[House Report 104-86]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     104-86
_______________________________________________________________________


 
                         USEC PRIVATIZATION ACT

                                _______


 March 23, 1995.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


  Mr. Bliley, from the Committee on Commerce, submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 1216]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Commerce, to whom was referred the bill 
(H.R. 1216) to amend the Atomic Energy Act of 1954 to provide 
for the privatization of the United States Enrichment 
Corporation, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.

                                CONTENTS

                                                                   Page
The amendment....................................................     2
Purpose and summary..............................................     7
Background and need..............................................     7
Hearings.........................................................     9
Committee consideration..........................................     9
Rollcall votes...................................................     9
Committee oversight findings.....................................    10
Committee on Government Reform and Oversight.....................    10
Committee cost estimates.........................................    10
Congressional Budget Office estimates............................    10
Inflationary impact statement....................................    15
Section-by-section analysis and discussion.......................    15
Changes in existing law made by the bill, as reported............    21
Minority and additional views....................................    46

  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE AND REFERENCE.

  (a) Short Title.--This Act may be cited as the ``USEC Privatization 
Act''.
  (b) Reference.--Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Atomic 
Energy Act of 1954 (42 U.S.C. 2011 et seq.).

SEC. 2. PRODUCTION FACILITY.

  Paragraph v. of section 11 (42 U.S.C. 2014 v.) is amended by striking 
``or the construction and operation of a uranium enrichment production 
facility using Atomic Vapor Laser Isotope Separation technology''.

SEC. 3. DEFINITIONS.

  Section 1201 (42 U.S.C. 2297) is amended--
          (1) in paragraph (4), by inserting before the period the 
        following: ``and any successor corporation established through 
        privatization of the Corporation'';
          (2) by redesignating paragraphs (10) through (13) as 
        paragraphs (14) through (17), respectively, and by inserting 
        after paragraph (9) the following new paragraphs:
          ``(10) The term `low-level radioactive waste' has the meaning 
        given such term in section 102(9) of the Low-Level Radioactive 
        Waste Policy Amendments Act of 1985 (42 U.S.C. 2021b(9)).
          ``(11) The term `mixed waste' has the meaning given such term 
        in section 1004(41) of the Solid Waste Disposal Act (42 U.S.C. 
        6903(41)).
          ``(12) The term `privatization' means the transfer of 
        ownership of the Corporation to private investors pursuant to 
        chapter 25.
          ``(13) The term `privatization date' means the date on which 
        100 percent of ownership of the Corporation has been 
        transferred to private investors.'';
          (3) by inserting after paragraph (17) (as redesignated) the 
        following new paragraph:
          ``(18) The term `transition date' means July 1, 1993.''; and
          (4) by redesignating the unredesignated paragraph (14) as 
        paragraph (19).

SEC. 4. EMPLOYEES OF THE CORPORATION.

  (a) Paragraph (2).--Paragraphs (1) and (2) of section 1305(e) (42 
U.S.C. 2297b-4(e)(1)(2)) are amended to read as follows:
          ``(1) In general.--It is the purpose of this subsection to 
        ensure that the privatization of the Corporation shall not 
        result in any adverse effects on the pension benefits of 
        employees at facilities that are operated, directly or under 
        contract, in the performance of the functions vested in the 
        Corporation.
          ``(2) Applicability of existing collective bargaining 
        agreement.--The Corporation shall abide by the terms of the 
        collective bargaining agreement in effect on the privatization 
        date at each individual facility.''.
  (b) Paragraph (4).--Paragraph (4) of section 1305(e) (42 U.S.C. 
2297b-4(e)(4)) is amended--
          (1) by striking ``and detailees'' in the heading;
          (2) by striking the first sentence;
          (3) in the second sentence, by inserting ``from other Federal 
        employment'' after ``transfer to the Corporation''; and
          (4) by striking the last sentence.

SEC. 5. MARKETING AND CONTRACTING AUTHORITY.

  (a) Marketing Authority.--Section 1401(a) (42 U.S.C. 2297c(a)) is 
amended effective on the privatization date (as defined in section 
1201(13) of the Atomic Energy Act of 1954)--
          (1) by amending the subsection heading to read ``Marketing 
        Authority.--''; and
          (2) by striking the first sentence.
  (b) Transfer of Contracts.--Section 1401(b) (42 U.S.C. 2297c(b)) is 
amended--
          (1) in paragraph (2)(B), by adding at the end the following: 
        ``The privatization of the Corporation shall not affect the 
        terms of, or the rights or obligations of the parties to, any 
        such power purchase contract.''; and
          (2) by adding at the end the following:
          ``(3) Effect of transfer.--
                  ``(A) As a result of the transfer pursuant to 
                paragraph (1), all rights, privileges, and benefits 
                under such contracts, agreements, and leases, including 
                the right to amend, modify, extend, revise, or 
                terminate any of such contracts, agreements, or leases 
                were irrevocably assigned to the Corporation for its 
                exclusive benefit.
                  ``(B) Notwithstanding the transfer pursuant to 
                paragraph (1), the United States shall remain obligated 
                to the parties to the contracts, agreements, and leases 
                transferred pursuant to paragraph (1) for the 
                performance of the obligations of the United States 
                thereunder during the term thereof. The Corporation 
                shall reimburse the United States for any amount paid 
                by the United States in respect of such obligations 
                arising after the privatization date to the extent such 
                amount is a legal and valid obligation of the 
                Corporation then due.
                  ``(C) After the privatization date, upon any material 
                amendment, modification, extension, revision, 
                replacement, or termination of any contract, agreement, 
                or lease transferred under paragraph (1), the United 
                States shall be released from further obligation under 
                such contract, agreement, or lease, except that such 
                action shall not release the United States from 
                obligations arising under such contract, agreement, or 
                lease prior to such time.''.
  (c) Pricing.--Section 1402 (42 U.S.C. 2297c-1) is amended to read as 
follows:

``SEC. 1402. PRICING.

  ``The Corporation shall establish prices for its products, materials, 
and services provided to customers on a basis that will allow it to 
attain the normal business objectives of a profitmaking corporation.''.
  (d) Leasing of Gaseous Diffusion Facilities of Department.--Effective 
on the privatization date (as defined in section 1201(13) of the Atomic 
Energy Act of 1954), section 1403 (42 U.S.C. 2297c-2) is amended by 
adding at the end the following:
  ``(h) Low-Level Radioactive Waste and Mixed Waste.--
          ``(1) Responsibility of the department; costs.--
                  ``(A) With respect to low-level radioactive waste and 
                mixed waste generated by the Corporation as a result of 
                the operation of the facilities and related property 
                leased by the Corporation pursuant to subsection (a) or 
                as a result of treatment of such wastes at a location 
                other than the facilities and related property leased 
                by the Corporation pursuant to subsection (a) the 
                Department, at the request of the Corporation, shall--
                          ``(i) accept for treatment or disposal of all 
                        such wastes for which treatment or disposal 
                        technologies and capacities exist, whether 
                        within the Department or elsewhere; and
                          ``(ii) accept for storage (or ultimately 
                        treatment or disposal) all such wastes for 
                        which treatment and disposal technologies or 
                        capacities do not exist, pending development of 
                        such technologies or availability of such 
                        capacities for such wastes.
                  ``(B) All low-level wastes and mixed wastes that the 
                Department accepts for treatment, storage, or disposal 
                pursuant to subparagraph (A) shall, for the purpose of 
                any permits, licenses, authorizations, agreements, or 
                orders involving the Department and other Federal 
                agencies or State or local governments, be deemed to be 
                generated by the Department and the Department shall 
                handle such wastes in accordance with any such permits, 
                licenses, authorizations, agreements, or orders. The 
                Department shall obtain any additional permits, 
                licenses, or authorizations necessary to handle such 
                wastes, shall amend any such agreements or orders as 
                necessary to handle such wastes, and shall handle such 
                wastes in accordance therewith.
                  ``(C) The Corporation shall reimburse the Department 
                for the treatment, storage, or disposal of low-level 
                radioactive waste or mixed waste pursuant to 
                subparagraph (A) in an amount equal to the Department's 
                costs but in no event greater than an amount equal to 
                that which would be charged by commercial, State, 
                regional, or interstate compact entities for treatment, 
                storage, or disposal of such waste.
          ``(2) Agreements with other persons.--The Corporation may 
        also enter into agreements for the treatment, storage, or 
        disposal of low-level radioactive waste and mixed waste 
        generated by the Corporation as a result of the operation of 
        the facilities and related property leased by the Corporation 
        pursuant to subsection (a) with any person other than the 
        Department that is authorized by applicable laws and 
        regulations to treat, store, or dispose of such wastes.''.
  (e) Liabilities.--
          (1) Subsection (a) of section 1406 (42 U.S.C. 2297c-5(a)) is 
        amended--
                  (A) by inserting ``and Privatization'' after 
                ``Transition'' in the heading; and
                  (B) by adding at the end the following: ``As of the 
                privatization date, all liabilities attributable to the 
                operation of the Corporation from the transition date 
                to the privatization date shall be direct liabilities 
                of the United States.''.
          (2) Subsection (b) of section 1406 (42 U.S.C. 2297c-5(b)) is 
        amended--
                  (A) by inserting ``and Privatization'' after 
                ``Transition'' in the heading; and
                  (B) by adding at the end the following: ``As of the 
                privatization date, any judgment entered against the 
                Corporation imposing liability arising out of the 
                operation of the Corporation from the transition date 
                to the privatization date shall be considered a 
                judgment against the United States.''.
          (3) Subsection (d) of section 1406 (42 U.S.C. 2297c-5(d)) is 
        amended--
                  (A) by inserting ``and Privatization'' after 
                ``Transition'' in the heading; and
                  (B) by striking ``the transition date'' and inserting 
                ``the privatization date (or, in the event the 
                privatization date does not occur, the transition 
                date)''.
  (f) Transfer of Uranium.--Title II (42 U.S.C. 2297 et seq.) is 
amended by redesignating section 1408 as section 1409 and by inserting 
after section 1407 the following:

``SEC. 1408. TRANSFER OF URANIUM.

  ``The Secretary may, before the privatization date, transfer to the 
Corporation without charge raw uranium, low-enriched uranium, and 
highly enriched uranium.''.

SEC. 6. PRIVATIZATION OF THE CORPORATION.

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

``SEC. 1503. ESTABLISHMENT OF PRIVATE CORPORATION.

  ``(a) Establishment.--
          ``(1) In general.--In order to facilitate privatization, the 
        Corporation may provide for the establishment of a private 
        corporation organized under the laws of any of the several 
        States. Such corporation shall have among its purposes the 
        following:
                  ``(A) To help maintain a reliable and economical 
                domestic source of uranium enrichment services.
                  ``(B) To undertake any and all activities as provided 
                in its corporate charter.
          ``(2) Authorities.--The corporation established pursuant to 
        paragraph (1) shall be authorized to--
                  ``(A) enrich uranium, provide for uranium to be 
                enriched by others, or acquire enriched uranium 
                (including low-enriched uranium derived from highly 
                enriched uranium);
                  ``(B) conduct, or provide for conducting, those 
                research and development activities related to uranium 
                enrichment and related processes and activities the 
                corporation considers necessary or advisable to 
                maintain itself as a commercial enterprise operating on 
                a profitable and efficient basis;
                  ``(C) enter into transactions regarding uranium, 
                enriched uranium, or depleted uranium with--
                          ``(i) persons licensed under section 53, 63, 
                        103, or 104 in accordance with the licenses 
                        held by those persons;
                          ``(ii) persons in accordance with, and within 
                        the period of, an agreement for cooperation 
                        arranged under section 123; or
                          ``(iii) persons otherwise authorized by law 
                        to enter into such transactions;
                  ``(D) enter into contracts with persons licensed 
                under section 53, 63, 103, or 104, for as long as the 
                corporation considers necessary or desirable, to 
                provide uranium or uranium enrichment and related 
                services;
                  ``(E) enter into contracts to provide uranium or 
                uranium enrichment and related services in accordance 
                with, and within the period of, an agreement for 
                cooperation arranged under section 123 or as otherwise 
                authorized by law; and
                  ``(F) take any and all such other actions as are 
                permitted by the law of the jurisdiction of 
                incorporation of the corporation.
          ``(3) Transfer of assets.--For purposes of implementing the 
        privatization, the Corporation may transfer some or all of its 
        assets and obligations to the corporation established pursuant 
        to this section, including--
                  ``(A) all of the Corporation's assets, including all 
                contracts, agreements, and leases, including all 
                uranium enrichment contracts and power purchase 
                contracts;
                  ``(B) all funds in accounts of the Corporation held 
                by the Treasury or on deposit with any bank or other 
                financial institution;
                  ``(C) all of the Corporation's rights, duties, and 
                obligations, accruing subsequent to the privatization 
                date, under the power purchase contracts covered by 
                section 1401(b)(2)(B); and
                  ``(D) all of the Corporation's rights, duties, and 
                obligations, accruing subsequent to the privatization 
                date, under the lease agreement between the Department 
                and the Corporation executed by the Department and the 
                Corporation pursuant to section 1403.
          ``(4) Merger or consolidation.--For purposes of implementing 
        the privatization, the Corporation may merge or consolidate 
        with the corporation established pursuant to subsection (a)(1) 
        if such action is contemplated by the plan for privatization 
        approved by the President under section 1502(b). The Board 
        shall have exclusive authority to approve such merger or 
        consolidation and to take all further actions necessary to 
        consummate such merger or consolidation, and no action by or in 
        respect of shareholders shall be required. The merger or 
        consolidation shall be effected in accordance with, and have 
        the effects of a merger or consolidation under, the laws of the 
        jurisdiction of incorporation of the surviving corporation, and 
        all rights and benefits provided under this title to the 
        Corporation shall apply to the surviving corporation as if it 
        were the Corporation.
          ``(5) Tax treatment of privatization.--
                  ``(A) Transfer of assets or merger.--No income, gain, 
                or loss shall be recognized by any person by reason of 
                the transfer of the Corporation's assets to, or the 
                Corporation's merger with, the corporation established 
                pursuant to subsection (a)(1) in connection with the 
                privatization.
                  ``(B) Cancellation of debt and common stock.--No 
                income, gain, or loss shall be recognized by any person 
                by reason of any cancellation of any obligation or 
                common stock of the Corporation in connection with the 
                privatization.
  ``(b) OSHA Requirements.--For purposes of the regulation of 
radiological and nonradiological hazards under the Occupational Safety 
and Health Act of 1970, the corporation established pursuant to 
subsection (a)(1) shall be treated in the same manner as other 
employers licensed by the Nuclear Regulatory Commission. Any 
interagency agreement entered into between the Nuclear Regulatory 
Commission and the Occupational Safety and Health Administration 
governing the scope of their respective regulatory authorities shall 
apply to the corporation as if the corporation were a Nuclear 
Regulatory Commission licensee.
  ``(c) Legal Status of Private Corporation.--
          ``(1) Not federal agency.--The corporation established 
        pursuant to subsection (a)(1) shall not be an agency, 
        instrumentality, or establishment of the United States 
        Government and shall not be a Government corporation or 
        Government-controlled corporation.
          ``(2) No recourse against united states.--Obligations of the 
        corporation established pursuant to subsection (a)(1) shall not 
        be obligations of, or guaranteed as to principal or interest 
        by, the Corporation or the United States, and the obligations 
        shall so plainly state.
          ``(3) No claims court jurisdiction.--No action under section 
        1491 of title 28, United States Code, shall be allowable 
        against the United States based on the actions of the 
        corporation established pursuant to subsection (a)(1).
  ``(d) Board of Director's Election After Public Offering.--In the 
event that the privatization is implemented by means of a public 
offering, an election of the members of the board of directors of the 
Corporation by the shareholders shall be conducted before the end of 
the 1-year period beginning the date shares are first offered to the 
public pursuant to such public offering.
  ``(e) Adequate Proceeds.--The Secretary of Energy shall not allow the 
privatization of the Corporation unless before the sale date the 
Secretary determines that the estimated sum of the gross proceeds from 
the sale of the Corporation will be an adequate amount.''.
  (b) Ownership Limitations.--Chapter 25 (as amended by subsection (a)) 
is amended by adding at the end the following new section:

``SEC. 1504. OWNERSHIP LIMITATIONS.

