Lummis, Hinojosa Introduce Bill to Protect Jobs, Fuel America

Statement

Lummis, Hinojosa Introduce Bill to Protect Jobs, Fuel America

Today, U.S. Congressman Cynthia Lummis (R-WY) and Congressman Rubén Hinojosa (D-TX) introduced H.R. 5068, the Surplus Uranium Disposition Act. The bipartisan legislation would protect good-paying jobs in the nuclear energy sector, and help ensure that the uranium industry remains on a path to provide clean, home-grown fuel to benefit all Americans. H.R. 5068 sets a fair market value and transparent annual cap on the amount of government-held uranium that can be sold, bartered or traded on the market.

"The confusion and uncertainty that continues to hamper the domestic uranium industry puts Wyoming jobs on the line and is a stumbling block in the way of energy independence in the U.S.," said Lummis. "To dump excess, government-owned uranium on the market is to pit the U.S. government directly against a domestic industry that so far produces only a tenth of the uranium needed in this country. The nuclear industry will be an important part of America's all-of-the-above energy plan. Uranium mining provides many in Wyoming with steady work and continues to provide supplies for a growing nuclear utility industry. The stakes are simply too high to allow for further mistakes," Lummis said.

"This is about keeping people employed in Texas and other states in our country," said Hinojosa. America is about fairness and opportunities in all aspects of life, including businesses and employees. We must ensure that these opportunities are bolstered by the U.S. government. This bill helps secure our domestic sources of energy. It also follows President Obama's energy policy which is working to keep America on the path to energy independence."

Senators Barrasso (R-WY) and Nelson (D-NE) are introducing a companion measure in the U.S. Senate.

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.

Source