Uranium Enrichment Decontamination and Decommissioning Fund: Status and Funding Issues

Uranium Enrichment Decontamination and Decommissioning Fund: Status and Funding Issues

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November 27, 2019
Uranium Enrichment Decontamination and Decommissioning
Fund: Status and Funding Issues
Decades of uranium enrichment by the federal government
0040), Contract/Post-Closure Liabilities/Administration (PO-0103),
resulted in the contamination of buildings and structures,
Community and Regulatory Support (PO-0104). U/Th = Uranium and
generated substantial volumes of radioactive and other
Thorium Reimbursements (HQ-UR-0100). Dol ars are presented in
hazardous wastes, and resulted in environmental
mil ions and may not sum due to rounding.
contamination of the soil, sediments, surface water, and
groundwater at federal uranium enrichment facilities. The
Uranium Enrichment Facilities
Energy Policy Act of 1992 (P.L. 102-486; Title XI)
The federal government, through DOE’s predecessor
established the Uranium Enrichment Decontamination and
agencies (e.g., Atomic Energy Commission), enriched
Decommissioning (UED&D) Fund to support the closure of
uranium in the fissile isotope U-235 for use in both
federal uranium enrichment facilities and the remediation of
commercial nuclear power fuel and defense activities (e.g.,
related waste and contamination. With monies appropriated
nuclear warhead production and Naval Nuclear Propulsion
annually from the UED&D Fund, the Department of
Program). The federal government constructed three
Energy’s Office of Environmental Management (DOE-EM)
gaseous diffusion facilities to enrich uranium for national
administers closure and remediation of federal uranium
defense purposes: the Paducah site in Kentucky, the
enrichment facilities and reimburses eligible uranium and
Portsmouth site in Ohio, and the Oak Ridge site in
thorium licensees for cleanup activities. As of FY2019,
Tennessee. Once the national defense stockpile of enriched
DOE estimates that remaining liabilities associated with the
uranium was deemed sufficient for military purposes in the
UED&D Fund range from $40.4 billion to $47.9 billion
early 1960s, the three plants focused on providing enriched
(see Table 1 for a site breakout). The end-of-year balance
uranium fuel for the growing fleet of commercial nuclear
of the UED&D Fund was $2.2 billion in FY2018, which
power plants at that time. In 1992, Congress sought to
presents an issue for Congress about how and whether to
transition the federal government out of the commercial
provide funding for the remaining liabilities. DOE estimates
nuclear fuel business. Title IX of the Energy Policy Act of
that remediation and closure at these sites may continue for
1992 established the U.S. Enrichment Corporation (USEC)
decades, after which the federal government would be
as a federal corporation that would be privatized over time.
responsible for long-term stewardship of residual
The act authorized DOE to lease federal enrichment
contamination and waste containment at these sites.
facilities to USEC to continue the production of enriched
uranium fuel for electric utilities. These three facilities have
Table 1. DOE Estimates of Remaining UED&D Fund
since ceased operations at various times: Paducah (2013),
Liabilities as of FY2019
Portsmouth (2001), and Oak Ridge (1985). The U.S.
government does not have an operational facility to enrich
Year of
Low
High
uranium for defense purposes. One operational commercial
Estimated
Estimate Estimate uranium enrichment facility is located in New Mexico.
Site/Activity
Completion
($M)
($M)
Oak Ridge, TN
2046
$1,112
$1,485 Cleanup of these DOE facilities is a diverse and complex
Paducah, KY
2065-2070
$27,811
$33,905 challenge that generally encompasses four categories of
Portsmouth, OH
2039-2041
$11,506
$12,521 activities: (1) decontamination and decommissioning of
U/Th Reimbursements