  ``(a) Securities Limitation.--In the event that the privatization is 
implemented by means of a public offering, during a period of 3 years 
beginning on the privatization date, no person, directly or indirectly, 
may acquire or hold securities representing more than 10 percent of the 
total votes of all outstanding voting securities of the Corporation.
  ``(b) Application.--Subsection (a) shall not apply--
          ``(1) to any employee stock ownership plan of the 
        Corporation,
          ``(2) to underwriting syndicates holding shares for resale, 
        or
          ``(3) in the case of shares beneficially held for others, to 
        commercial banks, broker-dealers, clearing corporations, or 
        other nominees.
  ``(c) No director, officer, or employee of the Corporation may 
acquire any securities, or any right to acquire securities, of the 
Corporation--
          ``(1) in the public offering of securities of the Corporation 
        in the implementation of the privatization,
          ``(2) pursuant to any agreement, arrangement, or 
        understanding entered into before the privatization date, or
          ``(3) before the election of directors of the Corporation 
        under section 1503(d) on any terms more favorable than those 
        offered to the general public.''.
  (c) Exemption From Liability.--Chapter 25 (as amended by subsection 
(b)) is amended by adding at the end the following new section:

``SEC. 1505. EXEMPTION FROM LIABILITY.

  ``(a) In General.--No director, officer, employee, or agent of the 
Corporation shall be liable, for money damages or otherwise, to any 
party if, with respect to the subject matter of the action, suit, or 
proceeding, such person was fulfilling a duty, in connection with any 
action taken in connection with the privatization, which such person in 
good faith reasonably believed to be required by law or vested in such 
person.
  ``(b) Exception.--The privatization shall be subject to the 
Securities Act of 1933 and the Securities Exchange Act of 1934. The 
exemption set forth in subsection (a) shall not apply to claims arising 
under such Acts or under the Constitution or laws of any State, 
territory, or possession of the United States relating to transactions 
in securities, which claims are in connection with a public offering 
implementing the privatization.''.
  (d) Resolution of Certain Issues.--Chapter 25 (as amended by 
subsection (c)) is amended by adding at the end the following new 
section:

``SEC. 1506. RESOLUTION OF CERTAIN ISSUES.

  ``(a) Corporation Actions.--Notwithstanding any provision of any 
agreement to which the Corporation is a party, the Corporation shall 
not be considered to be in breach, default, or violation of any such 
agreement because of any provision of this chapter or any action the 
Corporation is required to take under this chapter.
  ``(b) Right To Sue Withdrawn.--The United States hereby withdraws any 
stated or implied consent for the United States, or any agent or 
officer of the United States, to be sued by any person for any legal, 
equitable, or other relief with respect to any claim arising out of, or 
resulting from, acts or omissions under this chapter.''.
  (e) Application of Privatization Proceeds.--Chapter 25 (as amended by 
subsection (d)) is amended by adding at the end the following new 
section:

``SEC. 1507. APPLICATION OF PRIVATIZATION PROCEEDS.

  ``The proceeds from the privatization shall be included in the budget 
baseline required by the Balanced Budget and Emergency Deficit Control 
Act of 1985 and shall be counted as an offset to direct spending for 
purposes of section 252 of such Act, notwithstanding section 257(e) of 
such Act.''.
  (f) Conforming Amendment.--The table of contents for chapter 25 is 
amended by inserting after the item for section 1502 the following:

``Sec. 1503. Establishment of Private Corporation.
``Sec. 1504. Ownership Limitations.
``Sec. 1505. Exemption from Liability.
``Sec. 1506. Resolution of Certain Issues.
``Sec. 1507. Application of Privatization Proceeds.''.

  (g) Section 193 (42 U.S.C. 2243) is amended by adding at the end the 
following:
  ``(f) Limitation.--If the privatization of the United States 
Enrichment Corporation results in the Corporation being--
          ``(1) owned, controlled, or dominated by a foreign 
        corporation or a foreign government, or
          ``(2) otherwise inimical to the common defense or security of 
        the United States,
any license held by the Corporation under sections 53 and 63 shall be 
terminated.''.
  (h) Period for Congressional Review.--Section 1502(d) (42 U.S.C. 
2297d-1(d)) is amended by striking ``less than 60 days after 
notification of the Congress'' and inserting ``less than 60 days after 
the date of the report to Congress by the Comptroller General under 
subsection (c)''.

SEC. 7. PERIODIC CERTIFICATION OF COMPLIANCE.

  Section 1701(c)(2) (42 U.S.C. 2297f(c)(2)) is amended by striking 
``Annual application for certificate of compliance.--The Corporation 
shall apply at least annually to the Nuclear Regulatory Commission for 
a certificate of compliance under paragraph (1).'' and inserting 
``Periodic application for certificate of compliance.--The Corporation 
shall apply to the Nuclear Regulatory Commission for a certificate of 
compliance under paragraph (1) periodically, as determined by the 
Nuclear Regulatory Commission, but not less than every 5 years.''.

SEC. 8. LICENSING OF OTHER TECHNOLOGIES.

  Subsection (a) of section 1702 (42 U.S.C. 2297f-1(a)) is amended by 
striking ``other than'' and inserting ``including''.

SEC. 9. CONFORMING AMENDMENTS.

  (a) Repeals in Atomic Energy Act of 1954 as of the Privatization 
Date.--
          (1) Repeals.--As of the privatization date (as defined in 
        section 1201(13) of the Atomic Energy Act of 1954), the 
        following sections (as in effect on such privatization date) of 
        the Atomic Energy Act of 1954 are repealed:
                  (A) Section 1202.
                  (B) Sections 1301 through 1304.
                  (C) Sections 1306 through 1316.
                  (D) Sections 1404 and 1405.
                  (E) Section 1601.
                  (F) Sections 1603 through 1607.
          (2) Conforming amendment.--The table of contents of such Act 
        is amended by repealing the items referring to sections 
        repealed by paragraph (1).
  (b) Statutory Modifications.--As of such privatization date, the 
following shall take effect:
          (1) For purposes of title I of the Atomic Energy Act of 1954, 
        all references in such Act to the ``United States Enrichment 
        Corporation'' shall be deemed to be references to the 
        corporation established pursuant to section 1503 of the Atomic 
        Energy Act of 1954 (as added by section 6(a)).
          (2) Section 1018(1) of the Energy Policy Act of 1992 (42 
        U.S.C. 2296b-7(1)) is amended by striking ``the United States'' 
        and all that follows through the period and inserting ``the 
        corporation referred to in section 1201(4) of the Atomic Energy 
        Act of 1954.''.
          (3) Section 9101(3) of title 31, United States Code, is 
        amended by striking subparagraph (N), as added by section 
        902(b) of Public Law 102-486.
  (c) Revision of Section 1305.--As of such privatization date, section 
1305 of the Atomic Energy Act of 1954 (42 U.S.C 2297b-4) is amended--
          (1) by repealing subsections (a), (b), (c), and (d), and
          (2) in subsection (e)--
                  (A) by striking the subsection designation and 
                heading,
                  (B) by redesignating paragraphs (1) and (2) (as added 
                by section 4(a)) as subsections (a)  and  (b)  and  by 
                moving the margins 2-ems to the left,
                  (C) by striking paragraph (3), and
                  (D) by redesignating paragraph (4) (as amended by 
                section 4(b)) as subsection (c), and by moving the 
                margins 2-ems to the left.

                          Purpose and Summary

    The purpose of H.R. 1216, the ``USEC Privatization Act.'' 
is to facilitate the privatization of the United States 
Enrichment Corporation (USEC). The legislation contains 
provisions to increase the return to the taxpayers from the 
sale of the Corporation by enhancing the value of the 
Corporation to potential purchasers or shareholders, and by 
eliminating burdensome statutory requirements for the 
privatized corporation.

                  Background and Need for Legislation

    The United States Enrichment Corporation (USEC) is a 
government corporation established by Title IX of the Energy 
Policy Act of 1992 (EPAct). USEC produces and markets uranium 
enrichment services to more than 60 utilities which own and 
operate commercial nuclear power plants in the United States 
and 11 foreign countries (90 percent of the domestic market and 
40 percent of the world market). It operates two enrichment 
facilities located in Paducah, Kentucky and Portsmouth, Ohio 
with total employment of approximately 4,500. The Corporation 
has annual revenues of approximately $1.5 billion.
    Prior to the creation of USEC, the Department of Energy's 
uranium enrichment program supplied enriched uranium for use at 
commercial nuclear power plants. At that time, uranium 
enrichment was the only part of the nuclear fuel cycle related 
to production or use that was not a private sector 
responsibility. The U.S. has a near-monopoly on the world 
uranium enrichment market until the 1970s, at which time 
competition from foreign competitors began to significantly 
erode U.S. market share. Today, less than half of the world 
market is served by U.S. enrichment services. In passing EPAct, 
Congress recognized the dangers this situation presented for 
maintaining a viable U.S. presence in the uranium enrichment 
market and took the first step toward privatization by creating 
the quasi-governmental USEC. H.R. 1216 establishes the 
framework for full privatization and will provide the 
Corporation with the additional operating flexibility needed to 
ensure a future for the domestic uranium and unranium 
enrichment industries.
    EPAct directs the Corporation to submit a strategic plan 
for privatization to Congress and the President by July 1, 
1995. The plan must consider alternative means of transferring 
ownership of USEC to the private sector and contain the 
Corporation's recommendation as to its preferred method of 
privatization. Under UPAct, the Corporation may not implement 
the privatization plan without approval of the President, nor 
less than 60 days after notifying Congress of its intent to 
implement the plan.
    In creating USEC, the Congress laid out three principles 
for the Corporation to follow: first, that the Corporation must 
be treated like a private corporation to the fullest extent 
practicable; second, that the Corporation must be a profit 
maximizer; third, that the Corporation must pay its own way. It 
is intended that the full privatization of the Corporation will 
continue to follow these principles, and allow for the creation 
of a private entity which will provide a maximum return for the 
taxpayer's investment in the Corporation and which will be a 
strong and economically viable force in the market. The 
Corporation must not be burdened with additional layers of 
bureaucracy not required of other private business entities. 
The Corporation must also be allowed to maximize its profits in 
the private sector, making itself an attractive investment 
opportunity and paving the way for a healthy and vigorous life 
in American business. A key component of this effort will be 
additional research on and development of uranium enrichment 
technologies, including the Atomic Vapor Laser Isotope 
Separation (AVLIS) technology. This technology was transferred 
to the Corporation in EPAct, and it is expected that further 
development of AVLIS will be accomplished without the benefit 
of federal subsidization.
    The Administration indicated support for the privatization 
of the Corporation in its Fiscal Year 1996 budget request to 
Congress. It estimates that proceeds from the sale will return 
$1.5 to $1.9 billion to the U.S. treasury. Privatization of the 
Corporation will ensure the future of the domestic uranium and 
uranium enrichment industries and will provide significant 
returns to the Federal treasury, both from the proceeds of the 
initial sale and tax revenues and royalty payments generated 
from the privatized corporation.

                                Hearings

    On February 24, 1995, the Subcommittee on Energy and Power 
held a hearing on privatization of the United States Enrichment 
Corporation. Witnesses included: Mr. William J. Timbers, Jr., 
President, United States Enrichment Corporation; Mr. Robert 
Bernero, Director, Office of Nuclear Material, Safety and 
Safeguards, United States Nuclear Regulatory Commission; Mr. 
Victor Rezendes, Director, Energy and Science Issues, United 
States General Accounting Office; Mr. James Derryberry, 
Managing Director, J.P. Morgan and Associates; and Mr. William 
Magavern, Director, Critical Mass Energy Project, Public 
Citizen.

                        Committee Consideration

    On March 15, 1995, the Committee met in open session to 
consider H.R. 1216. The Committee ordered reported the bill 
H.R. 1216, with amendments, by a voice vote, a quorum being 
present.

                             Rollcall Votes

    Pursuant to clause 2(l)(2)(B) of rule XI of the Rules of 
the House of Representatives, following are listed the recorded 
votes on the motion to report H.R. 1216 and on amendments 
offered to the measure, including the names of those Members 
voting for and against.

                 Committee on Commerce--104th Congress

                          rollcall vote no. 36

    Bill: H.R. 1216, USEC Privatization Act.
    Amentment: Amendment by Mr. Brown re: direct the proceeds 
from the sale of U.S. Enrichment Corporation be used for 
deficit reduction.
    Disposition: Not agreed to, by a roll call vote of 14 ayes 
to 20 nays.

----------------------------------------------------------------------------------------------------------------
     Representative          Aye       Nay     Present        Representative          Aye       Nay     Present 
----------------------------------------------------------------------------------------------------------------
Mr. Bliley..............  ........        X   .........  Mr. Dingell.............  ........  ........  .........
Mr. Moorhead............  ........        X   .........  Mr. Waxman..............        X   ........  .........
Mr. Fields..............  ........  ........  .........  Mr. Markey..............        X   ........  .........
Mr. Oxley...............  ........        X   .........  Mr. Tauzin..............        X   ........  .........
Mr. Bilirakis...........  ........        X   .........  Mr. Wyden...............  ........  ........  .........
Mr. Schaefer............  ........        X   .........  Mr. Hall................  ........  ........  .........
Mr. Barton..............  ........  ........  .........  Mr. Byrant..............  ........  ........  .........
Mr. Hastert.............  ........  ........  .........  Mr. Boucher.............        X   ........  .........
Mr. Upton...............  ........        X   .........  Mr. Manton..............        X   ........  .........
Mr. Stearns.............  ........  ........  .........  Mr. Towns...............        X   ........  .........
Mr. Paxon...............  ........        X   .........  Mr. Studds..............  ........  ........  .........
Mr. Gillmor.............  ........  ........  .........  Mr. Pallone.............  ........        X   .........
Mr. Klug................  ........        X   .........  Mr. Brown...............        X   ........  .........
Mr. Franks..............  ........  ........  .........  Mrs. Lincoln............  ........  ........  .........
Mr. Greenwood...........  ........        X   .........  Mr. Gordon..............        X   ........  .........
Mr. Crapo...............  ........        X   .........  Ms. Furse...............        X   ........  .........
Mr. Cox.................  ........        X   .........  Mr. Deutsch.............        X   ........  .........
Mr. Burr................  ........        X   .........  Mr. Rush................        X   ........  .........
Mr. Bilbray.............  ........        X   .........  Ms. Eshoo...............        X   ........  .........
Mr. Whitfield...........  ........        X   .........  Mr. Klink...............        X   ........  .........
Mr. Ganske..............  ........        X   .........  Mr. Stupak..............        X   ........  .........
Mr. Frisa...............  ........        X   .........  ........................  ........  ........  .........
Mr. Norwood.............  ........        X   .........  ........................  ........  ........  .........
Mr. White...............  ........        X   .........  ........................  ........  ........  .........
Mr. Coburn..............  ........        X   .........  ........................  ........  ........  .........
----------------------------------------------------------------------------------------------------------------

                      Committee Oversight Findings

    Pursuant to clause 2(l)(3)(A) of rule XI of the Rules of 
the House of Representatives, the Subcommittee on Energy and 
Power conducted an oversight hearing and made findings that are 
reflected in this report.

