I

106TH CONGRESS

2D SESSION H. R. 4883

To authorize and direct the maintenance of a reliable and economic uranium

enrichment, conversion, and mining industry, to assure the nuclear nonproliferation objects of the United States, to provide for the deployment

of advanced uranium enrichment technology, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 18, 2000

Mr. STRICKLAND introduced the following bill; which was referred to the

Committee on Commerce

A BILL

To authorize and direct the maintenance of a reliable and

economic uranium enrichment, conversion, and mining

industry, to assure the nuclear non-proliferation objects

of the United States, to provide for the deployment of

advanced uranium enrichment technology, and for other

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘The Nuclear Fuel Reli5 ability Act of 2000’’.
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1 SEC. 2. FINDINGS.

2 The Congress finds and declares that—

3 (1) in authorizing the privatization of USEC,

4 Congress recognized that the activities conducted by

5 USEC included many public purposes and therefore

6 directed that privatization only proceed on condition

7 that privatization—

8 (A) provides for the long-term viability of

9 the Corporation, provides for the continuation

10 by the Corporation of the operation of the De11 partment of Energy’s gaseous diffusion plants,

12 provides for the protection of the public interest

13 in maintaining a reliable and economical domes14 tic source of uranium mining, enrichment and

15 conversion services, and, to the extent not in16 consistent with such purposes, secures the max17 imum proceeds to the United States;

18 (B) not result in the Corporation being

19 owned, controlled, or dominated by an alien, a

20 foreign corporation, or a foreign government;

21 (C) not be inimical to the health and safety

22 of the public or the common defense and secu23 rity; and

24 (D) provide reasonable assurance that ade25 quate enrichment capacity will remain available
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1 to meet the needs of the domestic electric utility

2 industry.

3 (2) In the period since privatization, it has be4 come evident that USEC, Inc. cannot assure the

5 protection and fulfillment of the public purposes that

6 were conditions and predicates to privatization.

7 USEC, Inc. has—

8 (A) announced that it will no longer pro9 vide for the continuation of both of the Depart10 ment of Energy’s gaseous diffusion plants and

11 will not deploy the low-cost AVLIS enrichment

12 technology that was a primary predicate for as13 suring its long term viability;

14 (B) engaged in activities, including the liq15 uidation of government provided inventories of

16 natural uranium and conversion services, that

17 impair the continued viability of the domestic

18 uranium conversion and mining industry;

19 (C) experienced increasing financial dif20 ficulties, including downgrade of its credit rat21 ing to below investment grade, and has indi22 cated that, in absence of additional Federal

23 support, it cannot deploy low cost enrichment

24 technology that will permit it to be competitive

25 in global markets;
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1 (D) has undertaken management decisions,

2 such as the payment of dividends in excess of

3 earnings and the repurchase of its publicly

4 traded stock, that has consumed large amounts

5 of its cash flow which has jeopardized the pub6 lic interest in maintaining a reliable and eco7 nomical domestic source enrichment service;

8 and

9 (E) has sought up to $200,000,000 in pub10 lic assistance as a condition for continuing to

11 serve as the Executive Agent under the Russian

12 HEU Agreement, and failed to demonstrate

13 that it will meet the core public interest obliga14 tions which it accepted as a condition to privat15 ization.

16 (3) The fulfillment of the public interest pur17 poses set out in the USEC Privatization Act and the

18 Energy and Policy Act of 1992 requires that—

19 (A) the United States, through a govern20 ment owned corporation, should reassume direct

21 responsibility for the energy security and na22 tional security purposes heretofore entrusted to

23 USEC, Inc.;
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1 (B) the United States shall determine the

2 best means to recapture the public interest pur3 poses and assets entrusted to USEC, Inc.;

4 (C) the United States Enrichment Enter5 prise, a government corporation, be established

6 to assume the energy security, national secu7 rity, and public interest purposes, together with

8 such assets and liabilities heretofore transferred

9 to USEC, Inc., as are required to fulfill such

10 purposes and such other public purposes as are

11 herein designated.

12 SEC. 3. DEFINITIONS.

13 In this Act:

14 (1) CORPORATION.—The term ‘‘corporation’’

15 means the USEE.

16 (2) EXECUTIVE AGENT AGREEMENT.—The

17 term ‘‘Executive Agent Agreement’’ refers to the

18 Agreement to administer the Russian HEU Agree19 ment on behalf of the United States.

20 (3) GASEOUS DIFFUSION PLANTS.—The term

21 ‘‘gaseous diffusion plants’’ means the Paducah Gas22 eous Diffusion Plant at Paducah, Kentucky and the

23 Portsmouth Gaseous Diffusion Plant at Piketon,

24 Ohio.
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1 (4) PRIVATIZATION.—The term ‘‘privatization’’

2 means the 1998 privatization of USEC pursuant to

3 the USEC Privatization Act.

4 (5) REFEDERALIZATION.—The term ‘‘refed5 eralization’’ means the process of taking back the

6 public interest purposes as well as those related to

7 energy and national security and the process of the

8 United States acquiring the ownership and assets of

9 the enrichment enterprise transferred to USEC, Inc.

10 under the USEC Privatization Act

11 (6) RUSSIAN HEU AGREEMENT.—The term

12 ‘‘Russian HEU Agreement’’ means the Agreement

13 between Government of the United States of Amer14 ica and the Government of the Russian Federation

15 Concerning the Disposition of Highly Enriched Ura16 nium Extracted from Nuclear Weapons, dated Feb17 ruary 18, 1993.

18 (7) SWU.—The term ‘‘SWU’’ means separative

19 work unit which is the level of effort required to in20 crease the concentration of U-235 in natural ura21 nium.

22 (8) TRANSFER DATE.—Date in which the sale

23 of USEC, Inc.’s assets are transferred to USEE.

24 (9) TRANSITION MANAGER.—The term ‘‘transi25 tion manager’’ means the chief executive responsible
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1 for the day-to-day operations of USEE before acqui2 sition of USEC, Inc.

3 (10) URANIUM ENRICHMENT.—The term ‘‘ura4 nium enrichment’’ means the separation of uranium

5 of a given isotopic content into 2 components, 1 hav6 ing a higher percentage of fissile isotope and 1 hav7 ing a lower percentage.

8 (11) USEC.—The term ‘‘USEC’’ means the

9 United States Enrichment Corporation, a govern10 ment corporation established by the Energy Policy

11 Act of 1992, the reestablishment of which is pro12 vided for by this Act.

13 (12) USEC, INC.—The term ‘‘USEC Inc.’’

14 means the private corporation established pursuant

15 to the USEC Privatization Act, Public Law 104–

16 134.

