I
106TH CONGRESS
2D SESSION
H. R. 4883
To authorize and direct the maintenance of a reliable and economic uranium
enrichment, conversion, and mining industry, to assure the nuclear non-
proliferation objects of the United States, to provide for the deployment
of advanced uranium enrichment technology, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 18, 2000
Mr. STRICKLAND introduced the following bill; which was referred to the
Committee on Commerce
A BILL
To authorize and direct the maintenance of a reliable and
economic uranium enrichment, conversion, and mining
industry, to assure the nuclear non-proliferation objects
of the United States, to provide for the deployment of
advanced uranium enrichment technology, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘The Nuclear Fuel Reli-
ability Act of 2000’’.
SEC. 2. FINDINGS.
The Congress finds and declares that—
(1) in authorizing the privatization of USEC,
Congress recognized that the activities conducted by
USEC included many public purposes and therefore
directed that privatization only proceed on condition
that privatization—
(A) provides for the long-term viability of
the Corporation, provides for the continuation
by the Corporation of the operation of the De-
partment of Energy’s gaseous diffusion plants,
provides for the protection of the public interest
in maintaining a reliable and economical domes-
tic source of uranium mining, enrichment and
conversion services, and, to the extent not in-
consistent with such purposes, secures the max-
imum proceeds to the United States;
(B) not result in the Corporation being
owned, controlled, or dominated by an alien, a
foreign corporation, or a foreign government;
(C) not be inimical to the health and safety
of the public or the common defense and secu-
rity; and
(D) provide reasonable assurance that ade-
quate enrichment capacity will remain available
to meet the needs of the domestic electric utility
industry.
(2) In the period since privatization, it has be-
come evident that USEC, Inc. cannot assure the
protection and fulfillment of the public purposes that
were conditions and predicates to privatization.
USEC, Inc. has—
(A) announced that it will no longer pro-
vide for the continuation of both of the Depart-
ment of Energy’s gaseous diffusion plants and
will not deploy the low-cost AVLIS enrichment
technology that was a primary predicate for as-
suring its long term viability;
(B) engaged in activities, including the liq-
uidation of government provided inventories of
natural uranium and conversion services, that
impair the continued viability of the domestic
uranium conversion and mining industry;
(C) experienced increasing financial dif-
ficulties, including downgrade of its credit rat-
ing to below investment grade, and has indi-
cated that, in absence of additional Federal
support, it cannot deploy low cost enrichment
technology that will permit it to be competitive
in global markets;
(D) has undertaken management decisions,
such as the payment of dividends in excess of
earnings and the repurchase of its publicly
traded stock, that has consumed large amounts
of its cash flow which has jeopardized the pub-
lic interest in maintaining a reliable and eco-
nomical domestic source enrichment service;
and
(E) has sought up to $200,000,000 in pub-
lic assistance as a condition for continuing to
serve as the Executive Agent under the Russian
HEU Agreement, and failed to demonstrate
that it will meet the core public interest obliga-
tions which it accepted as a condition to privat-
ization.
(3) The fulfillment of the public interest pur-
poses set out in the USEC Privatization Act and the
Energy and Policy Act of 1992 requires that—
(A) the United States, through a govern-
ment owned corporation, should reassume direct
responsibility for the energy security and na-
tional security purposes heretofore entrusted to
USEC, Inc.;
for the day-to-day operations of USEE before acqui-
sition of USEC, Inc.
(10) URANIUM ENRICHMENT.—The term ‘‘ura-
nium enrichment’’ means the separation of uranium
of a given isotopic content into 2 components, 1 hav-
ing a higher percentage of fissile isotope and 1 hav-
ing a lower percentage.
(11) USEC.—The term ‘‘USEC’’ means the
United States Enrichment Corporation, a govern-
ment corporation established by the Energy Policy
Act of 1992, the reestablishment of which is pro-
vided for by this Act.
(12) USEC, INC.—The term ‘‘USEC Inc.’’
means the private corporation established pursuant
to the USEC Privatization Act, Public Law 104–
134.
(13) USEE.—The term ‘‘USEE’’ means the
United States Enrichment Enterprise, the newly cre-
ated government-owned corporation which will refed-
eralize USEC, Inc. and carry out the purposes of
this Act.
SEC. 4. PLAN TO RECAPTURE PUBLIC PURPOSES AND AS-
SETS.
(a) PLAN.—Within 90 days of the date of enactment
of this Act, the Transition Manager and the Secretary of
Energy, in consultation with the Secretary of State and
Secretary of the Treasury, shall prepare and present to
the President a plan for the reacquisition of 100 percent
of the stock or the net assets and liabilities of USEC, Inc.
The Secretary of Energy is authorized to secure the serv-
ices of an independent financial advisor, a transaction
manager, auditors, appraisers for valuation, and outside
legal counsel to assist in the development of the plan, the
performance of due diligence, and recommended pathways
for a transaction. The plan shall—
(1) identify and provide means to assure the
continued fulfillment of the public interest purposes
stated by Congress in the USEC Privatization Act
and Energy and Policy Act of 1992 in providing for
the privatization of USEC;
(2) recommend means to ensure that stock-
holders and creditors of USEC, Inc. will be entitled
to just compensation, not to exceed a 20 percent
premium to the market value of USEC, Inc.’s stock,
if it is traded on a listed exchange as of the date of
enactment of this Act;
(3) consider and analyze alternatives including
the use of tender offer and a negotiated transaction
with the Members of the Board of USEC, Inc., or
retaining the services of a third party, as a means
of effectuating the transaction;
(4) evaluate the option of exchanging Treasury
obligations for USEC, Inc. corporate debt obliga-
tions, as a means of providing just compensation for
creditors;
(5) propose legislation required for the refed-
eralization of USEC, Inc. for submission to the Con-
gress, GAO and the President;
(6) prepare a fair market valuation for acquisi-
tion, except that the amount of any bonuses, com-
pensation, or severance in excess of one year’s an-
nual base salary for officers and directors of USEC,
Inc. shall be deducted to arrive at a net asset value
or fair market value and shall not be included as a
liability to be assumed by USEE or the United
States and any such excess liabilities shall be de-
ducted from compensation due shareholders of
USEC, Inc.
