In the latest evidence of deteriorating relations between China and North Korea, the state-owned Bank of China has stopped dealing with North Korea's Foreign Exchange Bank. This is in accordance with US financial sanctions imposed last March. The US will not deal with any financial institution that does business with North Korea. On this past week's episode of LinkAsia, we aired a piece from Japan's public broadcaster, NHK, who covered the story on May 7.

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Reporter:
Reuters News Agency says the state-owned Chinese bank notified North Korea's foreign trade bank that it was stopping all transactions. US officials hit the North Korean bank with sanctions in March banning any exchanges with US firms or individuals. They accused the bank of helping to finance Pyongyang's nuclear weapons program. Officials at Bank of China gave no reason why they were closing the North Korean account, and state run media have not reported on the story.

Going without insurance is described as "going naked" in insurance industry lingo. Going without insurance for the worst hazards in the nuclear power industry is business as usual.

One need not look back very far to see the problem. In March 2011, the Fukushima-Daiichi nuclear power plant disaster, triggered by an earthquake followed by a tsunami that overwhelmed all of Japan's safeguards, melted down three reactors, displaced 160,000 people and caused an estimated $250 billion in damages and other still-unfolding economic consequences.

Today, in the United States, we have 104 operating nuclear plants producing electricity. The owners, operators, and government regulators who oversee them say an event like Fukushima will not happen here. And even if it did, they insist, there is enough liability insurance in place to cover the damages. The actual amount of that insurance coverage: just $12.6 billion.

You don't need an advanced degree in calculus or risk analysis to see that something doesn't add up, and to start feeling a bit...naked. But when it comes to nuclear insurance, naked is the fashion designed for the American public.

A catastrophic accident in the US could cost way more than $12.6 billion. A worst-case scenario study in 1997 by the Brookhaven National Laboratory estimated that a major accident could cost $566 billion in damages and cause 143,000 possible deaths. Another such study, by Sandia National Laboratories in 1982, calculated the possible costs at $314 billion. Adjusted for inflation, that would put both estimates close to the trillion dollar range today. So $12.6 billion wouldn't cover much.

After Fukushima, which was only the second worst such accident behind the 1986 Chernobyl meltdown in the former Soviet Union, the US Nuclear Regulatory Commission and its staff scrambled to reappraise the adequacy of their own safety regimens for nuclear power plants. And they re-examined the sufficiency of the limited insurance available to indemnify the American people against property damage, loss of life and other economic consequences of nuclear accidents. Then the NRC hastened to publish the "lessons learned" from the Japanese catastrophe to show they were on top of things. Though the previously existing US system had been described as virtually fail-safe, federal regulators found that improvements were possible after all and ordered that they be made. 

But one not so small thing remained unchanged, post-Fukushima: the tightly capped insurance system. Of course, raising the amount of insurance required to operate nuclear plants would be expensive. The nuclear industry, which provides 20 percent of all of the country's electrical power, is not eager to incur additional expenses like higher insurance premiums for more coverage. Oh, but the nuclear power industry doesn't actually pay premiums on most of the insurance coverage that supposedly is available (more about that later.) 

First, a little history. After solving the scientific and technological issues of splitting the atom, the biggest problem the nuclear industry faced in its infancy was obtaining accident insurance coverage. Without insurance, investors were unwilling to provide start-up capital. But the insurance industry was nervous. After all, this was back in the 1950s, and who knew then how safe -- or dangerous -- this new power source might turn out to be? So insurers were refusing to assume unlimited levels of liability.

But President Dwight D. Eisenhower was determined to develop "Atoms for Peace," and he worked with a cooperative Congress to remove all roadblocks. Their solution to the insurance obstacle was a new federal law, the Price-Anderson Act of 1957, which simply imposed federally-decreed limits on liability from accidents at non-military nuclear facilities. The law, amended several times since then, allowed the creation of insurance pools to cover accidents. Today the plan has two tiers. The first tier is a $375 million insurance policy for which each nuclear plant must pay premiums ranging between $500,000 and $2 million a year, depending on plant size and other factors. If a plant has an accident and $375 million is not sufficient to cover resulting damages the second tier kicks in and all the other plant operators around the country must chip in up to $111 million each to indemnify victims until the $12.6 billion cap is reached.

