[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 755 Reported in Senate (RS)]

                                                       Calendar No. 244

104th CONGRESS

  1st Session

                                 S. 755

                          [Report No. 104-173]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

            November 17 (legislative day, November 16), 1995

                       Reported with an amendment
                                                       Calendar No. 244
104th CONGRESS
  1st Session
                                 S. 755

                          [Report No. 104-173]

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                  May 3 (legislative day, May 1), 1995

 Mr. Domenici (for himself, Mr. Ford, Mr. Johnston, Mr. Campbell, Mr. 
Thomas, and Mr. Simpson) introduced the following bill; which was read 
  twice and referred to the Committee on Energy and Natural Resources

            November 17 (legislative day, November 16), 1995

              Reported by Mr. Murkowski, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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,

<DELETED>SECTION 1. SHORT TITLE AND REFERENCE.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``USEC 
Privatization Act''.</DELETED>
<DELETED>    (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.).</DELETED>

<DELETED>SEC. 2. PRODUCTION FACILITY.</DELETED>

<DELETED>    Paragraph v. of section 11 (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''.</DELETED>

<DELETED>SEC. 3. DEFINITIONS.</DELETED>

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

<DELETED>SEC. 4. EMPLOYEES OF THE CORPORATION.</DELETED>

<DELETED>    (a) Paragraph (2).--Paragraphs (1) and (2) of section 
1305(e) (42 U.S.C. 2297b-4(e)(1)(2)) are amended to read as 
follows:</DELETED>
        <DELETED>    ``(1) In general.--It is the purpose of this 
        subsection to ensure that the privatization of the Corporation 
        shall not result in any adverse effects on the accrued pension 
        benefits of employees at facilities that are operated, directly 
        or under contract, in the performance of the functions vested 
        in the Corporation.</DELETED>
        <DELETED>    ``(2) Applicability of existing collective 
        bargaining agreement.--Any employer (including the Corporation) 
        at a facility that is operated, directly or under contract, in 
        the performance of the functions vested in the Corporation 
        shall abide by the terms of the collective bargaining agreement 
        in effect on the privatization date at each individual facility 
        until the earlier of the date on which the collective 
        bargaining agreement terminates or a new collective bargaining 
        agreement is executed. In the event that a collective 
        bargaining agreement has expired and is being renegotiated at a 
        facility on the privatization date, the employer shall continue 
        to observe its obligations under the National Labor Relations 
        Act.''.</DELETED>
<DELETED>    (b) Paragraph (4).--Paragraph (4) of section 1305(e) (42 
U.S.C. 2297b-4(e)(4)) is amended to read as follows:</DELETED>
        <DELETED>    ``(4) Benefits of transferees.--</DELETED>
                <DELETED>    ``(A) Employees of the Corporation who 
                were subject to either the Civil Service Retirement 
                System (CSRS) or the Federal Employees' Retirement 
                System (FERS) on the day immediately preceding the 
                privatization date pursuant to section 1305 as then in 
                effect, shall elect--</DELETED>
                        <DELETED>    ``(i) to retain their coverage 
                        under either CSRS or FERS, as applicable, in 
                        lieu of coverage by the Corporation's 
                        retirement system, or</DELETED>
                        <DELETED>    ``(ii) to receive a deferred 
                        annuity or lump-sum benefit payable to a 
                        terminated employee under CSRS or FERS, as 
                        applicable.</DELETED>
                <DELETED>Those employees electing (ii) shall have the 
                option to transfer the balance in their Thrift Savings 
                Plan account to a defined contribution plan under the 
                Corporation's retirement system, consistent with 
                applicable law and the terms of the Corporation's 
                defined contribution plan.</DELETED>
                <DELETED>    ``(B) The Corporation shall pay to the 
                Civil Service Retirement and Disability Fund--
                </DELETED>
                        <DELETED>    ``(i) such employee deductions and 
                        agency contributions as are required by 
                        sections 8334, 8422, and 8423 of title 5, 
                        United States Code, for those employees who 
                        elect to retain their coverage under either 
                        CSRS or FERS pursuant to subparagraph 
                        (A);</DELETED>
                        <DELETED>    ``(ii) such additional agency 
                        contributions as are determined necessary by 
                        the Office of Personnel Management to pay, in 
                        combination with the sums under subparagraph 
                        (i), the `normal cost' (determined using 
                        dynamic assumptions) of retirement benefits for 
                        those employees who elect to retain their 
                        coverage under CSRS pursuant to subparagraph 
                        (A), with the concept of `normal cost' being 
                        utilized consistent with generally accepted 
                        actuarial standards and principles; 
                        and</DELETED>
                        <DELETED>    ``(iii) such additional amounts, 
                        not to exceed two percent of the amounts under 
                        subparagraphs (i) and (ii), as are determined 
                        necessary by the Office of Personnel Management 
                        to pay the cost of administering retirement 
                        benefits for employees who retire from the 
                        Corporation after the privatization date under 
                        either CSRS or FERS, for their survivors, and 
                        for survivors of employees of the Corporation 
                        who die after the privatization date (which 
                        amounts shall be available to the Office of 
                        Personnel Management as provided in section 
                        8348(a)(1)(B) of title 5, United States 
                        Code).</DELETED>
                <DELETED>    ``(C) The Corporation shall pay to the 
                Thrift Savings Fund such employee and agency 
                contributions as are required by section 8432 of title 
                5, United States Code, for those employees who elect to 
                retain their coverage under FERS pursuant to 
                subparagraph (A).</DELETED>
                <DELETED>    ``(D) For those employees of the 
                Corporation who were subject to the Federal Employee 
                Health Benefits Program (FEHBP) on the day immediately 
                preceding the privatization date pursuant to section 
                1305 as then in effect and who elect to retain their 
                coverage under either CSRS or FERS pursuant to 
                subparagraph (A), it shall be their option as to 
                whether to receive health benefits from a health 
                benefit plan established by the Corporation or to 
                continue without interruption their coverage under the 
                FEHBP, in lieu of coverage by the Corporation's health 
                benefit system.</DELETED>
                <DELETED>    ``(E) The Corporation shall pay to the 
                Employees Health Benefits Fund--</DELETED>
                        <DELETED>    ``(i) such employee deductions and 
                        agency contributions as are required by section 
                        8906(a)-(f) of title 5, United States Code, for 
                        those employees who elect to retain their 
                        coverage under FEHBP pursuant to subparagraph 
                        (D); and</DELETED>
                        <DELETED>    ``(ii) such amounts as are 
                        determined necessary by the Office of Personnel 
                        Management under subparagraph (F) to reimburse 
                        the Office of Personnel Management for 
                        contributions under section 8906(g)(1) of title 
                        5, United States Code, for those employees who 
                        elect to retain their coverage under FEHBP 
                        pursuant to subparagraph (D).</DELETED>
                <DELETED>    ``(F) The amounts required under 
                subparagraph (E)(ii) shall pay the Government 
                contributions for retired employees who retire from the 
                Corporation after the privatization date under either 
                CSRS or FERS, for survivors of such retired employees, 
                and for survivors of employees of the Corporation who 
                die after the privatization date, with said amounts 
                prorated to reflect only that portion of the total 
                service of such employees and retired persons that was 
                performed for the Corporation after the privatization 
                date.''.</DELETED>

