TITLE XXXII—NATIONAL NUCLEAR SECURITY ADMINISTRATION

SEC. 3201. SHORT TITLE.

This title may be cited as the ‘National Nuclear Security AdministrationAct’.

SEC. 3202. UNDER SECRETARY FOR NUCLEAR SECURITY OF DEPARTMENT OF ENERGY.

Section 202 of the Department of Energy Organization Act (42 U.S.C.7132) is amended by adding at the end the following new subsection:

‘(c)(1) There shall be in the Department an Under Secretary for NuclearSecurity, who shall be appointed by the President, by and with the adviceand consent of the Senate. The Under Secretary shall be compensated atthe rate provided for at level III of the Executive Schedule under section5314 of title 5, United States Code.
‘(2) The Under Secretary for Nuclear Security shall be appointed fromamong persons who—
‘(A) have extensive background in national security, organizationalmanagement, and appropriate technical fields; and
‘(B) are well qualified to manage the nuclear weapons, nonproliferation,and materials disposition programs of the National Nuclear Security Administrationin a manner that advances and protects the national security of the UnitedStates.
‘(3) The Under Secretary for Nuclear Security shall serve as the Administratorfor Nuclear Security under section 3212 of the National Nuclear SecurityAdministration Act. In carrying out the functions of the Administrator,the Under Secretary shall be subject to the authority, direction, and controlof the Secretary. Such authority, direction, and control may be delegatedonly to the Deputy Secretary of Energy, without redelegation.’.

SEC. 3203. ESTABLISHMENT OF POLICY FOR NATIONAL NUCLEAR SECURITY ADMINISTRATION.

(a) ESTABLISHMENT OF POLICY FOR ADMINISTRATION- The Department of EnergyOrganization Act is amended by adding at the end of title II (42 U.S.C.7131 et seq.) the following new section:

‘ESTABLISHMENT OF POLICY FOR NATIONAL NUCLEAR SECURITY ADMINISTRATION
‘SEC. 213. (a) The Secretary shall be responsible for establishingpolicy for the National Nuclear Security Administration.
‘(b) The Secretary may direct officials of the Department who are notwithin the National Nuclear Security Administration to review the programsand activities of the Administration and to make recommendations to theSecretary regarding administration of those programs and activities, includingconsistency with other similar programs and activities of the Department.
‘(c) The Secretary shall have adequate staff to support the Secretaryin carrying out the Secretary’s responsibilities under this section.’.

(b) CLERICAL AMENDMENT- The table of contents at the beginning of theDepartment of Energy Organization Act is amended by inserting after theitem relating to section 212 the following new item:

 ‘213. Establishment of policy for National Nuclear Security Administration.’.

SEC. 3204. ORGANIZATION OF DEPARTMENT OF ENERGY COUNTERINTELLIGENCEAND INTELLIGENCE PROGRAMS AND ACTIVITIES.

(a) ESTABLISHMENT OF OFFICES- The Department of Energy OrganizationAct (42 U.S.C. 7101 et seq.) is amended by inserting after section 213,as added by section 3203(a), the following new sections:

‘ESTABLISHMENT OF SECURITY, COUNTERINTELLIGENCE, AND INTELLIGENCE POLICIES
‘SEC. 214. The Secretary shall be responsible for developing and promulgatingthe security, counterintelligence, and intelligence policies of the Department.The Secretary may use the immediate staff of the Secretary to assist indeveloping and promulgating those policies.
‘OFFICE OF COUNTERINTELLIGENCE
‘SEC. 215.
(a) There is within the Department an Office of Counterintelligence.
‘(b)(1) The head of the Office shall be the Director of the Officeof Counterintelligence, which shall be a position
in the Senior Executive Service. The Director of the Office shall reportdirectly to the Secretary.
‘(2) The Secretary shall select the Director of the Office from amongindividuals who have substantial expertise in matters relating to counterintelligence.
‘(3) The Director of the Federal Bureau of Investigation may detail,on a reimbursable basis, any employee of the Bureau to the Department forservice as Director of the Office. The service of an employee of the Bureauas Director of the Office shall not result in any loss of status, right,or privilege by the employee within the Bureau.
‘(c)(1) The Director of the Office shall be responsible for establishingpolicy for counterintelligence programs and activities at Department facilitiesin order to reduce the threat of disclosure or loss of classified and othersensitive information at such facilities.
‘(2) The Director of the Office shall be responsible for establishingpolicy for the personnel assurance programs of the Department.
‘(3) The Director shall inform the Secretary, the Director of CentralIntelligence, and the Director of the Federal Bureau of Investigation ona regular basis, and upon specific request by any such official, regardingthe status and effectiveness of the counterintelligence programs and activitiesat Department facilities.
‘(d)(1) Not later than March 1 each year, the Director of the Officeshall submit a report on the status and effectiveness of the counterintelligenceprograms and activities at each Department facility during the precedingyear. Each such report shall be submitted to the following:
‘(A) The Secretary.
‘(B) The Director of Central Intelligence.
‘(C) The Director of the Federal Bureau of Investigation.
‘(D) The Committee on Armed Services and the Permanent Select Committeeon Intelligence of the House of Representatives.
‘(E) The Committee on Armed Services and the Select Committee on Intelligenceof the Senate.
‘(2) Each such report shall include for the year covered by the reportthe following:
‘(A) A description of the status and effectiveness of the counterintelligenceprograms and activities at Department facilities.
‘(B) A description of any violation of law or other requirement relatingto intelligence, counterintelligence, or security at such facilities, including—
‘(i) the number of violations that were investigated; and
‘(ii) the number of violations that remain unresolved.
‘(C) A description of the number of foreign visitors to Departmentfacilities, including the locations of the visits of such visitors.
‘(D) The adequacy of the Department’s procedures and policies for protectingnational security information, making such recommendations to Congressas may be appropriate.
‘(E) A determination of whether each Department of Energy nationallaboratory is in full compliance with all departmental security requirementsand, in the case of any such laboratory that is not, what measures arebeing taken to bring that laboratory into compliance.
‘(3) Not less than 30 days before the date that the report requiredby paragraph (1) is submitted, the director of each Department of Energynational laboratory shall certify in writing to the Director of the Officewhether that laboratory is in full compliance with all departmental securityrequirements and, if not, what measures are being taken to bring that laboratoryinto compliance and a schedule for implementing those measures.
‘(4) Each report under this subsection as submitted to the committeesreferred to in subparagraphs (D) and (E) of paragraph (1) shall be submittedin unclassified form, but may include a classified annex.

OFFICE OF INTELLIGENCE

‘SEC. 216.

‘(a) There is within the Department an Office of Intelligence.
‘(b)(1) The head of the Office shall be the Director of the Officeof Intelligence, which shall be a position in the Senior Executive Service.The Director of the Office shall report directly to the Secretary.
‘(2) The Secretary shall select the Director of the Office from amongindividuals who have substantial expertise in matters relating to foreignintelligence.
‘(c) Subject to the authority, direction, and control of the Secretary,the Director of the Office shall perform such duties and exercise suchpowers as the Secretary may prescribe.’.
(b) CLERICAL AMENDMENT- The table of contents at the beginning of theDepartment of Energy Organization Act is amended by inserting after theitem relating to section 213, as added by section 3203(b), the followingnew items:

 ‘214. Establishment of security, counterintelligence, and intelligencepolicies.
 ‘215. Office of Counterintelligence.
 ‘216. Office of Intelligence.’.

                                         Subtitle A—Establishment and Organization

SEC. 3211. ESTABLISHMENT AND MISSION.

(a) ESTABLISHMENT- There is established within the Department of Energya separately organized agency to be known as the National Nuclear SecurityAdministration (in this title referred to as the ‘Administration’).
(b) MISSION- The mission of the Administration shall be the following:
(1) To enhance United States national security through the militaryapplication of nuclear energy.
(2) To maintain and enhance the safety, reliability, and performanceof the United States nuclear weapons stockpile, including the ability todesign, produce, and test, in order to meet national security requirements.
(3) To provide the United States Navy with safe, militarily effectivenuclear propulsion plants and to ensure the safe and reliable operationof those plants.
(4) To promote international nuclear safety and nonproliferation.
(5) To reduce global danger from weapons of mass destruction.
(6) To support United States leadership in science and technology.
(c) OPERATIONS AND ACTIVITIES TO BE CARRIED OUT CONSISTENT WITH CERTAINPRINCIPLES- In carrying out the mission of the Administration, the Administratorshall ensure that all operations and activities of the Administration areconsistent with the principles of protecting the environment and safeguardingthe safety and health of the public and of the workforce of the Administration.

