An insulating layer formed by deposition is annealed in the presence of radical oxygen to reduce bond defects. A substrate is provided. An oxide layer is deposited overlying the substrate. The oxide layer has a plurality of bond defects. The oxide layer is annealed in the presence of radical oxygen to modify a substantial portion of the plurality of bond defects by using oxygen atoms. The anneal, in one form, is an in-situ steam generation (ISSG) anneal. In one form, the insulating layer overlies a layer of charge storage material, such as nanoclusters, that form a gate structure of a semiconductor storage device. The ISSG anneal repairs bond defects by oxidizing defective silicon bonds in the oxide layer when the oxide layer is silicon dioxide.