II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Convention on Supple5 mentary Compensation for Nuclear Damage Contingent 

6 Cost Allocation Act’’. 

7 SEC. 2. FINDINGS AND PURPOSE. 

8 (a) FINDINGS.—Congress finds that— 


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1 (1) section 170 of the Atomic Energy Act of 

2 1954 (42 U.S.C. 2210) (commonly known as the 

3 ‘‘Price-Anderson Act’’)— 

4 (A) provides a predictable legal framework 

5 necessary for nuclear projects; and 

6 (B) ensures prompt and equitable com7 pensation in the event of a nuclear incident in 

8 the United States; 

9 (2) section 170 of that Act, in effect, provides 

10 operators of nuclear powerplants with insurance for 

11 damage arising out of a nuclear incident and funds 

12 the insurance primarily through the assessment of a 

13 retrospective premium from each operator after the 

14 occurrence of a nuclear incident; 

15 (3) the Convention on Supplementary Com16 pensation for Nuclear Damage, done at Vienna on 

17 September 12, 1997, will establish a global system— 

18 (A) to provide a predictable legal frame19 work necessary for nuclear energy projects; and 

20 (B) to ensure prompt and equitable com21 pensation in the event of a nuclear incident; 

22 (4) the Convention benefits United States nu23 clear suppliers that face potentially unlimited liabil24 ity for a nuclear incidents outside the coverage of 

25 section 170 of the Atomic Energy Act of 1954 (42 


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1 U.S.C. 2210) by replacing a potentially open-ended 

2 liability with a predictable liability regime that, in 

3 effect, provides nuclear suppliers with insurance for 

4 damage arising out of such an incident; 

5 (5) the Convention also benefits United States 

6 nuclear facility operators that may be publicly liable 

7 for a Price-Anderson incident by providing an addi8 tional early source for a Price-Anderson incident by 

9 providing an additional early source of funds to com10 pensate damage arising out of the Price-Anderson 

11 incident; 

12 (6) the combined operation of the Convention, 

13 section 170 of the Atomic Energy Act of 1954 (42 

14 U.S.C. 2210), and this Act will augment the quan15 tity of assured funds available for victims in a wider 

16 variety of nuclear incidents while reducing the poten17 tial liability of United States suppliers without in18 creasing potential costs to United States operators; 

19 (7) the cost of those benefits is the obligation 

20 of the United States to contribute to the supple21 mentary compensation fund established by the Con22 vention; 

23 (8) any such contribution should be funded in 

24 a manner that neither upsets settled expectations 

25 based on the liability regime established under secVerDate Aug 31 2005 20:58 Sep 13, 2006 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3879.IS S3879

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1 tion 170 of the Atomic Energy Act of 1954 (42 

2 U.S.C. 2210) nor shifts to Federal taxpayers liabil3 ity risks for nuclear incidents at foreign installa4 tions; 

5 (9) with respect to a Price-Anderson incident, 

6 funds already available under section 170 of the 

7 Atomic Energy Act of 1954 (42 U.S.C. 2210) 

8 should be used; and 

9 (10) with respect to a nuclear incident not cov10 ered by section 170 of the Atomic Energy Act of 

11 1954 (42 U.S.C. 2210), a retrospective premium 

12 should be prorated among nuclear suppliers relieved 

13 from potential liability for which insurance is not 

14 available. 

15 (b) PURPOSE.—The purpose of this Act is to allocate 

16 the contingent costs associated with participation by the 

17 United States in the international nuclear liability com18 pensation system established by the Convention on Sup19 plementary Compensation for Nuclear Damage, done at 

20 Vienna on September 12, 1997— 

21 (1) with respect to a Price-Anderson incident, 

22 by using funds made available under section 170 of 

23 the Atomic Energy Act of 1954 (42 U.S.C. 2210) to 

24 cover the contingent costs in a manner that neither 


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1 increases the burdens nor decreases the benefits 

2 under section 170 of that Act; and 

3 (2) with respect to a covered incident that is 

4 not a Price-Anderson incident, by allocating the con5 tingent costs equitably, on the basis of risk, among 

6 the class of nuclear suppliers relieved by the Conven7 tion from the risk of potential liability resulting from 

8 any covered incident. 

