H. R. 3616—329
SEC. 3135. CONTINUATION OF PROCESSING, TREATMENT, AND DIS-
POSITION OF LEGACY NUCLEAR MATERIALS.
The Secretary of Energy shall continue operations and maintain
a high state of readiness at the F–canyon and H–canyon facilities
at the Savannah River Site, Aiken, South Carolina, and shall pro-
vide technical staff necessary to operate and so maintain such
facilities.
SEC. 3136. AUTHORITY FOR DEPARTMENT OF ENERGY FEDERALLY
FUNDED RESEARCH AND DEVELOPMENT CENTERS TO
PARTICIPATE IN MERIT-BASED TECHNOLOGY RESEARCH
AND DEVELOPMENT PROGRAMS.
(a) AUTHORITY.—Section 217(f )(1) of the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103–337; 108
Stat. 2695) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(1)’’;
(2) by inserting ‘‘or of the Department of Energy’’ after
‘‘the Department of Defense’’; and
(3) by adding at the end the following new subparagraph:
‘‘(B) A federally funded research and development center of
the Department of Energy described in subparagraph (A) may
respond to solicitations and announcements described in that
subparagraph only for activities conducted by the center under
contract with or on behalf of the Department of Defense.’’.
(b) CONFORMING AMENDMENT.—Section 217(f )(2) of such Act
is amended by inserting ‘‘(A)’’ after ‘‘(1)’’.
SEC. 3137. ACTIVITIES OF DEPARTMENT OF ENERGY FACILITIES.
(a) RESEARCH AND ACTIVITIES ON BEHALF OF NON-DEPARTMENT
PERSONS AND ENTITIES.—(1) The Secretary of Energy may conduct
research and other activities referred to in paragraph (2) at facilities
of the Department of Energy on behalf of other departments and
agencies of the Government, agencies of State and local govern-
ments, and private persons and entities.
(2) The research and other activities that may be conducted
under paragraph (1) are those which the Secretary is authorized
to conduct by law, including research and activities authorized
under the following provisions of law:
(A) The Atomic Energy Act of 1954 (42 U.S.C. 2011 et
seq.).
(B) The Energy Reorganization Act of 1974 (42 U.S.C.
5811 et seq.).
(C) The Federal Nonnuclear Energy Research and Develop-
ment Act of 1974 (42 U.S.C. 5901 et seq.).
(b) CHARGES.—(1) The Secretary shall impose on the depart-
ment, agency, or person or entity for which research and other
activities are carried out under subsection (a) a charge for such
research and activities in carrying out such research and activities,
which shall include—
(A) the direct cost incurred in carrying out such research
and activities; and
(B) the overhead cost, including site-wide indirect costs,
associated with such research and activities.
(2)(A) Subject to subparagraph (B), the Secretary shall also
impose on the department, agency, or person or entity concerned
a Federal administrative charge (which includes any depreciation
and imputed interest charges) in an amount not to exceed 3 percent
H. R. 3616—330
of the full cost incurred in carrying out the research and activities
concerned.
(B) The Secretary may waive the imposition of the Federal
administrative charge required by subparagraph (A) in the case
of research and other activities conducted on behalf of small busi-
ness concerns, institutions of higher education, non-profit entities,
and State and local governments.
(3) Not later than 2 years after the date of the enactment
of this Act, the Secretary shall terminate any waiver of charges
under section 33 of the Atomic Energy Act of 1954 (42 U.S.C.
2053) that were made before such date, unless the Secretary deter-
mines that such waiver should be continued.
(c) 
PILOT
PROGRAM
OF
REDUCED
FACILITY
OVERHEAD
CHARGES.—(1) The Secretary may, with the cooperation of partici-
pating contractors of the contractor-operated facilities of the Depart-
ment, carry out a pilot program under which the Secretary and
such contractors reduce the facility overhead charges imposed under
this section for research and other activities conducted under this
section.
(2) The Secretary shall carry out the pilot program at contrac-
tor-operated facilities selected by the Secretary in consultation with
the contractors concerned.
(3) The Secretary shall determine the facility overhead charges
to be imposed under the pilot program at a facility based on a
joint review by the Secretary and the contractor for the facility
of all items included in the overhead costs of the facility in order
to determine which items are appropriately incurred as facility
overhead charges by the contractor in carrying out research and
other activities at such facility under this section.
(4) The Secretary shall commence carrying out the pilot pro-
gram under this subsection not later than October 1, 1999, and
shall terminate the pilot program on September 30, 2003.
(5) Not later than January 31, 2003, the Secretary shall submit
to Congress an interim report on the results of the pilot program
under this subsection. The report shall include any recommenda-
tions for the extension or expansion of the pilot program, including
the establishment of multiple rates of overhead charges for various
categories of persons and entities seeking research and other activi-
ties in contractor-operated facilities of the Department.
(d) APPLICABILITY WITH RESPECT TO USER FEE PRACTICE.—
This section does not apply to the practice of the Department
of Energy with respect to user fees at Department facilities.
SEC. 3138. HANFORD OVERHEAD AND SERVICE CENTER COSTS.
(a) TARGET FOR REDUCTION OF COSTS.—The Secretary of Energy
shall establish a target for the overhead and service center costs
for the Project Hanford Management Contractor for fiscal year
1999 that is less than the established baseline for such costs for
that fiscal year.
