XP Technology Retains Cause of Action in DOE Cronyism Suit

FOR IMMEDIATE RELEASE                                                                                                CONTACT:

NOVEMBER 23, 2012                                                                        Mary Beth Hutchins or Briton Bennett





WASHINGTON – Cause of Action, a government accountability organization, now represents San Francisco-based XP Technology in its November 14, 2012 lawsuit against the federal government concerning the U.S. Department of Energy’s denial of XP Technology’s loan guarantee application under the Advanced Technology Vehicles Manufacturing (AVTM) loan program.


XP Technology’s complaint, filed in the U.S. Court of Federal Claims, alleges that “corruption and negligence” pervaded DOE’s decision to award loan guarantees to Ford, Nissan, Tesla Motors, and Fisker Automotive for the development of electric vehicle technology.
“The Department of Energy has acted in an arbitrary and capricious manner at the expense of American small businesses that have sought to reduce our country’s dependence on foreign oil,” asserted Scott Douglas Redmond, XP’s lead investor.


About XP Technology:
In development for nearly a dozen years, with millions of dollars in resources already invested, XP Technology., is on a mission is to develop the safest, most affordable vehicle with the lowest total cost of operation (TCO) and the best power-to-weight ratio powered by alternative energy. The battery pack is capable of dramatically exceeding the range of any shipping electric vehicle with four passengers. However, it could reach 300 miles with the continuous and hot-swappable charge of an optional XP Auxiliary Power Unit.  For more information on XP Vehicles, please visit www.xpvehicles.com.


About Cause of Action:

Cause of Action is a nonprofit, nonpartisan organization that uses investigative, legal, and communications tools to educate the public on how government accountability and transparency protects taxpayer interests and economic opportunity. For more information, visit www.causeofaction.org.


All legal inquiries should be directed to Cause of Action’s Executive Director, Dan Epstein, at 202-400-2720. Media inquiries should be brought to the attention of Mary Beth Hutchins, mary.beth.hutchins@causeofaction.org or Briton Bennett, briton.bennett@causeofaction.org.



AP: Judge eyes challenge to Delaware Bloom Energy deal

Judge eyes challenge to Delaware Bloom Energy deal 

“”What we’re asking for is for the court to permit free competition,” said Amber Abassi, a lawyer for Cause of Action, a Washington D.C.-based legal advocacy group. The group is representing FuelCell Energy and Delmarva ratepayer John Nichols. Private attorneys hired by the state to represent Markell argued Wednesday that the suit should be dismissed because FuelCell has made no effort to conduct business in Delaware and thus cannot show that it has been harmed. David McBride, an attorney representing Markell, told Magistrate Judge Christopher Burke that it would be a “travesty” for the court to blow up the Bloom Energy deal with no assurance that FuelCell Energy would step in.”

Read the full story here.

Statement on Opposition for Motion to Dismiss, Nichols et al. v. Markell et al.

FOR IMMEDIATE RELEASE                                                                        CONTACT:

NOVEMBER 14, 2012                                                      Mary Beth Hutchins 202-499-4232


Regarding Oral Arguments for Motion to Dismiss in the matter of Nichols et al. v. Markell et al.

Cause of Action is committed to exposing the story of cronyism that has been going on between Bloom Energy and Jack Markell. We’re grateful we had the opportunity to speak out today, and inform the judge about the need for a fair trial. We believe that this issue of cronyism is one that, if left untreated, will continue to negatively affect the taxpayers of Delaware. We look forward to the judge’s decision to allow our case to proceed and for the chance to fight the corporate welfare that continues to harm both business and citizen alike.



Update: CoA to defend motion to dismiss in Fuel Cell Energy cronyism case

Over the past few months, Cause of Action has been working to expose the state of Delaware’s scheme to favor Bloom Energy, Inc. over its competitors. The cronyism that has been taking place reveals unconstitutional discrimination against other companies and because of this deal, the burden has been unfairly placed on Delaware taxpayers.

