**Draft User Fee Scenarios**

The following two scenarios implement potential user fee structures over
5 years, from 2008 to 2012. Scenario 1 shows the results of our meetings
on 1/8/07 and 1/13/07. Since Scenario 1 does not have 100 percent cost
recovery, Scenario 2 is presented as a potential alternative.

[Assumptions for both Scenario 1 and Scenario 2:]{.underline}

1.  Future shipments are assumed to have the same category distributions
    as FY05 shipments.

2.  Shipments will continue at the non-designated ports, regardless of
    the increased fee.

3.  Non-commercial shipments to designated ports would be exempt from
    the base fee. These non-commercial shipments would still be subject
    to any premium fees.

4.  Future increases in the number of shipments and respective program
    costs are not modeled in Scenario 1 or 2. If projected growth
    estimates are provided by Law Enforcement, the program costs and
    fees can be estimated.

5.  In addition to the non-staffed non-designated port base fee, all
    shipments to these types of ports would also be subject to any
    associated per diem and travel costs.

6.  Premium fees are implemented gradually over 5 years, increasing 20
    percent annually.

7.  User fees are inflated using indices from the *Economic Report of
    the President 2006*, which projects the growth of real GDP
    through 2011. Since the 2012 inflation index was not provided, it
    was extrapolated from the report. Once the 2007 report is published,
    the actual 2012 inflation index will be used.
    *source:*http://a257.g.akamaitech.net/7/257/2422/13feb20061330/www.gpoaccess.gov/eop/2006/2006_erp.pdf

8.  For each scenario, fees are presented (1) without rounding and (2)
    with rounding.

**[Scenario 1:]{.underline}**

1.  *Base Fees & Premium Fees:* Scenario 1 uses the 2005 estimates that
    were previously discussed at the 1/8/07 meeting. The 2005 fee
    estimates are *not* inflated to 2008 dollars for the first year of
    the new user fees. Instead, the 2005 fee is used in year 2008. All
    fees (base fees and premium fees) increase from year 2008 to 2012 to
    account for inflation. The 2005 fees from the 1/8/07 meeting are:

    -   Designated Port Base Fee: \$80

    -   Staffed Non-Designated Port Base Fee - \$125

    -   Non-Staffed Non-Designated Port Base Fee - \$125 plus per diem
        and travel charges

    -   Protected Species Premium Fee - \$80

    -   Live Species Premium Fee - \$80

2.  *FY Costs:* FY costs are the program costs for FY05, inflated each
    year from 2005 to 2012 to represent the real cost of the program.

3.  *Difference from FY Costs:* Under Scenario 1, the program costs are
    never fully recovered under the new user fees. This results from the
    2005 fee estimates not being inflated to 2008 dollars for the first
    year of the new user fees.

**Table 1. Scenario 1 -- User Fees Without Rounding**

  ------------------------- -------------- -------------- -------------- -------------- --------------
  ** **                     **2008**       **2009**       **2010**       **2011**       **2012**

  ***Base Fee***            * *            * *            * *            * *             

  Designated Port Fee       \$80           \$82           \$83           \$85           \$87

  Staffed Non-Designated    \$125          \$128          \$130          \$133          \$136
  Port Fee                                                                              

  Non-Staffed               \$125          \$128          \$130          \$133          \$136
  Non-Designated Port Fee                                                               

                                                                                         

  ***Premium Fees***        * *            * *            * *                            

  Protected Species         \$17           \$35           \$52           \$70           \$87

  Live Species              \$17           \$35           \$52           \$70           \$87

                                                                                         

  ***Total Fee Revenue (not \$14,968,143   \$16,734,926   \$18,507,656   \$20,300,514   \$22,100,175
  incl. overtime)***                                                                    

  FY Costs                  \$21,417,545   \$21,867,313   \$22,326,527   \$22,817,710   \$23,319,700

  Difference from FY Costs  -\$6,449,402   -\$5,132,387   -\$3,818,871   -\$2,517,197   -\$1,219,525

  Percentage Difference     -30.1%         -23.5%         -17.1%         -11.0%         -5.2%
  ------------------------- -------------- -------------- -------------- -------------- --------------

**Table 2. Scenario 1 -- User** Fees With Rounding

  ------------------------- -------------- -------------- -------------- -------------- --------------
  ** **                     **2008**       **2009**       **2010**       **2011**       **2012**

  ***Base Fee***            * *            * *            * *            * *             

  Designated Port Fee       \$80           \$80           \$85           \$85           \$90

