December 15, 2015

S.C. Wants $1M a Day for Missed MOX Deadline

By ExchangeMonitor
The state of South Carolina threatened to sue the federal government if the Department of Energy doesn’t pay $1 million a day to the state for missing a key deadline at the Savannah River Site’s Mixed Oxide Fuel Fabrication Facility (MFFF). The facility is a critical part of the nation’s MOX project, which the U.S. would use to meet its commitment in a deal with Russia to dispose of 34 metric tons amount of weapon-usable plutonium.
 
Under a 2003 agreement with the state, DOE promised by Jan. 1, 2016, to process either 1 metric ton of the plutonium through the MFFF or remove 1 ton from the state so that South Carolina is not left housing unwanted plutonium. However, the MOX facility is far from completion. Contractor CB&I AREVA MOX Services says the facility is about 70 percent complete, while DOE maintains it is only about 40 percent finished. Meanwhile, DOE has voiced no plans to remove a ton of the plutonium by Jan. 1.
 
The expected breach pushed Gov. Nikki Haley to send a Dec. 14 letter to Energy Secretary Ernest Moniz in which she announced her intent to impose the fines. DOE would need to pay $1 million a day with an annual cap of $100 million a year. "South Carolina cannot stand idly by while DOE violates federal laws and fails to fulfill its commitment to the State," Haley wrote. If DOE refuses to pay, Haley said South Carolina will "almost certainly" pursue litigation.
 
The Department of Energy did not state whether it would pay the fine. Spokeswoman Francie Israeli briefly stated that DOE is working to meet its commitment to South Carolina.

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