[Federal Register Volume 60, Number 143 (Wednesday, July 26, 1995)]
[Rules and Regulations]
[Pages 38234-38240]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18315]



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[[Page 38235]]


NUCLEAR REGULATORY COMMISSION

10 CFR Parts 30, 40, 70, and 72

RIN 3150-AE95


Clarification of Decommissioning Funding Requirements

AGENCY: Nuclear Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Nuclear Regulatory Commission is amending its regulations 
applicable to decommissioning funding assurance and the expiration and 
termination of licenses for nonreactor licensees. These amendments 
clarify requirements that financial assurance must be in place during 
licensed operations and updated when the licensee decides to cease 
operations and begin decommissioning. These regulations require that 
licensees who have been in timely renewal since the promulgation of the 
earlier decommissioning funding rule or who have ceased operation 
without having adequate decommissioning funding arrangements in place 
must provide the NRC with certification of adequate financial assurance 
for decommissioning by the effective date of this rule.

EFFECTIVE DATE: November 24, 1995.

FOR FURTHER INFORMATION CONTACT: Mary L. Thomas, Office of Nuclear 
Regulatory Research, U.S. Nuclear Regulatory Commission, Washington, DC 
20555-0001, telephone (301) 415-6230, E-mail [email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background.
II. Summary of requirements and discussion of comments.
III. Agreement State compatibility.
IV. Implementation.
V. Environmental impact: Categorical Exclusion.
VI. Paperwork reduction act statement.
VII. Regulatory analysis.
VIII. Regulatory flexibility certification.
IX. Backfit analysis.

I. 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 (10 CFR 72.54 (53 FR 24018; 
June 27, 1988)). 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. If 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 sets out the methods and measures for decontamination of the 
property and equipment.
    In the final rule published June 27, 1988, the Commission addressed 
``Financial Assurance and Recordkeeping for Decommissioning'' (10 CFR 
30.35, 40.36, 70.25 and 72.30 (53 FR 24018; June 27,1988)). The rule 
established a graded structure for financial assurance that is based on 
the 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. Before the license 
is issued or renewed, the applicant shall 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 June 27, 1988, rule also required that certain licensees, upon 
their decision to cease operations, must submit decommissioning plans 
that 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.

II. Summary of Requirements and Discussion of Comments

    At the time the decommissioning funding rules were promulgated, it 
was not anticipated that a licensee would move to decommissioning 
without having complied with the financial assurance requirements. 
Since that time a number of licensees who were in timely renewal when 
the June 27, 1988, rule became effective have decided to terminate 
their activities and begin decommissioning. Other licensees who 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 require 
that financial assurances must be in place and updated when the 
licensee decides to cease operations and begin decommissioning to 
assure that adequate funding is available in the event the licensee is 
no longer financially viable.
    Six comment letters were received on the proposed rule. This 
section presents a summary of the requirements in the proposed rule and 
a discussion of the significant issues raised by public comment and how 
they were resolved. The bases and origins of the requirements are also 
explained. The proposed rule was discussed during the October 25-27, 
1993 Agreement States meeting in Tempe, Arizona. No additional comments 
were received from the Agreement States during the public comment 
period. In addition, the draft final rule was sent out to the Agreement 
States for comment regarding the division of compatibility assigned on 
April 14, 1995. The comment period ended May 15, 1995. Five comment 
letters were received. These comment letters are addressed in section 
III, Agreement State Compatibility, of the Federal Register Notice. 
Copies of the public comments received on the proposed rule are 
available for inspection and copying for a fee at the NRC Public 
Document Room, 2120 L Street NW. (Lower Level), Washington, DC 20037.

1. Submission of an Executed Original Copy of the Financial Instrument

    As proposed, Secs. 30.35(b)(2), 40.36(b)(2), 70.25(b)(2) would 
require each licensee to submit an executed original copy of the 
financial instrument obtained to satisfy the requirements of 
Secs. 30.35(f), 40.36(e), or 70.25(f) respectively. Sections 30.35(c) 
(2 and 3), 40.36(c) (2 and 3), and 70.25(c) (2 and 3) would require 
that the licensee submit a decommissioning funding plan as described in 
paragraph (e) of these sections. Sections 30.35(e), 40.36(d), and 
70.25(e) would require the decommissioning funding plan to include a 
cost estimate and a signed original of the financial instrument 
obtained to satisfy the requirements of Secs. 30.35(f), 40.36(e), or 
70.25(f) respectively.
    Comments: One commenter stated that the requirement means that 
every time a licensee restructures the finances that support the 
decommissioning funding requirement, it would have to file a report 
with the NRC. Another commenter stated that the requirement to submit 
an executed original of the financial instrument obtained to satisfy 
the decommissioning funding requirement is overly burdensome and can 
easily lead to confusion and excess paper work. In addition, this 
commenter stated that some licensees may have multiple funding sources 
with different renewal dates and that every time a 

