[Federal Register Volume 59, Number 119 (Wednesday, June 22, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15022]


[[Page Unknown]]

[Federal Register: June 22, 1994]


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NUCLEAR REGULATORY COMMISSION

10 CFR Parts 30, 40, 70, and 72

RIN 3150-AE95

 

Clarification of Decommissioning Funding Requirements

AGENCY: Nuclear Regulatory Commission.

ACTION: Proposed rule.

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SUMMARY: The Nuclear Regulatory Commission is proposing to amend its 
regulations for nonreactor licensees on decommissioning financial 
assurance, and expiration and termination of licenses. These amendments 
are intended to clarify that financial assurance must be in place 
during operations and updated when the licensee decides to cease 
operations and begin decommissioning. These amendments would explicitly 
describe the financial assurance certification requirements for 
licensees during operation, the implementation and timing requirements 
for licensees whose licenses have been in timely renewal since the 
promulgation of the 1988 decommissioning funding rules, and for 
licensees who cease operations without adequate funding arrangements in 
place.

DATES: The comment period expires September 20, 1994. Comments received 
after this date will be considered if it is practical to do so, but the 
Commission is able to assure consideration only for comments received 
on or before this date.

ADDRESSES: Submit comments to: The Secretary of the Commission, U.S. 
Nuclear Regulatory Commission, Washington, DC 20555, Attention: 
Docketing and Service Branch. Copies of comments received may be 
examined at the NRC Public Document Room, 2120 L Street NW. (Lower 
Level), Washington, DC.

FOR FURTHER INFORMATION CONTACT: Dr. Carl Feldman, U.S. Nuclear 
Regulatory Commission, Washington, DC 20555, telephone (301) 415-6194.

SUPPLEMENTARY INFORMATION:

