ML15041A195
| ML15041A195 | |
| Person / Time | |
|---|---|
| Site: | Rensselaer Polytechnic Institute |
| Issue date: | 01/23/2015 |
| From: | Gregg V C 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 OFFICERU.S. Nuclear Regulatory Commission. '5 *ATTN: Document Control DeskWashington, DC 20555I am the Chief Financial Officer of Rensselaer Polytechnic Institute, a nonprofit university. Thisletter is in support of this firm's use of the self-guarantee financial test to demonstrate financialassurance, as specified in 10 CFR Part 30. This firm has no parent company holding majority controlof its voting stock.This firm guarantees, through the self-guarantee submitted to demonstrate compliance under 10 CFRPart 30, the decommissioning of the following facilities owned or operated by this firm. The currentcost estimates or certified amounts for decommissioning, so guaranteed, are shown for each facility:Name of Facility License Number Location of Facility Current Cost EstimatesRensselaer Polytechnic CX-22 Schenectady, NY $450,000Institute Reactor CriticalFacilityI hereby certify that Rensselaer Polytechnic Institute is currently a going concern, and that itpossesses positive tangible net worth in the amount of $471,133,000 as of June 30, 2014. This isderived from this firm's independently audited, year-end financial statements and footnotes for thelatest 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 forthe latest fiscal year.This firm satisfies the following self-guarantee test: Rensselaer Polytechnic Institute current bondrating for its most recent uninsured, uncollateralized, and unencumbered bond issuance is A as issuedby Standard and Poors. I hereby certify that the content of this letter is true and correct to the best ofmy knowledge.ice President of Finance and Chief Financial OfficeRensselaer Polytechnic InstituteJanuary 23, 2015Rensselaer Polytechnic Institute110 8th Street I Troy, NY 12180.3590 1 Troy Bldg 5th FloorPhone (518) 276-6426 I Fax (518) 276-8200 SELF-GUARANTEEGuarantee made this January 23, 2015 by Rensselaer Polytechnic Institute, a nonprofit universityorganized 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.RecitalsThe 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 EnergyReorganization Act of 1974. NRC has promulgated regulations in title 10, Chapter I of the Code ofFederal Regulations, Part 30, which require that a holder of, or an applicant for, a materials licenseissued pursuant to 10 CFR Part 30 provide assurance that funds will be available when needed forrequired decommissioning activities.The self-guarantee is issued to provide financial assurance for decommissioning activities for theRensselaer 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 CFRPart 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 agreesto comply with all notification requirements as specified in 10 CFR Part 30 and Appendix E to 10CFR Part 30.The guarantor meets the following self-guarantee test:(a) A current rating for its most recent uninsured, uncollateralized, and unencumbered bondissuance 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 30for decommissioning of the facilities identified above.7. Pursuant to the guarantor's authority to enter into this guarantee, the guarantor guarantees toNRC 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 currentcost estimates for these activities.
- 8. The guarantor agrees to submit revised financial statements, financial test data, and anauditor's special report and reconciling schedule annually within 90 days of the close of its fiscalyear.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 theend of the fiscal year, by certified mail, notice to NRC that it intends to provide alternative financialassurance as specified in 10 CFR Part 30. Within 120 days after the end of the fiscal year, theguarantor shall establish such financial assurance.10. The guarantor also agrees to notify the beneficiary promptly if the ownership of the licensedactivity is transferred, and to maintain this guarantee until the new licensee provides alternativefinancial 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 aself-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 andseverally under this guarantee notwithstanding any or all of the following: amendment ormodification of the license or NRC-approved decommissioning funding plan for that facility, theextension or reduction of the time of performance of required activities, or any other modification oralteration 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 thepreviously listed facilities, except that the guarantor may cancel this self-guarantee by sending noticeby certified mail to NRC, such cancellation to become effective not before an alternative financialassurance mechanism has been put in place by the guarantor.15. The guarantor agrees that if it, as licensee, fails to provide alternative financial assurance asspecified in 10 CFR Part 30, as applicable, and obtain written approval of such assurance from NRCwithin 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. Theguarantor also expressly waives notice of amendments or modifications of the decommissioningrequirements.
- 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 whichthis self-guarantee is in effect.18. The guarantor agrees that if, at any time before termination of this self-guarantee, its mostrecent bond issuance ceases to be rated in the category of"A" or above by either Standard & Poor'sor Moody's, it shall provide notice in writing of such fact to NRC within 20 days after publication ofthe 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 InstituteS Finance and Chief FinancialyrSignature of witness or notary:.