State and local government agencies  are not required to obtain an explosives license to use and store  explosives. Thefts Reported at State and Local Explosives Storage Facilities Are Few but May Be Underreported

According to ATF data, the number of reported state and local government  thefts is relatively small when compared with the total number of thefts  that have occurred nationwide. During a recent 3-year period (January  2002—February 2005), ATF received reports of 205 explosives thefts from  all sources nationwide. By comparison, during this same period, only 9  thefts were reported that involved state and local government storage  facilities—5 involving state and local law enforcement agencies, 3  involving state government entities (all universities), and 1 involving a  county highway department. Reported losses in these cases were  about 1,000 pounds of explosive materials, and in 10 of the incidents less  than 50 pounds of explosives was reported stolen or missing. Based on these  findings, the actual number of thefts occurring at state and local  government storage facilities nationwide could be more than the number  identified by ATF data. ATF Lacks Authority to Regulate and Oversee State and Local Explosives Storage Facilities Nationwide

There is no ATF oversight mechanism in place to ensure that state and  local government facilities comply with federal explosives regulations. However, state and local government entities are not required to  obtain a federal license to use and store explosives. In addition, ATF has  no specific statutory authority to conduct regulatory inspections at state  and local government storage facilities. ATF does not collect nationwide information on the number and location  of state and local government explosives storage facilities, nor does the  agency know the types and amounts of explosives being stored in these  facilities. Since data collection is a function of the licensing process and  state and local facilities are not required to be licensed, no systematic  information about these facilities is collected. With respect to private  sector licensees, ATF collects descriptive information concerning  explosive storage facilities as part of the licensing process. ATF also collects information about licensed private sector storage  facilities during mandatory inspections, through examination of explosives  inventory and sales records and verification that storage facilities meet the  standards of public safety and security as prescribed in the regulations. At each of the 14 state and local storage entities we visited, we observed  the types of security measures in place at their explosives storage  facilities. Electronic security. Thefts and compliance issues. However, one of these  incidents did not appear in ATF’s nationwide database of reported thefts  and missing explosives. However, these circumstances appeared to be related to  storage safety issues, rather than storage security. ATF has no authority to oversee state and local government storage  facilities as part of the federal licensing process, nor does it have specific  statutory authority to conduct regulatory inspections of these facilities.
Why GAO Did This Study

More than 5.5 billion pounds of explosives are used each year in the United States by private sector companies and government entities. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has authority to regulate explosives and to license privately owned explosives storage facilities. After the July 2004 theft of several hundred pounds of explosives from a local government storage facility, concerns arose about vulnerability to theft. This testimony provides information about (1) the extent of explosives thefts from state and local government facilities, (2) ATF's authority to regulate and oversee state and local government storage facilities, and (3) security measures in place at selected state and local government storage facilities. This information is based on a report GAO is releasing today on these issues.

What GAO Found

Judging from available ATF data, there have been few thefts of explosives from state and local government storage facilities. From January 2002 to February 2005, ATF received 9 reports of thefts or missing explosives from state and local facilities, compared with a total of 205 explosives thefts reported from all sources nationwide during this same period. During the course of the audit, GAO found evidence of 5 thefts from state and local government facilities, 1 of which did not appear in ATF's national database of thefts and missing explosives. Thus, the actual number of thefts occurring at state and local facilities could be higher than that identified by ATF data. ATF has no authority to oversee or inspect state and local government explosives storage facilities. State and local agencies are not required to obtain a license from ATF to use and store explosives, and only licensees--such as private sector explosives storage facilities--are subject to mandatory oversight. Thus, ATF has no means to ensure that state and local facilities comply with federal regulations. Further, ATF does not collect nationwide information on the number and location of state and local storage facilities, nor does the agency know the types and amounts of explosives being stored in these facilities. Because this data collection is a function of the licensing process and state and local facilities are not required to be licensed, no systematic information about these facilities is collected. By comparison, all licensed private sector facilities must submit a variety of information about their facilities--including location and security measures in place--to ATF during the licensing process. ATF also collects information about these facilities during mandatory inspections. At the 18 state and local government storage facilities GAO visited, a variety of security measures were in place, including locked gates, fencing, patrols, and in some cases electronic surveillance. All the facilities' officials told GAO that they conducted routine inventories. But most of the state and local government entities GAO visited were not required to be licensed or inspected by state or local regulatory agencies. GAO identified several instances of possible noncompliance with federal regulations, but these were related primarily to storage safety issues rather than security.