<DELETED>SEC. 5. MARKETING AND CONTRACTING AUTHORITY.</DELETED>

<DELETED>    (a) Marketing Authority.--Section 1401(a) (42 U.S.C. 
2297c(a)) is amended effective on the privatization date (as defined in 
section 1201(13) of the Atomic Energy Act of 1954) to read as 
follows:</DELETED>
<DELETED>    ``(a) Marketing Authority.--Except as provided in this 
section, the Department may not market enriched uranium (including low-
enriched uranium derived from highly enriched uranium) and uranium 
enrichment and related services after the privatization date.</DELETED>
        <DELETED>    ``(1) Right of first refusal.--The Department may 
        itself or through a marketing agent of its choice solicit a 
        purchaser for enriched uranium (including low-enriched uranium 
        derived from highly enriched uranium) and uranium enrichment 
        and related services after the privatization date using 
        competitive bidding procedures. The Corporation may obtain the 
        enriched uranium (including low-enriched uranium derived from 
        highly enriched uranium) for which the Department is seeking a 
        purchaser by--</DELETED>
                <DELETED>    ``(A) offering purchase terms that, in the 
                judgment of the Secretary, exceed the highest 
                qualifying bid received by the Department or its 
                marketing agent; or</DELETED>
                <DELETED>    ``(B) offering a bid that in the judgment 
                of the Secretary best serves the public interest for 
                financial, national security, or other 
                reasons.</DELETED>
        <DELETED>    ``(2) Marketing agent.--Without using a 
        competitive process for selecting a marketing agent, the 
        Department may use the Corporation as its marketing agent for 
        entering into contracts for providing enriched uranium 
        (including low-enriched uranium derived from highly enriched 
        uranium) and uranium enrichment and related services.</DELETED>
        <DELETED>    ``(3) Government transfers.--Nothing in this 
        section shall be construed to limit the authority of the 
        Secretary to transfer, in a manner the Secretary determines 
        appropriate, enriched uranium (including low-enriched uranium 
        derived from highly enriched uranium)--</DELETED>
                <DELETED>    ``(A) between the Department and other 
                federal agencies if the material is transferred for the 
                use of the receiving agency and does not meet 
                commercial specifications;</DELETED>
                <DELETED>    ``(B) between the Department and any 
                entity or person for national security purposes, as 
                determined by the Secretary; or</DELETED>
                <DELETED>    ``(C) between the Department and state or 
                local agencies and nonprofit, charitable or educational 
                institutions for use other than for the generation of 
                electricity for commercial use.</DELETED>
        <DELETED>    ``(4) Secretarial determination.--Prior to any 
        sale by the Department or its marketing agent under paragraph 
        (1) of enriched uranium (including low-enriched uranium derived 
        from highly enriched uranium) or uranium enrichment or related 
        services, and after the President has determined such material 
        is not necessary to national security needs, the Secretary 
        shall determine by full rulemaking with opportunity for public 
        comment that--</DELETED>
                <DELETED>    ``(A) the price paid to the Department for 
                such material will be a fair market price; 
                and</DELETED>
                <DELETED>    ``(B) the sale of such material will not 
                have an adverse impact on the domestic mining or 
                enrichment industries taking into account sales of 
                enriched uranium (including low-enriched uranium 
                derived from highly enriched uranium) under the 
                Amendment to the Agreement Suspending the Antidumping 
                Investigation on Uranium from the Russian Federation, 
                Department of Commerce Investigation No. A-821-802, 
                dated March 11, 1994, and the Agreement Between the 
                Government of the United States of America and the 
                Government of the Russian Federation Concerning the 
                Disposition of Highly Enriched Uranium Extracted from 
                Nuclear Weapons.</DELETED>
        <DELETED>    ``(5) Right to cancel proposed sale.--Nothing in 
        this section shall be interpreted to preclude the Secretary 
        from canceling a proposed sale for any reason.</DELETED>
        <DELETED>    ``(6) Uranium inventory report.--180 days prior to 
        any sale under this section, the Secretary shall submit to 
        Congress a current uranium inventory report including updated 
        information with respect to the items listed in section 2296b-5 
        of title 42 United States Code, together with information 
        regarding the proposed sale or transfer.</DELETED>
        <DELETED>    ``(7) Proceeds from sales.--Proceeds from sales 
        under this section shall be deposited into the general fund of 
        the United States Treasury.''.</DELETED>
<DELETED>    (b) Transfer of Contracts.--Section 1401(b) (42 U.S.C. 
2297c(b)) is amended--</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
        <DELETED>    ``(3) Effect of transfer.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(B) Notwithstanding the transfer 
                pursuant to paragraph (1), the United States shall 
                remain obligated to the parties to the contracts, 
                agreements, and leases transferred pursuant to 
                paragraph (1) for the performance of the obligations of 
                the United States thereunder during the term thereof. 
                The Corporation shall reimburse the United States for 
                any amount paid 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.</DELETED>
                <DELETED>    ``(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, 
                except that such action shall not release the United 
                States from obligations arising under such contract, 
                agreement, or lease prior to such time.</DELETED>
                <DELETED>    ``(D) 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 for all uranium enrichment contracts 
                transferred pursuant to paragraph (1).''.</DELETED>
<DELETED>    (c) Low-Level Radioactive Waste.--Section 1403 (42 U.S.C. 
2297c-2) is amended by adding at the end the following:</DELETED>
<DELETED>    ``(h) Obligation of the Department To Accept Low-Level 
Radioactive Waste.--</DELETED>
        <DELETED>    ``(1) At the request of the generator, the 
        Department shall accept for treatment and disposal the low-
        level radioactive waste generated--</DELETED>
                <DELETED>    ``(A) by the Corporation as a result of 
                the operation of the facilities and related property 
                leased by the Corporation pursuant to subsection (a); 
                and</DELETED>
                <DELETED>    ``(B) by any person licensed by the 
                Nuclear Regulatory Commission to operate a uranium 
                enrichment facility under sections 53, 63, and 193 of 
                the Atomic Energy Act of 1954 (42 U.S.C. 2073, 2093, 
                and 2243).</DELETED>
        <DELETED>    ``(2) The increase in costs of treatment and 
        disposal actually incurred by the Department which are solely 
        attributable to and result from the treatment and disposal of 
        such wastes received from the generator shall be paid to the 
        Department by the generator, but in no event shall such payment 
        exceed an amount equal to that which would be charged by 
        commercial entities for the treatment and disposal of such 
        wastes.</DELETED>
        <DELETED>    ``(3) At its sole discretion, the generator may, 
        but is not required to, arrange for the treatment and disposal 
        of such wastes or any portion thereof at any other facility 
        otherwise authorized by applicable laws and regulations to 
        treat or dispose of such wastes.</DELETED>
        <DELETED>    ``(4) The costs of treatment and disposal of such 
        wastes at any other facility shall be borne solely by the 
        generator.''.</DELETED>
<DELETED>    (d) Transfer of Uranium.--Title II (42 U.S.C. 2297 et 
seq.) is amended by redesignating section 1408 as section 1409 and 
inserting after section 1407 the following:</DELETED>

<DELETED>``SEC. 1408. TRANSFER OF URANIUM.</DELETED>

<DELETED>    ``(a) In General.--In addition to material transferred to 
the Corporation pursuant to the Memorandum of Agreement Relating to the 
Transfer of Functions and Activities from the Department to the 
Corporation dated December 15, 1994, the Secretary may, before the 
privatization date, transfer to the Corporation without charge the low-
enriched uranium from up to 50 metric tons of highly enriched uranium 
and up to 7,000 metric tons of natural uranium.</DELETED>
<DELETED>    ``(b) Limitation on Sale of Low-Enriched Uranium and 
Natural Uranium Transferred by the United States.--</DELETED>
        <DELETED>    ``(1) Natural uranium transferred pursuant to 
        subsection (a) by the United States to the Corporation may not 
        be delivered for commercial end use prior to January 1, 1998. 
        Beginning January 1, 1998, the total amount of such natural 
        uranium from stockpiles held by the United States or the 
        Corporation delivered in any calendar year for commercial end 
        use may not exceed ten percent of the uranium hexafluoride 
        equivalent content of the total amount of natural uranium 
        transferred pursuant to subsection (a). In no event shall the 
        total quantity of such natural uranium delivered for commercial 
        end use exceed 4 million pounds uranium hexafluoride equivalent 
        in any calendar year.</DELETED>
        <DELETED>    ``(2) Low-enriched uranium transferred pursuant to 
        subsection (a) by the United States to the Corporation may be 
        delivered for commercial end use in an amount not to exceed 
        800,000 separative work units in any calendar 
        year.''.</DELETED>

<DELETED>SEC. 6. PURCHASE OF HIGHLY ENRICHED URANIUM FROM FORMER SOVIET 
              UNION.</DELETED>

<DELETED>    Section 1409 (as redesignated) of the Atomic Energy Act of 
1954 (42 U.S.C. 2011 et seq.) is amended to read:</DELETED>
<DELETED>    ``(a) In General.--The Government of the United States, 
may, at any time after the privatization date, change the Executive 
Agent pursuant to Article III of the Agreement Between the Government 
of the United States of America and the Government of the Russian 
Federation Concerning the Disposition of Highly Enriched Uranium 
Extracted from Nuclear Weapons, dated February 18, 1993, upon 30 days 
written notice to the other Party.</DELETED>
<DELETED>    ``(b) Executive Agent on Privatization Date.--On the 
privatization date, the Executive Agent designated by the Government of 
the United States pursuant to Article III of the Agreement Between the 
Government of the United States of America and the Government of the 
Russian Federation Concerning the Disposition of Highly Enriched 
Uranium Extracted from Nuclear Weapons, dated February 18, 1993, shall 
be the Corporation.</DELETED>
<DELETED>    ``(c) Authorities and Obligations of the Executive 
Agent.--The Executive Agent is authorized to negotiate the purchase of 
all highly enriched uranium made available by any State of the former 
Soviet Union under a government-to-government agreement or shall assume 
the obligations of the Department or any previous Executive Agent under 
any contractual agreement that has been reached with any such State or 
any private entity by the Department or any previous Executive Agent. 
The Executive Agent may only purchase that material so long as the 
quality of the material can be made suitable for use in commercial 
reactors.</DELETED>
<DELETED>    ``(d)(1) The Executive Agent of the United States is 
authorized to enter into contracts for the resale of the enrichment 
component of low-enriched uranium derived from highly enriched uranium 
and purchased pursuant to an agreement under subsection (c). Upon 
delivery by the Executive Agent of the United States of such low-
enriched uranium pursuant to a contract for the sale of the enrichment 
component of such low-enriched uranium, the Executive Agent of the 
United States shall deliver an amount of uranium hexafluoride 
equivalent to the natural uranium component of such low-enriched 
uranium to the Executive Agent of the Russian Federation. The quantity 
of such uranium hexafluoride delivered to the Executive Agent of the 
Russian Federation shall be based on a 0.30 w/o tails assay.</DELETED>
<DELETED>    ``(2) Title to uranium hexafluoride delivered to the 
Executive Agent of the Russian Federation pursuant to subparagraph 
(d)(1) shall transfer to the Executive Agent of the Russian Federation 
upon delivery of such material to the Executive Agent of the Russian 
Federation.</DELETED>
<DELETED>    ``(3) Uranium hexafluoride delivered to the Executive 
Agent of the Russian Federation pursuant to subparagraph (d)(1) shall 
be deemed to be of Russian origin. Except as otherwise provided in 
paragraph (d)(4), such uranium hexafluoride shall be subject to the 
restrictions contained in the Amendment to the Agreement Suspending the 
Antidumping Investigation on Uranium from the Russian Federation, 59 
Federal Register 15373, as such restrictions were in effect on March 
11, 1994; and may also be used in the United States for the purpose of 
overfeeding in the operations of enrichment facilities or may be resold 
for end use outside the United States.</DELETED>
<DELETED>    ``(4) Beginning January 1, 2002, uranium hexafluoride 
delivered to the Executive Agent of the Russian Federation pursuant to 
subparagraph (d)(1), may be delivered for consumption by end users in 
the United States only in accordance with the following 
schedule:</DELETED>

