S 1653 ISCommentsClose CommentsPermalink

To implement the Convention on Supplementary Compensation for Nuclear Damage, and for other purposes.CommentsClose CommentsPermalink

June 19, 2007

Mr. INHOFE (for himself, Mr. CARPER, and Mr. VOINOVICH) introduced the following bill; which was read twice and referred to the Committee on Environment and Public WorksCommentsClose CommentsPermalink

To implement the Convention on Supplementary Compensation for Nuclear Damage, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the `Convention on Supplementary Compensation for Nuclear Damage Contingent Cost Allocation Act'.CommentsClose CommentsPermalink

SEC. 2. FINDINGS AND PURPOSE.

(a) Findings- Congress finds that--CommentsClose CommentsPermalink





(1) section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) (commonly known as the `Price-Anderson Act')--CommentsClose CommentsPermalink





(A) provides a predictable legal framework necessary for nuclear projects; andCommentsClose CommentsPermalink





(B) ensures prompt and equitable compensation in the event of a nuclear incident in the United States;CommentsClose CommentsPermalink





(2) section 170 of that Act, in effect, provides operators of nuclear powerplants with insurance for damage arising out of a nuclear incident and funds the insurance primarily through the assessment of a retrospective premium from each operator after the occurrence of a nuclear incident;CommentsClose CommentsPermalink





(3) the Convention on Supplementary Compensation for Nuclear Damage, done at Vienna on September 12, 1997, will establish a global system--CommentsClose CommentsPermalink





(A) to provide a predictable legal framework necessary for nuclear energy projects; andCommentsClose CommentsPermalink





(B) to ensure prompt and equitable compensation in the event of a nuclear incident;CommentsClose CommentsPermalink





(4) the Convention benefits United States nuclear suppliers that face potentially unlimited liability for a nuclear incidents outside the coverage of section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) by replacing a potentially open-ended liability with a predictable liability regime that, in effect, provides nuclear suppliers with insurance for damage arising out of such an incident;CommentsClose CommentsPermalink





(5) the Convention also benefits United States nuclear facility operators that may be publicly liable for a Price-Anderson incident by providing an additional early source for a Price-Anderson incident by providing an additional early source of funds to compensate damage arising out of the Price-Anderson incident;CommentsClose CommentsPermalink





(6) the combined operation of the Convention, section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210), and this Act will augment the quantity of assured funds available for victims in a wider variety of nuclear incidents while reducing the potential liability of United States suppliers without increasing potential costs to United States operators;CommentsClose CommentsPermalink





(7) the cost of those benefits is the obligation of the United States to contribute to the supplementary compensation fund established by the Convention;CommentsClose CommentsPermalink





(8) any such contribution should be funded in a manner that neither upsets settled expectations based on the liability regime established under section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) nor shifts to Federal taxpayers liability risks for nuclear incidents at foreign installations;CommentsClose CommentsPermalink





(9) with respect to a Price-Anderson incident, funds already available under section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) should be used; andCommentsClose CommentsPermalink





(10) with respect to a nuclear incident outside the United States not covered by section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210), a retrospective premium should be prorated among nuclear suppliers relieved from potential liability for which insurance is not available.CommentsClose CommentsPermalink





(b) Purpose- The purpose of this Act is to allocate the contingent costs associated with participation by the United States in the international nuclear liability compensation system established by the Convention on Supplementary Compensation for Nuclear Damage, done at Vienna on September 12, 1997--CommentsClose CommentsPermalink





(1) with respect to a Price-Anderson incident, by using funds made available under section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) to cover the contingent costs in a manner that neither increases the burdens nor decreases the benefits under section 170 of that Act; andCommentsClose CommentsPermalink





(2) with respect to a covered incident outside the United States that is not a Price-Anderson incident, by allocating the contingent costs equitably, on the basis of risk, among the class of nuclear suppliers relieved by the Convention from the risk of potential liability resulting from any covered incident outside the United States.CommentsClose CommentsPermalink

SEC. 3. DEFINITIONS.

In this Act:CommentsClose CommentsPermalink





(1) COMMISSION- The term `Commission' means the Nuclear Regulatory Commission.CommentsClose CommentsPermalink





(2) CONTINGENT COST- The term `contingent cost' means the cost to the United States in the event of a covered incident the amount of which is equal to the amount of funds the United States is obligated to make available under paragraph 1(b) of Article III of the Convention.CommentsClose CommentsPermalink





(3) CONVENTION- The term `Convention' means the Convention on Supplementary Compensation for Nuclear Damage, done at Vienna on September 12, 1997.CommentsClose CommentsPermalink





(4) COVERED INCIDENT- The term `covered incident' means a nuclear incident the occurrence of which results in a request for funds pursuant to Article VII of the Convention.CommentsClose CommentsPermalink