Within 30 days of the date of enactment of this Act, the
President shall accept or modify the plan provided or di-
rect its revision for resubmission to the Office of the Presi-
dent within 30 days. Congress shall be notified imme-
diately upon approving the plan.
(b) PERIOD FOR CONGRESSIONAL REVIEW.—After
receiving the report under subsection (b), the Congress
shall have 30 days for review of the report and oversight
of the subject matter of the report.
(c) IMPLEMENTATION.—Upon the implementation of
the plan, the United States is authorized to take USEC,
Inc. and the Board of Directors of USEC, Inc. shall trans-
fer ownership of the stock and assets and obligations of
USEC, Inc., to USEE, the United States government cor-
poration established under section 6. The Executive Agen-
cy for the Russian HEU Agreement shall be transferred
to USEE at the time of transfer of ownership of USEC,
Inc., if it had not been placed within USEE earlier under
section 5.
(d) AUTHORIZATION OF EXPENDITURES.—For the
purposes of this section to transfer ownership of USEC,
Inc. and to execute USEE’s responsibilities under section
6, such sums as are necessary are authorized for deposit
in the United States Enrichment Enterprise Fund.
SEC. 5. RESUMPTION OF UNITED STATES CONTROL OVER
NATIONAL SECURITY PURPOSES.
(a) HEU AGREEMENT.—After USEE has been es-
tablished, the Secretary of Energy, in consultation with
the Secretary of State and the National Security Council,
is authorized to terminate the Executive Agent Agreement
between the United States and USEC, Inc.
(b) TRANSFER.—If USEC, Inc. is terminated as Ex-
ecutive Agent, the responsibilities for performance as the
Executive Agent for the Russian HEU Agreement shall
be transferred to USEE, a government-corporation estab-
lished pursuant to section 6.
(c) CONTRACTS.—
(1) USEE shall be authorized to purchase,
store, or sell enriched uranium acquired pursuant to
the Russian HEU Agreement, and to fulfill contrac-
tual obligations under that Agreement between
USEC, Inc. and Tenex, and shall be authorized to
negotiate new contracts with Tenex for the purchase
of down blended HEU under that Agreement if such
contract is in the public interest.
(2) SUSPENSION AGREEMENT.—Nothing herein
shall authorize USEE to enter into any arrangement
for the implementation of the Russian HEU Agree-
ment that would require the importation of non-
HEU derived enrichment services, conversion serv-
ices, or uranium or otherwise render necessary an
amendment to the Agreement Suspending the Anti
Dumping Investigation on Uranium from the Rus-
sian Federation or any other country.
(3) MATCHED
SALES.—USEE will provide
USEC, Inc. with the right to match any offer re-
ceived for the SWU until the date of the transfer of
ownership of USEC, Inc. or 18 months, whichever
is later.
(d) AUTHORIZATION OF EXPENDITURES.—For the
purposes of USEE implementing the Russian HEU
Agreement and carrying out purposes in this section, such
sums as necessary are authorized for deposit in the United
States Enrichment Enterprise Fund.
SEC. 6. ESTABLISHMENT, PURPOSES, POWERS, AND ORGA-
NIZATION OF CORPORATION.
(a) IN GENERAL.—Within 60 days of the date of en-
actment of this Act, there is established a body corporate
to be known as the United States Enrichment Enterprise.
(b) GOVERNMENT CORPORATION.—The Corporation
shall be established as a wholly owned Government cor-
poration subject to chapter 91 of title 31, United States
Code (commonly referred to as the Government Corpora-
tion Control Act), except as otherwise provided in this
title.
(c) FEDERAL AGENCY.—The Corporation shall be an
agency and instrumentality of the United States.
(d) CORPORATE OFFICES.—The Corporation shall
maintain an office for the service of process and papers
in the District of Columbia, and shall be deemed, for pur-
poses of venue in civil actions, to be a resident thereof.
The Corporation may establish offices in such other place
or places as it may deem necessary or appropriate in the
conduct of its business.
(e) PURPOSES OF THE CORPORATION.—
(1) To operate as a business enterprise on an
efficient basis, and to conduct the business as a self-
financing corporation after the deployment of ad-
vanced enrichment technology.
(2) To provide for the protection of the public
interest in maintaining a reliable and economical do-
mestic source of uranium mining, enrichment and
conversion services.
(3) To lease Department of Energy uranium
enrichment facilities, as needed, and to maintain the
continued operations of the gaseous diffusion plants
until advanced technology is successfully deployed,
and to lease DOE facilities at Portsmouth, Ohio or
Paducah, Kentucky for purposes of deploying ad-
vanced enrichment technology.
(4) To sell uranium and conversion services
from its inventories in a manner that will have no
material adverse impact on the domestic conversion
or mining industries, consistent with the restrictions
contained in the USEC Privatization Act. USEE
may also acquire uranium for uranium enrichment,
low-enriched uranium for resale, and highly enriched
uranium for conversion into low-enriched uranium,
as needed.
(5) To market and sell its enriched uranium
and uranium enrichment and related services to—
(A) the Department of Energy for main-
taining a strategic reserve of low enriched ura-
nium suitable for use by commercial nuclear re-
actors;
(B) for government purposes; and
(C) domestic and foreign persons.
