The United States Synthetic Fuels Corporation's Project Selection Guidelines Need Clarification.
Abstract
The SFC's (Synthetic Fuel Corporation) project selection guidelines provide information on the process for evaluating proposals, the criteria to be used, and their relationship to the requirements of the Energy Security Act. It appears that the guidelines are consistent with the requirements of the Energy Security Act. However, in reviewing the public comments, we found that probably the principal criticism is that they are vague. There is concern that industry sponsors may not have enough guidance to adequately prepare their proposals. Also, the Environmental Protection Agency and environmental groups would like the environmental groups would like the environmental criteria to be clearer and more complete. Our comments similarly concern areas in need of clarification. We found that the SFC needs to clarify the project selection process by describing in greater detail how projects will be reviewed and by establishing a target date for beginning the review of 'mature' projects. The SFC also needs to clarify how economic assumptions, such as inflation rates, interest rates, and the price of oil and gas, will be standardized so that the financial viability of a project can be assessed and compared with other projects. Furthermore, to ensure the integrity of the project selection process, the SFC needs to maintain detailed documentation at each level of the process.
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 05, 1981
- Accession Number
- ADA107184
Entities
Organizations
- United States Government Accountability Office