Nuclear regulation: A perspective on liability protection for a nuclear plant accident

The Price-Anderson Act encourages private industry development of nuclear energy. It establishes a source of funds to compensate personal injury and property damage from a nuclear accident and limits the liability of private industry for such accidents. The indemnity provisions of the act, which allow the Nuclear Regulatory Commission and the Department of Energy to enter into new indemnity agreements and set the liability limits, expire in August 1987. GAO believes that the act's indemnity authority should be extended and that its liability protection is too low to provide reasonable compensation for the worst nuclear plant accident. The financial consequences of a catastrophic accident at 115 of 119 plants could far exceed the liability limit. The act covers all off-site accident damages resulting from the release of radioactive material. However, it does not clearly state whether the costs for a precautionary evacuation are covered when a release appears imminent but does not actually occur