La. Admin. Code tit. 33 § XV-325

Current through Register Vol. 50, No. 11, November 20, 2024

Section XV-325 - General Requirements for the Issuance of Specific Licenses

A. Upon a determination that an application meets the requirements of these regulations, the department shall issue a specific license authorizing the possession and use of byproduct material. A license application will be approved if the department determines that:

1. the applicant is qualified by training and experience to use the material in question for the purpose requested in accordance with these regulations in such a manner as to protect health and minimize danger to life or property;

2. the applicant's proposed equipment, facilities, and procedures are adequate to protect health and minimize danger to life or property;

3. the application is for a purpose authorized by these regulations;

4. the applicant satisfies any applicable special requirements contained in LAC 33:XV.326, 327, 328, Chapters 5, 7, 13, 17, or 20; and

B. Environmental Report, Commencement of Construction. In the case of an application for a license to receive and possess radioactive material for commercial waste disposal by land burial, or for the conduct of any other activity that the department determines will significantly affect the quality of the environment, construction of the plant or facility in which the activity will be conducted shall not commence until the department has concluded, after weighing the environmental, economic, technical, and other benefits against environmental costs and considering available alternatives, that the action called for is the issuance of the proposed license, with any appropriate conditions to protect environmental values. Commencement of construction prior to such conclusion shall be grounds for denial of a license to receive and possess radioactive material in such plant or facility. As used in this Section the term commencement of construction means any clearing of land, excavation, or other substantial action that would adversely affect the environment of a site. The term does not mean site exploration, necessary roads for site exploration, borings to determine foundation conditions, or other preconstruction monitoring or testing to establish background information related to the suitability of the site or the protection of environmental values.

C. Financial Assurance Arrangements for Site Reclamation

1. Pursuant to R.S. 30:2115, and as otherwise provided, financial assurance arrangements for site reclamation, which may consist of financial assurance bonds, cash deposits, letters, or lines of credit, or any combination of the above for the categories of licensees listed in LAC 33:XV.325.C4 shall be established to ensure the protection of the public health and safety in the event of abandonment, default, or other inability of the licensee to meet the requirements of the act and these regulations.

a. The amount of funds to be ensured by such financial assurance arrangements shall be based on department-approved cost estimates.

b. Self-insurance, or any arrangement that essentially constitutes self-insurance, will not satisfy the assurance requirement since this provides no additional assurance other than that which already exists through license requirements.

2. The arrangements required in LAC 33:XV.325.C.1 shall be established prior to issuance of the license to assure that sufficient funds will be available to carry out the decontamination and decommissioning of the facility.

3. Amendments to licenses in effect on February 21, 1992, or the effective date of this regulation may be issued providing that the required financial assurance arrangements are established within 90 days after the effective date of these regulations.

4. The following specific licensees are required to make financial assurance arrangements:

a. major processors;

b. waste-handling licensees;

c. facilities formerly licensed by the U.S. Atomic Energy Commission or U.S. Nuclear Regulatory Commission;

d. all others except persons exempt pursuant to LAC 33:XV.325.C5.

5. The following are exempt from the requirements of LAC33:XV.325.C.1:

a. all state, local, or other government agencies, unless they are subject to LAC 33:XV.325.C.4.b;

b. persons authorized to possess no more than 1,000 times the quantity specified in LAC 33 :XV.3 99. Appendix D or a combination of radioactive material listed therein as given in LAC 33:XV.399. Appendix D;

c. persons authorized to possess hydrogen-3 contained as hydrogen gas in a sealed source; or

d. persons authorized to possess radioactive noble gases in sealed sources with no radioactive daughter product with half-life greater than 30 days.

D. Financial Assurance and Recordkeeping for Decommissioning

1. Each applicant for a specific license authorizing the possession and use of unsealed radioactive material of half-life greater than 120 days and in quantities exceeding 10 times the applicable quantities set forth in LAC 33:XV.399. Appendix D shall submit a decommissioning funding plan as described in Paragraph D.6 of this Section. The 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 defined here as the sum of the ratios of the quantity of each isotope to the applicable value in LAC 33:XV.399. Appendix D.

2. Each holder of, or applicant for, any specific license authorizing the possession and use of radioactive material of half-life greater than 120 days and in quantities exceeding 10 times the applicable quantities set forth in LAC 33:XV.399. Appendix D (or when a combination of isotopes is involved if R, as defined in Paragraph D. 1 of this Section, divided by 10 is greater than 1), shall submit a decommissioning funding plan as described in Paragraph D.6 of this Section. The decommissioning funding plan must be submitted to the department by December 2, 2005.

