Statutory Five-Year Review of the Maximum Liability Limit
Under the Nuclear Liability and Compensation Act (NLCA), the Minister must review the maximum liability limit every five years. This limit is applicable to the operators of large power reactors and is currently set at C$1.2 billion. The review must have regard to the following:
- Changes in the Consumer Price Index, as published by Statistics Canada under the authority of the Statistics Act;
- Financial security requirements under international agreements respecting nuclear liability; and
- Any other considerations that the Minister considers relevant.
2021 Five-Year Review
The NLCA came into force on January 1, 2017, and provided for a phased increase in nuclear civil liability for operators of large power reactors from C$650 million to C$1 billion between 2017 and 2020. The C$1 billion liability limit came into effect on January 1, 2020.
Natural Resources Canada undertook an analysis of the above five-year review criteria and engaged with the public and interested parties beginning in early 2021. Building on Canada’s experience, regulatory leadership, and global reputation in the nuclear space, the results of the first five-year review were published in January 2022. Views and perspectives from this statutory five-year review indicated that the operators’ liability limit for power reactors be increased to account for inflation, and that a review of the financial security requirements for lower-risk installations be undertaken to determine if they remain appropriate.
To read the full report, visit Findings from the 2021 five-year review of the third party nuclear liability limit under the Nuclear Liability and Compensation Act.
2026 Five-Year Review and Regulatory Amendments
Taking into consideration feedback received during the 2021 Five-Year Review and in the period since, Natural Resources Canada undertook the 2026 Five-Year Review of the maximum operator liability limit, applicable to large power reactors, in parallel to the review and regulatory amendment of the Nuclear Liability and Compensation Act and Regulations.
Natural Resources Canada developed regulatory amendments to the Act and Regulations to update the liability limits for operators of large power reactors, as well as for operators of lower-risk installations such as nuclear fuel, fuel waste and radioactive waste facilities, ensuring compensation coverage keeps pace with inflation, continues to protect Canadians in the event of a nuclear incident, and aligns with international best practice.
The amendments also contribute to the enabling framework for the deployment of the Darlington New Nuclear Project in Bowmanville, Ontario, which is among the first major projects announced by Prime Minister Carney on September 11, 2025. With the introduction of small modular reactors (SMRs) in Canada, the amendments establish a new nuclear installation class with liability limits commensurate with the lower risk profile of SMRs.
A full list of the liability limits applicable to each designated nuclear installation can be found under Nuclear installations, operators and liability limits.
Under the Act, the Government of Canada indemnifies operators of SMRs and lower-risk installations for damages above their liability limit, up to the full maximum set out in subsection 24(1) of the Act, which is $1.2 billion as of January 1, 2027. This approach ensures Canadians are covered, regardless of the type of nuclear installation involved.
The amendments were announced in the Forward Regulatory Plan: 2026 to 2028 and were pre-published in the Canada Gazette, Part I, on May 2, 2026, for a 30-day public comment period that ended on June 1, 2026. The next five-year review and regulatory amendments process will take place in 2031 or earlier, as required.
The coming into force of the amendments is January 1, 2027, except the designation of the Darlington New Nuclear Project, which is the date on which the Canadian Nuclear Safety Commission issues an operating licence for the project.