[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 102 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 102

   To amend the Nuclear Non-Proliferation Act of 1978 and the Atomic 
Energy Act of 1954 to improve the organization and management of United 
        States nuclear export controls, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 4, 1995

   Mr. Glenn introduced the following bill; which was read twice and 
           referred to the Committee on Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
   To amend the Nuclear Non-Proliferation Act of 1978 and the Atomic 
Energy Act of 1954 to improve the organization and management of United 
        States nuclear export controls, and for other purposes.

    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 ``Nuclear Export Reorganization Act of 
1995''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
Sec. 4. Findings and Policy.
    TITLE I--AMENDMENTS TO THE NUCLEAR NON-PROLIFERATION ACT OF 1978

Sec. 101. Export controls over nuclear dual-use items.
Sec. 102. Non-nuclear energy resources.
             TITLE II--INITIATIVES TO STRENGTHEN COMPLIANCE

Sec. 201. Fair market initiative.
Sec. 202. Measures to improve the licensing process.
         TITLE III--AMENDMENTS TO THE ATOMIC ENERGY ACT OF 1954

Sec. 301. Subsequent arrangements.
Sec. 302. Cooperation with other nations.
Sec. 303. Prohibition on foreign production of special nuclear 
                            material.
Sec. 304. Prohibition on nuclear exports.
Sec. 305. Control of component parts.
                TITLE IV--REVIEW OF PLUTONIUM USE POLICY

Sec. 401. Findings and declarations.
Sec. 402. Report.
                            TITLE V--REPEAL

Sec. 501. Repeal of termination of provisions of the Nuclear 
                            Proliferation Prevention Act of 1994.

SEC. 3. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``direct-use material'' means nuclear material 
        that can be used for the manufacture of nuclear explosive 
        components without transmutation or further enrichment, such as 
        plutonium containing less than 80 percent plutonium-238, 
        uranium enriched to 20 percent uranium-235 or more, uranium-
        233, and chemical compounds, mixtures of direct-use materials 
        (including mixed oxide reactor fuel), and plutonium contained 
        in spent nuclear fuel;
            (2) the term ``goods or technology'' means nuclear 
        materials and equipment and sensitive nuclear technology (as 
        such terms are defined in section 4 of the Nuclear Non-
        Proliferation Act of 1978), all export items designated 
        pursuant to section 309(c) of the Nuclear Non-Proliferation Act 
        of 1978, and all technical assistance requiring authorization 
        under section 57b. of the Atomic Energy Act of 1954;
            (3) the term ``highly enriched uranium'' means uranium 
        enriched to 20 percent or more in the isotope U-235;
            (4) the term ``IAEA'' means the International Atomic Energy 
        Agency;
            (5) the term ``IAEA safeguards'' means the safeguards set 
        forth in an agreement between a country and the International 
        Atomic Energy Agency, as authorized by Article III(A)(5) of the 
        Statute of the International Atomic Energy Agency;
            (6) the term ``near real time material accountancy'' means 
        a method of accounting for the location, quantity, and 
        disposition of special fissionable material at facilities that 
        store or process such material, in which verification of 
        peaceful use is continuously achieved by means of frequent 
        physical inventories and the use of in-process instrumentation;
            (7) the term ``non-nuclear-weapon state'' means any country 
        which is not a nuclear-weapon state, as defined by Article 
        IX(3) of the Treaty on the Non-Proliferation of Nuclear 
        Weapons, signed at Washington, London, and Moscow on July 1, 
        1968;
            (8) the term ``nuclear dual-use items'' means all goods and 
        technologies whose export from the United States is controlled 
        pursuant to sections 309(c) and 311 of the Nuclear Non-
        Proliferation Act of 1978.
            (9) the term ``nuclear explosive device'' means any device, 
        whether assembled or disassembled, that is designed to release 
        in one microsecond or less an amount of nuclear energy from 
        special nuclear material that is greater than the amount of 
        energy that would be released from the detonation of one pound 
        of trinitrotoluene (TNT);
            (10) the term ``special fissionable material'', as used in 
        title III of this Act, has the meaning given that term by 
        Article XX(1) of the Statute of the International Atomic Energy 
        Agency, done at the Headquarters of the United Nations on 
        October 26, 1956;
            (11) the term ``special nuclear material'' has the meaning 
        given that term in section 11 aa. of the Atomic Energy Act of 
        1954 (42 U.S.C. 2014aa);
            (12) the term ``Treaty'' means the Treaty on the Non-
        Proliferation of Nuclear Weapons, signed at Washington, London, 
        and Moscow on July 1, 1968; and
            (13) the term ``unsafeguarded special nuclear material'' 
        means special nuclear material which is held in violation of 
        IAEA safeguards or is not subject to IAEA safeguards, and does 
        not include any quantity of material that could, if it were 
        exported from the United States, be exported under a general 
        license issued by the Nuclear Regulatory Commission.

