article: SECTION 1. PRIVATIZATION OF WASTE CLEANUP AND MODERNIZATION ACTIVITIES OF DEFENSE NUCLEAR FACILITIES. (a) Contract Authority.--Notwithstanding any other law, the Secretary of Energy may enter into 1 or more long-term contracts for the procurement, from a facility located within 25 miles of a current or former Department of Energy defense nuclear facility, of products and services that are determined by the Secretary to be necessary to support waste cleanup and modernization activities at such facilities, including the following services and related products: (1) Waste remediation and environmental restoration, including treatment, storage, and disposal. (2) Technical services. (3) Energy production. (4) Utility services. (5) Effluent treatment. (6) General storage. (7) Fabrication and maintenance. (8) Research and testing. (b) Contract Provisions.--A contract under subsection (a)-- (1) shall be for a term of not more than 30 years; (2) shall include options for 2 10-year extensions of the contract; (3) when nuclear or hazardous material is involved, shall include an agreement to-- (A) provide indemnification pursuant to section 170d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)); (B) indemnify, protect, and hold harmless the contractor from and against all liability, including liability for legal costs, relating to any preexisting conditions at any part of the defense nuclear facility managed under the contract; (C) indemnify, protect, and hold harmless the contractor from and against all liability to third parties, including liability for legal costs, relating to claims for personal injury, illness, property damage, and consequential damages; and (D) provide for indemnification of subcontractors as described in subparagraphs (A), (B), and (C); (4) shall permit the contractor (in accordance with Federal law) to obtain a patent for and use for commercial purposes a technology developed by the contractor in the performance of the contract; (5) shall not provide for payment to the contractor of cost plus a percentage of cost or cost plus a fixed fee; and (6) shall include such other terms and conditions as the Secretary of Energy considers appropriate to protect the interests of the United States. (c) Preference for Local Residents.--In entering into contracts under subsection (a), the Secretary of Energy shall give preference, consistent with Federal, State, and local law, to entities that plan to hire, to the maximum extent practicable, residents of the vicinity of the Department of Energy defense nuclear facility concerned and to persons who have previously been employed by the Department of Energy or its private contractor at the facility. (d) Subsequently Enacted Requirements.-- (1) Definition.--In this subsection, the term ``applicable requirement'' means a requirement in an Act of Congress or regulation that applies specifically to activities described in subsection (a). (2) Increased costs.-- (A) In general.--A contractor under a contract under subsection (a) shall be exempt from an applicable requirement that would increase the cost of performing the contract that is-- (i) imposed by regulation by a Federal, State, or local governmental agency after the date on which the contract is entered into unless the regulation is issued under an Act of Congress described in the exception stated in clause (ii); or (ii) imposed by an Act of Congress enacted after the date of enactment of this Act, except an Act of Congress that refers to this paragraph and explicitly states that it is the intent of Congress to subject such a contractor to the requirement. (B) Amendment of contract.--In the case of enactment of an Act of Congress described in the exception stated in subparagraph (A)(ii), the Secretary of Energy and the contractor shall negotiate an amendment to a contract under subsection (a) providing full compensation to the contractor for the increased cost incurred in order to comply with any additional requirement of law. (3) Reduced costs.-- (A) In general.--A contractor under a contract under subsection (a) may elect to be governed by a change in a requirement that would reduce the cost of performing the contract that is-- (i) adopted by regulation by a Federal, State, or local governmental agency after the date on which the contract is entered into, unless the change is made pursuant to an Act of Congress that refers to this paragraph and explicitly states that it is the intent of Congress to continue to subject such a contractor to that requirement, as in effect prior to the date of enactment of that Act of Congress; or (ii) enacted by an Act of Congress enacted after the date of enactment of this Act, except an Act of Congress that refers to this paragraph and explicitly states that it is the intent of Congress to continue to subject such a contractor to that requirement, as in effect prior to the date of enactment of that Act of Congress. (B) Amendment of contract.--In the case of a change in a requirement that is to be applied to a contractor that will reduce the cost of performing the contract, the Secretary of Energy and the contractor shall negotiate an amendment to a contract under subsection (a) providing for a reduction in the amount of compensation to be paid to the contractor commensurate with the amount of any reduction in costs resulting from the change. (e) Payment of Balance of Unamortized Costs.-- (1) Definition.--In this subsection, the term ``special facility'' means land, a depreciable building, structure, or utility, or depreciable machinery, equipment, or material that is not supplied to a contractor by the Department of Energy. (2) Contract term.--A contract under subsection (a) may provide that if the contract is terminated for the convenience of the Government, the Secretary of Energy shall pay the unamortized balance of the cost of any special facility acquired or constructed by the contractor for performance of the contract. (3) Source of funds.