The Bay State’s $58 million green jobs boondoggle

By Michelle Malkin  •  January 12, 2011 01:33 PM

The myth that “green jobs” are a boon to the economy keeps getting pierced by failed green jobs boondoggle after failed green jobs boondoggle.

As I noted in April 2009, the truth about green jobs has been told all over the world. Case in point: Spain.

Every “green job” created with government money in Spain over the last eight years came at the cost of 2.2 regular jobs, and only one in 10 of the newly created green jobs became a permanent job, says a new study released this month. The study draws parallels with the green jobs programs of the Obama administration.

President Obama, in fact, has used Spain’s green initiative as a blueprint for how the United States should use federal funds to stimulate the economy. Obama’s economic stimulus package,which Congress passed in February, allocates billions of dollars to the green jobs industry.

But the author of the study, Dr. Gabriel Calzada, an economics professor at Juan Carlos University in Madrid, said the United States should expect results similar to those in Spain:

“Spain’s experience (cited by President Obama as a model) reveals with high confidence, by two different methods, that the U.S. should expect a loss of at least 2.2 jobs on average, or about 9 jobs lost for every 4 created, to which we have to add those jobs that non-subsidized investments with the same resources would have created,” wrote Calzada in his report: Study of the Effects on Employment of Public Aid to Renewable Energy Sources.

The latest green jobs failure in Massachusetts is no surprise:

Evergreen Solar Inc., which received $58 million in state aid to open a factory in 2008 at the former military base in Devens, announced today it would shut the plant and let go 800 workers by the end of this quarter. The solar-panel plant is a cornerstone of Governor Deval Patrick’s efforts to make Massachusetts a hub for the emerging clean-energy industry…

The company lost $54 million through the first nine months of 2010, and has, since its founding in 1994, accumulated a total deficit of more than $630 million. Last month, it engineered a reverse stock split to maintain capital requirements for the main Nasdaq stock exchange. Before the split, Evergreen’s stock had been trading at about 50 cents.

Evergreen did not say what will happen to the solar-panel assembly work now done at Devens, but the company noted it will continue to operate facilities in China and Michigan.

But it was just a few short years ago the company was a darling in the eyes of the Patrick administration, which offered Evergreen a rich package of grants, land, loans, and other aid – some $76 million in all-to build a new facility at Devens. The company eventually accepted $58.5 million, one of the largest investments Massachusetts has made in a private company.

They should start calling them “brown jobs” — to reflect the color of the sewer down which untold millions have been flushed in the name of environmental stimulus.

***
Previous:

11/23/10 Non-shocker of the day: Green jobs boondoogle a bust
4/8/10 The weatherization boondoggle, redux
4/13/09 “Spain’s green jobs boondoggle”
12/15/09, “Here comes Cash for Caulkers (again!); Update: Obama: “Insulation is sexy”
1/7/10 “Green Jobs” = SEIU/Union Jobs”
1/8/10, “Here comes another multi-billion-dollar Green Jobs boondoggle”
3/2/10 “A wind power cautionary tale”

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Comments


  1. #1
    On January 12th, 2011 at 1:39 pm, hawkeye54 said:

    Every state committed to “green jobs” has its own multimillion dollar boondoggle.

    Green has been the new “Red” progressive redistribution plan to select segments typically headed up by pols families, unions and cronies for padding bank accounts and doing nearly nothing practical for the environment – natural or economic.

  2. #2
    On January 12th, 2011 at 1:40 pm, Craig said:

    Soylent Green

  3. #3
    On January 12th, 2011 at 1:41 pm, Hangfire said:

    But….but…..but…..but…

    We have to save the planet!!!

    Bwaaaahaaaaaa

  4. #4
    On January 12th, 2011 at 1:46 pm, Pasadena Phil said:

    As someone who lost a pile in this stock, what was particularly frustrating was that although they had the most efficient technology and manufacturing processes, they could not overcome the Chinese dumping of subsidized inferior product.

    This is a colossal failure of US trade policy that afflicts lots of US industries and companies. Like I keep saying, “free” trade and “fair’ trade are not synonymous. We can’t be the only economy open to imports. That is why the biggest US export continues to be high-quality jobs. You can thank the one-world-without-borders one-party system beholden to global corporate interests.

  5. #5
    On January 12th, 2011 at 1:49 pm, NJ-Aviator said:

    Yes, I see Solar Panel installers running up and down the highway near me. Every time I see one, I think of the tax dollars required to make it possible for that business to exist.

    For residential service, even with all the tax-payer funded rebates, it takes 11 years to break even on a typical residential solar panel install. And you better hope you don’t need a roof anytime soon because the cost of getting that done with your solar panels in the way just went WAY up.

