ML20236S939
| 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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July 22,1998 1 - 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
/
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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
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- WASHINGTON. D.C. 205two001 l 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, a S' 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 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 -----.-.---___________a
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 687'2 6)c change, as published in the Federal as corrected on Janu 12,1994 (59 FR " (301)415-6203, e-mail cwpearc. gov. 1618), the NRC publ ed a notice of Register (63 FR 11585: March 10,1998) SUPPLEMENTARY INFORMATION: , , g will tend to effectuate the declared ~ final rulemaking that allows financially 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 8 bond ratings the option of using self-List ofSubjects in 7 CFR Part'989 involve the use of substantial amounts . guarantee as a mechanism for . $ of nuclear materials, and those sub}ect , complying with the regulations on ~ Grapes Marketing agreements,
=
Raisins, Reporting and recordkeeping ~ to to CFR Part 50 who are a plicants - financial assurance for 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. . .
Accordingly, the interim fmal rule bond or letter of credit, re ayment, u The NRC's decision to add self. insurance, an extemal afnkfng fund . guarantee to the, list of approved . amending 7 CFR part 989 which was coupled with a surety or insuranced . published at 63 FR 11585 on March 10, financial assurance mechanisms for g 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, change. . a petition for rulemaking filed by 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 .. for allowing self-guarantee as a cost-IFR Doc. 98-14422 Filed 5-29-98; 8:45 sml licensees that are governmental entitias saving option for corporate licensees . (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 ISSION MLAM .
,yfg3,beonn 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 I eo noe arding issued by the licensee as one measure of { tired I
~
Funding by Nonprofit and Non-Bond- IIC* *" ' , g gt f dd funds when needed The study.
"8 '
of e If - " Analysis' of Potential Self4uarantee he NRCis ext ding e 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 Commission is amending its regulations extension can be made without "E
- self t this Bonds," NN514 Mune 1997),
identified a variety of financial criteria 12 allow additional materials licensees that cxiuld be applied to additional and non-electric utility reactor licensees jeopardizing the present high level of , ca 3 financial assurance thatthe who meet attain financial critwis to decommissioning obligation requires. of)se Fguarantee. na Enancial criteriarios o self guarantee funding for la this rule were selected by the NRC . decommissioning. Certain commercial Allowing qualified nonprofit and non-t corporate licensees who issue bonds am bond-issuing licensees to self-guarantee . based on infonnauon in this mp 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 I[ crit r a its rufe low no profit
, such as colleges, universities,
([ '" I"8g",* A(ri 0,1997,
..r' p, an ospitals, as well as some - e p.,s i notics,16 comments were received: 2' t to tocrR sa.rs(exs),an el cote '
commercial licensees who do not issue . from States,6 from coll'8** and bonds, to self-guarantee funding . utmer can with twielre==nu muery the + -na an esternal sentas otaking fund,fundans
- ~ . unimsides,3 fm n associadons,3 im"m 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 ersea, September te, ster). As of this Royal Road. Sprinsheld. VA 22141. Copies are when needed. 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 Clark Prichard, Office of Nuclear Mail Siop ti e. washinston. Dc ross s-oool; and non-power reactar n-a -, telephone (202) ss+-stra: six tro21 sa4-3343.
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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
- as written, most favored some type of ' commenter, NRC does not believe that percent, but for the 20 years ended June 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.
