ML20199B859
| ML20199B859 | |
| Person / Time | |
|---|---|
| Issue date: | 09/11/1997 |
| From: | Mcgaffigan E NRC COMMISSION (OCM) |
| To: | Hoyle J NRC OFFICE OF THE SECRETARY (SECY) |
| Shared Package | |
| ML20199B782 | List: |
| References | |
| SECY-97-146-C, NUDOCS 9711190128 | |
| Download: ML20199B859 (5) | |
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N OT ATIO N ' VOTE RESPONSE SHEET TO: John C. Hoyle, Secretary FROM: COMMISSIONER MCGAFFIGAN
SUBJECT:
SECY-97-146 - NRC'S MANDATED AND NON-MANDATED ACTIVITIES AND REVISIONS TO AGENCY POLICY ON PERFORMING REIMBURSABLE WORK FOR OTHERS Approved #N Disapproved X " Abstain Not Participating _ Request Discussion COMMENTS:
See attached comments.
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SIGNATURE [6() V Release Vote /_)(_/ h /I i)
I I DATE Withhold Vote / I Entered on "AS" Yes >f_ No l
.97111{ gC CORRESP
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Commissioner McGaffiaan's Coments on SECY-97-146 Ihavehadgreatdifficultydialingwiththispaperwithoutsimultaneously. i
- dealing with the issues of defining " business-like FTEs* and of reassessing which parts of our budget belong in the fee base and which parts belong _in a 9eneral fund appropriation. In my view. all of these 1ssues'are intertwined and should be considered in an integrated fashion, as was suggested by the SRM _
on DSI-21. I continue to find it frustrating that these issues are being addressed in'a' sequential fashion and on a schedule that;is out of step with budget development for FY 1999. I have delayed-voting in the hope that these ,
overduepapersvouldbepresentedtotheCommissionforaction.-Thathopehas not yet been realized, but under Commission procedures I-must now vote on this paper.
To some significant degree the whgle concept of mandated and non-mandated
" activities-appears to be a mechanism for distinguishing between those reimbursable activities for which we will not seek full-cost recovery from.the agency with the statutory mandate and business-like FTE relief from OMB and those reimbursable activities for which we will. When we do not seek full-cost recovery and FTE relief for a reimbursable activity and instead require -
reimbursement from NRC licensees through fees, we inevitably create a fairness _
and equity issue. We substitute NRC licensee fees for what would otherwise be a general fund appropriation to the agency with the statutory mandate. We tax our licensees for perhaps a very laudable U.S. government purpose, such as nuclear safety in Central and Eastern Europe (CEE) and the former Soviet Union (FSU), but not one for which NRC licensees: derive direct benefits. A fairer approach in ray view would be either 1) to require full-cost recovery from the agency with the mandate with the FTEs being counted as business-like or 2) to
- request an appropriation for the NRC share of the funds and associated FTEs outside the fee base and thereby determine whether OMB and Congress support ;
.r - NRC involvement in the activity enough to fund it out of the general fund.
in the draft Appendix to the FY-1999 budget submitted by the staff in COMSECY-97-020, the staff proposal'was consistent with the approach to reimbursable
? - work which I am advocating in all areas except the 18 FTE to support assistance efforts in the FSU and CEE.
The_ work on DOE external regulation and DOE regulatory assistance and the-
- ! associated FTEs are proposed to be
- requested in an NRC general fund appropriation outside the fee base. All other reimbursable agreements are
= proposed for full-cost _ recovery-and business-like FTE relief, except for the agreements with AID and DSWA supporting nuclear safety assistance to the i*.yr? -,*g=3 g- iv gr 9-_.er+ s--- ~ e+y-w -3 y-.m6 - ,,,c-a p.p+w,- s- ew- z--a- e =s--ev + 6 =-w--
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2 FSU/CEE. In the FSU/CEE case, the staff proposal is not to seek reimbursement
. for 18 NRC FTE from the agencies and not to count these 18 FTE as " business-
- like." For the reasons outlined above I strongly disagree with this staff proposal. If we can not get full reimbursement from the agencies for these FTE. I would urge that these 18 FTE be moved to the general fund request in FY 1999 and be counted there just as we are proposing for the DOE work.
I would also note that by a memo dated September 5. 1997, the CF0 has noted another exception not mentioned in SECY-97-146 to pursuing full-cost recovery .
. for reimbursable work, namely "when NRC imposes an annual fee on the Federal agency requiring our services." In the memo the CF0 makes the case that it is-more beneficial to continue receiving the full annual fee payment from DOE than to seek full-cost recovery for naval reactor fuel transportation cask reviews and negotiate a lower annual fee from DOE. I agree that this appears to be a sound exception, but I am disappointed that this was not discussed in the current paper.
In short. I do not believe that the concept of " mandated" and "non-mandated" activities serves any purpose as-it has been proposed and applied. I certainly do not agree that Commission decisions (especially Commission
" decisions" taken on previous budget submittals'without a full discussion of the issues involved) establish " mandated" activities in the way that a statute, executive order, treaty convention, or government-to-government agreement would. I note that our reimbursable. work with NASA on the Cassini and Mars Pathfinder missions is " mandated" by a Presidential Directive (revision to NSC/PD 25. dated May 8. 1996). One could. argue that this is a stronger " mandate" than we have for the FSU/CEE assistance, although the staff's budget proposal qloes not reflect that. For these reasons. I ,
disapprove the proposed concepts and definitions of mandated and non-mandated !
activities.
