ML20236S939

Forwards Copy of Recently Approved Regulation in Fr 63FR29535,dtd 980601,which Permits Colleges & Univ to self- Guarantee Decommissioning Costs of Certain Criteria Met

ML20236S939
Person / Time
Site:	05000157, 05000097
Issue date:	07/22/1998
From:	Michaels T NRC (Affiliation Not Assigned)
To:	Aderhold H CORNELL UNIV., ITHACA, NY
References
NUDOCS 9807270335
Download: ML20236S939 (14)

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$~ 1 July 22,1998 t Dr. Howard Aderhold, Director ll Ward Center for Nuclear Sciences l Cornell University f Ithaca, New York 14853

SUBJECT:

FINANCIAL ASSURANCE FOR DECOMM!SSIONING

Dear Dr. Aderhold:

Enclosed, you will find a copy of a recently approved regulation in the Federal Register, 63 FR 29535, June 1,1998, which permits colleged and universities to self-gua~antee decommissioning costs if certain criteria are met. The criteria are on page 29542 under . Appendix E to Part 30, items I, llA, and llc. Also, the requirements in item til, "Self-Guarantee" needs to be complied with as needed. If you decide to self-guarantee, please provide which criterion you are using and the background to support this criterion. Also, a corporate of ficer has to provide the information required in Appendix E to Part 30, item lilD, of the new regulation. If you have any questions, please call me at (301) 415-1102. Sincerely, ORIGINAL SIGNED BY: Theodore S. Michaels, Sr. Project Manager Non-Power Reactors and Decommissioning Project Directorate Division of Reactor Program Management Office of Nuclear Reactor Regulation Docket Nos.: 50-97 and 50-157

Enclosure:

As stated / cc: See next page DISTRIBUTjQN: j HARD COPY EMAIL COPY Docket Files 50-97/157 AAdams WEresian PUBLIC CBassett, Ril SHolmes p PDND r/f TBurdick, Rlll Pisaac SWeiss PDoyle ' TMichaels TDragroun EHylton MMendonca RWood, PGEB h PDND:PM P TMichael n '5W iss i ' 7/ 7Y98 7 /98 7/22. /9 8 OFFICIAL RECORD COPY DOCUMENT NAME: G:\\SECY\\MICHAELS\\CORNASSU.WPD .4 3 ^ 7 .,p 9907270335 990722 's ; >.. e. - + ~ ' g',, 4 u PDR ADOCK 05000097 's p FDR L

d[ July 22, 1998 V 3 Dr. Howard Aderhold, Director Ward Center for Nuclear Sciences Cornell University Ithaca, New York 14853

SUBJECT:

FINANCIAL ASSURANCE FOR DECOMMISSIONING

Dear Dr. Aderhold:

Enclosed, you will find a copy of a recently approved regulation in the Federal Register, 63 FR 29535, June 1,1998, which permits colleges and universities to self-guarantee decommissioning costs if certain criteria are met. The criteria are on page 29542 under . Appendix E to Part 30, items I, ilA, and llc. Also, the requirements in item lil, "Self-Guarantes' needs to be compl:ed with as needed. If you decide to self-guarantee, please provide which criterion you are using and the background to support this criterion. Also, a corporate officer has to provide the information required in Appendix E to Part 30, item lilD, of the new regulation. If you have any questions, please call me at (301) 415-1102. Sincerely, ORIGINAL SIGNED BY: Theodore S. Michaels, Sr. Project Manager Non-Power Reactors and Decommissioning Project Directorate l Division of Reactor Program Management l Office of Nuclear Reactor Regulation i Docket Nos.: 50-97 and 50-157. l

Enclosure:

As stated cc: See next page ' DISTRIBUTION: H A R D C O P_Y EMAIL COPY Docket Files 50-97/157 AAdams WEresian PUBLIC CBassett, Ril SHolmes PDND r/f TBurdick, Rill Pisaac SWeiss PDoyle TMichaels TDragroun EHylton MMendonca RWood, PGEB PDND:PM P TMichael n /biss I' 7/)Y98 7 /98 7/22. /9 8 OFFICIAL RECORD COPY DOCUMENT NAME: G:\\SECY\\MICHAELS\\CORNASSU.WPD t

f*Guq g 4' UNITED STATES j - g j NUCLEAR REGULATORY COMMISSION WASHINGTON. D.C. 205two001 l o %....*/ l July 22, 1998 Dr. Howard Aderhold, Director Ward Center for Nuclear Sciences Cornell University Ithaca, New York 14853

SUBJECT:

FINANCIAL ASSURANCE FOR DECOMMISSIONING

Dear Dr. Aderhold:

Enclosed, you will find a copy of a recently approved regulation in the Federal Register, 63 FR 29535, June 1,1998, which permits colleges and universities to self-guarantee decommissioning costs if certain criteria are met. The criteria are on page 29542 under Appendix E to Part 30, items I, llA, and ilC. Also, the requirements in item lil, "Self-Guarantee" needs to be complied with as needed, if you decide to self-guarantee, please provide which criterion you are using and the background to support this criterion. Also, a corporate officer has to provide the information required in Appendix E to Part 30, item IllD, of the new regulation. If you have any questions, please call me at (301) 415-1102. Sincerely, S' a Theodore S. Michaels, Sr. Project Manager Non-Power Reactors and Decommissioning Project Directorate Division of Reactor Program Management Office of Nuclear Reactor Regulation ) l Docket Nos.: 50-97 and 50-157

Enclosure:

As stated cc: See next page l 4

'f: 1 Cornell University ' Docket Nos. 50-97/157 cc: Director, Bureau of Radiation, DHSR -~NYS Department of Environmental Conservation 50 Wolf Road - , Albany, New York ~ 12223-7255 Mr. John P. Spath NYS Energy Research and

Development Authority Corporate Plaza West

'286 Washington Avenue Extension Albany, New York 12203-6399-i l y 'i 1 I l t i l Li

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Fed:r:.1 Regist:r/Vol. 63; No.104/ Monday, Juns 1,1998/Rults and Regulations 29535 2 ~ Committee's recommendation, and ' Materials Safety and Safeguards, U.S. Background ' other information,it is found that-Nuclear Regulatory Commission, ~ finalizing the interim fmal rule, without Washington, DC 20555-0001. telephone On December 29,1993 (58 FR 687' 6)c 2 as corrected on Janu 12,1994 (59 FR change, as published in the Federal (301)415-6203, e-mail cwpearc. gov. 1618), the NRC publ ed a notice of Register (63 FR 11585: March 10,1998) SUPPLEMENTARY INFORMATION:,, final rulemaking that allows financially g will tend to effectuate the declared ~ Licensees sub}ect to 10 CFR parts 30, strong corporations with A or better. g policy of the Act. 40,70, and 72, whose operations bond ratings the option of using self-8 List ofSubjects in 7 CFR Part'989 involve the use of substantial amounts. guarantee as a mechanism for. = Grapes Marketing agreements, to to CFR Part 50 who are a plicants - financial assurance for of nuclear materials, and those sub}ect, complying with the regulations on ~ Raisins, Reporting and recordkeeping ~ acquirements. for, or holders of, operating icenses for. decommissioning. Self-guarantee was . production or utilization facilities must added to the list of financial assuratice-PART 989-RAISINS PRODUCED Provide financial assurance for -.. mechanisms as a cost-saving option for ' ) FROM GRAPES GROWN IN - decommissioning funding by selecting licensees that are able to meet th's ~ CALIFORNIA from a variety of mechanisms: sursty,, stringent fmancial test.. bond or letter of credit, re ayment, u The NRC's decision to add self. Accordingly, the interim fmal rule insurance, an extemal afnkfng fund . guarantee to the, list of approved. amending 7 CFR part 989 which was coupled with a surety or insuranced. financial assurance mechanisms for g published at 63 FR 11585 on March 10, parent company guarantee for licensees qualified licensees came in response to i l 1998,is adopted as a final rule without that have a qualifying corporate parent, a petition for rulemaking filed by change.. and, for certain fmancially strong General Electric and Westinghouse-Dated: May 26,1998. Corporations, self-guarantee. A (PRM-30-59, Notice of receipt tobert C. Keeney, statement ofintent regarding obtaining Published September 25,1991 (56 FR DeputyAdministmtor.Fruitand Vegetable. funds to satisfy decommissioning 48445)). %e petition presented a case Pmgmms. obligations may be used by some.. saving option for corporate licensees. for allowing self-guarantee as a cost-IFR Doc. 98-14422 Filed 5-29-98; 8:45 sml licensees that are governmental entitias (for example, public universities whose that an able tta pass a stringent financial charter provides for a direct link to the test.. 1 State Government).- +. -. . Su uent to the December 29,1993, od COhEAR MLAM ,yfg3,beonn ISSION 1 neees su as.. st dy de erm n er crit hospitals and universities, or to for-could be developed and applied by NRC g-10 CFR Parts 30,40,50,70, and 72 Profit licensees who do not issue bonds, IN DonProfit limnsees and non-bond-because the financial test for self-Issuing commercial licensees to use self-RIN 3150-AF64 guarantee uses the rating of the bonds. guarantee while maintaining the son-Guwe of Decoeloning issued by the licensee as one measure of { tired I I eo noe arding g Funding by Nonprofit and Non-Bond-IIC* ~ gt f dd funds when needed The study. "8 he NRCis ext ding e of e If - " Analysis' of Potential Self4uarantee AGENCY: NuclearRegulatory ' guarantee, previously limited to bond-Tests for Demonstrating Financial Commission. issuing industrial corporations, to - Assurance by Non rofit Co and Action: Final rulec addluonal cat'egories of qualiSed 8Itles d by 3 sume4ARY: ne Nuclear Regulatory Ne "E

