Columbia, SC – Today, Energy Secretary Dan Brouillette joined Attorney General Alan Wilson in the South Carolina State House to announce a historic agreement between the Trump Administration and the State of South Carolina on the removal of 9.5 metric tons plutonium in the state. This agreement is the conclusion of years of litigation, which began during the Obama administration and a Congressional directive of almost two decades ago.
Through this unique agreement, American taxpayers will save $ 1.5 billion and the people of South Carolina will receive a government-backed commitment to withdraw material from the state, with an advance payment of $ 600 million. This agreement is a model of how states and the federal government can work together to produce mutually beneficial results to protect states’ interests and promote national security.
“The Trump administration is committed to addressing the most difficult challenges in our nation where previous administrations have failed, including removing and eliminating plutonium from the South Carolina state Cold War era,” he said. Secretary Brouillette. “Today’s announcement is a promise to the people of South Carolina that plutonium will be safely removed from this state, saving more than $ 1 billion for American taxpayers. I am grateful to Attorney General Wilson, Governor McMaster and other South Carolina leaders who have been strong DOE partners to take us to this day. This historic deal could not have been possible without the leadership and support of President Trump and Attorney General Barr. This is a good day for South Carolina. ”
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- After the Cold War and as part of its national security mission, DOE was challenged to find a safe and secure method for disposing of large quantities of nuclear material for weapons, including plutonium for weapons. The DOE determined that the best option would be to irradiate the material at a mixed oxide fuel (MOX) manufacturing facility on the Savannah River Site in South Carolina.
- As part of the 2002 MOX installation legislation, Congress demanded that in the event that the MOX installation fails to meet its production targets, DOE would be required to remove the plutonium sent to South Carolina for processing.
- In addition, the bylaws stated that if MOX production was not met and the material was not removed within a certain time, the DOE would be required to remit $ 1 million in economic assistance and impact payments to South Carolina per day for each day on which certain milestones have not been reached, up to a maximum of $ 100 million per year.
- In 2018, former secretary Perry exercised his right under the statute to terminate construction of the MOX facilities because the inherited project was approximately $ 13 billion over budget and 32 years late.
- Currently, 9.5 metric tons of plutonium brought into the state for MOX installation remains in South Carolina. The next legal removal deadline is January 1, 2022, after which DOE would be required to pay $ 1 million. per day, up to a maximum of $ 100 million per year until all plutonium is removed.
- DOE is committed to removing plutonium from South Carolina and will work continuously to find the most effective, efficient and safe way to do so. DOE is currently seeking removal through the “Dilute and Dispose” process – a process that is proven to be safe and effective, but time-consuming, ensuring that the DOE will miss the January 1, 2022 deadline.
- The current schedule projects that 9.5 metric tons will be completely removed by 2049, meaning that without the settlement agreement, DOE would be subject to economic assistance and impact payments of more than $ 2 billion.
- The agreement reached today will allow South Carolina to receive in advance a fixed amount of economic and impact assistance payments ($ 600 million), but it will also give the DOE more time (until 2037) to safely remove plutonium from the state without the threat of lawsuits.
Settlement Agreement Details
- Prepayment of US $ 600 million to the State of South Carolina.
- South Carolina will waive its right to file any lawsuit against the DOE for the removal of plutonium, and the DOE will be released from paying the payments required by law, until 2037.
- In 2037, the DOE will pay a percentage of the accumulated statutory payments for the years 2022-2037 based on the amount of plutonium left in the state.
- After 2037, DOE will pay a percentage of the $ 100 million required by law each year, based on the amount of plutonium left in the state.
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