Nuclear Liability and Compensation Act (S.C. 2015, c. 4, s. 120)

Marginal note:Absolute liability

• 10 (1) The liability of an operator for damage that is caused by a nuclear incident is absolute.

• Marginal note:Tort or fault

  (2) For the purposes of subsection (1), no proof of tort or of fault within the meaning of the Civil Code of Québec is required.

Marginal note:Liability — jointly and severally, or solidarily

11 If liability under this Act is incurred by two or more operators, each is jointly and severally, or solidarily, liable to the extent that it cannot reasonably be determined what portion of the liability is attributable to each operator.

Marginal note:Person responsible for nuclear incident

12 An operator is not liable for damage that is suffered by a person if that person intentionally caused the nuclear incident wholly or partly by an act or omission or under circumstances amounting to gross negligence or, in Quebec, gross fault.

Marginal note:No recourse

13 In respect of damage that is caused by a nuclear incident, an operator has no right of recourse against any person other than an individual who intentionally caused the nuclear incident by an act or omission.

Compensable Damage

Marginal note:Bodily injury or damage to property

14 Bodily injury or death and damage to property that are caused by a nuclear incident are compensable.

Marginal note:Psychological trauma

15 Psychological trauma that is suffered by a person is compensable if it results from bodily injury to that person that was caused by a nuclear incident.

Marginal note:Liability for economic loss

16 Economic loss that is incurred by a person as a result of their bodily injury or damage to their property and that is caused by a nuclear incident, or psychological trauma that results from that bodily injury, is compensable.

Marginal note:Costs and wages

• 17 (1) The costs that are incurred by a person who loses the use of property as a result of a nuclear incident and the resulting wage loss by that person’s employees are compensable.

• Marginal note:Power failure

  (2) If a nuclear incident occurs at a nuclear installation that generates electricity, the costs resulting from a failure of the installation to provide electricity are not compensable under subsection (1).

Marginal note:Environmental damage — Canada

18 Reasonable costs of remedial measures that are taken to repair, reduce or mitigate environmental damage that is caused by a nuclear incident are compensable if the measures are ordered by an authority acting under federal or provincial legislation relating to environmental protection.

Marginal note:Environmental damage — Contracting State other than Canada

19 Unless the damage is insignificant, reasonable costs of remedial measures that are taken to repair, reduce or mitigate environmental damage that is caused by a nuclear incident are compensable if the measures are ordered by an authority of a Contracting State other than Canada acting under the laws of that State relating to environmental protection.

Marginal note:Preventive measures — Canada

• 20 (1) If an authority — acting under a nuclear emergency scheme established under federal or provincial legislation — has recommended that measures be taken in a specified area to prevent damage, the following costs and losses of persons who live in, carry on business in, work in or are present in the area are compensable:

  • (a) the reasonable costs of the measures; and

  • (b) the costs and economic loss — including lost wages — arising from the loss of use of property.

• Marginal note:Non-application

  (2) For greater certainty, any federal, provincial or municipal authority, or any of its agencies, that establishes or implements a nuclear emergency scheme is not to be compensated under subsection (1).

Marginal note:Preventive measures — Contracting State other than Canada

• 21 (1) If an authority — acting under an emergency scheme established under the laws of a Contracting State other than Canada — has recommended that, because of grave and imminent danger of damage, measures be taken in a specified area to prevent such damage, the following costs and losses of persons who live in, carry on business in, work in or are present in the area are compensable:

  • (a) the reasonable costs of the measures; and

  • (b) the costs and economic loss — including lost wages — arising from the loss of use of property.

• Marginal note:Non-application

  (2) For greater certainty, any authority, or any of its agencies, that establishes or implements a nuclear emergency scheme is not to be compensated under subsection (1).

Marginal note:Damage attributable to concomitant nuclear incidents

22 Any damage resulting from a nuclear incident and any concomitant non-nuclear incident is deemed to be damage that is caused by the nuclear incident to the extent that it cannot be identified as having been caused only by the non-nuclear incident.

Marginal note:Damage to means of transport, structure or site

23 If a nuclear incident occurs during the transportation of nuclear material to or from a nuclear installation, or any storage incidental to the transportation, damage to the means of transport or the structure or site where the nuclear material is stored is not compensable under this Act.

Financial Provisions

Marginal note:Limit of operator’s liability

• 24 (1) The liability of an operator under this Act for damage resulting from a nuclear incident is limited to

  • (a) $650 million for a nuclear incident arising within one year after the day on which this paragraph comes into force;

  • (b) $750 million for a nuclear incident arising within one year after the year referred to in paragraph (a);

  • (c) $850 million for a nuclear incident arising within one year after the year referred to in paragraph (b); and

  • (d) $1 billion for a nuclear incident arising after the year referred to in paragraph (c).

• Marginal note:Amendment to amount of liability

  (2) The Governor in Council may, by regulation,

  • (a) amend subsection (1) to increase any amount of liability; or

  • (b) reduce the amount of liability applicable to an operator of a nuclear installation, or operators of a class of nuclear installations, having regard to the nature of the installation and the nuclear material contained in it.

