NRC-2021-0024, Comment (004) from Richard J. Freudenberger on Behalf of BWXT Nuclear Operations Group, Inc. - Lynchburg on PR-170 and 171 - Revision of Fee Schedules; Fee Recovery for Fiscal Year 2023
| ML23093A189 | |
| Person / Time | |
|---|---|
| Site: | BWX Technologies |
| Issue date: | 03/31/2023 |
| From: | Freudenberger R BWXT, BWXT |
| To: | Dawn Forder NRC/SECY/RAS |
| References | |
| NRC-2021-0024, 88FR13357 00004, 23-018, PR-170, PR-171 | |
| Download: ML23093A189 (1) | |
Text
{{#Wiki_filter:4/3/23, 2:06 PM blob:https://www.fdms.gov/2392ada3-a074-4df9-821a-9fbca5f069a8
As of: 4/3/23, 2:06 PM Received: April 03, 2023 PUBLIC SUBMISSION Status: Pending_Post Tracking No. lg0-z0hx-g8ie Comments Due: April 03, 2023 Submission Type: Web
Docket: NRC-2021-0024 Revision of Fee Schedules: Fee Recovery for FY 2023
Comment On: NRC-2021-0024-0001 Revision of Fee Schedules; Fee Recovery for Fiscal Year 2023
Document: NRC-2021-0024-DRAFT-0002 Comment on FR Doc # 2023-03940
Submitter Information
Email: dlashworth@bwxt.com Organization: BWXT Nuclear Operations Group, Inc. (Lynchburg, VA - SNM 42)
General Comment
See attached file(s)
Attachments
23-018 Comments on Proposed Revision of Fee Schedules and Fee Recovery for Fiscal Year 2023
blob:https://www.fdms.gov/2392ada3-a074-4df9-821a-9fbca5f069a8 1/1 BWX Technologies, Inc.
March 31, 2022 23-018
Ms. Dawn Forcier U.S. Nuclear Regulatory Commission Washington, DC 20555-0001, ATTN: Rulemakings and Adjudications Staff
Reference:
License SNM-42, Docket 70-27
Subject:
Comments on Proposed Revision of Fee Schedules and Fee Recovery for Fiscal Year 2023, 10 CFR Parts 170 and 171 (NRC Docket ID: NRC-2021-0024)
Dear Ms. Forder:
BWXT Nuclear Operations Group, Inc. - Lynchburg (BWXT) appreciates the opportunity to provide the following comments for the U.S. Nuclear Regulatory Commission (NRC) staff's consideration as it finalizes the revision of fee schedules and recovery for fiscal year 2023, referred to as the annual fee rule.
In review of the Federal Register Notice (FRN) and statements/discussions during the March 21, 2023 public meeting, the NRC states that increased salaries and benefits are the primary cause for annual fee increases across the agency. The fiscal year 2023 proposed fee rule reflects a total budget authority for the agency in the amount of $927.2 million, which is an increase of $39.5 million from fiscal year 2022. The proposed fee rule highlights a $802,000 increase in the annual license fee for our Category 1 fuel cycle facility in Lynchburg, VA. The 18.5% increase in our annual fee is a significant escalation in comparison to the agency's budgeted increase of 4.45% and multiples higher than the other business lines.
In fiscal years 2019 through 2022, the four prior years, fuel cycle facilities' annual fees decreased to more accurately reflect the number of operating facilities, the corresponding workload, and our risk profile. During this time, our fee (Category 1 fuel cycle facility) fell below that of an operating commercial power reactor, which is commensurate with the business line's potential risk to the environment and public. However, this year's proposed fee for BWXT is nearly that of an operating commercial power reactor and that business line is only proposed a 6.2% annual fee increase. Knowingly, the Nuclear Energy Innovation and Modernization Act (NEIMA) of 2018 limits power reactor annual fees to the FY 2015 amount, adjusted each year thereafter for inflation only.
The foundation for the 18.5% annual fee increase provided in the FRN and presented during the March 21, 2023 public meeting is not sufficient. Specifically, the discussion on page 13364 and slide 28 identifies several contributing factors; almost all of which are licensing or inspection activities that would be billable under Part 170, not Part 171, to specific applicants or licensees. Likewise, NRC staff stated during the public meeting that previous workload forecasted for the fuel facility business line did not mature and that preparation costs for that "anticipated" work
BWXT Nuclear Operations Group, Inc. People Strong
2 016 Mt Athas Road Lynchburg, VA 24504 USA I NNOVATION DRIVEN > t: +1.4 34.522.6000 www.b wxt. co m were factors leading to the increase. As a licensee who pays for the agency's services, a detailed, transparent explanation of these comments is deserved. BWXT is requesting the NRC provide a more coherent justification to the basis of the 18.5% increase that could be used to explain the increased cost of our products to our customers. Furthermore, BWXT asks that you re-evaluate the annual license fee for Category 1 fuel cycle facilities prior to finalizing the rule, considering there is no additional planned safety or safeguards effort at our facility.
If you have questions or require additional information, please contact Daniel Ashworth, Manager, Licensing & Safety Analysis, at dlashworth @ bwxt.com or 434-522-5472.
Sincerely, lf...L.-{ ? :J-1--ly-- Richard. J. Freudenberger Manager, Environment, Safety, Health & Safeguards BWXT Nuclear Operations Group, Inc. - Lynchburg
cc: Anthony Rossi, Office of the Chief Financial Officer U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 Anthon y.Rossi @ nrc. g ov
Mr. James Downs Division of Fuel Cycle Safety, Safeguards, and Environmental Review Office of Nuclear Material Safety and Safeguards U.S. Nuclear Regulatory Commission Washington, DC 2055~001 James.Downs @ nrc. g ov}}