[Federal Register Volume 60, Number 143 (Wednesday, July 26, 1995)]
[Rules and Regulations]
[Pages 38234-38240]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18315]
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[[Page 38235]]
NUCLEAR REGULATORY COMMISSION
10 CFR Parts 30, 40, 70, and 72
RIN 3150-AE95
Clarification of Decommissioning Funding Requirements
AGENCY: Nuclear Regulatory Commission.
ACTION: Final rule.
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SUMMARY: The Nuclear Regulatory Commission is amending its regulations
applicable to decommissioning funding assurance and the expiration and
termination of licenses for nonreactor licensees. These amendments
clarify requirements that financial assurance must be in place during
licensed operations and updated when the licensee decides to cease
operations and begin decommissioning. These regulations require that
licensees who have been in timely renewal since the promulgation of the
earlier decommissioning funding rule or who have ceased operation
without having adequate decommissioning funding arrangements in place
must provide the NRC with certification of adequate financial assurance
for decommissioning by the effective date of this rule.
EFFECTIVE DATE: November 24, 1995.
FOR FURTHER INFORMATION CONTACT: Mary L. Thomas, Office of Nuclear
Regulatory Research, U.S. Nuclear Regulatory Commission, Washington, DC
20555-0001, telephone (301) 415-6230, E-mail [email protected]
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background.
II. Summary of requirements and discussion of comments.
III. Agreement State compatibility.
IV. Implementation.
V. Environmental impact: Categorical Exclusion.
VI. Paperwork reduction act statement.
VII. Regulatory analysis.
VIII. Regulatory flexibility certification.
IX. Backfit analysis.
I. Background
In 1983, the Commission amended 10 CFR parts 30, 40, and 70 to add
requirements addressing ``Expiration and Termination of Licenses'' (10
CFR 30.36, 40.42, and 70.38 (48 FR 32324; July 15,1983)). Similar
provisions were added to 10 CFR part 72 (10 CFR 72.54 (53 FR 24018;
June 27, 1988)). These requirements set out the procedures to be
followed by a licensee who decides to decommission a facility and seek
termination of the applicable license. If a part 30, 40, 70, or 72
licensee has more than a modest amount of radioactive contamination to
remediate, the licensee is required to submit a decommissioning plan
that sets out the methods and measures for decontamination of the
property and equipment.
In the final rule published June 27, 1988, the Commission addressed
``Financial Assurance and Recordkeeping for Decommissioning'' (10 CFR
30.35, 40.36, 70.25 and 72.30 (53 FR 24018; June 27,1988)). The rule
established a graded structure for financial assurance that is based on
the assumption that the kinds and quantities of radioactive materials
authorized in the license provide a reasonably good correlation to the
amount of contamination that has to be remediated. Before the license
is issued or renewed, the applicant shall provide financial assurance
in one or more of the forms required by the rule (prepayment, surety,
insurance or other guarantee, or external sinking fund with a backup
surety).
The June 27, 1988, rule also required that certain licensees, upon
their decision to cease operations, must submit decommissioning plans
that include an updated detailed cost estimate for decommissioning, a
comparison of that estimate with present funds set aside for
decommissioning, and a plan for assuring the availability of adequate
funds for the completion of decommissioning.
II. Summary of Requirements and Discussion of Comments
At the time the decommissioning funding rules were promulgated, it
was not anticipated that a licensee would move to decommissioning
without having complied with the financial assurance requirements.
Since that time a number of licensees who were in timely renewal when
the June 27, 1988, rule became effective have decided to terminate
their activities and begin decommissioning. Other licensees who only
provided certification for the minimum amounts of financial assurance
have also decided to terminate activities and begin decommissioning. In
both situations, insufficient funding was in place when the licensee
ceased operations and began decommissioning. These amendments require
that financial assurances must be in place and updated when the
licensee decides to cease operations and begin decommissioning to
assure that adequate funding is available in the event the licensee is
no longer financially viable.
Six comment letters were received on the proposed rule. This
section presents a summary of the requirements in the proposed rule and
a discussion of the significant issues raised by public comment and how
they were resolved. The bases and origins of the requirements are also
explained. The proposed rule was discussed during the October 25-27,
1993 Agreement States meeting in Tempe, Arizona. No additional comments
were received from the Agreement States during the public comment
period. In addition, the draft final rule was sent out to the Agreement
States for comment regarding the division of compatibility assigned on
April 14, 1995. The comment period ended May 15, 1995. Five comment
letters were received. These comment letters are addressed in section
III, Agreement State Compatibility, of the Federal Register Notice.
