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Biden-favored EV bus maker Proterra goes bust and leaves a trail of broken and irreparable buses
Just The News ^ | Published: December 5, 2023 11:00pm | By Kevin Killough

Posted on 12/06/2023 5:54:44 AM PST by Red Badger

Proterra, which President Joe Biden once said was "making me look good," sold hundreds of electric buses to municipalities across North America. Every transit district Just The News spoke with, except one, has inoperable buses awaiting repairs.

Across the country, towns and cities of various sizes envisioned an electrified public transit system that could shuttle residents with vehicles that produced no carbon-filled exhaust.

Many of those communities purchased buses from Silicon Valley-based Proterra, which was able to produce 550 buses over its 19-year existence before it went bankrupt in August.

The company announced last month it had concluded auctions as part of its Chapter 11 bankruptcy process, and in the wake of its collapse public transit systems tell Just The News they have inoperable buses that can’t be repaired because the company is slow to supply parts to fix them.

Crony Capitalism

Early on, the company’s customers were noticing issues with the buses. The Massachusetts Bay Transportation Authority purchased five Proterra buses in 2019. The company promised ranges of 100 to 120 miles on a single charge, but the authority found they ran as little as 60 to 100 miles on a charge — even less in cold weather.

For a while, things looked pretty good for the company. Proterra’s initial public offering in January 2021 raised nearly $650 million, which was three times more than its revenues.

In April 2021, President Joe Biden took a virtual tour of a Proterra facility, using it to promote his infrastructure plan, which included approximately $6.5 billion in grants, according to the Wall Street Journal, to help replace diesel-powered school and transit buses with electric vehicles. “The fact is, you’re making me look good,” the president said.

The giveaways were in addition to $40,000 per vehicle in tax credits from the Inflation Reduction Act (IRA) for purchasing electric commercial vehicles. Proterra also benefited from tax credits for its battery manufacturing.

Jennifer Granholm, Biden’s energy secretary, had served on the company’s board. In May 2021, before assuming the lead at the Department of Energy, Granholm sold all her Proterra holdings, providing her with net capital gains of $1.6 million.

“It's the essence of crony capitalism,” David Blackmon, energy writer and analyst, told Just The News.

Early Adopter

As the bankruptcy proceedings wind through the process, many of the communities that own the buses, which cost about $1 million each, are struggling to keep them running.

The San Joaquin Regional Transit District (RTD), which includes Stockton, California, was an early adopter of electric buses, purchasing two from Proterra in 2013. Since then, the RTD bought 15 more. Six of the 17 total are currently inoperable and awaiting parts.

“RTD is thankful for its partnership with Proterra and its experience, including lessons learned as battery-electric technology evolves and continues to advance,” Merab Talamantes, RTD project controls manager, told Just The News, adding that two electric buses within the RTD fleet from another manufacturer are also broken down.

Based on communications with the company, she said, RTD expects the parts to arrive within 30 to 90 days.

Talamantes said the RTD has also had challenges with its bus charging infrastructure. The district operates four 500-kilowatt fast charging stations and five 60-kilowatt chargers. Proterra doesn’t have a valid California business license to complete work on the RTD chargers.

There are also problems with the chargers’ software, which is proprietary. Since RTD staff doesn’t have the tools or training to troubleshoot or repair them, it has to rely solely on Proterra to provide that service. This has left one charger inoperable for the last four months due to limited Proterra personal and software troubleshooting tools, Talemantes said.

Parts for the chargers are sometimes several months on backorder. To keep the chargers running, the district purchased used Proterra chargers and parts from another transit agency that ended its electric bus program.

“Although RTD has faced challenges with its Proterra fleet, as one of the first transit agencies to operate zero-emission buses in the county, it recognizes that its partnership with Proterra pushed BEB [battery-electric bus] technology to the advanced stage that it is in today,” Talamantes said.

Waiting For Parts

Proterra didn’t respond to requests for comment on this story.

The problems with the Proterra buses go back to well before the company’s bankruptcy. PBS/NPR affiliate WHYY reported in July 2021 that South Philadelphia transit system purchased some of the buses, which stopped running when their chassis cracked.

In August 2021, the Minnesota Reformer reported that Duluth’s planned transition to an all-electric bus fleet also ran into problems with cracked chassis. The buses were also failing to drive up steep hills. The Duluth Transit Agency and Proterra told the Reformer that the cracks were "a cosmetic problem."

More recently, the CBC reported that the city of Edmonton in Alberta, Canada, purchased 60 of the buses, and most of them aren’t running. More than half need replacement parts. Some of the buses have been down for over a year waiting for parts to come in.

