Review and Proposed Amendments of Liability Limits

Statutory Five-Year Review of the Maximum Limit for Operators (2026)

Under the Nuclear Liability and Compensation Act (NLCA), the Minister must review the maximum liability limit for operators, currently set at C$1 billion, every five years. This limit is applicable to the operators of power reactors. 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.

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.

Having received this feedback, Natural Resources Canada is undertaking the 2026 five-year review of the maximum operator liability limit, applicable to large power reactors, in parallel to the review and amendment of liability limits under the Nuclear Liability and Compensation Regulations (Regulations). This process is anticipated to be completed by the end of 2026.

Proposed Regulatory Amendments to the Nuclear Liability and Compensation Act and Regulations

Natural Resources Canada is developing proposed regulatory amendments to the Act and Regulations to update the liability limits for operators of 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.

With the introduction of small modular reactors (SMRs) in Canada, the proposed amendments would also establish a new nuclear installation class with liability limits commensurate with the lower risk profile of SMRs. Under the Act, the Government of Canada would indemnify operators of SMRs, as needed, for damages above their liability limit, up to the full maximum set out in subsection 24(1) of the Act, which is proposed to increase from $1 billion to $1.2 billion. This is the approach that is currently taken for lower-risk nuclear installations, and it ensures Canadians are covered, regardless of the type of nuclear installation involved.

The proposed amendments would contribute to the enabling framework for the deployment of the Darlington New Nuclear Project for SMRs in Bowmanville, Ontario. This project is among the first major projects announced by Prime Minister Carney on September 11, 2025.

Further information on this initiative can be found in the Forward Regulatory Plan.

Timeline: Proposed Regulatory Amendments to Nuclear Liability and Compensation Act and Regulations

Timeline: pre-publication Spring 2026; final publication Fall 2026 for proposed Nuclear Liability and Compensation Act amendments

Opportunity for your feedback

Pre-publication of proposed regulatory amendments in Canada Gazette, Part I (30 days)

The pre-publication of proposed amendments set out in the Canada Gazette, Part I, includes a Regulatory Impact Analysis Statement (RIAS). Feedback on the proposed amendments, including proposed amendments to liability limits, may be provided from May 2, 2026 to June 1, 2026.

Send us your feedback

All comments on the proposed amendments must be submitted through the Canada Gazette portal. Visit the following link for information on how to submit your comments:

Find out more about nuclear liability in Canada

 
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