[Senate Report 104-301]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 476
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-301
_______________________________________________________________________


 
  EXTENSION OF THE URANIUM MILL TAILINGS RADIATION CONTROL ACT OF 1978

                                _______
                                

                 June 27, 1996.--Ordered to be printed

_______________________________________________________________________


  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 2967]

    The Committee on Energy and Natural Resources, to which was 
referred the Act (H.R. 2967) to extend the authorization of the 
Uranium Mill Tailings Radiation Control Act of 1978, and for 
other purposes, having considered the same, reports favorably 
thereon without amendment and recommends that the Act do pass.

                         Purpose of the Measure

    The purpose of H.R. 2967 is to reauthorize the Uranium Mill 
Tailings Radiation Control Act of 1978 (P.L. 95-604, UMTRCA), 
which authorizes the Department of Energy (DOE) and private 
parties to remediate the radioactive contamination created by 
uranium milling activities. The measure changes the expiration 
date for Title I remediation from the September 30, 1996 to 
September 30, 1998 and makes several statutory changes to 
improve the operation of the program.

                          Background and Need

    The Uranium Mill Tailings Radiation Control Act (P.L. 95-
604) was passed in 1978 to remediate the environmental damage 
created at uranium mill sites. Most of the uranium mill 
tailings were created as a result of Federal Government 
activities to secure supplies of uranium and thorium for 
nuclear weapons during World War II and the Cold War. The 
milling process takes raw uranium ore from a mine site, crushes 
the ore, then separates the higher grade uranium from low-grade 
surrounding rock and other materials. Uranium mill tailings are 
the uneconomical remnants of this separation process. Mill 
tailings are generally sand-like in appearance, and while 
emitting a very low level of radioactivity, comprise high 
volumes of material. The primary contaminant is radium, which 
emits radon gas.
    The original Act provided for the cleanup of 22 inactive 
mill sites, at which nearly all the contamination resulted from 
activities of the Federal Government's atomic energy programs. 
UMTRCA also includes provisions for the Federal Government to 
assist with the cleanup of active mill sites at which uranium 
and thorium mill tailings are ``commingled'', that is, tailings 
have been generated as a result of both commercial (for 
ultimate end use as fuel rods in commercial nuclear reactors) 
and Federal Government use (typically, in U.S. strategic 
defense applications).
    Title I sites are those abandoned and inactive sites at 
which the wastes were generated primarily for Federal 
activities. The cost of remediation at these sites is divided 
between the Federal Government (90 percent) and the affected 
State (10 percent). At Title II sites, the cost is primarily 
borne by the private firm owning the site, with a proportional 
Federal payment for the cost of remediating wastes generated 
for Federal activities. The original Act established 1990 as 
the completion date for all Title I surface activities. Due to 
a significant increase in the volume of tailings to be 
remediated and higher cleanup standards imposed since the 1978 
date, both the Department of Energy's costs and time required 
to complete activities has been lengthened. In 1982, DOE 
estimated rmediation costs would total $1.7 billion. A December 
1995 report by the General Accounting Office (GAO) entitled 
``Uranium Mill Tailings: Cleanup Continues, But Future Costs 
Uncertain'' indicates that the current totals for remediation 
costs will be about $2.3 billion. For Fiscal Year 1996, it is 
anticipated that DOE will spend close to the $66 million 
funding request at Title I sites. For Title II sites, a total 
of $42 million in Federal assistance was appropriated in Fiscal 
Year 1996.
    The current authorization for Title I remediation 
activities expires on September 30, 1996. At present, however, 
cleanup has been completed at only 18 of the 24 Title I sites. 
The Department fully expects that surface-cleanup of all Title 
I sites will be completed by September of 1998. Without the 
extension provided by this Act, the cleanup at the remaining 
sites will not be completed. Still unresolved is the 
disposition of two Title I sites in the State of North Dakota, 
at which the State is not willing to contribute its 10 percent 
share of cleanup costs. At this point, DOE does not plan to 
remediate these sites.
    There are also a number of outstanding issues surrounding 
the future operation of the program. The Environmental 
Protection Agency (EPA) only released the groundwater 
remediation standards for Title I sites in January of 1995. As 
a result, DOE has only recently begun to implement groundwater 
remediation at Title I sites, the total cost of which will be 
at least $147 million. There are also a handful of Title I 
sites at which tailings were left in place under the EPA's 
supplemental standards for remediation. The supplemental 
standards allow for the waiver of environmental cleanup 
standards in certain circumstances, including those which would 
directly produce environmental harm in excess of the resulting 
health benefits or which have unreasonably high costs relative 
to the benefits in the event that the tailings do not pose a 
clear present or future hazard. At the Grand Junction, Colorado 
site, for example, while over 2 million cubic yards of tailings 
were remediated, over 1 million cubic yards of material were 
left in place under the supplemental standards. The majority of 
the remaining tailings have been used as fill material in road 
beds and along utility corridors, where their risk to human 
health is minimized. However, these tailings will certainly be 
disturbed during future excavations for road or utility 
repairs. At that point, it may be prudent to dispose of these 
materials as required under the statute. At present, however, 
DOE believes it does not have the authority to re-open disposal 
cells to accept such wastes in the future.