[[Page 38236]]
licensee restructures financially, it will have to submit new 
documentation that the funding for decommissioning is provided. Both 
commenters suggested that the licensee should be able to provide a 
single certification to the NRC stating the funding is available to 
cover the decommissioning costs.
    Response: Submittal of this information will only be necessary in 
the event the old instruments would no longer be valid. The language of 
the final rule has been changed to state that licensees will be 
required to submit a signed original rather than an executed original 
copy of the financial instrument to make it clear that the signed 
original is sufficient provided that it contains the appropriate 
signatures.
2. Decommissioning Funding Plan

    As proposed, Secs. 30.35(c)(4), 40.36(c)(4), and 70.25(c)(4) would 
require licensees who have submitted a renewal application before June 
27, 1990, to submit a decommissioning funding plan.
    Comments: One commenter believes this is a retroactive requirement 
and that licensees who have applied for renewal should not be required 
to have funding in place.
    Response: Although this requirement was not included in the June 
27, 1988, decommissioning rule the Commission anticipated that few 
licensees would not have funding in place within the normal license 
renewal frequency of 5 years. A small number of licensees who were in 
timely renewal when the rule became effective still have not provided 
assurance that they have adequately addressed the issue of 
decommissioning funding. The licensees who have not provided a 
decommissioning funding plan may have only submitted a certification 
based on the table amounts listed in the June 27, 1988, rule which may 
underestimate the actual cost to decommission their facility. This 
requirement will ensure that these licensees will have adequate funding 
in place through submittal of a decommissioning funding plan. The 
requirement does not apply retroactively to make some prior conduct 
improper. Rather, it provides that at a future date November 24, 1995 
licensees currently in a ``timely renewal'' status must provide 
financial assurance in accordance with these regulations.

3. Expiration and Termination of Licenses--90-Day Time Period

    As proposed, Secs. 30.36(b)(2), 40.42(b)(2), 70.38(b)(2) and 
72.54(b)(2) would require licensees, on providing a notice of 
termination of activities and request to terminate the license, to 
maintain in effect all decommissioning financial assurances and to 
increase or decrease the amount of the financial assurance, as 
appropriate, within 90 days of the above notice, to cover the detailed 
cost estimate for decommissioning submitted with the proposed 
decommissioning plan.
    With the publication of the final rule, ``Timeliness in 
Decommissioning of Materials Facilities,'' on July 15, 1994; 59 FR 
36026, these sections were revised to require licensees to submit a 
proposed decommissioning plan within 12 months of the time that they 
notify the Commission that they have not conducted licensed activities 
for 24 months or to commence decommissioning if they are not required 
to submit a decommissioning plan. These requirements are now located in 
Secs. 30.35(e), 40.42(e), 70.38(e) and 72.54(e) in this final rule.
    Comments: Four commenters stated that they did not understand the 
90-day time period to obtain financial assurance as discussed in the 
proposed rule. One asked why a 90-day time period was chosen as opposed 
to 180 days. Another indicated that the time period presumes that the 
licensee's proposed decommissioning plan will be approved by the NRC 
without modification.
    Response: The final rule was modified to permit some additional 
time for licensees who have already submitted a decommissioning plan to 
update their financial assurance to meet the detailed cost estimate 
included in the proposed decommissioning plan. The final rule will 
require licensees to increase, or allow them to decrease, the amount of 
financial assurance to correspond to the detailed cost estimate 
submitted with the decommissioning plan. The NRC lengthened the time 
period for obtaining financial assurance from 90 days to 120 days, but 
did not adopt the comment to lengthen the time period to 180 days. 
Because this requirement only addresses licensees who have already 
submitted a decommissioning plan with an updated cost estimate, a 
period of 120 days to acquire the funding seems to be a reasonable 
amount of time and lowers the risk that any change in the licensee's 
financial status could jeopardize their ability to provide for adequate 
funding. For the aforementioned reason, the Commission did not adopt 
the comment to permit time for NRC approval of the decommissioning 
plan. It should be noted that a provision is included that would permit 
a reduction in the amount of financial assurance following 
decommissioning plan approval.

