OIG-16-A-16, Status of Recommendations: Audit of the Nrc’S Decommissioning Funds Program, Dated, December 15, 2025
| ML25349A844 | |
| Person / Time | |
|---|---|
| Issue date: | 12/15/2025 |
| From: | Virkar H NRC/OIG/AIGA |
| To: | Mark King NRC/EDO |
| References | |
| OIG-16-A-16 | |
| Download: ML25349A844 (0) | |
Text
NRC Headquarters l 11555 Rockville Pike l Rockville, Maryland 20852 l 301.415.5930 nrcoig.oversight.gov MEMORANDUM DATE:
December 15, 2025 TO:
Michael F. King Acting Executive Director for Operations FROM:
Hruta Virkar, CPA /RA/
Assistant Inspector General for Audits & Evaluations
SUBJECT:
STATUS OF RECOMMENDATIONS: AUDIT OF THE NRCS DECOMMISSIONING FUNDS PROGRAM (OIG-16-A-16)
REFERENCE:
DIRECTOR, OFFICE OF NUCLEAR MATERIAL SAFETY AND SAFEGUARDS, MEMORANDUM DATED DECEMBER 2, 2025 Attached is the Office of the Inspector Generals (OIG) analysis and the status of recommendations as discussed in the agencys response dated December 2, 2025. Based on this response, recommendations 1 and 2 remain open and resolved.
Recommendations 3 through 9 were previously closed. Please provide an updated status of the open, resolved recommendations by September 30, 2026.
If you have any questions or concerns, please call me at 301.415.1982 or Danielle Mahal, Team Leader, at 301.415.5965.
Attachment:
As stated cc: J. Martin, ADO D. Lewis, DADO E. Deeds, OEDO OIG Liaison Resource EDO ACS Distribution
Audit Report AUDIT OF THE NRCS DECOMMISSIONING FUNDS PROGRAM Status of Recommendations (OIG-16-A-16) 2 Recommendation 1:
Clarify guidance to further define legitimate decommissioning activities by developing objective criteria for this term.
Agency Response Dated December 2, 2025: Current Status: The staff plans to add additional criteria to Regulatory Guide (RG) 1.184 (DG-1347) and to specifically indicate that exemptions are needed for any spending of the decommissioning trust fund other than for radiological decommissioning activities.
Background:
The staff originally planned to address this recommendation as part of the proposed power reactor decommissioning rulemaking, Regulatory Improvements for Reactors Transitioning to Decommissioning (RIN 3150-AJ59, NRC-2015-0070). Staff proposed changes to Title 10 of the Code of Federal Regulations (10 CFR), Section 50.82(a)(8)(i)(A) and Section 52.110(h)(1)(i) that removed the term legitimate from the phrase legitimate decommissioning activities and planned to better clarify guidance in RG 1.184 (DG-1347), Decommissioning of Nuclear Power Reactors, to include objective criteria for identifying decommissioning activities and expenses that fall within the definition of decommission in 10 CFR 50.2, Definitions. The proposed objective criteria included:
Expenses directly related to activities that satisfy the definition of decommission in 10 CFR 50.2:
- Expenses directly related to decommissioning planning and execution including consulting and paper studies, environmental assessments, engineering, and licensing activities;
- Expenses directly related to the decontamination and dismantling of systems, structures, and components (SSCs) (labor, materials, and equipment), including disposal of waste generated from decontamination and dismantling activities;
- Expenses directly related to the disposal of contaminated SSCs (labor, materials, and equipment);
- Expenses directly related to radiological soil remediation (labor, materials, and equipment), including disposal of this waste;
Audit Report AUDIT OF THE NRCS DECOMMISSIONING FUNDS PROGRAM Status of Recommendations (OIG-16-A-16) 3 Recommendation 1 (continued):
- Expenses directly related to overhead costs (i.e.,
emergency planning and security) and energy (e.g.,
electricity and fuel) used in support of decommissioning activities and to maintain the safety and security of the site;
- Expenses directly related to undistributed costs such as property taxes and nuclear insurance required while in decommissioning until the license terminated; and,
- Expenses directly related to improving the efficiency and effectiveness of the decommissioning process (demonstrated through a cost-benefit analysis to reduce expenses and preserve the decommissioning fund), and to improve the safety and security of the site.
Additionally, the staff recommended changes to 10 CFR 50.82(a)(8)(viii) to provide a licensee the option to use its decommissioning trust fund for spent fuel management and specific license independent spent fuel storage installation decommissioning costs only if: (1) the licensee has submitted, and the NRC has docketed, the certifications required under 10 CFR 50.82(a)(1) or 10 CFR 52.110(a); (2) 90 days have elapsed since the NRC received the licensees post shutdown decommissioning activities report under 10 CFR 50.82; and (3) the licensee has identified excess funds in the decommissioning trust. Such excess funds would be funds in the trust that are greater than those funds reasonably needed to maintain compliance with 10 CFR 50.82(a)(8)(i)(B) and (C), complete radiological decommissioning, and terminate the license.
The Commission issued SRM-SECY-18-0055 on November 3, 2021, approving publication of the proposed rule and draft guidance. However, the Commission directed the staff to make several changes prior to publication of the proposed rule for public comment. One of the changes directed by the Commission was to disapprove the staffs recommended change to the rule language in 10 CFR 50.82(a)(8)(viii) described above. Therefore, the proposed rule would maintain the status quo in that exemptions are needed for any spending of the decommissioning trust fund other than for radiological decommissioning activities.