Copies of the public comments received on the proposed rule are
available for inspection and copying for a fee at the NRC Public
Document Room, 2120 L Street NW. (Lower Level), Washington, DC 20037.
1. Submission of an Executed Original Copy of the Financial Instrument
As proposed, Secs. 30.35(b)(2), 40.36(b)(2), 70.25(b)(2) would
require each licensee to submit an executed original copy of the
financial instrument obtained to satisfy the requirements of
Secs. 30.35(f), 40.36(e), or 70.25(f) respectively. Sections 30.35(c)
(2 and 3), 40.36(c) (2 and 3), and 70.25(c) (2 and 3) would require
that the licensee submit a decommissioning funding plan as described in
paragraph (e) of these sections. Sections 30.35(e), 40.36(d), and
70.25(e) would require the decommissioning funding plan to include a
cost estimate and a signed original of the financial instrument
obtained to satisfy the requirements of Secs. 30.35(f), 40.36(e), or
70.25(f) respectively.
Comments: One commenter stated that the requirement means that
every time a licensee restructures the finances that support the
decommissioning funding requirement, it would have to file a report
with the NRC. Another commenter stated that the requirement to submit
an executed original of the financial instrument obtained to satisfy
the decommissioning funding requirement is overly burdensome and can
easily lead to confusion and excess paper work. In addition, this
commenter stated that some licensees may have multiple funding sources
with different renewal dates and that every time a
[[Page 38236]]
licensee restructures financially, it will have to submit new
documentation that the funding for decommissioning is provided. Both
commenters suggested that the licensee should be able to provide a
single certification to the NRC stating the funding is available to
cover the decommissioning costs.
Response: Submittal of this information will only be necessary in
the event the old instruments would no longer be valid. The language of
the final rule has been changed to state that licensees will be
required to submit a signed original rather than an executed original
copy of the financial instrument to make it clear that the signed
original is sufficient provided that it contains the appropriate
signatures.
2. Decommissioning Funding Plan
As proposed, Secs. 30.35(c)(4), 40.36(c)(4), and 70.25(c)(4) would
require licensees who have submitted a renewal application before June
27, 1990, to submit a decommissioning funding plan.
Comments: One commenter believes this is a retroactive requirement
and that licensees who have applied for renewal should not be required
to have funding in place.
Response: Although this requirement was not included in the June
27, 1988, decommissioning rule the Commission anticipated that few
licensees would not have funding in place within the normal license
renewal frequency of 5 years. A small number of licensees who were in
timely renewal when the rule became effective still have not provided
assurance that they have adequately addressed the issue of
decommissioning funding. The licensees who have not provided a
decommissioning funding plan may have only submitted a certification
based on the table amounts listed in the June 27, 1988, rule which may
underestimate the actual cost to decommission their facility. This
requirement will ensure that these licensees will have adequate funding
in place through submittal of a decommissioning funding plan. The
requirement does not apply retroactively to make some prior conduct
improper. Rather, it provides that at a future date November 24, 1995
licensees currently in a ``timely renewal'' status must provide
financial assurance in accordance with these regulations.
3. Expiration and Termination of Licenses--90-Day Time Period
As proposed, Secs. 30.36(b)(2), 40.42(b)(2), 70.38(b)(2) and
72.54(b)(2) would require licensees, on providing a notice of
termination of activities and request to terminate the license, to
maintain in effect all decommissioning financial assurances and to
increase or decrease the amount of the financial assurance, as
appropriate, within 90 days of the above notice, to cover the detailed
cost estimate for decommissioning submitted with the proposed
decommissioning plan.
With the publication of the final rule, ``Timeliness in
Decommissioning of Materials Facilities,'' on July 15, 1994; 59 FR
36026, these sections were revised to require licensees to submit a
proposed decommissioning plan within 12 months of the time that they
notify the Commission that they have not conducted licensed activities
for 24 months or to commence decommissioning if they are not required
to submit a decommissioning plan. These requirements are now located in
Secs. 30.35(e), 40.42(e), 70.38(e) and 72.54(e) in this final rule.