o l Criten.o for Colleges oind Although a real rate of retum of 3 Council of College and University 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. conservative. NRC's basis for the 30 ired amount.NRC has reviewed the perantage o a 31ar movi,ng evnage of multiple is that an amount of money 30 17ormation provided in Ibbotson ' ,, times decommissioning costs invested 199 , dowmen pen 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, Response: NRC's objective in selecting government bonds , these spending uta am not compante with 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 investments were less than 3 percent. In NRC continues to believe that a ' p[roposed
" the multiplerule, of 30 at has 62been FR chosen 32296, thata 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. decommissioning out of endowments; published in 1995 also emphasized a Comment: A commenter objected to I (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 . I reallocate up to 3 percent of their high rates of retum cannot be sicpected requirement should be compliance with f spending from endowments in a one. . to continue indefinitely "At a time eitner the 350 million figure orthe 30 7 l year period. Rather, the criterion was when many public and private q 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 bridge the gap between revenues and. Response: As previously stated. NRC institution, indicating that NRC can. expenditures,it is tempting to chose conservative financial criteria for f. { t
. a
i [ Federal Register /Vol. 63, No.104/ Monday, June 1,1998/Rulis and Regulations 29537
- a. non-bond-issuing colle8es and ~ '
( universities, aimed at assuring the up front even though deconunissioning ~ ' decommissioning costs) was excess activities are not completed within a . financial viability of a licensee qualified single year. For this reason NRC's . conservative. It appears to reflect an k expectation that the decommissioning to self-guarantee. This is the only requirement that would apply to non- criteria for determinich whether & '. will take a short time whereas a realistic licensee should be allowed to self ' - time frame should be 2 years or more. bond-1ssuing colleges and universities,, whereas non-bond issuing hospitals or guarantee the costs of decommissioning NRC should consider a multiple of 30 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 hospital operating revenues be at least - inning of . rnessures of financial vi ill deconunissioning activities. ne ' 100 times decommissioning costs is a - overall financial strength an[t (2) :(t) th financial strength relative to sire of licensee would fund a standby trust 1,f either (1) the licensee no longer . . te Ine h r ce as decommissioning obligation.The ' ' qualifies to use the self-guarantee to .
~
overall financial strength of an sufficient financial strength to self, , 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. requhed to conduct decommissioning. . be the need to fully fund a trust fund in Specific ability to fund decommissioning expenses Is measured or (2) a limnsee using's self-guarantee > - a short period of time if the licensee by the ratio of unrestricted endowment is required to carry out ceases to be capable of passing the self-decommissioning. NRC currently does guarantee test or if decommissioning to decommissioning 8 costs. A M"""" test based only on ratio to not allow licensees to consider the must be carried out. As discussed above, decommissioning cost might allow an impact of earnings during the " payout" the operating revenues multiple institution without adequate financial period (the period during which funds criterion does not reflect any are being expended from the finandal expectation conmming the length of strength to pass ifits decommissioning 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 NRC disagrees with the commenter's Cornment:A commenter found the decommiss!oning msts. Both threshold suggestion that the expected duration of rationale that requires hospitals to meet requirements are needed to pmvide all four financial ratios tests unclear. decommissioning activities should assurance that an institution can meet apply to the detennination of the ' This commenter believed that using decommissioning obilgations when - only the operating revenues / necessary. appropriate multiple. decomminioning costs ratio would
- Comment: A commenter stated that that Comment:
(based onAthe commenter conabination recommends' of , ' appear to provide reasonable assurana NRC's rationale for e multiple of 30 of ability'to provide decommissioning implies that decommissioning costs are investment yield of 6 perant and . 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 decommissioning activities wherd - le conse - selected to provide a level of financial
""[esponse:rvausm."For the reasons stated in financial assurance arrangements ar* assurance risk similar to the fmancial -
responses to thp preceding comments, . assurance risk in the existing self . involved will require considerable NRC does not acce - coordination witn regulator and . guarantee. The four stion in . recommendation.,pt .o this combination represent the rmancial test financial services involving 2 or 3 years , . to complete. This consideration also that best achieves this goal. A financial
- 2. FinancialCriterloforHospitals implies that the appropriate multiple test using just one of these ratios would should be 15 rather than 30. .
The financial test criteria propose.d for not repmsent the same level of risk and Response:NRC recognizes that hospitals was an A or better bond rating would not provide an adequate level of. commissioning may ocx:ur over a or, for hospitals not having a bond financial assurance. Using only the ratio per:od longer than one year. The rating. a financial ratios test consisting of operating revenues to mu tiple of 30 was chosen without of(a) theLiquidity-following:(current assets anddecommissioning costs would . rer ud to how many years it would take completely ignore such determinants of to decommission a facility. The depreciation fund, divided by cunent 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. commercial licensees includes several-ap$owing this line of reasoning. . fol revenues) greater than or equal to 0.04.
