[REPUBLIC ACT No. 5207, AS AMENDED BY PRESIDENTIAL DECREE No. 1484] AN ACT PROVIDING FOR THE LICENSING AND REGULATION OF ATOMIC ENERGY FACILITIES AND MATERIALS, ESTABLISHING THE RULES ON LIABILITY FOR NUCLEAR DAMAGE, AND FOR OTHER PURPOSES.
Begun and held in the City of Manila on Monday, the twenty-second day of January, nineteen hundred and sixty-eight.
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
S. No. 530 H. No. 16029 Sixth Congress of the Republic of the Philippines Third Session
This Act shall be known as the “Atomic Energy Regulatory and Liability Act of 1968.”
It is hereby declared to be the policy of the Philippine Government to encourage, promote and assist the development and use of atomic energy for all peaceful purposes, as a means to improve the health and prosperity of the inhabitants of the Philippines, contribute to the general welfare, and accelerate scientific, technological, agricultural, commercial, and industrial progress. The production and use of atomic energy facilities and atomic energy materials shall be subject to control by the State in order to achieve the foregoing purposes, to assure fulfillment of the international obligations of the State, to protect the health and safety. of workers and of the general public, and to protect against the use of such facilities and materials for unauthorized purposes. In order to encourage the development and use of atomic energy for peaceful purposes and to provide proper protection of the public, it is also in the national interest to establish the rules on liability for nuclear damage and to assure the availability of funds to satisfy liability claims.
As used in this Act:
In the performance of its functions under this Act, the Commission is authorized:
In issuing licenses and regulations under this Act, the Commission shall impose the minimum requirements consistent with the Commission's obligations under this Act to protect the health and safety of the public and to promote the national interest.
It shall be unlawful for any person to transfer, construct, receive, own, possess, operate, import or export any atomic energy facility except under a license issued by the Commission under this Act.
Each application for a license for an atomic energy facility shall be in writing and shall contain such information as the Commission may by regulation or order deem to be necessary to carry out its responsibilities under this Act. Such information shall include, but shall not be limited to, information bearing on the technical and financial qualifications of the applicant, the character of the applicant, and the citizenship of the applicant. In addition the applicant shall state such technical information as to the proposed atomic energy facility, the amount, kind, and source of reactor fuel requirements, the proposed location and site of the atomic energy facility, the operational procedure for the atomic energy facility and such other information as the Commission may by regulation deem necessary in order to enable it to decide whether operation of the atomic energy facility will not pose undue risk to the health and safety of the public.
The Commission shall issue a license upon finding: (1) That the proposed activities are consistent with the policies declared in Section Two of this Act; (2) That the applicant is technically and financially qualified to engage in the proposed activities in accordance with the requirements of this Act, and the Commission's regulations; (3) That the proposed activities will not pose undue risk to the health and safety of the public; and (4) That the applicant, if required by this Act or the Commission's regulations, has financial security to fulfill the obligations for liability for nuclear damage.
No license to acquire, own, or operate any atomic energy facility shall be issued to an alien, or any corporation or other entity which is owned or controlled by an alien, a foreign corporation, or a foreign government. For purposes of this Act, a corporation or entity is not owned or controlled by an alien, a foreign corporation or a foreign government if at least sixty per cent (60%) of its capital stock is owned by Filipino citizens.
In all cases of applications for licenses to construct an atomic energy facility if the Commission finds that, on the basis of the technical information and data so far made available to it, there is reasonable assurance that the proposed installation can be constructed and operated at the proposed location without undue risk to the health and safety of the public, it shall initially issue a provisional license to the applicant. Such a provisional license may be granted even if the health and safety information then available is less than would be needed for a license to operate, provided that the Commission is satisfied that there is reasonable assurance that questions of health and safety will be so resolved as to warrant the issuance of a license to operate the installation.
Upon the filing of any additional information and data needed to enable the Commission to make a determination of the safety aspects of the complete atomic energy facility, and upon finding that the faci1ity authorized has been constructed and will operate in conformity with the application as amended and in conformity with the provisions of this Act and of the regulations of the Commission, and in the absence of any good cause being shown to the Commission why the granting of a license would not be in accordance with the provisions of this Act, the Commission shall thereupon issue a license to the applicant to operate the facility.
