ties are attributable to a number of factors. Among
these is inefficient management by the Department
at headquarters and at the Defense Nuclear Facili-
ties, including outmoded contracting procedures,
lack of competition, cumbersome bureaucratic proc-
esses, and the lack of a clear chain of command. All
of these things have contributed to confusion and in-
efficiency at many Defense Nuclear Facilities.
(5) Internal orders issued by the Department of
Energy often hinder compliance with environmental
laws and add unnecessary cost to environmental res-
toration.
(6) Regulatory requirements applicable to De-
fense Nuclear Facilities can be complex and, at
times, redundant. Frequently, the Department is ac-
countable to several regulatory agencies.
(7) Cleanup decisions are often made without
consideration of the future land uses.
(b) PURPOSES.—The purposes of this Act are to re-
quire significant regulatory reform measures, and to re-
quire that Defense Nuclear Facilities be managed more
efficiently.
SEC. 3. DEFINITIONS.
For purposes of this Act:
(1) The term ‘‘adjoining State’’ means any
State other than a host State, the border of which
is located within 50 miles of a Defense Nuclear Fa-
cility.
(2) The term ‘‘Defense Nuclear Facility’’ means
a former or current Defense nuclear production fa-
cility now owned and managed by the Department of
Energy.
(3) The term ‘‘Department’’ means the Depart-
ment of Energy.
(4) The term ‘‘environmental agreement’’
means an agreement, including an interagency
agreement, between the Department of Energy and/
or the Environmental Protection Agency that sets
forth requirements and schedules for achieving com-
pliance with Federal or State environmental laws.
(5) The term ‘‘Hanford Reservation’’ means the
Defense Nuclear Facility located in southeastern
Washington owned and managed by the Department
of Energy.
(6) The term ‘‘host State’’ means a State with
a Defense Nuclear Facility located within its bound-
aries that is subject to this Act.
(7) The term ‘‘interagency agreement’’ means
an agreement entered into pursuant to the provi-
sions of section 120(e) of the Comprehensive Envi-
ronmental, Response, Compensation, and Liability
Act of 1980 (42 U.S.C. 9620(e)).
(8) The term ‘‘Land Use Council’’ means, with
respect to a Defense Nuclear Facility, a congression-
ally chartered council with the authority to develop
a future land use plan at such facility.
(9) The term ‘‘Secretary’’ means the Secretary
of Energy.
(10) The term ‘‘Site Manager’’ means a Presi-
dentially appointed Department of Energy official
delegated with full authority from the Secretary to
oversee and direct all operations at a Defense Nu-
clear Facility.
(11) The terms ‘‘TPA’’ and ‘‘Tri-Party Agree-
ment’’ mean the Hanford Federal Facility Agree-
ment and Consent Order as amended among Wash-
ington State, the Department, and the Environ-
mental Protection Agency.
SEC. 4. APPLICABILITY.
(a) HANFORD RESERVATION.—The Department’s
Hanford Reservation in southeastern Washington shall be
subject to this Act.
(b) OTHER DEFENSE NUCLEAR FACILITIES.—A
Governor of a State hosting a Defense Nuclear Facility
the fiscal year 1995 environmental management budget
of which was $500,000,000 or more may submit a request
to the President that the facility be covered by the terms
of this Act. Within 60 days after receipt of such a request,
the President shall, unless the President determines that
such application is not in the national interest, appoint
a Site Manager for the facility pursuant to section 5.
Thereafter, such Defense Nuclear Facility shall be subject
to this Act.
SEC. 5. SITE MANAGER.
(a) POLICY.—The President shall appoint, within 60
days after enactment of this Act, a Site Manager for the
Hanford Reservation. For other Defense Nuclear Facili-
ties, the President shall appoint a site manager, within
60 days of receipt of a request from the Governor of a
host State submitted pursuant to section 4(b). The Site
Manager shall be appointed from a list of 3 candidates
for such position to be provided by the Secretary.
