S. R. No. 108 As Reported by the Senate Energy and Public Utilities Committee

As Reported by the Senate Energy and Public Utilities Committee

128th General Assembly

Regular Session

2009-2010

S. R. No. 108

Senator Carey

Cosponsors: Senators Niehaus, Schaffer, Gibbs, Seitz, Harris, Grendell, Miller, D., Hughes, Widener, Stewart

A RESOLUTION

To urge the President of the United States to direct 1
the United States Department of Energy to ensure 2
the continuation of the uranium enrichment work 3
being developed by USEC, Inc., at its Piketon, 4
Ohio plant by granting USEC's application for a 5
federal loan guarantee and to direct the Secretary 6
of Energy to strongly consider providing federal 7
funding assistance for the Clean Energy Park 8
Demonstration Project. 9

BE IT RESOLVED BY THE SENATE OF THE STATE OF OHIO:

       WHEREAS, USEC, Inc. is a global and leading supplier of 10
enriched uranium fuel for commercial nuclear power plants; and 11

       WHEREAS, USEC currently operates the American Centrifuge 12
Plant, a demonstration facility in Piketon, Ohio, that develops 13
next generation uranium enrichment technology; and 14

       WHEREAS, The United States Department of Energy (USDOE) 15
currently is considering USEC's application for a federal loan 16
guarantee for its American Centrifuge Plant and an expansion of 17
its nuclear enrichment work there; and 18

       WHEREAS, USDOE has agreed to delay a final review of USEC's 19
loan guarantee application for a period of at least six months to 20
allow USEC to meet required technical and financial milestones and 21
allow an independent engineer to provide technical guidance 22
demonstrating that the technology can be deployed at a commercial 23
scale; and 24

       WHEREAS, USEC and the Ohio Senate believe that the American 25
Centrifuge Plant project will meet the financial and technical 26
requirements of the USDOE's Loan Guarantee Program as well as 27
President Obama's policy objectives for energy security and 28
climate change goals and that the plant, through specific 29
reliability tests developed during this review period, will be 30
able to demonstrate with confidence that it is technologically 31
ready to transition to commercial operation; and 32

       WHEREAS, USDOE's failure to grant a loan guarantee will force 33
USEC, at a critical time in Ohio's economy, to demobilize its 34
American Centrifuge Plant uranium enrichment project jeopardizing 35
the expansion efforts at the Piketon plant and resulting in job 36
losses that will directly affect nearly 2,000 current USEC and 37
contractor employees in Ohio and several other states and 38
indirectly impact thousands more; and 39

       WHEREAS, In a separate effort, USEC, the Southern Ohio 40
Diversification Initiative, and power developers have joined to 41
form the Southern Ohio Clean Energy Park Alliance for the purpose 42
of pursuing the proposed development of a Clean Energy Park 43
Demonstration Project at the USDOE site in Piketon and to support 44
reindustrialization and asset reutilization as the cleanup work 45
at this site nears completion; and 46

        WHEREAS, The Alliance proposes to evaluate the Portsmouth 47
Gaseous Diffusion Plant site in Piketon as a potential location 48
for a new nuclear power plant and include in the evaluation both a 49
plant siting study and the preparation of licensing documents for 50
submission to the United States Nuclear Regulatory Commission as 51
part of its Early Site Permit process; and 52

        WHEREAS, A Generation III+ nuclear power reactor located at 53
this site, would create over 2,000 construction jobs with an 54
estimated payroll of $1.2 billion over six years and add 55
approximately 500 permanent professional and technical jobs to the 56
region without producing carbon emissions; and 57

        WHEREAS, A shared funding approach between the USDOE and the 58
Alliance is an appropriate method of funding this multi-billion 59
dollar project due to possible environmental contamination at the 60
Portsmouth Gaseous Diffusion Plant site, and whereby, under this 61
approach, the USDOE would fund the preparation of the Early Site 62
Permit and the Combined Operating License Application, and then 63
the Alliance would fund the nuclear power plant project as it 64
progresses; and 65

        WHEREAS, The USDOE has the authority to direct federal funds 66
toward projects such as the Clean Energy Park Demonstration 67
Project; now therefore be it 68

       RESOLVED, That we, the members of the Ohio Senate, urge the 69
President of the United States to direct the Secretary of USDOE 70
to use the additional review period regarding the loan application 71
for careful deliberation and as an opportunity to avert the 72
demobilization of the American Centrifuge Plant in Piketon, Ohio, 73
and allow the continued development of its uranium enrichment 74
technology by awarding USEC the federal loan guarantee for which 75
it applied; and be it further 76

       RESOLVED, That we, the members of the Ohio Senate, urge the 77
President of the United States to direct the Secretary of USDOE to 78
give strong consideration to the request made by the Southern Ohio 79
Clean Energy Park Alliance for federal funding assistance for the 80
Clean Energy Park Demonstration Project in Piketon, Ohio; and be 81
it further 82

