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Republic of the Philippines "3 RECEIVED Z
HOUSE OF REPRESENTATIVES (care: JAN 30 2017
Quezon City, Metro Manila ( Twig: __
OH uc. _
SEVENTEENTH CONGRESS a Ss
First Regular Session e oe
‘ingy Of

House Bill No, 48°78

Introduced by Representative Ron P, Salo

EXPLANATORY NOTE

Currently, there are two (2) regulatory agencies in the Philippines responsible
for the regulation of ionizing radiation: the Philippine Nuclear Research Institute
(PNRI), by virtue of Republic Act Nos. 2067 (the Science Act of 1958), 3589, and
6207 (the Atomic Energy Regulatory and Liability Act of 1968); and the Center for
Device Regulation, Radiation Health and Research of the Food and Drug
Administration (FDA-CDRRHR), by virtue of Republic Act No. 9711. This set-up
creates an undue burden wherein many facilities, most notably in healthcare, have to
obtain two licenses for the use of ionizing radiation

According to its mandate, the PNRI performs both regulatory and promotion
functions. Formerly the Philippine Atomic Energy Commission (PAEC) — which was
mandated to promote scientific and technological research and development, foster
invention, and utilize scientific knowledge as effective instrument for the promotion of
national progress, as well as to perform regulatory functions including issuing
licenses for the use of radioactive material - the PNRI was reorganized and placed
under the Department of Science and Technology (DOST) by virtue of Executive
Order No. 128 in 1987. The dual role of promotion and control of the peaceful use of
atomic energy was maintained in its functions, This is not in conformity with current
internationally recognized safety principles which require that the regulatory body be
effectively independent of the body charged with the promotion and utilization of
nuclear energy. The PNRI is currently the only research and development institute
under the DOST with quasi-judicial functions

On the other hand, the FDA-CDRRHR was formerly the Bureau of Health
Devices and Technology, or BHDT, which was created under the Department of
Health by virtue of Presidential Decree No. 480, as amended by Presidential Decree
No. 1372. Among the primary functions of the BHDT was to control and regulate x-
rays and other electrically generated radiation devices. In 2004, two Radiation Safety
Infrastructure (RaSIA) audits of both PNRI and the BHDT were carried out by the
International Atomic Energy Agency (IAEA), to which the Philippines is a member.
Recommendations from this audit led to the re-structuring of the BHDT into the FDA
as the CDRRHR, effectively independent from their licensees, and with no promotion
function in their mandate under Republic Act No. 9711

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This proposed measure seeks to unify the nuclear regulatory body in the
Philippines, to include the relocation of all regulatory activities being undertaken in
the PNRI under the DOST and those in the FDA-CDRRHR under the DOH, which
are specific to ionizing radiation regulation, into a single unified governmental
organizational structure.

The IAEA 2010 Safety Standards, General Safety Requirements states:
“Where several authorities are involved, the government shall specify clearly the
responsibilities and functions of each authority within the governmental, legal, and
regulatory framework for safety.’ (Part 1: Governmental, Legal, and Regulatory
Framework for Safety, par. 2.6, page 6). Further, Part 2, Requirement 4, page 6
states: "The government shall ensure that the regulatory body is effectively
independent in its safety related decision-making and that it has functional
separation from entities having responsibilities or interests that could unduly
influence its decision making

Itis imperative that we subscribe to international safety standards to which we
are a signatory, primarily to ensure the protection of the citizens and the
environment. This bill aims to provide the legal basis for an independent, unified
nuclear regulatory body in the Philippines and to specify and clarify the functions of
this body

In view of the forgoing, the immediate passage of this bill is earnestly sought.

now P.’SALO

Kabayan Party-List

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HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

4878

House Bill No.

INTRODUCED BY REPRESENTATIVE RON P. SALO

AN ACT
CREATING THE PHILIPPINE RADIATION AND NUCLEAR REGULATORY
COMMISSION, PROVIDING FOR THE REGULATION AND CONTROL OF
NUCLEAR AND OTHER RADIOACTIVE MATERIALS, FACILITIES, AND
RADIATION GENERATING EQUIPMENT, APPROPRIATING FUNDS
THEREFORE, AND FOR OTHER PURPOSES.

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

ARTICLE |
GENERAL PROVISIONS:

SECTION 1. Short Title. - This Act shall be known as the “Comprehensive
Radiation and Nuclear Regulation Act of 2016”.

SEC. 2. Declaration of Policy. — It is hereby declared to be the policy of the State
to:

a) hamess science and technology, including utilization of nuclear energy and

ionizing radiation to improve the health and prosperity of the inhabitants of the

Philippines, contribute to the general welfare, and accelerate scientific,

technological, agricultural, commercial and industrial progress;

use nuclear and other radioactive materials, facilities and radiation generating

equipment, hereinafter referred to as ionizing radiation sources for peaceful

purposes as embodied in the Constitution;

) assure the safety and security of ionizing radiation sources; and

) fulfill obligations in bilateral, regional or international agreements and treaties
and any protocols thereto on safety, security and safeguards of ionizing
radiation sources.

b)

SEC. 3. Objectives. - The objectives of this Act are:
a) to provide a legal framework that adequately protects the public and the

environment from the harmful effects of ionizing radiation; and for the safety
and security of ionizing radiation sources,

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b) to establish the Philippine Radiation and Nuclear Regulatory Commission,
hereinafter referred to as the Commission, for the purpose of exercising
regulatory control over the peaceful uses of ionizing radiation sources, which
are conducted in the territory or under the jurisdiction or control of the
Republic of the Philippines;

to establish and maintain a regulatory system for the formulation of and/or
adoption of standards, licensing, inspection and enforcement to govern all
activities and practices falling within the scope of this Act; and

to enable the Philippines to meet its obligations under relevant international
instruments entered into by the Philippines such as: Vienna Convention on
Civil Liability for Nuclear Damage; the Treaty on the Non-Proliferation of
Nuclear Weapons (NPT); the Treaty on Southeast Asia Nuclear Weapon-Free
Zone; Comprehensive Test Ban Treaty; the Agreement between the
Philippines and the International Atomic Energy Agency (IAEA) for the
Application of Safeguards in Connection with the NPT (the Safeguards
Agreement); Additional Protocol to Safeguards Agreement, Agreement on the
Privileges and Immunities of the IAEA; Convention on the Physical Protection
of Nuclear Material, UN Resolutions on Nuclear Security, and other
instruments.

°)

d)

SEC. 4, Scope. ~ This Act shall apply to all activities and practices including, but not
limited to: production, possession, use, import, export, transport, transfer, handling
and management or any other activities or practices identified by the Commission
involving ionizing radiation sources and such other sources and activities and
practices as may be determined by the Commission.

This Act shall not apply to sources and activities or practices excluded from
regulatory control through regulations established by the Commission. Neither shall it
apply to non-ionizing radiation sources and related facilities which are retained within
the responsibilities of the Department of Health.

