Sen. Says $1.6M Inactive ‘USEC Fund’ is Gov’t Waste

By Brian Bradley

Brian Bradley
WC Monitor
11/13/2015

Though no initiatives appear to have been started, Sen. Dan Coats (R-Ind.) hopes lawmakers will work to free up some $1.6 billion locked up in an essentially inactive account created 25 years ago to support activities of the then-newly initiated United States Enrichment Corp., after the senator highlighted the account on Monday in his weekly government “Waste of the Week” speech on the Senate floor. “Though the report indicates past legislative action regarding this fund, Senator Coats is not aware of any current legislative initiatives,” Coats Press Secretary Kristine Michalson said by email on Tuesday. “He hopes his effort to draw attention to it will trigger action.”

Coats’ criticism was rooted in conclusions of an April Government Accountability Office report, “2015 Annual Report: Additional Opportunities to Reduce Fragmentation, Overlap, and Duplication and Achieve Other Financial Benefits,” which recommended Congress streamline several accounts that GAO deemed ineffective for reasons ranging from being outdated to being financially unnecessary. The report suggests lawmakers consider rescinding the fund, as GAO said it had already achieved its purposes of supporting environmental cleanup associated with the disposition of depleted uranium and expenses of USEC privatization. The Energy Policy Act of 1992 created USEC to provide more privatized uranium enrichment services for the U.S. government and the utilities that operate U.S. power plants, and it also started the companion USEC Fund. But USEC transitioned to private ownership in 1996, and since late 2014 has operated under the new name of Centrus Energy.

The report notes that the House-passed version of the fiscal 2015 Energy and Water Development and Related Agencies Appropriations Act included language to rescind the USEC Fund, which the final “crominbus” appropriations bill for fiscal 2015 omitted. The USEC Fund sits as a revolving fund in the U.S. Treasury to carry out USEC objectives.

Michalson added that Coats agrees with GAO’s recommendation for rescinding the fund. “[T]here is a pot of money sitting in the USEC Fund that has no federally authorized use,” Coats said in a statement. “This is basically a zombie fund – its life should be over and yet it lives on.”

Comments are closed.

Nuclear Security & Deterrence Vol. 19 No. 43
Visit Archives | Return to Issue PDF

Nuclear Security & Deterrence Monitor

Article 8 of 13

November 13, 2015

Sen. Says $1.6M Inactive ‘USEC Fund’ is Gov’t Waste

By Alissa Tabirian

Brian Bradley
NS&D Monitor
11/13/2015

Though no initiatives appear to have been started, Sen. Dan Coats (R-Ind.) hopes lawmakers will work to free up some $1.6 billion locked up in an essentially inactive account created 25 years ago to support activities of the then-newly initiated United States Enrichment Corporation, after the senator highlighted the account on Monday in his weekly government “Waste of the Week” speech on the Senate floor. “Though the report indicates past legislative action regarding this fund, Senator Coats is not aware of any current legislative initiatives,” Coats’ Press Secretary Kristine Michalson said in an email on Tuesday. “He hopes his effort to draw attention to it will trigger action.”

Coats’ criticism was rooted in conclusions of the April-released Government Accountability Office report, “2015 Annual Report: Additional Opportunities to Reduce Fragmentation, Overlap, and Duplication and Achieve Other Financial Benefits,” which recommended Congress streamline several accounts that GAO deemed ineffective for reasons ranging from being outdated to being financially unnecessary. The report suggested that Congress consider rescinding the fund, as GAO stated that it had already achieved its purposes of supporting environmental cleanup associated with the disposition of depleted uranium and expenses of USEC privatization. The Energy Policy Act of 1992 created USEC to provide more privatized uranium enrichment services for the U.S. government and the utilities that operate U.S. power plants, and it also started the companion USEC Fund. But USEC transitioned to private ownership in 1996, and since late 2014 has operated under the new name of “Centrus.”

Comments are closed.