(6) To conduct research and development as re-
quired to meet business objectives for the purposes
of identifying, evaluating, improving, testing and de-
ploying alternative technologies for uranium enrich-
ment.
(7) To comply with laws to protect the public
health, safety, and the environment.
(8) To continue at all times to meet the objec-
tives of ensuring the Nation’s common defense and
security, including abiding by United States laws
and policies concerning special nuclear materials and
nonproliferation of atomic weapons and other non-
peaceful uses of atomic energy.
(9) To take all other lawful actions in further-
ance of these purposes.
(f) POWERS OF THE CORPORATION.—In order to ac-
complish its purposes, the Corporation—
(1) shall, except as provided in this Act or other
applicable Federal law, have all the powers of a pri-
vate corporation incorporated under the District of
Columbia Business Corporation Act;
(2) shall have the priority of the United States
with respect to the payment of debts out of bank-
rupt, insolvent, and decedents’ estates;
(3) may obtain from the Administrator of Gen-
eral Services the services the Administrator is au-
thorized to provide agencies of the United States, on
the same basis as those services are provided to
other agencies of the United States;
(4) shall enrich uranium or acquire enriched
uranium (low-enriched uranium derived from highly
enriched uranium from the United States or Rus-
sia);
(5) may conduct, or provide for conducting,
those research, development, and deployment activi-
ties related to uranium enrichment and related proc-
esses and activities which the Corporation considers
necessary or advisable to maintain the Corporation
as a commercial enterprise operating on an efficient
basis; and
(6) may enter into transactions regarding ura-
nium, enriched uranium, or depleted uranium with—
(A) persons licensed under section 53, 63,
103, or 104 of Atomic Energy Act of 1954 in
accordance with the licenses held by those per-
sons, for as long as the Corporation considers
necessary or desirable;
(B) persons in accordance with, and within
the period of, an agreement for cooperation ar-
ranged under section 123 of the Atomic Energy
Act of 1954; or
(C) persons otherwise authorized by law to
enter into such transactions;
(7) shall sell to the Department of Energy as
provided in this Act the amounts of uranium enrich-
ment and related services that the Department de-
termines from time to time are required for it to—
(A) carry out Presidential directions and
authorizations; and
(B) conduct other Department programs.
SEC. 7. BOARD OF DIRECTORS.
(a) IN GENERAL.—The powers of the Corporation
are vested in the Board of Directors.
(b) APPOINTMENT.—The Board of Directors shall
consist of 7 individuals, to be appointed by the President
by and with the advice and consent of the Senate. The
President shall designate a Chairman of the Board from
among members of the Board.
(c) QUALIFICATIONS.—Members of the Board shall
be citizens of the United States. No member of the Board
shall be an employee of the Corporation or have any direct
financial relationship with the Corporation other than that
of being a member of the Board.
(d) TERMS.—
(1) IN GENERAL.—Except as provided in para-
graph (2), members of the Board shall serve 5 year
terms or until the election of a new Board of Direc-
tors, whichever comes first.
(2) INITIAL MEMBERS.—Of the members first
appointed to the Board—
(A) 2 shall be appointed for a 1-year term;
(B) 2 shall be appointed for a 2-year term;
(C) 1 shall be appointed for a 3-year term;
(D) 1 shall be appointed for a 4-year term;
and
(E) 1 shall be appointed for a 5-year term.
The Board shall be composed of at least one person with
extensive background in nuclear non proliferation policy
or relations with Russia; one person with in-depth knowl-
edge of the uranium enrichment industry; one person who
resides in the state of Kentucky; one person who resides
in the state of Ohio; and one representative or designee
of a union representing workers at USEE’s facilities. At
least 2 Board representatives should have expertise in
technology development, chemistry, physics, or engineer-
ing.
(3) REAPPOINTMENT.—Members of the Board
may be reappointed by the President, by and with
the advice and consent of the Senate.
(e) VACANCIES.—Upon the occurrence of a vacancy
on the Board, the President by and with the advice and
consent of the Senate shall appoint an individual to fill
such vacancy for the remainder of the applicable term.
(f) MEETINGS AND QUORUM.—The Board shall meet
at any time pursuant to the call of the Chairman and as
provided by the bylaws of the Corporation, but not less
than quarterly. Five voting members of the Board shall
constitute a quorum. A majority of the Board shall adopt
and from time to time may amend bylaws for the oper-
ation of the Board.
(g) POWERS.—The Board shall be responsible for
general management of the Corporation and shall have the
same authority, privileges, and responsibilities as the
board of directors of a private corporation incorporated
under the District of Columbia Business Corporation Act.
(h) COMPENSATION.—Members of the Board shall
serve on a part-time basis and shall receive per diem, when
engaged in the actual performance of Corporation duties,
plus reimbursement for travel, subsistence, and other nec-
essary expenses incurred in the performance of their du-
ties.
(i) MEMBERSHIP
OF
SECRETARY
OF
ENERGY,
TREASURY AND STATE.—The President may appoint the
Secretary of the Treasury, the Secretary of State, and the
Secretary of Energy, or the designee of such a Secretary,
to serve as a nonvoting, ex-officio member of the Board.
(j) CONFLICT OF INTEREST REQUIREMENTS.—No
director, officer, or other management level employee of
the Corporation may have a financial interest in any cus-
tomer, contractor, or competitor of the Corporation or in
any business that may be adversely affected by the success
of the Corporation.
SEC. 8. EMPLOYEES.
(a) APPOINTMENT.—The Board shall appoint such
officers and employees as are necessary for the transaction
of its business. Within 30 days of the date of enactment
of this Act, the President shall appoint a Transition Man-
ager, consistent with section 16, until the Board of Direc-
tors can select officers and senior management.
