Code of Massachusetts Regulations
105 CMR - DEPARTMENT OF PUBLIC HEALTH
Title 105 CMR 120.000 - The Control of Radiation
QUALITY ASSURANCE
Section 120.850 - Funding for Facility Closure

(A) The Operator shall provide assurances prior to the commencement of operations, that sufficient funds will be available to carry out facility closure. These assurances shall be based on Department-approved cost estimates reflecting the Department-approved facility closure plan. The Operator's cost estimates must take into account total costs that would be incurred if an independent contractor were hired to perform the closure work. The assurances shall establish that there will be sufficient funds for:

(B) In order to avoid unnecessary duplication and expense, the Department may accept financial sureties that have been consolidated with earmarked financial or surety arrangements established to meet requirements of Federal or other State agencies or local governmental bodies for such closure. The Department may accept these arrangements only if they are considered adequate to satisfy the requirements of 105 CMR 120.800 and that the portion of the surety which covers the closure of the facility is clearly identified and committed for use in accomplishing these activities.

(C) The Operator's financial or surety arrangement shall be submitted annually for review by the Department to ensure that sufficient funds are available for completion of the closure plan assuming that the work has to be performed by an independent contractor.

(D) The amount of the Operator's financial or surety arrangement shall change in accordance with changes in the predicted costs of implementing the closure plan. Factors affecting closure cost estimates include, but are not limited to inflation, increases in the amount of disturbed land, changes in engineering plans, and closure that has already been accomplished. The financial or surety arrangements shall be sufficient at all times to cover the costs of closure of any disposal units that are expected to be used before the next license renewal.

(E) Financial or surety arrangements shall be written for a specified period of time and provide for automatic renewal unless the person who issues the surety notifies the Department, the Board, and the Operator not less than 90 days prior to the renewal date of its intention not to renew. In such a situation, the Operator must submit a replacement surety within 30 days after notification of cancellation. If the Operator fails to provide a replacement surety acceptable to the Department, the Board may collect on the original surety.

(F) Proof of forfeiture shall not be necessary to collect the surety so that, in the event that the Operator cannot provide an acceptable replacement surety within the required time, the surety shall be automatically collected prior to its expiration. The conditions described above shall be clearly stated on any surety instrument which is not open ended, and shall be agreed to by all parties.

(G) Financial or surety arrangements generally acceptable to the Department include surety bonds, cash deposits, certificates of deposit, deposits of government securities, escrow accounts, irrevocable letters or lines of credit, trust funds, and combinations of the above or such other types of arrangements as may be approved by the Department. Self-insurance, or any arrangement which essentially constitutes pledging the assets of the Operator, will not satisfy the surety requirement.

(H) The Operator's financial or surety arrangement shall remain in effect until closure has been completed and approved by the Department, and the license has been transferred to the Board.