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{{#Wiki_filter:Decommissioning Funding Requirements and Oversight | {{#Wiki_filter:Decommissioning Funding Requirements and Oversight | ||
Decommissioning Funding Overview | June 7, 2022 Decommissioning Strategy Forum | ||
Richard Turtil, Senior Financial Analyst Office of Nuclear Material Safety and Safeguards | |||
1 Decommissioning Funding Overview | |||
* Reactor Licensee Requirements | * Reactor Licensee Requirements | ||
* Minimum Funding Requirements and Formula Calculation - initial and throughout operations | * Minimum Funding Requirements and Formula Calculation - initial and throughout operations | ||
| Line 24: | Line 28: | ||
* Transition to Site-Specific Cost Estimate | * Transition to Site-Specific Cost Estimate | ||
* Decommissioning Funding Lifecycle | * Decommissioning Funding Lifecycle | ||
* Current NRC Rulemaking | * Current NRC Rulemaking | ||
10 CFR 50.75 - Reporting and Recordkeeping for Decommissioning Planning | 2 10 CFR 50.75 - Reporting and Recordkeeping for Decommissioning Planning | ||
* Purpose Provides reasonable assurance that funds will be available for decommissioning after a reactor ceases operations. | * Purpose Provides reasonable assurance that funds will be available for decommissioning after a reactor ceases operations. | ||
* Initial Funding Provided by licensee prior to authorization for initial fuel load and operation. | * Initial Funding Provided by licensee prior to authorization for initial fuel load and operation. | ||
* Licensee Accumulates Funds over Life of Operating Reactor Reported to the NRC at least every two years. | * Licensee Accumulates Funds over Life of Operating Reactor Reported to the NRC at least every two years. | ||
Reported annually if | Reported annually if w ithin 5 years of cessation of operations and w hile in decommissioning. | ||
3 | 3 Minimum Decommissioning Funding Requirement | ||
Minimum Decommissioning Funding Requirement | |||
* NRC Minimum Funding Amount (MFA) adjusted for changes in Labor, Energy, and LLW Burial costs over life of reactor. | * NRC Minimum Funding Amount (MFA) adjusted for changes in Labor, Energy, and LLW Burial costs over life of reactor. | ||
* MFA varies by reactor based on: | * MFA varies by reactor based on: | ||
- Size of Reactor (MWt) - Type of Reactor (BWR vs. PWR) | |||
* MFA is not a site-specific cost estimate. | * MFA is not a site-specific cost estimate. | ||
* MFA covers Radiological Decommissioning only. | * MFA covers Radiological Decommissioning only. | ||
Does not consider spent fuel management, site restoration, and other non-radiological costs. | Does not consider spent fuel management, site restoration, and other non-radiological costs. | ||
NRC Minimum Formula Amount = | 4 NRC Minimum Formula Amount = | ||
(Regulatory Formula Amount) x (Adjustment Factor) | (Regulatory Formula Amount) x (Adjustment Factor) | ||
Example Calculations (approximate estimates): | Example Calculations (approximate estimates): | ||
PWR and BWR of 3,400 MWt Capacity or Greater (Data as of December 31, 2020) | PWR and BWR of 3,400 MWt Capacity or Greater (Data as of December 31, 2020) | ||
Funding Methods | PWR ($105 million) x (labor, energy, and LLW burial adjustment factor of ~ 4.00 - 5.00) | ||
= ~$420 - $525 million $US 2020 | |||
BWR ($135 million) x (labor, energy, and LLW burial adjustment factor of ~ 5.00) | |||
= ~$685 million $US 2020 Funding Methods | |||
* Prepayment | * Prepayment | ||
* External sinking fund | * External sinking fund | ||
| Line 56: | Line 61: | ||
* Statement of intent | * Statement of intent | ||
* Contractual obligations | * Contractual obligations | ||
* Other mechanism or combination | * Other mechanism or combination | ||
Transition to Site-Specific Cost Estimate | 6 Transition to Site-Specific Cost Estimate | ||
* At or about 5 years of the projected end-of-life, a site-specific cost estimate (SSCE) is required which includes a complete up-to-date assessment of major factors that could affect anticipated radiological decommissioning costs. | * At or about 5 years of the projected end-of-life, a site-specific cost estimate (SSCE) is required which includes a complete up-to-date assessment of major factors that could affect anticipated radiological decommissioning costs. | ||
* The SSCE must be greater than or equal to the NRC Minimum Formula Amount. | * The SSCE must be greater than or equal to the NRC Minimum Formula Amount. | ||
Decommissioning Fund Lifecycle | 7 Decommissioning Fund Lifecycle | ||
* Initial Certification of Financial Assurance. | * Initial Certification of Financial Assurance. | ||
* Maintain the NRC MFA throughout operating life of reactor; replaced by SSCE near end of operations and into decommissioning. | * Maintain the NRC MFA throughout operating life of reactor; replaced by SSCE near end of operations and into decommissioning. | ||
| Line 70: | Line 74: | ||
Licensee Provides SSCE 5 years prior to permanent cessation of operations & in Post-Shutdown Decommissioning Activities Report. | Licensee Provides SSCE 5 years prior to permanent cessation of operations & in Post-Shutdown Decommissioning Activities Report. | ||
NRC Inspectors coordinate decommissioning oversight with the technical decommissioning and financial assessment staff. | NRC Inspectors coordinate decommissioning oversight with the technical decommissioning and financial assessment staff. | ||
8 | 8 Transition to Decommissioning Rulemaking - | ||
Transition to Decommissioning Rulemaking - | |||
Decommissioning Funding Assurance | Decommissioning Funding Assurance | ||
