ML23254A399
| ML23254A399 | |
| Person / Time | |
|---|---|
| Issue date: | 10/03/2023 |
| From: | John Lubinski, Osborne H Office of Nuclear Material Safety and Safeguards, NRC/OCFO |
| To: | Schleuter J Nuclear Energy Institute |
| References | |
| Download: ML23254A399 (3) | |
Text
Janet R. Schlueter, Sr. Advisor, Fuel and Radiation Safety Nuclear Energy Institute 1201 F Street, NW, Suite 1100 Washington, DC 20004
SUBJECT:
RESPONSE TO NUCLEAR ENERGY INSTITUTES COMMENTS ON THE U.S. NUCLEAR REGULATORY COMMISSIONS FUEL CYCLE BUSINESS LINE BUDGET AND FEES FOR FISCAL YEARS 20232025
Dear Janet Schlueter:
We are responding to your letter dated August 1, 2023 (Agencywide Document Access Management System Accession No. ML23256A162), raising concerns about the fiscal year (FY) 20232025 budgets and the resulting fees for the fuel facility business line. Your letter outlines potential challenges with developing a budget given market uncertainties, and requests that the U.S. Nuclear Regulatory Commission (NRC) evaluate the appropriateness of the distribution of fees collected through Title 10 of the Code of Federal Regulations (10 CFR) Part 170 (fees for service) and 10 CFR Part 171 (annual fees) and the use of the effort factors matrix to distribute fees among fuel facility licensees.
The NRC is aware of the challenges with developing a budget given the uncertainty surrounding the timing of submittals and challenge the industry to determine ways to improve the timing and accuracy of information submitted to the NRC concerning anticipated work. We also recognize that despite our continued focus on budgeting challenges to ensure the budget aligns with the anticipated workload, changes in the timing of submittals can have real impacts on existing licensees and their annual fees. This was the case in FY2023, where delays to major licensing actions and commencement of construction inspections, combined with increases in salaries and benefits, contributed to the approximately 19 percent increase in annual fees. We welcome the industrys ideas on developing ways to mitigate these budget challenges and their resultant impact on fees. We would like to schedule a public meeting with the Nuclear Energy Institute and impacted stakeholders to hear your suggestions and proposed actions to improve the accuracy of information concerning anticipated work.
Since 2016, the NRC has focused on increased transparency in the assessment of fees for fuel facilities via interactive discussion at biennial stakeholder meetings as well as yearly public meetings held as part of the annual fee rule. As you mentioned in your letter, from FY2016-2020, the NRC made significant progress toward ensuring that budget resources for the fee class appropriately aligned with projected workload and that the program was focused on the most risk-significant activities. During this period, the number of licensees in the fee class and number of licensing actions were decreasing, the type of work was less complex than it is today, and the development of new guidance and changes to regulations was limited. The NRC also implemented the smarter licensing and inspection programs and resolved historical billing issues. To account for these changes, the NRC ensured that the budget reflected the decrease October 3, 2023
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in workload and was focused on the most risk-significant activities. Through this effort, the fee class saw a significant decrease in annual fees despite there being fewer licensees in the fee class, and the annual fees continued to decrease each year through FY2022.
The NRC has continued to apply these concepts to the development of the FY2023-2025 budgets. While the annual fees increased in FY2023, they are still significantly below the FY2016 fees. However, the landscape for fuel facilities has changed significantly. We are now in a period of significant growth to support deployment of accident tolerant fuel, advanced reactor fuel and enrichment of high assay low enriched uranium. This involves more complex licensing actions with uncertain submittal timelines for new fuel types, the first Category II facilities, related construction inspection activities, and the development of related inspection and licensing guidance. The timing of these activities can shift suddenly due to factors outside of the NRCs control.
The NRCs ability to budget accurately is dependent on the schedule that licensees and applicants provide concerning anticipated submittals. The NRC must budget for the anticipated workload to ensure it is prepared to license in a timely manner. The NRC is required by the Nuclear Energy Innovation and Modernization Act to recover 100 percent of its budget, minus excluded activities through fees. As a result, budgeted licensing and inspection work (Part 170 work) that is delayed can have an impact on fees by shifting these resources to recovery through annual fees. We welcome the industrys ideas on ways to improve the accuracy of information concerning anticipated work.
If you have any further questions or need additional information, please contact us or Shana Helton, Director of the Division of Fuel Management, at (301) 2879104.
Sincerely, John W. Lubinski, Director Office of Nuclear Material Safety and Safeguards Howard K. Osborne Chief Financial Officer Office of the Chief Financial Officer Signed by Lubinski, John on 10/02/23 Signed by Osborne, Howard on 10/03/23
J. Schlueter 3
SUBJECT:
RESPONSE TO NUCLEAR ENERGY INSTITUTES COMMENTS ON THE U.S.
NUCLEAR REGULATORY COMMISSIONS FUEL CYCLE BUSINESS LINE BUDGET AND FEES FOR FISCAL YEARS 20232025 DATED October 3, 2023 DISTRIBUTION:
Public RLewis, NMSS CSafford, NMSS JZimmerman, NMSS JTobin, NMSS RAllwein, OCFO JCorbett, OCFO AMasters, RII NCoovert, RII ADAMS Accession Number: ML23254A399
- via email OFFICE NMSS/DFM/
FFLB NMSS/DFM/
FFLB NMSS/DFM/F FLB OCFO/DOB/
LFPT NMSS/DFM NAME JTobin JGoodridge SLav ARossi CSafford for SHelton DATE 09/18/2023 9/19/2023 9/20/2023 9/21/2023 9/22/2023 OFFICE OCFO/DOB NMSS Tech Editor NMSS OCFO NAME JShay MPringle JLubinski HOsborne DATE 9/22/2023 9/25/2023 10/02/2023 10/03/2023 OFFICIAL RECORD COPY