ML20128B303
| ML20128B303 | |
| Person / Time | |
|---|---|
| Issue date: | 01/11/1993 |
| From: | Rathbun D NRC OFFICE OF CONGRESSIONAL AFFAIRS (OCA) |
| To: | Graham B, Lehman R, Sharp P HOUSE OF REP., HOUSE OF REP., ENERGY & COMMERCE, SENATE, ENVIRONMENT & PUBLIC WORKS |
| References | |
| NUDOCS 9302020491 | |
| Download: ML20128B303 (3) | |
Text
- _ _ _ _ _ _ _ -
___ ~
, . ._ /ja 280 'o UNITED ST ATES - I
! 3+
g_
- g.
_ NUCLEAR REGULATORY COMMISSION .
..j '
{[-
~ V;ASWNGTON, D. C. 20555
.- p
..... January --11, :199 3 -
The Honorable Richard H. Lehman, Chairman Subcommittee on Energy and Mineral Resources
-Committee on Natural Resources United-States House of Representatives Washington,=D. C.-20515
Dear Mr. Chairman:
The Nuclear Regulatory Commission has sent-to the Office'of-the:
Federal Reaister:for_ publication.the enclosed? Federal Register- .,
Notice. .In this~ notice,.the-NRC is i'ssuing a1 proposed rule that p would allow self-guarantee as an additional mechanism for-complyingiwith the commission's regulations regarding-financial--
assurance-for decommissioning. . The-proposed self-guarantee.would l-be-limited to NRC licensees..that meet? stringent' financial ' ,
criteria and would-not--include electric _ utility reactor; licen' sees; If promulgated asifinal,,the' rule would_ grant a-petition.for rulemaking-(PRM-30-59) submitted'by General. Electric:-
Company and Westinghouse Electric Company..
Sincerely, l
,)? : s f Dennis K..Rathbun,.. Director.
Office ~of Congressional Affairs l
p j=
Enclosure:
j' As Stated p
j cc: Rep.-Barbara Vucanovich l
l .-
p 9302020491
.PDR 930111-ORO; 'NRCCD k'
PDR p } p.--
J
_ = _ - _ _ _ _ = _ _
- f '*#o, UNITED STATES .
,, NUCLEAR REGULATORY COMMISSION .
'. g ;1 l(!
- y -- WASHINGTON, D. C. 20555 =
\, *- -/
- January 11,'1993 The Honorable Philip Sharp, Chairman Subcommittee on Energy and Power Committee on-Energy _and~. Commerce _
United States House of Representatives Washington, D. C. 20515
Dear Mr. Chairman:
The Nuclear Regulatory Commission has sent to the office of the Federal Reaister for publication the enclosed Federal Register-Notice. In this notice, the:NRC is' issuing a proposed rule.that would allow self-guarantee as'an' additional! mechanism-for complying with the Commission's regulations regarding financial -"
assurance for decommissioning. The proposed self-guarantee _would be. limited to NRC_ licensees that meet stringent financial criteria and would not include electric utility. reactor licensees. If promulgated as final,- the_ rule would grant-a
_ petition for rulemaking -(PRM-30-59) submitted by General Electric a!
H Company and Westinghouse Electric Company.
Sincerely,:
f -
Dennis:K.-Rathbun,_D rector-Office.of Congressional Affairs-
Enclosure:
As Stated cc: Rep. Carlos Moorhead 1
1 i
q 1
.=
a J ,'gf L UNITED STATES'~
NUCLEAR REGULATORY COMMISSION 7 -. g ,
WASHINGTON, D. C. 20555 -
. 7-.
/ January 11, 1993.
The Honorable Bob _ Graham, Chairman Subcommittee on Nuclear Regulation Committee on Environment and Public Works United States Senate Washington, D. C.-20510
Dear Mr. Chairman:
The Nuclear Regulatory Commission.has sent.to the Office of the Federal Reaister for publication the-enclosed Federal' Register--
Notice. In this notice, the NRC is issuing a propmed. rule'that-L . would allow self-guarantee:as an additional. mechan _;m for.-
complying with the commission's regulations:regarding financial ~
~
assurance for decommissioning. The proposed-seh -guarantee would-be limited.to-NRC licensees:that meet: stringent financial -
i criteria-and would not-include electric utility $ reactor
- . licensees. If~ promulgated-as fina1, the rule'would-grant a. .
L petition for-rulemaking.(PRM-30-59). submitted-by" General. Electric Company and Westinghouse Electric-Company. ,
I i
l- Sincerely,
,_ L Dennis K.'R thbun, Director.
L Office ofLCongressional Affairs
Enclosure:
As Ste* '
cc: ' h, ir Alan K. Simpson I i-
)
-j u !
l 1
i l
- , . . ?
.i:
l r
[7590-01] ,
NUCLEAR REGULATORY COMMISSION 10 CFR Parts 30, 40, 50, 70, 72 RIN 3150-AE16 Self-Guarantee As An Additional Financial Assurance Mechanism -
AGENCY: Nuclear Regulatory Commission.
ACTION: Proposed rule.
SUMMARY
- The Nuclear Regulatory Commission is proposing to amend its ;-
regulations for decommissioning licensed facilities to allow certain non- j electric utility licensees to use self-guarantee as a means of financial assurance. The proposed rule would reduce the cost burden of financial:. ,
1 assurance while providing NRC with sufficient. assurance that decommissioning ~
'\s costs'will be funded. This proposed rule responds.to a petition for rulemaking (PRM-30-59) from General ~ Electric Company and Westinghouse Electric j
l Corporation, i
DATE: Comment period expires ( insert date 75 days after publication).
Comments received after this date will be considered if it is practical to do so, but the Commission .is able to assure consideration only for comments received on or before this date.
4
- a. 1 O -pgf ' ~~~
c o~
ADDRESSESi~ ~ Mail written-comments to: Secretary,'U.S. Nuclear Regulatory Commission Washington, DC, 20555, Attention: . Docketing and Service Branch.-
Deliver comments to: 11555 Rockville Pike, Rockville, Maryland, between-7:45 am and 4:15 pm Federal workdays.
Copies of the regulatory analysis and comments received may be' examined at: The NRC Public Document Room, 2120 L Street, NW. (Lower Level),
Washington, DC.