Comments: Four commenters stated that they did not understand the
90-day time period to obtain financial assurance as discussed in the
proposed rule. One asked why a 90-day time period was chosen as opposed
to 180 days. Another indicated that the time period presumes that the
licensee's proposed decommissioning plan will be approved by the NRC
without modification.
Response: The final rule was modified to permit some additional
time for licensees who have already submitted a decommissioning plan to
update their financial assurance to meet the detailed cost estimate
included in the proposed decommissioning plan. The final rule will
require licensees to increase, or allow them to decrease, the amount of
financial assurance to correspond to the detailed cost estimate
submitted with the decommissioning plan. The NRC lengthened the time
period for obtaining financial assurance from 90 days to 120 days, but
did not adopt the comment to lengthen the time period to 180 days.
Because this requirement only addresses licensees who have already
submitted a decommissioning plan with an updated cost estimate, a
period of 120 days to acquire the funding seems to be a reasonable
amount of time and lowers the risk that any change in the licensee's
financial status could jeopardize their ability to provide for adequate
funding. For the aforementioned reason, the Commission did not adopt
the comment to permit time for NRC approval of the decommissioning
plan. It should be noted that a provision is included that would permit
a reduction in the amount of financial assurance following
decommissioning plan approval.
4. Frequency for Applying for Reduction in Funds
As proposed, Secs. 30.36(b)(2)(ii), 40.42(b)(2)(ii),
70.38(b)(2)(ii), and 72.54(b)(2)(ii) would allow licensees to apply for
a reduction in decommissioning funds with a reduction in radioactive
contamination levels as decommissioning proceeds. The proposed rule
would have established a semiannual frequency for these reductions.
Comments: One commenter stated that permitting access to the funds
only on a semiannual basis seemed unnecessarily restrictive. Another
commenter stated that this aspect of the rule appears to require that
funds be accessed prior to the performance of previously approved
decommissioning tasks for which the funds were intended to be used, and
that licensees be allowed to access the funds as they are needed.
Response: In response to comments, the NRC has revised the final
rule to remove restrictions in frequency for these requests. Currently,
a set amount of money is required in advance that must be available
through the end of decommissioning and could result in an unnecessary
burden on the licensee. This modification permits a reduction in these
funds provided the radioactive contamination has been reduced at the
site. Because licensees must obtain approval from the Commission to
reduce funds, there will be adequate assurance that the licensee has
sufficient funds available to cover the cost to complete
decommissioning of the facility. These requirements are now located in
Secs. 30.35(e)(2), 40.42(e)(2), 70.38(e)(2) and 72.54(e)(2) in this
final rule.
5. Small Entities
Comment: One commenter and the State of New York asked that small
entities be exempt from decommissioning financial assurance.
Response: The majority of small entities are already excepted from
the decommissioning funding requirements because they possess limited
quantities of radioactive materials. These amendments would not impact
the remainder of small entities that have already complied with the
applicable funding requirements.
III. Agreement State Compatibility
The draft final rule was sent out to the Agreement States on April
14, 1995 for comment. Five comment letters were received. The State of
Tennessee suggested that each individual State be allowed to establish
its own
[[Page 38237]]
methodology. The State of New York suggested that the rule give the
States the latitude to accomplish the rule's intent by other means such
as licensing actions. The State of Washington suggested that the rule
should be made Division 3 compatibility because the rule is addressing
financing, not health and safety; the rule overlooks other mechanisms
for protecting the public, such as whatever means necessary to effect
decommissioning; and the specific changes are applicable to NRC
licensees and not Washington licensees. The States of Nebraska and
Maryland suggested that the rule remain Division 2 compatibility.
The NRC has reviewed the definitions of divisions of Agreement
State compatibility and has considered the comments from the States and
has determined that the rule should be a matter of Division 2
compatibility between the Federal and State because these requirements
are the minimum requirements necessary to ensure adequate protection of
the public health and safety. Under this level of compatibility, the
Agreement States would be expected to adopt decommissioning funding
assurance requirements that are as stringent as NRC's, but would be
permitted flexibility to apply more stringent requirements if deemed
appropriate by the State.
IV. Implementation
This rule will become effective 120 days after publication in the
Federal Register. Thus, licensees who do not currently have sufficient
financial assurance for decommissioning, but who currently have
submitted decommissioning plans or are in timely renewal, have 120 days
to revise and submit to NRC their financial arrangements for funding
decommissioning.
