[Federal Register Volume 88, Number 1 (Tuesday, January 3, 2023)]
[Proposed Rules]
[Pages 25-34]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27935]


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NUCLEAR REGULATORY COMMISSION

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

[NRC-2017-0021]
RIN 3150-AJ92


Alternatives to the Use of Credit Ratings

AGENCY: Nuclear Regulatory Commission.

ACTION: Proposed rule and draft interim staff guidance; request for 
comment.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is proposing to 
amend its regulations for approved financial assurance mechanisms for 
decommissioning, specifically for parent and self-company guarantees 
that require bond ratings issued by credit rating agencies. This 
proposed rule would implement the provisions of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act of 2010 that directed 
agencies to amend their regulations to remove any reference to or 
requirement of reliance on credit ratings. This proposed rule affects 
applicants and licensees who are required to provide decommissioning 
financial assurance. The NRC invites public comment on this proposed 
rule and associated draft guidance, and will hold a public meeting to 
promote full understanding of the contemplated action and facilitate 
public comment.

DATES: Submit comments by March 20, 2023. Comments received after this 
date will be considered if it is practical to do so, but the NRC is 
able to ensure consideration only for comments received before this 
date.

ADDRESSES: You may submit comments by any of the following methods 
(unless this document describes a different method for submitting 
comments on a specific subject); however, the NRC encourages electronic 
comment submission through the Federal rulemaking website:
     Federal Rulemaking Website: Go to https://www.regulations.gov and search for Docket ID NRC-2017-0021. Address 
questions about NRC Dockets to Dawn Forder; telephone: 301-415-3407; 
email: [email protected]. For technical questions contact the 
individual listed in the FOR FURTHER INFORMATION CONTACT section of 
this document.
     Email comments to: [email protected]. If you do 
not receive an automatic email reply confirming receipt, then contact 
us at 301-415-1677.
     Mail comments to: Secretary, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555-0001, ATTN: Rulemakings and 
Adjudications Staff.
    For additional direction on obtaining information and submitting 
comments, see ``Obtaining Information and Submitting Comments'' in the 
SUPPLEMENTARY INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Gregory Trussell, Office of Nuclear 
Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, 
Washington, DC 20555-0001; telephone: 301-415-6244; email: 
[email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Obtaining Information and Submitting Comments
    A. Obtaining Information
    B. Submitting Comments
II. Background
III. Discussion of Changes
IV. Specific Requests for Comments
V. Discussion of Proposed Amendments by Section
VI. Regulatory Flexibility Certification
VII. Regulatory Analysis
VIII. Backfitting and Issue Finality
IX. Cumulative Effects of Regulation
X. Plain Writing
XI. Environmental Assessment and Final Finding of No Significant 
Environmental Impact
XII. Paperwork Reduction Act Statement
XIII. Compatibility of Agreement State Regulations
XIV. Availability of Guidance
XV. Public Meeting
XVI. Availability of Documents

I. Obtaining Information and Submitting Comments

A. Obtaining Information

    Please refer to Docket ID NRC-2017-0021 when contacting the NRC 
about the availability of information for this action. You may obtain 
publicly-available information related to this action by any of the 
following methods:
     Federal Rulemaking Website: Go to https://www.regulations.gov and search for Docket ID NRC-2017-0021.
     NRC's Agencywide Documents Access and Management System 
(ADAMS): You may obtain publicly-available documents online in the 
ADAMS Public Documents collection at https://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``Begin Web-based ADAMS 
Search.'' For problems with ADAMS, please contact the NRC's Public 
Document Room (PDR) reference staff at 1-800-397-4209, 301-415-4737, or 
by email to [email protected]. For the convenience of the reader, 
instructions about obtaining materials referenced in this document are 
provided in the ``Availability of Documents'' section.
     NRC's PDR: You may examine and purchase copies of public 
documents, by appointment, at the NRC's Public Document Room (PDR), 
Room P1 B35, One White Flint North, 11555 Rockville Pike, Rockville, 
Maryland 20852. To make an appointment to visit the PDR, please send an 
email to [email protected] or call 1-800-397-4209 or 301-415-4737, 
between 8:00 a.m. and 4:00 p.m. eastern time, Monday through Friday, 
except Federal holidays.

B. Submitting Comments

    The NRC encourages electronic comment submission through the 
Federal rulemaking website (https://www.regulations.gov). Please 
include Docket ID NRC-2017-0021 in your comment submission.
    The NRC cautions you not to include identifying or contact 
information that you do not want to be publicly disclosed in your 
comment submission. The NRC will post all comment submissions at 
https://www.regulations.gov as well as enter the comment submissions 
into ADAMS. The NRC does not routinely edit comment submissions to 
remove identifying or contact information.
    If you are requesting or aggregating comments from other persons 
for submission to the NRC, then you should inform those persons not to 
include identifying or contact information that they do not want to be 
publicly disclosed in their comment submission. Your request should 
state that the NRC does not routinely edit comment submissions to 
remove such information before making the comment submissions available 
to the public or entering the comment into ADAMS.

[[Page 26]]

II. Background

    Congress passed the Dodd-Frank Wall Street Reform and Consumer 
Protection Act of 2010 \1\ (The Dodd-Frank Act'' or ``Act'') to 
``promote the financial stability of the United States by improving 
accountability and transparency in the financial system.'' \2\ In the 
Act, Congress finds that ``ratings on structured financial products 
have proven to be inaccurate'' and that ``[t]his inaccuracy contributed 
significantly to the mismanagement of risks by financial institutions 
and investors, which in turn adversely impacted the health of the 
economy.'' \3\ Section 939A of the Act directs Federal agencies to 
review regulations that require the use of an assessment of the 
creditworthiness of a security or money market instrument and modify 
any regulations identified by the review to remove ``any reference to 
or requirement of reliance on credit ratings and to substitute in such 
regulations such standard of [creditworthiness] as each respective 
agency shall determine as appropriate for such regulations.'' \4\
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    \1\ Public Law 111-203.
    \2\ Public Law 111-203, Preamble.
    \3\ Public Law 111-203, Sec. 931(5).
    \4\ Public Law 111-203, Sec. 939A(b).
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    As directed by section 939A of the Dodd-Frank Act, the NRC reviewed 
its regulations for any references to, or requirements regarding, 
credit ratings. Appendices A, C, and E to part 30 of title 10 of the 
Code of Federal Regulations (10 CFR), ``Rules of General Applicability 
to Domestic Licensing of Byproduct Material,'' require specified bond 
ratings from Moody's or Standard and Poor's to satisfy certain 
decommissioning financial assurance requirements for materials, power 
reactor, and non-power reactor applicants and licensees. In accordance 
with the Dodd-Frank Act, the NRC is proposing to amend these appendices 
by removing these requirements and relying instead on newly established 
criterion for creditworthiness that demonstrates an adequate capacity 
to provide full and timely payment of the amount guaranteed. Other 
regulations that cite or reference these appendices also would be 
affected by this proposed rule, including Sec. Sec.  30.35(f)(2), 
40.36(e)(2), 50.75(e)(1)(iii)(c), 70.25(f)(2), and 72.30(e)(2).
    The NRC published an advance notice of proposed rulemaking (ANPR) 
in the Federal Register on December 21, 2020 (85 FR 82950). The ANPR 
identified alternative approaches for assessing a licensee's 
creditworthiness and requested comment on alternative approaches. The 
NRC held a public meeting on February 8, 2021, to facilitate comments 
on the ANPR. The NRC received six comments. Of those six comments, four 
were in scope and supportive of the NRC's approach described in the 
ANPR, one was partially in scope and not in support, and one was out of 
scope. The NRC analyzed the comments and considered them in the 
development of this proposed rule (NRC-2017-0021).

