Release Quantity
Radioactive material \1\ fraction (curies)------------------------------------------------------------------------Actinium-228....................................... 0.001 4,000Americium-241...................................... .001 2Americium-242...................................... .001 2Americium-243...................................... .001 2Antimony-124....................................... .01 4,000Antimony-126....................................... .01 6,000Barium-133......................................... .01 10,000Barium-140......................................... .01 30,000Bismuth-207........................................ .01 5,000Bismuth-210........................................ .01 600Cadmium-109........................................ .01 1,000Cadmium-113........................................ .01 80Calcium-45......................................... .01 20,000Californium-252.................................... .001 9 (20 mg)Carbon-14 (non-carbon dioxide)..................... .01 50,000Cerium-141......................................... .01 10,000Cerium-144......................................... .01 300Cesium-134......................................... .01 2,000Cesium-137......................................... .01 3,000Chlorine-36........................................ .5 100Chromium-51........................................ .01 300,000Cobalt-60.......................................... .001 5,000Copper-64.......................................... .01 200,000Curium-242......................................... .001 60Curium-243......................................... .001 3Curium-244......................................... .001 4Curium-245......................................... .001 2Europium-152....................................... .01 500Europium-154....................................... .01 400Europium-155....................................... .01 3,000Germanium-68....................................... .01 2,000Gadolinium-153..................................... .01 5,000Gold-198........................................... .01 30,000Hafnium-172........................................ .01 400Hafnium-181........................................ .01 7,000Holmium-166m....................................... .01 100Hydrogen-3......................................... .5 20,000Iodine-125......................................... .5 10Iodine-131......................................... .5 10Indium-114m........................................ .01 1,000Iridium-192........................................ .001 40,000Iron-55............................................ .01 40,000Iron-59............................................ .01 7,000Krypton-85......................................... 1.0 6,000,000Lead-210........................................... .01 8Manganese-56....................................... .01 60,000Mercury-203........................................ .01 10,000Molybdenum-99...................................... .01 30,000Neptunium-237...................................... .001 2Nickel-63.......................................... .01 20,000Niobium-94......................................... .01 300Phosphorus-32...................................... .5 100Phosphorus-33...................................... .5 1,000Polonium-210....................................... .01 10Potassium-42....................................... .01 9,000Promethium-145..................................... .01 4,000Promethium-147..................................... .01 4,000Radium-226......................................... 0.001 100Ruthenium-106...................................... .01 200Samarium-151....................................... .01 4,000Scandium-46........................................ .01 3,000Selenium-75........................................ .01 10,000Silver-110m........................................ .01 1,000Sodium-22.......................................... .01 9,000Sodium-24.......................................... .01 10,000Strontium-89....................................... .01 3,000Strontium-90....................................... .01 90Sulfur-35.......................................... .5 900Technitium-99...................................... .01 10,000Technitium-99m..................................... .01 400,000Tellurium-127m..................................... .01 5,000Tellurium-129m..................................... .01 5,000Terbium-160........................................ .01 4,000Thulium-170........................................ .01 4,000Tin-113............................................ .01 10,000Tin-123............................................ .01 3,000Tin-126............................................ .01 1,000Titanium-44........................................ .01 100Vanadium-48........................................ .01 7,000Xenon-133.......................................... 1.0 900,000Yttrium-91......................................... .01 2,000Zinc-65............................................ .01 5,000Zirconium-93....................................... .01 400Zirconium-95....................................... .01 5,000Any other beta-gamma emitter....................... .01 10,000Mixed fission products............................. .01 1,000Mixed corrosion products........................... .01 10,000Contaminated equipment beta-gamma.................. .001 10,000Irradiated material, any form other than solid .01 1,000
noncombustible....................................
Irradiated material, solid noncombustible.......... .001 10,000Mixed radioactive waste, beta-gamma................ .01 1,000Packaged mixed waste, beta-gamma \4\............... .001 10,000Any other alpha emitter............................ .001 2Contaminated equipment, alpha...................... .0001 20Packaged waste, alpha \4\.......................... .0001 20Combinations of radioactive materials listed above ........ .........
\1\...............................................------------------------------------------------------------------------\1\ For combinations of radioactive materials, consideration of the need
for an emergency plan is required if the sum of the ratios of the
quantity of each radioactive material authorized to the quantity
listed for that material in Schedule C exceeds one.\2\ Waste packaged in Type B containers does not require an emergency
plan. [54 FR 14061, Apr. 7, 1989, as amended at 61 FR 9902, Mar. 12, 1996; 72 FR 55926, Oct. 1, 2007] Sec. Appendix A to Part 30--Criteria Relating to Use of Financial Tests
and Parent Company Guarantees for Providing Reasonable Assurance of
Funds for Decommissioning
I. Introduction
An applicant or licensee may provide reasonable assurance of the availability of funds for decommissioning based on obtaining a parent company guarantee that funds will be available for decommissioning costs and on a demonstration that the parent company passes a financial test. This appendix establishes criteria for passing the financial test and for obtaining the parent company guarantee.
