FR 2021-03282

The proposed rule from the U.S. Nuclear Regulatory Commission (NRC) details changes to various fee structures associated with nuclear licenses for the fiscal year 2021. This proposal arises from the requirements of the Nuclear Energy Innovation and Modernization Act (NEIMA), which compels the NRC to recover nearly 100% of its annual budget through these fees. The document outlines proposed amendments to existing fee structures including licensing, inspection, and annual fees. Additionally, there is a focus on improving the process for invoicing and the dispute resolution process for any errors in invoiced service fees. The NRC seeks public comments on these changes by March 24, 2021.

General Summary

The document outlines significant changes to how the NRC will assess and recover various fees from its license holders, which is expected to encompass nearly all of its operating costs for the fiscal year 2021. The amendments are crafted in response to NEIMA, suggesting structural changes in the NRC's approach to budgeting and financial management. Key aspects include introducing clearer processes for disputing fees and moving towards electronic billing systems to enhance transparency. Major adjustments are also illustrated in small entity fees—a sector of particular interest for its potential impact on smaller businesses.

Significant Issues and Concerns

1. Complex Language: The document uses dense legal and regulatory language, which could obscure its understanding for laypersons. Simplification or clear summaries are vital for public comprehension.

2. Increasing Costs: The professional hourly rate sees a hike from $279 to $288 without detailed reference to how efficiency improvement or cost control measures have been accounted for.

3. Ambiguous Exclusions: A notable sum ($123.0 million) is excluded from fee recovery requirements with limited justification provided, leading to possible misunderstandings regarding the NRC's budgeting transparency.

4. Impact on Small Entities: The adjustments in fees for small businesses, including an increase in small entity fees, may disproportionately affect these stakeholders. Clearer communication of the rationale behind these increases is necessary.

5. Stakeholder Feedback: The revisions to invoicing and dispute procedure could benefit from further stakeholder input to ensure the changes are fair and address potential concerns effectively.

Potential Impacts on the Public and Stakeholders

Public Broadly: For the general public, especially those not directly involved with nuclear regulation, this document may seem distant. However, the broader implication lies in maintaining safe nuclear operations and managing environmental concerns, funded through these fees. Understanding how these fee structures influence the NRC’s ability to operate effectively could reassure citizens about regulatory oversight and national safety.

Specific Stakeholders:

• License Holders: These stakeholders will be directly affected by the increased fees and revised invoicing processes. The increase in operational costs could impact their financial planning and operations. Furthermore, the shift to electronic billing systems, although aimed at increasing transparency, raises concerns about cybersecurity and whether all licensees have equal access to digital resources.

• Small Businesses: The increased fees for small entities could represent a significant financial burden, potentially hampering their participation or continuation in the regulatory system. Justifications for these increases, along with strategic impact assessments, are crucial for acceptance.

• General Public and Environment: A potentially positive outcome from these changes is enhanced safety and efficiency in nuclear operations if these funds are employed effectively by the NRC. Yet, skepticism around the transparency of financial allocations and spending may necessitate public assurance through clear, understandable communication.

In conclusion, while the proposed changes aim to bring the NRC into compliance with federal legislation and modernize its financial practices, addressing language complexity, fiscal impacts, and stakeholder involvement are crucial to achieving a balanced and effective outcome.

The document outlines a proposed revision in the U.S. Nuclear Regulatory Commission’s (NRC) fee schedules for fiscal year 2021, with particular emphasis on the implementation of the Nuclear Energy Innovation and Modernization Act (NEIMA). The key financial components are critically analyzed below:

Total Budget and Fee Recovery

For fiscal year 2021, the NRC has proposed a total budget authority of $844.4 million, representing a decrease of $11.2 million from the previous year. The document sets forth the requirement to recover approximately 100 percent of the annual budget, except for certain excluded activities. The exclusions amount to $123.0 million, covering fee-relief activities, regulatory infrastructure development for advanced reactors, and other specific activities. While the exclusions are noted, the document could benefit from a more detailed breakdown and justification of these exclusions to provide clarity on why these costs are not subject to fee recovery.

Revenue Sources

The NRC anticipates recovering $708.8 million through fees in FY 2021, distributed as $185.9 million through service fees (10 CFR part 170) and $522.9 million from annual fees (10 CFR part 171). This financial distribution shows a strategic allocation to recover a significant portion of the operating budget from beneficiaries of specific services. However, concerns arise as to whether this distribution equitably reflects the cost incurred by the NRC and if it might disproportionately impact smaller entities, particularly with the increase in small entity fees.

Professional Hourly Rate Increase

The NRC proposes to raise its professional hourly rate from $279 to $288. This increase, attributed to a rise in budgetary resources and a reduction in mission-direct full-time equivalents, highlights a cost increase in human resources. The increase is marginally justified by referencing federal pay raises, yet further details could be provided on potential efficiency improvements to offset these costs.

Impact on Small Entities

The document suggests increasing the upper tier small entity fee from $4,500 to $4,900 and the lower tier from $900 to $1,000. This adjustment could present a considerable burden on small businesses, especially since the rise in fees represents a notable percentage increase. This change could amplify existing issues about the fairness and proportional impact of fee structures on smaller licensees, requiring more extensive justification and potentially a reconsideration of the increase in the face of economic pressures.

Annual Fees Allocation

The proposals detail new annual fee arrangements for various sectors including power reactors, spent fuel storage, and materials users, among others. For example, each operating power reactor has an annual fee of $4,804,000 complemented by an additional spent fuel storage fee of $246,000. These allocations aim to distribute costs based on the perceived regulatory effort required for each license type; however, they may inadvertently increase financial strain on smaller players within these categories without concurrent demonstrations of value or enhanced service delivery.

In summary, the financial references within the document highlight several key areas for improvement, especially regarding transparency, justification for increased costs, and equitable treatment of all stakeholders. There is a need for better clarity on the financial rationale behind exclusions, the fee increases, and the impacts on small entities to ensure a balanced and fair financial strategy by the NRC.