In This Week's Edition of E-News…

At Oversight Hearing, Murphy Uncovers $535M Earmark to Bankrupt Solar Company

Congress Takes on NLRB Boeing Ruling

Mt. Lebanon High School Students Commemorate National Constitution Day

Murphy and Visclosky weigh in with DOD: Follow the Law

At Oversight Hearing, Murphy Uncovers $535M Earmark to Bankrupt Solar Company

The federal official responsible for a renewable energy loan program continued to allow millions in taxpayer dollars to be spent on a new factory for a bankrupt maker of solar panels despite warnings that the project was ultimately doomed to fail.

The revelations came during intense questioning by Rep. Tim Murphy at an Energy and Commerce Committee investigative hearing on Solyndra, the recipient of a $535 million taxpayer loan, which was the first “green jobs” loan financed with 2009 stimulus dollars. Solyndra, based in California, declared bankruptcy on September 6, 2011 leaving taxpayers on the hook for the half-a-billion dollar loan and 1,100 employees out of work. The government loan was restructured to protect Solyndra investors, not the taxpayer.

The loan for Solyndra was initially denied on January 9, 2009, but the project review was reopened only three weeks later and conditionally approved in March despite warnings from the Office of Management and Budget that “this deal is NOT ready for prime time.”  Documents and emails obtained  following issuance of an Energy and Commerce Committee subpoena showed that career staffers at the Department of Energy also believed the loan to be a huge financial risk. An email sent by a DoE staffer in August 2009, just prior to the final approval for the project, stated that the business model showed the “project would run out of cash in September 2011.” Other emails, which you can read here, indicated pressure from White House staffers who were eager to see the loan approved as quickly as possible so that the vice president could attend a groundbreaking for the new plant in the fall 2009.

During the hearing, Murphy asked Administration official Jonathan Silver, who directs the Department of Energy’s loan programs office, to explain who was responsible for the $535 million loan and a subsequent restructuring that left taxpayers in a worse financial position.

Rep. Murphy: “Would you give a loan to a company if they said they would not be able to pay for it?”

Murphy questions Administration witness

Mr. Silver: “Again, I was not there when this loan was issued.”

Rep. Murphy: “But at the time you were there you became aware. Did you begin to address Solyndra on the money?”

Mr. Silver: “Staff talked with the company on a regular basis.”

Rep. Murphy: “I really want you to stop throwing the staff under the bus. I want to know that you are in charge. You said you handled loans of this size and now you are saying that it is everyone else’s fault. Tell me what you, a person in charge did? What are you going to tell the taxpayers? You are losing the money of this country and are dealing with this in a very casual and cavalier way. Whose fault is it?"

Click here to watch the full exchange between Rep. Murphy and the DoE’s loan program office director.

When Solyndra ran out of cash in December 2010, Mr. Silver restructured the loan for the company. Under the new terms, in case of bankruptcy private investors would be repaid before the taxpayers. This agreement appears to violate a 2005 law designed to protect taxpayers’ interests in energy loans. The provision stated the taxpayers’ position cannot be made “subordinate to other financing.”

After the restructuring was finalized in February 2011, another $70 million was spent on the project by taxpayers. The company folded six months later.

In an appearance this morning on Fox News, Congressman Murphy, who has taken the lead on the investigation for the committee, questioned the legality of this restructuring deal and vowed to seek an explanation in subsequent committee hearings (click here to view the

Murphy on America's Newsroom

segment). And on Thursday night, Congressman Murphy appeared on Anderson Cooper’s 360 to discuss the staff warnings that Solyndra would default on the loan (click here to view the segment). Rep. Murphy will also be on “Glen Meakem Weekend” on 104.7FM this Saturday morning at 8AM to discuss this issue.

Despite the questions raised about oversight with the Solyndra earmark, the Administration continues to dole out hundreds of millions of dollars in renewable energy grants and loan guarantees. Today, Agriculture Secretary Tom Vilsack awarded more than $600 million in loan guarantees for rural electrification and $27 million for 500 solar energy and efficiency grants (click here to read more).

The Department of Treasury and the Federal Bureau of Investigations have also launched investigations of Solyndra, with the FBI having executed a search warrant and seizure of files from the company’s headquarters last week.

On Friday, September 23 at 9:30am, the Oversight Committee will hold its third hearing on the Solyndra scandal. The company’s CFO and CEO will testify before Mr. Murphy and the committee. The hearing can be viewed on CSPAN 3 or online at cspan.org.

