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CONFERENCE REPORT ON H.R. 4733, ENERGY AND WATER DEVELOPMENT APPROPRIATIONS ACT, 2001 -- (House of Representatives - September 27, 2000)

The conference agreement provides $277,812,000 for Non-Defense Environmental Management instead of $281,001,000 as proposed by the House and $309,141,000 as proposed by the Senate. Funding of $5,000,000 is

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provided to expedite environmental cleanup at the Brookhaven National Laboratory. No funding has been provided for the Atlas site in Moab, Utah, which has not been authorized. The recommendation transfers $1,900,000 from the post-2006 program to the site/project completion program to maintain the schedule for completing cleanup of three Oakland geographic sites.

   URANIUM FACILITIES MAINTENANCE AND REMEDIATION

   The conference agreement provides $393,367,000 for uranium activities instead of $301,400,000 as proposed by the House and $297,778,000 as proposed by the Senate, and adopts the budget structure proposed by the House.

   URANIUM ENRICHMENT DECONTAMINATION AND DECOMMISSIONING FUND

   The conference agreement includes $345,038,000 for the uranium enrichment decontamination and decommissioning fund. This includes $273,038,000 for cleanup activities and $72,000,000 for uranium and thorium reimbursements. The conferees recognize there are eligible uranium and thorium licensee claims under Title X of the Energy Policy Act that have been approved for reimbursement, but not yet paid in full. Additional funding of $42,000,000 over the budget request of $30,000,000 has been provided for these payments.

   Uranium Programs

   The conference agreement provides $62,400,000 for uranium activities, an increase of $9,000,000 over the budget request of $53,400,000. Additional funding of $9,000,000, as proposed by the Senate, has been provided for activities associated with the depleted uranium hexafluoride (DUF6) management and conversion project.

   DOMESTIC URANIUM INDUSTRY

   The conferees are very concerned about the front end of the U.S. nuclear fuel cycle. The conferees direct the Secretary to work with the President and other Federal agencies to ensure that current laws with respect to the privatization of USEC and with respect to the implementation of the Russian HEU agreement and their impact on United States domestic capabilities are carried out. In addition, the Secretary is instructed to take timely measures to ensure that conversion capability is not lost in the United States. The conferees expect that any such measures will not interfere with the implementation of the Russian HEU agreement and the important national security goals it is accomplishing.

   The conferees direct the Secretary to undertake an evaluation and make specific recommendations on the various options to sustain a domestic uranium enrichment industry in the short and long-term to be delivered to Congress no later than December 31, 2000. The Secretary's evaluation shall include recommendations for dealing with the Portsmouth facility and its role in maintaining a secure and sufficient domestic supply of enriched uranium. Further, this investigation should consider the technological viability and commercial feasibility of all proposed enrichment technologies including various centrifuge options, AVLIS and SILEX technologies, or other emerging technology. The evaluation should also consider the role of the Federal government in developing and supporting the implementation and regulation of these new technologies in order to secure a reliable and competitive source of domestic nuclear fuel.

   FUNDING ADJUSTMENT

   A reduction of $14,071,000 reflects the transfer of safeguards and security costs in accordance with the Department's amended budget request.

   Science

   The conference agreement provides $3,186,352,000 instead of $2,830,915,000 as proposed by the House and $2,870,112,000 as proposed by the Senate. The conference agreement does not include the Senate language earmarking funds for various purposes and limiting funding for the small business innovation research program.

   High energy physics.--The conference agreement provides $726,130,000 for high energy physics and reflects the adjustments recommended in the Science budget amendment submitted by the Department. Funding of $230,931,000 has been provided for facility operations at the Fermi National Accelerator Laboratory.

   Nuclear physics.--The conference agreement provides $369,890,000 for nuclear physics, the same as the original budget request.

   Biological and environmental research.--The conference agreement includes $500,260,000 for biological and environmental research. The conferees have included $20,135,000 for the low-dose effects program, an increase of $8,453,000 over the budget request. The conference agreement provides $9,000,000 for molecular nuclear medicine.

   The conferees have provided the budget request of $2,500,000 for the Laboratory for Comparative and Functional Genomics at Oak Ridge National Laboratory.

   The conference agreement includes $2,000,000 for the Discovery Science Center in Orange County, California; $1,500,000 for the Children's Hospital emergency power plant in San Diego; $1,000,000 for the Center for Science and Education at the University of San Diego; $500,000 for the bone marrow transplant program at Children's Hospital Medical Center Foundation in Oakland, California; $1,000,000 for the North Shore Long Island Jewish Health System in New York; $1,700,000 for the Museum of Science and Industry in Chicago; $2,000,000 for the Livingston Digital Millenium Center to be located at Tulane University; and $1,000,000 for the Center for Nuclear Magnetic Resonance at the University of Alabama-Birmingham.

   The conference agreement includes $3,000,000 for the Nanotechnology Engineering Center at the University of Notre Dame in South Bend, Indiana; $2,000,000 for the School of Public Health at the University of South Carolina for modernization upgrades; $2,000,000 for the National Center for Musculoskeletal Research at the Hospital for Special Surgery in New York; and $1,300,000 for the Western States Visibility Assessment Program at New Mexico Tech to trace emissions resulting from energy consumption.