SEC. 5. Definitions, - For purposes of this Act:

a) Activities. means the production, manufacture, distribution, sale, acquisition,
possession, import, export, handling, use, transport, and transfer of ionizing
radiation sources; construction, operation, and decommissioning of facilities;
management of radioactive waste; mining and processing of radioactive ores;
and such other activities as the Commission shall from time to time
determine;
Decommissioning means activities aimed at releasing from regulatory
control of nuclear installations or workplaces with an ionizing radiation source,
following the termination of their operation, for their utilization for other
purposes, or for the purpose of exempting them from the requirements of this
Act;
Emergency plan means a set of procedures to be implemented in the event
of an accident which describes the objectives, policy and concept of
operations for the response to an emergency and of the structure, authorities
and responsibilities for a systematic, coordinated and effective response;

b)

eg

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d) Emergency preparedness means the capability to take actions that will
effectively mitigate the consequences of an emergency for human health and
safety, quality of life, property, and the environment;

e) Emergency response means the performance of actions to mitigate the
consequences of an emergency for human health and safety, quality of life,
property, and the environment. It might also provide a basis for the
resumption of normal social and economic activities;

f) Facilities mean nuclear installations or radiation facilities in which people may
be exposed to ionizing radiation. These include:

i, uranium mining and raw material processing facilities such as uranium
mines;
ii, enrichment and fuel manufacturing plants;
iii, nuclear power plants;
iv, other reactors such as research reactors and critical assemblies;
V. spent fuel reprocessing plants;
vi. radioactive waste management facilities;
vii. radiation generator installations;
vili. irradiation installations;
ix. nuclear and radiation facilities for medical, industrial, research and
education purposes; and
x. such other facilities as the Commission shall determine from time to
time;

9) Individual operator means any individual who manipulates the controls of a
nuclear installation, radiation facility and radiation generating equipment:

h) Installation operator or Operator means any person, organization, or
government entity licensed or authorized to undertake the operation of a
nuclear or radiation facility or a radiation generating equipment;

i) lonizing radiation means electromagnetic or particulate radiation capable of
producing ion pairs directly or indirectly;

j) lonizing radiation sources means nuclear and other radioactive materials,
facilities and radiation generating equipment;

k) License means a legal document issued by the regulatory body granting
authorization to perform specified activities related to facilities or activities; or
any authorization granted by the regulatory body to the applicant to have the
responsibility for the siting, design, construction, commissioning, operation or
decommissioning of a nuclear installation;

|) Licensee means the authorized person who is a holder of a valid license
granted for a practice or source who has recognized rights and duties for the
practice or source, particularly in relation to protection and safety; or an
organization having overall responsibility for facilities or activities;

m) Natural sources means naturally occurring sources of radiation, such as the
sun and stars (sources of cosmic radiation) and rocks and soil (terrestrial
sources of radiation);

n) Non-ionizing radiation is radiation in the part of the electromagnetic
spectrum where there is insufficient energy to cause ionization. It includes
electric and magnetic fields, radio waves, microwaves, infrared, ultraviolet,
and visible radiation

0) Nuclear accident means any accident involving facilities or activities from
which a release of radioactive material occurs or is likely to occur and which

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has resulted or may result in an international transboundary release that could
be of radiological safety significance for another State;

p) Nuclear damage means loss of life, any personal injury or any loss, or
damage to, or loss of use of property, which arises out of or results from the
radioactive, toxic, explosive or other hazardous properties, or any combination
thereof, of nuclear fuel or radioactive products or any waste in, or of nuclear
materials coming from, originating in, or sent to, a nuclear installation or from
the ionizing radiation emitted by any other sources of radiation inside a
nuclear installation. Personal injury includes any physical or mental injury
(including death), sickness or disease whether caused directly by a physical
trauma or otherwise;

q) Nuclear incident means any occurrence or series of occurrences having the
same origin which causes nuclear damage or, but only with respect to
preventive measures, creates a grave and imminent threat of causing such
damage;

r) Nuclear installation means any of the following:

i, a nuclear reactor for research or production of nuclear materials for
industrial or medical use (including critical and sub-critical assemblies);

ii, a plant for preparing or storing fuel for use in a nuclear reactor as
described in paragraph (1);

iii, a nuclear waste storage or disposal facility with an activity that is
greater than the activity level prescribed by regulations made for the
purposes of this section;

iv. a facility for production of radioisotopes with an activity that is greater
than the activity level prescribed by regulations made for the purposes
of this section; and
any other facility that is prescribed for the development, production or
use of nuclear energy or the production, possession or use of a nuclear
substance, prescribed equipment or prescribed information;

s) Nuclear material means:

i nuclear fuel, other than natural uranium and depleted uranium, capable
‘of producing energy by a self-sustaining chain process of nuclear
fission outside a nuclear reactor, either alone or in combination with
‘some other materials; and

ii, Plutonium except that with isotopic concentration exceeding 80% in
plutonium-238; uranium-233; uranium enriched in the isotope 235 or
233; uranium containing the mixture of isotopes as occurring in nature
other than in the form of ore or ore residue; any material containing one
or more of the foregoing;

t) Nuclear or radiological emergency is a non-routine situation that
necessitates prompt action primarily to mitigate a hazard due to (a) The
energy resulting from a nuclear chain reaction or from the decay of the
products of a chain reaction; or (b) Radiation exposure or adverse
consequences for human health and safety, quality of life, property or the
environment,

u) Nuclear safety means the achievement of proper operating conditions, ,
prevention of accidents or mitigation of accident consequences resulting in
protection of workers, the public, and the environment from undue radiation
hazards;

<

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v) Physical protection means technical and organizational measures for
protection of nuclear material or authorized facilities designed to prevent
unauthorized access with nuclear installations, nuclear materials and other
radioactive materials;

w) Practices means activities that introduce additional sources of exposure or
exposure pathways or extends exposure to additional people or modifies the
network of exposure pathways from existing sources, so as to increase the
‘exposure or the likelihood of exposure of people or the number of people
exposed;

x) Radiation facility means a facility that utilizes radioactive materials; x-ray
facility; particle accelerator facility; and other such facility that the Commission
shall determine from time to time;

y) Radiation generating equipment or radiation generatormeans an
equipment or device that generates ionizing radiation when energized (e.9., x-
ray generating equipment) or that would, if assembled or repaired, be capable
of producing ionizing radiation when energized or an equipment as the
Commission shall from time to time determine;

z) Radiation protection means the protection of people and the environment
from the harmful effects of ionizing radiation;

aa)Radiation safety means measures intended to minimize the likelihood of
accidents involving radioactive sources and, should such an accident occur,
to mitigate its consequences;

bb)Radioactive material means any material designated in national law or by a
regulatory body as being subject to regulatory control because of its
radioactivity which includes sealed and unsealed sources and radioactive
waste;

cc) Radioactive source means a radioactive material permanently sealed in a
capsule or closely bonded and in a solid form and which is not exempt from
regulatory control. This also includes any radioactive material released if the
radioactive source is leaking or broken, but does not include material
encapsulated for disposal, or nuclear material within the nuclear fuel cycles of
research and power reactors;

dd) Radioactive waste means waste substances, objects or equipment for which
no further use is foreseen by their owner, with a radionuclide content or
surface radionuclide contamination exceeding values permitting their
discharge into the environment, these values shall be set out in an
implementing regulation;

ee)Radioactive waste disposal means a permanent emplacement of
radioactive waste into areas, facilities or installation without the intention of its
retrieval;

ff) Radioactive waste and spent fuel storage means the holding of radioactive
sources, spent fuel or of radioactive waste in a facility that provides for their/its
containment, with the intention of retrieval;

gg)Radiological accident means an event resulting in an inadmissible release
of radioactive substances or ionizing radiation, or an inadmissible exposure of
people;

hh)Registration means a form of authorization for practices of low or moderate
risks whereby the legal person responsible [i.e. responsible legal person] for
the practice has, as appropriate, prepared and submitted a safety assessment
of the facilities and equipment to the regulatory body. The practice or use is

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authorized with conditions or limitations as appropriate. The requirements for
safety assessment and the conditions or limitations applied to the practice
should be less severe than those for licensing. Typical practices that are
amenable to registration are those for which:
i, safety can largely be ensured by the design of the facilities and
equipment;
ii, the operating procedures are simple to follow;
il, the safety training requirements are minimal; and
iv, there is a history of few problems with safety in operations;
Safeguards means measures undertaken to ensure that the nuclear
material, non-nuclear material, services, equipment, facilities, information and
certain items are not used for the manufacture of nuclear weapons or any
other nuclear explosive devices or to further any military purpose;
Security means the prevention and detection of and response to, theft,
sabotage, unauthorized access, illegal transfer or other malicious acts
involving nuclear material, other radioactive substances or their associated
facilities;
kk) Special fissionable materials mean Plutonium-239, Uranium-233, Uranium
enriched in the isotopes 235 or 233 and materials containing one or more of
the foregoing in concentration or amount exceeding values established by the
Commission;
ll) Spent Nuclear Fuel means nuclear fuel that has been irradiated in and
permanently removed from a reactor core; and
mm) Technical services are services which may be availed of by licensees
and must be provided by a Technical Service Organization duly accredited by
the Philippine Accreditation Bureau for such scope of services. These
services include, but are not limited to, quality assurance and quality control,
commissioning and decommissioning, laboratory testing of any kind, etc.
nn)Technical Support Organization means the outside organization or experts
from outside the Commission's permanent staff from whom the Commission
may seek advice or recommendations in the conduct of its regulatory
responsibilities. This also includes testing laboratories or inspection bodies
duly accredited by the Philippine Accreditation Bureau which the Commission
may call on for technical services.

