42 USC 17373 - Convention on Supplementary Compensation for Nuclear Damage contingent cost allocation

U.S Code last checked for updates: May 18, 2024

§ 17373.

Convention on Supplementary Compensation for Nuclear Damage contingent cost allocation

(a)

Findings and purpose

(1)

Findings

Congress finds that—

(A)

section 2210 of this title (commonly known as the “Price-Anderson Act”)—

(i)

provides a predictable legal framework necessary for nuclear projects; and

(ii)

ensures prompt and equitable compensation in the event of a nuclear incident in the United States;

(B)

the Price-Anderson 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;

(C)

the Convention on Supplementary Compensation for Nuclear Damage, done at Vienna on September 12, 1997, will establish a global system—

(i)

to provide a predictable legal framework necessary for nuclear energy projects; and

(ii)

to ensure prompt and equitable compensation in the event of a nuclear incident;

(D)

the Convention benefits United States nuclear suppliers that face potentially unlimited liability for nuclear incidents that are not covered by the Price-Anderson Act 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;

(E)

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 of funds to compensate damage arising out of the Price-Anderson incident;

(F)

the combined operation of the Convention, the Price-Anderson Act, and this section 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;

(G)

the cost of those benefits is the obligation of the United States to contribute to the supplementary compensation fund established by the Convention;

(H)

any such contribution should be funded in a manner that does not—

(i)

upset settled expectations based on the liability regime established under the Price-Anderson Act; or

(ii)

shift to Federal taxpayers liability risks for nuclear incidents at foreign installations;

(I)

with respect to a Price-Anderson incident, funds already available under the Price-Anderson Act should be used; and

(J)

with respect to a nuclear incident outside the United States not covered by the Price-Anderson Act, a retrospective premium should be prorated among nuclear suppliers relieved from potential liability for which insurance is not available.

(2)

Purpose

The purpose of this section 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—

(A)

with respect to a Price-Anderson incident, by using funds made available under section 2210 of this title to cover the contingent costs in a manner that neither increases the burdens nor decreases the benefits under section 2210 of this title; and

(B)

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.

(b)

Definitions

In this section:

(1)

Commission

(2)

Contingent cost

(3)

Convention

(4)

Covered incident

(5)

Covered installation

(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

(9)

Secretary

(10)

United States

(A)

In general

(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.

(c)

Use of Price-Anderson funds

(1)

In general

(2)

Effect

(d)

Effect on amount of public liability

(1)

In general

(2)

Amount

The amount of public liability allowable under section 2210 of this title relating to a Price-Anderson incident under paragraph (1) shall be increased by an amount equal to the difference between—

(A)

the amount of funds made available for the Price-Anderson incident under Article VII of the Convention; and

(B)

the amount of funds used under subsection (c) to cover the contingent cost resulting from the Price-Anderson incident.

(e)

Retrospective risk pooling program

(1)

In general

(2)

Deferred payment

(A)

In general

(B)

Amount of deferred payment

(C)

Risk-informed assessment formula

(i)

In general

Not later than 3 years after December 19, 2007, 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.

(ii)

Factors for consideration

In determining the formula, the Secretary may—

(I)

exclude—

(aa)

goods and services with negligible risk;

(bb)

classes of goods and services not intended specifically for use in a nuclear installation;

(cc)

a nuclear supplier with a de minimis share of the contingent cost; and

(dd)

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.

(iii)

Application

(iv)

Report

(f)

Reporting

(1)

Collection of information

(A)

In general

(B)

Provision of information

(2)

Private insurance

(g)

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 section; and

(2)

explicitly repeals, alters, amends, modifies, impairs, displaces, or supersedes the effect of this subsection.

(h)

Payments to and by the United States

(1)

Action by nuclear suppliers

(A)

Notification

(B)

Payments

(i)

In general

(ii)

Annual payments

(C)

Vouchers

(2)

Use of funds

(A)

In general

(B)

Action by Secretary of Treasury

(3)

Failure to pay

If a nuclear supplier fails to make a payment required under this subsection, the Secretary may take appropriate action to recover from the nuclear supplier—

(A)

the amount of the payment due from the nuclear supplier;

(B)

any applicable interest on the payment; and

(C)

a penalty of not more than twice the amount of the deferred payment due from the nuclear supplier.

(i)

Limitation on judicial review; cause of action

(1)

Limitation on judicial review

(A)

In general

(B)

Supreme Court jurisdiction

(2)

Cause of action

(A)

In general

(B)

Requirement

(C)

Savings provision

(j)

Right of recourse

(k)

Protection of sensitive United States information

Nothing in the Convention or this section requires the disclosure of—

(1)

any data that, at any time, was Restricted Data (as defined in section 2014 of this title);

(2)

information relating to intelligence sources or methods protected by section 3024(i) of title 50; or

(3)

national security information classified under Executive Order 12958 ([former] 50 U.S.C. 435 note; relating to classified national security information) (or a successor Executive Order or regulation).

(l)

Regulations

(1)

In general

(2)

Requirement

Rules prescribed under this subsection shall ensure, to the maximum extent practicable, that—

(A)

the implementation of section 2210 of this title and this section is consistent and equitable; and

(B)

the financial and operational burden on a Commission licensee in complying with section 2210 of this title is not greater as a result of the enactment of this section.

(3)

Applicability of provision

(4)

Effect of subsection

(m)

Effective date

(Pub. L. 110–140, title IX, § 934, Dec. 19, 2007, 121 Stat. 1741.)

cite as: 42 USC 17373