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‘‘(6) $2,520,000,000 for fiscal year 1996 and
each succeeding fiscal year.’’.
PART 1—FOOD STAMPS
SHORT TITLE
SEC. 12001. This part may be cited as ‘‘The Food
Stamp Act Amendments of 1995’’.
INCLUDE MINOR CHILDREN UNDER 18 YEARS OLD IN
THEIR PARENTS’ HOUSEHOLDS
SEC. 12011. Section 3(i) of the Food Stamp Act of
1997 (7 U.S.C. 2012(i)) is amended by striking the first
parenthetical phrase in the second sentence and inserting
in lieu thereof—‘‘(except children who have reached the
age of 18 and are themselves parents living with their chil-
dren or married and living with their spouses)’’.
USE THE COST OF THE THRIFTY FOOD PLAN FOR
ALLOTMENT ADJUSTMENTS
SEC. 12012. Section 3(o) of the Food Stamp Act of
1977 (7 U.S.C. 2012(o)) is amended by—
(1) inserting in paragraph (11) of the second
sentence immediately following ‘‘and each October 1
thereafter,’’ the words ‘‘through the last day of the
first month after the month of enactment of the Bal-
anced Budget Act of 1995 for Economic Growth and
Fairness’’; and
(2) inserting a new third sentence as follows—
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‘‘On the first day of the second month
after the month of enactment of the Balanced
Budget Act of 1995 for Economic Growth and
Fairness and each October 1 thereafter, adjust
the cost of the diet to reflect the cost of the
diet, in the preceding June, and round the re-
sult to the nearest lower dollar increment for
each household size, except that on the first day
of the second month after the month of enact-
ment of the Balanced Budget Act of 1995 for
Economic Growth and Fairness, the Secretary
may not reduce the cost of the diet in effect on
September 30, 1995.’’.
LOWER AGE FOR EXCLUDING STUDENTS’ EARNINGS
SEC. 12013. Section 5(d)(7) of the Food Stamp Act
of 1977 (7 U.S.C. 2014(d)(7)) is amended by striking ‘‘is
21 years of age or younger’’ and inserting ‘‘has not
reached the age of 18’’.
COUNT GOVERNMENTAL ENERGY ASSISTANCE AS INCOME
SEC. 12014. (a) Section 5(d) of the Food Stamp Act
of 1977 (7 U.S.C. 2014(d)) is amended by striking para-
graph (11) and renumbering paragraphs (12) through
(16) as paragraphs (11) through (15), respectively.
(b) Section 5(e) of the Food Stamp Act of 1977 (7
U.S.C. 2014(e)) is amended by striking ‘‘If a State agency
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elects’’ and all that follows through ‘‘season for which it
was provided.’’.
(c) Section 5(k) of the Food Stamp Act of 1977 (7
U.S.C. 2014(k)) is amended—
(1) in paragraph (1)(B), by striking ‘‘, not in-
cluding energy or utility-cost assistance,’’;
(2) in paragraph (2), by striking subparagraph
(C); and
(3) by adding at the end the following—
‘‘(4)(A) For purposes of subsection (d)(1),
a payment made under a Federal or State law
to provide energy assistance to a household
shall be considered money payable directly to
the household.
‘‘(B) For purposes of subsection (e), an ex-
pense paid on behalf of a household under a
Federal or State law to provide energy assist-
ance shall be considered an out-of-pocket ex-
pense incurred and paid by the household.’’.
(d) Section 2605(f) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8624(f)) is amended—
(1) by striking ‘‘(1) Notwithstanding any other
provision of law unless’’ and inserting ‘‘Notwith-
standing any other provision of law except the Food
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Stamp Act of 1977 (7 U.S.C. 2011 et seq.), and
any’’;
(2) in paragraph (1), by striking ‘‘food
stamps,’’; and (3) by striking paragraph (2).
REDUCE THE STANDARD DEDUCTION
SEC. 12015. Section 5(e) of the Food Stamp Act of
1977 (7 U.S.C. 2014(e)) is amended by striking the first
two sentences and inserting in lieu thereof the following—
‘‘The Secretary shall allow a standard deduction for each
household in the 48 contiguous States and the District
of Columbia, Alaska, Hawaii, Guam, and the Virgin Is-
lands of the United States of—
‘‘for fiscal year 1995, $134, $
, $
, $
, and $
, respectively;
‘‘(i) for fiscal year 1996, $130, $
, $
, $
, and $
, respectively;
‘‘(ii) for fiscal year 1997, $115, $
, $
, $
, and $
, respectively; and
‘‘(iii) on October 1, 1997, and each October 1
thereafter, the Secretary shall adjust the standard
deduction to the nearest lower dollar increment to
reflect changes in the Consumer Price Index for all
urban consumers published by the Bureau of Labor
Statistics, for items other than food, for the 12-
month period ending the preceding June 30.’’.
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MAKE MANDATORY USE OF STANDARD UTILITY
ALLOWANCES A STATE OPTION
SEC. 12016. Section 5(e) of the Food Stamp Act of
1977 (7 U.S.C. 2014(e)) is amended by inserting imme-
diately before ‘‘No such allowance may be used’’ the fol-
lowing new sentence—‘‘A State agency may make the use
of a standard utility allowance mandatory for all house-
holds with qualifying utility costs if (1) the State agency
has developed one or more standards that include the cost
of heating and cooling and one or more standards that
do not include the cost of heating and cooling; and (2)
the Secretary finds that the standards will not result in
increased program costs.’’.
FREEZE AMOUNT OF VEHICLE ASSET LIMITATION
SEC. 12017. The first sentence of section 5(g)(2) of
the Food Stamp Act of 1977 (7 U.S.C. 2014(g)(2)) is
amended by striking ‘‘through September 30, 1995’’ and
all that follows through ‘‘such date and on’’ and inserting
‘‘and shall be adjusted on October 1, 1996, and’’.
REQUIRE COOPERATION WITH CHILD SUPPORT
ENFORCEMENT AGENCIES AT STATE OPTION
SEC. 12018. (a) Section 6 of the Food Stamp Act
of 1977 (7 U.S.C. 2015) is amended by adding new sub-
sections (i) and (j) at the end thereof as follows—‘‘(i) At
the option of the State, no natural or adoptive parent or
other individual who is living with and exercising parental
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control over a child under the age of eighteen who has
an absent parent shall be eligible to participate in the food
stamp program unless such parent or individual cooper-
ates with the State agency administering the program
under part D of title IV of the Social Security Act (or
is determined by such State agency to have good cause
not to cooperate) in (1) establishing the paternity of such
child (if born out of wedlock), and (2) obtaining support
for such child or for herself/himself and for such child.
Notwithstanding any provision of part D of title IV of the
Social Security Act, no person required under this sub-
section to cooperate with the State agency administering
the program under part D of title IV of the Social Security
Act may be required to pay a fee or other costs for services
provided under such program.’’.
‘‘(j) At the option of the State agency, no person who
fails to make legally obligated child support payments
shall be eligible to participate in the food stamp program
unless such person is unemployed or establishes that the
child support award is inconsistent with applicable guide-
lines.’’.
FACILITATE IMPLEMENTATION OF A NATIONAL
ELECTRONIC BENEFIT TRANSFER DELIVERY SYSTEM
SEC. 12019. Section 7 of the Food Stamp Act of
1977 (7 U.S.C. 2016) is amended by—
(1) striking in subsection (g) ‘‘(1)’’;
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(2) striking paragraph (g)(2); and
(3) striking in subsection (g) ‘‘(A)’’ and ‘‘(B)’’
and inserting in lieu thereof ‘‘(1)’’ and ‘‘(2)’’, re-
spectively.
REPEAL MINIMUM BENEFIT ADJUSTMENTS
SEC. 12020. Section 8(a) of the Food Stamp Act of
1977 (7 U.S.C. 2017(a)) is amended by striking in the
proviso ‘‘, and shall be adjusted’’ and all that follows
through ‘‘$5’’.
PRORATE BENEFITS ON RECERTIFICATION
SEC. 12021. Section 8(c)(2)(B) of the Food Stamp
Act of 1977 (7 U.S.C. 2017(c)(2)(B)) is amended by
striking ‘‘of more than one month’’.
PROHIBIT
ALLOTMENT
INCREASES
FOR
PENALTIES
UNDER OTHER WELFARE AND PUBLIC ASSISTANCE
PROGRAMS
SEC. 12022. Section 8 of the Food Stamp Act of
1977 (7 U.S.C. 2017) is amended by striking subsection
(d) and inserting in lieu thereof the following—‘‘(d) If the
benefits of a household are reduced under a Federal,
State, or local law relating to a welfare or public assist-
ance program because of a penalty or for the failure to
perform an action required under the law or program, for
the duration of the reduction the household may not re-
ceive an increased allotment as the result of a decrease
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program operated pursuant to the Food Stamp
Act of 1977)’’; and
(inserting in the second sentence of paragraph
(2) immediately following ‘‘a Federal agency’’ the
following—
‘‘(or a State agency that has the respon-
sibility for the administration of the food stamp
program operated pursuant to the Food Stamp
Act of 1977)’’.
EFFECTIVE DATES
SEC. 12025. Except as otherwise provided in this
part, the provisions of this part shall become effective the
first day of the second month after the month of enact-
ment.
PART 2—CHILD NUTRITION
IMPROVED TARGETING OF DAY CARE HOME
REIMBURSEMENTS
SEC. 12031. (a) RESTRUCTURED DAY CARE HOME
REIMBURSEMENTS.—Section 17(f)(3) of the National
School Lunch Act (42 U.S.C. 1766(f)(3)) is amended by
striking ‘‘(3)(A) Institutions’’ and all that follows through
the end of subparagraph (A) and inserting the following—
‘‘(3) REIMBURSEMENT OF FAMILY OR GROUP
DAY CARE HOME SPONSORING ORGANIZATIONS.—
‘‘(A) REIMBURSEMENT FACTOR.—
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‘‘(i) IN
GENERAL.—An institution
that participates in the program under this
section as a family or group day care home
sponsoring organization shall be provided,
for payment to a home sponsored by the
organization, reimbursement factors in ac-
cordance with this subparagraph for the
cost of obtaining and preparing food and
prescribed labor costs involved in providing
meals under this section.
‘‘(ii) TIER I FAMILY OR GROUP DAY
CARE HOMES.—
‘‘(I) DEFINITION.—In this para-
graph, the term ‘tier I family or group
day care home’ means—
‘‘(aa) a family or group day
care home that is located in a ge-
ographic area, as defined by the
Secretary based on census data,
in which at least 50 percent of
the children residing in the area
are members of households whose
incomes meet the income eligi-
bility guidelines for free or re-
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duced price meals under section
9;
‘‘(bb) a family or group day
care home that is located in an
area served by a school enrolling
elementary students in which at
least 50 percent of the total num-
ber of children enrolled are cer-
tified eligible to receive free or
reduced price school meals under
this Act or the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et
seq.); or
‘‘(cc) a family or group day
care home that is operated by a
provider whose household meets
the eligibility requirements for
free or reduced price meals under
section 9 and whose eligibility is
verified by the sponsoring organi-
zation of the home under regula-
tions established by the Sec-
retary.
‘‘(II) REIMBURSEMENT.—Except
as provided in subclause (III), a tier
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I family or group day care home shall
be provided reimbursement factors
under this clause without a require-
ment for documentation of the costs
described in clause (i), except that re-
imbursement shall not be provided
under this subclause for meals or sup-
plements served to the children of a
person acting as a family or group
day care home provider unless the
children meet the eligibility require-
ments for free or reduced price meals
under section 9.
‘‘(III) FACTORS.—Except as pro-
vided in subclause (IV), the reim-
bursement factors applied to a home
referred to in subclause (II) shall be
the factors in effect on the date of en-
actment of this subclause.
‘‘(IV) ADJUSTMENTS.—The re-
imbursement factors under this sub-
paragraph shall be adjusted on Octo-
ber 1, 1996, July 1, 1997, and each
July 1 thereafter, to reflect changes in
the Consumer Price Index for food at
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home for the most recent 12-month
period for which the data are avail-
able. 
The 
reimbursement 
factors
under this subparagraph shall be
rounded to the nearest lower cent in-
crement and based on the unrounded
adjustment in effect on June 30 of
the preceding school year.
‘‘(iii) TIER II FAMILY OR GROUP DAY
CARE HOMES.—
‘‘(I) IN GENERAL.—
‘‘(aa) FACTORS.—Except as
provided in subclause (II), with
respect to meals or supplements
served under this clause by a
family or group day care home
that does not meet the criteria
set forth in clause (ii)(I), the re-
imbursement factors shall be $1
for lunches and suppers, 30 cents
for breakfasts, and 15 cents for
supplements.
‘‘(bb) ADJUSTMENTS.—The
factors shall be adjusted on July
1, 1997, and each July 1 there-
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after, to reflect changes in the
Consumer Price Index for food at
home for the most recent 12-
month period for which the data
are available. The reimbursement
factors under this item shall be
rounded down to the nearest
lower cent increment and based
on the unrounded adjustment for
the preceding 12-month period.
‘‘(cc) REIMBURSEMENT.—A
family or group day care home
shall be provided reimbursement
factors under this subclause with-
out a requirement for docu-
mentation of the costs described
in clause (i), except that reim-
bursement shall not be provided
under this subclause for meals or
supplements served to the chil-
dren of a person acting as a fam-
ily or group day care home pro-
vider unless the children meet the
eligibility requirements for free
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or reduced price meals under sec-
tion 9.
‘‘(II) OTHER FACTORS.—A fam-
ily or group day care home that does
not meet the criteria set forth in
clause (ii)(I) may elect to be provided
reimbursement factors determined in
accordance with the following require-
ments:
‘‘(aa) CHILDREN
ELIGIBLE
FOR
FREE
OR
REDUCED
PRICE
MEALS.—In the case of meals or
supplements served under this
subsection to children who meet
the eligibility requirements for
free or reduced price meals under
section 9, the family or group
day care home shall be provided
reimbursement factors set by the
Secretary in accordance with
clause (ii)(III).
‘‘(bb) 
INELIGIBLE
CHIL-
DREN.—In the case of meals or
supplements served under this
subsection to children who do not
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meet the eligibility requirements
for free or reduced priced meals
under section 9, the family or
group day care home shall be
provided reimbursement factors
in accordance with subclause (I).
‘‘(III) INFORMATION
AND
DE-
TERMINATIONS.—
‘‘(aa) IN
GENERAL.—If a
family or group day care home
elects to claim the factors de-
scribed in subclause (II), the
family or group day care home
sponsoring organization serving
the home shall collect the nec-
essary eligibility information, as
determined by the Secretary,
from any parent or other care-
taker to make the determinations
specified in subclause (II) and
shall make the determinations in
accordance with rules prescribed
by the Secretary.
‘‘(bb) CATEGORICAL ELIGI-
BILITY—In making a determina-
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tion under item (aa), a family or
group day care home sponsoring
organization may consider a child
participating in or subsidized
under, or a child with a parent
participating in or subsidized
under, a federally or State sup-
ported child care or other benefit
program with an income eligi-
bility limit that does not exceed
the income eligibility guidelines
for free or reduced price meals
under section 9 to be a child who
is eligible for free or reduced
price meals under section 9.
‘‘(cc) FACTORS
FOR
CHIL-
DREN ONLY.—A family or group
day care home may elect to re-
ceive the reimbursement factors
prescribed under clause (ii) (III)
solely for the children participat-
ing in a program referred to in
item (bb) if the home elects not
to have eligibility information col-
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lected from parents or other care-
takers.’’.
(b) GRANTS TO STATES TO PROVIDE ASSISTANCE TO
FAMILY OR GROUP DAY CARE HOMES.—Section 17(f)(3)
of the National School Lunch Act (42 U.S.C. 1766(f)(3))
is amended by adding at the end the following—
‘‘(D) GRANTS TO STATES TO
PROVIDE ASSISTANCE TO FAMILY
OR GROUP DAY CARE HOMES.—
‘‘(i) IN GENERAL.—
‘‘(I) RESERVATION.—The Secretary
shall reserve $5,000,000 of the amount
made available to carry out this section for
fiscal year 1996.
‘‘(II) PURPOSE.—The Secretary shall
use the funds made available under
subclause (I) to provide grants to States
for the purpose of providing—
‘‘(aa) 
assistance, 
including
grants, to family or group day care
home sponsoring organizations and
other appropriate organization, in se-
curing and providing training, mate-
rials, automated data processing as-
sistance, and other assistance for the
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staff of the sponsoring organizations;
and
‘‘(bb) training and other assist-
ance to family or group day care
homes in the implementation of the
amendments to subparagraph (A)
made by section 12031(a) of the Bal-
anced Budget Act of 1995 for Eco-
nomic Growth and Fairness.
‘‘(ii) ALLOCATION.—The Secretary shall
allocate from the funds reserved under clause
(i)(I)—
‘‘(I) $30,000 in base funding to each
State; and
‘‘(II) any remaining amount among
the States, based on the number of family
or group day case homes participating in
the program in a State during fiscal year
1994 as a percentage of the number of all
family or group day care homes participat-
ing in the program during fiscal year
1994.
‘‘(iii) RETENTION
OF
FUNDS.—of the
amount of funds made available to a State for
fiscal year 1996 under clause (i), the State may
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retain not to exceed 30 percent of the amount
to carry out this subparagraph.
‘‘(iv) ADDITIONAL PAYMENTS.—Any pay-
ments received under this subparagraph shall
be in addition to payments that a State receives
under subparagraph (A) (as amended by section
12031(a) of the Balanced Budget Act of 1995
for Economic Growth and Fairness).’’.
(c) PROVISION OF DATA.—Section 17(f)(3) of the
National School Lunch Act (42 U.S.C. 1766(f)(3)), as
amended by subsection (b), is further amended by adding
at the end the following—
‘‘(E) PROVISION
OF
DATA
TO
FAMILY
OR
GROUP
DAY
CARE
HOME
SPONSORING
ORGANIZA-
TIONS.—
‘‘(i) CENSUS DATA.—The Secretary shall
provide to each State agency administering a
child and adult care food program under this
section data from the most recent decennial
census survey or other appropriate census sur-
vey for which the data are available showing
which areas in the State meet the requirements
of subparagraph (A)(ii)(I)(aa). The State agen-
cy shall provide the data to family or group day
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care home sponsoring organizations located in
the State.
‘‘(ii) SCHOOL DATA.—
‘‘(I) IN
GENERAL.—A State agency
administering the school lunch program
under this Act or the school breakfast pro-
gram under the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.) shall pro-
vide data for each elementary school in the
State, or shall direct each school within the
State to provide data for the school, to ap-
proved family or group day care home
sponsoring organizations that request the
data, on the percentage of enrolled children
who are certified eligible for free or re-
duced price meals.
‘‘(II) USE OF DATA FROM PRECEDING
SCHOOL YEAR.—In determining for a fiscal
year or other annual period whether a
home qualifies as a tier I family or group
day 
care 
home 
under 
subparagraph
(A)(ii)(I), the State agency administering
the program under this section, and a fam-
ily or group day care home sponsoring or-
ganization, shall use the most current
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available data at the time of the deter-
mination.
‘‘(iii) DURATION
OF
DETERMINATION.—
For purposes of this section, a determination
that a family or group day care home is located
in an area that qualifies the home as a tier I
family or group day care home (as the term is
defined in subparagraph (A)(ii)(I)), shall be in
effect for 3 years (unless the determination is
made on the basis of census data, in which case
the determination shall remain in effect until
more recent census data are available) unless
the State agency determines that the area in
which the home is located no longer qualifies
the home as a tier I family or group day care
home.’’.
(d) CONFORMING AMENDMENTS.—Section 17(c) of
the National School Lunch Act (42 U.S.C. 1766(c)) is
amended by inserting ‘‘except as provided in subsection
(f)(3),’’ after ‘‘For purposes of this section,’’ each place
it appears in paragraphs (1), (2), and (3).
(e) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
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shall become effective on the date of enactment of
this part.
(2) IMPROVED TARGETING OF DAY CARE HOME
REIMBURSEMENTS.—The amendments made by sub-
sections (a), (c), and (d) shall become effective on
October 7, 1996.
SEC.
. REIMBURSEMENT RATE ADJUSTMENTS.
(a) IN GENERAL.—
(1) COMMODITY RATE.—Section 6(a)(1)(B) of
the National School Lunch Act (42 U.S.C.
1755(g)(1)(M) is amended by striking ‘‘1⁄4 cent’’
and inserting ‘‘lower cent increment’’.
(2) LUNCH, BREAKFAST
AND
SUPPLEMENT
RATES.—Section 11(a)(3)(b) of the National School
Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is amended
by striking ‘‘one fourth cent’’ and inserting ‘‘lower
cent increment’’.
(3) 
SUMMER
PROGRAM
RATES.—Section
13(b)(1) of the National School Lunch Act (42
U.S.C. 1761(b)(1)) is amended by striking ‘‘one-
fourth cent’’ and inserting ‘‘lower cent increment’’.
(4) 
FAMILY
DAY
CARE
RATES.—Section
17(f)(3(A) of the National School Lunch Act (42
U.S.C. 1766(f)(3)(A)) is amended in the last sen-
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tence by striking ‘‘one-fourth cent’’ and inserting
‘‘lower cent increment’’.
(5) SPECIAL MILK PROGRAM RATES.—Section
3(a)(8) of the Child Nutrition Act (42 U.S.C.
1772(a)(8)) is amended by striking ‘‘one-fourth
cent’’ and inserting ‘‘lower cent increment’’.
(6) 
SEVERE
NEED
RATES.—Section
4(b)(2)(B)(ii) of the Child Nutrition Act (42 U.S.C.
1773(b)(B)(ii)) is amended by striking ‘‘one-fourth
cent’’ and inserting ‘‘lower cent increment’’.
(b) EFFECTIVE DATES.—The amendments made by
subsection (a) shall become effective on July 1, 1996.
SEC.
. ELIMINATION OF START-UP AND EXPANSION
GRANTS.
(a) Section 4 of the Child Nutrition Act (42 U.S.C.
1773) is amended by striking subsection (g).
(b) The amendment made by this subsection (a) shall
become effective on October 1, 1996.
SEC.
. AUTHORIZATION OF APPROPRIATIONS.
Section 19(i) of the Child Nutrition Act (42 U.S.C.
1788(i)) is amended—
(a) in the first sentence of paragraph (2)(A), by
striking ‘‘and each succeeding fiscal year’’;
(b) by redesignating paragraphs (3) and (4) as
paragraphs (4) and (5), respectively; and
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(c) by inserting after paragraph (2) the follow-
ing: ‘‘(3) FISCAL YEARS 1997 THROUGH 2002—
‘‘(A) IN GENERAL.—There are authorized
to be appropriated to carry out this section
$10,000,00 for each of the fiscal years 1997
through 2002.
‘‘(B) GRANTS.—
‘‘(i)’’ IN GENERAL.—Grants to each
State from the amounts made available
under subparagraph (A) shall be based on
a rate of 50 cents for each child enrolled
in schools or institutions within the State,
except that no State shall * * * an
amount less than $75,000 per fiscal year.
‘‘(ii) INSUFFICIENT
FUNDS.—If an
amount made available for any fiscal year
is insufficient to pay the amount to which
each State is entitled under clause (i), the
amount of each grant shall be ratably re-
duced.’’
SEC. 12035. DIRECT FEDERAL EXPENDITURES.
(a) COMMODITY ASSISTANCE.—
(1) Section 6(g) of the National School Lunch
Act (42 U.S.C. 1755(g)) is amended by striking ‘‘12
percent’’ and inserting ‘‘8 percent’’.
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TITLE X—FOOD STAMPS AND COMMODITY
DISTRIBUTION
SEC. 1001. SHORT TITLE.
