South Carolina Code of Regulations
Chapter 61 - DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL
Subchapter 61-63 - Radioactive Materials (Title A)
Part I - GENERAL PROVISIONS
Section 61-63.I.RHB 1.18 - [Appendix B] Criteria Relating to Use of Financial Tests and Self Guarantees for Providing Reasonable Assurance of Funds for Decommissioning
Universal Citation: SC Code Regs 61-63.I.RHB 1.18
Current through Register Vol. 48, No. 9, September 27, 2024
I. INTRODUCTION
An applicant or licensee may provide reasonable assurance of the availability of funds for decommissioning based on furnishing its own guarantee that funds will be available for decommissioning costs and on a demonstration that the company passes the financial test of Section II of this appendix. The terms of the self-guarantee are Section III of this appendix. This appendix establishes criteria for passing the financial test for the self guarantee and establishes the terms for a self-guarantee.
II. FINANCIAL TEST
A. To pass the financial test, a company must
meet all of the following criteria:
1. Tangible net
worth at least 10 times the total current decommissioning cost estimate (or the
current amount required if certification is used) for all decommissioning activities
for which the company is responsible as self-guaranteeing licensee and as
parent-guarantor.
2. Assets located in
the United States amounting to at least 90 percent of total assets or at least 10
times the total current decommissioning cost estimate (or the current amount
required if certification is used) for all decommissioning activities for which the
company is responsible as self-guaranteeing licensee and as
parent-guarantor.
3. A current rating
for its most recent bond issuance of AAA, AA, A as issued by Standard and Poors
(S&P), or Aaa, Aa, or A as issued by Moodys.
B. To pass the financial test, a company must meet
all of the following additional requirements:
1.
The company must have at least one class of equity securities registered under the
Securities Exchange Act of 1934.
2. The
company's independent certified public accountant must have compared the data used
by the company in the financial test which is derived from the independently
audited, year end financial statements for the latest fiscal year, with the amounts
in such financial statement. In connection with that procedure, the licensee shall
notify the Department within 90 days of any matters coming to the attention of the
auditor that cause the auditor to believe that the data specified in the financial
test should be adjusted and that the company no longer passes the test.
3. After the initial financial test, the company
must repeat passage of the test within 90 days after the close of each succeeding
fiscal year.
C. If the
licensee no longer meets the requirements of Section II.A, of this appendix, the
licensee must send immediate notice to the Department of its intent to establish
alternate financial assurance as specified in the Department's regulations within
120 days of such notice.
III. COMPANY SELF-GUARANTEE
The terms of a self-guarantee which as applicant or licensee furnishes must provide that:
A. The
guarantee will remain in force unless the licensee sends notice of cancellation by
certified mail to the Department. Cancellation may not occur, however, during the
120 days beginning on the date of receipt of the notice of cancellation by the
Department, as evidenced by the return receipt.
B. The licensee shall provide alternative
financial assurance as specified in the Department's regulations within 90 days
following receipt by the Department of a notice of cancellation of the
guarantee.
C. The guarantee and
financial test provisions must remain in effect until the Department has terminated
the license or until another financial assurance method acceptable to the Department
has been put in effect by the licensee.
D. The licensee will promptly forward to the
Department and the licensee's independent auditor all reports covering the latest
fiscal year filed by the licensee with the Securities and Exchange Commission
pursuant to the requirements of section13 of the Securities And Exchange Act of
1934.
E. If at any time, the licensee's
most recent bond issuance ceases to be rated in any category of "A" or above by
either Standard and Poors or Moodys, the licensee will provide notice in writing of
such fact to the Department within 20 days after publication of the change by the
rating service. If the licensee's most recent bond issuance ceases to be rated in
any category of A or above by both Standard and Poors and Moodys, the licensee no
longer meets the requirements of Section II.A, of this appendix.
F. The applicant or licensee must provide to the
Department a written guarantee (a written commitment by a corporate officer) which
states that the licensee will fund and carry out the required decommissioning
activities or, upon issuance of an order by the Department, the licensee will set up
and fund a trust in the amount of the current cost estimate for
decommissioning.
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