III. Discussion of Changes

    Applicants and licensees must demonstrate reasonable assurance that 
funds will be available when needed for decommissioning in order to 
obtain and maintain a reactor license and certain materials 
licenses.\5\ Under the current regulations, this demonstration may be 
made by prepayment of funds or by payment of funds into an external 
sinking fund, a surety method, insurance, or other guarantee method, 
including a letter of credit, a parent company guarantee, or a self-
guarantee.\6\ For each licensee or applicant from whom the NRC accepts 
a parent company guarantee or self-guarantee to provide financial 
assurance, there exist two alternative financial tests: one test for an 
entity that issues bonds and has a bond rating issued by a credit 
rating agency, and a second test for an entity without bond ratings.
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    \5\ Section 182.a. of the Atomic Energy Act of 1954, as amended, 
provides that ``Each application for a license . . . shall 
specifically state such information as the Commission, by rule or 
regulation, may determine to be necessary to decide such of the 
technical and financial qualifications of the applicant . . . as the 
Commission may deem appropriate for the license.''
    \6\ Sections 30.35(f), 40.36(e), 50.75(e), 70.25(f), and 
72.30(e).
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    For each entity (a company, a parent company, or a non-profit 
college, university, or hospital) from whom the NRC accepts a parent 
company guarantee or self-guarantee to provide decommissioning funding 
financial assurance, financial tests exist in appendices A, C, D, and E 
to 10 CFR part 30.
    A parent company guarantee must be provided by the parent company 
of the licensee. Under the current regulations, the parent company must 
meet one of the two financial tests specified in appendix A to 10 CFR 
part 30. These two financial tests, as discussed in the following 
paragraphs, differ in that one includes a bond rating criterion while 
the other does not.
    For financial test one, the parent company must have the following: 
(1) two of the following three ratios: a ratio of total liabilities to 
total net worth less than 2.0; a ratio of the sum of net income plus 
depreciation, depletion, and amortization to total liabilities greater 
than 0.1; and a ratio of current assets to current liabilities greater 
than 1.5; (2) net working capital and tangible net worth, each at least 
six times the amount of decommissioning funds being assured by the 
parent company guarantee for the total of all nuclear facilities or 
parts thereof (or prescribed amount, if certification is used); (3) 
tangible net worth of at least $21 million; and (4) assets located in 
the United States amounting to at least 90 percent of total assets or 
at least six times the current decommissioning cost estimates (or 
prescribed amount, if applicable).
    For financial test two, the parent company must have the following: 
(1) a current rating for its most recent uninsured, uncollateralized, 
and unencumbered bond issuance of AAA, AA, A, or BBB, as issued by 
Standard & Poor's, or Aaa, Aa, A, or Baa, as issued by Moody's; (2) 
total net worth at least six times the amount of decommissioning funds 
being assured by a parent company guarantee for the total of all 
nuclear facilities or parts thereof (or prescribed amount, if 
certification is used); (3) tangible net worth of at least $21 million; 
and (4) assets located in the United States amounting to at least 90 
percent of total assets or at least six times the current 
decommissioning cost.
    A self-guarantee is a guarantee provided by the licensee. Under 
current regulations, the licensee must meet the financial tests 
specified in appendices C, D, and E to 10 CFR part 30. The financial 
test alternatives consider accounting ratios, net worth, assets, 
operating revenues, and bond rating data relative to fixed criteria. 
The licensee's financial statements must have been prepared in 
accordance with generally accepted accounting principles applicable to 
the United States, and an independent certified public accountant must 
have verified the accuracy of the financial test data relative to the 
audited financial statements. A self-guarantee may not be used in 
combination with other financial assurance mechanisms, except a sinking 
fund, and may not be used in cases in which a licensee has a parent 
company holding majority control of its voting stock.

[[Page 27]]

