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B-207186 1 (1982-06-03)

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 I-2071863                                        June 3f 1982


 The Honorable Richard 4. Ottinger
 Chairman, Subcommi.tee or, Energy
    Conservation arid Power
Committee on Energy and Commerce
house of Representative8 J) ouYot, 1j4 ) i.tE-----.A

Dear Mr. Chairman:
      This ;esponds to your letter dated May 10, 1982, KYou
 expressed c¢oncvrri with our letter to you of May 15, 1982,Lihich
 analyzed thetlegality of execu\,ive impoundments of fund7appro-
 priated for th- Solar Energy and Energy Conservat ion' pakY) In
 our May 5 lqtter we addressed the issue of! the impounc, mef{.3
 legality it. terms of our December 31, 1981, reportlof'an earlier
 impoundment of Bank funds (deferral D82-184, proposed on Octo-
 bgr 29, 1901), We explained at some length our disigr,6emea'.aon
 the issue with 01B, and whyv we had concluded in 1ght 6f the
 fourth disclaiimer of the Impoundment Control Act that a with-
 holding of Bankfunds is unauthorized, You point out that we
 should have but did not explicitly atate that the sOithhlding
 ot the same funds pursuant to the President's rescissio pro-
 posal R82-22 was also unauthorized. An explicit statement to
 that effect is contained at page 7 df our report on the Presi-
dent's eighth and ninth special messages, copy enclosed, which
was issued the day following our lettcr to you.

     Youi also were troubled by a ntatement in our letterto
you that the issue of the legality of OMB's withholding Q'f the
Bank's funds now is academic,   Givenyour perciption tha, we
had not informed the Congress that the withholding was.illegal,
I can readily understand your apprehension that we might appear
to dismiss as merely academic the subject of youir concern and
the effectfthe illegal impoundment had on the Bank!s operaijion.
In point of fpct, our decision to attach considerable import-
ance to the fourth disclaimer is a controversial one which we
take quite seriously.   However, our belief in the cotrectness
of our interpretation of the law had no practical application
to the unauthorized withholding of funds from the Bank,    Indeed,
the period of 45 legislative days normally authorized for with-
holding funds proposed for rescission had expired and tbe funds




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