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RCED-84-103 1 (1984-09-05)

handle is hein.gao/gaobabeta0001 and id is 1 raw text is: 




BY THE COMPTROLLER GENERAL



Report To The Congress


OF THE UNITED STATES




The Steel Industry Compliance

Extension Act Brought About Some

Modernization And Unexpected Benefits


The Steel Industry Compliance Extension Act of 1981 was designed to
give relief to the ailing steel industry by allowing qualifying steel
companies to defer funding of new pollution control equipment for up to 3
years (to December 31, 1985) Under this legislation, the deferred funds
had to be used to modernize facilities so steel companies could remain
Iompetitive and save American jobs GAO reviewed the Environmental
Frotection Agency's (EPA's) implementation of the program to determine
s success and what might be learned for designing future programs.

en companies applied for the program, but only five participated,
ommitting a total of $49 million toward modernization Participation was
limited primarily by one provision in the law which required companies, at
the time of application approval, to be in compliance with their air
0 ollution control agreements with EPA or have insignificant violations
Also, because of poor economic conditions, steel companies were
reluctant to commit large amounts of capital for modernization purposes

The program also brought about unexpected benefits such as an
agreement by one company to share a highly cost-effective proprietary
emission control process with other companies free of charge

This report discusses the program's accomplishments, why it was not
more successful, and what the Congress should consider if it designs
imilar programs in the future





                   ~ sO                                           125069



                                                             GAO/RCED-84-103
                                                           SEPTEMBER 5, 1984

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