Current through all regulations passed and filed through March 18, 2024
Except for licenses authorizing the receipt, possession, and
use of source material for uranium or thorium milling, or byproduct material at
sites formerly associated with such milling, for which financial assurance
requirements are set forth in the appendix to rule
3701:1-44-14
of the Administrative Code, criteria for providing financial assurance for
decommissioning are as follows:
(A)
Each applicant for a specific license authorizing the possession and use of
more than 3.7 gigabecquerels (one hundred millicuries) of source material in a
readily dispersible form shall submit a decommissioning funding plan as
described in paragraph (D) of this rule.
(B) Each applicant for a specific license
authorizing possession and use of quantities of source material greater than
0.37 gigabecquerels (ten millicuries) but less than or equal to 3.7
gigabecquerels (one hundred millicuries) in a readily dispersible form shall
either:
(1) Submit a decommissioning funding
plan as described in paragraph (D) of this rule; or
(2) Submit a certification that financial
assurance for decommissioning has been provided in the amount of two hundred
twenty-five thousand dollars using one of the methods described in paragraph
(E) of this rule. 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 paragraph (E) of this rule must be submitted to the
director prior to receipt of licensed material. If the applicant does not defer
execution of the financial instrument, the applicant shall submit to the
director, as part of the certification, a signed original of the financial
instrument obtained to satisfy the requirements of paragraph (E) of this
rule.
(C)
(1) Each holder of a specific license issued
on or after July 27, 1990, which is covered by paragraph (A) or (B) of this
rule, shall provide financial assurance for decommissioning in accordance with
the criteria set forth in this rule.
(2) Each holder of a specific license issued
before July 27, 1990, and of a type described in paragraph (A) of this rule
shall submit a decommissioning funding plan as described in paragraph (D) of
this rule or a certification of financial assurance for decommissioning in an
amount at least equal to one million one hundred twenty-five thousand dollars
in accordance with the criteria set forth in this rule. If the licensee submits
the certification of financial assurance rather than a decommissioning funding
plan, the licensee shall include a decommissioning funding plan in any
application for license renewal.
(3) Each holder of a specific license issued
before July 27, 1990, and of a type described in paragraph (B) of this rule
shall submit a decommissioning funding plan, as described in paragraph (D) of
this rule, or a certification of financial assurance for decommissioning in
accordance with the criteria set forth in this rule.
(4) Any licensee who has submitted an
application for renewal of license in accordance with rule
3701:1-38-02
of the Administrative Code shall provide financial assurance for
decommissioning in accordance with paragraphs (A) and (B) of this
rule.
(D)
(1) 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 criteria specified in paragraph (B) of rule
3701:1-38-22 of
the Administrative Code for unrestricted use, provided that, if the applicant
or licensee can demonstrate its ability to meet the provisions of paragraph (D)
of rule
3701:1-38-22 of
the Administrative Code, the cost estimate may be based on meeting this
criteria;
(iii) The volume of
onsite subsurface material containing residual radioactivity that will require
remediation; and
(iv) An adequate
contingency factor.
(b)
Identification of and justification for using the key assumptions contained in
the decommissioning cost estimate;
(c) A description of the method of assuring
funds for decommissioning from paragraph (E) of this rule, 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 paragraph (E) of
this rule (unless a previously submitted and accepted financial instrument
continues to cover the cost estimate for decommissioning).
(2) 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 the 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.
(E) Financial assurance for decommissioning
must be provided by one or more of the following methods:
(1) 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
may be in the form of a trust, escrow account, government fund, certificate of
deposit, or deposit of government securities.
(2) 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 as
contained in appendix B to rule
3701:1-40-17
of the Administrative Code. A parent company guarantee may not be used in
combination with other financial methods to satisfy the requirements of this
rule. 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 if the guarantee and test are as contained in appendix C to rule
3701:1-40-17
of the Administrative Code. 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 appendix D to rule
3701:1-40-17
of the Administrative Code. 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 appendix E
to rule
3701:1-40-17
of the Administrative Code. 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 rule or 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:
(a) 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 ninety days or more prior to the renewal date, the
issuer notifies the director, 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 director within thirty days after receipt of
notification of cancellation.
(b)
The surety method or insurance must be payable to a trust established for
decommissioning costs. The trustee and trust must be acceptable to the
director. 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.
(c) The surety method or
insurance must remain in effect until the director has terminated the
license.
(3) 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 provision
must be as stated in paragraph (E)(2) of this rule.
(4) 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 paragraph (B) of this rule, and
indicating that funds for decommissioning will be obtained when
necessary.
(5) When a government
entity is assuming custody and ownership of a site, an arrangement that is
deemed acceptable by such government entity.
(F) Each person licensed under Chapter
3701:1-44 of the Administrative Code shall keep records of information
important to the decommissioning of a facility in an identified location until
the site is released for unrestricted use. Before licensed activities are
transferred or assigned in accordance with paragraph (B) of rule
3701:1-44-19
of the Administrative Code licensees shall transfer all records described in
this paragraph 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 the director considers important to decommissioning consists of:
(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 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.
(2) 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.
(3) Except for areas
containing depleted uranium used only for shielding or as penetrators in unused
munitions, a list contained in a single document and updated every two years,
of the following:
(a) All areas designated and
formerly designated as restricted areas as defined in rule
3701:1-38-01 of the
Administrative Code;
(b) All areas
outside of restricted areas that require documentation under paragraph (F)(1)
of this rule;
(c) All areas outside
of restricted areas where current and previous wastes have been buried as
documented under paragraph (K) of rule
3701:1-38-20 of the
Administrative Code; 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 rule
3701:1-38-22 of
the Administrative Code, or apply for approval for disposal under paragraph (C)
of rule
3701:1-38-19 of
the Administrative Code.
(4) 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.
Five Year Review (FYR) Dates:
09/22/2015 and
09/15/2020
Promulgated
Under: 119.03
Statutory
Authority: 3748.04
Rule
Amplifies: 3748.04
Prior
Effective Dates: 2/6/2006, 11/22/13