Rep. Kelly: From Shovel-Ready to Shanghai, How Stimulus Funds Were Used to Outsource Jobs to China at Taxpayer Expense

Jul 18, 2012 Issues: Government Oversight and Reform
Rep. Kelly: From Shovel-Ready to Shanghai, How Stimulus Funds Were Used to Outsource Jobs to China at Taxpayer Expense

 

“I would have liked to have seen with this money that, instead of going to Shanghai, [it] go to the Shenango Valley where Wheatland Tube is, a company that’s in the district that I represent. They are doing an awful lot. They have a lot of people working and I’m talking about red, white and blue jobs right now in Western Pennsylvania that are being held up and not being looked at the same as some of these other projects.

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Washington, D.C. — U.S. Representative Mike Kelly (PA-03) participated in today’s House Oversight and Government Reform Committee hearing titled, “The Administration’s Bet on Abound Solar: Assessing the Costs to the American Taxpayers.” Witnesses included recipients of the U.S. Department of Energy’s (DOE) 1705 Loan Guarantee Program, which was part of President Obama’s more than $800 billion “stimulus” program designed to create shovel-ready jobs and grow the economy. The program provided $15 billion for “green energy” projects through virtually interest-free government loans.

Several of these loan guarantee projects used Chinese manufactured products instead of American-made ones. For example, a $337 million loan guarantee was given to Sempra to build a solar plant in the Arizona desert.  The company purchased solar panels manufactured by a Chinese solar panel company to assemble the plant, effectively using federal taxpayer dollars to outsource jobs to China. In addition, DOE issued Caithness Shepherds Flat a $1.3 billion loan guarantee for a wind farm, the towers of which were reportedly manufactured in China. 

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