Nuclear liability limits raised to $1.2B

Summary#

This is a proposed change, published in the Canada Gazette on May 2, 2026, to amend the Nuclear Liability and Compensation Act and the Nuclear Liability and Compensation Regulations. The main practical effects would be to raise the operator liability limit for large reactors from $1 billion to $1.2 billion, set a new, lower liability formula for small modular reactors (SMRs), and add the Darlington New Nuclear Project (DNNP) to the list of designated sites. Most of the changes would take effect on January 1, 2027 (with the DNNP listing coming into force when its operating licence is issued). This is a proposal open for comment for 30 days after publication.

What it does#

• Raises the maximum operator liability for large power reactors from $1 billion to $1.2 billion (increase meant to reflect inflation since 2020).
• Creates a new class and formula for commercial SMRs (reactors up to 1,400 MW thermal): liability = A × $600,000 + $60,000,000, where A is the reactor’s thermal power in MW.
• Increases liability limits for other, lower‑risk installations (to account for inflation). Examples include:
  • Reactor of over 7 MW class: $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 class: $1.6 million
  • Radioactive waste management facility: $1.3 million
  • Reactor of less than 1 MW class: $0.6 million
• Adds the DNNP site to the schedule of designated installations as a separate item. That listing would only come into force when the project receives an operating licence from the regulator.
• Makes a minor technical wording change (replacing “thermal output” with “thermal power” in the English definitions).

Who's affected#

• Operators of Canada’s nuclear sites, including current large-reactor operators such as Ontario Power Generation, Bruce Power, and NB Power.
• Organizations that run other nuclear facilities, for example Cameco Corporation, Canadian Nuclear Laboratories, McMaster University, and École Polytechnique.
• Insurers that provide nuclear liability coverage and the specialized nuclear insurance market.
• Future SMR developers and operators (they get a specific liability formula and could pay lower premiums than if treated as large reactors).
• Nearby electricity customers (ratepayers) in provinces with nuclear power — the government estimates a very small pass‑through to households (about less than $0.50 per year in Ontario and under $1 annually in New Brunswick).
• The federal government, which indemnifies operators of lower‑risk installations for amounts above operator limits up to the statutory ceiling.

Why it matters#

• It keeps the liability ceiling roughly in line with inflation so more compensation would be available after a rare nuclear incident. The total available under the Act would rise by $200 million to $1.2 billion.
• It creates a clear, risk‑adjusted approach for SMRs. That reduces uncertainty for companies planning SMR projects and for insurers, and supports SMR deployment (the first SMR tied to DNNP is expected as early as 2030, subject to licensing).
• It will likely raise insurance premiums for some operators. The government’s analysis estimates an annualized net cost to operators and insurers of about $1.5 million to $2 million over 10 years, dropping to around $1 million once SMRs begin operating.
• For the public, the changes mean slightly higher industry costs but better clarity about who pays and more money available for compensation if something goes wrong. The proposed higher ceiling also aligns Canada more closely with international nuclear liability standards and can affect access to international supplementary compensation.
• These are proposed regulations, not final. Comments were invited for 30 days after the Canada Gazette notice, and the effective date for most amendments is January 1, 2027 (with the DNNP listing tied to its operating licence).