To establish sound criteria for civilian nuclear cooperation with certain countries.

SECTION 1. AGREEMENTS FOR COOPERATION WITH STATES NOT PARTY TO THE 
              TREATY ON THE NON-PROLIFERATION OF NUCLEAR WEAPONS.

    (a) In General.--Chapter 11 of title I of the Atomic Energy Act of 
1954 (42 U.S.C. 2151 et seq.) is amended by inserting after section 123 
the following new section:

 ``nuclear cooperation with states not party to the treaty on the non-
                    proliferation of nuclear weapons

    ``Sec. 123A.  a. Requirements.--Cooperation may be undertaken under 
section 53, 54 a., 57, 64, 82, 103, or 104 with a state that is not a 
party to the Treaty on the Non-Proliferation of Nuclear Weapons as of 
January 2002, if that state--
            ``(1) has not carried out any nuclear weapon test explosion 
        or any other nuclear explosion after May 1998, and is adhering 
        to a unilateral moratorium on carrying out any such explosion, 
        or has signed and is adhering to a multilateral treaty 
        prohibiting any such explosion;
            ``(2) either--
                    ``(A) is adhering to a unilateral moratorium on the 
                production of fissile material for nuclear weapons;
                    ``(B) is adhering to a multilateral moratorium on 
                the production of fissile material for nuclear weapons; 
                or
                    ``(C) has signed and is adhering to a multilateral 
                treaty banning the production of fissile material for 
                nuclear weapons;
            ``(3) has provided the United States and the International 
        Atomic Energy Agency with a credible and comprehensive plan to 
        separate all civil and military nuclear facilities, materials, 
        and programs;
            ``(4) has entered into and is implementing an agreement 
        with the IAEA requiring the application of safeguards in 
        perpetuity to civil nuclear facilities and associated nuclear 
        materials as declared in the plan described in paragraph (3);
            ``(5) has provided credible assurances, as part of the plan 
        described in paragraph (3), that all future nuclear reactors 
        that generate electricity will be designated as civil and 
        placed under IAEA safeguards in perpetuity;
            ``(6) has signed and ratified, and is implementing, an IAEA 
        Additional Protocol;
            ``(7) is playing an active and constructive role in 
        addressing nuclear proliferation challenges posed by states of 
        proliferation concern, preventing illicit nuclear transactions, 
        and eliminating illicit nuclear commercial networks;
            ``(8) has established, and is successfully implementing, a 
        national export control system capable of effectively 
        controlling transfers of nuclear and nuclear-related material, 
        equipment, technology, and related data, including stringent 
        rules and procedures prohibiting unauthorized contacts and 
        cooperation by personnel with nuclear expertise;
            ``(9) is adhering to the guidelines of the Nuclear 
        Suppliers Group and the Missile Technology Control Regime;
            ``(10) has committed not to export enrichment, 
        reprocessing, or other sensitive fuel-cycle equipment or 
        technology to states that do not possess such equipment or 
        technology or to any nongovernmental entity;
            ``(11) is applying stringent physical protection, control, 
        and accountancy measures to all nuclear weapons, nuclear 
        facilities, source material, and special nuclear material in 
        its territory;
            ``(12) is in full compliance with any nuclear cooperation 
        agreement previously entered into with the United States and 
        with any derivative obligations stemming from such agreement 
        that continue to apply;
            ``(13) is not engaged in illicit efforts to procure 
        materials, equipment, or technology for a nuclear weapons 
        program;
            ``(14) has a democratically-elected government that exerts 
        effective control over the armed forces in its territory; and
            ``(15) meets the requirements under paragraphs (1), (3), 
        (4), (5), (6), (7), (8), and (9) of section 123 a.
    ``b. Exclusions.--No cooperation under this section may include the 
transfer of any enrichment or reprocessing equipment or technology, 
heavy water, or the means to produce heavy water.
    ``c. Procedural Requirements.--Cooperation under this section shall 
become effective only if--
            ``(1) the President certifies to the Congress that all the 
        requirements set forth in subsection a. have been met;
            ``(2) the President certifies to the Congress that the 
        agreement between the state with which an agreement for 
        cooperation has been entered into and the IAEA requiring the 
        application of safeguards in perpetuity to civil nuclear 
        facilities and associated nuclear materials conforms 
        substantially to IAEA safeguards standards, principles, and 
        practices;
            ``(3) the President, after meeting the requirements under 
        paragraphs (1)) and (2), submits the proposed agreement for 
        cooperation to the Congress, and, within a period of 60 days of 
        continuous session (as defined in section 130 g.) beginning on 
        the date of the submission, the Congress adopts, and there is 
        enacted, a joint resolution stating that the Congress does 
        favor the agreement; and
            ``(4) the President certifies to the Congress that the NSG 
        has reached a consensus decision to allow NSG participating 
        governments to transfer trigger list items and related 
        technology for use in civil nuclear facilities to the state 
        with which an agreement for cooperation has been entered into, 