    The NRC's regulations for self-guarantees apply to three general 
categories of licensees: (1) commercial companies that issue bonds. 
Self-guarantees by these licensees are regulated under appendix C, 
``Criteria Relating to Use of Financial Tests and Self-Guarantees for 
Providing Reasonable Assurance of Funds for Decommissioning,'' to 10 
CFR part 30; (2) commercial companies that do not issue bonds. Self-
guarantees by these licensees are regulated under appendix D, 
``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,'' to 10 CFR 
part 30; and (3) nonprofit colleges, universities, and hospitals. Self-
guarantees by these licensees are regulated under appendix E, 
``Criteria Relating to Use of Financial Tests and Self-Guarantee for 
Providing Reasonable Assurance of Funds for Decommissioning by 
Nonprofit Colleges, Universities, and Hospitals,'' to 10 CFR part 30.
    Under the current regulations specified in appendix C to 10 CFR 
part 30, the financial test for commercial companies that issue bonds 
is that the licensee must have the following: (1) tangible net worth 
calculated to exclude the net book value of the nuclear facility and 
site and any intangible assets of at least $21 million and total net 
worth at least 10 times the amount of decommissioning funds being 
assured (or prescribed amount if a certification is used) for all 
decommissioning activities for which the company is responsible as a 
self-guaranteeing licensee; (2) assets located in the United States 
amounting to at least 90 percent of total assets or at least 10 times 
the current decommissioning cost estimates (or prescribed amount if a 
certification is used) for all decommissioning activities for which the 
company is responsible as a self-guaranteeing licensee; and (3) a 
current rating for its most recent uninsured, uncollateralized, and 
unencumbered bond issuance of AAA, AA, or A, as issued by Standard & 
Poor's, or Aaa, Aa, or A, as issued by Moody's.
    Under the current regulations specified in appendix D to 10 CFR 
part 30, the financial test for commercial companies that do not issue 
bonds is that the licensee must have the following: (1) tangible net 
worth of at least $21 million and total net worth of at least 10 times 
the amount of decommissioning funds being assured (or prescribed amount 
if a certification is used) for all decommissioning activities for 
which the company is responsible as a self-guaranteeing licensee (or 
the current amount required if certification is used); (2) assets 
located in the United States amounting to at least 90 percent of total 
assets or at least 10 times the amount of funds being assured (or 
prescribed amount if a certification is used) for all decommissioning 
activities for which the company is responsible as a self-guaranteeing 
licensee for the total of all nuclear facilities or parts thereof (or 
the current amount required if certification is used); and (3) ratio of 
cash flow divided by total liabilities greater than 0.15 and a ratio of 
total liabilities divided by total net worth less than 1.5.
    Under the current regulations specified in appendix E to 10 CFR 
part 30, the financial test for nonprofit colleges and universities 
that issue bonds is that the licensee must have a current rating for 
its most recent uninsured, uncollateralized, and unencumbered bond 
issuance of AAA, AA, or A, as issued by Standard & Poor's, or Aaa, Aa, 
or A, as issued by Moody's.
    The financial test for nonprofit colleges and universities that do 
not issue bonds is that the licensee must have unrestricted endowment 
consisting of assets located in the United States of at least $50 
million or at least 30 times the current decommissioning cost estimates 
(or prescribed amount if a certification is used), whichever is 
greater, for all decommissioning activities for which the college or 
university is responsible as a self-guaranteeing licensee for the total 
of all nuclear facilities or parts thereof (or the current amount 
required if certification is used).
    Under the current regulations, the financial test for nonprofit 
hospitals that issue bonds is that the licensee must have a current 
rating for its most recent uninsured, uncollateralized, and 
unencumbered bond issuance of AAA, AA, or A, as issued by Standard & 
Poor's, or Aaa, Aa, or A, as issued by Moody's.
    The financial test for nonprofit hospitals that do not issue bonds 
is that the licensee must have the following: (1) total revenues less 
total expenditures divided by total revenues must be equal to or 
greater than 0.04; (2) long-term debt divided by net fixed assets must 
be less than or equal to 0.67; (3) (current assets and depreciation 
fund) divided by current liabilities must be greater than or equal to 
2.55; and (4) 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.
    This proposed rule would remove from NRC regulations those 
financial tests that rely, in part, on credit ratings and substitute 
newly established standards of creditworthiness. The NRC would perform 
an independent review to evaluate a licensee's creditworthiness. The 
NRC would seek to determine the licensee's risk of default based on the 
NRC's review of financial data. This review could include evaluation of 
financial data available from the licensee, open sources, and third 
parties, and may include credit ratings.
    Specifically, this proposed rule would--
    (1) For use of parent company guarantees, revise paragraphs 
II.A.2(i) and B of appendix A to 10 CFR part 30 to remove bond rating 
requirements and rely instead on a new criterion: creditworthiness that 
demonstrates an adequate capacity to provide full and timely payment of 
the amount guaranteed.
    (2) For use of self-guarantees for commercial companies, revise 
paragraphs II.A.3 and B.2 of appendix C to 10 CFR part 30 to remove 
bond rating requirements and rely instead on new creditworthiness 
criteria that demonstrates an adequate capacity to provide full and 
timely payment of the amount guaranteed.
    (3) For use of self-guarantees for nonprofit colleges, 
universities, and hospitals, revise paragraphs II.A.(1) and B of 
appendix E to 10 CFR part 30 to remove bond rating requirements and 
rely instead on new creditworthiness criteria that demonstrates an 
adequate capacity to provide full and timely payment of the amount 
guaranteed.
    (4) Change the title of appendix D to 10 CFR part 30 to read 
``Alternative Criteria Relating to Use of Financial Tests and Self-
Guarantee for Providing Reasonable Assurance of Funds for 
Decommissioning by Commercial Companies.'' The title change removes the 
term, ``That Have no Outstanding Rated Bonds'' and provides for 
alternative criteria to appendix C for commercial companies.
    (5) Revise the reporting requirement in paragraph III.E.(1) of 
appendix C to 10 CFR part 30 from 20 to 90 days, that at any time the 
licensee becomes aware of information that is material to its capacity 
to provide full and timely payment of the amount guaranteed, the 
licensee will notify the Commission in writing. The 20-day reporting 
requirement was based on bond ratings, which would be removed as a 
result of the proposed rule, and the 90-day

[[Page 28]]

requirement conforms to existing reporting requirements in Appendices A 
and D to 10 CFR part 30.
    (6) Revise the reporting requirement in paragraph III.E.(1) of 
appendix E to 10 CFR part 30 from 20 to 90 days, that at any time the 
licensee becomes aware of information that is material to its capacity 
to provide full and timely payment of the amount guaranteed, the 
licensee will notify the Commission in writing. The 20-day reporting 
requirement was based on bond ratings, which would be removed as a 
result of the proposed rule, and the 90-day requirement conforms to 
existing reporting requirements in Appendices A and D to 10 CFR part 
30.

IV. Specific Requests for Comments

    The NRC is seeking advice and recommendations from the public on 
this proposed rule. We are particularly interested in comments and 
supporting rationale from the public on the following:
    (1) Would this proposed rule present additional risk to the public 
regarding reasonable assurance that NRC licensees have adequate funding 
to decommission their facilities? If yes, please explain.
    (2) Does the draft guidance effectively communicate the necessary 
information to be submitted to the NRC that will enable the NRC to 
effectively determine a licensee's creditworthiness?
    (3) Does the draft regulatory analysis capture all of the NRC and 
licensee costs required by this proposed rule?
    (4) One commenter on the ANPR argues that section 939A of the Dodd-
Frank Act is focused on ``issue'' credit ratings of specific financial 
obligations, such as long- and short-term bonds, rather than ``issuer'' 
credit ratings or corporate family ratings, and that the statute does 
not preclude the use of ``issuer'' or corporate family credit ratings 
in Federal regulations. Should the NRC interpret the statute and 
implementing regulations as making this distinction? Does the statute 
permit NRC to use ``issuer'' or corporate family credit ratings in part 
30? If so, should the NRC do so?
    Commenters are encouraged to provide specific suggestions and the 
basis for those suggestions.