SEC. 3212. ADMINISTRATOR FOR NUCLEAR SECURITY.

(a) IN GENERAL-
(1) There is at the head of the Administration an Administrator forNuclear Security (in this title referred to as the ‘Administrator’).
(2) Pursuant to subsection © of section 202 of the Departmentof Energy Organization Act (42 U.S.C. 7132), as added by section 3202 ofthis Act, the Under Secretary for Nuclear Security of the Department ofEnergy serves as the Administrator.
(b) FUNCTIONS- The Administrator has authority over, and is responsiblefor, all programs and activities of the Administration (except for thefunctions of the Deputy Administrator for Naval Reactors specified in theExecutive order referred to in section 3216(b)), including the following:
(1) Strategic management.
(2) Policy development and guidance.
(3) Budget formulation, guidance, and execution, and other financialmatters.
(4) Resource requirements determination and allocation.
(5) Program management and direction.
(6) Safeguards and security.
(7) Emergency management.
(8) Integrated safety management.
(9) Environment, safety, and health operations.
(10) Administration of contracts, including the management and operationsof the nuclear weapons production facilities and the national securitylaboratories.
(11) Intelligence.
(12) Counterintelligence.
(13) Personnel, including the selection, appointment, distribution,supervision, establishing of compensation, and separation of personnelin accordance with subtitle C of this title.
(14) Procurement of services of experts and consultants in accordancewith section 3109 of title 5, United States Code.
(15) Legal matters.
(16) Legislative affairs.
(17) Public affairs.
(18) Liaison with other elements of the Department of Energy and withother Federal agencies, State, tribal, and local governments, and the public.
(c) PROCUREMENT AUTHORITY- The Administrator is the senior procurementexecutive for the Administration for the purposes of section 16(3) of theOffice of Federal Procurement Policy Act (41 U.S.C. 414(3)).
(d) POLICY AUTHORITY- The Administrator may establish Administration-specificpolicies, unless disapproved by the Secretary of Energy.

SEC. 3213. STATUS OF ADMINISTRATION AND CONTRACTOR PERSONNEL WITHIN
DEPARTMENT OF ENERGY.

(a) STATUS OF ADMINISTRATION PERSONNEL- Each officer or employee ofthe Administration, in carrying out any function of the Administration—
(1) shall be responsible to and subject to the authority, direction,and control of—
(A) the Secretary acting through the Administrator and consistent withsection 202(c)(3) of the Department of Energy Organization Act;
(B) the Administrator; or
(C) the Administrator’s designee within the Administration; and
(2) shall not be responsible to, or subject to the authority, direction,or control of, any other officer, employee, or agent of the Departmentof Energy.
(b) STATUS OF CONTRACTOR PERSONNEL- Each officer or employee of a contractorof the Administration, in carrying out any function of the Administration,shall not be responsible to, or subject to the authority, direction, orcontrol of, any officer, employee, or agent of the Department of Energywho is not an employee of the Administration, except for the Secretaryof Energy consistent with section 202(c)(3) of the Department of EnergyOrganization Act.
(c) CONSTRUCTION OF SECTION- Subsections (a) and (b) may not be interpretedto in any way preclude or interfere with the communication of technicalfindings derived from, and in accord with, duly authorized activities between(1) the head, or any contractor employee, of a national security laboratoryor of a nuclear weapons production facility, and (2) the Department ofEnergy, the President, or Congress.

SEC. 3214. DEPUTY ADMINISTRATOR FOR DEFENSE PROGRAMS.

(a) IN GENERAL- There is in the Administration a Deputy Administratorfor Defense Programs, who is appointed by the President, by and with theadvice and consent of the Senate.
(b) DUTIES- Subject to the authority, direction, and control of theAdministrator, the Deputy Administrator for Defense Programs shall performsuch duties and exercise such powers as the Administrator may prescribe,including the following:
(1) Maintaining and enhancing the safety, reliability, and performanceof the United States nuclear weapons stockpile, including the ability todesign, produce, and test, in order to meet national security requirements.
(2) Directing, managing, and overseeing the nuclear weapons productionfacilities and the national security laboratories.
(3) Directing, managing, and overseeing assets to respond to incidentsinvolving nuclear weapons and materials.
(c) RELATIONSHIP TO LABORATORIES AND FACILITIES- The head of each nationalsecurity laboratory and nuclear weapons production facility shall, consistentwith applicable contractual obligations, report to the Deputy Administratorfor Defense Programs.

SEC. 3215. DEPUTY ADMINISTRATOR FOR DEFENSE NUCLEAR NONPROLIFERATION.

(a) IN GENERAL- There is in the Administration a Deputy Administratorfor Defense Nuclear Nonproliferation, who is appointed by the President,by and with the advice and consent of the Senate.
(b) DUTIES- Subject to the authority, direction, and control of theAdministrator, the Deputy Administrator for Defense Nuclear Nonproliferationshall perform such duties and exercise such powers as the Administratormay prescribe, including the following:
(1) Preventing the spread of materials, technology, and expertise relatingto weapons of mass destruction.
(2) Detecting the proliferation of weapons of mass destruction worldwide.
(3) Eliminating inventories of surplus fissile materials usable fornuclear weapons.
(4) Providing for international nuclear safety.

SEC. 3216. DEPUTY ADMINISTRATOR FOR NAVAL REACTORS.

(a) IN GENERAL-
(1) There is in the Administration a Deputy Administrator for NavalReactors. The director of the Naval Nuclear Propulsion Program providedfor under the Naval Nuclear Propulsion Executive Order shall serve as theDeputy Administrator for Naval Reactors.
(2) Within the Department of Energy, the Deputy Administrator shallreport to the Secretary of Energy through the Administrator and shall havedirect access to the Secretary and other senior officials in the Department.
(b) DUTIES- The Deputy Administrator shall be assigned the responsibilities,authorities, and accountability for all functions of the Office of NavalReactors under the Naval Nuclear Propulsion Executive Order.
(c) EFFECT ON EXECUTIVE ORDER- Except as otherwise specified in thissection and notwithstanding any other provision of this title, the provisionsof the Naval Nuclear Propulsion Executive Order remain in full force andeffect until changed by law.
(d) NAVAL NUCLEAR PROPULSION EXECUTIVE ORDER- As used in this section,the Naval Nuclear Propulsion Executive Order is Executive Order Number12344, dated February 1, 1982 (42 U.S.C. 7158 note) (as in force pursuantto section 1634 of the Department of Defense Authorization Act, 1985 (PublicLaw 98-525; 42 U.S.C. 7158 note)).

SEC. 3217. GENERAL COUNSEL.

There is a General Counsel of the Administration. The General Counselis the chief legal officer of the Administration.

SEC. 3218. STAFF OF ADMINISTRATION.

(a) IN GENERAL- The Administrator shall maintain within the Administrationsufficient staff to assist the Administrator in carrying out the dutiesand responsibilities of the Administrator.
(b) RESPONSIBILITIES- The staff of the Administration shall perform,in accordance with applicable law, such of the functions of the Administratoras the Administrator shall prescribe. The Administrator shall assign tothe staff responsibility for the following functions:
(1) Personnel.
(2) Legislative affairs.
(3) Public affairs.
(4) Liaison with other elements of the Department of Energy and withother Federal agencies, State, tribal, and local governments, and the public.
 

                                  Subtitle B—Matters Relating to Security

SEC. 3231. PROTECTION OF NATIONAL SECURITY INFORMATION.

(a) POLICIES AND PROCEDURES REQUIRED- The Administrator shall establishprocedures to ensure the maximum protection of classified information inthe possession of the Administration.
(b) PROMPT REPORTING- The Administrator shall establish proceduresto ensure prompt reporting to the Administrator of any significant problem,abuse, violation of law or Executive order, or deficiency relating to themanagement of classified information by personnel of the Administration.

SEC. 3232. OFFICE OF DEFENSE NUCLEAR COUNTERINTELLIGENCE AND OFFICEOF DEFENSE NUCLEAR SECURITY.

