Wis. Admin. Code Department of Health Services DHS 157.15 - Financial assurance and records for decommissioning
(1) FINANCIAL
ASSURANCE REQUIREMENT FOR A SPECIFIC LICENSE.
(a)
Unsealed radioactive material,
sealed sources or plated foils. A person applying for a specific
license authorizing the possession and use of unsealed radioactive material,
sealed sources or plated foils shall submit a decommissioning funding plan as
described in sub. (5) with the license application for any of the following
types of materials:
1. Unsealed radioactive
material with a half-life greater than 120 days and in quantities greater than
10 5 times the applicable quantities listed in ch. DHS 157 Appendix
I.
2. Unsealed radioactive material
with a half-life greater than 120 days involving a combination of isotopes with
R divided by 10 5 being greater than one, where R is defined as the sum of the
ratios of the quantity of each isotope to the applicable value in ch. DHS 157
Appendix I.
3. Sealed sources or
plated foils with a half-life greater than 120 days and in quantities greater
than 10 12 times the applicable quantities listed in ch. DHS 157 Appendix
I.
4. Sealed sources or plated
foils with a half-life greater than 120 days involving a combination of
isotopes with R divided by 10 12 being greater than one, where R is defined as
the sum of the ratios of the quantity of each isotope to the applicable value
in ch. DHS 157 Appendix I.
(b) Other radioactive material. A person
applying for a specific license authorizing the possession and use of
radioactive material not covered by par. (a) with a half-life greater than 120
days and in quantities specified in sub. (4) shall do either of the following:
1. Submit a decommissioning funding plan as
described in sub. (5).
2. Submit a
written certification, signed by the chief financial officer or other
individual designated by management to represent the licensee, that financial
assurance has been provided in the amount prescribed in sub. (4) using one of
the methods described in sub. (5) and a signed original of the financial
instrument obtained to satisfy the requirements of sub. (6). The written
certification may state that the appropriate assurance will be obtained after
the application has been approved and the license issued by the department but
before receipt of radioactive material by the applicant. If the applicant
defers execution of the financial instrument until after the license has been
issued, the applicant shall submit to the department a signed original of the
financial instrument obtained before receipt of licensed material. If the
applicant does not defer execution of the financial instrument, the applicant
shall submit to the department, as part of the certification, a signed original
of the financial instrument obtained to satisfy the requirements of sub.
(6).
(2)
EXEMPTIONS. The following are exempt from the requirements of this section:
(a) A state, local or other government
agency, except for a government agency licensed to handle or process
radioactive waste.
(b) A person
authorized to possess only radioactive materials with a half-life of 65 days or
less.
(c) Other persons exempted by
the department based on a review of the license
application.
(3)
IMPLEMENTATION.
(a) A person who possesses a
specific license authorizing the possession and use of radioactive material
issued on or after the effective date of August 1, 2002, which is of a type
described in sub. (1), shall provide financial assurance for decommissioning
under this section.
(b) A person
who possesses a specific license issued before the effective date of August 1,
2002, shall do one of the following:
1. For a
license authorizing the use of radioactive material meeting the criteria of
sub. (1) (a), submit a decommissioning funding plan as described in sub. (5)
and a certification of financial assurance for at least $1,125,000, under the
criteria in sub. (4), with any application for license renewal.
2. For a license authorizing the use of
radioactive material meeting the criteria of sub. (1) (b), submit a
decommissioning funding plan as described in sub. (5) or a certification of
financial assurance for decommissioning according to the criteria of sub. (4)
with any application for license renewal.
(c) The term of the financial assurance shall
be from the issuance or renewal of the license until the department terminates
the license.
(d) A licensee's
financial assurance arrangements may be reviewed by the department to recognize
any increases or decreases resulting from inflation or deflation, changes in
engineering plans, activities performed or any other condition affecting costs
for decommissioning to ensure that sufficient funding is available to cover
liability that remains until license termination.
(4) REQUIRED AMOUNTS FOR FINANCIAL ASSURANCE.
