A bill to provide for the disposition of weapons-usable plutonium at the Savannah River Site, South Carolina.

SECTION 1. FINDINGS.

    Congress makes the following findings:
            (1) In September 2000, the United States and the Russian 
        Federation signed a Plutonium Management and Disposition 
        Agreement by which each agreed to dispose of 34 metric tons of 
        weapons-grade plutonium.
            (2) The agreement with Russia is a significant step toward 
        safeguarding nuclear materials and preventing their diversion 
        to rogue states and terrorists.
            (3) The Department of Energy plans to dispose of 34 metric 
        tons of weapons-grade plutonium of the United States before the 
        end of 2019 by converting the plutonium to a mixed-oxide fuel 
        to be used in commercial nuclear power reactors.
            (4) The Department has formulated a plan for implementing 
        the agreement with Russia through construction of a mixed-oxide 
        fuel fabrication facility and a pit disassembly and conversion 
        facility at the Savannah River Site.
            (5) The United States and the State of South Carolina have 
        a compelling interest in the safe, proper, and efficient 
        operation of the plutonium disposition facilities at the 
        Savannah River Site. The MOX facility will also be economically 
        beneficial to the State of South Carolina, and that economic 
        benefit will not be fully realized unless the MOX facility is 
        built.
            (6) The State of South Carolina desires to ensure that all 
        plutonium transferred to the State of South Carolina is stored 
        safely; that the full benefits of the MOX facility are realized 
        as soon as possible; and, specifically, that all defense 
        plutonium or defense plutonium materials transferred to the 
        Savannah River Site either be processed or be removed 
        expeditiously.

SEC. 2. DEFINITIONS.

    (a) MOX Production Objective Defined.--The term ``MOX production 
objective'' means production at the MOX facility of mixed-oxide fuel 
from defense plutonium and defense plutonium materials at an average 
rate equivalent to not less than one metric ton of mixed-oxide fuel per 
year. The average rate shall be determined by measuring production at 
the MOX facility from the date the facility is declared operational to 
the Nuclear Regulatory Commission through the date of assessment.
    (b) MOX Facility Defined.--The term ``MOX facility'' means the 
mixed-oxide fuel fabrication facility at the Savannah River Site, 
Aiken, South Carolina.
    (c) Defense Plutonium and Defense Plutonium Materials Defined.--The 
term ``defense plutonium or defense plutonium materials'' means 
weapons-usable plutonium.

SEC. 3. DISPOSITION OF WEAPONS-USABLE PLUTONIUM AT SAVANNAH RIVER SITE, 
              SOUTH CAROLINA.