Having said that. I believe that we do need a policy for reimbursable work. I ;
am attaching a marked-up copy of the policy I would recommend. It would get !
rid of any reference to " mandated" and "non-mandated" activities, call for '
full-cost recovery as the general rule, and require Commission approval ~of waivers from the, rule with three exceptions. As noted above. it is also my view that in those cases where the Commission approves a waiver, thereby 1 creating equity issues, the Commission should address the resulting fairness issue at the earliest potsible opportunity by seeking a general fund i appropriation for those continuing costs in the next year's hudget request.
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3 I approve the second exception with sone reluctance because the staff has not quantified the " minimal NRC staff resources
- associated with it and because there may be opportunities for full cost recovery here as well.
I conclude by reiterating the point I made at the outset that this paper needs to .'e integrated with the overdue papers on
- business like FTEs* and the removal of items raising equity concerns from the fee base. The Comission has eff(ctively been forced to deal in part with those issues in its decision on SECY 97 146.without tne benefit of the staff papers.
Attachment:
As stated 4
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Attachment to Commissioner McGaffigan's vote on SECY-97-146 l The Comissioners 7-i 1
RECOMMENDATIONS:
It-is recomended that the Commission:
e Approve the criteria delineated in this paper for determining mandated :
and non mandated agency activities. J ,qtm * ( 6.rtc) ;
e Approve the following revisions to NRC's policy of rer:overing full ,
agency costs through reimbursable agreements:
bil NRC will pursue reimb sement from Federal agencies and other outside -
organizations for the costs of meM eted actotities which are not a part of its statutory mission and for which NRC has not received appropriations.
NRC will perform work for Federal agencies and other outside organizations tMt " '"" only on a reimbursable basis by recovering full agency costs, unless a waiver is granted by the M or the work meets one of the exceptions noted below: Ce .~ 4...a ,
NRC will accept reimbursement of travel expenses from outside organizations to advise or lecture in conferences, meetings. or training programs when authorized by statute, in such cases the NRC will not seek to recover the salary and benefits or overhe.d ;
costs associated with the travel.
NRC will continue to provide on the job training. limited regulatory advice, and formal technical training to foreign representatives without requiring reimbursement of costs.
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The Office of t General Counsel has no legal objection to this paper.
dW AesseL. unches Chied Financial Officer Commissioners' comments or consent should be provided directly to the office of the Secretary by COB _Honday, July 28, 1977 Commission Staff office comments, if any, should be submitted to the Commissioners NLT Monday, July 21. 1997, with an information copy to the office of the Secretary.
-If.the. paper is of such a nature that it requires additional review and comment, the commissioners and the Secretariat should be apprised of-when comments may be expected. ,
DISTRIBUT1oN:
Commissioners OPA Clo SECY oGC 01P cTo olG OCA EDo
/
- UNITED STATES
/ n NUCLEAR REQULATORY COMMISSION
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k*.... November 5, 1997 M CarTARf J t[.W MEMORANDUM TO: Jesse L. Funches I Ch j Fi nancial j-FROM: Joh . Ho e, ecretary
SUBJECT:
STAFF REQUIREMENTS - SECY 97146 - NRC'S MANDATED
- AND NON MANDATED ACTIVITIES AND REVISIONS TO AGENCY POLICY ON PERFORMING REIMBURSABLE WORK '
. FOR OTHERS The Commission has approved the criteria proposed for defining " mandated" rmd "non-mandated" activities, with one exception: the Commission remains spilt on the issue of whether a Commission decision gat _as should be viewed as establishing a mandate for the NRC. As a result, the Commission has not decided whether to designate an activity as mandated or non-mandated when it is required by a statute, executive order, treaty, convention, or govemment-to govemment agreement, but the NRC is not explicHy named as the appropriate agency to carry out the activity. Certain NRC activities, to be performed in support of a government mandate that does not specifically require NRC action, will require Commission consideration on a case by case basis.
The Commhslon approves the following revisions to the NRC policy of recovering full agency costs through reimbursable agreements:
The NRC will pursue reimbursement from Federal agencies and other outside organizations for the full costs of activities that are not a part of its statutory mission and for which the NRC has not received appropriations, unless a waiver is granted by the Commission or the work m6ets one of the exceptions noted below:
- 1. The NRC will accept reimbursement of travel expenses from outside organizations to advise or lecture in conferences, meetings, or training programs when authorized by statute. In such cases, the NRC will not seek to recover the salary and benefits or overhead costs associated with the travel.
- 2. The NRC will continue to provide on the-job training, limited regulatory advice, and formal technical training to foreign representatives without requiring reimbursement of costs.
- 3. The NRC imposes an annual fee on licensees for certain certifications and SECY NOTE: THIS SRM, SECY 97146, AND THE COMMISSION VOTING RECORD CONTAINING THE VOTE SHEETS OF ALL COMMISSIONERS WILL BE MADE PUBLICLY AVAILABLE S WORKING DAYS FROM THE DATE OF THIS SRM.
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approvals held by another Federal agency, provided that in these cases, it is -!
more benofloial to continue the annual fee payment than to seek full cost .
recovery. {
! 4. For reimbursable employee details to other Federal agencies or outside ;
organizations, the other Federal agency or other outside organization will be ;
j charged only the salary and benefK costs for that employee,
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With respect to exception 2, the staff is advised that this approval is conditioned on training and !
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travel assistance being provided to Agreement States on a non-reimbursable besis as directed by the Commission in the SRM on COMSECY.g6-064 and, more recently, in the SRM on j SECY.g7183. Any proposed change in the policy on funding of Agreement State training and i travel should also include a re examination of technical training on a non-reimbursable basis for -
. E foreign nationals.
s cc: Chairman Jackson' Commissioner Dieus Commissioner Diaz Commissioner McGaffigen !
ClO !
OCA l OlG !
Office Directors, RegZns, ACRS, ACNW, ASLBP (via E Mell)
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