SEC. 4. FINDINGS AND POLICY.

    (a) Findings.--The Congress finds that--
            (1) the proliferation of nuclear explosive devices poses a 
        serious and growing threat to the national security of the 
        United States;
            (2) any effective response to this threat should include 
        measures to curb both the demand for and the supply of goods 
        and technology to acquire such devices;
            (3) non-nuclear-weapon states with clandestine programs for 
        the manufacture of nuclear explosive devices continue to seek 
        foreign sources of goods and technologies that are important to 
the success of such programs;
            (4) export controls, especially when coordinated 
        internationally, inhibit such programs by adding to the costs 
        of acquiring alternative sources of restricted goods and 
        technologies and by delaying the implementation of such 
        programs;
            (5) the implementation of export controls generates 
        information that is useful in assessing the efforts by 
        importing nations to acquire capabilities to develop or produce 
        such devices and that provides an early warning of illicit 
        foreign procurement patterns;
            (6) a renewed effort is needed to improve controls over 
        nuclear dual-use items; and
            (7) the economy and effectiveness of the executive branch 
        of Government, and the effectiveness of congressional 
        oversight, require the reorganization and centralization of 
        certain export licensing functions of the Government in a 
        single agency to which all persons and commercial interests 
        seeking to engage in foreign commerce may apply.
    (b) Policy.--It is the policy of the United States--
            (1) to restrict the export or reexport of goods or 
        technology that would be contrary to the objectives of the 
        United States with respect to the nonproliferation of nuclear 
        explosive devices;
            (2) to strengthen sanctions against illicit suppliers of 
        nuclear goods or technology;
            (3) to ensure that significant national security interests 
        will prevail over commercial considerations in the event of any 
        conflict in the nuclear export licensing process between these 
        national objectives;
            (4) to cooperate with other nations to develop multilateral 
        measures to halt the global proliferation of nuclear explosive 
        devices;
            (5) to encourage individuals and companies to develop 
        voluntary measures to ensure that goods or technology will not 
        be exported that would promote the global proliferation of 
        nuclear explosive devices;
            (6) to ensure greater openness and accountability in the 
        nuclear export licensing process; and
            (7) to undertake reforms devoted to improving the 
        efficiency and effectiveness of the nuclear export licensing 
        process.

    TITLE I--AMENDMENTS TO THE NUCLEAR NON-PROLIFERATION ACT OF 1978

SEC. 101. EXPORT CONTROLS OVER NUCLEAR DUAL-USE ITEMS.

