[Federal Register Volume 61, Number 72 (Friday, April 12, 1996)]
[Rules and Regulations]
[Pages 16203-16226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9026]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 61, No. 72 / Friday, April 12, 1996 / Rules
and Regulations
[[Page 16203]]
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: Final rule.
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SUMMARY: The Nuclear Regulatory Commission (NRC) is amending the
licensing, inspection, and annual fees charged to its applicants and
licensees. The 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.
EFFECTIVE DATE: June 11, 1996.
ADDRESSES: Copies of comments received and the agency workpapers that
support these final 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. Responses to Comments.
III. Final Action.
IV. Section-by-Section Analysis.
V. Environmental Impact: Categorical Exclusion.
VI. Paperwork Reduction Act Statement.
VII. Regulatory Analysis.
VIII. Regulatory Flexibility Analysis.
IX. Backfit Analysis.
I. Background
Public Law 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.
On January 30, 1996 (61 FR 2948), the NRC published a proposed rule
to establish the licensing, inspection, and annual fees necessary for
the NRC to recover approximately 100 percent of its budget authority
for FY 1996, less the appropriation received from the Nuclear Waste
Fund. Several changes were proposed by the NRC to the fees to be
assessed for FY 1996. These changes were highlighted in the proposed
rule (61 FR 2948; January 30, 1996). The major changes are summarized
as follows:
1. Stabilize 10 CFR Part 171 annual fees by adjusting all annual
fees downward by about 6 percent. This change is consistent with the
NRC's intention, stated in the FY 1995 final rule, that annual fees
would be stabilized, beginning in FY 1996, by adjusting the FY 1995
annual fees by the percent change (plus or minus) in the NRC budget
authority taking into consideration the estimated collections from 10
CFR Part 170 fees and the number of licensees paying fees;
2. Assess 10 CFR Part 171 annual fees of less than $100,000 to
materials licensees on the anniversary date of the license. This change
continues the streamlining of fees and allows the NRC to make the
billing process more efficient by distributing the billing and
collection of annual fees over the entire year. The current practice is
to bill over 6,000 materials licensees at the same time during the
fiscal year;
3. Eliminate the materials ``flat'' renewal fees in 10 CFR 170.31
and include the costs of the renewals in the annual fees in 10 CFR
171.16(d) for the affected licensees. This change continues the
simplification of fees initiated in FY 1995 and is consistent with
NRC's recent Business Process Reengineering initiatives to extend the
duration of certain materials licenses (61 FR 1109; January 16, 1996);
4. Revise the two professional hourly rates in 10 CFR 170.20 which
are used to determine the Part 170 fees assessed by the NRC. The rate
for FY 1996 for the reactor program is $128 per hour and the rate for
the materials program is $120 per hour; and
5. Adjust the 10 CFR 170.21 and 170.31 licensing (application and
amendment) ``flat'' fees for materials licenses to reflect the costs of
providing the licensing services.
II. Responses to Comments
The NRC received eight comments on the proposed rule. Although the
comment period ended on February 29, 1996, the NRC has reviewed and
[[Page 16204]]
evaluated all comments received, including those that were late.
Many of the comments were similar in nature. For evaluation
purposes, these comments have been grouped, as appropriate, and
addressed as single issues in this final rule. The comments are as
follows:
A. Comments Regarding the Major Changes Proposed in the FY 1996 Fee
Rule
1. Streamline and Stabilize Annual Fees
Comment. All commenters responding to this proposed change were
encouraged by and supported the positive steps taken by NRC to
equitably distribute and to reduce the burden of user fees on
licensees. Several commenters indicated that this change represents a
greater simplification and streamlining of the fee setting procedures
and has eliminated the dramatic swings in NRC fees seen in the past.
Commenters stated that the approximate 6 percent reduction in annual
fees for all licensees is evidence of this. Other commenters stated
that the NRC should continue the process of streamlining and
commensurate fee reduction because it is a responsible approach in
light of today's highly competitive global nuclear marketplace.
Response. Consistent with the comments, the final rule adopts the
methodology to streamline and stabilize FY 1996 annual fees by
adjusting these fees by the percentage change (plus or minus) in NRC's
total budget authority. The FY 1995 annual fees have been used as base
annual fees and these annual fees have been adjusted downward for FY
1996 based on the percentage change in the NRC's budget authority,
taking into consideration the total number of licensees paying fees and
estimated collections from 10 CFR Part 170 licensing and inspection
fees. Therefore for FY 1996, all annual fees have been adjusted 6.5
percent below the FY 1995 levels.
2. Assess Annual Fees of Less Than $100,000 to Materials Licenses on
the Anniversary Date of License
Comment. Commenters supported the NRC's proposal to invoice
materials annual fees of less than $100,000 on the anniversary date of
the license. Commenters stated that, while helping to assist NRC in its
billing efforts, it will also provide some relief to entities who have
several licenses. The proposed system will allow these licensees to
distribute their cash outlays over a longer period of time easing the
financial stresses caused by a single payment period.
Response. Consistent with the comments, the NRC in this final rule
will 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
paragraph is added to Sec. 171.19. For FY 1996, those affected
materials licenses with a license anniversary date between October 1,
1995, and the effective date of this final FY 1996 fee rule will 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 this final FY 1996 fee rule will 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 change are
listed in Sec. 171.19(d) of this final rule.
