ML18040A317

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Fy 2018 Proposed Fee Rule Public Meeting Slides
ML18040A317
Person / Time
Issue date: 02/12/2018
From: Maureen Wylie
NRC/OCFO
To:
Hudson, Sharon
References
Download: ML18040A317 (37)
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Text

FY 2018 Proposed Fee Rule (Public Meeting)

February 12, 2018 1:00 pm

FY 2018 Proposed Fee Rule Maureen E. Wylie Chief Financial Officer 2

PUBLIC MEETING AGENDA

Notice of Meeting on the FY 2018 Proposed Fee Rule February 12, 2018, 1:00 PM to 3:00 PM NRC One White Flint North Commissioners Hearing Room 11555 Rockville Pike Rockville, MD Time Topic Speaker 1:00 PM CFO Opening Remarks Maureen Wylie 1:10 PM Establish Ground Rules for Meeting Luis Betancourt 1:15 PM Key Features of the NRC FY 2018 Budget

Budgetary Considerations Maureen Wylie

Fuel Facilities Craig Erlanger 1:45 PM FY 2018 Proposed Fee Rule Christie Galster 2:00 PM Break 2:10 PM Fees Transformation Renu Suri 2:20 PM Q&A Alison Rivera 2:50 PM Public Comments Submission Luis Betancourt Alison Rivera 2:55 PM CFO Closing Remarks Maureen Wylie 3:00 PM Meeting Adjourned 3

Proposed Fee Rule Basics

  • OBRA-90 requirements

Out of Scope Comments

  • Not focused on methodology
  • Common questions involve:

- Efficiencies

- Changes to regulatory process

  • Use the appropriate venue 5

Ground Rules 6

Budgetary Considerations:

Unique Issues Total budget authority of $967.0 million based on the FY 2018 Congressional Budget Justification with $15.0 million added for the Integrated University Program Total budget authority increases from FY 2017, $49.9 million, due in part to $30.0 from Nuclear Waste Fund For FY 2018, collection target is $826.7 million Congressional direction to use unobligated carryover in FY 2017 7

Budgetary Considerations:

Efficiencies and Workload Changes

  • Project Aim
  • Reactor Safety

- Increases

- Decreases 8

Budgetary Considerations:

FY 2018 Budget, cont.

  • Materials and Waste Safety:

- Increases

- Decreases 9

Agency Support TABLE II. PROFESSIONAL HOURLY RATE CALCULATION

[Dollars in millions, except as noted]

FY 2017 Final Rule FY 2018 Proposed Rule Percentage Change Mission-Direct Program Salaries & Benefits

$340.6

$341.2 0.2 Mission-Indirect Program Support

$137.3

$136.1

-0.9 Agency Support (Corporate Support and the IG)

$309.6

$313.1 1.1 Subtotal

$787.5

$790.3 0.4 Less Offsetting Receipts

-$0.1

$0.0 0.0 Total Budgeted Resources Included in Professional Hourly Rate

$787.4

$790.3 0.4 Mission-Direct FTE (Whole numbers) 1,996 1,938

-3.0 Annual Mission-Direct FTE Productive Hours 1,500 1,510 0.7 Mission-Direct FTE Converted to Hours (Mission-Direct FTE multiplied by Annual Mission-Direct FTE productive Hours) (In Millions) 3.0 2.9

-3.4 Professional Hourly Rate (Total Budgeted Resources Included in Professional Hourly Rate divided by Mission-Direct FTE Converted to Hours) (Whole Numbers)

$263

$270 2.6 10

Steps to Publish the Final Fee Rule

  • Proposed rule based on CBJ, as adjusted
  • Final rule based on the enacted appropriation
  • Currently under CR set to expire March 23, 2018
  • Full year CR
  • Final rule publication may be delayed 11

Budget Overview of the Fuel Facilities Business Line Craig Erlanger Office of Nuclear Material Safety and Safeguards Division of Fuel Cycle Safety, Safeguards, and Environmental Review 12

Fuel Facilities Business Line -

Products

  • Mission Direct Resources:

- Event Response

- International Activities

- Licensing

- Oversight

- Rulemaking

- Training

  • Mission Indirect Resources:

- Mission Support

- Supervisors

- Travel

  • Resources Excluded from Fee Base:

- Generic Homeland Security 13

Fuel Facilities Business Line -

Activities (Fiscal Year 2018 )

Ensure that licensed fuel facilities operate safely and securely, and in accordance with NRCs rules, regulations and license requirements.