WD

ARTICLE I
THE PHILIPPINE NUCLEAR AND RADIATION
REGULATORY COMMISSION

SEC. 6. Creation of the Philippine Nuclear and Radiation Regulatory
Commission. - The Philippine Nuclear and Radiation Regulatory Commission
(PNRRC), hereinafter referred to as the Commission, is hereby created with the
authority over all aspects of safety, security, and safeguards involving civilian uses of
nuclear energy and ionizing radiation. The Commission shall be attached to the
Department of Health

SEC. 7. Organizational Structure of the Commission, and Qualifications of the
Commissioner and Associate Commissioners. -The Commission shall be under
a Commissioner who shall be appointed by the President for a fixed term of five (5)

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years with a rank equivalent to an Undersecretary, and two (2) Associate
Commissioners who shall be appointed by the President with a fixed term of four (4)
years and three (3) years, respectively. Thereafter, the successors shall be
appointed for five (5) years. No person shall be allowed to serve as Commissioner or
Associate Commissioner for more than two (2) terms.

The Commissioner shall have a university degree in the natural or applied sciences
‘or engineering with specialization in nuclear, ionizing or non-ionizing radiation. One
of the Associate Commissioners shall have qualifications similar to the
Commissioner, while the other Associate Commissioner shall be a member of the
Integrated Bar of the Philippines. The Commissioner and Associate Commissioners
may only be removed from service for just cause which includes misconduct,
demonstrated lack of competence, unlawful behavior, inability to perform assigned
duties, and the like but not for political considerations.

The Commission shall act as a collegial body for all regulatory matters. It shall draw
up its organizational structure to be submitted to the Secretary of Health for
approval.

SEC. 8. Functions of the Commission. — |n the performance of its functions under
this Act, the Commission is authorized to:

a) define and formulate policies, regulations, standards, associated criteria and
other issuances as a basis for its regulatory actions on nuclear and radiation
safety, security and safeguards;

b) establish system of authorization in the form of notification, registration, and
licensing, including review and assessment of submissions on safety and
security from the operators both prior to authorization and periodically during
and after operation as required;

c) carry out regulatory inspections to ensure compliance with regulations and
undertake the necessary enforcement action in the event of non-compliances;

d) ensure the applications of safety, security, and safeguards requirements
consistent with international and national obligations;

e) exercise quasi-judicial powers relative to its regulatory function;

f) issue licenses to qualified persons authorizing the conduct of activities for
which a license is required under this Act;

9) modify, amend, suspend, or revoke any license in accordance with the
provisions of this Act;

h) hold hearings and conduct investigations and for these purposes to administer
oaths and affirmations, and by subpoena to require any person to appear and
testify, or to appear and produce documents at any designated place;

i) establish advisory boards to advise with and make recommendations to the
Commission; and to fix and pay the amount of perdiem of members of such
advisory boards;

j) establish and issue regulations and orders for the safe and secure transport of
nuclear and other radioactive materials and radiation generating equipment;

k) establish and implement, in cooperation with other relevant authorities, a
system of control over the export and import of nuclear and other radioactive
materials, sources, equipment, information and technology, including dual use
items as determined to be necessary to protect the safety and security of the

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Philippines and to implement relevant international commitments of the
Philippines;

|) call upon other government agencies and instrumentalities for assistance and
cooperation in carrying out the provisions of this Act;

m) charge and collect reasonable fees in connection with its licensing and

regulatory functions, provided that such fees shall be imposed by regulation

on the basis of such published criteria as the Commission deems appropriate;

issue, amend and revoke such regulations and orders as may be necessary

or proper with respect to the furnishing of financial security to cover liability for

nuclear damage, the furnishing of certificates to carrier, and such other

regulations and orders as the Commission finds necessary or proper in

carrying out the purposes and provisions of this Act;

issue, amend and revoke such regulations and orders as may be necessary

‘or proper to carry out the purposes and provisions of this Act

ensure the establishment, implementation, and maintenance of a national

plan for preparedness and response to emergencies involving nuclear or

other radioactive materials;

establish appropriate mechanisms and procedures for informing the public,

press, media and other stake-holders about the regulatory process and the

safety and security aspects of regulated activities, including incidents,

accidents and abnormal occurrences;

') conduct such other relevant functions as may be necessary to attain the

objectives of this Act; and

Nothing in this Act shall preclude the authorized agents of the Department of

National Defense to make inspections of ionizing radiation sources or

activities jointly with the authorized representatives of the Commission after

prior consultation with the latter when the security of the state is involved

n)

0)

P)

q.

8)

SEC. 9, Regulatory Polic;

a) The primary responsibility for the safety of the use and security of ionizing
radiation sources lies with the operator.

b) In issuing authorizations and regulations under this Act, the Commission shall:

i. impose requirements consistent with the Commission's obligations

under this Act to protect the health and safety of the public and the

environment, and ensure the security of ionizing radiation sources,

prevent the spread of nuclear weapons and prevent nuclear or

radiological terrorism consistent with the obligations of the Philippines

under the Treaty on the Non-Proliferation of Nuclear Weapons (NPT)

and relevant international instruments,

establish and implement regulations consistent with international

standards and best practices; and

iv. ensure that operators are technically and financially qualified to engage
in the proposed activities in accordance with the requirements of this
Act and the Commission's regulations, and has financial protection to
fulfill obligations on liability for nuclear and radiation damage.

ii

SEC. 10. Financing and Resource Authority of the Commission. — The
Commission shall be authorized to:

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(1) charge and collect reasonable fees in the performance of its regulatory
functions, provided that such fees shall be imposed by regulation on
the basis of such published criteria as the Commission deems
appropriate; and

(2) use 100% of its income, donations, bequests, grants, and all sums
which may be appropriated for upgrading its physical and human
resources, for the conduct of its activities, and for augmentation of its
budget in case of shortfalls.

SEC. 11. Advisory Bodies. - The Commission may choose to establish advisory
bodies or seek expert opinion and recommendations from Technical Support
Organizations whose technical advice will not have conflict of interest or improper
influence on its regulatory decision making. Any advice offered shall not relieve the
Commission of its responsibilities under this law, other relevant laws and applicable
regulations of the State.

SEC. 12. Advisory Board on Safety and Security of Nuclear Installations and
Radiation Facilities and Materials. ~ The Commission shall establish an Advisory
Board on safety of facilities and materials not exceeding eleven in number and
appoint the members, to assist and advise the Commission on the safety and
security matters arising in connection with nuclear materials and installations and
radiation facilities and material licenses, and regulations applicable to such
authorizations, composed of experts outside the Commission from other government
agencies or the private sector or both: Provided, however, that the Commission shall
have the final decision and responsibility with respect to such matters. The opinions
and reports of the Board on authorization applications shall be made in writing and
shall be made available to the public. The composition and qualifications of the
Advisory Board shall be specified in the Implementing Rules and Regulations of this
Act.