  Staffed Non-Designated    \$125          \$130          \$130          \$135          \$140
  Port Fee                                                                              

  Non-Staffed               \$125          \$130          \$130          \$135          \$140
  Non-Designated Port Fee                                                               

                                                                                         

  ***Premium Fees***        * *            * *            * *                            

  Protected Species         \$20           \$35           \$55           \$70           \$90

  Live Species              \$20           \$35           \$55           \$70           \$90

                                                                                         

  ***Total Fee Revenue (not \$15,187,775   \$16,531,766   \$18,966,220   \$20,296,756   \$22,824,680
  incl. overtime)***                                                                    

  FY Costs                  \$21,417,545   \$21,867,313   \$22,326,527   \$22,817,710   \$23,319,700

  Difference from FY Costs  -\$6,229,770   -\$5,335,547   -\$3,360,307   -\$2,520,954   -\$495,020

  Percentage Difference     -29.1%         -24.4%         -15.1%         -11.0%         -2.1%
  ------------------------- -------------- -------------- -------------- -------------- --------------

**[Scenario 2:]{.underline}**

1.  *Base Fees & Premium Fees:* Scenario 2 uses the 2005 estimates that
    were previously discussed at the 1/8/07 meeting. Unlike Scenario 1,
    the 2005 fee estimates *are* inflated to 2008 dollars for the first
    year of the new user fees. All fees (base fees and premium fees)
    continue to increase from year 2008 to 2012 to account for
    inflation.

2.  *FY Costs:* FY costs are the program costs for FY05, inflated each
    year from 2005 to 2012 to represent the real cost of the program.

3.  *Difference from FY Costs:* Under Scenario 2, the program costs
    *are* fully recovered under the new user fees in year 2012.

**Table 3. Scenario 2 -- User** Fees Without Rounding

  ------------------------- -------------- -------------- -------------- -------------- --------------
  ** **                     **2008**       **2009**       **2010**       **2011**       **2012**

  ***Base Fee***            * *            * *            * *            * *             

  Designated Port Fee       \$85           \$87           \$89           \$91           \$93

  Staffed Non-Designated    \$133          \$136          \$139          \$142          \$145
  Port Fee                                                                              

  Non-Staffed               \$133          \$136          \$139          \$142          \$145
  Non-Designated Port Fee                                                               

                                                                                         

  ***Premium Fees***        * *            * *            * *                            

  Protected Species         \$19           \$37           \$56           \$74           \$93

  Live Species              \$19           \$37           \$56           \$74           \$93

                                                                                         

  ***Total Fee Revenue (not \$15,914,332   \$17,850,163   \$19,742,501   \$21,656,304   \$23,577,363
  incl. overtime)***                                                                    

  FY Costs                  \$21,417,545   \$21,867,313   \$22,326,527   \$22,817,710   \$23,319,700

  Difference from FY Costs  -\$5,503,212   -\$4,017,150   -\$2,584,026   -\$1,161,406   +\$257,663

  Percentage Difference     -25.7%         -18.4%         -11.6%         -5.1%          +1.1%
  ------------------------- -------------- -------------- -------------- -------------- --------------

**Table 4. Scenario 2 -- User** Fees With Rounding

  ------------------------- -------------- -------------- -------------- -------------- --------------
  ** **                     **2008**       **2009**       **2010**       **2011**       **2012**

  ***Base Fee***            * *            * *            * *            * *             

  Designated Port Fee       \$85           \$85           \$90           \$90           \$95

  Staffed Non-Designated    \$135          \$135          \$140          \$140          \$145
  Port Fee                                                                              

  Non-Staffed               \$135          \$135          \$140          \$140          \$145
  Non-Designated Port Fee                                                               

                                                                                         

  ***Premium Fees***        * *            * *            * *                            

  Protected Species         \$20           \$40           \$60           \$75           \$95

  Live Species              \$20           \$40           \$60           \$75           \$95

                                                                                         

  ***Total Fee Revenue (not \$16,065,565   \$17,768,805   \$20,269,820   \$21,547,250   \$24,050,525
  incl. overtime)***                                                                    

  FY Costs                  \$21,417,545   \$21,867,313   \$22,326,527   \$22,817,710   \$23,319,700

  Difference from FY Costs  -\$5,351,980   -\$4,098,508   -\$2,056,707   -\$1,270,460   +\$730,825

  Percentage Difference     -25.0%         -18.7%         -9.2%          -5.6%          +3.1%
  ------------------------- -------------- -------------- -------------- -------------- --------------