II. Financial Test
A. To pass the financial test, the parent company must meet the criteria of either paragraph A.1 or A.2 of this section. For purposes of applying the Appendix A criteria, tangible net worth must be calculated to exclude all intangible assets and the net book value of the nuclear facility and site, and total net worth, which may include intangible assets, must be calculated to exclude the net book value and goodwill of the nuclear facility and site.
1. The parent company must have:
(i) Two of the following three ratios: A ratio of total liabilities to total net worth less than 2.0; a ratio of the sum of net income plus depreciation, depletion, and amortization to total liabilities greater than 0.1; and a ratio of current assets to current liabilities greater than 1.5; and
(ii) Net working capital and tangible net worth each at least six times the amount of decommissioning funds being assured by a parent company guarantee for the total of all nuclear facilities or parts thereof (or prescribed amount if a certification is used); and
(iii) Tangible net worth of at least $21 million; and
(iv) Assets located in the United States amounting to at least 90 percent of the total assets or at least six times the current decommissioning cost estimates for the total of all facilities or parts thereof (or prescribed amount if a certification is used), or, for a power reactor licensee, at least six times the amount of decommissioning funds being assured by a parent company guarantee for the total of all reactor units or parts thereof.
2. The parent company must have:
(i) A current rating for its most recent uninsured, uncollateralized, and unencumbered bond issuance of AAA, AA, A, or BBB (including adjustments of + and -) as issued by Standard and Poor's or Aaa, Aa, A, or Baa (including adjustment of 1, 2, or 3) as issued by Moody's; and
(ii) Total net worth at least six times the amount of decommissioning funds being assured by a parent company guarantee for the total of all nuclear facilities or parts thereof (or prescribed amount if a certification is used); and
(iii) Tangible net worth of at least $21 million; and
(iv) Assets located in the United States amounting to at least 90 percent of the total assets or at least six times the current decommissioning cost estimates for the total of all facilities or parts thereof (or prescribed amount if a certification is used), or, for a power reactor licensee, at least six times the amount of decommissioning funds being assured by a parent company guarantee for the total of all reactor units or parts thereof.
B. The parent company's independent certified public accountant must compare the data used by the parent company in the financial test, which is derived from the independently audited, year-end financial statements for the latest fiscal year, with the amounts in such financial statement. The accountant must evaluate the parent company's off-balance sheet transactions and provide an opinion on whether those transactions could materially adversely affect the parent company's ability to pay for decommissioning costs. The accountant must verify that a bond rating, if used to demonstrate passage of the financial test, meets the requirements of paragraph A of this section. In connection with the auditing procedure, the licensee must inform the NRC within 90 days of any matters coming to the auditor's attention which cause the auditor to believe that the data specified in the financial test should be adjusted and that the company no longer passes the test.
C.1. After the initial financial test, the parent company must annually pass the test and provide documentation of its continued eligibility to use the parent company guarantee to the Commission within 90 days after the close of each succeeding fiscal year.
2. If the parent company no longer meets the requirements of paragraph A of this section, the licensee must send notice to the Commission of intent to establish alternate financial assurance as specified in the Commission's regulations. The notice must be sent by certified mail within 90 days after the end of the fiscal year for which the year end financial data show that the parent company no longer meets the financial test requirements. The licensee must provide alternate financial assurance within 120 days after the end of such fiscal year.
III. Parent Company Guarantee
The terms of a parent company guarantee which an applicant or licensee obtains must provide that:
A. The parent company guarantee will remain in force unless the guarantor sends notice of cancellation by certified mail to the licensee and the Commission. Cancellation may not occur, however, during the 120 days beginning on the date of receipt of the notice of cancellation by both the licensee and the Commission, as evidenced by the return receipts.
B. If the licensee fails to provide alternate financial assurance as specified in the Commission's regulations within 90 days after receipt by the licensee and Commission of a notice of cancellation of the parent company guarantee from the guarantor, the guarantor will provide alternative financial assurance that meets the provisions of the Commission's regulations in the name of the licensee.
C. The parent company guarantee and financial test provisions must remain in effect until the Commission has terminated the license, accepted in writing the parent company's alternate financial assurances, or accepted in writing the licensee's financial assurances.
