Division C — Department of Energy National Security Authorizations and Other Authorizations

114th Congress · Approved Nov 25, 2015 · 129 Stat. 726

DIVISION C Department of Energy National Security Authorizations and Other Authorizations

TITLE XXXI Department of Energy National Security Programs

Subtitle A National Security Programs Authorizations

SEC. 3101. National Nuclear Security Administration.

(a)

Authorization of Appropriations.— Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 2016 for the activities of the National Nuclear Security Administration in carrying out programs as specified in the funding table in section 4701.

(b)

Authorization of New Plant Projects.— From funds referred to in subsection (a) that are available for carrying out plant projects, the Secretary of Energy may carry out the following new plant project for the National Nuclear Security Administration: Project 16–D–621, Substation Replacement at Technical Area 3, Los Alamos National Laboratory, Los Alamos, New Mexico, $25,000,000.

SEC. 3102. Defense Environmental Cleanup.

Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 2016 for defense environmental cleanup activities in carrying out programs as specified in the funding table in section 4701.

SEC. 3103. Other Defense Activities.

Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 2016 for other defense activities in carrying out programs as specified in the funding table in section 4701.

SEC. 3104. Nuclear Energy.

Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 2016 for nuclear energy as specified in the funding table in section 4701.

Subtitle B Program Authorizations, Restrictions, and Limitations

SEC. 3111. Improvement to Accountability of Department of Energy Employees and Projects.

(a)

Notifications.—

(1)

In general.— Subtitle C of the National Nuclear Security Administration Act (50 U.S.C. 2441 et seq.) is amended by adding at the end the following new section:

“SEC. 3245. NOTIFICATION OF EMPLOYEE PRACTICES AFFECTING NATIONAL SECURITY.

“(a) Annual Notification.—At or about the time that the President’s budget is submitted to Congress under section 1105(a) of title 31, United States Code, the Secretary of Energy and the Administrator shall jointly notify the appropriate congressional committees of—

“(1) the number of covered employees whose security clearance was revoked during the year prior to the year in which the notification is made; and

“(2) for each employee counted under paragraph (1), the length of time such employee has been employed at the Department or the Administration, as the case may be, since such revocation.

“(b) Notification to Congressional Committees.—Whenever the Secretary or the Administrator terminates the employment of a covered employee or removes and reassigns a covered employee for cause, the Secretary or the Administrator, as the case may be, shall notify the appropriate congressional committees of such termination or reassignment by not later than 30 days after the date of such termination or reassignment.

“(c) Definitions.—In this section:

“(1) The term ‘appropriate congressional committees’ means—

“(A) the congressional defense committees; and

“(B) the Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate.

“(2) The term ‘covered employee’ means—

“(A) an employee of the Administration; or

“(B) an employee of an element of the Department of Energy (other than the Administration) involved in nuclear security.”

(2)

Clerical amendment.— The table of contents for such Act is amended by inserting after the item relating to section 3244 the following new item:

“Sec. 3245. Notification of employee practices affecting national security.”.

(3)

One-time certification.— Not later than 30 days after the date of the enactment of this Act, the Secretary of Energy and the Administrator for Nuclear Security shall jointly submit to the congressional defense committees, the Committee on Energy and Commerce of the House of Representatives, and the Committee on Energy and Natural Resources of the Senate written certification that the Secretary and the Administrator possess the authorities needed to terminate the employment of an employee for cause relating to improper program management, as described in section 3246(a) of the National Nuclear Security Administration Act (as added by subsection (b)(1)).

(b)

Limitation on Bonuses.—

(1)

In general.— Such subtitle, as amended by subsection (a)(1), is further amended by adding at the end the following:

“SEC. 3246. LIMITATION ON BONUSES FOR EMPLOYEES WHO ENGAGE IN IMPROPER PROGRAM MANAGEMENT.

“(a) Limitation.—

“(1) In general.—The Secretary of Energy or the Administrator may not pay to a covered employee a bonus during the one-year period beginning on the date on which the Secretary or the Administrator, as the case may be, determines that the covered employee engaged in improper program management that resulted in a notification under section 4713 of the Atomic Energy Defense Act (50 U.S.C. 2753) or significantly and detrimentally affected the cost, scope, or schedule associated with the approval of critical decision 3 in the acquisition process for a project (as defined in Department of Energy Order 413.3B (relating to program management and project management for the acquisition of capital assets)).

“(2) Implementation guidance.—Not later than one year after the date of the enactment of this section, the Secretary shall issue guidance for the implementation of paragraph (1).

“(b) Guidance Prohibiting Bonuses for Additional Employees.—Not later than 180 days after the date of the enactment of this section, the Secretary and the Administrator shall each issue guidance prohibiting the payment of a bonus to a covered employee during the one-year period beginning on the date on which the Secretary or the Administrator, as the case may be, determines that the covered employee engaged in improper program management—

“(1) that jeopardized the health, safety, or security of employees or facilities of the Administration or another element of the Department of Energy involved in nuclear security; or

“(2) in carrying out defense nuclear nonproliferation activities.

“(c) Waiver.—The Secretary or the Administrator, as the case may be, may waive the limitation on the payment of a bonus under subsection (a) or (b) on a case-by-case basis if—

“(1) the Secretary or the Administrator, as the case may be, notifies the appropriate congressional committees of such waiver; and

“(2) a period of 60 days elapses following such notification.

“(d) Definitions.—In this section:

“(1) The term ‘appropriate congressional committees’ means—

“(A) the congressional defense committees; and

“(B) the Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate.

“(2) The term ‘bonus’ means a bonus or award paid under title 5, United States Code, including under chapters 45 or 53 of such title, or any other provision of law.

“(3) The term ‘covered employee’ has the meaning given that term in section 3245.”

(2)

Clerical amendment.— The table of contents for such Act, as amended by subsection (a)(2), is further amended by inserting after the item relating to section 3245 the following new item:

“Sec. 3246. Limitation on bonuses for employees who engage in improper program management.”.

(c)

Treatment of Contactor Employees.—

(1)

In general.— Such subtitle, as amended by subsections (a)(1) and (b)(1), is further amended by adding at the end the following:

“SEC. 3247. TREATMENT OF CONTRACTORS WHO ENGAGE IN IMPROPER PROGRAM MANAGEMENT.

“(a) In General.—Except as provided by subsection (b), if the Secretary of Energy or the Administrator determines that a covered contractor engaged in improper program management that resulted in a notification under section 4713 of the Atomic Energy Defense Act (50 U.S.C. 2753) or significantly and detrimentally affected the cost, scope, or schedule associated with the approval of critical decision 3 in the acquisition process for a project (as defined in Department of Energy Order 413.3B (relating to program management and project management for the acquisition of capital assets)), the Secretary or the Administrator, as the case may be, shall submit to the appropriate congressional committees—

“(1) an explanation as to whether termination of the contract is an appropriate remedy;

“(2) a description of the terms of the contract regarding award fees and performance; and

“(3) a description of how the Secretary or the Administrator, as the case may be, plans to exercise options under the contract.

“(b) Exception.—If the Secretary or the Administrator, as the case may be, is not able to submit the information described in paragraphs (1) through (3) of subsection (a) by reason of a contract enforcement action, the Secretary or the Administrator, as the case may be, shall submit to the appropriate congressional committees a notification of such contract enforcement action and the date on which the Secretary or the Administrator, as the case may be, plans to submit the information described in such paragraphs.

“(c) Definitions.—In this section:

“(1) The term ‘appropriate congressional committees’ means—

“(A) the congressional defense committees; and

“(B) the Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate.

“(2) The term ‘covered contractor’ means—

“(A) a contractor of the Administration; or

“(B) a contractor of an element of the Department of Energy (other than the Administration) involved in nuclear security.”

(2)

Clerical amendment.— The table of contents for such Act, as amended by subsections (a)(2) and (b)(2), is further amended by inserting after the item relating to section 3246 the following new item:

“Sec. 3247. Treatment of contractors who engage in improper program management.”.

SEC. 3112. Stockpile Responsiveness Program.

(a)

Sense of Congress.— It is the sense of Congress that—

(1)

a modern and responsive nuclear weapons infrastructure is only one component of a nuclear posture that is agile, flexible, and responsive to change; and

(2)

to ensure the nuclear deterrent of the United States remains safe, secure, reliable, credible, and responsive, the United States must continually exercise all capabilities required to conceptualize, study, design, develop, engineer, certify, produce, and deploy nuclear weapons.

(b)

Establishment of Program.—

(1)

In general.— Subtitle A of title XLII of the Atomic Energy Defense Act (50 U.S.C. 2521 et seq.) is amended by adding at the end the following new section:

“SEC. 4220. STOCKPILE RESPONSIVENESS PROGRAM.

“(a) Statement of Policy.—It is the policy of the United States to identify, sustain, enhance, integrate, and continually exercise all capabilities required to conceptualize, study, design, develop, engineer, certify, produce, and deploy nuclear weapons to ensure the nuclear deterrent of the United States remains safe, secure, reliable, credible, and responsive.

“(b) Program Required.—The Secretary of Energy, acting through the Administrator and in consultation with the Secretary of Defense, shall carry out a stockpile responsiveness program, along with the stockpile stewardship program under section 4201 and the stockpile management program under section 4204, to identify, sustain, enhance, integrate, and continually exercise all capabilities required to conceptualize, study, design, develop, engineer, certify, produce, and deploy nuclear weapons.

“(c) Objectives.—The program under subsection (b) shall have the following objectives:

“(1) Identify, sustain, enhance, integrate, and continually exercise all of the capabilities, infrastructure, tools, and technologies across the science, engineering, design, certification, and manufacturing cycle required to carry out all phases of the joint nuclear weapons life cycle process, with respect to both the nuclear security enterprise and relevant elements of the Department of Defense.

“(2) Identify, enhance, and transfer knowledge, skills, and direct experience with respect to all phases of the joint nuclear weapons life cycle process from one generation of nuclear weapon designers and engineers to the following generation.

“(3) Periodically demonstrate stockpile responsiveness throughout the range of capabilities required, including prototypes, flight testing, and development of plans for certification without the need for nuclear explosive testing.

“(4) Shorten design, certification, and manufacturing cycles and timelines to minimize the amount of time and costs leading to an engineering prototype and production.

