42 U.S.C. § 2210 : US Code - Section 2210: Indemnification and limitation of liability

Search 42 U.S.C. § 2210 : US Code - Section 2210: Indemnification and limitation of liability

(a) Requirement of financial protection for licensees
Each license issued under section 2133 or 2134 of this title and
each construction permit issued under section 2235 of this title
shall, and each license issued under section 2073, 2093, or 2111 of
this title may, for the public purposes cited in section 2012(i) of
this title, have as a condition of the license a requirement that
the licensee have and maintain financial protection of such type
and in such amounts as the Nuclear Regulatory Commission (in this
section referred to as the "Commission") in the exercise of its
licensing and regulatory authority and responsibility shall require
in accordance with subsection (b) of this section to cover public
liability claims. Whenever such financial protection is required,
it may be a further condition of the license that the licensee
execute and maintain an indemnification agreement in accordance
with subsection (c) of this section. The Commission may require, as
a further condition of issuing a license, that an applicant waive
any immunity from public liability conferred by Federal or State
law.
(b) Amount and type of financial protection for licensees
(1) The amount of primary financial protection required shall be
the amount of liability insurance available from private sources,
except that the Commission may establish a lesser amount on the
basis of criteria set forth in writing, which it may revise from
time to time, taking into consideration such factors as the
following: (A) the cost and terms of private insurance, (B) the
type, size, and location of the licensed activity and other factors
pertaining to the hazard, and (C) the nature and purpose of the
licensed activity: Provided, That for facilities designed for
producing substantial amounts of electricity and having a rated
capacity of 100,000 electrical kilowatts or more, the amount of
primary financial protection required shall be the maximum amount
available at reasonable cost and on reasonable terms from private
sources (excluding the amount of private liability insurance
available under the industry retrospective rating plan required in
this subsection). Such primary financial protection may include
private insurance, private contractual indemnities, self-insurance,
other proof of financial responsibility, or a combination of such
measures and shall be subject to such terms and conditions as the
Commission may, by rule, regulation, or order, prescribe. The
Commission shall require licensees that are required to have and
maintain primary financial protection equal to the maximum amount
of liability insurance available from private sources to maintain,
in addition to such primary financial protection, private liability
insurance available under an industry retrospective rating plan
providing for premium charges deferred in whole or major part until
public liability from a nuclear incident exceeds or appears likely
to exceed the level of the primary financial protection required of
the licensee involved in the nuclear incident: Provided, That such
insurance is available to, and required of, all of the licensees of
such facilities without regard to the manner in which they obtain
other types or amounts of such primary financial protection: And
provided further, That the maximum amount of the standard deferred
premium that may be charged a licensee following any nuclear
incident under such a plan shall not be more than $95,800,000
(subject to adjustment for inflation under subsection (t) of this
section), but not more than $15,000,000 in any 1 year (subject to
adjustment for inflation under subsection (t) of this section), for
each facility for which such licensee is required to maintain the
maximum amount of primary financial protection: And provided
further, That the amount which may be charged a licensee following
any nuclear incident shall not exceed the licensee's pro rata share
of the aggregate public liability claims and costs (excluding legal
costs subject to subsection (o)(1)(D) of this section, payment of
which has not been authorized under such subsection) arising out of
the nuclear incident. Payment of any State premium taxes which may
be applicable to any deferred premium provided for in this chapter
shall be the responsibility of the licensee and shall not be
included in the retrospective premium established by the
Commission.
(2)(A) The Commission may, on a case by case basis, assess annual
deferred premium amounts less than the standard annual deferred
premium amount assessed under paragraph (1) - 
(i) for any facility, if more than one nuclear incident occurs
in any one calendar year; or
(ii) for any licensee licensed to operate more than one
facility, if the Commission determines that the financial impact
of assessing the standard annual deferred premium amount under
paragraph (1) would result in undue financial hardship to such
licensee or the ratepayers of such licensee.
(B) In the event that the Commission assesses a lesser annual
deferred premium amount under subparagraph (A), the Commission
shall require payment of the difference between the standard annual
deferred premium assessment under paragraph (1) and any such lesser
annual deferred premium assessment within a reasonable period of
time, with interest at a rate determined by the Secretary of the
Treasury on the basis of the current average market yield on
outstanding marketable obligations of the United States of
comparable maturities during the month preceding the date that the
standard annual deferred premium assessment under paragraph (1)
would become due.
(3) The Commission shall establish such requirements as are
necessary to assure availability of funds to meet any assessment of
deferred premiums within a reasonable time when due, and may
provide reinsurance or shall otherwise guarantee the payment of
such premiums in the event it appears that the amount of such
premiums will not be available on a timely basis through the
resources of private industry and insurance. Any agreement by the
Commission with a licensee or indemnitor to guarantee the payment
of deferred premiums may contain such terms as the Commission deems
appropriate to carry out the purposes of this section and to assure
reimbursement to the Commission for its payments made due to the
failure of such licensee or indemnitor to meet any of its
obligations arising under or in connection with financial
protection required under this subsection including without
limitation terms creating liens upon the licensed facility and the
revenues derived therefrom or any other property or revenues of
such licensee to secure such reimbursement and consent to the
automatic revocation of any license.
