ML20138F438

Proposed Rules 10CFR30,40,50,70 & 72 Re Self-Guarantee of Decommissioning Funding by Non-Profit & Non-Bond Issuing Licensees. Rule Would Allow non-profit Licensees,Who Do Not Issue Bonds,To self-guarantee Funding

ML20138F438
Person / Time
Issue date:	04/24/1997
From:	Hoyle J NRC OFFICE OF THE SECRETARY (SECY)
To:
References
FRN-62FR23394, RULE-PR-30, RULE-PR-40, RULE-PR-50, RULE-PR-70, RULE-PR-72 PR-970424, NUDOCS 9705050392
Download: ML20138F438 (39)

Text

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DOCKET NUMBER nn DOCKETED '

7 , PROPOSED RULE rl) 30Mo,50.70/72 USHm390-0'-P]

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NUCLEAR REGULATORY COMMISSION 10 CFR Parts 30, 40, 50. 70, and 7pFFICE OF SECRETARY DOCKETING & SERVICE RIN 3150-AF64 DKANCH 4

i Self-Guarantee of Decomissioning Funding by Non-Profit and Non-Bond Issuing Licensees p ,

I l AGENCY: Nuclear Regulatory Comission.

t ACTION: Proposed rule.

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SUMMARY

The Nuclear Regulatory Comission is proposing to amend its .

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regulations to allow additional materials licensee,s and non-electric utility .

reactor licensees who meet certain financial criteria to self-guarantee

! funding for decomissioning. Certain comercial corporate licensees who issue bonds are presently allowed to self-guarantee funding if they meet stringent financial criteria. The proposed rule would allow non-profit licensees, such

as colleges universities, and hospitals. and also some commercial licensees who do not issue bonds, to self-guarantee funding, provided they meet  ;

similarly stringent fvlancial criteria. Allowing qualified non-profit ana-non-bond-issuing licensees to use self-guarantee would reduce the costs of d n t complying with NRC financial assurance requirements while providing adequate confidence to the NRC that funds for decomissioning will be available when /

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9705050392 970424 PDR PR affpR FR 233W 30 62FR23394 PDR

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i l OATES: Submit comments by (coment per.iod 90 days) Gala J9

. 1997. -

i Comments received after this date will be considered if it is practical to do a '

i so, but thiNRC is able to assure consideration only for comments received on or before thi's date.

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ADDRESSES

Comments may be sent to the Secretary, U.S. Nuclear Regulatory

[- Comission. Washington, DC 20555-0001., Attn: Docketing and Service Branch.

Hand deliver comments to 11545 Rockville Pike, Rockville, Maryland. between 7:45 a.m. and 4:15 p.m. on Federal workdays.

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i ' Single copies of this proposed rulemaking may be obtained by written request to Distribution and Services Section, Printing, Graphics and Mail l Services Branch. Office of Administration, U.S. Nuclear Regulatory Commission.

l Washington DC 20555-0001. or by telefax to (301) 415-2260. For information on I submitting comments electronically see the discussion under Electronic Access

! in the Supplementary Information section. Certain documents related to this i

f rulemaking, including comments received, may be examined at the NRC Public h Document Room, 2120 L Street NW. (Lower level), Washington DC. These same 2

l documents also may be viewed and downloaded electronically via the Electronic l Bulletin Board established by NRC for this rulemaking as indicated in the discussion under Electronic Access.

FOR FURTHER INFORMATION CONTACT: Dr. Clark Prichard. Office of Nuclear Regulatory Research, U.S. Nuclear Regulatory Commission, Washington. DC 20555, telephone (301)415-6203. e-mail cwp@n'rc. gov.

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i SUPPLEMENTARY INFORMATION:

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Licensees subject to 10 CFR Parts 30. 40, 70, and 72. whose operations involve the use of substantial amounts of nuclear materials, and those subject .

to'10 CFR Part 50 who are applicants for or holders of operating licenses for l-

[ production or utilization facilities must provide financial assurance for decommissioning funding by selecting from a variety of mechanisms: surety bond -

l or letter of cvdit, prepayment, insurance, an external sinking fand coupled 4

with a surety or insurance.2 parent company guarantee for licensees that have i' a qualifying corporate parent, and, for certain financially strong

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j corporations. self-guarantee. A statement of intent regarding obtaining funds j to satisfy decommissioning obligations may be used by some licensees that dre  !

governmental entities (for example, public universities whose charter provides i

l for a direct link to the State Government).

Licensees currently using self-guarantee must pass a stringent financial i test that is given in Appendix C to 10 CFR Part 30. Self-guarantee is  !

currently not available to non-profit licensees, such as hospitals and universities, or to for-profit licensees who do not issue bonds, because the I

financial test for self-guaran' 2e uses the rating of the bonds issued by the  ;

} .l licensee as one measure of its financial resources and ability to fund l

i decommissioning.

2 Pursuant to 10 CFR 50.75(e)(3), an electric utility can satisfy the l decommissioning funding requirements with an external sinking fund, standing alone. This rulemaking does not apply to electric utilities, and does not

affect the NRC's Advance Notice of Proposed Rulemaking which addresses

! decommissioning funding assurance issues associated with electric utility restructuring (see Financial Assurance Requirements for Decommissioning Nuclear Power Reactors--61 FR 15427 April 8, 1996).

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The NRC has determined that the use of self-guarantee, currently limited ,

to bond-issuing industrial corporations, could be made available to additional categories of licensees without -jeopardizing the present high level of-financial assurance that the decommissioning obligation requires. Allowing qualified non-profit and non-bond issuing licensees to use self-guarantee would reduce the costs of complying with NRC financial assurance requirements for those who meet the specified criteria.

I. Background i

I On December 29, 1993 (58 FR 63726), as corrected on January 12, 1994 (59 1

FR 1618). the NRC published a notice of final rulemaking that allows  !

l financially strong corporations with A or better bond ratings the option of  !

1 using self-guarantee as a mechanism for complying with the regulations on financial assurance for decommissioning. .Self-guarantee was added to the list of financial assurance mechanisms as a cost-saving option for those licensees able to meet the stringent financial test required. The NRC's self-guarantee pr0cedure requires licensees to pass the financial test annually. In ]

1 addition NRC's requirements for self-guarantee provide for early reporting by l licensees of any deterioration in financial condition.