Background

    In 1983, the Commission amended 10 CFR Parts 30, 40, and 70 to add 
requirements addressing ``Expiration and Termination of Licenses'' (10 
CFR 30.36, 40.42, and 70.38 (48 FR 32324; July 15,1983)). Similar 
provisions were added to 10 CFR Part 72 in 1988 (10 CFR 72.54 (53 FR 
24018)). These requirements set out the procedures to be followed by a 
licensee who decides to decommission a facility and seek termination of 
the applicable license. Under certain circumstances (which apply when a 
Part 30, 40, 70, or 72 licensee has more than a modest amount of 
radioactive contamination to remediate), the licensee is required to 
submit a decommissioning plan that lays out the methods and measures 
for decontamination of the property and equipment.
    In 1988, the Commission promulgated rules addressing ``Financial 
Assurance and Recordkeeping for Decommissioning'' (10 CFR 30.35, 40.36, 
70.25 and 72.30 (53 FR 24018; June 27,1988)). These rules established a 
graded structure for financial assurance that relates the amount of the 
financial assurance required of a licensee to the possession limits in 
his or her license. The graded structure is based on the reasonable 
assumption that the kinds and quantities of radioactive materials 
authorized in the license provide a reasonably good correlation to the 
amount of contamination that has to be remediated. Further, Part 30, 
40, or 70 applicants or licensees whose possession limits exceed or 
would exceed a certain level, and all Part 72 licensees and license 
applicants must provide an estimate of the actual expected 
decommissioning cost as part of their application for a license or for 
license renewal. The estimated costs are reviewed and approved by the 
Commission. Before the license is issued or renewed, the applicant must 
provide financial assurance in one or more of the forms required by the 
rule (prepayment, surety, insurance or other guarantee, or external 
sinking fund with a backup surety).
    The same June 27, 1988, final rule also added a requirement that 
decommissioning plans include an updated detailed cost estimate for 
decommissioning, a comparison of that estimate with present funds set 
aside for decommissioning, and a plan for assuring the availability of 
adequate funds for the completion of decommissioning. The intent in 
promulgating these rules was to ensure that adequate funds would be 
available to cover the costs of decommissioning NRC licensed 
facilities. At the time the decommissioning funding rules were 
promulgated, it was not anticipated that a licensee would move to 
decommissioning without having complied earlier with the financial 
assurance requirements. Since that time a number of licensees who were 
in timely renewal (i.e., licensees who had timely filed an application 
for renewal of their licenses and whose licenses, therefore, continued 
in effect while the renewal applications were being acted upon) when 
the June 27, 1988, rule became effective have decided to terminate 
their activities and begin decommissioning. Other licensees that only 
provided certification for the minimum amounts of financial assurance 
have also decided to terminate activities and begin decommissioning. In 
both situations, insufficient funding was in place when the licensee 
ceased operations and began decommissioning. These amendments are 
intended to clarify that financial assurances must be in place and 
updated when the licensee decides to cease operations and begin 
decommissioning.
    The amendments proposed here would amend those sections in 10 CFR 
Parts 30, 40, 70, and 72 dealing with assurance of adequate funding for 
decommissioning. These changes would more explicitly describe the 
implementation and timing requirements for licensee financial assurance 
instruments and clarify that:
    (1) Licensees who have applied for license renewal must provide 
financial assurance for decommissioning during the period that they 
remain in timely renewal. This is addressed through the addition of 
Paragraph (c)(4) to Secs. 30.35, 40.36, and 70.25. Licensees currently 
in timely renewal would need to have the required financial assurance 
instrument when this rule if adopted as a final rule, becomes 
effective, 90 days after publication of the final rule in the Federal 
Register. Specific comments are solicited on the adequacy of the 90 day 
time period for licensees currently in timely renewal to obtain the 
required financial assurance instrument;
    (2) Each decommissioning funding plan must include a certification 
by the licensee that financial assurance for decommissioning has been 
provided in the amount of the cost estimate. This is addressed through 
a modification to Paragraph (e) of Secs. 30.35, 40.36, and 70.25;
    (3) The decommissioning financial assurances provided by the 
licensee in conjunction with a license renewal or issuance must remain 
in effect during the period of decommissioning and must be increased or 
may be decreased, as appropriate, within 90 days of the licensee notice 
of termination of activities and request to terminate the license. This 
is necessary to cover the detailed estimated decommissioning costs 
developed as part of the decommissioning plan. This is addressed 
through the addition of Paragraph (b)(2) to Secs. 30.36, 40.42, and 
70.38, and Paragraph (a)(2) to Sec. 72.54;
    (4) Any licensee who submits a notice of termination of activities 
and request to terminate the license, and has not provided appropriate 
financial assurance for decommissioning, shall do so within 90 days of 
the notice. This is addressed through the addition of a new Paragraph 
(b)(2)(i) to Secs. 30.36, 40.42, and 70.38, and Paragraph (a)(2)(i) to 
Sec. 72.54. Any licensee who has already submitted a notice of 
termination of activities and request to terminate the license would 
need to have the required financial assurance instrument when this 
rule, if adopted as a final rule, becomes effective, 90 days after 
publication of the final rule in the Federal Register; and
    (5) Licensees may reduce the amount of financial assurance 
semiannually as decommissioning proceeds and radiological contamination 
is reduced at the site, with the approval of the Commission. This is 
addressed through the addition of a new Paragraph (b)(2)(ii) to 
Secs. 30.36, 40.42, and 70.38, and Paragraph (a)(2)(ii) to Sec. 72.54. 
The semiannual interval is proposed as a balance between the financial 
incentive that this provision gives to licensees to proceed promptly 
with the decommissioning work after approval of the decommissioning 
plan and the burden imposed on both the licensee and staff in 
implementing a reduction. Specific comments are solicited on the 
interval proposed.

Environmental Impact: Categorical Exclusion

    The NRC has determined that this proposed rule is the type of 
action described in categorical exclusion 10 CFR 51.22(c)(2). 
Therefore, neither an environmental impact statement nor an 
environmental assessment has been prepared for this proposed rule.

Paperwork Reduction Act Statement

    This proposed rule amends information collection requirements that 
are subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501, et 
seq.). This rule has been submitted to the Office of Management and 
Budget for review and approval of the information collection 
requirements.
    The public reporting burden for this collection of information is 
estimated to average 6 hours per response, including time for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information. Send comments regarding this burden estimate 
or any other aspect of this collection of information, including 
suggestions for reducing the burden, to the Information and Records 
Management Branch (T-6-F33), U.S. Nuclear Regulatory Commission, 
Washington, DC 20555-0001, and to the Desk Officer, Office of 
Information and Regulatory Affairs, NEOB-3019, (3150-0017, 3150-0020, 
3150 0009, and 3150-0132), Office of Management and Budget, Washington, 
DC 20503.

