[Senate Report 104-173]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 244
104th Congress                                                   Report
                                 SENATE

 1st Session                                                    104-173
_______________________________________________________________________


 
                         USEC PRIVATIZATION ACT

                                _______


   November 17 (legislative day, November 16), 1995.--Ordered to be 
                                printed

_______________________________________________________________________


  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 755]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 755) to amend the Atomic Energy Act of 
1954 to provide for the privatization of the United States 
Enrichment Corporation, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill, as amended, do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SEC. 1. SHORT TITLE.

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

SEC. 2. PURPOSE.

    The purpose of this chapter is to transfer the interest of the 
United States in the United States Enrichment Corporation to the 
private sector in a manner that provides for the long-term viability of 
the Corporation, provides for the continuation by the Corporation of 
the operation of the Department of Energy's gaseous diffusion plants, 
provides for the protection of the public interest in maintaining a 
reliable and economical domestic source of uranium mining and 
enrichment services, and, to the extent not inconsistent with such 
purposes, secures the maximum proceeds to the United States.

SEC. 3. DEFINITIONS.

    For purposes of this title:
          (1) The term ``AVLIS'' means atomic vapor laser isotope 
        separation technology.
          (2) The term ``Corporation'' means the United States 
        Enrichment Corporation and, unless the context otherwise 
        requires, includes the private corporation and any successor 
        thereto following privatization.
          (3) The term ``gaseous diffusion plants'' means the Paducah 
        Gaseous Diffusion Plant at Paducah, Kentucky and the Portsmouth 
        Gaseous Diffusion Plant at Piketon, Ohio.
          (4) The term ``highly enriched uranium'' means uranium 
        enriched to 20 percent or more of the uranium-235 isotope.
          (5) The term ``low-enriched uranium'' means uranium enriched 
        to less than 20 percent of the uranium-235 isotope, including 
        that which is derived from highly enriched uranium.
          (6) The term ``low-level radioactive waste'' has the meaning 
        given such term in section 2(9) of the Low-Level Radioactive 
        Waste Policy Act (42 U.S.C. 2021b(9)).
          (7) The term ``private corporation'' means the corporation 
        established under section 5.
          (8) The term ``privatization'' means the transfer of 
        ownership of the Corporation to private investors.
          (9) The term ``privatization date'' means the date on which 
        100 percent of the ownership of the Corporation has been 
        transferred to private investors.
          (10) The term ``public offering'' means an underwritten 
        offering to the public of the common stock of the private 
        corporation pursuant to section 4.
          (11) The ``Russian HEU Agreement'' means the Agreement 
        Between the Government of the United States of America and the 
        Government of the Russian Federation Concerning the Disposition 
        of Highly Enriched Uranium Extracted from Nuclear Weapons, 
        dated February 18, 1993.
          (12) The term ``Secretary'' means the Secretary of Energy.
          (13) The ``Suspension Agreement'' means the Agreement to 
        Suspend the Antidumping Investigation on Uranium from the 
        Russian Federation, as amended.
          (14) The term ``uranium enrichment'' means the separation of 
        uranium of a given isotopic content into 2 components, 1 having 
        a higher percentage of a fissile isotope and 1 having a lower 
        percentage.

SEC. 4. SALE OF THE CORPORATION.

    (a) Authorization.--The Board of Directors of the Corporation, with 
the approval of the Secretary of the Treasury, shall transfer ownership 
of the assets and obligations of the Corporation to the private 
corporation established under section 5 (which may be consummated 
through a merger or consolidation effected in accordance with, and 
having the effects provided under, the laws of the state of 
incorporation of the private corporation, as if the Corporation were 
incorporated thereunder).
    (b) Board Determination.--The Board, with the approval of the 
Secretary of the Treasury, shall select the method of transfer and 
establish terms and conditions for the transfer that will provide the 
maximum proceeds to the Treasury of the United States and will provide 
for the long-term viability of the private corporation, the continued 
operation of the gaseous diffusion plants, and the public interest in 
maintaining a reliable and economical domestic uranium mining and 
enrichment industries.
    (c) Application of Securities Law.--Any offering or sale of 
securities by the private corporation shall be subject to the 
Securities Act of 1933 (15 U.S.C. 77a et seq.) the Securities Exchange 
Act of 1934 (15 U.S.C. 78a et seq.), and the provisions of the 
Constitution and laws of any State, territory, or possession of the 
United States relating to transaction in securities.
    (d) Proceeds.--Proceeds from the sale of the United States' 
interest in the Corporation shall be--
          (1) deposited in the general fund of the Treasury;
          (2) included in the budget baseline required by the Balanced 
        Budget and Emergency Deficit Control Act of 1985; and
          (3) counted as an offset to direct spending for purposes of 
        section 252 of such Act, notwithstanding section 257(e) of such 
        Act.
    (e) Expenses.--Expenses of privatization shall be paid from 
Corporation revenue accounts in the United States Treasury.

SEC. 5. ESTABLISHMENT OF PRIVATE CORPORATION.

    (a) Incorporation.--(1) The directors of the Corporation shall 
establish a private for-profit corporation under the laws of a state 
for the purpose of receiving the assets and obligations of the 
Corporation at privatization and continuing the business operations of 
the Corporation following privatization.
    (2) The directors of the Corporation may serve as incorporators of 
the private corporation and shall take all steps necessary to establish 
the private corporation, including the filing articles of incorporation 
consistent with the provisions of this Act.
    (3) Employees and officers of the Corporation (including members of 
the Board of Directors) acting in accordance with this section on 
behalf of the private corporation shall be deemed to be acting in their 
official capacities as employees or officers of the Corporation for 
purposes of 18 U.S.C. 205.
    (b) Status of the Private Corporation.--(1) The private corporation 
shall not be an agency, instrumentality, or establishment of the United 
States, a Government corporation, or a Government-controlled 
corporation.
    (2) Except as otherwise provided by this Act, financial obligations 
of the private corporation shall not be obligations of, or guaranteed 
as to principal or interest by, the Corporation or the United States, 
and the obligations shall so plainly state.
    (3) No action under section 1491 of title 28, United States Code, 
shall be allowable against the United States based on actions of the 
private corporation.
    (c) Application of Post-Government Employment Restrictions.--
Beginning on the privatization date, the restrictions of 18 U.S.C. 
207(a), (b), (c), and (d) shall not apply to the acts of an individual 
done in carrying out official duties as a director, officer, or 
employee of the private corporation, if the individual was an officer 
or employee of the Corporation (including a director) continuously 
during the 45 days prior to the privatization date.
    (d) Dissolution.--In the event that the privatization does not 
occur, the Corporation will provide for the dissolution of the private 
corporation within 1 year of the private corporation's incorporation 
unless the Secretary of the Treasury or his delegate, upon the 
Corporation's request, agrees to delay any such dissolution for an 
additional year.

SEC. 6. TRANSFERS TO THE PRIVATE CORPORATION.

    Concurrent with privatization, the Corporation shall transfer to 
the private corporation--
          (1) the lease of the gaseous diffusion plants in accordance 
        with section 7,
          (2) all personal property and inventories of the Corporation,
          (3) all contracts, agreements, and leases under section 8(a),
          (4) the Corporation's right to purchase power from the 
        Secretary under section 8(b),
          (5) such funds in accounts of the Corporation held by the 
        Treasury or on deposit with any bank or other financial 
        institution as approved by the Secretary of the Treasury, and
          (6) all of the Corporation's records, including all of the 
        papers and other documentary materials, regardless of physical 
        form or characteristics, made or received by the Corporation.

SEC. 7. LEASING OF GASEOUS DIFFUSION FACILITIES.

    (a) Transfer of Lease.--Concurrent with privatization, the 
Corporation shall transfer to the private corporation the lease of the 
gaseous diffusion plants and related property for the remainder of the 
term of such lease in accordance with the terms of such lease.
    (b) Renewal.--The private corporation shall have the exclusive 
option to lease the gaseous diffusion plants and related property for 
additional periods following the expiration of the initial term of the 
lease.
    (c) Exclusion of Facilities for Production of Highly Enriched 
Uranium.--The Secretary shall not lease to the private corporation any 
facilities necessary for the production of highly enriched uranium but 
may, subject to the requirements of the Atomic Energy Act of 1954 (42 
U.S.C. 2011 et seq.), grant the Corporation access to such facilities 
for purposes other than the production of highly enriched uranium.
    (d) DOE Responsibility for Preexisting Conditions.--The payment of 
any costs of decontamination and decommissioning, response actions, or 
corrective actions with respect to conditions existing before July 1, 
1993 at the gaseous diffusion plants shall remain the sole 
responsibility of the Secretary.
    (e) Environmental Audit.--For purposes of subsection (d), the 
conditions existing before July 1, 1993 at the gaseous diffusion plants 
shall be determined from the environmental audit conducted pursuant to 
section 1403(e) of the Atomic Energy Act of 1954 (42 U.S.C. 2297c-
2(e)).
    (f) Treatment Under Price-Anderson Provisions.--Any lease executed 
between the Secretary and the Corporation or the private corporation, 
and any extension or renewal thereof, under this section shall be 
deemed to be a contract for purposes of section 170d. of the Atomic 
Energy Act of 1954 (42 U.S.C. 2210(d)).
    (g) Waiver of EIS Requirement.--The execution or transfer of the 
lease between the Secretary and the Corporation or the private 
corporation, and any extension or renewal thereof, shall not be 
considered a major Federal action significantly affecting the quality 
of the human environment for purposes of section 102 of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332).

SEC. 8. TRANSFER OF CONTRACTS.

    (a) Transfer of Contracts.--Concurrent with privatization, the 
Corporation shall transfer to the private corporation all contracts, 
agreements, and leases, including all uranium enrichment contracts, 
that were--
          (1) transferred by the Secretary to the Corporation pursuant 
        to section 1401(b) of the Atomic Energy Act of 1954 (42 U.S.C. 
        2297c(b)), or
          (2) entered into by the Corporation before the privatization 
        date.
    (b) Nontransferable Power Contracts.--The Corporation shall 
transfer to the private corporation the right to purchase power from 
the Secretary under the power purchase contracts for the gaseous 
diffusion plants executed by the Secretary before July 1, 1993. The 
Secretary shall continue to receive power for the gaseous diffusion 
plants under such contracts and shall continue to resell such power to 
the private corporation at cost during the term of such contracts.
    (c) Effect of Transfer.--(1) Notwithstanding subsection (a), the 
United States shall remain obligated to the parties to the contracts, 
agreements, and leases transferred under subsection (a) for the 
performance of its obligations under such contracts, agreements, or 
leases during their terms. Performance of such obligations by the 
private corporation shall be considered performance by the United 
States.
    (2) If a contract, agreement, or lease transferred under subsection 
(a) is terminated, extended, or materially amended after the 
privatization date--
          (A) the private corporation shall be responsible for any 
        obligation arising under such contract, agreement, or lease 
        after any extension or material amendment, and
          (B) the United States shall be responsible for any obligation 
        arising under the contract, agreement, or lease before the 
        termination, extension, or material amendment.
    (3) The private corporation shall reimburse the United States for 
any amount paid by the United States under a settlement agreement 
entered into with the consent of the private corporation or under a 
judgment, if the settlement or judgment--
          (A) arises out of an obligation under a contract, agreement, 
        or lease transferred under subsection (a), and
          (B) arises out of actions of the private corporation between 
        the privatization date and the date of a termination, 
        extension, or material amendment of such contract, agreement, 
        or lease.
    (d) Pricing.--The Corporation may establish prices for its 
products, materials, and services provided to customers on a basis that 
will allow it to attain the normal business objectives of a 
profitmaking corporation.

SEC. 9. LIABILITIES.

    (a) Liability of the United States.--(1) Except as otherwise 
provided in this Act, all liabilities arising out of the operation of 
the uranium enrichment enterprise before July 1, 1993 shall remain the 
direct liabilities of the Secretary.
    (2) Except as provided in subsection (a)(3) or otherwise provided 
in a memorandum of agreement entered into by the Corporation and the 
Office of Management and Budget prior to the privatization date, all 
liabilities arising out of the operation of the Corporation between 
July 1, 1993 and the privatization date shall remain the direct 
liabilities of the United States.
    (3) All liabilities arising out of the disposal of depleted uranium 
generated by the Corporation between July 1, 1993 and the privatization 
date shall become the direct liabilities of the Secretary.
    (4) Any stated or implied consent for the United States, or any 
agent or officer of the United States, to be sued by any person for any 
legal, equitable, or other relief with respect to any claim arising out 
of, or resulting from, the privatization of the Corporation is hereby 
withdrawn.
    (5) To the extent that any claim against the United States under 
this section is of the type otherwise required by federal statute or 
regulation to be presented to a federal agency or official for 
adjudication or review, such claim shall be presented to the Department 
of Energy in accordance with procedures to be established by the 
Secretary. Nothing in this paragraph shall be construed to impose on 
the Department of Energy liability to pay any claim presented pursuant 
to this paragraph.
    (6) The Attorney General shall represent the United States in any 
action seeking to impose liability under this subsection.
    (b) Liability of the Corporation.--Notwithstanding any provision of 
any agreement to which the Corporation is a party, the Corporation 
shall not be considered in breach, default, or violation of any 
agreement because of the transfer of such agreement to the private 
corporation under section 8 or any other action the Corporation is 
required to take under this Act.
    (c) Liability of the Private Corporation.--Except as provided in 
this Act, the private corporation shall be liable for any liabilities 
arising out of its operations after the privatization date.
    (d) Liability of Officers and Directors.--(1) No officer, director, 
employee, or agent of the Corporation shall be liable in any civil 
proceeding to any party in connection with any action taken in 
connection with the privatization if, with respect to the subject 
matter of the action, suit, or proceeding, such person was acting 
within the scope of his employment.
    (2) This subsection shall not apply to claims arising under the 
Securities Act of 1933 (15 U.S.C. 77a et seq.), the Securities Exchange 
Act of 1934 (15 U.S.C. 78a. et seq.), or under the Constitution or laws 
of any State, territory, or possession of the United States relating to 
transactions in securities.

SEC. 10. EMPLOYEE PROTECTIONS.

    (a) Contractor Employees.--(1) Privatization shall not diminish the 
accrued, vested pension benefits of employees of the Corporation's 
operating contractor at the two gaseous diffusion plants.
    (2) In the event that the private corporation terminates or changes 
the contractor at either or both of the gaseous diffusion plants, the 
plan sponsor or other appropriate fiduciary of the pension plan 
covering employees of the prior operating contractor shall arrange for 
the transfer of all plan assets and liabilities relating to accrued 
pension benefits of such plan's participants and beneficiaries from 
such plant to a pension plan sponsored by the new contractor or the 
private corporation or a joint labor-management plan, as the case may 
be.
    (3) In addition to any obligations arising under the National Labor 
Relations Act (29 U.S.C. 151 et seq.), any employer (including the 
private corporation if it operates a gaseous diffusion plant without a 
contractor or any contractor of the private corporation) at a gaseous 
diffusion plant shall--
          (A) abide by the terms of any unexpired collective bargaining 
        agreement covering employees in bargaining units at the plant 
        and in effect on the privatization date until the stated 
        expiration or termination date of the agreement; or
          (B) in the event a collective bargaining agreement is not in 
        effect upon the privatization date, have the same bargaining 
        obligations under section 8(d) of the National labor Relations 
        Act (29 U.S.C. 158(d)) as it had immediately before the 
        privatization date.
    (4) If the private corporation replaces its operating contractor at 
a gaseous diffusion plant, the new employer (including the new 
contractor or the private corporation if it operates a gaseous 
diffusion plant without a contractor) shall--
          (A) offer employment to non-management employees of the 
        predecessor contractor to the extent that their jobs still 
        exist or they are qualified for new jobs, and
          (B) abide by the terms of the predecessor contractor's 
        collective bargaining agreement until the agreement expires or 
        a new agreement is signed.
    (5) In the event of a plant closing or mass layoff (as such terms 
are defined in section 2101(a)(2) and (3) of title 29, United States 
Code) at either of the gaseous diffusion plants, the Secretary of 
Energy shall treat any adversely affected employee of an operating 
contractor at either plant who was an employee at such plant on July 1, 
1993 as a Department of Energy employee for purposes of sections 3161 
and 3162 of the National Defense Authorization Act for Fiscal Year 1993 
(42 U.S.C. 7274h-7274i).
    (6)(A) The Secretary and the private corporation shall cause the 
post-retirement health benefits plan provider (or its successor) to 
continue to provide benefits for persons employed by an operating 
contractor at either of the gaseous diffusion plants in an economically 
efficient manner and at substantially the same level of coverage as 
eligible retirees are entitled to receive on the privatization date.
    (B) Persons eligible for coverage under subparagraph (A) shall be 
limited to:
          (i) Persons who retired from active employment at one of the 
        gaseous diffusion plants on or before the privatization date as 
        vested participants in a pension plan maintained either by the 
        Corporation's operating contractor or by a contractor employed 
        prior to July 1, 1993 by the Department of Energy to operate a 
        gaseous diffusion plant; and
          (ii) Persons who are employed by the Corporation's operating 
        contractor on or before the privatization date and are vested 
        participants in a pension plan maintained either by the 
        Corporation's operating contractor or by a contractor employed 
        prior to July 1, 1993 by the Department of Energy to operate a 
        gaseous diffusion plant.
    (C) The Secretary shall fund the entire cost of post-retirement 
health benefits for persons who retired from employment with an 
operating contractor prior to July 1, 1993.
    (D) The Secretary and the Corporation shall fund the cost of post-
retirement health benefits for persons who retire from employment with 
an operating contractor on or after July 1, 1993 in proportion to the 
retired person's years and months of service at a gaseous diffusion 
plant under their respective management.
    (7)(A) Any suit under this subsection alleging a violation of an 
agreement between an employer and a labor organization shall be brought 
in accordance with section 301 of the Labor Management Relations Act 
(29 U.S.C. 185).
    (B) Any charge under this subsection alleging an unfair labor 
practice violative of section 8 of the National Labor Relations Act (29 
U.S.C. 158) shall be pursued in accordance with section 10 of the 
National Labor Relations Act (29 U.S.C. 160).
    (C) Any suit alleging a violation of any provision of this 
subsection, to the extent it does not allege a violation of the 
National Labor Relations Act may be brought in any district court of 
the United States having jurisdiction over the parties, without regard 
to the amount in controversy or the citizenship of the parties.
    (b) Former Federal Employees.--(1)(A) An employee of the 
Corporation that was subject to either the Civil Service Retirement 
System (CSRS) or the Federal Employees' Retirement System (FERS) on the 
day immediately preceding the privatization date shall elect--
          (i) to retain their coverage under either CSRS or FERS, as 
        applicable, in lieu of coverage by the Corporation's retirement 
        system, or
          (ii) to receive a deferred annuity or lump-sum benefit 
        payable to a terminated employee under CSRS or FERS, as 
        applicable.
    (B) An employee that makes the election under subparagraph (A)(ii) 
shall have the option to transfer the balance in their Thrift Saving 
Plan account to a defined contribution plan under the Corporation's 
retirement system, consistent with applicable law and the terms of the 
Corporation's defined contribution plan.
    (2) The Corporation shall pay to the Civil Service Retirement and 
Disability Fund--
          (A) such employee deductions and agency contributions as are 
        required by sections 8334, 8422, and 8423 of title 5, United 
        States Code, for those employees who elect to retain their 
        coverage under either CSRS or FERS pursuant to paragraph (1);
          (B) such additional agency contributions as are determined 
        necessary by the Office of Personnel Management to pay, in 
        combination with the sums under subparagraph (A), the ``normal 
        cost'' (determined using dynamic assumptions) or retirement 
        benefits for those employees who elect to retain their coverage 
        under CSRS pursuant to paragraph (1), with the concept of 
        ``normal cost'' being used consistent with generally accepted 
        actuarial standards and principles; and
          (C) such additional amounts, not to exceed two percent of the 
        amounts under subparagraphs (A) and (B), as are determined 
        necessary by the Office of Personnel Management to pay the cost 
        of administering retirement benefits for employees who retire 
        from the Corporation after the privatization date under either 
        CSRS or FERS, for their survivors, and for survivors of 
        employees of the Corporation who die after the privatization 
        date (which amounts shall be available to the Office of 
        Personnel Management as provided in section 8348(a)(1)(B) of 
        title 5, United States Code).
    (3) The Corporation shall pay to the Thrift Savings Fund such 
employee and agency contributions as are required by section 8432 of 
title 5, United States Code, for those employees who elect to retain 
their coverage under FERS pursuant to paragraph (1).
    (4) Any employee of the Corporation who was subject to the Federal 
Employee Health Benefits Program (FEHBP) on the day immediately 
preceding the privatization date and who elects to retain coverage 
under either CSRS or FERS pursuant to paragraph (1) shall have the 
option to receive health benefits from a health benefit plan 
established by the Corporation or to continue without interruption 
coverage under the FEHBP, in lieu of coverage by the Corporation's 
health benefit system.
    (5) The Corporation shall pay to the Employees Health Benefits 
Fund--
          (A) such employee deductions and agency contributions as are 
        required by section 8906(a)-(f) of title 5, United States Code, 
        for those employees who elect to retain their coverage under 
        FEHBP pursuant to paragraph (4); and
          (B) such amounts as are determined necessary by the Office of 
        Personnel Management under paragraph (6) to reimburse the 
        Office of Personnel Management for contributions under section 
        8906(g)(1) of title 5, United States Code, of those employees 
        who elect to retain their coverage under FEHBP pursuant to 
        paragraph (4).
    (6) The amounts required under paragraph (5)(B) shall pay the 
Government contributions for retired employees who retire from the 
Corporation after the privatization date under either CSRS or FERS, for 
survivors of such retired employees, and for survivors of employees of 
the Corporation who die after the privatization date, with said amounts 
prorated to reflect only that portion of the total service of such 
employees and retired persons that was performed for the Corporation 
after the privatization date.