(b) SCOPE.—In addition to other authorities provided
for in this Act, the Site Manager for a Defense Nuclear
Facility shall have full authority to oversee and direct all
operations at the facility including the authority to—
(1) enter into and modify contractual agree-
ments to enhance environmental cleanup and man-
agement at the Defense Nuclear Facility;
(2) manage congressionally appropriated envi-
ronmental management funds allocated to the De-
fense Nuclear Facility, with the ability to transfer
funds among accounts in order to facilitate the most
efficient and timely cleanup of the Facility;
(3) negotiate amendments to the Tri-Party
Agreement or other environmental agreements for
the Department;
(4) manage Department personnel at the Facil-
ity; and
(5) carry out recommendations of the Depart-
ment of Energy Office of Environmental Health and
Safety where the Site Manager determines that
those recommendations are consistent with the goals
set forth in this Act, except that if the Site Manager
elects not to carry out such recommendations, the
Site Manager shall provide to the Governor of the
host State and the Secretary a statement of the rea-
sons therefor.
Decisions by the Site Manager to disregard recommenda-
tions made by the Department of Energy’s Office of Envi-
ronmental Health and Safety shall take effect unless the
President determines within 21 days of implementation of
the issuance of the decision that the particular decision
is not in the national interest and where the State concurs
with the President’s opinion. In such cases, the President
and the host State shall certify within such 21-day period
that the recommendation does not add prohibitively to
costs at the site and that it meets important environ-
mental or human health or safety concerns.
(c) ADDITIONAL DUTIES.—The Site Manager for any
Defense Nuclear Facility subject to this Act shall prepare
the following for each remedy selected under the Com-
prehensive Environmental Response, Compensation, and
Liability Act of 1980 at such facility if the cost of the
remedy exceeds $25,000,000:
(1) An analysis of the incremental costs and in-
cremental risk reduction or other benefits associated
with the selected remedy.
(2) An assessment of the costs and risk reduc-
tion or other benefits, including protection of human
health or the environment, or the fostering of eco-
nomic development, associated with implementation
of the selected remedy.
(3) A certification of each of the following:
(A) That the assessment under paragraph
(2) is based on an objective and unbiased sci-
entific and economic evaluation.
(B) That the remedy will substantially ad-
vance the purpose of protecting human health
or the environment against the risk addressed
by the remedy.
(C) That there is no alternative remedy
that is allowed by the statute that would
achieve an equivalent reduction in risk in a
more cost-effective manner.
The assessments and certifications required under
this paragraph may be set forth in several docu-
ments or a single document, as determined by the
Site Manager. Completion of such assessments and
certifications shall not delay selection or implemen-
tation of a remedy and shall be completed prior to
or concurrent with the selection of a remedy.
(d) CLEANUP STANDARDS.—The Site Manager shall
select remedial actions for a Defense Nuclear Facility in
accordance with the provisions of section 121(d) of the
Comprehensive Environmental Response, Compensation,
and Liability Act of 1980 (42 U.S.C. 9621(d)), except
that the remedial actions need not attain any relevant and
appropriate standard, requirement, criteria, or limitation.
(e) METRIC SYSTEM.—The Site Manager for any De-
fense Nuclear Facility subject to this Act may exempt the
facility from the requirements of the Metric System Con-
version Act of 1975 (15 U.S.C. 205a and following).
SEC. 6. DEPARTMENT ORDERS.
(a) EXISTING ORDERS.—The internal orders of the
Department of Energy, whether or not they have been
adopted as regulations, shall not apply at a Defense Nu-
clear Facility subject to this Act 60 days after the con-
firmation of the Site Manager except for those orders that
the Site Manager deems essential for the protection of
human health or the environment, or to the conduct of
critical administrative functions.