The NRC's decision to add self-guarantee by qualifiea licensees to the list of approved financial assurance mechanisms came in response to a petition for rulemaking filed by General Electric and Westinghouse (PRM-30-59, notice of receipt published September 25, 1991 (56 FR 48445). The petition presented l a case for allowing self-guarantee as a cost saving option for corporate 4

f- licensees able to pass a stringent financial test. The NRC published a notice 11, 1993 (58 FR 3515), in response to the of proposed rulemaking on January petition. Several comment letters were received from universities requesting that self-guarantee also be applied to non-profit entities able to pass a financial test. At that time, the NRC had not conducted an analysis of the feasibility of applying self-guarantee to non-profit entities. In the final rule, the NRC stated that "In order to extend the use of self-guarantee to non-profit entities, new criteria would have to be developed to assess the financial strength of the non profit licensees. Development of financial criteria to assess the qualifications of a non-profit entity to provide a self-guarantee is likely to require detailed consideration of the different financial accounting methods used by medical institutions. The financial accounting and reporting of non-profit entities are unique and substantially different from the accounting and reporting of for-profit entities" (58 FR 68728).

Subsequent to the December 29. 1993. final rule. the Commission initiated a study to determine whether criteria could be developed and applied by NRC for non-profit licensees and non-bond issuing commercial licensees to use self-guarantee while maintaining the required level of confidence The study.

regarding the availability of decommissioning funds when needed.

" Analysis of Potential Self-Guarantee Tests for Demonstrating Financial Assurance by Nonprofit Colleges and Universities and Hospitals and by Business 5

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2 Firms that Do Not Issue Bonds." NUREG\CR-C514, identified a variety of .

financial criteria that could be applied to additional categories of licensees regarding the use of self-guarantee. The financial criteria proposed here were selected by the NRC based on information in this report. The NRC believes that the financial criteria proposed in this notice would maintain the high level of assurance of availability of decommissioning funding pruvided by the present self-guarantee mechanism for bond-issuing licensees.

II. Analysis of Financial Criteria The NRC must have evidence of adequate financial strength on the part of the licensee to ensure that decommissioning funding obligations will be met when the need arises. If self-guarantee is permitted. the applicant or licensee must submit a basis for concluding that decommissioning financial assurance is still provided.

Financial strength does not necessarily depend on the type of licensee.

Many colleges and universities have very strong financial positions, with large endowment funds that could be used, if needed, for decommissioning funding.

Some hospitals are also quite financially strong.

With respect to non-bond issuing commercial firms. their lack of any bond issuance could reflect financial resources great enough to preclude the need to issue debt.

If a college university or hospital has an A or better bond rating.

2 Public Document Room at 2120 L St. NW Washington, DC: Copies are a the PDR's mailing address is Mail Stop LL-6.

3273: Washington. DC 20555-0001: telephone (202) 634-fax (202) 634-3343. Single copies are available from the NRC contact.

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.the financial assurance risk of allowing it to self-guarantee decommissioning -

funding is comparable to the financial assurance risk of institutions currently allowed to self-guarantee. This risk is also based on an A or better bond rating. The risk of default of industrial bond issuers with an A I l or.better bond rating has been estimated at less than 1 percent annually '

An A or better bond r'ating indicates that the issuer has passed a stringent  !

review by the independent ratings agencies of its ability to meet financial obligations. Bond ratings are reviewed often and changed in response to l changes in the issuer's financial condition. The A or better bond rating should be for uninsured bonds. As discussed in NUREG\CR-6514. insured bond l ratings are in fact the rating of the insuring company and may not apply to l the institution that holds the NRC license.

Regarding. financial criteria that cre based on factors other than bond ratings. quantitative estimates of financial assurance risk are not available because of the lack of a large financial database such as that maintained by the' bond-rating agencies on bond-issuing entities. The NRC has aeliberately I chosen non-bond rating financial criteria that are conservative. The NRC regulations'have included a self-guarantee mechanism for only a few years. It seems prudent to set the threshold financial criteria at a high level. At some future time, as more experience is gained with self-guarantee, the  !

financial criteria can be reviewed, and appropriate revisions can be proposed.

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Coroorate Bond Defaults and Default Rates. Moodys Special Report.

January 1991. p. 32. ,

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r A. Criteria for Colleaes and Universities:

Approximately 75 percent of NRC's college and university licensees issue bonds and have bond ratings. Bond rating can thus be used as a basis for ,

financial criteria for most college and university licensees. Note that many college or university licensees are public institutions and a large portion of these can use a governmental statement of intent that funds for decommissioning will be obtained when necessary, a mechanism which does not i l

involve any significant cost to the licensee. The NRC believes that the A or better bond rating (for uninsured bonds) criterion used in the existing self- )

guarantee financial test can also be used as the criterion in a financial test for use by colleges and universities. Even if an applicant or licensee were a non-profit entity or a for-profit firm that does not issue bonds, it may obtain a bond rating from one of the major ratings agencies. This option would be allowed. Having obtained a bond rating, the licensee would be subject to the same requirements as the bond-issuing institutions.

For licensees without a bond rating, a level of unrestricted endowment of at least $50 million, or at least 30 times projected decommissioning costs, whichever is larger, should be sufficient to allow use of self-guarantee.

This level of endowment is adequate to generate annual income sufficient to cover the upper range of estimated decommissioning costs. The multiple of 30 has been chosen because this would mean that any level of decommissioning costs could be covered by the annual return on an endowment invested at 3 percent.

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B. Criteria for Hosoitals:

Approximately 50 percent of hospital licensees issue bonds and have bond ratings. For the same reasons outlined above a criterion of an A or better bond rating could be used for hospital licensees. The A or better rating should be for unguaranteed, uninsured, or uncollateralized bonds.

For hospital licensees without a bond rating, three financial ratios are identified as most accurate indicators of financial strength: (1) liquidity --

(current assets and depreciation fund, divided by current liabilities).

(2) net revenue -- (total revenue less total expenses, divided by total revenue), and (3) leverage -- (ratio of long term debt to net fixed assets).

Numerical values for these ratios have been developed by reviewing the financial characteristics of hospitals. The licensee must meet all three ratios. The proposed values are as follows, and based upon the analysis .

performed for the NRC represent a level of financial risk comparable to an A bond rating:

(a) Liquidity -- (Current assets and depreciation fund, divided by current liabilities) greater than or equal to 2.55 (b) Net revenue -- (Total revenues less total expenditures divided by total revenues) greater than or equal to .04.

(c) Leverage -- (Long term debt divided by net fixed assets) less than or equal to .67.