To share your thoughts on Solyndra with Congressman Murphy, please click here.

Congress Takes on NLRB Boeing Ruling

Regulations cost US employers more than $1.75 trillion per year; that’s more than twice as much as the government collects in income taxes. And in 2011, federal agencies are moving forward with 4,257 new regulations, adding tens of billions in regulatory costs. At this moment, the Executive Branch has 219 new rules in the works that will cost the economy at least $100 million, leading many economists to question the economic implications of advancing a growing regulatory burden that far exceeds the federal government’s constitutional mandate.  

As part of an ongoing agenda to halt agency overreach, Congress has been taking up numerous bills to minimize the regulatory financial impact on employers and individuals. This week the House approved HR 2587, “Protecting Jobs from Government Interference Act.” This bill was introduced after the Boeing Company completed work on a $750 million plant in South Carolina that will create thousands of new full-time jobs for American workers, only to be sued by a federal agency in an attempt to shut it down.  

In April, the National Labor Relations Board (NLRB) charged aerospace company Boeing of "illegally" opening a new jet production line in South Carolina and took action to prevent the company from building 787 Dreamliner jets at the facility.

When facts came to light that the new Boeing facility in South Carolina did not shift jobs from Boeing facilities in the state of Washington, but instead would create additional jobs in a new market, Congress responded quickly by moving legislation to prevent the agency from forcing Boeing to close the South Carolina plant and eliminate those jobs. South Carolina Congressman Tim Scott’s "Protecting Jobs from Government Interference Act," was adopted by a vote of 238-186 with Rep. Tim Murphy’s support.

The bill would prohibit the NLRB from dictating where an employer can and cannot locate jobs in the United States. The bill eliminates the punitive remedy that the NLRB is currently seeking in the South Carolina Boeing case (NLRB filed a complaint against Boeing for creating work in S.C. and demanded the work be transferred elsewhere). The bill would not change what is and is not a violation under the National Labor Relations Act and the NLRB will still have numerous remedies to hold employers accountable for unlawful labor practices. But at a time when more than 14 million Americans are unemployed, Murphy expressed concern that a federal agency was advancing regulation to prevent private sector job growth.

"Private companies should have the flexibility to develop their businesses in the state that offers the best opportunities for growth, job creation, and stability,” said Murphy. “With unemployment over nine percent, there’s no justification for prohibiting American employers from creating jobs anywhere in America, rather than creating an environment where employers build plants and create jobs overseas.”

In a recent poll conducted by the National Association of Manufacturers, 69% of the thousands of manufacturers polled said that their decision to expand operations and hire new workers would depend on whether or not the agency was successful in the Boeing case.

Murphy stated that, “An overwhelming concern I hear from small businesses and local job in my district is the impact of new regulations have on their ability to hire employees, expand operations or even survive on a daily basis. One employer in Washington County recently told me that he constantly fears overlooking the latest federal compliance mandates because he knows it may mean layoffs to his workforce. The mountain of regulations has halted growth and new hiring.”

HR 2587 moves now to the Senate for consideration. Next week, the House will consider H.R. 2401, the Transparency in Regulatory Analysis of Impacts on the Nation (TRAIN) Act, which will requires the Environmental Protection Agency to measure the true economic and employment costs of new regulations, as well as the impact on Americans’ electricity bills. Some estimates project that EPA rules will increase home utility bills by as much 12 to 24 percent.

To share your thoughts with Congressman Murphy on the Protecting Jobs from Government Interference Act, please click here.

Mt. Lebanon High School Students Commemorate National Constitution Day

When Americans think of a patriotic holiday, Independence Day most often comes to mind. But many forget that September 17th also represents a watershed moment in our national history.  

On September 17th, 1787, the members of the Constitutional Convention, responsible for drafting the seminal document, signed the final copy, sending the Constitution to each state for ratification.

In 2004, Congress officially recognized September 17th as National Constitution Day, enshrining into law a day to reflect on the significant accomplishments of 70 delegates from 13 different states who drafted a document that has been changed only 27 times in 224 years.

As we celebrate National Constitution Day this weekend, Congressman Murphy hopes you'll take a moment to view a video created and produced by students at Mt. Lebanon High School. Led by civics teacher Gary Ford, the students capped off a week of constitutional study by participating in “Project 26”, a Pennsylvania Coalition for Representative Democracy initiative that pushes public school students in the Commonwealth to remain engaged with the founding narrative of our nation. Project 26, named for the 26th amendment to the Constitution which gave 18 year-olds the right to vote, offers upperclassmen the opportunity to teach their underclassmen peers about what it means to be an active citizen.

