[Congressional Record Volume 148, Number 24 (Thursday, March 7, 2002)]
[Senate]
[Pages S1682-S1687]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2983. Mr. VOINOVICH (for himself, Mr. Bingaman, Mr. Smith of New 
Hampshire, Mr. Domenici, Ms. Landrieu, Mr. Murkowski, Mr. Hagel, Mr. 
Crapo, Mr. Thomas, Mr. Inhofe, Mr. Thompson, Mr. Bond, Mr. Campbell, 
Mr. Frist, Mr. Kyl, Mr. Craig, Mrs. Lincoln, Mr. Hutchinson, and Mr. 
Sessions) proposed an amendment to amendment SA 2917 proposed by Mr. 
Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to 
authorize funding the Department of Energy to enhance its mission areas 
through technology transfer and partnerships for fiscal years 2002 
through 2006, and for other purposes; as follows:

       On page 115, strike line 5 and all that follows through 
     page 119, line 10 and insert the following:

             Subtitle A--Price-Anderson Act Reauthorization

     SEC. 501. SHORT TITLE.

       This subtitle may be cited as the ``Price-Anderson 
     Amendments Act of 2002''.

     SEC. 502. EXTENSION OF INDEMNIFICATION AUTHORITY.

       (a) Indemnification of Nuclear Regulatory Commission 
     Licensees.--Section 170 c. of the Atomic Energy Act of 1954 
     (42 U.S.C. 2210(c)) is amended--
       (1) in the subsection heading, by striking ``LICENSES'' and 
     inserting ``LICENSEES''; and
       (2) by striking ``August 1, 2002'' each place it appears 
     and inserting ``August 1, 2012''.
       (b) Indemnification of Department of Energy Contractors.--
     Section 170 d.(1)(A) of the Atomic Energy Act of 1954 (42 
     U.S.C. 2210(d)(1)(A)) is amended by striking ``, until August 
     1, 2002,''.
       (c) Indemnification of Nonprofit Educational 
     Institutions.--Section 170 k. of the Atomic Energy Act of 
     1954 (42 U.S.C. 2210(k)) is amended by striking ``August 1, 
     2002'' each place it appears and inserting ``August 1, 
     2012''.

     SEC. 503. DEPARTMENT OF ENERGY LIABILITY LIMIT.

       (a) Indemnification of Department of Energy Contractors.--
     Seciton 170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(d)) is amended by striking paragraph (2) and inserting 
     the following:
       ``(2) In agreements of indemnification entered into under 
     paragraph (1), the Secretary--
       ``(A) may require the contractor to provide and maintain 
     financial protection of such a type and in such amounts as 
     the Secretary shall determine to be appropriate to cover 
     public liability arising out of or in connection with the 
     contractual activity; and
       ``(B) shall indemnify the persons indemnified against such 
     liability above the amount of the financial protection 
     required, in the amount of $10,000,000,000 (subject to 
     adjustment for inflation under subsection t.), in the 
     aggregate, for all persons indemnified in connection with 
     such contract and for each nuclear incident, including such 
     legal costs of the contractor as are approved by the 
     Secretary.''.
       (b) Contract Amendments.--Section 170 d. of the Atomic 
     Energy Act of 1954 (42 U.S.C. 2210(d)) is further amended by 
     striking paragraph (3) and inserting the following:
       ``(3) All agreements of indemnification under which the 
     Department of Energy (or its predecessor agencies) may be 
     required to indemnify any person under this section shall be 
     deemed to be amended, on the date of the enactment of the 
     Price-Anderson Amendments Act of 2002, to reflect the amount 
     of indemnity for public liability and any applicable 
     financial protection required of the contractor under this 
     subsection.''.
       (c) Liability Limit.--Section 170 e.(1)(B) of the Atomic 
     Energy Act of 1954 (42 U.S.C. 2210(e)(1)(B)) is amended
       (1) by striking ``the maximum amount of financial 
     protection required under subsection b. or''; and
       (2) by striking ``paragraph (3) of subsection d., whichever 
     amount is more'' and inserting ``paragraph (2) of subsection 
     d.''.

     SEC. 504. INCIDENTS OUTSIDE THE UNITED STATES.

       (a) Amount of Indemnification.--Section 170 d.(5) of the 
     Atomic Energy Act of 1954 (42 U.S.C. 2210(d)(5)) is amended 
     by striking ``$100,000,000'' and inserting ``$500,000,000''.
       (b) Liability Limit.--Seciton 170 e.(4) of the Atomic 
     Energy Act of 1954 (42 U.S.C. 2210(e)(4)) is amended by 
     striking ``$100,000,000'' and inserting ``$500,000,000''.

     SEC. 505. REPORTS.

       Section 170 p. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(p)) is amended by striking ``August 1, 1998'' and 
     inserting ``August 1, 2008''.

     SEC. 506. INFLATION ADJUSTMENT.

       Section 170 t. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(t)) is amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by adding after paragraph (1) the following:
       ``(2) The Secretary shall adjust the amount of 
     indemnification provided under an agreement of 
     indemnification under subsection d. not less than once during 
     each 5-year period following July 1, 2002, in accordance with 
     the aggregate percentage change in the Consumer Price Index 
     since--
       ``(A) that date, in the case of the first adjustment under 
     this paragraph; or
       ``(B) the previous adjustment under this paragraph.''.

     SEC. 507. CIVIL PENALTIES.

