(1) by striking ‘‘the maximum amount of finan-
cial protection required under subsection b. or’’; and
(2) by striking ‘‘paragraph (3) of subsection d.,
whichever amount is more’’ and inserting ‘‘paragraph
(2) of subsection d.’’.
SEC. 5. INCIDENTS OUTSIDE THE UNITED STATES.
(a) AMOUNT OF INDEMNIFICATION.—Section 170 d.(5)
of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)(5))
is amended by striking ‘‘$100,000,000’’ and inserting
‘‘$500,000,000’’.
(b) LIABILITY LIMIT.—Section 170 e.(4) of the Atomic
Energy Act of 1954 (42 U.S.C. 2210(e)(4)) is amended by
striking ‘‘$100,000,000’’ and inserting ‘‘$500,000,000’’.
SEC. 6. REPORTS.
Section 170 p. of the Atomic Energy Act of 1954 (42
U.S.C. 2210(p)) is amended by striking ‘‘August 1, 1998’’
and inserting ‘‘August 1, 2013’’.
SEC. 7. INFLATION ADJUSTMENT.
Section 170 t. of the Atomic Energy Act of 1954 (42
U.S.C. 2210(t)) is amended—
(1) by redesignating paragraph (2) as para-
graph (3); and
(2) by adding after paragraph (1) the following:
‘‘(2) ADJUSTMENT.—The Secretary shall adjust the
amount of indemnification provided under an agreement
of indemnification under subsection d. not less than once
during each 5-year period following July 1, 2001, in ac-
cordance with the aggregate percentage change in the Con-
sumer Price Index since—
‘‘(A) that date, in the case of the first adjustment
under this paragraph; or
‘‘(B) the previous adjustment under this para-
graph.’’.
SEC. 8. PRICE-ANDERSON TREATMENT OF MODULAR REAC-
TORS.
Section 170 b. of the Atomic Energy Act of 1954 (42
U.S.C. 2210(b)) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(5)(A) For purposes of this section only, the Commis-
sion shall consider a combination of facilities described in
subparagraph (B) to be a single facility having a rated ca-
pacity of 100,000 electrical kilowatts or more.
‘‘(B) A combination of facilities referred to in subpara-
graph (A) is 2 or more facilities located at a single site,
each of which has a rated capacity of 100,000 electrical kilo-
watts or more but not more than 300,000 electrical kilo-
watts, with a combined rated capacity of not more than
1,300,000 electrical kilowatts.’’.
SEC. 9. APPLICABILITY.
The amendments made by sections 3, 4, and 5 do not
apply to a nuclear incident that occurs before the date of
enactment of this Act.
SEC. 10. PROHIBITION ON ASSUMPTION BY UNITED STATES
GOVERNMENT OF LIABILITY FOR CERTAIN
FOREIGN ACCIDENTS.
Section 170 of the Atomic Energy Act of 1954 (42
U.S.C. 2210) is amended by adding at the end the following
new subsection:
‘‘u. PROHIBITION ON ASSUMPTION OF LIABILITY FOR
CERTAIN FOREIGN ACCIDENTS.—Notwithstanding this sec-
tion or any other provision of law, no officer of the United
States or of any department, agency, or instrumentality of
the United States Government may enter into any contract
or other arrangement, or into any amendment or modifica-
tion of a contract or other arrangement, the purpose or ef-
fect of which would be to directly or indirectly impose li-
ability on the United States Government, or any depart-
ment, agency, or instrumentality of the United States Gov-
ernment, or to otherwise directly or indirectly require an
indemnity by the United States Government, for nuclear
accidents occurring in any country whose government has
been identified by the Secretary of State as engaged in state
sponsorship of terrorist activities (specifically including
any country the government of which, as of September 11,
2001, had been determined by the Secretary of State under
section 620A(a) of the Foreign Assistance Act of 1961, sec-
tion 6(j)(1) of the Export Administration Act of 1979, or
section 40(d) of the Arms Export Control Act to have re-
peatedly provided support for acts of international ter-
rorism).’’.
