Statement of Congressman John D. Dingell, Chairman
Committee on Energy and Commerce

SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS HEARING ENTITLED, "SELLING THE DEPARTMENT OF ENERGY'S DEPLETED URANIUM STOCKPILE: OPPORTUNITIES AND CHALLENGES"

Mr. Chairman, thank you for holding today’s hearing. It is not every day that we have the opportunity to save the taxpayer money. This Subcommittee has identified the opportunity to return $7.6 billion to the American taxpayer. Today, we will explore why the Department of Energy (DOE) has failed to take advantage of this opportunity.

Specifically, we will examine whether the Department of Energy has developed a concrete plan to recoup for the taxpayer the unexpected windfall caused by a tenfold increase in the price of uranium. That jump in uranium prices has transformed a large part of DOE’s depleted uranium tails from an environmental liability to a potential $7.6 billion asset, according to estimates by the Government Accountability Office (GAO).

This price jump is not brand new. Almost three years ago, the uranium prices increased to the point where re-enrichment of tails became economically attractive. Despite extended internal deliberations, the only tangible evidence of DOE action is a Secretarial Policy statement issued several weeks ago, after they learned of our hearing and the critical GAO report. We need more than policy statements and a Department that simply reacts after they get caught by Congress.

Eight years ago, the depleted uranium had zero value, and my concern is that it could become worthless again while DOE dithers. DOE needs to show some urgency, and not simply punt this to the next Administration.

We need to assess whether Congress needs to legislate, as GAO suggests, and whether we need to set timetables, since DOE appears unwilling or incapable of assuming leadership.

Should DOE contract to re-enrich these tails at Paducah? Can a deal be struck that is fair to American taxpayers? Should we auction these valuable uranium tailings to utilities? Many in the power industry agree with this approach. We sent the DOE Under Secretary a letter on February 14, 2008, asking that he solicit the nuclear utilities for their interest in buying tails at auction. This was not done. We need to learn why.

While we understand it will take a decade to fully capture such benefits due to the limited capacity of uranium enrichment in the United States, DOE needs to move on this so the process can begin this year.

We must keep in mind that today’s hearing is not just about depleted uranium. It is about the opportunity to return billions of dollars to the Treasury that could fund other needed programs. Using GAO’s estimate, DOE could potentially convert its depleted uranium waste into a $1.4 billion return to the Treasury over the next four years. How could such revenue be used? Here are some examples:

• It could help finance $210 million for the Food and Drug Administration to modernize safety standards for fresh produce and other raw foods and implement inspection programs.
• It could provide four years of health insurance coverage for half a million children under SCHIP.
• It could close $21 million in budget gaps to Indian Health Services program.

Mr. Chairman, I congratulate you for holding this hearing so we may assess DOE’s stewardship of this resource, and learn from our witnesses how best to maximize returns to the American taxpayer.