(4)(A) In the event that the funds available to pay valid claims
in any year are insufficient as a result of the limitation on the
amount of deferred premiums that may be required of a licensee in
any year under paragraph (1) or (2), or the Commission is required
to make reinsurance or guaranteed payments under paragraph (3), the
Commission shall, in order to advance the necessary funds - 
(i) request the Congress to appropriate sufficient funds to
satisfy such payments; or
(ii) to the extent approved in appropriation Acts, issue to the
Secretary of the Treasury obligations in such forms and
denominations, bearing such maturities, and subject to such terms
and conditions as may be agreed to by the Commission and the
Secretary of the Treasury.
(B) Except for funds appropriated for purposes of making
reinsurance or guaranteed payments under paragraph (3), any funds
appropriated under subparagraph (A)(i) shall be repaid to the
general fund of the United States Treasury from amounts made
available by standard deferred premium assessments, with interest
at a rate determined by the Secretary of the Treasury on the basis
of the current average market yield on outstanding marketable
obligations of the United States of comparable maturities during
the month preceding the date that the funds appropriated under such
subparagraph are made available.
(C) Except for funds appropriated for purposes of making
reinsurance or guaranteed payments under paragraph (3), redemption
of obligations issued under subparagraph (A)(ii) shall be made by
the Commission from amounts made available by standard deferred
premium assessments. Such obligations shall bear interest at a rate
determined by the Secretary of the Treasury by taking into
consideration the average market yield on outstanding marketable
obligations to the United States of comparable maturities during
the month preceding the issuance of the obligations under this
paragraph. The Secretary of the Treasury shall purchase any issued
obligations, and for such purpose the Secretary of the Treasury may
use as a public debt transaction the proceeds from the sale of any
securities issued under chapter 31 of title 31, and the purposes
for which securities may be issued under such chapter are extended
to include any purchase of such obligations. The Secretary of the
Treasury may at any time sell any of the obligations acquired by
the Secretary of the Treasury under this paragraph. All
redemptions, purchases, and sales by the Secretary of the Treasury
of obligations under this paragraph shall be treated as public debt
transactions of the United States.
(5)(A) For purposes of this section only, the Commission shall
consider a combination of facilities described in subparagraph (B)
to be a single facility having a rated capacity of 100,000
electrical kilowatts or more.
(B) A combination of facilities referred to in subparagraph (A)
is two or more facilities located at a single site, each of which
has a rated capacity of 100,000 electrical kilowatts or more but
not more than 300,000 electrical kilowatts, with a combined rated
capacity of not more than 1,300,000 electrical kilowatts.
(c) Indemnification of licensees by Nuclear Regulatory Commission
The Commission shall, with respect to licenses issued between
August 30, 1954, and December 31, 2025, for which it requires
financial protection of less than $560,000,000, agree to indemnify
and hold harmless the licensee and other persons indemnified, as
their interest may appear, from public liability arising from
nuclear incidents which is in excess of the level of financial
protection required of the licensee. The aggregate indemnity for
all persons indemnified in connection with each nuclear incident
shall not exceed $500,000,000 excluding costs of investigating and
settling claims and defending suits for damage: Provided, however,
That this amount of indemnity shall be reduced by the amount that
the financial protection required shall exceed $60,000,000. Such a
contract of indemnification shall cover public liability arising
out of or in connection with the licensed activity. With respect to
any production or utilization facility for which a construction
permit is issued between August 30, 1954, and December 31, 2025,
the requirements of this subsection shall apply to any license
issued for such facility subsequent to December 31, 2025.
(d) Indemnification of contractors by Department of Energy
(1)(A) In addition to any other authority the Secretary of Energy
(in this section referred to as the "Secretary") may have, the
Secretary shall, until December 31, 2025, enter into agreements of
indemnification under this subsection with any person who may
conduct activities under a contract with the Department of Energy
that involve the risk of public liability and that are not subject
to financial protection requirements under subsection (b) of this
section or agreements of indemnification under subsection (c) or
(k) of this section.
(B)(i)(I) Beginning 60 days after August 20, 1988, agreements of
indemnification under subparagraph (A) shall be the exclusive means
of indemnification for public liability arising from activities
described in such subparagraph, including activities conducted
under a contract that contains an indemnification clause under
Public Law 85-804 [50 U.S.C. 1431 et seq.] entered into between
August 1, 1987, and August 20, 1988.
