II 

Calendar No. 636 

109TH CONGRESS 

2D SESSION S. 3879 

[Report No. 109–346] 

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 (for himself and Mr. VOINOVICH) introduced the following bill; 

which was read twice and referred to the Committee on Environment and 

Public Works 

SEPTEMBER 25, 2006 

Reported by Mr. INHOFE, with amendments 

[Omit the part struck through and insert the part printed in italic] 

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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Convention on Supple3 mentary Compensation for Nuclear Damage Contingent 

4 Cost Allocation Act’’. 

5 SEC. 2. FINDINGS AND PURPOSE. 

6 (a) FINDINGS.—Congress finds that— 

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

8 1954 (42 U.S.C. 2210) (commonly known as the 

9 ‘‘Price-Anderson Act’’)— 

10 (A) provides a predictable legal framework 

11 necessary for nuclear projects; and 

12 (B) ensures prompt and equitable com13 pensation in the event of a nuclear incident in 

14 the United States; 

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

16 operators of nuclear powerplants with insurance for 

17 damage arising out of a nuclear incident and funds 

18 the insurance primarily through the assessment of a 

19 retrospective premium from each operator after the 

20 occurrence of a nuclear incident; 

21 (3) the Convention on Supplementary Com22 pensation for Nuclear Damage, done at Vienna on 

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

24 (A) to provide a predictable legal frame25 work necessary for nuclear energy projects; and 


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1 (B) to ensure prompt and equitable com2 pensation in the event of a nuclear incident; 

3 (4) the Convention benefits United States nu4 clear suppliers that face potentially unlimited liabil5 ity for a nuclear incidents outside the coverage of 

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

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

8 liability with a predictable liability regime that, in 

9 effect, provides nuclear suppliers with insurance for 

10 damage arising out of such an incident; 

11 (5) the Convention also benefits United States 

12 nuclear facility operators that may be publicly liable 

13 for a Price-Anderson incident by providing an addi14 tional early source for a Price-Anderson incident by 

15 providing an additional early source of funds to com16 pensate damage arising out of the Price-Anderson 

17 incident; 

18 (6) the combined operation of the Convention, 

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

20 U.S.C. 2210), and this Act will augment the quan21 tity of assured funds available for victims in a wider 

22 variety of nuclear incidents while reducing the poten23 tial liability of United States suppliers without in24 creasing potential costs to United States operators; 


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

2 of the United States to contribute to the supple3 mentary compensation fund established by the Con4 vention; 

5 (8) any such contribution should be funded in 

6 a manner that neither upsets settled expectations 

7 based on the liability regime established under sec8 tion 170 of the Atomic Energy Act of 1954 (42 

9 U.S.C. 2210) nor shifts to Federal taxpayers liabil10 ity risks for nuclear incidents at foreign installa11 tions; 

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

13 funds already available under section 170 of the 

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

15 should be used; and 

16 (10) with respect to a nuclear incident outside 

17 the United States not covered by section 170 of the 

18 Atomic Energy Act of 1954 (42 U.S.C. 2210), a ret19 rospective premium should be prorated among nu20 clear suppliers relieved from potential liability for 

21 which insurance is not available. 

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

23 the contingent costs associated with participation by the 

24 United States in the international nuclear liability com25 pensation system established by the Convention on SupVerDate Aug 31 2005 23:46 Sep 25, 2006 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3879.RS S3879

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1 plementary Compensation for Nuclear Damage, done at 

2 Vienna on September 12, 1997— 

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

4 by using funds made available under section 170 of 

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

6 cover the contingent costs in a manner that neither 

7 increases the burdens nor decreases the benefits 

8 under section 170 of that Act; and 

9 (2) with respect to a covered incident outside 

10 the United States that is not a Price-Anderson inci11 dent, by allocating the contingent costs equitably, on 

12 the basis of risk, among the class of nuclear sup13 pliers relieved by the Convention from the risk of po14 tential liability resulting from any covered incident 

15 outside the United States. 

16 SEC. 3. DEFINITIONS. 

17 In this Act: 

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

19 means the Nuclear Regulatory Commission. 

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

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

22 event of a covered incident the amount of which is 

23 equal to the amount of funds the United States is 

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

25 Article III of the Convention. 


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

2 means the Convention on Supplementary Compensa3 tion for Nuclear Damage, done at Vienna on Sep4 tember 12, 1997. 

