[House Report 107-341]
[From the U.S. Government Publishing Office]
107th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 107-341
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THORIUM REIMBURSEMENT
_______
December 18, 2001.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Tauzin, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 3343]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 3343) to amend title X of the Energy Policy Act
of 1992, and for other purposes, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 1
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 3
Hearings......................................................... 4
Committee Consideration.......................................... 4
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 4
Statement of General Performance Goals and Objectives............ 4
New Budget Authority, Entitlement Authority, and Tax Expenditures 4
Committee Cost Estimate.......................................... 4
Congressional Budget Office Estimate............................. 4
Federal Mandates Statement....................................... 6
Advisory Committee Statement..................................... 6
Constitutional Authority Statement............................... 6
Applicability to Legislative Branch.............................. 6
Section-by-Section Analysis of the Legislation................... 6
Changes in Existing Law Made by the Bill, as Reported............ 7
Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. REAUTHORIZATION OF THORIUM REIMBURSEMENT.
(a) Payments to Licensees.--Section 1001(b)(2)(C) of the Energy
Policy Act of 1992 (42 U.S.C. 2296a(b)(2)(C)) is amended--
(1) by striking ``$140,000,000'' and inserting
``$365,000,000''; and
(2) by adding at the end the following: ``Such payments shall
not exceed the following amounts:
``(i) $90,000,000 in fiscal year 2002.
``(ii) $55,000,000 in fiscal year 2003.
``(iii) $20,000,000 in fiscal year 2004.
``(iv) $20,000,000 in fiscal year 2005.
``(v) $20,000,000 in fiscal year 2006.
``(vi) $20,000,000 in fiscal year 2007.
Any amounts authorized to be paid in a fiscal year
under this subparagraph that are not paid in that
fiscal year may be paid in subsequent fiscal years.''.
(b) Authorization.--Section 1003(a) of such Act (42 U.S.C. 2296a-
2(a)) is amended by striking ``$490,000,000'' and inserting
``$715,000,000''.
(c) Deposits.--Section 1802(a) of the Atomic Energy Act of 1954 (42
U.S.C. 2297g-1(a)) is amended by striking ``$488,333,333'' and
inserting ``$518,233,333'' and by inserting after ``inflation'' the
phrase ``beginning on the date of the enactment of the Energy Policy
Act of 1992''.
(d) Portsmouth.--(1) Chapter 19 of the Atomic Energy Act of 1954 (42
U.S.C. 2015 and following) is amended by inserting the following after
section 241:
``SEC. 242. COLD STANDBY.
``The Secretary is authorized to expend such funds as may be
necessary for the purposes of maintaining enrichment capability at the
Portsmouth, Ohio, facility.''.
(2) The table of contents for such chapter is amended by inserting
the following new item after the item relating to section 241:
``Sec. 242. Cold standby.''.
SEC. 2. COMPTROLLER GENERAL AUDIT.
The Comptroller General shall conduct an audit on the Uranium
Enrichment Decontamination and Decommissioning Fund established under
section 1801 of the Atomic Energy Act of 1954 (42 U.S.C. 2297g). Not
later than March 1, 2003, the Comptroller General shall transmit to the
Congress a report on the results of the audit. Such report shall assess
whether the Fund as currently authorized will be of sufficient size and
duration for carrying out decontamination and decommissioning and
remedial action activities anticipated to be paid for from the fund,
and shall include recommendations for minimizing increases in such
activities. In conducting the audit, the Comptroller General shall
specifically address whether the deposits collected under sections
1802(c) and 1802(d) of the Atomic Energy Act of 1954 (42 U.S.C. 2297g-
1(c) and 2297g-1(d)) are sufficient to--
(1) pay for decontamination and decommissioning activities
pursuant to section 1803(b) of the Atomic Energy Act of 1954
(42 U.S.C. 2297g-2(b));
(2) pay for the remedial action costs pursuant to section
1803(c) of such Act (42 U.S.C. 2297g-2(c)); and
(3) pay for the remedial action costs pursuant to section
1001(b)(2)(C) and (D) of the Energy Policy Act of 1992 (42
U.S.C. 2296a(b)(2)(C) and (D)).