       (a) Repeal of Automatic Remission.--Section 234A b.(2) of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2282a (b)(2)) is 
     amended by striking the last sentence.
       (b) Limitation for Not-for-Profit Institutions.--Subsection 
     d. of section 234A of the Atomic Energy Act of 1954 (42 
     U.S.C. 2282a(d)) is amended to read as follows:
       ``d. (1) Notwithstanding subsection a., in the case of any 
     not-for-profit contractor, subcontractor, or supplier, the 
     total amount of civil penalties assessed under subsection a. 
     may not exceed the total amount of fees paid within any one-
     year period (as determined by the Secretary) under the 
     contract under which the violation occurs.
       ``(2) For purposes of this section, the term `not-for-
     profit' means that no part of the net earnings of the 
     contractor, subcontractor, or supplier inures, or may 
     lawfully inure, to the benefit of any natural person or for-
     profit artificial person.''.
       (c) Effective Date.--The amendments made by this section 
     shall not apply to any violation of the Atomic Energy Act of 
     1954 occurring under a contract entered into before the date 
     of enactment of this section.

     SEC. 508. TREATMENT OF MODULAR REACTORS.

       Section 170 b. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(b)) is amended by adding at the end the following:
       ``(5)(A) For purposes of this section only, the Commission 
     shall consider a combination of facilities described in 
     subparagraph (B) to be a single facility having a rated 
     capacity of 100,000 electrical kilowatts or more.
       ``(B) A combination of facilities referred to in 
     subparagraph (A) is 2 or more facilities located at a single 
     site, each of which has a rated capacity of 100,000 
     electrical kilowatts or more but not more than 300,000 
     electrical kilowatts, with a combined rated capacity of not 
     more than 1,300,000 electrical kilowatts.''.

     SEC. 509. EFFECTIVE DATE.

       The amendments made by sections 503(a) and 504 do not apply 
     to any nuclear incident

[[Page S1683]]

     that occurs before the date of the enactment of this 
     subtitle.
                                  ____

  SA 2984. Mr. REID proposed an amendment to amendment SA 2983 proposed 
by Mr. Voinovich (for himself, Mr. Bingaman, Mr. Smith of New 
Hampshire, Mr. Domenici, Ms. Landrieu, Mr. Murkowski, Mr. Hagel, Mr. 
Crapo, Mr. Thomas, Mr. Inhofe, Mr. Thompson, Mr. Bond, Mr. Campbell, 
Mr. Frist, Mr. Kyl, Mr. Craig, Mrs. Lincoln, Mr. Hutchinson, and Mr. 
Sessions) to the amendment SA 2917 proposed by Mr. Daschle (for himself 
and Mr. Bingaman) to the bill (S. 517) to authorize funding the 
Department of Energy to enhance its mission areas through technology 
transfer and partnerships for fiscal years 2002 through 2006, and for 
other purposes; as follows:

       In lieu of the matter to be inserted, insert the following:

     SEC. 5____. FINANCIAL PROTECTION FOR LICENSEES.

       (a) Standard Deferred Premium.--Section 170b.(1) of the 
     Atomic Energy Act of 1954 (42 U.S.C. 2210(b)(1)) is amended 
     in the third sentence by striking ``$63,000,000 (subject to 
     adjustment for inflation under subsection t.), but not more 
     than $10,000,000 in any 1 year'' and inserting ``$88,000,000 
     (subject to adjustment for inflation under subsection t.), 
     but not more than $20,000,000 in any 1 year (subject to 
     adjustment for inflation under subsection t.)''.
       (b) Financial Hardship.--Section 170b.(2)(A) of the Atomic 
     Energy Act of 1954 (42 U.S.C. 2210(b)(2)(A)) is amended by 
     striking ``paragraph (1)'' and all that follows and inserting 
     ``paragraph (1) for any facility if more than 1 nuclear 
     incident occurs in any 1 calendar year.''.
       (c) New Licenses.--Section 170c. of the Atomic Energy Act 
     of 1954 (42 U.S.C. 2210(c)) is amended--
       (1) by striking ``The Commission'' and inserting the 
     following:
       ``(1) Licenses issued on or before august 1, 2002.--The 
     Commission''; and
       (2) by adding at the end the following:
       ``(2) Licenses issued after august 1, 2002.--After August 
     1, 2002, as a condition to receiving a license for a 
     utilization facility under this Act, the applicant, before 
     receiving the license, shall obtain insurance coverage from 
     the private insurance market for the full potential liability 
     (including the public liability and any other liability) of 
     the person that might arise as a result of a nuclear incident 
     at the utilization facility.

     SEC. 5____. GUARANTEE OF DEFERRED PREMIUM; FINANCIAL 
                   QUALIFICATIONS.

       Section 170b. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(b)) is amended by adding at the end the following:
       ``(5) Guarantee of deferred premium.--
       ``(A) Condition of indemnification.--Not later than 180 
     days after the date of enactment of this paragraph, and not 
     less frequently than each year thereafter, the Commission, in 
     consultation with the Securities and Exchange Commission, 
     shall, as a condition of indemnification, require each 
     licensee to demonstrate that the licensee has the financial 
     ability to pay the full potential retrospective premium for 
     each reactor through 1 or more of--
       ``(i) a surety bond;
       ``(ii) a letter of credit or loan;
       ``(iii) an insurance policy; or
       ``(iv) maintenance of an escrow deposit of government 
     securities in reserves, a trust, or an equivalent instrument.
       ``(B) Reorganization proceedings.--If a licensee or 
     creditors of a licensee file a petition under chapter 11 of 
     title 11, United States Code, for reorganization of the 
     licensee, the Commission--
       ``(i) shall review the ability of the licensee to--

       ``(I) pay the full amount of prospective and standard 
     deferred premiums; and
       ``(II) ensure that adequate funds will be available for 
     safe operation of the licensed facility; and

       ``(ii) if the Commission determines that the licensee is 
     unable to meet the requirements of clause (i), shall not 
     renew any indemnification of the licensee under this section.
       ``(6) Financial qualifications.--
       ``(A) In general.--The Commission, in consultation with the 
     Securities and Exchange Commission, shall establish criteria 
     and procedures for determination of the minimum financial 
     qualifications for new licensees (including license 
     transferees) to ensure that the new licensee has the 
     resources and instruments necessary to--
       ``(i) operate safely if it becomes necessary to shut down a 
     reactor for 12 months or longer; and
       ``(ii) ensure payment of prospective and deferred premiums 
     under this subsection.
       ``(B) Condition.--A license shall be conditioned on meeting 
     and maintaining the minimum financial qualifications 
     established under subparagraph (A).''.