This title may be cited as the ‘‘Food Stamp Reform
and Commodity Distribution Act of 1995’’.
Subtitle A—Food Stamp Program
SEC. 1011. DEFINITION OF CERTIFICATION PERIOD.
Section 3(c) of the Food Stamp Act of 1977 (7
U.S.C. 2012(c)) is amended by striking ‘‘Except as pro-
vided’’ and all that follows and inserting the following:
‘‘The certification period shall not exceed 12 months, ex-
cept that the certification period may be up to 24 months
if all adult household members are elderly or disabled. A
State agency shall have at least 1 contact with each cer-
tified household every 12 months’’.
SEC. 1012. DEFINITION OF COUPON.
Section 3(d) of the Food Stamp Act of 1977 (7
U.S.C. 2012(d)) is amended by striking ‘‘or type of certifi-
cate’’ and inserting ‘‘type of certificate, authorization
card, cash or check issued in lieu of a coupon, or an access
device, including an electronic benefit transfer card or per-
sonal identification number,’’.
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SEC. 1016. DEFINITION OF HOMELESS INDIVIDUAL.
Section 3(s)(2)(C) of the Food Stamp Act of 1977
(7 U.S.C. 2012(s)(2)(C)) is amended by inserting ‘‘for not
more than 90 days’’ after ‘‘temporary accommodation’’.
SEC. 1017. STATE OPTION FOR ELIGIBILITY STANDARDS.
Section 5(b) of the Food Stamp Act of 1977 (7
U.S.C. 2014(d)) is amended by striking ‘‘(b) The Sec-
retary’’ and inserting the following:
‘‘(b) ELIGIBILITY STANDARDS.—Except as otherwise
provided in this Act, the Secretary’’.
SEC. 1023. DOUBLE PENALTIES FOR VIOLATING FOOD
STAMP PROGRAM REQUIREMENTS.
Section 6(b)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2015(b)(1)) is amended—
(1) in clause (i), by striking ‘‘six months’’ and
inserting ‘‘1 year’’; and
(2) in clause (ii), by striking ‘‘1 year’’ and in-
serting ‘‘2 years’’.
SEC. 1024. DISQUALIFICATION OF CONVICTED INDIVID-
UALS.
Section 6(b)(1)(iii) of the Food Stamp Act of 1977
(7 U.S.C. 2015(b)(1)(iii) is amended—
(1) in subclause (II), by striking ‘‘or’’ at the
end;
(2) in subclause (III), by striking the period at
the end and inserting ‘‘; or’’; and
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(3) by inserting after subclause (III) the follow-
ing:
‘‘(IV) a conviction of an offense under sub-
section (b) or (c) of section 15 involving an
item covered by subsection (b) or (c) of section
15 having a value of $500 or more.’’.
SEC. 1027. EMPLOYMENT AND TRAINING.
(a) IN GENERAL.—Section 6(d)(4) of the Food
Stamp Act of 1977 (7 U.S.C. 2015(d)(4)) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘Not later than April 1,
1987, each’’ and inserting ‘‘Each’’;
(B) by inserting ‘‘work,’’ after ‘‘skills,
training,’’; and
(C) by adding at the end the following:
‘‘Each component of an employment and train-
ing program carried out under this paragraph
shall be delivered through a statewide workforce
development system, unless the component is
not available locally through the statewide
workforce development system.’’;
(2) in subparagraph (B)—
(A) in the matter preceding clause (i), by
striking the colon at the end and inserting the
following: ‘‘, except that the State agency shall
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retain the option to apply employment require-
ments prescribed under this subparagraph to a
program applicant at the time of application:’’;
(B) in clause (i), by striking ‘‘with terms
and conditions’’ and all that follows through
‘‘time of application’’; and
(C) in clause (iv)—
(i) by striking subclauses (I) and (II);
and
(ii) by redesignating subclauses (III)
and (IV) as subclauses (I) and (II), respec-
tively;
(3) in subparagraph (D)—
(A) in clause (i), by striking ‘‘to which the
application’’ and all that follows through ‘‘30
days or less’’;
(B) in clause (ii), by striking ‘‘but with re-
spect’’ and all that follows through ‘‘child
care’’; and
(C) in clause (iii), by striking ‘‘, on the
basis of’’ and all that follows through ‘‘clause
(ii)’’ and inserting ‘‘the exemption continues to
be valid’’;
(4) in subparagraph (E), by striking the third
sentence;
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(5) in subparagraph (G)—
(A) by striking ‘‘(G)(i) The State’’ and in-
serting ‘‘(G) The State’’; and
(B) by striking clause (ii);
(6) in subparagraph (H), by striking ‘‘(H)(i)
The Secretary’’ and all that follows through ‘‘(ii)
Federal funds’’ and inserting ‘‘(H) Federal funds’’;
(7) in subparagraph (I)(i)(II), by striking ‘‘, or
was in operation,’’ and all that follows through ‘‘So-
cial Security Act’’ and inserting the following: ‘‘),
except that no such payment or reimbursement shall
exceed the applicable local market rate’’;
(8)(A) by striking subparagraphs (K) and (L)
and inserting the following:
‘‘(K) LIMITATION ON FUNDING.—Notwith-
standing any other provision of this paragraph,
the amount of funds a State agency uses to
carry out this paragraph (including under sub-
paragraph (I)) for participants who are receiv-
ing benefits under a State program funded
under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) shall not exceed the
amount of funds the State agency used in fiscal
year 1995 to carry out this paragraph for par-
ticipants who were receiving benefits in fiscal
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year 1995 under a State program funded under
part A of title IV of the Act (42 U.S.C. 601 et
seq.).’’; and
(B) by redesignating subparagraphs (M)
and (N) as subparagraphs (L) and (M), respec-
tively; and
(9) in subparagraph (L), as redesignated by
paragraph (8)(B)—
(A) by striking ‘‘(L)(i) The Secretary’’ and
inserting ‘‘(L) The Secretary’’; and
(B) by striking clause (ii).
(b) FUNDING.—Section 16(h) of the Act (7 U.S.C.
2025(h)) is amended by striking ‘‘(h)(1)(A) The Sec-
retary’’ and all that follows through the end of paragraph
(1) and inserting the following:
‘‘(h) FUNDING
OF EMPLOYMENT
AND TRAINING
PROGRAMS.—
‘‘(1) IN GENERAL.—
‘‘(A) AMOUNTS.—To carry out employ-
ment and training programs, the Secretary
shall reserve for allocation to State agencies
from funds made available for each fiscal year
under section 18(a)(1) the amount of—
‘‘(i) for fiscal year 1996, $77,000,000;
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HR 2903 IH
‘‘(ii) 
for 
fiscal 
year 
1997,
$79,000,000;
‘‘(iii) 
for 
fiscal 
year 
1998,
$81,000,000;
‘‘(iv) 
for 
fiscal 
year 
1999,
$84,000,000;
‘‘(v) 
for 
fiscal 
year 
2000,
$86,000,000;
‘‘(vi) 
for 
fiscal 
year 
2001,
$88,000,000; and
‘‘(vii) 
for 
fiscal 
year 
2002,
$90,000,000.
‘‘(B) ALLOCATION.—The Secretary shall
allocate the amounts reserved under subpara-
graph (A) among the State agencies using a
reasonable formula (as determined by the Sec-
retary) that gives consideration to the popu-
lation in each State affected by section 6(o).
‘‘(C) REALLOCATION.—
‘‘(i) NOTIFICATION.—A State agency
shall promptly notify the Secretary if the
State agency determines that the State
agency will not expend all of the funds al-
located to the State agency under subpara-
graph (B).
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‘‘(ii) REALLOCATION.—On notification
under clause (i), the Secretary shall reallo-
cate the funds that the State agency will
not expend as the Secretary considers ap-
propriate and equitable.
‘‘(D) MINIMUM
ALLOCATION.—Notwith-
standing subparagraphs (A) through (C), the
Secretary shall ensure that each State agency
operating an employment and training program
shall receive not less than $50,000 in each fis-
cal year.’’.
(c) 
ADDITIONAL
MATCHING
FUNDS.—Section
16(h)(2) of the Act (7 U.S.C. 2025(h)(2)) is amended by
inserting before the period at the end the following: ‘‘, in-
cluding the costs for case management and casework to
facilitate the transition from economic dependency to self-
sufficiency through work’’.
(d) REPORTS.—Section 16(h) of the Act (7 U.S.C.
2025(h)) is amended—
(1) in paragraph (5)—
(A) by striking ‘‘(5)(A) The Secretary’’
and inserting ‘‘(5) The Secretary’’; and
(B) by striking subparagraph (B); and
(2) by striking paragraph (6).
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SEC. 1030. DISQUALIFICATION OF FLEEING FELONS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by section 1029, is further amended
by inserting after subsection (j) the following:
‘‘(k) DISQUALIFICATION OF FLEEING FELONS.—No
member of a household who is otherwise eligible to partici-
pate in the food stamp program shall be eligible to partici-
pate in the program as a member of that or any other
household during any period during which the individual
is—
(1) fleeing to avoid prosecution, or custody or
confinement after conviction, under the law of the
place from which the individual is fleeing, for a
crime, or attempt to commit a crime, that is a felony
under the law of the place from which the individual
is fleeing or that, in the case of New Jersey, is a
high misdemeanor under the law of New Jersey; or
‘‘(2) violating a condition of probation or parole
imposed under a Federal or State law.’’.
SEC. 1034. ENCOURAGE ELECTRONIC BENEFIT TRANSFER
SYSTEMS.
(a) IN GENERAL.—Section 7(i) of the Food Stamp
Act of 1977 (7 U.S.C. 2016(i)) is amended—
(1) by striking paragraph (1) and inserting the
following:
‘‘(1) ELECTRONIC BENEFIT TRANSFERS.—
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‘‘(A) 
IMPLEMENTATION.—Each 
State
agency shall implement an electronic benefit
transfer system in which household benefits de-
termined under section 8(a) or 24 are issued
from and stored in a central databank before
October 1, 2002, unless the Secretary provides
a waiver for a State agency that faces unusual
barriers to implementing an electronic benefit
transfer system.
‘‘(C) STATE
FLEXIBILITY.—Subject to
paragraph (2), a State agency may procure and
implement an electronic benefit transfer system
under the terms, conditions, and design that
the State agency considers appropriate.
‘‘(D) OPERATION.—An electronic benefit
transfer system should take into account gen-
erally accepted standard operating rules based
on—
‘‘(i) 
commercial 
electronic 
funds
transfer technology;
‘‘(ii) the need to permit interstate op-
eration and law enforcement monitoring;
and
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‘‘(iii) the need to permit monitoring
and investigations by authorized law en-
forcement agencies.’’;
‘‘(8) REPLACEMENT CARD FEE.—A State agen-
cy may collect a charge for replacement of an elec-
tronic benefit transfer card by reducing the monthly
allotment of the household receiving the replacement
card.
‘‘(9) OPTIONAL
PHOTOGRAPHIC
IDENTIFICA-
TION.—
‘‘(A) IN GENERAL.—A State agency may
require that an electronic benefit card contain
a photograph of 1 or more members of a house-
hold.
‘‘(B) OTHER
AUTHORIZED
USERS.—If a
State agency requires a photograph on an elec-
tronic benefit card under subparagraph (A), the
State agency shall establish procedures to en-
sure that any other appropriate member of the
household or any authorized representative of
the household may utilize the card.’’.
SEC. 1035. VALUE OF MINIMUM ALLOTMENT.
The proviso in section 8(a) of the Food Stamp Act
of 1977 (7 U.S.C. 2017(a)) is amended by striking ‘‘, and
shall be adjusted’’ and all that follows through ‘‘$5.’’.
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SEC. 1036. BENEFITS ON RECERTIFICATION.
Section 8(c)(2)(B) of the Food Stamp Act of 1977
(7 U.S.C. 2017(c)(2)(B)) is amended by striking ‘‘of more
than one month’’.
SEC. 1037. OPTIONAL COMBINED ALLOTMENT AND EXPE-
DITED HOUSEHOLDS.
Section 8(c) of the Food Stamp Act of 1977 (7
U.S.C. 2017(c)) is amended by striking paragraph (3) and
inserting the following:
‘‘(3) OPTIONAL
COMBINED
ALLOTMENT
FOR
EXPEDITED
HOUSEHOLDS.—A State agency may
provide to an eligible household applying after the
15th day of a month, in lieu of the initial allotment
of the household and the regular allotment of the
household for the following month, an allotment that
is equal to the total amount of the initial allotment
and the first regular allotment. The allotment shall
be provided in accordance with section 11(e)(3) in
the case of a household that is not entitled to expe-
dited service and in accordance with paragraphs (3)
and (9) of section 11(e) in the case of a household
that is entitled to expedited service.’’.
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SEC. 1038. FAILURE TO COMPLY WITH OTHER MEANS-TEST-
ED PUBLIC ASSISTANCE PROGRAMS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C.
2017) is amended by striking subsection (d) and inserting
the following:
‘‘(d) REDUCTION
OF
PUBLIC
ASSISTANCE
BENE-
FITS.—
‘‘(1) IN GENERAL.—If the benefits of a house-
hold are reduced under a Federal, State, or local law
relating to a means-tested public assistance program
for the failure of a member of the household to per-
form an action required under the law or program,
for the duration of the reduction—
‘‘(A) the household may not receive an in-
creased allotment as the result of a decrease in
the income of the household to the extent that
the decrease is the result of the reduction; and
‘‘(B) the State agency may reduce the al-
lotment of the household by not more than 25
percent.
SEC. 1037. OPTIONAL COMBINED ALLOTMENT FOR EXPE-
DITED HOUSEHOLDS.
Section 8(c) of the Food Stamp Act of 1977 (7
U.S.C. 2017(c)) is amended by striking paragraph (3) and
inserting the following:
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‘‘(3) OPTIONAL
COMBINED
ALLOTMENT
FOR
EXPEDITED
HOUSEHOLDS.—A State agency may
provide to an eligible household applying after the
15th day of a month, in lieu of the initial allotment
of the household and the regular allotment of the
household for the following month, an allotment that
is equal to the total amount of the initial allotment
and the first regular allotment. The allotment shall
be provided in accordance with section 11(e)(3) in
the case of a household that is not entitled to expe-
dited service and in accordance with paragraphs (3)
and (9) of section 11(e) in the case of a household
that is entitled to expedited service.’’.
SEC. 1039. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN
CENTERS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C.
2017) is amended by adding at the end the following:
‘‘(f) ALLOTMENTS FOR HOUSEHOLDS RESIDING
IN CENTERS.—
‘‘(1) IN GENERAL.—In the case of an individual
who resides in a center for the purpose of a drug or
alcoholic treatment program described in the last
sentence of section 3(i), a State agency may provide
an allotment for the individual to—
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‘‘(A) the center as an authorized represent-
ative of the individual for a period that is less
than 1 month; and
‘‘(B) the individual, if the individual leaves
the center.
‘‘(2) DIRECT PAYMENT.—A State agency may
require an individual referred to in paragraph (1) to
designate the center in which the individual resides
as the authorized representative of the individual for
the purpose of receiving an allotment.’’.
SEC. 1046. EXCHANGE OF LAW ENFORCEMENT INFORMA-
TION.
Section 11(e)(8) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(8)) is amended—
(1) by striking ‘‘that (A) such’’ and inserting
the following: ‘‘that—
‘‘(A) the’’;
(2) by striking ‘‘law, (B) notwithstanding’’ and
inserting the following: ‘‘law;
‘‘(B) notwithstanding’’;
(3) by striking ‘‘Act, and (C) such’’ and insert-
ing the following: ‘‘Act;
‘‘(C) the’’; and
(4) by adding at the end the following:
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‘‘(D) notwithstanding any other provision
of law, the address, social security number, and,
if available, photograph of any member of a
household shall be made available, on request,
to any Federal, State, or local law enforcement
officer if the officer furnishes the State agency
with the name of the member and notifies the
agency that—
‘‘(i) the member—
‘‘(I) is fleeing to avoid prosecu-
tion, or custody or confinement after
conviction, for a crime (or attempt to
commit a crime) that, under the law
of the place the member is fleeing, is
a felony (or, in the case of New Jer-
sey, a high misdemeanor), or is violat-
ing a condition of probation or parole
imposed under Federal or State law;
or
‘‘(II) has information that is nec-
essary for the officer to conduct an of-
ficial duty related to subclause (I);
‘‘(ii) locating or apprehending the
member is an official duty; and
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‘‘(iii) the request is being made in the
proper exercise of an official duty; and
‘‘(E) the safeguards shall not prevent com-
pliance with paragraph (16);’’.
SEC. 1047. EXPEDITED COUPON SERVICE.
Section 11(e)(9) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(9)) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘five days’’ and inserting
‘‘7 days’’; and
(B) by inserting ‘‘and’’ at the end;
(2) by striking subparagraphs (B) and (C);
(3) by redesignating subparagraph (D) as sub-
paragraph (B); and
(4) in subparagraph (B), as redesignated by
paragraph (3), by striking ‘‘, (B), or (C)’’.
SEC. 1048. WITHDRAWING FAIR HEARING REQUESTS.
Section 11(e)(10) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(10)) is amended by inserting before the
semicolon at the end a period and the following: ‘‘At the
option of a State, at any time prior to a fair hearing deter-
mination under this paragraph, a household may with-
draw, orally or in writing, a request by the household for
the fair hearing. If the withdrawal request is an oral re-
quest, the State agency shall provide a written notice to
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the household confirming the withdrawal request and pro-
viding the household with an opportunity to request a
hearing’’.
SEC. 1049. INCOME, ELIGIBILITY, AND IMMIGRATION STA-
TUS VERIFICATION SYSTEMS.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C.
2020) is amended—
(1) in subsection (e)(18), as redesignated by
section 1044(1)(D)—
(A) by striking ‘‘that information is’’ and
inserting ‘‘at the option of the State agency,
that information may be’’; and
(B) by striking ‘‘shall be requested’’ and
inserting ‘‘may be requested’’; and
(2) by adding at the end the following:
‘‘(p) STATE VERIFICATION OPTION—Notwithstand-
ing any other provision of law, in carrying out the food
stamp program, a State agency shall not be required to
use an income and eligibility or an immigration status ver-
ification system established under section 1137 of the So-
cial Security Act (42 U.S.C. 1320b–7).’’.
SEC. 1059. AUTHORIZATION OF PILOT PROJECTS.
Section 17(b)(1)(B) of the Food Stamp Act of 1977
(7 U.S.C. 2026(b)(1)(B)), as amended by section 1058,
is further amended—
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(1) in clause (iv), by striking ‘‘coupons. Any
pilot’’ and inserting the following: ‘‘coupons.
‘‘(v) 
CASH
PAYMENT
PILOT
PROJECTS.—Any pilot’’; and
(2) in clause (v), as so amended, by striking
‘‘1995’’ and inserting ‘‘2002’’.
SEC. 1060. RESPONSE TO WAIVERS.
Section 17(b)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2026(b)(1)), as amended by section 1058, is fur-
ther amended by adding at the end the following:
‘‘(D) RESPONSE TO WAIVERS.—
‘‘(i) RESPONSE.—Not later than 60
days after the date of receiving a request
for a waiver under subparagraph (A), the
Secretary shall provide a response that—
‘‘(I) approves the waiver request;
‘‘(II) denies the waiver request
and explains any modification needed
for approval of the waiver request;
‘‘(III) denies the waiver request
and explains the grounds for the de-
nial; or
‘‘(IV) requests clarification of the
waiver request.
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‘‘(ii) FAILURE TO RESPOND.—If the
Secretary does not provide a response in
accordance with clause (i), the waiver shall
be considered approved, unless the ap-
proval is specifically prohibited by this Act.
‘‘(iii) NOTICE OF DENIAL.—On denial
of a waiver request under clause (i)(III),
the Secretary shall provide a copy of the
waiver request and a description of the
reasons for the denial to the Committee on
Agriculture of the House of Representa-
tives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate.’’.
Subtitle B—Commodity Distribution Programs
SEC. 1071. COMMODITY DISTRIBUTION PROGRAM; COM-
MODITY SUPPLEMENTAL FOOD PROGRAM.
(a) REAUTHORIZATION.—The first sentence of sec-
tion 4(a) of the Agriculture and Consumer Protection Act
of 1973 (Public Law 93–86; 7 U.S.C. 612c note) is
amended by striking ‘‘1995’’ and inserting ‘‘2002’’.
(b) FUNDING.—Section 5 of the Act (Public Law 93–
86; 7 U.S.C. 612c note) is amended—
(1) in subsection (a)(2), by striking ‘‘1995’’ and
inserting ‘‘2002’’; and
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(2) in subsection (d)(2), by striking ‘‘1995’’
and inserting ‘‘2002’’.
SEC. 1073. FOOD BANK DEMONSTRATION PROJECT.
Section 3 of the Charitable Assistance and Food
Bank Act of 1987 (Public Law 100–232; 7 U.S.C. 612c
note) is repealed.
SEC. 1074. HUNGER PREVENTION PROGRAMS.
The Hunger Prevention Act of 1988 (Public Law
100–435; 7 U.S.C 612c note) is amended—
(1) by striking section 110;
(2) by striking subtitle C of title II; and
(3) by striking section 502.
SEC. 1075. REPORT ON ENTITLEMENT COMMODITY PROC-
ESSING.
Section 1773 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (Public Law 101–624; 7 U.S.C.
612c note) is amended by striking subsection (f).
TITLE XI—MISCELLANEOUS
SEC. 1101. EXPENDITURE OF FEDERAL FUNDS IN ACCORD-
ANCE WITH LAWS AND PROCEDURES APPLI-
CABLE TO EXPENDITURE OF STATE FUNDS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, any funds received by a State under the provi-
sions of law specified in subsection (b) shall be expended
only in accordance with the laws and procedures applicable
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to expenditures of the State’s own revenues, including ap-
propriation by the State legislature, consistent with the
terms and conditions required under such provisions of
law.
TITLE VI—FEDERAL RETIREMENT AND RELATED
PROVISIONS
Subtitle A—Civil Service and Postal Service
Provisions
SEC. 6001. EXTENSION OF DELAY IN COST-OF-LIVING AD-
JUSTMENTS IN FEDERAL EMPLOYEE RETIRE-
MENT BENEFITS THROUGH FISCAL YEAR
2002.
Section 11001(a) of the Omnibus Budget Reconcili-
ation Act of 1993 (Public Law 103–66; 107 Stat. 408)
is amended in the matter preceding paragraph (1) by
striking out ‘‘or 1996,’’ and inserting in lieu thereof
‘‘1996, 1997, 1998, 1999, 2000, 2001, or 2002,’’.
SEC. 6002. INCREASED CONTRIBUTIONS TO FEDERAL CI-
VILIAN RETIREMENT SYSTEMS.
(a) CIVIL SERVICE RETIREMENT SYSTEM.—
(1) DEDUCTIONS.—The first sentence of section
8334(a)(1) of title 5, United States Code, is amend-
ed to read as follows: ‘‘The employing agency shall
deduct and withhold from the basic pay of an em-
ployee, Member, Congressional employee, law en-
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forcement officer, firefighter, bankruptcy judge,
judge of the United States Court of Appeals for the
Armed Forces, United States magistrate, or Claims
Court judge, as the case may be, the percentage of
basic pay applicable under subsection (c).’’.
