01.09.04

Cantwell: DOE's Outstanding Debt to Washington State Must Finally Be Settled

Senator Reacts to A.G. Gregoire's Lawsuit Against Energy Department

WASHINGTON, D.C.– U.S. Senator Maria Cantwell sent a strong message today to the U.S. Department of Energy (DOE): Pay your bills. In a letter to Sec. Spencer Abraham, Cantwell urged DOE to pay Washington state nearly $7 million it has owed to the state for over ten years. Cantwell's letter supports the action of Washington state Attorney General Christine Gregoire, who has filed a lawsuit against the DOE seeking payment of the outstanding debt.

"The DOE's reaction to this debt has been to simply ignore it," said Cantwell. "Attorney General Gregoire had no choice but to file suit, and I support her decision. The Department of Energy owes Washington state taxpayers this money and it's time to pay the bill."

The lawsuit was filed in the District of Columbia Circuit of the U.S. Court of Appeals. It seeks payment of $6.8 million owed to Washington state as a payment equal to taxes that could have been imposed when the Hanford Reservation was being considered for the national High Level Nuclear Waste Repository site.

In 1986, the DOE's Hanford Reservation was chosen as one of three final candidates for the nuclear waste repository. The department eventually ruled out Hanford, deciding instead on Yucca Mountain in Nevada.

The Nuclear Waste Policy Act of 1982 requires that the DOE pay the equivalent of state taxes for activities carried out during the consideration of a potential repository site. While the department made a partial payment, it disputed nearly $7 million that it owed the state under the law.

Washington state filed a claim for the funds in 1993 and has won every hearing on the issue, including two last summer with the DOE's Office of Hearing and Appeals. The DOE continues to stall on making the payment to Washington state.

Cantwell also wrote to Secretary Abraham in October requesting payment of the debt.

The text of the Cantwell's most recent letter to Secretary Abraham follows below:

January 9, 2004

The Honorable Spencer Abraham

Secretary United States Department of Energy

1000 Independence Avenue, S.W.

Washington, D.C. 20585

Dear Secretary Abraham,

I am writing to follow up on the outstanding payment owed by the Department of Energy's (DOE) Office of Civilian Radioactive Waste Management (RW) to the State of Washington. For more than a decade, DOE has failed to meet its responsibility to make payments equivalent to taxes to the state for site characterization activities at the Hanford Reservation when it was considered as a candidate for the national High Level Nuclear Waste Repository.

Twice in recent years – on June 25, 2002, and again on July 16, 2003 – DOE's Office of Hearings and Appeals (OHA) examined the issue and ruled in Washington state's favor. In its July 16, 2003, ruling, OHA directed RW to "update the interest calculation to determine the final amount of Washington's PETT grant as of September 1, 2003, and to pay that amount to the State without further delay." In accordance with this ruling, RW owes Washington state approximately $6.8 million.

As of today, Washington state has yet to receive the long-overdue payment. Your Department's inaction has left the state with no recourse but to seek remedy in court. I support the action taken yesterday by Washington Attorney General Christine Gregoire to force DOE to meet its obligation to the state.

I wrote to you about this issue on October 3, 2003. I am very disappointed that I have yet to hear a response from you or any other DOE official. Given the delay, I would like a written response from you explaining when the Department will make the payment and an explanation of why the Department has yet to pay the state the money it is owed. I appreciate your prompt consideration of this matter, which is of great importance to Washington state, and I await your reply.

Sincerely,

Maria Cantwell

United States Senator