ESTABLISHMENT OF THE UNITED STATES ENRICHMENT CORPORATION.

SEC. 901. ESTABLISHMENT OF THE UNITED STATES ENRICHMENT CORPORATION. The Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) is amended by adding at the end the following new title: 106 STAT. 2924 “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 Comprehensive 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 isotopic content into 2 components, 1 having a higher percentage of a fissile isotope and 1 having a lower percentage. “SEC. 1202. PURPOSES. “The Corporation is created for the following purposes: “(1) To operate as a business enterprise on a profitable and efficient basis. “(2) To maximize the long-term value of the Corporation to the Treasury of the United States. 106 STAT. 2925 “(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 incor-106 STAT. 2926porated under the District of Columbia Business Corporation Act; “(2) shall have the priority of the United States with respect to the payment of debts out of bankrupt, insolvent, and decedents’ estates; “(3) may obtain from the Administrator of General Services the services the Administrator is authorized to provide agencies of the United States, on the same basis as those services are provided to other agencies of the United States; “(4) shall enrich uranium, provide for uranium to be enriched by others, or acquire enriched uranium (including low-enriched uranium derived from highly enriched uranium provided under section 1408); “(5) may conduct, or provide for conducting, those research and development activities related to uranium enrichment and related processes and activities the Corporation considers necessary or advisable to maintain the Corporation as a commercial enterprise operating on a profitable and efficient basis; “(6) may enter into transactions regarding uranium, enriched uranium, or depleted uranium with— “(A) persons licensed under section 53, 63, 103, or 104 in accordance with the licenses held by those persons; “(B) persons in accordance with, and within the period of, an agreement for cooperation arranged under section 123; or “(C) persons otherwise authorized by law to enter into such transactions; “(7) may enter into contracts with persons licensed under section 53, 63, 103, or 104, for as long as the Corporation considers necessary or desirable, to provide uranium or uranium enrichment and related services; “(8) may enter into contracts to provide uranium or uranium enrichment and related services in accordance with, and within the period of, an agreement for cooperation arranged under section 123 or as otherwise authorized by law; and “(9) shall sell to the Department as provided in this title, without regard to section 57 e., the amounts of uranium enrichment and related services that the Department determines from time to time are required for it to— “(A) carry out Presidential directions and authorizations under section 91; and “(B) conduct other Department programs. “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 106 STAT. 2927election of a new Board of Directors under section 1704, whichever comes first. “(2) Initial members.— Of the members first appointed to the Board— “(A) 1 shall be appointed for a 1–year term; “(B) 1 shall be appointed for a 2–year term; “(C) 1 shall be appointed for a 3–year term; and “(D) 1 shall be appointed for a 4–year term. “(3) Reappointment.— Members of the Board may be reappointed by the President, by and with the advice and consent of the Senate. “(e) Vacancies.— Upon the occurrence of a vacancy on the Board, the President by and with the advice and consent of the Senate shall appoint an individual to fill such vacancy for the remainder of the applicable term. “(f) Meetings and Quorum.— The Board shall meet at any time pursuant to the call of the Chairman and as provided by the bylaws of the Corporation, but not less than quarterly. Three voting members of the Board shall constitute a quorum. A majority of the Board shall adopt and from time to time may amend bylaws for the operation of the Board. “(g) Powers.— The Board shall be responsible for general management of the Corporation and shall have the same authority, privileges, and responsibilities as the board of directors of a private corporation incorporated under the District of Columbia Business Corporation Act. “(h) Compensation.— Members of the Board shall serve on a part-time basis and shall receive per diem, when engaged in the actual performance of Corporation duties, plus reimbursement for travel, subsistence, and other necessary expenses incurred in the performance of their duties. “(i) Membership of Secretary of Treasury.— The President may appoint the Secretary of the Treasury or his designee to serve as a member of the Board or as a nonvoting, ex officio member of the Board. “(j) Conflict of Interest Requirements.— No director, officer, or other management level employee of the Corporation may have a financial interest in any customer, contractor, or competitor of the Corporation or in any business that may be adversely affected by the success of the Corporation. “SEC. 1305. EMPLOYEES OF THE CORPORATION. “(a) Appointment.— The Board shall appoint such officers and employees as are necessary for the transaction of its business. “(b) Compensation, Duties, and Removal.— The Board shall, without regard to section 5301 of title 5, United States Code, fix the compensation of all officers and employees of the Corporation, define their duties, and provide a system of organization to fix responsibility and promote efficiency. Any officer or employee of the Corporation may be removed in the discretion of the Board. “(c) Applicable Criteria.— The Board shall ensure that the personnel function and organization is consistent with the principles of section 2301(b) of title 5, United States Code, relating to merit system principles. Officers and employees shall be appointed, promoted, and assigned on the basis of merit and fitness, and other personnel actions shall be consistent with the principles of fairness and due process but without regard to those provisions of title 106 STAT. 29285 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 106 STAT. 2929auditing 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. 