ML15041A195

Letter from Virginia C. Gregg Supporting Self-guarantee Financial Test to Demonstrate Financial Assurance, as Specified in 10 CFR Part 30

ML15041A195
Person / Time
Site:	Rensselaer Polytechnic Institute
Issue date:	01/23/2015
From:	Gregg V Rensselaer Polytechnic Institute
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML15041A195 (4)

Text

( ~ c~--ic c chcle -I'VICE PRESIDENT FOR FINANCE

• Rensselaer AND CHIEF FINANCIAL OFFICER

'5 U.S. Nuclear Regulatory Commission.

ATTN: Document Control Desk Washington, DC 20555 I am the Chief Financial Officer of Rensselaer Polytechnic Institute, a nonprofit university. This letter is in support of this firm's use of the self-guarantee financial test to demonstrate financial assurance, as specified in 10 CFR Part 30. This firm has no parent company holding majority control of its voting stock.

This firm guarantees, through the self-guarantee submitted to demonstrate compliance under 10 CFR Part 30, the decommissioning of the following facilities owned or operated by this firm. The current cost estimates or certified amounts for decommissioning, so guaranteed, are shown for each facility:

Name of Facility License Number Location of Facility Current Cost Estimates Rensselaer Polytechnic CX-22 Schenectady, NY $450,000 Institute Reactor Critical Facility I hereby certify that Rensselaer Polytechnic Institute is currently a going concern, and that it possesses positive tangible net worth in the amount of $471,133,000 as of June 30, 2014. This is derived from this firm's independently audited, year-end financial statements and footnotes for the latest completed fiscal year, ended June 30, 2014.

This firm is not required to file a Form 10-K with the U.S. Securities and Exchange Commission for the latest fiscal year.

This firm satisfies the following self-guarantee test: Rensselaer Polytechnic Institute current bond rating for its most recent uninsured, uncollateralized, and unencumbered bond issuance is A as issued by Standard and Poors. I hereby certify that the content of this letter is true and correct to the best of my knowledge.

ice President of Finance and Chief Financial Office Rensselaer Polytechnic Institute January 23, 2015 Rensselaer Polytechnic Institute 110 8th Street I Troy, NY 12180.3590 1Troy Bldg 5th Floor Phone (518) 276-6426 I Fax (518) 276-8200

SELF-GUARANTEE Guarantee made this January 23, 2015 by Rensselaer Polytechnic Institute, a nonprofit university organized under the laws of the State of New York, herein referred to as "guarantor," to the U.S.

Nuclear Regulatory Commission (NRC), beneficiary, on behalf of ourselves as licensee.

Recitals The guarantor has full authority and capacity to enter into this self-guarantee.

This self-guarantee is being issued to comply with regulations issued by NRC, an agency of the U.S.

Government, pursuant to the Atomic Energy Act of 1954, as amended, and the Energy Reorganization Act of 1974. NRC has promulgated regulations in title 10, Chapter I of the Code of FederalRegulations, Part 30, which require that a holder of, or an applicant for, a materials license issued pursuant to 10 CFR Part 30 provide assurance that funds will be available when needed for required decommissioning activities.

The self-guarantee is issued to provide financial assurance for decommissioning activities for the Rensselaer Polytechnic Institute Reactor Critical Facility, located at 1947 Erie Boulevard, Schenectady, NY, and operated under Facility Operating License No. CX-22, as required by 10 CFR Part 30, The decommissioning costs for these activities are as follows: $450,000.

The guarantor meets or exceeds the following financial test criteria regarding bond rating and agrees to comply with all notification requirements as specified in 10 CFR Part 30 and Appendix E to 10 CFR Part 30.

The guarantor meets the following self-guarantee test:

(a) A current rating for its most recent uninsured, uncollateralized, and unencumbered bond issuance of AAA, AA, or A as issued by Standard & Poor's, or Aaa, Aa, or A as issued by Moody's.

5. The guarantor does not have a parent company holding majority control of its voting stock.

6. Decommissioning activities as used below refer to the activities required by 10 CFR Part 30 for decommissioning of the facilities identified above.

7. Pursuant to the guarantor's authority to enter into this guarantee, the guarantor guarantees to NRC that the guarantor shall (a) carry out the required decommissioning activities, as required by License No. CX-22 or (b) set up a trust fund in favor of the above identified beneficiary in the amount of the current cost estimates for these activities.

8. The guarantor agrees to submit revised financial statements, financial test data, and an auditor's special report and reconciling schedule annually within 90 days of the close of its fiscal year.

9. The guarantor agrees that if, at the end of any fiscal year before termination of this self-guarantee, it fails to meet the self-guarantee financial test criteria, it shall send within 90 days of the end of the fiscal year, by certified mail, notice to NRC that it intends to provide alternative financial assurance as specified in 10 CFR Part 30. Within 120 days after the end of the fiscal year, the guarantor shall establish such financial assurance.

10. The guarantor also agrees to notify the beneficiary promptly if the ownership of the licensed activity is transferred, and to maintain this guarantee until the new licensee provides alternative financial assurance acceptable to the beneficiary.

11. The guarantor agrees that if it determines, at any time other than as described in Recital 9, that it no longer meets the self-guarantee financial test criteria or it is disallowed from continuing as a self-guarantor, it shall establish alternative financial assurance as specified in 10 CFR Part 30, 40, 70, or 72, as applicable, within 30 days.

12. The guarantor, as well as its successors and assigns, agrees to remain bound jointly and severally under this guarantee notwithstanding any or all of the following: amendment or modification of the license or NRC-approved decommissioning funding plan for that facility, the extension or reduction of the time of performance of required activities, or any other modification or alteration of an obligation of the licensee pursuant to 10 CFR Part 30.

13. The guarantor agrees that it shall be liable for all litigation costs incurred by the beneficiary, NRC, in any successful effort to enforce the agreement against the guarantor.

14. The guarantor agrees to remain bound under this self-guarantee for as long as it, as licensee, must comply with the applicable financial assurance requirements of 10 CFR Part 30, for the previously listed facilities, except that the guarantor may cancel this self-guarantee by sending notice by certified mail to NRC, such cancellation to become effective not before an alternative financial assurance mechanism has been put in place by the guarantor.

15. The guarantor agrees that if it, as licensee, fails to provide alternative financial assurance as specified in 10 CFR Part 30, as applicable, and obtain written approval of such assurance from NRC within 90 days after a notice of cancellation by the guarantor is received by NRC from the guarantor, the guarantor shall make full payment under the self-guarantee.

16, The guarantor expressly waives notice of acceptance of this self-guarantee by NRC. The guarantor also expressly waives notice of amendments or modifications of the decommissioning requirements.

17. If the guarantor files financial reports with the U.S. Securities and Exchange Commission, then it shall promptly submit them to its independent auditor and to NRC during each year in which this self-guarantee is in effect.

18. The guarantor agrees that if, at any time before termination of this self-guarantee, its most recent bond issuance ceases to be rated in the category of"A" or above by either Standard & Poor's or Moody's, it shall provide notice in writing of such fact to NRC within 20 days after publication of the change by the rating service.

I hereby certify that this self-guarantee is true and correct to the best of my knowledge.

Effective date: / -/)

Rensselaer Polytechnic Institute S Finance and Chief Financialyr Signature of witness or notary:.