[House Report 106-886]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-886

======================================================================



 
                            DATE EXTENSIONS

                                _______
                                

 September 25, 2000.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Bliley, from the Committee on Commerce, submitted the following

                              R E P O R T

                        [To accompany H.R. 2641]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Commerce, to whom was referred the bill 
(H.R. 2641) to make technical corrections to title X of the 
Energy Policy Act of 1992, having considered the same, report 
favorably thereon with amendments and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     1
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     5
Committee Consideration..........................................     5
Committee Votes..................................................     5
Committee Oversight Findings.....................................     5
Committee on Government Reform Oversight Findings................     5
New Budget Authority, Entitlement Authority, and Tax Expenditures     5
Committee Cost Estimate..........................................     6
Congressional Budget Office Estimate.............................     6
Federal Mandates Statement.......................................     7
Advisory Committee Statement.....................................     7
Constitutional Authority Statement...............................     7
Applicability to Legislative Branch..............................     7
Section-by-Section Analysis of the Legislation...................     7
Changes in Existing Law Made by the Bill, as Reported............     7

                               Amendment

  The amendments are as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. DATE EXTENSIONS.

  Section 1001 of the Energy Policy Act of 1992 (42 U.S.C. 2296a) is 
amended--
          (1) in subsection (b)(1)(B)(i), by striking ``2002'' and 
        inserting ``2007'';
          (2) in subsection (b)(1)(B)(ii), by striking ``placed in 
        escrow not later than December 31, 2002,'' and inserting 
        ``incurred by a licensee after December 31, 2007,''; and
          (3) in subsection (b)(2)(E)(i) by striking ``July 31, 2005'' 
        and inserting ``December 31, 2008''.

  Amend the title so as to read:

    A bill to make date extensions.

                          Purpose and Summary

    The purpose of H.R. 2641 is to amend title X of the Energy 
Policy Act of 1992, as amended (P.L. 102-486, 42 U.S.C. 
Sec. 2296a) to extend for another five years the program of 
annual reimbursements from the Department of Energy (DOE) to 
the private sector licensees cleaning up uranium and thorium 
mill tailings sites under the authority of title II of the 
Uranium Mill Tailings Radiation Control Act of 1978 (P.L. 95-
604, 42 U.S.C. Sec. 7901 et seq.). The measure also revises the 
date when the Secretary of Energy determines whether there are 
any excess funds in the program, and eliminates the requirement 
for DOE to place in escrow funds to cover estimated post-2002 
cleanup costs.

