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B-178205.80 1 (1979-10-02)

handle is hein.gao/gaobabjgq0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, D.C. 2z.48 B-178205.80 The Hlonorable John D. Dingell Chairman, Subcommittee on Energy and Power Committee on Interstate iind Foreign Commerce - Ilouse of Representatives Dear Mr. Chairman: In connection with our reoort Fossil Energy Research, Develooment, and Demon;tration: Oonorturities for Change, EMD-78-57, you ques- tioned theLDepartment of Energy's k _ industry cost participation policies PuLrsuant to your request, we have reviewed the industry Parti- cipation provisions of the laws anolicable to DOE, with narticular concern for provisions requirin cost sharing or mandating the size of demonstra- tion plants. In so doin- we restricted our selves to the laws governing nonnuclear energy technologies, the area of your primary concern. As you know the laws and reauirements aoolicable to nuclear energy are distinct and separate, as is explicitly reconized by subsection 3(b)(2) of the Fed- eral Nonnuclear Energy !lesearch and Develooment Act of 1974, 42 U.S.C. § 5902(b)(2) (1976), and subsection 107(a) of the :Ener-y Reorrfanization Act of 1974, as amended, 4Z U.S.C. § 5317(a) (1976). In addition, we have reviewed the most pertinent of DOE's regulations and proposed regulations with respect to cost -participation. As a general overall conclusion, we found that DOE has substantial discretion over the amount and circumstanccs in which industry cost oar- ticination will be recuired, if any. in narticular, we are not aware of any statutory nrovision that mandates industry cost sharing in all nhases of a demonstration nroject, nor are wo aware of any statutory pro'ision that mandates the size of demonstration !)ants. ITowever, the law does recuir-e, with respect to the selection of demonstration olants, that the dec-ree of financial suouort that may 1-e orovided by non-i'ederal entities be taIten into con.-.icration. in addition, v/hen the estirnaed total costs of a demonstration project e.ceed a certain level, in some circumstances specific con-ressional authoriz:ation -may be required for the oarticular project. For rrojects which come within these nrovisinns, Cowr)ress has an opportunity to evaluate both the oarticular ftnding arrangements and the plant size on an individual demonstration project basis before a project is undertaken. 7 - ,$ i 15-7r 088577

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