3. Revise the Two Professional Rates in 10 CFR 170.20 Based on the FY
1996 Budget and Adjust the 10 CFR 170.21 and 170.31 Licensing
(Application and Amendment) ``Flat'' Fees for Licenses to Reflect the
Costs of Providing the Licensing Services
Comment. Commenters supported the revised method of calculating two
hourly rates adopted by NRC in FY 1995 to separately, and more
equitably, allocate costs associated with the reactor program and the
materials program. Commenters stated that the two rates, based on cost
center concepts that identify and allocate budgeted resources, is
inherently fairer and more equitable to licensees and is more
consistent with Congressional intent to identify and properly assess
fees to those entities that utilize NRC resources and regulatory
services. However, some commenters indicated that, while they are
pleased that the materials rate increase is under 4 percent ($116 per
hour to $120 per hour) and generally in keeping with inflation, the
rate itself is unjustifiably high. These commenters stated that the
$120 hourly rate equals or exceeds the hourly rate of senior
consultants or principals at major (national) consulting companies and
that it exceeds the accepted rate for similar work in private industry.
Some commenters pointed out the increase in the hourly rates exceeds
the general increase that was provided to all Federal government
workers on January 1, 1996, and they encourage the NRC to control its
costs by seeking efficiencies in order to attain a downward trend of
licensing and inspection fees comparable to that being realized in the
annual fees. Other commenters indicated that the average cost per staff
hour assumes a lower number of work hours relative to that commonly
applied in industry and a multiplier which would appear to
significantly exceed those commonly enjoyed by private industry. Some
commenters stated that although summary calculations are presented in
the proposed revisions, insufficient detail is provided to determine
the justification for an increase in the hourly fees, i.e., the NRC has
not listed the assumptions used in forecasting the predicted FTEs (full
time equivalents) considered necessary for the materials program.
Response. Consistent with the comments, the NRC has established in
this final rule two professional hourly rates for FY 1996 which will be
used to determine the 10 CFR Part 170 fees. A rate of $128 per hour is
established in Sec. 170.20 for the reactor program and a second rate of
$120 per hour is established in Sec. 170.20 for the nuclear materials
and nuclear waste programs. The two rates are based on the ``cost
center'' concept that is now being used for budgeting purposes.
The NRC professional hourly rates are established to recover
approximately 100 percent of the agency's Congressionally-approved
budget, less the appropriation from the Nuclear Waste Fund (NWF), as
required by OBRA-90. The rates reflect the NRC budgeted cost per direct
professional hour. This cost includes the salary and benefits for the
direct hours, and a prorata share of the salary and benefits for the
program and agency overhead and agency general and administrative
expenses (e.g., rent, supplies, and information technology). Both the
method and budgeted costs used by the NRC in the development of the
hourly rates of $128 and $120 are discussed in detail in Part III,
Section-by-Section Analysis, relating to Sec. 170.20 of the proposed
rule (61 FR 2951; January 30, 1996) and the same section of this final
rule. For example, Table II shows the budgeted costs and the direct
FTEs that must be recovered through fees assessed for the hours
expended by the direct FTEs. The budgeted costs as well as the direct
resources are those required by the NRC to implement its statutory
responsibilities and effectively accomplish the mission of the agency.
Additional information on the hourly rates is provided in the NRC
workpapers located in the Public Document Room. The specific details
regarding the budget for FY 1996 are documented in the NRC's
publication ``Budget Estimates, Fiscal Years 1996-1997'' (NUREG-1100,
[[Page 16205]]
Volume 11), which is available to the public. Copies of NUREG-1100,
Volume 11, may be purchased from the Superintendent of Documents, U.S.
Government Printing Office, P.O. Box 37082, Washington, DC 20402-9328.
Copies are also available from the National Technical Information
Service, 5285 Port Royal Road, Springfield, VA 22161. A copy is also
available for inspection and copying for a fee in the NRC Public
Document Room, 2120 L Street NW. (Lower Level), Washington, DC 20555-
0001.
B. Other Comments
1. Public Interest Exemptions
Comment. Commenters supported NRC's decision to continue to charge
annual fees to Federal agencies and to deny their requests for
exemption based on ``public good'' claims.
Response. Consistent with the proposed rule and the comments
received, the NRC does not intend to grant public good exemptions to
Federal agencies.
2. Fee Legislation
Comment. Several commenters noted that the NRC had completed its
report on fee policy as required by the Energy Policy Act of 1992 and
that the NRC had sent a report to Congress with legislative
recommendations. The commenters commended NRC's efforts in this regard
and stated that they continue to believe that 100 percent fee recovery
for NRC, as mandated by OBRA-90, is inequitable and unfair to licensees
because licensees are paying for certain costs that are not directly
related to and do not benefit them. The commenters acknowledged that
without legislative changes to OBRA-90, the central problems with NRC's
fees cannot be completely resolved. Commenters strongly supported more
efforts to define a more equitable fee base and recommended that the
NRC continue to work with Congress and the Administration to obtain the
necessary legislative changes. In this regard, commenters stated that
it is time for NRC to actively pursue a legislative agenda with
Congress by drafting specific language to modify OBRA-90 or the Atomic
Energy Act.