<DELETED>Years                      Annual Maximum Deliveries
    <DELETED>2002-2011.............
                                        <DELETED>10 million lbs. 
                                                uranium hexafluoride
    <DELETED>2012-.................
                                        <DELETED>20 million lbs. 
                                                uranium hexafluoride
<DELETED>    ``(5) Material sold pursuant to subparagraph (d)(4) may be 
used for swaps and exchanges only where such swaps and exchanges are 
documented to be conducted solely for the purpose of facilitating the 
further processing and use as nuclear fuel by the end-user. The 
material shall not be loaned.''.</DELETED>

<DELETED>SEC. 7. PRIVATIZATION OF THE CORPORATION.</DELETED>

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

<DELETED>``SEC. 1503. ESTABLISHMENT OF PRIVATE CORPORATION.</DELETED>

<DELETED>    ``(a) Establishment.--</DELETED>
        <DELETED>    ``(1) In general.--In order to facilitate 
        privatization, the Corporation may provided for the 
        establishment of a private corporation organized under the laws 
        of the several States. Such corporation shall have among its 
        purposes the following:</DELETED>
                <DELETED>    ``(A) To help maintain a reliable and 
                economical domestic source of uranium enrichment 
                services.</DELETED>
                <DELETED>    ``(B) To undertake any and all activities 
                as provided in its corporate charter.</DELETED>
        <DELETED>    ``(2) Authorities.--Subject to applicable 
        licensing, certification, or other requirements under this Act, 
        the corporation established pursuant to paragraph (1) shall be 
        authorized to--</DELETED>
                <DELETED>    ``(A) enrich uranium, provide for uranium 
                to be enriched by others, or acquire enriched uranium 
                (including low-enriched uranium derived from highly 
                enriched uranium);</DELETED>
                <DELETED>    ``(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:</DELETED>
                <DELETED>    ``(C) enter into transactions regarding 
                uranium, enriched uranium, or depleted uranium with--
                </DELETED>
                        <DELETED>    ``(i) persons licensed under 
                        section 53, 63, 103, or 104 in accordance with 
                        the licenses held by those persons;</DELETED>
                        <DELETED>    ``(ii) persons in accordance with, 
                        and within the period of, an agreement for 
                        cooperation arranged under section 123; 
                        or</DELETED>
                        <DELETED>    ``(iii) persons otherwise 
                        authorized by law to enter into such 
                        transactions;</DELETED>
                <DELETED>    ``(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 or related 
                services;</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(F) take any and all such other actions 
                as are permitted by law of the jurisdiction of 
                incorporation of the corporation.</DELETED>
        <DELETED>    ``(3) Transfer of assets.--For purposes of 
        implementing the privatization, the Corporation may transfer 
        some or all of its assets and obligations and records to the 
        corporation established pursuant to this section, including--
        </DELETED>
                <DELETED>    ``(A) all the Corporation's assets and 
                obligations, including all of the Corporation's rights, 
duties, and obligations accruing subsequent to the privatization date 
under contracts, agreements, and leases entered into by the Corporation 
before the privatization date, including all uranium enrichment 
contracts and power purchase contracts;</DELETED>
                <DELETED>    ``(B) all funds in accounts of the 
                Corporation held by the Treasury or on deposit with any 
                bank or other financial institution;</DELETED>
                <DELETED>    ``(C) all of the Corporation's rights to 
                purchase power from the Secretary under the power 
                purchase contracts covered by section 1401(b)(2)(B); 
                and</DELETED>
                <DELETED>    ``(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 
                1403; and</DELETED>
                <DELETED>    ``(E) all of the Corporation's records, 
                including all of the papers and other documentary 
                materials, regardless of physical form or 
                characteristics, made or received by the 
                Corporation.</DELETED>
        <DELETED>    ``(4) Merger or consolidation.--For purposes of 
        implementing the privatization, the Corporation may merge or 
        consolidate with the corporation established pursuant to 
        subsection (a)(1) if such action is contemplated by the plan 
        for privatization approved by the President under section 
        1502(b). 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.</DELETED>
        <DELETED>    ``(5) Tax treatment of privatization.--</DELETED>
                <DELETED>    ``(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 subsection (a)(1) in connection 
                with the privatization.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(6) Activities prior to privatization.--Prior to 
        privatization, the activities of the corporation established 
        pursuant to subsection (a)(1) shall be limited to those 
        contemplated by the privatization plan approved by the 
        President under section 1502(b).</DELETED>
<DELETED>    ``(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 
subsection (a)(1) 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 Administration 
governing the scope of their respective regulatory authorities shall 
apply to the corporation as if the corporation were a Nuclear 
Regulatory Commission licensee.</DELETED>
<DELETED>    ``(c) Legal Status of Private Corporation.--</DELETED>
        <DELETED>    ``(1) Not federal agency.--The corporation 
        established pursuant to subsection (a)(1) shall not be an 
        agency of the United States Government and shall not be a 
        Government corporation or Government-controlled corporation. 
        For purposes of United States antitrust laws, the performance 
        by the corporation established pursuant to subsection (a)(1) of 
        a `matched import' contract shall be considered to have 
        occurred prior to the privatization date, if at the time of 
        privatization, such contract had been agreed to by the parties 
        in all material terms and confirmed by the United States 
        Department of Commerce under the Amendment to the Agreement 
        Suspending the Antidumping Investigation on Uranium from the 
Russian Federation, Department of Commerce Investigation No. A-821-802, 
dated March 11, 1994.</DELETED>
        <DELETED>    ``(2) No recourse against united states.--
        Obligations of the corporation established pursuant to 
        subsection (a)(1) 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.</DELETED>
        <DELETED>    ``(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 subsection 
        (a)(1).</DELETED>
<DELETED>    ``(d) Board of Director's Election After Public 
Offering.--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.''.</DELETED>
<DELETED>    (b) Ownership Limitations.--Chapter 25 (as amended by 
subsection (a)) is amended by adding at the end the following new 
section:</DELETED>

<DELETED>``SEC. 1504. OWNERSHIP LIMITATIONS.</DELETED>

<DELETED>    ``(a) Securities Limitation.--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.</DELETED>
<DELETED>    ``(b) Application.--Subsection (a) shall not apply--
</DELETED>
        <DELETED>    ``(1) to any employee stock ownership plan of the 
        Corporation,</DELETED>
        <DELETED>    ``(2) to underwriting syndicates holding shares 
        for resale, or</DELETED>
        <DELETED>    ``(3) in the case of shares beneficially held for 
        others, to commercial banks, broker-dealers, clearing 
        corporations, or other nominees.</DELETED>
<DELETED>    ``(c) No director, officer, or employee of the Corporation 
may acquire any securities, or any rights to acquire securities of the 
Corporation on terms more favorable than those offered to the general 
public--</DELETED>
        <DELETED>    ``(1) in the public offering of securities of the 
        Corporation in the implementation of the 
        privatization,</DELETED>
        <DELETED>    ``(2) pursuant to any agreement, arrangement, or 
        understanding entered into before the privatization date, 
        or</DELETED>
        <DELETED>    ``(3) before the election of directors of the 
        Corporation under section 1503(d).''.</DELETED>
<DELETED>    (c) Exemption From Liability.--Chapter 25 (as amended by 
subsection (b)) is amended by adding at the end the following new 
section:</DELETED>

<DELETED>``SEC. 1505. EXEMPTION FROM LIABILITY.</DELETED>

<DELETED>    ``(a) In General.--No director, officer, employee, or 
agent of the Corporations 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.</DELETED>
<DELETED>    ``(b) Exception.--The exemption set forth in subsection 
(a) shall not apply to claims arising under the Securities Act of 1933, 
the Securities Exchange Act of 1934 or under 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.</DELETED>
<DELETED>    ``(c) Securities Laws Applicable.--Any offering or sale of 
securities by the corporation established pursuant to section 
1503(a)(1) shall be subject to the Securities Act of 1933, the 
Securities Exchange Act of 1934 and the provisions of the Constitution 
and laws of any State, territory, or possession of the United States 
relating to transactions in securities.''.</DELETED>
<DELETED>    (d) Resolution of Certain Issues.--Chapter 25 (as 
amended by subsection (c)) is amended by adding at the end the 
following new section:</DELETED>

<DELETED>``SEC. 1506. RESOLUTION OF CERTAIN ISSUES.</DELETED>

<DELETED>    ``(a) Corporation Actions.--Notwithstanding any provision 
of any agreement to which the Corporation is a party, the Corporation 
shall not be considered to be in breach, default, or violation of any 
such agreement because of any provision of this chapter or any action 
the Corporation is required to take under this chapter.</DELETED>
<DELETED>    ``(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.''.</DELETED>
<DELETED>    (e) Application of Privatization Proceeds.--Chapter 25 (as 
amended by subsection (d)) is amended by adding at the end the 
following new section:</DELETED>

<DELETED>``SEC. 1507. APPLICATION OF PRIVATIZATION PROCEEDS.</DELETED>

<DELETED>    ``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.''.</DELETED>
<DELETED>    (f) Conforming Amendment.--The table of contents for 
chapter 25 is amended by inserting after the item for section 1502 the 
following:</DELETED>

<DELETED>``Sec. 1503. Establishment of private corporation.
<DELETED>``Sec. 1504. Ownership limitations.
<DELETED>``Sec. 1505. Exemption from liability.
<DELETED>``Sec. 1506. Resolution of certain issues.
<DELETED>``Sec. 1507. Application of privatization proceeds.''.
<DELETED>    (g) Section 193 (42 U.S.C. 2243) is amended by adding at 
the end the following:</DELETED>
<DELETED>    ``(f) Limitation.--No license or certificate of compliance 
may be issued to the Corporation under section 53, 63, 193, or 1701, if 
in the opinion of the Nuclear Regulatory Commission, the issuance of 
such a license or certificate of compliance to the Corporation would be 
inimical to the common defense and security of the United States due to 
the nature and extent of the ownership, control or domination of the 
Corporation by a foreign corporation or a foreign government or any 
other relevant factors or circumstances.''.</DELETED>

