Murphy backed Westinghouse loans

WASHINGTON -- A Republican lawmaker who has criticized the Department of Energy's $529 million loan guarantee to an electric car company that is manufacturing vehicles overseas has championed U.S.-backed loans to a company headquartered in his home district that does business around the globe.

Rep. Tim Murphy, R-Pa., has called for the House Energy and Commerce's oversight subcommittee to investigate the DOE decision to award the loan to Fisker Automotive, which is manufacturing its first line of vehicles in Finland.

While DOE officials and Fisker maintain that no U.S. taxpayer money was used at the plant in Uusikaupunki, Finland, Murphy has cast doubt that the company could isolate its spending on domestic and international operations.

"I don't know how strongly they can isolate that (DOE funding) because … Fisker otherwise would have to invest their own private money into the R&D, the research and development and design and engineering for this vehicle that is going to be made in Finland," Murphy said in an interview Tuesday with Fox Business. In another interview with ABC News, he said that "ultimately, American taxpayer dollars went to a Finnish automaker to build high-end luxury automobiles for Hollywood."

Murphy, however, has backed financing for the Westinghouse Electric, which owns facilities in countries including Sweden, Belgium, France, Great Britain, Spain, Germany and the Ukraine and is headquartered in Murphy's district. In May, Murphy introduced legislation that would provide loan guarantees up to $450 million to Westinghouse for the construction of two new nuclear power plants in the United States.

Murphy was also among 114 lawmakers in 2005 that voted against an amendment, which passed the House, that would have blocked the U.S. Export-Import Bank from providing $5 billion in financing requested by Westinghouse to support the construction of four power plants in China. Yet, he also was a proponent of imposing "Buy America" policy amendment as part of President Obama's $800 billion stimulus act.

"I stand by my position that protection of U.S. tax dollars is not a bad policy," Murphy said to constituents last week. "Never should taxpayers foot the bill so private investors can make a buck in foreign lands."

Murphy has received more than $40,000 in contributions from Westinghouse employees and the company's political action committee, according to Federal Election Commission records.

Murphy did not respond to a request for comment. His legislative director, Brad Grantz, defended the congressman's legislation for the $450 million loan guarantee, noting the financing was going to build reactors in Georgia and South Carolina and not for "risky luxury automobiles being made in Finland."

"Congressman Murphy remains committed to holding the administration accountable and protecting the taxpayer's money," Grantz said.

So far, Fisker has spent about $193million of the loan money and about $336 million remains unspent, said Roger Ormisher, a spokesman for Fisker.

The money has been spent on the design and engineering work — being done from the company's headquarters in Anaheim, Calif. — for the first generation of luxury vehicles known as the Fisker Karma, which are to be manufactured at the Finland plant.

Ormisher added that part of the financing has been used to reconfigure a shuttered General Motors plant in Delaware where the electric car manufacturer plans on building its second line of vehicle, a sedan to be called the Fisker Nina.

The company has hired more than 600 engineers, designers and marketing officers that work in Anaheim. About 100 skilled workers were hired to reconfigure the Delaware plant. The Department of Energy says that plant will support about 2,500 jobs in Delaware.

"It's hard not to come to the conclusion that Rep. Murphy and Tea Party Republicans are attacking the on-shoring of American jobs," said Joshua Freed, a clean energy expert at the Democratic-aligned think tank Third Way. "They would rather see American businesses struggle and the job market stagnate than an economic rebound in 2012."

But the company has also shown signs that it is struggling. Production of the Nina has fallen behind and isn't expected to begin until mid-2013.

Prominent Republicans, including presidential contender Mitt Romney and former Alaska governor Sarah Palin, have also criticized the Obama administration for the Fisker loan.

Romney noted in the Orange County Register that some of top investors in the company are prominent Democrats, including a venture capital firm whose board of directors includes former vice president Al Gore.

But Evan Feinberg, a Republican who has announced that he will mount a primary challenge against Murphy, says Murphy has been the most inconsistent in his criticism of Fisker.

Feinberg, who opposes any government funding of energy projects, said that Murphy has long been promoting the expansion of government subsidies for energy companies. He also noted that Westinghouse is one of Murphy's top campaign contributors.

"If Tim Murphy had core convictions regarding the role of government, his positions might actually be consistent," said Feinberg, who opposes any taxpayer financing of energy firms. "Instead, his repeated hypocrisy further confirms a lack of principle. Considering how much Westinghouse contributes to Murphy's campaigns, it appears he'll support Big Government's intrusion into the energy sector — when the price is right."