                  Background and Need for Legislation

    Uranium and thorium mining and milling operations were 
initiated in the early 1940s to support the Manhattan Project 
to develop the nation's first nuclear weapons. More recent 
mining and millings operations were conducted to meet the needs 
of the Atomic Energy Commission and subsequent national defense 
and commercial nuclear power purposes. Uranium mill tailings 
are the sand-like waste product of the milling process. Mill 
tailings generally emit very low levels of radioactivity, but 
the tailings piles also contain various heavy metals that can 
be a source of groundwater contamination. The primary 
radioactive contaminant is radium, which emits radon gas.
    In 1978, Congress passed the Uranium Mill Tailings 
Radiation Control Act of 1978 (P.L. 95-604, 42 U.S.C. Sec. 7901 
et seq.; UMTRCA). UMTRCA established two categories of mill 
tailings sites. Title I of UMTRCA deals with 22 designated 
inactive uranium processing sites, for which DOE was assigned 
the primary responsibility for cleaning up tailings. The costs 
of cleaning up title I sites are shared 90 percent by the 
Federal government and 10 percent by the affected State. Title 
II of UMTRCA deals with the processing sites that still held 
active licenses in 1978, when UMTRCA became law. The 
responsibility for cleaning up these title II active sites was 
assigned to the private licensees operating these milling 
sites. There was no provision in the original UMTRCA for 
Federal assistance for the active sites where uranium 
processing was conducted for the Federal government and where 
commingled tailings were generated.
    Thorium production generated a much smaller volume of waste 
material, and occurred at only one site--the West Chicago mill 
operated by the Kerr-McGee Corporation. Like uranium, thorium 
was also produced for both government and commercial purposes, 
and the wastes at the West Chicago site are commingled.
    Subsequent to the enactment of UMTRCA, the General 
Accounting Office (GAO) recommended that the Federal government 
should provide financial assistance for the cleanup of the 
active title II processing sites because a portion of the 
tailings at these sites were generated for government purposes. 
Title X of the Energy Policy Act of 1992, as amended (P.L. 102-
486, 42 U.S.C. Sec. 2296a), established a reimbursement program 
in which the DOE pays the Federal government's share of cleanup 
costs to the licensees operating processing sites which were 
active in 1978. DOE determined there were 13 active uranium 
sites (located in six States: Colorado, New Mexico, South 
Dakota, Utah, Washington, and Wyoming) and one active thorium 
site (in Illinois) that qualify for title X reimbursement.
    The 1992 Act specified a limit of $5.50 per dry short ton 
of tailings for uranium cleanup. This limit is adjusted for 
inflation. TheFederal share at the uranium sites ranges from 
11.5 percent to 81.3 percent, with the total federal reimbursement to 
all uranium licensees at the active sites limited to $270 million. 
Reimbursement for thorium cleanup was not limited on a per ton basis, 
but the total reimbursement for the single thorium licensee was limited 
to $40 million, with the restriction that the government share can be 
used only for offsite disposal. The government's share for the single 
thorium processing site is 55.2 percent.
    When title X of the Energy Policy Act of 1992 was enacted, 
it was envisioned that cleanup of most of the title X sites 
would be completed by the year 2002. Therefore, a program was 
established to provide for reimbursement on an annual basis for 
cleanup costs actually incurred through the end of 2002. If 
there is any cleanup work remaining after 2002, the licensees 
are required to prepare plans for post-2002 remediation work. 
DOE is to review and approve those remediation plans and then 
place in escrow sufficient funds to cover estimated post-2002 
cleanup costs in accordance with these approved remediation 
plans. Under title X, the Secretary is required to determine as 
of July 31, 2005, if any excess funds remain within the 
authorized program ceiling for uranium licensees. If the actual 
costs of cleanup exceed the $5.50 per dry short ton cap, the 
Secretary may reimburse such excess costs up to the authorized 
program ceiling. This discretionary distribution of excess 
funds is available only for the uranium licensees.
    In 1996, Congress amended title X of UMTRCA (P.L. 104-259, 
42 U.S.C. Sec. 2296a) by increasing the cap for uranium 
reimbursement from $5.50 per ton to $6.25 per ton, and 
increasing the uranium program ceiling from $270 million to 
$350 million. Also, the cap for thorium reimbursement was 