* Current GUIDANCE - | * Current GUIDANCE - | ||
o Non-rate-regulated licensees | o Non-rate-regulated licensees shouldmake up shortfalls in decommissioning funding within 2 years and electric utility licensees within 5 years. | ||
* Proposed RULE would - | * Proposed RULE would - | ||
o Clarify that when a licensee identifies a shortfall in biennial report, must obtain additional financial assurance to cover the shortfall in the next report. | o Clarify that when a licensee identifies a shortfall in biennial report, must obtain additional financial assurance to cover the shortfall in the next report. | ||
o Modify biennial reporting frequency for operating reactors to 3-year frequency. | o Modify biennial reporting frequency for operating reactors to 3-year frequency. | ||
* The 3/3/2022 notice announcing the proposed RULE seeks public comment on four decommissioning funding issues - | * The 3/3/2022 notice announcing the proposed RULE seeks public comment on four decommissioning funding issues - | ||
o Financial Assurance and the Minimum Formula Approach/Bulk o Site-Specific Cost Analysis o Decommissioning Trust Fund Assets for Spent Fuel Management and Other Uses o Timing of Decommissioning Fund Assurance Reporting 9 | o Financial Assurance and the Minimum Formula Approach/Bulk o Site-Specific Cost Analysis o Decommissioning Trust Fund Assets for Spent Fuel Management and Other Uses o Timing of Decommissioning Fund Assurance Reporting 9 Thank You! | ||
Rich Turtil U.S. NRC | |||
10}} | |||
Revision as of 23:35, 17 November 2024
| ML22154A016 | |
| Person / Time | |
|---|---|
| Issue date: | 06/07/2022 |
| From: | Richard Turtil NRC/NMSS/DREFS/FAB |
| To: | |
| Watson B | |
| Shared Package | |
| ML22154A011 | List: |
| References | |
| Download: ML22154A016 (10) | |
Text
Decommissioning Funding Requirements and Oversight
June 7, 2022 Decommissioning Strategy Forum
Richard Turtil, Senior Financial Analyst Office of Nuclear Material Safety and Safeguards
1 Decommissioning Funding Overview
- Reactor Licensee Requirements
- Minimum Funding Requirements and Formula Calculation - initial and throughout operations
- Methods of Financial Assurance
- Transition to Site-Specific Cost Estimate
- Decommissioning Funding Lifecycle
- Current NRC Rulemaking
2 10 CFR 50.75 - Reporting and Recordkeeping for Decommissioning Planning
- Purpose Provides reasonable assurance that funds will be available for decommissioning after a reactor ceases operations.
- Initial Funding Provided by licensee prior to authorization for initial fuel load and operation.
- Licensee Accumulates Funds over Life of Operating Reactor Reported to the NRC at least every two years.
Reported annually if w ithin 5 years of cessation of operations and w hile in decommissioning.
3 Minimum Decommissioning Funding Requirement
- NRC Minimum Funding Amount (MFA) adjusted for changes in Labor, Energy, and LLW Burial costs over life of reactor.
- MFA varies by reactor based on:
- Size of Reactor (MWt) - Type of Reactor (BWR vs. PWR)
- MFA is not a site-specific cost estimate.
- MFA covers Radiological Decommissioning only.
Does not consider spent fuel management, site restoration, and other non-radiological costs.
4 NRC Minimum Formula Amount =
(Regulatory Formula Amount) x (Adjustment Factor)
Example Calculations (approximate estimates):
PWR and BWR of 3,400 MWt Capacity or Greater (Data as of December 31, 2020)
PWR ($105 million) x (labor, energy, and LLW burial adjustment factor of ~ 4.00 - 5.00)
= ~$420 - $525 million $US 2020
BWR ($135 million) x (labor, energy, and LLW burial adjustment factor of ~ 5.00)
= ~$685 million $US 2020 Funding Methods
- Prepayment
- External sinking fund
- Surety method, insurance, or other guarantee
- Statement of intent
- Contractual obligations
- Other mechanism or combination
6 Transition to Site-Specific Cost Estimate
- At or about 5 years of the projected end-of-life, a site-specific cost estimate (SSCE) is required which includes a complete up-to-date assessment of major factors that could affect anticipated radiological decommissioning costs.
- The SSCE must be greater than or equal to the NRC Minimum Formula Amount.
7 Decommissioning Fund Lifecycle
- Initial Certification of Financial Assurance.
- Maintain the NRC MFA throughout operating life of reactor; replaced by SSCE near end of operations and into decommissioning.
- Monitoring and Updating of Decommissioning Funding -
Licensee provides Decommissioning Fund Status Report to the NRC (every 2 years); annually in decommissioning.
Licensee Provides SSCE 5 years prior to permanent cessation of operations & in Post-Shutdown Decommissioning Activities Report.
NRC Inspectors coordinate decommissioning oversight with the technical decommissioning and financial assessment staff.
8 Transition to Decommissioning Rulemaking -
Decommissioning Funding Assurance
- Current GUIDANCE -
o Non-rate-regulated licensees shouldmake up shortfalls in decommissioning funding within 2 years and electric utility licensees within 5 years.
- Proposed RULE would -
o Clarify that when a licensee identifies a shortfall in biennial report, must obtain additional financial assurance to cover the shortfall in the next report.
o Modify biennial reporting frequency for operating reactors to 3-year frequency.
- The 3/3/2022 notice announcing the proposed RULE seeks public comment on four decommissioning funding issues -
o Financial Assurance and the Minimum Formula Approach/Bulk o Site-Specific Cost Analysis o Decommissioning Trust Fund Assets for Spent Fuel Management and Other Uses o Timing of Decommissioning Fund Assurance Reporting 9 Thank You!
Rich Turtil U.S. NRC
10