ML20212K604

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Informs That Author Incorporated Jackson Comments on Draft Press Release Concerning Fee Rule
ML20212K604
Person / Time
Issue date: 03/26/1999
From: Landau M
NRC
To: Gerard Jackson
NRC
Shared Package
ML20138F537 List:
References
FRN-64FR15876, RULE-PR-170, RULE-PR-171 AG08-1-022, NUDOCS 9910060325
Download: ML20212K604 (11)


Text

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' From: , ' Mindy Landau PM  ;

To: l

/ Glenda Jackson , ,

Date: i 3/26/99 3:51pm

Subject:

Re: Draft press release -Reply .

Glenda, I incorporated your comments (see attached). I just heard the package went to the Federal Register today. We can put it out Monday morning, Talk to you then.. ..

> > > Glenda Jackson 03/26 3:29 PM > > >

Mindy, -

We have made a few editorial changes. The Attached WP file reflects those changes, in addstion, although you have included it in past years, we still oppose including the table of fee amounts because two optional schedules of fees are being i

presented. ' in addition only presenting the few fee categories listed is not representative of the rule change, and the table lengthens the document considerably. Please e-mail me your final version. We think releasing it on Monday is OK-hoipefully - {

it will be published 4/1 or 4/2.. .

Thanksfl Gleada

. > > > Mindy Landau 03/26/9911:17am > > >

Glenda, here is the revised version. l

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1 i 9910060325 991001

, PDR PR i 170 64FR1 SIB 76 PDR AA (cob 03&/

[Bao Nguyen - retS3.WPD Paga1]

1 G:\dpr\ fees.wpdMarch.26, 1999' MSLl:10 PM DRAFT (FR Notice)-

NRC SEEKS' COMMENT ON PROPOSAL TO' AMEND LICENSING, INSPECTION AND ANNUAL FEES The Nuclear Regulatory Commission is seeking comment on several major changes.it is considering for the fees it charges to licensees for the 1999' fiscal year.

The agency is' legally required to collect nearly all of its

-operating' budget through two types of fees. One type is an annual fee paid by all licensees, which recovers general regulatory expenses and:other costs not recovered through fees i

.for; service. The other is for services such as licensing and )

l inspection activities. For fiscal year 1999, the Commission must recover $449.6 million'in fees.

As part of the.new options under. consideration, the NRC is .

proposing that one of two methods ~be used for establishing annual

' fees:-rebaselining, or rebaselining,with;.a'50 percent cap on any

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I: f'ee. increased N N N .

re:ia' new annual fee Also being proposed ~this.' year e

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cc s .J

l Bao;Nguy.n - FEES 3;WPD~ ~'

Pagm 2 l category for spent fuel storage / decommissioning; expansion of cost recovery for certain reviews and inspections; and elimination of " flat" license amendment fees for small materials licensees.

Under the rebaselining method, the agency determines the approximate costs attributable to each type of licensee such as power reactors or fuel facilities. These costs, less the estimated amounts to be recovered through fees for licensing and inspection services, comprise the annual fee.

The NRC last applied the rebaselining method four years agop S #

in an effort to simplify and stabilize its fee program. The agency decided to rebaseline again this yearYgbecause of the proposed addition of a new fee class and other recent eventsp such as strategic planning efforts, downsizing, and the reorganization of resources.

Rebaselining this year would decrease annual fees for power reactors and some materials licensees, but increase them for l

other materials licensees such as solution-injection uranium '

mines, uranium mills, fuel facilities and transportation casks. 1 4

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The other-option -- to rebaseline with a cap -- would ensure that 'no licensee's fiscal year 1999 annual fee increases more I than 50 percent over fiscal year 1998 amounts.

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, - [Bao Nguy4n - FEE 83.WPD~ _ ~Pagi 3 ]

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The new fee class introduced provides that a spent. fuel storage / decommissioning annual fee'be assessed to all power reactors regardless of their operating status. Currently, annual fees are assessed for power reactors with facilities being decommissioned and with spent fuel stored ir a dry cask facility.

