[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4883 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4883

  To authorize and direct the maintenance of a reliable and economic 
  uranium enrichment, conversion, and mining industry, to assure the 
nuclear non-proliferation objects of the United States, to provide for 
the deployment of advanced uranium enrichment technology, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 18, 2000

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

_______________________________________________________________________

                                 A BILL


 
  To authorize and direct the maintenance of a reliable and economic 
  uranium enrichment, conversion, and mining industry, to assure the 
nuclear non-proliferation objects of the United States, to provide for 
the deployment of advanced uranium enrichment technology, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``The Nuclear Fuel Reliability Act of 
2000''.

SEC. 2. FINDINGS.

    The Congress finds and declares that--
            (1) in authorizing the privatization of USEC, Congress 
        recognized that the activities conducted by USEC included many 
        public purposes and therefore directed that privatization only 
        proceed on condition that privatization--
                    (A) 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, enrichment and conversion services, and, to the 
                extent not inconsistent with such purposes, secures the 
                maximum proceeds to the United States;
                    (B) not result in the Corporation being owned, 
                controlled, or dominated by an alien, a foreign 
                corporation, or a foreign government;
                    (C) not be inimical to the health and safety of the 
                public or the common defense and security; and
                    (D) provide reasonable assurance that adequate 
                enrichment capacity will remain available to meet the 
                needs of the domestic electric utility industry.
            (2) In the period since privatization, it has become 
        evident that USEC, Inc. cannot assure the protection and 
        fulfillment of the public purposes that were conditions and 
        predicates to privatization. USEC, Inc. has--
                    (A) announced that it will no longer provide for 
                the continuation of both of the Department of Energy's 
                gaseous diffusion plants and will not deploy the low-
                cost AVLIS enrichment technology that was a primary 
                predicate for assuring its long term viability;
                    (B) engaged in activities, including the 
                liquidation of government provided inventories of 
                natural uranium and conversion services, that impair 
                the continued viability of the domestic uranium 
                conversion and mining industry;
                    (C) experienced increasing financial difficulties, 
                including downgrade of its credit rating to below 
                investment grade, and has indicated that, in absence of 
                additional Federal support, it cannot deploy low cost 
                enrichment technology that will permit it to be 
                competitive in global markets;
                    (D) has undertaken management decisions, such as 
                the payment of dividends in excess of earnings and the 
                repurchase of its publicly traded stock, that has 
                consumed large amounts of its cash flow which has 
                jeopardized the public interest in maintaining a 
                reliable and economical domestic source enrichment 
                service; and
                    (E) has sought up to $200,000,000 in public 
                assistance as a condition for continuing to serve as 
                the Executive Agent under the Russian HEU Agreement, 
                and failed to demonstrate that it will meet the core 
                public interest obligations which it accepted as a 
                condition to privatization.
            (3) The fulfillment of the public interest purposes set out 
        in the USEC Privatization Act and the Energy and Policy Act of 
        1992 requires that--
                    (A) the United States, through a government owned 
                corporation, should reassume direct responsibility for 
                the energy security and national security purposes 
                heretofore entrusted to USEC, Inc.;
                    (B) the United States shall determine the best 
                means to recapture the public interest purposes and 
                assets entrusted to USEC, Inc.;
                    (C) the United States Enrichment Enterprise, a 
                government corporation, be established to assume the 
                energy security, national security, and public interest 
                purposes, together with such assets and liabilities 
                heretofore transferred to USEC, Inc., as are required 
                to fulfill such purposes and such other public purposes 
                as are herein designated.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Corporation.--The term ``corporation'' means the USEE.
            (2) Executive agent agreement.--The term ``Executive Agent 
        Agreement'' refers to the Agreement to administer the Russian 
        HEU Agreement on behalf of the United States.
            (3) Gaseous diffusion plants.--The term ``gaseous diffusion 
        plants'' means the Paducah Gaseous Diffusion Plant at Paducah, 
        Kentucky and the Portsmouth Gaseous Diffusion Plant at Piketon, 
        Ohio.
            (4) Privatization.--The term ``privatization'' means the 
        1998 privatization of USEC pursuant to the USEC Privatization 
        Act.
            (5) Refederalization.--The term ``refederalization'' means 
        the process of taking back the public interest purposes as well 
        as those related to energy and national security and the 
        process of the United States acquiring the ownership and assets 
        of the enrichment enterprise transferred to USEC, Inc. under 
        the USEC Privatization Act
            (6) Russian heu agreement.--The term ``Russian HEU 
        Agreement'' means the Agreement between 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.
            (7) SWU.--The term ``SWU'' means separative work unit which 
        is the level of effort required to increase the concentration 
        of U-235 in natural uranium.
            (8) Transfer date.--Date in which the sale of USEC, Inc.'s 
        assets are transferred to USEE.
            (9) Transition manager.--The term ``transition manager'' 
        means the chief executive responsible for the day-to-day 
        operations of USEE before acquisition of USEC, Inc.
            (10) Uranium enrichment.--The term ``uranium enrichment'' 
        means the separation of uranium of a given isotopic content 
        into 2 components, 1 having a higher percentage of fissile 
        isotope and 1 having a lower percentage.
            (11) USEC.--The term ``USEC'' means the United States 
        Enrichment Corporation, a government corporation established by 
        the Energy Policy Act of 1992, the reestablishment of which is 
        provided for by this Act.
            (12) USEC, Inc.--The term ``USEC Inc.'' means the private 
        corporation established pursuant to the USEC Privatization Act, 
        Public Law 104-134.
            (13) USEE.--The term ``USEE'' means the United States 
        Enrichment Enterprise, the newly created government-owned 
        corporation which will refederalize USEC, Inc. and carry out 
        the purposes of this Act.

