Radioactive Dispersal Devices and Liability Determination*

The economic impact of a significant radiological dispersal device (RDD) event could be in the billions or tens of billions of dollars and include costs related to radiological emergency response and medical services, evacuation and/or relocation, infrastructure decontamination, demolition, and replacement, environmental remediation and lost business revenues (including agricultural restrictions), among others. However, the way in which such costs would be distributed among public and private sector stakeholders is unclear. While there is a relatively well-defined legal and policy context for the distribution of costs related to large-scale natural disasters, there is much less precedent for addressing events caused by a malicious actor, let alone one involving an officially defined “weapon of mass destruction.” As a result of these uncertainties, domestic and international experts have recently begun to consider the potential legal impacts resulting from an RDD, including the likely assignment of liability for third-party damages. The outcome of these considerations –including policy initiatives or changes in user perceptions related to the cost of using sealed sources—will impact domestic and international sealed source management and disposal decisions. To help inform these conversations, the authors will describe the emergence of concerns regarding potential third-party and cost recovery liabilities in the event of a radiological incident. The authors will explain the need for greater clarity with regard to the key areas of uncertainty, with a focus on the U.S. legal context. The authors will then describe industry models and other policy mechanisms currently under consideration to address liability challenges.