U S Government Accountability Office

Department of Energy, Enhanced Transparency Could Clarify Costs, Market Impact, Risk, and Legal Authority to Conduct Future Uranium Transactions U S Government Accountability Office

" USEC is the only company that uses U. S.-developed technology to enrich uranium. According to DOE, under international agreements the U. S. must use uranium enriched with domestic technology to meet national security needs, such as for nuclear weapons. In 2012 and 2013, DOE transferred uranium to USEC to support the development of next generation enrichment technology and for other national security purposes. In May 2013, USEC ceased enrichment operations and, in March 2014, filed for Chapter 11 bankruptcy protection. In April 2014, DOE announced it would assume managerial responsibility for continued development of the next generation technology. GAO was asked to review recent DOE transactions involving USEC. This report examines (1) the uranium transactions DOE undertook in 2012 and 2013 involving USEC, (2) legal concerns regarding the transactions, (3) other issues the transactions raise, and (4) the extent to which DOE assessed impacts of the transactions on the domestic uranium market. To address these issues, GAO analyzed relevant laws and key documents and interviewed DOE, USEC, and uranium industry officials, among other steps. "