In addition, a hospital must be of a minimum size relative to estimated decommissioning costs. The financial test calls for hospital operating 9

revenues to be at least 100 times decommissioning costs.

l C. Criteria For Non-Bond Issuino Industrial Corocrations: i 1

, A financial ratios test is an alternative to bond rating which is i 9 l currently allowed by NRC regulations. The NRC parent auarantee test in l I

-Appendix A to 10 CFR Part 30 includes a ratio test as an alternative to a bond i

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rating test. The proposed criterion is Cash Flow div.ided by Total Liabilities  !

i- greater than 0.15. Total Liabilities div.ided by Net Worth less than 1.5, and 5

Net Worth greater than $10 million or at least 10 times decommissioning costs, 4 whichever is greater. The financial assurance risk of using such a criterion is estimated to be comparable to the risk associated with current j regulations.'

i i D. Cost Savinas:

1 Cost savings would result because qualifying licensees would not have to i purchase other types of financial assurance instruments such as letters of a

credit or surety bonds. These types of financial assurance instruments typically cost a licensee approximately 1.5 percent per annum of the amount of financial assurance purchased. )

i Estimates of the numbers of NRC licensees who could qualify for self- '

guarantee under the proposed financial criteria and estimated total cost ,

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'" Analysis of Potential Self-Guarantee Tests for Demonstrating Financial Assurance by Nonprofit Colleges and Universities and Hospitals and by Business Firms that do not Issue Bonds". NUREG\CR-6514. 1995, p. 47.

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savings on an annual ,

basis are as follows, and for colleges and universities  !

l l- includes estimates for the reactors licensed to them as well as materials l

licenses:

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Tvoe of Licensee Number Qualifyina Total Annual Cost Savinas College and University 25-30 $350K - $400K Hospital 10-14 $120K - $150K l 1

Non-Bond Issuing Industrial 2-4 $20K - $40K The total cost savings for all licensees estimated to qualify for self-guarantee could range from approximately $500K to $600K per annum. Greater cost savings would result if Agreement States allow self-guarantee for their.

licensees.

There would be no. significant cost impact on NRC as review time for the l

various financial assurance mechanisms'is essentially the same.

III. Section-by-Section Description of Ch'6nges 10 CFR Part 30 Section 30.35 is amended to permit self-guarantee for financial assurance which can be used by qualified non-profit licensees and non-bond issuing licensees.

Appendix 0 is added to 10 CFR Part 30 to establish requirements for self-guarantee by non-bond issuing commercial licensees. Appendix E is added to 10 CFR Part 30 to establish requirements for self-guarantee for non-profit l

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f college. university and hospital licensees. .

i 10 CFR Part 40

-Section 40.36 is amended to permit self-guarantee for financial assurance which can be used by qualified non-profit licensees and non-bond issuing licensees.

10 CFR Part 50 Section 50.75 is amended to permit self-guarantee for financial assurance which can be used by qualified non-profit licensees and non-bond issuing licensees.

10 CFR Part 70 ,

Section 70.25 is amended to permit self-guarantee for financial assurance which can be used by qualified non-profit licensees and non-bond 4

issuing licensees.

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10 CFR Part 72 Section 72.30 is amended to permit self-guarantee for financial assurance which can be used by qualified non-bond issuing licensees.

IV. Issues for Public Comment

-(A) Agreement State Implementation Issues.

Financial assurance mechanisms ar' a Division II.ccmpatibility item.

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Agreement States may adopt regulations of equal or greater stringency. States I would therefore have the option to allow self-guarantee. An Agreement State

, does not need to change'its financial assurance regulations if this proposed rule becomes final. The existing Agreement State regulations on financial assurance do not have to include self-guarantee as a financial assurance mechanism. Agreement States have the flexibility to allow self-guarantee as a financial assurance mechanism or not to allow it. The NRC invites comments on the general issue of the compatibility status of its financial assurance regulations.

(B) Financial Criteria for Non-Bond Issuing Entities.

As discussed, substantial data exist on the default risks associated with various levels of bond rating. However, a quantitative estimate is not available for the financial assurance risk associated with the non-bond rating criteria proposed here. The NRC invites comment on whether these proposed criteria are sufficiently rigorous with respect to financial assurance risk, or conversely, whether they are so stringent as to exclude licensees who should not be excluded because their financial position is such that the financial assurance risk is acceptable. ,

Electronic Access Comments may be submitted electronically, in either ASCII text or Wordperfect format (version 5.1 or later), by calling the NRC Electronic 13 I l

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Bulletin Board (BBS) on FedWorld. The bulletin board may be accessed using a .

personal computer, a modem, and one of the commonly available communications software packages, or directly via Internet. Background documents on the {

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l rulemaking are also available, as practical, for downloading and viewing on I 1

l the bulletin board.

If using a personal computer and modem, the NRC rulemaking subsystem on l

FedWorld can be accessed directly by dialing the toll free number (800) 303-l 9672. Communication software parameters should be set as follows: parity to i none, data bits to 8. and stop bits to 1 (N.8,1). Using ANSI or VT.100 terminal emulation, the NRC rulemaking subsystem can be accessed by selecting the " Rules Menu" option from the "NRC Main Menu." Users will find the "FedWorld Online User's Guides" particularly helpful. Many NRC subsystems and data bases also have a " Help /Information Center" option that is tailored to the particular subsystem.

The NRC subsystem on FedWorld can also be accessed by a direct dial phone number.for the main FedWorld BBS (703) 321-3339, or.by using Telnet via Internet: .fedworld. gov. If using (703) 321-3339 to contact FedWorld, the NRC subsystem will be accessed from the main FedWorld menu by selecting the

" Regulatory. Government Administration and State Systems." then selecting

" Regulatory.Information Mall." At that point, a menu will be displayed that has an option "U.S Nuclear Regulatory Commission" that will take the user to the NRC online main menu. The NRC online area also can be accessed directly l

by typing "/go NRC" at a FedWorld command line. If the user accesses NRC from FedWorld's main menu. he or she may return to FedWorld by selecting the l " Return to FedWorld" option from the NRC online Main Menu. However, if the user accesses NRC at FeaWorld by using NRC's toll-free number, he or she will 14

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have full access to all NRC systems but will not have access to the main FedWorld system.

If the user contacts FedWorld using Telnet, he or she will see the NRC area and menus, including the Rules Menu. Although the user will be able to download documents and leave messages. he or she will not be able to write comments or upload files (comments). If the user contacts FedWorld using FTP, all files can be accessed and downloaded but uploads are not d11 owed: all the user will see is a list of files without descriptions (normal Gopher look).  !

An index file is available listing and describing all files within a subdirectory. There is a 15-minute time limit for FTP access.

l Although FedWorld also can be accessed through the World Wide Web. like

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FTP that mode only provides access for downloading files and does not display I the NRC Rules Menu.

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For more information on NRC bulletin boards call Mr. Arthur Davis.

Systems Integration and Development Branch NRC, Washington. DC 20555.

telephone (301) 415-5780: e-mail AXD3@nrc. gov.

