United States Code (Last Updated: May 24, 2014) |
Title 42. THE PUBLIC HEALTH AND WELFARE |
Chapter 23. DEVELOPMENT AND CONTROL OF ATOMIC ENERGY |
Division A. Atomic Energy |
SubChapter XIII. GENERAL AUTHORITY OF COMMISSION |
§ 2210. Indemnification and limitation of liability
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(a) Requirement of financial protection for licensees Each license issued under section 2133 or 2134 of this title and each construction permit issued under section 2235 of this title shall, and each license issued under section 2073, 2093, or 2111 of this title may, for the public purposes cited in section 2012(i) of this title, have as a condition of the license a requirement that the licensee have and maintain financial protection of such type and in such amounts as the Nuclear Regulatory Commission (in this section referred to as the “Commission”) in the exercise of its licensing and regulatory authority and responsibility shall require in accordance with subsection (b) of this section to cover public liability claims. Whenever such financial protection is required, it may be a further condition of the license that the licensee execute and maintain an indemnification agreement in accordance with subsection (c) of this section. The Commission may require, as a further condition of issuing a license, that an applicant waive any immunity from public liability conferred by Federal or State law.
(b) Amount and type of financial protection for licensees (1) The amount of primary financial protection required shall be the amount of liability insurance available from private sources, except that the Commission may establish a lesser amount on the basis of criteria set forth in writing, which it may revise from time to time, taking into consideration such factors as the following: (A) the cost and terms of private insurance, (B) the type, size, and location of the licensed activity and other factors pertaining to the hazard, and (C) the nature and purpose of the licensed activity: Provided, That for facilities designed for producing substantial amounts of electricity and having a rated capacity of 100,000 electrical kilowatts or more, the amount of primary financial protection required shall be the maximum amount available at reasonable cost and on reasonable terms from private sources (excluding the amount of private liability insurance available under the industry retrospective rating plan required in this subsection). Such primary financial protection may include private insurance, private contractual indemnities, self-insurance, other proof of financial responsibility, or a combination of such measures and shall be subject to such terms and conditions as the Commission may, by rule, regulation, or order, prescribe. The Commission shall require licensees that are required to have and maintain primary financial protection equal to the maximum amount of liability insurance available from private sources to maintain, in addition to such primary financial protection, private liability insurance available under an industry retrospective rating plan providing for premium charges deferred in whole or major part until public liability from a nuclear incident exceeds or appears likely to exceed the level of the primary financial protection required of the licensee involved in the nuclear incident: Provided, That such insurance is available to, and required of, all of the licensees of such facilities without regard to the manner in which they obtain other types or amounts of such primary financial protection: And provided further, That the maximum amount of the standard deferred premium that may be charged a licensee following any nuclear incident under such a plan shall not be more than $95,800,000 (subject to adjustment for inflation under subsection (t) of this section), but not more than $15,000,000 in any 1 year (subject to adjustment for inflation under subsection (t) of this section), for each facility for which such licensee is required to maintain the maximum amount of primary financial protection: And provided further, That the amount which may be charged a licensee following any nuclear incident shall not exceed the licensee’s pro rata share of the aggregate public liability claims and costs (excluding legal costs subject to subsection (o)(1)(D) of this section, payment of which has not been authorized under such subsection) arising out of the nuclear incident. Payment of any State premium taxes which may be applicable to any deferred premium provided for in this chapter shall be the responsibility of the licensee and shall not be included in the retrospective premium established by the Commission. (2) (A) The Commission may, on a case by case basis, assess annual deferred premium amounts less than the standard annual deferred premium amount assessed under paragraph (1)— (i) for any facility, if more than one nuclear incident occurs in any one calendar year; or (ii) for any licensee licensed to operate more than one facility, if the Commission determines that the financial impact of assessing the standard annual deferred premium amount under paragraph (1) would result in undue financial hardship to such licensee or the ratepayers of such licensee. (B) In the event that the Commission assesses a lesser annual deferred premium amount under subparagraph (A), the Commission shall require payment of the difference between the standard annual deferred premium assessment under paragraph (1) and any such lesser annual deferred premium assessment within a reasonable period of time, with interest at a rate determined by the Secretary of the Treasury on the basis of the current average market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the date that the standard annual deferred premium assessment under paragraph (1) would become due. (3) The Commission shall establish such requirements as are necessary to assure availability of funds to meet any assessment of deferred premiums within a reasonable time when due, and may provide reinsurance or shall otherwise guarantee the payment of such premiums in the event it appears that the amount of such premiums will not be available on a timely basis through the resources of private industry and insurance. Any agreement by the Commission with a licensee or indemnitor to guarantee the payment of deferred premiums may contain such terms as the Commission deems appropriate to carry out the purposes of this section and to assure reimbursement to the Commission for its payments made due to the failure of such licensee or indemnitor to meet any of its obligations arising under or in connection with financial protection required under this subsection including without limitation terms creating liens upon the licensed facility and the revenues derived therefrom or any other property or revenues of such licensee to secure such reimbursement and consent to the automatic revocation of any license. (4) (A) In the event that the