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B-202463 1 (1984-07-12)

handle is hein.gao/gaobadotm0001 and id is 1 raw text is: The Honorable Mik Synrar Chairman, Subcoiitt.e on Environment, Sand Natural Resources Comttee on Goernment Operations House of Represnttives Dear Mr. Chairman: By letter dated December 22, 1983, you asked the following questions concerning the Synthetic Fuels Corpration (Corporation): 1. Would the Corporation's proposed extension of $2.7 billion in financial assistance to Union Oil, coupled with Union Oil's existing $400 million con- tract, violate the Energy Security Act's limitation on financial assist- ance to any one synthetic fuel project? 2. What effect would the Supreme Court's holding in Immigration and Naturaliza- tion Service v. Chadho, U.S. 103 S. Ct.= Z791 ~3) (Ma~dha), Wa-ii on the Energy Security At rovision that one House of Congress could deny, by resolution, a Corporation request for additional time to develop the comprehensive strategy required by that Act? Based on our analysis of the Energy Security Act, we do not think the Corporation's proposed extension of $2.7 billion in financial assistance to Union Oil would violate the Act's limitation on financial assistance. We are inclined to agree with the Corporation that the Chadha decision has the effect of invalidating section 126(d)T2F7 the Energy Security Act, which provides for a one-Rouse resolution denyinq a Corpora- tion request for additional tie to develop the ciprehensive strategy* BESTDOUMNT AYmLABLE

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