Audit Report AUDIT OF THE NRCS DECOMMISSIONING FUNDS PROGRAM Status of Recommendations (OIG-16-A-16) 4 Recommendation 1 (continued):
Timeline: After making the changes directed by the Commission, the proposed rule and, accompanying draft regulatory guides (RGs) (including draft guide (DG) 1347, which contained the additional criteria and guidance on application of exemptions) were published for public comment on March 3, 2022. Initially, the public comment period was 75 days, but after several requests to extend the comment period, it was extended until August 30, 2022.
After the close of the comment period, the staff reviewed all public comments and prepared a final rule package for Commission review and approval. The final rule package (SECY-24-0011) was submitted to the Commission on January 31, 2024. If the Commission approves publication of the final rule, then the staff would make any changes directed by the Commission and then publish the final rule in the Federal Register and issue the final guidance documents, including the updated RG 1.184. The estimated publication date of the final rule is August 2026. However, the actual publication date will depend on the timing of the Commissions review and the direction it provides to the staff.
Proposed Rule Publication Date: 3/3/2022 Estimated Final Rule Publication Date: 8/31/2026 OIG Analysis:
The proposed corrective action addresses the intent of the OIGs recommendation. This recommendation will be closed when the OIG receives and reviews the final rule and associated guidance and determines that it further defines legitimate decommissioning activities by developing objective criteria for this term.
Status:
Open: Resolved
Audit Report AUDIT OF THE NRCS DECOMMISSIONING FUNDS PROGRAM Status of Recommendations (OIG-16-A-16) 5 Recommendation 2:
Develop and issue clarifying guidance to NRC staff and licensees specifying the instances when an exemption is not needed.
Agency Response Dated December 2, 2025: Current Status: The staff plans to add additional criteria to RG 1.184 (DG-1347) and to specifically indicate that exemptions are needed for any spending of the decommissioning trust fund other than for radiological decommissioning activities.
Background:
The staff originally planned to address this recommendation as part of the proposed power reactor decommissioning rulemaking. Staff recommended changes to 10 CFR 50.82(a)(8)(viii) to provide a licensee the option to use its decommissioning trust fund for spent fuel management and specific license independent spent fuel storage installation decommissioning costs only if: (1) the licensee has submitted, and the NRC has docketed, the certifications required under 10 CFR 50.82(a)(1) or 10 CFR 52.110(a); (2) 90 days have elapsed since the NRC received the licensees post shutdown decommissioning activities report under 10 CFR 50.82; and (3) the licensee has identified excess funds in the decommissioning trust. Such excess funds are funds in the trust that are greater than those funds reasonably needed to maintain compliance with 10 CFR 50.82(a)(8)(i)(B) and (C), complete radiological decommissioning, and terminate the license. These criteria would have been incorporated in Regulatory Guide (RG) 1.184 (DG-1347). A licensee that would choose this option would not need to submit a regulatory exemption to use the decommissioning trust fund for spent fuel management and specific license Independent Spent Fuel Storage Installation costs.
Additionally, staff proposed changes to guidance in RG 1.184 to include objective criteria for identifying decommissioning activities and expenses that fall within the definition of decommission in 10 CFR 50.2. These criteria are identified in response to Recommendation 1 from the OIGs Audit of NRCs Decommissioning Funds Program (OIG-16-A-16).
Other revisions to RG 1.184 include the: 1) clarification of the
Audit Report AUDIT OF THE NRCS DECOMMISSIONING FUNDS PROGRAM Status of Recommendations (OIG-16-A-16) 6 Recommendation 2 (continued):
appropriate use of decommissioning planning funds; 2) clarification that funds within a licensees decommissioning trust are exclusively for radiological decommissioning and cannot be used for spent fuel management; and 3) clarification that a regulatory exemption is required for any use of the decommissioning trust fund other than radiological decommissioning, including decommissioning planning.
The Commission issued SRM-SECY-18-0055 on November 3, 2021, approving publication of the proposed rule and draft guidance. However, the Commission directed the staff to make several changes prior to publication of the proposed rule for public comment. One of the changes directed by the Commission was to disapprove the staffs recommended change to the rule language in 10 CFR 50.82(a)(8)(viii) described above. Therefore, the proposed rule would maintain the status quo in that exemptions are needed for any spending of the decommissioning trust fund other than for radiological decommissioning activities.
Timeline: After making the changes directed by the Commission, the proposed rule and accompanying draft regulatory guides (including DG-1347, which contained the additional criteria and guidance on application of exemptions) were published for public comment on March 3, 2022. Initially, the public comment period was 75 days, but after several requests to extend the comment period, it was extended until August 30, 2022. After the close of the comment period, the staff reviewed all public comments and prepared a final rule package for Commission review and approval. The final rule package (SECY-24-0011) was submitted to the Commission on January 31, 2024. If the Commission approves publication of the final rule, then the staff would make any changes directed by the Commission and then publish the final rule in the Federal Register and issue the final guidance documents, including the updated RG 1.184. The estimated publication date of the final rule is August 2026. However, the actual publication date will depend on the timing of the Commissions review and the direction it provides to the staff.
Audit Report AUDIT OF THE NRCS DECOMMISSIONING FUNDS PROGRAM Status of Recommendations (OIG-16-A-16) 7 Recommendation 2 (continued):
Proposed Rule Publication Date: 3/3/2022 Estimated Final Rule Publication Date: 8/31/2026 OIG Analysis:
The proposed actions meet the intent of the recommendation. This recommendation will be closed when the OIG receives and reviews the final rule and associated guidance and determines that it specifies the instances in which an exemption is not needed.
Status:
Open: Resolved