9 SEC. 3. DEFINITIONS. 

10 In this Act: 

11 (1) COMMISSION.—The term ‘‘Commission’’ 

12 means the Nuclear Regulatory Commission. 

13 (2) CONTINGENT COST.—The term ‘‘contingent 

14 cost’’ means the cost to the United States in the 

15 event of a covered incident the amount of which is 

16 equal to the amount of funds the United States is 

17 obligated to make available under paragraph 1(b) of 

18 Article III of the Convention. 

19 (3) CONVENTION.—The term ‘‘Convention’’ 

20 means the Convention on Supplementary Compensa21 tion for Nuclear Damage, done at Vienna on Sep22 tember 12, 1997. 

23 (4) COVERED INCIDENT.—The term ‘‘covered 

24 incident’’ means a nuclear incident the occurrence of 


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1 which results in a request for funds pursuant to Ar2 ticle VII of the Convention. 

3 (5) COVERED INSTALLATION.—The term ‘‘cov4 ered installation’’ means a nuclear installation at 

5 which the occurrence of a nuclear incident could re6 sult in a request for funds under Article VII of the 

7 Convention. 

8 (6) COVERED PERSON.— 

9 (A) IN GENERAL.—The term ‘‘covered per10 son’’ means— 

11 (i) a United States person; and 

12 (ii) an individual or entity (including 

13 an agency or instrumentality of a foreign 

14 country) that— 

15 (I) is located in the United 

16 States; or 

17 (II) carries out an activity in the 

18 United States. 

19 (B) EXCLUSIONS.—The term ‘‘covered per20 son’’ does not include— 

21 (i) the United States; or 

22 (ii) any agency or instrumentality of 

23 the United States. 


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1 (7) NUCLEAR SUPPLIER.—The term ‘‘nuclear 

2 supplier’’ means a covered person (or a successor in 

3 interest of a covered person) that— 

4 (A) supplies facilities, equipment, fuel, 

5 services, or technology pertaining to the design, 

6 construction, operation, or decommissioning of 

7 a covered installation; or 

8 (B) transports nuclear materials that could 

9 result in a covered incident. 

10 (8) PRICE-ANDERSON INCIDENT.—The term 

11 ‘‘Price-Anderson incident’’ means a covered incident 

12 for which section 170 of the Atomic Energy Act of 

13 1954 (42 U.S.C. 2210) would make funds available 

14 to compensate for public liability (as defined in sec15 tion 11 of that Act (42 U.S.C. 2014)). 

16 (9) SECRETARY.—The term ‘‘Secretary’’ means 

17 the Secretary of Energy. 

18 (10) UNITED STATES.— 

19 (A) IN GENERAL.—The term ‘‘United 

20 States’’ has the meaning given the term in sec21 tion 11 of the Atomic Energy Act of 1954 (42 

22 U.S.C. 2014). 

23 (B) INCLUSIONS.—The term ‘‘United 

24 States’’ includes— 

25 (i) the Commonwealth of Puerto Rico; 


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1 (ii) any other territory or possession 

2 of the United States; 

3 (iii) the Canal Zone; and 

4 (iv) the waters of the United States 

5 territorial sea under Presidential Procla6 mation Number 5928, dated December 27, 

7 1988 (43 U.S.C. 1331 note). 

8 (11) UNITED STATES PERSON.—The term 

9 ‘‘United States person’’ means— 

10 (A) any individual who is a resident, na11 tional, or citizen of the United States (other 

12 than an individual residing outside of the 

13 United States and employed by a person who is 

14 not a United States person); and 

15 (B) any corporation, partnership, associa16 tion, joint stock company, business trust, unin17 corporated organization, or sole proprietorship 

18 that is organized under the laws of the United 

19 States. 

20 SEC. 4. USE OF PRICE-ANDERSON FUNDS. 

21 (a) IN GENERAL.—Funds made available under sec22 tion 170 of the Atomic Energy Act of 1954 (42 U.S.C. 

