Calendar No. 244

104TH CONGRESS

1ST SESSION S. 755

[Report No. 104–173]

A BILL

To amend the Atomic Energy Act of 1954 to proNEnrichment Corporation. vide for the privatization of the United States OVEMBER 17 (legislative day, NOVEMBER 16), 1995

Reported with an amendment
II

Calendar No. 244

104TH CONGRESS

1ST SESSION S. 755

[Report No. 104–173]

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

NOVEMBER 17 (legislative day, NOVEMBER 16), 1995

Reported by Mr. MURKOWSKI, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

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’’.
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1 (b) REFERENCE.—Except as otherwise expressly pro2 vided, whenever in this Act an amendment or repeal is

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

4 section or other provision, the reference shall be consid5 ered to be made to a section or other provision of the

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

7 SEC. 2. PRODUCTION FACILITY.

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

9 amended by striking ‘‘or the construction and operation

10 of a uranium enrichment production facility using Atomic

11 Vapor Laser Isotope Separation technology’’.

12 SEC. 3. DEFINITIONS.

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

14 (1) in paragraph (4), by inserting before the pe15 riod the following: ‘‘and any successor corporation

16 established through privatization of the Corpora17 tion’’;

18 (2) by redesignating paragraphs (10) through

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

20 and by inserting after paragraph (9) the following

21 new paragraphs:

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

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

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

25 2021b(9)).
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1 ‘‘(11) The term ‘mixed-waste’ has the meaning

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

3 Waste Disposal Act (42 U.S.C. 6903(41)).

4 ‘‘(12) The term ‘privatization’ means the trans5 fer of ownership of the Corporation to private inves6 tors pursuant to chapter 25.

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

8 date on which 100 percent of the ownership of the

9 Corporation has been transferred to private inves10 tors.’’;

11 (3) by inserting after paragraph (17) (as redes12 ignated) the following new paragraph:

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

14 1993.’’; and

15 (4) by redesignating the unredesignated para16 graph (14) as paragraph (19).

17 SEC. 4. EMPLOYEES OF THE CORPORATION.

18 (a) PARAGRAPH (2).—Paragraphs (1) and (2) of sec19 tion 1305(e) (42 U.S.C. 2297b–4(e)(1)(2)) are amended

20 to read as follows:

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

22 subsection to ensure that the privatization of the

23 Corporation shall not result in any adverse effects

24 on the accrued pension benefits of employees at fa25 cilities that are operated, directly or under contract,
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1 in the performance of the functions vested in the

2 Corporation.

3 ‘‘(2) APPLICABILITY OF EXISTING COLLECTIVE

4 BARGAINING AGREEMENT.—Any employer (including

5 the Corporation) at a facility that is operated, di6 rectly or under contract, in the performance of the

7 functions vested in the Corporation shall abide by

8 the terms of the collective bargaining agreement in

9 effect on the privatization date at each individual fa10 cility until the earlier of the date on which the col11 lective bargaining agreement terminates or a new

12 collective bargaining agreement is executed. In the

13 event that a collective bargaining agreement has ex14 pired and is being renegotiated at a facility on the

15 privatization date, the employer shall continue to ob16 serve its obligations under the National Labor Rela17 tions Act.’’.

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

19 1305(e) (42 U.S.C. 2297b–4(e)(4)) is amended to read

20 as follows:

21 ‘‘(4) BENEFITS OF TRANSFEREES.—

22 ‘‘(A) Employees of the Corporation who

23 were subject to either the Civil Service Retire24 ment System (CSRS) or the Federal Employ25 ees’ Retirement System (FERS) on the day im-
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1 mediately preceding the privatization date pur2 suant to section 1305 as then in effect, shall

3 elect—

4 ‘‘(i) to retain their coverage under ei5 ther CSRS or FERS, as applicable, in lieu

6 of coverage by the Corporation’s retire7 ment system, or

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

9 lump-sum benefit payable to a terminated

10 employee under CSRS or FERS, as appli11 cable.

12 Those employees electing (ii) shall have the op13 tion to transfer the balance in their Thrift Sav14 ings Plan account to a defined contribution

15 plan under the Corporation’s retirement system,

16 consistent with applicable law and the terms of

17 the Corporation’s defined contribution plan.

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

19 Civil Service Retirement and Disability Fund—

20 ‘‘(i) such employee deductions and

21 agency contributions as are required by

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

23 United States Code, for those employees

24 who elect to retain their coverage under ei-
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1 ther CSRS or FERS pursuant to subpara2 graph (A);

3 ‘‘(ii) such additional agency contribu4 tions as are determined necessary by the

5 Office of Personnel Management to pay, in

6 combination with the sums under subpara7 graph (i), the ‘normal cost’ (determined

8 using dynamic assumptions) of retirement

9 benefits for those employees who elect to

10 retain their coverage under CSRS pursu11 ant to subparagraph (A), with the concept

12 of ‘normal cost’ being utilized consistent

13 with generally accepted actuarial standards

14 and principles; and

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

16 exceed two percent of the amounts under

17 subparagraphs (i) and (ii), as are deter18 mined necessary by the Office of Personnel

19 Management to pay the cost of administer20 ing retirement benefits for employees who

21 retire from the Corporation after the pri22 vatization date under either CSRS or

23 FERS, for their survivors, and for survi24 vors of employees of the Corporation who

25 die after the privatization date (which
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1 amounts shall be available to the Office of

2 Personnel Management as provided in sec3 tion 8348(a)(1)(B) of title 5, United

4 States Code).

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

6 Thrift Savings Fund such employee and agency

7 contributions as are required by section 8432 of

8 title 5, United States Code, for those employees

9 who elect to retain their coverage under FERS

10 pursuant to subparagraph (A).

11 ‘‘(D) For those employees of the Corpora12 tion who were subject to the Federal Employee

13 Health Benefits Program (FEHBP) on the day

14 immediately preceding the privatization date

15 pursuant to section 1305 as then in effect and

16 who elect to retain their coverage under either

17 CSRS or FERS pursuant to subparagraph (A),

18 it shall be their option as to whether to receive

19 health benefits from a health benefit plan estab20 lished by the Corporation or to continue without

21 interruption their coverage under the FEHBP,

22 in lieu of coverage by the Corporation’s health

23 benefit system.

24 ‘‘(E) The Corporation shall pay to the Em25 ployees Health Benefits Fund—
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1 ‘‘(i) such employee deductions and

2 agency contributions as are required by

3 section 8906(a)–(f) of title 5, United

4 States Code, for those employees who elect

5 to retain their coverage under FEHBP

6 pursuant to subparagraph (D); and

7 ‘‘(ii) such amounts as are determined

8 necessary by the Office of Personnel Man9 agement under subparagraph (F) to reim10 burse the Office of Personnel Management

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

12 of title 5, United States Code, for those

13 employees who elect to retain their cov14 erage under FEHBP pursuant to subpara15 graph (D).

16 ‘‘(F) The amounts required under sub17 paragraph (E)(ii) shall pay the Government

18 contributions for retired employees who retire

19 from the Corporation after the privatization

20 date under either CSRS or FERS, for survivors

21 of such retired employees, and for survivors of

22 employees of the Corporation who die after the

23 privatization date, with said amounts prorated

24 to reflect only that portion of the total service

25 of such employees and retired persons that was
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1 performed for the Corporation after the privat2 ization date.’’.

3 SEC. 5. MARKETING AND CONTRACTING AUTHORITY.

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

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

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

7 Act of 1954) to read as follows:

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

9 in this section, the Department may not market enriched

10 uranium (including low-enriched uranium derived from

11 highly enriched uranium) and uranium enrichment and re12 lated services after the privatization date.

13 ‘‘(1) RIGHT OF FIRST REFUSAL.—The Depart14 ment may itself or through a marketing agent of its

15 choice solicit a purchaser for enriched uranium (in16 cluding low-enriched uranium derived from highly

17 enriched uranium) and uranium enrichment and re18 lated services after the privatization date using com19 petitive bidding procedures. The Corporation may

20 obtain the enriched uranium (including low-enriched

21 uranium derived from highly enriched uranium) for

22 which the Department is seeking a purchaser by—

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

24 judgment of the Secretary, exceed the highest
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1 qualifying bid received by the Department or its

2 marketing agent; or

3 ‘‘(B) offering a bid that in the judgment of

4 the Secretary best serves the public interest for

5 financial, national security, or other reasons.

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

7 competitive process for selecting a marketing agent,

8 the Department may use the Corporation as its mar9 keting agent for entering into contracts for provid10 ing enriched uranium (including low-enriched ura11 nium derived from highly enriched uranium) and

12 uranium enrichment and related services.

