[Federal Register Volume 61, Number 20 (Tuesday, January 30, 1996)]
[Proposed Rules]
[Pages 2948-2968]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1524]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 /
Proposed Rules
[[Page 2948]]
NUCLEAR REGULATORY COMMISSION
10 CFR Parts 170 and 171
RIN 3150-AF39
Revision of Fee Schedules; 100% Fee Recovery, FY 1996
AGENCY: Nuclear Regulatory Commission.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Nuclear Regulatory Commission (NRC) is proposing to amend
the licensing, inspection, and annual fees charged to its applicants
and licensees. The proposed amendments are necessary to implement the
Omnibus Budget Reconciliation Act of 1990 (OBRA-90), which mandates
that the NRC recover approximately 100 percent of its budget authority
in Fiscal Year (FY) 1996 less amounts appropriated from the Nuclear
Waste Fund (NWF). The amount to be recovered for FY 1996 is
approximately $462.3 million.
DATES: The comment period expires February 29, 1996. Comments received
after this date will be considered if it is practical to do so, but the
NRC is able to ensure only that comments received on or before this
date will be considered. Because OBRA-90 requires that NRC collect the
FY 1996 fees by September 30, 1996, requests for extensions of the
comment period will not be granted.
ADDRESSES: Mail written comments to: Secretary, U.S. Nuclear Regulatory
Commission, Washington, DC 20555-0001, ATTN: Docketing and Service
Branch. Hand deliver comments to: 11555 Rockville Pike, Rockville,
Maryland 20852, between 7:30 am and 4:15 pm Federal workdays.
(Telephone 301-415-1678). Copies of comments received may be examined
at the NRC Public Document Room at 2120 L Street NW. (Lower Level),
Washington, DC 20555-0001. For information on submitting comments
electronically, see the discussion under Electronic Access in the
Supplementary Information Section.
The agency workpapers that support these proposed changes to 10 CFR
parts 170 and 171 may be examined at the NRC Public Document Room at
2120 L Street NW. (Lower Level), Washington, DC 20555-0001.
FOR FURTHER INFORMATION CONTACT: C. James Holloway, Jr., Office of the
Controller, U.S. Nuclear Regulatory Commission, Washington, DC 20555-
0001, Telephone 301-415-6213.
SUPPLEMENTARY INFORMATION:
I. Background.
II. Proposed Action.
III. Section-by-Section Analysis.
IV. Electronic Access.
V. Environmental Impact: Categorical Exclusion.
VI. Paperwork Reduction Act Statement.
VII. Regulatory Analysis.
VIII. Regulatory Flexibility Analysis.
IX. Backfit Analysis.
I. Background
Pub. L. 101-508, the Omnibus Budget Reconciliation Act of 1990
(OBRA-90), enacted November 5, 1990, requires that the NRC recover
approximately 100 percent of its budget authority, less the amount
appropriated from the Department of Energy (DOE) administered NWF, for
FYs 1991 through 1995 by assessing fees. OBRA-90 was amended in 1993 to
extend the NRC's 100 percent fee recovery requirement through FY 1998.
The NRC assesses two types of fees to recover its budget authority.
First, license and inspection fees, established in 10 CFR part 170
under the authority of the Independent Offices Appropriation Act
(IOAA), 31 U.S.C. 9701, recover the NRC's costs of providing
individually identifiable services to specific applicants and
licensees. Examples of the services provided by the NRC for which these
fees are assessed are the review of applications for the issuance of
new licenses, approvals or renewals, and amendments to licenses or
approvals. Second, annual fees, established in 10 CFR part 171 under
the authority of OBRA-90, recover generic and other regulatory costs
not recovered through 10 CFR part 170 fees.
On June 20, 1995 (60 FR 32218), the NRC published its final rule
establishing the licensing, inspection, and annual fees necessary for
the NRC to recover approximately 100 percent of its budget authority
for FY 1995, less the appropriation received from the Nuclear Waste
Fund.
The NRC stated in the FY 1995 final rule that in an effort to
stabilize annual fees, beginning in FY 1996 the NRC would adjust the
annual fees by the percentage change (plus or minus) in NRC's total
budget authority unless there was a substantial change in the total NRC
budget authority or the magnitude of the budget allocated to a specific
class of licensees, in which case the annual fee base would be
recalculated (60 FR 32225, June 20, 1995). The NRC also stated that the
percentage change would be adjusted based on changes in the 10 CFR part
170 fees and other receipts as well as on the number of licensees
paying fees.
II. Proposed Action
The NRC is proposing to amend its licensing, inspection, and annual
fees to recover approximately 100 percent of its FY 1996 budget
authority, including the budget authority for its Office of the
Inspector General, less the appropriations received from the NWF. For
FY 1996, the NRC's budget authority is $473.3 million, of which
approximately $11.0 million has been appropriated from the NWF.
Therefore, OBRA-90 requires that the NRC collect approximately $462.3
million in FY 1996 through 10 CFR part 170 licensing and inspection
fees and 10 CFR part 171 annual fees. This amount to be recovered for
FY 1996 is about $41.3 million less than the total amount to be
recovered for FY 1995 and $50.7 million less when compared to the
amount to be recovered for FY 1994. The NRC estimates that
approximately $120.3 million will be recovered in FY 1996 from fees
assessed under 10 CFR part 170 and other offsetting receipts. The
remaining $342 million will be recovered through the 10 CFR part 171
annual fees established for FY 1996.
As a result of the reduced amount to be recovered for FY 1996 and
the proposed changes outlined in this section, the FY 1996 annual fees
for all licensees have been reduced by about 6 percent compared to the
annual fees assessed for FY 1995. The following examples illustrate
changes in annual fees.
[[Page 2949]]
------------------------------------------------------------------------
FY 1995 annual FY 1996 annual
fee fee
------------------------------------------------------------------------
Class of licensees:
Power Reactors........................ $2,936,000 $2,747,000
Nonpower Reactors..................... 56,500 52,900
High Enriched Uranium Fuel Facility... 2,569,000 2,404,000
Low Enriched Uranium Fuel Facility.... 1,261,000 1,180,000
UF6 Conversion Facility............... 639,200 598,100
Uranium Mills......................... 60,900 57,000
Typical materials licensees:
Radiographers......................... 13,900 13,000
Well Loggers.......................... 8,100 7,500
Gauge Users........................... 1,700 1,600
Broad Scope Medical................... 23,200 21,700
------------------------------------------------------------------------
The NRC is also proposing to continue its streamlining of the fee
structure and process for materials licenses which began in FY 1995 and
make other changes as discussed in Sections A and B. Among the changes
would be a change in the billing date for the annual fees imposed on
many materials licensees.
As in FYs 1991-1995, the fees will become effective 30 days after
publication of the final rule in the Federal Register. The NRC would
send a bill for the amount of the annual fee upon publication of the FY
1996 final rule to the licensee or certificate, registration or
approval holder not subject to quarterly billing (those licensees who
pay annual fees of less than $100,000) and whose anniversary date (the
first day of the month in which the original license was issued) is
before the effective date of the final FY 1996 rule. For these
licensees, payment would be due on the effective date of the FY 1996
rule. Those materials licensees whose license anniversary date during
FY 1996 falls after the effective date of the final FY 1996 rule would
be billed during the anniversary month of the license and payment would
be due 30 days after the initial invoice is issued.
If the NRC decides not to pursue some or all of these changes,
based on the public comments, the respective current fee policies would
continue in effect for FY 1996. Comments are also requested on whether
the NRC should continue current fee policies in lieu of the changes in
this proposed rule.
A. Amendments to 10 CFR Part 170: Fees for Facilities, Materials,
Import and Export Licenses, and Other Regulatory Services
The NRC proposes four amendments to 10 CFR part 170. First, the NRC
proposes that the two professional hourly rates established in FY 1995
in Sec. 170.20 be revised based on the FY 1996 budget. These proposed
rates would be based on the FY 1996 direct FTEs and that portion of the
FY 1996 budget that either does not constitute direct program support
(contractual services costs) or is not recovered through the
appropriation from the NWF. These rates are used to determine the part
170 fees. The NRC is proposing to establish a rate of $128 per hour
($223,314 per direct FTE) for the reactor program. This rate is
applicable to all activities whose fees are based on full cost under
Sec. 170.21 of the fee regulations. A second rate of $120 per hour
($209,057 per direct FTE) is proposed for the nuclear materials and
nuclear waste program. This rate is applicable to all materials
activities whose fees are based on full cost under Sec. 170.31 of the
fee regulations.
The two rates continue to be based on cost center concepts adopted
in FY 1995 (60 FR 32225, June 20, 1995) and used for NRC budgeting
purposes. In implementing cost center concepts, all budgeted resources
are assigned to cost centers to the extent they can be separately
distinguished. These costs include all salaries and benefits, contract
support, and travel that support each cost center activity.
Second, the NRC proposes that the current part 170 licensing and
inspection fees in Secs. 170.21 and 170.31 for applicants and licensees
be adjusted to reflect the changes in the revised hourly rates.
Third, to continue FY 1995 initiatives for streamlining its fee
program and improving the predictability of fees, the NRC is proposing
to eliminate certain materials ``flat'' renewal fees in Sec. 170.31 and
to amend Sec. 170.12 accordingly. This proposed action is also
consistent with NRC's recent Business Process Reengineering initiative
to extend the duration of certain materials licenses. The NRC published
a proposed rule in the Federal Register for comment on September 8,
1995 (60 FR 46784) explaining this initiative. In the September 8,
1995, proposed rule, certain materials licenses would be extended for
five years beyond their expiration date. Additionally, comments were
requested on the general topic of the appropriate duration of licenses.
A final rule was published in the Federal Register on January 16, 1996
(61 FR 1109).
The proposed elimination of 10 CFR part 170 materials ``flat''
renewal fees continues to recognize that the NRC's ``regulatory
service'' provided to licensees, as referred to in OBRA-90, is
comprised of the total regulatory activities that the NRC determines
are needed to regulate a class of licensees. These regulatory
activities include not only renewals but also inspections, research,
rulemaking, orders, enforcement actions, responses to allegations,
incident investigations, and other activities necessary to regulate
classes of licensees. This proposed action does not result in any net
fee increases for affected licensees and would provide those licensees
with greater fee predictability, a frequent licensee request in
comments on past fee rules. The materials annual fees, which include
the cost for any renewals, would become effective for FY 1996.
Materials licensees who paid a ``flat'' 10 CFR part 170 renewal fee for
renewal applications filed in FY 1996 would receive a refund for those
payments, as appropriate.
Fourth, the language in Sec. 170.31, Category 15, relating to
export and import licenses, would be amended to clarify that export and
import of materials includes the export and import of radioactive
waste. The NRC amended 10 CFR part 110 effective August 21, 1995 (60 FR
37556, July 21, 1995), to require specific licenses for the export or
import of radioactive waste.
In summary, the NRC is proposing to (1) Revise the two 10 CFR part
170 hourly rates; (2) revise the licensing fees assessed under 10 CFR
part 170 to reflect the cost to the agency of providing the service;
(3) eliminate the materials ``flat'' renewal fees in Sec. 170.31 and
amend Sec. 170.12 accordingly; and (4) amend Category 15 in Sec. 170.31
to make
[[Page 2950]]
clear that fees would be assessed for licenses authorizing the export
or import of radioactive waste.
B. Amendments to 10 CFR Part 171: Annual Fees for Reactor Operating
Licenses, and Fuel Cycle Licenses and Materials Licenses, Including
Holders of Certificates of Compliance, Registrations, and Quality
Assurance Program Approvals and Government Agencies Licensed by NRC
The NRC proposes three amendments to 10 CFR part 171. First, the
NRC proposes to amend Secs. 171.15 and 171.16 to revise the annual fees
for FY 1996 to recover approximately 100 percent of the FY 1996 budget
authority, less fees collected under 10 CFR part 170 and funds
appropriated from the NWF.
In the FY 1995 final rule, the NRC stated that it would stabilize
annual fees as follows. Beginning in FY 1996, the NRC would adjust the
annual fees only by the percentage change (plus or minus) in NRC's
total budget authority unless there was a substantial change in the
total NRC budget authority or the magnitude of the budget allocated to
a specific class of licensees. If either case occurred, the annual fee
base would be recalculated (60 FR 32225, June 20, 1995). The NRC also
indicated that the percentage change would be adjusted based on changes
in the 10 CFR part 170 fees and other receipts as well as on the number
of licensees paying the fees. The NRC does not believe the changes to
the FY 1996 budget compared to the FY 1995 budget warrant establishing
new baseline fees for FY 1996. Therefore, the NRC is proposing that the
FY 1996 annual fees for all licensees be reduced by 6.4 percent. The
6.4 percent reduction is based on the changes in the budget to be
recovered from fees, the amount of the budget recovered for 10 CFR part
170 fees and other offsetting receipts, and changes in the number of
licensees paying annual fees. Table I shows the total budget and fee
amounts for FY 1995 and FY 1996.
Table I.--Calculation of the Percentage Change to the FY 1995 Annual
Fees
[Dollars in millions]
------------------------------------------------------------------------
FY95 FY96
------------------------------------------------------------------------
Total budget........................................ $525.6 $473.3
Less NWF.......................................... -22.0 -11.0
-------------------
Total fee base................................ 503.6 462.3
Less part 170 fees and other receipts............... 141.1 120.3
-------------------
Total annual fee amount....................... 362.5 342.0
------------------------------------------------------------------------
As shown in Table I, the total amount to be recovered from annual
fees in FY 1996 is $20.5M ($342.0-$362.5) or 5.7 percent less than the
amount that was to be recovered from annual fees in FY 1995. This
difference is the net change resulting from a reduction in the budget
and a reduction in the expected collection from 10 CFR part 170 fees
and other offsetting receipts. The NRC notes that the reduction in 10
CFR part 170 fees for FY 1996 results primarily from the fact that NRC
had a one-time collection of five quarters of 10 CFR part 170 fees in
FY 1995 as a result of changes in our billing practices which permits
us to bill for services shortly after they are rendered.
