[Federal Register Volume 62, Number 83 (Wednesday, April 30, 1997)]
[Proposed Rules]
[Pages 23394-23402]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-11203]


=======================================================================
-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

10 CFR Parts 30, 40, 50, 70, and 72

RIN 3150-AF64


Self-Guarantee of Decommissioning Funding by Non-Profit and Non-
Bond Issuing Licensees

AGENCY: Nuclear Regulatory Commission.


[[Page 23395]]


ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Nuclear Regulatory Commission is proposing to amend its 
regulations to allow additional materials licensees and non-electric 
utility reactor licensees who meet certain financial criteria to self-
guarantee funding for decommissioning. Certain commercial corporate 
licensees who issue bonds are presently allowed to self-guarantee 
funding if they meet stringent financial criteria. The proposed rule 
would allow non-profit licensees, such as colleges, universities, and 
hospitals, and also some commercial licensees who do not issue bonds, 
to self-guarantee funding, provided they meet similarly stringent 
financial criteria. Allowing qualified non-profit and non-bond-issuing 
licensees to use self-guarantee would reduce the costs of complying 
with NRC financial assurance requirements while providing adequate 
confidence to the NRC that funds for decommissioning will be available 
when needed.

DATES: Submit comments by July 29, 1997. Comments received after this 
date will be considered if it is practical to do so, but the NRC is 
able to assure consideration only for comments received on or before 
this date.

ADDRESSES: Comments may be sent to the Secretary, U.S. Nuclear 
Regulatory Commission, Washington, DC 20555-0001, Attn: Docketing and 
Service Branch. Hand deliver comments to 11545 Rockville Pike, 
Rockville, Maryland, between 7:45 a.m. and 4:15 p.m. on Federal 
workdays.
    Single copies of this proposed rulemaking may be obtained by 
written request to Distribution and Services Section, Printing, 
Graphics and Mail Services Branch, Office of Administration, U.S. 
Nuclear Regulatory Commission, Washington DC 20555-0001, or by telefax 
to (301) 415-2260. For information on submitting comments 
electronically see the discussion under Electronic Access in the 
Supplementary Information section. Certain documents related to this 
rulemaking, including comments received, may be examined at the NRC 
Public Document Room, 2120 L Street NW. (Lower Level), Washington, DC. 
These same documents also may be viewed and downloaded electronically 
via the Electronic Bulletin Board established by NRC for this 
rulemaking as indicated in the discussion under Electronic Access.

FOR FURTHER INFORMATION CONTACT: Dr. Clark Prichard, Office of Nuclear 
Regulatory Research, U.S. Nuclear Regulatory Commission, Washington, DC 
20555, telephone (301)415-6203, e-mail [email protected].

SUPPLEMENTARY INFORMATION: Licensees subject to 10 CFR Parts 30, 40, 
70, and 72, whose operations involve the use of substantial amounts of 
nuclear materials, and those subject to 10 CFR Part 50 who are 
applicants for or holders of operating licenses for production or 
utilization facilities must provide financial assurance for 
decommissioning funding by selecting from a variety of mechanisms: 
surety bond or letter of credit, prepayment, insurance, an external 
sinking fund coupled with a surety or insurance,1 parent 
company guarantee for licensees that have a qualifying corporate 
parent, and, for certain financially strong corporations, self-
guarantee. A statement of intent regarding obtaining funds to satisfy 
decommissioning obligations may be used by some licensees that are 
governmental entities (for example, public universities whose charter 
provides for a direct link to the State Government).
---------------------------------------------------------------------------

    \1\ Pursuant to 10 CFR 50.75(e)(3), an electric utility can 
satisfy the decommissioning funding requirements with an external 
sinking fund, standing alone. This rulemaking does not apply to 
electric utilities, and does not affect the NRC's Advance Notice of 
Proposed Rulemaking which addresses decommissioning funding 
assurance issues associated with electric utility restructuring (see 
Financial Assurance Requirements for Decommissioning Nuclear Power 
Reactors--61 FR 15427 April 8, 1996).
---------------------------------------------------------------------------

    Licensees currently using self-guarantee must pass a stringent 
financial test that is given in Appendix C to 10 CFR Part 30. Self-
guarantee is currently not available to non-profit licensees, such as 
hospitals and universities, or to for-profit licensees who do not issue 
bonds, because the financial test for self-guarantee uses the rating of 
the bonds issued by the licensee as one measure of its financial 
resources and ability to fund decommissioning.
    The NRC has determined that the use of self-guarantee, currently 
limited to bond-issuing industrial corporations, could be made 
available to additional categories of licensees without jeopardizing 
the present high level of financial assurance that the decommissioning 
obligation requires. Allowing qualified non-profit and non-bond issuing 
licensees to use self-guarantee would reduce the costs of complying 
with NRC financial assurance requirements for those who meet the 
specified criteria.