V. Environmental Impact: Categorical Exclusion
The NRC has determined that this rule is the type of action
described in categorical exclusion 10 CFR 51.22(c)(2). Therefore,
neither an environmental impact statement nor an environmental
assessment was prepared for this rule.
VI. Paperwork Reduction Act Statement
This final rule amends information collection requirements that are
subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501, et
seq.). These requirements were approved by the Office of Management and
Budget approval numbers 3150-0009, -0017, -0020, and -0132.
The public reporting burden for this collection of information is
estimated to average 6 hours per response, including time for reviewing
instruction, searching existing data sources, gathering and maintaining
the data needed, and completing and reviewing the collection of
information. Send comments regarding this burden estimate or any other
aspect of this collection of information, including suggestion for
reducing the burden, to the Information Records and Management Branch
(T-6-F33), U.S. Nuclear Regulatory Commission, Washington, DC 20555-
0001, and to the Desk Officer, Office of Information and Regulatory
Affairs, NEOB-10202, (3150-0017, 3150-0020, 3150-0009, and 3150-0132),
Office of Management and Budget, Washington, DC 20503.
VII. Regulatory Analysis
The Commission has prepared this regulation to clarify its
decommissioning funding requirements for persons licensed under Parts
30, 40, 70, and 72. Although it does alter existing requirements, the
regulatory analyses developed in support of prior decommissioning
regulations remain valid and appropriate for this rulemaking because
these analyses assumed that all licensees would submit a certification
of financial assurance to the NRC of a rule prescribed amount, or
licensee estimated and NRC approved amount, necessary to provide
adequate funds to decommission the licensed facility and that licensees
would have complied with the decommissioning funding requirements prior
to ceasing operations and commencing decommissioning. These prior
analyses, developed for the rules on expiration and termination of
licenses and financial assurances for decommissioning, remain available
for inspection in the NRC Public Document Room, 2120 L Street, NW.
(Lower Level), Washington, DC. This discussion constitutes the
regulatory analysis for this rule.
VIII. Regulatory Flexibility Certification
As required by the Regulatory Flexibility Act of 1980, 5 U.S.C.
605(b), the NRC carefully considered the effect on small entities in
developing the final rule on decommissioning funding and scaled the
requirements to reduce the impact on small entities to the extent
possible while adequately protecting health and safety. Because this
action imposes no new financial burden, it is not expected to have an
impact on licensees not already considered in the regulatory
flexibility analysis for the decommissioning funding rule as published
in the Federal Register on June 27, 1988 (53 FR 24018).
Accordingly, the Commission certifies that this rule will not have
any additional significant economic impact upon a substantial number of
small entities.
IX. Backfit Analysis
The NRC has determined that the backfit rule, 10 CFR 50.109, does
not apply to this rule, and therefore, a backfit analysis is not
required for this rule because these amendments do not involve any
provisions which would impose backfits as defined in 10 CFR
50.109(a)(1).
List of Subjects
10 CFR Part 30
Byproduct material, Criminal penalties, Government contracts,
Intergovernmental relations, Isotopes, Nuclear materials, Radiation
protection, Reporting and recordkeeping requirements.
10 CFR Part 40
Criminal penalties, Government contracts, Hazardous materials -
transportation, Nuclear materials, Reporting and recordkeeping
requirements, Source material, Uranium.
10 CFR Part 70
Criminal penalties, Hazardous materials--transportation, Material
control and accounting, Nuclear materials, Packaging and containers.
Radiation protection, Reporting and recordkeeping requirements,
Scientific equipment, Security measures, Special nuclear material.
10 CFR Part 72
Criminal penalties, Manpower training programs, Nuclear materials,
Occupational safety and health, Reporting and recordkeeping
requirements, Security measures, and Spent fuel.
For the reasons set out in the preamble and under the authority of
the Atomic Energy Act of 1954, as amended, the Energy Reorganization
Act of 1974, as amended, and 5 U.S.C. 552 and 553, the NRC is adopting
the following amendments to 10 CFR parts 30, 40, 70, and 72.
[[Page 38238]]
PART 30--RULES OF GENERAL APPLICABILITY TO DOMESTIC LICENSING OF
BYPRODUCT MATERIAL
1. The authority citation for part 30 continues to read as follows:
Authority: Secs. 81, 82, 161, 182, 183, 186, 68 Stat. 935, 948,
953, 954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42
U.S.C. 2111, 2112, 2201, 2232, 2233, 2236, 2282); secs. 201, as
amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C.