(a) ESTABLISHMENT-
(1) There are within the Administration—
(A) an Office of Defense Nuclear Counterintelligence; and
(B) an Office of Defense Nuclear Security.
(2) Each office established under paragraph (1) shall be headed bya Chief appointed by the Secretary of Energy. The Administrator shall recommendto the Secretary suitable candidates for each such position.
(b) CHIEF OF DEFENSE NUCLEAR COUNTERINTELLIGENCE-
(1) The head of the Office of Defense Nuclear Counterintelligence isthe Chief of Defense Nuclear Counterintelligence, who shall report to theAdministrator and shall implement the counterintelligence policies directedby the Secretary and Administrator.
(2) The Secretary shall appoint the Chief, in consultation with theDirector of the Federal Bureau of Investigation, from among individualswho have special expertise in counterintelligence. If an individual toserve as the Chief of Defense Nuclear Counterintelligence is a Federalemployee of an entity other than the Administration, the service of thatemployee as Chief shall not result in any loss of employment status, right,or privilege by that employee.
(3) The Chief shall have direct access to the Secretary and all otherofficials of the Department and the contractors of the Department concerningcounterintelligence matters.
(4) The Chief shall be responsible for—
(A) the development and implementation of the counterintelligence programsof the Administration to prevent the disclosure or loss of classified orother sensitive information; and
(B) the development and administration of personnel assurance programswithin the Administration.
(c) CHIEF OF DEFENSE NUCLEAR SECURITY-
(1) The head of the Office of Defense Nuclear Security is the Chiefof Defense Nuclear Security, who shall report to the Administrator andshall implement the security policies directed by the Secretary and Administrator.
(2) The Chief shall have direct access to the Secretary and all otherofficials of the Department and the contractors of the Department concerningsecurity matters.
(3) The Chief shall be responsible for the development and implementationof security programs for the Administration, including the protection,control and accounting of materials, and for the physical and cyber securityfor all facilities of the Administration.

SEC. 3233. COUNTERINTELLIGENCE PROGRAMS.

(a) NATIONAL SECURITY LABORATORIES AND NUCLEAR WEAPONS PRODUCTION FACILITIES-The Administrator shall, at each national security laboratory and nuclearweapons production facility, establish and maintain a counterintelligenceprogram adequate to protect national security information at that laboratoryor production facility.
(b) OTHER FACILITIES- The Administrator shall, at each Administrationfacility not described in subsection (a) at which Restricted Data is located,assign an employee of the Office of Defense Nuclear Counterintelligencewho shall be responsible for and assess counterintelligence matters atthat facility.

SEC. 3234. PROCEDURES RELATING TO ACCESS BY INDIVIDUALS TO CLASSIFIEDAREAS AND INFORMATION OF ADMINISTRATION.

The Administrator shall establish appropriate procedures to ensure thatany individual is not permitted unescorted access to any classified area,or access to classified information, of the Administration until that individualhas been verified to hold the appropriate security clearances.

SEC. 3235. GOVERNMENT ACCESS TO INFORMATION ON ADMINISTRATION COMPUTERS.

(a) PROCEDURES REQUIRED- The Administrator shall establish proceduresto govern access to information on Administration computers. Those proceduresshall, at a minimum, provide that any individual who has access to informationon an Administration computer shall be required as a condition of suchaccess to provide to the Administrator written consent which permits accessby an authorized investigative agency to any Administration computer usedin the performance of the duties of such employee during the period ofthat individual’s access to information on an Administration computer andfor a period of three years thereafter.
(b) EXPECTATION OF PRIVACY IN ADMINISTRATION COMPUTERS- Notwithstandingany other provision of law (including any provision of law enacted by theElectronic Communications Privacy Act of 1986), no user of an Administrationcomputer shall have any expectation of privacy in the use of that computer.
(c) DEFINITION- For purposes of this section, the term ‘authorizedinvestigative agency’ means an agency authorized by law or regulation toconduct a counterintelligence investigation or investigations of personswho are proposed for access to classified information to ascertain whethersuch persons satisfy the criteria for obtaining and retaining access tosuch information.

SEC. 3236. CONGRESSIONAL OVERSIGHT OF SPECIAL ACCESS PROGRAMS.

(a) ANNUAL REPORT ON SPECIAL ACCESS PROGRAMS-
(1) Not later than February 1 of each year, the Administrator shallsubmit to the congressional defense committees a report on special accessprograms of the Administration.
(2) Each such report shall set forth—
(A) the total amount requested for such programs in the President’sbudget for the next fiscal year submitted under section 1105 of title 31,United States Code; and
(B) for each such program in that budget, the following:
(i) A brief description of the program.
(ii) A brief discussion of the major milestones established for theprogram.
(iii) The actual cost of the program for each fiscal year during whichthe program has been conducted before the fiscal year during which thatbudget is submitted.
(iv) The estimated total cost of the program and the estimated costof the program for (I) the current fiscal year, (II) the fiscal year forwhich the budget is submitted, and (III) each of the four succeeding fiscalyears during which the program is expected to be conducted.
(b) ANNUAL REPORT ON NEW SPECIAL ACCESS PROGRAMS- (1) Not later thanFebruary 1 of each year, the Administrator shall submit to the congressionaldefense committees a report that, with respect to each new special accessprogram, provides—
(A) notice of the designation of the program as a special access program;and
(B) justification for such designation.
(2) A report under paragraph (1) with respect to a program shall include—
(A) the current estimate of the total program cost for the program;and
(B) an identification of existing programs or technologies that aresimilar to the technology, or that have a mission similar to the mission,of the program that is the subject of the notice.
(3) In this subsection, the term ‘new special access program’ meansa special access program that has not previously been covered in a noticeand justification under this subsection.
(c) REPORTS ON CHANGES IN CLASSIFICATION OF SPECIAL ACCESS PROGRAMS-
(1) Whenever a change in the classification of a special access programof the Administration is planned to be made or whenever classified informationconcerning a special access program of the Administration is to be declassifiedand made public, the Administrator shall submit to the congressional defensecommittees a report containing a description of the proposed change, thereasons for the proposed change, and notice of any public announcementplanned to be made with respect to the proposed change.
(2) Except as provided in paragraph (3), any report referred to inparagraph (1) shall be submitted not less than 14 days before the dateon which the proposed change or public announcement is to occur.
(3) If the Administrator determines that because of exceptional circumstancesthe requirement of paragraph (2) cannot be met with respect to a proposedchange or public announcement concerning a special access program of theAdministration, the Administrator may submit the report required by paragraph(1) regarding the proposed change or public announcement at any time beforethe proposed change or public announcement is made and shall include inthe report an explanation of the exceptional circumstances.
(d) NOTICE OF CHANGE IN SAP DESIGNATION CRITERIA- Whenever there isa modification or termination of the policy and criteria used for designatinga program of the Administration as a special access program, the Administratorshall promptly notify the congressional defense committees of such modificationor termination. Any such notification shall contain the reasons for themodification or termination and, in the case of a modification, the provisionsof the policy as modified.
(e) WAIVER AUTHORITY-
(1) The Administrator may waive any requirement under subsection (a),(b), or (c) that certain information be included in a report under thatsubsection if the Administrator determines that inclusion of that informationin the report would adversely affect the national security. The Administratormay waive the report-and-wait requirement in subsection (f) if the Administratordetermines that compliance with such requirement would adversely affectthe national security. Any waiver under this paragraph shall be made ona case-by-case basis.
(2) If the Administrator exercises the authority provided under paragraph(1), the Administrator shall provide the information described in thatsubsection with respect to the special access program concerned, and thejustification for the waiver, jointly to the chairman and ranking minoritymember of each of the congressional defense committees.
(f) REPORT AND WAIT FOR INITIATING NEW PROGRAMS- A special access programmay not be initiated until—
(1) the congressional defense committees are notified of the program;and
(2) a period of 30 days elapses after such notification is received.

                                      Subtitle C—Matters Relating to Personnel

SEC. 3241. AUTHORITY TO ESTABLISH CERTAIN SCIENTIFIC, ENGINEERING, ANDTECHNICAL POSITIONS.

