Nuclear Power Plant License Fees Upon Commencing Commercial Operation, 65032-65034 [2019-25581]
Download as PDF
<![CDATA[
65032
Federal Register / Vol. 84, No. 228 / Tuesday, November 26, 2019 / Proposed Rules
ADAMS Accession No./Federal Register citation/report No. and date
Document
Link to publication
RG 1.160, ‘‘Monitoring the Effectiveness of
Maintenance at Nuclear Power Plants,’’ Revision 3.
‘‘Davis-Besse Nuclear Power Station—Inspection of Apparent Cause Evaluation Efforts for
Propagation of Laminar Cracking in Reinforced Concrete Shield Building and Closure
of Unresolved Item Involving Shield Building
Laminar Cracking Licensing Basis—Inspection Report 05000346/2014008’’, NRC.
ADAMS Accession No. ML113610098, May
2012.
https://www.nrc.gov/docs/ML1136/
ML113610098.pdf.
ADAMS Accession No. ML15148A489, May
28, 2015.
https://www.nrc.gov/docs/ML1514/
ML15148A489.pdf.
Dated at Rockville, Maryland, this 19th day
of November 2019.
For the Nuclear Regulatory Commission.
Annette L. Vietti-Cook,
Secretary of the Commission.
technical questions, contact the
individual listed in the FOR FURTHER
INFORMATION CONTACT section of this
document.
• NRC’s Agencywide Documents
Access and Management System
(ADAMS): You may obtain publiclyavailable documents online in the
ADAMS Public Documents collection at
https://www.nrc.gov/reading-rm/
adams.html. To begin the search, select
‘‘Begin Web-based ADAMS Search.’’ For
problems with ADAMS, please contact
the NRC’s Public Document Room (PDR)
reference staff at 1–800–397–4209, at
301–415–4737, or by email to
pdr.resource@nrc.gov. The ADAMS
accession number for each document
referenced (if it is available in ADAMS)
is provided the first time that it is
mentioned in the SUPPLEMENTARY
INFORMATION section.
• NRC’s PDR: You may examine and
purchase copies of public documents at
the NRC’s PDR, Room O1–F21, One
White Flint North, 11555 Rockville
Pike, Rockville, Maryland 20852.
FOR FURTHER INFORMATION CONTACT:
Dennis Andrukat, Office of Nuclear
Material Safety and Safeguards,
telephone: 301–415–1325, email:
Dennis.Andrukat@nrc.gov, or Jo A.
Jacobs, Office of the Chief Financial
Officer, telephone: 301–415–8388;
email: Jo.Jacobs@nrc.gov. Both are staff
of the U.S. Nuclear Regulatory
Commission, Washington, DC 20555–
0001.
[FR Doc. 2019–25489 Filed 11–25–19; 8:45 am]
BILLING CODE 7590–01–P
NUCLEAR REGULATORY
COMMISSION
10 CFR Part 171
[Docket No. PRM–171–1; NRC–2019–0084]
Nuclear Power Plant License Fees
Upon Commencing Commercial
Operation
Nuclear Regulatory
Commission.
ACTION: Petition for rulemaking; partial
consideration in the rulemaking
process.
AGENCY:
The U.S. Nuclear Regulatory
Commission (NRC) will consider in its
rulemaking process one issue raised in
a petition for rulemaking, PRM–171–1,
dated February 28, 2019, submitted by
Dr. Michael D. Meier on behalf of the
Southern Nuclear Operating Company
(the petitioner), and is denying the
remaining issue in PRM–171–1. The
petitioner requested that the NRC
amend its regulations related to the start
of the assessment of annual fees for
certain nuclear power plants.
DATES: The docket for the petition for
rulemaking PRM–171–1 is closed on
November 26, 2019.
