HOUSE BILL REPORT

SSB 6575

BYSenate Committee on Energy & Utilities (originally sponsored by Senators Benitz and Williams; by request of Department of Ecology)

Revising liability requirements for nuclear operations.

House Committe on Energy & Utilities

Majority Report:  Do pass as amended.  (12)

      Signed by Representatives Nelson, Chair; H. Myers, Vice Chair; Hankins, Ranking Republican Member; Bennett, Brooks, Cooper, Gallagher, Jacobsen, Jesernig; May, R. Meyers and Miller.

House Staff:Harry Reinert (786-7110)

AS PASSED HOUSE FEBRUARY 27, 1990

BACKGROUND:

The Department of Ecology is directed to periodically review the potential for injury to persons or property from activities related to the handling of low-level radioactive materials.  The department completed the first report in December 1987.  Subsequent reports are due at five year intervals.  The 1987 report concluded that there was a lack of information to determine the amount of liability coverage that should be required of many license and permit holders.  The report also concluded that for many businesses, liability coverage was either unavailable or prohibitively expensive.

After the periodic review of the liability coverage issue, the department is directed to establish by rule the minimum amount of liability coverage that permit and license holders should be required to maintain.  The department must also require that permit and license holders obtain the maximum amount of liability insurance they can from private sources.

The Department of Ecology issues permits for persons involved in the disposal of low-level radioactive waste.  In order to obtain a permit from the department, a person must indemnify the state for any damages that may result from the activity and must also demonstrate that he or she has the required amount of liability coverage.

The Department of Health issues licenses and permits to persons engaged in a wide variety of activities related to the handling, packaging, storing, and processing of low-level radioactive materials.  The Department of Health must obtain an indemnification and assurance of liability coverage in the amount determined by the Department of Ecology from any person to whom it issues a license or permit.

Neither the Department of Ecology nor the Department of Health is currently requiring all permit and license holders to maintain liability coverage or to indemnify the state.

SUMMARY:

The Departments of Ecology and Health are each responsible for requiring that a person holding a permit or a license issued by the respective department has liability coverage which is adequate to protect the state and the public from damages that might result from activities related to the handling of low- level radioactive materials.  Each department determines for the permit or license holders that it regulates what an adequate amount of liability coverage is.  Each department may exempt from the liability coverage requirements a class of license or permit holders that it determines is engaged in an activity which does not pose a significant risk of injury or a substantial financial risk to the state.  Each department may also exempt from the liability coverage requirements an individual license or permit holder that the department determines is unable to obtain liability coverage at a reasonable cost and who does not pose a significant risk of injury or a substantial financial risk to the state.

The Departments of Health and Ecology are directed to study and report back to the Legislature on methods by which persons who have state licenses for the handling of low-level radioactive materials may obtain liability coverage.  The study must be submitted to the Energy and Utilities Committees of the House of Representatives and the Senate by December 1, 1990.

Fiscal Note:      Requested February 21, 1990.

House Committee ‑ Testified For:    Senator Max Benitz, Prime sponsor; Elaine Carlin, Department of Ecology; Terry Strong, Department of Health; and Barry Bede, U.S. Ecology.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    It is difficult to comply with the current statutory requirements.  If the Department of Ecology enforced the liability coverage mandate, many small businesses might be forced out of business. There is a lack of adequate information to establish the liability coverage requirements contemplated in the current law.

House Committee - Testimony Against:      None.