Vol. 137, No. 5 — February 1, 2003

Canadian Nuclear Safety Commission Cost Recovery Fees Regulations

Statutory Authority

Nuclear Safety and Control Act

Sponsoring Agency

Canadian Nuclear Safety Commission

REGULATORY IMPACT ANALYSIS STATEMENT

Description

As Canada's nuclear regulatory agency, the Canadian Nuclear Safety Commission (CNSC) regulates all activities related to the use of nuclear energy and nuclear substances in Canada, including nuclear power reactors, non-power reactors, nuclear research and test facilities, uranium mines and mills, uranium refineries, nuclear substance processing facilities, medical and non-medical accelerators, and a wide variety of nuclear substances and prescribed equipment for use in industry. The CNSC regulates over 1 700 fee-paying licensees, as well as approximately 500 licensees who are exempt from paying fees.

It is government policy to implement user charges for services that provide identifiable recipients with direct benefits beyond those received by the general public (Cost Recovery and Charging Policy, 1997). The Atomic Energy Control Board, the CNSC's predecessor, first introduced external user charging in 1990. Licence fees have been prescribed in the Cost Recovery Fees Regulations under the Atomic Energy Control Act (AEC Act) and have been amended several times. These Cost Recovery Fees Regulations were last amended in 1996, based on actual costs for the 1992-93 fiscal year.

The current Cost Recovery Fees Regulations are not adequate for the following reasons:

1. Actual costs have increased since 1992-93 due to inflation and increased regulatory effort. More regulatory effort has been required due to the changes in the regulatory environment.
2. A careful review of CNSC costs, using an activity based accounting model, has also shown that there are inequities in the current Cost Recovery Fees Regulations. Some licensees pay fees that recover a substantial portion of their costs, while many licensees are paying fees that recover only a small portion of the costs of regulating their licensed activities. Also, in some circumstances, licensees are paying too much.

Therefore, based on the above, the current Cost Recovery Fees Regulations do not comply with the federal government's Cost Recovery and Charging Policy, 1997. Nor do the current Regulations comply with provisions 44(2) and 44(3) of the Nuclear Safety and Control Act (NSC Act). These provisions state that fees may not exceed a reasonable estimate of the cost of the CNSC's regulatory activities.

New Cost Recovery Fees Regulations are being proposed to allow the CNSC to recover the actual cost of regulating the nuclear industry equitably and in accordance with the federal government's Cost Recovery and Charging Policy, 1997 and to comply with the requirements of the NSC Act. In accordance with the authority to levy fees contained in the Nuclear Safety and Control Act, paragraph 44(1)(j) [the NSC Act replaced the AEC Act in May, 2000], the CNSC is proposing to establish:

— a method of calculating fees using estimates of actual effort and cost for major licences, and

— a standard-hour or prescribed fee method to calculate fees for other licences, certifications, and other regulatory work undertaken.

These proposed methods of calculation will be incorporated into the new Cost Recovery Fees Regulations to enable fees to be updated annually in line with changes in activity levels and costs.

The new Cost Recovery Fees Regulations will enable the Government of Canada to achieve a more equitable approach to the financing of the CNSC's regulatory activities. All fee-paying licensees will contribute their fair share of the costs of the regulatory regime established by Parliament to protect health, safety, security and the environment, and to respect Canada's international commitments on the peaceful use of nuclear energy.

In addition to ensuring that licensees bear the full costs associated with regulating their licensed activities, the proposed new Cost Recovery Fees Regulations will have the added benefits of:

— promoting and reinforcing compliance with the NSC Act, and the associated regulations and licence conditions, by enabling the CNSC to reduce or increase fees as appropriate for those licensees having good or poor compliance records. This would provide a financial incentive to licensees to comply with their regulatory obligations; and

— facilitating performance monitoring and planning, by using the cost information generated to identify resource requirements for specific regulatory programs, thereby promoting the efficient allocation of CNSC resources.

These changes apply only to those licensees designated as fee-paying; there is no change for the licensees who are currently exempt from paying licence fees. Exempt licensee costs will continue to be paid from the general revenues of the Government of Canada and are not paid by fee-paying licensees.

In developing its proposed new cost recovery program, the CNSC evaluated a number of alternative fee setting methodologies based on research performed with other Canadian government regulatory agencies and with international nuclear regulatory agencies. The CNSC has taken into account changes in the scope of its regulatory activities and has reviewed which of its activities should be subject to cost recovery. It has also identified licensees exempted from paying fee and a new method of calculating fees.

The CNSC reviewed the activities involved in the design, delivery, and support of its regulatory mandate against the provisions of the NSC Act and guidelines in the federal government's Cost Recovery and Charging Policy to determine which activities are cost-recoverable and which are non-recoverable.

Recoverable Activities

Recoverable activities are those that "provide identifiable recipients with direct benefits beyond those received by the general public" (Cost Recovery and Charging Policy). Recoverable activities are associated with the provision and maintenance of licences and certificates, including proportionate shares of applicable regulatory policies, standards, guides, and procedures. Licensees realize tangible benefits such as legal rights to develop, possess, use, transport, and sell nuclear energy or nuclear materials and prescribed equipment, as well as minimized risks to the health and safety of their workers. Licensees may also realize economic benefits in the form of reduced risks and liability, improved market access for their products and services, enhanced credibility as suppliers, and enhanced public confidence in the nuclear industry. Recoverable activities performed on behalf of exempt licensee costs will continue to be paid from the general revenues of the Government of Canada and are not paid by fee-paying licensees.

Recoverable Activities

Activity	Description
Licensing, Certification, and Examination	Licensees obtain legal right to operate commercial business
Regulatory Policies, Standards, Guides, and Procedures	Guides and standards written for use by licensees and certificate holders for assistance in meeting regulatory requirements under the NSC Act and its regulations
Contract Projects	Contract projects undertaken at the request of an outside entity for the direct benefit of that entity

Non-recoverable Activities

Non-recoverable activities are those that do not "provide identifiable recipients with direct benefits beyond those received by the general public" (Cost Recovery Charging Policy). These activities are not subject to cost recovery. The costs for these activities are borne by the Government.

Non-recoverable Activities

Activity	Description
International Obligation and Cooperation	Fulfillment of the federal government's international nuclear policies and obligations
Development and Maintenance of Legislation and Regulations	Development and amendment work to the NSC Act and its regulations to protect health, safety, security and the environment, and respect Canada's international commitments on the peaceful uses of nuclear energy
Government Cooperation	Sharing information with other federal and provincial bodies, including clarification of roles to avoid or reduce regulatory overlap
Information Services	Provision of information to the public

Implementation for the cost recovery program is proposed to be in fiscal year 2003-04.

Alternatives

Two alternatives were considered in developing the new Cost Recovery Fees Regulations:

1. The status quo was rejected because the current regulations are not in compliance with the most recent version of the federal government's Cost Recovery and Charging Policy, 1997. The current Cost Recovery Fees Regulations have not been amended since 1996, at which time the fees levied were based on the actual costs for the 1992-93 fiscal year.
2. A fixed fee approach was rejected because it would not reflect the changes in activity levels and costs that can occur from year to year.

