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the current estimated cost of the construction project,
which is authorized by sections 3101, 3102, and 3104, or
which is in support of national security programs of the
Department of Energy and was authorized by any pre-
vious Act, exceeds by more than 25 percent the higher
of—
(A) the amount authorized for the project; or
(B) the amount of the total estimated cost for
the project as shown in the most recent budget jus-
tification data submitted to Congress.
(2) An action described in paragraph (1) may be
taken if—
(A) the Secretary of Energy has submitted to
the congressional defense committees a report on the
actions and the circumstances making such action
necessary; and
(B) a period of 30 days has elapsed after the
date on which the report is received by the commit-
tees.
(3) In the computation of the 30-day period under
paragraph (2), there shall be excluded any day on which
either House of Congress is not in session because of an
adjournment of more than 3 days to a day certain.
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(b) EXCEPTION.—Subsection (a) shall not apply to
any construction project which has a current estimated
cost of less than $5,000,000.
SEC. 3124. FUND TRANSFER AUTHORITY.
(a) TRANSFER TO OTHER FEDERAL AGENCIES.—
The Secretary of Energy may transfer funds authorized
to be appropriated to the Department of Energy pursuant
to this title to other Federal agencies for the performance
of work for which the funds were authorized. Funds so
transferred may be merged with and be available for the
same purposes and for the same time period as the author-
izations of the Federal agency to which the amounts are
transferred.
(b) TRANSFER WITHIN DEPARTMENT OF ENERGY;
LIMITATIONS.—(1) Subject to paragraph (2), the Sec-
retary of Energy may transfer funds authorized to be ap-
propriated to the Department of Energy pursuant to this
title between any such authorizations. Amounts of author-
izations so transferred may be merged with and be avail-
able for the same purposes and for the same time period
as the authorization to which the amounts are transferred.
(2) Not more than 5 percent of any such authoriza-
tion may be transferred between authorizations under
paragraph (1). No such authorization may be increased
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or decreased by more than 5 percent by a transfer under
such paragraph.
(3) The authority provided by this section to transfer
authorizations—
(A) may only be used to provide funds for items
that have a higher priority than the items from
which the funds are transferred; and
(B) may not be used to provide authority for an
item that has been denied funds by Congress.
(c) NOTICE TO CONGRESS.—The Secretary of Energy
shall promptly notify the Committee on Armed Services
of the Senate and the Committee on National Security of
the House of Representatives of any transfer of funds to
or from authorizations under this title.
SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUC-
TION DESIGN.
(a) REQUIREMENT FOR CONCEPTUAL DESIGN.—(1)
Subject to paragraph (2) and except as provided in para-
graph (3), before submitting to Congress a request for
funds for a construction project that is in support of a
national security program of the Department of Energy,
the Secretary of Energy shall complete a conceptual de-
sign for that project.
(2) If the estimated cost of completing a conceptual
design for a construction project exceeds $3,000,000, the
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Secretary shall submit to Congress a request for funds for
the conceptual design before submitting a request for
funds for the construction project.
(3) The requirement in paragraph (1) does not apply
to a request for funds—
(A) for a construction project the total esti-
mated cost of which is less than $2,000,000, or
(B) for emergency planning, design, and con-
struction activities under section 3126.
(b) AUTHORITY FOR CONSTRUCTION DESIGN.—(1)
Within the amounts authorized by this title, the Secretary
of Energy may carry out construction design services (in-
cluding architectural and engineering services) in connec-
tion with any proposed construction project if the total
estimated cost for such design does not exceed $600,000.
(2) If the total estimated cost for construction design
in connection with any construction project exceeds
$600,000, funds for such design must be specifically au-
thorized by law.
SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DE-
SIGN, AND CONSTRUCTION ACTIVITIES.
(a) AUTHORITY.—The Secretary of Energy may use
any funds available to the Department of Energy pursuant
to an authorization in this title, including those funds au-
thorized to be appropriated for advance planning and con-
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struction design under sections 3101, 3102, and 3104, to
perform planning, design, and construction activities for
any Department of Energy defense activity construction
project that, as determined by the Secretary, must proceed
expeditiously in order to protect public health and safety,
meet the needs of national defense, or to protect property.