I. Background

    On December 29, 1993 (58 FR 68726), as corrected on January 12, 
1994 (59 FR 1618), the NRC published a notice of final rulemaking that 
allows financially strong corporations with A or better bond ratings 
the option of using self-guarantee as a mechanism for complying with 
the regulations on financial assurance for decommissioning. Self-
guarantee was added to the list of financial assurance mechanisms as a 
cost-saving option for those licensees able to meet the stringent 
financial test required. The NRC's self-guarantee procedure requires 
licensees to pass the financial test annually. In addition, NRC's 
requirements for self-guarantee provide for early reporting by 
licensees of any deterioration in financial condition.
    The NRC's decision to add self-guarantee by qualified licensees to 
the list of approved financial assurance mechanisms came in response to 
a petition for rulemaking filed by General Electric and Westinghouse 
(PRM-30-59, notice of receipt published September 25, 1991 (56 FR 
48445). The petition presented a case for allowing self-guarantee as a 
cost-saving option for corporate licensees able to pass a stringent 
financial test. The NRC published a notice of proposed rulemaking on 
January 11, 1993 (58 FR 3515), in response to the petition. Several 
comment letters were received from universities requesting that self-
guarantee also be applied to non-profit entities able to pass a 
financial test. At that time, the NRC had not conducted an analysis of 
the feasibility of applying self-guarantee to non-profit entities. In 
the final rule, the NRC stated that ``In order to extend the use of 
self-guarantee to non-profit entities, new criteria would have to be 
developed to assess the financial strength of the non-profit licensees. 
Development of financial criteria to assess the qualifications of a 
non-profit entity to provide a self-guarantee is likely to require 
detailed consideration of the different financial accounting methods 
used by medical institutions. The financial accounting and reporting of 
non-profit entities are unique and substantially different from the 
accounting and reporting of for-profit entities'' (58 FR 68728).
    Subsequent to the December 29, 1993, final rule, the Commission 
initiated a study to determine whether criteria could be developed and 
applied by NRC for non-profit licensees and non-bond issuing commercial 
licensees to use self-guarantee while maintaining the required level of 
confidence regarding the availability of decommissioning funds when 
needed. The study, ``Analysis of Potential Self-Guarantee Tests for 
Demonstrating Financial Assurance by Nonprofit Colleges and 
Universities and Hospitals and by

[[Page 23396]]

Business Firms that Do Not Issue Bonds,'' NUREG/CR-6514,2 
identified a variety of financial criteria that could be applied to 
additional categories of licensees regarding the use of self-guarantee. 
The financial criteria proposed here were selected by the NRC based on 
information in this report. The NRC believes that the financial 
criteria proposed in this notice would maintain the high level of 
assurance of availability of decommissioning funding provided by the 
present self-guarantee mechanism for bond-issuing licensees.
---------------------------------------------------------------------------

    \2\ Copies are available for inspection or copying for a fee 
from the NRC Public Document Room at 2120 L St. NW, Washington, DC; 
the PDR's mailing address is Mail Stop LL-6, Washington, DC 20555-
0001; telephone (202) 634-3273; fax (202) 634-3343. Single copies 
are available from the NRC contact.
---------------------------------------------------------------------------

II. Analysis of Financial Criteria

    The NRC must have evidence of adequate financial strength on the 
part of the licensee to ensure that decommissioning funding obligations 
will be met when the need arises. If self-guarantee is permitted, the 
applicant or licensee must submit a basis for concluding that 
decommissioning financial assurance is still provided. Financial 
strength does not necessarily depend on the type of licensee. Many 
colleges and universities have very strong financial positions, with 
large endowment funds that could be used, if needed, for 
decommissioning funding. Some hospitals are also quite financially 
strong. With respect to non-bond issuing commercial firms, their lack 
of any bond issuance could reflect financial resources great enough to 
preclude the need to issue debt.
    If a college, university, or hospital has an A or better bond 
rating, the financial assurance risk of allowing it to self-guarantee 
decommissioning funding is comparable to the financial assurance risk 
of institutions currently allowed to self-guarantee. This risk is also 
based on an A or better bond rating. The risk of default of industrial 
bond issuers with an A or better bond rating has been estimated at less 
than 1 percent annually.3 An A or better bond rating 
indicates that the issuer has passed a stringent review by the 
independent ratings agencies of its ability to meet financial 
obligations. Bond ratings are reviewed often and changed in response to 
changes in the issuer's financial condition. The A or better bond 
rating should be for uninsured bonds. As discussed in NUREG/CR-6514, 
insured bond ratings are in fact the rating of the insuring company and 
may not apply to the institution that holds the NRC license.
---------------------------------------------------------------------------

    \3\ Corporate Bond Defaults and Default Rates, Moodys Special 
Report, January 1991, p. 32.
---------------------------------------------------------------------------

    Regarding financial criteria that are based on factors other than 
bond ratings, quantitative estimates of financial assurance risk are 
not available because of the lack of a large financial database such as 
that maintained by the bond-rating agencies on bond-issuing entities. 
The NRC has deliberately chosen non-bond rating financial criteria that 
are conservative. The NRC regulations have included a self-guarantee 
mechanism for only a few years. It seems prudent to set the threshold 
financial criteria at a high level. At some future time, as more 
experience is gained with self-guarantee, the financial criteria can be 
reviewed, and appropriate revisions can be proposed.