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Finding of No Significant Environmental Impact: Availabil. I l

l The proposed amendments would allow qualified non-profit and non-bond-issuing licensees the option of using self-guarantee as a mechanism for financial assu-ance for decommissioning. For-profit corporate licensees that issue bonds are already allowed to use self-guarantee if they meet the regulatory criteria. Other licensees may currently elect to use a variety of financial assurance mechanisms, such as surety bonds, letters of credit, and i

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escrow accounts to comply with_ decommissioning regulations. The proposed action is intended to offer non-profit and non-bond issuing-nuclear materials licensees and non-power reactor licensees greater flexibility by allowing an  ;

additional mechanism for licensees that meet the financial criteria for use of )

self-guarantee. l 1

l This proposed revision to the NRC's regulations simply would add one more financibl assurance mechanism to the mechanisms currently available. It would not affect the cost of decommissioning materials and non-power reactor facilities. Allowing self-guarantee for additional types of licensees would not lead to any increase in the effect on the environment of the decommissioning activities considered in the final rule published on June 27, 1988 (53 FR 24018), as analyzed in the Final Generic Environmental Impact Statement on Decommissioning of Nuclear Facilities (NUREG-0586. August.

1988).5 Promulgation of this rule would not introduce any impacts on the envi/onmentnotpreviouslyconsideredbytheNRC. Therefore, the Commission has determined, under the National Environmental Policy Act of 1969, as amended and the Commission's regulations in subpart A cf 10 CFR Part 51. that this proposed rule would not be a major Federal action significantly affecting  ;

the quality of the human environment. and therefore an environmental impact I statement is not required. No other agencies or persons were contacted in making this determination. and the NRC staff is not aware of any other 5

Copies of NUREG-0586 are available for inspection or copying for a fee from the NRC Public Document Room at 2120 L Street NW (Lower Level).

Washington, DC 20555-0001: telephone (202)634-3273: fax (202)634-3343. Copies <

a1ay be purchased at current rates from the U.S. Government Printing Office. I P.O. Box 370892. Washington. DC 20402-9328 (telephone (202)512-2249): or from i the National Technical Information Service by writing NTIS at 5285 Port Royal I Road. Springfield. VA 22161.

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The foregoing

' documents related to the environmental impact of this action.

constitutes the environmental assessment and finding of no significant impact for this proposed rule.

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1 Paperwork Reduction Act Statement This proposed rule amends information collection requirements that are subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). This rule has been submitted to the Office of Management and Budget for review and i approval of the information collection requirements.

I The public reporting burden for this collection of information is estimated to average 9-14 hours per response, including the time for reviewing

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instructions, searching existing data sources, gathering and maintaining the l

i data needed, and completing and reviewing the collection of information. The U.S. Nuclear Regulatory Commission is seeking public comment on the potentia.1 impact of the collection of information contained in the proposed rule and on i the following issues:

1. Is .the proposed collection of information necessary for the proper performance of the functions of the NRC, including whether the information will have practical utility? i i

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2. Is the estimate of the burden correct?

3. Is there a way to enhance +he quality, utility, and clarity of the information to be collected?

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4. How can the burden of the collection of information be minimized,  !

including the use of automated collection techniques?

Send comments on any aspect of this proposed collection of information, i including suggestions for reducing the burden, to the Information and Records j 18

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• Management Branch (T-6 F33). U.S. Nuclear Regulatory Commission. Washington.

DC 20555-0001, or by Internet electronic mail at BJSl@NRC.G0V; and to the Desk -

Officer. Office of Information and Regulatory affairs. NE0B-10202. (3150-0017.

-0020. -0011. -0009, and -01320. Office of Management and Budget. Washington. ,

DC 20503. -

! Comments to OMB on the collections of information or on the above issues j should be submitted by (insert date 30 days after publication in the Federal

! Register). Comments received after this date will be considered if it is practical to do so, but assurance of consideration cannot be given to comments received after this date.

6 Public Protection Notification The NRC may not conduct or sponsor, and a person is not required to l i

respond to, a collection of information unless it displays a currently valid OMB control number. I Regulatory Analysis The NRC has prepared a draft regulatory analysis on this proposed i regulation. The analysis examines the costs and benefits of the alternatives considered by the NRC. The draft analysis is available for inspection in the NRC Public Document Room. 2120 L Street NW (Lower Level). Washington, DC.

l Single copies of the analysis may be obtained from Clark Prichard. Office of I Nuclear Regulatory Research. U.S. Nuclear Regulatory Commission. Washington.

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I DC 20555. telephone (301) 415-6203. -

'The NRC requests public comment on the draft analysis. Comments on the draft analysis may be subinitted to the NRC as indicated under the ADDRESSES

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heading.

Regulatory Flexibility Certification In accordance with the Regulatory Flexibility Act of 1980. (5 U.S.C.

605(b)), the Commission certifies that this rule will not, if promulgated, have a significant economic impact on a substantial number of small entities.

This proposed rule would expand the number of options available to licensees to comply with the Commission's~ financial assurance requirements, thus enhancing the flexibility of these regulations. It is estimated that this proposed rule if promulgated as final, would result in tignificant cost savings to qualifying licensees.

Backfit Analysis The NRC has determined that the backfit rule.10 CFR 50.109, does not i

apply to this proposed rule and, therefore, that a backfit analysis is not 'I required for this proposed rule, because 10 CFR 50.109 addresses only the process for controlling backfits of nuclear power reactors and this proposed  ;

rule does not affec.t the Commission's decomissioning financial assurance requirements regarding nuclear power reactors (ite Statement of l

Considerations: Final Rule--Revision of Backfitting Process for Power l Reactors. 50 FR 38097: September 20, 1985).

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ListofSubjects , ,

10 CFR Part 30 Byproduct material. Criminal penalties. Government contracts.

Intergovernmental relations. Isotopes. Nuclear materials. Radiation protection, Reporting and recordkeeping requirements. ,

10 CFR Part 40 .

c Criminal penalties. Government contracts. Hazardous materials i transportation. Nuclear materials. Reporting and recordkeeping requirements. .

Source material. Uranium.

10 CFR Part 50 Antitrust. Classified information. Criminal penalties. Fire protection.

Intergovernmental relations. Nuclear power plants and reactors. Radiation protection. Reactor siting criteria Reporting and recordkeeping requirements. .

10 CFR Part 70 Criminal penalties. Hazardous materials transportation. Material control and accounting. Nuclear materials. Packaging and containers. Radiation protection. Reporting and recordkeeping requirements. Scientific equipment.

Secur.ity measures. Special nuclear material. .

10 CFR Part 72 -

Manpower training programs Nuclear materials. Occupational safety and 21 I

,n-. - w- - - - e

health, Reporting and recordkeeping requirements Security measures. Spent -

fuel.

For the reasons set out in the preamble and under the authority of the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974, as amended, and 5 U.S.C. 553, the NRC is proposing to adopt the following amendments to 10 CFR Parts 30, 40, 50, 70, and 72.