By the way, if you live near a nuclear plant, or even many miles away, you cannot buy your own private insurance policy to protect your home against nuclear accidents, thanks to the Price-Anderson law.

The nuclear industry and the insurance industry both understood the hard realities of the risk. In testimony to the Senate Energy and Natural Resources Committee on May 24, 2001, John L. Quattrocchi, then senior vice president for underwriting at the American Nuclear Insurers pool, put it bluntly: "The simple fact is there is always a limit on liability -- that limit equal to the assets of the company at fault." 
     
Meanwhile, corporations that own nuclear plants have devised spin-off schemes, erecting legal firewalls to protect the parent company if their limited-liability subsidiary actually operating the plant goes under as the result of an accident.

Pennsylvania's Three Mile Island nuclear power plant suffered a partial meltdown in March, 1979. Victor Gilinsky was the senior sitting member on the Nuclear Regulatory Commission when that accident happened. According to Gilinsky, now retired, "There is no insurance for an extreme event."   
 
Now, as scientists warn of climate change, rising sea levels, stronger hurricanes and a host of other environmental threats related to global warming it might not be unreasonable to re-examine protections afforded the public. Small-scale accidents at nuclear plants continue to happen. A big one, like Fukushima or worse, may have a low probability level. But it isn't impossible. 

True, nuclear plants contribute little or no greenhouse gas emissions to the overburdened atmosphere compared to the coal-fired plants that add so much to global warming. But there is another factor to consider when weighing the nuclear option. Originally licensed for 40 years of operational life, most US nuclear plants are approaching or have already exceeded that period. So far, 73 such plants have been given 20-year extensions, and with retrofitting and extensive upgrades, some are expected to function to an age of 80 years.  Lets all keep our fingers crossed.

 

 

   

Miles Benson is a correspondent for Link TV's Earth Focus. He has a distinguished career as a daily print journalist. From 1969 till his retirement in 2005, was a correspondent for the Newhouse Newspaper group, which included 30 daily newspapers. He covered the US Congress for 15 years and then the White House for 16 years, wrote a weekly political column and covered national politics and public policy.

Japan's NHK World NEWSLINE program reported on the two disasters to hit Asia this past week. The first report aired April 24, and covered the latest garment factory collapse in the Bangladeshi capital of Dhaka. The second report LinkAsia covered this week aired April 23, and focused on the response to the earthquake in China's Sichuan province.

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Reporter:
The upper part of the commercial building suddenly collapsed during the busy morning period. The structure housed a clothing factory, bank and a shopping center. Many people are feared trapped inside. Workers at the factory were starting their shifts and some shops were already open. More than 100 people are reportedly hurt. Soldiers and citizens are helping with the rescue operation. Local media say a crack was detected in the wall of the building on Tuesday, but people were still allowed to go inside.

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Thuy Vu:
The response to the Sichuan earthquake is an important test for China's new president Xi Jinping. Five years ago, the former government was widely criticized for its poor response to an earthquake, which also occurred in Sichuan Province. That quake killed nearly 70,000 people. For more on the Chinese government's response to this latest earthquake, here's NHK.

Reporter:
The quake is the first large natural disaster since President Xi took office last month. He swears that his government will do everything possible to help survivors. Officials are also making sure the public knows about the government's efforts.

Premier Li Keqiang traveled by helicopter to the stricken areas on the day of the quake. He instructed rescuers to do all they could to save lives. His visit was reminiscent of the one by his predecessor Wen Jiabao. The former premier visited Sichuan years ago just hours after another huge quake hit the region. He tried to show the government's readiness to support survivors.