funds available to pay valid claims in any year are insufficient as a result of the limitation on the amount of deferred premiums that may be required of a licensee in any year under paragraph (1) or (2), or the Commission is required to make reinsurance or guaranteed payments under paragraph (3), the Commission shall, in order to advance the necessary funds— (i) request the Congress to appropriate sufficient funds to satisfy such payments; or (ii) to the extent approved in appropriation Acts, issue to the Secretary of the Treasury obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions as may be agreed to by the Commission and the Secretary of the Treasury. (B) Except for funds appropriated for purposes of making reinsurance or guaranteed payments under paragraph (3), any funds appropriated under subparagraph (A)(i) shall be repaid to the general fund of the United States Treasury from amounts made available by standard deferred premium assessments, with interest at a rate determined by the Secretary of the Treasury on the basis of the current average market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the date that the funds appropriated under such subparagraph are made available. (C) Except for funds appropriated for purposes of making reinsurance or guaranteed payments under paragraph (3), redemption of obligations issued under subparagraph (A)(ii) shall be made by the Commission from amounts made available by standard deferred premium assessments. Such obligations shall bear interest at a rate determined by the Secretary of the Treasury by taking into consideration the average market yield on outstanding marketable obligations to the United States of comparable maturities during the month preceding the issuance of the obligations under this paragraph. The Secretary of the Treasury shall purchase any issued obligations, and for such purpose the Secretary of the Treasury may use as a public debt transaction the proceeds from the sale of any securities issued under chapter 31 of title 31, and the purposes for which securities may be issued under such chapter are extended to include any purchase of such obligations. The Secretary of the Treasury may at any time sell any of the obligations acquired by the Secretary of the Treasury under this paragraph. All redemptions, purchases, and sales by the Secretary of the Treasury of obligations under this paragraph shall be treated as public debt transactions of the United States. (5) (A) For purposes of this section only, the Commission shall consider a combination of facilities described in subparagraph (B) to be a single facility having a rated capacity of 100,000 electrical kilowatts or more. (B) A combination of facilities referred to in subparagraph (A) is two or more facilities located at a single site, each of which has a rated capacity of 100,000 electrical kilowatts or more but not more than 300,000 electrical kilowatts, with a combined rated capacity of not more than 1,300,000 electrical kilowatts. (c) Indemnification of licensees by Nuclear Regulatory Commission The Commission shall, with respect to licenses issued between
August 30, 1954 , andDecember 31, 2025 , for which it requires financial protection of less than $560,000,000, agree to indemnify and hold harmless the licensee and other persons indemnified, as their interest may appear, from public liability arising from nuclear incidents which is in excess of the level of financial protection required of the licensee. The aggregate indemnity for all persons indemnified in connection with each nuclear incident shall not exceed $500,000,000 excluding costs of investigating and settling claims and defending suits for damage: Provided, however, That this amount of indemnity shall be reduced by the amount that the financial protection required shall exceed $60,000,000. Such a contract of indemnification shall cover public liability arising out of or in connection with the licensed activity. With respect to any production or utilization facility for which a construction permit is issued betweenAugust 30, 1954 , andDecember 31, 2025 , the requirements of this subsection shall apply to any license issued for such facility subsequent toDecember 31, 2025 .(d) Indemnification of contractors by Department of Energy (1) (A) In addition to any other authority the Secretary of Energy (in this section referred to as the “Secretary”) may have, the Secretary shall, until December 31, 2025 , enter into agreements of indemnification under this subsection with any person who may conduct activities under a contract with the Department of Energy that involve the risk of public liability and that are not subject to financial protection requirements under subsection (b) of this section or agreements of indemnification under subsection (c) or (k) of this section.(B) (i) (I) Beginning 60 days after August 20, 1988 , agreements of indemnification under subparagraph (A) shall be the exclusive means of indemnification for public liability arising from activities described in such subparagraph, including activities conducted under a contract that contains an indemnification clause under Public Law 85–804 [50 U.S.C. 1431 et seq.] entered into betweenAugust 1, 1987 , andAugust 20, 1988 .(II) The Secretary may incorporate in agreements of indemnification under subparagraph (A) the provisions relating to the waiver of any issue or defense as to charitable or governmental immunity authorized in subsection (n)(1) of this section to be incorporated in agreements of indemnification. Any such provisions incorporated under this subclause shall apply to any nuclear incident arising out of nuclear waste activities subject to an agreement of indemnification under subparagraph (A). (ii) Public liability arising out of nuclear waste activities subject to an agreement of indemnification under subparagraph (A) that are funded by the Nuclear Waste Fund established in section 10222 of this title shall be compensated from the Nuclear Waste Fund in an amount not to exceed the maximum amount of financial protection required of licensees under subsection (b) of this section. (2) In an agreement of indemnification entered into under paragraph (1), the Secretary— (A) may require the contractor to provide and maintain financial protection of such a type and in such amounts as the Secretary shall determine to be appropriate to cover public liability arising out of or in connection with the contractual activity; and (B) shall indemnify the persons indemnified against such liability above the amount of the financial protection required, in the amount of $10,000,000,000 (subject to adjustment for inflation under subsection (t) of this section), in the aggregate, for all persons indemnified in connection with the contract and for each nuclear incident, including such legal costs of the contractor as are approved by the Secretary. (3) All agreements of indemnification under which the Department of Energy (or its predecessor agencies) may be required to indemnify any person under this section shall be deemed to be amended, on August 8, 2005 , to reflect the amount of indemnity for public liability and any applicable financial protection required of the contractor under this subsection.