Securities and Exchange Commission-Retention of

B-265734 Feb 13, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights PEPCO will visit the customer's site and determine if their equipment qualifies for more energy efficient equipment. PEPCO will estimate the amount of rebate that the customer would receive based on a fixed dollar amount per item installed. It will make a one-time lump sum payment to the customer in one of three ways: check. Analysis We agree with the SEC that it is authorized to accept the financial incentive provided by the PEPCO Custom Rebate Program. We agree with the SEC that while using the same terminology the PEPCO rebates are not like the travel rebates and are not governed by the cases cited. 2. View Decision Matter of: Securities and Exchange Commission-Retention of Rebate Resulting from Participation in Energy Savings Program File: B-265734 Date: February 13, 1996 Unless otherwise authorized, an agency must deposit into the General Fund of the Treasury any funds it receives from sources outside the agency. 31 U.S.C. Sec. 3302 (1994). Section 625 of the Treasury, Postal Service, and General Government Appropriations Act, 1996, Pub. L. No. 104-52, provides the statutory authority for the Securities and Exchange Commission (SEC) to credit 50 percent of an energy efficiency rebate received from a local utility company in fiscal year 1996 to the accounts that fund its energy and water conservation activities. The credited amounts remain available until expended for statutorily prescribed purposes. The SEC should deposit the remaining 50 percent of the rebate into the Treasury at the end of fiscal year 1996. DECISION This responds to a request from the Acting Comptroller of the United States Securities and Exchange Commission (SEC) for an advance decision concerning the proper treatment of a rebate the SEC received from a local utility company. The SEC received the rebate under the company's Custom Rebate Program by installing energy efficient equipment. For the reasons discussed below, we conclude that the SEC may credit 50 percent of the rebate to the accounts that fund the energy and water conservation activities at SEC's facilities. The credited amount shall remain available until expended for additional specific energy efficiency or water conservation projects. The SEC should deposit the remaining 50 percent of the rebate to the General Fund of the Treasury at the end of fiscal year 1996. Background The SEC participated in the Potomac Electric Power Company's (PEPCO) Custom Rebate Program pursuant to its authority to enter utility incentive programs under section 152(f)(3), (4) of the Energy Policy Act of 1992, codified at 42 U.S.C. Sec. 8256(c). The PEPCO Custom Rebate Program offers its customers "rebates" based upon installation of qualified energy savings equipment. [1] According to PEPCO's program brochure, upon application to this program, PEPCO will visit the customer's site and determine if their equipment qualifies for more energy efficient equipment. If it does, PEPCO will estimate the amount of rebate that the customer would receive based on a fixed dollar amount per item installed. The customer then has 1 year to install the new equipment and submit a request for payment of the rebate. Once PEPCO verifies the actual installation, it will make a one-time lump sum payment to the customer in one of three ways: check, third party payment, or credit to a monthly utility bill. In fiscal year 1995, the SEC contracted with a private third party to retrofit about 4,950 existing lamps and fixtures with more energy efficient ones at an approximate cost of $247,000. The SEC submitted to PEPCO its request for payment and chose to received its rebate in the form of a credit on its monthly utility bill which it received in fiscal year 1996 in the amount of $118,000. Analysis We agree with the SEC that it is authorized to accept the financial incentive provided by the PEPCO Custom Rebate Program. The question becomes how to account for the "rebate" once received. As a general proposition, an agency must deposit into the General Fund of the Treasury any funds it receives from sources outside of the agency unless the receipt constitutes an authorized repayment or unless the agency has statutory authority to retain the funds for credit to its own appropriations. 31 U.S.C. Sec. 3302. Violation of this miscellaneous receipts statute constitutes an illegal "augmentation" of the agency's appropriation and funds must be returned to the Treasury so they can be appropriated as the Congress sees fit. 65 Comp.Gen. 600, 602 (1986); 62 Comp.Gen. 678, 679 (1983); 39 Comp.Gen. 647, 649 (1960). Section 152(f)(3), (4) of the Energy Policy Act of 1992, codified at 42 U.S.C. Sec.