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ThisarticlewaswrittenbyRONNIEGREENEandMATTHEWMOSK(@mattmosk)iWATCHNEWSandABCNEWSonMarch6,2012.

PresidentObama'sDepartmentofEnergyhelpedfinanceseveralgreenenergycompaniesthatlaterfellintobankruptcy--butnotbeforethefirmsdoledoutsix-figurebonusesandpayoutstotopexecutives,aCenterforPublicIntegrityandABCNewsinvestigationfound.

Take,forinstance,BeaconPowerCorp.,thesecondrecipientofanEnergyDepartmentloanguaranteein2009.InMarch2010,theMassachusettsenergystoragecompanypaidcashbonusesof$259,285tothreeexecutivesinpartduetoprogressmadeonthe$43millionenergyloan,SecuritiesandExchangeCommissionrecordsshow.LastOctober,BeaconPowerfiledforChapter11bankruptcy.

EnerDel,makeroflithium-ionbatterysystems,landeda$118.5millionenergygrantinAugust2009.Aboutone-and-a-halfyearslater,VicePresidentJoeBidentouredacompanyplantinIndianaandheraldeditstaxpayer-supportedexpansionasoneofthe"100RecoveryActProjectsThatAreChangingAmerica."

TwomonthsafterBiden'svisit,EnerDelcorporateparentEner1paid$725,000inbonusestothreeexecutives--including$450,000tothen-CEOCharlesGassenheimer,wholedBidenonthetour.ThisJanuary,Ener1filedforChapter11bankrupt

cyprotection.

AtleasttwootherfirmsthatbenefitedfromEnergyDepartmentfunding--onea$500,000grant,theothera$535millionloanguarantee--handedoutheftypayoutstoexecutivesandlaterwentbankrupt.

TheDepartmentofEnergy,askedaboutthepaymentsexaminedbytheCenterandABC,saiditistroubledbythepracticeandintendstoconveythatmessagetoloanrecipients.

"Wedon'tbegrudgecompaniesortheirexecutivesfortheirsuccess,butitisirresponsibleforexecutivestobeawardedbonuscompensationwhentheirworkersa

relosingtheirjobs,"saiddepartmentspokeswomanJenStutsman."Wetakeourroleasstewardsoftaxpayerdollarsveryseriously,andassuch,wewillmakecleartoloanrecipientsourviewthatfundsshouldnotbedirectedtowardexecutivebonuseswhentherestofthecompanyisfacingfinancialdifficulty."

ThebonusesandbankruptciescomeagainstagrowingwaveoftroubleforcompaniesfinancedwithEnergyDepartmentdollars.Ofthefirst12loanguaranteesthedepartmentannounced,forinstance,twofirmsfiledforbankruptcy,athirdhasfacedlayoffsandafourthdealneverclosed.

ThenonprofitCitizensAgainstGovernmentWastecountsnearly20energycompaniesthathavegottenfederalloanguaranteesorgrantsthathaverunintofinancialtroublerangingfromlayoffstolossestobankruptcies.Anoutsideconsultant

hiredbytheWhiteHousesaidtheEnergyDepartment'sloanpoolincludes$2.7billioninpotentiallyriskyloansandsuggeststheagencyhirea"chiefriskofficer"tohelpminimizeproblems.

Towatchdogs,thepatternoffirmsawardingbonusesonlytofileforbankruptcyraisesquestionsabouthowwelltheEnergyDepartmentchoseitswinners,andhowthoroughlyitkeptaneyeonthemonceselected.

"Givingabonustotheexecutivesunderthesecircumstancesisrewardingfailurewithourmoneywithnochanceofgettingitback,"saidLesliePaige,spokeswom

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anforthenonpartisanCitizensAgainstGovernmentWaste.

"Taxpayersneedsomerepresentationhere.Theydidn'treallygetit."

Thesetbackshavesharpenedthefocusonthepresident'senvironmentalmission,alreadyunderscrutinyfollowingthecollapseofSolyndraInc.,thefirstrecipientofanObamagreenenergyloan.

