Background Information
A DOE Management Tool - The PAAA Enforcement Program
Background Summary
The Atomic Energy Act provides indemnification1 to DOE contractors who manage and operate
nuclear facilities in the DOE complex. In 1988, the Price-Anderson Amendments Act (PAAA) was
signed into law to continue this indemnification. The PAAA subjects DOE-indemnified contractors,
subcontractors, and suppliers to potential civil penalties for violations of DOE rules, regulations,
and compliance orders relating to nuclear safety requirements. As part of its agreement to
continue the indemnification coverage, Congress mandated that DOE enforce nuclear safety requirements
to minimize the risk to workers and the public. On August 17, 1993, DOE published its nuclear safety
enforcement procedural rules and enforcement policy (10 CFR Part 820, appendix A, General Statement
of Enforcement Policy), which was further amended on November 7, 1997, and March 22, 2000. The
Office of Enforcement has the responsibility to carry out the statutory enforcement authority
provided to DOE in the PAAA. The Office of Enforcement commenced enforcement of the nuclear
safety rules in 1995.
The Bob Stump National Defense Authorization Act for Fiscal Year 2003 extended current
indemnification levels until December 31, 2004, and required DOE to promulgate final rules to
enforce Occupational Safety and Health requirements. The Ronald W. Reagan National Defense
Authorization Act for Fiscal Year 2005 extended indemnification until December 2006. The
Energy Policy Act of 2005 extended indemnification of DOE contractors to December 2025,
increased liability coverage to $10 billion per incident, and repealed remission of civil
penalties for nonprofit organizations upon the signing of a new contract.
On January 26, 2005, the Department published 10 CFR Part 824 to implement Section 234B
of the Atomic Energy Act. Section 234B stipulates that a contractor or subcontractor to the
DOE who violates any rule, regulation, or order relating to the safeguarding or security of
Restricted Data, other classified information, or sensitive information shall be subject to
a civil penalty. In publishing Part 824, DOE decided that civil penalties will be assessed
only for violations of requirements for the protection of classified information (Restricted
Data, Formerly Restricted Data, and National Security Information). This regulation applies
to entities that have entered into contracts with DOE, rather than to individual employees
of contractors and subcontractors. Contractors and their subcontractors will be held
responsible for the acts of their employees who fail to observe classified information
security requirements.
On February 9, 2006, DOE issued the Worker Safety and Health Program rule, 10 CFR Part 851,
which includes in subpart E the enforcement process to be applied to worker safety violations,
and, in appendix B, the enforcement policy for such violations. Part 851 went into effect on
February 9, 2007, and as of May 25, 2007, no work may be performed at a covered workplace
unless an approved worker safety and health program is in place.
1 By indemnifying the contractor, the government acts as an insurer against any findings of liability arising from the nuclear activities of the contractor within the scope of its contract.
This page was last updated on November 01, 2007
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