A. Criteria for Colleges and Universities

    Approximately 75 percent of NRC's college and university licensees 
issue bonds and have bond ratings. Bond rating can thus be used as a 
basis for financial criteria for most college and university licensees. 
Note that many college or university licensees are public institutions 
and a large portion of these can use a governmental statement of intent 
that funds for decommissioning will be obtained when necessary, a 
mechanism which does not involve any significant cost to the licensee. 
The NRC believes that the A or better bond rating (for uninsured bonds) 
criterion used in the existing self-guarantee financial test can also 
be used as the criterion in a financial test for use by colleges and 
universities. Even if an applicant or licensee were a non-profit entity 
or a for-profit firm that does not issue bonds, it may obtain a bond 
rating from one of the major ratings agencies. This option would be 
allowed. Having obtained a bond rating, the licensee would be subject 
to the same requirements as the bond-issuing institutions.
    For licensees without a bond rating, a level of unrestricted 
endowment of at least $50 million, or at least 30 times projected 
decommissioning costs, whichever is larger, should be sufficient to 
allow use of self-guarantee. This level of endowment is adequate to 
generate annual income sufficient to cover the upper range of estimated 
decommissioning costs. The multiple of 30 has been chosen because this 
would mean that any level of decommissioning costs could be covered by 
the annual return on an endowment invested at 3 percent.

B. Criteria for Hospitals

    Approximately 50 percent of hospital licensees issue bonds and have 
bond ratings. For the same reasons outlined above, a criterion of an A 
or better bond rating could be used for hospital licensees. The A or 
better rating should be for unguaranteed, uninsured, or 
uncollateralized bonds.
    For hospital licensees without a bond rating, three financial 
ratios are identified as most accurate indicators of financial 
strength: (1) liquidity--(current assets and depreciation fund, divided 
by current liabilities), (2) net revenue--(total revenue less total 
expenses, divided by total revenue), and (3) leverage--(ratio of long 
term debt to net fixed assets). Numerical values for these ratios have 
been developed by reviewing the financial characteristics of hospitals. 
The licensee must meet all three ratios. The proposed values are as 
follows, and based upon the analysis performed for the NRC, represent a 
level of financial risk comparable to an A bond rating:
    (a) Liquidity--(Current assets and depreciation fund, divided by 
current liabilities) greater than or equal to 2.55.
    (b) Net revenue--(Total revenues less total expenditures divided by 
total revenues) greater than or equal to .04.
    (c) Leverage--(Long term debt divided by net fixed assets) less 
than or equal to .67.
    In addition, a hospital must be of a minimum size relative to 
estimated decommissioning costs. The financial test calls for hospital 
operating revenues to be at least 100 times decommissioning costs.

C. Criteria For Non-Bond Issuing Industrial Corporations

    A financial ratios test is an alternative to bond rating which is 
currently allowed by NRC regulations. The NRC parent guarantee test in 
Appendix A to 10 CFR Part 30 includes a ratio test as an alternative to 
a bond rating test. The proposed criterion is Cash Flow divided by 
Total Liabilities greater than 0.15, Total Liabilities divided by Net 
Worth less than 1.5, and Net Worth greater than $10 million or at least 
10 times decommissioning costs, whichever is greater. The financial 
assurance risk of using such a criterion is estimated to be comparable 
to the risk associated with current regulations.4
---------------------------------------------------------------------------

    \4\ ``Analysis of Potential Self-Guarantee Tests for 
Demonstrating Financial Assurance by Nonprofit Colleges and 
Universities and Hospitals and by Business Firms that do not Issue 
Bonds'', NUREG/CR-6514, 1995, p. 47.
---------------------------------------------------------------------------

D. Cost Savings

    Cost savings would result because qualifying licensees would not 
have to purchase other types of financial assurance instruments such as 
letters of

[[Page 23397]]

credit or surety bonds. These types of financial assurance instruments 
typically cost a licensee approximately 1.5 percent per annum of the 
amount of financial assurance purchased.
    Estimates of the numbers of NRC licensees who could qualify for 
self-guarantee under the proposed financial criteria and estimated 
total cost savings on an annual basis are as follows, and for colleges 
and universities includes estimates for the reactors licensed to them 
as well as materials licenses:

------------------------------------------------------------------------
                                                           Total annual 
            Type of licensee                  Number       cost savings 
                                            qualifying      (thousands) 
------------------------------------------------------------------------
College and University..................           25-30      $350--$400
Hospital................................           10-14      $120--$150
Non-Bond Issuing Industrial.............             2-4        $20--$40
------------------------------------------------------------------------

    The total cost savings for all licensees estimated to qualify for 
self-guarantee could range from approximately $500K to $600K per annum. 
Greater cost savings would result if Agreement States allow self-
guarantee for their licensees.
    There would be no significant cost impact on NRC as review time for 
the various financial assurance mechanisms is essentially the same.

