ML22154A016
| 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 within 5 years of cessation of operations and while 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 should make 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