Section DHS 157.15 - Financial assurance and records for decommissioning(1) FINANCIAL ASSURANCE REQUIREMENT FOR A SPECIFIC LICENSE. (a)Unsealed radioactive material, sealed sources or plated foils. A person applying for a specific license authorizing the possession and use of unsealed radioactive material, sealed sources or plated foils shall submit a decommissioning funding plan as described in sub. (5) with the license application for any of the following types of materials:1. Unsealed radioactive material with a half-life greater than 120 days and in quantities greater than 10 5 times the applicable quantities listed in ch. DHS 157 Appendix I.2. Unsealed radioactive material with a half-life greater than 120 days involving a combination of isotopes with R divided by 10 5 being greater than one, where R is defined as the sum of the ratios of the quantity of each isotope to the applicable value in ch. DHS 157 Appendix I.3. Sealed sources or plated foils with a half-life greater than 120 days and in quantities greater than 10 12 times the applicable quantities listed in ch. DHS 157 Appendix I.4. Sealed sources or plated foils with a half-life greater than 120 days involving a combination of isotopes with R divided by 10 12 being greater than one, where R is defined as the sum of the ratios of the quantity of each isotope to the applicable value in ch. DHS 157 Appendix I.(b) Other radioactive material. A person applying for a specific license authorizing the possession and use of radioactive material not covered by par. (a) with a half-life greater than 120 days and in quantities specified in sub. (4) shall do either of the following: 1. Submit a decommissioning funding plan as described in sub. (5).2. Submit a written certification, signed by the chief financial officer or other individual designated by management to represent the licensee, that financial assurance has been provided in the amount prescribed in sub. (4) using one of the methods described in sub. (5) and a signed original of the financial instrument obtained to satisfy the requirements of sub. (6). The written certification may state that the appropriate assurance will be obtained after the application has been approved and the license issued by the department but before receipt of radioactive material by the applicant. If the applicant defers execution of the financial instrument until after the license has been issued, the applicant shall submit to the department a signed original of the financial instrument obtained before receipt of licensed material. If the applicant does not defer execution of the 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 sub. (6).(2) EXEMPTIONS. The following are exempt from the requirements of this section: (a) A state, local or other government agency, except for a government agency licensed to handle or process radioactive waste.(b) A person authorized to possess only radioactive materials with a half-life of 65 days or less.(c) Other persons exempted by the department based on a review of the license application.(3) IMPLEMENTATION. (a) A person who possesses a specific license authorizing the possession and use of radioactive material issued on or after the effective date of August 1, 2002, which is of a type described in sub. (1), shall provide financial assurance for decommissioning under this section.(b) A person who possesses a specific license issued before the effective date of August 1, 2002, shall do one of the following:1. For a license authorizing the use of radioactive material meeting the criteria of sub. (1) (a), submit a decommissioning funding plan as described in sub. (5) and a certification of financial assurance for at least $1,125,000, under the criteria in sub. (4), with any application for license renewal.2. For a license authorizing the use of radioactive material meeting the criteria of sub. (1) (b), submit a decommissioning funding plan as described in sub. (5) or a certification of financial assurance for decommissioning according to the criteria of sub. (4) with any application for license renewal.(c) The term of the financial assurance shall be from the issuance or renewal of the license until the department terminates the license.(d) A licensee's financial assurance arrangements may be reviewed by the department to recognize any increases or decreases resulting from inflation or deflation, changes in engineering plans, activities performed or any other condition affecting costs for decommissioning to ensure that sufficient funding is available to cover liability that remains until license termination.(4) REQUIRED AMOUNTS FOR FINANCIAL ASSURANCE. (a) A licensee shall provide the following minimum amounts of financial assurance for decommissioning, unless otherwise specified by the department: 1. One million one hundred twenty-five thousand dollars if the quantity of material is greater than 104 but less than or equal to 105 times the applicable quantities of ch. DHS 157 Appendix I in unsealed form. For a combination of isotopes, R divided by 104 is greater than one but R divided by 105 is less than or equal to one.2. Two hundred twenty-five thousand dollars if the quantity of material is greater than 103 but less than or equal to 104 times the applicable quantities of ch. DHS 157 Appendix I in unsealed form. For a combination of isotopes, R divided by 103 is greater than one but R divided by 10 4 is less than or equal to one.3. One hundred thirteen thousand dollars if the quantity of material is greater than 1010 but less than or equal to 1012 times the applicable quantities of ch. DHS 157 Appendix I in sealed sources or plated foils. For a combination of isotopes, R divided by 1010 is greater than one but R divided by 1012 is less than or equal to one.(b) The department may eliminate, reduce or raise the required amount of financial assurance under par. (a) for an individual applicant or licensee based on the cost estimate for decommissioning included in the decommissioning funding plan required under sub. (5) (a).(5) DECOMMISSIONING FUNDING PLAN. (a) A decommissioning funding plan shall be submitted to the department for review and approval and shall include all the following information: 1. A detailed cost estimate for decommissioning in an amount reflecting all of the following: a. Probable extent of contamination through the use or possession of radioactive material at the facility or site and the projected cost of removal of the contamination to a level specified by the department. The evaluation shall encompass probable contaminating events associated with the licensee's or applicant's operation and shall be based on factors such as quantity, half-life, radiation hazard, toxicity and chemical and physical forms.b. The extent of possible offsite property damage caused by operation of the facility or site.c. The cost of removal and disposal of radiation sources that are or would be generated, stored, processed or otherwise present at the licensed facility or site.d. The costs involved in reclaiming the property on which the facility or site is located and all other properties contaminated by radioactive material authorized under the license.e. The volume of onsite subsurface material containing residual radioactivity that will require remediation to meet the criteria for license termination.f. The cost of an independent contractor to perform all decommissioning activities including an adequate contingency factor.2. Identification of and justification for using the key assumptions contained in the decommissioning cost estimate.3. A description of the method for assuring funds for decommissioning according to sub. (6), including means for adjusting cost estimates and associated funding levels periodically over the life of the facility.