              Committee on Government Reform and Oversight

    Pursuant to clause 2(l)(3)(D) of rule XI of the Rules of 
the House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Reform and Oversight.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 403 of the Congressional Budget Act of1974.
    However, the Committee notes that the CBO estimate of the 
net value of uranium materials proposed to be transferred to 
the Corporation by the Department of Energy is appraised 
conservatively at $100 million. While the Committee does not 
dispute the CBO's analysis, it is important to consider other 
estimates in assessing the value of these materials. For 
example, the Department of Energy's estimate of the value of 
its uranium materials in the Administration's proposed Fiscal 
Year 1996 budget is $400 million. The Committee understands 
that private sector estimates of the value of these materials 
exceed even the Department's assessment. It is important to 
recognize that receipts from the sale of these uranium 
materials may far exceed the CBO's expectations.

                  Congressional Budget Office Estimate

    Pursuant to clause 2(l)(3)(C) of rule XI of the Rules of 
the House of Representatives, following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
403 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 22, 1995.
Hon. Thomas J. Bliley, Jr.,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1216, the USEC 
Privatization Act.
    Enactment of H.R. 1216 would affect direct spending; 
therefore, pay-as-you-go procedures would apply to the bill.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                              James L. Blum
                                             (For June E. O'Neill).
    Enclosure.

               Congressional Budget Office Cost Estimate

    1. Bill number: H.R. 1216.
    2. Bill title: USEC Privatization Act.
    3. Bill status: As ordered reported by the House Committee 
on Commerce on March 15, 1995.
    4. Bill purpose: H.R. 1216 would convert the United States 
Enrichment Corporation (USEC) from federal to private 
ownership. USEC is a government corporation, created by the 
Energy Policy Act of 1992 (Public Law 102-486), to provide 
uranium enrichment services to operators of nuclear 
powerplants. In preparation for making this enterprise a 
private entity, the corporation was created from the uranium 
enrichment program formerly run by the Department of Energy 
(DOE). The Energy Policy Act of 1992 envisions privatization of 
USEC, but several issues must be resolved before the government 
can complete a transfer from federal to private ownership. H.R. 
1216 addresses several such issues, as outlined below.
    The bill would clarify the roles of USEC and DOE with 
respect to the treatment of low-level radioactive waste and 
mixed waste generated by the corporation, the transfer of 
assets and liabilities from the government to a corporation 
that is privately owned, and the general procedure for 
establishing such a private corporation. H.R. 1216 also would 
authorize DOE to transfer to the corporation raw uranium, low-
enriched uranium, and highly enriched uranium. In addition, the 
bill would clarify changes in USEC's legal status as it 
transfers from public to private ownership. It includes 
provisions governing how a private USEC would be regulated 
under the Occupational Safety and Health Act of 1970, how a 
private USEC would be treated under provisions of the Atomic 
Energy Act of 1954, and what limitations would apply to the 
foreign ownership of USEC stock.
    Finally, the bill would direct that proceeds from the sale 
of the corporation be treated as an offset to direct spending 
for the purpose of pay-as-you-go calculations under the 
Balanced Budget and Emergency Deficit Control Act of 1985 
(BBEDCA). Receipts from nonroutine asset sales, such as the 
sale of USEC, are not counted as an offset to direct spending 
under current law. (The prohibition against ``counting'' the 
receipts from nonroutine asset sales is contained in the 
Congressional Budget and Impoundment Control Act of 1974, as 
amended by BBEDCA).
    5. Estimated cost to the Federal Government: While it is 
possible the USEC could become a private corporation under 
current law, such action does not appear likely. Hence, CBO 
assumes that the corporation would remain as a government-owned 
entity under current law and that H.R. 1216 would be sufficient 
to resolve issues associated with the proposed privatization. 
Under H.R. 1216, it is possible that the USEC would not be 
transferred to private ownership, but we have no reason to 
assume that outcome. As a result, CBO estimates that enacting 
H.R. 1216 would lead to a sale of USEC over the 1996-1997 
period, and that completing that sale would have the budgetary 
impact shown in the following table:

------------------------------------------------------------------------
                          1996      1997      1998      1999      2000  
------------------------------------------------------------------------
Federal Spending Under                                                  
 Current Law:                                                           
    Estimted Budget                                                     
     Authority........         0         0         0         0         0
    Estimated Outlays.      -183       -88        10        88       159
Changes Resulting from                                                  
 H.R. 1216:                                                             
    Direct Spending:                                                    
        Estimted                                                        
         Budget                                                         
         Authority....         0         0         0         0         0
        Estimated                                                       
         Outlays......       150         8       -10       -88      -159
    Proceeds of Asset                                                   
     Sale:                                                              
        Estimted                                                        
         Budget                                                         
         Authority....      -500    -1,100         0         0         0
        Estimated                                                       
         Outlays......      -500    -1,100         0         0         0
Federal Spending Under                                                  
 H.R. 1216:                                                             
    Estimted Budget                                                     
     Authority........      -500    -1,100         0         0         0
    Estimated Outlays.      -533    -1,180         0         0         0
------------------------------------------------------------------------

    The budgetary impact of this bill falls within budget 
function 270.
    Based on information provided by USEC, DOE, the Office of 
Management and Budget (OMB), and the Department of the 
Treasury, CBO estimates that enacting H.R. 1216 would result in 
a sale of the corporation over fiscal years 1996 and 1997 for 
net proceeds of about $1.6 billion. These estimated proceeds 
would constitute receipts of a nonroutine asset sale, as 
defined by section 250 of the Congressional Budget and 
Impoundment Control Act of 1974. CBO also estimates, based in 
information from the Administration, that H.R. 1216 would 
result in increased direct spending of about $150 million in 
1996 and $8 million in 1997 to prepare for and complete the 
sale of USEC. These costs would cover necessary equipment and 
facility upgrades, as well as transaction fees for conducting 
the sale.
    H.R. 1216 would reduce direct spending over the 1998-2000 
period because once USEC is sold, its net spending estimated 
under current law would no longer appear in the federal budget. 
As shown in the table, CBO estimates that these savings would 
total about $260 million for 1998 through 2000.
    The bill would require DOE to handle treatment, storage, 
and disposal of low-level radioactive waste and mixed waste 
from USEC operations even after USEC becomes private. But such 
activities would be a federal function in any event if the 
corporation were to remain government-owned. Moreover, H.R. 
1216 would require that USEC reimburse DOE for costs associated 
with handling USEC wastes just as it does now. Hence, CBO 
estimates that this provision would not result in any 
significant impact on appropriations to DOE for handling low-
level radioactive and mixed wastes.
    Both the amount and the timing of the asset sale receipts 
are uncertain. Potential purchasers will determine the market 
value of USEC. That value may depend on how the privatization 
is implemented--through a negotiated sale, a stock sale, or a 
public offering. The market value also will depend on how 
potential purchasers evaluate USEC's existing contracts for 
providing enrichment services and the likely opportunities for 
augmenting that contract base with new service contracts. 
Finally, USEC's sale price also will depend on how much value 
potential purchasers assign to any uranium materials 
transferred to the corporation from DOE (as authorized in the 
bill).
    Taken together, CBO estimates that the above factors place 
the likely net sale price in a range from $1.3 billion to $1.9 
billion. By net sale price, we mean the net proceeds obtained 
by the government after any transfer of USEC cash balances held 
by the Treasury. The corporation could be sold with varying 
amounts of cash transferred as part of the sale agreement. 
Gross proceeds could include the right to significant amounts 
of USEC's cash balance--currently more than $800 million; but 
the net sale price would reflect any such federal outlays that 
occur as part of the ownership transfer.
    On the one hand, if all potential purchasers are somewhat 
pessimistic about the value of USEC's current contracts and 
prospects for new profitable contracts, and if little net value 
is assigned to the transfer of DOE uranium materials, the sale 
price could be $300 million less than our best estimate of $1.6 
billion. The low estimate of $1.3 billion in net proceeds 
assumes that the purchaser would be willing to pay very little 
beyond USEC's cash value at the time of sale. (CBO estimates 
that the Treasury cash balance will total at least $1 billion 
by the end of fiscal year 1996).
    On the other hand, selling USEC could yield nearly $2 
billion in net proceeds if at least one bidder for the 
corporation either has a more optimistic view of the uranium 
enrichment market or assigns a relatively high value to uranium 
materials transfered to USEC by DOE. In particular, DOE has 
proposed transferring a combination of raw uranium and highly 
enriched uranium that it estimates would be worth at least $400 
million to the purchaser of USEC. Because the market for 
natural uranium is already depressed by weak demand relative to 
potential supplies, and because there could be both technical 
and cost problems associated with processing highly enriched 
uranium, there is some doubt as to whether USEC's market value 
would increase by as much as $400 million with the proposed 
transfer of materials. CBO's estimate of net sale receipts 
totaling $1.6 billion assumes $100 million of increased value 
associated with such a transfer from DOE.
    With regard to the timing of the sale, our estimate 
reflects the assumption that the Administration would begin 
sale proceedings in 1996, but that completion of the sale would 
occur in 1997. (This assumption mirrors the timing assumption 
underlying the President's recent budget proposal). It may be 
possible to complete privatization of USEC in 1996, and the 
corporation is likely to attempt to do so. Completion of the 
sale, however, depends on actions by the Department of the 
Treasury and final approval by the President, as well as 
finding a purchaser that can complete the transactions. CBO 
believes that these factors could easily delay completion of 
the sale until sometime in fiscal year 1997.
    Finally, it is possible that USEC privatization would not 
occur at all, particularly if the government determines that no 
sale can result in sufficient revenues to meet the criteria 
established in the Energy Policy Act of 1992 and in H.R. 1216. 
The bill requires a determination by the Secretary of Energy 
that a sale conducted through a public offering would result in 
the government obtaining ``an adequate amount'' of proceeds. In 
addition, the Energy Policy Act of 1992 requires that USEC 
prepare a privatization plan and notify the Congress of its 
intent to implement the plan. Within 30 days of such 
notification, the General Accounting Office (GAO) is required 
to report on whether the proceeds form USEC privatization are 
likely to represent at least the net present value of the 
corporation. The DOE and GAO evaluations could stop a proposed 
sale of USEC, but we have no reason to expect that outcome at 
this time.
    6. Pay-as-you-go considerations: Section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 sets 
up pay-as-you-go procedure for legislation affecting direct 
spending or receipts through 1998. CBO estimates that enactment 
of H.R. 1216 would affect direct spending; therefore, pay-as-
you-go procedures would apply to the bill. Preparing for and 
completing the sale is likely to increase federal costs in the 
short term, primarily in fiscal year 1996. Based on information 
provided by the administration, CBO estimates that such costs 
will increase outlays by $150 million in 1996 and $8 million in 
1997.
    Once USEC is sold, its net spending would no longer be 
included in the federal budget. Since CBO currently projects 
positive net spending of $10 million for fiscal year 1998, 
completing the sale in fiscal year 1997 would reduce outlays 
relative to current law by $10 million in 1998. (CBO estimates 
additional reductions in direct spending for fiscal years 1999 
and 2000, but those years are behind the current window for 
pay-as-you-go impacts.)
    Because the bill includes language that would require the 
use of the sale proceeds for USEC as an offset to direct 
spending for pay-as-you-go purposes, the following table shows 
an estimated pay-as-you-go impact that includes receipts of 
$500 million in 1996 and $1,100 million in 1997. Under current 
law, and under the 1995 budget resolution, the receipts from 
nonroutine assets sales would not count as an offset to direct 
spending.

------------------------------------------------------------------------
                                              1996      1997      1998  
------------------------------------------------------------------------
Change in outlays.........................      -350    -1,092        10
Change in receipts........................     (\1\)     (\1\)    (\1\) 
------------------------------------------------------------------------
\1\ Not applicable.                                                     

    Estimated cost to State and local governments: None.
    8. Estimate comparison: In the President's budget for 
fiscal year 1996, the Administration proposes the sale of USEC 
and estimates net proceeds of $1.9 billion over 1996-1997, as 
compared to CBO's estimate of $1.6 billion. The difference in 
these estimates is attributable to the Administration's higher 
estimate of the value of uranium materials proposed for 
transfer from DOE to USEC prior to sale.
    9. Previous CBO estimate: None.
    10. Estimate prepared by: Pete Fontaine.
    11. Estimate approved by: Robert A. Sunshine (for Paul N. 
Van de Water, Assistant Director for Budget Analysis).

                     Inflationary Impact Statement

    Pursuant to clause 2(1)(4) of rule XI of the Rules of the 
House of Representatives, the Committee finds that the bill 
would have no inflationary impact.

             Section-by-Section Analysis of the Legislation

                  section 1. short title and reference

    This section provides that the Act may be cited as the 
``USEC Privatization Act.'' It also provides that, except as 
otherwise expressly provided, references to sections in the Act 
shall be considered to be made to sections or other provisions 
of the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).

                     section 2. production facility

    This section amends the definition of the term ``production 
facility'' set forth in section 11 of title I of the Atomic 
Energy Act (AEA) to exclude the construction and operation of a 
uranium enrichment facility using Atomic Vapor Laser Isotope 
Separation (AVLIS) technology from the definition of production 
facility. As a result, any uranium enrichment facility using 
AVLIS technology would be eligible for one-step licensing under 
the materials licensing provisions of sections 53 and 63 of the 
AEA.

                         section 3. definitions

    This section amends certain definitions contained in, and 
adds certain definitions to, section 1201 of the AEA. These 
changes are described below.
    The term ``Corporation'' is amended to include any 
successor corporation established through privatization of the 
Corporation.
    The term ``low-level radioactive waste'' is defined for 
purposes of the AEA by reference to the term's definition under 
the Low-Level Radioactive Waste Policy Amendments Act of 1985 
(42 U.S.C. 2021b(9)).
    The term ``mixed waste'' is defined for purposes of the AEA 
by reference to the term's definition under the Solid Waste 
Disposal Act (42 U.S.C. 6903 (41)).
    The term ``privatization'' is defined as the transfer of 
ownership of the Corporation to private investors pursuant to 
chapter 25 of the AEA.
    The term ``privatization date'' is defined as the date on 
which 100 percent of ownership of the Corporation has been 
transferred to private investors.
    The term ``transition date'' is defined as July 1, 1993.

                section 4. employees of the Corporation

    This section provides certain protections for the employees 
of the privatized corporation. Section 4(a) provides that the 
privatization shall not result in any adverse effects on the 
pension benefits of employees at facilities that are operated, 
directly or under contract, in the performance of the functions 
vested in the Corporation. Currently, these pension benefits 
are held by a third party, typically the private employment 
contractor at the plant site. As such, the benefits already 
receive the protection and benefits of the Pension Benefit 
Guaranty Corporation should a default of the pension plan 
occur. This section is intended to prevent the privatized 
corporation from taking actions which would result in any 
adverse affects to these pension benefits. Section 4(a) also 
provides that the Corporation shall abide by the terms of any 
collective bargaining agreement that is in effect on the 
privatization date at each facility.
    Section 4(b) deletes provision relating to department 
detailees. Such provisions are no longer necessary in that 
there are no Department of Energy employees currently detailed 
to the Corporation. This section also clarifies current law 
which provides that employees of the Corporation who 
transferred to the Corporation from other Federal employment 
have the option to have any accrued retirement benefits 
transferred to a retirement system established by the 
Corporation or to retain their coverage under either the Civil 
Service Retirement System or the Federal Employees' Retirement 
System, as applicable, in lieu of coverage by the Corporation's 
retirement system.

