II
Calendar No. 240
107TH CONGRESS
1ST SESSION
H. R. 2983
IN THE SENATE OF THE UNITED STATES
NOVEMBER 28, 2001
Received and read the first time
NOVEMBER 29, 2001
Read the second time and placed on the calendar
AN ACT
To extend indemnification authority under section 170 of
the Atomic Energy Act of 1954, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
HR 2983 PCS
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Price-Anderson Reau-
thorization Act of 2001’’.
SEC. 2. EXTENSION OF INDEMNIFICATION AUTHORITY.
(a) INDEMNIFICATION
OF NUCLEAR REGULATORY
COMMISSION LICENSEES.—Section 170 c. of the Atomic
Energy Act of 1954 (42 U.S.C. 2210(c)) is amended—
(1) in the subsection heading, by striking ‘‘LI-
CENSES’’ and inserting ‘‘LICENSEES’’; and
(2) by striking ‘‘August 1, 2002’’ each place it
appears and inserting ‘‘August 1, 2017’’.
(b) INDEMNIFICATION OF DEPARTMENT OF ENERGY
CONTRACTORS.—Section 170 d.(1)(A) of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2210(d)(1)(A)) is amended
by striking ‘‘August 1, 2002’’ and inserting ‘‘August 1,
2017’’.
(c) INDEMNIFICATION OF NONPROFIT EDUCATIONAL
INSTITUTIONS.—Section 170 k. of the Atomic Energy Act
of 1954 (42 U.S.C. 2210(k)) is amended by striking ‘‘Au-
gust 1, 2002’’ each place it appears and inserting ‘‘August
1, 2017’’.
SEC. 3. MAXIMUM ASSESSMENT.
Section 170 b.(1) of the Atomic Energy Act of 1954
(42 U.S.C. 2210(b)(1)) is amended—
(1) in the second proviso of the third
sentence—
HR 2983 PCS
(A) by striking ‘‘$63,000,000’’ and insert-
ing ‘‘$94,000,000’’; and
(B) by striking ‘‘$10,000,000 in any 1
year’’ and inserting ‘‘$15,000,000 in any 1 year
(subject to adjustment for inflation under sub-
section t.)’’; and
(2) in subsection t.—
(A) by inserting ‘‘total and annual’’ after
‘‘amount of the maximum’’;
(B) by striking ‘‘the date of the enactment
of the Price-Anderson Amendments Act of
1988’’ and inserting ‘‘July 1, 2001’’; and
(C) by striking ‘‘such date of enactment’’
and inserting ‘‘July 1, 2001’’.
SEC. 4. DEPARTMENT OF ENERGY LIABILITY LIMIT.
(a) INDEMNIFICATION OF DEPARTMENT OF ENERGY
CONTRACTORS.—Section 170 d. of the Atomic Energy Act
of 1954 (42 U.S.C. 2210(d)) is amended by striking para-
graph (2) and inserting the following:
‘‘(2) INDEMNIFICATION AGREEMENTS.—In an agree-
ment of indemnification entered into under paragraph (1),
the Secretary—
‘‘(A) may require the contractor to provide and
maintain the financial protection of such a type and
in such amounts as the Secretary shall determine to
HR 2983 PCS
be appropriate to cover public liability arising out of
or in connection with the contractual activity; and
‘‘(B) shall indemnify the persons indemnified
against such liability above the amount of the finan-
cial 
protection 
required, 
in 
the 
amount 
of
$10,000,000,000 (subject to adjustment for inflation
under subsection t.), in the aggregate, for all per-
sons indemnified in connection with the contract and
for each nuclear incident, including such legal costs
of the contractor as are approved by the Secretary.’’.
(b) CONTRACT AMENDMENTS.—Section 170 d. of the
Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is
amended by striking paragraph (3) and inserting the fol-
lowing:
‘‘(3) CONTRACT AMENDMENTS.—All agreements of
indemnification under which the Department of Energy
(or its predecessor agencies) may be required to indemnify
any person under this section shall be deemed to be
amended, on the date of enactment of the Price-Anderson
Reauthorization Act of 2001, to reflect the amount of in-
demnity for public liability and any applicable financial
protection required of the contractor under this sub-
section.’’.
