ML20045G366
| ML20045G366 | |
| Person / Time | |
|---|---|
| Issue date: | 06/30/1993 |
| From: | Taylor J NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| To: | |
| References | |
| SECY-93-186, NUDOCS 9307130254 | |
| Download: ML20045G366 (9) | |
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RULEMAKING ISSUE June 30, 1993 SEcy_,3_18e (NEGATIVE CONSENT)
E0R:
The Commissioners FROM:
James M. Taylor Executive Director for Operations
SUBJECT:
FINAL RULE, 10 CFR PART 140, " FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS" PURPOSE:
To inform the Commission that the Executive Director for Operations (EDO) intends to publish a final rule increasing the standard deferred premium j
required by the Price-Anderson Act based on the inflation rate.
SUMMARY
This rule amends the regulations in 10 CFL 140.ll(a)(4) to increase the I
standard deferred premium, which is presently established at 563 million per reactor per accident (but not to exceed $10 million in any one year), ta 575.5 million per reactor per accident (but not to exceed $10 million in any I
one year) in accordance with the aggregate percentage change (since August l
1988) in the Consumer Price Index (CPI) for all urban consumers published by I
the Secretary of Labor.
CATEGORY:
This is a negative consent item.
l DISCUSSION:
Section 15, " Inflation Adjustment," of Public Law 100-408, "The Price-Anderson Amendments Act of 1988," enacted on August 20, 1988, (now section 170t. of the Atomic Energy Act of 1954, as amended) requires the Commission to adjust the amount of tne maximum standard deferred premium (currently 563 million) based on the aggregate percentage change in the CPI since August 1988.
This premium adjustment is required by statute at least once during the period from August 20, 1988, to August 20, 1993.
The aggregate percentage increase in the CPI from September 1988 through March 1993 was 19.9 percent.
Contact:
NOTE:
TO BE MADE PUBLICLY AVAILABLE 1ra Dinitz WHEN THE FINAL SRM IS MADE 504-1289 AVAILABLE 170033
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The Commissioners 2
f Therefore, effective August 20, 1993, which should be at least 30 days after publication of this final rule in the Federal Reaister, the amount of the maximum standard deferred premium will be 575.5 million per reactor per accident (but not to exceed $10 million in any one year).
The next infiction i
adjustment in the amount of the maximum standard deferred premium will be made not later than August 20, 1998, and will be based on the incremental change in the CPI since March 1993.
Because this action by the Commission is essentially ministerial in nature (e.g., multiplying 563 million by the percentage increase in the CPI published by the Secretary of Labor and adding this amount to 563 million), there is good cause for omitting notice and public procedure (in the form of a proposed rule) on this action as unnecessary.
C0 ORDINATION:
The Office of the General Counsel has no legal objection to this paper.
RECOMMENDATION:
0 That the Commission note:
1 (1)
The EDO plans to sign the final rule revising 10 CFR 140.ll(a)(4) as given in the draf t Federal Reaister Notice (Enclosure 1) in 10 working
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days from the date of this paper, unless otherwise directed by the Commission.
(2)
In 10 working days from the date of this paper, unless otherwise directed by the Commission, the EDO will certify that this final rule will not have a significant economic impact on a substantial number of small entities in accordance with the Regulatory Flexibility Act of 1980, 5 U.S.C. 605(b).
(3)
The Chief Counsel of Advocacy of the Small Business Administration will be informed of the certification and the reasons for it, as required by the Regulatory Flexibility Act.
(4)
This final rule does not contain a new or amended information collection requirement subject to the Paperwork Reduction Act of 1980 (44 U.S.C.
3501, et seq.).
l (5)
The final rule will not constitute a backfit under 10 CFR 50.109; j
therefore, a backfit analysis is not required.
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Q%C h e's M. T or
.ecutive irector j
for Operations
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Enclosure:
I Draft Federal Register Notice i
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SECY NOTE:
In the absence of instructions to the contrary, SECY j
will notify the staff on Friday, July 16, 1993, that the' Commission, by negative consent, assents to the action proposed in this paper.
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[7590-01-P]
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NUCLEAR REGULATORY COMMISSION 10 CFR PART 140 RIN 3150-AE75 Adjustment of the Maximum i
Standard Deferred Premium j
4 AGENCY:
Nuclear Regulatory Commission.
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ACTION:
Final Rule.
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SUMMARY
The Nuclear Regulatory Commission (NRC) is amending its regulations l
l to increase the maximum standard deferred premium, presently established at i
$63 million per reactor per accident (but not to exceed 510 million in any one 4
year), to 575.5 million per reactor per accident (but not to exceed i
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$10 millicn in any one year), in accordance with the' aggregate percentage i
change of 19.9 percent in the Consumer Price Index (CPI) from August 1988 1
through March 1993.
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i EFFECTIVE DATE:
August 20, 1993.
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FOR FURTHER INFORMATION CONTACT:
Ira Dinitz, Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, D.C. 20555, telephone (301) 504-1289.
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SUPPLEMENTARY INFORMATION:
Section 15 of Public Law 100-408, the Price-Anderson Amendments Act of 1988 ("the Act") enacted on August 20, 1988, requires the Commission to adjust the maximum standard deferred premium (presently 563 million) for inflation.
Section 15 added a new Section 170t. to the Atomic Energy Act of 1954, as
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t amended ("AEAct").
