ML20028C095
| ML20028C095 | |
| Person / Time | |
|---|---|
| Issue date: | 04/26/1982 |
| From: | Dircks W NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| To: | Ahearne J NRC COMMISSION (OCM) |
| Shared Package | |
| ML20028C092 | List: |
| References | |
| FRN-47FR52454, RULE-PR-170 NUDOCS 8301060422 | |
| Download: ML20028C095 (6) | |
Text
.:
I APR 2 61982
!!EMORANDUM FOR: Commissioner Ahearne FROM:
William J. Dircks, Executive Director for Operations
SUBJECT:
SECY 81-615, COMf1ENTS AND RECOMMENDATI0ilS This responds to your coments on the proposed license fee schedule in SECY 01-615.
ITEM 1:
"Even considering the ED0's flovember 30, 1981 response, I do not believe the staff proposes recovering an adequate percentage of the inspection and licensing effort.
For example, I would expect to recover a signifi-cantly greater percent of the entire regional effort than the projected 50 percent. This leads me to ccnclude the Comission needs a better understanding of what the EDO plans to exclude fica fee charaes, partic-ularly in the inspection and licensing offices.
I understand, tur example, travel time to an inspection site, the mobile lab, technical training and a large portion of IE program support are excluded.
I would like the EDO to provide a list of the programs, overhead categories and functions wnicn are excluded from fee charges (e.g., travel, generic studies, ilRC Oper-ations Center, program development, contract support, indemnity programs, state liaison, etc.) and the estimated annual resource expenditures for these programs."
RESPONSE: SECY 31-615 expands fee coverage to include charges for all inspections, and investigations whereas the current schedule imposes charges only for routine inspections and then only at a specified frequency.
Recovery is increased for ilRR activities because previously imposed " ceilings" on fees would be eliminated as would the waiving of charges for Part 2 c'ders and consequent amendments.
Under the revised rule, revenues for MISS applications, licenses and amendments would not change appreciably except for the adjustment in staff and overhead costs. There are no new areas for recovery in itMSS and only a small portion of lDISS effort results l
in licenses and amendments.
The revised fee schedule would recover the costs of licensing and inspection staff effort plus contractual costs specifically identified with an application or inspection.
In computing the professional rate for each of the major program offices, which included regional operations, we included personnel compensation and benefits, travel and administrative support costs for each office as well as a pro rata share of NRC's administrative support costs (e.g., Controller, Adit, ELD,liPA, SECY, and ED0).
Enclosures 1, 2 and 3 are Tables prepared by IE,fiRR, and NMSS showing an allocation of their costs on an activities basis.
They show which activities are included in SECY 81-615 for cost recovery purposes and which were excluded.
Activities included are essentially those required for an approval of a license, topical report, etc., and to conduct an
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l 8301060422 821222 PDR PR 170 47FRS2454 PDR I
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Commissioner Ahearne The legal staff advises that the scope of the Commission's fee i
regulations may be broadened to cover activities which are corrently excluded from cost recovery. To include activities where there are multiple beneficiaries would be a change in policy and require prorating of costs.
If the Commission decides to broaden cost recovery, the staff would need to re-examine fee guidelines and perform a comprehensive in-depth analysis of the activities and resources for each Commission office. Such an analysis would require the assistance of each operating office and the legal staff.
It is estimated that six months would be required to complete an NRC-wide analysis.
ITEM 2:
"The rule should be modified to allow. automatic annual update of fees based on prevailing salary schedules."
RESPONSE: The " Notice of Proposed Rule Making" in SECY 81-615 can be modified to provide for an annual update of professional staff rates and ranges of costs in Part 170. This can be accomplished by modifying the proposed rule to include a statement that it will be adjusted annually to take into consideration any cost changes due to salary increases and inflation.
ITEM 3:
"I would propose instituting fee charges for non-profit institutions."
RESPONSE: The only non-profit institutions exempt from license fees are educational institutions (650 licenses).
However, licenses issued to Federal agencies (970), State agencies (750), export licenses (500), and
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those Part 70 licenses issued to CP holders for fuel storage (25) are exempt from fee charges.
In addition, there are approximately 100 miscellaneous materials licenses which are fee exempt and are issued to patients for pacemakers, museums, foreign governments, etc.
In addition to the materials licenses cited above, there are 53 Part 50 licenses held by colleges and universities for research reactors or critical facilities licenses and these are not subject to licensing and inspection fees.
The imposition of fees on Federal agencies for licenses and inspections would require legislation'since the legislation under which the Commission imposes fees expressly exempts Federal agencies. All of the other exemptions from fees could be eliminated from Part 170 by the Commission.
ITEM 4:
"I would include charges for Commission orders (no application from licensee), show cause orders, and contested casework (ASLBP and ASLAP)."
RESPONSE: Since Three Mile Island there has been a significant increase in the number of licensees receiving Part 2 orders and in actions resulting from orders.
In FY 1931 more than 100 individual orders were sent to licensees. None were subject to fees.
Orders and resultant amendments and approvals may be made subject to fees by amending Part 170.
The legal staff has advised us that fees can be assessed to recover the ommission's costs of hearings, and may be accomplished by amendi ng omen >
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Comissioner Ahearne ITElI 5:
"In conjunction with the six month billing cycle, I would propose the Comission be provided a report on the amount of fees billed by office showing the percent of contract and staff effort recovered for that six month period."
RESPONSE: Beginning six months after adoption of the amended regulations and revised schedule of fees, and every six months thereafter, the Comission would be furnished a report showing the total amount billed, amount collected and amount of contract costs and staff effort recovered.