... (c). _ Leverage 41ong term debt divided rados, n t Nst one. The non tad stretching out the time length of by net fixed assets) less than or equal t d decommissioning wouldimplyever 0.67. .
ersities d ss sin 8I ratio, but (d) Operating Revenues at least 100 -it is the ratio of unrestricted endowment decreasinhmulti NRC's c ectiv is to ensure les.that times decommissioning costs. to decommissioning costs. Unrestricted i decommissioning will take place on a There were no comments regarding' I l ' timely basis. The financial assurance endowment is a fund readily available regulations are intended to assure that the bond rating criterion but there were to meet decommissioning expenses.- several comments on the non-bond Hospital operating revenues are inadequate funding does not prevent criteria. timely decommissioning. Timely different because these funds may not Comment: A commenter believed that s be readily available to meet ) decommissioning may aquire that all the selected multiple of100 (hospital
~
decommissioning funding be available decommisslor.ing expenses due to other 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 f.
~
universities, aimed at assuring the up front even though decommissioning ' ~ decommissioning costs) was excessiv activities are not completed within a : . conservative. It appears to reflect an
,I financialviabilityof alicensee ualified single year. For this reason NRC's .
to self-guarantee. This is the o criteria for determining whether a 1 _ expectation that the decommissioning
- requirement that would apply to non- will take a short time whereas a realistic 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 to multiple financial ratios as finant lal licensee will be required to fully fund . decommissioningin,the Respoisse:ne requirement that tests. It is designed to ce ture two immediately prior to th hospital operating revenues be at least - innisg of -
- 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 dete a h either (1) the licensos nolonger . . decommissioning obli ation.%e ' ' qualifies to use the self-guarantee to .. overall financial stre ofan sufficient financial strength to self, - , Institution is heavily rovide financial assurance for Suarant** H"*Ver.
- Potential 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 a short pedod of tirne if the licensee decommissioning expenses is measured or (2) a licensee using's self-guarantee 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="" test based only ou ratio to not allow licensees to consider -
"'ust be carried out. As discussed above, decommissioning cost might allow an impact ofearnin during the
- ut" the operstmg revenues multiple institution without adequate financial period (b peri during w funds criterion does not reflect any m being expended from b Enanedal expectation concerning the length of strength to pass ifits decommissioning assurance standby trustic time durin for costs werelow. A test based only on the decommission in cal ting b : will ocx:ur,g which NRC herefore, decommissioning does not size of the unrestricted endownwat amount of fun might be inadequate for those t must be set aside accept this recommendation.
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.- decommissioning activities should - assurance that an institution can meet apply to the determination of the ~ . ,- His commenter believed that using decommissioning obligations when . only the opereting revenues / ~ necessary. a ropriate multiple. ' mment: A commenter reenmmands. decommissioning costs ratio would Comment: A commenter stated that ap to provide reasonable assurance NRC's rationale for a multiple of 30 that [ based on the combination of ' ' 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 . - year riod. However,it is more rather than 1 arlthemultip ation Response:The linanciai ration test for reali c to assume that any - factor (be) imm 30 to to with . hospitals la the rule was carefully decommissioning activities wherv - le conu *
. selected to prende a level of financial
'"/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. financial services involving 2 or 3 years recommendation...a - , , , combination represent the financial test that best achieves this goal. A financial to complete. This consideration also 2.FinancialCriteriaforHospitals implies that the appropriate multiple . test using just one of these ratios would should be 15 rather than 30. . ne financial test criteria proposed for not to resent the same level of risk and Respoase:NRC recognizes that hospitals was an A or better bond rating woul not provide an adequate levelnf-decommissioning may occur over a or, for hospitals not having a bond financial assurance. Using only the ratio period lon r than one year. De rating. a financial ratios test consisting ' of operating revenues to of the following. multi le o 30 was chosen without (a) Liquidit -(current assets and - decommissioning costs would . reg completely ignore such determinants of to how to decommission a man ears it would take de rociation d, divided by current -
, ty. H e financial strength as liquidity, commenter is attempting to rrake this 11 lities) greater than or equal to 2.55.
(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
- a repriate multiple. However. commercial licensees includes severalm f owing this line of reaso revenues) greater than or equal to 0.04.