<DELETED>SEC. 8. PERIODIC CERTIFICATION OF COMPLIANCE.</DELETED>

<DELETED>    Section 1701(c)(2) (42 U.S.C. 2297f(c)(2)) is amended by 
striking ``Annual application for certificate of compliance.--The 
Corporation shall apply at least 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.''.</DELETED>

<DELETED>SEC. 9. LICENSING OF OTHER TECHNOLOGIES.</DELETED>

<DELETED>    Subsection (a) of section 1702 (42 U.S.C. 2297f-1(a)) is 
amended--</DELETED>
        <DELETED>    (1) by striking ``other than'' and inserting 
        ``including'', and</DELETED>
        <DELETED>    (2) by striking ``sections 53 and 63'' and 
        inserting ``sections 53, 63, and 193''.</DELETED>

<DELETED>SEC. 10. JUDICIAL REVIEW OF NUCLEAR REGULATORY COMMISSION 
              ACTIONS.</DELETED>

<DELETED>    Section 189 of the Atomic Energy Act of 1954 (42 U.S.C. 
2239(b)) is amended to read as follows:</DELETED>
<DELETED>    ``(b) The following Commission actions shall be subject to 
judicial review in the manner prescribed in chapter 158 of title 28, 
United States Code and chapter 7 of title 5, United States 
Code:</DELETED>
        <DELETED>    ``(1) Any final order entered in any proceeding of 
        the kind specified in subsection (a) above.</DELETED>
        <DELETED>    ``(2) Any final order allowing or prohibiting a 
        facility to begin operating under a combined construction and 
        operating license.</DELETED>
        <DELETED>    ``(3) Any final order establishing by regulation 
        standards to govern the gaseous diffusion uranium enrichment 
        facilities of the Department of Energy, including any such 
        facilities leased to a corporation established pursuant to 
        section 1503.</DELETED>
        <DELETED>    ``(4) Any final determination relating to whether 
        the gaseous diffusion uranium enrichment facilities of the 
        Department of Energy, including any such facilities leased to a 
        corporation established pursuant to section 1503, are in 
        compliance with the Commission's standards governing the 
        gaseous diffusion uranium enrichment facilities of the 
        Department of Energy and all applicable laws.''.</DELETED>

<DELETED>SEC. 11. CIVIL MONETARY PENALTIES FOR VIOLATIONS OF LICENSING 
              OR CERTIFICATION REQUIREMENTS.</DELETED>

<DELETED>    (a) In General.--Subsection 234 of the Atomic Energy Act 
of 1954 (42 U.S.C. 2282(a)) is amended to read as follows:</DELETED>
<DELETED>    ``(a) Civil Penalties.--</DELETED>
        <DELETED>    ``(1) In general.--A person who--</DELETED>
                <DELETED>    ``(A) violates--</DELETED>
                        <DELETED>    ``(i) a licensing provision of 
                        section 53, 57, 62, 63, 81, 82, 101, 103, 104, 
                        107, or 109, or any rule, regulation, or order 
                        issued under the provision;</DELETED>
                        <DELETED>    ``(ii) a certification provision 
                        of section 1701, or any rule or regulation 
                        issued under the provision; or</DELETED>
                        <DELETED>    ``(iii) a term, condition, or 
                        limitation of a license or certification issued 
                        under a section referred to in clause (i) or 
                        (ii); or</DELETED>
                <DELETED>    ``(B) commits a violation for which a 
                license may be revoked under section 186 or a 
                certificate may be revoked under section 
                1701;</DELETED>
        <DELETED>shall be subject to a civil penalty, to be imposed by 
        the Commission, of not to exceed $100,000 for each 
        violation.</DELETED>
        <DELETED>    ``(2) Continuing violations.--If a violation 
        described in paragraph (1) continues for more than 1 day, each 
        day of the violation shall constitute a separate violation for 
        the purpose of determining the applicable civil 
        penalty.</DELETED>
        <DELETED>    ``(3) Modification of penalty.--The Commission may 
        compromise, mitigate, or remit a penalty required to be imposed 
        under this subsection.''.</DELETED>
<DELETED>    (b) Conforming Amendments.--</DELETED>
        <DELETED>    (1) Section 234 of such Act (42 U.S.C. 2282) is 
        amended--</DELETED>
                <DELETED>    (A) in the section heading, by inserting 
                ``or certification'' after ``licensing'';</DELETED>
                <DELETED>    (B) by inserting after ``(b)'', the 
                following: ``Notification by the Commission.--''; 
                and</DELETED>
                <DELETED>    (C) by inserting after ``(c)'' the 
                following: ``Action by the Attorney General.--
                ''.</DELETED>
        <DELETED>    (2) The table of contents of such Act (42 U.S.C. 
        prec. 2011) is amended by striking the item relating to section 
        234 and inserting the following new item:</DELETED>

<DELETED>``Sec. 234. Civil monetary penalties for violations of 
                            licensing or certification requirements.''.

<DELETED>SEC. 12. CONFORMING AMENDMENTS.</DELETED>

<DELETED>    (a) Repeals in Atomic Energy Act of 1954 as of the 
Privatization Date.--</DELETED>
        <DELETED>    (1) Repeals.--As of the privatization date (as 
        defined in section 1201(13) of the Atomic Energy Act of 1954), 
        the following sections (as in effect on such privatization 
        date) of the Atomic Energy Act of 1954 are repealed:</DELETED>
                <DELETED>    (A) Section 1202.</DELETED>
                <DELETED>    (B) Sections 1301 through 1304.</DELETED>
                <DELETED>    (C) Sections 1306 through 1316.</DELETED>
                <DELETED>    (D) Section 1402.</DELETED>
                <DELETED>    (E) Sections 1404 and 1405.</DELETED>
                <DELETED>    (F) Section 1601.</DELETED>
                <DELETED>    (G) Sections 1603 through 1607.</DELETED>
        <DELETED>    (2) Conforming amendment.--The table of contents 
        of such Act is amended by repealing the items referring to 
        sections repealed by paragraph (1).</DELETED>
<DELETED>    (b) Statutory Modifications.--As of such privatization 
date, the following shall take effect:</DELETED>
        <DELETED>    (1) For purposes of title I of the Atomic Energy 
        Act of 1954, all references in such Act to the ``United States 
        Enrichment Corporation'' shall be deemed to be references to 
        the corporation established pursuant to section 1503 of the 
        Atomic Energy Act of 1954 (as added by section 7(a)).</DELETED>
        <DELETED>    (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.''.</DELETED>
        <DELETED>    (3) Section 9101(3) of title 31, United States 
        Code, is amended by striking subparagraph (N), as added by 
        section 902(b) of Public Law 102-486.</DELETED>
<DELETED>    (c) Revision of Section 1305.--As of such privatization 
date, section 1305 of the Atomic Energy Act of 1954 (42 U.S.C. 2297b-4) 
is amended--</DELETED>
        <DELETED>    (1) by repealing subsections (a), (b), (c), and 
        (d), and</DELETED>
        <DELETED>    (2) in subsection (e)--</DELETED>
                <DELETED>    (A) by striking the subsection designation 
                and heading,</DELETED>
                <DELETED>    (B) by redesignating paragraphs (1) and 
                (2) (as added by section 4(a)) as subsections (a) and 
                (b) and by moving the margins 2-ems to the 
                left,</DELETED>
                <DELETED>    (C) by striking paragraph (3), 
                and</DELETED>
                <DELETED>    (D) by redesignating paragraph (4) (as 
                amended by section 4(b)) as subsection (c), and by 
                moving the margins 2-ems to the left.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``USEC Privatization Act''.

SEC. 2. PURPOSE.

    The purpose of this chapter is to transfer the interest of the 
United States in the United States Enrichment Corporation to the 
private sector in a manner that provides for the long-term viability of 
the Corporation, provides for the continuation by the Corporation of 
the operation of the Department of Energy's gaseous diffusion plants, 
provides for the protection of the public interest in maintaining a 
reliable and economical domestic source of uranium mining and 
enrichment services, and, to the extent not inconsistent with such 
purposes, secures the maximum proceeds to the United States.

SEC. 3. DEFINITIONS.

    For purposes of this title:
            (1) The term ``AVLIS'' means atomic vapor laser isotope 
        separation technology.
            (2) The term ``Corporation'' means the United States 
        Enrichment Corporation and, unless the context otherwise 
        requires, includes the private corporation and any successor 
        thereto following privatization.
            (3) The term ``gaseous diffusion plants'' means the Paducah 
        Gaseous Diffusion Plant at Paducah, Kentucky and the Portsmouth 
        Gaseous Diffusion Plant at Piketon, Ohio.
            (4) The term ``highly enriched uranium'' means uranium 
        enriched to 20 percent or more of the uranium-235 isotope.
            (5) The term ``low-enriched uranium'' means uranium 
        enriched to less than 20 percent of the uranium-235 isotope, 
        including that which is derived from highly enriched uranium.
            (6) The term ``low-level radioactive waste'' has the 
        meaning given such term in section 2(9) of the Low-Level 
        Radioactive Waste Policy Act (42 U.S.C. 2021b(9)).
            (7) The term ``private corporation'' means the corporation 
        established under section 5.
            (8) The term ``privatization'' means the transfer of 
        ownership of the Corporation to private investors.
            (9) The term ``privatization date'' means the date on which 
        100 percent of the ownership of the Corporation has been 
        transferred to private investors.
            (10) The term ``public offering'' means an underwritten 
        offering to the public of the common stock of the private 
        corporation pursuant to section 4.
            (11) The ``Russian HEU Agreement'' means the Agreement 
        Between the Government of the United States of America and the 
        Government of the Russian Federation Concerning the Disposition 
        of Highly Enriched Uranium Extracted from Nuclear Weapons, 
        dated February 18, 1993.
            (12) The term ``Secretary'' means the Secretary of Energy.
            (13) The ``Suspension Agreement'' means the Agreement to 
        Suspend the Antidumping Investigation on Uranium from the 
        Russian Federation, as amended.
            (14) The term ``uranium enrichment'' means the separation 
        of uranium of a given isotopic content into 2 components, 1 
        having a higher percentage of a fissile isotope and 1 having a 
        lower percentage.