ARTICLE Ill
REGULATION AND AUTHORIZATION OF NUCLEAR MATERIAL
AND INSTALLATION

SEC. 13. Activities Subject to Authorization. ~ It shall be unlawful for any person
to transfer, construct, receive, own, possess, operate, import or export any nuclear
material and installation except under an authorization issued by the Commission
under this Act

SEC. 14, Form and Content of Application. ~ Each application for authorization for
any nuclear material and installation shall be in writing and shall contain such
information as the Commission may by regulations or order deem to be necessary to
carry out its responsibilities under this Act. Such information shall include, but shall
not be limited to, information bearing on the technical and financial qualifications of
the applicant, the character of the applicant, and the citizenship of the applicant. In
addition, the applicant shall state such technical information as to the proposed
nuclear installation the amount, kind, and origin of nuclear fuel, the proposed location
and site of the installation ,the operational procedure and such other information as
the Commission may, by regulation, deem necessary in order to enable it to decide

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Hem

whether the operation of such installation will not pose undue risk to the health and
safety of the public and the environment

SEC. 15. Citizenship Requirement. — No authorization to acquire, own, or operate
any nuclear installation shall be issued to an alien, or any corporation or other entity
which is owned or controlled by an alien, a foreign corporation, or a foreign
government

For purposes of this Act, a corporation or entity is not owned or controlled by an
alien, a foreign corporation of a foreign government if at least sixty percent (60%) of
its capital stock is owned by Filipino citizens

SEC. 16. Provisional Authorization. — \n all cases of application for authorization to
construct a nuclear installation, if the Commission finds that, on the basis of the
technical information and data so far made available to it, there is reasonable
assurance that the proposed installation can be constructed and operated at the
proposed location without undue risk to the health, safety and security of the public
and the environment, it shall initially issue a provisional license to the applicant. Such
a provisional authorization may be granted even if the information on health, safety,
and security then available is less than would be needed for an authorization to
operate provided that the Commission is satisfied that there is reasonable assurance
that questions of health, safety, and security will be so resolved as to warrant the
issuance of an authorization to operate the installation.

SEC. 17. Additional Requirements in Case of Nuclear Installation for
Commercial Power; Exemptions. — Nothing in this Act shall be construed to
exempt the operator of a nuclear installation designed primarily for the generation of
electricity for commercial purposes, from complying with other requirements provided
by existing laws, such as securing a franchise, a certificate of public convenience
and necessity, obtaining approval for rates and services and others, from the
appropriate agency having jurisdiction: Provided, however, that upon certification by
the Commission, importations of nuclear fuel for use in these facilities shall be free
from all taxes and duties in accordance with incentives under the pertinent provisions
of the Board of Investment (BO!) Act.

SEC. 18. Individual Operators. - The Commission shall

a) Prescribe the classes of nuclear installations for which it determines that
individual operators’ authorization shall be required;

b) Determine the qualifications, reliability, and trustworthiness of such individual
operators;
c) Issue authorization to such individual operators in such form as the

Commission may prescribe; and
d) Suspend or revoke such authorization for violations of any provisions of this
Act or regulation or order issued by the Commission

SEC. 19. Prior and Preferential Rights of the Government over Special
Fissionable Material. — The Government of the Philippines, acting through the
Commission, shall have the right to acquire any special fissionable material owned
by a person in the Philippines. Such right may be exercised only when, in the view of

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the Commission, the development of nuclear energy in the Philippines or the national
interest so requires. The acquisition of special fissionable material pursuant to this
section shall be made for a fair and reasonable price

ARTICLE IV
REGULATION AND AUTHORIZATION OF RADIOACTIVE MATERIAL,
RADIATION FACILITY AND RADIATION GENERATING EQUIPMENT

SEC. 20. Activities Subject to Authorization. — \t shall be unlawful for any person
to manufacture, produce, receive, possess, own, use, transfer, transport, sell, import
or export any radioactive material, radiation facility, and radiation generating
equipment except under an authorization issued by the Commission or except as
otherwise authorized by the Commission under this Act.

SEC, 21. Exemption from the Authorization Requirements. - The Commission
may, by regulation, exempt a radioactive material, radiation facility and radiation
generating equipment from the authorization requirements of this Act if the
Commission finds that the exemption will not constitute an undue risk to the health
and safety of the public and the environment and to the security of the ionizing
radiation sources

SEC. 22. Form and Content of Application. — Each application for an authorization
for radioactive material, radiation facility and radiation generating equipment shall be
in writing and shall contain such information as the Commission may, by regulation
or order, deem to be necessary to carry its responsibilities under this Act. All
applications and statements shall be signed by the applicant or licensee.

ARTICLE V
COMMON PROVISIONS FOR REGULATION OF NUCLEAR MATERIAL,
AND OTHER RADIOACTIVE MATERIAL, FACILITIES AND RADIATION
GENERATING EQUIPMENT

SEC. 23. Form and Content of Authorization. —

a) Each authorization shall be in such form and shall contain such terms as the
Commission may prescribe to effectuate the provisions of this Act.

b) Every authorization issued under this Act shall be subject to the rights of
possession or control vested in the Commission under the provisions of this
Act and to all of the other provisions of this Act, now or hereafter in effect and
to all valid regulations and orders of the Commission.

SEC. 24. To Whom Authorization Issued. - The Commission shall issue an
authorization to any person upon finding that:

a) the proposed activities are consistent with the policies declared in Section
Two of this Act;

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wea

b) the proposed activities will not pose undue risk to the health and safety of the
public and the environment, and security of nuclear material, radiation
source, and facilities;

c) the applicant is technically and financially qualified to engage in the proposed
activities in accordance with the requirements of this Act and the
Commission's regulations, and has met all relevant requirements; and

d) the applicant, if required by this Act or the Commission's regulations, has
financial security to fulfil the obligations for liability for nuclear damage

SEC. 25. Authorization to Operate. - Upon the filing of any additional information
and data needed to enable the Commission to make a determination of the safety
aspects of the complete nuclear installations and facilities, and upon finding that the
installation authorized has been constructed and will operate in conformity with the
application as amended and in conformity with the provisions of this Act and of the
regulations of the Commission, and in the absence of any good cause being shown
to the Commission why the granting of an authorization would not be in accordance
with the provisions of this Act, the Commission shall thereupon issue an
authorization to the applicant to operate the facility.

SEC. 26. Period of Authorization. — Each authorization shall be issued for a
specified validity period, as determined by the Commission, depending on the type of
activities to be authorized and may be renewed upon the expiration of such period

SEC. 27. Transfer of Authorization. — No authorization issued by the Commission,
and no right granted by any such authorization, shall be transferred, assigned,
encumbered, or in any manner disposed of, either voluntarily, or involuntarily, directly
or indirectly, unless the Commission shall, after securing full information, find that
such transfer, assignment, encumbrance, or other disposition is in accordance with
the purposes and provisions of this Act and shall give its consent in writing

SEC. 28. Authorization Subject to Amendment. — The terms and conditions of all
authorization shall be subject to amendment or modification, by reason of
amendments of this Act or by reason of amendments of regulations or orders issued
by the Commission in accordance with this Act.

SEC. 29. Regulatory Enforcement Powers. — For the purpose of determining
whether the application may be granted or denied, or whether an authorization may
be modified, suspended, or revoked, and of otherwise implementing its licensing and
regulatory responsibilities under this Act, the Commission may at any time after the
filing of the original application and before the expiration of the authorization:

a) require additional written statements which shall, if the Commission so
decides, be made under oath or affirmation, and additional technical
information and data concerning activities under the application;

b) enter, through authorized representatives, at all reasonable times, the
premises where the nuclear and other radioactive material, facilities, and
radiation generating equipment are located or stored, and perform such
inspection as may be necessary; and

c) order the applicant or licensee, where situations or conditions endangering
life, health, property or environment are found to exist, to adopt such
measures as would eliminate or protect against such situations or conditions.