SEC. 11. OWNERSHIP LIMITATIONS.

    No director, officer, or employee of the Corporation may acquire 
any securities, or any rights to acquire any securities of the private 
corporation on terms more favorable than those offered to the general 
public--
          (1) in a public offering designed to transfer ownership of 
        the Corporation to private investors,
          (2) pursuant to any agreement, arrangement, or understanding 
        entered into before the privatization date, or
          (3) before the election of the directors of the private 
        corporation.

SEC. 12. URANIUM TRANSFERS AND SALES.

    (a) Transfers and Sales by the Secretary.--The Secretary shall not 
provide enrichment services or transfer or sell any uranium (including 
natural uranium concentrates, natural uranium hexafluoride, or enriched 
uranium in any form) to any person except as consistent with this 
section.
    (b) Russian HEU.--(1) On or before December 31, 1996, the United 
States Executive Agent under the Russian HEU Agreement shall transfer 
to the Secretary without charge title to an amount of uranium 
hexafluoride equivalent to the natural uranium component of low-
enriched uranium derived from at least 18 metric tons of highly 
enriched uranium purchased from the Russian Executive Agent under the 
Russian HEU Agreement. The quantity of such uranium hexafluoride 
delivered to the Secretary shall be based on a tails assay of 0.30 
U\235\. Uranium hexafluoride transferred to the Secretary pursuant to 
this paragraph shall be deemed under United States law, for all 
purposes to be of Russian origin.
    (2) Within 7 years of the date of enactment of this Act, the 
Secretary shall sell, and receive payment for, the uranium hexafluoride 
transferred to the Secretary pursuant to paragraph (1). Such uranium 
hexafluoride shall be sold--
          (A) at any time for use in the United States for the purpose 
        of overfeeding;
          (B) at any time for end use outside the United States; or,
          (C) in calendar year 2001 for consumption by end users in the 
        United States not prior to January 1, 2002, in volumes not to 
        exceed 3,000,000 pounds U3O8 equivalent per year.
    (3) With respect to all enriched uranium delivered to the United 
States Executive Agent under the Russian HEU Agreement on or after 
January 1, 1997, the United States Executive Agent shall, upon request 
of the Russian Executive Agent, enter into an agreement to deliver 
concurrently to the Russian Executive Agent an amount of uranium 
hexafluoride equivalent to the natural uranium component of such 
uranium. An agreement executed pursuant to a request of the Russian 
Executive Agent, as contemplated in this paragraph, may pertain to any 
deliveries due during any period remaining under the Russian HEU 
Agreement. The quantity of such uranium hexafluoride delivered to the 
Russian Executive Agent shall be based on a tails assay of 0.30 U\235\. 
Title to uranium hexafluoride delivered to the Russian Executive Agent 
pursuant to this paragraph shall transfer to the Russian Executive 
Agent upon delivery of such material to the Russian Executive Agent, 
with such delivery to take place at a North American facility 
designated by the Russian Executive Agent. Uranium hexafluoride 
delivered to the Russian Executive Agent pursuant to this paragraph 
shall be deemed under United States law for all purposes to be of 
Russian origin. Such uranium hexafluoride may be sold to any person or 
entity for delivery and use in the United States only as permitted in 
subsections (b)(5), (b)(6) and (b)(7) of this section.
    (4) In the event that the Russian Executive Agent does not exercise 
its right to enter into an agreement to take delivery of the natural 
uranium component of any low-enriched uranium, as contemplated in 
paragraph (3), within 90 days of the date such low-enriched uranium is 
delivered to the United States Executive Agent, then the United States 
Executive Agent shall engage an independent entity through a 
competitive selection process to auction an amount of uranium 
hexafluoride or U3O8 (in the event that the conversion 
component of such hexafluoride has previously been sold) equivalent to 
the natural uranium component of such low-enriched uranium. Such 
independent entity shall sell such uranium hexafluoride in one or more 
lots to any person or entity to maximize the proceeds from such sales, 
for disposition consistent with the limitations set forth in this 
subsection. The independent entity shall pay to the Russian Executive 
Agent the proceeds of any such auction less all reasonable transaction 
and other administrative costs. The quantity of such uranium 
hexafluoride auctioned shall be based on a tails assay of 0.30 U\235\. 
Title to uranium hexafluoride auctioned pursuant to this paragraph 
shall transfer to the buyer of such material upon delivery of such 
material to the buyer. Uranium hexafluoride auctioned pursuant to this 
paragraph shall be deemed under United States law for all purposes to 
be of Russian origin.
    (5) Except as provided in paragraphs (6) and (7), uranium 
hexafluoride delivered to the Russian Executive Agent under paragraph 
(3) or auctioned pursuant to paragraph (4), may not be delivered for 
consumption by end users in the United States either directly or 
indirectly prior to January 1, 1998 and thereafter only in accordance 
with the following schedule:

                 Annual Maximum Deliveries to End Users

                [Millions lbs. U3O8 equivalent]

Year:
    1998..........................................................     2
    1999..........................................................     4
    2000..........................................................     6
    2001..........................................................     8
    2002..........................................................    10
    2003..........................................................    12
    2004..........................................................    14
    2005..........................................................    16
    2006..........................................................    17
    2007..........................................................    18
    2008..........................................................    19
    2009 and each year thereafter.................................    20

    (6) Uranium hexafluoride delivered to the Russian Executive Agent 
under paragraph (3) or auctioned pursuant to paragraph (4) may be sold 
at any time as Russian-origin natural uranium in a matched sale 
pursuant to the Suspension Agreement, and in such case shall not be 
counted against the annual maximum deliveries set forth in paragraph 
(5).
    (7) Uranium hexafluoride delivered to the Russian Executive Agent 
under paragraph (3) or auctioned pursuant to paragraph (4) may be sold 
at any time for use in the United States for the purpose of overfeeding 
in the operations of enrichment facilities.
    (8) Nothing in this subsection (b) shall restrict the sale of the 
conversion component of such uranium hexafluoride. Material sold 
pursuant to paragraph 5 shall not be swapped, exchanged or loaned.
    (9) The Secretary of Commerce shall have responsibility for the 
administration and enforcement of the limitations set forth in this 
subsection. The Secretary of Commerce may require any person to provide 
any certifications, information, or take any action that may be 
necessary to enforce these limitations. The United States Customs 
Service shall maintain and provide any information required by the 
Secretary of Commerce and shall take any action requested by the 
Secretary of Commerce which is necessary for the administration and 
enforcement of the uranium delivery limitations set forth in this 
section.
    (10) The President shall monitor the actions of the United States 
Executive Agent under the Russian HEU Agreement and shall report to the 
Congress not later than December 31 of each year on the effect the low-
enriched uranium delivered under the Russian HEU Agreement is having on 
the domestic uranium mining, conversion, and enrichment industries, and 
the operation of the gaseous diffusion plants. Such report shall 
include a description of actions taken or proposed to be taken by the 
President to prevent or mitigate any material adverse impact on such 
industries or any loss of employment at the gaseous diffusion plants as 
a result of the Russian HEU Agreement.
    (c) Transfers to the Corporation.--
          (1) The Secretary shall transfer to the Corporation without 
        charge up to 50 metric tons of enriched uranium and up to 7,000 
        metric tons of natural uranium from the Department of Energy's 
        stockpile, subject to the restrictions in subsection (c)(2).
          (2) The Corporation shall not deliver for commercial end use 
        in the United States--
                  (A) any of the uranium transferred under this 
                subsection before January 1, 1998;
                  (B) more than 10 percent of the uranium (by uranium 
                hexafluoride equivalent content) transferred under this 
                subsection or more than 4,000,000 pounds, whichever is 
                less, in any calendar year after 1997; or
                  (C) more than 800,000 separative work units contained 
                in low-enriched uranium transferred under this 
                subsection in any calendar year.
    (d) Inventory Sales.--(1) In addition to the transfers authorized 
under subsections (c) and (e), the Secretary may, from time to time, 
sell natural and low-enriched uranium (including low-enriched uranium 
derived from highly enriched uranium) from the Department of Energy's 
stockpile.
    (2) Except as provided in subsections (b), (c), and (e), no sale or 
transfer of natural or low-enriched uranium shall be made unless--
          (A) the President determines that the material is not 
        necessary to national security needs,
          (B) the Secretary determines that the sale of material will 
        not have material adverse impact on the domestic uranium 
        mining, conversion, or enrichment industry, taking into account 
        the sales of uranium under the Russian HEU Agreement, and the 
        Suspension Agreement, and
          (C) the price paid to the Secretary will not be less than the 
        fair market value of the material.
    (e) Government Transfers.--Notwithstanding subsection (d)(2), the 
Secretary may transfer or sell enriched uranium--
          (1) to a federal agency if the material is transferred for 
        the use of the receiving agency without any resale or transfer 
        to another entity and the material does not meet commercial 
        specifications;
          (2) to any person for national security purposes, as 
        determined by the Secretary; or
          (3) to any state or local agency or nonprofit, charitable, or 
        educational institution for use other than the generation of 
        electricity for commercial use.
    (f) Savings Provision.--Nothing in this Act shall be read to modify 
the terms of the Russian HEU Agreement.

SEC. 13. LOW-LEVEL WASTE.

    (a) Responsibility of DOE.--(1) The Secretary, at the request of 
the generator, shall accept for disposal low-level radioactive waste, 
including depleted uranium if it were ultimately determined to be low-
level radioactive waste, generated by--
          (A) the Corporation as a result of the operations of the 
        gaseous diffusion plants or as a result of the treatment of 
        such wastes at a location other than the gaseous diffusion 
        plants, or
          (B) any person licensed by the Nuclear Regulatory Commission 
        to operate a uranium enrichment facility under sections 53, 63, 
        and 193 of the Atomic Energy Act of 1954 (42 U.S.C. 2073, 2093, 
        and 2243).
    (2) Except as provided in paragraph (3), the generator shall 
reimburse the Secretary for the disposal of low-level radioactive waste 
pursuant to paragraph (1) in an amount equal to the Secretary's costs, 
including a pro rata share of any capital costs, but in no event more 
than an amount equal to that which would be charged by commercial, 
State, regional, or interstate compact entities for disposal of such 
waste.
    (3) In the event depleted uranium were ultimately determined to be 
low-level radioactive waste, the generator shall reimburse the 
Secretary for the disposal of depleted uranium pursuant to paragraph 
(1) in an amount equal to the Secretary's costs, including a pro rata 
share of any capital costs.
    (b) Agreements With Other Persons.--The generator may also enter 
into agreements for the disposal of low-level radioactive waste subject 
to subsection (a) with any person other than the Secretary that is 
authorized by applicable laws and regulations to dispose of such 
wastes.
    (c) State or Interstate Compacts.--Notwithstanding any other 
provision of law, no State or interstate compact shall be liable for 
the treatment, storage, or disposal of any low-level radioactive waste 
(including mixed waste) attributable to the operation, decontamination, 
and decommissioning of any uranium enrichment facility.

SEC. 14. AVLIS.

    (a) Exclusive Right To Commercialize.--The Corporation shall have 
the exclusive commercial right to deploy and use any AVLIS patents, 
processes, and technical information owned or controlled by the 
Government, upon completion of a royalty agreement with the Secretary.
    (b) Transfer of Related Property to Corporation.--
          (1) In general.--To the extent requested by the Corporation 
        and subject to the requirements of the Atomic Energy Act of 
        1954 (42 U.S.C. 2011 et seq.), the President shall transfer 
        without charge to the Corporation all of the right, title, or 
        interest in and to property owned by the United States under 
        control or custody of the Secretary that is directly related to 
        and materially useful in the performance of the Corporation's 
        purposes regarding AVLIS and alternative technologies for 
        uranium enrichment, including--
                  (A) facilities, equipment, and materials for 
                research, development, and demonstration activities; 
                and
                  (B) all other facilities, equipment, materials, 
                processes, patents, technical information of any kind, 
                contracts, agreements, and leases.
          (2) Exception.--Facilities, real estate, improvements, and 
        equipment related to the gaseous diffusion, and gas centrifuge, 
        uranium enrichment programs of the Secretary shall not transfer 
        under paragraph (1)(B).
          (3) Expiration of transfer authority.--The President's 
        authority to transfer property under this subsection shall 
        expire upon the privatization date.
    (c) Liability for Patent and Related Claims.--With respect to any 
right, title, or interest provided to the Corporation under subsection 
(a) or (b), the Corporation shall have sole liability for any payments 
made or awards under section 157 b. (3) of the Atomic Energy Act of 
1954 (42 U.S.C. 2187(b)(3)), or any settlements or judgments involving 
claims for alleged patent infringement. Any royalty agreement under 
subsection (a) of this section shall provide for a reduction of royalty 
payments to the Secretary to offset any payments, awards, settlements, 
or judgments under this subsection.

SEC. 15. GASEOUS DIFFUSION TECHNOLOGY.

    (a) Transfer of Rights.--The Corporation shall have the exclusive 
commercial rights for both uranium enrichment and non-uranium 
enrichment uses of any patents, patent applications, trade secrets, and 
other technical information related to the gaseous diffusion technology 
owned or controlled by the Department of Energy, or by the United 
States but under control or custody of the Department of Energy. The 
Corporation shall enter into an exclusive licensing agreement with the 
Department of Energy providing for--
          (1) the payment of royalties of 3% of the gross, pre-tax 
        revenues realized by the Corporation from its non-uranium 
        enrichment commercial uses of such patents, patent 
        applications, trade secrets, and other technical information,
          (2) the reduction of such royalties to offset any payments, 
        awards, settlements, or judgments rendered against the 
        Corporation in its deployment or licensing of the exclusive 
        commercial rights under this section, and
          (3) the reservation of a non-exclusive, royalty-free right to 
        the United States Government to use such patents, patent 
        applications, trade secrets, and other technical information 
        solely for Governmental purposes.
    (b) Improvements.--New patents, trade secrets, and other technical 
information developed for commercial applications that derive from the 
gaseous diffusion technology initially licensed by the Corporation 
shall be at the Corporations' expense and shall be free from royalties 
to the Department of Energy.

SEC. 16. APPLICATION OF CERTAIN LAWS.

    (a) OSHA.--(1) As of the privatization date, the private 
corporation shall be subject to and comply with the Occupational Safety 
and Health Act of 1970 (29 U.S.C. 651 et seq.).
    (2) The Nuclear Regulatory Commission and the Occupational Safety 
and Health Admiration shall, within 90 days after the date of enactment 
of this Act, enter into a memorandum of agreement to govern the 
exercise of their authority over occupational safety and health hazards 
at the gaseous diffusion plants, including inspection, investigation, 
enforcement, and rulemaking relating to such hazards.
    (b) Antitrust Laws.--For purposes of the antitrust laws, the 
performance by the private corporation of a ``matched import'' contract 
under the Suspension Agreement shall be considered to have occurred 
prior to the privatization date, if at the time of privatization, such 
contract had been agreed to by all parties in all material terms and 
confirmed by the Secretary of Commerce under the Suspension Agreement.
    (c) Energy Reorganization Act Requirements.--(1) The private 
corporation and its contractor shall be subject to the provisions of 
section 211 of the Energy Reorganization Act of 1974 (42 U.S.C. 5851) 
to the same extent as an employer subject to such section.
    (2) With respect to the operation of the facilities leased by the 
private corporation, section 206 of the Energy Reorganization Act of 
1974 (42 U.S.C. 5846) shall apply to the directors and officers of the 
private corporation.