The Administrator may, for the purposes of carrying out the responsibilitiesof the Administrator under this title, establish not more than 300 scientific,engineering, and technical positions in the Administration, appoint individualsto such positions, and fix the compensation of such individuals. Subjectto the limitations in the preceding sentence, the authority of the Administratorto make appointments and fix compensation with respect to positions inthe Administration under this section shall be equivalent to, and subjectto the limitations of, the authority under section 161 d. of the AtomicEnergy Act of 1954 (42 U.S.C. 2201(d)) to make appointments and fix compensationwith respect to officers and employees described in such section.

SEC. 3242. VOLUNTARY EARLY RETIREMENT AUTHORITY.

(a) AUTHORITY- An employee of the Department of Energy who is separatedfrom the service under conditions described in subsection (b) after completing25 years of service or after becoming 50 years of age and completing 20years of service is entitled to an annuity in accordance with the provisionsin chapter 83 or 84 of title 5, United States Code, as applicable.
(b) CONDITIONS OF SEPARATION- Subsection (a) applies to an employeewho—
(1) has been employed continuously by the Department of Energy formore than 30 days before the date on which the Secretary of Energy makesthe determination required under paragraph (4)(A);
(2) is serving under an appointment that is not limited by time;
(3) has not received a decision notice of involuntary separation formisconduct or unacceptable performance that is pending decision; and
(4) is separated from the service voluntarily during a period withrespect to which—
(A) the Secretary of Energy determines that the Department of Energyis undergoing a major reorganization as a result of the establishment ofthe National Nuclear Security Administration; and
(B) the employee is within the scope of an offer of voluntary earlyretirement (as defined by organizational unit, occupational series or level,geographical location, any other similar factor that the Office of PersonnelManagement determines appropriate, or any combination of such definitionsof scope), as determined by the Secretary under regulations prescribedby the Office.
(c) TREATMENT OF EMPLOYEES- For purposes of chapters 83 and 84 of title5, United States Code (including for purposes of computation of an annuityunder such chapters), an employee entitled to an annuity under this sectionshall be treated as an employee entitled to an annuity under section 8336(d)or 8414(b) of such title, as applicable.
(d) DEFINITIONS- As used in this section, the terms ‘employee’ and‘annuity’—
(1) with respect to individuals covered by the Civil Service RetirementSystem established in subchapter III of chapter 83 of title 5, United StatesCode, have the meaning of such terms as used in such chapter; and
(2) with respect to individuals covered by the Federal Employees RetirementSystem established in chapter 84 of such title, have the meaning of suchterms as used in such chapter.
(e) LIMITATION AND TERMINATION OF AUTHORITY- The authority providedin subsection (a)--
(1) may be applied with respect to a total of not more than 600 employeesof the Department of Energy; and
(2) shall expire on September 30, 2003.

SEC. 3243. SEVERANCE PAY.

Section 5595 of title 5, United States Code, is amended by adding atthe end the following new subsection:

‘(j)(1) In the case of an employee of the Department of Energy who isentitled to severance pay under this section as a result of the establishmentof the National Nuclear Security Administration, the Secretary of Energymay, upon application by the employee, pay the total amount of the severancepay to the employee in one lump sum.
‘(2)(A) If an employee paid severance pay in a lump sum under thissubsection is reemployed by the Government of the United States or thegovernment of the District of Columbia at such time that, had the employeebeen paid severance pay in regular pay periods under subsection (b), thepayments of such pay would have been discontinued under subsection (d)upon such reemployment, the employee shall repay to the Department of Energyan amount equal to the amount of severance pay to which the employee wasentitled under this section that would not have been paid to the employeeunder subsection (d) by reason of such reemployment.
‘(B) The period of service represented by an amount of severance payrepaid by an employee under subparagraph (A) shall be considered servicefor which severance pay has not been received by the employee under thissection.
‘(C) Amounts repaid to the Department of Energy under this paragraphshall be credited to the appropriation available for the pay of employeesof the agency for the fiscal year in which received. Amounts so creditedshall be merged with, and shall be available for the same purposes andthe same period as, the other funds in that appropriation.
‘(3) If an employee fails to repay to the Department of Energy an amountrequired to be repaid under paragraph (2)(A), that amount is recoverablefrom the employee as a debt due the United States.’.

SEC. 3244. CONTINUED COVERAGE OF HEALTH CARE BENEFITS.

Section 8905a(d)(4)(A) of title 5, United States Code, is amended byinserting ‘, or the Department of Energy due to a reduction in force resultingfrom the establishment of the National Nuclear Security Administration’after ‘reduction in force’.

                                       Subtitle D—Budget and Financial Management

SEC. 3251. SEPARATE TREATMENT IN BUDGET.

(a) PRESIDENT’S BUDGET- In each budget submitted by the President tothe Congress under section 1105 of title 31, United States Code, amountsrequested for the Administration shall be set forth separately within theother amounts requested for the Department of Energy.
(b) BUDGET JUSTIFICATION MATERIALS- In the budget justification materialssubmitted to Congress in support of each such budget, the amounts requestedfor the Administration shall be specified in individual, dedicated programelements.

SEC. 3252. PLANNING, PROGRAMMING, AND BUDGETING PROCESS.

The Administrator shall establish procedures to ensure that the planning,programming, budgeting, and financial activities of the Administrationcomport with sound financial and fiscal management principles. Those proceduresshall, at a minimum, provide for the planning, programming, and budgetingof activities of the Administration using funds that are available forobligation for a limited number of years.

SEC. 3253. FUTURE-YEARS NUCLEAR SECURITY PROGRAM.

(a) SUBMISSION TO CONGRESS- The Administrator shall submit to Congresseach year, at or about the time that the President’s budget is submittedto Congress that year under section 1105(a) of title 31, United StatesCode, a future-years nuclear security program (including associated annexes)reflecting the estimated expenditures and proposed appropriations includedin that budget. Any such future-years nuclear security program shall coverthe fiscal year with respect to which the budget is submitted and at leastthe four succeeding fiscal years.
(b) ELEMENTS- Each future-years nuclear security program shall containthe following:
(1) The estimated expenditures and proposed appropriations necessaryto support the programs, projects, and activities of the Administrationduring the five-fiscal year period covered by the program, expressed ina level of detail comparable to that contained in the budget submittedby the President to Congress under section 1105 of title 31, United StatesCode.
(2) A description of the anticipated workload requirements for eachAdministration site during that five-fiscal year period.
(c) EFFECT OF BUDGET ON STOCKPILE- The Administrator shall includein the materials the Administrator submits to Congress in support of thebudget for any fiscal year that is submitted by the President pursuantto section 1105 of title 31, United States Code, a description of how thefunds identified for each program element in the weapons activities budgetof the Administration for such fiscal year will help ensure that the nuclearweapons stockpile is safe and reliable as determined in accordance withthe criteria established under 3158 of the Strom Thurmond National DefenseAuthorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 2257; 42 U.S.C. 2121 note).
(d) CONSISTENCY IN BUDGETING-
(1) The Administrator shall ensure that amounts described in subparagraph(A) of paragraph (2) for any fiscal year are consistent with amounts describedin subparagraph
(B) of paragraph (2) for that fiscal year.
(2) Amounts referred to in paragraph (1) are the following:
(A) The amounts specified in program and budget information submittedto Congress by the Administrator in support of expenditure estimates andproposed appropriations in the budget submitted to Congress by the Presidentunder section 1105(a) of title 31, United States Code, for any fiscal year,as shown in the future-years nuclear security program submitted pursuantto subsection (a).
(B) The total amounts of estimated expenditures and proposed appropriationsnecessary to support the programs, projects, and activities of the Administrationincluded pursuant to paragraph (5) of section 1105(a) of such title inthe budget submitted to Congress under that section for any fiscal year.
(e) TREATMENT OF MANAGEMENT CONTINGENCIES- Nothing in this sectionshall be construed to prohibit the inclusion in the future-years nuclearsecurity program of amounts for management contingencies, subject to therequirements of subsection (d).

                                         Subtitle E—Miscellaneous Provisions

SEC. 3261. ENVIRONMENTAL PROTECTION, SAFETY, AND HEALTH REQUIREMENTS.

(a) COMPLIANCE REQUIRED- The Administrator shall ensure that the Administrationcomplies with all applicable environmental, safety, and health statutesand substantive requirements.
(b) PROCEDURES REQUIRED- The Administrator shall develop proceduresfor meeting such requirements.
(c) RULE OF CONSTRUCTION- Nothing in this title shall diminish theauthority of the Secretary of Energy to ascertain and ensure that suchcompliance occurs.