Response. The need for legislation is beyond the scope of this
rulemaking proceeding. As indicated in the FY 1995 final rule (60 FR
32218; June 20, 1995), the NRC will continue to work with the Congress
to make fees more fair and equitable.
3. Reexamine the Issue of Fees
Comment. Some commenters stated that both Congress and the NRC
should reexamine the whole issue of fees in the context of the
substantial concerns of licensees regarding the trend of more states
entering into the Agreement State program. These commenters refer to
the stated intentions of Pennsylvania, Ohio, Massachusetts, and
Oklahoma to become Agreement States. The commenters indicated that the
NRC would then lose about 30 percent of the existing license base and
fees would significantly increase unless other budgeting methods are
approved or the number of FTEs is reduced in proportion to the
reduction in the number of licenses.
Commenters from the uranium recovery industry also indicated that,
as the uranium recovery industry continues to shrink in size, the
decreasing number of licensees will ultimately be charged increasing
annual fees thereby forcing more financial hardships on an already
depressed industry. Commenters state that the current system gives
preferential treatment to licensees in Agreement States. One commenter
suggested that the NRC should enter into reimbursable agreements with
the Agreement States before FY 1997, as stated in the FY 1995 final
rule. In addition, one commenter believes that NRC should assess the
Environmental Protection Agency (EPA) for NRC work such as review of
regulations promulgated by EPA relating to radionuclide emission
standards.
Response. In FY 1995, the NRC changed the methodology for
allocating those budgeted costs (about 10 percent of the NRC budget
authority) that cause fairness and equity concerns because the
legislation requested by the NRC had not been passed by the Congress
(60 FR 32218; June 20, 1995). These costs, which include the cost of
the Agreement State oversight and regulatory support to the Agreement
States, are now treated in a manner similar to overhead. These costs
are distributed based on the percentage of the budget directly
attributable to a class of licensees. Commenters at that time supported
this method of allocation as being more equitable, pending legislative
relief by Congress to remedy this inequitable situation. If additional
states become Agreement States and the NRC decides to rebaseline the
fees based on substantive changes to the budget, then any increased
cost for Agreement State oversight and regulatory support to the
Agreement States would be identified, treated similar to overhead, and
distributed based on the percentage of the budget directly attributable
to a class of licensees.
The NRC also revised its methodologies in the FY 1995 final rule
for determining annual fees for fuel facility and uranium recovery
licensees. The revised methodologies resulted in annual fees that more
accurately reflect the costs of providing regulatory services to the
subclasses of fuel facility and uranium recovery licensees. The revised
methodologies were fully explained in Section IV, Section-by-Section
Analysis, of the final FY 1995 rule (60 FR 32218; June 20, 1995).
In response to comments relative to annual fee increases as a
result of the decrease in the number of licensees, the changes adopted
in the FY 1995 final rule to stabilize fees should minimize large fee
changes as a result of decreases in licensees. This is substantiated by
this final FY 1996 rule which reduces all annual fees by the percent
change to the FY 1995 levels.
The NRC indicated in the FY 1995 proposed rule (60 FR 14672; March
20, 1995) that it planned to increase the use of reimbursable
agreements with Agreement States and Federal agencies beginning in FY
1997. To this end, the NRC has begun this process for Federal agencies.
For example, in FY 1995 the NRC entered into reimbursable agreements
with the National Aeronautics and Space Administration (NASA) for the
Cassini mission and the Department of Energy (DOE) for plutonium
disposition. Reimbursable agreements with Agreement States, however,
continue to generate strong responses, both positive and negative, on
the part of licensees and Agreement States.
With respect to the interaction between the NRC and EPA on the
promulgation of regulations, NRC interactions with EPA are an integral
part of NRC's responsibilities under the Atomic Energy Act. Therefore,
NRC must include the costs of this work in its budget and cannot
perform such work under reimbursable agreements. In addition, the
Independent Offices Appropriation Act of 1952, as amended, precludes
the NRC from charging fees to Federal agencies for specific services
rendered. While the NRC can assess annual fees to Federal agencies
holding NRC licenses, the EPA is not considered a licensee of the NRC
with respect to regulations promulgated by EPA relating to radionuclide
emission standards.
4. Fees Based on Other Factors
Comment. One commenter indicated that NRC fees should take into
consideration the competitive condition of certain markets and the
effect of fees on domestic and foreign competition. For example, the
commenter suggested that the NRC assess a small fee, such as $5.00 per
pound, on imported uranium
[[Page 16206]]
to help offset the NRC budget and that OBRA-90 be amended to include
this provision. In addition, the commenter suggested that a fee be
added to foreign Separative Work Units (SWUs) used by U.S. utilities to
enrich uranium. The commenter indicated that these fees, if levied,
would not only solve part of the NRC's financing problems, but would
also ``rejuvenate the domestic uranium mining, milling, and enrichment
businesses.'' Another commenter believes that NRC should give full
consideration to the effects of imposing significant annual fees on the
domestic uranium recovery industry particularly in light of the
Secretary of Energy's determination that the industry is non-viable and
the requirement of the Atomic Energy Act that the country maintain a
viable domestic source material industry to sustain vital national
interests.
