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Solyndra And Keystone XL: Partisan Politics And Energy In America

Posted: 10/07/11 01:38 PM ET

Something is backwards here.

With gleeful relish, Republicans in Congress have seized on the story of Solyndra, the California solar panel company that received a $535 million federal loan guarantee, only to go belly-up at the end of August. They've uncovered emails that suggest haste among Obama administration officials to award the financing, and as such they've condemned the federal loan guarantee program from which it sprang.

On Thursday, Republicans claimed a casualty in the resignation of Jonathan Silver, who has headed the loan program since 2009.

In a joint statement issued Thursday, Republican Representatives Cliff Stearns of Florida and John Upton of Michigan, who are leading the charge to politicize the Solyndra failure and widen its ramifications, suggested that won't be enough.

"Mr. Silver's resignation does not solve the problem," they wrote.

But what exactly is the problem? According to a cache of letters compiled by the Center for American Progress, at least 62 Republicans, including Stearns and Upton, have sought lucrative government loans and subsidies for clean-energy projects in their own districts. Never mind, too, that more than three dozen other companies, including some in the nuclear industry, have received some $36 billion in federal financing through loan guarantee programs that trace their roots to the Bush administration.

Those programs, which involve some risk, are designed to encourage private investment in, and help spur the growth of, technologies that don't ultimately rely on burning coal, oil or natural gas. Given Republicans' own efforts to tap those funds, these would seem to be attractive goals, whatever your politics.

And why not? According to a recent Brookings Institution analysis, the burgeoning clean-tech sector already employs 2.7 million workers -- more than the fossil fuel industries. The study also found that "newer clean economy establishments -- especially those in young energy-related segments such as wind energy, solar PV, and smart grid -- added jobs at a torrid pace" between 2003 and 2010.

Those numbers were lost on Darrell Issa, the California Republican who chairs the House Oversight and Government Reform committee. "Today, unemployment is at a staggering 9.2 percent," he declared at the opening of a hearing into the Solyndra collapse last month -- a hearing Issa dubbed "How Obama's Green Energy Agenda is Killing Jobs."

"The ill-fated green jobs experiment has done little to create jobs or speed this recovery," he said, "and by many accounts it has had the opposite effect."

Issa didn't mention that he had sent numerous letters to the Department of Energy over the years seeking grants for clean-energy firms in his own neck of the woods.

Go figure.

Meanwhile, amid the frothing over Solyndra, more than 1,000 Americans were arrested in Washington while protesting a massive, $7 billion pipeline proposal, known as the Keystone XL, that could transport nearly 1 million barrels per day of an unconventional and highly polluting form of Canadian crude some 1,700 miles and deliver them to refineries in Texas.

The plan, which some analyses have suggested would only add to a substantial over-capacity of pipeline running between Canada and the U.S., has generated stiff opposition in states through which the pipeline would cut. Among other things, critics fear a leak in the line could permanently sully a 174,000 square-mile aquifer in the American heartland and contribute irrevocably to global warming.

On these concerns, Republicans on Capitol Hill have not made a peep -- though they've been remarkably vocal about the pipeline's potential to create some 20,000 temporary construction and manufacturing jobs, more than 100,000 ancillary jobs, and to help wean the nation off of more volatile sources of foreign oil. They even passed a bill in the House over the summer that would require the State Department, in whose hands approval of the line rests, to render a decision by the first of November.

But those jobs estimates, as well as the impact of the pipeline on U.S. energy independence, have been repeatedly debunked, including by a study released at the end of last month by Cornell University's Global Labor Institute. Using numbers compiled by the company behind the project, Calgary-based TransCanada, the Cornell analysis found that the project would create fewer than 5,000 construction jobs, and a substantially smaller number of indirect jobs overall.

The pipeline "will not be a major source of U.S. jobs, nor will it play any substantial role at all in putting Americans back to work," the authors of the Cornell study assert, adding that even if the 120,000 total jobs number was accurate, "the U.S. seasonally adjusted unemployment rate would remain at 9.1 percent -- exactly where it is now."

On providing oil to U.S. markets from a friendly source, the Cornell analysis concluded that the Keystone XL pipeline would actually divert Canadian oil from Midwest refineries, "so it can be sold at higher prices to the Gulf Coast and export markets. As a result, consumers in the Midwest could be paying 10 to 20 cents more per gallon for gasoline and diesel fuel."

