[Congressional Record Volume 162, Number 61 (Wednesday, April 20, 2016)]
[Senate]
[Page S2325]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ATVM LOAN PROGRAM AMENDMENT
Mrs. FISCHER. Mr. President, I am thankful the Senate is taking up
the appropriations bills. The appropriations process is the only way
citizens can truly hold their elected representatives accountable. It
also allows the American people to see just what the priorities are for
the Senate.
Through my votes upon appropriations bills, I have to decide which
government programs to prioritize and which government programs need to
be cut. These are tough choices, but Nebraskans sent me to Washington
to make these hard decisions.
Again, I am hopeful that the Senate is taking up these bills and that
we can make important spending decisions on behalf of the American
people. That is why I am proud to join Senators Coats, Toomey, and
Flake to submit an amendment that targets what I see is overspending in
the Energy and Water appropriations bill.
This amendment would wind down the Department of Energy's troubled
Advanced Technology Vehicles Manufacturing Loan Program. The ATVM
Program was designed to provide loans for businesses that produce fuel-
efficient, advanced-technology vehicles and components in the United
States. The program was created in 2007. In 2009, Congress appropriated
$7.5 billion in subsidies to cover $25 billion in loans authorized
under that program.
Unfortunately, as Senator Coats and Senator Toomey have pointed out,
this program has struggled for many years. The record speaks for
itself. Take Fisker Automotive as an example. In April of 2010, Fisker
received a loan through the ATVM program for the purpose of producing
two lines of plug-in hybrid vehicles at its plant in Wilmington, DE. In
2011, because Fisker was not meeting its performance targets, the DOE
suspended its original loan of $529 million.
Unfortunately, $192 million in taxpayer dollars had already been
loaned to the company. Fisker halted operations, and they filed for
bankruptcy in November of 2013. The company's ATVM loan was sold at
auction for $25 million and the DOE was able to recoup $28 million from
an escrow account. However, this loan still resulted in a $139-million
loss for taxpayers.
In February of 2014, Fisker's assets were auctioned to a Chinese
manufacturer, Wanxiang, through the resulting bankruptcy proceedings.
This was one of the many failures resulting from the ATVM Program.
In 2013, a Government Accountability Office report found few auto
manufacturers and program applicants willing to participate in the
program due to high costs and the limited benefits. As a result, the
Secretary of Energy announced a number of changes to the ATVM Program
in April of 2014. Not a single new loan has been approved since the
announcement of these revisions.
This program is a clear example of waste. It reveals the dangers of
allowing our government to pick winners and losers in the private
sector. That is why I am here today to join Senators Coats and Toomey
and Flake in offering an amendment that would prohibit new loan
applications from being reviewed if they are not submitted by the date
of this bill's enactment. Furthermore, our amendment would prohibit any
loan credit subsidies after the end of fiscal year 2020. Through these
provisions, we can responsibly wind down a very ineffective program.
Our national debt continues to grow, and it now exceeds $19 trillion.
According to the March 2016 report of the Congressional Budget Office,
annual deficits will exceed $1 trillion in 2022 and every year
thereafter. This makes the need for commonsense provisions like ours
all the more urgent. We simply cannot afford to continue spending money
on programs that are not effective.
I urge my colleagues to vote for this sensible amendment when it is
brought up for a vote.
Mr. President, I yield the floor.
I suggest the absence of a quorum.
The PRESIDING OFFICER (Mr. Perdue). The clerk will call the roll.
The senior assistant legislative clerk proceeded to call the roll.
Mrs. FISCHER. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
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