Response. OBRA-90 requires that the fees assessed to licensees have
a reasonable relationship, to the maximum extent practicable, to the
cost of providing the service. The IOAA requires that licensing fees be
based on the cost of the services rendered. Consistent with these
requirements, the NRC assesses licensing fees for import licenses.
Basing fees on market competitive positions or assessing a $5.00 per
pound surcharge on imported uranium would not be consistent with these
statutes. The issue of adverse economic impact of fees on NRC licensees
was addressed in the FY 1991 final rule published July 10, 1991 (56 FR
31476). The NRC indicated that there will be adverse impacts from
implementing the legislation and to eliminate the adverse effects, the
annual fees would have to be eliminated or reduced. The issues of
basing fees on market competitive positions, the amount of material
possessed, the frequency of use of the material, and the size of the
facilities, were also addressed by the NRC in previous rules and in the
Regulatory Flexibility Analysis in Appendix A to the final rule
published July 10, 1991 (56 FR 31511-31513). The NRC did not adopt that
approach because it would require licensees to submit large amounts of
new data and would require additional NRC staff to evaluate the data
submitted and to develop and administer even more complex fee
schedules. The NRC continues to believe that uniformly allocating the
generic and other regulatory costs to the specific licensee within a
class to determine the amount of the annual fee is a fair, equitable,
and practical way to recover those costs and that establishing reduced
annual fees based on gross receipts (size) is the most appropriate
approach to minimize the impact on small entities. Therefore, the NRC
finds no basis for altering its approach at this time. This approach
was upheld by the D.C. Circuit in its March 16, 1993 decision in
Allied-Signal.
5. Comment
Several comments were received from uranium recovery licensees
suggesting: (1) A tiered fee system that would result in full fees for
operating facilities and reduced fees for facilities in shutdown or
standby status; (2) a licensee review board be established to review
NRC fees annually; (3) the NRC establish standards for its activities,
such as a schedule for response intervals for processing licensing
actions; and (4) 10 CFR Part 170 bills for services rendered be
itemized to show hours spent, a description of the work performed, the
names of individuals who completed the work and the dates the work was
performed.
Response. In response to a petition of rulemaking from the American
Mining Congress (now the National Mining Association) the NRC addressed
each of these comments in the Federal Register on April 28, 1995 (60 FR
20918-20922). For the reasons provided in response to the petition, the
NRC is not adopting the suggestions from the commenters in this final
rule. While denying the petition, the NRC noted that it would continue
its current practice of providing available backup data to support 10
CFR Part 170 licensing and inspection billings upon request by the
licensee or applicant.
6. Relationship Between Fees and Regulatory Services
Comment. Several commenters indicated that although they appreciate
NRC's efforts to stabilize fees, they have concerns about the lack of a
reasonable relationship between the cost to uranium recovery licensees
of NRC's regulatory program and the benefit derived from such services.
The commenters assert that the Commission cannot impose fees under the
IOAA unless there is a rational relationship between the fees and the
regulatory services provided. The commenters, citing Central & S. Motor
Freight Tariff Ass'n v. United States, 777 F.2d 722, 729 (D.C. Cir.
1985), note that in applying this IOAA requirement, the fees assessed
must be reasonably related to, and may not exceed the value of the
service to the recipient whatever the agency's cost may be. The
commenters then suggest that the NRC fee system may violate this
principle because the proposed hourly rate of $120 for services
provided by agency professionals is unduly high.
Response. The Commission believes that its IOAA fee schedule is
fully supported by applicable legal precedent and does not adopt
commenters' suggestion. In upholding the Commission's IOAA fee
schedule, the United States Court of Appeals for the Fifth Circuit held
that the NRC may recover the full cost of providing a service to an
identifiable recipient. (Emphasis in original) Mississippi Power &
Light v. NRC, 601 F.2d at 230. This is consistent with the earlier
teaching of National Cable Television Ass'n Inc. v. FCC, 554 F.2d 1094,
1106 (D.C. 1976) relied upon by the court in Central & S Motor Freight
Tariff Ass'n, supra. There the court held that fees should be a
reasonable approximation of the attributable costs which the Commission
identifies as being expended to benefit the recipient. The Court
suggested that a fee might be questionable if the fee unreasonably
exceeds the value of the specific services for which it is charged.
Here the services provided by the NRC are required for licensees to
maintain their licenses and the benefits derived therefrom. The basis
for the revised hourly rates is fully discussed in NRC's response to
comment A.3. which relate to the hourly rates being assessed by NRC
under 10 CFR Part 170. The commenters have provided virtually no
evidence that could cause the NRC to conclude that its fees
unreasonably exceed the value of the services rendered.
7. Competitive Bids by Contractors
Comment. Two commenters indicated that to control costs government
agencies routinely require competitive bids for contract labor. The
commenters stated that costs incurred by the Oak Ridge National
Laboratory (ORNL) are considered by many licensees to be excessive, yet
NRC awards contracts to ORNL on an apparently sole source basis. The
commenters suggest that NRC consider as large a pool as possible for
potential contractors including both government laboratories and
private consultants when seeking contract labor.