$131
$131 buildings and facilities, (2) remediation of environmental
Total

$40,429
$47,911 contamination, (3) permanent disposal of wastes resulting
Source: CRS compiled completion estimates from the U.S.
from past enrichment operations and remedial activities,
Department of Energy (DOE), FY2020 Budget Justification, vol. 5:
and (4) long-term surveillance and maintenance of facilities
Environmental Management, p. 41. CRS compiled cost estimates from
after closure is complete. DOE funds additional projects at
DOE, FY2019 Budget Justification, vol. 5: Environmental Management,
these sites from two other accounts: the Non-Defense
p. 84 and pp. 93-99. DOE did not provide cost estimates in the
Environmental Cleanup account and the Defense
FY2020 budget request.
Environmental Cleanup account.
Notes: D&D = Decontamination and Decommissioning. Oak Ridge
Title X Uranium and Thorium
projects: Nuclear Facility D&D-East Tennessee Technology Park
Reimbursements
(OR-0040), East Tennessee Technology Park Contract/Post-Closure
Congress passed the Uranium Mill Tailings Radiation
Liabilities/Administration (OR-0102). Paducah projects: Nuclear
Control Act of 1978 (UMTRCA, P.L. 95-604) in the wake
Facility D&D (PA-0040), Contract/Post-Closure
of environmental and public health concerns about
Liabilities/Administration (PA-0102), and Community and Regulatory
exposures to radiological and non-radiological material
Support (PA-0103). Portsmouth projects: Nuclear Facility D&D (PO-
originating from Cold War–era uranium mill tailing sites.
Uranium mills process uranium ore to produce uranium
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Uranium Enrichment Decontamination and Decommissioning Fund: Status and Funding Issues
concentrate (“yellowcake”), which is subsequently
Figure 1. UED&D Fund Balance, Appropriations, and
enriched. Title I of UMTRCA authorized a remedial action
Receipts: FY1993-FY2018, FY2019, and FY2020
program for uranium mill tailings sites that were inactive
Estimates
prior to 1978, which produced uranium concentrate under
Mil ions of nominal dol ars, not adjusted for inflation
federal procurement contracts. Title II of UMTRCA
authorized the regulation of uranium mills and tailings sites
that were operating on or after the law’s enactment. Under
UMTRCA, the federal government was responsible for the
cleanup costs at Title I sites, while private licensees are
responsible for funding the decommissioning of Title II
sites. Some uranium mills produced uranium concentrate
under both federal procurement contracts and commercial
civilian nuclear power production. Title X of the Energy
Policy Act of 1992 authorized reimbursements to pay Title
II uranium and thorium licensees for remediation costs
proportional to the quantity of byproduct material produced
under federal procurement contracts. Reimbursement
payments under Title X do not absolve these licensees from
completing site decommissioning requirements. DOE-EM
administers reimbursement payments, subject to annual
appropriations, for the remediation of eligible Title II sites
with funds from the UED&D Fund.
UED&D Fund Receipts and
Appropriations
To finance the fund, Title XI of the Energy Policy Act of
1992 authorized the collection of assessments from electric
utilities and payments by the federal government from

appropriations out of the General Fund of the U.S.
Source: Compiled by CRS from the Office of Management and
Treasury, as both electric utilities and the federal
Budget (OMB) Appendix to the President’s annual budget requests
government benefitted from the production of enriched
from FY1995 to FY2020.
uranium. Congress appropriated funding from the UED&D
Notes: FY2019 and FY2020 receipts and FY2020 UED&D Fund
fund for the first time in FY1994. The authority to collect
balance are from OMB estimates. The federal payment in FY2018 was
the utility assessments, and the authorization of
a one-time transfer of the remaining balance of the Uranium Supply
appropriations for the federal payments, expired on October
and Enrichment Activities account to the UED&D Fund. Congress
24, 2007. Congress has continued federal payments to the
appropriated $841 mil ion for FY2019, while FY2020 appropriations
fund through the annual appropriations process in most
are the President’s request.
fiscal years. Interest accrued to the balance of the fund
continues to provide annual receipts to the UED&D Fund.
FY2020 Appropriations
Congress appropriates money from the General Fund to the
In the 116th Congress, the House-passed Energy and Water
Defense Environmental Cleanup account, then authorizes
Development and Related Agencies Appropriations Act,
transfers of a specific amount to the UED&D Fund for the
2020 (H.R. 2740) would provide $874 million from the
federal payments. Congress did not authorize General Fund
UED&D Fund. Of that amount, H.Rept. 116-83
transfers from the Defense Environmental Cleanup account
recommends UED&D Fund appropriations for Oak Ridge
to the UED&D Fund for FY2012-FY2014, FY2016, and
($196 million), Paducah ($207 million), Portsmouth ($418
FY2019. In FY2019, P.L. 115-244 appropriated $841
million), uranium and thorium reimbursements ($31
million from the UED&D Fund.
million), and pension and community and regulatory
support ($22 million). As reported, the Senate version of
Since FY2011, annual appropriations from the UED&D
the bill (S. 2470) would provide $907 million from the
Fund have generally exceeded annual receipts from
UED&D Fund. Of that amount, S.Rept. 116-102
payments and interest, resulting in a declining balance
recommends UED&D Fund appropriations for Oak Ridge
(Figure 1). The end-of-year balance of the UED&D Fund
($196 million), Paducah ($240 million), Portsmouth ($418
($2.2 billion as of FY2018) would not be sufficient to pay
million), uranium and thorium reimbursements ($31
the estimated costs to complete planned cleanup actions
million), and pension and community and regulatory
over the long term (up to $47.9 billion estimated by DOE).
support ($22 million). All three sites receive a portion of
If the amount in the fund is insufficient to pay for annual
the pension and community and regulatory support
cleanup needs, authorizations for federal payments and
appropriation. Neither bill would authorize General Fund
interest would have to equal annual appropriations to
transfers from the Defense Environmental Cleanup account
continue to pay down the estimated remaining liabilities.
to the UED&D Fund for FY2020.
The Energy Policy Act of 1992 states that DOE is
responsible for the costs subject to annual appropriations.
Lance N. Larson, Analyst in Environmental Policy
IF11372
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Uranium Enrichment Decontamination and Decommissioning Fund: Status and Funding Issues

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