'FOR FURTHER INFORMATION CONTACT: Clark Prichard, Office of Nuclear Regulatory Research, U.S. Nuclear Regulatory Commission, Washington, DC 20555,-telephone (301) 492-3734.
SUPPLEMENTARY INFORMATION:
Background
On September 25,1991 (56 FR 48445), the.NRC published a. notice of receipt of a petition for rulemaking from the General Electri: Company (GE) and the Westinghouse-Electric Corporation (Westinghouse). The petitioners -
-requested that the NRC amend its decommissioning regulations contained in 10 CFR Parts 30, 40, 50, 70, and 72 to provide a means for self-guarantee of .
decommissioning funding costs by certain NRC licensees who meet stringent financial standards and related reporting -and oversight requirements. The petitioners proposed that electric utility reactor licensees under 10 CFR Part 50-not be affected by the proposals in the petition.
2
On June 27,1988 (53 FR 24018), the NRC published a final rule that established general requirements for decommissioning nuclear facilities.
These requirements provide assurance that licensed facilities will be decommissioned in a safe and timely manner and that adequate-funds will be available for decommissioning. Under the present decommissioning regulations, licensees are permitted to provide financial assurance for decommissioning funding through prepayment, ir.surance, a surety bond, a letter of credit, a parent company guarantee, or for electric utilities, the establishment of an ~
external sinking fund.
In 1990, GE and Westinghouse requested exemptions from the financial assurance requircments for decommissioning. The requested exemptions would have permitted GE and Westinghouse to demonstrate financial assurance for decommissioning by submitting a self-guarantee that otherwise met or exceeded the criteria for qualifying parent company guarantees under Appendix A to 10 CFR Part 30. The Commission denied the requests for exemption. Later in 1990, GE and Westinghouse each submitted a petition for reconsideration of their requests for exemption. These requests for reconsideration were also denied. However, in informing GE and Westinghouse of the uenial, the Commission indicated a willingness to consider a petition for rulemaking from GE and Westinghouse.
The GE/ Westinghouse petition was docketed on July ll, 1991 (PRM-30-59).
The petition requested that Parts 30, 40, 50, 70, and 72 be amended to allow corporate self-guarantee as an additional method of complying with financial assurance for decommissioning requirements in those parts. The petition proposed criteria for corporate self-guarantee which would assure that only 3
__________-_-___:__ ._ __ ___ a
very strong financial entities could qualify. The financial criteria which- _
were proposed are:
(1) Tangible net worth of at least $1 billion.
(2) Tangible net worth at least 10 times the current decommissioning-cost estimate, 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 current decommissioning cost estimate, or the current amount required if certification is used.
(4) A current bond rating of AAA, AA, or A as issued by Standard and Poors (S&P), or Aaa, Aa, or A as issued by Moodys.
A number of procedural requirements were also prcposed:
(1) The company must have at least one class of equity securities registered under the Securities Exchange Act of 1934.
i (L; The company will provide the Commission with copies of all reports l t
filed with the Securities and Exchange Commission under.Section 13 of the !
Securities Exchange Act of 1934.
(3) The company's independent certified public accountant must compare the data used by the company in the financial test with the company's-independently audited.yearend financial statements.
(4) The company must repaat passage of the test within 90 days after the close of each succeeding fiscel year.
(5) The company must notify flRC within 90 days of any matters coming to the attention of the auditor that cause the auditor to believe that the data specified in the financial test should be adjusted and' that the company no longer passes the test.
4
- 1 l
The self-guarantee would be available only for an applicant or licensee having no parent company holding majority control of its voting stock.
Basis for Petition The petitioners believed that they have been adversely and unreasonably affected by limitations in the current decommissioning regulations. Companies such as the petitioners are unable to guarantee decommissioning funding if they themselves are the licensee. However, relatively weaker financial institutions, such as banks, insurance companies, and savings and loans, are permitted to guarantee decommissioning funding for licensees without providing any evidence of financial strength.
Furthermore, licensees without the financial strength of the petitioners may provide qualifying parent company guarantees solely because these parent companies are legal entities distinct from the subsidiary licensees whose decommissioning funding they guarantee.
The petitioners asserted that the lack of an internal decommissioning funding method imposes unwarranted compliance costs upon them. The current regulations compel the petitioners to either restructure their licensed activities into less financially secure subsidiaries for which they could then provide a parent company guarantee, or to purchase outside financial assurance.
5
Public Comments The Commission received five comment letters in responso to the publication of the notice of receipt of the petition. Most of the letters supported a revision of the Commission's regulations to allow self guarantee.
Three large materials licensees supported self guarantee, although they favored less stringent financial criteria for self guarantee so that a wider-range of licensees could qualify to use self guarantee. One large materials licensee prefers that the tangible net worth requirement should be ten times the estimated decommissioning costs, or in the case of licensees with multiple facilities requiring decommissioning, $500 million to $1 billion depending on the number of such facilities. Another large materials licensee suggests that NRC use the same financial requirements now applicable to parent company guarantees. It does not see any need to make the tangible net worth criterion any higher than $50 million. The minimum bond rating requirement should be BBB or Baa, the lowest rating still considered investment grade. Also, in their opinion, the financial ratio tests in Appendix A to 10 CFR Part 30 should be retained as an alternative to the bond rating criterion. Finally, this commenter does not believe that the more restrictive tangible not worth / decommissioning cost ratio proposed in the petition'is justified.
Another large materials licensee asserts that there is no rational basis for establishing criteria for a company self-guarantee which differ significantly from existing criteria for the parent company guarantee. In either instance, the adequacy of the financial assurance requirement provided is based on the value of the assets securing the decommissioning obligation. According to this commenter, if the assets are held in two separate pools, each technically 6
i owned by a different but related company, the level of financial security provided does not increase in any significant measure. In virtually all instances where the parent guarantee is utilized, the subsidiaries are wholly or substantially owned by the parent such that the financial and other elements of the two entities are substantially the same. As an alternative, this commenter recommends that the NRC adopt the petitioners' proposal, modified by reducing the minimum tangible net worth requirement to at most
$100 million, and requiring a bond rating not lower than BBB or Baa.
An electric utility licensee opposes the petition's exclusion of the electric utility reactor licensees under 10 CFR Part 50. Its position is that decommissioning regulations should apply to all licensees equally and that compliance alternatives contingent on licensee financial status and size should also be available to utilities.
