SUBCHAPTER III—RIGHTS, PRIVILEGES, AND ASSETS OF CORPORATION

§2297c. 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 Court of Federal Claims, 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 October 24, 1992, 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.

(Aug. 1, 1946, ch. 724, title II, §1401, as added Oct. 24, 1992, Pub. L. 102–486, title IX, §901, 106 Stat. 2934; amended Oct. 29, 1992, Pub. L. 102–572, title IX, §902(b)(1), 106 Stat. 4516.)

Amendments

1992—Subsec. (b)(2)(A). Pub. L. 102–572 substituted "United States Court of Federal Claims" for "United States Claims Court".

Effective Date of 1992 Amendment

Amendment by Pub. L. 102–572 effective Oct. 29, 1992, see section 911 of Pub. L. 102–572, set out as a note under section 171 of Title 28, Judiciary and Judicial Procedure.

Section Referred to in Other Sections

This section is referred to in section 2297c–6 of this title.

§2297c–1. Pricing

(a) Services provided to commercial customers

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

(b) Services provided to DOE

The Corporation shall charge prices to the Department for uranium enrichment services provided under section 2297b–2(9) of this title 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.

(Aug. 1, 1946, ch. 724, title II, §1402, as added Oct. 24, 1992, Pub. L. 102–486, title IX, §901, 106 Stat. 2934.)

§2297c–2. 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) of this section, 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) of this section).

(c) Exclusion of facilities for production of highly enriched uranium

Subsection (a) of this section 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) of this section, 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) of this section 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 2210(d) of this title.

(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 4332 of this title.

(Aug. 1, 1946, ch. 724, title II, §1403, as added Oct. 24, 1992, Pub. L. 102–486, title IX, §901, 106 Stat. 2935.)

Section Referred to in Other Sections

This section is referred to in section 2201 of this title.

§2297c–3. Capital structure of Corporation

(a) Capital stock

(1) Issuance to Secretary of the Treasury

The Corporation shall issue capital stock representing an equity investment equal to the greater of—

(A) $3,000,000,000; or

(B) the book value of assets transferred to the Corporation, as reported in the Uranium Enrichment Annual Report for fiscal year 1991, modified to reflect continued depreciation and other usual changes that occur up to the transfer date.

The Secretary of the Treasury shall hold such stock for the United States, except that all rights and duties pertaining to management of the Corporation shall remain vested in the Board.

(2) Restriction on transfers of stock by United States

The capital stock of the Corporation shall not be sold, transferred, or conveyed by the United States, except to carry out the privatization of the Corporation under section 2297d–1 of this title.

(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 2297d–1 of this title, 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 2297b–15 of this title.

(c) Prohibition on additional Federal assistance

Except as otherwise specifically provided in this division, 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) of this section, and the dividends paid under subsection (b) of this section, 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.

(Aug. 1, 1946, ch. 724, title II, §1404, as added Oct. 24, 1992, Pub. L. 102–486, title IX, §901, 106 Stat. 2935.)

Section Referred to in Other Sections

This section is referred to in section 2297b–9 of this title.

§2297c–4. 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 2183(a) of this title and when use of the patent is within the Corporation's authority. An application shall constitute an application under section 2183(c) of this title subject to section 2183(c), (d), (e), (f), (g), and (h) of this title.

(Aug. 1, 1946, ch. 724, title II, §1405, as added Oct. 24, 1992, Pub. L. 102–486, title IX, §901, 106 Stat. 2936.)

§2297c–5. Liabilities

(a) Liabilities based on operations before transition

Except as otherwise provided in this division, all liabilities attributable to operation of the uranium enrichment enterprise before the transition date shall remain direct liabilities of the Department.

(b) Judgments based on operations before transition

Any judgment entered against the Corporation imposing liability arising out of the operation of the uranium enrichment enterprise before the transition date shall be considered a judgment against and shall be payable solely by the Department.

(c) Representation

With regard to any claim seeking to impose liability under subsection (a) or (b) of this section, 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.

(Aug. 1, 1946, ch. 724, title II, §1406, as added Oct. 24, 1992, Pub. L. 102–486, title IX, §901, 106 Stat. 2936.)

§2297c–6. 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 2297c(b) of this title.

(Aug. 1, 1946, ch. 724, title II, §1407, as added Oct. 24, 1992, Pub. L. 102–486, title IX, §901, 106 Stat. 2937.)

Section Referred to in Other Sections

This section is referred to in section 2296b–2 of this title.

§2297c–7. 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) of this section 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.

(Aug. 1, 1946, ch. 724, title II, §1408, as added Oct. 24, 1992, Pub. L. 102–486, title IX, §901, 106 Stat. 2937.)

Section Referred to in Other Sections

This section is referred to in section 2297b–2 of this title.