AN ACT PROVIDING FOR THE LICENSING AND REGULATION OF ATOMIC ENERGY FACILITIES AND MATERIALS

Case Overview and Summary

REPUBLIC ACT No. 5207 (as amended by PD 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.

PART I - General Provisions
• Declares the policy to encourage and promote the development and use of atomic energy for peaceful purposes, subject to control by the State to protect public health and safety, and fulfill international obligations. (Section 2)
• Defines key terms such as "atomic energy facility", "atomic energy material", "nuclear damage", "nuclear incident", "nuclear installation", "nuclear materials", "nuclear reactor", "radioactive products or waste", "source material", and "special fissionable material". (Section 3)

PART II - General Authority of the Commission
• Authorizes the Philippine Atomic Energy Commission to establish regulations and orders for the protection of public health and safety, ensure authorized use of atomic energy facilities and materials, license and regulate imports/exports, issue licenses, modify/revoke licenses, inspect licensed activities, hold hearings and investigations, establish advisory boards, charge fees, and carry out the provisions of the Act. (Section 4)
• Requires the Commission to impose minimum requirements consistent with its obligations to protect public health and safety, and promote national interest. (Section 5)

PART III - Regulation and Licensing of Atomic Energy Facilities
• Prohibits the transfer, construction, receipt, ownership, possession, operation, import or export of any atomic energy facility without a license from the Commission. (Section 6)
• Requires license applications to include technical and financial qualifications, citizenship, proposed facility details, operational procedures, and other information deemed necessary by the Commission. (Section 7)
• Specifies criteria for issuing licenses, including consistency with the Act's policies, technical and financial qualifications, no undue risk to public health and safety, and financial security for liability. (Section 8)
• Prohibits issuing licenses to aliens, foreign corporations, or foreign governments, unless at least 60% of the capital stock is owned by Filipino citizens. (Section 9)
• Allows the Commission to issue provisional licenses for construction if there is reasonable assurance of safety, followed by licenses to operate upon completion and compliance with regulations. (Sections 10 and 11)
• Requires the establishment of an Advisory Board on Safety of Atomic Energy Facilities and Materials to assist and advise the Commission on health and safety matters. (Section 12)
• Allows the Commission to take possession and operate an atomic energy facility if the license is revoked and continued operation is necessary, with just compensation. (Section 13)
• Requires compliance with other laws for commercial power facilities, but exempts nuclear fuel imports from taxes and duties for 10 years. (Section 14)
• Authorizes the Commission to prescribe classes of facilities requiring individual operators' licenses, determine qualifications, issue licenses, and suspend or revoke licenses. (Section 15)

PART IV - Regulation and Licensing of Atomic Energy Materials
• Prohibits the manufacture, production, receipt, possession, ownership, use, transfer, import or export of any atomic energy material without a license from the Commission, except for mining and processing of radioactive ores governed by mining laws. (Section 16)
• Allows the Commission to exempt small quantities of low-activity atomic energy materials and users from licensing requirements if there is no undue risk to public health and safety. (Section 17)
• Requires compliance with the Commission's regulations and orders for the safe transport of atomic energy materials. (Section 18)
• Requires license applications to contain information deemed necessary by the Commission, including technical and financial qualifications, and citizenship. (Section 19)
• Specifies criteria for issuing licenses, including consistency with the Act's policies, technical and financial qualifications, no undue risk to public health and safety, and financial security for liability. (Section 20)
• Gives the government the right to acquire any special fissionable material owned by a person in the Philippines for a fair and reasonable price if necessary for atomic energy development or national interest. (Section 21)

PART V - Common Provisions for Regulation of Atomic Energy Facilities and Materials
• Requires licenses to be in the form prescribed by the Commission and subject to the provisions of the Act and regulations. (Section 22)
• Limits the license period to a maximum of 35 years, subject to renewal. (Section 23)
• Prohibits the transfer, assignment, encumbrance, or disposal of licenses without the Commission's consent. (Section 24)
• Subjects license terms and conditions to amendment or modification due to changes in the Act or regulations. (Section 25)
• Authorizes the Commission to require additional information, inspect premises, and order measures to eliminate or protect against situations endangering life, health or property. (Section 26)
• Allows the suspension or revocation of licenses for material false statements, non-compliance with the Act or regulations, or failure to construct or operate facilities in accordance with the license. (Section 27)
• Requires the Commission or licensee to take protective measures upon suspension, revocation, or expiration of a license to protect public health and safety or national interest. (Section 28)
• Exempts the Commission's activities from licensing requirements. (Section 29)
• Allows the Commission to combine applications and licenses for multiple activities, and require applications or statements to be made under oath or affirmation. (Section 30)