4. Frequency for Applying for Reduction in Funds

    As proposed, Secs. 30.36(b)(2)(ii), 40.42(b)(2)(ii), 
70.38(b)(2)(ii), and 72.54(b)(2)(ii) would allow licensees to apply for 
a reduction in decommissioning funds with a reduction in radioactive 
contamination levels as decommissioning proceeds. The proposed rule 
would have established a semiannual frequency for these reductions.
    Comments: One commenter stated that permitting access to the funds 
only on a semiannual basis seemed unnecessarily restrictive. Another 
commenter stated that this aspect of the rule appears to require that 
funds be accessed prior to the performance of previously approved 
decommissioning tasks for which the funds were intended to be used, and 
that licensees be allowed to access the funds as they are needed.
    Response: In response to comments, the NRC has revised the final 
rule to remove restrictions in frequency for these requests. Currently, 
a set amount of money is required in advance that must be available 
through the end of decommissioning and could result in an unnecessary 
burden on the licensee. This modification permits a reduction in these 
funds provided the radioactive contamination has been reduced at the 
site. Because licensees must obtain approval from the Commission to 
reduce funds, there will be adequate assurance that the licensee has 
sufficient funds available to cover the cost to complete 
decommissioning of the facility. These requirements are now located in 
Secs. 30.35(e)(2), 40.42(e)(2), 70.38(e)(2) and 72.54(e)(2) in this 
final rule.

5. Small Entities

    Comment: One commenter and the State of New York asked that small 
entities be exempt from decommissioning financial assurance.
    Response: The majority of small entities are already excepted from 
the decommissioning funding requirements because they possess limited 
quantities of radioactive materials. These amendments would not impact 
the remainder of small entities that have already complied with the 
applicable funding requirements.

III. Agreement State Compatibility

    The draft final rule was sent out to the Agreement States on April 
14, 1995 for comment. Five comment letters were received. The State of 
Tennessee suggested that each individual State be allowed to establish 
its own 

[[Page 38237]]
methodology. The State of New York suggested that the rule give the 
States the latitude to accomplish the rule's intent by other means such 
as licensing actions. The State of Washington suggested that the rule 
should be made Division 3 compatibility because the rule is addressing 
financing, not health and safety; the rule overlooks other mechanisms 
for protecting the public, such as whatever means necessary to effect 
decommissioning; and the specific changes are applicable to NRC 
licensees and not Washington licensees. The States of Nebraska and 
Maryland suggested that the rule remain Division 2 compatibility.
    The NRC has reviewed the definitions of divisions of Agreement 
State compatibility and has considered the comments from the States and 
has determined that the rule should be a matter of Division 2 
compatibility between the Federal and State because these requirements 
are the minimum requirements necessary to ensure adequate protection of 
the public health and safety. Under this level of compatibility, the 
Agreement States would be expected to adopt decommissioning funding 
assurance requirements that are as stringent as NRC's, but would be 
permitted flexibility to apply more stringent requirements if deemed 
appropriate by the State.

IV. Implementation

    This rule will become effective 120 days after publication in the 
Federal Register. Thus, licensees who do not currently have sufficient 
financial assurance for decommissioning, but who currently have 
submitted decommissioning plans or are in timely renewal, have 120 days 
to revise and submit to NRC their financial arrangements for funding 
decommissioning.
V. Environmental Impact: Categorical Exclusion

    The NRC has determined that this 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 was prepared for this rule.

VI. Paperwork Reduction Act Statement

    This final rule amends information collection requirements that are 
subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501, et 
seq.). These requirements were approved by the Office of Management and 
Budget approval numbers 3150-0009, -0017, -0020, and -0132.
    The public reporting burden for this collection of information is 
estimated to average 6 hours per response, including time for reviewing 
instruction, 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 suggestion for 
reducing the burden, to the Information Records and 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-10202, (3150-0017, 3150-0020, 3150-0009, and 3150-0132), 
Office of Management and Budget, Washington, DC 20503.

VII. Regulatory Analysis

    The Commission has prepared this regulation to clarify its 
decommissioning funding requirements for persons licensed under Parts 
30, 40, 70, and 72. Although it does alter existing requirements, the 
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 of 
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 rule.

VIII. 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. Because this 
action imposes no new financial burden, it is not expected to have an 
impact on licensees not already considered 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 rule will not have 
any additional significant economic impact upon a substantial number of 
small entities.

IX. 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, and 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. 552 and 553, the NRC is adopting 
the following amendments to 10 CFR parts 30, 40, 70, and 72. 

