SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Assisting Acquisition of Russian 
Material Act (AARM Act)''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds the following:
            (1) The maintenance of the Russian HEU Agreement and the 
        timely and satisfactory acquisition of Russian highly enriched 
        uranium (referred to as ``HEU'') under that Agreement by the 
        Department of Energy and the United States Executive Agent is 
        essential to the national security and foreign policy interests 
        of the United States.
            (2) Implementation of the Russian HEU Agreement will result 
        in the import of a total of 500 metric tons of weapons-grade 
        enriched uranium into the United States, and commencing in 
        1999, the Russian HEU under the agreement will be imported at a 
        rate of 30 metric tons per year. When converted into low 
        enriched uranium (referred to as ``LEU'') for use in nuclear 
        reactors to generate electricity, it will equal a substantial 
        portion of United States utility demand for nuclear fuel.
            (3) The United States Enrichment Corporation is required at 
        the time of privatization to meet the statutory requirements 
        set out in subsection (b)(2) of this section and, except for 
        subparagraphs (A) and (H), following privatization. The 
        execution of the Russian HEU Agreement will significantly 
        increase the supply of LEU fuel available in the United States 
        marketplace; and, as a result and in order to balance supply 
        with demand, the privatized United States Enrichment 
        Corporation may have to take actions contrary to or 
        inconsistent with maintaining long-term viability, continued 
        operation of the gaseous diffusion plants, and a reliable and 
        economical domestic source of uranium mining, enrichment, and 
        conversion services, and other statutory requirements referred 
        to in subsection (b)(2).
            (4) The principal responsibility for ensuring the faithful 
        implementation of the United States obligations under the 
        Russian HEU Agreement, which is a government-to-government 
        agreement, lies with the Department of Energy; and the 
        execution of those obligations is an inherently governmental 
        function under the foreign policy of the United States.
            (5) Therefore, the Department of Energy shall, subject to 
        appropriations, acquire directly or from the United States 
        Executive Agent such amounts of the Russian HEU converted to 
        LEU under the Russian HEU Agreement, and withhold such amounts 
        from resale into the private market for such period of time, as 
        may be necessary to fully achieve the national security goals 
        of the United States under the Russian HEU Agreement and to 
        allow a privatized United States Enrichment Corporation to meet 
        the statutory requirements of the privatization.
    (b) Purposes.--The purposes of this Act are--
            (1) To achieve the national security objectives of the 
        Russian HEU Agreement.
            (2) To achieve the requirements for privatization of the 
        United States Enrichment Corporation set out in the Energy 
        Policy Act of 1992 and the United States Enrichment Corporation 
        Privatization Act, as follows:
                    (A) Assure that privatization will result in a 
                return to the United States at least equal to the net 
                present value of the Corporation.
                    (B) Assure that privatization will not result in 
                the Corporation being owned, controlled, or dominated 
                by an alien, a foreign corporation, or a foreign 
                government.
                    (C) Assure that the privatization will not be 
                inimical to the health and safety of the public or the 
                common defense and security.
                    (D) Provide reasonable assurance that adequate 
                enrichment capacity will remain available to meet the 
                demands of the domestic electric utility industry.
                    (E) Assure that privatization will provide for the 
                long-term viability of the Corporation.
                    (F) Assure that privatization will provide for the 
                continuation by the Corporation of the operation of the 
Department of Energy's gaseous diffusion plants.
                    (G) Assure that privatization will provide for the 
                protection of the public interest in maintaining a 
                reliable and economical domestic source of uranium 
                mining, enrichment, and conversion services.
                    (H) To the extent not inconsistent with 
                requirements of subparagraphs (E), (F), and (G), assure 
                that privatization will secure the maximum proceeds to 
                the United States.
            (3) To monitor and determine the effect the LEU delivered 
        under the Russian HEU Agreement is having on the domestic 
        uranium mining, conversion, and enrichment industries and the 
        operation of the gaseous diffusion plants, and to prevent or 
        mitigate any material adverse impact on such industries or any 
        loss of employment at the gaseous diffusion plants as a result 
        of the Russian HEU Agreement.

SEC. 4. STANDBY AUTHORIZATION.

