Code of Maine Rules › 10 - DEPARTMENT OF HEALTH AND HUMAN SERVICES › 144 - DEPARTMENT OF HEALTH AND HUMAN SERVICES - GENERAL › Chapter 220 - Rules Relating to Radiation Protection › Part C - LICENSING OF RADIOACTIVE MATERIAL › Appendix 144-220-C-D - CRITERIA RELATING TO USE OF FINANCIAL TESTS AND SELF GUARANTEES FOR PROVIDING REASONABLE ASSURANCE OF FUNDS FOR DECOMMISSIONING

Current through 2024-29, July 17, 2024
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 the
					 financial test of Section B of this Appendix. The terms of the self-guarantee
					 are in Section C of this Appendix. This Appendix establishes criteria for
					 passing the financial test for the self guarantee and establishes the terms for
					 a self-guarantee.
B. Financial Test
1. To pass the financial test, a company must meet all of
					 the following criteria:
a. 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), or, for a power
					 reactor licensee, at least 10 times the amount of decommissioning funds being
					 assured by a self guarantee, for all decommissioning activities for which the
					 company is responsible as self-guaranteeing licensee and as parent-guarantor
					 for the total of all reactor units or parts thereof (Tangible net worth shall
					 be calculated to exclude the net book value of the nuclear unit(s)).
b. 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 for the total of all facilities or parts thereof
					 (or the current amount required if certification is used), or, for a power
					 reactor licensee, at least 10 times the amount of decommissioning funds being
					 assured by a self guarantee, for all decommissioning activities for which the
					 company is responsible as self-guaranteeing licensee and as parent-guarantor
					 for the total of all reactor units or parts thereof.
c. A current rating for its most recent bond issuance of
					 AAA, AA, or A as issued by Standard and Poors (S&P), or Aaa, Aa, or A as
					 issued by Moody's.
2. To pass the financial test, a company must meet all of
					 the following additional requirements:
a. The company must have at least one class of equity
					 securities registered under the Securities Exchange Act of 1934.
b. The company's independent certified public accountant
					 must have compared the data used by the company in the financial test, which is
					 derived from the independently audited, yearend financial statements for the
					 latest fiscal year, with the amounts in such financial statement. In connection
					 with that procedure, the licensee shall inform the Agency within 90 days of any
					 matters coming to the attention of the auditor 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.
c. After the initial financial test, the company must
					 repeat passage of the test within 90 days after the close of each succeeding
					 fiscal year.
3. If the licensee no longer meets the requirements of
					 Section B.2. of this Appendix, the licensee must send immediate notice to the
					 Agency of its intent to establish alternate financial assurance as specified in
					 the Agency's regulations within 120 days of such notice.
C. Company Self-Guarantee.
The terms of a
					 self-guarantee which an applicant or licensee furnishes must provide that:
1. The guarantee will remain in force unless the licensee
					 sends notice of cancel certified mail to the Agency. Cancellation may not
					 occur, however, during the 120 days beginning on the date of receipt of the
					 notice of cancellation by the Agency, as evidenced by the return receipt.
2. The licensee shall provide alternative financial
					 assurance as specified in the Agency's regulations within 90 days following
					 receipt by the Agency of a notice of cancellation of the guarantee.
3. The guarantee and financial test provisions must remain
					 in effect until the Agency has terminated the license or until another
					 financial assurance method acceptable to the Agency has been put in effect by
					 the licensee.
4. The licensee will promptly forward to the Agency and the
					 licensee's independent auditor all reports covering the latest fiscal year
					 filed by the licensee with the Securities and Exchange Commission pursuant to
					 the requirements of section 13 of the Securities and Exchange Act of 1934.
5. If, at any time, the licensee's most recent bond
					 issuance ceases to be rated in any category of A or above by either Standard
					 and Poor's or Moody's, the licensee will provide notice in writing of such fact
					 to the Agency within 20 days after publication of the change by the rating
					 service. If the licensee's most recent bond issuance ceases to be rated in any
					 category of A or above by both Standard and Poor's and Moody's, the licensee no
					 longer meets the requirements of Section B.1. of this Appendix.
6. The applicant or licensee must provide to the Agency a
					 written guarantee (a written commitment by a corporate officer) which states
					 that the licensee will fund and carry out the required decommissioning
					 activities or, upon issuance of an order by the Agency, the licensee will set
					 up and fund a trust in the amount of the current cost estimates for
					 decommissioning.