“(5) Continually exercise processes for the integration and coordination of all relevant elements and processes of the Administration and the Department of Defense required to ensure stockpile responsiveness.

“(d) Joint Nuclear Weapons Life Cycle Process Defined.—In this section, the term ‘joint nuclear weapons life cycle process’ means the process developed and maintained by the Secretary of Defense and the Secretary of Energy for the development, production, maintenance, and retirement of nuclear weapons.”

(2)

Clerical amendment.— The table of contents for such Act is amended by inserting after the item relating to section 4219 the following new item:

“Sec. 4220. Stockpile responsiveness program.”.

(c)

Inclusion in Stockpile Stewardship, Management, and Infrastructure Plan.—

(1)

In general.— Section 4203 of such Act (50 U.S.C. 2523) is amended—

(A)

in the section heading, by striking “ infrastructure” and inserting “ responsiveness”;

(B)

in subsection (a), by inserting “ stockpile responsiveness,” after “ stockpile management,”;

(C)

in subsection (c)—

(i)

by redesignating paragraphs (5) and (6) as paragraphs (6) and (7), respectively; and

(ii)

by inserting after paragraph (4) the following new paragraph (5):

“(5) A summary of the status, plans, and budgets for carrying out the stockpile responsiveness program under section 4220.”

(D)

in subsection (d)(1)—

(i)

in the matter preceding subparagraph (A), by striking “ stewardship and management” and inserting “ stewardship, stockpile management, and stockpile responsiveness”;

(ii)

in subparagraph (K), by striking “ ; and” and inserting a semicolon;

(iii)

in subparagraph (L), by striking the period and inserting a semicolon; and

(iv)

by adding at the end the following new subparagraphs:

“(M) the status, plans, activities, budgets, and schedules for carrying out the stockpile responsiveness program under section 4220; and

“(N) for each of the five fiscal years following the fiscal year in which the report is submitted, an identification of the funds needed to carry out the program required under section 4220.”

; and

(E)

in subsection (e)(1)(A)—

(i)

in clause (i), by striking “ ; and” and inserting a semicolon;

(ii)

in clause (ii), by striking the period and inserting “ ; and”; and

(iii)

by adding at the end the following new clause:

“(iii) whether the plan supports the stockpile responsiveness program under section 4220 in a manner that meets the objectives of such program and an identification of any improvements that may be made to the plan to better carry out such program.”

(2)

Clerical amendment.— The table of contents for such Act is amended by striking the item relating to section 4203 and inserting the following new item:

“Sec. 4203. Nuclear weapons stockpile stewardship, management, and responsiveness plan.”.

(d)

Report by STRATCOM.— Section 4205(e)(4) of such Act (50 U.S.C. 2525(e)(4)) is amended—

(1)

in subparagraph (A), by striking “ ; and” and inserting a semicolon;

(2)

in subparagraph (B), by striking the period and inserting “ ; and”; and

(3)

by adding at the end the following new subparagraph:

“(C) the views of the Commander on the stockpile responsiveness program under section 4220, the activities conducted under such program, and any suggestions to improve such program.”

SEC. 3113. Notification of Cost Overruns and Selected Acquisition Reports for Major Alteration Projects.

(a)

Notification of Cost Overruns.—

(1)

In general.— Section 4713(a) of the Atomic Energy Defense Act (50 U.S.C. 2753(a)) is amended—

(A)

by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and

(B)

by inserting after paragraph (1) the following new paragraph (2):

“(2) Major alteration projects.—

“(A) In general.—The Administrator shall establish a cost and schedule baseline for each major alteration project.

“(B) Per unit cost.—The cost baseline developed under subparagraph (A) shall include, with respect to each major alteration project, an estimated cost for each warhead in the project.

“(C) Notification to congressional defense committees.—Not later than 30 days after establishing a cost and schedule baseline under subparagraph (A), the Administrator shall submit the cost and schedule baseline to the congressional defense committees.

“(D) Major alteration project defined.—In this paragraph, the term ‘major alteration project’ means a nuclear weapon system alteration project of the Administration the cost of which exceeds $750,000,000.”

(2)

Conforming amendments.— Section 4713 of such Act is further amended—

(A)

in subsection (b)—

(i)

in paragraph (1), by striking “ or (3)” and inserting “ (3), or (4)”; and

(ii)

in paragraph (2)—

(I)

by inserting “ or a major alteration project referred to in subsection (a)(2)” after “ subsection (a)(1)”; and

(II)

by inserting “ or (a)(2)(B), as applicable,”; and

(B)

in subsection (c)(2)(A), by inserting “ or a major alteration project referred to in subsection (a)(2)” after “ subsection (a)(1)”.

(b)

Inclusion of Major Alteration Projects in Selected Acquisition Reports and Independent Cost Estimates.—

(1)

In general.— Section 4217 of such Act (50 U.S.C. 2537) is amended—

(A)

in subsection (a)(1), by inserting “ or a major alteration project (as defined in section 4713(a)(2))” after “ life extension”; and

(B)

in subsection (b)(1)(A), by adding at the end the following new clause:

“(iv) Each nuclear weapons system undergoing a major alteration project (as defined in section 4713(a)(2)).”

(2)

Conforming amendments.—

(A)

The section heading for section 4217 of such Act is amended by striking “ life extension programs and new nuclear facilities” and inserting “ certain programs and facilities”.

(B)

The table of contents for such Act is amended by striking the item relating to section 4217 and inserting the following new item:

“Sec. 4217. Selected Acquisition Reports and independent cost estimates and reviews of certain programs and facilities.”.

SEC. 3114. Root Cause Analyses for Certain Cost Overruns.

Section 4713(c) of the Atomic Energy Defense Act (50 U.S.C. 2753(c)), as amended by section 3113, is further amended—

(1)

in the subsection heading, by inserting “ and Root Cause Analyses” after “ Projects”;

(2)

in paragraph (1), by striking “ and”;

(3)

in paragraph (2)(C), by striking the period at the end and inserting “ ; and”; and

(4)

by adding at the end the following paragraph:

“(3) submit to the congressional defense committees an assessment of the root cause or causes of the growth in the total cost of the project, including the contribution of any shortcomings in cost, schedule, or performance of the program, including the role, if any, of—

“(A) unrealistic performance expectations;

“(B) unrealistic baseline estimates for cost or schedule;

“(C) immature technologies or excessive manufacturing or integration risk;

“(D) unanticipated design, engineering, manufacturing, or technology integration issues arising during program performance;

“(E) changes in procurement quantities;

“(F) inadequate program funding or funding instability;

“(G) poor performance by personnel of the Federal Government or contractor personnel responsible for program management; or

“(H) any other matters.”

SEC. 3115. Funding of Laboratory-Directed Research and Development Programs.

(a)

In General.— Section 4811(c) of the Atomic Energy Defense Act (50 U.S.C. 2791(c)) is amended—

(1)

by striking “ to such laboratories” and inserting “ to a national security laboratory”;

(2)

by striking “ not to exceed 6 percent” and inserting “ of not less than 5 percent and not more than 7 percent”; and

(3)

by striking “ by such laboratories” and inserting “ by the laboratory”.

(b)

Briefing Required.— Not later than February 28, 2016, the Administrator for Nuclear Security shall provide a briefing to the congressional defense committees on—

(1)

all recent or ongoing reviews of the laboratory-directed research and development program, including such reviews initiated by the Secretary of Energy;

(2)

costs and accounting practices associated with laboratory-directed research and development; and

(3)

how laboratory-directed research and development projects support the mission of the National Nuclear Security Administration.

SEC. 3116. Hanford Waste Treatment and Immobilization Plant Contract Oversight.

(a)

In General.— Subtitle C of title XLIV of the Atomic Energy Defense Act (50 U.S.C. 2621 et seq.) is amended by adding at the end the following new section:

“SEC. 4446. HANFORD WASTE TREATMENT AND IMMOBILIZATION PLANT CONTRACT OVERSIGHT.

“(a) In General.—Not later than 180 days after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2016, the Secretary of Energy shall arrange to have an owner’s agent advise the Secretary in carrying out the oversight responsibilities of the Secretary with respect to the contract described in subsection (b).

“(b) Contract Described.—The contract described in this subsection is the contract between the Office of River Protection of the Department of Energy and Bechtel National, Inc., or its successor relating to the Hanford Waste Treatment and Immobilization Plant (contract number DE–AC27–01RV14136).

“(c) Duties.—The duties of the owner’s agent under subsection (a) shall include advising the Secretary with respect to the following:

“(1) Performing design, construction, nuclear safety, and operability oversight of each facility covered by the contract described in subsection (b).

“(2) Beginning not later than one year after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2016, ensuring that the preliminary documented safety analyses for all facilities covered by the contract meet the requirements of all applicable Department of Energy regulations and guidance, including section 830.206 of title 10, Code of Federal Regulations, and the Department of Energy Standard on the Integration of Safety into the Design Process (DOE–STD–1189–2008).

“(3) Ensuring that, until the Secretary approves the documented safety analysis for each facility covered by the contract, the contractor ensures that each preliminary documented safety analysis is current.

“(4) Ensuring that the contractor acts to promptly resolve any unreviewed safety questions.

“(d) Report on Activities of Owner’s Agent.—

“(1) In general.—Not later than one year after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2016, and every 180 days thereafter, the owner’s agent specified in subsection (a) shall submit to the Secretary a report on the advice provided by the owner’s agent to the Secretary under that subsection with respect to oversight of the contract described in subsection (b).

“(2) Elements.—The report required by paragraph (1) shall include the following:

“(A) Information on the status of, and the plan for resolving, each unreviewed safety question at each facility covered by the contract described in subsection (b).

“(B) An identification of each instance of disagreement between the owner’s agent and the contractor with respect to whether an unreviewed safety question exists and the plan for resolution of the disagreement.

“(C) An identification of each aspect of each preliminary documented safety analysis that is not current, the plan for making that aspect current, and the status of the corrective efforts.

“(D) Information on the status of, and the plan for resolving, each unresolved technical issue at each facility covered by the contract, and the status of corrective efforts.

“(3) Submission to congress.—The Secretary shall transmit to the congressional defense committees the report required by paragraph (1) and any views of the Secretary with respect to the report.

“(e) Report on Selection of the Owner’s Agent.—Not later than 30 days after the selection of the owner’s agent under subsection (a), the Secretary shall submit to the congressional defense committees a report on the process used to select the owner’s agent to ensure that the owner’s agent does not have a conflict of interest.