SEC. 4. PLAN TO RECAPTURE PUBLIC PURPOSES AND ASSETS.

    (a) Plan.--Within 90 days of the date of enactment of this Act, the 
Transition Manager and the Secretary of Energy, in consultation with 
the Secretary of State and Secretary of the Treasury, shall prepare and 
present to the President a plan for the reacquisition of 100 percent of 
the stock or the net assets and liabilities of USEC, Inc. The Secretary 
of Energy is authorized to secure the services of an independent 
financial advisor, a transaction manager, auditors, appraisers for 
valuation, and outside legal counsel to assist in the development of 
the plan, the performance of due diligence, and recommended pathways 
for a transaction. The plan shall--
            (1) identify and provide means to assure the continued 
        fulfillment of the public interest purposes stated by Congress 
        in the USEC Privatization Act and Energy and Policy Act of 1992 
        in providing for the privatization of USEC;
            (2) recommend means to ensure that stockholders and 
        creditors of USEC, Inc. will be entitled to just compensation, 
        not to exceed a 20 percent premium to the market value of USEC, 
        Inc.'s stock, if it is traded on a listed exchange as of the 
        date of enactment of this Act;
            (3) consider and analyze alternatives including the use of 
        tender offer and a negotiated transaction with the Members of 
        the Board of USEC, Inc., or retaining the services of a third 
        party, as a means of effectuating the transaction;
            (4) evaluate the option of exchanging Treasury obligations 
        for USEC, Inc. corporate debt obligations, as a means of 
        providing just compensation for creditors;
            (5) propose legislation required for the refederalization 
        of USEC, Inc. for submission to the Congress, GAO and the 
        President;
            (6) prepare a fair market valuation for acquisition, except 
        that the amount of any bonuses, compensation, or severance in 
        excess of one year's annual base salary for officers and 
        directors of USEC, Inc. shall be deducted to arrive at a net 
        asset value or fair market value and shall not be included as a 
        liability to be assumed by USEE or the United States and any 
        such excess liabilities shall be deducted from compensation due 
        shareholders of USEC, Inc.
Within 30 days of the date of enactment of this Act, the President 
shall accept or modify the plan provided or direct its revision for 
resubmission to the Office of the President within 30 days. Congress 
shall be notified immediately upon approving the plan.
    (b) Period for Congressional Review.--After receiving the report 
under subsection (b), the Congress shall have 30 days for review of the 
report and oversight of the subject matter of the report.
    (c) Implementation.--Upon the implementation of the plan, the 
United States is authorized to take USEC, Inc. and the Board of 
Directors of USEC, Inc. shall transfer ownership of the stock and 
assets and obligations of USEC, Inc., to USEE, the United States 
government corporation established under section 6. The Executive 
Agency for the Russian HEU Agreement shall be transferred to USEE at 
the time of transfer of ownership of USEC, Inc., if it had not been 
placed within USEE earlier under section 5.
    (d) Authorization of Expenditures.--For the purposes of this 
section to transfer ownership of USEC, Inc. and to execute USEE's 
responsibilities under section 6, such sums as are necessary are 
authorized for deposit in the United States Enrichment Enterprise Fund.

SEC. 5. RESUMPTION OF UNITED STATES CONTROL OVER NATIONAL SECURITY 
              PURPOSES.

    (a) HEU Agreement.--After USEE has been established, the Secretary 
of Energy, in consultation with the Secretary of State and the National 
Security Council, is authorized to terminate the Executive Agent 
Agreement between the United States and USEC, Inc.
    (b) Transfer.--If USEC, Inc. is terminated as Executive Agent, the 
responsibilities for performance as the Executive Agent for the Russian 
HEU Agreement shall be transferred to USEE, a government-corporation 
established pursuant to section 6.
    (c) Contracts.--
            (1) USEE shall be authorized to purchase, store, or sell 
        enriched uranium acquired pursuant to the Russian HEU 
        Agreement, and to fulfill contractual obligations under that 
        Agreement between USEC, Inc. and Tenex, and shall be authorized 
        to negotiate new contracts with Tenex for the purchase of down 
        blended HEU under that Agreement if such contract is in the 
        public interest.
            (2) Suspension agreement.--Nothing herein shall authorize 
        USEE to enter into any arrangement for the implementation of 
        the Russian HEU Agreement that would require the importation of 
        non-HEU derived enrichment services, conversion services, or 
        uranium or otherwise render necessary an amendment to the 
        Agreement Suspending the Anti Dumping Investigation on Uranium 
        from the Russian Federation or any other country.
            (3) Matched sales.--USEE will provide USEC, Inc. with the 
        right to match any offer received for the SWU until the date of 
        the transfer of ownership of USEC, Inc. or 18 months, whichever 
        is later.
    (d) Authorization of Expenditures.--For the purposes of USEE 
implementing the Russian HEU Agreement and carrying out purposes in 
this section, such sums as necessary are authorized for deposit in the 
United States Enrichment Enterprise Fund.

SEC. 6. ESTABLISHMENT, PURPOSES, POWERS, AND ORGANIZATION OF 
              CORPORATION.