Regulatory Analysis

    The Commission has prepared this proposed regulation to clarify its 
decommissioning funding requirements for persons licensed under Parts 
30, 40, 70, and 72. Although it does alter existing requirements, 
regulatory analyses developed in support of prior decommissioning 
regulations remain valid and appropriate for this rulemaking because 
these analyses assumed that all licensees would submit a certification 
of financial assurance to the NRC of a rule prescribed amount, or 
licensee estimated and NRC approved amount, necessary to provide 
adequate funds to decommission the licensed facility and that licensees 
would have complied with the decommissioning funding requirements prior 
to ceasing operations and commencing decommissioning. These prior 
analyses, developed for the rules on expiration and termination 
licenses and financial assurances for decommissioning, remain available 
for inspection in the NRC Public Document Room, 2120 L Street, NW. 
(Lower Level), Washington, DC. This discussion constitutes the 
regulatory analysis for this proposed rule.

Regulatory Flexibility Certification

    As required by the Regulatory Flexibility Act of 1980, 5 U.S.C. 
605(b), the NRC carefully considered the effect on small entities in 
developing the final rule on decommissioning funding and scaled the 
requirements to reduce the impact on small entities to the extent 
possible while adequately protecting health and safety. Therefore, it 
is not expected to have an impact on licensees not already analyzed in 
the regulatory flexibility analysis for the decommissioning funding 
rule as published in the Federal Register on June 27, 1988 (53 FR 
24018).
    Accordingly, the Commission certifies that this proposed rule, if 
adopted, will not have any additional significant economic impact upon 
a substantial number of small entities.

Backfit Analysis

    The NRC has determined that the backfit rule, 10 CFR 50.109, does 
not apply to this rule, and therefore, a backfit analysis is not 
required for this rule because these amendments do not involve any 
provisions which would impose backfits as defined in 10 CFR 
50.109(a)(1).

List of Subjects

10 CFR Part 30

    Byproduct material, Criminal penalties, Government contracts, 
Intergovernmental relations, Isotopes, Nuclear materials, Radiation 
protection, Reporting and recordkeeping requirements.

10 CFR Part 40

    Criminal penalties, Government contracts, Hazardous materials--
transportation, Nuclear materials, Reporting and recordkeeping 
requirements, Source material, Uranium.

10 CFR Part 70

    Criminal penalties, Hazardous materials--transportation, Material 
control and accounting, Nuclear materials, Packaging and containers. 
Radiation protection, Reporting and recordkeeping requirements, 
Scientific equipment, Security measures, Special nuclear material.

10 CFR Part 72

    Criminal penalties, Manpower training programs, Nuclear materials, 
Occupational safety and health, Reporting and recordkeeping 
requirements, Security measures, Spent fuel.

    For the reasons set out in the preamble and under the authority of 
the Atomic Energy Act of 1954, as amended, the Energy Reorganization 
Act of 1974, as amended, and 5 U.S.C. 553, the NRC is proposing to 
adopt the following amendments to 10 CFR Parts 30, 40, 70, and 72.

PART 30--RULES OF GENERAL APPLICABILITY TO DOMESTIC LICENSING OF 
BYPRODUCT MATERIAL

    1. The authority citation for part 30 continues to read as follows:

    Authority: Secs. 81, 82, 161, 182, 183, 186, 68 Stat. 935, 948, 
953, 954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42 
U.S.C. 2111, 2112, 2201, 2232, 2233, 2236, 2282); secs. 201, as 
amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 
5841, 5842, 5846).
    Section 30.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat. 
2951 (42 U.S.C. 5851). Section 30.34(b) also issued under sec. 184, 
68 Stat. 954, as amended (42 U.S.C. 2234). Section 30.61 also issued 
under sec. 187, 68 Stat. 955 (42 U.S.C. 2237).

    2. Section 30.35 is amended by revising paragraphs (b)(2), (c)(2), 
(c)(3), and (e) and by adding a new paragraph (c)(4) to read as 
follows:


Sec. 30.35  Financial assurance and recordkeeping for decommissioning.

