[House Report 106-694]
[From the U.S. Government Publishing Office]



106th Congress 
 2d Session             HOUSE OF REPRESENTATIVES         Report 106-694
                                                                 Part 2
_______________________________________________________________________

                                     



 
ENSURING THAT THE SECRETARY OF ENERGY MAY CONTINUE TO EXERCISE CERTAIN 
    AUTHORITIES UNDER THE PRICE-ANDERSON ACT THROUGH THE ASSISTANT 
    SECRETARY OF ENERGY FOR ENVIRONMENT, SAFETY, AND HEALTH OR THE 
                  ADMINISTRATOR FOR NUCLEAR SECURITY

                               ----------                              

                              R E P O R T

                                 OF THE

                      COMMITTEE ON ARMED SERVICES
                        HOUSE OF REPRESENTATIVES

                                   ON

                               H.R. 4446

      [Including cost estimate of the Congressional Budget Office]




 July 21, 2000.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed
                   HOUSE COMMITTEE ON ARMED SERVICES
                       One Hundred Sixth Congress

               FLOYD D. SPENCE, South Carolina, Chairman
BOB STUMP, Arizona                   IKE SKELTON, Missouri
DUNCAN HUNTER, California            NORMAN SISISKY, Virginia
JOHN R. KASICH, Ohio                 JOHN M. SPRATT, Jr., South 
HERBERT H. BATEMAN, Virginia             Carolina
JAMES V. HANSEN, Utah                SOLOMON P. ORTIZ, Texas
CURT WELDON, Pennsylvania            OWEN PICKETT, Virginia
JOEL HEFLEY, Colorado                LANE EVANS, Illinois
JIM SAXTON, New Jersey               GENE TAYLOR, Mississippi
STEVE BUYER, Indiana                 NEIL ABERCROMBIE, Hawaii
TILLIE K. FOWLER, Florida            MARTIN T. MEEHAN, Massachusetts
JOHN M. McHUGH, New York             ROBERT A. UNDERWOOD, Guam
JAMES TALENT, Missouri               PATRICK J. KENNEDY, Rhode Island
TERRY EVERETT, Alabama               ROD R. BLAGOJEVICH, Illinois
ROSCOE G. BARTLETT, Maryland         SILVESTRE REYES, Texas
HOWARD ``BUCK'' McKEON, California   TOM ALLEN, Maine
J.C. WATTS, Jr., Oklahoma            VIC SNYDER, Arkansas
MAC THORNBERRY, Texas                JIM TURNER, Texas
JOHN N. HOSTETTLER, Indiana          ADAM SMITH, Washington
SAXBY CHAMBLISS, Georgia             LORETTA SANCHEZ, California
VAN HILLEARY, Tennessee              JAMES H. MALONEY, Connecticut
JOE SCARBOROUGH, Florida             MIKE McINTYRE, North Carolina
WALTER B. JONES, Jr., North          CIRO D. RODRIGUEZ, Texas
    Carolina                         CYNTHIA A. McKINNEY, Georgia
LINDSEY GRAHAM, South Carolina       ELLEN O. TAUSCHER, California
JIM RYUN, Kansas                     ROBERT BRADY, Pennsylvania
BOB RILEY, Alabama                   ROBERT E. ANDREWS, New Jersey
JIM GIBBONS, Nevada                  BARON P. HILL, Indiana
MARY BONO, California                MIKE THOMPSON, California
JOSEPH PITTS, Pennsylvania           JOHN B. LARSON, Connecticut
ROBIN HAYES, North Carolina
STEVEN KUYKENDALL, California
DONALD SHERWOOD, Pennsylvania

                    Robert S. Rangel, Staff Director
                            C O N T E N T S

                              ----------                              
                                                                   Page

Purpose and Background...........................................     2
Legislative History..............................................     3
Section-by-Section Analysis......................................     3
  Section 1--Exercise of Certain Price-Anderson Act Authorities 
    Through the Assistant Secretary of Energy for Environment, 
    Safety, and Health or the Administrator for Nuclear Security.     3
Committee Position...............................................     3
Fiscal Data......................................................     3
  Congressional Budget Office Estimate...........................     4
  Committee Cost Estimate........................................     5
Oversight Findings...............................................     5
Constitutional Authority Statement...............................     5
Statement of Federal Mandates....................................     5
Record Vote......................................................     5
Changes in Existing Law Made by the Bill, as Reported............     5
106th Congress                                            Rept. 106-694
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 2

