II

104TH CONGRESS

1ST SESSION S. 755

To amend the Atomic Energy Act of 1954 to provide for the privatization

of the United States Enrichment Corporation.

IN THE SENATE OF THE UNITED STATES

MAY 3 (legislative day, MAY 1), 1995

Mr. DOMENICI (for himself, Mr. FORD, Mr. JOHNSTON, Mr. CAMPBELL, Mr.

THOMAS, and Mr. SIMPSON) introduced the following bill; which was read

twice and referred to the Committee on Energy and Natural Resources

A BILL

To amend the Atomic Energy Act of 1954 to provide for

the privatization of the United States Enrichment Corporation.

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 AND REFERENCE.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘USEC Privatization Act’’.

6 (b) REFERENCE.—Except as otherwise expressly pro7 vided, whenever in this Act an amendment or repeal is

8 expressed in terms of an amendment to, or repeal of, a

9 section or other provision, the reference shall be consid-
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1 ered to be made to a section or other provision of the

2 Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).

3 SEC. 2. PRODUCTION FACILITY.

4 Paragraph v. of section 11 (42 U.S.C. 2014 v.) is

5 amended by striking ‘‘or the construction and operation

6 of a uranium enrichment production facility using Atomic

7 Vapor Laser Isotope Separation technology’’.

8 SEC. 3. DEFINITIONS.

9 Section 1201 (42 U.S.C. 2297) is amended—

10 (1) in paragraph (4), by inserting before the pe11 riod the following: ‘‘and any successor corporation

12 established through privatization of the Corpora13 tion’’;

14 (2) by redesignating paragraphs (10) through

15 (13) as paragraphs (14) through (17), respectively,

16 and by inserting after paragraph (9) the following

17 new paragraphs:

18 ‘‘(10) The term ‘low-level radioactive waste’ has

19 the meaning given such term in section 2(9) of the

20 Low-Level Radioactive Waste Policy Act (42 U.S.C.

21 2021b(9)).

22 ‘‘(11) The term ‘mixed-waste’ has the meaning

23 given such term in section 1004(41) of the Solid

24 Waste Disposal Act (42 U.S.C. 6903(41)).
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1 ‘‘(12) The term ‘privatization’ means the trans2 fer of ownership of the Corporation to private inves3 tors pursuant to chapter 25.

4 ‘‘(13) The term ‘privatization date’ means the

5 date on which 100 percent of the ownership of the

6 Corporation has been transferred to private inves7 tors.’’;

8 (3) by inserting after paragraph (17) (as redes9 ignated) the following new paragraph:

10 ‘‘(18) The term ‘transition date’ means July 1,

11 1993.’’; and

12 (4) by redesignating the unredesignated para13 graph (14) as paragraph (19).

14 SEC. 4. EMPLOYEES OF THE CORPORATION.

15 (a) PARAGRAPH (2).—Paragraphs (1) and (2) of sec16 tion 1305(e) (42 U.S.C. 2297b–4(e)(1)(2)) are amended

17 to read as follows:

18 ‘‘(1) IN GENERAL.—It is the purpose of this

19 subsection to ensure that the privatization of the

20 Corporation shall not result in any adverse effects

21 on the accrued pension benefits of employees at fa22 cilities that are operated, directly or under contract,

23 in the performance of the functions vested in the

24 Corporation.
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1 ‘‘(2) APPLICABILITY OF EXISTING COLLECTIVE

2 BARGAINING AGREEMENT.—Any employer (including

3 the Corporation) at a facility that is operated, di4 rectly or under contract, in the performance of the

5 functions vested in the Corporation shall abide by

6 the terms of the collective bargaining agreement in

7 effect on the privatization date at each individual fa8 cility until the earlier of the date on which the col9 lective bargaining agreement terminates or a new

10 collective bargaining agreement is executed. In the

11 event that a collective bargaining agreement has ex12 pired and is being renegotiated at a facility on the

13 privatization date, the employer shall continue to ob14 serve its obligations under the National Labor Rela15 tions Act.’’.

16 (b) PARAGRAPH (4).—Paragraph (4) of section

17 1305(e) (42 U.S.C. 2297b–4(e)(4)) is amended to read

18 as follows:

19 ‘‘(4) BENEFITS OF TRANSFEREES.—

20 ‘‘(A) Employees of the Corporation who

21 were subject to either the Civil Service Retire22 ment System (CSRS) or the Federal Employ23 ees’ Retirement System (FERS) on the day im24 mediately preceding the privatization date pur-
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1 suant to section 1305 as then in effect, shall

2 elect—

3 ‘‘(i) to retain their coverage under ei4 ther CSRS or FERS, as applicable, in lieu

5 of coverage by the Corporation’s retire6 ment system, or

7 ‘‘(ii) to receive a deferred annuity or

8 lump-sum benefit payable to a terminated

9 employee under CSRS or FERS, as appli10 cable.

11 Those employees electing (ii) shall have the op12 tion to transfer the balance in their Thrift Sav13 ings Plan account to a defined contribution

14 plan under the Corporation’s retirement system,

15 consistent with applicable law and the terms of

16 the Corporation’s defined contribution plan.

