Part 50 section 3 final supporting statement

FINAL SUPPORTING STATEMENT FOR
10 CFR PART 50
DECOMMISSIONING
SECTION 3
50.33(k), 50.75, & 50.82, Decommissioning
3150-0011
ABSTRACT
Before a nuclear power plant begins operations, the licensee must establish or obtain a financial
mechanism - such as a trust fund or a guarantee from its parent company - to ensure there will be
sufficient money to pay for the ultimate decommissioning of the facility.
Each nuclear power plant licensee must report to the NRC at least once every two years on the
status of its decommissioning funding for each reactor or share of a reactor that it owns. The report
must estimate the minimum amount needed for decommissioning by using the formulas found in
NRC regulations. Licensees may alternatively determine a site-specific funding estimate, provided
that amount is greater than the generic decommissioning estimate. The staff performs an
independent analysis of each of these reports to determine whether licensees are providing
reasonable “decommissioning funding assurance” for radiological decommissioning of the reactor
at the permanent termination of operation. These reports are required annually during
decommissioning so the NRC can ensure the funds are being used appropriately.
These regulations affect 89 licensees for operating nuclear power plants, 31 non-power production
and utilization facilities, 15 combined operating license holders/applicants and 29 power plants that
are currently being decommissioned. Licensees may voluntarily submit a request for an exemption
to the Commission and maintain a record of that request. Licensees must perform certain tasks,
maintain records and prepare reports to demonstrate their fulfillment of regulatory requirements.
The reporting and recordkeeping requirements pertain to the amount of decommissioning funds
estimated to be required pursuant to 10 CFR 50.75(b) and 10 CFR 50.75(c); the amount of
decommissioning funds accumulated by the end of the calendar-year preceding the date of the
report; a schedule of the annual amounts remaining to be collected; the assumptions used
regarding rates of escalation in decommissioning costs; any contracts upon which the licensee is
relying and any material changes to trust agreements.
A.

JUSTIFICATION

1.

Need for the Collection of Information
The information is needed in order to determine licensee compliance with the
regulations set forth in 50.33(k), 50.75, & 50.82. Details of these regulations can be
found at the end of this supporting statement in “Description of Requirements.”

2.

Agency Use and Practical Utility of Information
Applicants or licensees requesting approval to construct or operate utilization or
production facilities are required by the Atomic Energy Act of 1954, as amended (the
Act), to provide information and data that the NRC may determine necessary to
ensure the health and safety of the public.
The NRC uses the records and reports required in this part to ascertain that licensees’
licensing the design, construction, operation, and decommissioning of commercial
nuclear power plants and other nuclear facilities programs are adequate to protect
public health and minimize danger to life and property and that licensees’ personnel
are aware of and follow up on the information and steps needed to perform licensed
activities in a safe manner. The reports and recordkeeping requirements allow NRC to
determine whether to take actions, such as to conduct inspections or to alert other
licensees to prevent similar events that may have generic implications.

3.

Reduction of Burden Through Information Technology
There are no legal obstacles to reducing the burden associated with this information
collection. The NRC encourages respondents to use information technology when it
would be beneficial to them. The NRC has issued Guidance for Electronic
Submissions to the NRC which provides direction for the electronic transmission and
submittal of documents to the NRC. Electronic transmission and submittal of
documents can be accomplished via the following avenues: the Electronic Information
Exchange (EIE) process, which is available from the NRC's “Electronic Submittals”
Web page, by Optical Storage Media (OSM) (e.g. CD-ROM, DVD), by facsimile or by
e-mail. It is estimated that approximately 25% of the responses are filed electronically.

4.

Effort to Identify Duplication and Use Similar Information
No sources of similar information are available. There is no duplication of
requirements.

5.

Effort to Reduce Small Business Burden
Not applicable.

6.

Consequences to Federal Program or Policy Activities if the Collection is Not
Conducted or is Conducted Less Frequently
The conduct of decommissioning activities and the collection of information concerning
them at the required frequency is essential to provide the assurance of protection for
the health and safety of the workers and the public.

