DOE could save billions on depleted uranium cleanup, report finds

Today, the Government Accountability Office (GAO) released a report recommending Congress give clearer legal authorities to the Department of Energy (DOE) regarding its ability to sell depleted uranium, which could potentially save the Department billions of dollars.

DOE’s Office of Environmental Management (EM) is responsible for cleaning up the nuclear waste left behind at two former federal uranium enrichment sites – the Portsmouth site in Ohio, and Paducah site in Kentucky. These sites now convert DUF6, a dangerous byproduct of the uranium enrichment process, into a more stable chemical form that can be disposed of or reused.

DOE estimates it could cost at least $7.2 billion to convert and dispose of the DUF6 at its sites. But if DOE can transfer portions of its DUF6 inventory—such as by selling some to a private company—it could save billions. However, it's unclear if DOE has authority to sell depleted uranium.

GAO recommended Congress consider clarifying DOE's authority to sell depleted uranium.

What GAO found

According to EM, the agency spent about $47.4 million on modifications during the COVID-19 shutdown that officials say will improve the facilities' efficiency. EM has not fully assessed the impact of this shutdown on the conversion mission, but officials said that they were developing new cost and schedule estimates for the facilities that will be finalized in 2022.

EM has three agreements to reserve nearly 30,000 cylinders of DUF6 (about 44 percent of the inventory) for use by other entities. If the agreements are finalized, the agency may not need to convert all its DUF6 and could reduce operations of the conversion facilities by roughly 30 years, potentially saving over $2 billion in operations costs.

EM has two agreements to transfer ownership of nearly 5,500 cylinders to the National Nuclear Security Administration for two separate programs, but the plans and timing of one agreement are uncertain. EM has also reserved over 24,000 cylinders to sell to a private company. However, DOE's authority to sell depleted uranium is doubtful, as it appears to be inconsistent with the 1996 legislation governing DOE uranium disposition. Clarifying DOE's authority to sell depleted uranium could help avoid litigation that could interrupt DOE's efforts to sell DUF6.

EM has identified options for disposing of depleted uranium oxide, but plans have not been finalized. EM has determined that three waste disposal sites may be suitable for the depleted uranium oxide but, as of March 2022, only one site is licensed to receive it.

Officials said that the agency has been waiting for funding to begin the disposal process. In addition, EM has directed its contractor to sell hydrofluoric acid to a private company and apply the proceeds of those sales to contract costs.

To read the full report, please click here.