(b) NEW ORDERS.—The Site Manager of a Defense
Nuclear Facility subject to this Act may adopt a new order
only after finding that the order is essential to the protec-
tion of human health or the environment, or to the con-
duct of critical administrative functions, and, to the extent
possible, will not unduly interfere with efforts to bring the
Defense Nuclear Facility into compliance with environ-
mental laws, including the terms of any environmental
agreement.
SEC. 7. STATE EXERCISE OF REGULATORY AUTHORITY.
(a) STATE
EXERCISE
OF
AUTHORITIES
UNDER
CERCLA.—(1) Notwithstanding any other provision of
law, a host State may exercise the authorities vested in
the Administrator of the Environmental Protection Agen-
cy under the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9601
et seq.) at any Defense Nuclear Facility subject to this
Act if the host State complies with the provisions of this
section.
(2) A host State that elects to exercise the authorities
vested in the Administrator of the Environmental Protec-
tion Agency under the Environmental Protection Agency
under the Comprehensive Environmental Response, Com-
pensation, and Liability Act of 1980 shall notify the Ad-
ministrator in writing. Within 60 days of the Administra-
tor’s receipt of the State’s notification, the Administrator
shall provide for the orderly transfer of her authorities at
the Defense Nuclear Facility to the host State. The host
State and the Department shall amend any existing inter-
agency agreement to reflect the transfer of authorities at
the Defense Nuclear Facility.
(3) A host State that elects to exercise the authorities
vested in the Administrator of the Environmental Protec-
tion Agency under the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 shall re-
tain its authority under section 310 of that Act (42 U.S.C.
9659) to enforce compliance with any requirement of an
interagency agreement with the Department, including the
authority to compel implementation of a remedy selected
by the State and shall have the authority granted under
section 109 of that Act (42 U.S.C. 9609(a)(1)).
(4)(A) At a Defense Nuclear Facility where the Ad-
ministrator’s authorities under section 120(e)(4) of the
Comprehensive Environmental Response, Compensation,
and Liability Act of 1980 (42 U.S.C. 9620(e)(4)) have
been transferred to the host State pursuant to this section,
and the host State does not concur in a remedy proposed
by the Site Manager, the parties shall enter into dispute
resolution as provided in their interagency agreement.
(B) The final level of such disputes shall be to the
Site Manager and the Governor of the host State, and if
the Site Manager and the Governor do not reach agree-
ment, the host State shall select the final remedy: Pro-
vided, however, That before reaching the final level of dis-
pute, the remedy selection dispute shall be reviewed by a
mediator selected by the host State and the Site Manager.
The mediator shall be experienced in contaminated site re-
mediation, and radionuclide exposure issues. The mediator
may consult with representatives of the National Academy
of Sciences, and other qualified experts as the mediator
deems necessary. If the mediation does not result in the
parties reaching agreement, the mediator shall recommend
the remedy he deems appropriate. The mediation process
shall be completed as quickly as possible, and in no event
shall take more than 90 days to complete. If the Governor
disagrees with the mediator’s recommendation, the host
State shall issue the final determination on the dispute,
with a written rationale for such determination.
(C) In selecting a remedy, the Site Manager, the me-
diator, and the host State shall consider the remedy selec-
tion criteria in section 121 of the Comprehensive Environ-
mental Response, Compensation, and Liability Act of
1980 (42 U.S.C. 9621), and in the National Contingency
Plan, the provisions of this Act, and the assessment and
the certification prepared by the Site Manager under sec-
tion 5(c) of this Act.
(5) Remedial actions selected for Defense Nuclear
Facilities or portions thereof shall be consistent with the
Future Land Use plan developed by the Land Use Coun-
cil. Remedial actions, including cleanup standards, shall
be selected using reasonable maximum exposure scenarios
that are consistent with the future land uses set forth in
the Future Land Use plan. Appropriate institutional con-
trols shall be implemented whenever the concentration of
hazardous substances remaining after completion of the
remedial action would pose a threat or potential threat to
human health under a residential use exposure scenario.