As a result, new Cost Recovery Fees Regulations are necessary. They use new methods of calculating fees which are designed to reflect the characteristics of the different types of licences regulated, the regulations to which they are subject, and the level of effort expended by the CNSC and its related costs. These methods will also reflect the changes in costs that can occur from year to year, and the Cost Recovery Fees Regulations would then be in compliance with the federal government's Cost Recovery and Charging Policy, 1997.

Benefits and Costs

Benefits

The new CNSC Cost Recovery Fees Regulations will comply with federal policy and will allow the CNSC to recover from fee-paying licensees their portion of the actual costs of regulation.

Benefits will accrue to both the CNSC and licensees through joint planning and the up-front exchange of information. CNSC will be able to receive feedback from licensees on planned initiatives and ways to improve service delivery. The fee-setting process will be transparent to licensees as activities are performed and their associated costs are documented. Licensees will only pay for the regulatory oversight which they actually receive, thereby minimizing to the extent possible one class of licensees paying for the cost of regulation for another.

The proposed regulations also have the added benefit of promoting and reinforcing compliance with the NSC Act, associated regulations, and licence conditions by enabling the CNSC to adjust the fees in accordance with the compliance records of licensees. This will provide a financial incentive to licensees to comply with their regulatory obligations. Furthermore, these proposed changes will promote efficient resource allocation at the CNSC by using the generated cost information. This benefits the Canadian public by improving the CNSC's regulatory effectiveness and efficiency.

Costs

The structure of the CNSC's proposed new fees will be significantly different from the current approach. This is due to the changes made to improve the measurement and allocation of costs and to link explicitly the fees charged to the costs of regulatory activities required for a particular licence or group of licences. The proposed new fees are expected to involve increases for many licensees (some significant), and reductions for others.

The following table shows fee increases by category of percentage increase for both the pre-consultation fee calculation and the revised fee calculation following the CNSC's changes to its cost recovery program based on licensee feedback. The table also illustrates the dollar value range of fee increases.

Projected Impact on CNSC Fee-paying Licensees

Fee Increase	Percentage and Number of Licensees Pre-consultation Estimate	Percentage and Number of Licensees Revised Fees Estimate	Range of Fee Increase (decrease) $$$
Over 500%	2 % (42)	1% (12)	$1,800 to $12,600
250 to 500%	4% (68)	2% (31)	$1,500 to $22,700
100 to 250%	10% (174)	7% (126)	$350 to $100,000
50 to 100%	13% (231)	9% (162)	$500 to $1,500,000
25 to 50%	20% (351)	18% (301)	$100 to $4,800,000
0 to 25%	15% (257)	28% (477)	$50 to $455,000
Fee Reduction	36% (611)	35% (597)	($50) to ($100,000)

Over one third of all licensees will realize a decrease in fees. This is a reflection of the cost recovery program's focus on eliminating any cross-subsidization of fees. Overall, the increase in fees is 41 percent. Seventy percent of the projected overall revenue will be paid by the four power reactor licensees.

The following is an analysis of those most severely impacted, i.e. by more than 100 percent:

The group of licensees with the largest percentage increase (over 500 percent) is comprised of 12 large companies who hold multiple licences for radioactive devices or gauges. They are also classified as high-risk. The dollar value of the increase is relatively small ($1,800 to $12,000) with an average increase of $7,000. Currently, these large licensees are paying the same amount as licensees with fewer locations and devices.

There are 31 companies who hold multiple licences for radioactive devices or gauges whose fee increases range from 250 to 500 percent. The average increase for this group is $5,800 and, again, these are classified as high-risk.

The next group of significant fee increases (100 to 250 percent) consists of 124 substances licensees with an average increase of $3,000. The other two licensees are major nuclear facilities with the higher fee increases of $28,000 and $100,000. For these two major facilities, regulatory activity plans will be provided to explain the fees.

Conclusion

According to federal policy, the CNSC is required to charge for regulatory services. Currently the fees for these services are not in line with the costs; therefore, new Cost Recovery Fees Regulations are required.

Consultation

Cost Recovery Advisory Group

The federal government's Cost Recovery and Charging Policy (1997) "emphasizes the need for participatory consultation between departments and agencies and their stakeholders before introducing or amending user charges, and on a continuing basis thereafter." As part of its efforts to establish processes for ongoing consultation with stakeholders and in line with the program principle of increased openness with regard to cost recovery, the CNSC has established a Cost Recovery Advisory Group. Group members consist of stakeholder representatives from the CNSC and industry.

The mandate of the Cost Recovery Advisory Group is to:

— be a forum for ongoing consultation with stakeholders regarding the CNSC's regulatory activities and resulting fees;

— provide input to the CNSC on stakeholder concerns regarding the potential impact of any proposed increase in fees;

— provide feedback to the CNSC on the process for making changes to the fees; and

— discuss alternative models for future amendments to cost recovery fees.

Ongoing consultations on cost recovery fees will benefit both stakeholders and the CNSCS by:

— generating a common understanding of the CNSC's cost recovery program and fees;

— providing licensees with the opportunity to advise the CNSC of the impact of regulatory fees on their industries;

— providing private sector insight into the CNSC's cost structure and ways to improve the program delivery; and

— providing the CNSC with feedback on its costs and expenditure streamlining initiatives and on other aspects of the program.

Pre-consultation

The CNSC conducted extensive pre-consultations with licensees and stakeholders, followed by a self-evaluated Business Impact Test (BIT). The focus of these consultations was on the proposed fee structures and on-going management of cost recovery.

All licensees and key stakeholders were advised of the pre-consultation process through a letter in March 2002 notifying them of proposed new CNSC Cost Recovery Fees Regulations. All fee-paying licensees received an outline of their proposed 2003-04 fees. Information was also posted on the CNSC Web site, including the consultation document, which explained the new fee structure and the CNSC cost recovery program. Stakeholders and licensees could request additional information by electronic mail or through a toll-free telephone number.

Licensees were encouraged to provide feedback through participation in the CNSC consultation meetings, completion of a Summary Comments Form, and/or submission of written comments/presentation. Ten half-day consultation meetings were held between April 25, 2002, and May 15, 2002, in Toronto, Ottawa, Saskatoon, Edmonton, Vancouver, Halifax and Montréal. The sessions were conducted in both official languages. The Cost Recovery Advisory Group was instrumental in structuring consultation information and will continue to facilitate ongoing, meaningful consultation with the fee-paying community.

In total, 142 organizations provided comments; of these, 75 participated in the meetings and an additional 67 provided written or verbal comments. The CNSC received comments from all licensee groups with almost a 100 percent response rate from major fee-paying licensees; as indicated below, this group, although comprised of a small number of organizations, contributes the bulk of CNSC revenue. Conversely, the largest group of licence holders — Nuclear Substances and Prescribed Equipment — contributes a relatively small amount to CNSC recoverable costs.