D. A standby trust to protect public health and safety and the environment must be established for decommissioning costs before the parent company guarantee agreement is submitted. The trustee and trust must be acceptable to the Commission. An acceptable trustee includes an appropriate State or Federal Government agency or an entity which has the authority to act as a trustee, whose trust operations are regulated and examined by a Federal or State agency. The Commission has the right to change the trustee. An acceptable trust will meet the regulatory criteria established in these regulations that govern the issuance of the license for which the guarantor has accepted the obligation to pay for decommissioning costs.
E. The guarantor must agree that it would be subject to Commission orders to make payments under the guarantee agreement.
F. The guarantor must agree that if the guarantor admits in writing its inability to pay its debts generally, or makes a general assignment for the benefit of creditors, or any proceeding is instituted by or against the guarantor seeking to adjudicate it as bankrupt or insolvent, or seeking dissolution, liquidation, winding-up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency, or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian, or other similar official for the guarantor or for any substantial part of its property, or the guarantor takes any action to authorize or effect any of the actions stated in this paragraph, then the Commission may:
1. Declare that the financial assurance guaranteed by the parent company guarantee agreement is immediately due and payable to the standby trust set up to protect the public health and safety and the environment, without diligence, presentment, demand, protest or any other notice of any kind, all of which are expressly waived by guarantor; and
2. Exercise any and all of its other rights under applicable law.
G. 1. The guarantor must agree to notify the NRC, in writing, immediately following the filing of a voluntary or involuntary petition for bankruptcy under any chapter of title 11 (Bankruptcy) of the United States Code, or the occurrence of any other event listed in paragraph F of this Appendix, by or against:
(i) The guarantor;
(ii) The licensee;
(iii) An entity (as that term is defined in 11 U.S.C. 101(14)) controlling the licensee or listing the license or licensee as property of the estate; or
(iv) An affiliate (as that term is defined in 11 U.S.C. 101(2)) of the licensee.
2. This notification must include:
(i) A description of the event, including major creditors, the amounts involved, and the actions taken to assure that the amount of funds guaranteed by the parent company guarantee for decommissioning will be transferred to the standby trust as soon as possible;
(ii) If a petition of bankruptcy was filed, the identity of the bankruptcy court in which the petition for bankruptcy was filed; and
(iii) The date of filing of any petitions. [53 FR 24046, June 27, 1988, as amended at 63 FR 50479, Sept. 22, 1998; 76 FR 35565, June 17, 2011]
Sec. Appendix B to Part 30--Quantities \1\ of Licensed Material
Requiring Labeling ------------------------------------------------------------------------
Material Microcuries------------------------------------------------------------------------Americium-241.............................................. .01Antimony-122............................................... 100Antimony-124............................................... 10Antimony-125............................................... 10Arsenic-73................................................. 100Arsenic-74................................................. 10Arsenic-76................................................. 10Arsenic-77................................................. 100Barium-131................................................. 10Barium-133................................................. 10Barium-140................................................. 10Bismuth-210................................................ 1Bromine-82................................................. 10Cadmium-109................................................ 10Cadmium-115m............................................... 10Cadmium-115................................................ 100Calcium-45................................................. 10Calcium-47................................................. 10Carbon-14.................................................. 100Cerium-141................................................. 100Cerium-143................................................. 100Cerium-144................................................. 1Cesium-131................................................. 1,000Cesium-134m................................................ 100Cesium-134................................................. 1Cesium-135................................................. 10Cesium-136................................................. 10Cesium-137................................................. 10Chlorine-36................................................ 10Chlorine-38................................................ 10Chromium-51................................................ 1,000Cobalt-58m................................................. 10Cobalt-58.................................................. 10Cobalt-60.................................................. 1Copper-64.................................................. 100Dysprosium-165............................................. 10Dysprosium-166............................................. 100Erbium-169................................................. 100Erbium-171................................................. 100Europium-152 9.2 h......................................... 100Europium-152 13 yr......................................... 1Europium-154............................................... 1Europium-155............................................... 10Fluorine-18................................................ 1,000Gadolinium-153............................................. 10Gadolinium-159............................................. 100Gallium-72................................................. 10Germanium-71............................................... 100Gold-198................................................... 100Gold-199................................................... 100Hafnium-181................................................ 10Holmium-166................................................ 100Hydrogen-3................................................. 1,000Indium-113m................................................ 100Indium-114m................................................ 10Indium-115m................................................ 100Indium-115................................................. 10Iodine-125................................................. 1Iodine-126................................................. 1Iodine-129................................................. 0.1Iodine-131................................................. 1Iodine-132................................................. 10Iodine-133................................................. 1Iodine-134................................................. 10Iodine-135................................................. 10Iridium-192................................................ 10Iridium-194................................................ 