ML19044A386

Fiscal Year 2019 Proposed Fee Rule Public Meeting Slides

ML19044A386
Person / Time
Issue date:	02/13/2019
From:	Maureen Wylie NRC/OCFO
To:
Hudson, Sharon
References
Download: ML19044A386 (76)

Text

FY 2019 Proposed Fee Rule Public Meeting February 13, 2019 1:00 pm

Ground Rules 2

FY 2019 Proposed Fee Rule Maureen E. Wylie Chief Financial Officer 3

PUBLIC MEETING AGENDA

Notice of Meeting on the FY 2019 Proposed Fee Rule February 13, 2019, 1:00 PM to 4:00 PM NRC One White Flint North Commissioners Hearing Room 11555 Rockville Pike, Rockville, MD 4

Proposed Fee Rule Basics OBRA-90 requirements 10 CFR Part 170 (fees for service) 10 CFR Part 171 (annual fees)

Nuclear Energy Innovation and Modernization Act (NEIMA) 5

Out of Scope Comments Not focused on methodology Common questions involve:

Efficiencies

Changes to regulatory process Use the appropriate venue 6

Budgetary Considerations:

New Appropriation Our FY 2019 proposed rule is based on the Energy and Water, Legislative Branch, and Military Construction and Veterans Affairs Appropriations Act, 2019, enacted September 21, 2018 New appropriation approximately $911.0 million, a decrease of $11.0 million from FY 2018 Excluded or Non-fee Recoverable amount for FY 2019 is $43.4 million, a slight decrease of $0.4 million from FY 2018 For FY 2019, collection target is $781.9 million Congressional direction to use $20 million of unobligated carryover in FY 2019, $15 million of carryover authorized in FY 2018 7

Professional Hourly Rate TABLE II. PROFESSIONAL HOURLY RATE CALCULATION

[Dollars in millions, except as noted]

FY 2018 Final Rule FY 2019 Proposed Rule Percentage Change Mission-Direct Program Salaries & Benefits

$325.7

$334.7 2.8 Mission-Indirect Program Support

$135.0

$120.6

-10.7 Agency Support (Corporate Support and the Inspector General)

$308.1

$304.5

-1.2 Subtotal

$768.8

$759.8

-1.2 Less Offsetting Receipts

$0.0

$0.0 0.0 Total Budgeted Resources Included in Professional Hourly Rate

$768.8

$759.8

-1.2 Mission-Direct FTE (Whole numbers) 1,851 1,810

-2.2 Annual Mission-Direct FTE Productive Hours (Whole numbers) 1,510 1,510 0.0 Mission-Direct FTE Converted to Hours (Mission-Direct FTE multiplied by Annual Mission-Direct FTE Productive Hours) (Whole numbers) 2,795,010 2,733,100

-2.2 Professional Hourly Rate (Total Budgeted Resources Included in Professional Hourly Rate Divided by Mission-Direct FTE Converted to Hours) (Whole Numbers)

$275

$278 1.1 8

Annual Fee Changes Decreases: Spent Fuel Storage/Reactor Decommissioning, Research & Test Reactors, Fuel Facilities, some Materials Users, and DOE-UMTRCA*

licensees Increases: Operating Power Reactors, some Materials Users, and Dept. of Energy (DOE) Transportation licensees No change: Non-DOE Uranium Recovery licensee

• Uranium Mill Tailings Radiation Control Act 9

NRC Budget Nuclear Reactor Safety Operating Reactors New Reactors Nuclear Materials and Waste Safety Fuel Facilities Nuclear Materials Users Spent Fuel Storage and Transportation Decommissioning and Low-Level Waste High-Level Waste Integrated University Program Corporate Support Acquisitions Administrative Services Financial Management Human Resource Management IT/IM Resources Outreach Policy Support Training Office of the Inspector General Major Program Business Line Product Line 10

Operating Reactors Business Line Mission Direct Event

Response

Licensing Oversight Research Rulemaking Training Mission Indirect Mission Support and Supervisors Travel Off the Fee Base Generic Homeland Security International Activities 11

12

Budget Overview of the Operating Reactors Business Line Jane Marshall Office of Nuclear Reactor Regulation Division of Safety Systems Russell Felts Office of Nuclear Reactor Regulation Division of Risk Assessment 13

Operating Reactors Product Lines Mission Direct Resources (77%): Mission Indirect Resources (22%):