Authorities are highlighting other aspects of the government's response to the latest earthquake. Chinese media have been reporting in detail on the rescue effort. State run tv has broadcast repeated footage of the military's operations along with images of people receiving relief goods. Officials seem to want to show the public that the government's response is going well. An expert in risk management with a government affiliated think tank says China's leaders are paying more attention than ever to disaster response.

The disaster is not the only matter at home that China must address, the country's also struggling with a widening wealth gap and the recent outbreak of a new strain of bird flu. Compared to when the 2008 quake struck, people in China can now share information more quickly. Over 500 million Chinese are said to have internet access. Public discontent can spread in an instant.

A posting on China's version of Twitter is critical of the government's earthquake response. It says officials have failed to make use of lessons from the disaster 5 years ago. Wang says authorities need to quickly share information with the public. He says that's crucial for social stability.

China's leaders were harshly criticized for the slow response to the last earthquake in 2008. People were also angered by regional disparities in reconstruction efforts. Members of President Xi's government are keen to avoid making the same mistakes.

Two years later, radiation levels in Japan's Fukushima prefecture are only slightly higher than other regions. But parents with school-aged children are slow to return home following the 2011 nuclear disaster. And local schools have seen their enrollment fall dramatically. But community residents are keeping their school doors open in the hopes that families will soon return home. On April 24, Japan's NHK World NEWSLINE program reported on the story of a school and its only student.

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Reporter:
It's the start of the school year in Onami Elementary School on the rural fringes of Fukushima City. But it's rather a lonely ceremony. There's only one student, sixth grader, Takashi Sato.

Takashi Sato:
I'm the only student this year. But that gives me the opportunity to interact more closely with my teachers. 

Reporter:
After the explosion at the Fukushima-Daiichi nuclear plant, radiation levels in the Onami district were considerably higher than in other parts of Fukushima City. Before the disaster in March 2011, there were 30 children attending Onami Elementary. But most of them were taken out of the area and there's only one student left. Even so, the city's Board of Education decided the school should be kept open.

Kenji Fukuchi:
We must take into consideration the possibility that children will return to the school in  future. We should not rush to shut down the school or integrate it with another school merely foir the sake of economy.

Reporter:
The Board was swayed by people who stayed behind in the district. Hideo Sato is the head of the neighborhood association in Onami. Like his father, he studied at the school and so did his children.

Hideo Sato:
Children are our treasure and they are the ones who will build our future. School is therefore more important than anything else.

Reporter:
Strenuous efforts have been taken to reduce radiation levels in the area. Throughout Fukushima, the biggest issue has been where to store the radioactive waste. Onami was the first community in the city to set up its own waste storage site. Radiation in the area is down to a half or even a quarter of its earlier levels.

Hideo Sato:
Thanks to the decontamination  work its just point-three-six-nine micro-sieverts per hour. Our duty is to improve the environment so school enrollment will rise.

Reporter:
Sato is now receiving one-on-one lessons at the school. Steps are also  being taken so he can attend lessons and extracurricular activities at other schools, giving him the chance to interact with other children.

Masaaki Abe:
There are many local people who want to help our student so the school can survive.

Reporter:
Next year, two children in the Onami district will reach school age, raising hopes that the school has a future.

For more info about The Power of Two and to find out how you can become an organ donor, visit LinkTV.org/PowerofTwo.

(LinkAsia: April 12, 2013)
Thuy Vu:
More bad news for Japan's nuclear energy industry. Radioactive water is leaking out of the Fukushima Daiichi nuclear plant, and crews are rushing to contain it before it spills into the ocean. For more on the story, here's NHK.

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NHK World NEWSLINE
Airdate: April 9, 2013

Reporter:
This plant has sprung leaks, and lots of them. Water is seeping in from underground through walls damaged by the earthquake and tsunami. Once inside it's contaminated, so workers are forming a seemingly dangerous task removing the water to temporary storage tanks and underground pools.

Masayuki Ono:
There have been leaks since a state of cold shutdown was achieved, but the recent case is probably the largest ever.