    (a) Amendment to the National Security Act of 1947.--Section 101 of 
the National Security Act of 1947 (50 U.S.C. 402) is amended by adding 
at the end thereof the following new subsection:
    ``(h)(1) The President shall establish within the National Security 
Council a `Subgroup on Nuclear Export Coordination'. The principal 
function of the Subgroup shall be to implement the export controls 
required by sections 309(c) and 311 of the Nuclear Non-Proliferation 
Act of 1978 (Public Law 95-242).
    ``(2) There are authorized to be appropriated to the Subgroup such 
sums as may be necessary to carry out the functions of the Subgroup 
under title III of the Nuclear Non-Proliferation Act of 1978.''.
    (b) Amendment to the Nuclear Non-Proliferation Act of 1978.--Title 
III of the Nuclear Non-Proliferation Act of 1978 is amended by adding 
at the end thereof the following new sections:

``SEC. 310. SUBGROUP ON NUCLEAR EXPORT COORDINATION.

    ``(a) Composition of the Subgroup.--(1) The Subgroup on Nuclear 
Export Coordination (hereafter in this title referred to as the 
`Subgroup'), established in section 101(h) of the National Security Act 
of 1947, shall be composed of six members who shall be Government 
officials having expertise in the control of exports and the non-
proliferation of nuclear explosive devices. Each such member shall be 
designated by the head of one of the following United States agencies 
from among officials of that agency, with no agency represented by more 
than one member:
            ``(A) The Department of State.
            ``(B) The Department of Defense.
            ``(C) The Department of Energy.
            ``(D) The Department of Commerce.
            ``(E) The Arms Control and Disarmament Agency.
            ``(F) The Nuclear Regulatory Commission.
    ``(2) The representative of the Arms Control and Disarmament Agency 
shall serve as Chairman of the Subgroup.
    ``(3) Upon request of the Chairman of the Subgroup, other 
departments and agencies of the United States, including elements of 
the intelligence community, the Department of Treasury, the United 
States Customs Service, and the Federal Bureau of Investigation, shall 
detail personnel to the Subgroup for the performance of duties on a 
temporary basis.
    ``(b) Functions.--The Subgroup shall--
            ``(1) serve as a forum for identifying and expressing the 
        views of the constituent agencies with respect to--
                    ``(A) the proliferation risks associated with the 
                export of nuclear dual-use items;
                    ``(B) possible international initiatives to 
                strengthen the global administration and enforcement of 
                controls over the export of such items; and
                    ``(C) recommendations to the President on 
                regulatory and legislative measures to improve the 
                efficiency or effectiveness of export controls over 
                such items, including the verification of peaceful end-
                uses and the design and execution of improved post-
                export verification measures;
            ``(2) review applications for the export of nuclear dual-
        use items in accordance with sections 309(c) and 311;
            ``(3) designate the items for inclusion on the Nuclear 
        Referral List established under section 311(a) and shall 
determine their description and technical specifications;
            ``(4) monitor and facilitate the interagency process with 
        respect to the nuclear export licensing activities described in 
        this Act or in the Atomic Energy Act of 1954, and in 
        regulations issued pursuant to such Acts; and
            ``(5) undertake investigations and make recommendations in 
        accordance with section 201 of the Nuclear Export 
        Reorganization Act of 1995.
    ``(c) Access to Export Licensing Information.--Notwithstanding any 
other provision of law--
            ``(1) the members of the Subgroup shall have full, timely, 
        and equal access to information contained in applications for 
        the export from the United States, or the reexport from any 
        other country, of any nuclear dual-use item;
            ``(2) the Secretary of Commerce shall, upon request by any 
        member of the Subgroup, provide that member with information 
        contained in applications for licenses to export any other item 
        from the United States, if that member requests such 
        information for purposes relating to the objectives of this 
        Act; and
            ``(3) the Secretary of Commerce shall, within six months 
        after the issuance of a license to export any nuclear dual-use 
        item from the United States, open to the public for examination 
        and inspection all nonproprietary data pertaining to such 
        license, including--
                    ``(A) the commodity description,
                    ``(B) the country destination,
                    ``(C) the end-use and end-user,
                    ``(D) the quantity,
                    ``(E) the date of approval, and
                    ``(F) the date and method of shipment,
        if no names of persons or companies and no dollar values of 
        commodities in individual licenses are included among this 
        data.
    ``(d) Export Control Bulletin.--(1) The Chairman of the Subgroup 
shall, in consultation with the Subgroup, establish and publish an 
export control bulletin on issues relating to the proliferation of 
nuclear explosive devices, including regulations, international 
agreements, and other relevant developments that the Chairman 
determines may be necessary for the purpose of informing exporters and 
the general public about the risks of proliferation and efforts to 
reduce or eliminate such risks.
    ``(2) Information appearing in the bulletin shall constitute one, 
but not an exclusive, basis for satisfaction of the criterion of 
`requisite knowledge' in section 401(a) of the Nuclear Export 
Reorganization Act of 1995 and in section 601(a) of the Federal Deposit 
Insurance Corporation Improvement Act of 1991, and the criterion of 
`knows or has reason to know' in section 311(b)(3) of this Act.