In addition to changes in the budget and 10 CFR part 170 fees and
other receipts, the number of licensees to pay fees in FY 1996 changed
compared to FY 1995. Also, the amount of the small entity surcharge
(difference between annual fee and small entity fee) decreased as the
annual fees decreased. The changes in the number of licensees in the
various classes plus the reduction in the small entity surcharge result
in an additional decrease in the annual fee per licensee of 0.7
percent. Thus the total change in the annual fees for FY 1996 compared
to FY 1995 is a decrease of 6.4 percent (5.7 percent plus 0.7 percent).
Second, Footnote 1 of 10 CFR 171.16(d) would be amended to provide
for a waiver of annual fees for FY 1996 for those materials licensees,
and holders of certificates, registrations, and approvals who either
filed for termination of their licenses or approvals or filed for
possession only/storage licenses before October 1, 1995, and
permanently ceased licensed activities entirely by September 30, 1995.
All other licensees and approval holders who held a license or approval
on October 1, 1995, are subject to FY 1996 annual fees. This change is
being made in recognition of the fact that since the final FY 1995 rule
was published in June 1995, some licensees have filed requests for
termination of their licenses or certificates with the NRC. Other
licensees have either called or written to the NRC since the FY 1995
final rule became effective requesting further clarification and
information concerning the annual fees assessed. The NRC is responding
to these requests as quickly as possible. However, the NRC was unable
to respond and take action on all such requests before the end of the
fiscal year on September 30, 1995. Similar situations existed after the
FY 1991-1994 rules were published, and in those cases, the NRC provided
an exemption from the requirement that the annual fee is waived only
when a license is terminated before October 1 of each fiscal year.
Third, beginning in FY 1996, the NRC proposes to assess
Sec. 171.16(d) annual fees, for those materials licenses whose annual
fees are less than $100,000, based on the anniversary of the date the
license was originally issued. Accordingly, a new section would be
added to Sec. 171.19. For example, if the original license was issued
on June 17, then the anniversary date of that materials license, for
annual fee purposes, would be June 1 and the licensee would be billed
in June of each year for the annual fees in effect on the anniversary
date (the first day of the month that the original license was issued)
of the license. For FY 1996, those affected materials licenses with a
license anniversary date between October 1, 1995, and the effective
date of the final FY 1996 fee rule would be billed upon publication of
the final rule in the Federal Register and annually thereafter during
the anniversary month of the license. Those affected materials licenses
whose license anniversary date is on or after the effective date of the
final FY 1996 fee rule would be billed during the anniversary month of
the license and annually thereafter based on the annual fee in effect
at the time of billing. The specific license categories of materials
licensees affected by this proposed change are listed in Sec. 171.19(d)
of this proposed rule.
Billing certain materials licensees on the anniversary date of the
license would allow the NRC to make the billing process more efficient
by distributing the billing and collection of annual fee invoices over
the entire year. The current practice is to bill over 6,000 materials
licenses simultaneously during the fiscal year. Section 171.19 would
also be amended to credit quarterly partial annual fee payments for FY
1996 already made by certain licensees in FY 1996 either toward their
total annual fee to be assessed, or to make refunds, if necessary.
Materials licensees who paid a ``flat'' 10 CFR part 170 renewal fee for
renewal applications filed in FY 1996 would receive a refund for those
payments, as appropriate.
The proposed amendments to 10 CFR part 171 do not change the
underlying basis for 10 CFR part 171; that is, charging a class of
licensees for NRC costs attributable to that class of licensees. The
proposed changes are consistent with the NRC's FY 1995 final rule
indicating that, for the period FY 1996-1999, the annual fees would be
adjusted by the percentage change (plus or minus) to the NRC's budget
authority adjusted for NRC offsetting receipts and
[[Page 2951]]
the number of licensees paying annual fees.
III. Section-by-Section Analysis
The following analysis of those sections that would be amended by
this proposed rule provides additional explanatory information. All
references are to Title 10, Chapter I, U.S. Code of Federal
Regulations.
Part 170
Section 170.12 Payment of fees
This section would be amended to conform to the streamlining
changes being proposed by the NRC. Section 170.12(a), which describes
application fees, would be amended to recognize that the NRC would not
issue a new license or amendment prior to receipt of the prescribed
fee. Section 170.12(d), which describes renewal fees, would be amended
to recognize that materials ``flat'' renewal fees would be eliminated.
Section 170.12(g), which discusses inspection fees, would be amended to
recognize that materials ``flat'' inspection fees were eliminated in
the FY 1995 final rule (60 FR 32218, June 20, 1995).
Section 170.20 Average cost per professional staff hour
This section would be amended to establish two professional staff-
hour rates based on FY 1996 budgeted costs--one for the reactor program
and one for the nuclear material and nuclear waste program.
Accordingly, the NRC reactor direct staff-hour rate for FY 1996 for all
activities whose fees are based on full cost under Sec. 170.21 would be
$128 per hour, or $223,314 per direct FTE. The NRC nuclear material and
nuclear waste direct staff-hour rate for all materials activities whose
fees are based on full cost under Sec. 170.31 would be $120 per hour,
or $209,057 per direct FTE. The rates are based on the FY 1996 direct
FTEs and NRC budgeted costs that are not recovered through the
appropriation from the NWF. The NRC has continued the use of cost
center concepts established in FY 1995 in allocating certain costs to
the reactor and materials programs in order to more closely align
budgeted costs with specific classes of licensees. The method used to
determine the two professional hourly rates is as follows:
1. Direct program FTE levels are identified for both the reactor
program and the nuclear material and waste program.
2. Direct contract support, which is the use of contract or other
services in support of the line organization's direct program, is
excluded from the calculation of the hourly rate because the costs for
direct contract support are charged directly through the various
categories of fees.
3. All other direct program costs (i.e., Salaries and Benefits,
Travel) represent ``in-house'' costs and are to be allocated by
dividing them uniformly by the total number of direct FTEs for the
program. In addition, salaries and benefits plus contracts for general
and administrative support are allocated to each program based on that
program's salaries and benefits. This method results in the following
costs, to be included in the hourly rates.
Table II.--FY 1996 Budget Authority To Be Included in Hourly Rates
[Dollars in millions]
------------------------------------------------------------------------
Reactor Materials
program program
------------------------------------------------------------------------
Salary and benefits:
Program................................. $149.6 $46.3
Allocated agency management and support. 40.9 12.7
---------------------------
Subtotal.............................. 190.5 59.0
General and administrative support (G&A):
Program travel and other support........ 11.7 3.2
Allocated agency management and support. 69.5 21.5
---------------------------
Subtotal.............................. 81.2 24.7
Less offsetting receipts.................... .1 ............
---------------------------
Total budget included in hourly rate.. 271.6 83.7
Program direct FTEs......................... 1,216.2 400.5
Rate per direct FTE......................... 223,314 209,057
Professional hourly rate.................... 128 120
------------------------------------------------------------------------
Dividing the $271.6 million budget for the reactor program by the
number of reactor program direct FTEs (1216.2) results in a rate for
the reactor program of $223,314 per FTE for FY 1996. Dividing the $83.7
million budget for the nuclear materials and nuclear waste program by
the number of program direct FTEs (400.5) results in a rate of $209,057
per FTE for FY 1996. The Direct FTE Hourly Rate for the reactor program
is $128 per hour (rounded to the nearest whole dollar). This rate is
calculated by dividing the cost per direct FTE ($223,314) by the number
of productive hours in one year (1744 hours) as indicated in OMB
Circular A-76, ``Performance of Commercial Activities.'' The Direct FTE
Hourly Rate for the materials program is $120 per hour (rounded to the
nearest whole dollar). This rate is calculated by dividing the cost per
direct FTE ($209,057) by the number of productive hours in one year
(1744 hours). The method used to calculate the FY 1996 hourly rate is
the same as the method used in the FY 1995 rule. The FY 1996 rate is
slightly higher than the FY 1995 rate due in part to the increase is
the Federal pay raise given to all Federal employees in January 1995.
Section 170.21 Schedule of Fees for Production and Utilization
Facilities, Review of Standard Reference Design Approvals, Special
Projects, Inspections and Import and Export Licenses
The NRC is proposing to revise the licensing and inspection fees in
this section, which are based on full-cost recovery, to reflect FY 1996
budgeted costs and to recover costs incurred by the NRC in providing
licensing and inspection services to identifiable recipients. The fees
assessed for services provided under the schedule are based on the
professional hourly rate, as shown in Sec. 170.20, for the reactor
[[Page 2952]]
program and any direct program support (contractual services) costs
expended by the NRC. Any professional hours expended on or after the
effective date of the final rule will be assessed at the FY 1996 hourly
rate for the reactor program, as shown in Sec. 170.20. Although the
average amounts of time needed to review import and export licensing
applications have not changed, the fees in Sec. 170.21, facility
Category K, have increased from FY 1995 as a result of the increase in
the hourly rate.
For those applications currently on file and pending completion,
footnote 2 of Sec. 170.21 would be revised to provide that professional
hours expended up to the effective date of the final rule will be
assessed at the professional rates in effect at the time the service
was rendered. For topical report applications currently on file that
are still pending completion of the review, and for which review costs
have reached the applicable fee ceiling established by the July 2, 1990
rule, the costs incurred after any applicable ceiling was reached
through August 8, 1991, will not be billed to the applicant. Any
professional hours expended for the review of topical report
applications, amendments, revisions, or supplements to a topical report
on or after August 9, 1991, are assessed at the applicable rate
established by Sec. 170.20.
Section 170.31 Schedule of Fees for Materials Licenses and Other
Regulatory Services, Including Inspections and Import and Export
Licenses
The licensing and inspection fees in this section, which are based
on full-cost recovery, would be modified to recover the FY 1996 costs
incurred by the NRC in providing licensing and inspection services to
identifiable recipients. The fees assessed for services provided under
the schedule would be based on both the professional hourly rate as
shown in Sec. 170.20 for the materials program and any direct program
support (contractual services) costs expended by the NRC. Licensing
fees based on the average time to review an application (``flat'' fees)
would be adjusted to reflect the increase in the professional hourly
rate from $116 per hour in FY 1995 to $120 per hour in FY 1996. The
``flat'' renewal fees for certain materials licenses in Sec. 170.31
would be eliminated and combined with the materials annual fees in
Sec. 171.16(d).
The amounts of the licensing ``flat'' fees were rounded off so that
the amounts would be de minimis and the resulting flat fee would be
convenient to the user. Fees that are greater than $1,000 are rounded
to the nearest $100. Fees under $1,000 are rounded to the nearest $10.
Fee Category 15, covering the fees for export and import licenses,
would be amended to include clarifying language that export and import
of materials includes the export and import of radioactive waste. The
NRC amended 10 CFR part 110 on July 21, 1995 (60 FR 37556), to require
specific licenses for the export and import of radioactive waste. The
final rule became effective August 21, 1995.
The proposed licensing ``flat'' fees are applicable to fee
categories 1.C and 1.D; 2.B and 2.C; 3.A through 3.P; 4.B through 9.D,
10.B, 15.A through 15.E and 16. Applications filed on or after the
effective date of the final rule would be subject to the revised fees
in this proposed rule. Although the average amounts of time needed to
review licensing applications have not changed, the ``flat'' fees in
Sec. 170.31 have increased from FY 1995 as a result of the increase in
the hourly rate.
For those licensing, inspection, and review fees that are based on
full-cost recovery (cost for professional staff hours plus any
contractual services), the materials program hourly rate of $120, as
shown in Sec. 170.20, would apply to those professional staff hours
expended on or after the effective date of the final rule.
Part 171
Section 171.15 Annual Fee: Reactor Operating Licenses
The annual fees in this section would be revised as described
below. Paragraph (d) would be removed and reserved and paragraphs (a),
(b), (c), and (e) would be revised to comply with the requirement of
OBRA-90 that the NRC recover approximately 100 percent of its budget
for FY 1996.
Paragraph (b) would be revised in its entirety to establish the FY
1996 annual fee for operating power reactors and to change fiscal year
references from FY 1995 to FY 1996. The fees would be established by
reducing FY 1995 annual fees (prior to rounding) by 6.4 percent. The
activities comprising the base FY 1995 annual fee and the FY 1995
additional charge (surcharge) are listed in paragraphs (b) and (c) and
continue to be shown for convenience purposes. Paragraphs (c)(1) would
be revised in its entirety and (c)(2) would be removed and reserved.
With respect to Big Rock Point, a smaller, older reactor, the NRC
proposes to grant a partial exemption from the FY 1996 annual fees
similar to FY 1995 based on a request filed with the NRC in accordance
with Sec. 171.11.
Each operating power reactor, except Big Rock Point, would pay an
annual fee of $2,747,000 in FY 1996.
Paragraph (d) would be removed and reserved.
Paragraph (e) would be revised to show the amount of the FY 1996
annual fee for nonpower (test and research) reactors. In FY 1996, the
fee is 6.4 percent below the FY 1995 level. The Energy Policy Act of
1992 established an exemption for certain Federally-owned research
reactors that are used primarily for educational training and academic
research purposes, where the design of the reactor satisfies certain
technical specifications set forth in the legislation. Consistent with
this legislative requirement, the NRC granted an exemption from annual
fees for FY 1992 and FY 1993 to the Veterans Administration Medical
Center in Omaha, Nebraska, the U.S. Geological Survey for its reactor
in Denver, Colorado, and the Armed Forces Radiobiological Institute in
Bethesda, Maryland, for its research reactor. This exemption was
initially codified in the July 20, 1993 (58 FR 38695) final fee rule at
Sec. 171.11(a) and more recently in the March 17, 1994 (59 FR 12543)
final rule at Sec. 171.11(a)(2). The NRC amended Sec. 171.11(a)(2) on
July 20, 1994 (59 FR 36895) to exempt from annual fees the research
reactor owned by the Rhode Island Atomic Energy Commission. The NRC
will continue to grant exemptions from the annual fee to Federally-
owned and State-owned research and test reactors that meet the
exemption criteria specified in Sec. 171.11.