III. Section-by-Section Description of Changes

10 CFR Part 30

    Section 30.35 is amended to permit self-guarantee for financial 
assurance which can be used by qualified non-profit licensees and non-
bond issuing licensees.
    Appendix D is added to 10 CFR Part 30 to establish requirements for 
self-guarantee by non-bond issuing commercial licensees. Appendix E is 
added to 10 CFR Part 30 to establish requirements for self-guarantee 
for non-profit college, university, and hospital licensees.

10 CFR Part 40

    Section 40.36 is amended to permit self-guarantee for financial 
assurance which can be used by qualified non-profit licensees and non-
bond issuing licensees.

10 CFR Part 50

    Section 50.75 is amended to permit self-guarantee for financial 
assurance which can be used by qualified non-profit licensees and non-
bond issuing licensees.

10 CFR Part 70

    Section 70.25 is amended to permit self-guarantee for financial 
assurance which can be used by qualified non-profit licensees and non-
bond issuing licensees.

10 CFR Part 72

    Section 72.30 is amended to permit self-guarantee for financial 
assurance which can be used by qualified non-bond issuing licensees.

IV. Issues for Public Comment

(A) Agreement State Implementation Issues

    Financial assurance mechanisms are a Division II compatibility 
item. Agreement States may adopt regulations of equal or greater 
stringency. States would therefore have the option to allow self-
guarantee. An Agreement State does not need to change its financial 
assurance regulations if this proposed rule becomes final. The existing 
Agreement State regulations on financial assurance do not have to 
include self-guarantee as a financial assurance mechanism. Agreement 
States have the flexibility to allow self-guarantee as a financial 
assurance mechanism or not to allow it. The NRC invites comments on the 
general issue of the compatibility status of its financial assurance 
regulations.

(B) Financial Criteria for Non-Bond Issuing Entities

    As discussed, substantial data exist on the default risks 
associated with various levels of bond rating. However, a quantitative 
estimate is not available for the financial assurance risk associated 
with the non-bond rating criteria proposed here. The NRC invites 
comment on whether these proposed criteria are sufficiently rigorous 
with respect to financial assurance risk, or conversely, whether they 
are so stringent as to exclude licensees who should not be excluded 
because their financial position is such that the financial assurance 
risk is acceptable.

Electronic Access

    Comments may be submitted electronically, in either ASCII text or 
WordPerfect format (version 5.1 or later), by calling the NRC 
Electronic Bulletin Board (BBS) on FedWorld. The bulletin board may be 
accessed using a personal computer, a modem, and one of the commonly 
available communications software packages, or directly via Internet. 
Background documents on the rulemaking are also available, as 
practical, for downloading and viewing on the bulletin board.
    If using a personal computer and modem, the NRC rulemaking 
subsystem on FedWorld can be accessed directly by dialing the toll free 
number (800) 303-9672. Communication software parameters should be set 
as follows: parity to none, data bits to 8, and stop bits to 1 (N,8,1). 
Using ANSI or VT-100 terminal emulation, the NRC rulemaking subsystem 
can be accessed by selecting the ``Rules Menu'' option from the ``NRC 
Main Menu.'' Users will find the ``FedWorld Online User's Guides'' 
particularly helpful. Many NRC subsystems and data bases also have a 
``Help/Information Center'' option that is tailored to the particular 
subsystem.
    The NRC subsystem on FedWorld can also be accessed by a direct dial 
phone number for the main FedWorld BBS, (703) 321-3339, or by using 
Telnet via Internet: fedworld.gov. If using (703) 321-3339 to contact 
FedWorld, the NRC subsystem will be accessed from the main FedWorld 
menu by selecting the ``Regulatory, Government Administration and State 
Systems,'' then selecting ``Regulatory Information Mall.'' At that 
point, a menu will be displayed that has an option ``U.S. Nuclear 
Regulatory Commission'' that will take the user to the NRC online main 
menu. The NRC online area also can be accessed directly by typing ``/go 
NRC'' at a FedWorld command line. If the user accesses NRC from 
FedWorld's main menu, he or she may return to FedWorld by selecting the 
``Return to FedWorld'' option from the NRC online Main Menu. However, 
if the user accesses NRC at FedWorld by using NRC's toll-free number, 
he or she will have full access to all NRC systems but will not have 
access to the main FedWorld system.
    If the user contacts FedWorld using Telnet, he or she will see the 
NRC area and menus, including the Rules Menu. Although the user will be 
able to download documents and leave

[[Page 23398]]

messages, he or she will not be able to write comments or upload files 
(comments). If the user contacts FedWorld using FTP, all files can be 
accessed and downloaded but uploads are not allowed; all the user will 
see is a list of files without descriptions (normal Gopher look). An 
index file is available listing and describing all files within a 
subdirectory. There is a 15-minute time limit for FTP access.
    Although FedWorld also can be accessed through the World Wide Web, 
like FTP that mode only provides access for downloading files and does 
not display the NRC Rules Menu.
    For more information on NRC bulletin boards call Mr. Arthur Davis, 
Systems Integration and Development Branch, NRC, Washington, DC 20555, 
telephone (301) 415-5780; e-mail AXD[email protected].

