[House Report 107-341]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-341

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



 
                         THORIUM REIMBURSEMENT

                                _______
                                

 December 18, 2001.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Tauzin, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3343]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 3343) to amend title X of the Energy Policy Act 
of 1992, and for other purposes, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     1
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     3
Hearings.........................................................     4
Committee Consideration..........................................     4
Committee Votes..................................................     4
Committee Oversight Findings.....................................     4
Statement of General Performance Goals and Objectives............     4
New Budget Authority, Entitlement Authority, and Tax Expenditures     4
Committee Cost Estimate..........................................     4
Congressional Budget Office Estimate.............................     4
Federal Mandates Statement.......................................     6
Advisory Committee Statement.....................................     6
Constitutional Authority Statement...............................     6
Applicability to Legislative Branch..............................     6
Section-by-Section Analysis of the Legislation...................     6
Changes in Existing Law Made by the Bill, as Reported............     7

                               Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. REAUTHORIZATION OF THORIUM REIMBURSEMENT.

  (a) Payments to Licensees.--Section 1001(b)(2)(C) of the Energy 
Policy Act of 1992 (42 U.S.C. 2296a(b)(2)(C)) is amended--
          (1) by striking ``$140,000,000'' and inserting 
        ``$365,000,000''; and
          (2) by adding at the end the following: ``Such payments shall 
        not exceed the following amounts:
                          ``(i) $90,000,000 in fiscal year 2002.
                          ``(ii) $55,000,000 in fiscal year 2003.
                          ``(iii) $20,000,000 in fiscal year 2004.
                          ``(iv) $20,000,000 in fiscal year 2005.
                          ``(v) $20,000,000 in fiscal year 2006.
                          ``(vi) $20,000,000 in fiscal year 2007.
                Any amounts authorized to be paid in a fiscal year 
                under this subparagraph that are not paid in that 
                fiscal year may be paid in subsequent fiscal years.''.
  (b) Authorization.--Section 1003(a) of such Act (42 U.S.C. 2296a-
2(a)) is amended by striking ``$490,000,000'' and inserting 
``$715,000,000''.
  (c) Deposits.--Section 1802(a) of the Atomic Energy Act of 1954 (42 
U.S.C. 2297g-1(a)) is amended by striking ``$488,333,333'' and 
inserting ``$518,233,333'' and by inserting after ``inflation'' the 
phrase ``beginning on the date of the enactment of the Energy Policy 
Act of 1992''.
  (d) Portsmouth.--(1) Chapter 19 of the Atomic Energy Act of 1954 (42 
U.S.C. 2015 and following) is amended by inserting the following after 
section 241:

``SEC. 242. COLD STANDBY.

  ``The Secretary is authorized to expend such funds as may be 
necessary for the purposes of maintaining enrichment capability at the 
Portsmouth, Ohio, facility.''.
  (2) The table of contents for such chapter is amended by inserting 
the following new item after the item relating to section 241:

``Sec. 242. Cold standby.''.

SEC. 2. COMPTROLLER GENERAL AUDIT.

  The Comptroller General shall conduct an audit on the Uranium 
Enrichment Decontamination and Decommissioning Fund established under 
section 1801 of the Atomic Energy Act of 1954 (42 U.S.C. 2297g). Not 
later than March 1, 2003, the Comptroller General shall transmit to the 
Congress a report on the results of the audit. Such report shall assess 
whether the Fund as currently authorized will be of sufficient size and 
duration for carrying out decontamination and decommissioning and 
remedial action activities anticipated to be paid for from the fund, 
and shall include recommendations for minimizing increases in such 
activities. In conducting the audit, the Comptroller General shall 
specifically address whether the deposits collected under sections 
1802(c) and 1802(d) of the Atomic Energy Act of 1954 (42 U.S.C. 2297g-
1(c) and 2297g-1(d)) are sufficient to--
          (1) pay for decontamination and decommissioning activities 
        pursuant to section 1803(b) of the Atomic Energy Act of 1954 
        (42 U.S.C. 2297g-2(b));
          (2) pay for the remedial action costs pursuant to section 
        1803(c) of such Act (42 U.S.C. 2297g-2(c)); and
          (3) pay for the remedial action costs pursuant to section 
        1001(b)(2)(C) and (D) of the Energy Policy Act of 1992 (42 
        U.S.C. 2296a(b)(2)(C) and (D)).

