[House Report 106-696]
[From the U.S. Government Publishing Office]





106th Congress         HOUSE OF REPRESENTATIVES    Rept. 106-696
 2d Session                                             Part 2
                                                       _______________________________________________________________________

                                     



 
     NATIONAL NUCLEAR SECURITY ADMINISTRATION SECURITY OVERSIGHT 
                        IMPROVEMENT ACT OF 2000

                               ----------                              

                              R E P O R T

                                 OF THE

                      COMMITTEE ON ARMED SERVICES
                        HOUSE OF REPRESENTATIVES

                                   ON

                               H.R. 3906

      [Including cost estimate of the Congressional Budget Office]

                                     


                                     

 July 12, 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...........................................     3
Legislative History..............................................     4
Section-by-Section Analysis......................................     5
  Section 1--Short Title.........................................     5
  Section 2--Office of Independent Security Oversight............     5
Committee Position...............................................     5
Fiscal Data......................................................     5
  Congressional Budget Office Estimate...........................     6
  Congressional Budget Office Cost Estimate......................     6
  Committee Cost Estimate........................................     7
Oversight Findings...............................................     8
Constitutional Authority Statement...............................     8
Statement of Federal Mandates....................................     8
Record Vote......................................................     8
Changes in Existing Law Made by the Bill, as Reported............     8
106th Congress                                            Rept. 106-696
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 2

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




NATIONAL NUCLEAR SECURITY ADMINISTRATION SECURITY OVERSIGHT IMPROVEMENT 
                              ACT OF 2000

                                _______
                                

 July 12, 2000.--Committed to the Committee of the Whole House on the 
              State of the Union and 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. 3906]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Armed Services, to whom was referred the 
bill (H.R. 3906) to ensure that the Department of Energy has 
appropriate mechanisms to independently assess the 
effectiveness of its policy and site performance in the areas 
of safeguards and security and cyber security, 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. SHORT TITLE.

  This Act may be cited as the ``National Nuclear Security 
Administration Security Oversight Improvement Act of 2000''.

SEC. 2. OFFICE OF INDEPENDENT SECURITY OVERSIGHT.

  (a) Office Required.--Subtitle B of the National Nuclear Security 
Administration Act (title XXXII of Public Law 106-65; 113 Stat. 953; 50 
U.S.C. 2401 et seq.) is amended by inserting at the end the following 
new section:

``SEC. 3237. OFFICE OF INDEPENDENT SECURITY OVERSIGHT.