(II) The Secretary may incorporate in agreements of
indemnification under subparagraph (A) the provisions relating to
the waiver of any issue or defense as to charitable or governmental
immunity authorized in subsection (n)(1) of this section to be
incorporated in agreements of indemnification. Any such provisions
incorporated under this subclause shall apply to any nuclear
incident arising out of nuclear waste activities subject to an
agreement of indemnification under subparagraph (A).
(ii) Public liability arising out of nuclear waste activities
subject to an agreement of indemnification under subparagraph (A)
that are funded by the Nuclear Waste Fund established in section
10222 of this title shall be compensated from the Nuclear Waste
Fund in an amount not to exceed the maximum amount of financial
protection required of licensees under subsection (b) of this
section.
(2) In an agreement of indemnification entered into under
paragraph (1), the Secretary - 
(A) may require the contractor to provide and maintain
financial protection of such a type and in such amounts as the
Secretary shall determine to be appropriate to cover public
liability arising out of or in connection with the contractual
activity; and
(B) shall indemnify the persons indemnified against such
liability above the amount of the financial protection required,
in the amount of $10,000,000,000 (subject to adjustment for
inflation under subsection (t) of this section), in the
aggregate, for all persons indemnified in connection with the
contract and for each nuclear incident, including such legal
costs of the contractor as are approved by the Secretary.
(3) All agreements of indemnification under which the Department
of Energy (or its predecessor agencies) may be required to
indemnify any person under this section shall be deemed to be
amended, on August 8, 2005, to reflect the amount of indemnity for
public liability and any applicable financial protection required
of the contractor under this subsection.
(4) Financial protection under paragraph (2) and indemnification
under paragraph (1) shall be the exclusive means of financial
protection and indemnification under this section for any
Department of Energy demonstration reactor licensed by the
Commission under section 5842 of this title.
(5) In the case of nuclear incidents occurring outside the United
States, the amount of the indemnity provided by the Secretary under
this subsection shall not exceed $500,000,000.
(6) The provisions of this subsection may be applicable to lump
sum as well as cost type contracts and to contracts and projects
financed in whole or in part by the Secretary.
(7) A contractor with whom an agreement of indemnification has
been executed under paragraph (1)(A) and who is engaged in
activities connected with the underground detonation of a nuclear
explosive device shall be liable, to the extent so indemnified
under this subsection, for injuries or damage sustained as a result
of such detonation in the same manner and to the same extent as
would a private person acting as principal, and no immunity or
defense founded in the Federal, State, or municipal character of
the contractor or of the work to be performed under the contract
shall be effective to bar such liability.
(e) Limitation on aggregate public liability
(1) The aggregate public liability for a single nuclear incident
of persons indemnified, including such legal costs as are
authorized to be paid under subsection (o)(1)(D) of this section,
shall not exceed - 
(A) in the case of facilities designed for producing
substantial amounts of electricity and having a rated capacity of
100,000 electrical kilowatts or more, the maximum amount of
financial protection required of such facilities under subsection
(b) of this section (plus any surcharge assessed under subsection
(o)(1)(E) of this section);
(B) in the case of contractors with whom the Secretary has
entered into an agreement of indemnification under subsection (d)
of this section, the amount of indemnity and financial protection
that may be required under paragraph (2) of subsection (d) of
this section; and
(C) in the case of all other licensees of the Commission
required to maintain financial protection under this section - 
(i) $500,000,000, together with the amount of financial
protection required of the licensee; or
(ii) if the amount of financial protection required of the
licensee exceeds $60,000,000, $560,000,000 or the amount of
financial protection required of the licensee, whichever amount
is more.
(2) In the event of a nuclear incident involving damages in
excess of the amount of aggregate public liability under paragraph
(1), the Congress will thoroughly review the particular incident in
accordance with the procedures set forth in subsection (i) of this
section and will in accordance with such procedures, take whatever
action is determined to be necessary (including approval of
appropriate compensation plans and appropriation of funds) to
provide full and prompt compensation to the public for all public
liability claims resulting from a disaster of such magnitude.
(3) No provision of paragraph (1) may be construed to preclude
the Congress from enacting a revenue measure, applicable to
licensees of the Commission required to maintain financial
protection pursuant to subsection (b) of this section, to fund any
action undertaken pursuant to paragraph (2).
(4) With respect to any nuclear incident occurring outside of the
United States to which an agreement of indemnification entered into
under the provisions of subsection (d) of this section is
applicable, such aggregate public liability shall not exceed the
amount of $500,000,000, together with the amount of financial
protection required of the contractor.