Finding of No Significant Environmental Impact: Availability

    The proposed amendments would allow qualified non-profit and non-
bond-issuing licensees the option of using self-guarantee as a 
mechanism for financial assurance for decommissioning. For-profit 
corporate licensees that issue bonds are already allowed to use self-
guarantee if they meet the regulatory criteria. Other licensees may 
currently elect to use a variety of financial assurance mechanisms, 
such as surety bonds, letters of credit, and escrow accounts to comply 
with decommissioning regulations. The proposed action is intended to 
offer non-profit and non-bond-issuing nuclear materials licensees and 
non-power reactor licensees greater flexibility by allowing an 
additional mechanism for licensees that meet the financial criteria for 
use of self-guarantee.
    This proposed revision to the NRC's regulations simply would add 
one more financial assurance mechanism to the mechanisms currently 
available. It would not affect the cost of decommissioning materials 
and non-power reactor facilities. Allowing self-guarantee for 
additional types of licensees would not lead to any increase in the 
effect on the environment of the decommissioning activities considered 
in the final rule published on June 27, 1988 (53 FR 24018), as analyzed 
in the Final Generic Environmental Impact Statement on Decommissioning 
of Nuclear Facilities (NUREG-0586, August, 1988). 5 
Promulgation of this rule would not introduce any impacts on the 
environment not previously considered by the NRC. Therefore, the 
Commission has determined, under the National Environmental Policy Act 
of 1969, as amended, and the Commission's regulations in subpart A of 
10 CFR Part 51, that this proposed rule would not be a major Federal 
action significantly affecting the quality of the human environment, 
and therefore an environmental impact statement is not required. No 
other agencies or persons were contacted in making this determination, 
and the NRC staff is not aware of any other documents related to the 
environmental impact of this action. The foregoing constitutes the 
environmental assessment and finding of no significant impact for this 
proposed rule.
---------------------------------------------------------------------------

    \5\  Copies of NUREG-0586 are available for inspection or 
copying for a fee from the NRC Public Document Room at 2120 L Street 
NW (Lower Level), Washington, DC 20555-0001; telephone (202)634-
3273; fax (202)634-3343. Copies may be purchased at current rates 
from the U.S. Government Printing Office, P.O. Box 370892, 
Washington, DC 20402-9328 (telephone (202)512-2249); or from the 
National Technical Information Service by writing NTIS at 5285 Port 
Royal Road, Springfield, VA 22161.
---------------------------------------------------------------------------

Paperwork Reduction Act Statement

    This proposed rule amends information collection requirements that 
are subject to the Paperwork Reduction Act of 1995 (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 9-14 hours per response, including the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information. The U.S. Nuclear Regulatory Commission is 
seeking public comment on the potential impact of the collection of 
information contained in the proposed rule and on the following issues:
    1. Is the proposed collection of information necessary for the 
proper performance of the functions of the NRC, including whether the 
information will have practical utility?
    2. Is the estimate of the burden correct?
    3. Is there a way to enhance the quality, utility, and clarity of 
the information to be collected?
    4. How can the burden of the collection of information be 
minimized, including the use of automated collection techniques?
    Send comments on any aspect of this proposed 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, or by Internet 
electronic mail at [email protected]; and to the Desk Officer, Office of 
Information and Regulatory affairs, NEOB-10202, (3150-0017, -0020, -
0011, -0009, and -01320, Office of Management and Budget, Washington, 
DC 20503.
    Comments to OMB on the collections of information or on the above 
issues should be submitted by May 30, 1997. Comments received after 
this date will be considered if it is practical to do so, but assurance 
of consideration cannot be given to comments received after this date.

Public Protection Notification

    The NRC may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless it displays a currently 
valid OMB control number.

Regulatory Analysis

    The NRC has prepared a draft regulatory analysis on this proposed 
regulation. The analysis examines the costs and benefits of the 
alternatives considered by the NRC. The draft analysis is available for 
inspection in the NRC Public Document Room, 2120 L Street NW (Lower 
Level), Washington, DC. Single copies of the analysis may be obtained 
from Clark Prichard, Office of Nuclear Regulatory Research, U.S. 
Nuclear Regulatory Commission, Washington, DC 20555, telephone (301) 
415-6203.
    The NRC requests public comment on the draft analysis. Comments on 
the draft analysis may be submitted to the NRC as indicated under the 
ADDRESSES heading.

Regulatory Flexibility Certification

    In accordance with the Regulatory Flexibility Act of 1980, (5 
U.S.C. 605(b)), the Commission certifies that this rule will not, if 
promulgated, have a significant economic impact on a substantial number 
of small entities. This proposed rule would expand the number of 
options available to licensees to comply with the Commission's 
financial assurance requirements, thus enhancing the flexibility of 
these regulations. It is estimated that this proposed rule, if 
promulgated as final, would result in significant cost savings to 
qualifying licensees.

Backfit Analysis

    The NRC has determined that the backfit rule, 10 CFR 50.109, does 
not apply to this proposed rule and, therefore, that a backfit analysis 
is not

[[Page 23399]]

required for this proposed rule, because 10 CFR 50.109 addresses only 
the process for controlling backfits of nuclear power reactors and this 
proposed rule does not affect the Commission's decommissioning 
financial assurance requirements regarding nuclear power reactors (see 
Statement of Considerations: Final Rule--Revision of Backfitting 
Process for Power Reactors, 50 FR 38097; September 20, 1985).

