§2297h–10 Uranium Transfers and Sales

Summary

The Secretary must not give enrichment services or transfer or sell any uranium except in the ways this law allows. Under the deal with Russia, by December 31, 1996 the U.S. Executive Agent must give the Secretary title, free of charge, to enough uranium hexafluoride equal to the natural uranium part of low-enriched uranium made from at least 18 metric tons of highly enriched uranium bought from Russia. That quantity is calculated using a tails assay of 0.30 U235 and is treated as Russian-origin under U.S. law. The Secretary must sell that material within seven years of April 26, 1996. Some sales are allowed anytime (for overfeeding in U.S. enrichment plants or for export), some in 1995–1996 back to the Russian agent at the purchase price, and sales in calendar year 2001 for U.S. end users are limited to no more than 3,000,000 pounds U3O8 equivalent per year and not delivered before January 1, 2002. For enriched uranium delivered to the U.S. Executive Agent on or after January 1, 1997, the U.S. agent will, if Russia asks, deliver equivalent uranium hexafluoride to Russia (based on a 0.30 U235 tails assay) and title passes on delivery at a North American facility. If Russia does not ask within 90 days, an independent entity must auction the equivalent uranium and pay proceeds (minus costs) to Russia; that material is also treated as Russian-origin. Deliveries for U.S. end users may not occur before January 1, 1998 and then only up to annual limits: 1998—2; 1999—4; 2000—6; 2001—8; 2002—10; 2003—12; 2004—14; 2005—16; 2006—17; 2007—18; 2008—19; 2009 and each year after—20 (millions of pounds U3O8 equivalent). Matched sales under the Suspension Agreement and sales for overfeeding do not count against those caps. The conversion component may be sold without these limits. The Secretary of Commerce enforces these limits and can require information; Customs must help. The President must report to Congress by December 31 each year on how the Russian LEU deliveries affect U.S. mining, conversion, enrichment industries, and gaseous diffusion plant jobs and say what will be done to prevent or lessen harm. The Secretary must also transfer up to 50 metric tons of enriched uranium and up to 7,000 metric tons of natural uranium from DOE stockpiles to the Corporation free of charge, with limits: none of that uranium may be used commercially in the U.S. before January 1, 1998; after 1997 no more than 10% of the transferred uranium (by UF6 equivalent) or 4,000,000 pounds, whichever is less, may be delivered in any calendar year; and no more than 800,000 separative work units in low-enriched uranium may be delivered in any calendar year. Besides these transfers, the Secretary may sell natural or low-enriched uranium from DOE stockpiles only if the President says it’s not needed for national security, the Secretary finds the sale will not have an adverse material impact on U.S. uranium industries (counting Russian HEU and Suspension Agreement sales), and the sale price is at least fair market value. Exceptions allow transfers or sales of enriched uranium to federal agencies for their use without resale, for national security as the Secretary decides, or to state/local agencies and nonprofits or schools for noncommercial electricity use. Nothing in this law changes the terms of the Russian HEU Agreement.