98-8279. Revision of Fee Schedules; 100% Fee Recovery, FY 1998  

  • [Federal Register Volume 63, Number 62 (Wednesday, April 1, 1998)]
    [Proposed Rules]
    [Pages 16046-16067]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-8279]
    
    
    
    [[Page 16045]]
    
    _______________________________________________________________________
    
    Part VIII
    
    
    
    
    
    Nuclear Regulatory Commission
    
    
    
    
    
    _______________________________________________________________________
    
    
    
    10 CFR Parts 2, 140, 170 and 171
    
    
    
    Revision of Fee Schedules; 100% Fee Recovery, FY 1998; Proposed Rule
    
    Federal Register/Vol. 63, No. 62/Wednesday, April 1, 1998/Proposed 
    Rules
    
    [[Page 16046]]
    
    
    
    NUCLEAR REGULATORY COMMISSION
    
    10 CFR Parts 2, 140, 170 and 171
    
    RIN 3150-AF 83
    
    
    Revision of Fee Schedules; 100% Fee Recovery, FY 1998
    
    AGENCY: Nuclear Regulatory Commission.
    
    ACTION: Proposed rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: The Nuclear Regulatory Commission (NRC) is proposing to amend 
    the licensing, inspection, and annual fees charged to its applicants 
    and licensees. The proposed amendments are necessary to implement the 
    Omnibus Budget Reconciliation Act of 1990 (OBRA-90), which mandates 
    that the NRC recover approximately 100 percent of its budget authority 
    in Fiscal Year (FY) 1998, less amounts appropriated from the Nuclear 
    Waste Fund (NWF). The amount to be recovered for FY 1998 is 
    approximately $454.8 million. The NRC is also proposing to provide 
    additional payment methods for civil penalties and indemnity fees, as 
    well as annual and licensing fees.
    
    DATES: The comment period expires May 1, 1998. Comments received after 
    this date will be considered if it is practical to do so, but the NRC 
    is able to ensure only that comments received on or before this date 
    will be considered. Because OBRA-90 requires that NRC collect the FY 
    1998 fees by September 30, 1998, requests for extensions of the comment 
    period will not be granted.
    
    ADDRESSES: Mail written comments to: Secretary, U.S. Nuclear Regulatory 
    Commission, Washington, DC 20555-0001, ATTN: Rulemakings and 
    Adjudications Staff. Hand deliver comments to: 11555 Rockville Pike, 
    Rockville, Maryland 20852, between 7:30 am and 4:15 pm Federal 
    workdays. (Telephone 301-415-1678). Comments may also be submitted via 
    the NRC's interactive rulemaking website through the NRC home page 
    (http://www.nrc.gov). From the NRC homepage, select ``Rulemaking'' from 
    the tool bar. The interactive rulemaking website can then be accessed 
    by selecting ``New Rulemaking Website''. This site provides the 
    availability to upload comments as files (any format), if your web 
    browser supports that function. For information about the interactive 
    rulemaking site, contact Ms. Carol Gallagher, 301-415-5905; e-mail 
    [email protected]
        Copies of comments received and the agency workpapers that support 
    these proposed changes to 10 CFR Parts 170 and 171 may be examined at 
    the NRC Public Document Room, 2120 L Street NW. (Lower Level), 
    Washington, DC 20555-0001. Comments received may also be viewed and 
    downloaded electronically via the interactive rulemaking website 
    established by the NRC for this rulemaking.
    
    FOR FURTHER INFORMATION CONTACT: Glenda Jackson, Office of the Chief 
    Financial Officer, U.S. Nuclear Regulatory Commission, Washington, DC 
    20555-0001, Telephone 301-415-6057.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background.
    II. Proposed Action.
    III. Section-by-Section Analysis.
    IV. Environmental Impact: Categorical Exclusion.
    V. Paperwork Reduction Act Statement.
    VI. Regulatory Analysis.
    VII. Regulatory Flexibility Analysis.
    VIII. 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 at 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 April 12, 1996 (61 FR 16203), 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 1996, less the appropriation received from the Nuclear Waste 
    Fund. Several changes to the fees assessed for FY 1996 were adopted by 
    the NRC. These changes were highlighted in this final rule (61 FR 
    16203; April 12, 1996) and bear on the approach for establishing annual 
    fees set forth in this proposed rule.
    