  ``(a) Office Required.--The Administrator shall maintain an Office of 
Independent Security Oversight, which shall be headed by a Director 
appointed by the Administrator without regard to political affiliation 
and solely on the basis of integrity and demonstrated ability in the 
oversight and evaluation of security for nuclear and classified 
programs. The Director shall report directly to and be under the 
general supervision of the Administrator, but the Director shall not be 
subject to supervision by any other office or officer of the 
Administration or of the Department of Energy. Neither the Secretary of 
Energy nor the Administrator shall prevent, prohibit, or delay the 
Director from initiating, carrying out, or completing any inspection, 
evaluation, or report undertaken pursuant to this section or from 
submitting to the Congress any such report. Such Office shall be 
responsible for carrying out the missions and functions described in 
subsections (c) and (d), but the Office shall have no authority to 
establish or require the implementation of any change to the policies, 
programs, or practices of the Administration.
  ``(b) Experts and Consultants.--In addition to employees of the 
Administration, the Director is authorized to utilize such experts and 
consultants as the Director deems appropriate. For such purposes, the 
Director may procure temporary and intermittent services under section 
3109(b) of title 5, United States Code. Upon request of the Director, 
the head of any Federal agency is authorized to detail, on a 
reimbursable basis, any of the personnel of such agency to the Director 
to assist the Director in carrying out functions under this section.
  ``(c) Mission.--The Office of Independent Security Oversight shall be 
responsible for the independent evaluation of the effectiveness of 
safeguards and security (including computer security) policies, 
programs, and practices of the Administration. The Office shall 
identify security weaknesses, make recommendations to the Administrator 
for improvement, and review the effectiveness and timeliness of 
corrective actions taken by the Administration.
  ``(d) Functions.--The Office of Independent Security Oversight shall 
perform the following functions:
          ``(1) Conduct regular evaluations of safeguards and security 
        programs at Administration sites that have significant amounts 
        of special nuclear material, classified information, or other 
        security interests. The scope of the evaluations shall include 
        all aspects of safeguards and security, including physical 
        protection of special nuclear material, accountability of 
        special nuclear material, protection of classified and 
        sensitive information, classified and unclassified computer 
        security, personnel security, and interactions with foreign 
        nationals.
          ``(2) Issue reports to the Administrator that clearly 
        identify specific findings relating to security weaknesses, and 
        make recommendations for improvement.
          ``(3) Perform timely followup reviews to assess the 
        effectiveness of any corrective actions implemented by the 
        Administration.
          ``(4) Evaluate and assess Administration policies related to 
        safeguards and security.
          ``(5) Develop recommendations and opportunities for improving 
        safeguards and security policies, programs, and practices for 
        submittal to the Administrator.
          ``(6) Any other function the Administrator considers 
        appropriate and consistent with the mission described in 
        subsection (c).
  ``(e) Timing of Regular Evaluations.--
          ``(1) General rule.--Except as provided in paragraph (2), 
        evaluations conducted under subsection (d)(1) shall occur at 
        least once every two years.
          ``(2) Computer security evaluations.--Evaluations conducted 
        under subsection (d)(1) with respect to classified and 
        unclassified computer security shall occur at least once every 
        18 months.
  ``(f) Access to Information.--In carrying out this section, the 
Director shall have access to all records and personnel of the 
Administration concerning its safeguards and security programs, 
including classified and unclassified computer security programs.
  ``(g) Report by Office.--The Office of Independent Security Oversight 
shall, before February 15 of each year, transmit to the Administrator 
and the Secretary an unclassified report, with a classified appendix if 
requested or necessary, summarizing the activities of the Office during 
the immediately preceding calendar year. Such report shall include--
          ``(1) a summary of each significant report made to the 
        Administrator pursuant to this section during the reporting 
        period, including a description of key security findings 
        contained in those reports;
          ``(2) the adequacy of corrective actions, if any, taken by 
        the Administration to address significant problems and 
        deficiencies;
          ``(3) an identification of each significant problem or 
        deficiency described in previous annual reports on which 
        corrective action has not been effectively completed; and
          ``(4) a description of any significant security policy 
        decision with which the Director is in disagreement, along with 
        an explanation of the reasons for disagreement.
  ``(h) Report by Administrator.--The Administrator shall, before March 
15 of each year, transmit to the appropriate committees of Congress, 
without alteration, the Office's annual report submitted under 
subsection (g), along with an unclassified report, with a classified 
appendix if requested or necessary, summarizing the Administrator's 
response thereto. Such report from the Administrator shall include--
          ``(1) a description of the Administrator's response to each 
        significant report and security finding made to the 
        Administrator pursuant to this section during the reporting 
        period;
          ``(2) an explanation of the reasons for any failure on the 
        part of the Administration to remedy security findings 
        identified by the Office in the current annual report and 
        previous annual reports; and
          ``(3) to the extent relevant, an explanation of how the 
        President's budget submissions will impact the ability of the 
        Administration to remedy unresolved security findings 
        identified by the Office in its annual reports.
  ``(i) Public Availability.--Within 60 days after the transmission of 
the annual reports to the Congress under subsection (h), the 
Administrator shall make copies of the unclassified portions of such 
reports available to the public.
  ``(j) Special Reports.--The Director of the Office of Independent 
Security Oversight shall report immediately to the Administrator 
whenever the Director becomes aware of deficiencies relating to the 
security programs, practices, or operations of the Administration that 
require an immediate response. The Administrator shall, within seven 
calendar days after receiving a report under this subsection, notify 
the appropriate committees of Congress in writing and explain the 
corrective actions taken to address such deficiencies.
  ``(k) Congressional Testimony and Briefings.--The Director of the 
Office of Independent Security Oversight, whenever called to testify 
before a committee of Congress or to brief any Member of Congress or 
congressional staff, shall provide the Administrator with advance 
notice of the subject matter of that testimony or briefing, but shall 
provide the requested information to the Congress without any further 
review, clearance, or approval by any other official in the Executive 
Branch.''.
  (b) Clerical Amendment.--The table of contents at the beginning of 
such Act is amended by inserting after the item relating to section 
3236 the following new item:

``Sec. 3237. Office of Independent Security Oversight.''.