17 (13) USEE.—The term ‘‘USEE’’ means the

18 United States Enrichment Enterprise, the newly cre19 ated government-owned corporation which will refed20 eralize USEC, Inc. and carry out the purposes of

21 this Act.

22 SEC. 4. PLAN TO RECAPTURE PUBLIC PURPOSES AND AS23 SETS.

24 (a) PLAN.—Within 90 days of the date of enactment

25 of this Act, the Transition Manager and the Secretary of
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1 Energy, in consultation with the Secretary of State and

2 Secretary of the Treasury, shall prepare and present to

3 the President a plan for the reacquisition of 100 percent

4 of the stock or the net assets and liabilities of USEC, Inc.

5 The Secretary of Energy is authorized to secure the serv6 ices of an independent financial advisor, a transaction

7 manager, auditors, appraisers for valuation, and outside

8 legal counsel to assist in the development of the plan, the

9 performance of due diligence, and recommended pathways

10 for a transaction. The plan shall—

11 (1) identify and provide means to assure the

12 continued fulfillment of the public interest purposes

13 stated by Congress in the USEC Privatization Act

14 and Energy and Policy Act of 1992 in providing for

15 the privatization of USEC;

16 (2) recommend means to ensure that stock17 holders and creditors of USEC, Inc. will be entitled

18 to just compensation, not to exceed a 20 percent

19 premium to the market value of USEC, Inc.’s stock,

20 if it is traded on a listed exchange as of the date of

21 enactment of this Act;

22 (3) consider and analyze alternatives including

23 the use of tender offer and a negotiated transaction

24 with the Members of the Board of USEC, Inc., or
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1 retaining the services of a third party, as a means

2 of effectuating the transaction;

3 (4) evaluate the option of exchanging Treasury

4 obligations for USEC, Inc. corporate debt obliga5 tions, as a means of providing just compensation for

6 creditors;

7 (5) propose legislation required for the refed8 eralization of USEC, Inc. for submission to the Con9 gress, GAO and the President;

10 (6) prepare a fair market valuation for acquisi11 tion, except that the amount of any bonuses, com12 pensation, or severance in excess of one year’s an13 nual base salary for officers and directors of USEC,

14 Inc. shall be deducted to arrive at a net asset value

15 or fair market value and shall not be included as a

16 liability to be assumed by USEE or the United

17 States and any such excess liabilities shall be de18 ducted from compensation due shareholders of

19 USEC, Inc.

20 Within 30 days of the date of enactment of this Act, the

21 President shall accept or modify the plan provided or di22 rect its revision for resubmission to the Office of the Presi23 dent within 30 days. Congress shall be notified imme24 diately upon approving the plan.
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1 (b) PERIOD FOR CONGRESSIONAL REVIEW.—After

2 receiving the report under subsection (b), the Congress

3 shall have 30 days for review of the report and oversight

4 of the subject matter of the report.

5 (c) IMPLEMENTATION.—Upon the implementation of

6 the plan, the United States is authorized to take USEC,

7 Inc. and the Board of Directors of USEC, Inc. shall trans8 fer ownership of the stock and assets and obligations of

9 USEC, Inc., to USEE, the United States government cor10 poration established under section 6. The Executive Agen11 cy for the Russian HEU Agreement shall be transferred

12 to USEE at the time of transfer of ownership of USEC,

13 Inc., if it had not been placed within USEE earlier under

14 section 5.

15 (d) AUTHORIZATION OF EXPENDITURES.—For the

16 purposes of this section to transfer ownership of USEC,

17 Inc. and to execute USEE’s responsibilities under section

18 6, such sums as are necessary are authorized for deposit

19 in the United States Enrichment Enterprise Fund.

20 SEC. 5. RESUMPTION OF UNITED STATES CONTROL OVER

21 NATIONAL SECURITY PURPOSES.

22 (a) HEU AGREEMENT.—After USEE has been es23 tablished, the Secretary of Energy, in consultation with

24 the Secretary of State and the National Security Council,
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1 is authorized to terminate the Executive Agent Agreement

2 between the United States and USEC, Inc.

3 (b) TRANSFER.—If USEC, Inc. is terminated as Ex4 ecutive Agent, the responsibilities for performance as the

5 Executive Agent for the Russian HEU Agreement shall

6 be transferred to USEE, a government-corporation estab7 lished pursuant to section 6.

8 (c) CONTRACTS.—

9 (1) USEE shall be authorized to purchase,

10 store, or sell enriched uranium acquired pursuant to

11 the Russian HEU Agreement, and to fulfill contrac12 tual obligations under that Agreement between

13 USEC, Inc. and Tenex, and shall be authorized to

14 negotiate new contracts with Tenex for the purchase

15 of down blended HEU under that Agreement if such

16 contract is in the public interest.

17 (2) SUSPENSION AGREEMENT.—Nothing herein

18 shall authorize USEE to enter into any arrangement

19 for the implementation of the Russian HEU Agree20 ment that would require the importation of non21 HEU derived enrichment services, conversion serv22 ices, or uranium or otherwise render necessary an

23 amendment to the Agreement Suspending the Anti

24 Dumping Investigation on Uranium from the Rus25 sian Federation or any other country.
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1 (3) MATCHED SALES.—USEE will provide

2 USEC, Inc. with the right to match any offer re3 ceived for the SWU until the date of the transfer of

4 ownership of USEC, Inc. or 18 months, whichever

5 is later.

6 (d) AUTHORIZATION OF EXPENDITURES.—For the

7 purposes of USEE implementing the Russian HEU

8 Agreement and carrying out purposes in this section, such

9 sums as necessary are authorized for deposit in the United

10 States Enrichment Enterprise Fund.

11 SEC. 6. ESTABLISHMENT, PURPOSES, POWERS, AND ORGA12 NIZATION OF CORPORATION.

13 (a) IN GENERAL.—Within 60 days of the date of en14 actment of this Act, there is established a body corporate

15 to be known as the United States Enrichment Enterprise.

16 (b) GOVERNMENT CORPORATION.—The Corporation

17 shall be established as a wholly owned Government cor18 poration subject to chapter 91 of title 31, United States

19 Code (commonly referred to as the Government Corpora20 tion Control Act), except as otherwise provided in this

21 title.

22 (c) FEDERAL AGENCY.—The Corporation shall be an

23 agency and instrumentality of the United States.

24 (d) CORPORATE OFFICES.—The Corporation shall

25 maintain an office for the service of process and papers
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1 in the District of Columbia, and shall be deemed, for pur2 poses of venue in civil actions, to be a resident thereof.