    (a) In General.--Within 60 days of the date of enactment of this 
Act, there is established a body corporate to be known as the United 
States Enrichment Enterprise.
    (b) Government Corporation.--The Corporation shall be established 
as a wholly owned Government corporation subject to chapter 91 of title 
31, United States Code (commonly referred to as the Government 
Corporation Control Act), except as otherwise provided in this title.
    (c) Federal Agency.--The Corporation shall be an agency and 
instrumentality of the United States.
    (d) Corporate Offices.--The Corporation shall maintain an office 
for the service of process and papers in the District of Columbia, and 
shall be deemed, for purposes of venue in civil actions, to be a 
resident thereof. The Corporation may establish offices in such other 
place or places as it may deem necessary or appropriate in the conduct 
of its business.
    (e) Purposes of the Corporation.--
            (1) To operate as a business enterprise on an efficient 
        basis, and to conduct the business as a self-financing 
        corporation after the deployment of advanced enrichment 
        technology.
            (2) To provide for the protection of the public interest in 
        maintaining a reliable and economical domestic source of 
        uranium mining, enrichment and conversion services.
            (3) To lease Department of Energy uranium enrichment 
        facilities, as needed, and to maintain the continued operations 
        of the gaseous diffusion plants until advanced technology is 
        successfully deployed, and to lease DOE facilities at 
        Portsmouth, Ohio or Paducah, Kentucky for purposes of deploying 
        advanced enrichment technology.
            (4) To sell uranium and conversion services from its 
        inventories in a manner that will have no material adverse 
        impact on the domestic conversion or mining industries, 
        consistent with the restrictions contained in the USEC 
        Privatization Act. USEE may also acquire uranium for uranium 
        enrichment, low-enriched uranium for resale, and highly 
        enriched uranium for conversion into low-enriched uranium, as 
        needed.
            (5) To market and sell its enriched uranium and uranium 
        enrichment and related services to--
                    (A) the Department of Energy for maintaining a 
                strategic reserve of low enriched uranium suitable for 
                use by commercial nuclear reactors;
                    (B) for government purposes; and
                    (C) domestic and foreign persons.
            (6) To conduct research and development as required to meet 
        business objectives for the purposes of identifying, 
        evaluating, improving, testing and deploying alternative 
        technologies for uranium enrichment.
            (7) To comply with laws to protect the public health, 
        safety, and the environment.
            (8) To continue at all times to meet the objectives of 
        ensuring the Nation's common defense and security, including 
        abiding by United States laws and policies concerning special 
        nuclear materials and nonproliferation of atomic weapons and 
        other nonpeaceful uses of atomic energy.
            (9) To take all other lawful actions in furtherance of 
        these purposes.
    (f) Powers of the Corporation.--In order to accomplish its 
purposes, the Corporation--
            (1) shall, except as provided in this Act or other 
        applicable Federal law, have all the powers of a private 
        corporation incorporated under the District of Columbia 
        Business Corporation Act;
            (2) shall have the priority of the United States with 
        respect to the payment of debts out of bankrupt, insolvent, and 
        decedents' estates;
            (3) may obtain from the Administrator of General Services 
        the services the Administrator is authorized to provide 
        agencies of the United States, on the same basis as those 
        services are provided to other agencies of the United States;
            (4) shall enrich uranium or acquire enriched uranium (low-
        enriched uranium derived from highly enriched uranium from the 
        United States or Russia);
            (5) may conduct, or provide for conducting, those research, 
        development, and deployment activities related to uranium 
        enrichment and related processes and activities which the 
        Corporation considers necessary or advisable to maintain the 
        Corporation as a commercial enterprise operating on an 
        efficient basis; and
            (6) may enter into transactions regarding uranium, enriched 
        uranium, or depleted uranium with--
                    (A) persons licensed under section 53, 63, 103, or 
                104 of Atomic Energy Act of 1954 in accordance with the 
                licenses held by those persons, for as long as the 
                Corporation considers necessary or desirable;
                    (B) persons in accordance with, and within the 
                period of, an agreement for cooperation arranged under 
                section 123 of the Atomic Energy Act of 1954; or
                    (C) persons otherwise authorized by law to enter 
                into such transactions;
            (7) shall sell to the Department of Energy as provided in 
        this Act the amounts of uranium enrichment and related services 
        that the Department determines from time to time are required 
        for it to--
                    (A) carry out Presidential directions and 
                authorizations; and
                    (B) conduct other Department programs.

SEC. 7. BOARD OF DIRECTORS.

    (a) In General.--The powers of the Corporation are vested in the 
Board of Directors.
    (b) Appointment.--The Board of Directors shall consist of 7 
individuals, to be appointed by the President by and with the advice 
and consent of the Senate. The President shall designate a Chairman of 
the Board from among members of the Board.
    (c) Qualifications.--Members of the Board shall be citizens of the 
United States. No member of the Board shall be an employee of the 
Corporation or have any direct financial relationship with the 
Corporation other than that of being a member of the Board.
    (d) Terms.--
            (1) In general.--Except as provided in paragraph (2), 
        members of the Board shall serve 5 year terms or until the 
        election of a new Board of Directors, whichever comes first.
            (2) Initial members.--Of the members first appointed to the 
        Board--
                    (A) 2 shall be appointed for a 1-year term;
                    (B) 2 shall be appointed for a 2-year term;
                    (C) 1 shall be appointed for a 3-year term;
                    (D) 1 shall be appointed for a 4-year term; and
                    (E) 1 shall be appointed for a 5-year term.
The Board shall be composed of at least one person with extensive 
background in nuclear non proliferation policy or relations with 
Russia; one person with in-depth knowledge of the uranium enrichment 
industry; one person who resides in the state of Kentucky; one person 
who resides in the state of Ohio; and one representative or designee of 
a union representing workers at USEE's facilities. At least 2 Board 
representatives should have expertise in technology development, 
chemistry, physics, or engineering.
            (3) Reappointment.--Members of the Board may be reappointed 
        by the President, by and with the advice and consent of the 
        Senate.
    (e) Vacancies.--Upon the occurrence of a vacancy on the Board, the 
President by and with the advice and consent of the Senate shall 
appoint an individual to fill such vacancy for the remainder of the 
applicable term.
    (f) Meetings and Quorum.--The Board shall meet at any time pursuant 
to the call of the Chairman and as provided by the bylaws of the 
Corporation, but not less than quarterly. Five voting members of the 
Board shall constitute a quorum. A majority of the Board shall adopt 
and from time to time may amend bylaws for the operation of the Board.
    (g) Powers.--The Board shall be responsible for general management 
of the Corporation and shall have the same authority, privileges, and 
responsibilities as the board of directors of a private corporation 
incorporated under the District of Columbia Business Corporation Act.
    (h) Compensation.--Members of the Board shall serve on a part-time 
basis and shall receive per diem, when engaged in the actual 
performance of Corporation duties, plus reimbursement for travel, 
subsistence, and other necessary expenses incurred in the performance 
of their duties.
    (i) Membership of Secretary of Energy, Treasury and State.--The 
President may appoint the Secretary of the Treasury, the Secretary of 
State, and the Secretary of Energy, or the designee of such a 
Secretary, to serve as a nonvoting, ex-officio member of the Board.
    (j) Conflict of Interest Requirements.--No director, officer, or 
other management level employee of the Corporation may have a financial 
interest in any customer, contractor, or competitor of the Corporation 
or in any business that may be adversely affected by the success of the 
Corporation.