     SEC. 5____. PRESIDENTIAL COMMISSION ON INCIDENT CONSEQUENCES.

       Section 170(l) of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(l)) is amended--
       (1) in paragraph (1), by striking ``1988'' and inserting 
     ``2002'';
       (2) in paragraph (2)--
       (A) in subparagraph (A), by striking ``not less than 7 and 
     not more than 11 members'' and inserting ``6, 8, 10, or 12 
     members''; and
       (B) in subparagraph (B), by striking ``not more than a mere 
     majority of the members are of the same political party'' and 
     inserting ``there are equal numbers of members of each major 
     political party''; and
       (3) by striking paragraph (3) and inserting the following:
       ``(3) Duties.--
       ``(A) In general.--The study commission shall conduct a 
     comprehensive study of the economic, public health, and 
     environmental impacts of nuclear incidents that may result in 
     a full breach of containment and uncontained meltdown at a 
     facility built in accordance with an existing design or a 
     proposed design.
       ``(B) Inputs.--The matters to be studied under subparagraph 
     (A) include--
       ``(i) for each existing and proposed facility--

       ``(I) the public health effects; and
       ``(II) the economic costs attributable to public health 
     effects, property damage, environmental damage, and 
     evacuation and resettlement of affected populations;

     of a worst-case nuclear incident; and
       ``(ii) the ability of the licensee of each existing or 
     proposed facility to pay the standard deferred premium for a 
     potential occurrence at each covered facility of the licensee 
     and at a facility that is not covered by the licensee.
       ``(C) Sensitivity analysis.--
       ``(i) In general.--In studying the matters under 
     subparagraph (B)(i), the study commission shall conduct a 
     sensitivity analysis based on various modeling input 
     assumptions to determine the maximum potential consequences 
     of a worst-case nuclear incident.
       ``(ii) Assumptions.--The assumptions on which the 
     sensitivity analysis is based shall include assumptions 
     regarding--

       ``(I) nuclear incident scenarios;
       ``(II) weather patterns;
       ``(III) traffic patterns; and
       ``(IV) human behavior that may have an effect on evacuation 
     of persons threatened by a nuclear incident.''.

     SEC. 5____. ACTS OF TERRORISM.

       Section 11q. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2014(q)) is amended--
       (1) by striking ``q. The term'' and inserting the 
     following:
       ``q. Nuclear Incident.--
       ``(1) In general.--The term''; and
       (2) by adding at the end the following:
       ``(2) Occurrences.--
       ``(A) In general.--In paragraph (1), the term `occurrence' 
     includes an act that the President determines to have been an 
     act of domestic terrorism or international terrorism (as 
     those terms are defined in section 2331 of title 18, United 
     States Code).
       ``(B) No judicial review.--A determination of the President 
     under subparagraph (A) shall not be subject to judicial 
     review.''.

     SEC. 5____. TREATMENT OF NUCLEAR REACTOR FINANCIAL 
                   OBLIGATIONS.

       Section 523 of title 11, United States Code, is amended by 
     adding at the end the following:
       ``(f) Treatment of Nuclear Reactor Financial Obligations.--
     Notwithstanding any other provision of this title--
       ``(1) any funds or other assets held by a licensee or 
     former licensee of the Nuclear Regulatory Commission, or by 
     any other person, to satisfy the responsibility of the 
     licensee, former licensee, or any other person to comply with 
     a regulation or order of the Nuclear Regulatory Commission 
     governing the decontamination and decommissioning of a 
     nuclear power reactor licensed under section 103 or 104b. of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2133, 2134(b)) shall 
     not be used to satisfy the claim of any creditor in any 
     proceeding under this title, other than a claim resulting 
     from an activity undertaken to satisfy that responsibility, 
     until the decontamination and decommissioning of the nuclear 
     power reactor is completed to the satisfaction of the Nuclear 
     Regulatory Commission;
       ``(2) obligations of licensees, former licensees, or any 
     other person to use funds or other assets to satisfy a 
     responsibility described in paragraph (1) may not be 
     rejected, avoided, or discharged in any proceeding under this 
     title or in any liquidation, reorganization, receivership, or 
     other insolvency proceeding under Federal or State law; and
       ``(3) private insurance premiums and standard deferred 
     premiums held and maintained in accordance with section 170b. 
     of the Atomic Energy Act of 1954 (42 U.S.C. 2210(b)) shall 
     not be used to satisfy the claim of any creditor in any 
     proceeding under this title, until the indemnification 
     agreement executed in accordance with section 170c. of that 
     Act (42 U.S.C. 2210(c)) is terminated.''.
                                  ____

  SA 2985, Mr. BUNNING (for himself and Mr. Voinovich) submitted an 
amendment intended to be proposed to amendment SA 2917 proposed by Mr. 
Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to 
authorize funding the Department of Energy to enhance its mission areas 
through technology transfer and partnerships for fiscal years 2002 
through 2006, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC.   . INDUSTRIAL SAFETY RULES FOR DEPARTMENT OF ENERGY 
                   NUCLEAR FACILITIES.