HR 2983 PCS
(c) LIABILITY LIMIT.—Section 170 e.(1)(B) of the
Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(1)(B)) is
amended—
(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 ‘‘para-
graph (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—
HR 2983 PCS
(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
Consumer Price Index since—
‘‘(A) that date, in the case of the first adjust-
ment 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 Com-
mission shall consider a combination of facilities described
in subparagraph (B) to be a single facility having a rated
capacity of 100,000 electrical kilowatts or more.
‘‘(B) A combination of facilities referred to in sub-
paragraph (A) is 2 or more facilities located at a single
site, each of which has a rated capacity of 100,000 elec-
HR 2983 PCS
trical kilowatts or more but not more than 300,000 elec-
trical kilowatts, 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 fol-
lowing new subsection:
‘‘u. PROHIBITION ON ASSUMPTION OF LIABILITY FOR
CERTAIN FOREIGN ACCIDENTS.—Notwithstanding this
section or any other provision of law, no officer of the
United States or of any department, agency, or instrumen-
tality of the United States Government may enter into any
contract or other arrangement, or into any amendment or
modification of a contract or other arrangement, the pur-
pose or effect of which would be to directly or indirectly
impose liability on the United States Government, or any
department, agency, or instrumentality of the United
States Government, or to otherwise directly or indirectly
require an indemnity by the United States Government,
HR 2983 PCS
for nuclear accidents occurring in connection with the de-
sign, construction, or operation of a production facility or
utilization facility in any country whose government has
been identified by the Secretary of State as engaged in
state sponsorship of terrorist activities (specifically includ-
ing 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, section 6(j)(1) of the Export Administration Act of
1979, or section 40(d) of the Arms Export Control Act
to have repeatedly provided support for acts of inter-
national terrorism).’’.
SEC. 11. SECURE TRANSFER OF NUCLEAR MATERIALS.
(a) AMENDMENT.—Chapter 14 of the Atomic Energy
Act of 1954 (42 U.S.C. 2201–2210b) is amended by add-
ing at the end the following new section:
‘‘SEC. 170C. SECURE TRANSFER OF NUCLEAR MA-
TERIALS.—
‘‘a. The Nuclear Regulatory Commission shall estab-
lish a system to ensure that, with respect to activities by
any party pursuant to a license issued under this Act—
‘‘(1) materials described in subsection b., when
transferred or received in the United States—
‘‘(A) from a facility licensed by the Nu-
clear Regulatory Commission;
HR 2983 PCS
‘‘(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,
are accompanied by a manifest describing the type
and amount of materials being transferred;
‘‘(2) each individual transferring or accom-
panying the transfer of such materials has been sub-
ject to a security background check by appropriate
Federal entities; and
‘‘(3) such materials are not transferred to or
received at a destination other than a facility li-
censed by the Nuclear Regulatory Commission or an
agreement State under this Act or other appropriate
Federal facility, or a destination outside the United
States in a country with whom the United States
has an agreement for cooperation under section 123.
‘‘b. Except as otherwise provided by the Commission
by regulation, the materials referred to in subsection a.
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))).’’.
HR 2983 PCS
(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 Regu-
latory Commission shall issue regulations identifying ra-
dioactive materials that, consistent with the protection of
public health and safety and the common defense and se-
curity, are appropriate exceptions to the 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
subsection (a) shall take effect upon the issuance of regu-
lations under subsection (b).
(d) EFFECT ON OTHER LAW.—Nothing in this sec-
tion or the amendment made by this section shall waive,
modify, or affect the application of chapter 51 of title 49,
United States Code, part A of subtitle V of title 49,
United States Code, part B of subtitle VI of title 49,
United States Code, and title 23, United States Code.
(e) 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. Secure transfer 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,
HR 2983 PCS
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, bio-
chemical, 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
shipments by multiple coordinated teams of a large
number of individuals.
HR 2983 PCS
(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
foreign government or other person, or other-
wise falling under the responsibilities of the
Federal Government; or
(B) involving the type of risks that Nu-
clear Regulatory Commission licensees should
be responsible 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 Con-
gress 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.