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

14 this section shall be construed to limit the authority

15 of the Secretary to transfer, in a manner the Sec16 retary determines appropriate, enriched uranium (in17 cluding low-enriched uranium derived from highly

18 enriched uranium)—

19 ‘‘(A) between the Department and other

20 federal agencies if the material is transferred

21 for the use of the receiving agency and does not

22 meet commercial specifications;

23 ‘‘(B) between the Department and any en24 tity or person for national security purposes, as

25 determined by the Secretary; or
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1 ‘‘(C) between the Department and state or

2 local agencies and nonprofit, charitable or edu3 cational institutions for use other than for the

4 generation of electricity for commercial use.

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

6 any sale by the Department or its marketing agent

7 under paragraph (1) of enriched uranium (including

8 low-enriched uranium derived from highly enriched

9 uranium) or uranium enrichment or related services,

10 and after the President has determined such mate11 rial is not necessary to national security needs, the

12 Secretary shall determine by full rulemaking with

13 opportunity for public comment that—

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

15 such material will be a fair market price; and

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

17 have an adverse impact on the domestic mining

18 or enrichment industries taking into account

19 sales of enriched uranium (including low-en20 riched uranium derived from highly enriched

21 uranium) under the Amendment to the Agree22 ment Suspending the Antidumping Investiga23 tion on Uranium from the Russian Federation,

24 Department of Commerce Investigation No. A–

25 821–802, dated March 11, 1994, and the
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1 Agreement Between the Government of the

2 United States of America and the Government

3 of the Russian Federation Concerning the Dis4 position of Highly Enriched Uranium Extracted

5 from Nuclear Weapons.

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

7 Nothing in this section shall be interpreted to pre8 clude the Secretary from canceling a proposed sale

9 for any reason.

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

11 prior to any sale under this section, the Secretary

12 shall submit to Congress a current uranium inven13 tory report including updated information with re14 spect to the items listed in section 2296b–5 of title

15 42 United States Code, together with information

16 regarding the proposed sale or transfer.

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

18 sales under this section shall be deposited into the

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

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

21 U.S.C. 2297c(b)) is amended—

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

23 the following: ‘‘The privatization of the Corporation

24 shall not affect the terms of, or the rights or obliga-
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1 tions of the parties to, any such power purchase con2 tract.’’; and

3 (2) by adding at the end the following:

4 ‘‘(3) EFFECT OF TRANSFER.—

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

6 to paragraph (1), all rights, privileges, and ben7 efits under such contracts, agreements, and

8 leases, including the right to amend, modify, ex9 tend, revise, or terminate any of such contracts,

10 agreements, or leases were irrevocably assigned

11 to the Corporation for its exclusive benefit.

12 ‘‘(B) Notwithstanding the transfer pursu13 ant to paragraph (1), the United States shall

14 remain obligated to the parties to the contracts,

15 agreements, and leases transferred pursuant to

16 paragraph (1) for the performance of the obli17 gations of the United States thereunder during

18 the term thereof. The Corporation shall reim19 burse the United States for any amount paid in

20 respect of such obligations arising after the pri21 vatization date to the extent such amount is a

22 legal and valid obligation of the Corporation

23 then due.

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

25 material amendment, modification, extension,
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1 revision, replacement, or termination of any

2 contract, agreement, or lease transferred under

3 paragraph (1), the United States shall be re4 leased from further obligation under such con5 tract, agreement, or lease, except that such ac6 tion shall not release the United States from

7 obligations arising under such contract, agree8 ment, or lease prior to such time.

9 ‘‘(D) The Corporation shall establish prices

10 for its products, materials, and services pro11 vided to customers on a basis that will allow it

12 to attain the normal business objectives of a

13 profitmaking corporation for all uranium en14 richment contracts transferred pursuant to

15 paragraph (1).’’.

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

17 1403 (42 U.S.C. 2297c–2) is amended by adding at the

18 end the following:

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

20 LOW-LEVEL RADIOACTIVE WASTE.—

21 ‘‘(1) At the request of the generator, the De22 partment shall accept for treatment and disposal the

23 low-level radioactive waste generated—

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

25 operation of the facilities and related property
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1 leased by the Corporation pursuant to sub2 section (a); and

3 ‘‘(B) by any person licensed by the Nu4 clear Regulatory Commission to operate a ura5 nium enrichment facility under sections 53, 63,

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

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

8 ‘‘(2) The increase in costs of treatment and dis9 posal actually incurred by the Department which are

10 solely attributable to and result from the treatment

11 and disposal of such wastes received from the gener12 ator shall be paid to the Department by the genera13 tor, but in no event shall such payment exceed an

14 amount equal to that which would be charged by

15 commercial entities for the treatment and disposal of

16 such wastes.

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

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

19 disposal of such wastes or any portion thereof at any

20 other facility otherwise authorized by applicable laws

21 and regulations to treat or dispose of such wastes.

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

23 such wastes at any other facility shall be borne sole24 ly by the generator.’’.
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1 (d) TRANSFER OF URANIUM.—Title II (42 U.S.C.

2 2297 et seq.) is amended by redesignating section 1408

3 as section 1409 and inserting after section 1407 the fol4 lowing:

5 ‘‘SEC. 1408. TRANSFER OF URANIUM.

6 ‘‘(a) IN GENERAL.—In addition to material trans7 ferred to the Corporation pursuant to the Memorandum

8 of Agreement Relating to the Transfer of Functions and

9 Activities from the Department to the Corporation dated

10 December 15, 1994, the Secretary may, before the privat11 ization date, transfer to the Corporation without charge

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

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

14 natural uranium.

15 ‘‘(b) LIMITATION ON SALE OF LOW-ENRICHED URA16 NIUM AND NATURAL URANIUM TRANSFERRED BY THE

17 UNITED STATES.—

18 ‘‘(1) Natural uranium transferred pursuant to

19 subsection (a) by the United States to the Corpora20 tion may not be delivered for commercial end use

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

22 1998, the total amount of such natural uranium

23 from stockpiles held by the United States or the

24 Corporation delivered in any calendar year for com25 mercial end use may not exceed ten percent of the
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1 uranium hexafluoride equivalent content of the total

2 amount of natural uranium transferred pursuant to

3 subsection (a). In no event shall the total quantity

4 of such natural uranium delivered for commercial

5 end use exceed 4 million pounds uranium

6 hexafluoride equivalent in any calendar year.

7 ‘‘(2) Low-enriched uranium transferred pursu8 ant to subsection (a) by the United States to the

9 Corporation may be delivered for commercial end

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

11 work units in any calendar year.’’.

12 SEC. 6. PURCHASE OF HIGHLY ENRICHED URANIUM FROM

13 FORMER SOVIET UNION.

14 Section 1409 (as redesignated) of the Atomic Energy

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

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

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

18 change the Executive Agent pursuant to Article III of the

19 Agreement Between the Government of the United States

20 of America and the Government of the Russian Federation

21 Concerning the Disposition of Highly Enriched Uranium

22 Extracted from Nuclear Weapons, dated February 18,

23 1993, upon 30 days written notice to the other Party.

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

25 On the privatization date, the Executive Agent designated
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1 by the Government of the United States pursuant to Arti2 cle III of the Agreement Between the Government of the

3 United States of America and the Government of the Rus4 sian Federation Concerning the Disposition of Highly En5 riched Uranium Extracted from Nuclear Weapons, dated

6 February 18, 1993, shall be the Corporation.

7 ‘‘(c) AUTHORITIES AND OBLIGATIONS OF THE EXEC8 UTIVE AGENT.—The Executive Agent is authorized to ne9 gotiate the purchase of all highly enriched uranium made

10 available by any State of the former Soviet Union under

11 a government-to-government agreement or shall assume

12 the obligations of the Department or any previous Execu13 tive Agent under any contractual agreement that has been

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

15 Department or any previous Executive Agent. The Execu16 tive Agent may only purchase that material so long as the

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

18 commercial reactors.

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

20 authorized to enter into contracts for the resale of the en21 richment component of low-enriched uranium derived from

22 highly enriched uranium and purchased pursuant to an

23 agreement under subsection (c). Upon delivery by the Ex24 ecutive Agent of the United States of such low-enriched

25 uranium pursuant to a contract for the sale of the enrich-
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1 ment component of such low-enriched uranium, the Execu2 tive Agent of the United States shall deliver an amount

3 of uranium hexafluoride equivalent to the natural uranium

4 component of such low-enriched uranium to the Executive

5 Agent of the Russian Federation. The quantity of such

6 uranium hexafluoride delivered to the Executive Agent of

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

8 assay.

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

10 Executive Agent of the Russian Federation pursuant to

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

12 of the Russian Federation upon delivery of such material

13 to the Executive Agent of the Russian Federation.