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 50

    Antitrust, Classified information, Criminal penalties, Fire 
protection, Intergovernmental relations, Nuclear power plants and 
reactors, Radiation protection, Reactor siting criteria, Reporting and 
recordkeeping requirements.

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

    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, 50, 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. In Sec. 30.8 paragraph (b) is revised to read as follows:


Sec. 30.8  Information collection requirements: OMB approval.

* * * * *
    (b) The approved information collection requirements contained in 
this part appear in Secs. 30.9, 30.11, 30.15, 30.19, 30.20, 30.32, 
30.34, 30.35, 30.36, 30.37, 30.38, 30.50, 30.51, 30.55, 30.56, and 
Appendices A, C, D, and E.
* * * * *
    3. In Sec. 30.35, the introductory text of paragraph (f)(2) is 
revised to read as follows:


Sec. 30.35  Financial assurance and recordkeeping for decommissioning.

* * * * *
    (f) * * *
    (2) A surety method, insurance, or other guarantee method. These 
methods guarantee that decommissioning costs will be paid. A surety 
method may be in the form of a surety bond, letter of credit, or line 
of credit. A parent company guarantee of funds for decommissioning 
costs based on a financial test may be used if the guarantee and test 
are as contained in Appendix A to this Part. A parent company guarantee 
may not be used in combination with other financial methods to satisfy 
the requirements of this section. For commercial corporations that 
issue bonds, a guarantee of funds by the applicant or licensee for 
decommissioning costs based on a financial test may be used if the 
guarantee and test are as contained in Appendix C to this Part. For 
commercial companies that do not issue bonds, a guarantee of funds by 
the applicant or licensee for decommissioning costs may be used if the 
guarantee and test are as contained in Appendix D to this Part. For 
non-profit entities, such as colleges, universities, and non-profit 
hospitals, a guarantee of funds by the applicant or licensee may be 
used if the guarantee and test are as contained in Appendix E to this 
Part. A guarantee by the applicant or licensee may not be used in 
combination with any other financial methods used to satisfy the 
requirements of this section or in any situation where the applicant or 
licensee has a parent company holding majority control of the voting 
stock of the company. Any surety method or insurance used to provide 
financial assurance for decommissioning must contain the following 
conditions:
* * * * *
    4. New Appendices D and E to Part 30 are added to read as follows:

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 the following 
criteria:
    (1) Tangible net worth greater than $10 million, or at least 10 
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 company is 
responsible as self-guaranteeing licensee and as parent-guarantor.
    (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 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 
have compared the data used by the company in the financial test, 
which is required to be derived from the independently audited year 
end financial statement based on United States generally accepted 
accounting practices for the latest fiscal year, with the amounts in 
such

[[Page 23400]]

financial statement. In connection with that procedure, the licensee 
shall inform NRC within 90 days of any matters that may 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 repeat 
passage of the test 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 alternate 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. 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 alternate 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 set up and fund a trust in the amount 
of the current cost estimates for decommissioning.

Appendix E to Part 30--Criteria Relating to Use of Financial Tests 
and Self-Guarantee for Providing Reasonable Assurance of Funds for 
Decommissioning by Non-Profit 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

    A. For colleges and universities, to pass the financial test a 
college or university must meet either the criteria in Paragraph II. 
A. (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 as issued by Standard 
and Poors (S&P) or Aaa, Aa, or A as issued by Moodys.
    (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.
    B. For hospitals, to pass the financial test a hospital must 
meet either the criteria in Paragraph II. B. (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 as issued by Standard 
and Poors (S&P) or Aaa, Aa, or A as issued by Moodys.
    (2) For applicants or licensees that do not issue bonds, all of 
the following tests must be met:
    (a) (Total Revenues less total expenditures) divided by total 
revenues must be equal to or greater than .04.
    (b) Long term debt divided by net fixed assets must be less than 
or equal to .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 of the following requirements:
    (1) The licensee's independent certified public accountant must 
have compared the data used by the licensee in the financial test, 
which is required to be derived from the independently audited year 
end financial statements, based on United States generally accepted 
accounting practices, for the latest fiscal year, with the amounts 
in such financial statement. In connection with that procedure, the 
licensee shall inform NRC within 90 days of any matters coming to 
the attention of the auditor that 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 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 alternate 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. 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 
alternate 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 set up and 
fund a trust in the amount of the current cost estimates for 
decommissioning.
    E. 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 Poors or Moodys, the licensee shall provide notice in 
writing of such fact to the Commission within 20 days after 
publication of the change by the rating service.

PART 40--DOMESTIC LICENSING OF SOURCE MATERIAL

    5. 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. 11e(2), 
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).


[[Page 23401]]


    6. In Sec. 40.36 the introductory text of paragraph (e)(2) is 
revised to read as follows:


Sec. 40.36  Financial assurance and recordkeeping for decommissioning.