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SEC. 30. Modification, Suspension or Revocation of Authorization. - Any
authorization may be modified, suspended or revoked, in whole or in part, for any
material false statement contained in the application, or contained in any statement,
record or report required under this Act or for reasons or conditions revealed by such
application or statement of fact or any report, record, or inspection or other means
which would warrant the Commission to refuse to grant an authorization on an
original application, or for failure to construct or operate facilities in accordance with
the terms of the authorization, or for violation of, or failure to observe, any of the
terms and provisions of the Act or any rule, regulation or order of the Commission.

Except in cases of willful violation or those in which the public interest, health, safety,
or security requires otherwise, no authorization shall be modified, suspended or
revoked until the licensee shall have been accorded an opportunity to demonstrate
or achieve compliance with all lawful requirements.

SEC. 31. Protective Measures in Cases of Suspension, Revocation or
Expiration of Authorization. - Upon the suspension, revocation, or expiration of an
authorization which is not renewed, and pursuant to Commission order, the
Commission shall take, or shall require the licensee to take, such measures as may
be necessary to protect the health and safety of the public, and the environment from
the harmful effects of radiation, and ensure security of the ionizing radiation sources.
The Commission may, if necessary to protect the health and safety of the public and
the environment, and ensure security of ionizing radiation sources, take temporary
custody of any nuclear and other radioactive material, facilities, and radiation
generating equipment held by the licensee pending their appropriate and lawful
disposition by or for the licensee

SEC. 32. Continued Operation of Nuclear Installations and Radiation Facilities
in Case of Revoked Authorization. - Whenever the authorized government agency
finds that the public convenience and necessity of the country require continued
operation of a nuclear installation and radiation facility the authorization for which
has been revoked, the Commission may, after consultation with the appropriate
agency having jurisdiction and after determining that there could be no significant
risk to the health and safety of the public and the environment, and security of the
ionizing radiation sources, order that possession be taken of such nuclear installation
and radiation facility and materials and that it be operated for such period of time as
in the judgment of the Commission, the public convenience and necessity for the
nuclear energy development program of the Commission require, or until an
authorization for the operation of the nuclear installations and radiation facilities shall
become effective. Just compensation shall be paid for the use of the facility.

SEC. 33. Combining Applications: Oath or Affirmation. - The Commission may
consider in a single application one or more of the activities for which an
authorization is required by this Act and may combine in a single license
authorization for one or more of such activities. The Commission may require that
any application or statement be made under oath or affirmation.

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ARTICLE VI
RADIATION PROTECTION

SEC. 34, Fundamental Principles of Radiation Protection. ~ The Commission
shall adhere to the following fundamental principles of radiation protection

a) Justification: Activities or practices shall not be authorized unless it
produces sufficient benefit to the exposed persons or to society in a manner
that offsets the radiation harm that it may cause, taking into account social,
economic and other relevant factors;

Optimization: In relation to ionizing radiation exposure to workers and the
public caused by a nuclear installation or radiation facility, the magnitude of
individual doses, the number of persons exposed and the likelihood of
incurring exposures shall all be kept as low as reasonably achievable,
economic and social factors being taken into account; and

Dose Limitation: Activities and practices shall be conducted in a manner
that ensures that the total dose that an individual may experience does not
exceed the dose limit established by the Commission, so that no individual is
subject to an unacceptable risk attributable to radiation exposure.

b)

°)

SEC. 35. Responsibilities for Radiation Protection. —

a) The primary responsibility for the safety and security of nuclear material,
radiation source, and facilities to ensure protection of workers, the public, and
environment rests with the person(s) authorized to engage in activities
utilizing ionizing radiation.

Authorized persons shall ensure compliance with the requirements and dose
limits established by the Commission and shall ensure that radiation doses to
workers and the public, including doses from releases to the environment, are
as low as reasonably achievable, taking into account social and economic
factors.

b)

SEC. 36. Protection of Patients. — The person authorized to conduct activities
utilizing ionizing radiation for medical purposes shall ensure that no patient is
administered a diagnostic or therapeutic dose unless the dose is prescribed by a
medical practitioner who is assigned the primary task and obligations for ensuring
overall patient protection and safety in the prescription of, and during medical
exposures

SEC. 37. Exposure to Natural Sources. - The Commission shall promulgate
appropriate regulations and related guides to address exposure to ionizing radiation
from natural sources.

ARTICLE VII
EMERGENCY PREPAREDNESS AND RESPONSE

SEC. 38. Emergency Plan. —
a) No authorization or license to conduct an activity or practice, operate a facility

or possess or use a source may be granted unless and until an appropriate

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emergency preparedness and response plan has been developed by the
applicant and approved by the Commission.

b) The Commission shall establish, by regulation or conditions in an
authorization, a requirement that on-site and off-site emergency plans be
prepared and approved for any facility, activity, practice or source that could
give rise to a need for emergency intervention.

c) In the preparation of emergency plans the following shall be taken into
account, inter alia:

i, an assessment of the nature, likelinood and potential magnitude of
resulting damage, including the population and territory at risk from an
accident or incident; and

ii. the results of any accident analyses and any lessons learned from
experience and/or incidents and accidents that have occurred in
connection with similar activities or practices.

SEC. 39. Emergency Preparedness and Response. ~ The Commission shall:

a) coordinate the task of the radiological emergency response organization of
the Commission within the framework of the government agency responsible
in responding in case of a nuclear and radiological accident; and

b) provide for the activities of an emergency response center and for an
international exchange of information on the radiation situation, consistent
with the Philippines’ obligations under the Convention on Early Notification of
a Nuclear Accident and the Convention on Assistance in the Case of a
Nuclear Accident or Radiological Emergency.

ARTICLE Vill
TRANSPORT OF NUCLEAR AND OTHER RADIOACTIVE MATERIAL

SEC. 40. Regulation for Transport of Nuclear and Other Radioactive Material. ~
The Commission shall establish and implement safety and security requirements for
the transport of nuclear and other radioactive material to, from and within the
jurisdiction of the Philippines in coordination with relevant national government
agencies and consistent with the IAEA regulations for the safe and secure transport
of radioactive material.
SEC. 41. Requirements for Authorization to Transport Nuclear and Other
Radioactive Material. —
a) No person shall engage in the transport of nuclear and other radioactive
material without an authorization issued by the Commission;
b) Transport of nuclear and other radioactive material shall be in accordance
with the transport regulations established by the Commission; and
©) The person authorized to engage in the transport of nuclear and other
radioactive material shall have the primary responsibility for ensuring its
safety and security during transport

SEC. 42. Export/Import Control. - The Commission shall:

Page 17 of 28


a) nestablish regulatory requirements and relevant guide for the exportation and
importation of nuclear and other radioactive material and devices that produce
ionizing radiation which require licensees, inter alia’

i, to secure an authorization from the Commission prior to export or import
with the assurance of applying safeguards and physical protection
measures to protect public health, safety and security;

il. to ensure before import that the exporter has an authorization from the
Competent Authority of the exporting country to export such materials to
the Philippines in accordance with laws and regulations of that country;
and

il to ensure before export that the importing country has the appropriate
technical and administrative capability, resources and regulatory
infrastructure needed for the safe and secure management of the
requested radioactive material, particularly disused sources.

b) coordinate with relevant agencies of government and establish appropriate
formal mechanisms for coordination to effectively implement these
imporvexport control measures for nuclear and other radioactive material
including devices that produce ionizing radiation; and

©) transport radioactive sources through the territory of a transit or
transshipment State in a manner consistent with existing relevant international
standards relating to the transport of radioactive materials.

