

Laborers’ International Union of North America: “Instead of celebrating their victory by hugging a tree they should hug a jobless construction worker because they’re the ones who are going to need it.” (Laborers’ International Union of North America , “Job-Killers, 2; American Workers, 0,” Press Release, 1/18/12)

  • Laborers’ International Union of North America Called Obama’s Decision “Politics At Its Worst.” “‘The score is Job-Killers, two; American workers, zero. We are completely and totally disappointed. This is politics at its worst,’ LIUNA General President Terry O’Sullivan said.” (Laborers’ International Union of North America , “Job-Killers, 2; American Workers, 0,” Press Release, 1/18/12)
  • “Once Again The President Has Sided With Environmentalists Instead Of Blue Collar Construction Workers – Even Though Environmental Concerns Were More Than Adequately Addressed. Blue Collar Construction Workers Across The U.S. Will Not Forget This.” (Laborers’ International Union of North America , “Job-Killers, 2; American Workers, 0,” Press Release, 1/18/12) 

Keystone Would Create Thousands Of Jobs While Increasing U.S. Energy Independence

The Pipeline Would “Produce 20,000 Construction Jobs And 100,000 Indirect Jobs.”  “Gary Doer, the Canadian ambassador to the United States, said building the pipeline would produce 20,000 construction jobs and 100,000 additional indirect jobs in services and supplies. ‘It’s good for the U.S. economy, U.S. jobs and U.S. energy security,’ he said. ‘If you ask Americans, would you choose Canada over the Middle East, they’d say yes.’” (John M. Broder & Clifford Krauss, “U.S. Offers Key Support To Canadian Pipeline,” The New York Times, 8/26/11)

  • Four Labor Unions Reached A Tentative Agreement To Build The Pipeline Because They Say It Will Directly Create As Many As 20,000 High Wage Jobs For Their Members. “In September 2010, four unions - the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada; the Laborers International Union of North America; the Teamsters; and the International Union of Operating Engineers - reached a tentative project labor agreement with TransCanada to build the pipeline, which is now finalized. They say the project will directly generate as many as 20,000 high-wage jobs for their members.” (Juliet Eilperin and Steven Mufson, “A Pipeline Predicament For Obama,” The Washington Post, 10/17/11)

“The Oil From Canada Could Ultimately Supplant Much Of The Oil The United States Imports From The Middle East And Other Unstable Regions. It Could Give The Country A Measure Of Energy Security.” (Editorial, “Pipeline Delay An Insult To Jobless,” The Detroit News, 11/14/11)

According To A State Department Report, Pipeline Is “Needed” To Maintain Supplies As Imports Decline.  “The pipeline is needed to maintain supplies of heavy crude oil to Gulf Coast refineries as imports decline, according to today’s State Department report.” (David Lerman & Jim Efstathiou Jr., “TransCanada Pipeline’s Environment Risk Limited, U.S. Finds,” Bloomberg, 8/26/11)

OBAMA HAS FAILED TO REIN IN HIGH GAS PRICES

In 2008, Obama Promised To Solve The Energy Crisis

Obama In 2008: “As President, I Will Work To Solve This Energy Crisis Once And For All.” OBAMA: “Everywhere I go in Indiana, and across this country, I'm talking to folks who are working harder and harder just to get by. At a time when our economy is in turmoil and wages are stagnant, hardworking families are struggling to pay rising costs, and few costs obviously are rising faster than the ones people pay at the pump. For the well-off in this country, high gas prices are mostly an annoyance, but to most Americans, they're a huge problem, bordering on a crisis. Here in Indiana, gas costs $3.60 a gallon - and across the country, gas costs more than at any time in almost thirty years. … And as President, I will work to solve this energy crisis once and for all. We'll invest $150 billion over the next ten years in establishing a green energy sector that will create up to 5 million new jobs - and those are jobs that pay well and can't be outsourced. We'll invest in clean energies like solar, wind, and biodiesel. And we'll help make sure that the fuel we're using is more efficient.” (Sen. Barack Obama, Remarks On Energy Plan,, Indianapolis, IN, 4/25/08) 

