[Congressional Record Volume 146, Number 87 (Monday, July 10, 2000)]
[House]
[Pages H5725-H5727]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     NUCLEAR ENERGY CRISIS LOOMING

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Ohio (Mr. Strickland) is recognized for 5 minutes.
  Mr. STRICKLAND. Mr. Speaker, we all know what happens when we are too 
reliant on foreign sources for oil; and, as a result, in my district in 
southern Ohio and across this country, consumers are paying outrageous 
prices for a gallon of gasoline.
  But there is another energy crisis looming that many of us seem not 
to be aware of. I think it is important for

[[Page H5726]]

Members of this House and for citizens of this country to be aware of 
the fact that 23 percent of our Nation's electricity is generated by 
the use of nuclear power plants, and almost all of that fuel comes from 
a domestic source.
  Unfortunately, in July of 1998, the United States Enrichment 
Corporation, which is the public corporation that was responsible for 
operating the two existing uranium enrichment facilities in this 
country, that corporation was privatized. Since privatization, 
disasters have occurred.
  The mining industry is on the verge of collapse. The conversion 
industry, there is only one conversion plant in this country, and that 
is in Metropolis, Illinois. It is on the verge of collapse. And just 2 
weeks ago the United States Enrichment Corporation, the privatized 
corporation, announced that they were closing one of our two enrichment 
facilities, the one in my district in Piketon, Ohio; and within a year 
some 1,800 to 2,000 workers will lose their jobs.
  How did this disaster happen? Why are we on the verge of having to 
depend upon foreign sources for perhaps 20 percent of our Nation's 
electricity?
  I have in my hand a waiver letter that was written by the chairman of 
the Public Board, Mr. William Rainer; and in this letter he is 
addressing the CEO of the Public Board, who is now the CEO of the 
private corporation.
  Mr. Rainer says to Mr. Timbers in this letter: ``As employees of a 
wholly owned government corporation, you may not participate personally 
or substantially in any particular matter that would have a direct and 
predictable effect on your financial interests or those of others, such 
as spouse.''

                              {time}  2145

  However, Mr. Rainer granted Mr. Timbers this waiver, giving him 
permission to advise the board on whether or not USEC should be 
privatized, how it should be privatized, and the selection of the 
individuals to serve on the new privatized board. What is the result? 
Mr. Timbers went from making $350,000 as a government employee and 
after the company was privatized, Mr. Timbers made $2.48 million.
  Mr. Speaker, if that is not substantive, I do not know what is. This 
is a sham and a farce, and this administration and this Congress have 
an obligation to look into these matters. If someone who worked for the 
government made $350,000, and then was given the privilege of making 
decisions which had the benefit of enabling him to enrich himself and 
then a year-and-a-half later ends up with a salary of $2.48 million, 
then there is no sense in us having any prohibition on these kinds of 
government employees being involved in matters that could enrich 
themselves.
  Mr. Speaker, I am asking this House, I am asking this administration 
to come to their senses and to understand that we are facing a looming 
crisis in this country. If this rogue corporation continues without any 
prohibition, we find ourselves perhaps facing the demise of the 
enrichment industry in this country and becoming completely dependent 
on foreign sources for the essential fuel that is necessary to power 
our nuclear plants which provide some 23 percent of all of the 
electricity in this country.
  Mr. Speaker, this is a serious matter. I am appreciative of the time 
I have had to share this with my colleagues and with the country. I 
will include for the Record at this time the letter I referred to 
earlier in my remarks.

