ML20059J618
| ML20059J618 | |
| Person / Time | |
|---|---|
| Issue date: | 11/08/1993 |
| From: | Higdon J NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS) |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| REF-WM-1 NUDOCS 9311120290 | |
| Download: ML20059J618 (26) | |
Text
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~h UNITED STATES
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1 NUCLEAR REGULATORY COMMISSION g
s WASHINGTON. D.C. 20555
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h November 8, 1993
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Note to:
Document Control Desk l
The attached documents were l
distributed by the NRC in a public l
meeting that discussed the acceptance criteria sections within l
the Standard Review Plan document on November.8, 1993.
Please place these documents in the Public j
Document Room.
If you have any questions or need additional information, please I
contact me at (301) 504-2477, E-Mail JXHl.
fibo gns doan Higdon Division of Fuel Cycle Safety &
Safeguards, NMSS Attachments:
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11.1 SRP for Decommissioning l.
Funding Assurance; 13.1 SRP for Waste Handling &
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Interim Storage l
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PRELIMINARY DRAFT NOT TO BE CITED 4-11.1 STANDARD REVIEW PLAN FOR DECOMMISSIONING FUNDING ASSURANCE TABLE OF CONTENTS Section Eage
!!.1.1.
RESPONSIBILITY FOR REVIEW.,........................
1 i
11.1.2 A REA S OF REVIEW.................................. I 11.1.3.
REVIEW PROCEDURES 2
11.1.4.
ACCEPTANCE CRITERIA 9
i 11.1.5 EVALUATION FINDINGS
....................12 11.1.6 IMPLEMENTATION..............
..................13 11.
1.7 REFERENCES
13 0
9 I
I SRP 11.1 #///((
Wy 1993 i
I
. PRELIMINARY DRAFT NOT TO BE CITEE 11.1 STANDARD REVIEW PLAN FOR DECOMMISSIONING FUNDING. ASSURANCE (DFA) i o
11.1.1.
RESPONSIBILITY FOR REVIEW Etimary:
Decommissioning and Regulatory Issues Branch (LLDR)
Secondary:
Supporting; Office of General Counsel (OGC) s 11.1.2 AREAS OF REVIEW The staff will evaluate the financial instruments required by 10 CFR Parts 40, and 70 and the
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accompanying documentation submitted by the license holders to ensure that sufficient funds will be available to carry out decommissioning activities including:
l n.
Planning and preparation of the facility and site for decommissioning; l
b.
Decontamination and dismantlement of radioactive facility; c.
Packaging, shipment and burial of radioactive wastes; and I
d.
A final radiation survey.
All fuel cycle facility applicants for renewal under 10 CFR Parts 40, and 70 may use one or more of several kinds of mechanisms to comply with the financial assurance requirements for l
decommissioning. The financial responsibility arrangements specifically allowed include:
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a.
Escrow accounts; b.
Cash deposits, certificates of deposit and government securities; c.
Trust funds (including standby trusts);
d.
Surety bonds; e.
Irrevocable letters or lines of credit; i
f.
Parent company guarantee g.
Special government funds or accounts; e
l SRP 11.1 May 1993 l
1
1 PRELIMINARY DRAFT NOT TO BE CITED h.
Insurance; t
i.
External sinking fund;
- i j.
Statement of intent (government entities); and k.
Statements ofintent from government entities for use by private companies; l.
In the case of certain large corporate licensees who can demonstrate that they can meet the self guarantee criteria identified in the Commission's Staff Memorandum dated August 12,1992 (see Appendix B) they may qualify for a schedular exemption from the regulations that specify acceptable financial assurance mechanisms, until compeltion of a self-assurance mechanism rulemaking.
Combinations of the above instruments except in the case of the parent guarantee which cannot be combined with other mechanisms.
Recommended language from the different types of instruments is provided in Regulatory Guide 3.66, " Standard Format and Content Guide for Financial Assurance Requirements for Decommissioning Under 10 CFR Parts 30,40,70, and 72 (June 1990). If an applicant uses the recommended wording for a financial assurance mechanism, the only additional review necessary is to determine if it has been appropriately executed and all the necessary items have been included in the submission.
11.1.3.
REVIEW PROCEDURES The staff will review the conditions under which licensees are required to submit certification and those reauiring a decommissioning funding plan to ensure that the appropriate mechanisms are used (see Regulatory Guide 3.66).
The staff will also evaluate the licensee's financial assurance mechanism that will be used to ensure that sufficient funds will be available to carry out decommissioning activities.
I A. Acceptance Review The staff will review the financial instrument and accompanying documentation submitted by the licensee by comparing them with the checklists in Regulatory Guide 3.66. In addition, the wording of the instruments must be compared to the language i
suggested in Regulatory Guide 3.66 to ensure that the appropriate information has been submitted.
B. Financial Evaluation r
P The staff will review a financial instr.nent submitted by the licensee by using the general and specific procedures provided in the following sections:
(1) General Evaluation Procedures Applicable to All Financial Instruments l
SRP 11.1 Wy 1993 2
PRELIMINARY DRAFT NOT TO:BE CITEE The staff will use the checklists in Regulatory Guide 3.66 to ensure that the instrument contains all the necessary components. If there are questions about the wording of financial instruments or about documentation, the reviewer will consult the licensing project manager.
