Kansas Administrative Regulations
Agency 28 - DEPARTMENT OF HEALTH AND ENVIRONMENT
Article 35 - RADIATION
Section 28-35-180b - Financial assurance for decommissioning
Universal Citation: KS Admin Regs 28-35-180b
Current through Register Vol. 43, No. 52, December 26, 2024
(a) Each applicant for a specific license authorizing the possession and use of unsealed radioactive material with a half-life greater than 120 days and in quantities exceeding 105 times the applicable quantities specified in K.A.R. 28-35-201 shall submit a decommissioning funding plan as described in subsection (e) of this regulation. Each applicant shall also submit the decommissioning funding plan if a combination of isotopes is involved and if R divided by 105 is greater than one, where R is defined here as the sum of the ratios of the quantity of each isotope to the applicable value specified in K.A.R. 28-35-201.
(b) Each applicant for a specific license authorizing the possession and use of radioactive material with a half-life greater than 120 days and in quantities specified in table I shall submit either of the following:
(1) A
decommissioning funding plan as described in subsection (e); or
(2) a certification that financial assurance
for decommissioning has been provided in the amount prescribed by table I,
using one of the methods described in subsection (f). The certification may
state that the appropriate assurance is to be obtained after the application
has been approved and the license has been issued, but before the receipt of
licensed material. If the applicant defers execution of the financial
instrument required under subsection (f) until after the license has been
issued, a signed original of the financial instrument shall be submitted to the
department before the applicant receives the licensed material. If the
applicant does not defer execution of the financial instrument required under
subsection (f), the applicant shall submit to the department, as part of the
certification, a signed original of the financial instrument.
(c) Each holder of a specific license that is a type specified in subsection (a) or (b) shall provide financial assurance for decommissioning in accordance with the following requirements:
(1) Each holder of a specific
license that is a type specified in subsection (a) shall submit a
decommissioning funding plan as specified in subsection (e) or a certification
of financial assurance for decommissioning in an amount equal to at least
$1,125,000.00. Each licensee shall submit the plan or certification to the
department in accordance with the criteria specified in this regulation. If the
licensee submits a certification of financial assurance rather than a
decommissioning funding plan, the licensee shall include a decommissioning
funding plan in any application for license renewal.
(2) Each holder of a specific license that is
a type specified in subsection (b) shall submit a decommissioning funding plan
as specified in subsection (e) or a certification of financial assurance for
decommissioning. Each licensee shall submit the plan or certification to the
department, in accordance with the requirements specified in this
regulation.
(d) The amounts of financial assurance required for decommissioning, by quantity of material, shall be those specified in table I.
Table I
Financial assurance for decommissioning by quantity of material
| If the possession limit is greater than 104 but less than or equal to 105 times the applicable quantities specified in K.A.R. 28-35-201, in unsealed form | $1,125,000.00 |
| For a combination of isotopes, in unsealed form, if R, as defined in subsection (a), divided by 104 is greater than one, but R divided by 105 is equal to | $1,125,000.00 |
| If the possession limit is greater than 103 but less than or equal to 104 times the applicable quantities specified in K.A.R. 28-35-201, in unsealed form | $225,000.00 |
| For a combination of isotopes, in unsealed form, if R, as defined in subsection (a), divided by 103 is greater than one, but R divided by 104 is less than or equal to one............................................................. | $225,000.00 |
| If the possession limit is greater than 1010 times the applicable quantities specified in K.A.R. 28-35-201, in sealed sources or foils............................................ | $113,000.00 |
| For a combination of isotopes, in sealed sources or foils, if R, as defined in subsection (a), divided by 1010 is greater than one............................................... | $113,000.00 |
(e) Each decommissioning funding plan shall contain the following:
(1) A cost estimate for decommissioning in an
amount including the following:
(A) The cost
of an independent contractor to perform all decommissioning
activities;
(B) the cost of meeting
the requirements for unrestricted use specified in
K.A.R.