  Amend the title so as to read:

    A bill to ensure that the National Nuclear Security Administration 
has appropriate mechanisms to independently assess the effectiveness of 
its policy and site performance in the areas of safeguards and security 
and cyber security.

                         Purpose and Background

    The purpose of H.R. 3906 is to ensure that the National 
Nuclear Security Administration (NNSA) of the Department of 
Energy (DOE) has appropriate mechanisms to assess independently 
the effectiveness of its policy and site performance in the 
areas of safeguards and security and cyber security by 
establishing an Office of Independent Security Oversight within 
the National Nuclear Security Administration and requiring 
annual reporting to the Congress by the Administrator of the 
National Nuclear Security Administration.
    The National Nuclear Security Administration was 
established as a separately organized agency within the 
Department of Energy by title 32 of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65). The 
NNSA is responsible for nuclear weapons development, naval 
nuclear propulsion, defense nuclear nonproliferation, and 
fissile material disposition. Public Law 106-65 also required 
the establishment of security, counterintelligence, and 
intelligence offices for the NNSA as well as prescribed 
personnel, budgeting, and other management practices for the 
NNSA.
    Prior to the establishment of the NNSA on March 1, 2000, 
the routine oversight of security policy and practices at the 
national security laboratories and facilities of the Department 
of Energy had been assigned to various DOE operations offices 
with assistance, as required, by DOE Headquarters.
    In addition, for a number of years, the Department of 
Energy has maintained, at the management discretion of the 
Secretary of Energy, an independent oversight organization, 
currently named the Office of Independent Oversight and 
Performance Assurance. At various times, this independent 
oversight function has reported to different officials of the 
Department of Energy and currently reports directly to the 
Secretary of Energy. The committee notes that the preponderance 
of the Office's recent oversight work has concerned facilities 
of the National Nuclear Security Administration. In addition, 
the Secretary recently created an Office of Security and 
Emergency Operations, which has primary security responsibility 
for DOE more broadly.
    The committee notes that Public Law 106-65 provided the 
Secretary with broad oversight authority over the activities of 
the NNSA and also provided the Administrator with authority to 
establish policy and procedures specific to the NNSA, including 
the establishment of security policy and procedures. Public Law 
106-65 also established the Office of Defense Nuclear Security, 
which is charged with the responsibility to execute both the 
broad security policies and procedures established by the 
Secretary and those security policies and procedures 
established by the Administrator for the NNSA. The committee 
further notes that the Director of the Office reports to 
Administrator. In view of the establishment of the National 
Nuclear Security Administration as a separately organized 
agency, the committee strongly believes the effective 
management of the national security programs under the purview 
of the NNSA would be enhanced by independent evaluation of NNSA 
safeguards and security policies and procedures with 
significant and routine reporting on these matters to the 
Congress. The committee believes that such an independent 
evaluation function, properly structured, is inherently a 
function of the NNSA. Furthermore, this organizational 
framework would provide the Administrator with a valuable 
management tool to conduct oversight over NNSA programs and 
facilities without impinging on the oversight requirements of 
the Secretary of Energy for DOE facilities more broadly.
    Accordingly, H.R. 3906 would establish an Office of 
Independent Security Oversight within the National Nuclear 
Security Administration. The Director of the Office would be 
appointed by, and be under the general supervision of, the 
Administrator. The Office of Independent Security Oversight 
would be responsible for the independent evaluation of the 
effectiveness of safeguards and security policies and 
procedures of the NNSA. H.R. 3906 would also provide for the 
transmission of specified reports, developed by the Director, 
to Congress concerning the effectiveness of the safeguards and 
security policies and procedures of the NNSA.