SEC. 4. SALE OF THE CORPORATION.

    (a) Authorization.--The Board of Directors of the Corporation, with 
the approval of the Secretary of the Treasury, shall transfer ownership 
of the assets and obligations of the Corporation to the private 
corporation established under section 5 (which may be consummated 
through a merger or consolidation effected in accordance with, and 
having the effects provided under, the laws of the state of 
incorporation of the private corporation, as if the Corporation were 
incorporated thereunder).
    (b) Board Determination.--The Board, with the approval of the 
Secretary of the Treasury, shall select the method of transfer and 
establish terms and conditions for the transfer that will provide the 
maximum proceeds to the Treasury of the United States and will provide 
for the long-term viability of the private corporation, the continued 
operation of the gaseous diffusion plants, and the public interest in 
maintaining a reliable and economical domestic uranium mining and 
enrichment industries.
    (c) Application of Securities Laws.--Any offering or sale of 
securities by the private corporation shall be subject to the 
Securities Act of 1933 (15 U.S.C. 77a et seq.), the Securities Exchange 
Act of 1934 (15 U.S.C. 78a et seq.), and the provisions of the 
Constitution and laws of any State, territory, or possession of the 
United States relating to transactions in securities.
    (d) Proceeds.--Proceeds from the sale of the United States' 
interest in the Corporation shall be--
            (1) deposited in the general fund of the Treasury;
            (2) included in the budget baseline required by the 
        Balanced Budget and Emergency Deficit Control Act of 1985; and
            (3) counted as an offset to direct spending for purposes of 
        section 252 of such Act, notwithstanding section 257(e) of such 
        Act.
    (e) Expenses.--Expenses of privatization shall be paid from 
Corporation revenue accounts in the United States Treasury.

SEC. 5. ESTABLISHMENT OF PRIVATE CORPORATION.

    (a) Incorporation.--(1) The directors of the Corporation shall 
establish a private for-profit corporation under the laws of a state 
for the purpose of receiving the assets and obligations of the 
Corporation at privatization and continuing the business operations of 
the Corporation following privatization.
    (2) The directors of the Corporation may serve as incorporators of 
the private corporation and shall take all steps necessary to establish 
the private corporation, including the filing of articles of 
incorporation consistent with the provisions of this Act.
    (3) Employees and officers of the Corporation (including members of 
the Board of Directors) acting in accordance with this section on 
behalf of the private corporation shall be deemed to be acting in their 
official capacities as employees or officers of the Corporation for 
purposes of 18 U.S.C. 205.
    (b) Status of the Private Corporation.--(1) The private corporation 
shall not be an agency, instrumentality, or establishment of the United 
States, a Government corporation, or a Government-controlled 
corporation.
    (2) Except as otherwise provided by this Act, financial obligations 
of the private corporation 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 action under section 1491 of title 28, United States Code, 
shall be allowable against the United States based on actions of the 
private corporation.
    (c) Application of Post-Government Employment Restrictions.--
Beginning on the privatization date, the restrictions of 18 U.S.C. 207 
(a), (b), (c), and (d) shall not apply to the acts of an individual 
done in carrying out official duties as a director, officer, or 
employee of the private corporation, if the individual was an officer 
or employee of the Corporation (including a director) continuously 
during the 45 days prior to the privatization date.
    (d) Dissolution.--In the event that the privatization does not 
occur, the Corporation will provide for the dissolution of the private 
corporation within 1 year of the private corporation's incorporation 
unless the Secretary of the Treasury or his delegate, upon the 
Corporation's request, agrees to delay any such dissolution for an 
additional year.

SEC. 6. TRANSFERS TO THE PRIVATE CORPORATION.

    Concurrennt with privatization, the Corporation shall transfer to 
the private corporation--
            (1) the lease of the gaseous diffusion plants in accordance 
        with section 7,
            (2) all personal property and inventories of the 
        Corporation,
            (3) all contracts, agreements, and leases under section 
        8(a),
            (4) the Corporation's right to purchase power from the 
        Secretary under section 8(b),
            (5) such funds in accounts of the Corporation held by the 
        Treasury or on deposit with any bank or other financial 
        institution as approved by the Secretary of the Treasury, and
            (6) all of the Corporation's records, including all of the 
        papers and other documentary materials, regardless of physical 
        form or characteristics, made or received by the Corporation.

SEC. 7. LEASING OF GASEOUS DIFFUSION FACILITIES.

    (a) Transfer of Lease.--Concurrent with privatization, the 
Corporation shall transfer to the private corporation the lease of the 
gaseous diffusion plants and related property for the remainder of the 
term of such lease in accordance with the terms of such lease.
    (b) Renewal.--The private corporation shall have the exclusive 
option to lease the gaseous diffusion plants and related property for 
additional periods following the expiration of the initial term of the 
lease.
    (c) Exclusion of Facilities for Production of Highly Enriched 
Uranium.--The Secretary shall not lease to the private corporation any 
facilities necessary for the production of highly enriched uranium but 
may, subject to the requirements of the Atomic Energy Act of 1954 (42 
U.S.C. 2011 et seq.), grant the Corporation access to such facilities 
for purposes other than the production of highly enriched uranium.
    (d) DOE Responsibility for Preexisting Conditions.--The payment of 
any costs of decontamination and decommissioning, response actions, or 
corrective actions with respect to conditions existing before July 1, 
1993, at the gaseous diffusion plants shall remain the sole 
responsibility of the Secretary.
    (e) Environmental Audit.--For purposes of subsection (d), the 
conditions existing before July 1, 1993, at the gaseous diffusion 
plants shall be determined from the environmental audit conducted 
pursuant to section 1403(e) of the Atomic Energy Act of 1954 (42 U.S.C. 
2297c-2(e)).
    (f) Treatment Under Price-Anderson Provisions.--Any lease executed 
between the Secretary and the Corporation or the private corporation, 
and any extension or renewal thereof, under this section shall be 
deemed to be a contract for purposes of section 170d. of the Atomic 
Energy Act of 1954 (42 U.S.C. 2210(d)).
    (g) Waiver of EIS Requirement.--The execution or transfer of the 
lease between the Secretary and the Corporation or the private 
corporation, and any extension or renewal thereof, shall not be 
considered a major Federal action significantly affecting the quality 
of the human environment for purposes of section 102 of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332).

SEC. 8. TRANSFER OF CONTRACTS.

    (a) Transfer of Contracts.--Concurrent with privatization, the 
Corporation shall transfer to the private corporation all contracts, 
agreements, and leases, including all uranium enrichment contracts, 
that were--
            (1) transferred by the Secretary to the Corporation 
        pursuant to section 1401(b) of the Atomic Energy Act of 1954 
        (42 U.S.C. 2297c(b)), or
            (2) entered into by the Corporation before the 
        privatization date.
    (b) Nontransferable Power Contracts.--The Corporation shall 
transfer to the private corporation the right to purchase power from 
the Secretary under the power purchase contracts for the gaseous 
diffusion plants executed by the Secretary before July 1, 1993. The 
Secretary shall continue to receive power for the gaseous diffusion 
plants under such contracts and shall continue to resell such power to 
the private corporation at cost during the term of such contracts.
    (c) Effect of Transfer.--(1) Notwithstanding subsection (a), the 
United States shall remain obligated to the parties to the contracts, 
agreements, and leases transferred under subsection (a) for the 
performance of its obligations under such contracts, agreements, or 
leases during their terms. Performance of such obligations by the 
private corporation shall be considered performance by the United 
States.
    (2) If a contract, agreement, or lease transferred under subsection 
(a) is terminated, extended, or materially amended after the 
privatization date--
            (A) the private corporation shall be responsible for any 
        obligation arising under such contract, agreement, or lease 
        after any extension or material amendment, and
            (B) the United States shall be responsible for any 
        obligation arising under the contract, agreement, or lease 
        before the termination, extension, or material amendment.
    (3) The private corporation shall reimburse the United States for 
any amount paid by the United States under a settlement agreement 
entered into with the consent of the private corporation or under a 
judgment, if the settlement or judgment--
            (A) arises out of an obligation under a contract, 
        agreement, or lease transferred under subsection (a), and
            (B) arises out of actions of the private corporation 
        between the privatization date and the date of a termination, 
        extension, or material amendment of such contract, agreement, 
        or lease.
    (d) Pricing.--The Corporation may 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.

SEC. 9. LIABILITIES.