ADDRESSES: Please refer to Docket ID
NRC–2019–0084 when contacting the
NRC about the availability of
information for this action. You may
obtain publicly-available information
related to this action by any of the
following methods:
• Federal Rulemaking Website: Go to
https://www.regulations.gov/ and search
for Docket ID NRC–2019–0084. Address
questions about NRC dockets to Carol
Gallagher; telephone: 301–415–3463;
email: Carol.Gallagher@nrc.gov. For
SUMMARY:
VerDate Sep<11>2014
17:02 Nov 25, 2019
Jkt 250001
SUPPLEMENTARY INFORMATION:
Table of Contents
I. The Petition
II. Public Comments on the Petition
III. Reasons for Consideration
IV. Reasons for Denial
V. Conclusion
I. The Petition
The NRC received and docketed a
petition for rulemaking (PRM), dated
February 28, 2019 (ADAMS Accession
No. ML19081A015) filed by Dr. Michael
D. Meier, on behalf of the Southern
Nuclear Operating Company (the
PO 00000
Frm 00012
Fmt 4702
Sfmt 4702
petitioner). The NRC published a notice
of docketing and request for comment in
the Federal Register on June 10, 2019
(84 FR 26774). The petitioner requested
that the NRC revise its regulations in
part 171 of title 10 of the Code of
Federal Regulations (10 CFR), ‘‘Annual
fees for reactor licenses and fuel cycle
licenses and materials licenses,
including holders of certificates of
compliance, registrations, and quality
assurance program approvals and
government agencies licensed by the
NRC,’’ related to the start of the
assessment of annual fees for a
combined license (COL) holder, to align
with commencement of ‘‘commercial
operation’’ 1 of a licensed nuclear power
plant. Specifically, the petitioner
requested that the NRC revise the timing
of when annual license fees commence
for holders of a COL under 10 CFR part
52, ‘‘Licenses, certifications, and
approvals for nuclear power plants,’’ in
order to coincide with the time when a
reactor achieves commercial operation,
rather than when a § 52.103(g) finding is
issued, which is when the NRC finds
that the acceptance criteria in the COL
are met and the licensee can begin
operating the facility.
The petitioner stated that the issuance
of the § 52.103(g) finding will occur
prior to reactor startup, and several
months before commercial operation of
the reactor. The petitioner further noted
that during this startup phase, the
reactor will not have achieved
commercial operation, and the licensee
will be incapable of deriving revenue
from the production of energy beyond
the de minimis amounts from test
energy. The petitioner asserted that
because commercial operation does not
occur until several months after the
§ 52.103(g) finding, the current language
of § 171.15(a), ‘‘Annual fees: Reactor
licensees and independent spent fuel
storage licenses,’’ does not align with
the NRC’s stated policy to assess annual
fees based on the benefits of receiving
1 The petitioner defined ‘‘commercial operation.’’
The NRC does not have an official definition for
commercial operation.
E:\FR\FM\26NOP1.SGM
26NOP1
Federal Register / Vol. 84, No. 228 / Tuesday, November 26, 2019 / Proposed Rules
authorization to operate. The petitioner
proposed that the regulations in
§ 171.15(a) be revised such that the
responsibility of 10 CFR part 52
licensees to pay annual fees under 10
CFR part 171 be imposed at the time
when the power reactor is deemed
available for commercial operation
under the licensee’s and/or State
regulatory agency’s accounting rules.
The NRC identified two main issues
in the petition related to the start of the
assessment of annual fees for certain
nuclear power plants:
Issue 1: To amend the regulations, for
10 CFR part 52 COL holders, to
commence the assessment of annual
fees at a time after the § 52.103(g)
finding is issued.
Issue 2: To amend the regulations, for
10 CFR part 52 COL holders, to
commence the assessment of annual
fees when the ‘‘facility has been
declared available for commercial
operation under applicable standards of
the licensee or the State regulatory
commission with jurisdiction over the
facility.’’
II. Public Comments on the Petition
The docketing notice for the petition
invited interested persons to submit
comments. The comment period closed
on July 10, 2019. During the 30-day
public comment period, the NRC
received five public comment
submissions with a total of seven
comments, from the Nuclear Energy
Institute, industry stakeholders, and one
non-government organization.
Comments received on the petition will
be addressed in the proposed rule,
‘‘Revision of Fee Schedules: Fee
Recovery for FY 2020’’ (NRC–2017–
0228; RIN 3150–AK10).
III. Reasons for Consideration
The NRC will consider Issue 1 in the
rulemaking process.
