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President Obama’s Jobs Council Down: Five Raked in Billions of Green Stimulus Funds, Including Billionaire Penny Pritzker 

If you haven't heard the latest on the jobs front, just two years and four meetings later, President Obama closed down his Jobs Council last Thursday. A day later, unemployment "ticked up to 7.9 percent, and remains higher than it was when Obama took office and has consistently been higher than the 7 percent mark the White House promised it would not cross if Congress passed the so-called stimulus package taken up during the president's first months in office,” reports U.S. News & World Report.

“Obama is reportedly irked by the fact that the jobs council has recommended lifting regulations rather than creating new ones. Since the American people obviously did not hold Obama accountable for his economic failures as president, he is now going to focus on other issues: climate change, gun control, abortion, and immigration,” writes Breibart News.

Since its creation, the members have pushed for renewable energy subsidies. In October 2011, these Obama advisors issued a report calling for among other things, “a new federal financing program to attract private investment for clean energy projects via loan guarantees and other tools.” This request is on top of the $80 billion of "green earmarks" that has been flowing out of the 2009-Recovery Act as well as other agencies fueling clean energy projects like the Department of Energy (DOE), Environmental Protection Agency (EPA), United States Department of Agriculture (USDA), etc. Furthermore, the Obama administration fires up new climate legislation and mandates, which benefits special interest groups while adversely affecting American families.

So we say goodbye to Obama’s Jobs Council –– a panel full of "deep-pocket Democratic donors and high-profile financiers" of Obama’s 2008 and 2012 campaigns, noted ABC News in 2011. Meanwhile several were Obama campaign bundlers and it included its share of union representatives like AFL-CIO’s left-wing "elitist" Richard Trumka.

During its February 2011 implementation, The Wall Street Journal pointed out, "The group is long on White House regulars, golf partners and meal guests." A jobs panel by the way –– those that have been advising the president on how to create jobs and grow the economy, of which many were recruited from President Obama's February 2009 Economic Recovery Advisory Board (PERAB) enacted by an "executive order" –– whereas the majority are known for “job outsourcing.”

If you’ve been following any of my Green Corruption stories, since December I’ve been unraveling a new series "Spreading the Wealth to Obama's Ultra-Rich Jobs Council," exposing the five panel members that have received billions of “green” funds, the majority coming from the 2009-Recovery Act. So far I’ve covered Jeffrey Immelt, John Doerr, Lewis Hay, and today I will tackle the Hyatt heiress that raised more than $900,000 for Obama's two campaigns –– billionaire Penny Pritzker, also "rumored for Commerce Job" –– although recent reports show it could soon become a reality.

Obama’s Last Commerce Secretary

This is the same position that was held by John Bryson –– entangled in a huge piece of this Green Corruption scandal –– who was BrightSource Energy’s chairman of the board prior to his appointment as Secretary of Commerce with the Obama White House in May 2011. Although Bryson resigned in June 2012 following some mysterious auto accidents, his and the current BrightSource CEO John Woolard's political influence was no mishap.

Bryson has ties to the left-wing organization the Apollo Alliance as well as the politically powerful billionaire George Soros –– both helped craft the stimulus package, a trillion-dollar influx of taxpayer cash that eventually bailed out BrightSource. The firm was part of an intense push in 2011 that involved meaningful Democrat connections –– donors, investors, and stakeholders –– and correspondences with President Obama as well as the White House and Department of Energy Officials.

Despite the fact that BrightSource was one of 22 (out of 26) projects from the 1705 loan guaranteed program –– created under the 2009-Recovery Act –– which were rated as "junk bond" status, that didn’t sway the DOE in the least. Because on April 11, 2011, the DOE announced the finalization of $1.6 billion in loan guarantees for BrightSource’s Ivanpah project, which created a whopping 1000 construction and 86 permanent jobs. These were projects that were funded by the DOE with  $16 billion of taxpayer money, of which we can confirm that over 90 percent are politically connected to the president and other high-ranking Democrats –– some both.

