Current through September 17, 2024
This section addresses financial assurance and recordkeeping
for decommissioning.
018.01
DECOMMISSIONING FUNDING PLAN. The following
requirements apply to the submission of decommissioning funding plans.
018.01(A)
UNSEALED RADIOACTIVE
MATERIAL. Each holder of, or applicant for a specific license
authorizing the possession and use of unsealed radioactive material of
half-life greater than 120 days and in quantities exceeding
105 times the applicable quantities set forth in 180
NAC 4, Appendix 4-F must submit a decommissioning funding plan as described in
180 NAC 3-018.05. 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 the quantity of each isotope to the
applicable value in Appendix 4-F of 180 NAC 4.
018.01(B)
SEALED SOURCES OR
PLATED FOILS. Each holder of, or applicant for any specific
license authorizing the possession and use of sealed sources or plated foils of
half-life greater than 120 days and in quantities exceeding
1012 times the applicable quantities set forth in
180 NAC 4, Appendix 4-F, or when a combination of isotopes is involved if R, as
defined in 180 NAC 3-018.01(A), divided by 1012 is
greater than 1, must submit a decommissioning funding plan as described in 180
NAC 3-018.05.
018.02
DECOMMISSIONING FUNDING PLAN OR CERTIFICATION OF FINANCIAL
ASSURANCE. Each holder of, or applicant for a specific license
authorizing possession and use of radioactive material of half-life greater
than 120 days and in quantities specified in 180 NAC 3-018.04 must either:
(A) Submit a decommissioning funding plan as
described in 180 NAC 3-018.05; or
(B) Submit a certification that financial
assurance for decommissioning has been provided in the amount prescribed by 180
NAC 3-018.04 using one of the methods described in 180 NAC 3-018.06. 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 radioactive 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 180 NAC 3-018.06 must
be submitted to the Department before receipt of radioactive material. If the
applicant does not defer execution of the financial instrument, the applicant
must submit to the Department as part of the certification, a signed original
of the financial instrument obtained to satisfy the requirements of 180 NAC
3-018.06.
018.03
WASTE COLLECTORS, WASTE PROCESSORS AND LICENSEES HAVING SITES WITH
RESIDUAL RADIOACTIVITY. The following requirements apply to waste
collectors and waste processors and sites unable to meet radiological criteria
for unrestricted release.
018.03(A)
WASTE COLLECTOR AND WASTE PROCESSORS. Waste collector
and waste processors, as defined in 180 NAC 4, Appendix 4-D, must provide
financial assurance in an amount based on a decommissioning funding plan as
described in 180 NAC 3-018.05. The decommissioning funding plan must include
the cost of disposal of the maximum amount, in curies, of radioactive material
permitted by license, and the cost of disposal of the maximum quantity, by
volume, of radioactive material which could be present at the licensee's
facility at any time, in addition to the cost to remediate the licensee's site
to meet the license termination criteria of 180 NAC 3.
018.03(B)
LICENSEES HAVING SITES
WITH RESIDUAL RADIOACTIVITY. If, in surveys made under 180 NAC
4-021.01, residual radioactivity in the facility and environment, including the
subsurface, is detected at levels that would, if left uncorrected, prevent the
site from meeting the 180 NAC
4-016 criteria for unrestricted use,
the licensee must provide financial assurance in an amount based on a
decommissioning funding plan as described in 180 NAC 3-018.05 within one year
of when the survey is completed.
018.04
TABLE OF REQUIRED AMOUNTS
OF FINANCIAL ASSURANCE FOR DECOMMISSIONING BY QUANTITY OF
MATERIAL. Licensees having possession limits exceeding the upper
bound of this table must base financial assurance on a decommission funding
plan.