* * * * *
    (b) * * *
    (2) Submit a certification that financial assurance for 
decommissioning has been provided in the amount prescribed by paragraph 
(d) of this section using one of the methods described in paragraph (f) 
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 before the receipt of licensed 
material. If the applicant defers execution of the financial instrument 
until after the license has been issued, the executed original copy of 
the financial instrument obtained to satisfy the requirements of 
paragraph (f) of this section must be submitted to NRC before receipt 
of licensed material. If the applicant does not defer execution of the 
financial instrument, the applicant shall submit to NRC, as part of the 
certification, an executed original copy of the financial instrument 
obtained to satisfy the requirements of paragraph (f) of this section.
    (c) * * *
    (2) Each holder of a specific license issued before July 27, 1990, 
and of a type described in paragraph (a) of this section shall submit, 
on or before July 27, 1990, a decommissioning funding plan as described 
in paragraph (e) of this section or a certification of financial 
assurance for decommissioning in an amount at least equal to $750,000 
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.
    (3) Each holder of a specific license issued before July 27, 1990, 
and of a type described in paragraph (b) of this section shall submit, 
on or before July 27, 1990, a decommissioning funding plan as 
described, in paragraph (e) of this section, or a certification of 
financial assurance for decommissioning in accordance with the criteria 
set forth in this section.
    (4) Any licensee who has submitted an application before July 27, 
1990, for renewal of license in accordance with Sec. 30.37 shall 
provide financial assurance for decommissioning in accordance with 
paragraphs (a) and (b) of this section.
* * * * *
    (e) Each decommissioning funding plan must contain a cost estimate 
for decommissioning and a description of the method of assuring funds 
for decommissioning from paragraph (f) of this section, including means 
for adjusting cost estimates and associated funding levels periodically 
over the life of the facility. The decommissioning funding plan must 
also contain a certification by the licensee that financial assurance 
for decommissioning has been provided in the amount of the cost 
estimate for decommissioning and an executed original copy of the 
financial instrument obtained to satisfy the requirements of paragraph 
(f) of this section.
* * * * *
    3. Section 30.36 is amended by redesignating paragraph (b) as 
(b)(1) and adding a new paragraph (b)(2) to read as follows:


Sec. 30.36  Expiration and termination of licenses.

* * * * *
     (b) * * *
    (2) Upon licensee notice of termination of activities and request 
to terminate the license as required by paragraph (b)(1) of this 
section, the licensee must maintain in effect all decommissioning 
financial assurances established by the licensee pursuant to Sec. 30.35 
in conjunction with a license issuance or renewal or as required by 
this section. The amount of the financial assurance must be increased, 
or may be decreased, as appropriate, within 90 days of the notice, to 
cover the detailed cost estimate for decommissioning established 
pursuant to paragraph (c)(2)(iii)(D) of this section.
    (i) A licensee who has not provided financial assurance for 
decommissioning at the time of submittal of the notice of termination 
of activities and request to terminate the license as required by 
paragraph (b)(1) of this section shall provide (by 90 days after 
publication of the final rule) financial assurance for decommissioning 
in an amount and form that complies with the requirements of Sec. 30.35 
according to the possession limits in the license.
    (ii) Following approval of the decommissioning plan, a licensee may 
reduce the amount of the financial assurance semiannually, as 
decommissioning proceeds and radiological contamination is reduced at 
the site, with the approval of the Commission.
* * * * *

PART 40--DOMESTIC LICENSING OF SOURCE MATERIAL

    4. The authority citation for Part 40 continues to read as follows:
    Authority: Secs. 62, 63, 64, 65, 81, 161, 182, 183, 186, 68 
Stat. 932, 933, 935, 948, 953, 954, 955, as amended, secs. 11e2, 83, 
84, Pub. L. 95-604, 92 Stat. 3033, as amended, 3039, sec. 234, 83 
Stat. 444, as amended (42 U.S.C. 2014(e)(2), 2092, 2093, 2094, 2095, 
2111, 2113, 2114, 2201, 2232, 2233, 2236, 2282); sec. 274, Pub. L. 
86-373, 73 Stat. 688 (42 U.S.C. 2021); secs. 201, as amended, 202, 
206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 
5846); sec. 275, 92 Stat. 3021, as amended by Pub. L. 97-415, 96 
Stat. 2067 (42 U.S.C. 2022).

