The Fatality of ECOtality: Yet Another Government-Backed Green Energy Failure

The federal government has quite a history of funneling taxpayer dollars into failed green energy enterprises. News broke this week that another Solyndra-esque scenario is unfolding: the U.S. Department of Energy invested a whopping $115 million-worth of stimulus funds into ECOtality, a company which produces charging stations for electric vehicles. On Monday, the company filed for bankruptcy, citing a failure to sell sufficient amounts of product to fund its operations for the rest of the year.
Former CEO of ECOtality, Jonathan Read, has also been blamed for the downfall of ECOtality, with accusations linking him to stealing money from the company and using inside connections with the Department of Energy to further fund the ECOtality. After the Solyndra investigation revealed that DOE loan guarantees had been bankrolling political allies of the Obama White House, perhaps it comes as a surprise to no one that funds continued to go out the door to companies that obviously had been given little, if any, scrutiny. However, this is unlikely to be the last story in what is a damning chronicle of the failures of the so-called stimulus program. 
The trillion dollar spending and debt program overwhelmingly failed on many fronts; job creation remains unimpressive, and promises that the program would be subject to accountability and transparency have long been forgotten. Thanks to efforts of small-government advocates in the House of Representatives, federal spending has actually closed in on its pre-stimulus levels over the past two years, but there is clearly much more work to be done.

TAGS: Spending, Business, Energy