Gas Prices Are The Highest They Have Ever Been At This Time Of The Year

With Gas Prices Reaching More Than $3.50 A Gallon, The “Highest They’ve Ever Been This Time Of Year,” The Obama White House Is Forced To Play “Defense” On Gas Prices. “The White House seemed to play defense today against Republican presidential candidates criticizing President Obama’s handling of gas prices, which at more than $3.50 per gallon, are the highest they’ve ever been this time of year.” (Ali Weinberg, “White House On Defense Over Gas Prices,” MSNBC’s First Read, 2/20/12)

  • The Average Price Of Regular Unleaded Gasoline Was $1.89 When Obama Took Office. “The average price of regular unleaded gasoline was $1.89 a gallon the week Barack Obama took office in January 2009, according to the Energy Information Administration. That was in the middle of the recession. On Monday, it was $3.52, according to EIA.” (Dan Berman and Darren Goode, “GOP Pounces As Gas Prices Climb,” Politico, 2/16/12)

The Associated Press: “Gas Prices Are Highest Ever For This Time Of Year.” (Chris Kahn, “Gas Prices Are highest Ever For This Time Of Year,” The Associated Press, 2/19/12)

The National Average For Regular Gasoline Has Never Seen Gas Prices Rise Above $3.50 A Gallon This Early In The Year, As The National Average Hit $3.523 In February. “U.S. motorists have seen the national average for regular gasoline rise above $3.50 a gallon in just three different years, but it has never happened this early. The national average hit $3.523 a gallon, the Energy Department said Monday, up 4.1 cents from a week earlier.” (Ronald D. White, “Never Before Have Gas Prices Risen So High So Early In The Year,” Los Angeles Times, 2/14/12)

“Analysts Said The Early Price Shocker Is Likely A Sign That Pain At The Pump Will Rise To Some Of The Highest Levels Ever This Year.” (Ronald D. White, “Never Before Have Gas Prices Risen So High So Early In The Year,” Los Angeles Times, 2/14/12)

The Average Price For A Gallon Of Regular In The Midwest Is Up 32 Cents From A Year Ago And $1.59 More Than The Day Obama Took Office. “The average price for a gallon of regular gas in the Midwest was $3.41 last week, up 32 cents from a year ago and $1.59 more than the day Obama became president.” (Dave Helling, “Higher Gasoline Prices Could Stall Recovery, Obama’s Reelection,” Boston Herald, 2/21/12)

“Nationally, Drivers Started This Week Paying On Average $3.565 For A Gallon Of Regular Gas, Up More Than 5% In The Last Month.” (Don Lee and Matt Stevens, “Surging Prices Threaten To Derail Economic Recovery,” Los Angeles Times, 2/20/12)

 “2011 Closed Out As The Year With The Highest Average Annual Oil Price In The 150-Year History Of The Modern Oil Industry” And U.S. Gasoline Process Hit An All Time Record Annual High For A Gallon Of Regular. “Already, 2011 closed out as the year with the highest average annual oil price in the 150-year history of the modern oil industry at $111 for a barrel of Brent crude, 13 percent higher than the previous record of $98 a barrel in 2008. U.S. gasoline prices also reached a record annual average high at $3.52 for a gallon of regular.” (Coral Davenport, “Rising Oil Prices Could Fuel Political Rage,” National Journal, 1/7/12)

Obama Is Out Of Touch With Americans Struggling At The Pump

In 2008, Obama Said He Would Have Preferred A Gradual Increase In Gas Prices. OBAMA: “Well, I think that we have been slow to move in a better direction when it comes to energy usage. And the president, frankly, hasn't had an energy policy. And as a consequence, we've been consuming energy as if it's infinite. We now know that our demand is badly outstripping supply with China and India growing as rapidly as they are. So...” CNBC’s JOHN HARWOOD: “So could these high prices help us?” Obama: “I think that I would have preferred a gradual adjustment. The fact that this is such a shock to American pocketbooks is not a good thing.” (CNBC’s “Your Money, Your Vote,” 6/10/08)

