Letter to Secretary Spencer Abraham, United States Department of Energy

October 15, 2003

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 with regards to an outstanding payment owed by the Department of Energy's Office of Civilian Radioactive Waste Management (RW) to the State of Washington. Under the Nuclear Waste Policy Act, those states with sites that were considered as candidates for the national High Level Nuclear Waste Repository are entitled to grant payments equivalent to taxes that would have been paid had the site characterization activities at those sites been performed by private, tax-paying entities rather than the Government.

The Hanford Site in eastern Washington state - specifically, the Basalt Waste Isolation Project and Near Surface Test Facility (BWIP) - was one of the locations considered for the repository. After it was ruled out, and site characterization activities ceased, the State of Washington filed Payments Equal to Taxes (PETT) claim with DoE's Office of Civilian Radioactive Waste Management (RW) in 1993. For ten years, RW has denied responsibility for paying Washington's Business and Occupation Tax (B&O tax) for activities carried out at the Hanford Reservation.

On June 25, 2002, and again on July 16, 2003, the Department's own Office of Hearings and Appeals (OHA) examined the issue and ruled in Washington state's favor. In its most recent 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, October 3, the Department of Energy has yet to remit a payment to Washington. I would like to know 1) why the Department has yet to pay the state the money it is owed and 2) when the Department will make the payment.

I appreciate your prompt consideration of this matter and I await your reply.

Sincerely,

Maria Cantwell
United States Senator