A commenter opposed self-guarantee, citing the potential for takeover and breakup of large corporations. This would mean that a company initially allowed to use a self guarantee by meeting the criteria, subsequently could be substantially weakened through restructuring. The ability of the restructured company to meet decommissioning costs could be in doubt.
Response to Comments Several commenters favored the self guarantee concept but argued for less stringent financial criteria. The Commission is interested in alternative financial criteria which would permit more licensees to use the proposed self-guarantee, yet would maintain a high level of financial 7
i
.- -- -- ~. .. . , , .
-i i
assurance. The Commission is asking for public comments on_a possible.
l alternative to the proposed financial criteria (see Alternative Criteria). I Regarding the comment concerning the exclusion of electric utilities from the scope of the proposed self-guarantee, the Commission allows electric I utilities to accumulate decommissioning funds in an external sinking fund. - l Unlike other licensees subject to financial assurance requirements, electric utilities do not have to provide financial assurance "up. front." Thus, i
-l electric utilities already are permitted a cost-reducing financial assurance mechanism.
l In response to the comment that self-guarantee should not be allowed because of the patential for takeover and breakup of large companies, the l L Commission believes that the requirements for annual re-certification, combined with timely bond rating reviews, will be adequate to maintain the level of financial assurance of the proposed self-guarantee.
l l
Basis for the Commission's Decision The Commission has carefully reviewed the arguments in the petition, as well as the public comments. For the reasons outlined below, it has decided to initiate this _ rulemaking, which, if promulgated as final, would grant the petition.
Stringent financial Criteria i
The financial criteria proposed for self-guarantee are exceptionally stringent. The Commission is confident that licensees able to meet the 8
l t
i
I financial criteria provide the necessary reasonable assurance that funding will be availat>1e to meet decommissioning costs. The regulatory analysis estimates that only approximately 20 present NRC licensees could meet the criteria.
The criterion for tangible net worth, $1 billion, far exceeds that required for the NRC parent company guarantee ($10 million). In addition to the $1 billion tangible net worth requirement, the proposed rule would require that a licensee must have tangible net worth at least ten times the total current decommissioning cost estimate for all decommissioning activities for which the company is responsibic as self-guaranteeing licensee and as parent-guarantor, or the current amount required if certification is used. To assure that assets are within reach of the Commission's authority, 90 percent of total assets or at least ten times total decommissioning cost estimates for all decommisrioning activities for which the company is responsible as self-guaranteeing licensee and as parent-guarantor, or the current amount if i
certification is used, would need to be in the United States, in addition to tangible net worth criteria, the financial criteria-l.
E include a bond rating of A or above. This bond rating is above that-required l to classify debt securities as " investment grade." The principal-debt rating b services, Moodys and Standard and.Poors, classify bonds with a rating of Baa and BBB-respectively, as " investment grade" as opposed to bonds with a. lesser rating which are classified as " speculative grade." Bond ratings are reviewed often, and changed in response to changes in the issuer's financial condition.
A bond rating of A or better assures that the financial strength of a licensee off ering a self-guarantee has been independently reviewed and . affirmed. It
! provides an excellent guide to the ability of a company to meet its 9
l
i l
obligations. According to Moodys, default rates associated with companies whose bonds are rated A or above'in 1 of the 3 years prior to default are 0.13 percent annually.8 There could be concern that a self-guaranteeing licensee's financial y
condition could deteriorate over time, jeopardizing decommissioning funding.
The proposed rule has the following safeguards against this possibility: !
(1) A licensee using self-guarantee would need to be re-certified each year as meeting the financial criteria, (2) Copies of all current financial reporti
! filed with the Securities and Exchange Commission would also need to be provided to the Commission, (3) The company would need to notify NRC within 90 days of any matters which couid prevent the company from any longer passing the financial criteria, and (4) The company would need to notify NRC within R 20 days if its bonds are no longer rated A or better.
l Cost Savings l
l l The objective of this proposed rule is to reduce the licensee's cost 1
burden without adverse effects on public health and safety. The draft regulatory analysis developed for this proposed rule estimates that annual-total cost savings would be approximately $600,000 for all licensees using the sel f-guarantee. This estimate is based on rather conservative assumptions (i .e., $750,000 total decommissioning cost per license); the actual cost savings may be considee' ably greater. Both the petition for rulemaking.and l several public comment letters assert much greater cost savings.
l l 'Corocrate Bond Defaults and Default Rates, Moody's Special Report, l January 1991, p. 32.
10 l
~. .. . ..
The cost savings would result from the eliminatitn of the cost of th party financial assurance for licensees qualifying to use the proposed self-guarante=, Annual fees for letters of credit, surety bonds, and other forms of third party financial assurance typically are approximately 1.5 percent of the amount of financial assurance provided.
Comparison with Parent Guarantee The NRC currently allows licensees to comply with its financial assurance regulations by means of a parent company guarantee. The parent company of a licensee, if it meets the financial criteria in 10 CFR Part 30, Appendix A, may guarantee that funds will be available to decommission the facility of its subsidiary licensee. The parent company guarantee allowed in NRC regulations does not provide a greater degree of financial assurance than self-guarantee for a company meeting the criteria proposed here. Under current regulations, there is no explicit regulatory requirement that licensees using the parent company guarantee: (1) be wholly independent of the parent company who provides the guarantee and (2) demonstrate financial qualifications in itself that are comparable to those required of a parent company guarantor under current regulations or those proposed for self-guarantee in the petition.
A company which meets the financial criteria for the proposed rule could readily pass the financial test in 10 CFR Part 30, Appendix A, and would thus be eligible to provide a parent company guarantee for a subsidiary. It is anomalous for NRC regulations to permit a large, financially strong company to provide a parent company guarantee, but not allow that same company to provide 11 l
4 a self-guarantee. Moreover.. a large, financially strong company could _ carry out a corporate' restructuring to create a licensee subsidiary which could then be covered by a parent company guarantee.
EPA Precedent The Environmental Protection Agency (EPA) allows self-guarantee as a-mechanism for meeting its financial assurance regulations for_ hazardous waste facilities (40 CFR Parts 264 and 265). The objective of EPA and NRC. financial assurance regulations is the same; to ensure that adequate funds are available to safely decommission facilities. EPA has about 10 years of experience with-self-guarantee to date (the final rule was promulgated on April 7,1982,.