However, the BrightSource push started as early as September 2009, as reflected in the House Oversight leaked emails that were unleashed late October 2012 –– a treasure trove of "inside DOE Intel" –– which not only confirms the above shady scenario, it implicates more BrightSource executives and stakeholders, DOE officials as well as Obama’s Green Team and several in Congress from the Democrat side.

In the 350+ page Appendix II, I found ongoing interaction and pressure from the heavy weight K Street firm McBee Strategic Consulting, which substantiates Timothy Carney's (the Examiner) statement, “K Street is the epicenter of this green-industrial complex, and ground zero might be the firm founded by Democratic revolving-door earmark lobbyist Steve McBee.” Carney goes on with an interesting discovery; McBee ­­[a cap-and-trade pusher] “reportedly wrote key provisions in the stimulus bill to open the spigot of green corporate welfare.”

The “BrightSource Billion Dollar Shady DOE Deal,” which also received special treatment by the Department ofInterior (part of our “Special Seven Series” last summer), plot thickens because along with Google and BrightSource, “NRG is the lead investor (sometime in October 2010 during the time of their DOE loan process) of the 392 MW Ivanpah project currently being developed in southeastern California's Mojave Desert.”

The NRG piece to this green deal was underreported, as was the fact that NRG Energy Inc. (BrightSource) is "the number one  recipient of most the 1705 loans."  If you’re not aware, NRG is connected to George Soros, an Obama donor and 2009-Recovery Act advisor, who "in the first quarter of 2009, went on a stock buying spree in companies that ultimately benefited from the federal stimulus," including NRG Energy –– a huge revelation featured in Peter Schweizer's blockbuster 2011 release that rocked the Washington establishment, Throw Them All Out, which I touched upon last May when NRG Energy landed on the DOE Cronyism Hot Seat. More damaging details in the works, but I digress…

Billionaire Penny Pritzker

Penny Pritzker, an heir to the Hyatt Hotel and Pritzker family fortune, was a key fundraiser for Barack Obama's presidential run in 2008. She’s the CEO of PSP Capital Partners and Pritzker Realty Group, and ranked in Forbes 400 list among the wealthiest in America. Also from the PERAB, Pritzker was one of the “elect members” of the president's Jobs Council, whom wears many liberal hats, including many prominent positions like the 2008 National Finance Chair of the Barack Obama for President campaign and co-chair of the 2009 Presidential Inaugural Committee, yet played a less significant role in Obama’s 2012 reelection.

Ms. Pritzker is related to the Telsa Motors $465 million loan and its 1500 jobs via the fact that –– besides Obama bundlers, big donors, and DOE insiders –– another Tesla investor is another billionaire Nicholas J. Pritzker, partner at Tao Ventures and senior development advisor for Hyatt Hotels Corp, also a donor to Obama and a cousin of Penny Pritzker –– both from Chicago.

Created under Section 136 of the Energy Independence and Security Act of 2007, the Advanced Technology Vehicles Manufacturing program (ATVM) –– not part of the 2009-Recovery Act –– holds authority to award up to $25 billion in direct loans, however, thus far the Obama administration has approved five loans worth $8.4 billion of taxpayer money.

In 2011, IWatch took notice into the DOE's "risky $1 billion bet on two politically-connected electric car builders," stating, “To date (2011), records show, more than 95 percent of applicants are still awaiting approval or have been rejected.” And that “both companies have political heavyweights behind them.”

This was a story had alluded to in 2010 and elaborated on in November 2012 –– “Cruising Down the Green Cronyism Road,” where I tracked the $8.4 billion of ATVM money to the "favored five." At that time, Marita Noon, energy columnist at Townhall.com  –– my cohort in exposing this massive Green Corruption scandal  –– and I were given an exclusive regarding XP Technologies, an ATVM applicant, which filed a lawsuit against the federal government citing “corruption and negligence.” Three have direct ties to the president: Telsa as well as Fisker Auto, which is an investment of another Jobs Council member, John Doerr (you can find my full report that I released a few weeks ago, “Bank of Obama: John Doerr and Al Gore of Kleiner Perkins, the Mother of All Green Energy Stimulus Money Winners.”)

