Current through Register Vol. 48, No. 12, March 22, 2024
a) The
proposer who is selected to be contractor shall establish that it has the
financial resources necessary to design, develop, construct, operate and close
the low-level radioactive waste disposal facility. In addition, the proposer
must have resources sufficient to meet the contractor's obligations regarding
closure and post-closure (32 Ill. Adm. Code 601). Further, because it is likely
that the low-level waste disposal facility will receive mixed waste (i.e.,
waste that has both radioactive and hazardous components), when evaluating the
financial integrity of the proposers, the Agency shall establish whether the
firm is capable of meeting the financial requirements of 35 Ill. Adm. Code 724.
Specifically, the Agency shall negotiate a contract only with a proposer that
is capable of meeting either of the following two financial tests:
1) Test One: The proposer must have:
A) Two of the following three ratios:
i) a ratio of total liabilities to net worth
less than 2.0;
ii) a ratio of the
sum of net income plus depreciation, depletion and amortization to total
liabilities greater than 0.1;
iii)
a ratio of current assets to current liabilities greater than
1.5; and
B) Net working capital and
tangible net worth each at least six times the sum of the closure and
post-closure costs estimates contained in the proposal; and
C) Tangible net worth of at least $10
million; and
D) Assets in the
United States amounting to at least 90 percent of its total assets or at least
six times the sum of the closure and post-closure estimates contained in the
proposal.
2) Test Two:
The proposer must have:
A) A current rating
for its most recent bond issuance of AAA, AA, A or BBB as issued by Standard
and Poor or Aaa, Aa, A or Baa as issued by Moody; and
B) Tangible net worth at least six times the
sum of the closure and post-closure cost estimates contained in the proposal;
and
C) Tangible net worth of at
least $10 million; and
D) Assets
located in the United States amounting to at least 90 percent of its total
assets or at least six times the sum of the closure and post-closure cost
estimates contained in the proposal.
b) When evaluating whether a proposer is
capable of satisfying the financial requirements of 32 Ill. Adm. Code 601, the
Agency shall consider:
1) The proposer's
current assets and liabilities;
2)
The proposer's short-term and long-term debt;
3) The proposer's credit rating;
4) The most recent Form 10K and all Form 10Qs
since the last 10K that the proposer (or if more than one firm is proposing,
all proposers) has filed with the United States Securities and Exchange
Commission;
5) If proposer has not
filed a Form 10K with the United States Securities and Exchange Commission,
audited financial statements for the past three fiscal years and quarterly
financial reports for the past two years;
6) Court decisions, decrees or agreements
that have been issued or that are pending and that could adversely affect the
financial well-being of the company;
7) Whether the proposer has ever initiated
bankruptcy proceedings, either voluntary or involuntary, as well as the time
and performance of the proposer since the proceedings; and
8) Any additional information provided by
proposer.
c) When
determining whether a proposer is capable of satisfying the financial
requirements of 32 Ill. Adm. Code 601, the Agency shall apply the accounting
standards of the Financial Accounting Standards Board (FASB) (see
www.fasb.org).
