Consideration of Consideration of Michigan Michigan

Pursuing an NRC Pursuing an NRC Agreement Agreement

A Discussion with A Discussion with Licensees and Licensees and StakeholdersStakeholders

August 8, 2007August 8, 2007

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

Bruce Bruce MatkovichMatkovich

517-241-1993517-241-1993

Don ParryDon Parry

517-241-1986517-241-1986

I have asked the MDEQ and I have asked the MDEQ and MDCH to develop a proposal, MDCH to develop a proposal, including a timeline and a including a timeline and a program funding strategy, to program funding strategy, to consolidate the current state consolidate the current state radiation control programs and to radiation control programs and to pursue an Agreement…..pursue an Agreement…..

Governor Granholm’s response; Governor Granholm’s response; Oct. 5, 2006Oct. 5, 2006

Recent StepsRecent Steps Development of Draft StrategyDevelopment of Draft Strategy March 2 Meeting with Key March 2 Meeting with Key

StakeholdersStakeholders Formation of an Agreement State Formation of an Agreement State

Advisory CommitteeAdvisory Committee ASAC assistance on Strategy, ASAC assistance on Strategy,

Legislative RevisionsLegislative Revisions Web Site, Notifications to all Web Site, Notifications to all

Licensees and RegistrantsLicensees and Registrants

Goals for TodayGoals for Today

Describe the Agreement State Describe the Agreement State program;program;

Describe the proposed strategy;Describe the proposed strategy; Provide opportunity for comment, Provide opportunity for comment,

questions, discussion;questions, discussion; Discuss next steps.Discuss next steps.

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 reduced Fees not necessarily reduced for all licensees;for all licensees;

Some Agreement States have Some Agreement States have more restrictive rules;more restrictive rules;

Growing pains;Growing pains;Lots of work! (mainly for us)Lots of work! (mainly for us)

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; Better synergy of resources;Better synergy of resources; Operate program at a lower cost than NRC;Operate program at a lower cost than 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 – Summer, 2007Letter of Intent – Summer, 2007 Introduction of Legislation – Fall, 2007Introduction of Legislation – Fall, 2007 Program Consolidation – Early 2008Program Consolidation – Early 2008 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

$29,000$29,000 18,85018,850

NuclearNuclear

PharmacyPharmacy11,90011,900 7,7357,735

Med. Med. Private Private

PracticePractice

4,9004,900 3,1853,185

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 $ 867,000/year 867,000/year

Interim FeeInterim Fee

NRC NRC License License

CategoryCategory

2007 2007

NRC FeeNRC FeeInterim Interim

Fee Fee (40%)(40%)

Interim Interim Fee Fee

TotalTotal

Medical Medical Broad Broad ScopeScope

$29,000$29,000 8,000*8,000* 32,00032,000

Nuclear Nuclear

PharmacyPharmacy$11,900$11,900 4,7604,760 19,04019,040

Med. Med. Private Private PracticePractice

$4,900$4,900 1,9601,960 7,8407,840

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 35% less than 2012 will be 35% less than comparable NRC fees;comparable NRC fees;

Most licensees will recoup their Most licensees will recoup their interim fee expenditures in about 4 interim fee expenditures in about 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.

NRC’s RoleNRC’s Role

NRC’s official policyNRC’s official policy Assistance to MI during processAssistance to MI during process Review Agreement State Review Agreement State

programs through the programs through the Integrated Materials Integrated Materials Performance Evaluation Performance Evaluation Program (IMPEP)Program (IMPEP)

NRC Assistance to NRC Assistance to MichiganMichigan

Inspector accompanimentsInspector accompaniments One-on-one licensing training One-on-one licensing training

catered to the needs of catered to the needs of Michigan staffMichigan staff

Technical assistance from the Technical assistance from the Regional Agreement State Regional Agreement State Officer Officer

Energy Policy Act of Energy Policy Act of 20052005

Section 651(e) of EPAct amended the Section 651(e) of EPAct amended the definition of byproduct material in Section definition of byproduct material in Section 11e of the Atomic Energy Act to include 11e of the Atomic Energy Act to include NARM:NARM: Accelerator-produced radioactive materialAccelerator-produced radioactive material Discrete sources of radium-226Discrete sources of radium-226 Discrete sources of other naturally occurring Discrete sources of other naturally occurring

radioactive material that the NRC determines, radioactive material that the NRC determines, in consultation with EPA, DOE & DHS, pose a in consultation with EPA, DOE & DHS, pose a threat similar to radium-226threat similar to radium-226

Signed into law August 8, 2005Signed into law August 8, 2005

Energy Policy Act of Energy Policy Act of 20052005

WaiversWaivers EPAct allows the Commission to grant EPAct allows the Commission to grant

waivers allowing current programs to waivers allowing current programs to continue for up to 4 years after enactmentcontinue for up to 4 years after enactment

NRC issued waiver August 25, 2005NRC issued waiver August 25, 2005 Waiver expires August 25, 2009Waiver expires August 25, 2009

What does this mean for MI What does this mean for MI registrants?registrants?

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

JLL2@nrc.govJLL2@nrc.gov

Questions Regarding the Questions Regarding the 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

KGN@nrc.govKGN@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