ML20149D860
| ML20149D860 | |
| Person / Time | |
|---|---|
| Issue date: | 04/25/1994 |
| From: | Taylor J NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| To: | Hobson D HOUSE OF REP. |
| References | |
| CCS, NUDOCS 9405200253 | |
| Download: ML20149D860 (8) | |
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WASHINGTON, D.C. 20555-0001 April 25, 1994 The Honorable David L. Hobson United States House of Representatives Washington, DC 20515
Dear Congressman Hobson:
I am responding to your letter of March 18, 1994, to Secretary O' Leary regarding the issue of data used to determine insurance for nuclear facilities.
The Department of Energy forwarded your letter to us for review and response. As you may be aware, the Price-Anderson Act, Section 170 of the Atomic Energy Act of 1954, as amended, became law on September 2,1957, and was most recently amended on August 20, 1988. The Act has as its primary objective the assurance that adequate funds would be available to satisfy liability claims of embers of the public in the unlikely event of a catastrophic nuclear accident, which has a very low probability of occurring.
Section 170b of the Atomic Energy Act requires that the NRC establish the primary amount of financial protection provided by its large power reactor licensees (i.e., those licensees operating power reactors with a rated i
capacity of 100,000 electrical kilowatts or more) equal to the maximum primary insurance available, currently $200 million per reactor site. The Price-Anderson Act also requires these large power reactor operators to participate in the secondary insurance layer whereby in the event of a nuclear accident causing damages exceeding $200 million, each reactor operator would be assessed a prorated share of damages.in excess of the primary insurance layer of up to $75.5 million per reactor per accident.
(This potential premium assessment of $75.5 million per reactor was increased on August 20, 1993, to account for inflation.) Therefore, with 115 reactors licensed to operate 1
under the Price-Anderson system, a total of approximately $9 billion is available for each reactor accident.
Section 170b of the Atomic Energy Act allows the Commission to establish lesser amounts of financial protection for smaller reactors, usually research and test reactors, using such factors such as the type, size, and location of the reactor as well as other factors pertaining to the hazard.
If the Commission does establish these lesser financial protection amounts, it must follow the formula established in Section 140.12 of Title 10 of the Code of Federal Reoulations (10 CFR 140.12). This formula does account for a population factor as one criterion for establishing insurance coverage as your constituent discussed in his letter.
Because most of these small reactors have been decommissioned and no new small reactors have been licensed, the criteria established ir.10 CFR 140.12 have not been utilized for more than 20 years.
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David L. Hobson 2
1 have enclosed a copy of a brochure that the Comission has prepared explaining the Price-Anderson Act in more detail that I hope you will find helpful.
Sincerely,
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/ p ecutive D [irector ya s
. Ta or p for Operations
Enclosure:
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omce of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission j
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O 25 Wi The Honorable David L. Hobson U.S. House of Representatives
' Washington, D.C.
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Dear Congressman Hobson:
This will acknowledge your recent letter in which you referred a letter from your constituent:
Andy Dill' Because the subject of your constituent's letter does not fall within the purview of the Department of Energy, we have forwarded your letter 'to:
'Mr. Dennis K. Rathbun
' Director
-Office-of Congressional Affairs Nuclear Regulatory Commission'.
Washington,~D.C.
20555 Sincerely, i
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- sf 4 4 Bonnie Betancourt Director of Special Projects Office of the' Executive Secretariat 4
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March 18, 1994 Secretary Hazel O' Leary US Department of Energy 1000 Independence Ave, SW Room 7A257 Washirgton, DC 20585
Dear Madame Secretary:
Enclosed you will find an inquiry regarding data used to determine 1
insurance for nuclear facilities from Andy Dill, a constituent in my Congressional District.
I share Mr. Dill's interest in this matter.
I appreciate any assistance you can provide explaining his questions and determining the feasibility of his suggestions. Please feel free to contact Jenifer Cutcher of my Washington staff if you need further information.
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'1 hank you for your assis*m in this matter.
i M VID L. HOBSON Member of Corgress
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