5841, 5842, 5846).
Section 30.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat.
2951 as amended by Pub. L. 102-486, sec. 2902, 106 Stat. 3123 (42
U.S.C. 5851). Section 30.34(b) also issued under sec. 184, 68 Stat.
954, as amended (42 U.S.C. 2234). Section 30.61 also issued under
sec. 187, 68 Stat. 955 (42 U.S.C. 2237).
2. Section 30.35 is amended by revising paragraphs (b)(2), (c)(2),
(c)(3), and (e) and by adding a new paragraph (c)(4) to read as
follows:
Sec. 30.35 Financial assurance and recordkeeping for decommissioning.
* * * * *
(b) * * *
(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) * * *
(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,
on or before July 27, 1990, 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 $750,000
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 as
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 Sec. 30.37 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.
* * * * *
(e) Each decommissioning funding plan must contain a cost estimate
for decommissioning and 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. The decommissioning funding plan must
also contain a certification by the licensee that financial assurance
for decommissioning has been provided in the amount of the cost
estimate for decommissioning and a signed original of the financial
instrument obtained to satisfy the requirements of paragraph (f) of
this section.
* * * * *
3. Section 30.36 is amended by redesignating paragraphs (e) through
(j) as (f) through (k) and adding a new paragraph (e) to read as
follows:
Sec. 30.36 Expiration and termination of licenses and decommissioning
of sites and separate buildings or outdoor areas.
* * * * *
(e) Coincident with the notification required by paragraph (d) of
this section, the licensee shall maintain in effect all decommissioning
financial assurances established by the licensee pursuant to Sec. 30.35
in conjunction with a license issuance or renewal or as required by
this section. The amount of the financial assurance must be increased,
or may be decreased, as appropriate, to cover the detailed cost
estimate for decommissioning established pursuant to paragraph
(g)(4)(v) of this section.
(1) Any licensee who has not provided financial assurance to cover
the detailed cost estimate submitted with the decommissioning plan
shall do so when this rule becomes effective November 24, 1995.
(2) Following approval of the decommissioning plan, a licensee may
reduce the amount of the financial assurance as decommissioning
proceeds and radiological contamination is reduced at the site with the
approval of the Commission.
* * * * *
PART 40--DOMESTIC LICENSING OF SOURCE MATERIAL
4. The authority citation for part 40 continues to read as follows:
Authority: Secs. 62, 63, 64, 65, 81, 161, 182, 183, 186, 68
Stat. 932, 933, 935, 948, 953, 954, 955, as amended, secs. 11e2, 83,
84, Pub. L. 95-604, 92 Stat. 3033, as amended, 3039, sec. 234, 83
Stat. 444, as amended (42 U.S.C. 2014(e)(2), 2092, 2093, 2094, 2095,
2111, 2113, 2114, 2201, 2232, 2233, 2236, 2282); sec. 274, Pub. L.
86-373, 73 Stat. 688 (42 U.S.C. 2021); secs. 201, as amended, 202,
206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842,
5846); sec. 275, 92 Stat. 3021, as amended by Pub. L. 97-415, 96
Stat. 2067 (42 U.S.C. 2022).
Section 40.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat.
2951 as amended by Pub. L. 102-486, sec. 2902, 106 Stat. 3123 (42
U.S.C. 5851). Section 40.31(g) also issued under sec. 122, 68 Stat.
939 (42 U.S.C. 2152). Section 40.46 also issued under sec. 184, 68
Stat. 954, as amended (42 U.S.C. 2234), Section 40.71 also issued
under sec. 187, 68 Stat. 955 (42 U.S.C. 2237).
5. Section 40.36 is amended by revising paragraphs (b)(2), (c)(2),
(c)(3), and (d) and by adding a new paragraph (c)(4) to read as
follows:
Sec. 40.36 Financial assurance and recordkeeping for decommissioning.
* * * * *
(b) * * *
(2) Submit a certification that financial assurance for
decommissioning has been provided in the amount of $150,000 using one
of the methods described in paragraph (e) 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 (e) of this section
must be submitted to NRC prior to 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
[[Page 38239]]
instrument obtained to satisfy the requirements of paragraph (e) of
this section.