(b) LIMITATION.—The Secretary may not exercise
the authority under subsection (a) in the case of any con-
struction project until the Secretary has submitted to the
congressional defense committees a report on the activities
that the Secretary intends to carry out under this section
and the circumstances making such activities necessary.
(c) SPECIFIC AUTHORITY.—The requirement of sec-
tion 3125(b)(2) does not apply to emergency planning, de-
sign, and construction activities conducted under this sec-
tion.
(d) REPORT.—The Secretary of Energy shall report
to the congressional defense committees any exercise of
authority under this section.
SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECU-
RITY PROGRAMS OF THE DEPARTMENT OF
ENERGY.
Subject to the provisions of appropriations Acts and
section 3121 of this title, amounts appropriated pursuant
to this title for management and support activities and
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for general plant projects are available for use, when nec-
essary, in connection with all national security programs
of the Department of Energy.
SEC. 3128. AVAILABILITY OF FUNDS.
When so specified in an appropriation Act, amounts
appropriated for operating expenses or for plant and cap-
ital equipment may remain available until expended.
Subtitle 
C—Program 
Authoriza-
tions, Restrictions, and Limita-
tions
SEC. 3131. AUTHORITY TO CONDUCT PROGRAM RELATING
TO FISSILE MATERIALS.
(a) AUTHORITY.—The Secretary of Energy may con-
duct programs designed to improve the protection, control,
and accountability of fissile materials in Russia.
(b) PRIOR NOTICE TO CONGRESS OF OBLIGATION OF
FUNDS.—
(1) ANNUAL REQUIREMENT.—(A) Not less than
15 days before any obligation of any funds appro-
priated for any fiscal year for a program described
in subsection (a), the Secretary of Energy shall sub-
mit to the congressional committees specified in sub-
paragraph (B) a report on that proposed obligation
for that program for that fiscal year.
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(B) The congressional committees referred to in
subparagraph (A) are the following:
(i) The Committee on Armed Services, the
Committee on Foreign Relations, and the Com-
mittee on Appropriations of the Senate.
(ii) The Committee on National Security,
the Committee on International Relations, and
the Committee on Appropriations of the House
of Representatives.
(2) MATTERS TO BE SPECIFIED IN REPORTS.—
Each such report shall specify—
(A) the activities and forms of assistance
for which the Secretary of Energy plans to obli-
gate funds;
(B) the amount of the proposed obligation;
and
(C) the projected involvement (if any) of
any department or agency of the United States
(in addition to the Department of Energy) and
of the private sector of the United States in the
activities and forms of assistance for which the
Secretary of Energy plans to obligate such
funds.
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SEC. 3132. NATIONAL IGNITION FACILITY.
None of the funds appropriated pursuant to this title
for the National Ignition Facility may be obligated until—
(1) the Secretary of Energy concludes that the
construction of the National Ignition Facility will
not impede the nuclear nonproliferation objectives of
the United States; and
(2) the Secretary of Energy notifies the con-
gressional defense committees of that conclusion.
SEC. 3133. TRITIUM PRODUCTION.
(a) NEW TRITIUM PRODUCTION ACTIVITIES.—
(1) Of the amounts authorized to be appro-
priated 
in 
section 
3101(b), 
not 
more 
than
$50,000,000 shall be available for a project to pro-
vide a long-term source of tritium, subject to para-
graph (2).
(2) The amount made available under para-
graph (1) may not be used until such time as the
Secretary of Energy has completed a record of deci-
sion on a tritium production program and congres-
sional hearings have been conducted to determine
the appropriate option, in light of the national secu-
rity needs and nonproliferation and environmental
consequences, for establishing a long-term source of
tritium.
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(b) FISSILE MATERIALS CONTROL
AND DISPOSI-
TION.—Funds authorized to be appropriated for fiscal
year 1996 for fissile materials storage and disposition ac-
tivities shall be available only for completing the evalua-
tion and beginning the implementation of the plutonium
storage and disposition option, including the multipurpose
advanced light water reactor, in the amount of
$70,000,000, of which—
(1) $5,000,000 shall be made available to the
Idaho National Engineering Laboratory for evalua-
tion of plutonium conversion to oxide fuel material
in the multipurpose advanced light water reactor;
and
(2) sufficient funds shall be made available for
a complete consideration of the multipurpose ad-
vanced light water reactor in the Department of En-
ergy programmatic environmental impact statement.
