Arizona § 30-693 - Financial qualifications; exemptions; financial security; release

§ 30-693. Financial qualifications; exemptions; financial security; release

A. Each licensee, as a condition of its license, shall:

1. Arrange for and pay all of the costs of management, control, stabilization and disposal of the licensed activity and tailings and for decommissioning the licensed activity.

2. On the termination of all licensed activities, convey to this state all right, title and interest held by the licensee to the lands, buildings and grounds designated as sites for the concentration and permanent storage or disposal of radioactive waste materials resulting from the licensed activity pursuant to section 30-672, together with requisite rights of ingress and egress, and all rights, title and interest in, of and to all radioactive waste materials situated on such properties or, at the election of the licensee, to otherwise make safe or dispose of any radioactive waste materials in its possession on the termination of all licensed activities in accordance with the rules of the department.

B. Each applicant for a license or any renewal of a license shall demonstrate and the department, before issuing any license or renewal of a license, shall find that the applicant is financially qualified to conduct the licensed activity, including any required decommissioning and disposal of radioactive material. The licensee shall submit to the department current proof of its financial qualifications at such intervals as the department shall by rule or license require.

C. Each licensee shall post financial security acceptable to the department to ensure performance by the licensee of its obligations under this article and to provide funds to this state if the licensee abandons, defaults or is otherwise unable to meet any requirements of this chapter or rules of the department. Such acceptable financial security may include one or more of the following:

1. A bond executed by a surety company or companies authorized to do business in this state that is not terminable during the term of the license.

2. A letter of credit issued by a financial institution authorized to do business in this state.

3. A cash bond.

4. The guarantee of a licensee whose financial qualifications meet the requirements of the department or who furnishes collateral satisfactory to the department in the form of a suitable guarantee by any person, if the person has financial qualifications that meet the requirements of the commission.

D. The department shall determine the amount of the financial security in accordance with criteria established by rule, including:

1. Consideration of the need for and scope of any decommissioning or other activity reasonably required to protect the health and safety of the public.

2. Reasonable estimates of the costs of such decommissioning as provided in section 30-695, subsection B.

3. The net worth of the sum required for the perpetual maintenance and surveillance of any radioactive waste materials resulting from the licensed activity.

E. The licensee shall pay all sums required to be paid under this section into the radiation regulatory and perpetual care fund. The department shall ensure that all amounts posted, paid or forfeited as financial security under this section are paid into the radiation regulatory and perpetual care fund.

F. On the satisfaction by a licensee of all of its obligations under subsection A of this section, the department shall release the financial security furnished under this section.

G. The department shall deposit all monies received by the department as a result of any forfeiture or enforcement of any financial security furnished pursuant to this section in the radiation regulatory and perpetual care fund.