``SEC. 311. LICENSING PROCESS.

    ``(a) Controlled Items.--(1)(A) The President shall establish and 
maintain a list of items, designated by the Subgroup, whose export is 
controlled pursuant to section 309(c). Such list may be known as the 
`Nuclear Referral List'.
    ``(B) The President shall cause the Nuclear Referral List and any 
modification thereof to be published in the Federal Register.
    ``(C) Except as otherwise provided under section 202(b) of the 
Nuclear Export Reorganization Act of 1995, an individual validated 
license is required for the export from the United States of any item 
on the Nuclear Referral List.
    ``(2) For purposes of this section, any item that--
            ``(A) is not on the Nuclear Referral List,
            ``(B) requires a validated export license for national 
        security reasons, and
            ``(C) is intended for a nuclear-related end-use or end-
        user,
shall be subject to the procedures established under this title which 
are otherwise applicable to items on the Nuclear Referral List.
    ``(3)(A) An individual validated license is required for an export 
to any destination of any technical data or commodity where the 
exporter knows or has reason to know that the data or commodity will be 
used directly or indirectly in any of the following activities, whether 
or not the item is specifically designed or modified for such 
activities:
            ``(i) Designing, developing, fabricating, or testing any 
        nuclear explosive device.
            ``(ii) Designing, constructing, fabricating, or operating 
        any of the following facilities, or components for such 
        facilities:
                    ``(I) Facilities for the chemical processing of 
                irradiated special nuclear or source material.
                    ``(II) Facilities for the production of heavy 
                water.
                    ``(III) Facilities for the separation of isotopes 
                of source and special nuclear material.
                    ``(IV) Facilities for the fabrication of nuclear 
                reactor fuel containing plutonium or highly enriched 
                uranium.
                    ``(V) Unsafeguarded nuclear fuel cycle facilities.
    ``(B) An item is used indirectly in an activity described in 
subparagraph (A)--
            ``(i) if any United States agency notifies an exporter of 
        the risk of any such use; or
            ``(ii) the item would materially assist the performance of 
        any such activity.
    ``(b) Authority of the Secretary of Commerce.--Except as otherwise 
provided in this section, the Secretary of Commerce shall be 
responsible for--
            ``(1) processing all applications for validated licenses 
        for the export of all nuclear dual-use items requiring such a 
        license before the export from the United States or the 
        reexport from any other country of any such items; and
            ``(2) record keeping with respect to the approval or denial 
        of such licenses or authorizations.
    ``(c) License Approvals and Denials.--(1) Whenever the Secretary of 
Commerce receives an application for a validated license for the export 
from the United States of any nuclear dual-use item, the Secretary 
shall submit the application to the Subgroup for review as to whether--
            ``(A) approval of such export would be contrary to the 
        objective of averting the proliferation of nuclear explosive 
        devices; or
            ``(B) the proposed export would pose an unacceptable risk 
        of diversion to a nuclear explosive activity or to an 
        unsafeguarded nuclear fuel cycle.
    ``(2) The Secretary shall issue no license for the export of any 
nuclear dual-use item without the concurrence of all members of the 
Subgroup that each of the review criteria of paragraph (1) has been 
fully satisfied.
    ``(3) In performing the reviews required by paragraph (1), the 
members of the Subgroup shall include the following factors among the 
considerations used to determine what action should be taken on 
individual applications:
            ``(A) The stated end-use of the commodity or technical 
        data.
            ``(B) The significance for nuclear purposes of the 
        particular commodity or technical data.
            ``(C) The availability of the commodity or technical data 