V. Discussion of Proposed Amendments by Section

    The following paragraphs describe the specific changes proposed by 
this rulemaking.

Section 30.35 Financial Assurance and Recordkeeping for Decommissioning

    The NRC is proposing to revise the fourth sentence of paragraph 
(f)(2) introductory text to reference appendix C or D to 10 CFR part 
30, and remove the sentence concerning commercial companies that do not 
issue bonds.

Appendix A to 10 CFR Part 30--Criteria Relating to Use of Financial 
Tests and Parent Company Guarantees for Providing Reasonable Assurance 
of Funds for Decommissioning

    The NRC is proposing to amend appendix A to 10 CFR part 30 by 
revising paragraphs II.A.2(i) and B by removing the bond rating 
criteria and replacing it with a new creditworthiness requirement.

Appendix C to 10 CFR Part 30--Criteria Relating to Use of Financial 
Tests and Self Guarantees for Providing Reasonable Assurance of Funds 
for Decommissioning

    The NRC is proposing to amend appendix C to 10 CFR part 30 by 
revising paragraphs II.A.3 and B.2 and III.E to replace the bond rating 
criteria with a new creditworthiness requirement. In addition, the NRC 
is proposing to further revise paragraph III.E to change the written 
notification requirement from 20 days to 90 days and to make conforming 
changes.

Appendix D to 10 CFR 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

    The NRC is proposing to revise the title of appendix D to 10 CFR 
part 30 to read ``Alternative Criteria Relating to Use of Financial 
Tests and Self-Guarantee for Providing Reasonable Assurance of Funds 
for Decommissioning by Commercial Companies.'' The title change removes 
the term, ``That Have no Outstanding Rated Bonds'' and provides for 
alternative criteria to appendix C for commercial companies.

Appendix E to 10 CFR Part 30--Criteria Relating to Use of Financial 
Tests and Self-Guarantee for Providing Reasonable Assurance of Funds 
for Decommissioning by Nonprofit Colleges, Universities, and Hospitals

    The NRC is proposing to reorder and revise paragraphs II.A.(1) and 
(2) and II.B.(1) and (2), and revise paragraphs II.C.(1) and III.E to 
replace the bond rating criteria with a new creditworthiness 
requirement. In addition, the NRC is proposing to further revise 
paragraph III.E to change the written notification requirement from 20 
days to 90 days and to make conforming changes.

Section 40.36 Financial Assurance and Recordkeeping for Decommissioning

    The NRC is proposing to revise the fourth sentence of paragraph 
(e)(2) introductory text to reference appendix C or D to 10 CFR part 
30, and remove the sentence concerning commercial companies that do not 
issue bonds.

Section 50.75 Reporting and Recordkeeping for Decommissioning

    The NRC is proposing to revise the first sentence of paragraph 
(e)(1)(iii)(C) to reference appendix C or D to 10 CFR part 30, and 
remove from the paragraph the sentence concerning commercial companies 
that do not issue bonds.

Section 70.25 Financial Assurance and Recordkeeping for Decommissioning

    The NRC is proposing to revise the fourth sentence of paragraph 
(f)(2) introductory text to reference appendix C or D to 10 CFR part 
30.

Section 72.30 Financial Assurance and Recordkeeping for Decommissioning

    The NRC is proposing to revise the fourth sentence of paragraph 
(e)(2) introductory text to reference appendix C or D to 10 CFR part 
30, and remove the sentence concerning commercial companies that do not 
issue bonds.

VI. Regulatory Flexibility Certification

    As required by the Regulatory Flexibility Act of 1980, 5 U.S.C. 
605(b), the Commission certifies that this proposed rule, if adopted, 
would not have a significant economic impact on a substantial number of 
small entities. This proposed rule would not affect any ``small 
entities'' as defined by the Regulatory Flexibility Act or the size 
standards established by the NRC (Sec.  2.810).

VII. Regulatory Analysis

    The NRC has prepared a regulatory analysis on this regulation. The 
analysis examines the costs and benefits of the alternatives considered 
by the NRC. The conclusion from the analysis is that this proposed rule 
and associated guidance would result in a cost to the industry (NRC-
licensees) and the NRC of $1,150,000 using a 7-percent discount rate 
and $1,340,000 using a 3-percent discount rate. Though the regulatory

[[Page 29]]

analysis indicates the proposed rule is not cost-beneficial, the NRC 
plans to proceed with the proposed rule because it is required by 
statute. The changes in the proposed rule were chosen as the most cost-
effective method for complying with the statute. The NRC requests 
public comment on the draft regulatory analysis. The regulatory 
analysis is available in ADAMS.

VIII. Backfitting and Issue Finality

    The NRC has not prepared a backfit analysis for this proposed rule 
because the proposed requirements are mandated by Congress and, 
therefore, exempt from the NRC's provisions in Sec. Sec.  50.109, 
70.76, 72.62, 76.76, and issue finality regulations in 10 CFR part 52.