3. Each applicant for a specific license authorizing possession and use of radioactive material of half-life greater than 120 days and in quantities specified in Paragraph D.5 of this Section shall either:

a. submit a decommissioning funding plan as described in Paragraph D.6 of this Section; or

b. submit a certification that financial assurance for decommissioning has been provided in the amount prescribed by Paragraph D.5 of this Section using one of the methods described in Paragraph D.7 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 prior to 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 D.7 of this Section shall be submitted to the Office of Environmental Compliance before receipt of licensed material. If the applicant does not defer execution of the financial instrument, the applicant shall submit to the Office of Environmental Compliance, as part of the certification, a signed original of the financial instrument obtained to satisfy the requirements of Paragraph D.7 of this Section.

4. Each holder of a specific license of a type described in Paragraph D. 1 or 2 of this Section shall provide financial assurance for decommissioning in accordance with the criteria set forth in this Section.

a. Each holder of a specific license of a type described in Paragraph D. 1 of this Section shall submit a decommissioning funding plan, as described in Paragraph D.6 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.

b. Each holder of a specific license of a type described in Paragraph D.2 of this Section shall submit a certification of financial assurance for decommissioning, or a decommissioning funding plan, as described in Paragraph D.6 of this Section, in accordance with the criteria set forth in this Section.

c. Any licensee who has submitted an application for renewal of license in accordance with LAC 33:XV.333 shall provide financial assurance for decommissioning in accordance with Paragraphs D. 1 and 2 of this Section. This assurance shall be submitted when this rule becomes effective.

d. Waste collectors and waste processors, as defined in LAC 33:XV.499. Appendix D, shall provide financial assurance in an amount based on a decommissioning funding plan as described in Paragraph D.6 of this Section. The decommissioning funding plan shall include the cost of disposal of the maximum amount (in curies) of radioactive material permitted by license, and the cost of disposal of the maximum quantity, by volume, of radioactive material that could be present at the licensee's facility at any time, in addition to the cost to remediate the licensee's site to meet the license termination criteria of LAC 33:Part XV. The decommissioning funding plan must be submitted by December 2, 2005.

5. The following table lists required amounts of financial assurance for decommissioning by quantity of material. Licensees required to submit the $1,125,000 amount shall do so by December 2, 2005. Licensees required to submit the $113,000 or $225,000 amount shall do so by June 2, 2006. Licensees having possession limits exceeding the upper bounds of this table shall base financial assurance on a decommissioning funding plan.

Greater than 104 but less than or equal to 103 times the applicable quantities of LAC 33:XV.399. Appendix D in unsealed form (for a combination of isotopes, if R, as defined in Paragraph D.l of this Section, divided by 104 is greater than 1 but R divided by 105 is less than or equal to 1).	$1,125,000
Greater than 10 3 but less than or equal to 104 times the applicable quantities of LAC 33:XV.399. Appendix D in unsealed form (for a combination of isotopes, if R, as defined in Paragraph D.l of this Section, divided by 103 is greater than 1 but R divided by 104 is less than or equal to 1).	$225,000
Greater than 10lu times the applicable quantities of LAC 33:XV.399. Appendix D in sealed sources or plated foils (for a combination of isotopes, if R, as defined in Paragraph D.l of this Section, divided by 1010 is greater than 1).	$113,000

6. Each decommissioning funding plan shall be submitted for review and approval, and shall contain:

a. a detailed cost estimate for decommissioning, in an amount reflecting:

i. the cost of an independent contractor to perform all decommissioning activities;

ii. the cost of meeting the criteria in LAC 33:XV.332.D.l.iii for unrestricted use, provided that, if the applicant or licensee can demonstrate its ability to meet the provisions of LAC 33:XV. 332.F, the cost estimate may be based on meeting the criteria in LAC 33:XV.332.F;

iii. the volume of on-site subsurface material containing residual radioactivity that will require remediation to meet the criteria for license termination; and

iv. an adequate contingency factor; and

b. identification of and justification for using the key assumptions contained in the decommissioning cost estimate;

c. a description of the method of assuring funds for decommissioning from Paragraph D.8 of this Section, including means of adjusting cost estimates and associated funding levels 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 Paragraph D.8 of this Section (unless a previously submitted and accepted financial instrument continues to cover the cost estimate for decommissioning).