Upon the recommendation of the Commission, the Chairman of the National Science Development Board shall establish an Advisory Board on safety of atomic energy facilities and materials not exceeding eleven in number and appoint the members, to assist and advise the Commission on the health and safety matters arising in connection with atomic energy facility and material licenses, and regulations applicable to such licenses, composed of experts outside the Commission from other government agencies or the private sector or both: Provided, however, That the Commission shall have the final decision and responsibility with respect to such matters. The opinions and reports of the Board on license applications shall be made in writing and shall be made available to the public.
Whenever the Commission finds that the public convenience and necessity or the atomic energy development program of the Commission requires continued operation of an atomic energy facility the license for which has been revoked, the Commission may, after consultation with the Public Service Commission or appropriate agency having jurisdiction, order that possession be taken of such atomic energy facility (including any atomic energy materials which are at the facility for use in operation of the facility) and that it be operated for such period of time as in the judgment of the Commission, the public convenience and necessity or the atomic energy development program of the Commission require, until a license for the operation of the atomic energy facility shall become effective. Just compensation shall be paid for the use of the facility.
Nothing in this Act shall be construed to exempt the operator of an atomic energy facility designed primarily for the generation of electricity for commercial purposes, from complying with other requirements provided by existing laws, such as securing a franchise, a certificate of public convenience and necessity, obtaining approval for rates and services and others, from the appropriate agency having jurisdiction: Provided, however; That upon certification by the Commission, importations of nuclear fuel for use in these facilities shall be free from all taxes and duties within a period of ten years commencing from the date of delivery of the first importation of fuel for the first of such atomic energy facility in the country, any provision of existing laws to the contrary notwithstanding.
The Commission shall:
It shall be unlawful for any person to manufacture, produce, receive, possess, own, use, transfer, import or export any atomic energy material except under a license issued by the Commission or except as otherwise authorized by the Commission under this Act: Provided, however. That the mining and processing of radioactive ores or minerals shall be governed by the applicable mining laws prior to the removal from its place of deposit in nature.
The Commission may by regulation exempt small quantities of low activity atomic energy materials, and users or uses of such low activity atomic energy materials, from the licensing requirements of this Act if the Commission finds that the exemption of such quantities or such kinds of users or uses will not constitute an undue risk to the health and safety of the public and will otherwise be consistent with the national interest.
Any person who ships or transports atomic energy materials shall comply with all such regulations and orders of the Commission as the Commission deems necessary to protect the health and safety of the public.
Each application for a license for atomic energy materials shall be in writing and shall contain such information as the Commission may by regulation or order deem to be necessary to carry out its responsibilities under this Act. All applications and statements shall be signed by the applicant or licensee. Applications for various licenses specified in this Act may be combined in a single application.
The Commission shall issue a license upon finding: (1) That the proposed activity is consistent with the policies declared in Section Two of this Act. (2) That the applicant is technically and financially qualified to engage in the proposed activities in accordance with the requirements of this Act, and the Commission's regulations; (3) That the proposed activities will not pose undue risk to the health and safety of the public; and (4) That the applicant, if required by this Act or the Commission's regulations, has financial protection to fulfill obligations for liability for nuclear damage.
The Government of the Philippines, acting through the Commission, shall have the right to acquire any special fissionable material owned by a person in the Philippines. Such rights may be exercised only when in the view of the Commission the development of atomic energy in the Philippines or the national interest so requires. The acquisition of special fissionable material pursuant to this section shall be made for a fair and reasonable price.
Each license shall be issued for a specified period, as determined by the Commission depending on the type of activity to be licensed, but not exceeding thirty five years and may be renewed upon the expiration of such period.
No license issued by the Commission, and no right granted by any such license, shall be transferred, assigned, encumbered, or in any manner disposed of, either voluntarily or involuntarily, directly or indirectly, unless the Commission shall, after securing full information, find that such transfer, assignment, encumbrance, or other disposition is in accordance with the purposes and provisions of this Act and shall give its consent in writing.
The terms and conditions of all licenses shall be subject to amendment or modification, by reason of amendments of this Act or by reason of amendments of regulations or orders issued in accordance with the terms of this Act.