    (a) Liability of the United States.--(1) Except as otherwise 
provided in this Act, all liabilities arising out of the operation of 
the uranium enrichment enterprise before July 1, 1993, shall remain the 
direct liabilities of the Secretary.
    (2) Except as provided in subsection (a)(3) or otherwise provided 
in a memorandum of agreement entered into by the Corporation and the 
Office of Management and Budget prior to the privatization date, all 
liabilities arising out of the operation of the Corporation between 
July 1, 1993, and the privatization date shall remain the direct 
liabilities of the United States.
    (3) All liabilities arising out of the disposal of depleted uranium 
generated by the Corporation between July 1, 1993, and the 
privatization date shall become the direct liabilities of the 
Secretary.
    (4) 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, the privatization of the Corporation is hereby 
withdrawn.
    (5) To the extent that any claim against the United States under 
this section is of the type otherwise required by federal statute or 
regulation to be presented to a federal agency or official for 
adjudication or review, such claim shall be presented to the Department 
of Energy in accordance with procedures to be established by the 
Secretary. Nothing in this paragraph shall be construed to impose on 
the Department of Energy liability to pay any claim presented pursuant 
to this paragraph.
    (6) The Attorney General shall represent the United States in any 
action seeking to impose liability under this subsection.
    (b) Liability of the Corporation.--Notwithstanding any provision of 
any agreement to which the Corporation is a party, the Corporation 
shall not be considered in breach, default, or violation of any 
agreement because of the transfer of such agreement to the private 
corporation under section 8 or any other action the Corporation is 
required to take under this Act.
    (c) Liability of the Private Corporation.--Except as provided in 
this Act, the private corporation shall be liable for any liabilities 
arising out of its operations after the privatization date.
    (d) Liability of Officers and Directors.--(1) No officer, director, 
employee, or agent of the Corporation shall be liable in any civil 
proceeding to any party in connection with any action taken in 
connection with the privatization if, with respect to the subject 
matter of the action, suit, or proceeding, such person was acting 
within the scope of his employment.
    (2) This subsection shall not apply to claims arising under the 
Securities Act of 1933 (15 U.S.C. 77a. et seq.), the Securities 
Exchange Act of 1934 (15 U.S.C. 78a. et seq.), or under the 
Constitution or laws of any State, territory, or possession of the 
United States relating to transactions in securities.

SEC. 10. EMPLOYEE PROTECTIONS.

    (a) Contractor Employees.--(1) Privatization shall not diminish the 
accrued, vested pension benefits of employees of the Corporation's 
operating contractor at the two gaseous diffusion plants.
    (2) In the event that the private corporation terminates or changes 
the contractor at either or both of the gaseous diffusion plants, the 
plan sponsor or other appropriate fiduciary of the pension plan 
covering employees of the prior operating contractor shall arrange for 
the transfer of all plan assets and liabilities relating to accrued 
pension benefits of such plan's participants and beneficiaries from 
such plant to a pension plan sponsored by the new contractor or the 
private corporation or a joint labor-management plan, as the case may 
be.
    (3) In addition to any obligations arising under the National Labor 
Relations Act (29 U.S.C. 151 et seq.), any employer (including the 
private corporation if it operates a gaseous diffusion plant without a 
contractor or any contractor of the private corporation) at a gaseous 
diffusion plant shall--
            (A) abide by the terms of any unexpired collective 
        bargaining agreement covering employees in bargaining units at 
        the plant and in effect on the privatization date until the 
        stated expiration or termination date of the agreement; or
            (B) in the event a collective bargaining agreement is not 
        in effect upon the privatization date, have the same bargaining 
        obligations under section 8(d) of the National Labor Relations 
        Act (29 U.S.C. 158(d)) as it had immediately before the 
        privatization date.
    (4) If the private corporation replaces its operating contractor at 
a gaseous diffusion plant, the new employer (including the new 
contractor or the private corporation if it operates a gaseous 
diffusion plant without a contractor) shall--
            (A) offer employment to non-management employees of the 
        predecessor contractor to the extent that their jobs still 
        exist or they are qualified for new jobs, and
            (B) abide by the terms of the predecessor contractor's 
        collective bargaining agreement until the agreement expires or 
        a new agreement is signed.
    (5) In the event of a plant closing or mass layoff (as such terms 
are defined in section 2101(a)(2) and (3) of title 29, United States 
Code) at either of the gaseous diffusion plants, the Secretary of 
Energy shall treat any adversely affected employee of an operating 
contractor at either plant who was an employee at such plant on July 1, 
1993, as a Department of Energy employee for purposes of sections 3161 
and 3162 of the National Defense Authorization Act for Fiscal Year 1993 
(42 U.S.C. 7274h-7274i).
    (6)(A) The Secretary and the private corporation shall cause the 
post-retirement health benefits plan provider (or its successor) to 
continue to provide benefits for persons employed by an operating 
contractor at either of the gaseous diffusion plants in an economically 
efficient manner and at substantially the same level of coverage as 
eligible retirees are entitled to receive on the privatization date.
    (B) Person eligible for coverage under subparagraph (A) shall be 
limited to--
            (i) persons who retired from active employment at one of 
        the gaseous diffusion plants on or before the privatization 
        date as vested participants in a pension plan maintained either 
        by the Corporation's operating contractor or by a contractor 
        employed prior to July 1, 1993, by the Department of Energy to 
        operate a gaseous diffusion plant; and
            (ii) persons who are employed by the Corporation's 
        operating contractor on or before the privatization date and 
        are vested participants in a pension plan maintained either by 
        the Corporation's operating contractor or by a contractor 
        employed prior to July 1, 1993, by the Department of Energy to 
        operate a gaseous diffusion plant.
    (C) The Secretary shall fund the entire cost of post-retirement 
health benefits for persons who retired from employment with an 
operating contractor prior to July 1, 1993.
    (D) The Secretary and the Corporation shall fund the cost of post-
retirement health benefits for persons who retire from employment with 
an operating contractor on or after July 1, 1993, in proportion to the 
retired person's years and months of service at a gaseous diffusion 
plant under their respective management.
    (7)(A) Any suit under this subsection alleging a violation of an 
agreement between an employer and a labor organization shall be brought 
in accordance with section 301 of the Labor Management Relations Act 
(29 U.S.C. 185).
    (B) Any charge under this subsection alleging an unfair labor 
practice violative of section 8 of the National Labor Relations Act (29 
U.S.C. 158) shall be pursued in accordance with section 10 of the 
National Labor Relations Act (29 U.S.C. 160).
    (C) Any suit alleging a violation of any provision of this 
subsection, to the extent it does not allege a violation of the 
National Labor Relations Act may be brought in any district court of 
the United States having jurisdiction over the parties, without regard 
to the amount in controversy or the citizenship of the parties.
    (b) Former Federal Employees.--(1)(A) An employee of the 
Corporation that was subject to either the Civil Service Retirement 
System (CSRS) or the Federal Employees' Retirement System (FERS) on the 
day immediately preceding the privatization date shall elect--
            (i) to retain their coverage under either CSRS or FERS, as 
        applicable, in lieu of coverage by the Corporation's retirement 
        system, or
            (ii) to receive a deferred annuity or lump-sum benefit 
        payable to a terminated employee under CSRS or FERS, as 
        applicable.
    (B) An employee that makes the election under subparagraph (A)(ii) 
shall have the option to transfer the balance in their Thrift Savings 
Plan account to a defined contribution plan under the Corporation's 
retirement system, consistent with applicable law and the terms of the 
Corporation's defined contribution plan.
    (2) The Corporation shall pay to the Civil Service Retirement and 
Disability Fund--
            (A) such employee deductions and agency contributions as 
        are required by sections 8334, 8422, and 8423 of title 5, 
        United States Code, for those employees who elect to retain 
        their coverage under either CSRS or FERS pursuant to paragraph 
        (1);
            (B) such additional agency contributions as are determined 
        necessary by the Office of Personnel Management to pay, in 
        combination with the sums under subparagraph (A), the ``normal 
        cost'' (determined using dynamic assumptions) of retirement 
        benefits for those employees who elect to retain their coverage 
        under CSRS pursuant to paragraph (1), with the concept of 
        ``normal cost'' being used consistent with generally accepted 
        actuarial standards and principles; and
            (C) such additional amounts, not to exceed two percent of 
        the amounts under subparagraphs (A) and (B), as are determined 
        necessary by the Office of Personnel Management to pay the cost 
        of administering retirement benefits for employees who retire 
        from the Corporation after the privatization date under either 
        CSRS or FERS, for their survivors, and for survivors of 
        employees of the Corporation who die after the privatization 
        date (which amounts shall be available to the Office of 
        Personnel Management as provided in section 8348(a)(1)(B) of 
        title 5, United States Code).
    (3) The Corporation shall pay to the Thrift Savings Fund such 
employee and agency contributions as are required by section 8432 of 
title 5, United States Code, for those employees who elect to retain 
their coverage under FERS pursuant to paragraph (1).
    (4) Any employee of the Corporation who was subject to the Federal 
Employee Health Benefit Program (FEHBP) on the day immediately 
preceding the privatization date and who elects to retain coverage 
under either CSRS or FERS pursuant to paragraph (1) shall have the 
option to receive health benefits from a health benefit plan 
established by the Corporation or to continue without interruption 
coverage under the FEHBP, in lieu of coverage by the Corporation's 
health benefit system.
    (5) The Corporation shall pay to the Employees Health Benefits 
Fund--
            (A) such employee deductions and agency contributions as 
        are required by section 8906(a)-(f) of title 5, United States 
        Code, for those employees who elect to retain their coverage 
        under FEHBP pursuant to paragraph (4); and
            (B) such amounts as are determined necessary by the Office 
        of Personnel Management under paragraph (6) to reimburse the 
        Office of Personnel Management for contributions under section 
        8906(g)(1) of title 5, United States Code, for those employees 
        who elect to retain their coverage under FEHBP pursuant to 
        paragraph (4).
    (6) The amounts required under paragraph (5)(B) shall pay the 
Government contributions for retired employees who retire from the 
Corporation after the privatization date under either CSRS or FERS, for 
survivors of such retired employees, and for survivors of employees of 
the Corporation who die after the privatization date, with said amounts 
prorated to reflect only that portion of the total service of such 
employees and retired persons that was performed for the Corporation 
after the privatization date.

SEC. 11. OWNERSHIP LIMITATIONS.

    No director, officer, or employee of the Corporation may acquire 
any securities, or any rights to acquire any securities of the private 
corporation on terms more favorable than those offered to the general 
public--
            (1) in a public offering designed to transfer ownership of 
        the Corporation to private investors,
            (2) pursuant to any agreement, arrangement, or 
        understanding entered into before the privatization date, or
            (3) before the election of the directors of the private 
        corporation.

