Price-Anderson Act Coverage

In 1957, Congress enacted the Price-Anderson Act (PAA) as an amendment to the Atomic Energy Act of 1954 (AEA), 42 U.S.C. 2011 et seq., to encourage the development of the nuclear industry and to ensure prompt and equitable compensation in the event of a nuclear incident. Specifically, the PAA establishes a system of financial protection for persons who may be liable for and persons who may be injured by a nuclear incident. With respect to activities conducted for the U.S. Department of Energy (DOE), the PAA achieves these objectives by requiring DOE to include an agreement of indemnification in each contract that involves the risk of “public liability” meaning any legal liability resulting from a “nuclear incident” or “precautionary evacuation” as those terms are defined in the AEA.