Serious Clears the Air of Accusations by Fox, et al.

Serious Materials 1, Fox News 0

Serious Materials, the well-funded green building materials start-up has had some early business and PR successes but still faces a number of challenges:

  • Scaling-up production to tackle the enormous buildings materials market
  • Driving down costs to become a profitable player in the highly competitive buildings material market
  • Proving themselves as a volume manufacturer, green company, and creator of green jobs

On top of those challenges, Serious is now faced with dealing with conspiracy theorists from Minnesota and the Fox Network.


The Freedom Foundation of Minnesota (FFM) is making claims about an alleged conflict of interest between a high-ranking Obama Administration official and Serious Material's receipt of ARRA funds.   

ARRA is the American Recovery and Reinvestment Act.  The U.S. DOE's office of Energy Efficiency and Renewable Energy (EERE) received $16.8 billion in ARRA funds to promote green power and conservation programs including a tax credit for homeowners who install energy-efficient windows.  The Assistant Secretary of Energy, Cathy Zoi, is responsible for oversight in disbursing these stimulus funds.

The FFM notes that Ms. Zoi is married to Robin Roy, an executive at Serious Materials.  The allegation looks serious but it's not.   Before we straighten that out - who or what is the FFV?

The Freedom Foundation of Minnesota

According to their literature, "The Freedom Foundation of Minnesota...advocates the principles of individual freedom, personal responsibility, economic freedom, and limited government.  Founded in 2006, we hope to create a better and more vibrant future for every Minnesotan by helping shape sound public policy."  OK, everybody wants that.

In 2009 the foundation was a co-sponsor of the Heartland Institute's 2009 conference for climate change skeptics.   

And it would appear the FFV has Fox Business' John Stossel on their side. Here's a video from Stossel and the FFM

Serious Clears the Air - Note the Timeline

Kevin Surace, the CEO of Serious Materials, responded to these accusations in an email to your humble narrator.  He straightens out the timeline and pretty much sets the record straight.

"We have nothing to hide." said the CEO.  He continues in his email:

"Robin Roy had worked for us long before Cathy [Zoi] was offered that job. Her bi-partison hearings included full disclosure about Robin’s job. Fully transparent from day one, and all a matter of public record.

Though I have not visited Cathy, we have coordinated with the DOE for several years now, including my prior visits with Andy Karsner, John Misrock, and Paul Dickerson in the Bush administration. I personally knew and know them all. And should, as the DOE is involved in energy efficiency. This is why we often cite the DOE as important to all of us.

Most importantly, we opened the [Vandergrift] PA factory on March 16, 2009 and the President mentioned it March 27th, and Chicago was visited by the Vice President on April 27, 2009.

But Cathy was not confirmed by the Senate until June 19, 2009. [She was nominated in April].

So it seems that someone didn’t actually check the facts.

Lastly, we have not received one dime directly from DOE, or any other federal agency. However one of our plants was just listed as one of 183 that meet the requirement for a tax credit of $548K over the next 4 years for the purchase of certain equipment. Should we complete the purchase of that equipment, we will be eligible for that. We were one of the smallest credits on the list which included PPG, Schott and Saint Gobain."

[Note - the firms listed by Surace are glass and architectural glass firms which corrects yet another false Stossel accusation about there being no other window companies on the list].

Serious Materials claims to have the most energy efficient windows in the world - an R-11 certified by the NFRC.  Firms like Thermotech make similar claims.

Serious 1    Fox News 0

 

Resources

Guide to Efficient Windows

DOE EERE on purchasing energy efficient windows

20 Comments

  • gotmercury? 01/19/10 2:32 PM

    Is anyone doing Life Cycle Assessments with respect to greenhouse gas and toxics enmissions for the cradle to gate phase of building product manufacturing?  How can vinyl windows be good for the environment?  It is long overdue for Serious Materials and all building materials manufacturers to examine the emissions associated with the product manufacture!  Really get real.

    Reply
      • George W. Bush 01/29/10 3:39 PM

        If any of the birthers and right wing folks on this comment board got half as upset at the constitution-shredding antics of Bush and Cheney - the US would be in much better shape today.  At the heart of their vehement hate of this president is racism and intolerance.  If they were against crony capitalism they would have tried to impeach George W. Bush.

  • Steve 01/19/10 3:31 PM

    Classic right wing smear tactics!

    Reply
      • Wallace Barnes 01/19/10 8:28 PM

        Sometimes we all take things to extreme! No mater what we do we will contaminate something! you breathe in you take oxygen from the planet you breathe out you add co2! No matter what you manufacture there are going to be by products. Should we just let China build everything and stay home, collect welfare and complain about how they are ruining the planet? Give me a break!!!