(4) Financial protection under paragraph (2) and indemnification under paragraph (1) shall be the exclusive means of financial protection and indemnification under this section for any Department of Energy demonstration reactor licensed by the Commission under section 5842 of this title. (5) In the case of nuclear incidents occurring outside the United States, the amount of the indemnity provided by the Secretary under this subsection shall not exceed $500,000,000. (6) The provisions of this subsection may be applicable to lump sum as well as cost type contracts and to contracts and projects financed in whole or in part by the Secretary. (7) A contractor with whom an agreement of indemnification has been executed under paragraph (1)(A) and who is engaged in activities connected with the underground detonation of a nuclear explosive device shall be liable, to the extent so indemnified under this subsection, for injuries or damage sustained as a result of such detonation in the same manner and to the same extent as would a private person acting as principal, and no immunity or defense founded in the Federal, State, or municipal character of the contractor or of the work to be performed under the contract shall be effective to bar such liability. (e) Limitation on aggregate public liability (1) The aggregate public liability for a single nuclear incident of persons indemnified, including such legal costs as are authorized to be paid under subsection (o)(1)(D) of this section, shall not exceed— (A) in the case of facilities designed for producing substantial amounts of electricity and having a rated capacity of 100,000 electrical kilowatts or more, the maximum amount of financial protection required of such facilities under subsection (b) of this section (plus any surcharge assessed under subsection (o)(1)(E) of this section); (B) in the case of contractors with whom the Secretary has entered into an agreement of indemnification under subsection (d) of this section, the amount of indemnity and financial protection that may be required under paragraph (2) of subsection (d) of this section; and (C) in the case of all other licensees of the Commission required to maintain financial protection under this section— (i) $500,000,000, together with the amount of financial protection required of the licensee; or (ii) if the amount of financial protection required of the licensee exceeds $60,000,000, $560,000,000 or the amount of financial protection required of the licensee, whichever amount is more. (2) In the event of a nuclear incident involving damages in excess of the amount of aggregate public liability under paragraph (1), the Congress will thoroughly review the particular incident in accordance with the procedures set forth in subsection (i) of this section and will in accordance with such procedures, take whatever action is determined to be necessary (including approval of appropriate compensation plans and appropriation of funds) to provide full and prompt compensation to the public for all public liability claims resulting from a disaster of such magnitude. (3) No provision of paragraph (1) may be construed to preclude the Congress from enacting a revenue measure, applicable to licensees of the Commission required to maintain financial protection pursuant to subsection (b) of this section, to fund any action undertaken pursuant to paragraph (2). (4) With respect to any nuclear incident occurring outside of the United States to which an agreement of indemnification entered into under the provisions of subsection (d) of this section is applicable, such aggregate public liability shall not exceed the amount of $500,000,000, together with the amount of financial protection required of the contractor. (f) Collection of fees by Nuclear Regulatory Commission The Commission or the Secretary, as appropriate, is authorized to collect a fee from all persons with whom an indemnification agreement is executed under this section. This fee shall be $30 per year per thousand kilowatts of thermal energy capacity for facilities licensed under section 2133 of this title: Provided, That the Commission or the Secretary, as appropriate, is authorized to reduce the fee for such facilities in reasonable relation to increases in financial protection required above a level of $60,000,000. For facilities licensed under section 2134 of this title, and for construction permits under section 2235 of this title, the Commission is authorized to reduce the fee set forth above. The Commission shall establish criteria in writing for determination of the fee for facilities licensed under section 2134 of this title, taking into consideration such factors as (1) the type, size, and location of facility involved, and other factors pertaining to the hazard, and (2) the nature and purpose of the facility. For other licenses, the Commission shall collect such nominal fees as it deems appropriate. No fee under this subsection shall be less than $100 per year.
(g) Use of services of private insurers In administering the provisions of this section, the Commission or the Secretary, as appropriate, shall use, to the maximum extent practicable, the facilities and services of private insurance organizations, and the Commission or the Secretary, as appropriate, may contract to pay a reasonable compensation for such services. Any contract made under the provisions of this subsection may be made without regard to the provisions of section 6101 of title 41 upon a showing by the Commission or the Secretary, as appropriate, that advertising is not reasonably practicable and advance payments may be made.
(h) Conditions of agreements of indemnification The agreement of indemnification may contain such terms as the Commission or the Secretary, as appropriate, deems appropriate to carry out the purposes of this section. Such agreement shall provide that, when the Commission or the Secretary, as appropriate, makes a determination that the United States will probably be required to make indemnity payments under this section, the Commission or the Secretary, as appropriate, shall collaborate with any person indemnified and may approve the payment of any claim under the agreement of indemnification, appear through the Attorney General on behalf of the person indemnified, take charge of such action, and settle or defend any such action. The Commission or the Secretary, as appropriate, shall have final authority on behalf of the United States to settle or approve the settlement of any such claim on a fair and reasonable basis with due regard for the purposes of this chapter. Such settlement shall not include expenses in connection with the claim incurred by the person indemnified.
