Energy Leaks and Losses of the Granholm Years Updated

[XLFD]

Among the thousands of E-mails and other public (some private) records that WikiLeaks recently leaked out of (Hiilary Clinton's 2016 campaign chairman) John Podesta's G-mail account was an E-mail from then-Governor of Michigan, petitioning Podesta for the position of Energy Secretary.

This E-mail was sent just after Barack Obama won the election for his first term over John McCain (11-8-2016), Podesta's job at that time was serving as a leader in Obama's transition team.  It listed her qualifications to be named as head of the Department of Energy in what was a 12,000 word document.  Chief among her proud accomplishments were a number of corporate welfare programs she had engineered in Michigan, especially ones subsidizing alternate or green energy.

"In Michigan I have focused like a laser on replacing our dwindling manufacturing jobs with clean tech and renewable energy jobs. I pushed through major energy legislation this year, fully restructuring our energy laws.... I am attaching some self-serving clips and info about what we have been doing in Michigan on energy, and I have included some information about how I have been able to manage what has been the most challenged state in the nation." 

The transition team passed on Granholm's abilities just to hire Steven Chu as secretary, who oversaw the loss of billions of dollars in defaulted subsidies and waste with such follies as Solyndra.   Of course, Granholm wasn't fairing any better in Michigan over the same period before her term as governor ended in 2010. 

Two of the energy projects she took the greatest pride in turned into unqualified disasters. 

  

Mascoma Corporation was awarded $26 million from the U.S. Department of Energy and $23.5 million from the state of Michigan to convert biomass into ethanol. In 2008, the company pledged that by the end of 2012 it would employ 70 people in a facility to be built in Kinross Township in Chippewa County. 

The plant was never built. In 2014, Mascoma sold its intellectual property rights to a private Canadian company called Lallemand.

"Michigan is proud to partner with Mascoma as part of our commitment to lead the nation in alternative energy production," Granholm quoted herself in the leaked email.

United Solar Ovonic, a manufacturer of flexible thin-film modules, was approved for a $17.3 million state tax credit in 2008, to be paid out over 20 years. 

Granholm said publicly that the company would create 700 jobs. Instead, it went out of business in 2012 after filing for Chapter 11 bankruptcy

"United Solar Ovonic is a great example of the type of investment needed to ensure Michigan's economic success in the 21st century," Granholm quoted herself in the attachment.

One glaring omission of an eventual failure was left out, Mastech of Manistee, chronicled in the Torch back in late 2014 as a company that Promised Green Jobs, Took Green Money, Gave No Mas Jobs.  This was due to the fact that it wasn't yet approved for subsidization.  Since then the parent company of that venture had a chapter 11 filing in Nevada that fleshed out some more of the details of the company that aspired to make Windspires.

In this bankruptcy court decision it stated these facts:  "On November 10, 2008, CEO and Director Mike Hess signed an agreement with a Michigan company formed to manufacture the Windspire, Mastech Windspire, LLC (“Mastech”), under which Debtor agreed to pay Mastech 115% of the costs of production. 

Because the Mastech Agreement guaranteed Mastech a profit no matter its efficiency, the poorly negotiated contract resulted in the depletion of Debtor’s cash on hand from over $4.2 million in December 2008 to $0 by October 2009, at which point operating expenses were 160% of sales revenue and the Board of Directors knew that at least $2 million to $5 million in additional capital would be required to continue operations...

The board finally recognized in August 2010 that the Windspire was not profitable, and Debtor continued to lose money through at least October 2011."

If Hillary Clinton does win in November, let's hope the transition team once again overlooks the resume of Jennifer Granholm as Obama's did back in 2008.  Whoever wins needs to learn from the mistakes of the past that corporate welfare and government programs are not the best way to solve energy problems of this country.  The free market is.

The Mackinaw Center provide some additional facts for this article at:  Granholm Touted Failed Companies in Bid for Federal Energy Job. 