  • Obama In 2008: “[O]bama Suggested That The Main Problem With High Gasoline Prices Is Their Rapid Rise, Not Their Total Of About $4 A Gallon.” (Charles Babington and Jim Kuhnhenn, “One Down, More To Go For Republicans Aiding McCain,” The Associated Press, 6/12/08)

Obama Thought That Americans Could “Adapt” To Higher Gas Prices. “But if the government gives middle-class families tax cuts and encourages the market ‘to adapt to these new circumstances more quickly, particularly U.S. automakers, then I think ultimately, we can come out of this stronger and have a more efficient energy policy than we do right now.’” (Charles Babington and Jim Kuhnhenn, “One Down, More To Go For Republicans Aiding McCain,” The Associated Press, 6/12/08)

In 2008, Energy Secretary Chu Said “Somehow We Have To Figure Out How To Boost The Price Of Gasoline To The Levels In Europe.” “In a sign of one major internal difference, Mr. Chu has called for gradually ramping up gasoline taxes over 15 years to coax consumers into buying more-efficient cars and living in neighborhoods closer to work. ‘Somehow we have to figure out how to boost the price of gasoline to the levels in Europe,’ Mr. Chu, who directs the Lawrence Berkeley National Laboratory in California, said in an interview with The Wall Street Journal in September.” (Neil King Jr. and Stephen Power, “Times Tough For Energy Overhaul,” The Wall Street Journal, 12/12/08)

OBAMA’S POLICIES HAVE NOT INCREASED FEDERAL OIL PRODUCTION OR DECREASED FOREIGN OIL DEPENDENCE

Obama Oversells The Government’s Influence On The Energy Industry And Many Wells Coming In To Production Were Planned Before He Was President. “Obama is not only hoping that simple, rock-solid statistic will silence his GOP critics, he's angling to get some credit for the trend as he navigates a tricky re-election campaign. But he oversells the government's influence on the industry and ignores the fact that many wells coming into production were planned years ago, before he was president.” (Dina Cappielo, “FACT CHECK: Obama, GOP Spin Recent Energy Stats,” The Associated Press, 2/6/12)

“He Doesn’t Want To Admit It, But President Obama Is Taking Credit For Something George W. Bush Did. The White House Is Touting Federal Data That Shows Domestic Oil Production Is At Its Highest Level Since 2003.” (Amy Harder, “Obama’s Fuzzy Oil Production Math,” National Journal, 3/17/11)

  • For 2009 And 2010, Oil Production Numbers Are Due To Actions Taken Before Obama Became President, Especially Since He Didn’t Take Any Major Action To Expand Offshore Drilling In His First Year. “While Bush was in office from 2001 to 2009, the oil and gas industry saw many new leases and other expanded drilling opportunities. In March 2010, Obama announced plans to expand offshore drilling, but he retreated in the aftermath of the BP oil spill. According to EIA’s short-term 2011 outlook, released last week, oil production was significantly higher in 2009 than in the years prior. Obama may have been in office for most of that year, but the oil production numbers are due to action taken before he became president. In 2010, most if not all of the production increase recorded is likely due to action that predates Obama, since Obama didn’t take any major action expanding offshore drilling his first year in office.” (Amy Harder, “Obama’s Fuzzy Oil Production Math,” National Journal, 3/17/11)

Rep. Dan Boren (D-OK) Said The Increase In Oil Production In The U.S. “Doesn’t Have Anything To Do With The Government.” FOX NEWS’ WILLIAM LA JEUNESSE: “Critics say the president is taking credit he doesn't deserve since new oil well takes five to 15 years to come online and most U.S. production gains have come off private not federal land.” REP. DAN BOREN (D-OK): “That's really why you're seeing an increase in production that doesn't have anything to do with government.” (Fox News’ "Special Report," 2/20/12)

It Is “Absolutely Not True” That Obama’s Policies Have Helped Wean The U.S. From Foreign Oil. “When asked, though, whether the Obama administration's policies have helped wean the U.S. from foreign oil, Gheit was equally emphatic. ‘Absolutely not true,’ Gheit said. ‘It was all market driven and all through American ingenuity….It was no thanks to Washington, not thanks to lobbyists, not thanks to anybody.’” (Josh Gerstein, “What Obama’s First Ad Doesn’t Say,” Politico’s "Under The Radar", 1/19/12)

