[Federal Register Volume 81, Number 251 (Friday, December 30, 2016)]
[Rules and Regulations]
[Pages 96347-96349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31368]
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NUCLEAR REGULATORY COMMISSION
10 CFR Part 140
[NRC-2016-0164]
RIN 3150-AJ81
Increase in the Maximum Amount of Primary Nuclear Liability
Insurance
AGENCY: Nuclear Regulatory Commission.
ACTION: Final rule.
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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is amending its
regulations to increase the required amount \1\ of primary nuclear
liability insurance from $375 million to $450 million for each nuclear
reactor that is licensed to operate, is designed for the production of
electrical energy, and has a rated capacity of 100,000 electrical
kilowatts or more. This change conforms to the provision in the Price-
Anderson Amendments Act of 1988 (Pub. L. 100-408) (Price-Anderson Act)
that the amount of primary financial protection required of licensees
by the NRC shall be the maximum amount available at reasonable cost and
on reasonable terms from private sources.
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\1\ The title listed in the information submitted by the NRC for
the Unified Agenda was ``Increase in the Maximum Limit of Primary
Nuclear Liability Insurance.'' The title was changed here to reflect
that the regulation makes reference to ``Maximum Amount.'' The use
of the term ``Maximum Limit'' is an incorrect description of the
statutory requirement and the regulation revision.
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DATES: Effective Date: This final rule is effective on January 1, 2017.
ADDRESSES: Please refer to Docket ID NRC-2016-0164 when contacting the
NRC about the availability of information for this action. You may
obtain publicly-available information related to this action by any of
the following methods:
Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID NRC-2016-0164. Address
questions about NRC dockets to Carol Gallagher; telephone: 301-415-
3463; email: [email protected]. For technical questions, contact
the individual listed in the FOR FURTHER INFORMATION CONTACT section of
this document.
NRC's Agencywide Documents Access and Management System
(ADAMS): You may obtain publicly-available documents online in the
ADAMS Public Documents collection at http://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``ADAMS Public Documents'' and
then select ``Begin Web-based ADAMS Search.'' For problems with ADAMS,
please contact the NRC's Public Document Room (PDR) reference staff at
1-800-397-4209, 301-415-4737, or by email to [email protected]. The
ADAMS accession number for each document referenced (if it is available
in ADAMS) is provided the first time that it is mentioned in the
SUPPLEMENTARY INFORMATION section.
NRC's PDR: You may examine and purchase copies of public
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555
Rockville Pike, Rockville, Maryland 20852.
FOR FURTHER INFORMATION CONTACT: Natreon Jordan, Office of Nuclear
Reactor Regulation, telephone: 301-415-7410, email:
[email protected]; U.S. Nuclear Regulatory Commission, Washington,
DC 20555-0001.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Discussion
II. Rulemaking Procedure
III. Section-By-Section Analysis
IV. Regulatory Flexibility Certification
V. Regulatory Analysis
VI. Backfit and Issue Finality
VII. Plain Writing
VIII. National Environmental Policy Act
IX. Paperwork Reduction Act
X. Congressional Review Act
I. Discussion
The NRC's regulations in part 140 of title 10 of the Code of
Federal Regulations (10 CFR), ``Financial Protection Requirements and
Indemnity Agreements,'' provide requirements and procedures for
implementing the financial protection requirements for certain
licensees and other persons under the Price-Anderson Act, incorporated
as Section 170 of the Atomic Energy Act of 1954, as amended (AEA). The
Price-Anderson Act states that, for each nuclear reactor that is
licensed to operate, is designed for the production of electrical
energy, and has a rated capacity of 100,000 electrical kilowatts or
more (henceforth referred to as large operating reactors), ``the amount
of primary financial protection required shall be the maximum amount
available at reasonable cost and on reasonable terms from private
sources.'' (Section 170(b) of the AEA) This requirement of the Price-
Anderson Act is implemented in the NRC's regulations at Sec.
140.11(a)(4), ``Amounts of financial protection for certain reactors.''
The current maximum amount of primary financial protection available
from private sources is $375 million. Therefore, Sec. 140.11(a)(4)
currently requires large commercial operating reactors to have and
maintain primary nuclear liability insurance in the amount of $375
million.
On June 15, 2016, American Nuclear Insurers (ANI), the underwriter
of American nuclear liability policies, acting on behalf of its member
companies, notified the NRC that it will be increasing ``its maximum
available primary nuclear liability limit from $375 million to $450
million, effective on January 1, 2017'' (ADAMS Accession No.
ML16239A254). The ANI makes such adjustments on a non-periodic basis.
The last such adjustment was made in 2010, and the NRC revised Sec.
140.11 to reflect the increased maximum available amount of primary
nuclear liability insurance (75 FR 16645; April 2, 2010).
[[Page 96348]]
To implement this adjustment, in accordance with the Price-Anderson
Act, the NRC is revising 10 CFR part 140 to require large operating
reactors to have and maintain $450 million in primary financial
protection.
The NRC is not currently revising the appendices in Sec. 140.91,
Sec. 140.92, or Sec. 140.93 that provide general forms of liability
policies and indemnity agreements that were determined to be acceptable
to the Commission. These appendices include historical insurance
providers and protection amounts for primary liability insurance that
are no longer in use (for example, values of $124 million and $36
million from the 1979 final rule (44 FR 20632; April 6, 1979) and
values of $200 million, $155 million, and $45 million from the 1989
final rule (54 FR 24157; June 6, 1989)). However, these appendices
continue to provide relevant general forms of policies and agreements.