--The Secretary of Energy may make a payment under a contract term described in paragraph (2) and pay any other costs assumed by the Secretary as a result of the termination out of any appropriations that are available to the Department of Energy for operating expenses for the fiscal year in which the termination occurs or for any subsequent fiscal year. (f) Lease of Federally Owned Land.-- (1) In general.--Notwithstanding any other provision of law, the Secretary of Energy may lease federally owned land at a current or former Department of Energy defense nuclear facility to a contractor in order to provide for or to facilitate the construction of a facility in connection with a contract under subsection (a). (2) Term.--The term of a lease under this paragraph shall be the lesser of-- (A) the expected useful life of the facility to be constructed; or (B) the term of the contract. (3) Terms and conditions.--A lease under paragraph (1) shall-- (A) require the contractor to pay rent in amounts that the Secretary of Energy considers to be appropriate; and (B) include such other terms and conditions as the Secretary of Energy considers to be appropriate. (g) Nuclear Standards.--The Secretary of Energy shall, whenever practicable, consider applying commercial nuclear standards to a facility used in the performance of a contract under subsection (a). (h) Limitation on Liability.-- (1) Definitions.--In this subsection, the terms ``hazardous substance'', ``pollutant or contaminant'', ``release'', and ``response'' have the meanings stated in section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601). (2) In general.--A contractor under a contract under subsection (a) or a subcontractor of the contractor shall not be liable under Federal, State, or local law for any injury, cost, damage, expense, or other relief on a claim by any person for death, personal injury, illness, loss of or damage to property, or economic loss caused by a release or threatened release of a hazardous substance or pollutant or contaminant during performance of the contract unless the release or threatened release is caused by conduct of the contractor or subcontractor that is negligent or that constitutes intentional misconduct. (3) Repose.--No action (including an action for contribution or indemnity) to recover for damage to real or personal property, economic loss, personal injury, illness, death, or other expense or cost arising out of the performance under this section of a response action under a contract under subsection (a) may be brought against the contractor (or subcontractor of the contractor) under Federal, State, or local law after the date that is 6 years after the date of substantial completion of the response action. SEC. 2. PREFERENCE AND ECONOMIC DIVERSIFICATION FOR COMMUNITIES AND LOCAL RESIDENTS. (a) Definition.--In this section, the term ``qualifying Department of Energy site'' means a site that contains at least 1 current or former Department of Energy defense nuclear facility for which the Secretary of Energy is required by section 3161 of the National Defense Authorization Act for Fiscal Year 1993 (42 U.S.C. 7274h) to develop a plan for restructuring the work force. (b) Preference.--In entering into a contract with a private entity for products to be acquired or services to be performed at a qualifying Department of Energy site, the Secretary of Energy and contractors under the Secretary's supervision shall, to the maximum extent practicable, give preference to an entity that is otherwise qualified and within the competitive range (as determined under section 15.609 of title 48, Code of Federal Regulations, or a successor regulation, as in effect on the date of the determination) that plans to-- (1) provide products and services originating from communities within 25 miles of the site; (2) hire residents living in the vicinity of the site, especially dislocated site workers, to perform the contract; and (3) invest in value-added activities in the vicinity of the site to mitigate adverse economic development impacts resulting from closure or restructuring of the site. (c) Applicability.--Preference shall be given under subsection (b) only with respect to a contract for an environmental management and restoration activity that is entered into after the date of enactment of this Act. (d) Termination.--This section shall expire on September 30, 1999.
summary: Authorizes the Secretary of Energy to enter into one or more contracts with facilities located within 25 miles of a current or former Department of Energy (DOE) defense nuclear facility for the procurement of products and services to support waste cleanup and modernization activities at such nuclear facilities. Requires the Secretary to give preference to facilities that plan to hire, to the maximum extent practicable, residents in the vicinity of the defense nuclear facility who are employed or who have previously been employed by DOE or its private contractor at the facility. Prohibits any person from bringing a claim against a contractor or subcontractor for injury, cost, damage, illness, death, damage to property, or economic loss caused by a release of a hazardous contaminant during performance of the contract, unless such release or threatened release is caused by contractor or subcontractor negligence or intentional misconduct. Sets forth a six year statute of limitations for commencement of such actions. Directs the Secretary and contractors under the Secretary's supervision, in entering into a contract or subcontract with a private entity for products to be acquired or services to be performed at a qualifying DOE site, to give preference to an entity (otherwise qualified and within the competitive range) that plans to: (1) provide products and services originating from communities within 25 miles of the site; (2) hire residents living in the site's vicinity to perform the contract (especially dislocated site workers); and (3) invest in value-added activities in the site's vicinity to mitigate adverse economic development impacts resulting from closure or restructuring of the site.