A “Variety Of Factors” Have Lead To A Decrease In Dependence On Foreign Oil, “Most Of Them Outside Obama’s Control.” “The ad also states, “For the first time in 13 years, our dependence on foreign oil is below 50 percent.” But again, it’s questionable how much credit Obama gets for that. The same Energy Information Administration report cited in the ad concluded that the downward trend began in 2005 and was based on a “variety of factors,” most of them outside Obama’s control.” (“AdWatch: Obama’s 1st Campaign TV Ad Defends His Energy Record Without Feel-Good Images,” The Associated Press, 1/20/12)

A Decrease In Dependence On Foreign Oil Is “Not Tethered To Anything Obama Has Done” And Is Due To Factors “Before Obama Took Office.” “The Obama ad that quickly slips in claims that slickly appear to be the result of Obama’s policies, though the ad does not directly make that claim—a reference to 2.7 million clean-energy jobs, a note that for the first time in 13 years foreign oil imports are below 50 percent. Those figures are correct, but they are also not tethered to anything Obama has done. The report that mentioned the 2.7 million jobs simply said that is how many potentially exist. Meanwhile, the Energy Department cited a host of reasons why foreign oil imports have declined, noting the main reason was ‘a significant contraction in consumption’ because of the poor economy and changes in efficiency that began ‘two years before the 2008 crisis’—ie, before Obama took office.” (Glenn Kessler, “Obama Ad Cherry-Picks Fact Checking Organization,”Washington Post’s The Fact Checker, 1/19/12)

“The Reality Is That Most Of The Increase In U.S. Oil And Gas Production Has Come Despite The Obama Administration.” (Editorial, “‘Stupid’ And Oil Prices,” The Wall Street Journal, 2/27/12)

Federal Issued Drilling Permits Under The Obama Administration Are Lower Than The Historical Average. “In early 2010, he proposed to open some new areas to drilling but shut that down after the Gulf oil spill. According to the Greater New Orleans Gulf Permits Index for January 31, over the previous three months the feds issued an average of three deep-water drilling permits a month compared to the historical average of seven. Over the same three months, the feds approved an average of 4.7 shallow-water permits a month, compared to the historical average of 14.7.” (Editorial, “‘Stupid’ And Oil Prices,” The Wall Street Journal, 2/27/12)

  • “Approval Of An Offshore Drilling Plan Now Takes 92 Days, 31 More Than The Historical Average” (Editorial, “‘Stupid’ And Oil Prices,” The Wall Street Journal, 2/27/12)
  • “And So Far In 2012, An Average Of 23% Of All Drilling Plans Have Been Approved, Compared To The Average Of 73.4%.” (Editorial, “‘Stupid’ And Oil Prices,” The Wall Street Journal, 2/27/12)

OBAMA’S GREEN ENERGY PROGRAMS HAVE BEEN A FAILURE

Obama Doesn’t Care How Much Money His Green Energy Portfolio 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)

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)

The Wall Street Journal: “The Obama Administration Has Managed The Nearly Impossible Feat Of Turning Energy Policy Into A Money Loser, Pouring Taxpayer Dollars Into Green-Energy Busts Like Solyndra.” (Editorial, “The Non-Green Job Boom,” The Wall Street Journal, 11/28/11)

Many Of Obama’s Green Energy Programs 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)

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)

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)

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,” CNN6/23/09)

  • 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,” Politico4/22/11)
  • 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)
  • 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)

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)

“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)

First Solar

“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

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 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

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

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

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

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)

Wind Power

36 Wind Farms That Received 40% Of The Funding, $4.3 Billion, Now Only Employ About 300 People.  “About 40% of the funding, $4.3 billion, went to 36 wind farms. During the peak of construction, they employed an average of 200 workers apiece—a total of roughly 7,200 jobs. Now, those projects employ about 300 people, according to the companies and economic development officials. Their parent companies employ many more, both in the U.S. and abroad.” (Ianthe Jeanne Dugan and Justin Scheck, “Cost Of $10 Billion Stimulus Easier To Tally Than New Jobs,” The Wall Street Journal, 2/24/12)