(f) Collection of fees by Nuclear Regulatory Commission
The Commission or the Secretary, as appropriate, is authorized to
collect a fee from all persons with whom an indemnification
agreement is executed under this section. This fee shall be $30 per
year per thousand kilowatts of thermal energy capacity for
facilities licensed under section 2133 of this title: Provided,
That the Commission or the Secretary, as appropriate, is authorized
to reduce the fee for such facilities in reasonable relation to
increases in financial protection required above a level of
$60,000,000. For facilities licensed under section 2134 of this
title, and for construction permits under section 2235 of this
title, the Commission is authorized to reduce the fee set forth
above. The Commission shall establish criteria in writing for
determination of the fee for facilities licensed under section 2134
of this title, taking into consideration such factors as (1) the
type, size, and location of facility involved, and other factors
pertaining to the hazard, and (2) the nature and purpose of the
facility. For other licenses, the Commission shall collect such
nominal fees as it deems appropriate. No fee under this subsection
shall be less than $100 per year.
(g) Use of services of private insurers
In administering the provisions of this section, the Commission
or the Secretary, as appropriate, shall use, to the maximum extent
practicable, the facilities and services of private insurance
organizations, and the Commission or the Secretary, as appropriate,
may contract to pay a reasonable compensation for such services.
Any contract made under the provisions of this subsection may be
made without regard to the provisions of section 5 of title 41 upon
a showing by the Commission or the Secretary, as appropriate, that
advertising is not reasonably practicable and advance payments may
be made.
(h) Conditions of agreements of indemnification
The agreement of indemnification may contain such terms as the
Commission or the Secretary, as appropriate, deems appropriate to
carry out the purposes of this section. Such agreement shall
provide that, when the Commission or the Secretary, as appropriate,
makes a determination that the United States will probably be
required to make indemnity payments under this section, the
Commission or the Secretary, as appropriate, shall collaborate with
any person indemnified and may approve the payment of any claim
under the agreement of indemnification, appear through the Attorney
General on behalf of the person indemnified, take charge of such
action, and settle or defend any such action. The Commission or the
Secretary, as appropriate, shall have final authority on behalf of
the United States to settle or approve the settlement of any such
claim on a fair and reasonable basis with due regard for the
purposes of this chapter. Such settlement shall not include
expenses in connection with the claim incurred by the person
indemnified.
(i) Compensation plans
(1) After any nuclear incident involving damages that are likely
to exceed the applicable amount of aggregate public liability under
subparagraph (A), (B), or (C) of subsection (e)(1) of this section,
the Secretary or the Commisison,(!1) as appropriate, shall - 
(A) make a survey of the causes and extent of damage; and
(B) expeditiously submit a report setting forth the results of
such survey to the Congress, to the Representatives of the
affected districts, to the Senators of the affected States, and
(except for information that will cause serious damage to the
national defense of the United States) to the public, to the
parties involved, and to the courts.
(2) Not later than 90 days after any determination by a court,
pursuant to subsection (o) of this section, that the public
liability from a single nuclear incident may exceed the applicable
amount of aggregate public liability under subparagraph (A), (B),
or (C) of subsection (e)(1) of this section the President shall
submit to the Congress - 
(A) an estimate of the aggregate dollar value of personal
injuries and property damage that arises from the nuclear
incident and exceeds the amount of aggregate public liability
under subsection (e)(1) of this section;
(B) recommendations for additional sources of funds to pay
claims exceeding the applicable amount of aggregate public
liability under subparagraph (A), (B), or (C) of subsection
(e)(1) of this section, which recommendations shall consider a
broad range of possible sources of funds (including possible
revenue measures on the sector of the economy, or on any other
class, to which such revenue measures might be applied);
(C) 1 or more compensation plans, that either individually or
collectively shall provide for full and prompt compensation for
all valid claims and contain a recommendation or recommendations
as to the relief to be provided, including any recommendations
that funds be allocated or set aside for the payment of claims
that may arise as a result of latent injuries that may not be
discovered until a later date; and
(D) any additional legislative authorities necessary to
implement such compensation plan or plans.
(3)(A) Any compensation plan transmitted to the Congress pursuant
to paragraph (2) shall bear an identification number and shall be
transmitted to both Houses of Congress on the same day and to each
House while it is in session.
(B) The provisions of paragraphs (4) through (6) shall apply with
respect to consideration in the Senate of any compensation plan
transmitted to the Senate pursuant to paragraph (2).
(4) No such compensation plan may be considered approved for
purposes of subsection (e)(2) of this section unless between the
date of transmittal and the end of the first period of sixty
calendar days of continuous session of Congress after the date on
which such action is transmitted to the Senate, the Senate passes a
resolution described in paragraph 6 (!2) of this subsection.
(5) For the purpose of paragraph (4) of this subsection - 
(A) continuity of session is broken only by an adjournment of
Congress sine die; and
(B) the days on which either House is not in session because of
an adjournment of more than three days to a day certain are
excluded in the computation of the sixty-day calendar period.