• Marginal note:Clarification

  (3) Subsection (1) does not relieve an operator from payment of the costs of administering claims, court costs or interest on compensation.

Marginal note:Liability — transportation

25 If a nuclear incident occurs during the transportation of nuclear material or storage incidental to the transportation and more than one operator is liable for the damage that is caused by that nuclear incident, the total liability of those operators is limited to the amount referred to in subsection 24(1) in relation to one operator.

Marginal note:Review by Minister

• 26 (1) The Minister must review the limit of liability, referred to in subsection 24(1), on a regular basis and at least once every five years.

• Marginal note:Criteria

  (2) In carrying out the review, the Minister must have regard to

  • (a) changes in the Consumer Price Index, as published by Statistics Canada under the authority of the Statistics Act;

  • (b) financial security requirements under international agreements respecting nuclear liability; and

  • (c) any other considerations that the Minister considers relevant.

Marginal note:Operator’s obligation

• 27 (1) An operator, other than a department listed in Schedule I to the Financial Administration Act, must maintain, for each of the operator’s nuclear installations, financial security to compensate persons who suffer damage that is caused by a nuclear incident in an amount that is equal to the amount referred to in subsection 24(1) or, if the operator is subject to a regulation made under paragraph 24(2)(b), the amount set out in that regulation.

• Marginal note:Foreign operator’s obligation — transporting nuclear material within Canada

  (2) The Minister may require an operator, as defined in Article 1.I(d) of the Annex to the Convention but who is not an operator as defined in section 2 of this Act, and who is transporting nuclear material within Canada to maintain financial security in an amount prescribed by regulation but not more than the amount referred to in subsection 24(1) to compensate persons who suffer damage that is caused by a nuclear incident.

• Marginal note:Non-application

  (3) Subsection (2) does not apply

  • (a) to transport by sea if, under international law, there is a right of entry into a Canadian port in a case of distress, or if there is a right of innocent passage through Canadian territory; and

  • (b) to transport by air if, under an agreement to which Canada is a party or under international law, there is a right to fly over or land on Canadian territory.

• Marginal note:Use of financial security

  (4) The financial security is not to be used by an operator referred to in subsection (1) to pay their costs of administering claims, court costs, legal fees or interest on compensation.

Marginal note:Insurance

• 28 (1) The financial security is to be in the form of insurance with an approved insurer, containing only the terms and conditions set out in a standard insurance policy that is approved by the Minister.

• Marginal note:Alternate financial security

  (2) The Minister may enter into an agreement with the operator that authorizes that a portion of the financial security be an alternate financial security.

• Marginal note:Maximum amount of financial security

  (3) The amount of the alternate financial security must not, unless another percentage has been fixed by regulation, exceed 50% of the operator’s liability that is applicable under section 24.

• Marginal note:Terms of agreement

  (4) The agreement must identify the financial instrument being used as the alternate financial security, specify its dollar value and set out any conditions that the Minister considers appropriate, including a requirement that the operator submit reports or allow the Minister to undertake financial audits in respect of the security or that the operator pay a fee for the authorization of the security or for the audits.

• Marginal note:Amendment or revocation

  (5) The Minister may amend the conditions of an agreement or revoke an agreement.

Marginal note:Approved insurer

29 The Minister may, subject to any terms and conditions that he or she may impose, designate as an approved insurer any insurer or association of insurers that, in his or her opinion, is qualified to fulfill the obligations of an approved insurer under this Act.

Marginal note:Suspension or cancellation

30 An approved insurer or any provider of an alternate financial security referred to in subsection 28(2) may suspend or cancel an operator’s insurance or alternate financial security only if written notice is given to the Minister at least two months before the suspension or cancellation, but, if the insurance or security relates to the transportation of nuclear material, the cancellation or suspension is not to take effect during the period of transportation to which it relates.

Marginal note:Indemnity agreements — general rule

• 31 (1) The Minister may enter into an indemnity agreement with an operator under which Her Majesty in right of Canada covers any risks that, in the Minister’s opinion, would not be assumed by an approved insurer.

• Marginal note:Indemnity agreements — operator subject to regulation made under paragraph 24(2)(b)

  (2) If the nuclear damage is caused by an operator who is subject to a regulation made under paragraph 24(2)(b) and that damage exceeds that operator’s liability under that regulation, the indemnity agreement may also provide that Her Majesty in right of Canada must cover that operator for the difference between the operator’s liability under the regulation and the liability of any other operator under subsection 24(1). Despite the indemnity agreement, the operator remains liable for the damage.

• Marginal note:Fees

  (3) Any indemnity agreement may provide for the payment of fees to Her Majesty in right of Canada.

• Marginal note:Tabling of agreements

  (4) The Minister must cause a copy of each indemnity agreement that is entered into under this section to be laid before each House of Parliament on any of the first 30 days on which that House is sitting after the agreement is entered into.