ML19225B983
| ML19225B983 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 06/12/1979 |
| From: | Gossick L NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| To: | Mica D HOUSE OF REP. |
| Shared Package | |
| ML19225B984 | List: |
| References | |
| NUDOCS 7907260314 | |
| Download: ML19225B983 (3) | |
Text
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jo UNITED STATES g
NUCLEAR REGULATORY COMMISSION 5 g (N y
e(3 g 2 E WASHINGTON, D. C. 20555 J
JUN 121979 The Honorable Daniel A. Mica United States House of Representatives Washington, D. C.
20515
Dear Congressman Mica:
As you requested in your letter dated May 16, 1979, we are sending you a copy of our staff report on the Price-Anderson Act. The staff report, which was prepared by the NRC's predecessor, the Atomic Energy Commission, appears in pages 1-58 of the enclosed " Selected Materials on Atomic Energy Indemnity and Insurance Legislation."
Additiona'lly, we are enclosing the relevant chapter from NRC's 1978 Annual Report to Congress. To update the figures contained in this chapter, the following information is provided: The first layer, or private liability insurance, has been increased from $140 million to $160 million as of May 1, 1979. The second layer currently consists of the licensees of 67 reactors each potentially paying up to $5 million per reactor per accident to a total of $335 million. The third layer, or government indemnity, is
$65 million. The total of the three layers remains at $560 million, the current statutory limit of liability imposed by the Price-Anderson Act.
We hope this information will prove helpful in answering your constituent's questions.
Sincerely, y M.L?.;'=.
Lee V. Gossick j\\ Executive Director for Operations Enclosures.
- 1. " Selected.tterials on Atomic Energy Indemnity and Insurance Legislation"
- 2. Chapter from NRC's 1978 Annual Report to Congress
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NI 398 001 7907200 3/4
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i INDEMNITY AND INSURANCE e'[ g an appropriate remedy. Th: matter s nding before the Licensing Board.
a result of a review of a complaint by the p
Y U.)'of Cleveland, the NRC sent, on June 28, NRC's regulations implementing the Price-3 Notice of7iolation to the Cleveland Anderson Act provide a three-layered system to l
th'rie Illuminating Company regarding non-pay public liability claims in the remote event of 9
ljance with antitrust I nse conditions that a nuclear incident causing personal injury or irnposed on the Davis-Besse and Perry con-propert. damage. The first layer of this system hction permits. Responses to the Notice from requires all licensees of commercial nuclear rties involved with the complaint are cur-power plants rated at 100 electrical megawatts or h:ly under review.
more to provide proof of financial protection in ge Rorida Municipal Utilities Association an amount equal to the maximum liability in-l 3 metal Horida cities filed late intervention surance avai'able from private sources. Current-
'h. ions in connection with the St. Lucie, Unit 2 l'/, tais n. count is $140 million.
l gceding. An Atomic Safety and Licensing itw second layer provides a mechanism-pav-
'wd granted intervention to the cities. The ment of a retrospective premium-whereby the 3
Mian of the Licensing Board was affirmed by utility industry wotJd share liability for any 9
h ypeal Board and subsequently by the Com-dainages exceeding 5140 million that result from hion on June 2S,1978. Pre-hearing Discosery a nuclear incident. In the event of a nuclear inci-how underway in the St. Lucie 2 proceeding.
dent causing damages exceeding 5140 million, in response to a request, the Commission, in each licensee of a commercial reactor rated at jnection with an Operating License applica-100 electrical megawatts or more would be 3.n for the South Texas Facility determined that assessed a prorated share of damages of up to r : the purpose of antitrust review "significant the statutory maximum of 55 million per reactor
,w.ges" have occurred since the prior review of per incident.
I i
a application by the Attorney General and re-The third layer-Government indemnity-pied the Attorney General's advice as to equals the difference between the 5560 million actber an antitrust hearing was required. The limit of liability and the st'm of the first and wrney General in a letter dated February 21 second layers. Currently, the third layer is 585 v8 cdsised the Commission that he reco n-million. Government indemnity for reactors'will~
rended that an antitrust hearing be held in con-be phased out when the sum of the first and nuon with this app!ication. An Atomic Safety second layers provides liability coverage of $560
...d Y.icensing Board has been constituted and million. Under the current level of primary tu ruled with respect to several petitions for financial protection required by the Commis-me to intervene. The Atomic Safety and sion, this will occur when Sa commercial reac-l t semir.g 30ard has adopted a general statement tors have been licensed. After that point, the a e,ucs and has ordered the initiation of limit of liability for a single nuclear incident l
J.wosery. In a related matter, the Commission would increase without limit in incr ements of 55 m June 21,197S determined that "significant million for each new commercial reactor 2nges" have occurred since the construction licensed.