Conduct licensing actions and safety and security inspections for the conversion, enrichment, and fabrication facilities and one de-conversion facility in the United States.

Support regulation of other licensees (e.g., universities, test, and research facilities) under Title 10 of the Code of Federal Regulations (CFR) Part 70, Domestic Licensing of Special Nuclear Material.

Continue the license renewal review for one 10 CFR Part 40 facility.

Conclude the license renewal review for one 10 CFR Part 70 facility.

Support the programmatic management of the fuel cycle oversight program by providing and maintaining the infrastructure for inspecting and evaluating fuel facility compliance with regulatory requirements.

Support U.S. non-proliferation activities through implementation of international safeguards and domestic material control and accounting.

Maintain effective communications with stakeholders on staff approaches to emergent issues, rulemaking, guidance development, and other regulatory activities.

14

Fuel Facilities Business Line -

Changing Workload

  • Fuel Facilities Business Line trends:

- Significant increases between FY 2007 and FY 2012.

- Significant decreases between FY 2013 and FY 2018.

129 168 184 165 136 114 100 110 120 130 140 150 160 170 180 190 FY08 EN FY10 EN FY12 EN FY14 EN FY16 EN FY18 CBJ Budgeted FTE Fuel Facilities Business Line - FTE Levels FY2008-FY2018 15

Fuel Facilities Business Line -

FY 2018 Increase

  • Fuel facility budget increased between FY 2017 -

FY 2018 by $1.2M or 3.5 percent, due to:

- A 1 FTE increase in support for fuel facility related enforcement activities.

- An increase in the NRC fully costed FTE rate.

  • Next Steps:

- Continue to evaluate NRC resource requirements.

- Evaluate programmatic efficiencies to reduce resources.

16

Fee-Related Initiatives and Improvements

  • Updates to the Fuel Facilities Fee Matrix:

- Public Meeting Feedback.

- Next Steps.

  • Fuel Facility Regulatory Action Cost Estimates (June 2017)

- www.nrc.gov/docs/ML1726/ML17261B235.pdf 17

FY 2018 PROPOSED FEE RULE OVERVIEW 18

Budget Authority

  • FY 2018 Congressional Budget Justification; $952.0 million
  • Integrated University Program of $15 million included, since it has historically been incorporated by Congress in the final appropriations bill
  • Total BudgetAuthority $967.0 million, an increase of $49.9 million from FY 2017.

19

BUDGET AND FEE RECOVERY AMOUNTS FOR FY 2018 PROPOSED RULE

[Dollars in Millions]

20 Total BudgetAuthority Less NWF,DNFSB, WIR, and Generic Homeland Security (Excluded Items)

Balance Fee Recovery Rate for FY 2018 TotalAmount to be Recovered For FY 2018 967.0 47.6 919.4 x

90.0%

827.5 0.8 Billing Adjustments Adjusted RecoveryAmount Less Estimated Part 170 Billings Part 171 Fee Collections Required 826.7 289.4 537.3

21 Fee Relief

[Dollars in Millions]

Not attributable to existing licensee or class of licensee:

(1) Agreement State Oversight

$12.9

$13.2

$0.3 (2) International Activities 13.8 13.7

-0.1 (3) Scholarships & Fellowships 17.9 15.0

-2.9 (4) Medical Isotopes Production Infrastructure 4.2 2.9

-1.3 Not assessed fees, based on existing law or Commission Policy:

(1) Generic Decommissioning & Reclamation 14.6 14.6 0.0 Activities (Non-reactor)

(2) In Situ Leach Rule and Unregistered General Licensees 1.4 1.5 0.1 (3) Small Entities Subsidy 7.4 7.1

-0.3 (4) Nonprofit Educational Institutions 9.7 8.9

-0.8 (5) Regulatory Support to Agreement States 18.5 17.4

-1.1 (6) Potential DoD remediation program MOU 1.1 1.1 0.0 (7) Non-military Radium Unlicensed sites - NEW 0.0 1.7 1.7 Total activities

$101.5

$97.1

-4.4 Less 10% NRC's Fee Relief Allowance (89.4)