28-35-205. However, if the applicant or
licensee can demonstrate the ability to meet the provisions of
K.A.R.
28-35-205a, the cost estimate may be based on
meeting the requirements in
K.A.R.
28-35-205a;
(C) the volume of on-site subsurface material
containing residual radioactivity that will require remediation to meet the
requirements for license termination; and
(D) a contingency factor;
(2) identification of and
justification for using the key assumptions contained in the decommissioning
cost estimate;
(3) a description of
the method of ensuring funds for decommissioning from subsection (f), including
means for adjusting cost estimates and associated funding levels periodically
over the life of the facility;
(4)
a certification by the licensee that financial assurance for decommissioning
has been provided in the amount of the cost estimate for
decommissioning;
(5) a signed
original of the financial instrument obtained to satisfy the requirements in
subsection (f); and
(6) at the time
of license renewal and at intervals not longer than three years, the
decommissioning funding plan with adjustments necessary to account for changes
in costs and the extent of contamination. The amount of financial assurance
shall not be reduced without first obtaining the approval of an updated
decommissioning funding plan. The decommissioning funding plan shall update the
information submitted with the original or prior approved plan and shall
specifically consider the effect of the following events on decommissioning
costs:
(A) Spills of radioactive material
producing additional residual radioactivity in on-site subsurface
material;
(B) waste inventory
exceeding the amount previously estimated;
(C) waste disposal costs exceeding the amount
previously estimated;
(D) facility
modifications;
(E) changes in
authorized possession limits;
(F)
actual remediation costs exceeding the previous cost estimate;
(G) on-site disposal; and
(H) use of a settling pond.
(f) Each licensee shall provide financial assurance for decommissioning by one or more of the following methods:
(1) Prepayment. "Prepayment" shall
mean the deposit of cash or liquid assets before the start of operation into a
trust account acceptable to the secretary that is segregated from the
licensee's assets and outside of the licensee's administrative control. The
deposit shall consist of an amount that is sufficient to pay decommissioning
costs. The adequacy of the trust funds shall be based on an assumed annual rate
of return of one percent on the funds deposited into the trust.
(2) A surety instrument, insurance policy, or
other guarantee method. The licensee may use a surety instrument, insurance
policy, or other similar means to guarantee that decommissioning costs will be
paid. A surety instrument may be in the form of a surety bond, letter of
credit, or line of credit. A parent company's guarantee of funds for
decommissioning costs based on a financial test may be used if the guarantee
and test meet the requirements of
K.A.R.
28-35-203. A parent company's guarantee shall
not be used in combination with other financial methods to meet the
requirements in this regulation. 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 meet the requirements of
K.A.R.
28-35-203. A guarantee by the applicant or
licensee shall not be used in combination with any other financial methods to
meet the requirements in this regulation or in any situation in which a parent
company of the applicant or licensee holds majority control of the voting stock
of the company. Each surety instrument or insurance policy used to provide
financial assurance for decommissioning shall contain the following
requirements:
(A) The surety instrument or
insurance policy shall be open-ended or, if written for a specified term, shall
be renewed automatically, unless 90 days or more before the renewal date, the
insurer notifies the department, the beneficiary, and the licensee of the
insurer's intention not to renew. The surety instrument or insurance policy
shall also provide that the full face amount will be paid to the beneficiary
automatically before the expiration without proof of forfeiture if the licensee
fails to provide a replacement that meets the requirements of this regulation
within 30 days after receipt of notification of cancellation.
(B) The surety instrument or insurance policy
shall be payable to an approved trust established for decommissioning costs.
The trustee may include an appropriate state or federal agency or an entity
that has the authority to act as a trustee and whose trust operations are
regulated and examined by a federal or state agency.
(C) The surety instrument or insurance policy
shall remain in effect until the license is terminated by the
department.
