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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1216 Reported in House (RH)]

                                                  Union Calendar No. 41

104th CONGRESS

  1st Session

                               H. R. 1216

                          [Report No. 104-86]

_______________________________________________________________________

                                 A BILL

To amend the Atomic Energy Act of 1954 to provide for the privatization 
              of the United States Enrichment Corporation.

_______________________________________________________________________

                             March 23, 1995

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed

                                                  Union Calendar No. 41
104th CONGRESS
  1st Session
                                H. R. 1216

                          [Report No. 104-86]

To amend the Atomic Energy Act of 1954 to provide for the privatization 
              of the United States Enrichment Corporation.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 13, 1995

  Mr. Bliley introduced the following bill; which was referred to the 
                         Committee on Commerce

                             March 23, 1995

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on March 
                               13, 1995]

_______________________________________________________________________

                                 A BILL

 
To amend the Atomic Energy Act of 1954 to provide for the privatization 
              of the United States Enrichment Corporation.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND REFERENCE.

    (a) Short Title.--This Act may be cited as the ``USEC Privatization 
Act''.
    (b) Reference.--Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Atomic 
Energy Act of 1954 (42 U.S.C. 2011 et seq.).

SEC. 2. PRODUCTION FACILITY.

    Paragraph v. of section 11 (42 U.S.C. 2014 v.) is amended by 
striking ``or the construction and operation of a uranium enrichment 
production facility using Atomic Vapor Laser Isotope Separation 
technology''.

SEC. 3. DEFINITIONS.

    Section 1201 (42 U.S.C. 2297) is amended--
            (1) in paragraph (4), by inserting before the period the 
        following: ``and any successor corporation established through 
        privatization of the Corporation'';
            (2) by redesignating paragraphs (10) through (13) as 
        paragraphs (14) through (17), respectively, and by inserting 
        after paragraph (9) the following new paragraphs:
            ``(10) The term `low-level radioactive waste' has the 
        meaning given such term in section 102(9) of the Low-Level 
Radioactive Waste Policy Amendments Act of 1985 (42 U.S.C. 2021b(9)).
            ``(11) The term `mixed waste' has the meaning given such 
        term in section 1004(41) of the Solid Waste Disposal Act (42 
        U.S.C. 6903(41)).
            ``(12) The term `privatization' means the transfer of 
        ownership of the Corporation to private investors pursuant to 
        chapter 25.
            ``(13) The term `privatization date' means the date on 
        which 100 percent of ownership of the Corporation has been 
        transferred to private investors.'';
            (3) by inserting after paragraph (17) (as redesignated) the 
        following new paragraph:
            ``(18) The term `transition date' means July 1, 1993.''; 
        and
            (4) by redesignating the unredesignated paragraph (14) as 
        paragraph (19).

SEC. 4. EMPLOYEES OF THE CORPORATION.

    (a) Paragraph (2).--Paragraphs (1) and (2) of section 1305(e) (42 
U.S.C. 2297b-4(e)(1)(2)) are amended to read as follows:
            ``(1) In general.--It is the purpose of this subsection to 
        ensure that the privatization of the Corporation shall not 
        result in any adverse effects on the pension benefits of 
        employees at facilities that are operated, directly or under 
        contract, in the performance of the functions vested in the 
        Corporation.
            ``(2) Applicability of existing collective bargaining 
        agreement.--The Corporation shall abide by the terms of the 
        collective bargaining agreement in effect on the privatization 
        date at each individual facility.''.
    (b) Paragraph (4).--Paragraph (4) of section 1305(e) (42 U.S.C. 
2297b-4(e)(4)) is amended--
            (1) by striking ``and detailees'' in the heading;
            (2) by striking the first sentence;
            (3) in the second sentence, by inserting ``from other 
        Federal employment'' after ``transfer to the Corporation''; and
            (4) by striking the last sentence.

SEC. 5. MARKETING AND CONTRACTING AUTHORITY.