              Section 5. Marketing and Contract Authority

    Section 5(a) amends section 1401(a) of the AEA to eliminate 
the Corporation's authority to act as the exclusive marketing 
agent on behalf of the United States Government for the 
provision of enriched uranium and uranium enrichment and 
related services. This change will not prevent the Government, 
acting through the Department of Energy (DOE) or otherwise, 
from entering into marketing arrangements with the Corporation 
or any other qualified private sector entity in the future. The 
prohibition in section 1401(a) against the DOE marketing 
enrichment uranium (including low-enriched uranium derived from 
highly enriched uranium), and uranium enrichment and related 
services is retained and will prohibit the Department from 
competing with private sector entities in the sale of enriched 
uranium and uranium enrichment and related services.
    Section 5(b) amends current law to clarify that 
privatization will not affect the terms of, or the rights and 
obligations of the parties to, power purchase contracts 
executed by the Department prior to the transition date and 
that relate to uranium enrichment, but which the Secretary 
determined were not transferable to the Corporation. The 
section also adds a new subsection (3) to section 1401(b) to 
clarify the effect of the transfer of the contracts, agreements 
and leases entered into by the U.S. Government through the 
Department or its predecessors which were transferred to the 
Corporation pursuant to section 1401(b) of the AEA. Subsection 
(3)(A) provides that as a result of the transfer, all rights, 
privileges and benefits under the contracts, agreements and 
leases, including the right to amend, modify, extend, revise or 
terminate any of the contracts, agreements or leases, were 
irrevocably assigned to the Corporation for its exclusive 
benefit. As a consequence, no U.S. Government consent shall be 
required for any amendment, modification, extension, revision 
or termination of any of the contracts, agreements or leases. 
Subsections (3)(B) and (C) provide that notwithstanding the 
transfer of the contracts, agreements and leases to the 
Corporation, the United States will remain obligated to the 
parties to the contracts, agreements and leases until such time 
as the contracts, agreements or leases are materially modified 
or terminated. In addition, the Corporation will be obligated 
to fully reimburse the United States for amounts paid by the 
United States for fulfilling obligations under the contracts, 
agreements and leases arising after the privatization date to 
the extent such amounts are legal and valid obligations of the 
Corporation then due.
    Section 5(c) simply authorizes the Corporation to establish 
prices for its products and service that will allow it to 
attain the normal business objectives of a profitmaking 
corporation.
    Section 5(d) amends section 1403 of the AEA by adding a new 
subsection (h) relating to the disposal of low-level 
radioactive waste and mixed waste created in the course of the 
Corporation's operations. It authorizes the corporation to 
request that DOE accept low-level radioactive waste and mixed 
waste generated as a result of the operations of the facilities 
and related property leased by the Corporation from the 
Department or as a result of off-site treatment of such wastes. 
It further provides that all low-level radioactive wastes and 
mixed wastes that the Department accepts for treatment, 
storage, or disposal shall be deemed to be generated by the 
Department. The Corporation is directed to reimburse DOE for 
the treatment, storage or disposal of such waste in an amount 
equal to the Department's costs but in no event greater than an 
amount equal to that which would be charged by commercial, 
State, regional, or interstate compact entities for similar 
services. The section also authorizes the Corporation to enter 
into agreements for the treatment, storage or disposal of low-
level radioactive waste and mixed waste with any person other 
than the Department that is authorized by applicable laws and 
regulations to treat, store or dispose of such wastes.
    Section 5(e) provides that liabilities based on operations 
of the Corporation from the transition date to the 
privatization date shall be direct liabilities of the United 
States and that any judgment entered against the Corporation 
imposing liability arising out of the operation of the 
Corporation during such period will be considered a judgment 
against the United States. In the event the privatization does 
not occur, the Corporation shall retain all liabilities based 
on operations of the Corporation from the transition date. 
After privatization, liabilities arising from operation of the 
uranium enrichment enterprise would be borne by the private 
investors of the Corporation.
    Section 5(f) adds a new section 1409 authorizing the 
Secretary of Energy to transfer to the Corporation, without 
charge and before the privatization date, raw uranium, low-
enriched uranium and highly enriched uranium inventories of the 
Department. It is expected that the Government will receive 
fair value for any such inventories transferred to the 
Corporation by way of additional proceeds to the U.S. Treasury 
from the privatization of the Corporation.

              section 6. privatization of the corporation

    Section 6(a) amends chapter 25 of title II of the AEA by 
adding a new section 1503 that authorizes the Corporation to 
establish a corporation for purses of implementing 
privatization and set forth certain other matters with respect 
to such corporation. Under section 1503(a), the corporation may 
be organized under the law of any State. The corporation will 
have among its purposes to help maintain a reliable and 
economical domestic source of uranium enrichment services and 
will be authorized to exercise the rights of the Corporation 
under the AEA, including enriching uranium. In addition, the 
corporation will have such purposes and powers as are set forth 
in its articles or certificate of incorporation and as are 
provided under the laws of the jurisdiction of its 
organization. For purposes of implementing the privatization, 
the Corporation is authorized to (i) transfer some or all of 
its assets (including funds, contracts and leases) and 
liabilities to the corporation, and (ii) merge or consolidate 
with the corporation if such action is contemplated by the plan 
for privatization approved by the President. The Board of 
Directors of the Corporation is authorized to approve such 
merger or consolidation and to take all further actions 
necessary in connection with it, without shareholder action. 
The section also provides that the merger or consolidation 
shall be effected in accordance with, and have the effects of a 
merger or consolidation under, the laws of the jurisdiction of 
incorporation of the surviving corporation and all rights and 
benefits provided under the AEA to the Corporation shall apply 
to the surviving corporation as if it were the Corporation. 
Additionally, no income, gain or loss shall be recognized by 
any person by reason of the transfer of the Corporation's 
assets to, or the Corporation's merger with the corporation in 
connection with the privatization, or any cancellation of any 
obligation or common stock of the Corporation in connection 
with the privatization.
    Section 1503(b) provides that for purposes of the 
regulation of radiological and non-radiological hazards under 
the Occupational Safety and health Act of 1970, the corporation 
will be treated in the same manner as other employers licensed 
by the Nuclear Regulatory Commission (NRC). Any interagency 
agreement entered into between the NRC and the Occupational 
Safety and Health Administration governing the scope of their 
respective regulatory authorities will apply to the corporation 
as if it were an NRC licensee.
    Section 1503(c) provides the corporation will not be an 
agency, instrumentality, or established of the United States 
Government and shall not be a Government corporation, and that 
obligations of the corporation will not be obligations of the 
United States.
    Section 1503(d) provides that in the event the 
privatizations is implemented by means of a public offering, an 
election of the members of the board of directors of the 
Corporation by the shareholders shall be conducted within 1 
year of the date shares are first offered to the public 
pursuant to such offering.
    Section 1503(e) provides that the Secretary of Energy shall 
not allow the privatization by means of a public offering 
unless the Secretary determines that the estimated sum of the 
gross proceeds from the sale of the Corporation will be an 
adequate amount.
    Section 6(b) amends title II of the AEA by adding a new 
section 1504 which provides that if the privatization is 
implemented by a public offering, during a three-year period 
following privatization, no person, directly or indirectly, may 
acquire or hold securities representing more than 10 percent of 
the total votes of all outstanding voting securities of the 
Corporation. The ownership limitation would not apply (i) to 
any employee stock ownership plan of the Corporation, (ii) to 
underwriting syndicates holding shares for resale, or (iii) in 
the case of shares beneficially held for others, to 
commmerecial banks, broker-dealers, clearing corporations, or 
other nominees. Subsection (c) of section 1504 provides that 
directors, officers and employees of the Corporation may not 
acquire any securities, or any right to acquire securities, of 
the Corporation (1) in the public offering implementing the 
privatization, (2) pursuant to any agreement, arrangement or 
understanding entered into before the privatization date, or 
(3) before the election of directors of the Corporation under 
section 1503(d), on any terms more favorable than those offered 
to the public. These protections are necessary to ensure that 
privatization decisions made by the officers, directors and 
employees of the Corporation benefit the public interest in 
maximizing the return to the taxpayer from the sale of this 
asset and to assure that peresonal financial considerations not 
interfere with the decision-making process as various 
privatization options are considered. The provision ensure that 
stock options and employee benefits packages are delinked from 
the privatization process itself.
    Section 6(c) amends title of the AEA by adding a new 
section 1505. Subsection (a) of section 1505 exempts each 
director, officer, employee and agent of the Corporation from 
liability if such person were fulfilling a duty, in connection 
with any action taken in connection with the privatization, 
which such person in good faith reasonably believed to be 
required by law or vested in such person. Section 1505(b) 
provides that the privatization shall be subject to the 
Securities Act of 1933 and the Securities Exchange Act of 1934. 
Under existing law, the Corporation would be exempt from the 
Federal securities laws until the privatization date. Section 
1505(b) makes clear that the Corporation's general exemption 
from the Federal securities laws, however, will not apply to 
the privatization transaction. Section 1505(b) also provides 
that claims based on Federal or State securities laws and 
arising out of a public offering in connection with the 
privatization will be excluded the exemption in section 
1505(a).
    Section 6(d) amends title II of the AEA by adding a new 
section 1506 that provides that the Corporation shall not be 
considered to be in breach, default, or violations of any 
agreement to which it is a party because of any provision of 
chapter 25 or any action the Corporation is required to take 
thereunder. The section also states that the United States 
withdraws its consent to be sued with respect to any claim 
arising out of or resulting from any act of omission under 
chapter 25 of the AEA. Consequently, the United States will not 
be subject to any claims, for example, arising under the 
Federal securities laws in connection with the privatization 
transaction, notwithstanding the fact that under section 
1505(b) the privatization is subject to the Securities Act of 
1933 and the Securities Exchange Act of 1934.
    Section 6(e) amends title II of the AEA by adding a new 
section 1507 that provides that the proceeds to the U.S. 
Government from the privatization shall be included in the 
budget baseline required by the Balanced Budget and Emergency 
Deficit Control Act of 1985 and shall be counted as an offset 
to direct spending for purposes of section 252 of such act, 
notwithstanding section 257(e) of such act which generally 
prohibits counting asset sales as offsets to spending.
    Section 6(f) amends section 193 of the AEA by adding a new 
subsection (f) that provides that if the privatization of the 
Corporation results in the Corporation being (1) owned, 
controlled, or dominated by a foreign corporation or a foreign 
government, or (2) inimical to the common defense or security 
of the United States, then any license held by the Corporation 
under sections 53 and 63 of the AEA shall be terminated. This 
language ensures that uranium enrichment activities will be 
subject to the same foreign ownership limitations as any other 
nuclear production or utilization facility. It is expected that 
any interpretation of the terms in new subsection (f) would be 
consistent with the historical administrative interpretation of 
similar language in sections 103, 104 and 1502(a) of the AEA.
    Section 6(g) amends section 1502(d) of the AEA to provide 
that the Corporation may not implement its privatization plan 
less than 60 days after the date of the report to Congress by 
the Comptroller General under section 1502(c). The Comptroller 
General is obligated under section 1502(c) to deliver its 
report to Congress evaluating the privatization plan within 30 
days of Congress being notified of the Corporation's intent to 
implement the privatization plan. Accordingly, the Corporation 
will now have a minimum waiting period of 90 days after 
notifying Congress of its intent to implement its privatization 
plan before the Corporation may actually implement the plan.

            Section 7. Periodic Certification of Compliance

    This section provides that the Corporation shall be 
required to apply to the Nuclear Regulatory Commission for a 
certificate of compliance under section 1701(c)(1) 
periodically, as determined by the Nuclear Regulatory 
Commission, but not less than every 5 years. This change will 
conform the certification requirement to existing NRC licensing 
timeframes.

               Section 8. Licensing of Other Technologies

    Section 8 amends section 1702(a) of the AEA to provide that 
Corporation facilities using AVLIS technology will be licensed 
under sections 53 and 63 of the AEA. Other uranium enrichment 
technologies are currently eligible for one-step licensing, and 
this provision simply ensures equal treatment for all 
enrichment technologies.

                    Section 9. Conforming Amendments

    This section provides for repeal of certain provisions of 
the Atomic Energy Act. Upon privatization of the Corporation, 
certain provisions of the AEA generally relating to the 
organization and governance of the Corporation as a federal 
agency, as well as provisions granting the Corporation certain 
rights such as an exemption from state and local property 
taxes, would be inconsistent with the governance and rights of 
a corporation owned by private investors. Accordingly, such 
provisions are repealed following privatization. This section 
also provides that following privatization, references to the 
Corporation under title I of the AEA shall be deemed to mean 
the Corporation referred to in section 1201 of the AEA, and 
section 9101(3)(N) of title 31, United States Code shall be 
deleted.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

                       ATOMIC ENERGY ACT OF 1954

                            TABLE OF CONTENTS

                         TITLE I--ATOMIC ENERGY

     * * * * * * *

             TITLE II--UNITED STATES ENRICHMENT CORPORATION

                     Chapter 22--General Provisions

Sec. 1201. Definitions.
[Sec. 1202. Purposes.]

   Chapter 23--Establishment, Powers, and Organization of Corporation

[Sec. 1301. Establishment of the Corporation.
[Sec. 1302. Corporate offices.
[Sec. 1303. Powers of the Corporation.
[Sec. 1304. Board of Directors.
     * * * * * * *
[Sec. 1306. Audits.
[Sec. 1307. Annual reports.
[Sec. 1308. Accounts.
[Sec. 1309. Obligations.
[Sec. 1310. Exemption from taxation and payments in lieu of taxes.
[Sec. 1311. Cooperation with other agencies.
[Sec. 1312. Applicability of certain Federal laws.
[Sec. 1313. Security.
[Sec. 1314. Control of information.
[Sec. 1315. Transition.
[Sec. 1316. Working Capital Account.]

      Chapter 24--Rights, Privileges, and Assets of the Corporation

Sec. 1401. Marketing and contracting authority.
     * * * * * * *
[Sec. 1404. Capital structure of Corporation.
[Sec. 1405. Patents and inventions.]
     * * * * * * *

              Chapter 25--Privatization of the Corporation

Sec. 1501. Strategic plan for privatization.
     * * * * * * *
Sec. 1503. Establishment of private corporation.
Sec. 1504. Ownership limitations.
Sec. 1505. Exemption from liability.
Sec. 1506. Resolution of certain issues.
Sec. 1507. Application of privatization proceeds.

