A. The applicant is
qualified by reason of training and experience to use the material in question
for the purpose requested in accordance with this rule in such a manner as to
minimize danger to public health and safety or property;
B. The applicant's proposed equipment,
facilities, and procedures are adequate to minimize danger to public health and
safety or property;
C. The issuance
of the license will not be inimical to the health and safety of the public; and
D. The applicant satisfies any
applicable special requirements in C.9, C.10. or C.11. and Part E, Part G, and
Part K of this rule.
E.
Environmental report, commencement of construction. In the case of an
application for a license to receive and possess radioactive material for
commercial waste disposal by land burial, source material milling, or for the
conduct of any other activity which the Agency determines will significantly
affect the quality of the environment, the Agency, before commencement of
construction of the plant or facility in which the activity will be conducted,
has concluded, after weighing the environmental, economic, technical and other
benefits against environmental costs and considering available alternatives,
that the action called for is the issuance of the proposed license, with any
appropriate conditions to protect environmental values. Commencement of
construction prior to such conclusion shall be grounds for denial of a license
to receive and possess radioactive material in such plant or facility. As used
in this paragraph the term "commencement of construction" means any clearing of
land, excavation, or other substantial action that would adversely affect the
environment of a site. The term does not mean site exploration, necessary roads
for site exploration, borings to determine foundation conditions, or other
pre-construction monitoring or testing to establish background information
related to the suitability of the site or the protection of environmental
values.
F. Financial surety for
decommissioning, recovery or site reclamation.
(1) Each applicant for a specific license
authorizing the possession and use of special nuclear material, source
material, or unsealed radioactive material in quantities and amounts in excess
of those indicated in Table F.1 shall submit a decommissioning funding plan, as
described in paragraph (4) of this section, in the event of planned or
unplanned decommissioning, recovery, or site reclamation. The decommissioning
funding plan must also be submitted when a combination of isotopes is involved
if R divided by 105 is greater than 1 (unity rule), where R is defined here as
the sum of the ratios of quantity of each isotope to the applicable value in
Part C, Appendix E.
Table F.1
|
Type
|
Exceeding
|
|
Special Nuclear Material
|
105 times Part C, App.
E
|
|
Source Material
|
100 µCi in readily dispersible form
|
|
Radioactive Material
|
Half-life greater than 120 days and
105 times Part C, App. E
|
(2) Each applicant for or holder of a
specific license authorizing possession and use of special nuclear material,
source material, or radioactive material (for sealed sources or plated foils of
half-life greater than 120 days and in quantities exceeding
1012 times the applicable quantities set forth in
Appendix E of Part C, or when a combination of isotopes is involved if R, as
defined in C.8.F(1), divided by 1012 is greater than
1) in excess of those indicated in Table F. 2) shall either:
(a) Submit a decommissioning funding plan as
described in paragraph (4) of this section; or
(b) Submit a certification that financial
assurance for decommissioning has been provided in the amount prescribed by
Table F.2 of this section using one of the methods described in paragraph (7)
of this section. For an applicant, this certification may state that the
appropriate assurance will be obtained after the application has been approved
and the license issued but prior to the receipt of licensed material.
Table F.2
|
Type of Radioactive Material
|
Exceeding
|
Assurance Amount
|
|
Special Nuclear
|
Greater than 104 but
less than or equal to 105 times the applicable
quantities*
|
$1,125,000
|
|
Greater than 103 but
less than or equal to 104 times the applicable
quantities*
|
$225,000
|
|
Source Material
|
Greater than 10 mCi but less than or equal to 100
mCi in a readily dispersible form
|
$225,000
|
|
Radioactive Material
|
Greater than 104 but
less than or equal to 105 times the applicable
quantities in unsealed form*
|
$1,125,000
|
|
Greater than 103 but
less than or equal to 104 times the applicable
quantities in unsealed form*
|
$225,000
|
|
Greater than 1010
times the applicable quantities in sealed sources
|
$113,000
|
*As indicated in Part C, App. E
(3) Each applicant for a specific
license authorizing the possession and use of more than 100 mCi of source
material in a readily dispersible form shall submit a decommissioning funding
plan as described in C.8.F(5).
(4)
Each applicant for a specific license authorizing possession and use of
quantities of source material greater than 10 mCi but less than or equal to 100
mCi in a readily dispersible form shall either-
(a) Submit a decommissioning funding plan as
described in paragraph C.8.F(5) of this section; or
(b) Submit a certification that financial
assurance for decommissioning has been provided in the amount of $225,000 by
June 2, 2005 using one of the methods described in C.8.F(7). For an applicant,
this certification may state that the appropriate assurance will be obtained
after the application has been approved and the license issued but before the
receipt of licensed material. If the applicant defers execution of the
financial instrument until after the license has been issued, a signed original
of the financial instrument obtained to satisfy the requirements of C.8.F must
be submitted to the Agency prior to receipt of licensed material. If the
applicant does not defer execution of the financial instrument, the applicant
shall submit to the Agency, as part of the certification, a signed original of
the financial instrument obtained to satisfy the requirements of
C.8.F(7).
(5) Each
decommissioning funding plan must be submitted for review and approval and must
contain:
(a) A detailed cost estimate for
decommissioning, in an amount reflecting:
i.
The cost of an independent contractor to perform all decommissioning
activities;
ii. The cost of meeting
the D.1402 criteria for unrestricted use, provided that, if the applicant or
licensee can demonstrate its ability to meet the provisions of D.1403, the cost
estimate may be based on meeting the D.1403 criteria;
iii. The volume of onsite subsurface material
containing residual radioactivity that will require remediation to meet the
criteria for license termination; and
iv. An adequate contingency factor.