47 FR 15033), and self-guarantee has been an effective financial assurance mechanism.
Alternative Criteria The Commission notes that a majority of commentersion the petition questioned the need for the financial _ criteria _for self-guarantee to be-'as stringent as proposed here. Allowing less stringent criteria would permit additional licensees to use self guarantee and thus reduce the costs of complying with the1 Commission's regulations. The draft regulatory analysis indicates' that;one' approach which could widen the range of eligible licensees would be -to delete the $1 billion tangible net worth criterion. A company's tangible net worth is an important factor comprising its bond rating, and then rating itself, combined with the other criteria, may be a sufficient indicator 12
f of financial stability. Since all firms qualifying would need an A or better bond rating, this alternative may not be riskier in terms of financial assurance than the proposed rule. The draft regulatory analysis examines the effects of deleting the $1 billion tangible not worth requirement from the t financial criteria in the proposed rule, all other criteria remaining constant. The conclusion is that this alternative, if adopted, would allow an additional 7 firms, holding 11 licenses, to use the proposed self-guarantee.
The Commission is especially interested in public comments on this alternative financial criteria--the criteria in this proposed rule without the $1 billion tangible net worth requirement.
Administrative Conforming Changes Sections 30.8(b), 40.8(b) and 50.8(b) are being revised to list all the regulatory provisions of these parts that contain information collections.
Environmental Impact: Categorical Exclusion The NRL has determined that this proposed regulation is the-type of action described as a categorical exclusion in 10 CFR 51.22(c)(10)(1).
i Therefore, neither an environmental impact statement nor an environmental assessment has been prepared for this proposed regulation.
13
, , . ,-. ,,,.+.;..,., ..r, , -. , ...._ m., , y , - . .....ry..,
Paperwork Reduction Act Statement This proposed rule amends information collection requirements that are subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501, et seq.).
This rule has been submitted to the Office of Management and Budget for review and approval of the paperwork requirements.
The public reporting burden for this collection of information is estimated to average 19 hours2.199074e-4 days <br />0.00528 hours <br />3.141534e-5 weeks <br />7.2295e-6 months <br /> per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the date needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Information and Records Management Branch (MNBB-7714), U.S. Nuclear Regulatory Commission, Washington, DC 20555, and to the Desk Officer, Office of Information and Regulatory Affairs, NE0B-3019, (3150-0017, -0020, -0011,
-0009,-0132), Office of Management and Budget, Washington,.DC 20503.
Regul atory - Analysis The Commission has prepared a draft regulatory analysis on this proposed l
l regulation. The analysis examines the costs and benefits of the alternatives considered by the Commission. The draft analysis is available for inspection in the NRC Public Document Room, 2120 L Street, NW. (Lower Level),
Washington, DC. Single copies of the draft analysis may be obtained from i
Clark W. Prichard, Office of Nuclear Regulatory Research, U.S. Nuclear Regulatory Commission, i'ashington, DC, 20555 telephone (301) 492-3734.
14
[
The Commission requests public comment on the draft regulatory analysis..
Comments on the draft analysis may be submitted to the NRC as indicated under the ADDRESSES h ading. I Regulatory Flexibility Certification ;
In accordance with the Regulatory Flexibility Act, 5 U.S.C.-605(b), the Commission certifies that, if promulgated, this proposed rule will.not have a .
significant economic impact upon a substantial number of small entities. The ,
proposed rule would af fect only. entities with a tangible net worth of $1 billion. The licensees affected by this proposed rule do not fall within the scope of the definition of "small entities" set forth in the Regulatory Flexibility Act or the size standards of the NRC applicable to a small business (56 FR 56671; November 6, 1991).
t 7'
Backfit Analysis The NRC has determined that-the backfit rule, 10 CFR 50.109, does not
-apply to.this proposed rule and, therefore, that a'backfit' analysis is not required for this yreposed rule, because=these amendments do not involve any- '
provisions which would impose backfits as defined in 10 CFR 50.109(a)(1).
,f 15
i List of Subjects 10 CFR Part 30 Byproduct material, Civil penalty, Government contracts,
- Intergovernmental relations, Isotopes, Nuclear material, Radiation protection, Reporting and recordkeeping requirements.
10 CFR Part 40 Criminal penalty, Government contracts, Hazardous materials-transport, Nuclear materials, Reporting and recordkeeping requirements, Source material, Uranium.
10 rFR Part 50 Antitrust, Classified information, Criminal penalty, Fire protection, incorporation by reference, Intergovernmental relations, Nuclear power plints i- and reactors, Radiation protection, Reactor siting criteria, Reporting and '
L recordkeeping requirements.
l 10 CFR Part 70 L Criminal- penalty,1 Hazardous- materials-transportation, Material control-and accounting, Nuclear materials, Packaging and containers, Penalty -
Radiation-protection, Reporting and recordkeeping requirements, Scientific-equipment, Security measures, Special nuclear material.
i l
16
- -= --
t*
10 CFR Part 72 Hanpower training programs, Nuclear materials, Occupational safety and health, Reporting and recordkeeping requirements, Security measures, Spent ;
fuel.
For the reasons set out in the preamble and under the authority of the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974, as amended, and 5 U.S.C. 553, the NRC is proposing to adopt the following-amendments to 10 CFR Parts 30, 40, 50, 70, and 72.
1 PART 30 - RULES OF GENERAL APPLICABILITY TO DOMESTIC LICENSING OF BYPRODUCT MATERIAL
- 1. The authority citation for Part 30 continues to read as follows:- ,
AUTHORITY: Secs. 81, 82, 161, 182, 183, 186, 68 Stat. 935, 948, 953, 954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2111, 2112, 2201, 2232, 2233, 2236, 2282); secs. 201, as amended, 202,-206,_88 Stat.
1242, as imended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846).
Section 30.7 also issued under Pub. L.95-601, rec. 10, 92 : Stat. 2951-
- (42 U.S.C. 5851). Section 30.34(b) also. issued under sec. 184, 68 Stat.=954, i as t. mended (42 U.S.C. 2234). Section.30.61 also issued under sec. '187, 68 Stat. 955 (42 U.S.C. 2237).
for the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273);
l 16 30.3, 30.10, 30.3A(b), (c), (f), (g) and (i),- 30,41' (a) and (c),- and 30.53 l are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C. 2201(b));
I 30.10 is issued under sec. 1611, 68 Stat. 949, as amended (42 U.S.C..