Purpose and Summary
The purpose of H.R. 3343 is to increase by $225 million the
authorization level for the thorium reimbursement program
established pursuant to Title X of the Energy Policy Act of
1992. The bill also increases deposits to the Uranium
Enrichment Decontamination and Decommissioning Fund by the same
amount, after adjustments for inflation. In addition, the bill
authorizes appropriations for the Secretary of Energy to
maintain the uranium enrichment facility at Portsmouth, Ohio on
cold standby. Finally, the bill requires the Comptroller
General to conduct an audit of the Uranium Enrichment
Decontamination and Decommissioning Fund and the programs paid
for by the fund, with regard to future costs and needs.
Background and Need for Legislation
Title X, Subtitle A of the Energy Policy Act of 1992
(EPAct) authorizes the Department of Energy (DOE) to use the
Uranium Enrichment Decontamination and Decommissioning Fund
(D&D Fund) established in Chapter 28 of the Atomic Energy Act
of 1954 to reimburse thorium processing site licensees for a
portion of the cost of environmental cleanup. There is only one
thorium-contaminated site which is owned by Kerr-McGee Chemical
Corporation (Kerr-McGee), and it is located in West Chicago,
Illinois.
Section 1001 of EPAct establishes the responsibility of
licensees for bearing the costs of decontamination,
decommissioning, reclamation and other remedial action at
active uranium and thorium sites where byproduct material has
been produced. However, the section also requires the Secretary
of Energy to reimburse annually a licensee for that portion of
the remedial cost the Secretary has determined is attributable
to byproduct material generated as the result of sales to the
federal government. In the case of the West Chicago site, DOE
has determined that 55.2% of the remedial cost is attributable
to government contracts. As such, Kerr-McGee manages the
cleanup, incurs cleanup costs at West Chicago at its own
expense, and submits claims for reimbursement of 55.2% of its
incurred costs. DOE reimburses claims submitted by Kerr-McGee
after the Department reviews the company's claims.
As enacted, EPAct authorized the Secretary to make
reimbursement payments to thorium licensees of not more than
$40 million. Public Law 104-259 increased the authorization to
$65 million, while Public Law 105-388 increased it to $140
million. Congress increased the cap on federal contributions as
cleanup activities have proceeded at the site and resulted in
corresponding additional submissions of receipts for
reimbursement.
At the end of 2000, Kerr-McGee had incurred cleanup costs
totaling $375 million, of which $207 million is potentially
eligible for Federal reimbursement. DOE has reimbursed only
$146 million of this amount, and has no authority to provide
additional reimbursements due to the current authorization cap
of $140 million (the additional $6 million is related to
authorized inflation adjustments). Thus, there is currently a
$61 million shortfall in reimbursement for cleanup costs
incurred through 2000.
Kerr-McGee currently projects that it will incur an
additional $298 million in additional cleanup costs to complete
the project. Of this amount, the potential amount eligible for
reimbursement by the Secretary is projected to be an additional
$164 million, bringing the total Federal contribution to $371
million ($146 million paid to date, plus $61 million in un-
reimbursed claims, plus $164 million in projected future
claims).
H.R. 3343 would increase the authorization in Section
1001(b)(2)(C) of EPAct to cover the full potential remaining
Federal contribution to the thorium cleanup. The bill would
also increase the annual cap on deposits to the D&D Fund by the
same amount, after adjustments for inflation, to cover the
costs of the thorium program, in order to assure that
sufficient funds are available for cleaning up the Portsmouth
and Paducah Gaseous Diffusion Plants, which are also paid for
out of the D&D Fund.
Hearings
The Committee on Energy and Commerce has not held hearings
on the legislation.
Committee Consideration
On Wednesday, December 12, 2001, the Full Committee met in
open markup session and ordered H.R. 3343 favorably reported to
the House, as amended, by a voice vote, a quorum being present.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto.
There were no record votes taken in connection with ordering
H.R. 3343 reported. A motion by Mr. Tauzin to order H.R. 3343
reported to the House, as amended, was agreed to by a voice
vote.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee has not held oversight
or legislative hearings on this legislation.
Statement of General Performance Goals and Objectives
The goal of H.R. 3343 is to increase the authorization to
cover the Federal cost-share for the cleanup of the thorium
contaminated site in West Chicago owned by the Kerr-McGee
Corporation.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
3343, a bill to amend title X of the Energy Policy Act of 1992,
and for other purposes, would result in no new or increased
budget authority, entitlement authority, or tax expenditures or
revenues.
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
Congressional Budget Office Estiamte
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, December 18, 2001.