SEC. 3262. COMPLIANCE WITH FEDERAL ACQUISITION REGULATION.

The Administrator shall establish procedures to ensure that the missionand programs of the Administration are executed in full compliance withall applicable provisions of the Federal Acquisition Regulation issuedpursuant to the Office of Federal Procurement Policy Act (41 U.S.C. 401et seq.).

SEC. 3263. SHARING OF TECHNOLOGY WITH DEPARTMENT OF DEFENSE.

The Administrator shall, in cooperation with the Secretary of Defense,establish procedures and programs to provide for the sharing of technology,technical capability, and expertise between the Administration and theDepartment of Defense to further national security objectives.

SEC. 3264. USE OF CAPABILITIES OF NATIONAL SECURITY LABORATORIES BYENTITIES OUTSIDE ADMINISTRATION.

The Secretary, in consultation with the Administrator, shall establishappropriate procedures to provide for the use, in a manner consistent withthe national security mission of the Administration under section 3211(b),of the capabilities of the national security laboratories by elements ofthe Department of Energy not within the Administration, other Federal agencies,and other appropriate entities, including the use of those capabilitiesto support efforts to defend against weapons of mass destruction.

                                               Subtitle F—Definitions

SEC. 3281. DEFINITIONS.
For purposes of this title:
(1) The term ‘national security laboratory’ means any of the following:
(A) Los Alamos National Laboratory, Los Alamos, New Mexico.
(B) Sandia National Laboratories, Albuquerque, New Mexico, and Livermore,California.
(C) Lawrence Livermore National Laboratory, Livermore, California.
(2) The term ‘nuclear weapons production facility’ means any of thefollowing:
(A) The Kansas City Plant, Kansas City, Missouri.
(B) The Pantex Plant, Amarillo, Texas.
(C) The Y-12 Plant, Oak Ridge, Tennessee.
(D) The tritium operations facilities at the Savannah River Site, Aiken,South Carolina.
(E) The Nevada Test Site, Nevada.
(F) Any facility of the Department of Energy that the Secretary ofEnergy, in consultation with the Administrator and the Congress, determinesto be consistent with the mission of the Administration.
(3) The term ‘classified information’ means any information that hasbeen determined pursuant to Executive Order No. 12333 of December 4, 1981(50 U.S.C. 401 note), Executive Order No. 12958 of April 17, 1995 (50 U.S.C.435 note), or successor orders, to require protection against unauthorizeddisclosure and that is so designated.
(4) The term ‘Restricted Data’ has the meaning given such term in section11 y. of the Atomic Energy Act of 1954 (42 U.S.C. 2014(y)).
(5) The term ‘congressional defense committees’ means—
(A) the Committee on Armed Services and the Committee on Appropriationsof the Senate; and
(B) the Committee on Armed Services and the Committee on Appropriationsof the House of Representatives.

                                          Subtitle G—Amendatory Provisions, Transition Provisions, and EffectiveDates

SEC. 3291. FUNCTIONS TRANSFERRED.

(a) TRANSFERS- There are hereby transferred to the Administrator allnational security functions and activities performed immediately beforethe date of the enactment of this Act by the following elements of theDepartment of Energy:
(1) The Office of Defense Programs.
(2) The Office of Nonproliferation and National Security.
(3) The Office of Fissile Materials Disposition.
(4) The nuclear weapons production facilities.
(5) The national security laboratories.
(6) The Office of Naval Reactors.
(b) AUTHORITY TO TRANSFER ADDITIONAL FUNCTIONS- The Secretary of Energymaytransfer to the Administrator any other facility, mission, or functionthat the Secretary, in consultation with the Administrator and Congress,determines to be consistent with the mission of the Administration.
(c) ENVIRONMENTAL REMEDIATION AND WASTE MANAGEMENT ACTIVITIES- In thecase of any environmental remediation and waste management activity ofany element specified in subsection (a), the Secretary of Energy may determineto transfer responsibility for that activity to another element of theDepartment.

SEC. 3292. TRANSFER OF FUNDS AND EMPLOYEES.

(a) TRANSFER OF FUNDS-
(1) Any balance of appropriations that the Secretary of Energy determinesis available and needed to finance or discharge a function, power, or dutyor an activity that is transferred to the Administration shall be transferredto the Administration and used for any purpose for which those appropriationswere originally available. Balances of appropriations so transferred shall—
(A) be credited to any applicable appropriation account of the Administration;or
(B) be credited to a new account that may be established on the booksof the Department of the Treasury; and shall be merged with the funds alreadycredited to that account and accounted for as one fund.
(2) Balances of appropriations credited to an account under paragraph(1)(A) are subject only to such limitations as are specifically applicableto that account. Balances of appropriations credited to an account underparagraph (1)(B) are subject only to such limitations as are applicableto the appropriations from which they are transferred.
(b) PERSONNEL-
(1) With respect to any function, power, or duty or activity of theDepartment of Energy that is transferred to the Administration, those employeesof the element of the Department of Energy from which the transfer is madethat the Secretary of Energy determines are needed to perform that function,power, or duty, or for that activity, as the case may be, shall be transferredto the Administration.
(2) The authorized strength in civilian employees of any element ofthe Department of Energy from which employees are transferred under thissection is reduced by the number of employees so transferred.

SEC. 3293. PAY LEVELS.

(a) UNDER SECRETARY FOR NUCLEAR SECURITY- Section 5314 of title 5, UnitedStates Code, is amended by striking ‘Under Secretary, Department of Energy’and inserting ‘Under Secretaries of Energy (2)’.
(b) DEPUTY ADMINISTRATORS- Section 5315 of such title is amended byadding at the end the following new item:
‘Deputy Administrators of the National Nuclear Security Administration(3), but if the Deputy Administrator for Naval Reactors is an officer ofthe Navy on active duty, (2).’.

SEC. 3294. CONFORMING AMENDMENTS.

(a) REDUCTION IN NUMBER OF ASSISTANT SECRETARIES OF ENERGY-
(1) Section 5315 of title 5, United States Code, is amended by striking‘(8)’ after ‘Assistant Secretaries of Energy’ and inserting ‘(6)’.
(2) Subsection (a) of section 203 of the Department of Energy OrganizationAct (42 U.S.C. 7133) is amended in the first sentence by striking ‘eight’and inserting ‘six’.
(b) FUNCTIONS REQUIRED TO BE ASSIGNED TO ASSISTANT SECRETARIES OF ENERGY-Subsection (a) of section 203 of the Department of Energy OrganizationAct (42 U.S.C. 7133) is amended by striking paragraph (5).
(c) OFFICE OF NAVAL REACTORS- Section 309 of the Department of EnergyOrganization Act (42 U.S.C.
7158) is amended—
(1) by striking subsection (b);
(2) by striking ‘(a)’; and
(3) by striking ‘Assistant Secretary to whom the Secretary has assignedthe function listed in section 203(a)(2)(E)’ and inserting ‘Under Secretaryfor Nuclear Security’.
(d) OFFICE OF FISSILE MATERIALS DISPOSITION-
(1) Section 212 of the Department of Energy Organization Act (42 U.S.C.7143) is repealed.
(2) The table of contents at the beginning of such Act is amended bystriking the item relating to section 212.
(e) REPEAL OF RESTATED PROVISION RELATING TO DOE SPECIAL ACCESS PROGRAMS;
CONFORMING AMENDMENT-
(1)(A) Section 93 of the Atomic Energy Act of 1954 (42 U.S.C. 2122a)is
repealed.
(B) The table of contents at the beginning of such Act is amended bystriking the item relating to section 93.
(2) Clause (ii) of section 1152(g)(1)(B) of the National Defense AuthorizationAct for Fiscal Year 1994 (Public
Law 103-160; 50 U.S.C. 435 note) is amended to read as follows:
‘(ii) the National Nuclear Security Administration (which is requiredto submit reports on special
access programs under section 3237 of the National Nuclear SecurityAdministration Act); or’.
(f) REPEAL OF FIVE-YEAR BUDGET REQUIREMENT FOR DOE NATIONAL SECURITYPROGRAMS-
Section 3155 of the National Defense Authorization Act for Fiscal Year1997 (Public Law 104-201; 110 Stat.
2841; 42 U.S.C. 7271b) is repealed.