L 17 k
i p ' &s- , ,,e. a. +a u-..,. ,. -, ,-n. .,.w.+ . . , . , . - ~ . .,,n . .- , .,-n- ,, -n-- a
t 2201(i)); and 1130.6, 30.9, ' 30.34(g), 30.36, 30.50, 30.51, 30.52, 30.55, and 30.56(b) and (c) are issued under sec. 1610, 68' Stat. 950, as amended 4
(42 U.S.C. 2201(o)).
r
- 2. In i 30.8 paragraph (b) is revised to read as follows: ,
6 30.8 Information collection requirements: OMB approval (b) The approved information collection requirements contained in this part appear in il 30.15, 30,19, 30.20, 30.32, 30.34, 30.35, 30.36, 30.37, 30.38, 30.50, 30.51, 30.55, 30.50, and Appendix A and B.
- 3. In 6 30.35, the introductory text of paragraph (f)(2) is revised to read as follows:
$ 30.35 Financial assurance and recordkeeping for decommissioning.
(f)
(1)
(2) A surety method, insurance, or other guarantee method. These methods guarantee that decommissioning costs will be paid. A surety met.1od may be in the form of a surety bond, letter of credit, or line of credit. A parent company guarantee of' funds for decommissioning costs based on a financial test may be used if the guarantee and test are as contained in Appendix A of-this part. A parent company guarantee may not be used in combination with other financial methods to satisfy the requirements of this section. A guarantee of funds by the-applicant or licensee for decommit;ioning costs based on a financial test may be used if the guarantee 18
--,v-- e e-- w-- r ww,. .- , , ,- --e .gy, , e - _ , , -,,e ,
c _ __. _ _ -- _____ - . _ _--- . _ - _ . .___ .
and test are as contained in Appendix B of this part. A guarantee by the applicant or licensee may not be used in combination with any other financial ,
methods to satisfy the requirements of this section or in any situation where i the applicant or licensee has a parent company holding majority control of the-voting stock of the company. Any surety method or insurance used to provido financial assurance for decommissioning must contain the following conditions:
s s s s s -
- 4. A new Appendix B is added to Part 30 to read as follows:
Appendix B to Part 30 - Criteria Relating to Use of Financial Tests and Self Guarantees for Providing Reasonable Assurance of Funds for Decommissioning.
I. Introduction.
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 of Section !! of this ,
appendix. The terms of the self-guarantee are in Section !!! of this appendix. This appendix establishes criteria for passing the financial test for the self guarantee and establishes the terms for a self-guarantee.
- 11. Financial Test.
A. To pass the financial test, a company must meet all of the following criteria:
-(l) Tangible' net worth of at least $1 billion.-
(2)~ Tangible not worth at least 10 times the total current decommissioning cost estimate for all decommissioning activities for which the 19 y ; e -- ,y-*w a m* -? wmmi- d e t--w- --- c - , .- - m ---r- - - - -
w-m - r -
Ty&-t'e-- V M4-- T
_ _ _ . _ . _ - _ _ . _ _ _ . _ _ _ . . _ . _ _ _... .___... _ ... _ ._ - _ .___m T
i company is responsible as self-guaranteeing licensee and as parent-guarantor, ;
or the current amount required if certification is used. i (3) Assets located in the United States amounting to at least 90 percent ,
of total assets or at least 10 times the total current decommissioning cost- ,
i estimate for all decommissioning activities for which the company is respon.ible as self-guaranteeing licensee and as parent-guarantor, or the- ;
current amount required if certification is used. ,
(4) A current rating for its most recent bond issuance of AAA, AA, or A- ,
as issued by Standard and Poors (S&P), or Aaa, Aa, or A as issued by Moodys.
B. To pass the financial test, a company must meet all of-the following additional requirements:
(1) The company must have at least one class of equity securities registered under the Securities Exchange Act of 1934.
(2) The company's independent certified public accountant must have compared the data used by the company in the financial test which is derived !
from the independently _ audited, yearend financial statements for the latest fiscal year, with the amounts in such financial statement. - In connection with-that procedure, the licensee shall inform NRC within 90 days of any matters i coming to the attention of the auditor that cause the auditor to believe that ,
the data specified in the financial test should be adjusted and that the- ,
company no longer passes the test.
(3) After the initial financial test, the company must repeat-passage' of' the test within 90 days after the close of each' succeeding fiscal year.
III. Company Self-Guarantee.
The terms of a self-guarantee which an applicant or licensee furnis.hes must provide that:
20 1
-me weew-+p-wr.ir...s,_.-.y e w-;- + -, e p .y, '.-
b e--p,-s- me y %y.4n_.9 ,.-p y. , - ., e g __.ng .,
4 SD' *-e --w--mec-wr y_ w-ne.*rryem m-W-.- *
. . - - - . _ - . - - - . - - . ~ - - . - - - . . _ - ~ _ . , - . _ . .-
p .
f A. The guarantee will remain in force unless the licensee sends notice l of cancellation by certified mail to the Commission. Cancellation may not occur, however, during the 120 days beginning on the date of receipt of the notice of cancellation by the Commission, as evidenced by the return receipt.
B. The licensee will provide alternative financial assurance as specified in the Comission's regulations within 90 days following receipt by the Commission of a notice of cancellation of the guarantee.
C. The guarantee and financial test provisions must remain in effect until the Commission has terminated the license or until another financial assurance method acceptable to the Ccmmission has been put in effect by the licensee. 1
- 0. The licensee will promptly forward to the Commission and the licensee's independent auditor all reports covering the latest fiscal year filed by the licensee with the Securities and' Exchange Commission pursuant to l the requirements of Section 13 of the Securities and Exchange Act of 1931. I 1
E. If, at any time, the licensee's most recent bond issuance ceases to j be rated in any category of "A" or above by either Standard and Poors or j Moodys, the licensee will provide notice in writing of such fact to the Commission within 20 days after publication of the change by the rating service.