“(f) Definitions.—In this section:

“(1) The term ‘contractor’ means Bechtel National, Inc.

“(2) The term ‘current’, with respect to a documented safety analysis, means that the documented safety analysis includes any design changes approved by the contractor and any safety evaluation reports issued by the Secretary with respect to the facility covered by the analysis before the date that is 60 days before the date of the analysis.

“(3) The terms ‘documented safety analysis’, ‘safety evaluation report’, and ‘unreviewed safety question’ have the meanings given those terms in section 830.3 of title 10, Code of Federal Regulations (or any corresponding similar ruling or regulation).

“(4) The term ‘owner’s agent’ means a private third-party entity with nuclear safety management expertise.”

(b)

Clerical Amendment.— The table of contents for such Act is amended by inserting after the item relating to section 4445 the following new item:

“Sec. 4446. Hanford Waste Treatment and Immobilization Plant contract oversight.”.

SEC. 3117. Use of Best Practices for Capital Asset Projects and Nuclear Weapon Life Extension Programs.

(a)

Analyses of Alternatives.— Not later than 30 days after the date of the enactment of this Act, the Secretary of Energy, in coordination with the Administrator for Nuclear Security, shall ensure that analyses of alternatives are conducted (including through contractors, as appropriate) in accordance with best practices for capital asset projects and life extension programs of the National Nuclear Security Administration and capital asset projects relating to defense environmental management.

(b)

Cost Estimates.— Not later than 30 days after the date of the enactment of this Act, the Secretary, in coordination with the Administrator, shall develop cost estimates in accordance with cost estimating best practices for capital asset projects and life extension programs of the National Nuclear Security Administration and capital asset projects relating to defense environmental management.

(c)

Revisions to Departmental Project Management Order and Nuclear Weapon Life Extension Requirements.— As soon as practicable after the date of the enactment of this Act, but not later than two years after such date of enactment, the Secretary shall revise—

(1)

the capital asset project management order of the Department of Energy to require the use of best practices for preparing cost estimates and for conducting analyses of alternatives for National Nuclear Security Administration and defense environmental management capital asset projects; and

(2)

the nuclear weapon life extension program procedures of the Department to require the use of use of best practices for preparing cost estimates and conducting analyses of alternatives for National Nuclear Security Administration life extension programs.

SEC. 3118. Research and Development of Advanced Naval Nuclear Fuel System Based on Low-Enriched Uranium.

(a)

Availability of Funds.— Of the funds authorized to be appropriated by this Act or otherwise made available for fiscal year 2016 for defense nuclear nonproliferation for material management and minimization, as specified in the funding table in section 4701, not more than $5,000,000 shall be made available to the Deputy Administrator for Naval Reactors for initial planning and early research and development of an advanced naval nuclear fuel system based on low-enriched uranium.

(b)

Conceptual Program Plan.— Not later than 90 days after the date of the enactment of this Act, the Deputy Administrator shall submit to the congressional defense committees a conceptual plan for a program for research and development of an advanced naval nuclear fuel system based on low-enriched uranium to meet military requirements. Such plan shall include the following:

(1)

Timelines.

(2)

Costs (including an analysis of the cost of such research and development as compared to the cost of maintaining current naval nuclear reactor technology).

(3)

Milestones, including an identification of decision points in which the Deputy Administrator shall determine whether further research and development of a low-enriched uranium naval nuclear fuel system is warranted.

(4)

Identification of any benefits or risks for nuclear nonproliferation of such research and development and eventual deployment.

(5)

Identification of any military benefits or risks of such research and development and eventual deployment.

(6)

A discussion of potential security cost savings from using low-enriched uranium in future naval nuclear fuels, including for transporting and using low-enriched uranium fuel, and how such cost savings relate to the cost of fuel fabrication.

(7)

The distinguishment between requirements for aircraft carriers from submarines.

(8)

Any other matters the Deputy Administrator determines appropriate.

(c)

Determination of Continued Research and Development.—

(1)

Determination.— Not later than 60 days after the date on which the Deputy Administrator submits the conceptual plan to the congressional defense committees under subsection (b), the Secretary of Energy and the Secretary of the Navy shall jointly submit to the congressional defense committees the determination of the Secretaries as to whether the United States should continue to pursue research and development of an advanced naval nuclear fuel system based on low-enriched uranium.

(2)

Budget request.— If the Secretaries determine under paragraph (1) that research and development of an advanced naval nuclear fuel system based on low-enriched uranium should continue, the Secretaries shall ensure that the budget of the President for fiscal year 2018 (and for fiscal year 2017, if feasible) submitted to Congress under section 1105(a) of title 31, United States Code, includes in the budget line item for the “Defense Nuclear Nonproliferation” account for material management and minimization amounts necessary to carry out the conceptual plan under subsection (b).

(d)

Memorandum of Understanding.— If the Secretaries determine under subsection (c)(1) that research and development of an advanced naval nuclear fuel system based on low-enriched uranium should continue, not later than 60 days after such determination, the Deputy Administrator shall enter into a memorandum of understanding with the Deputy Administrator for Defense Nuclear Nonproliferation regarding such research and development, including with respect to how funding for such research and development will be requested for the “Defense Nuclear Nonproliferation” account for material management and minimization and provided to the “Naval Reactors” account to carry out the program.

SEC. 3119. Disposition of Weapons-Usable Plutonium.

(a)

Mixed-oxide Fuel Fabrication Facility.—

(1)

In general.— Using funds described in paragraph (3), the Secretary of Energy shall carry out construction and project support activities relating to the MOX facility.

(2)

Exception.— Notwithstanding paragraph (1), not more than $5,000,000 of the funds described in paragraph (3) may be obligated or expended to conduct an analysis of alternative options for carrying out the plutonium disposition program.

(3)

Funds described.— The funds described in this paragraph are the following:

(A)

Funds authorized to be appropriated by this Act or otherwise made available for fiscal year 2016 for the National Nuclear Security Administration for the MOX facility for construction and project support activities.

(B)

Funds authorized to be appropriated for a fiscal year prior to fiscal year 2016 for the National Nuclear Security Administration for the MOX facility for construction and project support activities that are unobligated as of the date of the enactment of this Act.

(b)

Updated Performance Baseline.— The Secretary shall include in the budget justification materials submitted to Congress in support of the Department of Energy budget (as submitted with the budget of the President under section 1105(a) of title 31, United States Code) for fiscal year 2017 an updated performance baseline for construction and project support activities relating to the MOX facility conducted in accordance with Department of Energy Order 413.3B (relating to program and project management for the acquisition of capital assets).

(c)

Definitions.— In this section:

(1)

MOX facility.— The term “MOX facility” means the mixed-oxide fuel fabrication facility at the Savannah River Site, Aiken, South Carolina.

(2)

Project support activities.— The term “project support activities” means activities that support the design, long-lead equipment procurement, and site preparation of the MOX facility.

SEC. 3120. Establishment of Microlab Pilot Program.

(a)

In General.— The Secretary of Energy, in consultation with the directors of the national security laboratories, may establish a microlab pilot program under which the Secretary establishes a microlab for the purposes of—

(1)

enhancing collaboration with regional research groups, such as institutions of higher education and industry groups;

(2)

accelerating technology transfer from national security laboratories to the marketplace; and

(3)

promoting regional workforce development through science, technology, engineering, and mathematics instruction and training.

(b)

Criteria.—

(1)

In general.— In determining the placement of a microlab under subsection (a), the Secretary shall consider—

(A)

the interest of a national security laboratory in establishing a microlab;

(B)

the existence of an available facility that has the capability to house a microlab;

(C)

whether employees of a national security laboratory and persons from academia, industry, and government are available to be assigned to the microlab; and

(D)

cost-sharing or in-kind contributions from State and local governments and private industry.

(2)

Cost-sharing.— The Secretary shall, to the extent feasible, require cost-sharing or in-kind contributions described in paragraph (1)(D) to cover the full cost of the microlab under subsection (a).

(c)

Timing.— If the Secretary, in consultation with the directors of the national security laboratories, elects to establish a microlab pilot program under this section, the Secretary, in collaboration with such directors, shall—

(1)

not later than 180 days after the date of the enactment of this Act, begin the process of determining the placement of the microlab under subsection (a); and

(2)

not later than one year after such date of enactment, implement the microlab pilot program under this section.

(d)

Reports Required.— If the Secretary, in consultation with the directors of the national security laboratories, elects to establish a microlab pilot program under this section, the Secretary shall submit to the appropriate congressional committees—

(1)

not later than 120 days after the date of the implementation of the program, a report that provides an update on the implementation of the program; and

(2)

not later than one year after the date of the implementation of the program, a report on the program, including findings and recommendations of the Secretary with respect to the program.

(e)

Definitions.— In this section:

(1)

Appropriate congressional committees.— The term “appropriate congressional committees” means—

(A)

the Committee on Armed Services and the Committee on Energy and Natural Resources of the Senate; and

(B)

the Committee on Armed Services, the Committee on Science, Space, and Technology, and the Committee on Energy and Commerce of the House of Representatives.

(2)

Microlab.— The term “microlab” means a facility that is—

(A)

in close proximity to, but outside the perimeter of, a national security laboratory;

(B)

an extension of or affiliated with a national security laboratory; and

(C)

accessible to the public.

(3)

National security laboratory.— The term “national security laboratory” has the meaning given that term in section 3281 of the National Nuclear Security Administration Act (50 U.S.C. 2471).

SEC. 3121. Prohibition on Availability of Funds for Provision of Defense Nuclear Nonproliferation Assistance to Russian Federation.

(a)

Prohibition.— None of the funds authorized to be appropriated by this Act or otherwise made available for fiscal year 2016 for defense nuclear nonproliferation activities may be obligated or expended to enter into a contract with, or otherwise provide assistance to, the Russian Federation.

(b)

Waiver.— The Secretary of Energy, without delegation, may waive the prohibition in subsection (a) if the Secretary—

(1)

submits to the appropriate congressional committees a report containing—

(A)

notification that such a waiver is in the national security interest of the United States; and

(B)

justification for such a waiver; and

(2)

a period of 15 days elapses following the date on which the Secretary submits such report.

