The House Oversight and Government Reform Committee is in the news for its investigation into Fast and Furious. The committee has not let go, however, of the investigation into the “cozy ties” between the Obama administration and green energy projects funded through Department of Energy (DOE) loan guarantees. A hearing was held on Tuesday, during which emails were released showing that a senior advisor in the DOE loan program was “too close” with a loan recipient—“giving the company access to pre-decisional information encouraging the company to make edits to internal documents.”
Tuesday’s hearing is one of the latest attacks on the loan guarantee program that have intensified since the public collapse of Solyndra drew attention to the department’s policies. The story is much bigger than Solyndra and wider than the DOE.
US energy subsidies, including spending, tax breaks and loan guarantees, increased from $17.9 billion in 2007 to $37.2 billion in 2010. The Obama administration would likely have us believe that the money spent is to reduce dependence on foreign oil while increasing international economic competiveness, to create jobs, and to address environmental degradation. However, as Peter Foster stated in his Financial Post column about the failure of the Rio +20 conference that ended on Saturday, “bogus eco scares” are being manufactured “as a rationale for payoffs”—which is certainly what has happened for the DOE subsidies.
At Tuesday’s hearing, the CEO of the company in question defended the project saying that it would “generate significant solar energy output and thereby contribute to the goal of energy independence.” What? Solar energy creates electricity. The US already has the resources to be electricity independent with enough coal, uranium, and natural gas to generate all the needed electricity for hundreds of years—if not thousands. Peter Foster’s assessment is more realistic: “a rationale for payoffs.” The subsidies to green energy projects are rife with implications of “payoffs” to Obama administration insiders, campaign donors, and other top Democrat insiders.