[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1216 Introduced in House (IH)]

  1st Session
                                H. R. 1216

To amend the Atomic Energy Act of 1954 to provide for the privatization 
              of the United States Enrichment Corporation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 13, 1995

  Mr. Bliley introduced the following bill; which was referred to the 
                         Committee on Commerce

_______________________________________________________________________

                                 A BILL


 
To amend the Atomic Energy Act of 1954 to provide for the privatization 
              of the United States Enrichment Corporation.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND REFERENCE.

    (a) Short Title.--This Act may be cited as the ``USEC Privatization 
Act''.
    (b) Reference.--Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Atomic 
Energy Act of 1954 (42 U.S.C. 2011 et seq.)

SEC. 2. PRODUCTION FACILITY.

    Paragraph v. of section 11 of title I (42 U.S.C. 2014 v.) is 
amended by striking ``or the construction and operation of a uranium 
enrichment production facility using Atomic Vapor Laser Isotope 
Separation technology''.

SEC. 3. DEFINITIONS.

    Section 1201 of title II (42 U.S.C. 2297) is amended--
            (1) in paragraph (4), by inserting before the period the 
        following: ``and any successor corporation thereto, including 
        as contemplated in chapter 25'';
            (2) by redesignating paragraphs (10) through (13) as 
        paragraphs (14) through (17), respectively, and by inserting 
        after paragraph (9) the following new paragraphs:
            ``(10) The term `low-level radioactive waste' has the 
        meaning given such term in section 102(9) of the Low-Level 
        Radioactive Waste Policy Amendments Act of 1985 (42 U.S.C. 
        2021b(9)).
            ``(11) The term `mixed waste' has the meaning given such 
        term in section 1004(41) of the Solid Waste Disposal Act (42 
        U.S.C. 6903(41)).
            ``(12) The term `privatization' means the transfer of 
        ownership of the Corporation to private investors pursuant to 
        chapter 25.
            ``(13) The term `privatization date' means the date on 
        which 100 percent of ownership of the Corporation has been 
        transferred to private investors.'';
            (3) by inserting after paragraph (17) (as redesignated) the 
        following new paragraph:
            ``(18) The term `transition date' means July 1, 1993.''; 
        and
            (4) by redesignating paragraph (14) as paragraph (19).

SEC. 4. EMPLOYEES OF THE CORPORATION.

    Paragraph (4) of section 1305(e) of title II (42 U.S.C. 2297b-
4(e)(4)) is amended--
            (1) by striking ``and detailees'' in the heading;
            (2) by striking the first sentence;
            (3) in the second sentence, by inserting ``from other 
        Federal employment'' after ``transfer to the Corporation''; and
            (4) by striking the last sentence.

SEC. 5. MARKETING AND CONTRACTING AUTHORITY.

    (a) Exclusive Marketing Agent.--Section 1401 (42 U.S.C. 2297c) is 
amended--
            (1) effective on the privatization date (as defined in 
        section 1201(11) of the Atomic Energy Act of 1954), by 
        repealing subsection (a), and
            (2) in subsection (b)--
                    (A) by striking ``(b) Transfer of Contracts.--'',
                    (B) by redesignating paragraphs (1), (2), and (3) 
                as subsections (a), (b), and (c), respectively, and
                    (C) by redesignating subparagraphs (A), (B) and (C) 
                of subsections (b) and (c) (as so redesignated) as 
                paragraphs (1), (2), and (3), respectively.
    (b) Transfer of Contracts.--Section 1401(b) of title II (42 U.S.C. 
2297c(b)) is amended--
            (1) in paragraph (2)(B), by adding at the end the 
        following: ``The privatization of the Corporation shall not 
        affect the terms of, or the rights or obligations of the 
        parties to, any such power purchase contract.''; and
            (2) by adding at the end the following:
            ``(3) Effect of transfer.--
                    ``(A) As a result of the transfer pursuant to 
                paragraph (1), all rights, privileges, and benefits 
                under such contracts, agreements, and leases, including 
                the right to amend, modify, extend, revise, or 
                terminate any of such contracts, agreements, or leases 
                were irrevocably assigned to the Corporation for its 
                exclusive benefit.
                    ``(B) Notwithstanding the transfer pursuant to 
                paragraph (1), the United States shall remain obligated 
                to the parties to the contracts, agreements, and leases 
                transferred thereby for the performance of its 
                obligations thereunder during the term thereof. The 
                Corporation shall reimburse the United States for any 
                amount paid by the United States in respect of such 
                obligations arising after the privatization date to the 
                extent such amount is a legal and valid obligation of 
                the Corporation then due.
                    ``(C) After the privatization date, upon any 
                material amendment, modification, extension, revision, 
                replacement, or termination of any contract, agreement, 
or lease transferred under paragraph (1), the United States shall be 
released from further obligation under such contract, agreement, or 
lease, provided further that such action shall not release the United 
States from obligations arising under such contract, agreement, or 
lease prior to such time.''.
    (b) Pricing.--Section 1402 of title II (42 U.S.C. 2297c-1) is 
amended to read as follows:

``SEC. 1402. PRICING.

    ``The Corporation shall establish prices for its products, 
materials, and services provided to customers on a basis that will 
allow it to attain the normal business objectives of a profitmaking 
corporation.''.
    (c) Leasing of Gaseous Diffusion Facilities of Department.--Section 
1403 of title II (42 U.S.C. 2297c-2) is amended by adding at the end 
the following:
    ``(h) Low-Level Radioactive Waste and Mixed Waste.--
            ``(1) Responsibility of the department; costs.--(A) With 
        respect to low-level radioactive waste and mixed waste 
        generated by the Corporation as a result of the operations of 
        the facilities and related property leased by the Corporation 
        pursuant to subsection (a) or as a result of treatment of such 
        wastes at a location other than the facilities and related 
        property leased by the Corporation pursuant to subsection (a), 
        at the request of the Corporation, the Department shall--
                    ``(i) accept for treatment or disposal of all such 
                wastes for which treatment or disposal technologies and 
                capacities exist, whether within the Department or 
                elsewhere; and
                    ``(ii) accept for storage (or ultimately treatment 
                or disposal) all such wastes for which treatment and 
                disposal technologies or capacities do not exist, 
                pending development of such technologies or 
                availability of such capacities for such wastes.
            ``(B) All low-level wastes and mixed wastes that the 
        Department accepts for treatment, storage, or disposal pursuant 
        to subparagraph (A) shall for the purpose of any permits, 
        licenses, authorizations, agreements, or orders involving the 
        Department and other Federal agencies or State or local 
        governments be deemed to be generated by the Department and the 
        Department shall handle such wastes in accordance with any such 
        permits, licenses, authorizations, agreements, or orders. The 
        Department shall obtain any additional permits, licenses, or 
        authorizations necessary to handle such wastes, shall amend any 
        such agreements or orders as necessary to handle such wastes, 
        and shall handle such wastes in accordance therewith.
            ``(C) The Corporation shall reimburse the Department for 
        the treatment, storage, or disposal of low-level radioactive 
        waste or mixed waste pursuant to subparagraph (A) in an amount 
        equal to the Department's costs but in no event greater than an 
        amount equal to that which would be charged by commercial, 
        State, regional, or interstate compact entities for treatment, 
        storage, or disposal of such waste.
            ``(2) Acceptance by other persons.--The Corporation may 
        also enter into agreements for the treatment, storage, or 
        disposal of low-level radioactive waste and mixed waste 
        generated by the Corporation as a result of the operation of 
        the facilities and related property leased by the Corporation 
        pursuant to subsection (a) with any person other than the 
        Department that is authorized by applicable laws and 
        regulations to treat, store, or dispose of such wastes.''.
    (d) Liabilities.--
            (1) Subsection (a) of section 1407 (as redesignated) (42 
        U.S.C. 2297c-5(a)) is amended--
                    (A) by inserting ``and Privatization'' after 
                ``Transition'' in the heading; and
                    (B) by adding at the end the following: ``As of the 
                privatization date, all liabilities attributable to the 
                operation of the Corporation from the transition date 
                to the privatization date shall be direct liabilities 
                of the United States.''.
            (2) Subsection (b) of such section 1407 (42 U.S.C. 2297c-
        5(b)) is amended--
                    (A) by inserting ``and Privatization'' after 
                ``Transition'' in the heading; and
                    (B) by adding at the end the following: ``As of the 
                privatization date, any judgment entered against the 
                Corporation imposing liability arising out of the 
                operation of the Corporation from the transition date 
                to the privatization date shall be considered a 
                judgment against the United States.''.
            (3) Subsection (d) of such section 1407 (42 U.S.C. 2297c-
        5(d)) is amended--
                    (A) by inserting ``and Privatization'' after 
                ``Transition'' in the heading; and
                    (B) by striking ``the transition date'' and 
                inserting ``the privatization date (or, in the event 
                the privatization date does not occur, the transition 
                date)''.
    (e) Transfer of Uranium.--Title II (42 U.S.C. 2297 et seq.) is 
amended--
            (1) by inserting after section 1408 (as redesignated) the 
        following:

``SEC. 1409. TRANSFER OF URANIUM.

    ``The Secretary may transfer to the Corporation without charge raw 
uranium, low-enriched uranium, and highly enriched uranium.''; and
            (2) by redesignating the subsequent sections accordingly.

SEC. 6. PRIVATIZATION OF THE CORPORATION.

    (a) Establishment of Private Corporation.--Chapter 25 of title II 
(42 U.S.C. 2297d et seq.) is amended by adding at the end the following 
new section:

``SEC. 1503. ESTABLISHMENT OF PRIVATE CORPORATION.

    ``(a) Establishment.--
            ``(1) In general.--In order to facilitate privatization, 
        the Corporation may provide for the establishment of a private 
        corporation organized under the laws of any of the several 
        States. Such corporation shall have among its purposes the 
        following:
                    ``(A) To help maintain a reliable and economical 
                domestic source of uranium enrichment services.
                    ``(B) To undertake any and all activities as 
                provided in its corporate charter.
            ``(2) Authorities.--The corporation established pursuant to 
        this section shall be authorized to--
                    ``(A) enrich uranium, provide for uranium to be 
                enriched by others, or acquire enriched uranium 
                (including low-enriched uranium derived from highly 
                enriched uranium);
                    ``(B) conduct, or provide for conducting, those 
                research and development activities related to uranium 
                enrichment and related processes and activities the 
                corporation considers necessary or advisable to 
                maintain itself as a commercial enterprise operating on 
                a profitable and efficient basis;
                    ``(C) enter into transactions regarding uranium, 
                enriched uranium, or depleted uranium with--
                            ``(i) persons licensed under section 53, 
                        63, 103, or 104 in accordance with the licenses 
                        held by those persons;
                            ``(ii) persons in accordance with, and 
                        within the period of, an agreement for 
                        cooperation arranged under section 123; or
                            ``(iii) persons otherwise authorized by law 
                        to enter into such transactions;
                    ``(D) enter into contracts with persons licensed 
                under section 53, 63, 103, or 104 for as long as the 
                corporation considers necessary or desirable, to 
                provide uranium or uranium enrichment and related 
                services;
                    ``(E) enter into contracts to provide uranium or 
                uranium enrichment and related services in accordance 
                with, and within the period of, an agreement for 
                cooperation arranged under section 123 or as otherwise 
                authorized by law; and
                    ``(F) take any and all such other actions as are 
                permitted by the law of the jurisdiction of 
                incorporation of the corporation.
            ``(3) Transfer of assets.--For purposes of implementing the 
        privatization, the Corporation may transfer some or all of its 
        assets and obligations to the corporation established pursuant 
        to this section, including--
                    ``(A) all of the Corporation's assets, including 
                all contracts, agreements, and leases, including all 
                uranium enrichment contracts and power purchase 
                contracts;
                    ``(B) all funds in accounts of the Corporation held 
                by the Treasury or on deposit with any bank or other 
                financial institution;
                    ``(C) all of the Corporation's rights, duties, and 
                obligations, accruing subsequent to the privatization 
                date, under the power purchase contracts covered by 