SEC. 17. AMENDMENTS TO THE ATOMIC ENERGY ACT.

    (a) Repeal.--(1) Chapters 22 through 26 of the Atomic Energy Act of 
1954 (42 U.S.C. 2297-2297e-7) are repealed as of the privatization 
date.
    (2) The table of contents of such Act is amended as of the 
privatization date by striking the items referring to sections repealed 
by paragraph (1).
    (b) NRC Licensing.--
          (1) Section 11v. of the Atomic Energy Act of 1954 (42 U.S.C. 
        2014v.) is amended by striking ``or the construction and 
        operation of a uranium enrichment facility using Atomic Vapor 
        Laser Isotope Separation technology''.
          (2) Section 193 of the Atomic Energy Act of 1954 (42 U.S.C. 
        2243) is amended by adding at the end the following:
    ``(f) Limitation.--No license or certificate of compliance may be 
issued to the United States Enrichment Corporation or its successor 
under this section or sections 53, 63, or 1701, if in the opinion of 
the Commission, the issuance of such a license or certificate of 
compliance--
          (i) would be inimical to the common defense and security of 
        the United States; or
          (ii) would be inimical to the maintenance of a reliable and 
        economical domestic source of enrichment services because of 
        the nature and extent of the ownership, control, or domination 
        of the Corporation by a foreign corporation or a foreign 
        government or any other relevant factors or circumstances.''.
          (3) Section 1701(c)(2) of the Atomic Energy Act of 1954 (42 
        U.S.C. 2297f(c)(2)) is amended to read as follows:
                  ``(2) Periodic application for certificate of 
                compliance.--The Corporation shall apply to the Nuclear 
                Regulatory Commission for a certificate of compliance 
                under paragraph (1) periodically, as determined by the 
                Commission, but not less than every 5 years. The 
                Commission shall review any such application and any 
                determination made under subsection (b)(2) shall be 
                based on the results of any such review.''
          (4) Section 1702(a) of the Atomic Energy Act of 1954 (42 
        U.S.C. 2297f-1(a)) is amended--
                  (1) by striking ``other than'' and inserting 
                ``including'', and
                  (2) by striking ``sections 53 and 63'' and inserting 
                ``sections 53, 63, and 193''.
    (c) Judicial Review of NRC Actions.--Section 189b. of the Atomic 
Energy Act of 1954 (42 U.S.C. 2239(b)) is amended as follows:
          ``b. The following Commission actions shall be subject to 
        judicial review in the manner prescribed in chapter 158 of 
        title 28, United States Code and chapter 7 of title 5, United 
        States Code:
                  ``(1) Any final order entered in any proceeding of 
                the kind specified in subsection (a).
                  ``(2) Any final order allowing or prohibiting a 
                facility to begin operating under a combined 
                construction and operating license.
                  ``(3) Any final order establishing by regulation 
                standards to govern the Department of Energy's gaseous 
                diffusion uranium enrichment plants, including any such 
                facilities leased to a corporation established under 
                the USEC Privatization Act.
                  ``(4) Any final determination relating to whether the 
                gaseous diffusion plants, including any such facilities 
                leased to a corporation established under the USEC 
                Privatization Act, are in compliance with the 
                Commission's standards governing the gaseous plants and 
                all applicable laws.''.
    (d) Civil Penalties.--Section 234 a. of the Atomic Energy Act of 
1954 (42 U.S.C. 2282(a)) is amended by--
          (1) striking ``any licensing provision of section 53, 57, 62, 
        63, 81, 82, 101, 103, 104, 107, or 109'' and inserting: ``any 
        licensing or certification provision of section 53, 57, 62, 63, 
        81, 82, 101, 103, 194, 107, 109, or 1701''; and
          (2) by striking ``any license issued thereunder'' and 
        inserting: ``any license or certification issued thereunder''.
    (e) References to the Corporation.--Following the privatization 
date, all references in the Atomic Energy Act of 1954 to the United 
States Enrichment Corporation shall be deemed to be references to the 
private corporation.

SEC. 18. AMENDMENTS TO OTHER LAWS.

    (a) Definition of Government Corporation.--As of the privatization 
date, section 9101(3) of title 31 United States Code, is amended by 
striking subparagraph (N) as added by section 902(b) of Public Law 102-
486.
    (b) Definition of the Corporation.--Section 1018 of the Energy 
Policy Act of 1992 (42 U.S.C. 2296b-7(1)) is amended by inserting ``or 
its successor'' before the period.

                         Purpose of the Measure

    The purpose of S. 755, as reported by the Committee, is to 
transfer the interest of the United States in the United States 
Enrichment Corporation to the private sector in a manner that 
secures the maximum proceeds to the United States while:
          Providing for the long-term viability of the 
        Corporation;
          providing for the continuation by the Corporation of 
        the operation of the Department of Energy's gaseous 
        diffusion plants; and
          providing for the protection of the public interest 
        in maintaining a reliable and economical domestic 
        source of uranium mining and enrichment services.

                          Background and Need

    Uranium enrichment is a key step in the production of 
nuclear fuel for modern commercial power reactors. Natural 
uranium contains 99.3% of the isotope U238 and 0.7% of the 
isotope U235. The uranium fuel that powers modern light 
water reactors must be enriched to contain 3-5% of the more 
fissile 235U in order to sustain a nuclear reaction.
    From its beginning during World War II until 1993, uranium 
enrichment in the United States for both defense and commercial 
power purposes has been controlled by the Department of Energy 
(DOE) or its predecessor agencies. As recently as the 1970's, 
the United States monopolized free world uranium enrichment 
services. Throughout the 1970's and 80's, however, the U.S. 
enrichment enterprise lost market share to foreign competitors 
as a result of its own poorly timed marketing initiatives, 
conflicting policy directives imposed from above, and 
requirements placed upon it as a consequence of its status as a 
government entity. For example, DOE was required to publish 
commercially sensitive pricing and similar information in the 
Federal Register that would have been regarded by a private 
entity as commercially valuable, proprietary information.
    By the late 1980's, members of the Senate Energy and 
Natural Resources Committee, alarmed that the U.S. enrichment 
enterprise's market share had declined from a virtual monopoly 
to less than half of the global market, began to explore 
methods to privatize the U.S. uranium enrichment enterprise in 
order that it might compete more effectively in the 
marketplace. In 1988, the Senate first approved legislation 
directing the Department of Energy to spin off its uranium 
enrichment enterprise into a wholly owned government 
corporation as a transitory step to complete privatization. 
Only with the passage of the Energy Policy Act (EPAct) of 1992, 
however, did the direction to form a government corporation 
become law.
    On July 1, 1993, pursuant to the provisions of EPAct, the 
Department of Energy transferred its uranium enrichment 
operations into a wholly owned government corporation called 
the United States Enrichment Corporation (USEC). USEC, with 
approximately 130 employees, manages gaseous diffusion 
enrichment plants located in Paducah, Kentucky and Portsmouth, 
Ohio under lease from DOE. Day-to-day operations at the plants 
are managed under contract by Lockheed Martin Utility Services, 
employing 4,400 personnel. With 90% of the U.S. enrichment 
market and 40% of the world market, USEC's annual revenues 
approach $1.5 billion--a figure that would rank it 286th on the 
Fortune 500 if it were privately owned. Dividends of $30 
million in 1993 and $55 million in 1994 have been paid to 
USEC's sole shareholder--the U.S. Treasury.
    In testimony before the Committee, witnesses from the 
administration, including USEC, and J.P. Morgan Securities, 
Inc., expressed their view that the Corporation could not be 
successfully privatized in the absence of legislation designed 
to clarify a number of issues:
          Liability.--Legislation is needed to clearly identify 
        the liabilities that will rest with the private 
        corporation and those that will remain with the U.S. 
        Government. The identification of liabilities is 
        critical to investor confidence and the achievement of 
        maximum proceeds for the sale.
          Transfer of existing contracts and other assets.--To 
        ensure USEC's fair valuation in the marketplace, clear 
        legislative affirmation that the United States will 
        continue to stand behind existing, long term enrichment 
        services contracts is needed. The long term enrichment 
        service contracts are USEC's most valuable assets, and 
        investors require assurance that performance by the 
        Corporation under the contracts is guaranteed by the 
        United States until they are modified, terminated or 
        extended by the private parties. Similarly, other USEC 
        assets and obligations, including the right to purchase 
        electrical power under existing power supply contracts 
        and the right to continue to lease the gaseous 
        diffusion enrichment plants currently under lease by 
        USEC from DOE, must be addressed in legislation to 
        assure full valuation.
          Maintenance of important national security 
        agreements.--As a means to encourage the removal of 
        missiles from Ukraine, the dismantling of their Russian 
        nuclear warheads and the disposal of surplus Russian 
        highly enriched uranium (HEU), the United States and 
        Russia signed a bilateral agreement in 1993 to provide 
        for the U.S. purchase of Russian HEU from the warheads. 
        Under the terms of a subsequent purchase contract 
        between MinAtom (the Russian Atomic Energy Ministry) 
        and USEC (acting as the current Executive Agent for the 
        U.S.), the Russians will ``blend down'' 500 metric tons 
        of HEU into low enriched uranium (LEU) meeting 
        commercial standards. Under the terms of the bilateral 
        agreement, USEC and its possible successors as the U.S. 
        executive agent will pay up to $12 billion over 20 
        years for the LEU derived from weapons HEU. The current 
        contract between USEC and MinAtom proposes to pay the 
        Russians for both the natural uranium content of the 
        LEU and the ``Separative Work Unit(s)'' or SWU. Of the 
        $12 billion estimated potential value of the contract, 
        an estimated $8 billion is for SWU and an estimated $4 
        billion is for the natural uranium content. Under the 
        terms of the current contract, the value of the SWU is 
        paid at time of delivery, the value of the natural 
        uranium content is not paid for until it is resold, 
        used by USEC as ``overfeed'' in its enrichment 
        operations, or when the contract is completed. 
        Unfortunately for the Russians, there is no obvious 
        market for the Russian natural ``feed'' material under 
        current market conditions and trade restrictions. The 
        Far East and European markets are today essentially 
        closed to Russian materials, and the U.S. market is 
        restricted under an antidumping suspension agreement 
        administered by the U.S. Commerce Department. Thus, it 
        is unlikely that the Russians would receive significant 
        payments against $4 billion of the agreement's 
        estimated value prior to 2015 under current contract 
        arrangements. The Russians have expressed frustration 
        over this aspect of the contract, and there are fears 
        that they may withdraw from the agreement. To help 
        ensure the implementation of the HEU agreement, the 
        administration has considered proposing that USEC be 
        allowed to sell the natural uranium in the United 
        States and to waive duties if the antidumping 
        suspension agreement were canceled in order to continue 
        purchases under the Russian HEU agreement. However, the 
        unrestricted entry into the market of new, low cost 
        feed materials could significantly disrupt uranium 
        markets and depress market prices. Thus, there is a 
        need for legislation to ``solve'' the problem outlined 
        above by (1) striking a balance between the maintenance 
        of the agreement and protection against market 
        disruptions in the uranium production, conversion and 
        enrichment industries; and (2) addressing concerns that 
        USEC's privatization may erect obstacles to the success 
        of the Russian HEU agreement. S. 755, as amended, 
        addresses these concerns by creating mechanisms that 
        allow the Russians to receive full payment for the feed 
        material from the current contract through 1996, with 
        feed material from subsequent years either being 
        returned to the Russians or independently auctioned 
        with the proceeds, less costs, going to the Russians. 
        The Russian feed material could be freely sold abroad 
        or sold for domestic end use subject to annual maximum 
        amounts specified in the bill.
    Other issues, while not deemed essential to privatization, 
were considered by most witnesses appearing before the 
Committee as desirable features in the legislation:
          Uranium Transfers.--As a means of enhancing the value 
        of USEC in the marketplace and reducing DOE's costs of 
        safeguarding surplus HEU, the administration sought 
        legislative direction for the transfer of specified 
        amounts of surplus enriched uranium and uranium 
        hexafluoride feed material.
          Clarification of the DOE's ability to sell excess 
        uranium inventories.--The Energy Policy Act of 1992 
        designated USEC as the Department of Energy's exclusive 
        marketing agent--an arrangement that would be clearly 
        undesirable once USEC was fully privatized. Therefore, 
        legislation authorizing the Department of Energy to 
        market its surplus enriched uranium, with or without 
        the use of a marketing agent, was considered necessary 
        and desirable.
          Clarification of the fate of low level radioactive 
        waste from enrichment activities.--Because the 
        interstate low-level radioactive waste compacts of 
        which Kentucky and Ohio are a part never envisioned 
        accommodating low level radioactive waste from the DOE 
        gaseous diffusion enrichment plants, some witnesses 
        expressed the need to clarify in legislation the 
        eventual fate of such waste, including uranium 
        hexafluoride ``tails'' should they ever be declared 
        waste. Moreover, there was concern that investors might 
        discount USEC's value in the absence of clear 
        legislative language marketing provisions for low-level 
        waste disposal.
    In testimony before the Committee, the Oil, Chemical and 
Atomic Workers (OCAW) Union sought the legislative resolution 
of issues related to the protection of worker pension plans, 
existing collective bargaining agreements, the establishment of 
employment protections, hiring preference for environmental 
restoration activities, and guarantees of future post-
retirement health benefits. S. 755, as amended, addresses these 
issues in section 10.
    Finally, a variety of other issues were widely seen as 
requiring legislative clarification. These issues ranged from 
the mechanics of the transfer of assets and obligations from 
the government corporation to the private corporation to the 
specification of one-step licensing of Atomic Vapor Isotope 
Separation (AVLIS) technology. S. 755, as reported by the 
Committee, clarifies these issues and directs that USEC shall 
be privatized under terms and conditions established by the 
Board of Directors with the approval of the Secretary of 
Treasury. The actual privatization will occur when the 
government corporation stock now held by the U.S. Department of 
Treasury is transferred to private ownership through an initial 
public offering of public stock, a negotiated sale, or a 
combination of the two.
    The President's fiscal year 1996 budget estimates net 
proceeds of $1.5 billion to the U.S. Treasury from the sale of 
USEC. J.P. Morgan estimates of sale proceeds resulting from an 
initial public offering range from $1.5-$1.8 billion. In 
addition to the revenues derived from the sale, USEC's profits 
will be subjected to Federal income taxes after privatization. 
Had it been a private business, USEC would have paid 
approximately $150 million in taxes in 1994.

                          Legislative History

    Senator Domenici, with Senators Ford, Johnston, Campbell, 
Thomas, and Simpson as original cosponsors, introduced S. 755 
on May 3, 1995. The bill was referred to the Committee on 
Energy and Natural Resources. On June 13, 1995, the full 
Committee held a hearing on S. 755.

           Committee Recommendations and Tabulation of Votes

    At a business meeting on September 21, 1995, the Committee 
ordered S. 755 favorably reported with an amendment in the 
nature of a substitute by voice vote.

                          Committee Amendments

    The Committee adopted an amendment in the nature of a 
substitute to S. 755. Although the substitute amendment retains 
the purpose and many of the provisions of S. 755, the 
substitute employs a modified structure intended to make the 
legislation easier to read and comprehend. A discussion of the 
major provisions of S. 755 and changes incorporated in the 
substitute follows:

                                 avlis

    Atomic Vapor Laser Isotope Separation (AVLIS) is a 
promising enrichment technology that may enrich uranium at a 
lower cost than gaseous diffusion or centrifuge technologies. 
Sections 2 and 9 of S. 755, would provide for one-step 
licensing of an AVLIS enrichment facility by the Nuclear 
Regulatory Commission (NRC), consistent with the licensing of 
other uranium enrichment facilities. Section 17(b), paragraphs 
(1) and (4) of the Committee substitute would accomplish the 
same goal.

                          employee provisions

    It was the intent of S. 755, in section 4 as introduced, 
that privatization be neutral with respect to the pension 
benefits and collective bargaining agreements at the gaseous 
diffusion plants in Ohio and Kentucky. Section 10(a) of the 
Committee substitute strengthens and clarifies this intent, and 
provides standing in U.S. District Court for suits arising from 
alleged violations of provisions in the section not otherwise 
provided under existing law. Section 10 of the Committee 
substitute also adds provisions to protect the jobs of 
nonmanagement employees in the event of a change in plant 
operating contractors, addresses future post-retirement health 
benefits, and extends hiring preferences afforded under 
sections 3161 and 3162 of the 1993 National Defense 
Authorization Act.
    Section 10(b) of the Committee substitute and S. 755, in 
section 4 as introduced, contain identical language addressing 
the health and pension benefits of employees of the Corporation 
who transferred from other Federal employment.

                      uranium marketing authority

    Both S. 755 and the Committee substitute would delete the 
exclusive authority of USEC to market enriched uranium on 
behalf of the U.S. Government, and both afford the Department 
of Energy with the ability to market surplus enriched uranium 
from its stockpile to the extent the President determines the 
material is not necessary for national security needs. However, 
S. 755 as introduced provides USEC with a right of first 
refusal to purchase this material. The Committee substitute did 
not contain this provision due to concerns that such a right of 
first refusal would have an adverse effect on the successful, 
competitive marketing of uranium from the DOE stockpile.
    S. 755 as introduced also contains provisions requiring 
full rulemaking, with opportunities for public comment, and a 
secretarial determination that the sale of surplus stockpile 
material would not have an adverse impact on domestic mining or 
enrichment industries before such sales could occur. While the 
Committee substitute also requires a secretarial determination 
designed to ensure that the sale of surplus stockpile material 
will not have an adverse impact on domestic mining or 
enrichment industries, full rulemaking would not be required. 
This modification was made to ensure that the Secretary will be 
able to sell surplus material in an efficient manner, although 
both S. 755 as introduced and the Committee substitute require 
the payment of fair market value and the satisfaction of other 
conditions.

                         transfer of contracts

    To ensure the valid transfer of USEC's primary assets--the 
existing long term enrichment contracts--to the private 
corporation, both S. 755 as introduced and the Committee 
substitute maintain full faith backing by the U.S. Government 
for the existing enrichment contracts transferred from DOE to 
USEC until those contracts are modified or terminated. However, 
both the bill as introduced and the Committee substitute 
require USEC to reimburse the United States for any judgments 
it is forced to pay under this provision arising from actions 
of the private corporation after the privatization date.