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

15 Agent of the Russian Federation pursuant to subpara16 graph (d)(1) shall be deemed to be of Russian origin. Ex17 cept as otherwise provided in paragraph (d)(4), such ura18 nium hexafluoride shall be subject to the restrictions con19 tained in the Amendment to the Agreement Suspending

20 the Antidumping Investigation on Uranium from the Rus21 sian Federation, 59 Federal Register 15373, as such re22 strictions were in effect on March 11, 1994; and may also

23 be used in the United States for the purpose of overfeed24 ing in the operations of enrichment facilities or may be

25 resold for end use outside the United States.
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1 ‘‘(4) Beginning January 1, 2002, uranium

2 hexafluoride delivered to the Executive Agent of the Rus3 sian Federation pursuant to subparagraph (d)(1), may be

4 delivered for consumption by end users in the United

5 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

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

7 may be used for swaps and exchanges only where such

8 swaps and exchanges are documented to be conducted

9 solely for the purpose of facilitating the further processing

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

11 not be loaned.’’.

12 SEC. 7. PRIVATIZATION OF THE CORPORATION.

13 (a) ESTABLISHMENT OF PRIVATE CORPORATION.—

14 Chapter 25 (42 U.S.C. 2297d et seq.) is amended by add15 ing at the end the following new section:

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

17 ‘‘(a) ESTABLISHMENT.—

18 ‘‘(1) IN GENERAL.—In order to facilitate pri19 vatization, the Corporation may provided for the es20 tablishment of a private corporation organized under

21 the laws of the several States. Such corporation shall

22 have among its purposes the following:
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1 ‘‘(A) To help maintain a reliable and eco2 nomical domestic source of uranium enrichment

3 services.

4 ‘‘(B) To undertake any and all activities as

5 provided in its corporate charter.

6 ‘‘(2) AUTHORITIES.—Subject to applicable li7 censing, certification, or other requirements under

8 this Act, the corporation established pursuant to

9 paragraph (1) shall be authorized to—

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

11 to be enriched by others, or acquire enriched

12 uranium (including low-enriched uranium de13 rived from highly enriched uranium);

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

15 those research and development activities relat16 ed to uranium enrichment and related processes

17 and activities the corporation considers nec18 essary or advisable to maintain itself as a com19 mercial enterprise operating on a profitable and

20 efficient basis:

21 ‘‘(C) enter into transactions regarding ura22 nium, enriched uranium, or depleted uranium

23 with—
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1 ‘‘(i) persons licensed under section 53,

2 63, 103, or 104 in accordance with the li3 censes held by those persons;

4 ‘‘(ii) persons in accordance with, and

5 within the period of, an agreement for co6 operation arranged under section 123; or

7 ‘‘(iii) persons otherwise authorized by

8 law to enter into such transactions;

9 ‘‘(D) enter into contracts with persons li10 censed under section 53, 63, 103, or 104, for

11 as long as the corporation considers necessary

12 or desirable, to provide uranium or uranium en13 richment or related services;

14 ‘‘(E) enter into contracts to provide ura15 nium or uranium enrichment and related serv16 ices in accordance with, and within the period

17 of, an agreement for cooperation arranged

18 under section 123 or as otherwise authorized by

19 law; and

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

21 are permitted by law of the jurisdiction of in22 corporation of the corporation.

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

24 implementing the privatization, the Corporation may

25 transfer some or all of its assets and obligations and
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1 records to the corporation established pursuant to

2 this section, including—

3 ‘‘(A) all the Corporation’s assets and obli4 gations, including all of the Corporation’s

5 rights, duties, and obligations accruing subse6 quent to the privatization date under contracts,

7 agreements, and leases entered into by the Cor8 poration before the privatization date, including

9 all uranium enrichment contracts and power

10 purchase contracts;

11 ‘‘(B) all funds in accounts of the Corpora12 tion held by the Treasury or on deposit with

13 any bank or other financial institution;

14 ‘‘(C) all of the Corporation’s rights to pur15 chase power from the Secretary under the

16 power purchase contracts covered by section

17 1401(b)(2)(B); and

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

19 and obligations, accruing subsequent to the pri20 vatization date, under the lease agreement be21 tween the Department and the Corporation exe22 cuted by the Department and the Corporation

23 pursuant to section 1403; and

24 ‘‘(E) all of the Corporation’s records, in25 cluding all of the papers and other documentary
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1 materials, regardless of physical form or char2 acteristics, made or received by the Corpora3 tion.

4 ‘‘(4) MERGER OR CONSOLIDATION.—For pur5 poses of implementing the privatization, the Cor6 poration may merge or consolidate with the corpora7 tion established pursuant to subsection (a)(1) if such

8 action is contemplated by the plan for privatization

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

10 The Board shall have exclusive authority to approve

11 such merger or consolidation, and to take all further

12 actions necessary to consummate such merger or

13 consolidation, and no action by or in respect of

14 shareholders shall be required. The merger or con15 solidation shall be effected in accordance with, and

16 have the effects of a merger or consolidation under,

17 the laws of the jurisdiction of incorporation of the

18 surviving corporation, and all rights and benefits

19 provided under this title to the Corporation shall

20 apply to the surviving corporation as if it were the

21 Corporation.

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

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

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

25 any person by reason of the transfer of the Cor-
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1 poration’s assets to, or the Corporation’s merg2 er with, the corporation established pursuant to

3 subsection (a)(1) in connection with the privat4 ization.

5 ‘‘(B) CANCELLATION OF DEBT AND COM6 MON STOCK.—No income, gain, or loss shall be

7 recognized by any person by reason of any can8 cellation of any obligation or common stock of

9 the Corporation in connection with the privat10 ization.

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

12 Prior to privatization, the activities of the corpora13 tion established pursuant to subsection (a)(1) shall

14 be limited to those contemplated by the privatization

15 plan approved by the President under section

16 1502(b).

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

18 regulation of radiological and nonradiological hazards

19 under the Occupational Safety and Health Act of 1970,

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

21 shall be treated in the same manner as other employers

22 licensed by the Nuclear Regulatory Commission. Any

23 interagency agreement entered into between the Nuclear

24 Regulatory Commission and the Occupational Safety and

25 Health Administration governing the scope of their respec-
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1 tive regulatory authorities shall apply to the corporation

2 as if the corporation were a Nuclear Regulatory Commis3 sion licensee.

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

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

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

7 be an agency of the United States Government and

8 shall not be a Government corporation or Govern9 ment-controlled corporation. For purposes of United

10 States antitrust laws, the performance by the cor11 poration established pursuant to subsection (a)(1) of

12 a ‘matched import’ contract shall be considered to

13 have occurred prior to the privatization date, if at

14 the time of privatization, such contract had been

15 agreed to by the parties in all material terms and

16 confirmed by the United States Department of Com17 merce under the Amendment to the Agreement Sus18 pending the Antidumping Investigation on Uranium

19 from the Russian Federation, Department of Com20 merce Investigation No. A–821–802, dated March

21 11, 1994.

22 ‘‘(2) NO RECOURSE AGAINST UNITED

23 STATES.—Obligations of the corporation established

24 pursuant to subsection (a)(1) shall not be obliga25 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.

14 SECTION 1. SHORT TITLE.

15 This Act may be cited as the ‘‘USEC Privatization

16 Act’’.

17 SEC. 2. PURPOSE.

18 The purpose of this chapter is to transfer the interest

19 of the United States in the United States Enrichment Cor20 poration to the private sector in a manner that provides

21 for the long-term viability of the Corporation, provides for

22 the continuation by the Corporation of the operation of the

23 Department of Energy’s gaseous diffusion plants, provides

24 for the protection of the public interest in maintaining a

25 reliable and economical domestic source of uranium mining
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1 and enrichment services, and, to the extent not inconsistent

2 with such purposes, secures the maximum proceeds to the

3 United States.

4 SEC. 3. DEFINITIONS.

5 For purposes of this title:

6 (1) The term ‘‘AVLIS’’ means atomic vapor laser

7 isotope separation technology.

8 (2) The term ‘‘Corporation’’ means the United

9 States Enrichment Corporation and, unless the con10 text otherwise requires, includes the private corpora11 tion and any successor thereto following privatiza12 tion.

13 (3) The term ‘‘gaseous diffusion plants’’ means

14 the Paducah Gaseous Diffusion Plant at Paducah,

15 Kentucky and the Portsmouth Gaseous Diffusion

16 Plant at Piketon, Ohio.

17 (4) The term ‘‘highly enriched uranium’’ means

18 uranium enriched to 20 percent or more of the ura19 nium-235 isotope.

20 (5) The term ‘‘low-enriched uranium’’ means

21 uranium enriched to less than 20 percent of the ura22 nium-235 isotope, including that which is derived

23 from highly enriched uranium.

24 (6) The term ‘‘low-level radioactive waste’’ has

25 the meaning given such term in section 2(9) of the
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1 Low-Level Radioactive Waste Policy Act (42 U.S.C.

2 2021b(9)).

3 (7) The term ‘‘private corporation’’ means the

4 corporation established under section 5.

