Full Title: Audit Report on “The Office of Fossil Energy’s Oversight of the Texas Clean Energy Project Under the Clean Coal Power Initiative”
Author(s): Office of the Inspector General
Publisher(s): U.S. Department of Energy
Publication Date: February 1, 2018
Full Text: Download Resource
Description (excerpt):
The Department of Energy’s Clean Coal Power Initiative (Initiative) is a partnership with
industry to demonstrate advanced coal-based technologies. The Initiative’s goal is to accelerate
commercial deployment of promising technologies to ensure the nation has clean, reliable, and
affordable electricity. The Department’s Office of Fossil Energy (Fossil Energy), through its
National Energy Technology Laboratory, is charged with the implementation of the Initiative. In
January 2010, Fossil Energy awarded the Texas Clean Energy Project (Project) a $1.7 billion
cooperative agreement under the Initiative. The Department’s original share of the Project’s
total cost was $350 million, which was later increased by $100 million. The awardee, Summit
Texas Clean Energy LLC (Summit), was to provide the remaining costs.
In our special report on The Department of Energy’s Continued Support of the Texas Clean
Energy Project Under the Clean Coal Power Initiative (OIG-SR-16-02, April 2016), we noted
that significant project delays had occurred due to the Project’s inability to secure private
financing. In addition, we noted that the Department had taken actions that increased its
financial risk without assurances that the Project would succeed. Subsequent to our review, the
Department terminated the cooperative agreement with Summit due to its inability to secure
funding. The purpose of this follow on report was to determine whether Fossil Energy
effectively and efficiently managed financial aspects of the Project under the Initiative.