While SolarCity's $275 million DOE deal fell apart due to the 2011 Solyndra "red flags," we do know that as of December 2012, "SolarCity currently benefits from tax credits totaling as much as 30 percent of the cost of these systems," notes Bloomberg. Moreover, as documented, SolarCity has applied for $341 million in grants, but I found 27 1603 grants for "USB SolarCity Master Tenant," which ranges over 15 states, totaling over $88 million. With this type of tally, it's difficult to say exactly how much tax-free cash SolarCity has received or will be given in the future.

Prior to entering the federal probe spotlight, SolarCity had already lined up hundreds of millions in solar funds from investors and various partnerships, which are big players in this green-energy scheme. Besides Bank of America's November 2011 entry, and sometime before July 2010, former vice president and future first "carbon billionaire" Al Gore's firm Generation Investment Management LLP became part of the SolarCity family.

The Green Corruption Blogger

Everyone who pays any attention to the news knows the name Solyndra. It has become synonymous with the overall failed green energy program administered by the Obama team. Politicos know there are many other companies that have received loan guarantees for various green energy projects that have since become a source of ridicule for the White House. Some might even be able to name a few. There is the now-bankrupt company that made batteries for electric cars: Ener1. The plug-in electric sports car company, Fisker, that made its cars in Finland and has troubles too numerous to cite. And, of course, we know about the Chevy Volt—that our taxpayer dollars bailed out only to have demand so low that Chevrolet had to pull the plug on the production line and lay off workers for five weeks earlier this year. But few know the full story.

Connecting the dots will make your head hurt. There are various programs and special tax breaks and different kinds of companies that received green energy loans: solar, wind, and geothermal; and car companies, battery manufacturers, and biofuel producers. While the projects differ, they have several startling similarities. The vast majority of the green energy loan guarantees were given to companies that could not obtain enough financial backing from private investors. Their “junk” or “speculative” grade kept people from putting their own money into them —yet your money and mine was given to them, and we had no say in the matter. Of the 27 loans issued through the 1705 Loan Guarantee Program to 21 firms, virtually all of them have “connections” to either President Obama or other high-ranking Democrats—or both! The loans were made to fill a market created not by free-market demand, but by government mandates. And, all of the “special seven” got fast-tracked approvals through the Department of Interior with little scrutiny over environmental damages that would have taken any other energy company months, if not years, to get, and EPA regulations were applied selectively.

Many of the companies that received the funds had involvement with large donors and/or bundlers for the Obama campaign, and there is an amazing revolving door through which the players pass many times. They worked, for example, for Senator Harry Reid. Then they are on the staff of an investment firm that invested in one, or more, of the companies. Next you find he or she is on some White House commission—or worse, became part of the Obama Department of Energy team. Some 460 companies applied for DOE loans, but only 27 projects, 21 companies, got the funds. And 85% of these have been found to have “connections.” The remaining 15% may well have connections too, albeit more guarded or hidden.

These are not wild assertions. I have the data to back them up.

Following the publication of my column a couple of weeks ago on crony capitalism, I was connected with Christine Lakatos. She’s a private citizen and a single mom with a nose for research. Beginning in 2009, she was hired to work on investigative projects, following the green energy money. But when those projects were completed, she didn’t stop digging. She kept finding more and more. With no outlet for her work, she started a blog where she “brain dumps” her findings—which for a total unknown has received an impressive number of readers. For anyone but the most stalwart, her Green Corruption Blog is like getting a drink of water from a fire hydrant.

On Sunday, some of Lakatos’ research was presented in my weekly column. The response prompted us to begin a collaboration.

For each of the next 17 weeks, we will expose one green-energy, crony-corruption story after another (though my travel schedule may require me to skip a week here and there). It will be a “book” released chapter-by-chapter. If you like what you find, we hope you’ll let us know and come back the following week for the next installment.