(6)(A) This paragraph is enacted - 
(i) as an exercise of the rulemaking power of the Senate and as
such it is deemed a part of the rules of the Senate, but
applicable only with respect to the procedure to be followed in
the Senate in the case of resolutions described by subparagraph
(B) and it supersedes other rules only to the extent that it is
inconsistent therewith; and
(ii) with full recognition of the constitutional right of the
Senate to change the rules at any time, in the same manner and to
the same extent as in the case of any other rule of the Senate.
(B) For purposes of this paragraph, the term "resolution" means
only a joint resolution of the Congress the matter after the
resolving clause  of  which  is  as  follows:  "That  the          
approves the compensation plan numbered            submitted
to the Congress on            , 19  .", the first blank space
therein being filled with the name of the resolving House and the
other blank spaces being appropriately filled; but does not include
a resolution which specifies more than one compensation plan.
(C) A resolution once introduced with respect to a compensation
plan shall immediately be referred to a committee (and all
resolutions with respect to the same compensation plan shall be
referred to the same committee) by the President of the Senate.
(D)(i) If the committee of the Senate to which a resolution with
respect to a compensation plan has been referred has not reported
it at the end of twenty calendar days after its referral, it shall
be in order to move either to discharge the committee from further
consideration of such resolution or to discharge the committee from
further consideration with respect to such compensation plan which
has been referred to the committee.
(ii) A motion to discharge may be made only by an individual
favoring the resolution, shall be highly privileged (except that it
may not be made after the committee has reported a resolution with
respect to the same compensation plan), and debate thereon shall be
limited to not more than one hour, to be divided equally between
those favoring and those opposing the resolution. An amendment to
the motion shall not be in order, and it shall not be in order to
move to reconsider the vote by which the motion was agreed to or
disagreed to.
(iii) If the motion to discharge is agreed to or disagreed to,
the motion may not be renewed, nor may another motion to discharge
the committee be made with respect to any other resolution with
respect to the same compensation plan.
(E)(i) When the committee has reported, or has been discharged
from further consideration of, a resolution, it shall be at any
time thereafter in order (even though a previous motion to the same
effect has been disagreed to) to move to proceed to the
consideration of the resolution. The motion shall be highly
privileged and shall not be debatable. An amendment to the motion
shall not be in order, and it shall not be in order to move to
reconsider the vote by which the motion was agreed to or disagreed
to.
(ii) Debate on the resolution referred to in clause (i) of this
subparagraph shall be limited to not more than ten hours, which
shall be divided equally between those favoring and those opposing
such resolution. A motion further to limit debate shall not be
debatable. An amendment to, or motion to recommit, the resolution
shall not be in order, and it shall not be in order to move to
reconsider the vote by which such resolution was agreed to or
disagreed to.
(F)(i) Motions to postpone, made with respect to the discharge
from committee, or the consideration of a resolution or motions to
proceed to the consideration of other business, shall be decided
without debate.
(ii) Appeals from the decision of the Chair relating to the
application of the rules of the Senate to the procedures relating
to a resolution shall be decided without debate.
(j) Contracts in advance of appropriations
In administering the provisions of this section, the Commission
or the Secretary, as appropriate, may make contracts in advance of
appropriations and incur obligations without regard to sections
1341, 1342, 1349, 1350, and 1351, and subchapter II of chapter 15,
of title 31.
(k) Exemption from financial protection requirement for nonprofit
educational institutions
With respect to any license issued pursuant to section 2073,
2093, 2111, 2134(a), or 2134(c) of this title, for the conduct of
educational activities to a person found by the Commission to be a
nonprofit educational institution, the Commission shall exempt such
licensee from the financial protection requirement of subsection
(a) of this section. With respect to licenses issued between August
30, 1954, and December 31, 2025, for which the Commission grants
such exemption:
(1) the Commission shall agree to indemnify and hold harmless
the licensee and other persons indemnified, as their interests
may appear, from public liability in excess of $250,000 arising
from nuclear incidents. The aggregate indemnity for all persons
indemnified in connection with each nuclear incident shall not
exceed $500,000,000, including such legal costs of the licensee
as are approved by the Commission;
(2) such contracts of indemnification shall cover public
liability arising out of or in connection with the licensed
activity; and shall include damage to property of persons
indemnified, except property which is located at the site of and
used in connection with the activity where the nuclear incident
occurs; and
(3) such contracts of indemnification, when entered into with a
licensee having immunity from public liability because it is a
State agency, shall provide also that the Commission shall make
payments under the contract on account of activities of the
licensee in the same manner and to the same extent as the
Commission would be required to do if the licensee were not such
a State agency.
Any licensee may waive an exemption to which it is entitled under
this subsection. With respect to any production or utilization
facility for which a construction permit is issued between August
30, 1954, and December 31, 2025, the requirements of this
subsection shall apply to any license issued for such facility
subsequent to December 31, 2025.