3 The Corporation may establish offices in such other place

4 or places as it may deem necessary or appropriate in the

5 conduct of its business.

6 (e) PURPOSES OF THE CORPORATION.—

7 (1) To operate as a business enterprise on an

8 efficient basis, and to conduct the business as a self9 financing corporation after the deployment of ad10 vanced enrichment technology.

11 (2) To provide for the protection of the public

12 interest in maintaining a reliable and economical do13 mestic source of uranium mining, enrichment and

14 conversion services.

15 (3) To lease Department of Energy uranium

16 enrichment facilities, as needed, and to maintain the

17 continued operations of the gaseous diffusion plants

18 until advanced technology is successfully deployed,

19 and to lease DOE facilities at Portsmouth, Ohio or

20 Paducah, Kentucky for purposes of deploying ad21 vanced enrichment technology.

22 (4) To sell uranium and conversion services

23 from its inventories in a manner that will have no

24 material adverse impact on the domestic conversion

25 or mining industries, consistent with the restrictions
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1 contained in the USEC Privatization Act. USEE

2 may also acquire uranium for uranium enrichment,

3 low-enriched uranium for resale, and highly enriched

4 uranium for conversion into low-enriched uranium,

5 as needed.

6 (5) To market and sell its enriched uranium

7 and uranium enrichment and related services to—

8 (A) the Department of Energy for main9 taining a strategic reserve of low enriched ura10 nium suitable for use by commercial nuclear re11 actors;

12 (B) for government purposes; and

13 (C) domestic and foreign persons.

14 (6) To conduct research and development as re15 quired to meet business objectives for the purposes

16 of identifying, evaluating, improving, testing and de17 ploying alternative technologies for uranium enrich18 ment.

19 (7) To comply with laws to protect the public

20 health, safety, and the environment.

21 (8) To continue at all times to meet the objec22 tives of ensuring the Nation’s common defense and

23 security, including abiding by United States laws

24 and policies concerning special nuclear materials and
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1 nonproliferation of atomic weapons and other non2 peaceful uses of atomic energy.

3 (9) To take all other lawful actions in further4 ance of these purposes.

5 (f) POWERS OF THE CORPORATION.—In order to ac6 complish its purposes, the Corporation—

7 (1) shall, except as provided in this Act or other

8 applicable Federal law, have all the powers of a pri9 vate corporation incorporated under the District of

10 Columbia Business Corporation Act;

11 (2) shall have the priority of the United States

12 with respect to the payment of debts out of bank13 rupt, insolvent, and decedents’ estates;

14 (3) may obtain from the Administrator of Gen15 eral Services the services the Administrator is au16 thorized to provide agencies of the United States, on

17 the same basis as those services are provided to

18 other agencies of the United States;

19 (4) shall enrich uranium or acquire enriched

20 uranium (low-enriched uranium derived from highly

21 enriched uranium from the United States or Rus22 sia);

23 (5) may conduct, or provide for conducting,

24 those research, development, and deployment activi25 ties related to uranium enrichment and related proc-
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1 esses and activities which the Corporation considers

2 necessary or advisable to maintain the Corporation

3 as a commercial enterprise operating on an efficient

4 basis; and

5 (6) may enter into transactions regarding ura6 nium, enriched uranium, or depleted uranium with—

7 (A) persons licensed under section 53, 63,

8 103, or 104 of Atomic Energy Act of 1954 in

9 accordance with the licenses held by those per10 sons, for as long as the Corporation considers

11 necessary or desirable;

12 (B) persons in accordance with, and within

13 the period of, an agreement for cooperation ar14 ranged under section 123 of the Atomic Energy

15 Act of 1954; or

16 (C) persons otherwise authorized by law to

17 enter into such transactions;

18 (7) shall sell to the Department of Energy as

19 provided in this Act the amounts of uranium enrich20 ment and related services that the Department de21 termines from time to time are required for it to—

22 (A) carry out Presidential directions and

23 authorizations; and

24 (B) conduct other Department programs.
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1 SEC. 7. BOARD OF DIRECTORS.

2 (a) IN GENERAL.—The powers of the Corporation

3 are vested in the Board of Directors.

4 (b) APPOINTMENT.—The Board of Directors shall

5 consist of 7 individuals, to be appointed by the President

6 by and with the advice and consent of the Senate. The

7 President shall designate a Chairman of the Board from

8 among members of the Board.

9 (c) QUALIFICATIONS.—Members of the Board shall

10 be citizens of the United States. No member of the Board

11 shall be an employee of the Corporation or have any direct

12 financial relationship with the Corporation other than that

13 of being a member of the Board.

14 (d) TERMS.—

15 (1) IN GENERAL.—Except as provided in para16 graph (2), members of the Board shall serve 5 year

17 terms or until the election of a new Board of Direc18 tors, whichever comes first.

19 (2) INITIAL MEMBERS.—Of the members first

20 appointed to the Board—

21 (A) 2 shall be appointed for a 1-year term;

22 (B) 2 shall be appointed for a 2-year term;

23 (C) 1 shall be appointed for a 3-year term;

24 (D) 1 shall be appointed for a 4-year term;

25 and

26 (E) 1 shall be appointed for a 5-year term.
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1 The Board shall be composed of at least one person with

2 extensive background in nuclear non proliferation policy

3 or relations with Russia; one person with in-depth knowl4 edge of the uranium enrichment industry; one person who

5 resides in the state of Kentucky; one person who resides

6 in the state of Ohio; and one representative or designee

7 of a union representing workers at USEE’s facilities. At

8 least 2 Board representatives should have expertise in

9 technology development, chemistry, physics, or engineer10 ing.

11 (3) REAPPOINTMENT.—Members of the Board

12 may be reappointed by the President, by and with

13 the advice and consent of the Senate.

14 (e) VACANCIES.—Upon the occurrence of a vacancy

15 on the Board, the President by and with the advice and

16 consent of the Senate shall appoint an individual to fill

17 such vacancy for the remainder of the applicable term.

18 (f) MEETINGS AND QUORUM.—The Board shall meet

19 at any time pursuant to the call of the Chairman and as

20 provided by the bylaws of the Corporation, but not less

21 than quarterly. Five voting members of the Board shall

22 constitute a quorum. A majority of the Board shall adopt

23 and from time to time may amend bylaws for the oper24 ation of the Board.
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1 (g) POWERS.—The Board shall be responsible for

2 general management of the Corporation and shall have the

3 same authority, privileges, and responsibilities as the

4 board of directors of a private corporation incorporated

5 under the District of Columbia Business Corporation Act.