The petitioner proposed that
§ 171.15(a) be revised such that the
responsibility for 10 CFR part 52
licensees to pay NRC annual fees under
10 CFR part 171 begin when the power
reactor is deemed available for
commercial operation under the
licensee’s and/or State regulatory
agency’s accounting rules. The
petitioner stated there could be several
months between the issuance of the
§ 52.103(g) finding and when the reactor
has achieved commercial operation—
that is, ‘‘capable of deriving revenue
from the production of energy beyond
the de minimis amounts from test
energy.’’
The NRC regulations at § 171.15
currently require a 10 CFR part 52 COL
holder to pay the annual fee upon the
VerDate Sep<11>2014
17:02 Nov 25, 2019
Jkt 250001
Commission’s finding under § 52.103(g)
that all acceptance criteria in the COL
are met. Historically, annual fees
commence when a licensee becomes
authorized to possess and use licensed
material, because this is when the
licensee receives the benefits of a
license. For 10 CFR part 52 COL
holders, the authorization to use the
material (i.e., begin operating the
reactor) is currently received when a
§ 52.103(g) finding is issued.
Additionally, the NRC does not base
fees on economic considerations such as
licensees’ economic status, market
conditions, or the inability of licensees
to pass through costs to its customers.
The NRC is required by statute, the
Omnibus Budget Reconciliation Act of
1990, as amended, to apply fairness and
equity in the assessment of fees to
licensees. The NRC has found that it is
fair and equitable to change the timing
of when annual fees commence for 10
CFR part 52 licensees from when a
§ 52.103(g) finding is issued to a time
that aligns more closely with becoming
fully operational after the start up and
initial testing phase. The NRC
recognizes that, after the § 52.103(g)
finding, fuel must be loaded and power
ascension testing must be completed to
provide assurance that the facility is
fully operational. This process includes
written notification to the NRC that
successful power ascension testing is
competed.2
Based on the NRC’s review of this
issue in PRM–171–1 and the public
comments received, the NRC also will
consider amending the timing regarding
the assessment of annual fees to apply
to future 10 CFR part 50 power reactor
licensees. Public commenters were
supportive of the proposed change,
including the Nuclear Energy Institute,
which represents numerous members of
the class of licensees that would be
directly impacted by this change. This
issue will be considered in the FY 2020
proposed fee rule.
IV. Reasons for Denial
The NRC is denying Issue 2 raised by
the petitioner.
The petitioner proposed that the
regulations in § 171.15(a) be revised
such that the responsibility for NRC
annual fees under 10 CFR part 171 for
10 CFR part 52 licensees be imposed at
the time when the power reactor is
deemed available for commercial
2 Only the current 10 CFR part 52 COLs contain
a standard license condition that requires written
notification be submitted to the NRC upon
successful completion of power ascension testing.
The NRC will consider adding this standard license
condition to future 10 CFR parts 50 and 52 power
reactor licensees.
PO 00000
Frm 00013
Fmt 4702
Sfmt 4702
65033
operation under the licensee’s and/or
State regulatory agency’s accounting
rules. The petitioner recommended
revising § 171.15(a) to commence
annual fees ‘‘after the facility for which
such license was issued has been
declared available for commercial
operation under applicable standards of
the licensee or the State regulatory
commission with jurisdiction over the
facility.’’ The petitioner also
recommended deleting ‘‘after the
Commission has made the finding under
§ 52.103(g).’’
The Commission has previously
addressed this issue in the statement of
considerations for the FY 2002 final fee
rule (67 FR 42611; June 24, 2002).
Specifically, the Commission stated that
‘‘the NRC has not based its fees on
licensees’ economic status, market
conditions, or the ability of licensees to
pass through the costs to its customers.’’
In keeping with the agency’s safety and
security mission, the NRC’s regulations
deliberately are not tied to economic
viability or profitability, and the NRC
has not assessed fees based on these
concepts.
The petitioner interpreted the
statement of considerations from the FY
2007 final fee rule (72 FR 31426, June
6, 2007) to mean that charging annual
fees is associated with the ‘‘benefits of
receiving the NRC’s authorization to
operate.’’ The petitioner maintained that
this benefit is not gained with the
issuance of a § 52.103(g) finding but
with the start of commercial operation
of the reactor. The petitioner defined
commercial operation as the point at
which ‘‘the power reactor will be
capable of generating sufficient energy
to reliably serve the licensee’s
customers and generate sufficient
revenue for the licensees to justify
imposition of the annual fee.’’
