Activities History Uranium Facts Uranium Sales USEC Responsibilities Documents

The Energy Policy Act of 1992 (EPAct) created the United States Enrichment Corporation (USEC), now USEC Inc., a wholly owned Government corporation, as a first step in transferring the government's uranium enrichment operation to the private sector. The act transferred the Department of Energy's (DOE) uranium enrichment enterprise to USEC with the requirement that "within two years after the transition date, the corporation shall prepare a strategic plan for transferring ownership of the corporation to private investors."

USEC began operations July 1, 1993, and on June 30, 1995, presented President Clinton and Congress with their plan for privatization. On April 26, 1996, the USEC Privatization Act (Public Law 104-134) was signed into law. On July 25, 1997, President Clinton approved initiation of USEC privatization. USEC privatization was completed on July 28, 1998, through an initial public offering of stock and USEC officially changed its name to USEC Inc. The privatization act also provides that all liabilities arising from USEC's operations until the date of privatization are the responsibility of the United States.

USEC was granted the exclusive commercial rights to develop and deploy the Atomic Vapor Laser Isotope Separation (AVLIS) process, a next-generation enrichment technology. Developed for DOE by the Lawrence Livermore National Laboratory in California, this process uses lasers to separate fissionable uranium-235 from uranium-238. In July 1994, the USEC Board of Directors authorized their management to begin taking necessary steps to commercialize AVLIS technology. In April 1995, USEC and DOE entered into an agreement that provided for the transfer of intellectual and physical property pertaining to AVLIS enrichment technology to USEC. However, on June 9, 1999, USEC announced their decision to suspend further development of AVLIS enrichment technology citing their position that the return of investment is not sufficient to outweigh the risks and ongoing expenditures necessary to develop and construct and AVLIS plant.

In May 1998, President Clinton established the interagency Enrichment Oversight Committee (EOC) to ensure that U.S. national security interests are being served and that the privatized USEC is taking appropriate and timely actions to implement the U.S./Russia Highly Enriched Uranium Agreement consistent with existing law. EOC is chaired by a representative of the National Security Council. Members include representatives from several Federal departments, including Energy, Defense, Justice, State, Commerce, and Treasury, and the National Economic Council, National Security Council, Council of Economic Advisors, the intelligence community, and the Office of Management and Budget.