5 (8) The term ‘‘privatization’’ means the transfer

6 of ownership of the Corporation to private investors.

7 (9) The term ‘‘privatization date’’ means the

8 date on which 100 percent of the ownership of the

9 Corporation has been transferred to private investors.

10 (10) The term ‘‘public offering’’ means an under11 written offering to the public of the common stock of

12 the private corporation pursuant to section 4.

13 (11) The ‘‘Russian HEU Agreement’’ means the

14 Agreement Between the Government of the United

15 States of America and the Government of the Russian

16 Federation Concerning the Disposition of Highly En17 riched Uranium Extracted from Nuclear Weapons,

18 dated February 18, 1993.

19 (12) The term ‘‘Secretary’’ means the Secretary

20 of Energy.

21 (13) The ‘‘Suspension Agreement’’ means the

22 Agreement to Suspend the Antidumping Investigation

23 on Uranium from the Russian Federation, as amend24 ed.
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1 (14) The term ‘‘uranium enrichment’’ means the

2 separation of uranium of a given isotopic content

3 into 2 components, 1 having a higher percentage of a

4 fissile isotope and 1 having a lower percentage.

5 SEC. 4. SALE OF THE CORPORATION.

6 (a) AUTHORIZATION.—The Board of Directors of the

7 Corporation, with the approval of the Secretary of the

8 Treasury, shall transfer ownership of the assets and obliga9 tions of the Corporation to the private corporation estab10 lished under section 5 (which may be consummated through

11 a merger or consolidation effected in accordance with, and

12 having the effects provided under, the laws of the state of

13 incorporation of the private corporation, as if the Corpora14 tion were incorporated thereunder).

15 (b) BOARD DETERMINATION.—The Board, with the

16 approval of the Secretary of the Treasury, shall select the

17 method of transfer and establish terms and conditions for

18 the transfer that will provide the maximum proceeds to the

19 Treasury of the United States and will provide for the long20 term viability of the private corporation, the continued op21 eration of the gaseous diffusion plants, and the public inter22 est in maintaining a reliable and economical domestic ura23 nium mining and enrichment industries.

24 (c) APPLICATION OF SECURITIES LAWS.—Any offering

25 or sale of securities by the private corporation shall be sub-
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1 ject to the Securities Act of 1933 (15 U.S.C. 77a et seq.),

2 the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.),

3 and the provisions of the Constitution and laws of any

4 State, territory, or possession of the United States relating

5 to transactions in securities.

6 (d) PROCEEDS.—Proceeds from the sale of the United

7 States’ interest in the Corporation shall be—

8 (1) deposited in the general fund of the Treasury;

9 (2) included in the budget baseline required by

10 the Balanced Budget and Emergency Deficit Control

11 Act of 1985; and

12 (3) counted as an offset to direct spending for

13 purposes of section 252 of such Act, notwithstanding

14 section 257(e) of such Act.

15 (e) EXPENSES.—Expenses of privatization shall be

16 paid from Corporation revenue accounts in the United

17 States Treasury.

18 SEC. 5. ESTABLISHMENT OF PRIVATE CORPORATION.

19 (a) INCORPORATION.—(1) The directors of the Cor20 poration shall establish a private for-profit corporation

21 under the laws of a state for the purpose of receiving the

22 assets and obligations of the Corporation at privatization

23 and continuing the business operations of the Corporation

24 following privatization.
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1 (2) The directors of the Corporation may serve as

2 incorporators of the private corporation and shall take all

3 steps necessary to establish the private corporation, includ4 ing the filing of articles of incorporation consistent with

5 the provisions of this Act.

6 (3) Employees and officers of the Corporation (includ7 ing members of the Board of Directors) acting in accordance

8 with this section on behalf of the private corporation shall

9 be deemed to be acting in their official capacities as employ10 ees or officers of the Corporation for purposes of 18 U.S.C.

11 205.

12 (b) STATUS OF THE PRIVATE CORPORATION.—(1) The

13 private corporation shall not be an agency, instrumentality,

14 or establishment of the United States, a Government cor15 poration, or a Government-controlled corporation.

16 (2) Except as otherwise provided by this Act, financial

17 obligations of the private corporation shall not be obliga18 tions of, or guaranteed as to principal or interest by, the

19 Corporation or the United States, and the obligations shall

20 so plainly state.

21 (3) No action under section 1491 of title 28, United

22 States Code, shall be allowable against the United States

23 based on actions of the private corporation.

24 (c) APPLICATION OF POST-GOVERNMENT EMPLOYMENT

25 RESTRICTIONS.—Beginning on the privatization date, the
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1 restrictions of 18 U.S.C. 207 (a), (b), (c), and (d) shall not

2 apply to the acts of an individual done in carrying out

3 official duties as a director, officer, or employee of the pri4 vate corporation, if the individual was an officer or em5 ployee of the Corporation (including a director) continu6 ously during the 45 days prior to the privatization date.

7 (d) DISSOLUTION.—In the event that the privatization

8 does not occur, the Corporation will provide for the dissolu9 tion of the private corporation within 1 year of the private

10 corporation’s incorporation unless the Secretary of the

11 Treasury or his delegate, upon the Corporation’s request,

12 agrees to delay any such dissolution for an additional year.

13 SEC. 6. TRANSFERS TO THE PRIVATE CORPORATION.

14 Concurrennt with privatization, the Corporation shall

15 transfer to the private corporation—

16 (1) the lease of the gaseous diffusion plants in

17 accordance with section 7,

18 (2) all personal property and inventories of the

19 Corporation,

20 (3) all contracts, agreements, and leases under

21 section 8(a),

22 (4) the Corporation’s right to purchase power

23 from the Secretary under section 8(b),

24 (5) such funds in accounts of the Corporation

25 held by the Treasury or on deposit with any bank or
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1 other financial institution as approved by the Sec2 retary of the Treasury, and

3 (6) all of the Corporation’s records, including all

4 of the papers and other documentary materials, re5 gardless of physical form or characteristics, made or

6 received by the Corporation.

7 SEC. 7. LEASING OF GASEOUS DIFFUSION FACILITIES.

8 (a) TRANSFER OF LEASE.—Concurrent with privat9 ization, the Corporation shall transfer to the private cor10 poration the lease of the gaseous diffusion plants and relat11 ed property for the remainder of the term of such lease in

12 accordance with the terms of such lease.

13 (b) RENEWAL.—The private corporation shall have the

14 exclusive option to lease the gaseous diffusion plants and

15 related property for additional periods following the expira16 tion of the initial term of the lease.

17 (c) EXCLUSION OF FACILITIES FOR PRODUCTION OF

18 HIGHLY ENRICHED URANIUM.—The Secretary shall not

19 lease to the private corporation any facilities necessary for

20 the production of highly enriched uranium but may, subject

21 to the requirements of the Atomic Energy Act of 1954 (42

22 U.S.C. 2011 et seq.), grant the Corporation access to such

23 facilities for purposes other than the production of highly

24 enriched uranium.
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1 (d) DOE RESPONSIBILITY FOR PREEXISTING CONDI2 TIONS.—The payment of any costs of decontamination and

3 decommissioning, response actions, or corrective actions

4 with respect to conditions existing before July 1, 1993, at

5 the gaseous diffusion plants shall remain the sole respon6 sibility of the Secretary.

7 (e) ENVIRONMENTAL AUDIT.—For purposes of sub8 section (d), the conditions existing before July 1, 1993, at

9 the gaseous diffusion plants shall be determined from the

10 environmental audit conducted pursuant to section 1403(e)

11 of the Atomic Energy Act of 1954 (42 U.S.C. 2297c–2(e)).

12 (f) TREATMENT UNDER PRICE-ANDERSON PROVI13 SIONS.—Any lease executed between the Secretary and the

14 Corporation or the private corporation, and any extension

15 or renewal thereof, under this section shall be deemed to

16 be a contract for purposes of section 170d. of the Atomic

17 Energy Act of 1954 (42 U.S.C. 2210(d)).

18 (g) WAIVER OF EIS REQUIREMENT.—The execution or

19 transfer of the lease between the Secretary and the Corpora20 tion or the private corporation, and any extension or re21 newal thereof, shall not be considered a major Federal ac22 tion significantly affecting the quality of the human envi23 ronment for purposes of section 102 of the National Envi24 ronmental Policy Act of 1969 (42 U.S.C. 4332).
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1 SEC. 8. TRANSFER OF CONTRACTS.

2 (a) TRANSFER OF CONTRACTS.—Concurrent with pri3 vatization, the Corporation shall transfer to the private cor4 poration all contracts, agreements, and leases, including all

5 uranium enrichment contracts, that were—

6 (1) transferred by the Secretary to the Corpora7 tion pursuant to section 1401(b) of the Atomic En8 ergy Act of 1954 (42 U.S.C. 2297c(b)), or

9 (2) entered into by the Corporation before the

10 privatization date.