(91.9) 2.5 Fee Relief Adjustment : Surcharge 12.1 5.2

-6.9 Budgeted Resources Budgeted Resources Amount Change

22 Professional Hourly Rate Terminology Mission Direct - resources are allotted to perform core work activities committed to fulfilling the agency's mission Mission Indirect - resources that support the core mission direct activities Agency Support (Corporate Support & IG) - resources which administer the corporate or shared efforts that more broadly support the activities of the agency Offsetting Receipts - collection of Freedom of Information Act (FOIA) services and Indemnity fees, excluded from the 10 CFR Part 170 fee calculation per OMB circular A-25 Productive Hours Assumption - reflects the average number of hours a mission direct employee spends on mission direct work in a given year excluding hours for annual, sick and general administration tasks

Professional Hourly Rate Methodology FY18 Proposed Fee Rule FY 2018 Budget: Professional Hourly Rate Mission Direct Program Salaries & Benefits Mission Indirect Program Support Agency Support: Corporate Support and IG Subtotal:

Less Offsetting Receipts Total Budget

$341.2M 136.1M 313.1M

$790.3M 0.0M

$790.3M Mission Direct FTEs:

Mission Direct FTEs Productive Hours:

Professional Hourly Rate 1,938 FTEs 1,510 Hours

$270 (Total Budget Included in Professional Hourly Rate divided by Mission Direct FTE Converted to Hours )

  • Methodology based on OMB circular A-25 User Charges
    • Budget included in Professional Hourly Rate calculation excludes Direct Program Contract Costs Full Cost FTE Rate = Subtotal divided by Mission Direct FTE $407,810 23

10 CFR 170 Hourly Rate Calculation Budget Resources

= Professional Hourly Rate Mission Direct FTE Hours FY 2018 Proposed Rule

$790,316,509

= $270 hourly rate (1,938 x 1,510)

Direct FTE Productive Hours Productive Hours = 2087 minus General Admin -

Holidays -

Vacation -

24

10 CFR 170 Fee Estimate Acceleration of Rule Publication

  • Develop estimates by License Fee Class

- Use Billing data from 4 quarters

- Includes Hourly Rate Charges and Contract Work

- Adjust for changes in workload projections

- Adjust for change in Professional Hourly Rate

  • Proposed Rule estimates 4 Quarters of Fees Collected

- Invoice data: 4 quarters of prior year

  • Final Rule estimates 2 Quarter of Fees Collected

- Invoice data: 2 quarters of prior year & 2 quarters of current year 25

Budget Allocation For Fees Business Line License Fee Class Operating Reactors Power Reactors, Test and Research Reactors, Import/Export New Reactors Power Reactors Fuel Facilities Fuel Facilities Nuclear Materials Users Materials Users, Import/Export Spent Fuel Storage and Transportation Spent Fuel Storage/Reactor Decommissioning, Transportation Decommissioning and Low-level Waste Spent Fuel Storage/Reactor Decommissioning, Uranium Recovery CROSSWALK OF BUSINESS LINES ALLOCATION TO FEE CLASSES*

Reconciling Items Budget resources excluded from fee calculations (non-fee)

Mission Indirect Program Support resources Business Line resources allocated to other fee classes/fee relief categories Budget resources allocated from other Business Lines Utilization of a full costed FTE rate

  • Delineates where the Majority portion of a Business Lines direct resources are allocated for a fee class.

26

Part 171 Calculation example:

Power Reactor Fee Class

[Dollars in Millions]

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018P Step 1 Budget Resources:

$799.3

$762.1

$750.4

$670.3

$693.0 Step 2 Deduct Part 170 Est. Billings:

(290.9)

(284.1)

(287.8)

($256.3)

($247.1)

Step 3 Adjustments/

Recovery Amount:

499.9 475.9 465.9 426.5 451.3 Operating Reactors 100 99 100 99 99 Annual Fee per Reactor

$4,999,000

$4,807,000

$4,659,000

$4,308,000

$4,559,000 27

Part 171 Calculation example:

Fuel Facilities Fee Class

[Dollars in Millions]

FY 2014 FY 2015 FY 2016 FY 2017*

FY 2018P Step 1 Budget Resources:

$47.2

$42.8

$40.5

$33.9

$35.1 Step 2 Deduct Part 170 Est. Billings:

(16.7)

(11.5)

(11.7)

(9.6)

(9.3)

Step 3 Adjustments/

Recovery Amount:

29.5 33.9 31.6 28.4 29.2 No. of Licensees 10 9

9 9

7 Average Change 2.6%

18.1%

-6.1%

-6.9%

6.5%

  • Centrus Energy Lead Cascade was a licensee during FY17Q1 28

Part 171 Calculation example:

Spent Fuel Storage/Reactor Decom.