        and that such decision does not allow transfers of nuclear or 
        nuclear-related material, equipment, or technology that is 
        prohibited under United States law or the terms of the 
        agreement for cooperation with that state.
Any such proposed agreement for cooperation shall be considered 
pursuant to the procedures set forth in section 130 i. for the 
consideration of Presidential submissions.
    ``d. Inapplicability of Certain Provisions.--
            ``(1) Prior activities.--Section 129 shall not apply to a 
        state with which an agreement for cooperation is entered into 
        under this section, with respect to actions by that state 
        before January 1, 2006.
            ``(2) Future activities.--Section 129(1)(D) shall not apply 
        to a state with which an agreement for cooperation is entered 
        into under this section, with respect to actions by that state 
        after the enactment of this section
    ``e. Conduct Resulting in Termination of Nuclear Exports.--
            ``(1) In general.--Nuclear or nuclear-related material, 
        equipment, or technology may not be exported to a state with 
        which an agreement for cooperation has been entered into under 
        this section if the President determines the state, or any 
        person or entity under the jurisdiction of the state, has--
                    ``(A) materially violated the agreement for 
                cooperation with the United States,
                    ``(B) terminated or abrogated IAEA safeguards that 
                the state is required to maintain,
                    ``(C) materially violated an IAEA safeguards 
                agreement,
                    ``(D) made any transfers of nuclear or nuclear-
                related material, equipment or technology that do not 
                conform to NSG guidelines,
                    ``(E) made any transfers of ballistic missiles or 
                missile-related equipment or technology that does not 
                conform to MTCR guidelines,
                    ``(F) produced fissile material for nuclear 
                weapons,
                    ``(G) carried out any nuclear weapon test explosion 
                or any other nuclear explosion, or
                    ``(H) assisted, encouraged, or induced any non-
                nuclear weapon state to engage in activities involving 
                source and special nuclear material and having direct 
                significance for the manufacture or acquisition of 
                nuclear explosive devices,
        unless the President determines that cessation of such exports 
        would be seriously prejudicial to the achievement of United 
        States non-proliferation objectives or otherwise jeopardize the 
        common defense and security.
            ``(2) Congressional review.--
                    ``(A) In general.--A determination of the President 
                under paragraph (1) regarding cessation of exports 
                being seriously prejudicial shall become effective only 
                if--
                            ``(i) the President submits the 
                        determination, together with a report 
                        containing the reasons for the determination, 
                        to the Congress; and
                            ``(ii) during the period of 60 days of 
                        continuous session (as defined in subsection 
                        130 g.) after the submission of the 
                        determination under clause (i), there is 
                        enacted a joint resolution stating in substance 
                        that the Congress does favor the determination.
                    ``(B) Procedures.--Any determination of the 
                President submitted to the Congress under subparagraph 
                (A)--
                            ``(i) shall be referred to the Committee on 
                        International Relations of the House of 
                        Representatives and the Committee on Foreign 
                        Relations of the Senate; and
                            ``(ii) shall be considered pursuant to the 
                        procedures set forth in section 130 for the 
                        consideration of Presidential submissions, 
                        except that the reference in subsection f. of 
                        that section to a concurrent resolution shall 
                        be deemed to refer to a joint resolution.
    ``f. Annual Report.--For each state that has entered into an 
agreement for cooperation under this section, the President shall 
submit to the Congress, not later than 1 year after such agreement has 
been entered into, and every 12 months thereafter, a report containing 
the President's assessment of that state with respect to the matters 
addressed in subparagraphs (A) through (H) of subsection e.(1).
    ``g. Definitions.--In this section:
            ``(1) IAEA.--The term `IAEA' means the International Atomic 
        Energy Agency.
            ``(2) MTCR.--The term `MTCR' means the Missile Technology 
        Control Regime.
            ``(3) NSG.--The term `NSG' means the Nuclear Suppliers 
        Group.''.
    (b) Conforming Amendment.--Section 130 of the Atomic Energy Act of 
1954 (42 U.S.C. 2159) is amended--
            (1) in subsection a., by striking ``subsection 126 a. (2)'' 
        and inserting ``section 123A e. (2), 126 a. (2)''; and
            (2) in subsection i. (2), by inserting ``or 123A d.'' after 
        ``123 d.''.

Summary: Amends the Atomic Energy Act of 1954 to set forth requirements for civilian cooperation with states that are not a party to the Treaty on the Non-Proliferation of Nuclear Weapons. Excludes from such cooperation transfer of any enrichment or reprocessing equipment or technology, heavy water, or the means to produce heavy water.