Event Response Mission Support and Supervisors Licensing Travel Oversight Training Resources Excluded from the Fee Base (1%):

Research Generic Homeland Security Rulemaking International Activities 14

Operating Reactors Business Line Activities

2. Oversight:

Inspections Security Allegations & Investigations Event Evaluation

3. Rulemaking:

Rulemaking activities and associated guidance development

4. Research Activities:

Materials degradation, cable aging Digital systems

1. Licensing:

License amendments (including risk-informed)

License Renewals and Subsequent License Renewals Research and Test Reactors (including Mo-99)

Environmental Reviews Topical Reports Digital I&C Fukushima Closeout 15

How the Budget is Developed

1. Workload Forecast:

• Number of licensed facilities

• Letters of intent and official notifications of plant closures

• Communications with stakeholders

• External awareness

• Analysis of historical data

2. Type and Amount of Work:

• Number and Complexity of licensing actions and inspections

• Number of applications (SLR, Mo-99)

• Potassium Iodide replenishment

• Rulemaking activities

• Research needs 16

FY 2018 vs. FY 2019, Enacted Budget FY 18 Enacted

($K)

FY 18 FTE FY 19 Enacted

($K)

FY 19 FTE Event Response 15,053 45 18,048 48 2,995 3

Generic HLS 1,734 9

1,622 8

(112)

(1)

International Activities 3,207 18 3,555 19 348 1

Licensing 80,972 382 82,640 376 1,668 (6)

Oversight 109,173 538 114,238 536 5,065 (2)

Research 52,329 129 47,115 133 (5,214) 4 Rulemaking 9,472 48 9,577 47 105 (1)

Mission Support & Supervisors 65,682 356 65,201 340 (481)

(16)

Training 8,296 26 8,916 26 621 Travel 14,445 14,311 (134)

Total 360,360 1,551 365,222 1,533 4,862 (18)

Delta OPERATING REACTORS 17

Budget Overview of the New Reactors Business Line Anna Bradford Office of New Reactors Division of Licensing, Siting and Environmental Analysis 18

New Reactors Product Lines Mission Direct Resources (68%): Mission Indirect Resources (20%):

Licensing Mission Support and Supervisors Oversight Travel Research Rulemaking Resources Excluded from the Fee Base (12%):

Training Advanced Reactors Technologies International Activities 19

New Reactors Business Line Activities

1. Licensing:

NuScale DC Review Clinch River ESP ABWR DC Renewal APWR DC Topical Reports Vogtle License Amendments

2. Oversight:

Construction Oversight Vendor Oversight ITAAC closure notifications Allegations &

Investigations

3. Advanced Reactors:

Execute action plans Preparedness for licensing non-LWRs 20

How the Budget is Developed

1. Workload Forecast:

• Letters of intent, including responses to Regulatory Issue Summary

• Communications with stakeholders

• External awareness

• Analysis of historical data

2. Type and Amount of Work:

• Number and Type of Application (DC, COL, ESP), including large light water reactors, small modular reactors, and advanced reactors

• Number and complexity of licensing actions

• Pre-application activities

• Rulemaking activities

• Research needs

• Guidance development and updates

• Construction Oversight 21

FY 2018 vs. FY 2019, Enacted Budget FY 18 Enacted

($K)

FY 18 FTE FY 19 Enacted

($K)

FY 19 FTE International Activities 1,136 6

997 5

(138)

(1)

Licensing 44,608 190 39,749 167 (4,858)

(23)

Oversight 14,300 75 14,933 75 633 Research 15,208 23 14,643 33 (565) 10 Rulemaking 1,534 8

1,874 10 340 2

Mission Support & Supervisors 16,343 87 16,856 87 513 Training 2,854 10 2,772 9

(82)

(1)

Travel 2,615 2,320 (295)

Total 98,596 399 94,143 386 (4,453) (13)

New Reactors Delta 22

Why is the Operating Power Reactors Fee Class Annual Fee Increasing 10 CFR Part 171 Annual Fees Increase:

Proposed Annual fee increase of 8.4%

The total budgeted resources remained flat from FY 2018 to FY 2019 Decrease in the number of power reactors from 99 to 98 due to the shutdown of Oyster Creek Increase in the Low Level Waste Surcharge/Fee Relief Adjustment 10 CFR Part 170 Estimates Decrease:

Removal of 6% PM/RI charge from invoices Shutdown of Oyster Creek Completion of APR1400 Design Certification Reduced workload for Pilgrim and Three Mile Island due to upcoming shutdown Staff efficiencies 23

Budget Overview of the Fuel Facilities Business Line Mike King Office of Nuclear Material Safety and Safeguards Division of Fuel Cycle Safety, Safeguards and Environmental Reviews 24

Fuel Facilities Business Line Product Lines Mission Direct Resources (62%):

Mission Indirect Resources (22%):

Event Response Mission Support and Supervisors Licensing Travel Oversight Training Resources Excluded from the Fee Base (16%):

Rulemaking Generic Homeland Security International Activities 25

Fuel Facilities Activities

1. Licensing:

Development and maintenance of the Program License Amendments Decommissioning Funding Plans Emergency Plans Security Plans Reviews License Renewals Environmental Reviews

2. Oversight:

Development and maintenance of the Oversight Program Inspections Security

3. Rulemaking:

Rulemaking activities and associated guidance development 26

How the Budget is Developed

1. Workload Forecast:

• Number of licensed facilities, letters of intent, communications with stakeholders and external awareness

• Analysis of historical data

2. Type of Work:

• Security, Environmental and Safety

• Type of Licensing Action

• Complexity

3. Inspection Work:

• Scope of frequency of inspections

• Number and type of operating facilities 27

FY 2018 vs. FY 2019, Enacted Budget FY 18 Enacted

($K)

FY 18 FTE FY 19 Enacted

($K)

FY 19 FTE Event Response 380 2

397 2

17 Generic HLS 2,436 3

2,332 3

(104)

International Activities 1,225 7

1,286 7

61 Licensing 6,313 32 5,916 27 (397)

(5)

Oversight 7,905 41 6,761 33 (1,144)

(8)

Research Rulemaking 1,248 7

735 4

(513)

(3)

Mission Support & Supervisors 4,200 22 4,025 20 (176)

(2)

Training 304 619 315 Travel 1,101 1,101 Total 25,112 114 23,172 96 (1,940) (18)

Delta Fuel Facilities 28

Why is the Fuel Facilities Fee Class Annual Fee Decreasing 10 CFR Part 171 Annual Fees Decrease:

Proposed Annual fee decrease approximately 7.4% across the Fuel Facilities Fee Class.

There is a decrease in the total budgeted resources due to aligning resources with a smaller projected workload.

10 CFR Part 170 Estimates Decrease:

Reduction in the number of licensing actions (e.g., fewer and less complex amendments, decrease in the number of license renewals).

Decrease in oversight activities due to the anticipated workload and programmatic efficiencies.

Expected termination of the CB&I AREVA MOX Fuel Fabrication facility construction authorization.

29

Kevin Williams Office of Nuclear Material Safety and Safeguards Division of Materials Safety, Security, State, and Tribal Programs Budget Overview of the Nuclear Materials Users Business Line 30

Mission Direct Resources (50%):

Mission Indirect Resources (18%):

Event Response Mission Support and Supervisors Licensing Oversight Travel Research Rulemaking Resources Excluded from the Fee Base (32%):

State, Tribal, and Federal Programs Generic Homeland Security Training International Activities Nuclear Materials Users Business Line Product Lines 31

Nuclear Materials Users Activities

1. Licensing:

New applications License amendments License renewals License terminations

2. Oversight:

Inspections - HQ and Regions Enforcement Activities

3. Generic Homeland Security:

Integrated Source Management Portfolio (ISMP)

4. Rulemaking:

Rulemaking activities and associated guidance development

5. State, Tribal, and Federal Programs:

Agreement States Applications/Assistance Implement the Tribal Policy Statement Integrated Materials Performance Evaluation Program (IMPEP) 32

How the Budget is Developed

1. Workload Forecast:

• Number of material licenses, expected number of licensing actions, inspections, communications with stakeholders, and external awareness (e.g., emerging technologies)

• Analysis of historical data

2. Type of Work:

• Safety, Security, Outreach

• Type of Licensing Action/Inspection

• Complexity 33

FY 2018 vs. FY 2019, Enacted Budget FY 18 Enacted

($K)

FY 18 FTE FY 19 Enacted

($K)

FY 19 FTE Event Response 699 4

552 3

(147)

(1)