The following table shows the percentage of licensees in each category responding as part of the pre-consultation process by licence type and by contribution to the total projected recoverable costs of $49 million.

Type of Licence	Participation by Licence Type (%)	Contribution to Total Projected Revenue (%)
CLASS I Nuclear Facilities
Power Reactors & Heavy Water Plants	100	61.3
Non-Power Reactors	100	< 1
Nuclear Research and Test Establishments	100	6.9
Particle Accelerators	100	1.0
Uranium Processing Facilities	83.3	2.5
Nuclear Substance Processing Facilities	100	1.0
Radioactive Waste Facilities	100	1.9
Fusion Facilities	100	1.0
CLASS 2 Nuclear Facilities	57.1	< 1
Uranium Mines & Mills	94.1	7.2
Waste Nuclear Substances	100	< 1
Dosimetry Services	100	< 1
Nuclear Substances and Prescribed Equipment	9.5	2.1
Total	12.5	86.4

The pre-consultation process was very well received with a number of licensees commending the CNSC for its efforts to seek stakeholder feedback. The CNSC Audit and Evaluation Group examined the pre-consultation process and found that it was well planned and executed, that it met federal policy expectations and that it was appreciated by external stakeholders.

Overall, those licensees who provided comments indicated support for the general direction of the CNSC's cost recovery proposal and represented 86 percent of the CNSC's total projected revenue. The need for change was recognized and accepted and comments offered were constructive and forward looking. However, licensees had many questions and specific issues with some key areas of the proposal.

The CNSC carefully assessed all feedback and, whenever possible, revised the cost recovery program. Options were weighed against the CNSC's mandate and varied stakeholder requirements. One example of how CNSC is proposing to respond to concerns from licensees on potential negative impact on business is the introduction of a phase-in of the new fees regulations. These issues are discussed below.

1. Of the licensees who provided comments, the vast majority are facing fee increases. Almost all indicated that the size of the proposed increase appears to be unreasonable. Of prime concern was the proposed hourly rate.

The hourly rate is a corporate hourly rate, determined annually, based on the full cost of its regulatory activities divided by the total number of hours spent by technical staff performing licensing and compliance work. This rate includes costs such as salaries, benefits, travel, training, rent, administration, etc.

CNSC current fees are based on the actual costs for the 1992-93 fiscal year. Proposed changes to CNSC fees reflect a cost recovery adjustment over a ten-year period. Since 1992-93, the CNSC's annual operating expenditures increased at a compound rate of 4.9 percent per year and are estimated to increase by an average of 3.7 percent per year between 2000-01 and 2003-04. Personnel, counted as Full Time Equivalents (FTEs), increased at a lesser rate — an average of 3.3 percent per year from 1992-93 to 2000-01 and are estimated to increase by an average of 0.6 percent from 2000-01 to 2003-04. Cost recovery revenues were equivalent to 69 percent of operating expenditures in 1997-98, the first full year of the current Cost Recovery Fees Regulations, and then fell in each subsequent year, reaching 59 percent in 2000-01.

All of these increases are reflected in the proposed $200 hourly rate for the 2003-04 fiscal year.

Funding and resource requirements have increased since the development of the current fees regulations. This growth has been largely due to inflationary increases since 1992-93, but it is also due to the requirements for additional regulatory effort. The level of regulatory effort has increased as a result of:

— the introduction of the new NSC Act, which has expanded the CNSC's regulatory mandate, notably for environmental protection. It has increased regulatory effort in such areas as the environment, decommissioning, financial guarantees, worker protection and quality assurance;
— the events of September 11, 2001 and the increased public awareness of the dangers related to the nuclear industry. This has prompted increases in required levels of domestic licence assessment, international safeguards and compliance efforts;
— the introduction, in 2000, of licensing requirements for dosimetry services that provide independent measurement and verification of the doses received by industry workers;
— the proclamation, in 1995, of the Canadian Environmental Assessment Act, which imposed new and significant regulatory requirements to ensure protection of the environment;
— the transfer of regulatory responsibilities for pressure retaining components in nuclear facilities, as a result of a Supreme Court Ruling in 1993, from provincial to federal jurisdiction; and,
— the expanded use of nuclear technology, such as in the medical field.

2. Most of the comments with regard to the costing framework focused on the CNSC's intention to recover costs for activities that are perceived by the licensees to be of benefit to the public (i.e. regulatory guides and standards).

The CNSC has reviewed the activities involved in the design, delivery and support of its regulatory mandate against the provisions of the NSC Act and guidelines in the federal government's Cost Recovery and Charging Policy to determine which activities are cost-recoverable and which are non-recoverable.

Fees will be set fairly and equitably to recover the costs of activities that confer direct benefits of users, across all classes or users. Recoverable fees are for those CNSC activities incurred primarily as a result of the CNSC's regulatory responsibilities. Regulatory guides and standards assist licensees to conform to the requirements under the NSC Act, and, accordingly, are cost-recovered. Costs of activities carried out in support of other commitments or responsibilities of the federal government are borne by the Government.

3. Licensees commented on the need for cost containment mechanisms within the CNSC. Licensees also felt that the CNSC should implement service standards and performance measures in conjunction with the cost recovery program.

The CNSC is committed to ensure that the CNSC regulatory regime is effective and efficient. Regulatory effectiveness equates with safety, and safety is always the first priority of the CNSC. Regulatory efficiency provides value-for-money for both the public and licensees through increased confidence that resources are directed to where they are most needed to fulfill CNSC's mandate.

Several initiatives that draw upon principles of Modern Comptrollership are underway to address effectiveness and efficiency. Fundamental to this process was a restructuring of the organization to enable a clearer definition of authorities and accountabilities. A risk-informed process is now being used to prioritize regulatory activities and determine resource requirements. In conjunction with this, management systems have been put in place to allow managers to accurately track resource use. The CNSC is also developing risk-informed decision-making processes for CNSC staff that embrace the notion of expert judgment. As a pilot project, a preliminary set of regulatory performance indicators, developed with the Nuclear Energy Agency, will be used this year.

The CNSC is also moving to a standardized compliance program that will communicate clearly to licensees the requirements for compliance. This will assist licensees to meet priority requirements as well as promote consistency in enforcement by CNSC staff.

4. Several organization representatives questioned their status as fee-paying licensees and asked to be reclassified as exempt.

The CNSC has identified two institutions which are wholly-owned by universities and carry out advanced research in an academic setting, but which, by reason of the nature of their incorporation, do not meet the definition of educational institution as found in the current Cost Recovery Fees Regulations. The CNSC is proposing to slightly expand the current definition of licensees exempt from paying fees to include non-commercial institutions that are wholly owned by the education institutions that are exempt from paying fees under the current definition. The two licensees would be exempt from fees by this change and have an estimated cost of regulation of approximately $350,000.

