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
CFR Part: 
CFR Title: 

Content:
oviding Reasonable Assurance of Funds for Decommissioning,” to 10 CFR Part 30, “Rules of General Applicability to Domestic Licensing of Byproduct Material.”) insurance—Insurance, in this case, would be similar to surety bonding, as discussed below, in that it would guarantee that decommissioning costs will be paid to a trustee, should the licensee default. letter of credit—A binding agreement by which the issuing party, such as a bank or other financial institution, agrees on behalf of the applicant or licensee (the account party) to pay a governmental or government-approved authority (the beneficiary) in the event of any default by the licensee in the performance of decommissioning. line of credit—An arrangement of the licensee with a lender (a bank or other financial institution) in which the lender agrees to provide funds required for decommissioning of the licensee’s facility. The maximum amount of credit stated in the contract between the applicant or licensee and the lender must be at least sufficient to equal the certified or estimated cost of decommissioning. DG-1348 Revision 1, Page 27 parent company guarantee—A promise by one party (the guarantor) to pay specified debts or perform specified obligations of another party (the principal) in the event that the principal fails to satisfy the debts or obligations. Specifically, to satisfy the decommissioning regulations, an applicant’s or licensee’s parent corporation guarantees providing specified dollar amounts to fund performance of decommissioning in the event of the licensee’s default. A parent company guarantee can only be used if the parent company passes a financial test. (See Appendix A to 10 CFR Part 30.) prepayment—The deposit preceding the start of operation, or the transfer of a license pursuant to 10 CFR 50.80 or 10 CFR 52.105 into an account segregated from licensee assets and outside the administrative control of the licensee and its subsidiaries or affiliates of cash or