17 ‘‘(B) The Corporation shall pay to the

18 Civil Service Retirement and Disability Fund—

19 ‘‘(i) such employee deductions and

20 agency contributions as are required by

21 sections 8334, 8422, and 8423 of title 5,

22 United States Code, for those employees

23 who elect to retain their coverage under ei24 ther CSRS or FERS pursuant to subpara25 graph (A);
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1 ‘‘(ii) such additional agency contribu2 tions as are determined necessary by the

3 Office of Personnel Management to pay, in

4 combination with the sums under subpara5 graph (i), the ‘normal cost’ (determined

6 using dynamic assumptions) of retirement

7 benefits for those employees who elect to

8 retain their coverage under CSRS pursu9 ant to subparagraph (A), with the concept

10 of ‘normal cost’ being utilized consistent

11 with generally accepted actuarial standards

12 and principles; and

13 ‘‘(iii) such additional amounts, not to

14 exceed two percent of the amounts under

15 subparagraphs (i) and (ii), as are deter16 mined necessary by the Office of Personnel

17 Management to pay the cost of administer18 ing retirement benefits for employees who

19 retire from the Corporation after the pri20 vatization date under either CSRS or

21 FERS, for their survivors, and for survi22 vors of employees of the Corporation who

23 die after the privatization date (which

24 amounts shall be available to the Office of

25 Personnel Management as provided in sec-
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1 tion 8348(a)(1)(B) of title 5, United

2 States Code).

3 ‘‘(C) The Corporation shall pay to the

4 Thrift Savings Fund such employee and agency

5 contributions as are required by section 8432 of

6 title 5, United States Code, for those employees

7 who elect to retain their coverage under FERS

8 pursuant to subparagraph (A).

9 ‘‘(D) For those employees of the Corpora10 tion who were subject to the Federal Employee

11 Health Benefits Program (FEHBP) on the day

12 immediately preceding the privatization date

13 pursuant to section 1305 as then in effect and

14 who elect to retain their coverage under either

15 CSRS or FERS pursuant to subparagraph (A),

16 it shall be their option as to whether to receive

17 health benefits from a health benefit plan estab18 lished by the Corporation or to continue without

19 interruption their coverage under the FEHBP,

20 in lieu of coverage by the Corporation’s health

21 benefit system.

22 ‘‘(E) The Corporation shall pay to the Em23 ployees Health Benefits Fund—

24 ‘‘(i) such employee deductions and

25 agency contributions as are required by
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1 section 8906(a)–(f) of title 5, United

2 States Code, for those employees who elect

3 to retain their coverage under FEHBP

4 pursuant to subparagraph (D); and

5 ‘‘(ii) such amounts as are determined

6 necessary by the Office of Personnel Man7 agement under subparagraph (F) to reim8 burse the Office of Personnel Management

9 for contributions under section 8906(g)(1)

10 of title 5, United States Code, for those

11 employees who elect to retain their cov12 erage under FEHBP pursuant to subpara13 graph (D).

14 ‘‘(F) The amounts required under sub15 paragraph (E)(ii) shall pay the Government

16 contributions for retired employees who retire

17 from the Corporation after the privatization

18 date under either CSRS or FERS, for survivors

19 of such retired employees, and for survivors of

20 employees of the Corporation who die after the

21 privatization date, with said amounts prorated

22 to reflect only that portion of the total service

23 of such employees and retired persons that was

24 performed for the Corporation after the privat25 ization date.’’.
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1 SEC. 5. MARKETING AND CONTRACTING AUTHORITY.

2 (a) MARKETING AUTHORITY.—Section 1401(a) (42

3 U.S.C. 2297c(a)) is amended effective on the privatization

4 date (as defined in section 1201(13) of the Atomic Energy

5 Act of 1954) to read as follows:

6 ‘‘(a) MARKETING AUTHORITY.—Except as provided

7 in this section, the Department may not market enriched

8 uranium (including low-enriched uranium derived from

9 highly enriched uranium) and uranium enrichment and re10 lated services after the privatization date.

11 ‘‘(1) RIGHT OF FIRST REFUSAL.—The Depart12 ment may itself or through a marketing agent of its

13 choice solicit a purchaser for enriched uranium (in14 cluding low-enriched uranium derived from highly

15 enriched uranium) and uranium enrichment and re16 lated services after the privatization date using com17 petitive bidding procedures. The Corporation may

18 obtain the enriched uranium (including low-enriched

19 uranium derived from highly enriched uranium) for

20 which the Department is seeking a purchaser by—

21 ‘‘(A) offering purchase terms that, in the

22 judgment of the Secretary, exceed the highest

23 qualifying bid received by the Department or its

24 marketing agent; or
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1 ‘‘(B) offering a bid that in the judgment of

2 the Secretary best serves the public interest for

3 financial, national security, or other reasons.

4 ‘‘(2) MARKETING AGENT.—Without using a

5 competitive process for selecting a marketing agent,

6 the Department may use the Corporation as its mar7 keting agent for entering into contracts for provid8 ing enriched uranium (including low-enriched ura9 nium derived from highly enriched uranium) and

10 uranium enrichment and related services.

11 ‘‘(3) GOVERNMENT TRANSFERS.—Nothing in

12 this section shall be construed to limit the authority

13 of the Secretary to transfer, in a manner the Sec14 retary determines appropriate, enriched uranium (in15 cluding low-enriched uranium derived from highly

16 enriched uranium)—

17 ‘‘(A) between the Department and other

18 federal agencies if the material is transferred

19 for the use of the receiving agency and does not

20 meet commercial specifications;

21 ‘‘(B) between the Department and any en22 tity or person for national security purposes, as

23 determined by the Secretary; or

24 ‘‘(C) between the Department and state or

25 local agencies and nonprofit, charitable or edu-
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1 cational institutions for use other than for the

2 generation of electricity for commercial use.

