[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2983 Reported in House (RH)]






                                                 Union Calendar No. 180
107th CONGRESS
  1st Session
                                H. R. 2983

                      [Report No. 107-299, Part I]

  To extend indemnification authority under section 170 of the Atomic 
              Energy Act of 1954, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 2, 2001

   Mrs. Wilson (for herself, Mr. Barton of Texas, Mr. Norwood, Mrs. 
  Tauscher, Mr. Fossella, Mr. Blunt, Mr. Burr of North Carolina, Mr. 
  Weller, and Mr. Whitfield) introduced the following bill; which was 
            referred to the Committee on Energy and Commerce

                           November 19, 2001

Reported with an amendment and referred to the Committee on Science for 
a period ending not later than November 20, 2001, for consideration of 
     such provisions of the bill and amendment as fall within the 
     jurisdiction of that committee pursuant to clause 1(n), rule X
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                           November 20, 2001

  Committee on Science discharged; committed to the Committee of the 
    Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on October 
                                2, 2001]

_______________________________________________________________________

                                 A BILL


 
  To extend indemnification authority under section 170 of the Atomic 
              Energy Act of 1954, 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 ``Price-Anderson Reauthorization Act 
of 2001''.

SEC. 2. EXTENSION OF INDEMNIFICATION AUTHORITY.

    (a) Indemnification of Nuclear Regulatory Commission Licensees.--
Section 170 c. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(c)) is 
amended--
            (1) in the subsection heading, by striking ``Licenses'' and 
        inserting ``Licensees''; and
            (2) by striking ``August 1, 2002'' each place it appears 
        and inserting ``August 1, 2017''.
    (b) Indemnification of Department of Energy Contractors.--Section 
170 d.(1)(A) of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)(1)(A)) 
is amended by striking ``August 1, 2002'' and inserting ``August 1, 
2017''.
    (c) Indemnification of Nonprofit Educational Institutions.--Section 
170 k. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(k)) is amended 
by striking ``August 1, 2002'' each place it appears and inserting 
``August 1, 2017''.

SEC. 3. MAXIMUM ASSESSMENT.

    Section 170 b.(1) of the Atomic Energy Act of 1954 (42 U.S.C. 
2210(b)(1)) is amended--
            (1) in the second proviso of the third sentence--
                    (A) by striking ``$63,000,000'' and inserting 
                ``$94,000,000''; and
                    (B) by striking ``$10,000,000 in any 1 year'' and 
                inserting ``$15,000,000 in any 1 year (subject to 
                adjustment for inflation under subsection t.)''; and
            (2) in subsection t.--
                    (A) by inserting ``total and annual'' after 
                ``amount of the maximum'';
                    (B) by striking ``the date of the enactment of the 
                Price-Anderson Amendments Act of 1988'' and inserting 
                ``July 1, 2001''; and
                    (C) by striking ``such date of enactment'' and 
                inserting ``July 1, 2001''.

SEC. 4. DEPARTMENT OF ENERGY LIABILITY LIMIT.

    (a) Indemnification of Department of Energy Contractors.--Section 
170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is amended 
by striking paragraph (2) and inserting the following:
    ``(2) Indemnification agreements.--In an agreement of 
indemnification entered into under paragraph (1), the Secretary--
            ``(A) may require the contractor to provide and maintain 
        the 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.), 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.''.
    (b) Contract Amendments.--Section 170 d. of the Atomic Energy Act 
of 1954 (42 U.S.C. 2210(d)) is amended by striking paragraph (3) and 
inserting the following:
    ``(3) Contract amendments.--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 the date of enactment of the Price-Anderson 
Reauthorization Act of 2001, to reflect the amount of indemnity for 
public liability and any applicable financial protection required of 
the contractor under this subsection.''.
    (c) Liability Limit.--Section 170 e.(1)(B) of the Atomic Energy Act 
of 1954 (42 U.S.C. 2210(e)(1)(B)) is amended--
            (1) by striking ``the maximum amount of financial 
        protection required under subsection b. or''; and
            (2) by striking ``paragraph (3) of subsection d., whichever 
        amount is more'' and inserting ``paragraph (2) of subsection 
        d.''.

SEC. 5. INCIDENTS OUTSIDE THE UNITED STATES.

    (a) Amount of Indemnification.--Section 170 d.(5) of the Atomic 
Energy Act of 1954 (42 U.S.C. 2210(d)(5)) is amended by striking 
``$100,000,000'' and inserting ``$500,000,000''.
    (b) Liability Limit.--Section 170 e.(4) of the Atomic Energy Act of 
1954 (42 U.S.C. 2210(e)(4)) is amended by striking ``$100,000,000'' and 
inserting ``$500,000,000''.

