SUBCHAPTER V—AVLIS AND ALTERNATIVE TECHNOLOGIES FOR URANIUM ENRICHMENT

§2297e. 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 subchapter. 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 subchapter shall apply only to the extent the Corporation determines in its business judgment, on the basis of the assessment prepared under subsection (a) of this section, to proceed with the commercialization of AVLIS or alternative technologies for uranium enrichment.

(Aug. 1, 1946, ch. 724, title II, §1601, as added Oct. 24, 1992, Pub. L. 102–486, title IX, §901, 106 Stat. 2939.)

Section Referred to in Other Sections

This section is referred to in section 2297e–4 of this title.

§2297e–1. Transfer of rights and property to United States Enrichment Corporation

(a) Exclusive right to commercialize

The Corporation shall have the exclusive commercial right to deploy and use any AVLIS patents, processes, and technical information owned or controlled by the Government, upon completion of a royalty agreement with the Department.

(b) Transfer of related property to Corporation

(1) In general

To the extent requested by the Corporation, the President shall transfer without charge to the Corporation all of the Department's right, title, or interest in and to property owned by the Department, or by the United States but under control or custody of the Department, that is directly related to and materially useful in the performance of the Corporation's purposes regarding AVLIS and alternative technologies for uranium enrichment, including—

(A) facilities, equipment, and materials for research, development, and demonstration activities; and

(B) all other facilities, equipment, materials, processes, patents, technical information of any kind, contracts, agreements, and leases.

(2) Exception

Facilities, real estate, improvements, and equipment related to the gaseous diffusion, and gas centrifuge, uranium enrichment programs of the Department shall not transfer under paragraph (1)(B).

(3) Expiration of transfer authority

The President's authority to transfer property under this subsection shall expire upon privatization under section 2297d–1 of this title.

(c) Liability for patent and related claims

With respect to any right, title, or interest provided to the Corporation under subsection (a) or (b) of this section, the Corporation shall have sole liability for any payments made or awards under section 2187(b)(3) of this title, or any settlements or judgments involving claims for alleged patent infringement. Any royalty agreement under subsection (a) of this section shall provide for a reduction of royalty payments to the Department to offset any payments, awards, settlements, or judgments under this subsection.

(Aug. 1, 1946, ch. 724, title II, §1602, as added Oct. 24, 1992, Pub. L. 102–486, title IX, §901, 106 Stat. 2939.)

Section Referred to in Other Sections

This section is referred to in section 2297e–3 of this title.

§2297e–2. 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.

(Aug. 1, 1946, ch. 724, title II, §1603, as added Oct. 24, 1992, Pub. L. 102–486, title IX, §901, 106 Stat. 2940.)

Section Referred to in Other Sections

This section is referred to in section 2297e–4 of this title.

§2297e–3. 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 subchapter, the Corporation may provide for the establishment of a private for-profit corporation, which shall have as its initial purpose the construction of a uranium enrichment facility using AVLIS technology or alternative technologies for uranium enrichment.

(2) Process of organization

For purposes of the establishment of the private corporation under paragraph (1), the Corporation shall appoint not less than 3 persons to be incorporators. The incorporators so appointed shall each sign the articles of incorporation and shall serve as the initial board of directors until the members of the 1st regular board of directors shall have been appointed and elected. Such incorporators shall take whatever actions are necessary or appropriate to establish the private corporation, including the filing of articles of incorporation in such jurisdiction as the incorporators determine to be appropriate. The incorporators shall also develop a plan for the issuance by the private corporation of voting common stock to the public, which plan shall be subject to the approval of the Secretary of the Treasury.

(b) Legal status of private corporation

(1) Not Federal agency

The private corporation established under subsection (a) of this section 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) of this section 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 Court of Federal Claims jurisdiction

No action under section 1491 of title 28 shall be allowable against the United States based on the actions of the private corporation established under subsection (a) of this section.

(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) of this section 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) of this section the rights, titles, and interests provided to the Corporation under section 2297e–1 of this title. 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 2297e–1 of this title.

(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) of this section 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) of this section, on a reimbursable basis, such additional personnel, services, and equipment as the 2 corporations may determine to be appropriate.

(Aug. 1, 1946, ch. 724, title II, §1604, as added Oct. 24, 1992, Pub. L. 102–486, title IX, §901, 106 Stat. 2940; amended Oct. 29, 1992, Pub. L. 102–572, title IX, §902(b)(2), 106 Stat. 4516.)

Amendments

1992—Subsec. (b)(3). Pub. L. 102–572 substituted "Court of Federal Claims" for "Claims Court" in heading.

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 2297e–4 of this title.

§2297e–4. 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 2297e of this title;

(2) expenses of predeployment activities under section 2297e–2 of this title; and

(3) grants to the private corporation under section 2297e–3 of this title.

(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) of this section).

(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 2297e(a)(3) of this title, the Corporation shall submit to the Congress a report on the capital requirements for commercialization of AVLIS.

(Aug. 1, 1946, ch. 724, title II, §1605, as added Oct. 24, 1992, Pub. L. 102–486, title IX, §901, 106 Stat. 2942.)

§2297e–5. 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.

(Aug. 1, 1946, ch. 724, title II, §1606, as added Oct. 24, 1992, Pub. L. 102–486, title IX, §901, 106 Stat. 2942.)

§2297e–6. Site selection

This subchapter 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.

(Aug. 1, 1946, ch. 724, title II, §1607, as added Oct. 24, 1992, Pub. L. 102–486, title IX, §901, 106 Stat. 2942.)

§2297e–7. Exclusion from Price-Anderson coverage

Section 2210 of this title shall not apply to any license under section 2073, 2093, or 2133 of this title for a uranium enrichment facility constructed after October 24, 1992.

(Aug. 1, 1946, ch. 724, title II, §1608, as added Oct. 24, 1992, Pub. L. 102–486, title IX, §901, 106 Stat. 2942.)