A report submitted by the U.S. House of Representatives Committee on Energy and Commerce found that U.S. subsidiaries of foreign corporations have received around one-quarter of $16 billion from a Section 1603 grant program.
The report also concludes that Section 1603 grant program failed to meet its goal. While billions of dollars have filled the pockets of overseas firms, promised permanent jobs and economic growth in the U.S. have not been fulfilled.
The statistics reveal that foreign company's, especially European and Asian renewable energy corporations, have hugely benefited.
The program was basically aimed at promoting green energy development projects (solar, wind, geothermal and fuel cell projects), increasing U.S. economy and businesses and creating jobs in the country.
Approximately $10.8 billion (68 percent) of the grant is dedicated to wind and another $3.8 billion (24 percent) was for solar projects. Among the largest individual recipients of Section 1603 grants is Iberdrola Renewables LLC, the U.S. division of Spanish parent company Iberdrola, S.A., with $1.8 billion.
Also the program has been heavily criticized for not churning enough sustainable and durable jobs. The money was given to these companies so that they could employ American workers.
"With $16 trillion in debt, we cannot afford to send one out of every four taxpayer dollars overseas for a program that has failed to create the jobs promised," Energy and Commerce chairman Fred Upton told Fox News.
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