(2) AGENCY CONTRIBUTIONS.—
(A) INCREASE IN AGENCY CONTRIBUTION
DURING
CALENDAR
YEARS
1996
THROUGH
2002.—Section 8334(a)(1) of title 5, United
States Code (as amended by this section) is fur-
ther amended—
(i) by inserting ‘‘(A)’’ after ‘‘(1)’’; and
(ii) by adding at the end thereof the
following new subparagraph;
‘‘(B)(i) 
Notwithstanding 
subparagraph
(A), the agency contribution under the second
sentence of such subparagraph, during the pe-
riod beginning on January 1, 1996, through
December 31, 2002—
‘‘(I) for each employing agency (other
than the United States Postal Service or
the Washington Metropolitan Airport Au-
thority) shall be 8.51 percent of the basic
pay of an employee, Congressional em-
ployee, and a Member of Congress, 9.01
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percent of the basic pay of a law enforce-
ment officer, a member of the Capitol Po-
lice, and a firefighter, and 8.51 percent of
the basic pay of a Claims Court judge, a
United States magistrate, a judge of the
United States Court of Appeals for the
Armed Services, and a bankruptcy judge,
as the case may be; and
‘‘(II) for the United States Postal
Service and the Washington Metropolitan
Airport Authority shall be 7 percent of the
basic pay of an employee and 7.5 percent
of the basic pay of a law enforcement offi-
cer or firefighter.’’.
(B) NO REDUCTION IN AGENCY CONTRIBU-
TIONS BY THE POSTAL SERVICE.—Agency con-
tributions by the United States Postal Service
under section 8348(h) of title 5, United States
Code—
(i) shall not be reduced as a result of
the amendments made under paragraph
(3) of this subsection; and
(ii) shall be computed as through such
amendments had not been enacted.
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(3) INDIVIDUAL DEDUCTIONS, WITHHOLDINGS,
AND DEPOSITS.—The table under section 8334(c) of
title 5, United States Code, is amended—
(A) in the matter relating to an employee
by striking out
‘‘7 ........
After December 31, 1969.’’
and inserting in lieu thereof the following:
‘‘7 ........
January 1, 1970, to December 31, 1995.
7.25 .....
January 1, 1996, to December 31, 1996.
7.4 .......
January 1, 1997, to December 31, 1997.
7.5 .......
January 1, 1998, to December 31, 2002.
7 ..........
After December 31, 2002.’’;
(B) in the matter relating to a Member or
employee for Congressional employee service by
striking out
‘‘71⁄2 .....
After December 31, 1969.’’
and inserting in lieu thereof the following:
‘‘7.5 .....
January 1, 1970, to December 31, 1995.
7.25 .....
January 1, 1996, to December 31, 1996.
7.4 .......
January 1, 1997, to December 31, 1997.
7.5 .......
January 1, 1998, to December 31, 2002.
7 ..........
After December 31, 2002.’’;
(C) in the matter relating to a Member for
Member service by striking out
‘‘8 ........
After December 31, 1969.’’
and inserting in lieu thereof the following:
‘‘8 ........
January 1, 1970, to December 31, 1995.
7.25 .....
January 1, 1996, to December 31, 1996.
7.4 .......
January 1, 1997, to December 31, 1997.
7.5 .......
January 1, 1998, to December 31, 2002.
7 ..........
After December 31, 2002.’’;
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(D) in the matter relating to a law enforce-
ment officer for law enforcement service and
firefighter for firefighter service by striking out
‘‘71⁄2 .....
After December 31, 1974.’’
and inserting in lieu thereof the following:
‘‘7.5 .....
January 1, 1975, to December 31, 1995.
7.75 .....
January 1, 1996, to December 31, 1996.
7.9 .......
January 1, 1997, to December 31, 1997.
8 ..........
January 1, 1998, to December 31, 2002.
7.5 .......
After December 31, 2002.’’;
(E) in the matter relating to a bankruptcy
judge by striking out
‘‘8 ........
After December 31, 1983.’’
and inserting in lieu thereof the following:
‘‘8 ........
January 1, 1984, to December 31, 1995.
7.5 .......
January 1, 1996, to December 31, 1996.
7.4 .......
January 1, 1997, to December 31, 1997.
7.5 .......
January 1, 1998, to December 31, 2002.
7 ..........
After December 31, 2002.’’;
(F) in the matter relating to a judge of the
United States Court of Appeals for the Armed
Forces for service as a judge of that court by
striking out
‘‘8 ........
On and after the date of the enactment of
the Department of Defense Authoriza-
tion Act, 1984.’’
and inserting in lieu thereof the following:
‘‘8 ........
The date of the enactment of the Depart-
ment of Defense Authorization Act,
1984, to December 31, 1995.
7.25 .....
January 1, 1996, to December 31, 1996.
7.4 .......
January 1, 1997, to December 31, 1997.
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7.5 .......
January 1, 1998, to December 31, 2002.
7 ..........
After December 31, 2002.’’;
(G) in the matter relating to a United
States magistrate by striking out
‘‘8 ........
After September 30, 1987.’’
and inserting in lieu thereof the following:
‘‘8 ........
October 1, 1987, to December 31, 1995.
7.25 .....
January 1, 1996, to December 31, 1996.
7.4 .......
January 1, 1997, to December 31, 1997.
7.5 .......
January 1, 1998, to December 31, 2002.
7 ..........
After December 31, 2002.’’;
(H) in the matter relating to a Claims
Court judge by striking out
‘‘8 ........
After September 30, 1988.’’
and inserting in lieu thereof the following:
‘‘8 ........
October 1, 1988, to December 31, 1995.
7.25 .....
January 1, 1996, to December 31, 1996.
7.4 .......
January 1, 1997, to December 31, 1997.
7.5 .......
January 1, 1998, to December 31, 2002.
7 ..........
After December 31, 2002.’’;
and
(I) by inserting after the matter relating to
a Claims Court judge the following:
‘‘Member of the Capitol Police ....................
2.5 .......
August 1, 1920, to June 30, 1926.
3.5 .......
July 1, 1926, to June 30, 1942.
5 ..........
July 1, 1942, to June 30, 1948.
6 ..........
July 1, 1948, to October 31, 1956.
6.5 .......
November 1, 1956, to December 31, 1969.
7.5 .......
January 1, 1970, to December 31, 1995.
7.75 .....
January 1, 1996, to December 31, 1996.
7.9 .......
January 1, 1997, to December 31, 1997.
8 ..........
January 1, 1998, to December 31, 2002.
7.5 .......
After December 31, 2002.’’.
(4) OTHER SERVICE.—
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(A) MILITARY SERVICE.—Section 8334(j)
of title 5, United States Code, is amended—
(i) in paragraph (1)(A) by inserting
‘‘and subject to paragraph (5),’’ after ‘‘Ex-
cept as provided in subparagraph (B),’’;
and
(ii) by adding at the end thereof the
following new paragraph:
‘‘(5) Effective with respect to any period of
military service after December 31, 1995, the per-
centage of basic pay under section 204 of title 37
payable under paragraph (1) shall be equal to the
same percentage as would be applicable under sec-
tion 8334(c) for that same period for service as an
employee, subject to paragraph (1)(B).’’.
(B) 
VOLUNTEER
SERVICE.—Section
8334(l) of title 5, United States Code, is
amended—
(i) in paragraph (1) by adding at the
end thereof the following: ‘‘This paragraph
shall be subject to paragraph (4).’’; and
(ii) by adding at the end thereof the
following new paragraph:
‘‘(4) Effective with respect to any period of
service after December 31, 1995, the percentage of
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the readjustment allowance or stipend (as the case
may be) payable under paragraph (1) shall be equal
to the same percentage as would be applicable under
section 8334(c) for that same period for service as
an employee.’’.
(b) FEDERAL EMPLOYEES RETIREMENT SYSTEM.—
(1) 
INDIVIDUAL
DEDUCTIONS
AND
WITHHOLDINGS.—
(A) IN GENERAL.—Section 8422(a) of title
5, United States Code, is amended by striking
out paragraph (2) and inserting in lieu thereof
the following:
‘‘(2) The percentage to be deducted and with-
held from basic pay for any pay period shall be
equal to—
‘‘(A) the applicable percentage under para-
graph (3), minus
‘‘(B) the percentage then in effect under
section 3101(a) of the Internal Revenue Code
of 1986 (relating to rate of tax for old-age, sur-
vivors, and disability insurance).
‘‘(3) The applicable percentage under this para-
graph, for civilian service shall be as follows:
Employee .....................................................
7 ..........
Before January 1, 1996.
7.25 .....
January 1, 1996, to December 31, 1996.
7.4 .......
January 1, 1997, to December 31, 1997.
7.5 .......
January 1, 1998, to December 31, 2002.
7 ..........
After December 31, 2002.
Congressional employee ...............................
7.5 .......
Before January 1, 1996.
7.25 .....
January 1, 1996, to December 31, 1996.
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7.4 .......
January 1, 1997, to December 31, 1997.
7.5 .......
January 1, 1998, to December 31, 2002.
7 ..........
After December 31, 2002.
Member ........................................................
7.5 .......
Before January 1, 1996.
7.25 .....
January 1, 1996, to December 31, 1996.
7.4 .......
January 1, 1997, to December 31, 1997.
7.5 .......
January 1, 1998, to December 31, 2002.
7 ..........
After December 31, 2002.
Law enforcement officer, firefighter, mem-
ber of the Capitol Police, or air traffic
controller.
7.5 .......
Before January 1, 1996.
7.75 .....
January 1, 1996, to December 31, 1996.
7.9 .......
January 1, 1997, to December 31, 1997.
8 ..........
January 1, 1998, to December 31, 2002.
7.5 .......
After December 31, 2002.
(B) MILITARY SERVICE.—Section 8422(e)
of title 5, United States Code, is amended—
(i) in paragraph (1)(A) by inserting
‘‘and subject to paragraph (6),’’ after ‘‘Ex-
cept as provided in subparagraph (B),’’;
and
(ii) by adding at the end thereof the
following:
‘‘(6) The percentage of basic pay under section
204 of title 37 payable under paragraph (1), with
respect to any period of military service performed
during—
‘‘(A) January 1, 1996, through December
31, 1996, shall be 3.25 percent;
‘‘(B) January 1, 1997, through December
31, 1997, shall be 3.4 percent; and
‘‘(C) January 1, 1998, through December
31, 2002, shall be 3.5 percent.’’.
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(C) 
VOLUNTEER
SERVICE.—Section
8422(f) of title 5, United States Code, is
amended—
(i) in paragraph (1) by adding at the
end thereof the following: ‘‘This paragraph
shall be subject to paragraph (4).’’; and
(ii) by adding at the end the follow-
ing:
‘‘(4) The percentage of the readjustment allow-
ance or stipend (as the case may be) payable under
paragraph (1), with respect to any period of volun-
teer service performed during—
‘‘(A) January 1, 1996, through December
31, 1996, shall be 3.25 percent;
‘‘(B) January 1, 1997, through December
31, 1997, shall 3.4 percent; and
‘‘(C) January 1, 1998, through December
31, 2002, shall be 3.5 percent.’’.
(2) NO
REDUCTION
IN
AGENCY
CONTRIBU-
TIONS.—Agency contributions under section 8423
(a) and (b) of title 5, United States Code, shall not
be reduced as a result of the amendments made
under paragraph (1) of this subsection.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the first day of the first
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applicable pay period beginning on or after January 1,
1996.
SEC. 6003. FEDERAL RETIREMENT PROVISIONS RELATING
TO MEMBERS OF CONGRESS AND CONGRES-
SIONAL EMPLOYEES.
(a) RELATING TO THE YEARS OF SERVICE AS A
MEMBER OF CONGRESS AND CONGRESSIONAL EMPLOY-
EES FOR PURPOSES OF COMPUTING AN ANNUITY.—
(1) CSRS.—Section 8339 of title 5, United
States Code, is amended—
(A) in subsection (a) inserting ‘‘or Mem-
ber’’ after ‘‘employee’’; and
(B) by striking out subsections (b) and (c).
(2) FERS.—Section 8415 of title 5, United
States Code, is amended—
(A) by striking out subsections (b) and (c);
(B) in subsections (a) and (g) by inserting
‘‘or Member’’ after ‘‘employee’’ each place it
appears; and
(C) in subsection (g)(2) by striking out
‘‘Congressional employee’’.
(b) ACCRUAL RATE FOR MEMBER AND CONGRES-
SIONAL
EMPLOYEE
SERVICE
PERFORMED
BUT
NOT
VESTED BEFORE EFFECTIVE DATE.—
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(1) APPLICATION.—This subsection shall apply
to an individual who—
(A) is a Member of Congress or Congres-
sional employee on December 31, 1995;
(B) has performed less than 5 years of
service as a Member of Congress or Congres-
sional employee on December 31, 1995; and
(C) after December 31, 1995, completes 5
years of service as a Member of Congress or
Congressional employee, that includes a period
of service performed as a Member of Congress
or Congressional employee before January 1,
1996.
(2) COMPUTATION OF ANNUITY.—In computing
the annuity of an individual described under para-
graph (1)—
(A) any period of service as a Member of
Congress or Congressional employee performed
before January 1, 1996, shall be computed
under section 8339 or 8415 of title 5, United
States Code (as though the amendments under
subsection (a) of this section were not enacted);
and
(B) the 5 year service requirement under
subsections (b) and (c) of section 8339 or 8415
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of such title (as in effect before the date of en-
actment of this Act) shall be deemed fulfilled.
(c) CAPITOL POLICE.—Section 8339(q) of title 5,
United States Code, is amended by striking out ‘‘with sub-
section (b), except that, in the case of a member who re-
tires under section 8335(d) or 8336(m), and who meets
the requirements of subsection (b)(2),’’ and inserting in
lieu thereof ‘‘with subsection (a), except that in the case
of a member who retires under section 8335(d) or
8336(m), and who has deductions withheld from his pay
or has made deposit covering his last 5 years of civilian
service,’’.
(d) ADMINISTRATIVE REGULATIONS.—The Office of
Personnel Management, in consultation with the Secretary
of the Senate and the Clerk of the House of Representa-
tives, may prescribe regulations to carry out the provisions
of this section and the amendments made by this section
for applicable employees and Members of Congress.
(e) EFFECTIVE DATES.—
(1) YEARS
OF
SERVICE; ANNUITY
COMPUTA-
TION.—
(A) SERVICE AFTER EFFECTIVE DATE.—
The amendments made by subsection (a) shall
take effect on January 1, 1996, and shall apply
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only with respect to the computation of an an-
nuity relating to—
(i) the service of a Member of Con-
gress as a Member or as a Congressional
employee performed on or after January 1,
1996; and
(ii) the service of a Congressional em-
ployee as a Congressional employee per-
formed on or after January 1, 1996.
(B) SERVICE BEFORE EFFECTIVE DATE.—
An annuity shall be computed as though the
amendments made under subsection (a) had not
been enacted with respect to—
(i) the service of a Member of Con-
gress as a Member or a Congressional em-
ployee or military service performed before
January 1, 1996; and
(ii) the service of a Congressional em-
ployee as a Congressional employee or mili-
tary service performed before January 1,
1996.
(C) ALTERNATIVE
EFFECTIVE
DATE
RE-
LATING
TO
MEMBERS
OF
CONGRESS.—If a
court of competent jurisdiction makes a final
determination that a provision of this para-
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graph violates the 27th amendment of the Unit-
ed States Constitution, the effective date and
application dates relating to Members of Con-
gress shall be January 1, 1997.
(2) ADMINISTRATIVE PROVISIONS.—The provi-
sions of subsections (b), (c), and (d) shall take effect
on the date of the enactment of this Act.
SEC. 
6004. 
ACCRUAL 
RATES 
RELATING 
TO 
CERTAIN
JUDGES WITH SIMILAR TREATMENT AS CON-
GRESSIONAL SERVICE.
(a) JUDGE OF THE UNITED STATES COURT OF MILI-
TARY APPEALS.—Section 8339(d)(7) of title 5, United
States Code, is amended by striking out ‘‘service.’’ and
inserting in lieu thereof ‘‘service performed before Janu-
ary 1, 1996.’’
(b) CLAIMS COURT JUDGE, BANKRUPTCY JUDGE,
UNITED STATES MAGISTRATE.—Section 8339(n) of title
5, United States Code, is amended by striking out ‘‘serv-
ice.’’ and inserting in lieu thereof ‘‘service performed be-
fore January 1, 1996. The annuity of any such employee
is, and with respect to any service referred to in the pre-
ceding sentence that is performed on or after January 1,
1996, computed under subsection (a).’’.
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SEC. 6005. REPEAL OF AUTHORIZATION OF TRANSITIONAL
APPROPRIATIONS FOR THE UNITED STATES
POSTAL SERVICE.
(a) REPEAL.—
(1) IN
GENERAL.—Section 2004 of title 39,
United States Code, is repealed.
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENT.—
(A) The table of sections for chapter 20 of
such title is amended by repealing the item re-
lating to section 2004.
(B) Section 2003(e)(2) of such title is
amended by striking ‘‘sections 2401 and 2004’’
each place it appears and inserting ‘‘section
2401’’.
(b) CLARIFICATION THAT LIABILITIES FORMERLY
PAID PURSUANT TO SECTION 2004 REMAIN LIABILITIES
PAYABLE BY THE POSTAL SERVICE.—Section 2003 of
title 39, United States Code, is amended by adding at the
end the following:
‘‘(h) Liabilities of the former Post Office Department
to the Employees’ Compensation Fund (appropriations for
which were authorized by former section 2004, as in effect
before the effective date of this subsection) shall be liabil-
ities of the Postal Service payable out of the Fund.’’.
(c) EFFECTIVE DATE.—
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(1) IN GENERAL.—This section and the amend-
ments made by this section shall be effective as of
October 1, 1995.
(2) PROVISIONS RELATING TO PAYMENTS FOR
FISCAL YEAR 1996.—
(A) AMOUNTS
NOT
YET
PAID.—No pay-
ment may be made to the Postal Service Fund,
on or after the date of the enactment of this
Act, pursuant to any appropriation for fiscal
year 1996 authorized by section 2004 of title
39, United States Code (as in effect before the
effective date of this section).
(B) AMOUNTS PAID.—If any payment to
the Postal Service Fund is or has been made
pursuant to an appropriation for fiscal year
1996 authorized by such section 2004, then an
amount equal to the amount of such payment
shall be paid from such Fund into the Treasury
as miscellaneous receipts.
SEC. 13103. REQUIREMENT THAT CERTAIN AGENCIES
PREFUND GOVERNMENT HEALTH BENEFITS
CONTRIBUTIONS FOR THEIR ANNUITANTS.
(a) DEFINITIONS.—For the purpose of this section—
(1) the term ‘‘agency’’ means any agency or
other instrumentality within the executive branch of
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the Government, the receipts and disbursements of
which are not generally included in the totals of the
budget of the United States Government submitted
by the President;
(2) the term ‘‘health benefits plan’’ means, with
respect to an agency, a health benefits plan, estab-
lished by or under Federal law, in which employees
or annuitants of such agency may participate;
(3) the term ‘‘health-benefits coverage’’ means
coverage under a health benefits plan;
(4) an individual shall be considered to be an
‘‘annuitant of an agency’’ if such individual is enti-
tled to an annuity, under a retirement system estab-
lished by or under Federal law, by virtue of—
(A) such individual’s service with, and sep-
aration from, such agency; or
(B) being the survivor of an annuitant
under subparagraph (A) or of an individual who
died while employed by such agency; and
(5) the term ‘‘Office’’ means the Office of Per-
sonnel Management.
(b) PREFUNDING REQUIREMENT.—
(1) IN GENERAL.—Effective as of October 1,
1996, each agency shall be required to prepay the
Government contributions which are or will be re-
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quired in connection with providing health-benefits
coverage for annuitants of such agency.
(2) REGULATIONS.—The Office shall prescribe
such regulations as may be necessary to carry out
this section. The regulations shall be designed to en-
sure at least the following:
(A) Amounts paid by each agency shall be
sufficient to cover the amounts which would
otherwise be payable by such agency (on a
‘‘pay-as-you-go’’ basis), on or after the applica-
ble effective date under paragraph (1), on be-
half of—
(i) individuals who are annuitants of
the agency as of such effective date; and
(ii) individuals who are employed by
the agency as of such effective date, or
who become employed by the agency after
such effective date, after such individuals
have become annuitants of the agency (in-
cluding their survivors).
(B)(i) For purposes of determining any
amounts payable by an agency—
(I) this section shall be treated as if
it had taken effect at the beginning of the
20-year period which ends on the effective
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date applicable under paragraph (1) with
respect to such agency; and
(II) in addition to any amounts pay-
able under subparagraph (A), each agency
shall also be responsible for paying any
amounts for which it would have been re-
sponsible, with respect to the 20-year pe-
riod described in subclause (I), in connec-
tion with any individuals who are annu-
itants or employees of the agency as of the
applicable effective date under paragraph
(1).
(ii) Any amounts payable under this sub-
paragraph for periods preceding the applicable
effective date under paragraph (1) shall be pay-
able in equal installments over the 20-year pe-
riod beginning on such effective date.
(c) FASB STANDARDS.—Regulations under sub-
section (b) shall be in conformance with the provisions of
standard 106 of the Financial Accounting Standards
Board, issued in December 1990.
(d) CLARIFICATION.—Nothing in this section shall be
considered to permit or require duplicative payments on
behalf of any individuals.
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(e) DRAFT LEGISLATION.—The Office shall prepare
and submit to Congress any draft legislation which may
be necessary in order to carry out this section.
TITLE VII—VETERANS AND RELATED
PROVISIONS
SEC. 10001. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This title may be cited as the
‘‘Veterans Reconciliation Act of 1995’’.
(b) TABLE OF CONTENTS.—The table of contents for
this title is as follows:
Sec. 10001. Short title; table of contents.
SUBTITLE A—EXTENSION OF TEMPORARY AUTHORITIES
Sec. 10011. Authority to require that certain veterans make copayments in ex-
change for receiving health-care benefits.
Sec. 10012. Medical care cost recovery authority.
Sec. 10013. Income verification authority.
Sec. 10014. Limitation on pension for certain recipients of medicaid-covered
nursing home care.
Sec. 10015. Home loan fees.
Sec. 10016. Procedures applicable to liquidation sales on defaulted home loans
guaranteed by the Department of Veterans Affairs.
Sec. 10017. Enhanced loan asset sale authority.
SUBTITLE B—OTHER MATTERS
Sec. 10021. Revision to prescription drug copayment.
Sec. 10022. Rounding down of cost-of-living adjustments in compensation and
DIC rates.
Sec. 10023. Revised standard for liability for injuries resulting from Depart-
ment of Veterans Affairs treatment.
Sec. 10024. Withholding of payments and benefits.
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Subtitle A—Extension of Temporary Authorities
SEC. 10011. AUTHORITY TO REQUIRE THAT CERTAIN VET-
ERANS MAKE COPAYMENTS IN EXCHANGE
FOR RECEIVING HEALTH-CARE BENEFITS.
(a) 
HOSPITAL
AND
MEDICAL
CARE.—Section
8013(e) of the Omnibus Budget Reconciliation Act of
1990 (38 U.S.C. 1710 note) is amended by striking out
‘‘September 30, 1998’’ and inserting in lieu thereof ‘‘Sep-
tember 30, 2002’’.
(b) OUTPATIENT MEDICATIONS.—Section 1722A(c)
of title 38, United States Code, is amended by striking
out ‘‘September 30, 1998’’ and inserting in lieu thereof
‘‘September 30, 2002’’.
SEC. 10012. MEDICAL CARE COST RECOVERY AUTHORITY.
Section 1729(a)(2)(E) of title 38, United States
Code, is amended by striking out ‘‘before October 1,
1998,’’ and inserting ‘‘before October 1, 2002,’’.
SEC. 10013. INCOME VERIFICATION AUTHORITY.
Section 5317(g) of title 38, United States Code, is
amended by striking out ‘‘September 30, 1998’’ and in-
serting in lieu thereof ‘‘September 30, 2002’’.
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SEC. 10014. LIMITATION ON PENSION FOR CERTAIN RECIPI-
ENTS 
OF 
MEDICAID-COVERED 
NURSING
HOME CARE.