For three reasons, the NRC did not
elect to adopt this approach. First, in
contrast to the point at which power
ascension tests are complete, there is no
regulatory requirement for a licensee to
notify the NRC when the licensee first
begins commercial operation. Second,
the term ‘‘commercial operation’’ is
undefined in NRC regulations. Third,
the Commission’s longstanding and
fundamental policy underlying the fee
structure states that the imposition of
the annual fee should not be related to
the licensee’s financial justification if
the NRC is to maintain the integrity of
the statutorily mandated fee collection
requirements. The statement of
considerations for the FY 2007 final fee
rule, which the petitioner references,
discusses that annual fees are based on
the benefits of receiving operation
authorization, regardless of whether the
E:\FR\FM\26NOP1.SGM
26NOP1
65034
Federal Register / Vol. 84, No. 228 / Tuesday, November 26, 2019 / Proposed Rules
licensee chooses to operate. The
‘‘benefits’’ received, as described
therein, are not related to a
determination of when commercial
operation begins or the licensee’s ability
to generate revenue. The collection of
annual fees is required to recover the
resources needed to regulate each fee
class that are not otherwise recovered
through charges assessed for specific
services in each fee class under 10 CFR
part 170, ‘‘Fees for facilities, materials,
import and export licenses, and other
regulatory services under the Atomic
Energy Act of 1954, as amended.’’
Additionally, NRC fees are not based on
whether a licensed entity is
commercially operating or commercially
viable, and the NRC achieves fairness
and equity by conducting an annual
public rulemaking process to update its
fees. Furthermore, an analysis of a
licensee’s commercial viability is
outside the mission of the agency.
Therefore, the NRC will not consider
amending fee regulations to begin
annual fee assessments based upon
commercial operation under the
licensee’s and/or State regulatory
agency’s accounting rules.
V. Conclusion
For the reasons cited in this
document, the NRC will consider one
issue raised in this petition in its
rulemaking process and will deny the
remaining issue. The NRC will consider
the one issue in the FY 2020 proposed
fee rule. The NRC notes that acceptance
of this portion of the petition into the
rulemaking process does not mean that
the petitioner’s concerns will be
addressed exactly as the petitioner
requested. The NRC tracks the status of
petitions and rules on its websites at
https://www.nrc.gov/reading-rm/doccollections/rulemaking-ruleforum/
petitions-by-year.html and https://
www.nrc.gov/about-nrc/regulatory/
rulemaking/rules-petitions.html. The
public may monitor the docket for the
rulemaking addressing Issue 1 on the
Federal rulemaking website, https://
www.regulations.gov, by searching on
Docket ID NRC–2017–0228. In addition,
the Federal rulemaking website allows
members of the public to receive alerts
when changes or additions occur in a
docket folder. To subscribe: (1) Navigate
to the docket folder (NRC–2017–0228);
(2) click the ‘‘Email Alert’’ link; and (3)
enter an email address and select the
frequency for email receipts (daily,
weekly, or monthly). As in all
rulemakings, the NRC will request and
consider public comments during the
proposed rule phase before determining
the approach that will be the basis for
the final rule.
VerDate Sep<11>2014
17:02 Nov 25, 2019
Jkt 250001
Dated at Rockville, Maryland, this 19th day
of November, 2019.
For the Nuclear Regulatory Commission.
Maureen E. Wylie,
Chief Financial Officer.
[FR Doc. 2019–25581 Filed 11–25–19; 8:45 am]
BILLING CODE 7590–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2019–0875; Product
Identifier 2019–NM–143–AD]
RIN 2120–AA64
Airworthiness Directives; The Boeing
Company Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of proposed rulemaking
(NPRM).