This year Laura Cherner and Jayson Driscoll, two senior A.P. Government students, coordinated the peer education program. As an attention getting show opener, Quinn Kobelak and Keith Rentler, completed an educational rap that has gained attention for its creative and humorous

Kobelak and Rentler perform history rap

approach to learning. As the video proves, even to those well versed in the historic period, our past can be brought alive for audience of all ages with a little hard work. Please click here to view the video.

In commemoration of Constitution Day, a quote from Pennsylvania's own Benjamin Franklin, who delivered a moving address pushing for national unity and ratification after what had, at times, been a contentious debate:  “Sir, to find this system approaching so near to perfection as it does; and I think it will astonish our enemies, who are waiting with confidence to hear that our councils are confounded like those of the Builders of Babel; and that our States are on the point of separation, only to meet hereafter for the purpose of cutting one another's throats. Thus I consent, Sir, to this Constitution because I expect no better, and because I am not sure, that it is not the best.”

To share your thoughts on Constitution Day with Congressman Murphy, click here.

Murphy and Visclosky weigh in with DOD: Follow the Law

A proposal by the Defense Department to acquire vehicle armor made of steel melted in China and foreign countries is a violation of federal statute, warned the Congressional Steel Caucus in a letter sent to the Secretary of Defense this week.

Caucus Chairman Tim Murphy (R-PA) along with Vice Chairman Pete Visclosky (D-IN) said the Pentagon’s proposal was an example of when an executive branch agency has too much latitude to draft rules that end up putting US businesses at a competitive disadvantage and even lock them out of the market altogether.  

As stated in the letter, the proposal “threatens this country’s defense industrial base by increasing our reliance on foreign suppliers and does so at the expense of domestic workers.”

The Defense Department originally drafted the proposal in 2009, when it came up with a new definition of the word “produced” in violation a federal statute written by Congress to ensure specialty steel products are made in America. The Pentagon’s proposal would circumvent 35 years of precedent meant to ensure steel used in military vehicles was made and specifically melted in the United States.

Rep. Murphy said past problems with foreign-made steel was an unnecessary risk to soldier safety, as well as a national security concern.

“Buying steel made in America ensures our troops are protected with armor that’s not only well-built, but absolutely flawless. The Pentagon shouldn’t take shortcuts on safety by importing cheap foreign-made products when there’s ample domestic capacity to produce steel armor plate,” said Rep. Murphy.

Rep. Murphy noted that a number of other products like semiconductors and electronic goods using rare earth minerals are no longer made in America. By directing the Defense Department to buy steel melted domestically, the country can retain the base capacity to manufacture steel goods used in aerospace, infrastructure, and energy sectors.

“Ensuring that the Defense Department is a customer of American steelmakers ensures our country has a vibrant industrial base necessary for a strong defense. We can’t leave ourselves vulnerable and reliant on steel and weaponry made in a foreign country especially during times of war,” said Murphy.

The effort, which was led by Mr. Murphy and Caucus Vice Chairman Pete Visclosky (D-IN), was joined by 31 other legislators including area Reps. Jason Altmire, Mark Critz, and Mike Doyle. To read a copy of the letter, please click here.

Congressman Murphy is also the lead Republican sponsor of the American Steel First Act (H.R. 1703), which would require the Department of Defense, the Department of Transportation, and the Department of Homeland Security to use only steel and iron made in America in any of these departments’ projects. In the last Congress Messrs. Murphy and Visclosky were instrumental in ensuring Buy America provisions were added to major infrastructure funding bills. 

Steelmaking is a critical component to national security. The National Defense Stockpile program, which implements and manages strategic and critical materials used during times of national emergency, stated in its 2009 report to Congress that a “global growth in demand for scarce raw materials and the industrial surges in China, India, Russia, Brazil, and other developing countries require that the U.S. employ a new, integrated and responsive strategy for identifying and ensuring, on a continual basis, an adequate supply of strategic and critical materials required for U.S. security needs.”

The report advocated that “it is critical to ensure a strong domestic defense industrial base capable of meeting national security needs.”

To share your thoughts with Congressman Murphy on the relevance of steel in our domestic economy, please click here.