U.S. Nuclear Regulatory Commission
Technical Assistance Request: Application of the Financial Assurance Requir ement in 10 CFR 30.35, 40.36, and 70.25 to Waste Brokers Located in Agreement States
Title: Technical Assistance Request: Application of the
Financial Assurance Requirement in 10 CFR 30.35, 40.36, and
70.25 to Waste Brokers Located in Agreement States
See the memorandum from J. E. Glenn to R. R. Bellamy dated
September 31, 1990. This memo responds to a technical
assistance request (TAR), dated October 24, 1990, inquiring
about the applicability of the financial assurance
requirements of 10 CFR Parts 30, 40, and 70 to Radiac
Research Corporation and NDL Organization, Inc., waste
brokers in agreement states. The TAR was referred by NMSS
to the Division of Low-Level Waste Management and
Decommissioning (LLWM) who coordinated its response with
the Office of the General Counsel (OGC).
Radiac Research Corporation and NDL Organization, Inc.,
each have an NRC license which allows them to receive and
possess packaged solid waste byproduct, source, and special
nuclear material, and to transfer such packages to
authorized land burial facilities. The possession limits
listed in their licenses are such that financial assurance
would be required pursuant to 10 CFR Parts 30, 40, and 70.
However, their licenses do not permit storage at any
location owned to controlled by the licensee in a
non-Agreement State. Both licensees also have an Agreement
State license from New York State which allows them to
store radioactive material at their facility in New York.
During routine operations, the licensee sends a truck to
customer facilities which picks up prepackaged waste and
then either returns to the licensee's Agreement State
facility or proceeds to the licensed burial site. Hence,
the licensee has no NRC licensed facilities other than
their trucks and these are returned to the to the Agreement
State for decontamination.
Upon consultation with OGC, it was determined by LLWM that
the Decommissioning Rule requirements apply to these waste
broker licensees. Implementation of the regulation occurs
when possession limit thresholds are met, not be storage or
transportation statues described in this situation. Since
the licensees' possession quantities of radioactive
materials exceeds 105 time the applicable quantities set
forth in Appendix C to 10 CFR Part 20, they are required to
provide pursuant to 10 CFR 30.35 (a), a decommissioning
funding plan for the eventual decontamination and disposal
of their trucks and facilities. Each decommissioning plan
pursuant to 10 CFR 30.35 (e) must provide a cost estimate
for decommissioning (the cost estimate may be greater or
lesser than the amounts of financial assurance prescribed
by paragraph (d) of 10 CFR 30.35), a selection of a
financial assurance method for assuring funds for
decommissioning, a copy of the method used to obtain the
dollar value that is reflected in the cost estimate, and a
means of adjusting the cost estimates and associated
funding levels periodically over the life of the
facilities. However, licensees are always entitled,
pursuant to 10 CFR 30.11 (a), to request an exemption to
the Decommissioning Rule requirements and such requests are
evaluated on the merits of each specific case.
It was also noted that the Decommissioning Rule is a matter
of compatibility with Agreement States.
The key points in LLWM's response to the TAR are as follows:
1. The financial assurance requirements apply to waste
brokers because of the quantities of licensed material they
are authorized to possess.
2. The waste brokers must submit a decommissioning
funding plan (DFP) for the eventual decontamination of
their trucks, equipment, and facilities.
3. The DFP, which may be for an amount greater or less
than that prescribed in 10 CFR 30.35 (d) (and equivalent
provisions of 10 CFR Parts 40 and 70), must contain all the
information specified in 10 CFR 30.35 (e).
4. The waste brokers may request, pursuant to 10 CFR
30.11, an exemption from there financial assurance
5. The provisions of 10 CFR 30.35, 40.36, and 70.25
are a matter of compatibility with the Agreement States.
Regulatory references: 10 CFR 30.35, 10 CFR 40.36, 10 CFR
Subject codes: 5.8, 9.0, 12.2
Applicability: Byproduct, Source, and Special Nuclear