(5) COVERED INSTALLATION- The term `covered installation' means a nuclear installation at which the occurrence of a nuclear incident could result in a request for funds under Article VII of the Convention.CommentsClose CommentsPermalink





(6) COVERED PERSON-CommentsClose CommentsPermalink





(A) IN GENERAL- The term `covered person' means--CommentsClose CommentsPermalink





(i) a United States person; andCommentsClose CommentsPermalink





(ii) an individual or entity (including an agency or instrumentality of a foreign country) that--CommentsClose CommentsPermalink





(I) is located in the United States; orCommentsClose CommentsPermalink





(II) carries out an activity in the United States.CommentsClose CommentsPermalink





(B) EXCLUSIONS- The term `covered person' does not include--CommentsClose CommentsPermalink





(i) the United States; orCommentsClose CommentsPermalink





(ii) any agency or instrumentality of the United States.CommentsClose CommentsPermalink





(7) NUCLEAR SUPPLIER- The term `nuclear supplier' means a covered person (or a successor in interest of a covered person) that--CommentsClose CommentsPermalink





(A) supplies facilities, equipment, fuel, services, or technology pertaining to the design, construction, operation, or decommissioning of a covered installation; orCommentsClose CommentsPermalink





(B) transports nuclear materials that could result in a covered incident.CommentsClose CommentsPermalink





(8) PRICE-ANDERSON INCIDENT- The term `Price-Anderson incident' means a covered incident for which section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) would make funds available to compensate for public liability (as defined in section 11 of that Act (42 U.S.C. 2014)).CommentsClose CommentsPermalink





(9) SECRETARY- The term `Secretary' means the Secretary of Energy.CommentsClose CommentsPermalink





(10) UNITED STATES-CommentsClose CommentsPermalink





(A) IN GENERAL- The term `United States' has the meaning given the term in section 11 of the Atomic Energy Act of 1954 (42 U.S.C. 2014).CommentsClose CommentsPermalink





(B) INCLUSIONS- The term `United States' includes--CommentsClose CommentsPermalink





(i) the Commonwealth of Puerto Rico;CommentsClose CommentsPermalink





(ii) any other territory or possession of the United States;CommentsClose CommentsPermalink





(iii) the Canal Zone; andCommentsClose CommentsPermalink





(iv) the waters of the United States territorial sea under Presidential Proclamation Number 5928, dated December 27, 1988 (43 U.S.C. 1331 note).CommentsClose CommentsPermalink





(11) UNITED STATES PERSON- The term `United States person' means--CommentsClose CommentsPermalink





(A) any individual who is a resident, national, or citizen of the United States (other than an individual residing outside of the United States and employed by a person who is not a United States person); andCommentsClose CommentsPermalink





(B) any corporation, partnership, association, joint stock company, business trust, unincorporated organization, or sole proprietorship that is organized under the laws of the United States.CommentsClose CommentsPermalink

SEC. 4. USE OF PRICE-ANDERSON FUNDS.

(a) In General- Funds made available under section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) shall be used to cover the contingent cost resulting from any Price-Anderson incident.CommentsClose CommentsPermalink





(b) Effect- The use of funds pursuant to subsection (a) shall not reduce the limitation on public liability established under section 170 e. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(e)).CommentsClose CommentsPermalink

SEC. 5. EFFECT ON AMOUNT OF PUBLIC LIABILITY.

(a) In General- Funds made available to the United States under Article VII of the Convention with respect to a Price-Anderson incident shall be used to satisfy public liability resulting from the Price-Anderson incident.CommentsClose CommentsPermalink





(b) Amount- The amount of public liability allowable under section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) relating to a Price-Anderson incident under subsection (a) shall be increased by an amount equal to the difference between--CommentsClose CommentsPermalink





(1) the amount of funds made available for the Price-Anderson incident under Article VII of the Convention; andCommentsClose CommentsPermalink





(2) the amount of funds used under section 4 to cover the contingent cost resulting from the Price-Anderson incident.CommentsClose CommentsPermalink

SEC. 6. RETROSPECTIVE RISK POOLING PROGRAM.

(a) In General- Except as provided in subsection (b), each nuclear supplier shall participate in a retrospective risk pooling program in accordance with this Act to cover the contingent cost resulting from a covered incident outside the United States that is not a Price-Anderson incident.CommentsClose CommentsPermalink





(b) Deferred Payment-CommentsClose CommentsPermalink





(1) IN GENERAL- The obligation of a nuclear supplier to participate in the retrospective risk pooling program shall be deferred until the United States is called on to provide funds pursuant to Article VII of the Convention with respect to a covered incident that is not a Price-Anderson incident.CommentsClose CommentsPermalink





(2) AMOUNT OF DEFERRED PAYMENT- The amount of a deferred payment of a nuclear supplier under paragraph (1) shall be based on the risk-informed assessment formula determined under paragraph (3).CommentsClose CommentsPermalink





