Tuesday, December 1, 2015

Big Spanish Firm Abengoa Bagged Over $3 Billion of Obama Green Funds; Now Imploding


Since August 2012, The Green Corruption Files, via House Oversight hearings and reports, secret internal Department of Energy (DOE) emails, droves of whistleblowers –– both former and current Abengoa employees and contractors –– as well as extensive research, has been exposing the colossal "Abengoa Scandal."

This blockbuster saga entails the law-breaking Spanish conglomerate that carries direct ties to a slew of powerful U.S. Democrats, which bagged over $3 billion of American taxpayer money, with the vast majority coming from President Obama's trillion-dollar stimulus package, coupled with high-praises from the president, is now imploding.

The charges 

Our reports show that Abengoa is not only occupying our land and taking our money, but they are mistreating our citizens and blatantly breaking our laws. Illegalities that range across numerous federal and state government agencies, which includes the very stimulus law that made the loans available as well as the DOE, the Department of Labor (DOL), Immigration and Customs Enforcement (ICE), the Internal Revenue Service (IRS), the California Energy Commission (CEC), the Occupational Safety and Health Act (OSHA), the Environmental Protection Agency (EPA) and others.
The cash 

As a reminder, Abengoa was the second largest recipient of the Energy Department's stimulus loans (the DOE's "Junk Bond Portfolio"): over three times the notorious green energy loser, Solyndra. Between July 2010 and September 2011, this foreign-owned entity was awarded three DOE loans worth over $2.9 billion to construct two solar energy complexes in Arizona and California and a biofuel plant in Kansas –– with two of the largest loans yet to be repaid.

According to the March 2012 House Oversight Committee Report (The Department of Energy’s Disastrous Management of Loan Guarantee Programs), Abengoa received an additional "$818 million in Treasury grant commitments" (free U.S. cash). 

 While these monies mostly likely came out of the 1603 Grant Program, which was also the brainchild of the Obama White House via the clean-energy sector of stimulus law, it is unclear how much they actually cashed in on. Meanwhile, the Washington Free Beacon documented that Abengoa has "received more than $100 million in federal grants."

We do know that Abengoa also received plenty of money from the United States Export-Import Bank (Ex-Im Bank), which is another avenue where favored firms are awarded hundreds of millions of taxpayer-backed loans. Besides the fact there are serious "conflict of interest" that implicate the Bank and Abengoa, I found three Ex-Im Bank "green" transactions that benefited this foreign firm, which transpired in 2011, 2012 and 2013, exceeding $267 million –– all chronicled in my June 2015 Green Corruption File.

And in December 2013, Abengoa was awarded a $2 million competitive award from the DOE’s SunShot Initiative “to improve manufacturing and assembly of their innovative large aperture parabolic trough collector over the next two years.”

The connections

Nevertheless, this Big foreign firm has countless Big Green Cronies here in the United States that are connected to President Obama, former Secretary of State Hillary Clinton and her family foundation as well as many high-powered Democrats. This includes the wealthy climate crusaders, former Vice-President Al Gore and his billionaire buddy John Doerr; the former Governor of New Mexico Bill Richardson; the president's former climate czar Carol Browner, as well as key Energy Department officials that were privy to the decision-making process inside the DOE deals, of which, amongst other shenanigans, involved a fast track process imposed at the "POTUS level" and "White House "intervention."

In the mix we find California career politicians Senator Dianne Feinstein and Governor Jerry Brown as well as other big names such as McKinsey & Company, Pacific Gas and Electric and Citigroup. Towing the line have been powerful lobbyists like American Council on Renewable Energy (ACORE) and Center for American Progress (CAP), the progressive think tank, which happens to be the dark, driving force behind the president’s massive green energy scheme.



Photo taken from Breitbart News: Credit AP / Globe Newswire 
The crash

Abengoa, which website boasts that it "operates in more than 80 countries and has a presence through local offices in more than 35 of them," has so many subsidiaries it will make your head explode.

Still, during my last post, I had highlighted Abengoa's financial woes, including that there was speculation of bankruptcy on the horizon –– a prediction we made long ago. 

In fact, in July 2014, via an exclusive interview by Lachlan Markay of the Washington Free Beacon, one informant concluded with the following statement: “This company eventually will go bankrupt,” he insisted. “The question is at what expense to the United States people and government.”

Just this past week (November 25-December 1, 2015), numerous headlines emerged regarding Abengoa's demise, which has even "rattled the Spanish Economy":



If you were wondering what the Spanish word for “Solyndra” is, this week provided the answer: “Abengoa.” 
Abengoa is a Spanish company that was another of President Obama’s personally picked green energy projects, and it’s now on the verge of bankruptcy too, potentially saddling taxpayers with a multi-billion-dollar tab and fueling the notion that the administration repeatedly gambles on losers in the energy sector.

*November 25: The Guardian
Citi criticised by investors over Abengoa collapse
Failure of Spanish renewable group proves embarrassing for US investment bank, which launched share sale to raise funds for it earlier this year

*November 25: ZeroHedge.com
US Taxpayer Faces $230 Million Loss As Spain's 'Solyndra' Files For Creditor Protection

The future of the company seems very black, "notes on trader as the bonds and stocks of Spanish renewbles form Abengoa lives up to its name and files for creditor protection, just as we warned was likely. With the stock crashing 70% to 28c and 4-month bonds trading at just 22c on the dollar, market participants face an almost total loss.. but, as we detailed previously, it is the American taxpayer - who thanks to Ex-Im Bank loans to keep this zombie alive - face losses of $230 million as Spain's Solyndra exposes another symptom of the Oligrachic ignorance of where the money comes from.

 *November 25: The Wall Street Journal
Spain’s Abengoa Files for Creditor Protection
MADRID—Spanish renewable energy and engineering firm Abengoa SA said on Wednesday that it is filing for preliminary creditor protection, an initial step that could lead to the largest bankruptcy case in the country’s history.

MADRID, Nov 25 Spain's Abengoa started insolvency proceedings on Wednesday after a potential investor said it would not inject fresh capital into the energy firm, sending its share price tumbling by 54 percent.
Under Spanish law, companies can enter into pre-insolvency proceedings, giving them up to four months to reach an agreement with creditors to avoid a full-blown insolvency process and a potential bankruptcy.

*November 25: FORTUNE 
Spain’s Abengoa started insolvency proceedings on Wednesday after a potential investor said it would not inject fresh capital into the energy firm, sending its share price tumbling by 60 percent. 
Under Spanish law, companies can enter into pre-insolvency proceedings, giving them up to four months to reach an agreement with creditors to avoid a full-blown insolvency process and a potential bankruptcy. 
Failure by Abengoa to reach such a deal could lead to Spain’s largest bankruptcy on record.
Spanish and international banks’ total exposure to Abengoa stands at around 20.2 billion euros ($21.40 billion), including financing for projects, a source familiar with the matter said at the end of September.
* November 26: CNBC
Spain's largest ever corporate bankruptcy?
Shares of Spanish renewables giant Abengoa closed down over 30 percent on Thursday, one day after the company began insolvency proceedings.

In Spain, businesses are able to enter pre-insolvency proceedings and have four months to find an agreement with creditors in order to avoid an insolvency process and potential bankruptcy.

Wednesday saw Fitch downgrade Abengoa's Issuer Default Rating, or IDR, to 'CC' from 'B', with its senior unsecured rating also falling from 'B' to 'C'. Fitch also revised the company's Recovery Rating on senior unsecured debt to 'RR5' from 'RR4'.

* November 26: EL PAIS/BLOOMBERG
 Abengoa on verge of largest bankruptcy filing in Spanish history
Spanish renewable energy company Abengoa on Thursday applied for preliminary protection from creditors and called in lenders to start negotiating the terms of an agreement that would prevent a definitive suspension of payments. 
In accordance with Spanish insolvency laws, the company has four months to reach an out-of-court agreement with its creditors. 
Abengoa is on its way to becoming the biggest bankruptcy case in Spanish business history – even bigger than the fall of real estate giant Martinsa-Fadesa. 
While the Seville-based firm desperately seeks a new deal with its creditors or a new investor to shoulder part of its €8.9 billion of gross financial debt, it is also asking bondholders to group together into a committee to renegotiate the debt. 
“The committee is necessary in order to manage our commitments in an efficient manner,” said a company spokesperson. 
Meanwhile, shares in the renewable energy and engineering giant continued to plunge...
*November 26: REUTERS
UPDATE 1-ISDA rules no bankruptcy at Abengoa
ISDA's credit determinations committee has ruled that recent events at Abengoa do not constitute a bankruptcy credit event.
Abengoa is striving to reach an agreement with creditors to avoid a full insolvency process and under Spanish law, has four months to reach an agreement with investors. 
But with a number of debt maturities - including commercial paper - before year-end, the issuer could still be pushed into technical default before a restructuring agreement is put in place.

*November 29: Breitbart News
Solyndra II: Energy Company Busts on Eve of Climate Summit

As President Barack Obama departed for the climate summit in Paris, he faces a new “Solyndra” scandal as Spain’s Abengoa SA, which received $3 billion in administration sustainable energy loans and Export-Import Bank guarantees, announced that it has started bankruptcy proceeding and may soon default on its debt.

*December 1: News.com.au
Spanish solar energy firm Abengoa facing $29.6 billion bankruptcy
A renewable energy company personally picked by US President Barack Obama is on the verge of collapse, potentially leaving international banks on the hook for around $29.6 billion.