|
Greater than 104 but less
than or equal to 105 times the applicable quantities
of 180 NAC 4, Appendix 4-F in unsealed form. (For a combination of isotopes, if
R, as defined in 180 NAC 3-018.01, (A) divided by
104 is greater than 1 but R divided by
105 is less than or equal to 1.) |
$1,125,000 |
|
Greater than 103 but less
than or equal to 104 times the applicable quantities
of 180 NAC 4, Appendix 4-F in unsealed form. (For a combination of isotopes, if
R, as defined in 180 NAC 3-018.01, (A) divided by
103 is greater than 1 but R divided by
104 is less than or equal to 1.) |
$225,000 |
|
Greater than 1010 but
less than or equal to 1012 times the applicable
quantities of 180 NAC 4, Appendix 4-F in sealed sources or plated foils. (For a
combination of isotopes, if R, as defined in180 NAC 3-018.01, (A) divided by
1010 is greater than 1, but R divided by
1012 is less than or equal to 1.) |
$113,000 |
018.05
REQUIREMENTS FOR REVIEW
AND APPROVAL. Each decommissioning funding plan must be submitted
for review and approval and must contain:
(1)
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 180 NAC
4-016 criteria for unrestricted use,
provided that, if the applicant or licensee can demonstrate its ability to meet
the provisions of 180 NAC
4-017, the cost estimate may be based
on meeting the 180 NAC
4-017 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;
(2)
Identification of and justification for using the key assumptions contained in
the decommissioning cost estimate (DCE);
(3) A description of the method of assuring
funds for decommissioning from 180 NAC 3018.06, 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; and
(5) A signed original of the financial
instrument obtained to satisfy the requirements of 180 NAC 3-018.06, unless a
previously submitted and accepted financial instrument continues to cover the
cost estimate for decommissioning.
018.05(A)
DECOMMISSIONING FUNDING
PLAN RESUBMISSION. At the time of license renewal and at intervals
not to exceed three 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:
(i) Spills of radioactive material producing
additional residual radioactivity in onsite subsurface material;
(ii) Waste inventory increasing above the
amount previously estimated;
(iii)
Waste disposal costs increasing above the amount previously
estimated;
(iv) Facility
modifications;
(v) Changes in
authorized possession limits;
(vi)
Actual remediation costs that exceed the previous cost estimate;
(vii) Onsite disposal; and
(viii) Use of a settling pond.
018.06
FINANCIAL INSTRUMENT. The financial instrument must
include the licensee's name, license number, and the name, address, and other
contact information of the issuer, and, if a trust is used, the trustee. When
any of the foregoing information changes, the licensee must, within 30 days,
submit financial instruments reflecting such changes. The financial instrument
submitted must be a signed original or signed original duplicate, other than
where a copy of the signed original is specifically permitted. Financial
assurance for decommissioning must be provided by one or more of the following
methods.
018.06(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 such that the
amount of funds would be sufficient to pay decommissioning costs. Prepayment
must be made into a trust account, and the trustee and trust must be acceptable
to the Department.
018.06(B)
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, or letter 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 as contained in 180 NAC 3, Appendix
3-F. For commercial corporation that issue bonds, 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 are as contained in 180 NAC 3 Appendix 3-D.
For commercial companies that do not issue bonds, a guarantee of funds by the
applicant or licensee for decommissioning costs may be used if the guarantee
and test are as contained in 180 NAC 3, Appendix 3-G. For nonprofit entities,
such as colleges, universities, and nonprofit hospitals, a guarantee of funds
by the applicant or licensee may be used if the guarantee and test are as
contained in 180 NAC 3, Appendix 3H. Other than for an external sinking fund, a
parent company guarantee or a guarantee by the applicant or licensee may not be
used in combination with any other financial methods used to satisfy the
requirements of this section. A guarantee by the applicant or licensee may not
be used in any 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 for decommissioning must
contain the following conditions:
(i) The
surety method 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 Department, the beneficiary,
and the licensee of its intention not to renew. The surety method or insurance
must also provide that the full face amount be paid to the beneficiary
automatically prior to the expiration without proof of forfeiture if the
licensee fails to provide a replacement acceptable to the Department within 30
days after receipt of notification of cancellation;
(ii) The surety method or insurance must be
payable to a trust established for decommissioning costs. The trustee and trust
must be acceptable to the Department. An acceptable trustee includes an
appropriate State or Federal government agency or an entity which has the
authority to act as a trustee and whose trust operations are regulated and
examined by a Federal or State agency; and
(iii) The surety method or insurance must
remain in effect until the Department has terminated the license.
018.06(C)
EXTERNAL
SINKING FUND. 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 setting aside
funds periodically in an account segregated from licensee assets and outside
the licensee's administrative control in which the total amount of funds would
be sufficient to pay decommissioning costs at the time termination of operation
is expected. An external sinking fund may be in the form of a trust. If the
other guarantee method is used, no surety or insurance may be combined with the
external sinking fund. The surety insurance, or other guarantee provisions must
be as stated in 180 NAC 3-018.06(B).
