Pennsylvania Code › Title 25 - ENVIRONMENTAL PROTECTION › Part I - Department of Environmental Protection › Subpart D - Environmental Health and Safety › Article V - Radiological Health › Chapter 236 - LOW-LEVEL RADIOACTIVE WASTE MANAGEMENT AND DISPOSAL › Subchapter G - FINANCIAL ASSURANCES AND LIABILITY › Section 236.605 - Funding for site closure and decommissioning

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The applicant shall provide assurances
						prior to the receipt of a license that sufficient funds are available to carry
						out disposal site closure and decommissioning, including decontamination or
						dismantlement of structures. The applicant shall also provide assurances
						regarding closure and stabilization of the disposal site so that following
						transfer of the disposal site to this Commonwealth, the need for ongoing active
						maintenance is eliminated to the extent practicable and only minor custodial
						care, surveillance and monitoring are required. These assurances shall be based
						on cost estimates submitted by the applicant and which reflect the Department
						approved plan for disposal site closure and decommissioning. The applicant's
						cost estimates shall take into account the total costs that would be incurred
						if an independent contractor were hired to perform the closure and
						decommissioning work.
(b) The
						licensee's financial or surety arrangement shall be submitted as part of the
						application, and annually thereafter, for review by the Department to assure
						that sufficient funds will be available for completion of the closure and
						decommissioning plan.
(c) The
						amount of the licensee's financial or surety arrangement shall change in
						accordance with changes in the predicted costs of closure and decommissioning.
						Factors affecting closure and decommissioning cost estimates include inflation,
						increases in the amount of disturbed land, changes in engineering plans,
						closure and stabilization that has already been accomplished, and other
						conditions affecting costs. The financial or surety arrangement shall be
						sufficient to cover the costs of closure and decommissioning of the disposal
						units that are expected to be used before the next 5 year review
						period.
(d) The surety arrangement
						shall be written for a specified period of time, shall name the Department as
						the obligee and shall be automatically renewable unless the surety notifies the
						Department, and the principal-the licensee-at least 90 days prior to the
						renewal date, of its intention not to renew. In this situation, the licensee
						shall submit a replacement surety within 30 days after notification of
						cancellation. If the licensee fails to provide a replacement surety acceptable
						to the Department within 30 days before the cancellation becomes effective, the
						failure constitutes grounds for forfeiture of the surety.
(e) Surety bonds will only be acceptable if
						issued by a surety authorized to do business in this Commonwealth. If the
						principal place of business of a surety is outside of this Commonwealth the
						surety bond shall be signed by an authorized Commonwealth resident agent of the
						surety.
(f) Proof of the licensee's
						failure to replace the surety is not necessary for the Department to exercise
						its right of default. The right of the Department to declare a default because
						of the licensee's failure to replace the surety shall be a condition of the
						obligation.
(g) Financial or surety
						arrangements generally acceptable to the Department include surety bonds, cash
						deposits, certificates of deposit, government securities rated at least BBB by
						Standard and Poor or Baa by Moody's Investor Services, trust accounts,
						irrevocable stand-by letters of credit, trust funds and combinations thereof or
						other types of arrangements that may be approved by the Department.
						Self-insurance, or an arrangement which essentially constitutes self-insurance,
						does not satisfy the financial or surety requirements as they apply to
						private-sector applicants.
(h) The
						licensee's financial or surety arrangement shall remain in effect until the
						closure and decommissioning program has been completed and approved by the
						Department, and the license has been transferred to the Commonwealth Custodial
						Agency.