McConnell argued that the sale of uranium processed at the facility could be sold at a profit. McConnell to feds: Save Ky. jobs

Senate Minority Leader Mitch McConnell visited an Appropriations Committee hearing Wednesday to put pressure on the Energy Department to save jobs in Kentucky.

The Republican leader pressed Energy Secretary Steven Chu to save a uranium enrichment facility in western Kentucky run by USEC Inc. that does contract work for the federal government. USEC is looking to expand its business with the agency through a $2 billion loan guarantee for a new facility in Piketon, Ohio, but its application stalled before the DOE.


The plant in Paducah, Ky., could potentially close down in the next year or so because of its overall operating expenses, taking its 1,200 jobs with it.

"We cannot afford to lose one more job, let alone 1,200," McConnell said.

McConnell argued that the sale of uranium processed at the facility could be sold at a profit for the federal government and "keep 1,200 people from collecting unemployment."

"If there is the potential for DOE to save these jobs, would you not think that would be worth pursuing?" McConnell asked.

But Chu didn't back down.

"We are certainly very concerned about any job impacts from actions we take but there are other issues that I'd be happy to talk to you about," he said.

Chu explained the plant has two major hurdles.

First, it uses World War II-era enrichment processes while superior technology already exists. Second, agreements with the uranium mining industry restrict the amount of enriched uranium the federal government can put on the market each year to 10 percent. The quota, Chu said, could be reached without the Paducah facility.

"I'd rather we invest in more forward-leaning technologies," Chu said. "Right now, we have to make very, very hard decisions given the budget realities."

"We don't expect Congress to give us our proposed budget," he said.

"Well, we've got 1,200 employees sitting there wondering if they're going to be without a job," McConnell said. "How many of your tough decisions actually give you an opportunity to actually raise revenue?"

CORRECTION: An earlier version of this story misrepresented what the plant loan guarantee was to be applied to.

This article first appeared on POLITICO Pro at 5:32 a.m. on May 19, 2011.

CORRECTION: Corrected by: Naira Ruiz @ 05/19/2011 10:53 AM CORRECTION: An earlier version of this story misrepresented what the plant loan guarantee was to be applied to.