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About STAR's reauthorization efforts Background The Price-Anderson Act was enacted in 1957. Originally, it was intended to be a temporary measure to support the fledgling nuclear industry. The Act establishes a taxpayer-backed insurance regime for nuclear power plants that limits liability of nuclear operators in the event of an accident. Under Price-Anderson, commercial nuclear operators are required to carry only $200 million in primary insurance. Secondly, in the event of an accident, liability is capped at approximately $88 million per reactor, for an industry-wide total of approximately $9.4 billion. The law is now under consideration for reauthorization by the 107th Congress. As a result, major policy issues have arisen after the September 11th terrorist attacks and from the transition of nearly half of the nation's nuclear power plants from a price regulated environment to a deregulated, price-competitive environment. In the aftermath of the September 11th attacks, there is now a major question as to whether or not the Price-Anderson Act covers destructive acts of terrorism. The current law is silent on this matter and requires Congressional clarification. In 1988, when the law was last amended, the 100th Congress did not envision the possibility of highly destructive acts of terror against nuclear facilities. The September 11th attacks raises concerns that acts of terrorism against nuclear plants could be uninsured on the basis that terrorist acts could fall under the "acts of war" exclusion in the law. Additionally, utility deregulation has created newly changed circumstances that have created major policy gaps. For instance, the bankruptcy of Enron, Pacific Gas and Electric (PG&E) and British Nuclear Fuels Limited (owners in whole or part of nuclear power plants) highlights a critical shortcoming in federal policy to ensure that nuclear accident victims can be compensated and that the federal government does not, by default, assume major liabilities from nuclear accidents. About STAR's reauthorization efforts STAR is working to ensure:
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