SEC. 12. URANIUM TRANSFERS AND SALES.

    (a) Transfers and Sales by the Secretary.--The Secretary shall not 
provide enrichment services or transfer or sell any uranium (including 
natural uranium concentrates, natural uranium hexafluoride, or enriched 
uranium in any form) to any person except as consistent with this 
section.
    (b) Russian HEU.--(1) On or before December 31, 1996, the United 
States Executive Agent under the Russian HEU Agreement shall transfer 
to the Secretary without charge title to an amount of uranium 
hexafluoride equivalent to the natural uranium component of low-
enriched uranium derived from at least 18 metric tons of highly 
enriched uranium purchased from the Russian Executive Agent under the 
Russian HEU Agreement. The quantity of such uranium hexafluoride 
delivered to the Secretary shall be based on a tails assay of 0.30 
U\235\. Uranium hexafluoride transferred to the Secretary pursuant to 
this paragraph shall be deemed under United States law, for all 
purposes to be of Russian origin.
    (2) Within 7 years of the date of enactment of this Act, the 
Secretary shall sell, and receive payment for, the uranium hexafluoride 
transferred to the Secretary pursuant to paragraph (1). Such uranium 
hexafluoride shall be sold--
            (A) at any time for use in the United States for the 
        purpose of overfeeding;
            (B) at any time for end use outside the United States; or,
            (C) in calendar year 2001 for consumption by end users in 
        the United States not prior to January 1, 2002, in volumes not 
        to exceed 3,000,000 pounds U<INF>3O<INF>8 equivalent per year.
    (3) With respect to all enriched uranium delivered to the United 
States Executive Agent under the Russian HEU Agreement on or after 
January 1, 1997, the United States Executive Agent shall, upon request 
of the Russian Executive Agent, enter into an agreement to deliver 
concurrently to the Russian Executive Agent an amount of uranium 
hexafluoride equivalent to the natural uranium component of such 
uranium. An agreement executed pursuant to a request of the Russian 
Executive Agent, as contemplated in this paragraph, may pertain to any 
deliveries due during any period remaining under the Russian HEU 
Agreement. The quantity of such uranium hexafluoride delivered to the 
Russian Executive Agent shall be based on a tails assay of 0.30 U\235\. 
Title to uranium hexafluoride delivered to the Russian Executive Agent 
pursuant to this paragraph shall transfer to the Russian Executive 
Agent upon delivery of such material to the Russian Executive Agent, 
with such delivery to take place at a North American facility 
designated by the Russian Executive Agent. Uranium hexafluoride 
delivered to the Russian Executive Agent pursuant to this paragraph 
shall be deemed under United States law for all purposes to be of 
Russian origin. Such uranium hexafluoride may be sold to any person or 
entity for delivery and use in the United States only as permitted in 
subsections (b)(5), (b)(6) and (b)(7) of this section.
    (4) In the event that the Russian Executive Agent does not exercise 
its right to enter into an agreement to take delivery of the natural 
uranium component of any low-enriched uranium, as contemplated in 
paragraph (3), within 90 days of the date such low-enriched uranium is 
delivered to the United States Executive Agent, then the United States 
Executive Agent shall engage an independent entity through a 
competitive selection process to auction an amount of uranium 
hexafluoride or U<INF>3O<INF>8 (in the event that the conversion 
component of such hexafluoride has previously been sold) equivalent to 
the natural uranium component of such low-enriched uranium. Such 
independent entity shall sell such uranium hexafluoride in one or more 
lots to any person or entity to maximize the proceeds from such sales, 
for disposition consistent with the limitations set forth in this 
subsection. The independent entity shall pay to the Russian Executive 
Agent the proceeds of any such auction less all reasonable transaction 
and other administrative costs. The quantity of such uranium 
hexafluoride auctioned shall be based on a tails assay of 0.30 U\235\. 
Title to uranium hexafluoride auctioned pursuant to this paragraph 
shall transfer to the buyer of such material upon delivery of such 
material to the buyer. Uranium hexafluoride auctioned pursuant to this 
paragraph shall be deemed under United States law for all purposes to 
be of Russian origin.
    (5) Except as provided in paragraphs (6) and (7), uranium 
hexafluoride delivered to the Russian Executive Agent under paragraph 
(3) or auctioned pursuant to paragraph (4), may not be delivered for 
consumption by end users in the United States either directly or 
indirectly prior to January 1, 1998 and thereafter only in accordance 
with the following schedule:

  
                                 Annual Maximum Deliveries to End Users
Year
                              (millions lbs. U<INF>3O<INF>8 equivalent)
        1998.........................................     2            
        1999.........................................     4            
        2000.........................................     6            
        2001.........................................     8            
        2002.........................................    10            
        2003.........................................    12            
        2004.........................................    14            
        2005.........................................    16            
        2006.........................................    17            
        2007.........................................    18            
        2008.........................................    19            
        2009 and each year thereafter................    20            
    (6) Uranium hexafluoride delivered to the Russian Executive Agent 
under paragraph (3) or auctioned pursuant to paragraph (4) may be sold 
at any time as Russian-origin natural uranium in a matched sale 
pursuant to the Suspension Agreement, and in such case shall not be 
counted against the annual maximum deliveries set forth in paragraph 
(5).
    (7) Uranium hexafluoride delivered to the Russian Executive Agent 
under paragraph (3) or auctioned pursuant to paragraph (4) may be sold 
at any time for use in the United States for the purpose of overfeeding 
in the operations of enrichment facilities.
    (8) Nothing in this subsection (b) shall restrict the sale of the 
conversion component of such uranium hexafluoride. Material sold 
pursuant to paragraph (5) shall not be swapped, exchanged or loaned.
    (9) The Secretary of Commerce shall have responsibility for the 
administration and enforcement of the limitations set forth in this 
subsection. The Secretary of Commerce may require any person to provide 
any certifications, information, or take any action that may be 
necessary to enforce these limitations. The United States Customs 
Service shall maintain and provide any information required by the 
Secretary of Commerce and shall take any action requested by the 
Secretary of Commerce which is necessary for the administration and 
enforcement of the uranium delivery limitations set forth in this 
section.
    (10) The President shall monitor the actions of the United States 
Executive Agent under the Russian HEU Agreement and shall report to the 
Congress not later than December 31 of each year on the effect the low-
enriched uranium delivered under the Russian HEU Agreement is having on 
the domestic uranium mining, conversion, and enrichment industries, and 
the operation of the gaseous diffusion plants. Such report shall 
include a description of actions taken or proposed to be taken by the 
President to prevent or mitigate any material adverse impact on such 
industries or any loss of employment at the gaseous diffusion plants as 
a result of the Russian HEU Agreement.
    (c) Transfers to the Corporation.--
            (1) The Secretary shall transfer to the Corporation without 
        charge up to 50 metric tons of enriched uranium and up to 7,000 
        metric tons of natural uranium from the Department of Energy's 
        stockpile, subject to the restrictions in subsection (c)(2).
            (2) The Corporation shall not deliver for commercial end 
        use in the United States--
                    (A) any of the uranium transferred under this 
                subsection before January 1, 1998;
                    (B) more than 10 percent of the uranium (by uranium 
                hexafluoride equivalent content) transferred under this 
                subsection or more than 4,000,000 pounds, whichever is 
                less, in any calendar year after 1997; or
                    (C) more than 800,000 separative work units 
                contained in low-enriched uranium transferred under 
                this subsection in any calendar year.
    (d) Inventory Sales.--(1) In addition to the transfers authorized 
under subsections (c) and (e), the Secretary may, from time to time, 
sell natural and low-enriched uranium (including low-enriched uranium 
derived from highly enriched uranium) from the Department of Energy's 
stockpile.
    (2) Except as provided in subsections (b), (c), and (e), no sale or 
transfer of natural or low-enriched uranium shall be made unless--
            (A) the President determines that the material is not 
        necessary to national security needs,
            (B) the Secretary determines that the sale of the material 
        will not have material adverse impact on the domestic uranium 
        mining, conversion, or enrichment industry, taking into account 
        the sales of uranium under the Russian HEU Agreement and the 
        Suspension Agreement, and
            (C) the price paid to the Secretary will not be less than 
        the fair market value of the material.
    (e) Government Transfers.--Notwithstanding subsection (d)(2), the 
Secretary may transfer or sell enriched uranium--
            (1) to a federal agency if the material is transferred for 
        the use of the receiving agency without any resale or transfer 
        to another entity and the material does not meet commercial 
        specifications;
            (2) to any person for national security purposes, as 
        determined by the Secretary; or
            (3) to any state or local agency or nonprofit, charitable, 
        or educational institution for use other than the generation of 
        electricity for commercial use.
    (f) Savings Provision.--Nothing in this Act shall be read to modify 
the terms of the Russian HEU Agreement.

SEC. 13. LOW-LEVEL WASTE.