Section 5503(f)(7) of title 38, United States Code,
is amended by striking out ‘‘September 30, 1998’’ and in-
serting in lieu thereof ‘‘September 30, 2002’’.
SEC. 10015. HOME LOAN FEES.
Section 3729(a) of title 38, United States Code, is
amended—
(1) in paragraph (4), by striking out ‘‘October
1, 1998’’ and inserting in lieu thereof ‘‘October 1,
2002’’; and
(2) in paragraph (5)(C), by striking out ‘‘Octo-
ber 1, 1998’’ and inserting in lieu thereof ‘‘October
1, 2002’’.
SEC. 10016. PROCEDURES APPLICABLE TO LIQUIDATION
SALES ON DEFAULTED HOME LOANS GUAR-
ANTEED BY THE DEPARTMENT OF VETERANS
AFFAIRS.
Section 3732(c)(11) of title 38, United States Code,
is amended by striking out ‘‘October 1, 1998’’ and insert-
ing ‘‘October 1, 2002’’.
SEC. 10017. ENHANCED LOAN ASSET SALE AUTHORITY.
Section 3720(h)(2) of title 38, United States Code,
is amended by striking out ‘‘December 31, 1995’’ and in-
serting in lieu thereof ‘‘September 30, 2002’’.
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Subtitle B—Other Matters
SEC. 1002.
ROUNDING DOWN OF COST-OF-LIVING AD-
JUSTMENTS IN COMPENSATION AND DIC
RATES.
(a) FISCAL YEAR 1996 COLA.—Effective as of De-
cember 1, 1995, the Secretary of Veterans Affairs shall
recompute any increase in an adjustment that is otherwise
provided by law to be effective during fiscal year 1996 in
the rates of disability compensation and dependency and
indemnity compensation paid by the Secretary as such
rates were in effect on November 30, 1995. The recom-
putation shall provide for the same percentage increase
as provided under such law, but with amounts so recom-
puted (if not a whole dollar amount).
‘‘§ 1103. Cost-of-living adjustments
‘‘(a) In the computation of cost-of-living adjustments
for fiscal years 1997 through 2002 in the rates of, and
dollar limitations applicable to, compensation payable
under this chapter, such adjustments shall be made by a
uniform percentage that is no more than the percentage
equal to the social security increase for that fiscal year,
with all increased monthly rates and limitations (other
than increased rates or limitations equal to a whole dollar
amount) rounded down to the next lower whole dollar
amount.
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‘‘(b) For purposes of this section, the term ‘social se-
curity increase’ means the percentage by which benefit
amounts payable under title II of the Social Security Act
(42 U.S.C. 401 et seq.) are increased for any fiscal year
as a result of a determination under section 215(i) of such
Act (42 U.S.C. 415(i)).’’.
(b) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 1102 the following new item:
‘‘1103. Cost-of-living adjustments.’’.
(c) OUT-YEAR DIC COLAS.—(1) Chapter 13 of title
38, United States Code, is amended by inserting after sec-
tion 1302 the following new section:
‘‘§ 1303. Cost-of-living adjustments
‘‘(a) In the computation of cost-of-living adjustments
for fiscal years 1997 through 2002 in the rates of depend-
ency and indemnity compensation payable under this
chapter, such adjustments shall be made by a uniform per-
centage that is no more than the percentage equal to the
social security increase for that fiscal year, with all in-
creased monthly rates (other than increased rates equal
to a whole dollar amount) rounded down to the next lower
whole dollar amount.
‘‘(b) For purposes of this section, the term ‘social se-
curity increase’ means the percentage by which benefit
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amounts payable under title II of the Social Security Act
(42 U.S.C. 401 et seq.) are increased for any fiscal year
as a result of a determination under section 215(i) of such
Act (42 U.S.C. 415(i)).’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 1302 the following new item:
‘‘1303. Cost-of-living adjustments.’’.
SEC. 10023.
REVISED STANDARD FOR LIABILITY FOR IN-
JURIES RESULTING FROM DEPARTMENT OF
VETERANS AFFAIRS TREATMENT.
(a) REVISED STANDARD.—Section 1151 of title 38,
United States Code, is amended—
(1) by designating the second sentence as sub-
section (c);
(2) by striking out the first sentence and insert-
ing in lieu thereof the following:
‘‘(a) Compensation under this chapter and depend-
ency and indemnity compensation under chapter 13 of this
title shall be awarded for a qualifying additional disability
of a veteran or the qualifying death of a veteran in the
same manner as if such disability or death were service-
connected.
‘‘(b)(1) For purposes of this section, a disability or
death is a qualifying additional disability or a qualifying
death only if the disability or death—
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‘‘(A) was caused by Department health care
and was a proximate result of—
‘‘(i) negligence on the part of the Depart-
ment in furnishing the Department health care;
or
‘‘(ii) an event not reasonably foreseeable;
or
‘‘(B) was incurred as a proximate result of the
provision of training and rehabilitation services by
the Secretary (including by a service-provider used
by the Secretary for such purpose under section
3115 of this title) as part of an approved rehabilita-
tion program under chapter 31 of this title.
‘‘(2) For purposes of this section, the term ‘Depart-
ment health care’ means hospital care, medical or surgical
treatment, or an examination that is furnished under any
law administered by the Secretary to a veteran by a De-
partment employee or in a facility over which the Sec-
retary has direct jurisdiction.
‘‘(3) A disability or death of a veteran which is the
result of the veteran’s willful misconduct is not a qualify-
ing disability or death for purposes of this section.’’; and
(3) by adding at the end the following:
‘‘(d) Effective with respect to injuries, aggravations
of injuries, and deaths occurring after September 30,
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2002, a disability or death is a qualifying additional dis-
ability or a qualifying death for purposes of this section
(notwithstanding the provisions of subsection (b)(1)) if the
disability or death—
‘‘(1) was the result of Department health care;
or
‘‘(2) was the result of the pursuit of a course
of vocational rehabilitation under chapter 31 of this
title.’’.
(b) CONFORMING AMENDMENTS.—Subsection (c) of
such section, as designated by subsection (a)(1), is amend-
ed—
(1) by striking out ‘‘, aggravation,’’ both places
it appears; and
(2) by striking out ‘‘sentence’’ and inserting in
lieu thereof ‘‘subsection’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to any administrative or judicial
determination of eligibility for benefits under section 1151
of title 38, United States Code, based on a claim that is
received by the Secretary on or after October 1, 1995, in-
cluding any such determination based on an original appli-
cation or an application seeking to reopen, revise, recon-
sider, or otherwise readjudicate any claim for benefits
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under section 1151 of that title or any predecessor provi-
sion of law.
SEC. 10024.
WITHHOLDING OF PAYMENTS AND BENE-
FITS.
(a) NOTICE REQUIRED IN LIEU OF CONSENT OR
COURT ORDER.—Section 3726 of title 38, United States
Code, is amended by striking out ‘‘unless’’ and all that
follows and inserting in lieu thereof the following: ‘‘unless
the Secretary provides such veteran or surviving spouse
with notice by certified mail with return receipt requested
of the authority of the Secretary to waive the payment
of indebtedness under section 5302(b) of this title. If the
Secretary does not waive the entire amount of the liability,
the Secretary shall then determine whether the veteran or
surviving spouse should be released from liability under
section 3713(b) of this title. If the Secretary determines
that the veteran or surviving spouse should not be released
from liability, the Secretary shall notify the veteran or sur-
viving spouse of that determination and provide a notice
of the procedure for appealing that determination, unless
the Secretary has previously made such determination and
notified the veteran or surviving spouse of the procedure
for appealing the determination.‘‘.
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(b) CONFORMING AMENDMENT.—Section 5302(b) of
such title is amended by inserting ‘‘with return receipt re-
quested’’ after ‘‘certified mail’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to any indebtedness
to the United States arising pursuant to chapter 37 of
title 38, United States Code, before, on, or after the date
of the enactment of this Act.
Subtitle C—Educational Benefits
SEC. 11031. LIMITATION REGARDING COST-OF-LIVING AD-
JUSTMENTS FOR MONTGOMERY GI BILL BEN-
EFITS.
With respect to each of fiscal years 1966 through
2002, the cost-of-living adjustments in the rates of edu-
cational assistance payable under chapter 30 of title 38,
United States Code, shall be the percentage equal to 50
percent of the percentage by which such assistance would
be increased under section 3015(g) of such title with re-
spect to such fiscal year but for this section.
TITLE VIII—ASSET SALES; USER FEES AND
OTHER MANDATORY PROGRAMS
Subtitle A—United States Enrichment Corporation
SEC. 3001. SHORT TITLE.
This subtitle may be cited as the ‘‘USEC Privatiza-
tion Act’’.
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SEC. 3002. PURPOSE.
The purpose of this subtitle is to transfer the interest
of the United States in the United States Enrichment Cor-
poration to the private sector in a manner that provides
for the long-term viability of the Corporation, provides for
the continuation by the Corporation of the operation of
the Department of Energy’s gaseous diffusion plants, pro-
vides for the protection of the public interest in maintain-
ing a reliable and economical domestic source of uranium
mining and enrichment services, and, to the extent not in-
consistent with such purposes, secures the maximum pro-
ceeds to the United States.
SEC. 3003. DEFINITIONS.
For purposes of this subtitle:
(1) The term ‘‘AVLIS’’ means atomic vapor
laser isotope separation technology.
(2) The term ‘‘Corporation’’ means the United
States Enrichment Corporation and, unless the con-
text otherwise requires, includes the private corpora-
tion and any successor thereto following privatiza-
tion.
(3) The term ‘‘gaseous diffusion plants’’ means
the Paducah Gaseous Diffusion Plant at Paducah,
Kentucky and the Portsmouth Gaseous Diffusion
Plant at Piketon, Ohio.
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(4) The term ‘‘highly enriched uranium’’ means
uranium enriched to 20 percent or more of the ura-
nium-235 isotope.
(5) The term ‘‘low-enriched uranium’’ means
uranium enriched to less than 20 percent of the ura-
nium-235 isotope, including that which is derived
from highly enriched uranium.
(6) The term ‘‘low-level radioactive waste’’ has
the meaning given such term in section 2(9) of the
Low-Level Radioactive Waste Policy Act (42 U.S.C.
2021b(9)).
(7) The term ‘‘private corporation’’ means the
corporation established under section 3005.
(8) The term ‘‘privatization’’ means the trans-
fer of ownership of the Corporation to private inves-
tors.
(9) The term ‘‘privatization date’’ means the
date on which 100 percent of the ownership of the
Corporation has been transferred to private inves-
tors.
(10) The term ‘‘public offering’’ means an un-
derwritten offering to the public of the common
stock of the private corporation pursuant to section
3004.
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(11) The ‘‘Russian HEU Agreement’’ means
the Agreement Between the Government of the
United States of America and the Government of
the Russian Federation Concerning the Disposition
of Highly Enriched Uranium Extracted from Nu-
clear Weapons, dated February 18, 1993.
(12) The term ‘‘Secretary’’ means the Secretary
of Energy.
(13) The ‘‘Suspension Agreement’’ means the
Agreement to Suspend the Antidumping Investiga-
tion on Uranium from the Russian Federation, as
amended.
(14) The term ‘‘uranium enrichment’’ means
the separation of uranium of a given isotopic content
into 2 components, 1 having a higher percentage of
a fissile isotope and 1 having a lower percentage.
SEC. 3004. SALE OF THE CORPORATION.
(a) AUTHORIZATION.—The Board of Directors of the
Corporation, with the approval of the Secretary of the
Treasury, shall transfer ownership of the assets and obli-
gations of the Corporation to the private corporation es-
tablished under section 3005 (which may be consummated
through a merger or consolidation effected in accordance
with, and having the effects provided under, the laws of
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the State of incorporation of the private corporation, as
if the Corporation were incorporated thereunder.).
(b) BOARD DETERMINATION.—The Board, with the
approval of the Secretary of the Treasury, shall select the
method of transfer and establish terms and conditions for
the transfer to provide the maximum proceeds to the
Treasury of the United States and to provide for the long-
term viability of the private corporation, the continued op-
eration of the gaseous diffusion plants, and the public in-
terest in maintaining reliable and economical domestic
uranium mining and enrichment industries.
(c) APPLICATION OF SECURITIES LAWS.—Any offer-
ing or sale of securities by the private corporation shall
be subject to the Securities Act of 1993 (15 U.S.C. 77a
et seq.), the Securities Exchange Act of 1934 (15 U.S.C.
78a et seq.), and the provisions of the Constitution and
laws of any State, territory, or possession of the United
States relating to transactions in securities.
(d) PROCEEDS.—Proceeds from the sale of the Unit-
ed States’ interest in the Corporation shall be—
(1) deposited in the general fund of the Treas-
ury;
(2) included in the budget baseline required by
the Balanced Budget and Emergency Deficit Control
Act of 1985; and
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(3) counted as an offset to direct spending for
purposes of section 252 of such Act, notwithstanding
section 257(e) of such Act.
(e) EXPENSES.—Expenses of privatization shall be
paid from Corporation revenue accounts in the United
States Treasury.
SEC. 3005 ESTABLISHMENT OF PRIVATE CORPORATION.
(a) INCORPORATION.—(1) The directors of the Cor-
poration shall establish a private for-profit corporation
under the laws of a State for the purpose of receiving the
assets and obligations of the Corporation at privatization
and continuing the business operations of the Corporation
following privatization.
(2) The directors of the Corporation may serve as
incorporators of the private corporation and shall take all
steps necessary to establish the private corporation, in-
cluding the filing of articles of incorporation consistent
with the privisions of this subtitle.
(3) Employees and officers of the Corporation (in-
cluding members of the Board of Directors) acting in ac-
cordance with this section on behalf of the private corpora-
tion shall be deemed to be acting in their official capacities
as employees or officers of the Corporation for purposes
of section 205 of title 18, United States Code.
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(b) STATUS OF THE PRIVATE CORPORATION.—(1)
The private corporation shall not be an agency, instrumen-
tality, or establishment of the United States, a Govern-
ment corporation, or a Government-controlled corporation.
(2) Except as otherwise provided by this subtitle, fi-
nancial obligations of the private corporation shall not be
obligations of, or guaranteed as to principal or interest
by, the Corporation or the United States, and the obliga-
tions shall so plainly state.
(3) No action under section 1491 of title 28, United
States Code, shall be allowable against the United States
based on actions of the private corporation.
(c) APPLICATION OF POST-GOVERNMENT EMPLOY-
MENT RESTRICTIONS.—Beginning on the privatization
date, the restrictions of sections 207(a), (b), (c), and (d)
of title 18, United States Code, shall not apply to the acts
of an individual done in carrying out official duties as a
director, officer, or employee of the private corporation,
if the individual was an officer or employee of the Corpora-
tion (including a director) continuously during the 45 days
prior to the privatization date.
(d) DISSOLUTION.—In the event that the privatiza-
tion does not occur, the Corporation will provide for the
dissolution of the private corporation within 1 year of the
private corporation’s incorporation unless the Secretary of
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the Treasury or his delegate, upon the Corporation’s re-
quest, agrees to delay any such dissolution for an addi-
tional year.
SEC. 3006. TRANSFERS TO THE PRIVATE CORPORATION.
Concurrent with privatization, the Corporation shall
transfer to the private corporation—
(1) the lease of the gaseous diffusion plants in
accordance with section 3007,
(2) all personal property and inventories of the
Corporation,
(3) all contracts, agreements, and leases under
section 3108(a),
(4) the Corporation’s right to purchase power
from the Secretary under section 3008(b),
(5) such funds in accounts of the Corporation
held by the Treasury or on deposit with any bank
or other financial institution as approved by the Sec-
retary of the Treasury, and
(6) all of the Corporation’s records, including
all of the papers and other documentary materials,
regardless of physical form or characteristics, made
or received by the Corporation.
SEC. 3007. LEASING OF GASEOUS DIFFUSION FACILITIES.
(a) TRANSFER OF LEASE.—Concurrent with privat-
ization, the Corporation shall transfer to the private cor-
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poration the lease of the gaseous diffusion plants and re-
lated property for the remainder of the term of such lease
in accordance with the terms of such lease.
(b) RENEWAL.—The private corporation shall have
the exclusive option to lease the gaseous diffusion plants
and related property for additional periods following the
expiration of the initial term of the lease.
(c) EXCLUSION OF FACILITIES FOR PRODUCTION OF
HIGHLY ENRICHED URANIUM.—The Secretary shall not
lease to the private corporation any facilities necessary for
the production of highly enriched uranium but may, sub-
ject to the requirements of the Atomic Energy Act of 1954
(42 U.S.C. 2011 et seq.), grant the Corporation access
to such facilities for purposes other than the production
of highly enriched uranium.
(d) DOE RESPONSIBILITY FOR PREEXISTING CONDI-
TIONS.—The payment of any costs of decontamination
and decommissioning, response actions, or corrective ac-
tions with respect to conditions existing before July 1,
1993, at the gaseous diffusion plants shall remain the sole
responsibility of the Secretary.
(e) ENVIRONMENTAL AUDIT.—For purposes of sub-
section (d), the conditions existing before July 1, 1993,
at the gaseous diffusion plants shall be determined from
the environmental audit conducted pursuant to section
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1403(e) of the Atomic Energy Act of 1954 (42 U.S.C.
2297c–2(e)).
(f) TREATMENT UNDER PRICE-ANDERSON PROVI-
SIONS.—Any lease executed between the Secretary and the
Corporation or the private corporation, and any extension
or renewal thereof, under this section shall be deemed to
be a contract for purposes of section 170d. of the Atomic
Energy Act of 1954 (42 U.S.C. 2210(d)).
(g) WAIVER OF EIS REQUIREMENT.—The execution
or transfer of the lease between the Secretary and the Cor-
poration or the private corporation, and any extension or
renewal thereof, shall not be considered a major Federal
action significantly affecting the quality of the human en-
vironment for purposes of section 102 of the National En-
vironmental Policy Act of 1969 (42 U.S.C. 4332).
SEC. 3008. TRANSFER OF CONTRACTS.
(a) TRANSFER
OF CONTRACTS.—Concurrent with
privatization, the Corporation shall transfer to the private
corporation all contracts, agreements, and leases, includ-
ing all uranium enrichment contracts that were—
(1) transferred by the Secretary to the Corpora-
tion pursuant to section 1401(b) of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2297c(b)), or
(2) entered into by the Corporation before the
privatization date.
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(b) NONTRANSFERABLE POWER CONTRACTS.—The
Corporation shall transfer to the private corporation the
right to purchase power from the Secretary under the
power purchase contracts for the gaseous diffusion plants
executed by the Secretary before July 1, 1993. The Sec-
retary shall continue to receive power for the gaseous dif-
fusion plants under such contracts and shall continue to
resell such power to the private corporation at cost during
the term of such contracts.
(c) EFFECTS OF TRANSFER.—(1) Notwithstanding
subsection (a), the United States shall remain obligated
to the parties to the contracts, agreements, and leases
transferred under subsection (a) for the performance of
its obligations under such contracts, agreements, or leases
during their terms. Performance of such obligations by the
private corporation shall be considered performance by the
United States.
(2) If a contract, agreement, or lease transferred
under subsection (a) is terminated, extended, or materially
amended after the privatization date—
(A) the private corporation shall be responsible
for any obligation arising under such contract,
agreement, or lease after any extension or material
amendment, and
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(B) the United States shall be responsible for
any obligation arising under the contract, agree-
ment, or lease before the termination, extension, or
material amendment.
(3) The private corporation shall reimburse the Unit-
ed States for any amount paid by the United States under
a settlement agreement entered into with the consent of
the private corporation or under a judgment, if the settle-
ment or judgment—
(A) arises out of an obligation under a contract,
agreement, or lease transferred under subsection (a),
and
(B) arises out of actions of the private corpora-
tion between the privatization date and the date of
a termination, extension, or material amendment of
such contract agreement, or lease.
(d) PRICING.—The Corporation may establish prices
for its products, materials, and services provided to cus-
tomers on a basis that will allow it to attain the normal
business objectives of a profitmaking corporation.
SEC. 3009. LIABILITIES.
(a) LIABILITY OF THE UNITED STATES.—(1) Except
as otherwise provided in this subtitle, all liabilities arising
out of the operation of the uranium enrichment enterprise
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before July 1, 1993, shall remain the direct liabilities of
the Secretary.
(2) Except as provided in subsection (a)(3) or other-
wise provided in a memorandum of agreement entered into
by the Corporation and the Office of Management and
Budget prior to the privatization date, all liabilities arising
out of the operation of the Corporation between July 1,
1993, and the privatization date shall remain the direct
liabilities of the United States.
(3) All liabilities arising out of the disposal of de-
pleted uranium generated by the Corporation between
July 1, 1993 and privatization date shall become the di-
rect liabilities of the Secretary.
(4) Any stated or implied consent for the United
States, or any agent or officer of the United States, to
be sued by any person for any legal, equitable, or other
relief with respect to any claim arising out of, or resulting
from, the privatization of the Corporation is hereby with-
drawn.
(5) To the extent that any claim against the United
States under this section is of the type otherwise required
by Federal statute or regulation to be presented to a Fed-
eral agency or official for adjudication or review, such
claim shall be presented to the Department of Energy in
accordance with the procedures to be established by the
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Secretary. Nothing in this paragraph shall be construed
to impose on the Department of Energy liability to pay
any claim presented pursuant to this paragraph.
(6) The Attorney General shall represent the United
States in any action seeking to impose liability under this
subsection.
(b) LIABILITY
OF
THE CORPORATION.—Notwith-
standing any provision of any agreement to which the Cor-
poration is a party, the Corporation shall not be consid-
ered in breach, default, or violation of any agreement be-
cause of the transfer of such agreement to the private cor-
poration under section 3008 or any other action the Cor-
poration is required to take under this subtitle.
(c) LIABILITY OF THE PRIVATE CORPORATION.—Ex-
cept as provided in this subtitle, the private corporation
shall be liable for any liabilities arising out of its oper-
ations after the privatization date.
(d) LIABILITY OF OFFICERS AND DIRECTORS.—(1)
No officer, director, employee, or agent of the Corporation
shall be liable in any civil proceeding to any party in con-
nection with any action taken in connection with the pri-
vatization if, with respect to the subject matter of the ac-
tion, suit, or proceeding, such person was acting within
the scope of his employment.
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(2) This subsection shall not apply to claims arising
under the Securities Exchange Act of 1933 (15 U.S.C.
77a et seq.), the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.), or under the Constitution or laws of
any State, territory, or possession of the United States
relating to transactions in securities.
SEC. 3010. EMPLOYEE PROTECTIONS.
(a) CONTRACTOR
EMPLOYEES.—(1) Privatization
shall not diminish the accrued, vested pension benefits of
employees of the Corporation’s operating contractor at the
two gaseous diffusion plants.
(2) In the event that the private corporation termi-
nates or changes the contractor at either or both of the
gaseous diffusion plants, the plan sponsor or other appro-
priate fiduciary of the pension plan covering employees of
the prior operating contractor shall arrange for the trans-
fer of all plan assets and liabilities relating to accrued pen-
sion benefits of such plan’s participants and beneficiaries
from such plant to a pension plan sponsored by the new
contractor or the private corporation or a joint labor-man-
agement plan, as the case may be.
(3) In addition to any obligations arising under the
National Labor Relations Act, any employer (including the
private corporation if it operates a gaseous diffusion plant
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without a contractor or any contractor of the private cor-
poration) at a gaseous diffusion plant shall—
(A) abide by the terms of any unexpired collec-
tive bargaining agreement covering employees in
bargaining units at the plant and in effect on the
privatization date until the stated expiration or ter-
mination date of the agreement; or
(B) in the event a collective bargaining agree-
ment is not in effect upon the privatization date,
have the same bargaining obligations under section
8(d) of the National Labor Relations Act (29 U.S.C.