Reporter:
The pools sit about 800 meters from the shore. But Ono says there's no fear that the water leaked directly into the ocean. TEPCO investigators suspect the problem rides with the design and construction of storage facilities. Each pool is six meters deep. Three layers of water proof sheets cover the sides and bottom. Crews poked a hole in the sheets so that they could insert a sensor to monitor any leakage. Spokespersons say the holes themselves became the problem. The water pressure pulled the sheets down and widened the holes, allowing the water to leak out. Trade and industry minister, Toshimitsu Motegi asked the TEPCO president Naomi Hirose, to fix the problem.

Toshimitsu Motegi:
I would like you to make sure that contaminated water won't leak into the sea.

Reporter:
The assurances from TEPCO have not calmed residents.

Fusayaki Nanbu:
The leaks should never have happened in the first place. Regardless of whether or not the water has reached the ocean. TEPCO should deal with the matter more seriously.

Reporter:
Crews face another challenge too. They are running out of space. They've been filling up the seven pools and hundreds of tanks. But the tanks are nearly full. And now, the integrity of the pools is in question. So the people who run the plant are searching for somewhere else to put water that just keeps on coming.

(LinkAsia: April 5, 2013)
Thuy Vu:
While much of Asia is looking anxiously at the two Koreas, China, Pyongyang's only friend, seems more worried about what's going on at home. There's been an outbreak of a new strain of bird flu in eastern China. Although the number of infections is still small, public health officials in China are on high alert, and the US-based Centers for Disease Control are trying to find a vaccine. Here's Japan's public broadcaster, NHK.

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NHK World NEWSLINE
Airdate: April 5, 2013

Reporter:
The latest bird flu infections emerged in Shanghai. Two men who died from the virus in the city developed fevers, coughs and other symptoms in February. In March, a woman in Anhui province came down with the flu. Four more cases were also confirmed in Jiangsu province. Two more cases were confirmed in Zhejiang province this week. Officials say one of the patients has died. Another five cases were announced on Thursday in Shanghai and Zhejiang. Three deaths have been confirmed. The 44-year-old woman infected in Anhui province worked on processing birds for human consumption.The manager of the market where she works said health officials visited the market, disinfected, and tested workers blood.

Market Manager:
She was very healthy. I don't know much about what has happened to her.

Reporter:
One of the victims in Shanghai reportedly sold pork. But local health officials say they are still investigating the infection route.

Xu Jianguang:
We've asked health institutions to file daily reports on patients who've developed pneumonia of unknown origin.

Reporter:
Following the recent infection, the government ordered health officials across the country to check patients who've developed pneumonia from unknown origins. It also ordered swift and accurate information disclosure. A doctor specializing in infectious diseases said that the central government should show responsibility and take prompt measures.

Jiang Suchun:
It has been expanding to several provinces. We should watch closely how the situation develops. The infection is expected to expand further. The important thing is we make use of our past experience in our assessment of the situation. We should provide doctors with the information we have. In addition, it's vital that we educate chicken farmers and other people on how to deal with birds. And how to prevent infection.

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Thuy Vu:
In Japan, a housing story of another kind. Authorities have eased restrictions on people visiting a town near the stricken Fukushima-Daiichi nuclear plant. Here's NHK.

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NHK World NEWSLINE
Airdate: April 1, 2013

Reporter:
All 21,000 former residents of Namie are still unable to live within the town limits. More than two years have passed since a massive earthquake and tsunami set off a crisis at the nuclear plant. People who have homes in low radiation zones are now allowed to visit them during daylight hours. More than 80 percent of the former residents will be able to take advantage of the new rules. Michio Tanaka and his wife now live in another city in Fukushima prefecture. They spent their Monday visit cleaning their home.

Michio Tanaka:
I hope the government will speed up its efforts so all of us can live in the town together again.

Reporter:
Town officials say they hope to complete decontamination work, restore infrastructure, and make some parts of the town habitable within four years.