Response. The NRC is committed to making its regulatory programs
more efficient and effective wherever it can do so without diminishing
its ability to protect the public health and safety. The NRC follows
accepted contracting practices in all contract awards. Before
determining whether to place work with a commercial source under the
competitive proposal process or with a DOE laboratory, the NRC
considers the
[[Page 16207]]
type of work to be done, the expertise required, and the past
performance of the contractor. If the NRC determines that commercial
sources are appropriate to perform the work and that conflict of
interest can be avoided, a competitive procurement may be initiated.
Otherwise, a DOE laboratory may be selected to perform the work. Costs
are routinely considered and negotiated in either case.
Costs for particular actions are also affected by the quality of
the licensee submittal, the timeliness and quality of licensees
responses to NRC questions, delays caused by external factors, the
complexity of the site, and the degree of cooperation by the licensee
with NRC.
8. Regulatory Deficiencies
Comment. Two commenters indicated that the proposed rule has no
provision for allowing licensees to object to unreasonable costs. The
commenters stated that without such a mechanism, licensees are at the
mercy of the regulators and are expected to pay for services billed and
that there is no assurance that any given regulatory function performed
by the NRC will be completed expeditiously, efficiently, or within a
reasonable range of cost.
Response. While the NRC is committed to the expeditious review of
each application and uses all reasonable means of keeping costs as low
as feasible, its responsibility for ensuring the public health and
safety and environmental protection cannot be compromised. The NRC is
committed to the effective use of its increasingly limited resources
and therefore cannot afford to use these resources unwisely if it is to
successfully perform its mission. 10 CFR Part 170.51 of the
Commission's regulations provides the mechanism whereby licensees are
allowed to dispute a debt if they believe the debt is incorrect.
Disputed debts must be submitted in accordance with the provisions of
10 CFR Part 15.31 ``Disputed Debts.''
9. Fee Deferral Policy for Standard Plant and Early Site Reviews
Comment. One commenter urged the NRC to reestablish the NRC's
previous fee deferral policy for standard plant and early site reviews
in order to encourage the development of standardized designs and in
light of the NRC decision to issue designs to be certified through
rulemaking rather than by granting a license for the certified design.
Response. The NRC addressed this issue in the FY 1995 final rule
(60 FR 32222; June 20, 1995), indicating that the Commission decided in
its FY 1991 final fee rule that the costs for standardized reactor
design reviews, whether for domestic or foreign applicants, should be
assessed under 10 CFR Part 170 to those filing an application with the
NRC for approval or certification of a standardized design (56 FR
31478; July 10, 1991). The Commission revisited this issue as part of
its review of fee policy required by the Energy Policy Act of 1992
(EPA-92) and reconfirmed its FY 1991 decision. The NRC continues to
believe that the costs of these reviews should be assessed to advanced
reactor applicants. The NRC finds no compelling justification for
singling out these types of applications for special treatment and
shifting additional costs to operating power reactors or other NRC
licensees, and does not believe the points made by the commenter are
sufficient to change current policy.
10. Credit for Services Rendered to NRC by Licensees
Comment. One commenter stated that the company performs services
for the NRC which include training of NRC personnel, familiarization
visits for NRC staff and contractors, and NRC requested tours for
foreign and domestic dignitaries. The commenter believes that recovery
of the costs by the licensee from the NRC would be justified and
suggested that cost recovery for the licensee be implemented via
``credits'' against NRC annual fees.
Response. The annual fees assessed by the NRC are those necessary
to recover 100 percent of its budget authority. In order to give
``credits'' to licensees, the NRC would have to adjust the entire
annual fee structure for a few licensees who volunteer to assist the
NRC from time to time. Other licensees would be required to pick up the
lost sums attributable to the credits. The NRC notes that it is solely
within the discretion of the licensee to determine whether or not such
assistance should be provided to the NRC. Therefore, the NRC is not
adopting this suggestion.
11. Billing of the Office of Nuclear Regulatory Research Activities
Related to Design Certification Reviews
Comment. One commenter stated that NRC should bill design
certification applicants for the Office of Nuclear Reactor Regulation
(NRR) activities only and not bill for any activities relating to the
Office of Nuclear Regulatory Research (RES).
Response. This issue was addressed in the final FY 1995 fee rule.
After careful consideration of the comments received on the proposed
rule, the NRC indicated that beginning with the effective date of the
FY 1995 final fee rule the NRC would bill applicants for RES's direct
review and evaluation of the standard design in support of the NRC's
Final Design Approval (FDA) design certification (60 FR 14673; March
20, 1995). In the final FY 1995 fee rule, the NRC stated that it was
changing its fee policy in this area and that it will charge vendors
for only the research which is necessary to support the issuance of the
FDA or certification. Research initiated to address generic issues,
such as human factors or code development, will be included in the
annual fee assessed under 10 CFR Part 171 annual fees (60 FR 32224;
June 20, 1995). The NRC does not believe the arguments advanced by the
commenter are sufficient to warrant a change in agency policy.
III. Final Action
The NRC is amending 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 $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 $120.5 million will be recovered in FY 1996 from
fees assessed under 10 CFR Part 170 and other offsetting receipts. The
remaining $341.8 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 final changes outlined in this section, the FY 1996 annual fees for
all licensees have been reduced by 6.5 percent compared to the annual
fees assessed for FY 1995. The following examples illustrate changes in
annual fees.