(l) Presidential commission on catastrophic nuclear accidents
(1) Not later than 90 days after August 20, 1988, the President
shall establish a commission (in this subsection referred to as the
"study commission") in accordance with the Federal Advisory
Committee Act (5 U.S.C. App.) to study means of fully compensating
victims of a catastrophic nuclear accident that exceeds the amount
of aggregate public liability under subsection (e)(1) of this
section.
(2)(A) The study commission shall consist of not less than 7 and
not more than 11 members, who - 
(i) shall be appointed by the President; and
(ii) shall be representative of a broad range of views and
interests.
(B) The members of the study commission shall be appointed in a
manner that ensures that not more than a mere majority of the
members are of the same political party.
(C) Each member of the study commission shall hold office until
the termination of the study commission, but may be removed by the
President for inefficiency, neglect of duty, or malfeasance in
office.
(D) Any vacancy in the study commission shall be filled in the
manner in which the original appointment was made.
(E) The President shall designate one of the members of the study
commission as chairperson, to serve at the pleasure of the
President.
(3) The study commission shall conduct a comprehensive study of
appropriate means of fully compensating victims of a catastrophic
nuclear accident that exceeds the amount of aggregate public
liability under subsection (e)(1) of this section, and shall submit
to the Congress a final report setting forth - 
(A) recommendations for any changes in the laws and rules
governing the liability or civil procedures that are necessary
for the equitable, prompt, and efficient resolution and payment
of all valid damage claims, including the advisability of
adjudicating public liability claims through an administrative
agency instead of the judicial system;
(B) recommendations for any standards or procedures that are
necessary to establish priorities for the hearing, resolution,
and payment of claims when awards are likely to exceed the amount
of funds available within a specific time period; and
(C) recommendations for any special standards or procedures
necessary to decide and pay claims for latent injuries caused by
the nuclear incident.
(4)(A) The chairperson of the study commission may appoint and
fix the compensation of a staff of such persons as may be necessary
to discharge the responsibilities of the study commission, subject
to the applicable provisions of the Federal Advisory Committee Act
(5 U.S.C. App.) and title 5.
(B) To the extent permitted by law and requested by the
chairperson of the study commission, the Administrator of General
Services shall provide the study commission with necessary
administrative services, facilities, and support on a reimbursable
basis.
(C) The Attorney General, the Secretary of Health and Human
Services, and the Director of the Federal Emergency Management
Agency shall, to the extent permitted by law and subject to the
availability of funds, provide the study commission with such
facilities, support, funds and services, including staff, as may be
necessary for the effective performance of the functions of the
study commission.
(D) The study commission may request any Executive agency to
furnish such information, advice, or assistance as it determines to
be necessary to carry out its functions. Each such agency is
directed, to the extent permitted by law, to furnish such
information, advice or assistance upon request by the chairperson
of the study commission.
(E) Each member of the study commission may receive compensation
at the maximum rate prescribed by the Federal Advisory Committee
Act (5 U.S.C. App.) for each day such member is engaged in the work
of the study commission. Each member may also receive travel
expenses, including per diem in lieu of subsistence under sections
5702 and 5703 of title 5.
(F) The functions of the President under the Federal Advisory
Committee Act (5 U.S.C. App.) that are applicable to the study
commission, except the function of reporting annually to the
Congress, shall be performed by the Administrator of General
Services.
(5) The final report required in paragraph (3) shall be submitted
to the Congress not later than the expiration of the 2-year period
beginning on August 20, 1988.
(6) The study commission shall terminate upon the expiration of
the 2-month period beginning on the date on which the final report
required in paragraph (3) is submitted.
(m) Coordinated procedures for prompt settlement of claims and
emergency assistance
The Commission or the Secretary, as appropriate, is authorized to
enter into agreements with other indemnitors to establish
coordinated procedures for the prompt handling, investigation, and
settlement of claims for public liability. The Commission or the
Secretary, as appropriate, and other indemnitors may make payments
to, or for the aid of, claimants for the purpose of providing
immediate assistance following a nuclear incident. Any funds
appropriated to the Commission or the Secretary, as appropriate,
shall be available for such payments. Such payments may be made
without securing releases, shall not constitute an admission of the
liability of any person indemnified or of any indemnitor, and shall
operate as a satisfaction to the extent thereof of any final
settlement or judgment.