Generic HLS 11,049 15 10,628 15 (421)

International Activities 8,939 16 8,477 14 (463)

(2)

Licensing 8,858 45 9,568 48 711 3

Oversight 11,515 53 11,215 51 (300)

(2)

Research 175 1

184 1

9 Rulemaking 1,748 10 2,025 11 276 1

State, Tribal and Federal Pgms 5,732 31 5,047 26 (685)

(5)

Mission Support & Supervisors 8,190 44 8,411 43 221 (1)

Training 2,014 4

1,609 3

(405)

(1)

Travel 2,949 2,853 (96)

Total 61,868 223 60,569 215 (1,300) (8)

Nuclear Materials Users Delta 34

10 CFR Part 171 Annual Fees:

Annual fees decrease >1%-6% for 13 Categories

• Annual fees remain stable for 11 Categories

• Annual fees increase >1%-28% for 31 Categories

• Annual fees increase >51%-95% for 2 Categories

• Annual fees increase 100% for 1 new Category and 2 new Sub-Categories for FY 2019 10 CFR Part 170 Estimates:

10 CFR Part 170 estimated billings remain stable Why are the Materials Users Annual Fees Decreasing or Increasing 35

Budget Overview of the Spent Fuel Storage and Transportation Business Line John McKirgan Office of Nuclear Material Safety and Safeguards Division of Spent Fuel Management 36

Spent Fuel Storage and Transportation Business Line Product Lines Mission Direct Resources (82%):

Mission Indirect Resources (15%):

Licensing Mission Support and Supervisors Oversight Travel Training Rulemaking Resources Excluded from the Fee Base (3%):

Research International Activities 37

Spent Fuel Storage and Transportation Activities

1. Licensing:

New applications License amendments License renewals -

Transportation and Storage Environmental Reviews Consolidated Interim Storage Facility (CISF)

Applications

2. Oversight:

Inspections - HQ and Regions Security

3. Rulemaking:

Rulemaking activities and associated guidance development

4. Research Activities 38

How the Budget is Developed

1. Workload Forecast:

• Number of licensed facilities, letters of intent, communications with stakeholders, and external awareness

2. Type and Amount of Work (licensing):

• Complexity

• New vs. Amendment

• Safety, Security, and Environmental

• Storage vs. Transportation

3. Type and Amount of Work (inspection):

• Periodicity established

• Number of licensed facilities, vendors, and fabricators 39

FY 2018 vs. FY 2019, Enacted Budget FY 18 Enacted

($K)

FY 18 FTE FY 19 Enacted

($K)

FY 19 FTE International Activities 901 4

559 2

(342)

(2)

Licensing 14,916 61 13,729 62 (1,187) 1 Oversight 2,344 13 2,465 13 121 Research 1,091 2

994 2

(96)

Rulemaking 1,587 7

1,138 6

(449)

(1)

Mission Support & Supervisors 2,899 16 2,859 15 (40)

(1)

Training 41 138 97 Travel 519 581 62 Total 24,298 103 22,463 100 (1,835) (3)

Delta Spent Fuel Storage and Transportation 40

Why are the Spent Fuel Storage/Reactor Decommissioning Fee Class Annual Fees Decreasing 10 CFR Part 171 Annual Fees Decrease:

Proposed Annual fee decrease of 17.7%.

10 CFR Part 170 Estimates Increase:

Licensing activities to support additional storage license renewals and reactors in active decommissioning.

Resuming licensing work on Interim Storage Partners CISF application.

Review of Holtec Internationals CISF application.

41

Why are the Transportation Fee Class Annual Fees Increasing 10 CFR Part 171 Annual Fees Increase:

DOE is the only transportation licensee subject to an annual fee Slight increase in budgeted resources 10 CFR Part 170 Estimates Increase:

Increase in 10 CFR Part 170 estimated billings expected due to additional transportation package casework.

Review new applications for transportation packages.