The higher gas prices -- estimated to total between $2 billion and $4 billion -- would drive down other spending, the study concluded, and result in job losses that would further offset whatever small gains the pipeline might represent.

And for all this, it is Solyndra that is called a "scandal" -- though no one really needs to spend much time puzzling over why. The oil and gas industries have contributed more than a quarter billion dollars to candidates in Washington over the last 20 years. Roughly 75 percent of that went to Republicans.

As for the Democrats, a small group have repeatedly urged the Obama administration to halt the Keystone permitting process amid myriad environmental concerns and, more recently, evidence that the State Department has planned all along to grant the permit no matter what.

"As increased scrutiny is applied to the approval process and the issues with the pipeline," said Congressman Steve Cohen (D-Tenn.), in an email, "I am seeing a growing number of Congressmen publicly state that the approval process has been highly flawed and that the pipeline is a bad idea."

But many other Democrats have been muted on both Keystone and Solyndra -- perhaps wanting to appear neither anti-employment at such a tough economic time, nor too supportive of what might have been poor judgement in granting a loan to a company with a bad business model in the first place. On Keystone, they also risk finding themselves in the position of attacking the Obama administration generally, and Secretary Hillary Clinton's State Departement specifically.

The State Department is expected to render a decision on whether to grant Keystone a permit by the end of the year.

Meanwhile, don't look for Republicans to stand in the way, no matter the arguments against it.

"Republicans are the party of oil," said Daniel J. Weiss, a senior fellow and the director of climate strategy at the Center for American Progress. "They are not going to do anything that will put oil in a bad light. So any hints of impropriety in moving the pipeline forward is not something they're going to be interested in doing."

And in any case, they'll be too busy sifting obsessively, and with great fanfare, through the rubble of a single California solar company.

Such are the politics of energy leading into the 2012 election. The proximate questions in each case -- whether the government should continue to help spur clean-energy technologies like solar power, and whether the government should grant a permit to build yet one more oil pipeline -- do a nice job of articulating the line between past and future that the nation now straddles so awkwardly, and with such bitter partisan paralysis.

Don't look for movement anytime soon.

 
Something is backwards here. With gleeful relish, Republicans in Congress have seized on the story of Solyndra, the California solar panel company that received a $535 million federal loan guarantee...
Something is backwards here. With gleeful relish, Republicans in Congress have seized on the story of Solyndra, the California solar panel company that received a $535 million federal loan guarantee...
 
 
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11:17 AM on 10/11/2011
Partisan politics and energy in America. The oil and coal lobby has a hold on the Republican party.

We need to think about the future and Peak Oil.

http://www.youtube.com/watch?v=TwN1HEU1pNU&feature=player_embedded
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Iam12Vote
Now With MORE Micro Bio!
08:47 AM on 10/11/2011
I just talked with someone who spent the last week in Alberta consulting with big on procedures to prevent environmental disaster. As we spoke, he asked the same questions many people are,,,
Why a pipeline to Texas where gulf coast weather has repeatedly damaged or shut down refining operations and caused wild spikes in market prices?

Why build an expensive and hazardous pipeline to put more eggs into the same basket?
This whole thing does not add up. Just who is getting paid?
08:34 PM on 10/10/2011
W signed legislation making it illegal for the U.S. to use taxpayer money to buy oil that has a larger "carbon footprint" than conventional dirty oil. So, for those supporting the pipeline claiming it will lower gas prices and help North America achieve energy independence are tossing out red herrings. The unconventional oil will not end up in American gas tanks.
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lambdin1
What's this?
02:45 PM on 10/10/2011
So it is business as usual. Except now we see how greed motivates.
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Charles Queen
I am a disabled nam vet
03:42 AM on 10/10/2011
I'v always have been a repub for the majority of my adult life.If the GOP is acting like little children however over this major screw up thn I start questioning my party choice,if it is in fact the truth.Some how I don't see it as being funny to either party to be honest but then again,stranger things hace surely happened before with eith party.To make lite of this though is not a funny thing to me and no
RageVsMachine
A Bribe is a Bribe is A Bribe
01:29 PM on 10/10/2011
these repubs ain't your grandpappys repubs.
02:41 PM on 10/10/2011
How much more slanted van an article be? The article strongly smacks of a rabid liberal writing it!
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09:24 PM on 10/09/2011
"competition is a sin".....john d rockefeller......departed king of the fossil fuel fa*scists.....
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Andrew Harvey
Don't F with the Jesus
08:47 AM on 10/09/2011
According to the story, there are "2.7 million workers in the clean-tech industry".