But no such fees are currently charged to licensees being

-decommissioned.that store fuel.in'a pool.

Also.under the,new! proposal, fees would:be assessed for document reviews,ncertain! project" manager activities, and all inspections, including licensee-specific performance reviews, evaluations, Land; incident. investigations. There activiules dre p/'

performed.fer" pecific lica.. :: .

For.small materi.als licensees, " flat" ' fees are now assessed  ;

based on-the average time ~it takes to complete license amendment reviews. Under the proposed fee rule, " flat" amendment fees would be eliminated to increase efficiency, and instead the cost would be a d d ~" *o these licensees' annual fees.

lNd e h Also in the.1999 proposed fee amendments is an increase in hourl'yfratos for. inspection and other professional staff services.

The $449.6 million to be recovered from fees this year does not include $17 million appropriated from the Nuclear Waste Fund for high-level waste activities. Neither does it include $3.2

Pt' l Bas Nguy4n - FEES 3.WPD _ Pag 3 4]

million appropriated for NRC's activities related to reviews for the Department of Energy. Funding for these activities is excluded from license fee' revenues by law. The total amount to be recovered in fees is about $5.2.million less than that recovered the previous fiscal year.

ecause of the two policy decisions being proposed

-(rebasell ing, or'rebaselining with a cap), two different fee

. structures e being presented for 1999. They are:

Class of Licensee Proposed FY 1999 Anr.ual Fee (Without a cap) (With a cap)

Power Reactor Licensees: $2,769,000 $2,775,000 l

(Including spent fuel  !

l storage / decommissioning annual f  ;  !

down from $2,976.000 last < year)

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i Spent Fuel Storage /

Decommissioning $199,000 $199,000 l

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, 1 Nonpower Reactor Licensees $85,900 $85,600 (up from $57,300 last year)

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High-Enriched Uranium Fuel Facility Licensees $3,281,000 $3,288,000

-(up from $2,604,000 last year) l l

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F [Bao Nguyen-rssS32 J Page 5]

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D Low M r d. Uranium Fuel-l .g t

Fabrication Faci Licensees Which Manufacture Fuel

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l for Nuclear Power Plants $1, ,000 -$1,103,000,

.down

( fromL SI,278,00'0 last year)

Written' comments on-the proposed amendments to Parts 170 and 171' of the Commission's regulations should be received 30 days

.g after publication in the Federal Register. They should be addressed to the Secretary, U.S. Nuclear Regulatory Commission, Washington, D.C.,. 20555 0001, ATTN: Rulemakings and Adjudications staff. Comments may also be submitted via .the NRC's electronic rulemaking website at http://www.nrc. gov. Select "rulemaking"  !

.from the . tool- bar and then "rulemaking forum."

Because the agency is soliciting comments on two potential fee schedules.for FY 1999, for this year only, the final rule will be mailed'to all licensees.:The final rule'will also be .

published in the Federal Register andlwill be available on the Jinternet, fat http://ruleforum.llr1. gov /.

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\, fOA From: Mindy Landau To: Glenda Jackson . .

Date: 3/26/99 3.51pm

Subject:

Re: Draft press release Reply . .

)

Glenda, I incorporated your comments (see attached). I just heard the package went to the Federal Register today. We can put it out Monday morning. Talk to you then.. .. .

> > > Glenda Jackson 03/26 3:29 PM > > > l Mindy, We have made a few editorial changes. The Attached WP fia reflects those changes, in addition, although you have included it in past years, we still oppose including the table of fee amounts because two optional schedules of foes are being presented. In addition, only presenting the few fee categories listed is not .epresentative of the rule change, and the table j lengthens the document considerably. Please e-mail me your final version. We think releasing it on Monday is OK-hoipefully l it will be published 4/1 or 4/2..

)

Thankall l Glenda

> > > Mindy Landau 03/26/9911:17am > > >

Glenda, here is the revised version.