The staff will check signatures and verify that the parties signing the various documents are authorized to represent the firm in the transaction. If the licensee is a partnership, the signatory must indicate that that person is signing for the partnership, that is, by using words such as "for the partnership" or "for the company." If the licensee is not an individual and power of attorney is needed for l
a signature, a copy of the power of attorney should be attached to the financial assurance mechanism.
The staff will determine whether the financial assurance mechanism is complete, and will be in effect at the proper time, and if the value is consistent with certification amounts specified in 10 CFR f f 40.36 and 70.25, or is consistent with cost estimates provided in a decommissioning funding plan.
(2) Eirancial Instrument Evaluation Procedures t
The following section provides procedures for reviewing specific types of financial i
assurance mechanisms.
(a) Escrow Accounts The staff will ensure that an executed copy of the escrow agreement is provided l
by the licensee and that the amount of the fund is at least equal to the cost of decommissioning (as specified in 10 CFR ff 40.36 or 70.25 or as specified in the licensee's cost estimate).
i The staff will review the checklist in Regulatory Guide 3.66 to verify that the licensee has satisfied the conditions necessary for ensuring financial responsibility for decommissioning using this mechanism.
3 (b) Cash Deposits. Certificates of Deposit. and Government Securities The staff will ensure that the licensee has submitted a trust agreement or documentation pertaining to the licensee's activities licensed pursuant to 10 CFR Part 40, and 70, or 72. The staff will verify that the licensee has deposited assets such as cash, certificates of deposit or government securities with a third party such as a trust fund.
The staff will ensure that the amount of the cash deposit, certificate of deposit, or government security is at least equal to the cost of decommissioning (as specified in 10 CFR f f 40.36 or 70.25 or as specified in the licensee *s cost estimate).
SRP 11.1 my 1993 3
PRELIMINARY HRAFT NOT TO BE CITEE Certificates of deposit (CDs) may be either negotiable or non-negotiable. If a negotiable CD is used the staff must verify that the CD is the property of a trust or escrow account established in accordance with decommissioning rules and guidance. If a non-negotiable CD is used, the staff must verify that the CD names the trust or escrow account as payee (unless a State agency that can hold the funds will serve as trustee).
The staff will review the checklist of criteria in Regulatory Guide 3.66 to verify l
that the licensee has satisfied the condition necessary for ensuring financial
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responsibility for decommissioning using one of these mechanisms.
(c) Trust Funds (Including Standby Trusts)
The staff will ensure that the licensee has provided information so that it can verify that the bank, savings and loan association, or other financial institution :
has the authority to act as trustee, and that the trust operations are regulated and examined by a Federal or State agency. To determine whether the trustee is authorized to act as trustee the staff will refer to a list, published by the Comptroller of the Currency, of financialinstitutions that are federally authorized to act as trustee, or will contact the applicable bank regulatory agency to determine state authorization. To determine whether the trustee's operations are ret;ulated and examined by a Federal or State Agency, the staff will refer to a list maintained by the Federal Deposit Insurance Corporation (FDIC) of all federally regulated financial institutions, or will call the applicable state banking regulatory agency for verification of state regulated entities. For foreign banks with U.S. branches, the staff will contact the applicable state banking regulatory agency.
Where standby innsts are used, the staff will verify that the trustee is qualified i
to act as trustee by following the same method discussed for verifying trusts, _
above. It will also verify that the standby trust agreement is an originally signed duplicate and that a certificate of acknowledgement accompanies the bond or letter of credit.
l The staff will ensure that amount of the trust fund is at least equal to the cost of decommissioning (as specified in 10 CFR ff 40.36 or 70.25 or as specified in the licensee's cost estimate).
The staff will review the checklists in Regulatory Guide 3.66 to verify that the I
licensee has satisfied the conditions necessary for ensuring financial i
responsibility for decommissioning using these mechanisms.
L (d) Surety Bonds I
The staff will ensure that a standby trust fund agreement accompanies the bond, and that it complies with the suggested wording and documentation in i
SRP 11.1 May 1993 4
PRELIMINARY DRAFT NOT TO BE CITEL r
The staff will ensure that the licensee has submitted information showing that 1
the surety is listed as an acceptable surety in the most recent edition of Circular 570 of the U.S. Department of the Treasury and that the surety company is i
licensed in the State where the bond will be executed.
i The staff will verify that the licensee reviewed the broker or agent's power of attorney to ensure that the broker or agent is authorized by the surety to issue bonds in the necessary amount.
The staff will ensure that documentation provided by the licensee shows that the applicant will be responsible for notifying the NRC if the surety company intends to cancel or if it goes bankrupt.
l The staff will ensure that the penal sum of the bond is an amount at least equal to the cost of decommissioning (as specified in 10 CFR ff 30.35,40.36 or 70.25 or as specified in the licensee's cost estimate).
The staff will review the checklist of criteria in Regulatory Guide 3.66 to verify that the licensee has satisfied the conditions necessary for ensuring financial responsibility for decommissioning.