7.

Circumstances Which Justify Variation from OMB Guidelines
None.

8.

Consultations Outside the NRC
Opportunity for public comment on the information collection requirements for this
clearance package was published in the Federal Register on February 19, 2021,
(86 FR 10360). Additionally, NRC staff contacted five stakeholders via email. The
stakeholders were new, operating and research and test reactor owner licensee
representatives and interested stakeholders from Duke Energy Progress, LLC, Kairos
Power, Southern Nuclear Operating Co., Washington State University and X-Energy.
The NRC received one out-of-scope comment as a result of the FRN. No additional
responses or comments were received as a result of the FRN or the staff’s direct
solicitation of comment.

9.

Payment or Gift to Respondents
Not applicable.

10.

Confidentiality of Information
Confidential and proprietary information is protected in accordance with NRC
regulations at 10 CFR 9.17(a) and 10 CFR 2.390(b).

11.

Justification for Sensitive Questions
This regulation does not request sensitive information.

12.

Estimated Industry Burden and Burden Hour Cost
The total estimated cost for information collection requirements in this section is
estimated to be 14,922 hours at a cost of $4,163,238 (14,922 hours x $279/hr).

Total Burden and Responses Section 3
Hours
Responses
Reporting
4045
95
Recordkeeping
10,877
149
Third Party Disclosure
0
0
TOTAL
14,922
244
Detailed burden estimates are included in the supplemental burden spreadsheet titled,
“Table 1 - Summary of Supporting Statements.” The $279 hourly rate used in the
burden estimates is based on the Nuclear Regulatory Commission’s fee for hourly rates
as noted in 10 CFR 170.20 “Average cost per professional staff-hour.” For more
information on the basis of this rate, see the Revision of Fee Schedules; Fee Recovery
for Fiscal Year 2020 (85 FR 37250, June 19, 2020).

13.

Estimate of Other Additional Costs
The quantity of records to be maintained is roughly proportional to the recordkeeping
burden and therefore can be used to calculate approximate records storage costs.
Based on the number of pages maintained for a typical clearance, the records storage
cost has been determined to be equal to .0004 times the recordkeeping burden cost.
Therefore, the storage cost for this clearance is estimated to be $1,214 (10,877
recordkeeping hours x $279 x .0004).

14.

Estimated Annualized Cost to the Federal Government
The staff has developed estimates of annualized costs to the Federal Government
related to the conduct of this collection of information. These estimates are based on
staff experience and subject matter expertise and include the burden needed to
review, analyze, and process the collected information and any relevant operational
expenses.
The annualized estimated cost to the government is $425,754 (1,526 staff hours x
$279) as shown on the attached Summary Table.

15.

Reasons for Changes in Burden or Cost
The burden and number of responses have changed as described in the tables below:
Burden change
Reporting
Recordkeeping
Third Party
Disclosure
Total

2018 estimates
4,095
9,490
.0

Current submission Change
4,045
-50
10,877
+1,387
0

13,585 14,922

+1,337

Change in Responses
Reporting
Recordkeeping
Third Party
Disclosure
Total

2018 estimates
Current submission Change
105 95
-10
130 149
+19
235 244

+9

Burden increases occurred in the areas of 10 CFR 50.75, recordkeeping for
decommissioning planning, these regulations require recordkeeping by the operating
reactor licensee when not seeking to renew their operating licensee. Any licensee for
a plant that is within 5 years of the projected permanent termination of its operation, or
where conditions have changed such that it has or will close within 5 years (before the
end of its licensed life), or for plants involved in mergers or acquisitions shall submit
this report annually. In the current clearance period, this is estimated to be 149
recordkeepers, up from 130 in the last clearance period.

16.

Publication for Statistical Use
The information being collected is not expected to be published for statistical use.

17.

Reason for Not Displaying the Expiration Date
The recordkeeping and reporting requirements for this information collection are
associated with regulations and are not submitted on instruments such as forms or
surveys. For this reason, there are no data instruments on which to display an OMB
expiration date. Further, amending the regulatory text of the CFR to display
information that, in an annual publication, could become obsolete would be unduly
burdensome and too difficult to keep current.

