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Defense Export Loan Guarantees. This pro-

Conservation program account funds

gram makes U.S.-guaranteed loans to more

applied R&D projects intended to discover

than three dozen nations to finance arms

new energy efficient technologies that will

sales. Recipient governments pay "exposure

enhance the profitability of U.S. businesses.

fees" to finance the program's operations,

Many of those projects involve direct part-

but the fees are not large enough to cover the

nerships with private industry. Energy con-

overall costs of the program, and the taxpay-

servation programs include the Industries of

er foots the bill for the difference.7 0

the Future program, selected technology

assistance programs, and transportation

Foreign  Military  Financing  Program.

Estimated to be the largest single subsidy pro-

technology programs such as alternative-

gram for U.S. weapons exporters, the Foreign

fueled vehicles.

Military Financing Program supports grants

Energy Information Administration. The

and loans to subsidize the sale of U.S. military

Energy Information Administration collects

equipment and services to more than two

and disseminates data on current energy

dozen countries, with the bulk of the money

sources, alternative energy sources, end uses,

going to Egypt and Israel. As a result of this

prices, supply and demand, and environmental

program and the Foreign Military Sales pro-

matters. In a free market for energy, Congress

gram, more than half of U.S. arms sales are

and the executive branch would have little use

financed by U.S. taxpayers, not by the foreign

for such information. Further, to the extent the

arms clients and weapons makers.71 The pri-

information provided by the EIA is deemed

vate lending markets could handle those

valuable by private industry, private firms

loans, just as they do loans for other products.

should bear the cost of attaining it. They should

Foreign Military Sales Program. This program

not be allowed to shift that cost to the taxpayer.

facilitates government-to-government sales of

In fact, much of the information provided by

arms; the Pentagon acts as a broker, negotiat-

the EIA is already being provided by the private

ing the terms of the deal, collecting funds, and

sector and by nonprofit industry associations.

disbursing them to the arms contractors. In

Energy Supply Research and Development. The

most other private commercial sales, the prod-

Energy Supply Research and Development pro-

uct supplier sells to the buyer without the U.S.

gram aims to develop new energy technologies

government as a broker. In addition, the

and improve on existing technologies. ESRD

"recoupment fees" assessed to the foreign gov-

activities include basic research at universities

ernments to underwrite this activity are usual-

and national laboratories and applied R&D

ly not enough to cover costs and are routinely

and demonstration ventures in partnership

waived altogether, thereby forcing the taxpay-

with private-sector firms. Research areas

More than half of

er to pick up the tab.7 2The federal government

include solar and renewable energy, nuclear

U.S. arms sales

should not directly serve as a broker for any

energy, and fusion energy. Such activities

are financed by

commercial transaction.

should be paid for entirely by private industry.

Fossil Energy Research and Development. The

U.S. taxpayers,

Department of Energy

Fossil Energy Research and Development

not by the foreign

Clean Coal Technology Program. The Clean

program is designed to expand the technolo-

arms clients and

Coal Technology Program funds joint pub-

gy base for private industry engaged in devel-

lic-private demonstration projects designed

oping new products and processes. The pro-

weapons makers.

to assist private industry in developing new

gram supports activities ranging from basic

commercial technologies that burn coal in a

research at universities and national labora-

more environmentally friendly way. This pro-

tories to applied R&D and cooperative R&D

gram gives taxpayer money to coal compa-

ventures with private-sector firms. FERD

nies that were already undertaking the

also supports company-specific technology

research on their own.7 3

development and demonstration activities.

Research areas include clean fuels; clean, effi-

Energy Conservation Programs. The Energy

20