PART 30 - RULES OF GENERAL APPLICABILITY TO DOMESTIC LICENSING OF BYPRODUCT MATERIAL

1. The authority citation for Part 30 continues to read as follows:

AUTHORITY: Secs. 81, 82, 161, 182, 183, 186, 68 Stat. 935, 948, 953, 954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2111, 2112, 2201, 2232, 2233, 2236, 2282); secs. 201, as amended. 202, 206, 88 Stat.

1242, as amended. 1244, 1246 (42 U.S.C. 5841, 5842, 5846).

Section 30.7 also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851). Section 30.34(b) also issued under sec. 184, 68 Stat. 954, as amended (42 U.S.C. 2234). Section 30.61 also issued under sec. 187. 68 Stat. 955 (42 U.S.C. 2237).

2. In S 30.8 paragraph (b) is revised to read as follows:

S 30.8 Information collection reauirements: OMB acoroval.

(b) The approved information collection requirements contained in this part appear in SS 30.9. 30.11, 30.15, 30.19, 30.20, 30.32. 30.34, 30,35, 22

r

- 30.36, 30.37, 30.38. 30.50. 30.51, 30.55. 30.56, and Appendices A. C, D. and E.

3. In S 30.35. the introductory text of paragraph (f)(2) is revised to read as follows:

5 30 35 Financial assurance and recordkeeoina for decommissionino.

(f)

(2) A surety method, insurance, or other guarantee method. These methods guarantee that decommissioning costs will be paid. A surety method A

may be in the form of a surety bond, letter of credit. or line of credit.

parent company guarantee of funds for decommissioning costs based on a financial test may be used if the guarantee and test are as contained in Appendix A to this Part. A parent company guarantee may not be used in combination with other financial methods to satisfy the requirements of this section. For commercial corporations that issue bonds, a guarantee of funds by the applicant or licensee for decommissioning costs based on a financial test may be used if the guarantee and test are as contained in Appendix C to this Part. For commercial companies that do not issue bonds, a guarantee of funds by the applicant or licensee for decommissioning costs may be used if the guarantee and test are as contained in Appendix D to this Part. For non-profit entities. such as colleges, universities, and non-profit hospitals, a guarantee of funds by the applicant or licensee may be used if the guarantee and test are as containea in Appendix E to this Part. A guarantee by the applicant or licensee may not be used in combination with any other findncial methods used to satisfy the requirements of this section or in any situation 23 l

l 1

5:

where the' applicant or licensee has a parent company holding majority control '

.j of the voting stock of the company. Any surety method or insurance used to provide financial assurance for decommi.ssioning must contain the following i l

conditions:

l 4

• * * *

• 1 l

. i

4. New Appendices D and E to Part 30 are added to read as follows:

9 1 .

APPENDIX D TO PART 30 -- CRITERIA RELATING TO USE OF FINANCIAL TESTS l i

AND SELF-GUARANTEE FOR PROVIDING REASONABLE ASSURANCE OF FUNDS F,OR DECOMMISSIONING BY COMMERCIAL COMPANIES THAT HAVE NO OUTSTANDING RATE BONDS. I l

l I. Introduction i

An applicant or licensee may provide reasonable assurance of the availability of funds for decommissioning based on furnishing its own guarantee that funds will be available for decommissioning costs and on a de.Tionstration that the company passes the financial test of Section II of this appendix. The terms of the self-guarantee are in Section III of this appendix. This appendix establishes criteria for passing the financial test for the self-guarantee and establishes the terms for a self-guarantee.

I 24

• II. Financial Test A. To pass the financial test a company must meet the following criteria:

l (1) Tangible net worth greater than $10 million, or at least 10 times the total current decommissioning cost estimate (or the current amount required if certification is used), whichever is greater, for all decommissioning activities for which the company is responsible as self-guaranteeing licensee and as parent-guarantor.

(2) Assets located in the United States amounting to at least 90 percent of total assets or at least 10 times the total current decommissioning cost estimate (or the current amount required if certification is used) for all decommissioning activities for which the company is responsible as self-guaranteeing licensee and as parent-guarantor.

(3) A ratio of cash flow divided by total liabilities greater than 0.15, and a ratio of total liabilities divided by net worth less than 1.5.

B. In addition. to pass the financial test, a company must meet all of the following requirements:

(1) The company's independent certified public accountant must have compared the data used by the company in the financial test, which is required to be derived from the independently audited year end financial statement based on United States generally accepted accounting practices for the latest fiscal year, with the amounts in such financial statement. In connection with that procedure, the licensee shall inform NRC within 90 days of any matters that may cause the auditor to believe that the data specified in the financial 25

_ ____ - - - - - - - --- - - - - - - ~~ ~~ ~

test should be adjusted and that the company no longer passes the test. .  ;

(2)

After the initial financial test, the company must repeat passage of the test within 90 days after the close of each succeeding fiscal year, (3)

If the licensee no longer meets the requirements of paragraph II. A of this appendix, the licensee must send notice to the NRC of intent to establish alternate financial assurance as specified in NRC regulation.s. The notice must be sent by certified mail, return receipt requested, within 90 days after the end of the fiscal year for which the year end financial data show that the licensee no longer meets the financial test requirements. The licensee must provide alternate financial assurance within 120 days after the end of such fiscal year.

III. Company Self-Guarantee The terms of a self-guarantee which an applicant or licensee furnishes must provide that:

A.

The guarantee shall remain in force unless the licensee sends notice of cancellation by certified mail, return receipt requested to the NRC.

Cancellation may not occur until an alternate financial assurance mechanism is in place.

B.

The licensee shall provide alternative financial assurance as specified in the regulations within 90 days following receipt by the NRC of a notice of cancellation of the gLarantee.

C.

The guarantee and financial test provisions must remain in effect until the Commission has terminated the license or until another financial 26

- -~ _ - - - - - - - - - - - _ _ _ _ _

o assurance method acceptable to the Commission has been put in effect by t licensee.

D.

The applicant or licensee must provide to the Commission a written guarantee (a written commitment by a corporate officer) which states t licensee will fund and carry out the required decommissioning activities or, upon issuance of an order by the Commission, the licensee will set up a trust in the amount of the current cost estimates for decommissioning.

APPENDIX E TO PART 30 -- CRITERIA RELATING TO USE AND SELF-GUARANTEE FOR PROVIDING REASONABLE ASS DECOMMISSIONING BY NON-PROFIT COLLEGES UNIVERSITIES, AND

1. Introduction An applicant or licensee may provide reasonable assurance of the availability of funds for decommissioning based on furnishing its own guarantee that funds will be available for decommissioning costs and on a demonstration that the applicant or licensee passes the financial test of The terms of the self-guarantee are in Section Section II of this appendix.

III of this appendix. This appendix establishes criteria for passing the financial test for the self-guarantee and establishes the terms for a self-guarantee.

