Californians for Renewable Energy (CARE) Sues Energy and Treasury Departments Over Loan Guarantees

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Department of Energy Approved Solyndra and Other Projects Allegedly Without Required Oversight, Say Plaintiffs.

On November 28, 2011, CAlifornians for Renewable Energy (CARE) and Michael Boyd filed a lawsuit in the U.S. District Court for the District of Columbia, Case# 1:11-cv-02128; to challenge more than two dozen alleged federal loan guarantees illegally issued by the U.S. Department of Energy (DOE) under Section 1705 of the Energy Policy Act of 2005. The lawsuit seeks to invalidate 26 loan guarantees for utility-scale renewable-energy projects, including guarantees to the now-bankrupt Solyndra Inc. and Beacon Corporation, because allegedly DOE issued them before putting in place regulations that would enable it to properly vet projects and make sure they are unlikely to fail.

“No matter how you feel about federal loan guarantees as a matter of policy, the reality is that Congress passed a law prohibiting DOE from issuing guarantees until it put regulations in place to protect the taxpayer from Section 1705 projects with no realistic chance of success,” alleged Cory Briggs, the attorney for the plaintiffs.

“The Solyndra and Beacon bankruptcies are Exhibit A for why DOE should have issued regulations before putting taxpayers on the hook.”

Michael Boyd, the president of CARE and a plaintiff, lamented the way that big business with connections to the White House under Presidents Bush and Obama where given such easy access to the public’s purse. He describes the loan guarantees as “corporate cronyism at its worst.” CARE works to promote public education concerning renewable energy and has been a consistent advocate for environmentally and community-sensitive energy projects that reduce greenhouse gases and that are commercially viable without inappropriate taxpayer subsidies.

For more information about the CARE suit, please visit http://www.calfree.com/Stimulus Complaint.pdf. For more information about the lawsuit, please contact Cory Briggs at 909-949-7115 or at info(at)briggslawcorp(dot)com.

Robert Lundahl
Freshwater Bay Pictures, LLC
P.O. Box 429
Solana Beach, CA 92075
Phone: (415) 205-3481. Email: robert(at)studio-rla(dot)com

Cory J. Briggs    
Briggs Law Corporation    
San Diego County:
814 Morena Boulevard, Suite 107,
San Diego, CA 92110    
Inland Empire: 99 East "C" Street, Suite 111,
Upland, CA 91786    
Telephone: 619-221-9280 (San Diego), 909-949-7115 (Inland Empire)
E-mail: cory(at)briggslawcorp(dot)com

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Michael Boyd
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