Pennsylvania Code › Title 25 - ENVIRONMENTAL PROTECTION › Part I - Department of Environmental Protection › Subpart D - Environmental Health and Safety › Article V - Radiological Health › Chapter 236 - LOW-LEVEL RADIOACTIVE WASTE MANAGEMENT AND DISPOSAL › Subchapter G - FINANCIAL ASSURANCES AND LIABILITY › Section 236.604 - Assurance for liability during operation

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Prior to accepting waste, the licensee
						shall have in effect insurance or other financial assurance approved by the
						Department to compensate persons for bodily injury or property damage from
						sudden or nonsudden incidents arising from the operation of the
						facility.
(b) In approving the
						licensee's insurance or other financial assurance, the Department will consider
						factors that may affect the licensee's potential exposure to liability. The
						factors include site and waste characteristics, facility design, operating
						procedures, population within 3 miles of the facility and industrial,
						commercial or other economic activity within 3 miles of the site.
(c) In approving the licensee's insurance or
						other financial assurance the Department will consider the licensee's potential
						exposure to liability as a result of claims for bodily injury or property
						damage brought against the licensee; and the licensee's duty to defend and
						indemnify the Commonwealth, the host municipality, the host county and their
						agents and employes against claims, actions, demands, liabilities and losses at
						law and equity.
(d) Based on
						consideration of the factors described in subsections (b) and (c), the
						Department will determine an amount initially sufficient for providing
						liability coverage in compliance with this section. The amount determined may
						not be less than the capital cost of bidding for, siting, acquiring, licensing,
						planning, developing and constructing the facility.
(e) After commencement of operation, the
						licensee shall annually provide to the Department information the Department
						deems necessary for its consideration in determining additional amounts of
						liability coverage necessary to meet the requirements of the act and this
						chapter. In determining the additional amounts of liability coverage required,
						the Department will consider the factors identified in subsections (b) and
						(c).
(f) The determination and
						approval by the Department of amounts or types of financial assurance under
						this section does not affect the licensee's liability or the duty of the
						licensee to have available funds that may be necessary to satisfy the
						liability.
(g) Subject to the
						approval of the Department, the licensee may use an insurance, financial or
						surety arrangement or combination of arrangements to provide the assurances
						required by this section. The licensee may provide evidence of commercial
						insurance, alone or in combination with other acceptable financial or surety
						arrangements, to satisfy the requirements of this section.
(h) Evidence of commercial insurance shall
						include the insurer's policy, including endorsements thereto, evidencing the
						liability insurance coverage it intends to issue covering the facility for
						third party claims for bodily injury and property damage caused by sudden
						incidents or nonsudden incidents arising from the operation of the
						facility.
(i) A commercial
						insurance policy offered to comply with the requirement for compensation of
						third parties for bodily injury and property damage caused by sudden or
						nonsudden incidents arising from the operation of the facility shall contain
						the following provisions:
(1) Bankruptcy or
						insolvency of the insured does not relieve the insurer of its obligations under
						the policy.
(2) The insurer is
						liable for the payment of any amount within a deductible which may apply to the
						policy, with a right of reimbursement by the insured or, in the alternative,
						the insurer includes, within the policy, a provision to pay on behalf of the
						insured a deductible amount.
(3)
						The beginning and ending dates, including tail periods, for the
						policy.
(4) The insurer will give
						at least 90 days notice to the Department and the insured before cancellation,
						termination or expiration of the policy, if upon expiration, the policy will
						not be renewed.
(5) The policy may
						not be cancelled by anyone before the expiration of the 90-day notice
						period.