• self t this Bonds," NN514 Mune 1997),

Commission is amending its regulations extension can be made without identified a variety of financial criteria 12 allow additional materials licensees and non-electric utility reactor licensees jeopardizing the present high level of, that cxiuld be applied to additional of)se Fguarantee. na Enancial criteriarios o ca financial assurance thatthe 3 who meet attain financial critwis to self guarantee funding for decommissioning obligation requires. decommissioning. Certain commercial Allowing qualified nonprofit and non-la this rule were selected by the NRC. corporate licensees who issue bonds am bond-issuing licensees to self-guarantee. based on infonnauon in this mp t resently allowed to self-guarantee will reduce the costs of complying with. Public t'a===nts on the Proposed Eule NRC financial assuranos requirements Re NRC ublished a notice of crit r a rufe I[ its , such as colleges, universities, ([ I"8 ",* A(ri low no profit 0,1997, g an ospitals, as well as some - ..r' i notics,16 comments were received: 2' p, e p.,s t to tocrR sa.rs(exs),an el cote . from States,6 from coll'8** and commercial licensees who do not issue utmer can muery the + -na sentas fundans ~. unimsides,3 fm n associadons,3 im"m bonds, to self-guarantee funding. twielre==nu with an esternal otaking fund, - 1 vided they meet similarly stringent Ldias g g g gdom,,n gey to, y ancial criteria. Allowing additional Nauce of Proposed Ratemaklas thei addresses contact. copies are evallable at current rates trinn qualified licensees to use self-guarantee decommluloni funding anurence imoso the U.S. Government Printins 08ncs. P.O. som reduces licensee costs while providing - a* d with utility restructwins(em aroet,wohinston Dc 204o2-422s tun phon.. adequate assurance that funds for - Fin arm AmuranceRequireannu tar (2o2) s12-220h w fran the Neuanal Technical g decommissioning will be available Decamminionlas Nucient Power Reactore.- a2 FR information Servica by writins NT13 et s2ss Post when needed. ersea, September te, ster). As of this Royal Road. Sprinsheld. VA 22141. Copies are proposedrui theNitct2 cons amending sie evallable nor inspection or copyins for a so. from EFFECTIVE DATE: July 1,1998* ' dennition of alectric ut!!!ty"and fying the % sha NRC Public Document Room at 2120 L Street distinction between fla ari f moeurance NW., washington DC: the PDR's malling address is FOR FURTHER DeFOfuAAT10si COeffAc1: Dr. m. h ni,n applicable to power re.ciar liceneses Mail Siop ti e. washinston. Dc ross s-oool; Clark Prichard, Office of Nuclear and non-power reactar n-a -, telephone (202) ss+-stra: six tro21 sa4-3343. , = -

• G

29536 - Federal Idgister/Vol 63, No.104/ Monday," June 1,1958/ Rules and Regulations ~ t.' s private corporations,1 fr'om a hospital. reasonably assume that such a college or extrapolate these extraordinary retums and 1 from the United States university can be allowed to self-Into tha future and to budget Enrichment Corporation. The. guarantee for 6 costs of. endowment spending accordingly. commenters all supported the extensfors decommissioning because it possesses However, in this context it is instructive cf self-guarantee to qualified nonprofit sufficient financial strength to obtain to note that for a representative group of and non-bond issuing commercial the necessary funds when they are institutions, the averaSe annual real lic nsees. Although some commenters needed. retum after spending for the 10-year urged NRC to adopt tige proposed rule Even assuming the prem.ise of the period ended June 30,1994,is 4.1 commenter, NRC does not believe that percent, but for the 20 years ended June as written, most favored some type of ' change to the financial criteria. reducing the multiple to 15.as the 30,1994, it is 0.9 percent." (1994 commenter suggests,is desirable. NACUBO Endowment Study, National

f. Fm, onca. l Criten. for Colleges oind Although a real rate of retum of 3 Council of College and University

~ o o Umverssties ~ . percent may eppear low under the Business Officers,1995, p. 4) The financial test criteria proposed for market conditions prevailing during Therefore,the NACUBO study colleges and universities were an A or certain periods, there is a substantial recommends strongly that institutions better bond rating or, for thou not - body of empirical evidence indicating keep their spending from endowment having a band rating, unrestricted that it is a reasonable assumption. If a below the rate proposed by the endowment of at least $50 million or 30 licenses who has been relying on a self-commenter.The report states that: times projected decommissioning costs, guarantee is required to fully fund a Historical precedent indicates that a fund whichever was greater.There were no trust fund for decommissioning in the invested approximately 60 percent in comments regarding the A or better year before the beginning of domestic and foreign stocks. 30 percent in bond rating, but several commenters decommissioning, and the licensee fixed income. and to percent in various other objected to the non-bond criteria as too relies on eamings from endowment to asset classes inevitably experiences recurring conservative. ' create the trust, it is the annual eamings periods of absolute decline in market values Comment: A commenter stated that of the endowment for the year ovw 3 years. Such a decline would trigger a the selected multiple of 30 times immediately prior to the mduction in spending for an institutica decommisaloning costs is excessively decommissioning that must equal the sticking to a licy of spending a fixed. ired amount.NRC has reviewed the perantage o a 31ar movi,ng evnage of conservative. NRC's basis for the 30 multiple is that an amount of money 30 17ormation provided in Ibbotson 199, dowmen pen times decommissioning costs invested Associates, Stocks, Bonds, Bills, and rete soported by responding institutions is 6.0 at 3 percent would yield an annual. Inflation 1995 Yearbook,1995, which percent. On average, the smallest am unt sufBcient to fund those costs. published a summary of market results endowments ($25 million and less) spent The commenter said that it should not for the 69 year period from 1926 to 1995 more (7.2 percent) than the largest (4.5 be difBcult to obtain secure investments for five categones of investments: small percent), and public institutions spent more yielding 6 percent; thus an appropriate company stocks,large com y stocks, (6.6 percent) than private institutions (5.7 multiple would be 15 based on long term government bon long-term Percent) * *

• With the sois exception of the investment yield.

corporate bonds, and intermediate-tenn 4.5 percent spent by the la73est univwsitia, these spending uta am not compante with Response: NRC's objective in selecting government bonds financial criteria was to provide a level On a year-by-year basis,less risky. h s ie ef financial assurance risk similar to the investments, such as treasury bills. Over time, it is possible [ difficult, but financial assurance risk in the existing showed the most frequent positive possible) for the exceptionally well-managed ' self-guarantee. However, for colleges returns but their annual retums also institution to spend 6.0 percent of a 3-year and universities that do not issue bonds,' were re,latively low Riskierinvestments moving everage of endowment market values, I lack of appropriate data on default risk showed a broad distribution of retums, and still preserve purchasics power. made a Anancial assurance riak analysis from very good torvery poor. Overall, However,it is courting disaster to spend at' impossible. For these 11censees, NRC however, with the exception of small. an annual rate of e.o percent toward the tali deliberately chose financial criteria - and large corepany stocks, the average 4 and of a long bull market. (1994 NACUBO which are conservative. Inflation-adjusted earnings (geometric Endowment Study,1995, p. 5) . NRC did state in the preamble to the mean) for these categories of Based on these considerations, the l p[roposed rule, at 62 FR 32296, thatinvestments were less than 3 percent. In NRC continues to believe that a " the multiple of 30 has been chosen a number of years, earnings for stocks relatively conservative criterion, such as because this would mean that any level also were less than 3 percent. nus, mal the 30 times requirement,is a of decommissioning costs could be - investment returns over a one-year reasonable critorion for the covered by the annual retum on an period may not even match conservative decommissioning self-guarantee test for l endowment invested at 3 percent." oemings assumptions. colleges and universities. The NRC does However,it is important to note that ne study of endowment sponsored ' not accept the commenter's NRC was not &W (1) that **T. by the National Council of College and recommendation to adopt a ~ institutions willin fact finance University Business Officers (NACUBO) substantially less stringent criterion. I decommissioning out of endowments; published in 1995 also emphasized a Comment: A commenter objected to (2) that endowments can be expected in concern for this eamings variability in - the requirement that unrestricted i all circumstances to grow at a rate of at its analysis of college and university endowment be at least 350 million or at I loam 3 percent annually; or (3) that endowment Investment. First, least 30 times the decommissioning cost 3 l institutions can be expected to NACUBO's study noted that current estimate, whichever is greater. The. f I reallocate up to 3 percent of their high rates of retum cannot be sicpected requirement should be compliance with l spending from endowments in a one.. to continue indefinitely "At a time eitner the 350 million figure orthe 30 q 7 year period. Rather, the criterion was when many public and private times decommissioning cost estimate, ( selected to serve as a measure of the institutions are searching for ways to but not whichever is greater, everall financial strength of the institution, indicating that NRC can. bridge the gap between revenues and. Response: As previously stated. NRC f. expenditures,it is tempting to chose conservative financial criteria for { t a

