Solyndra,
Evergreen Solar,
SpectraWatt,
Mountain Plaza
Olsen's Mills,
Solar Millennium,
Nevada’s SolarReserve Project,
Abengoa Solar
Sempra Energy
Holding off even MORE until after the election?
http://www.nationalreview.com/articles/279438/green-jobs-are-national-scandal-deroy-murdock
October 7, 2011 12:00 A.M.
Green Jobs Are a National Scandal
More bankruptcies are to come.
-----------------------------
By Deroy Murdock
Solargate is just the tip of the iceberg.
This cliché within a mixed metaphor reflects the madness of President
Obama’s obsession with “green jobs.” It would be bad enough if this
disaster were limited to possible criminality at Solyndra — the solar-
panel maker that Obama stimulated with loan guarantees, despite
repeated warnings about its rickety finances.
“The true engine of economic growth will always be companies like
Solyndra,” Obama proclaimed at its Fremont, Calif., headquarters on
May 26, 2010. Not quite. Solyndra’s August 31 bankruptcy transformed
1,100 green jobs into pink slips and marinated taxpayers in $527
million of red ink.
But many green-jobs programs that have not been raided by the FBI — as
Solyndra was last September 8 — nonetheless are fiscally reckless
enough to merit a five-alarm national scandal.
Consider these other green bankruptcies:
SpectraWatt, Inc., of Hopewell Junction, N.Y., scored $500,000 from
the Energy Department in June 2009 and $150,000 from the National
Science Foundation in June 2010, Bloomberg reports. Last August 19,
the solar-power company went bust.
Evergreen Solar was stimulated with $5.3 million of Massachusetts
government cash and praised by the White House for helping to
“kickstart the economy.” Evergreen went bankrupt last August 15.
Mountain Plaza, Inc., went bankrupt in 2003. Nonetheless, its “truck-
stop electrification” technology won $424,000 in EPA stimulus funds
administered by Tennessee’s transportation department. Yet again,
Mountain Plaza filed for bankruptcy in June 2010.
Notwithstanding its February 2009 bankruptcy and default on a $58
million loan from BNP Paribas, Wisconsin-based Olsen’s Mill
Acquisition was stimulated with $10 million in January 2010, along
with Olsen’s Crop Services. Jeff Bollier of the OshKosh Northwestern
reported that Olsen’s Mill “buys crops grown by farmers across the
eastern and central parts of Wisconsin and sells it to end users such
as Utica Energy’s ethanol plant on State Highway 91.” ADM purchased
the defunct operation’s assets last month.
Beyond outright bankruptcies, Team Obama has subsidized projects that
may be neither fraudulent nor failed, per se, but severely abuse
taxpayers:
As the Wall Street Journal reports, cash-strapped Americans are
changing babies’ diapers less frequently and doubling down on diaper-
rash ointment. What a perfect time for Team Obama to subsidize foreign
solar companies! Energy last June 18 gave Solar Trust, an American
subsidiary of Germany’s Solar Millennium, a $2.1 billion loan
guarantee for a Blythe, Calif., solar-power facility. Last June,
Energy handed Spain’s Abengoa Solar a $1.2 billion guarantee for its
Mojave (Calif.) Solar Project and backstoppped $1.45 billion last
December for Abengoa’s Gila Bend, Ariz., outpost.
On September 28, Energy approved a $737 million loan guarantee for
Nevada’s SolarReserve Project. It promises 600 construction jobs at
$1.23 million each and 45 permanent jobs at $16.4 million per
position. Energy also guaranteed $337 million for Sempra Energy’s
Mesquite Solar Project in Arizona. Its 300 construction jobs cost
$1.12 million each, while its seven permanent positions equal $48.1
million per job created. The only good news here is that this program
ended September 30. So its damage is done.
In Seattle, an Energy grant provided $20 million to weatherize homes.
Sixteen months later, this outlay has generated 14 administrative jobs
at $1.42 million apiece. How many homes have been retrofitted? Three.
Energy’s Better Buildings Neighborhood Program has fared better in
Toledo, Kansas City, and Phoenix. In those locales, $65 million has
underwritten 72 jobs. That comes to $902,777 each. Overall, this
initiative has spent $508 million in 41 states and “created or saved”
600 jobs — a real bargain at $846,666 apiece.
According to Fox News’s Dan Springer, Seattle’s hourly prevailing wage
is $12, but this program’s contractors must pay workers $21 per hour,
plus pension and benefits. Also, retrofits average $10,000 per home
and typically slice annual power bills by $300. Thus, weatherization
usually pays off in 33 years. Who stays still that long?
Does Energy hang its head in shame at such fiscal bedwetting? Hardly.
“While communities are advancing their programs at different rates, we
are pleased with the progress,” the department recently crowed.
Citing Energy’s data, Investor’s Business Daily reports that subsidies
for all energy sources averaged $1.65 per megawatt-hour in 2007. Wind
and solar: $24. Similarly, while Obama “invests” up to $48.1 million
per job, private employers hire the average individual for $58,510
annually, the Bureau of Labor Statistics calculates.
This entire fiasco helps illustrate what 19th-century French political
economist Frederic Bastiat called “that which is seen, and that which
is not seen.” While politicians cut ribbons at ceremonies outside
green-energy facilities, none will appear at a politically incorrect
coal, natural-gas, or petroleum plant that got no loan guarantees —
even to create more jobs more cheaply. Far worse, no one sees the
companies, products, and jobs that never emerged because Washington
politicians vacuumed the pockets of entrepreneurs who might have
deployed private capital more productively and innovatively.
When will liberals join the conservative choir that loudly sings
against this green-jobs fantasy? While most free-marketeers would
convert these funds to tax relief or debt reduction, only blind
liberals cannot see that this extravagance impoverishes their favorite
causes.
Every dollar that chases a money-losing windmill is a dollar that
cannot fund Head Start.
Every million that spawns only one job is a million that cannot
finance 270 average Pell Grants for needy college students.
And every billion that vanishes into green bankruptcy is a billion
that cannot help impoverished Americans heat their homes with
government assistance.
It would be refreshing to see liberals fight as hard for poor people
as for solar panels.
Undeterred, the president chases the sun, like a motorist speeding
west across the desert as dusk approaches. Obama swears that the sun
is within his grasp. Yet it stubbornly remains just beyond the
horizon.
Too bad Barack Obama won’t finance his self-defeating solar road trip
with his own money.