Shades of Solyndra: Energy Dept. risks taxpayer cash in project tied to Obama donor

The Washington Times ^ | June 13, 2013 | Edward Felker - Washington Guardian

[jazusamo]

The Energy Department helped a struggling government-backed clean coal power plant in California secure a new owner in a donor to President Barack Obama and agreed to revised terms that raised the risk of taxpayer losses, government investigators have found.

The Department's Office of Inspector General said that officials helped keep Hydrogen Energy California afloat after its initial backers moved to terminate their DOE contract in the face of fading commercial prospects.

The project was acquired by Massachusetts-based SCS Energy, headed by Democratic donor James Croyle, in 2011. He gave $2,300 to President Barack Obama’s 2008 campaign and $31,400 to the Democratic Senatorial Campaign Committee in 2010, according to federal contribution records compiled by the nonpartisan Center for Responsive Politics.

Under the revised contract, the project’s estimated costs rose from $2.8 billion to $4 billion, while the Energy Department agreed to boost conditional taxpayer backing by $100 million, to $408 million in all.

In a report dated June 6, Western Audits Division Director David Sedillo said the department allowed SCS Energy to take over the project with a reduced equity share and did not fully verify their financial projections.

It said the department has put up to $133 million at risk of loss if the 400-megawatt project does not proceed to construction.

“Our audit found that the project is progressing. However, in our view, the Department is managing HECA at an increased risk level,” Sedillo said

[NonValueAdded]

those bastards can be bought cheap, can’t they?

[jazusamo]

They sure can, especially this Chicago way group.