Section 171.16 Annual fees: Materials Licensees, Holders of
Certificates of Compliance, Holders of Sealed Source and Device
Registrations, Holders of Quality Assurance Program Approvals, and
Government agencies licensed by the NRC
Section 171.16(c) covers the fees assessed for those licensees that
can qualify as small entities under NRC size standards. The NRC will
continue to assess two fees for licensees that qualify as small
entities under the NRC's size standards. In general, licensees with
gross annual receipts of $350,000 to $5 million pay a maximum fee of
$1,800. A second or lower-tier small entity fee of $400 is in place for
small entities with gross annual receipts of less than $350,000 and
small governmental jurisdictions with a population of less than 20,000.
No change in the amount of the small entity fees is being proposed
because the small entity fees are not based on the budget but are
established at a level to reduce the impact of fees on small entities.
The
[[Page 2953]]
small entity fees are shown in the proposed rule for convenience.
Section 171.16(d) would be revised to establish the FY 1996 annual
fees for materials licensees, including Government agencies, licensed
by the NRC. These fees were determined by reducing the FY 1995 annual
fees (prior to rounding) by 6.4 percent.
For the first time, the NRC is proposing to combine the ``flat''
material renewal fees in 10 CFR part 170 with the annual fees in 10 CFR
part 171. As described in the Federal Register on September 8, 1995 (60
FR 46784), recent NRC internal reviews and regulatory impact surveys of
material licensees have highlighted areas in which the current
materials licensing process can be improved. The NRC has completed the
preliminary phases of its Business Process Reengineering (BPR)
initiative to redesign the process of licensing medical, academic, and
industrial users of byproduct materials as well as with regard to some
small scope users of source and special nuclear materials. The NRC has
extended, by rulemaking, certain specific material licenses by five
years from the current expiration dates of those licenses. Resources
that would have otherwise been used to renew these licenses would be
devoted to the BPR project. The NRC is also examining whether to
permanently change the license duration for materials licenses. The NRC
estimates that approximately 80 percent of its approximately 6,500
materials licenses would be extended by the final rulemaking.
Consistent with this change in license renewals, the NRC is proposing,
for fee purposes, to combine the materials ``flat'' renewal fees in 10
CFR part 170 with the annual fees in 10 CFR part 171.
This action also recognizes that the NRC's ``regulatory service''
provided to licensees, as referred to in OBRA-90, is comprised of the
total regulatory activities that the NRC determines are needed to
regulate a class of licensees. These regulatory activities include not
only ``flat'' fee inspections but also research, rulemaking, orders,
enforcement actions, responses to allegations, incident investigations,
and other activities necessary to regulate classes of licensees. In
addition to being consistent with the regulatory service concept of
OBRA-90, the NRC believes that materials licensees' ``flat'' renewal
fees can be combined with their annual fees without creating any
significant questions of fairness. This is because the concept of the
annual fee, including the renewal fee, has, in effect, already been
implemented for most materials licensees. First, materials licensees
currently pay a ``flat fee'' per renewal based on the average cost of a
renewal for their fee category, and second, the renewal term of five
years is identical for most materials licensees. Thus, licensees in the
same materials license fee category already pay essentially the same
average annual cost for renewals. Further, the average cost will
decrease to a relatively small amount as a result of the five-year
extension and potential change in license duration. Therefore,
combining renewal and annual fees results in essentially the same
average cost per license over time. This approach would provide
materials licensees with simpler and more predictable NRC fee charges
as there would be no additional fees paid for periodic renewals.
Because certain materials FY 1996 annual fees would include renewals,
those materials licensees who paid a ``flat'' 10 CFR Part 170 renewal
fee for renewal applications filed in FY 1996 will be issued a refund,
as appropriate.
Beginning in FY 1996, the NRC is also proposing that annual fees
for most materials licenses be billed on the anniversary date of the
license (licensees whose annual fees are $100,000 or more would
continue to be assessed quarterly). The annual fee assessed would be
the fee in effect on the license anniversary date. The proposal would
apply to those materials licenses in the following fee categories: 1.C.
and 1.D.; 2.A.(2) through 2.C.; 3.A. through 3.P.; 4.A. through 9.D.,
and 10.B. Billing most materials licenses on the anniversary date of
the license would allow the NRC to improve the efficiency of its
billing process; under this proposal an average of approximately 500
annual fee invoices would be sent to materials licensees each month.
The current practice of billing over 6,000 materials licensees
simultaneously each fiscal year would be eliminated. For annual fee
purposes, the anniversary date of the materials license is considered
to be the first day of the month in which the original materials
license was issued. For example, if the original materials license was
issued on June 17 then, for annual fee purposes, the anniversary date
of the materials license would be June 1 and the licensee would be
billed in June of each year for the annual fee in effect on June 1. The
proposed change to the billing system would mean that during the
transition period of FY 1996 affected materials licensees with an
anniversary date falling between October 1, 1995, and the effective
date of the FY 1996 fee rule would receive a bill payable on the
effective date of the FY 1996 final rule. Affected materials licensees
with license anniversary dates falling on or after the effective date
of the FY 1996 final rule would be billed during their anniversary
month of their license. Under this proposal, some materials licensees
would unavoidably receive two annual fee bills during the 12 month
transition period. For example, a materials licensee who paid its FY
1996 annual fee bill in April 1996, the planned effective date of the
FY 1996 fee rule, would receive a bill six months later in October 1996
(FY 1997) if October is the anniversary month of that materials
license. In this example, the licensee would pay the same annual fee in
FY 1997 (October) as he paid in FY 1996 (April). Materials licensees
would continue to pay fees at the FY 1996 rate in FY 1997 until such
time as the FY 1997 final fee rule becomes effective. Each bill would
be for a different fiscal year, therefore, no double billing would
occur.
The NRC believes that the efficiencies gained by billing certain
materials annual fees throughout the year as well as having materials
licensees know exactly when they will be billed each year for the
annual fee outweigh the inconveniences that may be caused during the
transition period. New licenses issued during FY 1996 would receive a
prorated annual fee in accordance with the current proration provision
of Sec. 171.17. For example, those new materials licenses issued during
the period October 1 through March 31 of the FY would be assessed one-
half the annual fee for FY 1996. New materials licenses issued on or
after April 1, 1996, will not be assessed an annual fee for FY 1996.
Thereafter, the full annual fee is due and payable each subsequent
fiscal year on the anniversary date of the license. Beginning with the
effective date of the FY 1996 final rule, affected licensees would be
billed and would pay the annual fee in effect on the anniversary date
of the license. Affected licensees who are not sure of the anniversary
date of their materials license should check the original issue date of
the license.
A materials licensee may pay a reduced annual fee if the licensee
qualifies as a small entity under the NRC's size standards and
certifies that it is a small entity using NRC Form 526.
The amount or range of the FY 1996 annual fees for all materials
licensees is summarized as follows:
[[Page 2954]]
Materials Licenses Annual Fee Ranges
------------------------------------------------------------------------
Category of license Annual fees
------------------------------------------------------------------------
Part 70--High enriched fuel facility $2,404,000.
Part 70--Low enriched fuel facility. $1,180,000.
Part 40--UF6 conversion facility.... $598,100.
Part 40--Uranium recovery facilities $20,600 to $57,000.
Part 30--Byproduct Material Licenses $450 to $21,700.\1\
Part 71--Transportation of $950 to $72,800.
Radioactive Material.
Part 72--Independent Storage of $261,100.
Spent Nuclear Fuel.
------------------------------------------------------------------------
\1\Excludes the annual fee for a few military ``master'' materials
licenses of broad-scope issued to Government agencies, which is
$388,600.
Section 171.16(e) would be revised in its entirety to indicate the
activities that were a part of the additional charge (surcharge)
included in the FY 1995 annual fees. These activities are listed and
would continue to be shown for convenience.
Footnote 1 of 10 CFR 171.16(d) would be amended to provide a waiver
of the annual fees for materials licensees, and holders of
certificates, registrations, and approvals, who either filed for
termination of their licenses or approvals or filed for possession
only/storage only licenses before October 1, 1995, and permanently
ceased licensed activities entirely by September 30, 1995. All other
licensees and approval holders who held a license or approval on
October 1, 1995, are subject to the FY 1996 annual fees.
Section 171.19 Payment.
Paragraph (b) would be revised to give credit for partial payments
made by certain licensees in FY 1996 toward their FY 1996 annual fees.
The NRC anticipates that the first, second, and third quarterly
payments for FY 1996 will have been made by operating power reactor
licensees and some large materials licensees before the final rule is
effective. Therefore, the NRC will credit payments received for those
quarterly annual fee assessments toward the total annual fee to be
assessed. The NRC will adjust the fourth quarterly bill to recover the
full amount of the revised annual fee or to make refunds, as necessary.
The NRC also expects that certain materials licensees will have paid
renewal fees for renewal applications that were filed in FY 1996,
whereas this proposed rule includes the renewals in the annual fee. The
NRC will refund these renewal fee payments, as appropriate. Payment of
the annual fee is due on the date of the invoice and interest accrues
from the invoice date. However, interest will be waived if payment is
received within 30 days from the invoice date.
Paragraph (c) would be revised to update fiscal year references and
to delete the references concerning payment requirements for those
licensees whose annual fees are less than $100,000.
A new paragraph (d) would be added to cover those licensees whose
fees are less than $100,000 and who would be billed on the anniversary
date of their license beginning in FY 1996.
During the past five years many licensees have indicated that,
although they held a valid NRC license authorizing the possession and
use of special nuclear, source, or byproduct material, they were either
not using the material to conduct operations or had disposed of the
material and no longer needed the license. In response, the NRC has
consistently stated that annual fees are assessed based on whether a
licensee holds a valid NRC license that authorizes possession and use
of radioactive material. Whether or not a licensee is actually
conducting operations using the material is a matter of licensee
discretion. The NRC cannot control whether a licensee elects to possess
and use radioactive material once it receives a license from the NRC.
Therefore, the NRC reemphasizes that the annual fee will be assessed
based on whether a licensee holds a valid NRC license that authorizes
possession and use of radioactive material. To remove any uncertainty,
the NRC issued minor clarifying amendments to 10 CFR 171.16, footnotes
1 and 7 on July 20, 1993 (58 FR 38700).
The NRC reinstated the exemption from 10 CFR part 171 annual fees
for nonprofit educational institutions on April 18, 1994 (59 FR 12539,
March 17, 1994). In that final rule, the NRC indicated that although
nonprofit research institutions were not exempt from annual fees, such
institutions were free to file an exemption request based on the
``public good'' concept if they felt they could qualify. Several
nonprofit research institutions have since filed and been granted an
exemption from the annual fees on that basis. In addition, some Federal
agencies who hold materials licenses have filed for exemption from
annual fees based on the public good concept as well. The requests from
Federal agencies to receive public good exemptions have been denied by
the NRC. The NRC did not intend to extend public good exemptions to
Federal agencies. Therefore, the NRC does not intend to grant public
good exemptions to Federal agencies.
IV. Electronic Access
Comments on the proposed rule may be submitted through the Internet
by addressing electronic mail to INTERNET:[email protected] Comments may
also be submitted electronically, in either ASCII text or WordPerfect
format (version 5.1 or later), by calling the NRC Electronic Rulemaking
Bulletin Board (BBS) on FEDWORLD.
The BBS is an electronic information system operated by the
National Technical Information Service of the Department of Commerce.
The purpose of this BBS is to facilitate public participation in the
NRC regulatory process, particularly rulemakings. This proposed
rulemaking is available for review and comment on the BBS. The BBS may
be accessed using a personal computer, a modem, and one of the commonly
available communications software packages, or directly via the
Internet.
The NRC rulemaking bulletin board (rulemaking subsystem) on
FEDWORLD can be accessed directly by using a personal computer and
modem, and dialing the toll free number 1-800-303-9672. Communication
software parameters should be set as follows: parity to none, data bits
to 8, and stop bits to 1 (N,8,1). Using ANSI or VT-100 terminal
emulation, the NRC rulemaking subsystem can then be accessed by
selecting the ``Rules Menu'' option from the ``NRC Main Menu.'' For
further information about options available for NRC at FEDWORLD consult
the ``Help/Information Center'' from the ``NRC Main Menu.'' Users will
find the ``FEDWORLD Online User's Guides'' particularly helpful.
The NRC subsystem on FEDWORLD also can be accessed by a direct dial
phone number for the main FEDWORLD BBS at 703-321-3339, or by using
Telnet via Internet: fedworld.gov. Using the 703 number to contact
FEDWORLD, the NRC subsystem will be accessed from the main FEDWORLD
menu by selecting the ``Regulatory, Government Administration and State
Systems,'' then selecting ``Regulatory Information Mall.'' At that
point, a menu will be displayed that has the option ``U.S. Nuclear
Regulatory Commission'' that will take you to the NRC Online main menu.
The NRC Online area also can be accessed directly by typing ``/go nrc''
at a FEDWORLD command line. If you access NRC from FEDWORLD's main
menu, you may return to FEDWORLD
[[Page 2955]]
by selecting the ``Return to FEDWORLD'' option from the NRC Online Main
Menu. However, if you access NRC at FEDWORLD by using NRC's toll-free
number, you will have full access to all NRC systems, but you will not
have access to the main FEDWORLD system.
If you contact FEDWORLD using Telnet, you will see the NRC area and
menus, including the ``Rules Menu.'' Although you will be able to
download documents and leave messages, you will not be able to write
comments or upload files. If you contact FEDWORLD using File Transfer
Program (FTP), all files can be accessed and downloaded, but uploads
are not allowed, and all you will see is a list of files without
descriptions (normal Gopher look). An index file listing all files
within a subdirectory, with descriptions, is available. There is a 15-
minute time limit for FTP access.
Although FEDWORLD can be accessed through the World Wide Web as
well, like FTP, that mode only provides access for downloading files
and does not display the NRC ``Rules Menu.''