3 ‘‘(4) SECRETARIAL DETERMINATION.—Prior to

4 any sale by the Department or its marketing agent

5 under paragraph (1) of enriched uranium (including

6 low-enriched uranium derived from highly enriched

7 uranium) or uranium enrichment or related services,

8 and after the President has determined such mate9 rial is not necessary to national security needs, the

10 Secretary shall determine by full rulemaking with

11 opportunity for public comment that—

12 ‘‘(A) the price paid to the Department for

13 such material will be a fair market price; and

14 ‘‘(B) the sale of such material will not

15 have an adverse impact on the domestic mining

16 or enrichment industries taking into account

17 sales of enriched uranium (including low-en18 riched uranium derived from highly enriched

19 uranium) under the Amendment to the Agree20 ment Suspending the Antidumping Investiga21 tion on Uranium from the Russian Federation,

22 Department of Commerce Investigation No. A–

23 821–802, dated March 11, 1994, and the

24 Agreement Between the Government of the

25 United States of America and the Government
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1 of the Russian Federation Concerning the Dis2 position of Highly Enriched Uranium Extracted

3 from Nuclear Weapons.

4 ‘‘(5) RIGHT TO CANCEL PROPOSED SALE.—

5 Nothing in this section shall be interpreted to pre6 clude the Secretary from canceling a proposed sale

7 for any reason.

8 ‘‘(6) URANIUM INVENTORY REPORT.—180 days

9 prior to any sale under this section, the Secretary

10 shall submit to Congress a current uranium inven11 tory report including updated information with re12 spect to the items listed in section 2296b–5 of title

13 42 United States Code, together with information

14 regarding the proposed sale or transfer.

15 ‘‘(7) PROCEEDS FROM SALES.—Proceeds from

16 sales under this section shall be deposited into the

17 general fund of the United States Treasury.’’.

18 (b) TRANSFER OF CONTRACTS.—Section 1401(b) (42

19 U.S.C. 2297c(b)) is amended—

20 (1) in paragraph (2)(B), by adding at the end

21 the following: ‘‘The privatization of the Corporation

22 shall not affect the terms of, or the rights or obliga23 tions of the parties to, any such power purchase con24 tract.’’; and

25 (2) by adding at the end the following:
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1 ‘‘(3) EFFECT OF TRANSFER.—

2 ‘‘(A) As a result of the transfer pursuant

3 to paragraph (1), all rights, privileges, and ben4 efits under such contracts, agreements, and

5 leases, including the right to amend, modify, ex6 tend, revise, or terminate any of such contracts,

7 agreements, or leases were irrevocably assigned

8 to the Corporation for its exclusive benefit.

9 ‘‘(B) Notwithstanding the transfer pursu10 ant to paragraph (1), the United States shall

11 remain obligated to the parties to the contracts,

12 agreements, and leases transferred pursuant to

13 paragraph (1) for the performance of the obli14 gations of the United States thereunder during

15 the term thereof. The Corporation shall reim16 burse the United States for any amount paid in

17 respect of such obligations arising after the pri18 vatization date to the extent such amount is a

19 legal and valid obligation of the Corporation

20 then due.

21 ‘‘(C) After the privatization date, upon any

22 material amendment, modification, extension,

23 revision, replacement, or termination of any

24 contract, agreement, or lease transferred under

25 paragraph (1), the United States shall be re-
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1 leased from further obligation under such con2 tract, agreement, or lease, except that such ac3 tion shall not release the United States from

4 obligations arising under such contract, agree5 ment, or lease prior to such time.

6 ‘‘(D) The Corporation shall establish prices

7 for its products, materials, and services pro8 vided to customers on a basis that will allow it

9 to attain the normal business objectives of a

10 profitmaking corporation for all uranium en11 richment contracts transferred pursuant to

12 paragraph (1).’’.

13 (c) LOW-LEVEL RADIOACTIVE WASTE.—Section

14 1403 (42 U.S.C. 2297c–2) is amended by adding at the

15 end the following:

16 ‘‘(h) OBLIGATION OF THE DEPARTMENT TO ACCEPT

17 LOW-LEVEL RADIOACTIVE WASTE.—

18 ‘‘(1) At the request of the generator, the De19 partment shall accept for treatment and disposal the

20 low-level radioactive waste generated—

21 ‘‘(A) by the Corporation as a result of the

22 operation of the facilities and related property

23 leased by the Corporation pursuant to sub24 section (a); and
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1 ‘‘(B) by any person licensed by the Nu2 clear Regulatory Commission to operate a ura3 nium enrichment facility under sections 53, 63,

4 and 193 of the Atomic Energy Act of 1954 (42

5 U.S.C. 2073, 2093, and 2243).

6 ‘‘(2) The increase in costs of treatment and dis7 posal actually incurred by the Department which are

8 solely attributable to and result from the treatment

9 and disposal of such wastes received from the gener10 ator shall be paid to the Department by the genera11 tor, but in no event shall such payment exceed an

12 amount equal to that which would be charged by

13 commercial entities for the treatment and disposal of

14 such wastes.

