consideration of michigan pursuing an nrc agreement a discussion with stakeholders march 2, 2007
TRANSCRIPT
Consideration of Consideration of Michigan Michigan
Pursuing an NRC Pursuing an NRC Agreement Agreement A Discussion with A Discussion with
StakeholdersStakeholdersMarch 2, 2007March 2, 2007
Presenters:Presenters:
Jim Sygo, Deputy Director, DEQJim Sygo, Deputy Director, DEQ
Jan Christensen, Deputy Jan Christensen, Deputy Director, DCHDirector, DCH
George Bruchmann, DEQGeorge Bruchmann, DEQ
Thor Strong, DEQThor Strong, DEQ
Sheri Minnick, NRCSheri Minnick, NRC
DEQ/DCH Work GroupDEQ/DCH Work Group
DEQDEQ
Thor StrongThor Strong
517-241-1252517-241-1252
Robert Robert SkowronekSkowronek
517-241-1253517-241-1253
T.R. WentworthT.R. Wentworth
517-241-1438517-241-1438
DCHDCH
Tom FreeburyTom Freebury
517-241-1968517-241-1968
Bruce MatkovichBruce Matkovich
517-241-1993517-241-1993
Don ParryDon Parry
517-241-1986517-241-1986
Goals for TodayGoals for Today
Present Case for an Agreement StatePresent Case for an Agreement State Provide Stakeholders an Opportunity Provide Stakeholders an Opportunity
for Commentfor Comment Solicit Stakeholder Support and Solicit Stakeholder Support and
CommitmentCommitment Obtain Volunteers for an Advisory Obtain Volunteers for an Advisory
CommitteeCommittee
What is an Agreement What is an Agreement State?State?
Section 274(b) of Atomic Energy Act Section 274(b) of Atomic Energy Act provides for transfer of certain NRC provides for transfer of certain NRC authority to states.authority to states.
State chooses to assume authority over State chooses to assume authority over any of these categories:any of these categories: Radioactive Materials - Section 11e(1)(2)(3)(4)Radioactive Materials - Section 11e(1)(2)(3)(4) Source MaterialsSource Materials Special Nuclear Materials (small quantities)Special Nuclear Materials (small quantities) Low-Level Radioactive Waste DisposalLow-Level Radioactive Waste Disposal Sealed Sources and Device Safety EvaluationsSealed Sources and Device Safety Evaluations
What is an Agreement What is an Agreement State?State?
Section 274(b) of Atomic Energy Act Section 274(b) of Atomic Energy Act provides for transfer of certain NRC provides for transfer of certain NRC authority to states.authority to states.
State chooses to assume authority over State chooses to assume authority over any of these categories:any of these categories: Radioactive Materials - Section 11e(1Radioactive Materials - Section 11e(1) ) (2) (2) (3) (3)
(4)(4) Source MaterialsSource Materials Special Nuclear Materials (small quantities)Special Nuclear Materials (small quantities) Low-Level Radioactive Waste DisposalLow-Level Radioactive Waste Disposal Sealed Sources and Device Safety EvaluationsSealed Sources and Device Safety Evaluations
What is an Agreement What is an Agreement State?State?
For the categories included in For the categories included in Agreement:Agreement:
State becomes responsible for all State becomes responsible for all phases of regulatory oversight: phases of regulatory oversight: licensing, inspection, enforcement, licensing, inspection, enforcement, decommissioning;decommissioning;
State sets and retains own fees; State sets and retains own fees; NRC periodically evaluates state’s NRC periodically evaluates state’s
performance.performance.
AGREEMENT STATES
AGREEMENT STATES
AdvantagesAdvantages
To the Licensee:To the Licensee: Better service;Better service; Regulatory Agency more Regulatory Agency more
accessible and responsive;accessible and responsive; Regulatory authority centered Regulatory authority centered
in one agency, rather than in one agency, rather than two or three;two or three;
Reduced Annual Fees.Reduced Annual Fees.