                          Legislative History

    On February 2, 1995, Senator Brown introduced S. 341, a 
bill to extend the authorization of the Uranium Mill Tailings 
Radiation Control Act of 1978, and for other purposes. This 
bill was referred to the Committee on Energy and Natural 
Resources. Senator Campbell was added as a cosponsor on June 4, 
1996.
    On February 23, 1996, H.R. 2967 was introduced by 
Representative Schaefer in the House of Representatives, and 
referred to the House Committee on Commerce. The Subcommittee 
on Energy and Power held a hearing on H.R. 2967 on February 28, 
1996. The Subcommittee approved the bill with an amendment on 
March 5, 1996 the Full Committee approved it, as amended, on 
March 13, 1996. On April 24, 1996 the measure was reported to 
the House with a written report (H. Rept. 104-536). The House 
passed the bill, as amended, on May 14, 1996.
    H.R. 2967 was received in the Senate and read twice and 
referred to the Committee on Energy and Natural Resources on 
May 15, 1996. The measure was considered and ordered reported 
without amendment during a Committee business meeting on June 
19, 1996.

            Committee Recommendation and Tabulation of Votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on June 19, 1996, by unanimous vote of a 
quorum present recommends that the Senate pass H.R. 2967 
without amendment.

                      Section-by-Section Analysis

Section 1. Reference

    This section states that references in the legislation are 
to be considered references to the Uranium Mill Tailings 
Radiation Control Act of 1978 (P.L. 95-604), except for the 
reference in Section 3.

Section 2. Termination, authorization

    This section amends the current authorization language in 
two instances. First, it extends the remedial action authority 
for the Department of Energy (DOE) from September 30, 1996 to 
September 30, 1998. Second, it authorizes DOE to continue the 
operation of a disposal cell at the Grand Junction Title I site 
for the continued acceptance of tailings from Title I sites.
    DOE's Grand Junction site was initially contaminated with 
approximately three million cubic yards of mill tailings. The 
Department has completed remediation of two million cubic 
yards. The remaining tails have been utilized primarily as 
roadbed material or as fill in utility corridors, where it 
poses a low health risk. However, as these tailings are 
disturbed in the future, provision for disposal must be 
accommodated. Authorization for post-1998 utilization of the 
Cheney disposal cell, one of the Grand Junction site disposal 
cells which has not yet reached its capacity, will allow the 
Department to continue its remediation of these and other Title 
I tailings without the need for immediate removal of the 
remaining tailings. Additionally, the language authorizes DOE 
to utilize the Cheney cell for disposal of tailings from its 
Monticello, Utah site.

Section 3. Remedial action at active processing sites

    This section amends portions of the Energy Policy Act of 
1992 (P.L. 102-4986) which provide for the reimbursement of the 
Federal Government's share of Title II remediation costs. Since 
the passage of the Energy Policy Act, it has become apparent 
that the reimbursement levels provided in that statute will be 
insufficient to compensate many Title II site owners for the 
cost of the Federal portion of site remediation. As a result, 
the legislation increases the maximum allowable reimbursement 
per dry short ton of mill tailings from $5.50 to $6.25. Even 
this increased rate will not sufficient to fully reimburse the 
costs of remediation at some active mining sites, as the cost 
of remediation varies widely due to various environmental 
factors. However, some Title II sites have been remediated for 
less than a $6.25 per ton cost, and it is expected that DOE 
will not reimburse Title II site owners for more than the 
licensee's average per-ton cost of remediating tailings at such 
sites. Section 3 also increases the overall authorization 
levels for such reimbursement from $270 million to $350 million 
for active site uranium licensees and form $40 million to $65 
million for thorium licensees. The combined effect increases 
the overall program authorization from $310 million to $415 
million.