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G:\dpr\ fees.wpdMarch 26, 1999 l MSL3:43 PM D R JL FT (FR Notice)

NRC SEEKS COMMENT ON PROPOSAL TO AMEND LICENSING, INSPECTION AND ANNUAL FEES The Nuclear Regulatory Commission is seeking comment on several major changes it is considering for the fees it charges to licensees for the 1999 fiscal year.

The agency is legally required to collect nearly all of its operating budget through two types of fees. One type is an annual fee paid by all licensees, which recovers general regulatory expenses and other costs not recovered through fees for service. The other is for services such as licensing and inspection activities. For fiscal year 1999, the Commission must recover $449.6 million in fees.

As part of the new options under consideration, the NRC is proposing that one of two methods be used for establishing annual fees: rebaselining, or rebaselining with a 50 percent cap on any fee increase over fiscal year 1998 amounts.

Also being proposed this year, are: a new annual fee l

L

category for spent fuel storage / decommissioning; expansion of cost recovery for certain reviews and inspections; and

)

elimination of " flat" license amendment fees for small materials licensees.

Under the rebaselining method, the agency determines the approximate costs attributable to each type of licensee such as power reactors or fuel facilities. These costs, less the estimated amounts to be recovered through fees for licensing and inspection services, comprise the annual fee.

The NRC last applied the' rebaselining method four years ago, in an effort to simplify and stabilize its fee program. The agency decided to rebaseline again this year, because of the proposed addition of a new fee class and other recent events, such as strategic planning efforts, downsizing, and the reorganization of resources. I I

Rebaselining this year would decrease annual fees for power reactors and some materials licensees, but increase them for other materials licensees such as solution-injection uranium t

mines, uranium mills, fuel facilities and transportation casks.

The other option -- to rebaseline with a cap -- would ensure that no licensee's fiscal year 1999 annual fee increases more ,

I than 50 percent over fiscal year 1998 amounts. '

t l

The new fee class introduced provides that a spent fuel f storage / decommissioning annual fee be assessed'to all power reactors regardless.of their~ operating status. Currently, annual fees are' assessed for power reactors with-facilities being 1

decommissioned and with spent fuel stored in a dry cask facility.

i But no-such fees are currently charged to licensees being

. decommissioned that store-fuel in a pool.

I Also under'the new proposal, fees would be' assessed for 1

document reviews, certain project manager activities, and all '

inspections, . including licensee-specific performance reviews, evaluations, and incident investigations.

For small materials licensees, " flat" fees are now assessed

)

based on the average time it takes to complete license amendment reviews. Under the proposed fee rule, " flat" amendment fees would be eliminated.to. increase efficiency, and instead the cost would be added.to these licensees' annual fees.

t Also in the 1999 proposed fee amendments is an increase in hourly rates for inspection and other professional staff-services.

The $4'49.6 million to be recovered from fees this year does not include $17 million appropriated from the Nuclear Waste Fund for high-level waste activities. Neither does it include $3.2 million appropriated for NRC's activities related to reviews for

F<

the Department of Energy. Funding for these activities is i

excluded from license feefrevenues by law. The total amount to be recovered in: fees i's about $5.2 million less than that recovered the previous' fiscal year.

' Written comments'on.the proposed amendments to Parts 170 and l 171 of the Commission's regulations should be received 30 days after. publication in the Federal Register. They should be addressed to the' Secretary, U.S. Nuclear Regulatory Commission, l .Washington,-D.C., 20555-0001, ATTN: Rulemakings and Adjudications {

staff. Comments may also be submitted via the NRC's electronic rulemaking website at http://www.nrc. gov. Select "rulemaking" from the' tool bar and then "rulemaking forum."

Because.the agency is soliciting comments on two potential fee schedules for FY 1999, for this year only, the final rule

.will.be mailed to all licensees. The final rule will also be published in the Federal Register and will be available on the internet, at http://ruleforum.llnl. gov /.

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