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AMENDMENTS TO THE PRICE-

ANDERSON ACT OF 1954

HEARING

BEFORE THE

SUBCOMMITTEE ON ENERGY AND THE ENVIRONMENT

OF THE

COMMITTEE ON
INTERIOR AND INSULAR AFFAIRS
HOUSE OF REPRESENTATIVES

NINETY-EIGHTH CONGRESS

SECOND SESSION

ON

H.R. 421
TO AMEND THE ATOMIC ENERGY ACT OF 1954 TO MODIFY CERTAIN STATUTORY LIMITATIONS ON
THE AMOUNT OF FINANCIAL PROTECTION REQUIRED WITH RESPECT TO NUCLEAR INCIDENTS,
TO REMOVE THE STATUTORY LIMITATIONS ON THE AGGREGATE LIABILITY FOR A SINGLE NU-
CLEAR INCIDENT, TO LIMIT THE FINANCIAL OBLIGATIONS OF THE UNITED STATES WITH RE-
SPECT TO SUCH INCIDENTS, AND FOR OTHER PURPOSES

H.R. 3277
TO IMPROVE THE REGULATION OF CIVILIAN NUCLEAR POWERPLANTS AND TO PROVIDE

ECONOMIC INCENTIVES FOR THEIR SAFE OPERATION AND FOR OTHER PURPOSES

AND THE

NUCLEAR REGULATORY COMMISSION

AND THE

DEPARTMENT OF ENERGY

REPORTS ON

THE PRICE-ANDERSON ACT OF 1954

HEARING HELD IN WASHINGTON, DC

JUNE 11, 1984

Serial No. 98-32

Printed for the use of the
Committee on Interior and Insular Affairs

U.S. GOVERNMENT PRINTING OFFICE

COMMITTEE ON INTERIOR AND INSULAR AFFAIRS

HOUSE OF REPRESENTATIVES

MORRIS K. UDALL, Arizona, Chairman ABRAHAM KAZEN, JR., Texas

MANUEL LUJAN, JR., New Mexico JOHN F. SEIBERLING, Ohio

Ranking Republican Member ANTONIO BORJA WON PAT, Guam

DON YOUNG, Alaska JAMES WEAVER, Oregon

ROBERT J. LAGOMARSINO, California PHILIP R. SHARP, Indiana

DAN MARRIOTT, Utah EDWARD J. MARKEY, Massachusetts

RON MARLENEE, Montana BALTASAR CORRADA, Puerto Rico

DICK CHENEY, Wyoming AUSTIN J. MURPHY, Pennsylvania

CHARLES PASHAYAN, JR., California NICK JOE RAHALL II, West Virginia LARRY CRAIG, Idaho BRUCE F. VENTO, Minnesota

HANK BROWN, Colorado JERRY HUCKABY, Louisiana

DENNY SMITH, Oregon JERRY M. PATTERSON, California

JAMES V. HANSEN, Utah RAY KOGOVSEK, Colorado

BILL EMERSON, Missouri DALE E. KILDEE, Michigan

JOHN MCCAIN, Arizona
TONY COELHO, California

BARBARA VUCANOVICH, Nevada
BEVERLY B. BYRON, Maryland
RON DE LUGO, Virgin Islands
SAM GEJDENSON, Connecticut
WILLIAM PATMAN, Texas
PETER H. KOSTMAYER, Pennsylvania
JIM MOODY, Wisconsin
ALAN B. MOLLOHAN, West Virginia
JAMES MCCLURE CLARKE, North Carolina
JAMES F. McNULTY, JR., Arizona
RICHARD H. LEHMAN, California
SALA BURTON, California
BILI RICHARDSON, New Mexico

STANLEY ScoviLLE, Staff Director and Counsel
Roy JONES, Associate Staff Director and Counsel