Solyndra,bankruptcyrecordsshow,wasamongthecompaniesdolingoutthousandsinexecutivepayments--initscase,justmonthspriortoitslateAugustcollapseandearlySeptemberbankruptcy.AsacriminalinvestigationandHouseinquirycontinueintothecompany'simplosion,thegovernmentmustnavigatebankruptcyproceedingsinhopesofrecoveringapieceofits$535millioninvestment.

Ininterviews,executiveswithcompaniesbackedbypublicdollarsdefendedthepaymentsasproper.Somesaidbonusesweregrantedforworkdoneinapreviousyear,beforefinancialstormcloudshadfullydeveloped,andthattheexecutivecashinfusionsweresometimeslinkedtobroadcorporatemilestones.

OnecompanyexecutivesaidtheEnergyDepartmentexplicitlyallowsforfederalfundstobeusedtopayoutexecutivebonuses.

DOEdoesnotsetsalariesandbenefitsofcompaniesitbacks,"butwedocloselyscrutinizealloftheexpensessubmittedbythecompaniesbeforetheyarereimb

ursedtoensurethattaxpayerdollarsarebeingusedappropriately,"saidspokeswomanStutsman."Fundsarepaidoutastheworkisactuallycompleted."

SecretaryStevenChudeclinedaninterviewrequest.Thedepartmenthaslongdefendedthegreenenergymovementasawayforgovernmenttohelpspurdevelopmentofcutting-edgeproductsthataidtheenvironmentandeconomy.Sometimes,theysay,investmentsinpotentialgame-changingtechnologiessimplydon'twork.Thepotentialdefaultrate,theysay,iswithintheparameterssetbyCongress.

YetsomemembersofCongress--alreadyconcernedaboutlucrativepaydaysatbankruptSolyndra--saythey'reparticularlytroubledthatfailedcompaniesbackedbyEnergyDepartmentfundswouldpaybonusesatall.

"Anycompanythat'sgoingintobankruptcyoranyexecutivethatranacompanyintobankruptcyshouldn'tbegettingbonusesinthefirstplace,"saidSen.CharlesGrassley,R-Iowa,formerchairmanoftheSenateFinanceCommittee."Inthecasewheretheremightbefederalgrantsorfederalloans,Iwouldbeveryconcerned."

Grassleyadded:"Thepurposeofourgrantsforenergyoralmostanyothergrantofgovernmentisforthepurposeofinnovation.It'snotforthepurposeoffeatheringthenestofaprivatecompanyexecutive."

BruceKogut,directoroftheSanfordC.BernsteinCenterforLeadershipandEthicsattheColumbiaBusinessSchool,saiditisnotuncommonforcorporatebonusestobeawardedwhenexecutivesmeetkeyachievementmilestones.

"Theproblematicissue,"ProfessorKogutsaid,isgivingoutbonuses"nearthetimeofbankruptcy."

Solyndraexecutives,bankruptcyrecordsshow,pocketedthousandsinpaymentsjustmonthsbeforethecompanydismissed1,100workers.Atleast17companyexecutivesreceivedtwosetsofpayments--rangingfrom$37,000to$60,000perpayment--onthesamedaysinAprilandJuly2011.Theinsiderpayments,reportedlastyearintheSanJoseMercuryNews,cameasthecompanycatapultedtowardbankruptcyinearlySeptember.ASolyndraspokesmandidnotreplytointerviewrequest

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s.

Solyndra'scrashlastAugustputasharpfocusontheselectionprocesstheEnergyDepartmentfollowsinawardingtaxpayerdollars.TheadministrationbackedtheupstartfirmdespiteconcernsevenfromsomegovernmentofficialsworriedaboutSolyndra'sfinancialviability,emailrecordsshow.Andenergyofficialscommittedtothefinancingbeforeallduediligencewasinhand.

