ML25063A152
| ML25063A152 | |
| Person / Time | |
|---|---|
| Issue date: | 03/04/2025 |
| From: | David Proulx NRC/OCFO/DB/BOB |
| To: | |
| References | |
| Download: ML25063A152 (1) | |
Text
FY 2025 Proposed Fee Rule Public Meeting March 6, 2025 10:00 a.m. - 12:00 p.m. ET
PUBLIC MEETING AGENDA
Notice of Meeting on the FY 2025 Proposed Fee Rule March 6, 2025, 10:00 A.M. to 12:00 P.M. ET Virtual Teams Meeting link Call in number: 301-576-2978; Conference ID: 55816390#
2 Time Topic Speaker 10:00 AM Welcome Sophie Holiday (Facilitator) 10:10 AM Opening Remarks Owen Barwell 10:15 AM FY 2025 Proposed Fee Rule Overview:
FY 2025 Budgetary Considerations Marc Neville FY 2025 Fees Overview Christine Galster Operating Power Reactors Fee Class Michele Sampson Spent Fuel Storage/Reactor Decommissioning Fee Class Cinthya Román Cuevas Fuel Facilities Fee Class Kimyata Morgan-Butler 11:05 AM ADVANCE Act Christine Galster 11:20 AM Q&A Session Sophie Holiday (Facilitator) 11:50 AM How to Submit Public Comments Sophie Holiday (Facilitator) 11:55 AM CFO Closing Remarks Owen Barwell 12:00 PM Meeting Adjourned
FY 2025 Proposed Fee Rule Owen Barwell Chief Financial Officer 3
Fee Rule Comments 4
In scope comments:
Focused on methodology for calculating fees Changes to fee regulations Fee schedules Out of scope comments:
General comments on agency efficiencies Changes to regulatory process Public participation in budget formulation Use the appropriate venue to receive timely response
FY 2025 Budgetary Considerations Marcellino (Marc) Neville, Director Division of Budget Office of the Chief Financial Officer 5
FY 2025 Budget Request 6
Major Program FY 2024 Enacted Budget FY 2025 Budget Request Changes from FY 2024
$M*
$M*
$M*
FTE Nuclear Reactor Safety 522.0 1,797.3 503.5 1,743.8 (18.5)
(53.5)
Nuclear Materials and Waste Safety 150.8 480.6 144.9 484.1 (5.8) 3.5 Corporate Support 301.6 588.0 317.0 597.0 15.5 9.0 University Nuclear Leadership Program 16.0 0.0 10.0 0.0 (6.0) 0.0 Subtotal
$990.3 2,865.9
$975.4 2,824.9
($15.0)
(41.0)
Office of the Inspector General 15.8 63.0 19.6 73.0 3.8 10.0 Total
$1,006.1 2,928.9
$994.9 2,897.9
($11.1)
(31.0)
Carryover (62.0) 0.0 (20.0) 0.0 42.0 0.0 Agency Total
$944.1 2,928.9
$974.9 2,897.9
$30.9 (31.0)
- $M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.
- $20.0 million in carryover is applied to offset the Nuclear Reactor Safety budget
$30.9M 31.0 FTE
Net Budget Authority 7
FY 2024 Enacted Budget FY 2025 Budget Request Changes from FY 2024
$M*
$M*
$M*
Total Budget Authority
$944.1
$974.9
$30.8 Offsetting Fees 807.0 823.9 16.9 Net Budget Authority
$137.1
$151.0
$13.9
- $M includes FTE costs as well as contract support and travel. Numbers may not add due to rounding.
$13.9M
Budget Development 8
Workload Forecasting
- Identification of significant workload drivers
- Analysis of historical data and trending
- Communications with stakeholders Estimate Level of Effort
- Estimate level of effort for major projects
- Yearly recurring activities Workload Forecasting Estimate Level of Effort Estimate level of effort for major projects Yearly recurring activities Identification of significant workload drivers Analysis of historical data and trending Communications with stakeholders
Budget Development and Fee Estimates 9
- Budget request and annual fee estimates are developed on different timelines.
- 10 CFR Part 170 estimated billings vary from the budgeted level of effort due to fact of life changes.
- The estimated billings for a fee class, in turn, affects the 10 CFR Part 171 annual fees for that fee class because the more the NRC collects in 10 CFR Part 170 billings, the less it must collect in annual fees.