(c)

Appropriate Congressional Committees Defined.— In this section, the term “appropriate congressional committees” means the following:

(1)

The congressional defense committees.

(2)

The Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives.

SEC. 3122. Prohibition on Availability of Funds for New Fixed Site Radiological Portal Monitors in Foreign Countries.

(a)

Prohibition.— None of the funds authorized to be appropriated by this Act or otherwise made available for fiscal year 2016 for the National Nuclear Security Administration may be obligated or expended for the installation, on or after the date of the enactment of this Act, of fixed site radiological portal monitors or equipment in foreign countries until the date on which the Director of National Intelligence submits to the Administrator for Nuclear Security and the appropriate congressional committees, consistent with the provision of classified information and protection of sources and methods, a report containing an assessment of—

(1)

whether and the extent to which fixed site and mobile radiological monitors address nuclear nonproliferation and smuggling threats;

(2)

the contribution of other threat reduction programs and how well such programs address nuclear nonproliferation and smuggling threats;

(3)

which programs have the greatest impact and cost-benefit for addressing nuclear nonproliferation and smuggling threats; and

(4)

such other matters as the Director considers appropriate.

(b)

Plan Required.—

(1)

In general.— Not later than March 1, 2016, the Administrator shall submit to the appropriate congressional committees a plan for transitioning fixed site radiological portal monitors installed in foreign countries before or after the date of the enactment of this Act to being sustained, to the greatest extent possible, by the countries in which such monitors are located.

(2)

Elements.— The plan required by paragraph (1) shall include—

(A)

timelines for the transition of the radiological portal monitors described in paragraph (1) to being sustained by the countries in which such monitors are located; and

(B)

an estimate of the costs expected to be incurred by the United States before the transition is complete.

(c)

Appropriate Congressional Committees Defined.— In this section, the term “appropriate congressional committees” means—

(1)

the congressional defense committees;

(2)

the Select Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of the House of Representatives; and

(3)

the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives.

SEC. 3123. Limitation on Availability of Funds for Certain Arms Control and Nonproliferation Technologies.

(a)

In General.— None of the funds authorized to be appropriated by this Act or otherwise made available for fiscal year 2016 for the Office of Nonproliferation and Arms Control of the National Nuclear Security Administration may be obligated or expended to test and validate arms control and nonproliferation vertification and monitoring technologies designed to be used to verify and monitor obligations under arms control treaties or other international agreements to which the United States is not a signatory until the Administrator for Nuclear Security submits to the congressional defense committees a comprehensive review of all arms control and nonproliferation vertification and monitoring technologies that are in research and development or production as of the date of the enactment of this Act under the defense nuclear nonproliferation programs of the Administration.

(b)

Elements.— The review required by subsection (a) shall include, with respect to each arms control and nonproliferation vertification and monitoring technology covered by the review, a statement of—

(1)

the technology readiness level of the technology;

(2)

the obligation under a treaty or other international agreement supported by the technology; and

(3)

the purpose for which the technology is being developed or produced.

SEC. 3124. Limitation on Availability of Funds for Nuclear Weapons Dismantlement.

(a)

Limitation on Maximum Amount for Dismantlement.— Of the funds authorized to be appropriated by this Act or otherwise made available for fiscal year 2016 for the National Nuclear Security Administration, not more than $50,000,000 may be obligated or expended to carry out the nuclear weapons dismantlement and disposition activities of the Administration.

(b)

Limitation on Dismantlement of Certain Cruise Missile Warheads.—

(1)

In general.— Except as provided by paragraph (2), none of the funds authorized to be appropriated by this Act or otherwise made available for fiscal year 2016 for the National Nuclear Security Administration may be obligated or expended to dismantle or dispose of a W84 nuclear weapon.

(2)

Exception.— The limitation in paragraph (1) shall not apply to activities necessary to conduct maintenance or surveillance of the nuclear weapons stockpile or activities to ensure the safety or reliability of the nuclear weapons stockpile.

Subtitle C Plans and Reports

SEC. 3131. Long-Term Plan for Meeting National Security Requirements for Unencumbered Uranium.

(a)

In General.— Subtitle A of title XLII of the Atomic Energy Defense Act (50 U.S.C. 2521 et seq.), as amended by section 3112, is further amended by adding at the end the following new section:

“SEC. 4221. LONG-TERM PLAN FOR MEETING NATIONAL SECURITY REQUIREMENTS FOR UNENCUMBERED URANIUM.

“(a) In General.—Concurrent with the submission to Congress of the budget of the President under section 1105(a) of title 31, United States Code, in each even-numbered year beginning in 2016 and ending in 2026, the Secretary of Energy shall submit to the congressional defense committees a plan for meeting national security requirements for unencumbered uranium through 2065.

“(b) Plan Requirements.—The plan required by subsection (a) shall include the following:

“(1) An inventory of unencumbered uranium (other than depleted uranium), by program source and enrichment level, that, as of the date of the plan, is allocated to national security requirements.

“(2) An inventory of unencumbered uranium (other than depleted uranium), by program source and enrichment level, that, as of the date of the plan, is not allocated to national security requirements but could be allocated to such requirements.

“(3) An identification of national security requirements for unencumbered uranium, by program source and enrichment level.

“(4) A description of any shortfall in obtaining unencumbered uranium to meet national security requirements and an assessment of whether that shortfall could be mitigated through the blending down of uranium that is of a higher enrichment level.

“(5) An inventory of unencumbered depleted uranium, an assessment of the portion of that uranium that could be allocated to national security requirements through re-enrichment, and an estimate of the costs of re-enriching that uranium.

“(6) A description of the swap and barter agreements involving unencumbered uranium needed to meet national security requirements that are in effect on the date of the plan.

“(7) An assessment of whether additional enrichment of uranium will be required to meet national security requirements and an estimate of the time for production operations and the cost for each type of enrichment being considered.

“(8) A description of changes in policy that would mitigate any shortfall in obtaining unencumbered uranium to meet national security requirements and the implications of those changes.

“(c) Form of Plan.—The plan required by subsection (a) shall be submitted in unclassified form, but may include a classified annex.

“(d) Definitions.—In this section:

“(1) The term ‘depleted’, with respect to uranium, means that the uranium is depleted in uranium-235 compared with natural uranium.

“(2) The term ‘unencumbered’, with respect to uranium, means that the United States has no obligation to foreign governments to use the uranium for only peaceful purposes.”

(b)

Clerical Amendment.— The table of contents for such Act, as amended by section 3112, is further amended by inserting after the item relating to section 4220 the following new item:

“Sec. 4221. Long-term plan for meeting national security requirements for unencumbered uranium.”.

SEC. 3132. Defense Nuclear Nonproliferation Management Plan and Reports.

(a)

Defense Nuclear Proliferation Management Plan.—

(1)

In general.— Title XLIII of the Atomic Energy Defense Act (50 U.S.C. 2563 et seq.) is amended by adding at the end the following new section:

“SEC. 4309. DEFENSE NUCLEAR NONPROLIFERATION MANAGEMENT PLAN.

“(a) In General.—Concurrent with the submission to Congress of the budget of the President under section 1105(a) of title 31, United States Code, in each fiscal year, the Administrator shall submit to the congressional defense committees a five-year management plan for activities associated with the defense nuclear nonproliferation programs of the Administration to prevent and counter the proliferation of materials, technology, equipment, and expertise related to nuclear and radiological weapons in order to minimize and address the risk of nuclear terrorism and the proliferation of such weapons.

“(b) Elements.—The plan required by subsection (a) shall include, with respect to each defense nuclear nonproliferation program of the Administration, the following:

“(1) A description of the policy context in which the program operates, including—

“(A) a list of relevant laws, policy directives issued by the President, and international agreements; and

“(B) nuclear nonproliferation activities carried out by other Federal agencies.

“(2) A description of the objectives and priorities of the program during the year preceding the submission of the plan required by subsection (a).

“(3) A description of the activities carried out under the program during that year.

“(4) A description of the accomplishments and challenges of the program during that year, based on an assessment of metrics and objectives previously established to determine the effectiveness of the program.

“(5) A description of any gaps that remain that were not or could not be addressed by the program during that year.

“(6) An identification and explanation of uncommitted or uncosted balances for the program, as of the date of the submission of the plan required by subsection (a), that are greater than the acceptable carryover thresholds, as determined by the Secretary of Energy.

“(7) An identification of funds for the program received through contributions from or cost-sharing agreements with foreign governments consistent section 3132(f) of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (50 U.S.C. 2569(f)) during the year preceding the submission of the plan required by subsection (a) and an explanation of such contributions and agreements.

“(8) A description and assessment of activities carried out under the program during that year that were coordinated with other elements of the Department of Energy, with the Department of Defense, and with other Federal agencies, to maximize efficiency and avoid redundancies.

“(9) Plans for activities of the program during the five-year period beginning on the date on which the plan required by subsection (a) is submitted, including activities with respect to the following:

“(A) Preventing nuclear and radiological proliferation and terrorism, including through—

“(i) material management and minimization, particularly with respect to removing or minimizing the use of highly enriched uranium, plutonium, and radiological materials worldwide (and identifying the countries in which such materials are located), efforts to dispose of surplus material, converting reactors from highly enriched uranium to low-enriched uranium (and identifying the countries in which such reactors are located);

“(ii) global nuclear material security, including securing highly enriched uranium, plutonium, and radiological materials worldwide (and identifying the countries in which such materials are located), and providing radiation detection capabilities at foreign ports and borders;

“(iii) nonproliferation and arms control, including nuclear verification and safeguards;

“(iv) defense nuclear research and development, including a description of activities related to developing and improving technology to detect the proliferation and detonation of nuclear weapons, verifying compliance of foreign countries with commitments under treaties and agreements relating to nuclear weapons, and detecting the diversion of nuclear materials (including safeguards technology); and

“(v) nonproliferation construction programs, including activities associated Department of Energy Order 413.1 (relating to program management controls).

“(B) Countering nuclear and radiological proliferation and terrorism.

“(C) Responding to nuclear and radiological proliferation and terrorism, including through—

“(i) crisis operations;

“(ii) consequences management; and

“(iii) emergency management, including international capacity building.

“(10) A threat assessment, carried out by the intelligence community (as defined in section 3(4) of the National Security Act of 1947 (50 U.S.C. 3003(4))), with respect to the risk of nuclear and radiological proliferation and terrorism and a description of how each activity carried out under the program will counter the threat during the five-year period beginning on the date on which the plan required by subsection (a) is submitted and, as appropriate, in the longer term.

