[Federal Register Volume 74, Number 197 (Wednesday, October 14, 2009)]
[Notices]
[Page 52793]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-24718]
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DEPARTMENT OF ENERGY
Adjusted Indemnification Amount
AGENCY: Department of Energy.
ACTION: Notice of adjusted indemnification amount.
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SUMMARY: The Department of Energy (DOE) is announcing the adjusted
amount of indemnification provided under subsection 170d. of the Atomic
Energy Act of 1954 (AEA), 42 U.S.C. 2210d., commonly known as the
Price-Anderson Act, consistent with section 607 of the Energy Policy
Act of 2005, Public Law 109-58 (EPAct 2005). Section 607 (``Inflation
Adjustment'') of EPAct 2005 amended subsection 170t. of the AEA by
requiring the adjustment of the indemnification amount not less than
once during each 5-year period following July 1, 2003, in accordance
with the aggregate percentage change in the Consumer Price Index (CPI)
since that date. This notice announces $11.961 billion as the
inflation-adjusted amount based on the aggregate percentage change in
the CPI during the initial 5-year period.
DATES: This action is effective October 14, 2009.
FOR FURTHER INFORMATION CONTACT: John S. Boulden III, Acting Director
(HS-40), Office of Enforcement, Office of Health, Safety and Security,
U.S. Department of Energy, 19901 Germantown Road, Germantown, Maryland
20874, (301) 903-2178; or Sophia Angelini, Attorney Advisor (GC-52),
Office of the General Counsel, U.S. Department of Energy, 1000
Independence Ave., SW., Washington, DC 20585, (202) 586-6975.
SUPPLEMENTARY INFORMATION:
The Price-Anderson Act, section 170 of the AEA (42 U.S.C. 2210),
establishes a system of financial protection for persons who may be
liable for and persons who may be injured by a ``nuclear incident,'' as
defined at section 11q. of the AEA (42 U.S.C. 2014q.). The Price-
Anderson Act is administered by DOE with respect to the nuclear
activities of DOE contractors acting on its behalf. Subsection 170d.
provides that the Secretary of Energy shall enter into agreements of
indemnification with any person who may conduct activities under a
contract with DOE that involve the risk of public liability and that
are not subject to the financial protection requirements of the Nuclear
Regulatory Commission. DOE's Price-Anderson Act indemnification
contract provisions are codified in the Department of Energy
Acquisition Regulation (DEAR), which sets forth a standard nuclear
indemnification clause, the Nuclear Hazard Indemnity Agreement at 48
CFR 952.250-70, that is incorporated into all DOE contracts and
subcontracts involving source, special nuclear, or by-product material.
The Price-Anderson Amendments Act of 2005 (PAAA 2005), enacted as
part of EPAct 2005, sections 601 through 610, altered the indemnity
provisions in several ways. Specifically, the PAAA 2005 altered the
amount of the indemnification by: (1) Specifying $10 billion as the
amount of the indemnification for nuclear incidents within the United
States resulting from contractual activities on behalf of DOE (section
604); (2) directing the adjustment of this indemnification amount not
less than once during each five-year period in accordance with the
aggregate percentage change in the CPI (section 607); and (3)
increasing the indemnification amount for nuclear incidents outside the
United States from $100 million to $500 million (section 605).
With regard to the inflation adjustment for indemnification, the
AEA subsection 170t. was amended by adding a new provision requiring
the adjustment of ``the amount of indemnification provided under an
agreement of indemnification under subsection d. not less than once
during each 5-year period following July 1, 2003, in accordance with
the aggregate percentage change in the Consumer Price Index since--(A)
that date, in the case of the first adjustment under this paragraph; or
(B) the previous adjustment under this paragraph.'' Under the AEA
subsection 170t.(3), the term ``Consumer Price Index'' is defined to
mean the CPI for all urban consumers published by the Secretary of
Labor. The CPI in July 2003 was 183.9. In July 2008, the CPI was
219.964. This represents an increase of approximately 19.61%.
Application of this increase to the initial $10 billion DOE
indemnification amount results in an inflation-adjusted indemnification
amount of $11.961 billion.
The inflation adjustment under AEA subsection 170t. applies only to
a nuclear incident within the United States. Accordingly, the
indemnification amount for a nuclear incident outside the United States
continues to be $500 million.
The next inflation adjustment will be based on the incremental
change in the CPI between July 1, 2008 and the date of the adjustment,
which will be no later than July 1, 2013.
This notice of indemnification inflation adjustment is a ``rule''
as defined in the Administrative Procedure Act (APA) (5 U.S.C. 551(4)).
However, the APA (5 USC 553(b)(B)) does not require an agency to use
the public notice and comment process ``when the agency for good cause
finds (and incorporates the finding and a brief statement of reasons
therefore in the rules issued) that notice and public procedure thereon
are impracticable, unnecessary, or contrary to the public interest.''
In this instance, DOE has concluded that solicitation of public comment
is unnecessary. Congress has required DOE to adjust the amount of
indemnification provided under an agreement of indemnification under
section 170d. to reflect inflation in the initial and each subsequent
5-year period following July 1, 2003, and provided no discretion
regarding the substance of the adjustment process. DOE is required only
to perform a ministerial computation to determine the relevant
inflation adjustment. On the same basis, DOE finds good cause, pursuant
to 5 USC 553(d)(3) to waive the requirement for a 30-day delay in the
effective date for this rule. As such, this rule is effective October
14, 2009.
DOE has determined that this notice of indemnification inflation
adjustment is the type of action that does not individually or
cumulatively have a significant impact on the human environment as set
forth in DOE's regulations implementing the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.). Specifically, the rule is
covered under the categorical exclusion in paragraph A6 of Appendix A
to subpart D, 10 CFR part 1021, which applies to rulemakings that are
strictly procedural. Accordingly, neither an environmental assessment
nor an environmental impact statement is required.
Dated: Issued in Washington, DC, on September 22, 2009.
Steven Chu,
Secretary of Energy.
[FR Doc. E9-24718 Filed 10-13-09; 8:45 am]
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