Abengoa, a Spanish solar energy firm which has received $3.74 billion in loans from the US government since 2010 to construct several large-scale solar projects, looks set to become the largest bankruptcy in Spanish history.


Considering that Abengoa has four months to scramble, we are now pondering this question: when Abengoa goes bust, what will it cost "the United States people and government?”

Well, besides the damage that this Spanish firm has inflicted here in America, which has been well documented in previous Green Corruption Files and summarized later in this post, there is the matter of billions of U.S. taxpayer cash.

While it is unclear how much free cash (grants) Abengoa scored from the Obama White House, we do know that according to Expansion, which provided a list of Abengoa creditors (released November 26, 2015), that their largest creditor is the Federal Bank, owing $2.22 billion and points to those Energy Department stimulus loans. Here is an excerpt:

The Federal Financing Bank, owned by the U.S. Government and is overseen by the U.S. Treasury, is the firm with the largest exhibition: a total of 2,220 million, exclusively in financing of projects. In particular, Abengoa earmarked this money to finance two jobs: Solana, the largest plant cylinder dish in the world, with a capacity of 280 megawatts (MW) and located in Phoenix, near Gila Bend, Arizona. And Mojave, a plant of 280 MW gross, located 150 kilometers northeast of Los Angeles.

In addition, Abengoa's top 20 creditors include the US Ex-Im Bank for $260 million as well as other Big U.S. banks and investors –– one of which I am "personally" aware of (Liberty Interactive Corp. for $300 million). But what about all the American workers, vendors and contractors that Abengoa screwed over?

What about the illegalities committed by this foreign firm on American soil?

Where's the oversight?


Crickets...

What makes this so pathetic is that due to the tenacity of our informants, we can confirm that the Energy Department has known about the enormous Abengoa misconduct for years (since January 2013). We also know that as early as 2014, there were several "federal inquiries" swirling around these taxpayer-funded green projects (ICE, the DOL and the IRS); however, they seemed to have gone dim.

Where is Secretary of Energy Dr. Ernest Moniz, whom was well aware of Abengoa's transgressions, and even during his April 2013 confirmation hearing promised this: "If confirmed, I will make the monitoring and oversight of the Loan Program's portfolio of loan guarantees a top priority."

Where is the House Oversight Committee and the House Finance Committee –– both run by the Republican party that have also known about this massive Abengoa Scandal for a very a long time?

Crickets... 


Maybe these investigations would put a damper on President Obama's climate legacy: a deceptive plot to "save the planet" that includes a colossal fearmongering campaign and has already exceeded $200 billion of U.S. taxpayers money, which factors in both stimulus and non-stimulus funds.

Most likely the Republicans are in on this scam.

Either way: this is not a blue or red issue –– It's an American one. And, both political parties dropped the ball, which should anger all taxpaying citizens of the United States of America!

Nevertheless, more directly is that this breaking news of Abengoa's impending bankruptcy would blow the lid off of the Energy Department's spin that this controversial loan program is great for America, is creating American jobs, while making a profit. Yet in reality, this DOE loan program has not only been rife with cronyism and corruption, but the so-called green jobs that it created, saved, recycled or otherwise is absolutely dismal, especially in the case of Abengoa.

Furthermore, the risks to the taxpayer can't be overlooked as well as a key issue that Veronique de Rugy, a senior research fellow at the Mercatus Center brought to light during her testimony before the House Committee on Oversight and Government Reform on July 18, 2012: 
...The evidence strongly suggests that these programs fall short of their stated goals of developing clean energy and creating jobs. Of equal concern is the indirect damage to the nation’s economic fabric through distortion of market signals, cronyism, and mal-investment...
This Energy Department "green" loan program has also fostered "lemons," chaos as well as collateral damage, bailouts, lawsuits, and those teetering on the edge and outright failures.


The catastrophic climate change crusade continues...
President Obama and Secretary of State John Kerry
dining with world leaders at the 2015 UN Climate Summit
in Paris to "save the planet."  Photo from The Federalist. 

Still, the collusion between the Obama White House, Big Green, Big Energy, Dark Money, various left-wing groups, the liberal media, and others is palpable, which means that there is no end in sight to "saving the Earth from human toxins." This despite the fact that the "climate science" is NOT settled, even as they throw around their bogus "97 percent of experts" number around as gospel. Not to mention that even the "climate alarmist" can't decide whether an Ice Age is imminent or the planet will explode in a ball of fire if we keep breathing.


Nevertheless, despite the fact that our nation is drowning in debt, both President Obama and candidate Hillary Clinton have continually doubled down on "the green revolution," which calls for more mandates, regulations, rules and, of course, spending billions more of American taxpayer money. These climate policies and programs will continue to fuel corporate welfare and crony capitalism, such as the Abengoa case –– even as they ensure that their political pals (bundlers, big donors, etc.) benefit, while hurting the middle class and devastating the poor.

In fact, the Obama Regime has placed their "catastrophic climate change crusade" above the real face of evil: Terrorism –– and publicly, at least 22 times and counting...

More recently, in reference to ISIS, whom the left-wing loons claim was created by global warming, which took credit for the brutal and horrifying terrorist attacks in Paris that killed over 130 people and injured hundreds more, on November 24, The Federalists noted that "While standing alongside French president François Hollande in a joint news conference at the White House, Obama explained that his attendance at next month’s World Climate Summit will put ISIS in its place" –– heralding that his attendance with other world leaders, would be a "powerful rebuke to the terrorists."

Yep, this climate gathering, where world leaders arrived via their private jets to partake in serious meetings, while indulging in fine dining and other festivities to "save the planet," convened in Paris this Monday.

A global warming meeting where President Obama’s part "will send more CO2 into the atmosphere than 31 American homes‘ energy usage for an entire year. The president’s trip is equivalent to burning 368,331 pounds of coal or 797 barrels of oil, according to the Environmental Protection Agency’s carbon footprint calculator," documented Michael Bastasch of The Daily Caller.

And, according to The Federalist, "It’s estimated that around 50,000 carbon-spewing humans [elite world leaders, businesses and activists] will be participating in the Paris [two-week] climate conference this week" ––  with a slew of millionaires and billionaires (the regular Obama/Clinton cronies) positioning themselves to snag their "fair share" of the climate cash that is expected to flow from this gathering.

The Daily Mail adds: "The climate change summit in Paris that aims to tackle global warming will itself pump an estimated 300,000 tons of carbon dioxide into the atmosphere..."

But that's another story...



=============

The recap 

#1) Abengoa Solar, Inc (Abengoa S.A. and Abengoa Solar, LLC) was awarded $1.45 billion DOE stimulus loan in December 2010 for the  Solana Solar Project in Arizona.  
  • Rating BB+ by Fitch
  • This DOE deal was announced by President Obama on July 3, 2010, and finalized just before Christmas 2010. 
  • It has been reported that the Treasury committed to a $455 million grant for this project, yet it is unclear how much free taxpayer cash Abengoa received to date.
  • Solana became operational in October 2013.
  • Jobs: 1,700 construction and 90 permanent jobs

#2) Abengoa Solar, Inc. (Abengoa S.A. and Abengoa Solar, LLC) $1.2 billion DOE stimulus loan in September 2011 for the Mojave Solar Project in California. 
  • Rating BB by Fitch 
  • This DOE deal was announced in June 2011 and finalized in September 2011. 
  • Reports also state that the Treasury committed to $340 million grant for this project, but it is unclear how much taxpayer cash Abengoa scored to date here. 
  • According to the DOE, "the plant started commercial operations in December 2014." However, according to my sources, the Mojave Solar Plant has been operating off of a temporary certificate of occupancy (TCO) as opposed to a final permit, which expires on November 30, 2015.
  • Jobs: 830 construction and 70 permanent jobs

#3) Abengoa Bioenergy Biomass of Kansas LLC (ABBK) was awarded $132 million DOE stimulus loan in September 2011 for a biofuel plant in Hugoton, Kansas. 
  • Rating CCC by Fitch
  • This DOE deal was announced on August 19, 2011 and finalized on September 29, 2011. 
  • It was reported that the Treasury had committed to a $23 million grant for this project, yet I was informed that this figure is much higher. 
  • The DOE states that the "loan was fully repaid in March of 2015," yet it also states that the Hugoton biofuel plant is still "under construction." However, reports have emerged that this cellulosic ethanol plant "celebrated a grand opening" in October 2014.
  • Jobs: 300 construction and 65 permanent jobs

Below is a recap of the rampant corruption operating inside this Spanish firm here in the U.S. that ranges across numerous federal and state government agencies, which I had alluded to earlier in this post, that include the DOE, ICE, DOL, IRS, CEC, OSHA, the EPA and others.

This blockbuster story was made possible by droves of brave whistleblowers, of which three key sources have gone public exclusively at the Washington Free Beacon. Yet, since my August 2015 post, more informants have come forward, not only confirming what we have reported thus far, but additional horror stories occurring at Abengoa's "green" plants here in the U.S.  I just want to take this moment to thank you all –– and encourage you, that despite the fact that our government is pathetic for letting you down by not holding this corrupt company accountable, to continue the fight.