11 (b) NONTRANSFERABLE POWER CONTRACTS.—The

12 Corporation shall transfer to the private corporation the

13 right to purchase power from the Secretary under the power

14 purchase contracts for the gaseous diffusion plants executed

15 by the Secretary before July 1, 1993. The Secretary shall

16 continue to receive power for the gaseous diffusion plants

17 under such contracts and shall continue to resell such power

18 to the private corporation at cost during the term of such

19 contracts.

20 (c) EFFECT OF TRANSFER.—(1) Notwithstanding sub21 section (a), the United States shall remain obligated to the

22 parties to the contracts, agreements, and leases transferred

23 under subsection (a) for the performance of its obligations

24 under such contracts, agreements, or leases during their

25 terms. Performance of such obligations by the private cor-
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1 poration shall be considered performance by the United

2 States.

3 (2) If a contract, agreement, or lease transferred under

4 subsection (a) is terminated, extended, or materially

5 amended after the privatization date—

6 (A) the private corporation shall be responsible

7 for any obligation arising under such contract, agree8 ment, or lease after any extension or material amend9 ment, and

10 (B) the United States shall be responsible for

11 any obligation arising under the contract, agreement,

12 or lease before the termination, extension, or material

13 amendment.

14 (3) The private corporation shall reimburse the United

15 States for any amount paid by the United States under

16 a settlement agreement entered into with the consent of the

17 private corporation or under a judgment, if the settlement

18 or judgment—

19 (A) arises out of an obligation under a contract,

20 agreement, or lease transferred under subsection (a),

21 and

22 (B) arises out of actions of the private corpora23 tion between the privatization date and the date of a

24 termination, extension, or material amendment of

25 such contract, agreement, or lease.
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1 (d) PRICING.—The Corporation may establish prices

2 for its products, materials, and services provided to cus3 tomers on a basis that will allow it to attain the normal

4 business objectives of a profitmaking corporation.

5 SEC. 9. LIABILITIES.

6 (a) LIABILITY OF THE UNITED STATES.—(1) Except

7 as otherwise provided in this Act, all liabilities arising out

8 of the operation of the uranium enrichment enterprise be9 fore July 1, 1993, shall remain the direct liabilities of the

10 Secretary.

11 (2) Except as provided in subsection (a)(3) or other12 wise provided in a memorandum of agreement entered into

13 by the Corporation and the Office of Management and

14 Budget prior to the privatization date, all liabilities arising

15 out of the operation of the Corporation between July 1,

16 1993, and the privatization date shall remain the direct

17 liabilities of the United States.

18 (3) All liabilities arising out of the disposal of depleted

19 uranium generated by the Corporation between July 1,

20 1993, and the privatization date shall become the direct li21 abilities of the Secretary.

22 (4) Any stated or implied consent for the United

23 States, or any agent or officer of the United States, to be

24 sued by any person for any legal, equitable, or other relief
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1 with respect to any claim arising out of, or resulting from,

2 the privatization of the Corporation is hereby withdrawn.

3 (5) To the extent that any claim against the United

4 States under this section is of the type otherwise required

5 by federal statute or regulation to be presented to a federal

6 agency or official for adjudication or review, such claim

7 shall be presented to the Department of Energy in accord8 ance with procedures to be established by the Secretary.

9 Nothing in this paragraph shall be construed to impose on

10 the Department of Energy liability to pay any claim pre11 sented pursuant to this paragraph.

12 (6) The Attorney General shall represent the United

13 States in any action seeking to impose liability under this

14 subsection.

15 (b) LIABILITY OF THE CORPORATION.—Notwithstand16 ing any provision of any agreement to which the Corpora17 tion is a party, the Corporation shall not be considered in

18 breach, default, or violation of any agreement because of

19 the transfer of such agreement to the private corporation

20 under section 8 or any other action the Corporation is re21 quired to take under this Act.

22 (c) LIABILITY OF THE PRIVATE CORPORATION.—Ex23 cept as provided in this Act, the private corporation shall

24 be liable for any liabilities arising out of its operations after

25 the privatization date.
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1 (d) LIABILITY OF OFFICERS AND DIRECTORS.—(1) No

2 officer, director, employee, or agent of the Corporation shall

3 be liable in any civil proceeding to any party in connection

4 with any action taken in connection with the privatization

5 if, with respect to the subject matter of the action, suit, or

6 proceeding, such person was acting within the scope of his

7 employment.

8 (2) This subsection shall not apply to claims arising

9 under the Securities Act of 1933 (15 U.S.C. 77a. et seq.),

10 the Securities Exchange Act of 1934 (15 U.S.C. 78a. et seq.),

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

12 or possession of the United States relating to transactions

13 in securities.

14 SEC. 10. EMPLOYEE PROTECTIONS.

15 (a) CONTRACTOR EMPLOYEES.—(1) Privatization

16 shall not diminish the accrued, vested pension benefits of

17 employees of the Corporation’s operating contractor at the

18 two gaseous diffusion plants.

19 (2) In the event that the private corporation termi20 nates or changes the contractor at either or both of the gase21 ous diffusion plants, the plan sponsor or other appropriate

22 fiduciary of the pension plan covering employees of the

23 prior operating contractor shall arrange for the transfer of

24 all plan assets and liabilities relating to accrued pension

25 benefits of such plan’s participants and beneficiaries from
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1 such plant to a pension plan sponsored by the new contrac2 tor or the private corporation or a joint labor-management

3 plan, as the case may be.

4 (3) In addition to any obligations arising under the

5 National Labor Relations Act (29 U.S.C. 151 et seq.), any

6 employer (including the private corporation if it operates

7 a gaseous diffusion plant without a contractor or any con8 tractor of the private corporation) at a gaseous diffusion

9 plant shall—

10 (A) abide by the terms of any unexpired collec11 tive bargaining agreement covering employees in bar12 gaining units at the plant and in effect on the privat13 ization date until the stated expiration or termi14 nation date of the agreement; or

15 (B) in the event a collective bargaining agree16 ment is not in effect upon the privatization date, have

17 the same bargaining obligations under section 8(d) of

18 the National Labor Relations Act (29 U.S.C. 158(d))

19 as it had immediately before the privatization date.

20 (4) If the private corporation replaces its operating

21 contractor at a gaseous diffusion plant, the new employer

22 (including the new contractor or the private corporation if

23 it operates a gaseous diffusion plant without a contractor)

24 shall—
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1 (A) offer employment to non-management em2 ployees of the predecessor contractor to the extent that

3 their jobs still exist or they are qualified for new jobs,

4 and

5 (B) abide by the terms of the predecessor contrac6 tor’s collective bargaining agreement until the agree7 ment expires or a new agreement is signed.

8 (5) In the event of a plant closing or mass layoff (as

9 such terms are defined in section 2101(a)(2) and (3) of title

10 29, United States Code) at either of the gaseous diffusion

11 plants, the Secretary of Energy shall treat any adversely

12 affected employee of an operating contractor at either plant

13 who was an employee at such plant on July 1, 1993, as

14 a Department of Energy employee for purposes of sections

15 3161 and 3162 of the National Defense Authorization Act

16 for Fiscal Year 1993 (42 U.S.C. 7274h–7274i).

17 (6)(A) The Secretary and the private corporation shall

18 cause the post-retirement health benefits plan provider (or

19 its successor) to continue to provide benefits for persons em20 ployed by an operating contractor at either of the gaseous

21 diffusion plants in an economically efficient manner and

22 at substantially the same level of coverage as eligible retirees

23 are entitled to receive on the privatization date.

24 (B) Person eligible for coverage under subparagraph

25 (A) shall be limited to—
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1 (i) persons who retired from active employment

2 at one of the gaseous diffusion plants on or before the

3 privatization date as vested participants in a pension

4 plan maintained either by the Corporation’s operat5 ing contractor or by a contractor employed prior to

6 July 1, 1993, by the Department of Energy to operate

7 a gaseous diffusion plant; and

8 (ii) persons who are employed by the Corpora9 tion’s operating contractor on or before the privatiza10 tion date and are vested participants in a pension

11 plan maintained either by the Corporation’s operat12 ing contractor or by a contractor employed prior to

13 July 1, 1993, by the Department of Energy to operate

14 a gaseous diffusion plant.

15 (C) The Secretary shall fund the entire cost of post16 retirement health benefits for persons who retired from em17 ployment with an operating contractor prior to July 1,

18 1993.

19 (D) The Secretary and the Corporation shall fund the

20 cost of post-retirement health benefits for persons who retire

21 from employment with an operating contractor on or after

22 July 1, 1993, in proportion to the retired person’s years

23 and months of service at a gaseous diffusion plant under

24 their respective management.
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1 (7)(A) Any suit under this subsection alleging a viola2 tion of an agreement between an employer and a labor orga3 nization shall be brought in accordance with section 301

4 of the Labor Management Relations Act (29 U.S.C. 185).