    (a) Plan for Construction and Operation of MOX Facility.--
            (1) Not later than February 1, 2003, the Secretary of 
        Energy shall submit to Congress a plan for the construction and 
        operation of the MOX facility.
            (2) The plan under paragraph (1) shall include--
                    (A) a schedule for construction and operations so 
                as to achieve, as of January 1, 2009, and thereafter, 
                the MOX production objective, and to produce 1 metric 
                ton of mixed oxide fuel by December 31, 2009, and
                    (B) a schedule of operations of the MOX facility 
                designed so that 34 metric tons of defense plutonium 
                and defense plutonium materials at the Savannah River 
                Site will be processed into mixed oxide fuel by January 
                1, 2019.
            (3)(A) Not later than February 15 each year, beginning in 
        2004 and continuing for as long as the MOX facility is in use, 
        the Secretary shall submit to Congress a report on the 
        implementation of the plan required by paragraph (1).
            (B) Each report under subparagraph (A) for years before 
        2010 shall include--
                    (i) an assessment of compliance with the schedules 
                included with the plan under paragraph (2); and
                    (ii) a certification by the Secretary whether or 
                not the MOX production objective can be met by January 
                2009.
            (C) Each report under subparagraph (A) for years after 2009 
        shall--
                    (i) address whether the MOX production objective 
                has been met; and
                    (ii) assess progress toward meeting the obligations 
                of the United States under the Plutonium Management and 
                Disposition Agreement.
            (D) For years after 2017, each such report shall also 
        include an assessment of compliance with the MOX production 
        objective and, if not in compliance, the plan of the Secretary 
        for achieving one of the following:
                    (i) Compliance with such objective; and
                    (ii) Removal of all remaining defense plutonium and 
                defense plutonium materials from the State of South 
                Carolina.
    (b) Corrective Actions.--
            (1) If a report under subsection (a)(3) indicates that 
        construction or operation of the MOX facility is behind the 
        applicable schedule under subsection (a)(2) by 12 months or 
        more, the Secretary shall submit to Congress, not later than 
        August 15 of the year in which such report is submitted, a plan 
        for corrective actions to be implemented by the Secretary to 
        ensure that the MOX facility project is capable of meeting the 
        MOX production objective by January 1, 2009.
            (2) If a plan is submitted under paragraph (1) in any year 
        after 2008, the plan shall include corrective actions to be 
        implemented by the Secretary to ensure that the MOX production 
        objective is met.
            (3) Any plan for corrective actions under paragraph (1) or 
        (2) shall include establish milestones under such plan for 
        achieving compliance with the MOX production objective.
            (4) If before January 1, 2009, the Secretary determines 
        that there is a substantial and material risk that the MOX 
        production objective will not be achieved by 2009 because of a 
        failure to achieve milestones set forth in the most recent 
        corrective action plan under this subsection, the Secretary 
        shall suspend further transfers of defense plutonium and 
        defense plutonium materials to be processed by the MOX facility 
        until such risk is addressed and the Secretary certifies that 
        the MOX production objective can be met by 2009.
            (5) If after January 1, 2009, the Secretary determines that 
        the MOX production objective has not been achieved because of a 
        failure to achieve milestones set forth in the most recent 
        corrective action plan under this subsection, the Secretary 
        shall suspend further transfers of defense plutonium and 
        defense plutonium materials to be processed by the MOX facility 
        until the Secretary certifies that the MOX production objective 
        can be met.
            (6)(A) Upon making a determination under paragraph (4) or 
        (5), the Secretary shall submit to Congress a report on the 
        options for removing from the State of South Carolina an amount 
        of defense plutonium or defense plutonium materials equal to 
        the amount of defense plutonium or defense plutonium materials 
        transferred to the State of South Carolina after April 15, 
        2002.
            (B) Each report under subparagraph (A) shall include an 
        analysis of each option set forth in the report, including the 
        cost and schedule for implementation of such option, and any 
        requirements under the National Environmental Policy Act of 
        1969 (42 U.S.C. 4321 et seq.) relating to consideration or 
        selection of such option.
            (C) Upon submittal of a report under paragraph (A), the 
        Secretary shall commence any analysis that may be required 
        under the National Environmental Policy Act of 1969 in order to 
        select among the options set forth in the report.
    (c) Contingent Requirement for Removal of Plutonium and Materials 
From Savannah River Site.--If the MOX production objective is not 
achieved as of January 1, 2009, the Secretary shall, consistent with 
the National Environmental Policy Act of 1969 and other applicable 
laws, remove from the State of South Carolina, for storage or disposal 
elsewhere--
            (1) not later than January 1, 2011, not less than 1 metric 
        ton of defense plutonium or defense plutonium materials; and
            (2) not later than January 1, 2017, an amount of defense 
        plutonium or defense plutonium materials equal to the amount of 
        defense plutonium or defense plutonium materials transferred to 
        the Savannah River Site between April 15, 2002 and January 1, 
        2017, but not processed by the MOX facility.
    (d) Economic and Impact Assistance.--
            (1) If the MOX production objective is not achieved as of 
        January 1, 2011, the Secretary shall pay to the State of South 
        Carolina each year beginning on or after that date through 2016 
        for economic and impact assistance an amount equal to 
        $1,000,000 per day until the later of--
                    (A) the passage of 100 days in such year;
                    (B) the MOX production objective is achieved in 
                such year; or
                    (C) the Secretary has removed from the State of 
                South Carolina in such year at least 1 metric ton of 
                defense plutonium or defense plutonium materials.
            (2)(A) If the MOX production objective is not achieved as 
        of January 1, 2017, the Secretary shall pay to the State of 
        South Carolina each year beginning on or after that date 
        through 2024 for economic and impact assistance an amount equal 
        to $1,000,000 per day until the later of--
                    (i) the passage of 100 days in such year;
                    (ii) the MOX production objective is achieved in 
                such year; or
                    (iii) the Secretary has removed from the State of 
                South Carolina an amount of defense plutonium or 
                defense plutonium materials equal to the amount of 
                defense plutonium or defense plutonium materials 
                transferred to the Savannah River Site between April 
                15, 2002, and January 1, 2017, but not processed by the 
                MOX facility.
            (B) Nothing in this paragraph may be construed to 
        terminate, supersede, or otherwise affect any other 
        requirements of this section.
            (3) The Secretary shall make payments, if any, under this 
        subsection, from amounts authorized to be appropriated to the 
        Department of Energy.
            (4) If the State of South Carolina obtains an injunction 
        that prohibits the Department from taking any action necessary 
        for the Department to meet any deadline specified by this 
        subsection, that deadline shall be extended for a period of 
        time equal to the period of time during which the injunction is 
        in effect.
    (e) Failure To Complete Planned Disposition Program.--If on July 1 
each year beginning in 2020 and continuing for as long as the MOX 
facility is in use, less than 34 metric tons of defense plutonium or 
defense plutonium materials have been processed by the MOX facility, 
the Secretary shall submit to Congress a plan for--
            (1) completing the processing of 34 metric tons of defense 
        plutonium and defense plutonium material by the MOX facility; 
        or
            (2) removing from the State of South Carolina an amount of 
        defense plutonium or defense plutonium materials equal to the 
        amount of defense plutonium or defense plutonium materials 
        transferred to the Savannah River Site after April 15, 2002, 
        but not processed by the MOX facility.
    (f) Removal of Mixed Oxide Fuel Upon Completion of Operations of 
MOX Facility.--If one year after the date on which operation of the MOX 
facility permanently ceases any mixed oxide fuel remains at the 
Savannah River Site, the Secretary shall submit to Congress--
            (1) a report on when such fuel will be transferred for use 
        in commercial nuclear reactors; or
            (2) a plan for removing such fuel from the State of South 
        Carolina.

