The Department Of Energy Failed To Disclose Concerns That ECOtality, A Green Tech Company Awarded $135 Federal Funding, Was Headed Toward Bankruptcy. “The Department of Energy failed to disclose concerns about a green-technology company that won $135 million in federal funding but ended up filing for bankruptcy in September, according to a watchdog report released this week.” (Josh Hicks, “Energy Dept. Failed To Report Concerns As Green-Tech Firm Was Heading For Bankruptcy,” Washington Post , 11/7/13)
ECOtality Is Still Due To Receive $26 Million In Funding. “DOE Inspector General Gregory Friedman noted that the firm, San Francisco-based Ecotality, is still due to receive $26 million from the agency for testing electric vehicles.” “The the agency has suspended firm’s Recovery Act money, but not a $26 million award for vehicle testing. The Energy Department is not required to pay for the latter unless the work is done.” (Josh Hicks, “Energy Dept. Failed To Report Concerns As Green-Tech Firm Was Heading For Bankruptcy,”Washington Post , 11/7/13)
The Administration Knew As Early May That ECOtality Was Not On Schedule To Meet An Important Milestone. “The report said the DOE knew in May that Ecotality was not on track to meet an important milestone for a grant to install charging stations and that agency officials failed to disclose that information for an audit that the inspector general’s office released roughly two months later.” (Josh Hicks, “Energy Dept. Failed To Report Concerns As Green-Tech Firm Was Heading For Bankruptcy,” Washington Post , 11/7/13)
Inspector General Gregory Friedman: “We Are Deeply Concerned Because The Information Directly Related To The Objective Of Our Audit, To Determine Whether The Department Had Effectively Awarded And Managed Funding To ECOtality.” “‘We are deeply concerned because the information directly related to the objective of our audit, to determine whether the Department had effectively awarded and managed funding to Ecotality,’ Friedman said in the latest report.” (Josh Hicks, “Energy Dept. Failed To Report Concerns As Green-Tech Firm Was Heading For Bankruptcy,” Washington Post , 11/7/13)
ECOTALITY, WHICH RECEIVED OVER $100 MILLION IN STIMULUS FUNDS, FILED FOR BANKRUPTCY IN SEPTEMBER
In September 2013, ECOtality, Inc. Filed For Bankruptcy. “On September 16, 2013, ECOtality, Inc. (the ‘Company’) and its U.S. subsidiaries (collectively with the Company, the “Debtors”) each filed a voluntary petition for relief (the ‘Bankruptcy Filing’) under chapter 11 of title 11 of the United States Code (the ‘Bankruptcy Code’) in the United States Bankruptcy Court for the District of Arizona (the ‘Bankruptcy Court’). The Debtors have proposed to jointly administer their chapter 11 cases under the caption In re Electric Transportation Engineering Corporation, dba ECOtality North America , Case No. 2:13-bk-16126-RJH (the ‘Chapter 11 Case’).” (ECOtality, Inc., Form 8-K, Filed 9/16/13)