SEC. 8. EMPLOYEES.

    (a) Appointment.--The Board shall appoint such officers and 
employees as are necessary for the transaction of its business. Within 
30 days of the date of enactment of this Act, the President shall 
appoint a Transition Manager, consistent with section 16, until the 
Board of Directors can select officers and senior management.
    (b) Compensation, Duties, and Removal.--The Board shall, consistent 
with section 5301 of title 5, United States Code, fix the compensation 
of all officers and employees of the Corporation, define their duties, 
and provide a system of organization to fix responsibility and promote 
efficiency. Any officer or employee of the Corporation may be removed 
in the discretion of the Board, except where a process for arbitrating 
dismissals is provided in a collective bargaining agreement.
    (c) Applicable Criteria.--Officers and senior management employees 
shall be appointed, promoted, and assigned on the basis of merit and 
fitness, and other personnel actions shall be consistent with the 
principles of fairness and due process consistent with the principles 
of section 2301(b) of title 5, United States Code, relating to merit 
system principles.
    (d) Treatment of Persons Employed Prior to Refederalization.--Upon 
transfer of ownership of USEC, Inc., USEE or a contractor to USEE shall 
offer non-management employees of USEC, Inc. employment to the extent 
that their jobs still exist, or they have rights to other employment 
under the terms of a collective bargaining agreement.
    (e) Compensation, etc.--Excluding officers and senior management, 
the compensation, benefits, and other terms and conditions of 
employment in effect immediately prior to the refederalization date 
shall remain in effect for 120 days after the date of refederalization, 
after which the Board of Directors shall establish personnel policies.
    (f) Employee Protections for Current and Former Employees at the 
Gaseous Diffusion Plants.--
            (1) In general.--It is the purpose of this subsection to 
        ensure that the establishment and operations of the Corporation 
        pursuant to this section shall not result in any adverse 
        effects on the employment rights, wages, or benefits of 
        employees at the gaseous diffusion plants, that are operated, 
        directly or under contract, in the performance of the functions 
        vested in the Corporation.
            (2) Applicability of existing collective bargaining 
        agreements.--Any employer (including the Corporation, or a 
        contractor) engaged in the management, operations and security 
        at a facility described in paragraph (1) shall abide by the 
        terms of a collective bargaining agreement in effect on the 
        date of transfer of ownership of USEC, Inc., at each individual 
        facility until the date on which a new bargaining agreement is 
        signed. If no agreement is in effect, the terms and conditions 
        of the expired agreement shall remain in effect until the 
        parties conclude a new collective bargaining agreement.
            (3) Applicability of labor laws.--Notwithstanding any other 
        provision of law, the employees of USEE or a contractor to USEE 
        shall be considered employees subject to the National Labor 
        Relations Act (29 U.S.C. 151 et seq.), and USEE shall be 
        considered an employer subject to the National Labor Relations 
        Act, the Employee Retirement Income Security Act of 1974, the 
        Fair Labor Standards Act of 1938, and the Americans with 
        Disabilities Act of 1990.
            (4) Transfer of benefits.--Refederalization shall not 
        diminish the accrued, vested pension benefits of employees of 
        USEC, Inc. who participate in defined benefit plans. USEC, 
        Inc.'s pension plans and retiree health care benefit plans and 
        all of the assets held therein by these plans, including any 
        accrued surplus, shall be transferred to USEE or a contractor 
        to USEE immediately upon the transfer of ownership of USEC, 
        Inc. USEE or a contractor to USEE shall assume all liabilities 
        for payment of pensions and retiree health care benefits for 
        eligible employees who separated from employment with USEC, 
        Inc. prior to the transfer of ownership of USEC, Inc. Employees 
        who transfer from USEC, Inc. to USEE shall retain accrued 
        service credits for purposes of vacation, seniority, 401(k) 
        benefit plans, retiree health care benefits, and pensions. 
        USEC, Inc. shall transfer the assets of all employee benefits 
        plans to USEE or a contractor to USEE immediately upon the 
        transfer of ownership of USEC, Inc. including 401(k) savings 
        plans.
            (5) Gas centrifuge enrichment plants.--USEE or contractors 
        retained by USEE shall, when hiring employees to manufacture or 
        operate and maintain gas centrifuge or other advanced 
        enrichment technology at the Department of Energy's Portsmouth, 
        Ohio or Paducah, Kentucky facility, provide a right of first 
        refusal to qualified or qualifiable individuals who are 
        displaced or facing displacement from employment at the gaseous 
        diffusion plants. Costs for training and retraining shall be 
        provided through the Department of Energy Office of Worker and 
        Community Transition. USEE or its contractor performing 
        operations, maintenance, or security at a gas centrifuge 
        facility shall, to the extent permissible, provide 
        substantially equivalent wages and benefits to operations, 
        maintenance, and security employees, assure pension and retiree 
        health care benefit continuity, and recognize the incumbent 
        bargaining representative for operations, maintenance, or 
        security work to the extent permissible by law.
            (6) Private right of action.--Any suit alleging a violation 
        of any provision of subsections (d) and (e), 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. Any 
        suit 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).

