ML19274E815
| ML19274E815 | |
| Person / Time | |
|---|---|
| Issue date: | 03/30/1979 |
| From: | Chilk S NRC OFFICE OF THE SECRETARY (SECY) |
| To: | |
| Shared Package | |
| ML19274E814 | List: |
| References | |
| NUDOCS 7904240512 | |
| Download: ML19274E815 (9) | |
Text
f Title 10 - Energy CHAPTER I - IlVCLEAR REGULATORY COMMISSION Part 140 - FIllAtlCIAL PROTECTION REQUIREMENTS ATID IllDEMNITY AGREEMENTS Misc _ellaneous Amendments AGENCY:
U.S. fluclear Regulatory Commission ACTI0ft:
Final Rule
SUMMARY
The fluclear Regulatory Commission is amending its regulations to increase the level of the primary layer of financial protection required of certain indemnified licensees.
The Commission is amending its regulations at the present time to coincide, as statutorily required, with the increase in the level of the primary layer of insurance provided by private nuclear liability insurance pools.
EFFECTIVE DATE:
May 1, 1979 FOR FURTHER INFORMATION C0!! TACT:
Mr. Ira Dinitz, Antitrust and Indemnity Group, U.S. fluclear Regulatory Commission, Washington, DC 20555.
(Phone:
301-492-8336)
SUPPLEMENTARY INFORMATION:
The provisions of Section 170 of the Atomic Energy Act of 1954, as amended, (the Act) require production and utilization facility licensees to have and maintain financial protection to cover 7 904 24 0 5f 2
public 1,iability claims resulting from a nuclear incident.
Section 170 of the Act, requires the fluclear Regulatory Commission to indemnify the licensee and other persons indemnified, up to the statutory limitation on liability, against public liability claims in excess of the amount of financial protection required.
Subsection 170b. of the Act requires that for facilities designed for producing substantial amounts of electricity and having a rated capacity of 100 electrical megawatts or more, the amount of financial protection
- required shall be the maximum amount available from private sources.
Fcr other licensees, the Commission may require lesser amounts of financial orotection.
Primary financial protection may be in the form of private insurance, private contractual indemnities, self-insurance or other proof of financial responsibility, or combination of such measures.
The insurers who provide the nuclear liability insurance, American fluclear Insurers (Afil) and Mutual Atomic Energy Liability Underwriters (fMELU), have advised the Commission that effective January 9,1979, the maximum amount of primary nuclear energy liability insurance available was increased from $140 million to $160 million.
Pursuant to the provisions of subsection 170b. of the Act, the amount of primary financial protection The Act does not by its precise language require maintenance of a
" primary" (i.e., nuclear liability insurance) layer and a " secondary" (i.e., retrospective premium) layer of financial protection but merely considers the combination of these two layers as " financial protection." However,10 CFR Part 140, of the Commission's regulations that implement the Act, discinguishes between the primary and secondary layers of financial protection.
The amendments in this rule relate solely to increases in the primary layer of financial protection.
reouired for facilities having a rated capacity of 100 electrical megawatts or more will be increaced to 5163 million, effective May 1,1979.
In addition, in compliance >:ith 10 CFR Part 140, those persons licensed to possess plutonium in the amount of 5 kilograms or more and persons licensed to process plutonium in the amount of 1 kilogram or more for use in plutonium processing and fuel fabrication plants will also be required to provide financial protect 1an in the amount of $160 million.
Since the amendments set out bt'ow conform the Commission's regulations to a statutory requirement, the Commission has found that good cause exists for omitting a value/ impact analysis, public notice of proposed rule making and public procedure thereon as unnecessary.
Pursuant to the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974, as amended, and sections 552 and 553 of Title 5 of the United States Code, the following amendments to Title 10, Chapter I, part 140, Code of Federal Regulations, are published as a document subject to codification.
1.
Section 140.ll(a)(4) is amended by deleting "$140,000,000" and substituting therefor "$160,000,000.
2.
Section 140.13a(a) is amended by deleting the term "$140,000,000" and substituting therefor "$160,000,000."
3.
In Section 140.91, Appendix A, Condition 4 is amended by revising the footnote to read as follows:
"For policies issued by Nuclear Energy Liability-Property Insurance Association the amount will be
"$124,000,000"; for policies issued by liutual Atomic Energy Liability Underwriters, the amount will be "$36,000,000."
4.