PART VI - Administrative Procedure and Judicial Review
• Requires the Commission to hold hearings and admit interested parties in proceedings for granting, suspending, revoking, or amending licenses, or issuing orders under Sections 13, 21, 26, or 28. (Section 31)
• Requires regulations to be effective 15 days after publication in the Official Gazette, unless immediate effect is necessary for public health and safety or national interest. (Section 32)
• Prohibits the admission of licensee incident reports as evidence in damage suits. (Section 33)
• Establishes rules for hearing procedures, including the exclusion of irrelevant or repetitious evidence. (Section 34)
• Requires the Commission's orders and decisions to be in writing, stating facts, issues, and reasons, and made available to the public. (Section 35)
• Grants the Court of Appeals the power of judicial review over the Commission's final orders or decisions, with the possibility of further review by the Supreme Court on questions of law. (Section 36)

PART VII - Liability for Nuclear Damage
• Holds the installation operator liable for nuclear damages caused by a nuclear incident in their installation, involving nuclear material from their installation, or involving nuclear material sent to their installation. (Section 37)
• Establishes the installation operator's liability as absolute and exclusive, except in cases of grave natural disasters or intentional acts by individuals. (Section 38)
• Allows the installation operator to have recourse against other installation operators based on written contracts, or against individuals who acted with intent to cause damage. (Section 39)
• Allows the court to relieve the installation operator from liability if the claimant was grossly negligent or acted with intent to cause damage. (Section 40)
• Exempts the installation operator from liability for nuclear damages caused by acts of armed conflict, hostilities, civil war, or insurrection. (Section 41)
• Limits the installation operator's liability to an amount equivalent to $5 million USD for any one nuclear incident, exclusive of interest or costs awarded by the court. (Section 42)
• Excludes the installation operator's liability for damage to the nuclear installation itself, property on the site, or the means of transport carrying the nuclear material. (Section 43)
• Preserves the liability of individuals for intentional acts causing nuclear damage, and the installation operator's liability outside the Act. (Section 44)
• Allows the Commission to exclude small quantities of nuclear material from the liability provisions by regulation, within limits established by the International Atomic Energy Agency. (Section 45)
• Requires the installation operator to secure and maintain insurance or other financial security covering liability for nuclear damage, as prescribed by the Commission's regulations. (Section 46)
• Requires the installation operator to provide the carrier with a certificate issued by the insurer or financial guarantor, containing information prescribed by the Commission's regulations. (Section 47)
• Deems non-nuclear damage inseparable from nuclear damage as nuclear damage for the purposes of the Act. (Section 48)
• Establishes rules for joint and several liability when multiple installation operators are involved in a nuclear incident. (Section 49)
• Limits the liability of an installation operator with multiple installations involved in one nuclear incident to the amount established in Section 42 for each installation. (Section 50)
• Allows the Commission to designate a carrier or person handling radioactive waste as the installation operator, subject to terms and conditions prescribed by regulation or order. (Section 51)
• Requires the government, through the Commission, to indemnify the installation operator for claims exceeding the financial security, up to the maximum amount established in Section 42. (Section 52)
• Allows the court to issue orders for equitable distribution of compensation if claims exceed the liability limit, and requires the Commission to report to Congress with recommendations for additional funds. (Section 53)
• Grants exclusive jurisdiction over claims for nuclear damage compensation to the Court of First Instance where the nuclear incident occurred. (Section 54)
• Allows the Commission to intervene in court proceedings if the government will have to pay indemnity. (Section 55)
• Authorizes the Commission to summon persons who may have been exposed to radiation for examination, and allows the court to consider failure to comply in determining damages. (Section 56)
• Requires the Commission to investigate the cause and extent of any nuclear incident for which compensation may be payable, and make its findings available. (Section 57)
• Allows the Commission to determine that multiple nuclear installations of one operator at the same site shall be considered as a single installation for liability purposes. (Section 58)
• Exempts the government and its agencies or instrumentalities from the requirement to secure financial security as installation operators. (Section 59)
• Prohibits insurers or financial guarantors from suspending or canceling financial security without prior notice as required by the Commission's regulations. (Section 60)
• Allows persons entitled to compensation to bring actions against the liable operator or the insurer or financial guarantor. (Section 61)
• Establishes a 10-year prescription period for rights of compensation from the date of the nuclear incident, and a 3-year period for actions for compensation from the date of knowledge of the damage and liable operator, with exceptions for aggravation of damage. (Section 62)
• Establishes a 20-year prescription period for nuclear damage caused by stolen, lost, jettisoned or abandoned nuclear material, from the date of the incident or the date of theft, loss, jettison or abandonment, whichever is earlier. (Section 63)

PART VIII - Penal Provisions
• Imposes penalties of imprisonment up to 5 years or a fine up to ₱10,000, or both, for willful violation, attempted violation, or conspiracy to violate Sections 6 or 16 (licensing requirements for atomic energy facilities and materials). (Section 64)
• Imposes penalties of imprisonment up to 2 years or a fine up to ₱5,000, or both, for willful violation, attempted violation, or conspiracy to violate any other provision of the Act or regulations, orders, or licenses issued under the Act. (Section 65)

PART IX - Final Provisions
• Includes a separability clause. (Section 66)
• Repeals or modifies inconsistent laws, executive orders, administrative orders, proclamations, rules and regulations. (Section 67)
• Establishes the effectivity date as the 10th day following publication in the Official Gazette. (Section 68)