Some single stories of what we’ll expose are “out there”—though surely not covered by the mainstream media and not all in one place or all connected as we’re doing.  If you made a study of the green-energy, crony-corruption story your passion, you likely found out a lot of what we’ll share. If you read the report from the House Oversight and Government Reform Committee (HOGRC) on the Obama Administration’s green energy gamble word-for-word, or watched the incriminating hearings, you’ll already know some of what we’ll present. Or, if you’ve read the chapter in Peter Schweizer’s book Throw Them All Out that addresses alternative energy and “how the game of funneling taxpayer money to friends has exploded to astonishing levels in recent years,” you have a good idea of the big picture. If you have made this your passion, have studied the report, and have coordinated with Schweizer, as Lakatos has, you are encouraged to help make these reports as complete as possible. Together, we’ll connect the dots and present it here in bite-sized pieces.

Each of the energy projects we will profile in the “special seven” section were recipients of billions of taxpayer dollars through the 1705 Loan Guarantee Program (LGP) and many will be receiving millions more through the 1603 Grant Program. The 1705 LGP is an expansion of the 1703 program that was approved in 2005 under President Bush—increasing the expenditures from $17.9 billion in 2007 to $37.2 billion in 2010. The 2009 American Recovery and Reinvestment Act significantly expanded the DOE’s authority, under Energy Secretary Steven Chu, through the newly created 1705 LGP. (Under the Recovery Act, $86 billion—approximately 10% of the stimulus package—was earmarked for green energy projects.) The LGP means that companies get risk-free money. If the company succeeds, the low-interest loan gets paid back. If they fail—as many have—we, the taxpayers, lose. In contrast, the 1603 Grant Program—implemented as part the Obama stimulus––is administered by the Treasury Department, with the goal of reimbursing eligible applicants for a portion of the costs of installing specified energy property used in a trade or business or for the production of income. Basically 1603 gives billions in favored businesses tax-free cash gifts that do not have to be paid back.

While we can prove that cronyism has run amok within the majority of 1705 LGP, we'll stay focused on the Special Seven. Here, in Part 1, we present a complete overview of the connecting dots on one project: SolarReserve, LLC. With this introduction made, we’ll likely address several companies, with a common denominator, in subsequent releases.

In Sunday’s column, the following thumbnail was presented: “SolarReserve’s Crescent Dunes project is a solar thermal power tower plant utilizing the advanced molten salt power tower technology with integrated storage located in Tonopah, NV. The company's Fitch rating is BB, yet in September 2011, it was the recipient of $737 million in DOE loan guarantees. Obama’s law school buddy and 2008 Obama campaign bundler, Michael Froman, was managing director of alternative investments at Citigroup—which became a major investor in SolarReserve. Froman currently serves on the White House staff. Additionally, other high profile Democrats are involved with SolarReserve.”

But there is more.

More about Michael Froman. Peter Schweizer reports that “When Obama ran for president, Froman helped raise large sums of money on Wall Street” for the 2008 campaign. The HOGRC report (page 47) confirms Peter’s findings and adds that Froman was a $200,000 bundler: “Michael Froman currently serves as the Deputy Assistant to the President and Deputy National Security Advisor for International Economic Affairs. He was a friend of President Obama’s from law school, and supported his political career by bundling over $200,000 for his 2008 presidential candidacy. Prior to his arrival at the White House, Froman was the Managing Director of Alternative Investments at Citigroup, where he managed infrastructure and sustainable development investments. Citigroup became a major investor in SolarReserve, which ultimately received a $737 million loan guarantee in September 2011.”

The Citigroup connection is tighter. Richard Parsons was Chairman for Citigroup from 2009 until he announced stepping down in March 2012. Citigroup was a top Obama donor in 2008. Parsons served on the Obama Transition Team and on the Economic Advisory Board. In 2011, Parsons was appointed to the President’s Council on Jobs and Competiveness.

Next, David Sandalow—who is currently “the Assistant Secretary for Policy and International Affairs at DOE, where he acts as Secretary’s Chu’s principal adviser on energy policy, as well as coordinating DOE’s foreign policy involvement.” (HOGRC report page 49) “Sandalow’s ties to the White House date back to the Clinton Administration, during which he worked with President Clinton on environmental issues. After having gained this experience, Sandalow became the influential Chair of the Energy & Climate Working Group of the Clinton Global Initiative. He went on to advise President Obama’s presidential campaign in 2008. Prior to joining the Obama Administration, Sandalow was a senior advisor to Good Energies, Inc., an energy-focused venture capital firm. Good Energies is an investor in SolarReserve.”