raised from a total of $40 million to $65 million. In 1998, 
Congress again amended title X again (P.L. 105-388, 42 U.S.C. 
2296a), increasing the ceiling for reimbursement to the thorium 
licensee from $65 million to $140 million.
    The actual cleanup of these uranium and thorium processing 
sites is proving to be more costly and time consuming than 
originally envisioned in title X. As of April 2000, only two of 
the original 14 sites qualifying for title X reimbursement have 
been completed (i.e., the TVA site at Edgewater, South Dakota, 
and the ARCO Bluewater site at Grants, New Mexico). Significant 
work at a majority of sites will continue after 2002. One of 
the primary factors driving these increases is the need for 
extensive groundwater remediation at several of the processing 
sites.
    Under current law, the program of annual reimbursement will 
come to an end in 2002. Prior to the end of 2002, licensees 
will have to prepare remediation plans for post-2002 work, DOE 
will have to review and approve those plans, and then DOE will 
have to place sufficient funds in escrow to cover post-2002 
cleanup costs. With significant cleanup work still ongoing at 
several sites, industry and DOE agree that the program of 
annual reimbursements should be extended for five more years, 
that the date for determination of any program excess should be 
adjusted accordingly, and that the current requirements for 
post-2002 cleanup plans, DOE review of those plans, and 
placement in escrow of estimated post-2002 cleanup funds should 
be eliminated. Additionally, industry argues that the per ton 
cap on uranium cleanup should be revised upward to reflect 
realistic cleanup costs, that the distribution of excess funds 
at the end of the program should be mandatory rather than at 
the Secretary's discretion, and that this distribution should 
include both the uranium and thorium licensees if their actual 
cleanup costs exceed either the per ton caps (for uranium 
licensees) or the program ceilings (for both uranium and 
thorium licensees). DOE is not supportive of the proposed 
change to the per ton cap for uranium, of eliminating the 
Secretary's discretion regarding distribution of excess funds 
at the end of the program, nor of changing the potential 
beneficiaries of such distribution.
    As introduced, H.R. 2641 makes a number of changes to title 
X. It extends the original termination date for annual 
reimbursement payments by another five years, from December 31, 
2002, to December 31, 2007. H.R. 2641 changes the date on which 
the Secretary determines whether any excess funds are available 
from July 31, 2005, to December 31, 2008. H.R. 2641 eliminates 
the requirement for the Secretary of Energy to place funds in 
escrow to cover estimated post-2002 cleanup costs. As 
introduced, H.R. 2641 would also replace the current cap for 
uranium reimbursement of $6.25 per dry short ton with a sliding 
scale, raising to $8.50 per ton in 2002, $9.50 per ton in 2004, 
and $10.00 per ton in 2005. Also, H.R. 2641 as introduced 
changes the limitations that apply to distribution of any 
excess funds by allowing the excess to be disbursed to all 
licensees, including the one thorium site, and by eliminating 
the Secretary'sdiscretion on whether or not to reimburse these 
excess funds to the uranium and thorium licensees.
    In testimony at the April 5, 2000, hearing of the 
Subcommittee on Energy and Power, DOE was supportive of the 
date extensions contained in H.R. 2641 and of eliminating the 
escrow requirement, but not supportive of raising the per ton 
caps for uranium or of removing the Secretary's discretion on 
how to spend any excess funds at the end of the program. In 
addition, several Subcommittee Members raised concerns that 
additional money spent on uranium and thorium cleanup might 
divert funding from the cleanup of the gaseous diffusion plants 
at Portsmouth and Paducah.
    In response to these concerns, the Committee adopted an 
amendment which retained the date extensions in the introduced 
version of H.R. 2641, to extend the program of annual 
reimbursements by five more years, from December 31, 2002, to 
December 31, 2007. It also extends the date for determination 
of any excess funds would be extended from July 31, 2005 to 
December 31, 2008. The existing requirement for DOE to place 
funds in escrow to cover post-2002 cleanup costs is eliminated. 
The Committee amendment makes no changes to the existing 
program caps for uranium and thorium cleanup, no change to the 
existing per ton caps for uranium cleanup, and no change to how 
excess funds may be distributed. The General Counsel of the 
Department of Energy wrote a letter dated July 25, 2000, in 
support of the Committee's amendment.