5 (B) Any charge under this subsection alleging an un6 fair labor practice violative of section 8 of the National

7 Labor Relations Act (29 U.S.C. 158) shall be pursued in

8 accordance with section 10 of the National Labor Relations

9 Act (29 U.S.C. 160).

10 (C) Any suit alleging a violation of any provision of

11 this subsection, to the extent it does not allege a violation

12 of the National Labor Relations Act may be brought in any

13 district court of the United States having jurisdiction over

14 the parties, without regard to the amount in controversy

15 or the citizenship of the parties.

16 (b) FORMER FEDERAL EMPLOYEES.—(1)(A) An em17 ployee of the Corporation that was subject to either the Civil

18 Service Retirement System (CSRS) or the Federal Employ19 ees’ Retirement System (FERS) on the day immediately

20 preceding the privatization date shall elect—

21 (i) to retain their coverage under either CSRS or

22 FERS, as applicable, in lieu of coverage by the Cor23 poration’s retirement system, or
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1 (ii) to receive a deferred annuity or lump-sum

2 benefit payable to a terminated employee under

3 CSRS or FERS, as applicable.

4 (B) An employee that makes the election under sub5 paragraph (A)(ii) shall have the option to transfer the bal6 ance in their Thrift Savings Plan account to a defined con7 tribution plan under the Corporation’s retirement system,

8 consistent with applicable law and the terms of the Cor9 poration’s defined contribution plan.

10 (2) The Corporation shall pay to the Civil Service Re11 tirement and Disability Fund—

12 (A) such employee deductions and agency con13 tributions as are required by sections 8334, 8422, and

14 8423 of title 5, United States Code, for those employ15 ees who elect to retain their coverage under either

16 CSRS or FERS pursuant to paragraph (1);

17 (B) such additional agency contributions as are

18 determined necessary by the Office of Personnel Man19 agement to pay, in combination with the sums under

20 subparagraph (A), the ‘‘normal cost’’ (determined

21 using dynamic assumptions) of retirement benefits for

22 those employees who elect to retain their coverage

23 under CSRS pursuant to paragraph (1), with the

24 concept of ‘‘normal cost’’ being used consistent with
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1 generally accepted actuarial standards and prin2 ciples; and

3 (C) such additional amounts, not to exceed two

4 percent of the amounts under subparagraphs (A) and

5 (B), as are determined necessary by the Office of Per6 sonnel Management to pay the cost of administering

7 retirement benefits for employees who retire from the

8 Corporation after the privatization date under either

9 CSRS or FERS, for their survivors, and for survivors

10 of employees of the Corporation who die after the pri11 vatization date (which amounts shall be available to

12 the Office of Personnel Management as provided in

13 section 8348(a)(1)(B) of title 5, United States Code).

14 (3) The Corporation shall pay to the Thrift Savings

15 Fund such employee and agency contributions as are re16 quired by section 8432 of title 5, United States Code, for

17 those employees who elect to retain their coverage under

18 FERS pursuant to paragraph (1).

19 (4) Any employee of the Corporation who was subject

20 to the Federal Employee Health Benefit Program (FEHBP)

21 on the day immediately preceding the privatization date

22 and who elects to retain coverage under either CSRS or

23 FERS pursuant to paragraph (1) shall have the option to

24 receive health benefits from a health benefit plan established

25 by the Corporation or to continue without interruption cov-
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1 erage under the FEHBP, in lieu of coverage by the Corpora2 tion’s health benefit system.

3 (5) The Corporation shall pay to the Employees Health

4 Benefits Fund—

5 (A) such employee deductions and agency con6 tributions as are required by section 8906(a)–(f) of

7 title 5, United States Code, for those employees who

8 elect to retain their coverage under FEHBP pursuant

9 to paragraph (4); and

10 (B) such amounts as are determined necessary

11 by the Office of Personnel Management under para12 graph (6) to reimburse the Office of Personnel Man13 agement for contributions under section 8906(g)(1) of

14 title 5, United States Code, for those employees who

15 elect to retain their coverage under FEHBP pursuant

16 to paragraph (4).

17 (6) The amounts required under paragraph (5)(B)

18 shall pay the Government contributions for retired employ19 ees who retire from the Corporation after the privatization

20 date under either CSRS or FERS, for survivors of such re21 tired employees, and for survivors of employees of the Cor22 poration who die after the privatization date, with said

23 amounts prorated to reflect only that portion of the total

24 service of such employees and retired persons that was per25 formed for the Corporation after the privatization date.
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1 SEC. 11. OWNERSHIP LIMITATIONS.

2 No director, officer, or employee of the Corporation

3 may acquire any securities, or any rights to acquire any

4 securities of the private corporation on terms more favor5 able than those offered to the general public—

6 (1) in a public offering designed to transfer own7 ership of the Corporation to private investors,

8 (2) pursuant to any agreement, arrangement, or

9 understanding entered into before the privatization

10 date, or

11 (3) before the election of the directors of the pri12 vate corporation.

13 SEC. 12. URANIUM TRANSFERS AND SALES.

14 (a) TRANSFERS AND SALES BY THE SECRETARY.—The

15 Secretary shall not provide enrichment services or transfer

16 or sell any uranium (including natural uranium con17 centrates, natural uranium hexafluoride, or enriched ura18 nium in any form) to any person except as consistent with

19 this section.

20 (b) RUSSIAN HEU.—(1) On or before December 31,

21 1996, the United States Executive Agent under the Russian

22 HEU Agreement shall transfer to the Secretary without

23 charge title to an amount of uranium hexafluoride equiva24 lent to the natural uranium component of low-enriched ura25 nium derived from at least 18 metric tons of highly enriched

26 uranium purchased from the Russian Executive Agent
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1 under the Russian HEU Agreement. The quantity of such

2 uranium hexafluoride delivered to the Secretary shall be

based on a tails assay of 0.30 U235 3 . Uranium hexafluoride

4 transferred to the Secretary pursuant to this paragraph

5 shall be deemed under United States law, for all purposes

6 to be of Russian origin.

7 (2) Within 7 years of the date of enactment of this

8 Act, the Secretary shall sell, and receive payment for, the

9 uranium hexafluoride transferred to the Secretary pursuant

10 to paragraph (1). Such uranium hexafluoride shall be

11 sold—

12 (A) at any time for use in the United States for

13 the purpose of overfeeding;

14 (B) at any time for end use outside the United

15 States; or,

16 (C) in calendar year 2001 for consumption by

17 end users in the United States not prior to January

18 1, 2002, in volumes not to exceed 3,000,000 pounds

19 U3O8 equivalent per year.

20 (3) With respect to all enriched uranium delivered to

21 the United States Executive Agent under the Russian HEU

22 Agreement on or after January 1, 1997, the United States

23 Executive Agent shall, upon request of the Russian Execu24 tive Agent, enter into an agreement to deliver concurrently

25 to the Russian Executive Agent an amount of uranium
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1 hexafluoride equivalent to the natural uranium component

2 of such uranium. An agreement executed pursuant to a re3 quest of the Russian Executive Agent, as contemplated in

4 this paragraph, may pertain to any deliveries due during

5 any period remaining under the Russian HEU Agreement.

6 The quantity of such uranium hexafluoride delivered to the

7 Russian Executive Agent shall be based on a tails assay

of 0.30 U235 8 . Title to uranium hexafluoride delivered to the

9 Russian Executive Agent pursuant to this paragraph shall

10 transfer to the Russian Executive Agent upon delivery of

11 such material to the Russian Executive Agent, with such

12 delivery to take place at a North American facility des13 ignated by the Russian Executive Agent. Uranium

14 hexafluoride delivered to the Russian Executive Agent pur15 suant to this paragraph shall be deemed under United

16 States law for all purposes to be of Russian origin. Such

17 uranium hexafluoride may be sold to any person or entity

18 for delivery and use in the United States only as permitted

19 in subsections (b)(5), (b)(6) and (b)(7) of this section.

20 (4) In the event that the Russian Executive Agent does

21 not exercise its right to enter into an agreement to take de22 livery of the natural uranium component of any low-en23 riched uranium, as contemplated in paragraph (3), within

24 90 days of the date such low-enriched uranium is delivered

25 to the United States Executive Agent, then the United
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1 States Executive Agent shall engage an independent entity

2 through a competitive selection process to auction an

3 amount of uranium hexafluoride or U3O8 (in the event that

4 the conversion component of such hexafluoride has pre5 viously been sold) equivalent to the natural uranium com6 ponent of such low-enriched uranium. Such independent en7 tity shall sell such uranium hexafluoride in one or more

8 lots to any person or entity to maximize the proceeds from

9 such sales, for disposition consistent with the limitations

10 set forth in this subsection. The independent entity shall

11 pay to the Russian Executive Agent the proceeds of any

12 such auction less all reasonable transaction and other ad13 ministrative costs. The quantity of such uranium

14 hexafluoride auctioned shall be based on a tails assay of

0.30 U235 15 . Title to uranium hexafluoride auctioned pursu16 ant to this paragraph shall transfer to the buyer of such

17 material upon delivery of such material to the buyer. Ura18 nium hexafluoride auctioned pursuant to this paragraph

19 shall be deemed under United States law for all purposes

20 to be of Russian origin.