(i) Compensation plans (1) After any nuclear incident involving damages that are likely to exceed the applicable amount of aggregate public liability under subparagraph (A), (B), or (C) of subsection (e)(1) of this section, the Secretary or the Commisison, the Commission or the Secretary, as appropriate, may incorporate provisions in indemnity agreements with licensees and contractors under this section, and may require provisions to be incorporated in insurance policies or contracts furnished as proof of financial protection, which waive (i) any issue or defense as to conduct of the claimant or fault of persons indemnified, (ii) any issue or defense as to charitable or governmental immunity, and (iii) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his injury or damage and the cause thereof. The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action. When so incorporated, such waivers shall be judicially enforcible in accordance with their terms by the claimant against the person indemnified. Such waivers shall not preclude a defense based upon a failure to take reasonable steps to mitigate damages, nor shall such waivers apply to injury or damage to a claimant or to a claimant’s property which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant. The waivers authorized in this subsection shall, as to indemnitors, be effective only with respect to those obligations set forth in the insurance policies or the contracts furnished as proof of financial protection and in the indemnity agreements. Such waivers shall not apply to, or prejudice the prosecution or defense of, any claim or portion of claim which is not within the protection afforded under (i) the terms of insurance policies or contracts furnished as proof of financial protection, or indemnity agreements, and (ii) the limit of liability provisions of subsection (e) of this section. (2) With respect to any public liability action arising out of or resulting from a nuclear incident, the United States district court in the district where the nuclear incident takes place, or in the case of a nuclear incident taking place outside the United States, the United States District Court for the District of Columbia, shall have original jurisdiction without regard to the citizenship of any party or the amount in controversy. Upon motion of the defendant or of the Commission or the Secretary, as appropriate, any such action pending in any State court (including any such action pending on August 20, 1988 ) or United States district court shall be removed or transferred to the United States district court having venue under this subsection. Process of such district court shall be effective throughout the United States. In any action that is or becomes removable pursuant to this paragraph, a petition for removal shall be filed within the period provided in section 1446 of title 28 or within the 30-day period beginning onAugust 20, 1988 , whichever occurs later.(3) (A) Following any nuclear incident, the chief judge of the United States district court having jurisdiction under paragraph (2) with respect to public liability actions (or the judicial council of the judicial circuit in which the nuclear incident occurs) may appoint a special caseload management panel (in this paragraph referred to as the “management panel”) to coordinate and assign (but not necessarily hear themselves) cases arising out of the nuclear incident, if— (i) a court, acting pursuant to subsection (o) of this section, determines that the aggregate amount of public liability is likely to exceed the amount of primary financial protection available under subsection (b) of this section (or an equivalent amount in the case of a contractor indemnified under subsection (d) of this section); or (ii) the chief judge of the United States district court (or the judicial council of the judicial circuit) determines that cases arising out of the nuclear incident will have an unusual impact on the work of the court. (B) (i) Each management panel shall consist only of members who are United States district judges or circuit judges. (ii) Members of a management panel may include any United States district judge or circuit judge of another district court or court of appeals, if the chief judge of such other district court or court of appeals consents to such assignment. (C) It shall be the function of each management panel— (i) to consolidate related or similar claims for hearing or trial; (ii) to establish priorities for the handling of different classes of cases; (iii) to assign cases to a particular judge or special master; (iv) to appoint special masters to hear particular types of cases, or particular elements or procedural steps of cases; (v) to promulgate special rules of court, not inconsistent with the Federal Rules of Civil Procedure, to expedite cases or allow more equitable consideration of claims; (vi) to implement such other measures, consistent with existing law and the Federal Rules of Civil Procedure, as will encourage the equitable, prompt, and efficient resolution of cases arising out of the nuclear incident; and (vii) to assemble and submit to the President such data, available to the court, as may be useful in estimating the aggregate damages from the nuclear incident. (o) Plan for distribution of funds (1) Whenever the United States district court in the district where a nuclear incident occurs, or the United States District Court for the District of Columbia in case of a nuclear incident occurring outside the United States, determines upon the petition of any indemnitor or other interested person that public liability from a single nuclear incident may exceed the limit of liability under the applicable limit of liability under subparagraph (A), (B), or (C) of subsection (e)(1) of this section: (A) Total payments made by or for all indemnitors as a result of such nuclear incident shall not exceed 15 per centum of such limit of liability without the prior approval of such court; (B) The court shall not authorize payments in excess of 15 per centum of such limit of liability unless the court determines that such payments are or will be in accordance with a plan of distribution which has been approved by the court or such payments are not likely to prejudice the subsequent adoption and implementation by the court of a plan of distribution pursuant to subparagraph (C); and (C) The Commission or the Secretary, as appropriate, shall, and any other indemnitor or other interested person may, submit to such district court a plan for the disposition of pending claims and for the distribution of remaining funds available. Such a plan shall include an allocation of appropriate amounts for personal injury claims, property damage claims, and possible latent injury claims which may not be discovered until a later time and shall include establishment of priorities between claimants and classes of claims, as necessary to insure the most equitable allocation of available funds. Such court shall have all power necessary to approve, disapprove, or modify plans proposed, or to adopt another plan; and to determine the proportionate share of funds available for each claimant. The Commission or the Secretary as appropriate, any other indemnitor, and any person indemnified shall be entitled to such orders as may be appropriate to implement and enforce the provisions of this section, including orders limiting the liability of the persons indemnified, orders approving or modifying the plan, orders staying the payment of claims and the execution of court judgments, orders apportioning the payments to be made to claimants, and orders permitting partial payments to be made before final determination of the total claims. The orders of such court shall be effective throughout the United States. (D) A court may authorize payment of only such legal costs as are permitted under paragraph (2) from the amount of financial protection required by subsection (b) of this section. (E) If the sum of public liability claims and legal costs authorized under paragraph (2) arising from any nuclear incident exceeds the maximum amount of financial protection required under subsection (b) of this section, any licensee required to pay a standard deferred premium under subsection (b)(1) of this section shall, in addition to such deferred premium, be charged such an amount as is necessary to pay a pro rata share of such claims and costs, but in no case more than 5 percent of the maximum amount of such standard deferred premium described in such subsection. (2) A court may authorize the payment of legal costs under paragraph (1)(D) only if the person requesting such payment has— (A) submitted to the court the amount of such payment requested; and (B) demonstrated to the court— (i) that such costs are reasonable and equitable; and (ii) that such person has— (I) litigated in good faith; (II) avoided unnecessary duplication of effort with that of other parties similarly situated; (III) not made frivolous claims or defenses; and (IV) not attempted to unreasonably delay the prompt settlement or adjudication of such claims. (p) Reports to Congress The Commission and the Secretary shall submit to the Congress by
December 31, 2021 , detailed reports concerning the need for continuation or modification of the provisions of this section, taking into account the condition of the nuclear industry, availability of private insurance, and the state of knowledge concerning nuclear safety at that time, among other relevant factors, and shall include recommendations as to the repeal or modification of any of the provisions of this section.(q) Limitation on awarding of precautionary evacuation costs No court may award costs of a precautionary evacuation unless such costs constitute a public liability.