PART 40 - DOMESTIC LICENSING OF SOURCE MATERIAL
- 5. The authority citation for Part 40 continues to read as follows:
AUTHORITY: Secs. 62, 63, 64, 65, 81, 161, 182, 183, 186, 68 21
. . _ _ _ . _ _ _ _ . _ _ _ . _ . _ - _ . . _.J . _ . . _ _ _ . . . _ _ . _ -
, l l
1 l
1 Stat. 932, 933, 935, 948, 953, 954, 955, as amended, secs. 11e(2), 83, 84, Pub. L.95-604, 92 Stat. 3033, as amended, 3039, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2014(e)(2), 2092, 2093, 2094, 2095, 2111, 2113, 2114, 2201, 2232, 2233, 2236, 2282); sec. 274, Pub. L.86-373, 73 Stat. 688 (42 U.S.C.
l 2021); secs. 201, as amended. 202, 206, 88 Stat. 1242, as amended.-1244,-1246 -
(42 U.S.C. 5841, 5842, 5846); sec. 275, 92 Stat. 3021, as amended by Pub. L.97-415, 96 Stat. 2067 (42 U.S.C. 2022), j Section 40.7 also issued under Pub. L.95-601, sec.10, 92 Stat. 2951 ;
(42 U.S.C. 5851). Section 40.31(g) also issued under sec. 122, 68 Stat.-939 (42 U.S.C. 2152). Section 40.46 also issued under sec. 184, 68 Stat. 954, as i amended (42 U.S.C. 2234). Section 40.71 also issued under sec.187, 68 Stat. ,
955 (42 U.S.C. 2237). l For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273);
il 40.3, 40,25(d)(1)-(3), 40.35(a)-(d) and (f), 40.41(b) and (c), 40.46, 40.51(a) and (c), and 40.63 are issued under sec. 161b, 68 Stat. 948, as ,
amended (42 U.S.C. 2201(b)); i 40.10 is issued under sec. 1611, 68 Stat.
- 949, as amended (42 U.S.C. 2201(i)); and il 40.5,40.9,40.25(c),(d)(3),.and (4), 40.26(c)(2), 40.35(e), 40.42, 40.60, 40.61, 40.62, 40.64, and 40.65 are issued under sec. 1610, 68 Stat. 950, as amended.(42 U.S.C. 2201(o)). -
t 6.- In 6 40.8 paragraph (b) is revised-to read as follows:
i 40.8 Information collection requirements: OM8' approval.
(b) The approved information collection requirements contained in'this part appear in $ 5 40.25, 40.26, 40.31, 40.35, 40.36, 40.42, 40.43, 40.44, 40.60, 40.61, 40.64, 40.65, and Appendix A. _
22
.~ , ,...-,----,,,.-m., -
.,-.~...._~~.-v,_4 ,,_.,.,rv---,+.. ,r,- .--,,,-,,_,# , ~, . --_.,v---,,. - , . ---e,-, , . , . . , -,,v--
W J I
- 7. In i 40.36 the introductory text of paragraph (e)(2) is rovised to read as follows:
6 40.36 Financial assurance and recordkeeping for decommissioning. j I
(e)
(2) A surety method, insurance, or other guarantee method. These j methods guarantee that decommissioning costs will be paid. A surety method may be in the form of a surety bond, letter of credit, or line of credit. A parent company guarantee of funds for decommissioning costs based on a ,
1 financial test may be used if the guarantee and test are as contained in .)
Appendix A of 10 CFR Part 30. A parent company guarantee may not be used in combination with other financial methnds to satisfy the requirements of this section. A guarantee of funds by the applicant or licensee for decommissioning costs based on a financial test may be used if the. guarantee ;
and test are as contained in Appenoix B of 10 CFR Part 30. A guarantee by the
- applicant or licensee may not be used in combination with any other financial methods to satisfy the requirements of this section or in any situation where the applicant or licensee has a parent company holding majority control' of the-voting stock of the company. . Any surety method or insurance used to provide financial assurance'for decommissioning must_contain the following conditions:
b 23 l
?,,._.,_.m . _ , . . . .
PART 50 - DOMESTIC LICENSING OF PRODUCTION AND UTillZATION FACILITIES
- 8. The authority citation for Part 50 continues to read as follows:
AUTHORITY: Secs. 102, 103, 104, 105, 161, 182, 183, 186, 189, 68 Stat.
936, 937, 938, 948, 953, 954, 955, 956, as amended, sec. 234, 83 Stat. 1244, as amended (42 U.S.C. 2132, 2133, 2134, 2135, 2201, 2232, 2233, 2236, 2239, 2282); secs. 201, as amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846).
Section 50.7 also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951 t (42 U.S.C. 5851). Section 50.10 also issued under secs. 101, 185, 68 Stat.
i 936, 955, as amended (42 U.S.C. 2131, 2235); sec. 102, Pub. L.91-190, 83 Stat. 853 (42 U.S.C. 4332). Sections 50.13, 50.54(dd), and 50.103 also' issued under sec. 108, 68 Stat. 939, as amended (42 U.S.C. 2138). Sections 50.23, 50.35, 50.55, and 50.56 also issued under sec. 185, 68 Stat. 955 (42 U.S.C.
2235). Sections 50.33a, 50.55a and Appendix Q also issued under sec.102, Pub. L.91-190, 83 Stat. 853 (42 U.S.C. 4332). Sections 50.34 and.50.54 also issued under sec. 204, 88 Stat. 1245 (42 U.S.C. 5844). Sections 50.58, 50.91, )
l and 50.92 also issued under Pub. L.97-415, 96 Stat. 2073 (42 U.S.C. 2239). -i Section 50.78 also issued under sec. 122, 68 Stat. 939 (42 U.S.C. 2152)'.
Sections 50.80 - 50.81 als9' issued under sec.184, 68:Statr 954r asramended' (42 U.S.C. 2234). Appendix F also issued under sec. 187, 68 Stat. 955 (42 U.S.C 2237).
For the purposes of sec 223, 68 Stat. 958, as amended (42 U.S.C. 2273);~
ll 50.5, 50.46(a) and (b), and-50.54(c) are issued under sec. 161b, 68 Stat.
948, as amended (42 U.S.C. 2201(b)); il 50.5, 50.7(a), 50.10(a)-(c), 50.34(a) and (c), 50.44(a)-(c), 50.46(a) and (b), 50.47(b), 50.48(a), (c), (d),'and.