15 ‘‘(3) At its sole discretion, the generator may,

16 but is not required to, arrange for the treatment and

17 disposal of such wastes or any portion thereof at any

18 other facility otherwise authorized by applicable laws

19 and regulations to treat or dispose of such wastes.

20 ‘‘(4) The costs of treatment and disposal of

21 such wastes at any other facility shall be borne sole22 ly by the generator.’’.

23 (d) TRANSFER OF URANIUM.—Title II (42 U.S.C.

24 2297 et seq.) is amended by redesignating section 1408
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1 as section 1409 and inserting after section 1407 the fol2 lowing:

3 ‘‘SEC. 1408. TRANSFER OF URANIUM.

4 ‘‘(a) IN GENERAL.—In addition to material trans5 ferred to the Corporation pursuant to the Memorandum

6 of Agreement Relating to the Transfer of Functions and

7 Activities from the Department to the Corporation dated

8 December 15, 1994, the Secretary may, before the privat9 ization date, transfer to the Corporation without charge

10 the low-enriched uranium from up to 50 metric tons of

11 highly enriched uranium and up to 7,000 metric tons of

12 natural uranium.

13 ‘‘(b) LIMITATION ON SALE OF LOW-ENRICHED URA14 NIUM AND NATURAL URANIUM TRANSFERRED BY THE

15 UNITED STATES.—

16 ‘‘(1) Natural uranium transferred pursuant to

17 subsection (a) by the United States to the Corpora18 tion may not be delivered for commercial end use

19 prior to January 1, 1998. Beginning January 1,

20 1998, the total amount of such natural uranium

21 from stockpiles held by the United States or the

22 Corporation delivered in any calendar year for com23 mercial end use may not exceed ten percent of the

24 uranium hexafluoride equivalent content of the total

25 amount of natural uranium transferred pursuant to
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1 subsection (a). In no event shall the total quantity

2 of such natural uranium delivered for commercial

3 end use exceed 4 million pounds uranium

4 hexafluoride equivalent in any calendar year.

5 ‘‘(2) Low-enriched uranium transferred pursu6 ant to subsection (a) by the United States to the

7 Corporation may be delivered for commercial end

8 use in an amount not to exceed 800,000 separative

9 work units in any calendar year.’’.

10 SEC. 6. PURCHASE OF HIGHLY ENRICHED URANIUM FROM

11 FORMER SOVIET UNION.

12 Section 1409 (as redesignated) of the Atomic Energy

13 Act of 1954 (42 U.S.C. 2011 et seq.) is amended to read:

14 ‘‘(a) IN GENERAL.—The Government of the United

15 States, may, at any time after the privatization date,

16 change the Executive Agent pursuant to Article III of the

17 Agreement Between the Government of the United States

18 of America and the Government of the Russian Federation

19 Concerning the Disposition of Highly Enriched Uranium

20 Extracted from Nuclear Weapons, dated February 18,

21 1993, upon 30 days written notice to the other Party.

22 ‘‘(b) EXECUTIVE AGENT ON PRIVATIZATION DATE.—

23 On the privatization date, the Executive Agent designated

24 by the Government of the United States pursuant to Arti25 cle III of the Agreement Between the Government of the
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1 United States of America and the Government of the Rus2 sian Federation Concerning the Disposition of Highly En3 riched Uranium Extracted from Nuclear Weapons, dated

4 February 18, 1993, shall be the Corporation.

5 ‘‘(c) AUTHORITIES AND OBLIGATIONS OF THE EXEC6 UTIVE AGENT.—The Executive Agent is authorized to ne7 gotiate the purchase of all highly enriched uranium made

8 available by any State of the former Soviet Union under

9 a government-to-government agreement or shall assume

10 the obligations of the Department or any previous Execu11 tive Agent under any contractual agreement that has been

12 reached with any such State or any private entity by the

13 Department or any previous Executive Agent. The Execu14 tive Agent may only purchase that material so long as the

15 quality of the material can be made suitable for use in

16 commercial reactors.

17 ‘‘(d)(1) The Executive Agent of the United States is

18 authorized to enter into contracts for the resale of the en19 richment component of low-enriched uranium derived from

20 highly enriched uranium and purchased pursuant to an

21 agreement under subsection (c). Upon delivery by the Ex22 ecutive Agent of the United States of such low-enriched

23 uranium pursuant to a contract for the sale of the enrich24 ment component of such low-enriched uranium, the Execu25 tive Agent of the United States shall deliver an amount
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1 of uranium hexafluoride equivalent to the natural uranium

2 component of such low-enriched uranium to the Executive

3 Agent of the Russian Federation. The quantity of such

4 uranium hexafluoride delivered to the Executive Agent of

5 the Russian Federation shall be based on a 0.30 w/o tails

6 assay.

7 ‘‘(2) Title to uranium hexafluoride delivered to the

8 Executive Agent of the Russian Federation pursuant to

9 subparagraph (d)(1) shall transfer to the Executive Agent

10 of the Russian Federation upon delivery of such material

11 to the Executive Agent of the Russian Federation.

12 ‘‘(3) Uranium hexafluoride delivered to the Executive

13 Agent of the Russian Federation pursuant to subpara14 graph (d)(1) shall be deemed to be of Russian origin. Ex15 cept as otherwise provided in paragraph (d)(4), such ura16 nium hexafluoride shall be subject to the restrictions con17 tained in the Amendment to the Agreement Suspending

18 the Antidumping Investigation on Uranium from the Rus19 sian Federation, 59 Federal Register 15373, as such re20 strictions were in effect on March 11, 1994; and may also

21 be used in the United States for the purpose of overfeed22 ing in the operations of enrichment facilities or may be

23 resold for end use outside the United States.