        from non-United States sources.
            ``(D) The types of assurances or guarantees against use for 
        nuclear explosive purposes or proliferation given in the 
        particular case.
            ``(E) The non-proliferation credentials of the importing 
        country concerned, based on consideration of factors such as--
                    ``(i) a country's status as a party to the Treaty 
                on the Non-Proliferation of Nuclear Weapons or the 
                Treaty for the Prohibition of Nuclear Weapons in Latin 
                America;
                    ``(ii) whether the country has all its nuclear 
                activities under International Atomic Energy Agency 
                safeguards or equivalent full scope safeguards;
                    ``(iii) whether there is an agreement for 
                cooperation in the civil uses of atomic energy between 
                the United States and the country concerned;
                    ``(iv) the country's public statements and policies 
                concerning nuclear developments and non-proliferation;
                    ``(v) the extent of cooperation in non-
                proliferation policy generally (indications such as 
                willingness to consult on international non-
                proliferation issues); and
                    ``(vi) intelligence data on a country's nuclear 
                intentions and activities, including whether the 
                country has engaged in clandestine or illegal 
                procurement activities, whether similar licenses have 
                previously been denied by any other country, and 
                whether end users in the recipient country have 
                diverted, for purposes inconsistent with this section, 
                any nuclear goods or technology, under an export, 
                retransfer, or other activity previously authorized by 
                any country.
    ``(d) Procedures and Appeals.--(1) Applications for the export of 
nuclear dual-use items shall be made to the Department of Commerce.
    ``(2)(A) Upon receipt of any such application, the Secretary of 
Commerce shall promptly refer the application to the Subgroup.
    ``(B) Not later than 90 days after receipt of an application from 
the Secretary, the Subgroup shall complete its review of that 
application in accordance with subsection (c)(1) and shall report to 
the Secretary its determination regarding the application of that 
subsection.
    ``(3) If the Subgroup has not taken action on an application by 90 
days after receipt of that application, the applicant may file a 
petition with the Secretary of Commerce requesting compliance with the 
requirements of this section. Whenever such a petition is filed, the 
Secretary shall take immediate steps to correct the situation giving 
rise to the petition and shall immediately notify the applicant of such 
steps.
    ``(4) If, within 20 days after a petition is filed under paragraph 
(3), the processing of the application does not meet the requirements 
of this section, or the application meets such requirements but the 
Secretary has not so notified the applicant, then the applicant may 
bring an action in an appropriate United States district court for a 
restraining order, a temporary or permanent injunction, or other 
appropriate relief, to require compliance with the requirements of this 
section. The United States district courts shall have jurisdiction to 
provide such relief, as appropriate.
    ``(5)(A)(i) Any constituent agency of the Subgroup may appeal the 
denial of a license under this section to the President and, if the 
President determines that the license should be approved, the President 
shall direct the Secretary of Commerce to issue such license.
    ``(ii) The Secretary of Commerce shall report to the Congress on 
data from such licenses in accordance with section 602(c) of the 
Nuclear Non-Proliferation Act of 1978.
    ``(B) The procedures of this paragraph shall be the exclusive means 
of appeal for denials of licenses issued under this section.
    ``(C) Documentation describing and supporting the agency's position 
shall be submitted to the President as part of any appeal.
    ``(D) The President shall prescribe such regulations as may be 
necessary to carry out this paragraph.''.

