[Federal Register Volume 78, Number 179 (Monday, September 16, 2013)]
[Notices]
[Pages 56868-56869]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-22494]


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DEPARTMENT OF ENERGY


Adjustment of Indemnification for Inflation

AGENCY: Office of General Counsel, U.S Department of Energy.

ACTION: Notice of adjusted indemnification amount.

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SUMMARY: The Department of Energy (DOE) is announcing the adjusted

[[Page 56869]]

amount of indemnification provided under subsection 170d. of the Atomic 
Energy Act of 1954 (AEA), 42 U.S.C. 2210d., commonly known as the 
Price-Anderson Act. Subsection 170t. of the AEA requires an inflation 
adjustment of the indemnification amount at least once during each 5-
year period following July 1, 2003, in accordance with the aggregate 
percentage change in the Consumer Price Index (CPI) . This notice 
announces $12,697,798,000 as the second inflation-adjusted amount based 
on the aggregate percentage change in the CPI during the 5-year period 
from July 2008 to July 2013.

DATES: This action is effective September 16, 2013.

FOR FURTHER INFORMATION CONTACT: Sophia Angelini, Attorney Advisor (GC-
52), Office of the General Counsel, U.S. Department of Energy, 1000 
Independence Ave. SW., Washington, DC 20585, (202) 586-0319.

SUPPLEMENTARY INFORMATION: The Price-Anderson Act, section 170 of the 
AEA (42 U.S.C. 2210), establishes a system of financial protection for 
persons who may be liable for a ``nuclear incident,'' as defined at 
section 11q. of the AEA (42 U.S.C. 2014q.). The Price-Anderson Act is 
administered by the DOE with respect to the nuclear activities of 
contractors acting on DOE's behalf. Subsection 170d. provides that the 
Secretary of Energy shall enter into agreements of indemnification with 
any person who may conduct activities under a contract with DOE that 
involve the risk of public liability and that are not subject to the 
financial protection requirements of the Nuclear Regulatory Commission 
system. DOE's Price-Anderson Act indemnification contract provisions 
are codified in the Department of Energy Acquisition Regulation (DEAR), 
which sets forth a standard nuclear indemnification clause, the Nuclear 
Hazard Indemnity Clause at 48 CFR 952.250-70, that is incorporated into 
all DOE contracts and subcontracts involving source, special nuclear, 
or by-product material.
    Subsection 170t.(2) of the AEA requires that the Secretary adjust 
for inflation the amount of indemnification provided under an 
indemnification agreement pursuant to subsection 170d. at least once 
during each 5-year period following July 1, 2003, in accordance with 
the aggregate percentage change in the Consumer Price Index (CPI). The 
CPI is defined in subsection 170t.(3) to mean the CPI for all urban 
consumers published by the Secretary of Labor. DOE's initial adjustment 
increased the indemnification amount to $11.961 billion, 74 FR 52793 
(October 14, 2009).
    This notice announces DOE's second periodic inflation adjustment 
for the 5-year period following July 1, 2013 based on the aggregate 
percentage change in the CPI between July 1, 2008 and July 1, 2013.
    The CPI in July 2008 was 219.964. In June 2013, the CPI was 
233.504. This difference represents an increase of approximately 6.16%. 
Application of this increase to the initial inflation-adjusted $11.961 
billion DOE indemnification amount results in an inflation-adjusted 
indemnification amount rounded to the nearest thousand of 
$12,697,798,000.
    The inflation adjustment under AEA, subsection 170t., applies only 
to a nuclear incident within the United States. There is no 
corresponding inflation adjustment for a nuclear incident outside the 
United States. Accordingly, the indemnification amount for a nuclear 
incident outside the United States continues to be $500 million.
    The next inflation adjustment will be based on the incremental 
change in the CPI between July 1, 2013 and the date of the adjustment, 
which will be no later than July 1, 2018.
    This notice of indemnification inflation adjustment is a ``rule'' 
as defined in the Administrative Procedure Act (APA) (5 U.S.C. 551(4)). 
However, the APA (5 U.S.C. 553(b)(B)) does not require an agency to use 
the public notice and comment process ``when the agency for good cause 
finds (and incorporates the finding and a brief statement of reasons 
therefore in the rules issued) that notice and public procedure thereon 
are impracticable, unnecessary, or contrary to the public interest.'' 
In this instance, DOE has concluded that solicitation of public comment 
is unnecessary. Congress has required DOE to adjust the amount of 
indemnification provided under an agreement of indemnification pursuant 
to section 170d. to reflect inflation in the initial and each 
subsequent 5-year period following July 1, 2003. The statute provides 
no discretion regarding the substance of the adjustment. DOE is 
required only to perform a ministerial computation to determine the 
relevant amount. On the same basis, DOE finds good cause, pursuant to 5 
U.S.C. 553(d)(3) to waive the requirement for a 30-day delay in the 
effective date for this rule. As such, this rule is effective September 
16, 2013.
    DOE has determined that this notice of indemnification inflation 
adjustment is the type of action that does not individually or 
cumulatively have a significant impact on the human environment as set 
forth in DOE's regulations implementing the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.). Specifically, the rule is 
covered under the categorical exclusion in paragraph A6 of Appendix A 
to subpart D, 10 CFR part 1021, which applies to rulemakings that are 
strictly procedural. Accordingly, neither an environmental assessment 
nor an environmental impact statement is required.

    Issued in Washington, DC, on September 6, 2013.
Ernest J. Moniz,
Secretary of Energy.
[FR Doc. 2013-22494 Filed 9-13-13; 8:45 am]
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