LEE McELVAIN, General Counsel

HENRY MYERS, Science Adviser
TIMOTHY W. GLIDDEN, Republican Counsel

SUBCOMMITTEE ON ENERGY AND THE ENVIRONMENT

MORRIS K. UDALL, Arizona, Chairman JOHN F. SEIBERLING, Ohio

MANUEL LUJAN, JR., New Mexico PHILIP R. SHARP, Indiana

DENNY SMITH, Oregon EDWARD J. MARKEY, Massachusetts

DAN MARRIOTT, Utah AUSTIN, J. MURPHY, Pennsylvania

JOHN MCCAIN, Arizona NICK JOE RAHALL II, West Virginia

BARBARA VUCANOVICH, Nevada BRUCE F. VENTO, Minnesota

HANK BROWN, Colorado JERRY HUCKABY, Louisiana

LARRY CRAIG, Idaho JERRY M. PATTERSON, California

CHARLES PASHAYAN, JR., California
SAM GEJDENSON, Connecticut
WILLIAM PATMAN, Texas
PETER H. KOSTMAYER, Pennsylvania
JIM MOODY, Wisconsin
ALAN B. MOLLOHAN, West Virginia
JAMES MCCLURE CLARKE, North Carolina
BILL RICHARDSON, New Mexico

JAY SIMPSON, Counsel
THOMAS WEIMER, Republican Nuclear Science Adviser

Note: The first listed minority member is counterpart to the subcommittee

chairman.

CONTENTS

MONDAY, JUNE 11, 1984

Statements:

Brewer, Hon, Shelby T., Assistant Secretary for Nuclear Energy, Depart-

ment of Energy

31, 130

Panel from the U.S. Nuclear Regulatory Commission consisting of:

Hon. Nunzio J. Palladino, Chairman ..

15, 106

Hon. James K. Asselstine, Commissioner

18, 122

Hon. Victor Gilinsky, Commissioner.

15

Hon. Thomas M. Roberts, Commissioner

20

Hon. Frederick M. Bernthal, Commissioner

21

Hon. Jerome Saltzman, Assistant Director, Office of State Programs... 24

Panel consisting of:

John Bigelow, deputy attorney general of New Mexico.........

41

Dick Nelson, member, Washington State Legislature

44, 172

Panel consisting of:

George Gleason, executive vice president, American Nuclear Energy

Council .....

52

M.G. Johnson, special counsel with Bechtel Power Corp

58, 324

Panel consisting of:

Richard A. Schmalz, counsel to American Nuclear Insurers and

Mutual Atomic Energy Liability Underwriters..

65, 329

Joseph Marrone, vice president and general counsel, American Nu-

clear Insurers..

69, 515

Michael J. O'Connell, manager, Mutual Atomic Energy Liability Un-
derwriters..

65
William R. Metzgar, director, Aetna Life and Casualty Insurance Co.. 65
Panel consisting of:

Jill Lancelot, director of congressional affairs, National Taxpayers

Union .....

77, 530

Keiki Kehoe, director, nuclear accountability and insurance project,

Environmental Policy Institute...

79, 537

Ron Landsman, general counsel, National Insurance Consumer

Organization ....

83, 616

Panel consisting of:

Laurie Rockett, former associate director of the legislative drafting

research fund of Columbia University ...

91, 630

William C. Wood, assistant professor of economics, University of

Virginia

96, 654

Barry P. Brownstein, associate professor of economics, University of

Baltimore.

98, 665

MONDAY, JUNE 11, 1984
Additional material submitted for the hearing record from:
Hon. Morris K. Udall, a U.S. Representative from the State of Arizona; and

chairman, Committee on Interior and Insular Affairs: Prepared statement ...

103

[blocks in formation]

U.S. Nuclear Regulatory Commission:

1. Prepared statement of Hon. Nunzio J. Palladino, Chairman....

2. Remarks of Hon. James K. Asselstine, Commissioner, before the Nucle-

ar Power Assembly, May 8, 1984..

Letter from Hon. Richard H. Bryan, Governor, State of Nevada, to Hon.

Barbara Vucanovich, a U.S. Representative from the State of Nevada; and

member, Committee on Interior and Insular Affairs, dated June 7, 1984,

concerning the application of the Price-Anderson Act to high-level nuclear

waste repositories...