(3) RISK-INFORMED ASSESSMENT FORMULA-CommentsClose CommentsPermalink





(A) IN GENERAL- Not later than 3 years after the date of enactment of this Act, and every 5 years thereafter, the Secretary shall, by regulation, determine the risk-informed assessment formula for the allocation among nuclear suppliers of the contingent cost resulting from a covered incident that is not a Price-Anderson incident, taking into account risk factors such as--CommentsClose CommentsPermalink





(i) the nature and intended purpose of the goods and services supplied by each nuclear supplier to each covered installation outside the United States;CommentsClose CommentsPermalink





(ii) the quantity of the goods and services supplied by each nuclear supplier to each covered installation outside the United States;CommentsClose CommentsPermalink





(iii) the hazards associated with the supplied goods and services if the goods and services fail to achieve the intended purposes;CommentsClose CommentsPermalink





(iv) the hazards associated with the covered installation outside the United States to which the goods and services are supplied;CommentsClose CommentsPermalink





(v) the legal, regulatory, and financial infrastructure associated with the covered installation outside the United States to which the goods and services are supplied; andCommentsClose CommentsPermalink





(vi) the hazards associated with particular forms of transportation.CommentsClose CommentsPermalink





(B) FACTORS FOR CONSIDERATION- In determining the formula, the Secretary may--CommentsClose CommentsPermalink





(i) exclude--CommentsClose CommentsPermalink





(I) goods and services with negligible risk;CommentsClose CommentsPermalink





(II) classes of goods and services not intended specifically for use in a nuclear installation;CommentsClose CommentsPermalink





(III) a nuclear supplier with a de minimis share of the contingent cost; andCommentsClose CommentsPermalink





(IV) a nuclear supplier no longer in existence for which there is no identifiable successor; andCommentsClose CommentsPermalink





(ii) establish the period on which the risk assessment is based.CommentsClose CommentsPermalink





(C) APPLICATION- In applying the formula, the Secretary shall not consider any covered installation or transportation for which funds would be available under section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210).CommentsClose CommentsPermalink





(D) REPORT- Not later than 5 years after the date of enactment of this Act and every 5 years thereafter, the Secretary shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Energy and Commerce of the House of Representatives a report on whether there is a need for continuation or amendment of this Act, taking into account the effects of the implementation of the Convention on the United States nuclear industry and suppliers.CommentsClose CommentsPermalink

SEC. 7. REPORTING.

(a) Collection of Information-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary may collect information necessary for developing and implementing the formula for calculating the deferred payment of a nuclear supplier under section 6(b).CommentsClose CommentsPermalink





(2) PROVISION OF INFORMATION- Each nuclear supplier and other appropriate persons shall make available to the Secretary such information, reports, records, documents, and other data as the Secretary determines, by regulation, to be necessary or appropriate to develop and implement the formula under section 6(b)(3).CommentsClose CommentsPermalink





(b) Private Insurance- The Secretary shall make available to nuclear suppliers, and insurers of nuclear suppliers, information to support the voluntary establishment and maintenance of private insurance against any risk for which nuclear suppliers may be required to pay deferred payments under this Act.CommentsClose CommentsPermalink

SEC. 8. EFFECT ON LIABILITY.

Nothing in any other law (including regulations) limits liability for a covered incident to an amount equal to less than the amount prescribed in paragraph 1(a) of Article IV of the Convention, unless the law--CommentsClose CommentsPermalink





(1) specifically refers to this Act; andCommentsClose CommentsPermalink





(2) explicitly repeals, alters, amends, modifies, impairs, displaces, or supersedes the effect of this section.CommentsClose CommentsPermalink

SEC. 9. PAYMENTS TO AND BY THE UNITED STATES.

(a) Action by Nuclear Suppliers-CommentsClose CommentsPermalink





(1) NOTIFICATION- In the case of a request for funds under Article VII of the Convention resulting from a covered incident that is not a Price-Anderson incident, the Secretary shall notify each nuclear supplier of the amount of the deferred payment required to be made by the nuclear supplier.CommentsClose CommentsPermalink





(2) PAYMENTS-CommentsClose CommentsPermalink





(A) IN GENERAL- Except as provided in subparagraph (B), not later than 60 days after receipt of a notification under paragraph (1), a nuclear supplier shall pay to the general fund of the Treasury the deferred payment of the nuclear supplier required under paragraph (1).CommentsClose CommentsPermalink





(B) ANNUAL PAYMENTS- A nuclear supplier may elect to prorate payment of the deferred payment required under paragraph (1) in 5 equal annual payments (including interest on the unpaid balance at the prime rate prevailing at the time the first payment is due).CommentsClose CommentsPermalink