42

Budget Overview of the Decommissioning and Low-Level Waste Business Line Bo Pham Office of Nuclear Material Safety and Safeguards Division of Decommissioning, Uranium Recovery, and Waste Programs 43

Decommissioning and Low-Level Waste Business Line Product Lines Mission Direct Resources (75%):

Mission Indirect Resources (15%):

Licensing Mission Support and Supervisors Oversight Travel Training Rulemaking Resources Excluded from the Fee Base (10%):

Research International Activities Waste Incidental to Reprocessing (WIR) 44

Decommissioning and Low-Level Waste Activities

1. Licensing:

Decommissioning activities for power reactors and research and test reactors Uranium Recovery licensing activities Safety and environmental reviews Military and Non-Military Radium

2. Oversight:

Inspections - HQ and Regions

3. Rulemaking:

Rulemaking activities and associated guidance development

4. Research Activities:

Research activities to support the application of new technologies at complex sites Analytical tools 45

How the Budget is Developed

1. Workload Forecast:

• Number of licensed facilities, letters of intent, communications with stakeholders, and external awareness

• Analysis of historical data

2. Type and Amount of Work (licensing):

• Environmental and safety reviews

• Type of licensing action

• Complexity

• Power reactor in active Decommissioning: higher level of effort

3. Type and Amount of Work (inspection):

• Periodicity established

• Number of operating facilities 46

FY 2018 vs. FY 2019, Enacted Budget FY 18 Enacted

($K)

FY 18 FTE FY 19 Enacted

($K)

FY 19 FTE International Activities 792 4

1,205 6

413 2

Licensing 15,415 64 11,602 49 (3,813)

(15)

Oversight 5,499 27 5,369 25 (130)

(2)

Research 329 1

488 1

159 Rulemaking 1,324 5

1,795 9

471 4

Mission Support & Supervisors 2,700 15 2,649 14 (51)

(1)

Training 663 812 149 Travel 797 910 113 Total 27,518 116 24,831 104 (2,687) (12)

Delta Decommissioning and LLW 47

Why are the Uranium Recovery Fee Class Annual Fees Stable 10 CFR Part 171 Annual Fees:

WY becoming an Agreement State resulted in only one remaining licensee in the Uranium Recovery fee class.

Commission approved expanding the fee-relief category to stabilize annual fees for single licensee.

10 CFR Part 170 Estimates:

Increase in estimated 10 CFR Part 170 estimated billings for UMTRCA sites.

48

Budget Overview of the Corporate Support Business Line Stephanie Coffin Office of the Chief Financial Officer Division of Planning and Budget 49

• Acquisitions

• Administrative Services

• Financial Management

• Human Resource Management

• Information Technology /Information Management (IT/IM)

• Outreach

• Policy Support

• Training Corporate Support Product Lines 50

FY 2018 vs. FY 2019, Enacted Budget FY 18 Enacted

($K)

FY 18 FTE FY 19 Enacted

($K)

FY 19 FTE Administrative Services 97,192 77 85,526 76 (11,666)

(1)

Financial Mgmt.

32,534 103 32,233 99 (301)

(4)

Human Resource Mgmt.

17,451 47 17,672 44 222 (3)

IT/IM Resources 101,411 176 104,934 174 3,523 (2)

Outreach 3,237 13 3,266 13 28 Policy Support 24,459 133 29,348 136 4,890 3

Training 4,550 14 4,328 13 (223)

(1)

Acquisitions 15,550 54 15,643 54 92 Total 296,385 617 292,949 609 (3,436) (8)

Corporate Support Delta 51

Corporate support business line affects both 10 CFR Parts 170 and 171 to reflect the full cost of agency operations, including corporate support, through proportional allocations (e.g., fully costed FTE rates).

Impact on Fees 52

Q&A 53

Break 54

Fees Setting Program Overview 55

Statutory and Regulatory Framework

• Independent Offices Appropriation Act (IOAA) of 1952

- Regulations Under Part 170 of Title 10 of the Code of Federal Regulations (CFR)

- Fee for services

- Billed as hours expended at the NRC professional hourly rate

• Omnibus Budget Reconciliation Act of 1990 (OBRA-90), as amended

- Regulations under Part 171 of Title 10 of the CFR

- Collect approximately 90% of budget authority by end of fiscal year

- Recover through annual fees

• Research budgetary resources

• Rulemaking budgetary resources

• Other budgetary resources not recovered under IOAA

• Annual Appropriation

• Nuclear Energy Innovation and Modernization Act (NEIMA) 56

Congressional Budget Justification - Current Estimate - Appropriation September Budgetary Analysis -

Fee Class Calculations August - November Annual Fee Rule Process and Timeline Publish Proposed Rule in Federal Register January 30-Day Stakeholder Comment Period - Public Meeting Held February Budgetary Analysis -