(r) Limitation on liability of lessors No person under a bona fide lease of any utilization or production facility (or part thereof or undivided interest therein) shall be liable by reason of an interest as lessor of such production or utilization facility, for any legal liability arising out of or resulting from a nuclear incident resulting from such facility, unless such facility is in the actual possession and control of such person at the time of the nuclear incident giving rise to such legal liability.
(s) Limitation on punitive damages No court may award punitive damages in any action with respect to a nuclear incident or precautionary evacuation against a person on behalf of whom the United States is obligated to make payments under an agreement of indemnification covering such incident or evacuation.
(t) Inflation adjustment (1) The Commission shall adjust the amount of the maximum total and annual standard deferred premium under subsection (b)(1) of this section not less than once during each 5-year period following August 20, 2003 , in accordance with the aggregate percentage change in the Consumer Price Index since—(A) August 20, 2003 , in the case of the first adjustment under this subsection; or(B) the previous adjustment under this subsection. (2) The Secretary shall adjust the amount of indemnification provided under an agreement of indemnification under subsection (d) of this section not less than once during each 5-year period following July 1, 2003 , in accordance with the aggregate percentage change in the Consumer Price Index since—(A) that date, in the case of the first adjustment under this paragraph; or (B) the previous adjustment under this paragraph. (3) For purposes of this subsection, the term “Consumer Price Index” means the Consumer Price Index for all urban consumers published by the Secretary of Labor.
References In Text
This chapter, referred to in subsecs. (b)(1) and (h), was in the original “this Act”, meaning act Aug. 1, 1946, ch. 724, as added by act Aug. 30, 1954, ch. 1073, § 1, 68 Stat. 919, known as the Atomic Energy Act of 1954, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 2011 of this title and Tables.
Public Law 85–804, referred to in subsec. (d)(1)(B)(i)(I), is Pub. L. 85–804,
The Federal Advisory Committee Act, referred to in subsec. (l)(1), (4)(A), (E), (F), is Pub. L. 92–463,
The Federal Rules of Civil Procedure, referred to in subsec. (n)(3)(C)(v), (vi), are set out in the Appendix to Title 28, Judiciary and Judicial Procedure.
Codification
In subsec. (g), “section 6101 of title 41” substituted for “section 3709 of the Revised Statutes (41 U.S.C. 5), as amended” on authority of Pub. L. 111–350, § 6(c),
Amendments
2005—Subsec. (b)(1). Pub. L. 109–58, § 603(1), substituted “$95,800,000” for “$63,000,000” and “$15,000,000 in any 1 year (subject to adjustment for inflation under subsection (t) of this section)” for “$10,000,000 in any 1 year” in second proviso of third sentence.
Subsec. (b)(5). Pub. L. 109–58, § 608, added par. (5).
Subsec. (c). Pub. L. 109–58, § 602(a), substituted “licensees” for “licenses” in heading and substituted “
Subsec. (d)(1)(A). Pub. L. 109–58, § 602(b), substituted “
Subsec. (d)(2). Pub. L. 109–58, § 604(a), added par. (2) and struck out former par. (2) which read as follows: “In agreements of indemnification entered into under paragraph (1), the Secretary may require the contractor to provide and maintain financial protection of such a type and in such amounts as the Secretary shall determine to be appropriate to cover public liability arising out of or in connection with the contractual activity, and shall indemnify the persons indemnified against such claims above the amount of the financial protection required, to the full extent of the aggregate public liability of the persons indemnified for each nuclear incident, including such legal costs of the contractor as are approved by the Secretary.”
Subsec. (d)(3). Pub. L. 109–58, § 604(b), added par. (3) and struck out former par. (3) which read as follows:
“(3)(A) Notwithstanding paragraph (2), if the maximum amount of financial protection required of licensees under subsection (b) of this section is increased by the Commission, the amount of indemnity, together with any financial protection required of the contractor, shall at all times remain equal to or greater than the maximum amount of financial protection required of licensees under subsection (b) of this section.
“(B) The amount of indemnity provided contractors under this subsection shall not, at any time, be reduced in the event that the maximum amount of financial protection required of licensees is reduced.
“(C) All agreements of indemnification under which the Department of Energy (or its predecessor agencies) may be required to indemnify any person, shall be deemed to be amended, on
Subsec. (d)(5). Pub. L. 109–58, § 605(a), substituted “$500,000,000” for “$100,000,000”.
Subsec. (e)(1)(B). Pub. L. 109–58, § 604(c), struck out “the maximum amount of financial protection required under subsection (b) of this section or” before “the amount of indemnity” and substituted “paragraph (2) of subsection (d) of this section” for “paragraph (3) of subsection (d) of this section, whichever amount is more”.
Subsec. (e)(4). Pub. L. 109–58, § 605(b), substituted “$500,000,000” for “$100,000,000”.