SEC. 11. TRANSPORTATION OF NUCLEAR MATERIALS.
(a) AMENDMENT.—Chapter 14 of the Atomic Energy
Act of 1954 (42 U.S.C. 2201–2210b) is amended by adding
at the end the following new section:
‘‘SEC. 170C. TRANSPORTATION OF NUCLEAR MATE-
RIALS.—
‘‘a. The Nuclear Regulatory Commission shall establish
a system to ensure that—
‘‘(1) with respect to activities by any party pur-
suant to a license issued under this Act, each vehicle
transporting materials described in subsection b. in
the United States—
‘‘(A) from a facility licensed by the Nuclear
Regulatory Commission;
‘‘(B) from a facility licensed by an agree-
ment State; or
‘‘(C) from a country with whom the United
States has an agreement for cooperation under
section 123,
carries a manifest describing the type and amount of
materials being transported;
‘‘(2) each individual driving or traveling with
such a vehicle has been subject to a security back-
ground check by appropriate Federal entities; and
‘‘(3) no such vehicle transports such materials to
a destination other than a facility licensed by the Nu-
clear Regulatory Commission or an agreement State
under this Act or other appropriate Federal facility,
or to a destination outside the United States in a
country with whom the United States has an agree-
ment for cooperation under section 123.
‘‘b. Except as otherwise provided by the Commission
by regulation, the materials referred to in subsection a.(1)
are byproduct materials, source materials, special nuclear
materials, high-level radioactive waste, spent nuclear fuel,
transuranic waste, and low-level radioactive waste (as de-
fined in section 2(16) of the Nuclear Waste Policy Act of
1982 (42 U.S.C. 10101(16))).’’.
(b) REGULATIONS.—Not later than 1 year after the
date of the enactment of this Act, and from time to time
thereafter as it considers necessary, the Nuclear Regulatory
Commission shall issue regulations identifying radioactive
materials that, consistent with the protection of public
health and safety and the common defense and security, are
appropriate exceptions to the transportation requirements
of section 170C of the Atomic Energy Act of 1954, as added
by subsection (a) of this section.
(c) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect upon the issuance of regulations
under subsection (b).
(d) TABLE OF SECTIONS AMENDMENT.—The table of
sections for chapter 14 of the Atomic Energy Act of 1954
is amended by adding at the end the following new item:
‘‘Sec. 170C. Transportation of nuclear materials.’’.
SEC. 12. NUCLEAR FACILITY THREATS.
(a) STUDY.—The President, in consultation with the
Nuclear Regulatory Commission and other appropriate
Federal, State, and local agencies and private entities, shall
conduct a study to identify the types of threats that pose
an appreciable risk to the security of the various classes
of facilities licensed by the Nuclear Regulatory Commission
under the Atomic Energy Act of 1954. Such study shall take
into account, but not be limited to—
(1) the events of September 11, 2001;
(2) an assessment of physical, cyber, biochemical,
and other terrorist threats;
(3) the potential for attack on facilities by mul-
tiple coordinated teams of a large number of individ-
uals;
(4) the potential for assistance in an attack from
several persons employed at the facility;
(5) the potential for suicide attacks;
(6) the potential for water-based and air-based
threats;
(7) the potential use of explosive devices of con-
siderable size and other modern weaponry;
(8) the potential for attacks by persons with a
sophisticated knowledge of facility operations;
(9) the potential for fires, especially fires of long
duration; and
(10) the potential for attacks on spent fuel ship-
ments by multiple coordinated teams of a large num-
ber of individuals.