  1. Abengoa hired foreign workers (illegally) and gave them preferential treatment over Americans
  2. Abengoa paid its illegal employees under the table to avoid taxes 
  3. Abengoa's broke stimulus laws and committed DOE violations by routinely bringing in employees from Spain and Uruguay into the country for jobs Americans could have filled
  4. Abengoa systematically abused its American employees
  5. Abengoa committed insurance fraud
  6. Abengoa systematically stiffed its suppliers, driving some into bankruptcy 
  7. Abengoa systematically cut corners in design and construction
  8. Abengoa deliberately violated building and environmental codes, which has led to at least the Mojave Solar Project being a danger
  9. Abengoa also at the Mojave solar plant, used 
older, inefficient, and more expensive technology, thus not only wasting American taxpayers' money and critical natural resources, such as excessive amounts of water, but raises additional concerns. 
  10. Abengoa’s Solana solar project has experienced a toxic waste spill that is not being handled properly, which if true, there may be a major environmental mess lurking in Arizona. 
  11. Abengoa created numerous shell companies to boost profits. 
  12. Abengoa knowingly and willingly violated countless California laws, rules, statutes and regulations at their Mojave Solar Plant –– so many that this plant is gigantic "green" catastrophe. Worse case scenario is that this plant, which is supposed to save us from the "imminent global warming calamity," is a "ticking time bomb." 
  13. There was an unreported large toxic spill at Abengoa's Mojave Solar Plant: "Hundreds of gallons of Heat Transfer Fluid (HTF) was spilled and they just dispersed into the ground" 
  14. Despite California's dreadful drought, Abengoa's "Mojave Solar Plan is using 1,709,985 gallons of water per day" 
  15. Abengoa continues to abuse America
The Green Corruption Files Coverage (direct and otherwise) of the Abengoa Scandal:


Stay tuned... 


at 3 comments:

Monday, August 31, 2015

Abengoa Alert: New explosive whistleblower Intel reveals that the taxpayer-subsidized California Mojave Solar Plant is a massive green disaster


Mojave Solar Plant in California
Photo from Abengoa website
Last March, as a result of droves of brave whistleblowers, energy columnist Marita Noon and I began to unleash how the Spanish Conglomerate Abengoa, which bagged billions in U.S. green energy stimulus funds for three projects, committed a chain of "atrocities" on American soil.

In short, Abengoa intentionally violated American laws, codes and regulations that range across numerous federal and state government agencies, while on so many levels demonstrating a blatant disregard for our country and our citizens.

After these serious allegations against Abengoa were exposed, my inbox continued to be flooded with inquiries, confirmation as well as additional complaints and incriminating charges (even from South Africa) against this mega company.

The Abengoa transgressions go way beyond what we have reported thus far. In fact, new and explosive whistleblower Intel emerged in regards to the Mojave Solar Plant here in California, which prompted dozens of phone calls and countless hours of investigation over the course of the last two months –– all leading to a solar plant that at best is a massive "green" disaster. Worse case scenario is that this plant, which is supposed to save us from the "imminent global warming calamity," is a "ticking time bomb."
New "informants" (those that worked for ABEINSA EPC and Abengoa Solar, which are both subsidiaries of Abengoa the holding corporation, and/or those that worked at the Mojave Solar project in other capacities), whom have spoken on condition of anonymity, among other serious issues found at this California solar plant that included violating California State Seismic codes, came forward with startling revelations that will be disclosed in today's blockbuster Green Corruption File. 
  • The Mojave Solar Plant doesn't meet the minimal life safety standard of California Tile 24 
  • There was an unreported large toxic spill at the Mojave Solar Plant: "Hundreds of gallons of Heat Transfer Fluid (HTF) was spilled and they just dispersed into the ground"
  • The underground Heat Transfer Fluid tunnels were not ventilated 
  • Despite California's dreadful drought, "the Mojave Solar Plan is using 1,709,985 gallons of water per day" 
  • Abengoa continues to abuse America 
A favorite of the Obama White House, Abengoa was the second largest recipient of the Department of Energy (DOE) stimulus loans (the DOE's "Junk Bond Portfolio"). This Spanish company, who is heavily connected to high-profile Democrats, between July 2010 and September 2011, was awarded over $2.8 billion to construct two solar energy complexes in Arizona and California and a biofuel plant in Kansas.

According to the March 2012 House Oversight Committee Report, "The Department of Energy’s Disastrous Management of Loan Guarantee Programs," Abengoa received an additional "$818 million in Treasury grant commitments." Meanwhile, the Washington Free Beacon recently documented that Abengoa has "received more than $100 million in federal grants."

So, it seems that with so many grant figures jumping around, it's hard to say how much free money that Abengoa scored from the U.S. or if it came from the stimulus-created 1603 Grant Program, of which, as of August 3, 2015, has dished out $24.5 billion of free taxpayer cash.

However, we do know that Abengoa received plenty of money from the United States Export-Import Bank (Ex-Im Bank), which is another avenue where favored firms are awarded hundreds of millions of taxpayer-backed loans. Besides the fact there are some serious "conflict of interest" that involve the Bank and Abengoa, I found three Ex-Im Bank "green" transactions benefiting this foreign firm that transpired in 2011, 2012 and 2013, exceeding $267 million, which are chronicled in my June 2015 Green Corruption File.

Also, in December 2013, Abengoa was awarded a $2 million competitive award from the DOE’s SunShot Initiative “to improve manufacturing and assembly of their innovative large aperture parabolic trough collector over the next two years.”


Trouble in Paradise 

Abengoa, which website boasts, "operates in more than 80 countries and has a presence through local offices in more than 35 of them," has so many subsidiaries it will make your head explode.

As of late, there's trouble in paradise: This ranges from "burning through cash" to a plunge in stock as well as series of "Shareholder Alerts" that went out this month. "The Spanish firm Abengoa is facing a federal lawsuit from shareholders who say that the company misled investors about its financial plans," reported Lachlan Markay of the Washington Free Beacon.

There's even speculation of bankruptcy on the horizon, which may be the least of Abengoa's problems.

Still, today's blockbuster story evolves around Abengoa's California Mojave Solar Plant, of which was one of six firms that received “preferential treatment” and "fast-track approval" from the Department of Interior (DOI), under then-Secretary Ken Salazar and with the assistance of California Democrat Senator Diane Feinstein, to lease federal land in a no-bid process, which stirred up a Congressional probe a while back that was stonewalled.

By June 2011, the DOE offered Abengoa Solar "a conditional commitment for a $1.2 billion federal loan guarantee to build the Mojave Solar Project located in San Bernardino County, California, which was reported to be “utilizing advanced Concentrating Solar Power (CSP) technology” –– a technology that is more than 30 years old.

At the same time the loan was finalized in September 2011, "Abengoa signed a power-purchase agreement" with the powerful utility giant Pacific Gas and Electric Corporation (PG&E), another strong Democrat ally, "to buy the energy produced by the project for a period of 25 years" –– a deal that had been percolating years before.

Over three years later, the Energy Department declared that the Mojave Solar Plant that came with a $1.6 billion price tag and American taxpayers footing most of deal, was operational: "Construction began in 2011 and the project came online at the end of 2014,” boasts Abengoa.

There was even a grand opening in January 2015, celebrating "the impressive scientific advances and hard work that made the project what it is."

Hold up...

What Abengoa, the DOE and the limited amount of press coverage failed to mention in all that jubilation is that this solar plant is a huge mess. In fact, Abengoa had its "strategic planning meeting" in November of last year in Phoenix, Arizona. Later, Abeinsa EPC CEO, Leo Maccio, delivered it to his employees just before Christmas. The "ABEINSA EPC USA Strategic Plan 2015-2019 Initial Document" is where we find an incriminating admission:

Like the rest of Abeinsa EPC, Abeinsa EPC USA has had its worst year in its short history. However, we have had two of the biggest accomplishments: the successful completion of the biggest CCP solar plant project in the world ever (Solana), and in the most outstanding way, the delivery of the first plant in the USA for an external client, Mount Signal. We have also achieved the mechanical completion of the Hugoton plant, at great personal sacrifice from the Project's Leadership.

With these technological goals achieved, we should be more than happy, and we are; but we cannot forget Mojave, where we have lost a lot of money and have not properly managed the project...
While it's quite telling that those at the top admit that their solar plant in California is a loser, this concession only scratches the surface of what is going on behind the scenes.



New Informants Confirm Old Charges and File New Explosive Charges 
Against Abengoa's California Mojave Solar Plant 

Last year, numerous former American engineers for the Mojave Solar project alerted me to the fact that Abengoa “took short cuts in its design,” which means that instead of clean, safe, efficient energy, we have an inefficient, expensive, and hazardous mess on our hands.

These sources had also informed me that Abengoa's top management knowingly and willingly violated laws, rules, statutes and regulations at their Mojave Solar Plant, and in addition –– despite dire warnings –– did not comply with the proper requirements set by Occupational Safety and Health Act (OSHA) or California Energy Commission (CEC). What these engineers asserted at that time is that “these serious violations produced a solar plant that is dangerous.”

Before we tackle the new charges, and in order to grasp the severity of the situation, it's important to reiterate that these top engineers divulged that Abengoa committed CEC violations, specifically the California State Seismic codes –– you know... "building codes that are designed to protect property and life in buildings in case of earthquakes." 