./.-.- (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 to decommissioning costs. Unrestricted
! decommissioning will take place on a - times decommissioning costs. There were no comments regarding' , timely basis. The financial assurance endowment is e fund readily available 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. timely decommissioning. Time different because these funds may not Commerit: A commenter believed that s be readily available to meet decommissioning may require at all the. selected multiple of 100 thospital decommissioning funding be available decommission.ing expenses due to other operating revenues at least 100 times hospital costs. b uf l _ ,
' V 2'9538 Federal Raglaser/Vol. 63, No.104/ Monday, June 1,1998/Ru'hs and Regulations accounting prindples to assess
.3. Prohibition on Using a Guamntee in rating, despite declines in the finandal
. crampliance with a financial test Combination With AnotherFinancial . . condition of the with The problem issuercan insured bond designed using U.S. GAAP. Finally, the Assurance Mechanism 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 which NRC can identify when a financial assurance mechanisms in art that p'rovisions 40.36is)(2), in 10 CFR 50.75(e)(2)(iii), 30.35(f)(2)'),
70.25(f)(2 to ensure that licensees that are una le licensee / issuer no longer qualifies to 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 , methods to satisfy finandal assurance Furthermore, e insurance coverage provided by the bond insurer, which is accounting practices in order to make 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-metrictions. ' C#""*"I ##"3"8 Response:This rule makes no change provideissue's bond any ad pabsat onal schedule, source of will #"I not in the already existing prohibition lunding for decommissioning. NRC does The financial test proposed for non-against combining a parent or self- not agree with the commenter's commerciallicensees was:
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.
- 5. Requirements for Financial (c) Net worth greater than 310 million this rule. The NRC has limited or at least to times decommissioning Statemente 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 finandal assurance program in the Appendices D and E to 10 CFR Part 30 the not worth criterion of not worth 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
' 4. Insured Bend Eiungs Prindples (GAAP). This does not sma'ller firms that could easily self-
.* recognize the increasingly multi.
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-be used; an " insured" bond rating se on of accounting practices to be issuina commerciallicensees was to would not be eligible. *sbe justification used is a significant corporate dodsfon make t'ho financial amurance risk of affected by many factors. It is these criteria equal to the financial for thislimitation is not warranted ' 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 issuers andcondition of policies avoid issuing the prospective to ' be changed for a licensee to be to be allowed approximately 0.13 percent per to provide self-guarantee of year). According to the analysis of
, universities that are not creditworthy.
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 adequate assurance that funds will be criteria in the proposed rule meet this sound financial condition. 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
- Response:Financialstatements firms.nus, the 310 million not worth bonds at the time the debt is insured.
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 assign such bonds a triple-A rating GAAP pose two problems from the retained this requirement in the final l 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 that were prepared in accordance with estimates of decommissioning costs, condition of the bondissuer after the * . based on historic plant experience in debt has been insured.The rule foreign accounting practices. Second. decommissioning and renovation, rather includes a requirement that the licensee allowing firms to rely on financial than commercial estimates by must ascertain whether it continues to statements prepared according to contractors that tend to be too high. pass the financial test for self-guarantee accounting principles in use in thel.r every year. Furthermore,if the licensee own country could place a heavy .
Analrsk of Poe.nual s.tr<;uarante. T t. sor '4 n3 longer meets the test criteria, it must administrative burden on NRC. The Danonstraunsnnancial Assuranc.Wonprent 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 .
~
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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 .
decommissioning begins would be a excess of $t00.000 per year for letters of 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 ' 1 with Agmement States. This will USEC was created pursuant to the passage of the financial test for self- Energy Policy Act of 1992. It is a wholly resure consistent requirements for . guaranteo every year. University financial surety arrangements and will owned government corporation, whose endowments are very stable. In . powers are vested in a five-member ~ preclude the unintended creation of addition, Section EC.(3) provides competitive disadvantages between Board of Directors appointed by the 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 Agreement States. confirmed by the Senate. However, on 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' allowed an Agreement State to assurance of decommissioning funrdng, " reliable and economical domestic l promulgate equivalent, or more the annual "requalification" provision . source of enrichment services" exist + stringent, financial assurance is necessary. NRC must have assurance regulations than those of NRC. following privatization.
- 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 other t guarantee financial tests spplicable to e NRC believes that delalled analyses . (b), and (d) of Parts 30.35,40.36 and . ~ ~ s oflicensees, both profit 'and . should be undertaken to ensure that all nonpro ,.
. ., n . critical factors have been considered.