Subsec. (k). Pub. L. 109–58, § 602(c), substituted “
Subsec. (p). Pub. L. 109–58, § 606, substituted “
Subsec. (t)(1). Pub. L. 109–58, § 603(2), inserted “total and annual” before “standard deferred premium” in introductory provisions and substituted “
Subsec. (t)(2), (3). Pub. L. 109–58, § 607, added par. (2) and redesignated former par. (2) as (3).
2004—Subsec. (d)(1)(A). Pub. L. 108–375 substituted “until
2003—Subsec. (c). Pub. L. 108–7 substituted “
2002—Subsec. (d)(1)(A). Pub. L. 107–314 substituted “until
1998—Subsec. (p). Pub. L. 105–362 struck out par. (1) designation and struck out par. (2) which read as follows: “Not later than April 1 of each year, the Commission and the Secretary shall each submit an annual report to the Congress setting forth the activities under this section during the preceding calendar year.”
1988—Subsec. (a). Pub. L. 100–408, § 16(e)(1), inserted “Requirement of financial protection for licensees” as heading.
Pub. L. 100–408, § 16(d)(4), substituted “section 2i.” for “subsection 2i. of the Atomic Energy Act of 1954, as amended”, “subsection b.” for “subsection 170b.”, and “subsection c.” for “subsection 170c.”, which for purposes of codification were translated as “section 2012(i) of this title”, “subsection (b) of this section”, and “subsection (c) of this section”, respectively, thus requiring no change in text.
Pub. L. 100–408, § 16(a)(2), substituted “the Nuclear Regulatory Commission (in this section referred to as the ‘Commission’) in the exercise” for “the Commission in the exercise”.
Subsec. (b). Pub. L. 100–408, § 16(e)(2), inserted “Amount and type of financial protection for licensees” as heading.
Subsec. (b)(1). Pub. L. 100–408, § 2(a)–(c)(3), inserted par. (1) designation, inserted “primary” after “The amount of”, “the amount of”, “Such”, and “of such”, redesignated cls. (1) to (3) as (A) to (C), inserted “(excluding the amount of private liability insurance available under the industry retrospective rating plan required in this subsection)”, substituted “The Commission shall require licensees that are required to have and maintain primary financial protection equal to the maximum amount of liability insurance available from private sources to maintain, in addition to such primary financial protection,” for “In prescribing such terms and conditions for licensees required to have and maintain financial protection equal to the maximum amount of liability insurance available from private sources, the Commission shall, by rule initially prescribed not later than twelve months from
Subsec. (b)(2). Pub. L. 100–408, § 2(c)(4), added par. (2).
Subsec. (b)(3). Pub. L. 100–408, § 2(d)(1), inserted par. (3) designation.
Subsec. (b)(4). Pub. L. 100–408, § 2(d)(2), added par. (4).
Subsec. (c). Pub. L. 100–408, § 16(e)(3), inserted “Indemnification of licenses by Nuclear Regulatory Commission” as heading.
Pub. L. 100–408, § 3, substituted “
Subsec. (d). Pub. L. 100–408, § 4(a), inserted “Indemnification of contractors by Department of Energy” as heading and completely revised and expanded subsec. (d), changing its structure from a single unnumbered subsection to one consisting of seven numbered paragraphs.
Subsec. (e). Pub. L. 100–408, § 6, inserted “Limitation on aggregate public liability” as heading and completely revised and expanded subsec. (e), changing its structure from a single unnumbered subsection to one consisting of four numbered paragraphs.
Subsec. (f). Pub. L. 100–408, § 16(e)(4), inserted “Collection of fees by Nuclear Regulatory Commission” as heading.
Pub. L. 100–408, § 16(b)(3), inserted “or the Secretary, as appropriate,” in two places.
Subsec. (g). Pub. L. 100–408, § 16(e)(5), inserted “Use of services of private insurers” as heading.
Pub. L. 100–408, § 16(c)(1), substituted “section 3709 of the Revised Statutes (41 U.S.C. 5)” for “section 3709 of the Revised Statutes”, which for purposes of codification was translated as “section 5 of title 41”, thus requiring no change in text.
Pub. L. 100–408, § 16(b)(4), inserted “or the Secretary, as appropriate,” after “Commission”, wherever appearing.
Subsec. (h). Pub. L. 100–408, § 16(e)(6), inserted “Conditions of agreements of indemnification” as heading.
Pub. L. 100–408, § 16(b)(4), inserted “or the Secretary, as appropriate,” after “Commission”, wherever appearing.
Subsec. (i). Pub. L. 100–408, § 7(a), inserted “Compensation plans” as heading and completely revised and expanded subsec. (i), changing its structure from a single unnumbered subsection to one consisting of six numbered paragraphs.
Subsec. (j). Pub. L. 100–408, § 16(e)(7), inserted “Contracts in advance of appropriations” as heading.
Pub. L. 100–408, § 16(c)(2), substituted “sections 1341, 1342, 1349, 1350, and 1351, and subchapter II of chapter 15, of title 31” for “section 3679 of the Revised Statutes, as amended”.
Pub. L. 100–408, § 16(b)(4), inserted “or the Secretary, as appropriate,”.
Subsec. (k). Pub. L. 100–408, § 16(e)(8), inserted “Exemption from financial protection requirement for nonprofit educational institutions” as heading.
Pub. L. 100–408, § 16(d)(5), in introductory provisions substituted “subsection a” for “subsection 170a”, which for purposes of codification was translated as “subsection (a) of this section”, thus requiring no change in text.
