DOE: Nevada misspent Yucca oversight funds

Suzanne Struglinski

Thursday, Aug. 4, 2005 | 11:12 a.m.

WASHINGTON -- Clark County misspent about $163,000 in federal funds earmarked for Yucca Mountain oversight, according to an Energy Department inspector general office report released today.

Clark County officials strongly deny misspending money and plan to appeal.

The report audited the spending of the Yucca oversight money by Nevada's state government as well as by Nye, Lincoln and Clark counties and identified $1.2 million in "questionable costs." Prior reports also found misuse of the money, and the auditors are again recommending that the Energy Department exercise more control over how the money is spent.

The latest audit says the state and local governments "continued to use oversight funds for activities either unrelated to the Yucca Mountain project or specifically prohibited by the applicable Appropriations Act."

Under the Nuclear Waste Policy Act, the federal law that guides the plans to build a nuclear waste repository at Yucca, 90 miles northwest of Las Vegas, Nevada and local governments can get federal money to monitor government work.

In fiscal year 2003 and 2004, the Energy Department allocated a total of $14.5 million for the state government and 10 local governments, including Clark County.

The inspector general's office found:

Clark County incorrectly spent more than $163,000, including $87,000 to hire contractors to monitor federal legislation and meet with federal officials and $70,000 to prepare a "visioning report" for Indian Springs. Clark County also misspent some of the federal money for work on Nevada Test Site-related issues, to attend conferences and buy office supplies for other programs. The county has paid back $960 so far.

"While the Act allows Clark County to provide information regarding activities of the State of Nevada, Secretary of Energy or Nuclear Regulatory Commission, meetings and discussions with other federal officials were not permitted oversight activities," according to the report.

The state improperly spent more than $81,000 to pay for attorney costs, Nevada Test Site activities, tours of Yucca with non-Nevada residents and "excessive conference costs." The report noted that the state paid back $74,000 of the "erroneous expenditures."

Nye County inappropriately spent about $720,000 and Lincoln County incorrectly used more than $211,000.

Clark County officials strongly disagree with the report. They plan to appeal to the Energy Department's Yucca Mountain program office.

"We are disappointed by the report," said Irene Navis, planning manager for the county's nuclear waste division. "We absolutely welcome scrutiny because we are using federal dollars. But we believe the results are incorrect as they relate to Clark County."

Navis noted that the Energy Department had approved as appropriate all the expenditures that were questioned in the report.

Navis said the county can prove that it did not use money for any activities that are banned under federal law, such as lobbying, forming coalitions and outreach outside the state.

"The bottom line is that we are not violating any federal laws," she said.

She also noted that the last time there was a review for the 2001 and 2002 fiscal years, the inspector general's office questioned $177,000 in expenses, but after county appeal that figure was reduced to just $38,000.