California 4th District Congressman, Tom McClintock’s Taxpayer Protection Legislation to Repeal Risky Stimulus Loans has been approved by The House Natural Resources Committee.
The target for this new legislation is part of the 2009 Stimulus Act.
McClintock’s legislation is H.R. 2915, titled the American Taxpayer and Western Area Power Administration Customer Protection Act of 2011. McClintock proposes repeal of the 2009 Stimulus Act’s new $3.25 billion Western Area Power Administration (WAPA) loan authority, including the taxpayer bailout provision for failed renewable energy transmission projects.
“Recent events make it clear that billions of dollars of taxpayer funds have been placed in jeopardy to support companies that obviously lack the merit to attract private investments.” – Congressman McClintock.
Congressman McClintock says taxpayers are footing the bill for billions of dollars handed out to unviable companies. He thinks that some of the companies have relied on political connections with government officials to access taxpayer funds.
McClintock wants the energy industry to raise its own capital through its own merit rather than to perpetuate what he calls the “crony capitalism that is now running rampant through this government.”
The legislation in H.R. 2915 specifically aims to repeal Section 301 of the Hoover Power Plant Act of 1984. That section was amended by the Stimulus Act to create the new borrowing authority. H.R. 2915 does not apply to projects already approved before September 15, 2011.
The next step for this legislation is a vote in the House of Representatives.