23 2210) shall be used to cover the contingent cost resulting 

24 from any Price-Anderson incident. 


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1 (b) EFFECT.—The use of funds pursuant to sub2 section (a) shall not reduce the limitation on public liabil3 ity established under section 170 e. of the Atomic Energy 

4 Act of 1954 (42 U.S.C. 2210(e)). 

5 SEC. 5. EFFECT ON AMOUNT OF PUBLIC LIABILITY. 

6 (a) IN GENERAL.—Funds made available to the 

7 United States under Article VII of the Convention with 

8 respect to a Price-Anderson incident shall be used to sat9 isfy public liability resulting from the Price-Anderson inci10 dent. 

11 (b) AMOUNT.—The amount of public liability allow12 able under section 170 of the Atomic Energy Act of 1954 

13 (42 U.S.C. 2210) relating to a Price-Anderson incident 

14 under subsection (a) shall be increased by an amount 

15 equal to the difference between— 

16 (1) the amount of funds made available for the 

17 Price-Anderson incident under Article VII of the 

18 Convention; and 

19 (2) the amount of funds used under section 4 

20 to cover the contingent cost resulting from the 

21 Price-Anderson incident. 

22 SEC. 6. RETROSPECTIVE RISK POOLING PROGRAM. 

23 (a) IN GENERAL.—Except as provided in subsection 

24 (b), each nuclear supplier shall participate in a retrospec25 tive risk pooling program in accordance with this Act to 


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1 cover the contingent cost resulting from a covered incident 

2 that is not a Price-Anderson incident. 

3 (b) DEFERRED PAYMENT.— 

4 (1) IN GENERAL.—The obligation of a nuclear 

5 supplier to participate in the retrospective risk pool6 ing program shall be deferred until the United 

7 States is called on to provide funds pursuant to Ar8 ticle VII of the Convention with respect to a covered 

9 incident that is not a Price-Anderson incident. 

10 (2) AMOUNT OF DEFERRED PAYMENT.—The 

11 amount of a deferred payment of a nuclear supplier 

12 under paragraph (1) shall be based on the risk-in13 formed assessment formula determined under para14 graph (3). 

15 (3) RISK-INFORMED ASSESSMENT FORMULA.— 

16 (A) IN GENERAL.—The Secretary shall, by 

17 regulation, determine the risk-informed assess18 ment formula for the allocation among nuclear 

19 suppliers of the contingent cost resulting from 

20 a covered incident that is not a Price-Anderson 

21 incident, taking into account risk factors such 

22 as— 

23 (i) the nature and intended purpose of 

24 the goods and services supplied by each 


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1 nuclear supplier to each covered installa2 tion; 

3 (ii) the quantity of the goods and 

4 services supplied by each nuclear supplier 

5 to each covered installation; 

6 (iii) the hazards associated with the 

7 supplied goods and services if the goods 

8 and services fail to achieve the intended 

9 purposes; 

10 (iv) the hazards associated with the 

11 covered installation to which the goods and 

12 services are supplied; 

13 (v) the legal, regulatory, and financial 

14 infrastructure associated with the covered 

15 installation to which the goods and services 

16 are supplied; and 

17 (vi) the hazards associated with par18 ticular forms of transportation. 

19 (B) FACTORS FOR CONSIDERATION.—In 

20 determining the formula, the Secretary may— 

21 (i) exclude— 

22 (I) goods and services with neg23 ligible risk; 


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1 (II) classes of goods and services 

2 not intended specifically for use in a 

3 nuclear installation; 

4 (III) a nuclear supplier with a de 

5 minimis share of the contingent cost; 

6 and 

7 (IV) a nuclear supplier no longer 

8 in existence for which there is no 

9 identifiable successor; and 

10 (ii) establish the period on which the 

11 risk assessment is based. 