(b) REDUNDANCIES.—The host State shall integrate,
to the maximum extent possible, the requirements of ap-
plicable laws over which it has jurisdiction, to eliminate
redundancies that do not contribute to the environmental
management program.
(c) ADJOINING STATES.—(1) The Site Manager shall
provide to any adjoining State those opportunities for re-
view and comment regarding any response action at a De-
fense Nuclear Facility that are provided pursuant to sec-
tion 121(f)(1) (D), (E), (G), and (H) by the Environ-
mental Protection Agency under the Comprehensive Envi-
ronmental Response, Compensation, and Liability Act of
1980 (42 U.S.C. 9621(f)(1) (D), (E), (G), and (H)).
(2) A host State shall enter into negotiations with,
and is authorized to enter into a Memorandum of Under-
standing with, an adjoining State addressing issues of mu-
tual concern regarding a Defense Nuclear Facility. Noth-
ing in this paragraph shall delay implementation of this
section.
(3) If a host State brings an action to compel imple-
mentation of a remedial action pursuant to this section,
an adjoining State may intervene as a matter of right in
such action.
(d) PENALTIES.—All funds collected by the host
State from the Federal Government as penalties or fines
imposed for the violation of any environmental law at a
Defense Nuclear Facility shall be used by the host State
only for projects to protect the environment at or near
the facility from threats resulting from the facility or to
remedy contamination associated with the facility.
SEC. 8. COMPLIANCE WITH NATIONAL ENVIRONMENTAL
POLICY ACT.
The Site Manager shall integrate, to the maximum
extent possible, the requirements of the National Environ-
mental Policy Act (42 U.S.C. 4321) with other applicable
State and Federal regulatory requirements. Where an
analysis of environmental impacts and public comment
process has been completed under other applicable law, in-
cluding the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9601
and following) or State environmental laws, for any deci-
sion, project, or action conducted at a Defense Nuclear
Facility, and the Site Manager determines that the analy-
sis and process are substantially equivalent to that re-
quired by the National Environmental Policy Act, the Site
Manager need not conduct another environmental analysis
or public comment process under the National Environ-
mental Policy Act.
SEC. 9. LAND USE COUNCIL.
(a) COUNCIL ESTABLISHED.—There is hereby estab-
lished a Land Use Council for each Defense Nuclear Facil-
ity for which a Site Manager has been appointed under
this Act. Each Land Use Council shall develop a future
land use plan for all lands within the Defense Nuclear Fa-
cility boundaries that are managed under the Comprehen-
sive Environmental Response, Compensation, and Liabil-
ity Act of 1980 and are listed on the National Priorities
List. The Council shall not specify future land use for
lands outside National Priority List site boundaries. At
the Hanford Reservation, the Council shall not specify fu-
ture land use for the Fitzner-Eberhardt Arid Lands Ecol-
ogy Reserve or the Wahluke Slope. The plan shall be given
full consideration in developing and selecting remedial ac-
tions for the Defense Nuclear Facility.
(b) MEMBERSHIP.—Each Land Use Council shall
make decisions by majority vote. The members of the
Council for a Defense Nuclear Facility shall include the
Site Manager for the Defense Nuclear Facility who shall
be a voting member and the following additional members
appointed by such Site Manager:
(1) One voting member nominated by the Gov-
ernor of the host State.
(2) One voting member nominated by the elect-
ed officials of counties and cities contiguous to or
within 15 miles of a Defense Nuclear Facility.
(3) One nonvoting member consisting of the
chair of the site advisory board, established by the
Department at the Defense Nuclear Facility or such
members designee.
(4) One nonvoting member appointed by the
national laboratory in closest proximity to the De-
fense Nuclear Facility.
(c) PLAN ADOPTION.—The Land Use Council shall
adopt, within 24 months after confirmation of the Site
Manager, a Future Land Use plan for the Defense Nu-
clear Facility. To support remedial action decisions, the
Council shall use a phased approach in developing a future
land use plan. Prior to completion of the full plan, but
no later than 9 months after the Site Manager’s confirma-
tion, the Council shall adopt land use plans for portions
of the Facility to support scheduled remedial action deci-
sions as requested by the Site Manager.
