Hastings, McClintock Propose Bill to Repeal Taxpayer Bailout for Federal Agency’s (WAPA) Failed Investments in Foreign & Domestic Energy Projects
Stimulus Law Put Taxpayers at Risk of Paying up to $3.25 Billion
WASHINGTON, D.C., November 5, 2009 | Emily Lawrimore or Jill Strait (202-225-2761)
Today, House Natural Resources Committee Ranking Member Doc Hastings (WA-04), along with Water and Power Subcommittee Ranking Member Tom McClintck (CA-04), introduced The American Taxpayer and Western Area Power Administration Firm Power Customer Protection Act (H.R. 4027). This bill would eliminate the taxpayer bailout provision currently included in the “stimulus” statute that gave new borrowing authority to the Western Area Power Administration (WAPA). Under the statute, U.S. taxpayers are put on the hook for any loans that WAPA provides for renewable energy transmission projects that renewable energy developers are unable to repay.
“This bill will make certain that the builders and beneficiaries of expensive transmission building projects fully bear the risks and costs of study and construction,” said Ranking Member Hastings. “Neither American taxpayers or existing WAPA customers who may have no involvement should be stuck with footing the bill for a failed project undertaken using this new $3.25 billion WAPA borrowing authority. The current situation is similar to a homeowner defaulting on a 30-year loan and having the bank pick up the remaining balance, except that the taxpayer would end up paying for this federal agency’s (WAPA) bad investment.”
“A nation that is $12 trillion in debt has better things to do with its money than to squander it bailing out foreign corporations and failed investments,” said McClintock. “Like most Americans, I support any and every energy project with just two conditions – don’t ask us to subsidize it and don’t force us to buy it.”
# # #
Sign up to receive news, updates and insights directly to your inbox.