Licensing and Liability of Atomic Energy

Law Summary

Declaration of Policy

The Philippine Government endorses the peaceful development and use of atomic energy.
Objectives include improving health, prosperity, scientific and industrial progress.
State control over atomic energy facilities and materials is mandated for public safety, international obligations, and prevention of unauthorized use.
Establishes rules on liability for nuclear damage and ensures funds availability for claims.

Definitions

Defines key terms including:
- "Commission" as the Philippine Atomic Energy Commission;
- "Atomic energy facility" as equipment capable of producing or utilizing atomic energy materials;
- "Atomic energy material" includes source material, special fissionable material, and radioactive material;
- "Installation operator" as licensed person operating an installation or the Commission itself;
- "Nuclear damage" covers loss of life, injury, or property damage from radioactive or related hazardous properties;
- Various other definitions crucial to the Act’s scope including "nuclear reactor," "nuclear incident," "person," and types of nuclear materials.

Commission Authority

Authorized to enact regulations for protecting public health and safety related to atomic energy.
Licenses and regulates atomic energy facilities and materials.
Conducts inspections, hearings, and investigations.
Can issue, modify, suspend, or revoke licenses.
Establishes advisory boards to aid on safety issues.
Controls import/export and safe transport of atomic energy materials.
Collects fees for licensing and regulation.
Coordinates with the Department of National Defense for security-related inspections.

Regulatory Policy

Licenses and regulations impose minimum requirements adequate to protect public health, safety, and national interest.

Regulation and Licensing of Atomic Energy Facilities

Prohibits transferring, constructing, owning, operating, importing or exporting atomic energy facilities without a Commission license.
Licensing applications must include technical, financial, character, and citizenship information, site and operational details.
Licenses issued only if consistent with policy, applicant qualified, no undue public risk, and financial security assured if required.
Citizenship requirement: licenses limited to Filipinos or corporations at least 60% Filipino-owned.
Provisional licenses may be issued for construction with reasonable assurance of safety.
License to operate issued after complete safety evaluation and compliance with laws.
Advisory Board on safety established for expert recommendations but Commission holds final authority.
License revocation may still allow facility operation if public interest or development program requires, with just compensation.
Operators of commercial power facilities must comply with other relevant laws; imported nuclear fuel may be tax-exempt for ten years.
Individual operators handling controls must be licensed with set qualifications.

Regulation and Licensing of Atomic Energy Materials

Licensing required for manufacture, possession, use, export/import of atomic energy materials, except for mining which is governed by mining laws until removal.
Commission may exempt small low-activity quantities or uses from licensing if not posing undue risk.
Transport of atomic energy materials must comply with Commission safety regulations.
Licensing applications require necessary information as per regulations.
Licenses issued upon findings similar to facility licensing criteria.
Government holds prior/preferential rights to acquire special fissionable materials for national interest at fair price.

Common Provisions for Regulation

Licenses contain terms prescribed by the Commission.
Licenses have a specified term, max 35 years, renewable.
Transfer or assignment of licenses requires Commission consent.
Licenses subject to amendment due to law or regulation changes.
The Commission possesses enforcement powers including inspections, requiring information, and ordering remedial measures.
Licenses may be suspended or revoked for falsehoods, noncompliance, or violation of laws and regulations.
Protective measures apply upon suspension, revocation, or expiration to safeguard public health.
The Commission’s own activities are exempt from licensing.
Applications can combine several activities and must be signed.

Administrative Procedure and Judicial Review

Hearings required for licensing actions; affected persons admitted as parties.
Immediate orders possible without hearing only for urgent public or national safety.
Regulations effective 15 days after publication unless immediate effect justified.
Incident reports by licensees inadmissible in damage suits.
Commission hearings not bound by strict evidence rules but exclude irrelevant or repetitive evidence.
Orders and decisions must be written, specifying findings and rationale, and available to the public.
Court of Appeals has jurisdiction for judicial review; may modify or set aside Commission decisions if unsupported or unlawful.
Appeal does not suspend license grant but stays suspension/revocation pending final decision unless otherwise ordered.

Liability for Nuclear Damage

Installation operator is liable for nuclear damage caused by nuclear incidents in or involving their facility or nuclear material.
Liability is absolute and exclusive except where specified.
No relief from liability due to natural disasters of exceptional character.
Recourse limited to contractual rights or intentional acts causing damage.
Liability excludes damage from armed conflict or civil war.
Liability capped at five million US dollars equivalent per incident.
Liability excludes damage to the nuclear installation itself or transport means at the time of incident.
Liability of others unaffected where installation operator is not liable for intentional acts.
Small quantities of nuclear material may be excluded by regulation.
Financial security (insurance or equivalent) required for licenses to operate nuclear installations.
Carrier certificates evidencing financial security must accompany nuclear material transport.
Damage caused partly by nuclear incident and partly by other causes may be treated as nuclear damage if inseparable.
Multiple operators may be jointly and severally liable subject to limits.
Single operator liable for each installation involved, with limits.
Carriers or handlers may be designated as installation operators by the Commission.
Government indemnifies operators if insurance is insufficient, up to liability limit.
Courts can order equitable compensation distribution if claims exceed liability limit.
Court of First Instance at incident location has exclusive jurisdiction over compensation claims.
Commission may intervene in proceedings if government indemnity is involved.
The Commission investigates all nuclear incidents.
Installations on same site may be treated as a single installation.
Government exempt from financial security requirements.
Insurers must provide prior notice before cancelling financial security.
Claimants may sue operator or insurer for compensation.
Rights to compensation prescribe after ten years; suits barred after three years from knowledge of damage and liable operator.
For nuclear material lost or stolen, prescription is max 20 years from loss.

Penal Provisions

Wilful violation of key licensing provisions punishable by up to five years imprisonment or a fine of up to ₱10,000, or both.
Other violations incur up to two years imprisonment or a fine up to ₱5,000, or both.

Final Provisions

Invalid provisions do not affect remainder of the Act.
Inconsistent laws and regulations repealed or modified.
The Act takes effect ten days after publication in the Official Gazette.