IB
Union Calendar No. 41
104TH CONGRESS
1ST SESSION
H. R. 1216
[Report No. 104–86]
To amend the Atomic Energy Act of 1954 to provide for the privatization
of the United States Enrichment Corporation.
IN THE HOUSE OF REPRESENTATIVES
MARCH 13, 1995
Mr. BLILEY introduced the following bill; which was referred to the Committee
on Commerce
MARCH 23, 1995
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on March 13, 1995]
A BILL
To amend the Atomic Energy Act of 1954 to provide for
the privatization of the United States Enrichment Cor-
poration.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND REFERENCE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘USEC Privatization Act’’.
(b) REFERENCE.—Except as otherwise expressly pro-
vided, whenever in this Act an amendment or repeal is ex-
pressed in terms of an amendment to, or repeal of, a section
or other provision, the reference shall be considered to be
made to a section or other provision of the Atomic Energy
Act of 1954 (42 U.S.C. 2011 et seq.).
SEC. 2. PRODUCTION FACILITY.
Paragraph v. of section 11 (42 U.S.C. 2014 v.) is
amended by striking ‘‘or the construction and operation of
a uranium enrichment production facility using Atomic
Vapor Laser Isotope Separation technology’’.
SEC. 3. DEFINITIONS.
Section 1201 (42 U.S.C. 2297) is amended—
(1) in paragraph (4), by inserting before the pe-
riod the following: ‘‘and any successor corporation es-
tablished through privatization of the Corporation’’;
(2) by redesignating paragraphs (10) through
(13) as paragraphs (14) through (17), respectively,
and by inserting after paragraph (9) the following
new paragraphs:
‘‘(10) The term ‘low-level radioactive waste’ has
the meaning given such term in section 102(9) of the
Low-Level Radioactive Waste Policy Amendments Act
of 1985 (42 U.S.C. 2021b(9)).
‘‘(11) The term ‘mixed waste’ has the meaning
given such term in section 1004(41) of the Solid
Waste Disposal Act (42 U.S.C. 6903(41)).
‘‘(12) The term ‘privatization’ means the trans-
fer of ownership of the Corporation to private inves-
tors pursuant to chapter 25.
‘‘(13) The term ‘privatization date’ means the
date on which 100 percent of ownership of the Cor-
poration has been transferred to private investors.’’;
(3) by inserting after paragraph (17) (as redes-
ignated) the following new paragraph:
‘‘(18) The term ‘transition date’ means July 1,
1993.’’; and
(4) by redesignating the unredesignated para-
graph (14) as paragraph (19).
SEC. 4. EMPLOYEES OF THE CORPORATION.
(a) PARAGRAPH (2).—Paragraphs (1) and (2) of sec-
tion 1305(e) (42 U.S.C. 2297b–4(e)(1)(2)) are amended to
read as follows:
‘‘(1) IN GENERAL.—It is the purpose of this sub-
section to ensure that the privatization of the Cor-
poration shall not result in any adverse effects on the
pension benefits of employees at facilities that are op-
erated, directly or under contract, in the performance
of the functions vested in the Corporation.
‘‘(2) APPLICABILITY
OF
EXISTING
COLLECTIVE
BARGAINING
AGREEMENT.—The Corporation shall
abide by the terms of the collective bargaining agree-
ment in effect on the privatization date at each indi-
vidual facility.’’.
(b) PARAGRAPH
(4).—Paragraph (4) of section
1305(e) (42 U.S.C. 2297b–4(e)(4)) is amended—
(1) by striking ‘‘AND DETAILEES’’ in the head-
ing;
(2) by striking the first sentence;
(3) in the second sentence, by inserting ‘‘from
other Federal employment’’ after ‘‘transfer to the Cor-
poration’’; and
(4) by striking the last sentence.
SEC. 5. MARKETING AND CONTRACTING AUTHORITY.