    Section 40.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat. 
2951 (42 U.S.C. 5851). Section 40.31(g) also issued under sec. 122, 
68 Stat. 939 (42 U.S.C. 2152). Section 40.46 also issued under sec. 
184, 68 Stat. 954, as amended (42 U.S.C. 2234), Section 40.71 also 
issued under sec. 187, 68 Stat. 955 (42 U.S.C. 2237).

    5. Section 40.36 is amended by revising paragraphs (b)(2), (c)(2), 
(c)(3), and (d) and by adding a new paragraph (c)(4) to read as 
follows:


Sec. 40.36  Financial assurance and recordkeeping for decommissioning.

* * * * *
    (b) * * *
    (2) Submit a certification that financial assurance for 
decommissioning has been provided in the amount of $150,000 using one 
of the methods described in paragraph (e) 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 before the receipt of licensed material. If the 
applicant defers execution of the financial instrument until after the 
license has been issued, the executed original copy of the financial 
instrument obtained to satisfy the requirements of paragraph (e) of 
this section shall be submitted to NRC prior to receipt of licensed 
material. If the applicant does not defer execution of the financial 
instrument, the applicant shall submit to NRC, as part of the 
certification, an executed original copy of the financial instrument 
obtained to satisfy the requirements of paragraph (e) of this section.
    (c) * * *
    (2) Each holder of a specific license issued before July 27, 1990, 
and of a type described in paragraph (a) of this section shall submit, 
on or before July 27, 1990, a decommissioning funding plan as described 
in paragraph (d) of this section or a certification of financial 
assurance for decommissioning in an amount at least equal to $750,000 
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.
    (3) Each holder of a specific license issued before July 27, 1990, 
and of a type described in paragraph (b) of this section shall submit, 
on or before July 27, 1990, a decommissioning funding plan, as 
described in paragraph (d) of this section, or a certification of 
financial assurance for decommissioning in accordance with the criteria 
set forth in this section.
    (4) Any licensee who has submitted an application before July 27, 
1990, for renewal of license in accordance with Sec. 40.43 shall 
provide financial assurance for decommissioning in accordance with 
paragraphs (a) and (b) of this section.
    (d) Each decommissioning funding plan must contain a cost estimate 
for decommissioning and a description of the method of assuring funds 
for decommissioning from paragraph (e) of this section, including means 
for adjusting cost estimates and associated funding levels periodically 
over the life of the facility. The decommissioning funding plan shall 
also contain a certification by the licensee that financial assurance 
for decommissioning has been provided in the amount of the cost 
estimate for decommissioning and an executed original copy of the 
financial instrument obtained to satisfy the requirements of paragraph 
(e) of this section.
* * * * *
    6. Section 40.42 is amended by redesignating paragraph (b) as 
(b)(1) and adding a new paragraph (b)(2) to read as follows:


Sec. 40.42  Expiration and termination of licenses.

* * * * *
     (b) * * *
    (2) Upon licensee notice of termination of activities and request 
to terminate the license as required by paragraph (b)(1) of this 
section, the licensee must maintain in effect all decommissioning 
financial assurances established by the licensee pursuant to Sec. 40.36 
in conjunction with a license issuance or renewal or as required by 
this section. The amount of the financial assurance must be increased, 
or may be decreased, as appropriate, within 90 days of the notice, to 
cover the detailed cost estimate for decommissioning established 
pursuant to paragraph (c)(2)(iii)(D) of this section.
    (i) A licensee who has not provided financial assurance for 
decommissioning at the time of submittal of the notice of termination 
of activities and request to terminate the license as required by 
paragraph (b)(1) of this section shall provide (by 90 days after 
publication of the final rule) financial assurance for decommissioning 
in an amount and form that complies with the requirements of Sec. 40.36 
according to the possession limits in the license.
    (ii) Following approval of the decommissioning plan, a licensee may 
reduce the amount of the financial assurance semiannually, as 
decommissioning proceeds and radiological contamination is reduced at 
the site, with the approval of the Commission.
* * * * *

PART 70--DOMESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL

    7. The authority citation for Part 70 continues to read as follows:

    Authority: Secs. 51, 53, 161, 182, 183, 68 Stat. 929, 930, 948, 
953, 954, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 
2071, 2073, 2201, 2232, 2233, 2282); Secs. 201, as amended, 202, 
204, 206, 88 Stat. 1242, as amended, 1244, 1245, 1246 (42 U.S.C. 
5841), 5942, 5845, 5846).

