[Congressional Record (Bound Edition), Volume 152 (2006), Part 10]
[Senate]
[Pages 13397-13400]
[From the U.S. Government Publishing Office, www.gpo.gov]




    DEPARTMENT OF ENERGY, NATIONAL SECURITY ACT FOR FISCAL YEAR 2007

  On Thursday, June 22, 2006, the Senate passed S. 2769, as follows:

                                S. 2769

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

     SECTION 1. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Table of contents.
Sec. 2. Congressional defense committees.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

                 Subtitle A--National Security Programs

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental cleanup.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

                       Subtitle B--Other Matters

Sec. 3111. Notice and wait requirement applicable to certain third 
              party financing arrangements.
Sec. 3112. Utilization of international contributions to the Global 
              Threat Reduction Initiative.
Sec. 3113. Utilization of international contributions to the Second 
              Line of Defense Core Program.
Sec. 3114. Extension of Facilities and Infrastructure Recapitalization 
              Program.
Sec. 3115. Two-year extension of authority for appointment of certain 
              scientific, engineering, and technical personnel.
Sec. 3116. Extension of deadline for transfer of lands to Los Alamos 
              County, New Mexico, and of lands in trust for the Pueblo 
              of San Ildefonso.
Sec. 3117. Limitations on availability of funds for Waste Treatment and 
              Immobilization Plant.
Sec. 3118. Limitation on availability of funds for implementation of 
              the Russian Surplus Fissile Materials Disposition 
              Program.
Sec. 3119. Limitation on availability of funds for construction of MOX 
              Fuel Fabrication Facility.
Sec. 3120. Technical correction related to authorization of 
              appropriations for fiscal year 2006.
Sec. 3121. Education of future nuclear engineers.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Transfer of government-furnished uranium stored at Sequoyah 
              Fuels Corporation, Gore, Oklahoma.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Completion of equity finalization process for Naval 
              Petroleum Reserve Numbered 1.

     SEC. 2. CONGRESSIONAL DEFENSE COMMITTEES.

       For purposes of this Act, the term ``congressional defense 
     committees'' has the meaning given that term in section 
     101(a)(16) of title 10, United States Code.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

                 Subtitle A--National Security Programs

     SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated to the Department of Energy for 
     fiscal year 2007 for the activities of the National Nuclear 
     Security Administration in carrying out programs necessary 
     for national security in the amount of $9,333,311,000, to be 
     allocated as follows:
       (1) For weapons activities, $6,455,389,000.
       (2) For defense nuclear nonproliferation activities, 
     $1,726,213,000.
       (3) For naval reactors, $795,133,000.
       (4) For the Office of the Administrator for Nuclear 
     Security, $356,576,000.
       (b) Authorization of New Plant Projects.--From funds 
     referred to in subsection (a) that are available for carrying 
     out plant projects, the Secretary of Energy may carry out new 
     plant projects for the National Nuclear Security 
     Administration as follows:
       (1) For readiness in technical base and facilities, the 
     following new plant projects:
       Project 07-D-140, Readiness in Technical Base and 
     Facilities Program, project engineering and design, various 
     locations, $4,977,000.

[[Page 13398]]

       Project 07-D-220, Radioactive liquid waste treatment 
     facility upgrade project, Los Alamos National Laboratory, Los 
     Alamos, New Mexico, $14,828,000.
       (2) For facilities and infrastructure recapitalization, the 
     following new plant project:
       Project 07-D-253, Technical Area 1 heating systems 
     modernization, Sandia National Laboratories, Albuquerque, New 
     Mexico, $14,500,000.
       (3) For defense nuclear nonproliferation, the following new 
     plant project:
       Project 07-SC-05, Physical Sciences Facility, Pacific 
     Northwest National Laboratory, Richland, Washington, 
     $4,220,000.
       (4) For naval reactors, the following new plant project:
       Project 07-D-190, Materials Research Technology Complex, 
     project engineering and design, Bettis Atomic Power 
     Laboratory, West Mifflin, Pennsylvania, $1,485,000.