(3) VOUCHERS- A nuclear supplier shall submit payment certification vouchers to the Secretary of the Treasury in accordance with section 3325 of title 31, United States Code.CommentsClose CommentsPermalink





(b) Use of Funds-CommentsClose CommentsPermalink





(1) IN GENERAL- Amounts paid into the Treasury under subsection (a) shall be available to the Secretary of the Treasury, without further appropriation and without fiscal year limitation, for the purpose of making the contributions of public funds required to be made by the United States under the Convention.CommentsClose CommentsPermalink





(2) ACTION BY SECRETARY OF TREASURY- The Secretary of the Treasury shall pay the contribution required under the Convention to the court of competent jurisdiction under Article XIII of the Convention with respect to the applicable covered incident.CommentsClose CommentsPermalink





(c) Failure To Pay- If a nuclear supplier fails to make a payment required under this section, the Secretary may take appropriate action to recover from the nuclear supplier--CommentsClose CommentsPermalink





(1) the amount of the payment due from the nuclear supplier;CommentsClose CommentsPermalink





(2) any applicable interest on the payment; andCommentsClose CommentsPermalink





(3) a penalty of not more than twice the amount of the deferred payment due from the nuclear supplier.CommentsClose CommentsPermalink

SEC. 10. LIMITATION ON JUDICIAL REVIEW; CAUSE OF ACTION.

(a) Limitation on Judicial Review-CommentsClose CommentsPermalink





(1) IN GENERAL- In any civil action arising under the Convention over which Article XIII of the Convention grants jurisdiction to the courts of the United States, any appeal or review by writ of mandamus or otherwise with respect to a nuclear incident that is not a Price-Anderson incident shall be in accordance with chapter 83 of title 28, United States Code, except that the appeal or review shall occur in the United States Court of Appeals for the District of Columbia Circuit.CommentsClose CommentsPermalink





(2) SUPREME COURT JURISDICTION- Nothing in this subsection affects the jurisdiction of the Supreme Court of the United States under chapter 81 of title 28, United States Code.CommentsClose CommentsPermalink





(b) Cause of Action-CommentsClose CommentsPermalink





(1) IN GENERAL- Subject to paragraph (2), in any civil action arising under the Convention over which Article XIII of the Convention grants jurisdiction to the courts of the United States, in addition to any other cause of action that may exist, an individual or entity shall have a cause of action against the operator to recover for nuclear damage suffered by the individual or entity.CommentsClose CommentsPermalink





(2) REQUIREMENT- Paragraph (1) shall apply only if the individual or entity seeks a remedy for nuclear damage (as defined in Article I of the Convention) that was caused by a nuclear incident (as defined in Article I of the Convention) that is not a Price-Anderson incident.CommentsClose CommentsPermalink





(3) EFFECT OF SUBSECTION- Nothing in this subsection limits, modifies, extinguishes, or otherwise affects any cause of action that would have existed in the absence of enactment of this subsection.CommentsClose CommentsPermalink

SEC. 11. RIGHT OF RECOURSE.

This Act does not provide to an operator of a covered installation any right of recourse under the Convention.CommentsClose CommentsPermalink

SEC. 12. PROTECTION OF SENSITIVE UNITED STATES INFORMATION.

Nothing in the Convention or this Act requires the disclosure of--CommentsClose CommentsPermalink





(1) any data that, at any time, was Restricted Data (as defined in section 11 of the Atomic Energy Act of 1954 (42 U.S.C. 2014));CommentsClose CommentsPermalink





(2) information relating to intelligence sources or methods protected by section 102A(i) of the National Security Act of 1947 (50 U.S.C. 403-1(i)); orCommentsClose CommentsPermalink





(3) national security information classified under Executive Order 12958 (50 U.S.C. 435 note; relating to classified national security information) (or a successor regulation).CommentsClose CommentsPermalink

SEC. 13. REGULATIONS.

(a) In General- The Secretary or the Commission, as appropriate, may prescribe regulations to carry out section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) and this Act.CommentsClose CommentsPermalink





(b) Requirement- Rules prescribed under this section shall ensure, to the maximum extent practicable, that--CommentsClose CommentsPermalink





(1) the implementation of section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) and this Act is consistent and equitable; andCommentsClose CommentsPermalink





(2) the financial and operational burden on a Commission licensee in complying with section 170 of that Act is not greater as a result of the enactment of this Act.CommentsClose CommentsPermalink





(c) Applicability of Provision- Section 553 of title 5, United States Code, shall apply with respect to the promulgation of regulations under this section.CommentsClose CommentsPermalink





(d) Effect of Section- The authority provided under this section is in addition to, and does not impair or otherwise affect, any other authority of the Secretary or the Commission to prescribe regulations.CommentsClose CommentsPermalink

SEC. 14. EFFECTIVE DATE.

This Act takes effect on the date of enactment of this Act.CommentsClose CommentsPermalink