IX. Cumulative Effects of Regulation

    The NRC is following its Cumulative Effects of Regulation (CER) 
process by engaging with external stakeholders throughout this proposed 
rule and related regulatory activities. Public involvement has included 
public meetings and opportunity to respond to NRC's Advance Notice of 
Proposed Rulemaking.
    The NRC held a public meeting on October 30, 2019, where the NRC 
presented an analysis of the Dodd-Frank Act and its impact on the NRC 
regulations. The NRC's initial rulemaking approach would have removed 
the provisions in appendices A, C, and E to 10 CFR part 30 that relied 
on bond/credit rating and instead relied exclusively on existing 
financial ratio metrics. Industry participants shared a view that the 
NRC's initial rulemaking approach would have a substantial negative 
impact on the availability of parent company guarantees and self-
guarantees (Summary of Public Meeting to Discuss the Alternatives to 
the Use of Credit Ratings Proposed Rule, October 30, 2019).\7\. 
Participants recommended that the NRC examine approaches taken by other 
Federal agencies for implementing the Dodd-Frank Act requirements, 
which could help identify alternative approaches for assessing a 
licensee's creditworthiness for purposes of determining a licensee's 
ability to rely on a guarantee mechanism for decommissioning. In 
evaluating potential approaches, the NRC determined that it would be 
beneficial to solicit additional stakeholders' views on the approaches 
when developing this proposed rule.
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    \7\ This document is one of the documents available as part the 
package identified as ``Alternatives to the Use of Credit Ratings 
October 30, 2019, Public Meeting, dated October 30, 2019'' in the 
``Availability of Documents'' section of this rulemaking.
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    The NRC published an ANPR in the Federal Register on December 21, 
2020 (85 FR 82950). The NRC held a second public meeting on February 8, 
2021, to help facilitate comments for the ANPR. The ANPR identified 
alternative approaches for assessing a licensee's creditworthiness and 
requested comment on the alternative approaches.
    Another opportunity for public comment is provided to the public at 
this proposed rule stage. The NRC is issuing draft implementing 
guidance for comment with this proposed rule to support more informed 
external stakeholder feedback. Further, the NRC will conduct another 
public meeting during the comment period for this proposed rule.
    The effective date of the final rule would be 60-days from 
publication. Licensees or applicants seeking to initiate use of a 
guarantee mechanism after the effective date would submit information 
that demonstrates creditworthiness consistent with the final rule. 
Licensees currently using a guarantee mechanism would submit 
information that demonstrates creditworthiness consistent with the 
final rule when each licensee submits its annual documentation required 
to maintain its eligibility to use a guarantee mechanism.
    The NRC is requesting CER feedback on the following questions:
    1. In light of any current or projected CER challenges, does this 
proposed rule's effective date provide sufficient time to implement the 
proposed requirements, including changes to programs and procedures?
    2. If CER challenges currently exist or are expected, what should 
be done to address them? For example, if more time is required for 
implementation of the new requirements, what period of time is 
sufficient?
    3. Do other (NRC or other agency) regulatory actions (e.g., orders, 
generic communications, license amendment requests inspection findings 
of a generic nature) influence the implementation of this proposed 
rule's requirements?
    4. Are there unintended consequences? Does this proposed rule 
create conditions that would be contrary to its purpose and objectives? 
If so, what are the unintended consequences, and how should they be 
addressed?
    5. Please comment on the NRC's cost and benefit estimates in the 
draft regulatory analysis that supports this proposed rule.

X. Plain Writing

    The Plain Writing Act of 2010 (Pub. L. 111-274) requires Federal 
agencies to write documents in a clear, concise, and well-organized 
manner. The NRC has written this document to be consistent with the 
Plain Writing Act as well as the Presidential Memorandum, ``Plain 
Language in Government Writing,'' published June 10, 1998 (63 FR 
31885). The NRC requests comment on this document with respect to the 
clarity and effectiveness of the language used.

XI. Environmental Assessment and Final Finding of No Significant 
Environmental Impact

    The proposed action is the amendment of the NRC regulations, 
appendices A, C, D, and E to 10 CFR part 30, which concern the NRC's 
criteria relating to the use of financial tests and self- and parent-
company guarantees for providing reasonable assurance of funds for 
decommissioning. In accordance with the Dodd-Frank Act, the NRC is 
proposing to amend these appendices to remove the requirements that 
rely on bond ratings and rely instead on newly established criteria for 
creditworthiness.
    The newly established criteria for creditworthiness would not lead 
to any increase in the effect on the environment of decommissioning 
activities.
    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, if 
adopted, would not be a major Federal action significantly affecting 
the quality of the human environment and, as a result, an environmental 
impact statement is not required. No other agencies or persons were 
contacted in making this determination. The NRC 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.

XII. Paperwork Reduction Act Statement

    This proposed rule contains a new or amended collection of 
information subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq). This proposed rule has been submitted to the Office of 
Management and Budget for review and approval of the information 
collection(s).
    Type of submission: Revision.

[[Page 30]]

    The title of the information collection: Alternatives to the Use of 
Credit Ratings.
    How often the collection is required or requested: Annually.
    Who will be required or asked to respond: Applicants and licensees 
who relied on bond ratings of their financial instrument for financial 
assurance will now have to submit information to demonstrate that an 
alternative financial test is met.
    An estimate of the number of annual responses:

Part 30: 6
Part 40: 3
Part 50: 5
Part 70: 7
    The estimated number of annual respondents:

Part 30: 6
Part 40: 3
Part 50: 5
Part 70: 7
    An estimate of the total number of hours needed annually to comply 
with the information collection requirement or request:

Part 30: 646
Part 40: 323
Part 50: 538
Part 70: 754
    Abstract: The NRC is proposing to amend its regulations for 
approved financial assurance mechanisms for decommissioning, 
specifically for parent and self-company guarantees that require bond 
ratings issued by credit rating agencies. This proposed rule would 
implement the provisions of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act of 2010 that directed agencies to amend their 
regulations to remove any reference to or requirement of reliance on 
credit ratings. This proposed rule affects applicants and licensees who 
are required to provide decommissioning financial assurance.
    The NRC is seeking public comment on the potential impact of the 
information collection(s) contained in this proposed rule and on the 
following issues:
    1. Is the proposed information collection 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 of the proposed information 
collection accurate?
    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 proposed information collection on 
respondents be minimized, including the use of automated collection 
techniques or other forms of information technology?
    A copy of the Office of Management and Budget (OMB) clearance 
package and proposed rule are available in ADAMS under Accession No. 
ML21306A357 or can be obtained free of charge by contacting the NRC's 
Public Document Room reference staff at 1-800-397-4209, at 301-415-
4737, or by email to [email protected]. You may obtain information 
and comment submissions related to the OMB clearance package by 
searching on https://www.regulations.gov under Docket ID NRC-2017-0021.
    You may submit comments on any aspect of these proposed information 
collection(s), including suggestions for reducing the burden and on the 
above issues, by the following methods:
     Federal Rulemaking Website: Go to https://www.regulations.gov and search for Docket ID NRC-2017-0021.
     Mail comments to: FOIA, Library, and Information 
Collections Branch, Office of the Chief Information Officer, Mail Stop: 
T6-A10M, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001 
or to the OMB reviewer at: OMB Office of Information and Regulatory 
Affairs (3150-0017, 3150-0020, 3150-0011, 3150-0009), Attn: Desk 
Officer for the Nuclear Regulatory Commission, 725 17th Street NW, 
Washington, DC 20503; email: [email protected].
    Submit comments by February 2, 2023. Comments received after this 
date will be considered if it is practical to do so, but the NRC is 
able to ensure consideration only for comments received on or before 
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 the document requesting 
or requiring the collection displays a currently valid OMB control 
number.