Budget and the Fee Rule Making the Connection:
Budget Allocation For Fees Crosswalk of Business Lines Allocation to Fee Classes*
10 Business Line License Fee Class Operating Reactors Operating Power Reactors, Non-Power Production or Utilization Facilities (NPUF), Import/Export**
New Reactors Operating Power Reactors Fuel Facilities Fuel Facilities Nuclear Materials Users Materials Users, Import/Export**
Spent Fuel Storage and Transportation Spent Fuel Storage/Reactor Decommissioning, Transportation Decommissioning and Low-level Waste Spent Fuel Storage/Reactor Decommissioning, Uranium Recovery, Rare Earth
- Delineates where the majority portion of a Business Lines direct resources are allocated to fee classes.
- Since FY 2022, the resources for Import/Export activities have been identified by the Commission as a fee-relief activity to be excluded from fee-recovery.
FY 2025 Fee Overview Christine Galster, Senior Accountant License Fee Policy Team Division of Budget Office of the Chief Financial Officer 11
Statutory and Regulatory Framework Independent Offices Appropriation Act (IOAA),1952
- Regulations promulgated under 10 CFR Part 171
- Limits power reactor annual fees at the FY 2015 annual fee amount, adjusted for inflation
- Recover, to the maximum extent practicable, approximately 100% of its annual budget:
oLESS activities NEIMA designates as excluded from recovery Including any fee-relief activities identified by the Commission Nuclear Energy Innovation and Modernization Act (NEIMA) of 2018:
Annual Appropriation 12
Budget Request and Fee Recovery for the FY 2025 Proposed Rule
[$ in Millions]
13 Total Budget Authority in Budget Request Less : Excluded Activities: GHLS, WIR, DNFSB, ARRI and FEE-RELIEF Balance Fee Recovery Rate for FY 2025 Total Amount to be Recovered for FY 2025
$ 974.9 151.0
$ 823.9 x 100.0%
$ 823.9
+ 2.1 Adjustments (Part 171 Collections)
Adjusted Recovery Amount Less: Estimated Part 170 Billings Part 171 Fee Collections Required
$ 826.1
- 216.0
$ 610.1 Fee-Relief Activities:
Statutory Activities:
Total Budget Authority Excluded Activities (Reducing Fee Recovery) 104.7M 46.3M
$ 151.0M
Professional Hourly Rate Methodology for 10 CFR Part 170 Fees FY 2025 Proposed Fee Rule 14 Mission Direct Program Salaries and Benefits Mission Indirect Program Support Agency Support: Corporate Support and IG Subtotal:
Less: Offsetting Receipts Total Budgeted Resources Included in Professional Hourly Rate
$371.4M 117.8M 333.1M
$822.3M 0.0M
$822.3M Mission Direct FTEs:
Mission Direct FTEs Productive Hours:
Professional Hourly Rate 1,687.4 FTEs 1,507 Hours
$323 Full Cost FTE Rate = Subtotal divided by Mission Direct FTE $487,342
- Methodology based on OMB circular A-25 User Charges
- Budget included in Hourly Rate calculation excludes Direct Program Contract Costs generally billed to recipients separately
Hourly Rate Determination 10 CFR Part 170 Professional Hourly Rate Formula 15 Budgetary Resources Mission Direct FTE Converted to Hours
= Part 170 Hourly Rate FY 2025 Proposed Fee Rule:
$822.3 million (1,687 x 1,507) = $323 hourly rate Productive Hours Total hours = 2087 Less:
- Training hours
- Holiday hours
- Vacation hours
- Travel hours Direct FTE Productive Hours FY 2024 Final Fee Rule:
$816.9 million (1,720 x 1,500) = $317 effective hourly rate
Proposed Total Annual Fee Recovery Summary 16
- $M includes FTE costs as well as contract support and travel.
This table is representative of the total proposed annual fee recovery for each fee class and does not reflect annual fees per individual licensee.
Fee Class FY 2024 Total Annual Fee Recovery FY 2025 Proposed Total Annual Fee Recovery
$M*
$M*
Operating Power Reactors 501.6 503.8 Spent Fuel/Reactor Decommissioning 40.4 42.3 Fuel Facilities 25.3 25.3 Uranium Recovery 0.3 0.4 Non-Power Production or Utilization Facilities 0.3 0.2 Materials Users 46.3 45.1 Transportation 2.3
2.6 Overview
Operating Power Reactors Fee Class Michele Sampson, Director Division of New and Renewed Licenses Office of Nuclear Reactor Regulation 17
Fee Calculation:
Operating Power Reactors Fee Class
[$ in Millions]
18
- There is an increase in the total number of operating power reactors from 93 to 94 due to Vogtle Electric Generating Plant, Unit 4 joining the fleet.