12 (C) APPLICATION.—In applying the for13 mula, the Secretary shall not consider any cov14 ered installation or transportation for which 

15 funds would be available under section 170 of 

16 the Atomic Energy Act of 1954 (42 U.S.C. 

17 2210). 

18 SEC. 7. REPORTING. 

19 (a) COLLECTION OF INFORMATION.— 

20 (1) IN GENERAL.—The Secretary may collect 

21 information necessary for developing and imple22 menting the formula for calculating the deferred 

23 payment of a nuclear supplier under section 6(b). 

24 (2) PROVISION OF INFORMATION.—Each nu25 clear supplier and other appropriate persons shall 


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1 make available to the Secretary such information, 

2 reports, records, documents, and other data as the 

3 Secretary determines, by regulation, to be necessary 

4 or appropriate to develop and implement the formula 

5 under section 6(b)(3). 

6 (b) PRIVATE INSURANCE.—The Secretary shall make 

7 available to nuclear suppliers, and insurers of nuclear sup8 pliers, information to support the voluntary establishment 

9 and maintenance of private insurance against any risk for 

10 which nuclear suppliers may be required to pay deferred 

11 payments under this Act. 

12 SEC. 8. EFFECT ON LIABILITY. 

13 Nothing in any other law (including regulations) lim14 its liability for a covered incident to an amount equal to 

15 less than the amount prescribed in paragraph 1(a) of Arti16 cle IV of the Convention, unless the law— 

17 (1) specifically refers to this Act; and 

18 (2) explicitly repeals, alters, amends, modifies, 

19 impairs, displaces, or supersedes the effect of this 

20 section. 

21 SEC. 9. PAYMENTS TO AND BY THE UNITED STATES. 

22 (a) ACTION BY NUCLEAR SUPPLIERS.— 

23 (1) NOTIFICATION.—In the case of a request 

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1 derson incident, the Secretary shall notify each nu2 clear supplier of the amount of the deferred payment 

3 required to be made by the nuclear supplier. 

4 (2) PAYMENTS.— 

5 (A) IN GENERAL.—Except as provided in 

6 subparagraph (B), not later than 60 days after 

7 receipt of a notification under paragraph (1), a 

8 nuclear supplier shall pay to the general fund of 

9 the Treasury the deferred payment of the nu10 clear supplier required under paragraph (1). 

11 (B) ANNUAL PAYMENTS.—A nuclear sup12 plier may elect to prorate payment of the de13 ferred payment required under paragraph (1) in 

14 5 equal annual payments (including interest on 

15 the unpaid balance at the prime rate prevailing 

16 at the time the first payment is due). 

17 (3) VOUCHERS.—A nuclear supplier shall sub18 mit payment certification vouchers to the Secretary 

19 of the Treasury in accordance with section 3325 of 

20 title 31, United States Code. 

21 (b) USE OF FUNDS.— 

22 (1) IN GENERAL.—Amounts paid into the 

23 Treasury under subsection (a) shall be available to 

24 the Secretary of the Treasury, without further ap25 propriation and without fiscal year limitation, for 


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1 the purpose of making the contributions of public 

2 funds required to be made by the United States 

3 under the Convention. 

4 (2) ACTION BY SECRETARY OF TREASURY.— 

5 The Secretary of the Treasury shall pay the con6 tribution required under the Convention to the court 

7 of competent jurisdiction under Article XIII of the 

8 Convention with respect to the applicable covered in9 cident. 

10 (c) FAILURE TO PAY.—If a nuclear supplier fails to 

11 make a payment required under this section, the Secretary 

12 may take appropriate action to recover from the nuclear 

13 supplier— 

14 (1) the amount of the payment due from the 

15 nuclear supplier; 

16 (2) any applicable interest on the payment; and 

17 (3) a penalty of not more than twice the 

18 amount of the deferred payment due from the nu19 clear supplier. 