(3) External
sinking fund. A licensee may provide financial assurance for decommissioning
through an external sinking fund in which deposits are made at least annually,
coupled with a surety instrument or insurance policy. The value of the surety
instrument or insurance policy may decrease by the amount accumulated in the
sinking fund. "External sinking fund" shall mean a fund that meets both of the
following conditions:
(A) Is established and
maintained by setting aside funds periodically in an account segregated from
the licensee's assets and outside the licensee's administrative control;
and
(B) contains a total amount of
funds sufficient to pay the decommissioning costs when termination of the
operation is expected. An external sinking fund may be in the form of a trust,
escrow account, government fund, certificate of deposit, or deposit of
government securities. The surety or insurance provisions shall meet the
requirements specified in this subsection.
(4) Statement of intent. Any federal, state,
or local government licensee may submit a statement of intent containing a cost
estimate for decommissioning or an amount based on table I of this regulation
and indicating that funds for decommissioning will be obtained when
necessary.
(g) Each person licensed under subsections (a) through (f) shall keep records of all information that is relevant to the safe and effective decommissioning of the facility. The records shall be kept in an identified location until the license is terminated by the department. If records of relevant information are kept for other purposes, the licensee may refer to these records and the location of these records within the records kept pursuant to this subsection.
(h) Each licensee shall maintain decommissioning records, which shall consist of the following information:
(1) Records of spills or other unusual
occurrences involving the spread of contamination in and around the facility,
equipment, or site. These records may be limited to records of instances in
which contamination remains after any cleanup procedures or when there is
reasonable likelihood that contaminants could have spread to inaccessible
areas. These records shall include any known information identifying the
nuclides, quantities, forms, and concentrations involved in the spill or
occurrence;
(2) drawings of the
following, both as originally built and, if applicable, as modified:
(A) The structures and equipment in
restricted areas where radioactive materials are used or stored, or both;
and
(B) the locations of possible
inaccessible contamination. If the licensee refers to required drawings other
than those kept pursuant to this regulation, the licensee shall not be required
to index each relevant document individually. If drawings are not available,
the licensee shall substitute available information concerning these areas and
locations;
(3) a list of
the following information, which shall be contained in a single document and
updated every two years:
(A) All areas
designated and formerly designated as restricted areas;
(B) all areas outside of restricted areas
that require the documentation specified in this subsection;
(C) all areas outside of restricted areas
where current and previous wastes have been buried and documented as specified
in
K.A.R.
28-35-227j; and
(D) all areas outside of restricted areas
that contain material so that, if the license expired, the licensee would be
required either to decontaminate the area to unrestricted release levels or to
apply for approval for disposal as specified in
K.A.R.
28-35-225a.
Those areas containing sealed sources only shall not be included in the list if the sources have not leaked, no contamination remains in the area after any leak, or the area contains only radioactive materials having half-lives of less than 65 days; and
(4) the following records:
(A) Records of the cost estimate performed
for the decommissioning funding plan or records of the amount certified for
decommissioning; and
(B) if either
a funding plan or certification is used, records of the funding method used for
assuring funds.
(i) Each applicant for a specific license shall make available a long-term care fund necessary to provide for the long-term surveillance and care of the radioactive material or waste. Each applicant for any of the following types of specific licenses shall establish the long-term care fund before the issuance of the license or before the termination of the license if the applicant chooses, by providing a surety instrument in lieu of a long-term care fund:
(1) Waste-handling licenses;
(2) source material milling licenses;
and
(3) licenses for any facilities
formerly licensed by the U.S. atomic energy commission or the nuclear
regulatory commission (NRC), if required.
(j)
(1)
Each applicant shall agree to notify the department, in writing, immediately
following the filing of a voluntary or involuntary petition for bankruptcy
under any chapter of title 11, bankruptcy, of the United States code by or
against any of the following:
(A) The
licensee;
(B) any person
controlling the licensee or listing the license or licensee as property of the
estate; or
(C) any affiliate of the
licensee.
(2) The
bankruptcy notification shall indicate the following:
(A) The name of the bankruptcy court in which
the petition for bankruptcy was filed; and
(B) the date on which the petition was
filed.
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