                            low-level waste

    S. 755 as introduced contains language in section 5 
providing that any NRC licensed uranium enricher in the United 
States may send low-level waste to DOE, paying DOE's cost of 
disposal (not to exceed prevailing commercial rates). 
Currently, USEC is the only such domestic enricher, but the 
extension of this benefit to other potential future domestic 
enrichers is meant to ensure that a privatized USEC will not 
enjoy an unfair advantage over a future domestic competitor. 
Moreover, the low-level radioactive waste repositories planned 
to serve Ohio and Kentucky never anticipated accepting wastes 
from the DOE/USEC enrichment plants, so this provision was 
included to ensure that there would be an eventual repository 
for the low-level wastes generated from the operation, 
decontamination, and decommissioning of the plants.
    Testimony received from the low-level nuclear waste compact 
commissions serving Kentucky and Ohio, however, expressed 
concerns that the language in S. 755 as introduced would not 
have its intended result, and that the USEC or the private 
corporation, or any competing domestic enricher could, at their 
sole discretion, dispose of waste at compact sites. Therefore, 
the Committee substitute, in section 13, modified the language 
to clarify that no State or interstate compact shall be liable 
for the treatment, storage, or disposal of any low-level 
radioactive waste (including mixed waste) attributable to the 
operation, decontamination, and decommissioning of any uranium 
enrichment facility.

            DOE TRANSFERS OF URANIUM PRIOR TO PRIVATIZATION

    Section 12(c) of the Committee substitute and S. 755, in 
section 5(d) as introduced, would each allow the Department of 
Energy to transfer to USEC, without charge, up to 7,000 metric 
tons of natural uranium and 50 metric tons enriched uranium 
prior to the privatization date. Both the substitute and S. 755 
as introduced contain identical limitations on the amount of 
this material USEC and the private corporation can introduce 
into the market.

             THE RUSSIAN HIGHLY ENRICHED URANIUM AGREEMENT

    Both S. 755 as introduced and the Committee substitute 
contain extensive language intended to address the role of the 
USEC and the private corporation in the continuation of an 
important national security initiative begun in the Bush 
administration and continued in the Clinton administration--the 
U.S. agreement to purchase highly enriched uranium (HEU) from 
Russian nuclear warheads. S. 755, as introduced, contained 
several innovative features, such as forward sales of the 
Russian uranium ``feed'' component as a means to compensate the 
Russians for the value of this material earlier than 
contemplated under existing contractual arrangements, that were 
further developed and refined in the Committee substitute.
    There are, however, several important differences between 
S. 755 as introduced and the Committee substitute. S. 755, as 
introduced, provided for the immediate return of the feed 
material (uranium hexafluoride) component to Russian Federation 
ownership. This feed material, designated as Russian material, 
could only be sold for end use in the United States subject to 
a ``matched sales'' suspension agreement currently in force 
that arose from a Department of Commerce anti-dumping 
investigation, or subject to other limitations as provided in 
the bill. Due to the concern that the low price for the Russian 
uranium hexafluoride afforded under these limitations could 
result in the collapse of the Russian HEU Agreement, the 
Committee substitute contains a number of provisions, described 
in section 12, to ensure that the Russians will receive full 
payment for the uranium hexafluoride component through 1996. 
This will be accomplished by directing USEC to pay the Russians 
for this material as it is received. USEC will then transfer 
this material (derived from at least 18 metric tons of highly 
enriched uranium) to the Department of Energy, which will be 
free to resell it subject to conditions and limitations 
specified in the bill. For Russian uranium hexafluoride 
received after 1996, the Committee substitute contains 
provisions that allow for forward sales, auctions by 
independent entities, and other mechanisms to ensure the 
Russians receive market values for their uranium hexafluoride. 
Again, the purpose of these departures from the approach 
envisioned in S. 755, as introduced, is to help encourage 
continued Russian participation in the HEU Agreement.
    S. 755, as introduced, contained a provision mandating that 
USEC remain the U.S. Executive Agent under the HEU Agreement at 
least until the date of privatization. The Committee substitute 
does not contain this provision in order to maintain the 
administration's flexibility in selecting the Executive Agent 
of its choosing.

                       MECHANICS OF PRIVATIZATION

    S. 755, in section 7 as introduced, contained provisions 
related to the mechanics of privatization and the establishment 
of a private corporation. The Committee substitute, for the 
most part, merely refines and clarifies these provisions. 
However, there are some important differences.
    For example, S. 755, as introduced, contained language to 
limit ownership, in the event of a public stock offering, to 
10% for a period of three years. The intent of this provision 
was to protect the privatized corporation from ``raiders'' more 
interested in the cash and income value of the corporation than 
its maintenance as an ongoing uranium enrichment concern. The 
Committee substitute deleted this provision due to concerns 
that the limitation might limit the flexibility of the Board 
and the Department of the Treasury to arrange for privatization 
through a combination sale combining features of an initial 
public offering (IPO) and a merger/acquisition. In deleting 
this provision, the Committee notes that provisions in section 
(4)b providing the Board and the Secretary of the Treasury with 
the authority to establish specific terms and conditions for 
the transfer that may be used to protect the corporation from 
buyers not interested in operating the private corporation as 
an ongoing uranium enrichment concern.

                      GASEOUS DIFFUSION TECHNOLOGY

    S. 755, as introduced, contains no language related to the 
commercial rights of the gaseous diffusion technology used for 
uranium enrichment. This technology has substantial commercial 
promise in applications unrelated and unrelated to uranium 
enrichment, but the Department of Energy has been unable to 
successfully commercialize the technology.
    Since gaseous diffusion technology can be used to enrich 
uranium, the Committee is mindful of the obvious importance of 
protecting the technology in keeping with important non-
proliferation goals. However, other proliferation-sensitive 
technologies are in the commercial marketplace today, subject 
to strict export and end use requirements confident in the 
ability of the Government to protect this technology under 
existing law, the Committee included language in section 15 of 
the Committee substitute providing USEC and the private 
corporation with the exclusive commercial rights for both 
uranium enrichment and non-uranium enrichment uses of the 
gaseous diffusion technology owned or controlled by the 
Department of Energy, or by the United States but under control 
or custody of the Department of Energy. The Committee 
substitute further directs the Corporation to enter into an 
exclusive licensing agreement with the Department of Energy 
providing for royalty payments of 3% of the gross revenues 
realized by the Corporation from its non-uranium enrichment 
commercial uses of the gaseous diffusion technology.
    The inclusion of this language adds value to USEC in the 
marketplace, provides the opportunity to commercialize a 
valuable technology, provides royalty repayment to the 
Treasury--and does so while protecting the underlying 
technology from prohibited uses.

                    LIMITATIONS ON FOREIGN OWNERSHIP

    S. 755, as introduced, contains a provision providing the 
Nuclear Regulatory Commission with the authority to deny a 
license or certificate of compliance if the ``issuance of such 
a license or certificate of compliance to the Corporation would 
be inimical to the common defense and security of the United 
States due to the nature and extent of the ownership, control 
or domination of the Corporation by a foreign corporation or 
foreign government or any other relevant factors or 
circumstances'' (emphasis added).
    The Committee substitute, in section 17(a)(2), includes the 
``common defense and security'' requirement while adding that 
the NRC may also deny a license or certificate of compliance if 
doing so would be inimical to the maintenance of a reliable and 
economical domestic source of enrichment services due to the 
nature and extent of the ownership, control or domination of 
the Corporation by a foreign corporation or foreign government 
or any other relevant factors or circumstances. This language 
was added to guard against the possibility of a foreign uranium 
enrichment company acquiring the Corporation with the intent of 
operating it in a manner inconsistent with its maintenance as 
an ongoing uranium enrichment concern.

                      Section-by-Section Analysis

Section 1--Title

    The intent of the section is self explanatory.

Sec. 2--Purpose

    The intent of the section is self explanatory.

Sec. 3--Definitions

    The intent of the section is self explanatory.

Sec. 4--Sale of the corporation

    Subsection (a) provides specific authorization for the 
Board of Directors, with the approval of the Secretary of the 
Treasury, to transfer ownership of the Corporation to private 
investors by first transferring the assets and obligations of 
the Corporation to the private corporation established under 
section 5 and then selling the private corporation to investors 
pursuant to an initial public offering, a negotiated sale or a 
combination of the two.
    Subsection (b) further authorizes the Board of Directors, 
with the approval of the Secretary of the Treasury, to select 
the specific method of transfer as well as its terms and 
conditions, in a manner that provides maximum proceeds to the 
U.S. Treasury, and provides for the long term viability of the 
private corporation, the continued operation of the gaseous 
diffusion plants, and the public interest in maintaining 
reliable and economic domestic uranium mining and enrichment 
industries.
    The Board of Directors is directed to take action in 
subsections (a) and (b) with the approval of the Secretary of 
the Treasury in recognition of the fact that the Secretary of 
the Treasury currently holds all of the capital stock of the 
Corporation. The requirement for approval is not intended to, 
and should not, impair the ability of the Board of Directors to 
act in a timely manner in response to market and other 
conditions in connection with privatization. The Board of 
Directors and the Secretary should move with dispatch and in a 
market sensitive manner to carry out the privatization.
    Subsection (c) directs that the sale of the Corporation be 
conducted in accordance with existing federal and state 
securities laws.
    Subsection (d) directs that proceeds from the sale of the 
Corporation shall be deposited in the general fund of the 
Treasury, included in the budget baseline required by the 
Balanced Budget and Emergency Deficit Control Act of 1985, and 
counted as an offset to direct spending.
    Subsection (e) specifies that the expenses of privatization 
shall be paid from the Corporation's revenue accounts in the 
U.S. Treasury.

Sec. 5--Establishment of the private corporation

    Paragraph (1) of subsection (a) directs the Corporation's 
directors to establish a new, for-profit corporation 
incorporated under state law to receive USEC's assets and 
obligations at privatization, and to carry forth its business 
operations. The establishment of a State incorporated private 
corporation will facilitate the sale of the Corporation 
regardless of the method of sale selected.
    Paragraph (2) of subsection (a) authorizes the 
Corporation's directors to serve as incorporators of the new 
private corporation and to take all necessary steps to 
establish the private corporation and provide for a smooth 
transition, including the filing of articles of incorporation 
and the sale of the Corporation's stock (100% of which is now 
held by the U.S. Treasury) to private investors through an 
initial public offering, or through a negotiated sale, or a 
combination of the two.
    The section also ensures compatibility with Federal 
employee ethics laws. Prior to privatization, the Corporation 
will be providing necessary services for the private 
corporation while the two corporations exist contemporaneously. 
The addition of paragraph (3) of subsection (a) will ensure 
that employees, officers and directors providing such services 
are doing so in their official Government capacities, thus 
avoiding any question about the application of section 205 of 
title 18 for these limited functions. Also, because the 
employees, officers and directors of the Corporation could 
become employees, officers and directors of the private 
corporation on the privatization date, subsection (c) ensures 
that the post-government employment restrictions in section 207 
of title 18 will not apply to USEC directors, officers or 
employees. The 45 day requirement for employment is to help 
ensure that the purpose of the exemption is truly for those who 
move from the Corporation to the private corporation and not 
from another agency to the private corporation.
    This section does not provide an exemption from the 
restrictions of subsection (f) of 18 U.S.C. 207, which 
prohibits for one year former senior employees from 
representing, aiding or advising a foreign government or 
political party on a matter in which the entity is seeking to 
influence a decision by an officer or employee of a U.S. 
department or agency.
    Subsection (b) clarifies the status of the private 
corporation, specifying that it will not be an agency, 
instrumentality, or establishment of the United States, a 
Government Corporation, or a Government-controlled corporation, 
that financial obligations of the private corporation shall be 
its alone except as provided elsewhere in the Act and that no 
action under 28 U.S.C. 1491 will be allowed against the United 
States based upon the actions of the private corporation.
    Finally, subsection (d) directs that in the event USEC has 
not been privatized within one year of the incorporation of the 
private corporation the private corporation will be dissolved. 
If requested by the Corporation, and the Secretary of the 
Treasury agrees, the dissolution of the private corporation may 
be delayed one additional year in order to permit privatization 
to occur.

Sec. 6--Transfers to the private corporation

    This section provides for the transfer of the Corporation's 
property, assets, contracts, agreements, leases, rights to 
purchase power, funds and records regardless of form, to the 
new private corporation.

Sec. 7--Leasing of gaseous diffusion facilities

    Subsection (a) directs that the lease between the 
Department of Energy and the Corporation for the gaseous 
diffusion plants in Kentucky and Ohio will transfer to the new 
private corporation under the existing terms for the remainder 
of the current lease period.
    Subsection (b) directs that the new corporation will have 
the exclusive option to renew the lease of the plants and their 
related property for additional periods following the initial 
lease term.
    Subsections (c) through (g) were originally enacted as part 
of section 1403 of the Energy Policy Act of 1992 and are 
restated in this act and take account of the private 
corporation because such provisions will continue to have 
effect following the privatization date. However, subsection 
(g) has been slightly modified to ensure that the transfer of 
the existing gaseous diffusion plant lease to the private 
corporation (or its extension or renewal) does not trigger the 
need for an Environmental Impact Statement, Environmental 
Assessment or other review under the National Environmental 
Policy Act of 1969. Subsection (e) was also slightly modified 
to reflect that the Department of Energy conducted an 
environmental audit before the July 1, 1993 transition date 
under the Energy Policy Act of 1992. Under subsection (d), 
which simply restates the provision originally enacted in the 
Energy Policy Act of 1992, the Department of Energy remains 
responsible for conditions that existed before July 1, 1993 
which would include those identified in the audit.

Sec. 8--Transfer of contracts

    Recognizing that the primary value of USEC is the value of 
its long term uranium enrichment contracts, this section 
explicitly specifies that the Corporation will transfer these 
contracts and other contracts, leases and agreements to the new 
private corporation:
          Paragraph (1) of subsection (a) transfers the 
        existing long-term uranium enrichment contracts, as 
        well as all other contracts, agreements and leases 
        transferred from DOE to the Corporation on July 1, 1993 
        pursuant to the 1992 legislation creating the 
        Corporation.
          Paragraph (2) of subsection (a) transfers the 
        existing long-term uranium enrichment contracts, as 
        well as all other contracts, agreements and leases 
        entered into by the Corporation between July 1, 1993 
        and the privatization date.
    The gaseous diffusion enrichment process uses substantial 
amounts of electricity, and the ability to enrich uranium at 
competitive prices depends on stable electricity prices secured 
under non-transferable, long-term power purchase agreements 
held by the Department of Energy. As a consequence, subsection 
(b) transfers the right to purchase power at cost from the 
Department of Energy throughout the term of those power 
purchase contracts entered into by the Secretary prior to July 
1, 1993. The United States is unable to resell the power under 
these agreements except for use at the gaseous diffusion 
plants. The United States will be able to realize the value of 
these non-transferable power purchase agreements and the 
substantial capital it has invested in the power plants through 
continuing to resell the power to the Corporation subsequent to 
privatization. The United States would thereby realize the 
value of the power purchase agreements at privatization.
    To ensure the continuation of the contracts, leases and 
agreements outlined above, which is again a key component of 
the Corporation's valuation, subsection (c) specifies that the 
United States will remain obligated to the parties of the 
contracts, leases and agreements for performance during their 
terms, until they are terminated, extended, or materially 
amended after the privatization date. However, paragraph (3) of 
subsection (c) also provides that the private corporation will 
reimburse the United States for any settlements or judgments 
arising out of the transferred contracts, leases and agreements 
as a result of actions taken by the private corporation between 
the privatization date and the termination, extension, or 
material amendment of the contract, agreement or lease.
    Subsection (d) restates the relevant portions of language 
related to the pricing of products, materials and services 
included in the Energy Policy Act of 1992. It provides that the 
Corporation may establish prices for its products, materials, 
and services on a basis that will allow it to attain the normal 
business objectives of a profitmaking corporation. In the case 
of the contracts originally transferred by the Secretary 
pursuant to section 1401(b) of the Energy Policy Act of 1992, 
after privatization the private corporation would continue to 
price its services to attain the normal business objectives of 
a profitmaking corporation, provided the prices charged are 
consistent with the terms of the contracts including any 
ceiling charge provided in the terms of the transferred 
contracts. Congress, by including this language, does not 
intend to affect the outcome of any pending legislation over 
the pricing of enrichment services.

Sec. 9--Liabilities

    This section specifies the liabilities of the United States 
and those of the private corporation--a prerequisite to the 
proper market valuation of the Corporation and critical to 
realizing the maximum sale value for the United States.
          Paragraph (1) of subsection (a) restates the 
        provision in the Energy Policy Act of 1992 and provides 
        that the liabilities arising from the operation of the 
        gaseous diffusion plants prior to the July 1, 1993 
        transition from the Department of Energy to the 
        Corporation shall remain with the U.S. Government.
          Paragraph (2) of subsection (a) specifies that all 
        liabilities arising out of the operations of the 
        Corporation between July 1, 1993 and the privatization 
        date shall remain the direct liabilities of the United 
        States, except as provided in subsection (a)(3) or 
        otherwise provided in a memorandum of agreement between 
        the Corporation and the Office of Management and 
        Budget.
          Paragraph (3) of subsection (a) states that the 
        liability for disposal of depleted uranium generated 
        from the enrichment process prior to the date of 
        privatization shall remain with the U.S. Government.
          Paragraph (4) contains language withdrawing the 
        consent of the United States to be sued for claims 
        arising from the privatization of the Corporation.
          Paragraph (5) contains language that provides that, 
        to the extent that claims brought against the United 
        States under this section must first be presented to a 
        federal agency or official for adjudication, the 
        Department of Energy shall be the designated agency.
          Paragraph (6) stipulates that the Attorney General 
        shall represent the United States in any action seeking 
        to impose liability under this section.
          Subsection (b) clarifies that the Corporation will 
        not be considered in breach, default or violation of 
        agreements due to their transfer to the private 
        corporation, or for any other actions the Corporation 
        is required to take under this Act.
          Subsection (c) explicitly states that, except as 
        otherwise provided elsewhere in the Act, the private 
        corporation shall be liable for its actions after the 
        privatization date.
          Subsection (d) includes language that protects the 
        officers, directors, employees and agents of the 
        Corporation from liability in civil proceedings 
        provided they are acting within their scope of 
        employment, except for activities related to securities 
        transactions.