AGENCY:
The FAA proposes to adopt a
new airworthiness directive (AD) for
certain The Boeing Company Model
747–400 series airplanes. This proposed
AD was prompted by a report of a
certain modification that causes
interference with inspections that are
intended to detect fatigue cracks. This
proposed AD would require repetitive
low frequency eddy current (LFEC)
inspections of a certain fuselage upper
skin lap splice for cracks, repetitive high
frequency eddy current (HFEC)
inspections of a certain fuselage upper
skin lap splice for cracks, and
applicable on-condition actions. The
FAA is proposing this AD to address the
unsafe condition on these products.
DATES: The FAA must receive comments
on this proposed AD by January 10,
2020.
SUMMARY:
You may send comments,
using the procedures found in 14 CFR
11.43 and 11.45, by any of the following
methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Fax: 202–493–2251.
• Mail: U.S. Department of
Transportation, Docket Operations,
M–30, West Building Ground Floor,
Room W12–140, 1200 New Jersey
Avenue SE, Washington, DC 20590.
• Hand Delivery: Deliver to Mail
address above between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays.
For service information identified in
this NPRM, contact Boeing Commercial
Airplanes, Attention: Contractual & Data
ADDRESSES:
PO 00000
Frm 00014
Fmt 4702
Sfmt 4702
Services (C&DS), 2600 Westminster
Blvd., MC 110–SK57, Seal Beach, CA
90740–5600; telephone 562–797–1717;
internet https://
www.myboeingfleet.com. You may view
this referenced service information at
the FAA, Transport Standards Branch,
2200 South 216th St., Des Moines, WA.
For information on the availability of
this material at the FAA, call 206–231–
3195. It is also available on the internet
at https://www.regulations.gov by
searching for and locating Docket No.
FAA–2019–0875.
Examining the AD Docket
You may examine the AD docket on
the internet at https://
www.regulations.gov by searching for
and locating Docket No. FAA–2019–
0875; or in person at Docket Operations
between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
The AD docket contains this NPRM, the
regulatory evaluation, any comments
received, and other information. The
street address for Docket Operations is
listed above. Comments will be
available in the AD docket shortly after
receipt.
FOR FURTHER INFORMATION CONTACT: Bill
Ashforth, Aerospace Engineer, Airframe
Section, FAA, Seattle ACO Branch, 2200
South 216th St., Des Moines, WA 98198;
phone and fax: 206–231–3520; email:
bill.ashforth@faa.gov.
SUPPLEMENTARY INFORMATION:
Comments Invited
The FAA invites you to send any
written relevant data, views, or
arguments about this proposal. Send
your comments to an address listed
under the ADDRESSES section. Include
‘‘Docket No. FAA–2019–0875; Product
Identifier 2019–NM–143–AD’’ at the
beginning of your comments. The FAA
specifically invites comments on the
overall regulatory, economic,
environmental, and energy aspects of
this NPRM. The agency will consider all
comments received by the closing date
and may amend this NPRM because of
those comments.
The FAA will post all comments
received, without change, to https://
www.regulations.gov, including any
personal information you provide. The
agency will also post a report
summarizing each substantive verbal
contact received about this proposed
AD.
Discussion
The FAA has received a report
indicating that installation of a fuselage
modification (Mod) doubler common to
station (STA) 1640 to STA 1820 at
stringer (STR)–34 and STR–40, done as
E:\FR\FM\26NOP1.SGM
26NOP1
]]>Agencies
[Federal Register Volume 84, Number 228 (Tuesday, November 26, 2019)]
[Proposed Rules]
[Pages 65032-65034]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25581]
-----------------------------------------------------------------------
NUCLEAR REGULATORY COMMISSION
10 CFR Part 171
[Docket No. PRM-171-1; NRC-2019-0084]
Nuclear Power Plant License Fees Upon Commencing Commercial
Operation
AGENCY: Nuclear Regulatory Commission.
ACTION: Petition for rulemaking; partial consideration in the
rulemaking process.
-----------------------------------------------------------------------
SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) will consider in
its rulemaking process one issue raised in a petition for rulemaking,
PRM-171-1, dated February 28, 2019, submitted by Dr. Michael D. Meier
on behalf of the Southern Nuclear Operating Company (the petitioner),
and is denying the remaining issue in PRM-171-1. The petitioner
requested that the NRC amend its regulations related to the start of
the assessment of annual fees for certain nuclear power plants.
DATES: The docket for the petition for rulemaking PRM-171-1 is closed
on November 26, 2019.