[[Page 38238]]


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 as amended by Pub. L. 102-486, sec. 2902, 106 Stat. 3123 (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, a signed original 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, a signed original 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. This assurance must be 
submitted when this rule becomes effective November 24, 1995.
* * * * *
    (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 a signed original of the financial 
instrument obtained to satisfy the requirements of paragraph (f) of 
this section.
* * * * *
    3. Section 30.36 is amended by redesignating paragraphs (e) through 
(j) as (f) through (k) and adding a new paragraph (e) to read as 
follows:


Sec. 30.36  Expiration and termination of licenses and decommissioning 
of sites and separate buildings or outdoor areas.

* * * * *
    (e) Coincident with the notification required by paragraph (d) of 
this section, the licensee shall 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, to cover the detailed cost 
estimate for decommissioning established pursuant to paragraph 
(g)(4)(v) of this section.
    (1) Any licensee who has not provided financial assurance to cover 
the detailed cost estimate submitted with the decommissioning plan 
shall do so when this rule becomes effective November 24, 1995.
    (2) Following approval of the decommissioning plan, a licensee may 
reduce the amount of the financial assurance 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 as amended by Pub. L. 102-486, sec. 2902, 106 Stat. 3123 (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, a signed original of the financial instrument 
obtained to satisfy the requirements of paragraph (e) of this section 
must 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, a signed 
original of the financial 

[[Page 38239]]
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. This assurance must be 
submitted when this rule becomes effective November 24, 1995.
    (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 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 a signed original of the financial 
instrument obtained to satisfy the requirements of paragraph (e) of 
this section.
* * * * *
    6. Section 40.42 is amended by redesignating paragraphs (e) through 
(k) as (f) through (l) and adding a new paragraph (e) to read as 
follows:
Sec. 40.42  Expiration and termination of licenses and decommissioning 
of sites and separate or outdoor areas.

* * * * *
    (e) Coincident with the notification required by paragraph (d) of 
this section, the licensee shall 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, to cover the detailed cost 
estimate for decommissioning established pursuant to paragraph 
(g)(4)(v) of this section.
    (1) Any licensee who has not provided financial assurance to cover 
the detailed cost estimate submitted with the decommissioning plan 
shall do so when this rule becomes effective November 24, 1995.
    (2) Following approval of the decommissioning plan, a licensee may 
reduce the amount of the financial assurance 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), 5842, 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 as amended by Pub. L. 102-486, sec. 2902, 106 Stat. 3123 (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, a signed original 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, a signed original 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. This assurance must be 
submitted when this rule becomes effective November 24, 1995.
* * * * *
    (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 

[[Page 38240]]
certification by the licensee that financial assurance for 
decommissioning has been provided in the amount of the cost estimate 
for decommissioning and a signed original of the financial instrument 
obtained to satisfy the requirements of paragraph (f) of this section.
* * * * *
    9. Section 70.38 is amended by redesignating paragraph (e) through 
(j) as (f) through (k) and adding a new paragraph (e) to read as 
follows:


Sec. 70.38  Expiration and termination of licenses and decommissioning 
of sites and separate buildings or outdoor areas.

* * * * *
    (e) Coincident with the notification required by paragraph (d) of 
this section, the licensee shall 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, to cover the detailed cost 
estimate for decommissioning established pursuant to paragraph 
(g)(4)(v) of this section.
    (1) Any licensee who has not provided financial assurance to cover 
the detailed cost estimate submitted with the decommissioning plan 
shall do so when this rule becomes effective November 24, 1995.
    (2) Following approval of the decommissioning plan, a licensee may 
reduce the amount of the financial assurance 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 as amended by Pub. L. 102-
486, sec. 2902, 106 Stat. 3123 (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 (e) through 
(l) as (f) through (m) and adding a new paragraph (e) to read as 
follows:


Sec. 72.54  Expiration and termination of licenses and decommissioning 
of sites and separate buildings or outdoor areas.

* * * * *
    (e) Coincident with the notification required by paragraph (d) 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 must be increased, 
or may be decreased, as appropriate, to cover the detailed cost 
estimate for decommissioning established pursuant to paragraph (g)(5) 
of this section.
    (1) Any licensee who has not provided financial assurance to cover 
the detailed cost estimate submitted with the decommissioning plan 
shall do so when this rule becomes effective November 24, 1995.
    (2) Following approval of the decommissioning plan, a licensee may 
reduce the amount of the financial assurance as decommissioning 
proceeds and radiological contamination is reduced at the site with the 
approval of the Commission.
* * * * *
    Dated at Rockville, MD., this 20th day of July, 1995.

    For the Nuclear Regulatory Commission.
John C. Hoyle,
Secretary of the Commission.
[FR Doc. 95-18315 Filed 7-25-95; 8:45 am]
BILLING CODE 7590-01-P