     SEC. 3102. DEFENSE ENVIRONMENTAL CLEANUP.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2007 for defense 
     environmental cleanup activities in carrying out programs 
     necessary for national security in the amount of 
     $5,430,312,000.

     SEC. 3103. OTHER DEFENSE ACTIVITIES.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2007 for other defense 
     activities in carrying out programs necessary for national 
     security in the amount of $624,530,000.

     SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2007 for defense nuclear 
     waste disposal for payment to the Nuclear Waste Fund 
     established in section 302(c) of the Nuclear Waste Policy Act 
     of 1982 (42 U.S.C. 10222(c)) in the amount of $333,080,000.

                       Subtitle B--Other Matters

     SEC. 3111. NOTICE AND WAIT REQUIREMENT APPLICABLE TO CERTAIN 
                   THIRD PARTY FINANCING ARRANGEMENTS.

       Subtitle A of title XLVIII of the Atomic Energy Defense Act 
     (50 U.S.C. 2781 et seq.) is amended by adding at the end the 
     following new section:

     ``SEC. 4804. NOTICE AND WAIT REQUIREMENT APPLICABLE TO 
                   CERTAIN THIRD PARTY FINANCING ARRANGEMENTS.

       ``(a) Notice and Wait Requirement.--The Secretary of Energy 
     may not enter into an arrangement described in subsection (b) 
     until 30 days after the date on which the Secretary notifies 
     the congressional defense committees in writing of the 
     proposed arrangement.
       ``(b) Covered Arrangements.--
       ``(1) In general.--Except as provided in paragraph (2), an 
     arrangement referred to in subsection (a) is any alternative 
     financing arrangement, third party financing arrangement, 
     public-private partnership, privatization arrangement, 
     private capital arrangement, or other financing arrangement 
     that--
       ``(A) is entered into in connection with a project 
     conducted using funds authorized to be appropriated to the 
     Department of Energy to carry out programs necessary for 
     national security; and
       ``(B) involves a contractor or Federal agency obtaining and 
     charging to the Department of Energy as an allowable cost 
     under a contract the use of office space, facilities, or 
     other real property assets with a value of at least 
     $5,000,000.
       ``(2) Exception.--An arrangement referred to in subsection 
     (a) does not include an arrangement that--
       ``(A) involves the Department of Energy or a contractor 
     acquiring or entering into a capital lease for office space, 
     facilities, or other real property assets; or
       ``(B) is entered into in connection with a capital 
     improvement project undertaken as part of an energy savings 
     performance contract under section 801 of the National Energy 
     Conservation Policy Act (42 U.S.C. 8287).''.

     SEC. 3112. UTILIZATION OF INTERNATIONAL CONTRIBUTIONS TO THE 
                   GLOBAL THREAT REDUCTION INITIATIVE.