70.25, which require that licerisees must . ' l 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 3 it might incur is substantially different ,, be provided for through a financial Comment:The United States ' , from those of the licensees included in assurance mechanism, have particular Enrichment Corporation (USEC) m .c s the current rulemaking. In particular, heahh and safety significance and were the scope and type of activities that designated as category H&S. Underlanguage the . proposed of the rulethat the NRC to include - , modifyUSEC the 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 l
.' b' asis. Therefore, Category D has been' conducted b hospitals and universities, which can be used by kualified and the non ond lasuing firms covered nonprofitlicenseesan non-bond. assigned to these rule provisions.
issuing licensees. Findin ofNoSignificant byni thed,rohsed rule. exact size of the obligations. t Appendix D is added to 10 CFR Part En h d Imp AnHability '. l that USEC might be utred to cover is 30 to establish requirements for self-guarantee by non-bond-issuing The amendments will allow qualified uncertain and will n determined commentiallicensees. Appendix E is nonprofit and non-bond-issuing j until a later date, although it is known licensees the option of using self- I that many of the costs will remain the responsibility of the U.S. Department requirementsof. added to 10 for self-guarantee for CFRguarantee Part 30asto establish a mechanism assurance for decommissioning. For-for financial Energy (DOE). Under 10 CFR 76.35(n), ' nonprofit college, university, and - i hospitallicensees. . { fitdscorporate i DOE is respot.sible for those aspects of ' are alreadylicensees allowed to use thatself. issue
- decontamination and decommissioning .. ,
i of the gaseous diffusion lants(GDPs) 20 Nart M . . guarantee if they meet the regulatory
' Section 40.36 is amended to permit criteria. Other licensees currently may assigned to DOE under t e Atomic elect to uso a variety of financial Energy Act. DOE also is responsible for - self-guarantee for financial assurance assuran<:e mechanisms, such as surety' dl environmental liabilities associated which can be used by qualified nonprofit licensees and non-bond.
bonds, letters of credit, and escrow
' with the operation of the GDPs before accounts to comply with July 1,1993. According to USECs issuing licensees. _p Annual Report for 1996,"[eixcept for 20 CFR Part 50 ,- acti i ende$ e r$ prof t and
- non-bond issuing nuclear materials ed a o u of d Section 50.75 is amended to permit
~m self-guarantee for financial assurance hcensees and non-electric utilit reactor ment entered into prior to e . licensees greater flexibility by a lowing tizatirin, all environmental which can be used by qualified babilities of the Camp y through the non refit licensees and non-bond. an additional mechanism for licensees
. iss , g Econsees. ' ,,, , , .
that rneet the Snancial cdteria for use of date of privatization w I remain ,, N,$ to the NRCs obligations of the U.S. Covernment." ' 10 CFR Part 70. , .' f 1.t . lations
'es al
- Section 70.25 is amended to permit simply adds one more financ a yg tt s)* *-
self 8"arantee for financial amurance assurance mechanism to the . as of June 30,1996 USEC had accrued ' - ' mechanisms currently' available. It does liability of $303 million for which ce be used bynon-bond rofitIIcensees'an hudified not affect the cost of decommissioning transportation, conversion, and- , , g,,, non[ng licensees. + materials and non-power reactor 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 a
disposition of depleted uranium, and - which can be used by qualified non- activities considered in the final rule - 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 u environment not previously considered 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 compatibility Category criteria,is D. Category also designated D qualityas a human environment, and ' of the 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 sprinsneld.vA :tet. copies are evaliable for 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 IWashington, Soction 30.35 is amended to permit - ' duplications in the regulation of wi, fin,$n*,N373 %,To fl$'3 self-guarantee for financial assurance agmement material on a nationwide- sam (analsu-ases. ,
_ s e e 5
1, - - - . . . Fedhrd Regist:r/Vol.'63,'No.104/ Monday,' Juns 1,1998/Ruiss end Regulations. 29541
].7 ~
i impact of this action.'Ibe foregoing Regulatory F1-lhauty Certi8 cation, Radiat1on protection, Reporting and constitutes the environmental i 3- . . In accordanm with the latory mcordkaping miuirements, Scient16c s assessment and finding of no signiScant Flexibility Act of1980 (5 U. .C 605(b)), og ment, Security measures, Special
?. impact fw this mle. -
a the Commission certines that this rule n material , g Paperwork Reduction Act Statement .will not have a significant economic to CTR PW ri ' * ' - d'I "
. " Itis Anal rule amends information collection requirements that are subject
"("d*",g ld P8"d M88 Power t' raining materials.Occupati
- s. Nuclear foty and i to the Pa rwork Reduction Act of 1995 number of options available to licensees hule, Repmung ud mcmdkapkg l
~
(44U.S. 3501 et seq.). '!hese Io com wie se mion uirements, Security m**8um8, SP ent g, ,g as 1:ements were approved the b ce of Managernent and enhancing the flexibility of these ,.