* * * * *
    (e) * * *
    (2) A surety method, insurance, or other guarantee method. These 
methods guarantee that decommissioning costs will be paid. A surety 
method may be in the form of a surety bond, letter of credit, or line 
of credit. A parent company guarantee of funds for decommissioning 
costs based on a financial test may be used if the guarantee and test 
are as contained in Appendix A to Part 30. A parent company guarantee 
may not be used in combination with other financial methods to satisfy 
the requirements of this section. For commercial corporations that 
issue bonds, a guarantee of funds by the applicant or licensee for 
decommissioning costs based on a financial test may be used if the 
guarantee and test are as contained in Appendix C to Part 30. For 
commercial companies that do not issue bonds, a guarantee of funds by 
the applicant or licensee for decommissioning costs may be used if the 
guarantee and test are as contained in Appendix D to Part 30. For non-
profit entities, such as colleges, universities, and non-profit 
hospitals, a guarantee of funds by the applicant or licensee may be 
used if the guarantee and test are as contained in Appendix E to Part 
30. A guarantee by the applicant or licensee may not be used in 
combination with any other financial methods used to satisfy the 
requirements of this section or in any situation where the applicant or 
licensee has a parent company holding majority control of the voting 
stock of the company. Any surety method or insurance used to provide 
financial assurance for decommissioning must contain the following 
conditions:
* * * * *

PART 50--DOMESTIC LICENSING OF PRODUCTION AND UTILIZATION 
FACILITIES

    7. The authority citation for Part 50 continues to read as follows:

    Authority: Secs. 102, 103, 104, 105, 161, 182, 183, 186, 189, 68 
Stat. 936, 937, 938, 948, 953, 954, 955, 956, as amended, sec. 234, 
83 Stat. 1244, as amended (42 U.S.C. 2132, 2133, 2134, 2135, 2201, 
2232, 2233, 2236, 2239, 2282); secs. 201, as amended, 202, 206, 88 
Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846).
    Section 50.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat. 
2951 (42 U.S.C. 5851). Section 50.10 also issued under secs. 101, 
185, 68 Stat. 936, 955, as amended (42 U.S.C. 2131, 2235); sec. 102, 
Pub. L. 91-190, 83 Stat. 853 (42 U.S.C. 4332). Sections 50.13, 
50.54(dd), and 50.103 also issued under sec. 108, 68 Stat. 939, as 
amended (42 U.S.C. 2138). Sections 50.23, 50.35, 50.55, and 50.56 
also issued under sec. 185, 68 Stat. 955 (42 U.S.C. 2235). Sections 
50.33a, 50.55a and Appendix Q also issued under sec. 102, Pub. L. 
91-190, 83 Stat. 853 (42 U.S.C. 4332). Sections 50.34 and 50.54 also 
issued under sec. 204, 88 Stat. 1245 (42 U.S.C. 5844). Sections 
50.58, 50.91, and 50.92 also issued under Pub. L. 97-415, 96 Stat. 
2073 (42 U.S.C. 2239). Section 50.78 also issued under sec. 122, 68 
Stat. 939 (42 U.S.C. 2152). Sections 50.80-50.81 also issued under 
sec. 184, 68 Stat. 954, as amended (42 U.S.C. 2234). Appendix F also 
issued under sec. 187, 68 Stat. 955 (42 U.S.C 2237).
    8. In Sec. 50.75 the introductory text of paragraph (e)(2)(iii) is 
revised to read as follows:


Sec. 50.75  Reporting and recordkeeping for decommissioning planning.

* * * * *
    (e) * * *
    (2) * * *
    (iii) A surety method, insurance, or other guarantee method. These 
methods guarantee that decommissioning costs will be paid. A surety 
method may be in the form of a surety bond, letter of credit, or line 
of credit. A parent company guarantee of funds for decommissioning 
costs based on a financial test may be used if the guarantee and test 
are as contained in Appendix A to Part 30. A parent company guarantee 
may not be used in combination with other financial methods to satisfy 
the requirements of this section. For commercial corporations that 
issue bonds, a guarantee of funds by the applicant or licensee for 
decommissioning costs based on a financial test may be used if the 
guarantee and test are as contained in Appendix C to Part 30. For 
commercial companies that do not issue bonds, a guarantee of funds by 
the applicant or licensee for decommissioning costs may be used if the 
guarantee and test are as contained in Appendix D to Part 30. For non-
profit entities, such as colleges, universities, and non-profit 
hospitals, a guarantee of funds by the applicant or licensee may be 
used if the guarantee and test are as contained in Appendix E to Part 
30. A guarantee by the applicant or licensee may not be used in 
combination with any other financial methods used to satisfy the 
requirements of this section or in any situation where the applicant or 
licensee has a parent company holding majority control of the voting 
stock of the company. Any surety method or insurance used to provide 
financial assurance for decommissioning must contain the following 
conditions:
* * * * *