Here's the excerpt:
Abengoa again used improper "design parameters" to design piping carrying synthetic oil with temperature about 738 degrees. Pipe supports and restrains do not meet the California State seismic codes. Based on Abengoa's design, and during an earthquake event, pipes out in the solar field will break / disconnect spilling close to one million gallons of synthetic oil, causing an environmental disaster. 
These errors will cost the state of California $10-15 million to repair if an earthquake hits the plant. 
By the way, this oil is flammable, and if the spill lands on electrical equipment, there is a possibility of a fire igniting over two-square miles.

Since California is prone to earthquakes and the "Big One" is predicted to be on its way, it's quite possible that if Abengoa failed to fix these issues, the above scenario could occur at any time. Our hope is that a full investigation into the Mojave Solar Plant as well as the numerous transgressions committed by Abengoa will take place first.


The Mojave Solar Plant Doesn't Meet the Minimal Life Safety Standard of California Tile 24

Needless to say, in July of this year explosive information hit my inbox in regards this same solar plant, which as stated, prompted dozens of phone calls and countless hours of investigation over the course of the last two months. These new "informants" disclosed that the inspection of the “construction activities” at Mojave have failed as well, while others allege that the plant is a “ticking time bomb!”

The inspections are in reference "to Title 24 California Building Code as well as ASME B 31.1, 31-3, NESC [The National Electrical Safety Code], NFPA [the National Fire Protection Association] and other codes and standards."
As of April 2015, the California Mojave Solar Plant had in excess of 12,000 code related deficiencies that needed to be addressed, of which approximately 8,000 were minor and 4,000 major.
Below are a few examples of these code deficiencies; some of which resulted in alarming incidences.

NOTE: BV (the on site inspectors) stands for Bureau Veritas, which is "a global leader in Testing, Inspection and Certification (TIC)," sometime in early 2010, was "selected by the California Energy Commission to serve as Delegate Chief Building Official (DCBO) for the Abengoa Mojave Solar Project" –– work that began once construction started in 2011. 

Power Plant piping violation: 

These new informants warned that the following violation occurred:
ASME piping code B31.1 is written for Power Plant applications, and B31.3 is for Chemical & Petroleum Process Piping. Any misapplication of this code will result in piping failure by releasing 748 degrees F steam or Heat Transfer Fluid (HTF) to the atmosphere, or the environment, causing harm.
BV argued all along that Abengoa should be using ASME B31.1 (power Plant Piping). Abengoa decided to use ASME B31.3 (Chemical Process Piping), since it is cheaper. Abengoa hired outside experts to justify their use of ASME B31.3.

If there is an operating failure in the installed piping, the expert should loose their license. This is something the State of California should enforce.

And here are two examples:

#1) GE Steam Turbine Failed
The steam turbine "saturation and flooding with water" is due to under sizing the condensate tank and improper sizing of the condensate pumps. This was designed by an inexperienced Indian Engineer under the direction of Diego Rodriguez, (Engineering Director Abeinsa EPC), whom is a "controls engineer" and has no idea of any of the mechanical engineering steam and fluid calculations and practices.
Saturated steam backed into the steam generator, flooding them condensate, which caused serious damage to the equipment and voided the warranty on the equipment. 

#2) Piping for the Cooling Tower
Abeinsa EPC engineers refused to follow the directions of the quality control engineer when spacers were placed for 36 " diameter piping to the cooling tower. The ASME codes state that the spacer must be 1 1/2 times the diameter of the spliced pipe in both directions, Abeinsa EPC used a 4 to 6" spacer pipe with one inch welds to both sides rendering the pipes with a weaken connection and subject to failure with time.

Cable Trays grossly overfilled:
Some of the cable trays, which are all over the plant and carry and support the cables, were grossly overfilled (about 90-98%). This violates the National Electric Code. Abeinsa EPC tried in vain to ensure that BV [the on site inspectors] would look the other way since this is how it is done in Spain.
Currently, this issue has not been addressed, which will ultimately cost tons of money to fix. 

Fire in the Motor Control Center Room: 
The Motor Control Center room was not properly ventilated according to the California Building Code, and in 2015 a fire erupted in the area short circuiting several panels and rendering a partial use of the plant.

Transformer blows up:
Abeinsa EPC personnel wired a transformer for the ISO phase bus duct out of phase and caused it to blow up. It eventually had to be replaced.

Emergency Showers and Eyewash Stations don't meet standard:
The supply lines for the emergency showers/eye wash stations at the Mojave Solar Plant have not been sanitized per standard. 
These emergency stations are used in case an employee is exposed to hazardous waste, vapors, chemicals, Heat Transfer Fluid [much more on HTF later], etc. But since they are not up to standard, workers who use them are at risk of getting unsanitized water in their eyes, etc., which could cause additional infections to the body.

When asked why Abengoa cut corners in the construction at Mojave, there were discussions that they needed to make the markers set by the Energy Department to ensure they received U.S. taxpayer money –– after all the loans are conditional. Worse perhaps, is the total disregard for American laws. I was notified that when Abengoa management was confronted about these "construction issues," the response was usually: “That’s how we did it at Solana" or "that's how we did in Spain" –– and even, "No, we're not going to fix it" and "we don't care."

Adding to this sinister scene, one informant added:
Spanish engineers from Spain with little or no experience, whom were ignorant of California codes, designed the plant.
These plans were later rubber stamped by California Registered Engineers that did not review or overlook the work as required by the California Professional Engineers act, subjecting them to losing their livelihood for pennies. Most work was subcontracted to Abengoa sister companies so they could have a foothold in the USA.

After pressing another informant on what the "construction deficiencies" mean, even assuming that this plant must be unsafe, I was met with this response:
It doesn’t meet the minimal life safety standard of California Tile 24.

Title 24 states that "all construction must provide for the minimum life safety of persons.” With that being said, there are multiple corrections required before a final Certificate of Occupancy can be issued. Does this mean it is unsafe? No. It just means they have not met the intent of the code.

And, sources close to the ground claim, “they [Abengoa] are currently addressing the issues and are also trying to negotiate on some of the issues.”

However, this update was followed by this scorching observation:
I take issue with the shear arrogance of Abengoa and Abeinsa playing a "catch us if you can" game. The way they conduct themselves as contractors is unethical and in my opinion borders on criminal.

While Abengoa celebrated their January 2015 grand opening, what was deemed from these new informants is that the Mojave Solar Plant has been operating off of a temporary permit as opposed to a final permit.

After some digging, this was confirmed through Abengoa's "Compliance Reports" found at the California Energy Commission public site (CEC): "On December 23, 2014, Abeinsa (AEPC) turned the site over to Abengoa to manage facility operations. However, AEPC remains on site and continues to perform construction, repair, and warranty-related activities. The temporary certificate of occupancy (TCO) expires on November 30, 2015."

Meanwhile, CH2M Hill, "a global leader in consulting, design, design-build, operations, and program management," is currently "assisting Abengoa Solar LLC. (Abengoa) in complying with CEC's Conditions of Certification." 

Nevertheless, in analyzing Abengoa's June 2015 Monthly Compliance Report (331 pages) found at the CEC, it states, "the AEPC is addressing the Bureau Veritas [BV] deficiencies list in order to obtain the final occupancy permit."

Sounds good?

Not necessarily, because these new informants allege that "it would require millions of dollars and a shut down of the plant to resolve the thousands of deficiencies at issue in order to get their Certificate of Occupancy."

Another informant made this critical assessment:
Due to the amount of errors in the design of this plant, it will never recover to 100% operation, and will never meet its contractual obligations to the state and federal Governments –– nor to their power purchase agreement.
There's even speculation that Abengoa will continue to apply and get a TCO until they either get caught or sell the place.


How will Abengoa get their final "Certificate of Occupancy" at Mojave?

Last year, former Abengoa employees had warned that the Spanish firm had gone through about thirty American engineers. And those that refused to "sign off" on the poor design, were intimidated, "black listed," ignored, demoted, and withstood other abuses until they were pushed out –– some quit, while others were terminated and forced to sign a "gag order."

Well, I was apprised that a similar situation occurred in the case of the Resident Engineer at the Mojave Solar Plant, whose main job was to ensure that Abengoa complied with the California laws, ordinances, regulations and statutes, but was met with resistance.
After three years of trying to comply with his legal obligation according to the CEC commissioning document to enforce compliance with all laws, ordinances, regulations and statutes as stated in Gen-4 of The California Energy Commissions Commissioning Document, and his moral obligation to protect the health, safety and welfare of the citizens of California, the Resident Engineer was replaced with a Chinese Structural Engineer on Jan 2015, whom has since left –– and under mysterious circumstances. 
The reason was because the upper management of Abeinsa EPC and the Resident Engineer had reached an impasse, where Abeinsa EPC refused to comply with applicable laws and provide the necessary documentation to complete the structural observation reports as mandated by the California Building Code and necessary to obtain the final use program. These reports certify under penalty of perjury that the construction was done according to approved drawings and specifications and that all changes were accounted for and according to California building code. 
The young Spanish engineers were very lapse in their record keeping and had modifications done to the construction without the approval of the Resident Engineer as mandated by CEC commissioning document. 
In June of 2015, the Resident Engineer and the "Engineer of Record" positions were both offered and then filled [upon approval] by a young Lebanese who worked on the Solana fiasco to close out the Mojave project.