       Section 3132 of the Ronald W. Reagan National Defense 
     Authorization Act for Fiscal Year 2005 (Public Law 108-375; 
     50 U.S.C. 2569) is amended--
       (1) by redesignating subsection (f) as subsection (g); and
       (2) by inserting after subsection (e) the following new 
     subsection:
       ``(f) International Participation in Program.--(1) In order 
     to achieve international participation in the program under 
     subsection (b), the Secretary of Energy may, with the 
     concurrence of the Secretary of State, enter into one or more 
     agreements with any person, foreign government, or other 
     international organization that the Secretary of Energy 
     considers appropriate for the contribution of funds by such 
     person, government, or organization for purposes of the 
     programs described in paragraph (2)(B).
       ``(2)(A) Notwithstanding section 3302 of title 31, United 
     States Code, and subject to paragraphs (3) and (4), the 
     Secretary of Energy may retain and utilize for purposes of 
     the programs described in subparagraph (B) any amounts 
     contributed by a person, government, or organization under an 
     agreement under paragraph (1) without further appropriation 
     and without fiscal year limitation.
       ``(B) The programs described in this subparagraph are the 
     following programs within the Global Threat Reduction 
     Initiative:
       ``(i) The International Radiological Threat Reduction 
     program.
       ``(ii) The Emerging Threats and Gap Materials program.
       ``(iii) The Reduced Enrichment for Research and Test 
     Reactors program.
       ``(iv) The Russian Research Reactor Fuel Return program.
       ``(v) The Global Research Reactor Security program.
       ``(vi) The Kazakhstan Spent Fuel program.
       ``(3) The Secretary of Energy may not utilize under 
     paragraph (2) any amount contributed under an agreement under 
     paragraph (1) until 30 days after the date on which the 
     Secretary notifies the congressional defense committees of 
     the intent to utilize such amount, including the source of 
     such amount and the proposed purpose for which such amount 
     will be utilized.
       ``(4) If any amount contributed under paragraph (1) has not 
     been utilized within 5 years of such contribution, the 
     Secretary of Energy shall return such amount to the person, 
     government, or organization that contributed it.
       ``(5) Not later than 30 days after the receipt of any 
     amount contributed under paragraph (1), the Secretary of 
     Energy shall submit to the congressional defense committees a 
     notice of the receipt of such amount.
       ``(6) Not later than October 31 of each year, the Secretary 
     of Energy shall submit to the congressional defense 
     committees a report on the receipt and utilization of amounts 
     under this subsection during the preceding fiscal year. Each 
     report for a fiscal year shall set forth--
       ``(A) a statement of any amounts received under this 
     subsection, including the source of each such amount; and
       ``(B) a statement of any amounts utilized under this 
     subsection, including the purposes for which such amounts 
     were utilized.
       ``(7) The authority of the Secretary of Energy to accept 
     and utilize amounts under this subsection shall expire on 
     December 31, 2013.''.

     SEC. 3113. UTILIZATION OF INTERNATIONAL CONTRIBUTIONS TO THE 
                   SECOND LINE OF DEFENSE CORE PROGRAM.

       (a) International Contributions Authorized.--In order to 
     achieve international participation in the Second Line of 
     Defense Core Program administered by the National Nuclear 
     Security Administration, the Secretary of Energy may, with 
     the concurrence of the Secretary of State, enter into one or 
     more agreements with any person, foreign government, or other 
     international organization that the Secretary of Energy 
     considers appropriate for the contribution of funds by such 
     person, government, or organization for purposes of the 
     program.
       (b) Utilization of Contributions.--Notwithstanding section 
     3302 of title 31, United States Code, and subject to 
     subsections (c) and (d), the Secretary of Energy may retain 
     and utilize for purposes of the program any amounts 
     contributed by a person, government, or organization under an 
     agreement under subsection (a) without further appropriation 
     and without fiscal year limitation.
       (c) Notice and Wait Requirement.--The Secretary of Energy 
     may not utilize under subsection (b) any amount contributed 
     under an agreement under subsection (a) until 30 days after 
     the date on which the Secretary notifies the congressional 
     defense committees of the intent to utilize such amount, 
     including the source of such amount and the proposed purpose 
     for which such amount will be utilized.
       (d) Return of Unutilized Amounts.--If any amount 
     contributed under subsection (a) has not been utilized within 
     5 years of such contribution, the Secretary of Energy shall 
     return such amount to the person, government, or organization 
     that contributed it.
       (e) Notification Requirement.--Not later than 30 days after 
     the receipt of any amount contributed under subsection (a), 
     the Secretary of Energy shall submit to the congressional 
     defense committees a notice of the receipt of such amount.
       (f) Annual Report.--Not later than October 31 of each year, 
     the Secretary of Energy shall submit to the congressional 
     defense committees a report on the receipt and utilization of 
     amounts under this subsection during the preceding fiscal 
     year. Each report for a fiscal year shall set forth--
       (1) a statement of any amounts received under this section, 
     including the source of each such amount; and
       (2) a statement of any amounts utilized under this section, 
     including the purposes for which such amounts were utilized.
       (g) Termination.--The authority of the Secretary of Energy 
     to accept and utilize amounts under this subsection shall 
     expire on December 31, 2013.

