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Response to Chairman Ottinger's Request on the Economic Comparisons of the AGC and AVLIS Processes 1 (December 1984)

handle is hein.congrec/cbo8811 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE Rudolph G. Penner U.S. CONGRESS Director WASHINGTON, D.C. 20615 December 6, 1984 MEMORANDUM TO: Jeanine Hull- Subcommittee on Energy Conservation and Power House Committee on Energy and Commerce FROM: Mollie Quasebarth John Thomasian Natural Resources and Commerce Division SUBJECT: Response to Chairman Ottinger's Request on the Economic Comparisons of the AGC and AVLIS Processes This memorandum presents the results of CBO's update of its October 1983 study entitled, Uranium Enrichment. Options for the Long Term. It summarizes the recent changes that have affected the enrichment program and compares the enrichment costs of the two advanced technologies being considered by the Department of Energy (DOE). Our results are similar to those provided in the draft memo (September 14, 1984), but do include some changes and additional analyses. it is important to note that DOE's comments (attached) on our September draft memo indicate that some of the data we used are being revised. These revisions will not be available to us until after the DOE submits its annual budget request to the Congress in early 1985. Thus, our comparisons reflect only the current published cost estimates for the two developing technologies, and will be subject to question until after the peer review on the advanced technologies is completed in May 1985. The effects of possible revisions are also discussed. SUMMARY We evaluated various uranium enrichment program options to deter- mine the most cost-effective investment scheme for the federal govern- ment. The options examined reflect important changes that have occurred since CBO's October 1983 report. These include the following: 1

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