    (a) Marketing Authority.--Section 1401(a) (42 U.S.C. 2297c(a)) is 
amended effective on the privatization date (as defined in section 
1201(13) of the Atomic Energy Act of 1954)--
            (1) by amending the subsection heading to read ``Marketing 
        Authority.--''; and
            (2) by striking the first sentence.
    (b) Transfer of Contracts.--Section 1401(b) (42 U.S.C. 2297c(b)) is 
amended--
            (1) in paragraph (2)(B), by adding at the end the 
        following: ``The privatization of the Corporation shall not 
        affect the terms of, or the rights or obligations of the 
        parties to, any such power purchase contract.''; and
            (2) by adding at the end the following:
            ``(3) Effect of transfer.--
                    ``(A) As a result of the transfer pursuant to 
                paragraph (1), all rights, privileges, and benefits 
                under such contracts, agreements, and leases, including 
                the right to amend, modify, extend, revise, or 
                terminate any of such contracts, agreements, or leases 
                were irrevocably assigned to the Corporation for its 
                exclusive benefit.
                    ``(B) Notwithstanding the transfer pursuant to 
                paragraph (1), the United States shall remain obligated 
                to the parties to the contracts, agreements, and leases 
                transferred pursuant to paragraph (1) for the 
                performance of the obligations of the United States 
                thereunder during the term thereof. The Corporation 
                shall reimburse the United States for any amount paid 
                by the United States in respect of such obligations 
                arising after the privatization date to the extent such 
                amount is a legal and valid obligation of the 
                Corporation then due.
                    ``(C) After the privatization date, upon any 
                material amendment, modification, extension, revision, 
                replacement, or termination of any contract, agreement, 
                or lease transferred under paragraph (1), the United 
                States shall be released from further obligation under 
                such contract, agreement, or lease, except that such 
                action shall not release the United States from 
                obligations arising under such contract, agreement, or 
                lease prior to such time.''.
    (c) Pricing.--Section 1402 (42 U.S.C. 2297c-1) is amended to read 
as follows:

``SEC. 1402. PRICING.

    ``The Corporation shall establish prices for its products, 
materials, and services provided to customers on a basis that will 
allow it to attain the normal business objectives of a profitmaking 
corporation.''.
    (d) Leasing of Gaseous Diffusion Facilities of Department.--
Effective on the privatization date (as defined in section 1201(13) of 
the Atomic Energy Act of 1954), section 1403 (42 U.S.C. 2297c-2) is 
amended by adding at the end the following:
    ``(h) Low-Level Radioactive Waste and Mixed Waste.--
            ``(1) Responsibility of the department; costs.--
                    ``(A) With respect to low-level radioactive waste 
                and mixed waste generated by the Corporation as a 
                result of the operation of the facilities and related 
                property leased by the Corporation pursuant to 
                subsection (a) or as a result of treatment of such 
                wastes at a location other than the facilities and 
                related property leased by the Corporation pursuant to 
                subsection (a) the Department, at the request of the 
                Corporation, shall--
                            ``(i) accept for treatment or disposal of 
                        all such wastes for which treatment or disposal 
                        technologies and capacities exist, whether 
                        within the Department or elsewhere; and
                            ``(ii) accept for storage (or ultimately 
                        treatment or disposal) all such wastes for 
                        which treatment and disposal technologies or 
                        capacities do not exist, pending development of 
                        such technologies or availability of such 
                        capacities for such wastes.
                    ``(B) All low-level wastes and mixed wastes that 
                the Department accepts for treatment, storage, or 
                disposal pursuant to subparagraph (A) shall, for the 
                purpose of any permits, licenses, authorizations, 
                agreements, or orders involving the Department and 
                other Federal agencies or State or local governments, 
                be deemed to be generated by the Department and the 
                Department shall handle such wastes in accordance with 
                any such permits, licenses, authorizations, agreements, 
                or orders. The Department shall obtain any additional 
                permits, licenses, or authorizations necessary to 
                handle such wastes, shall amend any such agreements or 
                orders as necessary to handle such wastes, and shall 
                handle such wastes in accordance therewith.
                    ``(C) The Corporation shall reimburse the 
                Department for the treatment, storage, or disposal of 
                low-level radioactive waste or mixed waste pursuant to 
                subparagraph (A) in an amount equal to the Department's 
                costs but in no event greater than an amount equal to 
                that which would be charged by commercial, State, 
                regional, or interstate compact entities for treatment, 
                storage, or disposal of such waste.
            ``(2) Agreements with other persons.--The Corporation may 
        also enter into agreements for the treatment, storage, or 
        disposal of low-level radioactive waste and mixed waste 
        generated by the Corporation as a result of the operation of 
        the facilities and related property leased by the Corporation 
        pursuant to subsection (a) with any person other than the 
        Department that is authorized by applicable laws and 
        regulations to treat, store, or dispose of such wastes.''.
    (e) Liabilities.--
            (1) Subsection (a) of section 1406 (42 U.S.C. 2297c-5(a)) 
        is amended--
                    (A) by inserting ``and Privatization'' after 
                ``Transition'' in the heading; and
                    (B) by adding at the end the following: ``As of the 
                privatization date, all liabilities attributable to the 
                operation of the Corporation from the transition date 
                to the privatization date shall be direct liabilities 
                of the United States.''.
            (2) Subsection (b) of section 1406 (42 U.S.C. 2297c-5(b)) 
        is amended--
                    (A) by inserting ``and Privatization'' after 
                ``Transition'' in the heading; and
                    (B) by adding at the end the following: ``As of the 
                privatization date, any judgment entered against the 
                Corporation imposing liability arising out of the 
                operation of the Corporation from the transition date 
                to the privatization date shall be considered a 
                judgment against the United States.''.
            (3) Subsection (d) of section 1406 (42 U.S.C. 2297c-5(d)) 
        is amended--
                    (A) by inserting ``and Privatization'' after 
                ``Transition'' in the heading; and
                    (B) by striking ``the transition date'' and 
                inserting ``the privatization date (or, in the event 
                the privatization date does not occur, the transition 
                date)''.
    (f) Transfer of Uranium.--Title II (42 U.S.C. 2297 et seq.) is 
amended by redesignating section 1408 as section 1409 and by inserting 
after section 1407 the following:

``SEC. 1408. TRANSFER OF URANIUM.

    ``The Secretary may, before the privatization date, transfer to the 
Corporation without charge raw uranium, low-enriched uranium, and 
highly enriched uranium.''.

SEC. 6. PRIVATIZATION OF THE CORPORATION.

    (a) Establishment of Private Corporation.--Chapter 25 (42 U.S.C. 
2297d et seq.) is amended by adding at the end the following new 
section:

``SEC. 1503. ESTABLISHMENT OF PRIVATE CORPORATION.

    ``(a) Establishment.--
            ``(1) In general.--In order to facilitate privatization, 
        the Corporation may provide for the establishment of a private 
        corporation organized under the laws of any of the several 
        States. Such corporation shall have among its purposes the 
        following:
                    ``(A) To help maintain a reliable and economical 
                domestic source of uranium enrichment services.
                    ``(B) To undertake any and all activities as 
                provided in its corporate charter.
            ``(2) Authorities.--The corporation established pursuant to 
        paragraph (1) shall be authorized to--
                    ``(A) enrich uranium, provide for uranium to be 
                enriched by others, or acquire enriched uranium 
                (including low-enriched uranium derived from highly 
                enriched uranium);
                    ``(B) conduct, or provide for conducting, those 
                research and development activities related to uranium 
                enrichment and related processes and activities the 
                corporation considers necessary or advisable to 
                maintain itself as a commercial enterprise operating on 
                a profitable and efficient basis;
                    ``(C) enter into transactions regarding uranium, 
                enriched uranium, or depleted uranium with--
                            ``(i) persons licensed under section 53, 
                        63, 103, or 104 in accordance with the licenses 
                        held by those persons;
                            ``(ii) persons in accordance with, and 
                        within the period of, an agreement for 
                        cooperation arranged under section 123; or
                            ``(iii) persons otherwise authorized by law 
                        to enter into such transactions;
                    ``(D) enter into contracts with persons licensed 
                under section 53, 63, 103, or 104, for as long as the 
                corporation considers necessary or desirable, to 
                provide uranium or uranium enrichment and related 
                services;
                    ``(E) enter into contracts to provide uranium or 
                uranium enrichment and related services in accordance 
                with, and within the period of, an agreement for 
                cooperation arranged under section 123 or as otherwise 
                authorized by law; and
                    ``(F) take any and all such other actions as are 
                permitted by the law of the jurisdiction of 
                incorporation of the corporation.
            ``(3) Transfer of assets.--For purposes of implementing the 
        privatization, the Corporation may transfer some or all of its 
        assets and obligations to the corporation established pursuant 
        to this section, including--
                    ``(A) all of the Corporation's assets, including 
                all contracts, agreements, and leases, including all 
                uranium enrichment contracts and power purchase 
                contracts;
                    ``(B) all funds in accounts of the Corporation held 
                by the Treasury or on deposit with any bank or other 
                financial institution;
                    ``(C) all of the Corporation's rights, duties, and 
                obligations, accruing subsequent to the privatization 
                date, under the power purchase contracts covered by 
                section 1401(b)(2)(B); and
                    ``(D) all of the Corporation's rights, duties, and 
                obligations, accruing subsequent to the privatization 