(e) Ixtters of Credit 1
The staff will ensure that the applicant has submitted information so that it can verify that the bank, savings and loan association, mutual savings bank, or credit union issuing the letter of credit has authority to issue letters of credit, i
and that the letter-of-credit operations are regulated and examined by a Federal or State agency. The staff will refer to a list maintained by the Federal Deposit Insurance Corporation (FDIC) of all federally regulated financial institutions or will call the applicable state banking regulatory agency for verification of state regulated entities. In addition, for foreign banks with U.S. branches, the staff will contact the applicable state banking agency.
The statf will ensure that the amount of the guarantee is at least equal to the cost of decommissioning (as specified in 10 CFR 06 40.36 or 70.25 or as specified in the licensee's cost estimate).
The staff will ensure that a letter of credit addressed to the NRC is submitted stating that the letter of credit is subject to the most recent edition of_the Uniform Customs and Practice for Documentary Credits, published by the 3
International Chamber of Commerce, or the Uniform Commercial Code.
i The staff will ensure that a standby trust fund agreement accompanies the letter of credit and that it complies with the suggested wording contained in Regulatory Guide 3.66.
i SRP 11.1 May 1993 5
PRELIMINARY DRAFT-NOT TO BE CITEI' The staff will review the draft " sight draft" using Appendix A of this guidance a
to ensure that the terms of the letter of credit and the terms of the sight draft are consistent.'
The staff will review the checklist of criteria in Regulatory Guide 3.66 to verify that the licensee has satisfied the conditions necessary for ensuring financial responsibility for decommissioning.
(f) Parent Company Guarantee The staff will verify that the licensee presents evidence that it is a bona fide going concern and that it possesses positive tangible net worth.2 The staff will l
review the letter from the chief executive officer of the licensee submitted to
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demonstrate compliance with these requirements.
The staff will verify that the licensee has provided a letter from the corporate j
parent's chief financial officer, which specifies that the corporation guarantees to provide specified dollar amounts to fund decommissioning activities in the event of the licensee's default. The staff will also verify that the letter includes a financial statement and that it has adequate resources to cover the cost of decommissioning using alternative I of II of the financial test in Regulatory Guide 3.66.
D d
The staff will verify that the licensee has submitted a copy of an independent certified public accountant's opinion of the parent company's year-end financial statements and footnotes for the latest complete fiscal year.
The staff will verify that the licensee has submitted a special report o_n the corporate guarantor from an independent certified public accountant. The report should confirm that the financial data in the letter from the chief l
financial officer can be derived from the independently audited year-end financial statements and footnotes for the latest complete fiscal year. The l
report also should state that no matters came to the attention of the accountant that caused the accountant to believe that the information in the chief financial officer's letter should be adjusted.
If there is any doubt about the qualifications of the certified public accountant, the staff will verify the accountant's credentials by contacting the State Board of Accountancy in the accountant's State.
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' A " sight draft" is an order to the bank to pay on the letter of credit. It is an authorization to draw on the letter of credit upon receipt (upon " sight") of the draft.
2 A " going concern" is a firm that is expected to continue operating at Icast long enough i
for current expectations and plans to be carried out and for the reasonably foreseeable future period after that.
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SRP 11.1 May 1993 6
PRELIMINARY DRAFT NOT TO BE CITED i l
The staff will ensure that the licensee has provided information that enables it
. to verify that the corporate parent has control of the licensee's voting stock and also satisfies the financial test. If there is any reason to question the validity of the fimancial data (e.g., if the corporate parent barely satisfies the financial test criteria), the staff will ask the firm to supply audited financial statements, or it -
should obtain Form 10-K from the SEC, and recalculate the financial ratios.
The staff will ask the corporate parent to provide the NRC with documentation of any changes in its fimancial condition, which would warrant filing Form 8-K with the SEC.
If necessary, the staff will use Moody's or Standard and Poor's bond rating guides to verify that the bonds are rated as claimed.
If an accountant's opinion is unqualified, (or clean), the staff will fmd the opinion acceptable for purposes of the parent company guarantee.
If an accountant's opinion is either adverse of a disclaimer of opinion, the staff j
will not allow the use of a parent company guarantee.
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If an accountant's opinion is a qualified opinion, (either and "except for" or a
" subject to"), excluding opinions rendered on the basis of a " going concern issue", the staff will do the following:
8 It will ask the corporate parent to submit a copy of its latest financial statements. Alternatively, it could obtain a copy of the latest Form 10-K from the SEC.
9 It should thoroughly understand the accountants' opinion in the context of the financial statements so that it can determine the likelihood of the circumstances specified in the accountants' opinion, the accuracy of
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the financial assessment, and the ability of the firm to meet the costs being guaranteed.
S Ifit cannot make a decision because the information in the opinion or the financial statements is insufficient, it will require that the corporate guarantor submit additional information.
L G If the matter is still unresolved, it will request assistance from its legal counsel.
i The staff will ensure that the amount of the parent company guarantee is at least equal to the cost of decommissioning (as specified in 10 CFR ff 40.36 or 70.25 or as specified in the licensee's cost estimate).
