105th Congress: Democratic Perspectives House Committee on Energy and Commerce Democrats Welcome Page
The provision directing the Department of Energy to sell uranium is fatally flawed because
it fails to include the sort of fundamental protections the Committee historically has
included in legislation requiring the sale of federal assets. As a result, the legislation
could force DOE to sell stocks of surplus uranium at pennies on the dollar, depriving the
taxpayer of a reasonable return on the value of this material.
Current law authorizes the Department to sell surplus uranium at fair market prices upon a finding that doing so will not adversely affect the market. However, under this authority DOE retains discretion to time sales so as to maximize proceeds. Thus, under current law, the Department would not be compelled to conduct a uranium fire sale in a depressed market.
The Committee Print denies DOE this common sense, necessary discretion. It requires DOE to sell specific amounts of uranium on a set schedule, at whatever the "fair market" price is at the specified time. While requiring fair market value is an element of a sound asset disposition program, it is not sufficient in and of itself. The Dingell-Pallone-Strickland amendment addressed this deficiency through a failsafe provision which would permit deferral of the sale if the Secretary and the Director of O.M.B. jointly determine that the sale would not achieve a price that reflects the full value of the uranium, or is not in the best interests of the United States. This is the same protection included in the 1996 Defense Authorization bill provision directing DOE to sell the Elk Hills Naval Petroleum Reserve. Similarly, the statute requiring privatization of the United States Enrichment Corporation provides a "failsafe" for unanticipated market conditions in the form of a final Presidential approval of the sale.
One other deficiency in the majority's approach warrants comment. The Committee has not held hearings or built any type of record in support of a policy to make mandatory DOE's existing discretionary statutory authority to sell uranium. Nonetheless, the majority report is replete with references to what the Committee "expects" with respect to implementation of this provision, what market conditions "are not expected", and what the Department "has indicated" it "projects" may occur in the future. There is no Committee record in support of these conclusions, or with respect to other conclusions the majority draws concerning the Elk Hills sale. In the absence of any Committee activity or record on these matters, such statements are unfounded, inappropriate, and inconsistent with the goal of a balanced budget.
John D. Dingell
Edolphus Towns
Diana DeGette
Bobby L. Rush
Rick Boucher
Thomas J. Manton
Tom Sawyer
Anna G. Eshoo
Elizabeth Furse
Frank Pallone, Jr.
Sherrod Brown
Peter Deutsch
Ron Klink
Edward J. Markey
Bart Gordon
Henry A. Waxman
Ted Strickland
Karen McCarthy
Bart Stupak
105th Congress: Democratic Perspectives
House Committee on Energy and Commerce Democrats Welcome Page