100Iron-55.................................................... 100Iron-59.................................................... 10Krypton-85................................................. 100Krypton-87................................................. 10Lanthanum-140.............................................. 10Lutetium-177............................................... 100Manganese-52............................................... 10Manganese-54............................................... 10Manganese-56............................................... 10Mercury-197m............................................... 100Mercury-197................................................ 100Mercury-203................................................ 10Molybdenum-99.............................................. 100Neodymium-147.............................................. 100Neodymium-149.............................................. 100Nickel-59.................................................. 100Nickel-63.................................................. 10Nickel-65.................................................. 100Niobium-93m................................................ 10Niobium-95................................................. 10Niobium-97................................................. 10Osmium-185................................................. 10Osmium-191m................................................ 100Osmium-191................................................. 100Osmium-193................................................. 100Palladium-103.............................................. 100Palladium-109.............................................. 100Phosphorus-32.............................................. 10Platinum-191............................................... 100Platinum-193m.............................................. 100Platinum-193............................................... 100Platinum-197m.............................................. 100Platinum-197............................................... 100Plutonium-239.............................................. .01Polonium-210............................................... 0.1Potassium-42............................................... 10Praseodymium-142........................................... 100Praseodymium-143........................................... 100Promethium-147............................................. 10Promethium-149............................................. 10Radium-226................................................. .01Rhenium-186................................................ 100Rhenium-188................................................ 100Rhodium-103m............................................... 100Rhodium-105................................................ 100Rubidium-86................................................ 10Rubidium-87................................................ 10Ruthenium-97............................................... 100Ruthenium-103.............................................. 10Ruthenium-105.............................................. 10Ruthenium-106.............................................. 1Samarium-151............................................... 10Samarium-153............................................... 100Scandium-46................................................ 10Scandium-47................................................ 100Scandium-48................................................ 10Selenium-75................................................ 10Silicon-31................................................. 100Silver-105................................................. 10Silver-110m................................................ 1Silver-111................................................. 100Sodium-24.................................................. 10Strontium-85............................................... 10Strontium-89............................................... 1Strontium-90............................................... 0.1Strontium-91............................................... 10Strontium-92............................................... 10Sulphur-35................................................. 100Tantalum-182............................................... 10Technetium-96.............................................. 10Technetium-97m............................................. 100Technetium-97.............................................. 100Technetium-99m............................................. 100Technetium-99.............................................. 10Tellurium-125m............................................. 10
Tellurium-127m............................................. 10Tellurium-127.............................................. 100Tellurium-129m............................................. 10Tellurium-129.............................................. 100Tellurium-131m............................................. 10Tellurium-132.............................................. 10Terbium-160................................................ 10Thallium-200............................................... 100Thallium-201............................................... 100Thallium-202............................................... 100Thallium-204............................................... 10Thorium (natural) \1\...................................... 100Thulium-170................................................ 10Thulium-171................................................ 10Tin-113.................................................... 10Tin-125.................................................... 10Tungsten-181............................................... 10Tungsten-185............................................... 10Tungsten-187............................................... 100Uranium (natural) \2\...................................... 100Uranium-233................................................ .01Uranium-234--Uranium-235................................... .01Vanadium-48................................................ 10Xenon-131m................................................. 1,000Xenon-133.................................................. 100Xenon-135.................................................. 100Ytterbium-175.............................................. 100Yttrium-90................................................. 10Yttrium-91................................................. 10Yttrium-92................................................. 100Yttrium-93................................................. 100Zinc-65.................................................... 10Zinc-69m................................................... 100Zinc-69.................................................... 1,000Zirconium-93............................................... 10Zirconium-95............................................... 10Zirconium-97............................................... 10Any alpha emitting radionuclide not listed above or .01
mixtures of alpha emitters of unknown composition.........Any radionuclide other than alpha emitting radionuclides, .1
not listed above or mixtures of beta emitters of unknown
composition...............................................------------------------------------------------------------------------\1\ Based on alpha disintegration rate of Th-232, Th-230 and their
daughter products.\2\ Based on alpha disintegration rate of U-238, U-234, and U-235.
