State of South Carolina

Office of the Governor

Jim Hodges, Governor
Post Office Box 11829
Columbia, SC29211

April 28, 2000

The Honorable Kevin McCarthy,Chairman
Northeast Low-Level Radioactive Waste Compact Commission
703 Hebron Avenue
Glastonbury, CT 06033

Dear Mr. McCarthy:

This letter and the attachment constitute a petition for declaration of the State of South Carolina as an eligible state for membership in the Northeast Interstate Low-Level Radioactive Waste Management Compact, which will also become known as the Atlantic Compact.

As you know, the South Carolina General Assembly is currently considering legislation that would enable the State to join the Compact upon terms and conditions that are mutually agreeable to South Carolina and the current member states. While the legislation has not yet been passed by the General Assembly, I am submitting the membership petition at this time in order to allow the Compact Commission adequate time to consider the petition prior to our targeted membership date of July 1, 2000.

This petition and any subsequent approval of the petition notwithstanding, South Carolina's membership in the Compact remains contingent upon (1) the Compact Commission's declaration that the State of South Carolina is eligible to join the Compact, (2) enactment by South Carolina of the necessary enabling legislation, and (3) certification by the Governor that the Compact Commission has taken specific actions that may be identified in law by the General Assembly as conditions precedent for South Carolina's membership.

I believe that South Carolina's membership in the Atlantic Compact will provide significant benefits to each of the member states and their citizens.

If you have any questions regarding this petition for membership or need additional information, please feel free to contact Jim Stuckey of my staff.

Sincerely,

Jim Hodges

Attachment: Attachment to Petition from the State of South Carolina for Membership in the Atlantic Compact, April 28, 2000

cc: The Honorable John Drummond, President Pro Tempore of the Senate

The Honorable Phil Leventis, Chairman, Senate Agriculture and Natural Resources Committee

The Honorable David H. Wilkins, Speaker of the House of Representatives

The Honorable Charles R. Sharpe, Chairman, House Agriculture, Natural Resources, and Environmental Affairs Committee.

Attachment toPetition from the State of South Carolina

for Membership in the Atlantic Compact April 28, 2000

Consistent with proposed rules of the Northeast Interstate Low-Level Radioactive Waste Management Compact (also known hereafter as the Atlantic Compact), at Title 10, Part 1800.13, Code of the Federal Regulations (65 Federal Register 13702 et seq.), I, Jim Hodges, Governor of South Carolina, hereby attest to the following:

1. Upon the admittance of South Carolina to the Atlantic Compact, South Carolina will become the voluntary host state for a regional disposal facility for low-level radioactive waste. South Carolina will continue to be the voluntary host state until all currently licensed nuclear power stations within the region have been fully decommissioned and their licenses (including any licenses for storage of spent nuclear fuel under 10 CFR part 72) have been terminated, unless otherwise relieved of such responsibilities under any applicable provisions, regulations, orders or policies of the Compact.
2. It is agreed and understood that South Carolina will remain the sole host state for a regional disposal facility, so long as South Carolina remains a member of the Compact.
3. South Carolina warrants that all current information indicates that the regional disposal facility in Barnwell County has adequate capacity to accommodate 800,000 cubic feet of waste from generators located within the borders of the existing Compact states.
4. South Carolina warrants that it will establish a maximum uniform rate schedule for regional generators. The maximum uniform rate schedule, including all surcharges (except new surcharges imposed pursuant to Article V.f.3 of the compact) shall not exceed the approximate rates, excluding any access fees, generally available to regional generators on September 7, 1999. The maximum uniform rate schedule will include a methodology for calculating disposal fees for large components. The rate schedule will be adjusted annually based on the most recent changes in the most nearly applicable Produced Price Index published by the Bureau of Labor Statistics, or a successor index. Any disposal rates contained in a valid written agreement that were applicable to a regional generator on September 7, 1999, that differ from rates in the maximum uniform rate schedule will continue to be honored through the term of such agreement. In addition to the maximum uniform rate schedule, South Carolina may approve special disposal rates for regional waste that are lower than rates in the maximum uniform rates schedule for regional generators. This warranty is different from but effectively equivalent to criterion (d) of the Compact's proposed rules, at 10 CFR 1800.13(d).
5. South Carolina agrees that regional waste generators may, at their discretion, export low-level radioactive waste to treatment, processing, management and disposal facilities located outside the region.
6. South Carolina agrees with the other party states that the Commission may authorize importation of waste from non-regional generators for the purpose of disposal at the Barnwell regional disposal facility only if South Carolina grants approval in accordance with Compact procedures. South Carolina agrees and will take steps necessary to ensure that the importation of waste from outside the region does not jeopardize the availability of 800,000 cubic feet of disposal capacity for the existing Compact states. South Carolina agrees that regional generators shall not pay higher disposal fees than non-regional generators. Any special rates charged for disposal of non-regional waste that are lower than applicable rates for regional waste will be made available to regional generators. Applicable information and data necessary to allow regional generators to verify that they are not paying higher fees than non-regional generators will be made available as described in South Carolina law.
7. In addition to the express limitations on non-host state and compact commission liability provided in the Northeast Interstate Low-Level Radioactive Waste Management Compact, South Carolina will indemnify the Atlantic Compact Commission or any of the other party states for any damages incurred solely because of South Carolina's membership in the Compact and for any damages associated with any injury to persons or property during the institutional control period resulting from the radioactive and waste management operations of the regional facility. South Carolina agrees that this indemnification obligation will survive the termination of its membership in the Compact.
8. Consistent with the schedule provided in draft regulations at 10 CFR Part 1800.13 (65 FR 13702), South Carolina agrees that the initial incentive payment of $12 million will be returned to the existing party states, with interest, on a pro rata basis if, for any reason, the regional disposal facility ceases to be available to generators in the existing party states for a period of more than six months (other than periods that have been expressly approved and authorized by the Commission) or is unavailable for disposal of 800,000 cubic feet of waste from generators within the borders of the existing states.
9. South Carolina agrees with the other party states that once South Carolina has been admitted to the Compact pursuant to 10 CFR Part 1800, the declaration of any other state as an eligible party state will require the unanimous consent of all members of the Commission.

Jim Hodges