Subtitle D—Other Matters
SEC. 3141. REPORT ON FOREIGN TRITIUM PURCHASES.
Not later than February 1, 1996, the President shall
submit to Congress a report on the feasibility of, the cost
of, and the political, legal, and other issues associated with
purchasing tritium from various foreign suppliers in order
to ensure an adequate supply of tritium in the United
States for nuclear weapons.
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SEC. 3142. STUDY ON NUCLEAR TEST READINESS POS-
TURES.
Not later than February 15, 1996, the Secretary of
Energy shall submit to Congress a report on the cost of,
and the programmatic and other issues associated with,
sustaining an ability to conduct an underground nuclear
test in 6, 18, and 36 months from the date on which the
President determines that such a test is necessary to en-
sure the national security of the United States.
SEC. 3143. MASTER PLAN ON WARHEADS IN THE ENDURING
STOCKPILE.
(a) MASTER PLAN.—Not later than March 15, 1996,
the President shall submit to Congress a master plan that
describes in detail how the Government plans to dem-
onstrate, by 2002—
(1) the capability to refabricate and certify war-
heads in the enduring stockpile; and
(2) the capability to design, fabricate, and cer-
tify new warheads.
(b) FORM OF PLAN.—The plan should be submitted
in classified and unclassified forms.
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SEC. 3144. PROHIBITION ON INTERNATIONAL INSPECTIONS
OF DEPARTMENT OF ENERGY FACILITIES UN-
LESS PROTECTION OF RESTRICTED DATA IS
CERTIFIED.
(a) PROHIBITION ON INSPECTIONS.—The Secretary
of Energy may not allow an inspection of a nuclear weap-
ons facility by the International Atomic Energy Agency
until—
(1) the Secretary certifies to Congress that no
restricted data or classified information will be re-
vealed during such inspection; and
(2) a period of 30 days has passed since the
date on which such certification was made.
(b) RESTRICTED DATA DEFINED.—In this section,
the term ‘‘restricted data’’ has the meaning provided by
section 11 y. of the Atomic Energy Act of 1954 (42 U.S.C.
2014(y)).
SEC. 
3145. 
ACCELERATED 
SCHEDULE 
FOR 
ENVIRON-
MENTAL MANAGEMENT ACTIVITIES.
(a) ACCELERATED CLEANUP.—The Secretary of En-
ergy shall accelerate the schedule for environmental man-
agement activities and projects for any specific Depart-
ment of Energy defense nuclear facility site if, in the opin-
ion of the Secretary, such an accelerated schedule will re-
sult in substantial long-term cost savings to the Federal
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Government and speed up release of land for economic de-
velopment.
(b) SITE SELECTION.—In selecting sites for an accel-
erated schedule under subsection (a), the Secretary shall
give highest priority to sites that are in close proximity
to populated areas, that pose significant risk, and that
have the greatest potential to result in privatization, com-
mercialization, and economic development of unneeded fa-
cilities.
(c) ELIGIBILITY.—For purposes of subsection (a),
environmental management activities and projects shall be
eligible for an accelerated schedule under subsection (a)
if the time for completion at the site of such activities can
be reduced by 50 percent or more below the time estab-
lished in the report of the Department of Energy Office
of Environmental Management titled ‘‘1995 Baseline En-
vironmental Management Report’’, March 1995.
(d) SAVINGS PROVISION.—Nothing in this section
shall be construed as affecting a specific statutory require-
ment for a specific project or as modifying or otherwise
affecting applicable statutory or regulatory environmental
restoration requirements, including substantive standards
intended to protect public health and the environment.
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TITLE 
XXXII—DEFENSE 
NU-
CLEAR 
FACILITIES 
SAFETY
BOARD
SEC. 3201. AUTHORIZATION.
There are authorized to be appropriated for fiscal
year 1996 $17,000,000 for the operation of the Defense
Nuclear Facilities Safety Board under chapter 21 of the
Atomic Energy Act of 1954 (42 U.S.C. 2286 et seq.)