AdvantagesAdvantages
To the State:To the State:Greater capability to deal Greater capability to deal
with all radiation issues, with all radiation issues, incidents, threats;incidents, threats;
Individual programs Individual programs strengthened;strengthened;
Fees remain in state.Fees remain in state.
Disadvantages Cited in Disadvantages Cited in Some Agreement StatesSome Agreement States
Fees not necessarily Fees not necessarily reduced for all licensees;reduced for all licensees;
Some Agreement States Some Agreement States have more restrictive rules;have more restrictive rules;
Growing pains;Growing pains;Lots of work!Lots of work!
How to Become an How to Become an Agreement StateAgreement State
Letter of Intent from the Letter of Intent from the GovernorGovernor
Statute/Rules Revisions needed Statute/Rules Revisions needed to meet NRC criteriato meet NRC criteria
Adequate StaffingAdequate Staffing Adequate Training and ExpertiseAdequate Training and Expertise 4-5 Year Process.4-5 Year Process.
Key Conditions for Proceeding Key Conditions for Proceeding With Agreement State ProposalWith Agreement State Proposal
Better protection of the public;Better protection of the public; Better responsiveness to licensees – Better responsiveness to licensees –
efficacy;efficacy; Better synergy of resources – efficiency;Better synergy of resources – efficiency; Operate program at a lower cost (than Operate program at a lower cost (than
NRC);NRC); Share cost savings with licensees as much Share cost savings with licensees as much
as possible.as possible.
Our Proposed StrategyOur Proposed Strategy
Time LineTime Line StaffingStaffing Agreement State Program Agreement State Program
Funding NeedsFunding Needs Program Development Program Development
Funding ConceptFunding Concept
TimelineTimelineAn aggressive timeline to finalize an An aggressive timeline to finalize an NRC Agreement in 4 – 5 years.NRC Agreement in 4 – 5 years.
Letter of Intent – May, 2007Letter of Intent – May, 2007 Introduction of Legislation – May, 2007Introduction of Legislation – May, 2007 Program Consolidation – late 2007Program Consolidation – late 2007 Submittal of Application – August, 2010Submittal of Application – August, 2010 Signing of an Agreement – Sept. 2011Signing of an Agreement – Sept. 2011
StaffingStaffing Adequate, well-trained staff is a Adequate, well-trained staff is a
prerequisite to signing an prerequisite to signing an AgreementAgreement
Current Program Staff: 3.5 FTEsCurrent Program Staff: 3.5 FTEs Projected Additional Program Staff: Projected Additional Program Staff:
10 FTEs (8 tech., 2 admin. support)10 FTEs (8 tech., 2 admin. support) 2.25 FTEs per 100 licensees;2.25 FTEs per 100 licensees; Added staff to be hired 2008-2011;Added staff to be hired 2008-2011; Tech. Staff must be trained prior to Tech. Staff must be trained prior to
submitting Agreement Application.submitting Agreement Application.
Program FinancingProgram Financing
Assure that a State Program Assure that a State Program can be conducted for lower can be conducted for lower costs than that of NRC’s.costs than that of NRC’s.
Other Agreement States Other Agreement States program costs are less than that program costs are less than that of NRC’s; annual fees often less;of NRC’s; annual fees often less;
Most licensees will pay less;Most licensees will pay less; Retain Small Entity discount and Retain Small Entity discount and
Academic Fee exemptions.Academic Fee exemptions.
$4,800
$3,641
$2,700
$1,762
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
MEDICAL PRIVATE PRACTICE -LIMITED
MEASURING SYSTEMS PORTABLEGAUGES
FY 2007 Annual Fees for NRC and the Average of Some Agreement States
NRC
Average of WI,OH, IA, MN
Comparison of FeesComparison of Fees(if Michigan was an Agreement (if Michigan was an Agreement
State)State)FeeFee
CategoryCategory
NRC FeeNRC Fee
20072007MI FeeMI Fee
2007 (est.)2007 (est.)