The CNSC is also proposing to exempt "first responders" from paying fees. First responders are defined as those organizations that intervene in response to incidents in order to save lives (e.g. fire departments, explosive or hazardous material teams, police departments, emergency medical/ambulance organizations). First responders are not currently licensees, but in response to events of September 11th, 2001, the federal government will be training first responders to respond to chemical, biological, radiological and nuclear emergencies, as part of Canada's emergency preparedness network. To facilitate training, these agencies will be required to possess low-power radioisotopes and licences which require licensing by the CNSC. The cost of regulation related to these to-be-exempt licensees is not expected to be significant.

5. Given that the cost recovery proposal now directly links level-of-effort to fees, the level of regulatory activity necessary to fulfill CNSC's mandate was questioned by licensees at all face-to-face meetings.

Cost recovery practices and fees will not compromise the effectiveness of the CNSC to protect the health, safety, security and the environment, nor Canada's commitments on peaceful use of nuclear energy. That being said, the CNSC is committed to regulatory efficiency and has made, and continues to make, numerous efforts to reduce administrative and other costs and to redirect resources to strategic priorities and core regulatory activities. Changes have been made to the CNSC's management processes and reporting systems so that actual activities (which are predominantly time-based) and expenditures can be compared to budgeted activities on a regular basis. This will also allow the CNSC to ensure that resource allocation is in line with regulatory priorities.

6. Many licensees expressed agreement with the concept of a formula to calculate fee amounts based on regulatory effort, noting that the underlying principles are fair. There was virtually no support for maintaining the existing flat-fee structure. The majority of licensees also supported the risk-and-performance-based approach to fee calculation. There were, however, many comments on the weightings assigned to the variable components of the formulas. Numerous suggestions were offered regarding modifications to the formulas to enhance flexibility on usage, type, number of locations and size of business operations.

As a result of comments from consultation with licensees, the CNSC has reviewed the level of effort assigned to all classes of licences. The CNSC has changed the formula weightings to reflect such factors as a scaling for varying volumes of nuclear substances held and to include specific fees for new licences. The recalculation of fees following these changes has reduced the overall impact of fee increases for a majority of licensees.

7. While licensees appear to favour a compliance-based approach to fee calculation, most were not in support of an across-the-board initial compliance rating. Some felt that licensees with a history of poor compliance should immediately pay more, while others felt that organizations with excellent compliance records (supported by internal safety programs and recognized certification such as ISO 9000) should be given a lower numerical compliance rating, thereby reducing their overall fee payment.

Users of nuclear substances would have their licence fees determined, in part, by a compliance factor. As for the assignment of a lower initial compliance rating to good performers, the rating is already based on the minimum level of regulatory effort to meet requirements under the NSC Act. The compliance factor will be initially set at the minimum "1.0" for all licensees. The CNSC feels that, in fairness to all licensees, implementation of the new cost recovery program should recognize an across-the-board compliance rating of "1.0" for the first year, as opposed to retroactively charging licensees for past poor performance. This factor, in future years, will be used to adjust the fee for extra costs that may be incurred due to poor compliance.

8. The CNSC received several comments of support for its intention to establish fees for any given year on the basis of planned level of regulatory activity. An increased flow of information between the CNSC and licensees over both planned activities and actual level of effort for those activities was seen to be one of the most positive aspects of the new cost recovery program. Licensees did request a phase-in to assist with the financial impact on business. There is also an issue of fairness during transition for licensees that currently pay bi-annual fees upon issuance or renewal of a licence.

The CNSC is proposing a phase-in of licence fees to minimize the business impact of fee increases on industry. In determining a recommended approach for a phase-in, the following factors were considered: equity, public fairness, fairness to the licensees, administrative complexity and government revenue.

The CNSC proposes a phase-in for all licensees whereby 85 percent of recoverable costs are recovered in the first year and 100 percent of recoverable costs are recovered in the second year. This will lessen the impact of fee increases and allow licensees some time to plan and adjust for the increase. Although the taxpayer will continue to bear some costs, this will be minimized by a short phase-in period. Revenues in the first year will still be above current levels, with an increase to full recovery in the second year.

The CNSC is also proposing transition rules for nuclear substance licences, which are written in favour of the licensees. They are currently issued two-year licences. The new fees will only apply upon renewal or extension of their licence.

9. Several licensees commented on the apparent weakness of the dispute resolution process in the CNSC's proposal; a core issue appears to be the establishment of some avenue for contesting the level of regulatory activity upon which fees would be based. Licensees were also concerned about the lack of an independent body in this process.

The CNSC has the legal mandate to determine the required level of regulatory oversight needed to ensure safety. While the CNSC proposes to be open to licensee concerns, it cannot entertain appeals on its discretion in this area. The CNSC proposes to amend the Terms of Reference for the Cost Recovery Advisory Group to provide a window of opportunity for discussing regulatory issues of broad concern to licensees. The CNSC will also formalize the current process within the CNSC for resolving disputes over regulatory activities. Licensees will have access to the senior managers (Director General and Vice-President) responsible for regulating their type of licence.

10. Many licensees indicated a need for more information, particularly of the proposed fee amounts.

Regulatory activity plans will be shared with licensees. These plans, along with fee estimates, will be provided to licensees prior to the start of the fiscal year to which the fees relate. The level of regulatory effort and cost will be open, in contrast to the little or no information currently provided. The CNSC is also committed to improve reporting on costs and revenues to Parliament through its Report on Plans and Priorities and the Departmental Performance Report.

Business Impact Test

The pre-consultation outlined above was followed by the Business Impact Test (BIT). The BIT was administered by a third party through a questionnaire posted on the CNSC's Web site. Only 90 licensees, out of a total of approximately 1 700 fee-paying licensees, replied. These 90 respondents break naturally into two groups. The first group, "Major Licence Holders" consists of nine respondents, out of a possible thirty-two, who hold licences for Power Reactors, Non-power Reactors, Nuclear Research and Test Establishments, High Power Particle Accelerators, Uranium Processing Facilities, Nuclear Substance Processing Facilities, Pool-Type Irradiators and Uranium Mines/Mills. The second group consists of 81 firms that use nuclear substances or equipment containing nuclear substances in their businesses, but who do not consider themselves to be part of the Canadian nuclear industry.

Only two (2) of the nine major licence holders who replied to the survey indicated that they would be strongly affected by the proposals. The first, the operator of a non-power reactor, suggested that the proposed fee increases might be enough to force a premature shutdown of their operation. The second, a manufacturer of products containing tritium, claimed that these proposals would significantly reduce their ability to compete in a "very competitive international marketplace". No significant trends were noted for the remaining seven respondents.

The other 81 respondents, users of nuclear substances, further subdivided into two groups. The first group, consisting of 49 holders of licences for fixed gauges, portable gauges and industrial radiography, expect a significant impact as a result of the proposed fee revisions. They indicated that there would be major decreases in revenues, negative effects on existing and potential markets, negative effects on customers and clients, and a negative impact on their ability to meet customer requirements. They were also concerned that, with a limited ability to pass on the fee increase to their clients and customers, there would be a significant and negative impact on their cash flow, profitability, ability to weather financial fluctuations, and long-term return on investment. They stated that it might result in their changing to an alternative (non-nuclear) technology or ceasing the activities requiring a licence altogether.