i[ Federal Register /Vol. 63, No.104/ Monday, June 1,1998/Rulis and Regulations 29537 a. non-bond-issuing colle8es and up front even though deconunissioning ~ ' decommissioning costs) was excess ~ ( universities, aimed at assuring the activities are not completed within a. conservative. It appears to reflect an financial viability of a licensee qualified single year. For this reason NRC's. k to self-guarantee. This is the only criteria for determinich whether & expectation that the decommissioning will take a short time whereas a realistic requirement that would apply to non-licensee should be allowed to self ' - time frame should be 2 years or more. bond-1ssuing colleges and universities,, guarantee the costs of decommissioning NRC should consider a multiple of 30 or whereas non-bond issuing hospitals or must consider the possibility that the commercial licensees would be subject Ilcensee will be mquired to fully fund ' less to be appropriate. to multiple financial ratios as financial decommluioning in the Res'ponse:The requirement that tests. It is designed to ca ure two immediately prior to the inning of. hospital operating revenues be at least - rnessures of financial vi ill overall financial strength an[t :(t) deconunissioning activities. ne ' 100 times decommissioning costs is a - (2) licensee would fund a standby trust 1,f th financial strength relative to sire of te Ine h r ce as either (1) the licensee no longer.. decommissioning obligation.The ' qualifies to use the self-guarantee to. sufficient financial strength to self, ~ overall financial strength of an provide financial assurance for guarantee. However, a potential institution is heavily dependent on the decommissioning, even ifit was not yet consequence of self-guaranteeing could size ofits unrestricted endowment. Specific ability to fund requhed to conduct decommissioning.. be the need to fully fund a trust fund in decommissioning expenses Is measured or (2) a limnsee using's self-guarantee > - a short period of time if the licensee is required to carry out ceases to be capable of passing the self-by the ratio of unrestricted endowment decommissioning. NRC currently does guarantee test or if decommissioning to decommissioning 8 costs. A M"""" not allow licensees to consider the must be carried out. As discussed above, test based only on ratio to impact of earnings during the " payout" the operating revenues multiple decommissioning cost might allow an period (the period during which funds criterion does not reflect any institution without adequate financial strength to pass ifits decommissioning are being expended from the finandal expectation conmming the length of assurance standby trust to pay fo. time during which decommissioning costs were low. A test based only on the decommissioning) la calculating the will ocx:ur. Therefore. NRC does not size of the unrestricted endowment might be inadequate for those amount of funds that must be sat aside accept this recommendation. institutions with the highest for dommmissioning.Therefore, the Cornment:A commenter found the decommiss!oning msts. Both threshold NRC disagrees with the commenter's requirements are needed to pmvide suggestion that the expected duration of rationale that requires hospitals to meet assurance that an institution can meet decommissioning activities should all four financial ratios tests unclear. decommissioning obilgations when apply to the detennination of the ' This commenter believed that using only the operating revenues / necessary. appropriate multiple. decomminioning costs ratio would Comment: A commenter stated that Comment: A commenter recommends' appear to provide reasonable assurana that (based on the conabination of, NRC's rationale for e multiple of 30 implies that decommissioning costs are investment yield of 6 perant and of ability'to provide decommissioning paid fmm investment yields over a 1-investment yields over 2 to 3 fundinI' year period. However,it is more rather than 1 yearl the multip on Response:The financial ratios test for malistic to assume that any factor (bel reduced from 30 to to with hospitals in the rule was carefully le conse selected to provide a level of financial decommissioning activities wherd - ""[esponse:rvausm."For the reasons stated in assurance risk similar to the fmancial - financial assurance arrangements ar* responses to thp preceding comments,. assurance risk in the existing self. involved will require considerable NRC does not acce coordination witn regulator and recommendation.,pt this guarantee. The four stion in. combination represent the rmancial test financial services involving 2 or 3 years .o to complete. This consideration also

2. FinancialCriterloforHospitals that best achieves this goal. A financial test using just one of these ratios would implies that the appropriate multiple The financial test criteria propose.d for not repmsent the same level of risk and should be 15 rather than 30.

hospitals was an A or better bond rating commissioning may ocx:ur over a or, for hospitals not having a bond would not provide an adequate level of. Response:NRC recognizes that financial assurance. Using only the ratio per:od longer than one year. The rating. a financial ratios test consisting of operating revenues to of the following:(current assets anddecommissioning costs would. mu tiple of 30 was chosen without (a) Liquidity-rer ud to how many years it would take to decommission a facility. The depreciation fund, divided by cunent completely ignore such determinants of liabilities) gnater than or equal to 2.55. financial strength as liquidity, conuenter is attempting to mcke this C)) Net Revenue-(Total revenues less Indebtedness, and profitability. The linkap' the key factor in arriving at an total expenditures divided by total financial test used for non-bond-issuing repriate multiple. However. revenues) greater than or equal to 0.04. commercial licensees includes several-ap$owing this line of reasoning...... _ (c) Leverage 41ong term debt divided rados, n t Nst one. The non tad fol stretching out the time length of decommissioning wouldimplyever by net fixed assets) less than or equal t d 0.67. ersities d ss sin 8I ratio, but decreasinhmulti les. (d) Operating Revenues at least 100 -it is the ratio of unrestricted endowment NRC's c ectiv is to ensure that times decommissioning costs. to decommissioning costs. Unrestricted I decommissioning will take place on a There were no comments regarding' endowment is a fund readily available i l timely basis. The financial assurance the bond rating criterion but there were to meet decommissioning expenses.- regulations are intended to assure that several comments on the non-bond Hospital operating revenues are inadequate funding does not prevent criteria. different because these funds may not timely decommissioning. Timely Comment: A commenter believed that s be readily available to meet ) decommissioning may aquire that all the selected multiple of100 (hospital decommisslor.ing expenses due to other decommissioning funding be available operating revenues at least 100 times hospital costs. ~ ~ l l l

?. 4 Fed:ral Register /Vol. 63. Ns.104/Menday, June 1.1998/Rults t:nd Regulations 29537 i non-bond-is' suing colleges and up front even though decommissioning ' ~ decommissioning costs) was excessiv f. universities, aimed at assuring the ~ activities are not completed within a : . conservative. It appears to reflect an financialviabilityof alicensee ualified single year. For this reason NRC's. ,I to self-guarantee. This is the o criteria for determining whether a 1 _ expectation that the decommissioning will take a short time whereas a realistic requirement that would apply to non-licensee should be allowed to self ' bond-issuing colleges and universities., - guarantee the costs of decommissioning - time frame should be 2 yea NRC should consider a multiple of 30 or whereas non-bond-issuing hospitals or must consider the possibility that the ' less to be appropriate. commercial licensees would be subjed licensee will be required to fully fund. to multiple financial ratios as finant lal decommissioningin,the Respoisse:ne requirement that tests. It is designed to ce ture two immediately prior to th innisg of - hospital operating revenues be at least - measures of finandal vi 111 (1) decomrnissioning activities. ne. 100 times decommissioning costs is a - overall financial strength an (2) licensee would fund a standby trust if cd th Snancial strength relative to size of either (1) the licensos nolonger.. dete a h decommissioning obli ation.%e ' qualifies to use the self-guarantee to.. sufficient financial strength to self, - overall financial stre ofan rovide financial assurance for Suarant** H"*Ver.

• Potential Institution is heavily ndent on the commissioning. even ifit was not yet consequence of sel teeing could size ofits unrestrict dowment.

Specific ability to fund required to conduct decommissioning...be the need to fully d a trust fund in decommissioning expenses is measured or (2) a licensee using's self-guarantee a short pedod of tirne if the licensee by the ratio of unrestricted endowment is required to carry out ceases to be ca eble of passing the self-decommissioning. NRC current! 'does guarantee test df decommissioning to decommissioning costs. A Ma="" not allow licensees to consider "'ust be carried out. As discussed above, test based only ou ratio to impact ofearnin during the

• ut" the operstmg revenues multiple decommissioning cost might allow an period (b peri during w funds criterion does not reflect any institution without adequate financial m being expended from b Enanedal expectation concerning the length of strength to pass ifits decommissioning assurance standby trustic for time durin will ocx:ur,g which decommissioning costs werelow. A test based only on the decommission in cal ting b :

herefore, NRC does not size of the unrestricted endownwat amount of fun t must be set aside accept this recommendation. might be inadequate for those institutions with the highest for decommissioning.nerefore, the Comment: A commenter found the decommissioning costs. Both threshold - NRC disagrees with the comrnenter's. rationale that uires hospitals to meet requirements are needed_to provid* suggestion that h expected duration of all four financi ratios tests unclear.- assurance that an institution can meet decommissioning activities should - decommissioning obligations when. apply to the determination of the ~.,- His commenter believed that using ropriate multiple. only the opereting revenues / ~ a necessary. mment: A commenter reenmmands. decommissioning costs ratio would Comment: A commenter stated that NRC's rationale for a multiple of 30 that [ based on the combination of ' ap to provide reasonable assurance of lity'to provide decommissioning es that decommissioning costs are investment yield of 6 percent and, from investment yields over a 1-investment yleids over 2 to 3 e rather than 1 arlthemultip ation Response:The linanciai ration test for year riod. However,it is more reali c to assume that any factor (be) imm 30 to to with. hospitals la the rule was carefully le conu selected to prende a level of financial decommissioning activities wherv - '"/esponse:rvatism."For the reasons stated in assurana risk similcr to the financial - financial assurance arrangements are involved will utre considerable responses to thp preceding comments,. assurance risk in the existing self.. coordination wi regulators and NRC does not accept this guarantee. The four ratios in. recommendation...a - combination represent the financial test financial services involving 2 or 3 years that best achieves this goal. A financial to complete. This consideration also 2.FinancialCriteriaforHospitals test using just one of these ratios would implies that the appropriate multiple ne financial test criteria proposed for not to resent the same level of risk and should be 15 rather than 30.. Respoase:NRC recognizes that hospitals was an A or better bond rating decommissioning may occur over a or, for hospitals not having a bond woul not provide an adequate levelnf-financial assurance. Using only the ratio period lon r than one year. De rating. a financial ratios test consisting ' of operating revenues to multi le o 30 was chosen without of the following. (a) Liquidit -(current assets and - decommissioning costs would. reg to how man ears it would take de rociation d, divided by current - completely ignore such determinants of to decommission a ty. H e 11 lities) greater than or equal to 2.55. financial strength as liquidity, commenter is attempting to rrake this (b) Net Revenue-{ Total revenues less Indebtedness, and profitability. The linkege the key factor in arriving at an total expenditures divided by total financial test used for non-bond-issuing repriate multiple. However. revenues) greater than or equal to 0.04. commercial licensees includes severalm a f owing this line of reaso ./.-.- (c) Leverage-(Long term debt divided fratios* not just one* The non-bond stretching out the time length I by net fixed assets) less than or equal t decommissioning would imply ever 0.67. ie tie d : inEI ratio,but decreasin multi les.. (d) Operating Revenues at least 100 -it is the ratio of unrestricted endowment NRC's }ectiv is to ensure that decommissioning will take place on a - times decommissioning costs. to decommissioning costs. Unrestricted There were no comments regarding' endowment is e fund readily available timely basis. The financial assurance the bond rating criterion but there were to meet decommissioning expenresc regulations are intended to assure that several comments on the non-bond Hospital operating revenues are inadequate funding does not prevent criteria. different because these funds may not timely decommissioning. Time Commerit: A commenter believed that s be readily available to meet decommissioning may require at all the. selected multiple of 100 thospital decommission.ing expenses due to other decommissioning funding be available operating revenues at least 100 times hospital costs. b uf l

