Comments on H.R. 2480, The Uranium Enrichment Reorganization Act

T-RCED-91-3: Published: Oct 11, 1990. Publicly Released: Oct 11, 1990.

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GAO discussed proposed legislation that would restructure the Department of Energy's (DOE) uranium enrichment program as a government corporation. GAO noted that: (1) it supported restructuring the program as a government corporation and establishing a decommissioning fund; (2) such legislation should include a specific goal to recover past government costs associated with the program; (3) the costs of cleaning up any new facilities should rest with the new corporation; (4) Congress should set a specific repayment amount consistent with DOE projections of the corporation's expected earnings over the next 10 to 15 years, rather than rely on the receipt of unspecified dividends or on uncertain stock sales; (5) unforeseen licensing problems, environmental and decommissioning costs, and increased competition could inhibit the feasibility of privatization; and (6) the government should pay its share of the cleanup costs associated with the production of uranium under government contracts.

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