Monty Bannerman
ArcStar Energy
646.402.5076
www.arcstarenergy.com
Bill seeks to repeal stimulus loans by WAPA, bailouts for failed renewable
energy projects
September 16, 2011
Source: US House of Representatives Natural Resources Committee
House Natural Resources Water and Power Subcommittee Chairman Tom McClintock
recently introduced H.R. 2915, the American Taxpayer and Western Area Power
Administration Customer Protection Act of 2011. The legislation repeals the
2009 Stimulus Act's new $3.25 billion Western Area Power Administration
(WAPA) loan authority, including the taxpayer bailout provision for failed
renewable energy transmission projects.
"Recent events make it clear that billions of dollars of taxpayer funds have
been placed in jeopardy to support wind and solar companies that obviously
lack the merit to attract private investments," said McClintock. "These
dubious interests rely instead on political connections with government
officials to access taxpayer funds. As they collapse, the taxpayers end up
holding the bag. It is time to require every sector of the energy industry
to raise its own capital through its own merit rather than to perpetuate the
crony capitalism that is now running rampant through this government."
"The recent bankruptcy of Solyndra, a recipient of a $535 million stimulus
loan guarantee from the Department of Energy under the Stimulus Act, is a
stunning and alarming example of why taxpayers should not be on the hook for
billions of dollars of risky WAPA loan projects," said House Natural
Resources Committee Chairman Doc Hastings. "Taxpayers should not be stuck
footing the bill for expensive renewable energy transmission projects that
turned out to be bad investments by the federal government. Repealing this
WAPA provision will protect scarce taxpayer dollars and end several billion
dollars of unspent Stimulus Act funds."
The 2009 Stimulus Act states that, "If, at the end of the useful life of a
project, there is a remaining balance owed to the Treasury under this
section, the balance shall be forgiven." During appearances before the
Natural Resources Committee, the current WAPA Administrator could not
guarantee that such a bailout would never occur. This is in stark contrast
to the borrowing authority of the Bonneville Power Administration (BPA) and
the Tennessee Valley Authority, which are both fully responsible for
repaying their debt.
McClintock's bill would specifically repeal Section 301 of the Hoover Power
Plant Act of 1984, which was amended by the Stimulus Act to suddenly create
the new borrowing authority. It would not apply to any projects already
approved before September 15, 2011.
Mo
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