ML13127A120
| ML13127A120 | |
| Person / Time | |
|---|---|
| Site: | 07000113, Pennsylvania State University (R-002, SNM-0095) |
| Issue date: | 05/14/2013 |
| From: | Ryder C NRC/NMSS/FCSS/FCLD/FMB |
| To: | |
| Ryder C | |
| Shared Package | |
| ML13127A126 | List: |
| References | |
| TAC L33258 | |
| Download: ML13127A120 (3) | |
Text
Safety Evaluation Report Pennsylvania State University Annual Certification of Financial Assurance BACKGROUND In a letter dated November 16, 2012 (Ref. 1), Pennsylvania State University (PSU) submitted its annual certification of their self-guarantee (SG) for its Breazeale Nuclear Reactor (Docket 050-0005) and Special Nuclear Material (Docket 70-113). The U.S. Nuclear Regulatory Staff (NRC Staff) found that the submittal was adequate to perform a detailed review (Refs. 2 and 3). Of the requests for additional information (RAIs) in Reference 4, RAIs that were pertinent to only the subject annual certification, not future certifications, were sent to the licensee on March 13, 2013 as Reference 5. Subsequent discussions with the licensee revealed that the RAIs were inapplicable; the licensee had submitted the annual certification in November 2012; the RAIs were based on new requirements that became effect on December 17, 2012. In a letter dated April 22, 2013 (Ref.6), the NRC Staff withdrew the RAIs.
DISCUSSION Regulatory Requirements Nuclear facilities licensed under Title 10 of the Code of Federal Regulations (10 CFR) Part 50 and Part 70 are required to establish adequate financial assurance for decommissioning, decontamination, and reclamation pursuant to 10 CFR 50.25, Reporting and Recordkeeping for Decommissioning Planning and 10 CFR 70.25, "Financial Assurance and Recordkeeping for Decommissioning," respectively.
10 CFR 50.25 and 70.25 require that non-profit college and university licensees that utilize an SG to provide reasonable assurance of available funds for decommissioning costs through an SG are required to annually provide an SG agreement and pass a financial test pursuant to Appendix E to 10 CFR Part 30, Criteria Relating to Use of Financial Tests and Self-Guarantees For Providing Reasonable Assurance of Funds For Decommissioning by Nonprofit Colleges, Universities, and Hospitals." PSU is a holder of a reactor license and a special nuclear material license and uses a SG for meeting the financial assurance requirements. This review pertains to SG for both of PSUs licenses.
Staff Review of Self-Guarantee and Supporting Documentation In its review, the staff relied on the regulations set forth in Appendix E to 10 CFR Part 30, 10 CFR 50.75, and 10 CFR 70.25, as well as NRC guidance contained in Reference 7. The PSU submittal (Ref. 1) included:
an SG; a letter from PSUs Associate Vice President for Finance and Corporate Controller and financial test; and PSUs Audited Financial Statements To use a SG, PSU must satisfy the criteria found in 10 CFR Part 30, Appendix E,Section II.A.1 or A.2. PSUs November 16, 2012, submittal intends to demonstrate compliance with 10 CFR Part 30, Appendix E,Section II.A.1 (the Financial Test). The Financial Test, in pertinent part,
2 requires that PSU have a current rating for its most recent bond issuance of AAA, AA, A as issued by Standard & Poors or Aaa, Aa, or A as issued by Moodys.
The submittal (Ref. 1) included the identification of the Financial Test used Reference 7, Appendix A, Check List 9-B, to demonstrate passage of the Financial Test.
The submittal states that the current bond rating of the most recent unsecured bond issuance is AA, as rated by Standard & Poors. Therefore, PSU meets the requirement of 10 CFR Part 30, Appendix E,Section II.A.1. Thus, PSU meets the requirements of the Financial Test.
10 CFR Part 30, Appendix E,Section III.A through E, describes the terms that are required in an SG as follows:
A. The guarantee will remain in force unless the licensee sends notice of cancellation by certified mail, and/or return receipt requested to the NRC. Cancellation may not occur unless an alternative financial assurance mechanism is in place; B. The license shall provide alternate financial assurance as specified in the NRCs regulations within 90 days following receipt by the NRC of a notice of cancellation of the guarantee; C. The guarantee and financial test provisions must remain in effect until the NRC has terminated the license or until another financial assurance method acceptable to the NRC has been put in effect by the licensee; D. The applicant or licensee must provide to the NRC a written guarantee, which states that the licensee will fund and carry out the required decommissioning activities or, upon issuance of an order by the NRC, the licensee will set up and fund a trust in the amount of the current cost estimates for decommissioning; and E. If, at any time, the licensees most recent bond issuance ceases to be rated in any category of A or above by either Standard and Poors or Moodys, the licensee shall provide notice in writing of such fact to the NRC within 20 days after publication of the change by the rating service.
The language of the SG is in accordance with the terms and conditions in Reference 7.
Because the SG is consistent with the recommended language contained in Checklist B of Reference 7, which the NRC staff has previously determined would comply with the NRCs regulatory requirements, the staff finds that the proposed SG meets the requirements of 10 CFR Part 30, Appendix E,Section III.A, B, C, D, and E.
CONCLUSION The NRC staff concludes that PSU meets the requirements of the Financial Test set forth in 10 CFR Part 30, Appendix E,Section II.A.1, the SG, Controller Letter, and Audited Financial Statements are consistent with NRC guidance, and that the SG meets the requirements of 10 CFR Part 30, Appendix E,Section III.A through E.
On the basis of the staffs review, as discussed above, PSU has demonstrated that (1) its financial condition meets the requirements of 10 CFR Part 30, Appendix E and (2) the language of the SG, Controller Letter, and Audited Financial Statements submitted by cover letter dated November 16, 2012, are consistent with NRC guidance. Therefore, the staff finds that PSUs
3 November 16, 2012, SG and supporting documentation are acceptable and are, therefore, approved.
FINDINGS Upon review of PSUs November 16, 2012, submittal, the NRC Staff finds that PSUs SG is meets all applicable regulatory requirements.
REFERENES
- 1. Letter from Joseph J. Doncsecz, Pennsylvania State University, Audited Financial Statements - Year Ending June 30, 2012, November 18, 2012. ADAMS accession number ML130160185.
- 2. Memorandum from L. Chang, NRC, to R. Johnson, Pennsylvania State University Self-Guarantee Acceptance Review, February 21, 2013. ADAMS accession number ML13051A226.
- 3. Letter for E. Boeldt, Pennsylvania State University, Acceptance For Technical Review:
Annual Certification Of Financial Assurance (TAC L33258), February 28, 2013. ADAMS accession number ML13051A395.
- 4. Memorandum from L Change, NRC, to R. Johnson, NRC, Request For Additional Information Input With Respect To Pennsylvania State University Self-Guarantee, March15, 2013. ADAMS accession number ML13071A358.
- 5. Letter to E. Boeldt, Pennsylvania State University, Request For Additional Information Regarding The Annual Certification Of Financial Assurance (TAC NO. L33267), March 13, 2013. ADAMS accession number ML13072A043.
- 6. Letter to E. Boeldt, Pennsylvania State University, Withdrawal Of Request For Additional Information, April 22, 2013. ADAMS accession number ML13106A182.
- 7. U.S. NRC, Consolidated NMSS Decommissioning Guidance: Financial Assurance, Recordkeeping, and Timeliness, NUREG-1757, Volume 3, Rev. 1, Appendix A.9. ADAMS accession number ML032471471.