House Energy and Commerce Committee

Post image for Blame China for Solyndra’s Downfall?

Tomorrow, the House Energy and Commerce Committee will hold its second hearing on Solyndra, the manufacturer of innovative non-silicon-based solar panels that borrowed $527 million only to file for bankruptcy, shutter its brand new Freemont, Calif. factory, and lay off 1,100 employees on September 6. Expect Committee Democrats to blame China and the allegedly unforeseen fall in the price of conventional silicon-based solar panels for the debacle.

That’s the line the Department of Energy’s (DOE) witness, Jonathan Silver, took at the Committee’s first (September 14) Solyndra hearing, noting China’s provision of more than $30 billion in subsidized financing to its solar manufacturers, which rapidly dropped silicon prices, “taking Solyndra, and many industry analysts, by surprise.” DOE’s blog, Energy.Gov, had already adopted this explanation on August 31, the day Solyndra announced it would file for bankruptcy.

Similarly, Solyndra’s August 31 announcement coyly cited the “resources of larger foreign [i.e. Chinese] manufacturers” and a “global oversupply of [mainly Chinese] solar panels” as factors foiling the company’s business plan. Solyndra’s ex-employees have applied to the Department of Labor (DOL) for aid under the Trade Adjustment Assistance (TAA) program, claiming that China put them out of work. If DOL approves the application, Solyndra’s former workers will receive allowances for job retraining, job searching, and health care for up to 130 weeks, or about $13,000 per employee. Blogger Scott Linicom decries such double dipping:

So to recap: massive government subsidies created 1,100 “green jobs” that never would’ve existed but for those massive government subsidies.  And when those fake jobs disappeared because the subsidized employer-company inevitably couldn’t compete in the market, the dislocated workers blamed China (instead of what’s easily one of the worst business plans ever drafted) in order to receive . . . wait for it . . . more government subsidies. Behold, the Circle of Government Life.

Whether it’s Solyndra execs and DOE officials trying to save face, “progressives” defending the honor of green industrial policy, or former employees looking for more taxpayer freebies, they all would have us believe that Solyndra’s $535 million loan guarantee was a good bet at the time it was made. They need a scapegoat for Solyndra’s crash, so they blame China. Indeed, some (e.g. Grist) claim Solyndra’s collapse shows that the U.S. government isn’t doing enough to help our “clean tech” companies “compete.” Balderdash.     [click to continue…]

Earlier this week, the House Energy & Commerce Committee held its third hearing on the Energy Tax Prevention Act, a bill to stop EPA from determining national policy on climate change through the Clean Air Act, a statute enacted in 1970, years before global warming was even a gleam in Al Gore’s eye. The hearing, requested by ranking member Henry Waxman (D-Calif.), was entitled Climate Science and EPA’s Greenhouse Gas Regulations.

Although Democrats are now the minority party in the House, they got more witnesses (4) than did the majority (3). I don’t know how Rep. Waxman pulled that off. Did he ever let Republicans have more witnesses when he was in the chair? No. Would he return the favor if Dems regain control of the House? Doubtful.

The most effective minority witness, IMO, was Dr. Richard Somerville, whose testimony updates the continual — and predictable — refrain that ‘climate change is even worse than we previously predicted.’ Much of Somerville’s testimony is drawn from a report he co-authored called the Copenhagen Diagnosis.

It’s not my purpose here to provide an alternative assessment of climate science, though if you’re looking for one, check out Drs. Shirwood and Craig Idso’s Carbon Dioxide and Earth’s Future: Pursuing the Prudent Path

My beef, rather, is with Somerville’s claim that he’s simply a spokesman for science, not for an agenda. It’s amazing he can say this with a straight face and in the same testimony spout partisan cant about the Climategate scandal. He writes: [click to continue…]