SEC. 9. URANIUM TRANSFERS AND SALES.

    (a) Conversion Component.--Section 3112(b)(8) of the USEC 
Privatization Act (42 U.S.C. 2297h-10(b)(8)) is amended to read as 
follows:
    ``(8) The conversion component of the uranium hexafluoride 
delivered to the Russian Executive Agent under paragraph (3) or 
auctioned pursuant to paragraph (4) shall be subject to the 
restrictions of paragraph (5) as applied to equivalent amounts of 
uranium hexafluoride.''.
    (b) Sales Prices.--Section 3112(c) of the USEC Privatization Act 
(42 U.S.C. 2297h-10(c)) is amended by adding at the end the following:
    ``(3) Any or all U308 or conversion services contained in uranium 
hexafluoride transferred under paragraph (1) shall be sold at prices 
not less than the average domestic fair market value of such products. 
This value is deemed to be equivalent to the average domestic cost of 
production as of the date of enactment of this paragraph. Where a 
combination of such products is to be sold as in uranium hexafluoride 
or enriched uranium product, the prices allocated to each of the 
components in the respective transaction shall be in the same ratio as 
the ratio of United States published spot market prices for U308, 
conversion and separative work units, as applicable, as prevailed at 
the date of enactment of this paragraph.''.
    (c) Domestic Fair Market Value.--Section 3112(d)(2) of the USEC 
Privatization Act (42 U.S.C. 2297h-10(d)(2)) is amended by striking ``, 
and'' at the end of subparagraph (B) and inserting a comma, by striking 
the period at the end of subparagraph (C) and inserting ``, and'', and 
by adding at the end the following:
            ``(D) the price at which the material is sold shall not be 
        less than the domestic fair market value prevailing as of the 
        date of enactment of this subparagraph. This value is deemed to 
        be the average cost of production as of such date. If this 
        material is sold as uranium hexafluoride or enriched uranium 
        product, the component prices shall be allocated in the same 
        ratio as prevailed in published prices as of such date.''.

SEC. 10. AUDITS.

    (a) Independent Audits.--
            (1) In general.--The financial statements of the 
        Corporation shall be prepared in accordance with generally 
        accepted accounting principles and shall be audited annually by 
        an independent certified public accountant in accordance with 
        auditing standards issued by the Comptroller General. Such 
        auditing standards shall be consistent with the private 
        sector's generally accepted auditing standards.
            (2) Review by gao.--The Comptroller General may review any 
        audit of the Corporation's financial statements conducted under 
        paragraph (1). The Comptroller General shall report to the 
        Congress and the Corporation the results of any such review and 
        shall include in such report appropriate recommendations.
    (b) GAO Audits.--
            (1) In general.--The Comptroller General may audit the 
        financial statements of the Corporation for any year in the 
        manner provided in subsection (a)(1).
            (2) Reimbursement by corporation.--The Corporation shall 
        reimburse the Comptroller General for the full cost of any 
        audit conducted under this subsection, as determined by the 
        Comptroller General.
    (c) Availability of Books and Records.--All books, accounts, 
financial records, reports, files, papers, and other property belonging 
to or in use by the Corporation and its auditor that the Comptroller 
General considers necessary to the performance of any audit or review 
under this section shall be made available to the Comptroller General.
    (d) Treatment of GAO Audits.--Activities the Comptroller General 
conducts under this section shall be in lieu of any other audit of the 
financial transactions of the Corporation the Comptroller General is 
required to make under chapter 91 of title 31, United States Code, or 
other law.

SEC. 11. ANNUAL REPORTS.

    (a) In General.--The Corporation shall prepare and submit an annual 
report of its activities to the President and the Congress. This report 
shall contain--
            (1) a general description of the Corporation's operations;
            (2) a summary of the Corporation's operating and financial 
        performance, including an explanation of the decision to pay or 
        not pay dividends;
            (3) copies of audit reports;
            (4) the information required under regulations issued under 
        section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 
        78m); and
            (5) an identification and assessment of any impairment of 
        capital or ability of the Corporation to comply with this Act.
    (b) Deadline.--The report shall be completed not later than 120 
days following the close of each of the Corporation's fiscal years and 
shall accurately reflect the financial position of the Corporation at 
fiscal year end.

SEC. 12. ACCOUNTS.

    (a) Establishment of United States Enrichment Enterprise Fund.--
There is established in the Treasury of the United States a revolving 
fund, to be known as the ``United States Enrichment Enterprise Fund'', 
which shall be available to the Corporation, without need for further 
appropriation and without fiscal year limitation, for carrying out its 
purposes, functions, and powers, and which shall not be subject to 
apportionment under subchapter II of chapter 15 of title 31, United 
States Code. Such fund shall accrue interest on balances by investing 
in short term debt securities of the United States.
    (b) Transfer of Unexpended Balances.--On the transfer date, all 
cash reserves and short term debt instruments on the books of and owned 
by USEC, Inc. shall be deposited in the Fund.

SEC. 13. AUTHORITY TO ISSUE DEBT OBLIGATIONS FOR DEPLOYMENT OF NEW 
              URANIUM ENRICHMENT FACILITIES.