PART 70--DOMESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL

    9. 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 USC 
2071, 2073, 2201, 2232, 2233, 2282); secs. 201, as amended, 202, 
204, 206, 88 Stat. 1242, as amended, 1244, 1245, 1246 (42 USC 5841, 
5842, 5845, 5846).
    Sections 70.1(c) and 70.20a(b) also issued under secs. 135, 141, 
Pub. L. 97-425, 96 Stat. 2232, 2241 (42 USC 10155, 10161). Section 
70.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat. 2951 (42 
USC 5851). Section 70.21(g) also issued under sec. 122, 68 Stat. 939 
(42 USC 2152). Section 70.31 also issued under sec. 57d, Pub. L. 93-
377, 88 Stat. 475 (42 USC 2077). Sections 70.36 and 70.44 also 
issued under sec. 184, 68 Stat. 954, as amended (42 USC 2234). 
Section 70.61 also issued under secs. 186, 187, 68 Stat. 955 (42 USC 
2236, 2237). Section 70.62 also issued under sec. 108, 68 Stat. 939, 
as amended (42 USC 2138).

    10. In Sec. 70.25, the introductory text of paragraph (f)(2) is 
revised to read as follows:


Sec. 70.25  Financial assurance and recordkeeping for decommissioning.

* * * * *
    (f) * * *
    (2) A surety method, insurance, or other guarantee method. These 
methods guarantee that decommissioning costs will be paid. A surety 
method may be in the form of a surety bond, letter of credit, or line 
of credit. A parent company guarantee of funds for decommissioning 
costs based on a financial test may be used if the guarantee and test 
are as contained in Appendix A to Part 30. A parent company guarantee 
may not be used in combination with other financial methods to satisfy 
the requirements of this section. For commercial corporations that 
issue bonds, a guarantee of funds by the applicant or licensee for 
decommissioning costs based on a financial test may be used if the 
guarantee and test are as contained in Appendix C to Part 30. For 
commercial companies that do not issue bonds, a guarantee of funds by 
the applicant or licensee for decommissioning costs may be used if the 
guarantee and test are as contained in Appendix D to Part 30. For non-
profit

[[Page 23402]]

entities, such as colleges, universities, and non-profit hospitals, a 
guarantee of funds by the applicant or licensee may be used if the 
guarantee and test are as contained in Appendix E to Part 30. A 
guarantee by the applicant or licensee may not be used in combination 
with any other financial methods used to satisfy the requirements of 
this section or in any situation where the applicant or licensee has a 
parent company holding majority control of the voting stock of the 
company. Any surety method or insurance used to provide financial 
assurance for decommissioning must contain the following conditions:
* * * * *

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

    11. 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 USC 
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 USC 2021); sec. 201, as amended, 202, 206, 88 
Stat. 1242, as amended, 1244, 1246 (42 USC 5841, 5842, 5846); Pub. 
L. 95-601, sec. 10, 92 Stat. 2951 (42 USC 5851); sec. 102, Pub. L. 
91-190, 83 Stat. 853 (42 USC 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 USC 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 USC 10162(b), 
10168(c), (d)). Section 72.46 also issued under sec. 189, 68 Stat. 
955 (42 USC 2239); sec. 134, Pub. L. 97-425, 96 Stat. 2230 (42 USC 
10154). Section 72.96(d) also issued under sec. 145(g), Pub. L. 100-
203, 101 Stat. 1330-235 (42 USC 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 USC 10101, 10137(a), 
10161(h)). Subparts K and L are also issued under sec. 133, 98 Stat. 
2230 (42 USC 10153) and sec. 218(a), 96 Stat. 2252 (42 USC 10198).

    12. In Sec. 72.30 the introductory text of paragraph (c)(2) is 
revised to read as follows:


Sec. 72.30  Decommissioning Planning including financing and 
recordkeeping.

* * * * *
    (c) * * *
    (2) A surety method, insurance, or other guarantee method. These 
methods guarantee that decommissioning costs will be paid. A surety 
method may be in the form of a surety bond, letter of credit, or line 
of credit. A parent company guarantee of funds for decommissioning 
costs based on a financial test may be used if the guarantee and test 
are as contained in Appendix A to Part 30. A parent company guarantee 
may not be used in combination with other financial methods to satisfy 
the requirements of this section. For commercial corporations that 
issue bonds, a guarantee of funds by the applicant or licensee for 
decommissioning costs based on a financial test may be used if the 
guarantee and test are as contained in Appendix C to Part 30. For 
commercial corporations that do not issue bonds, a guarantee of funds 
by the applicant or licensee for decommissioning costs may be used if 
the guarantee and test are as contained in Appendix D to Part 30. A 
guarantee by the applicant or licensee may not be used in combination 
with any other financial methods used to satisfy the requirements of 
this section or in any situation where the applicant or licensee has a 
parent company holding majority control of the voting stock of the 
company. Any surety method or insurance used to provide financial 
assurance for decommissioning must contain the following conditions:
* * * * *
    Dated at Rockville, Maryland, this 24th day of April, 1997.

    For the Nuclear Regulatory Commission.
John C. Hoyle,
Secretary of the Commission.
[FR Doc. 97-11203 Filed 4-29-97; 8:45 am]
BILLING CODE 7590-01-P