SEC. 3295. TRANSITION PROVISIONS.

(a) COMPLIANCE WITH FINANCIAL PRINCIPLES-
(1) The Under Secretary of Energy for Nuclear Security shall ensurethat the compliance with sound financial and fiscal management principlesspecified in section 3252 is achieved not later than October 1, 2000.
(2) In carrying out paragraph (1), the Under Secretary of Energy forNuclear Security shall conduct a review and develop a plan to bring applicableactivities of the Administration into full compliance with those principlesnot later than such date.
(3) Not later than January 1, 2000, the Under Secretary of Energy forNuclear Security shall submit to the Committees on Armed Services of theSenate and the House of Representatives a report containing the resultsof that review and a description of that plan.
(b) INITIAL REPORT FOR FUTURE-YEARS NUCLEAR SECURITY PROGRAM- The firstreport under section 3253 shall be submitted in conjunction with the budgetsubmitted for fiscal year 2001.
(c) PROCEDURES FOR COMPUTER ACCESS- The regulations to implement theprocedures under section 3235 shall be prescribed not later than 90 daysafter the effective date of this title.
(d) COMPLIANCE WITH FAR-
(1) The Under Secretary of Energy for Nuclear Security shall ensurethat the compliance with the Federal Acquisition Regulation specified insection 3262 is achieved not later than October 1, 2000.
(2) In carrying out paragraph (1), the Under Secretary of Energy forNuclear Security shall conduct a review and develop a plan to bring applicableactivities of the Administration into full compliance with the FederalAcquisition Regulation not later than such date.
(3) Not later than January 1, 2000, the Under Secretary of Energy forNuclear Security shall submit to the Committees on Armed Services of theSenate and the House of Representatives a report containing the resultsof that review and a description of that plan.

SEC. 3296. APPLICABILITY OF PREEXISTING LAWS AND REGULATIONS.

Unless otherwise provided in this title, all provisions of law and regulationsin effect immediately before the effective date of this title that areapplicable to functions of the Department of Energy specified in section3291 shall continue to apply to the corresponding functions of the Administration.

SEC. 3297. REPORT CONTAINING IMPLEMENTATION PLAN OF SECRETARY OF ENERGY.

Not later than January 1, 2000, the Secretary of Energy shall submitto the Committee on Armed Services of the Senate and the Committee on ArmedServices of the House of Representatives a report containing the Secretary’splan for the implementation of the provisions of this title.

SEC. 3298. CLASSIFICATION IN UNITED STATES CODE.

Subtitles A through F of this title (other than provisions of thosesubtitles amending existing provisions of law) shall be classified to theUnited States Code as a new chapter of title 50, United States Code.

SEC. 3299. EFFECTIVE DATES.

(a) IN GENERAL- Except as provided in subsection (b), the provisionsof this title shall take effect on March 1, 2000.
(b) EXCEPTIONS-
(1) Sections 3202, 3204, 3251, 3295, and 3297 shall take effect onthe date of the enactment of this Act.
(2) Sections 3234 and 3235 shall take effect on the date of the enactmentof this Act. During the period
beginning on the date of the enactment of this Act and ending on theeffective date of this title, the Secretary of
Energy shall carry out those sections and any reference in those sectionsto the Administrator and the
Administration shall be treated as references to the Secretary andthe Department of Energy, respectively.
 

Report language

TITLE XXXII—NATIONAL NUCLEAR SECURITY ADMINISTRATION

The House amendment contained a provision (sec. 3165) that would requirethe Secretary of Energy to assign to the Assistant Secretary of Energyfor Defense Programs direct authority over, and responsibility for, thenuclear weapons production facilities and national laboratories with respectto strategic management, policy development and guidance, budget guidanceand formulation, resource requirements determinations and allocations,administration of contracts, environmental safety and health operations,integrated safety and management, safeguard and security operations, andrelations with government agencies. The provision would also establishthat certain nuclear weapons production facilities, national laboratories,and operations offices report directly to the Assistant Secretary for DefensePrograms. The provision would further allow the Assistant Secretary todelegate to such operations offices a number of support functions, includingoperational activities, program execution, personnel, contracting and procurement,facility operations oversight, and integration of production and researchactivities.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would substantially reorganizethe national security programs of the Department of Energy (DOE).
The conferees note that the Select Committee on U.S. National Securityand Military/Commercial Concerns with the People’s Republic of China (knownas the Cox Committee) concluded that Chinese espionage efforts had successfullygathered sensitive information related to U.S. nuclear weapons designs.The conferees further note that the President’s Foreign Intelligence AdvisoryBoard (PFIAB), chaired by former Senator Warren Rudman, after reviewingthe security failures at DOE concluded that the root causes of the counterintelligencefailures pertained to poor organization and a failure of accountability.The PFIAB noted that many previous efforts to improve organization andaccountability at DOE had failed, and concluded that ‘. . . the Departmentof Energy is a dysfunctional bureaucracy that has proven incapable of reformingitself.’ To correct these systemic problems, the conferees agree to establishthe National Nuclear Security Administration (NNSA), a semi-autonomousagency within the Department that would be responsible for nuclear weaponsdevelopment, naval nuclear propulsion, defense nuclear nonproliferation,and fissile material disposition; establish security, counterintelligence,and intelligence offices; and prescribe personnel, budgeting, and othermanagement practices for the NNSA.

Short title (sec. 3201)

The conferees agree to include a provision that would provide that thistitle may be cited as the ‘National Nuclear Security Administration Act.’Under Secretary for Nuclear Security of Department of Energy (sec. 3202)The conferees agree to include a provision that would amend the Departmentof Energy Organization Act (42 U.S.C. 7132) to establish in the Departmentof Energy an Under Secretary for Nuclear Security appointed by the Presidentwith the advice and consent of the Senate. The Under Secretary would serveas the Administrator for Nuclear Security under the National Nuclear SecurityAdministration Act. As Administrator, the Under Secretary would be subjectto the authority, direction, and control of the Secretary of Energy. Suchauthority, direction, and control could only be delegated to the DeputySecretary of energy.

Establishment of policy for National Nuclear Security Administration(sec. 3203)

The conferees agree to include a provision that would provide that theSecretary of Energy, acting through the Under Secretary of Nuclear Security,shall be responsible for establishing policy for the National Nuclear SecurityAdministration. The Secretary could direct officials of the Departmentof Energy who are not within the National Nuclear Security Administrationto review programs and activities of the Administration and to make recommendationsto the Secretary regarding administration of those programs.

Organization of Department of Energy counterintelligence and intelligenceprograms and activities (sec. 3204)

The conferees agree to include a provision that would amend the Departmentof Energy Organization Act (42 U.S.C. 7101) to specify that the Secretaryof Energy shall be  responsible for developing, and promulgating thesecurity, counterintelligence, and intelligence policies of the Departmentof Energy. This provision would also establish the Department of Energyoffices of Counterintelligence and Intelligence. The Director of the Departmentof Energy Office of Counterintelligence would be a member of the SeniorExecutive Service and would be responsible for establishing policy forcounterintelligence programs and activities at Department of Energy facilitiesin order to reduce the threat of disclosure of classified and other sensitiveinformation at the Department facilities. The provision would also requirethe Director of the Office of Counterintelligence to report on the statusand the effectiveness of the counterintelligence programs at facilitiesof the Department of Energy during the preceding year.  The Directorof the Office of Intelligence of the Department of Energy would be a memberof the Senior Executive Service and would be responsible for the programsand activities of the Department relating to the analysis of intelligencewith respect to nuclear weapons and materials and energy security.

SUBTITLE A—ESTABLISHMENT AND ORGANIZATION

Establishment and mission (sec. 3211)

The conferees agree to include a provision that would establish withinthe Department of Energy a separately organized agency that would be knownas the National Nuclear Security Administration. The mission of the Administrationwould be to enhance the national security through the military applicationof nuclear energy and to reduce global danger from weapons of mass destruction,and to promote international nuclear safety. This provision would requirethat the Administrator ensure that all operations and activities of theAdministration are consistent with the principles of environmental protectionand the safety and health of the public and the Administration’s workforce.