    (a) Issuance.--
            (1) In general.--The Corporation may issue and sell bonds, 
        notes, and other evidences of indebtedness (collectively 
        referred to in this title as `bonds'), for the purpose of 
        constructing new uranium enrichment facilities or conducting 
        directly related preconstruction activities.
            (2) Use of revenues.--The Corporation may pledge and use 
        its revenues for payment of the principal of and interest on 
        its bonds, for their purchase or redemption, and for other 
        purposes incidental to these functions, including creation of 
reserve funds and other funds that may be similarly pledged and used.
            (3) Agreements with holders and trustees.--The Corporation 
        may enter into binding covenants with the holders and trustees 
        of its bonds with respect to--
                    (A) the establishment of reserve and other funds;
                    (B) stipulations concerning the subsequent issuance 
                of bonds; and
                    (C) other matters not inconsistent with this Act; 
                that the Corporation determines necessary or desirable 
                to enhance the marketability of the bonds.
    (b) Terms and Conditions.--
            (1) Negotiable; maturity.--Bonds issued by the Corporation 
        under this section shall be negotiable instruments unless 
        otherwise specified in the bond and shall mature not more than 
        50 years after their date of issuance.
            (2) Role of secretary of the treasury.--
                    (A) Right of disapproval.--The Corporation may set 
                the terms and conditions of bonds issued under this 
                section, subject to disapproval of such terms and 
                conditions by the Secretary of the Treasury within 5 
                days after the Secretary of the Treasury is notified of 
                the following terms and conditions of the bonds:
                            (i) Their forms and denominations.
                            (ii) The times, amounts, and prices at 
                        which they are sold.
                            (iii) Their rates of interest.
                            (iv) The terms at which they may be 
                        redeemed by the Corporation before maturity.
                            (v) The priority of their claims on the 
                        Corporation's net revenues with respect to 
                        principal and interest payments.
                            (vi) Any other terms and conditions.
                    (B) Inapplicability of right to prescribe terms.--
                Section 9108(a) of title 31, United States Code, shall 
                not apply to the Corporation.
    (d) Inapplicability of Securities Requirements.--The Corporation 
shall be considered an executive department of the United States for 
purposes of section 3(c) of the Securities Exchange Act of 1934 (15 
U.S.C. 78c(c)).
    (e) Applicability of FFB.--The Corporation may issue or sell bonds 
to the Federal Financing Bank, with the concurrence of the Secretary of 
Energy and the Secretary of Treasury, for purposes of purchasing 
equipment or constructing uranium enrichment facilities in Portsmouth, 
Ohio and Paducah, Kentucky.

SEC. 14. EXEMPTION FROM TAXATION AND PAYMENTS IN LIEU OF TAXES.

    (a) Exemption From Taxation.--In order to render financial 
assistance to those States and localities in which the facilities of 
the Corporation are located, the Corporation shall, beginning in fiscal 
year 2001, make payments to State and local governments as provided in 
this section. These payments shall be in lieu of any and all State and 
local taxes on the real and personal property of the Corporation. All 
property of the Corporation is expressly exempted from taxation in any 
manner or form by any State, county, or other local government entity 
including State, county, or other local government sales tax.
    (b) Payments in Lieu of Taxes.--Beginning in fiscal year 2001, the 
Corporation shall make annual payments, in amounts determined by the 
Corporation to be fair and reasonable, to the State and local 
governmental agencies having tax jurisdiction in any area where 
facilities of the Corporation are located. In making these 
determinations, the Corporation shall be guided by the following 
criteria:
            (1) The Corporation shall take into account the customs and 
        practices prevailing in the area with respect to appraisal, 
        assessment, and classification of industrial property and any 
        special considerations extended to large-scale industrial 
        operations.
            (2) The payment made to any taxing authority for any period 
        shall not be less than the payments that would have been made 
        to the taxing authority for the same period by USEC, Inc. with 
        respect to property that has been transferred to USEE and that 
        would have been attributable to the ownership, management, 
        operation, and maintenance of the Department's uranium 
        enrichment facilities, applying the laws and policies 
        prevailing immediately prior to the transition date.
    (c) Time of Payments.--Payments shall be made by the Corporation at 
the time when payments of taxes by taxpayers to each taxing authority 
are due and payable.
    (d) Determination of Amount Due.--The determination by the 
Corporation of the amounts due under this section shall be final and 
conclusive.

SEC. 15. COOPERATION WITH OTHER AGENCIES.

    The Corporation may request to use on a reimbursable basis the 
available services, equipment, personnel, and facilities of agencies of 
the United States, and on a similar basis may cooperate with such 
agencies in the establishment and use of services, equipment, and 
facilities of the Corporation. The Corporation may confer with and 
avail itself of the cooperation, services, records, and facilities of 
State, territorial, municipal, or other local agencies.

SEC. 16. APPLICABILITY OF CERTAIN FEDERAL LAWS.