Sec. 10--Employee protections

    Subsection (a) provides for the protection of employees at 
the gaseous diffusion plants in Kentucky and Ohio in the 
following manner:
          Pension Plans: Paragraphs (1) and (2) of subsection 
        (a) specify that privatization will not diminish the 
        accrued, vested pension benefits of the plant's 
        operating contractor employees, and that, in the event 
        the private corporation terminates or changes the 
        operating contractor at either or both of the gaseous 
        diffusion plants, the appropriate fiduciary of the 
        pension plan covering contractor employees will arrange 
        for the transfer of the assets (including any 
        surpluses) and liabilities of the pension plan to the 
        extent that they relate to accrued pension benefits of 
        the plan's participants and beneficiaries for the 
        relevant gaseous diffusion plant to the pension plan 
        sponsored by the new contractor, the private 
        corporation (if it operates the plant without an 
        operating contractor), or a joint labor-management plan 
        as appropriate.
          Collective Bargaining Agreements: Paragraph (3) of 
        subsection (a) preserves the unexpired collective 
        bargaining agreements in place at the time of 
        privatization until their stated expiration or 
        termination date, specifying that in the event a 
        collective bargaining agreement is not in place at the 
        time of privatization, the employer will have the same 
        obligations to pursue a collective bargaining agreement 
        that it had under section 8(d) of the National Labor 
        Relations Act immediately before the privatization 
        date. The intent of this section is to ensure that 
        privatization does not advantage management or labor in 
        any ongoing deliberations leading to a new collective 
        bargaining agreement. Paragraph 4(B) of subsection (a) 
        also protects unexpired collective bargaining 
        agreements in the event of a change in plant operating 
        contractors, until the agreements expire or new 
        agreements are signed.
          Employment protections: Paragraph (4) of subsection 
        (a) directs that in the event of a change in plant 
        operating contractors, the new contractor (or the 
        private corporation in the event that it operates the 
        plant without a contractor), will offer employment to 
        the non-management employees of the predecessor 
        contractor to the extent their jobs still exist, or to 
        the extent that they are qualified for new jobs at the 
        plant.
          Hiring preference for environmental restoration 
        activities: Paragraph (5) of subsection (a) directs 
        that in the event of mass layoffs or plant closings, 
        the affected contractor employees who were also 
        employed at the plant on July 1, 1993 shall be eligible 
        for the hiring preferences afforded under sections 3161 
        and 3162 of the 1993 National Defense Authorization 
        Act.
          Future post-retirement health benefits: Paragraph (6) 
        of subsection (a) attempt to ensure that employees 
        working for the operating contractor of the private 
        corporation at the gaseous diffusion plants in Kentucky 
        and Ohio will be provided post retirement health 
        benefits at substantially the same level of coverage as 
        that to which retirees, meeting comparable eligibility 
        requirements under the operating contractor's post 
        retirement health benefit plan, will be entitled under 
        the plan on the privatization date. Because this 
        paragraph is intended to provide benefits at 
        substantially the same level of coverage provided to 
        retirees under the plan on the privatization date, the 
        coverage provided to eligible retirees may differ, 
        based on factors such as years of service accumulated 
        by a retiree prior to retirement. Thus, the coverage 
        provided to a retiree with six years of service may 
        differ from that provided to a retiree with ten years 
        of service. The assurance of coverage provided by this 
        paragraph is limited in its applicability to those 
        operating contractor employees who are vested 
        participants in their employer's pension plan as of the 
        privatization date and those individuals who retired 
        from such employment as vested plan participants prior 
        to the privatization date. While providing assurance of 
        post retirement health benefit coverage to the 
        specified individuals, paragraph (6) of subsection (a) 
        recognizes the need to allow the provider of such 
        benefits the ability to avail itself of opportunities 
        to do so in an economically efficient manner. The 
        paragraph, therefore, preserves the right of the post-
        retirement health benefits plan provider (and its 
        successor) to implement cost-saving measures, such as 
        preferred provider organizations, managed care 
        programs, mandatory second opinions before surgery or 
        other medical procedures, and mandatory use of generic 
        drugs, that do not materially diminish the overall 
        quality of the medical care provided through the 
        benefits plan. The paragraph also specifies that the 
        Department of Energy shall continue to pay all of the 
        costs of post-retirement health benefits for employees 
        retiring prior to July 1, 1993, and that the costs of 
        health benefits of employees retiring after that date 
        will be shared by the Department and the private 
        corporation on a pro-rata basis.
    Paragraph (7) of subsection (a) provides standing in U.S. 
district court for suits arising from alleged violations of 
provisions in the Section not otherwise provided under existing 
law.
    Finally, subsection (b) clarifies current law to provide 
that employees of the Corporation who transferred to the 
Corporation from other Federal employment, in addition to pre-
privatization rights provided to Federal employees with respect 
to coverage under the Federal retirement systems, have the 
option to receive benefits payable to a terminated employee 
under either the Civil Service Retirement System or the Federal 
Employees' Retirement System, as applicable, and to transfer 
their Thrift Savings Plan account balance to a defined 
contribution plan under the Corporation's retirement system, 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. Subsection (b) also provides these employees 
with the option to continue receiving health coverage under the 
Federal Employee Health Benefits Program if they choose to 
retain retirement coverage under either CSRS or FERS. 
Alternatively, the employees may choose to receive health 
benefits from a Corporation plan.

Sec. 11--Ownership limitations

    This section provides that directors, officers and 
employees of the Corporation may not acquire any securities, or 
any right to acquire securities, of the Corporation, on any 
terms more favorable than those offered to the public (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 private corporation.
    These protections ensure that privatization decisions made 
by the officer, 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 
personal financial considerations not interfere with the 
decision-making process as various privatization options are 
considered. The provision ensures that stock options and 
employee benefits packages are delinked from the privatization 
process itself.

Sec. 12--Uranium transfers and sales

    Subsection (a) makes clear that the Department of Energy is 
not authorized to provide enrichment services (to ensure that 
the new private corporation will not encounter Government 
competition) and prohibits all sales and transfers of uranium 
by the Department of Energy to other entities except as 
consistent with this section.
    Subsection (b) addresses the U.S.-Russian HEU Agreement, 
for which USEC is the current Executive Agent for the United 
States. This subsection includes mechanisms to ensure that the 
Russians will receive full payment. The feed material from the 
current contract through 1996, will be transferred to and sold 
by the Department of Energy. Feed material from subsequent 
years will either be returned to the Russians or auctioned by 
an entity independent of the U.S. Executive Agent subject to 
specified limitations, with the proceeds, less costs, going to 
the Russians. Material allowed to be sold into the United 
States pursuant to this subsection is in addition to quantities 
of uranium otherwise allowable under the Suspension Agreement.
    Specifically, paragraph (1) of subsection (b) provides that 
the Corporation's funds in the U.S. Treasury will be used to 
pay the Russians for the natural uranium feed component of low-
enriched uranium derived from at least 18 metric tons of highly 
enriched uranium purchased from the Russian Executive Agent 
under the Russian HEU Agreement. USEC is directed to transfer 
this feed component, without charge and prior to December 31, 
1996, to the Department of Energy. Title for this material 
transfers to the Secretary of Energy, and the material shall be 
deemed to be of Russian origin.
    Paragraph (2) of subsection (b) directs that within 7 years 
of the date of enactment of this Act, the Secretary shall sell 
the uranium hexafluoride transferred to the Secretary pursuant 
to paragraph (1) at any time for use in the United States for 
the purpose of overfeeding the gaseous diffusion enrichment 
plants; at any time for end use outside the United States; or, 
in calendar year 2001 for consumption by end users in the 
United States not prior to January 1, 2002 in volumes not to 
exceed 3 million pounds U3O8 equivalent per year. 
These amounts are outside the limitations contained in 
paragraph (5) of this subsection.
    Paragraph (3) of subsection (b) addresses all enriched 
uranium that is delivered to the United States Executive Agent 
under the Russian HEU Agreement on or after January 1, 1997. 
With respect to this material, the United States Executive 
Agent shall, upon request of the Russian Executive Agent, enter 
into an agreement to deliver to the Russian Executive Agent an 
amount of uranium hexafluoride equivalent to the natural 
uranium component of such enriched uranium. Uranium 
hexafluoride delivered to the Russian Executive Agent pursuant 
to this paragraph shall be deemed under U.S. law for all 
purposes to be of Russian origin. Such uranium hexafluoride may 
be sold to any person or entity for use outside of the United 
States at any time, or inside the United States as permitted in 
subsections (b)(5), (b)(6) and (b)(7) of this section.
    Paragraph (4) of subsection (b) establishes an auction 
mechanism in the event that the Russian Executive Agent does 
not request the return of the material as provided under 
paragraph (3) of subsection (b). Proceeds from the auctioned 
material, less costs, are provided to the Russian Executive 
Agent.
    Paragraph (5) of subsection (b) establishes a schedule 
under which the Russian material delivered to the Russian 
Executive Agent under the provisions of paragraph (3) or 
auctioned under the provisions of paragraph (4) may be 
delivered for consumption by end users in the United States. 
The purpose of this schedule is to provide a reasonable, 
predictable, and measured introduction of this Russian material 
into the domestic uranium market.
    Paragraph (6) of subsection (b) specifies that the Russian 
material delivered to the Russian Executive Agent under the 
provisions of paragraph (3) or auctioned under the provisions 
of paragraph (4) may be sold at any time as Russian-origin 
natural uranium in a matched sale pursuant to the Suspension 
Agreement, and in such case shall not be counted against the 
annual maximum deliveries set forth in paragraph (5).
    Paragraph (7) of subsection (b) specifies that the Russian 
material delivered to the Russian Executive Agent under the 
provisions of paragraph (3) or auctioned under the provisions 
of Paragraph (4) may be sold at any time for use in the United 
States for the purpose of overfeeding uranium enrichment 
facilities.
    Paragraph (8) of subsection (b) notes that nothing in 
subsection (b) shall restrict the sale of the conversion 
component of uranium hexafluoride.
    Paragraph (8) also prohibits swaps, loans and exchanges of 
the Russian uranium hexafluoride that is subject to paragraph 
(5) of subsection (b), except there is no limitation on the 
conversion component of the Russian material so that it can be 
easily sold to end users at any time. The purpose of this 
limitation is to prevent swaps or exchanges of uranium 
hexafluoride prior to enrichment that might result in the 
national origin of such material being changed by its 
enrichment overseas.
    Paragraph (9) of subsection (b) designates responsibilities 
for enforcement and administration of limitations in the 
subsection. In order to minimize the burden of compliance on 
consumers of uranium, the Secretary of Commerce should, to the 
maximum extent possible, use existing administrative forms and 
processes to ensure compliance with this section.
    Paragraph (10) requires the President to monitor the 
actions of the United States Executive Agent under the Russian 
HEU Agreement and to produce an annual report outlining the 
effect the low-enriched uranium delivered under the Agreement 
is having on the domestic uranium mining, conversion, and 
enrichment industries, and the operation of the gaseous 
diffusion plants.
    Subsection (c) directs the Secretary to transfer 50 metric 
tons of enriched uranium and 7,000 metric tons of natural 
uranium without charge from the Department of Energy to the 
Corporation and outlines the restrictions for the end use of 
this material.
    Subsection (d) specifies the manner in which the Department 
of Energy may undertake inventory sales and transfers from its 
stockpile. To enhance the competitiveness of the uranium 
enrichment market, it is the intent of Congress that the 
Secretary shall sell material directly into the market in lots 
of a size that end users can bid on it.
    Subsection (e) allows specific government transfers of 
enriched uranium to: (1) a Federal agency if the material is 
transferred for the use of the receiving agency without any 
resale or transfer to another entity and the material does not 
meet commercial specifications; (2) any person for national 
security purposes, as determined by the Secretary; or (3) any 
state or local agency or nonprofit, charitable, or educational 
institution for use other than the generation of electricity 
for commercial use.
    Subsequent (f) notes that nothing in the act shall be read 
to modify the terms of the Russian HEU Agreement.

Sec. 13--Low-level waste

    The interstate low-level radioactive waste compacts of 
which Kentucky and Ohio are a part never envisioned or planned 
to accommodate the disposal of low-level radioactive waste 
generated from uranium enrichment and the operation of the 
gaseous diffusion plants since such wastes were expected to 
remain the responsibility of the Department of Energy. 
Therefore, paragraph (1) of subsection (a) directs the 
Secretary of Energy, at the request of the Corporation or any 
domestic NRC-licensed generator of low-level radioactive waste 
from enrichment activities, to accept for disposal low-level 
radioactive waste, including depleted uranium if it is 
ultimately determined to be low-level radioactive waste.
    Paragraph (2) of subsection (a) provides that the generator 
of the waste accepted for disposal by the Department of Energy 
pursuant to paragraph 1, shall reimburse the Secretary for the 
costs incurred by the Secretary for the disposal of the low-
level radioactive waste, including a pro rata share of any 
capital costs--but in no event more than an amount equal to 
that which would be charged by commercial, State, regional, or 
interstate compact entities for disposal of such waste.
    In the event depleted uranium is ultimately determined to 
be low-level radioactive waste, the generator shall reimburse 
the Secretary for the costs incurred by the Secretary for the 
disposal of depleted uranium pursuant to paragraph (1) in a 
amount equal to the Secretary's costs, including a pro rata 
share of any capital costs.
    Subsection (b) specifies, however, that a generator may 
also enter into agreements for the disposal of low-level 
radioactive waste with any person other than the Secretary that 
is authorized by applicable laws and regulations to dispose of 
such wastes.
    Subsection (c) makes clear that notwithstanding any other 
provision of law, including the Low-Level Radioactive Policy 
Act, as amended, that no State or interstate compact shall be 
liable for the treatment, storage, or disposal of any low-level 
radioactive waste (including mixed waste) attributable to the 
operation, decontamination, and decommissioning of any uranium 
enrichment facility.

Sec. 14--AVLIS

    Atomic Vapor Laser Isotope Separation (AVLIS) enrichment 
technology is a promising, low cost enrichment technology that 
had been studied but not deployed by the Department of Energy. 
This section was originally enacted as section 1602 of the 
Energy Policy Act of 1992. Subsection (a) grants the 
Corporation the exclusive commercial right to deploy and use 
any AVLIS patents, processes, and technical information owned 
or controlled by the Government, upon completion of a royalty 
agreement with the Secretary. The Secretary and the Corporation 
have entered into an agreement dated April 27, 1995. Nothing in 
this section is intended to modify that agreement.
    Subsection (b) directs the transfer of directly related and 
materially useful properties related to AVLIS and other 
alternative enrichment technologies to the Corporation.
    Subsection (c) specifies that the Corporation shall bear 
the liabilities for patent and similar claims related to AVLIS, 
but that reductions of royalty payments shall offset any 
resulting payments, awards, settlements or judgments.

Sec. 15--Gaseous diffusion technology

    Subsection (a) directs that the Corporation shall have the 
exclusive commercial rights for both uranium enrichment and 
non-uranium enrichment uses of any patents, patent 
applications, trade secrets, and other technical information 
related to the gaseous diffusion technology owned or controlled 
by the Department of Energy, or by the United States but under 
control or custody of the Department of Energy.
    Further, subsection (a) directs the Corporation to enter 
into an exclusive licensing agreement with the Department of 
Energy providing for royalty payments of 3% of the gross 
revenues realized by the Corporation from its non-uranium 
enrichment commercial uses of such patents, patent 
applications, trade secrets, and other technical information, 
and for the reduction of such royalty payments to offset any 
payments, awards, settlements or judgments involving the 
Corporation's deployment or licensing of its rights under this 
section.
    Subsection (b) clarifies that any new patents, trade 
secrets, and other technical information developed for 
commercial applications that derive from the gaseous diffusion 
technology initially licensed by the Corporation shall be at 
the Corporation's expense and shall be free from royalties to 
the Department of Energy.

Sec. 16--Application of certain laws

    Section 16(a) ensures that upon privatization, the 
Corporation will be subject to the Occupational Safety and 
Health Act of 1970 to the same extent as all other private 
employers in the nuclear industry. Nothing in this subsection 
limits, restricts or otherwise affects the statutory authority 
of the NRC over radiological hazards at the Corporation's work 
sites.
    Section 16(b) provides that for purposes of the antitrust 
laws, the performance by the private corporation of certain 
``matched import'' agreements shall be considered to have 
occurred prior to the privatization date. This provision 
ensures that with respect to this narrow class of agreements, 
the private corporation should not be subject to antitrust 
liability for performance of agreements approved by the 
Department of Commerce and entered into by the Corporation 
while it enjoyed immunity from antitrust laws.
    Section 16(c) maintains existing provisions in the Energy 
Policy Act of 1992 that clarify that the private corporation 
and its operating contractor will remain subject to section 211 
of the Energy Reorganization Act to the same extent as an 
employer subject to section 211 and that, with respect to the 
operation of the gaseous diffusion plants, section 206 of the 
Energy Reorganization Act will remain applicable to the 
directors and officers of the private corporation.

Sec. 17.--Amendments to the Atomic Energy Act

    Subsection (a) repeals, as of the privatization date, 
chapters 22 through 26 of the Atomic Energy Act which related 
to the formation and operation of the Corporation as a wholly 
owned Government corporation. These provisions will be 
unnecessary after privatization.
    Subsection (b) addresses certain issues related to NRC 
licensing. Paragraphs (1) and (4) will subject uranium 
enrichment facilities using the AVLIS technology to the same 
licensing requirements as other uranium enrichment facilities. 
Paragraph (1) amends the definition of the term ``production 
facility'' set forth in section 11 of title I of the Atomic 
Energy Act 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. Paragraph (4) clarifies that any uranium enrichment 
facility using AVLIS technology would be eligible for one-step 
licensing under the materials licensing provisions of sections 
53, 63 and 193 of the Atomic Energy Act.
    Paragraph (2) amends section 193 of the Atomic Energy Act 
by adding a new subsection (f) that provides that no license or 
certificate of compliance may be issued by the NRC to the 
Corporation or its successor under sections 53, 63, 193 or 1701 
if in the opinion of the NRC the issuance of such license or 
certificate would be inimical to the common defense or security 
of the United States or would be inimical to the maintenance of 
a reliable and economical domestic source of enrichment 
services because of the nature and extent of the ownership, 
control, or domination of the Corporation by a foreign 
corporation or a foreign government or any other relevant 
factors or circumstances.
    Paragraph (3) amends section 1701(c)(2) of the Atomic 
Energy Act to provide that the Corporation be required to apply 
to the NRC for a certificate of compliance periodically rather 
than annually. With periodic certification, the NRC would have 
the flexibility to determine the appropriate length of 
certification, not to exceed five years.
    Paragraph (4) amends section 1702(a) of the Atomic Energy 
Act to provide that Corporation facilities using AVLIS 
technology will be licensed under sections 53, 63, and 193 of 
the Atomic Energy Act to allow for one-step licensing, 
consistent with the licensing requirements of other uranium 
enrichment facilities.
    Subsection (c) amends section 189b. of the Atomic Energy 
Act to make NRC certification related decisions and rules 
subject to judicial review directly in the courts of appeals, 
consistent with the judicial review of final NRC licensing and 
related rulemaking determinations.
    Similarly, subsection (d) amends section 234a. of the 
Atomic Energy Act to extend NRC's authority to assess civil 
monetary penalties to violations of the NRC's certification 
requirements, consistent with NRC's authority to assess such 
penalties for violations of NRC licensing requirements.
    Subsection (e) provides that following privatization all 
references in the Atomic Energy Act to the Corporation shall be 
deemed to be references to the private corporation.