SEC. 102. NON-NUCLEAR ENERGY RESOURCES.

    Title V of the Nuclear Non-Proliferation Act of 1978 is amended--
            (1) in section 501, by inserting ``(a)'' immediately after 
        ``Sec. 501.'';
            (2) by adding at the end of section 501 the following:
    ``(b)(1) The Congress declares that it is both in the national 
security and economic interests of the United States to promote the 
development in the United States of a domestic industry capable of 
competing on international markets for the sale of energy technologies 
capable of achieving the objectives of section 501(a).
    ``(2) The Congress urges the President to pursue all appropriate 
means to encourage the development of such an industry in the United 
States and otherwise to assist developing countries to acquire such 
technologies.''; and
            (3) by adding at the end of the title the following new 
        section:
    ``Sec. 504. Review of Research and Development.--Not later than 6 
months after the date of enactment of the Nuclear Export Reorganization 
Act of 1995, the President shall undertake a review of all federally 
funded research and development consistent with the objectives of 
section 501 and shall report to the Congress on the adequacy of such 
activities to achieve such objectives.''.

             TITLE II--INITIATIVES TO STRENGTHEN COMPLIANCE

SEC. 201. FAIR MARKET INITIATIVE.

    (a) Petition for Investigation.--Any United States person that 
finds that a foreign person has, on or after the date of enactment of 
this Act, engaged in an activity outside the United States that is 
inconsistent with the guidelines adopted by the United States and other 
member countries of the Nuclear Suppliers Group with respect to exports 
of nuclear dual-use items, or successor guidelines adopted by such 
countries, may petition the Subgroup on Nuclear Export Coordination to 
begin an investigation of such activities.
    (b) Determination by Subgroup.--Within 30 days of the date of 
receipt of any such petition, the Subgroup shall determine whether to 
undertake an investigation.
    (c) Recommendation Regarding Sanctions.--If the Subgroup undertakes 
an investigation and determines that the claims of the petitioner are 
sustained by available evidence, the Chairman of the Subgroup shall 
transmit a determination to that effect to the President, together with 
the specific recommendation of the Subgroup as to the imposition of the 
appropriate sanctions under title IV of this Act or under the 
amendments made by that title.
    (d) Publication in the Federal Register.--If the President does not 
disapprove such determination within a period of 30 days after receipt 
of such determination, the Chairman shall publish such determination in 
the Federal Register and the sanctions shall take effect.

SEC. 202. MEASURES TO IMPROVE THE LICENSING PROCESS.

    (a) Guidelines for Voluntary Codes of Conduct.--(1) Within 6 months 
after the date of enactment of this Act, the Subgroup shall develop 
guidelines to serve as a basis for the adoption of voluntary codes of 
conduct by companies that engage in exports of nuclear dual-use items.
    (2) The Chairman shall publish in the Federal Register such 
guidelines and the names of all companies that have agreed to adopt 
such codes of conduct.
    (b) Review of Types of Licenses.--(1) The Subgroup shall undertake 
a comprehensive review of the circumstances under which certain nuclear 
dual-use goods could be exported under licenses other than an 
individual validated license, without jeopardizing the national 
security, national interest, or nonproliferation objectives of the 
United States.
    (2) The Secretary of Commerce may, with the concurrence of the 
Subgroup, issue any such license identified in paragraph (1).
    (3) The Secretary of Commerce shall report to the Congress on data 
from such licenses in accordance with section 602(c) of the Nuclear 
Non-Proliferation Act of 1978.
    (c) Advisory Opinions.--(1) Upon the request of any person, the 
Subgroup may, after appropriate consultation, issue an advisory opinion 
in writing to that person as to whether a proposed activity by that 
person would subject that person to sanctions under existing nuclear 
export control laws.
    (2) Issuance of an advisory opinion under paragraph (1) shall not 
exempt any person from compliance with the requirements of this Act.
    (3) For purposes of this subsection, the term ``appropriate 
consultation'' means consultation by the Subgroup with the Secretary of 
State, the Secretary of Defense, the Director of the Arms Control and 
Disarmament Agency, and the heads of such other Federal agencies as the 
Subgroup may determine are necessary.
    (d) Procedure To Expedite License Approvals.--The Subgroup may 
develop and implement procedures to expedite the approvals of licenses 
for nuclear dual-use items to be exported to countries that the 
Subgroup has determined are not engaged, and are unlikely to become 
engaged, in promoting, directly or indirectly, the proliferation of 
nuclear explosive devices if no such procedures would eliminate the 
fundamental requirement of licensing of goods or technology that are 
controlled because of their association with the development, 
acquisition, or use of nuclear explosive devices.
    (e) Procedures To Expedite Licensing Decisions.--Within 12 months 
after the date of enactment of this Act, the Secretary of Commerce, in 
consultation with the members of the Committee, shall develop 
procedures to ensure that applicants for validated licenses for the 
export of nuclear dual-use items will receive notice of approval or 
denial of any such license not later than 60 days after submission of 
an application.