    (a) Antitrust Laws.--The Corporation shall conduct its activities 
in a manner consistent with the policies expressed in the following 
antitrust laws:
            (1) The Sherman Act (15 U.S.C. 1-7).
            (2) The Clayton Act (15 U.S.C. 12-27).
            (3) Sections 73 and 74 of the Wilson Tariff Act (15 U.S.C. 
        8 and 9).
    (b) Environmental Laws.--The Corporation shall be subject to, and 
comply with, all Federal and State, interstate, and local environmental 
laws and requirements, both substantive and procedural, in the same 
manner, and to the same extent, as any person who is subject to such 
laws and requirements. For purposes of enforcing any such law or 
substantive or procedural requirements (including any injunctive 
relief, administrative order, or administrative penalty or fine) 
against the Corporation, the United States expressly waives any 
immunity otherwise applicable to the Corporation. For the purposes of 
this subsection, the term ``person'' means an individual, trust, firm, 
joint stock company, corporation, partnership, association, State, 
municipality, or political subdivision of a State.
    (c) OSHA Requirements.--Notwithstanding sections 3(5), 4(b)(1), and 
19 of the Occupational Safety and Health Act of 1970 (29 U.S.C. 652(5), 
653(b)(1), and 668)), the Corporation shall be subject to, and comply 
with, such Act and all regulations and standards promulgated thereunder 
in the same manner, and to the same extent, as an employer is subject 
to such Act. For the purposes of enforcing such Act (including any 
injunctive relief, administrative order, or civil, administrative, or 
criminal penalty or fine) against the Corporation, the United States 
expressly waives any immunity otherwise applicable to the Corporation.
    (d) Labor Standards.--The Act of March 3, 1931 (known as the Davis-
Bacon Act) (40 U.S.C. 276a et seq.) and the Service Contract Act of 
1965 (41 U.S.C. 351 et seq.) shall apply to the Corporation. All 
laborers and mechanics employed on the construction, alteration, or 
repair of projects funded, in whole or in part, by the Corporation 
shall be paid wages at rates not less than those prevailing on projects 
of a similar character in the locality as determined by the Secretary 
of Labor in accordance with such Act of March 3, 1931. The Secretary of 
Labor shall have, with respect to the labor standards specified in this 
subsection, the authority and functions set forth in Reorganization 
Plan Numbered 14 of 1950 (15 F.R. 3176, 64 Stat. 1267) and the Act of 
June 13, 1934 (40 U.S.C. 276c). Determinations made under the Act of 
March 3, 1931, shall not be used by USEE to determine whether to 
subcontract contract or self perform work activities, nor shall such 
determination be used to allocate or select any workforce for any 
covered work.
    (e) Energy Reorganization Act Requirements.--The Corporation is 
subject to the provisions of section 210 of the Energy Reorganization 
Act of 1974 (42 U.S.C. 5850) to the same extent as an employer subject 
to such section, and, with respect to the operation of the facilities 
leased by the Corporation, section 206 of the Energy Reorganization Act 
of 1974 (42 U.S.C. 5846) shall apply to the directors and officers of 
the Corporation.
    (f) Exemption From Federal Property Requirements.--The Corporation 
shall not be subject to the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 471 et seq.).

SEC. 17. CONTROL OF INFORMATION.

    (a) In General.--Except as provided in subsection (b), the 
Corporation may protect trade secrets and commercial or financial 
information to the same extent as a privately owned corporation.
    (b) Other Applicable Laws.--Section 552 of title 5, United States 
Code, shall apply to the Corporation, and such information shall be 
subject to the applicable provisions of law protecting the 
confidentiality of trade secrets and business and financial 
information, including section 1905 of title 18, United States Code. 
Transcripts of the Board of Directors' meetings shall be made available 
to the public in a public reading room at the USEE headquarters and 
upon request consistent with section 552 of title 5, United States 
Code.

SEC. 18. TRANSITION.

    (a) Transition Manager.--Within 30 days after the date of the 
enactment of this Act, the President shall appoint a Transition 
Manager, who shall serve at the pleasure of the President until a 
quorum of the Board has been appointed and confirmed by the United 
States Senate in accordance with section 7. The Transition Manager 
shall be paid at the same rate as is paid a member of the Cabinet under 
section 5312 of title 5, United States Code, and shall then serve at 
the pleasure of the Board.
    (b) Powers.--
            (1) In general.--Until a quorum of the Board has qualified, 
        the Transition Manager shall exercise the powers and duties of 
        the Board.

SEC. 19. MARKETING AND CONTRACTING AUTHORITY.

    (a) Exclusive Marketing Agent.--USEE shall act as the exclusive 
marketing agent on behalf of the United States Government for entering 
into contracts for providing enriched uranium (including low-enriched 
uranium derived from highly enriched uranium) and uranium enrichment 
and related services. The Department may not market enriched uranium 
(including low-enriched uranium derived from highly enriched uranium) 
or uranium enrichment and related services, after the transition date.
    (b) Transfer of Contracts.--
            (1) In general.--Except as provided in paragraph (2), all 
        contracts, agreements, and leases between the Energy Department 
        and USEC, Inc. including all uranium enrichment contracts and 
        power purchase contracts, that have been executed before the 
        transition date and that relate to uranium enrichment and 
        related services shall transfer to the Corporation.
            (2) Nontransferable power contracts.--If the Secretary of 
        Energy determines that a power purchase contract executed by 
        the Department prior to the transfer of ownership of USEC, Inc. 
        date cannot be transferred under its terms, the Secretary may 
        continue to receive power under the contract and resell such 
        power to the Corporation at cost.
    (c) Sales of Services.--The USEE may only sell uranium and 
conversion services from its inventories in a manner that will have no 
material adverse impact on the domestic conversion or mining 
industries, consistent with the restrictions contained in the USEC 
Privatization Act.

SEC. 20. PRICING.

    (a) Services Provided to Commercial Customers.--The Corporation 
shall establish prices for its products, materials, and services 
provided to customers other than the Department on a basis that will 
allow it to be competitive in the marketplace for such services.
    (b) Services Provided to DOE.--The Corporation shall charge prices 
to the Department for uranium enrichment services provided on a basis 
that will allow it to recover its costs, on a yearly basis, for 
providing products, materials, and services.

SEC. 20. LEASING OF ENRICHMENT FACILITIES OF DEPARTMENT.

