Section 180-3-018 - FINANCIAL ASSURANCE AND RECORDKEEPING FOR DECOMMISSIONINGThis section addresses financial assurance and recordkeeping for decommissioning.
018.01DECOMMISSIONING FUNDING PLAN. The following requirements apply to the submission of decommissioning funding plans. 018.01(A)UNSEALED RADIOACTIVE MATERIAL. Each holder of, or 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 105 times the applicable quantities set forth in 180 NAC 4, Appendix 4-F must submit a decommissioning funding plan as described in 180 NAC 3-018.05. 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 Appendix 4-F of 180 NAC 4.018.01(B)SEALED SOURCES OR PLATED FOILS. Each holder of, or applicant for any specific license authorizing the possession and use of sealed sources or plated foils of half-life greater than 120 days and in quantities exceeding 1012 times the applicable quantities set forth in 180 NAC 4, Appendix 4-F, or when a combination of isotopes is involved if R, as defined in 180 NAC 3-018.01(A), divided by 1012 is greater than 1, must submit a decommissioning funding plan as described in 180 NAC 3-018.05.018.02DECOMMISSIONING FUNDING PLAN OR CERTIFICATION OF FINANCIAL ASSURANCE. Each holder of, or applicant for a specific license authorizing possession and use of radioactive material of half-life greater than 120 days and in quantities specified in 180 NAC 3-018.04 must either: (A) Submit a decommissioning funding plan as described in 180 NAC 3-018.05; or(B) Submit a certification that financial assurance for decommissioning has been provided in the amount prescribed by 180 NAC 3-018.04 using one of the methods described in 180 NAC 3-018.06. 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 radioactive 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 180 NAC 3-018.06 must be submitted to the Department before receipt of radioactive material. If the applicant does not defer execution of the financial instrument, the applicant must submit to the Department as part of the certification, a signed original of the financial instrument obtained to satisfy the requirements of 180 NAC 3-018.06.018.03WASTE COLLECTORS, WASTE PROCESSORS AND LICENSEES HAVING SITES WITH RESIDUAL RADIOACTIVITY. The following requirements apply to waste collectors and waste processors and sites unable to meet radiological criteria for unrestricted release. 018.03(A)WASTE COLLECTOR AND WASTE PROCESSORS. Waste collector and waste processors, as defined in 180 NAC 4, Appendix 4-D, must provide financial assurance in an amount based on a decommissioning funding plan as described in 180 NAC 3-018.05. The decommissioning funding plan must 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 which 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 180 NAC 3.018.03(B)LICENSEES HAVING SITES WITH RESIDUAL RADIOACTIVITY. If, in surveys made under 180 NAC 4-021.01, 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 180 NAC 4-016 criteria for unrestricted use, the licensee must provide financial assurance in an amount based on a decommissioning funding plan as described in 180 NAC 3-018.05 within one year of when the survey is completed.018.04TABLE OF REQUIRED AMOUNTS OF FINANCIAL ASSURANCE FOR DECOMMISSIONING BY QUANTITY OF MATERIAL. Licensees having possession limits exceeding the upper bound of this table must base financial assurance on a decommission funding plan. Greater than 104 but less than or equal to 105 times the applicable quantities of 180 NAC 4, Appendix 4-F in unsealed form. (For a combination of isotopes, if R, as defined in 180 NAC 3-018.01, (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 180 NAC 4, Appendix 4-F in unsealed form. (For a combination of isotopes, if R, as defined in 180 NAC 3-018.01, (A) divided by 103 is greater than 1 but R divided by 104 is less than or equal to 1.) | $225,000 |
Greater than 1010 but less than or equal to 1012 times the applicable quantities of 180 NAC 4, Appendix 4-F in sealed sources or plated foils. (For a combination of isotopes, if R, as defined in180 NAC 3-018.01, (A) divided by 1010 is greater than 1, but R divided by 1012 is less than or equal to 1.) | $113,000 |
018.05REQUIREMENTS FOR REVIEW AND APPROVAL. Each decommissioning funding plan must be submitted for review and approval and must contain:(1) 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 180 NAC 4-016 criteria for unrestricted use, provided that, if the applicant or licensee can demonstrate its ability to meet the provisions of 180 NAC 4-017, the cost estimate may be based on meeting the 180 NAC 4-017 criteria;(iii) The volume of onsite subsurface material containing residual radioactivity that will require remediation to meet the criteria for license termination; and(iv) An adequate contingency factor;(2) Identification of and justification for using the key assumptions contained in the decommissioning cost estimate (DCE);(3) A description of the method of assuring funds for decommissioning from 180 NAC 3018.06, including means for adjusting cost estimates and associated funding levels periodically over the life of the facility;(4) A certification by the licensee that financial assurance for decommissioning has been provided in the amount of the cost estimate for decommissioning; and(5) A signed original of the financial instrument obtained to satisfy the requirements of 180 NAC 3-018.06, unless a previously submitted and accepted financial instrument continues to cover the cost estimate for decommissioning.018.05(A)DECOMMISSIONING FUNDING PLAN RESUBMISSION. At the time of license