  • gotmercury? 01/20/10 11:45 AM

    Stop manufacturing, no, but performing some math to find out which building materials are better for the environment, yes!  So far everyone is aglow with product performance, and that’s good, but what we ALSO need to know is how much we are messing things up when we make these high performance products.  And by the way, we NEED to do this to distinguish our (American made) products from the Chinese products in just such a way.  Our products should be high performance AND low in carbon and toxics emissions to manufacture. Unless this is done LEED will be a farce in short order.

    Reply
  • marchxv 01/20/10 5:35 PM

    [Note - the firms listed by Surace are glass and architectural glass firms which corrects yet another false Stossel accusation about there being no other window companies on the list].
    This editorial gloss from the article is just a bit mis-leading!  Some of these companies also supply glass to automobile manufacturers - does this qualify them as car-makers?  Yes, glass is the major component of windows, but not exclusively so!  There were no other Window companies on the list of ARRA funds recipients as reported by Stossel.

    Reply
  • GreenGeorge 01/20/10 5:57 PM

    To gotmercury?:  It appears you may have read “Cradle to Grave”.  If not, you’ll love it.  The points in your second missive are all good, even the capitals serve a purpose. But in your first missive you imply that Serious Materials has not done a CtoG analysis.  Do you know this to be the case?

    In any case, would you agree with the following statements?
    1) If a building material has a CtoG carbon and toxics footprint (and slave labor footprint etc) that is not perfect but is substantially better than the products it would displace, that would be a good thing.
    2) The greatest good is done by the new green building product that has the highest product of improvement in CtoG footprint and the number of units of the old product that are displaced.  For example, a green product that saves one pound of CO2 every time it displaces the sale of an old pre-green product, and sells a million units, is preferable to a green product that saves two pounds of CO2 per unit but is so expensive that it only sells a thousand units.

    Reply
  • David A 01/21/10 1:52 AM

    When a white house appointee is married to the guy who is getting millions in taxpayer dollars, then his pay is actually taxpayer money given to him by his wife and therefore as he is payed, his wife who has access to that money now in his bank account uses it to buy items for their personal use, oops looks like another Chicago taxpayer dollar shell game to me.
    The only building material good for the environment is ? How about wood. 100% recyclable.
    So everybody quit whining about the right, left, center, CO2 etc. and go plant a tree. Get out of your 3000 square foot house into your SUV, stop at AM/PM and get something cold that’s fizzing CO2 in a disposable container, buy a tree and PLANT THE DAMN THING.
    We can stop all greenhouse gas emissions right now but not one person has addressed how to get the gasses that are already in the atmosphere out, so until your plan is something besides give me your money, shut the hell up!

    Reply
  • smithncustom 01/21/10 3:44 AM

    climate change from c02 is a HOAX!!!!  Any kind of legislation in the name of the almighty “green” isn’t about anything but the green obama puts in his and his buddies pockets!!!

    Reply
  • DavidShea 01/21/10 6:59 AM

    Not so fast Mr. “humble narrator”.  You said, “So it seems that someone didn’t actually check the facts.”  Yes that’s true ... and that appears to be you!

    The “facts” you cite tell us nothing.  When did Ms. Zoi start pursuing the position?  When was she nominated or told she was to be the nominee?  When did she accept it?  Was her husband hired and their options issued at around the same time she learned she would be the nominee? 

    Her confirmation date means nothing.  The real question is, was she in a position to influence the special Serious Materials treatment prior to her confirmation?  As to Mr. Surace’s “straightening out” the timeline and “setting the record straight”, both his condescending attempt and your observation that he succeeded are laughable.

    You want facts?  Try these.  (1) Mr. Roy is a relatively recent hire as a VP with Serious Materials. (2) Roy was formerly Project Director & Fellow at the United States Congress Office of Technology Assessment where he advised the Congress on energy efficiency initiatives. (3) His wife, Ms. Zoi is an Obama appointee in charge of the government’s crash weatherization program funded by his Stimulus Bill, a program that will buy products from Serious Materials. (4) Zoi is responsible for the oversight and distribution of $16.8 Billion of Stimulus Funds of which Serious Materials has been awarded an initial sum of over $500,000 along with special tax breaks. (5) Ms Zoi’s nomination was announced by Obama March 27, 2009, interestingly, as Mr. Surace himself points out, the same day that Obama praised Serious Materials, and one month prior to Biden’s visit. (6) Zoi is the founding chief executive officer of the Alliance for Climate Protection, which was established and chaired by former Vice President Al Gore, another politician who has positioned himself to collect millions if not billions from us as a result of the Obama policies, his policies. (7) Roy and Zoi appear to own at least 120,000 Serious Materials stock options.  If this is true, Zoi’s role places her directly in a position to make sure that the market value of those options soar thus assuring that she and her husband personally profit to the tune of millions. 

