Circumstances Surrounding the First Colony Peat-to-Methanol Project
Highlights
Pursuant to a congressional request, GAO examined certain issues relating to the First Colony peat-to-methanol project, including: (1) the authority of the Chairman of the U.S. Synthetic Fuels Corporation to sign a letter of intent favorably recommending to the Corporation's Board of Directors the award of loan and price guarantees to a particular firm; (2) whether the Davis-Bacon Act applies to the project; (3) concerns held by the staff of the Corporation; (4) concerns held by environmentalists and Corporation efforts to consider such concerns; (5) the Corporation's justification for providing price guarantees for the project; and (6) the ownership of the peat land on which the project will be situated and the arrangements for developing it.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| United States Synthetic Fuels Corporation | The Board of Directors of the Corporation should either formally authorize or prohibit the chairman's signing of any future letters of intent. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| United States Synthetic Fuels Corporation | The Board of Directors of the Corporation should assess the adequacy of Corporation information on two key questions regarding the peat-to-methanol project--replication potential, which is a statutory factor to be considered in awarding financial assistance to a project, and successful testing of the North Carolina peat in a pilot-scale facility, which is important to the economic viability of the project and a condition placed upon the project by the Board of Directors during the Corporation staff's review of the project--to assure itself that both have been fully resolved. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|