~
lada Rhwh W b & M For'the reason's set out in the - (OMB), approval number 3150w0017. . $1d resuh h sigidBam am avkgs Weamble and under the authority of the
-4020, =4011 -0009, and -0132. gconnes. Atondc Energy Act of 1954, as amended, ng burden for this - to q,,gg ^
ization Act of1974, ' i h public " the 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 i souscos, and 72.62 , the parts of the PART30-JtULESOFGENERAL c data neebthering an maintaining the ,Canm mgulad &a iming
, and completing and - , g APPLICAtluTY TO DORAESTIC r myiewing se infenation coHecdon apply to this rule because the rule does "
Send -==nts on any as ofthis notimpose a back8t as denned in to IIA""I" r infenaden coHecdon, CFR 50.109(a)(1) or 72.62(a). N rule" 1', The authority citation for Part 30 the t d exten s e selfptse altwnsive fu conunues k med a fouw a , ntY (T-4 F33), U.S. 888888088 8" " RImI88I"S Aashortyi secs. 81,82, tst.1s2.183, tes, Saancial asumace to quaH8ed am- se seat. ess, see, ess, m, ess, as amendmi, NucleIsr lat"Y ommission, C At and non-bend issuing H=a- emc. 234, as seat. 444, as masaded (4a U.S.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 PuhucFreesc6enNada-H== for &ls Saal rule.ysis was not prepared under sec.184,88 Stat. 954, as amende l (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 ,, g,, p,,, ,, . U.S.C 2237). a currently valid OMB control n .*
- 2. In 5 30.s, paragraph (b) is revind t'o the NRC may not conduct or sponsor, B uctinpterial, Criminal ' ' seed a foHows. . 'g' anda is not to respond , Government contracts,' .
I f
- to, information co torswornmentalrelations Isotopes.
- S#s.8 Insermanensensesen j ,t Nuclear materials, Radiation protection.. mapuisemente: cess appreunt. .
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 * ' ~ ' Ph(f)(2)is aviend to read as Safeguards, U.S. Nuclear Regulatory to CFW so ~ ' ' ' " 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 lan * ' * ~ *. ' Fairness Act powe row d =[on,ts Randor and dung readon, critwin, ,Radladen . (f) *. '* ** '
, in accordance with the Small and recordkeeping '. . c. (2) A surety method,insurana, or Business Regulatory Enforcement requirements. .
. .; other guarantee method. These methods Fairness Act of 1996, the NRC has s- .
guarantee that d =-=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 .
OfBce of Management and Budget. materials, Packaging and containers, decommissioning costs based on a l ,, e - .
4 9 s - e 29542 , Federal Regist:rA/ol. 63, No.'104/Mond2y, June 1,1998/Rults end Regulations cc n 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. estimates for decommissioning. cppendix A to this part. A parent (2) Assets located in the United States at 1 ens al company guarantee may not be used Ins """",u , , ,,,,o l eogant
, ,9 ent Appendix E to Part 30-Criteria (
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'or
- guarantwinglicensee and as parent' .; Colleges, Universities,'and Hospitals consee for decommissioning costs guarutw. j (3) A ratio of cash flow divided by total L Introduction based on a financial test may be used if ,
liabilities greater than 0.15 and a ratio of total An applicant or licensee may vide the guarantee and test are as conty reasonable assurance of the avalbility of t in appendix C to this part. For . ,. liabilities divided by net worth less than 1.5. .