    Moreover, Obama seems to have gone out of his way to give Serious Materials an overwhelming and unfair competitive advantage over other companies that have been in business much longer and appear to have equally effective products, by issuing a press release praising Serious Materials and allowing its CEO to participate in one of his White House news conferences.  This is in addition to Biden’s visit to a Serious Materials plant while similarly praising the companies for all the cameras to see.  Do he and Biden have Serious Materials stock too?

    You can demonize Fox all you want but this administration, the one that promised transparency and the elimination of corruption, has instead raised corruption to an art form.  There are more than enough potential ethics violations here to justify their reporting.  No, Fox is the only source for information that isn’t controlled by the White House or political correctness.  That’s why the Fox News ratings have soared while other news services have disgraced themselves and have seen their ratings decline.
     
    By the way, I got most of these facts off of the DEO and Serious Materials websites.

    Reply
      • Dom 01/23/10 1:14 PM

        Well researched and well said.  Fox isn’t the issue; the change we are not seeing is the issue.  More of the same, but shrouded in self-righteousness.

  • irloyal 01/21/10 12:28 PM

    I have worked with these guys. They are a bunch of greenwashers. Their products are poorly produced, and are no more green than competitors products whether it be their windows or wall coverings. The FTC has received several complaints about deceptive practices, and this last revalation shows how they have been able to weather the storm by cozying up to the Obama administration.

    Reply
      • Eric Wesoff 01/23/10 1:36 AM

        Please email me to discuss this (JavaScript must be enabled to view this email address)

  • tradcon 01/21/10 2:20 PM

    You Lie!  The administration new exactly who Cathy was, and is, prior to confirmation.  Can you say crony capitalism? How much of my tax dollars is greentech in line for to spread this propaganda?

    Bush was a corporatist too.  How’s that Hope and Change working for ya?

    Hey Steve - nice rebuttal, you deep thinker, you.

    Reply
  • gotmercury? 01/21/10 5:13 PM

    To GreenGeorge,

    In my first comment I simply asked if anyone is doing life cylce assessment analysis on building products. If Serious Materials is serious then they should probably not be in business using vinyl.  I am not sure if any building material manufacturers are doing LCAs to determine the impact of their manufacturing activities.  If they did, maybe it would show that making things here is better for the environment then making them in the coal belching and toxin spewing China.  I also have not seen building materials LCA inforamtion being considered in USGBC’s Leardership in Energy and Environmental Design criteria.  Shame on USGBC. 

    I agree with you that product price has to be right.  Still that’s what innovation is all about, companies must compete on both price and performance.  Its just that performance should be defined more broadly than just R values.

    Keep on.

    Reply
  • DrD 01/21/10 9:47 PM

    Pelosi has been filling the swamp not draining it.  Brown won in Mass mostly do to independents getting tired of corruption.  This is an open and shut case of conflict of interest.  The working wealthy poor are getting real tired of having the IRS seize our money only to have Obama share it with his buddies.  This crap has to stop.  I am tired of working 50+ hour weeks and having the government stealing an ever bigger chunk of my hard earned money.  Taking it to a logical conclusion means major civil unrest.  the political class better pay attention.  There are so few of them and so many of us.  The value of these politicians isn’t worth a plug nickel since the constitution provides for there replacement.  Not only should they be voted out of office, they should be made life time guest in one of our over crowded correctional facilities.

    Reply
  • Bill 01/22/10 11:40 AM

    Eric, I was willing to take your dissertation seriously until the ” Bachman (R-Insane)” comment. If you had been able to stay focused on your rebuttal of Fox’s reporting only, I might have been swayed to at least take what you had to say as plausible; however, you lost me completely with your attack. It just showed me that you have nothing to say and reinforced Fox’s veracity.

    Reply
      • Eric Wesoff 01/23/10 1:32 AM

        Bill,
        I believe you are correct.  The R-insane comment was uncalled for and I have removed it from the post.  That has no bearing on Fox’s veracity, however, in my opinion.
        Eric

  • Travis Bickle 01/25/10 3:56 PM

    If any of the birthers and right wing folks on this comment board got half as upset at the constitution-shredding antics of Bush and Cheney - the US would be in much better shape today.  At the heart of their vehement hate of this president is racism and intolerance.  If they were against crony capitalism they would have tried to impeach George W. Bush.

    Reply
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