7. At the time of license renewal and at intervals not to exceed three years, the decommissioning funding plan shall 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 cannot be done until the updated decommissioning funding plan is approved. The decommissioning funding plan shall update the information submitted with the original or prior approved plan, and shall specifically consider the effect of the following events on decommissioning costs:

a. spills of radioactive material producing additional residual radioactivity in on-site subsurface material;

b. waste inventory increasing above the amount previously estimated;

c. waste disposal costs increasing above the amount previously estimated;

d. facility modifications;

e. changes in authorized possession limits;

f. actual remediation costs that exceed the previous cost estimate;

g. on-site disposal; and

h. use of a settling pond.

8. Financial assurance for decommissioning shall be provided by one or more of the following methods.

a. Prepayment. Prepayment is the deposit prior to 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 may be in the form of a trust, escrow account, government fund, certificate of deposit, or deposit of government securities.

b. Surely 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, letter of credit, or line 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 LAC 33:XV.399. Appendix B. A parent company guarantee may not be used in combination with other financial methods to satisfy the requirements of this Section. 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 LAC 33:XV.399. Appendix B. 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 LAC 33:XV.399. Appendix E. 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 LAC 33:XV.399. Appendix F. 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 or 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 shall 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 issuer notifies the Office of Environmental Compliance, the beneficiary, and the licensee of its intention not to renew. The surely 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 department within 30 days after receipt of notification of cancellation.

ii. The surely method or insurance must be payable to a trust established for decommissioning costs.

The trustee and trust must be acceptable to the department. An acceptable trustee includes an appropriate state or federal government 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.

iii. The surety method or insurance must remain in effect until the department has terminated the license.

c. External Sinking Fund. An external sinking fund shall have deposits made to it at least annually, and be coupled with a surety method or insurance, 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 may be in the form of a trust, escrow account, government fund, certificate of deposit, or deposit of government securities. The surety or insurance provisions must be as stated in Subparagraph D.8.b of this Section.

d. Statement of Intent. In the case of federal, state, or local government licensees, a statement of intent shall be included containing a cost estimate for decommissioning or an amount based on the table in Paragraph D.5 of this Section, and indicating that funds for decommissioning will be obtained when necessary.

e. Arrangement with Governmental Entity. When a governmental entity is assuming custody and ownership of a site, an arrangement shall be made that is deemed acceptable by such governmental entity.

9. Each person licensed under this Chapter shall keep records of information important to the decommissioning of the facility in an identified location until the site is released for unrestricted use. Before licensed activities are transferred or assigned in accordance with LAC 33:XV.331.B, licensees shall transfer all records described in this Paragraph to the new licensee. In this case, the new licensee will be responsible for maintaining these records until the license is terminated. 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 department considers important to decommissioning consists of the following:

a. 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;

b. 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 that 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;

c. 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;

d. except for areas containing only sealed sources (provided the sources have not leaked or no contamination remains after any leakage has occurred) or radioactive materials having only half-lives of less than 65 days, a list contained in a single document and updated every two years that shall be kept on the following:

i. all areas designated and formerly designated restricted areas as defined in LAC 33:XV. 102;

ii. all areas outside of restricted areas that require documentation under Subparagraph D.9.a of this Section;

iii. all areas outside of restricted areas where current and previous wastes have been buried, as documented under LAC 33:XV.478; 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 decommissbning in LAC 33:XV.332.E, or apply for approval for disposal under LAC 33.XV.461.

La. Admin. Code tit. 33, § XV-325

Promulgated by the Department of Environmental Quality, Nuclear Energy Division, LR 13:569 (October 1987), amended by the Office of Air Quality and Radiation Protection, Radiation Protection Division, LR 18:34 (January 1992), LR 23:1140 (September 1997), LR 24:2091 (November 1998), amended by the Office of Environmental Assessment, Environmental Planning Division, LR 26:1017 (May 2000), LR 26:2568 (November 2000), LR 27:1227 (August 2001), amended by the Office of Environmental Assessment, LR 31:44 (January 2005), LR 31:1578 (July 2005), amended by the Office of the Secretary, Legal Affairs Division, LR 33:2178 (October 2007), amended by the Office of the Secretary, Legal Division, LR 40:1927 (October 2014), LR 41:2130 (October 2015).

AUTHORITY NOTE: Promulgated in accordance with R.S. 30:2001 et seq., and 2104(B).