(a) MARKETING AUTHORITY.—Section 1401(a) (42
U.S.C. 2297c(a)) is amended effective on the privatization
date (as defined in section 1201(13) of the Atomic Energy
Act of 1954)—
(1) by amending the subsection heading to read
‘‘MARKETING AUTHORITY.—’’; and
(2) by striking the first sentence.
(b) TRANSFER OF CONTRACTS.—Section 1401(b) (42
U.S.C. 2297c(b)) is amended—
(1) in paragraph (2)(B), by adding at the end
the following: ‘‘The privatization of the Corporation
shall not affect the terms of, or the rights or obliga-
tions of the parties to, any such power purchase con-
tract.’’; and
(2) by adding at the end the following:
‘‘(3) EFFECT OF TRANSFER.—
‘‘(A) As a result of the transfer pursuant to
paragraph (1), all rights, privileges, and benefits
under such contracts, agreements, and leases, in-
cluding the right to amend, modify, extend, re-
vise, or terminate any of such contracts, agree-
ments, or leases were irrevocably assigned to the
Corporation for its exclusive benefit.
‘‘(B) Notwithstanding the transfer pursuant
to paragraph (1), the United States shall remain
obligated to the parties to the contracts, agree-
ments, and leases transferred pursuant to para-
graph (1) for the performance of the obligations
of the United States thereunder during the term
thereof. The Corporation shall reimburse the
United States for any amount paid by the
United States in respect of such obligations aris-
ing after the privatization date to the extent such
amount is a legal and valid obligation of the
Corporation then due.
‘‘(C) After the privatization date, upon any
material amendment, modification, extension, re-
vision, replacement, or termination of any con-
tract, agreement, or lease transferred under
paragraph (1), the United States shall be re-
leased from further obligation under such con-
tract, agreement, or lease, except that such action
shall not release the United States from obliga-
tions arising under such contract, agreement, or
lease prior to such time.’’.
(c) PRICING.—Section 1402 (42 U.S.C. 2297c–1) is
amended to read as follows:
‘‘SEC. 1402. PRICING.
‘‘The Corporation shall establish prices for its prod-
ucts, materials, and services provided to customers on a
basis that will allow it to attain the normal business objec-
tives of a profitmaking corporation.’’.
(d) LEASING OF GASEOUS DIFFUSION FACILITIES OF
DEPARTMENT.—Effective on the privatization date (as de-
fined in section 1201(13) of the Atomic Energy Act of
1954), section 1403 (42 U.S.C. 2297c–2) is amended by
adding at the end the following:
‘‘(h) LOW-LEVEL RADIOACTIVE WASTE AND MIXED
WASTE.—
‘‘(1) RESPONSIBILITY
OF
THE
DEPARTMENT;
COSTS.—
‘‘(A) With respect to low-level radioactive
waste and mixed waste generated by the Cor-
poration as a result of the operation of the facili-
ties and related property leased by the Corpora-
tion pursuant to subsection (a) or as a result of
treatment of such wastes at a location other than
the facilities and related property leased by the
Corporation pursuant to subsection (a) the De-
partment, at the request of the Corporation,
shall—
‘‘(i) accept for treatment or disposal of
all such wastes for which treatment or dis-
posal technologies and capacities exist,
whether within the Department or else-
where; and
‘‘(ii) accept for storage (or ultimately
treatment or disposal) all such wastes for
which treatment and disposal technologies
or capacities do not exist, pending develop-
ment of such technologies or availability of
such capacities for such wastes.
‘‘(B) All low-level wastes and mixed wastes
that the Department accepts for treatment, stor-
age, or disposal pursuant to subparagraph (A)
shall, for the purpose of any permits, licenses,
authorizations, agreements, or orders involving
the Department and other Federal agencies or
State or local governments, be deemed to be gen-
erated by the Department and the Department
shall handle such wastes in accordance with any
such permits, licenses, authorizations, agree-
ments, or orders. The Department shall obtain
any additional permits, licenses, or authoriza-
tions necessary to handle such wastes, shall
amend any such agreements or orders as nec-
essary to handle such wastes, and shall handle
such wastes in accordance therewith.
