Nuclear liability limits raised to $1.2B

Summary#

These are proposed changes to the Nuclear Liability and Compensation Act and the Nuclear Liability and Compensation Regulations published as a Canada Gazette notice on May 2, 2026. In plain terms, the proposal would raise the maximum operator liability for large reactors from $1 billion to $1.2 billion, set a new, lower liability class and formula for commercial small modular reactors (SMRs), and list the Darlington New Nuclear Project (DNNP) as a separate nuclear installation when it receives an operating licence. The rules are proposed, not yet in force, and take effect on January 1, 2027 (with the DNNP entry coming into force when licensed).

What it does#

• Raises the maximum operator liability for power reactors to $1.2 billion (up from $1 billion).
• Creates a new class called "Commercial Reactor of 1,400 MW or less" and sets its liability by a formula: A × $600,000 + $60,000,000, where A is the reactor’s thermal power in MW.
• Increases liability limits for lower‑risk installations (to reflect inflation). New amounts include:
  • Reactor of over 7 MW: $226.8 million
  • Nuclear Fuel Waste Processing Facility: $50.4 million
  • Nuclear Fuel Waste Management Facility: $16.4 million
  • Nuclear Fuel Conversion Facility: $4.2 million
  • Nuclear Fuel Production Facility: $2.9 million
  • Reactor of 1 MW to 7 MW: $1.6 million
  • Radioactive Waste Management Facility: $1.3 million
  • Reactor of less than 1 MW: $0.6 million
• Adds the Darlington New Nuclear Project (DNNP) to the schedule of designated installations as a separate site; that listing only becomes active once the DNNP receives an operating licence from the regulator.
• Makes a minor technical wording change to use “thermal power” instead of “thermal output” in the English definitions.
• These proposed amendments are intended to come into force on January 1, 2027, except the DNNP listing, which comes into force upon licensing.
• This is a proposed regulation and was opened for public representations for 30 days after the Canada Gazette notice.

Who's affected#

• Operators of large nuclear power plants such as Ontario Power Generation, Bruce Power, and NB Power — they must hold higher financial security to match the new limits.
• Future SMR operators (for example the planned DNNP, expected to be operated by Ontario Power Generation) — they would get a lower, size‑based liability amount under the new SMR class.
• Operators of research reactors and fuel and waste facilities (including organizations such as Canadian Nuclear Laboratories, Cameco Corporation, McMaster University, and École Polytechnique).
• Insurers that provide nuclear liability coverage and approved insurers under the Act.
• The federal government, which would remain responsible for indemnifying amounts above an operator’s lower limit up to the national ceiling.
• Electricity ratepayers in provinces with nuclear plants (mainly Ontario and New Brunswick), who might see a small portion of higher insurance costs passed through to bills.
• Some detailed insurance premium figures are confidential and not publicly disclosed in the notice.

Why it matters#

• The change raises total available compensation after a nuclear incident by $200 million (from $1 billion to $1.2 billion). That means more money would be available to pay claims before any federal assistance is needed.
• It aims to keep operator liability amounts in line with inflation and international practice (hitting levels that relate to 600 million SDRs, roughly $1.2 billion), which affects Canada’s standing under international nuclear liability agreements.
• For SMRs, the new formula is meant to match liability to size and risk. That can lower insurance costs for SMR operators and make project costs more predictable, which matters for developers and for provinces planning SMR deployment.
• Industry will face higher insurance premiums overall. The government’s analysis estimates an annualized net cost to operators of about $1.5 million to $2 million over a 10‑year span, dropping to about $1 million after SMR limits take effect. Specific premium impacts were not publicly released.
• Household impacts are described as very small: the analysis estimates an increase of under $0.50 per year per Ontario household and under $1 per year per New Brunswick household, if insurers pass costs through to consumers.
• The DNNP listing only becomes effective once a regulator issues an operating licence — so the change does not immediately alter on‑site operations or construction.