                          Legislative History

    H.R. 3906 was introduced on March 14, 2000 and was referred 
to the Committee on Commerce and, in addition, to the Commitees 
on Armed Services and Science.
    H.R. 3906 was reported from the Committee on Commerce with 
an amendment on June 23, 2000 (H. Rept. 106-696, Part 1). The 
Committee on Science was discharged from further consideration 
of the bill on June 23, 2000.
    On June 23, 2000, the referral to the Committee on Armed 
Services was extended for a period ending not later than July 
12, 2000. On June 28, 2000, the Committee on Armed Services 
held a markup session to consider H.R. 3906. The committee 
adopted an amendment in the nature of a substitute by a voice 
vote. The amended version of the bill was ordered 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--Short title

    This section would cite the Act as the ``National Nuclear 
Security Administration Security Oversight Improvement Act of 
2000.''

Section 2--Office of Independent Security Oversight

    This section would amend subtitle B of the National Nuclear 
Security Administration Act (title XXXII of Public Law 106-65) 
to establish an Office of Independent Security Oversight within 
the National Nuclear Security Administration whose Director 
would be appointed by, and report to, the Administrator of the 
National Nuclear Security Administration. The Secretary of 
Energy and the Administrator of the NNSA would be prohibited 
from preventing or delaying the Director from initiating, 
carrying out, or completing any inspection or evaluation 
authorized by law.
    The Office would be responsible for the independent 
evaluation of the effectiveness of all aspects of safeguards 
and security policies and procedures of the NNSA governing the 
physical protection and accountability of special nuclear 
material, the protection of classified and sensitive 
information, classified and unclassified computer security, 
personnel security, and interactions with foreign nationals. 
and would make recommendations to the Administrator for 
improvement or corrective action to such policies and 
procedures. This section would require such evaluations to be 
conducted at certain specified intervals.
    This section would also establish annual and periodic 
reporting requirements to Congress concerning the activities of 
the Office.

                           Committee Position

    On June 28, 2000, the Committee on Armed Services, a quorum 
being present, approved H.R. 3906 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 efforts are 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:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, July 5, 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. 3906, the National 
Nuclear Security Administration Security Oversight Improvement 
Act of 2000.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Raymond J. 
Hall.
            Sincerely,
                                          Dan L. Crippen, Director.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

National Nuclear Security Administration Security Oversight Improvement 
        Act of 2000

    H.R. 3906 would direct the Administrator of the National 
Nuclear Security Administration to maintain an Office of 
Independent Security Oversight. CBO estimates that implementing 
the bill would cost about $20 million a year, subject to 
appropriation of the necessary funds. The office would be 
responsible for evaluating the effectiveness of security 
policies, programs, and practices (including computer security) 
throughout the administration. H.R. 3906 contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.
    In addition to other duties, the office would be charged 
with evaluating the security of programs that involve 
significant amounts of nuclear material or classified 
information at least once every two years, and evaluating 
classified and unclassified computer security at least once 
every 18 months. The bill would require the administrator to 
report the findings of these evaluations to the Congress every 
year.
    The bill would authorize an office very similar to one that 
was already established by the Secretary of Energy in May of 
1999, and which received an appropriation of about $20 million 
for fiscal year 2000. This office is carrying out the 
activities that are called by the legislation. Currently, the 
office is organized under the Assistant Secretary for 
Environment, Safety, and Health, but under this legislation the 
director of this office would report directly to the 
Administrator of the National Nuclear Security Administration 
and not be subject to supervision by any other office or 
officer of the administration or the Department of Energy 
(DOE).
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of H.R. 3906 is shown in the following table. 
The costs of this legislation fall within budget functions 050 
(defense) and 270 (energy).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        2000      2001      2002      2003      2004      2005
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending under current law:
    Budget authority \1\............................        20         0         0         0         0         0
    Estimated outlays...............................        13         6         1         0         0         0
Proposed changes:
    Estimated authorization level...................         0        20        21        21        22        22
    Estimated outlays...............................         0        13        20        21        22        22
Spending under H.R. 3906:
    Estimated authorization level \1\...............        20        20        21        21        22        22
    Estimated outlays...............................        13        19        21        21        22       22
----------------------------------------------------------------------------------------------------------------
\1\ The 2000 level is the amount appropriated for that year for DOE's existing Office of Independent Oversight
  and Performance Assurance.