2'9538 Federal Raglaser/Vol. 63, No.104/ Monday, June 1,1998/Ru'hs and Regulations V .3. Prohibition on Using a Guamntee in rating, despite declines in the finandal accounting prindples to assess Combination With AnotherFinancial.. condition of the issuerc crampliance with a financial test Assurance Mechanism The problem with an insured bond designed using U.S. GAAP. Finally, the from the standpoint of financial present financial assurance regulations Comment:Some commenters noted assurance is that there is no criterion by allow the use of a broad range of that p'rovisions in 10 CFR 30.35(f)(2)'), which NRC can identify when a financial assurance mechanisms in art 40.36is)(2), 50.75(e)(2)(iii), 70.25(f)(2 licensee / issuer no longer qualifies to to ensure that licensees that are una le and 72.30(c)(2) provide that neither a self-guarantee. He bond can retain its to uso a particular mechanism have parent company guarantee nor a high rating des e a decline in the ' other alternatives available. NRC does a 11 tm be d financial stren of theissuer. not expect firms to change their [t Furthermore, e insurance coverage accounting practices in order to make methods to satisfy finandal assurance provided by the bond insurer, which is use of the financial test because a requirements.These commenters a guarantee of payment of principal and number of other options are available. . wanted to know the reasons for these interest in accordance with the insured

6. FinancialCriterioforNon-Bond-bond issue's pabsat schedule, will not metrictions. '

1. "I
2. ""*"I ##"3"8 C

Response:This rule makes no change provide any ad onal source of in the already existing prohibition lunding for decommissioning. NRC does The financial test proposed for non-commerciallicensees was: against combining a parent or self-not agree with the commenter's bond issuinhow divided by total (a) Cash guarantee with another type of finandal suggestion that it accapt ratings on Inabilities greater than 0.15, assurance m=Aanisru.He issue of - insund bcmds as an acceptable criterion (b) Totafliabilities divided by not whether or not to allow such a for self-guarantee. combination is broeder than the focus of worth less than 1.5. this rule. The NRC has limited

5. Requirements for Financial (c) Net worth greater than 310 million Statemente or at least to times decommissioning experience with parent and self-guarantee to date. It is expected that the Comment:Some commenters objected costs, whichever is greater.

Comment: A commenter objected to NRC will periodically reevaluate its to the proposed requirement in the not worth criterion of not worth finandal assurance program in the Appendices D and E to 10 CFR Part 30 future and could reassess the need for that licensees must conduct accounting greater than 310 million or at least to times estimated decommissioning costs. the prohibition. by U.S. generally accepted accounting his discriminates against well-funded Prindples (GAAP). This does not

4. Insured Bend Eiungs recognize the increasingly multi.

sma'ller firms that could easily self-Comment:Some mmmenters objected national nature of materials licensess. guarantee smaller decommissioning t> the proposed financial criteria which Foreign ownership of ms}or material Projects,but could not meet the 310 deal withbond ratings. As proposed, for licensees is currently a reality (e.g., million not worth requirement. Institutions that issue bonds, only a Siemens, ABB, Frematome) and can be Response:The NRC's objective in bond issuance that is " uninsured" may ed to increase in the future.The setting finandal criter's for non-bond-on of accounting practices to be issuina commerciallicensees was to be used; an " insured" bond rating se would not be eligible. *sbe justification used is a significant corporate dodsfon make t'ho financial amurance risk of for thislimitation is not warranted affected by many factors. It is these criteria equal to the financial because bond insurers evaluate the unreasonable to require that c rate assurance risk of the financial criteria practicas of me}or multi-natio firms for licensees that issue bonds (estimated financial condition of the prospective ' be changed for a licensee to be allowed to be approximately 0.13 percent per issuers and avoid issuing policies to , universities that are not creditworthy. to provide self-guarantee of year). According to the analysis of Consequently, the presence of bond d===lasioning funding. no rule potential financial criteria carried out as insurance indicates that the issuer is in should allow licensees to certify part of the proposed rule, the financial sound financial condition. adequate assurance that funds will be criteria in the proposed rule meet this Response: Bond insurers evaluate the available by using other recognized and objective.8 Firms with smaller not worth financial condition of the issu'.rs of the - accepted accounting principles. have a larger default risk than larger bonds at the time the debt is insured.

• Response:Financialstatements firms.nus, the 310 million not worth Bond rating agencies, such as Moodys.

prepared in acx:ordance with foreign requirement is an essential part of the . and Standard and Poors, typically accounting principles rather than U.S. overall financial test.The NRC has l assign such bonds a triple-A rating GAAP pose two problems from the retained this requirement in the final becauan of the insured status of the . standpoint of a financialtest for self-rule. I band. guarantee. First, the financial test was

7. Decommissioning Cost Mmotes 4

. NRC's concerns with a:cepting developed based on an analysis of Comment:Several commenters raised insured bonds as a criterion of financial financial data for U.S. firms. ^ assurance arise from the possibility that. Consequently, the financial test criteria ' the issue of how decommissioning costs over time, the insured bond rating could. may not be applicable or offective when were estimated. The NRC should ruask adverse changes in the financial used in conjunction with financial data encourage best available information condition of the bondissuer after the that were prepared in accordance with estimates of decommissioning costs, debt has been insured.The rule foreign accounting practices. Second. . based on historic plant experience in includes a requirement that the licensee allowing firms to rely on financial decommissioning and renovation, rather must ascertain whether it continues to statements prepared according to than commercial estimates by pass the financial test for self-guarantee accounting principles in use in thel.r contractors that tend to be too high. every year. Furthermore,if the licensee own country could place a heavy. n3 longer meets the test criteria, it must administrative burden on NRC. The Analrsk of Poe.nual s.tr<;uarante. T

t. sor

'4 Danonstrauns nancial Assuranc.Wonprent n I notify NRC and establish altemative examples cited by the commenter, for financial assurance. However, insured instance, might require NRC to know NNi,jrYo*",foflYs(. UREG/ bonds would continue to hold their and apply German, Swiss, and French cn-4s s e. p. e.7, Jun. ioer. s 6

.k ~ ~ 4 Fed:r:1 Regist:r/Vol. 63, No.104/ Monday, Jun3 L 1998/Rults <nd Regulations' 29539 'r Conservative assumptions, such as use adopt the essential objectives of these CFR Part 76). USEC stated that it would of rates charged by contractors and high sections in order to mgintain an ; beneSt from the rtual y to reduce estimates of waste disposal costs, adequate program.The remaining the costs of comp g wi NRC should not be used. A commenter also sections of the rule, including those financial assurance requirements, which noted that assuming a period for shon-which allow self-guarantee of certain. USEC estimated would presently cost in lived isotopes to decay before commercial corporate licensees who. excess of $t00.000 per year for letters of decommissioning begins would be a issue bonds if they meet stringent. credit and surety bonds. realistic assumption. Also, a typical financial criteria, wem designated as.. Response: Under to CFR 76.35(n). licensee will not have the maximum compatibility Category D. Category D USEC (or the Corporation) is requimd to amount of material allowed by the means the Agreement States do not need establish financial surety arrangements ' license at the time of decommissioning. to adopt a compatible rule.... to ensure that sufficient funds will be - Response:This rulemaking makes no The final rule change, which will available for the ultimate disposal of

hanges in the requirements for how., ' extend the self-guarantee financial ' -

waste and depleted uranium, and..- _. licensees estimate decommissioning assurance option to other material and decontamination and decommissioning costs. Decommissioning cost estimates, non-electric utility reactor licensees that activities that are the financial or use of the certification amounts in 10 meet certain financial criteria, is also responsibility of the Corporation. The ~ CFR Pan 30 are aheady required by designated as compatibility Category D. funding mechanisms currently listed in existing regulations on financial Under compatibility category D - the' regulation as potentially acceptable assurance. This rule simply adds an Agreement States may choose to for use by the Corporation include additional financial assurana maintain a more stringent rule by r.ot prepayment, surety, insurance, and an mechanism to those already permitted adopting the self-guarantee option. external sinking fund, but do not' in NRC regulations. 9.RequirementforAnnualPassage of include self-guarantee or statement of

