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RCED-84-34 1 (1983-11-16)

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R EPOR-T BY THE U S,                  RELEASED



General Accounting Office







DOE's Defederalization Of The Laramie

And Grand Forks Energy Technology Centers




In April 1983, the Department of Energy defederalized its
government-owned and -operated energy technology cen-
tersat Laramie, Wyoming, and Grand Forks, North Dakota,
by transferring the centers to the Universities of Wyoming
and North Dakota, respectively. Cooperative agreements
between the universities and DOE provide continued fed-
eral funding for fossil fuel research for up to 3-1/2 years at
the centers. DOE also established project offices at each
site to provide in part an ongoing federal management
presence for the centers. GAO found that

   --continued federal funding of the centers is legal.
   However, the level of funding negates any short-
   range budget savings which may have been antic-
   ipated;

   --management of the centers is structured to ensure
   that both federal and university interests are consi-
   dered in planning for center operations;

   --reduction-in-force actions at the centers were carried
   out in accordance with Office of Personnel Manage-
   ment regulations. Most center employees were sub-
   sequentlv hired by the universities; and


--Public Law No. 97-394 specifically authorized the
transfer of the federal property at the centers to the
universities; other federal property laws do not apply.


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    GAO/RCED-84-34
NOVEMBER 16. 1983


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