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DOCUMENT RESUME
005.51 - [A1051991]
H.R. 2788 and Federal Energy Administration Compliance
Activities. April 6, 1977. 12 pp. + enclosure (I pp.).
Testimony befoze the Evuse Committee on Interstate and Foreign
Commerce: Energy and Power Subcommittee; by Monte Canfield, Jr.,
Director, Energy and minerals Div.
Issue Area: Federal Procurement of Goods and Services (1900).
Contact: Energy and Minerals Div.
budget Function: General Government: Other General Government
(806).
organization Concerned: Federal Energy Administration.
Congressional Relevance: House Comuittee on Interstate and
Foreign Commerce: Energy and Power Subcommittee.
Authority: H.R. 2788 (95th Cong.); Federal Energy Administration
Act of 1974. H.R. 2819 (95th cong.).
House ReAlution 2788 would amend the Federal Energy
Administration (PEA) Act of 1974 to upgrade its contracting
process to prevent conflicts of interest on the part of the
contractors and establish an Office of Inspector General within
PEA. Persons entering into contracts for conducting research,
development, evaluation activities, or technical and management
support services would be required to furnish information on
possible orqanizational conflicts of interest. There is a need
for a strong internal audit and inspection capability directly
responsible to the agency head in all Federal agencies. FEA's
inability to effect timely resolution of uuresolved regulatory
issues has remained its most significant problem. Its system of
settling penalties by compromise has led to inequities due to a
lack of formal guidance in pe.alty assessment. YEA also has
problems in carrying out its compliaice ana enforcement program
because of tbh --mall nimber of auditors and investigators in
relation to the number of petroleum producers, refiners,
wholesalers, and retailers. There should be no criminal
investigation organization within FEA, though its personnel
should be trained to recognize potential criminal cases.
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