24 ,
(e), 50.49(a), 50.54(a), (i), (t)(1), (1)-(n), (p), (q), (t), (v), and (y), ,
50.55(f), 50.55a(a), (c)-(e), (g), and (h), 50.59(c), 50.60(a), 50.62(b),
50.64(b), 50.65, and 50.80(a) and (b) are issued under sec. 1611, 68 Stat.
949, as amended (42 U.S.C. 2201(i)), and il 50.9, 50.49(d), (h), and (j),
50.54(w). (z), (bb), (cc), and (dd), 50.55(e), 50.59(b), 50.61(b), 50.62(b),
50.70(a), 50.71(a)-(c) and (e), 50.72(a), 50.73(a) and (b), 50.74, 50.78, and 50.90 are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C.
2201(o)).
- 9. In i 50.8 paragraph (b) is revised to read as follows:
1 50.8 Information collection requirements: OMB approval.-
(b) The approved information collection requirements contained in this part appear in i 9 50.30, 50.33, 50.33a, 50.34, 50.34a, 50.35, 50.36, 50.36a, 50.48, 50.49, 50.54, 50.55, 50.55a, 50.59, 50.60, 50.61, 50.63, 50.64, 50.65, l
50.71, 50.72, 50.75, 50.80, 50.82, 50.90, 50.91, and Appendices A, 8, E, G, H, I, J, K, H, 14, 0, Q, and R.
- 10. In 5 50.75 the introductory text of paragraph (e)(1)(iii) and paragraph (e)(2)(iii) are revised-to read as follows:- - -- -
i 50.75 Reporting and recordkeeping for decommissioning planning.
(e) i (1) l 1
25
,.,nr ,n .
, , - y, ,, e---
(iii) A surety method, insurance, or other guarantec method. These methods guarantee that decommissioning costs will be paid. A surety method-may be in the form of a surety bond, letter of credit, or line of credit. Any surety method or insurance used to provide financial assurance for decommissioning must contain the followina conditions:
(2)
(iii) A surety method,. insurance, or other guarantee method. A parent company guarantee of funds for decommissioning costs based on a financial test may be used if the guarantee and test are as contained in Appendix A of 10 CFR Part 30. A parent company guarantee may not be used in combination with other financial methods to satisfy the requirements of this section. A guarantee of funds by the applicant or licensee for decommissioning costs based on a financial test-may be used if the guarantee and test are as contained in Appendix B of 10 CFR Part 30. A guarantee by the applicant or the licensee <
may not be used in combination with any other financial methods to satisfy the .
requirements of this section or in any situation where the applicant or licensee has a parent-company holding majority control of the voting stock of the company.- - -
PART 70 - DOMESTIC LICENSING 0F-SPECIAL NUCLEAR MATERIAL
- 11. The authority citation for Part 70 continues to read as follows:
26 1.
i AUTHORITY: Secs. 51, 53, 161, 182, 183, 68 Stat. 929, 930, 948, 953, 954, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2071, 2073, 2201, 2232, 2233, 2282); secs. 201, as amended, 202, 204, 206, 88 Stat. 1242, as amended, 1244, 1245, 1246 (42 U.S.C. 5841, 5842, 5845, 5846).
Sections 70.l(c) and 70.20a(b) also issued under secs. 135, 141, Pub. L.97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161). Section 70.7 also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851). Section 70.21(g) also issued under sec.122, 68 Stat. 939 (42 U.S.C. 2152). Section 70.31 also issued under sec. 57d, Pub. L.93-377, 88 Stat. 475 (42 U.S.C.
2077). Sec'tions 70.36 and 70.44 also issued under sec. 184, 68 Stat. 954, as amended (42 U.S.C. 2234). Section 70.61 also issued under secs. 186, 187, 68 Stat. 955 (42 U.S.C. 2236, 2237). Section 70.62 also issued under sec. 108, 68 Stat. 930, as amended (42 U.S.C. 2138),
for the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273);
il 70.3, 70.10, 70.19(c), 70.21(c), 70.22(a), (b), (d)-(k), 70.24(a) and (b),
70.32(a)(3), (5), (6), (d), and (i), 70.36, 70.39(b) and (c), 70.41(a),
70.42(a) and (c), 70.56, 70.57(b), (c), and (d), 70.58(a)-(g)(3), and (h)-(j) are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C. 2201(b));
il 70.7, 70.10, 70.20a(a) and (d), 70.20b(c) and (c), 70.21(c), 70.24(b),
70.32(a)(b), (c), (d), (e), and (g), 70.36,70.51(c)-(g),-70.56,70.57(b)-and-----
(d), and 70.58 (a)-(g)(3) and (h)-(j) are issued under sec. 1611, 68 Stat.
949, as amended (42 U.S.C. 2201(i)); and-Il 70.5, 70.9, 70.20b(d) and (e),
70.38, 70.50, 70.51(b) and (1), 70.52, 70.53, 70.54, 70.55, 70.58(g)(4), (k),
and (1), 70.59 and 70.60(b) and (c) are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).
27 4
- 12. In i 70.25, the introductory text of paragraph (f)(2) is revised to read as follows:
6 70.25 Financial assurance and recordkeeping for decommissioning.
(f) * *
(2) A surety method, insurance, or other guarantee method. These methods guarantee that decommissicning costs will be paid. A surety method may be in the form of a surety bond, letter of credit, or line of credit. A parent company guarantee of funds for decommissioning costs based on a financial test may be used if the guarantee and test are as contained in Appendix A of 10 CFR Part 30. A parent company guarantee may not be used in combination with other financial methods to satisfy the requirements of this section. A guarantee of funds by the applicant or licensen for decommissioning costs based on a financial test may be used if the guarantee and test are as contained in Appendix B of 10 CFR Part 30. A. guarantee by the applicant or the licensee may not be used in combination with any other financial methods to satisfy the requirements of this section or in any situation where the applicant or licensee has a parent company holding majority control of the voting stock of the company. Any surety method or insurance >usedito provide-financial-assurance-for decommissioning must- contain- ,
the'following conditions:
PART 72 - LICENSING REQUIREMENTS FOR THE INDEPENDENT STORAGE OF SPENT NUCLEAR FUEL AND HIGH-LEVEL RADI0 ACTIVE WASTE
- 13. The authority citation for Part 72 continues to read as follows:
28
- ~ . . . - . - . - . - . . . . . . .-.