TITLE XXXIII—NATIONAL
DEFENSE STOCKPILE
SEC. 3301. FISCAL YEAR 1996 AUTHORIZED USES OF STOCK-
PILE FUNDS.
(a) OBLIGATION OF STOCKPILE FUNDS.—During fis-
cal year 1996, the National Defense Stockpile Manager
may obligate up to $77,100,000 of the funds in the Na-
tional Defense Stockpile Transaction Fund established
under subsection (a) of section 9 of the Strategic and Crit-
ical Materials Stock Piling Act (50 U.S.C. 98h) for the
authorized uses of such funds under subsection (b)(2) of
such section.
(b) ADDITIONAL OBLIGATIONS.—The National De-
fense Stockpile Manager may obligate amounts in excess
of the amount specified in subsection (a) if the National
Defense Stockpile Manager notifies Congress that extraor-
dinary or emergency conditions necessitate the additional
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obligations. The National Defense Stockpile Manager may
make the additional obligations described in the notifica-
tion after the end of the 45-day period beginning on the
date Congress receives the notification.
(c) LIMITATIONS.—The authorities provided by this
section shall be subject to such limitations as may be pro-
vided in appropriations Acts.
SEC. 3302. PREFERENCE FOR DOMESTIC UPGRADERS IN
DISPOSAL OF CHROMITE AND MANGANESE
ORES AND CHROMIUM FERRO AND MAN-
GANESE METAL ELECTROLYTIC.
(a) PREFERENCE FOR DOMESTIC UPGRADING.—In
offering to enter into agreements pursuant to any provi-
sion of law for the disposal from the National Defense
Stockpile of chromite and manganese ores of metallurgical
grade or chromium ferro and manganese metal electro-
lytic, the President shall give a right of first refusal on
all such offers to domestic ferroalloy upgraders.
(b) DOMESTIC FERROALLOY UPGRADER DEFINED.—
For purposes of this section, the term ‘‘domestic ferroalloy
upgrader’’ means a company or other business entity that,
as determined by the President—
(1) is engaged in (or is capable of engaging in)
operations to upgrade chromite or manganese ores
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of metallurgical grade or chromium ferro and man-
ganese metal electrolytic; and
(2) conducts a significant level of its research,
development, engineering, and upgrading operations
in the United States.
(c) NATIONAL DEFENSE STOCKPILE DEFINED.—For
purposes of this section, the term ‘‘National Defense
Stockpile’’ means the stockpile provided for in section 4
of the Strategic and Critical Materials Stock Piling Act
(50 U.S.C. 98c).
SEC. 3303. RESTRICTIONS ON DISPOSAL OF MANGANESE
FERRO.
(a) DISPOSAL
OF
LOWER
GRADE
MATERIAL
FIRST.—The President may not dispose of high carbon
manganese ferro in the National Defense Stockpile that
meets the National Defense Stockpile classification of
Grade One, Specification 30(a), as revised on May 22,
1992, until completing the disposal of all manganese ferro
in the National Defense Stockpile that does not meet such
classification. The President may not reclassify man-
ganese ferro in the National Defense Stockpile after the
date of the enactment of this Act.
(b) REQUIREMENT FOR DOMESTIC UPGRADING.—
Manganese ferro in the National Defense Stockpile that
does not meet the classification specified in subsection (a)
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shall only be sold for domestic remelting in a submerged
arc ferromanganese furnace.
(c) NATIONAL DEFENSE STOCKPILE DEFINED.—For
purposes of this section, the term ‘‘National Defense
Stockpile’’ means the stockpile provided for in section 4
of the Strategic and Critical Materials Stock Piling Act
(50 U.S.C. 98c).
SEC. 3304. TITANIUM INITIATIVE TO SUPPORT BATTLE
TANK UPGRADE PROGRAM.
(a) TRANSFER OF TITANIUM.—During each of the
fiscal years 1996 through 2003, the Secretary of Defense
shall transfer from stocks of the National Defense Stock-
pile up to 250 short tons of titanium sponge to the Sec-
retary of the Army for use in the weight reduction portion
of the main battle tank upgrade program. Transfers under
this section shall be without charge to the Army, except
that the Secretary of the Army shall pay all transportation
and related costs incurred in connection with the transfer.