SEC. 6. REPORTS.

    Section 170 p. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(p)) 
is amended by striking ``August 1, 1998'' and inserting ``August 1, 
2013''.

SEC. 7. INFLATION ADJUSTMENT.

    Section 170 t. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(t)) 
is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by adding after paragraph (1) the following:
    ``(2) Adjustment.--The Secretary shall adjust the amount of 
indemnification provided under an agreement of indemnification under 
subsection d. not less than once during each 5-year period following 
July 1, 2001, 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.''.

SEC. 8. PRICE-ANDERSON TREATMENT OF MODULAR REACTORS.

    Section 170 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(b)) 
is amended by adding at the end the following new paragraph:
    ``(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 2 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.''.

SEC. 9. APPLICABILITY.

    The amendments made by sections 3, 4, and 5 do not apply to a 
nuclear incident that occurs before the date of enactment of this Act.

SEC. 10. PROHIBITION ON ASSUMPTION BY UNITED STATES GOVERNMENT OF 
              LIABILITY FOR CERTAIN FOREIGN ACCIDENTS.

    Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) is 
amended by adding at the end the following new subsection:
    ``u. Prohibition on Assumption of Liability for Certain Foreign 
Accidents.--Notwithstanding this section or any other provision of law, 
no officer of the United States or of any department, agency, or 
instrumentality of the United States Government may enter into any 
contract or other arrangement, or into any amendment or modification of 
a contract or other arrangement, the purpose or effect of which would 
be to directly or indirectly impose liability on the United States 
Government, or any department, agency, or instrumentality of the United 
States Government, or to otherwise directly or indirectly require an 
indemnity by the United States Government, for nuclear accidents 
occurring in any country whose government has been identified by the 
Secretary of State as engaged in state sponsorship of terrorist 
activities (specifically including any country the government of which, 
as of September 11, 2001, had been determined by the Secretary of State 
under section 620A(a) of the Foreign Assistance Act of 1961, section 
6(j)(1) of the Export Administration Act of 1979, or section 40(d) of 
the Arms Export Control Act to have repeatedly provided support for 
acts of international terrorism).''.

SEC. 11. TRANSPORTATION OF NUCLEAR MATERIALS.

    (a) Amendment.--Chapter 14 of the Atomic Energy Act of 1954 (42 
U.S.C. 2201-2210b) is amended by adding at the end the following new 
section:
    ``Sec. 170C. Transportation of Nuclear Materials.--
    ``a. The Nuclear Regulatory Commission shall establish a system to 
ensure that--
            ``(1) with respect to activities by any party pursuant to a 
        license issued under this Act, each vehicle transporting 
        materials described in subsection b. in the United States--
                    ``(A) from a facility licensed by the Nuclear 
                Regulatory Commission;
                    ``(B) from a facility licensed by an agreement 
                State; or
                    ``(C) from a country with whom the United States 
                has an agreement for cooperation under section 123,
        carries a manifest describing the type and amount of materials 
        being transported;
            ``(2) each individual driving or traveling with such a 
        vehicle has been subject to a security background check by 
        appropriate Federal entities; and
            ``(3) no such vehicle transports such materials to a 
        destination other than a facility licensed by the Nuclear 
        Regulatory Commission or an agreement State under this Act or 
        other appropriate Federal facility, or to a destination outside 
        the United States in a country with whom the United States has 
        an agreement for cooperation under section 123.
    ``b. Except as otherwise provided by the Commission by regulation, 
the materials referred to in subsection a.(1) are byproduct materials, 
source materials, special nuclear materials, high-level radioactive 
waste, spent nuclear fuel, transuranic waste, and low-level radioactive 
waste (as defined in section 2(16) of the Nuclear Waste Policy Act of 
1982 (42 U.S.C. 10101(16))).''.
    (b) Regulations.--Not later than 1 year after the date of the 
enactment of this Act, and from time to time thereafter as it considers 
necessary, the Nuclear Regulatory Commission shall issue regulations 
identifying radioactive materials that, consistent with the protection 
of public health and safety and the common defense and security, are 
appropriate exceptions to the transportation requirements of section 
170C of the Atomic Energy Act of 1954, as added by subsection (a) of 
this section.
    (c) Effective Date.--The amendment made by subsection (a) shall 
take effect upon the issuance of regulations under subsection (b).
    (d) Table of Sections Amendment.--The table of sections for chapter 
14 of the Atomic Energy Act of 1954 is amended by adding at the end the 
following new item:

``Sec. 170C. Transportation of nuclear materials.''.

