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Energy Conservation: States' Use of Interest Earned on Oil Overcharge Funds

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Report Type Reports and Testimonies
Report Date Feb. 4, 1988
Report No. RCED-88-51
Subject
Summary:

In response to a congressional request, GAO reviewed the Department of Energy's (DOE) compliance with a GAO recommendation that it implement a policy requiring states to use the interest earned on oil overcharges for energy assistance programs.

GAO found that: (1) DOE failed to adequately ensure that states implemented its policy requiring them to use oil overcharge interest only for energy assistance programs; (2) eight states stated that DOE failed to inform them of its policy on the use of oil overcharge interest; (3) four of the eight states did not use the interest for energy assistance programs; (4) a DOE survey of states' use of oil overcharge interest showed that some were using the funds for purposes other than energy assistance; and (5) in California, officials deposited oil overcharge interest to the state's general fund because they were unaware of DOE requirements. GAO believes that other states may be improperly using oil overcharge interest.

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