Administrator for Nuclear Security (sec. 3212)

The conferees agree to include a provision that would establish theUnder Secretary for Nuclear Security as the Administrator for the NationalNuclear Security Administration. The Administrator would have authorityover, and be responsible for, all programs and activities of the Administration,except for the functions of the Office of Naval Reactors as specified inExecutive Order 12344. In addition, the provision would give the Administratorresponsibility for liaison between the Administration and other elementsof the Department of Energy and other federal agencies. The Administratormay establish Administration-specific policies, unless disapproved by theSecretary.

Status of Administration and contractor personnel within Departmentof Energy (sec. 3213)

The conferees agree to include a provision that would make each officeror employee of the Administration, in carrying out the functions of theAdministration, subject to the authority, direction, and control of theAdministrator, the Secretary of Energy acting through the Administrator,or the Administrator’s designee within the Administration. Officers oremployees of the Administration would not be responsible to, or subjectto the authority, direction, or control of any other officer, agent, oremployee of the Department of Energy. The provision would also stipulatethat each officer or employee of a contractor of the Administration wouldnot be responsible to, or subject to the authority, direction, or controlof any other officer, agent, or employee of the Department of Energy whois not an employee of the Administration, with the exception of the Secretaryor Deputy Secretary of Energy.

Deputy Administrator for Defense Programs (sec. 3214)

The conferees agree to include a provision that would establish theposition of Deputy Administrator for Defense Programs, subject to appointmentby the President with the advice and consent of the Senate. The provisionwould make the Deputy Administrator responsible for maintaining and enhancingthe safety, reliability, and performance of the U.S. nuclear weapons stockpile.The head of each national security laboratory and nuclear weapons productionfacility would report to the Deputy Administrator for Defense Programs,consistent with applicable contractual obligations.

Deputy Administrator for Defense Nuclear Nonproliferation (sec. 3215)

The conferees agree to include a provision that would establish theposition of Deputy Administrator for Defense Nuclear Nonproliferation subjectto appointment by the President with the advice and consent of the Senate.The provision would make the Deputy Administrator responsible for preventingthe spread of materials, technology, and expertise relating to weaponsof mass destruction; and for eliminating inventories of surplus fissilematerial.

Deputy Administrator for Naval Reactors (sec. 3216)

The conferees agree to include a provision that would establish theposition of Deputy Administrator for Naval Reactors. The director of theNaval Nuclear Propulsion Program, provided for under the Naval NuclearPropulsion Executive Order, shall serve as the Deputy Administrator forNaval Reactors. The provision would assign the Deputy Administrator theresponsibilities, authorities, and accountability for all functions ofthe Office of Naval Reactors.

General Counsel (sec. 3217)

The conferees agree to include a provision that would establish a GeneralCounsel for the Administration.

Staff of Administration (sec. 3218)

The conferees agree to include a provision that would require the Administratorto maintain within the Administration sufficient staff to assist the Administratorin carrying out the duties of that position. The Administrator would assignto the staff responsibility for the functions of personnel, legislativeaffairs, public affairs, and liaison with other elements of the Departmentof Energy, other federal agencies, and the public.

SUBTITLE B—MATTERS RELATING TO SECURITY

Protection of national security information (sec. 3231)

The conferees agree to include a provision that would require the Administrator,subject to the approval of the Secretary of Energy, to establish policiesand procedures to ensure maximum protection to classified information inthe possession of the Administration. The Administrator would establishprocedures requiring personnel of the Administration to report to the Administratoron significant violations of law or executive order relating to the managementof classified information.

Office of Defense Nuclear Counterintelligence and Office of DefenseNuclear Security (sec. 3232)

The Senate bill contained a provision (sec. 3158) that would requirethe Secretary of Energy to maintain an Office of
Counterintelligence and an Office of Intelligence. The Office of Counterintelligencewould be headed by a senior executive of the Federal Bureau of Investigationwith experience in matters relating to counterintelligence. The Directorof the Office of Counterintelligence would report directly to the Secretaryof Energy and ensure that the Secretary, the Director of Central Intelligence,and the Director of the Federal Bureau of Investigation are informed regularlyon the status and effectiveness of counterintelligence efforts at DOE sites.The Director would be required to submit an annual assessment to the Secretary,Director of Central Intelligence, Director of the Federal Bureau of Investigation,and the defense committees of Congress on the effectiveness of counterintelligenceefforts at DOE facilities. Such an assessment would be provided in bothclassified and unclassified form not later than March 1 of each year. TheDirector would be required to develop and implement specific security andcounterintelligence programs to reduce the threat of loss of classifiedand sensitive information at DOE sites. The Director of Intelligence wouldalso report directly to the Secretary and would be responsible for intelligenceand energy security analysis.
The House amendment contained a similar provision (sec. 3184) thatwould require the Secretary of Energy to establish an Office of ForeignIntelligence and an Office of Counterintelligence.
The conferees agree to include a provision that would establish anOffice of Defense Nuclear Counterintelligence and an Office of DefenseNuclear Security. The offices would be headed by a Chief of Defense NuclearCounterintelligence and a Chief of Defense Nuclear Security. The Chiefof Defense Nuclear Counterintelligence would report to the Administratorand would implement counterintelligence policies directed by the Secretaryand the Administrator. This Chief would develop programs for the Administrationto prevent the disclosure of classified or sensitive information, and woulddevelop and administer personnel assurance programs within the Administration.The Chief of Defense Nuclear Security would report to the Administratorand would implement security policies directed by the Secretary and theAdministrator. This Chief would be responsible for the development andimplementation of security programs for the Administration including theprotection, control, and accounting of nuclear materials and the physicalsecurity and cybersecurity for all facilities of the Administration.

Counterintelligence programs (sec. 3233)

The Senate bill contained a provision (sec. 3159) that would requirethe Secretary of Energy to assign at each DOE facility an individual toassess security and counterintelligence matters at that site. Such individualswould report directly to the DOE Director of Counterintelligence.
The House amendment contained a similar provision (sec. 3186) thatwould require the Secretary of Energy to assign at each DOE facility anindividual to assess security and counterintelligence matters at that site.Such individuals would report directly to the DOE Director of Counterintelligence.
The House amendment contained another similar provision (sec. 3185)that would require the Secretary to establish and maintain at each DOEnational laboratory, a counterintelligence program for the defense-relatedactivities at the laboratory. The provision would require that the headof counterintelligence at each laboratory have extensive experience incounterintelligence activities within the Federal Government and is hiredby and directly responsible to Director of the laboratory and is hiredwith the concurrence of the DOE Director of Counterintelligence.
The conferees agree to include a provision that would require the Administratorto establish and maintain a counterintelligence program at each laboratoryor production facility. The Administrator would be required to assign anemployee of the Office of Defense Nuclear Counterintelligence to each facilityat which Restricted Data is located, other than a laboratory or a productionfacilities. This employee would assess counterintelligence and securitymatters at the facility.

Procedures relating to access by individuals to classified areas andinformation of Administration (sec. 3234)

The House amendment contained a provision (sec. 3191) that would prohibitunescorted access by a foreign national to any classified area, or accessto any classified information, at any DOE facility engaged in defense activitiesunless the individual has a security clearance granted by the United Statesor has a security clearance granted by a foreign government which the Secretaryof State determines is comparable to a clearance granted by the UnitedStates. The provision would prohibit the Secretary from terminating theemployment of any foreign national who is also an employee of the Department,as of the date of enactment of this Act until a security clearance investigationis completed. Such employees could, however, be terminated if the Directorof Counterintelligence determines it is in the national security interestof the United States.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would require the Administratorto establish procedures to ensure that individuals are not permitted unescortedaccess to any classified area, or access to classified information, ofthe Administration until security clearances are verified.

Government access to information on Administration computers (sec. 3235)

The House amendment contained a provision (sec. 3194) that would requirethe Secretary of Energy to establish procedures to govern access to classifiedinformation on DOE defense-related computer systems.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would require the Administratorto establish procedures to govern access to all information on Administrationcomputers. These procedures would provide that any individual who has accessto information on an Administration computer be required, as a conditionof such access, to provide to the Administrator written consent permittingaccess by an authorized investigative agency to any Administration computer.In addition, the provision would stipulate that, notwithstanding any otherprovision of law, no user of an Administration computer shall have anyexpectation of privacy in the use of that computer.

