oversight

Department of Energy: Fiscal Year 1998 Obligations for Fossil Energy Programs

Published by the Government Accountability Office on 1999-09-14.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                                  GA 0
                              Accountability * Integrity * Reliability
           United States General Accounting Office                                                                          Resources, Community, and
           Washington, DC 20548                                                                                         Economic Development Division

                                B-283568

                                September 14, 1999

                                The Honorable John R. Kasich
                                Chairman, Committee on the Budget
                                House of Representatives

                                Subject: Department of Energy: Fiscal Year 1998 Obligations for Fossil Energy
                                         Programs

                                Dear Mr. Chairman:

                                The Department of Energy's (DOE) fiscal year 1998 appropriations provided about $362
                                million for the Fossil Energy Research and Development (R&D) Program and rescinded
                                about $101 million of the related Clean Coal Technology Demonstration Program.' Last year,
                                as we reported, DOE estimated that its obligations for the two programs during fiscal year
                                1998 would be $581.3 million.2 As agreed with your office, this report compares the actual
                                fiscal year 1998 obligations for the Fossil Energy R&D Program and the Clean Coal
                                Technology Demonstration Program with the estimated obligations that we previously
                                reported. 3

                                During fiscal year 1998, DOE's Fossil Energy R&D Program obligated about 1 percent less
                                money than had been estimated. The Clean Coal Technology Demonstration Program
                                obligated the same amount of money that DOE had estimated would be obligated. Within the
                                Fossil Energy R&D Program, the increase or decrease in obligations varied by program as
                                well as by phase of R&D. Enclosure I provides a program-by-program comparison of DOE's
                                actual fiscal year 1998 obligations with the Department's earlier estimates.

                                We obtained the data on the actual fiscal year 1998 obligations from the Department's Office
                   F            of Fossil Energy. We conducted our work in August and September 1999 in accordance with
PA 4.-Is                        generally accepted government auditing standards.
            4,     CZ

-a4 2M
     P4                         As agreed, unless you announce the contents of this letter earlier, we plan no further
  E d.                          distribution until 30 days from the date of the letter. At that time, we will send copies to




            a
            X                   'From 1985 through 1992, the Congress appropriated $2.7 billion for the Clean Coal Technology Demonstration Program. These
Co          *IZ    -4           funds have been reduced through rescissions and sequestrations, including the fiscal year 1998 rescission, to about $2.3 billion.

r!    .ยข    -;J~                'Department of Energy: Fossil Energv Programs (GAO/RCED-98-63, Jan. 30, 1998). This report provided actual obligations for
 -E- e1Z 8 ..                   fiscal years 1996 and 1997 and estimated obligationsas 6f December 1997, for fiscal year 1998. The estimated obligations were
CVao)    0,..,                  funds that DOE had committed or had planned to commit to spend during the fiscal year. DOE generally commits to spend
                                E-funds by awarding contracts and cooperative agreements or agreeing to fund specific activities that are included under such
Ad 44 o            ,=,          agreements.

g:p.~                           3'The actual fiscal year 1998 obligations are those reported by DOE as of the end of fiscal year 1998.

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      zXw          :GAOIRCED-99-284R                                                       Fiscal Year 1998 Obligations for Fossil Energy Programs
 EW          :     r     c;
B-283568

Bill Richardson, Secretary of Energy, and make copies available to others on request. Key
contributors to this review were Robin Nazzaro and Sandy Joseph. If you or your staff have
any questions about this report, please call me at (202) 512-3481.

Sincerely yours,




Jim Wells
Director, Energy, Resources,
  and Science Issues

Enclosure




2                   GAO/RCED-99-284R Fiscal Year 1998 Obligations for Fossil Energy Programs
Enclosure I


                      Comparison of DOE's Estimated and Actual Fiscal Year 1998
                                     Obligations in Fossil EnerIv Programs
                                                                     Obligations for R&D and Non-R&D
Table 1.1: Comparison of DOE's Estimated and Actual Fiscal Year 1998
Programs Within Two of DOE's Fossil Energy Programs

Dollars in millions
                                                                 Estimated                       Actual
                                                           fiscal     1998 yearfiscal             1998          Difference
Activity and program area
R&D
                                                                      $273.7                     $270.2                 -$3.5
   Fossil Energy R&D                                                                                                        0
                                                                       204.1                      204.1
  Clean Coal Technology Demonstration                                                                                    -3.5
                                                                       477.8                      474.3
Subtotal
Non-R&D                                                                                                                   -.7
                                                                         87.6                      86.9
   Fossil Energy R&D                                                                                                        0
                                                                         15.9                      15.9
   Clean Coal Technology Demonstration                                                                                    -.7
                                                                        103.5                     102.8
Subtotal                                                                                                                -$4.2
                                                                       $581.3                    $577.1
Total

Source: Developed by GAO using DOE's data.
                                                                                 for Non-R&D Programs
Table 1.2: Comparison of DOE's Estimated and Actual Fiscal Year 1998 Obligations
Within Two Energy Programs

 Dollars in millions
                                                                Estimated                      Actual
               ~Prog~ram                                 |fiscal ear1998              fiscal ear1998             Difference
 Fossil Energy R&D

                                                                           13.3                      13.1                  -.2
     Environmental restoration                                                                         2.8                 -.5
     Coal'                                                                  3.3
                                                                            2.2                        2.5                  .3
     Fuels Program                                                                                                         -.7
                                                                            2.7                        2.0
     Plant and capital equipment
                                                                         $87.6                      $86.9                  -.7
 Total
 Clean Coal Technology Demonstration
                                                                         $15.9                      $15.9                    0
    Program direction and management support
                                                                                                   to colleges and universities.
 'These funds are used for coal technology export, support of international activities, and grants
 Source: Developed by GAO using DOE's data.