    Section 3112(b) of the United States Enrichment Corporation 
Privatization Act (42 U.S.C. 2297h-10) is amended by adding at the end 
the following:
    ``(11) The Secretary is authorized to purchase and hold any amount 
of any contract obligation of the United States Executive Agent to 
acquire Russian HEU converted to LEU under the Russian HEU Agreement 
during any year in which the Russian HEU Agreement is in force, and 
resell such material, upon the following terms and conditions:
            ``(A) At the end of any month, the United States Enrichment 
        Corporation shall certify to the Secretary when enrichment of 
        uranium at the gaseous diffusion plants, measured in SWU, for 
        the previous 12 months, is determined to be 25 percent below 
        the average annual enrichment in SWU for the years 1992 through 
        1997.
            ``(B) In its certification under subparagraph (A), the 
        United States Enrichment Corporation shall indicate the effects 
        that the purchase and resale of the converted Russian HEU by 
        the United States Executive Agent under the Russian HEU 
        Agreement are having on its long-term viability, including its 
        operations, costs, sales and profitability, and in particular 
        any reduction in the levels of enrichment services and 
        employment at the gaseous diffusion plants or threat thereof. 
        The United States Enrichment Corporation shall also certify 
        what actions it has taken or may be required to take to 
        mitigate such effects of the purchases and resales of the 
        converted Russian HEU under the Russian HEU Agreement when 
        combined with other effects and causes in the marketplace.
            ``(C) Within 30 days of the certification by the United 
        States Enrichment Corporation under subparagraphs (A) and (B), 
        the Secretary shall review that certification and make a report 
        to the President which shall include any recommendation for the 
        Secretary to purchase directly, or from the United States 
        Executive Agent, and hold a sufficient amount of converted 
        Russian HEU under the Russian HEU Agreement to assure that the 
        national security objectives of the Russian HEU Agreement are 
        met and that the United States Enrichment Corporation is able 
        to meet its obligations under this Act to provide for the long-
        term viability of the Corporation, the continuation by the 
        Corporation of the operation of the Department of Energy's 
        gaseous diffusion plants, and for the protection of the public 
        interest in maintaining a reliable and economical domestic 
        source of uranium mining, conversion, and enrichment services. 
        The Secretary shall deliver a copy of the report to the Senate 
        Committee on Energy and Natural Resources and the House of 
        Representatives Committee on Commerce and shall publish it in 
        the Federal Register. The Secretary shall not publicly disclose 
        essential proprietary information of the United States 
        Enrichment Corporation or the United States Executive Agent, as 
        determined by regulations promulgated by the Secretary, 
        consistent with providing the greatest amount of information to 
        the public, particularly in the communities directly affected, 
        and to all parties in interest in the enrichment of uranium at 
        the gaseous diffusion plants and shareholders or stakeholders 
        in the United States Enrichment Corporation and the United 
        States Executive Agent.
            ``(D) The President shall thereafter direct the Secretary 
        to acquire such amounts of converted Russian HEU under the 
        Russian HEU Agreement as the President determines necessary for 
        these purposes from funds available for such purposes. The 
        President shall also request appropriations from the Congress 
        for current and future acquisitions of such amount of such 
        converted Russian HEU as the President determines necessary for 
        these purposes. Within 10 days of receipt of the report by the 
        Secretary, the President shall request an investigation under 
        section 332 of the Tariff Act of 1930 (19 U.S.C. 1332) of the 
        impact of the Russian HEU Agreement on the operations and 
employment at the gaseous diffusion plants and the uranium mining, 
enrichment, and conversion industries in the United States. Such 
investigation shall be completed within 3 months of such request and 
the Commission shall report the results to the President and the 
Congress.
            ``(E) As directed by the President, the Secretary shall 
        acquire such amounts of converted Russian HEU under the Russian 
        HEU Agreement in such manner and at such prices as authorized 
        under the Russian HEU Agreement and shall withhold such amounts 
        from resale into the private markets of the United States or 
        elsewhere until such time as it is determined, pursuant to 
        regulations promulgated by the Secretary, that the United 
        States Enrichment Corporation is producing enrichment services 
        measured in SWU at the gaseous diffusion plants for a 
        consecutive 12-month period that equals or exceeds 110 percent 
        of the average annual enrichment in SWU for the period 1992 
        through 1997.