                section 1401(b)(2)(B); and
                    ``(D) all of the Corporation's rights, duties, and 
                obligations, accruing subsequent to the privatization 
                date, under the lease agreement between the Department 
                and the Corporation executed by the Department and the 
                Corporation pursuant to section 1405.
            ``(4) Merger or consolidation.--For purposes of 
        implementing the privatization, the Corporation may merge or 
        consolidate with the corporation established pursuant to this 
        section if such action is contemplated by the plan for 
        privatization approved by the President. The Board shall have 
        exclusive authority to approve such merger or consolidation and 
        to take all further actions necessary to consummate such merger 
        or consolidation, and no action by or in respect of 
        shareholders shall be required. The merger or consolidation 
        shall be effected in accordance with, and have the effects of a 
        merger or consolidation under, the laws of the jurisdiction of 
        incorporation of the surviving corporation, and all rights and 
        benefits provided under this title to the Corporation shall 
        apply to the surviving corporation as if it were the 
        Corporation.
            ``(5) Tax treatment of privatization.--
                    ``(A) Transfer of assets or merger.--No income, 
                gain, or loss shall be recognized by any person by 
                reason of the transfer of the Corporation's assets to, 
                or the Corporation's merger with, the corporation 
                established pursuant to this section in connection with 
                the privatization.
                    ``(B) Cancellation of debt and common stock.--No 
                income, gain, or loss shall be recognized by any person 
                by reason of any cancellation of any obligation or 
                common stock of the Corporation in connection with the 
                privatization.
    ``(b) OSHA Requirements.--For purposes of the regulation of 
radiological and nonradiological hazards under the Occupational Safety 
and Health Act of 1970, the corporation established pursuant to this 
section shall be treated in the same manner as other employers licensed 
by the Nuclear Regulatory Commission. Any interagency agreement entered 
into between the Nuclear Regulatory Commission and the Occupational 
Safety and Health Agency governing the scope of their respective 
regulatory authorities shall apply to the corporation, as if the 
corporation were a Nuclear Regulatory Commission licensee.
    ``(c) Legal Status of Private Corporation.--
            ``(1) Not federal agency.--The corporation established 
        pursuant to this section shall not be an agency, 
        instrumentality, or establishment of the United States 
        Government and shall not be a Government corporation or 
        Government-controlled corporation.
            ``(2) No recourse against united states.--Obligations of 
        the corporation established pursuant to this section shall not 
        be obligations of, or guaranteed as to principal or interest 
        by, the Corporation or the United States, and the obligations 
        shall so plainly state.
            ``(3) No claims court jurisdiction.--No action under 
        section 1491 of title 28, United States Code, shall be 
        allowable against the United States based on the actions of the 
        corporation established pursuant to this section.
    ``(d) In the event that the privatization is implemented by means 
of a public offering, an election of the members of the board of 
directors of the Corporation by the shareholders shall be conducted 
before the end of the 1-year period beginning the date shares are first 
offered to the public pursuant to such public offering.''.
    (b) Ownership Limitations.--Chapter 25 of title II (as amended by 
subsection (a)) is amended by adding at the end the following new 
section:

``SEC. 1504. OWNERSHIP LIMITATIONS.

