California sues Mendota Bioenergy over $1.7 million in misused grant funds

In California, the State has sued Mendota Bioenergy in an attempt to get back $1.7 million in grant money it feels was misspent during a sugarbeet ethanol pilot project. The State Energy Resources Conservation and Development Commission had a contract with the company to reimburse up to $5 million towards the $11 million project but found out after disbursing $1.77 million for equipment from a third party found out the equipment was never delivered, only part was paid to the third party, and the company used the remaining funds for things not allowed by the grant contract. The State is suing for five counts of negligent and intentional concealment and misrepresentation and breach of contract.