ADDRESSES: Please refer to Docket ID NRC-2019-0084 when contacting the
NRC about the availability of information for this action. You may
obtain publicly-available information related to this action by any of
the following methods:
Federal Rulemaking Website: Go to https://www.regulations.gov/ and search for Docket ID NRC-2019-0084. Address
questions about NRC dockets to Carol Gallagher; telephone: 301-415-
3463; email: [email protected]. For technical questions, contact
the individual listed in the FOR FURTHER INFORMATION CONTACT section of
this document.
NRC's Agencywide Documents Access and Management System
(ADAMS): You may obtain publicly-available documents online in the
ADAMS Public Documents collection at https://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``Begin Web-based ADAMS
Search.'' For problems with ADAMS, please contact the NRC's Public
Document Room (PDR) reference staff at 1-800-397-4209, at 301-415-4737,
or by email to [email protected]. The ADAMS accession number for
each document referenced (if it is available in ADAMS) is provided the
first time that it is mentioned in the SUPPLEMENTARY INFORMATION
section.
NRC's PDR: You may examine and purchase copies of public
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555
Rockville Pike, Rockville, Maryland 20852.
FOR FURTHER INFORMATION CONTACT: Dennis Andrukat, Office of Nuclear
Material Safety and Safeguards, telephone: 301-415-1325, email:
[email protected], or Jo A. Jacobs, Office of the Chief Financial
Officer, telephone: 301-415-8388; email: [email protected]. Both are
staff of the U.S. Nuclear Regulatory Commission, Washington, DC 20555-
0001.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. The Petition
II. Public Comments on the Petition
III. Reasons for Consideration
IV. Reasons for Denial
V. Conclusion
I. The Petition
The NRC received and docketed a petition for rulemaking (PRM),
dated February 28, 2019 (ADAMS Accession No. ML19081A015) filed by Dr.
Michael D. Meier, on behalf of the Southern Nuclear Operating Company
(the petitioner). The NRC published a notice of docketing and request
for comment in the Federal Register on June 10, 2019 (84 FR 26774). The
petitioner requested that the NRC revise its regulations in part 171 of
title 10 of the Code of Federal Regulations (10 CFR), ``Annual fees for
reactor licenses and fuel cycle licenses and materials licenses,
including holders of certificates of compliance, registrations, and
quality assurance program approvals and government agencies licensed by
the NRC,'' related to the start of the assessment of annual fees for a
combined license (COL) holder, to align with commencement of
``commercial operation'' \1\ of a licensed nuclear power plant.
Specifically, the petitioner requested that the NRC revise the timing
of when annual license fees commence for holders of a COL under 10 CFR
part 52, ``Licenses, certifications, and approvals for nuclear power
plants,'' in order to coincide with the time when a reactor achieves
commercial operation, rather than when a Sec. 52.103(g) finding is
issued, which is when the NRC finds that the acceptance criteria in the
COL are met and the licensee can begin operating the facility.
---------------------------------------------------------------------------
\1\ The petitioner defined ``commercial operation.'' The NRC
does not have an official definition for commercial operation.
---------------------------------------------------------------------------
The petitioner stated that the issuance of the Sec. 52.103(g)
finding will occur prior to reactor startup, and several months before
commercial operation of the reactor. The petitioner further noted that
during this startup phase, the reactor will not have achieved
commercial operation, and the licensee will be incapable of deriving
revenue from the production of energy beyond the de minimis amounts
from test energy. The petitioner asserted that because commercial
operation does not occur until several months after the Sec. 52.103(g)
finding, the current language of Sec. 171.15(a), ``Annual fees:
Reactor licensees and independent spent fuel storage licenses,'' does
not align with the NRC's stated policy to assess annual fees based on
the benefits of receiving
[[Page 65033]]
authorization to operate. The petitioner proposed that the regulations
in Sec. 171.15(a) be revised such that the responsibility of 10 CFR
part 52 licensees to pay annual fees under 10 CFR part 171 be imposed
at the time when the power reactor is deemed available for commercial
operation under the licensee's and/or State regulatory agency's
accounting rules.