‘‘(C) The Corporation shall reimburse the
Department for the treatment, storage, or dis-
posal of low-level radioactive waste or mixed
waste pursuant to subparagraph (A) in an
amount equal to the Department’s costs but in
no event greater than an amount equal to that
which would be charged by commercial, State,
regional, or interstate compact entities for treat-
ment, storage, or disposal of such waste.
‘‘(2) AGREEMENTS WITH OTHER PERSONS.—The
Corporation may also enter into agreements for the
treatment, storage, or disposal of low-level radioactive
waste and mixed waste generated by the Corporation
as a result of the operation of the facilities and relat-
ed property leased by the Corporation pursuant to
subsection (a) with any person other than the Depart-
ment that is authorized by applicable laws and regu-
lations to treat, store, or dispose of such wastes.’’.
(e) LIABILITIES.—
(1) Subsection (a) of section 1406 (42 U.S.C.
2297c–5(a)) is amended—
(A) by inserting ‘‘AND
PRIVATIZATION’’
after ‘‘TRANSITION’’ in the heading; and
(B) by adding at the end the following: ‘‘As
of the privatization date, all liabilities attrib-
utable to the operation of the Corporation from
the transition date to the privatization date shall
be direct liabilities of the United States.’’.
(2) Subsection (b) of section 1406 (42 U.S.C.
2297c–5(b)) is amended—
(A) by inserting ‘‘AND
PRIVATIZATION’’
after ‘‘TRANSITION’’ in the heading; and
(B) by adding at the end the following: ‘‘As
of the privatization date, any judgment entered
against the Corporation imposing liability aris-
ing out of the operation of the Corporation from
the transition date to the privatization date shall
be considered a judgment against the United
States.’’.
(3) Subsection (d) of section 1406 (42 U.S.C.
2297c–5(d)) is amended—
(A) by inserting ‘‘AND
PRIVATIZATION’’
after ‘‘TRANSITION’’ in the heading; and
(B) by striking ‘‘the transition date’’ and
inserting ‘‘the privatization date (or, in the
event the privatization date does not occur, the
transition date)’’.
(f) TRANSFER OF URANIUM.—Title II (42 U.S.C. 2297
et seq.) is amended by redesignating section 1408 as section
1409 and by inserting after section 1407 the following:
‘‘SEC. 1408. TRANSFER OF URANIUM.
‘‘The Secretary may, before the privatization date,
transfer to the Corporation without charge raw uranium,
low-enriched uranium, and highly enriched uranium.’’.
SEC. 6. PRIVATIZATION OF THE CORPORATION.
(a) ESTABLISHMENT
OF PRIVATE CORPORATION.—
Chapter 25 (42 U.S.C. 2297d et seq.) is amended by adding
at the end the following new section:
‘‘SEC. 1503. ESTABLISHMENT OF PRIVATE CORPORATION.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—In order to facilitate privat-
ization, the Corporation may provide for the estab-
lishment of a private corporation organized under the
laws of any of the several States. Such corporation
shall have among its purposes the following:
‘‘(A) To help maintain a reliable and eco-
nomical domestic source of uranium enrichment
services.
‘‘(B) To undertake any and all activities as
provided in its corporate charter.
‘‘(2) AUTHORITIES.—The corporation established
pursuant to paragraph (1) shall be authorized to—
‘‘(A) enrich uranium, provide for uranium
to be enriched by others, or acquire enriched ura-
nium (including low-enriched uranium derived
from highly enriched uranium);
‘‘(B) conduct, or provide for conducting,
those research and development activities related
to uranium enrichment and related processes
and activities the corporation considers nec-
essary or advisable to maintain itself as a com-
mercial enterprise operating on a profitable and
efficient basis;
‘‘(C) enter into transactions regarding ura-
nium, enriched uranium, or depleted uranium
with—
‘‘(i) persons licensed under section 53,
63, 103, or 104 in accordance with the li-
censes held by those persons;
‘‘(ii) persons in accordance with, and
within the period of, an agreement for co-
operation arranged under section 123; or
‘‘(iii) persons otherwise authorized by
law to enter into such transactions;
‘‘(D) enter into contracts with persons li-
censed under section 53, 63, 103, or 104, for as
long as the corporation considers necessary or
desirable, to provide uranium or uranium en-
richment and related services;
‘‘(E) enter into contracts to provide ura-
nium or uranium enrichment and related serv-
ices in accordance with, and within the period
of, an agreement for cooperation arranged under
section 123 or as otherwise authorized by law;
and
‘‘(F) take any and all such other actions as
are permitted by the law of the jurisdiction of
incorporation of the corporation.