(b) COMPENSATION, DUTIES, AND REMOVAL.—The
Board shall, consistent with section 5301 of title 5, United
States Code, fix the compensation of all officers and em-
ployees of the Corporation, define their duties, and provide
a system of organization to fix responsibility and promote
efficiency. Any officer or employee of the Corporation may
be removed in the discretion of the Board, except where
a process for arbitrating dismissals is provided in a collec-
tive bargaining agreement.
(c) APPLICABLE
CRITERIA.—Officers and senior
management employees shall be appointed, promoted, and
assigned on the basis of merit and fitness, and other per-
sonnel actions shall be consistent with the principles of
fairness and due process consistent with the principles of
section 2301(b) of title 5, United States Code, relating
to merit system principles.
(d) TREATMENT OF PERSONS EMPLOYED PRIOR TO
REFEDERALIZATION.—Upon transfer of ownership of
USEC, Inc., USEE or a contractor to USEE shall offer
non-management employees of USEC, Inc. employment to
the extent that their jobs still exist, or they have rights
to other employment under the terms of a collective bar-
gaining agreement.
(e) COMPENSATION, ETC.—Excluding officers and
senior management, the compensation, benefits, and other
terms and conditions of employment in effect immediately
prior to the refederalization date shall remain in effect for
120 days after the date of refederalization, after which
the Board of Directors shall establish personnel policies.
(f) EMPLOYEE PROTECTIONS
FOR CURRENT
AND
FORMER
EMPLOYEES
AT
THE
GASEOUS
DIFFUSION
PLANTS.—
(1) IN GENERAL.—It is the purpose of this sub-
section to ensure that the establishment and oper-
ations of the Corporation pursuant to this section
shall not result in any adverse effects on the employ-
ment rights, wages, or benefits of employees at the
gaseous diffusion plants, that are operated, directly
or under contract, in the performance of the func-
tions vested in the Corporation.
(2) APPLICABILITY OF EXISTING COLLECTIVE
BARGAINING AGREEMENTS.—Any employer (includ-
ing the Corporation, or a contractor) engaged in the
management, operations and security at a facility
described in paragraph (1) shall abide by the terms
of a collective bargaining agreement in effect on the
date of transfer of ownership of USEC, Inc., at each
individual facility until the date on which a new bar-
gaining agreement is signed. If no agreement is in
effect, the terms and conditions of the expired agree-
ment shall remain in effect until the parties conclude
a new collective bargaining agreement.
(3) APPLICABILITY OF LABOR LAWS.—Notwith-
standing any other provision of law, the employees
of USEE or a contractor to USEE shall be consid-
ered employees subject to the National Labor Rela-
tions Act (29 U.S.C. 151 et seq.), and USEE shall
be considered an employer subject to the National
Labor Relations Act, the Employee Retirement In-
come Security Act of 1974, the Fair Labor Stand-
ards Act of 1938, and the Americans with Disabil-
ities Act of 1990.
(4) TRANSFER OF BENEFITS.—Refederalization
shall not diminish the accrued, vested pension bene-
fits of employees of USEC, Inc. who participate in
defined benefit plans. USEC, Inc.’s pension plans
and retiree health care benefit plans and all of the
assets held therein by these plans, including any ac-
crued surplus, shall be transferred to USEE or a
contractor to USEE immediately upon the transfer
of ownership of USEC, Inc. USEE or a contractor
to USEE shall assume all liabilities for payment of
pensions and retiree health care benefits for eligible
employees who separated from employment with
USEC, Inc. prior to the transfer of ownership of
USEC, Inc. Employees who transfer from USEC,
Inc. to USEE shall retain accrued service credits for
purposes of vacation, seniority, 401(k) benefit plans,
retiree health care benefits, and pensions. USEC,
Inc. shall transfer the assets of all employee benefits
plans to USEE or a contractor to USEE imme-
diately upon the transfer of ownership of USEC,
Inc. including 401(k) savings plans.
(5) GAS CENTRIFUGE ENRICHMENT PLANTS.—
USEE or contractors retained by USEE shall, when
hiring employees to manufacture or operate and
maintain gas centrifuge or other advanced enrich-
ment technology at the Department of Energy’s
Portsmouth, Ohio or Paducah, Kentucky facility,
provide a right of first refusal to qualified or
qualifiable individuals who are displaced or facing
displacement from employment at the gaseous diffu-
sion plants. Costs for training and retraining shall
be provided through the Department of Energy Of-
fice of Worker and Community Transition. USEE or
its contractor performing operations, maintenance,
or security at a gas centrifuge facility shall, to the
extent permissible, provide substantially equivalent
wages and benefits to operations, maintenance, and
security employees, assure pension and retiree health
care benefit continuity, and recognize the incumbent
bargaining representative for operations, mainte-
nance, or security work to the extent permissible by
law.
(6) PRIVATE RIGHT OF ACTION.—Any suit al-
leging a violation of any provision of subsections (d)
and (e), 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 jurisdiction over the parties, without regard
to the amount in controversy or the citizenship of
the parties. Any suit alleging a violation of an agree-
ment 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).
SEC. 9. URANIUM TRANSFERS AND SALES.
(a) CONVERSION COMPONENT.—Section 3112(b)(8)
of the USEC Privatization Act (42 U.S.C. 2297h–
10(b)(8)) is amended to read as follows:
‘‘(8) The conversion component of the uranium
hexafluoride delivered to the Russian Executive Agent
under paragraph (3) or auctioned pursuant to paragraph
(4) shall be subject to the restrictions of paragraph (5)
as 
applied 
to 
equivalent 
amounts 
of 
uranium
hexafluoride.’’.
