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sec. 2202

"SEC. 162. CONTRACTS.-The President may, in ad- Contracts. vance, exempt any specific action of the Commission in 42 U.S.C. a particular matter from the provisions of law relating to contracts whenever he determines that such action is essential in the interest of the common defense and security.

Advisory

2 U.S.C. sec. 2203.

committees.

"SEC. 163. ADVISORY COMMITTEES.-The members of the General Advisory Committee established pursuant to section 26 and the members of advisory boards established pursuant to section 161 a. may serve as such without regard to the provisions of sections 281, 283, or 284 of Title 18 of the United States Code, except insofar as 62 Stat. 697. such sections may prohibit any such member from receiving compensation from a source other than a nonprofit educational institution 40 in respect of any particular matter which directly involves the Commission or in which the Commission is directly interested.11

Electric utility

contracts.

42 U.S.C.

Bec. 2204.

"SEC. 164. ELECTRIC UTILITY CONTRACTS.-The Commission is authorized in connection with the construction or operation of the Oak Ridge, Paducah, and Portsmouth installations of the Commission, without regard to section 3679 of the Revised Statutes, as amended, to enter 31 U.S.C. 665. into new contracts or modify or confirm existing contracts to provide for electric utility services for periods not exceeding twenty-five years, and such contracts shall be subject to termination by the Commission upon payment of cancellation costs as provided in such contracts, and any appropriation presently or hereafter made available to the Commission shall be available for the payment of such cancellation costs. Any such cancellation payments shall be taken into consideration in determination of the rate to be charged in the event the Commission or any other agency of the Federal Government shall purchase electric utility services from the contractors subsequent to the cancellation and during the life of the original contract. The authority of the Commission under this section to enter into new contracts or modify or confirm existing contracts to provide for electric utility services includes, in case such electric utility services are to be furnished to the Commission by the Tennessee Valley Authority, authority to contract with any person to furnish electric utility services to the Tennessee Valley Authority in replacement thereof. Any contract hereafter entered into by the Commission pursuant to this section shall be submitted to the Joint Committee and a

40 Public Law 86-300 (73 Stat. 574) (1959), sec. 2, amended sec. 163 by inserting after the words "from receiving compensation" the words "from a source other than a nonprofit educational institution". 41 Public Law 87-849 (76 Stat. 1119) (1962), sec. 2, revised the exist ing conflict of interest laws. All exemptions from the provisions of secs. 281, 283 and 284 of Title 18 of the U.S. Code are deemed to be exemptions from the corresponding sections of the new conflict of interest law "except to the extent that they affect officers or employees of the execu tive branch of the United States Government [or] of any independent agency of the United States, ⚫ as to whom they are no longer applicable."

Contract practices. 42 U.S.C. Bec. 2205.

60 Stat. 755.

Comptroller General audit.

42 U.S.C. sec. 2206.

42 U.S.C. sec. 2207.

period of thirty days shall elapse while Congress is in session (in computing such thirty days, there shall be excluded the days on which either House is not in session because of adjournment for more than three days) before the contract of the Commission shall become effective: Provided, however, That the Joint Committee, after having received the proposed contract, may by resolution in writing, waive the conditions of or all or any portion of such thirty-day period.

"SEC. 165. CONTRACT PRACTICES.

"a. In carrying out the purposes of this Act the Commission shall not use the cost-plus-percentage-of-cost system of contracting.

"b. No contract entered into under the authority of this Act shall provide, and no contract entered into under the authority of the Atomic Energy Act of 1946, as amended, shall be modified or amended after the date of enactment of this Act to provide, for direct payment or direct reimbursement by the Commission of any Federal income taxes on behalf of any contractor performing such contract for profit.

"SEC. 166. COMPTROLLER GENERAL AUDIT.-No moneys appropriated for the purposes of this Act shall be available for payments under any contract with the Commission, negotiated without advertising, except contracts with any foreign government or any agency thereof and contracts with foreign producers, unless such contract includes a clause to the effect that the Comptroller General of the United States or any of his duly authorized representatives shall, until the expiration of three years after final payment, have access to and the right to examine any directly pertinent books, documents, papers, and records of the contractor or any of his subcontractors engaged in the performance of, and involving transactions related to such contracts or subcontracts: Provided, however, That no moneys so appropriated shall be available for payment under such contract which includes any provision precluding an audit by the General Accounting Office of any transaction under such contract: And provided further, That nothing in this section shall preclude the earlier disposal of contractor and subcontractor records in accordance with records disposal schedules agreed upon between the Commission and the General Accounting Office.42

"SEC. 167. CLAIMS SETTLEMENTS.-The Commission, acting on behalf of the United States, is authorized to consider, ascertain, adjust, determine, settle, and pay, any claim for money damage of $5,000 or less against the United States for bodily injury, death, or damage to or loss of real or personal property resulting from any detonation, explosion, or radiation produced in the con

42 Public Law 85-681 (72 Stat. 632) (1958), sec. 8. amended sec. 166 by adding the second proviso clause.

duct of any program undertaken by the Commission involving the detonation of an explosive device, where such claim is presented to the Commission in writing within one year after the accident or incident out of which the claim arises: Provided, however, That the damage to or loss of property, or bodily injury or death, shall not have been caused in whole or in part by any negligence or wrongful act on the part of the claimant, his agents, or employees. Any such settlement under the authority of this section shall be final and conclusive for all purposes, notwithstanding any other provision of law to the contrary. If the Commission considers that a claim in excess of $5,000 is meritorious and would otherwise be covered by this section, the Commission may report the facts and circumstances thereof to the Congress for its

consideration.43

"SEC. 168. PAYMENTS IN LIEU OF TAXES.-In order to render financial assistance to those States and localities in which the activities of the Commission are carried on, and in which the Commission has acquired property previously subject to State and local taxation, the Commission is authorized to make payments to State and local governments in lieu of property taxes. Such payments may be in the amounts, at the times, and upon the terms the Commission deems appropriate, but the Commission shall be guided by the policy of not making payments in excess of the taxes which would have been payable for such property in the condition in which it was acquired, except in cases where special burdens have been cast upon the State or local government by activities of the Commission, the Manhattan Engineer District or their agents. In any such case, any benefit accruing to the State or local government by reason of such activities shall be considered in determining the amount of the payment.