24 ‘‘(4) Beginning January 1, 2002, uranium

25 hexafluoride delivered to the Executive Agent of the Rus-
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1 sian Federation pursuant to subparagraph (d)(1), may be

2 delivered for consumption by end users in the United

3 States only in accordance with the following schedule:

Years Annual Maximum Deliveries

2002–2011 ..................................... 10 million lbs. uranium hexafluoride

2012– ............................................. 20 million lbs. uranium hexafluoride

4 ‘‘(5) Material sold pursuant to subparagraph (d)(4)

5 may be used for swaps and exchanges only where such

6 swaps and exchanges are documented to be conducted

7 solely for the purpose of facilitating the further processing

8 and use as nuclear fuel by the end-user. The material shall

9 not be loaned.’’.

10 SEC. 7. PRIVATIZATION OF THE CORPORATION.

11 (a) ESTABLISHMENT OF PRIVATE CORPORATION.—

12 Chapter 25 (42 U.S.C. 2297d et seq.) is amended by add13 ing at the end the following new section:

14 ‘‘SEC. 1503. ESTABLISHMENT OF PRIVATE CORPORATION.

15 ‘‘(a) ESTABLISHMENT.—

16 ‘‘(1) IN GENERAL.—In order to facilitate pri17 vatization, the Corporation may provided for the es18 tablishment of a private corporation organized under

19 the laws of the several States. Such corporation shall

20 have among its purposes the following:

21 ‘‘(A) To help maintain a reliable and eco22 nomical domestic source of uranium enrichment

23 services.
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1 ‘‘(B) To undertake any and all activities as

2 provided in its corporate charter.

3 ‘‘(2) AUTHORITIES.—Subject to applicable li4 censing, certification, or other requirements under

5 this Act, the corporation established pursuant to

6 paragraph (1) shall be authorized to—

7 ‘‘(A) enrich uranium, provide for uranium

8 to be enriched by others, or acquire enriched

9 uranium (including low-enriched uranium de10 rived from highly enriched uranium);

11 ‘‘(B) conduct, or provide for conducting,

12 those research and development activities relat13 ed to uranium enrichment and related processes

14 and activities the corporation considers nec15 essary or advisable to maintain itself as a com16 mercial enterprise operating on a profitable and

17 efficient basis:

18 ‘‘(C) enter into transactions regarding ura19 nium, enriched uranium, or depleted uranium

20 with—

21 ‘‘(i) persons licensed under section 53,

22 63, 103, or 104 in accordance with the li23 censes held by those persons;
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1 ‘‘(ii) persons in accordance with, and

2 within the period of, an agreement for co3 operation arranged under section 123; or

4 ‘‘(iii) persons otherwise authorized by

5 law to enter into such transactions;

6 ‘‘(D) enter into contracts with persons li7 censed under section 53, 63, 103, or 104, for

8 as long as the corporation considers necessary

9 or desirable, to provide uranium or uranium en10 richment or related services;

11 ‘‘(E) enter into contracts to provide ura12 nium or uranium enrichment and related serv13 ices in accordance with, and within the period

14 of, an agreement for cooperation arranged

15 under section 123 or as otherwise authorized by

16 law; and

17 ‘‘(F) take any and all such other actions as

18 are permitted by law of the jurisdiction of in19 corporation of the corporation.

20 ‘‘(3) TRANSFER OF ASSETS.—For purposes of

21 implementing the privatization, the Corporation may

22 transfer some or all of its assets and obligations and

23 records to the corporation established pursuant to

24 this section, including—
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1 ‘‘(A) all the Corporation’s assets and obli2 gations, including all of the Corporation’s

3 rights, duties, and obligations accruing subse4 quent to the privatization date under contracts,

5 agreements, and leases entered into by the Cor6 poration before the privatization date, including

7 all uranium enrichment contracts and power

8 purchase contracts;

9 ‘‘(B) all funds in accounts of the Corpora10 tion held by the Treasury or on deposit with

11 any bank or other financial institution;

12 ‘‘(C) all of the Corporation’s rights to pur13 chase power from the Secretary under the

14 power purchase contracts covered by section

15 1401(b)(2)(B); and

16 ‘‘(D) all of the Corporation’s rights, duties,

17 and obligations, accruing subsequent to the pri18 vatization date, under the lease agreement be19 tween the Department and the Corporation exe20 cuted by the Department and the Corporation

21 pursuant to section 1403; and

22 ‘‘(E) all of the Corporation’s records, in23 cluding all of the papers and other documentary

24 materials, regardless of physical form or char-
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1 acteristics, made or received by the Corpora2 tion.

3 ‘‘(4) MERGER OR CONSOLIDATION.—For pur4 poses of implementing the privatization, the Cor5 poration may merge or consolidate with the corpora6 tion established pursuant to subsection (a)(1) if such

7 action is contemplated by the plan for privatization

8 approved by the President under section 1502(b).

