sciously aware of the concern expressed by some of our citizens regarding the possible dangers involved in the operation of nuclear powerplants near some of our major cities. It was the view of some of the members that some of these potential dangers have tended to be overstated, and for this reason the committee felt it desirable to request last year that a comprehensive study be made by experts in the field to provide a firmer basis for our assumptions. Although I have not had time as yet to read the report in detail, I have gathered from quick perusal of its contents that the great majority of expert opinion feels that the chances of a major accident in nuclear powerplants are extremely remote. This is indeed encouraging news, as we are about to launch on a new era of nuclear-power generation. Closely allied to this problem is the question of public availability of reactor-safety reports and the matter of how much or what kind of research work is being done to minimize chances of accident. These are both matters which deserve major attention and ones which I hope will receive considerable discussion during the course of the hearings. Today we are starting off the hearings with a presentation by the Atomic Energy Commission. Industrial and other witnesses will follow, beginning tomorrow and extending through Thursday morning. At this point I would like to insert in the record the committee's letters of March 12 and 20 to the Commission regarding the Commission's presentation at the hearings, a copy of the committee's announcement of the hearings, and a copy of S. 715 (H. R. 1981) as reported out by the committee last session, including the committee amendments. I would also like to insert a copy of S. 1684 (H. R. 6604) regarding the Advisory Committee on Reactor Safeguards, a copy of the statement made by Senator Anderson, and a letter from the executive director of the committee to witnesses requesting their comments on S. 1684. (The information referred to follows:) [No. 75, March 12, 1957, for immediate release] From the Office of the Joint Committee on Atomic Energy. The Joint Committee plans to hold public hearings the week of March 25 on proposed legislation providing for governmental indemnity against reactor hazards, it was announced today by the Committee Chairman Carl T. Durham, Democrat, of North Carolina. The committee is inviting representatives of the insurance industry, the plant operators, equipment manufacturers, and other interested organizations and persons to present their views on the proposed legislation and related matters. In announcing the scheduled hearings, Representative Durham stated: "Last session, the Joint Committee held extensive hearings on the proposed indemnity legislation and reported out a committee bill after lengthy discussion. I think the most productive approach this session would be to avoid discussing matters already covered adequately in previous hearings. Thus, we will try to confine discussion to changes in the proposed legislation which people believe are necessary, and to develop information not available during the past hearings. "In the latter connection, the committee would like to receive information regarding private insurance rates and coverage on reactor projects which will be available to American industry, educational institutions, and research organizations. The committee also wishes to receive more definitive information on the probabilities of reactor accidents and possible extent of damage, including a report on this subject requested from the Commission on July 6, 1956. Other matters relating to research on reactor hazards and the question of public availability of reactor-safety reports will be considered." It is anticipated that the Atomic Energy Commission will lead off the hearings and that industrial and other witnesses will follow on successive days. The hearings should be about a week in duration, depending upon the number of witnesses who wish to testify. The question of radiation injuries to workers involving workmen's compensation, and the problem of radioactive fallout, will be the subject of separate hearings by the committee, probably the first part of May. In view of the committee's heavy schedule of hearings, it is hoped that as many as possible of those who wish to testify at the indemnity hearings will submit statements for the record, and that only those who believe it necessary to appear personally will do so. Further information may be obtained by con tacting the committee staff in room F-88, the Capitol. Mr. LEWIS L. STRAUSS, CONGRESS OF THE UNITED STATES, JOINT COMMITTEE ON ATOMIC ENERGY, Chairman, Atomic Energy Commission, Washington, D. C. DEAR MR. STRAUSS: The Joint Committee plans to hold public hearings beginning March 25 on proposed legislation providing for governmental indemnity against reactor hazards. Representatives of the insurance industry, the plant operators, equipment manufacturers, and other interested organizations and persons are being invited to present their views on the proposed legislation and related matters. A copy of our press announcement is attached. It would be appreciated if you would make the necessary arrangements to have representatives of the Commission lead off the testimony on Monday, March 25. Industrial and other witnesses will follow on successive days. I anticipate that the hearings will be about a week in duration, depending upon the number of witnesses who wish to testify and on the time required in questions and discussion. With respect to our request for a study on potential damage which could be caused by reactor accidents, we have noted that you indicate in your March 1 letter that it will not be possible to have the report ready by March 15, but that you will make every effort to have it ready by the earliest possible date thereafter. It would be extremely desirable, if not a necessity, that we have the report by March 22 in order to permit staff review over the weekend prior to the March 25 hearings.1 I think it would be helpful, as in the case of 202 hearings, if our staff could get together soon to discuss arrangements for the hearings and the general scope of the Commission's testimony. Sincerely yours, CARL T. DURHAM, Chairman. [S. 715, 85th Cong., 1st sess.] A BILL To amend the Atomic Energy Act of 1954, as amended, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 2 of the Atomic Energy Act of 1954, as amended, is amended by adding a new subsection to read as follows: "i. In order to protect the public and to encourage the development of the atomic energy industry, in the interest of the general welfare and of the common defense and security, the United States may make funds available for a portion of the damages suffered by the public from nuclear incidents, and may limit the liability of those persons liable