Hon. W.J. ``Billy'' Tauzin,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3343, a bill to
amend title X of the Energy Policy Act and for other purposes.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Lisa Cash
Driskill.
Sincerely,
Barry B. Anderson,
(For Dan L. Crippen, Director).
Enclosure.
H.R. 3343--A bill to amend title X of the Energy Policy Act and for
other purposes
Summary: H.R. 3343 would authorize the appropriation of
$225 million over the 2002-2007 period for payments to private
contractors for remediation work at a thorium processing plant
that supplied nuclear material to the federal government.
Assuming appropriation of the authorized amounts, CBO estimates
that implementing the bill would cost $195 million over the
2002-2006 period, with the remaining $30 million spent after
2006.
The bill also would authorize the appropriation of such
sums as may be necessary for maintaining the uranium enrichment
capability of the Portsmouth Gaseous Diffusion Plant in 2002.
The Department of Energy (DOE) currently has the authority for
such activities under the Atomic Energy Act and plans to spend
about $65 million in 2002 to maintain the enrichment capability
at the Portsmouth facility. Therefore, this provision of the
bill would not add to costs that could be incurred under
current law. The bill also would require the Comptroller
General to provide an audit of the Uranium Decontamination and
Decommission Fund and report to the Congress. CBO estimates
that this work would have a negligible effect of federal
spending.
H.R. 3343 would not affect direct spending or receipts;
therefore, pay-as-you-go procedures would not apply. The bill
contains no intergovernmental or private-sector mandates as
defined in the Unfunded Mandates Reform Act (UMRA) and would
impose no costs on state, local, or tribal governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 3343 is shown in the following table.
The costs of this legislation fall within budget function 270
(energy).
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By fiscal year, in millions of dollars--
--------------------------------------------
2002 2003 2004 2005 2006
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CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated authorization level...................................... 90 55 20 20 20
Estimated outlays.................................................. 45 73 38 20 20
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Basis of estimate: For this estimate, CBO assumes that H.R.
3343 will be enacted in January 2002 and that all amounts
authorized will be appropriated in each year, as specified by
the bill. Outlays were estimated using historical spending
patterns for the decontamination program.
The bill would increase the amount authorized to pay a
private contractor for decontamination of a thorium processing
plant in West Chicago, Illinois, that formerly provided nuclear
material to the federal government. Based on information from
DOE, the additional funds that would be authorized by this bill
would be spent over the next several years. Thus, CBO estimates
that, implementing the bill would cost $195 million over the
2002-2006 period and $225 million over the 2002-2011 period.
Pay-as-you-go considerations: None.
Intergovernmental and private sector impact: H.R. 3343
contains no intergovernmental or private-sector mandates as
defined by UMRA and would impose no costs on state, local, or
tribal governments.
Estimate prepared by: Federal costs: Lisa Cash Driskill;
impact on State, local, and tribal governments: Elyse Goldman;
impact on the private sector: Lauren Marks.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional authority for this legislation is provided in
Article I, section 8, clause 3, which grants Congress the power
to regulate commerce with foreign nations, among the several
States, and with the Indian tribes.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Reauthorization of thorium reimbursement
Section 1(a) amends Title X of the Energy Policy Act of
1992 to increase the authorization for payments to thorium
licensees by $225 million, from its current level of $140
million to $365 million. The general authorization level in
Title X is also increased by $225 million in section 1(b) to
match the increase in section 1(a). The new additional
authority is subject to annual limits effectively requiring the
new authority to be amortized over a six-year period beginning
in fiscal year 2002. The Committee has included these specific
annual limits in an effort to help avoid the potential for
competition with other cleanup activities paid for from the D&D
Fund. Payments to the thorium licensee shall not exceed the
authorized amount in any year; however, any amounts authorized
to be paid in a fiscal year that are not paid in that year may
carry over and be paid in subsequent fiscal years.
Section 1(c) amends Section 1802(a) of the Atomic Energy
Act to increase the required D&D Fund deposits by $29.9 million
per year which is equal to the $225 million increase in the
thorium reimbursement after adjusting the amount to reflect
1992 constant dollars. Thus, the Committee expects there to be
no adverse impact on the availability of money for other
projects authorized to be paid for out of the D&D Fund. The
Committee has not increased the special assessment on domestic
utilities in Section 1802(c) of the Atomic Energy Act, thereby
requiring the additional cost of deposits to be paid for by the
appropriations from general revenues authorized by Section
1802(d). This section also clarifies that the D&D Fund annual
deposit amount of $518,233,333--which is in 1992 constant
dollars--should continue to be adjusted annually for inflation
using the date of the enactment of the Energy Policy Act of
1992 as the baseline for inflation adjustments.
