If a green energy company is given $40 million by the government to create jobs, and a total of three jobs are created, 2008 to the present, what should the government do about this?
The Department of Energy knows: provide another $80 million. Department of Energy officials have made available this money for a New Hampshire company. The company has a Michigan-based project in mind.
The state of Michigan put $20 million into the project in 2008. Now it wants help. The Department of Energy is ready to help. Why not? It also put $20 million into the same project.
The company had promised to create 70 jobs for this $40 million subsidy. What a deal! But it failed to deliver.
There were warning signs. Here was one. The company is required by law to file a report with the Securities and Exchange Commission, the federal bureaucraccy that regulated Bernie Madoff. In its SEC filing, the company admitted that it has “no experience in the markets in which we intend to operate.”
Nevertheless, the DOE signed an $80 million cooperative agreement with the firm in December, 2011. “Biofuels hold great potential, not only for reducing our dependence on foreign oil, but also for creating new jobs and economic opportunities for America’s rural communities,” Valerie Reed, the Acting Biomass Program Manager in Office of Energy Efficiency & Renewable Energy of the DOE said at the time.
The Office of Energy Efficiency & Renewable Energy is an expert in biomass. There is no question about it: this project sounds like a really big pile of biomass.