(b) SALES PRICES.—Section 3112(c) of the USEC
Privatization Act (42 U.S.C. 2297h–10(c)) is amended by
adding at the end the following:
‘‘(3) Any or all U308 or conversion services contained
in uranium hexafluoride transferred under paragraph (1)
shall be sold at prices not less than the average domestic
fair market value of such products. This value is deemed
to be equivalent to the average domestic cost of production
as of the date of enactment of this paragraph. Where a
combination of such products is to be sold as in uranium
hexafluoride or enriched uranium product, the prices allo-
cated to each of the components in the respective trans-
action shall be in the same ratio as the ratio of United
States published spot market prices for U308, conversion
and separative work units, as applicable, as prevailed at
the date of enactment of this paragraph.’’.
(c) DOMESTIC
FAIR
MARKET
VALUE.—Section
3112(d)(2) of the USEC Privatization Act (42 U.S.C.
2297h–10(d)(2)) is amended by striking ‘‘, and’’ at the
end of subparagraph (B) and inserting a comma, by strik-
ing the period at the end of subparagraph (C) and insert-
ing ‘‘, and’’, and by adding at the end the following:
‘‘(D) the price at which the material is sold
shall not be less than the domestic fair market value
prevailing as of the date of enactment of this sub-
paragraph. This value is deemed to be the average
cost of production as of such date. If this material
is sold as uranium hexafluoride or enriched uranium
product, the component prices shall be allocated in
the same ratio as prevailed in published prices as of
such date.’’.
SEC. 10. AUDITS.
(a) INDEPENDENT AUDITS.—
(1) IN GENERAL.—The financial statements of
the Corporation shall be prepared in accordance with
generally accepted accounting principles and shall be
audited annually by an independent certified public
accountant in accordance with auditing standards
issued by the Comptroller General. Such auditing
standards shall be consistent with the private sec-
tor’s generally accepted auditing standards.
(2) REVIEW BY GAO.—The Comptroller General
may review any audit of the Corporation’s financial
statements conducted under paragraph (1). The
Comptroller General shall report to the Congress
and the Corporation the results of any such review
and shall include in such report appropriate rec-
ommendations.
(b) GAO AUDITS.—
(1) IN
GENERAL.—The Comptroller General
may audit the financial statements of the Corpora-
tion for any year in the manner provided in sub-
section (a)(1).
(2) REIMBURSEMENT BY CORPORATION.—The
Corporation shall reimburse the Comptroller General
for the full cost of any audit conducted under this
subsection, as determined by the Comptroller Gen-
eral.
(c) AVAILABILITY OF BOOKS AND RECORDS.—All
books, accounts, financial records, reports, files, papers,
and other property belonging to or in use by the Corpora-
tion and its auditor that the Comptroller General con-
siders necessary to the performance of any audit or review
under this section shall be made available to the Comp-
troller General.
(d) TREATMENT OF GAO AUDITS.—Activities the
Comptroller General conducts under this section shall be
in lieu of any other audit of the financial transactions of
the Corporation the Comptroller General is required to
make under chapter 91 of title 31, United States Code,
or other law.
SEC. 11. ANNUAL REPORTS.
(a) IN GENERAL.—The Corporation shall prepare
and submit an annual report of its activities to the Presi-
dent and the Congress. This report shall contain—
(1) a general description of the Corporation’s
operations;
(2) a summary of the Corporation’s operating
and financial performance, including an explanation
of the decision to pay or not pay dividends;
(3) copies of audit reports;
(4) the information required under regulations
issued under section 13 of the Securities Exchange
Act of 1934 (15 U.S.C. 78m); and
(5) an identification and assessment of any im-
pairment of capital or ability of the Corporation to
comply with this Act.
(b) DEADLINE.—The report shall be completed not
later than 120 days following the close of each of the Cor-
poration’s fiscal years and shall accurately reflect the fi-
nancial position of the Corporation at fiscal year end.
SEC. 12. ACCOUNTS.
(a) ESTABLISHMENT OF UNITED STATES ENRICH-
MENT ENTERPRISE FUND.—There is established in the
Treasury of the United States a revolving fund, to be
known as the ‘‘United States Enrichment Enterprise
Fund’’, which shall be available to the Corporation, with-
out need for further appropriation and without fiscal year
limitation, for carrying out its purposes, functions, and
powers, and which shall not be subject to apportionment
under subchapter II of chapter 15 of title 31, United
States Code. Such fund shall accrue interest on balances
by investing in short term debt securities of the United
States.
(b) TRANSFER OF UNEXPENDED BALANCES.—On
the transfer date, all cash reserves and short term debt
instruments on the books of and owned by USEC, Inc.
shall be deposited in the Fund.
SEC. 13. AUTHORITY TO ISSUE DEBT OBLIGATIONS FOR DE-
PLOYMENT OF NEW URANIUM ENRICHMENT
FACILITIES.
(a) ISSUANCE.—
(1) IN GENERAL.—The Corporation may issue
and sell bonds, notes, and other evidences of indebt-
edness (collectively referred to in this title as
‘bonds’), for the purpose of constructing new ura-
nium enrichment facilities or conducting directly re-
lated preconstruction activities.
(2) USE OF REVENUES.—The Corporation may
pledge and use its revenues for payment of the prin-
cipal of and interest on its bonds, for their purchase
or redemption, and for other purposes incidental to
these functions, including creation of reserve funds
and other funds that may be similarly pledged and
used.
(3) AGREEMENTS WITH HOLDERS AND TRUST-
EES.—The Corporation may enter into binding cov-
enants with the holders and trustees of its bonds
with respect to—
(A) the establishment of reserve and other
funds;
(B) stipulations concerning the subsequent
issuance of bonds; and
(C) other matters not inconsistent with
this Act; that the Corporation determines nec-
essary or desirable to enhance the marketability
of the bonds.