  Chapter 26--AVLIS and Alternative Technologies for Uranium Enrichment

[Sec. 1601. Assessment by United States Enrichment Corporation.]
     * * * * * * *
[Sec. 1603. Predeployment activities by United States Enrichment 
          Corporation.
[Sec. 1604. United States Enrichment Corporation sponsorship of private 
          for-profit corporation to construct AVLIS and alternative 
          technologies for uranium enrichment.
[Sec. 1605. AVLIS Commercialization Fund within United States Enrichment 
          Corporation.
[Sec. 1606. Department research and development assistance.
[Sec. 1607. Site selection.]
          * * * * * * *

                         TITLE I--ATOMIC ENERGY

          * * * * * * *

                         CHAPTER 2. DEFINITIONS

  Sec. 11. Definition.--The intent of Congress in the 
definitions as given in this section should be construed from 
the words or phrases used in the definitions. As used in this 
Act:
  a. * * *
          * * * * * * *
  v. The term ``production facility'' means (1) any equipment 
or device determined by rule of the Commission to be capable of 
the production of special nuclear material in such quantity as 
to be of significance to the common defense and security, or in 
such manner as to affect the health and safety of the public; 
or (2) any important component part especially designed for 
such equipment or device as determined by the Commission. 
Except with respect to the export of a uranium enrichment 
production facility [or the construction and operation of a 
uranium enrichment production facility using Atomic Vapor Laser 
Isotope Separation technology], such term as used in chapters 
10 and 16 shall not include any equipment or device (or 
important component part especially designed for such equipment 
or device) capable of separating the isotopes of uranium or 
enriching uranium in the isotope 235.
          * * * * * * *

        CHAPTER 16. JUDICIAL REVIEW AND ADMINISTRATIVE PROCEDURE

          * * * * * * *

SEC. 193. LICENSING OF URANIUM ENRICHMENT FACILITIES.

  (a) * * *
          * * * * * * *
  (f) Limitation.--If the privatization of the United States 
Enrichment Corporation results in the Corporation being--
          (1) owned, controlled, or dominated by a foreign 
        corporation or a foreign government, or
          (2) otherwise inimical to the common defense or 
        security of the United States,
any license held by the Corporation under sections 53 and 63 
shall be terminated.
          * * * * * * *

             TITLE II--UNITED STATES ENRICHMENT CORPORATION

                     CHAPTER 22--GENERAL PROVISIONS

 H4  deg.SEC. 1201. DEFINITIONS.

  For purposes of this title:
          (1) * * *
          * * * * * * *
          (4) The term ``Corporation'' means the United States 
        Enrichment Corporation and any successor corporation 
        established through privatization of the Corporation.
          * * * * * * *
          (10) The term ``low-level radioactive waste'' has the 
        meaning given such term in section 102(9) of the Low-
        Level Radioactive Waste Policy Amendments Act of 1985 
        (42 U.S.C. 2021b(9)).
          (11) The term ``mixed waste'' has the meaning given 
        such term in section 1004(41) of the Solid Waste 
        Disposal Act (42 U.S.C. 6903(41)).
          (12) The term ``privatization'' means the transfer of 
        ownership of the Corporation to private investors 
        pursuant to chapter 25.
          (13) The term ``privatization date'' means the date 
        on which 100 percent of ownership of the Corporation 
        has been transferred to private investors.
          [(10)] (14) The term ``releases'' has the meaning 
        given the term ``release'' in section 101(22) of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601(22)).
          [(11)] (15) The term ``remedial action'' has the 
        meaning given such term in section 101(24) of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601(24)).
          [(12)] (16) The term ``response actions'' has the 
        meaning given the term ``response'' in section 101(25) 
        of the Comprehensive Environmental Response, 
        Compensation, and Liability Act of 1980 (42 U.S.C. 
        9601(25)).
          [(13)] (17) The term ``Secretary'' means the 
        Secretary of Energy.
          (18) The term ``transition date'' means July 1, 1993.
          [(14)] (19) The term ``uranium enrichment'' means the 
        separation of uranium of a given isotopic content into 
        2 components, 1 having a higher percentage of a fissile 
        isotope and 1 having a lower percentage.

[SEC. 1202. PURPOSES.

  [The Corporation is created for the following purposes:
          [(1) To operate as a business enterprise on a 
        profitable and efficient basis.
          [(2) To maximize the long-term value of the 
        Corporation to the Treasury of the United States.
          [(3) To lease Department uranium enrichment 
        facilities, as needed.
          [(4) To acquire uranium for uranium enrichment, low-
        enriched uranium for resale, and highly enriched 
        uranium for conversion into low-enriched uranium, as 
        needed.
          [(5) To market and sell its enriched uranium and 
        uranium enrichment and related services to--
                  [(A) the Department for governmental 
                purposes; and
                  [(B) domestic and foreign persons, as 
                provided in section 1303(6).
          [(6) To conduct research and development as required 
        to meet business objectives for the purposes of 
        identifying, evaluating, improving, and testing 
        alternative technologies for uranium enrichment.
          [(7) To conduct the business as a self-financing 
        corporation and eliminate the need for Federal 
        Government appropriations or sources of Federal 
        financing other than those provided in this title.
          [(8) To help maintain a reliable and economical 
        domestic source of uranium enrichment services.
          [(9) To comply with laws, and regulations promulgated 
        thereunder, to protect the public health, safety, and 
        the environment.
          [(10) To continue at all times to meet the objectives 
        of ensuring the Nation's common defense and security, 
        including abiding by United States laws and policies 
        concerning special nuclear materials and 
        nonproliferation of atomic weapons and other 
        nonpeaceful uses of atomic energy.
          [(11) To take all other lawful actions in furtherance 
        of these purposes.]

   CHAPTER 23--ESTABLISHMENT, POWERS, AND ORGANIZATION OF CORPORATION

 H4  deg.[SEC. 1301. ESTABLISHMENT OF THE CORPORATION.

  [(a) In General.--There is established a body corporate to be 
known as the United States Enrichment Corporation.
  [(b) Government Corporation.--The Corporation shall be 
established as a wholly owned Government corporation subject to 
chapter 91 of title 31, United States Code (commonly referred 
to as the Government Corporation Control Act), except as 
otherwise provided in this title.
  [(c) Federal Agency.--The Corporation shall be an agency and 
instrumentality of the United States.

 H4  deg.[SEC. 1302. CORPORATE OFFICES.

  [The Corporation shall maintain an office for the service of 
process and papers in the District of Columbia, and shall be 
deemed, for purposes of venue in civil actions, to be a 
resident thereof. The Corporation may establish offices in such 
other place or places as it may deem necessary or appropriate 
in the conduct of its business.

 H4  deg.[SEC. 1303. POWERS OF THE CORPORATION.

  [In order to accomplish its purposes, the Corporation--
          [(1) shall, except as provided in this title or 
        applicable Federal law, have all the powers of a 
        private corporation incorporated under the District of 
        Columbia Business Corporation Act;
          [(2) shall have the priority of the United States 
        with respect to the payment of debts out of bankrupt, 
        insolvent, and decedents' estates;
          [(3) may obtain from the Administrator of General 
        Services the services the Administrator is authorized 
        to provide agencies of the United States, on the same 
        basis as those services are provided to other agencies 
        of the United States;
          [(4) shall enrich uranium, provide for uranium to be 
        enriched by others, or acquire enriched uranium 
        (including low-enriched uranium derived from highly 
        enriched uranium provided under section 1408);
          [(5) may conduct, or provide for conducting, those 
        research and development activities related to uranium 
        enrichment and related processes and activities the 
        Corporation considers necessary or advisable to 
        maintain the Corporation as a commercial enterprise 
        operating on a profitable and efficient basis;
          [(6) may enter into transactions regarding uranium, 
        enriched uranium, or depleted uranium with--
                  [(A) persons licensed under section 53, 63, 
                103, or 104 in accordance with the licenses 
                held by those persons;
                  [(B) persons in accordance with, and within 
                the period of, an agreement for cooperation 
                arranged under section 123; or
                  [(C) persons otherwise authorized by law to 
                enter into such transactions;
          [(7) may enter into contracts with persons licensed 
        under section 53, 63, 103, or 104, for as long as the 
        Corporation considers necessary or desirable, to 
        provide uranium or uranium enrichment and related 
        services;
          [(8) may enter into contracts to provide uranium or 
        uranium enrichment and related services in accordance 
        with, and within the period of, an agreement for 
        cooperation arranged under section 123 or as otherwise 
        authorized by law; and
          [(9) shall sell to the Department as provided in this 
        title, without regard to section 57 e., the amounts of 
        uranium enrichment and related services that the 
        Department determines from time to time are required 
        for it to--
                  [(A) carry out Presidential directions and 
                authorizations under section 91; and
                  [(B) conduct other Department programs.

 H4  deg.[SEC. 1304. BOARD OF DIRECTORS.

  [(a) In General.--The powers of the Corporation are vested in 
the Board of Directors.
  [(b) Appointment.--The Board of Directors shall consist of 5 
individuals, to be appointed by the President by and with the 
advice and consent of the Senate. The President shall designate 
a Chairman of the Board from among members of the Board.
  [(c) Qualifications.--Members of the Board shall be citizens 
of the United States. No member of the Board shall be an 
employee of the Corporation or have any direct financial 
relationship with the Corporation other than that of being a 
member of the Board.
  [(d) Terms.--
          [(1) In general.--Except as provided in paragraph 
        (2), members of the Board shall serve 5-year terms or 
        until the election of a new Board of Directors under 
        section 1704, whichever comes first.
          [(2) Initial members.--Of the members first appointed 
        to the Board--
                  [(A) 1 shall be appointed for a 1-year term;
                  [(B) 1 shall be appointed for a 2-year term;
                  [(C) 1 shall be appointed for a 3-year term; 
                and
                  [(D) 1 shall be appointed for a 4-year term.
          [(3) Reappointment.--Members of the Board may be 
        reappointed by the President, by and with the advice 
        and consent of the Senate.
  [(e) Vacancies.--Upon the occurrence of a vacancy on the 
Board, the President by and with the advice and consent of the 
Senate shall appoint an individual to fill such vacancy for the 
remainder of the applicable term.
  [(f) Meetings and Quorum.--The Board shall meet at any time 
pursuant to the call of the Chairman and as provided by the 
bylaws of the Corporation, but not less than quarterly. Three 
voting members of the Board shall constitute a quorum. A 
majority of the Board shall adopt and from time to time may 
amend bylaws for the operation of the Board.
  [(g) Powers.--The Board shall be responsible for general 
management of the Corporation and shall have the same 
authority, privileges, and responsibilities as the board of 
directors of a private corporation incorporated under the 
District of Columbia Business Corporation Act.
  [(h) Compensation.--Members of the Board shall serve on a 
part-time basis and shall receive per diem, when engaged in the 
actual performance of Corporation duties, plus reimbursement 
for travel, subsistence, and other necessary expenses incurred 
in the performance of their duties.
  [(i) Membership of Secretary of Treasury.--The President may 
appoint the Secretary of the Treasury or his designee to serve 
as a member of the Board or as a nonvoting, ex officio member 
of the Board.
  [(j) Conflict of Interest Requirements.--No director, 
officer, or other management level employee of the Corporation 
may have a financial interest in any customer, contractor, or 
competitor of the Corporation or in any business that may be 
adversely affected by the success of the Corporation.]

[SEC. 1305. EMPLOYEES OF THE CORPORATION.

  [(a) Appointment.--The Board shall appoint such officers and 
employees as are necessary for the transaction of its business.
  [(b) Compensation, Duties, and Removal.--The Board shall, 
without regard to section 5301 of title 5, United States Code, 
fix the compensation of all officers and employees of the 
Corporation, define their duties, and provide a system of 
organization to fix responsibility and promote efficiency. Any 
officer or employee of the Corporation may be removed in the 
discretion of the Board.
  [(c) Applicable Criteria.--The Board shall ensure that the 
personnel function and organization is consistent with the 
principles of section 2301(b) of title 5, United States Code, 
relating to merit system principles. Officers and employees 
shall be appointed, promoted, and assigned on the basis of 
merit and fitness, and other personnel actions shall be 
consistent with the principles of fairness and due process but 
without regard to those provisions of title 5 of the United 
States Code governing appointments and other personnel actions 
in the competitive service.
  [(d) Treatment of Persons Employed Prior to Transition 
Date.--Compensation, benefits, and other terms and conditions 
of employment in effect immediately prior to the transition 
date, whether provided by statute or by rules of the Department 
or the executive branch, shall continue to apply to officers 
and employees who transfer to the Corporation from other 
Federal employment until changed by the Board.
  [(e) Protection of Existing Employees.--
          [(1) In general.--It is the purpose of this 
        subsection to ensure that the establishment of the 
        Corporation pursuant to this chapter shall not result 
        in any adverse effects on the employment rights, wages, 
        or benefits of employees at facilities that are 
        operated, directly or under contract, in the 
        performance of the functions vested in the Corporation.
          [(2) Applicability of existing collective bargaining 
        agreement.--Any employer (including the Corporation) at 
        a facility described in paragraph (1) shall abide by 
        the terms of a collective bargaining agreement in 
        effect on April 30, 1991, at each individual facility 
        until--
                  [(A) the earlier of the date on which a new 
                bargaining agreement is signed; or
                  [(B) the end of the 2-year period beginning 
                on the date of the enactment of this title.
          [(3) Applicability of nlra.--Except as specifically 
        provided in this subsection, the Corporation is subject 
        to the provisions of the National Labor Relations Act 
        (29 U.S.C. 151 et seq.).]
  (a) In general.--It is the purpose of this subsection to 
ensure that the privatization of the Corporation shall not 
result in any adverse effects on the pension benefits of 
employees at facilities that are operated, directly or under 
contract, in the performance of the functions vested in the 
Corporation.
  (b) Applicability of existing collective bargaining 
agreement.--The Corporation shall abide by the terms of the 
collective bargaining agreement in effect on the privatization 
date at each individual facility.
  [(4)] (c) Benefits of transferees [and detailees].--[At the 
request of the Board and subject to the approval of the 
Secretary, an employee of the Department may be transferred or 
detailed as provided for in section 1315, to the Corporation 
without any loss in accrued benefits or standing within the 
Civil Service System.] For those employees who accept transfer 
to the Corporation from other Federal employment, it shall be 
their option as to whether to have any accrued retirement 
benefits transferred to a retirement system established by the 
Corporation or to retain their coverage under either the Civil 
Service Retirement System or the Federal Employees' Retirement 
System, as applicable, in lieu of coverage by the Corporation's 
retirement system. For those employees electing to remain with 
one of the Federal retirement systems, the Corporation shall 
withhold pay and make such payments as are required under the 
Federal retirement system. [For those Department employees 
detailed, the Department shall offer those employees a position 
of like grade, compensation, and proximity to their official 
duty station after their services are no longer required by the 
Corporation.

 H4  deg.[SEC. 1306. AUDITS.

  [(a) Independent Audits.--
          [(1) In general.--The financial statements of the 
        Corporation shall be prepared in accordance with 
        generally accepted accounting principles and shall be 
        audited annually by an independent certified public 
        accountant in accordance with auditing standards issued 
        by the Comptroller General. Such auditing standards 
        shall be consistent with the private sector's generally 
        accepted auditing standards.
          [(2) Review by gao.--The Comptroller General may 
        review any audit of the Corporation's financial 
        statements conducted under paragraph (1). The 
        Comptroller General shall report to the Congress and 
        the Corporation the results of any such review and 
        shall include in such report appropriate 
        recommendations.
  [(b) GAO Audits.--
          [(1) In general.--The Comptroller General may audit 
        the financial statements of the Corporation for any 
        year in the manner provided in subsection (a)(1).
          [(2) Reimbursement by corporation.--The Corporation 
        shall reimburse the Comptroller General for the full 
        cost of any audit conducted under this subsection, as 
        determined by the Comptroller General.
  [(c) Availability of Books and Records.--All books, accounts, 
financial records, reports, files, papers, and other property 
belonging to or in use by the Corporation and its auditor that 
the Comptroller General considers necessary to the performance 
of any audit or review under this section shall be made 
available to the Comptroller General, subject to section 1314.
  [(d) Treatment of GAO Audits.--Activities the Comptroller 
General conducts under this section shall be in lieu of any 
other audit of the financial transactions of the Corporation 
the Comptroller General is required to make under chapter 91 of 
title 31, United States Code, or other law.