158(d)) as it had immediately before the privatiza-
tion date.
(4) If the private corporation replaces its operating
contractor at a gaseous diffusion plant, the new employer
(including the new contractor or the private corporation
if it operates a gaseous diffusion plant without a contrac-
tor) shall—
(A) offer employment to non-management em-
ployees of the predecessor contractor to the extent
that their jobs still exist or they are qualified for
new jobs, and
(B) abide by the terms of the predecessor con-
tractor’s collective bargaining agreement until the
agreement expires or a new agreement is signed.
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The provisions of subparagraphs (A) and (B) apply
only to replacements of operating contractors at the gase-
ous diffusion plants during the first two years following
the privatization date (if any) and to the first bona fide
replacement of an operating contractor at a gaseous diffu-
sion plant following the expiration of that two year period.
For purposes of this paragraph, a replacement of an oper-
ating contractor is considered to be ‘‘bona fide’’ unless it
is made solely to evade or avoid the provisions of subpara-
graphs (A) and (B).
(5) In the event of a plant closing or mass layoff (as
such terms are defined in section 2(a) (2) and (3) of the
Worker Adjustment and Retraining Notification Act (29
U.S.C. 2102(2)(2) and (3))) at either of the gaseous diffu-
sion plants, the Secretary of Energy shall treat any ad-
versely affected employee of an operating contractor at ei-
ther plant who was an employee at such plant on July
1, 1993, as a Department of Energy employee for pur-
poses of sections 3161 and 3162 of the National Defense
Authorization Act for Fiscal Year 1993 (42 U.S.C.
7274h–7274i).
(6)(A) The Secretary and the private corporation
shall cause the post-retirement health benefits plan pro-
vider (or its successor) to continue to provide benefits for
persons employed by an operating contractor at either of
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the gaseous diffusion plants in an economically efficient
manner and at substantially the same level of coverage
as eligible retirees are entitled to receive on the privatiza-
tion date.
(B) Persons eligible for coverage under subparagraph
(A) shall be limited to:
(i) Persons who retired from active employment
at one of the gaseous diffusion plants on or before
the privatization date as vested participants in a
pension plan maintained either by the Corporation’s
operating contractor or by a contractor employed
prior to July 1, 1993, by the Department of Energy
to operate a gaseous diffusion plant.
(ii) Persons who are employed by the Corpora-
tion’s operating contractor on or before the privat-
ization date and are vested participants in a pension
plan maintained either by the Corporation’s operat-
ing contractor or by a contractor employed prior to
July 1, 1993, by the Department of Energy to oper-
ate a gaseous diffusion plant.
(C) The Secretary shall fund the entire cost of post-
retirement health benefits for persons who retired from
employment with an operating contractor prior to July 1,
1993.
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(D) The Secretary and the Corporation shall fund the
cost of post-retirement health benefits for persons who re-
tire from employment with an operating contractor after
July 1, 1993 in proportion to the retired person’s years
and months of service at a gaseous diffusion plant under
their respective management.
(7)(A) Any suit under this subsection alleging a viola-
tion of an agreement between an employer and a labor
organization shall be brought in accordance with section
301 of the Labor Management Relations Act (29 U.S.C.
185).
(B) Any charge under this subsection al-
leging an unfair labor practice violation of sec-
tion 8 of the National Labor Relations Act (29
U.S.C. 158) shall be pursued in accordance
with section 10 of the National Labor Relations
Act (29 U.S.C. 160).
(C) Any suit alleging a violation of any
provision of this subsection, to the extent it
does not allege a violation of the National
Labor Relations Act, may be brought in any
district court of the United States having juris-
diction of the parties, without regard to the
amount in controversy or the citizenships of the
parties.
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(b) FORMER FEDERAL EMPLOYEES.—(1)(A) Em-
ployees of the Corporation who were subject to either the
Civil Service Retirement System (CSRS) or the Federal
Employees’ Retirement System (FERS) on the day imme-
diately preceding the privatization date shall elect—
(i) to retain their coverage under either CSRS
or FERS, as applicable, in lieu of coverage by the
Corporation’s retirement system, or
(ii) to receive a deferred annuity or lump sum
benefit payable to a terminated employee under
CSRS or FERS, as applicable.
(B) Those employees electing subparagraph (A)(ii)
shall have the option to transfer the balance in their Thrift
Savings Plan account to a defined contribution plan under
the Corporation’s retirement system, consistent with appli-
cable law and the terms of the Corporation’s defined con-
tribution plan.
(2) The Corporation shall pay to the Civil Service Re-
tirement and Disability Fund—
(A) such employee deductions and agency con-
tributions as are required by sections 8334, 8422,
and 8423 of title 5, United States Code, for those
employees who elect to retain their coverage under
either CSRS or FERS pursuant to paragraph (1);
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(B) such additional agency contributions as are
determined necessary by the Office of Personnel
Management to pay, in combination with the sums
under subparagraph (A), the ‘‘normal cost’’ (deter-
mined using dynamic assumptions) of retirement
benefits for those employees who elect to retain their
coverage under CSRS pursuant to paragraph (1),
with the concept of ‘‘normal cost’’ being used con-
sistent with generally accepted actuarial standards
and principles; and
(C) such additional amounts, not to exceed two
percent of the amounts under subparagraphs (A)
and (B), as are determined necessary by the Office
of Personnel Management to pay the cost of admin-
istering retirement benefits for employees who retire
from the Corporation after the privatization date
under either CSRS or FERS, for their survivors,
and for survivors of employees of the Corporation
who die after the privatization date (which amounts
shall be available to the Office of Personnel Manage-
ment as provided in section 8348(a)(1)(B) of title 5,
United States Code).
(3) The Corporation shall pay to the Thrift Savings
Fund such employee and agency contributions as are re-
quired by section 8432 of title 5, United States Code, for
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those employees who elect to retain their coverage under
FERS pursuant to paragraph (1).
(4) Any employee of the Corporation who was subject
to the Federal Employee Health Benefits Program
(FEHBP) on the day immediately preceding the privatiza-
tion date and who elects to retain coverage under either
CSRS or FERS pursuant to paragraph (1) shall have the
option to receive health benefits from a health benefit plan
established by the Corporation or to continue without
interruption coverage under the FEHBP, in lieu of cov-
erage by the Corporation’s health benefit system.
(5) The Corporation shall pay to the Employees
Health Benefits Fund—
(A) such employee deductions and agency con-
tributions as are required by section 8906 (a)–(f) of
title 5, United States Code, for those employees who
elect to retain their coverage under FEHBP pursu-
ant to paragraph (4); and
(B) such amounts as are determined necessary
by the Office of Personnel Management under para-
graph (6) to reimburse the Office of Personnel Man-
agement for contributions under section 8906(g)(1)
of title 5, United States Code, for those employees
who elect to retain their coverage under FEHBP
pursuant to paragraph (4).
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(6) The amounts required under paragraph (5)(B)
shall pay the Government contributions for retired employ-
ees who retire from the Corporation after the privatization
date under either CSRS or FERS, for survivors of such
retired employees, and for survivors of employees of the
Corporation who die after the privatization date, with said
amounts prorated to reflect only that portion of the total
service of such employees and retired persons that was
performed for the Corporation after the privatization date.
SEC. 3011. OWNERSHIP LIMITATIONS.
No director, officer, or employee of the Corporation
may acquire directly or indirectly any securities, or any
rights to acquire any securities of the private corporation
on terms more favorable than those offered to the general
public—
(1) in a public offering designed to transfer
ownership of the Corporation to private investors,
(2) pursuant to any agreement, arrangement,
or understanding entered into before the privatiza-
tion date, or
(3) before the election of the directors of the
private corporation.
SEC. 3012. URANIUM TRANSFERS AND SALES.
(a) TRANSFERS AND SALES BY THE SECRETARY.—
The Secretary shall not provide enrichment services or
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transfer or sell any uranium (including natural uranium
concentrates, natural uranium hexafluoride, or enriched
uranium in any form) to any person except as consistent
with this section.
(b) RUSSIAN HEU.—(1) On or before December 31,
1996, the United States Executive Agent under the Rus-
sian HEU Agreement shall transfer to the Secretary with-
out charge title to an amount of uranium hexafluoride
equivalent to the natural uranium component of low-en-
riched uranium derived from at least 18 metric tons of
highly enriched uranium purchased from the Russian Ex-
ecutive Agent under the Russian HEU Agreement. The
quantity of such uranium hexafluoride delivered to the
Secretary shall be based on a tails assay of 0.30 U235.
Uranium hexafluoride transferred to the Secretary pursu-
ant to this paragraph shall be deemed under U.S. law,
for all purposes to be of Russian origin.
(2) Within 7 years of the date of enactment of this
subtitle, the Secretary shall sell, and receive payment for,
the uranium hexafluoride transferred to the Secretary pur-
suant to paragraph (1). Such uranium hexafluoride shall
be sold—
(A) at any time for use in the United States for
the purpose of overfeeding;
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(B) at any time for end use outside the United
States; or
(C) in calendar year 2001 for consumption by
end users in the United States not prior to January
1, 2002, in volumes not to exceed 3 million pounds
U3O8 equivalent per year.
(3) With respect to all enriched uranium delivered to
the United States Executive Agent under the Russian
HEU Agreement on or after January 1, 1997, the United
States Executive Agent shall, upon request of the Russian
Executive Agent, enter into an agreement to deliver con-
currently to the Russian Executive Agent an amount of
uranium hexafluoride equivalent to the natural uranium
component of such uranium. An agreement executed pur-
suant to a request of the Russian Executive Agent, as con-
templated in this paragraph, may pertain to any deliveries
due during any period remaining under the Russian HEU
Agreement. The quantity of such uranium hexafluoride de-
livered to the Russian Executive Agent shall be based on
a tails assay of 0.30 U235. Title to uranium hexafluoride
delivered to the Russian Executive Agent pursuant to this
paragraph shall transfer to the Russian Executive Agent
upon delivery of such material to the Russian Executive
Agent, with such delivery to take place at a North Amer-
ican facility designated by the Russian Executive Agent.
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Uranium hexafluoride delivered to the Russian Executive
Agent pursuant to this paragraph shall be deemed under
U.S. law for all purposes to be of Russian origin. Such
uranium hexafluoride may be sold to any person or entity
for delivery and use in the United States only as permitted
in subsections (b)(5), (b)(6) and (b)(7) of this section.
(4) In the event that the Russian Executive Agent
does not exercise its right to enter into an agreement to
take delivery of the natural uranium component of any
low-enriched uranium, as contemplated in paragraph (3),
within 90 days of the date such low-enriched uranium is
delivered to the United States Executive Agent, then the
United States Executive Agent shall engage an independ-
ent entity through a competitive selection process to auc-
tion an amount of uranium hexafluoride or U3O8 (in the
event that the conversion component of such hexafluoride
has previously been sold) equivalent to the natural ura-
nium component of such low-enriched uranium. Such inde-
pendent entity shall sell such uranium hexafluoride in one
or more lots to any person or entity to maximize the pro-
ceeds from such sales, for disposition consistent with the
limitations set forth in this subsection. The independent
entity shall pay to the Russian Executive Agent the pro-
ceeds of any such auction less all reasonable transaction
and other administrative costs. The quantity of such ura-
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nium hexafluoride auctioned shall be based on a tails assay
of 0.30 U235. Title to uranium hexafluoride auctioned pur-
suant to this paragraph shall transfer to the buyer of such
material upon delivery of such material to the buyer. Ura-
nium hexafluoride auctioned pursuant to this paragraph
shall be deemed under U.S. law for all purposes to be of
Russian origin.
(5) Except as provided in paragraphs (6) and (7),
uranium hexafluoride delivered to the Russian Executive
Agent under paragraph (3) or auctioned pursuant to para-
graph (4), may not be delivered for consumption by end
users in the United States either directly or indirectly
prior to January 1, 1998 and thereafter only in accord-
ance with the following schedule:
Annual Maximum Deliveries to End Users
Year:
(millions lbs. U3O8
equivalent)
1998 ...........................................................................................................
1999 ...........................................................................................................
2000 ...........................................................................................................
2001 ...........................................................................................................
2002 ...........................................................................................................
2003 ...........................................................................................................
2004 ...........................................................................................................
2005 ...........................................................................................................
2006 ...........................................................................................................
2007 ...........................................................................................................
2008 ...........................................................................................................
2009 and each succeeding year .................................................................
(6) Uranium hexafluoride delivered to the Rus-
sian Executive Agent under paragraph (3) or auc-
tioned pursuant to paragraph (4) may be sold at any
time as Russian-origin natural uranium in a
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matched sale pursuant to the Suspension Agree-
ment, and in such case shall not be counted against
the annual maximum deliveries set forth in para-
graph (5).
(7) Uranium hexafluoride delivered to the Rus-
sian Executive Agent under paragraph (3) or auc-
tioned pursuant to paragraph (4) may be sold at any
time for use in the United States for the purpose of
overfeeding in the operations of enrichment facilities.
(8) Nothing in this subsection (b) shall restrict
the sale of the conversion component of such ura-
nium hexafluoride.
(9) The Secretary of Commerce shall have re-
sponsibility for the administration and enforcement
of the limitations set forth in this subsection. The
Secretary of Commerce may require any person to
provide any certifications, information, or take any
action that may be necessary to enforce these limita-
tions. The U.S. Customs Service shall maintain and
provide any information required by the Secretary of
Commerce and shall take any action requested by
the Secretary of Commerce which is necessary for
the administration and enforcement of the uranium
delivery limitations set forth in this section.
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(10) The President shall monitor the actions of
the United States Executive Agent under the Rus-
sian HEU Agreement and shall report to the Con-
gress not later than December 31 of each year on
the effect the low-enriched uranium delivered under
the Russian HEU Agreement is having on the do-
mestic uranium mining, conversion, and enrichment
industries, and the operation of the gaseous diffu-
sion plants. Such report shall include a description
of actions taken or proposed to be taken by the
President to prevent or mitigate any material ad-
verse impact on such industries or any loss of em-
ployment at the gaseous diffusion plants as a result
of the Russian HEU Agreement.
(11)(A) In the event that the President makes
a determination that a waiver under this subsection
with respect to the importation of highly enriched
uranium or low-enriched uranium derived from high-
ly enriched uranium extracted from nuclear weapons
dismantled in the Russian Federation and purchased
from the Russian Federation under a government-
to-government agreement is in the national security
interest of the United States, then such highly en-
riched uranium and low-enriched uranium derived
from highly enriched uranium, including, within the
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limits established by this section, the natural ura-
nium component thereof and any uranium products
delivered pursuant to enrichment contracts affected
by such imports, shall not be subject to title VII of
the Tariff Act of 1930, to such extent, for such pe-
riod, and under such terms and conditions as may
be provided in the order making such determination.
(B) No person shall have any cause of action or
defense based on this section, and no court shall
have jurisdiction to entertain challenges based on
any action taken by the President or the Secretary
of Commerce pursuant to this section or on an al-
leged failure to take any such action.
(c) TRANSFERS TO THE CORPORATION.—
(1) The Secretary shall transfer to the Corpora-
tion without charge up to 50 metric tons of enriched
uranium and up to 7,000 metric tons of natural ura-
nium from the Department of Energy’s stockpile,
subject to the restrictions in subsection (c)(2).
(2) The Corporation shall not deliver for com-
mercial end use in the United States—
(A) any of the uranium transferred under
this subsection before January 1, 1998;
(B) more than 10 percent of the uranium
(by uranium hexafluoride equivalent content)
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transferred under this subsection or more than
4 million pounds, whichever is less, in any cal-
endar year after 1997; or
(C) more than 800,000 separative work
units contained in low-enriched uranium trans-
ferred under this subsection in any calendar
year.
(d) INVENTORY SALES.—(1) In addition to the trans-
fers authorized under subsections (c) and (e), the Sec-
retary may, from time to time, sell natural and low-en-
riched uranium (including low-enriched uranium derived
from highly enriched uranium) from the Department of
Energy’s stockpile.
(2) Except as provided in subsections (b), (c), and
(e), no sale or transfer of natural or low-enriched uranium
shall be made unless—
(A) the President determines that the material
is not necessary to national security needs,
(B) the Secretary determines that the sale of
the material will not have an adverse material im-
pact on the domestic uranium mining, conversion, or
enrichment industry, taking into account the sales of
uranium under the Russian HEU Agreement and
the Suspension Agreement, and
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(C) the price paid to the Secretary will not be
less than the fair market value of the material.
(e) GOVERNMENT TRANSFERS.—Nothwithstanding
subsection (d)(2), the Secretary may transfer or sell en-
riched uranium—
(1) to a Federal agency if the material is trans-
ferred for the use of the receiving agency without
any resale or transfer to another entity and the ma-
terial does not meet commercial specifications;
(2) to any person for national security pur-
poses, as determined by the Secretary; or
(3) to any State or local agency or nonprofit,
charitable, or educational institution for use other
than the generation of electricity for commercial use.
(f) SAVINGS PROVISION.—Nothing in this subtitle
shall be read to modify the terms of the Russian HEU
Agreement.
SEC. 3013. LOW-LEVEL WASTE.
(a) RESPONSIBILITY OF DOE.—(1) The Secretary,
at the request of the generator, shall accept for disposal
low-level radioactive waste, including depleted uranium if
it were ultimately determined to be low-level radioactive
waste, generated by—
(A) the Corporation as a result of the oper-
ations of the gaseous diffusion plants or as a result
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of the treatment of such wastes at a location other
than the gaseous diffusion plants, or
(B) any person licensed by the Nuclear Regu-
latory Commission to operate a uranium enrichment
facility under sections 53, 63, and 193 of the Atomic
Energy Act of 1954 (42 U.S.C. 2073, 2093, and
2243).
(2) Except as provided in paragraph (3), the genera-
tor shall reimburse the Secretary for the disposal of low-
level radioactive waste pursuant to paragraph (1) in an
amount equal to the Secretary’s costs, including a pro rata
share of any capital costs, but in no event more than an
amount equal to that which would be charged by commer-
cial, State, regional, or interstate compact entities for dis-
posal of such waste.
(3) In the event depleted uranium were ultimately de-
termined to be low-level radioactive waste, the generator
shall reimburse the Secretary for the disposal of depleted
uranium pursuant to paragraph (1) in an amount equal
to the Secretary’s costs, including a pro rata share of any
capital costs.
(b) AGREEMENTS WITH OTHER PERSONS.—The
generator may also enter into agreements for the disposal
of low-level radioactive waste subject to subsection (a)
with any person other than the Secretary that is author-
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ized by applicable laws and regulations to dispose of such
wastes.
(c) STATE
OR INTERSTATE COMPACTS.—Notwith-
standing any other provision of law, no State or interstate
compact shall be liable for the treatment, storage, or dis-
posal of any low-level radioactive waste (including mixed
waste) attributable to the operation, decontamination, and
decommissioning of any uranium enrichment facility.
SEC. 3014. AVLIS.
(a) EXCLUSIVE RIGHT TO COMMERCIALIZE.—The
Corporation shall have the exclusive commercial right to
deploy the use any AVLIS patents, processes, and tech-
nical information owned or controlled by the Government,
upon completion of a royalty agreement with the Sec-
retary.
(b) TRANSFER OF RELATED PROPERTY TO COR-
PORATION.—
(1) IN GENERAL.—To the extent requested by
Corporation and subject to the requirements of the
Atomic Energy Act of 1954, the President shall
transfer without charge to the Corporation all of the
right, title, or interest in and to property owned by
the United States under control or custody of the
Secretary that is directly related to and materially
useful in the performance of the Corporation’s pur-
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poses regarding AVLIS and alternative technologies
for uranium enrichment, including—
(A) facilities, equipment, and materials
and research, development, and demonstration
activities; and
(B) all other facilities, equipment, mate-
rials, processes, patents, technical information
of any kind, contracts, agreements, and leases.
(2) EXCEPTION.—Facilities, real estate, im-
provements, and equipment related to the gaseous
diffusion, and gas centrifuge, uranium enrichment
programs of the Secretary shall not transfer under
paragraph (1)(B).
(3) EXPIRATION OF TRANSFER AUTHORITY.—
The President’s authority to transfer property under
this subsection shall expire upon the privatization
date.
(c) 
LIABILITY
FOR
PATENT
AND
RELATED
CLAIMS.—With respect to any right, title, or interest pro-
vided to the Corporation under subsection (a) or (b), the
Corporation shall have sole liability for any payments
made or awards under section 157b.(3) of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2187(b)(3)), or any settle-
ments or judgments involving claims for alleged patent in-
fringement. Any royalty agreement under subsection (a)
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of this section shall provide for a reduction of royalty pay-
ments to the Secretary to offset any payments, awards,
settlements, or judgments under this subsection.
SEC. 3015. APPLICATION OF CERTAIN LAWS.
(a) OSHA.—(1) As of the privatization date, the pri-
vate corporation shall be subject to and comply with the
Occupational Safety and Health Act of 1970 (29 U.S.C.
651 et seq.).
(2) The Nuclear Regulatory Commission and the Oc-
cupational Safety and Health Administration shall, within
90 days after the enactment of this subtitle, enter into
a memorandum of agreement to govern the exercise of
their authority over occupational safety and health haz-
ards at the gaseous diffusion plants, including inspection,
investigation, enforcement, and rulemaking relating to
such hazards.
(b) ANTITRUST LAWS.—For purposes of the anti-
trust laws, the performance by the private corporation of
a ‘‘matched import’’ contract under the Suspension Agree-
ment shall be considered to have occurred prior to the pri-
vatization date, if at the time of privatization, such con-
tract had been agreed to by the parties in all material
terms and confirmed by the Secretary of Commerce under
the Suspension Agreement.
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(c) ENERGY
REORGANIZATION
ACT
REQUIRE-
MENTS.—(1) The private corporation and its contractors
shall be subject to the provisions of section 211 of the
Energy Reorganization Act of 1974 (42 U.S.C. 5851) to
the same extent as an employer subject to such section.
(2) With respect to the operation of the facilities
leased by the private corporation, section 206 of the En-
ergy Reorganization Act of 1974 (42 U.S.C. 5846) shall
apply of the directors and officers of the private corpora-
tion.
SEC. 3016. AMENDMENTS OF THE ATOMIC ENERGY ACT.
(a) REPEAL.—(1) Chapters 22 through 26 of the
Atomic Energy Act of 1954 (42 U.S.C. 1201–1608) are
repealed as of the privatization date.
(2) The table of contents of such Act is amended as
of the privatization date by striking the items referring
to sections repealed by paragraph (1).
(b) NRC LICENSING.—(1) Section 11v. of the Atomic
Energy Act of 1954 (42 U.S.C. 2014v.) is amended by
striking ‘‘or the construction and operation of a uranium
enrichment facility using Atomic Vapor Laser Isotope
Separation technology’’.
(2) Section 193 of the Atomic Energy Act of 1954
(42 U.S.C. 2243) is amended by adding at the end the
following:
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‘‘(f) LIMITATION.—No license or certificate of com-
pliance may be issued to the United States Enrichment
Corporation or its successor under sections 53, 63, 193,
or 1701, if in the opinion of the Commission, the issuance
of such a license or certificate of compliance—
‘‘(i) would be inimical to the common defense
and security of the United States; or
‘‘(ii) would be inimical to the maintenance of a
reliable and economical domestic source of enrich-
ment services because of the nature and extent of
the ownership, control, or domination of the Cor-
poration by a foreign corporation or a foreign gov-
ernment or any other relevant factors or cir-
cumstances.’’.
