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B-289209 1 (2002-05-31)

handle is hein.gao/gaocrptaocf0001 and id is 1 raw text is: 




          G AO
,Accountability * Integrity* Reliability
United States General Accounting Office
Washington, DC 20548


         B-289209


         May 31, 2002


         The Honorable Lane Evans
         Ranking Democratic Member
         Committee on Veterans' Affairs
         House of Representatives

         Subject: Use of Oil Spill Liability Trust Fund for Administrative Costs of Processing
                  Oil Pollution Act Claims

         Dear Mr. Evans:

         This responds to your letter of October 9, 2001, written jointly with The Honorable
         Corrine Brown, concerning the Coast Guard's use of the Oil Spill Liability Trust Fund
         (the Trust Fund), as created by the Oil Pollution Act (the Act), Pub. L. No. 101-380,
         104 Stat. 484 (1990). The Act established a no-year appropriation for payment from
         the Trust Fund of uncompensated claims for damages and removal costs arising from
         oil spills. 33 U.S.C. §§ 2712(a)(4), 2752(b). It also authorized annual appropriations,
         not to exceed $25 million per year, to be derived from the Trust Fund, for payment of
         the Coast Guard's operating expenses under the Act. 33 U.S.C. §§ 2712(a)(5)(A),
         2752(a).

         Congress appropriates funds annually out of the Trust Fund for use as part of the
         Coast Guard operating expenses appropriation. For fiscal year 2002, for example, the
         total operating expense appropriation is about $3.4 billion for the necessary
         expenses for the operation and maintenance of the Coast Guard, of which $24.9
         million came from the Trust Fund. Pub. L. No. 107-87, 115 Stat. 833, 835 (2001).
         Nevertheless, since 1998, the Coast Guard has used the Act's no-year appropriation to
         pay not only the uncompensated claims, but also its costs of processing those claims,
         including the salaries of adjudicators and the other administrative expenses
         associated with payment of the claims. You asked for our opinion on whether the no-
         year appropriation is available for these purposes.

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