S.C. Code Regs. § § 61-63.I.RHB 1.15

Current through Register Vol. 48, No. 10, October 25, 2024

Section 61-63.I.RHB 1.15 - Financial Assurances and Recordkeeping for Decommissioning

1.15.1 The Department shall consider on a case-by-case basis, and require if found necessary before issuance of a license, financial assurances for the purpose of decommissioning or decontaminating facilities and the environment prior to closure and release for unrestricted use, or cleanup of the environment and facilities due to operations and accidental and unexpected releases of radioactive materials. The form and amount of such financial assurances shall be specifically determined by the Department.

1.15.2 Financial or surety arrangements generally acceptable to the Department include surety bonds, cash deposits, certificates of deposits, deposits of government securities, escrow accounts, irrevocable letters or lines of credit, trust funds, and combinations of the above or such other types of arrangements as may be approved by the Department.

1.15.3 Notwithstanding the requirements of RHA 1.15.1 and 1.15.2 above, each applicant for a specific license of the types described in RHA 1.15.3.1 through 1.15.3.4 shall submit a decommissioning funding plan as described in RHA 1.15.11.

1.15.3.1 Authorizing the possession and use of unsealed byproduct material of half-life greater than 120 days and in quantities exceeding 10⁵ times the applicable quantities set forth in Appendix C, RHA 3.54 or 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 C, RHA 3.54.

1.15.3.2 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 Appendix C, RHA 3.54 (or when a combination of isotopes is involved if R, as defined in RHA 1.15.3.1, divided by 10¹² is greater than 1).

1.15.3.3 Authorizing the possession and use of more than 100 millicuries of source material in a readily dispersible form.

1.15.3.4 Authorizing the possession of unsealed special nuclear material in quantities exceeding 10⁵ times the applicable quantities set forth in Appendix C, RHA 3.54 or when a combination of isotopes is involved if R divided by 10⁵ is greater than 1 (unity rule), where R is the sum of the ratios of the quantity of each isotope to the applicable value in Appendix C, RHA 3.54.

1.15.4 Each applicant for a specific license as described in 1.15.3 and in quantities specified in RHA 1.15.10 of this section shall either---

1.15.4.1 Submit a decommissioning funding plan as described in RHA 1.15.11 of this section; or

1.15.4.2 Submit a certification that financial assurance for decommissioning has been provided in the amount prescribed by RHA 1.15.10 of this section using one of the methods described in RHA 1.15.12 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 RHA 1.15.12 must be submitted to the Department before receipt of licensed material. If the applicant does not defer execution of financial instrument, the applicant shall submit to the Department, as part of the certification, a signed original of the financial instrument obtained to satisfy the requirements of RHA 1.15.12.

1.15.5 Each holder of a specific license issued on or after the effective date of these regulations, which is of a type described in RHA 1.15.3 or 1.15.4 of this section, shall provide financial assurance for decommissioning in accordance with. RHA 1.15.12.

1.15.6 Each holder of a specific license of a type described in RHA 1.15.3 of this section shall submit a decommissioning funding plan as described in RHA 1.15.11 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.

1.15.7 Each holder of a specific license of a type described in RHA 1.15.4 shall submit a decommissioning funding plan as described in RHA 1.15.11 or a certification of financial assurance for decommissioning in accordance with RHA 1.15.12.

1.15.8 Any licensee who has submitted an application for renewal of license in accordance with RHA 2.12 shall provide financial assurance for decommissioning in accordance with RHA 1.15.3 and RHA 1.15.4.

1.15.9 Waste collectors and waste processors, as defined in RHA 3.2, must provide financial assurance in an amount based on a decommissioning funding plan as described in RHA 1.15.11. The decommissioning funding plan must include the cost of disposal of the maximum amount (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 RHA 2.11. The decommissioning funding plan must be submitted by June 30, 2007.

1.15.10 Required Amounts of Financial Assurance for Decommissioning by Quantity of Material. Licensees required to submit the $1,125,000 must do so by June 30, 2007. Licensees required to submit $113,000 or $225,000 amount must do so by June 30, 2007. Licensees having possession limits exceeding the upper bounds of this table must base financial assurance on a decommissioning funding plan.

TABLE I

(i) greater than 104 but less than or equal to 105 times the applicable quantities of Appendix C, RHA 3.54 in unsealed form. (For a combination of isotopes, if R, as defined in RHA 1.15.3.1, divided by 104 is greater than 1 but R divided by 105 is less than or equal to 1)	$1,125,000
(ii) greater than 103 but less than or equal to 104 times the applicable quantities of Appendix C, RHA 3.54 in unsealed form. (For a combination of isotopes, if R, as defined in RHA 1.15.3.1 divided by 103 is greater than 1 but R divided by 104 is less than or equal to 1.)	$225,000
(iii) greater than 1010 times the applicable quantities of Appendix C, RHA 3.54 in sealed sources or plated foils. (For a combination of isotopes, if R, as defined in RHA 1.15.3.1, divided by 1010 is greater than 1, but R divided by 1012 is less than or equal to 1.)	$113,000

1.15.10.1 Prepayment. Prepayment is the deposit prior to the start of the 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.