The staff will review the checklist of criteria in Regulatory Guide 3.66 to verify SRP 11.1 May 1993 i
7 r
PRELIMINARN DRAFT NOT TO BE CITEE that the applicant has satisfied the conditions necessary for ensuring financial,
responsibility for decommissioning using this mechanism.
(g) Special Government Fund 1.
The staff will ensure that the licensee provides written. verification ofits agreement with the State regulatory agency (acting as a trustee) indicating that -
the funds will be used only for decommissioning.
The staff will ensure that documentation of the special account is provided by the licensee and that the amount of the fund is at least equal to the cost of decommissioning (as specified in 10 CFR 66 40.36 or 70.25 or as specified in i
the applicant's cost estimate).
The staff will review the checklists in Regulatory Guide 3.66 to verify that the livnsee has satisfied the conditions necessary for ensuring financial responsibility for decommissioning using this mechanism.
(h) Insurance The staff will ensure that documentation of the insurance policy is provided by I
the licensee and that the amount of the fund is at least equal to the cost of decommissioning (as specified in 10 CFR f f 40.36 or 70.25 or as specified in i
the applicant's cost estimate).
The staff will review the checklists in Regulatory Guide 3.66 to verify that the licensee has satisfied the conditions necessary for ensuring financial responsibility for decommissioning using this mechanism.
1 (i) External Sinkinc Fund The staff will ensure that documentation is provided by the licensee which indicates that a fund in the form of cash deposits in an escrow account, trust agreement, certificate of deposit, or government securities has been established.
The staff will ensure that documentation of a surety method (e.g. letter of credit, surety bond, or insurance) is supplied when this mechanism is used.
The staff will ensure that documentation of the external sinking fund and surety method is provided by the licensee and that the amount of the fund is at least equal to the cost of decommissioning (as specified in 10 CFR f 6 40.36 or r
70.25 or as specified in the licensee's cost estimate).
The staff will review the checklists in Regulatory Guide 3.66 to verify that the licensee has satisfied the conditions necessary for ensuring financial l
responsibility for decommissioning using this mechanism.
I SRP 11.1 -
May 1993
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PRELIMINARY DRAFT NOT TO BE CITEE: -
(j) Statement of Intent i
-I The staff will' ensure that the licensee is a Federal, State, or local government entity and that the officials signing the statement of intent have the authority to make such a commitment.
The staff will ensure that the amount of funds committed in the statement of
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intent is at least equal to the cost of decommissioning (as specified in 10 CFR -
f if 40.36 or 70.25 or as specified in the licensee's cost estimate).
i The staff will review the checklists in Regulatory Guide 3.66 to verify that the licensee has satisfied the' conditions necessary for ensuring financial responsibility for decommissioning using this mechanism.
i (k) Statements of Intent from Government Entities for Use by Private Comoanies' The staff will review the agreements between the private companies and government entities to verify the government's intent to pay the decommissioning costs of the company.
1 (1) Self-Guarantee Criteria The staff will review schedular exemption requests from the regulations that f
specify acceptable financial mechanisms until completion of the self-assurance i
mechanism rulemaking. Such requests will be reviewed for documentation demonstrating that the licensee meets the criteria in Appendix B of this guidance.
i C. Requests for Additional Information I
On the basis of its review, the staff may request that the licensee provide additional information or modify the submittal to meet the acceptance criteria in Section 4 of this SRP.
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i 11.1.4. ACCEIrTANCE CRITERIA i
A. Regulatory Recuirements I
The regulations applicable to the areas of review of this SRP are 10 CFR Parts 40, and l
70.
r B. Regulatory Guidance Regulatory Guide 3.66, " Standard Format and Content Guide for Financial Assurance Requirements for Decommissioning under 10 CFR Parts 30,40,70 and 72 (June 1990) l SRP 11.1 May '.,,l 9
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PRELIMINARY DRAFT NOT TO BE CITED I
l Commission Staff Requirement Memorandum, SECY-92-174 - Response to General Electric and Westinghouse Petitions for Rulemaking to Allow Self Guarantee as an.
Additional Means for Compliance with Decommissioning Regulations, August 12,1992
.i C. Regulatory Evaluation Criteria i
i The staff will determine if the financial assurance information is acceptable by ensuring that it complies with the checklists provided in Regulatory Guide 3.66.
An Allowable Financial Instrument is acceptable ifit meets the following conditions:
(1) The financial instrument must state whether the principle is a corporation, partnership, or individual and must be in a form to allow the staff to determine ifit has been properly yigned and notarized and will be effective at the proper time.
(2) With regard to signatures on a financial instrument; (a) The instrument should be legally binding on all signatories (b) The licensee must insure that the parties signing the various documents are authorized to act as representatives for the firm involved in the transactions.
Persons signing on behalf of the corporate principal must designate their legal capacity and should hold the position of president or vice president of the corporation. If persons other than the president or vice-president are signing, a resolution or other certified evidence of authority must be attached to the -
instrument that states that the signatories have the authority to sign on behalf of the principal. If needed for a signature, a copy of the power of attorney should be attached to the financial assurance instrument and the corporate seal should be affixed.
e (c) If the principal is a partnership, the firm's name must appear in the caption of the financial instrument.
y (d) If the principal is joint ownership, but is not a partnership, the firm's name must appear in the caption and all owners must sign the financial statement.