The Southern Teton Area Rapid Transit (START) system, a joint operation between Jackson and Teton County, Wyoming, purchased eight of the buses. Cowboy State Daily reported in September that none of the buses were running at the time. Bruce Abel, START director, told Just The News that the system has managed to get two of those buses running.

“Proterra continues to work through their bankruptcy procedures. As part of that process, they have had some financing freed up to allow them to resume supplying parts,” Abel said. He said START continues to work with the company, and they believe they can get a third bus up and running this winter. “Beyond that we are waiting to see how the bankruptcy process proceeds,” Abel said.

Jacob Matsen, transit planning supervisor for the Mountain Metro Transit of Colorado Springs, Colorado, told Just The News that the district purchased four Proterra buses, and two of those aren’t running. The company sent a technician to work on the inoperable buses, and they’re trying to determine what parts are needed for the repairs.

The Albuquerque, New Mexico, transit district, ABQ RIDE, has five Proterra buses in its fleet, all of which are currently running. Megan Holcomb, spokesperson for ABQ RIDE, told Just The News that all five buses are still under warranty. The district runs a full maintenance shop, she said, and they haven’t had any problems obtaining parts for repairs. “ABQ RIDE maintains a relationship with our Proterra representative which will carry over when the company shifts to new management,” Holcomb said.

Unprecedented government funding

Blackmon said that Biden’s energy policies include a lot of funding for politically connected companies, and so he expects more boondoggles to come down the pipeline. “Some of the projects are very viable and are going to succeed, and they're gonna have great success. And then you're gonna have this whole population of other projects that don't exist for any other reason than to get the government money,” Blackmon said.

In a quarterly filing this summer, just before it announced its bankruptcy, Proterra remarked on how important government funding is to its business model.

in 2020 Proterra received a PPP loan of $10 million that was forgiven, but Proterra has enjoyed handouts from more than just the federal treasury. According to The California Globe, California has given Proterra at least $6 million in grants.

“We expect that the availability of this now unprecedented level of government funding for our customers, suppliers, and competitors to help fund purchases of commercial electric vehicles and battery systems will remain an important factor in our company’s growth prospects," Proterra stated in the filing.


TOPICS: Business/Economy; Government; Politics/Elections; US: California; US: Colorado; US: Massachusetts; US: New Mexico; US: Pennsylvania
KEYWORDS: act; albuquerque; authority; batteryelectricbus; coloradosprings; cronycapitalism; district; energysecretary; inflationreduction; jennifergranholm; massachusettsbay; mountainmetro; newmexico; proterra; regionaltransit; sanjoaquin; siliconvalley; southphiladelphia; transit; transitsystem; transportation
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To: Red Badger
Obama told us with great sincerity that Solyndra and a whole range of other now-bankrupt companies would be the "future." Yup. The future as Proterra joins the Solyndra dump. Let's revisit....
"House investigators said they have uncovered evidence that White House officials became personally involved in an Energy Department review of a hot-button $535 million loan guarantee to the now-failed California solar company Solyndra." More....

"How did this company, without maybe the best economic plan, all of a sudden get to the head of the line?" Upton told ABC News in an interview this week. "We want to know who made this decision ... and we're not going to stop until we get those answers."

White House officials have said in interviews that they did not intervene in the Solyndra deal or others benefiting companies backed by supporters of the president. Yet the administration, from Obama to the Department of Energy, has very publicly praised the loan guarantee.

In 2009, the Obama administration hailed the Solyndra loan as the first in a series of federal infusions for "green energy" firms that held the potential to clean up the environment and create jobs. But earlier this week, Solyndra abruptly closed its doors, announced it would file for bankruptcy and laid off more than 1,100 workers.

While Energy Department officials steadfastly vouched for Solyndra -- even after an earlier round of layoffs raised eyebrows -- other federal agencies and industry analysts for months questioned the viability of the company. Peter Lynch, a longtime solar industry analyst, told ABC News the company's fate should have been obvious from the start.

Investigators Probe White House Role in Massive Energy Loan ABC News, 2 September 2011

The scam and associated hoaxes is now over a decade old, continuing in a "rinse-and-repeat" manner by a corrupt government.
21 posted on 12/06/2023 6:44:18 AM PST by Worldtraveler once upon a time (Degrow government)
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To: Worldtraveler once upon a time

‘Green Energy’ is just a scam to get ‘Greenbacks’ to Democrats green with envy, and nothing more................


22 posted on 12/06/2023 6:48:29 AM PST by Red Badger (Homeless veterans camp in the streets while illegal aliens are put up in hotels.....................)
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To: GOPJ

BINGO!


23 posted on 12/06/2023 6:52:52 AM PST by Shady (The Force of Liberty must prevail for the sake of our Children and Grandchildren...)
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To: Red Badger

The parallels to “Atlas Shrugged” are amazing...