The remaining 32 users of nuclear substances were less concerned about the impact of the proposed fee increases. While some indicated that they might look for alternate ways of conducting their business, including contracting out work or reducing the number of employees, others felt that the level of fees was reasonable. Some of these respondents also felt that there were definite benefits from CNSC's program: a level playing field, public confidence and inability to operate without CNSC support. Others felt that the fees were too high already, and suggested that benefits from CNSC's program were minor, and that they would like to see their fees reduced.

The BIT was not intended to produce statistically valid outputs, but rather to focus on specific cases that fall outside the norm. The BIT response rate was quite low, only 5 percent of the fee-paying population took the opportunity to use the forum to communicate regulatory impact.

CNSC Response

In its revised proposed regulation, the CNSC has attempted, whenever possible, to address licensee concerns while remaining compliant with federal government policy. Attempts have also been made to mitigate the impact of fee increases through implementation and management (i.e. phase-in of the fee amounts and better provision of information). Licensees have been kept informed well in advance of implementation of the proposed changes; licensees have received a year's advance notice of proposed changes to the fees regulations.

Compliance and Enforcement

Licensing action by the CNSC is contingent upon fee payment in good standing by applicants and licensees. Failure to pay prescribed fees as required constitutes an offence under the NSC Act and its regulations as well as grounds for refusing to take the requested licensing action.

Subsection 24(2) of the NSC Act allows the Commission to issue, renew, suspend in whole or in part, amend, revoke or replace a licence on receipt of an application accompanied by the prescribed information and the fee.

Provision 48(k) of the NSC Act states that any person who fails to comply with this Act or any regulation made pursuant to this Act commits an offence under the NSC Act and is subject to enforcement action.

Contact

Peter Elder, Director, Regulatory Management and Government Relations, Canadian Nuclear Safety Commission, P.O. Box 1046, Station B, 280 Slater Street, Ottawa, Ontario K1P 5S9.

PROPOSED REGULATORY TEXT

Notice is hereby given, pursuant to subsection 44(12) of the Nuclear Safety and Control Act (see footnote a) , that the Canadian Nuclear Safety Commission, pursuant to subsection 44(1) (see footnote b)  of that Act and with the approval of the Governor in Council, proposes to make the annexed Canadian Nuclear Safety Commission Cost Recovery Fees Regulations.

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to the Canadian Nuclear Safety Commission, Cost Recovery Program, P.O. Box 1046, Station B, Ottawa, Ontario K1P 5S9.

Ottawa, January 30, 2003

EILEEN BOYD

Assistant Clerk of the Privy Council

CANADIAN NUCLEAR SAFETY COMMISSION COST RECOVERY FEES REGULATIONS

PART 1

GENERAL

Interpretation

1. The following definitions apply in these Regulations.

"Act" means the Nuclear Safety and Control Act. (Loi)

"actual full cost" means the full cost verified by audited financial statements. (coût entier réel)

"Class I nuclear facility" means a Class I nuclear facility as defined in the Class I Nuclear Facilities Regulations. (installation nucléaire de catégorie I)

"Class II nuclear facility" means a Class II nuclear facility as defined in the Class II Nuclear Facilities and Prescribed Equipment Regulations. (installation nucléaire de catégorie II)

"direct regulatory activities" means those activities, such as assessing applications, issuing licences and certificates, granting approvals and authorizations, verifying and enforcing compliance and providing information, products and services, that are required in order for the Commission to fulfil its regulatory responsibilities. (activités de réglementation directes)

"dosimetry services" means dosimetry services within the meaning of the Radiation Protection Regulations. (services de dosimétrie)

"fee period" means the 12-month period beginning on the date of issuance of a licence and, after that date, beginning on each anniversary date of the licence. (période d'application des droits)

"fiscal year" means the period beginning on April 1 in one calendar year and ending on March 31 in the next calendar year. (exercice)

"former Regulations" means the AECB Cost Recovery Fees Regulations, 1996. (ancien règlement)

"full cost" means the sum of the costs of the Commission's direct regulatory activities and indirect regulatory activities, including salaries and benefits, rental of office accommodation, supplies and equipment, professional services, communications, travel and training. (coût entier)

"indirect regulatory activities" means those activities that are in support of direct regulatory activities, such as management, training, administration, human resources, finance, information technology services and the preparation of documents, including policies, standards, guides, procedures and notices. (activités de réglementation indirectes)

"mine" or "mill" means a mine or mill as defined in the Uranium Mines and Mills Regulations. (mine ou usine de concentration)

"waste nuclear substance activities" means activities in relation to waste nuclear substances that are not located at a Class I or a Class II nuclear facility or at a mine or mill. (activités liées aux déchets de substances nucléaires)

Application

2. These Regulations do not apply to

(a) a secondary school or a specified educational institution as defined in subsection 2(1) of the Canada Student Loans Act;
(b) a not-for-profit organization that carries out research and is wholly owned by an institution referred to in paragraph (a);
(c) a not-for-profit institution that receives funds from the federal government, a provincial government or the government of a city, town or regional municipality and that provides medical services prescribed by a medical practitioner for the purpose of maintaining health, preventing disease or diagnosing or treating injury, illness or disability in patients;
(d) a not-for-profit organization that responds to accidents and incidents, such as a fire department, a police department, an emergency response service, an emergency medical service or an ambulance service; or
(e) a department as defined in section 2 of the Financial Administration Act.

PART 2

FEES BASED ON REGULATORY ACTIVITY PLANS

Application

3. This Part applies to applicants and licensees in respect of

(a) Class I nuclear facilities;
(b) mines and mills; and
(c) waste nuclear substance activities.

Estimated Annual Fee

4. (1) Before the beginning of each fiscal year, the Commission shall determine the estimated annual fee payable by an applicant or a licensee for that fiscal year based on the estimated full cost of the regulatory activity plan prepared by the Commission for the applicant's or licensee's facility or activity.

(2) Before the beginning of each fiscal year, the Commission shall notify each applicant or licensee, in writing, of the regulatory activity plan and the estimated annual fee payable.

Quarterly Invoicing

5. (1) On a quarterly basis, the Commission shall send each applicant or licensee an invoice for an amount equal to 25% of the estimated annual fee payable.

(2) Within 30 days after the date of the invoice, the applicant or licensee shall pay to the Commission the amount invoiced.

Annual Fee Adjustment

6. (1) Each year, following the end of the fiscal year, the Commission shall, for each facility or activity,

(a) determine the full cost, based on the actual full cost;
(b) calculate the fee adjustment by subtracting the estimated annual fee as determined under section 4 from the actual full cost; and
(c) notify the applicant or licensee in writing of the amount of the actual full cost and the amount of the fee adjustment.