In Section 140.91, Appendix A, paragraph III of the " Optional Amendatory Endorsement" is amended by revising the footnote to read as follows:
"For policies issued by Nuclear Energy Liability-Property Insurance Association the amount will be "$124,000,000"; for policies issued by Mutual A'tomic Energy Liability Underwriters the amount will be
"$36,000,000."
5.
Section 140.92, Appendix B, Article II, p=-agraph 8(a), is amended by deleting the amount "$108,500,000" wherever it appears and substituting therefor "$124,000,000."
6.
Section 140.92, Appendix B, Article II, paragraph 8(b), is amended by deleting the amount "$31,500,000" wherever it appears and substituting therefor "$36,000,000."
7.
Section 140.92, Appendix B, Article II, paragraph 8(c), is amended by changing the amount "$140,000,000" to "$160,000,000."
8.
Section 140.92, Appendix B, Article III, paragraph 4(b)(?), is amended by changing "$140,000,000" to "$160,000,000."
9.
Section 140.93, Appendix C, Article II, paragraph 8, is amended by changing the amount "$140,000,000" to "$160,000,000."
10.
Section 140.93, Appendix C, Article III, paragraph 4(b)(2), is amended by changing "$' '7,000,000" to "$160,000,000."
11.
Section 140.94, Appendix C, Article II, paragraph 6, is amended by changing "$140,000,000" to "$160,000,000."
12.
Section 140.95, Appendix E, Article III, paragraph 4(b)(2), is amended by changing "$140,000,000" to "$160,000,000."
13.
Section 140.107, Appendix G, Article II, paragraph 6(a), is amended by deleting the amount "$108,500,000" wherever it appears and sub-stituting therefor "$124,000,000."
14.
Section 140.107, Appendix G, Article II, paragraph 6(b), is amended by deleting the amount "$31,500,000" wherever it appears and sub-sti tuting therefor "$36,000,000. "
15.
Section 140.107, Appendix G, Article II, paragraph 6(c), is amended by changing the amount "$140,000,000" to "$160,000,000."
16.
Section 140.107, Appendix G, Article III, paragraph 4(b), is amended by changing the amount "$140,000,000" to "$160,000,000."
17.
Section 140.108, Appendix H, Article II, paragraph 6, is amended by changing the amount "$140,000,000" to "$160,000,000."
18.
Section 140.108, Apperdix H, Article III, paragraph 4(b), is amended by changing the amount "$140,000,000" to "$160,000,000."
Effective date: The foregoing amendments become effective on May 1, 1979.
(Sec. 161, Pub. Law 83-703, 68 Stat. 948 (42 U.S.C. 2201); Sec. 170, Pub. Law 85-256, 71 Stat. 576, Ptb. Law 94-197, 89 Stat.1111 (42 U.S.C.
2210); Sec. 201, Pub. Law 93-438, as amended, 88 Stat.1242, 89 Stat.
415 (42 U.S.C. 5841))
Dated at
, this day of
, 1979.
FOR THE f1VCLEAR REGO, ATORY COMMISSION.
Samuel J. Chilk Secretary of the Commission
NRC ADOPTS Id!ENDMENTS TO INDEMilITY REGULATIONS
^
The Nuclear Regulatory Commission is amending its regulations which deal with the Price-Anderson Act.
That law provides financial protection to the public in the event of a serious nuclear accident involving certain activities and facilities licensed by the NRC.
The amendment to NRC regulations increases from $140 million to $160 million the amount of public liability primary insurance which some NRC licensees are required to have.
It reflects a January 9, 1979 increase in the underwriting capacity of two private insurance pools--the American Nuclear Insurers and the Mutual Atomic Energy Liability Underwriters.
By law, licensees with reactors capable of producing 100 megawatts of electrical power or more, and those authorized to possess or process significant quantities of plutonium, mari maintain financial protection equal to the amount of public liability insurance available from the pools.
Under legislation extending the Price-Anderson Act to August 1, 1987 the primary layer of insurance continues to be provided by the two insurance pools.
A secondary layer is provided in the form of " retrospective premiums" which would be assessed against each licensee in the event of an accident for whic claims exceed the pools' under-writing capacity.
-2 The retrospective premium was set by the 11RC at SS million for each licensed power reactor, the maximum allowed by law.
By the early 1980s, the time the two layers reach $560 million, Government indemnity will cease and the limit on liabi'.ity will be allowed to increase on an annual basis.
The amount of the annual increase will depend on the number if reactors licensed that year multiplied by the amount of the retrospective premium.
The amendments to Part 140 now being adopted take effect May 1, 1979, and are published in the Federal Register.
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