Sec. 18.--Amendments to other laws

    Section 18 amends, as of the privatization date, the 
provisions of 31 U.S.C. 9101 to reflect the Corporation's 
private status.

                   Cost and Budgetary Considerations

    The following estimate of costs has been provided by the 
Congressional Budget Office.
                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, November 20, 1995.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources, U.S. Senate, 
        Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 755, the USEC 
Privatization Act.
    Enacting S. 755 would affect direct spending; therefore, 
pay-as-you-go procedures would apply.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.

               Congressional Budget Office Cost Estimate

    1. Bill number: S. 755.
    2. Bill title: USEC Privatization Act.
    3. Bill status: As ordered reported by the Senate Committee 
on Energy and Natural Resources on September 21, 1995.
    4. Bill purpose: S. 755 would provide a legislative 
framework for converting the United States Enrichment 
Corporation (USEC) from federal to private ownership and for 
resolving various policy issues related to the uranium 
industry. The bill would divide assets and liabilities of the 
corporation between the federal government and a privatized 
corporation, clarifying responsibility for employee benefits, 
the disposal of low-level radioactive wastes, the purchase and 
marketing of materials derived from highly enriched uranium 
(HEU) from U.S. and Russian nuclear warheads, and other 
corporate activities. Under this bill, the private corporation 
would be given the exclusive commercial rights to certain 
patents and related information owned by DOE for gaseous 
diffusion process (GDP) technology and the rights to certain 
licenses and assets related to Advanced Laser Isotope 
Separation technology developed by the federal government.
    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 because of 
numerous policy and contractual concerns. Hence, CBO believes 
that USEC would remain a government-owned entity under current 
law and that enacting the bill would be sufficient to remove 
the policy impediments to privatization. Under S. 755, 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 S. 755 would lead to a sale 
of USEC over the 1996-1997 period, and that completing the sale 
would have the budgetary impact shown in the following table.

----------------------------------------------------------------------------------------------------------------
                                                        1995      1996      1997      1998      1999      2000  
----------------------------------------------------------------------------------------------------------------
                                                                                                                
            Receipts From Asset Sales \1\                                                                       
                                                                                                                
    Estimate budget authority.......................  ........      -500    -1,150       -21       -54       -55
    Estimated outlays...............................  ........      -500    -1,150       -21       -54       -55
                                                                                                                
                   Direct Spending                                                                              
                                                                                                                
Spending under current law:                                                                                     
    Estimate budget authority.......................  ........  ........  ........  ........  ........  ........
    Estimated outlays...............................      -355      -183       -88        10        88       159
Proposed changes:                                                                                               
    Estimate budget authority.......................  ........  ........  ........  ........  ........  ........
    Estimated outlays...............................  ........       306         8       -10       -88      -159
Spending under S. 755:                                                                                          
    Estimate budget authority.......................  ........  ........  ........  ........  ........  ........
    Estimated outlays...............................      -355       123       -80  ........  ........  ........
----------------------------------------------------------------------------------------------------------------
\1\ Under the 1996 budget resolution, proceeds from asset sales are counted in the budget totals for purposes of
  Congressional scoring. Under the Balanced Budget Act, however, proceeds from asset sales are not counted in   
  determining compliance with the discretionary spending limits or pay-as-you-go requirements.                  

    The costs of this bill fall within budget function 270.
    6. Basis of estimate: CBO estimates that privatizing USEC 
would have the effect of reducing federal outlays by a total of 
$1,723 million over the 1996-2000 period. Most of this total 
would be derived from selling USEC to the private sector. Based 
on the information provided by USEC, DOE, and the Department of 
the Treasury, we estimate that privatization through a stock 
offering or merger would yield about $1.65 billion in asset 
sale proceeds over fiscal years 1996 and 1997, net of any 
transfer of cash balances held at the Treasury. That estimate 
of sale proceeds includes an estimated $100 million resulting 
from the proposed transfer of 50 metric tons of U.S. HEU and 
7,000 metric tons of natural uranium from DOE to the 
corporation prior to privatization. (The estimate excludes the 
value of selling additional uranium to be derived from Russian 
HEU, which is shown separately for fiscal years 1998-2000 and 
is discussed below.) The 1996-1997 total of $1.65 billion in 
asset sale proceeds also includes about $50 million for the 
rights to the GDP technology. While $1.65 billion represents 
CBO's best estimate of the net proceeds, the net sales price 
could range from $1.3 billion to $1.9 billion, depending on how 
potential purchasers value USEC's contracts, assets, and 
prospects for the future.
    Direct spending for USEC's operations as a government 
corporation would change as a result of privatization and other 
legislative directives. USEC's direct spending is projected to 
increase by $306 million in 1996 and $8 million in 1997 because 
of the costs associated with sale transactions, the equipment 
and facility upgrades necessary to complete the sale, and the 
requirement in this bill to transfer to DOE without charge the 
natural uranium associated with at least 18 metric tons of HEU 
purchased from Russia. Once USEC is sold, its net spending 
under current law would no longer be part of the federal 
budget. CBO estimates that the resulting savings would total 
about $260 million over the 1998-2000 period.
    CBO estimates that DOE's sale of the natural uranium 
derived from the 18 metric tons of Russian HEU transferred by 
USEC would result in asset sale proceeds totaling $130 million 
over the 1998-2000 period. Under this bill, DOE would be 
required to sell and receive payment for these materials within 
seven years after enactment subject to certain conditions. 
Based on information provided by industry and other sources, we 
assume that DOE would sell most of the materials for use in 
foreign markets over the 1998-2002 period and would be paid at 
rates comparable to the current prices for such materials.
    7. Pay-as-you-go considerations: Section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts through 1998. CBO estimates that enacting 
S. 755 would affect direct spending; therefore, pay-as-you-go 
procedures would apply.
    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, $1,150 million in 1997, and $21 million 
in 1998. Under current law, the receipts from nonroutine asset 
sales would not count as an offset to direct spending for pay-
as-you-go purposes.
    In addition to the asset sale proceeds, the estimate of 
pay-as-you-go effects includes changes in direct spending by 
USEC. We estimate that direct spending would increase by $306 
million in 1996 and by $8 million in 1997, and would decrease 
by $10 million in 1998 (when USEC spending would no longer be 
included in the budget).

------------------------------------------------------------------------
                                              1996      1997      1998  
------------------------------------------------------------------------
Change in outlays.........................      -194    -1,142       -31
Change in receipts........................  ........     (\1\)  ........
------------------------------------------------------------------------
\1\ Not applicable.                                                     

    8. Estimated cost to State and local governments: None.
    9. 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 $1.65 billion. The difference in 
these estimates is largely attributable to the Administration's 
higher estimate of the value of the uranium materials proposed 
for the transfer from DOE to USEC prior to the sale. Other 
differences are due to provisions in the bill regarding the 
disposition of the natural uranium derived from 18 metric tons 
of Russian HEU and the transfer of rights to the GDP 
technology.
    10. Previous CBO estimate: On October 6, 1995, CBO provided 
an estimate for provisions identical to those in S. 755 that 
were included in the reconciliation recommendations of the 
Senate Committee on Energy and Natural Resources, as ordered 
reported on September 21, 1995. The estimated budgetary effects 
of this bill through the year 2000 are the same as those 
estimated for the reconciliation proposal.
    On March 22, 1995, CBO provided an estimate for H.R. 1216, 
the USEC Privatization Act, as ordered reported by the House 
Committee on Commerce on March 15, 1995. H.R. 1216 did not 
include a provision for transfer of the rights to GDP 
technology, nor did it include any provision regarding the 
disposition of natural uranium from Russian HEU. The estimates 
reflect these differences.
    11. Estimate prepared by: Kathleen Gramp.
    12. Estimate approved by: Robert H. Sunshine for Paul N. 
Van de Water, Assistant Director for Budget Analysis.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 755. The bill is not a regulatory measure in 
the sense of imposing Government established standards or 
significant economic responsibilities on private individuals 
and businesses. Rather, the bill facilitates the sale of a 
Government asset through the transfer of ownership of the 
United States Enrichment Corporation to the private sector. The 
Corporation currently is subject to regulation by a number of 
Federal and State agencies, including the Nuclear Regulatory 
Commission, the Occupational Safety and Health Administration 
and the Environmental Protection Agency. Enactment of the bill 
and the privatization of the Corporation will not significantly 
change such regulation.
    The bill does not contain any provision for the collection 
of personal information. Accordingly, the bill will not have 
any impact on personal privacy. In addition, little if any 
additional paperwork should result from the enactment of S. 
755.

                        Executive Communications

    The pertinent legislative reports and communications 
received by the Committee from the United States Enrichment 
Corporation, a government corporation, setting forth Executive 
agency recommendation relating to S. 755 are set forth below:

                               U.S. Enrichment Corporation,
                                       Bethesda, MD, June 19, 1995.
Hon. Albert Gore, Jr.,
President of the Senate,
Washington, DC.
    Dear Mr. President: In furtherance of the Administration's 
commitments made at the June 13 Hearing on S. 755 before the 
Senate Committee on Energy and Natural Resources, we are 
pleased to provide you with the Administration's views on the 
legislation relating to the privatization of the United States 
Enrichment Corporation (USEC). These views are presented in the 
form of a draft bill that would amend the Atomic Energy Act of 
1954.
    As you know, USEC was established by the Energy Policy Act 
of 1992 as a wholly owned Government corporation to assume 
responsibility for the Department of Energy's (DOE) uranium 
enrichment enterprise. The Energy Policy Act provides for the 
privatization of USEC and directs the Corporation to submit a 
strategic plan for privatization to the President and Congress 
by July 1, 1995. The President's FY 1996 Budget provides for 
this privatization, and we will be submitting the strategic 
plan to the President and Congress shortly.
    Although the Energy Policy Act provides for USEC's 
privatization without the enactment of additional legislation, 
both the Congress and the Administration recognize that certain 
changes to existing law would smooth USEC's transition to the 
private sector while maximizing the return to the Government 
and taxpayers from the privatization of USEC. The enclosed 
amendments address a number of important issues relating to 
USEC's privatization, including: NRC licensing of an AVLIS 
facility, USEC's ability to dispose of low-level radioactive 
waste, responsibility for liabilities associated with USEC's 
operation while owned by the Government, the transfer of 
contracts from the Government to USEC, the transfer of DOE 
excess uranium to USEC, DOE's authority to sell enriched 
uranium, the status of matched sales agreements entered into by 
USEC and confirmed by the Department of Commerce prior to 
privatization, employee benefits, and foreign ownership 
limitations on USEC.
    The Balanced Budget and Emergency Deficit Control Act of 
1985 requires that all revenue and direct spending legislation 
meet a pay-as-you-go requirement through FY 1998. That is, such 
legislation should not result in an increase in the deficit; 
and if it does it would trigger a sequester if not fully 
offset. The privatization of USEC is expected to result in net 
proceeds totalling approximately $1.75 billion over FYs 1996-
1998. Under the enclosed amendments, up to $1.6 billion of such 
proceeds would be made available for radioactive waste disposal 
under the Nuclear Waste Policy Act of 1982. A provision of the 
Balanced Budget Act generally prohibits counting the proceeds 
of asset sales as offsets to spending. However, the enclosed 
amendments include a provision to allow the proceeds to be 
counted as offsets to spending. This provision is patterned 
after the waivers of emergency spending provided by the 
Balanced Budget Act and is proposed for several asset sales 
being recommended by the Administration for FY 1996.
    One aspect of pending privatization legislation that is not 
addressed in the enclosed amendments is section 6 of S. 755. 
That section speaks to the disposition of the natural uranium 
component of highly enriched uranium from nuclear weapons of 
the former Soviet Union being purchased under the government-
to-government agreement between the United States and the 
Russian Federation (Russian HEU Agreement). As expressed at the 
June 13 Hearing, the Administration has serious concerns about 
the feasibility of the solution set forth in S. 755 and its 
potential to threaten continued implementation of the Russian 
HEU Agreement.
    The Administration's is committed to making the Russian HEU 
Agreement a success and, as Department of Energy Under 
Secretary Curtis advised at the June 13 Hearing, will be 
engaging this issue with the Russian Federation over the next 
several weeks in connection with your meeting with Prime 
Minister Chernomyrdin. We would expect to submit to you the 
Administration's approach to this important issue in that time 
frame.
    We appreciate the Committee's commitment to work with the 
Administration to address this and other issues relating to the 
privatization of USEC. Our aim, like yours, is to ensure that 
USEC's privatization is a success for all concerned.
    The Office of Management and Budget advises that the 
enactment of this legislation would be in accord with the 
program of the President.
            Sincerely,
                                            William H. Timbers, Jr.
    Enclosure.

   A BILL To amend the Atomic Energy Act of 1954 to provide for the 
       privatization of the United States Enrichment Corporation

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

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. 2014v.), 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 (13) through (16), 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 2(9) of the Low-
        Level Radioactive Waste Policy Amendments Act of 1985 
        (42 U.S.C. 2021b(9)).
          ``(11) The term `privatization' means the transfer of 
        ownership of the Corporation to private investors 
        pursuant to chapter 25.
          ``(12) 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 (16) (as 
        redesignated) the following new paragraph:
          ``(17) The term `transition date' means July 1, 
        1993.''; and
          (4) by redesignating the unredesignated paragraph 
        (14) as paragraph (18).

SEC. 4. EMPLOYEES OF THE CORPORATION.

    (a) Paragraphs (1) and (2).--Paragraphs (1) and (2) of 
section 1305(e) (42 U.S.C. 2297b-4(e)(1) and (2)) are amended 
to read as follows:
          ``(1) Continuation of accrued, vested pension 
        benefits.--Privatization shall not diminish the 
        accrued, vested pension benefits of employees of the 
        Corporation's operating contractor at the two gaseous 
        diffusion plants.
          ``(2) Continuation of collective bargaining 
        agreement.--Privatization shall not affect the validity 
        or enforceability of any current collective bargaining 
        agreement to which the Corporation's operating 
        contractor at the two gaseous diffusion plants is a 
        party as of the privatization date. In the event that a 
        collective bargaining agreement has expired and is 
        being renegotiated at a facility on the privatization 
        date, the operating contractor shall continue to 
        observe its obligations under the National Labor 
        Relations Act.''.
    (b) Paragraph (4).--Paragraph (4) of section 1305(e) (42 
U.S.C. 2297b-4(e)(4)) is amended to read as follows:
          ``(4) Benefits of transferees.--
                  ``(A) Employees of the Corporation who were 
                subject to either the Civil Service Retirement 
                System (CSRS) or the Federal Employees' 
                Retirement System (FERS) on the day immediately 
                preceding the privatization date pursuant to 
                section 1305 as then in effect, still elect--
                          ``(i) to retain their coverage under 
                        CSRS or FERS, as applicable, in lieu of 
                        coverage by the Corporation's 
                        retirement system, or
                          ``(ii) to receive a deferred annuity 
                        or lump-sum benefit payable to a 
                        terminated employee under CSRS or FERS, 
                        as applicable.
                Those employees electing (ii) shall have the 
                option to transfer the balance in their Thrift 
                Savings Plan account to a defined contribution 
                plan under the Corporation's retirement system, 
                consistent with applicable law and the terms of 
                the Corporation's defined contribution plan.
                  ``(B) The Corporation shall pay to the Civil 
                Service Retirement and Disability Fund--
                          ``(i) such employee deductions and 
                        agency contributions as are required by 
                        sections 8334, 8422, and 8423 of title 
                        5, United States Code, for those 
                        employees who elect to retain their 
                        coverage under either CSRS or FERS 
                        pursuant to subparagraph (A);
                          ``(ii) such additional agency 
                        contributions as are determined 
                        necessary by the Office of Personnel 
                        Management to pay, in combination with 
                        the sums under subparagraph (i), the 
                        ``normal cost'' (determined using 
                        dynamic assumptions) of retirement 
                        benefits for those employees who elect 
                        to retain their coverage under CSRS 
                        pursuant to subparagraph (A), with the 
                        concept of ``normal cost'' being 
                        utilized consistent with generally 
                        accepted actuarial standards and 
                        principles; and
                          ``(iii) such additional amounts, not 
                        to exceed two percent of the amounts 
                        under subparagraphs (i) and (ii), as 
                        are determined necessary by the Office 
                        of Personnel Management to pay the cost 
                        of administering retirement benefits 
                        for employees who retire from the 
                        Corporation after the privatization 
                        date under either CSRS or FERS, for 
                        their survivors, and for survivors of 
                        employees of the Corporation who die 
                        after the privatization date (which 
                        amounts shall be available to the 
                        Office of Personnel Management as 
                        provided in section 8348(a)(1)(B) of 
                        title 5, United States Code).
                  ``(C) The Corporation shall pay to the Thrift 
                Savings Fund such employee and agency 
                contributions as are required by section 8432 
                of title 5, United States Code, for those 
                employees who elect to retain their coverage 
                under FERS pursuant to subparagraph (A).
                  ``(D) For those employees of the Corporation 
                who were subject to the Federal Employees 
                Health Benefits Program (FEHBP) on the day 
                immediately preceding the privatization date 
                pursuant to section 1305 as then in effect and 
                who elect to retain their coverage under either 
                CSRS or FERS pursuant to subparagraph (A), it 
                shall be their option as to whether to receive 
                health benefits from a health benefit plan 
                established by the Corporation or to continue 
                without interruption their coverage under the 
                FEHBP, in lieu of coverage by the Corporation's 
                health benefit system.
                  ``(E) The Corporation shall pay to the 
                Employees Health Benefits Fund--
                          ``(i) such employee deductions and 
                        agency contributions as are required by 
                        section 8900(a)-(f) of title 5, United 
                        States Code, for those employees who 
                        elect to retain their coverage under 
                        FEHBP pursuant to subparagraph (D); and
                          ``(ii) such amounts as are determined 
                        necessary by the Office of Personnel 
                        Management under subparagraph (F) to 
                        reimburse the Office of Personnel 
                        Management for contributions under 
                        section 8906(g)(1) of title 5, United 
                        States Code, for those employees who 
                        elect to retain their coverage under 
                        FEHBP pursuant to subparagraph (D).
                  ``(F) The amounts required under subparagraph 
                (E)(ii) shall pay the Government contributions 
                for retired employees who retire from the 
                Corporation after the privatization date under 
                either CSRS or FERS, for survivors of such 
                retired employees, and for survivors of 
                employees of the Corporation who die after the 
                privatization date, with said amounts prorated 
                to reflect only that portion of the total 
                service of such employees and retired employees 
                that was performed for the Corporation after 
                the privatization date.''

