To authorize private sector participation in designing, constructing, owning, and operating facilities to provide supplies, equipment, materials or services to support Department of Energy Waste Cleanup and modernization missions.

Authorizes the Secretary of Energy to enter into 30-year agreements with private contractors for the construction, ownership, and operation of specified waste cleanup and modernization facilities if the facilities: (1) are provided at the contractors' expense; (2) are near a Federal site under the Secretary's jurisdiction; and (3) support defense waste cleanup, research, or modernization efforts.

Prescribes agreement guidelines. Precludes the Secretary from entering into an agreement without prior submission to the Congress of a needs justification with respect to the engagement of a private contractor, and a demonstration that the proposed agreement is in the best economic interests of the United States.

Requires the Secretary to report to the Congress regarding the benefits of the agreements entered into, and recommendations for possible extension of the agreement authority.

 
HR 1636 IH
102d CONGRESS
1st Session
 H. R. 1636
To authorize private sector participation in designing, constructing, owning,
and operating facilities to provide supplies, equipment, materials or services
to support Department of Energy waste cleanup and modernization missions.
IN THE HOUSE OF REPRESENTATIVES
March 22, 1991
Mr. MORRISON (for himself, Mrs. LLOYD, Mr. SCHIFF, Mr. CHANDLER, Mr. SKEEN,
Mr. STALLINGS, and Mrs. VUCANOVICH) introduced the following bill; which
was referred to the Committee on Energy and Commerce
A BILL
To authorize private sector participation in designing, constructing, owning,
and operating facilities to provide supplies, equipment, materials or services
to support Department of Energy waste cleanup and modernization missions.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. PRIVATE SECTOR PARTICIPATION IN WASTE CLEANUP AND MODERNIZATION
ACTIVITIES.
  (a) CONGRESSIONAL FINDINGS- The Congress finds the following:
  (1) The management and cleanup of nuclear and hazardous waste and
  the modernization of Department of Energy facilities must be pursued
  expeditiously to protect the health and safety of the public and workers.
  (2) The waste cleanup and facility modernization will require substantial
  construction and operational activities and significant long-term funding.
  (3) Flexibility is needed in pursuing the cost-effective acquisition of
  supplies, equipment, materials or services which could include construction
  of facilities to support the Department of Energy cleanup and modernization
  missions.
  (4) Technology innovation must be emphasized to reduce costs, enhance safety,
  and accelerate cleanup and modernization of Department of Energy sites.
  (5) The waste cleanup and facility modernization effort will benefit from
  the active participation, based on fair competitive practices, of more
  private contractors.
  (6) The private sector, with proper controls and health and safety
  assurances, should be allowed to participate in supporting these Department
  of Energy cleanup and modernization missions.
  (b) AUTHORIZATION- (1) Subject to paragraph (2), the Secretary of Energy
  may enter into contracts with private contractors for--
  (A) the design, construction, ownership, and operation of facilities of
  the types described in paragraph (3); and
  (B) the acquisition of supplies, equipment, materials, and services related
  to design, construction, or operation of facilities of the types described
  in paragraph (3).
  (2)(A) The Secretary may not enter into any contract under paragraph (1)(A)
  with respect to any facility unless the facility is provided at the expense
  of the contractor.
  (B) The Secretary may not enter into any contract under paragraph (1)
  (A) or (B) with respect to any facility unless the facility--
  (i) is on or near a Federal site under the jurisdiction of the Department
  of Energy; and
  (ii) supports waste cleanup, research, management, or facility modernization
  efforts.
  (3) The types of facilities that may be designed, constructed, owned,
  or operated by private contractors under paragraph (1)(A), and for which
  supplies, equipment, materials and services may be provided under paragraph
  (1)(B), may include any of the following:
  (A) Waste treatment, storage, and disposal facilities.
  (B) Technical office facilities.
  (C) Energy production facilities.
  (D) Utility service facilities.
  (E) Effluent treatment facilities.
  (F) General storage facilities.
  (G) Fabrication and maintenance facilities.
  (H) Laboratory, research, or test facilities.
  (c) CONTRACTS- (1) The Secretary of Energy may enter into contracts
  pursuant to subsection (b) for a period of time not exceeding 30 years,
  with options for two 10-year extensions.
  (2) Under any contract entered into pursuant to subsection (b), the
  Secretary of Energy shall--
  (A) provide that, at the end of the contract period, the Department of
