Ohio Administrative Code|Rule 3701:1-40-17 | Financial assurance and record keeping for decommissioning.

                                                
(A) Prior to the director issuing a
		  radioactive materials license:
(1) Each applicant for a
			 specific license or license renewal authorizing the possession and use of
			 unsealed radioactive material of half-life greater than one hundred twenty days
			 and in quantities exceeding ten thousand times the applicable quantities set
			 forth in appendix A to this rule shall submit a decommissioning funding plan as
			 described in paragraph (D) of this rule. The decommissioning funding plan must
			 also be submitted when a combination of radionuclides is involved if R divided
			 by ten thousand is greater than one, where R is defined here as the sum of the
			 ratios of the quantity of each radionuclide to the applicable value in appendix
			 A to this rule.
(2) Each applicant for a
			 specific license or license renewal authorizing the possession and use of
			 sealed sources or plated foils of half-life greater than one hundred twenty
			 days and in quantities exceeding one trillion times the applicable quantities
			 of appendix A to this rule, shall submit a decommissioning funding plan as
			 described in paragraph (D) of this rule. The decommissioning funding plan must
			 also be submitted when a combination of radionuclides is involved if R divided
			 by one trillion is greater than one, where R is defined here as the sum of the
			 ratios of the quantity of each radionuclide to the applicable value in appendix
			 A to this rule.
(B) Prior to the director issuing a
		  radioactive materials license, each applicant for a specific license or license
		  renewal authorizing possession and use of radioactive material of half-life
		  greater than one hundred twenty days and in quantities specified in paragraph
		  (C) of this rule shall either:
(1) Submit a
			 decommissioning funding plan as described in paragraph (D) of this rule;
			 or
(2) Submit a
			 certification that financial assurance for decommissioning has been provided in
			 the amount prescribed by paragraph (C) of this rule using one of the methods
			 described in paragraph (E) of this rule. The applicant shall submit to the
			 director, as part of the certification, a signed original of the financial
			 instrument obtained to satisfy the requirements of paragraph (E) of this
			 rule.
(C) Prior to the director issuing a
		  radioactive materials license, an applicant providing certification of
		  financial assurance for decommissioning as specified in paragraph (B)(2) of
		  this rule shall provide the certification in a monetary amount based upon the
		  quantity of licensed material specified as follows:
(1) Greater than one
			 thousand but less than or equal to ten thousand times the applicable quantities
			 of appendix A to this rule in unsealed form. For a combination of
			 radionuclides, if R, as defined in paragraph (A) of this rule, divided by one
			 thousand is greater than one but R divided by ten thousand is less than or
			 equal to one, the sum of three hundred thousand dollars.
(2) Greater than ten
			 billion but less than one trillion times the applicable quantities of appendix
			 A to this rule in sealed sources or plated foils. For a combination of
			 radionuclides, if R, as defined in paragraph (A) of this rule, divided by ten
			 billion is greater than one but R divided by one trillion is less than or equal
			 to one, the sum of one hundred fifty thousand dollars.
(D) .
(1) 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 criteria specified in paragraph (B) of rule 3701:1-38-22 of the
				  Administrative Code for unrestricted use, provided that, if the applicant or
				  licensee can demonstrate its ability to meet the provisions of paragraph (D) of
				  rule 3701:1-38-22 of the Administrative Code, the cost estimate may be based on
				  meeting this 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 decommissioning cost estimate;
(c) A description of the method of assuring funds for
				decommissioning from paragraph (E) of this rule, 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 paragraph (E) of this rule (unless a previously
				submitted and accepted financial instrument continues to cover the cost
				estimate for decommissioning).
(2) At the time of
			 license renewal and at intervals not to exceed three years, the decommissioning
			 funding plan must be resubmitted with adjustments as necessary to account for
			 the 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.
(E)  Financial assurance for
		  decommissioning, either by a decommissioning funding plan or certification of
		  financial assurance, shall be provided by the licensee and approved by the
		  director prior to the issuance of the license and shall be provided by one or
		  more of the following methods:
(1) Prepayment by
			 depositing into an account segregated from licensee assets and outside the
			 licensee's administrative control, cash or liquid assets such that the
			 amount of funds will be 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.
(2) Surety, insurance, or
			 other method in accordance with paragraph (F) of this rule, that guarantees
			 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 guarantee by the
			 applicant or licensee may not be used in combination with any other financial
			 methods used to satisfy the requirements of this paragraph or in any situation
			 where the applicant or licensee has a parent company holding majority control
			 of the voting stock of the company.
(3) A parent company
			 guarantee of funds for decommissioning costs based on a financial test may be
			 used provided that the parent company meets the requirements specified in
			 appendix B of this rule. A parent company guarantee may not be used in
			 combination with other financial methods to satisfy the requirements of this
			 rule.
(4) For commercial
			 corporations that issue bonds, a guarantee of funds by the applicant or
			 licensee for decommissioning costs based on a financial test may be used
			 provided that the guarantee meets the requirements of appendix C to this
			 rule.
(5) For commercial
			 companies that do not issue bonds, a guarantee of funds for decommissioning
			 costs may be used provided that the guarantee meets the requirements of
			 appendix D to this rule.
(6) For nonprofit
			 colleges, universities, hospitals, or research and development entities, a
			 guarantee of funds for decommissioning costs may be used provided that the
			 guarantee meets the requirements of appendix E to this rule. The director may
			 require proof of nonprofit status.