            ``(F) Upon the determination referred to in subparagraph 
        (E), the Secretary may then, pursuant to regulations 
        promulgated by the Secretary, auction for resale an amount of 
        converted Russian HEU acquired under this Act which is not more 
        than the amount in excess of 100 percent of the average annual 
        enrichment in SWU for the period 1992 through 1997. Such 
        amounts of converted Russian HEU shall not be sold in any 
        manner that would have a material adverse impact on the 
        domestic uranium mining, conversion, or enrichment industry and 
        shall not be sold directly to end-users in direct competition 
        with the United States Enrichment Corporation. Such amounts of 
        converted Russian HEU shall not be sold at prices less than 
        current market prices for comparable sales, but in no event may 
        such sale prices by the Secretary be less than the amount paid 
        for any such lot or lots, plus the expenses of holding and sale 
        by the Secretary. Purchasers at such auction may not sell to 
        end-users at any price that is less than the price, including 
        expenses of the Secretary, paid to the Secretary at such 
        auction. The term `material adverse impact', as used in this 
        Act, shall have the same meaning as `material injury' under 
        section 771(7) of the Tariff Act of 1930 (19 U.S.C. 1677(7)) 
        and the Secretary shall consider the impacts and relevant 
        factors affecting the domestic industry as enumerated in 
        subparagraphs (B) and (C) of such section.
            ``(G) The regulations required to be promulgated by the 
        Secretary under subparagraphs (E) and (F) shall be subject to 
        the administrative procedures required by chapter 5 of title 5, 
        United States Code, shall be proposed within 90 days of the 
        date of the enactment of the Assisting Acquisition of Russian 
        Material Act, allow not less than a 90-day comment period, and 
        shall become final no less than one year from the date of the 
        enactment of such Act. Such regulations shall--
                    ``(i) establish the procedures for the 
                determination of maximum allowable amount of converted 
                Russian HEU eligible for sale under subparagraph (F);
                    ``(ii) establish the criteria for determining the 
                current market price at the time of sale, and the 
                minimum price which is the sum of the Secretary's 
                acquisition, holding, and sales costs of each lot 
                acquired, except that the Secretary may provide for the 
                separate payment of the costs of sale by successful 
                bidders by a percentage commission of the sale price or 
                otherwise;
                    ``(iii) provide for the qualifications of buyers to 
                assure they are authorized to handle the nuclear 
                materials and are not end-users;
                    ``(iv) provide for not less than 45 days notice of 
                a sale, which notice shall set out the maximum 
                allowable amounts of converted Russian HEU eligible for 
                sale and the minimum price calculated for each lot 
                offered for sale and the basis for such determinations;
                    ``(v) shall allow for comment on such notice, the 
                purpose of which is to avoid any material adverse 
                impact on the domestic uranium mining, conversion, or 
                enrichment industries from such sale;
                    ``(vi) provide for a determination that less than 
                the maximum allowable amount of material may be offered 
                for sale in order to avoid any material adverse impact 
                and that a sale may be made in installments to avoid 
                such impact; and
                    ``(vii) provide procedures for determining that the 
                resales by buyers from the Secretary were made to 
                eligible end-users at prices in accord with 
                subparagraph (F) and the requirements of this Act.
            ``(H) Any action alleging a violation of any provision of 
        this Act may be brought in any district court of the United 
        States having jurisdiction over the parties (except in those 
        instances where another law specifically requires a different 
        venue) without regard to the amount in controversy or the 
        citizenship of the parties.''.
Assisting Acquisition of Russian Material Act (AARM Act) - Amends the United States Enrichment Corporation Privatization Act regarding uranium transfers and sales to authorize the Secretary of Energy to:  (1) purchase and hold any amount of any contract obligation of the United States Executive Agent to acquire Russian highly enriched uranium (HEU) converted to low-enriched uranium under the Russian HEU Agreement; and (2) resell such material according to prescribed guidelines.  Confers jurisdiction upon the Federal district courts for violations of such Act without regard to the amount in controversy or the citizenship of the parties.
Assisting Acquisition of Russian Material Act (AARM Act)