======================================================================




  TO CLARIFY THE MANNER IN WHICH THE SECRETARY OF ENERGY MAY EXERCISE 
 CERTAIN AUTHORITIES UNDER THE PRICE-ANDERSON ACT WITH RESPECT TO THE 
  NATIONAL NUCLEAR SECURITY ADMINISTRATION AND OTHER ELEMENTS OF THE 
                          DEPARTMENT OF ENERGY

                                _______
                                

                 July 21, 2000.--Ordered to be printed

                                _______
                                

    Mr. Spence, from the Committee on Armed Services, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 4446]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Armed Services, to whom was referred the 
bill (H.R. 4446) to ensure that the Secretary of Energy may 
continue to exercise certain authorities under the Price-
Anderson Act through the Assistant Secretary of Energy for 
Environment, Safety, and Health, having considered the same, 
report favorably thereon with amendments and recommend that the 
bill as amended do pass.
  The amendments are as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. EXERCISE OF CERTAIN PRICE-ANDERSON ACT AUTHORITIES THROUGH 
                    THE ASSISTANT SECRETARY OF ENERGY FOR ENVIRONMENT, 
                    SAFETY, AND HEALTH OR THE ADMINISTRATOR FOR NUCLEAR 
                    SECURITY.

  Section 234A of the Atomic Energy Act of 1954 (42 U.S.C. 2282a) is 
amended by adding at the end the following new subsection:
  ``e. With respect to any element of the Department of Energy other 
than the National Nuclear Security Administration, the Secretary may 
exercise any authority under this section through the Assistant 
Secretary of Energy for Environment, Safety, and Health. With respect 
to the National Nuclear Security Administration, the Secretary may 
exercise any authority under this section only through the 
Administrator for Nuclear Security, consistent with the delegation 
authority of the Secretary under section 202(c)(3) of the Department of 
Energy Organization Act (as added by section 3202 of the National 
Nuclear Security Administration Act (title XXXII of Public Law 106-65; 
113 Stat. 954; 42 U.S.C. 7132(c))).''.

  Amend the title so as to read:

    A bill to clarify the manner in which the Secretary of 
Energy may exercise certain authorities under the Price-
Anderson Act with respect to the National Nuclear Security 
Administration and other elements of the Department of Energy.