The NRC identified two main issues in the petition related to the
start of the assessment of annual fees for certain nuclear power
plants:
Issue 1: To amend the regulations, for 10 CFR part 52 COL holders,
to commence the assessment of annual fees at a time after the Sec.
52.103(g) finding is issued.
Issue 2: To amend the regulations, for 10 CFR part 52 COL holders,
to commence the assessment of annual fees when the ``facility has been
declared available for commercial operation under applicable standards
of the licensee or the State regulatory commission with jurisdiction
over the facility.''
II. Public Comments on the Petition
The docketing notice for the petition invited interested persons to
submit comments. The comment period closed on July 10, 2019. During the
30-day public comment period, the NRC received five public comment
submissions with a total of seven comments, from the Nuclear Energy
Institute, industry stakeholders, and one non-government organization.
Comments received on the petition will be addressed in the proposed
rule, ``Revision of Fee Schedules: Fee Recovery for FY 2020'' (NRC-
2017-0228; RIN 3150-AK10).
III. Reasons for Consideration
The NRC will consider Issue 1 in the rulemaking process.
The petitioner proposed that Sec. 171.15(a) be revised such that
the responsibility for 10 CFR part 52 licensees to pay NRC annual fees
under 10 CFR part 171 begin when the power reactor is deemed available
for commercial operation under the licensee's and/or State regulatory
agency's accounting rules. The petitioner stated there could be several
months between the issuance of the Sec. 52.103(g) finding and when the
reactor has achieved commercial operation--that is, ``capable of
deriving revenue from the production of energy beyond the de minimis
amounts from test energy.''
The NRC regulations at Sec. 171.15 currently require a 10 CFR part
52 COL holder to pay the annual fee upon the Commission's finding under
Sec. 52.103(g) that all acceptance criteria in the COL are met.
Historically, annual fees commence when a licensee becomes authorized
to possess and use licensed material, because this is when the licensee
receives the benefits of a license. For 10 CFR part 52 COL holders, the
authorization to use the material (i.e., begin operating the reactor)
is currently received when a Sec. 52.103(g) finding is issued.
Additionally, the NRC does not base fees on economic considerations
such as licensees' economic status, market conditions, or the inability
of licensees to pass through costs to its customers.
The NRC is required by statute, the Omnibus Budget Reconciliation
Act of 1990, as amended, to apply fairness and equity in the assessment
of fees to licensees. The NRC has found that it is fair and equitable
to change the timing of when annual fees commence for 10 CFR part 52
licensees from when a Sec. 52.103(g) finding is issued to a time that
aligns more closely with becoming fully operational after the start up
and initial testing phase. The NRC recognizes that, after the Sec.
52.103(g) finding, fuel must be loaded and power ascension testing must
be completed to provide assurance that the facility is fully
operational. This process includes written notification to the NRC that
successful power ascension testing is competed.\2\
---------------------------------------------------------------------------
\2\ Only the current 10 CFR part 52 COLs contain a standard
license condition that requires written notification be submitted to
the NRC upon successful completion of power ascension testing. The
NRC will consider adding this standard license condition to future
10 CFR parts 50 and 52 power reactor licensees.
---------------------------------------------------------------------------
Based on the NRC's review of this issue in PRM-171-1 and the public
comments received, the NRC also will consider amending the timing
regarding the assessment of annual fees to apply to future 10 CFR part
50 power reactor licensees. Public commenters were supportive of the
proposed change, including the Nuclear Energy Institute, which
represents numerous members of the class of licensees that would be
directly impacted by this change. This issue will be considered in the
FY 2020 proposed fee rule.
IV. Reasons for Denial
The NRC is denying Issue 2 raised by the petitioner.
The petitioner proposed that the regulations in Sec. 171.15(a) be
revised such that the responsibility for NRC annual fees under 10 CFR
part 171 for 10 CFR part 52 licensees be imposed at the time when the
power reactor is deemed available for commercial operation under the
licensee's and/or State regulatory agency's accounting rules. The
petitioner recommended revising Sec. 171.15(a) to commence annual fees
``after the facility for which such license was issued has been
declared available for commercial operation under applicable standards
of the licensee or the State regulatory commission with jurisdiction
over the facility.'' The petitioner also recommended deleting ``after
the Commission has made the finding under Sec. 52.103(g).''