For more information on NRC bulletin boards call Mr. Arthur Davis,
Systems Integration and Development Branch, U.S. Nuclear Regulatory
Commission, Washington, DC 20555, telephone 301-415-5780; e-mail
AXD3@nrc.gov.
V. Environmental Impact: Categorical Exclusion
The NRC has determined that this proposed rule is the type of
action described in categorical exclusion 10 CFR 51.22(c)(1).
Therefore, neither an environmental impact statement nor an
environmental impact assessment has been prepared for the proposed
regulation. By its very nature, this regulatory action does not affect
the environment, and therefore, no environmental justice issues are
raised. (A discussion of environmental justice can be found in
Executive Order No. 12898--Federal Actions to Address Environmental
Justice in Minority Populations and Low-Income Populations, dated
February 11, 1994.)
VI. Paperwork Reduction Act Statement
This proposed rule contains no information collection requirements
and, therefore, is not subject to the requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501 et seq.).
VII. Regulatory Analysis
With respect to 10 CFR part 170, this proposed rule was developed
pursuant to Title V of the Independent Offices Appropriation Act of
1952 (IOAA) (31 U.S.C. 9701) and the Commission's fee guidelines. When
developing these guidelines the Commission took into account guidance
provided by the U.S. Supreme Court on March 4, 1974, in its decision of
National Cable Television Association, Inc. v. United States, 415 U.S.
36 (1974) and Federal Power Commission v. New England Power Company,
415 U.S. 345 (1974). In these decisions, the Court held that the IOAA
authorizes an agency to charge fees for special benefits rendered to
identifiable persons measured by the ``value to the recipient'' of the
agency service. The meaning of the IOAA was further clarified on
December 16, 1976, by four decisions of the U.S. Court of Appeals for
the District of Columbia: National Cable Television Association v.
Federal Communications Commission, 554 F.2d 1094 (D.C. Cir. 1976);
National Association of Broadcasters v. Federal Communications
Commission, 554 F.2d 1118 (D.C. Cir. 1976); Electronic Industries
Association v. Federal Communications Commission, 554 F.2d 1109 (D.C.
Cir. 1976) and Capital Cities Communication, Inc. v. Federal
Communications Commission, 554 F.2d 1135 (D.C. Cir. 1976). These
decisions of the Courts enabled the Commission to develop fee
guidelines that are still used for cost recovery and fee development
purposes.
The Commission's fee guidelines were upheld on August 24, 1979, by
the U.S. Court of Appeals for the Fifth Circuit in Mississippi Power
and Light Co. v. U.S. Nuclear Regulatory Commission, 601 F.2d 223 (5th
Cir. 1979), cert. denied, 444 U.S. 1102 (1980). The Court held that--
(1) The NRC had the authority to recover the full cost of providing
services to identifiable beneficiaries;
(2) The NRC could properly assess a fee for the costs of providing
routine inspections necessary to ensure a licensee's compliance with
the Atomic Energy Act and with applicable regulations;
(3) The NRC could charge for costs incurred in conducting
environmental reviews required by NEPA;
(4) The NRC properly included the costs of uncontested hearings and
of administrative and technical support services in the fee schedule;
(5) The NRC could assess a fee for renewing a license to operate a
low-level radioactive waste burial site; and
(6) The NRC's fees were not arbitrary or capricious.
With respect to 10 CFR part 171, on November 5, 1990, the Congress
passed Pub. L. 101-508, the Omnibus Budget Reconciliation Act of 1990
(OBRA-90) which required that for FYs 1991 through 1995, approximately
100 percent of the NRC budget authority be recovered through the
assessment of fees. OBRA-90 was amended in 1993 to extend the 100
percent fee recovery requirement for NRC through FY 1998. To accomplish
this statutory requirement, the NRC, in accordance with Sec. 171.13, is
publishing the proposed amount of the FY 1996 annual fees for operating
reactor licensees, fuel cycle licensees, materials licensees, and
holders of Certificates of Compliance, registrations of sealed source
and devices and QA program approvals, and Government agencies. OBRA-90
and the Conference Committee Report specifically state that--
(1) The annual fees be based on the Commission's FY 1996 budget of
$473.3 million less the amounts collected from Part 170 fees and the
funds directly appropriated from the NWF to cover the NRC's high level
waste program;
(2) The annual fees shall, to the maximum extent practicable, have
a reasonable relationship to the cost of regulatory services provided
by the Commission; and
(3) The annual fees be assessed to those licensees the Commission,
in its discretion, determines can fairly, equitably, and practicably
contribute to their payment.
10 CFR part 171, which established annual fees for operating power
reactors effective October 20, 1986 (51 FR 33224; September 18, 1986),
was challenged and upheld in its entirety in Florida Power and Light
Company v. United States, 846 F.2d 765 (D.C. Cir. 1988), cert. denied,
490 U.S. 1045 (1989).
10 CFR parts 170 and 171, which established fees based on the FY
1989 budget, were also legally challenged. As a result of the Supreme
Court decision in Skinner v. Mid-American Pipeline Co., 109 S. Ct. 1726
(1989), and the denial of certiorari in Florida Power and Light, all of
the lawsuits were withdrawn.
The NRC's FY 1991 annual fee rule was largely upheld by the D.C.
Circuit Court of Appeals in Allied Signal v. NRC, 988 F.2d 146 (D.C.
Cir. 1993).
VIII. Regulatory Flexibility Analysis
The NRC is required by the Omnibus Budget Reconciliation Act of
1990 to recover approximately 100 percent of its budget authority
through the assessment of user fees. OBRA-90 further requires that the
NRC establish a schedule of charges that fairly and equitably allocates
the aggregate amount of these charges among licensees.
[[Page 2956]]
This proposed rule establishes the schedules of fees that are
necessary to implement the Congressional mandate for FY 1996. The
proposed rule results in a decrease in the annual fees charged to all
licensees, and holders of certificates, registrations, and approvals.
The Regulatory Flexibility Analysis, prepared in accordance with 5
U.S.C. 604, is included as Appendix A to this proposed rule.
IX. Backfit Analysis
The NRC has determined that the backfit rule, 10 CFR 50.109, does
not apply to this proposed rule and that a backfit analysis is not
required for this proposed rule. The backfit analysis is not required
because these proposed amendments do not require the modification of or
additions to systems, structures, components, or the design of a
facility or the design approval or manufacturing license for a facility
or the procedures or organization required to design, construct or
operate a facility.
List of Subjects
10 CFR Part 170
Byproduct material, Import and export licenses, Intergovernmental
relations, Non-payment penalties, Nuclear materials, Nuclear power
plants and reactors, Source material, Special nuclear material.
10 CFR Part 171
Annual charges, Byproduct material, Holders of certificates,
registrations, approvals, Intergovernmental relations, Non-payment
penalties, Nuclear materials, Nuclear power plants and reactors, Source
material, Special nuclear material.
For the reasons set out in the preamble and under the authority of
the Atomic Energy Act of 1954, as amended, and 5 U.S.C. 553, the NRC is
proposing to adopt the following amendments to 10 CFR parts 170 and
171.
PART 170--FEES FOR FACILITIES, MATERIALS, IMPORT AND EXPORT
LICENSES, AND OTHER REGULATORY SERVICES UNDER THE ATOMIC ENERGY ACT
OF 1954, AS AMENDED
1. The authority citation for part 170 continues to read as
follows:
Authority: 31 U.S.C. 9701, 96 Stat. 1051; sec. 301, Pub. L. 92-
314, 86 Stat. 222 (42 U.S.C. 2201w); sec. 201, Pub. L. 93-4381, 88
Stat. 1242, as amended (42 U.S.C. 5841); sec. 205, Pub. L. 101-576,
104 Stat. 2842, (31 U.S.C. 901).
2. In Sec. 170.12, paragraph (d)(1) is removed and reserved and
paragraphs (a) and (g) are revised to read as follows:
Sec. 170.12 Payment of fees.
(a) Application fees. Each application for which a fee is
prescribed shall be accompanied by a remittance in the full amount of
the fee. The NRC will not issue a new license or amendment prior to the
receipt of the prescribed fee. All application fees will be charged
irrespective of the Commission's disposition of the application or a
withdrawal of the application.
* * * * *
(d) * * *
(1) [Reserved].
* * * * *
(g) Inspection fees. Fees for all inspections subject to full cost
recovery will be assessed on a per inspection basis for completed
inspections and are payable, on a quarterly basis, upon notification by
the Commission. Inspection costs include preparation time, time on
site, and documentation time and any associated contractual service
costs, but exclude the time involved in the processing and issuance of
a notice of violation or civil penalty.
* * * * *
3. Section 170.20 is revised to read as follows:
Sec. 170.20 Average cost per professional staff-hour.
Fees for permits, licenses, amendments, renewals, special projects,
Part 55 requalification and replacement examinations and tests, other
required reviews, approvals, and inspections under Secs. 170.21 and
170.31 that are based upon the full costs for the review or inspection
will be calculated using the following applicable professional staff-
hour rates:
Reactor Program (Sec. 170.21 Activities)..................$128 per hour
Nuclear Materials and Nuclear Waste Program (Sec. 170.31
Activities)...............................................$120 per hour
4. In Sec. 170.21, the introductory text, Category K, and footnotes
1 and 2 to the table are revised to read as follows:
Sec. 170.21 Schedule of fees for production and utilization
facilities, review of standard referenced design approvals, special
projects, inspections and import and export licenses.
Applicants for construction permits, manufacturing licenses,
operating licenses, import and export licenses, approvals of facility
standard reference designs, requalification and replacement
examinations for reactor operators, and special projects and holders of
construction permits, licenses, and other approvals shall pay fees for
the following categories of services.
Schedule of Facility Fees
[See footnotes at end of table]
------------------------------------------------------------------------
Facility Categories and Type of Fees Fees\1\\2\
------------------------------------------------------------------------
* * * *
* * *
K. Import and export licenses:
Licenses for the import and export only of production
and utilization facilities or the export only of
components for production and utilization facilities
issued pursuant to 10 CFR Part 110.
1. Application for import or export of reactors and
other facilities and exports of components which
must be reviewed by the Commissioners and the
Executive Branch, for example, actions under 10 CFR
110.40(b).
Application--new license........................ $7,800
Amendment....................................... 7,800
2. Application for export of reactor and other
components requiring Executive Branch review only,
for example, those actions under 10 CFR 110.41(a)
(1)-(8).
Application--new license........................ 4,800
Amendment....................................... 4,800
3. Application for export of components requiring
foreign government assurances only.
Application--new license........................ 3,000
Amendment....................................... 3,000
[[Page 2957]]
4. Application for export of facility components and
equipment not requiring Commissioner review,
Executive Branch review, or foreign government
assurances.
Application--new license........................ 1,200
Amendment....................................... 1,200
5. Minor amendment of any export or import license
to extend the expiration date, change domestic
information, or make other revisions which do not
require analysis or review. Ame
Amendment............................................... 120
------------------------------------------------------------------------
\1\Fees will not be charged for orders issued by the Commission pursuant
to Sec. 2.202 of this chapter or for amendments resulting specifically
from the requirements of these types of Commission orders. Fees will
be charged for approvals issued under a specific exemption provision
of the Commission's regulations under Title 10 of the Code of Federal
Regulations (e.g., Secs. 50.12, 73.5) and any other sections now or
hereafter in effect regardless of whether the approval is in the form
of a license amendment, letter of approval, safety evaluation report,
or other form. Fees for licenses in this schedule that are initially
issued for less than full power are based on review through the
issuance of a full power license (generally full power is considered
100 percent of the facility's full rated power). Thus, if a licensee
received a low power license or a temporary license for less than full
power and subsequently receives full power authority (by way of
license amendment or otherwise), the total costs for the license will
be determined through that period when authority is granted for full
power operation. If a situation arises in which the Commission
determines that full operating power for a particular facility should
be less than 100 percent of full rated power, the total costs for the
license will be at that determined lower operating power level and not
at the 100 percent capacity.
\2\Full cost fees will be determined based on the professional staff
time and appropriate contractual support services expended. For
applications currently on file and for which fees are determined based
on the full cost expended for the review, the professional staff hours
expended for the review of the application up to the effective date of
the final rule will be determined at the professional rates in effect
at the time the service was provided. For those applications currently
on file for which review costs have reached an applicable fee ceiling
established by the June 20, 1984, and July 2, 1990, rules but are
still pending completion of the review, the cost incurred after any
applicable ceiling was reached through January 29, 1989, will not be
billed to the applicant. Any professional staff-hours expended above
those ceilings on or after January 30, 1989, will be assessed at the
applicable rates established by Sec. 170.20, as appropriate, except
for topical reports whose costs exceed $50,000. Costs which exceed
$50,000 for any topical report, amendment, revision or supplement to a
topical report completed or under review from January 30, 1989,
through August 8, 1991, will not be billed to the applicant. Any
professional hours expended on or after August 9, 1991, will be
assessed at the applicable rate established in Sec. 170.20. In no
event will the total review costs be less than twice the hourly rate
shown in Sec. 170.20.
* * * * * * *
5. Section 170.31 is revised to read as follows:
Sec. 170.31 Schedule of fees for materials licenses and other
regulatory services, including inspections, and import and export
licenses.
Applicants for materials licenses, import and export licenses, and
other regulatory services and holders of materials licenses, or import
and export licenses shall pay fees for the following categories of
services. This schedule includes fees for health and safety and
safeguards inspections where applicable.
Schedule of Materials Fees
[See footnotes at end of table]
------------------------------------------------------------------------
Category of materials licenses and type of fees\1\ Fee\2\, \3\
------------------------------------------------------------------------
1. Special nuclear material:
A. Licenses for possession and use of 200 grams or
more of plutonium in unsealed form or 350 grams or
more of contained U-235 in unsealed form or 200
grams or more of U-233 in unsealed form. This
includes applications to terminate licenses as well
as licenses authorizing possession only:
License, Renewal, Amendment..................... Full Cost
Inspections..................................... Full Cost
B. Licenses for receipt and storage of spent fuel at
an independent spent fuel storage installation
(ISFSI):
License, Renewal, Amendment..................... Full Cost
Inspections..................................... Full Cost
C. Licenses for possession and use of special
nuclear material in sealed sources contained in
devices used in industrial measuring systems,
including x-ray fluorescence analyzers:\4\
Application--New license........................ 550
Amendment....................................... 300
D. All other special nuclear material licenses,
except licenses authorizing special nuclear
material in unsealed form in combination that would
constitute a critical quantity, as defined in Sec.
