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DCCUMENT FISUME
03699 - CB27940191
rHouse of Representatives' Amendmert to the Energy Research and
Development Administration's Autlorization Bill for Fiscal Year
1978]. EMD-77-73; B-159687. September 27, 1977. 5 pp. + 3
enclo s res.
Report to Rep. Olin Teague, Chairman, House Committee on Science
and Technology; Sen. Henry M. Jackson, Chairmar, Senate
Committee on Energy and Natural Resources; by Robert F. Keller,
Deputy Comptroller General.
Issue Area: Energy (1600).
Contact: Energy and Minerals Div.
Budget Function: Natural Resources, Environment, and Energy:
Energy (305).
Organizaticn Concern.d: Energy Rescarch and Development
Administration.
Congressional Relevance: House Comuittee on Science and
Technology; Senate Committee on Energy and Natural
Resources.
Authority: Atomic Enery Act of 1974. H.R. 6796 (95th Cong.). S.
1811 (95th Cong.).
The House amendment to the Energy Research and
Development Administration (ERDA) authorization bill would
substantially affect ERDA's basis for setting its price for
uranium a.irichmen1t services. Findings/Conclusions: The House
bill would not allow a Government enrichment price which covers
such factors as business risk and return on equity. Failure to
include such a component would perpetuate a barrier to private
industry's eventual entry in the ccmmercial uranium enrichment
market and continue a pricing structure that results in a
subsidy to enrichment custcmers. The Senate bill should more
clearly identify the cost factors that ERDA should include in
its price. The new Department of Energy should seek and
encourage private companies to continue their efforts to pursue
commercialization of advanced uranium enrichmert technologies.
Removing the enrichment pricing barrier is one of the ways the
Government could encourage commercial participation. The House
bill would coLtinae a pricing structure which would result in a
subsidy that wo'ild tend to discourage private enterprise.
Recommendations: Congress should reject the prevision in the
House bill requiring the Comptroller General to certify that the
price charge for u.:anium enrichment services does not recover a
profit for the Government. (SS)](ViewImageLocal?handle=hein.gao/gaobaawau0001&div=1&collection=&method=preview&ext=.png&size=3)