Closed Tennessee Solar Plant Still Receiving Government Checks

Hemlock laid off employees in Clarksville and Michigan in January, blaming global pressures for their product – polysilicon – which is a key component in solar panels. Credit: Hemlock

Hemlock Semiconductor of Clarksville laid off all of its nearly 300 employees months ago. But the company is still receiving regular payments from the state of Tennessee, including checks totaling nearly $720,000 just this month.

The Department of Finance is making good on $95 million of promised incentives, having paid $92 million so far, according to a state spokesperson.

“This is something that the current administration sort of inherited,” says Finance Commissioner Mark Emkes. “I think we do have to be very careful and very thoughtful going forward on things like this.”

Former Governor Phil Bredesen – a Democrat – made the deal to bring the solar industry player to Tennessee in 2008. Since then, competition from China has dragged down the price for polysilicon, which is the key component in solar panels manufactured by Hemlock.

Now in the minority, Democrats like Lowe Finney pushed a bill this year that would give the state a way to get back some money if companies don’t deliver on their part of the deal.

“Different legislators have talked about oversight for a number of years,” Sen. Finney (D-Jackson) said. “But it’s a matter of timing.”

The law was signed by Gov. Bill Haslam late last week. It passed unanimously, but that may be because it could be viewed as watered-down. The proposal still doesn’t mandate clawback provisions in future economic incentive deals.

“We don’t want to do anything to hamper our commissioner and our governor in their ability to bring in companies,” Finney said.

Economic and Community Development commissioner Bill Hagerty says the department has been using “clawback language” since last year. He says in a written statement the new law, “makes it clear ECD has the ability to enforce accountability and performance from our grant recipients.”