Section 4. Remedial action for the disposal of radioactive materials

    This section authorizes DOE to eliminate the deed 
annotation requirement for vicinity properties if the Secretary 
determines that the affected State has programs in place which 
will adequately accomplish the notification of prospective 
purchasers of affected properties.

                   Cost and Budgetary Considerations

    The following estimate of costs has been provided by the 
Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 26, 1996.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2967, an act to 
extend the authorization of the Uranium Mill Tailings Radiation 
Control Act of 1978, and for other purposes.
    Enactment of H.R. 2967 would not affect direct spending or 
receipts. Therefore, pay-as-you-go procedures would not apply 
to the legislation.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                         June E. O'Neill, Director.

               congressional budget office cost estimate

    1. Bill number: H.R. 2967.
    2. Bill title: An act to extend the authorization of the 
Uranium Mill Tailings Radiation Control Act of 1978, and for 
other purposes.
    3. Bill status: As ordered reported by the Senate Committee 
on Energy and Natural Resources on June 19, 1996.
    4. Bill purpose: The Uranium Mill Tailings Radiation 
Control Act (UMTRCA) authorizes the Department of Energy (DOE) 
to undertake remedial cleanup actions at inactive uranium 
millings sites across the country. In addition, UMTRCAA 
authorizes DOE to reimburse private operators of active uranium 
or thorium processing sites for a portion of the costs to 
decontaminate, docommission, and reclaim such sites. The amount 
of reimbursement is tied to the amount of mill tailings at each 
site attributable to the sale of nuclear materials to the 
federal government.
    H.R. 2967 would increase the authorization of 
appropriations for remedial actions at active uranium and 
thorium processing sites from $310 million to $415 million. The 
legislation would also change the formula used to calculate 
reimbursements due to eligible operators of uranium and thorium 
processing sites. Section 3 would increase the ceiling on such 
reimbursements from $5.50 per ton of mill tailings to $6.25 per 
ton. Hence, H.R. 2976 could increase the reimbursement payments 
to some operators of active sites.
    H.R. 2967 also would extend the authorization to continue 
remediation activities at inactive processing sites through 
1998.
    5. Estimated cost to the Federal Government: H.R. 2967 
would increase the authorization of appropriations for 
reimbursing eligible parties for conducting remedial actions at 
active uranium and thorium processing sites from $310 million 
to $415 million. Since the program's inception in 1994, the 
Congress has appropriated about $42 million annually for this 
activity. CBO estimates that continuing to fund the program at 
this level would be sufficient to meet the claims for 
reimbursements from eligible parties over the next several 
years. CBO also estimates that extending the authorization to 
continue remediation activities at inactive processing sites 
would cost $69 million over the 1997-2000 period, assuming 
appropriations of $43 million in 1997 and $26 million in 1998. 
As shown in the following table, we estimate spending totaling 
$412 million over the 1996-2000 period for the combination of 
active and inactive sites. Of this amount, $69 million would be 
attributable to the authorizations in this legislation. 
Additional amounts would be spent after 2000 for reimbursing 
the costs of cleanup at active sites.

----------------------------------------------------------------------------------------------------------------
                                                                  1996      1997      1998      1999      2000  
----------------------------------------------------------------------------------------------------------------
Spending under current law:                                                                                     
    Estimated authorization level\1\..........................       108        42        42        42        42
    Estimated outlays.........................................       121        83        55        42        42
Proposed changes:                                                                                               
    Estimated authorization level.............................  ........        43        26  ........  ........
    Estimated outlays.........................................  ........        19        27        18         5
Estimated spending under H.R. 2967:                                                                             
    Estimated authorization level\1\..........................       108        85        68        42        42
    Estimated outlays.........................................       121       102        82        60        47
----------------------------------------------------------------------------------------------------------------
\1\ The 1996 level is the amount appropriated for that year.                                                    

