An Act to amend the Atomic Energy Act of 1954, as amended, to provide for the phaseout of governmental indemnity as a source of funds for public remuneration in the event of a nuclear incident, and for other purposes.
PL 94-197 (H.R.8631), enacted 12/31/1975

PUBLIC LAW 94-197—DEC. 31, 1975 
89 STAT. 1111 
Public Law 94-197 
94th Congress 
An Act 
To amend the Atomic Energy Act of 1954, as amended, to provide for the 
phaseout of governmental indemnity as a source of funds for public remunera-
tion in the event of a nuclear incident, and for other purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled, That section 11 of 
the Atomic Energy Act of 1964, as amended, is amended b)^ amending 
subsections q. and t. to read as follows: 
"q. The term 'nuclear incident' means any occurrence, including an 
extraordinary nuclear occurrence, within the United States causing, 
within or outside the United States, bodily injury, sickness, disease, 
or death, or loss of or damage to property, or loss of use of property, 
arising out of or resulting from the radioactive, toxic, explosive, or 
other hazardous properties of source, special nuclear, or byproduct 
material: Provided, however, That as the term is used in subsection 
170 1., it shall include any such occurrence outside the United States: 
A7id provided further, That as the term is used in subsection 170 d., 
it shall include any such occurrence outside the United States if such 
occurrence involves source, special nuclear, or byproduct material 
owned by, and used by or under contract with, the United States: And 
provided further. That as the term is used in subsection 170 c, it shall 
include any such occurrence outside both the United States and any 
other nation if such occurrence arises out of or results from the radio-
active, toxic, explosive, or other hazardous properties of source, special 
nuclear, or byproduct material licensed pursuant to chapters 6, 7, 8, 
and 10 of this Act, which is used in connection with the operation of a 
licensed stationary production or utilization facility or which moves 
outside the territorial limits of the United States in transit from one 
person licensed by the Commission to another person licensed by the 
Commission. 
"t. The term 'person indemnified' means (1) with respect to a 
nuclear incident occurring within the United States or outside the 
United States as the term is used in subsection 170 c, and with respect 
to any nuclear incident in connection with the design, development, 
construction, operation, repair, maintenance, or use of the nuclear 
ship Savannah, the person with whom an indemnity agreement is 
executed or who is required to maintain financial protection, and any 
other person who may be liable for public liability or (2) with respect 
to any other nuclear incident occurring outside the United States, the 
person with whom an indemnity agreement is executed and any other 
person who may be liable for public liability by reason of his activities 
under any contract with the Commission or any project to which 
indemnification under the provisions of subsection 170 d. has been 
extended or under any subcontract, purchase order, or other agreement, 
of any tier, under any such contract or project.". 
SEC. 2. Subsection 170 a. of the Atomic Energy Act of 1954, as 
amended, is amended to read as follows: 
"a. Each license issued under section 103 or 104 and each construc-
tion permit issued under section 185 shall, and each license issued 
under section 53, 63, or 81 may, for the public purposes cited in sub-
section 2 i. of the Atomic Energy Act of 1954, as amended, have as 
Dec. 31. 1975 
[H.R. 86311 
Nuclear incident. 
Public 
remuneration. 
42 u s e 2014. 
"Nuclear 
incident." 
42 u s e 2210. 
42 u s e 2071, 
2091, 2111, 
2131. 
"Person 
indemnified." 
42 u s e 2210. 
42 u s e 2133, 
2134. 
42 u s e 2235. 
42 u s e 2073, 
2093, 2111. 
42 u s e 2012. 
89 STAT. 1112 
PUBLIC LAW 94-197—DEC. 31, 1975 
a condition of the license a requirement that the licensee have and 
maintain financial protection of such type and in such amounts as the 
Commission in the exercise of its licensing and regulatory authority 
42 use 2210. 
and responsibility shall require in accordance with subsection 170 b. 
to cover public liability claims. Whenever such financial protection 
is required, it may be a further condition of the license that the licensee 
execute and maintain an indemnification agreement in accordance with 
subsection 170 c. The Commission may require, as a further condition 
of issuing a license, that an 'applicant waive any immunity from 
public liability conferred by Federal or State law.". 
