10-144-220 Me. Code R. § C-8

Current through 2024-51, December 18, 2024

Section 144-220-C-8 - General requirements for the issuance of specific licenses

A license application will be approved if the Agency determines that:

A. The applicant is qualified by reason of training and experience to use the material in question for the purpose requested in accordance with this rule in such a manner as to minimize danger to public health and safety or property;

B. The applicant's proposed equipment, facilities, and procedures are adequate to minimize danger to public health and safety or property;

C. The issuance of the license will not be inimical to the health and safety of the public; and

D. The applicant satisfies any applicable special requirements in C.9, C.10. or C.11. and Part E, Part G, and Part K of this rule.

E. Environmental report, commencement of construction. In the case of an application for a license to receive and possess radioactive material for commercial waste disposal by land burial, source material milling, or for the conduct of any other activity which the Agency determines will significantly affect the quality of the environment, the Agency, before commencement of construction of the plant or facility in which the activity will be conducted, has concluded, after weighing the environmental, economic, technical and other benefits against environmental costs and considering available alternatives, that the action called for is the issuance of the proposed license, with any appropriate conditions to protect environmental values. Commencement of construction prior to such conclusion shall be grounds for denial of a license to receive and possess radioactive material in such plant or facility. As used in this paragraph the term "commencement of construction" means any clearing of land, excavation, or other substantial action that would adversely affect the environment of a site. The term does not mean site exploration, necessary roads for site exploration, borings to determine foundation conditions, or other pre-construction monitoring or testing to establish background information related to the suitability of the site or the protection of environmental values.

F. Financial surety for decommissioning, recovery or site reclamation.

(1) Each applicant for a specific license authorizing the possession and use of special nuclear material, source material, or unsealed radioactive material in quantities and amounts in excess of those indicated in Table F.1 shall submit a decommissioning funding plan, as described in paragraph (4) of this section, in the event of planned or unplanned decommissioning, recovery, or site reclamation. The decommissioning funding plan must also be submitted when a combination of isotopes is involved if R divided by 105 is greater than 1 (unity rule), where R is defined here as the sum of the ratios of quantity of each isotope to the applicable value in Part C, Appendix E.

Table F.1

Type	Exceeding
Special Nuclear Material	10⁵ times Part C, App. E
Source Material	100 µCi in readily dispersible form
Radioactive Material	Half-life greater than 120 days and 10⁵ times Part C, App. E

(2) Each applicant for or holder of a specific license authorizing possession and use of special nuclear material, source material, or radioactive material (for sealed sources or plated foils of half-life greater than 120 days and in quantities exceeding 10¹² times the applicable quantities set forth in Appendix E of Part C, or when a combination of isotopes is involved if R, as defined in C.8.F(1), divided by 10¹² is greater than 1) in excess of those indicated in Table F. 2) shall either:

(a) Submit a decommissioning funding plan as described in paragraph (4) of this section; or

(b) Submit a certification that financial assurance for decommissioning has been provided in the amount prescribed by Table F.2 of this section using one of the methods described in paragraph (7) of this section. For an applicant, this certification may state that the appropriate assurance will be obtained after the application has been approved and the license issued but prior to the receipt of licensed material.

Table F.2

Type of Radioactive Material	Exceeding	Assurance Amount
Special Nuclear	Greater than 10⁴ but less than or equal to 10⁵ times the applicable quantities*	$1,125,000
Special Nuclear	Greater than 10³ but less than or equal to 10⁴ times the applicable quantities*	$225,000
Source Material	Greater than 10 mCi but less than or equal to 100 mCi in a readily dispersible form	$225,000
Radioactive Material	Greater than 10⁴ but less than or equal to 10⁵ times the applicable quantities in unsealed form*	$1,125,000
	Greater than 10³ but less than or equal to 10⁴ times the applicable quantities in unsealed form*	$225,000
	Greater than 10¹⁰ times the applicable quantities in sealed sources	$113,000

*As indicated in Part C, App. E

(3) Each applicant for a specific license authorizing the possession and use of more than 100 mCi of source material in a readily dispersible form shall submit a decommissioning funding plan as described in C.8.F(5).

(4) Each applicant for a specific license authorizing possession and use of quantities of source material greater than 10 mCi but less than or equal to 100 mCi in a readily dispersible form shall either-

(a) Submit a decommissioning funding plan as described in paragraph C.8.F(5) of this section; or

(b) Submit a certification that financial assurance for decommissioning has been provided in the amount of $225,000 by June 2, 2005 using one of the methods described in C.8.F(7). For an applicant, this certification may state that the appropriate assurance will be obtained after the application has been approved and the license issued but before the receipt of licensed material. If the applicant defers execution of the financial instrument until after the license has been issued, a signed original of the financial instrument obtained to satisfy the requirements of C.8.F must be submitted to the Agency prior to receipt of licensed material. If the applicant does not defer execution of the financial instrument, the applicant shall submit to the Agency, as part of the certification, a signed original of the financial instrument obtained to satisfy the requirements of C.8.F(7).

(5) Each decommissioning funding plan must be submitted for review and approval and must contain:

(a) A detailed cost estimate for decommissioning, in an amount reflecting:

i. The cost of an independent contractor to perform all decommissioning activities;

ii. The cost of meeting the D.1402 criteria for unrestricted use, provided that, if the applicant or licensee can demonstrate its ability to meet the provisions of D.1403, the cost estimate may be based on meeting the D.1403 criteria;

iii. The volume of onsite subsurface material containing residual radioactivity that will require remediation to meet the criteria for license termination; and

iv. An adequate contingency factor.