                                                         USEC,

                                 Bethesda, MD, September 26, 1995.
     Mr. William H. Timbers, Jr.,
     President and Chief Executive Officer, United States 
         Enrichment Corporation, Bethesda, MD.
       Dear Mr. Timbers: Under 18 U.S.C. Sec. 208(a), USEC 
     employees, as employees of a wholly owned Government 
     corporation, may not participate personally and substantially 
     in any particular matter that would have a direct and 
     predictable effect on their financial interests or those of 
     certain others, such as their spouses. Nevertheless, as 
     Chairman of the Corporation's Board of Directors, under 18 
     U.S.C. Sec. 208(b)(1) I may waive the prohibition of 18 
     U.S.C. Sec. 208(a) where I determine that the employee's 
     financial interest in the matter ``is not so substantial as 
     to be deemed likely to affect the integrity of the services 
     which the Government may expect'' from the employee.
       On September 25, 1995, you provided me with a request for a 
     waiver under section 208(b)(1) to allow you to participate in 
     matters directed toward implementation of the ``Plan for the 
     Privatization of the United States Enrichment Corporation'' 
     (Plan), presented to the President of the United States on 
     June 30, 1995, and effectuation of the Corporation's 
     privatization. Your request stated that such matters would 
     include, but not be limited to, providing advice and 
     recommendations to the Corporation's Board of Directors on 
     the following matters: the method that USEC should utilize in 
     privatizing, e.g., an IPO or an M&A transaction, the timing 
     of a privatization transaction, and whether any such 
     transaction would meet the requirements of section 1502(a) of 
     the Atomic Energy Act of 1954, as amended; the selection of a 
     M&A buyer and the negotiation of a M&A transaction if a buyer 
     is selected; and the selection of individuals to be appointed 
     to serve on the board of the privatized corporation.
       You presently are the President and Chief Executive Officer 
     of USEC. In your position, you are required to implement 
     resolutions adopted and approved by the Board of Directors 
     and to act on directions provided thereby, to abide by the 
     terms of the Atomic Energy Act of 1954, as amended, and of 
     other laws, as each relates to the Corporation, and to carry 
     out your duties as provided by the Corporation's By-laws. One 
     of the primary responsibilities of the Corporation is to 
     effectuate privatization through implementation of the Plan. 
     In your position as President and CEO, you are responsible 
     for overseeing day-to-day implementation, and ensuring the 
     successful realization, of this project. In carrying out your 
     privatization-related duties, including those matters 
     detailed in your waiver request as outlined above, your 
     financial interests in both your current Federal employment 
     and your future employment will be affected. They will be 
     affected by virtue of the privatization of USEC resulting 
     in the termination of your current Federal employment. 
     Moreover, matters relating to privatization also likely 
     will affect your interests in future employment by 
     structuring the possibilities for your employment with the 
     private successor to USEC. In turn, the financial 
     interests of the privatized entity may be imputed to you 
     under the statute if you have an arrangement regarding 
     future employment therewith. These effects on your current 
     and future employment interests give you a disqualifying 
     financial interest in privatization-related matters 
     undertaken by the Corporation.
       Under the terms of section 208(b)(1), disqualifying 
     financial interest may be waived if the ``interest is not so 
     substantial as to be deemed likely to affect the integrity of 
     the services which the Government may expect'' from the 
     employee. In this instance, the particular matter of 
     privatization of the Corporation is not a project proposed by 
     you or another employee of the Corporation. It is a goal that 
     was placed with the Corporation by Congress. Therefore, 
     working to realize that goal is incumbent upon every employee 
     of the Corporation, although each will be personally affected 
     by the outcome. Without such effort by USEC employees, 
     privatization could not be realized. Given the effect that 
     privatization will have on the financial interests of each of 
     the officers of the Corporation, not just your own, it is not 
     feasible to delegate your participation in privatization-
     related matters to a subordinate officer qualified to perform 
     such tasks. However, the openness of the privatization 
     process to the scrutiny of the USEC Board of Directors, the 
     U.S. Treasury as the sole shareholder of the Corporation, and 
     officials of the other Federal agencies will provide 
     additional assurance as to the integrity of the services 
     provided by each USEDC employee participating in the 
     privatization process.
       Given these factors, and the scope of this waiver as 
     delineated herein, I do not find your disqualifying financial 
     interests to be so substantial as to be deemed likely to 
     affect the integrity of your services to the Government.
       Pursuant to the foregoing analysis, I hereby grant a waiver 
     of 18 U.S.C. Sec. 208(a) with regard to your participation in 
     matters that would affect your financial interests, and those 
     imputed to you, as previously described in this memorandum. 
     Those financial interests, in light of the requirements 
     imposed upon the Corporation by the Act and the Plan, are not 
     so substantial as to be deemed likely to affect the integrity 
     of your services in these matters.
       The scope of this waiver extends to those matters, within 
     your scope of authority and responsibility as President and 
     Chief Executive Officer of USEC, directed toward 
     implementation of the Plan and effectuation of the 
     privatization. This waiver, however, does not extend to; (i) 
     matters involving the determination of the terms and 
     conditions of the counterpart position in the privatized 
     corporation to that which you currently hold; or (ii) matters 
     involving the determination of whether the person holding 
     such position should be selected as a candidate for the board 
     of directors of the privatized corporation.
       As the Corporation's privatization efforts proceed, 
     financial interests that conflict with your required duties, 
     that were not anticipated at the time this waiver was issued, 
     could arise. If at any time you have questions regarding the 
     scope of this waiver, you

[[Page H5727]]

     should seek guidance from the General Counsel. The USEC 
     General Counsel, on my behalf, has consulted with the Office 
     of Government Ethics on this waiver and will provide them a 
     copy of it.
           Sincerely,
                                                William J. Rainer,
     Chairman, Board of Directors.

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