  Energy shall have the option to take title, extend the contract period
  pursuant to paragraph (1) of this subsection, or require the facility
  owner to decommission the facility (if on Federal land);
  (B) require that the private contractor comply with all relevant
  environmental, health, occupational, and safety statutes and regulations
  that would apply to the Department of Energy if the Department carried
  out the activity contemplated by the contract;
  (C) include, where applicable, an agreement of indemnification clause
  pursuant to section 170 d. of the Atomic Energy Act (42 U.S.C. 2210),
  section 119(c) of the Comprehensive Environmental Response, Compensation,
  and Liability Act (42 U.S.C. 9619(c)), or any other relevant Federal statute,
  regulation, or order;
  (D) require that the private contractor comply with existing labor agreements
  applicable to the Department of Energy site, including any site stabilization
  agreement in effect;
  (E) have the authority to allow private contractors, consistent with
  Federal law, to commercialize any technologies which are developed during
  the pendency and under the terms of the contracts;
  (F) include a clear statement of the applicable Department of Energy
  requirements, including any health, safety or environmental controls required
  to provide quality and service and to protect the public and the environment;
  (G) have the authority to terminate the contract and take title to any
  facility subject to the contract if the private contractor is engaging
  in unsafe or unsound practices, consistently violating any terms of the
  contract, or has become bankrupt; and
  (H) include such other items and conditions as the Secretary of Energy
  determines are necessary or desirable to protect the interests of the
  United States.
  (3) In awarding contracts pursuant to subsection (b), the Secretary of
  Energy shall, to the extent appropriate and practical, encourage--
  (A) competitive procurement methods prescribed for the acquisition of
  supplies, equipment, materials or supplies;
  (B) the development of new and innovative technologies; and
  (C) a diversity of contractors to provide supplies, equipment, materials
  or engineering, design and construction, and operations and maintenance
  services.
  (4) Under any contract entered into pursuant to subsection (b), the
  Secretary of Energy shall include a termination provision that authorizes
  the Department of Energy to pay for the unamortized balance of any
  special facilities acquired or constructed by the private contractor,
  if such acquisition or construction constitutes a significant portion
  of the investment by the private contractor under the contract. The
  termination provision may authorize the use, for the purpose of paying
  such unamortized balance and any other costs resulting from termination,
  of any Federal funds available at the time of termination or thereafter
  made available for operating expenses. For purposes of this paragraph,
  the term `special facilities' means any land or depreciable buildings,
  structures, utilities, machinery, equipment, materials, or services not
  made available to the private contractor by the Department of Energy.
  (5) The Secretary of Energy may lease Federal land on which new facilities
  can be constructed  pursuant to contracts entered into under subsection
  (b). Such leases may be for the expected useful life of the facility and
  shall include payments based on the best interests of the United States.
  (d) JUSTIFICATIONS AND ANALYSES- The Secretary of Energy may not enter
  into a contract under this section until--
  (1) the Secretary submits to Congress--
  (A) a justification of the need for supplies, equipment, materials or
  services for which the proposed contract is being entered into, and
  (B) an analysis (which includes a life-cycle costs analysis using
  equivalent costs of money, design, and construction efficiencies,
  rapidity of deployment, access to private industry technologies, and any
  other relevant factors) that demonstrates that the proposed contract is
  in the best interests of the United States when compared to the normal
  government-funded procurement process for construction projects; and
  (2) a period of 21 days has expired following the date on which the
  justification and analysis are received by Congress.
  (e) APPROPRIATIONS LIMITATION- Each contract entered into under this section
  shall include a provision that the obligation of the United States to make
  payments under the contract (except payments pursuant to subsection (c)(4))
  in any fiscal year is subject to the availability of appropriations for
  that purpose.
  (f) DURATION OF AUTHORITY- The authority to enter into contracts under
  this section shall terminate on September 30, 1996.
  (g) REPORT- The Secretary of Energy shall provide a report to Congress
  by February 1, 1996, analyzing the benefits of the contracts entered into
  pursuant to this section and making recommendations concerning extension
  of the authority of this section beyond September 30, 1996.