[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3879 Reported in Senate (RS)]







                                                       Calendar No. 636
109th CONGRESS
  2d Session
                                S. 3879

                          [Report No. 109-346]

 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 (for himself and Mr. Voinovich) introduced the following 
bill; which was read twice and referred to the Committee on Environment 
                            and Public Works

                           September 25, 2006

                Reported by Mr. Inhofe, with amendments
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 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 outside the United 
        States not covered by section 170 of the Atomic Energy Act of 
        1954 (42 U.S.C. 2210), a retrospective premium should be 
        prorated among nuclear suppliers relieved from potential 
        liability for which insurance is not available.
    (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 outside the United 
        States that is not a Price-Anderson incident, by allocating the 
        contingent costs equitably, on the basis of risk, among the 
        class of nuclear suppliers relieved by the Convention from the 
        risk of potential liability resulting from any covered incident 
        outside the United States.

SEC. 3. DEFINITIONS.

    In this Act:
            (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.
            (6) Covered person.--
                    (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.
            (10) United states.--
                    (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 outside the United States that is not a Price-Anderson 
incident.
    (b) Deferred Payment.--
            (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.--<DELETED>The</DELETED> Not later 
                than 3 years after the date of enactment of this Act, 
                and every 5 years thereafter, the Secretary shall, by 
                regulation, determine the risk-informed assessment 
                formula for the allocation among nuclear suppliers of 
                the contingent cost resulting from a covered incident 
                that is not a Price-Anderson incident, taking into 
                account risk factors such as--
                            (i) the nature and intended purpose of the 
                        goods and services supplied by each nuclear 
                        supplier to each covered installation outside 
                        the United States;
                            (ii) the quantity of the goods and services 
                        supplied by each nuclear supplier to each 
                        covered installation outside the United States;
                            (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 outside the United States 
                        to which the goods and services are supplied;
                            (v) the legal, regulatory, and financial 
                        infrastructure associated with the covered 
                        installation outside the United States 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) exclude--
                                    (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).
                    (D) Report.--Not later than 5 years after the date 
                of enactment of this Act, the Secretary shall submit to 
                the Committee on Environment and Public Works of the 
                Senate and the Committee on Energy and Commerce of the 
                House of Representatives a report on whether there is a 
                need for continuation or amendment of this Act, taking 
                into account the effects of the implementation of the 
                Convention on the United States nuclear industry and 
                suppliers.

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.
            (2) Payments.--
                    (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.
    (b) Use of Funds.--
            (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.
    (b) Cause of Action.--
            (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.
                                                       Calendar No. 636

109th CONGRESS

  2d Session

                                S. 3879

                          [Report No. 109-346]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                           September 25, 2006

                        Reported with amendments