150.11 of this chapter, for which the licensee
shall pay the same fees as those for Category
1A:\4\
Application--New license........................ 600
Amendment....................................... 290
E. Licenses for construction and operation of a
uranium enrichment facility.
Application..................................... 125,000
License, Renewal, Amendment..................... Full Cost
Inspections..................................... Full Cost
2. Source material:
A. (1) Licenses for possession and use of source
material in recovery operations such as milling, in-
situ leaching, heap-leaching, refining uranium mill
concentrates to uranium hexafluoride, ore buying
stations, ion exchange facilities and in processing
of ores containing source material for extraction
of metals other than uranium or thorium, including
licenses authorizing the possession of byproduct
waste material (tailings) from source material
recovery operations, as well as licenses
authorizing the possession and maintenance of a
facility in a standby mode:
License, Renewal, Amendment..................... Full Cost
Inspections..................................... Full Cost
[[Page 2958]]
(2) Licenses that authorize the receipt of
byproduct material, as defined in Section
11e(2) of the Atomic Energy Act, from other
persons for possession and disposal except
those licenses subject to fees in Category
2.A.(1):
License, renewal, amendment................. Full Cost
Inspections................................. Full Cost
(3) Licenses that authorize the receipt of
byproduct material, as defined in Section
11e(2) of the Atomic Energy Act, from other
persons for possession and disposal incidental
to the disposal of the uranium waste tailings
generated by the licensee's milling operations,
except those licenses subject to the fees in
Category 2.A.(1):
License, renewal, amendment................. Full Cost
Inspections................................. Full Cost
B. Licenses which authorize the possession, use and/
or installation of source material for shielding:
Application--New license........................ 160
Amendment....................................... 240
C. All other source material licenses:
Application--New license........................ 2,800
Amendment....................................... 420
3. Byproduct material:
A. Licenses of broad scope for possession and use of
byproduct material issued pursuant to parts 30 and
33 of this chapter for processing or manufacturing
of items containing byproduct material for
commercial distribution:
Application--New license........................ 3,000
Amendment....................................... 550
B. Other licenses for possession and use of
byproduct material issued pursuant to part 30 of
this chapter for processing or manufacturing of
items containing byproduct material for commercial
distribution:
Application--New license........................ 1,200
Amendment....................................... 580
C. Licenses issued pursuant to Secs. 32.72, 32.73,
and/or 32.74 of this chapter authorizing the
processing or manufacturing and distribution or
redistribution of radiopharmaceuticals, generators,
reagent kits and/or sources and devices containing
byproduct material:
Application--New license........................ 4,100
Amendment....................................... 520
D. Licenses and approvals issued pursuant to Secs.
32.72, 32.73, and/or 32.74 of this chapter
authorizing distribution or redistribution of
radiopharmaceuticals, generators, reagent kits and/
or sources or devices not involving processing of
byproduct material:
Application--New license........................ 1,500
Amendment....................................... 430
E. Licenses for possession and use of byproduct
material in sealed sources for irradiation of
materials in which the source is not removed from
its shield (self-shielded units):
Application--New license........................ $1,200
Amendment....................................... 360
F. Licenses for possession and use of less than
10,000 curies of byproduct material in sealed
sources for irradiation of materials in which the
source is exposed for irradiation purposes. This
category also includes underwater irradiators for
irradiation of materials where the source is not
exposed for irradiation purposes.
Application--New license........................ 1,500
Amendment....................................... 370
G. Licenses for possession and use of 10,000 curies
or more of byproduct material in sealed sources for
irradiation of materials in which the source is
exposed for irradiation purposes. This category
also includes underwater irradiators for
irradiation of materials where the source is not
exposed for irradiation purposes.
Application--New license........................ 6,000
Amendment....................................... 780
H. Licenses issued pursuant to subpart A of part 32
of this chapter to distribute items containing
byproduct material that require device review to
persons exempt from the licensing requirements of
part 30 of this chapter, except specific licenses
authorizing redistribution of items that have been
authorized for distribution to persons exempt from
the licensing requirements of part 30 of this
chapter:
Application--New license........................ 2,400
Amendment....................................... 1,000
I. Licenses issued pursuant to subpart A of part 32
of this chapter to distribute items containing
byproduct material or quantities of byproduct
material that do not require device evaluation to
persons exempt from the licensing requirements of
part 30 of this chapter, except for specific
licenses authorizing redistribution of items that
have been authorized for distribution to persons
exempt from the licensing requirements of part 30
of this chapter:
Application--New license........................ 4,400
Amendment....................................... 860
J. Licenses issued pursuant to subpart B of part 32
of this chapter to distribute items containing
byproduct material that require sealed source and/
or device review to persons generally licensed
under part 31 of this chapter, except specific
licenses authorizing redistribution of items that
have been authorized for distribution to persons
generally licensed under part 31 of this chapter:
Application--New license........................ 1,600
Amendment....................................... 290
K. Licenses issued pursuant to subpart B of part 32
of this chapter to distribute items containing
byproduct material or quantities of byproduct
material that do not require sealed source and/or
device review to persons generally licensed under
part 31 of this chapter, except specific licenses
authorizing redistribution of items that have been
authorized for distribution to persons generally
licensed under part 31 of this chapter:
Application--New license........................ 1,300
[[Page 2959]]
Amendment....................................... 310
L. Licenses of broad scope for possession and use of
byproduct material issued pursuant to parts 30 and
33 of this chapter for research and development
that do not authorize commercial distribution:
Application--New license........................ 4,300
Amendment....................................... 660
M. Other licenses for possession and use of
byproduct material issued pursuant to part 30 of
this chapter for research and development that do
not authorize commercial distribution:
Application--New license........................ 1,500
Amendment....................................... 610
N. Licenses that authorize services for other
licensees, except:
(1) Licenses that authorize only calibration and/
or leak testing services are subject to the
fees specified in fee Category 3P; and
(2) Licenses that authorize waste disposal
services are subject to the fees specified in
fee Categories 4A, 4B, and 4C:
Application--New license.................... 1,900
Amendment................................... 590
O. Licenses for possession and use of byproduct
material issued pursuant to part 34 of this chapter
for industrial radiography operations:
Application--New license........................ 3,900
Amendment....................................... 720
P. All other specific byproduct material licenses,
except those in Categories 4A through 9D:
Application--New license........................ 550
Amendment....................................... 300
4. Waste disposal and processing:
A. Licenses specifically authorizing the receipt of
waste byproduct material, source material, or
special nuclear material from other persons for the
purpose of contingency storage or commercial land
disposal by the licensee; or licenses authorizing
contingency storage of low-level radioactive waste
at the site of nuclear power reactors; or licenses
for receipt of waste from other persons for
incineration or other treatment, packaging of
resulting waste and residues, and transfer of
packages to another person authorized to receive or
dispose of waste material:
License, renewal, amendment..................... Full Cost
Inspections..................................... Full Cost
B. Licenses specifically authorizing the receipt of
waste byproduct material, source material, or
special nuclear material from other persons for the
purpose of packaging or repackaging the material.
The licensee will dispose of the material by
transfer to another person authorized to receive or
dispose of the material:
Application--New license........................ 3,400
Amendment....................................... 410
C. Licenses specifically authorizing the receipt of
prepackaged waste byproduct material, source
material, or special nuclear material from other
persons. The licensee will dispose of the material
by transfer to another person authorized to receive
or dispose of the material:
Application--New license........................ 1,700
Amendment....................................... 290
5. Well logging:
A. Licenses for possession and use of byproduct
material, source material, and/or special nuclear
material for well logging, well surveys, and tracer
studies other than field flooding tracer studies:
Application--New license........................ 3,200
Amendment....................................... 640
B. Licenses for possession and use of byproduct
material for field flooding tracer studies:
License, renewal, amendment..................... Full Cost
6. Nuclear laundries:
A. Licenses for commercial collection and laundry of
items contaminated with byproduct material, source
material, or special nuclear material:
Application--New license........................ 5,100
Amendment....................................... 790
7. Human use of byproduct, source, or special nuclear
material:
A. Licenses issued pursuant to parts 30, 35, 40, and
70 of this chapter for human use of byproduct
material, source material, or special nuclear
material in sealed sources contained in teletherapy
devices:
Application--New license........................ 2,800
Amendment....................................... 470
B. Licenses of broad scope issued to medical
institutions or two or more physicians pursuant to
parts 30, 33, 35, 40, and 70 of this chapter
authorizing research and development, including
human use of byproduct material, except licenses
for byproduct material, source material, or special
nuclear material in sealed sources contained in
teletherapy devices:
Application--New license........................ 3,000
Amendment....................................... 580
C. Other licenses issued pursuant to parts 30, 35,
40, and 70 of this chapter for human use of
byproduct material, source material, and/or special
nuclear material, except licenses for byproduct
material, source material, or special nuclear
material in sealed sources contained in teletherapy
devices:
Application--New license........................ 1,400
Amendment....................................... 440
8. Civil defense:
A. Licenses for possession and use of byproduct
material, source material, or special nuclear
material for civil defense activities:
Application--New license........................ 760
[[Page 2960]]
Amendment....................................... 350
9. Device, product, or sealed source safety evaluation:
A. Safety evaluation of devices or products
containing byproduct material, source material, or
special nuclear material, except reactor fuel
devices, for commercial distribution:
Application--each device........................ 3,400
Amendment--each device.......................... 1,200
B. Safety evaluation of devices or products
containing byproduct material, source material, or
special nuclear material manufactured in accordance
with the unique specifications of, and for use by,
a single applicant, except reactor fuel devices:
Application--each device........................ 1,700
Amendment--each device.......................... 600
C. Safety evaluation of sealed sources containing
byproduct material, source material, or special
nuclear material, except reactor fuel, for
commercial distribution:
Application--each source........................ 720
Amendment--each source.......................... 240
D. Safety evaluation of sealed sources containing
byproduct material, source material, or special
nuclear material, manufactured in accordance with
the unique specifications of, and for use by, a
single applicant, except reactor fuel:
Application--each source........................ 360
Amendment--each source.......................... 120
10. Transportation of radioactive material:
A. Evaluation of casks, packages, and shipping
containers:
Approval, Renewal, Amendment.................... Full Cost
Inspections..................................... Full Cost
B. Evaluation of 10 CFR part 71 quality assurance
programs:
Application--Approval........................... 340
Amendment....................................... 250
Inspections..................................... Full Cost
11. Review of standardized spent fuel facilities:
Approval, Renewal, Amendment........................ Full Cost
Inspections......................................... Full Cost
12. Special projects:\5\
Approvals and preapplication licensing activities... Full Cost
Inspections......................................... Full Cost
13. A. Spent fuel storage cask Certificate of
Compliance:
Approvals....................................... Full Cost
Amendments, revisions, and supplements.......... Full Cost
Reapproval...................................... Full Cost
B. Inspections related to spent fuel storage cask
Certificate of Compliance....................... Full Cost
C. Inspections related to storage of spent fuel
under
Sec. 72.210 of this chapter..................... Full Cost
14. Byproduct, source, or special nuclear material
licenses and other approvals authorizing
decommissioning, decontamination, reclamation, or site
restoration activities pursuant to 10 CFR parts 30, 40,
70, and 72 of this chapter:
Approval, Renewal, Amendment........................ Full Cost
Inspections......................................... Full Cost
15. Import and Export licenses:
Licenses issued pursuant to 10 CFR part 110 of
this chapter for the import and export only of
special nuclear material, source material,
tritium and other byproduct material, heavy
water, or nuclear grade graphite:
A. Application for export or import of HEU and
other materials, including radioactive waste,
which must be reviewed by the Commissioners and
the Executive Branch, for example, those
actions under 10 CFR 110.40(b). This category
includes application for export or import of
radioactive wastes in multiple forms from
multiple generators or brokers in the exporting
country and/or going to multiple treatment,
storage or disposal facilities in one or more
receiving countries:
Application-new license..................... 7,800
Amendment................................... 7,800
B. Application for export or import of special
nuclear material, source material, tritium and
other byproduct material, heavy water, or
nuclear grade graphite, including radioactive
waste, requiring Executive Branch review but
not Commissioner review. This category includes
application for the export or import of
radioactive waste involving a single form of
waste from a single class of generator in the
exporting country to a single treatment,
storage and/or disposal facility in the
receiving country:
Application-new license..................... 4,800
Amendment................................... 4,800
C. Application for export of routine reloads of
low enriched uranium reactor fuel and exports
of source material requiring only foreign
government assurances under the Atomic Energy
Act:
Application-new license..................... 3,000
Amendment................................... 3,000
[[Page 2961]]
D. Application for export or import of other
materials, including radioactive waste, not
requiring Commissioner review, Executive Branch
review, or foreign government assurances under
the Atomic Energy Act. This category includes
application for export or import of radioactive
waste where the NRC has previously authorized
the export or import of the same form of waste
to or from the same or similar parties,
requiring only confirmation from the receiving
facility and licensing authorities that the
shipments may proceed according to previously
agreed understandings and procedures:
Application-new license..................... 1,200
Amendment................................... 1,200
E. Minor amendment of any export or import
license to extend the expiration date, change
domestic information, or make other revisions
which do not require analysis, review, or
consultations with other agencies or foreign
governments:
Amendment................................... 120
16. Reciprocity:
Agreement State licensees who conduct activities in
a non-Agreement State under the reciprocity
provisions of 10 CFR 150.20:
Application (initial filing of Form 241)........ 1,100
Revisions....................................... 200
------------------------------------------------------------------------
\1\Types of fees--Separate charges, as shown in the schedule, will be
assessed for preapplication consultations and reviews and applications
for new licenses and approvals, issuance of new licenses and
approvals, amendments and certain renewals to existing licenses and
approvals, safety evaluations of sealed sources and devices, and
certain inspections. The following guidelines apply to these charges:
(a) Application fees. Applications for new materials licenses and
approvals; applications to reinstate expired, terminated or inactive
licenses and approvals except those subject to fees assessed at full
costs, and applications filed by Agreement State licensees to register
under the general license provisions of 10 CFR 150.20, must be
accompanied by the prescribed application fee for each category,
except that:
(1) Applications for licenses covering more than one fee category of
special nuclear material or source material must be accompanied by the
prescribed application fee for the highest fee category; and
(2) Applications for licenses under Category 1E must be accompanied by
the prescribed application fee of $125,000.