18.

Exceptions to the Certification Statement
None.

B.

COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS
Not applicable.

Appendix A – Description Requirements
Decommissioning
10 CFR 50.33 Contents of applications; general information.
10 CFR 50.33(k)(1) requires that an application for an operating license include information
on how reasonable assurance will be provided that funds will be available to decommission
the facility.
10 CFR 50.33(k)(2) required holders of operating licenses to provide the above information
by July 26, 1990. This information has been supplied.
10 CFR 50.75 Reporting and recordkeeping for decommissioning planning.
10 CFR 50.75 establishes detailed information on what the NRC will accept as reasonable
assurance that decommissioning funds will be available for the decommissioning process.
10 CFR 50.75(b) requires each power reactor applicant for, or holder of, an operating
license, and each applicant for a combined license under Subpart C of 10 CFR Part 52, to
submit a decommissioning report, as required by 10 CFR 50.33(k)(1), containing a cost
estimate for decommissioning and a certification that financial assurance for
decommissioning will be provided and adjusted annually. As part of the certification, a
copy of the financial instrument must be submitted to NRC.
10 CFR 50.75(d)(1) requires each research and test reactors applicant for, or holder of, an
operating license to submit a decommissioning report as required by 10 CFR 50.33(k)(1)(ii)
and (iii) containing a cost estimate for decommissioning, an indication of the method(s) to
be used to provide decommissioning funds, and a description of the means of adjusting the
cost estimate over the life of the facility.
10 CFR 50.75(e) specifies that a trust to ensure funds are available for decommissioning
must be an external trust fund held in the United States, established under a written
agreement and with an entity that is a State or Federal government agency or an entity
whose operations are regulated by a State or Federal agency.
10 CFR 50.75(e)(1)(i) requires that the trust, escrow account, government fund, or other
type of agreement shall be established in writing and maintained at all times in the United
States with an entity that is an appropriate State or government agency or an entity whose
operations in which the prepayment deposit is managed or regulated and examined by a
Federal or State agency.
10 CFR 50.75(e)(1)(ii) requires the trust, escrow account, government fund, or other type of
agreement shall be established in writing and maintained at all times in the United States
with an entity that is an appropriate State or Federal governmental agency, or an entity
whose operations in which the external sinking fund is managed and examined by a
Federal or State agency.

10 CFR 50.75(f)(1) requires that each power reactor licensee shall report, on a calendaryear basis, to the NRC by March 31, 1999, and at least once every 2 years thereafter on
the status of its decommissioning funding for each reactor or part of a reactor that it owns.
The information in this report must include, at a minimum: the amount of decommissioning
funds estimated to be required pursuant to 10 CFR 50.75(b) and (c); the amount
accumulated to the end of the calendar year preceding the date of the report; a schedule of
the annual amounts remaining to be collected; the assumptions used regarding rates of
escalation in decommissioning costs, rates of earnings on decommissioning funds, and
rates of other factors used in funding projections; any contracts upon which the licensee is
relying; any modifications occurring to a licensee's current method of providing financial
assurance since the last submitted report; and any material changes to trust agreements.
Any licensee for a plant that is within 5 years of the projected permanent termination of its
operation, or where conditions have changed such that it has or will close within 5 years
(before the end of its licensed life), or for plants involved in mergers or acquisitions shall
submit this report annually.
10 CFR 50.75(f)(3) requires that each power reactor licensee submit, at or about 5 years
prior to the projected permanent termination of operations, a preliminary decommissioning
cost estimate which includes an up-to-date assessment of the major factors that could
affect the cost to decommission.
10 CFR 50.75(f)(4) requires that each research and test reactor licensee submit, at or
about 2 years prior to the projected end of operations, a preliminary decommissioning plan
containing a cost estimate for decommissioning and an up-to-date assessment of the major
factors that could affect planning for decommissioning.
10 CFR 50.75(f)(5) requires, if necessary, the cost estimate for power and research and
test reactors to include plans for adjusting funding levels to demonstrate that a reasonable
level of assurance will be provided that funds will be available when needed to cover the
cost of decommissioning.
10 CFR 50.75(g) requires each licensee to keep records of information important to safe
and effective decommissioning until the license is terminated (by the NRC); (g)(1) this
information consists of records of spills; (g)(2) as-built drawings and modifications of
structures and equipment in restricted areas where radioactive materials are used or
stored, and of locations of possible inaccessible contamination; (g)(3) records of the cost
estimate performed for the decommissioning funding plan or of the amount certified for
decommissioning; and of the funding method used.
10 CFR 50.75(h)(1), requires licensees that are not “electric utilities” as defined in 10 CFR
50.2 that use prepayment or an external sinking fund to provide financial assurance to
include in the terms of the arrangements governing the trust, escrow account, or
government fund, used to segregate and manage the funds, the following:
10 CFR 50.75(h)(1)(i) requires the trustee, manager, investment advisor, or other person
directing investment of the funds: (A) is prohibited from investing the funds in securities or
other obligations of the licensee or any other owner or operator of the power reactor of their
affiliates, subsidiaries, successors or assigns or in a mutual fund in which at least 50
percent of the fund is invested in the securities of a licensee or parent company whose
subsidiary is an owner of a foreign or domestic nuclear power plant. However, the funds