Fee Class Components FY 2021 FY 2022 FY 2023 FY 2024 FY 2025P Budgeted Resources
$611.8
$645.4
$665.3
$665.0
$683.6 10 CFR Part 170 Estimated Billings (161.6)
(165.8)
(158.9)
(168.3)
(185.7)
Adjustments:
Generic Transportation, LLW Surcharge and Billing Adjustment (8.6) 0.8 4.3 5.0 5.9 10 CFR Part 171 Annual Fee Resources 441.7 480.3 510.7 501.6 503.8 Licensees 93 93 93 94*
94 Annual Fee per Operating Power Reactor $4,749,000
$5,165,000
$5,492,000
$5,336,000
$5,359,000
Operating Power Reactors Fee Class -
Drivers for Proposed Fee Changes Compared to FY 2024 19
- Increase in 10 CFR Part 170 Estimated Billings due to:
- 10 CFR Part 50 construction permit application reviews
- Operating Reactor licensing activities
- Increase in Proposed Annual Fee due to:
- Increase in budgeted resources for the fee class to support an increase in salaries and benefits and mission-critical system changes to the Reactor Program System
Overview:
Spent Fuel Storage/Reactor Decommissioning Fee Class Cinthya Román Cuevas, Deputy Director Division of Fuel Management Office of Nuclear Material Safety and Safeguards 20
Fee Calculation:
Spent Fuel Storage/Reactor Decommissioning Fee Class
[$ in Millions]
21
- There is an increase in the total number of licensees with the addition of Vogtle Electric Generating Plant, Unit 4.
Fee Class Components FY 2021 FY 2022 FY 2023 FY 2024 FY 2025P Budgeted Resources
$42.2
$40.4
$42.9
$50.4
$51.3 10 CFR Part 170 Estimated Billings (13.8)
(13.8)
(12.4)
(12.3)
(11.4)
Adjustments:
Generic Transportation, LLW Surcharge and Billing Adjustment 0.5 1.1 1.6 2.4 2.4 10 CFR Part 171 Annual Fee Resources 28.9 27.7 32.1 40.4 42.3 Spent Fuel Storage Facilities 122 122 123 124*
124 Annual Fee per Facility
$237,000
$227,000
$261,000
$326,000
$341,000
Spent Fuel Storage/Reactor Decommissioning Fee Class -
Drivers for Proposed Fee Changes Compared to FY 2024 22
- Decrease in 10 CFR Part 170 Estimated Billings due to:
- Withdrawal of two license termination plan applications
- Decrease in decommissioning inspection activities at multiple sites
- Reduction in the number of licensing activities for storage license renewals
- Increase in Proposed Annual Fee due to:
- Increase in budgeted resources for the fee class
- Increase in salary and benefits
- Expected increase in decommissioning licensing activities associated with accelerated decommissioning schedules
- Decrease in 10 CFR Part 170 estimated billings
Overview:
Fuel Facilities Fee Class Kimyata Morgan-Butler, Deputy Director Division of Fuel Management Office of Nuclear Material Safety and Safeguards 23
Fee Calculation:
Fuel Facilities Fee Class
[$ in Millions]
24 Fee Class Components FY 2021 FY 2022 FY 2023 FY 2024 FY 2025P Budgeted Resources
$23.3
$22.4
$26.6
$30.9
$32.1 10 CFR Part 170 Estimated Billings (7.3)
(8.0)
(9.2)
(8.7)
(10.1)
Adjustments:
Generic Transportation and Billing Adjustment 1.5 2.0 2.3 3.1 3.3 10 CFR Part 171 Annual Fee Resources 17.5 16.4 19.7 25.3 25.3 Licensees 8
8 8
8 8
Average Percentage Change (8.4%)
(6.6%)
+18.5%
+24.4%
0%
Fuel Facilities Fee Class -
Drivers for Proposed Fee Changes Compared to FY 2024 25
- Increase in 10 CFR Part 170 Estimated Billings due to:
- Review of several expected licensing actions, including two for an increase in enrichment activities
- Continued review of the TRISO-X, LLC, fuel fabrication facility application
- Support the acceptance review of a new fuel facility application
- No Change in Proposed Annual Fee compared to FY 2024
Policy Change:
Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy Act of 2024 (ADVANCE Act) -
Reduced Hourly Rate 26 Christine Galster, Senior Accountant License Fee Policy Team Division of Budget Office of the Chief Financial Officer
ADVANCE Act Section 201 The ADVANCE Act requires a reduced hourly rate for Part 170 fees for advanced nuclear reactor applicants and advanced nuclear reactor pre-applicants for certain activities.
