Summary

GAO testified on legislative proposals that address the future of the Department of Energy's (DOE) uranium enrichment program, established to promote national energy security goals while recovering the government's costs. Each of the three bills and a proposal by Representative Sharp would help establish clear objectives for the enrichment program and allow the new corporation to operate more efficiently than does DOE's current program. The proposals would also help resolve several long-term issues that challenge the program's future, including the need to pay billions of dollars for environmental cleanup and decommissioning at the same time that competition is expected to increase. In addition, GAO believes that all the proposals would be strengthened by including a $3 billion cost recovery goal, rather than forgiving all past recovered costs or relying on unspecified dividends, uncertain stock sales, or undefined rent or royalty payments that may not materialize.