(b) NATIONAL DEFENSE STOCKPILE DEFINED.—
For purposes of this section, the term ‘‘National Defense
Stockpile’’ means the stockpile provided for in section 4
of the Strategic and Critical Materials Stock Piling Act
(50 U.S.C. 98c).
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TITLE XXXIV—NAVAL
PETROLEUM RESERVES
SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.
There is hereby authorized to be appropriated to the
Secretary of Energy $101,028,000 for fiscal year 1996 for
the purpose of carrying out activities under chapter 641
of title 10, United States Code, relating to the naval petro-
leum reserves (as defined in section 7420(2) of such title).
Funds appropriated pursuant to such authorization shall
remain available until expended.
SEC. 3402. PRICE REQUIREMENT ON SALE OF CERTAIN PE-
TROLEUM DURING FISCAL YEAR 1996.
Notwithstanding section 7430(b)(2) of title 10, Unit-
ed States Code, during fiscal year 1996, any sale of any
part of the United States share of petroleum produced
from Naval Petroleum Reserves Numbered 1, 2, and 3
shall be made at a price not less than 90 percent of the
current sales price, as estimated by the Secretary of En-
ergy, of comparable petroleum in the same area.
SEC. 3403. SALE OF NAVAL PETROLEUM RESERVE NUM-
BERED 1 (ELK HILLS).
(a) SALE OF ELK HILLS UNIT REQUIRED.—Chapter
641 of title 10, United States Code, is amended by insert-
ing after section 7421 the following new section:
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‘‘§ 7421a. Sale of Naval Petroleum Reserve Numbered
1 (Elk Hills)
‘‘(a) SALE REQUIRED.—(1) Notwithstanding any
other provision of this chapter, the Secretary shall sell all
right, title, and interest of the United States in and to
lands owned or controlled by the United States inside
Naval Petroleum Reserve Numbered 1, commonly referred
to as the Elk Hills Unit, located in Kern County, Califor-
nia, and established by Executive order of the President,
dated September 2, 1912. Within one year after the effec-
tive date, the Secretary shall enter into one or more con-
tracts for the sale of all of the interest of the United
States in the reserve.
‘‘(2) In this section:
‘‘(A) The term ‘reserve’ means Naval Petroleum
Reserve Numbered 1.
‘‘(B) The term ‘unit plan contract’ means the
unit plan contract between equity owners of the
lands within the boundaries of Naval Petroleum Re-
serve Numbered 1 entered into on June 19, 1944.
‘‘(C) The term ‘effective date’ means the date
of the enactment of the National Defense Authoriza-
tion Act for Fiscal Year 1996.
‘‘(b) EQUITY FINALIZATION.—(1) Not later than five
months after the effective date, the Secretary shall finalize
equity interests of the known oil and gas zones in Naval
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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 recommendation
on final equity figures. The Secretary may accept the rec-
ommendation of the independent petroleum engineer for
final equity in each known oil and gas zone and establish
final equity interest in the Naval Petroleum Reserve Num-
bered 1 in accordance with such recommendation, or the
Secretary may use such other method to establish final
equity interest in the reserve as the Secretary considers
appropriate.
‘‘(3) If, on the effective date, there is an ongoing eq-
uity redetermination dispute between the equity owners
under section 9(b) of the unit plan contract, such dispute
shall be resolved in the manner provided in the unit plan
contract within five months after the effective date. Such
resolution shall be considered final for all purposes under
this section.
‘‘(c) TIMING AND ADMINISTRATION OF SALE.—(1)
Not later than two months after the effective date, the
Secretary shall retain the services of five independent ex-
perts in the valuation of oil and gas fields to conduct sepa-
rate assessments, in a manner consistent with commercial
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practices, of the fair market value of the interest of the
United States in Naval Petroleum Reserve Numbered 1.
In making their assessments, the independent experts
shall consider (among other factors) all equipment and fa-
cilities to be included in the sale, the net present value
of the reserve, and the net present value of the anticipated
revenue stream that the Secretary determines the Treas-
ury would receive from the reserve if the reserve were not
sold, adjusted for any anticipated increases in tax reve-
nues that would result if the reserve were sold. The inde-
pendent experts shall complete their assessments within
five months after the effective date. In setting the mini-
mum acceptable price for the reserve, the Secretary shall
consider the average of the five assessments or, if more
advantageous to the Government, the average of three as-
sessments after excluding the high and low assessments.