Fee Class

[Dollars in Millions]

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018P Step 1 Budget Resources:

$32.8

$32.4

$30.5

$29.5

$34.6 Step 2 Deduct Part 170 Est. Billings:

(5.4)

(6.0)

(7.5)

(7.9)

(8.3)

Step 3 Adjustments/

Recovery Amount:

27.5 27.3 24.0 23.0 27.4 Number of Licensees 123 122 122 122 122 Annual Fee

$224,000

$223,000

$197,000

$188,000

$225,000 29

Part 171 Calculation example:

Uranium Recovery Fee Class

[Dollars in Millions]

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018P Step 1 Budgetary Resources:

$10.86

$11.26

$12.32

$14.26

$13.50 Step 2 Deduct Part 170 Est. Billings:

(9.53)

(10.13)

(11.41)

(13.52)

(13.01)

Step 3 Adjustments/Recovery Amount:

1.18 1.06 0.91 0.99 0.56 Dept. of Energy: UMTRCA program 0.82 0.67 0.54 0.62 0.19 Remaining licensees 0.36 0.39 0.37 0.37 0.37 1.18 1.06 0.91 0.99 0.56 Percentage Change for Remaining UR licensees

+21%

+7%

+8%

0%

0%

30

Part 171 Materials Users Fee Class Update Policy Change: Expansion of Fee Subcategories Includes: 3A, 3B, 3C, 3O, 3P, 7A & 7B Annual Fee Recovery Amount decreased by approx. $1.2M 32 categories decreased/unchanged in annual fees ranging from 0-21%

31

Break 32

Fees Transformation

  • Background
  • Process Improvements Completed In FY 2017 www.nrc.gov/about-nrc/regulatory/licensing/fees-transformation-accomplishments.html
  • Improvements To Be Implemented In FY 2018
  • Major Improvements To Be Implemented In The Future 33

Q&A 34

Public Comments Submission

  • The deadline for submitting comments for this rulemaking is February 26, 2018.
  • ADDRESSES: You may submit comments by any of the following methods (unless this document describes a different method for submitting comments on a specific subject):
  • Federal Rulemaking Web Site: Go to http://www.regulations.gov and search for Docket ID NRC-2017-0026. Address questions about NRC dockets to Carol Gallagher; telephone: 301-415-3463; e-mail: Carol.Gallagher@nrc.gov. For technical questions contact the individual listed in the FOR FURTHER INFORMATION CONTACT section of this document.
  • E-mail comments to: Rulemaking.Comments@nrc.gov. If you do not receive an automatic e-mail reply confirming receipt, then contact us at 301-415-1677.
  • Fax comments to: Secretary, U.S. Nuclear Regulatory Commission at 301-415-1101.

35

Public Comments Submission, cont.

  • Mail comments to: Secretary, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, ATTN: Rulemakings and Adjudications Staff.
  • Hand deliver comments to: 11555 Rockville Pike, Rockville, Maryland 20852, between 7:30 a.m. and 4:15 p.m. (Eastern Time) Federal workdays; telephone: 301-415-1677.
  • For additional direction on obtaining information and submitting comments, see Obtaining Information and Submitting Comments in the SUPPLEMENTARY INFORMATION section of this document.
  • FOR FURTHER INFORMATION CONTACT: Brian Harris, Acting Team Lead, Office of the Chief Financial Officer, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, telephone: 301-287-9120, e-mail: Brian.Harris@nrc.gov.

36

Contacts

  • Maureen Wylie, Chief Financial Officer, Maureen.Wylie@nrc.gov, 301-415-7322
  • Craig Erlanger, Director of the Division of Fuel Cycle Safety, Safeguards and Environmental Review, NMSS, Craig.Erlanger@nrc.gov, 301-415-9954
  • Christie Galster, Senior Accountant, License Fee Policy Team, Christine.Galster@nrc.gov, 301-415-0662
  • Renu Suri, Fees Transformation Project Manager, License Fee Policy
Team, Renu.Suri@nrc.gov, 301-415-0161 37
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