    Basis of Estimate: CBO estimates that the continuation of 
the security functions now performed by DOE's Office of 
Independent Oversight and Performance Assurance would cost $98 
million over the 2001-2005 period, assuming annual adjustments 
for anticipated inflation. Without such adjustments for 
anticipated inflation, we estimate that continuing the work of 
this office would cost $93 million over the next five years. 
CBO anticipates that transferring these oversight 
responsibilities to a new office within the National Nuclear 
Security Administration would not impact costs significantly.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: H.R. 3906 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Previous CBO estimate: H.R. 3906 as ordered reported by the 
Committee on Armed Services is similar to the version ordered 
reported by the Committee on Commerce on May 17, 2000. This 
version of the bill would require that the Office of 
Independent Security Oversight be maintained by the National 
Nuclear Security Administration rather than the Assistant 
Secretary for Environment, Safety, and Health as would likely 
be the case under the earlier version. CBO estimates that the 
costs of the two bills would be the same.
    Estimate prepared by: Federal costs: Raymond J. Hall and 
Lisa Cash Driskill; impact on State, local, and tribal 
governments: Leo Lex; impact on the private sector: R. William 
Thomas.
    Estimate approved by: Robert A. Sunshine, 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. However, the committee notes that the 
Congressional Budget Office estimate fails to clarify 
adequately that the activities of the Office of Independent 
Security Oversight are ongoing activities that would continue 
without regardto the enactment of H.R. 3906. While the 
assertion that implementation of H.R. 3906 would require appropriations 
of $20.0 million per year is accurate, it is somewhat misleading since 
funds of a like amount are currently being spent annually for similar 
activities under the direction of the Assistant Secretary of Energy for 
Environment, Safety, and Health. A detailed reading of the basis of 
estimate portion of the Congressional Budget Office estimate makes 
clear that implementation of H.R. 3906 and the migration of the 
oversight activities to the National Nuclear Security Administration 
would not increase these costs.

                           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. 3906.

                   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. 3906.
    The committee ordered H.R. 3906, 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 (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

              NATIONAL NUCLEAR SECURITY ADMINISTRATION ACT


         TITLE XXXII--NATIONAL NUCLEAR SECURITY ADMINISTRATION

Sec. 3201. Short title.
     * * * * * * *

                Subtitle B--Matters Relating to Security

Sec. 3231. Protection of national security information.
     * * * * * * *
Sec. 3237. Office of Independent Security Oversight.

           *       *       *       *       *       *       *


Subtitle B--Matters Relating to Security

           *       *       *       *       *       *       *


SEC. 3237. OFFICE OF INDEPENDENT SECURITY OVERSIGHT.