8. Agreement State CompatibilityStatus Financial Test intent. The rule rovides that the offinancial Assumnce Regulations -

gg,gg,,,ey,,{,, jag,g,,,,,, Comment: A commenter stated that availab!!ity of funds for any activities Comment:Some commenters believed Section EC.(2) of Appendix E to Pan 30 that are tsquired to be completed" b that the proposed regulations should be should be modified so a qualifying 'the Corporation. ~ assigned a compatibility status ofImvel limnase would not have torepeat USEC was created pursuant to the 1 with Agmement States. This will passage of the financial test for self-Energy Policy Act of 1992. It is a wholly resure consistent requirements for. guaranteo every year. University owned government corporation, whose financial surety arrangements and will endowments are very stable. In. powers are vested in a five-member ~ preclude the unintended creation of addition, Section EC.(3) provides Board of Directors appointed by the competitive disadvantages between sufficient assurance that NRC will be. President of the United States and facilit;es in Agreement States and Non-notified when a licenses no longer confirmed by the Senate. However, on Agreement States. meets the criteria for self-guarantee. - July 25,1997 a plan was approved by " Response: When the proposed rule Response: Although it is true that. the Pmsident under which USEC will be was published in the Federal Registe' r ' university endowments are relatively sold either to anotherco ration or to (see 62 FR 23394, April 30,1997), it was stable and Section II.C.(3) provides for the public through a st offering. designated as a Division 2 compatibility notification, the provision for qualifying Under the USEC Privatizrition Acti item in accordance with the licensees to annually pass the test is - . Congress set certain restrictions'en compatibility policy in effect at that, retained in the final rule. For a self-foreign involvement in' USEC's ' time. A Division 2 level of compatibility guarantee prograrn to provide adeqt. ate privatization and required that s' l allowed an Agreement State to assurance of decommissioning funrdng, " reliable and economical domestic promulgate equivalent, or more the annual "requalification" provision. source of enrichment services" exist + stringent, financial assurance is necessary. NRC must have assurance following privatization. regulations than those of NRC. of financial strength on a timely b asia. Although the NRCis not currently ~ Under the new " Poll Statement on A self-guarantee relies solely on tie aware of any mason why it would be Adequacy and Compati Ility of licensee's ability to fund . inappropriate to consider expanding the Agreement State Programs," (see 62 FR decommissioning. There is rio backup category of funding mechanisms 46517, September 3,1997) Agreement such as that provided by a third party available to the Corporation to States must adopt NRC regulations financial assurance mechaniszo. The demonstrate the availability of funds for having particular health and safety - requirement for repeating the Gnancial the actions required under 10 CFR significance and thcse necessary to test yearly is not unduly burttensome on 76.35(n) NRC does not believe that it. maintain compatibility with the a limnsee and gives NRC information on. would be feasible to do so in the current Commission's agulatory program. the financial condition of the licensee rule.First, USEC was not included in The NRC financial assurance on a timely basis. This requirement is any of the analyses perfonned to regulations,in effect when the new not unique to colleges and universities evaluate potential self-guarantee tests Policy'wasimplemented,were.T ~ or to this rule. It is found in the self. for demonstrating financial assurance. designated as having health and safet significance. Specifically, sections (a)y guarantee financial tests spplicable to e NRC believes that delalled analyses. other t s oflicensees, both profit 'and. should be undertaken to ensure that all (b), and (d) of Parts 30.35,40.36 and. ~ ~ nonpro .., n. critical factors have been considered. l 70.25, which require that licerisees must consider the cost of decommissioning

10. Use of Self-Cuomntee by the Unitcd _ Second. USEC's current and future-situation with respect to the costs that their facilities and that those costs must. States Enric1 ment Corpomtion it might incur is substantially different,,

3 be provided for through a financial Comment:The United States ' from those of the licensees included in assurance mechanism, have particular Enrichment Corporation (USEC) .c the current rulemaking. In particular, heahh and safety significance and were m s designated as category H&S. Under the. proposed that the NRC modify the the scope and type of activities that language of the rule to include -, USEC must carry out under 10 CFR HAS category Agreement States should : certificates (regulated by NRC under 10 76.35(n) are very different from those ~ ( ~ A s 1

29540 Fed'eral Register /Vcl. 63' No.104/ Monday, June 1,1998/ Rules and liegulations b' asis. Therefore, Category D has been' l conducted b hospitals and universities, which can be used by kualified assigned to these rule provisions. and the non ond lasuing firms covered nonprofitlicenseesan non-bond. issuing licensees. Findin ofNoSignificant by thed,rohsed rule. exact size of the obligations. Appendix D is added to 10 CFR Part En h d Imp AnHability '. l ni t that USEC might be utred to cover is 30 to establish requirements for self-uncertain and will n determined guarantee by non-bond-issuing The amendments will allow qualified until a later date, although it is known commentiallicensees. Appendix E is nonprofit and non-bond-issuing j responsibility of the U.S. Department of. added to 10 CFR Part 30 to establish licensees the option of using self-I that many of the costs will remain the requirements for self-guarantee for guarantee as a mechanism for financial Energy (DOE). Under 10 CFR 76.35(n), ' nonprofit college, university, and assurance for decommissioning. For-i DOE is respot.sible for those aspects of hospitallicensees. { fit corporate licensees that issue ds are already allowed to use self. i

• decontamination and decommissioning 20 Nart M.

guarantee if they meet the regulatory i of the gaseous diffusion lants(GDPs) assigned to DOE under t e Atomic Section 40.36 is amended to permit criteria. Other licensees currently may Energy Act. DOE also is responsible for - self-guarantee for financial assurance elect to uso a variety of financial dl environmental liabilities associated which can be used by qualified assuran<:e mechanisms, such as surety' with the operation of the GDPs before nonprofit licensees and non-bond. bonds, letters of credit, and escrow accounts to comply with July 1,1993. According to USECs issuing licensees. _p ende$ r$ prof t and Annual Report for 1996,"[eixcept for 20 CFR Part 50 acti i e ed a o u of d Section 50.75 is amended to permit non-bond issuing nuclear materials ment entered into prior to self-guarantee for financial assurance hcensees and non-electric utilit reactor ~m tizatirin, all environmental which can be used by qualified . licensees greater flexibility by a lowing e babilities of the Camp y through the non refit licensees and non-bond. an additional mechanism for licensees date of privatization w I remain . iss, g Econsees. ' that rneet the Snancial cdteria for use of obligations of the U.S. Covernment." ' 10 CFR Part 70.,.' f 1.t N,$ to the NRCs lations 'es al Section 70.25 is amended to permit simply adds one more financ a yg tt s)* self "arantee for financial amurance assurance mechanism to the 8 as of June 30,1996 USEC had accrued liability of $303 million for which ce be used by hudified ' - ' mechanisms currently' available. It does rofitIIcensees'an non-bond not affect the cost of decommissioning non[ng licensees. materials and non-power reactor transportation, conversion, and- ,, g,,, disposition of depleted uranium facilities. Allowing self-guarantee for + currently stored at the GDPs.ne 1996 20 CFR Part 72 additional t es of licensees does not Annual Report states that "USEC is Section 72.30 is amended to permit lead to any crease in the effect on the i~ evaluating various proposals for the self-guarantee for financial assurance environment of the decommissioning disposition of depleted uranium, and - which can be used by qualified non-activities considered in the final rule a depending on the outcome of such bond issuing licensees.- published on June 27,1988,(53 FR evaluations, the Company may be'able 24018) as analyzed in the Final Generic l 13 reduce future cost accruals * * *. ' Compatibility of Agreement State EnvironmentalImpact Statament on t Pursuant to the USEC Privatization Act, Regulations Decommissioning of Nuclear Facilities all costs and liabilities related to the The current NRC regulation which (NUREG-0586, August 1988).' disposition of depleted uranium allows self-guarantee of certain Promulgation of this rule does not generated prior to the privatization date-commercial corporate licensees who introduce any impacts on the .are the responsibility of DOE." Fourth. Issue bonds if they' meet stringent environment not previously considered u u til privatization has occurred.. financial criteria is designated as by the NRC.Derefore, the Commission important information about USECs compatibility Category D. This final rule has determined, under the National future corporate structure and change, which willextend the self-Environmental Policy Act of 1969, as ownership will remain uncertain. As . guarantee financial assurance option to' amended,and the Commissio ?s nited above, Congress has allowed other material and non-electric utility regulations in subpart A of 1C CFR part USEC to be sold either to another reactorlicensees that meet certain 51, that this rule would not be a major corporation or to the public through a Federal action significantly affecting the c*ock offering. Thus, the form in which '. An=adal criteria,is also designated as a compatibility Category D. Category D quality of the human environment, and ' privatization occurs could affect the - . means the agreement States do not need therefore an environmentalimpact . NRCs analysis of financial assurance _ to adopt a compatible rule. The Category statement is not required.No other alternatives. Because of the need to ~ D designation was determined in agencies or persons were contacted in evaluate all of these factors, NRC has accordance with the new " Policy making this determination.The NRC -, determined not to include 10 CFR part Statement on Adequacy and 7 staffis not awam of any other 72in the current rulemaking. - Compatibility of Agmement State documents related to the environmental + - Changes From the Proposed Rule Pmgrams," approved by the Commission on June 30,1997.He final