(S!glied William J.Dircks William J. Dircks Executive Director for Operations
Enclosures:
As stated cc: Chairman Palladino Comissioner Gilinsky Comissioner Roberts SECY OPE OGC DISTRIBUTION:
LFMB License Fee File WOMiller, LFMB PNorry, ADM CJHolloway, LFMB WJDircks, ED0 i
Green Ticket No. 11554 j
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IE - FY 1981 COSTS 2
Contractual Total _/
E Costs Cost Staff Years
($000)
($000)
Headquarter Staff Subject to Recovery in Proposed Fee Schedule Emergency Preparedness Licensing 13.5
$401
$1,092 Emergency Preparecness Exercises 12.3 221 851 Subtotal Included for Cost Recovery 25.8
$622
$1,943 Not Subject to Recovery in Proposed Fee Schedule Program Development & Appraisal 100.6
$1,801
$ 6,951 Incident Response /Op. Ctr. Support 16.0 371 1,190 Events Analysis 7.4 601 980 Bulletins, Circulars & Information Notices 12.3 276 906 Investigation Assistance 3.7 189 Enforcement Action 4.9 251 Reactor Training Center 23.3 1,039 2,231 Subtotal Excluded for Cost Recovery 168.2
$4,088
$12,698 Regional Staff Subject to Recovery in Proposed Fee Schedule Routine / Reactive Inspection 146.2
$ 7,484 Preparation / Documentation 139.9 7,162 Investigation / Enforcement 5.0 256 968 Performance Appraisal 18.9 Subtotal Included for Cost Recovery 310.0 $15,870 Not Subject to Recovery in Proposed Fee Schedule Independent Measurement Contracts
$2,474
$ 2,474 Non-Docket Inspector & Investigator Effort 175.3 8,974 Docket Travel Time 73.0 3,737 Non-Docket Travel Time 27.3 1,397 Training 36.5 1,868 Vendor & Contractor Activity 45.5 2,329 Regional Operations Center Training 11.4 584 Subtotal Excluded for Cost Recovery 369.0
$2,474
$21,363 E
Total IE & Regions 873.0
$7,184
$51,874
.I/ IE management direction and sup 3rt costs have been prorated to each decision unit.
2_/ Cost / staff year = $51,191.
Includes salaries and benefits, administrative support and travel.
In the calculation of the Professional Rate, used in the Staff Paper, we have also included Program Direction and Administration and Program Technical Support Costs.
3/ Excludes $794,000 in equipment costs which are not included for fee purposes.
NRR FY 1981 COSTS s
of Contractual Totalt E
Costs Cost Staff Years
($000)
($000)
Subjcct to Recovery in Proposed Fee Schedule Casework - Licensing Reviews 283.4
$12,600
$29,795 Operating Reactors - Lic. Actions-153.1 8,695 18,053 Operator Licensing 10.6 1,396 2,074 Subtotal Included for Cost Recovery 447.1
$22,691
$49,922 Not Subject to Recovery in Proposed Fee Schedule Casework Generic Safety Assessment 18.8
$ 2,900
$ 4,113 615 Contested Hearings 10.4 Non-Commercial:
Non-Power Reactors 4.6 251 533 Subtotal - Casework 33.8
$ 3,151
$ 5,261 Operating Reactor - Safety Assessment 18.8
$ 2,039
$ 3,221 Operator Licensing 1.7 247 355 Systematic Safety Evaluation of 32.9
$ 3,390
$ 5,457 Operating Reactors Safety Technology Unresolved Safety Issues 12.5
$ 1,093
$ 1,873 Risk Assessment 15.6 720 1,671 Generic Issues 47.0 1,347 4,174 Research/ Standards Coordinator 21.9 1,291 Operating Experience Evaluation 7.7 497 970 Regulatory Requirements 36.0 314 2,450 1,764 1,827 Code Analysis & Maintenance l
l Subtotal - Safety Technology 140.7
$ 5,735
$14,256 l
TMI-2 Cleanup 25.0 660
$ 2,155 Subtotal Excluded for Cost Recovery 252.9
$15,222
$30,705 l
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Total NRR 700.0
$37,913
$80,627 l
If NRR management direction and support costs have been prorated to each decision unit.
2/ Cost per staff year = $61,020.
Includes salaries and benefits, administrative support and travel.
In the calculation of the Professional Rate, used in the Staff Paper, we have also included Program Direction and Administration and l
Program Technical Support Costs.
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a NMSS - FY 1981 COSTS Contractual Total]
2 E
Staff Costs Cost Years
($000)
($000)
Subject to Recovery in-Proposed Fee Schedule Fuel Cycle & Materials Safety 35.7
$ 590
$2,798 278 Sa feguards 4.5 Waste Management 7.3 623 1,075 Subtotal Included for Cost Recovery 47.5
$1,213
$4,151 Not Subject to Recovery in Proposed Fee Schedule Licensing Activity (includes fee exempt, 49.3 185
$3,235 agreement state work and generic work)
Non-Licensing Activities Radiological Contingency Planning 7.5 300 764 Update / Development of Regulations 87.6 6,538 11,957 Program Area Direction & Misc.
37.1 1,593 3,888 Assess SG Effectiveness 34.6 1,667 3,807 IAEA Agreement Implementation 3.5 80 296 High Level Waste Site Screening 4.5 278 West Valley Proceedings 3.2 1,047 1,245 Develop Licensing Review Procedures 11.6 2,228 2,946 Remedial Actions & Decommissioning 6.6 961 1,369 Subtotal Excluded for Cost Recovery 245.5
$14,599
$29,785 Total NMSS 293.0
$15,812
$33,936 1/ NMSS management of direction and support costs have been prorated to each decision unit.
2] Cost per staff year = $61,857. Includes salaries and benefits, administrative support and travel.
In the calculation of the Professional Rate, used in the Staff Paper, we have also included Program Direction and Administration and Program Technical Support Costs.
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