(2) The Commission shall

(a) if the fee adjustment determined under paragraph (1)(b) is less than the estimated annual fee, refund the difference to the applicant or licensee or apply it against any amount payable by the applicant or licensee to the Commission; or
(b) if the fee adjustment determined under paragraph (1)(b) is greater than the estimated annual fee, invoice the applicant or licensee for an amount equal to the difference, and the applicant or licensee shall pay to the Commission that amount within 30 days after the date of the invoice.

Initial Application

7. (1) In the case of an initial application for a facility or activity for which an estimated annual fee has not been determined, the applicant shall pay to the Commission, with the application, a deposit of

(a) $25,000, if the application is in respect of a facility; or
(b) $5,000, if the application is in respect of a waste nuclear substance activity.

(2) On receipt of the application and deposit, the Commission shall determine the estimated annual fee payable for the current fiscal year in accordance with section 4.

(3) On a quarterly basis over the remaining quarters of the fiscal year after receipt of the application, the Commission shall invoice the applicant for the amount of the estimated annual fee payable, which is calculated on the basis of the number of quarters remaining in the fiscal year and is reduced by the amount of the deposit.

(4) Within 30 days after the date of the invoice, the applicant shall pay to the Commission the amount invoiced.

(5) After the end of the fiscal year, the estimated annual fee shall be adjusted in accordance with section 6.

Transitional Provision

8. If an applicant or licensee paid a fee or deposit under the former Regulations, the Commission

(a) in the case of an annual fee or a fee paid every two years, shall apply an amount equal to the fee paid for the number of days remaining in the fee period against the fees payable under this Part; and
(b) in the case of a deposit towards an hourly rate fee, shall apply any remaining balance of the deposit against any amount payable by the applicant or licensee to the Commission.

PART 3

FEES BASED ON FORMULAS

Application

9. This Part applies to applicants and licensees in respect of

(a) Class II nuclear facilities;
(b) dosimetry services; and
(c) nuclear substances and radiation devices, except with respect to applications and licences for waste nuclear substance activities.

Fee Formulas

10. (1) Fees under this Part shall be calculated in accordance with the fee formulas set out in Part 2 of Schedule 1.

(2) The fee formulas comprise

(a) base hours as described in section 11;
(b) variable hours as described in section 12;
(c) a compliance coefficient as described in section 13; and
(d) an hourly rate as described in section 14.

Base Hours

11. For each type of application or licence, the base hours are determined using

(a) hours spent by the Commission for the assessment of applications; and
(b) hours spent by the Commission in respect of verifying the licensee's compliance with regulatory requirements.

Variable Hours

12. For each type of application or licence, the variable hours are based on the additional number of hours of direct regulatory activities as a result of

(a) the number of treatment rooms, bunkers, laboratories and locations with separate postal addresses;
(b) the number of devices;
(c) the number of device manufacturers;
(d) the number of types of Class II prescribed equipment as defined in the Class II Nuclear Facilities and Prescribed Equipment Regulations.

Compliance Coefficient

13. For each type of licence, the compliance coefficient is based on the additional number of hours of direct regulatory activities spent by the Commission as a result of non-compliance by a licensee with regulatory requirements.

Hourly Rate

14. The hourly rate is the full cost divided by the total number of hours spent by the Commission on its direct regulatory activities.

Publication

15. Before the beginning of the fiscal year, the Commission shall publish, by electronic or other means likely to reach applicants and licensees, for each type of application or licence for a facility or activity set out in Part 1 of Schedule 1, the base hours, variable hours, compliance coefficient and hourly rate.

Payment of Fees

16. (1) On an initial application for a licence in respect of an activity or a facility listed in Part 1 of Schedule 1, the applicant shall pay the assessment fee and the annual fee determined in accordance with subsections (2) and (3).

(2) The assessment fee payable for a licence in respect of an activity or a facility listed in column 1 of Part 1 of Schedule 1 shall be calculated using the applicable fee formula set out in Part 2 of that Schedule, determined using the formula number set out in column 2 of Part 1 of that Schedule.

(3) The annual fee payable for a licence in respect of an activity or a facility listed in column 1 of Part 1 of Schedule 1 shall be calculated using the applicable fee formula set out in Part 2 of that Schedule, determined using the formula number set out in column 3 of Part 1 of that Schedule.

(4) On an initial application for a licence for an activity or a facility that is not listed in Part 1 of Schedule 1, the applicant shall pay the deposit and fees determined in accordance with Part 5.

(5) If an initial application is withdrawn by the applicant before the assessment of the application by the Commission has begun, the assessment fee and annual fee paid shall be refunded to the applicant or applied against any amount payable by the applicant to the Commission.

(6) If an initial application is withdrawn by the applicant or rejected by the Commission after the assessment of the application by the Commission has begun, the assessment fee paid shall not be refunded and the annual fee paid shall be refunded to the applicant or applied against any amount payable by the applicant to the Commission.

(7) A re-application after withdrawal by the applicant or rejection by the Commission shall be treated as a new initial application.

Invoicing

17. (1) Every year before the licence anniversary date, the Commission shall issue each licensee an invoice for the annual fee payable.

(2) The licensee shall pay the fee to the Commission by the later of 30 days after the date of the invoice and the licence anniversary date.

Fee Not Affected

18. Changes in the number of any of the items referred to in paragraphs 12(a) to (d) during the fee period do not affect the fee payable for that period.

Revocation of Licence

19. (1) If a licence is revoked within the first year after its issuance, there shall be no refund of the annual fee paid.

(2) If a licence is revoked after the first year of its issuance and the licensee has paid the annual fee for the current fee period,

(a) that fee shall be reduced by an amount equal to the product obtained by multiplying 25% of the annual fee paid by the number of full quarterly periods remaining in the fee period; and
(b) the Commission shall refund that amount to the former licensee or apply that amount against any amount payable by the former licensee to the Commission.

Transitional Provisions

20. (1) If, under the former Regulations, an applicant or a licensee paid an hourly rate fee or a deposit and

(a) a licence was issued before the coming into force of these Regulations, the fee payable under this Part shall be calculated in accordance with the number of remaining days in the current fee period, and any remaining balance of the fee or deposit paid shall be refunded or applied against any amount payable by the licensee to the Commission; or
(b) a licence was not issued before the coming into force of these Regulations, the applicant shall pay the assessment fee calculated in accordance with section 26.

(2) If, under the former Regulations, an applicant or a licensee paid an annual fee and

(a) a licence was issued before the coming into force of these Regulations,

(i) if the amount of the annual fee paid is more than the annual fee payable under this Part, the fee payable under this Part shall be calculated in accordance with the number of days remaining in the current fee period, and any remaining balance of the annual fee paid shall be refunded or applied against any amount payable by the licensee to the Commission, and
(ii) if the amount of the annual fee paid is less than the annual fee payable under this Part, the annual fee paid under this Part shall be payable on the earliest of the next licence anniversary, renewal or extension date; or

(b) if a licence was not issued before the coming into force of these Regulations,

(i) the annual fee under this Part shall be payable on the licence issue date,
(ii) if the amount of the annual fee paid is more than the annual fee payable under this Part, the difference shall be refunded or applied against any amount payable by the applicant to the Commission, and
(iii) if the amount of the annual fee paid is less than the annual fee payable under this Part, the applicant shall pay the difference to the Commission within 30 days after the invoice date.

