[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rule and associated draft guidance, and will hold a public meeting to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