Prepare Federal Register Notice February - May NRC Collects Fees and Forwards to Treasury September Final Fee Rule Becomes Effective After 60 Days July Publish Final Fee Rule in Federal Register May Prepare Federal Register Notice December - January 57

Budget and Fee Recovery Amounts for FY 2019 Proposed Rule

[Dollars in Millions]

Total Budget Authority Less: Excluded Amounts (ADV Rx, INTL, WIR, GHLS, IG-DNFSB)

Balance Fee Recovery Rate for FY 2019 Total Amount to be Recovered for FY 2019 Adjustments (Billing)

Adjusted Recovery Amount Less Estimated Part 170 Billings Part 171 Fee Collections Required 911.0 43.4 867.6 x

90.0%

780.8

+

1.1 781.9 246.7 535.2 58

FY 2019 Proposed Fee Rule Budget

[Dollars in Millions]

$ 780.8

$ 86.8

$ 43.4 Total NRC Budget:

$911.0 59

Fee-Relief 1.Activities not attributable to an existing NRC licensee or class of licensee:

Agreement State oversight Scholarships and fellowships Medical isotope production infrastructure

2. Activities not assessed under 10 Code of Federal Regulations (CFR) part 170 licensing and inspection fees or 10 CFR part 171 annual fees based on existing law or Commission policy:

Fee exemption for nonprofit educational institutions Costs not recovered from small entities under 10 CFR 71.16(c)

Regulatory support to Agreement States Generic decommissioning/reclamation (not related to the power reactor and spent fuel storage fee classes)

Uranium recovery program and unregistered general licensees Potential Department of Defense remediation program MOU activities Total Fee-Relief Activities (FY 2019 proposed fee rule)

Less: 10% of the total NRC FY 2019 budget (less non-fee items)

Fee-relief adjustment (credit) to be allocated to all licenseesannual fees 86.6m

- 86.8m 0.2m 60

License Fee Classes Percentage of Budgeted Resources for FY 2019 Operating Power Reactors, 86.6%

Spent Fuel Storage, 4.7%

Test & Research Reactors, 0.2%

Fuel Facilities, 4.0%

Materials, 3.8%

Transportation, 0.6%

Uranium

Recovery, 0.1%

Rare Earth Fee Class 0.0%

Export/Import Fee Class 0.0%

61

Professional Hourly Rate Methodology*

FY 2019 Proposed Fee Rule Mission Direct Program Salaries & Benefits Mission Indirect Program Support Agency Support: Corporate Support and IG Subtotal**:

Less: Offsetting Receipts Total Budgeted Resources Included in Professional Hourly Rate Mission Direct FTEs:

Mission Direct FTEs Productive Hours:

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

• Methodology based on OMB circular A-25 User Charges

• • Budget included in Hourly Rate calculation excludes Direct Program Contract Costs generally billed to licensees separately.

$334.7m 120.6m 304.5m

$759.8m 0.0m

$759.8m 1,810 FTEs 1,510 Hours

$278 62

10 CFR Part 170 Professional Hourly Rate Calculation 63 Budget Resources Mission Direct FTE Converted to Hours

= Professional Hourly Rate FY 2019 Proposed Rule:

$759.8 million (1,851 x 1,510)

= $278 hourly rate Productive Hours Total hours = 2087 Less:

Training hours Holiday hours Vacation hours Travel hours Direct FTE Productive Hours

10 CFR Part 170 Fees

• Professional Hourly Rate for Full Cost Services

- Reactors and other major licensees are billed for staff hours and specific contract costs incurred for licensing and oversight services

• Flat Rate for Licensing Fees

- Material Users pay new license application fees based on the average time to process each type of license application times the effective professional hourly rate

- Biennial Review determines average processing time (performed in odd years; e.g. 2019 & 2021) 64

10 CFR Part 170 Fee Estimate

• Develop estimates by license fee class

- Use billing data from 4 quarters

- Includes billed Part 170 fees 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 quarters of fees collected

- Invoice data: 2 quarters of prior year & 2 quarters of current year 65

10 CFR Part 171 - Annual Fees Annual Fee Calculation

1. Determine budgeted resources by fee class

2. Less: estimated Part 170 receipts

3. Add: allocated generic transportation

4. Allocate net fee-relief credit/surcharge and low level waste (LLW) surcharge

5. Allocate billing adjustments

6. Balance is the required annual fee recovery amount 66

10 CFR Part 171 Calculation Operating Power Reactors Fee Class

[Dollars in Millions]

• Sequestration, the Decommissioning of 2 Reactors, and a Fee Billing credit error in FY 2013 contributed to the Part 171 Fee increase in FY 2014.