(b) License/approval/review fees. Fees for applications for new licenses
and approvals and for preapplication consultations and reviews subject
to full cost fees (fee Categories 1A, 1B, 1E, 2A, 4A, 5B, 10A, 11, 12,
13A, and 14) are due upon notification by the Commission in accordance
with Sec. 170.12(b), (e), and (f).
(c) Renewal/reapproval fees. Applications subject to full cost fees (fee
Categories 1A, 1B, 1E, 2A, 4A, 5B, 10A, 11, 13A, and 14) are due upon
notification by the Commission in accordance with Sec. 170.12(d).
(d) Amendment/Revision Fees.
(1) Applications for amendments to licenses and approvals and revisions
to reciprocity initial applications, except those subject to fees
assessed at full costs, must be accompanied by the prescribed
amendment/revision fee for each license/revision affected. An
application for an amendment to a license or approval classified in
more than one fee category must be accompanied by the prescribed
amendment fee for the category affected by the amendment unless the
amendment is applicable to two or more fee categories in which case
the amendment fee for the highest fee category would apply. For those
licenses and approvals subject to full costs (fee Categories 1A, 1B,
1E, 2A, 4A, 5B, 10A, 11, 12, 13A, and 14), amendment fees are due upon
notification by the Commission in accordance with Sec. 170.12(c).
(2) An application for amendment to a materials license or approval that
would place the license or approval in a higher fee category or add a
new fee category must be accompanied by the prescribed application fee
for the new category.
(3) An application for amendment to a license or approval that would
reduce the scope of a licensee's program to a lower fee category must
be accompanied by the prescribed amendment fee for the lower fee
category.
(4) Applications to terminate licenses authorizing small materials
programs, when no dismantling or decontamination procedure is
required, are not subject to fees.
(e) Inspection fees. Inspections resulting from investigations conducted
by the Office of Investigations and nonroutine inspections that result
from third-party allegations are not subject to fees. The fees
assessed at full cost will be determined based on the professional
staff time required to conduct the inspection multiplied by the rate
established under Sec. 170.20 plus any applicable contractual support
services costs incurred. Inspection fees are due upon notification by
the Commission in accordance with Sec. 170.12(g).
\2\Fees will not be charged for orders issued by the Commission pursuant
to 10 CFR 2.202 or for amendments resulting specifically from the
requirements of these types of Commission orders. However, fees will
be charged for approvals issued under a specific exemption provision
of the Commission's regulations under Title 10 of the Code of Federal
Regulations (e.g., 10 CFR 30.11, 40.14, 70.14, 73.5, and any other
sections now or hereafter in effect) regardless of whether the
approval is in the form of a license amendment, letter of approval,
safety evaluation report, or other form. In addition to the fee shown,
an applicant may be assessed an additional fee for sealed source and
device evaluations as shown in Categories 9A through 9D.
\3\Full cost fees will be determined based on the professional staff
time and appropriate contractual support services expended. For those
applications currently on file and for which fees are determined based
on the full cost expended for the review, the professional staff hours
expended for the review of the application up to the effective date of
the final rule will be determined at the professional rates in effect
at the time the service was provided. For applications currently on
file for which review costs have reached an applicable fee ceiling
established by the June 20, 1984, and July 2, 1990, rules, but are
still pending completion of the review, the cost incurred after any
applicable ceiling was reached through January 29, 1989, will not be
billed to the applicant. Any professional staff-hours expended above
those ceilings on or after January 30, 1989, will be assessed at the
applicable rates established by Sec. 170.20, as appropriate, except
for topical reports whose costs exceed $50,000. Costs which exceed
$50,000 for each topical report, amendment, revision, or supplement to
a topical report completed or under review from January 30, 1989,
through August 8, 1991, will not be billed to the applicant. Any
professional hours expended on or after August 9, 1991, will be
assessed at the applicable rate established in Sec. 170.20. The
minimum total review cost is twice the hourly rate shown in Sec.
170.20.
\4\Licensees paying fees under Categories 1A, 1B, and 1E are not subject
to fees under Categories 1C and 1D for sealed sources authorized in
the same license except in those instances in which an application
deals only with the sealed sources authorized by the license.
Applicants for new licenses that cover both byproduct material and
special nuclear material in sealed sources for use in gauging devices
will pay the appropriate application fee for fee Category 1C only.
\5\Fees will not be assessed for requests/reports submitted to the NRC:
(a) In response to a Generic Letter or NRC Bulletin that does not result
in an amendment to the license, does not result in the review of an
alternate method or reanalysis to meet the requirements of the Generic
Letter, or does not involve an unreviewed safety issue;
(b) In response to an NRC request (at the Associate Office Director
level or above) to resolve an identified safety or environmental
issue, or to assist NRC in developing a rule, regulatory guide, policy
statement, generic letter, or bulletin; or
(c) As a means of exchanging information between industry organizations
and the NRC for the purpose of supporting generic regulatory
improvements or efforts.
[[Page 2962]]
PART 171--ANNUAL FEES FOR REACTOR OPERATING LICENSES, AND FUEL
CYCLE LICENSES AND MATERIALS LICENSES, INCLUDING HOLDERS OF
CERTIFICATES OF COMPLIANCE, REGISTRATIONS, AND QUALITY ASSURANCE
PROGRAM APPROVALS AND GOVERNMENT AGENCIES LICENSED BY THE NRC
6. The authority citation for part 171 continues to read as
follows:
Authority: Sec. 7601, Pub. L. 99-272, 100 Stat. 146, as amended
by sec. 5601, Pub. L. 100-203, 101 Stat. 1330, as amended by Sec.
3201, Pub. L. 101-239, 103 Stat. 2106 as amended by sec. 6101, Pub.
L. 101-508, 104 Stat. 1388 (42 U.S.C. 2213); sec. 301, Pub. L. 92-
314, 86 Stat. 222 (42 U.S.C. 2201(w)); sec. 201, 88 Stat. 1242, as
amended (42 U.S.C. 5841); sec. 2903, Pub. L. 102-486, 106 Stat.
3125, (42 U.S.C. 2214 note).
7. In Sec. 171.15, paragraph (d) is removed and reserved and
paragraphs (a), (b), (c), and (e) are revised to read as follows:
Sec. 171.15 Annual Fees: Reactor operating licenses.
(a) Each person licensed to operate a power, test, or research
reactor shall pay the annual fee for each unit for which the person
holds an operating license at any time during the Federal FY in which
the fee is due, except for those test and research reactors exempted in
Sec. 171.11 (a)(1) and (a)(2).
(b) The FY 1996 uniform annual fee for each operating power reactor
which must be collected by September 30, 1996, is $2,747,000. This fee
has been determined by adjusting the FY 1995 annual fee downward by
approximately 6 percent. The FY 1995 annual fee was comprised of a base
annual fee and an additional charge (surcharge). The activities
comprising the base FY 1995 annual fee are as follows:
(1) Power reactor safety and safeguards regulation except licensing
and inspection activities recovered under 10 CFR Part 170 of this
chapter.
(2) Research activities directly related to the regulation of power
reactors.
(3) Generic activities required largely for NRC to regulate power
reactors, e.g., updating part 50 of this chapter, or operating the
Incident Response Center.
(c) The activities comprising the FY 1995 surcharge are as follows:
(1) Activities not attributable to an existing NRC licensee or
class of licensees; e.g., reviews submitted by other government
agencies (e.g., DOE) that do not result in a license or are not
associated with a license; international cooperative safety program and
international safeguards activities; low-level waste disposal generic
activities; uranium enrichment generic activities; and
(2) Activities not currently assessed under 10 CFR Part 170
licensing and inspection fees based on existing Commission policy,
e.g., reviews and inspections conducted of nonprofit educational
institutions, and costs that would not be collected from small entities
based on Commission policy in accordance with the Regulatory
Flexibility Act.
* * * * *
(d) [Reserved].
(e) The FY 1996 annual fees for licensees authorized to operate a
nonpower (test and research) reactor licensed under Part 50 of this
chapter, except for those reactors exempted from fees under
Sec. 171.11(a), are as follows:
Research reactor................................................$52,900
Test reactor....................................................$52,900
* * * * *
8. In Sec. 171.16, the introductory text of paragraph (c) and
paragraphs (c)(1), (c)(4), (d), and (e) are revised to read as follows:
Sec. 171.16 Annual Fees: Materials Licensees, Holders of Certificates
of Compliance, Holders of Sealed Source and Device Registrations,
Holders of Quality Assurance Program Approvals and Government agencies
licensed by the NRC.
* * * * *
(c) A licensee who is required to pay an annual fee under this
section may qualify as a small entity. If a licensee qualifies as a
small entity and provides the Commission with the proper certification,
the licensee may pay reduced annual fees for FY 1996 as follows:
------------------------------------------------------------------------
Maximum
annual fee
per
licensed
category
------------------------------------------------------------------------
Small Businesses Not Engaged in Manufacturing and Small Not-
For-Profit Organizations (Gross Annual Receipts):
$350,000 to $5 million................................... $1,800
Less than $350,000....................................... 400
Manufacturing entities that have an average of 500
employees or less:
35 to 500 employees...................................... 1,800
Less than 35 employees................................... 400
Small Governmental Jurisdictions (Including publicly
supported educational institutions) (Population):
20,000 to 50,000......................................... 1,800
Less than 20,000......................................... 400
Educational Institutions that are not State or Publicly:
Supported, and have 500 Employees or Less:
35 to 500 employees...................................... 1,800
Less than 35 employees................................... 400
------------------------------------------------------------------------
(1) A licensee qualifies as a small entity if it meets the size
standards established by the NRC (See 10 CFR 2.810).
* * * * *
(4) For FY 1996, the maximum annual fee a small entity is required
to pay is $1,800 for each category applicable to the license(s).
(d) The FY 1996 annual fees for materials licensees and holders of
certificates, registrations or approvals subject to fees under this
section are shown below. The FY 1996 annual fees, which must be
collected by September 30, 1996, have been determined by adjusting
downward the FY 1995 annual fees by approximately 6 percent. The FY
1995 annual fee was comprised of a base annual fee and an additional
charge (surcharge). The activities comprising the FY 1995 surcharge are
shown in paragraph (e) of this section.
Schedule of Materials Annual Fees and Fees for Government Agencies Licensed by NRC
[See footnotes at end of table]
----------------------------------------------------------------------------------------------------------------
Annual
Category of materials licenses fees\1\\2\\3\
----------------------------------------------------------------------------------------------------------------
1. Special nuclear material:
A.(1) Licenses for possession and use of U-235 or
plutonium for fuel fabrication activities.
(a) Strategic Special Nuclear Material:
Babcock & Wilcox............................... SNM-42 $2,404,000
Nuclear Fuel Services.......................... SNM-124 2,404,000
(b) Low Enriched Uranium in Dispersable Form Used
for Fabrication of Power Reactor Fuel:
Combustion Engineering (Hematite).............. SNM-33 1,180,000
[[Page 2963]]
General Electric Company....................... SNM-1097 1,180,000
Siemens Nuclear Power.......................... SNM-1227 1,180,000
Westinghouse Electric Company.................. SNM-1107 1,180,000
(2) All other special nuclear materials licenses not
included in Category 1.A.(1) which are licensed for
fuel cycle activities.
(a) Facilities with limited operations:
B&W Fuel Company............................... SNM-1168 469,400
(b) All Others:
General Electric............................... SNM-960 318,800
B. Licenses for receipt and storage of spent fuel at an 261,100
independent spent fuel storage installation (ISFSI).
C. Licenses for possession and use of special nuclear 1,200
material in sealed sources contained in devices used
in industrial measuring systems, including x-ray
fluorescence analyzers.
D. All other special nuclear material licenses, except 2,800
licenses authorizing special nuclear material in
unsealed form in combination that would constitute a
critical quantity, as defined in Sec. 150.11 of this
chapter, for which the licensee shall pay the same
fees as those for Category 1.A.(2).
E. Licenses for the operation of a uranium enrichment \11\N/A
facility.
2. Source material:
A.(1) Licenses for possession and use of source 598,100
material for refining uranium mill concentrates to
uranium hexafluoride.
(2) Licenses for possession and use of source material
in recovery operations such as milling, in-situ
leaching, heap-leaching, ore buying stations, ion
exchange facilities and in processing of ores
containing source material for extraction of metals
other than uranium or thorium, including licenses
authorizing the possession of byproduct waste material
(tailings) from source material recovery operations,
as well as licenses authorizing the possession and
maintenance of a facility in a standby mode..
Class I facilities\4\.............................. 57,000
Class II facilities\4\............................. 32,200
Other facilities\4\................................ 20,600
(3) Licenses that authorize the receipt of byproduct 41,800
material, as defined in Section 11e.(2) of the Atomic
Energy Act, from other persons for possession and
disposal, except those licenses subject to the fees in
Category 2.A.(2) or Category 2.A.(4).
(4) Licenses that authorize the receipt of byproduct 7,400
material, as defined in Section 11e(2) of the Atomic
Energy Act, from other persons for possession and
disposal incidental to the disposal of the uranium
waste tailings generated by the licensee's milling
operations, except those licenses subject to the fees
in Category 2.A.(2).