         TITLE III--AMENDMENTS TO THE ATOMIC ENERGY ACT OF 1954

SEC. 301. SUBSEQUENT ARRANGEMENTS.

    Section 131 of the Atomic Energy Act of 1954 (42 U.S.C. 2160) is 
amended--
            (1) by inserting ``and the Secretary of Defense'' after 
        ``concurrence of the Secretary of State'' in subsection a.(1);
            (2) by striking all after ``and shall consult with'' 
        through the colon and inserting ``the Director and the 
        Commission:'';
            (3) in subsection a.(2), by striking ``may'' in the first 
        sentence and inserting ``shall'';
            (4) in subsection b.(1), by inserting after ``such 
        arrangement'' the following ``, including documentation of the 
        technical basis for the Secretary's judgment that such 
        arrangement will ensure timely warning to the United States of 
        any diversion well in advance of the time at which the non-
        nuclear-weapon state could transform the diverted material into 
        a nuclear explosive device,''; and
            (5) in subsection d., by striking all after ``States,'' and 
        inserting in lieu thereof the following: ``and nothing in this 
        section is intended to promote the reprocessing of spent fuel 
owned by any nation which lacks a reasonable economic justification for 
such reprocessing''.

SEC. 302. COOPERATION WITH OTHER NATIONS.

    Section 123 a. of the Atomic Energy Act of 1954 (42 U.S.C. 2153) is 
amended--
    (1) by inserting ``and the Secretary of Defense'' after 
``concurrence of the Secretary of Energy''; and
    (2) by striking ``jointly by the Secretary of State and the 
Secretary of Energy'' and inserting ``jointly by the Secretary of 
State, the Secretary of Energy, and the Secretary of Defense''.

SEC. 303. PROHIBITION ON FOREIGN PRODUCTION OF SPECIAL NUCLEAR 
              MATERIAL.

    Section 57 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2077) is 
amended--
            (1) by inserting ``and the Department of Defense'' after 
        ``concurrence of the Department of State''; and
            (2) by striking ``the Department of Commerce, and the 
        Department of Defense'' and inserting ``and the Department of 
        Commerce''.

SEC. 304. PROHIBITION ON NUCLEAR EXPORTS.

    Section 129 of the Atomic Energy Act of 1954 (42 U.S.C. 2158) is 
amended by inserting after ``No nuclear materials and equipment'' the 
following: ``including any items whose export from the United States is 
controlled pursuant to the authorities of this Act, the Nuclear Non-
Proliferation Act of 1978, or the Nuclear Export Reorganization Act of 
1995,''.

SEC. 305. CONTROL OF COMPONENT PARTS.

    Section 109 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2139(b)) 
is amended by inserting ``Defense,'' after ``State,''.

