	Summary of Science- Related Recovery Act Funding

Of the four agencies that received over $40 billion in funding for science- related activities under the Recovery Act, DOE received the largest  amount of funds. The LGP, which guarantees loans for energy projects that (1) use  either new or significantly improved technologies as compared with  commercial technologies already in use in the United States and (2)  avoid, reduce, or sequester emissions of air pollutants or man-made  greenhouse gases. The Weatherization Assistance Program, which enables low-income  families to reduce their utility bills by making long-term energy- efficiency improvements to their homes by, for example, installing  insulation, sealing leaks, and modernizing heating or air conditioning  equipment. Table 3 shows Recovery Act funding, obligations, and expenditures for  these DOE programs as of September 30, 2011. According to our analysis of DOE data, as of September 30, 2011, DOE’s  LGP had obligated about 78 percent of the remaining $2.5 billion in  Recovery Act funds, leaving $552 million unobligated. Consequently, we reported that DOE’s program management could  improve its ability to evaluate and implement the LGP by implementing the  following four recommendations: (1) develop relevant performance goals  that reflect the full range of policy goals and activities for the program, and  to the extent necessary, revise the performance measures to align with  these goals; (2) revise the process for issuing loan guarantees to clearly  establish what circumstances warrant disparate treatment of applicants; (3)  develop an administrative appeal process for applicants who believe their  applications were rejected in error and document the basis for conclusions  regarding appeals; and (4) develop a mechanism to systematically obtain  and address feedback from program applicants and, in so doing, ensure  that applicants’ anonymity can be maintained. we found that although weatherizing multifamily  In our May 2010 report, we made eight recommendations to DOE to  clarify its weatherization guidance and production targets. DOE has issued several guidance documents addressing multi-family  buildings that, among other things, provide guidance on conducting  energy audits on multi-family units. In  response to our recommendation, DOE issued guidance that clarified the  definition of income and strengthened income eligibility requirements. We expect to issue a report on the use of Recovery Act funds for the  Weatherization Assistance Program and the extent to which program  recipients are meeting Recovery Act and program goals, such as job  creation and energy and cost savings, as well as the status of DOE’s  response to our May 2010 recommendations by early 2012. Commerce

Of the over $1.4 billion Commerce received under the Recovery Act for  science-related projects and activities, Commerce reported that it had  obligated nearly all of it (98 percent) and spent $894 million (62 percent)  as of September 30, 2011. As part of our February 2010 report,Recovery Act grants from Commerce’s National Institute of Standards  and Technology had to delay or recast certain scheduled engineering or  construction-related activities to fully understand, assess, and comply  with the Recovery Act reporting and other requirements. we found that some recipients of  Of the $1 billion NASA received under the Recovery Act for science- related projects and activities, NASA reported that it had obligated nearly  $1 billion (100 percent) and spent $948 million (95 percent) as of  September 30, 2011. In a March 2009 report, we found that NASA large-scale projects had  experienced significant cost and schedule growth, but the agency had  undertaken an array of initiatives aimed at improving program  management, cost estimating, and contractor oversight. In our most  recent update of that report, we found that, although cost and schedule  growth remained an issue, Recovery Act funding enabled NASA to  mitigate the impact of cost increases being experienced on some projects  and to address problems being experienced by other projects. we reviewed NASA’s, as well as other  Of the $3 billion it received under the Recovery Act for projects and  activities, NSF reported that it had obligated nearly all of the $3 billion  (almost 100 percent) and spent $1.4 billion (46 percent) as of September  30, 2011. This  program, along with 24 new programs and 20 existing programs, was  funded to increase federal investment in basic scientific research and  science, technology, engineering, and mathematics (STEM) education in  the United States. We also  found that NSF was taking steps to evaluate the long-term effectiveness  of their funded projects. GAO-11-804. GAO-11-239SP. GAO-10-627. Recovery Act: States’ and Localities’ Uses of Funds and Actions Needed  to Address Implementation Challenges and Bolster Accountability. GAO-10-604. GAO-10-383. American Recovery and Reinvestment Act: GAO’s Role in Helping to  Ensure Accountability and Transparency for Science Funding. GAO-09-515T.
Why GAO Did This Study

The American Recovery and Reinvestment Act of 2009 (Recovery Act) is intended to preserve and create jobs and promote economic recovery, among other things. The Congressional Budget Office estimated in 2011 that the Recovery Act would cost $840 billion, including more than $40 billion in science-related activities at the Department of Energy (DOE), Department of Commerce, the National Aeronautics and Space Administration (NASA), and the National Science Foundation (NSF). These activities support fundamental research, demonstrate and deploy advanced energy technologies, purchase scientific instrumentation and equipment, and construct or modernize research facilities. The Recovery Act assigned GAO with a range of responsibilities, such as bimonthly reviews of how selected states and localities used funds, including for science-related activities. This statement updates the status of science-related Recovery Act funding for DOE, Commerce, NASA, and NSF and provides the status of prior recommendations from GAO's Recovery Act reports. This testimony is based on prior GAO work updated with agency data as of September 30, 2011.

What GAO Found

As of September 30, 2011, DOE, Commerce, NSF, and NASA had obligated about 98 percent of the more than $40 billion appropriated for science-related activities identified at those agencies. They had spent $22 billion, or 54 percent of appropriated funds. DOE received the majority of this funding, and the four agencies vary in the amount of Recovery Act funds they have obligated and spent for their programs, as well as the challenges they have faced in implementing the Recovery Act. For example: 1) Loan Guarantee Program for Innovative Technologies. As of September 30, 2011, DOE had obligated about 78 percent of the nearly $2.5 billion provided for this program, which among other things guarantees loans for projects using new or significantly improved technologies as compared with commercial technologies already in use in the United States and reported spending about 15 percent of those funds. In a July 2010 report (GAO-10-627), GAO made four recommendations for DOE to improve its evaluation and implementation of the program. DOE has begun to take steps to address our recommendations but has not fully addressed them, and GAO continues to believe DOE needs to make improvements to the program. 2) Weatherization Assistance Program. As of September 30, 2011, DOE had obligated the full $5 billion of Recovery Act funding provided for the Weatherization Assistance Program, which enables low-income families to reduce their utility bills by making long-term energy-efficiency improvements to their homes, and reported spending about 72 percent of those funds. In a May 2010 report (GAO-10-604), GAO made eight recommendations to DOE to clarify guidance and production targets. To date, DOE has implemented two of those recommendations: (1) it issued guidance on multi-family buildings and (2) clarified the definition of income and strengthened income eligibility requirements. 3) Commerce, NASA, and NSF. As of September 30, 2011, Commerce, NASA, and NSF each had obligated nearly all of their science-related Recovery Act funding. Commerce spent about 62 percent, NASA spent about 95 percent, and NSF spent about 46 percent of this funding. GAO has reported several times on the use of these funds and the challenges agencies faced. In a February 2010 report (GAO-10-383), GAO found that some recipients of Commerce's Recovery Act grants faced challenges complying with Recovery Act reporting and other federal requirements and had to delay or recast certain scheduled activities as a result. In a March 2009 report (GAO-09-306SP), GAO found that NASA's large-scale projects, including those that received Recovery Act funds, had experienced significant cost and schedule delays. In a March 2011 report, (GAO-11-239SP), GAO found that Recovery Act funds allowed NASA to reduce the impact of cost increases on some projects and to address problems being experienced by others. In GAO's October 2010 report (GAO-11-127R), it found that NSF's program to increase investment in science, technology, engineering, and mathematics education took steps to evaluate the long-term effectiveness of its projects and developed goals and metrics for that evaluation.