       Section 170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(d) is amended by adding at the end the following new 
     paragraph:

[[Page S1684]]

       ``(8)(A) It shall be a condition of any agreement of 
     indemnification entered into under this subsection that the 
     indemnified party comply with regulations issued under this 
     paragraph.
       ``(B) Not later than 180 days after the date of the 
     enactment of this paragraph, the Secretary shall issue 
     industrial health and safety regulations that shall apply to 
     all Department of Energy contractors and subcontractors who 
     are covered under agreements entered into under this 
     subsection for operations at Department of Energy nuclear 
     facilities. Such regulations shall provide a level of 
     protection of worker health and safety that is substantially 
     equivalent to or identical to that provided by the industrial 
     and construction safety regulations of the Occupational 
     Safety and Health Administration (29 CFR 1910 and 1926), and 
     shall establish civil penalties for violation thereof that 
     are substantially equivalent to or identical to the civil 
     penalties applicable to violations of the industrial and 
     construction safety regulations of the Occupational Safety 
     and Health Administration. The Secretary shall amend 
     regulations under this subparagraph as necessary.
       ``(C) No later than 240 days after the date of the 
     enactment of this paragraph, all agreements described in 
     subparagraph (B), and all contracts and subcontracts for the 
     indemnified contractors and subcontractors, shall be modified 
     to incorporate the requirements of the regulations issued 
     under subparagraph (B). Such modifications shall require 
     compliance with the requirements of the regulations not later 
     than 1 year after the issuance of the regulations.
       ``(D) Enforcement of regulations issued under subparagraph 
     (B), and inspections required in the course thereof, shall be 
     conducted by the Office of Enforcement of the Office of 
     Environment, Safety, and Health of the Department of Energy. 
     The Secretary shall transmit to the Congress an annual report 
     on the implementation of this subparagraph.''.
                                  ____

  SA 2986, Mr. BINGAMAN (for himself Mr. Baucus, Mr. Bond, Mr. Breaux, 
Mr. Campbell, Mr. Conrad, Mr. Dorgan, Mr. Inhofe, Ms. Landrieu, Mrs. 
Lincoln, Mr. Thomas, Mr. Sessions, Mr. Rockefeller, Mr. Enzi, Mr. 
Murkowski, Mr. Nickles, Mr. Hutchinson, and Mr. Voinovich) proposed an 
amendment to amendment SA 2917 proposed by Mr. Daschle (for himself and 
Mr. Bingaman) to the bill (S. 517) to authorize funding the Department 
of Energy to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of title VI, add the following new section:

     ``SEC. 610. HYDRAULIC FRACTURING.

       ``Section 1421 of the Safe Drinking Water Act (42 U.S.C. 
     Sec. 300h) is amended by adding at the end the following:
       ``(e) Hydraulic Fracturing for Oil and Gas Production.--
       ``(1) Study of the effects of hydraulic fracturing.--
       ``(A) In general.--As soon as practicable, but in no event 
     later than 24 months after the date of enactment of this 
     subsection, the Administrator shall complete a study of the 
     known and potential effects on underground drinking water 
     sources of hydraulic fracturing, including the effects of 
     hydraulic fracturing on underground drinking water sources on 
     a nationwide basis, and within specific regions, States, or 
     portions of States.
       ``(B) Consultation.--In planning and conducting the study, 
     the Administrator shall consult with the Secretary of the 
     Interior, the Secretary of Energy, the Ground Water 
     Protection Council, affected States, and, as appropriate, 
     representatives of environmental, industry, academic, 
     scientific, public health, and other relevant organizations. 
     Such study may be accomplished in conjunction with other 
     ongoing studies related to the effects of oil and gas 
     production on groundwater resources.
       ``(C) Study elements.--The study conducted under 
     subparagraph (A) shall, at a minimum, examine and make 
     findings as to whether--
       ``(i) such hydraulic fracturing has endangered or will 
     endanger (as defined under subsection (d)(2)) underground 
     drinking water sources, including those sources within 
     specific regions, states or portions of States;
       ``(ii) there are specific methods, practices, or 
     hydrogeologic circumstances in which hydraulic fracturing has 
     endangered or will endanger underground drinking water 
     sources; and
       ``(iii) there are any precautionary actions that may reduce 
     or eliminate any such endangerment.
       ``(D) Study of hydraulic fracturing in a particular type of 
     geologic formation.--The Administrator may also complete a 
     separate study on the known and potential effects on 
     underground drinking water sources of hydraulic fracturing in 
     a particular type of geologic formation.
       ``(i) If such a study is undertaken, the Administrator 
     shall follow the procedures for study preparation and 
     independent scientific review set forth in subparagraphs 
     (1)(B) and (C) and (2) of this subsection. The Administrator 
     may complete this separate study prior to the completion of 
     the broader study of hydraulic fracturing required pursuant 
     to subparagraph (A) of this subsection.
       ``(ii) At the conclusion of independent scientific review 
     for any separate study, the Administrator shall determine, 
     pursuant to paragraph (3), whether regulation of hydraulic 
     fracturing in the particular type of geologic formation 
     addressed in the separate study is necessary under this part 
     to ensure that underground sources of drinking water will not 
     be endangered on a nationwide basis, or within a specific 
     region, State or portions of a state. Subparagraph (4) of 
     this subsection shall apply to any such determination by the 
     Administrator.
       ``(iii) If the Administrator completes a separate study, 
     the Administrator may use the information gathered in the 
     course of such a study in undertaking her broad study to the 
     extent appropriate. The broader study need not include a 
     reexamination of the conclusions reached by the Administrator 
     in any separate study.
       ``(2) Independent scientific review.--
       ``(A) In general.--Prior to the time the study under 
     paragraph (1) is completed, the Administrator shall enter 
     into an appropriate agreement with the National Academy of 
     Sciences to have the Academy review the conclusions of the 
     study.
       ``(B) Report.--Not later than 11 months after entering into 
     an appropriate agreement with the Administrator, the National 
     Academy of Sciences shall report to the Administrator, the 
     Committee on Energy and Commerce of the House of 
     Representatives, and the Committee on Environment and Public 
     Works of the Senate, on the--
       ``(i) findings related to the study conducted by the 
     Administrator under paragraph (1);
       ``(ii) the scientific and technical basis for such 
     findings; and
       ``(iii) recommendations, if any, for modifying the findings 
     of the study.
       ``(3) Regulatory determination.--
       ``(A) In general.--Not later than 6 months after receiving 
     the National Academy of Sciences report under paragraph (2), 
     the Administrator shall determine, after informal public 
     hearings and public notice and opportunity for comment, and 
     based on information developed or accumulated in connection 
     with the study required under paragraph (1) and the National 
     Academy of Sciences report under paragraph (2), either:
       ``(i) that regulation of hydraulic fracturing under this 
     part is necessary to ensure that underground sources of 
     drinking water will not be endangered on a nationwide basis, 
     or within a specific region, State or portions of a State; or
       ``(ii) that regulation described under clause (i) is 
     unnecessary.
       ``(B) Publication of determination.--The Administrator 
     shall publish the determination in the Federal Register, 
     accompanied by an explanation and the reasons for it.
       ``(4) Promulgation of regulations.--
       ``(A) Regulation necessary.--If the Administrator 
     determines under paragraph (3) that regulation by hydraulic 
     fracturing under this part is necessary to ensure that 
     hydraulic fracturing does not endanger underground drinking 
     water sources on a nationwide basis, or within a specific 
     region, State or portions of a State, the Administrator 
     shall, within 6 months after the issuance of that 
     determination, and after public notice and opportunity for 
     comment, promulgate regulations under section 1421 (42 U.S.C. 
     300h) to ensure that hydraulic fracturing will not endanger 
     such underground sources of drinking water. However, for 
     purposes of the Administrator's approval or disapproval under 
     section 1422 of any State underground injection control 
     program for regulating hydraulic fracturing, a State at any 
     time may make the alternative demonstration provided for in 
     section 1425 of this title.
       ``(B) Regulation unnecessary.--The Administrator shall not 
     regulate or require States to regulate hydraulic fracturing 
     under this part unless the Administrator determines under 
     paragraph (3) that such regulation is necessary. This 
     provision shall not apply to any State which has a program 
     for the regulation of hydraulic fracturing that was approved 
     by the Administrator under this part prior to the effective 
     date of this subsection.
       ``(C) Existing regulations.--A determination by the 
     Administrator under paragraph (3) that regulation is 
     unnecessary will relieve all States (including those with 
     existing approved programs for the regulation of hydraulic 
     fracturing) from any further obligation to regulate hydraulic 
     fracturing as an underground injection under this part.
       ``(5) Definition of hydraulic fracturing.--For purposes of 
     this subsection, the term `hydraulic fracturing' means the 
     process of creating a fracture in a reservoir rock, and 
     injecting fluids and propping agents, for the purposes of 
     reservoir stimulation related to oil and gas production 
     activities.
       ``(6) Savings.--Nothing in this subsection shall in any way 
     limit the authorities of the Administrator under section 1431 
     (42 U.S.C. 300i).