                date, under the lease agreement between the Department 
                and the Corporation executed by the Department and the 
                Corporation pursuant to section 1403.
            ``(4) Merger or consolidation.--For purposes of 
        implementing the privatization, the Corporation may merge or 
        consolidate with the corporation established pursuant to 
subsection (a)(1) if such action is contemplated by the plan for 
privatization approved by the President under section 1502(b). The 
Board shall have exclusive authority to approve such merger or 
consolidation and to take all further actions necessary to consummate 
such merger or consolidation, and no action by or in respect of 
shareholders shall be required. The merger or consolidation shall be 
effected in accordance with, and have the effects of a merger or 
consolidation under, the laws of the jurisdiction of incorporation of 
the surviving corporation, and all rights and benefits provided under 
this title to the Corporation shall apply to the surviving corporation 
as if it were the Corporation.
            ``(5) Tax treatment of privatization.--
                    ``(A) Transfer of assets or merger.--No income, 
                gain, or loss shall be recognized by any person by 
                reason of the transfer of the Corporation's assets to, 
                or the Corporation's merger with, the corporation 
                established pursuant to subsection (a)(1) in connection 
                with the privatization.
                    ``(B) Cancellation of debt and common stock.--No 
                income, gain, or loss shall be recognized by any person 
                by reason of any cancellation of any obligation or 
                common stock of the Corporation in connection with the 
                privatization.
    ``(b) OSHA Requirements.--For purposes of the regulation of 
radiological and nonradiological hazards under the Occupational Safety 
and Health Act of 1970, the corporation established pursuant to 
subsection (a)(1) shall be treated in the same manner as other 
employers licensed by the Nuclear Regulatory Commission. Any 
interagency agreement entered into between the Nuclear Regulatory 
Commission and the Occupational Safety and Health Administration 
governing the scope of their respective regulatory authorities shall 
apply to the corporation as if the corporation were a Nuclear 
Regulatory Commission licensee.
    ``(c) Legal Status of Private Corporation.--
            ``(1) Not federal agency.--The corporation established 
        pursuant to subsection (a)(1) shall not be an agency, 
        instrumentality, or establishment of the United States 
        Government and shall not be a Government corporation or 
        Government-controlled corporation.
            ``(2) No recourse against united states.--Obligations of 
        the corporation established pursuant to subsection (a)(1) shall 
        not be obligations of, or guaranteed as to principal or 
        interest by, the Corporation or the United States, and the 
        obligations shall so plainly state.
            ``(3) No claims court jurisdiction.--No action under 
        section 1491 of title 28, United States Code, shall be 
        allowable against the United States based on the actions of the 
        corporation established pursuant to subsection (a)(1).
    ``(d) Board of Director's Election After Public Offering.--In the 
event that the privatization is implemented by means of a public 
offering, an election of the members of the board of directors of the 
Corporation by the shareholders shall be conducted before the end of 
the 1-year period beginning the date shares are first offered to the 
public pursuant to such public offering.
    ``(e) Adequate Proceeds.--The Secretary of Energy shall not allow 
the privatization of the Corporation unless before the sale date the 
Secretary determines that the estimated sum of the gross proceeds from 
the sale of the Corporation will be an adequate amount.''.
    (b) Ownership Limitations.--Chapter 25 (as amended by subsection 
(a)) is amended by adding at the end the following new section:

``SEC. 1504. OWNERSHIP LIMITATIONS.