                                                                                                   Programs
 3                                 GAO/RCED-99-284R Fiscal Year 1998 Obligations for Fossil Energy
Enclosure I

                                                                                            Energy R&D by
                                             Actual Fiscal Year 1998 Obligations for Fossil
Table 1.3: Comparison of DOE's Estimated and
Phases of R&D

Dollars in thousands
                                                                      led research              Deelo ment
                                 Basic research
                                                                           Chan     rom              Change rom
                                         Change from                           estimate      Actual      estimate
                                Actual       estimate            Actual                                       year
                                                                             fiscal year fiscal year   fiscal
                            fiscal year    fiscal year       fiscal year
 Program/subprogram/                                                                199199998                 1998
                          _        1998 199          8      1        998
 budget category
 Coal Program
 Advanced Clean Fuels Research                                                      $50      $0
                                     $417                $0      $3,362
    Coal re aration                                                                           1,092              0
                                                           5      3,967              40
    Direct iquefaction584                                          1,688           -599       1,762              0
    Indirect liquefaction             481                  0
                                                                   1,038             10         418              0
    Advanced research                   45                 0
    and environmental
    technologies                                                                             $4,523              $
                              ,    $1,527                $5     $10,055       _   -$499
                                                                                   _
           Subtotal
 Advanced Clean/Efficient    Power S  stems
                                                          $0    $10,676              $0      $4,747          $2,069
    Advanced pulverized              $328
    coal-fired ower pant[_                                                                       3,011       -1,187
                                       568               -88       1,134          -1,363
     Indirectfired cyle _|                                                          -825         7,617            0
                                     2,458                  0     11,322
     High-efficiency
     integrated gasification
     combined ccle                                                                  -820         5,791          -96
                                     1,072                  0     10,334
      High-efficiency
      pressurized fluidized
      bed                                                                                                       534
                                        556              -28        9,127            561         3,720
      Advanced research
      and environmental
      technologies                                                                                                0
                                                                         00          -391          0
      Kalina cycle                                               $42,593          -$2,838    $24,886         $1,320
  Subtotal                          $4,982            -$116
  Advanced Research and Technolo_         Develo ment
                                                                                                                 $0
                                    $2,988              -$85            $0
      Coal utilization
       science                                                                                                        0
                                      2,216               -96         245            -715                             0
       Technology crosscut                                                              0    0           0
                                      2,648             -484
       University coal
       research
                                                        -357         1,918            -61
       Mestoeals a3,170
       components                                                                                  $0so
                                                    -,022     022 $2,163            -$776
  Subtotal                         $11,022                                                                    $1,320
                                   $17,531          -$1,133       $54,811         -$4,113     $29,409
  Total,   Coal  Program




                                                                              for Fossil Energy Programs
   4                            GAO/RCED-99-284R Fiscal Year 1998 Obligations
Enclosure I



                                    Basic research                     Alied research                    Development
                                            Change from                        Change from                     Change from
                                                 estimate              Actual      estimate           Actual       estimate
                                   Actual                                                                        fiscal year
                               fiscal year     fiscal year         fiscal year   fiscal year      fiscal year
 Program/subprogram/                                                                   1998              1998           1998
 budget category                      1998            1998                1998
 Gas Program
 Natural Gas Research                                                                      $0         $5,984             $0
    Exploration and                $1,395               -$94           $6,492
    production                                                                            -302               372        -16
    Delivery and stor                  160                 61             217
                                                         238           23,476                 3           16,892          3
    Turbines                         3,390
                                                            -4          2,741             -698             2,875          0
    Utilization                        477
                                                          -44             593               -18            2,001          0
    Environmental and                  418
    regulatory
                                    $5,840              $157           $33,519       -$1,015         $28,124            -$13
 Subtotal
 Fuel Cells                                                                450___167
                                      $149                  $16           $450         -$167               $560           $0
    Advanced research
                                                             00              0             0                  0            0
    Molten carbonate
    systems                   _
                                                                             0               0              0              0
    Advanced cncets0                                                                      -357         29,950          1,387
     Fuel cell systems               1,426               -41             7,722
                                                        -$25            $8,172           -$524        $30,510         $1,387
 Subtotal                           $1,575
                                                        $132           $41,691         -$1,539        $58,634         $1,374
 Total, Gas Program                 $7,415

  Petroleum Program
  Oil Technology                                                                         -$870        $21,955         $2,800
      Exploration and                 $740              -$206           $9,940
      Production
      supporting research
                                                            -484                0        -3,115            1,073       -2,247
      Recovery field
      demonstrations                                                                                       3,102         114
                                        507                   -6         2,126             -358
      Exploration and
      production
      environmental
      research                                 _       __
                                                                                           -191             2,945
      Processing research                497                  23          1,891
      and downstream
      operations                                                                                                        $668
                                     $1,744                 -673        $13,957         -$4,534           $29,075
  Total, Petroleum
  Program
                                                                          1_313                                          -_45
  Other Fossil R&D                                        -$37
                                                                   _
                                                                         $1,431            -$32            $2,873        -$45
       Cooperative R&D               $1,422
                                     10,216              5,251                0               0                 0           0
       Mining R&D
                                    $11,638             $5,214           $1,431            -$32            $2,873        -$45
  Total, Other Fossil
   R&D
                                                        $3,540         $111,890        -$10,218       $119,991         $3,317
   Total Fossil Energy              $38,328
   R&D
                                                                              were spent on that phase.
 Note: Table does not include the demonstration phase of R&D because no funds
 Source: Developed by GAO using DOE's data.




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                                                                                           Energy Programs
  5                               GAO/RCED-99-284R Fiscal Year 1998 Obligations for Fossil