Nuclear energy has always been important to Saskatchewan, given our vast reserves of Uranium. It has become even more of an issue lately as the provincial government explores the feasibility of actually generating the power in this province.

It is a gross understatement to say that this raises many issues. We could fill this article, and many more, with a discussion of only some of those issues, but we'll focus on one in particular for the time being: liability.

The federal Nuclear Liability Act currently regulates liability for nuclear incidents. On March 24, 2009, the federal government re-introduced Bill C-20 into Parliament which proposes to replace the Nuclear Liability Act with a specific civil liability regime for nuclear incidents.

Although Saskatchewan has control over the production, distribution and transmission of electricity in our province, this does not extend to nuclear power which is federally regulated. The federal government is moving toward ensuring our nuclear liability legislation is within generally accepted principles of international nuclear liability regimes. In the future, this should allow Canada to sign on to an international nuclear liability conventions which would help in Saskatchewan to resolve thorny cross-border liability and jurisdictional issues which may arise with future nuclear developments in the province.

Bill C-20 proposes that operators of nuclear installations be exclusively liable for any nuclear incident (including personal injury and property damage). However, the major change in Bill C-20 is the significant increase in the nuclear operator's maximum liability from $75 million Canadian dollars to $650 million. The liability of an operator for damage resulting from a nuclear incident is limited to $650 million - in most cases the operator can not be liable for more. However, an operator must maintain insurance of at least $650 million to compensate persons who suffer damage caused by a nuclear incident. If the operator cannot find a private insurer, the Government of Canada will provide reinsurance through a special account called the Nuclear Liability Reinsurance Account in order to guarantee coverage of at least $650 million.

Finland has extensive and long-standing nuclear liability legislation. Their Nuclear Liability Act, like its Canadian counterpart, notes that liability for damage in the event of a nuclear incident lies exclusively with the operator of a nuclear installation. Under Finnish law, nuclear operators must have a minimum amount of 700 million euros (about $1.2 billion Canadian) in insurance coverage or provide equivalent financial security. Anyone transporting nuclear substances must also carry at least 80 million euros ($133 million Canadian) in insurance coverage or provide the equivalent financial security.

In the United States, there is a very significant upper limit of liability of $11.9 billion US dollars.

In France, which generates 78% of their electricity from nuclear sources, the maximum liability for an operator of a nuclear installation is 90 million euros ($150 million Canadian). Anyone transporting nuclear substances must also carry at least 23 million euros ($38 million Canadian) in insurance coverage or provide equivalent financial security.

Canada has taken an innovative approach to adjudicate nuclear liability claims. Bill C-20 establishes a dedicated tribunal which has particular expertise in nuclear liability matters and which will hear and decide liability claims for nuclear incidents. This will assist in ensuring that claims in Canada are adjudicated by those with specialized technical knowledge about nuclear technology and the law of nuclear liability.

In Finland, there is no special tribunal to hear claims and the regular Finnish courts hear compensation claims. In the United States, liability is determined by the tort law of the state where the nuclear incident occurs and there is no special tribunal to hear and decide claims. In France, French courts generally hear nuclear liability claims.

Although nuclear energy can be contentious, opponents of nuclear energy here in Saskatchewan should be pleased with the increase in the maximum liability for operators. Developers of nuclear facilities will be pleased that Canadian law is being harmonized with the laws of other jurisdictions which will make building nuclear facilities more efficient, cheaper and ultimately safer. Operators of nuclear facilities in Canada will be able to overcome difficulties they have had getting private insurers to provide coverage for damage resulting from nuclear incidents. The establishment of such a regime makes it possible to fill this gap and provide coverage for such risks.