(b) SUMMARY
AND CLASSIFICATION REPORT.—Not
later than 180 days after the date of the enactment of this
Act, the President, shall transmit to the Congress and the
Nuclear Regulatory Commission a report—
(1) summarizing the types of threats identified
under subsection (a); and
(2) classifying each type of threat identified
under subsection (a), in accordance with existing laws
and regulations, as either—
(A) involving attacks and destructive acts,
including sabotage, directed against the facility
by an enemy of the United States, whether a for-
eign government or other person, or otherwise
falling under the responsibilities of the Federal
Government; or
(B) involving the type of risks that Nuclear
Regulatory Commission licensees should be re-
sponsible for guarding against.
(c) FEDERAL ACTION REPORT.—Not later than 90
days after the date on which a report is transmitted under
subsection (b), the President, shall transmit to the Congress
a report on actions taken, or to be taken, to address the
types of threats identified under subsection (b)(2)(A). Such
report may include a classified annex as appropriate.
(d) REGULATIONS.—Not later than 270 days after the
date on which a report is transmitted under subsection (b),
the Nuclear Regulatory Commission shall issue regulations,
including changes to the design basis threat, to ensure that
licensees address the threats identified under subsection
(b)(2)(B).
(e) PHYSICAL SECURITY PROGRAM.—The Nuclear
Regulatory Commission shall establish an operational safe-
guards response evaluation program that ensures that the
physical protection capability and operational safeguards
response for sensitive nuclear facilities, as determined by
the Commission consistent with the protection of public
health and the common defense and security, shall be tested
periodically through Commission approved or designed, ob-
served, and evaluated force-on-force exercises to determine
whether the ability to defeat the design basis threat is being
maintained. For purposes of this subsection, the term ‘‘sen-
sitive nuclear facilities’’ includes at a minimum commer-
cial nuclear power plants, including associated spent fuel
storage facilities, spent fuel storage pools and dry cask stor-
age at closed reactors, independent spent fuel storage facili-
ties and geologic repository operations areas, category I fuel
cycle facilities, and gaseous diffusion plants.
(f) CONTROL OF INFORMATION.—In carrying out this
section, the President and the Nuclear Regulatory Commis-
sion shall control the dissemination of restricted data, safe-
guards information, and other classified national security
information in a manner so as to ensure the common de-
fense and security, consistent with chapter 12 of the Atomic
Energy Act of 1954.
SEC. 13. INDUSTRIAL SAFETY RULES FOR DEPARTMENT OF
ENERGY NUCLEAR FACILITIES.
Section 170 d. of the Atomic Energy Act of 1954 (42
U.S.C. 2210(d)) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(8)(A) It shall be a condition of any agreement of
indemnification entered into under this subsection that the
indemnified party comply with regulations issued under
this paragraph.
‘‘(B) Not later than 180 days after the date of the en-
actment of this paragraph, the Secretary shall issue indus-
trial health and safety regulations that shall apply to all
Department of Energy contractors and subcontractors who
are covered under agreements entered into under this sub-
section for operations at Department of Energy nuclear fa-
cilities. Such regulations shall provide a level of protection
of worker health and safety that is substantially equivalent
to or identical to that provided by the industrial and con-
struction safety regulations of the Occupational Safety and
Health Administration (29 CFR 1910 and 1926), and shall
establish civil penalties for violation thereof that are sub-
stantially equivalent to or identical to the civil penalties
applicable to violations of the industrial and construction
safety regulations of the Occupational Safety and Health
Administration. The Secretary shall amend regulations
under this subparagraph as necessary.
‘‘(C) Not later than 240 days after the date of the en-
actment of this paragraph, all agreements described in sub-
paragraph (B), and all contracts and subcontracts for the
indemnified contractors and subcontractors, shall be modi-
fied to incorporate the requirements of the regulations
issued under subparagraph (B). Such modifications shall
require compliance with the requirements of the regulations
not later than 1 year after the issuance of the regulations.
‘‘(D) Enforcement of regulations issued under sub-
paragraph (B), and inspections required in the course
thereof, shall be conducted by the Office of Enforcement of
the Office of Environment, Safety, and Health of the De-
partment of Energy. The Secretary shall transmit to the
Congress an annual report on the implementation of this
subparagraph.’’.