24 posted on 12/06/2023 7:01:59 AM PST by Victor (If an expert says it can't be done, get another expert." -David Ben-Gurion, the first Prime Minister)
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To: Shady

“BINGO!”

Asininity, and insanity on parade, and “We the People” have had enough of it.

January 6 2020 seems to be the Countries answer to those with BINGO concerns about asininity and insanity.

Shut your mouf and move on or else.


25 posted on 12/06/2023 7:05:40 AM PST by wita (Under oath since 1966 in defense of Life, Liberty and the pursuit of Happiness)
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To: Red Badger

They’ll be super handy homeless dwellings. Just line them up down the side of the highway.


26 posted on 12/06/2023 7:11:02 AM PST by lurk (u)
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To: Red Badger

Not ready for primetime.


27 posted on 12/06/2023 7:52:55 AM PST by mykroar ("It's Not the Nature of the Evidence; It's the Seriousness of the Charge." - El Rushbo)
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To: Red Badger

550 - and none will work within months. To make matters worse, even if you could get the “parts” to fix them, there is nobody to update the charging software as this article points out, but there are also no software updates to the battery management systems within the buses themselves.

What a massive waste of taxpayer money....


28 posted on 12/06/2023 8:05:12 AM PST by volunbeer (We are living 2nd Thessalonians)
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To: butlerweave

BECAUSE GM BOUGHT UP THE LINES & VEHICLES.


29 posted on 12/06/2023 8:10:13 AM PST by ridesthemiles
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To: volunbeer

Take the money and run.......................


30 posted on 12/06/2023 8:11:40 AM PST by Red Badger (Homeless veterans camp in the streets while illegal aliens are put up in hotels.....................)
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To: Red Badger

Let the class action lawsuits begin. Biden should be sued personally. If it’s ok for Trump, it’s ok for Biden.


31 posted on 12/06/2023 8:23:02 AM PST by DownInFlames (p)
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To: Red Badger
--- "‘Green Energy’ is just a scam to get ‘Greenbacks’ to Democrats green with envy, and nothing more................"

Just about as right as right as right can be!

32 posted on 12/06/2023 8:24:34 AM PST by Worldtraveler once upon a time (Degrow government)
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To: Red Badger

Just a little trial run. They are working hard to leave America busted and irreparable.


33 posted on 12/06/2023 8:46:02 AM PST by bgill
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To: eyeamok
If we just mandated that ALL Public Employee’s nationwide exclusively used Mass Public Transit using conveyances free from emitting Carbon, The problem will be solved.

LOL -

YES. They can show us the way...

34 posted on 12/06/2023 8:57:08 AM PST by GOPJ (President of the United States is a...controlled asset of the Chinese Communist Party.Sam Faddis CIA)
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To: Shady

Thanks Shady...


35 posted on 12/06/2023 8:58:02 AM PST by GOPJ (President of the United States is a...controlled asset of the Chinese Communist Party.Sam Faddis CIA)
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To: Red Badger

“RTD ... recognizes that its partnership with Proterra pushed BEB [battery-electric bus] technology to the advanced stage that it is in today,” Talamantes said.”

where said “advanced stage” hasn’t moved the needle on big-battery technology one iota ...


36 posted on 12/06/2023 12:16:17 PM PST by catnipman (A Vote For The Lesser Of Two Evils Still Counts As A Vote For Evil)
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To: catnipman

None of these EVs will ever be a long standing solution until they can make batteries that charge quickly, will travel 300+ miles between charges with a full load, will not catch on fire, and can be recharged thousands of times, and at every convenience store.........


37 posted on 12/06/2023 12:20:47 PM PST by Red Badger (Homeless veterans camp in the streets while illegal aliens are put up in hotels.....................)
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To: Red Badger

None of these EVs will ever be a long standing solution until they can make batteries that charge quickly, will travel 300+ miles between charges with a full load, will not catch on fire, and can be recharged thousands of times, and at every convenience store.........

and don’t weigh tons, and don’t catch on fires that can’t be put out, and the EVs don’t have to be totaled after fender benders because the batteries are unrepairable black boxes ...


38 posted on 12/06/2023 12:35:48 PM PST by catnipman (A Vote For The Lesser Of Two Evils Still Counts As A Vote For Evil)
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To: catnipman

...and the liability insurance isn’t thru the roof..............


39 posted on 12/06/2023 12:41:41 PM PST by Red Badger (Homeless veterans camp in the streets while illegal aliens are put up in hotels.....................)
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To: Red Badger

What will they do with all the lithium batteries?


40 posted on 12/07/2023 7:07:24 AM PST by This I Wonder32460 (Choose wisely because the consequences of actions create either destruction or benevolences.)
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