ML23319A341
| ML23319A341 | |
| Person / Time | |
|---|---|
| Issue date: | 11/16/2023 |
| From: | Stewart Schneider NRC/NMSS/DREFS/RRPB |
| To: | |
| References | |
| 10 CFR Part 140, NRC-2023-0110, NRC-2023-0130 | |
| Download: ML23319A341 (8) | |
Text
Compliance with Price-Anderson Act Provisions (10 CFR Part 140)
ROP Bi-Monthly Public Meeting November 16, 2023 ADAMS Accession No. ML23319A341
Overview
- 10 CFR 140.11, Amounts of Financial Protection for Certain Reactors: Codifies the premium amounts and the maximum amount of liability insurance from private sources that licensees must have and maintain.
- Two final rules recently published that amended 10 CFR 140.11
- Inflation Adjustments to the Price-Anderson Act Financial Protection Regulations (9/5/23)
- Increase in the Maximum Amount of Primary Nuclear Liability Insurance (10/19/23)
- Both rules were done to comply with the Price-Anderson Act.
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Price-Anderson Act
- Requires that NRC:
- Adjust for inflation the maximum total and annual standard deferred premiums that may be charged to a licensee following a nuclear incident.
- Perform the adjustments not less than once during each 5-year period following 8/20/02.
- Use the aggregate percentage change in the Consumer Price Index (CPI) since the previous adjustment.
- Specifies that the amount of primary financial protection for large operating reactors shall be the maximum amount available at reasonable cost and on reasonable terms from private sources.
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Inflation Adjustments to the Price-Anderson Act Financial Protection Regulation
- 9/24/18: Last adjustment to the maximum total and annual standard deferred premiums (83 FR 4802).
- 9/5/23: NRC issues latest inflation-adjustment revision to
§ 140.11 (88 FR 60565; Docket ID: NRC-2023-0110)
- Maximum total premium - $158,026,000
- Annual standard deferred premium - $24,714,000
- Based on CPI change between March 2019 and April 2023
- Increase of about 24.44%
- Effective on 10/5/23
- Forth required adjustment 4
Increase in the Maximum Amount of Primary Nuclear Liability Insurance
- 1/1/17: Last increase adjustment to the maximum amount of primary nuclear liability insurance (81 FR 96347; 12/30/16)).
- 7/14/23: American Nuclear Insurers notified the NRC that it will be increasing its maximum available primary nuclear liability limit from $450 million to $500 million, effective on January 1, 2024 (ADAMS ML23212A986).
- 10/19/23: NRC issued latest revision to increase the liability insurance (88 FR 71988; Docket ID: NRC-2023-0130)
- Maximum amount - $500 million.
- Effective on 1/1/24 5
Rulemaking Procedure
- Final rules were published without prior public notice or opportunity for public comments.
- The Administrative Procedure Act does not require an agency to use the public notice and comment process when the agency for good cause finds that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.
- NRC found, for good cause, that solicitation of public comment was unnecessary because the Price-Anderson Act requires non-discretionary adjustment in the -
- Maximum total and annual standard deferred premiums.
- Maximum amount required for primary nuclear liability insurance.
- Requesting public comment on this non-discretionary adjustment, which is required by statute would not result in a change to the adjusted amounts.
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NRC Contacts Mai Henderson Technical Lead 301-415-3760 Mable.Henderson@nrc.gov Stewart Schneider Rulemaking Project Manager 301-415-4123 Stewart.Schneider@nrc.gov 7
Thank You 8