XII. Compatibility of Agreement State Regulations

    Under the ``Agreement State Program Policy Statement'' approved by 
the Commission on October 2, 2017, and published in the Federal 
Register on October 18, 2017 (82 FR 48535), NRC program elements 
(including regulations) required for adequacy and having a particular 
health and safety component are those designated as Categories A, B, C, 
D, NRC, or Health and Safety (H&S). Compatibility Category A are those 
program elements that are basic radiation protection standards and 
scientific terms and definitions that are necessary to understand 
radiation protection concepts. An Agreement State should adopt Category 
A program elements in an essentially identical manner in order to 
provide uniformity in the regulation of agreement material on a 
nationwide basis. Compatibility Category B are those program elements 
that apply to activities that have direct and significant effects in 
multiple jurisdictions. An Agreement State should adopt Category B 
program elements in an essentially identical manner. Compatibility 
Category C are those program elements that do not meet the criteria of 
Category A or B, but the essential objectives of which an Agreement 
State should adopt to avoid conflict, duplication, gaps, or other 
conditions that would jeopardize an orderly pattern in the regulation 
of agreement material on a national basis. An Agreement State should 
adopt the essential objectives of the Category C program elements. 
Compatibility Category D are those program elements that do not meet 
any of the criteria of Category A, B, or C, above, and thus, do not 
need to be adopted by Agreement States for purposes of compatibility. 
Compatibility Category NRC are those program elements that address 
areas of regulation that cannot be relinquished to the Agreement States 
under the Atomic Energy Act of 1954, as amended, or provisions of 10 
CFR. These program elements should not be adopted by the Agreement 
States. Compatibility Category H&S are program elements that are 
required because of a particular health and safety role in the 
regulation of agreement material within the State and should be adopted 
in a manner that embodies the essential objectives of the NRC program. 
The NRC is not proposing to change the existing compatibility category 
designations. The compatibility category designations are listed in the 
following table:

[[Page 31]]



                                    Compatibility Table for the Proposed Rule
----------------------------------------------------------------------------------------------------------------
                                                                                          Compatibility
              Section                      Change                Subject       ---------------------------------
                                                                                    Existing           New
----------------------------------------------------------------------------------------------------------------
30.35(f)(2).......................  Amend...............  Methods for           D                D
                                                           financial assurance.
Part 30 Appendix A................  Amend...............  Parent company        D                D
                                                           guarantee.
Part 30 Appendix C................  Amend...............  Self-guarantee with   D                D
                                                           bonds.
Part 30 Appendix D................  Amend & Redesignate.  Company self-         D                D
                                                           guarantee.
Part 30 Appendix E................  Amend & Redesignate.  Self-guarantee        D                D
                                                           nonprofits.
40.36(e)(2).......................  Amend...............  Methods for           D                D
                                                           financial assurance.
50.75(e)(1).......................  Amend...............  Surety as bond or     NRC              NRC
                                                           letter of credit.
70.25(f)(2).......................  Amend...............  Methods for           D                D
                                                           financial assurance.
72.30(e)(2).......................  Amend...............  Methods for           NRC              NRC
                                                           financial assurance.
----------------------------------------------------------------------------------------------------------------

    The NRC invites comment on the compatibility category designations 
in this proposed rule and suggests that commenters refer to Handbook 
5.9 of Management Directive 5.9, ``Adequacy and Compatibility of 
Program Elements for Agreement State Programs,'' for more information. 
The NRC encourages anyone interested in commenting on the compatibility 
category designations in any manner to do so during the comment period.

XIV. Availability of Guidance

    The NRC is issuing for comment ``Draft Interim Staff Guidance on 
Removal of Bond Ratings from Parent and Self-Guarantees, 
Decommissioning Financial Assurance,'' to support implementation of the 
requirements in this proposed rule. The guidance document is available 
in ADAMS. You may obtain information and comment submissions related to 
the draft guidance by searching on https://www.regulations.gov under 
Docket ID NRC-2017-0021.
    You may submit comments on the draft regulatory guidance by the 
methods outlined in the ADDRESSES section of this document.

XV. Public Meeting

    The NRC will conduct a public meeting on this proposed rule for the 
purpose of facilitating the submittal of comments and answering 
questions from the public on the proposed requirements.
    The NRC will announce the location, time, and agenda of the meeting 
on the NRC's public meeting web page at least 10 calendar days before 
the meeting. Stakeholders should monitor the NRC's public meeting 
website for information about the public meeting at: https://www.nrc.gov/public-involve/public-meetings/index.cfm. A copy of the 
meeting notice will be posted to docket NRC-2017-0021 on 
www.Regulations.gov.

XVI. Availability of Documents

    The documents identified in the following table are available to 
interested persons through one or more of the following methods, as 
indicated.

----------------------------------------------------------------------------------------------------------------
                          Document                              ADAMS accession No./ Federal Register citation
----------------------------------------------------------------------------------------------------------------
Alternatives to the Use of Credit Ratings October 30, 2019,  ML19276F011 (package).
 Public Meeting, dated October 30, 2019.
Advance Notice of Proposed Rulemaking, ``Alternatives to     85 FR 82950.
 the Use of Credit Ratings,'' dated December 21, 2020.
Alternatives to the Use of Credit Ratings (Frank-Dodd Act)   ML21028A334 (package).
 Advance Notice of Proposed Rulemaking February 8, 2021,
 Public Meeting, dated February 12, 2021.
Draft Interim Staff Guidance on Removal of Bond Ratings      ML21306A361.
 from Parent and Self-Guarantees, Decommissioning Financial
 Assurance, dated April 28, 2022.
Regulatory Analysis for Proposed Rule: Alternatives to the   ML22354A032.
 Use of Credit Ratings, dated December, 2022.
OMB Clearance Package, dated April 28, 2022................  ML21306A357 (package).
----------------------------------------------------------------------------------------------------------------

List of Subjects

10 CFR Part 30

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

10 CFR Part 40

    Criminal penalties, Exports, Government contracts, Hazardous 
materials transportation, Hazardous waste, Nuclear energy, Nuclear 
materials, Penalties, Reporting and recordkeeping requirements, Source 
material, Uranium, Whistleblowing.

10 CFR Part 50

    Administrative practice and procedure, Antitrust, Backfitting, 
Classified information, Criminal penalties, Education, Emergency 
planning, Fire prevention, Fire protection, Intergovernmental 
relations, Nuclear power plants and reactors, Penalties, Radiation 
protection, Reactor siting criteria, Reporting and recordkeeping 
requirements, Whistleblowing.

