I
104TH CONGRESS
1ST SESSION
H. R. 1216
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
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
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be consid-
ered 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 of title I (42 U.S.C. 2014
v.) is amended by striking ‘‘or the construction and oper-
ation of a uranium enrichment production facility using
Atomic Vapor Laser Isotope Separation technology’’.
SEC. 3. DEFINITIONS.
Section 1201 of title II (42 U.S.C. 2297) is
amended—
(1) in paragraph (4), by inserting before the pe-
riod the following: ‘‘and any successor corporation
thereto, including as contemplated in chapter 25’’;
(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 Amend-
ments 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 paragraph (14) as para-
graph (19).
SEC. 4. EMPLOYEES OF THE CORPORATION.
Paragraph (4) of section 1305(e) of title II (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
Corporation’’; and
(4) by striking the last sentence.
SEC. 5. MARKETING AND CONTRACTING AUTHORITY.
(a) EXCLUSIVE MARKETING AGENT.—Section 1401
(42 U.S.C. 2297c) is amended—
(1) effective on the privatization date (as de-
fined in section 1201(11) of the Atomic Energy Act
of 1954), by repealing subsection (a), and
(2) in subsection (b)—
(A) by striking ‘‘(b) TRANSFER OF CON-
TRACTS.—’’,
(B) by redesignating paragraphs (1), (2),
and (3) as subsections (a), (b), and (c), respec-
tively, and
(C) by redesignating subparagraphs (A),
(B) and (C) of subsections (b) and (c) (as so
redesignated) as paragraphs (1), (2), and (3),
respectively.
(b) TRANSFER OF CONTRACTS.—Section 1401(b) of
title II (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 ben-
efits under such contracts, agreements, and
leases, including the right to amend, modify, ex-
tend, revise, or terminate any of such contracts,
agreements, or leases were irrevocably assigned
to the Corporation for its exclusive benefit.
‘‘(B) Notwithstanding the transfer pursu-
ant to paragraph (1), the United States shall
remain obligated to the parties to the contracts,
agreements, and leases transferred thereby for
the performance of its obligations thereunder
during the term thereof. The Corporation shall
reimburse the United States for any amount
paid by the United States in respect of such ob-
ligations arising after the privatization date to
the extent such amount is a legal and valid obli-
gation of the Corporation then due.
‘‘(C) After the privatization date, upon any
material amendment, modification, extension,
revision, replacement, or termination of any
contract, agreement, or lease transferred under
paragraph (1), the United States shall be re-
leased from further obligation under such con-
tract, agreement, or lease, provided further that
such action shall not release the United States
from obligations arising under such contract,
agreement, or lease prior to such time.’’.
(b) PRICING.—Section 1402 of title II (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.’’.
(c) LEASING OF GASEOUS DIFFUSION FACILITIES OF
DEPARTMENT.—Section 1403 of title II (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 Corporation
as a result of the operations of the facilities and re-
lated property leased by the Corporation pursuant to
subsection (a) or as a result of treatment of such
wastes at a location other than the facilities and re-
lated property leased by the Corporation pursuant to
subsection (a), at the request of the Corporation, the
Department shall—
‘‘(i) accept for treatment or disposal of all
such wastes for which treatment or disposal
technologies and capacities exist, whether with-
in the Department or elsewhere; and
‘‘(ii) accept for storage (or ultimately
treatment or disposal) all such wastes for which
treatment and disposal technologies or capac-
ities do not exist, pending development 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, storage, 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 generated by the Department and
the Department shall handle such wastes in accord-
ance with any such permits, licenses, authorizations,
agreements, or orders. The Department shall obtain
any additional permits, licenses, or authorizations
necessary to handle such wastes, shall amend any
such agreements or orders as necessary to handle
such wastes, and shall handle such wastes in accord-
ance therewith.
‘‘(C) The Corporation shall reimburse the De-
partment for the treatment, storage, or disposal of
low-level radioactive waste or mixed waste pursuant
to subparagraph (A) in an amount equal to the De-
partment’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 treatment, storage, or disposal of such
waste.
‘‘(2) ACCEPTANCE BY OTHER PERSONS.—The
Corporation may also enter into agreements for the
treatment, storage, or disposal of low-level radio-
active waste and mixed waste generated by the Cor-
poration as a result of the operation of the facilities
and related property leased by the Corporation pur-
suant to subsection (a) with any person other than
the Department that is authorized by applicable laws
and regulations to treat, store, or dispose of such
wastes.’’.
(d) LIABILITIES.—
(1) Subsection (a) of section 1407 (as redesig-
nated) (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 at-
tributable 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 such section 1407 (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 en-
tered against the Corporation imposing liability
arising 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 such section 1407 (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)’’.
(e) TRANSFER OF URANIUM.—Title II (42 U.S.C.
2297 et seq.) is amended—
(1) by inserting after section 1408 (as redesig-
nated) the following:
‘‘SEC. 1409. TRANSFER OF URANIUM.