may be invested in securities tied to market indices or other non-nuclear sector collective,
commingled, or mutual funds, provided that this subsection shall not operate in such a way
as to require the sale or transfer either in whole or in part, or other disposition of any such
prohibited investment that was made before December 24, 2002, provided further that
these restrictions do not apply to 10 percent or less of their trust assets in securities of any
other entity owning one or more nuclear power plants.
10 CFR 50.75(h)(1)(ii) requires that the licensee, its affiliates, and its subsidiaries are prohibited
from being engaged as investment manager for the funds or from giving day-to-day management
direction of the funds’ investments or direction on individual investments by the funds, except in
the case of passive fund management of trust funds where management is limited to
investments tracking market indices.
10 CFR 50.75(h)(1)(iii) requires the trust, escrow account, government fund, or other
account used to segregate and manage the funds may not be amended in any material
respect without written notification to the NRC Director, Office of Nuclear Reactor
Regulation (NRR), or the NRC Director, Office of Nuclear Material Safety and Safeguards
(NMSS), as applicable, at least 30 working days before the proposed effective date of the
amendment. The licensee shall provide the text of the proposed amendment and a
statement of the reason for the proposed amendment. The trust, escrow account,
government fund, or other account may not be amended if the person responsible for
managing the trust, escrow account, government fund, or other account receives written
notice of objection from the Director, NRR, or the Director, NMSS, as applicable, within the
notice period.
10 CFR 50.75(h)(1)(iv) requires that, except for withdrawals being made under
10 CFR 50.82(a)(8), no disbursement or payment may be made from the trust, escrow
account, government fund, or other account used to segregate and manage the funds until
written notice of the intention to make a disbursement or payment has been given to the
Director, NRR, or the Director, NMSS, as applicable, at least 30 working days before the date
of the intended disbursement or payment. The disbursement or payment from the trust,
escrow account, Government fund or other account may be made following the 30-working
day notice period if the person responsible for managing the trust, account, or Government
fund, does not receive written notice of objection from the Director, NRR, or the Director,
NMSS, as applicable, within the notice period. Disbursements or payments from the trust,
escrow account, government fund, or other account used to segregate and manage the
funds, other than for payment of ordinary administrative costs (including taxes) and other
incidental expenses of the fund (including legal, accounting, actuarial, and trustee expenses)
in connection with the operation of the fund, are restricted to decommissioning expenses or
transfer to another financial assurance method acceptable under paragraph (e) of this section
until final decommissioning has been completed. After decommissioning has begun and
withdrawals from the decommissioning fund are made under 10 CFR 50.82(a)(8), no further
notification need be made to the NRC.
10 CFR 50.75(h)(2) requires licensees that are "electric utilities" under 10 CFR 50.2 that
use prepayment or an external sinking fund to provide financial assurance shall provide in
the terms of the trust, escrow account, government fund, or other account used to
segregate and manage funds that, except for withdrawals being made under 10 CFR
50.82(a)(8), no disbursement or payment may be made from the trust, escrow account,
government fund, or other account used to segregate and manage the funds until written