------------------------------------------------------------------------
FY 1995 FY 1996
annual fee annual fee
------------------------------------------------------------------------
Class of Licensees:
Power Reactors.............................. $2,936,000 $2,746,000
Nonpower Reactors........................... 56,500 52,800
[[Page 16208]]
High Enriched Uranium Fuel Facility......... 2,569,000 2,403,000
Low Enriched Uranium Fuel Facility.......... 1,261,000 1,179,000
UF6 Conversion Facility..................... 639,200 597,800
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 continuing its streamlining of the fee structure
and process for materials licenses which began in FY 1995 and will make
other changes as discussed in Sections A and B. Among the changes will
be a change in the billing date for the annual fees imposed on many
materials licensees.
The NRC's fees for FY 1996 will become effective 60 days after
publication of the final rule in the Federal Register. The NRC will
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 will 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 will
be billed during the anniversary month of the license and payment will
be due on the date of the invoice.
A. Amendments to 10 CFR Part 170: Fees for Facilities, Materials,
Import and Export Licenses, and Other Regulatory Services
Four amendments have been made to 10 CFR Part 170. These amendments
do not change the underlying basis for the regulation--that fees be
assessed to applicants, persons, and licensees for specific
identifiable services rendered. The amendments also comply with the
guidance in the Conference Committee Report on OBRA-90 that fees
assessed under the Independent Offices Appropriation Act (IOAA) recover
the full cost to the NRC of identifiable regulatory services each
applicant or licensee receives.
First, the two professional hourly rates established in FY 1995 in
Sec. 170.20 are revised based on the FY 1996 budget. These rates are
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 has
established 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 established
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 are 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 has adjusted the current Part 170 licensing and
inspection fees in Secs. 170.21 and 170.31 for applicants and licensees
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 has
eliminated certain materials ``flat'' renewal fees in Sec. 170.31 and
has amended Sec. 170.12 accordingly. This final 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 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
final 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, are effective for FY 1996. Materials licensees who paid a
``flat'' 10 CFR Part 170 renewal fee for renewal applications filed in
FY 1996 will receive a refund for those payments, as appropriate.
Fourth, the language in Sec. 170.31, Category 15, relating to
export and import licenses, is 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 has (1) revised the two 10 CFR Part 170 hourly
rates; (2) revised the licensing fees assessed under 10 CFR Part 170 to
reflect the cost to the agency of providing the service; (3) eliminated
the materials ``flat'' renewal fees in Sec. 170.31 and amended
Sec. 170.12 accordingly; and (4) amended Category 15 in Sec. 170.31 to
make clear that fees will 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
Three amendments have been made to 10 CFR Part 171. First, the NRC
is amending 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
[[Page 16209]]
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 establishing the FY 1996 annual
fees for all licensees at a level of 6.5 percent below the FY 1995
annual fees. The 6.5 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............. 141.1 120.5
------------------
Total Annual Fee Amount............................... 362.5 341.8
------------------------------------------------------------------------
As shown in Table I, the total amount to be recovered from annual
fees in FY 1996 is $20.7M ($341.8-$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 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 its billing practices which permits the NRC 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 0.8
percent. Thus the total change in the annual fees for FY 1996 compared
to FY 1995 is a decrease of 6.5 percent (5.7 percent plus 0.8 percent).
Second, Footnote 1 of 10 CFR 171.16(d) is 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 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 will assess Sec. 171.16(d)
annual fees based on the anniversary of the date the license was
originally issued for those materials licenses whose annual fees are
less than $100,000. Accordingly, a new paragraph is 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 is June 1. The licensee will 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 will 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 will 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 final change are listed in Sec. 171.19(d) of this
final rule.
Billing certain materials licensees on the anniversary date of the
license will 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 is
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 will receive a refund for those payments,
as appropriate.
The final 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
changes are consistent with the NRC's FY 1995 final rule indicating
that, for the period FY 1996-1999, the expectation is that annual fees
will be adjusted by the percentage change (plus or minus) to the NRC's
budget authority adjusted for NRC offsetting receipts and the number of
licensees paying annual fees.
IV. Section-by-Section Analysis
The following analysis of those sections that will be amended by
this final 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 is amended to conform to the streamlining changes
being made by the NRC. Section 170.12(a), which describes application
fees, is amended to recognize that the NRC will not issue a new license
or amendment prior to receipt of the prescribed fee. Section 170.12(d),
which describes renewal fees, is amended to recognize that materials
``flat'' renewal fees are eliminated. Section 170.12(g), which
discusses inspection fees, is amended to recognize that materials
``flat'' inspection fees were eliminated in the FY 1995 final rule (60
FR 32218; June 20, 1995).
[[Page 16210]]
Section 170.20 Average Cost Per Professional Staff Hour
This section is 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 is $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 is $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 which are 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 & 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 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 revising 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
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 is 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
[[Page 16211]]
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, are 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 are 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) are
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 are
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,
is 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 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 are subject to the revised fees in this final 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, applies 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 are revised as described below.
