Kenneth Fletcher
NS&D Monitor
6/5/2015
Former Deputy Energy Secretary Dan Poneman’s appointment to lead Centrus Energy should not impact funding support from Congress for the American Centrifuge technology, Rep. Chuck Fleischmann (R-Tenn.) said late this week. Poneman, who left DOE last fall, was appointed as CEO of Centrus Energy in March in a move that has prompted concern from some lawmakers who cited potential conflict of interest due to DOE’s support for Centrus, then known as USEC, while Poneman was at the Department. “Let’s face it, the American people own this technology and American Centrifuge is very important. So I’m committed to the ultimate success,” Fleischmann, vice chair of the House Energy and Water Appropriations Subcommittee, said at a meeting of the Energy Facility Contractors Group. “When I had this discussion with our majority leader about that, there were questions not so much about the structure of who is leading it, but what are you doing, where are you going and where has it been.”
Centrus is currently maintaining the American Centrifuge technology under a subcontract with Oak Ridge National Laboratory, located in Fleischmann’s district. “I’ve met with Deputy Secretary Poneman. He’s very bright, I’ve worked with him in his prior capacity. I’m glad that he stepped up to take this new role,” Fleischmann said. “I think Centrus needs new leadership, because frankly its predecessor had some problems and it didn’t get there. So if we are going to have success with American Centrifuge, I want to be sure we can do everything logistically so we can get there. I think it’s too important, I don’t think we can fail at this.”
Several Lawmakers Raise Concern on Poneman’s Appointment
Poneman’s appointment to Centrus raised questions from lawmakers including Sens. John Barrasso (R-Wyo.) and Dianne Feinstein (D-Calif.), and also has prompted a probe led by Rep. Cynthia Lummis (D-Wyo.) of the House Oversight and Government Reform Committee. During Poneman’s five-year tenure at DOE, the Department took numerous actions that benefitted Centrus, then known as USEC. That includes $260 million in support of the American Centrifuge technology as part of a cost-share RD&D program, as well as a transfer of uranium tails valued at hundreds of millions of dollars aiming to extend the company’s operations at the Paducah Gaseous Diffusion Plant. In 2014, DOE requested a $33 million reprogramming for American Centrifuge, as well as a $23 million extension to the RD&D program and backed a contract for the firm to maintain the technology at Oak Ridge National Laboratory.
DOE, Poneman Emphasize No Ethics Violations
DOE and Centrus have maintained that Poneman has not violated any ethics regulations. Poneman has agreed to a two-year prohibition on communications with DOE officials, according to Centrus. DOE Deputy General Counsel Eric Fygi said in an April 30 letter to Barrasso that Poneman has met applicable requirements. “An examination of appropriate documents does not reveal any indication that former Deputy Secretary Poneman violated any ethical obligations applicable to Federal employees with respect to potential employment with Centrus at any time during his service at the Department of Energy,” the letter states.