Today, Cause of Action’s Chief Counsel for Regulatory Affairs, Amber Abbasi, presented oral arguments in court arguing the need for a fair trial. We hope the judge will decide to allow us to defend the taxpayers of Delaware and fight the cronyism deal.

Read more about the case here. The complaint can be found here.

Greentech Media: Lawsuit Accuses Bloom Energy, Delaware of Cronyism

Read the full story here. GreenTech Media

“The lawsuit was filed by Cause of Action, which describes itself as a group dedicated to fighting waste, fraud and mismanagement in the federal government. The complaint (PDF) also names Fuel Cell Energy, a Danbury, Conn.-based fuel cell maker and competitor to Bloom Energy, as a plaintiff, Cause of Action spokeswoman Mary Beth Hutchins said in a Wednesday interview. It also names an individual, John Nichols, who is a customer of Delmarva Power & Light, the utility that’s working with Bloom.

“Our desire is that the court will issue a summary judgment” halting the Bloom deal from going forward, Hutchins said. “Our allegation is that the governor and the public service commission have essentially engaged in cronyism.”…Cause of Action’s lawsuit accuses the state of creating a “system of discriminatory eligibility requirements, subsidies, and energy-portfolio-standards multipliers that benefit Bloom,” when it rewrote its renewable portfolio standards act in late 2011. Cause of Action has also filed two Freedom of Information Act requests to examine public comments and economic studies submitted in support of the tariff…”

Cause of Action Sues Delaware Governor Markell And Public Service Commission To Stop Cronyism






Illegal Scheme Forces Ratepayers to Pick Up Tab for $133 Million Tariff-Subsidy


WASHINGTON – Government accountability group Cause of Action (CoA) filed suit today in federal court to challenge Delaware’s sweetheart deal with Bloom Energy, Inc. (Bloom). Governor Jack Markell and the members of the Delaware Public Service Commission are unconstitutionally discriminating against Bloom’s competitors and taxing a segment of Delaware residents to subsidize the crony company.

The suit is brought on behalf of individual plaintiff John Nichols, one of the Delaware ratepayers subject to a special tariff-subsidy created to pay for the deal, and a fuel cell manufacturer whose competitive place in the energy market has been thwarted by the state of Delaware’s scheme to prop up Bloom.

“Delaware has unconstitutionally undermined competitive markets to subsidize one favored company and forced a specific group of Delaware residents to pick up the tab,” said Amber Abbasi, CoA’s Chief Counsel for Regulatory Affairs. “Cause of Action is exposing this burden on taxpayers and businesses and is holding the Governor and the Public Service Commission accountable for violating the Commerce Clause and the rights of the people of Delaware.”

In late 2011, the Delaware Renewable Energy Portfolio Standards Act (REPSA) was modified solely to accommodate the state’s deal with Bloom. In return for Bloom’s promise to construct a manufacturing facility in Delaware, the state established a system of discriminatory eligibility requirements, subsidies, and energy-portfolio-standards multipliers that benefit Bloom. These requirements deny out-of-state companies equal competitive footing and increase costs for Delmarva ratepayers who might otherwise benefit from the competitive interstate market. According to a report by the Delaware Public Service Commission, the cost through tariffs to ratepayers will amount to $133 million.

“There’s no rational basis for forcing Nichols and other Delmarva ratepayers to fund Bloom Energy, while the rest of the state looks on.” stated Dan Epstein, Executive Director of CoA. “Governor Markell and the Public Service Commission are discriminating against competitive businesses in other states to prop up their cronies at Bloom, in direct violation of the U.S. Constitution, and they must be forced to answer for their actions.”

In addition to filing suit against the Governor andthe members of the Delaware Public Service Commission, Cause of Action also filed two Freedom of Information Act requests regarding public comments submitted during the formation of the Bloom tariff and economic impact studies that were submitted in support of the tariff.

The complaint can be found here.

About Cause of Action:

Cause of Action is a non-partisan, non-profit organization that uses public advocacy and legal reform tools to ensure greater transparency in government, protect taxpayer interests and promote economic freedom. For more information, visit www.causeofaction.org.