  • Despite Lobbying To Extend The 1603 Program, And Receiving $7 Billion, The Wind Energy Industry Shed 10,000 Jobs. “The American Wind Energy Association lobbied successfully in late 2010 to extend the 1603 program through 2011, predicting it would create thousands of jobs. Wind companies wound up with more than $7 billion of the 1603 money, yet industry payrolls declined to 75,000 last year from a peak of 85,000 in 2009, according to the association.” (Ianthe Jeanne Dugan and Justin Scheck, “Cost Of $10 Billion Stimulus Easier To Tally Than New Jobs,” The Wall Street Journal, 2/24/12)

OBAMA’S WEATHERIZATION PROGRAMS HAVE BEEN A FAILURE

President Obama Said Weatherization Is “Exactly The Kind Of Program That We Should Be Funding.  OBAMA: “We’re going to weatherize homes. That immediately puts people back to work. And we’re going to train people who are out of work, including young people, to do the weatherization. As a consequence of weatherization, their energy bills go down and we reduce our dependence on foreign oil. What would be a more effective stimulus package than that? You’re getting a three-fer. Not only are you immediately putting people back to work, but you’re also saving families on their energy bills, and we’re laying the groundwork for long term energy independence. That’s exactly the kind of program that we should be funding.” (President Barack Obama, CBS’ Evening News, 2/3/09)

  • Vice President Biden Called The Program A “Triple Win. …  Because It Creates Green Jobs, Jobs That Can’t Be Outsourced.” BIDEN: “Investing in retrofits is a triple win.  It’s a win for consumers who save money on their energy bill.  It’s a win for the environment because we’re using less energy, which cuts down on harmful emissions from greenhouse gases.  And, finally, it’s a win for the American economy, because it creates green jobs, jobs that can’t be outsourced. ” (Vice President Joe Biden, Remarks By The Vice President Announcing Recovery Act “Retrofit Ramp-Up” Awards On Eve Of Earth Day, Washington, DC, 4/21/10)

Over $200 Million Spent On Weatherization And Job Training But With Little To Show For It. “California was awarded $186 million in federal stimulus money to weatherize homes. So far, the program has created the equivalent of only 538 full-time jobs. A $59 million effort to train people for green jobs in California produced only 719 job placements.” (David Brooks, “Where The Jobs Aren’t,” The New York Times, 9/5/11)

DOE Inspector General Gregory Friedman: “Weatherization Work Was Often Of Poor Quality.” “Even programs that appeared the most straightforward, such as home weatherization, were mired in challenges at the federal, state and local levels. ‘Weatherization work was often of poor quality.’” (Darius Dixon, “DOE IG: 100+ Stimulus-Related Criminal Probes,” Politico, 11/2/11)

  • “In A Recent Audit Performed At The State Level, Nine Of The 17 Weatherized Homes We Visited Failed Inspections Because Of Substandard Workmanship,’ Friedman Said.” (Darius Dixon, “DOE IG: 100+ Stimulus-Related Criminal Probes,” Politico, 11/2/11)

OBAMA’S COSTLY EPA REGULATIONS WILL STIFLE THE ECONOMY

“Unprecedented” New EPA Rules Are “Most Expensive” In The Agency’s History. “The EPA is currently pushing an unprecedented rewrite of air-pollution rules in an attempt to shut down a large portion of the coal-fired power fleet. Though these regulations are among the most expensive in the agency’s history, none were demanded by the late Pelosi Congress. They’re all the result of purely bureaucratic discretion under the Clean Air Act, last revised in 1990.” (Editorial, “An EPA Moratorium,” The Wall Street Journal, 8/29/11)

The EPA “Firehose” Of Regulations Increase Direct Costs To Utilities, Force Plant Closures And Lead To Job Losses And Higher Prices For Consumers. “A utility, for instance, might be able to comply with a single new rule, but under the EPA firehose it might be forced to retire some of its operations.  Beyond the direct costs to the utility, plant closures would lead to job losses and higher prices for consumers and business, with their own knock-on effects.” (Editorial, “The Cost Of Lisa Jackson,”


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