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

6 incident’’ means a nuclear incident the occurrence of 

7 which results in a request for funds pursuant to Ar8 ticle VII of the Convention. 

9 (5) COVERED INSTALLATION.—The term ‘‘cov10 ered installation’’ means a nuclear installation at 

11 which the occurrence of a nuclear incident could re12 sult in a request for funds under Article VII of the 

13 Convention. 

14 (6) COVERED PERSON.— 

15 (A) IN GENERAL.—The term ‘‘covered per16 son’’ means— 

17 (i) a United States person; and 

18 (ii) an individual or entity (including 

19 an agency or instrumentality of a foreign 

20 country) that— 

21 (I) is located in the United 

22 States; or 

23 (II) carries out an activity in the 

24 United States. 


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1 (B) EXCLUSIONS.—The term ‘‘covered per2 son’’ does not include— 

3 (i) the United States; or 

4 (ii) any agency or instrumentality of 

5 the United States. 

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

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

8 interest of a covered person) that— 

9 (A) supplies facilities, equipment, fuel, 

10 services, or technology pertaining to the design, 

11 construction, operation, or decommissioning of 

12 a covered installation; or 

13 (B) transports nuclear materials that could 

14 result in a covered incident. 

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

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

17 for which section 170 of the Atomic Energy Act of 

18 1954 (42 U.S.C. 2210) would make funds available 

19 to compensate for public liability (as defined in sec20 tion 11 of that Act (42 U.S.C. 2014)). 

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

22 the Secretary of Energy. 

23 (10) UNITED STATES.— 

24 (A) IN GENERAL.—The term ‘‘United 

25 States’’ has the meaning given the term in secVerDate Aug 31 2005 23:46 Sep 25, 2006 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3879.RS S3879

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1 tion 11 of the Atomic Energy Act of 1954 (42 

2 U.S.C. 2014). 

3 (B) INCLUSIONS.—The term ‘‘United 

4 States’’ includes— 

5 (i) the Commonwealth of Puerto Rico; 

6 (ii) any other territory or possession 

7 of the United States; 

8 (iii) the Canal Zone; and 

9 (iv) the waters of the United States 

10 territorial sea under Presidential Procla11 mation Number 5928, dated December 27, 

12 1988 (43 U.S.C. 1331 note). 

13 (11) UNITED STATES PERSON.—The term 

14 ‘‘United States person’’ means— 

15 (A) any individual who is a resident, na16 tional, or citizen of the United States (other 

17 than an individual residing outside of the 

18 United States and employed by a person who is 

19 not a United States person); and 

20 (B) any corporation, partnership, associa21 tion, joint stock company, business trust, unin22 corporated organization, or sole proprietorship 

23 that is organized under the laws of the United 

24 States. 


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

2 (a) IN GENERAL.—Funds made available under sec3 tion 170 of the Atomic Energy Act of 1954 (42 U.S.C. 

4 2210) shall be used to cover the contingent cost resulting 

5 from any Price-Anderson incident. 

6 (b) EFFECT.—The use of funds pursuant to sub7 section (a) shall not reduce the limitation on public liabil8 ity established under section 170 e. of the Atomic Energy 

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

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

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

12 United States under Article VII of the Convention with 

13 respect to a Price-Anderson incident shall be used to sat14 isfy public liability resulting from the Price-Anderson inci15 dent. 

16 (b) AMOUNT.—The amount of public liability allow17 able under section 170 of the Atomic Energy Act of 1954 

18 (42 U.S.C. 2210) relating to a Price-Anderson incident 

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

20 equal to the difference between— 

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

22 Price-Anderson incident under Article VII of the 

23 Convention; and 

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

25 to cover the contingent cost resulting from the 

26 Price-Anderson incident. 


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1 SEC. 6. RETROSPECTIVE RISK POOLING PROGRAM. 

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

3 (b), each nuclear supplier shall participate in a retrospec4 tive risk pooling program in accordance with this Act to 

5 cover the contingent cost resulting from a covered incident 

6 outside the United States that is not a Price-Anderson inci7 dent. 

8 (b) DEFERRED PAYMENT.— 

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

10 supplier to participate in the retrospective risk pool11 ing program shall be deferred until the United 

12 States is called on to provide funds pursuant to Ar13 ticle VII of the Convention with respect to a covered 

14 incident that is not a Price-Anderson incident. 