• Coptes are available at current rates frorn the nere are no changes from the

'J rule change does not involve a basic u.s covernrneni Printins orrice. P.o.aox 370sa. Proposed ruly. radiation protection standard, activities $ " d y 8 $ 2s opgl2 ja Section by.Section Description of that have direct and significant eflects Service tm wriung NTIS at 5;s5 Port Rr2yal Road. Changes irt multiple jurisdictions, or essential sprins eld.vA :tet. copies are evaliable for n objectives which an Agreement State inspection or copying for a fee from the NRC Public .JO CFR Pmt 30 should adopt to avoid conflicts, gaps, or D curnent Room at 2120 L Street NW Washington, Soction 30.35 is amended to permit - ' duplications in the regulation of wi, fin,$n*,N373 %,To fl$'3 I self-guarantee for financial assurance agmement material on a nationwide-sam (analsu-ases. s e e 5

1, ].7 Fedhrd Regist:r/Vol.'63,'No.104/ Monday,' Juns 1,1998/Ruiss end Regulations. 29541 ~ i impact of this action.'Ibe foregoing Regulatory F1-lhauty Certi8 cation, Radiat1on protection, Reporting and 3-constitutes the environmental i In accordanm with the latory mcordkaping miuirements, Scient16c assessment and finding of no signiScant Flexibility Act of1980 (5 U..C 605(b)), og ment, Security measures, Special s ?. impact fw this mle. a the Commission certines that this rule n material . ill not have a significant economic to CTR PW ri ' * ' - g Paperwork Reduction Act Statement w d'I " Itis Anal rule amends information "("d*",g M88 Power t' raining

s. Nuclear ld P8"d materials.Occupati foty and collection requirements that are subject i

to the Pa rwork Reduction Act of 1995 number of options available to licensees hule, Repmung ud mcmdkapkg l Io com wie se mion ~ (44U.S. 3501 et seq.). '!hese g, ,g as uirements, Security m**8um8, S ent P 1:ements were approved the b enhancing the flexibility of these For'the reason's set out in the ce of Managernent and lada Rhwh W b & M ~ (OMB), approval number 3150w0017.. $1d resuh h sigidBam am avkgs Weamble and under the authority of the -4020, =4011 -0009, and -0132. - to q,,gg gconnes. ^ Atondc Energy Act of 1954, as amended, h public ng burden for this the ization Act of1974, ' i informatim col action is estimated to BackSt Analysis as amen , an 5 U.S.C 553, the NRC - average 9 to 14 hours

neponse,

,.!be NRC ha ddwmbd'the isad the following amendments-including time for rev back8 rovisions (10 CFR 50.10g to 10 30,40,50,70, and 72. Instmeions, search exisung data and 72.62, the parts of the PART30-JtULESOFGENERAL c data neebthering an maintaining the,Canm mgulad &a iming i

souscos,

, and completing and - APPLICAtluTY TO DORAESTIC g r myiewing se infenation coHecdon apply to this rule because the rule does Send -==nts on any as ofthis IIA""I" notimpose a back8t as denned in to r infenaden coHecdon, CFR 50.109(a)(1) or 72.62(a). N rule" 1', The authority citation for Part 30 exten s e selfptse altwnsive fu conunues k med a fouw t d the ntY (T-4 F33), U.S. 888888088 8" " RImI88I"S Aashortyi secs. 81,82, tst.1s2.183, tes, a Saancial asumace to quaH8ed am-se seat. ess, see, ess, m, ess, as amendmi, NucleIsr lat"Y ommission, At and non-bend issuing H=a-emc. 234, as seat. 444, as masaded (4a U.S.C C Wasidnska DC20555-0001,orby the avaliebili of this option att1,a112,3a01,3232,2:33,223s,22sak Internet electronic anan at does not pose a new on secs. 301, as amended, not, aos, as stat. B)SGNRC. GOV;and to the Desk OfRear, ggasosos,orco m m,cing , cian 1243, e ammaded,1244,134s (42 U.S.C OfBco ofInformation and Regulatory m 1,sa42,seest... Affairs, NEOB-10202. (315tM1017), or independent ope.nt fue g,,,gggg,,, gggggg,3, , g,. Secdon 30.7 slao lasued under Pub. L. OfBoo of ment and Budget, rulernaki does not conditute a t 95-401, sec.10,92 Stat. 2951 (42 U.S.C Washington, 20503. and a t anal 5851). Fection 30.34(b) also issued l for &ls Saal rule.ysis was not prepared under sec.184,88 Stat. 954, as amendel PuhucFreesc6enNada-H== (42 U.S.C 2234). Semion 30.81 also If a doepment used to impose an , uma ofsubgens *. - - issued under sec.187, sa Stat. 955 (42 information collection does not dip y a currently valid OMB control n U.S.C 2237). ,, g,, p,,,,,

2. In 5 30.s, paragraph (b) is revind 'o t

the NRC may not conduct or sponsor, B uctinpterial, Criminal ' ' seed a foHows.. f anda is not to respond , Government contracts,'. 'g' I to, information co torswornmentalrelations Isotopes.: S#s.8 Insermanensensesen ,t Nuclear materials, Radiation protection.. mapuisemente: cess appreunt. ~ j j negniatory Analysis Reporung and recordkeeping. The NRC has prepared a latory . requiressents. (b)b approved information analysis on this regulation. analysis 1' F collection requirements contained in araminas the costs and benefits of the to CFRMo i ,e~ this part appear in 55 30.9,30.11,30.15, ahernatives considered by the NRC h Criminalpenalties Government 30.13,30.20,30.32,30.34,30.35,30.38, analysis is available for ins on in contracts. Hasardous meterials. 30.37,30.38,30.50,30.51,30.55,30.56, l-the NRC Public Document ,2120 transportation, Nuclear metadala, and Appendices A.C D,and E of this L Street NW (Lower 14 vel), W"'t.. Reporting and== ",ing part. e + DC le copies of the ana is may be._ - ts, Source meterial - obtal from Clark Pri OfBoo of Ur'anium. ,u ^ 3,in 5 30.35, the introductory text of Nuclear Materials Salsty and "I * ' ~ ' P (f)(2)is aviend to read as h to CFW so ~ Safeguards, U.S. Nuclear Regulatory ows-Commission, Washington, DC 20555, - ' Antitrust, Class 18ed information. - --.-m. " " - *~-- telephone (301) 415-4203. - Criminal penalties Fire protection, 430.35 Finanotelsoeuronesand Intergovernmental relations, Nuclear moordheeping for desemmissioning. Small Buenness Regniatory Enferesument powe =[on,ts and readon, Radladen. ' *

• ~ *.

lan Fairness Act row d Randor dung critwin,, (f) * *

• in accordance with the Small and recordkeeping '.. c.

(2) A surety method,insurana, or other guarantee method. These methods Business Regulatory Enforcement requirements. d Fairness Act of 1996, the NRC has s-guarantee that =-=8ssioning costs determined that this action is not a 10 CFR Pad 70-1., will be paid. A surety method may be " major rule" and has verined this-Criminal penahles. Hazardous A ln the form of a surety bond, letter of determination with the Office of ' materials transportation Material, credit, or line of credit. A parent Information and Regulatory Affairs, control and accounting, Nuclear company guarantee of funds for. l OfBce of Management and Budget. materials, Packaging and containers, decommissioning costs based on a e

4 9 e s 29542 , Federal Regist:rA/ol. 63, No.'104/Mond2y, June 1,1998/Rults end Regulations c n c financial test may be used if the - t company is responsible es self-guaranteeing ^ Commission, the licensee will set up and fund a trust in the amount of the cunent cost { guarantee and test are as contained in, licensee and as parent-guarantor. (2) Assets located in the United States estimates for decommissioning. cppendix A to this part. A parent at 1 ens al company guarantee may not be used Ins """",u ,,,,o l eogant Appendix E to Part 30-Criteria ( ,9 ent combination with other financial decocamissioning cost estimate (or the. Relating to Use of Financial Tests and c methods to satisfy the requirements of current amount required if certification is Self. Guarantee for Providing c this section. For commercial used) for all decommissioning activities for Reasonable Assurance of Funds For corporations that issue bonds, a ' which the company is responsible as self-Decommissioning by Nonprofit ( ( arantee of funds by the applicant' r

• guarantwinglicensee and as parent'

.; Colleges, Universities,'and Hospitals j o consee for decommissioning costs guarutw. based on a financial test may be used if (3) A ratio of cash flow divided by total L Introduction liabilities greater than 0.15 and a ratio of total An applicant or licensee may vide t in appendix C to this part. For .,. liabilities divided by net worth less than 1.5. reasonable assurance of the avalbility of the guarantee and test are as conty

s. In addition, to pass the financial test. a funds for decommissioning based on 1

commercial companies that do not issue company must met all of the following furnishing its own guaranta that funds will bonds, a guarantee of funds by the acquirements; be available for decommissioning costs and 4 applicant or licenses for (1)N company's independent certilled on a demonstration that the applicant or decommissioning costs m6y be used if public acx:ountant must have compared the licensee passes the financial test of Section r the guarintee and test are as contained data used by the company in the financial u of this appendix. The terms of the self. In appendix D tc6 this part. For nonprofit test, which is required to be derived from the guarantw are in Section m of this appendix. independently audited year end financial - This appendix establishes criteria for passing I enWes, su& as coHeges, universities' statement based on United States generally ' ' the financial:est for the self hgua aruntee and I f . and nonprofit hospitals, a gu'arantee of accepted accounting practices for the latest establishes the terms for a re I funds by the applicant or licensee may., fiscal year, with the amounts in such IL Financial Test { l be used if the guarantee and test are as Snancial statement. In connection with that contained in appendix E to this part. A pmcodure, the licensa shall inform NRC A. For colleges and universities, to pass the 8"ancial test a college or universit meet either the criteria in Paragra gmust . guarantee by the applicant orlicensee, within 90 days of any matters that may cause U.A.(1) may not be used in combination with . b suditor to believe that the data specified any other financial methods used to . In the financial test should be adjusted and or the criteria in Paragraph ILA.(2 of this ~ or in any situation where the applicant ' j2) satisfy the recluirements of this section Pan For applicants'or licensees that issue hi d n est. company must repeat passay of the test ' bonds, a current rating for its most recent orlicensee has a parent company ' within 90 days aftw b close of each un45und, unmilateralized, and unencumbered bond issuance of AAA,,AA. holding ms}ority control of the voting succeeding fiscal year. c*ock of the company. Any surety (3}lf the licensee no longw meets b or A as issued by Standard and Poors (S&P) , method or insurance used to provide. requirements of paragraph ILA of this or Ass. Aa, or A as issued by Moodys, financial assurana for h licensee must send notice to (2) For applicants or licensees that do not t esta altema e decommissioning must contain the ,'f ts e l in t alted p c,, foHowing conditions: r=="t=*== The notice must be sent h. States of at least $50 million, or at least so cidSed man, return receipt requeM. times the total current decommissioning cost