‘‘(2) Not later than two months after the effective
date, the Secretary shall retain the services of an invest-
ment banker to independently administer, in a manner
consistent with commercial practices and in a manner that
maximizes sale proceeds to the Government, the sale of
Naval Petroleum Reserve Numbered 1 under this section.
‘‘(3) Not later than five months after the effective
date, the sales administrator selected under paragraph (2)
shall complete a draft contract for the sale of Naval Petro-
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leum Reserve Numbered 1, which shall accompany the in-
vitation for bids and describe the terms and provisions of
the sale of the interest of the United States in the reserve.
The draft contract shall identify all equipment and facili-
ties to be included in the sale. The draft contract, includ-
ing the terms and provisions of the sale of the interest
of the United States in the reserve, shall be subject to
review and approval by the Secretary, the Secretary of the
Treasury, and the Director of the Office of Management
and Budget.
‘‘(4) Not later than six months after the effective
date, the Secretary shall publish an invitation for bids for
the purchase of the reserve.
‘‘(5) Not later than nine months after the effective
date, the Secretary shall accept the highest responsible
offer for purchase of the interest of the United States in
Naval Petroleum Reserve Numbered 1 that meets or ex-
ceeds the minimum acceptable price determined under
paragraph (1).
‘‘(d) FUTURE LIABILITIES.—The United States shall
hold harmless and fully indemnify the purchaser of the
interest of the United States in Naval Petroleum Reserve
Numbered 1 from and against any claim or liability as
a result of ownership in the reserve by the United States.
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‘‘(e) TREATMENT
OF
STATE
OF
CALIFORNIA
CLAIM.—(1) All claims against the United States by the
State of California or the Teachers’ Retirement Fund of
the State of California with respect to land within the
Naval Petroleum Reserve Numbered 1 or production or
proceeds of sale from the reserve shall be resolved only
as follows:
‘‘(A) A payment from funds provided for this
purpose in advance in appropriation Acts.
‘‘(B) A grant of nonrevenue generating land in
lieu of such a payment pursuant to sections 2275
and 2276 of the Revised Statutes of the United
States (43 U.S.C. 851 and 852).
‘‘(C) Any other means that would not be incon-
sistent with the Congressional Budget Act of 1974
(2 U.S.C. 621 et seq.).
‘‘(D) Any combination of subparagraphs (A),
(B), and (C).
‘‘(2) The value of any payment, grant, or means (or
combination thereof) under paragraph (1) may not exceed
an amount equal to seven percent of the proceeds from
the sale of the reserve, after deducting the costs incurred
to conduct the sale.
‘‘(f) PRODUCTION ALLOCATION FOR SALE.—(1) As
part of the contract for purchase of Naval Petroleum Re-
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serve Numbered 1, the purchaser of the interest of the
United States in the reserve shall agree to make up to
25 percent of the purchaser’s share of annual petroleum
production from the purchased lands available for sale to
small refiners, which do not have their own adequate
sources of supply of petroleum, for processing or use only
in their own refineries. None of the reserved production
sold to small refiners may be resold in kind. The purchaser
of the reserve may reduce the quantity of petroleum re-
served under this subsection in the event of an insufficient
number of qualified bids. The seller of this petroleum pro-
duction has the right to refuse bids that are less than the
prevailing market price of comparable oil.
‘‘(2) The purchaser of the reserve shall also agree to
ensure that the terms of every sale of the purchaser’s
share of annual petroleum production from the purchased
lands shall be so structured as to give full and equal op-
portunity for the acquisition of petroleum by all interested
persons, including major and independent oil producers
and refiners alike.
‘‘(g) MAINTAINING
ELK
HILLS
UNIT
PRODUC-
TION.—Until the sale of Naval Petroleum Reserve Num-
bered 1 is completed under this section, the Secretary shall
continue to produce the reserve at the maximum daily oil
or gas rate from a reservoir, which will permit maximum
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economic development of the reservoir consistent with
sound oil field engineering practices in accordance with
section 3 of the unit plan contract. The definition of maxi-
mum efficient rate in section 7420(6) of this title shall
not apply to the reserve.
