Standby Support--Supporting Statement 03 01 07

Supporting Statement: Standby Support Program
OMB Control Number – New Collection
1. Explain the circumstances that make the collection of requested information necessary.
The Department of Energy issued interim final regulations on it’s Standby Support Program in the
Federal Register on May 15, 2006 as an initial step to implement section 638 of the Energy Policy
Act of 2005, which authorizes the Secretary of Energy to enter into up to six Standby Support
Contracts with sponsors of advanced nuclear power facilities to provide risk insurance for certain
delays attributed to the regulatory process or litigation. Such insurance is intended to reduce
financial disincentives and uncertainties for sponsors that are beyond their control in order to
encourage investment in the construction of new advanced nuclear facilities. By providing
insurance to cover certain of these risks, the Federal government can reduce the financial risk to
project sponsors that invest in advanced nuclear facilities that the Administration and Congress
believe are necessary to promote a more diverse and secure supply of energy for the Nation.
The interim final rule permits sponsors to enter into Standby Support Contracts as early as
practicable; however, the Department recognizes that it will take years before sponsors can enter
into contracts with the Department since they must receive all the required approvals, notably the
issuance of a combined license from the Nuclear Regulatory Commission (i.e., Commission). As a
result, the Department will first enter into “conditional agreements” with sponsors that would
commit the Department to enter into Standby Support Contracts with the first six project sponsor
who have met the requirements of the conditional agreements and section 638 (including the
provision of adequate budgetary resources) have been satisfied. Such a two-step implementation
process: (1) conditional agreement followed by (2) standby support contract, allows the
Department and potential sponsors to manage the difficult timing issues inherent in both the federal
appropriations process and business concerns in planning and financing a multi-billion dollar
advanced nuclear facility.
Section 950.10(b) of the interim final rule states that a sponsor may enter into a Conditional
Agreement from the time the Commission dockets its combined license application but before the
Commission has issued the license. The Department notes that it will likely take several years for
the Commission to issue the combined license, a time period which the Department has
determined is sufficient for a sponsor to decide whether it wants to participate in the Standby
Support Program.
The interim final rule further requires a sponsor that plans to enter into a Conditional Agreement to
provide certain information including: (1) an electronic copy of the combined license application
docketed by the Commission pursuant to 10 CFR part 52; and if applicable, an electronic copy of
the early site permit or environmental report referenced or included with the sponsor’s combined
license application; (2) a summary schedule identifying the projected dates of construction, testing
and full power operation; (3) a detailed plan of intended financing for the project including the
credit structure and all sources and uses of funds for the project, and the projected cash flows for
all debt obligations of the advanced nuclear facility which would be covered under the Standby
Support Contract; (4) the sponsor’s estimate of the amount and timing of the Standby Support
payments for debt service under covered delays, and (5) the estimated dollar amount to be
allocated to the sponsor’s covered costs for principal or interest on the debt obligation of the
advanced nuclear facility and for incremental costs, including whether these amounts would be
different if the advanced nuclear facility is one of the initial two reactors or one of the subsequent
four reactors.
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The Department notes that this information is needed to determine the score under the Federal
Credit Reform Act of 1990 (FCRA). This documentation requirement should pose only a nominal
burden on a sponsor because the sponsor likely has this information readily available in the normal
course of obtaining financing for the advanced nuclear facility and Commission approval for a
combined license. The Department will not use this documentation to select among potential
sponsors. Rather, the actual awarding of a Standby Support Contract is based on fulfillment of the
requirements and conditions in the Conditional Agreement, including the Commission’s issuing of
a combined license and the sponsor’s commencement of construction (i.e., the pouring of safetyrelated concrete for the reactor building). This documentation will allow the Department’s
representative, the Program Administrator, to enter into a Conditional Agreement and to monitor
the progress of various competing sponsors, prior to entering into Standby Support Contracts. This
relatively modest information requirement is in lieu of an application process similar to those
required by the Department of Transportation’s Transportation Infrastructure Finance and
Innovation Act (TIFIA) program or the Overseas Private Investment Corporation (OPIC).
In Section 950.12 the Department require that all the conditions precedent to a standby support
contract have been fulfilled, including that the sponsor has: (1) a conditional agreement with the
Department, (2) a combined license by the Commission, (3), all Federal, State and local permits,
(4) proof that construction has commenced, (5) required insurance, (6) pay any required fees in
either the Program and or Grant Accounts, (7) provide the Department ninety days in advance of
contract a detailed schedule for completing inspections, tests, analyses, and acceptance criteria
(ITAAC), (8) provide the Department ninety day in advance of contract a detailed system level
construction schedule, and (9) provide the Department ninety days in advance of contract a detailed
up-to-date plan of financing for the project.
In Section 950.23 the Department has set a claims process allowing the sponsor to make a claim
upon the Department for the payment of its covered costs under the standby support contract. The
sponsor must first file claims report detailing information substantiating the duration of the covered
delay, the cost associated with the delay, and the amount of payment for principal or interest during
the covered delay.
2. Indicate how, by whom, and for what purpose the information is to be used.
As noted above, the Department will not use the conditional agreement documentation to select
among potential sponsors. Rather, the actual awarding of a Standby Support Contract is based on
fulfillment of the requirements and conditions in the Conditional Agreement, including the
Commission’s issuing of a combined license and the sponsor’s commencement of construction
(i.e., the pouring of safety-related concrete for the reactor building). All documentation will allow
the Department’s representative, the Program Administrator, to enter into a Conditional Agreement
and to monitor the progress of various competing sponsors, prior to entering into Standby Support
Contracts, enter in to a contract with the Department and allow the sponsor to submit claims for
reimbursement of authorized costs. This relatively modest information requirement is in lieu of an
application process.
3. Describe whether, and to what extent, the collection of information involves the use of
automated, electronic, mechanical, or other technological collection techniques or other
forms of information technology.
The first three items required to enter into a conditional agreement with the Department exist in the
sponsors electronically submitted combined license submission to the Nuclear Regulatory
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Commission. All remaining information requested can be submitted electronically and should
reduce the sponsors' information collection burden.
4. Describe efforts to identify duplication.
The majority of the information requested for a conditional agreement and standby support contract
is identical to the Nuclear Regulatory Commission’s application information when sponsor
requests a combined license as set forth in 10 CFR, Part 52. Therefore, no duplication exists.
Interested companies will submit a copy of the docketed NRC application with the NRC approval
letter to DOE. Typically, these NRC-approved applications are several volumes (1000 pages or
more) and DOE is requesting that each company extract from the Combined construction and
Operating License (COL) their financial information and their construction schedule.
5. If the collection of information impacts small businesses or other small entities, describe
any methods used to minimize burden.
The impact of the collection of information to small businesses is unlikely; however, it was
considered in the development of the requirements and documents and is minimized to the extent
permitted by applicable statutory requirements and other legal and management constraints.
6. Describe the consequence to Federal program or policy activities if the collection is not
conducted or is conducted less frequently, as well as any technical or legal obstacles to
reducing burden.
The Secretary of Energy is authorized to sign up to six Standby Support Contracts which will
indemnify up to $2 billion sponsors of advanced nuclear power facilitates of certain delays
attributed to the regulatory process or litigation. There is a requirement of one submission a year
which represents the minimum frequency necessary to allow for the granting of the Conditional
Agreements.
7. Explain any special circumstances that require the collection to be conducted in a manner
inconsistent with OMB guidelines.
None
8. If applicable, provide a copy and identify the date and page number of publication in the
Federal Register of the agency’s notice, required by 5 CFR 320.8(d), soliciting comments
on the information collection prior to submission to OMB. Summarize public comments
received in response to that notice and describe actions taken in response to the
comments. Specifically address comments received on cost and hour burden. Describe
efforts to consult with persons outside DOE.
No comments were received on the 60-day FRN (FR 71 Vol. 141 Page 41788)
9. Explain any decision to provide any payment or gift to respondents, other than
remuneration of contractors or grantees.
None
10. Describe any assurance of confidentiality provided to respondents and the basis for the
assurance in statute, regulation, or agency policy.
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Where sensitive and/or confidential information is involved in an information collection, the
provisions for dealing with this confidential information are set forth in the Department’s interim
final rule.
11. Provide additional justification for any questions of a sensitive nature, such as sexual
behavior and attitudes, religious beliefs, and other matters that are commonly considered
private.
There are no collections in this package which involve such questions of a sensitive, personal, or
private nature.
12. Provide estimates of the hour burden of the collection of information. The statement
should indicate the number of respondents, frequency of response, annual hour burden,
and an explanation of how the burden was estimated.
The estimated burden hours are the sum of the burden reported by Departmental elements and field
organizations as compiled from their respective contractors or estimated by expert personnel
familiar with these collections. It is estimated that there will be 5 respondents annually and each
respondent requires approximately 44 hours responding for a total burden of 220 hours. That
estimate includes the time required by companies to submit a copy of the docketed NRC
application with the NRC approval letter to DOE and also includes the time for companies to
extract from the Combined construction and Operating License (COL) their financial information
and their construction schedule for submission to DOE. Typically, these NRC-approved
applications are several volumes (1000 pages or more) or submission to DOE.