6 (h) COMPENSATION.—Members of the Board shall

7 serve on a part-time basis and shall receive per diem, when

8 engaged in the actual performance of Corporation duties,

9 plus reimbursement for travel, subsistence, and other nec10 essary expenses incurred in the performance of their du11 ties.

12 (i) MEMBERSHIP OF SECRETARY OF ENERGY,

13 TREASURY AND STATE.—The President may appoint the

14 Secretary of the Treasury, the Secretary of State, and the

15 Secretary of Energy, or the designee of such a Secretary,

16 to serve as a nonvoting, ex-officio member of the Board.

17 (j) CONFLICT OF INTEREST REQUIREMENTS.—No

18 director, officer, or other management level employee of

19 the Corporation may have a financial interest in any cus20 tomer, contractor, or competitor of the Corporation or in

21 any business that may be adversely affected by the success

22 of the Corporation.

23 SEC. 8. EMPLOYEES.

24 (a) APPOINTMENT.—The Board shall appoint such

25 officers and employees as are necessary for the transaction
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1 of its business. Within 30 days of the date of enactment

2 of this Act, the President shall appoint a Transition Man3 ager, consistent with section 16, until the Board of Direc4 tors can select officers and senior management.

5 (b) COMPENSATION, DUTIES, AND REMOVAL.—The

6 Board shall, consistent with section 5301 of title 5, United

7 States Code, fix the compensation of all officers and em8 ployees of the Corporation, define their duties, and provide

9 a system of organization to fix responsibility and promote

10 efficiency. Any officer or employee of the Corporation may

11 be removed in the discretion of the Board, except where

12 a process for arbitrating dismissals is provided in a collec13 tive bargaining agreement.

14 (c) APPLICABLE CRITERIA.—Officers and senior

15 management employees shall be appointed, promoted, and

16 assigned on the basis of merit and fitness, and other per17 sonnel actions shall be consistent with the principles of

18 fairness and due process consistent with the principles of

19 section 2301(b) of title 5, United States Code, relating

20 to merit system principles.

21 (d) TREATMENT OF PERSONS EMPLOYED PRIOR TO

22 REFEDERALIZATION.—Upon transfer of ownership of

23 USEC, Inc., USEE or a contractor to USEE shall offer

24 non-management employees of USEC, Inc. employment to

25 the extent that their jobs still exist, or they have rights
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1 to other employment under the terms of a collective bar2 gaining agreement.

3 (e) COMPENSATION, ETC.—Excluding officers and

4 senior management, the compensation, benefits, and other

5 terms and conditions of employment in effect immediately

6 prior to the refederalization date shall remain in effect for

7 120 days after the date of refederalization, after which

8 the Board of Directors shall establish personnel policies.

9 (f) EMPLOYEE PROTECTIONS FOR CURRENT AND

10 FORMER EMPLOYEES AT THE GASEOUS DIFFUSION

11 PLANTS.—

12 (1) IN GENERAL.—It is the purpose of this sub13 section to ensure that the establishment and oper14 ations of the Corporation pursuant to this section

15 shall not result in any adverse effects on the employ16 ment rights, wages, or benefits of employees at the

17 gaseous diffusion plants, that are operated, directly

18 or under contract, in the performance of the func19 tions vested in the Corporation.

20 (2) APPLICABILITY OF EXISTING COLLECTIVE

21 BARGAINING AGREEMENTS.—Any employer (includ22 ing the Corporation, or a contractor) engaged in the

23 management, operations and security at a facility

24 described in paragraph (1) shall abide by the terms

25 of a collective bargaining agreement in effect on the
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1 date of transfer of ownership of USEC, Inc., at each

2 individual facility until the date on which a new bar3 gaining agreement is signed. If no agreement is in

4 effect, the terms and conditions of the expired agree5 ment shall remain in effect until the parties conclude

6 a new collective bargaining agreement.

7 (3) APPLICABILITY OF LABOR LAWS.—Notwith8 standing any other provision of law, the employees

9 of USEE or a contractor to USEE shall be consid10 ered employees subject to the National Labor Rela11 tions Act (29 U.S.C. 151 et seq.), and USEE shall

12 be considered an employer subject to the National

13 Labor Relations Act, the Employee Retirement In14 come Security Act of 1974, the Fair Labor Stand15 ards Act of 1938, and the Americans with Disabil16 ities Act of 1990.

17 (4) TRANSFER OF BENEFITS.—Refederalization

18 shall not diminish the accrued, vested pension bene19 fits of employees of USEC, Inc. who participate in

20 defined benefit plans. USEC, Inc.’s pension plans

21 and retiree health care benefit plans and all of the

22 assets held therein by these plans, including any ac23 crued surplus, shall be transferred to USEE or a

24 contractor to USEE immediately upon the transfer

25 of ownership of USEC, Inc. USEE or a contractor
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1 to USEE shall assume all liabilities for payment of

2 pensions and retiree health care benefits for eligible

3 employees who separated from employment with

4 USEC, Inc. prior to the transfer of ownership of

5 USEC, Inc. Employees who transfer from USEC,

6 Inc. to USEE shall retain accrued service credits for

7 purposes of vacation, seniority, 401(k) benefit plans,

8 retiree health care benefits, and pensions. USEC,

9 Inc. shall transfer the assets of all employee benefits

10 plans to USEE or a contractor to USEE imme11 diately upon the transfer of ownership of USEC,

12 Inc. including 401(k) savings plans.

13 (5) GAS CENTRIFUGE ENRICHMENT PLANTS.—

14 USEE or contractors retained by USEE shall, when

15 hiring employees to manufacture or operate and

16 maintain gas centrifuge or other advanced enrich17 ment technology at the Department of Energy’s

18 Portsmouth, Ohio or Paducah, Kentucky facility,

19 provide a right of first refusal to qualified or

20 qualifiable individuals who are displaced or facing

21 displacement from employment at the gaseous diffu22 sion plants. Costs for training and retraining shall

23 be provided through the Department of Energy Of24 fice of Worker and Community Transition. USEE or

25 its contractor performing operations, maintenance,
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1 or security at a gas centrifuge facility shall, to the

2 extent permissible, provide substantially equivalent

3 wages and benefits to operations, maintenance, and

4 security employees, assure pension and retiree health

5 care benefit continuity, and recognize the incumbent

6 bargaining representative for operations, mainte7 nance, or security work to the extent permissible by

8 law.

9 (6) PRIVATE RIGHT OF ACTION.—Any suit al10 leging a violation of any provision of subsections (d)

11 and (e), to the extent it does not allege a violation

12 of the National Labor Relations Act, may be

13 brought in any district court of the United States

14 having jurisdiction over the parties, without regard

15 to the amount in controversy or the citizenship of

16 the parties. Any suit alleging a violation of an agree17 ment between an employer and a labor organization

18 shall be brought in accordance with section 301 of

19 the Labor Management Relations Act (29 U.S.C.