                                Hearings

    The Subcommittee on Energy and Power held a hearing on H.R. 
2641 on April 5, 2000. The Subcommittee received testimony 
from: Mr. James Fiore of the Department of Energy, Mr. Tom 
McDaniel of the Kerr-McGee Corporation, and Mr. Pat Morgan 
representing the Umetco Minerals Corporation.

                        Committee Consideration

    On September 14, 2000, the Subcommittee on Energy and Power 
was discharged from the further consideration of H.R. 2641. On 
September 14, 2000, the Full Committee met in open markup 
session and approved H.R. 2641 for Full Committee 
consideration, as amended, by a voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. 
There were no record votes taken in connection with ordering 
H.R. 2641 reported. A motion by Mr. Bliley to order H.R. 2641 
reported to the House, with an amendment, was agreed to by a 
voice vote.
    The following amendment was agreed to by a voice vote: An 
amendment in the nature of a substitute by Mr. Largent, No. 1, 
to extend the dates of the uranium and thorium mill tailings 
cleanup program under title X of the Energy Policy Act of 1992.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a legislative 
hearing and made findings that are reflected in this report.

           Committee on Government Reform Oversight Findings

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Reform.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
2641, a bill to make technical corrections to title X of the 
Energy Policy Act of 1992, would result in no new or increased 
budget authority, entitlement authority, or tax expenditures or 
revenues.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of Rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 18, 2000.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2641, a bill to 
made date extensions.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Lisa Cash 
Dirskill.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 2641--A bill to make date extensions

    H.R. 2641 would amend the Energy Policy Act by extending 
the authorization for federal reimbursement of certain 
remediation costs incurred by private operators of active 
uranium and thorium processing sites. The amount of 
reimbursement is tied to the amount of byproduct material at 
each site attributable to the sale of nuclear materials to the 
federal government. CBO estimates that enacting H.R. 2641 would 
have no significant effect on the federal budget. The bill 
contains no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act and would impose no 
costs on state, local, or tribal governments.
    Under current law, private operators can only be reimbursed 
for eligible costs incurred or approved by December 31, 2002. 
H.R. 2641 would extend that date to December 31, 2007. Current 
law also requires that the sum of costs for work approved to be 
undertaken after December 31, 2002, be appropriated into an 
escrow account by that date, for later disbursement as 
reimbursement claims are made. The bill would repeal the 
requirement for an escrow account, instead requiring only that 
costs eligible for reimbursement and expected to be incurred 
after December 31, 2007, be approved by the Department of 
Energy (DOE) prior to that date.
    Reimbursements made to date total $302 million, including 
$72 million appropriated in fiscal year 2000. Based on 
information from DOE, CBO estimates that remediation work 
eligible for reimbursement will occur through 2016 and will 
require additional spending of between $87 million and $115 
million. Because the bill would not affect the timing of any 
remediation work or the spending of amounts to reimburse that 
work. CBO estimates that the bill would have no significant 
additional effect on the federal budget. H.R. 2461 would not 
affect direct spending or receipts; therefore, pay-as-you-go 
procedures would not apply.
    The CBO staff contact for this estimate is Lisa Cash 
Driskill. This estimate was approved by Peter H. Fontaine, 
Deputy Assistant Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

    The legislation consists of only one section, which makes 
changes to section 1001 of the Energy Policy Act of 1992, as 
amended. Under the bill, the program of annual reimbursements 
will be extended five more years, from December 31, 2002, to 
December 31, 2007. Also, the date on which the Secretary of 
Energy must make a determination of any excess funds will be 
extended from July 31, 2005 to December 31, 2008. The existing 
requirement for DOE to place funds in escrow to cover post-2002 
cleanup costs is eliminated. DOE will reimburse cleanup costs 
on an annual basis through the end of 2007. If there are still 
any licensees at that time with post-2007 cleanup costs, those 
licensees will have to submit remediation plans for post-2007 
work. Upon DOE review and approval of those remediation plans, 
if any, DOE will pay the post-2007 costs directly without the 
need for escrow. Any funds remaining at the end of 2008 may 
then be distributed to the uranium licensees, at the 
Secretary's discretion as under existing law.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as 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):

             SECTION 1001 OF THE ENERGY POLICY ACT OF 1992

SEC. 1001. REMEDIAL ACTION PROGRAM.

  (a)  * * *
  (b) Reimbursement.--
          (1) In general.--The Secretary of Energy shall, 
        subject to paragraph (2), reimburse at least annually a 
        licensee described in subsection (a) for such portion 
        of the costs described in such subsection as are--
                  (A)  * * *
                  (B) either--
                          (i) incurred by such licensee not 
                        later than December 31, [2002] 2007; or
                          (ii) [placed in escrow not later than 
                        December 31, 2002,] incurred by a 
                        licensee after December 31, 2007, in 
                        accordance with a plan for subsequent 
                        decontamination, decommissioning, 
                        reclamation, and other remedial action 
                        approved by the Secretary.
          (2) Amount.--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (E) Additional reimbursement.--
                          (i) Determination of excess.--The 
                        Secretary shall determine as of [July 
                        31, 2005] December 31, 2008, whether 
                        the amount authorized to be 
                        appropriated pursuant to section 1003, 
                        when considered with the $5.50 per dry 
                        short ton limit on reimbursement, 
                        exceeds the amount reimbursable to the 
                        licensees under subsection (b)(2).

           *       *       *       *       *       *       *


                                  
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