Nev. Admin. Code § 459.1955 - Preparation for decommissioning: Plan for financing; financial assurance; records
1. A plan for
financing decommissioning, as described in subsection 10, must be submitted by
each applicant for a license authorizing the possession and use of:
(a) Unsealed radioactive materials with a
half-life of more than 120 days in quantities that exceed
105 times the applicable quantities set forth in NAC
459.362; or
(b) The involvement of a combination of
radionuclides when R divided by 105 is greater than
1.
2. A plan for
financing decommissioning, as described in subsection 10, must be submitted by
each licensee who is authorized to possess and use, and each applicant for a
specific license authorizing the possession and use of:
(a) Sealed sources of radioactive material or
plated foils of radioactive material with a half-life of more than 120 days in
quantities that exceed 1012 times the applicable quantities set forth in NAC
459.362; or
(b) The involvement of a combination of
isotopes when R divided by 1012 is greater than 1.
3. Each applicant for a specific license that
authorizes the possession and use of radioactive material with a half-life of
more than 120 days and in the quantities set forth in subsection 9 must submit:
(a) A plan for financing decommissioning as
described in subsection 10; or
(b)
A certification which sets forth that financial assurance for decommissioning:
(1) Has been provided in the amount required
by subsection 9 using one of the methods set forth in subsection 12;
or
(2) Will be provided after the
application has been approved and the license issued, but before the receipt of
any licensed material by the licensee.
4. If an applicant:
(a) Defers the execution of the financial
instrument until after the license has been issued pursuant to subparagraph (2)
of paragraph (b) of subsection 3, the applicant must submit to the Division as
part of the certification a signed original of the financial instrument used to
comply with subsection 12 before the receipt of any licensed
material.
(b) Does not defer the
execution of the financial instrument until after the license has been issued,
the applicant must submit to the Division as part of the certification a signed
original of the financial instrument used by the applicant to comply with
subsection 12.
5. An
applicant for a specific license of the type described in subsection 1 or 3
must submit a plan for financing decommissioning or a certification of
financial assurance for decommissioning with his or her application.
6. The holder of a specific license that is
issued before January 26, 1999, and:
(a) Of a
type described in subsection 1, shall submit a plan for financing
decommissioning or a certification of financial assurance for decommissioning
in an amount not less than $1,125,000. If a certification of financial
assurance is submitted, the licensee shall include a plan for financing
decommissioning in an application for renewal of the license.
(b) Of a type described in subsection 3,
shall submit a plan for financing decommissioning or a certification of
financial assurance for decommissioning.
7. A licensee who has submitted an
application for renewal of his or her license before January 26, 1999, in
accordance with NAC
459.202, shall:
(a) Provide financial assurance for
decommissioning in accordance with subsections 1 and 3; and
(b) Submit a plan for financing
decommissioning.
8.
Waste collectors and waste processors, as defined in Appendix G, shall:
(a) Provide financial assurance for
decommissioning in an amount based on a plan for financing decommissioning as
described in subsection 10; and
(b)
Submit a plan for financing decommissioning which must include, without
limitation:
(1) The cost of disposal of the
maximum amount, measured in curies, of radioactive material permitted by the
license;
(2) The cost of disposal
of the maximum quantity, measured by volume, of radioactive material which
could be present at the licensee's facility at any time; and
(3) The cost to remediate the licensee's site
to meet the license termination criteria set forth in NAC
459.200.
9. Financial assurance for
decommissioning must be provided in accordance with the following amounts:
(a) Not less than $1,125,000 is required if:
(1) The amount of radioactive material is
greater than 104, but less than or equal to
105 times the applicable quantities described in NAC
459.362, in unsealed form;
or
(2) R, for a combination of
radionuclides, divided by 104 is greater than 1 but
R divided by 105 is less than or equal to
1.
(b) Not less than
$225,000 is required if:
(1) The amount of
radioactive material is greater than 103, but less
than or equal to 104 times the applicable quantities
described in NAC
459.362, in unsealed form;
or
(2) R, for a combination of
radionuclides, divided by 103 is greater than 1 but
R divided by 104 is less than or equal to
1.