HR 2983 PCS
(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 regu-
lations, 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
safeguards response evaluation program that ensures that
the physical protection capability and operational safe-
guards response for sensitive nuclear facilities, as deter-
mined 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, observed, and evaluated force-on-force exer-
cises to determine whether the ability to defeat the design
basis threat is being maintained. For purposes of this sub-
section, the term ‘‘sensitive nuclear facilities’’ includes at
a minimum commercial nuclear power plants, including
associated spent fuel storage facilities, spent fuel storage
pools and dry cask storage at closed reactors, independent
spent fuel storage facilities and geologic repository oper-
ations areas, category I fuel cycle facilities, and gaseous
diffusion plants.
HR 2983 PCS
(f) CONTROL OF INFORMATION.—In carrying out this
section, the President and the Nuclear Regulatory Com-
mission shall control the dissemination of restricted data,
safeguards information, and other classified national secu-
rity information in a manner so as to ensure the common
defense 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
enactment of this paragraph, the Secretary shall issue in-
dustrial health and safety regulations that shall apply to
all Department of Energy contractors and subcontractors
who are covered under agreements entered into under this
subsection for operations at Department of Energy nu-
clear facilities. 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
HR 2983 PCS
and construction safety regulations of the Occupational
Safety and Health Administration (29 CFR 1910 and
1926), and shall establish civil penalties for violation
thereof that are substantially 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
enactment of this paragraph, all agreements described in
subparagraph (B), and all contracts and subcontracts for
the indemnified contractors and subcontractors, shall be
modified to incorporate the requirements of the regula-
tions issued under subparagraph (B). Such modifications
shall require compliance with the requirements of the reg-
ulations 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
Department of Energy. The Secretary shall transmit to
the Congress an annual report on the implementation of
this subparagraph.
HR 2983 PCS
‘‘(E) This paragraph shall not apply to facilities and
activities covered by section 7 of the Export Administra-
tion Act of 1979 (50 U.S.C. 2406).’’.
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 fol-
lowing new subsection:
‘‘v. UNREASONABLE RISK CONSULTATION.—Before
entering into an agreement of indemnification under this
section with respect to a utilization facility, the Nuclear
Regulatory 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 En-
ergy 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 subcon-
tractor or supplier of such contractor) amounts paid by
HR 2983 PCS
the Federal Government under an agreement of indem-
nification 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 con-
tractor).
‘‘(2) The Attorney General may recover under para-
graph (1) an amount not to exceed the amount of the prof-
it derived by the defendant from the contract.
‘‘(3) No amount recovered from any contractor (or
subcontractor or supplier of such contractor) under para-
graph (1) may be reimbursed directly or indirectly by the
Department 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 sec-
tion 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 sub-
section.’’.
HR 2983 PCS
(b) EFFECTIVE DATE.—The amendment made by
this section shall not apply to any agreement of indem-
nification 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.—
Subsection d. of section 234A of the Atomic Energy Act
of 1954 (42 U.S.C. 2282a(d)) is amended to read as fol-
lows:
‘‘d. Notwithstanding subsection a., a civil penalty for
a violation under subsection a. shall not exceed the amount
of any discretionary fee paid under the contract under
which such violation occurs for any nonprofit contractor,
subcontractor, or supplier—
‘‘(1) described in section 501(c)(3) of the Inter-
nal Revenue Code of 1986 and exempt from tax
under section 501(a) of such Code; or
‘‘(2) identified by the Secretary by rule as ap-
propriate to be treated the same under this sub-
section as an entity described in paragraph (1), con-
sistent with the purposes of this section.’’.
HR 2983 PCS
(c) EFFECTIVE DATE.—The amendments made by
this section 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.
(d) RULEMAKING.—Not later than 6 months after
the date of the enactment of this Act, the Secretary of
Energy shall issue a rule for the implementation of the
amendment made by subsection (b).
Passed the House of Representatives November 27,
2001.
Attest:
JEFF TRANDAHL,
Clerk.
Calendar No. 240
107TH CONGRESS
1ST SESSION
H. R. 2983
AN ACT
To extend indemnification authority under section
170 of the Atomic Energy Act of 1954, and for
other purposes.
NOVEMBER 29, 2001
Read the second time and placed on the calendar