notice of the intention to make a disbursement or payment has been given the Director,
NRR, or the Director, NMSS, as applicable, at least 30 working days before the date of the
intended disbursement or payment. The disbursement or payment from the trust, escrow
account, government fund or other account may be made following the 30-working day
notice period if the person responsible for managing the trust, escrow account, government
fund, or other account does not receive written notice of objection from the Director, NRR
or the Director, NMSS, as applicable, within the notice period. Disbursements or payments
from the trust, escrow account, government fund, or other account used to segregate and
manage the funds, other than for payment of ordinary administrative costs and other
incidental expenses of the fund in connection with the operation of the fund, are restricted
to decommissioning expenses or transfer to another financial assurance method
acceptable under paragraph (e) of this section until final decommissioning has been
completed. After decommissioning has begun and withdrawals from the decommissioning
fund are made under 10 CFR 50.82(a)(8), no further notification need be made to the NRC.
10 CFR 50.75(h)(3) requires that a licensee that is not an "electric utility" under 10 CFR
50.2 and using a surety method, insurance, or other guarantee method to provide financial
assurance shall provide that the trust established for decommissioning costs to which the
surety or insurance is payable contains in its terms the requirements in paragraphs 10 CFR
50(h)(1)(i), (ii), (iii), and (iv) of this section.
10 CFR 50.80 Transfer of licenses.
10 CFR 50.80(b), transfer of licenses, shall include as much of the information described in
10 CFR 50.33 and 10 CFR 50.34 with respect to the identity and technical and financial
qualifications of the proposed transferee as would be required by those sections if the
application were for an initial license. This would include information on decommissioning
funding.
10 CFR 50.82 Termination of license.
10 CFR 50.82 defines the decommissioning process and information collection
requirements for power and research and test reactors. Specifically:
10 CFR 50.82(a)(1)(i) and (ii) requires that a power reactor licensee submit written
certification to the NRC within 30 days after determination to permanently cease operation,
in accordance with 10 CFR 50.4(b)(8), and to submit a subsequent written certification
once fuel has been permanently removed from the reactor vessel, in accordance with 10
CFR 50.4(b)(9).
10 CFR 50.82(a)(4)(i) requires that a power reactor licensee submit prior to, or within 2
years following permanent cessation of operations, a post-shutdown decommissioning
activities report (PSDAR). The PSDAR is sent to the NRC with a copy to the affected
State(s) and provides a description of the planned decommissioning activities along with
a schedule for their accomplishment, an estimate of expected costs, and a discussion of
whether environmental impacts associated with site-specific decommissioning activities
will be bounded by appropriate, previously-issued documents.

