GAO report: DOE “did not have authority” to transfer uranium to USEC

Uranium mining Shutterstock

Officials with the U.S. Department of Energy did not have the authority to transfer uranium resources to USEC Inc.

A report with the U.S. Government Accountability Office (GAO) brought up legal concerns with four uranium transactions that supplied USEC with operating cash in 2012 and 2013. Three of the four transactions involved transferring ownership of depleted uranium tails, a product of the enrichment process generally considered to be an environmental liability, “but can have value as an asset when uranium market conditions make tails re-enrichment economical in lieu of enriching natural uranium.” The GAO reported stated “in two transactions, DOE accepted ownership of tails, along with liability for disposal costs, in exchange for other benefits. In a third transaction, DOE transferred ownership of tails to a third party to be re-enriched by USEC. The fourth involved the transfer of uranium material other than tails.”

In DOE’s transfer of the tails to a third party - the largest of the four - GAO said DOE likely did not have authority to transfer tails under restrictions imposed by the USEC Privatization Act. DOE countered, saying it had sufficient authority under the Atomic Energy Act, but GAO noted that even if DOE had the authority, it did not meet the Act’s requirement to charge a price for the tails because DOE transferred the tails without charging anything at all. In another transaction, DOE “transferred ownership of uranium material obtained to meet national security needs without obtaining a presidential determination that the uranium was no longer necessary for national security needs,” which is also required under the Act.

DOE funded about 80 percent of USEC’s American Centrifuge Project in Ohio, but that funding ended in January 2014. USEC is transitioning the Paducah Gaseous Diffusion Plant in Kentucky back to DOE. USEC filed for Chapter 11 bankruptcy the following March as part of a financial restructuring plan.

To read GAO’s report and recommended actions, click here.

Subscribe to Nuclear Power International magazine

2014 Articles

Harvard Law School professor pays Clean Power Plan is unconstitutional

12/31/2014

Laurence H. Tribe, professor of constitutional law at Harvard University and former mentor to Barack Obama, said in an article last week that the EPA’s Clean Power Plan is unconstitutional.

3 SKorea workers die at nuke plant construction site

12/30/2014

SEOUL, South Korea (AP) — Three South Korean workers died Friday after apparently inhaling toxic gas at a construction site for a nuclear plant being built by South Korea's monopoly nuclear power company, which has come un...

UMaine in business of certifying turbine blades

12/30/2014

ORONO, Maine (AP) — The University of Maine has tested its largest wind turbine blade to date. UMaine's Advanced Structures and Composites Center completed static strength testing this month of a 184-foot-long wind turbine...

Mergers, EPA carbon plan generated much attention during 2014

12/29/2014

Mergers, the Environmental Protection Agency (EPA) Clean Power Plan, cheap natural gas and the polar vortex were among the most noteworthy generation stories of 2014.

Developer opens Ohio review for 800-MW, gas-fired project

12/29/2014

Clean Energy Future-Lordstown LLC plans an 800-MW, gas-fired power project, and on Dec. 24 applied with the Ohio Power Siting Board for certain routine waivers it needs before filing a full siting application for this proj...

New England utility exec named to Vermont PSB

12/29/2014

A woman who worked for Vermont's Department of Public Service for 17 years is going to become the next member of the utility-regulating Public Service Board. The appointment of Sarah Hofmann was announced Monday by Gov. Pe...

Brown picks aide to lead troubled California utility board

12/29/2014

Gov. Jerry Brown named a former adviser on Tuesday to be the next head of California's troubled utilities commission, replacing a regulatory chief accused of back-channel dealings with utilities. Michael Picker, a former a...

Washington state carbon emissions dropped in 2011

12/29/2014

Greenhouse gas emissions in Washington state dropped by about 4.6 percent between 2010 and 2011, led by reductions in emissions from the electricity sector, according to the latest figures released by the state. The latest...

Group wants state regulators recused from PNM case

12/29/2014

State regulators in less than two weeks are to begin deliberating a proposal that calls for shutting down part of an aging coal-fired power plant in northwestern New Mexico that serves more than 2 million customers in the ...

Vermont Yankee plant prepares to shut down

12/29/2014

The Vermont Yankee nuclear plant is getting ready to shut down. Its owner, Entergy Corp., says it is closing the plant for economic reasons. The plant in Vernon is expected to disconnect from the regional power grid Monday.

PSEG Solar to acquire Maryland solar project from juwi

12/23/2014

PSEG Solar Source will acquire a 12.9-MW solar energy facility near Waldorf, Maryland from juwi solar (JSI). The PSEG Waldorf Solar Energy Center will increase the capacity of PSEG Solar Source's portfolio to 123-MW.

PG&E discloses more emails with state regulators

12/23/2014

California's largest power utility released a dozen more emails Monday that it said showed improper back-channel discussions between the utility and top state regulators.

Indianapolis airport solar farm expansion completed

12/23/2014

Contractors have finished bringing online dozens of acres of solar panels at Indianapolis International Airport, solidifying its status as the home of the nation's largest airport-based solar farm.

French power company to pay $772M in bribery case

12/23/2014

A French power and transportation company has agreed to pay $772 million to resolve allegations that it bribed high-ranking foreign government officials for lucrative projects, the Justice Department said Monday.

Nebraska nuclear plant back online after short outage

12/23/2014

The Fort Calhoun nuclear power plant is back online less than a week after its main generator unexpectedly shut down as a precaution.

Ameren Missouri plans $135M in energy efficiency

12/23/2014

Missouri's largest electric company said Monday that it plans to invest $135 million in energy efficiency programs for customers over a three-year period.

TEPCO completes nuclear fuel assemblies removal from Fukushima 4

12/22/2014

Tokyo Electric Power Co. (TEPCO) said it has safely removed the fuel assemblies from the most damaged nuclear reactor at the Fukushima Daiichi nuclear power plant.

B&W Vølund to build waste-to-energy power plant in Scotland

12/22/2014

In a consortium with Interserve, Babcock & Wilcox Co.’s (B&W, NYSE:BWC) subsidiary, Babcock & Wilcox Vølund A/S (B&W Vølund), will engineer, procure and construct (EPC) a waste-to-energy (WTE) power plant f...

SKorea holds N-plant drills against cyber threats

12/22/2014

South Korea's monopoly nuclear power company said it began drills Monday against possible cyberattacks after online threats of attack against its plants.

PSC approves solar power project

12/22/2014

The Public Service Commission has approved solar power project planned by Kentucky Utilities and Louisville Gas and Electric in Mercer County.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...