Hon. Shelby T. Brewer, Assistant Secretary for Nuclear Energy, U.S. Depart-

ment of Energy: Prepared statement...

State of New Mexico:

1. Prepared statement of Paul Bardacke, attorney general...

2. Paper entitled “An Analysis of the Waste Isolation Pilot Plant and the

Price-Anderson Act",

Dick Nelson, member, Washington State Legislature: Prepared statement ........

Hon. Bruce F. Vento, a U.S. Representative from the State of Minnesota; and

member, Committee on Interior and Insular Affairs: Article from the Wash-

ington Post, December 18, 1983, entitled “Proposal Would Erase Utilities

Liability Limit in A-Plant Accidents”.

American Nuclear Energy Council; Edison Electric Institute; and the Atomic

Industrial Forum:

1. Prepared statement of Steve C. Griffith, Jr., spokesman...

2. Study entitled “Financial Protection Against Nuclear Hazards: Thirty

Years' Experience Under The Price-Anderson Act”.

3. Article entitled “The Price-Anderson Act: Questions and Answers",

from AIF Background Info, September 1983...

4. Letter from National Rural Electric Cooperative Association, to chair-

man Udall, dated June 4, 1984, supporting the position taken on

extension of The Price-Anderson Act by the American Nuclear

Energy Council, and the Atomic Industrial Forum

Price-Anderson Contractors policy study: Prepared statement of M.G. John-

son, spokesman

American Nuclear Insurers and Mutual Atomic Energy Liability Underwrit-

1. Prepared statement of Richard A. Schmalz, counsel ..

2. Report entitled "The Nuclear Liability Claims Experience of the Nucle-

ar Insurance Pools”.

3. Report entitled “The Effects of lonizing Radiation on Human Health".

4. Report entitled “Proof of Causation Through Expert Opinion Evidence

in Low-Level Radiation Cases"

5. Report entitled “Review of Nuclear Liability Compensation Systems

Applicable to Reactors Outside the United States",

6. Report entitled “A Critical Review of the Probability of Causation

Method”.

7. Letter from Joseph Marrone, vice president and general counsel, Amer-

ican Nuclear Insurers, to Chairman Udall, dated July 24, 1984, trans-

mitting additional information requested at the hearing on Price-

Anderson issues...

National Taxpayers Union: Prepared statement of Jill Lancelot, director of

congressional affairs ...

Environmental Policy Institute, et al.:

1. Prepared statement of Keiki Kehoe, spokeswoman

2. Article from University of Michigan, Journal of Law Reform entitled

"Abolishing the 'Extraordinary Nuclear Occurrence' Threshold of the

Price-Anderson Act".

3. Summary of the Nuclear Regulatory Commission's Report to Congress

entitled “The Price-Anderson Act: The Third Decade

4. Article from the New York Times, July 20, 1983, entitled "A-Plants:

Insurable Risks?",

5. Document entitled “Unavailable At Any Price; Nuclear Insurance"

National Insurance Consumer Organization: Prepared statement of Ron M.

Landsman, counsel...

Laurie Rockett, former associate director of the legislative drafting research

fund, University of Columbia: Prepared statement...

William C. Wood, assistant professor of economics, University of Virginia:

Page

665

669

Barry P. Brownstein, associate professor of economics, University of Balti-
more:

1. Prepared statement
2. Paper entitled “The Price-Anderson Act: Is It Consistent with a Sound

Energy Policy”
Hon. Edward J. Markey, a U.S. Representative from the State of Massachu-
setts; and member, Committee on Interior and Insular Affairs:
1. Report from the Library of Congress entitled “Liability For Nuclear

Damages in Various Foreign Countries”, 2. Report from the Library of Congress entitled “Industry-Protective Lim

itations on Liability in Federal Statutes and Treaties”. Hon. Ted Weiss, a U.S. Representative from the State of New York: Prepared

statement

690

732

745

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