Federal Radioactive Waste Liability Act of 1987

Federal Radioactive Waste Liability Act of 1987 - Amends the Atomic Energy Act of 1954 to require the Secretary of Energy to enter into indemnification agreements with contractors regarding the transportation and disposal of radioactive waste to which the United States holds title. Requires such agreements to provide for the indemnification of persons to the full extent of the potential public liability for claims for nuclear incidents arising out of a contractual activity.

Directs the Secretary to make certain indemnification payments out of the Nuclear Waste Fund.

Provides for Federal indemnification for a precautionary evacuation undertaken as a result of a federally contracted radioactive waste disposal incident. Defines such a precautionary activity as an evacuation of the public within a specified area near a nuclear facility, or a nuclear transportation vehicle transporting waste to which the United States holds title, if the evacuation: (1) is the result of an event that poses imminent danger of injury or property damage from the radiological properties of such waste; and (2) is initiated by a public official authorized by State law to initiate such an evacuation.

Applies the waiver of specified defenses to indemnity agreements entered into by the Nuclear Regulatory Commission regarding radioactive waste to which the United States holds title.

States that: (1) radioactive waste to which the United States holds title may only be transported by a contractor of the Secretary of Energy; and (2) title to radioactive waste generated at a civilian facility shall transfer to the United States when such waste is removed from the site where it was generated.