                          Purpose and Summary

    The purpose of H.R. 3343 is to increase by $225 million the 
authorization level for the thorium reimbursement program 
established pursuant to Title X of the Energy Policy Act of 
1992. The bill also increases deposits to the Uranium 
Enrichment Decontamination and Decommissioning Fund by the same 
amount, after adjustments for inflation. In addition, the bill 
authorizes appropriations for the Secretary of Energy to 
maintain the uranium enrichment facility at Portsmouth, Ohio on 
cold standby. Finally, the bill requires the Comptroller 
General to conduct an audit of the Uranium Enrichment 
Decontamination and Decommissioning Fund and the programs paid 
for by the fund, with regard to future costs and needs.

                  Background and Need for Legislation

    Title X, Subtitle A of the Energy Policy Act of 1992 
(EPAct) authorizes the Department of Energy (DOE) to use the 
Uranium Enrichment Decontamination and Decommissioning Fund 
(D&D Fund) established in Chapter 28 of the Atomic Energy Act 
of 1954 to reimburse thorium processing site licensees for a 
portion of the cost of environmental cleanup. There is only one 
thorium-contaminated site which is owned by Kerr-McGee Chemical 
Corporation (Kerr-McGee), and it is located in West Chicago, 
Illinois.
    Section 1001 of EPAct establishes the responsibility of 
licensees for bearing the costs of decontamination, 
decommissioning, reclamation and other remedial action at 
active uranium and thorium sites where byproduct material has 
been produced. However, the section also requires the Secretary 
of Energy to reimburse annually a licensee for that portion of 
the remedial cost the Secretary has determined is attributable 
to byproduct material generated as the result of sales to the 
federal government. In the case of the West Chicago site, DOE 
has determined that 55.2% of the remedial cost is attributable 
to government contracts. As such, Kerr-McGee manages the 
cleanup, incurs cleanup costs at West Chicago at its own 
expense, and submits claims for reimbursement of 55.2% of its 
incurred costs. DOE reimburses claims submitted by Kerr-McGee 
after the Department reviews the company's claims.
    As enacted, EPAct authorized the Secretary to make 
reimbursement payments to thorium licensees of not more than 
$40 million. Public Law 104-259 increased the authorization to 
$65 million, while Public Law 105-388 increased it to $140 
million. Congress increased the cap on federal contributions as 
cleanup activities have proceeded at the site and resulted in 
corresponding additional submissions of receipts for 
reimbursement.
    At the end of 2000, Kerr-McGee had incurred cleanup costs 
totaling $375 million, of which $207 million is potentially 
eligible for Federal reimbursement. DOE has reimbursed only 
$146 million of this amount, and has no authority to provide 
additional reimbursements due to the current authorization cap 
of $140 million (the additional $6 million is related to 
authorized inflation adjustments). Thus, there is currently a 
$61 million shortfall in reimbursement for cleanup costs 
incurred through 2000.
    Kerr-McGee currently projects that it will incur an 
additional $298 million in additional cleanup costs to complete 
the project. Of this amount, the potential amount eligible for 
reimbursement by the Secretary is projected to be an additional 
$164 million, bringing the total Federal contribution to $371 
million ($146 million paid to date, plus $61 million in un-
reimbursed claims, plus $164 million in projected future 
claims).
    H.R. 3343 would increase the authorization in Section 
1001(b)(2)(C) of EPAct to cover the full potential remaining 
Federal contribution to the thorium cleanup. The bill would 
also increase the annual cap on deposits to the D&D Fund by the 
same amount, after adjustments for inflation, to cover the 
costs of the thorium program, in order to assure that 
sufficient funds are available for cleaning up the Portsmouth 
and Paducah Gaseous Diffusion Plants, which are also paid for 
out of the D&D Fund.

                                Hearings

    The Committee on Energy and Commerce has not held hearings 
on the legislation.

                        Committee Consideration

    On Wednesday, December 12, 2001, the Full Committee met in 
open markup session and ordered H.R. 3343 favorably reported to 
the House, as amended, by a voice vote, a quorum being present.

                            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. 3343 reported. A motion by Mr. Tauzin to order H.R. 3343 
reported to the House, as amended, was agreed to by a voice 
vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has not held oversight 
or legislative hearings on this legislation.

