Convention on Supplementary Compensation for Nuclear Damage Contingent Cost Allocation Act - (Sec. 4) Declares that certain funds designated under provisions (commonly known as the Price-Anderson Act) of the Atomic Energy Act of 1954 to provide indemnification shall be used to cover the contingent cost resulting from any nuclear incident for which such funds would be available to compensate for public liability (Price-Anderson incident).
(Sec. 5) States that certain funds made available to the United States under the Convention on Supplementary Compensation for Nuclear Damage (Convention) shall be used to satisfy public liability resulting from a Price-Anderson incident.
(Sec. 6) Requires participation by each nuclear supplier in a retrospective risk pooling program to cover the contingent cost resulting from a nuclear incident outside the United States that is not a Price-Anderson incident.
Directs the Secretary of Energy to determine the risk-informed assessment formula for the allocation among nuclear suppliers of the contingent cost resulting from a covered incident outside the United States that is not a Price-Anderson incident, taking specified risk factors into account.
Directs the Secretary to report to certain congressional committees 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) Authorizes the Secretary to collect information necessary for developing and implementing the formula for calculating a nuclear supplier's deferred payment.
Requires each nuclear supplier to make available to the Secretary such information as the Secretary determines, by regulation, to be necessary or appropriate to develop and implement the risk-informed assessment formula.
Requires the Secretary to make information available to nuclear suppliers and their insurers so as to support the voluntary establishment and maintenance of private insurance against any risk for which such suppliers may be required to pay deferred payments.
(Sec. 9) Requires the Secretary to notify each nuclear supplier of the amount of the deferred payment it is required to make if funds are requested under the Convention resulting from a covered incident that is not a Price-Anderson incident.
Requires each nuclear supplier to make such a payment within 60 days after receiving notice, but allows a supplier to prorate the payment in equal amounts over five years. Requires a supplier to submit payment certification vouchers to the Secretary of the Treasury.
Authorizes the Secretary of Energy to take appropriate action to recover any payment a supplier fails to make, plus interest and a penalty of up to double the amount due.
(Sec. 10) Prescribes requirements for judicial review in a civil cause of action arising under the Convention.
(Sec. 11) Declares that this Act does not provide an operator of a covered installation with any right of recourse under the Convention.
(Sec. 12) Declares that nothing in the Convention or this Act requires disclosure of sensitive U.S. information.
(Sec. 13) Authorizes either the Secretary or the Nuclear Regulatory Commission to prescribe regulations to implement this Act.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3879 Introduced in Senate (IS)]
109th CONGRESS
2d Session
S. 3879
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 introduced the following bill; which was read twice and
referred to the Committee on Environment and Public Works
_______________________________________________________________________
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 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 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.
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 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.--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;
(ii) the quantity of the goods and services
supplied by each nuclear supplier to each
covered installation;
(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 to which the goods and
services are supplied;
(v) the legal, regulatory, and financial
infrastructure associated with the covered
installation 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).
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.
<all>
Introduced in Senate
Read twice and referred to the Committee on Environment and Public Works.
Committee on Environment and Public Works. Ordered to be reported with an amendment favorably.
Committee on Environment and Public Works. Reported by Senator Inhofe with amendments. With written report No. 109-346.
Committee on Environment and Public Works. Reported by Senator Inhofe with amendments. With written report No. 109-346.
Placed on Senate Legislative Calendar under General Orders. Calendar No. 636.
Measure laid before Senate by unanimous consent. (consideration: CR 9/29/2006 S10798-10802)
Passed/agreed to in Senate: Passed Senate with an amendment by Unanimous Consent.(text: CR 9/29/2006 S1080-10802)
Passed Senate with an amendment by Unanimous Consent. (text: CR 9/29/2006 S1080-10802)
Message on Senate action sent to the House.
Received in the House.
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Held at the desk.
Referred to the House Committee on Energy and Commerce.