20 SEC. 10. LIMITATION ON JUDICIAL REVIEW; CAUSE OF AC21 TION. 

22 (a) LIMITATION ON JUDICIAL REVIEW.— 

23 (1) IN GENERAL.—In any civil action arising 

24 under the Convention over which Article XIII of the 

25 Convention grants jurisdiction to the courts of the 


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1 United States, any appeal or review by writ of man2 damus or otherwise with respect to a nuclear inci3 dent that is not a Price-Anderson incident shall be 

4 in accordance with chapter 83 of title 28, United 

5 States Code, except that the appeal or review shall 

6 occur in the United States Court of Appeals for the 

7 District of Columbia Circuit. 

8 (2) SUPREME COURT JURISDICTION.—Nothing 

9 in this subsection affects the jurisdiction of the Su10 preme Court of the United States under chapter 81 

11 of title 28, United States Code. 

12 (b) CAUSE OF ACTION.— 

13 (1) IN GENERAL.—Subject to paragraph (2), in 

14 any civil action arising under the Convention over 

15 which Article XIII of the Convention grants jurisdic16 tion to the courts of the United States, in addition 

17 to any other cause of action that may exist, an indi18 vidual or entity shall have a cause of action against 

19 the operator to recover for nuclear damage suffered 

20 by the individual or entity. 

21 (2) REQUIREMENT.—Paragraph (1) shall apply 

22 only if the individual or entity seeks a remedy for 

23 nuclear damage (as defined in Article I of the Con24 vention) that was caused by a nuclear incident (as 


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1 defined in Article I of the Convention) that is not a 

2 Price-Anderson incident. 

3 (3) EFFECT OF SUBSECTION.—Nothing in this 

4 subsection limits, modifies, extinguishes, or other5 wise affects any cause of action that would have ex6 isted in the absence of enactment of this subsection. 

7 SEC. 11. RIGHT OF RECOURSE. 

8 This Act does not provide to an operator of a covered 

9 installation any right of recourse under the Convention. 

10 SEC. 12. PROTECTION OF SENSITIVE UNITED STATES IN11 FORMATION. 

12 Nothing in the Convention or this Act requires the 

13 disclosure of— 

14 (1) any data that, at any time, was Restricted 

15 Data (as defined in section 11 of the Atomic Energy 

16 Act of 1954 (42 U.S.C. 2014)); 

17 (2) information relating to intelligence sources 

18 or methods protected by section 102A(i) of the Na19 tional Security Act of 1947 (50 U.S.C. 403–1(i)); or 

20 (3) national security information classified 

21 under Executive Order 12958 (50 U.S.C. 435 note; 

22 relating to classified national security information) 

23 (or a successor regulation). 


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1 SEC. 13. REGULATIONS. 

2 (a) IN GENERAL.—The Secretary or the Commission, 

3 as appropriate, may prescribe regulations to carry out sec4 tion 170 of the Atomic Energy Act of 1954 (42 U.S.C. 

5 2210) and this Act. 

6 (b) REQUIREMENT.—Rules prescribed under this sec7 tion shall ensure, to the maximum extent practicable, 

8 that— 

9 (1) the implementation of section 170 of the 

10 Atomic Energy Act of 1954 (42 U.S.C. 2210) and 

11 this Act is consistent and equitable; and 

12 (2) the financial and operational burden on a 

13 Commission licensee in complying with section 170 

14 of that Act is not greater as a result of the enact15 ment of this Act. 

16 (c) APPLICABILITY OF PROVISION.—Section 553 of 

17 title 5, United States Code, shall apply with respect to 

18 the promulgation of regulations under this section. 

19 (d) EFFECT OF SECTION.—The authority provided 

20 under this section is in addition to, and does not impair 

21 or otherwise affect, any other authority of the Secretary 

22 or the Commission to prescribe regulations. 


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1 SEC. 14. EFFECTIVE DATE. 

2 This Act takes effect on the date on which the Con3 vention enters into force for the United States under Arti4 cle XX of the Convention. 

Æ 


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