15 (2) AMOUNT OF DEFERRED PAYMENT.—The 

16 amount of a deferred payment of a nuclear supplier 

17 under paragraph (1) shall be based on the risk-in18 formed assessment formula determined under para19 graph (3). 

20 (3) RISK-INFORMED ASSESSMENT FORMULA.— 

21 (A) IN GENERAL.—The Not later than 3 

22 years after the date of enactment of this Act, and 

23 every 5 years thereafter, the Secretary shall, by 

24 regulation, determine the risk-informed assess25 ment formula for the allocation among nuclear 

26 suppliers of the contingent cost resulting from 


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1 a covered incident that is not a Price-Anderson 

2 incident, taking into account risk factors such 

3 as— 

4 (i) the nature and intended purpose of 

5 the goods and services supplied by each 

6 nuclear supplier to each covered installa7 tion outside the United States; 

8 (ii) the quantity of the goods and 

9 services supplied by each nuclear supplier 

10 to each covered installation outside the 

11 United States; 

12 (iii) the hazards associated with the 

13 supplied goods and services if the goods 

14 and services fail to achieve the intended 

15 purposes; 

16 (iv) the hazards associated with the 

17 covered installation outside the United 

18 States to which the goods and services are 

19 supplied; 

20 (v) the legal, regulatory, and financial 

21 infrastructure associated with the covered 

22 installation outside the United States to 

23 which the goods and services are supplied; 

24 and 


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1 (vi) the hazards associated with par2 ticular forms of transportation. 

3 (B) FACTORS FOR CONSIDERATION.—In 

4 determining the formula, the Secretary may— 

5 (i) exclude— 

6 (I) goods and services with neg7 ligible risk; 

8 (II) classes of goods and services 

9 not intended specifically for use in a 

10 nuclear installation; 

11 (III) a nuclear supplier with a de 

12 minimis share of the contingent cost; 

13 and 

14 (IV) a nuclear supplier no longer 

15 in existence for which there is no 

16 identifiable successor; and 

17 (ii) establish the period on which the 

18 risk assessment is based. 

19 (C) APPLICATION.—In applying the for20 mula, the Secretary shall not consider any cov21 ered installation or transportation for which 

22 funds would be available under section 170 of 

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

24 2210). 


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1 (D) REPORT.—Not later than 5 years after 

2 the date of enactment of this Act, the Secretary 

3 shall submit to the Committee on Environment 

4 and Public Works of the Senate and the Com5 mittee on Energy and Commerce of the House of 

6 Representatives a report on whether there is a 

7 need for continuation or amendment of this Act, 

8 taking into account the effects of the implementa9 tion of the Convention on the United States nu10 clear industry and suppliers. 

11 SEC. 7. REPORTING. 

12 (a) COLLECTION OF INFORMATION.— 

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

14 information necessary for developing and imple15 menting the formula for calculating the deferred 

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

17 (2) PROVISION OF INFORMATION.—Each nu18 clear supplier and other appropriate persons shall 

19 make available to the Secretary such information, 

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

21 Secretary determines, by regulation, to be necessary 

22 or appropriate to develop and implement the formula 

23 under section 6(b)(3). 

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

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1 pliers, information to support the voluntary establishment 

2 and maintenance of private insurance against any risk for 

3 which nuclear suppliers may be required to pay deferred 

4 payments under this Act. 

5 SEC. 8. EFFECT ON LIABILITY. 

6 Nothing in any other law (including regulations) lim7 its liability for a covered incident to an amount equal to 

8 less than the amount prescribed in paragraph 1(a) of Arti9 cle IV of the Convention, unless the law— 

10 (1) specifically refers to this Act; and 

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

12 impairs, displaces, or supersedes the effect of this 

13 section. 

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

15 (a) ACTION BY NUCLEAR SUPPLIERS.— 

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

17 for funds under Article VII of the Convention result18 ing from a covered incident that is not a Price-An19 derson incident, the Secretary shall notify each nu20 clear supplier of the amount of the deferred payment 

21 required to be made by the nuclear supplier. 

22 (2) PAYMENTS.— 

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

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

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


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1 nuclear supplier shall pay to the general fund of 

2 the Treasury the deferred payment of the nu3 clear supplier required under paragraph (1). 

4 (B) ANNUAL PAYMENTS.—A nuclear sup5 plier may elect to prorate payment of the de6 ferred payment required under paragraph (1) in 

7 5 equal annual payments (including interest on 

8 the unpaid balance at the prime rate prevailing 

9 at the time the first payment is due). 