For the purpose of determining whether the application should be granted or denied or whether a license should be modified, suspended, or revoked, and of otherwise implementing its licensing and regulatory responsibilities under this Act, the Commission may at any time after the filing of the original application and before the expiration of the license (a) require additional written statements which shall, if the Commission so decides, be made under oath or affirmation, and additional technical information and data concerning activities under the application; (b) enter, through authorized representatives, at all reasonable times, the premises where the atomic energy facility is located or where atomic energy material is stored, and perform such inspection as may be necessary; and (c) order the applicant or licensee, where situations or conditions endangering life, health or property are found to exist, to adopt such measures as would eliminate or protect against such situations or conditions.
Any license may be suspended or revoked for any material false statement contained in the application or contained in any statement, record or report required under this Act or for reasons or conditions revealed by such application or statement of fact or any report, record, or inspection or other means which would warrant the Commission to refuse to grant a license on an original application, or for failure to construct or operate an atomic energy facility in accordance with the terms of the license, or for violation of, or failure to observe, any of the terms and provisions of the Act or for any regulation or order by the Commission.
Upon the suspension, revocation, or expiration of a license which is not renewed, and pursuant to Commission order, the Commission shall take, or shall require the licensee to take, such measures as may be necessary to protect the health and safety of the public or the national interest. The Commission may, if necessary to protect the public health and safety or the national interest, take temporary custody of any atomic energy material or facilities held by the licensee pending their appropriate and lawful disposition by or for the licensee.
Nothing in this Act shall be deemed to require a license for the conduct of activities by or on behalf of the Commission.
The Commission may consider in a single application one or more of the activities for which a licensee is required by this Act and may combine in a single license authorization for one or more of such activities. The Commission may require that any application or statement be made under oath or affirmation.
No regulation adopted by the Commission shall be effective less than fifteen days after publication of the regulation in the Official Gazette, except that it the Commission finds that the health and safety of the public or the national interest requires, the regulation may be made effective immediately upon publication in the Official Gazette or upon furnishing copies of the regulation to the persons affected.
No report by any licensee of any incident arising out of or in connection with a licensed activity made pursuant to any requirement of the Commission shall be admitted as evidence in any suit or action for damages growing out of any matter mentioned in such report.
All hearings and investigations before the Commission shall be governed by rules adopted by the Commission: Provided, That in the conduct thereof the Commission shall not be bound by the technical rules of evidence, except that the Commission shall as a matter of policy provide for the exclusion of irrelevant, immaterial, or duly repetitious evidence.
All orders and decisions of the Commission taken in any proceeding after hearing shall be in writing, stating clearly and distinctly the facts and issues involved and the reasons on which the Commission's order or decision is based, and shall be made available to the public.
The Court of Appeals is hereby given the power of judicial review over any final order or decision of the Commission rendered under Section Thirty-five and shall modify or set aside such order or decision when it clearly appears that there was no evidence before the Commission to support reasonably such order or decision, or that the same is contrary to law. Any such final order or decision may be reviewed by the Court of Appeals on the application of any party or other person affected thereby, by certiorari in appropriate cases, or by petition for review, in accordance with the Rules of Court, within such period as the Commission may by rule prescribe but not exceeding thirty days from notice of such order or decision. An appeal shall not suspend the grant of a license, but shall stay the suspension or revocation of a license until after the final disposition of the appeal by the Court of Appeals, unless said Court determines otherwise. On questions of law only such order or decision may be reviewed by the Supreme Court.
The installation operator shall be liable for nuclear damage upon proof that such damage has been caused by a nuclear incident -
(1) before liability with regard to nuclear incidents involving the nuclear material has been assumed, pursuant to the express terms of a contract in writing, by another installation operator; or (2) in the absence of such express terms, before another installation operator has taken charge of the nuclear material;
(1) after liability with regard to nuclear incidents involving the nuclear material has been assumed by him, pursuant to the express terms of a contract in writing, from another installation operator; or (2) in the absence of such express terms, after he has taken charge of the nuclear material: Provided, That if nuclear damage is caused by a nuclear incident occurring in a nuclear installation and involving nuclear material stored therein incidentally to the carriage of such material, the provisions of paragraph (a) of this section shall not apply where another installation operator or person is solely liable pursuant to the provisions of subparagraph (b) or (c) of this paragraph;
The installation operator shall have a right of recourse only:
If the nuclear damage resulted wholly or partly either from the gross negligence of the person suffering the damage or from an act or omission of such person done with intent to cause damage, the court may relieve the installation operator from his obligation to pay compensation in respect of the damage suffered by such person.