Section 1(d) amends the Atomic Energy Act to authorize
appropriations to the Secretary of Energy to expend such funds
as may be necessary for the purpose of keeping the Portsmouth
Gaseous Diffusion Plant in Portsmouth, Ohio, on cold standby.
DOE is not provided with any authority to use monies from the
D&D fund for this purpose. Indeed, the Committee language
specifically amends Chapter 19 of the Atomic Energy Act rather
than Chapter 28 in order to avoid the appearance that it is in
any way affecting the previously authorized uses of the D&D
Fund.
Section 2. Comptroller General audit
This section requires the Comptroller General to audit the
D&D Fund and report its findings to Congress no later than
March 1, 2003. In reporting to Congress, the Comptroller
General is to assess whether the Fund will be of sufficient
size and duration to cover the costs of all the activities
authorized to be paid for from the fund. The Comptroller
General should pay particular attention to any factors
contributing to increased costs, in order to aid in accurately
projecting the future demands on the fund. The Committee
expects that this examination will also assist the Comptroller
General in fulfilling the bill's requirement that he make
recommendations for curtailing future increases in cleanup
costs. The legislation also directs the Comptroller General to
address whether the collections and deposits made pursuant to
sections 1802(c) and 1802(d) of the Atomic Energy Act are
providing revenue of sufficient size and duration to cover all
the costs of the activities that the Atomic Energy Act and
EPAct require the D&D Fund to support.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
ENERGY POLICY ACT OF 1992
* * * * * * *
TITLE X--REMEDIAL ACTION AND URANIUM REVITALIZATION
Subtitle A--Remedial Action at Active Processing Sites
SEC. 1001. REMEDIAL ACTION PROGRAM.
(a) * * *
(b) Reimbursement.--
(1) * * *
(2) Amount.--
(A) * * *
* * * * * * *
(C) To thorium licensees.--Payments made
under paragraph (1) to the licensee of the
active thorium site shall not exceed
[$140,000,000] $365,000,000, and may only be
made for off-site disposal. Such payments shall
not exceed the following amounts:
(i) $90,000,000 in fiscal year 2002.
(ii) $55,000,000 in fiscal year 2003.
(iii) $20,000,000 in fiscal year
2004.
(iv) $20,000,000 in fiscal year 2005.
(v) $20,000,000 in fiscal year 2006.
(vi) $20,000,000 in fiscal year 2007.
Any amounts authorized to be paid in a fiscal
year under this subparagraph that are not paid
in that fiscal year may be paid in subsequent
fiscal years.
* * * * * * *
SEC. 1003. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There is authorized to be appropriated
[$490,000,000] $715,000,000 to carry out this subtitle. The
aggregate amount authorized in the preceding sentence shall be
increased annually as provided in section 1001, based upon an
inflation index to be determined by the Secretary.
* * * * * * *
----------
ATOMIC ENERGY ACT OF 1954
ATOMIC ENERGY ACT OF 1954
TABLE OF CONTENTS
TITLE I--ATOMIC ENERGY
* * * * * * *
Chapter 19. Miscellaneous
Sec. 241. Transfer of Property.
Sec. 242. Cold standby.
* * * * * * *
TITLE I--ATOMIC ENERGY
* * * * * * *
CHAPTER 19. MISCELLANEOUS
* * * * * * *
SEC. 242. COLD STANDBY.
The Secretary is authorized to expend such funds as may be
necessary for the purposes of maintaining enrichment capability
at the Portsmouth, Ohio, facility.
* * * * * * *
TITLE II--UNITED STATES ENRICHMENT CORPORATION
* * * * * * *
CHAPTER 28--DECONTAMINATION AND DECOMMISSIONING
* * * * * * *
SEC. 1802. DEPOSITS.
(a) Amount.--The Fund shall consist of deposits in the amount
of [$488,333,333] $518,233,333 per fiscal year (to be annually
adjusted for inflation beginning on the date of the enactment
of the Energy Policy Act of 1992 using the Consumer Price Index
for all-urban consumers published by the Department of Labor)
as provided in this section.
* * * * * * *