20 185).

21 SEC. 9. URANIUM TRANSFERS AND SALES.

22 (a) CONVERSION COMPONENT.—Section 3112(b)(8)

23 of the USEC Privatization Act (42 U.S.C. 2297h–

24 10(b)(8)) is amended to read as follows:
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1 ‘‘(8) The conversion component of the uranium

2 hexafluoride delivered to the Russian Executive Agent

3 under paragraph (3) or auctioned pursuant to paragraph

4 (4) shall be subject to the restrictions of paragraph (5)

5 as applied to equivalent amounts of uranium

6 hexafluoride.’’.

7 (b) SALES PRICES.—Section 3112(c) of the USEC

8 Privatization Act (42 U.S.C. 2297h–10(c)) is amended by

9 adding at the end the following:

10 ‘‘(3) Any or all U308 or conversion services contained

11 in uranium hexafluoride transferred under paragraph (1)

12 shall be sold at prices not less than the average domestic

13 fair market value of such products. This value is deemed

14 to be equivalent to the average domestic cost of production

15 as of the date of enactment of this paragraph. Where a

16 combination of such products is to be sold as in uranium

17 hexafluoride or enriched uranium product, the prices allo18 cated to each of the components in the respective trans19 action shall be in the same ratio as the ratio of United

20 States published spot market prices for U308, conversion

21 and separative work units, as applicable, as prevailed at

22 the date of enactment of this paragraph.’’.

23 (c) DOMESTIC FAIR MARKET VALUE.—Section

24 3112(d)(2) of the USEC Privatization Act (42 U.S.C.

25 2297h–10(d)(2)) is amended by striking ‘‘, and’’ at the
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1 end of subparagraph (B) and inserting a comma, by strik2 ing the period at the end of subparagraph (C) and insert3 ing ‘‘, and’’, and by adding at the end the following:

4 ‘‘(D) the price at which the material is sold

5 shall not be less than the domestic fair market value

6 prevailing as of the date of enactment of this sub7 paragraph. This value is deemed to be the average

8 cost of production as of such date. If this material

9 is sold as uranium hexafluoride or enriched uranium

10 product, the component prices shall be allocated in

11 the same ratio as prevailed in published prices as of

12 such date.’’.

13 SEC. 10. AUDITS.

14 (a) INDEPENDENT AUDITS.—

15 (1) IN GENERAL.—The financial statements of

16 the Corporation shall be prepared in accordance with

17 generally accepted accounting principles and shall be

18 audited annually by an independent certified public

19 accountant in accordance with auditing standards

20 issued by the Comptroller General. Such auditing

21 standards shall be consistent with the private sec22 tor’s generally accepted auditing standards.

23 (2) REVIEW BY GAO.—The Comptroller General

24 may review any audit of the Corporation’s financial

25 statements conducted under paragraph (1). The
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•HR 4883 IH

1 Comptroller General shall report to the Congress

2 and the Corporation the results of any such review

3 and shall include in such report appropriate rec4 ommendations.

5 (b) GAO AUDITS.—

6 (1) IN GENERAL.—The Comptroller General

7 may audit the financial statements of the Corpora8 tion for any year in the manner provided in sub9 section (a)(1).

10 (2) REIMBURSEMENT BY CORPORATION.—The

11 Corporation shall reimburse the Comptroller General

12 for the full cost of any audit conducted under this

13 subsection, as determined by the Comptroller Gen14 eral.

15 (c) AVAILABILITY OF BOOKS AND RECORDS.—All

16 books, accounts, financial records, reports, files, papers,

17 and other property belonging to or in use by the Corpora18 tion and its auditor that the Comptroller General con19 siders necessary to the performance of any audit or review

20 under this section shall be made available to the Comp21 troller General.

22 (d) TREATMENT OF GAO AUDITS.—Activities the

23 Comptroller General conducts under this section shall be

24 in lieu of any other audit of the financial transactions of

25 the Corporation the Comptroller General is required to
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•HR 4883 IH

1 make under chapter 91 of title 31, United States Code,

2 or other law.

3 SEC. 11. ANNUAL REPORTS.

4 (a) IN GENERAL.—The Corporation shall prepare

5 and submit an annual report of its activities to the Presi6 dent and the Congress. This report shall contain—

7 (1) a general description of the Corporation’s

8 operations;

9 (2) a summary of the Corporation’s operating

10 and financial performance, including an explanation

11 of the decision to pay or not pay dividends;

12 (3) copies of audit reports;

13 (4) the information required under regulations

14 issued under section 13 of the Securities Exchange

15 Act of 1934 (15 U.S.C. 78m); and

16 (5) an identification and assessment of any im17 pairment of capital or ability of the Corporation to

18 comply with this Act.

19 (b) DEADLINE.—The report shall be completed not

20 later than 120 days following the close of each of the Cor21 poration’s fiscal years and shall accurately reflect the fi22 nancial position of the Corporation at fiscal year end.

23 SEC. 12. ACCOUNTS.

24 (a) ESTABLISHMENT OF UNITED STATES ENRICH25 MENT ENTERPRISE FUND.—There is established in the
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•HR 4883 IH

1 Treasury of the United States a revolving fund, to be

2 known as the ‘‘United States Enrichment Enterprise

3 Fund’’, which shall be available to the Corporation, with4 out need for further appropriation and without fiscal year

5 limitation, for carrying out its purposes, functions, and

6 powers, and which shall not be subject to apportionment

7 under subchapter II of chapter 15 of title 31, United

8 States Code. Such fund shall accrue interest on balances

9 by investing in short term debt securities of the United

10 States.

11 (b) TRANSFER OF UNEXPENDED BALANCES.—On

12 the transfer date, all cash reserves and short term debt

13 instruments on the books of and owned by USEC, Inc.

14 shall be deposited in the Fund.

15 SEC. 13. AUTHORITY TO ISSUE DEBT OBLIGATIONS FOR DE16 PLOYMENT OF NEW URANIUM ENRICHMENT

17 FACILITIES.

18 (a) ISSUANCE.—

19 (1) IN GENERAL.—The Corporation may issue

20 and sell bonds, notes, and other evidences of indebt21 edness (collectively referred to in this title as

22 ‘bonds’), for the purpose of constructing new ura23 nium enrichment facilities or conducting directly re24 lated preconstruction activities.
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•HR 4883 IH

1 (2) USE OF REVENUES.—The Corporation may

2 pledge and use its revenues for payment of the prin3 cipal of and interest on its bonds, for their purchase

4 or redemption, and for other purposes incidental to

5 these functions, including creation of reserve funds

6 and other funds that may be similarly pledged and

7 used.