         Statement of General Performance Goals and Objectives

    The goal of H.R. 3343 is to increase the authorization to 
cover the Federal cost-share for the cleanup of the thorium 
contaminated site in West Chicago owned by the Kerr-McGee 
Corporation.

   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. 
3343, a bill to amend title X of the Energy Policy Act of 1992, 
and for other purposes, 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 Estiamte

    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, December 18, 2001.
Hon. W.J. ``Billy'' Tauzin,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3343, a bill to 
amend title X of the Energy Policy Act and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Lisa Cash 
Driskill.
            Sincerely,
                                         Barry B. Anderson,
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 3343--A bill to amend title X of the Energy Policy Act and for 
        other purposes

    Summary: H.R. 3343 would authorize the appropriation of 
$225 million over the 2002-2007 period for payments to private 
contractors for remediation work at a thorium processing plant 
that supplied nuclear material to the federal government. 
Assuming appropriation of the authorized amounts, CBO estimates 
that implementing the bill would cost $195 million over the 
2002-2006 period, with the remaining $30 million spent after 
2006.
    The bill also would authorize the appropriation of such 
sums as may be necessary for maintaining the uranium enrichment 
capability of the Portsmouth Gaseous Diffusion Plant in 2002. 
The Department of Energy (DOE) currently has the authority for 
such activities under the Atomic Energy Act and plans to spend 
about $65 million in 2002 to maintain the enrichment capability 
at the Portsmouth facility. Therefore, this provision of the 
bill would not add to costs that could be incurred under 
current law. The bill also would require the Comptroller 
General to provide an audit of the Uranium Decontamination and 
Decommission Fund and report to the Congress. CBO estimates 
that this work would have a negligible effect of federal 
spending.
    H.R. 3343 would not affect direct spending or receipts; 
therefore, pay-as-you-go procedures would not apply. The bill 
contains no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act (UMRA) and would 
impose no costs on state, local, or tribal governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3343 is shown in the following table. 
The costs of this legislation fall within budget function 270 
(energy).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2002     2003     2004     2005     2006
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated authorization level......................................       90       55       20       20       20
Estimated outlays..................................................       45       73       38       20       20
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that H.R. 
3343 will be enacted in January 2002 and that all amounts 
authorized will be appropriated in each year, as specified by 
the bill. Outlays were estimated using historical spending 
patterns for the decontamination program.
    The bill would increase the amount authorized to pay a 
private contractor for decontamination of a thorium processing 
plant in West Chicago, Illinois, that formerly provided nuclear 
material to the federal government. Based on information from 
DOE, the additional funds that would be authorized by this bill 
would be spent over the next several years. Thus, CBO estimates 
that, implementing the bill would cost $195 million over the 
2002-2006 period and $225 million over the 2002-2011 period.
    Pay-as-you-go considerations: None.
    Intergovernmental and private sector impact: H.R. 3343 
contains no intergovernmental or private-sector mandates as 
defined by UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal costs: Lisa Cash Driskill; 
impact on State, local, and tribal governments: Elyse Goldman; 
impact on the private sector: Lauren Marks.
    Estimate 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


Section 1. Reauthorization of thorium reimbursement

    Section 1(a) amends Title X of the Energy Policy Act of 
1992 to increase the authorization for payments to thorium 
licensees by $225 million, from its current level of $140 
million to $365 million. The general authorization level in 
Title X is also increased by $225 million in section 1(b) to 
match the increase in section 1(a). The new additional 
authority is subject to annual limits effectively requiring the 
new authority to be amortized over a six-year period beginning 
in fiscal year 2002. The Committee has included these specific 
annual limits in an effort to help avoid the potential for 
competition with other cleanup activities paid for from the D&D 
Fund. Payments to the thorium licensee shall not exceed the 
authorized amount in any year; however, any amounts authorized 
to be paid in a fiscal year that are not paid in that year may 
carry over and be paid in subsequent fiscal years.
    Section 1(c) amends Section 1802(a) of the Atomic Energy 
Act to increase the required D&D Fund deposits by $29.9 million 
per year which is equal to the $225 million increase in the 
thorium reimbursement after adjusting the amount to reflect 
1992 constant dollars. Thus, the Committee expects there to be 
no adverse impact on the availability of money for other 
projects authorized to be paid for out of the D&D Fund. The 
Committee has not increased the special assessment on domestic 
utilities in Section 1802(c) of the Atomic Energy Act, thereby 
requiring the additional cost of deposits to be paid for by the 
appropriations from general revenues authorized by Section 
1802(d). This section also clarifies that the D&D Fund annual 
deposit amount of $518,233,333--which is in 1992 constant 
dollars--should continue to be adjusted annually for inflation 
using the date of the enactment of the Energy Policy Act of 
1992 as the baseline for inflation adjustments.
    Section 1(d) amends the Atomic Energy Act to authorize 
appropriations to the Secretary of Energy to expend such funds 
as may be necessary for the purpose of keeping the Portsmouth 
Gaseous Diffusion Plant in Portsmouth, Ohio, on cold standby. 
DOE is not provided with any authority to use monies from the 
D&D fund for this purpose. Indeed, the Committee language 
specifically amends Chapter 19 of the Atomic Energy Act rather 
than Chapter 28 in order to avoid the appearance that it is in 
any way affecting the previously authorized uses of the D&D 
Fund.

