[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2110 Introduced in House (IH)]

  1st Session
                                H. R. 2110

 To provide leadership, improved efficiencies, and regulatory clarity 
for Department of Energy waste management and environmental restoration 
 efforts at the Hanford Reservation and certain other Defense Nuclear 
                              Facilities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 25, 1995

Mr. Hastings of Washington (for himself, Mr. Dicks, Mr. Nethercutt, Ms. 
   Dunn of Washington, Mr. White, Mr. Bunn of Oregon, Mr. Tate, Mr. 
   Metcalf, Mrs. Smith of Washington, and Mr. Cooley) introduced the 
following bill; which was referred to the Committee on Commerce, and in 
 addition to the Committees on National Security, and Resources, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
 To provide leadership, improved efficiencies, and regulatory clarity 
for Department of Energy waste management and environmental restoration 
 efforts at the Hanford Reservation and certain other Defense Nuclear 
                              Facilities.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Enhanced Environmental Cleanup and 
Management Demonstration Act of 1995''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress hereby finds that:
            (1) Defense Nuclear Facilities were used to produce nuclear 
        weapons materials to defend the United States in World War II 
        and thereafter. These facilities played a critical role in 
        securing the defense and overall welfare of the country.
            (2) Defense Nuclear Facilities are now among the most 
        contaminated sites in the country. Many are listed on the 
        National Priorities List compiled pursuant to the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 
        1980. Contamination and inadequate waste management practices 
        at Defense Nuclear Facilities pose threats to workers, 
        surrounding communities, and the environment.
            (3) Although the Department has begun to address the 
        contamination and manage its waste, it has achieved too little 
        progress for the significant amount of money spent.
            (4) Problems with environmental restoration and waste 
        management at Defense Nuclear Facilities are attributable to a 
        number of factors. Among these is inefficient management by the 
        Department at headquarters and at the Defense Nuclear 
        Facilities, including outmoded contracting procedures, lack of 
        competition, cumbersome bureaucratic processes, and the lack of 
        a clear chain of command. All of these things have contributed 
        to confusion and inefficiency 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 restoration.
            (6) Regulatory requirements applicable to Defense Nuclear 
        Facilities can be complex and, at times, redundant. Frequently, 
        the Department is accountable 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 require significant 
regulatory reform measures, and to require 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 Facility.
            (2) The term ``Defense Nuclear Facility'' means a former or 
        current Defense nuclear production facility now owned and 
        managed by the Department of Energy.
            (3) The term ``Department'' means the Department 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 
        compliance 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 boundaries that is subject 
        to this Act.
            (7) The term ``interagency agreement'' means an agreement 
        entered into pursuant to the provisions of section 120(e) of 
        the Comprehensive Environmental, 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 congressionally 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 Presidentially 
        appointed Department of Energy official delegated with full 
        authority from the Secretary to oversee and direct all 
        operations at a Defense Nuclear Facility.
            (11) The terms ``TPA'' and ``Tri-Party Agreement'' mean the 
        Hanford Federal Facility Agreement and Consent Order as amended 
        among Washington State, the Department, and the Environmental 
        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 Facilities, 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 agreements to enhance 
        environmental cleanup and management at the Defense Nuclear 
        Facility;
            (2) manage congressionally appropriated environmental 
        management funds allocated to the Defense 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 Facility; and
            (5) carry out recommendations of the Department 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 reasons therefor.
Decisions by the Site Manager to disregard recommendations made by the 
Department of Energy's Office of Environmental 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 environmental 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 Comprehensive 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 incremental 
        risk reduction or other benefits associated with the selected 
        remedy.
            (2) An assessment of the costs and risk reduction or other 
        benefits, including protection of human health or the 
        environment, or the fostering of economic 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 scientific and 
                economic evaluation.
                    (B) That the remedy will substantially advance 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 documents or a single 
        document, as determined by the Site Manager. Completion of such 
        assessments and certifications shall not delay selection or 
        implementation 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 Defense Nuclear 
Facility subject to this Act may exempt the facility from the 
requirements of the Metric System Conversion 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 Nuclear Facility subject to this Act 60 days after 
the confirmation 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 protection of human health or the 
environment, or to the conduct of critical administrative functions, 
and, to the extent possible, will not unduly interfere with efforts to 
bring the Defense Nuclear Facility into compliance with environmental 
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 Agency 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 Protection Agency under the 
Environmental Protection Agency under the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 shall notify the 
Administrator in writing. Within 60 days of the Administrator'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 interagency 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 Protection Agency under the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 shall retain 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 Administrator'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 agreement, the host State shall select the final 
remedy: Provided, however, That before reaching the final level of 
dispute, 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 remediation, 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 mediator, and the 
host State shall consider the remedy selection criteria in section 121 
of the Comprehensive Environmental 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 section 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 Council. 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 controls 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 applicable 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 review and comment regarding 
any response action at a Defense Nuclear Facility that are provided 
pursuant to section 121(f)(1) (D), (E), (G), and (H) by the 
Environmental Protection Agency under the Comprehensive Environmental 
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 Understanding with, an 
adjoining State addressing issues of mutual concern regarding a Defense 
Nuclear Facility. Nothing in this paragraph shall delay implementation 
of this section.
    (3) If a host State brings an action to compel implementation 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 Environmental 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, including the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9601 and following) or State environmental laws, for 
any decision, project, or action conducted at a Defense Nuclear 
Facility, and the Site Manager determines that the analysis and process 
are substantially equivalent to that required by the National 
Environmental Policy Act, the Site Manager need not conduct another 
environmental analysis or public comment process under the National 
Environmental Policy Act.
SEC. 9. LAND USE COUNCIL.