21 (5) Except as provided in paragraphs (6) and (7), ura22 nium hexafluoride delivered to the Russian Executive Agent

23 under paragraph (3) or auctioned pursuant to paragraph

24 (4), may not be delivered for consumption by end users in

25 the United States either directly or indirectly prior to Jan-
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1 uary 1, 1998 and thereafter only in accordance with the

2 following schedule:

Annual Maximum Deliveries to End Users

Year (millions lbs. U3O8 equivalent)

1998 ......................................................................................... 2

1999 ......................................................................................... 4

2000 ......................................................................................... 6

2001 ......................................................................................... 8

2002 ......................................................................................... 10

2003 ......................................................................................... 12

2004 ......................................................................................... 14

2005 ......................................................................................... 16

2006 ......................................................................................... 17

2007 ......................................................................................... 18

2008 ......................................................................................... 19

2009 and each year thereafter ............................................... 20

3 (6) Uranium hexafluoride delivered to the Russian Ex4 ecutive Agent under paragraph (3) or auctioned pursuant

5 to paragraph (4) may be sold at any time as Russian-ori6 gin natural uranium in a matched sale pursuant to the

7 Suspension Agreement, and in such case shall not be count8 ed against the annual maximum deliveries set forth in

9 paragraph (5).

10 (7) Uranium hexafluoride delivered to the Russian Ex11 ecutive Agent under paragraph (3) or auctioned pursuant

12 to paragraph (4) may be sold at any time for use in the

13 United States for the purpose of overfeeding in the oper14 ations of enrichment facilities.

15 (8) Nothing in this subsection (b) shall restrict the sale

16 of the conversion component of such uranium hexafluoride.

17 Material sold pursuant to paragraph (5) shall not be

18 swapped, exchanged or loaned.
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1 (9) The Secretary of Commerce shall have responsibil2 ity for the administration and enforcement of the limita3 tions set forth in this subsection. The Secretary of Com4 merce may require any person to provide any certifications,

5 information, or take any action that may be necessary to

6 enforce these limitations. The United States Customs Serv7 ice shall maintain and provide any information required

8 by the Secretary of Commerce and shall take any action

9 requested by the Secretary of Commerce which is necessary

10 for the administration and enforcement of the uranium de11 livery limitations set forth in this section.

12 (10) The President shall monitor the actions of the

13 United States Executive Agent under the Russian HEU

14 Agreement and shall report to the Congress not later than

15 December 31 of each year on the effect the low-enriched ura16 nium delivered under the Russian HEU Agreement is hav17 ing on the domestic uranium mining, conversion, and en18 richment industries, and the operation of the gaseous diffu19 sion plants. Such report shall include a description of ac20 tions taken or proposed to be taken by the President to pre21 vent or mitigate any material adverse impact on such in22 dustries or any loss of employment at the gaseous diffusion

23 plants as a result of the Russian HEU Agreement.

24 (c) TRANSFERS TO THE CORPORATION.—
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1 (1) The Secretary shall transfer to the Corpora2 tion without charge up to 50 metric tons of enriched

3 uranium and up to 7,000 metric tons of natural ura4 nium from the Department of Energy’s stockpile, sub5 ject to the restrictions in subsection (c)(2).

6 (2) The Corporation shall not deliver for com7 mercial end use in the United States—

8 (A) any of the uranium transferred under

9 this subsection before January 1, 1998;

10 (B) more than 10 percent of the uranium

11 (by uranium hexafluoride equivalent content)

12 transferred under this subsection or more than

13 4,000,000 pounds, whichever is less, in any cal14 endar year after 1997; or

15 (C) more than 800,000 separative work

16 units contained in low-enriched uranium trans17 ferred under this subsection in any calendar

18 year.

19 (d) INVENTORY SALES.—(1) In addition to the trans20 fers authorized under subsections (c) and (e), the Secretary

21 may, from time to time, sell natural and low-enriched ura22 nium (including low-enriched uranium derived from highly

23 enriched uranium) from the Department of Energy’s stock24 pile.
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1 (2) Except as provided in subsections (b), (c), and (e),

2 no sale or transfer of natural or low-enriched uranium shall

3 be made unless—

4 (A) the President determines that the material is

5 not necessary to national security needs,

6 (B) the Secretary determines that the sale of the

7 material will not have material adverse impact on the

8 domestic uranium mining, conversion, or enrichment

9 industry, taking into account the sales of uranium

10 under the Russian HEU Agreement and the Suspen11 sion Agreement, and

12 (C) the price paid to the Secretary will not be

13 less than the fair market value of the material.

14 (e) GOVERNMENT TRANSFERS.—Notwithstanding sub15 section (d)(2), the Secretary may transfer or sell enriched

16 uranium—

17 (1) to a federal agency if the material is trans18 ferred for the use of the receiving agency without any

19 resale or transfer to another entity and the material

20 does not meet commercial specifications;

21 (2) to any person for national security purposes,

22 as determined by the Secretary; or

23 (3) to any state or local agency or nonprofit,

24 charitable, or educational institution for use other

25 than the generation of electricity for commercial use.
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1 (f) SAVINGS PROVISION.—Nothing in this Act shall be

2 read to modify the terms of the Russian HEU Agreement.

3 SEC. 13. LOW-LEVEL WASTE.

4 (a) RESPONSIBILITY OF DOE.—(1) The Secretary, at

5 the request of the generator, shall accept for disposal low6 level radioactive waste, including depleted uranium if it

7 were ultimately determined to be low-level radioactive

8 waste, generated by—

9 (A) the Corporation as a result of the operations

10 of the gaseous diffusion plants or as a result of the

11 treatment of such wastes at a location other than the

12 gaseous diffusion plants, or

13 (B) any person licensed by the Nuclear Regu14 latory Commission to operate a uranium enrichment

15 facility under sections 53, 63, and 193 of the Atomic

16 Energy Act of 1954 (42 U.S.C. 2073, 2093, and

17 2243).

18 (2) Except as provided in paragraph (3), the generator

19 shall reimburse the Secretary for the disposal of low-level

20 radioactive waste pursuant to paragraph (1) in an amount

21 equal to the Secretary’s costs, including a pro rata share

22 of any capital costs, but in no event more than an amount

23 equal to that which would be charged by commercial, State,

24 regional, or interstate compact entities for disposal of such

25 waste.
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1 (3) In the event depleted uranium were ultimately de2 termined to be low-level radioactive waste, the generator

3 shall reimburse the Secretary for the disposal of depleted

4 uranium pursuant to paragraph (1) in an amount equal

5 to the Secretary’s costs, including a pro rata share of any

6 capital costs.

7 (b) AGREEMENTS WITH OTHER PERSONS.—The gen8 erator may also enter into agreements for the disposal of

9 low-level radioactive waste subject to subsection (a) with

10 any person other than the Secretary that is authorized by

11 applicable laws and regulations to dispose of such wastes.

12 (c) STATE OR INTERSTATE COMPACTS.—Notwith13 standing any other provision of law, no State or interstate

14 compact shall be liable for the treatment, storage, or dis15 posal of any low-level radioactive waste (including mixed

16 waste) attributable to the operation, decontamination, and

17 decommissioning of any uranium enrichment facility.

18 SEC. 14. AVLIS.

19 (a) EXCLUSIVE RIGHT TO COMMERCIALIZE.—The

20 Corporation shall have the exclusive commercial right to de21 ploy and use any AVLIS patents, processes, and technical

22 information owned or controlled by the Government, upon

23 completion of a royalty agreement with the Secretary.

24 (b) TRANSFER OF RELATED PROPERTY TO CORPORA25 TION.—
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1 (1) IN GENERAL.—To the extent requested by the

2 Corporation and subject to the requirements of the

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

4 the President shall transfer without charge to the Cor5 poration all of the right, title, or interest in and to

6 property owned by the United States under control or

7 custody of the Secretary that is directly related to and

8 materially useful in the performance of the Corpora9 tion’s purposes regarding AVLIS and alternative

10 technologies for uranium enrichment, including—

11 (A) facilities, equipment, and materials for

12 research, development, and demonstration activi13 ties; and

14 (B) all other facilities, equipment, mate15 rials, processes, patents, technical information of

16 any kind, contracts, agreements, and leases.