SEC. 14. UNREASONABLE RISK CONSULTATION.
Section 170 of the Atomic Energy Act of 1954 (42
U.S.C. 2210) is amended by adding at the end the following
new subsection:
‘‘v. UNREASONABLE RISK CONSULTATION.—Before en-
tering into an agreement of indemnification under this sec-
tion with respect to a utilization facility, the Nuclear Regu-
latory Commission shall consult with the Assistant to the
President for Homeland Security (or any successor official)
concerning whether the location of the proposed facility and
the design of that type of facility ensure that the facility
provides for adequate protection of public health and safety
if subject to a terrorist attack.’’.
SEC. 15. FINANCIAL ACCOUNTABILITY.
(a) AMENDMENT.—Section 170 of the Atomic Energy
Act of 1954 (42 U.S.C. 2210) is amended by adding at the
end the following new subsection:
‘‘w. 
FINANCIAL
ACCOUNTABILITY.—(1) 
Notwith-
standing subsection d., the Attorney General may bring an
action in the appropriate United States district court to
recover from a contractor of the Secretary (or subcontractor
or supplier of such contractor) amounts paid by the Federal
Government under an agreement of indemnification under
subsection d. for public liability resulting from conduct
which constitutes intentional misconduct of any corporate
officer, manager, or superintendent of such contractor (or
subcontractor or supplier of such contractor).
‘‘(2) The Attorney General may recover under para-
graph (1) an amount not to exceed the amount of the profit
derived by the defendant from the contract.
‘‘(3) No amount recovered from any contractor (or sub-
contractor or supplier of such contractor) under paragraph
(1) may be reimbursed directly or indirectly by the Depart-
ment of Energy.
‘‘(4) Paragraph (1) shall not apply to any nonprofit
entity conducting activities under contract for the Sec-
retary.
‘‘(5) No waiver of a defense required under this section
shall prevent a defendant from asserting such defense in an
action brought under this subsection.
‘‘(6) The Secretary shall, by rule, define the terms
‘profit’ and ‘nonprofit entity’ for purposes of this sub-
section. Such rulemaking shall be completed not later than
180 days after the date of the enactment of this subsection.’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall not apply to any agreement of indemnification
entered into under section 170 d. of the Atomic Energy Act
of 1954 (42 U.S.C. 2210(d)) before the date of the enactment
of this Act.
SEC. 16. CIVIL PENALTIES.
(a) REPEAL
OF AUTOMATIC REMISSION.—Section
234A b. (2) of the Atomic Energy Act of 1954 (42 U.S.C.
2282a(b)(2)) is amended by striking the last sentence.
(b) LIMITATION FOR NONPROFIT INSTITUTIONS.—Sub-
section d. of section 234A of the Atomic Energy Act of 1954
(42 U.S.C. 2282a(d)) is amended to read as follows:
‘‘d. Notwithstanding subsection a., a contractor, sub-
contractor, or supplier described in section 501(c)(3) of the
Internal Revenue Code of 1986 and exempt from tax under
section 501(a) of such Code shall not be subject to a civil
penalty for a violation under subsection a. in excess of the
amount of any discretionary fee paid to such contractor,
subcontractor, or supplier under the contract under which
such violation occurs.’’.
(c) EFFECTIVE DATE.—The amendments made by this
Act shall not apply to any violation of the Atomic Energy
Act of 1954 occurring under a contract entered into before
the date of the enactment of this Act.
Union Calendar No. 180
107TH CONGRESS
1ST SESSION
H. R. 2983
[Report No. 107–299, Part I]
A BILL
To extend indemnification authority under section
170 of the Atomic Energy Act of 1954, and for
other purposes.
NOVEMBER 20, 2001
Committee on Science discharged; committed to the Com-
mittee of the Whole House on the State of the Union
and ordered to be printed