Other SolarReserve connections to the Democratic Party include:

Ronald Pelosi—Former Speaker of the House Nancy Pelosi’s brother-in-law, Ronald Pelosi, holds a leadership position with Pacific Corporate Group Asset Management—which is an investor in SolarReserve. Additionally, his colleague, Jasandra Nyker, has served as a member of SolarReserve’s board of directors.

George Kaiser—Argonaut Private Equity is an investor in SolarReserve. Argonaut Private Equity is owned by major Democratic fundraiser and a 2008 Top Obama bundler George Kaiser, who also invested in Solyndra. Kaiser made multiple visits to the White House in the months before the company was granted a $535 million loan from the government. The Managing Director for Argonaut Private Equity, Steve Mitchell, serves on SolarReserve's Board of Directors.

Tony Podesta—OpenSecrets.org shows that SolarReserve paid hundreds of thousands of dollars in lobbying fees to the Podesta Group. Tony Podesta is the principal at the Podesta Group—which he started with his brother John. John Podesta ran Barack Obama’s presidential transition team and is the Director of the Center for American Progress—which is “reportedly highly influential in helping to craft White House Policy.” Both Tony Podesta and his wife Heather (a Washington power couple) are frequent White House visitors that share high ranks in "lobbying power," and Democrat bundling as well.

Lee Bailey—SolarReserve’s Chairman of the Board is Lee Bailey, a Managing Director with U.S. Renewables Group, who holds a significant financial stake in SolarReserve. Bailey has donated $21,850 since 2008 to Democratic candidates, including President Obama, Senate Majority Leader Harry Reid, California Sen. Barbara Boxer and then-presidential candidate Hillary Clinton.

James McDermott—SolarReserve board member James McDermott is also a Managing Director with U.S. Renewables Group. He contributed $61,500 to various Democratic campaigns since 2008, including $30,800 to Obama’s presidential election campaign. U.S Renewable Energy Group has ties with Senator Harry Reid.

If there were only one connect-the-dots story, it would be easy to dismiss it as coincidence. But here, with just one company, you can see the dots connect, and connect, and connect. As you will continue to see, they keep on connecting. In this case, connect-the-dots is no innocent childhood game. It is a high-stakes gamble and only those with connections get to play. Obama and his Democratic friends are the winners. We, the taxpayers, the losers. We lose the financial investment of our tax dollars and our electricity rates go up—all to support the discredited ruse of man-made climate change.

First published at Townhall.com: Obama’s Green-Energy, Crony-Corruption

By Marita Noon (Jun 29, 2012) –– also pick up by: 

• George Jarkesy Radio Show
• Conservative Action Alerts
• The Strident Conservative
• EPA Abuse 
• OurMoney.net

Marita Noon, executive director of Energy Makes America Great Inc., is a voice for energy focusing on the intersection of energy, news, politics and environmentalism. Follow Marita at @energyrabbit

Christine Lakatos is a mother of two terrific daughters, an ACE Certified Fitness Trainer, author, and more –– turned ferocious Green Corruption researcher and blogger. Follow Christine at @calfit32

Our first stop will be "The Special7" that snagged billions in DOE loans that were "junk" rated, millions in tax-free energy grants as well as fast-tracked DOI public land approval with little scrutiny over environmental damage. And....you guessed it....ALL have "meaningful" connections (bundlers, donors, supporters) to President Obama, Senator Harry Ried, and other high-profile Democrats. Some even gained White House staff and DOE Advisor positions. 

While this column uncovered #1) SolarReserve, Marita reported on the entire list of seven in her  "Eco Scare Scams Raise Obama Campaign Cash" Townhall.com piece last Sunday, June 24, 2012.

Here are a summary of the others, but we will expand on each in the following weeks.