renewal and at intervals not to exceed three 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 cannot 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.018.06FINANCIAL INSTRUMENT. The financial instrument must include the licensee's name, license 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. The financial instrument submitted must be a signed original or signed original duplicate, other than where a copy of the signed original is specifically permitted. Financial assurance for decommissioning must be provided by one or more of the following methods.018.06(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 must be made into a trust account, and the trustee and trust must be acceptable to the Department.018.06(B)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 180 NAC 3, Appendix 3-F. For commercial corporation 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 180 NAC 3 Appendix 3-D. 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 180 NAC 3, Appendix 3-G. 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 180 NAC 3, Appendix 3H. Other than 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 issuer notifies the Department, 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 Department 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 Department. 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; and(iii) The surety method or insurance must remain in effect until the Department has terminated the license.018.06(C)EXTERNAL SINKING FUND. An external sinking fund in which deposits are made at least annually, 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. 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 180 NAC 3-018.06(B).018.06(D)STATEMENT OF INTENT. 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 180 NAC 3-018.04, and indicating that funds for decommissioning will be obtained when necessary.018.06(E)GOVERNMENT ENTITY ASSUMING CUSTODY AND OWNERSHIP. When a governmental entity is assuming custody and ownership of a site, an arrangement that is deemed acceptable by such governmental entity.018.07RECORDS OF INFORMATION IMPORTANT TO THE DECOMMISSIONING OF THE FACILITY. Each person licensed under 180 NAC 3, 5, 7, 12, 14 and 19 must 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 according to 180 NAC 3-017.02, licensees must transfer all records described in 180 NAC 3-018.07 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 important to decommissioning consists of: (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 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 must substitute appropriate records of available information concerning these areas and locations;(C) A list contained in a single document and updated every 2 years, for areas other than areas containing only sealed sources, provided the sources have not leaked or no contamination remains after any leak, or radioactive materials having only half-lives of less than 65 days. The list must include the following:(i) All areas designated and formerly designated as restricted areas as defined under 180 NAC 1-002;(ii) All areas outside of restricted areas that require documentation under 180 NAC 3-018.07, (A);(iii) All areas outside of restricted areas where current and previous wastes have been buried as documented under 180 NAC 4-054; and(iv) All areas outside of restricted areas which contain material such that, if the license expired, the licensee would be required to either decontaminate the area to unrestricted release levels or apply for approval for disposal under 180 NAC 4040; and(D) 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.018.08DECOMMISSIONING FUNDING PLAN FOR APPLICATIONS AUTHORIZING POSSESSION AND USE OF MORE THAN 100 mCi OF SOURCE MATERIAL IN A READILY DISPERSIBLE FORM. Each person applying for a specific license authorizing the possession and use of more than 100 mCi of source material in a readily dispersible form must submit a decommissioning funding plan as described in 180 NAC 3-018.05.018.09DECOMMISSIONING FUNDING PLAN FOR APPLICATIONS AUTHORIZING POSSESSION AND USE OF GREATER THAN 10 mCi BUT LESS THAN OR EQUAL TO 100 mCi OF SOURCE MATERIAL IN A READILY DISPERSIBLE FORM. Each person applying for a specific license authorizing the possession and use of quantities of source material greater than 10 mCi but less than or equal to 100 mCi in a readily dispersible form must either: (A) Submit a decommissioning funding plan as described in 180 NAC 3-018.05; or(B) Submit a certification that financial assurance for decommissioning has been provided in the amount of $225,000 using one of the methods described in 180 NAC 3-018.06. 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 180 NAC 3-018.06 must be submitted to Department prior to receipt of licensed material. If the applicant does not defer execution of the financial instrument, the applicant must submit to Department, as part of the certification, a signed original of the financial instrument obtained to satisfy the requirements of 180 NAC 3-18.06.018.10FINANCIAL ASSURANCE FUNDS. In providing financial assurance under 180 NAC 3-018, 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 Department, as follows: (A) 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;(B) 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; and(C) Within 30 days of taking the actions required by 180 NAC 3-018.10(A) or (B), the licensee must provide a written report of such actions to the Department and state the new balance of the fund.180 Neb. Admin. Code, ch. 3, § 018
Amended effective 6/15/2021