AVUl0RITY: Secs. 51, 53, 57, 62, 63, 65, 69, 81, 161, 182, 183, 184, 186, 187, 189, 68 Stat. 929, 930, 932, 933, 934, 935, 948, 953, 954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2071, 2073, 2077, 2092, 2093, 2095, 2099, 2111, 2201, 2232, 2233, 2234, 2236, 2237, 2238, 2282); sec. 274, Pub. L.86-373, 73 Stat. 688, as amended (42 U.S.C. 2021); sec. 201, as amended. 202, 206, 88 Stat. 1242, as amended, 1244, 1245 (42 U.S.C. 5841, 5842, 5846); Pub. L.95-601, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851); sec. 102, Pub. L.91-190, 83 Stat. 853 (42 U.S.C. 4332); Secs.131,132,133,135, 137, 141, Pub. L.97-425, 96 Stat. 2229, 2230, 2232, 2241, sec. 148, Pub. L.
100-203, 101 Stat. 1330-235 (42 U.S.C. 10151, 10152, 10153, 10155, 10157, 10161, 10168).
Section 72.44(g) also issued under secs.142(b) and 148(c), (d), Pub. L.
100-203, 101 Stat. 1330-232, 1330-236 (42 U.S.C. 10162(b), 1016B(c), (d)).
Section 72.46 also issued under sec.189, 66 Stat. 955 (42 U.S.C. 2239); sec. 134, Pub. L.97-425, 96 Stat. 2230 (42 U.S.C. 10154). Section 72.96(d) also issued under sec. 145(g), Pub. L. 100-203, 101 Stat. 1330-235 (42 U.S.C.
10165(g)). Subpart J also issued under secs. 2(2),2(15),2(19),117(a),
141(h), Pub. L.97-425, 96 Stat. 2202, 2203, 2204, 2222, 2244 (42 U.S.C.
10101,10137(a),10161(h)). Subparts K and L are also issued under sec.133, 98 Stat.- 2230 (42 U.S.C.10153) and sec.~ 218(a), 96-Stat.--2252 (42 U.S.C.-
10198).
For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273);
il 72.6, 72.12, 72.22, 72 ?4, 72.26, 72.28(d), 72.30 72.32,72.44(a),
(b)(1), (4), (5), (c), (d)(1), (2), (e), (f), 72.48(a), 72.50(a), 72.52(b),
72,72(b), (c), 72.74(a), (b), 72.76, 72.78, 72.104, 72.106, 72.120, 72.122, 72.124, 72.126, 72.128, 72.130, 72.140(b), (c), 72.148, 72.154, 72.156, 29
72.160, 72.166, 72.168, 72.170, 72.172, 72.176, 72.180, 72.184, 72.186 are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C. 2201(b)):
i i 72.10(a), (e), 72.12, 72.22, 72.24, 72.26, 72.28, 72.30, 72.32, 72.44(a),
(b)(1), (4), (5), (c), (d)(1), (2), (e), (f), 72.48 (a), 72.50(a), 72.52(b),
72.90(a)-(d), (f), 72.92, .72.94, 72.98, 72.100, 72.102(c), (d). (f), 72.104, i
72.106,72.120,72.122,72.124,72.126,72.128,72.130,72.140(b),(c),
72.142, 72.144, 72.146, 72.148, 72.150, 72.152, 72.154, 72.156, 72.158, 72.160, 72.162, 72.164, 72.166, 72.168, 72.170, 72.172, 72.176, 72.180, 72.182, 72.184, 72.186, 72.190, 72.192, 72.194 are issued under sec. 1611, 68 Stat. 949, as amended (42 U.S :. 2201(i)); and il 72.10(e), 72.11, 72.16, 72.22,72.24,72.26,72.28,72.30,72.32,72.44(b)(3),(c)(5),(d)(3),(e),
(f), 72.48(b), (c), 72.50(b), 72.54(a), (b), (c), 72.56, 72.70, 72.72, 72.74(a),(b),72.76(a),72.78(a),72.80,72.82,72.92(b),72.94(b),
72.140(b), (c), (d), 72.144(a), 72.146, 72.148, 72.150, 72.152, 72.154(a),
(b), 72.156, 72.160, 72.162, 72.168, 72.170, 72.172, 72.174, 72.176, 72.180, 72.184, 72.186, 72,192, 72.212(b), 72.216, 72.218, 72.230, 72.234(e) and (g)-
are issued under sec. 1610, 68-Stat. 950, as amended (42 U.S.C. 2201(o)). .
- 14. In i 72.30 the introductory text of paragraph (c)(2) is revised to
- read as follows:---- - -- . - - - - - -
172.30 Decommissioning Planning including financing and recordkeeping.
(c)
(2) A surety method, insurance, or other guarantee method. These ,
methods guarantee that-' decommissioning costs will-be paid. a4 surety method may be-in the . form of a surety bond, ' letter of credit, or line of credit. A 30 y . - . - - -
.m.,,.-,,,v-. . . , , , , - - ,,, . , ,- .,-,--,.-~,,#, , - . , . . - . e,e,.. ,, w-.. .m-..--, .-,-.w.-.,,
parent company guarantee of funds for decommissioning costs based on a financial test may be used if the guarantee and test are as contained in Appendix A of 10 CFR Part 30. A parent company guarantee may not be used in combination with other financial methods to satisfy the requirements of this section. A guarantee of funds by the applicant or licensee for decommissioning costs based on a financial test may be used if the guarantee and test are as contained in Appendix B of 10 CFR Part 30. A guarantee by the applicant or the licensee may not be used in combination with any other financial methods to satisfy the requirements of this section or in any situation where the applicant or licensee has a parent company holding majority control of the voting stock of the company. Any surety method or
- insurance used to provide financial assurance for decommissioning must contain the following conditions:
l DatedatRockville, Maryland,this1_f day of Januarv ,1993.
f the Nuclear Regulatory Commission.
l l
_, m._
fy uh '
aniGeTJ. Chilk, }
Secretary of the Commission.
31 1
, . _ . , . . . _ . . y -. ,. , , . . , . . , . , . ,