     ``SEC. 611. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to the 
     Administrator of the Environmental Protection Agency $100,000 
     for fiscal year 2003, to remain available until expended, for 
     a grant to the State of Alabama to assist in the 
     implementation of its regulatory program under section 1425 
     of the Safe Drinking Water Act.''
                                  ____

  SA 2987. Mr. CRAIG proposed an amendment to amendment SA 2917 
proposed by Mr. Daschle (for himself and

[[Page S1685]]

Mr. Bingaman) to the bill (S. 517) to authorize funding the Department 
of Energy to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; as follows:

       Strike subsection (e) of section 1254 and insert the 
     following:
       ``(e) Authorization of Appropriations.--From amounts 
     authorized under section 1251, the following amounts are 
     authorized for activities under this section and for 
     activities of the Fusion Energy Science Program.
       ``(1) for fiscal year 2003, $335,000,000;
       ``(2) for fiscal year 2004, $349,000,000;
       ``(3) for fiscal year 2005, $362,000,000; and
       ``(4) for fiscal year 2006, $377,000,000.''.
                                  ____

  SA 2988. Mr. MURKOWSKI proposed an amendment to amendment SA 2979 
proposed by Mr. McCain (for himself, Mr. Hollings, Mrs. Murray, Mr. 
Bingaman, Mr. Breaux, Mr. Smith of Oregon, Mr. Domenici, Mrs. 
Hutchison, and Mr. Wyden) to the amendment SA 2917 proposed by Mr. 
Daschle (for himself and Mr. Bingaman) to the bill (S. 517) to 
authorize funding the Department of Energy to enhance its mission areas 
through technology transfer and partnerships for fiscal years 2002 
through 2006, and for other purposes; as follows:

       At the appropriate place, insert the following:

     SEC.   . CRIMINAL PENALTIES FOR DAMAGING OR DESTROYING A 
                   FACILITY.

       Section 60123(b) of title 49, United States Code, is 
     amended--
       (1) by striking ``or'' after ``gas pipeline facility'' and 
     inserting a comma; and
       (2) by inserting after ``liquid pipeline facility'' the 
     following: ``, or either an intrastate gas pipeline facility 
     or an intrastate hazardous liquid pipeline facility that is 
     used in interstate or foreign commerce or in any activity 
     affecting interstate or foreign commerce''.
                                  ____

  SA 2989. Mrs. FEINSTEIN (for herself, Ms. Cantwell, Mr. Wyden, Mrs. 
Boxer, Mr. Leahy, Mr. Durbin, Mr. Fitzgerald, and Mr. Corzine) proposed 
an amendment to amendment SA 2917 proposed by Mr. Daschle (for himself 
and Mr. Bingaman) to the bill (S. 517) to authorize funding the 
Department of Energy to enhance its mission areas through technology 
transfer and partnerships for fiscal years 2002 through 2006, and for 
other purposes; as follows:

       At the end, add the following:

                      DIVISION ____--MISCELLANEOUS

                      TITLE I--ENERGY DERIVATIVES

     SEC. ____1. JURISDICTION OF THE COMMODITY FUTURES TRADING 
                   COMMISSION OVER ENERGY TRADING MARKETS.