                TITLE IV--REVIEW OF PLUTONIUM USE POLICY

SEC. 401. FINDINGS AND DECLARATIONS.

    The Congress finds and declares that--
            (1) reactor-grade plutonium is a direct-use material;
            (2) plutonium in all forms is hazardous to the human and 
        natural environment and is a potential radiological weapon;
            (3) nuclear reprocessing programs that produce, or are 
        intended to produce, large amounts of plutonium, especially 
        amounts of plutonium that exceed the reasonable economic needs 
        of a country, for civilian uses jeopardize the efforts of the 
        United States, other nations, and international organizations 
        to reduce the global risks of nuclear weapons proliferation, 
        nuclear terrorism, and environmental contamination;
            (4) the United States Government has suspended the 
        production of military plutonium and has abandoned civil 
        reprocessing and breeder reactor development in the United 
        States;
            (5) more than 500 metric tons of plutonium currently exist 
        in civilian nuclear fuel worldwide, more than 100 metric tons 
        of plutonium have already been separated from nuclear fuel 
        irradiated in civilian reactors, and more than 200 metric tons 
        of plutonium exist in declared nuclear weapons stockpiles;
            (6) on July 16, 1981, the President announced a policy that 
        the United States ``will not inhibit or set back civil 
        reprocessing and breeder reactor development in nations with 
        advanced nuclear power programs where it does not constitute a 
        proliferation risk'';
            (7) much of the world surplus of civil plutonium has 
        resulted from foreign nuclear reprocessing activities 
        undertaken pursuant to agreements for nuclear cooperation with 
        the United States that were negotiated or sustained under this 
        policy and that grant long-term United States approval for 
        civilian uses of plutonium recovered from United States-
        supplied nuclear fuel;
            (8) large amounts of additional civil plutonium, far 
        exceeding the amounts of plutonium now contained in nuclear 
        weapons, may soon be recovered in reprocessing plants that are 
        about to be started up or constructed in the European Community 
        and Japan under this policy;
            (9) once these new plants start up and become contaminated 
        with radiation, the environmental difficulties of shutdown and 
        clean-up increase dramatically;
            (10) abundant and inexpensive global sources of uranium and 
        uranium enrichment services have steadily eroded the economic 
        need for the use of plutonium in civilian nuclear reactors;
            (11) breeder reactors were once supposed to be the 
        principal consumers of civil plutonium but have now encountered 
        major financial and technical problems and recently have been 
        abandoned or shut down in Germany, France, and Britain and have 
        suffered major delays in Japan;
            (12) reprocessing was once regarded as an economic and 
        efficient approach to nuclear fuel recycling and waste 
        management but is now widely recognized as extremely costly and 
        posing major environmental hazards; and
            (13) the Deputy Director of the International Atomic Energy 
        Agency has recently stated that ``the excess of plutonium from 
        civilian nuclear programs poses a major political and security 
        problem worldwide''.

SEC. 402. REPORT.

    The President shall--
            (1) reexamine the policy described in section 401(6); and
            (2) not later than 90 days after the date of enactment of 
        this Act--
                    (A) take account of the significant changes in the 
                global security environment and in the global nuclear 
                market since 1981 by modifying the policy described in 
                section 401(6) to avoid the political and security 
                problems associated with excess plutonium from civilian 
                nuclear programs in the world; and
                    (B) submit a report to the Congress describing the 
                steps taken to modify the policy.

                            TITLE V--REPEAL

SEC. 501. REPEAL OF TERMINATION OF PROVISIONS OF THE NUCLEAR 
              PROLIFERATION PREVENTION ACT OF 1994.

    Part D of the Nuclear Proliferation Prevention Act of 1994 (title 
VIII of the Foreign Relations Authorization Act, Fiscal Years 1994 and 
1995; Public Law 103-236; 108 Stat. 507) is repealed.
                                 <all>
S 102 IS----2
S 102 IS----3