106 STAT. 2930 “(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. 106 STAT. 2931 “(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 the available services, equipment, personnel, and facilities of agen-106 STAT. 2932cies 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 an individual, trust, firm, joint stock company, corporation, partnership, association, State, municipality, or political subdivision of a State. “(c) OSHA Requirements.— Notwithstanding sections 3(5), 4(b)(1), and 19 of the Occupational Safety and Health Act of 1970 (29 U.S.C. 652(5), 653(b)(1), and 668)), the Corporation shall be subject to, and comply with, such Act and all regulations and standards promulgated thereunder in the same manner, and to the same extent, as an employer is subject to such Act. For the purposes of enforcing such Act (including any injunctive relief, administrative order, or civil, administrative, or criminal penalty or fine) against the Corporation, the United States expressly waives any immunity otherwise applicable to the Corporation. “(d) Labor Standards.— The Act of March 3, 1931 (known as the Davis-Bacon Act) (40 U.S.C. 276a et seq.) and the Service Contract Act of 1965 (41 U.S.C. 351 et sea.) 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. 106 STAT. 2933 “(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 106 STAT. 2934this 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. 106 STAT. 2935 “(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 the treasury.— The Corporation shall issue capital stock representing an equity investment equal to the greater of— “(A) $3,000,000,000; or “(B) the book value of assets transferred to the Corporation, as reported in the Uranium Enrichment Annual 106 STAT. 2936Report for fiscal year 1991, modified to reflect continued depreciation and other usual changes that occur up to the transfer date. The Secretary of the Treasury shall hold such stock for the United States, except that all rights and duties pertaining to management of the Corporation shall remain vested in the Board. “(2) Restriction on transfers of stock by united states.— The capital stock of the Corporation shall not be sold, transferred, or conveyed by the United States, except to carry out the privatization of the Corporation under section 1502. “(3) Annual assessment.— The Secretary of the Treasury shall annually assess the value of the stock held by the Secretary under paragraph (1) and submit to the Congress a report setting forth such value. The annual assessment of the Secretary shall be subject to review by an independent auditor. “(b) Payment of Dividends.— The Corporation shall pay into miscellaneous receipts of the Treasury of the United States or such other fund as is provided by law, dividends on the capital stock, out of earnings of the Corporation, as a return on the investment represented by such stock. Until privatization occurs under section 1502, the Corporation shall pay as dividends to the Treasury of the United States all net revenues remaining at the end of each fiscal year not required for operating expenses or for deposit into the Working Capital Account established in section 1316. “(c) Prohibition on Additional Federal Assistance.— Except as otherwise specifically provided in this title, the Corporation shall receive no appropriations, loans, or other financial assistance from the Federal Government. “(d) Sole Recovery of Unrecovered Costs.— Receipt by the United States of the proceeds from the sale of stock issued by the Corporation under subsection (a)(1), and the dividends paid under subsection (b), shall constitute the sole recovery by the United States of previously unrecovered costs (including depreciation and imputed interest on original plant investments in the Department’s gaseous diffusion plants) that have been incurred by the United States for uranium enrichment activities prior to the transition date. “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 106 STAT. 2937before 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 106 STAT. 2938merger 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. 106 STAT. 2939 “CHAPTER 26— AVLIS AND ALTERNATIVE TECHNOLOGIES FOR URANIUM ENRICHMENT “SEC. l601. ASSESSMENT BY UNITED STATES ENRICHMENT CORPORATION. “(a) In General.— The Corporation shall prepare an assessment of the economic viability of proceeding with the commercialization of AVLIS and alternative technologies for uranium enrichment in accordance with this chapter. The assessment shall include— “(1) an evaluation of market conditions together with a marketing strategy; “(2) an analysis of the economic viability of competing enrichment technologies; “(3) an identification of predeployment and capital requirements for the commercialization of AVLIS and alternative technologies for uranium enrichment; “(4) an estimate of potential earnings from the licensing of AVLIS and alternative technologies for uranium enrichment to a private government sponsored corporation; “(5) an analysis of outstanding and potential patent and related claims with respect to AVLIS and alternative technologies for uranium enrichment, and a plan for resolving such claims; and “(6) a contingency plan for providing enriched uranium and related services in the event that deployment of AVLIS and alternative technologies for uranium enrichment is determined not to be economically viable. “(b) Determination by Corporation To Proceed With Commercialization of AVLIS or Alternative Technologies for Uranium Enrichment.— The succeeding sections of this chapter shall apply only to the extent the Corporation determines in its business judgment, on the basis of the assessment prepared under subsection (a), to proceed with the commercialization of AVLIS or alternative technologies for uranium enrichment “SEC. 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. 106 STAT. 2940 “(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 106 STAT. 2941filing 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 jurisdicition.— 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. 106 STAT. 2942 “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.”.