     SEC. 3114. EXTENSION OF FACILITIES AND INFRASTRUCTURE 
                   RECAPITALIZATION PROGRAM.

       Section 3114 of the National Defense Authorization Act for 
     Fiscal Year 2004 (Public Law 108-136; 50 U.S.C. 2453 note) is 
     amended by striking ``2011'' both places it appears and 
     inserting ``2013''.

     SEC. 3115. TWO-YEAR EXTENSION OF AUTHORITY FOR APPOINTMENT OF 
                   CERTAIN SCIENTIFIC, ENGINEERING, AND TECHNICAL 
                   PERSONNEL.

       Section 4601(c)(1) of the Atomic Energy Defense Act (50 
     U.S.C. 2701(c)(1)) is amended by

[[Page 13399]]

     striking ``September 30, 2006'' and inserting ``September 30, 
     2008''.

     SEC. 3116. EXTENSION OF DEADLINE FOR TRANSFER OF LANDS TO LOS 
                   ALAMOS COUNTY, NEW MEXICO, AND OF LANDS IN 
                   TRUST FOR THE PUEBLO OF SAN ILDEFONSO.

       Section 632 of the Departments of Commerce, Justice, and 
     State, the Judiciary, and Related Agencies Appropriations 
     Act, 1998 (Public Law 105-119; 111 Stat. 2523; 42 U.S.C. 2391 
     note) is amended--
       (1) in subsection (d)(2), by striking ``10 years after the 
     date of enactment of this Act'' and inserting ``November 26, 
     2012''; and
       (2) in subsection (g)(3)(B), by striking ``the end of the 
     10-year period beginning on the date of enactment of this 
     Act'' and inserting ``November 26, 2012''.

     SEC. 3117. LIMITATIONS ON AVAILABILITY OF FUNDS FOR WASTE 
                   TREATMENT AND IMMOBILIZATION PLANT.

       Of the amount authorized to be appropriated under section 
     3102 for defense environmental cleanup activities and 
     available for the Waste Treatment and Immobilization Plant--
       (1) not more than 30 percent of such amount may be 
     obligated or expended until the date on which the Secretary 
     of Energy certifies to the congressional defense committees 
     that the Defense Contract Management Agency has certified the 
     earned value management system used to track and report costs 
     of the Waste Treatment and Immobilization Plant; and
       (2) not more than 60 percent of such amount may be 
     obligated or expended until the date on which the Secretary 
     of Energy certifies to the congressional defense committees 
     that the final seismic and ground motion criteria have been 
     approved by the Secretary and that the contracting officer of 
     the Waste Treatment and Immobilization Plant Project has 
     formally directed that the final criteria be used for the 
     final design of the Pretreatment Facility and the High-Level 
     Waste Facility of the Waste Treatment and Immobilization 
     Plant.

     SEC. 3118. LIMITATION ON AVAILABILITY OF FUNDS FOR 
                   IMPLEMENTATION OF THE RUSSIAN SURPLUS FISSILE 
                   MATERIALS DISPOSITION PROGRAM.