018.06(D)
STATEMENT OF
INTENT. In the case of Federal, State, or local government
licensees, a statement of intent containing a cost estimate for decommissioning
or an amount based on the Table in 180 NAC 3-018.04, and indicating that funds
for decommissioning will be obtained when necessary.
018.06(E)
GOVERNMENT ENTITY
ASSUMING CUSTODY AND OWNERSHIP. When a governmental entity is
assuming custody and ownership of a site, an arrangement that is deemed
acceptable by such governmental entity.
018.07
RECORDS OF INFORMATION
IMPORTANT TO THE DECOMMISSIONING OF THE FACILITY. Each person
licensed under 180 NAC 3, 5, 7, 12, 14 and 19 must keep records of information
important to the decommissioning of the facility in an identified location
until the site is released for unrestricted use. Before licensed activities are
transferred or assigned according to 180 NAC 3-017.02, licensees must transfer
all records described in 180 NAC 3-018.07 to the new licensee. In this case,
the new licensee will be responsible for maintaining these records until the
license is terminated. If records important to the decommissioning of a
facility are kept for other purposes, reference to these records and their
locations may be used. Information important to decommissioning consists of:
(A) 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;
(B) As-built drawings and modifications of
structures and equipment in restricted areas where radioactive materials are
used 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 must substitute appropriate records of
available information concerning these areas and locations;
(C) A list contained in a single document and
updated every 2 years, for areas other than 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.
The list must include the following:
(i) All
areas designated and formerly designated as restricted areas as defined under
180 NAC
1-002;
(ii) All areas outside of restricted areas
that require documentation under 180 NAC 3-018.07, (A);
(iii) All areas outside of restricted areas
where current and previous wastes have been buried as documented under 180 NAC
4-054; and
(iv) All areas outside of restricted areas
which contain material such that, if the license expired, the licensee would be
required to either decontaminate the area to unrestricted release levels or
apply for approval for disposal under 180 NAC 4040; and
(D) 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.
018.08
DECOMMISSIONING FUNDING
PLAN FOR APPLICATIONS AUTHORIZING POSSESSION AND USE OF MORE THAN 100 mCi OF
SOURCE MATERIAL IN A READILY DISPERSIBLE FORM. Each person
applying for a specific license authorizing the possession and use of more than
100 mCi of source material in a readily dispersible form must submit a
decommissioning funding plan as described in 180 NAC 3-018.05.
018.09
DECOMMISSIONING FUNDING
PLAN FOR APPLICATIONS AUTHORIZING POSSESSION AND USE OF GREATER THAN 10 mCi BUT
LESS THAN OR EQUAL TO 100 mCi OF SOURCE MATERIAL IN A READILY DISPERSIBLE
FORM. Each person applying for a specific license authorizing the
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 must either:
(A) Submit a decommissioning funding plan as
described in 180 NAC 3-018.05; or
(B) Submit a certification that financial
assurance for decommissioning has been provided in the amount of $225,000 using
one of the methods described in 180 NAC 3-018.06. 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 180 NAC 3-018.06
must be submitted to Department prior to receipt of licensed material. If the
applicant does not defer execution of the financial instrument, the applicant
must submit to Department, as part of the certification, a signed original of
the financial instrument obtained to satisfy the requirements of 180 NAC
3-18.06.
018.10
FINANCIAL ASSURANCE FUNDS. In providing financial
assurance under 180 NAC
3-018, each licensee must use the
financial assurance funds only for decommissioning activities and each licensee
must monitor the balance of funds held to account for market variations. The
licensee must replenish the funds, and report such actions to the Department,
as follows:
(A) If, at the end of a calendar
quarter, the fund balance is below the amount necessary to cover the cost of
decommissioning, but is not below 75 percent of the cost, the licensee must
increase the balance to cover the cost, and must do so within 30 days after the
end of the calendar quarter;
(B)
If, at any time, the fund balance falls below 75 percent of the amount
necessary to cover the cost of decommissioning, the licensee must increase the
balance to cover the cost, and must do so within 30 days of the occurrence;
and
(C) Within 30 days of taking
the actions required by 180 NAC 3-018.10(A) or (B), the licensee must provide a
written report of such actions to the Department and state the new balance of
the fund.
