Current through Register Vol. 47, No. 52, December 29, 2023
A licensee may provide assurance of the availability of funds
for reclaiming based on furnishing its own guarantee that funds will be
available for reclaiming costs, provided that the licensee can demonstrate that
it meets the applicable financial tests identified in this Section. For
commercial corporations that issue bonds, a guarantee of funds may be used if
the licensee meets the tests as specified in subsection (a) of this Section.
For commercial corporations that do not issue bonds, a guarantee of funds may
be used if the licensee meets the tests as specified in subsection (b) of this
Section. For hospitals, a guarantee of funds may be used if the licensee meets
the tests as specified in subsection (c) of this Section. A guarantee by the
licensee may not be used in any situation where the licensee has a parent
company holding majority control of the voting stock of the company.
a) For commercial companies that issue bonds,
to pass the financial test, the company shall demonstrate it meets all of the
following criteria:
1) Tangible net worth at
least 10 times the total current reclaiming cost estimate for all
decommissioning activities for which the company is responsible under a parent
company guarantee, a self-guarantee or a commitment to another regulatory
agency (e.g., USEPA).
2) Assets
located in the United States amounting to at least 90 percent of total assets
or at least 10 times the total current reclaiming cost estimate for all
decommissioning activities for which the company is responsible under a parent
company guarantee, a self-guarantee or a commitment to another regulatory
agency (e.g., USEPA).
3) A current
rating for its most recent uninsured, uncollateralized and unencumbered bond
issuance of AAA, AA or A as issued by Standard and Poor's, or Aaa, Aa or A as
issued by Moody's.
b)
For commercial companies that do not issue bonds, to pass the financial test,
the company shall demonstrate it meets all of the following criteria:
1) Tangible net worth greater than $10
million, or at least 10 times the totalcurrent reclaiming cost estimate,
whichever is greater, for all decommissioning activities for which the company
is responsible under a parent company guarantee, a self-guarantee or a
commitment to another regulatory agency (e.g., USEPA).
2) Assets located in the United States
amounting to at least 90 percent of total assets or at least 10 times the total
current reclaiming cost estimate for all decommissioning activities for which
the company is responsible under a parent company guarantee, a self-guarantee
or a commitment to another regulatory agency (e.g., USEPA).
3) The (sum of net income plus depreciation,
depletion and amortization) divided by total liabilities shall be greater than
0.15 and total liabilities divided by net worth shall be less than
1.5.
c) For hospitals to pass the financial test,
a hospital shall meet either the criteria in subsection (c)(1) or (2) of this
Section:
1) For hospitals 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 Poor's, or Aaa, Aa or A
as issued by Moody's.
2) For
hospitals that do not issue bonds, all of the following tests shall be met:
A) (Total revenues less total expenditures)
divided by total revenues shall be equal to or greater than 0.04.
B) Long term debt divided by net fixed assets
shall be less than or equal to 0.67.
C) (Current assets and depreciation fund)
divided by current liabilities shall be equal to or greater than
2.55.
D) Operating revenues shall
be at least 100 times the total current reclaiming cost estimate for all
reclaiming activities for which the hospital is responsible under a parent
company guarantee, a self-guarantee or a commitment to another regulatory
agency (e.g., USEPA).