(c) Not less than
$113,000 is required if:
(1) The amount of
radioactive material is greater than 1010 times the
applicable quantities described in NAC
459.362, in sealed sources or
plated foils; or
(2) R, for a
combination of radionuclides, divided by 1010 is
greater than 1.
10. Each plan for financing decommissioning
must be submitted for review and approval by the Division and must contain the
following:
(a) A detailed estimate of the
costs of decommissioning the facility in an amount which reflects:
(1) The cost of an independent vendor who is
licensed to perform radiological decommissioning and has the capability and
expertise in radiological decommissioning to perform all decommissioning
activities;
(2) The cost of
satisfying the criteria set forth in NAC
459.3178 for unrestricted use,
provided that, if the applicant or licensee can demonstrate his or her ability
to satisfy the requirements of NAC
459.318, the cost estimate may be
based on satisfying the criteria set forth in NAC
459.318;
(3) The volume of on-site subsurface material
containing residual radioactivity that will require remediation to meet the
criteria for license termination; and
(4) An adequate contingency factor;
(b) Identification of and
justification for using the key assumptions contained in the cost estimate for
decommissioning the facility;
(c) A
description of the method of assuring financing for decommissioning in
compliance with subsection 12, including, without limitation, the means for
adjusting the estimate of costs and associated levels of funding 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 subsection 12,
unless a previously submitted and accepted financial instrument continues to
cover the cost estimate for decommissioning.
11. At the time of renewal of the license and
at intervals not to exceed 3 years, the plan for financing decommissioning must
be resubmitted to the Division 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 must not be done until the updated
plan for financing decommissioning is approved by the Division. The plan for
financing decommissioning must update the information submitted with the
original or previously approved plan and must specifically consider the effect
of the following events on the cost estimate for decommissioning:
(a) Spills of radioactive material producing
additional residual radioactivity in on-site subsurface material;
(b) An increase in waste inventory above the
amount previously estimated;
(c) An
increase in waste disposal costs above the amount previously
estimated;
(d) Modifications of the
facility;
(e) Changes in the limits
of radioactive materials which the licensee is authorized to possess and
use;
(f) Actual costs of
remediation if those costs exceed the amount of costs previously
estimated;
(g) On-site disposal;
and
(h) Use of a settling
pond.
12. Financial
assurance for decommissioning must be provided by one or more of the following
methods:
(a) Prepayment in the form of a
deposit of an amount of money in cash or liquid assets that would be sufficient
to pay the costs of decommissioning before starting operations at the facility
into an account segregated from the assets of the licensee and outside the
administrative control of the licensee. Prepayment may be in the form of a
trust, escrow account, government fund, certificate of deposit or deposit of
government securities.
(b)
Provision of a surety that assures that the costs of decommissioning will be
paid should the licensee fail to do so. A guarantee of money from a parent
company of the licensee for the cost of decommissioning that is based on a
financial test may be used if the guarantee and test meet the criteria set
forth in subsection 15. Such a guarantee may not be used in combination with
any other method of financing to satisfy the requirements of this subsection. A
guarantee of money by the applicant or licensee for the cost of decommissioning
that is based on a financial test may be used if the guarantee and test meet
the criteria set forth in subsection 15. Such a guarantee must not be used in
combination with any other method of financing to satisfy the requirements of
this subsection or if the applicant or licensee has a parent company that holds
a majority control of the voting stock of the applicant or licensee. Any surety
used to provide financial assurance for decommissioning must contain the
following conditions:
(1) The surety must be
open-ended or, if written for a specified term, must be renewed automatically
unless 90 days or more before the renewal date the issuer notifies the
Division, the beneficiary and the licensee of his or her intention not to
renew. The surety must provide that the full-face amount will be paid to the
beneficiary automatically before the expiration without proof of forfeiture if
the licensee fails to provide a replacement acceptable to the Division within
30 days after receipt of notification of the cancellation.