B. Licenses which authorize only the possession, use 450
and/or installation of source material for shielding.
C. All other source material licenses.................. 8,100
3. Byproduct material:
A. Licenses of broad scope for possession and use of 15,400
byproduct material issued pursuant to parts 30 and 33
of this chapter for processing or manufacturing of
items containing byproduct material for commercial
distribution.
B. Other licenses for possession and use of byproduct 5,200
material issued pursuant to part 30 of this chapter
for processing or manufacturing of items containing
byproduct material for commercial distribution.
C. Licenses issued pursuant to Secs. 32.72, 32.73, and/ 10,400
or 32.74 of this chapter authorizing the processing or
manufacturing and distribution or redistribution of
radiopharmaceuticals, generators, reagent kits and/or
sources and devices containing byproduct material.
This category also includes the possession and use of
source material for shielding authorized pursuant to
part 40 of this chapter when included on the same
license.
D. Licenses and approvals issued pursuant to Secs. 4,100
32.72, 32.73, and/or 32.74 of this chapter authorizing
distribution or redistribution of
radiopharmaceuticals, generators, reagent kits and/or
sources or devices not involving processing of
byproduct material. This category also includes the
possession and use of source material for shielding
authorized pursuant to part 40 of this chapter when
included on the same license..
E. Licenses for possession and use of byproduct 2,900
material in sealed sources for irradiation of
materials in which the source is not removed from its
shield (self-shielded units).
F. Licenses for possession and use of less than 10,000 3,500
curies of byproduct material in sealed sources for
irradiation of materials in which the source is
exposed for irradiation purposes. This category also
includes underwater irradiators for irradiation of
materials in which the source is not exposed for
irradiation purposes.
G. Licenses for possession and use of 10,000 curies or 18,200
more of byproduct material in sealed sources for
irradiation of materials in which the source is
exposed for irradiation purposes. This category also
includes underwater irradiators for irradiation of
materials in which the source is not exposed for
irradiation purposes.
H. Licenses issued pursuant to subpart A of part 32 of 4,600
this chapter to distribute items containing byproduct
material that require device review to persons exempt
from the licensing requirements of part 30 of this
chapter, except specific licenses authorizing
redistribution of items that have been authorized for
distribution to persons exempt from the licensing
requirements of part 30 of this chapter.
[[Page 2964]]
I. Licenses issued pursuant to subpart A of part 32 of 8,200
this chapter to distribute items containing byproduct
material or quantities of byproduct material that do
not require device evaluation to persons exempt from
the licensing requirements of part 30 of this chapter,
except for specific licenses authorizing
redistribution of items that have been authorized for
distribution to persons exempt from the licensing
requirements of part 30 of this chapter.
J. Licenses issued pursuant to subpart B of part 32 of 3,500
this chapter to distribute items containing byproduct
material that require sealed source and/or device
review to persons generally licensed under part 31 of
this chapter, except specific licenses authorizing
redistribution of items that have been authorized for
distribution to persons generally licensed under part
31 of this chapter.
K. Licenses issued pursuant to subpart B of part 31 of 3,000
this chapter to distribute items containing byproduct
material or quantities of byproduct material that do
not require sealed source and/or device review to
persons generally licensed under part 31 of this
chapter, except specific licenses authorizing
redistribution of items that have been authorized for
distribution to persons generally licensed under part
31 of this chapter.
L. Licenses of broad scope for possession and use of 11,400
byproduct material issued pursuant to parts 30 and 33
of this chapter for research and development that do
not authorize commercial distribution.
M. Other licenses for possession and use of byproduct 5,100
material issued pursuant to part 30 of this chapter
for research and development that do not authorize
commercial distribution.
N. Licenses that authorize services for other
licensees, except:
(1) Licenses that authorize only calibration and/or
leak testing services are subject to the fees
specified in fee Category 3P; and
(2) Licenses that authorize waste disposal services 5,600
are subject to the fees specified in fee
Categories 4A, 4B, and 4C.
O. Licenses for possession and use of byproduct 13,000
material issued pursuant to part 34 of this chapter
for industrial radiography operations. This category
also includes the possession and use of source
material for shielding authorized pursuant to part 40
of this chapter when authorized on the same license.
P. All other specific byproduct material licenses, 1,600
except those in Categories 4A through 9D.
4. Waste disposal and processing:
A. Licenses specifically authorizing the receipt of 94,400
waste byproduct material, source material, or special
nuclear material from other persons for the purpose of
contingency storage or commercial land disposal by the
licensee; or licenses authorizing contingency storage
of low-level radioactive waste at the site of nuclear
power reactors; or licenses for receipt of waste from
other persons for incineration or other treatment,
packaging of resulting waste and residues, and
transfer of packages to another person authorized to
receive or dispose of waste material.
B. Licenses specifically authorizing the receipt of 13,300
waste byproduct material, source material, or special
nuclear material from other persons for the purpose of
packaging or repackaging the material. The licensee
will dispose of the material by transfer to another
person authorized to receive or dispose of the
material.
C. Licenses specifically authorizing the receipt of 7,100
prepackaged waste byproduct material, source material,
or special nuclear material from other persons. The
licensee will dispose of the material by transfer to
another person authorized to receive or dispose of the
material.
5. Well logging:
A. Licenses for possession and use of byproduct 7,500
material, source material, and/or special nuclear
material for well logging, well surveys, and tracer
studies other than field flooding tracer studies.
B. Licenses for possession and use of byproduct 12,200
material for field flooding tracer studies.
6. Nuclear laundries:
A. Licenses for commercial collection and laundry of 13,600
items contaminated with byproduct material, source
material, or special nuclear material.
7. Human use of byproduct, source, or special nuclear
material:
A. Licenses issued pursuant to parts 30, 35, 40, and 70 9,500
of this chapter for human use of byproduct material,
source material, or special nuclear material in sealed
sources contained in teletherapy devices. This
category also includes the possession and use of
source material for shielding when authorized on the
same license.
B. Licenses of broad scope issued to medical 21,700
institutions or two or more physicians pursuant to
parts 30, 33, 35, 40, and 70 of this chapter
authorizing research and development, including human
use of byproduct material except licenses for
byproduct material, source material, or special
nuclear material in sealed sources contained in
teletherapy devices. This category also includes the
possession and use of source material for shielding
when authorized on the same license9.
C. Other licenses issued pursuant to parts 30, 35, 40, 4,300
and 70 of this chapter for human use of byproduct
material, source material, and/or special nuclear
material except licenses for byproduct material,
source material, or special nuclear material in sealed
sources contained in teletherapy devices. This
category also includes the possession and use of
source material for shielding when authorized on the
same license9.
8. Civil defense:
A. Licenses for possession and use of byproduct 1,600
material, source material, or special nuclear material
for civil defense activities.
9. Device, product, or sealed source safety evaluation:
A. Registrations issued for the safety evaluation of 6,700
devices or products containing byproduct material,
source material, or special nuclear material, except
reactor fuel devices, for commercial distribution.
[[Page 2965]]
B. Registrations issued for the safety evaluation of 3,400
devices or products containing byproduct material,
source material, or special nuclear material
manufactured in accordance with the unique
specifications of, and for use by, a single applicant,
except reactor fuel devices.
C. Registrations issued for the safety evaluation of 1,400
sealed sources containing byproduct material, source
material, or special nuclear material, except reactor
fuel, for commercial distribution.
D. Registrations issued for the safety evaluation of 720
sealed sources containing byproduct material, source
material, or special nuclear material, manufactured in
accordance with the unique specifications of, and for
use by, a single applicant, except reactor fuel.
10. Transportation of radioactive material:
A. Certificates of Compliance or other package
approvals issued for design of casks, packages, and
shipping containers.
Spent Fuel, High-Level Waste, and.................. 6N/A
Other Casks........................................ 6N/A
B. Approvals issued of 10 CFR part 71 quality assurance
programs.
Users and Fabricators.............................. 72,800
Users.............................................. 950
11. Standardized spent fuel facilities..................... 6N/A
12. Special Projects....................................... \6\N/A
13. A. Spent fuel storage cask Certificate of Compliance... \6\N/A
B. General licenses for storage of spent fuel under 10 261,100
CFR 72.210.
14. Byproduct, source, or special nuclear material licenses \7\N/A
and other approvals authorizing decommissioning,
decontamination, reclamation, or site restoration
activities pursuant to 10 CFR parts 30, 40, 70, and 72.
15. Import and Export licenses............................. \8\N/A
16. Reciprocity............................................ \8\N/A
17. Master materials licenses of broad scope issued to 388,600
Government agencies.
18. Department of Energy:
A. Certificates of Compliance.......................... \10\1,078,000 ..............
B. Uranium Mill Tailing Radiation Control Act (UMTRCA) 1,813,000
activities.
----------------------------------------------------------------------------------------------------------------
\1\Annual fees will be assessed based on whether a licensee held a valid license with the NRC authorizing
possession and use of radioactive material during the fiscal year. However, the annual fee is waived for those
materials licenses and holders of certificates, registrations, and approvals who either filed for termination
of their licenses or approvals or filed for possession only/storage licenses prior to October 1, 1995, and
permanently ceased licensed activities entirely by September 30, 1995. Annual fees for licensees who filed for
termination of a license, downgrade of a license, or for a POL during the fiscal year and for new licenses
issued during the fiscal year will be prorated in accordance with the provisions of Sec. 171.17. If a person
holds more than one license, certificate, registration, or approval, the annual fee(s) will be assessed for
each license, certificate, registration, or approval held by that person. For licenses that authorize more
than one activity on a single license (e.g., human use and irradiator activities), annual fees will be
assessed for each category applicable to the license. Licensees paying annual fees under Category 1.A. (1).
are not subject to the annual fees of Category 1.C and 1.D for sealed sources authorized in the license.
\2\Payment of the prescribed annual fee does not automatically renew the license, certificate, registration, or
approval for which the fee is paid. Renewal applications must be filed in accordance with the requirements of
parts 30, 40, 70, 71, or 72 of this chapter.
\3\For FYs 1997 and 1998, fees for these materials licenses will be calculated and assessed in accordance with
Sec. 171.13 and will be published in the Federal Register for notice and comments.
\4\A Class I license includes mill licenses issued for the extraction of uranium from uranium ore. A Class II
license includes solution mining licenses (in-situ and heap leach) issued for the extraction of uranium from
uranium ores including research and development licenses. An ``other'' license includes licenses for
extraction of metals, heavy metals, and rare earths.
\5\Two licenses have been issued by NRC for land disposal of special nuclear material. Once NRC issues a LLW
disposal license for byproduct and source material, the Commission will consider establishing an annual fee
for this type of license.
\6\Standardized spent fuel facilities, parts 71 and 72 Certificates of Compliance, and special reviews, such as
topical reports, are not assessed an annual fee because the generic costs of regulating these activities are
primarily attributable to the users of the designs, certificates, and topical reports.
\7\Licensees in this category are not assessed an annual fee because they are charged an annual fee in other
categories while they are licensed to operate.
\8\No annual fee is charged because it is not practical to administer due to the relatively short life or
temporary nature of the license.
\9\Separate annual fees will not be assessed for pacemaker licenses issued to medical institutions who also hold
nuclear medicine licenses under Categories 7B or 7C.
\10\This includes Certificates of Compliance issued to DOE that are not under the Nuclear Waste Fund.
\11\No annual fee has been established because there are currently no licensees in this particular fee category.
(e) The activities comprising the FY 1995 surcharge are as follows:
(1) LLW disposal generic activities;
(2) Activities not attributable to an existing NRC licensee or
classes of licensees; e.g., international cooperative safety program
and international safeguards activities; support for the Agreement
State program; site decommissioning management plan (SDMP) activities
and
(3) Activities not currently assessed under 10 CFR part 170
licensing and inspection fees based on existing law or Commission
policy, e.g., reviews and inspections conducted of nonprofit
educational institutions and Federal agencies; activities related to
decommissioning and reclamation and costs that would not be collected
from small entities based on Commission policy in accordance with the
Regulatory Flexibility Act.
* * * * *
9. In Sec. 171.19, paragraphs (b) and (c) are revised and a new
paragraph (d) is added to read as follows:
Sec. 171.19 Payment.
* * * * *
(b) For FY 1996 through FY 1998, the Commission will adjust the
fourth quarterly bill for operating power
[[Page 2966]]
reactors and certain materials licensees to recover the full amount of
the revised annual fee. If the amounts collected in the first three
quarters exceed the amount of the revised annual fee, the overpayment
will be refunded. The NRC will refund any ``flat'' materials renewal
fees payments received for renewal applications filed in FY 1996, as
appropriate. All other licensees, or holders of a certificate,
registration, or approval of a QA program will be sent a bill for the
full amount of the annual fee upon publication of the final rule or on
the anniversary date of the license. Payment is due on the invoice date
and interest accrues from the date of the invoice. However, interest
will be waived if payment is received within 30 days from the invoice
date.
(c) For FYs 1996 through 1998, annual fees in the amount of
$100,000 or more and described in the Federal Register notice pursuant
to Sec. 171.13 must be paid in quarterly installments of 25 percent as
billed by the NRC. The quarters begin on October 1, January 1, April 1,
and July 1 of each fiscal year.
(d) For FYs 1996 through 1998, annual fees of less than $100,000
must be paid as billed by the NRC. Beginning in FY 1996, materials
license annual fees that are less than $100,000 will be billed on the
anniversary of the license. The materials licensees that would be
billed on the anniversary date of the license are those covered by fee
categories 1.C. and 1.D.; 2.A.(2) through 2.C.; 3.A. through 3.P.; 4.B.
through 9.D.; and 10.B. For annual fee purposes, the anniversary date
of the license is considered to be the first day of the month in which
the original license was issued by the NRC. During the transition year
of FY 1996, licensees with license anniversary dates falling between
October 1 and the effective date of the FY 1996 final rule would
receive an annual fee bill payable on the effective date of the final
rule, and licensees with license anniversary dates that fall on or
after the effective date of the final rule would be billed on the
anniversary of their license. Starting with the effective date of the
FY 1996 final rule, licensees that are billed on the license
anniversary date would be assessed the annual fee in effect on the
anniversary date of the license.