“(11) A plan for funding the program during that five-year period.

“(12) An identification of metrics and objectives for determining the effectiveness of each activity carried out under the program during that five-year period.

“(13) A description of the activities to be carried out under the program during that five-year period and a description of how the program will be prioritized relative to other defense nuclear nonproliferation programs of the Administration during that five-year period to address the highest priority risks and requirements, as informed by the threat assessment carried out under paragraph (10).

“(14) A description of funds for the program expected to be received during that five-year period through contributions from or cost-sharing agreements with foreign governments consistent section 3132(f) of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (50 U.S.C. 2569(f)).

“(15) A description and assessment of activities to be carried out under the program during that five-year period that will be coordinated with other elements of the Department of Energy, with the Department of Defense, and with other Federal agencies, to maximize efficiency and avoid redundancies.

“(16) Such other matters as the Administrator considers appropriate.

“(c) Form of Report.—The plan required by subsection (a) shall be submitted to the congressional defense committees in unclassified form, but may include a classified annex if necessary.”

(2)

Clerical amendment.— The table of contents for such Act is amended by inserting after the item relating to section 4308 the following new item:

“Sec. 4309. Defense nuclear nonproliferation management plan.”.

(b)

Extension and Modification of Certain Annual Reports on Nuclear Nonproliferation.— Section 3122 of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112–81; 125 Stat. 1710) is amended—

(1)

by striking subsections (a) and (b);

(2)

by redesignating subsections (c), (d), and (e) as subsections (a), (b), and (c), respectively;

(3)

in subsection (a), as redesignated by paragraph (2)—

(A)

in the matter preceding paragraph (1), by striking “ 2016” and inserting “ 2020”;

(B)

in paragraph (2), by inserting after “ world,” the following: “ including an identification of such uranium that is obligated by the United States,”; and

(C)

by adding at the end the following new paragraph:

“(3) A list, by country and site, reflecting the total amount of separated plutonium around the world, including an identification of such plutonium that is obligated by the United States, and an assessment of the vulnerability of the plutonium to theft or diversion.”

; and

(4)

in paragraph (2) of subsection (b), as so redesignated, by striking “ subsection (c)(2)” and inserting “ paragraph (2) or (3) of subsection (a)”.

(c)

Conforming Repeal.— Section 3145 of the National Defense Authorization Act for Fiscal Year 2013 (Public Law 112–239; 126 Stat. 2197) is repealed.

SEC. 3133. Plan for Deactivation and Decommissioning of Nonoperational Defense Nuclear Facilities.

(a)

In General.— Subtitle B of title XLIV of the Atomic Energy Defense Act (50 U.S.C. 2602 et seq.) is amended by adding at the end the following new section:

“SEC. 4423. PLAN FOR DEACTIVATION AND DECOMMISSIONING OF NONOPERATIONAL DEFENSE NUCLEAR FACILITIES.

“(a) In General.—The Secretary of Energy shall, during each even-numbered year beginning in 2016, develop and subsequently carry out a plan for the activities of the Department of Energy relating to the deactivation and decommissioning of nonoperational defense nuclear facilities.

“(b) Elements.—The plan required by subsection (a) shall include the following:

“(1) A list of nonoperational defense nuclear facilities, prioritized for deactivation and decommissioning based on the potential to reduce risks to human health, property, or the environment and to maximize cost savings.

“(2) An assessment of the life cycle costs of each nonoperational defense nuclear facility during the period beginning on the date on which the plan is submitted under subsection (d) and ending on the earlier of—

“(A) the date that is 25 years after the date on which the plan is submitted; or

“(B) the estimated date for deactivation and decommissioning of the facility.

“(3) An estimate of the cost and time needed to deactivate and decommission each nonoperational defense nuclear facility.

“(4) A schedule for when the Office of Environmental Management will accept each nonoperational defense nuclear facility for deactivation and decommissioning.

“(5) An estimate of costs that could be avoided by—

“(A) accelerating the cleanup of nonoperational defense nuclear facilities; or

“(B) other means, such as reusing such facilities for another purpose.

“(c) Plan for Transfer of Responsibility for Certain Facilities.—The Secretary shall, during 2016, develop and subsequently carry out a plan under which the Administrator shall transfer, by March 31, 2019, to the Assistant Secretary for Environmental Management the responsibility for decontaminating and decommissioning facilities of the Administration that the Secretary determines—

“(1) are nonoperational as of September 30, 2015; and

“(2) meet the requirements of the Office of Environmental Management for such transfer.

“(d) Submission to Congress.—Not later than March 31 of each even-numbered year beginning in 2016, the Secretary shall submit to the appropriate congressional committees a report that includes—

“(1) the plan required by subsection (a);

“(2) a description of the deactivation and decommissioning actions expected to be taken during the following fiscal year pursuant to the plan;

“(3) in the case of the report submitting during 2016, the plan required by subsection (c); and

“(4) in the case of a report submitted during 2018 or any year thereafter, a description of the deactivation and decommissioning actions taken at each nonoperational defense nuclear facility during the preceding fiscal year.

“(e) Termination.—The requirements of this section shall terminate after the submission to the appropriate congressional committees of the report required by subsection (d) to be submitted not later than March 31, 2026.

“(f) Definitions.—In this section:

“(1) The term ‘appropriate congressional committees’ means—

“(A) the congressional defense committees; and

“(B) the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives.

“(2) The term ‘life cycle costs’, with respect to a facility, means—

“(A) the present and future costs of all resources and associated cost elements required to develop, produce, deploy, or sustain the facility; and

“(B) the present and future costs to deactivate, decommission, and deconstruct the facility.

“(3) The term ‘nonoperational defense nuclear facility’ means a production facility or utilization facility (as those terms are defined in section 11 of the Atomic Energy Act of 1954 (42 U.S.C. 2014)) under the control or jurisdiction of the Secretary of Energy and operated for national security purposes that is no longer needed for the mission of the Department of Energy, including the National Nuclear Security Administration.”

(b)

Clerical Amendment.— The table of contents for such Act is amended by inserting after the item relating to section 4422 the following new item:

“Sec. 4423. Plan for deactivation and decommissioning of nonoperational defense nuclear facilities.”.

SEC. 3134. Assessment of Emergency Preparedness of Defense Nuclear Facilities.

(a)

In General.— Subtitle A of title XLVIII of the Atomic Energy Defense Act (50 U.S.C. 2781 et seq.) is amended by inserting after section 4802 the following new section:

“SEC. 4802A. ASSESSMENTS OF EMERGENCY PREPAREDNESS OF DEFENSE NUCLEAR FACILITIES.

“The Secretary of Energy shall include, in each award-fee evaluation conducted under section 16.401 of title 48, Code of Federal Regulations, of a management and operating contract for a Department of Energy defense nuclear facility in 2016 or any even-numbered year thereafter, an assessment of the adequacy of the emergency preparedness of that facility, including an assessment of the seniority level of management and operating contractor employees that participate in emergency preparedness exercises at that facility.”

(b)

Clerical Amendment.— The table of contents for such Act is amended by inserting after the item relating to section 4802 the following new item:

“Sec. 4802A. Assessments of emergency preparedness of defense nuclear facilities.”.

SEC. 3135. Modifications to Cost-Benefit Analyses for Competition of Management and Operating Contracts.

(a)

In General.— Section 3121 of the National Defense Authorization Act for Fiscal Year 2013 (Public Law 112–239; 126 Stat. 2175), as amended by section 3124 of the National Defense Authorization Act for Fiscal Year 2014 (Public Law 113–66; 127 Stat. 1062), is further amended—

(1)

by redesignating subsection (d) as subsection (e);

(2)

by striking subsections (b) and (c) and inserting the following new subsections:

“(b) Report Described.—A report described in this subsection is a report on a contract described by subsection (a) that includes—

“(1) a clear and complete description of the cost savings the Administrator expects to result from the competition for the contract over the life of the contract, including associated analyses, assumptions, and information sources used to determine such expected cost savings;

“(2) a description of any key limitations or uncertainties that could affect such costs savings, including costs savings that are anticipated but not fully known;

“(3) the costs of the competition for the contract, including the immediate costs of conducting the competition and any increased costs over the life of the contract;

“(4) a description of any disruptions or delays in mission activities or deliverables resulting from the competition for the contract;

“(5) a clear and complete description of the benefits expected by the Administrator with respect to mission performance or operations resulting from the competition;

“(6) how the competition for the contract complied with the Federal Acquisition Regulation regarding federally funded research and development centers, if applicable;

“(7) the factors considered and processes used by the Administrator to determine—

“(A) whether to compete or extend the contract; and

“(B) which activities at the facility should be covered under the contract rather than under a different contract;

“(8) with respect to the matters included under paragraphs (1) through (7), a detailed description of the analyses conducted by the Administrator to reach the conclusions presented in the report, including any assumptions, limitations, and uncertainties relating to such conclusions; and

“(9) any other matters the Administrator considers appropriate.

“(c) Information Quality.—A report required by subsection (a) shall be prepared in accordance with—

“(1) the information quality guidelines of the Department of Energy that are relevant to the clear and complete presentation of information on each matter required to be included in the report under subsection (b); and

“(2) best practices of the Government Accountability Office and relevant industries for cost estimating, if appropriate.

“(d) Review by Comptroller General of the United States.—

“(1) Initial review.—Except as provided in paragraph (3), the Comptroller General of the United States shall provide a briefing to the congressional defense committees that includes a review of each report required by subsection (a) not later than 180 days after the report is submitted to such committees.

“(2) Comprehensive review.—Except as provided in paragraph (3), the Comptroller General shall submit to the congressional defense committees a review of each report required by subsection (a) with respect to a contract not later than 3 years after the report is submitted to such committees that includes an assessment, based on the most current information available, of the following:

“(A) The actual cost savings achieved compared to cost savings estimated under subsection (b)(1), and any increased costs incurred under the contract that were unexpected or uncertain at the time the contract was awarded.

“(B) Any disruptions or delays in mission activities or deliverables resulting from the competition for the contract compared to the disruptions and delays estimated under subsection (b)(4).

“(C) Whether expected benefits of the competition with respect to mission performance or operations have been achieved.