9 The Board shall have exclusive authority to approve

10 such merger or consolidation, and to take all further

11 actions necessary to consummate such merger or

12 consolidation, and no action by or in respect of

13 shareholders shall be required. The merger or con14 solidation shall be effected in accordance with, and

15 have the effects of a merger or consolidation under,

16 the laws of the jurisdiction of incorporation of the

17 surviving corporation, and all rights and benefits

18 provided under this title to the Corporation shall

19 apply to the surviving corporation as if it were the

20 Corporation.

21 ‘‘(5) TAX TREATMENT OF PRIVATIZATION.—

22 ‘‘(A) TRANSFER OF ASSETS OR MERGER.—

23 No income, gain, or loss shall be recognized by

24 any person by reason of the transfer of the Cor25 poration’s assets to, or the Corporation’s merg-
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1 er with, the corporation established pursuant to

2 subsection (a)(1) in connection with the privat3 ization.

4 ‘‘(B) CANCELLATION OF DEBT AND COM5 MON STOCK.—No income, gain, or loss shall be

6 recognized by any person by reason of any can7 cellation of any obligation or common stock of

8 the Corporation in connection with the privat9 ization.

10 ‘‘(6) ACTIVITIES PRIOR TO PRIVATIZATION.—

11 Prior to privatization, the activities of the corpora12 tion established pursuant to subsection (a)(1) shall

13 be limited to those contemplated by the privatization

14 plan approved by the President under section

15 1502(b).

16 ‘‘(b) OSHA REQUIREMENTS.—For purposes of the

17 regulation of radiological and nonradiological hazards

18 under the Occupational Safety and Health Act of 1970,

19 the corporation established pursuant to subsection (a)(1)

20 shall be treated in the same manner as other employers

21 licensed by the Nuclear Regulatory Commission. Any

22 interagency agreement entered into between the Nuclear

23 Regulatory Commission and the Occupational Safety and

24 Health Administration governing the scope of their respec25 tive regulatory authorities shall apply to the corporation
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1 as if the corporation were a Nuclear Regulatory Commis2 sion licensee.

3 ‘‘(c) LEGAL STATUS OF PRIVATE CORPORATION.—

4 ‘‘(1) NOT FEDERAL AGENCY.—The corporation

5 established pursuant to subsection (a)(1) shall not

6 be an agency of the United States Government and

7 shall not be a Government corporation or Govern8 ment-controlled corporation. For purposes of United

9 States antitrust laws, the performance by the cor10 poration established pursuant to subsection (a)(1) of

11 a ‘matched import’ contract shall be considered to

12 have occurred prior to the privatization date, if at

13 the time of privatization, such contract had been

14 agreed to by the parties in all material terms and

15 confirmed by the United States Department of Com16 merce under the Amendment to the Agreement Sus17 pending the Antidumping Investigation on Uranium

18 from the Russian Federation, Department of Com19 merce Investigation No. A–821–802, dated March

20 11, 1994.

21 ‘‘(2) NO RECOURSE AGAINST UNITED

22 STATES.—Obligations of the corporation established

23 pursuant to subsection (a)(1) shall not be obliga24 tions of, or guaranteed as to principal or interest by,
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1 the Corporation or the United States, and the obli2 gations shall so plainly state.

3 ‘‘(3) NO CLAIMS COURT JURISDICTION.—No ac4 tion under section 1491 of title 28, United States

5 Code, shall be allowable against the United States

6 based on the actions of the corporation established

7 pursuant to subsection (a)(1).

8 ‘‘(d) BOARD OF DIRECTOR’S ELECTION AFTER PUB9 LIC OFFERING.—In the event that the privatization is im10 plemented by means of a public offering, an election of

11 the members of the board of directors of the Corporation

12 by the shareholders shall be conducted before the end of

13 the 1-year period beginning the date shares are first of14 fered to the public pursuant to such public offering.’’.

15 (b) OWNERSHIP LIMITATIONS.—Chapter 25 (as

16 amended by subsection (a)) is amended by adding at the

17 end the following new section:

18 ‘‘SEC. 1504. OWNERSHIP LIMITATIONS.

19 ‘‘(a) SECURITIES LIMITATION.—In the event that the

20 privatization is implemented by means of a public offering,

21 during a period of 3 years beginning on the privatization

22 date, no person, directly or indirectly, may acquire or hold

23 securities representing more than 10 percent of the total

24 votes of all outstanding voting securities of the Corpora25 tion.
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1 ‘‘(b) APPLICATION.—Subsection (a) shall not apply—

2 ‘‘(1) to any employee stock ownership plan of

3 the Corporation,

4 ‘‘(2) to underwriting syndicates holding shares

5 for resale, or

6 ‘‘(3) in the case of shares beneficially held for

7 others, to commercial banks, broker-dealers, clearing

8 corporations, or other nominees.

9 ‘‘(c) No director, officer, or employee of the Corpora10 tion may acquire any securities, or any rights to acquire

11 securities of the Corporation on terms more favorable than

12 those offered to the general public—

13 ‘‘(1) in the public offering of securities of the

14 Corporation in the implementation of the privatiza15 tion,

16 ‘‘(2) pursuant to any agreement, arrangement,

17 or understanding entered into before the privatiza18 tion date, or

19 ‘‘(3) before the election of directors of the Cor20 poration under section 1503(d).’’.

21 (c) EXEMPTION FROM LIABILITY.—Chapter 25 (as

22 amended by subsection (b)) is amended by adding at the

23 end the following new section:
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1 ‘‘SEC. 1505. EXEMPTION FROM LIABILITY.