II. Rulemaking Procedure
This final rule is being issued without prior public notice or
opportunity for public comments. The Administrative Procedure Act (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, the NRC finds, for good cause, that solicitation of
public comment on this final rule is unnecessary because the Price-
Anderson Act requires a non-discretionary adjustment in the maximum
amount required for primary nuclear liability insurance. Requesting
public comment on this non-discretionary adjustment, which is required
by statute, would not result in a change to the adjusted amount.
III. Section-By-Section Analysis
The following paragraphs describe the specific changes that are
reflected in this final rule.
Section 140.11 Amounts of Financial Protection for Certain Reactors
In paragraph (a)(4), this final rule removes ``$375,000,000'' and
replaces it with the increased maximum amount of primary nuclear
liability insurance of ``$450,000,000.''
IV. Regulatory Flexibility Certification
Under the Regulatory Flexibility Act (5 U.S.C. 605(b)), the NRC
certifies that this final rule does not have a significant economic
impact on a substantial number of small entities. This final rule
affects only the licensing and operation of nuclear power plants. The
companies that own these plants do not fall within the scope of the
definition of ``small entities'' set forth in the Regulatory
Flexibility Act or the size standards established by the NRC (10 CFR
2.810).
V. Regulatory Analysis
A regulatory analysis was not prepared for this final rule because
the change in the maximum amount of nuclear liability insurance is
mandated by the Price-Anderson Act.
VI. Backfit and Issue Finality
The NRC has determined that the backfit rule does not apply to this
final rule. A backfit analysis is not required for this final rule
because this amendment is mandated by the Price-Anderson Act.
VII. Plain Writing
The Plain Writing Act of 2010 (Pub. L. 111-274) requires Federal
agencies to write documents in a clear, concise, and well-organized
manner. The NRC has written this document to be consistent with the
Plain Writing Act as well as the Presidential Memorandum, ``Plain
Language in Government Writing,'' published June 10, 1998 (63 FR
31883).
VIII. National Environmental Policy Act
The NRC has determined that this final rule is the type of action
described in categorical exclusion 10 CFR 51.22(c)(1). Therefore,
neither an environmental impact statement nor an environmental
assessment has been prepared for this final rule.
IX. Paperwork Reduction Act
This final rule does not contain any new or amended collections of
information subject to the Paperwork Reduction Act of 1995 (44 U.S.C.
3501 et seq.). Existing collections of information were approved by the
Office of Management and Budget (OMB), approval number 3150-0039.
Public Protection Notification
The NRC may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless the document requesting
or requiring the collection displays a currently valid OMB control
number.
X. Congressional Review Act
This final rule is a rule as defined in the Congressional Review
Act (5 U.S.C. 801-808). However, the Office of Management and Budget
has not found it to be a major rule as defined in the Congressional
Review Act.
List of Subjects in 10 CFR Part 140
Criminal penalties, Extraordinary nuclear occurrence, Insurance,
Intergovernmental relations, Nuclear materials, Nuclear power plants
and reactors, Penalties, Reporting and recordkeeping requirements.
For the reasons set out in the preamble and under the authority of
the Atomic Energy Act of 1954, as amended; the Energy Reorganization
Act of 1974, as amended; and 5 U.S.C. 552 and 553, the NRC is adopting
the following amendments to 10 CFR part 140.
PART 140--FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY
AGREEMENTS
0
1. The authority citation for part 140 continues to read as follows:
Authority: Atomic Energy Act of 1954, secs. 161, 170, 223, 234
(42 U.S.C. 2201, 2210, 2273, 2282); Energy Reorganization Act of
1974, secs. 201, 202 (42 U.S.C. 5841, 5842); 44 U.S.C. 3504 note.
0
2. In Sec. 140.11, paragraph (a)(4) is revised to read as follows:
Sec. 140.11 Amounts of financial protection for certain reactors.
(a) * * *
(4) In an amount equal to the sum of $450,000,000 and the amount
available as secondary financial protection (in the form of private
liability insurance available under an industry retrospective rating
plan providing for deferred premium charges equal to the pro rata share
of the aggregate public liability claims and costs, excluding costs
payment of which is not authorized by section 170o.(1)(D) of the Act,
in excess of that covered by primary financial protection) for each
nuclear reactor which is licensed to operate and which is designed for
the production of electrical energy and has a rated capacity of 100,000
electrical kilowatts or more: Provided, however, that under such a plan
for deferred premium charges for each nuclear reactor that is licensed
to operate, no more than $121,255,000 with respect to any nuclear
incident (plus any surcharge assessed under subsection 170o.(1)(E) of
the Act) and no more than $18,963,000 per incident within one calendar
year shall be charged. Except that, where a person is authorized to
operate a combination of 2 or more nuclear reactors located at a single
site, each of which has a rated capacity of 100,000 or more electrical
kilowatts but not more than 300,000 electrical kilowatts with a
combined rated
[[Page 96349]]
capacity of not more than 1,300,000 electrical kilowatts, each such
combination of reactors shall be considered to be a single nuclear
reactor for the sole purpose of assessing the applicable financial
protection required under this section.
* * * * *
Dated at Rockville, Maryland, this 15th day of December 2016.
For the Nuclear Regulatory Commission.
Michael R. Johnson,
Acting Executive Director for Operations.
[FR Doc. 2016-31368 Filed 12-29-16; 8:45 am]
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