AS WITH SOLYNDRA AND OTHER LOAN GUARANTEE COMPANIES, ABOUND UNABLE TO COMPETE IN GLOBAL MARKET

WASHINGTON, JUNE 28, 2012 – “Once again, a beneficiary of President Obama’s risky green jobs scheme is filing for bankruptcy and the taxpayers are paying the tab,” said Rep. Cliff Stearns (R-FL), Chairman of the House Energy and Commerce Committee’s Subcommittee on Oversight and Investigations.  “First there was the Solyndra loan guarantee that was rushed to closing for political reasons, then Beacon Power, and now Abound Solar is firing its workers, closing its doors, and filing for bankruptcy.  President Obama should not be picking winners and losers with the taxpayers’ dollars, and now we continue to see how this crony capitalism and economically unsound green energy policy simply does not work.”

Abound Solar was a recipient of a $400 million loan guarantee from the Department of Energy (DOE) using funds from Obama’s stimulus.  Fortunately, due to Stearns investigation and his questions about the financial integrity of loan recipients, DOE only provided $68 million to Abound Solar.  Added Stearns, “We are seeing a continuing trend of these companies supported by our tax dollars going bust.  In announcing this loan guarantee, Energy Secretary Chu said in July 2010, ‘This project is yet another example what the Recovery Act has done in communities across the country in creating new, clean energy jobs of the future.’  Sadly, Secretary Chu’s vision has proven wrong.  The Recovery Act is not working in communities throughout the nation while he has continued to boast of its success.”

Failures:

Solyndra– The solar manufacturer received a $535 million DOE stimulus loan guarantee - BANKRUPT

Beacon Power– The solar company received a $43 million DOE stimulus loan guarantee – BANKRUPT

Abound Solar – The solar manufacturer received a $400 million DOE stimulus loan guarantee- BANKRUPT

Ener1– The battery maker, #67 on the White House list of 100 Projects that are Changing America, received a $118.5 million stimulus grant – BANKRUPT

A123– The battery maker received a $249 million DOE stimulus grant – LAYOFFS

Fisker Automotive– The electric vehicle manufacturer received a $529 million DOE ATVM stimulus loan - LAYOFFS