1.This Act may be cited as the
Convention on Supplementary
Compensation for Nuclear Damage Contingent Cost Allocation
Act
.
2.
(a)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)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.
3.In this Act:
(1)The
term Commission means the Nuclear Regulatory Commission.
(2)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)The
term Convention means the Convention on Supplementary Compensation
for Nuclear Damage, done at Vienna on September 12, 1997.
(4)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)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)
(A)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)The
term covered person does not include—
(i)the
United States; or
(ii)any agency or
instrumentality of the United States.
(7)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)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)The
term Secretary means the Secretary of Energy.
(10)
(A)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)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)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.
4.Use of
Price-Anderson funds
(a)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)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)).
5.Effect on amount
of public liability
(a)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)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.
6.Retrospective
risk pooling program
(a)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)
(1)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 paymentThe 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)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
considerationIn 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)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)Not
later than 5 years after the date of enactment of this Act and every 5 years
thereafter, the Secretary shall submit to the Committee on Environment and
Public Works of the Senate and the Committee on Energy and Commerce of the
House of Representatives a report on whether there is a need for continuation
or amendment of this Act, taking into account the effects of the implementation
of the Convention on the United States nuclear industry and suppliers.
7.
(a)Collection of
Information
(1)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)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)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.
8.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.
9.Payments to and
by the United States
(a)Action by
Nuclear Suppliers
(1)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)
(A)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)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)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)
(1)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 treasuryThe 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)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.
10.Limitation on
judicial review; cause of action
(a)Limitation on
Judicial Review
(1)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
jurisdictionNothing in this subsection affects the jurisdiction
of the Supreme Court of the United States under chapter 81 of title 28, United
States Code.
(b)
(1)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)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)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.
11.This Act does not
provide to an operator of a covered installation any right of recourse under
the Convention.
12.Protection of
sensitive United States informationNothing 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).
13.
(a)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)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 ProvisionSection 553 of title 5, United States Code, shall
apply with respect to the promulgation of regulations under this
section.
(d)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.
14.This Act takes effect on
the date of enactment of this Act.