SEC. 12. NUCLEAR FACILITY THREATS.

    (a) Study.--The President, in consultation with the Nuclear 
Regulatory Commission and other appropriate Federal, State, and local 
agencies and private entities, shall conduct a study to identify the 
types of threats that pose an appreciable risk to the security of the 
various classes of facilities licensed by the Nuclear Regulatory 
Commission under the Atomic Energy Act of 1954. Such study shall take 
into account, but not be limited to--
            (1) the events of September 11, 2001;
            (2) an assessment of physical, cyber, biochemical, and 
        other terrorist threats;
            (3) the potential for attack on facilities by multiple 
        coordinated teams of a large number of individuals;
            (4) the potential for assistance in an attack from several 
        persons employed at the facility;
            (5) the potential for suicide attacks;
            (6) the potential for water-based and air-based threats;
            (7) the potential use of explosive devices of considerable 
        size and other modern weaponry;
            (8) the potential for attacks by persons with a 
        sophisticated knowledge of facility operations;
            (9) the potential for fires, especially fires of long 
        duration; and
            (10) the potential for attacks on spent fuel shipments by 
        multiple coordinated teams of a large number of individuals.
    (b) Summary and Classification Report.--Not later than 180 days 
after the date of the enactment of this Act, the President, shall 
transmit to the Congress and the Nuclear Regulatory Commission a 
report--
            (1) summarizing the types of threats identified under 
        subsection (a); and
            (2) classifying each type of threat identified under 
        subsection (a), in accordance with existing laws and 
        regulations, as either--
                    (A) involving attacks and destructive acts, 
                including sabotage, directed against the facility by an 
                enemy of the United States, whether a foreign 
                government or other person, or otherwise falling under 
                the responsibilities of the Federal Government; or
                    (B) involving the type of risks that Nuclear 
                Regulatory Commission licensees should be responsible 
                for guarding against.
    (c) Federal Action Report.--Not later than 90 days after the date 
on which a report is transmitted under subsection (b), the President, 
shall transmit to the Congress a report on actions taken, or to be 
taken, to address the types of threats identified under subsection 
(b)(2)(A). Such report may include a classified annex as appropriate.
    (d) Regulations.--Not later than 270 days after the date on which a 
report is transmitted under subsection (b), the Nuclear Regulatory 
Commission shall issue regulations, including changes to the design 
basis threat, to ensure that licensees address the threats identified 
under subsection (b)(2)(B).
    (e) Physical Security Program.--The Nuclear Regulatory Commission 
shall establish an operational safeguards response evaluation program 
that ensures that the physical protection capability and operational 
safeguards response for sensitive nuclear facilities, as determined by 
the Commission consistent with the protection of public health and the 
common defense and security, shall be tested periodically through 
Commission approved or designed, observed, and evaluated force-on-force 
exercises to determine whether the ability to defeat the design basis 
threat is being maintained. For purposes of this subsection, the term 
``sensitive nuclear facilities'' includes at a minimum commercial 
nuclear power plants, including associated spent fuel storage 
facilities, spent fuel storage pools and dry cask storage at closed 
reactors, independent spent fuel storage facilities and geologic 
repository operations areas, category I fuel cycle facilities, and 
gaseous diffusion plants.
    (f) Control of Information.--In carrying out this section, the 
President and the Nuclear Regulatory Commission shall control the 
dissemination of restricted data, safeguards information, and other 
classified national security information in a manner so as to ensure 
the common defense and security, consistent with chapter 12 of the 
Atomic Energy Act of 1954.

SEC. 13. INDUSTRIAL SAFETY RULES FOR DEPARTMENT OF ENERGY NUCLEAR 
              FACILITIES.