Congressional oversight of special access programs (sec. 3236)

The conferees agree to include a provision that would require the Administratorto submit an annual report to the congressional defense committees on thespecial access programs of the Administration. Each annual report shallcontain budgetary information for special access programs and a brief discussionof each program. This provision would also require an annual report onthe new special access programs with a justification for designating theprogram as special access, and an identification of existing programs ortechnologies that are similar to the subject of the new special accessprogram. A new special access program would not be allowed to begin until30 days after the defense committees have been notified that a new specialaccess program is about to be initiated. The provision would also requirea report to the congressional defense committees 14 days before any specialaccess program is declassified.

SUBTITLE C—MATTERS RELATING TO PERSONNEL

Authority to establish certain scientific, engineering, and technicalpositions (sec. 3241)

The conferees agree to include a provision that would provide the Administratorof the National Nuclear Security Administration authority to establishup to 300 scientific, engineering, and technical positions, hire qualifiedpersonnel to fill those positions, and set appropriate compensation levels.

Voluntary early retirement authority (sec. 3242)

The conferees agree to include a provision that would provide the Secretaryof Energy temporary authority to offer voluntary early retirement to notmore than 600 Department of Energy employees affected by the establishmentof the National Nuclear Security Administration.

Severance pay (sec. 3243)

The conferees agree to include a provision that would provide the Secretaryof Energy authority to pay severance pay in one lump sum to those Departmentof Energy employees entitled to severance pay as a result of the establishmentof the National Nuclear Security Administration.

Continued coverage of health care benefits (sec. 3244)

The conferees agree to include a provision that would provide the Secretaryof Energy authority to continue to pay the government’s share of healthinsurance premiums to those Department of Energy employees who are involuntarilyseparated as a result of the establishment of the National Nuclear SecurityAdministration.

SUBTITLE D—BUDGET AND FINANCIAL MANAGEMENT

Separate treatment in budget (sec. 3251)

The conferees agree to include a provision that would require the Presidentto submit the budget for the NNSA separately within the amounts requestedfor the Department of Energy. The section would also require that the budgetjustification materials submitted to Congress in support of the budgetbe specified in individual program elements.

Planning, programming, and budgeting process (sec. 3252)

The conferees agree to include a provision that would require the Administratorto establish a sound planning, programming, and budgeting process for theactivities of the Administration using funds that are available for obligationfor a limited number of years.

Future-years nuclear security program (sec. 3253)

The Senate bill contained a provision (sec. 3172) that would amend section3155(a) of the National Defense Authorization Act for Fiscal Year 1997(Public Law 104-201) to require that the Secretary of Energy, beginningin fiscal year 2001, include in the President’s annual budget request toCongress, a five-year program and budget plan for the activities anticipatedto be carried out by the national security programs of the Department ofEnergy. The program and budget plan would be submitted at the same levelof detail as the President’s annual budget request to Congress and wouldinclude a description of anticipated workload requirements for each site.The provision would further require the Secretary of Energy, beginningin fiscal year 2001, to identify how each element of the President’s budgetrequest for weapons activities would help ensure that the weapons stockpileis safe and reliable as determined in accordance with the performance criteriaestablished pursuant to section 3158 of the Strom Thurmond National DefenseAuthorization Act for Fiscal Year 1999 (Public Law 105-261) during eachyear of the five year period.
The House amendment contained no similar provision.
The House recedes with an amendment that would require the Administratorto submit a future-year nuclear security program that would contain theestimated expenditures necessary to support the programs, projects, andactivities of the Administration for a five-year period and the anticipatedworkload requirements for each Administration site during the period ofthe plan. It would also require that the Administrator submit materialsdetailing how the funds identified for each program element in the weaponsactivities budget will help ensure the reliability and safety of the nuclearweapons stockpile.
The conferees note that the Secretary of Energy was required by law(section 3135 of H.R. 3230, the National Defense Authorization Act forFiscal Year 1997, Public Law 104-201) to provide a five-year budget plan,but that the Secretary has not complied with this provision. The confereesbelieve that such a plan will provide an important planning tool for theAdministration and a baseline on which the congressional defense committeescan better evaluate succeeding budget submissions.

SUBTITLE E—MISCELLANEOUS PROVISIONS

Environmental protection, safety, and health requirements (sec. 3261)

The conferees agree to include a provision that would require the Administratorto ensure that Administration operations comply with applicable environmental,safety, and health statutes and to develop procedures for meeting suchrequirements. The provision would also provide that the Secretary of Energycontinues to have overall authority and oversight responsibility to ensurethat such compliance occurs.

Compliance with federal acquisition regulation (sec. 3262)

The conferees agree to include a provision that would require the Administratorto establish procedures that would ensure that Administration activitiesare operated in full compliance with the Federal Acquisition Regulation.

Sharing of technology with Department of Defense (sec. 3263)

The conferees agree to include a provision that would require the Administrator,in cooperation with the Secretary of Defense, to establish procedures thatwould allow for the sharing of technology and expertise between the Administrationand the Department of Defense.

Use of capabilities of national security laboratories by entities outsideadministration (sec. 3264)

The conferees agree to include a provision that would require the Administratorto establish procedures that would, consistent with the national securitymission of the Administration, make the capabilities of the national securitylaboratories available to elements of the Department of Energy that arenot part of the Administration, other Federal agencies and other entities.

SUBTITLE F—DEFINITIONS

Definitions (sec. 3281)

The conferees agree to include a provision that would define terms usedthroughout this title.

SUBTITLE G—AMENDATORY PROVISIONS, TRANSITION PROVISIONS, AND EFFECTIVE
DATES

Functions transferred (sec. 3291)

The conferees agree to include a provision that would transfer the nationalsecurity functions of the Department of Energy to the Administration uponenactment of this title, but would permit the Secretary of Energy to transferenvironmental and waste management activities to other elements of theDepartment, in consultation with the Administrator and Congress.

Transfer of funds and employees (sec. 3292)

The conferees agree to include a provision that would require the Secretaryof Energy to transfer to the Administration the balance of funding associatedwith the functions transferred to the Administration, as well as the employeesnecessary to carry out those functions.

Pay levels (sec. 3293)

The conferees agree to include a provision that would establish thecompensation for the Under Secretary for Nuclear Security at executivelevel III and would establish the compensation for Deputy Administratorsof the Administration at executive level IV.

Conforming amendments (sec. 3294)

The conferees agree to include a provision (sec. 3294) that would makeconforming changes to the Atomic Energy Act of 1954, the Department ofEnergy Organization Act, the National Defense Authorization Act for FiscalYear 1994 (Public Law 103-60), and the National Defense Authorization Actfor Fiscal Year 1997 (Public Law 104-201).

Transition provisions (sec. 3295)

The conferees agree to include a provision that would set dates by whichthe Administration would have to come into compliance with the provisionsof title 32 of this Act. The Administrator would be required: to complywith the financial and fiscal management principles specified in section3252 by October 1, 2000, and to report to the Armed Services Committeesof the House and the Senate by January 1, 2000 on a plan to achieve thatcompliance; to submit the first future year nuclear security program requiredin section 3253 with the fiscal year 2001 budget; and to comply with theFederal Acquisition Regulation specified in section 3263 by October 1,2000 and report to the Armed Services Committees of the House and the Senateby January 1, 2000 on a plan to achieve that compliance.

Applicability of pre-existing laws and regulations (sec. 3296)

The conferees agree to include a provision that would establish thatall provisions of law and regulations in effect immediately before theeffective date of title 32 of this act remain in force unless otherwisespecified.

Report containing implementation plan of Secretary of Energy (sec. 3297)

The conferees agree to include a provision that would require the Secretaryto submit to the Committees on Armed Services of the Senate and House ofRepresentatives a report containing the Secretary’s plan for the implementationof the provisions of this title.

Classification in United States Code (sec. 3298)

The conferees agree to include a provision that would establish a newchapter of title 50 for the provisions of title 32 of this act.

Effective dates (sec. 3299)

The conferees agree to include a provision that would establish March1, 2000 as the effective date of the provisions of title 32, except forsections 3202, 3204, 3251, 3295, and 3297, which would become effectiveupon the date of enactment of this Act.
The conferees direct that the implementation of this title begin immediatelyupon enactment so as to ensure that the period between enactment of thisAct and the effective date of this title shall serve as a transition periodto achieve full compliance of the requirements of this title no later thanMarch 1, 2000.