Price-Anderson Nuclear Industries Indemnity Act
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| Long title | An Act to amend the Atomic Energy Act of 1954, as amended, and for other purposes. |
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| Nicknames | Price-Anderson Act |
| Enacted by | the 85th United States Congress |
| Effective | September 2, 1957 |
| Citations | |
| Public law | 85-256 |
| Statutes at Large | 71 Stat. 576 |
| Codification | |
| Titles amended | 42 U.S.C.: Public Health and Social Welfare |
| U.S.C. sections created | 42 U.S.C. ch. 23 |
| Legislative history | |
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The Price-Anderson Nuclear Industries Indemnity Act (commonly called the Price-Anderson Act) is a United States federal law, first passed in 1957 and since renewed several times, which governs liability-related issues for all non-military nuclear facilities constructed in the United States before 2026. The main purpose of the Act is to partially compensate the nuclear industry against liability claims arising from nuclear incidents while still ensuring compensation coverage for the general public. The Act establishes a no fault insurance-type system in which the first approximately $12.6 billion (as of 2011) is industry-funded as described in the Act. Any claims above the $12.6 billion would be covered by a Congressional mandate to retroactively increase nuclear utility liability or would be covered by the federal government. At the time of the Act's passing, it was considered necessary as an incentive for the private production of nuclear power — this was because electric utilities viewed the available liability coverage (only $60 million) as inadequate.
In 1978, the Act survived a constitutional challenge in the Supreme Court case Duke Power Co. v. Carolina Environmental Study Group (see below). The Act was last renewed in 2005 for a 20-year period.
Power reactor licensees are required by the act to obtain the maximum amount of insurance against nuclear related incidents which is available in the insurance market (as of 2011[update], $375 million per plant). Any monetary claims that fall within this maximum amount are paid by the insurer(s). The Price-Anderson fund, which is financed by the reactor companies themselves, is then used to make up the difference. As of September, 2013, each reactor company is obliged to contribute up to $121,255,000 per reactor in the event of an accident with claims that exceed the $375 million insurance limit. As of 2013[update], the maximum amount of the fund is approximately $12.61 billion ($121,255,000 X 104 reactors) if all of the reactor companies were required to pay their full obligation to the fund. This fund is not paid into unless an accident occurs. However, fund administrators are required to have contingency plans in place to raise funds using loans to the fund, so that claimants may be paid as soon as possible. Actual payments by companies in the event of an accident are capped at $18,963,000 per year until either a claim has been met, or their maximum individual liability (the $121,255,000 maximum) has been reached.
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