Consideration of Michigan Pursuing an NRC Agreement

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Consideration of Michigan Pursuing an NRC
Agreement

• A Discussion with Stakeholders
• March 2, 2007

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• Presenters
• Jim Sygo, Deputy Director, DEQ
• Jan Christensen, Deputy Director, DCH
• George Bruchmann, DEQ
• Thor Strong, DEQ
• Sheri Minnick, NRC

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DEQ/DCH Work Group

• DEQ
• Thor Strong
• 517-241-1252
• Robert Skowronek
• 517-241-1253
• T.R. Wentworth
• 517-241-1438

• DCH
• Tom Freebury
• 517-241-1968
• Bruce Matkovich
• 517-241-1993
• Don Parry
• 517-241-1986

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• Goals for Today
• Present Case for an Agreement State
• Provide Stakeholders an Opportunity for Comment
• Solicit Stakeholder Support and Commitment
• Obtain Volunteers for an Advisory Committee

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What is an Agreement State?

• Section 274(b) of Atomic Energy Act provides for
  transfer of certain NRC authority to states.
• State chooses to assume authority over any of
  these categories
• Radioactive Materials - Section 11e(1)(2)(3)(4)
• Source Materials
• Special Nuclear Materials (small quantities)
• Low-Level Radioactive Waste Disposal
• Sealed Sources and Device Safety Evaluations

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What is an Agreement State?

• Section 274(b) of Atomic Energy Act provides for
  transfer of certain NRC authority to states.
• State chooses to assume authority over any of
  these categories
• Radioactive Materials - Section 11e(1) (2) (3)
  (4)
• Source Materials
• Special Nuclear Materials (small quantities)
• Low-Level Radioactive Waste Disposal
• Sealed Sources and Device Safety Evaluations

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What is an Agreement State?

• For the categories included in Agreement
• State becomes responsible for all phases of
  regulatory oversight licensing, inspection,
  enforcement, decommissioning
• State sets and retains own fees
• NRC periodically evaluates states performance.

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AGREEMENT STATES                                
                                                  
                                                  
                                                  
                                                  
                                             
AGREEMENT STATES
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Advantages

• To the Licensee
• Better service
• Regulatory Agency more accessible and responsive
• Regulatory authority centered in one agency,
  rather than two or three
• Reduced Annual Fees.

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Advantages

• To the State
• Greater capability to deal with all radiation
  issues, incidents, threats
• Individual programs strengthened
• Fees remain in state.

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Disadvantages Cited in Some Agreement States

• Fees not necessarily reduced for all licensees
• Some Agreement States have more restrictive
  rules
• Growing pains
• Lots of work!

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How to Become an Agreement State

• Letter of Intent from the Governor
• Statute/Rules Revisions needed to meet NRC
  criteria
• Adequate Staffing
• Adequate Training and Expertise
• 4-5 Year Process.

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• Key Conditions for Proceeding With Agreement
  State Proposal
• Better protection of the public
• Better responsiveness to licensees efficacy
• Better synergy of resources efficiency
• Operate program at a lower cost (than NRC)
• Share cost savings with licensees as much as
  possible.

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Our Proposed Strategy

• Time Line
• Staffing
• Agreement State Program Funding Needs
• Program Development Funding Concept

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Timeline

• An aggressive timeline to finalize an NRC
  Agreement in 4 5 years.
• Letter of Intent May, 2007
• Introduction of Legislation May, 2007
• Program Consolidation late 2007
• Submittal of Application August, 2010
• Signing of an Agreement Sept. 2011

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Staffing

• Adequate, well-trained staff is a prerequisite
  to signing an Agreement
• Current Program Staff 3.5 FTEs
• Projected Additional Program Staff
• 10 FTEs (8 tech., 2 admin. support)
• 2.25 FTEs per 100 licensees
• Added staff to be hired 2008-2011
• Tech. Staff must be trained prior to submitting
  Agreement Application.

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Program Financing

• Assure that a State Program can be conducted for
  lower costs than that of NRCs.
• Other Agreement States program costs are less
  than that of NRCs annual fees often less
• Most licensees will pay less
• Retain Small Entity discount and Academic Fee
  exemptions.

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Comparison of Fees(if Michigan was an Agreement
State)
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Program Start-up Funding

• Develop a Funding Mechanism that is limited,
  reasonable and equitable.
• NRC provides no funding State must develop a
  functional and capable program before signing
  Agreement
• State will not provide start-up funds
• Recommending a four year interim fee system.

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Interim Fee Structure

• WI used a fixed percentage of NRC fees each year
  for 4 years
• We propose
• Fixed fee for 4 years - based on percentage of
  NRC fee in Year 1 (2007)
• Fee will generate 849,400/year

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Interim Fee
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Financial Summary

• Assuming comparable cost increases for both NRC
  and State, State fees in 2012 will be 32 less
  than comparable NRC fees
• Most licensees will recoup their interim fee
  expenditures in less than 4 years
• If NRC fees remained at 2007 levels, MI fees in
  2012 would still be 9 less.

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Training

• Need to train staff quickly but fully.
• Use NRC courses as needed take advantage of
  space available spots
• Sponsor NRC courses in Michigan
• Shadow NRC inspectors doing so now
• Visit other Agreement States
• Work with MI licensees to identify other
  opportunities.

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NRC

• Sheri Minnick
• Regional Government Liaison Officer, Region
  3, Lisle, IL
• 630-829-9659
• SAM9_at_nrc.gov

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Agreement State Questions

• Contact
• James Lynch, Regional Agreement State Officer,
  NRC Region 3
• 630-829-9661
• JLL2_at_nrc.gov

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Energy Policy Act of 2005

• Contact
• Kevin Null, Senior Health Physicist, NRC
  Region 3
• at 630-829-9854
• KGN_at_nrc.gov

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• I believe that all good things come to those
  who wait provided they work feverishly while
  they are waiting.
• Dale Klein
• NRC Chairman

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Questions and Discussion