(3) Section 1701(c)(2) of the Atomic Energy Act of
1954 (42 U.S.C. 2297f(c)(2) is amended to read as fol-
lows:
‘‘(2) PERIODIC APPLICATION FOR CERTIFICATE
OF COMPLIANCE.—The Corporation shall apply to
the Nuclear Regulatory Commission for a certificate
of compliance under paragraph (1) periodically, as
determined by the Commission, by not less than
every 5 years. The Commission shall review any such
application and any determination made under sub-
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section (b)(2) shall be based on the results of any
such review.’’.
(4) Section 1702(a) of the Atomic Energy Act of
1954 (42 U.S.C. 2297f–1(a)) is amended—
(1) by striking ‘‘other than’’ and inserting ‘‘in-
cluding’’, and
(2) by striking ‘‘sections 53 and 63’’ and insert-
ing ‘‘sections 53, 63, and 193’’.
(c) JUDICIAL REVIEW OF NRC ACTIONS.—Section
189b. of the Atomic Energy Act of 1954 (42 U.S.C.
2239(b)) is amended to read as follows:
‘‘b. The following Commission actions shall be subject
to judicial review in the manner prescribed in chapter 158
of title 28, United States Code and chapter 7 of title 5,
United States Code:
‘‘(1) Any final order entered in any proceeding
of the kind specified in subsection (a).
‘‘(2) Any final order allowing or prohibiting a
facility to begin operating under a combined con-
struction and operation license.
‘‘(3) Any final order establishing by regulation
standards to govern the Department of Energy’s
gaseous diffusion uranium enrichment plants, in-
cluding any such facilities leased to a corporation es-
tablished under the USEC Privatization Act.
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‘‘(4) Any final determination relating to wheth-
er the gaseous diffusion plants, including any such
facilities leased to a corporation established under
the USEC Privatization Act, are in compliance with
the Commission’s standards governing the gaseous
diffusion plants and all applicable laws.’’.
(d) CIVIL PENALTIES.—Section 234a. of the Atomic
Energy Act of 1954 (42 U.S.C. 2282(a)) is amended by—
(1) striking ‘‘any licensing provision of sections
53, 57, 62, 63, 81, 82, 101, 103, 104, 107, or 109’’
and inserting: ‘‘any licensing or certification provi-
sion of section 53, 57, 62, 63, 81, 82, 101, 103,
104, 107, 109, or 1701’’; and
(2) by striking ‘‘any license issued thereunder’’
and inserting: ‘‘and license or certification issued
thereunder’’.
(e) REFERENCES TO THE CORPORATION.—Following
the privatization date, all references in the Atomic Energy
Act of 1954 to the United States Enrichment Corporation
shall be deemed to be references to the private corpora-
tion.
SEC. 3017. AMENDMENTS TO OTHER LAWS.
(a) DEFINITION OF GOVERNMENT CORPORATION.—
As of the privatization date, section 9101(3) of title 31,
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United States Code, is amended by striking subparagraph
(N).
(b) DEFINITION
OF
THE CORPORATION.—Section
1018(1) of the Energy Policy Act of 1992 (42 U.S.C.
2296b–7(1)) is amended by adding immediately before the
period ‘‘, or its successor’’.
(b) REPEAL OF PRIOR CONDITIONAL ENACTMENT.—
Section 8114A(b) of Public Law 103–335 (108 Stat.
2648) is repealed.
Subtitle B—Naval Petroleum Reserves Privatization
SEC. 4101. SHORT TITLE.
This subtitle may be cited as the ‘‘Naval Petroleum
Reserves Privatization Act’’.
PART I—DEFINITIONS, APPLICABILITY OF
TITLES
SEC. 4111. DEFINITIONS.
For the purposes of this subtitle:
(a) ‘‘Department’’ means the United States De-
partment of Energy.
(b) ‘‘Naval petroleum reserves’’ (referred to in
this subtitle as ‘‘the Reserves’’) means Naval Petro-
leum Reserve Numbered 1 (Elk Hills), located in
Kern County, California, established by Executive
order of the President, dated September 2, 1912;
Naval Petroleum Reserve Numbered 2 (Buena
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Vista), located in Kern County, California, estab-
lished by Executive order of the President, dated
December 13, 1912; Navel Petroleum Reserve Num-
bered 3 (Teapot Dome), located in Wyoming, estab-
lished by Executive order of the President, dated
April 30, 1915; Oil Shale Reserve Numbered 1, lo-
cated in Colorado, established by Executive order of
the President, dated December 6, 1916, as amended
by Executive order dated June 12, 1919; and Oil
Shale Reserve Numbered 3, located in Colorado, es-
tablished by Executive order of the President, dated
September 27, 1924.
(c) ‘‘Petroleum’’ includes crude oil, gases (in-
cluding natural gas), natural gasoline, and other re-
lated hydrocarbons, oil shale, and the products of
any of such resources.
(d) ‘‘Secretary’’ means the Secretary of Energy.
(e) ‘‘Unit Plan Contract’’ means the agreement
of June 19, 1944 between the Department and
Chevron U.S.A., Inc.
SEC. 4112. APPLICABILITY OF TITLES.
(a) Parts 1, 2, and 4, of this subtitle take effect upon
enactment of this subtitle.
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PART II—PRIVATIZATION
SEC. 4121. PRIVATIZATION PLAN AND IMPLEMENTATION.
(a) PREPARATION OF PLAN.—
(1) The Secretary shall prepare not later than
March 31, 1997, in consultation with the Secretary
of the Treasury, a plan for selling Naval Petroleum
Reserve Numbered 1 and for selling or leasing the
remaining Reserves out of Federal ownership, in fis-
cal year 2002.
(2) The plan shall include consideration of al-
ternative means for selling Naval Petroleum Reserve
Numbered 1 and for selling or leasing the remaining
Reserves. The plan shall include the estimated re-
turn on the Government’s investment in the Re-
serves achievable through each sale or lease alter-
native and shall include the Secretary’s rec-
ommendation on the preferred means of selling or
leasing the Reserves. The plan shall specify a mini-
mum acceptable price for the Reserves, which is not
less than the net present value of the sum of the:
(A) anticipated revenue stream that the
Secretary, in consultation with the Secretary of
the Treasury, determines the Treasury would
receive from the Reserves if they were not sold
or leased, and
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(B) the payments due under subsection
(g). The minimum acceptable price may be ad-
justed by the Secretary for relevant economic
factors after consideration of the results of the
studies conducted under subsection (c) of this
section.
(b) PRESIDENTIAL APPROVAL.—The Secretary shall
submit the plan to the President not later than March 31,
1997. The President may modify the minimum acceptable
price in the plan, or otherwise modify the plan. The Presi-
dent shall approve the plan with or without modifications
by June 30, 1997. When the plan is approved with or
without modification by the President, the Secretary shall
implement the plan. Not later than the end of fiscal year
2002 the Secretary of Energy shall enter into one or more
contracts for the sale of all rights, title, and interest of
the United States in and to all lands owned or controlled
by the United States inside Naval Petroleum Reserve
Numbered 1.
(c) ACQUISITION OF SERVICE.—The Secretary may
enter into contracts on a non-competitive basis for studies
relating to the preparation or implementation of the plan.
(d) EQUITY SHARES
IN NAVAL PETROLEUM RE-
SERVE NUMBERED 1.—
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(1) Not later than five months after the effec-
tive date, the Secretary shall finalize equity interests
of the known oil and gas zones in Naval Petroleum
Reserve Numbered 1 in the manner provided by this
subsection.
(2) The Secretary shall retain the services of an
independent petroleum engineer, mutually acceptable
to the equity owners, who shall prepare a rec-
ommendation on final equity figures. The Secretary
may accept the recommendation of the independent
petroleum engineer for final equity in each known oil
and gas zone and establish final equity interest in
Naval Petroleum Reserve Numbered 1 in accordance
with the recommendation, or the Secretary may use
such other method to establish final equity interest
in the reserve as the Secretary considers appro-
priate.
(3) If, on the effective date, there is an ongoing
equity redetermination dispute between the equity
owners under section 9(b) of the unit plan contract,
the dispute shall be resolved in the manner provided
in the unit plan contract within five months after
the effective date. The resolution shall be considered
final for all purposes under this section.
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(e) FUTURE LIABILITIES.—To effectuate the sale of
the interest of the United States in Naval Petroleum Re-
serve Numbered 1, the Secretary may extend such indem-
nities and warranties as the Secretary considers reason-
able and necessary to protect the purchaser from claims
arising from the ownership in the reserve by the United
States.
(f) DEPOSIT OF PROCEEDS.—Proceeds from the sale
or lease of the Reserves under this subtitle shall be depos-
ited into miscellaneous receipts in the Treasury.
(g) REVENUE SHARING WITH THE STATE OF CALI-
FORNIA.—Notwithstanding any other law, the Secretary
of the Treasury shall pay to the State of California (to
be credited by the State to the Supplemental Benefits
Maintenance Account within the Teachers’ Retirement
Fund) seven percent of proceeds from the sale of Naval
Petroleum Reserve Numbered 1. The State of California
share (seven percent of proceeds) shall be paid in annual
installments of 2.25 percent of the share in each fiscal
year from the date of sale for 9 fiscal years, and 25.75
of the share in the tenth fiscal year. Payments under this
subsection may begin upon a release of all claims against
the United States by the State of California and the
Teachers’ Retirement Fund with respect to production
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and proceeds of sale from Naval Petroleum Reserve Num-
bered 1.
(h) EXPENDITURES FOR SALE OR LEASE.—(1) Sec-
tion 501 of Public Law 101–45 is hereby repealed.
(2) Unobligated balances in the Naval Petroleum and
Oil Shale Reserves account shall be used for necessary ex-
penses related to sale of lease of the reserves.
(a) EFFECT ON EXISTING CONTRACTS.—(1) In the
case of any contract, in effect on the effective date, for
the purchase of production from any part of the United
States’ share of Naval Petroleum Reserve Numbered 1,
the sale of the interest of the United States in the reserve
shall be subject to the contract for a period of three
months after the closing date of the sale or until termi-
nation of the contract, whichever occurs first. The term
of any contract entered into after the effective date for
the purchase of the production shall not exceed the antici-
pated closing date for the sale of the reserve.
(2) The Secretary shall exercise the termination pro-
cedures provided in the contract between the United
States and Bechtel Petroleum Operations, Inc., Contract
Number DE–ACO1–85FE60520 or in any subsequent
management and operating contract so that the contract
terminates not later than the date of closing of the sale
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of Naval Petroleum Reserve Numbered 1 under section
3412.
(3) The Secretary shall exercise the termination pro-
cedures provided in the unit plan contract so that the unit
plan contract terminates not later than the date of closing
of the sale reserve.
(b) EFFECT ON ANTITRUST LAWS.—Nothing in this
subtitle shall be construed to alter the application of the
antitrust laws of the United States to the purchaser or
purchasers (as the case may be) of Naval Petroleum Re-
serve Numbered 1 or to the lands in the reserve subject
to sale or lease under Section 4121 upon the completion
of the sale or lease.
(c) PRESERVATION OF PRIVATE RIGHT, TITLE, AND
INTEREST.—Nothing in this subtitle shall be construed to
adversely affect the ownership interest of any other entity
having any right, title, and interest in and to lands within
the boundaries of Naval Petroleum Reserve Numbered 1
and which are subject to the unit plan contract.
The Secretary may transfer to the purchaser or pur-
chasers (as the case may be) of Naval Petroleum Reserve
Numbered 1 the incidental take permit regarding the re-
serve issued to the Secretary by the United States Fish
and Wildlife Serve and in effect on the effective date if
the Secretary determines that transfer of the permit is
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necessary to expedite the sale of the reserve in a manner
that maximized the value of the sale to the United States.
The transferred permit shall cover the identical activities,
and shall be subject to the same terms and conditions,
as apply to the permit at the time of the transfer.
SEC. 4122. RELATIONSHIP TO BALANCED BUDGET AND
EMERGENCY DEFICIT CONTROL ACT OF 1985.
If the President so designates, the net proceeds from
privatizing the Reserves under this subtitle shall be in-
cluded in the budget baseline required by the Balanced
Budget and Emergency Deficit Control Act of 1985 and
shall be counted for the purposes of section 252 of that
Act as an offset to direct spending notwithstanding section
257(a) of the Act.
SEC. 4123. DISCRETIONARY SPENDING LIMITS.
(a) Upon sale of the NPR Numbered 1 the discre-
tionary spending limits set forth in section 601(a)(2) of
the Congressional Budget Act of 1974 (2 U.S.C.
665(a)(2)) (as adjusted in conformance with section 251
of the Balanced Budget and Emergency Deficit Control
Act of 1985) for fiscal year 2003 are reduced as follows:
for fiscal year 2002 for the discretionary category:
$158 million in new budget authority and $166 mil-
lion in outlays.
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(b) For fiscal year 2004, the comparable amount for
budgetary purposes is considered to be $158 million in
new budget authority and $166 million in outlays. For fis-
cal year 2005 the comparable amount for budgetary pur-
poses is considered to be $158 million in new budget au-
thority and $166 million in outlays.
PART III—OIL SHALE RESERVE
NUMBERED 2
SEC. 4131.
TRANSFER.
Subject to sections 4132 and 4133 of this subtitle,
the functions vested in the Secretary with regard to Oil
Shale Reserve Numbered 2 (located in Utah, established
by Executive order of the President dated December 6,
1916) by chapter 641 of title 10, United States Code, as
amended by section 501 of this Act, are transferred to
and vested in the Secretary of the Interior.
SEC. 4132.
GREEN RIVER AREA.
(a) REPORT AND MANAGEMENT OF AREA.—The Sec-
retary of the Interior shall study and submit to the Presi-
dent a report on the appropriateness of including the
Green River area within the national wild and scenic rivers
system. During the study period, the Secretary of the Inte-
rior shall manage the Green River area in a manner con-
sistent with the memorandum of understanding between
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the Department of Energy and the Department of the In-
terior under which the reserve is being currently managed.
(b) For purposes of this section, ‘‘Green River area’’
means the following area within Oil Shale Reserve Num-
bered 2: The segments of the Green River that are within
the boundaries of Oil Shale Reserve Numbered 2, which
include the approximately 11.6 mile segment of the Green
River extending from the northern boundary of Oil Shale
Reserve Numbered 2 near Duchess Hole to the western
boundary of Oil Shale Reserve Numbered 2 near Rock
House Bottom and the approximately .6 mile segment of
the Green River in Oil Shale Reserve Numbered 2 near
the base of Peters Point, and the area extending one-half
mile from the river on each side of these segments.
SEC. 4133.
UINTAH AND OURAY INDIAN RESERVATION.
Nothing in this subtitle affects any interest in, or
right or obligation respecting, the Uintah and Ouray In-
dian Reservation.
PART IV—MISCELLANEOUS
SEC. 4151.
AMENDMENTS TO CHAPTER 641 OF TITLE 10,
UNITED STATES CODE.
Chapter 641 of title 10, United States Code, is
amended:
(a) in the table of contents, by renaming section
7438 ‘‘Mining and removal of oil shale.’’;
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(b) in section 7420, by striking paragraph (6);
(c) in section 7421(a), by striking ‘‘for national
defense purposes, except as otherwise provided in
this chapter’’;
(d) by amending section 7422 to read as fol-
lows:
‘‘(a) Prior to privatization, the Secretary,
directly or by contract, lease, or otherwise, shall
explore, 
prospect, 
conserve, 
develop, 
use,
produce, and operate the naval petroleum re-
serves to maximize the economic value of these
properties to the Nation, except that no petro-
leum leases shall be granted at Naval Petro-
leum Reserves Numbered 1 and 3.
‘‘(b) The Secretary shall dispose of the
United States’ share of petroleum produced
from the naval petroleum reserves in accord-
ance with section 7430 of this chapter.
‘‘(c) The Secretary may construct, acquire,
or contract for the use of storage and shipping
facilities, and pipelines and associated facilities,
on and off the naval petroleum reserves, for
transporting petroleum to locations where it will
be refined or shipped.
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‘‘(d) The Secretary may store petroleum
owned or managed by other Federal agencies
and instrumentalities, for appropriate reim-
bursement reasonably reflecting fair market
value.
‘‘(e) The Secretary may acquire a pipeline
in the vicinity of a naval petroleum reserve not
otherwise operated as a common carrier, by
condemnation, if necessary, if the pipeline
owner refuses to accept, convey, and transport
petroleum produced at that reserve without dis-
crimination and at reasonable rates. The Sec-
retary may acquire rights-of-way for new pipe-
lines and associated facilities by eminent do-
main under the Act of February 26, 1931 (40
U.S.C. 258a–258e), and the prospective holder
of the right-of-way is ‘‘the authority empowered
by law to acquire the lands’’ within the meaning
of that Act. New pipelines shall accept, convey,
and transport any petroleum produced at the
naval petroleum reserves at reasonable rates as
a common carrier,’’;
(e) in section 7423, by striking ‘‘when that pro-
duction is authorized under section 7422 of this
title’’;
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(f) in section 7425(a), by striking ‘‘, with the
approval of the President,’’;
(g) in section 7426, as follows:
(1) by striking ‘‘Subject to the provisions
of section 7422(c) of this title, the’’ and insert-
ing ‘‘The’’ in subsection (a),
(2) by inserting ‘‘as is fixed, or’’ after
‘‘contract,’’ in subsection (b), and
(3) by striking ‘‘than having petroleum
produced for national defense’’ and inserting
‘‘producing petroleum’’ in subsection (c);
(h) in section 7427, by striking ‘‘, with the con-
sent of the President,’’;
(i) in section 7428, by striking ‘‘approval by the
President and to’’;
(j) in section 7429, by striking ‘‘If any such
land is to be re-leased, the’’ and inserting ‘‘The’’;
(k) in section 7430, as follows:
(l) by amending subsection (b)(2) to read as follows:
‘‘(2) The Secretary may not sell any part of the
United States share of petroleum produced from
Naval Petroleum Reserves Numbered 1, 2, and 3 for
less than the Secretary’s estimate of the current
sales price of comparable petroleum in the same
area.’’,
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(2) by striking ‘‘Naval Petroleum Reserves
Numbered 1 or Numbered 3’’ and inserting
‘‘the naval petroleum reserves’’ in subsection
(j),
(3)(A) by amending subsection (l)(1) to
read as follows: ‘‘Notwithstanding any other
provision of this chapter (but subject to para-
graph (2)), the Secretary may provide any por-
tion of the United States share of petroleum to
any other Federal agency or instrumentality for
its use in order to meet petroleum product re-
quirements of the Federal Government.’’;
(B) by striking ‘‘the Department of De-
fense’’ and inserting ‘‘any other Federal agency
or instrumentality’’ and striking ‘‘Secretary of
Defense’’ and inserting ‘‘other Federal agencies
and instrumentalities’’ in subsection (l)(2); and
(C) by striking ‘‘exchange’’ and inserting
‘‘transaction’’ in subsection (l)(3), and
(4) by striking subsections (c), (d), (e), (f),
(g), (h), and (i);
(l) in section 7431, as follows:
(1) by striking ‘‘and approval’’ in the catch
line,
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(2) by striking ‘‘and the President’s ap-
proval must be obtained’’ in subsection (a),
(3) by striking 11 and Presidential ap-
proval are’’ and inserting ‘‘is’’ in subsection
(a)(2), and
(4) by striking subsections (a)(3), and (c);
(m) by amending section 7432 to read as follows:
‘‘§ 7432. Production Enhancement
‘‘Not more than $60 million of the United States
share of amounts collected in fiscal year 1996 under the
Emergency Petroleum Allocation Act of 1973 (15 U.S.C.
§ 751 et seq.) may be used to enhance production from
the Reserves in that fiscal year, to the extent provided in
an appropriations Act.’’;
(n) by amending section 7434 to read as follows:
‘‘Prior to privatization, the Secretary shall submit a report
to the Committee on Armed Services of the Senate and
the Committee on National Security of the House of Rep-
resentatives, within 270 days of the end of each fiscal
year, on production from the naval petroleum reserves for
the preceding fiscal year and on other naval petroleum re-
serves matters the Secretary considers appropriate.’’; and
(o) by amending section 7438 to read as follows:
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‘‘§ 7438. Mining and removal of oil shale
‘‘(a) Except as provided in title III of the Naval Pe-
troleum Reserves Privatization Act, prior to privatization
the Secretary may mine and remove, or authorize the min-
ing and removal of, oil shale or oil shale products from
Oil Shale Reserves Numbered 1, 2, and 3 needed for the
national defense or for research, development, test, evalua-
tion, and demonstration work, at prices and under other
terms that the Secretary directs.
‘‘(b) This section is not intended to authorize the
commercial development and operation of the naval oil
shale reserves by the Government in competition with pri-
vate industry.’’.
SEC. 4132. CONFORMING AMENDMENTS AND REPEALERS.
(a) Section 2 of Pub. L. No. 96–137, 93 Stat. 1061
(1979) (42 U.S.C. 7156a) is repealed.
(b) Section 501 of the Dire Emergency Supplemental
Appropriations and Transfers, Urgent Supplementals, and
correcting Enrollment Errors Act of 1989 (10 U.S.C.
7431 note) is repealed.
(c) Chapter 641 of title 10 United States Code ceases
to apply to any Reserve that is privatized.
CHAPTER 2—DEPARTMENT OF ENERGY
SEC. 5221. SALE OF DOE ASSETS.
(a) ASSET MANAGEMENT AND DISPOSITION PRO-
GRAM.—
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(1) IN GENERAL.—In order to maximize the use
of Department of Energy assets and to reduce over-
head and other costs related to asset management at
the Department’s facilities and laboratories, the Sec-
retary of Energy shall conduct an asset management
and disposition program that will result in not less
than $225,000,000 in receipts and savings by Octo-
ber 1, 2000.
(2) ITEMS
TO
BE
INCLUDED.—The program
shall include an inventory of assets in the care of the
Department and its contractors; the recovery, reuse,
and stewardship of assets; and disposition of a mini-
mum of 1,139,000,000 pounds of fuel, 136,000 tons
of chemicals and industrial gases, 557,000 tons of
scrap metal, 14,000 radiation sources, 17,000 pieces
of major equipment, 11,000 pounds of precious met-
als, and 91,000,000 pounds of base metals.
(b) FEDERAL
PROPERTY
AND
ADMINSTRATIVE
SERVICES ACT.—The disposition of assets under this sec-
tion is not subject to section 202 or 203 of the Federal
Property and Administrative Services Act of 1949 (40
U.S.C. 483, 484) or section 13 of the Surplus Property
Act of 1944 (50 U.S.C. App. 1622). In order to avoid mar-
ket disruptions, the Secretary shall consult with appro-
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priate executive agencies with respect to dispositions
under this section.
(c) DISPOSITION OF PROCEEDS.—After deduction of
administrative costs of disposition under this section not
to exceed $7,000,000 per year, the remainder of the pro-
ceeds from dispositions under this subpart shall be re-
turned to the Treasury as miscellaneous receipts. There
shall be established a new receipt account in the Treasury
for proceeds of asset sales under this section.
SEC. 5222. SALE OF WEEKS ISLAND OIL.
Notwithstanding section 161 of the Energy Policy
and Conservation Act (42 U.S.C. 6241), the Secretary of
Energy shall draw down and sell 32,000,000 barrels of
oil contained in the Weeks Island Strategic Petroleum Re-
serve Facility. The Secretary shall, to the greatest extent
practicable, sell oil from the reserve in a manner that
minimizes the impact of such sale upon supply levels and
market forces.
SEC. 5223. LEASE OF EXCESS STRATEGIC PETROLEUM RE-
SERVE CAPACITY.
(a) AMENDMENT.—Part B of title I of the Energy
Policy and Conservation Act (42 U.S.C. 6231 et seq.) is
amended by adding at the end the following:
‘‘USE OF UNDERUTILIZED FACILITIES
‘‘SEC. 168. (a) AUTHORITY.—Notwithstanding any
other provision of this title, the Secretary, by lease or oth-
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erwise, for any term and under such other conditions as
the Secretary considers necessary or appropriate, may
store in underutilized Strategic Petroleum Reserve facili-
ties petroleum product owned by a foreign government or
its representative. Petroleum products stored under this
section are not part of the Strategic Petroleum Reserve
and may be exported without license from the United
States.