(b) TERMS AND CONDITIONS.—
(1) NEGOTIABLE; MATURITY.—Bonds issued by
the Corporation under this section shall be nego-
tiable instruments unless otherwise specified in the
bond and shall mature not more than 50 years after
their date of issuance.
(2) ROLE OF SECRETARY OF THE TREASURY.—
(A) RIGHT
OF
DISAPPROVAL.—The Cor-
poration may set the terms and conditions of
bonds issued under this section, subject to dis-
approval of such terms and conditions by the
Secretary of the Treasury within 5 days after
the Secretary of the Treasury is notified of the
following terms and conditions of the bonds:
(i) Their forms and denominations.
(ii) The times, amounts, and prices at
which they are sold.
(iii) Their rates of interest.
(iv) The terms at which they may be
redeemed by the Corporation before matu-
rity.
(v) The priority of their claims on the
Corporation’s net revenues with respect to
principal and interest payments.
(vi) Any other terms and conditions.
(B) INAPPLICABILITY OF RIGHT TO PRE-
SCRIBE TERMS.—Section 9108(a) of title 31,
United States Code, shall not apply to the Cor-
poration.
(d) INAPPLICABILITY
OF
SECURITIES
REQUIRE-
MENTS.—The Corporation shall be considered an execu-
tive department of the United States for purposes of sec-
tion 3(c) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(c)).
(e) APPLICABILITY OF FFB.—The Corporation may
issue or sell bonds to the Federal Financing Bank, with
the concurrence of the Secretary of Energy and the Sec-
retary of Treasury, for purposes of purchasing equipment
or constructing uranium enrichment facilities in Ports-
mouth, Ohio and Paducah, Kentucky.
SEC. 14. EXEMPTION FROM TAXATION AND PAYMENTS IN
LIEU OF TAXES.
(a) EXEMPTION FROM TAXATION.—In order to
render financial assistance to those States and localities
in which the facilities of the Corporation are located, the
Corporation shall, beginning in fiscal year 2001, make
payments to State and local governments as provided in
this section. These payments shall be in lieu of any and
all State and local taxes on the real and personal property
of the Corporation. All property of the Corporation is ex-
pressly exempted from taxation in any manner or form
by any State, county, or other local government entity in-
cluding State, county, or other local government sales tax.
(b) PAYMENTS IN LIEU OF TAXES.—Beginning in
fiscal year 2001, the Corporation shall make annual pay-
ments, in amounts determined by the Corporation to be
fair and reasonable, to the State and local governmental
agencies having tax jurisdiction in any area where facili-
ties of the Corporation are located. In making these deter-
minations, the Corporation shall be guided by the fol-
lowing criteria:
(1) The Corporation shall take into account the
customs and practices prevailing in the area with re-
spect to appraisal, assessment, and classification of
industrial property and any special considerations
extended to large-scale industrial operations.
(2) The payment made to any taxing authority
for any period shall not be less than the payments
that would have been made to the taxing authority
for the same period by USEC, Inc. with respect to
property that has been transferred to USEE and
that would have been attributable to the ownership,
management, operation, and maintenance of the De-
partment’s uranium enrichment facilities, applying
the laws and policies prevailing immediately prior to
the transition date.
(c) TIME OF PAYMENTS.—Payments shall be made
by the Corporation at the time when payments of taxes
by taxpayers to each taxing authority are due and payable.
(d) DETERMINATION OF AMOUNT DUE.—The deter-
mination by the Corporation of the amounts due under
this section shall be final and conclusive.
SEC. 15. COOPERATION WITH OTHER AGENCIES.
The Corporation may request to use on a reimburs-
able basis the available services, equipment, personnel, and
facilities of agencies of the United States, and on a similar
basis may cooperate with such agencies in the establish-
ment and use of services, equipment, and facilities of the
Corporation. The Corporation may confer with and avail
itself of the cooperation, services, records, and facilities
of State, territorial, municipal, or other local agencies.
SEC. 16. APPLICABILITY OF CERTAIN FEDERAL LAWS.
(a) ANTITRUST LAWS.—The Corporation shall con-
duct its activities in a manner consistent with the policies
expressed in the following antitrust laws:
(1) The Sherman Act (15 U.S.C. 1–7).
(2) The Clayton Act (15 U.S.C. 12–27).
(3) Sections 73 and 74 of the Wilson Tariff Act
(15 U.S.C. 8 and 9).
(b) ENVIRONMENTAL LAWS.—The Corporation shall
be subject to, and comply with, all Federal and State,
interstate, and local environmental laws and requirements,
both substantive and procedural, in the same manner, and
to the same extent, as any person who is subject to such
laws and requirements. For purposes of enforcing any
such law or substantive or procedural requirements (in-
cluding any injunctive relief, administrative order, or ad-
ministrative penalty or fine) against the Corporation, the
United States expressly waives any immunity otherwise
applicable to the Corporation. For the purposes of this
subsection, the term ‘‘person’’ means an individual, trust,
firm, joint stock company, corporation, partnership, asso-
ciation, State, municipality, or political subdivision of a
State.
(c) OSHA REQUIREMENTS.—Notwithstanding sec-
tions 3(5), 4(b)(1), and 19 of the Occupational Safety and
Health Act of 1970 (29 U.S.C. 652(5), 653(b)(1), and
668)), the Corporation shall be subject to, and comply
with, such Act and all regulations and standards promul-
gated thereunder in the same manner, and to the same
extent, as an employer is subject to such Act. For the pur-
poses of enforcing such Act (including any injunctive re-
lief, administrative order, or civil, administrative, or crimi-
nal penalty or fine) against the Corporation, the United
States expressly waives any immunity otherwise applicable
to the Corporation.
