Industry to save $millions in financial guarantees
ACEC and CCIL kill expensive CNSC proposal
Consulting engineering and testing companies that own nuclear densometers will not have to put aside tens of thousands of dollars in financial guarantees as a result of lobbying from ACEC and the Canadian Council of Independent Laboratories (CCIL).
The Canadian Nuclear Safety Commission (CNSC) has withdrawn its proposal to have all licensees post a financial guarantee or bond in the amount of $10,000 plus an additional $3,000 for EACH nuclear densometer owned by the licensee. It is estimated that this proposal would have tied up over $14 million dollars across the industry. Instead, CNSC will now implement a more realistic risk-based insurance model with an annual premium of approximately $13 per densometer. If you are currently a license holder, CNSC will be in contact with you directly regarding your premiums.
The original intent of the financial guarantees was to protect taxpayers from incurring the cost of CNSC securing and disposing of abandoned nuclear densometers in the unlikely event a firm were to go out of business or otherwise close its doors. In 2011, CNSC presented its plan to have licensees of nuclear devices, including ACEC members who operate portable nuclear densometers for compaction testing, provide CNSC with a financial guarantee in the event that CNSC had to become involved in the disposal of the nuclear device and cleanup of the storage facility.
When CCIL learned of the intentions of CNSC, it requested ACEC’s support to oppose the proposal. CCIL and ACEC, on behalf of their respective members (and in some cases their mutual members), were able to convince CNSC that such a large financial commitment was disproportionate to the perceived risk and commercially unrealistic. CNSC agreed to delay the implementation and undertake an appropriate risk analysis. Consequently, CNSC reconsidered its initial plan for financial guarantees from its licensees. CNSC will now obtain its own insurance to cover its risk and back charge the licensees for the cost of the premium. This new plan from CNSC is a vast improvement over its initial proposal.
ACEC is grateful for the effective collaboration and support from CCIL on this important issue. ACEC also applauds CNSC for its consideration of industry concerns and pragmatic resolution to the issue.
Impact of change to CNSC proposal
Example of potential savings for ACEC members
The originally proposed financial guarantees would have been nearly 1000x
the annual premiums CNSC ultimately agreed to.
For additional information, please visit the CNSC website.
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