OF DEVELOPMENTS SUBSEQUENT TO THE 1975 EXTENSION. SECTION II OF

THE REPORT EXAMINES ISSUES THAT THE COMMISSION WAS REQUIRED BY

IN SECTION III OF THE REPORT, THE COMMISSION FOCUSES ON

OTHER ISSUES THAT ARE CONSIDERED RELEVANT TO THE PRICE-ANDERSON

SECTION IV OF THE REPORT CONTAINS THE COMMISSION'S

CONCLUSIONS AND RECOMMENDATIONS. I WILL BRIEFLY EXPLAIN OUR

MAJOR RECOMMENDATIONS.

(1) THE COMMISSION RECOMMENDS THAT THE CONGRESS EXTEND THE

PRICE-ANDERSON ACT. THE COMMISSION BELIEVES THAT THE ACT

PROVIDES A VALUABLE PUBLIC BENEFIT BY ESTABLISHING A SYSTEM

FOR THE PROMPT AND EQUITABLE SETTLEMENT OF PUBLIC LIABILITY

CLAIMS RESULTING FROM A NUCLEAR ACCIDENT. THE ACT SHOULD BE

EXTENDED TO ENSURE THAT THE SAME AMOUNT, TYPE AND TERMS OF

PUBLIC LIABILITY PROTECTION WILL BE PROVIDED FOR FUTURE

NUCLEAR POWER PLANTS AS WELL AS EXISTING NUCLEAR POWER

PLANTS.

(2) THE COMMISSION RECOMMENDS THAT THE CONGRESS AMEND THE PRICE

ANDERSON ACT TO SUBSTITUTE AN ANNUAL LIMITATION ON LIABILITY

FOR ACCIDENTS AT LARGE COMMERCIAL NUCLEAR POWER PLANTS FOR

THE PRESENT ABSOLUTE LIMITATION ON LIABILITY IN THE ACT.

INSTEAD OF THE COLLECTION OF A SINGLE RETROSPECTIVE PREMIUM

PER REACTOR FOR EACH ACCIDENT AS UNDER THE PRESENT SYSTEM,

RETROSPECTIVE PREMIUMS WOULD BE COLLECTED YEAR AFTER YEAR

UNTIL ALL OF THE PUBLIC LIABILITY CLAIMS RESULTING FROM AN

ACCIDENT ARE PAID. THIS APPROACH SHOULD ENSURE THE AVAIL

ABILITY OF SUFFICIENT INSURANCE FUNDS TO PAY CLAIMS EVEN FOR

HIGH-CONSEQUENCE ACCIDENTS WHILE AVOIDING THE IMPOSITION OF

POTENTIALLY CATASTROPHIC LOSSES ON UTILITIES OR SUPPLIERS TO

THE INDUSTRY. THIS SYSTEM WOULD ALSO PROVIDE A MECHANISM

FOR COMPENSATING LATENT INJURY CLAIMS, THEREBY ELIMINATING

THE NEED, AS UNDER THE PRESENT SYSTEM, TO RESERVE A PORTION

OF THE INITIAL INSURANCE FUNDS COLLECTED TO PAY SUCH CLAIMS

SHOULD THEY ARISE. THE ANNUAL LIMITATION ON LIABILITY

SHOULD APPLY TO EXISTING AS WELL AS FUTURE PLANTS.

(3)

THE COMMISSION RECOMMENDS THAT THE CONGRESS AMEND THE PRICE

ANDERSON ACT TO RAISE THE MAXIMUM RETROSPECTIVE PREMIUMS

THAT CAN BE CHARGED FROM THE PRESENT $5 MILLION PER REACTOR

PER INCIDENT PER YEAR TO $10 MILLION PER REACTOR PER

INCIDENT PER YEAR. AN INCREASE IN THE SIZE OF THE

RETROSPECTIVE PREMIUMS TO $10 MILLION WOULD SUBSTANTIALLY

INCREASE FUNDS AVAILABLE TO PAY PUBLIC LIABILITY CLAIMS

ARISING OUT OF AN ACCIDENT. MOREOVER, THIS FUND WOULD ALSO

BE ROUGHLY COMPARABLE TO THE AMOUNT OF INSURANCE COVERAGE

NOW PROVIDED FOR MOST LARGE COMMERCIAL NUCLEAR POWER PLANTS

TO PAY ON-SITE PROPERTY DAMAGE CLAIMS. AN INCREASE IN THE

RETROSPECTIVE PREMIUMS TO $10 MILLION WILL NOT, IN THE

COMMISSION'S VIEW, JEOPARDIZE THE FINANCIAL VIABILITY OF THE

PARTICIPATING UTILITIES.

(4) WHEN THE COMMISSION DETERMINES THAT A NUCLEAR INCIDENT IS AN

"EXTRAORDINARY NUCLEAR OCCURRENCE," WHICH IS DEFINED AS AN

OFF-SITE DISPERSAL OF NUCLEAR MATERIALS IN AMOUNTS CAUSING

RADIATION LEVELS THAT THE NRC DETERMINES HAS RESULTED, OR

WILL PROBABLY RESULT, IN SUBSTANTIAL DAMAGE TO PERSONS OR

PROPERTY OFF-SITE, THEN THE WAIVER OF DEFENSES PROVISION OF

THE PRICE-ANDERSON SYSTEM IS ACTIVATED. UNDER AN

ESSENTIALLY "NO-FAULT" RECOVERY SCHEME, CLAIMANTS WOULD NEED

ONLY PROVE (A) PERSONAL INJURY OR PROPERTY DAMAGE, (B)

MONETARY AMOUNT OF LOSS, AND (C) A VERIFIABLE LINK BETWEEN

THE INJURY OR DAMAGE AND THE RADIOACTIVE MATERIAL RELEASED.

COMMISSION NOTES THAT IT INTENDS TO REDEFINE, BY RULEMAKING,

THE CRITERIA FOR AN EXTRAORDINARY NUCLEAR OCCURRENCE.

(5) THE COMMISSION RECOMMENDS THAT THE CONGRESS EXTEND THE

STATUTE OF LIMITATIONS FOR FILING A PUBLIC LIABILITY CLAIM

ARISING FROM A NUCLEAR ACCIDENT FROM 20 TO 30 YEARS. THIS

CHANGE SHOULD PROVIDE GREATER ASSURANCE THAT LATENT INJURIES

CAUSED BY A NUCLEAR ACCIDENT ARE PROVIDED PROTECTION UNDER