Pub. L. 100–408, § 8(1), substituted “
Subsec. (k)(1). Pub. L. 100–408, § 8(2), substituted “including such legal costs of the licensee as are approved by the Commission” for “excluding cost of investigating and settling claims and defending suits for damage”.
Subsec. (l). Pub. L. 100–408, § 9, inserted “Presidential commission on catastrophic nuclear accidents” as heading and completely revised and expanded subsec. (l), changing its structure from a single unnumbered subsection to one consisting of six numbered paragraphs.
Subsec. (m). Pub. L. 100–408, § 16(e)(9), inserted “Coordinated procedures for prompt settlement of claims and emergency assistance” as heading.
Pub. L. 100–408, § 16(b)(4), inserted “or the Secretary, as appropriate,” after “Commission” wherever appearing.
Subsec. (n). Pub. L. 100–408, § 16(e)(10), inserted “Waiver of defenses and judicial procedures” as heading.
Subsec. (n)(1). Pub. L. 100–408, §§ 10, 16(b)(5)(A), (d)(6), redesignated existing subpars. (a), (b), and (c) as (A), (B), and (C), respectively, added subpars. (D), (E), and (F), substituted “a Department of Energy contractor” for “a Commission contractor” in subpar. (C), and, in closing provisions inserted “, or the Secretary, as appropriate,” after “the Commission”, struck out “, but in no event more than twenty years after the date of the nuclear incident” after “and the cause thereof”, and substituted “subsection e” for “subsection 170e”, which for purposes of codification was translated as “subsection (e) of this section”, requiring no change in text.
Subsec. (n)(2). Pub. L. 100–408, § 16(b)(5)(B), inserted “or the Secretary, as appropriate” after “Commission”.
Pub. L. 100–408, § 11(a), substituted “a nuclear incident” for “an extraordinary nuclear occurrence” in two places and “the nuclear incident” for “the extraordinary nuclear occurrence”, and inserted “(including any such action pending on
Subsec. (n)(3). Pub. L. 100–408, § 11(c), added par. (3).
Subsec. (o). Pub. L. 100–408, § 11(d)(1), inserted “Plan for distribution of funds” as heading, designated existing provisions as par. (1), redesignated former pars. (1) to (3) as subpars. (A) to (C), respectively, and added subpars. (D) and (E) and par. (2).
Subsec. (o)(1). Pub. L. 100–408, § 7(b)(1), substituted “the applicable limit of liability under subparagraph (A), (B), or (C) of subsection (e)(1) of this section” for “subsection (e) of this section” in introductory provisions.
Subsec. (o)(1)(B). Pub. L. 100–408, § 16(d)(7), substituted “subparagraph (C)” for “subparagraph (3) of this subsection (o)”.
Subsec. (o)(1)(C). Pub. L. 100–408, § 16(b)(6), inserted “or the Secretary, as appropriate,” after first reference to “Commission” and “or the Secretary as appropriate” after second reference to “Commission”.
Subsec. (o)(4). Pub. L. 100–408, § 7(b)(2), struck out par. (4) which read as follows: “The Commission shall, within ninety days after a court shall have made such determination, deliver to the Joint Committee a supplement to the report prepared in accordance with subsection (i) of this section setting forth the estimated requirements for full compensation and relief of all claimants, and recommendations as to the relief to be provided.”
Subsec. (p). Pub. L. 100–408, § 16(e)(11), inserted “Reports to Congress” as heading.
Pub. L. 100–408, § 12, designated existing provisions as par. (1), substituted “and the Secretary shall submit to the Congress by
Subsec. (q). Pub. L. 100–408, § 5(c), added subsec. (q).
Subsec. (r). Pub. L. 100–408, § 13, added subsec. (r).
Subsec. (s). Pub. L. 100–408, § 14, added subsec. (s).
Subsec. (t). Pub. L. 100–408, § 15, added subsec. (t).
1975—Subsec. (a). Pub. L. 94–197, § 2, inserted provision relating to the public purposes cited in section 2012(i) of this title and “in the exercise of its licensing and regulatory authority and responsibility” after “as the Commission”, and substituted “required, it may” for “required, it shall”.
Subsec. (b). Pub. L. 94–197, § 3, inserted requirement that for facilities having a rated capacity of 100,000 electrical kilowatts or more, the amount of financial protection required shall be at a reasonable cost and on reasonable terms, and requirement that financial protection be subject to such terms and conditions as the Commission, by rule, regulation or order prescribes, and established premium and funding standards and procedures for prescribing terms and conditions for licensees required to have and maintain financial protection equal to the maximum amount of liability insurance available from private sources. Notwithstanding the directory language that amendment be made to section 107 b. of the Atomic Energy Act of 1954, as amended, the amendment was executed to section 170 b. of the Atomic Energy Act of 1954, as amended, (subsec. (b) of this section) as the probable intent of Congress.
Subsec. (c). Pub. L. 94–197, § 4, substituted “and
Subsec. (d). Pub. L. 94–197, § 5, substituted “until
Subsec. (e). Pub. L. 94–197, § 6, designated existing provisions as cl. (1), added cl. (2), substituted proviso relating to Congressional review and action for proviso relating to aggregate liability exceeding the sum of $560,000,000, and substituted “And provided further” for “Provided further”.
Subsec. (f). Pub. L. 94–197, § 7, inserted proviso which authorized Commission to reduce the indemnity fee for persons with whom indemnification agreements have been executed in reasonable relation to increases in financial protection above a level of $60,000,000.
