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  • Title 17 Coalition Letter

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    james_valvo
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    The document urges support for an amendment to stop the Department of Energy's Loan Guarantee Program from issuing new loan guarantees in fiscal year 2013. It cites the Solyndra default which cost taxpayers $500 million and notes the program lacks protections for taxpayers. Audits found the program could not demonstrate how it resolved risks before approving guarantees. The amendment aims to prevent further losses from the troubled program which could become a "black hole" for billions in new defaults.

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    The document urges support for an amendment to stop the Department of Energy's Loan Guarantee Program from issuing new loan guarantees in fiscal year 2013. It cites the Solyndra default which cost taxpayers $500 million and notes the program lacks protections for taxpayers. Audits found the program could not demonstrate how it resolved risks before approving guarantees. The amendment aims to prevent further losses from the troubled program which could become a "black hole" for billions in new defaults.

    Copyright:

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    Download as PDF, TXT or read online from Scribd
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    5K views2 pages

    Title 17 Coalition Letter

    Uploaded by

    james_valvo
    The document urges support for an amendment to stop the Department of Energy's Loan Guarantee Program from issuing new loan guarantees in fiscal year 2013. It cites the Solyndra default which cost taxpayers $500 million and notes the program lacks protections for taxpayers. Audits found the program could not demonstrate how it resolved risks before approving guarantees. The amendment aims to prevent further losses from the troubled program which could become a "black hole" for billions in new defaults.

    Copyright:

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    STOPDOELOANGUARANTEEPROGRAMFROM MORETAXPAYERLOSSES SupporttheKucinichMcClintockAmendment June5,2012 DearRepresentative, TogetherweurgeyousupporttheamendmentofferedbyReps.Kucinich(DOH)andMcClintock(RCA) amendmenttostoptheDepartmentofEnergy(DOE)LoanGuaranteeProgramfromissuinganynew loanguaranteesinFY2013.CreatedinTitle17ofthe2005EnergyPolicyAct,theDOELoanGuarantee Programhasreceivedincreasedscrutinywiththerecentdefaultofaloanguaranteetothesolarstartup company,Solyndra.Taxpayersstandtolose$500milliononthefailedsolarprojectandbillionsmore couldbelostiftheprogramcontinuesinitscurrentform. TheGovernmentAccountabilityOffice(GAO),theDOEInspectorGeneral,andmanyothershavebeen criticaloftheexistingloanguaranteeeffort.

    rt.RecentlytheGAOfoundthatDOEcouldnotevenprovide comprehensiveinformationonthecurrentloanguaranteeapplicantsandcommitments,andarecent reviewcommissionedbytheWhiteHousefoundtheprogramwasnotproactivelyprotectingthe taxpayerorprovidingforareasonableprospectofrepayment. ArecentauditoftheLoanGuaranteeProgrambytheOfficeoftheInspectorGeneralfoundthatthe program,couldnotalwaysreadilydemonstratehowitresolvedormitigatedrelevantriskspriorto grantingloanguarantees.Thiscreatesseriousconcernfortaxpayersthatthefinancialtermsofthe loansarenotbeingjudiciouslydecided.Furthermore,loanguaranteesprovidedunderTitle17 guarantee100%ofaloanforupto80%oftheprojectcostleavingtaxpayerstoshoulderfartoomuch oftheprojectrisk.Addinginsulttoinjury,thelittleprotectiontaxpayersdidhaveintheeventofproject defaultwasunderminedin2009whenDOEweakenedtheoriginalstatute. WithhundredsofbillionsinbailoutsalreadyontheshouldersofUStaxpayers,thecountrycannotafford tocontinueaprogramthatcouldeasilybecomeablackholefortensofbillionsinnewdefaults.Weurge youtosupporttheKucinichMcClintockamendmenttostopnewloanguaranteesfromthetroubled DOELoanGuaranteeProgram! Sincerely, TaxpayersforCommonSenseAction NationalTaxpayersUnion

    AmericansforProsperity FriendsoftheEarth NonproliferationPolicyEducationCenter CompetitiveEnterpriseInstitute FreedomAction PhysiciansforSocialResponsibility

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