We understand that you will be considering legislation this week to create a new federal financing entity known as the Clean Energy Deployment Administration (CEDA). CEDA's goal is to provide loans, loan guarantees, and other forms of credit to various energy projects, but as envisioned the end result could easily be little more than a black hole for hundreds of billions of taxpayer losses on failed projects. In addition to funding high risk capital intensive projects with long-term financial liabilities, the size, scope and lack of accountability and transparency mechanisms make CEDA ripe for waste, fraud, and abuse. We urge you to oppose the creation of CEDA.

As proposed, CEDA would issue loan guarantees to high risk projects, while providing little oversight and taxpayer protections. Providing new federally backed financing in this economy makes little sense and places an enormous financial liability on the federal treasury and taxpayers.

CEDA creates a larger financing mechanism for energy technologies and absorbs the existing Department of Energy Title XVII Loan Guarantee Program which already has significant structural problems. The new entity will remain under DOE and distribute direct loans, loan guarantees, and other forms of credit for energy technologies ranging from renewable solar and efficiency to advanced nuclear and coal facilities. With a charge this expansive, it is easy to imagine enormous financial fallout for U.S. taxpayers.

With a $1.65 trillion deficit and a $14 trillion debt, we all agree that it would be reckless for Congress to allow this program to move forward. We urge you to oppose CEDA.

Sincerely,

Ryan Alexander, President
Taxpayers for Common Sense

Duane Parde, President
National Taxpayers Union

Myron Ebell, President
Freedom Action

William Yeatman, Assistant Director
Competitive Enterprise Institute

Henry Sokolski, Executive Director
Non-Proliferation Policy Education Center

Phil Kerpen, Vice President for Policy
Americans for Prosperity

Jeff Kueter, President
George Marshall Institute

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Taxpayers for Common Sense is an independent and nonpartisan voice for taxpayers, working to increase transparency and expose and eliminate wasteful and corrupt subsidies, earmarks, and corporate welfare. For more information, visit: www.taxpayer.net