(c) If applicable, a signature of the attorney-in-fact (representative granted power of attorney) acting on behalf of the issuing organization must appear on the financial instrument. The financial instrument must be accompanied by a properly executed authorization of the power of attorney for the person signing the instrument.
l (f) If applicable, the financial instrument must contain the signature of the resident agent of the organization issuing the instrument. The agent must be qualified to j
do business in the State where the facility will be located.
- i (g) Each party must sign his/her own name.
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SRP 11.1 May 1993 1
10 1
PRELIMINARY DRAFT:
' NOT TO BE CITED,
(h) For statements ofintent from government entities for use by private companies, the licensee must ensure that a properly signed agreement whereby the decommissioning costs the company would incur are treated as a business expense and will by agreement be absorbed by the government entity.
(i) For any self-guarantee schedular requests the license must ensure that it meets the criteria found in Appendix B of this guidance.
(3) The financial instrument must be issued by an organization that has the legal authority to execute such an arrangement (e.g. for a surety company check l
Circular 570; for other mechanisms, consult the checklists in Regulatory Guide 3.66).
(4) All financial instruments, including the original, any additions, and any replacements, must describe and pertain to the activities licensed pursuant to 10 CFR Part 40, and 70.
(5) The financial assurance must be open ended and cannot be cancelled without at least 90 days advance notice to the NRC.
(6) The instrument must allow for automatic collection by the NRC before its expiration if the licensee cannot provide an acceptable alternative financial assurance mechanism 60 days fter the receipt of notification of cancellation. The instrument must not require proof of forfeiture.
(7) When the instrument is a bond or letter of credit, it must be accompanied by a standby trust to receive assets in the event the licensee defaults or goes bankrupt.
A standby trust is recommended, but not required, for parent company guarantees.
When the instrument is a government security or certificate of deposit, it must be accompanied by either a standby trust or an escrow.
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(8) The instrument should specify the NRC or State agency satisfactory to the NRC as beneficiary. If the instrument' designates a State agency as the beneficiary, the licensee must submit written documentation to the NRC that will allow the NRC staff to verify that the State agrees to use any funds received to carry out the activities re-quired for decommissioning.
l (9) The instrument, or combination ofinstruments, must be sufficient at all times to cover all the costs of decommissioning.
(10) The instrument must clearly state the terms and conditions under which the licensee
'l may cancel the instrument and must provide for notification and approval by the State or Federal authority before cancellation by the company.
(11) The instrument must be established so that the financial assurance can be released after the NRC has agreed that all license conditions for decommissioning have been met. The NRC will send written notification to the licensee allowing termination of SRP 11.1 May 1993 11 m.
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PRELIMIN RY DRAFT-NOT TO BE CITED A
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the financial assurance mechanism and a return of any funds held.
(12) Following NRC's approval of the instrument, the.following related requirements must still be met:
(a) The licensee's financial assurance coverage must provide coverage throughout the term of the license.
(b) If tlie current cost estimate exceeds the coverage because of inflationary increa:e.s or changes in plans, the licensee must arrange to increase coverage and submit evidence of the increase to the NRC within 60 days after the cost estimates increase. If cost estimates decrease, the applicant may apply to the NRC for approval of a decrease in coverage.
k (c) The applicant may change the financial assurance mechanisms in use with pnor written approval from the NRC. The new mechanism, if approved, must.
become effective before or at the time the previous mechanism expires. If a letter of credit, surety bond, certificate of deposit, or government security is used, the applicant must also establish a standby trust fund.
(d) An applicant should obtain alternative financial assurance coverage in the event of bankruptcy of the institution acting as trustee or issuing the financial l
instrument.
(e) The applicant must inform the NRC within 10 days after it or the organization issuing the financial instrument learns of the applicant's bankruptcy proceedings
[10 CFR 40.41(f), or 70.32(a)(9).
I (f) If ownership or operating responsibility for the activities is transferred, the NRC will not allow the applicant to terminate the original financial instrument until such time as the new applicant has obtained an acceptable assurance.
(g) The applicant is responsible for obtaining another financial assurance l
mechanism if the financial institution or corporate guarantor gives notice that it intends to cancel.
11.1.5 EVALUATION FINDINGS
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A. Introduction The staff's review must verify that the information provided is sufficient to satisfy the l
requirements in 10 CFR Parts 40, or 70, and be able to conclude that this evaluation is complete. The staff will document its review as follows:
B.
Sample Evaluation Finding "The staff has reviewed the financial assurance documentation submitted by the licensee SRP11.1 May 1993 12 1
PRELIMINARY DRAFT NOT TO BE CITED for [name of facility] facility according to Regulatory Guide 3.66 the Standard Review Plan For The Review Of Financial Assurance Mechanisms For Decommissionine Under 10 CFR Parts 30. 40. 70. and 72 (June 1990). The staff gas determined that the fmancial assurance mechanisms submitted by the licensee are sufficient to ensure that adequate funds will be available to decommission the facility so that the site will i
ultimately be available for unrestricted use for any public or private purpose. The staff, 7
therefore, concludes that the financial assurance mechanisms comply with 10 CFR Part,
l 40, or 70]."