Note: For purposes of Sec. 20.303, where there is involved a combination of isotopes in known amounts, the limit for the combination should be derived as follows: Determine, for each isotope in the combination, the ratio between the quantity present in the combination and the limit otherwise established for the specific isotope when not in combination. The sum of such ratios for all the isotopes in the combination may not exceed ``1'' (i.e., ``unity''). [35 FR 6425, Apr. 22, 1970, as amended at 36 FR 16898, Aug. 26, 1971; 38 FR 29314, Oct. 24, 1973; 39 FR 23991, June 28, 1974; 45 FR 71763, Oct. 30, 1980. Redesignated at 56 FR 23391, May 21, 1991, and further redesignated at 58 FR 67659, Dec. 22, 1993] Sec. Appendix C to Part 30--Criteria Relating to Use of Financial Tests
and Self Guarantees for Providing Reasonable Assurance of Funds for
Decommissioning
I. Introduction
An applicant or licensee may provide reasonable assurance of the availability of funds for decommissioning based on furnishing its own guarantee that funds will be available for decommissioning costs and on a demonstration that the company passes the financial test of Section II of this appendix. The terms of the self-guarantee are in Section III of this appendix. This appendix establishes criteria for passing the financial test for the self guarantee and establishes the terms for a self-guarantee.
II. Financial Test
A. To pass the financial test a company must meet all of the criteria set forth in this section. For purposes of applying the Appendix C criteria, tangible net worth must be calculated to exclude all intangible assets and the net book value of the nuclear facility and site, and total net worth, which may include intangible assets, must be calculated to exclude the net book value and goodwill of the nuclear facility and site. These criteria include:
(1) Tangible net worth of at least $21 million, and total net worth at least 10 times the amount of decommissioning funds being assured by a self-guarantee for all decommissioning activities for which the company is responsible as self-guaranteeing licensee and as parent-guarantor for the total of all nuclear facilities or parts thereof (or the current amount required if certification is used).
(2) Assets located in the United States amounting to at least 90 percent of total assets or at least 10 times the amount of decommissioning funds being assured by a self-guarantee, for all decommissioning activities for which the company is responsible as self-guaranteeing licensee and as parent-guarantor for the total of all nuclear facilities or parts thereof (or the current amount required if certification is used).
(3) A current rating for its most recent uninsured, uncollateralized, and unencumbered bond issuance of AAA, AA, or A (including adjustments of + and -) as issued by Standard and Poor's, or Aaa, Aa, or A (including adjustments of 1, 2, or 3) as issued by Moody's.
B. To pass the financial test, a company must meet all of the following additional requirements:
(1) The company must have at least one class of equity securities registered under the Securities Exchange Act of 1934.
(2) The company's independent certified public accountant must compare the data used by the company in the financial test, which is derived from the independently audited, year-end financial statements for the latest fiscal year, with the amounts in such financial statement. The accountant must evaluate the company's off-balance sheet transactions and provide an opinion on whether those transactions could materially adversely affect the company's ability to pay for decommissioning costs. The accountant must verify that a bond rating, if used to demonstrate passage of the financial test, meets the requirements of Section II, paragraph A of this appendix. In connection with the auditing procedure, the licensee must inform the NRC within 90 days of any matters coming to the auditor's attention which cause the auditor to believe that the data specified in the financial test should be adjusted and that the company no longer passes the test.
(3) After the initial financial test, the company must annually pass the test and provide documentation of its continued eligibility to use the self-guarantee to the Commission within 90 days after the close of each succeeding fiscal year.
C. If the licensee no longer meets the requirements of Section II.A. of this appendix, the licensee must send immediate notice to the Commission of its intent to establish alternate financial assurance as specified in the Commission's regulations within 120 days of such notice.
III. Company Self-Guarantee
The terms of a self-guarantee which an applicant or licensee furnishes must provide that:
A. The guarantee will remain in force unless the licensee sends notice of cancellation by certified mail to the Commission. Cancellation may not occur, however, during the 120 days beginning on the date of receipt of the notice of cancellation by the Commission, as evidenced by the return receipt.
B. The licensee shall provide alternative financial assurance as specified in the Commission's regulations within 90 days following receipt by the Commission of a notice of cancellation of the guarantee.
C. The guarantee and financial test provisions must remain in effect until the Commission has terminated the license or until another financial assurance method acceptable to the Commission has been put in effect by the licensee.
D. The licensee will promptly forward to the Commission and the licensee's independent auditor all reports covering the latest fiscal year filed by the licensee with the Securities and Exchange Commission pursuant to the requirements of section 13 of the Securities and Exchange Act of 1934.
(1) If, at any time, the licensee's most recent bond issuance ceases to be rated in any category of ``A-'' and above by Standard and Poor's or in any category of ``A3'' and above by Moody's, the licensee will notify the Commission in writing within 20 days after publication of the change by the rating service.