‘‘(h) 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 such production shall not exceed the an-
ticipated 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 Operation, Inc., Contract
Number DE–ACO1–85FE60520 so that the contract ter-
minates not later than the date of closing of the sale of
Naval Petroleum Reserve Numbered 1 under subsection
(c).
‘‘(3) The Secretary shall exercise the termination pro-
cedures provided in the unit plan contract so that the unit
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plan contract terminates not later than the date of closing
of the sale of reserve under subsection (c).
‘‘(i) EFFECT ON ANTITRUST LAWS.—Nothing in this
section shall be construed to alter the application of the
antitrust laws of the United States to the purchaser of
Naval Petroleum Reserve Numbered 1 or to the lands in
the reserve subject to sale under this section upon the
completion of the sale.
‘‘(j) PRESERVATION OF PRIVATE RIGHT, TITLE, AND
INTEREST.—Nothing in this section 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.
‘‘(k) CONGRESSIONAL NOTIFICATION.—Section 7431
of this title shall not apply to the sale of Naval Petroleum
Reserve Numbered 1 under this section. However, the Sec-
retary may not enter into a contract for the sale of the
reserve until the end of the 31-day period beginning on
the date on which the Secretary notifies the Committee
on Armed Services of the Senate and the Committee on
National Security and the Committee on Commerce of the
House of Representatives of the proposed sale.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
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after the item relating to section 7421 the following new
item:
‘‘7421a. Sale of Naval Petroleum Reserve Numbered 1 (Elk Hills).’’.
SEC. 3404. STUDY REGARDING FUTURE OF NAVAL PETRO-
LEUM RESERVES (OTHER THAN NAVAL PE-
TROLEUM RESERVE NUMBERED 1).
(a) STUDY REQUIRED.—The Secretary of Energy
shall conduct a study to determine which of the following
options regarding the naval petroleum reserves represents
the most cost-effective option for the United States:
(1) Retention and operation of the naval petro-
leum reserves by the Secretary under chapter 641 of
title 10, United States Code.
(2) Transfer of all or a part of the naval petro-
leum reserves to the jurisdiction of another Federal
agency.
(3) Lease of the naval petroleum reserves.
(4) Sale of the interest of the United States in
the naval petroleum reserves.
(b) CONDUCT OF STUDY.—The Secretary shall retain
an independent petroleum consultant to conduct the study.
(c) CONSIDERATIONS UNDER STUDY.—An examina-
tion of the benefits to be derived by the United States
from the sale of the naval petroleum reserves shall include
an assessment and estimate, in a manner consistent with
commercial practices, of the fair market value of the inter-
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est of the United States in the naval petroleum reserves.
An examination of the benefits to be derived by the United
States from the lease of the naval petroleum reserves shall
consider full exploration, development, and production of
petroleum products in the naval petroleum reserves, with
a royalty payment to the United States.
(d) REPORT REGARDING STUDY.—Not later than
December 31, 1995, the Secretary shall submit to Con-
gress a report describing the results of the study and con-
taining such recommendations as the Secretary considers
necessary to implement the most cost-effective option
identified in the study.
(e) NAVAL PETROLEUM RESERVES DEFINED.—For
purposes of this section, the term ‘‘naval petroleum re-
serves’’ has the meaning given that term in section
7420(2) of title 10, United States Code, except that such
term does not include Naval Petroleum Reserve Numbered
1.
TITLE XXXV—PANAMA CANAL
COMMISSION
Subtitle A—Authorization of
Appropriations
SEC. 3501. SHORT TITLE.
This subtitle may be cited as the ‘‘Panama Canal
Commission Authorization Act for Fiscal Year 1996’’.
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SEC. 3502. AUTHORIZATION OF EXPENDITURES.
(a) IN GENERAL.—Subject to subsection (b), the
Panama Canal Commission is authorized to make such ex-
penditures within the limits of funds and borrowing au-
thority available to it in accordance with law, and to make
such contracts and commitments without regard to fiscal
year limitations, as may be necessary under the Panama
Canal Act of 1979 (22 U.S.C. 3601 et seq.) for the oper-
ation, maintenance, and improvement of the Panama
Canal for fiscal year 1996.