    Sections 70.1(c) and 70.20(b) also issued under secs. 135, 141 
Pub. L. 97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161). 
Section 70.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat. 
2951 (42 U.S.C. 5851). Section 70.21(g) also issued under sec. 122, 
68 Stat. 939 (42 U.S.C. 2152). Section 70.31 also issued under sec. 
57d, Pub. L. 93-377, 86 Stat. 475 (42 U.S.C. 2077). Sections 70.36 
and 70.44 also issued under sec. 184, 68 Stat. 954, as amended (42 
U.S.C. 2234). Section 70.61 also issued under secs. 186, 187, 68 
Stat. 955 (42 U.S.C. 2236, 2237). Section 70.62 also issued under 
sec. 106, 68 Stat. 939, as amended (42 U.S.C. 2138).

    8. Section 70.25 is amended by revising paragraphs (b)(2), (c)(2), 
(c)(3), and (e) and by adding a new paragraph (c)(4) to read as 
follows:


Sec. 70.25  Financial assurance and recordkeeping for decommissioning.

* * * * *
    (b) * * *
    (2) Submit a certification that financial assurance for 
decommissioning has been provided in the amount prescribed by paragraph 
(d) of this section using one of the methods described in paragraph (f) 
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 before the receipt of licensed 
material. If the applicant defers execution of the financial instrument 
until after the license has been issued, the executed original copy of 
the financial instrument obtained to satisfy the requirements of 
paragraph (f) of this section shall be submitted to NRC before receipt 
of licensed material. If the applicant does not defer execution of the 
financial instrument, the applicant shall submit to NRC, as part of the 
certification, an executed original copy of the financial instrument 
obtained to satisfy the requirements of paragraph (f) of this section.
    (c) * * *
    (2) Each holder of a specific license issued before July 27, 1990, 
and of a type described in paragraph (a) of this section shall submit, 
on or before July 27, 1990, a decommissioning funding plan as described 
in paragraph (e) of this section or a certification of financial 
assurance for decommissioning in an amount at least equal to $750,000 
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 at this time, the licensee shall include a 
decommissioning funding plan in any application for license renewal.
    (3) Each holder of a specific license issued before July 27, 1990, 
and of a type described in paragraph (b) of this section shall submit, 
on or before July 27, 1990, a decommissioning funding plan, described 
in paragraph (e) of this section, or a certification of financial 
assurance for decommissioning in accordance with the criteria set forth 
in this section.
    (4) Any licensee who has submitted an application before July 27, 
1990, for renewal of license in accordance with Sec. 70.33 shall 
provide financial assurance for decommissioning in accordance with 
paragraphs (a) and (b) of this section.
* * * * *
    (e) Each decommissioning funding plan must contain a cost estimate 
for decommissioning and a description of the method of assuring funds 
for decommissioning from paragraph (f) of this section, including means 
for adjusting cost estimates and associated funding levels periodically 
over the life of the facility. The decommissioning funding plan must 
also contain a certification by the licensee that financial assurance 
for decommissioning has been provided in the amount of the cost 
estimate for decommissioning and an executed original copy of the 
financial instrument obtained to satisfy the requirements of paragraph 
(f) of this section.
* * * * *
    9. Section 70.38 is amended by redesignating paragraph (b) as 
(b)(1) and adding a new paragraph (b)(2) to read as follows:


Sec. 70.38  Expiration and termination of licenses.

* * * * *
    (b) * * *
    (2) Upon licensee notice of termination of activities and request 
to terminate the license as required by paragraph (b)(1) of this 
section, the licensee shall maintain in effect all decommissioning 
financial assurances established by the licensee pursuant to Sec. 70.25 
in conjunction with a license issuance or renewal or as required by 
this section. The amount of the financial assurance must be increased, 
or may be decreased, as appropriate, within 90 days of the notice, to 
cover the detailed cost estimate for decommissioning established 
pursuant to paragraph (c)(2)(iii)(E) of this section.
    (i) A licensee who has not provided financial assurance for 
decommissioning at the time of submittal of the notice of termination 
of activities and request to terminate the license as required by 
paragraph (b)(1) of this section, shall provide (by 90 days after 
publication of the final rule) financial assurance for decommissioning 
in an amount and form that complies with the requirements of Sec. 70.25 
according to the possession limits in the license.
    (ii) Following approval of the decommissioning plan, a licensee may 
reduce the amount of the financial assurance semiannually as 
decommissioning proceeds and radiological contamination is reduced at 
the site, with the approval of the Commission.
* * * * *