(n) Waiver of defenses and judicial procedures
(1) With respect to any extraordinary nuclear occurrence to which
an insurance policy or contract furnished as proof of financial
protection or an indemnity agreement applies and which - 
(A) arises out of or results from or occurs in the course of
the construction, possession, or operation of a production or
utilization facility,
(B) arises out of or results from or occurs in the course of
transportation of source material, byproduct material, or special
nuclear material to or from a production or utilization facility,
(C) during the course of the contract activity arises out of or
results from the possession, operation, or use by a Department of
Energy contractor or subcontractor of a device utilizing special
nuclear material or byproduct material,
(D) arises out of, results from, or occurs in the course of,
the construction, possession, or operation of any facility
licensed under section 2073, 2093, or 2111 of this title, for
which the Commission has imposed as a condition of the license a
requirement that the licensee have and maintain financial
protection under subsection (a) of this section,
(E) arises out of, results from, or occurs in the course of,
transportation of source material, byproduct material, or special
nuclear material to or from any facility licensed under section
2073, 2093, or 2111 of this title, for which the Commission has
imposed as a condition of the license a requirement that the
licensee have and maintain financial protection under subsection
(a) of this section, or
(F) arises out of, results from, or occurs in the course of
nuclear waste activities.(!3)
the Commission or the Secretary, as appropriate, may incorporate
provisions in indemnity agreements with licensees and contractors
under this section, and may require provisions to be incorporated
in insurance policies or contracts furnished as proof of financial
protection, which waive (i) any issue or defense as to conduct of
the claimant or fault of persons indemnified, (ii) any issue or
defense as to charitable or governmental immunity, and (iii) any
issue or defense based on any statute of limitations if suit is
instituted within three years from the date on which the claimant
first knew, or reasonably could have known, of his injury or damage
and the cause thereof. The waiver of any such issue or defense
shall be effective regardless of whether such issue or defense may
otherwise be deemed jurisdictional or relating to an element in the
cause of action. When so incorporated, such waivers shall be
judicially enforcible in accordance with their terms by the
claimant against the person indemnified. Such waivers shall not
preclude a defense based upon a failure to take reasonable steps to
mitigate damages, nor shall such waivers apply to injury or damage
to a claimant or to a claimant's property which is intentionally
sustained by the claimant or which results from a nuclear incident
intentionally and wrongfully caused by the claimant. The waivers
authorized in this subsection shall, as to indemnitors, be
effective only with respect to those obligations set forth in the
insurance policies or the contracts furnished as proof of financial
protection and in the indemnity agreements. Such waivers shall not
apply to, or prejudice the prosecution or defense of, any claim or
portion of claim which is not within the protection afforded under
(i) the terms of insurance policies or contracts furnished as proof
of financial protection, or indemnity agreements, and (ii) the
limit of liability provisions of subsection (e) of this section.
(2) With respect to any public liability action arising out of or
resulting from a nuclear incident, the United States district court
in the district where the nuclear incident takes place, or in the
case of a nuclear incident taking place outside the United States,
the United States District Court for the District of Columbia,
shall have original jurisdiction without regard to the citizenship
of any party or the amount in controversy. Upon motion of the
defendant or of the Commission or the Secretary, as appropriate,
any such action pending in any State court (including any such
action pending on August 20, 1988) or United States district court
shall be removed or transferred to the United States district court
having venue under this subsection. Process of such district court
shall be effective throughout the United States. In any action that
is or becomes removable pursuant to this paragraph, a petition for
removal shall be filed within the period provided in section 1446
of title 28 or within the 30-day period beginning on August 20,
1988, whichever occurs later.
(3)(A) Following any nuclear incident, the chief judge of the
United States district court having jurisdiction under paragraph
(2) with respect to public liability actions (or the judicial
council of the judicial circuit in which the nuclear incident
occurs) may appoint a special caseload management panel (in this
paragraph referred to as the "management panel") to coordinate and
assign (but not necessarily hear themselves) cases arising out of
the nuclear incident, if - 
(i) a court, acting pursuant to subsection (o) of this section,
determines that the aggregate amount of public liability is
likely to exceed the amount of primary financial protection
available under subsection (b) of this section (or an equivalent
amount in the case of a contractor indemnified under subsection
(d) of this section); or
(ii) the chief judge of the United States district court (or
the judicial council of the judicial circuit) determines that
cases arising out of the nuclear incident will have an unusual
impact on the work of the court.
(B)(i) Each management panel shall consist only of members who
are United States district judges or circuit judges.
(ii) Members of a management panel may include any United States
district judge or circuit judge of another district court or court
of appeals, if the chief judge of such other district court or
court of appeals consents to such assignment.
(C) It shall be the function of each management panel - 
(i) to consolidate related or similar claims for hearing or
trial;
(ii) to establish priorities for the handling of different
classes of cases;
(iii) to assign cases to a particular judge or special master;
(iv) to appoint special masters to hear particular types of
cases, or particular elements or procedural steps of cases;
(v) to promulgate special rules of court, not inconsistent with
the Federal Rules of Civil Procedure, to expedite cases or allow
more equitable consideration of claims;
(vi) to implement such other measures, consistent with existing
law and the Federal Rules of Civil Procedure, as will encourage
the equitable, prompt, and efficient resolution of cases arising
out of the nuclear incident; and
(vii) to assemble and submit to the President such data,
available to the court, as may be useful in estimating the
aggregate damages from the nuclear incident.