(d) CONTENT OF THE PLAN.—The Future Land Use
Plan for a Defense Nuclear Facility shall include—
(1) lands that should be retained by the De-
partment for its use or for the maintenance of insti-
tutional controls needed to protect the public or en-
vironment from hazardous substances or radioactive
materials;
(2) lands designated for industrial use;
(3) lands designated for commercial use;
(4) lands designated for residential use;
(5) lands designated for agricultural use;
(6) lands designated for recreational use; and
(7) lands designated for open space.
(e) PLAN CRITERIA.—In developing the Future Land
Use Plan, the Land Use Council shall consider informa-
tion it deems appropriate, including—
(1) the degree to which lands within the De-
fense Nuclear Facility could be reasonably remedi-
ated given technological considerations;
(2) the cost of remediation;
(3) the risks to human health and the environ-
ment;
(4) the land use history of the facility and sur-
rounding lands, current land uses of the facility and
surrounding lands, recent development patterns in
the proximity of the facility, and population projec-
tion for the area;
(5) land use plans prepared for adjacent lands
and for the facility, including for the Hanford res-
ervation, the report of the Future Site Working
Group;
(6) Federal or State land use designations, in-
cluding Federal facilities and national parks, State
groundwater or surface water recharge areas, rec-
reational areas, wildlife refuges, ecological areas, and
historic or cultural areas;
(7) the proximity of contamination to resi-
dences, sensitive populations or ecosystems, natural
resources, or areas of unique historic or cultural sig-
nificance;
(8) the potential for economic development; and
(9) recreation, open space, cultural, and other
noneconomic values.
(f) CONSULTATION.—In preparing the land use plan,
the Council shall consult with—
(1) adjoining States,
(2) affected Indian Tribes,
(3) affected local governments,
(4) appropriate State and Federal agencies, and
(5) the public.
All Council meetings shall be open to the public and shall
be scheduled and conducted to promote public participa-
tion. Adjoining States, affected Indian Tribes, affected
local governments, appropriate State and Federal agen-
cies, affected Indian Tribes, and the public shall be given
an opportunity to comment on the land use plans prior
to their adoption. The Council shall advise commentors of
the disposition of their comments.
SEC. 10. TECHNOLOGY DEMONSTRATIONS.
(a) IN GENERAL.—The Site Manager shall promote
the demonstration, certification, verification, and imple-
mentation of new environmental technologies at Defense
Nuclear Facilities.
(b) CRITERIA.—The Site Manager shall establish a
program at the Defense Nuclear Facility for testing envi-
ronmental, waste characterization and remediation tech-
nology at the site. In establishing such a program, the Site
Manager is authorized to—
(1) establish a simplified, standardized and
timely process for the testing and verification of new
technologies;
(2) solicit and accept applications to test envi-
ronmental technology suitable for waste management
and environmental restoration activities at Defense
Nuclear Facilities, including prevention, control,
characterization, treatment, and remediation of con-
tamination; and
(3) enter into cooperative agreements with
other public and private entities to test environ-
mental technologies at the Defense Nuclear Facility.
(c) SAFE HARBORS.—At the request of the Site Man-
ager, the Secretary shall seek to provide regulatory or con-
tractual ‘‘safe harbors’’ to limit liability of companies
using technology approved for use at a Defense Nuclear
Facility for use at other Department of Energy facilities.
(d) NUCLEAR MATERIAL.—When source, special nu-
clear, or by-product materials are involved, agreements
with private entities under section 9, subsection (b),
shall—
(1) provide indemnification pursuant to section
170d. of the Atomic Energy Act of 1954 (42 U.S.C.