    I noticed while flying around the other day that a local Macy’s at the mall has it’s entire roof covered in solar panels. Interesting sight to see. Wonder how much of that cost we as tax payers had to put up?

  6. #6
    On January 12th, 2011 at 1:52 pm, rambler said:

    A smart man learns from his own mistakes. A wise man learns from his own mistakes and the mistakes of others. A stupid man…….. in the WH dooms us all.

  7. #7
    On January 12th, 2011 at 1:55 pm, letget said:

    You know, if we did not continue to spend money, money we don’t have, on crud like this our country might not have such debt! We give money, money we don’t have, to countries that hate our guts! We give money, money we don’t have, to unions, npr, pbs, acorn, and so many others to name! WHY in the name of common sense don’t those in dc stop this crud? Sorry for the rant, but this just ticked the daylights out of me.
    L

  8. #8
    On January 12th, 2011 at 2:01 pm, Hangfire said:

    On January 12th, 2011 at 1:55 pm, letget said:
    Sorry for the rant, but this just ticked the daylights out of me.

    No problemo, L. It’s good to get it off your chest.

    We wouldn’t want you to lose it, go to D.C., and blow up the plexi-glass barrier.

  9. #9
    On January 12th, 2011 at 2:03 pm, RedDog said:

    Looks like Governor Moonbeam is going to have to find more cost cuts than some government cell phones to help cover this enviro giveaway program. “Hey Jerry. Can I have some ‘o dat boodle?”

  10. #10
    On January 12th, 2011 at 2:06 pm, cheapseat said:

    Phil I agree we need a firm policy of reciprocity, meaning I will treat your products the same way you treat ours. But the simple truth is that wind, solar and ethanol take more energy to produce than they put out, meaning they will NEVER pay for themselves, but always require subsidies. Nuclear works, Petroleum works, Maybe biodiesel will work, and electricity from dams works, other than that, we are 50 to 100 years too early.

  11. #11
    On January 12th, 2011 at 2:06 pm, tarpon said:

    Jimmy Carter bought my solar panels, and when they wouldn’t heat the house, I used them to heat the spa. Worked for that :^)

    I believe the government gave me $15K to heat my spa. It lasted a few years, then they pooped out.

  12. #12
    On January 12th, 2011 at 2:06 pm, RedDog said:

    I would like a government grant to set a hundred h-bombs along the San Andreas. We could save the country a cool $300 billion a year and have great fishing besides.

  13. #13
    On January 12th, 2011 at 2:10 pm, Hangfire said:

    On January 12th, 2011 at 2:06 pm, RedDog said:
    I would like a government grant to set a hundred h-bombs along the San Andreas. We could save the country a cool $300 billion a year and have great fishing besides.

    Too wasteful, RD. We have to conserve energy.

    One Trident payload for D.C. would save Trillions.

  14. #14
    On January 12th, 2011 at 2:11 pm, WaterBoyz said:

    Yea, my local small town politicians got government money to install panels on the expanded city hall. The panels were not in the plans until the “free money” showed up.
    Go figure.

  15. #15
    On January 12th, 2011 at 2:12 pm, rambler said:

    leget, just want to add to your justified rant.

    We give money

    The gov steals it first, then hands it out like candy. Those who don’t earn it never value it and never have enough of it.

  16. #16
    On January 12th, 2011 at 2:14 pm, Teddy Kennedy said:

    Errah, I rode the DC subway the other day and was surprised to see numerous ads by the US Green Building Council (USGBC/LEED) on the billions saved in energy to an ad on getting rid of cars! Our Federal, State and Local Governments have swallowed their propaganda hook line and sinker and have now implemented some of this Bee Ess into law. Get ready cuz the greenie libs want you to live in a 2 bedroom apartment and ride your solar powered wooden bicycle to your union controlled government job.

  17. #17
    On January 12th, 2011 at 2:19 pm, Hangfire said:

    Is that bike made from re-cycled wood, Ted?

  18. #18
    On January 12th, 2011 at 2:21 pm, letget said:

    rambler#16,
    Thanks, I was so mad reading this I should have thought about your correction before posting. I’m just tired of money, from actual taxpayers, going down the drain for nothing at all for a select few and votes.
    L

  19. #19
    On January 12th, 2011 at 2:26 pm, Pasadena Phil said:

    On January 12th, 2011 at 2:06 pm, cheapseat said:

    I don’t want to get into a side discussion about alternative energy but I can point out some projects where wind and solar absolutely make sense. But they are limited applications that cannot scale up to become significant. The efficiency of ethanol has more to do with the price of oil and how it negatively impacts food prices.

    All of these alternative can contribute to the ultimate solution but in the end, there is no substitute for oil. All the subsidies in the world won’t make solar, wind and ethanol sufficiently robust as to make up for the cheap and robust oil that made our standard of living so advanced. Those days are GONE!