(2) The surety must be payable to a trust
established for the costs of decommissioning the facility. The trustee and
trust must be approved by the Division. The Division will approve as a trustee
an appropriate agency of the State or Federal Government or an entity which has
the authority to act as a trustee and whose trust operations are regulated and
examined by an agency of the State or Federal Government.
A licensee shall maintain the surety in effect until the Division has terminated his or her license.
(c)
Provision of an external sinking fund in which deposits are made at least
annually, coupled with a surety issued in compliance with the provisions of
paragraph (b) except that the value of the surety may decrease by the amount
being accumulated in the external sinking fund.
(d) If the licensee is a federal, state or
local governmental agency, a statement of intent containing an estimate of the
costs of decommissioning or an amount required by subsection 9 and an
indication that money for decommissioning will be obtained when
necessary.
13. A person
licensed pursuant to NAC
459.180 to
459.313, inclusive, and sections
7 to 27, inclusive shall maintain the following records in an identified
location until the site is released for unrestricted use:
(a) Records of spills or other unusual
occurrences involving the spread of contamination in and around the facility,
equipment or site. Such records must include, without limitation, the name,
quantity, form and concentration of a nuclide involved in the spill or unusual
occurrence.
(b) Drawings and other
documents relating to:
(1) The modification of
structures and equipment in restricted areas where radioactive materials are
used and stored; and
(2) Locations
where it is possible that contamination which is inaccessible has occurred,
including, without limitation, areas of seepage into concrete and other porous
materials.
(c) A list of
all the areas:
(1) Designated and formerly
designated as restricted areas;
(2)
Outside of restricted areas that require documentation pursuant to paragraph
(a);
(3) Outside of restricted
areas where waste has been buried; and
(4) Outside of restricted areas which contain
material that, if the license expired, the licensee would be required to
decontaminate the area to unrestricted release levels or apply for approval for
disposal pursuant to NAC
459.3595.
(d) Except for areas containing only sealed
sources which have not leaked or where no contamination remains after any leak,
or for by-product material having only a half-life of less than 65 days, a list
contained in a single document and updated every 2 years which sets forth the
following:
(1) All areas designated or
formerly designated as restricted areas as defined in
10
C.F.R. §
20.1003, or for requirements
before January 1, 1994, 10 C.F.R. § 20.3 as contained in the C.F.R.
edition revised as of January 1, 1993;
(2) All areas outside of restricted areas
that require documentation pursuant to paragraph(a);
(3) All areas outside of restricted areas
where current and previous wastes have been buried as documented pursuant to
10 C.F.R. §
20.2108; and
(4) 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 set forth in 10 C.F.R. Part 20, Subpart E, or apply for
approval for disposal under
10
C.F.R. §
20.2002.
If records important to the decommissioning of a facility are kept for other purposes, reference to these records and their locations may be used.
14. Before licensed
activities are transferred or assigned pursuant to subsection 2 of NAC
459.198, the licensee must
transfer all the records described in paragraphs (a), (b), (c) and (d) of
subsection 13 to the licensee to whom the activities have been transferred or
assigned. Such records become, upon receipt, the responsibility of the licensee
to whom the activities have been transferred or assigned and must be retained
by that licensee until its license is terminated.
15. To pass the financial test referred to in
subsection 12:
(a) A parent company must have:
(1) Two of the following three ratios:
(I) A ratio of total liabilities to net worth
that is less than 2;
(II) A ratio
of the sum of net income plus depreciation, depletion and amortization to total
liabilities that is more than 0.1; and
(III) A ratio of current assets to current
liabilities that is more than 1.5;
(2) Net working capital and tangible net
worth that are each at least six times the current cost estimates for
decommissioning or, if certification is used, the amount set forth in
subsection 9; and
(3) Assets
located in the United States that amount to at least 90 percent of the total
assets of the parent company or at least six times the cost estimate for
decommissioning or, if certification is used, the amount set forth in
subsection 9; or
(b) A
parent company must have:
(1) A rating for its
most recent bond issuance of AAA, AA, A or BBB as issued by Standard and Poor's
Ratings Services or a rating of Aaa, Aa, A or Baa as issued by Moody's
Investors Service, Inc.;
(2)
Tangible net worth of at least six times the current cost estimate for
decommissioning, or, if a certification is used, the amount set forth in
subsection 9; and
(3) Assets
located in the United States that amount to at least 90 percent of the total
assets of the parent company or at least six times the cost estimate for
decommissioning.