‘‘(b) PROTECTION OF FACILITIES.—All agreements
entered into pursuant to subsection (a) shall contain provi-
sions providing for fees to fully compensate the United
States for all costs of storage and removals of petroleum
products, including the cost of replacement facilities neces-
sitated as a result of any withdrawals.
‘‘(c) ACCESS TO STORED OIL.—The Secretary shall
ensure that agreements to store petroleum products for
foreign governments or their representatives do not affect
the ability of the United States to withdraw, distribute,
or sell petroleum from the Strategic Petroleum reserve in
response to an energy emergency or to the obligations of
the United States under the Agreement on an Inter-
national Energy Program’’.
(b) TABLE OF CONTENTS AMENDMENT.—The table
of contents of part B of title I of the Energy Policy and
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Conservation Act is amended by adding at the end the
following:
‘‘Sec. 168. Use of underutilized facilities.’’.
Subtitle C—Natural Resources
Subchapter B—Helium Reserves
SEC. 5311. SHORT TITLE.
This subchapter may be cited as the ‘‘Helium Act of
1995’’.
SEC. 5312. AMENDMENT OF HELIUM ACT.
Except as otherwise expressly provided, whenever in
this chapter an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of the Helium Act (50 U.S.C.
167 to 167n).
SEC. 5313. AUTHORITY OF SECRETARY.
Sections 3, 4, and 5 are amended to read as follows:
‘‘SEC. 3. AUTHORITY OF SECRETARY.
‘‘(a) EXTRACTION AND DISPOSAL OF HELIUM ON
FEDERAL LANDS.—
‘‘(1) IN GENERAL.—The Secretary may enter
into agreements with private parties for the recovery
and disposal of helium on Federal lands upon such
terms and conditions as the Secretary deems fair,
reasonable, and necessary.
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‘‘(2) LEASEHOLD RIGHTS.—The Secretary may
grant leasehold rights to any such helium.
‘‘(3) LIMITATION.—The Secretary may not
enter into any agreement by which the Secretary
sells such helium other than to a private party with
whom the Secretary has an agreement for recovery
and disposal of helium.
‘‘(4) REGULATIONS.—Agreements under para-
graph (1) may be subject to such regulations as may
be prescribed by the Secretary.
‘‘(5) EXISTING RIGHTS.—An agreement under
paragraph (1) shall be subject to any rights of any
affected Federal oil and gas lessee that may be in
existence prior to the date of the agreement.
‘‘(6) TERMS AND CONDITIONS.—An agreement
under paragraph (1) (and any extension or renewal
of an agreement) shall contain such terms and con-
ditions as the Secretary may consider appropriate.
‘‘(7) PRIOR
AGREEMENTS.—This subsection
shall not in any manner affect or diminish the rights
and obligations of the Secretary and private parties
under agreements to dispose of helium produced
from Federal lands in existence on the date of enact-
ment of the Helium Act of 1995 except to the extent
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that such agreements are renewed or extended after
that date.
‘‘(b) STORAGE, TRANSPORTATION AND SALE.—The
Secretary may store, transport, and sell helium only in ac-
cordance with this Act.
‘‘SEC. 4. STORAGE, TRANSPORTATION, AND WITHDRAWAL
OF CRUDE HELIUM.
‘‘(a) 
STORAGE, 
TRANSPORTATION
AND
WITH-
DRAWAL.—The Secretary may store, transport and with-
draw crude helium and maintain and operate crude helium
storage facilities, in existence on the date of enactment
of the Helium Act of 1995 at the Bureau of Mines Cliff-
side Field, and related helium transportation and with-
drawal facilities.
‘‘(b) CESSATION OF PRODUCTION, REFINING, AND
MARKETING.—Not later than 18 months after the date
of enactment of the Helium Act of 1995, the Secretary
shall cease producing, refining, and marketing refined he-
lium and shall cease carrying out all other activities relat-
ing to helium which the Secretary was authorized to carry
out under this Act before the date of enactment of the
Helium Act of 1995, except activities described in sub-
section (a).
‘‘(c) DISPOSAL OF FACILITIES.—
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‘‘(1) IN GENERAL.—Subject to paragraph (5),
not later than 24 months after the cessation of ac-
tivities referred to in section (b) of this section, the
Secretary shall designate as excess property and dis-
pose of all facilities, equipment, and other real and
personal property, and all interests therein, held by
the United States for the purpose of producing, re-
fining and marketing refined helium.
‘‘(2) APPLICABLE LAW.—The disposal of such
property shall be in accordance with the Federal
Property and Administrative Services Act of 1949.
‘‘(3) PROCEEDS.—All proceeds accruing to the
United States by reason of the sale or other disposal
of such property shall be treated as moneys received
under this chapter for purposes of section 6(f).
‘‘(4) COSTS.—All costs associated with such
sale and disposal (including costs associated with
termination of personnel) and with the cessation of
activities under subsection (b) shall be paid from
amounts available in the helium production fund es-
tablished under section 6(f).
‘‘(5) EXCEPTION.—Paragraph (1) shall not
apply to any facilities, equipment, or other real or
personal property, or any interest therein, necessary
for the storage, transportation and withdrawal of
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crude helium or any equipment, facilities, or other
real or personal property, required to maintain the
purity, quality control, and quality assurance of
crude helium in the Bureau of Mines Cliffside Field.
‘‘(d) EXISTING CONTRACTS.—
‘‘(1) IN GENERAL.—All contracts that were en-
tered into by any person with the Secretary for the
purchase by the person from the Secretary of refined
helium and that are in effect on the date of the en-
actment of the Helium Act of 1995 shall remain in
force and effect until the date on which the refining
operations cease, as described in subsection (b).
‘‘(2) COSTS.—Any costs associated with the ter-
mination of contracts described in paragraph (1)
shall be paid from the helium production fund estab-
lished under section 6(f).
‘‘SEC. 5. FEES FOR STORAGE, TRANSPORTATION AND WITH-
DRAWAL.
‘‘(a) IN GENERAL.—Whenever the Secretary provides
helium storage withdrawal or transportation services to
any person, the Secretary shall impose a fee on the person
to reimburse the Secretary for the full costs of providing
such storage, transportation, and withdrawal.
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‘‘(b) TREATMENT.—All fees received by the Secretary
under subsection (a) shall be treated as moneys received
under this Act for purposes of section 6(f).’’.
SEC. 5314. SALE OF CRUDE HELIUM.
(a) Subsection 6(a) is amended by striking ‘‘from the
Secretary’’ and inserting ‘‘from persons who have entered
into enforceable contracts to purchase an equivalent
amount of crude helium from the Secretary’’.
(b) Subsection 6(b) is amended—
(1) by inserting ‘‘crude’’ before ‘‘helium’’; and
(2) by adding the following at the end: ‘‘Except
as may be required by reason of subsection (a), sales
of crude helium under this section shall be in
amounts as the Secretary determines, in consulta-
tion with the helium industry, necessary to carry out
this subsection with minimum market disruption.’’.
(c) Subsection 6(c) is amended—
(1) by inserting ‘‘crude’’ after ‘‘Sales of’’; and
(2) by striking ‘‘together with interest as pro-
vided in this subsection’’ and all that follows
through the end of the subsection and inserting ‘‘all
funds required to be repaid to the United States as
of October 1, 1995 under this section (referred to in
this subsection as ‘repayable amounts’). The price at
which crude helium is sold by the Secretary shall not
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be less than the amount determined by the Secretary
by—
‘‘(1) dividing the outstanding amount of such
repayable amounts by the volume (in million cubic
feet) of crude helium owned by the United States
and stored in the Bureau of Mines Cliffside Field at
the time of the sale concerned, and
‘‘(2) adjusting the amount determined under
paragraph (1) by the Consumer Price Index for
years beginning after December 31, 1995.’’.
(d) Subsection 6(d) is amended to read as follows:
‘‘(d) EXTRACTION OF HELIUM FROM DEPOSITS ON
FEDERAL LANDS.—All moneys received by the Secretary
from the sale or disposition of helium on Federal lands
shall be paid to the Treasury and credited against the
amounts required to be repaid to the Treasury under sub-
section (c).’’.
(e) Subsection 6(e) is repealed.
(f) Subsection 6(f) is amended—
(1) by striking ‘‘(f)’’ and inserting ‘‘(e)(1)’’;
and
(2) by adding the following at the end:
‘‘(2)(A) Within 7 days after the commencement of
each fiscal year after the disposal of the facilities referred
to in section 4(c), all amounts in such fund in excess of
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$2,000,000 (or such lesser sum as the Secretary deems
necessary to carry out this Act during such fiscal year)
shall be paid to the Treasury and credited as provided in
paragraph (1).
‘‘(B) On repayment of all amounts referred to in sub-
section (c), the fund established under this section shall
be terminated and all moneys received under this Act shall
be deposited in the general fund of the Treasury.’’.
SEC. 5315. ELIMINATION OF STOCKPILE.
Section 8 is amended to read as follows:
‘‘SEC. 8. ELIMINATION OF STOCKPILE.
‘‘(a) STOCKPILE SALES.—
‘‘(1) COMMENCEMENT.—Not later than Janu-
ary 1, 2005, the Secretary shall commence offering
for sale crude helium from helium reserves owned by
the United States in such amounts as would be nec-
essary to dispose of all such helium reserves in ex-
cess of 600,000,000 cubic feet on a straight-line
basis between such date and January 1, 2015.
‘‘(2) TIMES OF SALE.—The sales shall be at
such times during each year and in such lots as the
Secretary determines, in consultation with the he-
lium industry, to be necessary to carry out this sub-
section with minimum market disruption.
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‘‘(3) PRICE.—The price for all sales under
paragraph (1), as determined by the Secretary in
consultation with the helium industry, shall be such
price as will ensure repayment of the amounts re-
quired to be repaid to the Treasury under section
6(c).
‘‘(b) DISCOVERY OF ADDITIONAL RESERVES.—The
discovery of additional helium reserves shall not affect the
duty of the Secretary to make sales of helium under sub-
section (a).’’.
SEC. 5316. REPEAL OF AUTHORITY TO BORROW.
Sections 12 and 15 are repealed.
SEC. 5317. LAND CONVEYANCE IN POTTER COUNTY, TEXAS.
(a) IN GENERAL.—The Secretary of the Interior shall
transfer all right, title, and interest of the United States
in and to the parcel of land described in subsection (b)
to the Texas Plains Girl Scout Council for consideration
of $1, reserving to the United States such easements as
may be necessary for pipeline rights-of-way.
(b) LAND DESCRIPTION.—The parcel of land re-
ferred to in subsection (a) is all those certain lots, tracts
or parcels of land lying and being situated in the County
of Potter and State of Texas, and being the East Three
Hundred Thirty-One (E331) acres out of Section Seventy-
eight (78) in Block Nine (9), B.S. & F. Survey, (some
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times known as the G.D. Landis pasture) Potter County,
Texas, located by certificate No. 1/39 and evidenced by
letters patents Nos. 411 and 412 issued by the State of
Texas under date of November 23, 1937, and of record
in Vol. 66A of the Patent Records of the State of Texas.
The metes and bounds description of such lands is as fol-
lows:
(1) FIRST TRACT.—One Hundred Seventy-one
(171) acres of land known as the North part of the
East part of said survey Seventy-eight (78) afore-
said, described by metes and bounds as follows:
Beginning at a stone 20 x 12 x 3 inches
marked X, set by W.D. Twichell in 1905, for the
Northeast corner of this survey and the Northwest
corner of Section 59;
Thence, South 0 degrees 12 minutes East with
the West line of said Section 59, 999.4 varas to the
Northeast corner of the South 160 acres of East
half of Section 78;
Thence, North 89 degrees 47 minutes West
with the North line of the South 150 acres of the
East half, 956.8 varas to a point in the East line
of the West half Section 78;
Thence, North 0 degrees 10 minutes West with
the East line of the West half 999.4 varas to a stone
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18 x 14 x 3 inches in the middle of the South line
of Section 79;
Thence, South 89 degrees 47 minutes East 965
varas to the place of beginning.
(2) SECOND TRACT.—One Hundred Sixty (160)
acres of land known as the South part of the East
part of said survey No. Seventy-eight (78) described
by metes and bounds as follows:
Beginning at the Southwest corner of Section
59, a stone marked X and a pile of stones; Thence,
North 89 degrees 47 minutes West with the North
line of Section 77, 966.5 varas to the Southeast cor-
ner of the West half of Section 78; Thence, North
0 degrees 10 minutes West with the East line of the
West half of Section 78;
Thence, South 89 degrees 47 minutes East
965.8 varas to a point in the East line of Section
78;
Thence, South 0 degrees 12 minutes East
934.6 varas to the place of beginning.
Containing an area of 331 acres, more or less.
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CHAPTER 8—OUTER CONTINENTAL SHELF
DEEP WATER ROYALTY RELIEF
SEC. 5421. SHORT TITLE.
This chapter may be referred to as the ‘‘Outer Con-
tinental Shelf Deep Water Royalty Relief Act’’.
SEC. 5422. AMENDMENTS TO THE OUTER CONTINENTAL
SHELF LANDS ACT.
Section 8(a)(3) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1337(a)(3)), is amended—
(1) by designating the provisions of paragraph
(3) as subparagraph (A) of such paragraph (3); and
(2) by inserting after subparagraph (A), as so
designated, the following:
‘‘(B) In the Western and Central Planning
Areas of the Gulf of Mexico and the portion of
the Eastern Planning Area of the Gulf of Mex-
ico encompassing whole lease blocks lying west
of 87 degrees, 30 minutes West longitude, the
Secretary may, in order to—
‘‘(i) promote development or increased
production on producing or non-producing
leases; or
‘‘(ii) encourage production of mar-
ginal resources on producing or non-pro-
ducing leases;
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through primary, secondary, or tertiary recov-
ery means, reduce or eliminate any royalty or
net profit share set forth in the lease(s). With
the lessee’s consent, the Secretary may make
other modifications to the royalty or net profit
share terms of the lease in order to achieve
these purposes.
‘‘(C)(i) Notwithstanding the provisions of
this Act other than this subparagraph, with re-
spect to any lease or unit in existence on the
date of enactment of the Outer Continental
Shelf Deep Water Royalty Relief Act meeting
the requirements of this subparagraph, no roy-
alty payments shall be due on new production,
as defined in clause (iv) of this subparagraph,
from any lease or unit located in water depths
of 200 meters or greater in the Western and
Central Planning Areas of the Gulf of Mexico,
including that portion of the Eastern Planning
Area of the Gulf of Mexico encompassing whole
lease blocks lying west of 87 degrees, 30 min-
utes West longitude, until such volume of pro-
duction as determined pursuant to clause (ii)
has been produced by the lessee.
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‘‘(ii) Upon submission of a complete appli-
cation by the lessee, the Secretary shall deter-
mine within 180 days of such application
whether new production from such lease or unit
would be economic in the absence of the relief
from the requirement to pay royalties provided
for by clause (i) of this subparagraph. In mak-
ing such determination, the Secretary shall con-
sider the increased technological and financial
risk of deep water development and all costs as-
sociated with exploring, developing, and produc-
ing from the lease. The lessee shall provide in-
formation required for a complete application to
the Secretary prior to such determination. The
Secretary shall clearly define the information
required for a complete application under this
section. Such application may be made on the
basis of an individual lease or unit. If the Sec-
retary determines that such new production
would be economic in the absence of the relief
from the requirement to pay royalties provided
for by clause (i) of this subparagraph, the pro-
visions of clause (i) shall not apply to such pro-
duction. If the Secretary determines that such
new production would not be economic in the
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absence of the relief from the requirement to
pay royalties provided for by clause (i), the Sec-
retary must determine the volume of production
from the lease or unit on which no royalties
would be due in order to make such new pro-
duction economically viable; except that for new
production as defined in clause (iv)(I), in no
case will that volume be less than 17.5 million
barrels of oil equivalent in water depths of 200
to 400 meters, 52.5 million barrels of oil equiv-
alent in 400 to 800 meters of water, and 87.5
million barrels of oil equivalent in water depths
greater than 800 meters. Redetermination of
the applicability of clause (i) shall be under-
taken by the Secretary when requested by the
lessee prior to the commencement of the new
production and upon significant change in the
factors upon which the original determination
was made. The Secretary shall make such rede-
termination within 120 days of submission of a
complete application. The Secretary may extend
the time period for making any determination
or redetermination under this clause for 30
days, or longer if agreed to by the applicant, if
circumstances so warrant. The lessee shall be
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notified in writing of any determination or rede-
termination and the reasons for and assump-
tions used for such determination. Any deter-
mination or redetermination under this clause
shall be a final agency action. The Secretary’s
determination or redetermination shall be judi-
cially reviewable under section 10(a) of the Ad-
ministrative Procedure Act (5 U.S.C. 702), only
for actions filed within 30 days of the Sec-
retary’s determination or redetermination.
‘‘(iii) In the event that the Secretary fails
to make the determination or redetermination
called for in clause (ii) upon application by the
lessee within the time period, together with any
extension thereof, provided for by clause (ii), no
royalty payments shall be due on new produc-
tion as follows:
‘‘(I) For new production, as defined in
clause (iv)(I) of this subparagraph, no roy-
alty shall be due on such production ac-
cording to the schedule of minimum vol-
umes specified in clause (ii) of this sub-
paragraph.
‘‘(II) For new production, as defined
in clause (iv)(II) of this subparagraph, no
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royalty shall be due on such production for
one year following the start of such pro-
duction.
‘‘(iv) For purposes of this subparagraph,
the term ‘new production’ is—
‘‘(I) any production from a lease from
which no royalties are due on production,
other than test production, prior to the
date of enactment of the Outer Continental
Shelf Deep Water Royalty Relief Act; or
‘‘(II) any production resulting from
lease development activities pursuant to a
Development Operations Coordination Doc-
ument, or supplement thereto that would
expand production significantly beyond the
level anticipated in the Development Oper-
ations Coordination Document, approved
by the Secretary after the date of enact-
ment of the Outer Continental Shelf Deep
Water Royalty Relief Act.
‘‘(v) During the production of volumes de-
termined pursuant to clauses (ii) or (iii) of this
subparagraph, in any year during which the
arithmetic average of the closing prices on the
New York Mercantile Exchange for light sweet
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crude oil exceeds $28.00 per barrel, any produc-
tion of oil will be subject to royalties at the
lease stipulated royalty rate. Any production
subject to this clause shall be counted toward
the production volume determined pursuant to
clauses (ii) or (iii). Estimated royalty payments
will be made if such average of the closing
prices for the previous year exceeds $28.00.
After the end of the calendar year, when the
new average price can be calculated, lessees will
pay any royalties due, with interest but without
penalty, or can apply for a refund, with inter-
est, of any overpayment.
‘‘(vi) During the production of volumes de-
termined pursuant to clause (ii) or (iii) of this
subparagraph, in any year during which the
arithmetic average of the closing prices on the
New York Mercantile Exchange for natural gas
exceeds $3.50 per million British thermal units,
any production of natural gas will be subject to
royalties at the lease stipulated royalty rate.
Any production subject to this clause shall be
counted toward the production volume deter-
mined pursuant to clauses (ii) or (iii). Esti-
mated royalty payments will be made if such
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average of the closing prices for the previous
year exceeds $3.50. After the end of the cal-
endar year, when the new average price can be
calculated, lessees will pay any royalties due,
with interest but without penalty, or can apply
for a refund, with interest, of any overpayment.
‘‘(vii) The prices referred to in clauses (v)
and (vi) of this subparagraph shall be changed
during any calendar year after 1994 by the per-
centage, if any, by which the implicit price
deflator for the gross domestic product changed
during the preceding calendar year.’’.
SEC. 5423. NEW LEASES.
Section 8(a)(1) of the Outer Continental Shelf Lands
Act, as amended (43 U.S.C. 1337(a)(1)), is amended—
(1) by redesignating subparagraph (H) as sub-
paragraph (I);
(2) by striking ‘‘or’’ at the end of subparagraph
(G); and
(3) by inserting after subparagraph (G) the fol-
lowing new subparagraph:
‘‘(H) cash bonus bid with royalty at no less
than 12 and 1/2 per centum fixed by the Sec-
retary in amount or value of production saved,
removed, or sold, and with suspension of royal-
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ties for a period, volume, or value of production
determined by the Secretary, which suspensions
may vary based on the price of production from
the lease; or’’.
SEC. 5424. LEASE SALES.
For all tracts located in water depths of 200 meters
or greater in the Western and Central Planning Area of
the Gulf of Mexico, including that portion of the Eastern
Planning Area of the Gulf of Mexico encompassing whole
lease blocks lying west of 87 degrees, 30 minutes West
longitude, any lease sale within seven years of the date
of enactment of this chapter, shall use the bidding system
authorized in section 8(a)(1)(H) of the Outer Continental
Shelf Lands Act, as amended by this chapter, except that
the suspension of royalties shall be set at a volume of not
less than the following:
(1) 17.5 million barrels of oil equivalent for
leases in water depths of 200 to 400 meters;
(2) 52.5 million barrels of oil equivalent for
leases in 400 to 800 meters of water; and
(3) 87.5 million barrels of oil equivalent for
leases in water depths greater than 800 meters.
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SEC. 5425. REGULATIONS.
The Secretary shall promulgate such rules and regu-
lations as are necessary to implement the provisions of this
chapter within 180 days after the enactment of this Act.
SEC. 5426. SAVINGS CLAUSE.
Nothing in this chapter shall be construed to affect
any offshore pre-leasing, leasing, or development morato-
rium, including any moratorium applicable to the Eastern
Planning Area of the Gulf of Mexico located off the Gulf
Coast of Florida.
Subtitle C—GSA Property Sales
SEC. 6021. SALE OF GOVERNORS ISLAND, NEW YORK.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the Administrator of General Services shall
dispose of by sale at fair market value all rights, title, and
interests of the United States in and to the land of, and
improvements to, Governors Island, New York.
(b) RIGHT OF FIRST REFUSAL.—Before a sale is
made under subsection (a) to any other parties, the State
of New York and the city of New York shall be given the
right of first refusal to purchase all or part of Governors
Island. Such right may be exercised by either the State
of New York or the city of New York or by both parties
acting jointly.
(c) PROCEEDS.—Proceeds from the disposal of Gov-
ernors Island under subsection (a) shall be deposited in
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the general fund of the Treasury and credited as mis-
cellaneous receipts.
SEC. 6022. SALE OF AIR RIGHTS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the Administrator of General Services shall
sell, at fair market value and in a manner to be deter-
mined by the Administrator, the air rights adjacent to
Washington Union Station described in subsection (b), in-
cluding air rights conveyed to the Administrator under
subsection (d). The Administrator shall complete the sale
by such date as is necessary to ensure that the proceeds
from the sale will be deposited in accordance with sub-
section (c).
(b) DESCRIPTION.—The air rights referred to in sub-
section (a) total approximately 16.5 acres and are depicted
on the plat map of the District of Columbia as follows:
(1) Part of lot 172, square 720.
(2) Part of lots 172 and 823, square 720.
(3) Part of lot 811, square 717.
(c) PROCEEDS.—Before September 30, 1996, pro-
ceeds from the sale of air rights under subsection (a) shall
be deposited in the general fund of the Treasury and cred-
ited as miscellaneous receipts.
(d) CONVEYANCE OF AMTRAK AIR RIGHTS.—
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(1) GENERAL RULE.—As a condition of future
Federal financial assistance, Amtrak shall convey to
the Administrator of General Services on or before
December 31, 1995, at no charge, all of the air
rights of Amtrak described in subsection (b).