4. New A ndices D and E to Part 30 within 90 days after the end of the fiscal year. "timam (= the arrent aunt requimd if I which me year end financial data show c* ratification is used). whichever is greater.

8Je added to road as follows: , g"g g gica,, no gony,,, for au dernmmissioning activities for which ""8= D to Part 36-Criteria

• ?

financial test requirements. h licensee the college or university is responsible as a . Mating To Use ofFinancialTests and must provide alternative financial assurance self-guamateelpicensa. R Self. Guarantee for Providing within 120 days afkr the smd of such 8 scal , j"ta t b $*er de p a1 Reeeeeable Assurance of Funds for 7"* Paragraph 11.B.(1) or the aitwis in Paragraph De-lamicaing by (ha=mercial DL Company Self-Cuaranta . U.B.(2)of this appendix: l Cosepaales'Ihat Have no Outstandlag h twas of a self-suaranta which an (1) For applicants or licensees that inue applicant or licensee Turnishes must provide bonds, a curmat rating for its most recent Rtled Bends ,j-.y that: uninsured.uncollateralized, and i i l L Introduction y, r.,

• A.The guarantee shall remain in form

' An app!! cant or licensee may provide unless the licenses sends notice of unencumbered bond issuance of AAA, AA, or A as issued by Standard and Poors (S&P) reasonable assurance of the availability of cancellation by certified mail. return rocsipt or Asa, Aa, or A as issued by Moodys. l funds for decommissioning based on requested, to the NRC Cancellation may not (2) For applicants or licensees that do not furniabing its own guarantee that funds will occur until en altemative Anancial assurance issue bonds, all the fo!!owing tests must be. be evallable for darammisaloning costs and mechanism is in place. met: on a demonstration that the company passes B. N licenses shall provide ahernative - (a) (Total Revenues less total expenditures) Ananrimi assurance as specified in the , divided by total revenues must be equal to 'c the financial test of Section H of this l appendix.The terms of the self-guarantee are regulations within 90 days following receipt or greater than 0.04. -in Section til r,f this appendix. This appendix by the NRC of a notice of cancellation of the (b)long term debt divided by net fixed assets must be less than or equal to 0.67. establishes criteria for passing the financial., guarantee. 1 (c)(Current assets and depreciation fund) test for the self. guarantee and establishes the'. C h guarantee and financial test, m provisions must remain in effect until the ' divided by cunent liabuities must be greator terms for a self-guarantee. Conunimin has unnbated ee hanse w &an a equal 6 2.55. H. FinancialTest. N

• 5 until another Saancial assurance meths (d) Opwating revenues must be at least 100 d

A. To pass the Ananetal test a company - acceptable to the Commission 1.a ~osen put times the total current decommissioning cost must meet the following criteria: in effect by the licensee. estimate (or the current amount required if (1) Tangible not worth greater than 310 D. N applicant or licensee must pmvide certification is used) for all dxommissioning million. or at least to times the total cunent - to the Commission a written guarantee (a activities for which the hospital is decommissioning cost estimate (or the written commitment by a corporate officer) responsible as a self-guaranteeing license. current amount requimd if certification is which states that the licensee will fund and C. In addition, to pass the financial test, a used), whichever is greater, for all carry out the required decommission licensee must meet all the following 1 darammissioning activities for which the activities or, upon issuanca of an order the requirements: j l ~ ~ ( l = e l

P, + f,

• [,

Fedm.1 Regist:r/Vol. 63, No.104 / Monday, June 1,1998/ Rules and Regulation 5 29543 S'W ^E (1) The licensee's independent certified PART 40-DOMESTIC LICENSING OF or in any situation where the applicant

ost Public sa.ountant must have compared the.-

SOURCE MATERIAL or licenseehas a parent company ,p data used by the licensee in the financial test, [ which is required to be derived from the 5 The authority citation for Part 40 holding majonty control of the voting l independently audited year end financial continues to read as follows: stock of the company. Any surety method or insurance used to provide d statements, based on United States generally Authority: Secs. 62,63,64,65,81,161, financial assurance for accepted accounting practices, for the latest 182,183,186,68 Stat. 932,933,935,948 ' p fisca! year, with the amounts in such 953,954,955, as amende.1, secs.11e(2),8'3' decommissioning mu.st contain the financial statement. In connection with that 84, Pub. L 95-604,92 Stat. 3033, as following conditions'- i procedure, the licensee shall inform NRC amended. 3039, sec. 234,83 Stat. 444, as ~-y**, within 90 days of any matters coming to the' amended (42 U.SC 2014(e)(2),2092,2093. attention of the auditor that cause the auditor 2094,2095.2111,2113,2114,2201,2232. PART 50-DOMESTIC 1lCENSING OF to believe that the data specified in the 2233, 2236,2282); sec. 274, Pub. L _86-373, PRODUCTION AND UTILIZATION / F,. financial test should be adjusted and that the 73 Stat. 688 (42 U.SE 2021); secs. 201, as FACILITIES amended. 202,206,88 Stat.1242, as 11 hcusee no longer passes the test. amended, 1244,1246 (42 U.Sc 5841,5842.. 7, The authority citation for Pa t 50 j (2) After the initial financial test, the 5846); sec. 275,92 Stat. 3021, as amended by continues to read as follows: licensee must repeat passage of the test Pub. L 97-415,96 Stat. 2067 (42 U.SC Au

y. ecs.102, W, W.105,161, within 90 days after the close of each 2022).

i 8. a. 9 6. W,938. succeeding fiscal year. Section 40.7 also issued under Pub. L 95-(3)lf the licensee no longer meets the 601, sec.10,92 Stat. 2951 (42 U.SC 5851). 948,953,954,955,956, as amended, sec. x.- b' ' 4 ng requirements of Section I of this appendix, Section 40.31(g) also issued under sec.122, the licensee must send notice to the NRC of 68 Stat. 939 (42 U.Sc 2152). Section 40.46 3323423 2201,2232 2 2236,2239,2282); secs. 201, as amended lts intent to establish alternative financial so s' der sec. dd U n 23 n 0 7'1 Iso 202,206,88 Stat.1242, as amended 1244, v assurance as specified in NRC regulations. he The notice must be sent by certified mail, issued under sec.187,68 Stat. 955 (42 U.SC' 1246 (42 U.Sc 5841,5842,5846). 2237)* Secdon 50.7 alsoissued under Pub. L 95-return receipt requested, within 90 days after 601, sec.10,92 Stat. 2951 (42 U.SC 5851). ), the end of the fiscal year for which the year

6. In S 40.36, the iritroductory text of. Section 50.10 also issued under secs.101, end financial data show that the licensee no paragraph (e)(2) is revised to read as 185,68 Stat. 936,955, as amended (42 U.S C.

longer meets the financial test requirements. Iollows: 2131,2235); sec.102, Pub. L 91-190,83 Stat. The licensee must provide alternate Snancial 853 (42 U.Sc 4332). Sections 50.13, assurance within 120 days after the end of 9 40.38 Financialmoeurance end 50.54(dd), and 50.103 also issued under sec. I h such fical year. recorteeping for decommiseloning. 108,68 Stat. 939, as amended (42 U.SC l M 2138). Sections 50.23,50.35,50.55, and 50.56 III. SelfCuarantee (e) * *

• also issued under sec 185,68 Stat. 955 (42 The terms of a self. guarantee which an (2) A surety method, insurance, or U.Sc 2235). Sections 50.33a,50.55a and applicant or licensee furnishes must provide other guarantee method. These methods Appendix Q also issued under sec.102, Pub.

e that - guarantee that decommissioning costs L 91-190,83 Stat. 853 (42 U.SC 4332). A. The guarantee shall remain in force - will be paid. A surety method as be Secti ns 50.34 and 50.54 also issued under m unless the limnsee sends notice of th I 8

• b d I'"'

I sec. 204,88 Stat.1245 (42 U.Sc 58441 t cancellation by certified mail, and/or return lin*

• ^ E"#'#

S ctions 50.58,50.91, and 50.92 also issued receipt requested, to the Comml=< ion. Cance!!ation may not occur unless an.. C mPany guarantee of funds for.. -. under Pub. L 97 415,98 Stat. 2073 (42 U.Sc 2239). Section 50.78 also issued under decommisaloning costs based onn . sec.122,68 Stat. 939 (42 U.SC 21521. financial test may,be used if the Sectens 50.80-50.81 also issued under sec. Pn ,3 guarantee and test are as contained in 184,58 Stat. 954, as amended (42 U.Sc an uEc's edin the 8PPendix A to part 30. A parent 2234). Appendix F also issued under sec. f1 i pc 18 68 t O Commission's regulations within 90 days com y guarantee may not be used in 9,5 city text of 5te t following receipt by the Commission of a com ination with other hanr91 c notice of cancellation of the guarantee. methods to satisfy the requirements of {' graph (e)(2)(111) is sevised to read as C.The guarantee and financial test this section. For commercial. provisions must remain in effect until the corporations that issue bonds', a $ 50.75 Repor9ng and w-_- Commission has terminated the license or guarantee of funds by the applicant or i_ -. c.,, pionning. 'O_.6for. until another financial assurance method. licensee for decommissioning cmsts.