10 (3) VOUCHERS.—A nuclear supplier shall sub11 mit payment certification vouchers to the Secretary 

12 of the Treasury in accordance with section 3325 of 

13 title 31, United States Code. 

14 (b) USE OF FUNDS.— 

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

16 Treasury under subsection (a) shall be available to 

17 the Secretary of the Treasury, without further ap18 propriation and without fiscal year limitation, for 

19 the purpose of making the contributions of public 

20 funds required to be made by the United States 

21 under the Convention. 

22 (2) ACTION BY SECRETARY OF TREASURY.— 

23 The Secretary of the Treasury shall pay the con24 tribution required under the Convention to the court 

25 of competent jurisdiction under Article XIII of the 


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1 Convention with respect to the applicable covered in2 cident. 

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

4 make a payment required under this section, the Secretary 

5 may take appropriate action to recover from the nuclear 

6 supplier— 

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

8 nuclear supplier; 

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

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

11 amount of the deferred payment due from the nu12 clear supplier. 

13 SEC. 10. LIMITATION ON JUDICIAL REVIEW; CAUSE OF AC14 TION. 

15 (a) LIMITATION ON JUDICIAL REVIEW.— 

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

17 under the Convention over which Article XIII of the 

18 Convention grants jurisdiction to the courts of the 

19 United States, any appeal or review by writ of man20 damus or otherwise with respect to a nuclear inci21 dent that is not a Price-Anderson incident shall be 

22 in accordance with chapter 83 of title 28, United 

23 States Code, except that the appeal or review shall 

24 occur in the United States Court of Appeals for the 

25 District of Columbia Circuit. 


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1 (2) SUPREME COURT JURISDICTION.—Nothing 

2 in this subsection affects the jurisdiction of the Su3 preme Court of the United States under chapter 81 

4 of title 28, United States Code. 

5 (b) CAUSE OF ACTION.— 

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

7 any civil action arising under the Convention over 

8 which Article XIII of the Convention grants jurisdic9 tion to the courts of the United States, in addition 

10 to any other cause of action that may exist, an indi11 vidual or entity shall have a cause of action against 

12 the operator to recover for nuclear damage suffered 

13 by the individual or entity. 

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

15 only if the individual or entity seeks a remedy for 

16 nuclear damage (as defined in Article I of the Con17 vention) that was caused by a nuclear incident (as 

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

19 Price-Anderson incident. 

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

21 subsection limits, modifies, extinguishes, or other22 wise affects any cause of action that would have ex23 isted in the absence of enactment of this subsection. 


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1 SEC. 11. RIGHT OF RECOURSE. 

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

3 installation any right of recourse under the Convention. 

4 SEC. 12. PROTECTION OF SENSITIVE UNITED STATES IN5 FORMATION. 

6 Nothing in the Convention or this Act requires the 

7 disclosure of— 

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

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

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

11 (2) information relating to intelligence sources 

12 or methods protected by section 102A(i) of the Na13 tional Security Act of 1947 (50 U.S.C. 403–1(i)); or 

14 (3) national security information classified 

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

16 relating to classified national security information) 

17 (or a successor regulation). 

18 SEC. 13. REGULATIONS. 

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

20 as appropriate, may prescribe regulations to carry out sec21 tion 170 of the Atomic Energy Act of 1954 (42 U.S.C. 

22 2210) and this Act. 

23 (b) REQUIREMENT.—Rules prescribed under this sec24 tion shall ensure, to the maximum extent practicable, 

25 that— 


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1 (1) the implementation of section 170 of the 

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

3 this Act is consistent and equitable; and 

4 (2) the financial and operational burden on a 

5 Commission licensee in complying with section 170 

6 of that Act is not greater as a result of the enact7 ment of this Act. 

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

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

10 the promulgation of regulations under this section. 

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

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

13 or otherwise affect, any other authority of the Secretary 

14 or the Commission to prescribe regulations. 

15 SEC. 14. EFFECTIVE DATE. 

16 This Act takes effect on the date on which the Con17 vention enters into force for the United States under Arti18 cle XX of the Convention. 


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Calendar No. 636 

109TH CONGRESS 

2D SESSION S. 3879 

[Report No. 109

–346] 

A BILL 

To implement the Convention on Supplementary 

other purposes. Compensation for Nuclear Damage, and for 

SEPTEMBER 25, 2006 

Reported with amendments 


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