ML20137L383
| ML20137L383 | |
| Person / Time | |
|---|---|
| Issue date: | 03/27/1997 |
| From: | Hoyle J NRC OFFICE OF THE SECRETARY (SECY) |
| To: | Callan L, Scroggins R NRC, NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| Shared Package | |
| ML20137L372 | List: |
| References | |
| COMSECY-96-065, COMSECY-96-65, DSI-21, SECY-96-065-C, SECY-96-65-C, NUDOCS 9704070214 | |
| Download: ML20137L383 (3) | |
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UNITED STATES e
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MEMORANDUM TO:
L. Joseph Callan i
Executive Director for Operations
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i Ronald M.
Scroggins Acti Chief Financial Officer N
FROM:
John.. Hoyle, Secretary
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SUBJECT:
STAFF REQUIREMENTS - COMSECY 96-065 -
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STRATEGIC ASSESSMENT DIRECTION SETTING ISSUE:
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FEES (DSI 21) t i
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The Commission believes that the NRC's public health and safety i
mission must be the foundation in,naking decisions about what l
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activities the agency should perform.
In making decisions on the I
work which the NRC will perform, the Commission does, and will continue to, consider the cost of its activities and consistently
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axamines ways to accomplish its mission within a responsible
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budget.
The NRC must evaluate thoroughly the efficiency and l
effectiveness of existing and proposed activities and continually
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j seek ways to reduce expenditures without compromising safety, j
Whether the NRC's budget is funded by the public through taxes q
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paid to the treasury or by licensees through fees paid to the treasury, the NRC's decisions about its programs should be the same.
l The Commission believes that fees should not be a primary factor l
ir. determining the work to be performed in response to NRC health j
and safety mission.
It is the Cummission's position that programmatic decisions in response to NRC mandates will not be 4
driven by fees.
Specific activities conducted by the NRC will be evaluated for efficiency and effectiveness.
The NRC performs two primary types of activities.
These types of activities are categorized as mandated and non-mandated.
Mandated activities include those dir7cted by statutes, Executive Orders, treaties, Commission decision etc.
Non-mandated i
activities include those activities which are not required to respond to mandates, but are performed as a ' service' to another organization.
The Commission's decision provides for a responsible decision-making process for mandated activities while allowing the NRC to assist other organizations on a reimbursable basis.
When the Commission is requested'to perform non-mandated
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activities the requestor will reimburse the NRC for the cost of 1
9704070214 970403 PDR NRCSA I 21 PDR
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performing the requested activities.
In order to implement this dec4.sion staff should develop, for Commiss'.on review and approval, a set of criteria for defining i
mandated and non-mandated activities.
These criteria will allow for a clear framework within which to consistently determine funding of NRC activities.
(CFO/EDO)
(SECY Suspense:
6/30/97)
As to the issue on how NRC should recover its costs in a fair and equitable manner the Commission will continue the agency's current approach to comply with existing law and collect 100 percent of the appropriated budget authority from NRC applicants and licensees.
However the Commission continues to believe that to be fair and equitable to NRC licensees, the Commission will seek OMB and Congressional authorization to remove certain NRC activities that do not directly benefit NRC licensees from the fee base and instead fund those activities from non fee-based appropriations or separate appropriations.
The staff should j
review the reimbursaolo work agreement policy addressed in SECY-95-012 and propose revisions to Lhe policy, for Commission review ll and approval, to address the distinction between mandated and l
non-mandated activities, as discussed in the previous paragraph.
(CFO)
(SECY Suspense:
6/30/97) 1 The Commission recognizes that changes, which have occurred or i
will cleorly occur (e.g.,
electric utility economic deregulation which will rapidly change the competitive environment frr NRC I
powel reactor licensees) since the Commission issued the Reoort to Cor.yress on the U.S. Nuclear Reculatory Commission's Licensee i
Fee Policy Review issued in February 1994 might identify new 1
issues for consideration by Congress.
Therefore, the staff This should p2epare an update to the February 1994 report.
and update sheuld consider the Commission's final decisions, applicable stakeholder comments, oi the NRC's Direction Setting Issues.
In particular, the staff unould consider those areas which were ETecifically identified in tne 1994 report.
These 4
include-(1, Agreement State training and travel costs, (2) the costs associat?d with the development of NRC materials regulations and guidance and NRC oversight of Agreement States programs, (3) the costs of site decommissioning management plan activities not recoverable under 10 CFR Part 170, and (4) the l
costs of NRC's regulatory assistance to foreign regulatory bodies
- all of which should receive a separate appropriation outside i
the fee base.
Recommendations on items (1) and (4) should be provided in a time frame that will allow consideration in our budget submittal for FY 1999.
(CFO)
(SECY Suspense:
Items I.1 ) and (4) 6/30/97) i Other issues 9/30/97) l r
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As to FTEs, it is the Commission's position that the NRC should l
identify those FTEs associated with reimbursable work as business-like activities under the terms of the January 1996 OMB letter to the CFO Council.
The staff should include j
identification of business-like activities as part of the FY 1999 l
budget planning process.
The FTEs associated with the business-l like activities should be separate from the total FTE budget ceiling and the NRC should seek early OMB support for inclusion
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4 of the " reimbursable business-like FTEs" in the FY 1999-2001 budget submittal as directed in the January 1996 OMB letter.
(CFO)
(SECY Suspense:
7/31/97) a Y
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Chairman Jackson Commissioner Rogers 1
Commissioner Dicus Commissioner Diaz
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Commissioner McGaffigan OGC j~
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