ML20059H321

Final Rule 10CFR140, Adjustment of Max Std Deferred Premium. Rule Increases Max Std Deferred Premium from Listed Amount,Per Reactor,Per Accident,To Listed Amount

ML20059H321
Person / Time
Issue date:	08/02/1993
From:	Sniezek J NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
References
FRN-58FR42851, RULE-PR-140 NUDOCS 9311100047
Download: ML20059H321 (6)

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-9 P A :21 fiUCLEAR REGULATORY COMMISSION l

10 CFR PART 140 RIN 3150-AE75 Adjustment of the Maximum Standard Deferred Premium AGENCY:

Nuclear Regulatory Commission.

ACTION:

Final Rule.

SUMMARY

The liuclear Regulatory Commission (NRC) is amending its regulations to increase the maximum standard deferred premium, presently established at 563 million per reactor per accident (but not to exceed $10 million in any one year), to 575.5 million per reactor per accident (but not to exceed 510 million in any one year), in accordance with the aggregate percentage change of 19.9 percent in the Consumer Price Index (CPI) from August 1988 through March 1993.

EFFECTIVE DATE:

August 20, 1993.

FOR FURTHER INFORMATION CONTACT:

Ira Dinitz, Office of fluclear Reactor l

Regulation, U.S. Nuclear Regulatory Commission, Washington, D.C. 20555, l

l telephone (301) 504-1289.

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9311100047 930802 PDR PR (c.,,

M 140 5BFR42851 0

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SUPPLEMEf4TARY If4 FORMAT 10ft:

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 $63 million) for inflation.

Section 15 added a new Section 170t. to the Atomic Energy Act of 1954, as amended ("AEAct").

Section 170t. provides as follows:

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INFLATION ADJUSTMEf4T.

-- (1) The Commission shall adjust the amount of the maximum standard deferred premium under subsection i

b.(1) [Section 170b.(1) of the AEAct] not less than once during each 5-year period following the date of the enactment of the Price-Anderson Amendments Act of 1988 in accordance with the aggregate percentage change in the Consumer Price Index since --

(A) such date of enactment, in the case of the first adjustment i

under this subsection; or (B) the previous adjustment under this subsection.

(2) For purposes of this subsection, the term " Consumer Price Index" means the Consumer Price Index for all urban consumers published by the Secretary of Labor.

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 Consumer Price Index (CPI) for all urban consumers published by the Secretary of Labor. The aggregate percentage increase in the CPI from August 1988 through March 1993 is 19.9 percent.

This number is derived by dividing the September 1988 CPI index by the March 1993 CPI index. The new maximum standard deferred premium, computed by multiplying $63 million by 0.199 and adding the product to $63 million, will be $75.5 million.

Therefore, as of August 20,1993,10 CFR 140.11(a)(4) will require that large nuclear power plant licensees maintain, in addition to $200 million in primary financial 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

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be made not later than August 20, 1998, and will be based on the incremental change in the CPI since March 1993.

Because this inflation adjustment by the Commission is essentially 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 to 563 million), the Commission finds that there is good cause for omitting notice and public procedure (in the form of a proposed rule) on-this action as i

l unnecessary.

In view of the impending statutory deadline for implementing this change to its regulations, the Commission finds that there exists good cause for making the rule effective on August 20,1993 (less than 30 days after publication of the final rule in the Federal Register).

l Environmental Impact:

Categorical Exclusion The f1RC has determined that this final rule is the type of action described in categorical exclusion 10 CFR 51.22(c)(1). Therefore, neither an environmental impact statement nor an environmental assessment has been prepared for this final rule.

Paperwork Reduction Act Statement 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.).

Existing requirements were approved by the Office of Management and Budget, approval number 3150-0039.

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l l 1 Regulatory flexibility Certification l

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i As required by the Regulatory Flexibility Act of 1980, 5 U.S.C. 605(b),

the Commission certifies that this final rule will not have a significant i

impact upon a substantial number of small entities.

The rule will potentially affect licensees of approximately 116 nuclear power reactors. Nuclear power l

plant licensees do not fall within the definition of small businesses as j

t defined in Section 3 of the Small Business Act (15 U.S.C. 632), the Small i

Business Size Standards of the Small Business Administration (13 CFR Part i

121), or the Commission's Size Standards (50 FR 50241; December 9,1985).

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Backfit Analysis l

l The NRC has determined that this final rule does not impose a backfit as defineo in 10 CFR 50.109(a)(1) because it is statutorily required. Therefore, l

a backfit analysis is not required for this rule.

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t List of Subjects in 10 CFR Part 140' l

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Part 140 - Criminal penalty, Extraordinary nuclear occurrence, Insurance, Intergovernmental relations, Nuclear materials, Nuclear power l

plants and reactors, Reporting and recordkeeping requirements.

j For the reasons set out in the preamble and under the authority of the Atomic Energy Act of 1954 (as amended), the Energy Reorganization Act of 1974 i

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(as amended), and 5 U.S.C. 552 and 553, the NRC is adopting the following amendment to 10 CFR Part 140

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l Part 140 - FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS l

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1. The authority citation for Part 140 continues to read as follows:

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i Authority:

Secs. 161, 170, 68 Stat. 948, 71 Stat. 576, as amended j

a (42 U.S.C. 2201, 2210); secs. 201, as amended, 202, 88 Stat. 1242, as amended, 1244 (42 U.S.C. 5841, 5842).

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2. Section 140.11(a)(4) is revised to read as follows-f

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1 5 140.11 Amounts of financial protection for certain reactors.

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i (a) Each licensee is required to have and maintain financial i

j protection:

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i (4) In an amount equal to the sum of $200,000,000 and the amount l

available as secondary financial protection (in the form of private i

liability insurance available under an industry retrospective rating i

plan providing for deferred premium charges equal to the pro rata share of the aggregate public liability claims and costs, excluding costs 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 electrical energy and has a rated capacity of 100,000 electrical i

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. kilowatts or more:

Provided, however, that under such a plan for i

l deferred premium charges for each nuclear reactor which is licensed to operate, no more than 575,500,000 with respect to any nuclear incident (plus any surcharge assessed under subsection 1700.(1){E) of the Act) and no more than $10,000,000 per incident within one calendar year shall be charged.

Dated at Rockville, Maryland this J wk day of ut MS 1993.

O For the Nuclear Regulatory Commission.

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a Jemis H. Sniezek d

l Ac 'ng Executive Director or Operations l

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