2210(d));
(2) indemnify, protect, and hold harmless the
contractor from and against all liability, including li-
ability for legal costs, for any preexisting conditions
at any part of the Defense Nuclear Facility man-
aged under the agreement;
(3) indemnify, protect, and hold harmless the
contractor from and against all liability to third par-
ties (including liability for legal costs and for claims
for personal injury, illness, property damage, and
consequential damages) arising out of the contrac-
tor’s performance under the contract, unless such li-
ability was caused by conduct of the contractor
which was grossly negligent or which constituted in-
tentional misconduct; and
(4) provide for indemnification of subcontrac-
tors as described in subparagraphs (1), (2), and (3).
SEC. 11. CONTRACT REFORM AND FEDERAL GOVERNMENT
OVERSIGHT.
(a) CONTRACTING STRATEGIES.—The Site Manager,
in entering into and managing all contracts at Defense
Nuclear Facilities (including contracts for design, con-
struction, operation and maintenance of treatment, stor-
age and disposal facilities), may ensure effective, efficient
and consistent implementation of the Federal Acquisition
Regulation (hereinafter in this section referred to as
‘‘FAR’’) and the Federal Acquisition Streamlining Act
(hereinafter in this section referred to as ‘‘FASA’’) re-
quirements and shall—
(1) encourage market-based management and
practices;
(2) maximize competition in new procurements;
(3) 
maintain 
an 
effective 
capability 
to
recompete existing contracts;
(4) maximize efficient and effective use of
multiyear contracting practices that enhance com-
mercialization and privatization;
(5) maximize use of incentives and performance
guarantees;
(6) assure coordination and integration of all
contractor-developed designs, plans, and schedules;
(7) maximize application of best commercial
standards and specifications in all contracts; and
(8) consult to maximum extent possible, the
host State regarding contracting strategies and over-
sight, including project plans, facility designs, and
schedules and cost estimates.
(b) MULTIYEAR CONTRACTING.—The Site Manager
is authorized to enter into and implement multiyear con-
tracts, in accordance with FAR and FASA requirements
and the provisions of this Act for the design, construction,
operation and maintenance of treatment, storage and dis-
posal facilities by private entities. The Site Manager shall
do so when the Site Manager determines that such a con-
tract will maximize public resources and result in efficient
and timely environmental improvements. In entering into
such a contract, the Site Manager shall not jeopardize the
funding of environmental agreement obligations. The Site
Manager may use Department of Defense FAR multiyear
funding and termination liability procedures in lieu of ci-
vilian agency FAR procedures if the Site Manager dem-
onstrates this to be beneficial to the United States.
(c) 
ASSISTANCE
IN
IMPROVING
CONTRACTING
STRATEGIES AND GOVERNMENT OVERSIGHT.—The Site
Manager shall obtain the expertise necessary to implement
performance oriented incentive based contracting and pro-
curement practices. To accomplish this, the Site Manager
may obtain the involvement of qualified representatives
from other Federal agencies in—
(1) developing improved contracting strategies,
and participating in selection of contract sources;
and
(2) the oversight and administration of con-
tracts.
The Secretaries of involved agencies shall ensure selection
of qualified and knowledgeable representatives to assist
and advise the Site Manager. The Site Manager may also,
to the extent allowed by the FAR separately consult with
the private sector.
SEC. 12. ENVIRONMENTAL AGREEMENTS NOT AFFECTED.
Nothing in this Act shall impair the force or effect
of any environmental agreement, except to authorize re-
negotiation to incorporate the changes required to comply
with provisions of this Act.
SEC. 13. REPORT TO CONGRESS.
Two years after the effective date of this Act, and
every two years thereafter, the Site Manager for each De-
fense Nuclear Facility subject to this Act shall submit to
Congress a report evaluating progress or cleanup made
under the provisions of this Act. The report shall identify
efficiencies achieved and moneys saved through implemen-
tation of this Act and shall identify additional measures
that would increase the pace and lower the cost of environ-
mental management activities at the facility. The Site
Manager shall also report specific actions undertaken to
implement business and contracting strategies that maxi-
mize the use of fixed price and incentive based contracting
in lieu of cost reimbursement contract arrangements. The
Site Manager shall also specify in his report the utility
of commercial standards, specifications and practices, as
well as improvements in the effectiveness and efficiency
of Federal contract oversight and administration activities
within his purview.
SEC. 14. NATIONAL HISTORIC PRESERVATION ACT.
Federal structures at a Defense Nuclear Facility
smaller than 100,000 square feet shall be exempt from
the National Historic Preservation Act (16 U.S.C. 470
and following) unless the Site Manager deems these struc-
tures appropriate for National Historic Preservation Act
protection, and deems that such action will not delay
cleanup activities or increase cleanup costs at the facility.
National Historic Preservation Act review for structures
larger than 100,000 square feet shall be limited to no
more than 30 days.
SEC. 15. ENVIRONMENTAL HEALTH AND SAFETY.
The Department of Energy Office of Environmental
Health and Safety shall enforce safety and health activi-
ties at Defense Nuclear Facilities.
SEC. 16. PRIVATIZATION OF WASTE CLEANUP AND MOD-
ERNIZATION ACTIVITIES OF DEFENSE NU-
CLEAR FACILITIES.
(a) CONTRACT AUTHORITY.—Notwithstanding any
other law, the Site Manager may enter into 1 or more
long-term contracts, with a private entity located within
75 miles of a Defense Nuclear Facility, for the procure-
ment of products or services that are determined by the
Site Manager to be necessary to support environmental
management activities at such facilities, including the de-
sign, construction, and operation of treatment, storage,
and disposal facilities.
(b) CONTRACT PROVISIONS.—A contract under sub-
section (a)—
(1) shall be for a term of not more than 30
years;
(2) may include options for 2 extensions of not
more than 5 years each;
(3) when source, special nuclear, by-product,
hazardous materials are involved, shall include an
agreement to—
(A) provide indemnification pursuant to
section 170d. of the Atomic Energy Act of 1954
(42 U.S.C. 2210(d));
(B) indemnify, protect, and hold harmless
the contractor from and against all liability (in-
cluding liability to third parties for legal costs
and for claims for personal injury, illness, prop-
erty damage, and consequential damages) relat-
ing to pre-existing conditions at any part of the
Defense Nuclear Facility arising out of the con-
tractor’s performance under the contract unless
such liability was caused by conduct of the con-
tractor which was negligent or grossly negligent
or which constituted intentional misconduct;
and
(C) provide for indemnification of sub-
contractors as described in subparagraphs (A)
and (B);
(4) shall permit the contractor to obtain a pat-
ent for and use for commercial purposes a tech-
nology developed by the contractor in the perform-
ance of the contract;
(5) shall provide for fixed or performance based
compensation; and
(6) shall include such other terms and condi-
tions as the Site Manager considers appropriate to
protect the interests of the United States.
(c) PREFERENCE FOR LOCAL RESIDENTS.—In enter-
ing into contracts under subsection (a), the Site Manager
shall give preference, consistent with Federal, State, and
local law, to entities that plan to hire, to the maximum
extent practicable, residents in the vicinity of the Defense
Nuclear Facility who are employed or who have previously
been employed by the Department of Energy or a private
contractor at the facility.
(d) PAYMENT
OF
BALANCE
OF
UNAMORTIZED
COSTS.—
(1) DEFINITION.—For purposes of this sub-
section, the term ‘‘special facility’’ means land, a de-
preciable building, structure, or utility, or depre-
ciable machinery, equipment, or material that is not
supplied to a contractor by the Department.
(2) CONTRACT TERM.—A contract under sub-
section (a) may provide that if the contract is termi-
nated for the convenience of the Government, the
Secretary shall pay the unamortized balance of the
cost of any special facility acquired or constructed
by the contractor for performance of the contract.
(3) SOURCE OF FUNDS.—The Secretary may
make a payment under a contract term described in
paragraph (2) and pay any other costs assumed by
the Secretary as a result of the termination out of
any appropriations that are available to the Depart-
ment of Energy for operating expenses, not includ-
ing funds allocated to environmental management
activities at the site, for the fiscal year in which the
termination occurs or for any subsequent fiscal year.
(e) LIMITATION.—Funds appropriated pursuant to
this or any other Act enacted after the date of enactment
of this Act may be obligated for a contract under this sec-
tion only—
(1) to the extent or in such amounts as are pro-
vided in advance in an appropriation Act, and
(2) if such contract contains each of the follow-
ing provisions:
(A) A statement that the obligation of the
United States to make payments under the con-
tract in any fiscal year is subject to appropria-
tions being provided specifically for that con-
tract.
(B) A commitment to obligate the nec-
essary amount for each fiscal year covered by
the contract when and to the extent that funds
are appropriated for such contract for such fis-
cal year.
(C) A statement that such a commitment
given under the authority of this section does
not constitute an obligation of the United
States.
(f) LEASE OF FEDERALLY OWNED LAND.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, the Site Manager may lease feder-
ally owned land at a Defense Nuclear Facility to a
contractor in order to provide for or to facilitate the
construction of a facility in connection with a con-
tract under subsection (a).
(2) TERM.—The term of a lease under this
paragraph may be either the expected useful life of
the facility to be constructed, or the term of the con-
tract.
(3) TERMS AND CONDITIONS.—A lease under
paragraph (1) shall—
(A) require the contractor to pay rent in
amounts that the Site Manager considers to be
appropriate; and
(B) include such other terms and condi-
tions as the Site Manager considers to be ap-
propriate.
(g) COMMERCIAL STANDARDS.—The Site Manager
shall, whenever practicable, apply commercial standards to
contractors used in the performance of a contract under
subsection (a).
SEC. 17. PREFERENCE AND ECONOMIC DIVERSIFICATION
FOR COMMUNITIES AND LOCAL RESIDENTS.
(a) PREFERENCE.—In entering into a contract or
subcontract with a private entity for products to be ac-
quired or services to be performed at a Defense Nuclear
Facility, the Site Manager and contractors under the Site
Manager’s supervision shall, to the maximum extent prac-
ticable, give preference to an entity that is otherwise quali-
fied and within the competitive range (as determined
under section 15.609 of title 48, Code of Federal Regula-
tions, or a successor regulation, as in effect on the date
of the determination) that plans will—
(1) provide products and services originating
from communities within 75 miles of the facility;
(2) avert, to the maximum extent practicable,
the dismissal of employees employed by the Depart-
ment or a private contractor at the facility, and pro-
tect, to the maximum extent possible, the continuity
of service and benefits of such employees;
(3) hire residents living in the vicinity of the fa-
cility, especially residents who have previously been
employed by the Department or its contractors at
the facility, to perform the contract; and
(4) invest in value-added activities in the vicin-
ity of the facility to mitigate adverse economic devel-
opment impacts resulting from closure or restructur-
ing of the facility.
(b) APPLICABILITY.—Preference shall be given under
subsection (b) only with respect to a contract for an envi-
ronmental management activity that is entered into after
the date of enactment of this Act.
SEC. 18. JURISDICTION.
The United States District Court for the district in
which a Defense Nuclear Facility is located shall have ex-
clusive jurisdiction over any claims arising under this Act
with respect to such facility.
SEC. 19. STABLE FUNDING.
It is the sense of the Congress that stable levels of
funding are essential to carry out this Act. The Site Man-
ager and the President are encouraged to seek funding
levels not lower than that allocated during fiscal year
1996.
SEC. 20. EXPIRATION.
The provisions of this Act shall expire 10 years after
its enactment, but Congress may review and revoke any
provisions of this Act after 5 years if Congress determines