       (a) Repeal of Definition of Exempt Commodity.--Section 1a 
     of the Commodity Exchange Act (7 U.S.C. 1a) is amended by 
     striking paragraph (14) and inserting the following:
       ``(14) [Repealed.]''.
       (b) FERC Liaison.--Section 2(a)(8) of the Commodity 
     Exchange Act (7 U.S.C. 2(a)(8)) is amended by adding at the 
     end the following:
       ``(C) FERC liaison.--The Commission shall, in cooperation 
     with the Federal Energy Regulatory Commission, maintain a 
     liaison between the Commission and the Federal Energy 
     Regulatory Commission.''.
       (c) Exempt Transactions.--Section 2 of the Commodity 
     Exchange Act (7 U.S.C. 2) is amended by striking subsection 
     (g) and inserting the following:
       ``(g) Exempt Transactions.--
       ``(1) Applicability.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     this Act shall not apply to any agreement, contract, or 
     transaction in a commodity other than an agricultural 
     commodity if the agreement, contract, or transaction--
       ``(i) is between persons that are eligible contract 
     participants at the time at which the agreement, contract, or 
     transaction is entered into;
       ``(ii) is subject to individual negotiation by the parties 
     to the agreement, contract, or transaction; and
       ``(iii) is not executed or traded on an electronic trading 
     facility.
       ``(B) Exceptions.--
       ``(i) In general.--An agreement, contract, or transaction 
     described in subparagraph (A) (other than an agreement, 
     contract, or transaction in an excluded commodity) shall be 
     subject to--

       ``(I) sections 4b, 4c(b), 4o, and 5b;
       ``(II) subsections (c) and (d) of section 6, 6c, 6d, and 
     8a, to the extent that those provisions--

       ``(aa) provide for the enforcement of the requirements 
     specified in this paragraph and paragraphs (2), (3), and (4); 
     and
       ``(bb) prohibit the manipulation of the market price of any 
     commodity in interstate commerce or for future delivery on or 
     subject to the rules of any contract market;

       ``(III) sections 6c, 6d, 8a, and 9(a)(2), to the extent 
     that those provisions prohibit the manipulation of the market 
     price of any commodity in interstate commerce or for future 
     delivery on or subject to the rules of any contract market;
       ``(IV) section 12(e)(2); and
       ``(V) section 22(a)(4).

       ``(ii) Excluded commodities.--An agreement, contract, or 
     transaction described in subparagraph (A) in an excluded 
     commodity shall be subject to--

       ``(I) sections 5a (to the extent provided in subsection (g) 
     of that section), 5b, and 5d; and
       ``(II) section 12(e)(2).

       ``(2) Bilateral dealer markets.--
       ``(A) In general.--A person or group of persons that 
     constitutes, maintains, administers, or provides a physical 
     or electronic facility or system in which a person has the 
     ability to offer, execute, trade, or confirm the execution of 
     an agreement, contract, or transaction (other than an 
     agreement, contract, or transaction in an excluded 
     commodity), by making or accepting the bids and offers of all 
     other participants on the facility or system (including 
     facilities or systems described in clauses (i) and (iii) of 
     section 1a(33)(B)), may offer to enter into, enter into, or 
     confirm the execution of any agreement, contract, or 
     transaction under paragraph (1) (other than an agreement, 
     contract, or transaction in an excluded commodity) if the 
     person or group of persons meets the requirement of 
     subparagraph (B).
       ``(B) Requirement.--The requirement of this subparagraph is 
     that a person or group of persons described in subparagraph 
     (A) shall--
       ``(i) register with the Commission in any capacity that the 
     Commission requires by rule, regulation, or order;
       ``(ii) file with the Commission any reports (including 
     large trader position reports) that the Commission requires 
     by rule, regulation, or order;
       ``(iii) maintain sufficient net capital, as determined by 
     the Commission;
       ``(iv)(I) maintain books and records consistent with 
     section 4i; and
       ``(II) make those books and records available to 
     representatives of the Commission and the Department of 
     Justice for inspection at all times; and
       ``(v) make available to the public any information that the 
     Commission determines to be appropriate for public 
     disclosure.
       ``(3) Reporting requirements.--On request of the 
     Commission, an eligible contract participant that trades on a 
     facility or system described in paragraph (2)(A) shall 
     provide to the Commission, within the time period specified 
     in the request and in such form and manner as the Commission 
     may require, any information relating to the transactions of 
     the eligible contract participant on the facility or system 
     that the Commission determines to be appropriate.
       ``(4) Transactions exempted by commission action.--Any 
     agreement, contract, or transaction exempt under paragraph 
     (1) (other than an agreement, contract, or transaction in an 
     excluded commodity) that would otherwise be exempted by the 
     Commission under section 4(c) shall be subject to--
       ``(A) sections 4b, 4c(b), and 4o; and
       ``(B) subsections (c) and (d) of section 6, 6c, 6d, 8a, and 
     9(a)(2), to the extent that those provisions prohibit the 
     manipulation of the market price of any commodity in 
     interstate commerce or for future delivery on or subject to 
     the rules of any contract market.
       ``(5) Effect.--This subsection does not affect the power of 
     the Federal Energy Regulatory Commission to regulate 
     transactions described in paragraph (1) under the Federal 
     Power Act (16 U.S.C. 791a et seq.).''.
       (d) Repeal of Guidelines for Transactions in Exempt 
     Commodities.--Section 2 of the Commodity Exchange Act (7 
     U.S.C. 2) is amended--
       (1) by striking subsection (h); and
       (2) by redesignating subsection (i) as subsection (h).
       (e) Contracts Designed to Defraud or Mislead.--Section 4b 
     of the Commodity Exchange Act (7 U.S.C. 6b) is amended by 
     striking subsection (a) and inserting the following:
       ``(a) Prohibition.--It shall be unlawful for any member of 
     a registered entity, or for any correspondent, agent, or 
     employee of any member, in or in connection with any order to 
     make, or the making of, any contract of sale commodity in 
     interstate commerce, made, or to be made on or subject to the 
     rules of any registered entity, or for any person, in or in 
     connection with any order to make, or the making of, any 
     agreement, transaction, or contract in a commodity subject to 
     this Act--
       ``(1) to cheat or defraud or attempt to cheat or defraud 
     any person;
       ``(2) willfully to make or cause to be made to any person 
     any false report or statement, or willfully to enter or cause 
     to be entered any false record;
       ``(3) willfully to deceive or attempt to deceive any person 
     by any means; or
       ``(4) to bucket the order, or to fill the order by offset 
     against the order of any person, or willfully, knowingly, and 
     without the prior consent of any person to become the buyer 
     in respect to any selling order of any person, or to become 
     the seller in respect to any buying order of any person.''.
       (f) Conforming Amendments.--The Commodity Exchange Act is 
     amended--
       (1) in section 2(e) (7 U.S.C. 2(e))--
       (A) in paragraph (1), by striking ``section 2(d)(2), 2(g), 
     or 2(h)(3)'' and inserting ``subsection (d)(2) or 
     (g)(1)(B)(ii)''; and
       (B) in paragraph (3), by striking ``or to comply with 
     section 2(h)(5)'';
       (2) in section 2(h) (7 U.S.C. 2(h)) (as redesignated by 
     subsection (d)), by striking ``2(h) or'';