Medical Medical Broad Broad ScopeScope
$28,800$28,800 18,70018,700
NuclearNuclear
PharmacyPharmacy11,80011,800 7,7007,700
Med. Med. Private Private
PracticePractice
4,8004,800 3,1003,100
Program Start-up Program Start-up FundingFunding
Develop a Funding Mechanism Develop a Funding Mechanism that is limited, reasonable and that is limited, reasonable and equitable.equitable.
NRC provides no funding – State must NRC provides no funding – State must develop a functional and capable develop a functional and capable program before signing Agreement;program before signing Agreement;
State will not provide start-up funds;State will not provide start-up funds; Recommending a four year interim Recommending a four year interim
fee system.fee system.
Interim Fee StructureInterim Fee Structure
WI used a fixed percentage of WI used a fixed percentage of NRC fees each year for 4 years;NRC fees each year for 4 years;
We propose:We propose:Fixed fee for 4 years - based on Fixed fee for 4 years - based on
percentage of NRC fee in Year 1 percentage of NRC fee in Year 1 (2007)(2007)
Fee will generate $ Fee will generate $ 849,400/year 849,400/year
Interim FeeInterim Fee
NRC License NRC License CategoryCategory
2007 2007
NRC FeeNRC FeeInterim Interim
Fee Fee (39%)(39%)
Interim Interim Fee Fee
TotalTotal
Medical Medical Broad Broad ScopeScope
$28,800$28,800 11,20011,200 44,80044,800
Nuclear Nuclear
PharmacyPharmacy$11,800$11,800 4,6004,600 18,40018,400
Med. Med. Private Private PracticePractice
$4,800$4,800 1,9001,900 7,6007,600
Financial SummaryFinancial Summary
Assuming comparable cost increases Assuming comparable cost increases for both NRC and State, State fees in for both NRC and State, State fees in 2012 will be 32% less than 2012 will be 32% less than comparable NRC fees;comparable NRC fees;
Most licensees will recoup their Most licensees will recoup their interim fee expenditures in less than 4 interim fee expenditures in less than 4 years;years;
If NRC fees remained at 2007 levels, If NRC fees remained at 2007 levels, MI fees in 2012 would still be 9% less.MI fees in 2012 would still be 9% less.
TrainingTraining
Need to train staff quickly but Need to train staff quickly but fully.fully.
Use NRC courses as needed; take Use NRC courses as needed; take advantage of “space available” spots;advantage of “space available” spots;
Sponsor NRC courses in MichiganSponsor NRC courses in Michigan Shadow NRC inspectors – doing so now;Shadow NRC inspectors – doing so now; Visit other Agreement States;Visit other Agreement States; Work with MI licensees to identify other Work with MI licensees to identify other
opportunities.opportunities.
NRCNRC
Sheri MinnickSheri Minnick
Regional Government Regional Government Liaison Liaison Officer, Officer, Region Region 3, Lisle, IL3, Lisle, IL
630-829-9659630-829-9659
[email protected]@nrc.gov
Agreement State Agreement State QuestionsQuestions
Contact: Contact:
James Lynch, Regional James Lynch, Regional Agreement Agreement State Officer, State Officer, NRC Region 3NRC Region 3
630-829-9661630-829-9661
[email protected]@nrc.gov
Energy Policy Act of Energy Policy Act of 20052005
Contact: Contact:
Kevin Null, Senior Health Kevin Null, Senior Health Physicist, NRC Physicist, NRC
Region 3 Region 3
at 630-829-9854at 630-829-9854
[email protected]@nrc.gov
““I believe that all good things I believe that all good things come to those who wait – come to those who wait – provided they work provided they work feverishly while they are feverishly while they are waiting.”waiting.”
Dale KleinDale KleinNRC ChairmanNRC Chairman
Questions and Questions and DiscussionDiscussion