10 CFR Part 70

    Classified information, Criminal penalties, Emergency medical 
services, Hazardous materials transportation, Material control and 
accounting, Nuclear energy, Nuclear materials, Packaging and 
containers, Penalties, Radiation protection, Reporting and 
recordkeeping requirements, Scientific equipment, Security measures, 
Special nuclear material, Whistleblowing.

10 CFR Part 72

    Administrative practice and procedure, Hazardous waste, Indians, 
Intergovernmental relations, Nuclear energy, Penalties, Radiation 
protection, Reporting and recordkeeping requirements, Security 
measures, Spent fuel, Whistleblowing.

    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,

[[Page 32]]

as amended; and 5 U.S.C. 552 and 553, the NRC is proposing to amend 10 
CFR parts 30, 40, 50, 70, and 72 as follows:

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

0
1. The authority citation for part 30 continues to read as follows:

    Authority:  Atomic Energy Act of 1954, secs. 11, 81, 161, 181, 
182, 183, 184, 186, 187, 223, 234, 274 (42 U.S.C. 2014, 2111, 2201, 
2231, 2232, 2233, 2234, 2236, 2237, 2273, 2282, 2021); Energy 
Reorganization Act of 1974, secs. 201, 202, 206, 211 (42 U.S.C. 
5841, 5842, 5846, 5851); 44 U.S.C. 3504 note.

0
2. In Sec.  30.35, revise paragraph (f)(2) introductory text 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 or letter 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 of this part. For commercial companies, 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 or D of this part. For nonprofit entities, such as 
colleges, universities, and nonprofit hospitals, a guarantee of funds 
by the applicant or licensee may be used if the guarantee and test are 
as contained in appendix E of this part. Except for an external sinking 
fund, a parent company guarantee or 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. A guarantee 
by the applicant or licensee may not be used 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:
* * * * *
0
3. In appendix A to part 30, revise sections II.A.2(i) and B to read as 
follows:

Appendix A to Part 30--Criteria Relating to Use of Financial Tests and 
Parent Company Guarantees for Providing Reasonable Assurance of Funds 
for Decommissioning

* * * * *

II. * * *

A. * * *

2. * * *

    (i) Creditworthiness that demonstrates an adequate capacity to 
provide full and timely payment of the amount guaranteed, if 
necessary; and
* * * * *
    B. The parent company's independent certified public accountant 
must compare the data used by the parent company in the financial 
test, which is derived from the independently audited, year-end 
financial statements for the latest fiscal year, with the amounts in 
such financial statement. The accountant must evaluate the parent 
company's off-balance sheet transactions and provide an opinion on 
whether those transactions could materially adversely affect the 
parent company's ability to pay for decommissioning costs. The 
accountant must verify that the information provided to demonstrate 
passage of the financial test meets the requirements of paragraph A 
of this section. In connection with the auditing procedure, the 
licensee must inform the NRC within 90 days of any matters coming to 
the auditor's attention which cause the auditor to believe that the 
data specified in the financial test should be adjusted and that the 
company no longer passes the test.
* * * * *
0
4. In appendix C to part 30, revise paragraphs II.A.3, II.B.2 and III.E 
to read as follows:

Appendix C to Part 30--Criteria Relating to Use of Financial Tests and 
Self Guarantees for Providing Reasonable Assurance of Funds for 
Decommissioning

* * * * *

II. * * *

A. * * *

    (3) Creditworthiness that demonstrates an adequate capacity to 
provide full and timely payment of the amount guaranteed, if 
necessary.

B. * * *

    (2) The company's independent certified public accountant must 
compare the data used by the company in the financial test, which is 
derived from the independently audited, year-end financial 
statements for the latest fiscal year, with the amounts in such 
financial statement. The accountant must evaluate the company's off-
balance sheet transactions and provide an opinion on whether those 
transactions could materially adversely affect the company's ability 
to pay for decommissioning costs. The accountant must verify that 
the information provided to demonstrate passage of the financial 
test meets the requirements of paragraph A of this section. In 
connection with the auditing procedure, the licensee must inform the 
NRC within 90 days of any matters coming to the auditor's attention 
which cause the auditor to believe that the data specified in the 
financial test should be adjusted and that the company no longer 
passes the test.
* * * * *

III. * * *

    E. (1) If, at any time, the licensee becomes aware of 
information that is material to its capacity to provide full and 
timely payment of the amount guaranteed, the licensee will notify 
the Commission in writing within 90 days.
    (2) If the licensee no longer has adequate capacity to provide 
full and timely payment of the amount guaranteed, the licensee no 
longer meets the requirements of section II.A of this appendix.
* * * * *
0
5. Revise the heading of appendix D to part 30 to read as follows:

Appendix D to Part 30--Alternative Criteria Relating to Use of 
Financial Tests and Self-Guarantee for Providing Reasonable Assurance 
of Funds for Decommissioning by Commercial Companies

* * * * *
0
6. In appendix E to part 30, revise sections II.A.(1) and (2), II.B.(1) 
and (2), II.C.(1), and III.E to read as follows:

Appendix E to Part 30--Criteria Relating to Use of Financial Tests and 
Self-Guarantee for Providing Reasonable Assurance of Funds for 
Decommissioning by Nonprofit Colleges, Universities, and Hospitals

* * * * *

II. * * *

A. * * *

    (1) An unrestricted endowment(s) 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.
    (2) Creditworthiness that demonstrates an adequate capacity to 
provide full and timely payment of the amount guaranteed, if 
necessary.

B. * * *

    (1) For applicants or licensees:
    (a) (Total revenues less total expenditures) divided by total 
revenues must be equal to or greater than 0.04.
    (b) Long term debt divided by net fixed assets must be less than 
or equal to 0.67.
    (c) (Current assets and depreciation fund) divided by current 
liabilities must be greater than or equal to 2.55.
    (d) Operating revenues must be at least 100 times the total 
current decommissioning cost

[[Page 33]]

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.
    (2) Creditworthiness that demonstrates an adequate capacity to 
provide full and timely payment of the amount guaranteed, if 
necessary.
    C. * * *
    (1) The licensee's independent certified public accountant must 
compare the data used by the licensee in the financial test, which 
is derived from the independently audited, year-end financial 
statements for the latest fiscal year, with the amounts in such 
financial statement. The accountant must evaluate the licensee's 
off-balance sheet transactions and provide an opinion on whether 
those transactions could materially adversely affect the licensee's 
ability to pay for decommissioning costs. The accountant must verify 
that the information provided to demonstrate passage of the 
financial test meets the requirements of section II of this 
appendix. In connection with the auditing procedure, the licensee 
must inform the NRC within 90 days of any matters coming to the 
auditor's attention which cause the auditor to believe that the data 
specified in the financial test should be adjusted and that the 
licensee no longer passes the test.
* * * * *
    III. * * *
    E. (1) If, at any time, the licensee becomes aware of 
information that is material to its capacity to provide full and 
timely payment of the amount guaranteed, the licensee will notify 
the Commission in writing within 90 days.
    (2) If the licensee no longer has adequate capacity to provide 
full and timely payment of the amount guaranteed, the licensee no 
longer meets the requirements of section II.A of this appendix.
* * * * *