[[Page S1686]]

       (3) in section 4i (7 U.S.C. 6i)--
       (A) by striking ``any contract market or'' and inserting 
     ``any contract market,''; and
       (B) by inserting ``, or pursuant to an exemption under 
     section 4(c)'' after ``transaction execution facility'';
       (4) in section 5a(g)(1) (7 U.S.C. 7a(g)(1)), by striking 
     ``, or exempt under section 2(h) of this Act'';
       (5) in section 5b (7 U.S.C. 7a-1)--
       (A) in subsection (a)(1), by striking ``2(h) or''; and
       (B) in subsection (b), by striking ``2(h) or''; and
       (6) in section 12(e)(2)(B) (7 U.S.C. 16(e)(2)(B)), by 
     striking ``2(h) or''.

     SEC. ____2. RECRUITMENT AND RETENTION OF QUALIFIED PERSONNEL 
                   AT THE COMMODITY FUTURES TRADING COMMISSION.

       (a) In General.--Section 2(a)(6) of the Commodity Exchange 
     Act (7 U.S.C. 2(a)(6)) is amended by adding at the end the 
     following:
       ``(G) Personnel matters.--
       ``(i) In general.--The Chairman may appoint and fix the 
     compensation of any officers, attorneys, economists, 
     examiners, and other employees that are necessary in the 
     execution of the duties of the Commission.
       ``(ii) Compensation.--

       ``(I) In general.--Rates of basic pay for all employees of 
     the Commission may be set and adjusted by the Chairman 
     without regard to the provisions of chapter 51 or subchapter 
     III of chapter 53 of title 5, United States Code.
       ``(II) Additional compensation.--The Chairman may provide 
     additional compensation and benefits to employees of the 
     Chairman if the same type and amount of compensation or 
     benefits are provided, or are authorized to be provided, by 
     any other Federal agency specified in section 1206 of the 
     Financial Institutions Reform, Recovery, and Enforcement Act 
     of 1989 (12 U.S.C. 1833b).
       ``(III) Comparability.--In setting and adjusting the total 
     amount of compensation and benefits for employees under this 
     subparagraph, the Chairman shall consult with, and seek to 
     maintain comparability with, any other Federal agency 
     specified in section 1206 of the Financial Institutions 
     Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
     1833b).''.

       (b) Conforming Amendments.--
       (1) Section 3132(a)(1) of title 5, United States Code, is 
     amended--
       (A) in subparagraph (C), by striking ``or'';
       (B) in subparagraph (D), by adding ``or'' at the end; and
       (C) by adding at the end the following:
       ``(E) the Commodity Futures Trading Commission.''.
       (2) Section 5316 of title 5, United States Code, is 
     amended--
       (A) by striking ``General Counsel, Commodity Futures 
     Trading Commission.''; and
       (B) by striking ``Executive Director, Commodity Futures 
     Trading Commission.''.
       (3) Section 5373(a) of title 5, United States Code, is 
     amended--
       (A) in paragraph (2), by striking ``or'' at the end;
       (B) by redesignating paragraph (3) as paragraph (4); and
       (C) by inserting after paragraph (2) the following:
       ``(3) section 2(a)(6)(G) of the Commodity Exchange Act.''.
       (4) Section 1206 of the Financial Institutions Reform, 
     Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b) is 
     amended by inserting ``the Commodity Futures Trading 
     Commission,'' after ``the Farm Credit Administration, ''.

     SEC. ____3. JURISDICTION OF THE FEDERAL ENERGY REGULATORY 
                   COMMISSION OVER ENERGY TRADING MARKETS.