  (a) Office Required.--The Administrator shall maintain an 
Office of Independent Security Oversight, which shall be headed 
by a Director appointed by the Administrator without regard to 
political affiliation and solely on the basis of integrity and 
demonstrated ability in the oversight and evaluation of 
security for nuclear and classified programs. The Director 
shall report directly to and be under the general supervision 
of the Administrator, but the Director shall not be subject to 
supervision by any other office or officer of the 
Administration or of the Department of Energy. Neither the 
Secretary of Energy nor the Administrator shall prevent, 
prohibit, or delay the Director from initiating, carrying out, 
or completing any inspection, evaluation, or report undertaken 
pursuant to this section or from submitting to the Congress any 
such report. Such Office shall be responsible for carrying out 
the missions and functions described in subsections (c) and 
(d), but the Office shall have no authority to establish or 
require the implementation of any change to the policies, 
programs, or practices of the Administration.
  (b) Experts and Consultants.--In addition to employees of the 
Administration, the Director is authorized to utilize such 
experts and consultants as the Director deems appropriate. For 
such purposes, the Director may procure temporary and 
intermittent services under section 3109(b) of title 5, United 
States Code. Upon request of the Director, the head of any 
Federal agency is authorized to detail, on a reimbursable 
basis, any of the personnel of such agencyto the Director to 
assist the Director in carrying out functions under this section.
  (c) Mission.--The Office of Independent Security Oversight 
shall be responsible for the independent evaluation of the 
effectiveness of safeguards and security (including computer 
security) policies, programs, and practices of the 
Administration. The Office shall identify security weaknesses, 
make recommendations to the Administrator for improvement, and 
review the effectiveness and timeliness of corrective actions 
taken by the Administration.
  (d) Functions.--The Office of Independent Security Oversight 
shall perform the following functions:
          (1) Conduct regular evaluations of safeguards and 
        security programs at Administration sites that have 
        significant amounts of special nuclear material, 
        classified information, or other security interests. 
        The scope of the evaluations shall include all aspects 
        of safeguards and security, including physical 
        protection of special nuclear material, accountability 
        of special nuclear material, protection of classified 
        and sensitive information, classified and unclassified 
        computer security, personnel security, and interactions 
        with foreign nationals.
          (2) Issue reports to the Administrator that clearly 
        identify specific findings relating to security 
        weaknesses, and make recommendations for improvement.
          (3) Perform timely followup reviews to assess the 
        effectiveness of any corrective actions implemented by 
        the Administration.
          (4) Evaluate and assess Administration policies 
        related to safeguards and security.
          (5) Develop recommendations and opportunities for 
        improving safeguards and security policies, programs, 
        and practices for submittal to the Administrator.
          (6) Any other function the Administrator considers 
        appropriate and consistent with the mission described 
        in subsection (c).
  (e) Timing of Regular Evaluations.--
          (1) General rule.--Except as provided in paragraph 
        (2), evaluations conducted under subsection (d)(1) 
        shall occur at least once every two years.
          (2) Computer security evaluations.--Evaluations 
        conducted under subsection (d)(1) with respect to 
        classified and unclassified computer security shall 
        occur at least once every 18 months.
  (f) Access to Information.--In carrying out this section, the 
Director shall have access to all records and personnel of the 
Administration concerning its safeguards and security programs, 
including classified and unclassified computer security 
programs.
  (g) Report by Office.--The Office of Independent Security 
Oversight shall, before February 15 of each year, transmit to 
the Administrator and the Secretary an unclassified report, 
with a classified appendix if requested or necessary, 
summarizing the activities of the Office during the immediately 
preceding calendar year. Such report shall include--
          (1) a summary of each significant report made to the 
        Administrator pursuant to this section during the 
        reporting period, including a description of key 
        security findings contained in those reports;
          (2) the adequacy of corrective actions, if any, taken 
        by the Administration to address significant problems 
        and deficiencies;
          (3) an identification of each significant problem or 
        deficiency described in previous annual reports on 
        which corrective action has not been effectively 
        completed; and
          (4) a description of any significant security policy 
        decision with which the Director is in disagreement, 
        along with an explanation of the reasons for 
        disagreement.
  (h) Report by Administrator.--The Administrator shall, before 
March 15 of each year, transmit to the appropriate committees 
of Congress, without alteration, the Office's annual report 
submitted under subsection (g), along with an unclassified 
report, with a classified appendix if requested or necessary, 
summarizing the Administrator's response thereto. Such report 
from the Administrator shall include--
          (1) a description of the Administrator's response to 
        each significant report and security finding made to 
        the Administrator pursuant to this section during the 
        reporting period;
          (2) an explanation of the reasons for any failure on 
        the part of the Administration to remedy security 
        findings identified by the Office in the current annual 
        report and previous annual reports; and
          (3) to the extent relevant, an explanation of how the 
        President's budget submissions will impact the ability 
        of the Administration to remedy unresolved security 
        findings identified by the Office in its annual 
        reports.
  (i) Public Availability.--Within 60 days after the 
transmission of the annual reports to the Congress under 
subsection (h), the Administrator shall make copies of the 
unclassified portions of such reports available to the public.
  (j) Special Reports.--The Director of the Office of 
Independent Security Oversight shall report immediately to the 
Administrator whenever the Director becomes aware of 
deficiencies relating to the security programs, practices, or 
operations of the Administration that require an immediate 
response. The Administrator shall, within seven calendar days 
after receiving a report under this subsection, notify the 
appropriate committees of Congress in writing and explain the 
corrective actions taken to address such deficiencies.
  (k) Congressional Testimony and Briefings.--The Director of 
the Office of Independent Security Oversight, whenever called 
to testify before a committee of Congress or to brief any 
Member of Congress or congressional staff, shall provide the 
Administrator with advance notice of the subject matter of that 
testimony or briefing, but shall provide the requested 
information to the Congress without any further review, 
clearance, or approval by any other official in the Executive 
Branch.

                                
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