for such losses." SEC. 2. Subsection 53 e. (8) of the Atomic Energy Act of 1954, as amended, is amended to read as follows: "(8) except to this extent that the indemnification and limitation of liability provisions of section 170 apply, the licensee will hold the United States 1 The Joint Committee is planning to reproduce the Report as a Committee Print. and the Commission harmless from any damages resulting from the use or possession of special nuclear material by the licensee." SEC. 3. Section 11 of the Atomic Energy Act of 1954, as amended, is amended by adding thereto the following new subsections, and redesignating the other subsections accordingly: "j. The term 'financial protection' means the ability to respond in damages for public liability." "n. The term 'licensed activity' means an activity licensed pursuant to this Act." "u. The term 'public liability' means any legal liability arising out of or resulting from a nuclear incident, except claims under State or Federal Workmen's Compensation Acts of employees of persons indemnified who are employed in connection with the activity where the nuclear incident occurs, and except claims for damage to property of persons indemnified which is located at the site of and used in connection with the activity where the nuclear incident occurs." "o. The term 'nuclear incident' means any occurrence within the United States causing bodily injury or death, or loss of or damage to property, or for loss of use of property arising out of or resulting from the radioactive, toxic, explosive, or other hazardous properties of source, special nuclear, or byproduct material." "r. The term 'person indemnified' means the person with whom an indemnity agreement is executed and any other person who may be liable." SEC. 4. The Atomic Energy Act of 1954, as amended, is amended by adding thereto a new section, with the appropriate amendment to the table of contents: "SEC. 170. INDEMNIFICATION AND LIMITATION OF LIABILITY.— "a. Each license issued under section 103 or 104 and each construction permit issued under section 185 shall, and each license issued under sections 53, 63, or 81 may, have as a condition of the license a requirement that the licensee have financial protection of such type and in such amounts as the Commission shall require in accordance with subsection 170 b. to cover public liability claims. Such financial protection may include private insurance, private contractual indemnities, self insurance, other proof of financial responsibility, or a combination of such measures. Whenever such financial protection is required, it shall be a further condition of the license that the licensee execute and maintain an indemnification agreement in accordance with subsection 170 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. The amount of financial protection required shall not exceed the amount of liability insurance available from private sources. The Commission shall establish criteria in writing for the determination of the amount of financial protection to be required, taking into consideration such factors as the following: (1) the cost and terms of private insurance, (2) the type, size, and location of the licensed activity and other factors pertaining to hazard, and (3) the nature and purpose of the licensed activity. "c. The Commission shall, with respect to licenses issued between August 30, 1954, and August 1, 1966, for which it requires financial protection, agree to indemnify and hold harmless the licensee and other persons indemnified (other than a Government agency), as their interest may appear, from public liability arising from nuclear incidents which is in excess of the amount of financial protection required in the amount of $500,000,000 in the aggregate for all persons indemnified in connection with each nuclear incident. Such a contract of indemnification shall cover public liability arising out of or in connection with the licensed activity. "d. In addition to any other authority the Commission may have, the Commission is authorized until August 1, 1966, to enter into agreements of indemnification with its contractors for the construction or operation of production or utilization facilities or research and development plants for the benefit of the United States. In such agreements of indemnification the Commission may require its contractor to provide financial protection of such a type and in such amounts as the Commission shall determine to be appropriate to cover public liability arising out of or in connection with the contractual activity, and shall indemnify the persons indemnified against such claims above the amount of the financial protection required, in the amount of $500,000,000 in the aggregate for all persons indemnified in connection with such contract and for each nuclear incident. The provisions of this subsection may be applicable to lump sum as well as cost type contracts and to contracts and projects, financed in whole or in part by the Commission. "e. The aggregate liability for a single nuclear incident of persons indemnified shall not exceed the sum of $500,000,000 together with the amount of financial protection required and any other sums which may be made available by the Congress as additional indemnification. The Commission or any person indemnified may apply to the appropriate district court of the United States having venue in bankruptcy matters over the location of the nuclear incident, and upon a showing that the public liability from a single nuclear incident will probably exceed the limit of liability imposed by this section shall be entitled to such orders as may be appropriate for enforcement of the provisions of this section, including an order limiting the liability of the persons indemnified, orders staying the payment of claims and the execution of court judgments, orders apportioning the payments to be made to claimants, orders permitting partial payments to be made before final determination of the total claims, and an order setting aside a part of the funds available for possible latent injuries not discovered until a later time. "f. The Commission is authorized to collect a fee from all persons with whom an indemnification agreement is executed under this section. This fee shall be $30 per year per thousand kilowatts of thermal energy capacity for facilities licensed under section 103. For facilities licensed under section 104, and for construction permits under section 185, the Commission is authorized to reduce the fee set forth above. The Commission shall establish criteria in writing for determination of the fee for facilities licensed under section 104, taking into consideration such factors as (1) the type, size, and location of facility involved, and other factors pertaining to hazard, and (2) the nature and purpose of the facility. For