    (a) Council Established.--There is hereby established a Land Use 
Council for each Defense Nuclear Facility 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 Facility 
boundaries that are managed under the Comprehensive Environmental 
Response, Compensation, and Liability 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 future land use for 
the Fitzner-Eberhardt Arid Lands Ecology Reserve or the Wahluke Slope. 
The plan shall be given full consideration in developing and selecting 
remedial actions 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 Governor of the host 
        State.
            (2) One voting member nominated by the elected 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 Defense 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 Nuclear 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 confirmation, the Council shall adopt land use 
plans for portions of the Facility to support scheduled remedial action 
decisions 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 Department for its 
        use or for the maintenance of institutional controls needed to 
        protect the public or environment 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 information it deems appropriate, 
including--
            (1) the degree to which lands within the Defense Nuclear 
        Facility could be reasonably remediated given technological 
        considerations;
            (2) the cost of remediation;
            (3) the risks to human health and the environment;
            (4) the land use history of the facility and surrounding 
        lands, current land uses of the facility and surrounding lands, 
        recent development patterns in the proximity of the facility, 
        and population projection for the area;
            (5) land use plans prepared for adjacent lands and for the 
        facility, including for the Hanford reservation, the report of 
        the Future Site Working Group;
            (6) Federal or State land use designations, including 
        Federal facilities and national parks, State groundwater or 
        surface water recharge areas, recreational areas, wildlife 
        refuges, ecological areas, and historic or cultural areas;
            (7) the proximity of contamination to residences, sensitive 
        populations or ecosystems, natural resources, or areas of 
        unique historic or cultural significance;
            (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 participation. Adjoining States, 
affected Indian Tribes, affected local governments, appropriate State 
and Federal agencies, 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 implementation of new environmental 
technologies at Defense Nuclear Facilities.
    (b) Criteria.--The Site Manager shall establish a program at the 
Defense Nuclear Facility for testing environmental, waste 
characterization and remediation technology 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 environmental 
        technology suitable for waste management and environmental 
        restoration activities at Defense Nuclear Facilities, including 
        prevention, control, characterization, treatment, and 
        remediation of contamination; and
            (3) enter into cooperative agreements with other public and 
        private entities to test environmental technologies at the 
        Defense Nuclear Facility.
    (c) Safe Harbors.--At the request of the Site Manager, the 
Secretary shall seek to provide regulatory or contractual ``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 nuclear, 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 liability for legal 
        costs, for any preexisting conditions at any part of the 
        Defense Nuclear Facility managed under the agreement;
            (3) indemnify, protect, and hold harmless the contractor 
        from and against all liability to third parties (including 
        liability for legal costs and for claims for personal injury, 
        illness, property damage, and consequential damages) arising 
        out of the contractor's performance under the contract, unless 
        such liability was caused by conduct of the contractor which 
        was grossly negligent or which constituted intentional 
        misconduct; and
            (4) provide for indemnification of subcontractors 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, construction, operation and maintenance of 
treatment, storage 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'') requirements 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 commercialization 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 oversight, including 
        project plans, facility designs, and schedules and cost 
        estimates.
    (b) Multiyear Contracting.--The Site Manager is authorized to enter 
into and implement multiyear contracts, in accordance with FAR and FASA 
requirements and the provisions of this Act for the design, 
construction, operation and maintenance of treatment, storage and 
disposal facilities by private entities. The Site Manager shall do so 
when the Site Manager determines that such a contract 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 civilian agency FAR 
procedures if the Site Manager demonstrates 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 
procurement 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 contracts.
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 Defense 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 implementation 
of this Act and shall identify additional measures that would increase 
the pace and lower the cost of environmental management activities at 
the facility. The Site Manager shall also report specific actions 
undertaken to implement business and contracting strategies that 
maximize 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 structures 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 activities at Defense Nuclear 
Facilities.

