Audit: TX "Clean Coal" Grantees Spent $1.3 Mil. On Limos, Spas, Alcohol, $1.2 Mil. On Lobbying

[hatrack]

EDIT

The Texas Clean Energy Project was one of several big carbon capture initiatives for which DOE allocated funds following President Obama's 2009 stimulus package. It envisioned a commercial coal plant near Odessa, Texas, capturing and storing more than 90 percent of its CO2 emissions. In 2010, DOE's Fossil Energy Office awarded TCEP a cooperative agreement under the "Clean Coal Power Initiative," with DOE expected to cover $450 million. The National Energy Technology Laboratory (NETL) helped implement the program.

After years of challenges in obtaining financing and missing deadlines, Fossil Energy initiated actions to terminate the project two years ago (E&E News PM, May 26, 2016). Last year, Summit Texas Clean Energy LLC, TCEP's developer, filed for bankruptcy protection, and the venture never broke ground.

The audit reported that Summit and associates used more than $1.3 million for "questionable" or prohibited purposes, including catering on a private jet and banquet room rentals. The IG said invoices with spa, limousine and alcohol expenses were particularly concerning because they included Summit employees traveling with one consulting firm, increasing the risk of double billing.

Another $1.2 million may have been used illegally for prohibited lobbying services. In one instance, Summit may have overstated the value of a cost share with a land purchase by $384,000. The IG said problems arose in part because Fossil Energy didn't identify improper lobbying activities and approved funds without complete paperwork. In one example, invoices for $16.9 million in subcontractor costs did not include details about the nature of services provided or the number of hours worked.

EDIT

https://www.eenews.net/stories/1060073765

[hedda_foil]

1. Isn't that speshul.