ARTICLE IX
RADIOACTIVE WASTE AND SPENT NUCLEAR FUEL

SEC. 43, General Policy. ~

a) Under the terms of this Act, the State guarantees safe management of spent
nuclear fuel and all radioactive waste in a manner that protects human health
and the environment, both now and in the future;

b) The state will identify or establish as necessary the organizations which will
have responsibility for the management and disposal of radioactive waste and
spent nuclear fuel;

c) No person shall operate a spent nuclear fuel or radioactive waste
management facility without an authorization issued by the Commission;

d) The generators of spent nuclear fuel and other radioactive waste, as well as
the operators of spent nuclear fuel and radioactive waste management
facilities, shall have the primary responsibility for the safe management of the
spent nuclear fuel and radioactive waste and related facilities. The generation
of radioactive waste shall be kept to the minimum practicable;

e) Any person who manages spent nuclear fuel and radioactive waste shall take
into consideration all its physical, chemical and biological properties that might
have a bearing on its safe management and ensure the security of the facility;

f) Any person owning and/or generating nuclear and other radioactive waste
shall bear all costs associated with its management, from its time of origin to
its disposal, including monitoring of the radioactive waste disposal facilities
after their closure, and including the necessary research and development

Page 18 of 28


activities. A contractual transfer of rights to manage radioactive waste or of its
ownership must be stipulated in writing;

Unless a generator or the Commission declares spent or irradiated fuel to be
radioactive waste, its management, apart from the requirements arising out of
other provisions of this Act, is subject to the same requirements as applicable
to radioactive waste. An owner of spent or irradiated fuel and other radioactive
waste shall manage it in such a way as not to encumber the potential for
subsequent processing or disposal and impose undue burdens on future
generations; and

The Commission shall take decisions ensuring management of nuclear or
radioactive waste if their owner or generator proceeds in contravention to this
Act and fails to remedy conditions that have arisen, Decisions shall take into
account the interests and concerns of all interested and affected people.

9)

h)

SEC. 44, Regulation of Spent Nuclear Fuel and Radioactive Waste. - The
Commission shall establish:

a) applicable safety and security requirements and regulations for the protection
of people and the environment from adverse impacts of spent nuclear fuel and
radioactive waste management activities in accordance with national
regulations and international safety standards and consistent with the
provisions in the Joint Convention on the Safety of Spent Fuel Management
and on the Safety of Radioactive Waste Management; and

regulations for ensuring that operators of nuclear facilities make adequate
financial arrangements for management of spent nuclear fuel and radioactive
waste.

b)

ARTICLE X
SAFEGUARDS, PHYSICAL PROTECTION AND SECURITY

SEC. 45. Safeguards. — The Commission shall:

a) maintain a State system of accounting for and control of nuclear materials and
establish requirements for accounting for and methods for control of nuclear
material;

fulfill the State's obligation to the Non-Proliferation Treaty, the Safeguards
Agreement, and related international treaties, conventions, agreements and
protocols thereto;

ensure unimpeded access by designated IAEA inspectors and duly authorized
representatives of the State's government agencies to any location or facility
provided for under the Safeguards Agreement and any protocols thereto, with
a view to conducting the verification activities authorized by these
instruments; and

ensure full cooperation and support to the IAEA by all national government
agencies and authorized persons (licensees) in the application of safeguards
measures.

b)

°)

qd)

SEC. 46. Physical Protection. - The Commission shall

Page 19 of 28


a) establish, implement and maintain a physical protection regime within the
State to ensure the protection of nuclear material in use and storage and
during transport and nuclear facilities against unauthorized removal of nuclear
material and against sabotage;

fulfil the State's obligation as a party to the Convention on Physical Protection
of Nuclear Material; and

ensure that the prime responsibility for the implementation of physical
protection of nuclear material or of nuclear facilities rests with the license
holders (e.g. operators or shippers)

b)

°)

SEC. 47. Security of Certain Categories of lonizing Radiation Sources ~ The
Commission shall establish and maintain appropriate regulations and regulatory
guides for the security of certain categoriesof ionizing radiation sources including
during transport of nuclear and radioactive materials in coordination with the relevant
intelligence and security governmental agencies.

ARTICLE XI
CIVIL LIABILITY FOR NUCLEAR AND RADIATION DAMAGE

SEC. 48, The Operator Liability. —

a) The installation operator shall be liable for nuclear damage upon proof that
such damage has been caused by a nuclear accident:

i. in his nuclear installation; or

ii. involving nuclear material coming from or originating in his nuclear

installation, and occurring: before liability with regard to nuclear
incidents involving the nuclear material has been assumed, pursuant to
the express terms of a contract in writing, by another installation
operator, or in the absence of such express terms, before another
installation operator has taken charge of the nuclear material; or
involving nuclear material sent to his nuclear installation, and occurring:
after liability with regard to nuclear incidents involving the nuclear
material has been assumed by him, pursuant to the express terms of a
contract in writing, from another installation operator; or in the absence
of such express terms, after he has taken charge of the nuclear
material: Provided, that if nuclear damage is caused by a nuclear
incident occurring in a nuclear installation and involving nuclear
material stored therein incidentally to the carriage of such material, the
provisions of paragraph (a) of this Section shall not apply where
another installation operator or person is solely liable pursuant to the
provisions of paragraph (b) or (c) of this Section.

b) Any provision in this Section to the contrary notwithstanding, the installation
operator shall be liable for nuclear damage upon proof that such damage has
been caused by a nuclear accident involving nuclear material in the course of
carriage:

i. to his nuclear installation from a nuclear installation located outside the
Republic of the Philippines; or

ji, from his nuclear installation to a nuclear installation located outside the
Republic of the Philippines

Page 20 of 28


SEC. 49. Absolute and Exclusive Liability. -

a) The liability of the installation operator for nuclear damage shall be absolute.

b) The installation operator shall not be liable for nuclear damage caused by a
nuclear incident directly due to a grave natural disaster of an exceptional
character.

c) Except as otherwise provided in Article Eleven of this Act, no person other
than the installation operator shall be liable for nuclear damage.

SEC, 50, Recourse Actions. — The installation operator shall have a right of
recourse only:

a) if there is such a right pursuant to the express provision of a written contract
with the other installation operator; or

b) if the nuclear incident results from an act or omission done with intent to
cause damage, against the individual who has acted or omitted to act with
such intent.

SEC. 51. Gross Negligence or Intentional Act of Claimant. - If the nuclear
damage resulted wholly or partly either from the gross negligence of the person
suffering the damage or from an act or omission of such person done with intent to
cause damage, the Court may relieve the installation operator from his obligation to
pay compensation in respect of the damage suffered by such person.

SEC. 52. Exceptions to Liability. — No installation operator shall be liable for any
nuclear damage caused by a nuclear accident directly due to an act of armed
conflict, hostilities, civil war or insurrection

SEC. 53. Limit of Liability. — The liability of the installation operator for nuclear
damage under this Act shall be limited to an amount in Philippine pesos which is
equivalent to three hundred million dollars ($300,000,000.00), United States
currency, for any one nuclear incident, exclusive of an interest or costs which may be
awarded by the Court in actions for compensation of such nuclear damage. The
amount may be subject to change, as determined by the Commission, in accordance
with international conventions ratified by the Philippines

SEC. 54. Property for Which Installation Operator Not Liable. — The installation
operator shall not be liable under this Act for nuclear damage:
@) to the nuclear installation itself or to any property on the site of that installation
which is used or to be used in connection with that installation; or
») to the means of transport upon which the nuclear material involved was
located at the time of the nuclear incident.

SEC. 55. Liabilities not Affected by this Act. ~ Nothing in this Act shall affect:
a) the liability of any individual for nuclear damage for which the installation
operator, by virtue of Sections fifty two (52) or fifty four (54) of this Act, is

not liable under this Act and which that individual caused by an act or
omission done with intent to cause damage; or

Page 21 of 28



) the liability outside this Act of the installation operator for nuclear damage for
which, by virtue of sub-paragraph (b) of Section fifty fourof this Act, he is not
liable under the provisions of this Act.

SEC. 56. Exclusions. - The Commission may, if it determines that the small extent
of the risk involved so warrants, exclude by regulation any small quantities of nuclear
material from the application of the provisions in this Article XI. Provided, that (a)
maximum limits for the exclusion of such quantities have been established by the
Board of Governors of the Intemational Atomic Energy Agency; and (b) any
exclusion must be within the limits so established.

