Current through Register Vol. 48, No. 9, September 27, 2024
1.15.1 The
Department shall consider on a case-by-case basis, and require if found necessary
before issuance of a license, financial assurances for the purpose of
decommissioning or decontaminating facilities and the environment prior to closure
and release for unrestricted use, or cleanup of the environment and facilities due
to operations and accidental and unexpected releases of radioactive materials. The
form and amount of such financial assurances shall be specifically determined by the
Department.
1.15.2 Financial or surety
arrangements generally acceptable to the Department include surety bonds, cash
deposits, certificates of deposits, 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.
1.15.3 Notwithstanding the
requirements of RHA 1.15.1 and 1.15.2 above, each applicant for a specific license
of the types described in RHA 1.15.3.1 through 1.15.3.4 shall submit a
decommissioning funding plan as described in RHA 1.15.11.
1.15.3.1 Authorizing the possession and use of
unsealed byproduct material of half-life greater than 120 days and in quantities
exceeding 105 times the applicable quantities set forth
in Appendix C, RHA 3.54 or 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 C, RHA 3.54.
1.15.3.2
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 Appendix C, RHA 3.54 (or when a
combination of isotopes is involved if R, as defined in RHA 1.15.3.1, divided by
1012 is greater than 1).
1.15.3.3 Authorizing the possession and use of
more than 100 millicuries of source material in a readily dispersible
form.
1.15.3.4 Authorizing the
possession of unsealed special nuclear material in quantities exceeding
105 times the applicable quantities set forth in Appendix
C, RHA 3.54 or when a combination of isotopes is involved if R divided by
105 is greater than 1 (unity rule), where R is the sum of
the ratios of the quantity of each isotope to the applicable value in Appendix C,
RHA 3.54.
1.15.4 Each
applicant for a specific license as described in 1.15.3 and in quantities specified
in RHA 1.15.10 of this section shall either---
1.15.4.1 Submit a decommissioning funding plan as
described in RHA 1.15.11 of this section; or
1.15.4.2 Submit a certification that financial
assurance for decommissioning has been provided in the amount prescribed by RHA
1.15.10 of this section using one of the methods described in RHA 1.15.12 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. 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
RHA 1.15.12 must be submitted to the Department before receipt of licensed material.
If the applicant does not defer execution of financial instrument, the applicant
shall submit to the Department, as part of the certification, a signed original of
the financial instrument obtained to satisfy the requirements of RHA
1.15.12.
1.15.5 Each holder of
a specific license issued on or after the effective date of these regulations, which
is of a type described in RHA 1.15.3 or 1.15.4 of this section, shall provide
financial assurance for decommissioning in accordance with. RHA 1.15.12.
1.15.6 Each holder of a specific license of a type
described in RHA 1.15.3 of this section shall submit a decommissioning funding plan
as described in RHA 1.15.11 or a certification of financial assurance for
decommissioning in an amount at least equal to $1,125,000 in accordance with the
criteria set forth in this section. 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.
1.15.7 Each holder of a
specific license of a type described in RHA 1.15.4 shall submit a decommissioning
funding plan as described in RHA 1.15.11 or a certification of financial assurance
for decommissioning in accordance with RHA 1.15.12.
1.15.8 Any licensee who has submitted an
application for renewal of license in accordance with RHA 2.12 shall provide
financial assurance for decommissioning in accordance with RHA 1.15.3 and RHA
1.15.4.
1.15.9 Waste collectors and
waste processors, as defined in RHA 3.2, must provide financial assurance in an
amount based on a decommissioning funding plan as described in RHA 1.15.11. The
decommissioning funding plan must include the cost of disposal of the maximum amount
(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 RHA 2.11. The
decommissioning funding plan must be submitted by June 30, 2007.
1.15.10 Required Amounts of Financial Assurance
for Decommissioning by Quantity of Material. Licensees required to submit the
$1,125,000 must do so by June 30, 2007. Licensees required to submit $113,000 or
$225,000 amount must do so by June 30, 2007. Licensees having possession limits
exceeding the upper bounds of this table must base financial assurance on a
decommissioning funding plan.
TABLE I
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(i) greater than 104 but less than or equal to 105 times
the applicable quantities of Appendix C, RHA 3.54 in unsealed form. (For a
combination of isotopes, if R, as defined in RHA 1.15.3.1, divided by 104 is greater
than 1 but R divided by 105 is less than or equal to 1)
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$1,125,000
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(ii) greater than 103 but less than or equal to 104
times the applicable quantities of Appendix C, RHA 3.54 in unsealed form. (For a
combination of isotopes, if R, as defined in RHA 1.15.3.1 divided by 103 is greater
than 1 but R divided by 104 is less than or equal to 1.)
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$225,000
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(iii) greater than 1010 times the applicable quantities
of Appendix C, RHA 3.54 in sealed sources or plated foils. (For a combination of
isotopes, if R, as defined in RHA 1.15.3.1, divided by 1010 is greater than 1, but R
divided by 1012 is less than or equal to 1.)
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$113,000
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1.15.10.1
Prepayment. Prepayment is the deposit prior to the start of the 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.
1.15.10.2 A surety method,
insurance, or other guarantee method. These methods guarantee that decommissioning
costs will be paid should the licensee default. 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 RHA 1.17, Appendix A to 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 may be used if the
guarantee and test are as contained in Appendix B 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 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.
(iii) The surety method or
insurance must remain in effect until the Department has terminated the
license.
1.15.10.3 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 provisions must be as stated in RHA
1.15.10.2 of this section.
1.15.10.4 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 the Table in
RHA 1.15.8 of this section, and indicating that funds for decommissioning will be
obtained when necessary.
1.15.11 Decommissioning Funding Plan.
1.15.11.1 Each decommissioning funding plan must
be submitted for review and approval and must contain:
1.15.11.1.1 A detailed cost estimate for
decommissioning, in an amount reflecting:
1.15.11.1.1.1 The cost of an independent
contractor to perform all decommissioning activities;
1.15.11.1.1.2 The cost of meeting the RHA 3.57.2
criteria for unrestricted use, provided that, if the applicant or licensee can
demonstrate its ability to meet the provisions of RHA 3.57.3, the cost estimate may
be based on meeting the RHA 3.57.3 criteria;
1.15.11.1.1.3 The volume of onsite subsurface
material containing residual radioactivity that will require remediation to meet the
criteria for license termination; and
1.15.11.1.1.4 An adequate contingency
factor.
1.15.11.1.2
Identification of and justification for using the key assumptions contained in the
DCE;
1.15.11.1.3 A description of the
method of assuring funds for decommissioning from RHA 1.15.12, including means for
adjusting cost estimates and associated funding levels periodically over the life of
the facility;
1.15.11.1.4 A
certification by the licensee that financial assurance for decommissioning has been
provided in the amount of the cost estimate for decommissioning; and
1.15.11.1.5 A signed original of the financial
instrument obtained to satisfy the requirements of RHA 1.15.12 of this section
(unless a previously submitted and accepted financial instrument continue to cover
the cost estimate for decommissioning).
1.15.11.2 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:
1.15.11.2.1 Spills of radioactive material
producing additional residual radioactivity in onsite subsurface material;
1.15.11.2.2 Waste inventory increasing above the
amount previously estimated;
1.15.11.2.3
Waste disposal costs increasing above the amount previously estimated;
1.15.11.2.4 Facility modifications;
1.15.11.2.5 Changes in authorized possession
limits;
1.15.11.2.6 Actual remediation
costs that exceed the previous cost estimate;
1.15.11.2.7 Onsite disposal; and
1.15.11.2.8 Use of a settling pond.
1.15.12 The financial
instrument must include the licensee's name, license number, and docket 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, except
where a copy is specifically permitted. Financial assurance for decommissioning must
be provided by one or more of the following methods:
1.15.13 Each person licensed under this part or
Parts II, IV or V of these regulations 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 RHA 2.10.2, licensees shall transfer all records
described in this paragraph to the new license. 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
Department considers important to decommissioning consists of:
1.15.13.1 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.
1.15.13.2 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.
1.15.13.3 Except for areas
containing sealed sources (provided the sources have not leaked or not contamination
remains after any leak), or where licensed material has been used in a device or
component and is intact (for example depleted uranium used only for shielding or as
penetrators in unused munitions), or byproduct materials having only half-lives of
less than 65 days, a list contained in a single document and updated every 2 years
of the following:
1.15.13.3.1 All areas designated
and formerly designated restricted areas as defined RHA 1.2;
1.15.13.3.2 All areas outside of restricted areas
that required documentation under RHA 1.15;
1.15.13.3.3 All areas outside of restricted areas
where current and previous wastes have been buried as documented under RHA 3.41;
and
1.15.13.3.4 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 levels
or apply for approval for disposal under RHA 3.28.
1.15.13.4 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.
