| (III) limitations;
(ii) survey techniques; and
(iii) individual monitoring devices;
(C) equipment to be used:
(i) handling equipment and remote handling tools;
(ii) sources of radiation;
(iii) storage, control, disposal, and transport of
equipment and sources of radiation;
(iv) operation and control of equipment; and
(v) maintenance of equipment;
(D) the requirements of pertinent federal and state
regulations;
(E) the licensee's written operating, safety, and emergency
procedures; and
(F) the licensee's record keeping procedures.
(2) Isotope quantities (for use in subsection (gg)
of this section).
Attached Graphic
(3) Criteria relating to use of financial tests and
parent company guarantees for providing reasonable assurance of funds
for decommissioning.
(A) Introduction. An applicant or licensee may provide
reasonable assurance of the availability of funds for decommissioning
based on obtaining a parent company guarantee that funds will be available
for decommissioning costs and on a demonstration that the parent company
passes a financial test. This paragraph establishes criteria for passing
the financial test and for obtaining the parent company guarantee.
(B) Financial test.
(i) To pass the financial test, the parent company
shall meet the criteria of either subclause (I) or (II) of this clause.
(I) The parent company shall have:
(-a-) two of the following three ratios:
(-1-) a ratio of total liabilities to net worth less
than 2.0;
(-2-) a ratio of the sum of net income plus depreciation,
depletion, and amortization to total liabilities greater than 0.1;
and
(-3-) a ratio of current assets to current liabilities
greater than 1.5;
(-b-) net working capital and tangible net worth each
at least six times the current decommissioning cost estimates for
the total of all facilities or parts thereof (or prescribed amount
if a certification is used);
(-c-) tangible net worth of at least $10 million; and
(-d-) 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 for the total of all facilities or
parts thereof (or prescribed amount if a certification is used.)
(II) The parent company shall have:
(-a-) a current rating for its most recent bond issuance
of AAA, AA, A, or BBB as issued by Standard and Poor's or Aaa, Aa,
A, or Baa as issued by Moody's;
(-b-) tangible net worth each at least six times the
current decommissioning cost estimate for the total of all facilities
or parts thereof (or prescribed amount if a certification is used);
(-c-) tangible net worth of at least $10 million; and
(-d-) 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 for the total of all facilities or
parts thereof (or prescribed amount if certification is used).
(ii) The parent company's independent certified public
accountant shall have compared 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. In connection with that procedure,
the licensee shall inform the department within 90 days of any matters
coming to the auditor's attention that 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) After the initial financial test, the parent
company shall repeat the passage of the test within 90 days after
the close of each succeeding fiscal year.
(iv) If the parent company no longer meets the requirements
of clause (i) of this subparagraph, the licensee shall send notice
to the department of intent to establish alternate financial assurance
as specified in the department's regulations. The notice shall be
sent by certified mail within 90 days after the end of the fiscal
year for which the year-end financial data show that the parent company
no longer meets the financial test requirements. The licensee shall
provide alternate financial assurance within 120 days after the end
of such fiscal year.
(C) Parent company guarantee. The terms of a parent
company guarantee that an applicant or licensee obtains shall provide
that:
(i) the parent company guarantee will remain in force
unless the guarantor sends notice of cancellation by certified mail
to the licensee and the department. Cancellation may not occur, however,
during the 120 days beginning on the date of receipt of the notice
of cancellation by both the licensee and the department, as evidenced
by the return receipts;
(ii) if the licensee fails to provide alternate financial
assurance as specified in the department's rules within 90 days after
receipt by the licensee and the department of a notice of cancellation
of the parent company guarantee from the guarantor, the guarantor
will provide such alternative financial assurance in the name of the
licensee;
(iii) the parent company guarantee and financial test
provisions shall remain in effect until the department has terminated
the license; and
(iv) if a trust is established for decommissioning
costs, the trustee and trust shall be acceptable to the department.
An acceptable trustee includes an appropriate state or federal government
agency or an entity that has the authority to act as a trustee and
whose trust operations are regulated and examined by a federal or
state agency.
(4) Criteria relating to use of financial tests and
self-guarantees for providing reasonable assurance of funds for decommissioning.
(A) Introduction. An applicant or licensee may provide
reasonable assurance of the availability of funds for decommissioning
based on furnishing its own guarantee that funds will be available
for decommissioning costs and on a demonstration that the company
passes a financial test of subparagraph (B) of this paragraph. Subparagraph
(B) of this paragraph establishes criteria for passing the financial
test for the self-guarantee and establishes the terms for a self-guarantee.
(B) Financial test.
(i) To pass the financial test, a company shall meet
all of the following criteria:
(I) tangible net worth at least 10 times the total
current decommissioning cost estimate for the total of all facilities
or parts thereof (or the current amount required if certification
is used for all decommissioning activities for which the company is
responsible as self-guaranteeing licensee and as parent-guarantor);
(II) assets located in the United States amounting
to at least 90 percent of total assets or at least 10 times the total
current decommissioning cost estimate (or the current amount required
if certification is used for all decommissioning activities for which
the company is responsible as self-guaranteeing licensee and as parent-guarantor);
and
(III) a current rating for its most recent bond issuance
of AAA, AA, A as issued by Standard and Poor's, or Aaa, Aa, A as issued
by Moody's.
(ii) To pass the financial test, a company shall meet
all of the following additional criteria:
(I) the company shall have at least one class of equity
securities registered under the Securities Exchange Act of 1934;
(II) the company's independent certified public accountant
shall have compared the data used by the company in the financial
test that is derived from the independently audited year-end financial
statements, based on United States generally accepted accounting practices,
for the latest fiscal year, with the amounts in such financial statement.
In connection with that procedure, the licensee shall inform the department
within 90 days of any matters coming to the auditor's attention that
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; and
(III) after the initial financial test, the company
shall repeat the passage of the test within 90 days after the close
of each succeeding fiscal year.
(iii) If the licensee no longer meets the criteria
of clause (i) of this subparagraph, the licensee shall send immediate
notice to the department of its intent to establish alternate financial
assurance as specified in the department's rules within 120 days of
such notice.
(C) Company self-guarantee. The terms of a self-guarantee
that an applicant or licensee furnishes shall provide that:
Cont'd... |