1.15.10.2 A surety method, insurance, or other guarantee method. These methods guarantee that decommissioning costs will be paid should the licensee default. 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 RHA 1.17, Appendix A to this part. A parent company guarantee may not be used in combination with other financial methods to satisfy the requirements of this section. A guarantee of funds by the applicant or licensee for decommissioning costs based on a financial test may be used if the guarantee and test are as contained in Appendix B of this part. A guarantee by the applicant or licensee may not be used in combination with any other financial methods 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 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.

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

1.15.10.3 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, escrow account, government fund, certificate of deposit, or deposit of government securities. The surety or insurance provisions must be as stated in RHA 1.15.10.2 of this section.

1.15.10.4 In the case of Federal, State, or local government licensees, a statement of intent containing a cost estimate for decommissioning or an amount based on the Table in RHA 1.15.8 of this section, and indicating that funds for decommissioning will be obtained when necessary.

1.15.11 Decommissioning Funding Plan.

1.15.11.1 Each decommissioning funding plan must be submitted for review and approval and must contain:

1.15.11.1.1 A detailed cost estimate for decommissioning, in an amount reflecting:

1.15.11.1.1.1 The cost of an independent contractor to perform all decommissioning activities;

1.15.11.1.1.2 The cost of meeting the RHA 3.57.2 criteria for unrestricted use, provided that, if the applicant or licensee can demonstrate its ability to meet the provisions of RHA 3.57.3, the cost estimate may be based on meeting the RHA 3.57.3 criteria;

1.15.11.1.1.3 The volume of onsite subsurface material containing residual radioactivity that will require remediation to meet the criteria for license termination; and

1.15.11.1.1.4 An adequate contingency factor.

1.15.11.1.2 Identification of and justification for using the key assumptions contained in the DCE;

1.15.11.1.3 A description of the method of assuring funds for decommissioning from RHA 1.15.12, including means for adjusting cost estimates and associated funding levels periodically over the life of the facility;

1.15.11.1.4 A certification by the licensee that financial assurance for decommissioning has been provided in the amount of the cost estimate for decommissioning; and

1.15.11.1.5 A signed original of the financial instrument obtained to satisfy the requirements of RHA 1.15.12 of this section (unless a previously submitted and accepted financial instrument continue to cover the cost estimate for decommissioning).

1.15.11.2 At the time of license renewal and at intervals not to exceed 3 years, the decommissioning funding plan must be resubmitted with adjustments as necessary to account for changes in costs and the extent of contamination. If the amount of financial assurance will be adjusted downward, this 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:

1.15.11.2.1 Spills of radioactive material producing additional residual radioactivity in onsite subsurface material;

1.15.11.2.2 Waste inventory increasing above the amount previously estimated;

1.15.11.2.3 Waste disposal costs increasing above the amount previously estimated;

1.15.11.2.4 Facility modifications;

1.15.11.2.5 Changes in authorized possession limits;

1.15.11.2.6 Actual remediation costs that exceed the previous cost estimate;

1.15.11.2.7 Onsite disposal; and

1.15.11.2.8 Use of a settling pond.

1.15.12 The financial instrument must include the licensee's name, license number, and docket number; and the name, address, and other contact information of the issuer, and, if a trust is used, the trustee. When any of the foregoing information changes, the licensee must, within 30 days, submit financial instruments reflecting such changes. The financial instrument submitted must be a signed original or signed original duplicate, except where a copy is specifically permitted. Financial assurance for decommissioning must be provided by one or more of the following methods:

1.15.13 Each person licensed under this part or Parts II, IV or V of these regulations shall keep records of information important to the decommissioning of a facility in an identified location until the site is released for unrestricted use. Before licensed activities are transferred or assigned in accordance with RHA 2.10.2, licensees shall transfer all records described in this paragraph to the new license. 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:

1.15.13.1 Records of spills or other unusual occurrences involving the spread of contamination in and around the facility, equipment, or site. These records may be limited to instances when contamination remains after any cleanup procedures or when there is reasonable likelihood that contaminants may have spread to inaccessible areas as in the case of possible seepage into porous materials such as concrete. These records must include any known information on identification of involved nuclides, quantities, forms, and concentrations.

1.15.13.2 As-built drawings and modifications of structures and equipment in restricted areas where radioactive materials are used and/or stored, and of locations of possible inaccessible contamination such as buried pipes, which may be subject to contamination. If required drawings are referenced, each relevant document need not be indexed individually. If drawings are not available, the licensee shall substitute appropriate records of available information concerning these areas and locations.

1.15.13.3 Except for areas containing sealed sources (provided the sources have not leaked or not contamination remains after any leak), or where licensed material has been used in a device or component and is intact (for example depleted uranium used only for shielding or as penetrators in unused munitions), or byproduct materials having only half-lives of less than 65 days, a list contained in a single document and updated every 2 years of the following:

1.15.13.3.1 All areas designated and formerly designated restricted areas as defined RHA 1.2;

1.15.13.3.2 All areas outside of restricted areas that required documentation under RHA 1.15;

1.15.13.3.3 All areas outside of restricted areas where current and previous wastes have been buried as documented under RHA 3.41; and

1.15.13.3.4 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 levels or apply for approval for disposal under RHA 3.28.

1.15.13.4 Records of the cost estimate performed for the decommissioning funding plan or of the amount certified for decommissioning, and records of the funding method used for assuring funds if either a funding plan or certification is used.

S.C. Code Regs. § 61-63.I.RHB 1.15

Amended by State Register Volume 38, Issue No. 10, eff. 10/24/2014.