(b) Each applicant for a license, renewal thereof or amendment thereto, authorizing the possession and use of radioactive material of half-life greater than 120 days and in quantities specified in subdivision (c) of this section shall either:

1. (1) submit a decommissioning funding plan as described in subdivision (d) of this section; or

2. (2) submit a certification that financial assurance for decommissioning has been provided in the amount prescribed by subdivision (c) of this section using one of the methods described in subdivision (e) of this section. In the case of an applicant for a license, this certification may state that the appropriate assurance will be obtained after the application has been approved and the license issued but prior to the receipt of licensed material. As part of the certification, a copy of the financial instrument obtained to satisfy the requirements of subdivision (e) of this section is to be submitted to the commissioner.

   (c) Table of required amounts of financial assurance for decommissioning by quantity of material.

3. (1) Greater than 10,000 but less than or equal to 100,000 times the applicable quantities set forth in Table 4 of this Part (rule) in unsealed form (for a combination of isotopes, if R, as defined in subdivision (a) of this section, divided by 10,000, is greater than 1, but R divided by 100,000 is less than or equal to 1): $750,000.
4. (2) Greater than 1,000 but less than or equal to 10,000 times the applicable quantities set forth in Table 4 of this Part (rule) in unsealed form (for a combination of isotopes, if R, as defined in subdivision (a) of this section, divided by 1,000, is greater than 1 but R divided by 10,000 is less than or equal to 1): $150,000.
5. (3) Greater than 10,000,000,000 times the applicable quantities set forth in Table 4 of this Part (rule) in sealed sources or plated foils (for a combination of isotopes, if R, as defined in subdivision (a) of this section, divided by 10,000,000,000, is greater than 1): $75,000.

(e) Financial assurance for decommissioning must be provided by one or more of the following methods:

1. (1) Prepayment. Prepayment is the deposit prior to the start of operation into an account segregated from licensee assets and outside the licensee's administrative control of cash or liquid assets such that the amount of funds would be sufficient to pay decommissioning costs. Prepayment may be in the form of a trust, escrow account, government fund, certificate of deposit, or deposit of government securities.

2. (2) A surety method, insurance, or other guarantee method. These methods guarantee that decommissioning costs will be paid should the licensee default. A surety method may be in the form of a surety bond, letter of credit, or line of credit. A parent company guarantee of funds for decommissioning costs based on a financial test may be used if the guarantee and test are as contained in Appendix C-2 of this Part (rule). A parent company guarantee may not be used in combination with other financial methods to satisfy the requirements of this section. Any surety method or insurance used to provide financial assurance for decommissioning must contain the following conditions:

   1. (i) The surety method or insurance must be open-ended or, if written for a specified term, such as five years, must be renewed automatically unless 90 days or more prior to the renewal date, the issuer notifies the commissioner, the beneficiary, and the licensee of its intention not to renew. The surety method or insurance must also provide that the full face amount be paid to the beneficiary automatically prior to the expiration without proof of forfeiture if the licensee fails to provide a replacement acceptable to the commissioner within 30 days after receipt of notification of cancellation.
   2. (ii) The surety method or insurance must be payable to a trust established for decommissioning costs. The trustee and trust must be acceptable to the commissioner.
   3. (iii) The surety method or insurance must remain in effect until the commissioner has terminated the license.
3. (3) An external sinking fund in which deposits are made at least annually, coupled with a surety method or insurance, the value of which may decrease by the amount being accumulated in the sinking fund. An external sinking fund is a fund established and maintained by setting aside funds periodically in an account segregated from licensee assets and outside the licensee's administrative control in which the total amount of funds would be sufficient to pay decommissioning costs at the time termination of operation is expected. An external sinking fund may be in the form of a trust, escrow account, government fund, certificate of deposit, or deposit of government securities. The surety or insurance provisions must be as stated in paragraph (2) of this subdivision.
4. (4) In the case of State or local government licensees, a statement of intent containing a cost estimate for decommissioning or an amount based on the Table in subdivision (c) of this section, and indicating that funds for decommissioning will be obtained when necessary.