The Commission has previously addressed this issue in the statement
of considerations for the FY 2002 final fee rule (67 FR 42611; June 24,
2002). Specifically, the Commission stated that ``the NRC has not based
its fees on licensees' economic status, market conditions, or the
ability of licensees to pass through the costs to its customers.'' In
keeping with the agency's safety and security mission, the NRC's
regulations deliberately are not tied to economic viability or
profitability, and the NRC has not assessed fees based on these
concepts.
The petitioner interpreted the statement of considerations from the
FY 2007 final fee rule (72 FR 31426, June 6, 2007) to mean that
charging annual fees is associated with the ``benefits of receiving the
NRC's authorization to operate.'' The petitioner maintained that this
benefit is not gained with the issuance of a Sec. 52.103(g) finding
but with the start of commercial operation of the reactor. The
petitioner defined commercial operation as the point at which ``the
power reactor will be capable of generating sufficient energy to
reliably serve the licensee's customers and generate sufficient revenue
for the licensees to justify imposition of the annual fee.''
For three reasons, the NRC did not elect to adopt this approach.
First, in contrast to the point at which power ascension tests are
complete, there is no regulatory requirement for a licensee to notify
the NRC when the licensee first begins commercial operation. Second,
the term ``commercial operation'' is undefined in NRC regulations.
Third, the Commission's longstanding and fundamental policy underlying
the fee structure states that the imposition of the annual fee should
not be related to the licensee's financial justification if the NRC is
to maintain the integrity of the statutorily mandated fee collection
requirements. The statement of considerations for the FY 2007 final fee
rule, which the petitioner references, discusses that annual fees are
based on the benefits of receiving operation authorization, regardless
of whether the
[[Page 65034]]
licensee chooses to operate. The ``benefits'' received, as described
therein, are not related to a determination of when commercial
operation begins or the licensee's ability to generate revenue. The
collection of annual fees is required to recover the resources needed
to regulate each fee class that are not otherwise recovered through
charges assessed for specific services in each fee class under 10 CFR
part 170, ``Fees for facilities, materials, import and export licenses,
and other regulatory services under the Atomic Energy Act of 1954, as
amended.'' Additionally, NRC fees are not based on whether a licensed
entity is commercially operating or commercially viable, and the NRC
achieves fairness and equity by conducting an annual public rulemaking
process to update its fees. Furthermore, an analysis of a licensee's
commercial viability is outside the mission of the agency. Therefore,
the NRC will not consider amending fee regulations to begin annual fee
assessments based upon commercial operation under the licensee's and/or
State regulatory agency's accounting rules.
V. Conclusion
For the reasons cited in this document, the NRC will consider one
issue raised in this petition in its rulemaking process and will deny
the remaining issue. The NRC will consider the one issue in the FY 2020
proposed fee rule. The NRC notes that acceptance of this portion of the
petition into the rulemaking process does not mean that the
petitioner's concerns will be addressed exactly as the petitioner
requested. The NRC tracks the status of petitions and rules on its
websites at https://www.nrc.gov/reading-rm/doc-collections/rulemaking-ruleforum/petitions-by-year.html and https://www.nrc.gov/about-nrc/regulatory/rulemaking/rules-petitions.html. The public may monitor the
docket for the rulemaking addressing Issue 1 on the Federal rulemaking
website, https://www.regulations.gov, by searching on Docket ID NRC-
2017-0228. In addition, the Federal rulemaking website allows members
of the public to receive alerts when changes or additions occur in a
docket folder. To subscribe: (1) Navigate to the docket folder (NRC-
2017-0228); (2) click the ``Email Alert'' link; and (3) enter an email
address and select the frequency for email receipts (daily, weekly, or
monthly). As in all rulemakings, the NRC will request and consider
public comments during the proposed rule phase before determining the
approach that will be the basis for the final rule.
Dated at Rockville, Maryland, this 19th day of November, 2019.
For the Nuclear Regulatory Commission.
Maureen E. Wylie,
Chief Financial Officer.
[FR Doc. 2019-25581 Filed 11-25-19; 8:45 am]
BILLING CODE 7590-01-P