(3) If, under the former Regulations, an applicant or a licensee paid a two-year fee and

(a) a licence was issued before the coming into force of these Regulations,

(i) if the amount of the annual portion of the fee paid is more than the annual fee payable under this Part, the fee payable under this Part shall be calculated in accordance with the number of days remaining in the current fee period, and any remaining balance of the fee paid shall be refunded or applied against any amount payable by the licensee to the Commission, and
(ii) if the amount of the annual portion of the fee paid is less than the annual fee payable under this Part, the fee under this Part shall be payable on the earlier of the licence extension or renewal date; or

(b) a licence was not issued before the coming into force of these Regulations,

(i) the annual fee under this Part shall be payable on the licence issue date,
(ii) if the amount of the annual portion of the fee paid is more than the annual fee payable under this Part, the difference shall be refunded or applied against any amount payable by the applicant to the Commission, and
(iii) if the amount of the annual portion of the fee paid is less than the annual fee payable under this Part, the applicant shall pay the difference to the Commission within 30 days after the invoice date.

(4) If, under the former Regulations, an applicant paid a one-time fee for the assessment of an application that is pending when these Regulations come into force,

(a) if the amount of the fee paid is more than the assessment fee payable under this Part, the difference shall be refunded or applied against any amount payable by the applicant to the Commission; and
(b) if the amount of the fee paid is less than the assessment fee payable under this Part, no additional assessment fee shall be payable by the applicant.

(5) If, under the former Regulations, an applicant or a licensee paid a one-time fee for the issuance of a licence and

(a) a licence was issued before the coming into force of these Regulations, the fee under this Part shall be payable on the earliest of the licence anniversary, renewal or extension date; or
(b) a licence was issued within the 12-month period before the coming into force of these Regulations and the fee paid is more than the annual fee payable under this Part, the difference shall be refunded or applied against any amount payable by the licensee to the Commission.

PART 4

FIXED FEES

Application

21. This Part applies to applicants in respect of

(a) licences to transport nuclear substances under the Packaging and Transport of Nuclear Substances Regulations, except licences to package or transport under special arrangement;
(b) certifications of package designs under the Packaging and Transport of Nuclear Substances Regulations, except certifications of designs for special form radioactive material;
(c) certifications of radiation device models under the Nuclear Substances and Radiation Devices Regulations;
(d) certifications of Class II prescribed model of equipment under the Class II Nuclear Facilities and Prescribed Equipment Regulations; and
(e) certifications of exposure device operators under the Nuclear Substances and Radiation Devices Regulations.

Payment of Fees

22. For each type of application set out in column 1 of Schedule 2, the applicant shall pay, with the application, the fee set out in column 2.

Withdrawal

23. If an application is withdrawn by the applicant after the assessment of the application by the Commission has begun, there shall be no refund of the fee paid.

Transitional Provision

24. If an application is pending under the former Regulations on the coming into force of these Regulations, the applicant shall pay the fee calculated in accordance with section 26.

PART 5

SPECIAL PROJECT FEES

Application

25. This Part applies to applicants and licensees for special projects in respect of

(a) licences to package or transport under special arrangement under the Packaging and Transport of Nuclear Substances Regulations;
(b) certifications of designs for special form radioactive material under the Packaging and Transport of Nuclear Substances Regulations;
(c) licences or certifications not referred to in Part 3 or 4; and
(d) information, products or services not referred to in Part 3 or 4.

Calculation of Fee

26. For each special project, the fee payable under this Part is equal to the sum of

(a) the product obtained by multiplying the hourly rate referred to in section 14 by the number of hours of direct regulatory activities
and
(b) if the Commission obtains professional and special services under contract, the cost of those services.

Application Deposit

27. (1) The applicant shall deposit, with the application, the sum of $5,000.

(2) The Commission shall apply the deposit against the fee payable.

(3) On completion of a special project, any remaining balance of the deposit paid shall be refunded to the applicant or applied against any amount payable by the applicant to the Commission.

Invoicing

28. (1) On a monthly basis, the Commission shall send each applicant and licensee an invoice for the fees payable.

(2) Within 30 days after the date of the invoice, the applicant or licensee shall pay to the Commission the amount invoiced.

Transitional Provision

29. If, under the former Regulations, an applicant or a licensee paid an hourly rate fee or deposit, any remaining balance of the fee or deposit paid shall be refunded or applied against any amount payable by the applicant or licensee to the Commission.

PART 6

TRANSITIONAL, REPEAL AND COMING INTO FORCE

Transitional Provision

30. Any fees payable within the 12-month period after the coming into force of these Regulations shall be reduced by 15%.

Repeal

31. The AECB Cost Recovery Fees Regulations, 1996 (see footnote 1)  are repealed.

Coming into Force

32. These Regulations come into force on the day on which they are registered.

SCHEDULE 1
(Sections 10, 15 and 16)