17 (2) EXCEPTION.—Facilities, real estate, improve18 ments, and equipment related to the gaseous diffusion,

19 and gas centrifuge, uranium enrichment programs of

20 the Secretary shall not transfer under paragraph

21 (1)(B).

22 (3) EXPIRATION OF TRANSFER AUTHORITY.—

23 The President’s authority to transfer property under

24 this subsection shall expire upon the privatization

25 date.
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1 (c) LIABILITY FOR PATENT AND RELATED CLAIMS.—

2 With respect to any right, title, or interest provided to the

3 Corporation under subsection (a) or (b), the Corporation

4 shall have sole liability for any payments made or awards

5 under section 157b.(3) of the Atomic Energy Act of 1954

6 (42 U.S.C. 2187(b)(3)), or any settlements or judgments in7 volving claims for alleged patent infringement. Any royalty

8 agreement under subsection (a) of this section shall provide

9 for a reduction of royalty payments to the Secretary to off10 set any payments, awards, settlements, or judgments under

11 this subsection.

12 SEC. 15. GASEOUS DIFFUSION TECHNOLOGY.

13 (a) TRANSFER OF RIGHTS.—The Corporation shall

14 have the exclusive commercial rights for both uranium en15 richment and non-uranium enrichment uses of any patents,

16 patent applications, trade secrets, and other technical infor17 mation related to the gaseous diffusion technology owned

18 or controlled by the Department of Energy, or by the United

19 States but under control or custody of the Department of

20 Energy. The Corporation shall enter into an exclusive li21 censing agreement with the Department of Energy provid22 ing for—

23 (1) the payment of royalties of 3% of the gross,

24 pre-tax revenues realized by the Corporation from its

25 non-uranium enrichment commercial uses of such
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1 patents, patent applications, trade secrets, and other

2 technical information,

3 (2) the reduction of such royalties to offset any

4 payments, awards, settlements, or judgments rendered

5 against the Corporation in its deployment or licens6 ing of the exclusive commercial rights under this sec7 tion, and

8 (3) the reservation of a non-exclusive, royalty9 free right to the United States Government to use

10 such patents, patent applications, trade secrets, and

11 other technical information solely for Governmental

12 purposes.

13 (b) IMPROVEMENTS.—New patents, trade secrets, and

14 other technical information developed for commercial appli15 cations that derive from the gaseous diffusion technology

16 initially licensed by the Corporation shall be at the Cor17 poration’s expense and shall be free from royalties to the

18 Department of Energy.

19 SEC. 16. APPLICATION OF CERTAIN LAWS.

20 (a) OSHA.—(1) As of the privatization date, the pri21 vate corporation shall be subject to and comply with the

22 Occupational Safety and Health Act of 1970 (29 U.S.C.

23 651 et seq.).

24 (2) The Nuclear Regulatory Commission and the Occu25 pational Safety and Health Administration shall, within
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1 90 days after the date of enactment of this Act, enter into

2 a memorandum of agreement to govern the exercise of their

3 authority over occupational safety and health hazards at

4 the gaseous diffusion plants, including inspection, inves5 tigation, enforcement, and rulemaking relating to such haz6 ards.

7 (b) ANTITRUST LAWS.—For purposes of the antitrust

8 laws, the performance by the private corporation of a

9 ‘‘matched import’’ contract under the Suspension Agree10 ment shall be considered to have occurred prior to the pri11 vatization date, if at the time of privatization, such con12 tract had been agreed to by the parties in all material terms

13 and confirmed by the Secretary of Commerce under the Sus14 pension Agreement.

15 (c) ENERGY REORGANIZATION ACT REQUIREMENTS.—

16 (1) The private corporation and its contractor shall be sub17 ject to the provisions of section 211 of the Energy Reorga18 nization Act of 1974 (42 U.S.C. 5851) to the same extent

19 as an employer subject to such section.

20 (2) With respect to the operation of the facilities leased

21 by the private corporation, section 206 of the Energy Reor22 ganization Act of 1974 (42 U.S.C. 5846) shall apply to the

23 directors and officers of the private corporation.
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1 SEC. 17. AMENDMENTS TO THE ATOMIC ENERGY ACT.

2 (A) REPEAL.—(1) Chapters 22 through 26 of the

3 Atomic Energy Act of 1954 (42 U.S.C. 2297–2297e–7) are

4 repealed as of the privatization date.

5 (2) The table of contents of such Act is amended as

6 of the privatization date by striking the items referring to

7 sections repealed by paragraph (1).

8 (b) NRC LICENSING.—

9 (1) Section 11v. of the Atomic Energy Act of

10 1954 (42 U.S.C. 2014v.) is amended by striking ‘‘or

11 the construction and operation of a uranium enrich12 ment facility using Atomic Vapor Laser Isotope Sepa13 ration technology’’.

14 (2) Section 193 of the Atomic Energy Act of

15 1954 (42 U.S.C. 2243) is amended by adding at the

16 end the following:

17 ‘‘(f) LIMITATION.—No license or certificate of compli18 ance may be issued to the United States Enrichment Cor19 poration or its successor under this section or sections 53,

20 63, or 1701, if in the opinion of the Commission, the issu21 ance of such a license or certificate of compliance—

22 ‘‘(1) would be inimical to the common defense

23 and security of the United States; or

24 ‘‘(2) would be inimical to the maintenance of a

25 reliable and economical domestic source of enrichment

26 services because of the nature and extent of the owner-
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1 ship, control, or domination of the Corporation by a

2 foreign corporation or a foreign government or any

3 other relevant factors or circumstances.’’.

4 (3) Section 1701(c)(2) of the Atomic Energy Act

5 of 1954 (42 U.S.C. 2297f(c)(2)) is amended to read

6 as follows:

7 ‘‘(2) PERIODIC APPLICATION FOR CERTIFICATE

8 OF COMPLIANCE.—The Corporation shall apply to the

9 Nuclear Regulatory Commission for a certificate of

10 compliance under paragraph (1) periodically, as de11 termined by the Commission, but not less than every

12 5 years. The Commission shall review any such appli13 cation and any determination made under subsection

14 (b)(2) shall be based on the results of any such re15 view.’’

16 (4) Section 1702(a) of the Atomic Energy Act of

17 1954 (42 U.S.C. 2297f–1(a)) is amended—

18 (1) by striking ‘‘other than’’ and inserting

19 ‘‘including’’, and

20 (2) by striking ‘‘sections 53 and 63’’ and

21 inserting ‘‘sections 53, 63, and 193’’.

22 (c) JUDICIAL REVIEW OF NRC ACTIONS.—Section

23 189b. of the Atomic Energy Act of 1954 (42 U.S.C. 2239(b))

24 is amended to read as follows:
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1 ‘‘(b) The following Commission actions shall be subject

2 to judicial review in the manner prescribed in chapter 158

3 of title 28, United States Code and chapter 7 of title 5,

4 United States Code:

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

6 of the kind specified in subsection (a).

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

8 facility to begin operating under a combined con9 struction and operating license.

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

11 standards to govern the Department of Energy’s gase12 ous diffusion uranium enrichment plants, including

13 any such facilities leased to a corporation established

14 under the USEC Privatization Act.

15 ‘‘(4) Any final determination relating to whether

16 the gaseous diffusion plants, including any such fa17 cilities leased to a corporation established under the

18 USEC Privatization Act, are in compliance with the

19 Commission’s standards governing the gaseous diffu20 sion plants and all applicable laws.’’.

21 (d) CIVIL PENALITIES.—Section 234a. of the Atomic

22 Energy Act of 1954 (42 U.S.C. 2282(a)) is amended by—

23 (1) striking ‘‘any licensing provision of section

24 53, 57, 62, 63, 81, 82, 101, 103, 104, 107, or 109’’

25 and inserting ‘‘any licensing or certification provi-
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1 sion of section 53, 57, 62, 63, 81, 82, 101, 103, 104,

2 107, 109, or 1701’’; and

3 (2) by striking ‘‘any license issued thereunder’’

4 and inserting ‘‘any license or certification issued

5 thereunder’’.

6 (e) REFERENCES TO THE CORPORATION.—Following

7 the privitazation date, all references in the Atomic Energy

8 Act of 1954 to the United States Enrichment Corporation

9 shall be deemed to be references to the private corporation.

10 SEC. 18. AMENDMENTS TO OTHER LAWS.

11 (a) DEFINITION OF GOVERNMENT CORPORATION.—As

12 of the privatization date, section 9101(3) of title 31, United

13 States Code, is amended by striking subparagraph (N) as

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

15 (b) DEFINITION OF THE CORPORATION.—Section

16 1018(1) of the Energy Policy Act of 1992 (42 U.S.C. 2296b–

17 7(1)) is amended by inserting ‘‘or its successor’’ before the

18 period.

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