(2) If the licensee's most recent bond issuance ceases to be rated in any category of A or above by both Standard and Poor's and Moody's, the licensee no longer meets the requirements of Section II.A. of this appendix.
F. The applicant or licensee must provide to the Commission a written guarantee (a written commitment by a corporate officer) which states that the licensee will fund and carry out the required decommissioning activities or, upon issuance of an order by the Commission, the licensee will fund the standby trust in the amount guaranteed by the self-guarantee agreement.
(1) A standby trust to protect public health and safety and the environment must be established for decommissioning costs before the self-guarantee agreement is submitted.
(2) The trustee and trust must be acceptable to the Commission. 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. The Commission has the right to change the trustee. An acceptable trust will meet the regulatory criteria established in these regulations that govern the issuance of the license for which the guarantor has accepted the obligation to pay for decommissioning costs.
H. The guarantor must agree that if the guarantor admits in writing its inability to pay its debts generally, or makes a general assignment for the benefit of creditors, or any proceeding is instituted by or against the guarantor seeking to adjudicate it as bankrupt or insolvent, or seeking dissolution, liquidation, winding-up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency, or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian, or other similar official for the guarantor or for any substantial part of its property, or the guarantor takes any action to authorize or effect any of the actions stated in this paragraph, then the Commission may:
(1) Declare that the financial assurance guaranteed by the self-guarantee agreement is immediately due and payable to the standby trust set up to protect the public health and safety and the environment, without diligence, presentment, demand, protest or any other notice of any kind, all of which are expressly waived by guarantor; and
(2) Exercise any and all of its other rights under applicable law.
I. The guarantor must notify the NRC, in writing, immediately following the occurrence of any event listed in paragraph H of this appendix, and must include a description of the event, including major creditors, the amounts involved, and the actions taken to assure that the amount of funds guaranteed by the self-guarantee agreement for decommissioning will be transferred to the standby trust as soon as possible. [58 FR 68730, Dec. 29, 1993; 59 FR 1618, Jan. 12, 1994, as amended at 63 FR 50479, Sept. 22, 1998; 76 FR 35566, June 17, 2011] Sec. Appendix D to Part 30--Criteria Relating to Use of Financial Tests
and Self-Guarantee for Providing Reasonable Assurance of Funds for
Decommissioning by Commercial Companies That Have No Outstanding Rated
Bonds
I. Introduction
An applicant or licensee may provide reasonable assurance of the availability of funds for decommissioning based on furnishing its own guarantee that funds will be available for decommissioning costs and on a demonstration that the company passes the financial test of Section II of this appendix. The terms of the self-guarantee are in Section III of this appendix. This appendix establishes criteria for passing the financial test for the self-guarantee and establishes the terms for a self-guarantee.
II. Financial Test
A. To pass the financial test a company must meet all of the criteria set forth in this section. For purposes of applying the Appendix D criteria, tangible net worth must be calculated to exclude all intangible assets and the net book value of the nuclear facility and site, and total net worth, which may include intangible assets, must be calculated to exclude the net book value and goodwill of the nuclear facility and site. These criteria include:
(1) Tangible net worth of at least $21 million, and total net worth of at least 10 times the amount of decommissioning funds being assured by a self-guarantee for all decommissioning activities for which the company is responsible as self-guaranteeing licensee and as parent-guarantor for the total of all nuclear facilities or parts thereof (or the current amount required if certification is used).
(2) Assets located in the United States amounting to at least 90 percent of total assets or at least 10 times the total current decommissioning cost estimate (or the current amount required if certification is used) for all decommissioning activities for which the company is responsible as self-guaranteeing licensee and as parent-guarantor.
(3) A ratio of cash flow divided by total liabilities greater than 0.15 and a ratio of total liabilities divided by total net worth less than 1.5.
B. In addition, to pass the financial test, a company must meet all of the following requirements:
(1) The company's independent certified public accountant must compare the data used by the company in the financial test, which is derived from the independently audited, year-end financial statements for the latest fiscal year, with the amounts in such financial statement. The accountant must evaluate the company's off-balance sheet transactions and provide an opinion on whether those transactions could materially adversely affect the company's ability to pay for decommissioning costs. In connection with the auditing procedure, the licensee must inform the NRC within 90 days of any matters coming to the auditor's attention which cause the auditor to believe that the data specified in the financial test should be adjusted and that the company no longer passes the test.
(2) After the initial financial test, the company must annually pass the test and provide documentation of its continued eligibility to use the self-guarantee to the Commission within 90 days after the close of each succeeding fiscal year.
