The Nuclear Energy Institute (NEI) stated Thursday that proposed regulations proposed under the Convention of Supplementary Compensation for Nuclear Damage (CSC) are complex and could discourage export potential.
The CSC stipulates that compensation be made to victims of a nuclear accident and also designates which governmental agencies would bear that cost if an event were to take place. Under CSC membership, an equivalent to $420 million would be in the first tier of compensation supplied by the government. A second tier of compensation would be supplied by international funds.
U.S. nuclear producers and suppliers reimburse the government for its portion of this international funding. According to the announcement, the U.S. is the only county that does this, and NEI states that a global nuclear incident could mean between $70 million and $150 million being paid to the international fund from suppliers.
NEI vice president, general counsel and secretary Ellen Ginsberg called on the Energy Department to reconsider this position and pursue a clearer plan that is fair to suppliers and those in need of the funding.
“NEI recognizes the difficulty of developing regulations consistent with (the Energy Independence and Security Act of 2007) EISA’s directives, and appreciates the department’s efforts to develop a proposed rule that meets a number of challenging criteria," Ginsberg said.
The Energy Department is considering two approaches. The first is based on the type of product supplied and the second is based upon the sector in which a good is supplied. According to the NEI, this unclear nature isn't allowing suppliers interested in the global market to make accurate liability and equity risks.
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