(o) Plan for distribution of funds
(1) Whenever the United States district court in the district
where a nuclear incident occurs, or the United States District
Court for the District of Columbia in case of a nuclear incident
occurring outside the United States, determines upon the petition
of any indemnitor or other interested person that public liability
from a single nuclear incident may exceed the limit of liability
under the applicable limit of liability under subparagraph (A),
(B), or (C) of subsection (e)(1) of this section:
(A) Total payments made by or for all indemnitors as a result
of such nuclear incident shall not exceed 15 per centum of such
limit of liability without the prior approval of such court;
(B) The court shall not authorize payments in excess of 15 per
centum of such limit of liability unless the court determines
that such payments are or will be in accordance with a plan of
distribution which has been approved by the court or such
payments are not likely to prejudice the subsequent adoption and
implementation by the court of a plan of distribution pursuant to
subparagraph (C); and
(C) The Commission or the Secretary, as appropriate, shall, and
any other indemnitor or other interested person may, submit to
such district court a plan for the disposition of pending claims
and for the distribution of remaining funds available. Such a
plan shall include an allocation of appropriate amounts for
personal injury claims, property damage claims, and possible
latent injury claims which may not be discovered until a later
time and shall include establishment of priorities between
claimants and classes of claims, as necessary to insure the most
equitable allocation of available funds. Such court shall have
all power necessary to approve, disapprove, or modify plans
proposed, or to adopt another plan; and to determine the
proportionate share of funds available for each claimant. The
Commission or the Secretary as appropriate, any other indemnitor,
and any person indemnified shall be entitled to such orders as
may be appropriate to implement and enforce the provisions of
this section, including orders limiting the liability of the
persons indemnified, orders approving or modifying the plan,
orders staying the payment of claims and the execution of court
judgments, orders apportioning the payments to be made to
claimants, and orders permitting partial payments to be made
before final determination of the total claims. The orders of
such court shall be effective throughout the United States.
(D) A court may authorize payment of only such legal costs as
are permitted under paragraph (2) from the amount of financial
protection required by subsection (b) of this section.
(E) If the sum of public liability claims and legal costs
authorized under paragraph (2) arising from any nuclear incident
exceeds the maximum amount of financial protection required under
subsection (b) of this section, any licensee required to pay a
standard deferred premium under subsection (b)(1) of this section
shall, in addition to such deferred premium, be charged such an
amount as is necessary to pay a pro rata share of such claims and
costs, but in no case more than 5 percent of the maximum amount
of such standard deferred premium described in such subsection.
(2) A court may authorize the payment of legal costs under
paragraph (1)(D) only if the person requesting such payment has - 
(A) submitted to the court the amount of such payment
requested; and
(B) demonstrated to the court - 
(i) that such costs are reasonable and equitable; and
(ii) that such person has - 
(I) litigated in good faith;
(II) avoided unnecessary duplication of effort with that of
other parties similarly situated;
(III) not made frivolous claims or defenses; and
(IV) not attempted to unreasonably delay the prompt
settlement or adjudication of such claims.
(p) Reports to Congress
The Commission and the Secretary shall submit to the Congress by
December 31, 2021, detailed reports concerning the need for
continuation or modification of the provisions of this section,
taking into account the condition of the nuclear industry,
availability of private insurance, and the state of knowledge
concerning nuclear safety at that time, among other relevant
factors, and shall include recommendations as to the repeal or
modification of any of the provisions of this section.
(q) Limitation on awarding of precautionary evacuation costs
No court may award costs of a precautionary evacuation unless
such costs constitute a public liability.
(r) Limitation on liability of lessors
No person under a bona fide lease of any utilization or
production facility (or part thereof or undivided interest therein)
shall be liable by reason of an interest as lessor of such
production or utilization facility, for any legal liability arising
out of or resulting from a nuclear incident resulting from such
facility, unless such facility is in the actual possession and
control of such person at the time of the nuclear incident giving
rise to such legal liability.
(s) Limitation on punitive damages
No court may award punitive damages in any action with respect to
a nuclear incident or precautionary evacuation against a person on
behalf of whom the United States is obligated to make payments
under an agreement of indemnification covering such incident or
evacuation.
(t) Inflation adjustment
(1) The Commission shall adjust the amount of the maximum total
and annual standard deferred premium under subsection (b)(1) of
this section not less than once during each 5-year period following
August 20, 2003, in accordance with the aggregate percentage change
in the Consumer Price Index since - 
(A) August 20, 2003, in the case of the first adjustment under
this subsection; or
(B) the previous adjustment under this subsection.
(2) The Secretary shall adjust the amount of indemnification
provided under an agreement of indemnification under subsection (d)
of this section not less than once during each 5-year period
following July 1, 2003, in accordance with the aggregate percentage
change in the Consumer Price Index since - 
(A) that date, in the case of the first adjustment under this
paragraph; or
(B) the previous adjustment under this paragraph.
(3) 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.