II. Financial Test A.

For colleges and universities, to pass the financial test a college 27 l

or university must meet either the criteria in Paragraph II, A. (1) or the 1 j

criteria in Paragraph II. A. (2) of this Appendix.

(1)  !

For applicants or licensees that issue bonds, a current rating for i j

its most recent uninsured, uncollateralized, and unencumbered bond issuance of AAA, AA, or A as. issued by Sta.ndard and Poors (S&P) or Aaa, Aa, or A as issued i by Moodys.

(2)

For applicants or licensees that do not issue bonds, unrestricted endowment consisting of assets located in the United States of at least $50 million. .or at least 30 times the total current decomissioning cost estimate  !

(or the current amount required if certification is used), whichever is I greater, for all decommissioning activities for which the college or i

university is responsible as a self-guaranteeing licensee, i i

' B. For hospitals, to pass the financial test a hospital must meet  !

either the criteria in Paragraph II. B. (1) er the criteria in Paragraph II. I B. (2) of this Appendix:  !

(1) For applicants or licensees that issue bonds, a current rating for its most recent. uninsured, uncollateralized, and unencumbered bond issuance of AAA, AA, or A as issued by Standard and Poors (S&P) or Aaa, Aa, or A as issued i by Moodys. .

l (2) For applicants or licensee. that do not issue bonds, all of the  !

following tests must be met (a) (Total Revenues less total expenditures) divided by total revenues must be equal to or greater than .04.

I i (b) Long term debt divided by net fixed assets must be less than or  !

i i 28 l

)

i i

• -- ~. .._, . - - - - , <

. . - . ~ . - .. .-.

l I

l equal to .67. ]

(c) (Current assets and depreciation fund) divided by current liabilities must be. greater than or equal to 2.55.

(d) Operating revenues must be at least 100 times the total current.

decommissioning cost estimate (or the current amount required if certification 1s used) for all decommissioning activities for whicn the hospital is responsible as a self-guaranteeing license, w ,

C. In addition, to pass the financial test, a licensee must meet all of ,

the following requirements: .

(1) The licensee's independent certified public accountant must have-compared the data used by the licensee in the financial test,.which is required to be derived from the independently audited year end financial statements, based on United States generally accepted accounting practices, for the latest fiscal year, with the amounts in such financial statement. In connection with that procedure, the licensee shall inform NRC within 90 days j of any matters coming to the attention of the auditor that cause the auditor i to believe that the data specified in the financial test should be adjusted and that the licensee no longer passes the test.

l (2) After the iriitial financial test, the licensee must repeat passage l:

.i of the test within 90 days after the close of each succeeding fiscal year.

(3) If the licensee no longer meets the requirements of Section I. of l this appendix. the licensee must send notice to the NRC of its intent to -

establish alternate financial assurance as specified in NRC regulations. The I~ notice must be sent by certified mail, return receipt requested, within 90

^

days after the end of the fiscal year for which the year end financial data 29

i )

l 1

l- show that the licensee no' longer meets the financial test requirements. The >

l i

licensee must provide alternate financial assurance within 120 days after the-I end of such fiscal year. I j III. The terms of a self-guarantee whic.h an applicant or licensee l

furnishes must provide that-- -)

l-i A. The guarantee shall remain in force unless the licensee sends notice l

1 C o n1 y oc r n an t at a i assurance mechanism is in place.

B. The licensee shall provide alternative financial assurance ~as j specified in the Commission's regulations within 90 days following receipt by l the Commission of a notice of cancellation of the guarantee.  :

C. The guarantee and financial test provisions must remain in effect  ;

until the Commission has terminated the license or until another financial I assurance method acceptable to the Commission has been put in effect by the l licensee.

1

D. The applicant or licensee must provide to the Comission a written i

i guarantee (a written comnntment by a corporate officer or officer of the i

l institution) which states that the licensee will fund and carry out the  ;

required decommissio'ning activities or. upon issusnce of an order by the Commission, the licensee wili set up and fund a trust in the amount of the current cost estimates for decommissioning.

E. If, at any time, the licensee *s most recent bond issuance ceases to be rated in any. category of "A" or above by either Standard and Poors or 30

Moodys, the licensee shall provide notice in writing of such fact to the Commission within 20 days after publication of the change by the rating service.

PART 40 - DOMESTIC LICENSING OF SOURCE MATERIAL i

5. The authority citation for Part 40 continues to read as follows:

AUTHORITY: Secs. 62. 63, 64, 65. 81, 161. 182. 183. 186. 68 Stat. 932. 933. 935, 948. 953, 954. 955, as amended, secs. 11e(2) 83. 84.

Pub.'L.95-604. 92 Stat. 3033, as amended. 3039. sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2014(e)(2) 2092. 2093. 2094. 2095. 2111, 2113, 2114, 2201. l i

j 2232, 2233, 2236, 2282); sec. 274. Pub. L.86-373. 73 Stat. 688 (42 U.S.C. l 2021): secs. 201 as amended. 202, 206, 88 Stat. 1242 as amended. 1244. 12-46 l (42 U.S.C. 5841. 5842, 5846); sec. 275. 92 Stat. 3021. as amended by Pub. L. I t

97-415. 96 Stat. 2067 (42 U.S.C. 2022).  ;

Section 40.7 also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851). Section 40.31(g) also issued under sec. 122. 68 Stat. 939 l (42 U.S.C. 2152). Section 40.46 also issued under sec.184. 68 Stat. 954. as .

amended (42 U.S.C. 2234). Section 40.71 also issued under sec. 187. 68 Stat. l 955 (42 U.S.C. 2237). l l

6. In 5 40.36 the introductory text of paragraph (e)(2) is revised to

{

read as follows: l l

3 40.36 Financial assurance and recordkeeoina for decorrmissionina.  !

(e) 31 l

)

) -

i (2) A surety method, insurance, or other guarantee method. These <

h methods guarantee that decommissioning costs will be paid. A surety method

! may be in the form of a surety bond, letter of credit, or line'of credit. A t

! parent ccmpany guarantee of. funds for decommissioning costs based on a financial test may be used if the guarantee and test are as contained in l '

Appendix A to Part 30 A parent company guarantee may not be used in i combination with other financial methods to satisfy the requirements of this l 3

I section. For commercial corporations that issue bonds, a guarantee of funds 1 i by the applicant or licensee for decommissioning costs based on a financial i i j test may be used if the guarantee and test are as. contained in Appendix C to j

! Part 30. For commercial companies that do not issue bonds, a guarantee of 1-

} funds by the applicant or licensee for decommissioning costs may be used if )

l; the guarantee and test are as contained in Appendix D to Part 30. For non-i profit entities, such as colleges, universities, and non-profit hospitals, a j guarantee of funds by the applicant or licensee may be used if the guarantee o

j and test are as contained in Appendix E to Part 30. A guarantee by the t

i . applicant or licensee may not be used in combinatian with any other financial j methods used to satisfy the requirements of this section or in any situation i '

where the applicant or licensee has a parent company holding majority control i

j of the voting stock of the company. Any surety method or insurance used to i

provide financial assurance for decommissioning must contain the following i

i conditions:

4 4

B 32 lb __ _ - - _ _ _ _ _ _ _ _ _ _ _ _ _ . ..- ._. - _

PART 50 - DOMESTIC LICENSING 0F PRODUCTION AND UTILIZATION FACILITIES

7. The authority citation for Part 50 continues to read as follows:

AUTHORITY: Secs. 102, 103, 104. 105, 161. 182. 183. 186, 189, 68 Stat.