(3) If the licensee no longer meets the requirements of paragraph II.A of this appendix, the licensee must send notice to the NRC of intent to establish alternative financial assurance as specified in NRC regulations. The notice must be sent by certified mail, return receipt requested, within 90 days after the end of the fiscal year for which the year end financial data show that the licensee no longer meets the financial test requirements. The licensee must provide alternative financial assurance within 120 days after the end of such fiscal year.
III. Company Self-Guarantee
The terms of a self-guarantee which an applicant or licensee furnishes must provide that:
A. The guarantee shall remain in force unless the licensee sends notice of cancellation by certified mail, return receipt requested, to the NRC. Cancellation may not occur until an alternative financial assurance mechanism is in place.
B. The licensee shall provide alternative financial assurance as specified in the regulations within 90 days following receipt by the NRC of a notice of cancellation of the guarantee.
C. The guarantee and financial test provisions must remain in effect until the Commission has terminated the license or until another financial assurance method acceptable to the Commission has been put in effect by the licensee.
D. The applicant or licensee must provide to the Commission a written guarantee (a written commitment by a corporate officer) which states that the licensee will fund and carry out the required decommissioning activities or, upon issuance of an order by the Commission, the licensee will fund the standby trust in the amount of the current cost estimates for decommissioning.
E. A standby trust to protect public health and safety and the environment must be established for decommissioning costs before the self-guarantee agreement is submitted. The trustee and trust must be acceptable to the Commission. 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. The Commission will have the right to change the trustee. An acceptable trust will meet the regulatory criteria established in the part of these regulations that governs the issuance of the license for which the guarantor has accepted the obligation to pay for decommissioning costs.
F. The guarantor must agree that if the guarantor admits in writing its inability to pay its debts generally, or makes a general assignment for the benefit of creditors, or any proceeding is instituted by or against the guarantor seeking to adjudicate it as bankrupt or insolvent, or seeking dissolution, liquidation, winding-up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency, or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian, or other similar official for the guarantor or for any substantial part of its property, or the guarantor takes any action to authorize or effect any of the actions stated in this paragraph, then the Commission may:
(1) Declare that the financial assurance guaranteed by the self-guarantee agreement is immediately due and payable to the standby trust set up to protect the public health and safety and the environment, without diligence, presentment, demand, protest or any other notice of any kind, all of which are expressly waived by guarantor; and
(2) Exercise any and all of its other rights under applicable law.
G. The guarantor must notify the NRC, in writing, immediately following the occurrence of any event listed in paragraph F of this appendix, and must include a description of the event, including major creditors, the amounts involved, and the actions taken to assure that the amount of funds guaranteed by the self-guarantee agreement for decommissioning will be transferred to the standby trust as soon as possible. [63 FR 29542, June 1, 1998, as amended at 76 FR 35567, June 17, 2011] Sec. Appendix E to Part 30--Criteria Relating to Use of Financial Tests
and Self-Guarantee For Providing Reasonable Assurance of Funds For
Decommissioning by Nonprofit Colleges, Universities, and Hospitals
I. Introduction
An applicant or licensee may provide reasonable assurance of the availability of funds for decommissioning based on furnishing its own guarantee that funds will be available for decommissioning costs and on a demonstration that the applicant or licensee passes the financial test of Section II of this appendix. The terms of the self-guarantee are in Section III of this appendix. This appendix establishes criteria for passing the financial test for the self-guarantee and establishes the terms for a self-guarantee.
II. Financial Test
(1) or the criteria in Paragraph II.A.(2) of this appendix.
(1) For applicants or licensees that issue bonds, a current rating for its most recent uninsured, uncollateralized, and unencumbered bond issuance of AAA, AA, or A (including adjustments of + or -) as issued by Standard and Poor's (S&P;) or Aaa, Aa, or A (including adjustments of 1, 2, or 3) as issued by Moody's.
(2) For applicants or licensees that do not issue bonds, unrestricted endowment consisting of assets located in the United States of at least $50 million, or at least 30 times the total current decommissioning cost estimate (or the current amount required if certification is used), whichever is greater, for all decommissioning activities for which the college or university is responsible as a self-guaranteeing licensee.
(1) or the criteria in Paragraph II.B.(2) of this appendix:
(1) For applicants or licensees that issue bonds, a current rating for its most recent uninsured, uncollateralized, and unencumbered bond issuance of AAA, AA, or A (including adjustments of + or -) as issued by Standard and Poor's or Aaa, Aa, or A (including adjustments of 1, 2, or 3) as issued by Moody's.
(2) For applicants or licensees that do not issue bonds, all the following tests must be met:
(a) (Total Revenues less total expenditures) divided by total revenues must be equal to or greater than 0.04.