SEC. 4. STUDY OF FACILITIES FOR STORAGE OF PLUTONIUM AND PLUTONIUM 
              MATERIALS.

    (a) The Defense Nuclear Facilities Safety Board shall conduct a 
study of the adequacy of K-Area Materials Storage facility (KAMS), and 
related support facilities such as Building 235-F, at the Savannah 
River Site for the storage of defense plutonium and defense plutonium 
materials in connection with the disposition program provided in this 
section and in connection with the amended Record of Decision of the 
Department for fissile materials disposition.
    (b) Not later than one year after the date of the enactment of this 
Act, the Defense Nuclear Facilities Safety Board shall submit to 
Congress and the Secretary a report on the study conducted under 
paragraph (1).
    (c) The report under paragraph (2) shall--
            (1) address--
                    (A) the suitability of KAMS, and related support 
                facilities, for monitoring and observing any defense 
                plutonium or defense plutonium materials stored in 
                KAMS;
                    (B) the adequacy of the provisions made by the 
                Department for remote monitoring of such defense 
                plutonium and defense plutonium materials by way of 
                sensors and for handling of retrieval of such defense 
                plutonium and defense plutonium materials; and
                    (C) the adequacy of KAMS should such defense 
                plutonium and defense plutonium materials continue to 
                be stored at KAMS after 2019; and
            (2) include such recommendations as the Defense Nuclear 
        Facilities Safety Board considers appropriate to enhance the 
        safety, reliability, and functionality of KAMS.
    (d) Not later than six months after the date on which the report 
under paragraph (2) is submitted to Congress, and every year 
thereafter, the Secretary and the Board shall each submit to Congress a 
report on the actions taken by the Secretary in response to the 
recommendations, if any, included in the report.

Summary: Directs the Secretary of Energy to submit to Congress a plan for the construction and operation at the Savannah River Site, South Carolina, of a mixed-oxide fuel facility for converting weapons-grade plutonium to a mixed-oxide fuel for use in commercial nuclear power reactors. Provides a construction schedule and production deadline dates, with the goal of achieving facility construction by January 1, 2009, and of processing 34 metric tons of plutonium into mixed-oxide fuel by January 1, 2019. Requires: (1) the Secretary to submit corrective action plans if the schedule and deadlines are not met; (2) the removal or disposal of unprocessed plutonium from the Site if the schedule and deadlines are not met; and (3) payment to South Carolina of economic and impact assistance associated with not meeting the schedule and deadlines. Directs the Secretary to submit to Congress: (1) a plan to address the failure to complete the planned removal or disposal; and (2) a report on the removal of the facility upon completion of operations.Requires the Defense Nuclear Facilities Safety Board to study and report to Congress and the Secretary on the adequacy of the K-Area Materials Storage Facility and related facilities at the Savannah River Site for the storage of defense plutonium and related materials in connection with the plutonium disposition program.