[Congressional Record Volume 142, Number 11 (Friday, January 26, 1996)]
[Senate]
[Pages S516-S521]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       THE USEC PRIVATIZATION ACT

                                 ______


               MURKOWSKI (AND OTHERS) AMENDMENT NO. 3121

  (Ordered to lie on the table.)
  Mr. MURKOWSKI (for himself, Mr. Johnston, Mr. Domenici, and Mr. Ford) 
submitted an amendment intended to be proposed by them to the bill (S. 
755) to amend the Atomic Energy Act of 1954 to provide for the 
privatization of the United States Enrichment Corporation, as follows:

       Strike out all after the enacting clause and insert in lieu 
     thereof:

     SEC. 1. SHORT TITLE.

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

     SEC. 2. DEFINITIONS.

       For purposes of this Act:
       (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 isotope content into 2 components, 1 
     having a higher percentage of a fissile isotope and 1 having 
     a lower percentage.

     SEC. 3. SALE OF THE CORPORATION.

       (A) Authorization.--The Board of Directors of the 
     Corporation, with the approval of the Secretary of the 
     Treasury, shall 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, 
     enrichment and conversion services, and, to the extent not 
     inconsistent with such purposes, secures the maximum 
     proceeds to the United States.
       (b) Proceeds.--Proceeds from the sale of the United States' 
     interest in the Corporation shall be deposited in the general 
     fund of the Treasury.

     SEC. 4. METHOD OF SALE.

       (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 law 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 reliable and economical domestic uranium mining 
     and enrichment industries.
       (c) Adequate Proceeds.--The Secretary of the Treasury shall 
     not allow the privatization of the Corporation unless before 
     the sale date the Secretary of the Treasury determines that 
     the method of transfer will provide the maximum proceeds to 
     the Treasury consistent with the principles set forth in 
     section 3(a).
       (d) 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.
       (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 the 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 section 205 of 
     title 18, United States Code.
       (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 stated in 

[[Page S517]]
     section 207 (a), (b), (c), and (d) of title 18, United States Code, 
     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.

       Concurrent 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 the 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 to be 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 privitation 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 profit making 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 from any action taken by any agent or 
     officer of the United States in connection with 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 gaseous 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 sponsors 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 plan 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 

[[Page S518]]
     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 eligible 
     persons, as described under subparagraph (B), 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) Persons 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 (referred to in this section as ``CSRS'') 
     or the Federal Employees' Retirement System (referred to in 
     this section as ``FERS'') on the day immediately preceding 
     the privatization date shall elect--
       (i) to retain the employee's 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 the 
     employee's 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 Benefits Program (referred to in this 
     section as ``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.

       (a) Securities 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.
       (b) Ownership Limitation.--Immediately following the 
     consummation of the transaction or series of transactions 
     pursuant to which 100 percent of the ownership of the 
     Corporation is transferred to private investors, and for a 
     period of three years thereafter, no person may acquire, 
     directly or indirectly, beneficial ownership of securities 
     representing more than 10 percent of the total votes of all 
     outstanding voting securities of the Corporation. The 
     foregoing limitation shall not apply to--
       (1) any employee stock ownership plan of the Corporation,
       (2) members of the underwriting syndicate purchasing shares 
     in stabilization transactions in connection with the 
     privatization, or
       (3) in the case of shares beneficially held in the ordinary 
     course of business for others, any commercial bank, broker-
     dealer, or clearing agency.

     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 

[[Page S519]]
     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;
       (C) in 1995 and 1996 to the Russian Executive Agent at the 
     purchase price for use in matched sales pursuant to the 
     Suspension Agreement; or,
       (D) 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 U3O8 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 0.03 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 U.S. 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, or upon request of the Russian 
     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 
     U3O8 (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. 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. 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. U3O8 equivalent)
  1998................................................................2
  1999................................................................4
  2000................................................................6
  2001................................................................8
  2002...............................................................10
  2003...............................................................12
  2004...............................................................14
  2005...............................................................16
  2006...............................................................17



                           *   *   *   *   *
     * * * 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 delivery 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 transfer 
     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 for national security needs,
       (B) the Secretary determines that the sale of the material 
     will not have an adverse material 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 
     determines 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 

[[Page S520]]
     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. 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 contractors and subcontractors 
     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. 16. 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 the Commission determines that--
       ``(1) the Corporation is owned, controlled, or dominated by 
     an alien, a foreign corporation, or a foreign government; or
       ``(2) the issuance of such a license or certificate of 
     compliance would be inimical to--
       ``(A) the common defense and security of the United States; 
     or
       ``(B) the maintenance of a reliable and economical domestic 
     source of enrichment services.''.
       (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 NCR 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 under section 1701(c) 
     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 
     privatization 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. 17. 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.

  Mr. MURKOWSKI. Mr. President, on behalf of myself and Mr. Johnston, 
Mr. Domenici and Mr. Ford, I submit a substitute amendment to S. 755, 
Calendar number 244, the USEC Privatization Act.
  Mr. President, this substitute is virtually identical to USEC 
privatization language contained in the Budget Reconciliation measure 
passed earlier by the Senate. The differences in this amendment and the 
reconciliation language are as follows:
  We included language in section 4(e) stipulating that the expenses of 
privatization shall be paid from Corporation revenue accounts in the 
U.S. Treasury. This language is contained in the bill as reported by 
the committee, but it was left out of the reconciliation language. The 
administration has requested that this language be restored, and we 
have agreed to do that in this amendment.
  The language in this amendment also departs from the language in the 
reconciliation bill in section 13, dealing with low level waste. We 
have reverted to the language in the bill as reported by the committee, 
and have thus solved another concern related to uranium tails that had 
been raised by the administration.
  Mr. President, with all of the discussions about partisanship and the 
difficulty of working out complex legislation in this Congress, let me 
highlight the fact that the year-long effort to develop this 
legislation has been bipartisan and bicameral. House and Senate 
staffers have sat down with administration officials and jointly 
developed the bulk of the language in this substitute amendment.
  I would hasten to add, however, that this amendment does not contain 
language sought by the administration related to a waiver of trade 
laws. That matter is the subject of ongoing discussions between 
administration officials, the Senate Finance Committee, and the House 
Ways and Means Committee. Those discussions will continue, and those 
committees will continue their deliberations on the question of waiver 
language. The absence of waiver language in this amendment should not 
be construed by anyone as a signal that efforts to arrive at a 
compromise in that area have been abandoned.
  It is my hope that we can move this measure as a stand-alone bill, or 
as part of any other legislative vehicle that is available to us in the 
coming weeks. For that reason, I wanted my colleagues and the public to 
have an ample opportunity to review this language.
                                 ______


                 THE BALANCED BUDGET DOWNPAYMENT ACT, I

                                 ______


                       HARKIN AMENDMENT NO. 3122

  Mr. HARKIN proposed an amendment to the bill H.R. 2880, supra, as 
follows:

       At the appropriate place in the bill insert the following: 
     Notwithstanding any provision of this Act, all projects and 
     activities funded under the account heading ``Office of the 
     Inspector General'' under the Office of the Secretary in the 
     Department of Health and Human Services at a rate for 
     operations not to exceed an annual rate for new 

[[Page S521]]
     obligational authority of $58,493,000 for general funds together with 
     not to exceed an annual rate for new obligational authority 
     of $20,670,000 to be transferred and expended as authorized 
     by section 201(g)(1) of the Social Security Act from the 
     Hospital Insurance Trust Fund and the Supplemental Medical 
     Insurance Trust Fund.

                          ____________________