March 17, 2014

DOE’S INTERIM SUPPORT FOR USEC CONCERNS CONGRESS

By ExchangeMonitor

The Department of Energy’s $44 million in short-term support for a USEC centrifuge plant R&D program without Congressional backing has rankled Senate Appropriations Energy and Water Chair Dianne Feinstein (D-Calif.). Last month, DOE announced that it would assume $44 million in liability for depleted uranium tails from USEC, and in return the company would provide uranium enrichment services to DOE. In a recent letter to DOE Secretary Steven Chu, Feinstein noted that Congress did not approve funding for the USEC program as requested by DOE, and said she had already spoken with Chu about the possibility of transferring USEC liability in late 2011. “During our meeting, you said you would not take a similar action unless Congress indicated support for the full RD&D effort. However, you recently decided to assume $44 million in liability for uranium tails without congressional support or backing. This action raises significant concerns,” Feinstein wrote in the Jan. 23 letter. She added, “It appears the Department is not imposing conditions on this tails transfer that would protect the U.S. taxpayer, such as requiring USEC to bring in new leadership to improve the ACP’s management or securing intellectual property rights.” Feinstein has asked Chu to explain the benefits of the tails transfer and precautions taken to protect taxpayers.

And last week, a group of 13 House lawmakers from uranium producing states also questioned DOE on its deal with USEC. In a Feb. 1 letter, the group asked the Department about the quantity of depleted uranium transferred by USEC, the quantity and value of what will be enriched by USEC, and whether any additional excess uranium will enter commercial market. The lawmakers, who have steadily opposed the potential re-enrichment of depleted uranium hexafluoride tails, also asked about DOE’s plans in that area.. That raised “significant questions regarding your Department’s intentions regarding the management of these tails. We respectfully request a detailed explanation of DOE’s actions and future plans related to these developments,” the lawmakers wrote in the letter. The letter adds, “We urge you to keep in mind how paying for the cost of re-enrichment with UF6 out of DOE’s excess inventories will impact the domestic uranium mining and conversion industries. These two segments of the domestic industry support a great many jobs in our districts and other areas.” The letter was signed by 13 Congressmen: Reps. Cynthia Lummis (R-Wy.), Michael Burgess (R-Texas), Joe Barton (R-Texas), John Shimkus (R-Ill.), Stevan Pearce (R-N.M.), Ruben Hinojosa (D-Texas), Adrian Smith (R-Neb.), Trent Franks (R-Ariz.), Henry Cuellar (D-Texas), Paul Gosar (R-Ariz.), Jim Matheson (D-Utah), Mike Coffman (R-Colo.), Cory Gardner (R-Colo.).

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