GreenEnergy:BankruptciesandBonuses

Notaswell-knownarethreeotherfirmsbackedbyEnergyDepartmentdollars--rangingfrom$500,000to$118.5million--thatalsosufferedfinancialdownturns.AswithSolyndra,eachcorporateentityrewardedexecutivespriortoitsbankruptcyfiling.

Oneexample:Ener1,whosesubsidiaryEnerDelwonthe$118.5millionEnergyDepartmentgrantin2009tohelpexpanditsmanufacturingplant.Thecompanyalsoreceivedsupportivewrite-upsontheDOEwebsite.

VicePresidentBiden'sJanuary2011visittothecompany'sGreenfield,Indiana,plantwaspartofthegovernment's"WhiteHousetoMainStreetTour."

"ThisAdministrationisforginganewpathforwardbymakingsureAmericadoesn'tjustleadinthe21stCentury,butdominatesinthe21stCentury,"Bidensaid

afteratourwithEner1CEOGassenheimer."We'renotjustcreatingnewjobs--butsparkingwholenewindustriesthatwillensureourcompetitivenessfordecadestocome--industrieslikeelectricvehiclemanufacturing."

AWhiteHousereportlistedtheEnerDelprojectasNo.67amongthe"100RecoveryProjectsthatareChangingAmerica."

InMarch2011,Gassenheimerwasawardeda$450,000bonus,SECrecordsshow.TwootherEner1executivespocketedbonusesof$225,000and$50,000foratotalpayoutof$725,000.

InJanuary2012,oneyearafterBiden'svisit,Ener1filedforbankruptcy,citing$73.9millioninassetsand$90.5millionindebts.

EnergyofficialsnotedthatwhilethebonuseswerepaidtoexecutivesfromEner1,thegovernmentgrantwenttoasubsidiarycalledEnerDel,whichwasnotpartofthebankruptcycase.Butthetwoarecloselyrelated--bankruptcyrecordsshowEnerDelnowprovidesalloftheemployeesfortheparentcompany.AndthedistinctionisnewfortheEnergyDepartment--apressreleasetoutingBiden'svisitreferredtotheparentcompanyEner1astherecipientofadministrationsupport,notEnerDel.

Gassenheimer,reachedforaninterview,saidhecouldnotcomment.HeisnolongerwithEner1.

AcompanyspokesmansaidthebonuseswerepaidthroughEner1,thecorporatehold

ingcompany,notEnerDel.DOEsaidthesubsidiary'sprojectisonschedule,andanEner1spokesmansaidthebatterycompanyaimstogetbackonitsfeetthroughreorganization.

BeaconPower'sbonuseswerespecificallylinkedtoexecutives'progressinlandingthecompany's$43millionEnergyDepartmentloanguaranteein2009.

Securingtheloanwasamongthemeasuresusedtoestablishhowmuchexecutiveswouldpocketinbonuses,companySECfilingsshow."TheDOEloanapplicationwasapprovedbythecreditreviewboard,makingusthefirstpubliccompanyandthe

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secondof16applicantstoreceivethecommitment,"thedocumentnotes.

PresidentandChiefExecutiveOfficerF.WilliamCappreceiveda$133,256cashbonusinMarch2010.Twoothercompanyofficialspocketedcombinedbonusesthatmonthof$126,029.

Inaninterview,Cappsaidthecompany'spaystructurewasreasonableandthatexecutivestookpaycutsinabidtohelpBeaconPowersurvive.

"Therecordisclearonthat.Theexecutiveshavenotenrichedthemselves,"Cappsaid."Weallagreedtotakea20percentreductioninpayjusttomakethefundslastlongerinordertokeeptheteamtogether.There'shardlybeenself-enrichment."

LastweekregulatorsapprovedBeaconPower'ssaletoanequityfirmthatshouldhelpitrepay$25millionofthe$39millionBeaconhaddrawndownfromtheloan.Thecompany,undernewownership,planstocontinueoperatingthe20-megawattflywheelenergystorageplantinStephentown,NewYork,aprojectthedepartmentsaidwould"ensurethereliabledeliveryofrenewableenergytotheelectricitygrid."IthopestobuildasecondplantinPennsylvania.

