The following is a list of the oversight results by the Office of Inspector General regarding The Department's programs, grants, and projects funded under the Recovery Act.
Use of American Recovery and Reinvestment Act of 2009 Funds on Solid Waste Project Activities at the Department of Energy's Hanford Site
The Department of Energy's (Department), Richland Operations Office (Richland), awarded a contract, effective October 1, 2008, to CH2M HILL Plateau Remediation Company (CHPRC) to remediate Hanford's Central Plateau. Part of the contract's scope included solid waste cleanup activities associated with retrieval, treatment, and disposal of low-level and transuranic (TRU) waste at the Hanford Site (Hanford).
The Department allocated $315 million in American Recovery and Reinvestment Act of 2009 (Recovery Act) funds to support Hanford's Solid Waste Project under the CHPRC contract. The Department's goals for Recovery Act funds were to accelerate cleanup, reduce life-cycle project costs, and provide jobs to stimulate the economy. Performance metrics were established to measure actual work accomplished, as compared to planned, and to determine if goals were met for Recovery Act funds obligated to the Solid Waste Project. Because of this significant increase in funding, we initiated this audit to determine if the Department effectively managed Hanford's Solid Waste Project Recovery Act activities.
The Department allocated $315 million in American Recovery and Reinvestment Act of 2009 (Recovery Act) funds to support Hanford's Solid Waste Project under the CHPRC contract. The Department's goals for Recovery Act funds were to accelerate cleanup, reduce life-cycle project costs, and provide jobs to stimulate the economy. Performance metrics were established to measure actual work accomplished, as compared to planned, and to determine if goals were met for Recovery Act funds obligated to the Solid Waste Project. Because of this significant increase in funding, we initiated this audit to determine if the Department effectively managed Hanford's Solid Waste Project Recovery Act activities.
Management Alert on Planned Actions Related to the National Energy Technology Laboratory's Simulation-Based Engineering User Center
The Department of Energy's National Energy Technology Laboratory (NETL) initiated plans to utilize $20 million of American Recovery and Reinvestment Act of 2009 funds to develop the Simulation-Based Engineering User Center (User Center) – part of the Carbon Capture Simulation Initiative program. According to project documentation, $3 million of the total cost will be dedicated to acquiring and installing a Performance Optimized Data Center (POD) at NETL's Morgantown, West Virginia, site. And, the remaining funds will be spent equipping and supporting the POD with a high performance computing system. In March 2011, NETL was given final approval for the project from the Department's Chief Information Officer.
The Department of Energy's American Recovery and Reinvestment Act – New JerseyState Energy Program
The Department of Energy's (Department) Office of Energy Efficiency and Renewable Energy (EERE) provides grants to states, territories and the District of Columbia (states) in support of their energy priorities through the State Energy Program (SEP). Based on population and energy consumption, and after a review of proposed projects, EERE allocated a total of $3.1 billion in American Recovery and Reinvestment Act of 2009 (Recovery Act) funds to the states. The grant awards were designed to help states achieve SEP Recovery Act objectives, including preserving and creating jobs; saving energy; increasing renewable energy sources; and reducing greenhouse gas emissions. EERE
program guidance held each state responsible for administering the SEP and for
implementing sound internal controls over the use of Recovery Act funds.
The State of New Jersey's (New Jersey) Board of Public Utilities (BPU) was assigned
responsibility for New Jersey's SEP. BPU received $73.6 million of SEP Recovery Act
funds – a 96-fold increase over New Jersey's Fiscal Year (FY) 2009 funding of $768,000. BPU planned to fund $20.6 million in State grants, $36 million in Memorandums of Understanding (MOU) with other State entities, about $16 million in energy rebates, and budgeted about $1 million in administrative costs. Per the Recovery Act, the Department was required to obligate the funds by September 30, 2010. The State was to have spent the funds by April 30, 2012, the date specified in the grant agreement. As part of the Office of Inspector General's strategy for reviewing the Department's implementation of the Recovery Act, we initiated this review to determine whether New Jersey had internal controls in place to ensure that the goals of the SEP and Recovery Act would be accomplished efficiently and effectively.
program guidance held each state responsible for administering the SEP and for
implementing sound internal controls over the use of Recovery Act funds.
The State of New Jersey's (New Jersey) Board of Public Utilities (BPU) was assigned
responsibility for New Jersey's SEP. BPU received $73.6 million of SEP Recovery Act
funds – a 96-fold increase over New Jersey's Fiscal Year (FY) 2009 funding of $768,000. BPU planned to fund $20.6 million in State grants, $36 million in Memorandums of Understanding (MOU) with other State entities, about $16 million in energy rebates, and budgeted about $1 million in administrative costs. Per the Recovery Act, the Department was required to obligate the funds by September 30, 2010. The State was to have spent the funds by April 30, 2012, the date specified in the grant agreement. As part of the Office of Inspector General's strategy for reviewing the Department's implementation of the Recovery Act, we initiated this review to determine whether New Jersey had internal controls in place to ensure that the goals of the SEP and Recovery Act would be accomplished efficiently and effectively.
Department's Management of Cloud Computing Services
Cloud computing enables convenient, on-demand access to shared computing resources that can be rapidly provided to users. According to the National Institute of Standards and Technology (NIST) and industry experts, benefits of the cloud computing model include the ability to more effectively manage Information Technology (IT) resources while reducing operating costs. For instance, it permits organizations to plan computer usage and add or subtract resources as necessary rather than invest in hardware and software that may be needed but not necessarily frequently used. In addition, the cloud computing model can increase employee mobility by allowing access to computing resources regardless of physical location. Furthermore, it allows IT personnel to be more flexible in the allocation of resources, allowing them to focus less on maintenance and more on innovation.
The Department of Energy's American Recovery and Reinvestment Act – Massachusetts State Energy Program
The Department of Energy's (Department) State Energy Program (SEP) provides grants to states,
territories, and the District of Columbia (states) to support their energy priorities. The SEP
allows the states to implement energy efficiency and renewable energy projects that meet their
unique energy needs and emphasizes the state's role as the administrator for the program. The
American Recovery and Reinvestment Act of 2009 (Recovery Act) significantly expanded the
SEP by providing an additional $3.1 billion for states' projects. The Commonwealth of
Massachusetts' Department of Energy Resources (Massachusetts) was allocated $54.9 million in
SEP funds under the Recovery Act – a more than 72-fold increase over its Fiscal Year 2008 SEP
grant of $753,000. As specified by the Department in its grant agreement and program guidance,
SEP funding was to be obligated by September 30, 2010, and spent by April 30, 2012.
territories, and the District of Columbia (states) to support their energy priorities. The SEP
allows the states to implement energy efficiency and renewable energy projects that meet their
unique energy needs and emphasizes the state's role as the administrator for the program. The
American Recovery and Reinvestment Act of 2009 (Recovery Act) significantly expanded the
SEP by providing an additional $3.1 billion for states' projects. The Commonwealth of
Massachusetts' Department of Energy Resources (Massachusetts) was allocated $54.9 million in
SEP funds under the Recovery Act – a more than 72-fold increase over its Fiscal Year 2008 SEP
grant of $753,000. As specified by the Department in its grant agreement and program guidance,
SEP funding was to be obligated by September 30, 2010, and spent by April 30, 2012.