    ``(a) In the event that the privatization is implemented by means 
of a public offering, during a period of 3 years beginning on the 
privatization date, no person, directly or indirectly, may acquire or 
hold securities representing more than 10 percent of the total votes of 
all outstanding voting securities of the Corporation.
    ``(b) Subsection (a) shall not apply--
            ``(1) to any employee stock ownership plan of the 
        Corporation,
            ``(2) to underwriting syndicates holding shares for resale, 
        or
            ``(3) in the case of shares beneficially held for others, 
        to commercial banks, broker-dealers, clearing corporations, or 
        other nominees.
    ``(c)(1) In the event that the privatization is implemented by 
means of a public offering and notwithstanding any other provision of 
law which has the effect of restricting the authority of the Securities 
and Exchange Commission to prescribe regulations, the Commission shall 
prescribe regulations which limit--
            ``(A) the extent to which inside persons can benefit from 
        such privatization by reason of their being inside persons; and
            ``(B) the amount of control inside persons can acquire over 
        the Corporation by reason of the privatization.
    ``(2) For purposes of this subsection--
            ``(A) the term `Commission' means the Securities and 
        Exchange Commission; and
            ``(B) `inside person' means--
                    ``(i) any individual who is a director, officer, 
                employee, or agent of the Corporation at any time 
                during the period beginning 1 year before the date of 
                the enactment of this section and ending at such time 
                after the first shares of the Corporation are offered 
                to the public as the Commission determines to be 
                appropriate to carry out the purposes of this 
                subsection; and
                    ``(ii) any other person associated with any 
                individual described in clause (i) or any group of 
                persons which includes any such individual.
    ``(3) The regulations prescribed by the Commission pursuant to 
paragraph (1) shall include the following:
            ``(A) A limitation on the percentage of shares of the 
        Corporation that may be acquired by inside persons, including 
        any stock option plan or any management or employee stock 
        benefit plan, before and during the public offering, subject to 
        such exceptions as the Commission may determine to be 
        appropriate.
            ``(B) A requirement prohibiting any inside person from 
        acquiring any share of the Corporation before or during the 
        public offering at a price which is less than the price at 
        which shares are offered to the public.
            ``(C) A limitation on the amount of shares of the 
        Corporation, if any, which inside persons, including any stock 
        option plan or any management or employee stock benefit plan, 
        may acquire during such period of time after the privatization 
        of the Corporation is complete as the Commission may determine 
        to be appropriate, subject to such exceptions as the Commission 
        may determine to be appropriate.
            ``(D) A limitation or prohibition on the implementation by 
        the Corporation, without stockholder approval, of any stock 
        option plan or any management or employee stock benefit plan 
        during such period after the privatization of the Corporation 
        is complete as the Commission may determine to be appropriate, 
        subject to such exceptions as the Commission may determine to 
        be appropriate.
            ``(E) A limitation or prohibition on the sale by an inside 
        person, including any stock option plan or any management or 
        employee stock benefit plan, of any stock of the Corporation 
        during such period after the privatization of the Corporation 
        is complete as the Commission may determine to be appropriate, 
        subject to such exceptions as the Commission may determine to 
        be appropriate.
    ``(4)(A) The provisions of this subsection, and regulations 
prescribed under this subsection, shall be enforced under the 
Securities Act of 1933 and the Securities Exchange Act of 1934 by the 
Commission.
    ``(B) For purposes of applying the Securities Act of 1933 and the 
Securities Exchange Act of 1934 in accordance with subparagraph (A), a 
violation of this subsection, or any regulation prescribed under this 
subsection, shall be treated as a violation of such Acts.''.
    (c) Exemption From Liability.--Chapter 25 of title II (as amended 
by subsection (b)) is amended by adding at the end the following new 
section:

``SEC. 1505. EXEMPTION FROM LIABILITY.

