Californians for Renewable Energy
sues the Energy Department
Department of Energy said to have approved Solyndra
and other projects without required oversight.
Posted December 3, 2011
Department of Energy Seal
Inland Empire, CA - On November 28, 2011, Californians for Renewable Energy (CARE)
(not to be confused with CURE in which we have previously written about) and Michael Boyd filed a
lawsuit in the U.S. District Court for the District of Columbia to
challenge more than two dozen federal loan guarantees illegally issued by the U.S. Department of
Energy (DOE) under Section 1705 of the Energy Policy Act of 2005.
The lawsuit seeks to
invalidate 26 loan guarantees for utility-scale renewable-energy projects, including guarantees
to the now-bankrupt Solyndra Inc. and Beacon Corporation, because DOE issued them before putting
in place regulations that would enable it to properly vet projects and make sure they are unlikely
"No matter how you feel about federal loan guarantees as a matter of policy,
the reality is that Congress passed a law prohibiting DOE from issuing guarantees until it put
regulations in place to protect the taxpayer from Section 1705 projects with no realistic chance
of success," explained Cory Briggs, the attorney for the plaintiffs. "The Solyndra and
Beacon bankruptcies are Exhibit A for why DOE should have issued regulations before putting
taxpayers on the hook."
Michael Boyd, the president of CARE and a plaintiff, lamented the way that
big business with connections to the White House under Presidents Bush and Obama where given
such easy access to the public's purse. He describes the loan guarantees as "corporate cronyism
at its worst."
CARE works to promote public education concerning renewable energy and has been
a consistent advocate for environmentally and community-sensitive energy projects that reduce
greenhouse gases and that are commercially viable without inappropriate taxpayer subsidies.