This presentation focuses on:
- Who would qualify?
- What kinds of activities would qualify?
- How would the reduced hourly rate be calculated?
Reduced Hourly Rate for Advanced Nuclear Reactor Applicants and Pre-applicants
- For more information on the ADVANCE Act, please see our public website: https://www.nrc.gov/about-nrc/governing-laws/advance-act.html Effective Date FY 2026; October 1, 2025 27
ADVANCE Act Reduced Hourly Rate Who Would Qualify?
28 Advanced nuclear reactor applicant:
an entity that has submitted a Qualifying License Application Advanced nuclear reactor pre-applicant:
an entity that has submitted a Qualifying Licensing Project Plan for the purpose of submitting a future license application To qualify, the application must:
- 1. be for an advanced nuclear reactor (defined in NEIMA);
- 2. be for an operating license, combined license, or manufacturing license under the Atomic Energy Act (AEA);
- 3. not be for an amendment to or renewal of an existing license.
Reduced Hourly Rate What Activities Would Qualify?
29 Advanced nuclear reactor applicant
- Fees assessed relating to the review of a Qualifying License Applicationthat is an application for:
- an advanced nuclear reactor and
- a license for an operating license, combined license, or manufacturing license.
Advanced nuclear reactor pre-applicant
- Fees assessed relating to the review of submitted materials as described in a Qualifying Licensing Project Plan
ADVANCE Act Reduced Hourly Rate Comparison of Hourly Rate Budgetary Resources 30 Full Cost Professional Hourly Rate Misson-Direct Salaries & Benefits Nuclear Reactor Safety Program Nuclear Materials & Waste Safety Program Misson-Indirect Support Nuclear Reactor Safety Program Nuclear Materials & Waste Safety Program Agency Support Corporate Support Inspector General ADVANCE Act Reduced Hourly Rate Misson-Direct Salaries & Benefits Nuclear Reactor Safety Program
ADVANCE Act Reduced Hourly Rate 10 CFR Part 170 Reduced Hourly Rate Formula 31 Mission-Direct Nuclear Reactor Safety Program Salaries and Benefits Mission-Indirect Program Support Agency Support Subtotal:
Less: Offsetting Receipts Total Budgeted Resources Included in the Reduced Hourly Rate
$289.0M
$0M
$0M
$289.0M
- 0.0M
$289.0M Mission-Direct Nuclear Reactor Safety Program FTEs:
Annual Mission-Direct FTE Productive Hours:
Reduced Hourly Rate 1,309.3 FTEs 1,507 Hours
$146
- Budget included in Hourly Rate calculation excludes mission-direct contract resources, which are generally billed to licensees separately
$289.0 million (1,309.3 x 1,507)
= $146 Reduced Hourly Rate
Questions and Answers 32
Public Comments Submission End of Comment Period: March 21, 2025 33 Federal Rulemaking Website
- Docket ID NRC-2023-0069
- Address questions to Helen Chang; telephone: 301-415-3228; e-mail:
Helen.Chang@nrc.gov Email Comments
- Rulemaking.Comments@nrc.gov Fax Comments
- Secretary, U.S. Nuclear Regulatory Commission at 301-415-1101
Public Comments Submission (cont.)
34 Mail Comments
- Secretary, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, ATTN: Rulemakings and Adjudications Staff Hand Deliver
- 11555 Rockville Pike, Rockville, Maryland 20852, between 7:30 a.m. and 4:15 p.m. eastern time, Federal workdays; telephone: 301-415-1677 Further Information
- Julio Areas, License Fee Policy Team Lead (Acting), Office of the Chief Financial Officer; telephone: 301-415-6092, e-mail: Julio.Areas@nrc.gov
CFO Closing Remarks 35
Acronyms 36 AEA Atomic Energy Act ADVANCE Act Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy Act of 2024 ARPA-E Advanced Research Projects Agency-Energy ARRI Advanced Reactor Regulatory Infrastructure ATF Accident Tolerant Fuel CFR Code of Federal Regulations DARPA Defense Advanced Research Projects Agency Digital I&C Digital Instrumentation and Control DNFSB Defense Nuclear Facilities Safety Board FTE Full-Time Equivalent GHLS Generic Homeland Security GTCM Greater than Critical Mass HALEU High Assay Low-Enrichment Uranium IOAA Independent Offices Appropriation Act, 1952 IT Information Technology LLW Low-Level Waste NEIMA Nuclear Energy Innovation and Modernization Act SPRD Spent Fuel Storage/Reactor Decommissioning SDA Standard Design Approval WIR Waste Incidental to Reprocessing