Wow, now that's a whopper.

Did anyone happen to read about how the came up with this figure. Apparently, if you shovel poop in the sewers, you're a member of the clean-tech industry. You're also a member if you drive a bus.

2.7 million, yeah, right.
12:44 PM on 10/09/2011
It's clear you had your mind made up before you even read this article. And you found something to be sarcastic about. As weighty as you may believe sarcasm comes off, it doesn't hold up when someone spends an extra 45 seconds to find the original report: www.brookings.edu/~/media/Files/Programs/Metro/clean_economy/0713_clean_economy.pdf

If you looked a little more deeply into this issue you would find that transportation consumes the largest amount of energy as a single sector and produces the largest amount of greenhouse gases. Every bus system in the world that switches to cleaner energy than oil, counts, especially in the world's cities. So while it may sound clever to roll your eyes at bus drivers, it's not. What bus drivers -- drivers of any commercial vehicles -- are paid to drive greener vehicles is part of the investment in clean-tech.
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SpookyAnnya
RN for higher teachers' salaries
03:07 AM on 10/09/2011
They are trying to make this then end of green spending..... Congress did nothing in June and July while FAA was unfunded and lost 1 Billion in revenue and 74000 jobs with countless projects stopped mid project. You notice they didnt make that mistake again in Sept. Mining the oil sand will be bad for Canada environmentally but they will do it. China wants their oil. China would just as soon get it refined from Texas. This Pipeline does not assure access to friendly oil. Refining the oil sands would increase pollution. A leak under ground would ruin the aquifer. If it is built I believe it should be built above ground. It's going to be a target for bombs any way.
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Charles Queen
I am a disabled nam vet
11:54 PM on 10/08/2011
I have for the most part of my life have always been predominently a repub but i also keep and open mind as well and do not have any problesn changing sides when it's in our best interests for the people and for the country.This time around however I just do not know which isde I'm going to take.I really havn't seen mcuh thats impressed me and I haven't seen any real viable plan from eiths ide to make my final choice as of yet.I'm also waiting to see if the independants op up with someone else too.So far I havn't yet been able to make up my mind and this is definitely a first for me.I know the present guy is goning to be gone which is pretty mcuh a given.I have no probles with the race game or the sex game either.I know that we need a ne damned congresss and a new senate,thats for sure
11:49 PM on 10/08/2011
The Keystone pipeline will bring secure ethical oil to America. Canada is a country that respects human rights. Would you rather your oil come from Canada or Iran, Canada or Nigeria, Canada or Saudi?

Educate yourself about ethical Canadian oil!

http://www.youtube.com/watch?v=1SjZlqbDudI
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ddeanfountain
I think micro-bios are overrated!
02:39 AM on 10/09/2011
Ethical Candain oil?
FACT: Tar Sands oil contain more than 17 times the amount of toxins contained in other crude oil.
FACT: a large portion of the Keystone pipeline project through the US is being financed by China.
FACT: a majority of the oil is to be sold to China. http://www.nytimes.com/2011/10/03/opinion/say-no-to-the-keystone-xl.html.
QUESTION: Who do you think is going to get stuck with the toxins? We are! What's ethical about getting stuck with the toxic by products of a foreign company that the Candian government has forbid release of in their country? And don't hand me the whole jobs thing. The oil and gas industry claim it will create 100K jobs but private analyst in this country have estimated the figure to be as little as 5K.

