Document: NRC Regulatory Guide
Document ID: 8ebf2253-f3d2-4bcd-ac80-7cbf6ab8d420
Document Type: regulatory_guide
Title: Assuring the Availability of Funds for Decommissioning Nuclear Reactors + HISTORY –HISTORY 02/2022 – DG-1348 Revision 1, Proposed Revision 3 06/2018 – DG-1348 , Proposed Revision 3 11/2016 – Periodic Review of Revision 2 – Reviewed with no issues identified 01/2011 – DG-1229 , Proposed Revision 2 05/2001 – DG-1106 , Proposed Revision 1 05/1989 – DG-1003 , Proposed Revision 0 (Rev. 1)
Source: NRC Regulatory Guide Division 1
Source URL: https://www.nrc.gov/docs/ML2134/ML21347A081.pdf
Revision Date: 2023-05
Chapter: 
Section ID: RG-1.159
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CFR Title: 

Content:
amples of these methods in Appendices A-1, A-2, and A-3 of this guide. These sample forms have been provided for general guidance. Specific provisions may not be applicable to particular licensees and may be modified as a licensee’s specific situation warrants. The NRC expects that all prepayment or external sinking fund mechanisms will, at a minimum, satisfy the following conditions: (a) the instrument will meet the requirements of state law for that instrument, (b) it will provide for the segregation of decommissioning funds from the licensee’s other assets, (c) it will ensure that the funds are outside the administrative control of the licensee, (d) it will ensure that special care is taken to DG-1348 Revision 1, Page 17 safeguard the funds from investment risks, and (e) it will provide safeguards against improper payments from the funds. The conditions stipulated in 10 CFR 50.75(e)(1)(i) and (ii), that a prepayment account or an external sinking fund, respectively, be “segregated from licensee assets,” are intended to ensure that the integrity of decommissioning funds will be maintained, especially with respect to protection from creditors in a bankruptcy situation, and to ensure continuity of funding during license transfers. A case-by-case “reasonableness” standard will be applied to licensee compliance with this provision. Key indicators of segregation include separation of the funds from the other assets of the licensee, through a transfer to an independent custodian or manager, and separate accounting. The phrase “segregation from licensee assets” does not require that the fund be placed in an entity, such as a grantor trust, that is established as a separate tax-paying entity. Licensees should be aware, however, that such a trust will provide greater protection in bankruptcy than the escrow or certificate of deposit. 2.2.2 The following key provisions should be included in the trust instrument (or, when relevant, in the escrow or government