A financial guarantee is a tangible commitment by a licensee that there will be sufficient resources to safely terminate licensed activities. When licensees terminate their activities, they must properly account for the safe disposal of all licensed material and equipment, and must demonstrate that all locations associated with the licence are free of radioactive contamination. Failure to properly terminate licensed activities can result in risk to the health and safety of persons and the environment. A financial guarantee does not relieve licensees from complying with regulatory requirements for termination of licensed activities, but ensures there are funds available when licensees are unable to carry out safe termination.
How are financial guarantee requirements calculated?
The following formula is used to calculate financial guarantee requirements for a specific licence. The total financial guarantee requirement is obtained by using the following formula:
# of sealed sources [≥50 MBq] and/or radiation devices (x $3,000)
- + # of rooms in which unsealed nuclear substances [half-life ≥3 days) are handled (x $4,000)
- + # of self-shielded irradiators (x $90,000)
- = Total liability
For example, a licensee with 3 radiation devices (3 x $3,000) and 1 laboratory for handling unsealed sources (1 x $4,000) has a total liability of $13,000.
The annual financial contribution would be $58.50 (0.45% of total calculated liability for safe termination of licensed activities).
Licensed public institutions such as hospitals, universities and government departments must acknowledge their financial liability (calculated from the model formula above) through a signed Applicant Authority Form submitted to the CNSC. Licensed public institutions do not have to set aside any specific funds or financial instrument, or pay an annual financial contribution to the CNSC to meet their financial guarantee obligations. They are supported by federal, provincial or municipal governments, which are expected to assume the cost for safe termination of their licensed activities.
Use our financial guarantee calculator to calculate your liability and contribution
Financial Guarantee Calculator
How can licensees comply with financial guarantee requirements?
Licensees can opt to pay an annual financial contribution (currently estimated at 0.45% of their total calculated liability for safe termination of their licensed activities) to comply with financial guarantee requirements. This contribution will range from $25 to $4,000 per year, according to the formula above.
To pay your annual financial guarantee contribution, visit the financial guarantee web portal. You will need the initial login information provided to you by the CNSC to access the site.
Licensees with complex activities, facilities and equipment that do not fit the formula described can propose an alternative financial guarantee, which the CNSC will evaluate.
Licensees considering alternative financial guarantee instruments should contact the CNSC as early as possible to ensure due consideration and review of the proposed alternative.
To find out more about the new CNSC financial guarantee program:
- Consult the financial guarantees frequently asked questions
- Visit the financial guarantee web portal
- Watch the webcast of the Commission meeting presentation on August 21, 2014
- Learn about financial guarantees for class II facilities and prescribed equipment
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