Loan Guarantees for Alternative Fuel Demonstration Facilities

EMD-79-35: Published: Apr 3, 1979. Publicly Released: Apr 3, 1979.

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Loan guarantees may be issued for demonstration facilities to produce alternative fuels or to convert municipal and industrial waste into synthetic fuels. The loan guarantee program of the Department of Energy is administered by three groups: the Urban Technology Branch, the Office of Industrial Energy Conservation, and the high-Btu gasification Resource Manager. Within 180 days after the passage of the Department of Energy Act of 1978 - Civilian Applications, the Department was to report on the opportunities to implement the program. The Department was unable to provide comprehensive plans at this time, however, because of the complexity of the regulations and because of internal coordination problems. A funding request was denied by the Office of Management and Budget.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The requirement for audit of recipients every 6 months is unnecessarily restrictive, since periodic audits are a part of ongoing GAO audit responsibilities. The audit provisions in the Federal Nonnuclear Energy Research and Development Act of 1974 should be eliminated by amending authorization legislation of the Department of Energy.

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