109th CONGRESS
2d Session
S. 3879
To implement the Convention on Supplementary Compensation for Nuclear
Damage, and for other purposes.
IN THE SENATE OF THE UNITED STATES
September 8, 2006
Mr. INHOFE introduced the following bill; which was read twice and referred
to the Committee on Environment and Public Works
A BILL
To implement the Convention on Supplementary Compensation for Nuclear
Damage, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Convention on Supplementary Compensation for
Nuclear Damage Contingent Cost Allocation Act'.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings- Congress finds that--
(1) section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) (commonly
known as the `Price-Anderson Act')--
(A) provides a predictable legal framework necessary for nuclear projects;
and
(B) ensures prompt and equitable compensation in the event of a nuclear
incident in the United States;
(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;
(3) the Convention on Supplementary Compensation for Nuclear Damage, done
at Vienna on September 12, 1997, will establish a global system--
(A) to provide a predictable legal framework necessary for nuclear energy
projects; and
(B) to ensure prompt and equitable compensation in the event of a nuclear
incident;
(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;
(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;
(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;
(7) the cost of those benefits is the obligation of the United States
to contribute to the supplementary compensation fund established by the
Convention;
(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;
(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; and
(10) with respect to a nuclear incident 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.
(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--
(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; and
(2) with respect to a covered incident 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.
SEC. 3. DEFINITIONS.
(1) COMMISSION- The term `Commission' means the Nuclear Regulatory Commission.
(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.
(3) CONVENTION- The term `Convention' means the Convention on Supplementary
Compensation for Nuclear Damage, done at Vienna on September 12, 1997.
(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.
(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.
(A) IN GENERAL- The term `covered person' means--
(i) a United States person; and
(ii) an individual or entity (including an agency or instrumentality
of a foreign country) that--
(I) is located in the United States; or
(II) carries out an activity in the United States.
(B) EXCLUSIONS- The term `covered person' does not include--
(i) the United States; or
(ii) any agency or instrumentality of the United States.
(7) NUCLEAR SUPPLIER- The term `nuclear supplier' means a covered person
(or a successor in interest of a covered person) that--
(A) supplies facilities, equipment, fuel, services, or technology pertaining
to the design, construction, operation, or decommissioning of a covered
installation; or
(B) transports nuclear materials that could result in a covered incident.
(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)).
(9) SECRETARY- The term `Secretary' means the Secretary of Energy.
(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).
(B) INCLUSIONS- The term `United States' includes--
(i) the Commonwealth of Puerto Rico;
(ii) any other territory or possession of the United States;
(iii) the Canal Zone; and
(iv) the waters of the United States territorial sea under Presidential
Proclamation Number 5928, dated December 27, 1988 (43 U.S.C. 1331
note).
(11) UNITED STATES PERSON- The term `United States person' means--
(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); and
(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.
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.
(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)).
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.
(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--
(1) the amount of funds made available for the Price-Anderson incident
under Article VII of the Convention; and
(2) the amount of funds used under section 4 to cover the contingent cost
resulting from the Price-Anderson incident.
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
that is not a Price-Anderson incident.
(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.
(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).
(3) RISK-INFORMED ASSESSMENT FORMULA-
(A) IN GENERAL- 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--
(i) the nature and intended purpose of the goods and services supplied
by each nuclear supplier to each covered installation;
(ii) the quantity of the goods and services supplied by each nuclear
supplier to each covered installation;
(iii) the hazards associated with the supplied goods and services
if the goods and services fail to achieve the intended purposes;
(iv) the hazards associated with the covered installation to which
the goods and services are supplied;
(v) the legal, regulatory, and financial infrastructure associated
with the covered installation to which the goods and services are
supplied; and
(vi) the hazards associated with particular forms of transportation.
(B) FACTORS FOR CONSIDERATION- In determining the formula, the Secretary
may--
(I) goods and services with negligible risk;
(II) classes of goods and services not intended specifically for
use in a nuclear installation;
(III) a nuclear supplier with a de minimis share of the contingent
cost; and
(IV) a nuclear supplier no longer in existence for which there is
no identifiable successor; and
(ii) establish the period on which the risk assessment is based.
(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).
SEC. 7. REPORTING.
(a) Collection of Information-
(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).
(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).
(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.
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--
(1) specifically refers to this Act; and
(2) explicitly repeals, alters, amends, modifies, impairs, displaces,
or supersedes the effect of this section.
SEC. 9. PAYMENTS TO AND BY THE UNITED STATES.
(a) Action by Nuclear Suppliers-
(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.
(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).
(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).
(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.
(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.
(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.
(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--
(1) the amount of the payment due from the nuclear supplier;
(2) any applicable interest on the payment; and
(3) a penalty of not more than twice the amount of the deferred payment
due from the nuclear supplier.
SEC. 10. LIMITATION ON JUDICIAL REVIEW; CAUSE OF ACTION.
(a) Limitation on Judicial Review-
(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.
(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.
(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.
(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.
(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.
SEC. 11. RIGHT OF RECOURSE.
This Act does not provide to an operator of a covered installation any right
of recourse under the Convention.
SEC. 12. PROTECTION OF SENSITIVE UNITED STATES INFORMATION.
Nothing in the Convention or this Act requires the disclosure of--
(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));
(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));
or
(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).
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.
(b) Requirement- Rules prescribed under this section shall ensure, to the
maximum extent practicable, that--
(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; and
(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.
(c) Applicability of Provision- Section 553 of title 5, United States Code,
shall apply with respect to the promulgation of regulations under this section.
(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.
SEC. 14. EFFECTIVE DATE.
This Act takes effect on the date on which the Convention enters into force
for the United States under Article XX of the Convention.
END