PART 1

FEE FORMULA NUMBERS

Item	Column 1 Activity, Facility, Device or Substance	Column 2 Formula Number for Assessment Fee	Column 3 Formula Number for Annual Fee
	Facilities
1.	Linac and/or electrostat particle accelerator research facility
	(a) construct	1	1
	(b) operate	1	1
	(c) decommission	1	N/A
2.	Positron Emission Tomography cyclotron facility
	(a) construct	1	1
	(b) operate	1	1
	(c) decommission	1	N/A
3.	Particle accelerator geophysical logging facility, operate	2	2
4.	Particle accelerator medical facility
	(a) construct	10	1
	(b) operate	10	10
	(c) decommission	1	N/A
5.	Pool type irradiator facility
	(a) construct	1	1
	(b) operate	1	1
	(c) decommission	1	N/A
6.	Calibration irradiator facility
	(a) construct	1	1
	(b) operate	1	1
	(c) decommission	1	N/A
7.	Other irradiator facility
	(a) construct	1	1
	(b) operate	1	1
	(c) decommission	1	N/A
8.	Radioactive source teletherapy machine
	(a) construct	10	1
	(b) operate	10	10
9.	Brachytherapy facility — remote after loader
	(a) construct	10	1
	(b) operate	10	10
10.	Brachytherapy facility — intravascular, operate	1	1
11.	Service — Class II nuclear equipment, operate	11	11
	Dosimetry Services
12.	Commercial — external radiation	1	1
13.	Commercial — internal radiation	1	1
14.	Commercial — radon progeny	1	1
15.	Commercial — consolidated licence (any 2 of external radiation, internal radiation and radon progeny)	1	1
16.	In-house — external radiation	1	1
17.	In-house — internal radiation	1	1
18.	In-house — radon progeny	1	1
19.	In-house — consolidated licence (any 2 of external radiation, internal radiation and radon progeny) Nuclear Substances and Radiation Devices	1	1
20.	Consolidated uses of nuclear substances	6	6
21.	Gauges
	(a) fixed gauges	2	7
	(b) portable gauges	1	7
22.	Industrial radiography	8	7
23.	Nuclear medicine and human research
	(a) diagnostic nuclear medicine	2	2
	(b) therapeutic nuclear medicine	2	2
	(c) human research	1	2
24.	Petroleum exploration and production
	(a) logging — sealed source	2	2
	(b) other petroleum exploration and production	2	2
	(c) borehole tube tagging	1	2
25.	Servicing, installation and dismantling of devices
	(a) basic servicing — portable gauges or fixed gauges (not both)	1	3
	(b) complex servicing — radiography devices or any combination of portable gauges, fixed gauges and radiography devices	1	3
26.	Unsealed nuclear substances
	(a) lab studies	2	9
	(b) processing a quantity not exceeding 10 GBq	1	1
	(c) processing a quantity exceeding 10 GBq	1	1
	(d) repair of components containing radioactive luminous compounds	1	1
	(e) veterinary nuclear medicine	2	2
	(f) manufacturing of sealed sources	1	1
27.	Sealed sources and radiation devices
	(a) low risk	1	1
	(b) medium risk	1	1
28.	Distribution of nuclear substances
	(a) drop shipment	1	1
	(b) open source	1	2
	(c) sealed source	1	2
29.	Sealed sources — Group II
	(a) device manufacturing	1	1
	(b) calibration	1	1
	(c) medium risk	1	1
30.	Manual brachytherapy	1	4
31.	Development and testing of devices	1	1
32.	Possession of deuterium	1	1
33.	Storage — long term (for 1 year or more)	N/A	5

PART 2

FEE FORMULAS

Formula Number	Fee Formula
1.	base hours × hourly rate × compliance coefficient
2.	[base hours + (variable hours per location × number of locations)] × hourly rate × compliance coefficient
3.	[base hours + (variable hours per device manufacturer × number of device manufacturers)] × hourly rate × compliance coefficient
4.	[base hours + (variable hours per treatment room × number of treatment rooms)] × hourly rate × compliance coefficient
5.	[base hours + (variable hours per device × number of devices)] × hourly rate × compliance coefficient
6.	[base hours + (variable hours per laboratory × number of laboratories)] × hourly rate × compliance coefficient
7.	[base hours + (variable hours per location × number of locations) + (variable hours per device × number of devices)] × hourly rate × compliance coefficient
8.	[base hours + (variable hours per device manufacturer × number of device manufacturers) + (variable hours per bunker × number of bunkers)] × hourly rate × compliance coefficient
9.	[base hours + (variable hours per location × number of locations) + (variable hours per lab × number of labs)] × hourly rate × compliance coefficient
10.	[base hours + (variable hours per bunker × number of bunkers)] × hourly rate × compliance coefficient
11.	[base hours + (variable hours per type of Class II equipment × number of types of Class II equipment)] × hourly rate × compliance coefficient

SCHEDULE 2
(Section 22)

FIXED FEES

Item	Column 1 Type of Application	Column 2 Fee
1.	An application for a licence to transport nuclear material, other than a licence to transport under special arrangement	$500
2.	Except in respect of a certification for the package design of a special form radioactive material, an application for certification of a package design
	(a) having an "A" (see note) value not exceeding 1 with fissile material
	(i) assessment of a new package design	$8,000
	(ii) assessment of a package design similar to a certified package design	$2,650
	(iii) assessment of a package design identical to a certified package design	$1,000
	(b) having an "A" value greater than 1 and not exceeding 10 with no fissile material
	(i) assessment of a new package design	$12,000
	(ii) assessment of a package design similar to a certified package design	$4,000
	(iii) assessment of a package design identical to a certified package design	$1,000
	(c) having an "A" value greater than 1 and not exceeding 10 with fissile material
	(i) assessment of a new package design	$20,000
	(ii) assessment of a package design similar to a certified package design	$6,650
	(iii) assessment of a package design identical to a certified package design	$1,000
	(d) having an "A" value greater than 10 and not exceeding 100 with no fissile material
	(i) assessment of a new package design	$14,000
	(ii) assessment of a package design similar to a certified package design	$4,650
	(iii) assessment of a package design identical to a certified package design	$1,000
	(e) having an "A" value greater than 10 and not exceeding 100 with fissile material
	(i) assessment of a new package design	$22,000
	(ii) assessment of a package design similar to a certified package design	$7,350
	(iii) assessment of a package design identical to a certified package design	$1,000
	(f) having an "A" value greater than 100 and not exceeding 3000 with no fissile material
	(i) assessment of a new package design	$20,000
	(ii) assessment of a package design similar to a certified package design	$6,650
	(iii) assessment of a package design identical to a certified package design	$1,000
	(g) having an "A" value greater than 100 and not exceeding 3000 with fissile material
	(i) assessment of a new package design	$28,000
	(ii) assessment of a package design similar to a certified package design	$9,300
	(iii) assessment of a package design identical to a certified package design	$1,000
	(h) having an "A" value greater than 3000 with no fissile material
	(i) assessment of a new package design	$24,000
	(ii) assessment of a package design similar to a certified package design	$8,000
	(iii) assessment of a package design identical to a certified package design	$1,000
	(i) having an "A" value greater than 3000 with fissile material
	(i) assessment of a new package design	$32,000
	(ii) assessment of a package design similar to a certified package design	$10,650
	(iii) assessment of a package design identical to a certified package design	$1,000
3.	An application for certification of a radiation device model
	(a) Type 1 — A device containing nuclear substances in a quantity greater than the exemption quantity and not exceeding 10 times that quantity	$1,500
	(b) Type 2 — A device containing nuclear substances in a quantity equal to or exceeding 10 times the exemption quantity for the following: Bone mineral analysis, dew point detection, electronic component testing, fuel gauging, low energy imaging, liquid scintillation counting, radioluminescence, static detection, static elimination, smoke detection, surge voltage protection and x-ray fluorescence analysis	$3,000
	(c) Type 3 — A device containing nuclear substances in a quantity equal to or exceeding 10 times the exemption quantity for the following: Beta backscatter gauging, calibration, fixed gauges and portable gauges	$6,000
	(d) Type 4 — A device of the following type: radiography device, self shielded irradiator and neutron activator	$9,000
4.	An application for certification of Class II prescribed equipment	$9,000
5.	An application for certification of an exposure device operator	$1,000

NOTE : "A" value" means the maximum number obtained by dividing the radioactivity in the package design by the appropriate "A₁" or "A₂" value as defined in the Packaging and Transport of Nuclear Substances Regulations.

[5-1-o]

Footnote a 

S.C 1997, c. 9

Footnote b 

S.C. 2001, c. 34, s. 61

Footnote 1 

SOR/96-412

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