• . ~

acceptable to the Commission has been put based on a financial test may be used if _ (e) * *

• in effect by the licenvee.

the guarantee and test are as contained (2) *

• C~ ~

D. The applica:nt or licensee must provide

a appendix C to pan 30.For.

(iii) A surety method, insurance, or to the Commission a written guarantee (a commercial companies that do not issue other guarantee method. These methods written commitment by a corporate offiar or bonds, a guarantee of funds by the guarantee that decommissioning costs. ottimt of the institution) which states that applicant or licensee for will be paid. A surety method may be '. ~ the limnsee will fund and carry out the decommissioning cx>sts may be used if' in the form of a surety bond, letter of required decommissioning activities or, upon ~ the guarantee and test are as contained credit. or line of credit. A parent Issuance of an order by the Comml== ion, the licensee will set up and fund a trust in the in appendix D to part 30. For nonprofit company guarantee of funds for EU M 11 nWA d e lM p m W na at cat esumates fu $"", at any time, the licensee's most remnt and nonprofit hospit a guarantee of-financial test may be usulif the. E. If funds by the applicant or licensee may guarantee and test are as contained in bond issuance ceases to be rated in any be used if the guarantee and test are as appendix A to part 30. A parent, category of "A" or above by either Standard contained in appendix E to part 30. A company guarantee may not be used in and Poors or Moodys, the licensee shall, guarantee by the applicant orlicansee co,mbination with other financial provide notice in writing of such fact to the may not be used in combination with ' methods to satisfy th9 requirements of Commission within 20 days after publication any other financial methods used to this section. For commercial of the chan8e by the rating service, satisfy the requirements of this section corporations that issue bonds, a

J ) % t 29544 Federal Register /Vol. 63, No.104 /Mdaday, Juna 1.1998/Rults and Regulations (-z guarantee of funds by the applicant or appendix A to part 30. A' parent Subpart J also issued under secs. 2(2), 2(15), I licensee for decommissioning costs company guarantee may not be used in 2(19),117(a),141(h), Pub. L 97-425,96 Stat. based on a financial test may be used if combination with other financial 2202,2203,2204,2222,2244 (42 U.SC I the guarantee and test are as contained' methods to satisfy the requirements cf 10101,10137(a),10161(h)). Subparts K and L l in appendix C to part 30.For this section. For commercial are also issued under sec.133,9e Stat. 2230 commercial companies that do not issue corporations that issue bonds, a (42..U.SC 10153) and sec. 218(s),96 Stat. l' 2252 (42 U.SC 10198). bonds, a guarantee of funds by the guarantee of funds by the applicant or cpplicant or licensee for ucensee for decommissioning costs

12. In S 72.30, the introducto'Y text of decommissioning costs may be used if based on a financial test may be used if Paragraph (c)(2) la revised to read as

) the guarantee an test are as contained the guarantee and test are as contained follows: in appendix D to part 30. For nonprofit in appendix C to part 30. For entities, such as colleges, universities, commercial companies that do not issus $ 72.30 Financial ensurance and and non rofit hospitals, a guarantee of bonds, a guarantee of funds by the recordkeeping for decommiseloning. 1 funds the applicant or licensee may applicant,or licensee for be u if the guarantee and test are as decommissioning costs may be used if contained in appendix E to part 30. A the guarantee and test are as contained (c) * *

• guarantee by the applicant or licensee in appendix D to part 30. For nonprofit (2) A surety method, insurance, or may not be used in combination with entities, such as colleges, universities, other guarantee method. %ese methods any other financial methods used to and nonprofit hospitals, a guarantee of guarantee that decommissioning costs -

antisfy the requirements of this section funds by the applicant or licensee maY will be paid. A surety method may be orin any situation where the applicant be used if the guarantee and test are as in the form of a surety bond, letter of orlicensee has a parent company contained in appendix E to part 30. A credit, or line of credit. A parent hilding majority control of the voting guarantee by the applicant or licensee company guarantee of funds for stock of the company, may not be used in combination with decommissioning costs based on a any other financial methods used to financial test may be used if the e = =- satisfy the requirements of this section guarantee and test are as contained in PART 70-DOMESTIC LICENSING OF or in any situation where the applicant 8PPendix A to part 30. A parent SPECIAL NUCLEAR MATERIAL orlicensee has a parent com y em f ting co {nati n 5 9.The authority citation for Part 70 ings t ott er fin a continuse to road as follows: method or insurance use[to provide methods to satisfy the requirements of this section. For commercial Authority: Secs. 51,53,161,182,183,68 financial assurance for Stat. 929,930,948,953,954, as amended, decommissioning must contain the corporations that issue bonds, a j Q234,83 S at 4 s, following conditions: guarantee of funds by the applicant or n ,2g 2 2 licensee for decommissioning costs j 201, as amended. 202,204,206, 88 Stat-based on a financial test may be used if 1 1242 as amended.1244,1245.1246 (42 U.SC 5841,5842,5845,5s481 PART 72-LICENSING the guarantee and test are as contained Sections 70.1(c) and 70.20n(b) also issued REQUIREMENTS FOR THE in appendix C ta part 30. For under emes.135,141, Pub. L 97-425,96 Stat. INDEPENDENT 8TORAGE OF SPENT commercial corporations that do not 2232,2241 (42 U.Sc 10155,10181). Section

• NUCLEAR FUEL AND HIGH-LEVEL issue bonds, a guarantee of funds by the APP cant or licensee for li 70.7 also issued under Pub. L 95-601, sec.

RADIOACTWE WASTE 10,92 Stat. 2951 (42 U.SC 5851). Section decommissioning costs may be used if { 70.21(g) also issued under sec.122,68 Stat. 11.De authority citation for Part 72 the guarantee and test are as contained l 939 (42 U.SC 2152). Section 70.31 also continues to read as follows: in appendix D to part 30. A guarantee lasued under sec. 57d. Pub. L 93-377,88 Authority: Sect 51.53,57,62,63.65,69, by the applicant or licensee may not be Stat. 475 (42 U.Sc 2077). Sections 70.36 and 81,181,182,183,184.1&&,187,189. 68 Stat. ug g comgn on w any er 70.44 also issued under sec.184,68 Stat. 954, 929,930,932,933,934,635,948,953,954, as amended (42 U.SC 3234). Section 70,81 financial methods used to satisfy the also issued under secs.186,187,68 Stat. 955 ' 955, as amended, sec. 234,83 Stat. 444, as amended (42 U.SC 2071,2073,2077,2092, requirements of this section or in any (42 U.SC 2238,2237). Section 70.82 also issued under sec.108,68 Stat. 939, as 2003,2095,2099,2111,2201,2232,2233. situation where the applicant or 2334, 2236,2237,2238,2282); sec. 274, Pub. licensee has a parent company holding amendsd (42 U.SC 2138).

10. In S 70.25, tho' introductory text of kS 201asEn majority control of the voting stock of 2021 d2

,206, the company, Any sursty method or paragraph (f)(2) is revised to road as 88 Stat 1242, as amended.1244,1246 (42 insurance used to provide financial U.SC 5641,5842,5846); Pub. L 95-601, sec. f;llows: ,,m. ~ 10,92 Stat 2951(42 U.SC sa51); sec.102, assurance for decommissioning must f Pub. L 91-190,83 Stat. 853 (42 U.SC 4332); contain the following conditions: } I_ 25, M securence and,; _ ,. for = - - y-Secs.131,132,133,135,137,141 Pub. L

j- - *jf)l./

34=stg=g,',;g,3g=g,=>;,y, day of May,1998. osted a, nocme.ua,yiand.,su md U.SC 10151,10152 10153,10155,10157, (2) A surety method, insurance, or 1 Other guarantee method. These methods - 10161,10168). For the Nuclear Regulatory Commission. guarantee that decommissioning costs Section 72.44(g) also issued under secs. obaC Hoyle, 142(b) and 148(c). (d). Pub. L 100-203,101 Secretary of ge commission. j willbe paid. A surety method may be Stat.1330-232.1330-238 (42 U.SC is the forrn of a surety bond letter of. 10182(b) 10168(c), (d)). Section 72.46 also (FR Doc. 98-14385 Filed 5-29-98; 8:45 aml I credit, or line of credit. A arent issued under sec.189,68 Stat. 955 (42 U.SC asusso caos rose eue ~ P ccmpany guarantee of funds for 2239); sec.134. Pub. L 97-425,96 Stat 2230 decommissioning costs based on a ', (42 U.SC 10154). Section 72.96(d) also financial test may be used if the ' issued under sec.145(g). Pub. L 100-203, guarantee and test are as contained in ' 101 Stat.1330-235 (42 U.Sc 10165(g)). -}}