(c) * * *
(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,
on or before July 27, 1990, a decommissioning funding plan as described
in paragraph (d) of this section or a certification of financial
assurance for decommissioning in an amount at least equal to $750,000
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, as
described in paragraph (d) 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 Sec. 40.43 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.
(d) Each decommissioning funding plan must contain a cost estimate
for decommissioning and a description of the method of assuring funds
for decommissioning from paragraph (e) of this section, including means
for adjusting cost estimates and associated funding levels periodically
over the life of the facility. The decommissioning funding plan must
also contain a certification by the licensee that financial assurance
for decommissioning has been provided in the amount of the cost
estimate for decommissioning and a signed original of the financial
instrument obtained to satisfy the requirements of paragraph (e) of
this section.
* * * * *
6. Section 40.42 is amended by redesignating paragraphs (e) through
(k) as (f) through (l) and adding a new paragraph (e) to read as
follows:
Sec. 40.42 Expiration and termination of licenses and decommissioning
of sites and separate or outdoor areas.
* * * * *
(e) Coincident with the notification required by paragraph (d) of
this section, the licensee shall maintain in effect all decommissioning
financial assurances established by the licensee pursuant to Sec. 40.36
in conjunction with a license issuance or renewal or as required by
this section. The amount of the financial assurance must be increased,
or may be decreased, as appropriate, to cover the detailed cost
estimate for decommissioning established pursuant to paragraph
(g)(4)(v) of this section.
(1) Any licensee who has not provided financial assurance to cover
the detailed cost estimate submitted with the decommissioning plan
shall do so when this rule becomes effective November 24, 1995.
(2) Following approval of the decommissioning plan, a licensee may
reduce the amount of the financial assurance as decommissioning
proceeds and radiological contamination is reduced at the site with the
approval of the Commission.
* * * * *
PART 70--DOMESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL
7. The authority citation for Part 70 continues to read as follows:
Authority: Secs. 51, 53, 161, 182, 183, 68 Stat. 929, 930, 948,
953, 954, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C.
2071, 2073, 2201, 2232, 2233, 2282); Secs. 201, as amended, 202,
204, 206, 88 Stat. 1242, as amended, 1244, 1245, 1246 (42 U.S.C.
5841), 5842, 5845, 5846).
Sections 70.1(c) and 70.20(b) also issued under secs. 135, 141
Pub. L. 97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161).
Section 70.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat.
2951 as amended by Pub. L. 102-486, sec. 2902, 106 Stat. 3123 (42
U.S.C. 5851). Section 70.21(g) also issued under sec. 122, 68 Stat.
939 (42 U.S.C. 2152). Section 70.31 also issued under sec. 57d, Pub.
L. 93-377, 86 Stat. 475 (42 U.S.C. 2077). Sections 70.36 and 70.44
also issued under sec. 184, 68 Stat. 954, as amended (42 U.S.C.
2234). Section 70.61 also issued under secs. 186, 187, 68 Stat. 955
(42 U.S.C. 2236, 2237). Section 70.62 also issued under sec. 106, 68
Stat. 939, as amended (42 U.S.C. 2138).
8. Section 70.25 is amended by revising paragraphs (b)(2), (c)(2),
(c)(3), and (e) and by adding a new paragraph (c)(4) to read as
follows:
Sec. 70.25 Financial assurance and recordkeeping for decommissioning.
* * * * *
(b) * * *
(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) * * *
(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,
on or before July 27, 1990, 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 $750,000
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 at this time, 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 Sec. 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.
* * * * *
(e) Each decommissioning funding plan must contain a cost estimate
for decommissioning and 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. The decommissioning funding plan must
also contain a
[[Page 38240]]
certification by the licensee that financial assurance for
decommissioning has been provided in the amount of the cost estimate
for decommissioning and a signed original of the financial instrument
obtained to satisfy the requirements of paragraph (f) of this section.
* * * * *
9. Section 70.38 is amended by redesignating paragraph (e) through
(j) as (f) through (k) and adding a new paragraph (e) to read as
follows:
Sec. 70.38 Expiration and termination of licenses and decommissioning
of sites and separate buildings or outdoor areas.
* * * * *
(e) Coincident with the notification required by paragraph (d) of
this section, the licensee shall maintain in effect all decommissioning
financial assurances established by the licensee pursuant to Sec. 30.35
in conjunction with a license issuance or renewal or as required by
this section. The amount of the financial assurance must be increased,
or may be decreased, as appropriate, to cover the detailed cost
estimate for decommissioning established pursuant to paragraph
(g)(4)(v) of this section.