 H4  deg.[SEC. 1307. ANNUAL REPORTS.

  [(a) In General.--The Corporation shall prepare and submit an 
annual report of its activities to the President and the 
Congress. This report shall contain--
          [(1) a general description of the Corporation's 
        operations;
          [(2) a summary of the Corporation's operating and 
        financial performance, including an explanation of the 
        decision to pay or not pay dividends;
          [(3) copies of audit reports prepared under section 
        1305;
          [(4) the information required under regulations 
        issued under section 13 of the Securities Exchange Act 
        of 1934 (15 U.S.C. 78m); and
          [(5) an identification and assessment of any 
        impairment of capital or ability of the Corporation to 
        comply with this title.
  [(b) Deadline.--The report shall be completed not later than 
150 days following the close of each of the Corporation's 
fiscal years and shall accurately reflect the financial 
position of the Corporation at fiscal year end.

 H4  deg.[SEC. 1308. ACCOUNTS.

  [(a) Establishment of United States Enrichment Corporation 
Fund.--There is established in the Treasury of the United 
States a revolving fund, to be known as the ``United States 
Enrichment Corporation Fund'', which shall be available to the 
Corporation, without need for further appropriation and without 
fiscal year limitation, for carrying out its purposes, 
functions, and powers, and which shall not be subject to 
apportionment under subchapter II of chapter 15 of title 31, 
United States Code.
  [(b) Transfer of Unexpended Balances.--On the transfer date, 
the Secretary shall, without need of further appropriation, 
transfer to the Corporation the unexpended balance of 
appropriations and other monies available to the Department 
(inclusive of funds set aside for accounts payable), and 
accounts receivable which are related to functions and 
activities acquired by the Corporation from the Department 
pursuant to this title, including all advance payments.

 H4  deg.[SEC. 1309. OBLIGATIONS.

  [(a) Issuance.--
          [(1) In general.--The Corporation may issue and sell 
        bonds, notes, and other evidences of indebtedness 
        (collectively referred to in this title as ``bonds''), 
        except that the Corporation may not issue or sell bonds 
        for the purpose of constructing new uranium enrichment 
        facilities or conducting directly related 
        preconstruction activities. Borrowing under this 
        paragraph during any fiscal year ending before October 
        1, 1996, shall be subject to approval in appropriation 
        Acts.
          [(2) Use of revenues.--The Corporation may pledge and 
        use its revenues for payment of the principal of and 
        interest on its bonds, for their purchase or 
        redemption, and for other purposes incidental to these 
        functions, including creation of reserve funds and 
        other funds that may be similarly pledged and used.
          [(3) Agreements with holders and trustees.--The 
        Corporation may enter into binding covenants with the 
        holders and trustees of its bonds with respect to--
                  [(A) the establishment of reserve and other 
                funds;
                  [(B) stipulations concerning the subsequent 
                issuance of bonds; and
                  [(C) other matters not inconsistent with this 
                title;
        that the Corporation determines necessary or desirable 
        to enhance the marketability of the bonds.
  [(b) Not Obligations of United States.--Bonds issued by the 
Corporation under this section shall not be obligations of, or 
guaranteed as to principal or interest by, the United States, 
and the bonds shall so plainly state.
  [(c) Terms and Conditions.--
          [(1) Negotiable; maturity.--Bonds issued by the 
        Corporation under this section shall be negotiable 
        instruments unless otherwise specified in the bond and 
        shall mature not more than 50 years after their date of 
        issuance.
          [(2) Role of secretary of the treasury.--
                  [(A) Right of disapproval.--The Corporation 
                may set the terms and conditions of bonds 
                issued under this section, subject to 
                disapproval of such terms and conditions by the 
                Secretary of the Treasury within 5 days after 
                the Secretary of the Treasury is notified of 
                the following terms and conditions of the 
                bonds:
                          [(i) Their forms and denominations.
                          [(ii) The times, amounts, and prices 
                        at which they are sold.
                          [(iii) Their rates of interest.
                          [(iv) The terms at which they may be 
                        redeemed by the Corporation before 
                        maturity.
                          [(v) The priority of their claims on 
                        the Corporation's net revenues with 
                        respect to principal and interest 
                        payments.
                          [(vi) Any other terms and conditions.
                  [(B) Inapplicability of right to prescribe 
                terms.--Section 9108(a) of title 31, United 
                States Code, shall not apply to the 
                Corporation.
  [(d) Inapplicability of securities requirements.--The 
Corporation shall be considered an executive department of the 
United States for purposes of section 3(c) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78c(c)).
  [(e) Inapplicability of FFB.--The Corporation shall not issue 
or sell any bonds to the Federal Financing Bank.

[SEC. 1310. EXEMPTION FROM TAXATION AND PAYMENTS IN LIEU OF TAXES.

  [(a) Exemption From Taxation.--In order to render financial 
assistance to those States and localities in which the 
facilities of the Corporation are located, the Corporation 
shall, beginning in fiscal year 1998, make payments to State 
and local governments as provided in this section. These 
payments shall be in lieu of any and all State and local taxes 
on the real and personal property of the Corporation. All 
property of the Corporation is expressly exempted from taxation 
in any manner or form by any State, county, or other local 
government entity including State, county, or other local 
government sales tax.
  [(b) Payments in Lieu of Taxes.--Beginning in fiscal year 
1998, the Corporation shall make annual payments, in amounts 
determined by the Corporation to be fair and reasonable, to the 
State and local governmental agencies having tax jurisdiction 
in any area where facilities of the Corporation are located. In 
making these determinations, the Corporation shall be guided by 
the following criteria:
          [(1) The Corporation shall take into account the 
        customs and practices prevailing in the area with 
        respect to appraisal, assessment, and classification of 
        industrial property and any special considerations 
        extended to large-scale industrial operations.
          [(2) The payment made to any taxing authority for any 
        period shall not be less than the payments that would 
        have been made to the taxing authority for the same 
        period by the Department and its cost-type contractors 
        on behalf of the Department with respect to property 
        that has been transferred to the Corporation under 
        section 1404 and that would have been attributable to 
        the ownership, management, operation, and maintenance 
        of the Department's uranium enrichment facilities, 
        applying the laws and policies prevailing immediately 
        prior to the transition date.
  [(c) Time of Payments.--Payments shall be made by the 
Corporation at the time when payments of taxes by taxpayers to 
each taxing authority are due and payable.
  [(d) Determination of Amount Due.--The determination by the 
Corporation of the amounts due under this section shall be 
final and conclusive.

 H4  deg.[SEC. 1311. COOPERATION WITH OTHER AGENCIES.

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

 H4  deg.[SEC. 1312. APPLICABILITY OF CERTAIN FEDERAL LAWS.

  [(a) Antitrust Laws.--The Corporation shall conduct its 
activities in a manner consistent with the policies expressed 
in the following antitrust laws:
          [(1) The Sherman Act (15 U.S.C. 1-7).
          [(2) The Clayton Act (15 U.S.C. 12-27).
          [(3) Sections 73 and 74 of the Wilson Tariff Act (15 
        U.S.C. 8 and 9).
  [(b) Environmental Laws.--The Corporation shall be subject 
to, and comply with, all Federal and State, interstate, and 
local environmental laws and requirements, both substantive and 
procedural, in the same manner, and to the same extent, as any 
person who is subject to such laws and requirements. For 
purposes of enforcing any such law or substantive or procedural 
requirements (including any injunctive relief, administrative 
order, or civil or administrative penalty or fine) against the 
Corporation, the United States expressly waives any immunity 
otherwise applicable to the Corporation. For the purposes of 
this subsection, the term ``person'' means an individual, 
trust, firm, joint stock company, corporation, partnership, 
association, State, municipality, or political subdivision of a 
State.
  [(c) OSHA Requirements.--Notwithstanding sections 3(5), 
4(b)(1), and 19 of the Occupational Safety and Health Act of 
1970 (29 U.S.C. 652(5), 653(b)(1), and 668)), the Corporation 
shall be subject to, and comply with, such Act and all 
regulations and standards promulgated thereunder in the same 
manner, and to the same extent, as an employer is subject to 
such Act. For the purposes of enforcing such Act (including any 
injunctive relief, administrative order, or civil, 
administrative, or criminal penalty or fine) against the 
Corporation, the United States expressly waives any immunity 
otherwise applicable to the Corporation.
  [(d) Labor Standards.--The Act of March 3, 1931 (known as the 
Davis-Bacon Act) (40 U.S.C. 276a et seq.) and the Service 
Contract Act of 1965 (41 U.S.C. 351 et seq.) shall apply to the 
Corporation. All laborers and mechanics employed on the 
construction, alteration, or repair of projects funded, in 
whole or in part, by the Corporation shall be paid wages at 
rates not less than those prevailing on projects of a similar 
character in the locality as determined by the Secretary of 
Labor in accordance with such Act of March 3, 1931. The 
Secretary of Labor shall have, with respect to the labor 
standards specified in this subsection, the authority and 
functions set forth in Reorganization Plan Numbered 14 of 1950 
(15 F.R. 3176, 64 Stat. 1267) and the Act of June 13, 1934 (40 
U.S.C. 276c).
  [(e) Energy Reorganization Act Requirements.--The Corporation 
is subject to the provisions of section 210 of the Energy 
Reorganization Act of 1974 (42 U.S.C. 5850) to the same extent 
as an employer subject to such section, and, with respect to 
the operation of the facilities leased by the Corporation, 
section 206 of the Energy Reorganization Act of 1974 (42 U.S.C. 
5846) shall apply to the directors and officers of the 
Corporation.
  [(f) Exemption From Federal Property Requirements.--The 
Corporation shall not be subject to the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 471 et seq.).

 H4  deg.[SEC. 1313. SECURITY.

  [Any references to the term ``Commission'' or to the 
Department in sections 161k., 221a., and 230 shall be 
considered to include the Corporation.

 H4  deg.[SEC. 1314. CONTROL OF INFORMATION.

  [(a) In General.--Except as provided in subsection (b), the 
Corporation may protect trade secrets and commercial or 
financial information to the same extent as a privately owned 
corporation.
  [(b) Other Applicable Laws.--Section 552(d) of title 5, 
United States Code, shall apply to the Corporation, and such 
information shall be subject to the applicable provisions of 
law protecting the confidentiality of trade secrets and 
business and financial information, including section 1905 of 
title 18, United States Code.

 H4  deg.[SEC. 1315. TRANSITION.

  [(a) Transition Manager.--Within 30 days after the date of 
the enactment of this title, the President shall appoint a 
Transition Manager, who shall serve at the pleasure of the 
President until a quorum of the Board has been appointed and 
confirmed in accordance with section 1304.
  [(b) Powers.--
          [(1) In general.--Until a quorum of the Board has 
        qualified, the Transition Manager shall exercise the 
        powers and duties of the Board and shall be responsible 
        for taking all actions needed to effect the transfer of 
        the uranium enrichment enterprise from the Secretary to 
        the Corporation on the transition date.
          [(2) Continuation until board has quorum.--In the 
        event that a quorum of the Board has not qualified by 
        the transition date, the Transition Manager shall 
        continue to exercise the powers and duties of the Board 
        until a quorum has qualified.
  [(c) Ratification of Transition Manager's Actions.--All 
actions taken by the Transition Manager before the 
qualification of a quorum of the Board shall be subject to 
ratification by the Board.
  [(d) Responsibilities of Secretary.--Before the transition 
date, the Secretary shall--
          [(1) continue to be responsible for the management 
        and operation of the uranium enrichment plants;
          [(2) provide funds, to the extent provided in 
        appropriations Acts, to the Transition Manager to pay 
        salaries and expenses;
          [(3) delegate Department employees to assist the 
        Transition Manager in meeting his responsibilities 
        under this section; and
          [(4) assist and cooperate with the Transition Manager 
        in preparing for the transfer of the uranium enrichment 
        enterprise to the Corporation on the transition date.
  [(e) Transition Date.--The transition date shall be July 1, 
1993.
  [(f) Detail of Personnel.--For the purpose of continuity of 
operations, maintenance, and authority, the Department shall 
detail, for up to 18 months after the date of the enactment of 
this title, appropriate Department personnel as may be required 
in an acting capacity, until such time as a Board is confirmed 
and top officers of the Corporation are hired. The Corporation 
shall reimburse the Department and its contractors for the 
detail of such personnel.

[SEC. 1316. WORKING CAPITAL ACCOUNT.

  [There shall be established within the Corporation a Working 
Capital Account in which the Corporation may retain all revenue 
necessary for legitimate business expenses, or investments, 
related to carrying out its purposes.]

     CHAPTER 24--RIGHTS, PRIVILEGES, AND ASSETS OF THE CORPORATION

 H4  deg.SEC. 1401. MARKETING AND CONTRACTING AUTHORITY.

  (a) [Exclusive Marketing Agent.--The Corporation shall act as 
the exclusive marketing agent on behalf of the United States 
Government for entering into contracts for providing enriched 
uranium (including low-enriched uranium derived from highly 
enriched uranium) and uranium enrichment and related services.] 
Marketing Authority.--The Department may not market enriched 
uranium (including low-enriched uranium derived from highly 
enriched uranium), or uranium enrichment and related services, 
after the transition date.
  (b) Transfer of Contracts.--
          (1) * * *
          (2) Exceptions.--
                  (A) * * *
                  (B) Nontransferable power contracts.--If the 
                Secretary determines that a power purchase 
                contract executed by the Department prior to 
                the transition date cannot be transferred under 
                its terms, the Secretary may continue to 
                receive power under the contract and resell 
                such power to the Corporation at cost. The 
                privatization of the Corporation shall not 
                affect the terms of, or the rights or 
                obligations of the parties to, any such power 
                purchase contract.
          (3) Effect of transfer.--
                  (A) As a result of the transfer pursuant to 
                paragraph (1), all rights, privileges, and 
                benefits under such contracts, agreements, and 
                leases, including the right to amend, modify, 
                extend, revise, or terminate any of such 
                contracts, agreements, or leases were 
                irrevocably assigned to the Corporation for its 
                exclusive benefit.
                  (B) Notwithstanding the transfer pursuant to 
                paragraph (1), the United States shall remain 
                obligated to the parties to the contracts, 
                agreements, and leases transferred pursuant to 
                paragraph (1) for the performance of the 
                obligations of the United States thereunder 
                during the term thereof. The Corporation shall 
                reimburse the United States for any amount paid 
                by the United States in respect of such 
                obligations arising after the privatization 
                date to the extent such amount is a legal and 
                valid obligation of the Corporation then due.
                  (C) After the privatization date, upon any 
                material amendment, modification, extension, 
                revision, replacement, or termination of any 
                contract, agreement, or lease transferred under 
                paragraph (1), the United States shall be 
                released from further obligation under such 
                contract, agreement, or lease, except that such 
                action shall not release the United States from 
                obligations arising under such contract, 
                agreement, or lease prior to such time.

[SEC. 1402. PRICING.