SEC. 16. PRIVATIZATION OF WASTE CLEANUP AND MODERNIZATION ACTIVITIES OF 
              DEFENSE NUCLEAR 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 
procurement of products or services that are determined by the Site 
Manager to be necessary to support environmental management activities 
at such facilities, including the design, construction, and operation 
of treatment, storage, and disposal facilities.
    (b)  Contract Provisions.--A contract under subsection (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 (including 
                liability to third parties for legal costs and for 
                claims for personal injury, illness, property damage, 
                and consequential damages) relating to pre-existing 
                conditions at any part of the Defense Nuclear Facility 
                arising out of the contractor's performance under the 
                contract unless such liability was caused by conduct of 
                the contractor which was negligent or grossly negligent 
                or which constituted intentional misconduct; and
                    (C) provide for indemnification of subcontractors 
                as described in subparagraphs (A) and (B);
            (4) shall permit the contractor to obtain a patent for and 
        use for commercial purposes a technology developed by the 
        contractor in the performance of the contract;
            (5) shall provide for fixed or performance based 
        compensation; and
            (6) shall include such other terms and conditions as the 
        Site Manager considers appropriate to protect the interests of 
        the United States.
    (c) Preference for Local Residents.--In entering 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 subsection, the term 
        ``special facility'' means land, a depreciable building, 
        structure, or utility, or depreciable machinery, equipment, or 
        material that is not supplied to a contractor by the 
        Department.
            (2) Contract term.--A contract under subsection (a) may 
        provide that if the contract is terminated 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 
        Department of Energy for operating expenses, not including 
        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 section only--
            (1) to the extent or in such amounts as are provided in 
        advance in an appropriation Act, and
            (2) if such contract contains each of the following 
        provisions:
                    (A) A statement that the obligation of the United 
                States to make payments under the contract in any 
                fiscal year is subject to appropriations being provided 
                specifically for that contract.
                    (B) A commitment to obligate the necessary amount 
                for each fiscal year covered by the contract when and 
                to the extent that funds are appropriated for such 
                contract for such fiscal 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 federally 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 contract 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 contract.
            (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 conditions as the 
                Site Manager considers to be appropriate.
    (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 acquired 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 
practicable, give preference to an entity that is otherwise qualified 
and within the competitive range (as determined under section 15.609 of 
title 48, Code of Federal Regulations, 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 Department or a private contractor 
        at the facility, and protect, to the maximum extent possible, 
        the continuity of service and benefits of such employees;
            (3) hire residents living in the vicinity of the facility, 
        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 vicinity of the 
        facility to mitigate adverse economic development impacts 
        resulting from closure or restructuring of the facility.
    (b) Applicability.--Preference shall be given under subsection (b) 
only with respect to a contract for an environmental 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 exclusive 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 Manager 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 that enactment of this Act has 
not accelerated cleanup or reduced costs at the Defense Nuclear 
Facility.
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