(d) LABOR STANDARDS.—The Act of March 3, 1931
(known as the Davis-Bacon Act) (40 U.S.C. 276a et seq.)
and the Service Contract Act of 1965 (41 U.S.C. 351 et
seq.) shall apply to the Corporation. All laborers and me-
chanics employed on the construction, alteration, or repair
of projects funded, in whole or in part, by the Corporation
shall be paid wages at rates not less than those prevailing
on projects of a similar character in the locality as deter-
mined by the Secretary of Labor in accordance with such
Act of March 3, 1931. The Secretary of Labor shall have,
with respect to the labor standards specified in this sub-
section, the authority and functions set forth in Reorga-
nization Plan Numbered 14 of 1950 (15 F.R. 3176, 64
Stat. 1267) and the Act of June 13, 1934 (40 U.S.C.
276c). Determinations made under the Act of March 3,
1931, shall not be used by USEE to determine whether
to subcontract contract or self perform work activities, nor
shall such determination be used to allocate or select any
workforce for any covered work.
(e) ENERGY
REORGANIZATION
ACT
REQUIRE-
MENTS.—The Corporation is subject to the provisions of
section 210 of the Energy Reorganization Act of 1974 (42
U.S.C. 5850) to the same extent as an employer subject
to such section, and, with respect to the operation of the
facilities leased by the Corporation, section 206 of the En-
ergy Reorganization Act of 1974 (42 U.S.C. 5846) shall
apply to the directors and officers of the Corporation.
(f) EXEMPTION FROM FEDERAL PROPERTY RE-
QUIREMENTS.—The Corporation shall not be subject to
the Federal Property and Administrative Services Act of
1949 (41 U.S.C. 471 et seq.).
SEC. 17. CONTROL OF INFORMATION.
(a) IN GENERAL.—Except as provided in subsection
(b), the Corporation may protect trade secrets and com-
mercial or financial information to the same extent as a
privately owned corporation.
(b) OTHER APPLICABLE LAWS.—Section 552 of title
5, United States Code, shall apply to the Corporation, and
such information shall be subject to the applicable provi-
sions of law protecting the confidentiality of trade secrets
and business and financial information, including section
1905 of title 18, United States Code. Transcripts of the
Board of Directors’ meetings shall be made available to
the public in a public reading room at the USEE head-
quarters and upon request consistent with section 552 of
title 5, United States Code.
SEC. 18. TRANSITION.
(a) TRANSITION MANAGER.—Within 30 days after
the date of the enactment of this Act, the President shall
appoint a Transition Manager, who shall serve at the
pleasure of the President until a quorum of the Board has
been appointed and confirmed by the United States Sen-
ate in accordance with section 7. The Transition Manager
shall be paid at the same rate as is paid a member of
the Cabinet under section 5312 of title 5, United States
Code, and shall then serve at the pleasure of the Board.
(b) POWERS.—
(1) IN
GENERAL.—Until a quorum of the
Board has qualified, the Transition Manager shall
exercise the powers and duties of the Board.
SEC. 19. MARKETING AND CONTRACTING AUTHORITY.
(a) EXCLUSIVE MARKETING AGENT.—USEE shall
act as the exclusive marketing agent on behalf of the
United States Government for entering into contracts for
providing enriched uranium (including low-enriched ura-
nium derived from highly enriched uranium) and uranium
enrichment and related services. The Department may not
market enriched uranium (including low-enriched uranium
derived from highly enriched uranium) or uranium enrich-
ment and related services, after the transition date.
(b) TRANSFER OF CONTRACTS.—
(1) IN GENERAL.—Except as provided in para-
graph (2), all contracts, agreements, and leases be-
tween the Energy Department and USEC, Inc. in-
cluding all uranium enrichment contracts and power
purchase contracts, that have been executed before
the transition date and that relate to uranium en-
richment and related services shall transfer to the
Corporation.
(2) NONTRANSFERABLE POWER CONTRACTS.—
If the Secretary of Energy determines that a power
purchase contract executed by the Department prior
to the transfer of ownership of USEC, Inc. date can-
not be transferred under its terms, the Secretary
may continue to receive power under the contract
and resell such power to the Corporation at cost.
(c) SALES OF SERVICES.—The USEE may only sell
uranium and conversion services from its inventories in
a manner that will have no material adverse impact on
the domestic conversion or mining industries, consistent
with the restrictions contained in the USEC Privatization
Act.
SEC. 20. PRICING.
(a) SERVICES PROVIDED
TO COMMERCIAL CUS-
TOMERS.—The Corporation shall establish prices for its
products, materials, and services provided to customers
other than the Department on a basis that will allow it
to be competitive in the marketplace for such services.
(b) SERVICES PROVIDED TO DOE.—The Corporation
shall charge prices to the Department for uranium enrich-
ment services provided on a basis that will allow it to re-
cover its costs, on a yearly basis, for providing products,
materials, and services.
SEC. 20. LEASING OF ENRICHMENT FACILITIES OF DEPART-
MENT.
(a) IN GENERAL.—The Corporation shall lease the
Paducah Gaseous Diffusion Plant in Paducah, Kentucky,
the Portsmouth Gaseous Diffusion Plant in Piketon, Ohio,
and related property of the Department, until January 1,
2005. Thereafter, the Corporation shall have the exclusive
option to lease such facilities and related property for ad-
ditional periods.
(b)(1) TERMS OF LEASE.—The Corporation and the
Energy Department shall set mutually agreeable terms for
a lease under subsection (a), including specifying annual
payments to the Department by the Corporation for the
lease of facilities, buildings, structures, and equipment.
The amount of annual payments shall be equal to the cost
incurred by the Department in administering the lease and
providing services related to the lease to USEE (excluding
depreciation and imputed interest on original plant invest-
ments in the Department’s gaseous diffusion plants and
costs under subsection (d)).