                         Purpose and Background

    The purpose of H.R. 4446 is to ensure that the Secretary of 
Energy may continue to exercise certain authorities under the 
Price-Anderson Amendments Act of 1988 (Public Law 100-408) 
through the Assistant Secretary of Energy for Environment, 
Safety and Health or the Administrator for Nuclear Security. 
H.R. 4446 would require the Secretary of Energy to exercise the 
authorities to assess penalties on Department of Energy (DOE) 
contractors who violate DOE nuclear safety rules and 
regulations at the National Security Laboratories of the 
Department of Energy in a manner consistent with the 
establishment of the National Nuclear Security Administration 
(NNSA) authorized by title 32 of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65). 
H.R. 4446 would authorize the Secretary to delegate the 
exercise of these authorities, as they pertain to the NNSA, to 
the Administrator for Nuclear Security only and prohibit 
delegation of these authorities, as they pertain to the NNSA, 
to the Assistant Secretary of Energy for Environment, Safety 
and Health.
    The Price-Anderson Amendments Act of 1988 amended the 
Atomic Energy Act of 1954 (Public Law 83-703) to establish a 
system of civil penalties for Department of Energy contractors 
that violate DOE nuclear safety rules and to authorize the 
Secretary of Energy to assess penalties on such violators. The 
Secretary of Energy has opted administratively to delegate the 
responsibility for assessing these penalties to the Assistant 
Secretary of Energy for Environment, Safety, and Health.
    The committee is concerned that codification of this 
administrative delegation would be inconsistent with Public Law 
106-65, which specifically limits the authority of the 
Secretary of Energy to delegate such authority with respect to 
the NNSA. Specifically, Public Law 106-65 provides that NNSA 
contractors shall not be subject to the authority, direction, 
or control of any DOE officer, employee, or agent other than 
the Secretary, the NNSA Administrator, or the Administrator's 
designee. H.R. 4446 would ensure that the Secretary's 
authorities regarding the assessment of penalties for 
violations of nuclear safety rules and regulations within the 
NNSA may only be delegated to the NNSA Administrator. H.R. 4446 
would, therefore, be consistent with the establishment of the 
NNSA as a semi-autonomous administration within the Department 
of Energy while ensuring that the Secretary and NNSA 
Administrator may use Price-Anderson penalties to enforce 
contractor compliance with all applicable safety regulations 
and rules.
    The committee does not intend H.R. 4446 to create or 
exacerbate conflict between the stockpile stewardship and 
nuclear safety missions of the Administrator. The committee 
notes that the Secretary retains the option to exercise the 
authority to impose civil penalties on NNSA contractors, 
without delegation, or that he may direct the Administrator to 
impose such penalties as the Secretary deems appropriate.
    The committee does not believe H.R. 4446 would promote 
inconsistent enforcement of safety rules, regulations and 
orders across DOE. The committee notes that Public Law 106-65 
establishes a clear framework for managing such concerns. The 
Secretary is authorized to direct DOE officials, who are not 
part of the NNSA, to review NNSA activities. These officials 
may recommend that the Secretary take actions regarding the 
administration of NNSA activities, including their consistency 
with similar DOE activities. The committee notes that reviews 
of NNSA contractor compliance with DOE nuclear safety rules, 
regulations and orders could, if the Secretary so ordered, be 
conducted by the Assistant Secretary for Environment, Safety, 
and Health. H.R. 4446 would not disturb the authority of the 
Secretary to direct the Administrator to provide full and open 
access to NNSA sites and to take steps needed to ensure that 
NNSA officials and contractors cooperate fully with DOE 
investigators.

                          Legislative History

    H.R. 4446 was introduced on May 15, 2000. The bill was 
reported June 23, 2000 by the Committee on Commerce (H. Rept. 
106-694, Part I). On June 23, 2000 the bill was referred to the 
Committee on Armed Services.
    On June 28, 2000 the Committee on Armed Services held a 
markup session to consider H.R. 4446. The committee adopted an 
amendment in the nature of a substitute by a voice vote. The 
amended version of the bill was reported favorably by a voice 
vote.

                      Section-by-Section Analysis

    The following is a section-by-section analysis of the 
amendment in the nature of a substitute adopted by the 
committee.

Section 1--Exercise of Certain Price-Anderson Act Authorities Through 
        the Assistant Secretary of Energy for Environment, Safety, and 
        Health or the Administrator for Nuclear Security

    This section would amend section 2282a of title 42, United 
States Code, to authorize the Secretary of Energy to exercise 
any authority under that provision of law with regard to any 
element of the Department of Energy, other than the National 
Nuclear Security Administration, through the Assistant 
Secretary of Energy for Environment, Safety, and Health. This 
section would also authorize the Secretary to exercise any 
authority under that provision of law with regard to the 
National Nuclear Security Administration only through the 
Administrator for Nuclear Security.

                           Committee Position

    On June 28, 2000, the Committee on Armed Services, a quorum 
being present, approved H.R. 4446 as amended, by a voice vote.

                              Fiscal Data

    Pursuant to clause 3(d)(2)(A) of rule XIII of the Rules of 
the House of Representatives, the committee attempted to 
ascertain annual outlays resulting from the bill during fiscal 
year 2001 and the four following fiscal years. The results of 
such effortsare reflected in the cost estimate prepared by the 
Director of the Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974, which is included in this report 
pursuant to clause 3(c)(3) of rule XIII of the Rules of the House.

                  Congressional Budget Office Estimate

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, the cost estimate prepared by 
the Congressional Budget Office and submitted pursuant to 
section 402(a) of the Congressional Budget Act of 1974 is as 
follows:

                                                      July 6, 2000.
Hon. Floyd Spence,
Chairman, Committee on Armed Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4446, a bill to 
ensure that the Secretary of Energy may continue to exercise 
certain authorities under the Price-Anderson Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Raymond J. 
Hall and Lisa Cash Driskill.
            Sincerely,
                                          Dan L. Crippen, Director.