“(D) Such other matters as the Comptroller General considers appropriate.

“(3) Exception.—The Comptroller General may not conduct a review under paragraph (1) or (2) of a report relating to a contract to manage and operate a facility of the National Nuclear Security Administration while a protest described in subsection (a)(2) is pending with respect to that contract.”

; and

(3)

in subsection (e), as redesignated by paragraph (1)—

(A)

in paragraph (1), by striking “ 2017” and inserting “ 2020”;

(B)

by striking paragraph (2) and redesignating paragraph (3) as paragraph (2); and

(C)

in paragraph (2), as redesignated by subparagraph (B), by striking “ and (d)(2)”.

(b)

Sense of Congress.— It is the sense of Congress that—

(1)

in the past decade, competition of the management and operating contracts for the national security laboratories has resulted in significant increases in fees paid to the contractors—funding that otherwise could be used to support program and mission activities of the National Nuclear Security Administration;

(2)

competition of the management and operating contracts of the nuclear security enterprise is an important mechanism to help realize cost savings, seek efficiencies, improve performance, and hold contractors accountable;

(3)

when the Administrator for Nuclear Security considers it appropriate to achieve those goals, the Administrator should conduct competition of such contracts while recognizing the unique nature of federally funded research and development centers; and

(4)

the Administrator should ensure that fixed fees and performance-based fees contained in management and operating contracts are as low as possible to maintain a focus on national service while attracting high-quality contractors and achieving the goals of the competition.

SEC. 3136. Interagency Review of Applications for the Transfer of United States Civil Nuclear Technology.

(a)

Report on Transfers to Covered Foreign Countries.— Not less frequently than every 90 days, the Secretary of Energy shall submit to the appropriate congressional committees a report that includes—

(1)

a description of the authorizations under section 57 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2077(b)) to transfer United States civil nuclear technology to a covered foreign country during the preceding 90 days; and

(2)

a statement of whether any agency required to be consulted under that section or pursuant to regulation objected to or sought conditions on each such transfer.

(b)

Determination of Technologies to Be Protected.—

(1)

In general.— Not later than 90 days after the date of the enactment of this Act, and every five years thereafter, the Secretary of Energy shall—

(A)

in consultation with the Secretary of State, the Secretary of Commerce, the Secretary of Defense, the Director of National Intelligence, and the Nuclear Regulatory Commission, determine the critical United States civil nuclear technologies that should be protected from diversion to a military program of a covered foreign country, including with respect to a naval propulsion or weapons program; and

(B)

notify the appropriate congressional committees with respect to the determination and the technologies covered by the determination.

(2)

Notification.—

(A)

In general.— Except as provided in subparagraph (B), not later than 14 days before making an authorization under section 57 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2077(b)) for the transfer of a technology covered by a determination under paragraph (1) to a covered foreign country, the Secretary of Energy shall submit to the appropriate congressional committees a report that includes—

(i)

a notification of the intention of the Secretary to make the authorization for the transfer of such technology; and

(ii)

a statement of whether any agency required to be consulted under such section 57 b. or pursuant to regulation objected to or sought conditions on the transfer.

(B)

Waiver of deadline.— The Secretary may waive the requirement under subparagraph (A) to submit the report required by that subparagraph not later than 14 days before making an authorization for the transfer of a technology covered by a determination under paragraph (1) to a covered foreign country if the Secretary—

(i)

determines that an imminent radiological hazard exists; and

(ii)

not later than 7 days after determining that such hazard exists, submits to the appropriate congressional committees—

(I)

a certification that the hazard exists;

(II)

a justification for the waiver; and

(III)

the notification required by clause (i) of subparagraph (A) and the statement required by clause (ii) of that subparagraph.

(c)

Consultations With Intelligence Community.—

(1)

In general.— The Secretary of Energy shall expeditiously revise part 810 of title 10, Code of Federal Regulations, to ensure that the Director of National Intelligence—

(A)

is consulted with respect to the views of the intelligence community (as defined in section 3(4) of the National Security Act of 1947 (50 U.S.C. 3003(4))) with respect to each authorization issued under section 57 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2077(b)) for the transfer of United States civil nuclear technology to a covered foreign country before the determination to approve or disapprove the request for the authorization; and

(B)

is provided with an opportunity to present the views of the Director and the intelligence community on the national security risks of the transfer, if any.

(2)

Submission to congress.— The Secretary of Energy, jointly with the Director of National Intelligence, shall include the results of consultations conducted under paragraph (1) in each report under subsection (a) and each notification under subsection (b)(2).

(d)

Report on Compliance of Covered Foreign Countries and End-users.— Not less frequently than annually, the Secretary of Energy shall submit to the appropriate congressional committees a report that includes—

(1)

an assessment of whether each covered foreign country is in compliance with its obligations under any authorization for the transfer of United States civil nuclear technology under section 57 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2077(b));

(2)

with respect to any covered foreign country that is not in compliance with such obligations—

(A)

a description the efforts of the United States to bring the country into compliance;

(B)

an evaluation of the result of such efforts; and

(C)

an assessment of the options available to the Secretary as a result of the country not being in compliance;

(3)

an assessment of whether each end-user to which United States civil nuclear technology is transferred pursuant to an authorization under such section 57 b. is in compliance with the obligations of the end-user under that authorization; and

(4)

a description of any consequences for the end-user or the exporter of the technology if the end-user is not in compliance with such obligations.

(e)

Report on Transfers to All Foreign Countries.—

(1)

In general.— Concurrent with the submission to Congress of the budget of the President for a fiscal year under section 1105(a) of title 31, United States Code, the Secretary of Energy shall submit to the appropriate congressional committees a report on the activities of the Department of Energy associated with the review of applications for authorization under section 57 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2077(b)) to transfer United States civil nuclear technology to any foreign country.

(2)

Elements.— The report required by paragraph (1) shall include—

(A)

the number of applications for authorization under section 57 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2077(b)) to transfer United States civil nuclear technology to a foreign country submitted during the year preceding the submission of the report;

(B)

the length of time each such application was under review;

(C)

the number of such applications that were granted; and

(D)

a description of efforts to streamline the review of such applications, taking into account the proliferation and diversion potential of end-users in the country to which United States civil nuclear technology would be transferred pursuant to such applications.

(f)

Notifications of Potential Diversions.— The Director of National Intelligence shall notify the Department of Energy and the appropriate congressional committees not later than 30 days after the date on which the Director determines that there is credible intelligence that United States civil nuclear technology is being or has been diverted—

(1)

to a military program in a foreign country to which the transfer of the technology was authorized under section 57 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2077(b)); or

(2)

to a foreign country to which the transfer of the technology was not so authorized.

(g)

Guidelines.— Not later than 60 days after the date of the enactment of this Act, the Secretary of Energy shall issue guidance with respect to the use of the clear and intended authority of the Secretary under section 234 of the Atomic Energy Act of 1954 (42 U.S.C. 2282) to impose civil penalties, including fines and debarment, and to make referrals to the Attorney General for prosecution, for violations of the terms of authorizations for the transfer of United States civil nuclear technology issued under section 57 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2077(b)).

(h)

Report on Transfer of Sensitive Items.—

(1)

In general.— Not later than 180 days after the date of the enactment of this Act, and annually thereafter, the President shall submit to the appropriate congressional committees a report—

(A)

describing the efforts of covered foreign countries to prevent the transfer of sensitive items, including efforts to improve the prevention of the transfer of such items; and

(B)

assessing the adequacy of such efforts.

(2)

Sensitive items defined.— In this subsection, the term “sensitive items” means goods, services, and technologies described in section 2(a) of the Iran, North Korea, and Syria Nonproliferation Act (Public Law 106–178; 50 U.S.C. 1701 note).

(i)

Definitions.— In this section:

(1)

Appropriate congressional committees.— The term “appropriate congressional committees” means—

(A)

the congressional defense committees;

(B)

the Committee on Energy and Natural Resources, the Committee on Foreign Relations, and the Select Committee on Intelligence of the Senate; and

(C)

the Committee on Energy and Commerce, the Committee on Foreign Affairs, and the Permanent Select Committee on Intelligence of the House of Representatives.

(2)

Covered foreign country.— The term “covered foreign country” means a foreign country that is a nuclear-weapon state, as defined by Article IX(3) of the Treaty on the Non-Proliferation of Nuclear Weapons, signed at Washington, London, and Moscow July 1, 1968, but does not include the United States, the United Kingdom, or France.

SEC. 3137. Governance and Management of Nuclear Security Enterprise.

(a)

Sense of Congress.— It is the sense of Congress that—

(1)

correcting the longstanding problems with the governance and management of the nuclear security enterprise will require robust, personal, and long-term engagement by the President, the Secretary of Energy, the Administrator for Nuclear Security, and leaders from the appropriate congressional committees;

(2)

recent and past studies of the governance and management of the nuclear security enterprise have provided a list of reasonable, practical, and actionable steps that the Secretary and the Administrator should take to make the nuclear security enterprise more efficient and more effective; and

(3)

lasting and effective change to the nuclear security enterprise will require personal engagement by senior leaders, a clear plan, and mechanisms for ensuring follow-through and accountability.

(b)

Implementation Plan.—

(1)

Implementation action team.—

(A)

The Secretary and the Administrator shall jointly establish a team of senior officials from the Department of Energy and the National Nuclear Security Administration to develop and carry out an implementation plan to reform the governance and management of the nuclear security enterprise to improve the effectiveness and efficiency of the nuclear security enterprise. Such plan shall be developed and implemented in accordance with the National Nuclear Security Administration Act (50 U.S.C. 2401 et seq.), the Atomic Energy Defense Act (50 U.S.C. 2501 et seq.), and any other provision of law.

(B)

The team established under paragraph (1) shall be co-chaired by the Deputy Secretary of Energy and the Administrator.

(C)

In developing and carrying out the implementation plan, the team shall consult with the implementation assessment panel established under subsection (c)(1).

(2)

Elements.— The implementation plan developed under paragraph (1)(A) shall address all recommendations contained in the covered study (except such recommendations that require legislative action to carry out) by identifying specific actions, milestones, timelines, and responsible personnel to implement such plan.

(3)

Submission.— Not later than March 31, 2016, the Secretary and the Administrator shall jointly submit to the appropriate congressional committees the implementation plan developed under paragraph (1)(A).