Subsec. (h). Pub. L. 94–197, § 8, substituted “shall not include” for “may include reasonable”.
Subsec. (i). Pub. L. 94–197, § 9, inserted “or which will probably result in public liability claims in excess of $560,000,000,” after “this section”, and requirement that Commission report extent of damage caused from a nuclear incident to the Congressmen of the affected districts and the Senators of the affected state and substituted provision relating to information concerning the national defense, for provisions relating to applicability of prohibition of sections 2161 to 2166 of this title, other laws or Executive order.
Subsec. (k). Pub. L. 94–197, § 10, substituted “
Subsec. (l). Pub. L. 94–197, § 11, substituted “excluding” for “including the reasonable”.
Subsec. (n)(1)(iii). Pub. L. 94–197, § 12, substituted “twenty years” for “ten years”.
Subsec. (o)(3), (4). Pub. L. 94–197, § 13, in par. (3) inserted provisions authorizing the establishment, in any plan for disposition of claims, of priorities between classes of claims and claimants to extent necessary to ensure the most equitable allocation of available funds, and added par. (4).
Subsec. (p). Pub. L. 94–197, § 14, added subsec. (p).
1966—Subsec. (e). Pub. L. 89–645, § 2, struck out last sentence which authorized application by the Commission or any indemnified person to district court of the United States having venue in bankruptcy over location of nuclear incident and to United States District Court for the District of Columbia in cases of nuclear incidents occurring outside the United States, and upon a showing that public liability from a single nuclear incident will probably exceed the limit of imposable liability, entitled the applicant to orders for enforcement of this section, including limitation of liability of indemnified persons, staying payment of claims and execution of court judgments, apportioning payments to claimants, permitting partial payments before final determination of total claims, and setting aside part of funds for possible injuries not discovered until later time, now incorporated in subsec. (o) of this section.
Subsecs. (m) to (o). Pub. L. 89–645, § 3, added subsecs. (m) to (o).
1965—Subsec. (c). Pub. L. 89–210, § 1, substituted “
Subsec. (d). Pub. L. 89–210, § 2, substituted “
Subsec. (e). Pub. L. 89–210, § 3, inserted proviso prohibiting the aggregate liability to exceed the sum of $560,000,000.
Subsec. (k). Pub. L. 89–210, § 4, substituted “
Subsec. (l). Pub. L. 89–210, § 5, substituted “
1964—Subsec. (c). Pub. L. 88–394, § 2, provided that with respect to any facility for which a permit is issued between
Subsec. (k). Pub. L. 88–394, § 3, provided that with respect to any facility for which a permit is issued between
1962—Subsec. (d). Pub. L. 87–615, § 6, limited the amount of indemnity provided by the Commission for nuclear incidents occurring outside the United States to $100,000,000.
Subsec. (e). Pub. L. 87–615, § 7, inserted proviso limiting the aggregate liability in cases of nuclear incidents occurring outside the United States to which an indemnification agreement entered into under subsec. (d) of this section is applicable, to $100,000,000, and substituted “occurring outside the United States, the Commission or any person indemnified may apply to the United States District Court for the District of Columbia” for “caused by ships of the United States outside of the United States, the Commission or any person indemnified may apply to the appropriate district court of the United States having venue in bankruptcy matters over the location of the principal place of business of the shipping company owning or operating the ship”.
1961—Subsec. (d). Pub. L. 87–206 inserted provision for liability of contractor to extent of indemnification under this section free of defense of sovereign immunity.
1958—Subsec. (e). Pub. L. 85–602, § 2[3], gave the district court that has venue in bankruptcy matters over the location of the principal place of business of the shipping company owning or operating the ship, jurisdiction in cases of nuclear incidents caused by ships of the United States outside of the United States.
Subsec. (k). Pub. L. 85–744 added subsec. (k).
Subsec. (l). Pub. L. 85–602, § 2, added subsec. (l).
Change Of Name
“Administrator of the Federal Emergency Management Agency” substituted for “Director of the Federal Emergency Management Agency” in subsec. (l)(4)(C) on authority of section 612(c) of Pub. L. 109–295, set out as a note under section 313 of Title 6, Domestic Security. Any reference to the Administrator of the Federal Emergency Management Agency in title VI of Pub. L. 109–295 or an amendment by title VI to be considered to refer and apply to the Director of the Federal Emergency Management Agency until
Effective Date Of Amendment
Pub. L. 109–58, title VI, § 609,
Amendment by Pub. L. 100–408 effective
Short Title
This section is popularly known as the “Price-Anderson Act” and also as the “Atomic Energy Damages Act”.
Transfer Of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see section 315(a)(1) of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of
Miscellaneous
Advisory commissions established after
Pub. L. 106–245, § 2,
Pub. L. 106–245, § 3(e)(2),
Pub. L. 106–245, § 3(i),
Pub. L. 101–426, “This Act may be cited as the ‘Radiation Exposure Compensation Act’. “A payment made under this Act shall not be considered as any form of compensation or reimbursement for a loss for purposes of imposing liability on any individual receiving such payment, on the basis of such receipt, to repay any insurance carrier for insurance payments, or to repay any person on account of worker’s compensation payments; and a payment under this Act shall not affect any claim against an insurance carrier with respect to insurance or against any person with respect to worker’s compensation. “No authority under this Act to enter into contracts or to make payments shall be effective in any fiscal year except to such extent or in such amounts as are provided in advance in appropriations Acts.
Pub. L. 100–408, § 19,
Executive Order
Ex. Ord. No. 12658,
Ex. Ord. No. 12891,