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EMD-81-103 1 (1981-06-26)

handle is hein.gao/gaobabccc0001 and id is 1 raw text is: 



                  UNITED STATES GENERAL ACCOUNTING OFFICE
                          WASHINGTON, D.C. 20548

D4EURG AMD MUMALS
    IOMSION

    B-203558                                June 26, 1981


    The Honorable James B. Edwards


    The Secretary of Energy                          115696

    The Honorable John R. Block
    The Secretary of Agriculture

         Subject: [nergy Impacted Area Development Assistance
                   Program's Designation Criteria7(EMD-81-103)

         We have reviewed the designation criteria for the Energy
    Impacted Area Development Assistance Program which was
    established by section 601 of the Powerplant and Industrial
    Fuel Use Act of 1978 (P.L. 95-620, November 9, 1978). The
    Congress was very explicit in setting this program apart from
    other economic development progams and in directing that its
    funds only be used for energy-related impacts. Our analysis
    indicates, however, that both the broadness of the program's
    designation criteria and an error in them as published have
    resulted in areas qualifying for the program and receiving
    funds even though they might not be adversely affected by
    energy development.

         The future of this program is unclear. The President
    has recommended a rescission of $52 million of the program's
    $62 million fiscal year 1981 funds and no additional funds
    for the program in fiscal year 1982. Congress has adopted
    the President's recommendation for fiscal year 1981 by voting
    to rescind the $52 million (P.L. 97-12, June 5, 1981) and
    debate is still underway on fiscal year 1982 appropriations.
    Also, a bill (S. 1244) has been introduced in the Senate to
    expand and extend the program through 1985. While our review
    did not include an evaluation of the merits of the program
    and whether it should be continued, we believe the results
    of our review could be useful during both the current debate
    about the program and any future discussions about Federal
    programs to aid energy-impacted areas.



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