A bill to authorize the Secretary of Energy to guarantee loans to facilitate nuclear nonproliferation programs and activities of the Government of the Russian Federation, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Russian Fissile Materials 
Disposition Loan Guarantee Act of 2001''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The proliferation of nuclear weapons represents a risk 
        to the national security of the United States.
            (2) Countries seeking new nuclear weapons capabilities 
        require both technical expertise and nuclear weapons materials.
            (3) The nuclear weapons complex of the former Soviet Union 
        contains large amounts of such technical expertise and 
        materials and could present risks for nuclear proliferation.
            (4) Several current programs address the potential for loss 
        of such technical expertise and materials.
            (5) Progress on the Highly Enriched Uranium Agreement and 
        on the Plutonium Disposition Agreement will enhance United 
        States security against nuclear 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 Russian Federation under permanent 
        safeguards in exchange for the guarantee of loans for 
        nonproliferation programs and activities of the Russian 
        Federation could enhance the economy of the Russian Federation 
        and achieve the interest of nations worldwide in providing for 
        the security of nuclear weapons materials 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 aggregate 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 Federation the proceeds of which are to 
be utilized by the Government 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 programs and 
        activities of the Government of the Russian 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 manufacture 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 providing that--
                    (A) interest on a principal increment of the loan 
                will commence on the date of the disbursement of the 
                principal increment of the loan;
                    (B) no payment of principal or interest on a 
                principal increment of the loan will be required for at 
                least 5 years after the date of the disbursement of the 
                principal increment of the loan;
                    (C) once payments of principal and interest 
                commence pursuant to subparagraph (B), such payments 
                will be made on a semi-annual basis; and
                    (D) all interest and principal on each principal 
                increment of the loan will be due and payable not later 
                than the completion of the term of the loan with 
                respect to such principal increment of the loan.
            (4) The proceeds of the loan shall be disbursed to the 
        Russian Federation or a department or ministry of the Russian 
        Federation.
            (5) The lender may, upon default of the Government of the 
        Russian Federation on the loan, exercise the option described 
        in subsection (e)(3).
    (e) Loan Security.--(1) As security for a loan guaranteed under 
this section, the Government of the Russian Federation shall, for each 
loan principal increment of $20,000,000, place 1.00 metric tons of 
weapons-usable plutonium and 1.00 metric tons of weapons-usable highly 
enriched uranium under International Atomic Energy Agency (IAEA) 
safeguards at a facility in Russia that is mutually acceptable to 
Russia and the IAEA. The placement of materials under such safeguards 
as security for a principal increment of a loan shall be completed 
before the disbursement of the principal increment of the loan.
    (2) As security for a loan guaranteed under this section, the 
Government of the Russian Federation shall certify to the Secretary 
that any materials placed under International Atomic Energy Agency 
safeguards pursuant to paragraph (1) shall remain under such safeguards 
indefinitely, including after the loan is paid off by the Government of 
the Russian Federation.
    (3)(A) In the event of a default on a loan guaranteed under this 
section by the Government of the Russian Federation, the lender may, 
with the approval of the Secretary, provide for the disposition or 
utilization of materials placed under safeguards pursuant to paragraph 
(1) as security for the loan to repay all or part of the loan.
    (B) The disposition or utilization of materials under this 
paragraph shall be in accordance with applicable International Atomic 
Energy Agency safeguards regarding such materials, and such materials 
may not, during the course of such disposition or utilization, be 
removed from such safeguards.
    (4) Materials placed under International Atomic Energy Agency 
safeguards pursuant to paragraph (1) shall not be treated as part of 
the 34.00 metric tons of weapons-grade plutonium to be used by the 
Government of the Russian Federation largely as mixed oxide (MOX) fuel 
under the Plutonium Disposition Agreement.
    (f) Treatment of Guarantees Under Plutonium Disposition 
Agreement.--The guarantee of any loan under this section shall not be 
treated as a contribution to the Government of the Russian Federation 
under the Plutonium Disposition Agreement.
    (g) Prohibition on Collection of Fees.--The Secretary may not 
impose or collect any fee in connection with the guarantee of a loan 
under this section.

SEC. 4. SUPPORT OF INTERNATIONAL ATOMIC ENERGY AGENCY MATERIALS 
              SAFEGUARDS.

    Of the amounts authorized to be appropriated or otherwise made 
available to the Secretary of Energy each fiscal year for Materials 
Protection Control and Accounting, not more than $15,000,000 shall be 
available to the Secretary for purposes of covering the expenses of the 
International Atomic Energy Agency (IAEA) in implementing and 
maintaining safeguards under section 3(e) on materials 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. 661(a)), there is authorized to be appropriated 
for fiscal years 2002 through 2005, such amounts as may be necessary.
    (b) Cost of Administration.--There is hereby authorized 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 agreement.--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 Nuclear 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 Management and 
        Disposition of Plutonium Designated As No Longer Required for 
        Defense Purposes and Related Cooperation, signed by the United 
        States on September 1, 2000.

SEC. 7. TERMINATION OF AUTHORITY.

    The authority of the Secretary of Energy to guarantee 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 guarantee made under this Act before that date.

Summary: Russian Fissile Materials Disposition Loan Guarantee Act of 2001 - Authorizes the Secretary of Energy, with the President's approval, to guarantee loans (principal and up to three percent per year on interest) made to the Government of the Russian Federation (GRF) for: (1) retirement of the sovereign debt of the Russian Federation; and (2) nuclear nonproliferation programs and activities. Sets forth certain guaranteed loan requirements.