(1) Any licensee who has not provided financial assurance to cover
the detailed cost estimate submitted with the decommissioning plan
shall do so when this rule becomes effective November 24, 1995.
(2) Following approval of the decommissioning plan, a licensee may
reduce the amount of the financial assurance as decommissioning
proceeds and radiological contamination is reduced at the site with the
approval of the Commission.
* * * * *
PART 72--LICENSING REQUIREMENTS FOR THE INDEPENDENT STORAGE OF
SPENT NUCLEAR FUEL AND HIGH-LEVEL RADIOACTIVE WASTE
10. The authority citation for part 72 continues to read as
follows:
Authority: Secs. 51, 53, 57, 62, 63, 65, 69, 81, 161, 182, 183,
184, 186, 187, 189, 68 Stat. 929, 930, 932, 933, 934, 935, 948, 953,
954, 955, as amended, sec. 234, 83 Stat. 444, as amended, (42 U.S.C.
2071, 2073, 2077, 2092, 2093, 2095, 2099, 2111, 2201, 2232, 2233,
2234, 2236, 2237, 2238, 2282); sec. 274 Pub. L. 86-373, 73 Stat.
688, as amended (42 U.S.C. 2021); sec. 201, as amended, 202, 206, 88
Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846);
Pub. L. 95-601, sec. 10, 92 Stat. 2951 as amended by Pub. L. 102-
486, sec. 2902, 106 Stat. 3123 (42 U.S.C. 5851); sec. 102, Pub. L.
91-190, 83 Stat. 853) (42 U.S.C. 4332); Secs. 131, 132, 133, 135,
137, 141, Pub. L. 97-425, 96 Stat. 2229, 2230, 2232, 2241, sec. 148,
Pub. L. 100-203, 101 Stat. 1330-235 (42 U.S.C. 10151, 10152, 10153,
10155, 10157, 10161, 10168).
Section 72.44(g) also issued under secs. 142(b) and 148 (c),
(d), Pub. L. 100-203, 101 Stat. 1330-232, 1330-236 (42 U.S.C.
10162(b), 10168 (c), (d)). Section 72.46 also issued under sec. 189,
68 Stat. 955 (42 U.S.C. 2239); sec. 134 Pub. L. 97-425, 96 Stat.
2230 (42 U.S.C. 10154). Section 72.96(d) also issued under sec.
145(g), Pub. L. 100-203, 101 Stat. 1330-235 (42 U.S.C. 10165(g)).
Subpart J also issued under secs. 2(2), 2(15), 2(19), 117(a),
141(h), Pub. L. 97-425, 96 Stat. 2202, 2203, 2204, 2222, 2244 (42
U.S.C. 10101, 10137(a), 10161(h)). Subparts K and L are also issued
under sec. 133, 98 Stat. 2230 (42 U.S.C. 10153) and sec. 218(a), 96
Stat. 2252 (42 U.S.C. 10198).
11. Section 72.54 is amended by redesignating paragraph (e) through
(l) as (f) through (m) and adding a new paragraph (e) to read as
follows:
Sec. 72.54 Expiration and termination of licenses and decommissioning
of sites and separate buildings or outdoor areas.
* * * * *
(e) Coincident with the notification required by paragraph (d) of
this section, the licensee shall maintain in effect all decommissioning
financial assurances established by the licensee pursuant to Sec. 72.30
in conjunction with a license issuance or renewal or as required by
this section. The amount of the financial assurance must be increased,
or may be decreased, as appropriate, to cover the detailed cost
estimate for decommissioning established pursuant to paragraph (g)(5)
of this section.
(1) Any licensee who has not provided financial assurance to cover
the detailed cost estimate submitted with the decommissioning plan
shall do so when this rule becomes effective November 24, 1995.
(2) Following approval of the decommissioning plan, a licensee may
reduce the amount of the financial assurance as decommissioning
proceeds and radiological contamination is reduced at the site with the
approval of the Commission.
* * * * *
Dated at Rockville, MD., this 20th day of July, 1995.
For the Nuclear Regulatory Commission.
John C. Hoyle,
Secretary of the Commission.
[FR Doc. 95-18315 Filed 7-25-95; 8:45 am]
BILLING CODE 7590-01-P