    ``(a) In General.--No director, officer, employee, or agent of the 
Corporation shall be liable, for money damages or otherwise, to any 
party if, with respect to the subject matter of the action, suit, or 
proceeding, such person was fulfilling a duty, in connection with any 
action taken in connection with the privatization, which such person in 
good faith reasonably believed to be required by law or vested in such 
person.
    ``(b) Exception.--This section shall not apply to claims arising 
out of the Securities Act of 1933, the Securities Exchange Act of 1934, 
or the Constitution or laws of any State, territory, or possession of 
the United States relating to transactions in securities, which claims 
are in connection with a public offering implementing the 
privatization.''.
    (d) Resolution of Certain Issues.--Chapter 25 of title II (as 
amended by subsection (c)) is amended by adding at the end the 
following new section:

``SEC. 1506. RESOLUTION OF CERTAIN ISSUES.

    ``(a) Corporation Actions.--The Corporation shall not be considered 
to be in breach, default, or violation of any agreement to which it is 
a party, notwithstanding any provision of such agreement, because of 
any provision of this chapter or any action the Corporation is required 
to take under this chapter.
    ``(b) Right To Sue Withdrawn.--The United States hereby withdraws 
any stated or implied consent for the United States, or any agent or 
officer of the United States, to be sued by any person for any legal, 
equitable, or other relief with respect to any claim arising out of, or 
resulting from, acts or omissions under this chapter.''.
    (e) Application of Privatization Proceeds.--Chapter 25 of title II 
(as amended by subsection (d)) is amended by adding at the end the 
following new section:

``SEC. 1507. APPLICATION OF PRIVATIZATION PROCEEDS.

    ``The proceeds from the privatization shall be included in the 
budget baseline required by the Balanced Budget and Emergency Deficit 
Control Act of 1985 and shall be counted as an offset to direct 
spending for purposes of section 252 of such Act, notwithstanding 
section 257(e) of such Act.''.
    (f) Amendments to Atomic Energy Act as of the Privatization Date.--
Chapter 25 of title II (as amended by subsection (e)) is amended by 
adding at the end the following new section:

``SEC. 1508. AMENDMENTS TO THE ATOMIC ENERGY ACT AS OF THE 
              PRIVATIZATION DATE.

    ``(a) In General.--As of the privatization date, the following 
sections (as renumbered pursuant to this Act) of the Atomic Energy Act 
of 1954 shall no longer be operative:
            ``(1) Section 1202.
            ``(2) Sections 1301 through 1304.
            ``(3) Section 1305 (except subsection (e)(4)).
            ``(4) Sections 1306 through 1316.
            ``(5) Sections 1405 and 1406.
            ``(6) Section 1601.
            ``(7) Sections 1603 through 1607.
    ``(b) Statutory Modifications To Take Effect.--As of the 
privatization date, the following statutory modifications shall take 
effect:
            ``(1) For purposes of title I, all references in this Act 
        to the `United States Enrichment Corporation' shall be deemed 
        to be references to the corporation established pursuant to 
        section 1503.
            ``(2) Section 1018(1) of the Energy Policy Act of 1992 (42 
        U.S.C. 2296b-7(1)) is amended by striking `the United States' 
        and all that follows through the period and inserting `the 
        corporation referred to in section 1201(4) of the Atomic Energy 
        Act of 1954.'.
            ``(3) Section 9101(3) of title 31, United States Code, is 
        amended by striking subparagraph (N).''.

SEC. 7. PERIODIC CERTIFICATION OF COMPLIANCE.

    Section 1701(c)(2) of chapter 27 of title II (42 U.S.C. 2297f) is 
amended by striking ``Annual application for certificate of 
compliance.--The Corporation shall apply annually to the Nuclear 
Regulatory Commission for a certificate of compliance under paragraph 
(1).'' and inserting ``Periodic application for certificate of 
compliance.--The Corporation shall apply to the Nuclear Regulatory 
Commission for a certificate of compliance under paragraph (1) 
periodically, as determined by the Nuclear Regulatory Commission, but 
not less than every 5 years.''.

SEC. 8. LICENSING OF OTHER TECHNOLOGIES.

    Subsection (a) of section 1702 of title 27 of title II (42 U.S.C. 
2297f-1(a)) is amended by striking ``other than'' and inserting 
``including''.
                                 <all>
HR 1216 IH----2