‘‘(3) TRANSFER
OF
ASSETS.—For purposes of
implementing the privatization, the Corporation may
transfer some or all of its assets and obligations to the
corporation established pursuant to this section, in-
cluding—
‘‘(A) all of the Corporation’s assets, includ-
ing all contracts, agreements, and leases, includ-
ing all uranium enrichment contracts and power
purchase contracts;
‘‘(B) all funds in accounts of the Corpora-
tion held by the Treasury or on deposit with any
bank or other financial institution;
‘‘(C) all of the Corporation’s rights, duties,
and obligations, accruing subsequent to the pri-
vatization date, under the power purchase con-
tracts covered by section 1401(b)(2)(B); and
‘‘(D) all of the Corporation’s rights, duties,
and obligations, accruing subsequent to the pri-
vatization date, under the lease agreement be-
tween the Department and the Corporation exe-
cuted by the Department and the Corporation
pursuant to section 1403.
‘‘(4) MERGER
OR
CONSOLIDATION.—For pur-
poses of implementing the privatization, the Corpora-
tion may merge or consolidate with the corporation
established pursuant to subsection (a)(1) if such ac-
tion is contemplated by the plan for privatization ap-
proved by the President under section 1502(b). The
Board shall have exclusive authority to approve such
merger or consolidation and to take all further ac-
tions necessary to consummate such merger or con-
solidation, and no action by or in respect of share-
holders shall be required. The merger or consolidation
shall be effected in accordance with, and have the ef-
fects of a merger or consolidation under, the laws of
the jurisdiction of incorporation of the surviving cor-
poration, and all rights and benefits provided under
this title to the Corporation shall apply to the surviv-
ing corporation as if it were the Corporation.
‘‘(5) TAX TREATMENT OF PRIVATIZATION.—
‘‘(A) TRANSFER OF ASSETS OR MERGER.—
No income, gain, or loss shall be recognized by
any person by reason of the transfer of the Cor-
poration’s assets to, or the Corporation’s merger
with, the corporation established pursuant to
subsection (a)(1) in connection with the privat-
ization.
‘‘(B) CANCELLATION OF DEBT AND COMMON
STOCK.—No income, gain, or loss shall be recog-
nized by any person by reason of any cancella-
tion of any obligation or common stock of the
Corporation in connection with the privatiza-
tion.
‘‘(b) OSHA REQUIREMENTS.—For purposes of the reg-
ulation of radiological and nonradiological hazards under
the Occupational Safety and Health Act of 1970, the cor-
poration established pursuant to subsection (a)(1) shall be
treated in the same manner as other employers licensed by
the Nuclear Regulatory Commission. Any interagency
agreement entered into between the Nuclear Regulatory
Commission and the Occupational Safety and Health Ad-
ministration governing the scope of their respective regu-
latory authorities shall apply to the corporation as if
the corporation were a Nuclear Regulatory Commission
licensee.
‘‘(c) LEGAL STATUS OF PRIVATE CORPORATION.—
‘‘(1) NOT
FEDERAL
AGENCY.—The corporation
established pursuant to subsection (a)(1) shall not be
an agency, instrumentality, or establishment of the
United States Government and shall not be a Govern-
ment corporation or Government-controlled corpora-
tion.