    The costs of H.R. 2967 fall within budget function 270.
    6. Basis of estimate: For purposes of this estimate, we 
assume that of the amounts authorized, sufficient sums will be 
appropriated over the 1997-2000 period to reimburse eligible 
parties. In order to be eligible for reimbursement under 
UMTRCA, site operators must have incurred cleanup costs before 
December 31, 2002, or have placed cleanup funds in escrow prior 
to that date. Based on information from the Department of 
Energy, we estimate that continued funding of this program at 
its current level of $42 million annually would be sufficient 
to meet anticipated claims for active processing sites. If 
appropriations were to continue at the $42 million annual 
level, as shown in the table above, the existing program 
authorization of $310 million would not be exceeded until 2001.
    Under current law, remediation activities at inactive 
uranium processing sites are authorized only until the end of 
1996. Based on information from the Department of Energy, we 
estimate that the surface remediation program could be 
completed with two additional years of appropriations, as 
authorized by H.R. 2967.
    7. Pay-as-you-go considerations: None.
    8. Estimated impact on State, local, and tribal 
governments: The act contains no intergovernmental mandates as 
defined in Public Law 104-4 and would not impose direct costs 
on state, local, or tribal governments. The act would extend 
the authorization of UMTRCA, which authorizes DOE to undertake 
remedial cleanup actions at 24 inactive uranium millings sites, 
mostly in Western states. Under current law, DOE's authority to 
perform cleanup actions other than groundwater restoration at 
these sites will expire on September 30, 1996.
    In order to perform a remedial action at an inactive site, 
DOE is required to enter into a cooperative agreement with the 
state in which the site is located. By law, each agreement must 
contain the requirement that the state pay 10 percent of the 
cost of the remedial action. DOE estimates that states that 
choose to participate will pay about $4 million over fiscal 
years 1997 through 2000, at which time surface remediation 
should be completed.
    9. Estimated impact on the private sector: H.R. 2967 would 
impose no new private-sector mandates as defined in Public Law 
104-4.
    10. Previous CBO estimate: On April 5, 1996, CBO prepared a 
cost estimate for H.R. 2967 as ordered reported by the House 
Committee on Commerce on March 13, 1996. The two versions of 
H.R. 2967 are identical, as are the estimated costs.
    11. Estimate prepared by: Federal cost estimate: Kim 
Cawley; State and Local government impact: Pepper Santalucia; 
Private-sector impact: Jean Wooster.
    12. Estimate approved by: Robert A. Sunshine, for Paul N. 
Van de Water, Assistant Director for Budget Analysis.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out H.R. 2697. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses. The bill extends the authorization for an 
ongoing Federal cleanup program conducted by the DOE and 
provides additional compensation to businesses of the cost of 
the Federal portion of site remediation.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any additional paperwork would result from the 
enactment of H.R. 2967.

                        Executive Communications

    The Committee on Energy and Natural Resources received no 
formal legislative reports from the DOE or other Executive 
agency. If any executive communications become available, the 
Chairman will request that they be printed in the Congressional 
Record for the advice of the Senate.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill H.R. 2967, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

          Uranium Mill Tailings Radiation Control Act of 1978

          * * * * * * *

                    TITLE I--REMEDIAL ACTION PROGRAM

          * * * * * * *

           acquisition and disposition of lands and materials

          * * * * * * *
    Sec. 104. (d) In the case of each processing site 
designated under this title other than a site designated on 
Indian land, the State shall take such action as may be 
necessary, and pursuant to regulations of the Secretary under 
this subsection, to assure that any person who purchases such a 
processing site after the removal of radioactive materials from 
such site shall be notified in an appropriate manner prior to 
such purchase, of the nature and extent of residual radioactive 
materials removed from the site, including notice of the date 
when such action took place, and the condition of such site 
after such action. If the State is the owner of such site, the 
State shall so notify any prospective purchaser before entering 
into a contract, option, or other arrangement to sell or 
otherwise dispose of such site. The Secretary shall issue 
appropriate rules and regulations to require notice in the 
local land records of the residual radioactive materials which 
were located at any processing site and notice of the nature 
and extent of residual radioactive materials removed from the 
site, including notice of the date when such action took place. 
For purposes of this subsection, the term ``site'' does not 
include any property described in section 101(6)(B) which is in 
a State which the Secretary has certified has a program which 
would achieve the purposes of this subsection.
          * * * * * * *