Dated at Rockville, MD, this 19th day of January, 1996.
For the Nuclear Regulatory Commission.
James M. Taylor,
Executive Director for Operations.
Appendix A to this Proposed Rule Regulatory Flexibility Analysis for
the Amendments to 10 CFR Part 170 (License Fees) and 10 CFR Part 171
(Annual Fees)
I. Background.
The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.)
establishes as a principle of regulatory practice that agencies
endeavor to fit regulatory and informational requirements,
consistent with applicable statutes, to a scale commensurate with
the businesses, organizations, and government jurisdictions to which
they apply. To achieve this principle, the Act requires that
agencies consider the impact of their actions on small entities. If
the agency cannot certify that a rule will not significantly impact
a substantial number of small entities, then a regulatory
flexibility analysis is required to examine the impacts on small
entities and the alternatives to minimize these impacts.
To assist in considering these impacts under the Regulatory
Flexibility Act (RFA), first the NRC adopted size standards for
determining which NRC licensees qualify as small entities (50 FR
50241, December 9, 1985). These size standards were clarified
November 6, 1991 (56 FR 56672). On April 7, 1994 (59 FR 16513), the
Small Business Administration (SBA) issued a final rule changing its
size standards. The SBA adjusted its receipts-based size standards
levels to mitigate the effects of inflation from 1984 to 1994. On
November 30, 1994 (59 FR 61293), the NRC published a proposed rule
to amend its size standards. After evaluating the two comments
received, a final rule that would revise the NRC's size standards as
proposed was developed and approved by the SBA on March 24, 1995.
The NRC published the final rule revising its size standards on
April 11, 1995 (60 FR 18344). The revised standards became effective
May 11, 1995. The revised standards adjusted the NRC receipts-based
size standards from $3.5 million to $5 million to accommodate
inflation and to conform to the SBA final rule. The NRC also
eliminated the separate $1 million size standard for private
practice physicians and applied a receipts-based size standard of $5
million to this class of licensees. This mirrored the revised SBA
standard of $5 million for medical practitioners. The NRC also
established a size standard of 500 or fewer employees for business
concerns that are manufacturing entities. This standard is the most
commonly used SBA employee standard and is the standard applicable
to the types of manufacturing industries that hold an NRC license.
The NRC used the revised standards in the final FY 1995 fee rule
and proposes to continue their use in this FY 1996 proposed rule.
The small entity fee categories in Sec. 171.16(c) of this proposed
rule reflect the changes in the NRC's size standards adopted in FY
1995. A new maximum small entity fee for manufacturing industries
with 35 to 500 employees was established at $1,800 and a lower-tier
small entity fee of $400 was established for those manufacturing
industries with less than 35 employees. The lower-tier receipts-
based threshold of $250,000 was raised to $350,000 to reflect
approximately the same percentage adjustment as that made by the SBA
when they adjusted the receipts-based standard from $3.5 million to
$5 million. The NRC believes that the proposal to continue these
actions would reduce the impact of annual fees on small businesses
in FY 1996. The NRC size standards are codified at 10 CFR 2.810.
Pub. L. 101-508, the Omnibus Budget Reconciliation Act of 1990
(OBRA-90), requires that the NRC recover approximately 100 percent
of its budget authority, less appropriations from the Nuclear Waste
Fund, for Fiscal Years (FY) 1991 through 1995 by assessing license
and annual fees. OBRA-90 was amended in 1993 to extend the 100
percent recovery requirement for NRC through 1998. For FY 1991, the
amount for collection was approximately $445.3 million; for FY 1992,
approximately $492.5 million; for FY 1993 about $518.9 million; for
FY 1994 about $513 million; for FY 1995 about $503.6 million and the
amount to be collected in FY 1996 is approximately $462.3 million.
To comply with OBRA-90, the Commission amended its fee
regulations in 10 CFR parts 170 and 171 in FY 1991 (56 FR 31472,
July 10, 1991) in FY 1992, (57 FR 32691, July 23, 1992) in FY 1993
(58 FR 38666, July 20, 1993) in FY 1994 (59 FR 36895, July 20, 1994)
and in FY 1995 (60 FR 32218, June 20, 1995) based on a careful
evaluation of over 1,000 comments. These final rules established the
methodology used by NRC in identifying and determining the fees
assessed and collected in FYs 1991-1995.
The NRC indicated in the FY 1995 final rule that it would
attempt to stabilize annual fees as follows. Beginning in FY 1996,
it would adjust the annual fees only by the percentage change (plus
or minus) in NRC's total budget authority unless there was a
substantial change in the total NRC budget authority or the
magnitude of the budget allocated to a specific class of licensees,
in which case the annual fee base would be recalculated (60 FR
32225, June 20, 1995). The NRC also indicated that the percentage
change would be adjusted based on changes in the 10 CFR part 170
fees and other receipts as well as an adjustment for the number of
licensees paying the fees. As a result, the NRC is proposing that
the FY 1996 annual fees for all licensees be established at 6.4
percent below the FY 1995 annual fees. The NRC believes that the
proposed 6.4 percent downward adjustment to the FY 1995 annual fees
is not a substantial enough change to warrant establishing a new
baseline for FY 1996. Therefore, the NRC is proposing to establish
the FY 1996 annual fees for all licensees at a level of about 6
percent below the FY 1995 fees.
The NRC is also proposing to continue the streamlining of the
fee structure and process for materials licenses which began in FY
1995. Two changes are being proposed in this area.
First, the NRC is proposing to assess annual fees for certain
materials licenses on
[[Page 2967]]
the anniversary date of the license. Billing certain materials licenses
on the anniversary date of the license would allow NRC to make
improved efficiencies in the billing process whereby approximately
500 annual fee invoices would be sent to materials licensees each
month. The current practice of billing over 6,000 materials
licensees at the same time in the fiscal year would be eliminated.
The NRC believes that the efficiencies gained by billing certain
materials annual fees on a monthly basis as well as materials
licensees knowing exactly when they will be billed each year for the
annual fee outweigh the inconveniences that may be caused during the
FY 1996 transition period.
Second, the NRC is proposing to further streamline the materials
fee program and improve the predictability of fees by eliminating
the materials ``flat'' renewal fees in Sec. 170.31. This proposed
action is consistent with the NRC's recent Business Process
Reengineering initiative to extend the duration of certain materials
licenses. The NRC published a proposed rule in the Federal Register
on September 8, 1995, explaining this initiative (60 FR 46784). In
the proposed rule, certain materials licenses would be extended for
five years beyond their expiration date. Additionally, comments were
requested on the general topic of the appropriate duration of
licenses. A final rule was published in the Federal Register on
January 16, 1996 (61 FR 1109).
II. Impact on Small Entities
The comments received on the proposed FY 1991-1995 fee rule
revisions and the small entity certifications received in response
to the final FY 1991-1995 fee rules indicate that NRC licensees
qualifying as small entities under the NRC's size standards are
primarily those licensed under the NRC's materials program.
Therefore, this analysis will focus on the economic impact of the
annual fees on materials licensees.
The Commission's fee regulations result in substantial fees
being charged to those individuals, organizations, and companies
that are licensed under the NRC materials program. Of these
materials licensees, about 18 percent (approximately 1,300
licensees) have requested small entity certification in the past. In
FY 1993, the NRC conducted a survey of its materials licensees. The
results of this survey indicated that about 25 percent of these
licensees could qualify as small entities under the current NRC size
standards.
The commenters on the FY 1991-1994 proposed fee rules indicated
the following results if the proposed annual fees were not modified:
--Large firms would gain an unfair competitive advantage over small
entities. One commenter noted that a small well-logging company (a
``Mom and Pop'' type of operation) would find it difficult to absorb
the annual fee, while a large corporation would find it easier.
Another commenter noted that the fee increase could be more easily
absorbed by a high-volume nuclear medicine clinic. A gauge licensee
noted that, in the very competitive soils testing market, the annual
fees would put it at an extreme disadvantage with its much larger
competitors because the proposed fees would be the same for a two-
person licensee as for a large firm with thousands of employees.
--Some firms would be forced to cancel their licenses. One
commenter, with receipts of less than $500,000 per year, stated that
the proposed rule would, in effect, force it to relinquish its soil
density gauge and license, thereby reducing its ability to do its
work effectively. Another commenter noted that the rule would force
the company and many other small businesses to get rid of the
materials license altogether. Commenters stated that the proposed
rule would result in about 10 percent of the well-logging licensees
terminating their licenses immediately and approximately 25 percent
terminating their licenses before the next annual assessment.
--Some companies would go out of business. One commenter noted that
the proposal would put it, and several other small companies, out of
business or, at the very least, make it hard to survive.
--Some companies would have budget problems. Many medical licensees
commented that, in these times of slashed reimbursements, the
proposed increase of the existing fees and the introduction of
additional fees would significantly affect their budgets. Another
noted that, in view of the cuts by Medicare and other third party
carriers, the fees would produce a hardship and some facilities
would experience a great deal of difficulty in meeting this
additional burden.
Over the past five years, approximately 2,900 license, approval,
and registration terminations have been requested. Although some of
these terminations were requested because the license was no longer
needed or licenses or registrations could be combined, indications
are that other termination requests were due to the economic impact
of the fees.
The NRC continues to receive written and oral comments from
small materials licensees. These commenters previously indicated
that the $3.5 million threshold for small entities was not
representative of small businesses with gross receipts in the
thousands of dollars. These commenters believe that the $1,800
maximum annual fee represents a relatively high percentage of gross
annual receipts for these ``Mom and Pop'' type businesses.
Therefore, even the reduced annual fee could have a significant
impact on the ability of these types of businesses to continue to
operate.
To alleviate the continuing significant impact of the annual
fees on a substantial number of small entities, the NRC considered
alternatives, in accordance with the RFA. These alternatives were
evaluated in the FY 1991 rule (56 FR 31472, July 10, 1991) in the FY
1992 rule (57 FR 32691, July 23, 1992), in the FY 1993 rule (58 FR
38666, July 20, 1993); in the FY 1994 rule (59 FR 36895, July 20,
1994) and in the FY 1995 rule (60 FR 32218, June 20, 1995). The
alternatives considered by the NRC can be summarized as follows.
--Base fees on some measure of the amount of radioactivity possessed
by the licensee (e.g., number of sources).
--Base fees on the frequency of use of the licensed radioactive
material (e.g., volume of patients).
--Base fees on the NRC size standards for small entities.
The NRC has reexamined the FY 1991-1995 evaluations of these
alternatives. Based on that reexamination, the NRC continues to
believe that establishment of a maximum fee for small entities is
the most appropriate option to reduce the impact on small entities.
The NRC established, and is continuing for FY 1996, a maximum
annual fee for small entities. The RFA and its implementing guidance
do not provide specific guidelines on what constitutes a significant
economic impact on a small entity. Therefore, the NRC has no
benchmark to assist it in determining the amount or the percent of
gross receipts that should be charged to a small entity. For FY
1996, the NRC will rely on the analysis previously completed that
established a maximum annual fee for a small entity and the amount
of costs that must be recovered from other NRC licensees as a result
of establishing the maximum annual fees.
The NRC continues to believe that the 10 CFR part 170 license
fees (application and amendment), or any adjustments to these
licensing fees during the past year, do not have a significant
impact on small entities. In issuing this proposed rule for FY 1996,
the NRC concludes that the 10 CFR part 170 materials license fees do
not have a significant impact on a substantial number of small
entities and that the 10 CFR part 171 maximum annual small entity
fee of $1,800 be continued.
By maintaining the maximum annual fee for small entities at
$1,800, the annual fee for many small entities is reduced while at
the same time materials licensees, including small entities, pay for
most of the FY 1996 costs attributable to them. The costs not
recovered from small entities are allocated to other materials
licensees and to operating power reactors. However, the amount that
must be recovered from other licensees as a result of maintaining
the maximum annual fee is not expected to increase. Therefore, the
NRC is continuing, for FY 1996, the maximum annual fee (base annual
fee plus surcharge) for certain small entities at $1,800 for each
fee category covered by each license issued to a small entity.
While reducing the impact on many small entities, the Commission
agrees that the maximum annual fee of $1,800 for small entities,
when added to the part 170 license fees, may continue to have a
significant impact on materials licensees with annual gross receipts
in the thousands of dollars. Therefore, as in FY 1992-1995, the NRC
is continuing the lower-tier small entity annual fee of $400 for
small entities with relatively low gross annual receipts. The lower-
tier small entity fee of $400 also applies to manufacturing
concerns, and educational institutions not State or publicly
supported, with less than 35 employees. This lower-tier small entity
fee was first established in the final rule published in the Federal
Register on April 17, 1992 (57 FR 13625) and now includes
manufacturing companies with a relatively small number of employees.
[[Page 2968]]
III. Summary
The NRC has determined the 10 CFR part 171 annual fees
significantly impacts a substantial number of small entities. A
maximum fee for small entities strikes a balance between the
requirement to collect 100 percent of the NRC budget and the
requirement to consider means of reducing the impact of the fee on
small entities. On the basis of its regulatory flexibility analyses,
the NRC concludes that a maximum annual fee of $1,800 for small
entities and a lower-tier small entity annual fee of $400 for small
businesses and not-for-profit organizations with gross annual
receipts of less than $350,000, small governmental jurisdictions
with a population of less than 20,000, small manufacturing entities
that have less than 35 employees and educational institutions that
are not State or publicly supported and have less than 35 employees
reduces the impact on small entities. At the same time, these
reduced annual fees are consistent with the objectives of OBRA-90.
Thus, the revised fees for small entities maintain a balance between
the objectives of OBRA-90 and the RFA. Therefore, the analysis and
conclusions established in the FY 1991-1995 rules remain valid for
this proposed rule for FY 1996.
[FR Doc. 96-1524 Filed 1-29-96; 8:45 am]
BILLING CODE 7590-01-P