- 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 '
r
.. decommissioning costs m6y be used if public acx:ountant must have compared the licensee passes the financial test of Section 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' aruntee and I f . and nonprofit hospitals, a gu'arantee of statement accepted accounting based on United practices for the latest States generally establishes the ' ' terms the financial:est for a re for the self hguar 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
. guarantee by the applicant orlicensee , within 90 days of any matters that may cause 8"ancial test a college or universit
. b suditor to believe that the data specified meet either the criteria in Paragra gmust U.A.(1)
~ may not be used in combination with or the criteria in Paragraph ILA.(2 of this any other financial methods used to . In the financial test should be adjusted and satisfy the recluirements of this section Pan For applicants'or licensees that issue or in any situation where thecompany applicant hi d n ' j2) must repeat passay of the test '
est. bonds, a current rating for its most recent orlicensee has a parent company ' within 90 days aftw b close of each un45und, unmilateralized, and holding ms}ority control of the voting unencumbered bond issuance of AAA,,AA. 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) requirements of paragraph ILA of this or Ass. Aa, or A as issued by Moodys,
, method or insurance used to provide . (2) For applicants or licensees that do not
"""-#" h licensee must send notice to financial assurana for decommissioning must contain the t esta altema e ,'f
, p c,, ts e l in t alted foHowing conditions: r=="t=*== The notice must be sent h. States of at least $50 million, or at least so
* * *- * '* times the total current decommissioning cost cidSed man, return receipt requeM.
- 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
.RMating To Use ofFinancialTests and must provide alternative financial assurance self-guamateelpicensa.
Self. Guarantee for Providing within 120 days afkr the smd of such 8 scal 7"*
, j"ta p t b $*er de a1 Reeeeeable Assurance of Funds for -
- 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 Rtled Bends ,j- .y . i applicant or licensee Turnishes must provide bonds, a curmat rating for its most recent that: uninsured.uncollateralized, and i y, r ., . ." l L Introduction ' "
,
- A.The guarantee shall remain in form unencumbered bond issuance of AAA, AA,
', ' An app!! cant or licensee may provide unless the licenses sends notice of 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) the financial test of Section H of this .. Ananrimi assurance as specified in the , divided by total revenues must be equal to 'c 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 - '
establishes criteria for passing the financial ., guarantee. . m assets must be less than or equal to 0.67. test for the self. guarantee and establishes the' . C h guarantee and financial test, 1 (c)(Current assets and depreciation fund) terms for a self-guarantee. . provisions must remain in effect until the ' divided by cunent liabuities must be greator , H. FinancialTest. Conunimin has unnbated ee hanse w &an a equal 6 2.55. N *5 " until another Saancial assurance meths d (d) Opwating revenues must be at least 100 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: l -
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( l = e l
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+ 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 data used by the licensee in the financial test, or licenseehas a parent company
,p which is required to be derived from the 5 The authority citation for Part 40 holding majonty control of the voting l
[ stock of the company. Any surety independently audited year end financial continues to read as follows: d statements, based on United States generally
.. method or insurance used to provide 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'-
~-y**, -'
i procedure, the licensee shall inform NRC amended. 3039, sec. 234,83 Stat. 444, as ' 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 , , hcusee no longer passes the test. 11 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 i within 90 days after the close of each 2022). . ,, y. ecs.102, W, W.105,161, succeeding fiscal year. 8. , , , a . 9 6. W,938.
Section 40.7 also issued under Pub. L 95- 948,953,954,955,956, as amended, sec. x.- (3)lf the licensee no longer meets the 601, sec.10,92 Stat. 2951 (42 U.SC 5851). ng requirements of Section I of this appendix, Section 40.31(g) also issued under sec.122, b' ' 4 the licensee must send notice to the NRC of 68 Stat. 939 (42 U.Sc 2152). Section 40.46 3323423 2201,2232 2 so s' der sec. * ' 2236,2239,2282); secs. 201, as amended lts intent to establish alternative financial ' v assurance as specified in NRC regulations. dd U n 23 n 0 7'1 Iso 202,206,88 Stat.1242, as amended 1244, 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). he Secdon 50.7 alsoissued under Pub. L 95-
- return receipt requested, within 90 days after 2237)*
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 such fical year. recorteeping for decommiseloning. 108,68 Stat. 939, as amended (42 U.SC h *
- M *
- l III. SelfCuarantee .
- 2138). Sections 50.23,50.35,50.55, and 50.56 (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 - m Secti ns 50.34 and 50.54 also issued under
- will be paid. A surety method as be sec. 204,88 Stat.1245 (42 U.Sc 58441 unless the limnsee sends notice of t cancellation by certified mail, and/or return th I 8
- b d I'"' I S ctions 50.58,50.91, and 50.92 also issued receipt requested, to the Comml=< ion.
