Each licensee or applicant for a license subject to the
requirements of rule
3701:1-43-10 of the
Administrative Code
will post with the director, financial assurance,
or security, to ensure the protection of the public health and safety and the
environment in the event of abandonment, default, or other inability or
unwillingness of the licensee to meet the requirements of Chapter 3748. of the
Revised Code. Financial assurance arrangements
will:
(A) Consist of financial assurance for
decommissioning, either by a decommissioning funding plan or certification of
financial assurance, provided by the licensee and approved by the director
prior to the issuance of the license and provided by one or more of the
following methods:
(1) Prepayment by
depositing into an account segregated from licensee assets and outside the
licensee's administrative control, cash or liquid assets such that the amount
of funds will be sufficient to pay decommissioning costs. Prepayment may be in
the form of a trust, escrow account, government fund, certificate of deposit,
or deposit of government securities.
(2) Surety, insurance, or other method in
accordance with paragraph (F) of rule
3701:1-40-17 of the
Administrative Code, that guarantees 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 guarantee by the applicant or licensee
will not be used
in combination with any other financial methods used to satisfy the
requirements of this paragraph or in any situation where the applicant or
licensee has a parent company holding majority control of the voting stock of
the company.
(3) A parent company
guarantee of funds for decommissioning costs based on a financial test may be
used provided that the parent company meets the requirements specified in
appendix B to rule
3701:1-40-17 of the
Administrative Code. A parent company guarantee
will not be used
in combination with other financial methods to satisfy the requirements of this
rule.
(4) For commercial
corporations that issue bonds, a guarantee of funds by the applicant or
licensee for decommissioning costs based on a financial test may be used
provided that the guarantee meets the requirements of appendix C to rule
3701:1-40-17 of the
Administrative Code.
(5) For
commercial companies that do not issue bonds, a guarantee of funds for
decommissioning costs may be used provided that the guarantee meets the
requirements of appendix D to rule
3701:1-40-17 of the
Administrative Code.
(6) For
nonprofit colleges, universities, hospitals, or research and development
entities, a guarantee of funds for decommissioning costs may be used provided
that the guarantee meets the requirements of appendix E to rule
3701:1-40-17 of the
Administrative Code. The director may
need proof of
nonprofit status.
(7) 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, escrow account, government fund, certificate of
deposit, or deposit of government securities. The surety or insurance
provisions
will be as stated in paragraph (A)(2) of this
rule.
(8) In the case of state or
local government licensee, a statement of intent containing a cost estimate for
decommissioning or an amount specified in paragraphs (C)(1) to (C)(3) of rule
3701:1-40-17 of the
Administrative Code, and indicating that funds for decommissioning will be
obtained when necessary. As used in this rule, "state or local government
licensee" does not include government owned or assisted colleges, universities
or hospitals.
(B) Each
decommissioning funding plan
will contain a cost estimate for decommissioning
and a description of the method of assuring funds for decommissioning in
accordance with paragraph (A) of this rule, including the means for adjusting
cost estimates and associated funding levels at each renewal over the life of
the facility. The decommissioning funding plan
will also
contain a certification by the licensee that financial assurance for
decommissioning has been provided in the amount of the cost estimate for
decommissioning and a signed original of the financial instrument obtained to
satisfy the requirements of paragraph (A) of this rule.
(C) Be established prior to issuance of the
license or the commencement of operations to assure that sufficient funds will
be available to carry out the decontamination and decommissioning of the
facility;
(D) Be continuous for the
duration of the license and for a period coincident with the applicant or
licensee's responsibility under Chapter 3748. of the Revised Code and the rules
promulgated thereunder; and
(E) Be
available in Ohio subject to judicial process and execution in the event
needed for the purposes set forth.