(c)

Implementation Assessment Panel.—

(1)

Agreement.— Not later than 60 days after the date of the enactment of this Act, the Administrator shall seek to enter into a joint agreement with the National Academy of Sciences and the National Academy of Public Administration to establish a panel of external, independent experts to evaluate the implementation plan developed under subsection (b)(1)(A) and the implementation of such plan.

(2)

Duties.— The panel established under paragraph (1) shall—

(A)

provide guidance to the Secretary and the Administrator with respect to the implementation plan developed under subsection (b)(1)(A), including how such plan compares or contrasts with the covered study;

(B)

track the implementation of such plan; and

(C)

assess the effectiveness of such plan.

(3)

Reports.—

(A)

Not later than July 1, 2016, the panel established under paragraph (1) shall submit to the appropriate congressional committees, the Secretary, and the Administrator an initial assessment of the implementation plan developed under subsection (b)(1)(A), including with respect to the completeness of the plan, how the plan aligns with the intent and recommendations made by the covered study, and the prospects for success for the plan.

(B)

Beginning February 28, 2017, and semiannually thereafter through 2020, the panel established under paragraph (1) shall brief the appropriate congressional committees, the Secretary, and the Administrator on the efforts of the Secretary and the Administrator to implement the implementation plan developed under subsection (b)(1)(A).

(C)

Not later than September 30, 2020, the panel established under paragraph (1) shall submit to the appropriate congressional committees, the Secretary, and the Administrator a final report on the efforts of the Secretary and the Administrator to implement the implementation plan developed under subsection (b)(1)(A), including an assessment of the effectiveness of the reform efforts under such plan and whether further action is needed.

(4)

Cooperation.— The Secretary and the Administrator shall provide to the panel established under paragraph (1) full and timely access to all information, personnel, and systems of the Department of Energy and the National Nuclear Security Administration that the panel determines necessary to carry out this subsection.

(d)

Definitions.— In this section:

(1)

Appropriate congressional committees.— The term “appropriate congressional committees” means—

(A)

the Committee on Armed Services, the Committee on Appropriations, and the Committee on Energy and Natural Resources of the Senate; and

(B)

the Committee on Armed Services, the Committee on Appropriations, and the Committee on Energy and Commerce of the House of Representatives.

(2)

Covered study.— The term “covered study” means the following:

(A)

The final report of the Congressional Advisory Panel on the Governance of the Nuclear Security Enterprise established by section 3166 of the National Defense Authorization Act for Fiscal Year 2013 (Public Law 112–239; 126 Stat. 2208).

(B)

Any other study not conducted by the Secretary or the Administrator that the Secretary determines appropriate for purposes of this section.

(3)

Nuclear security enterprise.— The term “nuclear security enterprise” has the meaning given that term in section 4002(6) of the Atomic Energy Defense Act (50 U.S.C. 2501(6)).

(e)

Rules of Construction.— Nothing in this section shall be construed to authorize any action—

(1)

in contravention of section 3220 of the National Nuclear Security Administration Act (50 U.S.C. 2410); or

(2)

that would undermine or weaken health, safety, or security.

SEC. 3138. Annual Report on Number of Full-Time Equivalent Employees and Contractor Employees.

Section 3241A of the National Nuclear Security Administration Act (50 U.S.C. 2441a) is amended by adding at the end the following new subsection:

“(f) Annual Report.—The Administrator shall include in the budget justification materials submitted to Congress in support of the budget of the Administration for each fiscal year (as submitted with the budget of the President under section 1105(a) of title 31, United States Code) a report containing the following information as of the date of the report:

“(1) The number of full-time equivalent employees of the Office of the Administrator, as counted under subsection (a).

“(2) The number of service support contracts of the Administration and whether such contracts are funded using program or program direction funds.

“(3) The number of full-time equivalent contractor employees working under each contract identified under paragraph (2).

“(4) The number of full-time equivalent contractor employees described in paragraph (3) that have been employed under such a contract for a period greater than two years.”

SEC. 3139. Development of Strategy on Risks to Nonproliferation Caused by Additive Manufacturing.

(a)

Strategy.— The President shall develop and pursue a strategy to address the risks to the goals and policies of the United States regarding nuclear nonproliferation that are caused by the increased use of additive manufacture technology (commonly referred to as “3D printing”), including such technology that does not originate in the United States.

(b)

Briefings.— Not later than March 31, 2016, and the end of each 120-day period thereafter through January 1, 2019, the President shall provide to the appropriate congressional committees a briefing on the strategy developed under subsection (a).

(c)

Pursuit of Strategy.— The President shall pursue the strategy developed under subsection (a) at the Nuclear Security Summit in Chicago, Illinois, in 2016.

(d)

Appropriate Congressional Committees Defined.— In this section, the term “appropriate congressional committees” means the following:

(1)

The congressional defense committees.

(2)

The Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate.

(3)

The Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate.

SEC. 3140. Plutonium Pit Production Capacity.

(a)

Sense of Congress.— It is the sense of Congress that—

(1)

the requirement to create a modern, responsive nuclear infrastructure that includes the capability and capacity to produce, at minimum, 50 to 80 pits per year, is a national security priority;

(2)

delaying creation of a modern, responsive nuclear infrastructure until the 2030s is an unacceptable risk to the nuclear deterrent and the national security of the United States; and

(3)

timelines for creating certain capacities for production of plutonium pits and other nuclear weapons components must be driven by the requirement to hedge against technical and geopolitical risk and not solely by the needs of life extension programs.

(b)

Briefing.—

(1)

In general.— Not later than March 1, 2016, the Chairman of the Nuclear Weapons Council established under section 179 of title 10, United States Code, in consultation with the Administrator for Nuclear Security and the Commander of the United States Strategic Command, shall provide to the congressional defense committees a briefing on the annual plutonium pit production capacity of the nuclear security enterprise (as defined in section 4002(6) of the Atomic Energy Defense Act (50 U.S.C. 2501(6))).

(2)

Elements.— The briefing under paragraph (1) shall describe the following:

(A)

The pit production capacity requirement, including the numbers of pits produced that are needed for nuclear weapons life extension programs.

(B)

The annual pit production requirement, including the numbers of pits produced, to support a responsive nuclear weapons infrastructure to hedge against technical and geopolitical risk.

SEC. 3141. Assessments on Nuclear Proliferation Risks and Nuclear Nonproliferation Opportunities.

(a)

Reports.— Not later than March 1, 2016, and each year thereafter through 2020, the Director of National Intelligence shall submit to the appropriate congressional committees a report, consistent with the provision of classified information and intelligence sources and methods, containing—

(1)

an assessment and prioritization of international nuclear proliferation risks and nuclear nonproliferation opportunities; and

(2)

an assessment of the effectiveness of various means and programs for addressing such risks and opportunities.

(b)

Appropriate Congressional Committees Defined.— In this section, the term “appropriate congressional committees” means—

(1)

the congressional defense committees;

(2)

the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate; and

(3)

the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate.

SEC. 3142. Analysis of Alternatives for Mobile Guardian Transporter Program.

(a)

Submission of Analysis of Alternatives.— Not later than 60 days after the date of the enactment of this Act, the Administrator for Nuclear Security shall submit to the congressional defense committees a report containing a full and comprehensive analysis of alternatives conducted by the Administrator for the Mobile Guardian Transporter program.

(b)

Identification in Budget Materials.— The Secretary of Energy shall include in the budget justification materials submitted to Congress in support of the Department of Energy budget (as submitted with the budget of the President under section 1105(a) of title 31, United States Code) for any fiscal year in which the Mobile Guardian Transporter program is carried out a separate, dedicated program element for such program.

TITLE XXXII Defense Nuclear Facilities Safety Board

SEC. 3201. Authorization.

There are authorized to be appropriated for fiscal year 2016, $29,150,000 for the operation of the Defense Nuclear Facilities Safety Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286 et seq.).

SEC. 3202. Administration of Defense Nuclear Facilities Safety Board.

(a)

Provision of Information to Board Members.— Section 311(c) of the Atomic Energy Act of 1954 (42 U.S.C. 2286(c)) is amended—

(1)

in paragraph (2), in the matter preceding subparagraph (A), by striking “ paragraph (5)” and inserting “ paragraphs (5), (6), and (7)”; and

(2)

by adding at the end the following new paragraph:

“(6) In carrying out paragraph (5)(B), the Chairman may not withhold from any member of the Board any information that is made available to the Chairman regarding the Board’s functions, powers, and mission (including with respect to the management and evaluation of employees of the Board).”

(b)

Senior Employees.—

(1)

Appointment and removal.— Such section 311(c), as amended by subsection (a), is further amended by adding at the end the following new paragraph:

“(7)

(A) The Chairman, subject to the approval of the Board, shall appoint the senior employees described in subparagraph (C).

“(B) The Chairman, subject to the approval of the Board, may remove a senior employee described in subparagraph (C).

“(C) The senior employees described in this subparagraph are the following senior employees of the Board:

“(i) The senior employee responsible for budgetary and general administration matters.

“(ii) The general counsel.

“(iii) The senior employee responsible for technical matters.”

(2)

Conforming amendment.— Section 313(b)(1)(A) of such Act (42 U.S.C. 2286b(b)(1)) is amended by striking “ hire” and inserting “ in accordance with section 311(c)(7), hire”.

TITLE XXXIV Naval Petroleum Reserves

SEC. 3401. Authorization of Appropriations.

(a)

Amount.— There are hereby authorized to be appropriated to the Secretary of Energy $17,500,000 for fiscal year 2016 for the purpose of carrying out activities under chapter 641 of title 10, United States Code, relating to the naval petroleum reserves.

(b)

Period of Availability.— Funds appropriated pursuant to the authorization of appropriations in subsection (a) shall remain available until expended.

TITLE XXXV Maritime Administration

SEC. 3501. Authorization of the Maritime Administration.

Funds are hereby authorized to be appropriated for fiscal year 2016, to be available without fiscal year limitation if so provided in appropriations Acts, for the use of the Department of Transportation for Maritime Administration programs associated with maintaining national security aspects of the merchant marine, as follows:

(1)

For expenses necessary for operations of the United States Merchant Marine Academy, $96,028,000, of which—

(A)

$71,306,000 shall remain available until expended for Academy operations; and

(B)

$24,722,000 shall remain available until expended for capital asset management at the Academy.