This new Resident Engineer at Mojave is Richard Antoine Daoud, whom I was told "lives in Arizona, is not a U.S. citizen, and at the time of the construction of the plant, had no authority on the Mojave project." This information was accompanied by this warning:
If Mr. Daoud has been hired to certify that everything is fine in Mojave and generates Structural Observation Reports (visual observation of the structural system by a registered design professional for the general conformance to the approved construction documents at significant construction stages and at completion of the structural system), of which he did not witness the construction as required by Chapter 17 California building code, this will be a fraudulent report, subjecting him to disciplinary action by the California Engineers Board and possible deportation by ICE.

In addition, during the course of preparing this story, a breaking scoop emerged: "Abengoa is modifying the originally submitted and government approved electrical specifications to match the existing deficient electrical construction." 
Abeinsa EPC is caught with the dilemma that Bureau Veritas [on site inspectors] has constantly cited, whereas the actual constructed conditions did not match the specifications that were initially contracted. 
So they had the brilliant idea, which was presented by Mr. Jose. Luis Vivas, a licensed Californian Professional Engineer, to resubmit a modified specification to the permitting authority in order to match the inferior construction quality, which is an attempt to fix the mess that they created.

Buckle your seat belts, because we're just getting started...


Unreported Large Toxic Spill at the Mojave Solar Plant: 
Hundreds of gallons of Heat Transfer Fluid (HTF) was mishandled

Even as numerous tips have surfaced in regards to the environmental concerns at all three of Abengoa's taxpayer-subsidized green projects here in the U.S., it was the hazardous spill at the Solana solar plant that got me fired up, which was addressed during my May 2014 Green Corruption File. 
Due to Abengoa cutting corners in the design, which seems to be the case at all three projects, the Solana solar plant in Arizona that become operational in October 2013, once it started “pumping product,” a hazardous chemical spill followed. 
Heat Transfer Fluid (HTF) is what it's called. This HTF contains two components: diphenyl ether and biphenyl, and produces chemical releases (fumes and liquid) that are unsafe to touch, breathe, and ingest ­­–– even in small amounts.

Not yet corroborated –– although the spill has been confirmed –– sources came forward alleging that Abengoa’s safety measures are “downright negligent” and that they are blatantly “mishandling this spill,” thus putting workers at risk and violating Environmental Protection Agency (EPA) regulations.

Still, as some claim that the EPA was contacted and Abengoa [at the Solana plant] was cleared of toxic issues, others declare that this toxic waste –– thousands of gallons so far –– has now contaminated the soil surrounding the Arizona solar plant, with reported wildlife dying as a potential cause.

In understanding the dangers associated with this type of spill, a 2010 document by James Brathovde, an Engineering Geologist, makes this observation: "Occasional spills of HTF from either equipment failure or human error can result in the generation of contaminated soil."

I was also privy to an eight-page document entitled, "Material Safety Data Sheet," which was prepared by Solutia Inc. and dated May 18, 2012, explaining the toxicity of HTF (THERMINOL® XP), which also states that HTF "contains material which can cause liver and nerve damage."

Additionally, this "environmental precaution" is found: Keep out of drains and water sources" –– along with methods for cleaning up a spill. HTF is a material that "when discarded may be a hazardous waste as that term is defined by the Resource Conservative and Recovery Act (RCRA), 40 CFR 261.24, due to its toxicity characteristic," the document reports. 

Needless to say, these new informants allege that there was a big unreported HTF spill at the Mojave Solar Plant in late 2014, which was apparently mishandled: "Hundreds of gallons was spilled and they just dispersed into the ground," alerted one informant. I was told, "it was dispersed using various methods, one of which was to drive around a tank truck with the valve open in the solar field at night..."

Adding to this disturbing scenario is the sheer callousness surrounding this incident, which was described this way:
The Health and Safety Manager Larry Davis bragged about how he was able to doctor HTF spill reports, in addition to forcing employees to file false reports, not limited the HTF spills. Larry Davis also doctored the Total Recordable Incident Rates [TRIR] so that federal agencies would not be alerted to the unusual accident rate.

If this spill was not reported or handled properly, it is a clear violation of the U.S. Environmental Protection Agency’s rules as well as other regulatory agencies that deal with toxic spills.

In fact, Abengoa's June 2015 CEC Report documents the appropriate protocol:
The project owner shall document all releases and spills of HTF as described in Condition of Certification WASTE-9 and as required in the Soil & Water Resources section of this Decision. Cleanup and temporary staging of HTF-contaminated soils shall be conducted in accordance with the approved Operation Waste Management Plan required in Condition of Certification of WASTE-6. 
Still, these HTF spills seem to be a monthly event at the Mojave Solar Plant, which can be found inside Abengoa's "Monthly Compliance Reports" submitted to the CEC –– at least the ones that they are admitting to, along with other hazardous materials such as motor oil, gasoline chlorine, diesel and hydraulic fluid.

In peeking around you'll find that for the year 2014, they reported having HTF spills in August, September October, November and December. This year there were HTF spills reported in January, February, March, and Therminol VP1 in June –– with March 2015 being the largest: 
...On March 5, MSP reported 15 gallons of HTF spilled in Alpha West. It wasn’t until the end of the month that the spill was cleaned up, but upon inspection by the Designated Biologist the cleanup was found to be insufficient and contaminated soil remained.

In April 2015 they added the following documentation under the "Hazardous Material Spills" section:
Sixteen hazardous material spills (diesel and hydraulic fluid) were reported to biological staff in April. Abengoa provided immediate spill reports to the biological staff per BIO-7 requirements. The large increase in reported spills in April does not necessarily reflect an increase in hazardous material spills during the month but is a result of increased vigilance and cleanup of smaller spills that had not been reported, or were covered by equipment, during earlier construction activities. The clean-up of the HTF spill reported on March 5, that had not been adequately addressed as of the drafting of the March MCR was finalized on April 9. All reported spills were checked by biological staff who confirmed that the cleanup was sufficient to remove or reduce risk to wildlife.


The Underground Heat Transfer Fluid Tunnels Were Not Ventilated

Needless to say there's more potential danger at this plant, because additionally, I was cautioned that the underground HTF tunnels were not ventilated:
The former "Engineer of Records" was involved in the recommendation to make sure the underground HTF tunnels were well ventilated.
Unfortunately, the Engineering Director Diego Rodriguez, whom had no idea of any ventilation requirements, decided to ignore his recommendation and do nothing. This decision has the following impact of all equipment and controls installed in the tunnels that are underground: 
  • 36 inches in diameter, carbon steel piping carrying up to 749 degrees Heat Transfer fluid. 
  • Heat carried through this pipe will be trapped inside the tunnel, building up the heat in excess of 2,000, over time.
  • Heat buildup in the tunnel will start cooking and baking all power wiring, controls wiring, piping insulation, concrete walls, etc. 
  • Heat buildup will bake all items listed in (3) above to the point, where concrete will start flaking off, causing concrete walls premature failure, insulation on piping will fall off as it is damaged by the excess heat, insulation on the control and electrical wiring to the point, insulation will fall off and create short circuit in the wiring, resulting in false signals to the plant operator.

In summary: 
HTF underground pipe crossing in tunnels MUST be ventilated to ensure proper operating conditions to the equipment, piping, controls, structural supports, etc. Lack of ventilation will result in premature controls operation, pipe bursting and possible collapse of the tunnel due to excessive heat generated below grade.
Instead of lasting for 25 years or so, the tunnels will start falling apart prematurely, causing an environmental disaster, and short life for this plant. 
Since the federal government and taxpayers are the loan guarantors, Abengoa will walk away from the plant forcing the taxpayers to pay for their mistakes and lack of experience in ventilation requirements. 
This is just one of the many poor designs they have at the Mojave plant. OSHA and the Energy Department MUST investigate this issue.

I was informed that BV (Bureau Veritas), the on site inspectors, were constantly asking Abengoa to ventilate these tunnels; however, they were met with resistance: "Abengoa decided to circumvent the code concerns of BV," which was described by an informant:
Mr. Davis [the Health and Safety Manager that bragged about getting away with the large HTF spill, mentioned above] and the Abeinsa EPC Regional Director, Pablo Schenone, decided to change the classification of two tunnels under Harper Lake Road (a public access road maintained by San Bernardino County) that transfers superheated Heat Transfer Fluid (HTF) from the Alpha West solar field to the Alpha plant from a maintenance tunnel to a confined space.
The reasoning was so that Abeinsa EPC would save money by not buying air extractors or lighting as well as wiring and conduits. 

 
Not having air constantly recirculating, in the long run, will produce a toxic and super hot environment that may eventually blow up.

Moreover, under this tunnel (or just below these tunnels) runs a high-pressure gas line that feeds the neighboring solar plant. Both Mr. Schenone and Mr. Davis were informed of the potential danger and decided to go to forward with the plans not to ventilate the tunnels and should be held accountable if these tunnels should ever fail.


So, where the heck is the oversight? Where's our EPA leader Gina McCarthy, whom has vowed, "to fight climate change and improve air and water quality?" Oh, she's too busy at the global warming altar, while "waging war against the coal industry" and pimping solar projects like this one.

Do we have another toxic catastrophe in the works? After all, this solar plant is located in Hinkley, California where Erin Brockovich took on the mega utility giant PG&E ––  another Democrat stronghold that is tied to this solar plant.


