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Consideration of Michigan Pursuing an NRC Agreement . A Discussion with Stakeholders March 2, 2007. Presenters: Jim Sygo, Deputy Director, DEQ Jan Christensen, Deputy Director, DCH George Bruchmann, DEQ Thor Strong, DEQ Sheri Minnick, NRC. DEQ Thor Strong 517-241-1252 Robert Skowronek

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consideration of michigan pursuing an nrc agreement

Consideration of Michigan Pursuing an NRC Agreement

A Discussion with Stakeholders

March 2, 2007

slide2
Presenters:

Jim Sygo, Deputy Director, DEQ

Jan Christensen, Deputy Director, DCH

George Bruchmann, DEQ

Thor Strong, DEQ

Sheri Minnick, NRC

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

DEQ/DCH Work Group
slide4
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
what is an agreement state
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
what is an agreement state6
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
what is an agreement state7
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 state’s performance.
slide8

AGREEMENT STATES

AGREEMENT STATES

advantages
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.
advantages10
Advantages

To the State:

  • Greater capability to deal with all radiation issues, incidents, threats;
  • Individual programs strengthened;
  • Fees remain in state.
disadvantages cited in some agreement states
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!
how to become an agreement state
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.
slide13
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.
our proposed strategy
Our Proposed Strategy
  • Time Line
  • Staffing
  • Agreement State Program Funding Needs
  • Program Development Funding Concept
timeline
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
staffing
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.
program financing
Program Financing

Assure that a State Program can be conducted for lower costs than that of NRC’s.

  • Other Agreement States program costs are less than that of NRC’s; annual fees often less;
  • Most licensees will pay less;
  • Retain Small Entity discount and Academic Fee exemptions.
program start up funding
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.
interim fee structure
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
financial summary
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.
training
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.
slide25
NRC

Sheri Minnick

Regional Government Liaison Officer, Region 3, Lisle, IL

630-829-9659

SAM9@nrc.gov

agreement state questions
Agreement State Questions

Contact:

James Lynch, Regional Agreement State Officer, NRC Region 3

630-829-9661

JLL2@nrc.gov

energy policy act of 2005
Energy Policy Act of 2005

Contact:

Kevin Null, Senior Health Physicist, NRC Region 3

at 630-829-9854

KGN@nrc.gov

slide28
“I believe that all good things come to those who wait – provided they work feverishly while they are waiting.”

Dale Klein

NRC Chairman