(b) The decommissioning funding plan shall also contain the licensee's certification that financial assurance has been provided in the amount of the cost estimate for decommissioning and that a signed original of the financial instrument obtained to satisfy the requirements of sub. (6) has been submitted and accepted, unless a previously submitted and accepted financial instrument continues to cover the cost estimate for decommissioning.(c) At intervals not to exceed 3 years, the licensee shall resubmit the decommissioning funding plan to the department with adjustments as necessary to account for changes in costs and extent of contamination. The amount of financial assurance shall not be decreased until the updated decommissioning funding plan is approved. The licensee shall update the information submitted with the original or previously approved decommissioning funding plan, and shall specifically consider the effect of all the following events on decommissioning costs: 1. Spills of radioactive material producing additional residual radioactivity in onsite subsurface material.2. Waste inventory increasing above the amount estimated.3. Waste disposal costs increasing above the amount previously estimated.4. Facility modifications.5. Changes in authorized possession limits.6. Actual remediation costs that exceed the previous cost estimate.8. Use of a settling pond.(6) FINANCIAL ASSURANCE OPTIONS. A licensee may use any of the following methods to provide financial assurance for decommissioning: (a)Prepayment. Prepayment is the deposit prior to operation into an account segregated from licensee assets and outside the licensee's administrative control of cash or liquid assets in an amount 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)Surety method, insurance or other guarantee. Payment of future decommissioning costs shall be guaranteed by a surety method, insurance or other guarantee. A surety method may be in the form of a surety bond, letter of credit or line of credit. Self insurance, or any method which essentially constitutes self-insurance, may not be used as a method of providing financial assurance. Any surety method or insurance used to provide financial assurance for decommissioning must meet all of the following criteria: 1. The surety method or insurance shall be open-ended or, if written for a specified term, 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 shall 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.2. The surety method or insurance shall be payable to a trust established for decommissioning costs. The department shall approve the trustee and the trust. Note: An acceptable trustee includes the State of Wisconsin or an entity having the authority to act as a trustee and whose trust operations are regulated and examined by a state or federal government agency.
3. The surety method or insurance shall remain in effect until the department terminates the license.(c)External sinking fund. An external sinking fund may be used 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 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 shall meet the requirements of par. (b).(d)Statement of intent. A state or local government licensee exempt under sub. (2) shall submit a written statement of intent containing a cost estimate for decommissioning or an amount based on sub. (4). The cost estimate shall indicate that funds for decommissioning will be obtained when necessary.(7) RECORDS. (a) A licensee shall keep the following records of information related to decommissioning of a facility in an identified location until the site is released for unrestricted use: 1. Records of spills or other unusual occurrences involving the spread of radioactive contamination in and around the facility, equipment or site. The records may be limited to instances where contamination remains after any cleanup procedures or when there is reasonable likelihood that radioactive contaminants may have spread to inaccessible areas or into porous materials such as concrete. The records shall include any known information on identification of involved nuclides, quantities, forms and concentrations.2. 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 that may contain radioactive contaminants. If required drawings are referenced, each relevant document does not need to be indexed individually. If drawings are not available, a licensee shall substitute appropriate records of available information concerning the areas and locations of inaccessible contamination. Note: As-built architectural and engineering drawings need to reflect the final details of the structures and equipment as they were constructed.
3. Except for areas containing only sealed sources that have not leaked or where no contamination remains after a leak, or radioactive materials with half-lives of less than 65 days, a list containing all the following: a. All areas currently and formerly designated as restricted areas.b. All areas outside of restricted areas that require documentation under subd. 1.c. All areas outside of restricted areas where current and previous wastes have been buried as documented under s. DHS 157.31 (9).d. All areas outside of restricted areas that contain radioactive material such that, if the license expired, the licensee would be required to either decontaminate the area to meet the criteria for decommissioning in s. DHS 157.13 (11) (d) or apply for approval for disposal under s. DHS 157.30 (2).4. Records of the cost estimate performed for the decommissioning funding plan or the amount certified for decommissioning and records of the funding method used for assuring funds.(b) A licensee shall keep the records in par. (a) until the site is decommissioned and approved by the department for unrestricted use.(c) Prior to a licensed activity being transferred to another licensee under s. DHS 157.13 (10) (b), the original licensee shall transfer all records under par. (a) to the new licensee. The new licensee shall be responsible for maintaining the records until their license is terminated by the department.(d) The list under par. (a) 3. shall be updated every 2 years.Wis. Admin. Code Department of Health Services DHS 157.15
CR 01-108: cr. Register July 2002 No. 559, eff. - see Note at the start of the chapter; CR 06-021: am. (1) (a) (intro.), (b) 2., (3) (b) 1., (4) (a) 1. to 3., (5) (a) 3. and (7) (a) 3. (intro.), cr. (1) (a) 3. and 4., Register October 2006 No. 610, eff. 11-1-06.Amended by, CR 16-078: am. (1) (a) 2., 4., (5) (a) (intro.), 1. (intro.), cr. (5) (a) 1. e., f., r. and recr. (5) (a) 2., am. (5) (a) 3., (b), cr. (5) (c) Register January 2018 No. 745, eff. 2-1-18; correction in (1) (a) 1. to 4., (4) (a) 1. to 3. made under s. 35.17, Stats., Register January 2018 No. 745, eff. 2/1/2018Amended by, CR 22-015: am. (3) (d) Register June 2023 No. 810, eff. 7/1/2023