The Right Side

Notes from a conservative student.

More Wasteful Spending on “Green” Energy

Posted by Cullin on April 11, 2009

Well, I tried staying away, but then I found this article in the Houston Chronicle.

A coalition of energy companies hopes to reinvigorate the market for funding renewable energy projects by creating a government-backed “green bank” to serve as a conduit for billions of dollars in federal loans.

Under the plan, outlined in federal legislation sponsored by Rep. Chris Van Hollen, D-Md., the bank would be an independent, wholly owned corporation of the federal government focused solely on loaning money to a range of projects deemed to promote clean energy.

These could include power lines to connect remote wind turbines with areas of high demand, landfill methane capture projects and refineries that turn organic material into fuels.

The bill also includes funds for new nuclear power plants but only if other funding programs that might be open to those projects are exhausted.

With an initial $10 billion in capital raised through the sale of U.S. Treasury bonds, the bank could support loans many times that amount, said Todd Filsinger, co-chair of the Coalition for Green Bank and head of PA Consulting Group’s Energy Capital Markets business.

“The bank is not meant to compete with private lenders but is meant to be complementary,” Filsinger said. “It could provide the kind of assistance needed to get renewable infrastructure projects built on a constant basis for a number of years.”

This is not the kind of action we need from our government.  This “Green Bank” is only going to be throwing more money away at something that sounds warm and fuzzy, and like it would be a good idea, but in reality is something that isn’t going to work.

The Green Bank will be just another entity like Fannie Mae or Freddy Mac.  Much like the government needed these two institutions to lure banks into giving risky loans to people who could not afford them (and ultimately cause the financial crisis), they will be using the new Green Bank to prop up an industry, which is not viable, with our tax money.

But, this isn’t the end of your money going towards “green” energy.

…government funding for such work is expected to surge, both in the U.S. and abroad, thanks to efforts to stimulate the world economy. Of $2.6 trillion in economic stimulus spending the largest nations have committed, nearly $400 billion is aimed at projects like renewable energy sources and energy efficiency, according to a report released by the German Foreign Office during the G20 Summit in London this month.

The U.S. stimulus package has committed more than $10 billion to renewables for research and development and loan guarantees, but it can take a while for such funds to wend through the system and be put to work.

Our government will be doubling down their commitment (to a total of over $20,000,000,000) towards energy companies that won’t be able to support themselves for many, many years at the expense of your paycheck, of your children’s paychecks, and of companies that are actually good at what they do and can support themselves.

I would encourage you to call your representatives and let them know that wasteful spending on pipe dreams is not how we’re going to get out of a recession.  It will only prolong our problem, and cost many more jobs.

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