   The conference agreement includes $1,000,000 for high temperature super conducting research and development at Boston College; $2,500,000 for the positron emission tomography facility at West Virginia University; $1,000,000 for the advanced medical imaging center at Hampton University; $500,000 for the Natural Energy Laboratory in Hawaii; $800,000 for the Child Health Institute of New Brunswick, New Jersey; and $900,000 for the linear accelerator for University Medical Center of Southern Nevada.

   The conference agreement also includes $200,000 for the study of biological effects of low level radioactive activity at University of Nevada-Las Vegas; $1,000,000 for the Medical University of South Carolina Oncology Center; $11,000,000 for development of technologies using advanced functional brain imaging methodologies, including magneto-encephalography, for conduct of basic research in mental illness and neurological disorders, and for construction; $2,000,000 for a science and technology facility at New Mexico Highlands University; $2,000,000 for the University of Missouri-Columbia to expand the federal investment in the university's nuclear medicine and cancer research capital program; and $2,000,000 for the Inland Northwest Natural Resources Research Center at Gonzaga University.

   Basic energy sciences.--The conference agreement includes $1,013,370,000 for basic energy sciences. The conferees have included $8,000,000 for the Experimental Program to Stimulate Competitive Research (EPSCoR).

   Spallation Neutron Source.--The recommendation includes $278,600,000, including $259,500,000 for construction and $19,100,000 for related research and development, the same as the amended budget request, for the Spallation Neutron Source.

   Advanced scientific computing research.--The conference agreement includes $170,000,000 for advanced scientific computing research.

   Energy research analyses.--The conference agreement includes $1,000,000 for energy research analyses, the same amount provided by the House and the Senate.

   Multiprogram energy labs--facility support.--The conference agreement includes $33,930,000 for multi-program energy labs-facility support.

   Fusion energy sciences.--The conference agreement includes $255,000,000, as proposed by the House, for fusion energy sciences.

   Safeguards and security.--Consistent with the Department's amended budget request for safeguards and security, the conference agreement includes $49,818,000 for safeguards and security activities at laboratories and facilities managed by the Office of Science. This is offset by a reduction of $38,244,000 that is to be allocated among the various programs which budgeted for safeguards and security costs in their overhead accounts.

   Program Direction.--The conference agreement includes $139,245,000 for program direction. Funding of $4,500,000 has been provided for science education.

   Funding adjustments.--A reduction of $38,244,000 reflects the allocation of safeguards and security costs in accordance with the Department's amended budget request. A general reduction of $34,047,000 has been applied to this account.

   NUCLEAR WASTE DISPOSAL

   The conference agreement provides $191,074,000 for Nuclear Waste Disposal instead of $213,000,000 as proposed by the House and $59,175,000 as proposed by the Senate. Combined with the appropriation of $200,000,000 to the Defense Nuclear Waste Disposal account, a total of $391,074,000 will be available for program activities in fiscal year 2001. The funding level reflects a reduction of $39,500,000 from the budget request and the transfer of $6,926,000 in safeguards and security costs in accordance with the Department's amended budget request.

   In addition, the conferees recommend that $10,000,000 of funds previously appropriated for interim waste storage activities in Public Law 104-46 may be made available upon written certification by the Secretary of Energy to the House and Senate Committees on Appropriations that the site recommendation report cannot be completed on time without additional funding.

   Site recommendation report.--The conferees reiterate the expectation by Congress that the Department submit its site recommendation report in July 2001 according to the current schedule. While the conference agreement does not provide the full funding requested by the Department, the conferees expect the Department to promptly submit a reprogramming request if it becomes apparent that limited funding will delay the site recommendation report beyond July 2001.

   The conferees further expect that, if the site is approved, the Department will continue to analyze further design improvements and enhancements between that time

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and the submittal of a license application to the Nuclear Regulatory Commission.

   State oversight funding.--The conference agreement includes $2,500,000 for the State of Nevada. This funding will be provided to the Department of Energy which will reimburse the State for actual expenditures on appropriate scientific oversight responsibilities conducted pursuant to the Nuclear Waste Policy Act of 1982. These funds are to be provided to the Nevada Division of Emergency Management for program management and execution and may not be used for payment of salaries and expenses for State employees.

   Local oversight funding.--The conference agreement includes $6,000,000 for affected units of local government. The conferees expect the Department to provide the full amount of funding allocated to the State and local counties for oversight activities. Any proposed reduction to the amounts identified by Congress for State and local oversight will require prior approval of a reprogramming request by the Committees on Appropriations.

   Limitation on the use of funds to promote or advertise public tours.--The conferees direct that none of the funds be used to promote or advertise any public tour of the Yucca Mountain facility, other than public notice that is required by statute or regulation.

   Departmental Administration

   The conference agreement provides $226,107,000 for Departmental Administration instead of $153,527,000 as proposed by the House and $210,128,000 as proposed by the Senate. Additional funding adjustments include a transfer of $25,000,000 from Other Defense Activities; the use of $8,000,000 of prior year balances; and a reduction of $18,000 for safeguards and security costs. Revenues of $151,000,000 are estimated to be received in fiscal year 2001, resulting in a net appropriation of $75,107,000.