PART 40--DOMESTIC LICENSING OF SOURCE MATERIAL

0
7. The authority citation for part 40 continues to read as follows:

    Authority:  Atomic Energy Act of 1954, secs. 62, 63, 64, 65, 69, 
81, 83, 84, 122, 161, 181, 182, 183, 184, 186, 187, 193, 223, 234, 
274, 275 (42 U.S.C. 2092, 2093, 2094, 2095, 2099, 2111, 2113, 2114, 
2152, 2201, 2231, 2232, 2233, 2234, 2236, 2237, 2243, 2273, 2282, 
2021, 2022); Energy Reorganization Act of 1974, secs. 201, 202, 206, 
211 (42 U.S.C. 5841, 5842, 5846, 5851); Uranium Mill Tailings 
Radiation Control Act of 1978, sec. 104 (42 U.S.C. 7914); 44 U.S.C. 
3504 note.

0
8. In Sec.  40.36, revise paragraph (e)(2) introductory text 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 or letter 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 10 CFR part 30. For commercial companies, 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 or D to 10 CFR part 30. For nonprofit entities, 
such as colleges, universities, and nonprofit 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 10 CFR part 30. Except for an 
external sinking fund, a parent company guarantee or 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. A 
guarantee by the applicant or licensee may not be used 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

0
9. The authority citation for part 50 continues to read as follows:

    Authority:  Atomic Energy Act of 1954, secs. 11, 101, 102, 103, 
104, 105, 108, 122, 147, 149, 161, 181, 182, 183, 184, 185, 186, 
187, 189, 223, 234 (42 U.S.C. 2014, 2131, 2132, 2133, 2134, 2135, 
2138, 2152, 2167, 2169, 2201, 2231, 2232, 2233, 2234, 2235, 2236, 
2237, 2239, 2273, 2282); Energy Reorganization Act of 1974, secs. 
201, 202, 206, 211 (42 U.S.C. 5841, 5842, 5846, 5851); Nuclear Waste 
Policy Act of 1982, sec. 306 (42 U.S.C. 10226); National 
Environmental Policy Act of 1969 (42 U.S.C. 4332); 44 U.S.C. 3504 
note; Sec. 109, Pub. L. 96-295, 94 Stat. 783.

0
10. In Sec.  50.75, revise paragraph (e)(1)(iii)(C) to read as follows:


Sec.  50.75  Reporting and recordkeeping for decommissioning planning.

* * * * *
    (e) * * *
    (1) * * *
    (iii) * * *
    (C) For commercial companies, 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 or D to 
10 CFR 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 10 CFR part 30. A guarantee by the applicant 
or licensee may not be used in any situation in which the applicant or 
licensee has a parent company holding majority control of voting stock 
of the company.
* * * * *

PART 70--DOMESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL

0
11. The authority citation for part 70 continues is revised to read as 
follows:

    Authority:  Atomic Energy Act of 1954, secs. 51, 53, 57(d), 108, 
122, 161, 182, 183, 184, 186, 187, 193, 223, 234, 274, 1701 (42 
U.S.C. 2071, 2073, 2077(d), 2138, 2152, 2201, 2232, 2233, 2234, 
2236, 2237, 2243, 2273, 2282, 2021, 2297f); Energy Reorganization 
Act of 1974, secs. 201, 202, 206, 211 (42 U.S.C. 5841, 5842, 5846, 
5851); Nuclear Waste Policy Act of 1982, secs. 135, 141 (42 U.S.C. 
10155, 10161); 44 U.S.C. 3504 note.
0
12. In Sec.  70.25, revise paragraph (f)(2) introductory text 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 or letter 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 10 CFR part 30. For commercial companies, 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 or D to 10 CFR part 30. For nonprofit entities, 
such as colleges, universities, and nonprofit 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 10 CFR part 30. Except for an 
external sinking fund, a parent company guarantee or 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. A 
guarantee by the applicant or licensee may not be used 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

[[Page 34]]

decommissioning must contain the following conditions:
* * * * *

PART 72--LICENSING REQUIREMENTS FOR THE INDEPENDENT STORAGE OF 
SPENT NUCLEAR FUEL, HIGH-LEVEL RADIOACTIVE WASTE, AND REACTOR-
RELATED GREATER THAN CLASS C WASTE

0
13. The authority citation for part 72 continues to read as follows:

    Authority:  Atomic Energy Act of 1954, secs. 51, 53, 57, 62, 63, 
65, 69, 81, 161, 182, 183, 184, 186, 187, 189, 223, 234, 274 (42 
U.S.C. 2071, 2073, 2077, 2092, 2093, 2095, 2099, 2111, 2201, 2210e, 
2232, 2233, 2234, 2236, 2237, 2238, 2273, 2282, 2021); Energy 
Reorganization Act of 1974, secs. 201, 202, 206, 211 (42 U.S.C. 
5841, 5842, 5846, 5851); National Environmental Policy Act of 1969 
(42 U.S.C. 4332); Nuclear Waste Policy Act of 1982, secs. 117(a), 
132, 133, 134, 135, 137, 141, 145(g), 148, 218(a) (42 U.S.C. 
10137(a), 10152, 10153, 10154, 10155, 10157, 10161, 10165(g), 10168, 
10198(a)); 44 U.S.C. 3504 note.

0
14. In Sec.  72.30, revise paragraph (e)(2) introductory text to read 
as follows:


Sec.  72.30  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 or letter 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 10 CFR part 30. For commercial companies, 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 or D to 10 CFR part 30. Except for an external 
sinking fund, a parent company guarantee or a guarantee by the 
applicant or licensee may not be used in combination with other 
financial methods to satisfy the requirements of this section. A 
guarantee by the applicant or licensee may not be used 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: December 19, 2022.

    For the Nuclear Regulatory Commission.
Brooke P. Clark,
Secretary of the Commission.
[FR Doc. 2022-27935 Filed 12-30-22; 8:45 am]
BILLING CODE 7590-01-P