11.1.6 BIPLEMENTATION This SRP provides to the NRC in its technical review of fuel cycle facility licensees' l
fmancial assurance mechanisms for decommissioning. In addition, it may be used as guidance by licensees regarding NRC's plans for performing such a technical review.
j Except when the licensee proposes an acceptable alternative method for complying with the i
Commission's regulations, the staff will use the method described herein.
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11.
1.7 REFERENCES
1.
Code of Federal Reculations, Title 10, " Energy," U.S. Government Printing Office, l
Washington, DC, revised annually.
2.
International Chamber of Commerce, Uniform Customs and Practices for Documentary Credits, Paris, France,1983.
i 3.
U.S. Department of the Treasury, Circular 570, " Companies Accepted on Federal Bonds," Washington, DC, published annually in Federal Register.
i 4.
Lawyer's Cooperative Publishing Co., Uniform Commercial Code, Rochester, NY, 1985.
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SRP 11.1 May 1993 13
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PRELIMINARY DRAFT' NOT TOLBE CITEDL !
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APPENDIX A l
Draft Sample Sight Draft (To be used is necessary to draw upon letter of credit.)
S Date
>t i
On sight pay to the order of Onsert standby trust or other pavee) (payee), Onsert sum in writing) Dollars ($
) and charge the sum paid to letter of credit Number.
, issued to
.f i
To: Onsert name and address of bank issuine letter of credit.)
Signature, title, and address of person authorizing payment.
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SRP 11.1 May 1993.
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' l PRELIMINARY DRAFT NOT TO BE CITEF 3
I APPENDIX B Self Guarantee Criteria 1.
Introduction i
An applicant or licensee may provide reasonable assurance of the availability of funds for decommissioning based on furnishing its own guarantee that funds will be available for decommissioning costs and on a demonstration that the company passes the financial test.
This appendix establishes criteria for passing the financial test for the self guarantee.
l II. Financial Test A.
To pass the financial test, a company must meet all of the following:
(1) Tangible net worth of at least $1 billion.
i (2) Tangible net worth at least 10 times the total current decommissioning cost estimate for all decommissioning activities for which the company is responsible as self-guaranteeing licensee and as parent-guarantor, or the current amount required if certification is used.
(3) Assets located in the United States amounting to at least 90 percent of total assets or at least 10 times the to:al current decommissioning cost estimate for all decommissioning activities for which the company is responsible as self-guaranteeing licensee and as parent-guarantor, or the current amount required if certification is used.
(4) A current rating for its most recently issued bonds of AAA, AA, or A as issued l
by Standard and Poors (S&P), or Aaa, Aa, or A as issued by Moodys.
B.
Additional Requirements I
(1) The company must have at least one class of equity securities registered under
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the Securities Exchange Act of 1934.
(2) The company must provide the Commission with copies of all reports filed with the Securities and Exchange Commission under Section 13 of the Securities Exchange Act of 1934.
i (3) The company's independent certified public accountant must compare the data used by the company in tM financial test with the company's independently
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audited yearend financial statement.
i (4) The company must repeat passage of the test within 90 days after the close of f
SRP 11.1 May 1993 15
PRELIMINARY DRAFT NOT TO BE CITEIl -
each succeeding fiscal year.
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- (5) The company must notify NRC within 90 days of any matters coming to the attention of the auditor that cuase the auditor to believe that the data specified in the financial test should be adjusted and that the company no longer passes the test.
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SRP 11.1 May 1993 f
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...: PRELIMINARY DRAFT NOT TO BE CITED 13.1 STANDARD REVIEW PLAN FOR WASTE IIANDLING AND INTERIM STORAGE TABLE OF CONTENTS Section Pace 13.1.1 RESPONSIBILITY FOR REVIEW I
13.1.2 AREAS OF REVIEW I
13.1.3.
REVIEW PROCEDURES I
13.1.4.
ACCEPTANCE CRITERIA.
4 13.1.5.
EVALUATION FINDINGS.
6 7
13.1.6.
IMPLEMENTATION.
13.1.7.
REFERENCES.
7 SRP 13.1 May 1993
' PRELIMINARY DRAFT NOT TO BE CITED 13.1 STANDARD REVIEW PLAN FOR WASTE IIANDLING AND INTERIM STORAGE 13.1.1 RESPONSIBILITY FOR REVIEW Primarv:
Licensing Branch (FCSS)
Secondary:
Operations Branch (FCSS)
Supoorting:
Region Office
)
l 13.1.2 AREAS OF REVIEW The staff will review the information on waste handling and interim storage to ensure that-generated waste will be handled safely and segregated properly and that sufficient storage will be provided. Additionally, the review is to ensure that the storage provided will be carried out in a safe manner and in a way that will prevent contact of water with the stored waste. Waste handling includes (1) the procedures and equipment that will be used to safely move waste and (2) the operations to define, identify, and segregate Class A, Class B, and Class C wastes properly for transportation and disposal. Waste storage includes the procedures, buildings, and equipment that will be used to store waste for a short time before transportation er.d disposal.
The evaluation of waste handling and interim storage will include a review of the descriptions in the SAR, specifically of the following areas:
1.