(a) A licensee shall provide the following
minimum amounts of financial assurance for decommissioning, unless otherwise
specified by the department:
1. One million
one hundred twenty-five thousand dollars if the quantity of material is greater
than 104 but less than or equal to
105 times the applicable quantities of ch. DHS 157
Appendix I in unsealed form. For a combination of isotopes, R divided by
104 is greater than one but R divided by
105 is less than or equal to one.
2. Two hundred twenty-five thousand dollars
if the quantity of material is greater than 103 but
less than or equal to 104 times the applicable
quantities of ch. DHS 157 Appendix I in unsealed form. For a combination of
isotopes, R divided by 103 is greater than one but R
divided by 10 4 is less than or equal to one.
3. One hundred thirteen thousand dollars if
the quantity of material is greater than 1010 but
less than or equal to 1012 times the applicable
quantities of ch. DHS 157 Appendix I in sealed sources or plated foils. For a
combination of isotopes, R divided by 1010 is
greater than one but R divided by 1012 is less than
or equal to one.
(b) The
department may eliminate, reduce or raise the required amount of financial
assurance under par. (a) for an individual applicant or licensee based on the
cost estimate for decommissioning included in the decommissioning funding plan
required under sub. (5) (a).
(5) DECOMMISSIONING FUNDING PLAN.
(a) A decommissioning funding plan shall be
submitted to the department for review and approval and shall include all the
following information:
1. A detailed cost
estimate for decommissioning in an amount reflecting all of the following:
a. Probable extent of contamination through
the use or possession of radioactive material at the facility or site and the
projected cost of removal of the contamination to a level specified by the
department. The evaluation shall encompass probable contaminating events
associated with the licensee's or applicant's operation and shall be based on
factors such as quantity, half-life, radiation hazard, toxicity and chemical
and physical forms.
b. The extent
of possible offsite property damage caused by operation of the facility or
site.
c. The cost of removal and
disposal of radiation sources that are or would be generated, stored, processed
or otherwise present at the licensed facility or site.
d. The costs involved in reclaiming the
property on which the facility or site is located and all other properties
contaminated by radioactive material authorized under the license.
e. The volume of onsite subsurface material
containing residual radioactivity that will require remediation to meet the
criteria for license termination.
f. The cost of an independent contractor to
perform all decommissioning activities including an adequate contingency
factor.
2. Identification
of and justification for using the key assumptions contained in the
decommissioning cost estimate.
3. A
description of the method for assuring funds for decommissioning according to
sub. (6), including means for adjusting cost estimates and associated funding
levels periodically over the life of the facility.
(b) The decommissioning funding plan shall
also contain the licensee's certification that financial assurance has been
provided in the amount of the cost estimate for decommissioning and that a
signed original of the financial instrument obtained to satisfy the
requirements of sub. (6) has been submitted and accepted, unless a previously
submitted and accepted financial instrument continues to cover the cost
estimate for decommissioning.
(c)
At intervals not to exceed 3 years, the licensee shall resubmit the
decommissioning funding plan to the department with adjustments as necessary to
account for changes in costs and extent of contamination. The amount of
financial assurance shall not be decreased until the updated decommissioning
funding plan is approved. The licensee shall update the information submitted
with the original or previously approved decommissioning funding plan, and
shall specifically consider the effect of all the following events on
decommissioning costs:
1. Spills of
radioactive material producing additional residual radioactivity in onsite
subsurface material.
2. Waste
inventory increasing above the amount estimated.
3. Waste disposal costs increasing above the
amount previously estimated.
4.
Facility modifications.
5. Changes
in authorized possession limits.
6.
Actual remediation costs that exceed the previous cost estimate.
7. Onsite disposal.
8. Use of a settling
pond.
(6)
FINANCIAL ASSURANCE OPTIONS. A licensee may use any of the following methods to
provide financial assurance for decommissioning:
(a)
Prepayment. Prepayment
is the deposit prior to operation into an account segregated from licensee
assets and outside the licensee's administrative control of cash or liquid
assets in an amount sufficient to pay decommissioning costs. Prepayment may be
in the form of a trust, escrow account, government fund, certificate of deposit
or deposit of government securities.