- lin* * ^ E"#'# '
C mPany guarantee of funds for . . - . under Pub. L 97 415,98 Stat. 2073 (42 Cance!!ation may not occur unless an .. 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 f1 i an uEc's pc edin the 8PPendix A to part 30. A parent 2234). Appendix F also issued under sec.
O Commission's regulations within 90 days com y guarantee may not be used in 18 68 t 9,55te t city text of 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 C.The guarantee and financial test this section. For commercial. " * ' (e)(2)(111) is sevised to read as provisions must remain in effect until the corporations that issue bonds', a $ 50.75 Repor9ng and w-_- 'O_.6for. Commission has terminated the license or guarantee of funds by the applicant or i_ - . c.,, pionning. 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 _ *.~ in effect by the licenvee. (e) * * * ' 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
~
the limnsee will fund and carry out the will be paid. A surety method may be '. 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 at cat esumates fu EU M 11 nWA d e lM p m W na and nonprofit hospit a guarantee of- financial test may be usulif the .
$"", E. If at any time, the licensee's most remnt 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 Subpart J also issued under secs. 2(2), 2(15), I guarantee of funds by the applicant or appendix A to part 30. A' parent 2(19),117(a),141(h), Pub. L 97-425,96 Stat. licensee for decommissioning costs company guarantee may not be used in I 2202,2203,2204,2222,2244 (42 U.SC based on a financial test may be used if combination with other financial 10101,10137(a),10161(h)). Subparts K and L l the guarantee and test are as contained' methods to satisfy the requirements cf are also issued under sec.133,9e Stat. 2230 in appendix C to part 30.For this section. For commercial (42..U.SC 10153) and sec. 218(s),96 Stat. l' commercial companies that do not issue corporations that issue bonds, a 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 the guarantee and test are as contained Paragraph (c)(2) la revised to read as ) the guarantee an 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 e = *- * =- - any other financial methods used to financial test may be used if the 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 t ott er fin 5 9.The authority citation for Part 70 ings a continuse to road as follows: . method or insurance use[to provide methods to satisfy the requirements of Authority: Secs. 51,53,161,182,183,68 this section. For commercial financial assurance for Stat. 929,930,948,953,954, as amended, decommissioning must contain the corporations that issue bonds, a n following conditions: guarantee of funds by the applicant or j Q234,83,2g S at2 4 s, 2 licensee for decommissioning costs - j 201, as amended. 202,204,206, 88 Stat- based on a financial test may be used if 1242 as amended.1244,1245.1246 (42 1 PART 72- LICENSING the guarantee and test are as contained
- U.SC 5841,5842,5845,5s481 REQUIREMENTS FOR THE in appendix C ta part 30. For Sections 70.1(c) and 70.20n(b) also issued 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 70.7 also issued under Pub. L 95-601, sec. RADIOACTWE WASTE APPli cant or licensee for .
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 { 939 (42 U.SC 2152). Section 70.31 also continues to read as follows: , l lasued under sec. 57d. Pub. L 93-377,88 in appendix D to part 30. A guarantee 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 70.44 also issued under sec.184,68 Stat. 954, any er 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 situation where the applicant or issued under sec.108,68 Stat. 939, as 2003,2095,2099,2111,2201,2232,2233. 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 2021 majority control of the voting stock of 201asEn d2 ,206, the company, Any sursty method or paragraph (f)(2) is revised to road as 88 Stat 1242, as amended.1244,1246 (42 f;llows: U.SC 5641,5842,5846); Pub. L 95-601, sec. insurance used to provide financial
! ,,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, U.SC 10151,10152 10153,10155,10157, day of May,1998. osted a, nocme.ua,yiand. ,su md 1 (2) A surety method, insurance, or For the Nuclear Regulatory Commission. Other guarantee method. These methods - 10161,10168). Section 72.44(g) also issued under secs. obaC Hoyle,
- guarantee that decommissioning costs 142(b) and 148(c). (d). Pub. L 100-203,101 j willbe paid. A surety method may be Stat.1330-232.1330-238 (42 U.SC Secretary of ge commission.
' 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 credit, or line of credit. AParent
~
I issued under sec.189,68 Stat. 955 (42 U.SC asusso caos rose eue
, 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)).
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