(b) Identification of and justification for using the key assumptions contained in the DCE;

(c) A description of the method of assuring funds for decommissioning from paragraph (f) of this section, including means for adjusting cost estimates and associated funding levels periodically over the life of the facility;

(d) A certification by the licensee that financial assurance for decommissioning has been provided in the amount of the cost estimate for decommissioning; and

(e) A signed original of the financial instrument obtained to satisfy the requirements of C.8.F(7) (unless a previously submitted and accepted financial instrument continues to cover the cost estimate for decommissioning).

(6) At the time of license renewal and at intervals not to exceed 3 years, the decommissioning funding plan must be resubmitted with adjustments as necessary to account for changes in costs and the extent of contamination. If the amount of financial assurance will be adjusted downward, this cannot be done until the updated decommissioning funding plan is approved. The decommissioning funding plan must update the information submitted with the original or prior approved plan, and must specifically consider the effect of the following events on decommissioning costs:

(a) Spills of radioactive material producing additional residual radioactivity in onsite subsurface material;

(b) Waste inventory increasing above the amount previously estimated;

(c) Waste disposal costs increasing above the amount previously estimated;

(d) Facility modifications;

(e) Changes in authorized possession limits;

(f) Actual remediation costs that exceed the previous cost estimate;

(g) Onsite disposal; and

(h) Use of a settling pond.

(7) Financial assurance must be provided by one or more of the following methods:

(a) Prepayment. Prepayment is the deposit prior to the start of operation into an account segregated from licensee assets and outside the licensee's administrative control of cash or liquid assets that will retain their value over the projected operating life of the facility and that are in an amount such that the principal plus accumulated earnings would be sufficient to pay the necessary costs. Prepayment may be in the form of a trust, escrow account, government fund, certificate of deposit, or deposit of government securities.

(b) A surety method insurance or other guarantee method. These methods guarantee that decommissioning costs will be paid. A surety method may be in the form of a surety bond, letter of credit, or line of credit. A parent company guarantee of funds for decommissioning costs based on a financial test may be used if the guarantee and test are contained in Appendix C of this Part. A parent company guarantee may not be used in combination with other financial methods to satisfy the requirements of this section. A guarantee of funds by the applicant or licensee for decommissioning costs based on a financial test are as contained in Appendix D of this Part. A guarantee by the applicant or licensee may not be used in combination with any other financial methods to satisfy the requirements of this section or in any other 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 must contain the following conditions:

(i) The surety or insurance must be open-ended or, if written for a specified term, such as five years, must be renewed automatically unless 90 days or more prior to the renewal date, the issuer notifies the Agency, the beneficiary, and the licensee of its intention not to renew. The surety or insurance must also provide that the beneficiary may automatically collect prior to the expiration without proof of forfeiture if the licensee fails to provide a replacement acceptable to the Agency within 30 days after receipt of notification of cancellation.

(ii) The beneficiary of the surety or insurance must be a trustee acceptable to the Agency such as an appropriate State or federal government agency or a major financial organization.

(iii) The surety or insurance must remain in effect until the Agency has terminated the license.

(c) An external sinking fund 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 is a fund established and maintained by the periodic deposit of a prescribed amount into an account segregated from licensee assets and outside the licensee's administrative control in which the total amount of the periodic deposits plus accumulated earnings would be sufficient to pay the necessary costs at the time termination of operation is expected. An external sinking fund may be in the form of a trust, escrow account, government fund, certificate of deposit, or deposit of government securities.

(d) In the case of State, or local government licensees, a certification that the appropriate government entity will be guarantor of funds.

(e) Other funding methods, which are demonstrated by the applicant or licensee to provide comparable assurance to methods, listed in paragraphs (7)(a) through (c) of this section.

(f) Each person licensed under this Part shall keep records of information important to the safe and effective decommissioning of the facility in an identified location until the license is terminated by the Agency. Before licensed activities are transferred or assigned in accordance with this Part, licensees shall transfer all records described in this paragraph to the new licensee. If records of relevant information are kept for other purposes, reference to these records and their locations may be used. Information the Agency considers important to decommissioning consists of:

(i) Records of spills or other unusual occurrences involving the spread of contamination in and around the facility, equipment, or site. These records may be limited to instances when contamination remains after any cleanup procedures or when there is reasonable likelihood that contaminants may have spread to inaccessible areas as in the case of possible seepage into porous materials such as concrete.

These records must include any known information on identification of involved nuclides, quantities, forms, and concentrations.

(ii) As-built drawings and modifications of structures and equipment in restricted areas where radioactive materials are used and/or stored, and of locations of possible inaccessible contamination such as buried pipes, which may be subject to contamination. If required drawings are referenced, each relevant document need not be indexed individually. If drawings are not available, the licensee shall substitute appropriate records of available information concerning these areas and locations.

(iii) Except for areas containing only sealed sources (provided the sources have not leaked or no contamination remains after any leak) or radioactive materials having only half-lives of less than 65 days, a list contained in a single document and updated every two years, of the following:

(a) All areas designated and formerly designated restricted areas as defined in A.2;

(b) All areas outside of restricted areas that require documentation under C.8.F(7)(f)(i);

(c) All areas outside of restricted areas where current and previous wastes have been buried as documented under D.2108; and

(d) All areas outside of restricted areas that contain material such that, if the license expired, the licensee would be required to either decontaminate the area to meet the criteria for decommissioning in Part D or apply for approval for disposal under D.2002.

(iv) Records of the cost estimate performed for the decommissioning funding plan or of the amount certified for decommissioning, and records of the funding method used for assuring funds if either a funding plan or certification is used.

10-144 C.M.R. ch. 220, § C-8