SEC. 57. Requirement of Financial Security. - No authorization to operate a
nuclear installation shall be issued unless the installation operator secures and
maintains insurance or other financial security covering his liability for nuclear
damage under this Act. The Commission shall by regulation, prescribe, the type and
terms of financial security herein required, which may include private insurance,
private contractual indemnity, self-insurance or other proof of financial ability to pay
damages under this Act or a combination of any thereof: Provided, that, in fixing the
type and terms of such financial protection, the Commission shall be guided by the
objectives of assuring to potential victims of a nuclear incident adequate and
effective compensation without imposing unreasonable burden on the installation
operator.

SEC. 58. Certificate to Carrier. — In accordance with such regulations as the
Commission may issue, the appropriate installation operator shall provide the cartier,
which furnishes carriage of nuclear material, with a certificate issued by or on behalf
of the insurer or other financial guarantor furnishing the financial security under
Section 57. The certificate shall be in such form and contain such information as may
be prescribed by the Commission's regulations, including the name and address of
the appropriate installation operator, the amount, type and duration of the security
and a statement that such information may not be disputed by the person for whom
or on whose behalf the certificate was issued. The certificate shall indicate the
nuclear material in respect to which the security applies and shall include also a
verification by the Commission that the person designated is an appropriate
installation operator within the meaning of the provisions of this Article.

SEC. 59. When Non-nuclear Damage Deemed Nuclear Damage. — Whenever
both nuclear damage and damage other than nuclear damage have been caused by
a nuclear incident or jointly by a nuclear incident and one or more other occurrences,
such other damage shall, to the extent that it is not reasonably separable from the
nuclear damage be deemed, for purposes of this Part, to be nuclear damage caused
by that nuclear incident. Where, however, damage is caused jointly by nuclear
incident covered by this Article and by an emission of ionizing radiation not covered
by it, nothing in this Article shall limit or otherwise affect the liability, either as regards
any persons suffering nuclear damage or by way of recourse or contribution, of any
person who may be held liable in connection with that emission of ionizing radiation

SEC. 60. Liability of Installation Operators. —

Page 22 of 28


a) Several Installation Operators Liable. ~ Where nuclear damage engages
the liability of more than one installation operator, the following rules shall
apply:

i, In so far as damages attributable to each installation operator are
not reasonably separable, the installation operators involved shall
be jointly and severally liable;

i, In case the nuclear incident occurs in the course of carriage of
nuclear material, either in one and the same means of transport, or,
in the case of storage incidental to the carriage, in one and the
same nuclear installation and causes nuclear damage which
engages the liability of more than one installation operator, the total
liability shall not exceed the highest amount applicable with respect
to any one of them pursuant to Section fifty three (53) of this Act;
and

ili, In neither of the cases referred to in subparagraphs (a) and (b) of
this Section shall the liability of any one installation operator exceed
the amount established in Section fifty three (53) hereof.

b) Operator of Several Installations, - Subject to the provisions of Section
sixty (60)(a), where several nuclear installations of one and the same
installation operator are involved in one nuclear incident, such installation
operator shall be liable in respect of each nuclear installation involved up to
the amount applicable with respect to him pursuant to Section fifty three (53).
Several Installations on Same Site. - The Commission may determine that
several nuclear installations of one installation operator which are located at
the same site shall be considered as a single nuclear installation.

cs

SEC. 61. Carrier or Handler of Nuclear Material as Installation Operator. — The
Commission, subject to such terms and conditions as it may by regulation or order
prescribe, designate a carrier of nuclear material or a person handling radioactive
waste, at his request and with the consent of the installation operator concerned, as
installation operator in the place of that installation operator in respect of such
nuclear material or radioactive waste respectively. Upon such designation, such
carrier or such person shall be considered as an installation operator for the purpose
of this Article.

SEC. 62. Government Indemnity. - The Government, through the Commission,
shall indemnify the installation operator liable and shall provide the necessary funds
for the payment of claims for compensation for nuclear damages which have been
established against the operator to the extent that the yield of insurance or other
financial security is inadequate to satisfy such claims: Provided, That the obligation
of the Government under this Section, together with the yield of insurance or other
financial security, shall not in the aggregate exceed the maximum amount
established in Section fifty three (53) for any nuclear incident.

The Republic of the Philippines acting through such officer as may be designated by
the President shall enter into agreements of indemnification with contractors or
suppliers of goods or services for an nuclear installations and radiation facilities
‘owned or operated by the Government, its agencies, instrumentalities or

Page 23 of 28


Boe

corporations owned or controlled by the government pursuant to which the
government agrees to indemnify and hold such contractors or suppliers harmless
from any loss or liability arising out of or in relation to a nuclear incident occurring in
the Philippines in excess of the yield of the insurance or other security herein set
forth, Provided, however, that such indemnity shall in no case exceed the amount of
Philippine pesos which is equivalent to three hundred million ($300,000,000.00) U.S.
dollars,

SEC. 63. When Claims Exceed Maximum Limit. —

a) Upon petition of the installation operator liable or of the Commission, and
upon a showing that the nuclear damages from a nuclear incident will
probably exceed the limit of liability established in Section fifty three (53)
hereof, the Court having jurisdiction shall issue such orders as may be
necessary to assure the equitable distribution of compensation, including
orders apportioning the payments to be made to claimants, orders permitting
partial payments to be made before final determination of the total claims, and
orders setting aside part of the funds available for possible latent injuries not
discovered until a later time; and

In any case where it appears that the nuclear damage caused by a nuclear
incident exceeds or will probably exceed the limit of liability established in
Section fifty three (53) hereof, the Commission shall furnish a report thereon
to the Congress with its recommendations, including what damages cannot be
adequately compensated under existing arrangements,

b)

SEC. 64, Court Having Jurisdiction. ~ The Regional Trial Court having jurisdiction
over the place where the nuclear incident occurs shall determine claims for
compensation for such nuclear damage under this Act

SEC. 65. Intervention of Commission in Court Proceedings. - When, after the
occurrence of a nuclear incident, it appears that the Government will have to pay
indemnity pursuant to the provisions of Section sixty two (62) hereof, the Court
having jurisdiction over the claims for compensation arising from the nuclear incident
shall allow the Commission, upon its petition, to intervene in the proceedings with
respect to technical issues, at any time before final judgment

SEC. 66, Compulsory Examination. — After the occurrence of a nuclear incident
for which it appears compensation may be payable under this Act, the Commission
may adopt such measures as may be appropriate to determine the persons who
were or might have been exposed to ionizing radiation resulting from such nuclear
incident, which measures may include a summons to such persons to submit
themselves to examination before such authority or body as shall be designated by
the Commission within three months from the date of summons. In determining the
amount of damages or the right to recover damages, the Court may, in its discretion,
take into account the inexcusable failure of the claimant to fulfil or comply with the
foregoing obligation

SEC. 67. Investigation of Nuclear Incidents. - The Commission shall make an
investigation of the cause and extent of any nuclear incident for which it appears

Page 24 of 28

o


re

compensation may be payable under this Act and its finding shall be made available
to the public, to the parties involved and to the Courts

SEC. 68. Cancellation or Suspension of Financial Protection. - \t shall be
unlawful for any insurer or other financial guarantor to suspend or cancel the
insurance or other financial security provided pursuant to the provisions of this Act
without giving such prior notice in writing as may be required by the Commission's
regulations,

SEC. 69. Against Whom Action for Compensation Brought. — Persons entitled to
compensation for nuclear damage under this Act may, at their option, bring the
action for recovery of such compensation against the installation operator llable or
against the insurer or other persons furnishing financial security as required by this
Act

SEC. 70. Prescription of Rights and Actions. — Rights of compensation under
this Act shall prescribe after ten years from the date of the nuclear incident
Furthermore, actions for compensation under this Act shall be barred unless brought
within three years from the date on which the person suffering nuclear damage had
knowledge or should have had knowledge of the damage and of the installation
operator liable for the damage: Provided, however, that any person who claims to
have suffered nuclear damage and who has brought an action for compensation
within the period applicable pursuant to this Section may amend his claim to take
into account any aggravation of the damage, even after the expiry of that period:
Provided, further, that final judgment has not been entered in the case

SEC. 71. Prescription with Respect to Nuclear Materials Lost, Stolen, etc—
Where nuclear damage is caused by a nuclear incident involving nuclear material
which at the time of the nuclear incident was stolen, lost, jettisoned or abandoned,
the period established pursuant to Section seventy (70) of this Act shall be
computed from the date of that nuclear incident, but the period shall in no case
exceed a period of twenty years from the date of the theft, loss, jettison or
abandonment.