Despite California's Dreadful Drought, the Mojave Solar Plant is 
Using 1,709,985 Gallons of Water Per Day

Besides the fact that this large solar plant continues to disrupt, endanger and destroy wildlife and their habitat such as desert tortoises, kit fox and other mammals, as well as birds and ravens –– and even residential neighbors in the area –– it is using millions of gallons of water each day: Over 1.7 million gallons to be exact.

And this particular water source, which took thousand of years to reach the aquifer, is not a renewable resource –– as aquifers do not get recharged every time it rains.

Ironically, this water is being pumped out of the deeper aquifer in Hinkley, California –– you know, the same groundwater where the first aquifer is contaminated with chromium 6 due to PG&E's negligence and arrogance that caused devastating damage in the 90's.


Last year, former engineers from the Mojave Solar Plant warned that Abengoa, at the California project, used older, inefficient, and more expensive technology –– thus not only wasting American taxpayers' money and critical natural resources, such as excessive amounts of water, but also their concern is the hundreds of thousands of gallons in synthetic flammable and dangerous oil used in this technology.

Water Use Chart from Mother Jones
August 3, 2015 
Nevertheless, my new informant confirmed the older technology claim and helped me locate the public evidence that documents how much water the Mojave Solar Plant is using: This year (2015), the plant is using 1,709,985 gallons of California water per day.

By comparison, the EPA records that "the average American family of four uses 400 gallons of water per day."

Moreover, a recent analysis by Mother Jones demonstrates that this California solar plant greatly overshadows the amount of water used at one Palm Springs golf course, which they say uses 800,000 gallons per day.

Considering that many of the golf courses in Palm Springs are now using recycled water, President Obama can rest assure that he's "saving our planet" as he boards Air Force One, "which consumes 5 gallons of jet fuel for every mile it flies" (and burning each gallon emits 21.1 pounds of carbon dioxide) to enjoy his frequent golf trips to my home town where we have a reported 124 golf courses.
But I digress...

So, let's get back to the this solar plant's reported water consumption where we find that from January 1, 2014 to December 31, 2014 the water use at Mojave (during the construction phase) was reported to be 61,120,451 gallons. However, now that they are operational, we find inside the June 2015 Monthly Compliance Report the following startling data:

SOIL&WATER-5

Beginning six (6) months after the start of construction, the project owner shall prepare a semi-annual summary report of the amount of water used for construction purposes. The summary shall include the monthly range and monthly average of daily water usage in gallons per day.

For June 2015, 25,468,000 gallons were pumped from Beta #4. Beta #3 wasn’t used for the month. In Alpha, 504,000 gallons were pumped from Alpha #1 (South), and 26,191,000 gallons were pumped from Alpha #2 (North). SBC used 36,000 gallons of site water for the month. The overall total site water usage for June 2015 is 52,163,000 gallons. The running total of water usage for construction/testing purposes from January 1, 2015 to June 30, 2015 is 227,428,000 gallons. To date, there were 133 working days for 2015 which equates to 1,709,985 gal/day. This equates to 37,904,667 gal/month, please see attachments.

At this rate, Mojave will be using about 624 million gallons of water for 2015. And, according to sources who are extremely knowledgeable about this project, the amount of water Abengoa is using at this plant exceeds what they were initially permitted –– as reflected in this calculation:
The calculations for the "design value" of the projected water use: 2 units (Alpha & Beta) x 1,120 gal/min. x 60 min/hr x 8 hrs/day x 365days/year = 392,448,000 gallons of water per year of water use. So, if Abengoa Solar is using 1,709,985 gal/day at Mojave = 624,144,525, which means that the actual water use is almost twice as what is permitted by the State of California. 

So, this solar plant, during a devastating drought, is using almost twice the amount of water that is permitted by California (454,856,004 if we use their 2015 monthly average). Unfortunately, this is the case unless Abengoa requested a permit for more water use. But I have yet to find it. And, who knows what the future brings.

Apparently, the CEC had already known as far back as 2009 about the massive amounts of water that certain solar plants would be using to "green our state." In fact, the New York Times highlighted both Mojave and another DOE stimulus loan winner: 
The Genesis Solar Energy Project would consume an estimated 536 million gallons of water a year, while the Mojave Solar Project would pump 705 million gallons annually for power-plant cooling, according to applications filed with the California Energy Commission.
The Genesis and Mojave projects will use solar trough technology that deploys long rows of parabolic mirrors to heat a fluid to create steam that drives an electricity-generating turbine. The steam must be condensed back into water and cooled for re-use. 

This is absolutely inexcusable on many fronts, starting with the fact that Abengoa could have used newer technology here in California. Second, is that California happens to be in the midst of the fourth year of a historic and dreadful drought: "The most severe in recorded history," declared Climate Progress, a site that is run by the progressive and powerful think tank, Center for American Progress (CAP), who happens to be the dark, driving force behind the president's massive green energy scheme. This not only includes Big "Green" Donors, but also roles that range from legitimate to shady lobbying practices, to the fact that numerous CAP "fellows" were at the helm of the green energy deal making, holding key positions inside the Obama White House, his Green Team, and his Energy Department.

We also know that Democrat Governor Jerry Brown, on January 17, 2014 (via EXECUTIVE ORDER B-29-15), proclaimed "a State of Emergency to exist throughout the State of California due to severe drought conditions."

Adding to the severity, "This spring, Gov. Brown mandated water use reduction for the first time in California's history. Starting in June, cities and towns were required to cut water use by 25 percent," reported Mother Jones

And while Brown, another global warming pusher, and his minions continue to blame climate change for our drought, he's been clamping down on businesses and American families use of water, using tactics such as threats of large fines and demanding that Californians take 5-minute showers.

Yet, while the rich and famous are not fazed by California's record drought, Brown is apparently not only giving agriculture a pass but Abengoa as well.

But then again, Brown, a champion of renewable energy, who is a fan of Abengoa and tight with PG&E –– two firms that clearly have an invested interest in the Mojave Solar Plant –– placed his stamp of approval on former Governor Arnold Schwarzenegger's green energy mandate. 

As a reminder: "The Golden State adopted a Renewable Portfolio Standard mandate to procure 33 percent of its electricity from renewable sources by 2020," noted Mike Gaworecki at Billmoyers.com. But Brown has taken it to new heights when he used his "fourth inaugural address to propose an ambitious new clean energy target for the state: 50 percent renewable energy by 2030."

Let's not forget too, that the Heat Transfer Fluid spills as well as the excessive amount of water being used at these large solar plants are not the only collateral damage on the horizon: Birds are being executed mid air at an alarming rate.

Therefore, it's interesting (frustrating is more like it) to observe how President Obama, Governor Brown and their wealthy green cronies  –– most of which are ECO-Hypocrites –– balance our water needs, our wildlife, and our environment with their intrusive, expensive and deceptive climate change agenda.

And then, there's this...



Abengoa Continues to Abuse America

Last year, it was enraging to hear about the rampant discrimination against American employees, which have occurred at all three of Abengoa's green projects here in the U.S. Yet, this round of informants added this piece of disturbing news:

Abengoa has a policy to pay its ex-pat employees 1000 dollars a month additional stipend for every child that was born in the USA. Some employees had up to three, while others double-dipped since both members of the couple were Abengoa employees. This policy was not afforded to American employees and it was an incentive to entice ex-pat employees to stay in the USA.

Meanwhile, I was given a long list of grievances that not only entailed the mistreatment of American workers, but of the incompetence and lack of experience of the Spanish engineers. Apparently, Americans that worked there were ridiculed, demeaned and demanded to work extremely brutal hours.

Other complaints ranged from Abengoa staff being dishonest, backstabbing, greedy, inhumane, destructive, etc. –– "they were just plain anti-American," I was told.

Now, rumor has it that this Spanish Conglomerate, who is occupying our land, taking our money, mistreating our citizens, and blatantly breaking our laws, won’t even allow an American flag to be flown at the California Mojave Solar Plant.

Well, that's absolutely pathetic.


Spanish Conglomerate Abengoa and its Powerful U.S. Political Connections 

Last year, we reported he following:
Abengoa’s Arizona facility has been under investigation by the Department of Labor (DOL) and Immigration and Customs Enforcement (ICE), since October 2013. 
A confidential source claims that ICE completed its investigation into the Arizona Solana solar project in March and are now turning to focus on the Mojave project in California. While the purpose of the investigations have not been disclosed, DOL is usually concerned with employee working conditions, while ICE would be interested in the legal status of foreigners employed at Abengoa. The IRS has indicated interest in the case as well, according to the source.

The latest inside information is that the Mojave’s stimulus funding has been frozen until their certified payroll is caught up and there could be a Department of Energy (DOE) audit following.


Where are we today? 

Apparently, Abengoa "has been hiding all their transgressions, lying to agencies, and even wining and dining those from the CEC and DOE." Not to mention, there's chatter circulating that "ICE was told to stand down..."

We also know that the California Energy Commission (CEC) has approved Abengoa's Palen solar project, which, for now, is moving forward with or without federal tax credits.

Despite the fact that the Energy Department as wells as various federal and state government agencies and oversight committees, elected officials, and a slew of media outlets, are well aware of the Abengoa's transgressions, we have yet to see justice or even a Congressional investigation or hearing.

Where's the "monitoring and oversight" promised by the new Energy Secretary Dr. Ernest Moniz during his confirmation hearing? Where's the press? Where's the special prosecutor?

Crickets...