H.R. 4446--A bill to ensure that the Secretary of Energy may continue 
        to exercise certain authorities under the Price-Anderson Act

    H.R. 4446 would define and clarify the lines of authority 
that the Secretary of Energy has to enforce penalties for 
nuclear safety violations under the Price-Anderson Act. (The 
Price-Anderson Act provides a framework for resolving liability 
issues in the event of an accident involving nuclear 
materials.) With respect to the National Nuclear Security 
Administration, the bill would require the Secretary to 
exercise authority only through the Administrator for Nuclear 
Security consistent with delegation authority under current 
law. For the rest of the Department of Energy, the bill would 
clarify the Secretary's authority to enforce the Price-Anderson 
Act through the Assistant Secretary for Environment, Safety, 
and Health.
    CBO estimates that H.R. 4446 would have little or no effect 
on the federal budget because implementing it would not require 
significant changes in current practice. The bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act and would impose no costs on 
state, local, or tribal governments.
    On May 23, 2000, CBO transmitted a cost estimate for H.R. 
4446 as ordered reported by the House Committee on Commerce. 
These two versions of the legislation are very similar but call 
for different lines of authority. CBO estimates that the 
earlier version would have no budgetary effect because it would 
not change current practice. The version ordered reported by 
the House Committee on Armed Services would change current 
practice somewhat and thus could have a small impact on the 
budget.
    The CBO staff contacts for this estimate are Raymond J. 
Hall and Lisa Cash Driskill. This estimate was approved by 
Peter H. Fontaine, Deputy Assistant Director for Budget 
Analysis.

                        Committee Cost Estimate

    Pursuant to clause 3(d) of rule XIII of the Rules of the 
House of Representatives, the committee generally concurs with 
the estimate contained in the report of the Congressional 
Budget Office.

                           Oversight Findings

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives, this legislation results from 
hearings and other oversight activities conducted by the 
committee pursuant to clause 2(b)(1) of rule X.
    With respect to clause 3(c)(2) of rule XIII of the Rules of 
the House of Representatives and section 308(a)(1) of the 
Congressional Budget Act of 1974, this legislation does not 
include any new spending or credit authority, nor does it 
provide for any increase or decrease in tax revenues or 
expenditures. The fiscal features of this legislation are 
addressed in the estimate prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the committee has not received a 
report from the Committee on Government Reform and Oversight 
pertaining to the subject matter of H.R. 4446.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the committee finds the authority for 
this legislation in Article I, section 8 of the United States 
Constitution.

                     Statement of Federal Mandates

    Pursuant to section 423 of Public Law 104-4, this 
legislation contains no federal mandates with respect to state, 
local, and tribal governments, nor with respect to the private 
sector. Similarly, the bill provides no unfunded federal 
intergovernmental mandates.

                              Record Vote

    In accordance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the committee notes that no 
rollcall votes were taken with respect to H.R. 4446.
    The committee ordered H.R. 4446, as amended, reported to 
the House with a favorable recommendation by a voice vote, a 
quorum being present.

         Changes in Existing Law Made by the Bill, as Reported

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

             SECTION 234A OF THE ATOMIC ENERGY ACT OF 1954

  Sec. 234A. Civil Monetary Penalties for Violations of 
Department of Energy Safety Regulations.--a. * * *

           *       *       *       *       *       *       *

  e. With respect to any element of the Department of Energy 
other than the National Nuclear Security Administration, the 
Secretary may exercise any authority under this section through 
the Assistant Secretary of Energy for Environment, Safety, and 
Health. With respect to the National Nuclear Security 
Administration, the Secretary may exercise any authority under 
this section only through the Administrator for Nuclear 
Security, consistent with the delegation authority of the 
Secretary under section 202(c)(3) of the Department of Energy 
Organization Act (as added by section 3202 of the National 
Nuclear Security Administration Act (title XXXII of Public Law 
106-65; 113 Stat. 954; 42 U.S.C. 7132(c))).

                                
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