§ 70.25 Financial assurance and recordkeeping for decommissioning.
(a) Each applicant for a specific license of the types described in paragraphs (a)(1) and (2) of this section shall submit a decommissioning funding plan as described in paragraph (e) of this section.
(1) A specific license for a uranium enrichment facility;
(2) A specific license authorizing the possession and use of unsealed special nuclear material in quantities exceeding 105 times the applicable quantities set forth in appendix B to part 30. A decommissioning funding plan must also be submitted 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 B to part 30.
(b) Each applicant for a specific license authorizing possession and use of unsealed special nuclear material in quantities specified in paragraph (d) of this section shall either--
(1) Submit a decommissioning funding plan as described in paragraph (e) of this section; or
(2) Submit a certification that financial assurance for decommissioning has been provided in the amount prescribed by paragraph (d) of this section using one of the methods described in paragraph (f) 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 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 (f) of this section must be submitted to NRC before receipt of licensed material. If the applicant does not defer execution of the financial instrument, the applicant shall submit to NRC, as part of the certification, a signed original of the financial instrument obtained to satisfy the requirements of paragraph (f) of this section.
(c)(1) Each holder of a specific license issued on or after July 27, 1990, which is of a type described in paragraph (a) or (b) of this section, shall provide financial assurance for decommissioning in accordance with the criteria set forth in this section.
(2) Each holder of a specific license issued before July 27, 1990, and of a type described in paragraph (a) of this section shall submit a decommissioning funding plan as described in paragraph (e) of this section 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.
(3) Each holder of a specific license issued before July 27, 1990, and of a type described in paragraph (b) of this section shall submit, on or before July 27, 1990, a decommissioning funding plan, described in paragraph (e) of this section, or a certification of financial assurance for decommissioning in accordance with the criteria set forth in this section.
(4) Any licensee who has submitted an application before July 27, 1990, for renewal of license in accordance with § 70.33 shall provide financial assurance for decommissioning in accordance with paragraphs (a) and (b) of this section. This assurance must be submitted when this rule becomes effective November 24, 1995.
(5) If, in surveys made under 10 CFR
20.1501(a), residual radioactivity in the
facility and environment, including the
subsurface, is detected at levels that
would, if left uncorrected, prevent the
site from meeting the 10 CFR 20.1402
criteria for unrestricted use, the licensee
must submit a decommissioning
funding plan within one year of when
the survey is completed
(d) Table of required amounts of financial assurance for decommissioning by quantity of material. Licensees required to submit the $1,125,000 amount must do so by December 2, 2004. Licensees required to submit the $225,000 amount must do so by June 2, 2005. Licensees having possession limits exceeding the upper bounds of this table must base financial assurance on a decommissioning funding plan.
| greater than 104 but less than or equal to 105 times the applicable quantities of appendix B to part 30. (For a combination of isotopes, if R, as defined in § 70.25(a), divided by 104 is greater than 1 but R divided by 105 is less than or equal to 1.) | $1,125,000 |
| greater than 103 but less than or equal to 104 times the applicable quantities of appendix B to part 30. (For a combination of isotopes, if R, as defined in § 70.25(a), divided by 103 is greater than 1 but R divided by 104 is less than or equal to 1.) | $225,000 |
(e)(1) Each decommissioning funding plan must be submitted for review and approval and must contain—
(i) A detailed cost estimate for decommissioning, in an amount reflecting:
(A) The cost of an independent contractor to perform all decommissioning activities;
(B) The cost of meeting the 10 CFR 20.1402 criteria for unrestricted use, provided that, if the applicant or licensee can demonstrate its ability to meet the provisions of 10 CFR 20.1403, the cost estimate may be based on meeting the 10 CFR 20.1403 criteria;
(C) The volume of onsite subsurface material containing residual radioactivity that will require remediation; and
(D) An adequate contingency factor.
