Statement of Administration Policy: H.R. 1414 - Price-Anderson Nuclear Liability Insurance System

(Senate)
(Reps. Udall (D) Arizona and Sharp (D) Indiana)

The administration strongly supports reauthorization of the Price-Anderson Act as enacted by the House in H.R. 1414. Renewal of Price-Anderson is critical to the future of nuclear power in the United States and to federally-sponsored nuclear research and national security activities. Nevertheless, the President's senior advisors would recommend disapproval of any Price-Anderson legislation if it were to contain any of the objectionable provisions described below.

The unacceptable provisions would:

— permit suits against the Federal Government, under the same terms and conditions as would apply to a contractor (i.e., no Federal Tort Claims Act defenses). Such a provision could be construed as a waiver of sovereign immunity and as such would open the Federal Government to vastly expanded liability, and unjustifiably grant preferential treatment to one class of plaintiff seeking damages from the United States;

— allow the Department of Energy to impose fines on its contractors for violation of Department of Energy safety regulations; or grant the Federal Government subrogation rights, thus allowing it to sue contractors who had caused an accident. Inclusion of penalty or subrogation authority is objectionable because it would strongly discourage experienced contractors from commencing or continuing their work with the Department; and

— provide for unlimited liability by making the U.S. Treasury the final guarantor of damage compensation that exceeds the approximately $7 billion liability cap.