Department of Energy--Title XVII Loan Guarantee Program
B-308715: Apr 20, 2007
Section 1702(b)(2) of the Energy Policy Act of 2005, Pub. L. No. 109-58, 119 Stat. 594, 1117-18 (Aug. 8, 2005), confers upon the Department of Energy independent authority to make loan guarantees, notwithstanding the requirements imposed by the Federal Credit Reform Act of 1990 (FCRA), Pub. L. No. 101-508, title XIII, subtitle B, sect. 13201, 104 Stat 1388, 1388-610 (Nov. 5, 1990), codified at 2 U.S.C. sect. 661c.
The Department of Energy violated 42 U.S.C. sect. 7278 by expending appropriated funds to implement a new loan guarantee program authorized by title XVII of the Energy Policy Act of 2005, Pub. L. No. 109-58, 119 Stat. 594, 1117-22 (Aug. 8, 2005). Section 7278 prohibits the Department from using funds made available to it under any Energy and Water Development Appropriations Act to "implement or finance" any loan guarantee program unless specific provision is made for the program in an appropriations act. At the time, there was no such provision for title XVII and the Department used funds appropriated to it for other purposes by two Energy and Water Development Appropriations Acts. These activities also violated the purpose statute, 31 U.S.C. sect. 1301(a), and the Antideficiency Act, 31 U.S.C. sect. 1341(a).