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RCED-84-168 1 (1984-06-12)

handle is hein.gao/gaobabnkh0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 RESOURCES, COMMUNITY, RESTRICTED- Not to be released outside the Generuf AND ECONOMIC DEVELOPMENT Accounting Office except on the basis of specifc zpproval DIV ISION by the Office of Cengresslnal Relations. B-215070 June 12, 1984 RELEASED The Honorable Arlen Specter United States Senate 124510 Dear Senator Specter: Subject: Information on Coal Conversion Activities at Selected Powerplants (GAO/RCED-84-168) This report responds to your April 18, 1983, request, as modified in subsequent discussions with your office, that we provide information on the coal conversion program administered by the Economic Regulatory Administration (ERA), Department of Energy, under the Powerplant and Industrial Fuel Use Act of 1978 (Fuel Use Act). Specifically, information is provided on the conversion status of electric utility boilers included in the program since the passage of the Fuel Use Act in 1978 and on the future demand for and use of coal. Under the coal conversion program, ERA had authority to require industry to (1) convert boilers capable of burning coal from oil and natural gas to coal or other alternative fuels and (2) limit the use of oil and natural gas in existing and new boilers. This authority was removed when the coal conversion program was made voluntary by the Omnibus Budget Reconciliation Act enacted in August 1981. However, under the Fuel Use Act, ERA continues to assist companies that wish to convert volun- tarily. ERA provides this assistance by issuing orders which can be useful to companies in obtaining permission from the En- vironmental Protection Agency to burn coal in advance of achiev- ing full compliance with environmental rules and standards. In September 1981, we reported that ERA's coal conversion program activities were curtailed as part of federal efforts to reduce the cost of government operations.1 For example, in June 1981, the Congress reduced funding for ERA's coal conversion activities for fiscal year 1982 from the original 1Less Regulatory Effort Needed to Achieve Federal Coal Conversion Goals, EMD-81-71, Sept. 8, 1981. (308905)

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