8 (3) AGREEMENTS WITH HOLDERS AND TRUST9 EES.—The Corporation may enter into binding cov10 enants with the holders and trustees of its bonds

11 with respect to—

12 (A) the establishment of reserve and other

13 funds;

14 (B) stipulations concerning the subsequent

15 issuance of bonds; and

16 (C) other matters not inconsistent with

17 this Act; that the Corporation determines nec18 essary or desirable to enhance the marketability

19 of the bonds.

20 (b) TERMS AND CONDITIONS.—

21 (1) NEGOTIABLE; MATURITY.—Bonds issued by

22 the Corporation under this section shall be nego23 tiable instruments unless otherwise specified in the

24 bond and shall mature not more than 50 years after

25 their date of issuance.
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1 (2) ROLE OF SECRETARY OF THE TREASURY.—

2 (A) RIGHT OF DISAPPROVAL.—The Cor3 poration may set the terms and conditions of

4 bonds issued under this section, subject to dis5 approval of such terms and conditions by the

6 Secretary of the Treasury within 5 days after

7 the Secretary of the Treasury is notified of the

8 following terms and conditions of the bonds:

9 (i) Their forms and denominations.

10 (ii) The times, amounts, and prices at

11 which they are sold.

12 (iii) Their rates of interest.

13 (iv) The terms at which they may be

14 redeemed by the Corporation before matu15 rity.

16 (v) The priority of their claims on the

17 Corporation’s net revenues with respect to

18 principal and interest payments.

19 (vi) Any other terms and conditions.

20 (B) INAPPLICABILITY OF RIGHT TO PRE21 SCRIBE TERMS.—Section 9108(a) of title 31,

22 United States Code, shall not apply to the Cor23 poration.

24 (d) INAPPLICABILITY OF SECURITIES REQUIRE25 MENTS.—The Corporation shall be considered an execu-
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•HR 4883 IH

1 tive department of the United States for purposes of sec2 tion 3(c) of the Securities Exchange Act of 1934 (15

3 U.S.C. 78c(c)).

4 (e) APPLICABILITY OF FFB.—The Corporation may

5 issue or sell bonds to the Federal Financing Bank, with

6 the concurrence of the Secretary of Energy and the Sec7 retary of Treasury, for purposes of purchasing equipment

8 or constructing uranium enrichment facilities in Ports9 mouth, Ohio and Paducah, Kentucky.

10 SEC. 14. EXEMPTION FROM TAXATION AND PAYMENTS IN

11 LIEU OF TAXES.

12 (a) EXEMPTION FROM TAXATION.—In order to

13 render financial assistance to those States and localities

14 in which the facilities of the Corporation are located, the

15 Corporation shall, beginning in fiscal year 2001, make

16 payments to State and local governments as provided in

17 this section. These payments shall be in lieu of any and

18 all State and local taxes on the real and personal property

19 of the Corporation. All property of the Corporation is ex20 pressly exempted from taxation in any manner or form

21 by any State, county, or other local government entity in22 cluding State, county, or other local government sales tax.

23 (b) PAYMENTS IN LIEU OF TAXES.—Beginning in

24 fiscal year 2001, the Corporation shall make annual pay25 ments, in amounts determined by the Corporation to be
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•HR 4883 IH

1 fair and reasonable, to the State and local governmental

2 agencies having tax jurisdiction in any area where facili3 ties of the Corporation are located. In making these deter4 minations, the Corporation shall be guided by the fol5 lowing criteria:

6 (1) The Corporation shall take into account the

7 customs and practices prevailing in the area with re8 spect to appraisal, assessment, and classification of

9 industrial property and any special considerations

10 extended to large-scale industrial operations.

11 (2) The payment made to any taxing authority

12 for any period shall not be less than the payments

13 that would have been made to the taxing authority

14 for the same period by USEC, Inc. with respect to

15 property that has been transferred to USEE and

16 that would have been attributable to the ownership,

17 management, operation, and maintenance of the De18 partment’s uranium enrichment facilities, applying

19 the laws and policies prevailing immediately prior to

20 the transition date.

21 (c) TIME OF PAYMENTS.—Payments shall be made

22 by the Corporation at the time when payments of taxes

23 by taxpayers to each taxing authority are due and payable.
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1 (d) DETERMINATION OF AMOUNT DUE.—The deter2 mination by the Corporation of the amounts due under

3 this section shall be final and conclusive.

4 SEC. 15. COOPERATION WITH OTHER AGENCIES.

5 The Corporation may request to use on a reimburs6 able basis the available services, equipment, personnel, and

7 facilities of agencies of the United States, and on a similar

8 basis may cooperate with such agencies in the establish9 ment and use of services, equipment, and facilities of the

10 Corporation. The Corporation may confer with and avail

11 itself of the cooperation, services, records, and facilities

12 of State, territorial, municipal, or other local agencies.

13 SEC. 16. APPLICABILITY OF CERTAIN FEDERAL LAWS.

14 (a) ANTITRUST LAWS.—The Corporation shall con15 duct its activities in a manner consistent with the policies

16 expressed in the following antitrust laws:

17 (1) The Sherman Act (15 U.S.C. 1–7).

18 (2) The Clayton Act (15 U.S.C. 12–27).

19 (3) Sections 73 and 74 of the Wilson Tariff Act

20 (15 U.S.C. 8 and 9).

21 (b) ENVIRONMENTAL LAWS.—The Corporation shall

22 be subject to, and comply with, all Federal and State,

23 interstate, and local environmental laws and requirements,

24 both substantive and procedural, in the same manner, and

25 to the same extent, as any person who is subject to such
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•HR 4883 IH

1 laws and requirements. For purposes of enforcing any

2 such law or substantive or procedural requirements (in3 cluding any injunctive relief, administrative order, or ad4 ministrative penalty or fine) against the Corporation, the

5 United States expressly waives any immunity otherwise

6 applicable to the Corporation. For the purposes of this

7 subsection, the term ‘‘person’’ means an individual, trust,

8 firm, joint stock company, corporation, partnership, asso9 ciation, State, municipality, or political subdivision of a

10 State.

11 (c) OSHA REQUIREMENTS.—Notwithstanding sec12 tions 3(5), 4(b)(1), and 19 of the Occupational Safety and

13 Health Act of 1970 (29 U.S.C. 652(5), 653(b)(1), and

14 668)), the Corporation shall be subject to, and comply

15 with, such Act and all regulations and standards promul16 gated thereunder in the same manner, and to the same

17 extent, as an employer is subject to such Act. For the pur18 poses of enforcing such Act (including any injunctive re19 lief, administrative order, or civil, administrative, or crimi20 nal penalty or fine) against the Corporation, the United

21 States expressly waives any immunity otherwise applicable

22 to the Corporation.