    (a) In General.--The Corporation shall lease the Paducah Gaseous 
Diffusion Plant in Paducah, Kentucky, the Portsmouth Gaseous Diffusion 
Plant in Piketon, Ohio, and related property of the Department, until 
January 1, 2005. Thereafter, the Corporation shall have the exclusive 
option to lease such facilities and related property for additional 
periods.
    (b)(1) Terms of Lease.--The Corporation and the Energy Department 
shall set mutually agreeable terms for a lease under subsection (a), 
including specifying annual payments to the Department by the 
Corporation for the lease of facilities, buildings, structures, and 
equipment. The amount of annual payments shall be equal to the cost 
incurred by the Department in administering the lease and providing 
services related to the lease to USEE (excluding depreciation and 
imputed interest on original plant investments in the Department's 
gaseous diffusion plants and costs under subsection (d)).
    (2) Gas Centrifuge Enrichment Plant.--The Department of Energy is 
authorized, subject to conditions contained in this Act, to enter into 
a lease for the Department of Energy's GCEP facilities at Portsmouth, 
Ohio or other buildings, land, or structures at the Paducah, Kentucky 
facility for purposes of deploying centrifuge or other advanced 
enrichment technology. The Secretary of Energy shall provide that, 
after consultation with Community Reuse Organizations, affected 
employee representatives, and local governments, that the terms of such 
lease shall require USEE, or its contractors or DOE's contractors to 
provide a right of first refusal to those workers who are displaced 
from employment at the gaseous diffusion plants.
    (c) Exclusion of Facilities for Production of Highly Enriched 
Uranium.--Subsection (a) shall not apply to Department facilities 
necessary for the production of highly enriched uranium. The Secretary 
may grant to 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, environmental 
response actions, or corrective actions with respect to conditions 
existing before July 28, 1998, shall remain the sole responsibility of 
the Department of Energy.
    (e) Environmental Audit.--The Secretary of Energy, in consultation 
with the Administrator of the Environmental Protection Agency, shall 
conduct a comprehensive environmental audit identifying environmental 
conditions that will remain the responsibility of the Department of 
Energy pursuant to subsection (d) after the transfer of ownership of 
USEC, Inc. Such audit shall be completed no later than 180 days after 
the transfer of ownership of USEC, Inc.
    (f) Treatment Under Price-Anderson Provisions.--Any lease executed 
between the Secretary and the Corporation under this section shall be 
deemed to be a contract for purposes of section 170(d) of the Atomic 
Energy Act of 1954.
    (g) Waiver of EIS Requirement.--The execution of the lease by the 
Corporation and the Department 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. 21. CAPITAL STRUCTURE OF CORPORATION.

    (a) Capital Stock.--
            (1) Issuance to secretary of the treasury.--The Corporation 
        shall issue capital stock. Such stock shall represent an equity 
        investment equal to the net valuation of the corporation at the 
        time of the transfer of ownership of USEC, Inc. The Secretary 
        of the Treasury shall hold such stock for the United States, 
        except that all rights and duties pertaining to management of 
        the Corporation shall remain vested in the Board.
            (2) Restriction on transfers of stock by united states.--
        The capital stock of the Corporation shall not be sold, 
        transferred, or conveyed by the United States.
            (3) Annual assessment.--The Secretary of the Treasury shall 
        annually assess the value of the stock held by the Secretary 
        under paragraph (1) and submit to the Congress a report setting 
        forth such value. The annual assessment of the Secretary shall 
        be subject to review by an independent auditor.
    (b) Payment of Dividends.--The Corporation may, at the discretion 
of the Board of Directors, pay into miscellaneous receipts of the 
Treasury of the United States or such other fund as is provided by law, 
dividends on the capital stock, out of earnings of the Corporation, as 
a return on the investment represented by such stock if such funds are 
not required for the projected operations of USEE.
    (c) Patents of the Energy Department.--The Corporation may at any 
time apply to the Department of Energy for a patent license for the use 
of an invention or discovery useful in the production or utilization of 
special nuclear material or atomic energy covered by a patent when the 
patent has not been declared to be affected with the public interest 
and when use of the patent is within the Corporation's authority.

SEC. 22. AUTHORITY TO CONDUCT HOT STANDBY AND STRATEGIC RESERVE 
              ACTIVITIES ON BEHALF OF THE UNITED STATES.

    (a) Hot Standby.--In the event that a gaseous diffusion plant is 
closed, the Department of Energy is authorized to contract with USEE to 
operate gaseous diffusion plants on hot standby, in order to assure 
reliability of enrichment capacity. Subject to appropriations, the 
Department of Energy is authorized to expend $100,000,000 per year to 
carry out this activity until September 30, 2005.
    (b) Strategic SWU Reserve.--The Department of Energy is directed to 
assess the long term needs of the domestic nuclear utility industry 
with respect to low enriched uranium, and to establish adequate 
strategic reserves to assure reliable supply in the event a uranium 
enrichment plant is closed and the United States is dependent upon only 
one gaseous diffusion plant. Such supply shall be sufficient to cover 
interruptions of 100 percent of United States demand and 100 percent of 
United States obligations to any other country under the provisions of 
the Nuclear Nonproliferation Act of 1978 until new uranium enrichment 
technology has been deployed. The Department is authorized to contract 
with USEE to purchase at cost the SWU delivered under the Russian HEU 
Agreement, at prices to be determined through an arms length 
transaction between the parties, and contract with USEE to provide 
blend down services for highly enriched uranium for this strategic 
reserve.

SEC. 23. AUTHORITY TO ENTER INTO SUBLEASES FOR PURPOSES OF ECONOMIC 
              DEVELOPMENT.

    The USEE is authorized to enter into subleases with Community Reuse 
Organization for the re-use and redevelopment of property owned by the 
Department of Energy and leased by USEE at the Portsmouth Gaseous 
Diffusion Plant and Paducah Gaseous Diffusion Plant. Such subleases 
shall be subject to the approval of the Secretary of Energy.

SEC. 24. LIABILITY.

    No civil actions may be brought in any court against any Federal 
official for any acts arising out of the refederalization of USEC, 
Inc., except with respect to Federal securities laws or violations of 
title 18, United States Code.
                                 <all>