(b) LIMITATIONS.—For fiscal year 1996, the Panama
Canal Commission may expend from funds in the Panama
Canal Revolving Fund not more than $50,741,000 for ad-
ministrative expenses, of which not more than—
(1) $11,000 may be used for official reception
and representation expenses of the Supervisory
Board of the Commission;
(2) $5,000 may be used for official reception
and representation expenses of the Secretary of the
Commission; and
(3) $30,000 may be used for official reception
and representation expenses of the Administrator of
the Commission.
(c) REPLACEMENT VEHICLES.—Funds available to
the Panama Canal Commission shall be available for the
purchase of not to exceed 38 passenger motor vehicles
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built in the United States (including large heavy-duty ve-
hicles to be used to transport Commission personnel
across the isthmus of Panama). A vehicle may be pur-
chased with such funds only as necessary to replace an-
other passenger motor vehicle of the Commission.
SEC. 3503. EXPENDITURES IN ACCORDANCE WITH OTHER
LAWS.
Expenditures authorized under this subtitle may be
made only in accordance with the Panama Canal Treaties
of 1977 and any law of the United States implementing
those treaties.
Subtitle B—Reconstitution of Com-
mission 
as 
Government 
Cor-
poration
SEC. 3521. SHORT TITLE.
This subtitle may be cited as the ‘‘Panama Canal
Amendments Act of 1995’’.
SEC. 3522. RECONSTITUTION OF COMMISSION AS GOVERN-
MENT CORPORATION.
Section 1101 of the Panama Canal Act of 1979 (22
U.S.C. 3611) is amended to read as follows:
‘‘ESTABLISHMENT, PURPOSES, OFFICES, AND RESIDENCE
OF THE COMMISSION
‘‘SEC. 1101. (a) For the purposes of managing, oper-
ating, and maintaining the Panama Canal and its com-
plementary works, installations and equipment, and of
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conducting operations incident thereto, in accordance with
the Panama Canal Treaty of 1977 and related agree-
ments, the Panama Canal Commission (hereinafter in this
Act referred to as the ‘Commission’) is established as a
wholly owned government corporation (as that term is
used in chapter 91 of title 31, United States Code) within
the executive branch of the Government of the United
States. The authority of the President with respect to the
Commission shall be exercised through the Secretary of
Defense.
‘‘(b) The principal office of the Commission shall be
located in the Republic of Panama in one of the areas
made available for use of the United States under the
Panama Canal Treaty of 1977 and related agreements,
but the Commission may establish branch offices in such
other places as it deems necessary or appropriate for the
conduct of its business. Within the meaning of the laws
of the United States relating to venue in civil actions, the
Commission is an inhabitant and resident of the District
of Columbia and the eastern judicial district of Louisi-
ana.’’.
SEC. 3523. SUPERVISORY BOARD.
Section 1102 of the Panama Canal Act of 1979 (22
U.S.C. 3612) is amended by striking so much as precedes
subsection (b) and inserting the following:
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‘‘SUPERVISORY BOARD
‘‘SEC. 1102. (a) The Commission shall be supervised
by a Board composed of nine members, one of whom shall
be the Secretary of Defense or an officer of the Depart-
ment of Defense designated by the Secretary. Not less
than five members of the Board shall be nationals of the
United States and the remaining members of the Board
shall be nationals of the Republic of Panama. Three mem-
bers of the Board who are nationals of the United States
shall hold no other office in, and shall not be employed
by, the Government of the United States, and shall be cho-
sen for the independent perspective they can bring to the
Commission’s affairs. Members of the Board who are na-
tionals of the United States shall cast their votes as di-
rected by the Secretary of Defense or a designee of the
Secretary of Defense.’’.
SEC. 3524. INTERNATIONAL ADVISORS.
Section 1102 of the Panama Canal Act of 1979 (22
U.S.C. 3612) is amended by adding at the end the follow-
ing new subsection:
‘‘(d)(1) In order to enhance the prestige of the Com-
mission in the world shipping community and allow for
the exchange of varied perspectives between the Board and
distinguished international guests in the important delib-
erations of the Commission, the Government of the United