[shinblind]

Didn't some ex-con who just got out of prison and was living in a trailer park concoct some green energy fantasy scheme that Granholm wished to fund for millions of dollars in return for imaginary jobs?
Didn't it go as far as Jenny Granholm and this con man holding a joint news release before he was outed by some of his trailer park neighbors?

I don't have time to look up the details right now but heaven help if Clinton gets in and like Granholm tries to pick out and control who the winners will be and funds them from the unending Government checkbook.

[XLFD]

Shinblind, I didn't recall that incident, but it isn't your imagination, from the St Patrick's Day in 2010 on Mlive:

FLINT, Michigan — In a borrowed bedroom in a friend’s mobile home, Richard A. Short often worked hard, building from the ground up the company that eventually would land $9 million in tax credits from the state of Michigan, a friend said.

But Short failed to do one thing — tell his parole officer.

Now, the convicted embezzler is under state investigation after his parole officer saw media footage Wednesday of Short talking about bringing an $18.5 million investment and 765 jobs to Flint with his new cutting-edge company, Renewable and Sustainable Cos., or RASCO.

The revelation of Short’s criminal history shook the state from the governor’s office on down. The Michigan Economic Development Corp. said it was “embarrassed” by the matter and will be tightening its screening guidelines for the tax credit program.

State and local officials said Wednesday, the day after Short’s company was granted $9 million in tax credits, that they had no idea Short was on parole in Genesee County after being sentenced in 2002 for embezzlement. He also had fraud convictions in Oakland and Genesee counties.

A Michigan Economic Development spokesman said that it’s “unclear” whether the Michigan Economic Growth Authority tax credits worth $9.1 million approved Tuesday will move forward, or if there are any legal ramifications that would void it.

Short’s parole officer also didn’t know that Short had formed RASCO or that he was working as its chief executive officer, said Russ Marlan, spokesman of the Department of Corrections.

And, only 24 hours after he shared a stage with Gov. Jennifer Granholm to speak about the $9 million in tax credits, Short was arrested for a possible parole violation at the Flint Township mobile home where his friend Linda Lock said he had lived with her for free because he couldn’t afford rent.

Attempts to reach Short, 57, on Wednesday were unsuccessful.

Lock, 62, said Short was trying to move past his embezzlement convictions — in part by bringing RASCO and grandiose plans for hundreds of jobs to Flint.

“He paid his dues in jail. He’s moving forward and he’s doing nothing but good,” Lock said Wednesday. “People do change, and I really do believe he changed.”

Former Genesee County Prosecutor Arthur Busch remembers convicting Short of a fraud-related charge several years ago and said state employees should have known about his background before his company was granted $9 million in tax credits.

He called him “very skilled and very manipulative.”

She is disappointed,” Spokeswoman Liz Boyd said of the governor. “It bears noting and repeating that the state has lost nothing from yesterday’s approval of the MEGA for RASCO, which is now on hold. There is no up-front cash involved in this award.”

The MEDC issued a statement Wednesday that it was embarrassed by the news of Short’s background.

“The MEGA board will look at all its options,” said Nate Pilon, an MEDC spokesman. “The MEGA award goes to the company, not an individual.”

The MEDC said in its statement that in the future it will require that companies applying for MEGA credits disclose any prior felony convictions by senior executives and that the state will perform a background check of all company officers before a final MEGA award is given.

[Willy]

Speaking about green weenies, Urka auto dealership installed solar panels to the tune of about $600,000 or so. The LDN was so proud of them that they wrote a story explaining how wonderful this was. Unfortunately, we taxpayers will be footing 60% of the cost by giving Urka tax credits for installing the solar equipment. Then the LDN bragged about the equipment being from China. Glory be, what a wonderful world.

[AQUAMAN]

I just saw that too yesterday Willy, good post. That's a LOT of Money to spend in order to save a few thousand per year on your electric bill, what's the breakeven date? 200 years?