Paragraph (d) is removed and reserved and paragraphs (a), (b), (c)(1),
(c)(2) and (e) are revised to comply with the requirement of OBRA-90
that the NRC recover approximately 100 percent of its budget for FY
1996.
Paragraph (b) is 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 are established by
reducing FY 1995 annual fees (prior to rounding) by 6.5 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) is
revised in its entirety and (c)(2) is removed and reserved.
With respect to Big Rock Point, a smaller, older reactor, the NRC
hereby grants 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, will pay an
annual fee of $2,746,000 in FY 1996.
Paragraph (d) is removed and reserved.
Paragraph (e) is revised to show the amount of the FY 1996 annual
fee for nonpower (test and research) reactors. In FY 1996, the annual
fee of $52,800 is 6.5 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 made 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 small
entity fees are shown in this final rule for convenience.
Section 171.16(d) is 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 6.5 percent.
For the first time, the NRC is combining 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
materials 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 materials licenses by five
years from the current expiration dates of those licenses. Resources
that would have otherwise been used to
[[Page 16212]]
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 will be extended by the
final rulemaking published in the Federal Register January 20, 1996 (60
FR 1109). Consistent with this change in license renewals, the NRC is,
for fee purposes, combining 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 will provide
materials licensees with simpler and more predictable NRC fee charges
as there will be no additional fees paid for periodic renewals. Because
certain materials FY 1996 annual fees will 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 will also bill annual fees for most
materials licenses on the anniversary date of the license (licensees
whose annual fees are $100,000 or more will continue to be assessed
quarterly). The annual fee assessed will be the fee in effect on the
license anniversary date. This final rule will 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 will
allow the NRC to improve the efficiency of its billing process; under
this final rule an average of approximately 500 annual fee invoices
will be sent to materials licensees each month. The current practice of
billing over 6,000 materials licensees simultaneously each fiscal year
is 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 is June 1 and
the licensee will be billed in June of each year for the annual fee in
effect on June 1. This final change to the billing system means 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 will 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 will be billed during their
anniversary month of their license. Under this final rule, some
materials licensees will 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 May 1996, the planned
effective date of the FY 1996 fee rule, will receive a bill six months
later in November 1996 (FY 1997) if November is the anniversary month
of that materials license. In this example, the licensee will pay the
same annual fee in FY 1997 (November) as he paid in FY 1996 (May).
Materials licensees will 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 will 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 will 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 this FY 1996 final rule, affected licensees will be
billed and will 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:
Materials Licenses--Annual Fee Ranges
------------------------------------------------------------------------
Category of license Annual fees
------------------------------------------------------------------------
Part 70--High enriched fuel facility. $2,403,000.
Part 70--Low enriched fuel facility.. 1,179,000.
Part 40-- UF6 conversion facility.... 597,800.
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 72,700.
Radioactive Material.
Part 72--Independent Storage of Spent 260,900.
Nuclear Fuel.
------------------------------------------------------------------------
\1\ Excludes the annual fee for a few military ``master'' materials
licenses of broad-scope issued to Government agencies, which is
$388,400.
Section 171.16(e) is 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
continue to be shown for convenience.
Footnote 1 of 10 CFR 171.16(d) is 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/
[[Page 16213]]
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) is 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 this 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 final
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) is 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) is added to cover those licensees whose annual
fees are less than $100,000 and who will 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.
V. Environmental Impact: Categorical Exclusion
The NRC has determined that this final 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 final regulation. By its very
nature, this regulatory action does not affect the environment, and
therefore, no environmental justice issues are raised.
VI. Paperwork Reduction Act Statement
This final 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 final 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 Public Law 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 final
[[Page 16214]]
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).
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.
This final rule establishes the schedules of fees that are
necessary to implement the Congressional mandate for FY 1996. The final
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 final rule.
IX. Backfit Analysis
The NRC has determined that the backfit rule, 10 CFR 50.109, does
not apply to this final rule and that a backfit analysis is not
required for this final rule. The backfit analysis is not required
because these final 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. 552 and 553,
the NRC is adopting 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 $120 per hour.
Program (Sec. 170.31 Activities).
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.
[[Page 16215]]
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
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 in-depth analysis
or review:
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.
[[Page 16216]]
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.
(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.
[[Page 16217]]
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.
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:
[[Page 16218]]
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.
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 Full Cost.
activities.
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 Full Cost.
fuel under Sec. 72.210 of this chapter.
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:
[[Page 16219]]
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 high
enriched uranium 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.
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 in-depth
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 $1,100.
241).
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.
[[Page 16220]]
\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.