       Section 402 of the Department of Energy Organization Act 
     (42 U.S.C. 7172) is amended by adding at the end the 
     following:
       ``(i) Jurisdiction Over Derivatives Transactions.--
       ``(1) In general.--To the extent that the Commission 
     determines that any contract under the jurisdiction of the 
     Commission is not in its jurisdiction, the transaction shall 
     be under the jurisdiction of the Commodity Futures Trading 
     Commission.
       ``(2) Meetings.--A designee of the Commission shall meet 
     quarterly with a designee of the Commodity Futures Trading 
     Commission, the Securities Exchange Commission, the Federal 
     Trade Commission, and the Federal Reserve Board to discuss--
       ``(A) conditions and events in energy trading markets; and
       ``(B) any changes in Federal law (including regulations) 
     that may be appropriate to regulate energy trading markets.
       ``(3) Liaison.--The Commission shall, in cooperation with 
     the Commodity Futures Trading Commission, maintain a liaison 
     between the Commission and the Commodity Futures Trading 
     Commission.''.
                                  ____

  SA 2990. Mr. BINGAMAN (for himself and Mr. Domenici) proposed an 
amendment to amendment SA 2917 proposed by Mr. Daschle (for himself and 
Mr. Bingaman) to the bill (S. 517) to authorize funding the Department 
of Energy to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; as follows:

       After section 1413 insert the following:

     SEC. 1414. UNITED STATES-MEXICO ENERGY TECHNOLOGY 
                   COOPERATION.

       (a) Finding.--Congress finds that the economic and energy 
     security of the United States and Mexico is furthered through 
     collaboration between the United States and Mexico on 
     research related to energy technologies.
       (b) Program.--
       (1) In general.--The Secretary, acting through the 
     Assistant Secretary for Environmental Management, shall 
     establish a collaborative research, development, and 
     deployment program to promote energy efficient, 
     environmentally sound economic development along the United 
     States-Mexico border to--
       (A) mitigate hazardous waste;
       (B) promote energy efficient materials processing 
     technologies that minimize environmental damage; and
       (C) protect the public health.
       (2) Consultation.--The Secretary, acting through the 
     Assistant Secretary for Environmental Management, shall 
     consult with the Office of Energy Efficiency and Renewable 
     Energy in carrying out paragraph (1)(B).
       (c) Program Management.--The program under subsection (b) 
     shall be managed by the Department of Energy Carlsbad 
     Environmental Management Field Office.
       (d) Cost Sharing.--The cost of any project or activity 
     carried out using funds provided under this section shall be 
     shared as provided in section 1403.
       (e) Technology Transfer.--In carrying out projects and 
     activities under this section to mitigate hazardous waste, 
     the Secretary shall emphasize the transfer of technology 
     developed under the Environmental Management Science Program 
     of the Department of Energy.
       (f) Intellectual Property.--In carrying out this section, 
     the Secretary shall comply with the requirements of any 
     agreement entered between the United States and Mexico 
     regarding intellectual property protection.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $5,000,000 for 
     fiscal year 2003 and $6,000,000 for each of fiscal years 2004 
     through 2006, to remain available until expended.
                                  ____

  SA 2991. Mr. BINGAMAN (for Mr. Akaka) proposed an amendment to 
amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. 
Bingaman) to the bill (S. 517) to authorize funding the Department of 
Energy to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; as follows:
       Strike section 1702 and insert the following:

     SEC. 1702. ASSESSMENT OF DEPENDENCE OF STATE OF HAWAII ON 
                   OIL.

       (a) Assessment.--The Secretary of Energy shall assess the 
     economic implications of the dependence of the State of 
     Hawaii on oil as the principal source of energy for the 
     State, including--
       (1) the short- and long-term prospects for crude oil supply 
     disruption and price volatility and potential impacts on the 
     economy of Hawaii;
       (2) the economic relationship between oil-fired generation 
     of electricity from residual fuel and refined petroleum 
     products consumed for ground, marine, and air transportation;
       (3) the technical and economic feasibility of increasing 
     the contribution of renewable energy resources for generation 
     of electricity, on an island-by-island basis, including--
       (A) siting and facility configuration;
       (B) environmental, operational, and safety considerations;
       (C) the availability of technology;
       (D) effects on the utility system, including reliability;
       (E) infrastructure and transport requirements;
       (F) community support; and
       (G) other factors affecting the economic impact of such an 
     increase and any effect on the economic relationship 
     described in paragraph (2);
       (4) the technical and economic feasibility of using 
     liquefied natural gas to displace residual fuel oil for 
     electric generation, including neighbor island opportunities, 
     and the effect of such displacement on the economic 
     relationship described in paragraph (2), including--
       (A) the availability of supply;
       (B) siting and facility configuration for onshore and 
     offshore liquefied natural gas receiving terminals;
       (C) the factors described in subparagraphs (B) through (F) 
     of paragraph (3); and
       (D) other economic factors;
       (5) the technical and economic feasibility of using 
     renewable energy sources (including hydrogen) for ground, 
     marine, and air transportation energy applications to 
     displace the use of refined petroleum products, on an island-
     by-island basis, and the economic impact of such displacement 
     on the relationship described in paragraph (2); and
       (6) an island-by-island approach to--
       (A) the development of hydrogen from renewable resources; 
     and
       (B) the application of hydrogen to the energy needs of 
     Hawaii.
       (b) Contracting Authority.--The Secretary may carry out the 
     assessment under subsection (a) directly or, in whole or in

[[Page S1687]]

     part, through 1 or more contracts with qualified public or 
     private entities.
       (c) Report.--Not later than 300 days after the date of 
     enactment of this Act, the Secretary shall prepare, in 
     consultation with agencies of the State of Hawaii and other 
     stakeholders, as appropriate, and submit to Congress, a 
     report detailing the findings, conclusions, and 
     recommendations resulting from the assessment.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

                          ____________________