Cappblamedthebankruptcyonavarietyoffactors,includinggovernmentfearsaboutrestructuringloansafterSolyndrafiledforbankruptcy.Hisfirm,hesaid,gotsweptupin"HurricaneSolyndra."

'ItAllHappenedSoQuickly'

Otherenergycompaniesstruggledinthestorm.

Amongthem:SpectraWatt,aNewYorkstatemanufacturerofsiliconsolarcells.In2009,SpectraWattsecureda$500,000grantfromtheDOE'sNationalRenewableEnergyLaboratoryPhotovoltaicTechnologyPre-Incubatorprogram.InMarch2010,U.S.LaborSecretaryHildaL.Solisandalocalcongressmantouredthecompany'sHudsonValleyResearchParkinHopewellJunction,N.Y.,highlightingthewaveofcominggreenjobs.

"PresidentObamaandIunderstandandbelievethatthefirstthingwehavetodo

toturntheeconomyaroundisprovideAmericanfamilieswithgoodjobs,"Secy.Solissaid,accordingtoaSpectraWattpressrelease."Thatiswhywearecommittedtoinvestingingreeningoureconomy."

Yet,notlongafter,thecompany'smomentumsuddenlyhalted.

LastAugust,SpectraWattfiledforChapter11bankruptcyprotection.

"Itallhappenedsoquickly,"RichardJ.Haug,SpectraWatt'sPresidentandCOO,saidinaninterview.Thecompany'sinnovativetechnology,hesaid,buttedupagainstchangingmarketandpricingconditions,competitionfromtheChinese--an

dthefactthatsomeearlyinvestorsdidnotfollowthrough.

WhiletheDOE'searlygrantsupportedresearchanddevelopment,Haugsaid,alaterfundingrequestwasdenied.LastMarch,hesaid,thecompanylaidoffitsworkforceandeffectivelyshutdown."Itbecameincreasinglydifficultforustomakeanymoremoney.Bytheendof2010webasicallydroppeddowntoacashlevelthatbyMarchwewouldbeoutofbusiness,"Haugsaid.

InMarch,thebigpayoutsbegan.Fivecompanyexecutives,includingHaug,receivedsix-figurepaymentsinlateMarchorearlyApril2011,bankruptcyrecordssho

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w.Thefive"insiderpayments"totaledmorethan$745,000.

Haugsaidthepayoutswerenotbonuses,butaccruedvacationandpayforexecutivesthathadbeenspelledoutinseveranceagreements."Therewerenogoldenparachutes,"hesaid."Thiswasaverystraightforwardveryhonestgroupofpeople.I'dgotoworkwiththemagainanytime."

EnergyofficialsnotedthattheirearlyinvestmentinSpectraWattwasrelativelysmallcomparedtootherprojectfinancing.Latelastyear,thecompanyheldauctionstoselloffitsplantandproperty.

Inrecentweeks,severalothercompaniesbackedbyDOEdollarshaveencountereddeepfinancialwoes.

AtleastsixEnergyDepartmentloanandgrantrecipients--fromelectriccarmakerFiskerAutomotivetoelectric-carbatterymakerA123SystemstoColorado-basedAboundSolar--havelaidoffworkersorsufferedfinancialwoes.Thosesetbackscomeontopofthecompaniesthathavealreadyfiledforbankruptcy.

Administrationofficials,fromObamaondown,saytheycontinuetosupportthegreenenergymission."Thereweregoingtobesomecompaniesthatdidnotworkout,"ObamatoldreportersinOctober,afterSolyndra'smeltdown."AllIcansayistheDepartmentofEnergymadethesedecisionsbasedontheirbestjudgments."

ThisarticlewastakenfromtheABCwebsitehttp://abcnews.go.com/Blotter/green-firms-fed-cash-give-execs-bonuses-fail/story?id=15851653#.T1octTEgez5

andisquotedinNaturalNews

http://www.naturalnews.com/035196_crony_capitalism_green_firms_bankruptcy.html