As I was preparing to expose one of the big fish in this green energy scheme –– how General Electric has raked in at least $3 billion of President Obama's "green" stimulus money –– two more government-backed renewable energy projects made headlines. Abound Solar went bust and it seems that Nevada Geothermal Power is going down the drain, both included in the Department of Energy's excessively risky loan portfolio, adding more embarrassment to the president’s “highly touted green energy initiative."
Last April, I began to unleash years of research starting with the "Department of Energy “Junk Loans” and Cronyism, Introduction," setting up the first in a series of at least five topics that will prove cronyism and corruption are the driving forces behind President's Obama's green energy agenda, with total disregard for our economy and national debt.
As a recap: the March 2012 House Oversight Investigation revealed that 23 of 27 recipients of the loan guarantees were rated as junk status investments. And according to GAO statistics (and emphasized in the June 19th Congressional hearing), "For the 460 applications to the Loan Guarantee Program (LGP), DOE has made loan guarantees for 7 percent and committed to an additional 2 percent."
And who were the "lucky" 7 percent? Of the 27 loans issued (26 as BrightSource was counted twice in the House Oversight report) through the 1705 LGP to 21 firms, virtually all of them have meaningful political connections (bundlers, donors, supporters) –– to either President Obama or other high-ranking Democrats — or both!
To add insult to "taxpayer injury," in that same June 19th House Committee on Oversight and Government Reform Hearing, Dr. De Rugy (a senior research fellow at the Mercatus Center at George Mason University), had some pretty damning testimony, including how the DOE justifies the 1705 Loan Guarantee Program. She even disputed the DOE's argument that "by investing in green technology, it would create up to 5 million green jobs." When in reality, De Rugy continues, "the DOE's own data shows that $16 billion in loans were guaranteed [under the 1705 LGP], and 2378 permanent green jobs were created" –– "that means that for every $6.7 million in taxpayer exposure, ONE job was created!"
Keep in mind that 1705 LGP is not the only DOE loan program to be analyzed –– there are three, and since 2009, the DOE has guaranteed a total of $34.7 billion. As you will see, there are also other government agencies and programs doling out billions more in "green" funds.