No installation operator shall be liable for any nuclear damage caused by a nuclear incident directly due to an act of armed conflict, hostilities, civil war or insurrection.
The liability of the installation operator for nuclear damage under this Act shall be limited to an amount in Philippine pesos which is equivalent to five million dollars, United States currency, for any one nuclear incident, exclusive of an interest or costs which may be awarded by the Court in actions for compensation of such nuclear damage.
The installation operator shall not be liable under this Act for nuclear damage:
Nothing in this Act shall affect
The Commission may, if it determines that the small extent of the risk involved so warrants, exclude by regulation any small quantities of nuclear material from the application of the provisions in this Part VII, Provided, That (a) maximum limits for the exclusion of such quantities have been established by the Board of Governors of the International Atomic Energy Agency; and (b) any exclusion must be within limits so established. [As amended by Section 4 of P.D. No. 1484.]
No license to operate a nuclear installation shall be issued unless the installation operator secures and maintains insurance or other financial security covering his liability for nuclear damage under this Act. The Commission shall by regulation, prescribe the type and terms of financial security herein required, which may include private insurance, private contractual indemnity, self-insurance or other proof of financial ability to pay damages under this Act or a combination of any thereof: Provided, That, in fixing the type and terms of such financial protection, the Commission shall be guided by the objectives of assuring to potential victims of a nuclear incident adequate and effective compensation without imposing an unreasonable burden on the installation operator.
In accordance with such regulations as the Commission may issue, the appropriate installation operator shall provide the carrier which furnishes carriage of nuclear material with a certificate issued by or on behalf of the insurer or other financial guarantor furnishing the financial security under Section forty-six. The certificate shall be in such form and contain such information as may be prescribed by the Commission's regulations, including the name and address of the appropriate installation operator, the amount, type and duration of the security and a statement that such information may not be disputed by the person for whom or on whose behalf the certificate was issued. The certificate shall indicate the nuclear material in respect to which the security applies and shall include also a verification by the Commission that the person designated is an appropriate installation operator within the meaning of the provisions of this Part VII.
Whenever both nuclear damage and damage other than nuclear damage have been caused by a nuclear incident or jointly by a nuclear incident and one or more other occurrences, such other damage shall, to the extent that it is not reasonably separable from the nuclear damage be deemed, for purposes of this Part, to be nuclear damage caused by that nuclear incident. Where, however, damage is caused jointly by a nuclear incident covered by this Part VII by an emission of ionizing radiation not covered by this Part, nothing in this Part shall limit or otherwise affect the liability, either as regards any persons suffering nuclear damage or by way of recourse or contribution, of any person who may be held liable in connection with that emission of ionizing radiation.
Where nuclear damage engages the liability of more than one installation operator, the following rules shall apply:
Subject to the provision of Section forty-nine, where several nuclear installations of one and the same installation operator are involved in one nuclear incident, such installation operator shall be liable in respect of each nuclear installation involved up to the amount established in Section forty-two hereof.
The Commission may, subject to such terms and conditions as it may by regulation or order prescribe, designate a carrier of nuclear material or a person handling radioactive waste, at his request and with the consent of the installation operator concerned, as installation operator in the place of that installation operator in respect of such nuclear material or radioactive waste respectively. Upon such designation, such carrier or such person shall be considered as an installation operator for the purpose of this Part VII.
The Government, through the Commission, shall indemnify the installation operator liable and shall provide the necessary funds for the payment of claims for compensation for nuclear damage which have been established against the operator to the extent that the yield of insurance or other financial security is inadequate to satisfy such claims: Provided, That the obligation of the Government under this section, together with the yield of insurance or other financial security, shall not in the aggregate exceed the maximum amount established in Section forty-two for any nuclear incident. The Republic of the Philippines acting through such officer as may be designated by the President shall enter into agreements of indemnification with contractors or suppliers of goods or services for an atomic energy facility owned or operated by the government, its agencies, instrumentalities or corporations owned or controlled by the government pursuant to which the government agrees to indemnify and hold such contractors or suppliers harmless from any loss or liability arising out of or in relation to a nuclear incident occurring in the Philippines in excess of the yield of the insurance or other security herein set forth: Provided, however, that such indemnity shall in no case exceed the amount of Philippine pesos which is equivalent to one hundred twenty million U.S. dollars. [As amended by Section 5 of P.D. No. 1484.]
