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EMD-82-81 1 (1982-05-03)

handle is hein.gao/gaobabdim0001 and id is 1 raw text is: 


   0UNITED STATES GENERAL ACCOUNTING OFFICE
                          .l                     the General
                          ,r 8 e;'ept on  the basis of specific  pproval
                  by tit.tia C e c Cong  s~onal Relations*

ENERGY AND MINERALS
    OIVISION                       May 3, 1982

    2-199278


    The Honorable Max BaucusN         ftHftRLAE
    United States Senate             118570

    Dear Senator Paucus:

         Subject: .)The Corps of Engineers Has Expended Fiscal Year
                  1982 Appropriations for Libby Dam Units 6, 7, and 8
                  (GAO/EMD-82-81)

         Your March 24, 1982, letter expressed concern that the U.S.
    Army Corps of Engineers' (Corps') fiscal year 1982 appropriations
    are possibly being spent in furtherance of units 6, 7, and 8 at
    Libby Dam, Montana. Specifically, you requested that we answer
    the following questions:

         1. Will transformer units being procured by the Corps in
             any way be in furtherance of units 6, 7, or 8?

         2. Has the Corps applied any of its fiscal year 1982 appro-
            priations to contracts for units 6, 7, or 8?

        We found that the Corps' acquisition of two custom-designed
    double transformers, I/ in effect, enhances the future economic
    viability of units 6, 7, and 8. Further, the Corps is spending
    about 70 percent of its fiscal year 1982 Libby Dam appropriated
    funds for generators and other equipment for these three units.

    SCOPE AND METHODOLOGY

         Our review was conducted in accordance with GAO's Standards
    for Audit of Governmental Agencies, Programs, Activities, and
    Functions. To determine the guidance the Congress gave with re-
    spect to expenditures for Libby units 6, 7, and 8, we reviewed
    the legislative history for the Omnibus Budget Reconciliation Act
    of 1981 (Public Law 97-35) and the Corps' appropriations for 1982.
    We discussed with Corps' officials, both in the field and head-
    quarters, their views on Congress' direction for units 6, 7,



    I/A double transformer housed in a single unit to handle power
      from two generating units.



                                  ~3~)/5~j~(005276)

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