(7) 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 setting aside funds periodically in an account segregated from
			 licensee assets and outside the licensee's administrative control in which
			 the total amount of funds would be sufficient to pay decommissioning 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. The surety or insurance
			 provisions must be as stated in paragraph (E)(2) of this rule.
(8) In the case of state
			 or local government licensee, a statement of intent containing a cost estimate
			 for decommissioning or an amount specified in paragraphs (C)(1) to (C)(3) of
			 this rule, and indicating that funds for decommissioning will be obtained when
			 necessary. As used in this rule, "state or local government licensee"
			 does not include government owned or assisted colleges, universities or
			 hospitals.
(F) Any surety method or insurance used
		  to provide financial assurance for decommissioning shall be in the form of
		  instruments that contain language as provided in appendix F to this rule, and
		  shall contain the following conditions:
(1) The surety method or
			 insurance must be open-ended or, if written for a specified term, such as five
			 years, must be renewed automatically unless ninety days or more prior to the
			 renewal date, the issuer notifies the director, the beneficiary, and the
			 licensee of its intention not to renew. The surety method or insurance must
			 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 director within thirty days after
			 receipt of notification of cancellation.
(2) The surety method or
			 insurance must be payable to a trust established for decommissioning costs. The
			 trustee and trust must be acceptable to the director. An acceptable trustee
			 includes an appropriate state or federal government agency or an entity which
			 has the authority to act as a trustee and whose trust operations are regulated
			 and examined by a federal or state agency.
(3) The surety method or
			 insurance must remain in effect until the director has terminated the
			 license.
(4)  The surety company
			 issuing the bond must, at a minimum, be among those listed as acceptable in the
			 "Circular 570" of the United States department of the treasury (in
			 effect July 1, 2005).
(G) A licensee must notify the director
		  by certified mail within ten business days of the commencement of a voluntary
		  or involuntary bankruptcy proceeding under Title 11 of the United States Code
		  (as amended April 20, 2005). A licensee who fulfills the financial assurance
		  requirements by obtaining a trust fund, surety bond, or other acceptable
		  financial assurance will be deemed to be without the required financial
		  assurance or liability coverage in the event of bankruptcy of the trustee or
		  issuing institution, or a suspension or revocation of the authority of the
		  trustee institution issuing the instrument. The licensee shall establish other
		  financial assurance within sixty days after such an event.
(H) Financial assurance for
		  decommissioning, either by a decommissioning funding plan or certification of
		  financial assurance, that is provided by a contract of insurance shall not
		  include any arrangement that constitutes self-insurance. As used in this
		  rule:
(1) "Insurance"
			 means a contract issued or underwritten by an insurance company, insurance
			 service, or insurance organization which is licensed to engage in the business
			 of insurance in Ohio, that binds the insurer to indemnify another against a
			 specified loss in return for premiums paid.
(2) "Self
			 insurance" means a contract of insurance issued either by the licensee or
			 by an insurer affiliated with or an affiliate of the licensee.
(3) "Affiliate
			 of" or "affiliated with" means that the licensee, either
			 directly or indirectly, through one or more intermediaries or subsidiaries,
			 controls, is controlled by, or is under common control with the
			 insurer.
(4) "Control",
			 including "controlled by", and "under common control with"
			 means the possession, direct or indirect, of the power to direct or cause the
			 direction of the management and policies of a person, whether through the
			 ownership of voting securities, by contract, proxy, membership on the board, or
			 otherwise.
(I) Each person licensed under this
		  chapter, and rule 3701:1-38-02 of the Administrative Code as well as chapters
		  containing rules regarding manufacturing and distribution (Chapter 3701:1-46 of
		  the Administrative Code), industrial radiography (Chapter 3701:1-48 of the
		  Administrative Code), well logging Chapter 3701:1-49 of the Administrative
		  Code), irradiators (Chapter 3701:1-52 of the Administrative Code), and medical
		  use (Chapter 3701:1-58 of the Administrative Code) promulgated pursuant to
		  Chapter 3748. of the Revised Code shall keep records of information important
		  to the decommissioning of a facility in an identified location until the site
		  is released for unrestricted use. Before licensed activities are transferred or
		  assigned in accordance with paragraph (B) of rule 3701:1-40-20 of the
		  Administrative Code, a licensee shall transfer all records described in this
		  paragraph to the new licensee, which will be responsible for maintaining these
		  records until the license is terminated. If records important to the
		  decommissioning of a facility are kept for other purposes, reference to these
		  records and their locations may be used. As used in this rule,
		  "information important to the decommissioning of a facility" includes
		  the following:
(1) 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
			 radionuclides, 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 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.
(3) Except in the case of
			 an area that contains only a sealed source, provided the source has not leaked
			 or no contamination remains after any leak, or in the case of a byproduct or
			 accelerator produced material having only a half-life of less than sixty-five
			 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 rule 3701:1-38-01 of the Administrative Code.
(b) All areas outside of restricted areas that require
				documentation under paragraph (I)(1) of this rule.
(c) All areas outside of restricted areas where current and
				previous wastes have been buried as documented under rule 3701:1-38-20 of the
				Administrative Code; 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 rule
				3701:1-38-22 of the Administrative Code, or apply for approval for disposal
				under rule 3701:1-38-19 of the Administrative Code.
(4) 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.

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