    Section 170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) 
is amended by adding at the end the following new paragraph:
    ``(8)(A) It shall be a condition of any agreement of 
indemnification entered into under this subsection that the indemnified 
party comply with regulations issued under this paragraph.
    ``(B) Not later than 180 days after the date of the enactment of 
this paragraph, the Secretary shall issue industrial health and safety 
regulations that shall apply to all Department of Energy contractors 
and subcontractors who are covered under agreements entered into under 
this subsection for operations at Department of Energy nuclear 
facilities. Such regulations shall provide a level of protection of 
worker health and safety that is substantially equivalent to or 
identical to that provided by the industrial and construction safety 
regulations of the Occupational Safety and Health Administration (29 
CFR 1910 and 1926), and shall establish civil penalties for violation 
thereof that are substantially equivalent to or identical to the civil 
penalties applicable to violations of the industrial and construction 
safety regulations of the Occupational Safety and Health 
Administration. The Secretary shall amend regulations under this 
subparagraph as necessary.
    ``(C) Not later than 240 days after the date of the enactment of 
this paragraph, all agreements described in subparagraph (B), and all 
contracts and subcontracts for the indemnified contractors and 
subcontractors, shall be modified to incorporate the requirements of 
the regulations issued under subparagraph (B). Such modifications shall 
require compliance with the requirements of the regulations not later 
than 1 year after the issuance of the regulations.
    ``(D) Enforcement of regulations issued under subparagraph (B), and 
inspections required in the course thereof, shall be conducted by the 
Office of Enforcement of the Office of Environment, Safety, and Health 
of the Department of Energy. The Secretary shall transmit to the 
Congress an annual report on the implementation of this 
subparagraph.''.

SEC. 14. UNREASONABLE RISK CONSULTATION.

    Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) is 
amended by adding at the end the following new subsection:
    ``v. Unreasonable Risk Consultation.--Before entering into an 
agreement of indemnification under this section with respect to a 
utilization facility, the Nuclear Regulatory Commission shall consult 
with the Assistant to the President for Homeland Security (or any 
successor official) concerning whether the location of the proposed 
facility and the design of that type of facility ensure that the 
facility provides for adequate protection of public health and safety 
if subject to a terrorist attack.''.

SEC. 15. FINANCIAL ACCOUNTABILITY.

    (a) Amendment.--Section 170 of the Atomic Energy Act of 1954 (42 
U.S.C. 2210) is amended by adding at the end the following new 
subsection:
    ``w. Financial Accountability.--(1) Notwithstanding subsection d., 
the Attorney General may bring an action in the appropriate United 
States district court to recover from a contractor of the Secretary (or 
subcontractor or supplier of such contractor) amounts paid by the 
Federal Government under an agreement of indemnification under 
subsection d. for public liability resulting from conduct which 
constitutes intentional misconduct of any corporate officer, manager, 
or superintendent of such contractor (or subcontractor or supplier of 
such contractor).
    ``(2) The Attorney General may recover under paragraph (1) an 
amount not to exceed the amount of the profit derived by the defendant 
from the contract.
    ``(3) No amount recovered from any contractor (or subcontractor or 
supplier of such contractor) under paragraph (1) may be reimbursed 
directly or indirectly by the Department of Energy.
    ``(4) Paragraph (1) shall not apply to any nonprofit entity 
conducting activities under contract for the Secretary.
    ``(5) No waiver of a defense required under this section shall 
prevent a defendant from asserting such defense in an action brought 
under this subsection.
    ``(6) The Secretary shall, by rule, define the terms `profit' and 
`nonprofit entity' for purposes of this subsection. Such rulemaking 
shall be completed not later than 180 days after the date of the 
enactment of this subsection.''.
    (b) Effective Date.--The amendment made by this section shall not 
apply to any agreement of indemnification entered into under section 
170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) before the 
date of the enactment of this Act.

SEC. 16. CIVIL PENALTIES.

    (a) Repeal of Automatic Remission.--Section 234A b. (2) of the 
Atomic Energy Act of 1954 (42 U.S.C. 2282a(b)(2)) is amended by 
striking the last sentence.
    (b) Limitation for Nonprofit Institutions.--Subsection d. of 
section 234A of the Atomic Energy Act of 1954 (42 U.S.C. 2282a(d)) is 
amended to read as follows:
    ``d. Notwithstanding subsection a., a contractor, subcontractor, or 
supplier described in section 501(c)(3) of the Internal Revenue Code of 
1986 and exempt from tax under section 501(a) of such Code shall not be 
subject to a civil penalty for a violation under subsection a. in 
excess of the amount of any discretionary fee paid to such contractor, 
subcontractor, or supplier under the contract under which such 
violation occurs.''.
    (c) Effective Date.--The amendments made by this Act shall not 
apply to any violation of the Atomic Energy Act of 1954 occurring under 
a contract entered into before the date of the enactment of this Act.




                                                 Union Calendar No. 180

107th CONGRESS

  1st Session

                               H. R. 2983

                      [Report No. 107-299, Part I]

_______________________________________________________________________

                                 A BILL

  To extend indemnification authority under section 170 of the Atomic 
              Energy Act of 1954, and for other purposes.

_______________________________________________________________________

                           November 20, 2001

  Committee on Science discharged; committed to the Committee of the 
    Whole House on the State of the Union and ordered to be printed