13. Provide an estimate for the total annual cost burden to respondents or recordkeepers
resulting from the collection of information.
We believe that the sponsors of new advanced nuclear power facilities responding to information
request for standby support coverage would be comparable to ($250.00 an hour). We determined
that this figure is consistent to what the Department is currently paying a financial services
company to assess the cost of providing federal risk insurance. The Department will provide an
estimated cost of risk insurance but request that sponsors provide their own estimate when
requesting a conditional agreement with the Department. The base for estimating the annualized
cost to the sponsor and added in a percentage for fringe benefits, overhead and fee (a loaded figure
of approximately $250.00 an hour). Therefore, the total estimated annual cost burden for these
collections is $55,000.
14. Provide estimates of annualized cost to the Federal government.
The estimated annualized cost to the Department for the data in this ICR is based on an assumed
standard cost of $42.00 per burden hour. This standard cost is based on the General Services
Administration (GSA) formula in determination of Government paperwork and report costs, and is
based on an estimate of $42.00 per hour labor cost (GS-13), an additional 25-30% for employee fringe
benefits and an additional 30% overhead cost. Using these standard costs, which have been rounded to
the nearest dollar, the annualized cost of this package is:

Government cost, at $67.00/burden hour for 250 hours of work equals $16,750
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15. Explain the reasons for any program changes or adjustments reported in Items 13 (or 14)
of OMB Form 83-I.
This is a new collection of information.
16. For collections whose results will be published, outline the plans for tabulation and
publication.
None
17. If seeking approval to not display the expiration date for OMB approval of the
information collection, explain the reasons why display would be inappropriate.
DOE is not seeking approval to not display the OMB information collection request expiration date
on the information collection if it is approved.
18. Explain each exception to the certification statement identified in Item 19 of OMB Form
83-I.
None

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