FY 2012 FY 2013 FY 2014*

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019P Budgeted Resources

$781.4

$734.7

$799.3

$762.1

$750.4

$670.3

$669.9

$670.2 Part 170 Estimated Billings (295.5)

(303.8)

(290.9)

(284.1)

(287.8)

(256.3)

(239.6)

(213.8)

Adjustments (12.2)

(6.7)

(8.5)

(2.1) 3.3 12.5 (1.4) 3.9 Part 171 Annual Fees 473.7 424.2 499.9 475.9 465.9 426.5 428.9 460.3 Operating Reactors 104 102 100 99 100 99 99 98 Annual Fee per Reactor

$4,555,000 $4,159,000

$4,999,000

$4,807,000 $4,659,000

$4,308,000

$4,333,000

$4,697,000 67

Policy Changes for FY 2019 Changes will affect Parts 170.31 and 171.16 Adding subcategories to Materials Users fee categories for locations of use for medical licenses under fee category 7C Eliminate a fee category 2A(5) - licenses that authorize the possession of source material related to the removal of contaminants from drinking water 68

Fees Transformation Initiative

• Follow on from Project Aim recommendations.

• Goal - to increase transparency, timeliness and equitability of the NRC fees setting process.

• Originally developed over 40 process and policy improvement options approved by the Commission to be completed between FY 2017 and FY 2020.

• 100% of FY 2017, FY 2018 and FY 2019 improvements were completed.

69

Fees Transformation Initiative, cont.

For FY 2020, we have completed:

- Institute two different hourly rates for flat application fees for applicants, to provide funds for infrastructure work. (Closed with no additional change but will revisit if new applications surge).

- NRC has developed guidance on the disclosure of information related to contractor charges associated Part 170 invoices. (Notification was sent out to licensees in January 2019).

On track to complete for FY 2020:

- Flat Fees pilot for uranium recovery activities

- Electronic invoicing (eBilling)

- Analysis of a proposal to issue one license for each uranium recovery site (instead of one license for multiple sites)

- Small entity size standard rulemaking 70

Information Resources

• 10 CFR Part 170 and 10 CFR Part 171:

http://www.nrc.gov/reading-rm/doc-collections/cfr/

• FY 2019 Proposed Fee Rule, Docket No. NRC-2017-0032; Docket No. PRM-170-7; NRC-2018-0172:

http://www.regulations.gov

- Proposed Fee Rule (84 FR 578; January 31, 2019)

- Work Papers (ADAMS # ML18361A780)

• Fee Transformation Accomplishments:

http://www.nrc.gov/about-nrc/regulatory/licensing/fees-transformation-accomplishments.html#2019 71

Nuclear Energy Innovation and Modernization Act (NEIMA)

Budgeting and Financial Management related provisions:

Eliminates the 90 percent requirement for fee recovery.

Excludes certain activities from fee base.

Caps the annual fee per Operating Reactor licensee.

Caps Corporate Support at 30% in the annual budget justification starting in FY 2021 and steps down to 28% in FY 2025 and beyond.

Requires modifications to regulations related to opportunities for licensees and applicants to efficiently dispute or seek review and correction of errors in invoices for service fees.

Requires implementation of processes to audit invoices.

Requires completion of a voluntary pilot initiative related to the establishment of a flat fee structure for routine licensing matters relation to UR recovery.

Requires report to Congress on implementation of the budget and fee related provisions.

72

Q&A 73

Public Comments Submission The deadline for submitting comments for this rulemaking is March 4, 2019.

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-2017-0032. 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.

74

Public Comments Submission, Continued 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: Michele Kaplan, License Fee Policy Team Lead, Office of the Chief Financial Officer, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, telephone: 301-415-5256, e-mail:

Michele.Kaplan@nrc.gov.

ADDITIONAL POINT OF CONTACT: Stephanie Coffin, Director of the Division of Budget and Planning, telephone: 301-415-6138, email:

Stephanie.Coffin@nrc.gov 75

CFO Closing Remarks 76