936, 937. 938. 948, 953, 954, 955, 956, as amended, sec. 234, 83 Stat. 1244, as amended (42 U.S.C. 2132, 2133, 2134, 2135, 2201, 2232, 2233, 2236, 2239, 2282): secs. 201, as amended. 202, 206, 88 Stat. 1242, as amended. 1244. 1246 (42 U.S.C. 5841. 5842, 5846).

Section 50.7 also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951 (42-U.S.C. 5851). Section 50.10 also issued under secs. 101, 185. 68 Stat.

936, 955, as amended (42 U.S.C. 2131. 2235): sec. 102. Pub. L.91-190. 83 Stat. 853 (42 U.S.C. 4332). Sections 50.13, 50.54(dd), and 50.103 also issued under sec. 108. 68 Stat. 939, as amended (42 U.S.C. 2138). Sections 50.23, 50.35. 50.55, and 50.56 also issued under sec. 185, 68 Stat. 955 (42 U.S.C.

2235). Sections 50.33a, 50.55a and Appendix 0 also issued under sec. 102.

Pub. L.91-190. 83 Stat. 853 (42 U.S.C. 4332). Sections 50.34 and 50.54 also issued under sec. 204, 88 Stat. 1245 (42 U.S.C. 5844). Sections 50.58, 50.91.

and 50.92 also issued under Pub. L.97-415. 96 Stat. 2073 (42 U.S.C. 2239).

Section 50.78 also issued under sec. 122. 68 Stat. 939 (42 U.S.C. 2152).

Sections 50.80 - 50.81 also issued under sec. 184. 68 Stat. 954. as amended (42 U.S.C. 2234). Appendix F also issued under sec. 187. 68 Stat. 955 (42 U.S.C 2237).

8. In S 50,75 the introductory text of paragraph (e)(2)(iii) is revised )

to read as follows:

I 33

6 50.75 Reoortino and recordkeeoina for decommissionina olannina. '

j * *. * * *

-(e) i (2) * *

• i  !

.(iii) A surety method, insurance, or other guarantee method. These

~

methods guarantee that decommissioning costs will be paid. A surety method

may be in the form of a surety bond, letter of credit, or line of credit. A

! parent company guarantee of funds for decommissioning cost.s based on a 4

financial test may be.used if the guarantee and test are as contained in

Appendix A to Part 30. A parent company guarantee may not be used in l'

, combination with other financial methods to satisfy the requirements of this l section. For commercial corporations that issue bonds, a guarantee of funds -  ;

1 3

, by the applicant or. licensee for decommissioning costs based on a financial. I

[ test may.be used if the guarantee and test are as contained in Appendix C to  ;

i l

l Part 30. For commercial companies that do not issue bonds, a guarantee of l

?

/

l funds by the applicant or licensee for decommissioning costs may be used if the guarantee and test are as contained in Appendix D to Part 30. For non-

{

I i

profit. entities, such as colleges, universities, and non-profit hospitals, a guarantee of funds by the applicant or licensee may be used if the guarantee and_ test are as contained in Appendix E to Part 30. A guarantee by the j applicant or licensee may not be used in combination with any other financial a

{ methods used to satisfy the requirements of this section or in any situation where the applicant or licensee has a parent company holding majority control of the voting stock of the company. ' Any surety method or insurance used to provide financial assurance for decommiss.ioning must contain the following conditions:

34

. . . . .. .. - . - . . . . - - . - . . . - . - ~ ~ . . ,~ - - .. . . . . . . . . . . . - > - . -

I e

.PART 70 - DOMESTIC.LICENSIhG OF SPECIAL NUCLEAR MATERIAL

9. The authority citation for Part 70 continues to read as follows:

AUTHORITY: Secs. 51, 53, 161, 182. 183. 68 Stat. 929, 930, 948. 953, 954, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2071. 2073.

l 2201. 2232. 2233, 2282); secs. 201, as amended. 202. 204, 206, 88 Stat. 1242, as amended. 1244, 1245, 1246 (42 U.S.C. 5841. 5842, 5845, 5846).

Sections 70.1(c) and 70.20a(b) also issued under secs. 135. 141. Pub. L.97-425. 96 Stat. 2232, 2241 (42 U.S.C. 10155. 10161). Section 70.7 also l

issued under' Pub. L. 95 601, sec. 10. 92 Stat. 2951 (42 U.S.C. 5851).

Section 70.21(g)'also issued under sec. 122, 68 Stat. 939 (42 U.S.C. 2152).

Section 70.31 also issued under sec. 57d. Pub. L.93-377. 88 Stat. 475 (42 U.S.C. 2077). Sections 70.36 and 70.44 also issued under sec. 184, 68 Stat.

954. as amended (42 U.S.C. 2234). Section 70.61 also issued under secs. 186,

! 187. 68 Stat. 955 (42 U.S.C. 2236, 2237). Section 70.62 also issued under sec. 108, 68 Stat. 939, as amended (42 U.S.C. 2138).

1

-10. In S 70.25 the introductory text of paragraph (f)(2) is revised to

. read as follows:

6 70.25 Financial assurance and recordkeeoina for decommissionina.

(f) * * *

(2) . A surety method insurance, or other guarantee method. These  ;

methods guarantee that decommissioning costs will be paid. A surety method

{

35

{

e 1.

~ .. - . - . . ... - . -.. - - . . - . - . _._ - ..-.. - - . - - . - . . - . - . . - . .

e may be in the form of a surety bond, letter of credit, or line of credit. A

. parent company guarantee of funds for decommissioning costs based ori a financial test may be used if the guarantee and test are as contained in P

Appendix'A to Part 30. A parent company guarantee may not be used in combination with other financial methods to sattsfy the requirements of this section. For. commercial corporations that issue bonds, a guarantee of funds by the applicant or licensee for decommissioning costs based on a financial test may be used if the guarantee and test are as contained in Appendix C to Part 30. For commercial companies that do not issue bonds, a guarantee of funds by the applicant or licensee for decommissioning costs may be used li the guarantee and test are as contained in Appendix D to Part 30. For non-

, profit entities, such as colleges, universities, and non 'rofit hospitals 'a.

guarantee of funds by the applicant or licensee may be used if the guarantee and test are as contained in Appendix E to Part 30. A guarantee by the 1 applicant or licensee may not be used in combination with any other financial u methods used to satisfy the requirements of this section or in any situation where the applicant or licensee has a. parent company holding majority control  ;

of the voting stock of the company. Any surety method or insurance used to provide financial assurance for decommissioning must contain the following  ;

conditions:

i

• I 36

~ -~~

PART 72 - LICENSING REQUIREMENTS FOR THE IN NUCLEAR FUEL AND HIGH-LEVEL RADI0 ACTIVE WASTE I

l 11.