Payments in of taxes.

42 U.S.C.

sec. 2208.

42 U.S.C.

"SEC. 169. No SUBSIDY.-No funds of the Commission No subsidy. shall be employed in the construction or operation of sec. 2209. facilities licensed under section 103 or 104 except under contract or other arrangement entered into pursuant to section 31.

"SEC. 170. INDEMNIFICATION AND LIMITATION OF LIABILITY.*

44

"a. Each license issued under section 103 or 104 and 42 U.S.C. each construction permit issued under section 185 shall, sec. 2210.

43 Public Law 87-206 (75 Stat. 474) (1961), sec. 14, amended sec. 167. Prior to amendment this section read as follows:

"SEC. 167. CLAIM SETTLEMENTS.-The Commission, acting on behalf of the United States, is authorized to consider, ascertain, adjust, deter mine, settle, and pay, any claim for money damage of $5,000 or less against the United States for bodily injury, death, or damage to or loss of real or personal property resulting from any detonation, explosion, or radiation produced in the conduct of the Commission's program for testing atomic weapons, where such claim is presented to the Commission in writing within one year after the accident or incident out of which the claim arises: Provided, however, That the damage to or loss of property. or bodily injury or death, shall not have been caused in whole or in part by any negligence or wrongful act on the part of the claimant, his agents. or employees. Any such settlement under the authority of this section shall be final and conclusive for all purposes, notwithstanding any other provision of law to the contrary."

44 Public Law 85-256 (71 Stat. 576) (1957), sec. 4. added sec. 170.

Indemnification agreement.

Waiver.

Liability insurance

and each license issued under section 53, 63, or 81 may,
for the public purposes cited in subsection 21. of the
Atomic Energy Act of 1954, as amended, have as a con-
dition of the license a requirement that the licensee have
and maintain financial protection of such type and in
such amounts as the Commission in the exercise of its
licensing and regulatory authority and responsibility
shail require in accordance with subsection 170 b. to cover
public liability claims. Whenever such financial protec-
tion is required, it may be a further condition of the li-
cense that the licensee execute and maintain an indemni-
fication agreement in accordance with subsection 170 c.
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, 45

"b. The amount of financial protection required shall
be the amount of liability insurance available from pri-
vate sources, except that the Commission may establish
a lesser amount on the basis of criteria set forth in writ-
ing, which it may revise from time to time, taking into
consideration such factors as the following: (1) the cost
and terms of private insurance, (2) the type, size, and
location of the licensed activity and other factors per-
taining to the hazard, and (3) 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 kilo-
watts or more, the amount of financial protection
required shall be the maximum amount available at
reasonable cost and on reasonable terms from private
sources. Such financial protection may include private
insurance, private contractual indemnities, self insur-
ance, other proof of financial responsibility, or a combi-
nation of such measures and shall be subject to such terms
and conditions as the Commission may, by rule, regula-
tion, or order, prescribe. In prescribing such terms and
conditions for licensees required to have and maintain
financial protection equal to the maximum amount of lia-
bility insurance available from private sources, the Com-
mission shall, by rule initially prescribed not later than
twelve months from the date of enactment of this Act,
include, in determining such maximum amount, private
liability insurance available under an industry retrospec-
tive rating plan providing for premium charges deferred
in whole or major part until public liability from a nu-

45 Public Law 94-197 (89 Stat. 1111) (1975), Sec. 2, amended subsection 170 a. Prior to amendment, subsection 170 a. read as follows: "a. Each license issued under section 103 or 104 and each construction permit issued under section 185 shall, and each license issued under section 53, 63, or 81 may, 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 Commission shall require in accordance with subsection 170 b. to cover public liability claims. Whenever such financial protection is required, it shall be a further condition of the license that the licensee execute and maintain an indemnification agreement in accordance with subsection 170 c. 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."

clear

defer

clear 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 financial protection: And provided further, That the standard deferred premium which may be charged following any nuclear incident under such a plan shall be not less than $2,000,000 nor more than $5,000,000 for each facility required to maintain the maximum amount of 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 arising out of the nuclear incident. Payment of any State premium taxes which may be applicable to any deferred premium provided for in this Act shall be the responsibility of the licensee and shall not be included in the retrospective premium established by the Commission. The Commission is authorized to establish a maximum amount which the aggregate deferred premiums charged for each facility within one calendar year may not exceed. The Commission may establish amounts less than the standard premium for individual facilities taking into account such factors as the facility's size, location, and other factors pertaining to the hazard. 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.46

46 Public Law 94-197 (89 Stat. 1111) (1975). Sec. 3, amended subsection 170 b. Prior to amendment, subsection 170 b. read as follows: "b. The amount of 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: (1) the cost and terms of private insurance, (2) the type, size, and location of the licensed activity and other factors pertaining to the hazard. and (3) the nature and purpose of the licensed activity: Provided, That for facilities designed for pro(Continued)

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