Three more Harry Reid ties:

#2) Nevada Geothermal Power (NGP) holds leasehold interests in six geothermal projects located in the Western United States. They hold a BB+ rating and received a $78.8 million loan, guaranteed by the DOE, in September of 2011. Executives from NGP contributed heavily in 2008 to Harry Reid’s campaign. 

#3) Ormat Nevada is a wholly-owned subsidiary of Ormat Technologies Inc., whose website touts “green energy you can rely on.” They have an S&P rating of BB and received $350 million in partial loan guarantees. Ormat’s lobbyist Kai Anderson and Director of Policy and Business Development Paul Thomsen were both former senate aides to Harry Reid and donors to his campaign.

#4)  BrightSource Energy has a three-unit power system project known as “Ivanpah,” located near the California/Nevada border, south of Las Vegas, that uses a proprietary power-tower solar thermal system. Ivanpah I and III have a BB+ rating while Ivanpah II is BB. On April 11, 2011, the DOE announced the finalization of $1.6 billion in loan guarantees for BrightSource’s Ivanpah project. The apparent “payoffs” to Democrats are myriad—having donated at least $21,600 to Democrats since 2008 (and zero dollars to Republicans). According to a Washington Free Beacon report, Senator Harry “Reid received almost $4,000 from Brightsource executives in the 2010 cycle, including $2,400 from CEO John Woolard, who hosted a fundraiser for the majority leader. Woolard is also a Barack Obama donor and has visited the White House 10 times since Obama took office.” Additionally, Sanjay Wagle (a significant 2008 Obama campaign supporter and contributor), a principal at Vantage Point Partners (the major stakeholder in BrightSource) was an advisor at the DOE at the time the loan was approved. And, John Bryson, BrightSource CEO, became Obama’s Secretary of Commerce (although he resigned his post late Wednesday) and has ties to an organization that helped craft the stimulus package. 

And more...

#5) Abengoa has two solar projects: Solana and Mojave Solar. Solana’s Fitch rating is BB+. Just before Christmas, 2010, the company received $1.45 billion from the DOE for a solar thermal plant, to use parabolic trough technology, in Gila Bend, AZ. Mojave Solar’s rating was BB. Yet the company received $1.2 billion in September 2011 for its solar assembly collection project in San Bernardino County, CA. Abengoa has connections to California’s Democratic Senator Dianne Feinstein.

• "The Special7"
• Department of Energy "Junk Loans" and Cronyism List
• While Peter Schweizer's book divulged that ten members Obama's 2008 Finance Committee­, and revealed at least twenty-five 2008 Obama bundlers, large donors, and supporters that were "privy" to large amounts of green loans, grants, and special tax breaks, I found more...
• The RAT in the Stimulus and the “Green Stimulus Authors” that Have Benefited Greatly
• Obama's Green Team, DOE Officials, and DOE Advisors –– Stacked with Left-Wing Radicals, Al Gore Acolytes, and Silicon Valley Liaisons –– are Heavily Implicated in this “Green-Energy Scheme," and many have raked in big "green bucks." Also, a few White House staff that have ties to government green-energy money. 
• At Least Five Members of Obama's Job Council Got DOE Cash –– A Council that is  Stacked With Democratic Donors, many of which came from President Obama's appointed 2009 Economic Advisory Board. 
• Obama-Connected Cleantech (VC) Portfolios that Snagged Billions of Government Funds for Multiple Green Companies and Green Projects 
• Wall Street, Big Oil, Big Energy, and Big Venture Capitalists are Players Cashing in on "Green" Too 
• Failed Obama-backed Green Energy Companies –– the bankrupt and troubled "green projects and companies" list, of which I have tracked close to thirty (and more on the State level), yet it continues to grow weekly.

I know that other disgraces have plagued the Obama administration and taken center stage lately like Fast & Furious, ObamaCare, White House National Security Leaks, and more, however, with only 17 weeks until the 2012 elections, we will attempt to expose President Obama's "clean-energy dirt"  –– Green-Energy, Crony-Corruption Story –– of which I personally believe is one of the biggest scandals (and most expensive) of the Obama presidency!