The authority citation for Part 72 continues to read as follows:

f Secs. 51, 53, 57, 62, 63, 65. 69, 81, 161, 182. 183, 184, AUTHORITY:

186, 187, 189. 68 Stat. 929, 930, 932. 933. 934, 935,092, 948, 953, 954, 95 amended, sec. 234, 83 Stat. 444, as amended (42 sec. U.S.C. 2071, 2073 2093, 2095, 2099. 2111. 2201, 2232, 2233. 2234, 2236, 2237, 2238, 22 sec. 201, as 274. Pub. L.86-373. 73 Stat. 688, as amended (42 U.S.C. 2021):

1244, 1246 (42 U.S.C. 5841, 202. 206, 88 Stat. 1242, as amended.

amended.

Pub. L.95-601, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851); sec. 5842. 5846): Secs. 131, 132. 133. 135.

102, Pub. L.91-190. 83 Stat, 853 (42 U.S.C. 4332):

137,141 Pub. L.97-425. 96 Stat. 2229, _'230, 2232, 2241, sec.148, P 100-203, 101 Stat. 1330-235 (42 U.S.C. 10151, 10152. 10153, 10155, 10161, 10168).

Section 72.44(g) also issued under secs.142(b) and 148(c), (d) Pub.

100-203, 101 Stat. 1330-232. 1330-236 (42 U.S.C. 10162(b), 10168(c)

Section 72.46 also issued under sec. 189. 68 Stat. 955 (42 U.S.C. 2239 Section 72.96(d) alsc 134. Pub. L.97-425, 96 Stat. 2230 (42 U.S.C. 10154).

issued under sec. 145(g), Pub. L. 100-203, 101 Stat. 1330-235 (42 U.S.C 2(2), 2(15). 2(19), 117(a),

10165(g)). Subpart J also issued under secs. 141(h), Pub. L.97-425, 96 Stat. 2202. 2203, 2204, 2222, 2244 (42 U.S.C Subparts K and L are also issued under sec. 133, 10101, 10137(a). 10161(h)).

98 Stat. 2230 (42 U.S.C. 10153) and sec. 218(a), 96 Stat. 2752 (42 U.S 10198).

37

PART 72 - LICENSING REQUIREMENTS FOR THE INDEPENDENT STORAGE OF SPENT NUCLEAR FUEL AND HIGH-LEVEL RADI0 ACTIVE WASTE

11. The authority citation for Part 72 continues to read as follows:

AUTHORITY: Secs. 51, 53. 57, 62. 63, 65, 69. 81, 161. 182, 183, 184, 186, 187, 189. 68 Stat. 929, 930, 932, 933, 934, 935, 948. 953, 954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2071. 2073, 2077, 2092.

2093, 2095, 2099, 2111, 2201. 2232, 2233, 2234 2236, 2237, 2238, 2282): sec. 274, Pub. L.86-373, 73 Stat. 688, as amended (42 U.S.C. 2021): sec. 201, as amended. 202, 206, 88 Stat. 1242, as amended. 1244. 1246 (42 U.S.C. 5841.

5842, 5846): Pub. L.95-601. sec.10, 92 Stat. 2951 (42 U.S.C. 5851); sec. 102, Pub. L.91-190, 83 Stat. 853 (42 U.S.C. 4332): Secs.-131, 132, 133, 135, 137, 141, Pub. L.97-425, 96 Stat. 2229, 2230, 2232, 2241, sec. 148, Pub. L.

100-203, 101 Stat. 1330-235 (42 U.S.C. 10151, 10152, 10153. 10155, 10157, 10161. 10168).

Section 72.44(g) also issued under secs. 142(b) and 148(c). (d), Pub. L.

100-203. 101 Stat. 1330-232. 1330-236 (42 U.S.C. 10162(b), 10168(c). (d)). ,

Section 72.46 also issued under sec. 189, 68 Stat. 955 (42 U.S.C. 2239); sec. 134. Pub. L.97-425. 96 Stat. 2230 (42 U.S.C. 10354). Section 72.96(d) also issued under sec. 145(g) Pub. L. 100-203, 101 Stat. 1330-235 (42 U.S.C.

10165(g)). Subpart J also issued under secs. 2(2). 2(15), 2(19). 117(a),

141(h). Pub. L.97-425. 96 Stat. 2202, 2203, 2204, 2222, 2244 (42 U.S.C.

10101. 10137(a), 10161(h)). Subparts K and L are also issued under sec. 133, 98 Stat. 2230 (42 U.S.C. 10153) and sec. 218(a). 96 Stat. 2252 (42 U.3.C.

10198).

I f 37 l'

I' 1 -

12. In S 72.30 the introductory text of paragraph (c)(2) is revised to read as follows:

6 72.30 Decommissionino Plannina includina financino and recordkeeoina, (c) * *-

• i (2) A surety nethod, insurance, or other guarantee method. These methods guarantee that decommissi6ning costs will be paid A surety method may be in the form of a surety bond, letter of credit, or line of credit. A parent company guarantee of funds for decommissioning costs based on a financial test may be used if the guarantee and test are as contained in Appendix A to Part 30. A parent company guarantee may not be used in combination with other financial methods to satisfy the requirements of this.

section. For commercial corporations that issue bonds, a guarantee of funds by the applicant or licensee for decommissioning costs based on a financial test may be used if the guarantee and test are as contained in Appendix C to Part 30. For commercial corporations that do not issue bonds, a guarcntee of funds by the applicant or licensee for decommissioning costs may be used if the guarantee and test are as contained in Appendix D to Part 30. A guarantee by the applicant or licensee may not be used in combination with any other financial methods used to satisfy the requirements of.this section or in any situation where the applicant or licensee has a parent company holding 38 4

L 1

l majority control of the voting stock of the company. Any surety method or insurance used to provide financial assurance for decommissioning must contain the following conditions:

Dated at Rockville Maryland, this 8 day of April, 1997.

For the Nuclear Regulatory Commission.

John C./ le.

Secre of the Commission.

5 i

f I

l i

i k-

^

39