ARTICLE Xil
ADMINISTRATIVE PROCEDURE AND JUDICIAL REVIEW

SEC. 72. Notice and Hearing. —

a) In any proceeding under this Act for the granting, suspending, revoking or
amending of any authorization, including an application to transfer control of
an authorization, or upon the issuance of an order under Sections nineteen
(19), twenty nine (29), thirty one (31), or thirty two (32), the Commission shall
hold a hearing upon the request of any person whose interest may be affected
and shall admit such person as a party to the proceeding.

Commission hearings may be open to the public and relevant stakeholders,
except where warranted by considerations of security, national defense or
proprietary matters.

Except in cases where immediate action is required in order to protect the
health and safety of the public or the national interest, no order issued under

b)

°)

Page 25 of 28


©) Except in cases where immediate action is required in order to protect the
health and safety of the public or the national interest, no order issued under
Sections nineteen (19), twenty nine (29), thirty one (31), or thirty two (32) shall
become effective until after the licensee has had notice for a hearing and
opportunity to be heard.

4) Where an order suspending, revoking or modifying an authorization, or an
order issued under Sections nineteen (19), twenty nine (29), thirty one (31), or
thirty two (32) is made effective without prior notice for a hearing and
opportunity to be heard , the order shall only be temporary pending the
hearing and issuance of the Commission's final decision in the proceeding.

SEC. 73. Notice of Regulation. - No regulation adopted by the Commission shall
be effective less than fifteen days after publication of the regulation in the Official
Gazette, except, that if the Commission finds that the health, safety, and security or
the national interest requires, the regulation may be made effective immediately
upon publication in the Official Gazette or upon furnishing copies of the regulation to
the persons affected,

SEC. 74, Incident Reports. ~ No report by any licensee of any incident arising out
of or in connection with authorized activities made pursuant to any requirement of
the Commission shall be admitted as evidence in any suit or action for damages
growing out of any matter mentioned in such report.

SEC. 75. Hearing Procedure. — All hearings and investigations before the
Commission shall be governed by rules adopted by the Commission: Provided, that
in the conduct thereof, the Commission shall not be bound by the technical rules of
evidence, except that the Commission shall as a matter of policy provide for the
exclusion of irrelevant, immaterial or duly repetitious evidence.

SEC. 76. Orders and Decisions. - All orders and decisions of the Commission
taken in any proceeding after hearing shall be in writing, stating clearly and distinctly
the facts and issues involved and the reasons on which the Commission's order or
decision is based, and shall be made available to the public.

SEC. 77. Judicial Review. - The Court of Appeals is hereby given the power of
judicial review over any final order or decision of the Commission rendered under
Section fifty two (52) and shall modify or set aside such order or decision when it
clearly appears that there was no evidence before the Commission to support
reasonably such order or decision, or that the same is contrary to law. Any such final
decision or order may be reviewed by the Court of Appeals on the application of any
party or other person affected thereby, by certiorari in appropriate cases, or by
petition for review, in accordance with the Rules of Court, within such period as the
Commission may rule or prescribe but not exceeding thirty days from notice of such
order or decision. An appeal shall not suspend the grant of authorization, but shall
maintain the suspension or revocation of authorization until after the final disposition
of the appeal by the Court of Appeals, unless said Court determines otherwise. On
questions of law only such order or decision may be reviewed by the Supreme Court.

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ARTICLE XiIll
TRANSITIONAL PROVISIONS.

SEC. 78. The Philippine Nuclear Research Institute. —

a) The regulatory functions of the of the PNRI are hereby transferred to the
Commission.

The development, promotion and use of nuclear energy and ionizing radiation
for peaceful applications shall remain the responsibility of the PNRI,
whereupon the Director of the PNRI shall draw up its new organizational
structure to be submitted to the President through the DOST Secretary for
approval.

Previous regulatory issuances — all regulations, rules, orders previously
established by the PNRI shall remain in force until superseded by regulatory
issuances of the Commission.

b)

°)

SEC. 79. The Center for Device Regulation, Radiation Health and Research. —

a

The regulatory functions of the CDRRHR of the Department of Health, over
devices generating ionizing radiation by virtue of R. A. 9711 are deemed
transferred to the Commission

The CDRRHR shall remain with the Food and Drug Administration

Previous regulatory issuances — all regulations, rules, orders pertaining to
ionizing and non-ionizing radiation previously established by the CDRRHR
shall remain in force until superseded by regulations issued by the
Commission.

2E

SEC. 80. Human Resources. ~ All plantilla positions of the Nuclear Regulatory
Division of the PNRI, DOST are hereby transferred to the Commission. All plantilla
positions of the Radiation Regulation Division of the CDRRHR of the DOH which
have responsibilities solely in ionizing and non-ionizing radiation regulation and
laboratory are also hereby transferred to the Commission. Thereafter, all powers,
functions and duties, records, files, and assets pertaining to regulation of ionizing
radiation, of these organizational units shall be transferred to the Commission.

There shall be no diminution of rank, salaries, allowances and benefits of all
personnel transferred to the Commission. In case of a difference in the above
benefits between the transferred employees of the two agencies, the higher amount
shall be adopted. New employees of the Commission shall be entitled to the same
allowances and benefits as the transferred employees

ARTICLE XIV
FINAL PROVISIONS

SEC. 81. Penal Provisions. - Any person who willfully violates, attempts to
violate, or conspires to violate, any provision of Sections thirteen (13) or twenty (20)
of this ‘Act shall upon conviction thereof, suffer the penalty of imprisonment of not
more than five years or a fine of not more than one million pesos (PHP
4,000,000.00) or both

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ce

Any person who shall willfully violate, attempt to violate, or conspire to violate any
provisions of this Act for which no penalty is specifically provided or of any
regulation, order or authorization issued under this Act shall, upon conviction thereof,
suffer the penalty of imprisonment of not more than two years or a fine of not more
than five hundred thousand pesos (PHP 500,000.00) or both

SEC. 82. Appropriations. - The amount necessary to support the initial operation of
the Commission shall be sourced from the existing budgetary appropriations of the
Nuclear Regulatory Division (NRD) of the PNRI and the licensing and regulatory
group of the CDRRHR. Thereafter, the funds shall be provided for in the General
Appropriations Act

SEC. 83. Implementing Rules & Regulations. - The DOH and DOST, in
consultation and coordination with appropriate government agencies shall
promulgate the implementing rules and regulations within sixty (60) days from the
effectivity of this Act

SEC. 84. Separability Clause. - If any provision or part of a provision of this Act or
the application of such provision to any person or circumstance is held invalid, the
remainder of the provisions of this Act or the application of such provision to other
persons or circumstances shall not be affected thereby.

SEC, 85. Repealing Clause. — Relevant provisions of R.A. No. 2067 as amended,
R.A, No. 5207 as amended, E. O. No. 128, R. A. No. 9711 and administrative rules
or regulations contrary to, or inconsistent with the provisions of this Act are hereby
repealed, modified or amended accordingly.

SEC. 86. Effectivity Clause. - This Act shall take effect within fifteen (15) days
following its publication in two (2) newspapers of national circulation.

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