Warren Buffett Buys Plants from Company that Received 1.2 Billion in Stimulus Funds

It’s good to be the king. And if you can’t be the king, it’s good to be the guy who sticks close to the king and gets his leftovers.

Sun Power came under fire during the election for the 1.2 billion dollars in stimulus fund loan guarantees that it received from Obama Inc. The problem was that Sun Power was completely nonviable as a business.

Republican lawmakers on two House committees are seeking details about the loans given to First Solar, SunPower Corp. and ProLogis. Of those three companies, troubling financial revelations have emerged about SunPower, which received a $1.2 billion loan, more than twice the money approved for Solyndra, which filed for bankruptcy last month after receiving a $528 million loan.

The Energy Department says on its website that the $1.2 billion loan to help build the California Valley Solar Ranch in San Luis Obispo County, a project that will help create 15 permanent jobs, which adds up to the equivalent of $80 million in taxpayer money for each job. …

In April, the Energy Department gave SunPower a conditional loan guarantee, even though the company was receiving financing in the capital markets. Shortly after the conditional guarantee, French energy giant Total bought a majority ownership in SunPower and extended a $1 billion credit line to the company.

But SunPower posted $150 million in losses during the first half of this year and its debt is nearly 80 percent higher than the market value of all its outstanding shares. The company is also facing class action lawsuits for misstating its earnings.

But you can always make a non-viable business built on crony capitalism seem viable by moving money from one crony capitalist entity to another.

Solar stocks were burning up Thursday, led by a 41% share price boom for SunPower, which this week said it sold a pair of massive Southern California solar power plants to a Warren Buffett company.

San Jose-based SunPower said in a filing with the Securities and Exchange Commission that it sold two Antelope Valley photovoltaic projects to MidAmerican Solar, a subsidiary of MidAmerican Energy Holdings, itself owned by Buffett’s company Berkshire Hathaway. The 579-megawatt pair is still under development.

So Warren Buffett bought something that doesn’t exist yet, from a company that only exists because of Federal money. But that’s nothing. If you want to see actual ecofraud on wheels, take a look at this crazy train.

CBC News received several tips after a recent story about a company shipping the same load of biodiesel back and forth by CN Rail at a cost of $2.6 million in the summer of 2010. It turns out the shipments were part of a deal by a Toronto-based company, which made several million dollars importing and exporting the fuel to exploit a loophole in a U.S. green energy program.

Bioversel Trading hired CN Rail to import tanker loads of biodiesel to the U.S. to generate RINs, which are valuable in the U.S. because of a “greening” policy regulating the petroleum industry. The EPA’s “Renewable Fuel Standard” mandate that oil companies bring a certain amount of renewable fuel to market, quotas they can achieve through blending biofuel with fossil fuel or by purchasing RINs as offsets.

Once “imported” to a company capable of generating RINs, ownership of the biodiesel was transferred to Bioversel’s American partner company, Verdeo, and then exported back to Canada. RINs must be “retired” once the fuel is exported from the U.S., but Bioversel says Verdeo retired ethanol RINs, worth pennies, instead of the more valuable biodiesel RINs. Bioversel claims this was all perfectly legal.

However, one of the companies Bioversel approached to be the ‘importer of record’—Northern Biodiesel Inc. of Ontario, N.Y. — discovered that the same fuel was going back and forth across the border and the same gallons were being used to repeatedly generate new RINs under their company’s name.

And why not? The environmentalist movement is a scam. Why shouldn’t that scam percolate all the way down?

  • Wulfher

    Nice to see that environmentalists are taking advantage of big bank and GOP tactics. Good for them!

    • objectivefactsmatter

      "Nice to see that environmentalists are taking advantage of big bank and GOP tactics. Good for them!"

      You're joke might be funny if you had any facts it might be referring to. Yeah! We all love corruption when it's from delusional freaks, right? Your problem here is that they're not environmentalists any more. They're just scammers.

  • FPF

    "Bioversel claims this was all perfectly legal." Sure, after leftists legalizing illegals, eventually doing something legal will mean something that's profiting to them. White can be legalized to be black and black can be legalized to be white, then grey will be the only PC color. Without moral, legal means NOTHING.

    • objectivefactsmatter

      "…after leftists legalizing illegals, eventually doing something legal will mean something that's profiting to them. White can be legalized to be black and black can be legalized to be white, then grey will be the only PC color. Without moral, legal means NOTHING."

      It already does mean "legal for them." Look at 0'Bama, and blind support for him.

  • Thomas Wells

    The environmentalists care about the green stuff in their wallets.

  • objectivefactsmatter

    "Warren Buffett Buys Plants from Company that Received 1.2 Billion in Stimulus Funds"

    Buffet needs "stimulus funds?" Isn't that proof that it's always been about payoffs? Now we know why he can afford to take positions on taxes that would seem to disfavor his estate.

    "San Jose-based SunPower said in a filing with the Securities and Exchange Commission that it sold two Antelope Valley photovoltaic projects to MidAmerican Solar, a subsidiary of MidAmerican Energy Holdings, itself owned by Buffett’s company Berkshire Hathaway. The 579-megawatt pair is still under development."

    What a pack of outrageous crooks. This gets more shocking as each stage of their conspiracies are revealed. Not that we will learn any time soon about most of their crimes.

  • objectivefactsmatter

    "CBC News received several tips after a recent story about a company shipping the same load of biodiesel back and forth by CN Rail at a cost of $2.6 million in the summer of 2010. It turns out the shipments were part of a deal by a Toronto-based company, which made several million dollars importing and exporting the fuel to exploit a loophole in a U.S. green energy program."

    That's OK. We need to borrow money from communist China and bill American taxpayers to bribe Canadians to use more "green energy." Sounds like a rational plan according to Green Peace and friends. I hope those trains didn't consume any energy during the shipments. I'm sure that's all factored in to Gore's calculations as this freak show leads us in to the "green" future. The green they're referring to is their financial stakes.

  • Aqualen

    Perhaps we've been misinformed? The headline, and hence most of the ignorant partisan babble in this "article" is 100% wrong. What SunPower received under the stimulus program was a loan guarantee. https://lpo.energy.gov/?projects=sunpower-corpora

    Note too, that one of SunPower's most significant projects was completed in 2007, turning a trash dump at Nellis AFB into a $1M/year solar plant for the base. .For you partisans who are challenged by math and facts, that was during the Bush administration.

    (As for the stupid biofuel train, I'll bet $10000 dollars that was not a "lefty's" idea.)