(b)
Surety method, insurance or other
guarantee. Payment of future decommissioning costs shall be guaranteed
by a surety method, insurance or other guarantee. A surety method may be in the
form of a surety bond, letter of credit or line of credit. Self insurance, or
any method which essentially constitutes self-insurance, may not be used as a
method of providing financial assurance. Any surety method or insurance used to
provide financial assurance for decommissioning must meet all of the following
criteria:
1. The surety method or insurance
shall be open-ended or, if written for a specified term, renewed automatically
unless 90 days or more prior to the renewal date, the issuer notifies the
department, the beneficiary and the licensee of its intention not to renew. The
surety method or insurance shall also provide that the full face amount be paid
to the beneficiary automatically prior to the expiration without proof of
forfeiture if the licensee fails to provide a replacement acceptable to the
department within 30 days after receipt of notification of
cancellation.
2. The surety method
or insurance shall be payable to a trust established for decommissioning costs.
The department shall approve the trustee and the trust.
Note: An acceptable trustee includes the State of Wisconsin or an entity having the authority to act as a trustee and whose trust operations are regulated and examined by a state or federal government agency.
3. The surety method
or insurance shall remain in effect until the department terminates the
license.
(c)
External sinking fund. An external sinking fund may be used in
which deposits are made at least annually, coupled with a surety method or
insurance, the value of which may decrease by the amount being accumulated in
the sinking fund. An external sinking fund may be in the form of a trust,
escrow account, government fund, certificate of deposit or deposit of
government securities. The surety or insurance provisions shall meet the
requirements of par. (b).
(d)
Statement of intent. A state or local government licensee
exempt under sub. (2) shall submit a written statement of intent containing a
cost estimate for decommissioning or an amount based on sub. (4). The cost
estimate shall indicate that funds for decommissioning will be obtained when
necessary.
(7) RECORDS.
(a) A licensee shall keep the following
records of information related to decommissioning of a facility in an
identified location until the site is released for unrestricted use:
1. Records of spills or other unusual
occurrences involving the spread of radioactive contamination in and around the
facility, equipment or site. The records may be limited to instances where
contamination remains after any cleanup procedures or when there is reasonable
likelihood that radioactive contaminants may have spread to inaccessible areas
or into porous materials such as concrete. The records shall include any known
information on identification of involved nuclides, quantities, forms and
concentrations.
2. As-built
drawings and modifications of structures and equipment in restricted areas
where radioactive materials are used or stored, and of locations of possible
inaccessible contamination such as buried pipes that may contain radioactive
contaminants. If required drawings are referenced, each relevant document does
not need to be indexed individually. If drawings are not available, a licensee
shall substitute appropriate records of available information concerning the
areas and locations of inaccessible contamination.
Note: As-built architectural and engineering drawings need to reflect the final details of the structures and equipment as they were constructed.
3.
Except for areas containing only sealed sources that have not leaked or where
no contamination remains after a leak, or radioactive materials with half-lives
of less than 65 days, a list containing all the following:
a. All areas currently and formerly
designated as restricted areas.
b.
All areas outside of restricted areas that require documentation under subd.
1.
c. All areas outside of
restricted areas where current and previous wastes have been buried as
documented under s. DHS 157.31 (9).
d. All areas outside of restricted areas that
contain radioactive material such that, if the license expired, the licensee
would be required to either decontaminate the area to meet the criteria for
decommissioning in s. DHS 157.13 (11) (d) or apply for approval for disposal
under s. DHS 157.30 (2).
4. Records of the cost estimate performed for
the decommissioning funding plan or the amount certified for decommissioning
and records of the funding method used for assuring funds.
(b) A licensee shall keep the records in par.
(a) until the site is decommissioned and approved by the department for
unrestricted use.
(c) Prior to a
licensed activity being transferred to another licensee under s. DHS 157.13 (10) (b), the original licensee shall transfer all records under par. (a) to
the new licensee. The new licensee shall be responsible for maintaining the
records until their license is terminated by the department.
(d) The list under par. (a) 3. shall be
updated every 2 years.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.