    We need to re-think how we live and that may be more about tailoring our values to new esthetics than about reducing our standard of living. But we can’t even have that discussion without getting bogged down in ignorant political grandstanding. We can’t even discuss incandescent light bulbs, the single biggest waste of energy (and the easiest to fix) in the US, without having a brawl.

    Living efficiently doesn’t necessarily mean that we have to sacrifice comfort and luxury. But we will lose comfort and luxury if don’t adapt in time.

  20. #20
    On January 12th, 2011 at 2:26 pm, Teddy Kennedy said:

    Errah, morning, it’s an endangered species.

  21. #21
    On January 12th, 2011 at 2:45 pm, dan708 said:

    The company lost $54 million through the first nine months of 2010, and has, since its founding in 1994, accumulated a total deficit of more than $630 million.

    That brings back unpleasant memories of Jimmeh Cottah’s ridiculous Synthetic Fuels Corp.

  22. #22
    On January 12th, 2011 at 2:48 pm, rambler said:

    I’m totally with you, Letget. It is infuriating that the elected officials have so little respect for those of us who earn the money and that they can hand it out so easily and then refuse to be held accountable as if the money was theirs all along.

  23. #23
    On January 12th, 2011 at 3:04 pm, RobM1981 said:

    Evergreen?

    Try “Ever Red…”

  24. #24
    On January 12th, 2011 at 3:29 pm, greenLibertarian said:

    This is another example of incompetent or corrupt ‘Green’ policies that delegitimize the conservation/sustainability/environmental movement.

    Wind and solar power development is certainly good, but should be done in a businesslike and sensible manner.

  25. #25
    On January 12th, 2011 at 4:09 pm, TooMuchTime said:

    …I rode the DC subway the other day and was surprised to see numerous ads by the US Green Building Council (USGBC/LEED) on the billions saved in energy to an ad on getting rid of cars!

    Did the ads look like this?

  26. #26
    On January 12th, 2011 at 4:12 pm, txvet2 said:

    If wind and solar power development is good (and profitable), the private sector will build it. Government (read: taxpayer) money is only necessary for projects that are 1) unnecessary and/or 2) not economically feasible. Ethanol is a fool’s choice and a dead end, because it takes more energy to produce than is derived from it.

  27. #27
    On January 12th, 2011 at 4:16 pm, Mister P said:

    Problem is the Left only cares about the Green and not the Job.

  28. #28
    On January 12th, 2011 at 4:37 pm, TooMuchTime said:

    Problem is the Left only cares about the Green and not the Job.

    Bingo!

    Mister P, you get today’s Blue Ribbon!

  29. #29
    On January 12th, 2011 at 4:39 pm, Truesoldier said:

    On January 12th, 2011 at 4:12 pm, txvet2 said:
    If wind and solar power development is good (and profitable), the private sector will build it. Government (read: taxpayer) money is only necessary for projects that are 1) unnecessary and/or 2) not economically feasible. Ethanol is a fool’s choice and a dead end, because it takes more energy to produce than is derived from it.

    Exactly! Look at the likes of Apple. In the 90′s Apple had fallen to the wayside, but now they have pretty much cornered the market with the Ipod and Iphone. And they did it without taxpayer money…

  30. #30
    On January 12th, 2011 at 4:41 pm, Truesoldier said:

    Problem is the Left only cares about the Green and not the Job.

    Speaking of that. I had an idea about setting up a parking garage in Seattle and pain all the parking spaces green. Then put up banners and all denoting it as the only “green” parking garage in Seattle. I figure the garage would be full all the time even if I charged more than other garges in the area….

  31. #31
    On January 12th, 2011 at 5:07 pm, Rogue Cheddar said:

    Everytime I blow my nose I’m engaging in a Green Job! Where the hell is my Government subsudy?!

  32. #32
    On January 12th, 2011 at 5:08 pm, Rogue Cheddar said:

    Subsudy = subsidy (slap!)

  33. #33
    On January 12th, 2011 at 6:32 pm, shanimal said:

    Not only is this a big loss for we sucker taxpayers in Mass, this is a total scandal. But with 1 party rule, there is nothing we can do about it. I had sent this story to hotair as a tip yesterday, I should have known that Michelle would be the better one to be on this. I hope she follows the money on this scandal, I predict it leads back to moonbat Ian Bowled who helped Gov. Erkel push through the next Big Dig, Cape Wind (behind closed doors).

    FLUSH, that’s our money going down the drain.

    from 13 months ago:

    Over 800 full-time and contract employees work in the Devens plant, and insiders say about 25 percent to 30 percent of that workforce could be impacted by the shift of panel work abroad. Yet state officials say Evergreen has exceeded their expectations of about 350 workers and have been assured that future expansion of the company in China will not have an additional adverse effect locally.