23 (d) LABOR STANDARDS.—The Act of March 3, 1931

24 (known as the Davis-Bacon Act) (40 U.S.C. 276a et seq.)

25 and the Service Contract Act of 1965 (41 U.S.C. 351 et
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•HR 4883 IH

1 seq.) shall apply to the Corporation. All laborers and me2 chanics employed on the construction, alteration, or repair

3 of projects funded, in whole or in part, by the Corporation

4 shall be paid wages at rates not less than those prevailing

5 on projects of a similar character in the locality as deter6 mined by the Secretary of Labor in accordance with such

7 Act of March 3, 1931. The Secretary of Labor shall have,

8 with respect to the labor standards specified in this sub9 section, the authority and functions set forth in Reorga10 nization Plan Numbered 14 of 1950 (15 F.R. 3176, 64

11 Stat. 1267) and the Act of June 13, 1934 (40 U.S.C.

12 276c). Determinations made under the Act of March 3,

13 1931, shall not be used by USEE to determine whether

14 to subcontract contract or self perform work activities, nor

15 shall such determination be used to allocate or select any

16 workforce for any covered work.

17 (e) ENERGY REORGANIZATION ACT REQUIRE18 MENTS.—The Corporation is subject to the provisions of

19 section 210 of the Energy Reorganization Act of 1974 (42

20 U.S.C. 5850) to the same extent as an employer subject

21 to such section, and, with respect to the operation of the

22 facilities leased by the Corporation, section 206 of the En23 ergy Reorganization Act of 1974 (42 U.S.C. 5846) shall

24 apply to the directors and officers of the Corporation.
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•HR 4883 IH

1 (f) EXEMPTION FROM FEDERAL PROPERTY RE2 QUIREMENTS.—The Corporation shall not be subject to

3 the Federal Property and Administrative Services Act of

4 1949 (41 U.S.C. 471 et seq.).

5 SEC. 17. CONTROL OF INFORMATION.

6 (a) IN GENERAL.—Except as provided in subsection

7 (b), the Corporation may protect trade secrets and com8 mercial or financial information to the same extent as a

9 privately owned corporation.

10 (b) OTHER APPLICABLE LAWS.—Section 552 of title

11 5, United States Code, shall apply to the Corporation, and

12 such information shall be subject to the applicable provi13 sions of law protecting the confidentiality of trade secrets

14 and business and financial information, including section

15 1905 of title 18, United States Code. Transcripts of the

16 Board of Directors’ meetings shall be made available to

17 the public in a public reading room at the USEE head18 quarters and upon request consistent with section 552 of

19 title 5, United States Code.

20 SEC. 18. TRANSITION.

21 (a) TRANSITION MANAGER.—Within 30 days after

22 the date of the enactment of this Act, the President shall

23 appoint a Transition Manager, who shall serve at the

24 pleasure of the President until a quorum of the Board has

25 been appointed and confirmed by the United States Sen-
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•HR 4883 IH

1 ate in accordance with section 7. The Transition Manager

2 shall be paid at the same rate as is paid a member of

3 the Cabinet under section 5312 of title 5, United States

4 Code, and shall then serve at the pleasure of the Board.

5 (b) POWERS.—

6 (1) IN GENERAL.—Until a quorum of the

7 Board has qualified, the Transition Manager shall

8 exercise the powers and duties of the Board.

9 SEC. 19. MARKETING AND CONTRACTING AUTHORITY.

10 (a) EXCLUSIVE MARKETING AGENT.—USEE shall

11 act as the exclusive marketing agent on behalf of the

12 United States Government for entering into contracts for

13 providing enriched uranium (including low-enriched ura14 nium derived from highly enriched uranium) and uranium

15 enrichment and related services. The Department may not

16 market enriched uranium (including low-enriched uranium

17 derived from highly enriched uranium) or uranium enrich18 ment and related services, after the transition date.

19 (b) TRANSFER OF CONTRACTS.—

20 (1) IN GENERAL.—Except as provided in para21 graph (2), all contracts, agreements, and leases be22 tween the Energy Department and USEC, Inc. in23 cluding all uranium enrichment contracts and power

24 purchase contracts, that have been executed before

25 the transition date and that relate to uranium en-
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•HR 4883 IH

1 richment and related services shall transfer to the

2 Corporation.

3 (2) NONTRANSFERABLE POWER CONTRACTS.—

4 If the Secretary of Energy determines that a power

5 purchase contract executed by the Department prior

6 to the transfer of ownership of USEC, Inc. date can7 not be transferred under its terms, the Secretary

8 may continue to receive power under the contract

9 and resell such power to the Corporation at cost.

10 (c) SALES OF SERVICES.—The USEE may only sell

11 uranium and conversion services from its inventories in

12 a manner that will have no material adverse impact on

13 the domestic conversion or mining industries, consistent

14 with the restrictions contained in the USEC Privatization

15 Act.

16 SEC. 20. PRICING.

17 (a) SERVICES PROVIDED TO COMMERCIAL CUS18 TOMERS.—The Corporation shall establish prices for its

19 products, materials, and services provided to customers

20 other than the Department on a basis that will allow it

21 to be competitive in the marketplace for such services.

22 (b) SERVICES PROVIDED TO DOE.—The Corporation

23 shall charge prices to the Department for uranium enrich24 ment services provided on a basis that will allow it to re-
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•HR 4883 IH

1 cover its costs, on a yearly basis, for providing products,

2 materials, and services.

3 SEC. 20. LEASING OF ENRICHMENT FACILITIES OF DEPART4 MENT.

5 (a) IN GENERAL.—The Corporation shall lease the

6 Paducah Gaseous Diffusion Plant in Paducah, Kentucky,

7 the Portsmouth Gaseous Diffusion Plant in Piketon, Ohio,

8 and related property of the Department, until January 1,

9 2005. Thereafter, the Corporation shall have the exclusive

10 option to lease such facilities and related property for ad11 ditional periods.

12 (b)(1) TERMS OF LEASE.—The Corporation and the

13 Energy Department shall set mutually agreeable terms for

14 a lease under subsection (a), including specifying annual

15 payments to the Department by the Corporation for the

16 lease of facilities, buildings, structures, and equipment.

17 The amount of annual payments shall be equal to the cost

18 incurred by the Department in administering the lease and

19 providing services related to the lease to USEE (excluding

20 depreciation and imputed interest on original plant invest21 ments in the Department’s gaseous diffusion plants and

22 costs under subsection (d)).