Liability 
SEO. 3. Subsection 107 b. of the Atomic Energy Act of 1954, as 
insurance. 
amended, is amended to read as follows: 
42 use 2210. 
u|3_ 'pj^g amount of financial protection required shall be the amount 
of liability insurance available from private sources, except that the 
Commission may establish a lesser amount on the basis of criteria 
set forth in writing, which it may revise from time to time, taking 
into consideration such factors as the following: (1) the cost and 
terms of private insurance, (2) the type, size, and location of the 
licensed activity and other factors pertaining to the hazard, and 
(3) the nature and purpose of the licensed activity: Provided^ That 
for facilities designed for producing substantial amounts of electricity 
and having a rated capacity of 100,000 electrical kilowatts or more, 
the amount of financial protection required shall be the maximum 
amount available at reasonable cost and on reasonable terms from 
private sources. Such financial protection may include private insur-
ance, private contractual indemnities, self-insurance, other proof of 
financial responsibility, or a combination of such measures and shall 
be subject to such terms and conditions as the Commission may, by 
rule, regulation, or order, prescribe. In prescribing such terms and 
conditions for licensees required to have and maintain financial pro-
tection eo[ual to the maximum amount of liability insurance available 
from private sources, the Commission shall, by rule initially pre-
scribed not later than twelve months from the date of enactment of 
this Act, include, in determining such maximum amount, private 
liability insurance available under an industry retrospective rating 
plan providing for premium charges deferred in whole or major part 
until public liabilitj^ from a nuclear incident exceeds or appears likely 
to exceed the level of the primary financial protection required of the 
licensee involved in the nuclear incident: Provided^ That such insur-
ance is available to, and required of, all of the licensees of such 
facilities without regard to the manner in which they obtain other 
types or amounts of such financial protection: And provided further^ 
That the standard deferred premium which may be charged following 
any nuclear incident under such a plan shall be not less than $2,000,000 
nor more than $5,000,000 for each facility required to maintain the 
maximum amount of financial protection: And provided further. That 
the amount which may be charged a licensee following any nuclear 
incident shall not exceed the licensee's pro rata share of the aggregate 
public liability claims and costs arising out of the nuclear incident. 
Payment of any State premium taxes which may be applicable to any 
deferred premium provided for in this Act shall be the responsibility 
of the licensee and shall not be included in the retrospective premium 
established by the Commission. The Commission is authorized to estab-
lish a maximum amount which the aggregate deferred premiums 
charged for each facility within one calendar year may not exceed. 
PUBLIC LAW 94-197—DEC. 31, 1975 
89 STAT. 1113 
The Commission may establish amounts less than the standard pre-
mium for individual facilities taking into account such factors as the 
facility's size, location, and other factors pertaining to the hazard. 
The Commission shall establish such requirements as are necessary 
to assure availability of funds to meet any assessment of deferred 
premiums within a reasonable time when due, and may provide rein-
surance or shall otherwise guarantee the payment of such premiums 
in the event it appears that the amount of such premiums will not be 
available on a timely basis through the resources of private industry 
and insurance. Any agreement by the Commission with a licensee or 
indemnitor to guarantee the payment of deferred premiums may 
contain such terms as the Commission deems appropriate to carry 
out the purposes of this section and to assure reimbursement to the 
Commission for its payments made due to the failure of such licensee 
or indemnitor to meet any of its obligations arising under or in 
connection with financial protection required under this subsection 
including without limitation terms creating liens upon the licensed 
facility and the revenues derived therefrom or any other property 
or revenues of such licensee to secure such reimbursement and consent 
to the automatic revocation of any license.". 
SEC. 4. (a) Subsection 170 c. of the Atomic Energy Act of 1954, 
as amended, is amended by deleting the phrase "and August 1, 1977, 42 U
S
C 2210. 
for which it requires financial protection," in the first sentence and 
substituting therefor the phrase "and August 1, 1987, for which it 
requires financial protection of less than $560,000,000," and by deleting 
the date "August 1, 1977" in the last sentence wherever it appears and 
substituting therefor the date "August 1, 1987". 
(b) Such subsection is further amended by striking "including the 
reasonable" and inserting in lieu thereof "excluding". 
SEC. 5. (a) Subsection 170 d. of the Atomic Energy Act of 1954, 
as amended, is amended by deleting the phrase "until August 1,1977," 
in the first sentence and substituting therefor the phrase "until 
August 1, 1987,". 
(b) Such subsection is further amended by striking "including the 
reasonable" and inserting in lieu thereof "excluding". 
SEC. 6. Subsection 170 e. of the Atomic Energy Act of 1954, as 
amended, is amended to read as follows: 
"e. The aggregate liability for a single nuclear incident of persons 
indemnified, including the reasonable costs of investigating and set-
tling claims and defending suits for damage, shall not exceed (1) the 
sum of $500,000,000 together with the amount of financial protection 
required of the licensee or contractor or (2) if the amount of financial 
protection required of the licensee exceeds $60,000,000, such aggregate 
liability shall not exceed the sum of $560,000,000 or the amount of 
financial protection required of the licensee, whichever amount is 
greater: Provided^ That in the event of a nuclear incident involving 
damages in excess of that amount of aggregate liability, the Congress 
will thoroughly review the particular incident and will take whatever 
action is deemed necessary and appropriate to protect the public from 
the consequences of a disaster of such magnitude: Arid provided 
further^ That with respect to any nuclear incident occurring outside of 
the United States to which an agreement of indemnification entered 
into under the provisions of subsection 170 d. is applicable, such aggre-
gate liability shall not exceed the amount of $100,000,000 together with 
the amount of financial protection required of the contractor.". 
