Barrasso, Nelson Introduce Bill to Protect Valuable Uranium Industry Jobs

Press Release

Barrasso, Nelson Introduce Bill to Protect Valuable Uranium Industry Jobs

Today, U.S. Senators John Barrasso (R-Wyo.) and Ben Nelson (D-Neb.) introduced the Surplus Uranium Disposition Act (S. 3233). By codifying the U. S. Department of Energy's Excess Uranium Inventory Management Plan, this bill will protect American jobs and ensure proper management of government-held uranium.

"The Department of Energy's ad hoc uranium management strategy continues to disrupt America's uranium industry and threaten jobs across our country. Our bill will establish a formal policy that prevents Washington from forcing too much of its uranium stockpile into the market, undercutting American jobs and American energy security. It's also important to remember that the United States currently imports 90 percent of the uranium used to power our nuclear reactors. In order to expand America's nuclear energy capacity, we must have a strong uranium workforce," said Barrasso.

"Providing more price stability for domestically-produced uranium and preserving a crucial American energy market are clearly a win-win for America. This bill is in the best interests of Nebraska, which produces roughly 20 percent of the nation's uranium, and our national security interests. Considering the American jobs at stake and the potential for nuclear-generated electricity to help America become more energy independent, we should provide clarity for this important industry," said Nelson.

BACKGROUND

In 2008, DOE issued the Excess Uranium Inventory Management Plan to provide efficient and transparent disposition of excess uranium owned by the U.S. government. It was intended to limit adverse impacts on the domestic mining, conversion and enrichment industries while maximizing the return for taxpayers from DOE's uranium. However, DOE has failed to abide by the plan. The Department continues to make ad hoc decisions that flood government-owned uranium into the market. DOE's actions create uncertainty in the uranium market, undercut domestic uranium mining and conversion, and jeopardize American jobs. DOE also fails to receive a proper return for the taxpayer for government-owned uranium.

The Surplus Uranium Disposition Act will address these issues by requiring the DOE to follow its own Excess Uranium Inventory Management Plan. Specifically, the Surplus Uranium Disposition Act:

* Provides DOE Sale Authority - Provides the Secretary of Energy with the authority to barter, transfer, or sell surplus uranium inventory from the Department of Energy inventories at fair market value in accordance with the framework provided by this bill.
* Ensures Fair and Transparent Transactions -- Ensures that the U.S. receives fair market value for all excess uranium transactions conducted. The Department must carry out all transactions in a transparent and competitive manner.
* Caps Additional DOE Barters, Transfers or Sales -- In addition to the initial core sales, the Secretary may barter, transfer, or sell uranium to eligible entities and at fair market value in accordance with the schedule included in the Excess Uranium Inventory Management Plan.
* Supports ongoing DOE programs - Requires the Department of Energy to maintain a sufficient inventory of uranium to meet the current and foreseeable needs of the Department.
* Delivers Market Stability Through Long-Term Contracts -- Requires that long-term contracts must account for at least 50 percent of the quantity of excess uranium bartered, transferred, or sold during each calendar year.
* Contains Energy Security Protections - Requires the Department of Energy to maintain at least 20 million pounds of its excess uranium as a reserve inventory, which can only be used in cases of national energy emergency.

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