(ii) Identification of and justification for using the key assumptions contained in the DCE;
(iii) A description of the method of assuring funds for decommissioning from paragraph (f) of this section, including means for adjusting cost estimates and associated funding levels periodically over the life of the facility;
(iv) A certification by the licensee that financial assurance for decommissioning has been provided in the amount of the cost estimate for decommissioning; and
(v) A signed original, or, if permitted,
a copy, of the financial instrument
obtained to satisfy the requirements of
paragraph (f) of this section (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 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 can not 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:
(i) Spills of radioactive material producing additional residual radioactivity in onsite subsurface material;
(ii) Waste inventory increasing above the amount previously estimated;
(iii) Waste disposal costs increasing above the amount previously estimated;
(iv) Facility modifications;
(v) Changes in authorized possession limits;
(vi) Actual remediation costs that exceed the previous cost estimate;
(vii) Onsite disposal; and
(viii) Use of a settling pond.
(f) 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. Financial assurance for decommissioning must be provided by one or more of the following methods:
(1) Prepayment. Prepayment is the
deposit before 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
must be made into a trust account, and
the trustee and the trust must be
acceptable to the Commission.
(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, or letter 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 A to this part. 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 this part. 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 this part.
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 this part. Except for an external
sinking fund, a parent company
guarantee or 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 section. A
guarantee by the applicant or licensee
may not be used 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 issurer notifies the Commission, 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 Commission 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 Commission. 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 Commission has terminated the license.
(3) An external sinking fund in which deposits are made at least annually, coupled with a surety method, insurance, or other guarantee method, 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 must be in the form of a trust. If the other guarantee method is used, no surety or insurance may be combined with the external sinking fund. The surety, insurance, or other guarantee provisions must be as stated in paragraph (f)(2) of this section.
(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 paragraph (d) of this section, and indicating that funds for decommissioning will be obtained when necessary.
(5) When a governmental entity is assuming custody and ownership of a site, an arrangement that is deemed acceptable by such governmental entity.
(g) Each person licensed under this part shall keep records of information important to the decommissioning of a facility in an identified location until the site is released for unrestricted use. 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 Commission 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 only sealed sources (provided the sources have not leaked or no contamination remains after cleanup of any leak), a list contained in a single document and updated every 2 years, of the following:
(i) All areas designated and formerly designated as restricted areas as defined under 10 CFR 20.1003 (For requirements prior to January 1, 1994, see 10 CFR 20.3 as contained in the CFR edition revised as of January 1, 1993.);
(ii) All areas outside of restricted areas that require documentation under § 70.25(g)(1);
(iii) All areas outside of restricted areas where current and previous wastes have been buried as documented under 10 CFR 20.2108; and
(iv) 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 10 CFR part 20, subpart E, or apply for approval for disposal under 10 CFR 20.2002.
(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.
(h) In providing financial assurance under this section, each licensee must use the financial assurance funds only for decommissioning activities and each licensee must monitor the balance of funds held to account for market variations. The licensee must replenish the funds, and report such actions to the NRC, as follows:
(1) If, at the end of a calendar quarter,
the fund balance is below the amount
necessary to cover the cost of
decommissioning, but is not below 75
percent of the cost, the licensee must
increase the balance to cover the cost,
and must do so within 30 days after the
end of the calendar quarter.
(2) If, at any time, the fund balance
falls below 75 percent of the amount
necessary to cover the cost of
decommissioning, the licensee must
increase the balance to cover the cost,
and must do so within 30 days of the
occurrence.
(3) Within 30 days of taking the actions required by paragraph (h)(1) or (h)(2) of this section, the licensee must provide a written report of such actions to the Director, Office of Federal and State Materials and Environmental Management Programs, and state the new balance of the fund.
[53 FR 24053, June 27, 1988, as amended at 56 FR 23474, May 21, 1991; 57 FR 18393, Apr. 30, 1992; 58 FR 39634, July 26, 1993; 58 FR 67662, Dec. 22, 1993; 58 FR 68731, Dec. 29, 1993; 59 FR 1618, Jan. 12, 1994; 60 FR 38239, July 26, 1995; 61 FR 24675, May 16, 1996; 62 FR 39091, July 21, 1997; 63 FR 29544, June 1, 1998; 68 FR 57337, Oct. 3, 2003; 76 FR 35572, Jun. 17, 2011]