    ``(a) Securities Limitation.--In the event that the privatization 
is implemented by means of a public offering, during a period of 3 
years beginning on the privatization date, no person, directly or 
indirectly, may acquire or hold securities representing more than 10 
percent of the total votes of all outstanding voting securities of the 
Corporation.
    ``(b) Application.--Subsection (a) shall not apply--
            ``(1) to any employee stock ownership plan of the 
        Corporation,
            ``(2) to underwriting syndicates holding shares for resale, 
        or
            ``(3) in the case of shares beneficially held for others, 
        to commercial banks, broker-dealers, clearing corporations, or 
        other nominees.
    ``(c) No director, officer, or employee of the Corporation may 
acquire any securities, or any right to acquire securities, of the 
Corporation--
            ``(1) in the public offering of securities of the 
        Corporation in the implementation of the privatization,
            ``(2) pursuant to any agreement, arrangement, or 
        understanding entered into before the privatization date, or
            ``(3) before the election of directors of the Corporation 
        under section 1503(d) on any terms more favorable than those 
        offered to the general public.''.
    (c) Exemption From Liability.--Chapter 25 (as amended by subsection 
(b)) is amended by adding at the end the following new section:

``SEC. 1505. EXEMPTION FROM LIABILITY.

    ``(a) In General.--No director, officer, employee, or agent of the 
Corporation shall be liable, for money damages or otherwise, to any 
party if, with respect to the subject matter of the action, suit, or 
proceeding, such person was fulfilling a duty, in connection with any 
action taken in connection with the privatization, which such person in 
good faith reasonably believed to be required by law or vested in such 
person.
    ``(b) Exception.--The privatization shall be subject to the 
Securities Act of 1933 and the Securities Exchange Act of 1934. The 
exemption set forth in subsection (a) shall not apply to claims arising 
under such Acts or under the Constitution or laws of any State, 
territory, or possession of the United States relating to transactions 
in securities, which claims are in connection with a public offering 
implementing the privatization.''.
    (d) Resolution of Certain Issues.--Chapter 25 (as amended by 
subsection (c)) is amended by adding at the end the following new 
section:

``SEC. 1506. RESOLUTION OF CERTAIN ISSUES.

    ``(a) Corporation Actions.--Notwithstanding any provision of any 
agreement to which the Corporation is a party, the Corporation shall 
not be considered to be in breach, default, or violation of any such 
agreement because of any provision of this chapter or any action the 
Corporation is required to take under this chapter.
    ``(b) Right To Sue Withdrawn.--The United States hereby withdraws 
any stated or implied consent for the United States, or any agent or 
officer of the United States, to be sued by any person for any legal, 
equitable, or other relief with respect to any claim arising out of, or 
resulting from, acts or omissions under this chapter.''.
    (e) Application of Privatization Proceeds.--Chapter 25 (as amended 
by subsection (d)) is amended by adding at the end the following new 
section:

``SEC. 1507. APPLICATION OF PRIVATIZATION PROCEEDS.