    “I feel they’ve made a good deal with the state and they intend to hold up their end of the bargain,” said Ian Bowles, secretary of energy and environmental affairs.

    http://www.masshightech.com/stories/200 … China.html

    I think you should keep an eye on this Ian Bowles. All I can say is follow the money.

    More, from Oct 09

    Once in office, Patrick sealed the deal by offering Evergreen more than $76 million in grants, land, loans, tax incentives, and other aid. It was one of the largest investments the state has ever made in the success of a private company.

    Patrick now casts Evergreen as “a symbol of the future,’’ a leader in the state’s burgeoning clean energy industry with the potential to create thousands of jobs.

    There are a lot of investors who believe they are not viable in their current form,’’ said Christopher Blansett, a JPMorgan Chase & Co. analyst

    Evergreen’s struggles are particularly sensitive for the Patrick administration, because the governor made such a personal push for the firm.

    “This is what it takes to build a new economy,’’ said Robert Culver, chief executive officer of MassDevelopment, a quasi-public agency that has handled much of Evergreen’s aid.

    “It’s very dangerous to have bureaucrats making decisions that venture capitalists struggle with,’’ said state Senator Mark Montigny, chairman of the Senate Committee on Bonding, Capital Expenditures & State Assets, who calls incentives such as those awarded to Evergreen “giveaways.’’

    MassDevelopment staff members warned last month that the company does not currently generate enough cash to pay it back, and gave it the highest score possible for risk, 6 out of 6.

    “This is one of the largest clean energy companies’’ in the state, Bowles said, “and it is a priority of the Commonwealth to help Evergreen in whatever way we can.’’

    Bowles said he was aware of the company’s challenges, but pointed out that many other solar companies face similar problems

    MassDevelopment decided to give the company a $10 million grant as part of the incentive package, the first time in memory that the agency gave a company so much money with no requirement to repay the state.

    “MassDevelopment is not in the business of providing large grants and shouldn’t be perceived as such,’’ board vice chair man Joseph Craven said at an August 2007 meeting. Craven, who resigned from the board last month, said at the meeting that he wanted to make clear the proposal was coming from state government, a reference to the Patrick administration, rather than MassDevelopment.

  34. #34
    On January 12th, 2011 at 7:12 pm, cnredd said:

    That makes “green jobs” initiatives subsidized by the government something like 0-for-985…

    The Washington Generals have a better record against the Globetrotters…

    cnredd
    Political Wrinkles
    http://politicalwrinkles.com

  35. #35
    On January 12th, 2011 at 7:42 pm, beenthere said:

    that the U.S. should expect a loss of at least 2.2 jobs on average, or about 9 jobs lost for every 4 created,

    But the true question to be addressed is this:

    * Were the 2.2 jobs that are to be lost held by people who don’t count (that is, not a member of a group/union that supports Obama)?

    * Is the person who gains the job a person who does count (member of of a group/union that supports Obama)?

    If the answer is Yes to both questions, that is the only calculation worth making because that is how the democrats think. It’s all politics all the time. Unemployment? As long as they can jack the statistics to make it look like thing are getting better, they are confident they can get all the votes they will need come 2012.

  36. #36
    On January 12th, 2011 at 8:32 pm, Danceswithdachshunds said:

    Nobody EVER listens to me, (including Romney). For years I’ve been saying that Fort Devens is the perfect place for a new airport. It’s in the middle of no where, has plenty of open space some of which is contaminated from artillery practice that is just as well paved over, residents of Winthrop/Revere/East Boston will get some relief and everyone on the North Shore will benefit from reduced traffic congestion too.

    Logan airport is facing nearly the same problems as Reagan Int, (National) did in DC years ago – there’s no where to expand to. Putting a new airport at Devens will serve Boston like Dulles does for DC. It would have meant jobs and more air travel to Mass instead of Manchester and TF Green.

    $58 million would have gone a long way toward it but now most of that money is down the toilet. No surprise, Massachusetts is home to biggest construction rip-off/scam of all time – “The Big Dig”.

  37. #37
    On January 13th, 2011 at 11:56 am, happy2behere said:

    I agree phil but here’s the thing, the green industry as a whole is not yet profitable.

    Maybe some day it will be, I hope so. Other countries, like Singapore, have made lower consumption standards work. But most of those countries are homogeneous, small in land size and have more limited resources, and produce less than the US.

  38. #38
    On January 23rd, 2011 at 12:44 pm, Jimmy Chowda said:

    I remember looking on Evergreen’s website two years ago where they bragged about how solar panels paid for itself. Well, that was after a HUGE state tax credit in the order of thousands of dollars a year and only after 12-18 years depending on what type of cells you had installed.

    If Evergreen had been successful selling their product to MA customers, the state would have been out of a lot more money.

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