Section 170t. provides as follows:
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INFLATION ADJUSTMENT. -- (1) The Commission shall adjust the l
amount of the maximum standard deferred premium under subsection l
b.(1) [Section 170b.(1) of the AEAct] not less than once during l
l each 5-year period following the date of the enactment of the j
i Price-Anderson Amendments Act of 1988 in accordance with the aggregate percentage change in the Consumer Price Index since --
l (A) such date of enactment, in the case of the first adjustment j
3 under this subsection; or 1
i (B) the previous adjustment under this subsection.
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(2) For purposes of this subsection, the term " Consumer Price i
i Index" means the Consumer Price Index for all urban consumers t
published by the Secretary of Labor.
l The inflation adjustment required by Section 170t.(1)(A) of the AEAct must be in accordance with the aggregate percentage change (since August 1988) in the i
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Consumer Price Index (CPI) for all urban consumers published by the Secretary of Labor. The aggregate percentage increase in the CPI from August 1988
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through March 1993 is 19.9 percent. This number is derived by dividing the j
i September 1988 CPI index by the March 1993 CPI index. The new maximum l
standard deferred premium, computed by multiplying 563 million by 0.199 and l
adding the product to 563 million, will be 575.5 million.
Therefore, as of q
August 20,1993,10 CFR 140.ll(a)(4) will require that large nuclear power j
plant licensees maintain, in addition to $200 million in primary financial I
protection, a new maximum standard deferred premium of $75.5 million per reactor per accident (but not to exceed $10 million in any one year)
The next inflation adjustment in the amount of the standard deferred premium will 4
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be made not later than August 20, 1998, and will be based on the incremental I
change in the CPI since March 1993.
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Because this inflation adjustment by the Commission is essentially l
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ministerial in nature (e.g., multiplying 563 million by the percentage l
increase in the CPI published by the Secretary of Labor and adding this amount l
l to $63 million), the Commission finds that there is good cause for omitting i
notice and public procedure (in the form of a proposed rule) on this action as q
unnecessary.
Environmental Impact:
Categorical Exclusion 1
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The NRC has determined that this final rule is the type of action described in categorical exclusion.10 CFR 51.22(c)(1).
Therefore, neither an environme'tal impact statement nor an environmental assessment has been prepared for this final rule.
I Paperwork Reduction Act Statement l
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j This final rule does not contain a new or amended information collection j
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requirement subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.).
Existing requirements were approved by the Office of Management and Budget, approval number 3150-0011.
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Regulatory flexibility Certification i
A*, required by the Regulatory Flexibility Act of 1980, 5 U.S.C. 605(b),
i the Commission certifies that this final rule will not have a significant f
I impact upon a substantial number of small entities. The rule will potentially i
affect licensees of approximately 116 nuclear power reactors.
Nuclear power plant licensees do not fall within the definition of small businesses as i
defined in Section 3 of the Small Business Act (15 U.S.C. 632), the Small l
Business Size Standards of the Small Business Administrction (13 CFR Part 121), or the Commission's Size Standards (50 FR 50241; December 9, 1985).
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Backfit Analysis i
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The NRC has determined that this final rule does not impose a backfit as defined in 10 CFR 50.109(a)(1) because it is statutorily required. Therefore,
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a backfit analysis is not required for this rule.
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j List of Subjects in 10 CFR Part 140
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i Part 140 - Criminal penalty, Extraordinary nuclear occurrence, Insurance, Intergovernmental relations, Nuclear materials, Nuclear power
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plants and reactors, Reporting and recordkeeping requirements.
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For the reasons set out in the preamble and under the authority of the I
Atomic Energy Act of 1954 (as amended), the Energy Reorganization Act of 1974 J
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(as amended), and 5 U.S.C. 552 and 553, the NRC is-adopting the following l
amendment to 10 CFR Part 140:
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Part 140 - FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS
- 1. The authority citation for Part 140 continues to read as follows-I j
Authority:
Secs. 161, 170, 68 Stat. 948, 71 Stat. 576, as amended l
(42 U.S.C. 2201, 2210); secs. 201, as amended, 202, 88 Stat. 1242, as amended, j
1244 (42 U.S.C. 5841, 5842).
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- 2. Section 140.ll(a)(4) is revised to read as follows:
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s 140.11 Amounts of financial orotection for certain reactors.
(a) Each licensee is required to have and maintain financial j
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protection:
j (4) In an on~. " equal to the sum of $200,000,000 and the amount i
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j available as secondary financial protection (in the form of private i
liability insurance available under an industry retrospective rating a
1 plan providing for deferred premium charges equal to the pro rata share l
r of the aggregate public. liability claims and costs, excluding costs j
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payment of which is not authorized by section 1700.(1)(D), in excess of that covered by primary financial protection) for each nuclear reactor which is licensed to operate and which is designed for the production of i
electrical energy and has a rated capacity of 100,000 electrical I
i e i kilowatts or more:
Provided, however, that under such s plan for i
deferred premium charges for each nuclear reactor which is licensed to operate, no more than $75,500,000 with respect to any nuclear incident I
(plus any surcharge assessed under subsection 1700.(1)(E) of the Act) l 2
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and no more than 510,000,000 per incident within one calendar year shall f
l be charged.
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Dated at Rockville, Maryland this day of
, 1993.
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i For the Nuclear Regulatory Commission.
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i James M. Taylor,
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Executive Director for Operations.
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