Single incident, 
aggregate 
liability. 
Congressional 
review. 
89 STAT. 1114 
PUBLIC LAW 94-197—DEC. 31, 1975 
42 u s e 2210. 
42 u s e 2133. 
42 u s e 2134. 
42 u s e 2235. 
Survey of causes 
and damages, 
report to Joint 
eommittee on 
Atomic Energy 
and members of 
eongress. 
Supplemental 
report to Joint 
eommittee on 
Atomic Energy. 
SEC. 7. Subsection 170 f. of the Atomic Energy Act of 1954, as 
amended, is amended to read as follows: 
"f. The Commission is authorized to collect a fee from all persons 
with whom an indemnification agreement is executed under this sec-
tion. This fee shall be $30 per year per thousand kilowatts of thermal 
energy capacity for facilities licensed under section 103: Provided^ 
That the Commission is authorized to reduce the fee for such facilities 
in reasonable relation to increases in financial protection required 
above a level of $60,000,000. For facilities licensed under section 104, 
and for construction permits under section 185, the Commission is 
authorized to reduce the fee set forth above. The Commission shall 
establish criteria in writing for determination of the fee for facilities 
licensed under section 104, taking into consideration such factors as 
(1) the type, size, and location of facility involved, and other factors 
pertaining to the hazard, and (2) the nature and purpose of the 
facility. For other licenses, the Commission shall collect such nominal 
fees as it deems appropriate. No fee under this subsection shall be less 
than $100 per year.". 
SEC. 8. The last sentence of subsection 170 h. of the Atomic Energy 
Act of 1954, as amended, is amended by striking "may include reason-
able" and inserting in lieu thereof "shall not include". 
SEC. 9. Subsection 170 i. of the Atomic Energy Act of 1954, as 
amended, is amended to read as follows: 
"i. After any nuclear incident which will probably require pay-
ments by the United States under this section or which will probably 
result in public liability claims in excess of $560,000,000, the Commis-
sion shall make a survey of the causes and extent of damage which shall 
forthwith be reported to the Joint Committee, to the Congressmen of 
the affected districts, and to the Senators of the affected States, and, 
except for information which Avould cause serioTis damage to the 
national defense of the United States, all final findings shall be made 
available to the public, to the parties involved and to the courts. The 
Commission shall report to the Joint Committee by April 1, 1958, and 
every year thereafter on the operations under this section.". 
SEC. 10. (a) Subsection 170 k. of the Atomic Energy Act of 1954, as 
amended, is amended by deleting the date "August 1, 1977" wherever 
it appears and substituting therefor the date "August 1, 1987". 
(b) Paragraph (1) of such subsection is amended by striking 
"including the reasonable" and inserting in lieu thereof "excluding". 
SEC. 11. Subsection 170 1. of the Atomic Energy Act of 1954, as 
amended, is amended by striking "including the reasonable" and insert-
ing in lieu thereof "excluding". 
SEC. 12. Section 170 n. (1) (iii) of the Atomic Energy Act of 1954 
is amended by striking "ten years" and inserting in lieu thereof 
"twenty years". 
SEC. 13. Subsection 170 o. of the Atomic Energy Act of 1954, as 
amended, is amended by adding at the end of the second sentence in 
subparagraph (3) the words "and shall include establishment of 
priorities between claimants and classes of claims, as necessary to 
insure the most equitable allocation of available funds.", and by add-
ing a new subparagraph (4) to read as follows: 
"(4) the Commission shall, within ninety days after a court 
shall have made such determination, deliver to the Joint Com-
mittee a supplement to the report prepared in accordance with 
subsection 170 i. of this Act setting forth the estimated require-
ments for full compensation and relief of all claimants, and recom-
mendations as to the relief to be provided.". 
PUBLIC LAW 94-197—DEC. 31, 1975 
89 STAT. 1115 
SEC. 14. Section 170 of the Atomic Energy Act of 1954, as amended, Report to 
is amended by adding subsection p., to read as follows: 
^^^T^TC^P®' 
"p. The Commission shall submit to the Congress by August 1,1983, ^^ ^^^ 22^^-
a detailed report concerning the need for continuation or modification 
of the provisions of this section, taking into account the condition of 
the nuclear industry, availability of private insurance, and the state 
of knowledge concerning nuclear safety at that time, among other 
relevant factors, and shall include recommendations as to the repeal 
or modification of any of the provisions of this section.". 
Approved December 31, 1975. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 94-648 (Joint Committee on Atomic Energy). 
SENATE REPORT No. 94-454 accompanying S. 2568 (Joint Committee on Atomic 
Energy). 
CONGRESSIONAL RECORD, VoL 121 (1975): 
Dec. 
8, considered and passed House. 
Dec. 
16, considered and passed Senate, amended, in lieu of S. 2568. 
Dec. 
17, House concurred in Senate amendment.