(b) Long term debt divided by net fixed assets must be less than or equal to 0.67.
(c) (Current assets and depreciation fund) divided by current liabilities must be greater than or equal to 2.55.
(d) Operating revenues must be at least 100 times the total current decommissioning cost estimate (or the current amount required if certification is used) for all decommissioning activities for which the hospital is responsible as a self-guaranteeing license.
C. In addition, to pass the financial test, a licensee must meet all the following requirements:
(1) The licensee's independent certified public accountant must compare the data used by the licensee in the financial test, which is derived from the independently audited, year-end financial statements for the latest fiscal year, with the amounts in such financial statement. The accountant must evaluate the licensee's off-balance sheet transactions and provide an opinion on whether those transactions could materially adversely affect the licensee's ability to pay for decommissioning costs. The accountant must verify that a bond rating, if used to demonstrate passage of the financial test, meets the requirements of Section II of this appendix. In connection with the auditing procedure, the licensee must inform the NRC within 90 days of any matters coming to the auditor's attention which cause the auditor to believe that the data specified in the financial test should be adjusted and that the licensee no longer passes the test.
(2) After the initial financial test, the licensee must repeat passage of the test and provide documentation of its continued eligibility to use the self-guarantee to the Commission within 90 days after the close of each succeeding fiscal year.
(3) If the licensee no longer meets the requirements of Section I of this appendix, the licensee must send notice to the NRC of its intent to establish alternative financial assurance as specified in NRC regulations. The notice must be sent by certified mail, return receipt requested, within 90 days after the end of the fiscal year for which the year end financial data show that the licensee no longer meets the financial test requirements. The licensee must provide alternate financial assurance within 120 days after the end of such fiscal year.
III. Self-Guarantee
The terms of a self-guarantee which an applicant or licensee furnishes must provide that--
A. The guarantee shall remain in force unless the licensee sends notice of cancellation by certified mail, and/or return receipt requested, to the Commission. Cancellation may not occur unless an alternative financial assurance mechanism is in place.
B. The licensee shall provide alternative financial assurance as specified in the Commission's regulations within 90 days following receipt by the Commission of a notice of cancellation of the guarantee.
C. The guarantee and financial test provisions must remain in effect until the Commission has terminated the license or until another financial assurance method acceptable to the Commission has been put in effect by the licensee.
D. The applicant or licensee must provide to the Commission a written guarantee (a written commitment by a corporate officer or officer of the institution) which states that the licensee will fund and carry out the required decommissioning activities or, upon issuance of an order by the Commission, the licensee will fund the standby trust in the amount of the current cost estimates for decommissioning.
(1) If, at any time, the licensee's most recent bond issuance ceases to be rated in any category of ``A'' or above by either Standard and Poor's or Moody's, the licensee shall notify the Commission in writing within 20 days after publication of the change by the rating service.
(2) If the licensee's most recent bond issuance ceases to be rated in any category of ``A-'' and above by Standard and Poor's or in any category of ``A3'' and above by Moody's, the licensee no longer meets the requirements of Section II.A. of this appendix.
(1) A standby trust to protect public health and safety and the environment must be established for decommissioning costs before the self-guarantee agreement is submitted.
(2) The trustee and trust must be acceptable to the Commission. 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. The Commission has the right to change the trustee. An acceptable trust will meet the regulatory criteria established in the part of these regulations that governs the issuance of the license for which the guarantor has accepted the obligation to pay for decommissioning costs.
G. The guarantor must agree that if the guarantor admits in writing its inability to pay its debts generally, or makes a general assignment for the benefit of creditors, or any proceeding is instituted by or against the guarantor seeking to adjudicate it as bankrupt or insolvent, or seeking dissolution, liquidation, winding-up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency, or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian, or other similar official for guarantor or for any substantial part of its property, or the guarantor takes any action to authorize or effect any of the actions stated in this paragraph, then the Commission may:
(1) Declare that the financial assurance guaranteed by the self-guarantee agreement is immediately due and payable to the standby trust set up to protect the public health and safety and the environment, without diligence, presentment, demand, protest or any other notice of any kind, all of which are expressly waived by guarantor; and
(2) Exercise any and all of its other rights under applicable law.
H. The guarantor must notify the NRC, in writing, immediately following the occurrence of any event listed in paragraph G of this appendix, and must include a description of the event, including major creditors, the amounts involved, and the actions taken to assure that the amount of funds guaranteed by the self-guarantee agreement for decommissioning will be transferred to the standby trust as soon as possible. [63 FR 29542, June 1, 1998, as amended at 76 FR 35568, June 17, 2011]