       RESOLVED, That the Clerk of the Senate transmit duly 83
authenticated copies of this resolution to the President of the 84
United States, the Secretary of the United States Department of 85
Energy, the members of the Ohio Congressional delegation, the 86
Governor of Ohio, the Board of Pike County Commissioners, and the 87
news media of Ohio. 88

WHEREAS, USEC, Inc. is a global and leading supplier of	10
enriched uranium fuel for commercial nuclear power plants; and	11

WHEREAS, USEC currently operates the American Centrifuge	12
Plant, a demonstration facility in Piketon, Ohio, that develops	13
next generation uranium enrichment technology; and	14

WHEREAS, The United States Department of Energy (USDOE)	15
currently is considering USEC's application for a federal loan	16
guarantee for its American Centrifuge Plant and an expansion of	17
its nuclear enrichment work there; and	18

WHEREAS, USDOE has agreed to delay a final review of USEC's	19
loan guarantee application for a period of at least six months to	20
allow USEC to meet required technical and financial milestones and	21
allow an independent engineer to provide technical guidance	22
demonstrating that the technology can be deployed at a commercial	23
scale; and	24

WHEREAS, USEC and the Ohio Senate believe that the American	25
Centrifuge Plant project will meet the financial and technical	26
requirements of the USDOE's Loan Guarantee Program as well as	27
President Obama's policy objectives for energy security and	28
climate change goals and that the plant, through specific	29
reliability tests developed during this review period, will be	30
able to demonstrate with confidence that it is technologically	31
ready to transition to commercial operation; and	32

WHEREAS, USDOE's failure to grant a loan guarantee will force	33
USEC, at a critical time in Ohio's economy, to demobilize its	34
American Centrifuge Plant uranium enrichment project jeopardizing	35
the expansion efforts at the Piketon plant and resulting in job	36
losses that will directly affect nearly 2,000 current USEC and	37
contractor employees in Ohio and several other states and	38
indirectly impact thousands more; and	39

WHEREAS, In a separate effort, USEC, the Southern Ohio	40
Diversification Initiative, and power developers have joined to	41
form the Southern Ohio Clean Energy Park Alliance for the purpose	42
of pursuing the proposed development of a Clean Energy Park	43
Demonstration Project at the USDOE site in Piketon and to support	44
reindustrialization and asset reutilization as the cleanup work	45
at this site nears completion; and	46

WHEREAS, The Alliance proposes to evaluate the Portsmouth	47
Gaseous Diffusion Plant site in Piketon as a potential location	48
for a new nuclear power plant and include in the evaluation both a	49
plant siting study and the preparation of licensing documents for	50
submission to the United States Nuclear Regulatory Commission as	51
part of its Early Site Permit process; and	52

WHEREAS, A Generation III+ nuclear power reactor located at	53
this site, would create over 2,000 construction jobs with an	54
estimated payroll of $1.2 billion over six years and add	55
approximately 500 permanent professional and technical jobs to the	56
region without producing carbon emissions; and	57

WHEREAS, A shared funding approach between the USDOE and the	58
Alliance is an appropriate method of funding this multi-billion	59
dollar project due to possible environmental contamination at the	60
Portsmouth Gaseous Diffusion Plant site, and whereby, under this	61
approach, the USDOE would fund the preparation of the Early Site	62
Permit and the Combined Operating License Application, and then	63
the Alliance would fund the nuclear power plant project as it	64
progresses; and	65

WHEREAS, The USDOE has the authority to direct federal funds	66
toward projects such as the Clean Energy Park Demonstration	67
Project; now therefore be it	68

RESOLVED, That we, the members of the Ohio Senate, urge the	69
President of the United States to direct the Secretary of USDOE	70
to use the additional review period regarding the loan application	71
for careful deliberation and as an opportunity to avert the	72
demobilization of the American Centrifuge Plant in Piketon, Ohio,	73
and allow the continued development of its uranium enrichment	74
technology by awarding USEC the federal loan guarantee for which	75
it applied; and be it further	76

RESOLVED, That we, the members of the Ohio Senate, urge the	77
President of the United States to direct the Secretary of USDOE to	78
give strong consideration to the request made by the Southern Ohio	79
Clean Energy Park Alliance for federal funding assistance for the	80
Clean Energy Park Demonstration Project in Piketon, Ohio; and be	81
it further	82

RESOLVED, That the Clerk of the Senate transmit duly	83
authenticated copies of this resolution to the President of the	84
United States, the Secretary of the United States Department of	85
Energy, the members of the Ohio Congressional delegation, the	86
Governor of Ohio, the Board of Pike County Commissioners, and the	87
news media of Ohio.	88