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B-202463 1 (1981-03-24)

handle is hein.gao/gaobabjzt0001 and id is 1 raw text is: COMPTROLLER GENERAL OF , 4 WASHINGTON D.C. 20548 B-202463 March 24, 1981 The Honorable Don Fuqua Zo Chairman, Committee on Science - and Technology House of Representatives Dear Mr. Chairman: By letter dated March 4, 1981, you and Congressrr Larry Winn and Harp,.ton Fish submitted a joint request for our legal opinion concerning the~possible shifting of Department of Energy +4; synthetic fuels commercial demonstration projects to the Synthetic Fuels Corporation (Corporation), presumably after tfhe President determines that the Corpor- ation is established and fully operational. Specifically, you inquired whether there are legal impediments to the Corporation assuming the Government's obligations under the demonstration contracts to which Energy is now a party, the citations to the specific provisions of law constitut- ing impediments, if any, and the reasons why they may be impediments. In addition, you make specific reference to five projects, namely, the SRC-I, SRC-II, Memphis Gas, Conoco High-btu gas and ICGG High-btu gas projects. As you kno p cial assistance for synthetic fuels commerciaid two separate authorities: (1) the Federal Nonnuclear Energy Research and Development Act of 1974 (Nonnuc ear Act), as amended, 42 U.S.C. § 5901 et seq. (19 and Sup. III); and (2) the Defense Production Act Amendments of 1980, Pub. L. No. 96-294, Title I, Part A, approvedJune 30, 1980, 94 Stat. 67, by dele- gation from the President in Executive Order No. 12242, 45 Fed. Reg. 65175 (October 2, 1980). In addition these types of projects have been funded both from approoriation~sfrom the Lf-er-y Secrity Reserve established lb -ne Department of the Interior and Related Agencies Apropriations Act for Fiscal Year 1980, Pub. L. No. 96-126, approved November 27, 1979, 93 Stat. 954, 970, and from rgular appropriations to Energy from the General Fund of the Treasury. Because oT es; factors, we have-classified the synthetic fuels demonstration projects into three separate categories, which we treat separately, because the potential legal imodiments affect- ing the transfer of projects to the Corporation differ for the three ar- rangements. The categories are: (1) Projects receiving financial assistance from Energy pursuant to the Nonnuclear Act out of appropriations from the General Fund of the Treasury; (2) Projects receiving financial assistance from Energy pursuant to the Defense Production Act Amendments of 1980 out of appropriations from the Energy Security Reserve; and

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