    (a) Responsibility of DOE.--(1) The Secretary, at the request of 
the generator, shall accept for disposal low-level radioactive waste, 
including depleted uranium if it were ultimately determined to be low-
level radioactive waste, generated by--
            (A) the Corporation as a result of the operations of the 
        gaseous diffusion plants or as a result of the treatment of 
        such wastes at a location other than the gaseous diffusion 
        plants, or
            (B) any person licensed by the Nuclear Regulatory 
        Commission to operate a uranium enrichment facility under 
        sections 53, 63, and 193 of the Atomic Energy Act of 1954 (42 
        U.S.C. 2073, 2093, and 2243).
    (2) Except as provided in paragraph (3), the generator shall 
reimburse the Secretary for the disposal of low-level radioactive waste 
pursuant to paragraph (1) in an amount equal to the Secretary's costs, 
including a pro rata share of any capital costs, but in no event more 
than an amount equal to that which would be charged by commercial, 
State, regional, or interstate compact entities for disposal of such 
waste.
    (3) In the event depleted uranium were ultimately determined to be 
low-level radioactive waste, the generator shall reimburse the 
Secretary for the disposal of depleted uranium pursuant to paragraph 
(1) in an amount equal to the Secretary's costs, including a pro rata 
share of any capital costs.
    (b) Agreements With Other Persons.--The generator may also enter 
into agreements for the disposal of low-level radioactive waste subject 
to subsection (a) with any person other than the Secretary that is 
authorized by applicable laws and regulations to dispose of such 
wastes.
    (c) State or Interstate Compacts.--Notwithstanding any other 
provision of law, no State or interstate compact shall be liable for 
the treatment, storage, or disposal of any low-level radioactive waste 
(including mixed waste) attributable to the operation, decontamination, 
and decommissioning of any uranium enrichment facility.

SEC. 14. AVLIS.

    (a) Exclusive Right To Commercialize.--The Corporation shall have 
the exclusive commercial right to deploy and use any AVLIS 
patents, processes, and technical information owned or controlled by 
the Government, upon completion of a royalty agreement with the 
Secretary.
    (b) Transfer of Related Property to Corporation.--
            (1) In General.--To the extent requested by the Corporation 
        and subject to the requirements of the Atomic Energy Act of 
        1954 (42 U.S.C. 2011 et seq.), the President shall transfer 
        without charge to the Corporation all of the right, title, or 
        interest in and to property owned by the United States under 
        control or custody of the Secretary that is directly related to 
        and materially useful in the performance of the Corporation's 
        purposes regarding AVLIS and alternative technologies for 
        uranium enrichment, including--
                    (A) facilities, equipment, and materials for 
                research, development, and demonstration activities; 
                and
                    (B) all other facilities, equipment, materials, 
                processes, patents, technical information of any kind, 
                contracts, agreements, and leases.
            (2) Exception.--Facilities, real estate, improvements, and 
        equipment related to the gaseous diffusion, and gas centrifuge, 
        uranium enrichment programs of the Secretary shall not transfer 
        under paragraph (1)(B).
            (3) Expiration of Transfer Authority.--The President's 
        authority to transfer property under this subsection shall 
        expire upon the privatization date.
    (c) Liability for Patent and Related Claims.--With respect to any 
right, title, or interest provided to the Corporation under subsection 
(a) or (b), the Corporation shall have sole liability for any payments 
made or awards under section 157b.(3) of the Atomic Energy Act of 1954 
(42 U.S.C. 2187(b)(3)), or any settlements or judgments involving 
claims for alleged patent infringement. Any royalty agreement under 
subsection (a) of this section shall provide for a reduction of royalty 
payments to the Secretary to offset any payments, awards, settlements, 
or judgments under this subsection.

SEC. 15. GASEOUS DIFFUSION TECHNOLOGY.

    (a) Transfer of Rights.--The Corporation shall have the exclusive 
commercial rights for both uranium enrichment and non-uranium 
enrichment uses of any patents, patent applications, trade secrets, and 
other technical information related to the gaseous diffusion technology 
owned or controlled by the Department of Energy, or by the United 
States but under control or custody of the Department of Energy. The 
Corporation shall enter into an exclusive licensing agreement with the 
Department of Energy providing for--
            (1) the payment of royalties of 3% of the gross, pre-tax 
        revenues realized by the Corporation from its non-uranium 
        enrichment commercial uses of such patents, patent 
        applications, trade secrets, and other technical information,
            (2) the reduction of such royalties to offset any payments, 
        awards, settlements, or judgments rendered against the 
        Corporation in its deployment or licensing of the exclusive 
        commercial rights under this section, and
            (3) the reservation of a non-exclusive, royalty-free right 
        to the United States Government to use such patents, patent 
        applications, trade secrets, and other technical information 
        solely for Governmental purposes.
    (b) Improvements.--New patents, trade secrets, and other technical 
information developed for commercial applications that derive from the 
gaseous diffusion technology initially licensed by the Corporation 
shall be at the Corporation's expense and shall be free from royalties 
to the Department of Energy.

SEC. 16. APPLICATION OF CERTAIN LAWS.

    (a) OSHA.--(1) As of the privatization date, the private 
corporation shall be subject to and comply with the Occupational Safety 
and Health Act of 1970 (29 U.S.C. 651 et seq.).
    (2) The Nuclear Regulatory Commission and the Occupational Safety 
and Health Administration shall, within 90 days after the date of 
enactment of this Act, enter into a memorandum of agreement to govern 
the exercise of their authority over occupational safety and health 
hazards at the gaseous diffusion plants, including inspection, 
investigation, enforcement, and rulemaking relating to such hazards.
    (b) Antitrust Laws.--For purposes of the antitrust laws, the 
performance by the private corporation of a ``matched import'' contract 
under the Suspension Agreement shall be considered to have occurred 
prior to the privatization date, if at the time of privatization, such 
contract had been agreed to by the parties in all material terms and 
confirmed by the Secretary of Commerce under the Suspension Agreement.
    (c) Energy Reorganization Act Requirements.--(1) The private 
corporation and its contractor shall be subject to the provisions of 
section 211 of the Energy Reorganization Act of 1974 (42 U.S.C. 5851) 
to the same extent as an employer subject to such section.
    (2) With respect to the operation of the facilities leased by the 
private corporation, section 206 of the Energy Reorganization Act of 
1974 (42 U.S.C. 5846) shall apply to the directors and officers of the 
private corporation.

SEC. 17. AMENDMENTS TO THE ATOMIC ENERGY ACT.

    (A) Repeal.--(1) Chapters 22 through 26 of the Atomic Energy Act of 
1954 (42 U.S.C. 2297-2297e-7) are repealed as of the privatization 
date.
    (2) The table of contents of such Act is amended as of the 
privatization date by striking the items referring to sections repealed 
by paragraph (1).
    (b) NRC Licensing.--
            (1) Section 11v. of the Atomic Energy Act of 1954 (42 
        U.S.C. 2014v.) is amended by striking ``or the construction and 
        operation of a uranium enrichment facility using Atomic Vapor 
        Laser Isotope Separation technology''.
            (2) Section 193 of the Atomic Energy Act of 1954 (42 U.S.C. 
        2243) is amended by adding at the end the following:
    ``(f) Limitation.--No license or certificate of compliance may be 
issued to the United States Enrichment Corporation or its successor 
under this section or sections 53, 63, or 1701, if in the opinion of 
the Commission, the issuance of such a license or certificate of 
compliance--
            ``(1) would be inimical to the common defense and security 
        of the United States; or
            ``(2) would be inimical to the maintenance of a reliable 
        and economical domestic source of enrichment services because 
        of the nature and extent of the ownership, control, or 
        domination of the Corporation by a foreign corporation or a 
        foreign government or any other relevant factors or 
        circumstances.''.
            (3) Section 1701(c)(2) of the Atomic Energy Act of 1954 (42 
        U.S.C. 2297f(c)(2)) is amended to read as follows:
            ``(2) 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 Commission, but not less 
        than every 5 years. The Commission shall review any such 
        application and any determination made under subsection (b)(2) 
        shall be based on the results of any such review.''
            (4) Section 1702(a) of the Atomic Energy Act of 1954 (42 
        U.S.C. 2297f-1(a)) is amended--
                    (1) by striking ``other than'' and inserting 
                ``including'', and
                    (2) by striking ``sections 53 and 63'' and 
                inserting ``sections 53, 63, and 193''.
    (c) Judicial Review of NRC Actions.--Section 189b. of the Atomic 
Energy Act of 1954 (42 U.S.C. 2239(b)) is amended to read as follows:
    ``(b) The following Commission actions shall be subject to judicial 
review in the manner prescribed in chapter 158 of title 28, United 
States Code and chapter 7 of title 5, United States Code:
            ``(1) Any final order entered in any proceeding of the kind 
        specified in subsection (a).
            ``(2) Any final order allowing or prohibiting a facility to 
        begin operating under a combined construction and operating 
        license.
            ``(3) Any final order establishing by regulation standards 
        to govern the Department of Energy's gaseous diffusion uranium 
        enrichment plants, including any such facilities leased to a 
        corporation established under the USEC Privatization Act.
            ``(4) Any final determination relating to whether the 
        gaseous diffusion plants, including any such facilities leased 
        to a corporation established under the USEC Privatization Act, 
        are in compliance with the Commission's standards governing the 
        gaseous diffusion plants and all applicable laws.''.
    (d) Civil Penalities.--Section 234a. of the Atomic Energy Act of 
1954 (42 U.S.C. 2282(a)) is amended by--
            (1) striking ``any licensing provision of section 53, 57, 
        62, 63, 81, 82, 101, 103, 104, 107, or 109'' and inserting 
        ``any licensing or certification provision of section 53, 57, 
        62, 63, 81, 82, 101, 103, 104, 107, 109, or 1701''; and
            (2) by striking ``any license issued thereunder'' and 
        inserting ``any license or certification issued thereunder''.
    (e) References to the Corporation.--Following the privitazation 
date, all references in the Atomic Energy Act of 1954 to the United 
States Enrichment Corporation shall be deemed to be references to the 
private corporation.

SEC. 18. AMENDMENTS TO OTHER LAWS.

    (a) Definition of Government Corporation.--As of the privatization 
date, section 9101(3) of title 31, United States Code, is amended by 
striking subparagraph (N) as added by section 902(b) of Public Law 102-
486.
    (b) Definition of the Corporation.--Section 1018(1) of the Energy 
Policy Act of 1992 (42 U.S.C. 2296b-7(1)) is amended by inserting ``or 
its successor'' before the period.
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