Procedures, processes, and equipment used to move and to segregate waste for transportation and ultimate disposal.
2.
Procedures, processes, buildings, and equipment to store waste for a short time before shipment and disposal: Specific attention should be paid to the means of preventing contact of water with waste during storage.
13.1.3 REVIEW PROCEDURES The staff will obtain and use such information as is required to ensure that this review procedure is complete and will use and emphasize material from this SRP as may be appropriate for a specific case.
1.
Safety Evaluation The staff will review the information on waste handling and interim storage in the SAR to determine if the applicant has followed the regulations and the guidance of applicable references and industry standards and has demonstrated that the applicant's methods will SRP 13.1 1
May 1993
' PRELIMINARY DRAFT NOT TO BE CITED provide the stated performance. The areas of review are discussed in the following sections.
A.
Waste Handling The staff will review the information on waste handling with specific attention to:
(1) the procedures and processes to be used for waste handling, (2) the operations to define, identify, and segregate Class A, Class B, and Class C
- wastes, 1
(3) the procedures and processes for repairing and decontaminating waste packages damaged during handling and while in storage, (4) the procedures and processes for handling unique containers (e.g., extreme weight, shape or radiation levels),
(5) the procedures and processes to be used for the retrieval of waste packages from interim storage, (6) elements of the applicant's radiation protection program which specifically address waste handling, The staff should determine the adequacy of procedures to protect workers during handling, especially those related to the handling of waste that represent a significant radiological or physical hazard. The staff should evaluate (1) the effect of handling procedures on the integrity of packages and (2) the proposed repackaging processes for i
any packages damaged. Use of equipment for handling the different classes of waste should be reviewed according to applicable industry standards.
The staff should evaluate license procedures for manifesting packaged waste.
B.
Interim Storage The staff will review the information and determine the adeqeuacy of interim storage with specific attention to:
(1) the use of storage space when necessary, (2) the procedures for efficient use of storage space, (3) the maximum allowable time that wastes, especially Class C waste, will be permitted to be placed in storage before shipment.
SRP 13.1 2
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' PRELIMINARY DRAFT NOT TO BE CITED (4) the procedures for maintaining security in the interim storage area,.
(5) the procedures for maintaining the safety of the workers during the transfer into and out of interim storage, and that all Federal and State safety regulations are
- observed, (6) elements of the applicant's radiation protection program which specifically address waste in storage, (7) the applicant's criteria for waste storage, (8) procedures for maintaining waste packages in condition suitable for shipment and disposal.
l The staff will evaluate the method proposed to protect stored waste from effects of adverse weather conditions and water runoff. In addition, the staff should evaluate the method proposed for the operation of the facility during and after sustained rainfall or I
other adverse weather conditions. The use of equipment, its installation and the maintenance should be reviewed according to the applicable industry standards.
C.
Combined Handling and Storage Considerations The staff will evaluate the processes for handling and storage of waste that have elements common to both, such as; (1) equipment commonly used in the industry as well as specialized equipment far handling and storage of waste on site, (2) the manpower requirements for waste handling and storage, (3) the creation of decontamination waste, the procedures and processes for handling, storage, and disposition of this waste, (4) the methods used to minimize waste generation during decontamination activities, (5) the methods to minimize worker exposure and dose commitments, and the procedures for recordkeeping, (6) the contingency procedures and processes for emergency equipment failure, accidents, and extreme natural phenomena, (7) the procedures and processes for handling and storage of fissile materials with regard to security, safety, strategic significance, and criticality safety, SRP 13.1 3
May 1993
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' PRELIMINARY DRAFT NOT TO BE CITED 2.
Erauests for Additional Information On the basis of its review, the staff may request that the applicant supply additional information or modify the submittal to meet the acceptance criteria in Section 4 of this SRP.
13.1.4 ACCEPTANCE CRITERIA 1.
Regulatory Recuirements The regulations applicable to the areas of review of this SRP are derived from 10 CFR Part 61, " Licensing Requirements for land Disposal of Radioactive Waste." These regulations are applied only as related to the handling, segregation, and storage of radioactive wastes.
Applicable regulations are listed below.
(1) 10 CFR 61.12, " Specific Technical Information," (f), as it relates to the procedures for and areas of waste segregation; (2) 10 CFR 61.43, " Protection of Individuals During Operations," as it relates to -
compliance with the standards for radiation protection in 10 CFR 20 and that every reasonable effort be made to maintain radiation exposures as low as is reasonably achievable; (3) 10 CFR 61.51, " Disposal Site Design for Land Disposal," (a)(6), as it relates to minimizing, to the extent practicable, the contact of water with waste during storage; (4) 10 CFR 61.55, " Waste Classification", as it relates to the determination of the classification of radioactive wastes.
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{ NOTE REGARDING TIIIS SRP: TIIE ABOVE LISTED REGULATIONS DIRECTLY APPLY TO SIIALLOW LAND DISPOSAL FACILITIES, AND ONLY INDIRECTLY RELATE TO WASTE HANDLING AND STORAGE AT FUEL CYCLE FACILITIES.
ADDITIONAL REGULATION IS NEEDED IN TIIIS AREA TIIAT DIRECTLY APPLY f
TO FUEL CYCLE FACILITIES.}
2.