The Court of First Instance situated in the place where the nuclear incident occurs shall have exclusive jurisdiction over claims for compensation for nuclear damage under this Act.
When, after the occurrence of a nuclear incident, it appears that the Government will have to pay indemnity pursuant to the provisions of Section fifty-two hereof, the Court having jurisdiction over the claims for compensation arising from the nuclear incident shall allow the Commission, upon its petition, to intervene in the proceedings, at any time before final judgment.
After the occurrence of a nuclear incident for which it appears compensation may be payable under Part VII of this Act, the Commission may adopt such measures as may be appropriate to determine the persons who were or might have been exposed to radiation resulting from such nuclear incident, which measures may include a summons to such persons to submit themselves to examination before such authority or body as shall be designated by the Commission within three months from the date of summons. In determining the amount of damages or the right to recover damages, the Court may, in its discretion, take into account the inexcusable failure of the claimant to fulfill or comply with the foregoing obligation.
The Commission shall make an investigation of the cause and extent of any nuclear incident for which it appears compensation may be payable under this Act and its findings shall be made available to the public, to the parties involved and to the Courts.
The Commission may determine that several nuclear installations of one installation operator which are located at the same site shall be considered as a single nuclear installation for purposes of this Part VII.
Nothing herein contained shall be construed to require the government or any government agency or instrumentality operating a nuclear installation to secure and maintain financial security to cover its liability as installation operator.
It shall be unlawful for any insurer or other financial guarantor to suspend or cancel the insurance or other financial security provided pursuant to the provisions of this Act without giving such prior notice in writing as may be required by the Commission's regulations.
Persons entitled to compensation for nuclear damage under this Act may, at their option, bring the action for recovery of such compensation against the operator liable or against the insurer or other persons furnishing financial security as required by this Act.
Rights of compensation under this Act shall prescribe after ten years from the date of the nuclear incident. Furthermore, actions for compensation under this Act shall be barred unless brought within three years from the date on which the person suffering nuclear damage had knowledge or should have had knowledge of the damage and of the installation operator liable for the damage: Provided, however, That any person who claims to have suffered nuclear damage and who has brought an action for compensation within the period applicable pursuant to this section may amend his claim to take into account any aggravation of the damage, even after the expiry of that period: Provided further, That final judgment has not been entered in the case.
Where nuclear damage is caused by a nuclear incident involving nuclear material which at the time of the nuclear incident was stolen, lost, jettisoned or abandoned, the period established pursuant to Section sixty-two of this Act shall be computed from the date of that nuclear incident, but the period shall in no case exceed a period of twenty years from the date of the theft, loss, jettison or abandonment.
Any person who wilfully violates, attempts to violate, or conspires to violate, any provision of Section six or sixteen of this Act, shall upon conviction thereof, suffer the penalty of imprisonment of not more than five years or a fine of not more than Ten thousand pesos (P1O,OOO.OO) or both.
Any person who shall wilfully violate, attempt to violate, or conspire to violate any provision of this Act for which no penalty is specifically provided or of any regulation, order or license issued under the authority of this Act shall, upon conviction thereof, suffer the penalty of imprisonment of not more than two years or a fine of not more than Five thousand pesos (P5,OOO.OO), or both.
If any provision or part of a provision of this Act or the application of such provision to any person or circumstance is held invalid, the remainder of the provisions of this Act or the application of such provision to other persons or circumstances shall not be affected thereby.
All Acts, executive orders, administrative orders, proclamations, rules and regulations inconsistent with any provisions of this Act are repealed or modified accordingly.
This Act shall take effect on the tenth day following its publication in the Official Gazette.
Approved, GIL J. PUYAT President of the Senate This Act, which originated in the Senate was finally passed by the same on May 8, 1968. ELISEO M. TENZA Secretary of the Senate J. B. LAUREL, JR. Speaker of the House of Representatives Finally passed by the House of Representatives on May 7, 1968. INOCENCIO B. PAREJA Secretary of the House of Representatives Approved: June 15, 1968 FERDINAND E. MARCOS President of the Philippines NOTES: Published in the Official Gazette on May 5, 1969. The Amendatory Act, Presidential Decree No. 1484, took effect upon its approval on June 11, 1978.