Is this because this Spanish Conglomerate has an A-list of well-connected and powerful United States Democrats in their back pocket, which are well-documented inside these three reports:

  • August 4, 2012 –– How Democrats Say "Crony Corruption" in Spanish: Abengoa
  • March 30, 2014 –– SPECIAL REPORT: Inside the Obama Administration's Big Green Energy Deals With Abengoa: The cost, the connections and the collusion. 
  • June 2015 –– Inside Job: Export-Import Bank financing themselves, their friends and Obama-Clinton wealthy 'green' cronies.

With all that power –– big Obama-Clinton green cronies that include Al Gore and John Doerr, Bill Richardson, Carol Browner, Center for American Progress, Senator Dianne Feinstein, Pacific Gas and Electric, Governor Jerry Brown, McKinsey & Company, Citigroup, American Council on Renewable Energy (ACORE), as well as various lobbyists and key DOE Insiders  –– it's no wonder that Abengoa, not only scored almost $3 billion of American taxpayer money, but they continue to get away with their atrocities committed on American soil.



The Energy Department's Crony Stimulus Loan Program and its Dismal Green Jobs Record

Keep in mind that the 2009-Recovery Act, known as the trillion-dollar stimulus package, which has ballooned to nearly $2 trillion, was sold to the American people as a means to save the U.S. economy from the brink of disaster and create American jobs –– only to find its place in history "as a classic case of big promises and big spending with little results …"

Tucked inside was approximately $100 billion earmarked for renewable energy, which became "a special-interest feeding frenzy."

Let's not forget that, "2012 revelations" exposed the fact that the stimulus bill was about implementing the Obama administration’s agenda: "A key tool for advancing clean-energy goals and fulfilling a number of campaign commitments" –– to be exact.

The DOE Loan Guarantee Program, which comprises of three parts –– Section 1703, the stimulus-created 1705 Section and the Advanced Technology Vehicles Manufacturing (ATVM) –– to date, has dished out "more than $30 billion in loans, loan guarantees, and commitments covering more than 30 projects across the United States."

Nevertheless, The Green Corruption Files has been following the "green money" since late 2009, and reporting on the DOE's clean-energy loans (a disastrous program that had at one point awarded $34.7 billion), since April 2012, uncovering that in its wake, it has left a dirty mess.

First is the egregious reality that virtually all the winners of these loans, which includes Abengoa, have meaningful political connections to the president and other high-ranking Democrats: Obama bundlers, top donors, members of his 2008 National Finance Committee, large donors to the Democratic Party, and/or their friends.


At this point it's critical to reiterate that in reading hundreds of pages of those internal Energy Department emails, which were unleashed in October 2012 from the House Oversight and Government Reform Committee and that included a memorandum, Appendix I and Appendix II, is where we find startling evidence that the president, the White House, Secretary Chu, and certain DOE officials lied about how they handled the green energy loans on various fronts –– which was followed by secrecy, cover-ups, and even perjury.

These bombshell emails reveal that most of the DOE loans were rushed (a fast-track process imposed at the “POTUS-level) and approved for political reasons: Visits, speeches, announcements, photo ops, and talking points for the president as well as for the purpose of helping those connected to the companies seeking the loans such as CEO's, investors, and Democrat politicians, which goes beyond subsidizing Nevada companies in order to help Senator Harry Reid win his 2010 reelection campaign.

They also expose the cozy relationships DOE officials and advisors had during the loan review process with loan applicants and their CEO's, lobbyists, investors, etc. It's no surprise that they had meetings and calls with DOE officials and Energy Secretary Steven Chu, but there are documented meetings and calls with the president, VP, and WH as well as plenty of "green fraternizing" going on –– bike riding, coffee meetings, sleepovers, "beer summits," Al Gore parties, dinners, Democrat fundraisers, and so on.


While these stimulus loans were dished out between 2009 and 2011, during Hillary Clinton tenure as was secretary of state, until we find all of Hillary's State Department emails, we will never know if she had any influence over these "green loans." However, we do know that while she was secretary of state, Hillary was in cahoots with other green corruption players as well as her foundation when she championed the "global green stove movement" at a price tag that may well exceed $325 million of taxpayer money.


We also know that Hillary Clinton and President Obama share the same "Big Green Cronies" (winners of Obama's green cash) in a variety of ways, but more specifically as die-hard donors to the Bill, Hillary and Chelsea Foundation.

Here's an excerpt:
At a quick glance, this includes Bill & Melinda Gates Foundation (tied via Sapphire Energy), Duke Energy, NRG Energy, Goldman Sachs, Open Society (George Soros), Citigroup, General Electric, Google, Soros Foundation, Alcoa Inc, Bank of America Corporation, CH2MHill, Solazyme, Tom Steyer, Heather Podesta, NextEra Energy, Nissan North America, Inc, Enphase Energy, and General Motors Company. There's also AREVA, L. John Doerr, First Solar, Honeywell Inc, Elon Musk, Pepco Holdings, Inc, Suntech Power Holdings Co., Ltd, U.S. Geothermal Inc, Good Energies, Pacific Gas & Electric Company, Silver Spring Networks, Solar Millennium AG, Southern Company, the AES Corporation, and more. 
In the mix are radical left-wing individuals and groups that participated behind the scenes, such as Carol M. Browner, the Joyce Foundation, and the Tides Foundation, as well as many other Clinton Foundation donors that are in the green energy business worthy of investigation.

Recently, both President Obama and candidate Hillary Clinton have doubled down on their catastrophic climate change crusade, which calls for more rules and spending that will continue to fuel corporate welfare and crony capitalism, while hurting the middle class and devastating the poor.

If you recall, during Barack Obama’s acceptance speech, he made this statement: "I'll invest $150 billion over the next decade in affordable, renewable sources of energy -- wind power, and solar power, and the next generation of biofuels -- an investment that will lead to new industries and 5 million new jobs that pay well and can't be outsourced."

President Obama later claimed that 2009-stimulus package would create an enormous influx of American green jobs, which included the Energy Department's stimulus-funded "green" projects (the 1705 loans) that from 2009 until 2011, in excess of $16 billion was loaned to 26 projects, of which 22 were rated with a “Junk" status, including the three loans that went this Spanish firm.
After eliminating SoloPower and Prologis (two defunct stimulus loans), this now places $13.72 billion of American taxpayer money at risk, which also carries a dismal green jobs track record –– created, saved, direct and indirect as well as those that "touched lives" or were "recycled."

In fact, in analyzing the DOE's 24 projects (see chart below), we find that they only generated 700 permanent jobs, which amounts to about $19.7 million per job. Even if you factor in the 9305 temporary jobs (10,005 total) this still demonstrates that these loans had nothing to do with jobs.


1705 DOE STIMULUS LOANS:
 Jobs = Permanent/temporary (construction)
*Bankrupt: calculations will only include money drawn from the DOE loan program
  1. 1366 TECHNOLOGIES: September 2011 for $150 million –– JOBS = 70/50
  2. ABENGOA BIOENERGY: September 2011 for $132.4 million –– JOBS = 65/300
  3. *ABOUND SOLAR: December 2010 for $400 million / Bankrupt June 2012 NOTE: The DOE loan drawn, as of January 2014, is at $68 million, and the recovered amount is listed as "pending," however the Heritage Foundation a while ago had placed the Abound bad bet at total at $790.3 million.
  4. AGUA CALIENTE (NRG Energy and others): August 2011 for 967 million –– JOBS = 10/400
  5. ALAMOSA (Cogentrix, a subsidiary of Goldman Sachs): September 2011 for $90.6 million –– JOBS =5/75
  6. ANTELOPE VALLEY SOLAR RANCH (Exelon): September 2011 for $646 million –– JOBS = 20/350
  7. BLUE MOUNTAIN: November 2011 for $98.5 million –– JOBS = 14/200
  8. CALIFORNIA VALLEY SOLAR RANCH (NRG Energy): September 2011 for $1.2 billion –– JOBS = 11/350
  9. CRESCENT DUNES (SolarReserve and others): September 2011 for $737 million –– JOBS =45/600
  10. DESERT SUNLIGHT (NextEra Energy, GE and others): September 2011 for $1.5 billion –– JOBS = 15/550
  11. GENESIS (NextEra Energy): August 2011 for $852 million –– JOBS = 47/800
  12. GRANITE RELIABLE: September 2011 for $169 million –– JOBS = 6/198
  13. IVANPAH (NRG Energy, Google and BrightSource Energy): April 2011 for $1.6 billion –– JOBS = 61/1000
  14. KAHUKU (First Wind): July 2010 for $117 million –– JOBS = 6/200
  15. MESQUITE (Sempra Energy and others): September 2011 for $337 million –– JOBS = 12/300
  16. MOJAVE: (Abengoa S.A. and Abengoa Solar, LLC): September 2011 for $1.2 billion –– JOBS = 70/830
  17. ONE NEVADA LINE (formerly known as SWIP-S): February 2011 for $343 million –– JOBS = 15/400
  18. ORMAT NEVADA: September 2011 for $350 million –– JOBS = 64/332
  19. RECORD HILL: August 2011 for $102 million –– JOBS = 8/200
  20. SHEPHERDS FLAT (use to be a General Electric project): December 2010 for $1.3 billion –– JOBS = 45/400
  21. SOLANA (Abengoa S.A. and Abengoa Solar, LLC): December 2010 for $1.45 billion ––JOBS = 90/1700
  22. *SOLYNDRA: September 2009 for $535 million –– Bankrupt: September 2011 NOTE: The DOE loan drawn was $528 million, recovered is $0, yet the Heritage Foundation placed the Solyndra bad bet at $570 million.
  23. STEPHENTOWN SPINDLE: Loan restructured in March 2012 for $25 million –– JOBS = 8/20 NOTES: This was a project of *Beacon Power that went bankrupt in October 2011 and the loan was for $43 million in August 2010. And while it is unclear how much we lost from the original DOE loan, the Heritage Foundation had placed the Beacon bad bet at $77 million.
  24. USG OREGON: February 2011 for $97 million –– JOBS = 10/150 

But it's much worse because President Obama's green jobs revolution –– a mantel that Hillary has taken up in her campaign by "mimicking Obama and the promises of millions of green jobs" –– has been rife with hype, corruption, and failure as well as absolute insanity.