(b) USE OF FUNDS RESULTING FROM REDUCTION.—If the actual
overhead and service center costs for that contractor for fiscal
year 1999 are less than the established baseline for such costs
for that fiscal year, the Secretary, to the extent consistent with
fiscal year 1999 appropriations, shall use an amount equal to the
difference between the baseline and such actual costs to perform
additional clean-up work at Hanford in order to reduce the most
threatening environmental risks at Hanford and to comply with
H. R. 3616—331
applicable laws and regulations and the Tri-Party Agreement among
the Department of Energy, the Environmental Protection Agency,
and the State of Washington.
(c) REVIEW.—The Director of the Defense Contract Audit Agency
shall review the Project Hanford Management Contract for compli-
ance with cost accounting standards promulgated pursuant to sec-
tion 26(f ) of the Office of Federal Procurement Policy Act (42
U.S.C. 422(f )). The review shall include the following:
(1) An identification and assessment of methods for cal-
culating overhead costs.
(2) A description of activities the costs of which are allo-
cated to—
(A) all accounts at the Hanford site other than over-
head accounts; or
(B) other contracts under which work is performed
at the Hanford site.
(3) A description of service center costs, including—
(A) computer service and information management
costs and other support service costs; and
(B) costs of any activity which is paid for on a per-
unit basis.
(4) An identification and assessment of all fees, awards,
or other profit on overhead or service center costs that are
not attributed to performance on a single project or contract.
(5) An identification and assessment of all contracts
awarded without competition.
(6) An identification and assessment of any other costs
that the Director considers necessary or appropriate to present
a full and complete review of Hanford costs.
(d) REPORT.—Not later than March 1, 1999, the Director of
the Defense Contract Audit Agency shall submit to the congressional
defense committees a report on the results of the review under
subsection (c).
SEC. 3139. HANFORD WASTE TANK CLEANUP PROGRAM REFORMS.
(a) ESTABLISHMENT
OF OFFICE
OF RIVER PROTECTION.—The
Secretary of Energy shall establish an office at the Hanford Reserva-
tion, Richland, Washington, to be known as the ‘‘Office of River
Protection’’ (in this section referred to as the ‘‘Office’’).
(b) MANAGEMENT AND RESPONSIBILITIES OF OFFICE.—(1) The
Office shall be headed by a senior official of the Department of
Energy, who shall report to the Assistant Secretary of Energy
for Environmental Management.
(2) The head of the Office shall be responsible for managing
all aspects of the Tank Waste Remediation System (also referred
to as the Hanford Tank Farm operations), including those portions
under privatization contracts, of the Department of Energy at Han-
ford.
(c) DEPARTMENT RESPONSIBILITIES.—The Secretary shall pro-
vide the manager of the Office with the resources and personnel
necessary to manage the tank waste privatization program at Han-
ford in an efficient and streamlined manner.
(d) INTEGRATED MANAGEMENT PLAN.—Not later than 90 days
after the date of the enactment of this Act, the Secretary shall
submit to the Committee on Armed Services of the Senate and
the Committees on Commerce and on National Security of the
House of Representatives an integrated management plan for all
H. R. 3616—332
aspects of the Hanford Tank Farm operations, including the roles,
responsibilities, and reporting relationships of the Office.
(e) REPORT.—Not later than 2 years after the commencement
of operations of the Office, the Secretary shall submit to the commit-
tees referred to in subsection (d) a report describing—
(1) any progress in or resulting from the utilization of
the Tank Waste Remediation System; and
(2) any improvements in the management structure of the
Department at Hanford with respect to the Tank Waste
Remediation System as a result of the Office.
(f ) TERMINATION.—(1) The Office shall terminate 5 years after
the commencement of operations under this section unless the
Secretary determines that termination on that date would disrupt
effective management of the Hanford Tank Farm operations.
(2) The Secretary shall notify, in writing, the committees
referred to in subsection (d) of a determination under paragraph
(1).
SEC. 3140. HANFORD HEALTH INFORMATION NETWORK.
Of the funds authorized to be appropriated or otherwise made
available to the Department of Energy by section 3102, $1,500,000
shall be available for activities relating to the Hanford Health
Information Network established pursuant to the authority in sec-
tion 3138 of the National Defense Authorization Act for Fiscal
Year 1991 (Public Law 101–510; 104 Stat. 1834), as amended by
section 3138(b) of the National Defense Authorization Act for Fiscal
Year 1995 (Public Law 103–337; 108 Stat. 3087).
SEC. 3141. HAZARDOUS MATERIALS MANAGEMENT AND EMERGENCY
RESPONSE TRAINING PROGRAM.
The Secretary of Energy may enter into partnership arrange-
ments with Federal and non-Federal entities to share the costs
of operating the hazardous materials management and hazardous
materials emergency response training program authorized under
section 3140(a) of the National Defense Authorization Act for Fiscal
Year 1995 (Public Law 103–337; 108 Stat. 3088). Such arrange-
ments may include the exchange of equipment and services, in
lieu of payment for the training program.
SEC. 3142. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF
LOS ALAMOS NATIONAL LABORATORY, NEW MEXICO.
(a) AVAILABILITY OF FUNDS.—Of the funds authorized to be
appropriated or otherwise made available to the Department of
Energy by this title, up to $5,000,000 shall be made available
for payment by the Secretary of Energy to the educational founda-
tion chartered to enhance educational activities in the public schools
in the vicinity of Los Alamos National Laboratory, New Mexico
(in this section referred to as the ‘‘Foundation’’).
(b) USE
OF FUNDS.—(1) The Foundation shall utilize funds
provided under subsection (a) as a contribution to an endowment
fund for the Foundation.
(2) The Foundation shall use the income generated from invest-
ments in the endowment fund that are attributable to the payment
made under subsection (a) to fund programs to support the edu-
cational needs of children in public schools in the vicinity of Los
Alamos National Laboratory.