(b) Identification of and
justification for using the key assumptions contained in the DCE;
(c) A description of the method of assuring
funds for decommissioning from paragraph (f) of this section, including means
for adjusting cost estimates and associated funding levels periodically over
the life of the facility;
(d) A
certification by the licensee that financial assurance for decommissioning has
been provided in the amount of the cost estimate for decommissioning; and
(e) A signed original of the
financial instrument obtained to satisfy the requirements of C.8.F(7) (unless a
previously submitted and accepted financial instrument continues to cover the
cost estimate for decommissioning).
(6) At the time of license renewal and at
intervals not to exceed 3 years, the decommissioning funding plan must be
resubmitted with adjustments as necessary to account for changes in costs and
the extent of contamination. If the amount of financial assurance will be
adjusted downward, this cannot be done until the updated decommissioning
funding plan is approved. The decommissioning funding plan must update the
information submitted with the original or prior approved plan, and must
specifically consider the effect of the following events on decommissioning
costs:
(a) Spills of radioactive material
producing additional residual radioactivity in onsite subsurface
material;
(b) Waste inventory
increasing above the amount previously estimated;
(c) Waste disposal costs increasing above the
amount previously estimated;
(d)
Facility modifications;
(e) Changes
in authorized possession limits;
(f) Actual remediation costs that exceed the
previous cost estimate;
(g) Onsite
disposal; and
(h) Use of a settling
pond.
(7) Financial
assurance must be provided by one or more of the following methods:
(a) Prepayment. Prepayment is the deposit
prior to the start of operation into an account segregated from licensee assets
and outside the licensee's administrative control of cash or liquid assets that
will retain their value over the projected operating life of the facility and
that are in an amount such that the principal plus accumulated earnings would
be sufficient to pay the necessary costs. Prepayment may be in the form of a
trust, escrow account, government fund, certificate of deposit, or deposit of
government securities.
(b) 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 costs based on a financial test may be used if the
guarantee and test are contained in Appendix C of this Part. A parent company
guarantee may not be used in combination with other financial methods to
satisfy the requirements of this section. A guarantee of funds by the applicant
or licensee for decommissioning costs based on a financial test are as
contained in Appendix D of this Part. A guarantee by the applicant or licensee
may not be used in combination with any other financial methods to satisfy the
requirements of this section or in any other 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
must contain the following conditions:
(i) The
surety or insurance must be open-ended or, if written for a specified term,
such as five years, must be renewed automatically unless 90 days or more prior
to the renewal date, the issuer notifies the Agency, the beneficiary, and the
licensee of its intention not to renew. The surety or insurance must also
provide that the beneficiary may automatically collect prior to the expiration
without proof of forfeiture if the licensee fails to provide a replacement
acceptable to the Agency within 30 days after receipt of notification of
cancellation.
(ii) The beneficiary
of the surety or insurance must be a trustee acceptable to the Agency such as
an appropriate State or federal government agency or a major financial
organization.
(iii) The surety or
insurance must remain in effect until the Agency has terminated the
license.
(c) An external
sinking fund in which deposits are made at least annually, coupled with a
surety method or insurance, the value of which may decrease by the amount being
accumulated in the sinking fund. An external sinking fund is a fund established
and maintained by the periodic deposit of a prescribed amount into an account
segregated from licensee assets and outside the licensee's administrative
control in which the total amount of the periodic deposits plus accumulated
earnings would be sufficient to pay the necessary costs at the time termination
of 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.
(d) In the
case of State, or local government licensees, a certification that the
appropriate government entity will be guarantor of funds.
(e) Other funding methods, which are
demonstrated by the applicant or licensee to provide comparable assurance to
methods, listed in paragraphs (7)(a) through (c) of this section.
(f) Each person licensed under this Part
shall keep records of information important to the safe and effective
decommissioning of the facility in an identified location until the license is
terminated by the Agency. Before licensed activities are transferred or
assigned in accordance with this Part, licensees shall transfer all records
described in this paragraph to the new licensee. If records of relevant
information are kept for other purposes, reference to these records and their
locations may be used. Information the Agency considers important to
decommissioning consists of:
(i) 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
instances when contamination remains after any cleanup procedures or when there
is reasonable likelihood that contaminants may have spread to inaccessible
areas as in the case of possible seepage into porous materials such as
concrete.
These records must include any known information on
identification of involved nuclides, quantities, forms, and
concentrations.
(ii)
As-built drawings and modifications of structures and equipment in restricted
areas where radioactive materials are used and/or stored, and of locations of
possible inaccessible contamination such as buried pipes, which may be subject
to contamination. If required drawings are referenced, each relevant document
need not be indexed individually. If drawings are not available, the licensee
shall substitute appropriate records of available information concerning these
areas and locations.
(iii) Except
for areas containing only sealed sources (provided the sources have not leaked
or no contamination remains after any leak) or radioactive materials having
only half-lives of less than 65 days, a list contained in a single document and
updated every two years, of the following:
(a)
All areas designated and formerly designated restricted areas as defined in
A.2;
(b) All areas outside of
restricted areas that require documentation under C.8.F(7)(f)(i);
(c) All areas outside of restricted areas
where current and previous wastes have been buried as documented under D.2108;
and
(d) All areas outside of
restricted areas that contain material such that, if the license expired, the
licensee would be required to either decontaminate the area to meet the
criteria for decommissioning in Part D or apply for approval for disposal under
D.2002.
(iv) Records of
the cost estimate performed for the decommissioning funding plan or of the
amount certified for decommissioning, and records of the funding method used
for assuring funds if either a funding plan or certification is used.