                            remedial action

    Sec. 108. (a)(1) The Secretary or such person as he may 
designate shall select and perform remedial actions at 
designated processing sites and disposal sites in accordance 
with the general standards prescribed by the Administrator 
pursuant to section 275 a. of the Atomic Energy Act of 1954. 
The State shall participate fully in the selection and 
performance of a remedial action for which it pays part of the 
cost. Such remedial action shall be selected and performed with 
the concurrence of the Commission and in consultation, as 
appropriate, with the Indian tribe and the Secretary of the 
Interior. Residual radioactive material from a processing site 
designated under this title may be disposed of at a facility 
licensed under title II under the administrative and technical 
requirements of such title. Disposal of such material at such a 
site in accordance with such requirements shall be considered 
to have been done in accordance with the administrative and 
technical requirements of this title.
          * * * * * * *

                       termination; authorization

    Sec. 112. [(a) The authority of the Secretary to perform 
remedial action under this title shall terminate on September 
30, 1996, except that the authority of the Secretary to perform 
groundwater restoration activities under this title is without 
limitation.]
    (a)(1) The authority of the Secretary to perform remedial 
action under this title shall terminate on September 30, 1998, 
except that--
          (A) the authority of the Secretary to perform 
        groundwater restoration activities under this title is 
        without limitation, and
          (B) the Secretary may continue operation of this 
        disposal site in Mesa County, Colorado (known as the 
        Cheney disposal cell) for receiving and disposing of 
        residual radioactive material from processing sites and 
        of byproduct material from property in the vicinity of 
        the uranium milling site located in Monticello, Utah, 
        until the Cheney disposal cell has been filled to the 
        capacity for which it was designed, or September 30, 
        2023, whichever comes first.
    (2) For purposes of this subsection, the term ``byproduct 
material'' has the meaning given that term in section lle.(2) 
of the Atomic Energy Act of 1954 (42 U.S.C. 2014(e)(2)).
          * * * * * * *

            active operations; liability for remedial action

    Sec. 115. (a) No amount may be expended under this title 
with respect to any site licensed by the Commission under the 
Atomic Energy Act of 1954 or by a State as permitted under 
section 274 of such Act at which production of any uranium 
product from ores (other than from residual radioactive 
materials) takes place. This subsection does not prohibit the 
disposal of residual radioactive material from a processing 
site under this title at a site licensed under title II or the 
expenditure of funds under this title for such disposal.
          * * * * * * *
                              ----------                              


                     The Energy Policy Act of 1992

          * * * * * * *

          TITLE X--REMEDIAL ACTION AND URANIUM REVITALIZATION

         Subtitle A--Remedial Action at Active Processing Sites

          * * * * * * *

SEC. 1001. REMEDIAL ACTION PROGRAM.

          * * * * * * *
    (b) Reimbursement.--
          * * * * * * *
          (2) Amount.--
                  (A) To individual active site uranium 
                licensees.--The amount of reimbursement paid to 
                any licensee under paragraph (1) shall be 
                determined by the Secretary in accordance with 
                regulations issued pursuant to section 1002 
                and, for uranium mill tailings only, shall not 
                exceed an amount equal to [$5.50] $6.25 
                multiplied by the dry short tons of byproduct 
                material located on the date of the enactment 
                of this Act at the site of the activities of 
                such licensee described in subsection (a), and 
                generated as an incident of sales to the United 
                States.
                  (B) To all active site uranium licensees.--
                Payments made under paragraph (1) to active 
                site uranium licensees shall not in the 
                aggregate exceed [$270,000,000] $350,000,000.
                  (C) To thorium licensees.--Payments made 
                under paragraph (1) to the licensee of the 
                active thorium site shall not exceed 
                [$40,000,000] $65,000,000, and may only be made 
                for off-site disposal.
                  (D) Inflation escalation index.--The amounts 
                in subparagraphs (A), (B), and (C) of this 
                paragraph shall be increased annually based 
                upon an inflation index. The Secretary shall 
                determine the appropriate index to apply.
                  (E) Additional reimbursement.--
                          (i) Determination of excess.--The 
                        Secretary shall determine as of July 
                        31, 2005, whether the amount authorized 
                        to be appropriated pursuant to section 
                        1003, when considered with the [$5.50] 
                        $6.25 per dry short ton limit on 
                        reimbursement, exceeds the amount 
                        reimbursable to the licensees under 
                        subsection (b)(2).
                          (ii) In the event of excess.--If the 
                        Secretary determines under clause (i) 
                        that there is an excess, the Secretary 
                        may allow reimbursement in excess of 
                        [$5.50] $6.25 per dry short ton on a 
                        prorated basis at such sites where the 
                        costs reimbursable under subsection 
                        (b)(1) exceed the $5.50 per dry short 
                        ton limitation described in paragraph 
                        (2) of such subsection.
          * * * * * * *

SEC. 1003. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated 
[$310,000,000] $415,000,000 to carry out this subtitle. The 
aggregate amount authorized in the preceding sentence shall be 
increased annually as provided in section 1001, based upon an 
inflation index to be determined by the Secretary.
          * * * * * * *