    ``The proceeds from the privatization shall be included in the 
budget baseline required by the Balanced Budget and Emergency Deficit 
Control Act of 1985 and shall be counted as an offset to direct 
spending for purposes of section 252 of such Act, notwithstanding 
section 257(e) of such Act.''.
    (f) Conforming Amendment.--The table of contents for chapter 25 is 
amended by inserting after the item for section 1502 the following:

``Sec. 1503. Establishment of Private Corporation.
``Sec. 1504. Ownership Limitations.
``Sec. 1505. Exemption from Liability.
``Sec. 1506. Resolution of Certain Issues.
``Sec. 1507. Application of Privatization Proceeds.''.
    (g) Section 193 (42 U.S.C. 2243) is amended by adding at the end 
the following:
    ``(f) Limitation.--If the privatization of the United States 
Enrichment Corporation results in the Corporation being--
            ``(1) owned, controlled, or dominated by a foreign 
        corporation or a foreign government, or
            ``(2) otherwise inimical to the common defense or security 
        of the United States,
any license held by the Corporation under sections 53 and 63 shall be 
terminated.''.
    (h) Period for Congressional Review.--Section 1502(d) (42 U.S.C. 
2297d-1(d)) is amended by striking ``less than 60 days after 
notification of the Congress'' and inserting ``less than 60 days after 
the date of the report to Congress by the Comptroller General under 
subsection (c)''.

SEC. 7. PERIODIC CERTIFICATION OF COMPLIANCE.

    Section 1701(c)(2) (42 U.S.C. 2297f(c)(2)) is amended by striking 
``Annual application for certificate of compliance.--The Corporation 
shall apply at least annually to the Nuclear Regulatory Commission for 
a certificate of compliance under paragraph (1).'' and inserting 
``Periodic application for certificate of compliance.--The Corporation 
shall apply to the Nuclear Regulatory Commission for a certificate of 
compliance under paragraph (1) periodically, as determined by the 
Nuclear Regulatory Commission, but not less than every 5 years.''.

SEC. 8. LICENSING OF OTHER TECHNOLOGIES.

    Subsection (a) of section 1702 (42 U.S.C. 2297f-1(a)) is amended by 
striking ``other than'' and inserting ``including''.

SEC. 9. CONFORMING AMENDMENTS.

    (a) Repeals in Atomic Energy Act of 1954 as of the Privatization 
Date.--
            (1) Repeals.--As of the privatization date (as defined in 
        section 1201(13) of the Atomic Energy Act of 1954), the 
        following sections (as in effect on such privatization date) of 
        the Atomic Energy Act of 1954 are repealed:
                    (A) Section 1202.
                    (B) Sections 1301 through 1304.
                    (C) Sections 1306 through 1316.
                    (D) Sections 1404 and 1405.
                    (E) Section 1601.
                    (F) Sections 1603 through 1607.
            (2) Conforming amendment.--The table of contents of such 
        Act is amended by repealing the items referring to sections 
        repealed by paragraph (1).
    (b) Statutory Modifications.--As of such privatization date, the 
following shall take effect:
            (1) For purposes of title I of the Atomic Energy Act of 
        1954, all references in such Act to the ``United States 
        Enrichment Corporation'' shall be deemed to be references to 
        the corporation established pursuant to section 1503 of the 
        Atomic Energy Act of 1954 (as added by section 6(a)).
            (2) Section 1018(1) of the Energy Policy Act of 1992 (42 
        U.S.C. 2296b-7(1)) is amended by striking ``the United States'' 
        and all that follows through the period and inserting ``the 
        corporation referred to in section 1201(4) of the Atomic Energy 
        Act of 1954.''.
            (3) Section 9101(3) of title 31, United States Code, is 
        amended by striking subparagraph (N), as added by section 
        902(b) of Public Law 102-486.
    (c) Revision of Section 1305.--As of such privatization date, 
section 1305 of the Atomic Energy Act of 1954 (42 U.S.C 2297b-4) is 
amended--
            (1) by repealing subsections (a), (b), (c), and (d), and
            (2) in subsection (e)--
                    (A) by striking the subsection designation and 
                heading,
                    (B) by redesignating paragraphs (1) and (2) (as 
                added by section 4(a)) as subsections (a) and (b) and 
                by moving the margins 2-ems to the left,
                    (C) by striking paragraph (3), and
                    (D) by redesignating paragraph (4) (as amended by 
                section 4(b)) as subsection (c), and by moving the 
                margins 2-ems to the left.
                                 <all>
HR 1216 RH----2
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