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)(1), (c)(2) 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 $2,746,000. 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.............................................. $52,800
Test reactor.................................................. $52,800
* * * * *
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
[[Page 16221]]
$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 fees 1,
Category of materials licenses 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)................... $2,403,000
Nuclear Fuel Services (SNM-124)............. 2,403,000
(b) Low Enriched Uranium in Dispersable Form
Used for Fabrication of Power Reactor Fuel:
Combustion Engineering (Hematite) (SNM-33).. 1,179,000
General Electric Company (SNM-1097)......... 1,179,000
Siemens Nuclear Power (SNM-1227)............ 1,179,000
Westinghouse Electric Company (SNM-1107).... 1,179,000
(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)................. 469,200
(b) All Others:
General Electric (SNM-960).................. 318,600
B. Licenses for receipt and storage of spent fuel at
an independent spent fuel storage installation
(ISFSI)............................................ 260,900
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............. 1,200
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
1.A.(2)............................................ 2,800
E. Licenses for the operation of a uranium
enrichment facility................................ \11\ N/A
2. Source material:
A.(1) Licenses for possession and use of source
material for refining uranium mill concentrates to
uranium hexafluoride............................... 597,800
(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 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).................... 41,800
(4) 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.(2)............................... 7,400
B. Licenses which authorize only the possession, use
and/or installation of source material for
shielding.......................................... 450
C. All other source material licenses............... 8,100
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............................ 15,400
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....................................... 5,200
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. 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....................... 10,400
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. 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....................... 4,100
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)................... 2,900
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 in which the source is not
exposed for irradiation purposes................... 3,500
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 in which the source is not
exposed for irradiation purposes................... 18,100
[[Page 16222]]
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............................................ 4,600
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.................................... 8,200
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... 3,500
K. Licenses issued pursuant to Subpart B of Part 31
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............. 3,000
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...... 11,400
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.............. 5,100
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.................. 5,600
O. Licenses for possession and use of byproduct
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....................................... 13,000
P. All other specific byproduct material licenses,
except those in Categories 4A through 9D........... 1,600
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.......................... \5\ 94,300
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............................ 13,300
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......................... 7,100
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... 7,500
B. Licenses for possession and use of byproduct
material for field flooding tracer studies......... 12,200
6. Nuclear laundries:
A. Licenses for commercial collection and laundry of
items contaminated with byproduct material, source
material, or special nuclear material.............. 13,600
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. This category also includes the possession
and use of source material for shielding when
authorized on the same license..................... 9,500
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. This category also includes
the possession and use of source material for
shielding when authorized on the same license \9\.. 21,700
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. This category also includes the possession
and use of source material for shielding when
authorized on the same license \9\................. 4,300
8. Civil defense:
A. Licenses for possession and use of byproduct
material, source material, or special nuclear
material for civil defense activities.............. 1,600
9. Device, product, or sealed source safety evaluation:
A. Registrations issued for the safety evaluation of
devices or products containing byproduct material,
source material, or special nuclear material,
except reactor fuel devices, for commercial
distribution....................................... 6,700
B. Registrations issued for the 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............. 3,400
[[Page 16223]]
C. Registrations issued for the safety evaluation of
sealed sources containing byproduct material,
source material, or special nuclear material,
except reactor fuel, for commercial distribution... 1,400
D. Registrations issued for the 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..................... 720
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 plutonium air
packages....................................... \6\ N/A
Other Casks..................................... \6\ N/A
B. Approvals issued of 10 CFR Part 71 quality
assurance programs.
Users and Fabricators........................... 72,700
Users........................................... 950
11. Standardized spent fuel facilities................ \6\ N/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 CFR 72.210............................ 260,900
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................................... \7\ N/A
15. Import and Export licenses........................ \8\ N/A
16. Reciprocity....................................... \8\ N/A
17. Master materials licenses of broad scope issued to
Government agencies.................................. 388,400
18. Department of Energy:.............................
A. Certificates of Compliance................... \10\ 1,077,000
B. Uranium Mill Tailing Radiation Control Act
(UMTRCA) activities............................ 1,812,000
------------------------------------------------------------------------
\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 comment.
\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 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.
[[Page 16224]]
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 will 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, 1995, and the effective date of the FY 1996 final rule will
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 will 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 will be assessed the annual fee in effect on the
anniversary date of the license.
Dated at Rockville, Maryland, this 25th day of March, 1996.
For the Nuclear Regulatory Commission.
James M. Taylor,
Executive Director for Operations.
Appendix A to This Final 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 is using them in this FY 1996 final rule. The small entity fee
categories in Sec. 171.16(c) of this final 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
continuing these actions for FY 1996 will reduce the impact of annual
fees on small businesses. The NRC size standards are codified at 10 CFR
2.810.
Public Law 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
establishing the FY 1996 annual fees for all licensees at 6.5 percent
below the FY 1995 annual fees. The NRC believes that the 6.5 percent
downward adjustment to the FY 1995 annual fees is not a substantial
enough change to warrant establishing a new baseline for FY 1996.
The NRC is also continuing to streamline the fee structure and
process for materials licenses, efforts which
[[Page 16225]]
began in FY 1995. Two changes are being made in this area.
First, the NRC will assess annual fees for certain materials
licenses on the anniversary date of the license. Billing certain
materials licenses on the anniversary date of the license will allow
NRC to make improved efficiencies in the billing process whereby
approximately 500 annual fee invoices will 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 is 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 further streamlining the materials fee program
and improving the predictability of fees by eliminating the materials
``flat'' renewal fees in Sec. 170.31. This 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 explaining this initiative in the Federal Register on
September 8, 1995, (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 the 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
[[Page 16226]]
(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 final 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.
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 final rule for FY 1996.
[FR Doc. 96-9026 Filed 4-11-96; 8:45 am]
BILLING CODE 7590-01-P
