Synthetic Fuels: Comparative Analyses of Retaining and Selling the Great Plains Project
RCED-88-172
Published: Jun 10, 1988. Publicly Released: Jun 22, 1988.
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Highlights
In response to a congressional request, GAO performed cash-flow analyses to determine the: (1) value to the government of retaining the Great Plains coal gasification project; (2) estimated price to equal the project's retention value if the Department of Energy (DOE) sold the project; and (3) effect of federal tax provisions on the budget if DOE sold the project at prices ranging from $250 million to $700 million.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Energy | The Secretary of Energy should, in determining a fair price for the Great Plains project, consider the financial value of the project under continued federal ownership and the effect of production tax credits on the federal budget. |
Closed – Implemented
DOE compared both the value of retaining the project and the effect of production tax credits on the federal budget. The actual sale price exceeded the retention value and DOE got the new owner to waive the production tax credits.
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Topics
CoalCost effectiveness analysisFederal property managementFederal taxesFossil fuelsFuel salesGOCOSynthetic fuelsTax expendituresCoal gasification