In 1957, the 1954 Atomic Energy Act was amended to include the Price Anderson Amendment Act (PAAA), which is a no-fault insurance (indemnification) system designed to indemnify DOE contractors and subcontractors under contracts that include a risk of public liability for nuclear safety (i.e. quality assurance, radiation protection) or worker safety and health incidents. This indemnification is a form of self-insurance for claims resulting from nuclear or worker safety and health incidents, and provides a structure that assures monies are readily available to remedy damage to the public that may occur as the result of such an incident.
The indemnification clause and the DOE implementing regulations of PAAA requirements are in the University of California (UC) contract with the DOE, and LBNL is required to comply with the provisions of the contract. In order to enjoy the benefits of indemnification, LBNL adheres to the following:
The DOE Office of Enforcement and Oversight could initiate Enforcement Action, which could result in criminal and/or civil penalties and fines; and/or
The DOE Site Office could initiate contract sanctions, which could result in the Lab losing its contract extensions and/or a reduction of our contract fee.