2 ‘‘(a) IN GENERAL.—No director, officer, employee, or

3 agent of the Corporations shall be liable, for money dam4 ages or otherwise, to any party if, with respect to the sub5 ject matter of the action, suit, or proceeding, such person

6 was fulfilling a duty, in connection with any action taken

7 in connection with the privatization, which such person in

8 good faith reasonably believed to be required by law or

9 vested in such person.

10 ‘‘(b) EXCEPTION.—The exemption set forth in sub11 section (a) shall not apply to claims arising under the Se12 curities Act of 1933, the Securities Exchange Act of 1934

13 or under the Constitution or laws of any State, territory,

14 or possession of the United States relating to transactions

15 in securities, which claims are in connection with a public

16 offering implementing the privatization.

17 ‘‘(c) SECURITIES LAWS APPLICABLE.—Any offering

18 or sale of securities by the corporation established pursu19 ant to section 1503(a)(1) shall be subject to the Securities

20 Act of 1933, the Securities Exchange Act of 1934 and

21 the provisions of the Constitution and laws of any State,

22 territory, or possession of the United States relating to

23 transactions in securities.’’.

24 (d) RESOLUTION OF CERTAIN ISSUES.—Chapter 25

25 (as amended by subsection (c)) is amended by adding at

26 the end the following new section:
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1 ‘‘SEC. 1506. RESOLUTION OF CERTAIN ISSUES.

2 ‘‘(a) CORPORATION ACTIONS.—Notwithstanding any

3 provision of any agreement to which the Corporation is

4 a party, the Corporation shall not be considered to be in

5 breach, default, or violation of any such agreement be6 cause of any provision of this chapter or any action the

7 Corporation is required to take under this chapter.

8 ‘‘(b) RIGHT TO SUE WITHDRAWN.—The United

9 States hereby withdraws any stated or implied consent for

10 the United States, or any agent or officer of the United

11 States, to be sued by any person for any legal, equitable,

12 or other relief with respect to any claim arising out of,

13 or resulting from, acts or omissions under this chapter.’’.

14 (e) APPLICATION OF PRIVATIZATION PROCEEDS.—

15 Chapter 25 (as amended by subsection (d)) is amended

16 by adding at the end the following new section:

17 ‘‘SEC. 1507. APPLICATION OF PRIVATIZATION PROCEEDS.

18 ‘‘The proceeds from the privatization shall be in19 cluded in the budget baseline required by the Balanced

20 Budget and Emergency Deficit Control Act of 1985 and

21 shall be counted as an offset to direct spending for pur22 poses of section 252 of such Act, notwithstanding section

23 257(e) of such Act.’’.

24 (f) CONFORMING AMENDMENT.—The table of con25 tents for chapter 25 is amended by inserting after the item

26 for section 1502 the following:
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‘‘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.’’.

1 (g) Section 193 (42 U.S.C. 2243) is amended by add2 ing at the end the following:

3 ‘‘(f) LIMITATION.—No license or certificate of com4 pliance may be issued to the Corporation under section

5 53, 63, 193, or 1701, if in the opinion of the Nuclear Reg6 ulatory Commission, the issuance of such a license or cer7 tificate of compliance to the Corporation would be inimical

8 to the common defense and security of the United States

9 due to the nature and extent of the ownership, control or

10 domination of the Corporation by a foreign corporation or

11 a foreign government or any other relevant factors or cir12 cumstances.’’.

13 SEC. 8. PERIODIC CERTIFICATION OF COMPLIANCE.

14 Section 1701(c)(2) (42 U.S.C. 2297f(c)(2)) is

15 amended by striking ‘‘ANNUAL APPLICATION FOR CER16 TIFICATE OF COMPLIANCE.—The Corporation shall apply

17 at least annually to the Nuclear Regulatory Commission

18 for a certificate of compliance under paragraph (1).’’ and

19 inserting ‘‘PERIODIC APPLICATION FOR CERTIFICATE OF

20 COMPLIANCE.—The Corporation shall apply to the Nu21 clear Regulatory Commission for a certificate of compli22 ance under paragraph (1) periodically, as determined by
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1 the Nuclear Regulatory Commission, but not less than

2 every 5 years.’’.

3 SEC. 9. LICENSING OF OTHER TECHNOLOGIES.

4 Subsection (a) of section 1702 (42 U.S.C. 2297f–

5 1(a)) is amended—

6 (1) by striking ‘‘other than’’ and inserting ‘‘in7 cluding’’, and

8 (2) by striking ‘‘sections 53 and 63’’ and insert9 ing ‘‘sections 53, 63, and 193’’.

10 SEC. 10. JUDICIAL REVIEW OF NUCLEAR REGULATORY

11 COMMISSION ACTIONS.

12 Section 189 of the Atomic Energy Act of 1954 (42

13 U.S.C. 2239(b)) is amended to read as follows:

14 ‘‘(b) The following Commission actions shall be sub15 ject to judicial review in the manner prescribed in chapter

16 158 of title 28, United States Code and chapter 7 of title

17 5, United States Code:

18 ‘‘(1) Any final order entered in any proceeding

19 of the kind specified in subsection (a) above.

20 ‘‘(2) Any final order allowing or prohibiting a

21 facility to begin operating under a combined con22 struction and operating license.

23 ‘‘(3) Any final order establishing by regulation

24 standards to govern the gaseous diffusion uranium

25 enrichment facilities of the Department of Energy,
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1 including any such facilities leased to a corporation

2 established pursuant to section 1503.

