[Congressional Record Volume 149, Number 6 (Tuesday, January 14, 2003)]
[Senate]
[Pages S294-S295]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

           By Mr. VOINOVICH (for himself and Mr. INHOFE):
  S. 156. A bill to amend the Atomic Energy Act of 1954 to reauthorize 
the Price-Anderson provisions; to the Committee on Environmental and 
Public Works.
  Mr. VOINOVICH. Mr. President, I rise today, as the Chairman of the 
Clean Air, Climate Change, and Nuclear Safety Subcommittee, to 
introduce a bill to reauthorize the Price-Anderson Act. While the Act 
was first passed in 1957 and has been renewed three times, the current 
authorization expired on August 1, 2002 for Nuclear Regulatory 
Commission licensees. The growth of nuclear power depends greatly on 
the reauthorization of this Act, which provides liability for damages 
to the general public from nuclear incidents.

[[Page S295]]

  It is important for the American public to understand how the Price-
Anderson liability program works. The nuclear industry actually funds 
the program; it is not a Federal subsidy. Each nuclear power plant 
purchases liability insurance from private insurers to cover the first 
$200 million for immediate response in the case of an accident. If the 
damages amounted to more than this amount, a second level of financial 
protection would apply. In these cases, each of the U.S. licensed 
nuclear units would pay up to $10 million annually into a collective 
fund to cover the damages, with a maximum payment of $88.1 million per 
accident. This, together with the $200 million in insurance money, 
provides a total of about $9.3 billion in insurance coverage to 
compensate the public in the case of a nuclear accident. If more than 
this amount is needed, Congress could then go back to the industry and 
demand a larger contribution.
  This is an incredible system. I am not aware of any facility in the 
country or world that is insured for up to $9.3 billion. Neither do I 
know of any other industry in which all of the competitors agree up 
front to pay for the mistakes or acts of God that affect any one 
company. Furthermore, instead of fighting claims in court, the industry 
waives its traditional tort defense so that the fund begins making 
payments immediately. This means that if there were a nuclear disaster 
somewhere, the insurance companies would immediately start paying out 
claims. In fact, after the Three Mile Island incident, claims offices 
were on the site within 24 hours. This program provides extensive 
insurance coverage and provides it up front.
  The expiration of this program affects only new NRC licenses, not 
existing licensees. Without the program, a new nuclear facility would 
be unable to obtain the liability insurance that this program provides, 
making new licenses very improbable, if not impossible.
  Nuclear energy is important to our Nation's national security, 
economy, and environment. America's nuclear energy industry currently 
provides approximately 20 percent of our energy. It is a safe, 
reliable, and zero-emission source of energy. This has had a tremendous 
positive effect on the environment and public health. Since 1973, 
nuclear energy has prevented 62 million tons of sulfur dioxide, a key 
component of acid rain, and 32 million tons of nitrogen oxide, a 
precursor to ozone, from being released into the atmosphere. Arguably, 
nuclear power has contributed more to achieving a reduction in 
emissions than any other source of energy, except possibly solar, wind, 
and hydropower.
  Our Nation needs to do whatever it can to promote a safe and 
efficient nuclear energy industry and encourage the development of new 
nuclear reactors. Reauthorizing the Price-Anderson Act is a major step 
in that direction.
  During the previous administration, both the Department of Energy and 
the NRC issued reports to Congress recommending the reauthorization of 
Price-Anderson. Last Congress, I introduced legislation to reauthorize 
Price-Anderson, S. 1360, and included these provisions in an amendment 
that I proposed to the energy bill. My amendment, S. Amdt. 2983, was 
agreed to by a vote of 78-21 on March 7, 2002. This amendment 
reauthorized the program for both DOE contractors and NRC licensees. 
The amendment falls under the shared jurisdiction of both the Energy 
Committee for contractors and the Environment and Public Works 
Committee for NRC licensees. I look forward to working with the EPW 
Committee to pass this bill to reauthorize the Price-Anderson Act for 
10 years for NRC licensees.
  I thank Senator Inhofe for joining me in cosponsoring this bill. The 
Price-Anderson Act is so vital to the future expansion of our nuclear 
energy industry. I urge the speedy consideration and passage of this 
bill.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 156

       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 Amendments 
     Act of 2003''.

     SEC. 2. EXTENSION OF INDEMNIFICATION AUTHORITY.

       (a) Indemnification of Nuclear Regulatory Commission 
     Licensees.--Section 170c. 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, 2012''.

     SEC. 3. REPORTS.

       Section 170p. of the Atomic Energy Act of 1954 (42 U.S.C. 
     2210(p)) is amended by striking ``August 1, 1998'' and 
     inserting ``August 1, 2008''.

     SEC. 4. EFFECTIVE DATE.

       The amendments made by this Act take effect on August 1, 
     2002.
                                 ______