House Approves Limited Liability Bill for Nuclear Industry
By Michelle Logsdon - November 30, 2001Nuclear power plants are one step closer to receiving an extension on a law that limits the liability of the nuclear industry in case of a major nuclear accident or a terrorist attack on a power plant.
The House overwhelmingly approved, Nov. 27, legislation to lengthen the time frame of the Price-Anderson Act. Due to expire next August, the Act requires each utility to purchase the maximum coverage available from private insurance companies—$200 million per reactor. It also caps the amount of damages payable by the nuclear industry for one nuclear accident at $9.43 billion. The government would pay any outstanding costs. The bill would extend the indemnification to August 2017.
The US has 103 nuclear power plants. Two of them are located in California. Diablo Canyon is in San Luis Obispo County and San Onofre sits in the Southern end of the state near San Clemente.
Bill Roake, Pacific Gas and Electric Company’s Diablo Canyon news representative told adjustercom.com the extension is a logical step, especially now that national security is on the forefront of everyone’s mind.
Legislators did add new provisions to the Act extension due to the threat of terrorist attacks on nuclear power plants. The Nuclear Regulatory Commission (NRC) is required to review its security procedures for all plants—a move the NRC has already begun.
Diablo Canyon has been inspected by the NRC since the Sept. 11 attacks and Roake said their security forces are probably the tightest in the country.
Critics of the Price-Anderson Act said it lets nuclear power plant operators off the hook. Individuals who signed a petition against the law said, "The Price-Anderson Act excuses nuclear generators from all but a tiny fraction of the damages which could result from a major nuclear accident."
Supporters of the indemnification extension said taxpayers have not had to pay a cent for any of the 206 nuclear accidents that have occurred since the law was enacted in 1957. Rep. Heather Wilson, R-N.M. told the Associated Press, "The claims, even those arising from the Three Mile Island accident were covered by private insurance because they fell far below the trigger for government payments."
They also noted that it would be practically impossible for the nuclear industry to afford insurance or survive liability damages in today’s unstable environment without the help.
The new Price-Anderson Act now faces review by the Senate. | 
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