23 (2) GAS CENTRIFUGE ENRICHMENT PLANT.—The

24 Department of Energy is authorized, subject to conditions

25 contained in this Act, to enter into a lease for the Depart-
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•HR 4883 IH

1 ment of Energy’s GCEP facilities at Portsmouth, Ohio or

2 other buildings, land, or structures at the Paducah, Ken3 tucky facility for purposes of deploying centrifuge or other

4 advanced enrichment technology. The Secretary of Energy

5 shall provide that, after consultation with Community

6 Reuse Organizations, affected employee representatives,

7 and local governments, that the terms of such lease shall

8 require USEE, or its contractors or DOE’s contractors

9 to provide a right of first refusal to those workers who

10 are displaced from employment at the gaseous diffusion

11 plants.

12 (c) EXCLUSION OF FACILITIES FOR PRODUCTION OF

13 HIGHLY ENRICHED URANIUM.—Subsection (a) shall not

14 apply to Department facilities necessary for the produc15 tion of highly enriched uranium. The Secretary may grant

16 to the Corporation access to such facilities for purposes

17 other than the production of highly enriched uranium.

18 (d) DOE RESPONSIBILITY FOR PREEXISTING CONDI19 TIONS.—The payment of any costs of decontamination

20 and decommissioning, environmental response actions, or

21 corrective actions with respect to conditions existing before

22 July 28, 1998, shall remain the sole responsibility of the

23 Department of Energy.

24 (e) ENVIRONMENTAL AUDIT.—The Secretary of En25 ergy, in consultation with the Administrator of the Envi-
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1 ronmental Protection Agency, shall conduct a comprehen2 sive environmental audit identifying environmental condi3 tions that will remain the responsibility of the Department

4 of Energy pursuant to subsection (d) after the transfer

5 of ownership of USEC, Inc. Such audit shall be completed

6 no later than 180 days after the transfer of ownership of

7 USEC, Inc.

8 (f) TREATMENT UNDER PRICE-ANDERSON PROVI9 SIONS.—Any lease executed between the Secretary and the

10 Corporation under this section shall be deemed to be a

11 contract for purposes of section 170(d) of the Atomic En12 ergy Act of 1954.

13 (g) WAIVER OF EIS REQUIREMENT.—The execution

14 of the lease by the Corporation and the Department shall

15 not be considered a major Federal action significantly af16 fecting the quality of the human environment for purposes

17 of section 102 of the National Environmental Policy Act

18 of 1969 (42 U.S.C. 4332).

19 SEC. 21. CAPITAL STRUCTURE OF CORPORATION.

20 (a) CAPITAL STOCK.—

21 (1) ISSUANCE TO SECRETARY OF THE TREAS22 URY.—The Corporation shall issue capital stock.

23 Such stock shall represent an equity investment

24 equal to the net valuation of the corporation at the

25 time of the transfer of ownership of USEC, Inc. The
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1 Secretary of the Treasury shall hold such stock for

2 the United States, except that all rights and duties

3 pertaining to management of the Corporation shall

4 remain vested in the Board.

5 (2) RESTRICTION ON TRANSFERS OF STOCK BY

6 UNITED STATES.—The capital stock of the Corpora7 tion shall not be sold, transferred, or conveyed by

8 the United States.

9 (3) ANNUAL ASSESSMENT.—The Secretary of

10 the Treasury shall annually assess the value of the

11 stock held by the Secretary under paragraph (1) and

12 submit to the Congress a report setting forth such

13 value. The annual assessment of the Secretary shall

14 be subject to review by an independent auditor.

15 (b) PAYMENT OF DIVIDENDS.—The Corporation

16 may, at the discretion of the Board of Directors, pay into

17 miscellaneous receipts of the Treasury of the United

18 States or such other fund as is provided by law, dividends

19 on the capital stock, out of earnings of the Corporation,

20 as a return on the investment represented by such stock

21 if such funds are not required for the projected operations

22 of USEE.

23 (c) PATENTS OF THE ENERGY DEPARTMENT.—The

24 Corporation may at any time apply to the Department of

25 Energy for a patent license for the use of an invention
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1 or discovery useful in the production or utilization of spe2 cial nuclear material or atomic energy covered by a patent

3 when the patent has not been declared to be affected with

4 the public interest and when use of the patent is within

5 the Corporation’s authority.

6 SEC. 22. AUTHORITY TO CONDUCT HOT STANDBY AND

7 STRATEGIC RESERVE ACTIVITIES ON BEHALF

8 OF THE UNITED STATES.

9 (a) HOT STANDBY.—In the event that a gaseous dif10 fusion plant is closed, the Department of Energy is au11 thorized to contract with USEE to operate gaseous diffu12 sion plants on hot standby, in order to assure reliability

13 of enrichment capacity. Subject to appropriations, the De14 partment of Energy is authorized to expend $100,000,000

15 per year to carry out this activity until September 30,

16 2005.

17 (b) STRATEGIC SWU RESERVE.—The Department of

18 Energy is directed to assess the long term needs of the

19 domestic nuclear utility industry with respect to low en20 riched uranium, and to establish adequate strategic re21 serves to assure reliable supply in the event a uranium

22 enrichment plant is closed and the United States is de23 pendent upon only one gaseous diffusion plant. Such sup24 ply shall be sufficient to cover interruptions of 100 percent

25 of United States demand and 100 percent of United
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1 States obligations to any other country under the provi2 sions of the Nuclear Nonproliferation Act of 1978 until

3 new uranium enrichment technology has been deployed.

4 The Department is authorized to contract with USEE to

5 purchase at cost the SWU delivered under the Russian

6 HEU Agreement, at prices to be determined through an

7 arms length transaction between the parties, and contract

8 with USEE to provide blend down services for highly en9 riched uranium for this strategic reserve.

10 SEC. 23. AUTHORITY TO ENTER INTO SUBLEASES FOR PUR11 POSES OF ECONOMIC DEVELOPMENT.

12 The USEE is authorized to enter into subleases with

13 Community Reuse Organization for the re-use and rede14 velopment of property owned by the Department of En15 ergy and leased by USEE at the Portsmouth Gaseous Dif16 fusion Plant and Paducah Gaseous Diffusion Plant. Such

17 subleases shall be subject to the approval of the Secretary

18 of Energy.

19 SEC. 24. LIABILITY.

20 No civil actions may be brought in any court against

21 any Federal official for any acts arising out of the refed22 eralization of USEC, Inc., except with respect to Federal

23 securities laws or violations of title 18, United States

24 Code.

Æ