       (a) Limitation.--(1) Except as provided in subsection (b), 
     none of the amount authorized to be appropriated under 
     section 3101(a)(2) for defense nuclear nonproliferation 
     activities may be obligated for the implementation of the 
     Russian Surplus Fissile Materials Disposition Program (in 
     this section referred to as the ``Program'') until 30 days 
     after the date on which the Secretary of Energy provides to 
     the congressional defense committees written recommendations 
     regarding whether and in what manner the Program should 
     proceed.
       (2) The recommendations submitted under paragraph (1) shall 
     include--
       (A) a description of the disposition method the Government 
     of Russia has agreed to use;
       (B) a description of the assistance the United States 
     Government plans to provide under the Program;
       (C) an estimate of the total cost and schedule of such 
     assistance;
       (D) an explanation of how parallelism is to be defined for 
     purposes of the Program and whether such parallelism can be 
     achieved if the United States mixed-oxide (MOX) plutonium 
     disposition program continues on the current planned schedule 
     without further delays.
       (b) Exception.--The limitation under subsection (a) does 
     not apply to the obligation of funds to continue research and 
     development associated with the Gas Turbine-Modular Helium 
     Reactor (GT-MHR).

     SEC. 3119. LIMITATION ON AVAILABILITY OF FUNDS FOR 
                   CONSTRUCTION OF MOX FUEL FABRICATION FACILITY.

       None of the amount authorized to be appropriated under 
     section 3101(a)(2) for defense nuclear nonproliferation 
     activities may be obligated for construction project 99-D-
     143, the Mixed-Oxide (MOX) Fuel Fabrication Facility, until 
     30 days after the date on which the Secretary of Energy 
     provides to the congressional defense committees--
       (1) an independent cost estimate for the United States 
     Surplus Fissile Materials Disposition Program and facilities; 
     and
       (2) a written certification that the Department of Energy 
     intends to use the MOX Fuel Fabrication Facility for United 
     States plutonium disposition regardless of the future 
     direction of the Russian Surplus Fissile Materials 
     Disposition Program.

     SEC. 3120. TECHNICAL CORRECTION RELATED TO AUTHORIZATION OF 
                   APPROPRIATIONS FOR FISCAL YEAR 2006.

       Effective as of January 6, 2006, and as if included therein 
     as enacted, section 3101(a) of the National Defense 
     Authorization Act for Fiscal Year 2006 (Public Law 109-163; 
     119 Stat. 3537) is amended by striking ``$9,196,456'' and 
     inserting ``$9,196,456,000''.

     SEC. 3121. EDUCATION OF FUTURE NUCLEAR ENGINEERS.

       (a) Findings.--Congress makes the following findings:
       (1) The Department of Defense and the United States depend 
     on the specialized expertise of nuclear engineers who support 
     the development and sustainment of technologies including 
     naval reactors, strategic weapons, and nuclear power plants.
       (2) Experts estimate that over 25 percent of the 
     approximately 58,000 workers in the nuclear power industry in 
     the United States will be eligible to retire within 5 years, 
     representing both a huge loss of institutional memory and a 
     potential national security crisis.
       (3) This shortfall of workers is exacerbated by reductions 
     to the University Reactor Infrastructure and Education 
     Assistance program, which trains civilian nuclear scientists 
     and engineers. The defense and civilian nuclear industries 
     are interdependent on a limited number of educational 
     institutions to produce their workforce. A reduction in 
     nuclear scientists and engineers trained in the civilian 
     sector may result in a further loss of qualified personnel 
     for defense-related research and engineering.
       (4) The Department of Defense's successful Science, Math 
     and Research for Transformation (SMART) scholarship-for-
     service program serves as a good model for a targeted 
     scholarship or fellowship program designed to educate future 
     scientists at the postsecondary and postgraduate levels.
       (b) Report on Education of Future Nuclear Engineers.--
       (1) Study.--The Secretary of Energy shall study the 
     feasibility and merit of establishing a targeted scholarship 
     or fellowship program to educate future nuclear engineers at 
     the postsecondary and postgraduate levels.
       (2) Report required.--The President shall submit to the 
     congressional defense committees, together with the budget 
     request submitted for fiscal year 2008, a report on the study 
     conducted by the Secretary of Energy under paragraph (1).

