42 U.S.C. § 2209 — Subsidies

Page 5496 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 2209 guided by the policy of not making payments in excess of the taxes which would have been pay- able for such property in the condition in which it was acquired, except in cases where special burdens have been cast upon the State or local government by activities of the Commission, the Manhattan Engineer District or their agents. In any such case, any benefit accruing to the State or local government by reason of such activities shall be considered in determining the amount of the payment. (Aug. 1, 1946, ch. 724, title I, § 168, as added Aug. 30, 1954, ch. 1073, § 1, 68 Stat. 952; renumbered title I, Pub. L. 102–486, title IX, § 902(a)(8), Oct. 24, 1992, 106 Stat. 2944.) Editorial Notes PRIOR PROVISIONS Provisions similar to this section were contained in section 1809(b) of this title, prior to the general amend- ment and renumbering of act Aug. 1, 1946, by act Aug. 30, 1954. § 2209. Subsidies No funds of the Commission shall be employed in the construction or operation of facilities li- censed under section 2133 or 2134 of this title ex- cept under contract or other arrangement en- tered into pursuant to section 2051 of this title. (Aug. 1, 1946, ch. 724, title I, § 169, as added Aug. 30, 1954, ch. 1073, § 1, 68 Stat. 952; renumbered title I, Pub. L. 102–486, title IX, § 902(a)(8), Oct. 24, 1992, 106 Stat. 2944.) § 2210. Indemnification and limitation of liability (a) Requirement of financial protection for li- censees Each license issued under section 2133 or 2134 of this title and each construction permit issued under section 2235 of this title shall, and each li- cense issued under section 2073, 2093, or 2111 of this title may, for the public purposes cited in section 2012(i) of this title, have as a condition of the license a requirement that the licensee have and maintain financial protection of such type and in such amounts as the Nuclear Regu- latory Commission (in this section referred to as the ‘‘Commission’’) in the exercise of its licens- ing and regulatory authority and responsibility shall require in accordance with subsection (b) to cover public liability claims. Whenever such financial protection is required, it may be a fur- ther condition of the license that the licensee execute and maintain an indemnification agree- ment in accordance with subsection (c). The Commission may require, as a further condition of issuing a license, that an applicant waive any immunity from public liability conferred by Federal or State law. (b) Amount and type of financial protection for licensees (1) The amount of primary financial protec- tion required shall be the amount of liability in- surance available from private sources, except that the Commission may establish a lesser amount on the basis of criteria set forth in writ- ing, which it may revise from time to time, tak- ing into consideration such factors as the fol- lowing: (A) the cost and terms of private insur- ance, (B) the type, size, and location of the li- censed activity and other factors pertaining to the hazard, and (C) the nature and purpose of the licensed activity: Provided, That for facili- ties designed for producing substantial amounts of electricity and having a rated capacity of 100,000 electrical kilowatts or more, the amount of primary financial protection required shall be the maximum amount available at reasonable cost and on reasonable terms from private sources (excluding the amount of private liabil- ity insurance available under the industry retro- spective rating plan required in this subsection). Such primary financial protection may include private insurance, private contractual indem- nities, self-insurance, other proof of financial re- sponsibility, or a combination of such measures and shall be subject to such terms and condi- tions as the Commission may, by rule, regula- tion, or order, prescribe. The Commission shall require licensees that are required to have and maintain primary financial protection equal to the maximum amount of liability insurance available from private sources to maintain, in addition to such primary financial protection, private liability insurance available under an in- dustry retrospective rating plan providing for premium charges deferred in whole or major part until public liability from a nuclear inci- dent exceeds or appears likely to exceed the level of the primary financial protection re- quired of the licensee involved in the nuclear in- cident: Provided, That such insurance is avail- able to, and required of, all of the licensees of such facilities without regard to the manner in which they obtain other types or amounts of such primary financial protection: And provided further, That the maximum amount of the standard deferred premium that may be charged a licensee following any nuclear incident under such a plan shall not be more than $95,800,000 (subject to adjustment for inflation under sub- section (t)), but not more than $15,000,000 in any 1 year (subject to adjustment for inflation under subsection (t)), for each facility for which such licensee is required to maintain the maximum amount of primary financial protection: And provided further, That the amount which may be charged a licensee following any nuclear inci- dent shall not exceed the licensee’s pro rata share of the aggregate public liability claims and costs (excluding legal costs subject to sub- section (o)(1)(D), payment of which has not been authorized under such subsection) arising out of the nuclear incident. Payment of any State pre- mium taxes which may be applicable to any de- ferred premium provided for in this chapter shall be the responsibility of the licensee and shall not be included in the retrospective pre- mium established by the Commission. (2)(A) The Commission may, on a case by case basis, assess annual deferred premium amounts less than the standard annual deferred premium amount assessed under paragraph (1)— (i) for any facility, if more than one nuclear incident occurs in any one calendar year; or (ii) for any licensee licensed to operate more than one facility, if the Commission deter- mines that the financial impact of assessing the standard annual deferred premium amount