  [(a) Services Provided to Commercial Customers.--The 
Corporation shall establish prices for its products, materials, 
and services provided to customers other than the Department on 
a basis that will allow it to attain the normal business 
objectives of a profitmaking corporation.
  [(b) Services Provided to DOE.--The Corporation shall charge 
prices to the Department for uranium enrichment services 
provided under section 1303(9) on a basis that will allow it to 
recover its costs, on a yearly basis, for providing products, 
materials, and services, and provide for a reasonable profit.]

SEC. 1402. PRICING.

  The Corporation shall establish prices for its products, 
materials, and services provided to customers on a basis that 
will allow it to attain the normal business objectives of a 
profitmaking corporation.

SEC. 1403. LEASING OF GASEOUS DIFFUSION FACILITIES OF DEPARTMENT.

  (a) * * *
          * * * * * * *
  (h) Low-Level Radioactive Waste and Mixed Waste.--
          (1) Responsibility of the department; costs.--
                  (A) With respect to low-level radioactive 
                waste and mixed waste generated by the 
                Corporation as a result of the operation of the 
                facilities and related property leased by the 
                Corporation pursuant to subsection (a) or as a 
                result of treatment of such wastes at a 
                location other than the facilities and related 
                property leased by the Corporation pursuant to 
                subsection (a) the Department, at the request 
                of the Corporation, shall--
                          (i) accept for treatment or disposal 
                        of all such wastes for which treatment 
                        or disposal technologies and capacities 
                        exist, whether within the Department or 
                        elsewhere; and
                          (ii) accept for storage (or 
                        ultimately treatment or disposal) all 
                        such wastes for which treatment and 
                        disposal technologies or capacities do 
                        not exist, pending development of such 
                        technologies or availability of such 
                        capacities for such wastes.
                  (B) All low-level wastes and mixed wastes 
                that the Department accepts for treatment, 
                storage, or disposal pursuant to subparagraph 
                (A) shall, for the purpose of any permits, 
                licenses, authorizations, agreements, or orders 
                involving the Department and other Federal 
                agencies or State or local governments, be 
                deemed to be generated by the Department and 
                the Department shall handle such wastes in 
                accordance with any such permits, licenses, 
                authorizations, agreements, or orders. The 
                Department shall obtain any additional permits, 
                licenses, or authorizations necessary to handle 
                such wastes, shall amend any such agreements or 
                orders as necessary to handle such wastes, and 
                shall handle such wastes in accordance 
                therewith.
                  (C) The Corporation shall reimburse the 
                Department for the treatment, storage, or 
                disposal of low-level radioactive waste or 
                mixed waste pursuant to subparagraph (A) in an 
                amount equal to the Department's costs but in 
                no event greater than an amount equal to that 
                which would be charged by commercial, State, 
                regional, or interstate compact entities for 
                treatment, storage, or disposal of such waste.
          (2) Agreements with other persons.--The Corporation 
        may also enter into agreements for the treatment, 
        storage, or disposal of low-level radioactive waste and 
        mixed waste generated by the Corporation as a result of 
        the operation of the facilities and related property 
        leased by the Corporation pursuant to subsection (a) 
        with any person other than the Department that is 
        authorized by applicable laws and regulations to treat, 
        store, or dispose of such wastes.

[SEC. 1404. CAPITAL STRUCTURE OF CORPORATION.

  [(a) Capital Stock.--
          [(1) Issuance to secretary of the treasury.--The 
        Corporation shall issue capital stock representing an 
        equity investment equal to the greater of--
                  [(A) $3,000,000,000; or
                  [(B) the book value of assets transferred to 
                the Corporation, as reported in the Uranium 
                Enrichment Annual Report for fiscal year 1991, 
                modified to reflect continued depreciation and 
                other usual changes that occur up to the 
                transfer date.
        The Secretary of the Treasury shall hold such stock for 
        the United States, except that all rights and duties 
        pertaining to management of the Corporation shall 
        remain vested in the Board.
          [(2) Restriction on transfers of stock by united 
        states.--The capital stock of the Corporation shall not 
        be sold, transferred, or conveyed by the United States, 
        except to carry out the privatization of the 
        Corporation under section 1502.
          [(3) Annual assessment.--The Secretary of the 
        Treasury shall annually assess the value of the stock 
        held by the Secretary under paragraph (1) and submit to 
        the Congress a report setting forth such value. The 
        annual assessment of the Secretary shall be subject to 
        review by an independent auditor.
  [(b) Payment of Dividends.--The Corporation shall pay into 
miscellaneous receipts of the Treasury of the United States or 
such other fund as is provided by law, dividends on the capital 
stock, out of earnings of the Corporation, as a return on the 
investment represented by such stock. Until privatization 
occurs under section 1502, the Corporation shall pay as 
dividends to the Treasury of the United States all net revenues 
remaining at the end of each fiscal year not required for 
operating expenses or for deposit into the Working Capital 
Account established in section 1316.
  [(c) Prohibition on Additional Federal Assistance.--Except as 
otherwise specifically provided in this title, the Corporation 
shall receive no appropriations, loans, or other financial 
assistance from the Federal Government.
  [(d) Sole Recovery of Unrecovered Costs.--Receipt by the 
United States of the proceeds from the sale of stock issued by 
the Corporation under subsection (a)(1), and the dividends paid 
under subsection (b), shall constitute the sole recovery by the 
United States of previously unrecovered costs (including 
depreciation and imputed interest on original plant investments 
in the Department's gaseous diffusion plants) that have been 
incurred by the United States for uranium enrichment activities 
prior to the transition date.

 H4  deg.[SEC. 1405. PATENTS AND INVENTIONS.

  [The Corporation may at any time apply to the Department for 
a patent license for the use of an invention or discovery 
useful in the production or utilization of special nuclear 
material or atomic energy covered by a patent when the patent 
has not been declared to be affected with the public interest 
under section 153 a. and when use of the patent is within the 
Corporation's authority. An application shall constitute an 
application under section 153 c. subject to section 153 c., d., 
e., f., g., and h.]

 H4  deg.SEC. 1406. LIABILITIES.

  (a) Liabilities Based on Operations Before Transition and 
Privatization.--Except as otherwise provided in this title, all 
liabilities attributable to operation of the uranium enrichment 
enterprise before the transition date shall remain direct 
liabilities of the Department. As of the privatization date, 
all liabilities attributable to the operation of the 
Corporation from the transition date to the privatization date 
shall be direct liabilities of the United States.
  (b) Judgments Based on Operations Before Transition and 
Privatization.--Any judgment entered against the Corporation 
imposing liability arising out of the operation of the uranium 
enrichment enterprise before the transition date shall be 
considered a judgment against and shall be payable solely by 
the Department. As of the privatization date, any judgment 
entered against the Corporation imposing liability arising out 
of the operation of the Corporation from the transition date to 
the privatization date shall be considered a judgment against 
the United States.
          * * * * * * *
  (d) Judgments Based on Operations After Transition and 
Privatization.--Any judgment entered against the Corporation 
arising from operations of the Corporation on or after [the 
transition date] the privatization date (or, in the event the 
privatization date does not occur, the transition date) shall 
be payable solely by the Corporation from its own funds. The 
Corporation shall not be considered a Federal agency for 
purposes of chapter 171 of title 28, United States Code.
          * * * * * * *

SEC. 1408. TRANSFER OF URANIUM.

  The Secretary may, before the privatization date, transfer to 
the Corporation without charge raw uranium, low-enriched 
uranium, and highly enriched uranium.

SEC. [1408.] 1409. PURCHASE OF HIGHLY ENRICHED URANIUM FROM FORMER 
                    SOVIET UNION.

  (a) In General.--The Corporation is authorized to negotiate 
the purchase of all highly enriched uranium made available by 
any State of the former Soviet Union under a government-to-
government agreement or shall assume the obligations of the 
Department under any contractual agreement that has been 
reached with any such State or any private entity before the 
transition date. The Corporation may only purchase this 
material so long as the quality of the material can be made 
suitable for use in commercial reactors.
          * * * * * * *

              CHAPTER 25--PRIVATIZATION OF THE CORPORATION

          * * * * * * *

SEC. 1502. PRIVATIZATION.

  (a) * * *
          * * * * * * *
  (d) Period for Congressional Review.--The Corporation may not 
implement the privatization plan [less than 60 days after 
notification of the Congress] less than 60 days after the date 
of the report to Congress by the Comptroller General under 
subsection (c).

SEC. 1503. ESTABLISHMENT OF PRIVATE CORPORATION.

  (a) Establishment.--
          (1) In general.--In order to facilitate 
        privatization, the Corporation may provide for the 
        establishment of a private corporation organized under 
        the laws of any of the several States. Such corporation 
        shall have among its purposes the following:
                  (A) To help maintain a reliable and 
                economical domestic source of uranium 
                enrichment services.
                  (B) To undertake any and all activities as 
                provided in its corporate charter.
          (2) Authorities.--The corporation established 
        pursuant to paragraph (1) shall be authorized to--
                  (A) enrich uranium, provide for uranium to be 
                enriched by others, or acquire enriched uranium 
                (including low-enriched uranium derived from 
                highly enriched uranium);
                  (B) conduct, or provide for conducting, those 
                research and development activities related to 
                uranium enrichment and related processes and 
                activities the corporation considers necessary 
                or advisable to maintain itself as a commercial 
                enterprise operating on a profitable and 
                efficient basis;
                  (C) enter into transactions regarding 
                uranium, enriched uranium, or depleted uranium 
                with--
                          (i) persons licensed under section 
                        53, 63, 103, or 104 in accordance with 
                        the licenses held by those persons;
                          (ii) persons in accordance with, and 
                        within the period of, an agreement for 
                        cooperation arranged under section 123; 
                        or
                          (iii) persons otherwise authorized by 
                        law to enter into such transactions;
                  (D) enter into contracts with persons 
                licensed under section 53, 63, 103, or 104, for 
                as long as the corporation considers necessary 
                or desirable, to provide uranium or uranium 
                enrichment and related services;
                  (E) enter into contracts to provide uranium 
                or uranium enrichment and related services in 
                accordance with, and within the period of, an 
                agreement for cooperation arranged under 
                section 123 or as otherwise authorized by law; 
                and
                  (F) take any and all such other actions as 
                are permitted by the law of the jurisdiction of 
                incorporation of the corporation.
          (3) Transfer of assets.--For purposes of implementing 
        the privatization, the Corporation may transfer some or 
        all of its assets and obligations to the corporation 
        established pursuant to this section, including--
                  (A) all of the Corporation's assets, 
                including all contracts, agreements, and 
                leases, including all uranium enrichment 
                contracts and power purchase contracts;
                  (B) all funds in accounts of the Corporation 
                held by the Treasury or on deposit with any 
                bank or other financial institution;
                  (C) all of the Corporation's rights, duties, 
                and obligations, accruing subsequent to the 
                privatization date, under the power purchase 
                contracts covered by section 1401(b)(2)(B); and
                  (D) all of the Corporation's rights, duties, 
                and obligations, accruing subsequent to the 
                privatization date, under the lease agreement 
                between the Department and the Corporation 
                executed by the Department and the Corporation 
                pursuant to section 1403.
          (4) Merger or consolidation.--For purposes of 
        implementing the privatization, the Corporation may 
        merge or consolidate with the corporation established 
        pursuant to subsection (a)(1) if such action is 
        contemplated by the plan for privatization approved by 
        the President under section 1502(b). The Board shall 
        have exclusive authority to approve such merger or 
        consolidation and to take all further actions necessary 
        to consummate such merger or consolidation, and no 
        action by or in respect of shareholders shall be 
        required. The merger or consolidation shall be effected 
        in accordance with, and have the effects of a merger or 
        consolidation under, the laws of the jurisdiction of 
        incorporation of the surviving corporation, and all 
        rights and benefits provided under this title to the 
        Corporation shall apply to the surviving corporation as 
        if it were the Corporation.
          (5) Tax treatment of privatization.--
                  (A) Transfer of assets or merger.--No income, 
                gain, or loss shall be recognized by any person 
                by reason of the transfer of the Corporation's 
                assets to, or the Corporation's merger with, 
                the corporation established pursuant to 
                subsection (a)(1) in connection with the 
                privatization.
                  (B) Cancellation of debt and common stock.--
                No income, gain, or loss shall be recognized by 
                any person by reason of any cancellation of any 
                obligation or common stock of the Corporation 
                in connection with the privatization.
  (b) OSHA Requirements.--For purposes of the regulation of 
radiological and nonradiological hazards under the Occupational 
Safety and Health Act of 1970, the corporation established 
pursuant to subsection (a)(1) shall be treated in the same 
manner as other employers licensed by the Nuclear Regulatory 
Commission. Any interagency agreement entered into between the 
Nuclear Regulatory Commission and the Occupational Safety and 
Health Administration governing the scope of their respective 
regulatory authorities shall apply to the corporation as if the 
corporation were a Nuclear Regulatory Commission licensee.
  (c) Legal Status of Private Corporation.--
          (1) Not federal agency.--The corporation established 
        pursuant to subsection (a)(1) shall not be an agency, 
        instrumentality, or establishment of the United States 
        Government and shall not be a Government corporation or 
        Government-controlled corporation.
          (2) No recourse against united states.--Obligations 
        of the corporation established pursuant to subsection 
        (a)(1) shall not be obligations of, or guaranteed as to 
        principal or interest by, the Corporation or the United 
        States, and the obligations shall so plainly state.
          (3) No claims court jurisdiction.--No action under 
        section 1491 of title 28, United States Code, shall be 
        allowable against the United States based on the 
        actions of the corporation established pursuant to 
        subsection (a)(1).
  (d) Board of Director's Election After Public Offering.--In 
the event that the privatization is implemented by means of a 
public offering, an election of the members of the board of 
directors of the Corporation by the shareholders shall be 
conducted before the end of the 1-year period beginning the 
date shares are first offered to the public pursuant to such 
public offering.
  (e) Adequate Proceeds.--The Secretary of Energy shall not 
allow the privatization of the Corporation unless before the 
sale date the Secretary determines that the estimated sum of 
the gross proceeds from the sale of the Corporation will be an 
adequate amount.

SEC. 1504. OWNERSHIP LIMITATIONS.

  (a) Securities Limitation.--In the event that the 
privatization is implemented by means of a public offering, 
during a period of 3 years beginning on the privatization date, 
no person, directly or indirectly, may acquire or hold 
securities representing more than 10 percent of the total votes 
of all outstanding voting securities of the Corporation.
  (b) Application.--Subsection (a) shall not apply--
          (1) to any employee stock ownership plan of the 
        Corporation,
          (2) to underwriting syndicates holding shares for 
        resale, or
          (3) in the case of shares beneficially held for 
        others, to commercial banks, broker-dealers, clearing 
        corporations, or other nominees.
  (c) No director, officer, or employee of the Corporation may 
acquire any securities, or any right to acquire securities, of 
the Corporation--
          (1) in the public offering of securities of the 
        Corporation in the implementation of the privatization,
          (2) pursuant to any agreement, arrangement, or 
        understanding entered into before the privatization 
        date, or
          (3) before the election of directors of the 
        Corporation under section 1503(d) on any terms more 
        favorable than those offered to the general public.

SEC. 1505. EXEMPTION FROM LIABILITY.

  (a) In General.--No director, officer, employee, or agent of 
the Corporation shall be liable, for money damages or 
otherwise, to any party if, with respect to the subject matter 
of the action, suit, or proceeding, such person was fulfilling 
a duty, in connection with any action taken in connection with 
the privatization, which such person in good faith reasonably 
believed to be required by law or vested in such person.
  (b) Exception.--The privatization shall be subject to the 
Securities Act of 1933 and the Securities Exchange Act of 1934. 
The exemption set forth in subsection (a) shall not apply to 
claims arising under such Acts or under the Constitution or 
laws of any State, territory, or possession of the United 
States relating to transactions in securities, which claims are 
in connection with a public offering implementing the 
privatization.