Regulatory Guidance Guidance is provided in Section 3.3 of the " Branch Technical Position on Near-Surface Disposal Facility Design and Operation" as it relates to waste storage and the efforts needed to minimize the contact of water with waste containers. Guidance related to waste classification requirements is provided in " Technical Position on Waste Form for 10 CFR Part 61."
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PRELIMINARY DRAFT NOT TO BE CITED 3.
Regulatorv Evaluation Criteria Evaluation criteria pertaining to the areas of review listed in Section 2 of this SRP are given in the following sections.
A.
Waste Handling The information on waste handling is acceptable if the procedures proposed provide for the proper handling, and segregation of Class A, Class B, and Class C wastes at all times. The waste handling procedures should bc similar to accepted procedures at facilities of similar design. The proposed procedures should provide for the protection of workers during all phases of handling with special emphasis on the procedures when handling wastes that present a significant radiological or physical hazard. Segregation procedures should provide for the protection of any packages against damage.
Handling procedures should contain contingency plans for damaged packages and propose repackaging procedures. Equipment to be used should meet industry standards and have the capability to permit safe handling of waste and to carry out its intended design functions.
B.
Interim Storage The information on intenm storage of waste is acceptable if the procedures proposed result in the use of storage space only when necessary, in the use of storage space efficiently, and in the shipment of waste as soon as possible after its generated. The proposed storage system is acceptable if the waste, buildings, and equipment will be l
protected from adverse effects of precipitation, and waste will be protected from water. Equipment to be used should meet industry standards and be installed to meet the intended safety functions of the facility. Criteria for interim storage should reflect the need for prompt shipment and disposal of waste material. Storage procedures should address maintenance of waste package integrity that is consistent with shipment and disposal requirements.
C.
Combined Handling and Storage Considerations The information provided by the applicant related to combined handling and storage considerations for generated waste is acceptable if the applicant:
(1) has provided adequate rationale for equipment and manpower requirements for waste handling and storage; (2) has provided a realistic assessment of waste volume and type generated and the subsequent handling and storage of the waste; SRP 13.1 5
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< PRELIMINARY DRAFT NOT TO BE CITED i
(3) has provided a realistic assessment of increased worker exposure during waste handling and storage and has procedures in place to maintain such exposures ALARA; (4) has provided an adequate rationale for methods of handling fissile materials.
13.1.5 EVALUATION FINDINGS 1.
Introduction The staff's review should verify that sufficient information has been provided in the SAR to satisfy the applicable 10 CFR Part 61 and 10 CFR Part 20 requirements and that the information is consistent with the guidance in this SRP. On the basis of this information, the staff should be able to conclude that this evaluation is complete. The staff can document its review as follows.
2.
Sample Evaluation Findings The staff has reviewed the waste handling and interim storage operations for the [name of facility] facility according to this SRP.
The staff concludes that the waste handling and interim storage operations are designed to (1) maintain radiation exposures as low as is reasonably achievable, (2) minimize contact of water with waste while it is in storage, and (3) appropriately classify and segregate different waste types. The facility, therefore, meets 10 CFR 61.12(f) as it relates to the storage and segregation of waste,10 CFR 61.43 as it relates to radiation protection of individuals during operations,10 CFR 61.5)(a)(6) as it relates to minimizing contact of water with waste, and 10 CFR 61.55 as it relates to waste classification. In meeting these requirements, the applicant has used the methods recommended in " Branch Technical Position on Near-Surface Disposal Facility Design and Operation," including those for (1) minimizing the extensive storage of waste, (2) shipping of waste as soon as possible, (3) protecting any needed storage areas from precipitation by the use of shelters or covers, (4) protecting any needed storage areas from surface water runoff by grading or by placing the waste on platforms so that it is above surface water runoff, and (5) the proper handling of waste that will ensure the segregation of viaste.
The staff concludes that operations which relate to both the storage and handling of waste will be conducted using appropriate manpower and equipment. Worker exposures will be maintained ALARA. Security and safeguards are appropriate for the quantities of SNM to be generated. Proper administrative controls will be implemented to assure criticality safety. Incidental waste generathn will be minimized and that which is generated wi:1 be properly manifested and disposed. Contingency planning is adequate for the maximum credible on-site emergency during handling and storage.
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-PRELIMINARY DRAFT NOT TO BE CITED 13.1.6 IMPLEMENTATION This SRP provides guidance to the NRC staff in its technical review of an SAR for waste handling and interim storage for fuel cycle facilities. In addition, it may be used as guidance by applicants and licensees regarding the NRC's plans for performing such a technical review.
Except when the applicant proposes an acceptable alternative method for complying with the Commission's regulations, the staff will use the methods described herein.
13.
1.7 REFERENCES
1.
Code of Federal Reculations, Title 10, " Energy," U.S. Government Printing Office,.
Washington, DC, revised annually.
2.
U.S. Nuclear Regulatory Commission, " Branch Technical Position on Near-Surface Disposal Facility Design and Operation," November 1982.
3.
U.S. Nuclear Regulatory Commission, " Technical Position on Waste Form for 10 CFR Part 61," May 1983.
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