‘‘The Secretary may transfer to the Corporation with-
out charge raw uranium, low-enriched uranium, and high-
ly enriched uranium.’’; and
(2) by redesignating the subsequent sections ac-
cordingly.
SEC. 6. PRIVATIZATION OF THE CORPORATION.
(a) ESTABLISHMENT OF PRIVATE CORPORATION.—
Chapter 25 of title II (42 U.S.C. 2297d et seq.) is amend-
ed by adding at the end the following new section:
‘‘SEC. 1503. ESTABLISHMENT OF PRIVATE CORPORATION.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—In order to facilitate pri-
vatization, the Corporation may provide for the es-
tablishment of a private corporation organized under
the laws of any of the several States. Such corpora-
tion 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 estab-
lished pursuant to this section shall be authorized
to—
‘‘(A) enrich uranium, provide for uranium
to be enriched by others, or acquire enriched
uranium (including low-enriched uranium de-
rived from highly enriched uranium);
‘‘(B) conduct, or provide for conducting,
those research and development activities relat-
ed 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,
including—
‘‘(A) all of the Corporation’s assets, includ-
ing all contracts, agreements, and leases, in-
cluding 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 1405.
‘‘(4) MERGER OR CONSOLIDATION.—For pur-
poses of implementing the privatization, the Cor-
poration may merge or consolidate with the corpora-
tion established pursuant to this section if such ac-
tion is contemplated by the plan for privatization ap-
proved by the President. The Board shall have ex-
clusive authority to approve such merger or consoli-
dation and to take all further actions necessary to
consummate such merger or consolidation, and no
action by or in respect of shareholders shall be re-
quired. The merger or consolidation shall be effected
in accordance with, and have the effects of a merger
or consolidation under, the laws of the jurisdiction
of incorporation of the surviving corporation, and all
rights and benefits provided under this title to the
Corporation shall apply to the surviving 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 merg-
er with, the corporation established pursuant to
this section in connection with the privatization.
‘‘(B) CANCELLATION OF DEBT AND COM-
MON STOCK.—No income, gain, or loss shall be
recognized by any person by reason of any can-
cellation of any obligation or common stock of
the Corporation in connection with the privat-
ization.
‘‘(b) OSHA REQUIREMENTS.—For purposes of the
regulation of radiological and nonradiological hazards
under the Occupational Safety and Health Act of 1970,
the corporation established pursuant to this section 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
Agency governing the scope of their respective regulatory
authorities shall apply to the corporation, as if the cor-
poration were a Nuclear Regulatory Commission licensee.
‘‘(c) LEGAL STATUS OF PRIVATE CORPORATION.—
‘‘(1) NOT FEDERAL AGENCY.—The corporation
established pursuant to this section shall not be an
agency, instrumentality, or establishment of the
United States Government and shall not be a Gov-
ernment corporation or Government-controlled cor-
poration.
‘‘(2) 
NO
RECOURSE
AGAINST
UNITED
STATES.—Obligations of the corporation established
pursuant to this section shall not be obligations of,
or guaranteed as to principal or interest by, the Cor-
poration 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 this section.
‘‘(d) 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 public pursuant to such public offering.’’.
(b) OWNERSHIP LIMITATIONS.—Chapter 25 of title
II (as amended by subsection (a)) is amended by adding
at the end the following new section:
‘‘SEC. 1504. OWNERSHIP LIMITATIONS.
‘‘(a) In the event that the privatization is imple-
mented by means of a public offering, during a period of
3 years beginning on the privatization date, no person, di-
rectly or indirectly, may acquire or hold securities rep-
resenting more than 10 percent of the total votes of all
outstanding voting securities of the Corporation.
‘‘(b) 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)(1) In the event that the privatization is imple-
mented by means of a public offering and notwithstanding
any other provision of law which has the effect of restrict-
ing the authority of the Securities and Exchange Commis-
sion to prescribe regulations, the Commission shall pre-
scribe regulations which limit—
‘‘(A) the extent to which inside persons can
benefit from such privatization by reason of their
being inside persons; and
‘‘(B) the amount of control inside persons can
acquire over the Corporation by reason of the privat-
ization.
‘‘(2) For purposes of this subsection—
‘‘(A) the term ‘Commission’ means the Securi-
ties and Exchange Commission; and
‘‘(B) ‘inside person’ means—
‘‘(i) any individual who is a director, offi-
cer, employee, or agent of the Corporation at
any time during the period beginning 1 year be-
fore the date of the enactment of this section
and ending at such time after the first shares
of the Corporation are offered to the public as
the Commission determines to be appropriate to
carry out the purposes of this subsection; and
‘‘(ii) any other person associated with any
individual described in clause (i) or any group
of persons which includes any such individual.
‘‘(3) The regulations prescribed by the Commission
pursuant to paragraph (1) shall include the following: