I
107TH CONGRESS
1ST SESSION
H. R. 3290
To authorize the Secretary of Energy to guarantee loans to facilitate nuclear
nonproliferation programs and activities of the Government of the Rus-
sian Federation, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 14, 2001
Mrs. CAPPS introduced the following bill; which was referred to the Committee
on International Relations
A BILL
To authorize the Secretary of Energy to guarantee loans
to facilitate nuclear nonproliferation programs and activi-
ties of the Government of the Russian Federation, 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 ‘‘Russian Fissile Mate-
rials Disposition Loan Guarantee Act of 2001’’.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) The proliferation of nuclear weapons rep-
resents a risk to the national security of the United
States.
(2) Countries seeking new nuclear weapons ca-
pabilities require both technical expertise and nu-
clear weapons materials.
(3) The nuclear weapons complex of the former
Soviet Union contains large amounts of such tech-
nical expertise and materials and could present risks
for nuclear proliferation.
(4) Several current programs address the po-
tential for loss of such technical expertise and mate-
rials.
(5) Progress on the Highly Enriched Uranium
Agreement and on the Plutonium Disposition Agree-
ment will enhance United States security against nu-
clear proliferation, but United States security would
be further enhanced were additional progress
achieved in securing and disposing of the nuclear
weapons materials of the former Soviet Union.
(6) In addition to the programs referred to in
paragraphs (4) and (5), a program providing for the
placement of nuclear weapons materials of the Rus-
sian Federation under permanent safeguards in ex-
change for the guarantee of loans for nonprolifera-
tion programs and activities of the Russian Federa-
tion could enhance the economy of the Russian Fed-
eration and achieve the interest of nations worldwide
in providing for the security of nuclear weapons ma-
terials that are not currently under international
safeguards.
SEC. 3. LOAN GUARANTEES.
(a) AUTHORITY TO GUARANTEE LOAN.—Subject to
the provisions of this section, the Secretary of Energy
may, with the approval of the President, guarantee loans
made to the Government of the Russian Federation for
purposes described in subsection (c)(1).
(b) LIMITATIONS ON GUARANTEES.—(1) The aggre-
gate amount of loan principal covered by guarantees under
this 
section 
at 
any 
one 
time 
may 
not 
exceed
$1,000,000,000.
(2) The guarantee of a loan under this section applies
to principal and to interest specified in the loan, except
that the guarantee on interest shall not apply to amounts
allocable to interest at a rate in excess of 3 percent per
year.
(c) LOANS ELIGIBLE FOR GUARANTEE.—(1) A loan
eligible for guarantee under this section is any loan made
by a private lender to the Government of the Russian Fed-
eration the proceeds of which are to be utilized by the Gov-
ernment of the Russian Federation for one or more of the
following purposes:
(A) Retirement of the sovereign debt of the
Russian Federation.
(B) Support of nuclear nonproliferation pro-
grams and activities of the Government of the Rus-
sian Federation.
(C) Development of the energy infrastructure of
the Russian Federation, including peaceful uses of
nuclear energy in a manner that complies with the
Nuclear Nonproliferation Treaty.
(2) A loan is not eligible for guarantee under this
section if the proceeds of the loan are to be used for any
purpose or activity under the Plutonium Disposition
Agreement, including to cover the costs of the manufac-
ture and use of mixed oxide (MOX) fuel in Russia under
the Plutonium Disposition Agreement.
(d) LOAN TERMS.—A loan guaranteed under this
section shall have the following terms:
(1) The loan principal shall be in increments of
$20,000,000.
(2) The term of the loan with respect to any
principal increment of the loan shall be not less than
15 years.
(3) Payments of principal and interest on the
loan shall be based on an amortization schedule pro-
viding that—
(A) interest on a principal increment of the
loan will commence on the date of the disburse-
ment of the principal increment of the loan;
(B) no payment of principal or interest on
a principal increment of the loan will be re-
quired for at least 5 years after the date of the
disbursement of the principal increment of the
loan;
(C) once payments of principal and inter-
est commence pursuant to subparagraph (B),
such payments will be made on a semi-annual
basis; and
(D) all interest and principal on each prin-
cipal increment of the loan will be due and pay-
able not later than the completion of the term
of the loan with respect to such principal incre-
ment of the loan.
(4) The proceeds of the loan shall be disbursed
to the Russian Federation or a department or min-
istry of the Russian Federation.
SEC. 4. SUPPORT OF INTERNATIONAL ATOMIC ENERGY
AGENCY MATERIALS SAFEGUARDS.
Of the amounts authorized to be appropriated or oth-
erwise made available to the Secretary of Energy each fis-
cal year for Materials Protection Control and Accounting,
not more than $15,000,000 shall be available to the Sec-
retary for purposes of covering the expenses of the Inter-
national Atomic Energy Agency (IAEA) in implementing
and maintaining safeguards under section 3(e) on mate-
rials providing security for loans guaranteed under section
3.
SEC. 5. AUTHORIZATION OF APPROPRIATIONS.
(a) COST OF LOAN GUARANTEES.—For the cost of
the loans guaranteed under this Act as defined in section
502 of the Congressional Budget Act of 1974 (2 U.S.C.
661a), there is authorized to be appropriated for fiscal
years 2002 through 2005, such amounts as may be nec-
essary.
(b) COST OF ADMINISTRATION.—There is hereby au-
thorized to be appropriated to the Secretary of Energy for
fiscal year 2002, $10,000,000 for purposes of activities
under this Act, other than to cover costs under subsection
(a) and to cover expenses under section 4.
(c) AVAILABILITY.—Amounts appropriated pursuant
to the authorizations of appropriations in subsections (a)
and (b) shall remain available until expended.
SEC. 6. DEFINITIONS.
In this Act:
(1) HIGHLY
ENRICHED
URANIUM
AGREE-
MENT.—The term ‘‘Highly Enriched Uranium
Agreement’’ means the Agreement Between the
United States of America and the Government of
the Russian Federation Concerning the Disposition
of Highly Enriched Uranium Extracted from Nu-
clear Weapons, dated February 18, 1993.
(2) NUCLEAR
NONPROLIFERATION
TREATY.—
The term ‘‘Nuclear Nonproliferation Treaty’’ means
the Treaty on the Nonproliferation of Nuclear
Weapons, as opened for signature July 1, 1968.
(3) PLUTONIUM
DISPOSITION
AGREEMENT.—
The term ‘‘Plutonium Disposition Agreement’’
means the Agreement Between the Government of
the United States of America and the Government
of the Russian Federation Concerning the Manage-
ment and Disposition of Plutonium Designated As
No Longer Required for Defense Purposes and Re-
lated Cooperation, signed by the United States on
September 1, 2000.
SEC. 7. TERMINATION OF AUTHORITY.
The authority of the Secretary of Energy to guar-
antee loans under this Act shall terminate on December
31, 2004. The termination of authority to guarantee loans
under this section shall not affect the validity of any guar-
antee made under this Act before that date.
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