‘‘(2) NO RECOURSE AGAINST UNITED STATES.—
Obligations of the corporation established pursuant to
subsection (a)(1) shall not be obligations of, or guar-
anteed as to principal or interest by, the Corporation
or the United States, and the obligations shall so
plainly state.
‘‘(3) NO CLAIMS COURT JURISDICTION.—No ac-
tion under section 1491 of title 28, United States
Code, shall be allowable against the United States
based on the actions of the corporation established
pursuant to subsection (a)(1).
‘‘(d) BOARD OF DIRECTOR’S ELECTION AFTER PUBLIC
OFFERING.—In the event that the privatization is imple-
mented by means of a public offering, an election of the
members of the board of directors of the Corporation by the
shareholders shall be conducted before the end of the 1-year
period beginning the date shares are first offered to the pub-
lic pursuant to such public offering.
‘‘(e) ADEQUATE PROCEEDS.—The Secretary of Energy
shall not allow the privatization of the Corporation unless
before the sale date the Secretary determines that the esti-
mated sum of the gross proceeds from the sale of the Cor-
poration will be an adequate amount.’’.
(b) 
OWNERSHIP
LIMITATIONS.—Chapter 
(as
amended by subsection (a)) is amended by adding at the
end the following new section:
‘‘SEC. 1504. OWNERSHIP LIMITATIONS.
‘‘(a) SECURITIES LIMITATION.—In the event that the
privatization is implemented by means of a public offering,
during a period of 3 years beginning on the privatization
date, no person, directly or indirectly, may acquire or hold
securities representing more than 10 percent of the total
votes of all outstanding voting securities of the Corporation.
‘‘(b) APPLICATION.—Subsection (a) shall not apply—
‘‘(1) to any employee stock ownership plan of the
Corporation,
‘‘(2) to underwriting syndicates holding shares
for resale, or
‘‘(3) in the case of shares beneficially held for
others, to commercial banks, broker-dealers, clearing
corporations, or other nominees.
‘‘(c) No director, officer, or employee of the Corpora-
tion may acquire any securities, or any right to acquire
securities, of the Corporation—
‘‘(1) in the public offering of securities of the
Corporation in the implementation of the privatiza-
tion,
‘‘(2) pursuant to any agreement, arrangement,
or understanding entered into before the privatization
date, or
(d) RESOLUTION OF CERTAIN ISSUES.—Chapter 25
(as amended by subsection (c)) is amended by adding at
the end the following new section:
‘‘SEC. 1506. RESOLUTION OF CERTAIN ISSUES.
‘‘(a) CORPORATION ACTIONS.—Notwithstanding any
provision of any agreement to which the Corporation is a
party, the Corporation shall not be considered to be in
breach, default, or violation of any such agreement because
of any provision of this chapter or any action the Corpora-
tion is required to take under this chapter.
‘‘(b) RIGHT TO SUE WITHDRAWN.—The United States
hereby withdraws any stated or implied consent for the
United States, or any agent or officer of the United States,
to be sued by any person for any legal, equitable, or other
relief with respect to any claim arising out of, or resulting
from, acts or omissions under this chapter.’’.
(e) APPLICATION
OF PRIVATIZATION PROCEEDS.—
Chapter 25 (as amended by subsection (d)) is amended by
adding at the end the following new section:
‘‘SEC. 1507. APPLICATION OF PRIVATIZATION PROCEEDS.
‘‘The proceeds from the privatization shall be included
in the budget baseline required by the Balanced Budget and
Emergency Deficit Control Act of 1985 and shall be counted
as an offset to direct spending for purposes of section 252
of such Act, notwithstanding section 257(e) of such Act.’’.
(f) CONFORMING AMENDMENT.—The table of contents
for chapter 25 is amended by inserting after the item for
section 1502 the following:
‘‘Sec. 1503. Establishment of Private Corporation.
‘‘Sec. 1504. Ownership Limitations.
‘‘Sec. 1505. Exemption from Liability.
‘‘Sec. 1506. Resolution of Certain Issues.
‘‘Sec. 1507. Application of Privatization Proceeds.’’.