3 ‘‘(4) Any final determination relating to wheth4 er the gaseous diffusion uranium enrichment facili5 ties of the Department of Energy, including any

6 such facilities leased to a corporation established

7 pursuant to section 1503, are in compliance with the

8 Commission’s standards governing the gaseous diffu9 sion uranium enrichment facilities of the Depart10 ment of Energy and all applicable laws.’’.

11 SEC. 11. CIVIL MONETARY PENALTIES FOR VIOLATIONS OF

12 LICENSING OR CERTIFICATION REQUIRE13 MENTS.

14 (a) IN GENERAL.—Subsection 234 of the Atomic En15 ergy Act of 1954 (42 U.S.C. 2282(a)) is amended to read

16 as follows:

17 ‘‘(a) CIVIL PENALTIES.—

18 ‘‘(1) IN GENERAL.—A person who—

19 ‘‘(A) violates—

20 ‘‘(i) a licensing provision of section

21 53, 57, 62, 63, 81, 82, 101, 103, 104,

22 107, or 109, or any rule, regulation, or

23 order issued under the provision;
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1 ‘‘(ii) a certification provision of sec2 tion 1701, or any rule or regulation issued

3 under the provision; or

4 ‘‘(iii) a term, condition, or limitation

5 of a license or certification issued under a

6 section referred to in clause (i) or (ii); or

7 ‘‘(B) commits a violation for which a li8 cense may be revoked under section 186 or a

9 certificate may be revoked under section 1701;

10 shall be subject to a civil penalty, to be imposed by

11 the Commission, of not to exceed $100,000 for each

12 violation.

13 ‘‘(2) CONTINUING VIOLATIONS.—If a violation

14 described in paragraph (1) continues for more than

15 1 day, each day of the violation shall constitute a

16 separate violation for the purpose of determining the

17 applicable civil penalty.

18 ‘‘(3) MODIFICATION OF PENALTY.—The Com19 mission may compromise, mitigate, or remit a pen20 alty required to be imposed under this subsection.’’.

21 (b) CONFORMING AMENDMENTS.—

22 (1) Section 234 of such Act (42 U.S.C. 2282)

23 is amended—

24 (A) in the section heading, by inserting

25 ‘‘OR CERTIFICATION’’ after ‘‘LICENSING’’;
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1 (B) by inserting after ‘‘(b)’’, the following:

2 ‘‘NOTIFICATION BY THE COMMISSION.—’’; and

3 (C) by inserting after ‘‘(c)’’ the following:

4 ‘‘ACTION BY THE ATTORNEY GENERAL.—’’.

5 (2) The table of contents of such Act (42

6 U.S.C. prec. 2011) is amended by striking the item

7 relating to section 234 and inserting the following

8 new item:

‘‘Sec. 234. Civil monetary penalties for violations of licensing or certification requirements.’’.

9 SEC. 12. CONFORMING AMENDMENTS.

10 (a) REPEALS IN ATOMIC ENERGY ACT OF 1954 AS

11 OF THE PRIVATIZATION DATE.—

12 (1) REPEALS.—As of the privatization date (as

13 defined in section 1201(13) of the Atomic Energy

14 Act of 1954), the following sections (as in effect on

15 such privatization date) of the Atomic Energy Act of

16 1954 are repealed:

17 (A) Section 1202.

18 (B) Sections 1301 through 1304.

19 (C) Sections 1306 through 1316.

20 (D) Section 1402.

21 (E) Sections 1404 and 1405.

22 (F) Section 1601.

23 (G) Sections 1603 through 1607.
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1 (2) CONFORMING AMENDMENT.—The table of

2 contents of such Act is amended by repealing the

3 items referring to sections repealed by paragraph

4 (1).

5 (b) STATUTORY MODIFICATIONS.—As of such privat6 ization date, the following shall take effect:

7 (1) For purposes of title I of the Atomic En8 ergy Act of 1954, all references in such Act to the

9 ‘‘United States Enrichment Corporation’’ shall be

10 deemed to be references to the corporation estab11 lished pursuant to section 1503 of the Atomic En12 ergy Act of 1954 (as added by section 7(a)).

13 (2) Section 1018(1) of the Energy Policy Act of

14 1992 (42 U.S.C. 2296b–7(1)) is amended by strik15 ing ‘‘the United States’’ and all that follows through

16 the period and inserting ‘‘the corporation referred to

17 in section 1201(4) of the Atomic Energy Act of

18 1954.’’.

19 (3) Section 9101(3) of title 31, United States

20 Code, is amended by striking subparagraph (N), as

21 added by section 902(b) of Public Law 102–486.

22 (c) REVISION OF SECTION 1305.—As of such privat23 ization date, section 1305 of the Atomic Energy Act of

24 1954 (42 U.S.C. 2297b–4) is amended—
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1 (1) by repealing subsections (a), (b), (c), and

2 (d), and

3 (2) in subsection (e)—

4 (A) by striking the subsection designation

5 and heading,

6 (B) by redesignating paragraphs (1) and

7 (2) (as added by section 4(a)) as subsections

8 (a) and (b) and by moving the margins 2-ems

9 to the left,

10 (C) by striking paragraph (3), and

11 (D) by redesignating paragraph (4) (as

12 amended by section 4(b)) as subsection (c), and

13 by moving the margins 2-ems to the left.

Æ

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