SEC. 1506. RESOLUTION OF CERTAIN ISSUES.

  (a) Corporation Actions.--Notwithstanding any provision of 
any agreement to which the Corporation is a party, the 
Corporation shall not be considered to be in breach, default, 
or violation of any such agreement because of any provision of 
this chapter or any action the Corporation is required to take 
under this chapter.
  (b) Right To Sue Withdrawn.--The United States hereby 
withdraws any stated or implied consent for the United States, 
or any agent or officer of the United States, to be sued by any 
person for any legal, equitable, or other relief with respect 
to any claim arising out of, or resulting from, acts or 
omissions under this chapter.

SEC. 1507. APPLICATION OF PRIVATIZATION PROCEEDS.

  The proceeds from the privatization shall be included in the 
budget baseline required by the Balanced Budget and Emergency 
Deficit Control Act of 1985 and shall be counted as an offset 
to direct spending for purposes of section 252 of such Act, 
notwithstanding section 257(e) of such Act.

 CHAPTER 26--AVLIS AND ALTERNATIVE TECHNOLOGIES FOR URANIUM ENRICHMENT

[SEC. 1601. ASSESSMENT BY UNITED STATES ENRICHMENT CORPORATION.

  [(a) In General.--The Corporation shall prepare an assessment 
of the economic viability of proceeding with the 
commercialization of AVLIS and alternative technologies for 
uranium enrichment in accordance with this chapter. The 
assessment shall include--
          [(1) an evaluation of market conditions together with 
        a marketing strategy;
          [(2) an analysis of the economic viability of 
        competing enrichment technologies;
          [(3) an identification of predeployment and capital 
        requirements for the commercialization of AVLIS and 
        alternative technologies for uranium enrichment;
          [(4) an estimate of potential earnings from the 
        licensing of AVLIS and alternative technologies for 
        uranium enrichment to a private government sponsored 
        corporation;
          [(5) an analysis of outstanding and potential patent 
        and related claims with respect to AVLIS and 
        alternative technologies for uranium enrichment, and a 
        plan for resolving such claims; and
          [(6) a contingency plan for providing enriched 
        uranium and related services in the event that 
        deployment of AVLIS and alternative technologies for 
        uranium enrichment is determined not to be economically 
        viable.
  [(b) Determination by Corporation To Proceed With 
Commercialization of AVLIS or Alternative Technologies for 
Uranium Enrichment.--The succeeding sections of this chapter 
shall apply only to the extent the Corporation determines in 
its business judgment, on the basis of the assessment prepared 
under subsection (a), to proceed with the commercialization of 
AVLIS or alternative technologies for uranium enrichment.]
          * * * * * * *

[SEC. 1603. PREDEPLOYMENT ACTIVITIES BY UNITED STATES ENRICHMENT 
                    CORPORATION.

  [The Corporation may begin activities necessary to prepare 
AVLIS or alternative technologies for uranium enrichment for 
commercialization including--
          [(1) completion of preapplication activities with the 
        Nuclear Regulatory Commission;
          [(2) preparation of a transition plan to move AVLIS 
        or alternative technologies for uranium enrichment from 
        the laboratory to the marketplace;
          [(3) confirmation of technical performance;
          [(4) validation of economic projections;
          [(5) completion of feasibility and risk studies;
          [(6) initiation of preliminary plant design and 
        engineering; and
          [(7) site selection, site characterization, and 
        environmental documentation activities on the basis of 
        site evaluations and recommendations prepared for the 
        Department by the Argonne National Laboratory.

[SEC. 1604. UNITED STATES ENRICHMENT CORPORATION SPONSORSHIP OF PRIVATE 
                    FOR-PROFIT CORPORATION TO CONSTRUCT AVLIS AND 
                    ALTERNATIVE TECHNOLOGIES FOR URANIUM ENRICHMENT.

  [(a) Establishment.--
          [(1) In general.--If the Corporation determines to 
        proceed with the commercialization of AVLIS or 
        alternative technologies for uranium enrichment under 
        this chapter, the Corporation may provide for the 
        establishment of a private for-profit corporation, 
        which shall have as its initial purpose the 
        construction of a uranium enrichment facility using 
        AVLIS technology or alternative technologies for 
        uranium enrichment.
          [(2) Process of organization.--For purposes of the 
        establishment of the private corporation under 
        paragraph (1), the Corporation shall appoint not less 
        than 3 persons to be incorporators. The incorporators 
        so appointed shall each sign the articles of 
        incorporation and shall serve as the initial board of 
        directors until the members of the 1st regular board of 
        directors shall have been appointed and elected. Such 
        incorporators shall take whatever actions are necessary 
        or appropriate to establish the private corporation, 
        including the filing of articles of incorporation in 
        such jurisdiction as the incorporators determine to be 
        appropriate. The incorporators shall also develop a 
        plan for the issuance by the private corporation of 
        voting common stock to the public, which plan shall be 
        subject to the approval of the Secretary of the 
        Treasury.
  [(b) Legal Status of Private Corporation.--
          [(1) Not federal agency.--The private corporation 
        established under subsection (a) shall not be an 
        agency, instrumentality, or establishment of the United 
        States Government and shall not be a Government 
        corporation or Government controlled corporation.
          [(2) No recourse against united states.--Obligations 
        of the private corporation established under subsection 
        (a) 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 claims court jurisdiction.--No action under 
        section 1491 of title 28, United States Code, shall be 
        allowable against the United States based on the 
        actions of the private corporation established under 
        subsection (a).
  [(c) Transactions Between United States Enrichment 
Corporation and Private Corporation.--
          [(1) Grants from usec.--The Corporation may make 
        grants to the private corporation established under 
        subsection (a) from amounts available in the AVLIS 
        Commercialization Fund. Such grants shall be used by 
        the private corporation to carry out any remaining 
        predeployment activity assigned to the private 
        corporation by the Corporation. Such grants may not be 
        used for the costs of constructing an AVLIS, or 
        alternative technologies for uranium enrichment, 
        production facility or engaging in directly related 
        preconstruction activities (other than such assigned 
        predeployment activities). The aggregate amount of such 
        grants shall not exceed $364,000,000.
          [(2) Licensing agreement.--The Corporation shall 
        license to the private corporation established under 
        subsection (a) the rights, titles, and interests 
        provided to the Corporation under section 1602. The 
        licensing agreement shall require the private 
        corporation to make periodic payments to the 
        Corporation in an amount that is not less than the 
        aggregate amounts paid by the Corporation during the 
        period involved under subsections (a) and (c) of 
        section 1602.
          [(3) Purchase agreement.--The Corporation may enter 
        into a commitment to purchase all enriched uranium 
        produced at an AVLIS, or alternative technologies for 
        uranium enrichment, facility of the private corporation 
        established under subsection (a) at a price negotiated 
        by the 2 corporations that--
                  [(A) provides the private corporation with a 
                reasonable return on its investment; and
                  [(B) is less costly than enriched uranium 
                available from other sources.
          [(4) Additional assistance.--The Corporation may 
        provide to the private corporation established under 
        subsection (a), on a reimbursable basis, such 
        additional personnel, services, and equipment as the 2 
        corporations may determine to be appropriate.

[SEC. 1605. AVLIS COMMERCIALIZATION FUND WITHIN UNITED STATES 
                    ENRICHMENT CORPORATION.

  [(a) Establishment.--The Corporation may establish within the 
Corporation an AVLIS Commercialization Fund, which shall 
consist of not more than $364,000,000 paid into the Fund by the 
Corporation from amounts provided in appropriation Acts for 
such purposes and from the retained earnings of the 
Corporation.
  [(b) Expenditures From Fund.--Amounts in the AVLIS 
Commercialization Fund shall be available for--
          [(1) expenses of the Corporation in preparing the 
        assessment under section 1601;
          [(2) expenses of predeployment activities under 
        section 1603; and
          [(3) grants to the private corporation under section 
        1604.
  [(c) Limitations.--
          [(1) Exclusive source of funds.--The Corporation may 
        not incur any obligation, or expend any amount, with 
        respect to AVLIS or alternative technologies for 
        uranium enrichment, except from amounts available in 
        the AVLIS Commercialization Fund.
          [(2) Unavailable for construction costs.--No amount 
        may be used from the AVLIS Commercialization Fund for 
        the costs of constructing an AVLIS, or alternative 
        technologies for uranium enrichment, production 
        facility or engaging in directly related 
        preconstruction activities (other than activities 
        specified in subsection (b)).
  [(d) Authorization of Appropriations.--There is authorized to 
be appropriated $364,000,000 from the Uranium Enrichment 
Special Fund for purposes of this section.
  [(e) Cost Report.--On the basis of the assessment under 
section 1601(a)(3), the Corporation shall submit to the 
Congress a report on the capital requirements for 
commercialization of AVLIS.

[SEC. 1606. DEPARTMENT RESEARCH AND DEVELOPMENT ASSISTANCE.

  [If requested by the Corporation, the Secretary shall 
provide, on a reimbursable basis, research and development of 
AVLIS and alternative technologies for uranium enrichment.

[SEC. 1607. SITE SELECTION.

  [This chapter shall not prejudice consideration of the site 
of an existing uranium enrichment facility as a candidate site 
for future expansion or replacement of uranium enrichment 
capacity through AVLIS or alternative technologies for uranium 
enrichment. Selection of a site for the AVLIS, or alternative 
technologies for uranium enrichment, facility shall be made on 
a competitive basis, taking into consideration economic 
performance, environmental compatibility, and use of any 
existing uranium enrichment facilities.]
          * * * * * * *

 CHAPTER 27--LICENSING AND REGULATION OF URANIUM ENRICHMENT FACILITIES

 H4  deg.SEC. 1701. GASEOUS DIFFUSION FACILITIES.

  (a) * * *
          * * * * * * *
  (c) Certification Process.--
          (1) * * *
          (2) [Annual application for certificate of 
        compliance.--The Corporation shall apply at least 
        annually to the Nuclear Regulatory Commission for a 
        certificate of compliance under paragraph (1).] 
        Periodic application for certificate of compliance.--
        The Corporation shall apply to the Nuclear Regulatory 
        Commission for a certificate of compliance under 
        paragraph (1) periodically, as determined by the 
        Nuclear Regulatory Commission, but not less than every 
        5 years. The Nuclear Regulatory Commission, in 
        consultation with the Environmental Protection Agency, 
        shall review any such application and any determination 
        made under subsection (b)(2) shall be based on the 
        results of any such review.
          * * * * * * *

 H4  deg.SEC. 1702. LICENSING OF OTHER TECHNOLOGIES.

  (a) In General.--Corporation facilities using alternative 
technologies for uranium enrichment, [other than] including 
AVLIS, shall be licensed under sections 53 and 63.
          * * * * * * *
                              ----------                              


             SECTION 1018 OF THE ENERGY POLICY ACT OF 1992

SEC. 1018. DEFINITIONS.

  For purposes of this subtitle:
          (1) The term ``Corporation'' means [the United States 
        Enrichment Corporation established under section 1301 
        of the Atomic Energy Act of 1954, as added by this 
        Act.] the corporation referred to in section 1201(4) of 
        the Atomic Energy Act of 1954.
          * * * * * * *
                              ----------                              


              SECTION 9101 OF TITLE 31, UNITED STATES CODE

Sec. 9101. Definitions

  In this chapter--
          (1) * * *
          * * * * * * *
          (3) ``wholly owned Government corporation'' means--
                  (A) * * *
          * * * * * * *
                  [(N) the Uranium Enrichment Corporation.]
          * * * * * * *
                             MINORITY VIEWS

                 H.R. 1216--``USEC Privatization Act''

    Privatization of the U.S. Uranium Enrichment Corporation is 
a major priority, both in terms of fulfilling the objectives of 
current law and in terms of the impact which the sale of this 
government asset will have on the budget.
    In the majority's rush to generate revenues to finance tax 
cuts, however, the Committee allowed itself to be swept up in a 
hasty and imprudent process. As a result, the Committee and the 
Congress are largely in the dark as to whether, in fact, we 
have done our duty to the American taxpayer by ensuring that 
the Corporation will be sold on optimal terms.
    The Corporation was established pursuant to the Energy 
Policy Act of 1992, legislation which was enacted on a 
bipartisan basis. In order to improve its prospects for a 
successful transition to private ownership, the Corporation has 
asked Congress to amend the law in several respects.
    Owing to the complexity of the issue, and changed 
circumstances since 1992, the effects of any such amendments 
are unclear, both in terms of prospects for privatization and 
the impact on the taxpayer. As a result, it is important that 
the Committee consider these proposals carefully. Moreover, 
there is no reason this work should not be done in a bipartisan 
fashion.
    In view of this, it is particularly regrettable that the 
Committee rushed consideration of this legislation. There have 
been no legislative hearings on H.R. 1216 or other proposed 
amendments. In fact, responses to Chairman Schaefer's questions 
following a February 24 oversight hearing on the Corporation 
have not been received, leaving the record incomplete. To make 
matters worse, H.R. 1216 was introduced less than forty-eight 
hours before the markup, the Subcommittee on Energy and Power 
was discharged of its duties, and there was little time for 
review of amendments--some of which were offered to correct 
errors in H.R. 1216 itself.
    As a result, the bill does not address the major issues 
which the Corporation and Chairman Schaefer's unanswered 
letters raise, and which need to be resolved if we are to give 
the complicated issues surrounding privatization the 
consideration they require. These matters include application 
of the antitrust laws, rights to sensitive technology, and 
disposition of recycled Soviet weapons materials under a 
contract the Corporation entered into in 1994, including the 
difficult issue of matched sales.
    Why this rush? Certainly the sale of a government asset 
valued in the billions deserves more careful attention than 
this process provided. The explanation lies in the majority's 
blind rush to generate savings and proceeds to finance its 
planned tax cuts, on a schedule which precludes rational 
consideration by the Committee. From what we can discern from 
press reports, those Republican tax cuts are intended primarily 
to benefit the wealthiest few at the expense of ordinary middle 
class Americans. In the absence of a better use to which to put 
these privatization funds, most minority members supported an 
amendment offered by Mr. Brown which would have directed the 
proceeds from the sale of the Corporation towards deficit 
reduction.
    The minority objects to the unfair and unwise process by 
which the Committee reported H.R. 1216, and in particular to 
being deprived of any real opportunity to ensure that American 
taxpayers are not cheated out of the benefits which ought to 
flow from the sale of a substantial government asset. It is an 
odd day indeed when, in the name of tax reduction, we instead 
put the taxpayer's interests at risk through careless 
legislating.

                                   John D. Dingell.
                                   Henry A. Waxman.
                                   Edward J. Markey.
                                   Billy Tauzin.
                                   Ron Wyden.
                                   Ralph M. Hall.
                                   John Bryant.
                                   Rich Boucher.
                                   Thomas J. Manton.
                                   Edolphus Towns.
                                   Gerry E. Studds.
                                   Frank Pallone, Jr.
                                   Sherrod Brown.
                                   Blanche Lambert Lincoln.
                                   Bart Gordon.
                                   Elizabeth Furse.
                                   Peter Deutsch.
                                   Bobby L. Rush.
                                   Anna G. Eshoo.
                                   Ron Klink.
                                   Bart Stupak.