other licenses, the Commission shall collect such nominal fees as it deems appropriate. "g. In administering the provisions of this section, the Commission shall use, to the maximum extent practicable, the facilities and services of private insurance companies and insurance adjustment organizations, and the Commission may contract to pay a reasonable compensation for such services. Any contract made under the provisions of this subsection may be made without regard to the provisions of section 3709 of the Revised Statutes, as amended, upon a showing by the Commission that advertising is not reasonably practicable, and advance payments may be made. "h. The agreement of indemnification may contain such terms as the Commission deems appropriate to carry out the purposes of this section. Such agreement shall provide that, when the Commission makes a determination that the United States will probably be required to make indemnity payments under this section, the Commission shall collaborate with any person indemnified and may approve the payment of any claim under the agreement of indemnification, appear through the Attorney General on behalf of the person indemnified, take charge of such action, and settle or defend any such action. The Commission shall have final authority on behalf of the United States to settle or approve the settlement of any such claim on a fair and reasonable basis with due regard for the purposes of this Act. Such settlement may include reasonable expenses in connection with the claim incurred by the person indemnified. "i. After any nuclear incident which will probably require payments by the United States under this section, the Commission shall make a survey of the causes and extent of damage which shall forthwith be reported to the Joint Committee. Except as forbidden by the provisions of chapter 12 of this Act or any other law or Executive order, such reports shall also be made available to the public, to the parties involved and to the courts. The Commission shall report to the Joint Committee by April 1, 1957, and every three years thereafter on the operations under this section. "j. In administering the provisions of this section, the Commission may make contracts in advance of appropriations and incur obligations without regard to section 3679 of the Revised Statutes, as amended. Any appropriations presently or hereafter made available to the Commission shall be available for the payment of obligations under indemnity agreements entered into under this section. There are hereby authorized to be appropriated $50 million to be available for emergency use by the Commission upon certification by the Commission to the Secretary of the Treasury that a nuclear incident has occurred which may require payment by the Commission out of these funds pursuant to the provisions of this section." Mr. K. E. FIELDS, CONGRESS OF THE UNITED STATES, General Manager, United States Atomic Energy Commission, Washington, D. C. DEAR MR. FIELDS: This will confirm discussions at the meeting in which Messrs. Price, Mitchell, and LaPlante participated with representatives of the staff of the Joint Committee on March 19, concerning the arrangements and scope of the Commission's presentation at the indemnity hearings. Mr. Mitchell indicated that the Commission intended to present its views on the Anderson-Price bills, together with some narrative discussions on the probabilities of reactor accidents and extent of possible damage. He further indicated that the Commission testimony would include comments on means of handling indemnity or insurance for American equipment firms who manufacture reactors for operation abroad in response to our letter of March 7, 1957. Mr. Price indicated that it was not clear whether the Commission would be able to submit its report on the probabilities of reactor hazards and extent of damage by Friday, March 22, as requested in our letter of March 12. I indicated that in line with our letter, it would be helpful if the Commission was prepared to testify on the following additional matters: 1. The rates, terms, and coverage of private insurance for reactor hazards. 2. A description of AEC research projects on reactor hazards. 3. Comments on the desirability of the public availability of Reactor Safeguard Committee reports on power reactors. 4. Information and comments on the status of AEC regulations or policies which would establish criteria or factors as to the location and other safety arrangements with respect to reactor hazards. There undoubtedly will be other matters relating to the indemnity problem that various members of the committee will want to raise during the Commission presentation on Monday, March 25. Sincerely yours, JAMES T. RAMEY, Executive Director. [S. 1684, 85th Cong., 1st sess.] A BILL To amend the Atomic Energy Act of 1954, as amended, with respect to procedures on applications for facility licenses, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Atomic Energy Act of 1954, as amended, is amended by adding thereto a new section, making the appropriate amendment to the Table of Contents, as follows: "SEC. 29. COMMITTEE ON REACTOR SAFEGUARDS.-There is hereby established a Committee on Reactor Safeguards consisting of a maximum of fifteen members appointed by the Commission for terms of four years each. The Committee shall review safety studies and facility license applications referred to it and shall make reports thereon, shall advise the Commission with regard to the hazards of proposed or existing reactor facilities and the adequacy of proposed reactor safety standards, and shall perform such other duties as the Commission may request. One member shall be designated by the Committee as its Chairman. The members of the Committee shall receive a per diem compensation for each day spent in meetings or conferences, and all members shall receive their necessary traveling or other expenses while engaged in the work of the Committee. The provisions of section 163 shall be applicable to the Committee." SEC. 2. The Atomic Energy Act of 1954, as amended, is amended by adding thereto a new subsection 182 d., as follows: "The Committee on Reactor Safeguards shall review each application under section 103 or 104 b. for a license for a facility, any application under section 104 c. for a testing facility, and any application under section 104 a. or c. specifically referred to it by the Commission, and shall submit a report thereon, which shall be made part of the record of the application and available to the public, except to the extent that security classification prevents disclosure." SEC. 3. The Atomic Energy Act of 1954, as amended, is amended by adding the following sentence at the end of section 189 a.: "The Commission shall hold a hearing after thirty days notice and publication once in the Federal Register |