Status Report on Budget Authority That Was Proposed for Rescission

OGC-82-1: Published: Oct 28, 1981. Publicly Released: Oct 28, 1981.

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GAO reviewed the status of the budget authority that was proposed for rescission, but for which Congress failed to pass a rescission bill as defined in the Impoundment Control Act.

In its review, GAO found that the funds for the SRC-II coal liquefaction project, which were earmarked for rescission in the President's twelfth special message, have been apportioned to the Department of Energy's (DOE) Energy Programs for Fossil Energy Construction. However, the SRC-II project has been terminated, and there are no other projects now authorized in the fossil energy construction account which could use the funds. As a result, while the budget authority has been apportioned to DOE in compliance with the Impoundment Control Act, DOE will not obligate these funds unless and until a new project is developed by the agency and is authorized by Congress. Presently, no efforts are being undertaken to develop a new project because the President has requested that the funds be transferred to the agency's Energy Supply Research and Development account.

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