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.mt anutrust review of the application for the d
( emanche Peak Nuclear Power Plant Units 1 Constitutionality of the Price-Anderson Act.
4-J 2 (Texas). The Commission directed the On June 26, 1978. the U.S. Supreme Court l[
off to seek additional advice from the Attorney unanimously upheld the consututionality of the
(<neral with respect to the antitrust aspects of Price-Anderson Act's limitation on liability for
,I N application. On July 31,1973 the Attorney nuc! ear incidents. This decision reversed a deci-
{n uneral recommended an antitrust hearing.
sion by the U.S. District Court for the Western IWosery has been progressing in the antitrust District of North Carclina.
% ceding for Pacific Gas and Electric Com-The opinion of the Court, written by Chief gy
n 2?clication for its Stanislaus Nuclear Justice Burger, stated that the record " fully sup-i P"act P! ant (Calif.). Several sets of inter-ports the need for the irnposition of a statutory ln
- ratories have been propounded by the parties, limit on liability to encourage private industry arJ document production has commenced.
participation." Thus, the Court concluded that d
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56 the Price-Anderson Act " bears a rational rela-losses or ultimate return to policyholders. The tionship to Congress' concern for stimulating the amount of the reserse asailable for refund is invols ment of private enterprise in the produc-determined on the basis of foss experience of all tion o electric energy through the use of atomic policy holders o.er the preceding 10-year period.
power.SFurther, the court held "the congres-Refunds paid in 1978 totalled 52,178,638, w hich i
sional decision to fix a 5560 million ceiling, at is approximately 71 percent of all premiums paid on the nuclear liability insurance policies issued this stage in the private development and pro-in 1968. The refunds represent 99 percent of the duction sf electric energy by nuclear power, to be withia permissible limits and not violative of premiums placed in reserve in 1968.
due process." (See discussion in Chapter 13,
\\
1 under " Judicial Review.")
IMPROVING THE LICENSING -
Indemnification of Storage of Spent Fuel at PROCESS Distant Reactor Locations. In November 1977 after publ;c notice, the Commission issued amendments to the oper. ting licenses of Carolina Powr and Light Company's Improving Effectiveness and Efficiency Brunswick Steam Elect ic Plant, Units 1 and-2, (N.C.), and H. B. RoLinson Steam Electric In 1977, the Commission directed a staff Plant, Unit 2 (S.C.), o authorize Carolina study of recently completed ticensing actions for Power and Light to tore irradiated fuel from the purpose of identifying ways to improve the the Robinson reactc r in either of the spent fuel effectiveness and efficiency of the nuclear power I
storage pools at th. Brunswick facility. After p! ant licensing process. The study and its find-public notice the Commission also amended the ines were discussed in detail in the last Annual Brunswick inderr uity agreement to redefine the Report and were published in NUREG-0292 in term "radioacth e material" in the agreement t June 1977. Nine of the Study Group recommen-provide incemc.ity coverage for storage at dations were approved by the Commission and Brunswick of the spent fuel generated by the have been implemented. The recommendations Robinson facility. Any future requests by and their status at the end of the report period licensees for similar amendments will be handled are as follows:
by the Comntission on a case-by-case basis.
(1)
Improve the Quality of Apph.catio ts by Indemnity Operations. As of September 30, improving Guiciance and Strengtheni-g 1978,137 indem.:ity agreements with NRC Acceptance Criteria. This calls for up-
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licensees were in effect Indemnity fees assessed dating the Standard Review Plan and the by the NRC from October 1,1977, through Standard Format Guide for SARs and September 30,1978, tota!!ed 51,992,5 35. Total making them effective as soon as possi-fees collected since the inception of the program ble. A system also is to be developed for are almost 520 million. Future collection of in-periodic and timely updating of the Stan-demnity fees will decrease as the indemnity pro-dard Format Guide. Considerable prog-gram is phased out for commercial reactor ress was rnade during the report period.
licensees. No payments have been made unde-a nose chantes designated as short-term the NRC's indemnity areements with licensees tr.isions hase been comp'eted and issued.
during the 21 years of the program's existence.
The entire effort is scheduled for compie-den by late Escal year 1979.
Insurance Premium Refund. The two private nuclear energy liability insurance pools -
P.)
improve the Quality of Applical;cns by American Nuclear Insurers (also known as the E immating Unnecessary Information.
Nuc! ear Energy Liability. Property Insurance This task seeks to identify information Association) and the Mutual Atomic Energy which is no longer necessary in apphca-Liabibty Underwriters - paid to policy holders tions and to considt he efforts and the twelfth annual refund of premium reserses beneEts of eliminating such information.
under their Industry Credit Rating Plan. Under A Task Force was formed and has com-the plan, a portion of the annual premiums is pleted its study. The Task Force conclud-set aside as a reserve for either payment of ed that there is little information now
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