(g) Section 193 (42 U.S.C. 2243) is amended by add-
ing at the end the following:
‘‘(f) LIMITATION.—If the privatization of the United
States Enrichment Corporation results in the Corporation
being—
‘‘(1) owned, controlled, or dominated by a for-
eign corporation or a foreign government, or
‘‘(2) otherwise inimical to the common defense or
security of the United States,
any license held by the Corporation under sections 53 and
63 shall be terminated.’’.
(h) PERIOD FOR CONGRESSIONAL REVIEW.—Section
1502(d) (42 U.S.C. 2297d–1(d)) is amended by striking
‘‘less than 60 days after notification of the Congress’’ and
inserting ‘‘less than 60 days after the date of the report to
Congress by the Comptroller General under subsection (c)’’.
SEC. 7. PERIODIC CERTIFICATION OF COMPLIANCE.
Section 1701(c)(2) (42 U.S.C. 2297f(c)(2)) is amended
by striking ‘‘ANNUAL APPLICATION FOR CERTIFICATE OF
COMPLIANCE.—The Corporation shall apply at least annu-
ally to the Nuclear Regulatory Commission for a certificate
of compliance under paragraph (1).’’ and inserting ‘‘PERI-
ODIC APPLICATION FOR CERTIFICATE OF COMPLIANCE.—
The Corporation shall apply to the Nuclear Regulatory
Commission for a certificate of compliance under para-
graph (1) periodically, as determined by the Nuclear Regu-
latory Commission, but not less than every 5 years.’’.
SEC. 8. LICENSING OF OTHER TECHNOLOGIES.
Subsection (a) of section 1702 (42 U.S.C. 2297f–1(a))
is amended by striking ‘‘other than’’ and inserting ‘‘includ-
ing’’.
SEC. 9. CONFORMING AMENDMENTS.
(a) REPEALS IN ATOMIC ENERGY ACT OF 1954 AS OF
THE PRIVATIZATION DATE.—
(1) REPEALS.—As of the privatization date (as
defined in section 1201(13) of the Atomic Energy Act
of 1954), the following sections (as in effect on such
privatization date) of the Atomic Energy Act of 1954
are repealed:
(A) Section 1202.
(B) Sections 1301 through 1304.
(C) Sections 1306 through 1316.
(D) Sections 1404 and 1405.
(E) Section 1601.
(F) Sections 1603 through 1607.
(2) CONFORMING
AMENDMENT.—The table of
contents of such Act is amended by repealing the
items referring to sections repealed by paragraph (1).
(b) STATUTORY MODIFICATIONS.—As of such privat-
ization date, the following shall take effect:
(1) For purposes of title I of the Atomic Energy
Act of 1954, all references in such Act to the ‘‘United
States Enrichment Corporation’’ shall be deemed to be
references to the corporation established pursuant to
section 1503 of the Atomic Energy Act of 1954 (as
added by section 6(a)).
(2) Section 1018(1) of the Energy Policy Act of
1992 (42 U.S.C. 2296b–7(1)) is amended by striking
‘‘the United States’’ and all that follows through the
period and inserting ‘‘the corporation referred to in
section 1201(4) of the Atomic Energy Act of 1954.’’.
(3) Section 9101(3) of title 31, United States
Code, is amended by striking subparagraph (N), as
added by section 902(b) of Public Law 102–486.
(c) REVISION OF SECTION 1305.—As of such privatiza-
tion date, section 1305 of the Atomic Energy Act of 1954
(42 U.S.C 2297b–4) is amended—
(1) by repealing subsections (a), (b), (c), and (d),
and
(2) in subsection (e)—
(A) by striking the subsection designation
and heading,
(B) by redesignating paragraphs (1) and
(2) (as added by section 4(a)) as subsections (a)
and (b) and by moving the margins 2-ems to
the left,
(C) by striking paragraph (3), and
(D) by redesignating paragraph (4) (as
amended by section 4(b)) as subsection (c), and
by moving the margins 2-ems to the left.
Æ
HR 1216 RH——2