(2) FAILURE TO COMPLY.—If Amtrak does not
meet the condition established by paragraph (1),
Amtrak shall be prohibited from obligating Federal
funds after March 1, 1996.
TITLE V—ENERGY AND NATURAL RESOURCES
PROVISIONS
Subtitle A—Nuclear Regulatory Commission Annual
Charges
SEC. 5001. NUCLEAR REGULATORY COMMISSION ANNUAL
CHARGES.
Section 6101(a)(3) of the Omnibus Budget Reconcili-
ation Act of 1990 (42 U.S.C. 2214(a)(3)) is amended by
striking ‘‘September 30, 1998’’ and inserting ‘‘September
30, 2002’’.
Subtitle B—Department of Energy Assets
CHAPTER 1—UNITED STATES
ENRICHMENT CORPORATION
SEC. 5410. HETCH HETCHY DAM.
Section 7 of the Act of December 13, 1913 (38 Stat.
242), is amended—
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(1) By striking ‘‘pay the sum of $30,000’’ and
all that follows in the first sentence and inserting
‘‘pay an amount determined annually by the Sec-
retary in accordance with the formula used by the
Federal Energy Regulatory Commission for applica-
tion to licenses of hydroelectric projects under the
Federal Power Act (16 U.S.C. 791 et seq.), provided
that, in no event shall such amount be less than
$597,000.00. Said amount to be paid on the first
day of July of each year.’’.
(2) By amending the second and third sen-
tences to read as follows: ‘‘These funds shall be
placed in a separate fund by the United States and,
notwithstanding any other provision of law, shall not
be available for obligation or expenditure until ap-
propriated by Congress. The highest priority use of
the funds shall be for annual operation of Yosemite
National Park, with the remainder of any funds to
be used to fund operations of other national parks
in the State of California.’’.
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CHAPTER 7—POWER MARKETING
ADMINISTRATIONS
Subchapter A—Bonneville Power
Administration Refinancing
SEC. 5401. DEFINITIONS.
For the purposes of this subchapter—
(1) ‘‘Administrator’’ means the Administrator
of the Bonneville Power Administration;
(2) ‘‘capital investment’’ means a capitalized
cost funded by Federal appropriations that—
(A) is for a project, facility, or separable
unit or feature of a project or facility;
(B) is a cost for which the Administrator
is required by law to establish rates to repay to
the United States Treasury through the sale of
electric power, transmission, or other services;
(C) excludes a Federal irrigation invest-
ment; and
(D) excludes an investment financed by the
current revenues of the Administrator or by
bonds issued and sold, or authorized to be is-
sued and sold, by the Administrator under sec-
tion 13 of the Federal Columbia River Trans-
mission System Act (16 U.S.C. 838k);
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(3) ‘‘new capital investment’’ means a capital
investment for a project, facility, or separable unit
or feature of a project, facility, or separable unit or
feature of a project or facility, placed in service after
September 30, 1995;
(4) ‘‘old capital investment’’ means a capital in-
vestment the capitalized cost of which—
(A) was incurred, but not repaid, before
October 1, 1995, and
(B) was for a project, facility, or separable
unit or feature of a project or facility, placed in
service before October 1, 1995;
(5) ‘‘repayment date’’ means the end of the pe-
riod within which the Administrator’s rates are to
assure the repayment of the principal amount of a
capital investment; and
(6) ‘‘Treasury rate’’ means—
(A) for an old capital investment, a rate
determined by the Secretary of the Treasury,
taking into consideration prevailing market
yields, during the month preceding October 1,
1995, on outstanding interest-bearing obliga-
tions of the United States with periods to matu-
rity comparable to the period between October
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1, 1995, and the repayment date for the old
capital investment; and
(B) for a new capital investment, a rate
determined by the Secretary of the Treasury,
taking into consideration prevailing market
yields, during the month preceding the begin-
ning of the fiscal year in which the related
project, facility, or separable unit or feature is
placed in service, on outstanding interest-bear-
ing obligations of the United States with peri-
ods to maturity comparable to the period be-
tween the beginning of the fiscal year and the
repayment date for the new capital investment.
SEC. 5402. NEW PRINCIPAL AMOUNTS.
(a) PRINCIPAL AMOUNT.—Effective October 1, 1995,
an old capital investment has a new principal amount that
is the sum of—
(1) the present value of the old payment
amounts for the old capital investment, calculated
using a discount rate equal to the Treasury rate for
the old capital investment; and
(2) an amount equal to $100,000,000 multi-
plied by a fraction the numerator of which is the
principal amount of the old payment amounts for
the old capital investment and the denominator of
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which is the sum of the principal amounts of the old
payment amounts for all old capital investments.
(b) DETERMINATION.—With the approval of the Sec-
retary of the Treasury, based solely on consistency with
this subchapter, the Administrator shall determine the
new principal amounts under this section and the assign-
ment of interest rates to the new principal amounts under
section 5403.
(c) OLD PAYMENT AMOUNT.—For the purposes of
this section, ‘‘old payment amounts’’ means, for an old
capital investment, the annual interest and principal that
the Administrator would have paid to the United States
Treasury from October 1, 1995, if this subchapter had
not been enacted, assuming that—
(1) the principal were repaid—
(A) on the repayment date the Adminis-
trator assigned before October 1, 1993, to the
old capital investment, or
(B) with respect to an old capital invest-
ment for which the Administrator has not as-
signed a repayment date before October 1,
1993, on a repayment date the Administrator
shall assign to the old capital investment in ac-
cordance with paragraph 10(d)(1) of the ver-
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sion of Department of Energy Order RA
6120.2 in effect on October 1, 1993; and
(2) interest were paid—
(A) at the interest rate the Administrator
assigned before October 1, 1993, to the old cap-
ital investment, or
(B) with respect to an old capital invest-
ment for which the Administrator has not as-
signed an interest rate before October 1, 1993,
at a rate determined by the Secretary of the
Treasury, taking into consideration prevailing
market yields, during the month preceding the
beginning of the fiscal year in which the related
project, facility, or separable unit or feature is
placed in service, on outstanding interest-bear-
ing obligations of the United States with peri-
ods to maturity comparable to the period be-
tween the beginning of the fiscal year and the
repayment date for the old capital investment.
SEC. 5403. INTEREST RATE FOR NEW PRINCIPAL AMOUNTS.
As of October 1, 1995, the unpaid balance on the
new principal amount established for an old capital invest-
ment under section 5402 bears interest annually at the
Treasury rate for the old capital investment until the ear-
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lier of the date that the new principal amount is repaid
or the repayment date for the new principal amount.
SEC. 5404. REPAYMENT DATES.
As of October 1, 1995, the repayment date for the
new principal amount established for an old capital invest-
ment under section 5402 is no earlier than the repayment
date for the old capital investment assumed in section
5402(c)(1).
SEC. 5405. PREPAYMENT LIMITATIONS.
During the period October 1, 1995, through Septem-
ber 30, 2000, the total new principal amounts of old cap-
ital investments, as established under section 5402, that
the Administrator may pay before their respective repay-
ment dates shall not exceed $100,000,000.
SEC. 5406. INTEREST RATES FOR NEW CAPITAL INVEST-
MENTS DURING CONSTRUCTION.
(a) NEW
CAPITAL
INVESTMENT.—The principal
amount of a new capital investment includes interest in
each fiscal year of construction of the related project, facil-
ity, or separable unit or feature at a rate equal to the
one-year rate for the fiscal year on the sum of—
(1) construction expenditures that were made
from the date construction commenced through the
end of the fiscal year, and
(2) accrued interest during construction.
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(b) PAYMENT.—The Administrator is not required to
pay, during construction of the project, facility, or sepa-
rable unit or feature, the interest calculated, accrued, and
capitalized under subsection (a).
(c) ONE-YEAR RATE.—For the purposes of this sec-
tion, ‘‘one-year rate’’ for a fiscal year means a rate deter-
mined by the Secretary of the Treasury, taking into con-
sideration prevailing market yields, during the month pre-
ceding the beginning of the fiscal year, on outstanding in-
terest-bearing obligations of the United States with peri-
ods to maturity of approximately one year.
SEC. 5407. INTEREST RATES FOR NEW CAPITAL INVEST-
MENTS.
The unpaid balance on the principal amount of a new
capital investment bears interest at the Treasury rate for
the new capital investment from the date the related
project, facility, or separable unit or feature is placed in
service until the earlier of the date the new capital invest-
ment is repaid or the repayment date for the new capital
investment.
SEC. 5408. CREDITS TO ADMINISTRATOR’S PAYMENTS TO
THE UNITED STATES TREASURY.
The Confederated Tribe of the Colville Reservation
Grand Coulee Dam Settlement Act (Public Law 103–436;
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108 Stat. 4577) is amended by striking section 6 and in-
serting the following:
‘‘SEC. 6. CREDITS TO ADMINISTRATOR’S PAYMENTS TO THE
UNITED STATES TREASURY.
‘‘So long as the Administrator makes annual pay-
ments to the tribes under the settlement agreement, the
Administrator shall apply against amounts otherwise pay-
able by the Administrator to the United States Treasury
a credit that reduces the Administrator’s payment in the
amount and for each fiscal year as follows: $15,250,000
in fiscal year 1996; $15,860,000 in fiscal year 1997;
$16,490,000 in fiscal year 1998; $17,150,000 in fiscal
year 1999; $17,840,000 in fiscal year 2000; and
$4,100,000 in each succeeding fiscal year.’’.
SEC. 5409. CONTRACT PROVISIONS.
In each contract of the Administrator that provides
for the Administrator to sell electric power, transmission,
or related services, and that is in effect after September
30, 1995, the Administrator shall offer to include, or as
the case may be, shall offer to amend to include, provisions
specifying that after September 30, 1995—
(1) the Administrator shall establish rates and
charges on the basis that—
(A) the principal amount of an old capital
investment shall be no greater than the new
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principal amount established under section
5402;
(B) the interest rate applicable to the un-
paid balance of the new principal amount of an
old capital investment shall be no greater than
the interest rate established under section
5403;
(C) any payment of principal of an old
capital investment shall reduce the outstanding
principal balance of the old capital investment
in the amount of the payment at the time the
payment is tendered; and
(D) any payment of interest on the unpaid
balance of the new principal amount of an old
capital investment shall be a credit against the
appropriate interest account in the amount of
the payment at the time the payment is ten-
dered;
(2) apart from charges necessary to repay the
new principal amount of an old capital investment as
established under section 5402 and to pay the inter-
est on the principal amount under section 5403, no
amount may be charged for return to the United
States Treasury as repayment for or return on an
old capital investment, whether by way of rate, rent,
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lease payment, assessment, user charge, or any other
fee;
(3) amounts provided under section 1304 of
title 31, United States Code, shall be available to
pay, and shall be the sole source for payment of, a
judgment against or settlement by the Administrator
or the United States on a claim for a breach of the
contract provisions required by this subchapter; and
(4) the contract provisions specified in this sub-
chapter do not—
(A) preclude the Administrator from recov-
ering, through rates or other means, any tax
that is generally imposed on electric utilities in
the United States, or
(B) affect the Administrator’s authority
under applicable law, including section 7(g) of
the Pacific Northwest Electric Power Planning
and Conservation Act (16 U.S.C. 839e(g)), to—
(i) allocate costs and benefits, includ-
ing but not limited to fish and wildlife
costs, to rates or resources, or
(ii) design rates.
SEC. 5410. SAVINGS PROVISIONS.
(a) REPAYMENT.—This subchapter does not affect
the obligation of the Administrator to repay the principal
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associated with each capital investment, and to pay inter-
est on the principal, only from the ‘‘Administrator’s net
proceeds,’’ as defined in section 13(b) of the Federal Co-
lumbia River Transmission System Act (16 U.S.C.
838k(b)).
(b) PAYMENT OF CAPITAL INVESTMENT.—Except as
provided in section 5405, this subchapter does not affect
the authority of the Administrator to pay all or a portion
of the principal amount associated with a capital invest-
ment before the repayment date for the principal amount.
Subchapter B—Alaska Power Marketing
Administration Sale
SEC. 5411. SHORT TITLE.
This subchapter may be cited as the ‘‘Alaska Power
Administration Asset Sale and Termination Act’’.
SEC. 5412. DEFINITIONS.
For purposes of this subchapter:
(1) The term ‘‘Eklutna’’ means Eklutna Hydro-
electric Project and related assets as described in
section 4 and Exhibit A of the Eklutna Purchase
Agreement.
(2) The term ‘‘Eklutna Purchase Agreement’’
means the August 2, 1989, Eklutna Purchase
Agreement between the Alaska Power Administra-
tion of the Department of Energy and the Eklutna
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Purchasers, together with any amendments thereto
adopted before the date of enactment of this Act.
(3) The term ‘‘Eklutna Purchasers’’ means the
Municipality of Anchorage doing business as Munici-
pal Light and Power, the Chugach Electric Associa-
tion, Inc. and the Matanuska Electric Association,
Inc.
(4) 
The 
term 
‘‘Snettisham’’ 
means 
the
Snettisham Hydroelectric Project and related assets
as described in section 4 and Exhibit A of the
Snettisham Purchase Agreement.
(5) The term ‘‘Snettisham Purchase Agree-
ment’’ means the February 10, 1989, Snettisham
Purchase Agreement between the Alaska Power Ad-
ministration of the Department of Energy and the
Alaska Power Authority and its successors in inter-
est, together with any amendments thereto adopted
before the date of enactment of this Act.
(6) The term ‘‘Snettisham Purchaser’’ means
the Alaska Industrial Development and Export Au-
thority or a successor State agency or authority.
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SEC. 5413. SALE OF EKLUTNA AND SNETTISHAM HYDRO-
ELECTRIC PROJECTS.
CHAPTER 11—PARK ENTRANCE FEES
SEC. 5451. FEES.
(a) ADMISSION FEES.—Section 4(a) of the Land and
Water Conservation Fund Act of 1965 (16 U.S.C. 460l–
6a(a)) is amended—
(1) in the first sentence of the subsection by
striking ‘‘no more than 21’’;
(2) in the first sentence of paragraph (1)(A)(i)
by striking ‘‘$25’’ and inserting ‘‘$50’’;
(3) in the second sentence of paragraph (1)(B)
by striking ‘‘$15’’ and inserting ‘‘$25’’;
(4) in paragraph (2) by striking the fourth,
fifth, and sixth sentences and inserting ‘‘The fee for
a single-visit permit at any designated area shall be
collected on a per person basis, not to exceed $6 per
person, including for persons entering by private,
noncommercial vehicle.’’;
(5) in paragraph (3)—
(A) in the third sentence by inserting
‘‘Great’’ before ‘‘Smoky’’; and
(B) by striking the last sentence;
(6) in paragraph (4)—
(A) by striking the second sentence and in-
serting ‘‘Such permit shall be nontransferable,
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shall be issued for a one-time charge, which
shall be set at the same rate as the fee for a
Golden Eagle Passport, and shall entitle the
permittee to free admission into any area des-
ignated pursuant to this subsection.’’; and
(B) by striking the third sentence and in-
serting ‘‘No fees of any kind shall be collected
from any persons who have a right of access for
hunting or fishing privileges under a specific
provision of law or treaty or who are engaged
in the conduct of official Federal, State, or local
government business.’’;
(7) by striking paragraph (5) and inserting the
following:
‘‘(5) The Secretary of the Interior and the Sec-
retary of Agriculture shall establish procedures pro-
viding for the issuance of a lifetime admission per-
mit to any citizen of, or person legally domiciled in,
the United States, if such citizen or person applies
for such permit and is permanently disabled. Such
procedures shall ensure that a lifetime admission
permit shall be issued only to persons who have been
medically determined to be permanently disabled. A
lifetime admission permit shall be nontransferable,
shall be issued without charge, and shall entitle the
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permittee and one accompanying individual to gen-
eral admission into any area designated pursuant to
this subsection, notwithstanding the method of trav-
el.’’;
(8) by striking paragraph (9) and by redesig-
nating paragraph (10) as paragraph (9)’’;
(9) by striking all but the last sentence of para-
graph (11) and redesignating paragraph (11) as
paragraph (10); and
(10) by redesignating paragraph (12) as para-
graph (11).
(b) RECREATION FEES.—Section 4 of the Land and
Water Conservation Fund Act of 1965 (16 U.S.C. 460l–
6a) is amended by striking subsection (b) and inserting
the following:
‘‘(b) RECREATION USE FEES.—Each agency develop-
ing, administering, providing, or furnishing at Federal ex-
pense services for such activities as camping, including,
but not limited to, back country camping under permit,
guarded swimming sites, boat launch facilities, managed
parking lots, motorized recreation use and other recreation
uses, is authorized, in accordance with this section to pro-
vide for the collection of recreation use fees at the place
of use or any reasonably convenient location. The admin-
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istering Secretary may establish both daily and annual
recreation use fees.’’.
(c) CRITERIA, POSTING
AND
UNIFORMITY
OF
FEES.—Section 4(d) of the Land and Water Conservation
Fund Act of 1965 (16 U.S.C. 460l–6a(d)) is amended in
the first sentence by striking ‘‘recreation fees charged by
non-Federal public agencies,’’ and inserting ‘‘fees charged
by other public and private entities,’’.
(d) PENALTY.—Section 4(e) of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 460l–6a(e))
is amended by striking ‘‘of not more than $100.’’ and in-
serting ‘‘as provided by law.’’.
(e) TECHNICAL AMENDMENTS.—Section 4(h) of the
Land and Water Conservation Fund Act of 1965 (16
U.S.C. 460l–6a(h)) is amended—
(1) by striking ‘‘Bureau of Outdoor Recreation’’
and inserting ‘‘National Park Service’’;
(2) by striking ‘‘Natural Resources’’ and insert-
ing ‘‘Resources’’; and
(3) by striking ‘‘Bureau’’ and inserting ‘‘Na-
tional Park Service’’.
(f) USE OF FEES.—Section 4(i) of the Land and
Water Conservation Fund Act of 1965 (16 U.S.C. 460l–
6a(i)) is amended—
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(1) in the first sentence of paragraph (1)(B) by
striking ‘‘fee collection costs for that fiscal year’’
and inserting ‘‘fee collection costs for the imme-
diately preceding fiscal year’’ and by striking ‘‘sec-
tion in that fiscal year’’ and inserting ‘‘section in
such immediately preceding fiscal year’’;
(2) in the second sentence of subparagraph (B)
by striking ‘‘in that fiscal year’’; and
(3) by striking paragraph (4) and inserting the
following:
‘‘(4) Amounts covered into the special account
for the National Park Service shall be allocated
among park system units in accordance with sub-
section (j) for obligation or expenditure by the Di-
rector of the National Park Service for park oper-
ations.’’.
(g) TIME OF REIMBURSEMENT.—Section 4(k) of the
Land and Water Conservation Fund Act of 1965 (16
U.S.C. 460l–6a(k)) is amended by striking the last sen-
tence.
(h) COMMERCIAL TOUR USE FEES.—Section 4(n) of
the Land and Water Conservation Fund Act of 1965 (16
U.S.C. 460l–6a(n)) is amended—
(1) by striking the first sentence of paragraph
(1) and inserting ‘‘In the case of each unit of the
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National Park System for which an admission fee is
charged under this section, the Secretary of the In-
terior shall establish, by October 1, 1996, a commer-
cial tour use fee in lieu of a per person admission
fee to be imposed on each vehicle entering the unit
for the purpose of providing commercial tour serv-
ices within the unit.’’; and
(2) by striking the period at the end of para-
graph (3) and inserting ‘‘, with written notification
of such adjustments provided to commercial tour op-
erators 12 months in advance of implementation.’’.
(i) CONFORMING AMENDMENTS.—
(1) Title I of the Department of the Interior
and Related Agencies Appropriations Act, 1994, is
amended by striking the second proviso under the
heading ‘‘ADMINISTRATIVE PROVISIONS’’ under the
heading ‘‘NATIONAL PARK SERVICE’’ (related to re-
covery of costs associated with special use permits).
(2) Section 3 of the Act entitled ‘‘An Act creat-
ing the Mount Rushmore National Memorial Com-
mission and defining its purposes and powers’’, ap-
proved February 25, 1929 (45 Stat. 1300, chapter
315), is amended by striking the last sentence.
(3) Section 5 of Public Law 87–657 (16 U.S.C.
459c–5), is amended by striking subsection (e).
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(4) Section 3 of Public Law 87–750 (16 U.S.C.
398e) is amended by striking subsection (b).
(5) Section 4(e) of Public Law 92–589 (16
U.S.C. 460bb–3) is amended by striking the first
sentence.
(6) Section 6 of Public Law 95–348 (16 U.S.C.
410dd) is amended by striking subsection (j).
(7) Section 207 of Public Law 96–199 (16
U.S.C. 410ff–6) is repealed.
(8) Section 106 of Public Law 96–287 (16
U.S.C. 410gg–5) is amended by striking the last
sentence.
(9) Section 204 of Public Law 96–287 (94
Stat. 601) is amended by striking the last sentence.
(10) Section 5 of Public Law 96–428 (94 Stat.
1842; 16 U.S.C. 461 note) is repealed.
(11) Public Law 100–55 (101 Stat. 371; U.S.C.
460l–6a note) is repealed.
SEC. 5452. COVERING OF INCREASED FEE REVENUES INTO
SPECIAL ACCOUNTS.
Of the funds deposited in special accounts in the
Treasury for the National Park Service, Bureau of Land
Management, and Forest Service as set forth in section
4(i) of the Land and Water Conservation Fund Act of
1965 (16 U.S.C. 460l–6a(i)), beginning in fiscal year
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1997, 80 percent of all receipts earned in the previous year
in excess of the following amounts for each covered agency
shall be made available to that agency without further ap-
propriation:
(1) National Park System:
(A) $82,000,000 for fiscal year 1997.
(B) $85,000,000 for fiscal year 1998.
(C) $88,000,000 for fiscal year 1999.
(D) $91,000,000 for fiscal year 2000.
(E) $94,000,000 for fiscal year 2001.
(F) $97,000,000 for fiscal year 2002.
(G) $100,000,000 for fiscal year 2003.
(2) Bureau of Land Management:
(A) $4,500,000 for fiscal year 1997.
(B) $5,000,000 for fiscal year 1998.
(C) $5,000,000 for fiscal year 1999.
(D) $5,000,000 for fiscal year 2000.
(E) $5,000,000 for fiscal year 2001.
(F) $5,000,000 for fiscal year 2002.
(G) $5,000,000 for fiscal year 2003.
(3) Forest Service:
(A) $20,000,000 for fiscal year 1997.
(B) $20,600,000 for fiscal year 1998.
(C) $21,200,000 for fiscal year 1999.
(D) $21,900,000 for fiscal year 2000.
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(E) $22,500,000 for fiscal year 2001.
(F) $23,600,000 for fiscal year 2002.
(G) $24,300,000 for fiscal year 2003.
SEC. 5453. ALLOCATION AND USE OF FEES.
(a) ALLOCATION.—Beginning in fiscal year 1997, re-
ceipts above the amounts stated in section 5454 in each
covered agency’s special account from the previous fiscal
year shall be allocated as follows:
(1) Seventy-five percent shall be allocated
among the units or areas of each affected agency in
the same proportion as fees collected pursuant to
section 4 of the Land and Water Conservation Fund
Act of 1965 (16 U.S.C. 460l–6a) from a specific
unit or area bear to the total amount of such fees
collected from all units or areas of the same covered
agency for each fiscal year.
(2) Twenty-five percent shall be allocated
among each covered agency’s units or areas on the
basis of need, as determined by the Secretary.
(b) USE.—Expenditures from the special accounts
shall be used solely for infrastructure related to visitor use
and annual operating expenses related to visitor services
at units or areas of the covered agencies.