(2)

For expenses necessary to support the State maritime academies, $34,550,000, of which—

(A)

$2,400,000 shall remain available until expended for student incentive payments;

(B)

$3,000,000 shall remain available until expended for direct payments to such academies;

(C)

$1,800,000 shall remain available until expended for training ship fuel assistance payments;

(D)

$22,000,000 shall remain available until expended for maintenance and repair of State maritime academy training vessels;

(E)

$5,000,000 shall remain available until expended for the National Security Multi-Mission Vessel Design; and

(F)

$350,000 shall remain available until expended for improving the monitoring of graduates’ service obligation.

(3)

For expenses necessary to support Maritime Administration operations and programs, $54,059,000.

(4)

For expenses necessary to dispose of vessels in the National Defense Reserve Fleet, $8,000,000, to remain available until expended.

(5)

For expenses to maintain and preserve a United States-flag merchant marine to serve the national security needs of the United States under chapter 531 of title 46, United States Code, $210,000,000.

(6)

For the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))) of loan guarantees under the program authorized by chapter 537 of title 46, United States Code, $3,135,000, of which $3,135,000 shall remain available until expended for administrative expenses of the program.

SEC. 3502. Sense of Congress Regarding Maritime Security Fleet Program.

It is the sense of Congress that dedicated and enhanced support is necessary to stabilize and preserve the Maritime Security Fleet program, a program that provides the Department of Defense with on-demand access to world class, economical commercial sealift capacity, assures a United States-flag presence in international commerce, supports a pool of qualified United States merchant mariners needed to crew United States-flag vessels during times of war or national emergency, and serves as a critical component of our national security infrastructure.

SEC. 3503. Update of References to the Secretary of Transportation Regarding Unemployment Insurance and Vessel Operators.

Sections 3305 and 3306(n) of the Internal Revenue Code of 1986 are each amended by striking “ Secretary of Commerce” each place that it appears and inserting “ Secretary of Transportation”.

SEC. 3504. Payment for Maritime Security Fleet Vessels.

(a)

Per-Vessel Authorization.— Notwithstanding section 53106(a)(1)(C) of title 46, United States Code, and subject to the availability of appropriations, there is authorized to be paid to each contractor for an operating agreement (as those terms are used in that section) for fiscal year 2016, $3,500,000 for each vessel that is covered by the operating agreement.

(b)

Repeal of Other Authorization.— Section 53111(3) of title 46, United States Code, is amended by striking “ 2016,”.

SEC. 3505. Melville Hall of United States Merchant Marine Academy.

(a)

Gift to the Merchant Marine Academy.— The Maritime Administrator may accept a gift of money described in subsection (b) from the Foundation under section 51315 of title 46, United States Code, for the purpose of renovating Melville Hall on the campus of the United States Merchant Marine Academy.

(b)

Covered Gift.— A gift described in this subsection is a gift under subsection (a) that the Maritime Administrator determines exceeds the sum of—

(1)

the minimum amount that is sufficient to ensure the renovation of Melville Hall in accordance with the capital improvement plan of the United States Merchant Marine Academy that was in effect on the date of enactment of this Act; and

(2)

25 percent of the amount described in paragraph (1).

(c)

Operation Contracts.— Subject to subsection (d), in the case that the Maritime Administrator accepts a gift of money described in subsection (b), the Maritime Administrator may enter into a contract with the Foundation for the operation of Melville Hall to make available facilities for, among other possible uses, official academy functions, third-party catering functions, and industry events and conferences.

(d)

Contract Terms.— The contract described in subsection (c) shall be for such period and on such terms as the Maritime Administrator considers appropriate, including a provision, mutually agreeable to the Maritime Administrator and the Foundation, that—

(1)

requires the Foundation—

(A)

at the expense solely of the Foundation through the term of the contract to maintain Melville Hall in a condition that is as good as or better than the condition Melville Hall was in on the later of—

(i)

the date that the renovation of Melville Hall was completed; or

(ii)

the date that the Foundation accepted Melville Hall after it was tendered to the Foundation by the Maritime Administrator; and

(B)

to deposit all proceeds from the operation of Melville Hall, after expenses necessary for the operation and maintenance of Melville Hall, into the account of the Regimental Affairs Non-Appropriated Fund Instrumentality or successor entity, to be used solely for the morale and welfare of the cadets of the United States Merchant Marine Academy; and

(2)

prohibits the use of Melville Hall as lodging or an office by any person for more than 4 days in any calendar year other than—

(A)

by the United States; or

(B)

for the administration and operation of Melville Hall.

(e)

Definitions.— In this section:

(1)

Contract.— The term “contract” includes any modification, extension, or renewal of the contract.

(2)

Foundation.— The term “Foundation” means the United States Merchant Marine Academy Alumni Association and Foundation, Inc.

(f)

Rule of Construction.— Nothing in this section may be construed under section 3105 of title 41, United States Code, as requiring the Maritime Administrator to award a contract for the operation of Melville Hall to the Foundation.

SEC. 3506. Cadet Commitment Agreements.

Section 51306(a) of title 46, United States Code, is amended—

(1)

in the matter preceding paragraph (1), by striking “ must” and inserting “ shall”;

(2)

by amending paragraph (2) to read as follows:

“(2) obtain a merchant mariner license, unlimited as to horsepower or tonnage, issued by the Coast Guard as an officer in the merchant marine of the United States, accompanied by the appropriate national and international endorsements and certifications required by the Coast Guard for service aboard vessels on domestic and international voyages, without limitation, before graduation from the Academy;”

(3)

by amending paragraph (3) to read as follows:

“(3) for at least 6 years after graduation from the Academy, maintain—

“(A) a valid merchant mariner license, unlimited as to horsepower or tonnage, issued by the Coast Guard as an officer in the merchant marine of the United States, accompanied by the appropriate national and international endorsements and certifications required by the Coast Guard for service aboard vessels on domestic and international voyages, without limitation;

“(B) a valid transportation worker identification credential; and

“(C) a Coast Guard medical certificate;”

; and

(4)

by amending paragraph (4) to read as follows:

“(4) apply for, and accept if tendered, an appointment as a commissioned officer in the Navy Reserve (including the Strategic Sealift Officer Program, Navy Reserve), the Coast Guard Reserve, or any other reserve component of an armed force of the United States, and, if tendered the appointment, to serve, meet the participation requirements, and maintain active status in good standing, as determined by the program manager of the appropriate military service, for at least 8 years after the date of commissioning;”

SEC. 3507. Student Incentive Payment Agreements.

Section 51509 of title 46, United States Code, is amended—

(1)

in subsection (b)—

(A)

by inserting “ (3) Authorized uses.—” before the last sentence and indenting accordingly;

(B)

in the matter preceding paragraph (3), by striking “ Payments” and inserting “ (1) In general.—Except as provided in paragraph (2), payments” and indenting accordingly; and

(C)

by inserting after paragraph (1), the following:

“(2) Exception.—The Secretary may modify the payments made to an individual under paragraph (1), but the total amount of payments to that individual may not exceed $32,000.”

(2)

in subsection (c), by striking “ Merchant Marine Reserve” and inserting “ Strategic Sealift Officer Program”;

(3)

in subsection (d)—

(A)

by amending paragraph (2) to read as follows:

“(2) obtain a merchant mariner license, without limitation as to tonnage or horsepower, from the Coast Guard as an officer in the merchant marine of the United States, accompanied by the appropriate national and international endorsements and certification required by the Coast Guard for service aboard vessels on domestic and international voyages, without limitation, within three months of completion of the course of instruction at the academy the individual is attending;”

(B)

by amending paragraph (3) to read as follows:

“(3) for at least 6 years after graduation from the academy, maintain—

“(B) a valid transportation worker identification credential; and

“(C) a Coast Guard medical certificate;”

; and

(C)

by amending paragraph (4) to read as follows:

“(4) apply for, and accept, if tendered, an appointment as a commissioned officer in the Navy Reserve (including the Strategic Sealift Officer Program, Navy Reserve), the Coast Guard Reserve, or any other reserve component of an armed force of the United States, and, if tendered the appointment, to serve and meet the participation requirements and to maintain active status in good standing, as determined by the program manager of the appropriate military service, for at least 8 years after the date of commissioning;”

(4)

by amending subsection (e)(1) to read as follows:

“(1) Active duty.—

“(A) In general.—The Secretary of Defense may order an individual to serve on active duty in the armed forces of the United States for a period of not more than 2 years if—

“(i) the individual has attended an academy under this section for more than 2 academic years, but less than 3 academic years;

“(ii) the individual has accepted the payments described in subsection (b) in an amount totaling at least $8,000; and

“(iii) the Secretary of Transportation has determined that the individual has failed to fulfill the part of the agreement described in subsection (d)(1).

“(B) 3 or more years.—The Secretary of Defense may order an individual to serve on active duty in the armed forces of the United States for a period of not more than 3 years if—

“(i) the individual has attended an academy under this section for 3 or more academic years;

“(ii) the individual has accepted the payments described in subsection (b) in an amount totaling at least $16,000; and

“(iii) the Secretary of Transportation has determined that the individual has failed to fulfill the part of the agreement described in subsection (d)(1).

“(C) Hardship waiver.—In cases of hardship as determined by the Secretary of Transportation, the Secretary of Transportation may waive this paragraph in whole or in part.”

; and

(5)

by adding at the end the following:

“(h) Alternative Service.—

“(1) Service as commissioned officer.—An individual who, for the 5-year period following graduation from an academy, serves as a commissioned officer on active duty in an armed force of the United States or as a commissioned officer of the National Oceanic and Atmospheric Administration or the Public Health Service shall be excused from the requirements of paragraphs (3) through (5) of subsection (d).

“(2) Modification or waiver.—The Secretary may modify or waive any of the terms and conditions set forth in subsection (d) through the imposition of alternative service requirements.”

SEC. 3508. Short Sea Transportation Defined.

Paragraph (1) of section 55605 of title 46, United States Code, is amended—

(1)

in subparagraph (A), by striking “ or”;

(2)

in subparagraph (B), by striking “ and”; and

(3)

by adding at the end the following:

“(C) shipped in discrete units or packages that are handled individually, palletized, or unitized for purposes of transportation; or

“(D) freight vehicles carried aboard commuter ferry boats; and”