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(12) of the Atomic Energy Act of 1954) 
to read as follows:
    ``(a) Marketing Authority.--Except as provided in this 
section, the Department may not market enriched uranium 
(including low-enriched uranium derived from highly enriched 
uranium) and uranium enrichment and related services.
          ``(1) Right of first refusal.--The Department may 
        itself or through a marketing agent of its choice sell 
        enriched uranium (including low-enriched uranium 
        derived from highly enriched uranium) after the 
        privatization date using competitive bidding 
        procedures. After bids have been received through the 
        competitive bidding process, the Secretary may sell to 
        the Corporation the enriched uranium (including low-
        enriched uranium derived from highly enriched uranium) 
        for which the Department is seeking a purchaser if the 
        Corporation--
                  ``(A) offers purchase terms that, in the 
                judgment of the Secretary, exceed the highest 
                qualifying bid received by the Department or 
                its marketing agent; or
                  ``(B) offers terms that, in the judgment of 
                the Secretary, best serve the public interest 
                for financial, national security, or other 
                reasons.
          ``(2) Marketing agent.--Without using a competitive 
        process for selecting a marketing agent, the Department 
        may use the Corporation as its marketing agent for 
        entering into contracts for the sale of enriched 
        uranium (including low-enriched uranium derived from 
        highly enriched uranium).
          ``(3) Governmental transfers.--Nothing in this 
        section shall be construed to limit the authority of 
        the Secretary to transfer, in any manner the Secretary 
        deems appropriate, enriched uranium (including low-
        enriched uranium derived from highly enriched 
        uranium)--
                  ``(A) between the Department and other 
                Federal agencies if the material is transferred 
                solely for the use of the receiving agency 
                without any resale or transfer to another 
                entity and the material does not meet 
                commercial specifications;
                  ``(B) between the Department and any entity 
                or person for national security purposes, as 
                determined by the Secretary; or
                  ``(C) between the Department and state or 
                local agencies or nonprofit, charitable or 
                educational institutions for use other than for 
                the generation of electricity for commercial 
                use.
          ``(4) Cancellation of sale.--Nothing in this section 
        shall be interpreted to preclude the Secretary from 
        canceling a proposed sale for any reason.
          ``(5) Determination of excess.--Sales by the 
        Department under this section of highly enriched 
        uranium or low-enriched uranium derived from highly 
        enriched uranium shall not occur unless the Nuclear 
        Weapons Council has determined that the highly enriched 
        uranium is excess to national security needs.''.
    (b) Transfer of Contracts.--Section 1401(b) (42 U.S.C. 
2297c(b)) is amended--
          ``(1) in paragraph (2)(B), by adding at end the 
        following: ``The privatization of the Corporation shall 
        not affect the terms of, or the rights or obligations 
        of parties to, any such power purchase contract.''; and
          ``(2) by adding at the end thereof the following:
          ``(3) Effect of transfer.--
                  ``(A) All rights, privileges and benefits 
                under the contracts, agreements, and leases 
                transferred to the Corporation under subsection 
                (b)(1), including the right to amend, modify, 
                extend, revise or terminate any of such 
                contracts, agreements, or leases, were 
                irrevocable assigned to the Corporation for its 
                exclusive benefit under subsection (b)(1).
                  ``(B) Notwithstanding the transfer pursuant 
                to subsection (b)(1), the United States shall 
                remain obligated to the parties to the 
                contracts, agreements, and leases transferred 
                under subsection (b)(1) for the performance of 
                its obligations under such contracts, 
                agreements, and leases during their terms. 
                However, full performance by the Corporation 
                shall be considered full performance of the 
                United States' obligations under such 
                contracts, agreements, and leases.
                  ``(C) If a contract, agreement, or lease 
                transferred under subsection (b)(1) is 
                terminated, extended, or materially amended 
                after the privatization date--
                          ``(i) the Corporation shall be 
                        responsible for any obligation arising 
                        under that contract, agreement, or 
                        lease after any extension or material 
                        amendment, and
                          ``(ii) the United States shall be 
                        responsible for any obligation arising 
                        under the contract, agreement, or lease 
                        before the termination, extension, or 
                        material amendment.
                  ``(D) The Corporation shall reimburse the 
                United States for any amount paid by the United 
                States under a settlement agreement entered 
                into with the consent of the Corporation or 
                under a judgment, if the settlement or 
                judgment--
                          ``(i) arises out of an obligation 
                        under a contract, agreement, or lease 
                        transferred under subsection (b)(1); 
                        and
                          ``(ii) arises out of actions of the 
                        Corporation between the privatization 
                        date and the date of a termination, 
                        extension, or material amendment of 
                        such contract, agreement, or lease.''.
    (c) Leasing of Gaseous Diffusion Facilities of 
Department.--Effective on the privatization date (as defined in 
section 1201(12) 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.--
          ``(1) Responsibility of the department; costs.--
                  ``(A) The Department, at the request of the 
                Corporation, shall accept for disposal low-
                level radioactive waste, including depleted 
                uranium if it were ultimately determined to be 
                low-level radioactive waste, generated by the 
                Corporation as a result of the operations 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).
                  ``(B) Except as provided in subparagraph (C), 
                the Corporation shall reimburse the Department 
                for the disposal of low-level radioactive waste 
                pursuant to subparagraph (A) in an amount equal 
                to the Department's costs, including a pro rata 
                share of any capital 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 
                disposal of such waste.
                  ``(C) In the event depleted uranium were 
                ultimately determined to be low-level 
                radioactive waste, the Corporation shall 
                reimburse the Department for the disposal of 
                depleted uranium pursuant to subparagraph (A) 
                in an amount equal to the Department's costs, 
                including a pro rata share of any capital 
                costs.
          ``(2) Agreements with other persons.--The Corporation 
        may also enter into agreements for the disposal of low-
        level radioactive 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 dispose of such wastes.''.
    (d) Liabilities.--Effective on the privatization date (as 
defined in section 1201(12) of the Atomic Energy Act of 1954), 
section 1406 (42 U.S.C. 2297c-5) is amended to read as 
follows--
    ``(a) Liabilities Based on Operations Before Transition and 
Privatization.--
          ``(1) Except as otherwise provided in this Act, all 
        liabilities arising out of the operation of the uranium 
        enterprise before the transition date shall remain 
        direct liabilities of the Department. With respect to 
        those liabilities that remain liabilities of the United 
        States under paragraph (2), the Department shall be 
        directly liable only for the depleted uranium generated 
        by the operation of the Corporation between the 
        transition date and the privatization date.
          ``(2) All liabilities arising out of the operation of 
        the Corporation from the transition date to the 
        privatization date, except those liabilities identified 
        as being liabilities of the Corporation in a Memorandum 
        of Agreement entered into by the Corporation and the 
        Office of Management and Budget prior to the 
        privatization date, shall remain direct liabilities of 
        the United States.
          ``(3) To the extent that any claim against the United 
        States, as defined in paragraph (2), is of the type 
        otherwise required by federal statute or regulation to 
        be presented to a federal agency or official for 
        adjudication or review, such claim shall be presented 
        to the Department in accordance with procedures to be 
        established by the Secretary. Nothing in this paragraph 
        shall be construed to impose on the Department 
        liability to pay any claim presented pursuant to this 
        paragraph.
    ``(b) Representation.--With regard to any action seeking to 
impose liability under subsection (a) of this section, the 
United States shall be represented by the Department of 
Justice.
    ``(c) Liabilities Based on Operations After 
Privatization.--Except as otherwise provided in this Act, 
including section 1401(b), the Corporation shall be liable for 
its operations after the privatization date to the same extent 
as a private corporation under applicable law.''
    (e) Transfer of Uranium.--Title II (42 U.S.C. 2297 et seq.) 
is amended by redesignating section 1408 as section 1409 and 
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. Transfers of 
highly enriched uranium shall occur only after the highly 
enriched uranium has been declared excess to national security 
needs by the Nuclear Weapons Council.''.

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) 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.--Subject to applicable licensing, 
        certification, and other requirements under this Act, 
        and in the same manner as any other private party, 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 
                is permitted by the law of the jurisdiction of 
                incorporation of the corporation.
          ``(3) Activities prior to privatization.--Prior to 
        privatization, the activities of the corporation 
        established pursuant to subsection (a)(1) shall be 
        limited to those contemplated by the privatization plan 
        approved by the President under section 1502(b).
          ``(4) Transfer of assets.--Contemporaneous with the 
        privatization, the Corporation may transfer some or all 
        of its assets and obligations and records to the 
        corporation established pursuant to this section, 
        including--
                  ``(A) all of the Corporation's assets and 
                obligations, including all of the Corporation's 
                rights, duties, and obligations accruing 
                subsequent to the privatization date under 
                contracts, agreements, and leases entered into 
                by the Corporation before the privatization 
                date, 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);
                  ``(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; and
                  ``(E) all of the Corporation's records, 
                including all of the papers and other 
                documentary materials, regardless of physical 
                form or characteristics, made or received by 
                the Corporation.
          ``(5) Merger or consolidation.--Contemporaneous with 
        the privatization, the Corporation may merge or 
        consolidate with the corporation established pursuant 
        to subsection (a)(1) if such action is authorized 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.
    ``(b) OSHA Requirements.--As of the privatization date, the 
Corporation shall be subject to and comply with the 
Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et 
seq.). The Nuclear Regulatory Commission and the Occupational 
Health and Safety Administration shall, within 90 days after 
the enactment of this Act, enter into a Memorandum of Agreement 
regarding the determination and exercise of their authority 
over occupational safety and health hazards at the gaseous 
diffusion plants, including inspection, investigation, 
enforcement, and rulemaking regarding such hazards.
    ``(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. For 
        purposes of United States antitrust laws, the 
        performance by the corporation established pursuant to 
        subsection (a)(1) of a `matched import' contract shall 
        be considered to have occurred prior to the 
        privatization date, if at the time of privatization, 
        such contract had been agreed to by the parties in all 
        material terms and confirmed by the United States 
        Department of Commerce under the Amendment to the 
        Agreement Suspending the Antidumping Investigation on 
        Uranium from the Russian Federation, Department of 
        Commerce Investigation No. A-821-802, dated March 11, 
        1994.
          ``(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 on the 
date shares are first offered to the public pursuant to such 
public offering.
    ``(e) Dissolution.--In the event that the privatization 
does not occur, the Corporation will provide for the 
dissolution of the corporation established pursuant to 
subsection (a)(1) within 1 year of the corporation's 
incorporation unless the Secretary of the Treasury or his 
delegate, upon the Corporation's request, agrees to delay any 
such dissolution for an additional year.''.
    ``(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 any 
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 in any civil proceeding to 
any party in connection with any action taken in connection 
with the privatization if, with respect to the subject matter 
of the action, suit, or proceeding, such person was acting 
within the scope of his employment.
    ``(b) Exception.--The exemption set forth in subsection (a) 
shall not apply to claims arising under the Securities Act of 
1933, the Securities Exchange Act of 1934, 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.
    ``(c) Securities Laws Applicable.--Any offering or sale of 
securities by the corporation established pursuant to section 
1503(a)(1) shall be subject to the Securities Act of 1933, the 
Securities Exchange Act of 1934 and the provisions of the 
Constitution and laws of any State, territory, or possession of 
the United States relating to transactions in securities.''.
    ``(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, officer, or employee 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.
    ``(c) Energy Reorganization Act Requirement.--The 
corporation established pursuant to section 1503(a)(1) shall be 
subject to the provisions of section 211 of the Energy 
Reorganization Act of 1974 (42 U.S.C. 5851) to the same extent 
as an employer subject to such section.''.
    ``(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.

    ``(a) Nuclear Waste Fund Availability.--
          ``(1) If the condition in subsection (b)(2) is met, 
        the net proceeds from the sale of the Corporation under 
        this chapter which are deposited in a special fund in 
        the Treasury under subsection (b)(1) may be used by the 
        Department for radioactive waste disposal activities 
        under the Nuclear Waste Policy Act of 1982. No more 
        than the following amounts shall be made available in 
        the fiscal year specified--
                  ``(A) for fiscal year 1996; $431,600,000;
                  ``(B) for fiscal year 1997; $540,000,000; and
                  ``(C) for fiscal year 1998, $627,400,000.
        For purposes of this section, the net proceeds are the 
        revenues derived from the sale of Corporation stock, 
        based upon its sales price less cash payments to the 
        purchasers and less the value assigned to highly 
        enriched and natural uranium transferred from the 
        Department of the Corporation after February 1, 1995, 
        as specified in the stock offering prospectus of the 
        Corporation. In determining net proceeds, the cash and 
        the value of highly enriched uranium shall be prorated 
        in proportion to the amount of stock that is sold to 
        non-Federal entities.
          ``(2) In addition to the amounts in paragraph (1), 
        amounts deposited in the Nuclear Waste Fund in fiscal 
        years 1996, 1997, and 1998 resulting from any increase 
        in the fee established under the section shall be 
        available to the Department for expenditure for 
        radioactive waste disposal activities under the Nuclear 
        Waste Policy Act of 1982.
          ``(3) Amounts available under this section shall 
        remain available until expended, without further 
        appropriation but within any specific directives and 
        limitations included in appropriations Acts. Amounts 
        for radioactive waste disposal activities shall be 
        included in the annual budget submitted to Congress for 
        Nuclear Waste Fund activities.
    ``(b) Offsets.--
          ``(1) The net proceeds from the sale of all stock of 
        the Corporation shall be deposited in a special fund in 
        the Treasury and be available for the purposes 
        specified in subsection (a).
          ``(2) If the President so designates, the net 
        proceeds shall be included in the budget baseline 
        required by the Balanced Budget and Emergency Deficit 
        Control Act of 1985 and shall be counted for the 
        purposes of section 252 of such Act as an offset to 
        direct spending, notwithstanding section 257(e) of such 
        Act.
    ``(c) Reimbursement of Costs.--the Secretary of the 
Treasury shall be reimbursed up to $1,800,000 from the proceeds 
of the sale of stock of the Corporation for reasonable costs 
related to the privatization incurred in Fiscal Year 1996.''.
    (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 Limitation.
``Sec. 1505. Exemption from Liability.
``Sec. 1506. Resolution of Certain Issues.
``Sec. 1507. Application of Privatization Proceeds.''.

    (g) Revision of Section 1502.--Section 1502 (42 U.S.C. 
2297d-1) is amended--
          (i) in subsection (d) 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)'', and
          (ii) by striking subsection (e).

SEC. 7. LICENSING AND REGULATION OF URANIUM ENRICHMENT FACILITIES.

    (a) 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.''
    (b) Licensing of Other Technologies.--Subsection (a) of 
section 1702 (42 U.S.C. 2297f-1(a)) is amended--
          (1) by striking ``other than'' and inserting 
        ``including'', and
          (2) by striking ``sections 53 and 63'' and inserting 
        ``sections 53, 63 and 193''.
    (c) Foreign Ownership Limitation.--Chapter 27 (as amended 
by subsection (b)) is amended by adding at the end the 
following new section:

``SEC. 1704. FOREIGN OWNERSHIP LIMITATION.

    ``No License or certificate of compliance may be issued to 
the Corporation under Sections 53, 63, 193, or 1701 if, in the 
opinion of the Nuclear Regulatory Commission, the issuance of 
such a license or certificate of compliance to the Corporation 
would be inimical to the common defense and security of the 
United States due to the nature and extent of the ownership, 
control or domination of the Corporation by a foreign 
corporation or a foreign government or any other relevant 
factors or circumstances.''

SEC. 8. JUDICIAL REVIEW OF NUCLEAR REGULATORY COMMISSION ACTIONS.

    Section 189b. of the Atomic Energy Act of 1954 (42 U.S.C. 
2239(b)) is amended to read as follows:
    ``b. The following Commission actions shall be subject to 
judicial review in the manner prescribed in 28 U.S.C. ch. 158, 
and 5 U.S.C. ch. 7:
          ``(1) any final order entered in any proceeding of 
        the kind specified in subsection a. above;
          ``(2) any final order allowing or prohibiting a 
        facility to begin operating under a combined 
        construction and operating license;
          ``(3) any final order establishing by regulation 
        standards to govern the gaseous diffusion uranium 
        enrichment facilities of the Department of Energy, 
        including any such facilities leased to a corporation 
        established pursuant to section 1503; and
          ``(4) any final determination relating to whether the 
        gaseous diffusion uranium enrichment facilities of the 
        Department of Energy, including any such facilities 
        leased to a corporation established pursuant to section 
        1503, are in compliance with the Commission's standards 
        governing the gaseous diffusion uranium enrichment 
        facilities of the Department of Energy and all 
        applicable laws.''

SEC. 9. CIVIL MONETARY PENALTIES FOR VIOLATIONS OF LICENSING OR 
                    CERTIFICATION REQUIREMENTS.

    (a) In general.--Subsection a. of section 234 of the Atomic 
Energy Act of 1954 (42 U.S.C. 2282(a)) is amended to read as 
follows:
    ``a. Civil Penalties.--
          ``(1) In general.--A person who--
                  ``(A) violates
                          ``(i) a licensing provision of 
                        section 53, 57, 62, 63, 81, 82, 101, 
                        103, 104, 107, or 109, or any rule, 
                        regulation, or order issued under the 
                        provision;
                          ``(ii) a certification provision of 
                        section 1701, or any rule or regulation 
                        issued under the provision; or
                          ``(iii) a term, condition, or 
                        limitation of a license or 
                        certification issued under a section 
                        referred to in clause (i) or (ii); or
                  ``(B) commits a violation for which a license 
                may be revoked under section 186 or a 
                certificate may be revoked under section 1701;
        shall be subject to a civil penalty, to be imposed by 
        the Commission, of not to exceed $100,000 for each such 
        violation.
          ``(2) Continuing violations.--If a violation 
        described in paragraph (1) continues for more than 1 
        day, each day of the violation shall constitute a 
        separate violation for the purpose of determining the 
        applicable civil penalty.
          ``(3) Modification of penalty.--The Commission may 
        compromise, mitigate, or remit a penalty required to be 
        imposed under this subsection.''.
    (b) Conforming Amendments.--
          (1) Section 234 of such Act (42 U.S.C. 2282) is 
        amended--
                  (A) in the section heading, by inserting ``or 
                Certification'' after ``Licensing'';
                  (B) by inserting after ``b.'' the following: 
                ``Notification by the Commission.--''; and
                  (C) by inserting after ``c.'' the following: 
                ``Action by the Attorney General.--''.
          (2) The table of contents of such Act (42 U.S.C. 
        prec. 2011) is amended by striking the item relating to 
        section 234 and inserting the following new item:

``Sec. 234. Civil monetary penalties for violations of licensing or 
          certification requirements.''.

