Reductions Could Have $65 Million Impact in FY’16
Kenneth Fletcher
WC Monitor
5/15/2015
Members of Ohio’s Congressional delegation expressed concern this week over the impact on Portsmouth cleanup of the Department of Energy’s recent decision to reduce its uranium transfers. D&D funding at Portsmouth comes in a large part from the sale of DOE-owned uranium that is transferred to cleanup contractor Fluor B&W Portsmouth, and the Department last week released a new Secretarial Determination cutting the transfers from 600 metric tons per quarter to 400 metric tons per quarter. That is expected have an impact of about $65 million in Fiscal Year 2016 for Fluor B&W. “Unfortunately, the Department of Energy’s latest Determination would undo the recent progress made by the House of Representatives in keeping the clean-up project on track, and unnecessarily reduce the project’s funding source by tens of millions of dollars,” Rep. Brad Wenstrup (R-Ohio) said in a statement this week. “Such a devastating reduction in funding is not compatible with the goal of completing the work by 2024.”
Portsmouth cleanup has gone through a funding roller coaster for FY’15 and ’16. DOE’s proposed FY 2016 budget of $167 million for Portsmouth drew criticism from union leaders and members of Ohio’s Congressional delegation concerned about the potential impacts of the cuts to the site’s workforce and cleanup progress. Fluor B&W got some relief in the House version of the FY’16 Energy and Water spending bill passed early this month, which boosted funds to $213.4 million. That comes after proposed budget cuts in FY’15 led to the threat of hundreds of layoffs there. Site contractor Fluor-B&W Portsmouth, LLC, was able to avoid such layoffs, though, after lawmakers provided an additional $76.4 million as part of the final FY 2015 appropriations legislation passed in December.
Rep. Johnson: Reduction in Uranium Transfers ‘Very Troubling’
DOE has long faced opposition to the transfers from some in the uranium mining, conversion and enrichment industry, which claim they have a negative impact on the industry. DOE’s decision to reduce the transfers came after a lawsuit from uranium conversion company ConverDyn and increased pressure from some lawmakers. FBP this week referred requests for comment on impacts to DOE. “There will be a reduction in the amount of uranium available to fund D&D services beginning in July 2015. Impacts over time will depend on uranium market prices and on the level of appropriated funding,” according to a DOE statement.
But the cut in transfers is now drawing the ire of some Ohio lawmakers. “The Department of Energy’s Secretarial Determination to decrease the amount of uranium transfers to support Piketon cleanup efforts is very troubling,” Rep. Brad Johnson (R-Ohio) said in a statement. “Unfortunately, the determination could jeopardize the accelerated cleanup schedule and cause workforce disruption. This is unacceptable. It is important that the DOE maintain its commitment to the Piketon community by continuing to fully fund these critical operations.”
Wenstrup: Portsmouth ‘Merits the DOE’s Immediate Attention to Ensure Financial Stability’
Emphasizing his concern about the transfers, Wenstrup this week also stressed the need for stable funding. “Clean-up and restoration work is critically important to southern Ohio, and merits the DOE’s immediate attention to ensure financial stability, fulfill the federal obligation to the community, and sustain productivity at the site,” he said. “The people of Southern Ohio worked extremely hard for the national security interests of the U.S. during the Cold War, and would hope that DOE does not abandon them in their time of need.”
Sen. Sherrod Brown (D-Ohio) this week expressed support for cleanup at Portsmouth when asked about DOE’s reductions in uranium transfers. “The ongoing cleanup efforts at Portsmouth are critical to the area’s economic success and jobs – and I share the community’s commitment to seeing it through to completion,” Brown said in a statement. “I will continue working with local residents and officials to make sure we meet the Piketon community’s needs for this project.”