10 CFR 50.82(a)(7) requires that a nuclear power licensee notify the NRC in writing, and
send a copy to the affected State(s), before performing any decommissioning activity
inconsistent with, or making any significant schedule change from, those actions and
schedules described in the PSDAR, including changes that significantly increase the
decommissioning cost. This notification is necessary to keep the NRC informed of changes
in the licensee’s planned activities or a significant increase in decommissioning costs.
10 CFR 50.82(a)(8)(ii) requires that a nuclear power licensee submit to the NRC a sitespecific decommissioning cost estimate prior to using any funding in excess of the amounts
specified in this section. This submittal is necessary to ensure that the licensee will have
sufficient funding for future decommissioning actions.
10 CFR 50.82(a)(8)(iii) requires that within 2 years following permanent cessation of
operations, if not already submitted, a nuclear power licensee shall submit a site-specific
decommissioning cost estimate.
10 CFR 50.82(a)(8)(iv) requires licensees to provide a means of adjusting cost estimates
and funding levels during decommissioning delays or periods of plant storage.
10 CFR 50.82(a)(8)(v) requires licensees to annually submit to the NRC, by March 31, a
financial assurance status report. The report must include: (A) The amount spent on
decommissioning, both cumulative and over the previous calendar year, the remaining
balance of any decommissioning funds, and the amount provided by other financial
assurance methods being relied upon; (B) An estimate of the costs to complete
decommissioning, reflecting any difference between actual and estimated costs for work
performed during the year, and the decommissioning criteria upon which the estimate is
based; (C) Any modifications occurring to a licensee’s current method of providing financial
assurance since the last submitted report; and (D) Any material changes to trust
agreements or financial assurance contracts.
10 CFR 50.82(a)(8)(vi) requires that, if the sum of the balance of any remaining
decommissioning funds, plus earnings on such funds calculated at not greater than a 2
percent real rate of return, together with the amount provided by other financial assurance
methods being relied upon, does not cover the estimated cost to complete
decommissioning, the financial assurance status report must include additional financial
assurance to cover the estimated cost of completion.
10 CFR 50.82(a)(8)(vii) requires that after submitting its site-specific decommissioning cost
estimate required by 10 CFR 50(a)(4)(i), the licensee must annually submit to the NRC, by
March 31, a report on the status of its funding for managing irradiated fuel. The report must
include the following information, current through the end of the previous calendar year:
(A) The amount of funds accumulated to cover the cost of managing the irradiated fuel; (B)
The projected cost of managing irradiated fuel until title to the fuel and possession of the
fuel is transferred to the Secretary of Energy; and (C) If the funds accumulated do not cover
the projected cost, a plan to obtain additional funds to cover the cost.
10 CFR 50.82(a)(9) requires that a power reactor licensee submit an application for
termination of license. The application must be accompanied or preceded by a license
termination plan and be submitted at least 2 years before termination of the license.

10 CFR 50.82(a)(9)(ii)(A)-(H) prescribes the content of the license termination plan. Items
(A), (C), and (D) require the licensee to evaluate the site for radiological hazards, perform
suitable decontamination (remediation) activities, and perform a suitable final radiation
survey after site decontamination. Item (B) requires the licensee to identify any residual
dismantlement activity that remains at the time of license termination plan submittal. Item
(E) requires the licensee to identify the end use of the site, if a restricted release is sought
by the licensee. Item (F) requires the licensee to provide an updated site-specific estimate
of remaining decommissioning costs. Item (G) requires the licensee to submit a
supplement to the environmental report that describes any new or significant environmental
change associated with the licensee’s proposed termination activities. Item (H) requires
identification of parts, if any, of the facility site released before approval of the license
termination plan.
10 CFR 50.82(b)(1) requires that a non-power reactor licensee that permanently ceases
operations must make application for license termination within 2 years following permanent
cessation of operations, and in no case later than 1 year prior to expiration of the operating
license. Each application must be accompanied or preceded by a proposed
decommissioning plan. The contents of the decommissioning plan are specified in 10 CFR
50.82(b)(4).
10 CFR 50.82(b)(2) states for decommissioning plans in which the major dismantlement
activities are delayed by first placing the facility in storage, planning for these delayed
activities may be less detailed. Updated detailed plans must be submitted and approved
prior to the start of these activities.
10 CFR 50.82(b)(4) prescribes the content of decommissioning plans for non-power
reactors. This includes (i) the choice of the alternative for decommissioning with a
description of activities involved; (ii) a description of the controls and limits on procedures
and equipment to protect occupational and public health and safety; (iii) a description of the
planned final radiation survey; (iv) an updated cost estimate for the chosen alternative for
decommissioning, comparison of that estimate with present funds set aside for
decommissioning, and plan for assuring the availability of adequate funds for completion of
decommissioning; and (v) a description of technical specifications, quality assurance
provisions and physical security plan provisions in place during decommissioning.