Regulatory Initiative: Proposed Nuclear Liability and Compensation Regulations

Title or working title of the Regulatory Initiative:

Nuclear Liability and Compensation Regulations

Description of the objective:

Enabling Act: Nuclear Liability and Compensation Act

On February 26, 2015, the Nuclear Liability and Compensation Act (NLCA) received Royal Assent. The NLCA will replace the current Nuclear Liability Act to provide a stronger legislative framework that will better address the question of liability and compensation after a nuclear incident. The NLCA sets the absolute liability limit of an operator of a nuclear installation at $1 billion, an amount that will apply to nuclear power plant operators.
In order for the NLCA to apply to nuclear facilities, they must first be designated as “nuclear installations” for the purposes of the Act in regulations. However, the Act itself contains no provisions, other than those to be made in regulations, to distinguish between different classes of nuclear installations. Therefore, without regulations, the $1 billion liability amount would apply to all categories of nuclear installation.  Not all nuclear installations represent the same level of risk as a nuclear power plant. Accordingly, regulations are needed in order to ensure that the level of liability of operators of nuclear installations is commensurate with the risk that their respective nuclear installations represent, in the event of a nuclear incident.
The regulatory proposal will:

• designate which nuclear facilities will be subject to the Act; and
• establish classes or categories of nuclear installations and their respective liability amounts, which are to be commensurate with the risk they represent, so that operators are held responsible and accountable to the Canadian public for any incident that may occur.

Indication of business impacts:

Given that the proposed Regulations do not impose administrative burden on business, the “One-for-One” Rule does not apply.

Public consultation opportunities:

In October 2014, preliminary consultations on the substance of the proposed Regulations were undertaken with all nuclear installation operators (i.e., the nuclear power plant operators and the low-risk nuclear installation operators).  The operators were invited to comment on the proposed designations, the nuclear installation classes, and the liability limits. There were no major issues identified as a result of these consultations.
Consultation will also be available once the regulatory proposal is pre-published in the Canada Gazette, Part I for a 30-day public comment period.

Departmental contact:

Jacques Hénault                                        
Advisor, Nuclear Liability
jacques.henault@nrcan-rncan.gc.ca

For more information

• Natural Resources Canada’s Act and Regulations
• The Cabinet Directive on Regulatory Management 
• The Red Tape Reduction Action Plan
• The Canada-United States Regulatory Cooperation Council

To learn about upcoming or ongoing consultations on proposed federal regulations, visit the Canada Gazette and Consulting with Canadians websites.