By into the all the oil and gas propoganda all you want but the fact remains, we can ether develope new technologies and move forward or we can stick with the old and go no where.
12:52 PM on 10/09/2011
I went to educate myself by clicking on the link you provided but all I found was a video saying we shouldn't by oil from Saudi Arabia because women can't drive or go shopping by themselves there. The world is vastly complex and troubled. I don't see how pushing the state of driving and shopping for Saudi women to the top of the world's to-do list can be justified.
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Charles Queen
I am a disabled nam vet
11:14 PM on 10/08/2011
Well with all of the story's of late night visits to the wh prior to getting the moeny they were after it certainly does say something was not quite right about htis deal not to mention the mny warnings the admin and or president himslef were told about and that it was not a wise thing to do.They stii havn't said verbtun just who all the CEO was visiting on those late night visits and which all of the rpo's say that this type of a buisnes deal in not handled in that manner.No.I'm no saying the pres did smoething tht he knew he should not have done.Whoever the CEO was visiting definitelt had their hande on the trigger and pulled it for them to recive that money and that means it really could have been just about anyone in the admin etc.I'm not gonna pin this one directly on the president this time though.They could have easily went around him behind his back.It wouldn't be the first time something like this has happened over the years and deacdes
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AFRescue143
Live long and prosper, IN PEACE
12:46 PM on 10/09/2011
didn't read the article did you? Of course not, you support the GOP and your mind is already made up by the E Mails they send you. Go back and read the article.
09:22 AM on 10/11/2011
Just a few points about the Solyndra situation:
1. Who besides the Solyndra Company benefited from this bad loan?
2. Did the White House and Obama in particular pressure the DOE to grant the loan?
3. Did the Solyndra executives overpay themselves? Bonuses?
4. Why did the DOE rush loaning out 4.7 billion dollars in the last couple of weeks in September?
5. Has the DOE tightened up their due diligence before granting loans?

Although 535 million of taxpayer's dollars is small when measured against the total dollars DOE has given away, it's still a lot of money. As the old saying goes..."A few million here and a few million there and pretty soon you're talking about real money."
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Nick Lahanas
Republicans: Robin Hood in Reverse
08:27 PM on 10/08/2011
Obama has the power to stop this single-handedly when it arrives on his desk. I guess we'll see then just how "green" he is.
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AFRescue143
Live long and prosper, IN PEACE
12:47 PM on 10/09/2011
Or the GOP will just try to wrap this within a bill that Obama has to have. That is how they are getting stuff done, by giving the President a Poison Pill of legislation.
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02:15 PM on 10/08/2011
Yes! We all know that the Democrats and Republicans are two sides of the same coin. But that does not excuse the whole Solyndra debacle.

Also, Quote: "According to a recent Brookings Institution analysis, the burgeoning clean-tech sector already employs 2.7 million workers -- more than the fossil fuel industries."

What's not explained in the quote is over half of these jobs are in recycling and production of products not energy and the majority of the half that is in energy is funded by government grants.
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doubleB
04:47 PM on 10/08/2011
The problem of saying they're on 2 sides of the same coin... is that fossil fuels and nuclear are already mature technologies, that've enjoyed decades of economies of scale and infrastructure. Renewables are not, and have not. They aren't even close to being on a level playing field.

So, the only possible intent of subsidies for fossil fuels and nuclear is to socialize those industries on the backs of taxpayers. This is the gorilla in the room that no Republican will admit.
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traceymarie
the President is black, deal with it
05:02 PM on 10/08/2011
so green technology because it Produces without pollution and recycles means it should be shut down. You do realize your precious oil/gas corporations receeived in excess of 4 BILLION in federal largesse, not loans GIFTS every year.
01:35 PM on 10/08/2011
Quote-- " at least 62 Republicans, including Stearns and Upton, have sought lucrative government loans and subsidies for clean-energy projects in their own districts. Never mind, too, that more than three dozen other companies, including some in the nuclear industry, have received some $36 billion in federal financing through loan guarantee programs that trace their roots to the Bush administration."
---------------------------------------------------------------

Can you say hypocrites?
01:00 PM on 10/08/2011
It's even worse - Obama has now tossed away any integrity regarding promoting and supporting green energy. In fact President Gutless could not even come clean on Solyndra:

http://www.thedailybeast.com/articles/2011/10/07/obama-losing-credibility-with-scandal-response.html
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doubleB
05:35 PM on 10/08/2011
This is a drop in the bucket compared to the preferential treatment fossil fuels and nuke industries get from the right-wing. And somehow, despite them being mature industries, that've enjoyed decades of subsidies, economies of scale, and infrastructure, their treatment is more acceptable.

Go figure.