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B-166506 1 (1973-03-08)

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                               -Not to be released outs!
                            Office except on the basis a
                 by te Ofice of Legislatye Liaison, a record o whichh; ke
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                   COMPTROLLER GENERAL OF THE UNITED STATES
                                         20548

RELEASED

   B- 166506MA                                          8  1 3



   The Honorable Edmund S. Muskie
   Chairman, Subcommittee on Air
      and Water Pollution
    Committee on Public Works
  VUnited States Senate

    Dear Mr. Chairman:

         In accordance with your request of November 27, 1972, we have
    examined into (1) the delays incurred by Florida  9aii      -rant
    funds from theEn~vronment Prot     ,n Agency (EPA) for constructing
    waste treatment facilities and (2) EPA's method of obligating fiscal
    year 1972 construction grant funds.

         EPA allocated fiscal year 1972 construction grant funds to the
    States in accordance with the formula prescribed in the Federal Water
    Pollution Control Act, as amended (33 U.SoC. 1151).

        As of November 1972, EPA had obligated about 50 percent of the
    construction grant funds appropriated for fiscal year 1972o At that
    time EPA had obligated only 11 percent of the Federal funds allocated
    to Florida. (Appropriations for construction grants are available
    until expended.) As of December 31, 1972, however, EPA had obligated
    all of the grant funds allocated to Florida and more than 99 percent
    of the total fiscal year 1972 construction grant funds. (See enc. III.)

         Most of Florida's grant funds were not obligated until December
    1972 primarily because, until then, the grant applications submitted
    by the State to EPA did not contain all the data EPA required pursuant
    to Federal laws and regulations. Representatives of several other
    States told us that there was not an unreasonable delay in obligating
    funds.

         We found no indication that EPA withheld or delayed obligating
    appropriated funds as part of an overall effort to control the expend-
    iture of Federal funds. EPA obligated grant funds in accordance with
    its prescribed policies and procedures.

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