(2) GAS CENTRIFUGE ENRICHMENT PLANT.—The
Department of Energy is authorized, subject to conditions
contained in this Act, to enter into a lease for the Depart-
ment of Energy’s GCEP facilities at Portsmouth, Ohio or
other buildings, land, or structures at the Paducah, Ken-
tucky facility for purposes of deploying centrifuge or other
advanced enrichment technology. The Secretary of Energy
shall provide that, after consultation with Community
Reuse Organizations, affected employee representatives,
and local governments, that the terms of such lease shall
require USEE, or its contractors or DOE’s contractors
to provide a right of first refusal to those workers who
are displaced from employment at the gaseous diffusion
plants.
(c) EXCLUSION OF FACILITIES FOR PRODUCTION OF
HIGHLY ENRICHED URANIUM.—Subsection (a) shall not
apply to Department facilities necessary for the produc-
tion of highly enriched uranium. The Secretary may grant
to 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, environmental response actions, or
corrective actions with respect to conditions existing before
July 28, 1998, shall remain the sole responsibility of the
Department of Energy.
(e) ENVIRONMENTAL AUDIT.—The Secretary of En-
ergy, in consultation with the Administrator of the Envi-
ronmental Protection Agency, shall conduct a comprehen-
sive environmental audit identifying environmental condi-
tions that will remain the responsibility of the Department
of Energy pursuant to subsection (d) after the transfer
of ownership of USEC, Inc. Such audit shall be completed
no later than 180 days after the transfer of ownership of
USEC, Inc.
(f) TREATMENT UNDER PRICE-ANDERSON PROVI-
SIONS.—Any lease executed between the Secretary and the
Corporation under this section shall be deemed to be a
contract for purposes of section 170(d) of the Atomic En-
ergy Act of 1954.
(g) WAIVER OF EIS REQUIREMENT.—The execution
of the lease by the Corporation and the Department shall
not be considered a major Federal action significantly af-
fecting the quality of the human environment for purposes
of section 102 of the National Environmental Policy Act
of 1969 (42 U.S.C. 4332).
SEC. 21. CAPITAL STRUCTURE OF CORPORATION.
(a) CAPITAL STOCK.—
(1) ISSUANCE TO SECRETARY OF THE TREAS-
URY.—The Corporation shall issue capital stock.
Such stock shall represent an equity investment
equal to the net valuation of the corporation at the
time of the transfer of ownership of USEC, Inc. The
Secretary of the Treasury shall hold such stock for
the United States, except that all rights and duties
pertaining to management of the Corporation shall
remain vested in the Board.
(2) RESTRICTION ON TRANSFERS OF STOCK BY
UNITED STATES.—The capital stock of the Corpora-
tion shall not be sold, transferred, or conveyed by
the United States.
(3) ANNUAL ASSESSMENT.—The Secretary of
the Treasury shall annually assess the value of the
stock held by the Secretary under paragraph (1) and
submit to the Congress a report setting forth such
value. The annual assessment of the Secretary shall
be subject to review by an independent auditor.
(b) PAYMENT
OF DIVIDENDS.—The Corporation
may, at the discretion of the Board of Directors, pay into
miscellaneous receipts of the Treasury of the United
States or such other fund as is provided by law, dividends
on the capital stock, out of earnings of the Corporation,
as a return on the investment represented by such stock
if such funds are not required for the projected operations
of USEE.
(c) PATENTS OF THE ENERGY DEPARTMENT.—The
Corporation may at any time apply to the Department of
Energy for a patent license for the use of an invention
or discovery useful in the production or utilization of spe-
cial nuclear material or atomic energy covered by a patent
when the patent has not been declared to be affected with
the public interest and when use of the patent is within
the Corporation’s authority.
SEC. 22. AUTHORITY TO CONDUCT HOT STANDBY AND
STRATEGIC RESERVE ACTIVITIES ON BEHALF
OF THE UNITED STATES.
(a) HOT STANDBY.—In the event that a gaseous dif-
fusion plant is closed, the Department of Energy is au-
thorized to contract with USEE to operate gaseous diffu-
sion plants on hot standby, in order to assure reliability
of enrichment capacity. Subject to appropriations, the De-
partment of Energy is authorized to expend $100,000,000
per year to carry out this activity until September 30,
2005.
(b) STRATEGIC SWU RESERVE.—The Department of
Energy is directed to assess the long term needs of the
domestic nuclear utility industry with respect to low en-
riched uranium, and to establish adequate strategic re-
serves to assure reliable supply in the event a uranium
enrichment plant is closed and the United States is de-
pendent upon only one gaseous diffusion plant. Such sup-
ply shall be sufficient to cover interruptions of 100 percent
of United States demand and 100 percent of United
States obligations to any other country under the provi-
sions of the Nuclear Nonproliferation Act of 1978 until
new uranium enrichment technology has been deployed.
The Department is authorized to contract with USEE to
purchase at cost the SWU delivered under the Russian
HEU Agreement, at prices to be determined through an
arms length transaction between the parties, and contract
with USEE to provide blend down services for highly en-
riched uranium for this strategic reserve.
SEC. 23. AUTHORITY TO ENTER INTO SUBLEASES FOR PUR-
POSES OF ECONOMIC DEVELOPMENT.
The USEE is authorized to enter into subleases with
Community Reuse Organization for the re-use and rede-
velopment of property owned by the Department of En-
ergy and leased by USEE at the Portsmouth Gaseous Dif-
fusion Plant and Paducah Gaseous Diffusion Plant. Such
subleases shall be subject to the approval of the Secretary
of Energy.
SEC. 24. LIABILITY.
No civil actions may be brought in any court against
any Federal official for any acts arising out of the refed-
eralization of USEC, Inc., except with respect to Federal
securities laws or violations of title 18, United States
Code.
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