16. The terms of a guarantee of a parent
company must provide that:
(a) The guarantee
will remain in force unless the guarantor sends notice of cancellation by
certified mail to the licensee and the Division. The guarantee may not be
cancelled until 120 days after the date the notice of cancellation is received
by both the licensee and the Division, as evidenced by the return
receipts.
(b) If the licensee fails
to provide alternate financial assurance as specified in this section within 90
days after receipt by the licensee and the Division of a notice of cancellation
of the guarantee from the guarantor, the guarantor must provide such alternate
financial assurance in the name of the licensee.
(c) The guarantee and financial test
provisions set forth in subsection 15 must remain in effect until the Division
has terminated the license.
(d) If
a trust is established for the costs of decommissioning, the trustee and trust
must be acceptable to the Division. An acceptable trustee includes an
appropriate state or federal agency or an entity that has the authority to act
as a trustee and whose trust operations are regulated and examined by a federal
or state agency.
17. A
licensee who guarantees the costs of decommissioning must have:
(a) A tangible net worth of at least 10 times
the total estimated cost of decommissioning or the current amount required for
decommissioning;
(b) Assets located
in the United States that amount to at least 90 percent of its total assets or
at least 10 times the cost estimate for decommissioning;
(c) A rating for its most recent bond
issuance of AAA, AA or A as issued by Standard and Poor's Ratings Services or a
rating of Aaa, Aa or A as issued by Moody's Investors Service, Inc.;
and
(d) At least one class of
equity securities registered pursuant to the Securities Exchange Act of
1934.
18. A licensee
shall ensure that a certified public accountant who is independent of the
licensee compares the data used to satisfy the financial test as set forth in
subsections 15 and 17. The data must be derived from audited, year-end
financial statements for the last fiscal year. A licensee shall inform the
Division within 90 days after matters which cause the certified public
accountant to believe that the data used to satisfy the financial test should
be adjusted and that the licensee or parent company, as applicable, can no
longer pass the test. After the initial financial test, the licensee or parent
company, as applicable, shall repeat the test within 90 days after the close of
each fiscal year. If the parent company can no longer pass the test, the
licensee shall notify the Division of its intent to establish alternate
financial assurance as specified in this section. The notice must be sent by
certified mail within 90 days after the close of the fiscal year. The licensee
shall provide alternate financial assurance within 120 days after the close of
such fiscal year.
19. If a bond
issuance of the licensee or parent company, as applicable, ceases to be rated
in a category of A or above by either Standard and Poor's Ratings Services or
Moody's Investors Service, Inc., the licensee shall notify the Division in
writing within 20 days after the rating. If the bond issuance ceases to be
rated in a category of A or above by both Standard and Poor's Ratings Services
and Moody's Investors Service, Inc., the licensee or parent company, as
applicable, no longer meets the financial test as set forth in subsection
15.
20. The licensee shall provide
to the Division a written guarantee or commitment by a corporate officer which
provides that the licensee will fund and complete the decommissioning of the
facility or, upon issuance of an order by the State Board of Health, the
licensee shall establish a trust in the amount of the current cost estimates
for decommissioning.
21. As used in
this section:
(a) "External sinking fund"
means a fund established and maintained by depositing money periodically in an
account segregated from the licensee's assets and outside the licensee's
administrative control in which the total amount of money to be accumulated
before the termination of the operation is expected is sufficient to pay the
costs of decommissioning. The term includes, without limitation, a trust,
escrow account, government fund, certificate of deposit or deposit of
government securities.
(b) "R"
equals the sum of the ratios of the quantity of each radionuclide to the
applicable value as set forth in NAC
459.362.
(c) "Surety" includes, without limitation, a
trust fund, surety bond, letter of credit, line of credit, insurance, guarantee
of performance or, except as otherwise provided in this section, any
combination thereof.
Notes
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