Section 2. Comptroller General audit

    This section requires the Comptroller General to audit the 
D&D Fund and report its findings to Congress no later than 
March 1, 2003. In reporting to Congress, the Comptroller 
General is to assess whether the Fund will be of sufficient 
size and duration to cover the costs of all the activities 
authorized to be paid for from the fund. The Comptroller 
General should pay particular attention to any factors 
contributing to increased costs, in order to aid in accurately 
projecting the future demands on the fund. The Committee 
expects that this examination will also assist the Comptroller 
General in fulfilling the bill's requirement that he make 
recommendations for curtailing future increases in cleanup 
costs. The legislation also directs the Comptroller General to 
address whether the collections and deposits made pursuant to 
sections 1802(c) and 1802(d) of the Atomic Energy Act are 
providing revenue of sufficient size and duration to cover all 
the costs of the activities that the Atomic Energy Act and 
EPAct require the D&D Fund to support.

         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):

                       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.

  (a) * * *
  (b) Reimbursement.--
          (1) * * *
          (2) Amount.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) To thorium licensees.--Payments made 
                under paragraph (1) to the licensee of the 
                active thorium site shall not exceed 
                [$140,000,000] $365,000,000, and may only be 
                made for off-site disposal. Such payments shall 
                not exceed the following amounts:
                          (i) $90,000,000 in fiscal year 2002.
                          (ii) $55,000,000 in fiscal year 2003.
                          (iii) $20,000,000 in fiscal year 
                        2004.
                          (iv) $20,000,000 in fiscal year 2005.
                          (v) $20,000,000 in fiscal year 2006.
                          (vi) $20,000,000 in fiscal year 2007.
                Any amounts authorized to be paid in a fiscal 
                year under this subparagraph that are not paid 
                in that fiscal year may be paid in subsequent 
                fiscal years.

           *       *       *       *       *       *       *


SEC. 1003. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--There is authorized to be appropriated 
[$490,000,000] $715,000,000 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.

           *       *       *       *       *       *       *

                              ----------                              


                       ATOMIC ENERGY ACT OF 1954

                       ATOMIC ENERGY ACT OF 1954

                           TABLE OF CONTENTS

                         TITLE I--ATOMIC ENERGY

          * * * * * * *

                        Chapter 19. Miscellaneous

Sec. 241. Transfer of Property.
Sec. 242. Cold standby.

           *       *       *       *       *       *       *


                        TITLE I--ATOMIC ENERGY

           *       *       *       *       *       *       *


CHAPTER 19. MISCELLANEOUS

           *       *       *       *       *       *       *


SEC. 242. COLD STANDBY.

  The Secretary is authorized to expend such funds as may be 
necessary for the purposes of maintaining enrichment capability 
at the Portsmouth, Ohio, facility.

           *       *       *       *       *       *       *


             TITLE II--UNITED STATES ENRICHMENT CORPORATION

           *       *       *       *       *       *       *


             CHAPTER 28--DECONTAMINATION AND DECOMMISSIONING

           *       *       *       *       *       *       *


SEC. 1802. DEPOSITS.

  (a) Amount.--The Fund shall consist of deposits in the amount 
of [$488,333,333] $518,233,333 per fiscal year (to be annually 
adjusted for inflation beginning on the date of the enactment 
of the Energy Policy Act of 1992 using the Consumer Price Index 
for all-urban consumers published by the Department of Labor) 
as provided in this section.

           *       *       *       *       *       *       *


                                  
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