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

     SEC. 3201. AUTHORIZATION.

       There are authorized to be appropriated for fiscal year 
     2007, $22,260,000 for the operation of the Defense Nuclear 
     Facilities Safety Board under chapter 21 of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2286 et seq.).

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

     SEC. 3301. TRANSFER OF GOVERNMENT-FURNISHED URANIUM STORED AT 
                   SEQUOYAH FUELS CORPORATION, GORE, OKLAHOMA.

       (a) Transport and Disposal.--Not later than March 31, 2007, 
     the Secretary of the Army shall, subject to subsection (c), 
     transport to an authorized disposal facility for appropriate 
     disposal all of the Federal Government-furnished uranium in 
     the chemical and physical form in which it is stored at the 
     Sequoyah Fuels Corporation site in Gore, Oklahoma.
       (b) Source of Funds.--Funds authorized to be appropriated 
     by section 301(1) for the Army for operation and maintenance 
     may be used for the transport and disposal required under 
     subsection (a).
       (c) Liability.--The Secretary may only transport uranium 
     under subsection (a) after receiving from Sequoyah Fuels 
     Corporation a written agreement satisfactory to the Secretary 
     that provides that--
       (1) the United States assumes no liability, legal or 
     otherwise, of Sequoyah Fuels Corporation by transporting such 
     uranium; and
       (2) the Sequoyah Fuels Corporation waives any and all 
     claims it may have against the United States related to the 
     transported uranium.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

     SEC. 3401. COMPLETION OF EQUITY FINALIZATION PROCESS FOR 
                   NAVAL PETROLEUM RESERVE NUMBERED 1.

       Section 3412(g) of the National Defense Authorization Act 
     for Fiscal Year 1996 (Public Law 104-106; 10 U.S.C. 7420 
     note) is amended--
       (1) by inserting ``(1)'' after ``(g)''; and
       (2) by adding at the end the following new paragraph:
       ``(2)(A) In light of the unique role that the independent 
     petroleum engineer who is retained pursuant to paragraph 
     (b)(2) performs in the process of finalizing equity 
     interests, and the importance to the United States taxpayer 
     of timely completion of the equity finalization process, the 
     independent petroleum engineer's `Shallow Oil Zone 
     Provisional Recommendation of Equity Participation,' which 
     was presented to the equity finalization teams for the 
     Department of Energy and Chevron U.S.A. Inc. on October 1 and 
     2, 2002, shall become the final equity recommendation of the 
     independent petroleum engineer, as that term is used in the 
     Protocol on NPR-1 Equity Finalization Implementation Process, 
     July 8, 1996, for the Shallow Oil Zone unless the Department 
     of Energy and Chevron U.S.A. Inc. agree in writing not later 
     than 60 days after the date of the enactment of this 
     paragraph that the independent petroleum engineer shall not 
     be liable to either party for any cost or expense incurred or 
     for any loss or damage sustained--
       ``(i) as a result of the manner in which services are 
     performed by the independent petroleum engineer in accordance 
     with its contract with the Department of Energy to support 
     the equity determination process;
       ``(ii) as a result of the failure of the independent 
     petroleum engineer in good faith to

[[Page 13400]]

     perform any service or make any determination or computation, 
     unless caused by its gross negligence; or
       ``(iii) as a result of the reliance by either party on any 
     computation, determination, estimate or evaluation made by 
     the independent petroleum engineer unless caused by the its 
     gross negligence or willful misconduct.
       ``(B) If Chevron U.S.A. Inc. agrees in writing not later 
     than 60 days after the date of the enactment of this 
     paragraph that the independent petroleum engineer shall not 
     be liable to Chevron U.S.A. Inc. or the Department of Energy 
     for any cost or expense incurred or for any loss or damage 
     described in clauses (i) through (iii) of subparagraph (A), 
     the Department of Energy shall agree to the same not later 
     than such date.''.

                          ____________________