PART 72--LICENSING REQUIREMENTS FOR THE INDEPENDENT STORAGE OF 
SPENT NUCLEAR FUEL AND HIGH-LEVEL RADIOACTIVE WASTE

    10. The authority citation for Part 72 continues to read as 
follows:

    Authority: Secs. 51, 53, 57, 62, 63, 65, 69, 81, 161, 182, 183, 
184, 186, 187, 189, 68 Stat. 929, 930, 932, 933, 934, 935, 948, 953, 
954, 955, as amended, sec. 234, 83 Stat. 444, as amended, (42 U.S.C. 
2071, 2073, 2077, 2092, 2093, 2095, 2099, 2111, 2201, 2232, 2233, 
2234, 2236, 2237, 2238, 2282); sec. 274 Pub. L. 86-373, 73 Stat. 
688, as amended (42 U.S.C. 2021); sec. 201, as amended, 202, 206, 88 
Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846); 
Pub. L. 95-601, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851); sec. 102, 
Pub. L. 91-190, 83 Stat. 853) (42 U.S.C. 4332); Secs. 131, 132, 133, 
135, 137, 141, Pub. L. 97-425, 96 Stat. 2229, 2230, 2232, 2241, sec. 
148, Pub. L. 100-203, 101 Stat. 1330-235 (42 U.S.C. 10151, 10152, 
10153, 10155, 10157, 10161, 10168).
    Section 72.44(g) also issued under secs. 142(b) and 148(c), (d), 
Pub. L. 100-203, 101 Stat. 1330-232, 1330-236 (42 U.S.C. 10162(b), 
10168(c), (d)). Section 72.46 also issued under sec. 189, 68 Stat. 
955 (42 U.S.C. 2239); sec. 134 Pub. L. 97-425, 96 Stat. 2230 (42 
U.S.C. 10154). Section 72.96(d) also issued under sec. 145(g), Pub. 
L. 100-203, 101 Stat. 1330-235 (42 U.S.C. 10165(g)). Subpart J also 
issued under secs. 2(2), 2(15), 2(19), 117(a), 141(h), Pub. L. 97-
425, 96 Stat. 2202, 2203, 2204, 2222, 2244 (42 U.S.C. 10101, 
10137(a), 10161(h)). Subparts K and L are also issued under sec. 
133, 98 Stat. 2230 (42 U.S.C. 10153) and sec. 218(a), 96 Stat. 2252 
(42 U.S.C. 10198).

    11. Section 72.54 is amended by redesignating paragraph (a) as 
(a)(1) and adding a new paragraph (a)(2) to read as follows:


Sec. 72.54  Application for termination of license.

* * * * *
    (a) * * *
    (2) Upon licensee notice of termination of activities and request 
to terminate the license as required by paragraph (a)(1) of this 
section, the licensee shall maintain in effect all decommissioning 
financial assurances established by the licensee pursuant to Sec. 72.30 
in conjunction with a license issuance or renewal or as required by 
this section. The amount of the financial assurance shall be increased, 
or may be decreased, as appropriate, within 90 days of the notice, to 
cover the detailed cost estimate for decommissioning established 
pursuant to paragraph (b)(6) of this section.
    (i) A licensee who has not provided financial assurance for 
decommissioning at the time of submittal of the notice of termination 
of activities and request to terminate the license required by 
paragraph (a)(1) of this section, must provide, within 90 days, 
financial assurance for decommissioning in an amount and form that 
complies with the requirements of Sec. 72.30.
    (ii) Following approval of the decommissioning plan, a licensee may 
reduce the amount of the financial assurance semiannually as 
decommissioning proceeds and radiological contamination is reduced at 
the site, with the approval of the Commission.
* * * * *
    Dated at Rockville, Maryland, this 15th day of June 1994.

    For the Nuclear Regulatory Commission.
John C. Hoyle,
Acting Secretary of the Commission.
[FR Doc. 94-15022 Filed 6-21-94; 8:45 am]
BILLING CODE 7590-01-P