And, I don't dare digress into the "green energy outsourcing" that has occurred under this administration, nor how Abengoa not only violated at least the spirit of the stimulus law by shipping in workers into the U.S. from Spain and Uruguay, but they also broke DOE loan stipulations by not hiring locally first.

Even before the big Mojave $1.2 billion deal, in 2010, the DOE awarded Abengoa a $1.45 billion loan for their solar plant in Arizona (Solana), whereas President Obama, on July 8, 2010 even addressed our nation by praising Abengoa Solar, claiming that this project would "create jobs right here in America."


Hold up....

In calculating just the three DOE stimulus loans (remember Abengoa, in 2011, also snagged $132 million loan for their biofuel plant in Kansas) that cost U.S. taxpayers over $2.8 billion (not counting the grants), you'll discover that the "Abengoa jobs" averages to about $12.4 million per permanent job.

Worse is that we learned, via former employees, that many of the Abengoa jobs at the U.S. solar and biofuel projects did NOT go to Americans. In fact, Lachlan Markay of the Washington Free Beacon apprised us of following statement that came from the former human resources director at another Abengoa subsidiary: "The company routinely hired Spanish nationals to fill even menial jobs at its stimulus-funded projects."

So much for American green jobs!

Meanwhile, Obama's Energy Department, Big Green as well as various left-wing organizations and the liberal media, who are all in cahoots, are spinning that this controversial loan program is great for America and is making a profit, while failing to mention not only the cronyism and corruption, but the risks, the collateral damage and the bailouts associated.

Adding to the clutter are the green projects that were pulled, those surrounded by chaos as well as a current legitimate lawsuit aimed at the Department of Energy.

What about the mega failures such as Solyndra (over $500 million), Beacon Power ($67.4 million), Abound Solar ($494.3 million), Vehicle Production Group ($50 million) and Fisker Automotive ($160 million).

In addition are those teetering on the edge: For example the California Ivanpah Solar Plant ($1.6 billion DOE stimulus loan), the Blue Mountain project in Nevada ($98.5 million DOE stimulus loan), and the California Valley Solar Ranch ($1.2 billion DOE stimulus loan).

And what about the Abengoa calamities?

While the stimulus loan program expired at the end of 2011, the DOE has “more than $40 billion in remaining loan and loan guarantee authority to finance innovative clean energy projects and advanced technology vehicles manufacturing.”

For some time (since late 2013), the Energy Department has been soliciting applications under the 1703 and ATVM programs, yet in realty all they need to do is call their cronies. So far two deals have gone down, but where they stand remains murky.
  1. August 2014: Another Taxpayer-funded ‘Green’ Gamble: Energy Department doles out $150 million to Cape Wind’s expensive, risky offshore wind project tied to high-profile Democrats
  2. April 2015: Energy Department Fuels More Corporate Welfare: Awards politically connected corporate giant Alcoa $259 million 'green' car loan

At any rate, this federal program is just part of the cronyism and corruption operating behind the scenes when it comes to the the Obama Regime's large, expensive, deceptive and intrusive climate change agenda.


In closing… 

As our nation drowns in debt, the Obama's Energy Department has already disbursed in excess of $252 billion. Meanwhile, since 2009 the president's aggressive and deceptive plot to "save the planet" already exceeds  $200 billion of U.S. taxpayers, which factors in both stimulus and non-stimulus funds.

These funds are not only being dispersed out of the DOE and the Ex-Im Bank of the United States, but also the Department of Agriculture (USDA), Department of Defense (DOD), the Environmental Protection Agency (EPA), as well as other federal, state, and local government agencies and programs that are giving out "green" subsidies.

And let's not forget that unknown to the American public is another green government freebie blowing out of the stimulus package. The 1603 Grant Program "offered project developers the option to select a one-time cash payment in lieu of taking the Investment Tax Credit (ITC) or the Production Tax Credit (PTC), for which they would have otherwise been eligible.” Administered by the Treasury Department, as of August 3, 2015, this program that was also touted as a jobs creator (yet most are temporary), has dished out $24.5 billion of free taxpayer cash. 

Still, hundreds of billion of green energy spending is not enough because this scheme works in conjunction with the ongoing climate change mandates, rules, regulations and executive orders in order to control every aspect of our lives –– all surrounded by an enormous fear-mongering campaign to scare the masses into submission.

However, these figures don't account for how U.S. agencies, this past February, "committed some $4 billion for solar energy companies to build up green energy in India."

And what about the billions of dollars that the Obama administration has spent to "save the developing world from the presumed ills of global warming, mainly through a program called Global Climate Change Initiative, which was recently documented by Judicial Watch.

And so on...

Meanwhile, James Delingpole recently exposed how “The global climate change industry is worth an annual $1.5 trillion, according to Climate Change Business Journal. That’s the equivalent of $4 billion a day spent on vital stuff like carbon trading, biofuels, and wind turbines.”

Whether it’s an Ice Age looming across the globe freezing the lands and sea, or the planet is about burn up in a big ball of fire due to global warming, here in the United States it's an expensive green energy revolution that is robbing American taxpayers of not only our cash but our liberty –– and in the case of Abengoa, our dignity.

God Bless America,

-c


===================


Below are notes worthy posting:

 The Abengoa U.S. Taxpayer Funded Projects: 


Abengoa Solar, Inc –– the Solana Solar Project in Arizona:

Rating BB+ by Fitch: $1.45 billion DOE stimulus loan in December 2010, and the Treasury committed to a $455 million grant.
The DOE deal was announced by President Obama on July 3, 2010, and finalized just before Christmas 2010. It became operational in October 2013.

Jobs: 1,700 construction and 90 permanent jobs 


Abengoa Solar, Inc –– the Mojave Solar Project in California:

Rating BB by Fitch: $1.2 billion DOE stimulus loan in September 2011 and the Treasury committing to $340 million grant.

This DOE deal was announced in June 2011 and finalized in September 2011. According to the DOE, "the plant started commercial operations in December 2014."

Jobs: 830 construction and 70 permanent jobs 


Abengoa Bioenergy Biomass of Kansas LLC (ABBK):

Rating CCC by Fitch:  $132 million DOE stimulus loan in September 2011, and the Treasury committing to a $23 million grant, yet I was informed that this figure is much higher.

This DOE deal was announced on August 19, 2011 and finalized on September 29, 2011. The DOE states that the "loan was fully repaid in March of 2015," yet it also states that the Hugoton biofuel plant is still "under construction."

However, reports have emerged that this cellulosic ethanol plant "celebrated a grand opening" in October 2014.

Jobs: 300 construction and 65 permanent jobs


Notes:

  • Photos are snapshots from the DOE Loan Guarantee Program site, which was last updated March 2015
  • S&P and Fitch consider BB+ and lower ratings “speculative” and “not investment grade"


Abengoa Atrocities Recap 

Since we have new Intel to add to our list, here's a recap of the rampant corruption operating inside this Spanish company here in the U.S. that ranges across numerous federal and state government agencies (that we know of): The DOE, ICE, DOL, IRS, CEC, OSHA, and the EPA.  This blockbuster story was made possible by droves brave whistleblowers, of which three key sources have gone public exclusively at the Washington Free Beacon. Thank you! 

  1. Abengoa hired foreign workers (illegally) and gave them preferential treatment over Americans; 
  2. Abengoa paid its illegal employees under the table to avoid taxes; 
  3. Abengoa systematically abused its American employees; 
  4. Abengoa committed insurance fraud; 
  5. Abengoa systematically stiffed its suppliers, driving some into bankruptcy. 
  6. Abengoa systematically cut corners in design and construction; 
  7. Abengoa deliberately violated building and environmental codes, which has led to at least the Mojave Solar Project being a danger; 
  8. Abengoa also at the Mojave solar plant, used 
older, inefficient, and more expensive technology, thus not only wasting American taxpayers' money and critical natural resources, such as excessive amounts of water, but raises additional concerns. 
  9. Abengoa’s Solana solar project has experienced a toxic waste spill that is not being handled properly, which if true, there may be a major environmental mess lurking in Arizona. 
  10. Abengoa created numerous shell companies to boost profits. 

Now we can that Abengoa knowingly and willingly violated countless California laws, rules, statutes and regulations at their Mojave Solar Plant –– so many that this plant is gigantic "green" catastrophe. 



 The Green Corruption Files Coverage (direct and otherwise) of the Abengoa Scandal:

Stay tuned...



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