SEC. 10. 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(12) 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 1407.
                  (F) Section 1601.
                  (G) 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 subsection (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.
    (d) Revision of Section 1309.--Section 1309 of the Atomic 
Energy Act of 1954 (42 U.S.C. 2297b-8) is amended to read as 
follows:

``SEC. 1309. BORROWING AUTHORITY PRIOR TO PRIVATIZATION.

    ``To the extent provided in annual appropriations acts and 
approved by the Secretary of the Treasury, the Corporation may 
issues notes or obligations to the Secretary of the Treasury to 
carry out the purposes of the Corporation under this title, 
except that the Corporation may not issue notes or obligations 
for the purpose of constructing new uranium enrichment 
facilities or conducting directly related preconstruction 
activities. The aggregate amount of any such notes or 
obligations outstanding at any one time shall not exceed $250 
million. The notes or obligations shall be in such forms and 
denominations, bearing such maturities, and subject to such 
terms and conditions, as may be prescribed by the Secretary of 
the Treasury. The notes or obligations shall bear interest at a 
rate determined by the Secretary of the Treasury, taking into 
consideration current market yields on outstanding obligations 
of the United States of comparable maturity.''.

                        Changes in Existing Law

               (as of the date of enactment of this bill)

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 755, as ordered 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):
                              ----------                              


                     THE ATOMIC ENERGY ACT OF 1954

        AN ACT for the development and control of atomic energy

          * * * * * * *

                         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:
          * * * * * * *
    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 or uranium or 
enriching uranium in the isotope 235.
          * * * * * * *

        CHAPTER 16. JUDICIAL REVIEW AND ADMINISTRATIVE PROCEDURE

          * * * * * * *

SEC. 189. HEARINGS AND JUDICIAL REVIEW.

          * * * * * * *
    b. [Any final order entered in any proceeding of the kind 
specified in subsection a. above or any final order allowing or 
prohibiting a facility to begin operating under a combined 
construction and operating license shall be subject to judicial 
review in the manner prescribed in the Act of December 29, 
1950, as amended (ch. 1189, 64 Stat. 1129), and to the 
provisions of section 10 of the Administrative Procedure Act, 
as amended.] The following Commission actions shall be subject 
to judicial review in the manner prescribed in chapter 158 of 
title 28, United States Code and chapter 7 of title 5, United 
States Code:
          (1) Any final order entered in any proceeding of the 
        kind specified in subsection (a).
          (2) Any final order allowing or prohibiting a 
        facility to begin operating under a combined 
        construction and operating license.
          (3) Any final order establishing by regulation 
        standards to govern the Department of Energy's gaseous 
        diffusion uranium enrichment plants, including any such 
        facilities leased to a corporation established under 
        the USEC Privatization Act.
          (4) Any final determination relating to whether the 
        gaseous diffusion plants, including any such facilities 
        leased to a corporation established under the USEC 
        Privatization Act, are in compliance with the 
        Commission's standards governing the gaseous diffusion 
        plants and all applicable laws.
          * * * * * * *

SEC. 193. LICENSING OF URANIUM ENCROACHMENT FACILITIES.

          * * * * * * *
    (f) Limitation.--No license or certificate of compliance 
may be issued to the United States Enrichment Corporation or 
its successor under sections 53, 63, 193, or 1701, if in the 
opinion of the Commission, the issuance of such a license or 
certificate of compliance--
          (i) would be inimical to the common defense and 
        security of the United States; or
          (ii) would be inimical to the maintenance of a 
        reliable and economical domestic source of enrichment 
        services because of the nature and extent of the 
        ownership, control, or domination of the Corporation by 
        a foreign corporation or a foreign government or any 
        other relevant factors or circumstances.
          * * * * * * *

                        CHAPTER 18. ENFORCEMENT

          * * * * * * *

SEC. 234. CIVIL MONETARY PENALTIES FOR VIOLATIONS OF LICENSING 
                    REQUIREMENTS.

    a. Any person who (1) violates [any licensing provision of 
section 53, 57, 62, 63, 81, 82, 101, 103, 104, 107, or 109] any 
licensing or certification provision of section 53, 57, 62, 63, 
81, 82, 101, 103, 104, 107, 109 or 1701 or any rule, 
regulation, or order issued thereunder, or any term, condition, 
or limitation of [any license issued thereunder] any license or 
certification issued thereunder, or (2) commits any violation 
for which a license may be revoked under section 186, shall be 
subject to a civil penalty, to be imposed by the Commission, of 
not to exceed $100,000 for each day of such violation. If any 
violation is a continuing one, each day of such violation shall 
constitute a separate violation for the purpose of computing 
the applicable civil penalty. The Commission shall have the 
power to compromise, mitigate, or remit such penalties.
          * * * * * * *

             TITLE II--UNITED STATES ENRICHMENT CORPORATION

          * * * * * * *

 CHAPTER 27--LICENSING AND REGULATION OF URANIUM ENRICHMENT FACILITIES

SEC. 1701. GASEOUS DIFFUSION FACILITIES.

          * * * * * * *
    (c) Certification Process.--
          (1) Establishment.--The Nuclear Regulatory Commission 
        shall establish a certification process to ensure that 
        the Corporation complies with standards established 
        under subsection (a).
          (2) [Annual] Periodic 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) 
        periodically, as determined by the 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.
          * * * * * * *

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] sections 
53, 63, and 193.
          * * * * * * *
                              ----------                              


AN ACT To provide for financial control of Government corporations [59 
                        Stat. 597; 31 USC 9101]

          * * * * * * *

Sec. 9101. Definitions

    In this chapter--
          * * * * * * *
          (3) ``wholly owned Government corporation'' means--
          * * * * * * *

               [(N) United States Enrichment Corporation]

                              ----------                              


 AN ACT To provide for improved energy efficiency [106 Stat. 2776; 42 
                            USC 13201 note]

          * * * * * * *

          TITLE X--REMEDIAL ACTION AND URANIUM REVITALIZATION

          * * * * * * *

                   Subtitle B--Uranium Revitalization

          * * * * * * *

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 
        or its successor.

                        Changes in Existing Law

       (as of the privatization of USEC as defined in this bill)

    Although it is considered unlikely by the Committee, it is 
conceivable that the privatization of USEC may not occur for 
some time, and might not occur at all. Below are the changes in 
existing law that would occur only upon privatization. 
Specifically, Chapters 22 through 26 of the Atomic Energy Act 
of 1954 (42 U.S.C. 1201-1608) would be repealed as of the 
privatization date.

                     THE ATOMIC ENERGY ACT OF 1954

        AN ACT for the development and control of atomic energy

          * * * * * * *

             TITLE II--UNITED STATES ENRICHMENT CORPORATION

          * * * * * * *

                    [CHAPTER 22--GENERAL PROVISIONS

[SEC. 1201. DEFINITIONS.

    [For purposes of this title:
          [(1) The term ``alternative technologies for uranium 
        enrichment'' means technologies to enrich uranium by 
        methods other than the gaseous diffusion process.
          [(2) The term ``AVLIS'' means atomic vapor laser 
        isotope separation technology.
          [(3) The term ``Board'' means the Board of Directors 
        of the Corporation established under section 1304.
          [(4) The term ``Corporation'' means the United States 
        Enrichment Corporation.
          [(5) The term ``corrective actions'' has the meaning 
        given such term by the Administrator of the 
        Environmental Protection Agency under section 3004(u) 
        of the Solid Waste Disposal Act (42 U.S.C. 6924(u)).
          [(6) The term ``decontamination and decommissioning'' 
        means those activities, other than response actions or 
        corrective actions, undertaken to decontaminate and 
        decommission inactive uranium enrichment facilities 
        that have residual radioactive or mixed radioactive and 
        hazardous chemical contamination, including depleted 
        tailings.
          [(7) The term ``Department'' means the Department of 
        Energy.
          [(8) The term ``highly enriched uranium'' means 
        uranium enriched to 20 percent or more of the uranium-
        235 isotope.
          [(9) The term ``low-enriched uranium'' means uranium 
        enriched to less than 20 percent of the uranium-235 
        isotope.
          [(10) 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) 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) The term ``response actions'' has the meaning 
        given the term `response' in section 101(25) of the 
        Comprenhensive Environmental Response, Compensation, 
        and Liability Act of 1980 (42 U.S.C. 9601(25)).
          [(13) The term ``Secretary'' means the Secretary of 
        Energy.
          [(14) The term ``uranium enrichment'' means the 
        separation of uranium of a given isotope content into 2 
        components, 1 having a higher percentage of a fissile 
        isotope and 1 having a lower percentage.

[SEC. 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

[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.

[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.

[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 sections 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.

[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;
                  [(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.).
          [(4) 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, 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.

[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.

[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.

[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.

[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.

[SEC. 1311. COOPERATION WITH OTHER AGENCIES.

    [The Corporation may request to use on a reimbursable basis 
2297b-10. 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.

[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 any 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 promulgate hereunder 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 crimininal 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.).

[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.

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.

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

[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. 
The Department may not market enriched uranium (including low-
enriched uranium derived from highly enriched uranium), or 
uranium enrichment and related services, after the transition 
date.
    [(b) Transfer of Contracts.--
          [(1) In general.--Except as provided in paragraph 
        (2), all contracts, agreements, and leases with the 
        Department, including all uranium enrichment contracts 
        and power purchase contracts, that have been executed 
        by the Department before the transition date and that 
        relate to uranium enrichment and related services shall 
        transfer to the Corporation.
          (2) Exceptions.--
                  [(A) TVA settlement.--The rights and 
                responsibilities of the Department under the 
                settlement agreement with the Tennessee Valley 
                Authority, filed on December 18, 1987, with the 
                United States Claims Court, shall not transfer 
                to the Corporation.
                  [(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.
                  [(C) Nonpower applications.--Contracts for 
                enriched uranium and uranium services in 
                existence as of the date of the enactment of 
                this title for research and development or 
                other nonpower applications shall remain with 
                the Department. At the request of the 
                Department, the Corporation, in consultation 
                with the Department, may enter into such 
                contracts it determines to be appropriate.

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

    [(a) In General.--The Corporation shall lease the Paducah 
Gaseous Diffusion Plant in Paducah, Kentucky, the Portsmouth 
Gaseous Diffusion Plant in Piketon, Ohio, and related property 
of the Department, for a period of 6 years from the transition 
date. Thereafter, the Corporation shall have the exclusive 
option to lease such facilities and related property for 
additional periods.
    [(b) Terms of Lease.--The Corporation and the Department 
shall set mutually agreeable terms for a lease under subsection 
(a), including specifying annual payments to the Department by 
the Corporation to be made. The amount of annual payments shall 
be equal to the cost incurred by the Department in 
administering the lease and providing services related to the 
lease to the Corporation (excluding depreciation and imputed 
interest on original plant investments in the Department's 
gaseous diffusion plants and costs under subsection (d)).
    [(c) Exclusion of Facilities for Production of Highly 
Enriched Uranium.--Subsection (a) shall not apply to Department 
facilities necessary for the production of highly enriched 
uranium. The Secretary may grant to the Corporation access to 
such facilities for purposes other than the production of 
highly enriched uranium.
    [(d) DOE Responsibility for Preexisting Conditions.--The 
payment of any costs of decontamination and decommissioning, 
response actions, or corrective actions with respect to 
conditions existing before the transition date, in connection 
with property of the Department leased under subsection (a), 
shall remain the sole responsibility of the Department.
    [(e) Environmental Audit.--The Secretary, in consultation 
with the Administrator of the Environmental Protection Agency, 
shall conduct a comprehensive environmental audit identifying 
environmental conditions that will remain the responsibility of 
the Department pursuant to subsection (d) after the transition 
date. Such audit shall be completed no later than the 
transition date.
    [(f) Treatment Under Price-Anderson Provisions.--Any lease 
executed between the Secretary and the Corporation under this 
section shall be deemed to be a contract for purposes of 
section 170 d.
    [(g) Waiver of EIS Requirement.--The execution of the lease 
by the Corporation and the Department shall not be considered a 
major Federal action significantly affecting the quality of the 
human environment for purposes of section 102 of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332).

[SEC. 1404. CAPITAL STRUCTURE OF CORPORATION.

    [(a) Capital Stock.--
          [(1) Issuance to secretary of 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 interested 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.

[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.

[SEC. 1406. LIABILITIES.

    [(a) Liabilities Based on Operations Before Transition.--
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.
    [(b) Judgments Based on Operations Before Transition.--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.
    [(c) Representation.--With regard to any claim seeking to 
impose liability under subsection (a) or (b), the United States 
shall be represented by the Department of Justice.
    [(d) Judgments Based on Operations After Transition.--Any 
judgment entered against the Corporation arising from 
operations of the Corporation on or after 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. 1407. TRANSFER OF URANIUM INVENTORIES.

    [The Secretary shall transfer to the Corporation without 
charge all raw and low-enriched uranium inventories of the 
Department necessary for the fulfillment of contracts 
transferred under section 1401(b).

[SEC. 1408. 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.
    [(b) Assessment of Potential Use.--The Corporation shall 
prepare an assessment of the potential use of highly enriched 
uranium in the business operations of the Corporation.
    [(c) Plan For Blending and Conversion.--In the event that 
the agreement under subsection (a) provides for the Corporation 
to provide for the blending and conversion the assessment shall 
include a plan for such blending and conversion. The plan shall 
determine the least-cost approach to providing blending and 
conversion services, compatible with environmental, safety, 
security, and nonproliferation requirements. The plan shall 
include a competitive process that the Corporation shall use 
for selecting a provider of such services, including the public 
solicitation of proposals from the private sector to allow a 
determination of the least-cost approach.
    [(d) Minimization of Impact on Domestic Industries.--The 
Corporation shall seek to minimize the impact on domestic 
industries (including uranium mining) of the sale of low-
enriched uranium derived from highly enriched uranium.]

             [CHAPTER 25--PRIVATIZATION OF THE CORPORATION

[SEC. 1501. STRATEGIC PLAN FOR PRIVATIZATION.

    [(A) In General.--Within 2 years after the transition date, 
the Corporation shall prepare a strategic plan for transferring 
ownership of the Corporation to private investors. The 
Corporation shall revise the plan as needed.
    [(b) Consideration of Alternative Means of Transferring 
Ownership.--The plan shall include consideration of alternative 
means for transferring ownership of the Corporation to private 
investors, including public stock offering, private placement, 
or merger or acquisition. The plan may call for the phased 
transfer of ownership or for complete transfer at a single 
point of time. If the plan calls for phased transfer of 
ownership, then--
          [(1) privatization shall be deemed to occur when 100 
        percent of ownership has been transferred to private 
        investors;
          [(2) prior to privatization, such stock shall be 
        nonvoting stock; and
          [(3) at the time of privatization, such stock shall 
        convert to voting stock.
    [(c) Evaluation and Recommendation.--The plan shall 
evaluate the relative merits of the alternatives considered and 
the estimated return on the Government's investment in the 
Corporation achievable through each alternative. The plan shall 
include the Corporation's recommendation on its preferred means 
of privatization.
    [(d) Transmittal.--The Corporation shall transmit copies of 
the strategic plan for privatization to the President and 
Congress upon completion.

[SEC. 1502. PRIVATIZATION.

    [(a) Implementation.--Subsequent to transmitting a plan for 
privatization pursuant to section 1501, and subject to 
subsections (b) and (c), the Corporation may implement the 
privatization plan if the Corporation determines, in 
consultation with appropriate agencies of the United States, 
that privatization will--
          [(1) result in a return to the United States at least 
        equal to the net present value of the Corporation;
          [(2) not result in the Corporation being owned, 
        controlled, or dominated by an alien, a foreign 
        corporation, or a foreign government;
          [(3) not be inimical to the health and safety of the 
        public or the common defense and security; and
          [(4) provide reasonable assurance that adequate 
        enrichment capacity will remain available to meet the 
        domestic electric utility industry.
    [(b) Requirement of Presidential Approval.--The Corporation 
may not implement the privatization plan without the approval 
of the President.
    [(c) Notification of Congress and GAO Evaluation.--The 
Corporation shall notify the Congress of its intent to 
implement the privatization plan. Within 30 days of 
notification, the Comptroller General shall submit a report to 
Congress evaluating the extent to which--
          [(1) the privatization plan would result in any 
        ongoing obligation or undue cost to the Federal 
        Government; and
          [(2) the revenues gained by the Federal Government 
        under the privatization plan would represent at least 
        the net present value of the Corporation.
    [(d) Period for Congressional Review.--The Corporation may 
not implement the privatization plan less than 60 days after 
notification of the Congress.
    [(e) Deposit of Proceeds.--Proceeds from the sale of 
capital stock of the Corporation under this section shall be 
deposited in the general fund of the Treasury.]

 [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 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. 1602. TRANSFER OF RIGHTS AND PROPERTY TO UNITED STATES ENRICHMENT 
                    CORPORATION.

    [(a) Exclusive Right To Commercialize.--The Corporation 
shall have the exclusive commercial right to deploy and use any 
AVLIS patents, processes, and technical information owned or 
controlled by the Government, upon completion of a royalty 
agreement with the Department.
    [(b) Transfer of Related Property to Corporation.--
          [(1) In general.--To the extent requested by the 
        Corporation, the President shall transfer without 
        charge to the Corporation all of the Department's 
        right, title, or interest in and to property owned by 
        the Department, or by the United States but under 
        control or custody of the Department, that is directly 
        related to and materially useful in the performance of 
        the Corporation's purposes regarding AVLIS and 
        alternative technologies for uranium enrichment, 
        including--
                  [(A) facilities, equipment, and materials for 
                research, development, and demonstration 
                activities; and
                  [(B) all other facilities, equipment, 
                materials, processes, patents, technical 
                information of any kind, contracts, agreements, 
                and leases.
          [(2) Exception.--Facilities, real estate, 
        improvements, and equipment related to the gaseous 
        diffusion, and gas centrifuge, uranium enrichment 
        programs of the Department shall not transfer under 
        paragraph (1)(B).
          [(3) Expiration of transfer authority.--The 
        President's authority to transfer property under this 
        subsection shall expire upon privatization under 
        section 1502.
    [(c) Liability for Patent and Related Claims.--With respect 
to any right, title, or interest provided to the Corporation 
under subsection (a) or (b), the Corporation shall have sole 
liability for any payments made or awards under section 157 b. 
(3), or any settlements or judgments involving claims for 
alleged patent infringement. Any royalty agreement under 
subsection (a) shall provide for a reduction of royalty 
payments to the Department to offset any payments, awards, 
settlements, or judgments under this subsection.

[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.

[SEC. 1608. EXCLUSION FROM PRICE-ANDERSON COVERAGE.

    [Section 170 shall not apply to any license under section 
53, 63, or 103 for a uranium enrichment facility constructed 
after the date of the enactment of this title.]