   The conference agreement provides $5,000,000 for the Office of the Secretary as proposed by the House. All funds for the newly established National Nuclear Security Administration have been provided in the defense portion of this bill.

   The conference agreement provides $32,148,000 for the Chief Financial Officer, an increase of $1,400,000 over the budget request of $30,748,000. These additional funds are to support the DOE project management career development program.

   Working capital fund.--The conference agreement does not include statutory language proposed by the House prohibiting funding Federal employee salaries and expenses in the working capital fund. However, any proposal by the Department to transfer salaries and expenses to the working capital fund will require prior approval by the House and Senate Committees on Appropriations.

   Cost of work for others.--The conference agreement includes a one-time increase of $40,000,000 in the cost of work for others program to accommodate safeguards and security requirements. It is anticipated that this amount will be offset by an estimated $40,000,000 in revenues derived from non-Department of Energy customers for the purpose of funding safeguards and security activities throughout the Department. In fiscal year 2002 and beyond, the conferees expect the Department to submit a safeguards and security budget that includes amounts obtained previously from other agencies or customers.

   Office of the Inspector General

   The conference agreement provides $31,500,000 for the Inspector General as proposed by the House instead of $28,988,000 as proposed by the Senate. The conference agreement does not include statutory language proposed by the House requiring a study of the economic basis of recent gasoline price levels.

   ATOMIC ENERGY DEFENSE ACTIVITIES

   National Nuclear Security Administration

   The conferees support the Administrator's efforts to establish and fill critical positions within the National Nuclear Security Administration (NNSA). The conferees agree that the Administrator's authority should not be impacted by any action that would otherwise limit or preclude hiring which may occur as a result of a change of administrations, and that the Administrator should to the maximum extent possible under applicable statutes proceed with effecting appointments.

   WEAPONS ACTIVITIES

   The conference agreement provides $5,015,186,000 for Weapons Activities instead of $4,579,684,000 as proposed by the House and $4,883,289,000 as proposed by the Senate. Statutory language proposed by the House limiting the funds availability to two years has not been included by the conferees.

   Reprogramming.--The conference agreement provides limited reprogramming authority of $5,000,000 or 5 percent, whichever is less, within the Weapons Activities account without submission of a reprogramming to be approved in advance by the House and Senate Committees on Appropriations. No individual program account may be increased or decreased by more than this amount during the fiscal year using this reprogramming authority. This should provide the needed flexibility to manage this account.

   Congressional notification within 30 days of the use of this reprogramming authority is required. Transfers which would result in increases or decreases in excess of $5,000,000 or 5 percent to an individual program account during the fiscal year require prior notification and approval from the House and Senate Committees on Appropriations.

   The Department is directed to submit a report to the Committees on Appropriations by January 15, 2001, that reflects the allocation of the safeguards and security reduction, the use of prior year balances and the application of general reductions, and any proposed accounting adjustments.

   Directed stockpile work.--In stockpile research and development, additional funding of $19,000,000 has been provided for life extension development activities and to support additional sub-critical experiments. Additional funding of $10,000,000 has been provided to support activities required to maintain the delivery date for a certified pit. No additional funds are provided for cooperative research on hard and deeply buried targets.

   Funding for stockpile maintenance has been increased by $22,000,000 as follows: $13,000,000 for life extension operations and development and engineering activities; $5,000,000 for the Kansas City Plant; and $4,000,000 for the Y-12 Plant.

   Funding for stockpile evaluation has been increased by $23,000,000 as follows: $6,000,000 for the elimination of the testing backlog and joint test equipment procurements; $8,000,000 for the Pantex Plant; $6,000,000 for the Y-12 Plant; and $3,000,000 for the Savannah River Plant.

   Campaigns.--The conference agreement provides $41,400,000 for pit certification, the same as the budget request. Additional funding of $10,000,000 has been provided for dynamic materials properties to support the maintenance of core scientific capabilities, Liner Demonstration Experiments, and other various multi-campaign supporting physics demonstrations for the Atlas pulsed power facility at the Los Alamos National Laboratory and the Nevada Test Site.

   An additional $15,000,000 has been provided to support research, development and pre-conceptual design studies for an advanced hydrodynamic test facility using protons.

   Additional funding of $17,000,000 has been provided for enhanced surveillance activities as follows: $3,000,000 for the Kansas City Plant; $7,000,000 for the Pantex Plant; $4,000,000 for the Y-12 Plant; $1,000,000 for the Savannah River Plant; and $2,000,000 to support accelerated deployment of test and diagnostic equipment.

   Funding for pit manufacturing readiness is increased by $17,000,000. An increase of $2,000,000 is provided to initiate conceptual design work on a pit manufacturing facility. Additional funding of $15,000,000 is provided to support the pit production program which is now behind schedule and over cost. The conferees strongly support the Senate language regarding the Department's lack of attention to this critical program and the requirement for a progress report by December 1, 2000, and each quarter thereafter.


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