    II. Proposed Action
    
        The NRC is proposing to amend its licensing, inspection, and annual 
    fees to recover approximately 100 percent of its FY 1998 budget 
    authority, including the budget authority for its Office of the 
    Inspector General, less the appropriations received from the NWF and 
    the General Fund. For FY 1998, the NRC's budget authority is $472.8 
    million, of which $15.0 million has been appropriated from the NWF. In 
    addition, $3.0 million has been appropriated from the General Fund for 
    activities related to commercial vitrification of waste stored at the 
    Department of Energy Hanford, Washington site, and for the pilot 
    program for the external regulation of the Department of Energy. The FY 
    1998 appropriation language states that the $3.0 million appropriated 
    for regulatory reviews and other activities pertaining to waste stored 
    at the Hanford, Washington site and activities associated with the 
    pilot program for external regulation of the Department of Energy shall 
    be excluded from license fee revenues notwithstanding 42 U.S.C. 2214. 
    Therefore, NRC is required to collect approximately $454.8 million in 
    FY 1998 through 10 CFR Part 170 licensing and inspection fees and 10 
    CFR Part 171 annual fees.
        The total amount to be recovered in fees for FY 1998 is $7.5 
    million less than the amount estimated for recovery for FY 1997. The 
    NRC estimates that approximately $94.6 million will be recovered in FY 
    1998 from fees assessed under 10 CFR Part 170 and other receipts, 
    compared to $95.2 million in FY 1997. The remaining $360.2 million 
    would be recovered in FY 1998 through the 10 CFR Part 171 annual fees. 
    The total amount to be recovered through annual fees in FY 1998 is 
    approximately $6.4 million less than in FY 1997.
        In addition to the decrease in the total amount to be recovered 
    through annual fees and the slight reduction in the estimated amount to 
    be recovered in 10 CFR Part 170 fees, the number of licensees paying 
    annual fees in FY 1998 has decreased compared to FY 1997. For example, 
    Commonwealth Edison has notified the NRC that the Zion Station Units 1 
    and 2 ceased operations on February 13, 1998. In addition, both the 
    Haddam Neck Plant and the Maine Yankee Plant ceased operations during 
    FY 1997 and therefore are not subject to the FY 1998 annual fees. This 
    is equivalent to a reduction of 2.5 power
    
    [[Page 16047]]
    
    reactors subject to the FY 1998 annual fees compared to FY 1997. The 
    Big Rock Point Plant, a small older reactor historically granted a 
    partial exemption from the annual fee, also ceased operations in FY 
    1997 and is no longer subject to annual fees.
        As a result of these changes, the proposed FY 1998 annual fees 
    would increase slightly, by 0.1 percent, compared to the FY 1997 actual 
    (prior to rounding) annual fees. Because this is a slight increase, 
    after rounding the proposed FY 1998 annual fees for many fee categories 
    are the same as the final (rounded) FY 1997 annual fees. The change to 
    the annual fees is described in more detail in Section B. The following 
    examples illustrate the changes in annual fees:
    
    ------------------------------------------------------------------------
                                                                  FY 1998   
                                                  FY 1997        proposed   
                                                annual fee      annual fee  
    ------------------------------------------------------------------------
    Class of Licensees:                                                     
        Power Reactors......................      $2,978,000      $2,980,000
        Nonpower Reactors...................          57,300          57,300
        High Enriched Uranium Fuel Facility.       2,606,000       2,607,000
        Low Enriched Uranium Fuel Facility..       1,279,000       1,280,000
        UF6 Conversion Facility.............         648,000         649,000
        Uranium Mills.......................          61,800          61,800
    Typical Materials Licenses:                                             
        Radiographers.......................          14,100          14,100
        Well Loggers........................           8,200           8,200
        Gauge Users.........................           1,700           1,700
        Broad Scope Medical.................          23,500          23,500
    ------------------------------------------------------------------------
    
        Because the final FY 1998 fee rule will be a ``major'' final action 
    as defined by the Small Business Regulatory Enforcement Fairness Act of 
    1996, the NRC's fees for FY 1998 would become effective 60 days after 
    publication of the final rule in the Federal Register. The NRC will 
    send an invoice for the amount of the annual fee upon publication of 
    the FY 1998 final rule to reactors and major fuel cycle facilities. For 
    these licensees, payment would be due on the effective date of the FY 
    1998 rule. Those materials licensees whose license anniversary date 
    during FY 1998 falls before the effective date of the final FY 1998 
    final rule would be billed during the anniversary month of the license 
    and continue to pay annual fees at the FY 1997 rate in FY 1998. Those 
    materials licensees whose license anniversary date falls on or after 
    the effective date of the final FY 1998 final rule would be billed at 
    the FY 1998 revised rates during the anniversary month of the license 
    and payment would be due on the date of the invoice.
        The NRC is announcing here that it plans to discontinue mailing the 
    final rule to all licensees. In addition to publication in the Federal 
    Register, the final rule will be available on the internet at http://
    ruleforum.llnl.gov/.
        Copies of the final rule will be mailed upon request. To obtain a 
    copy of the final rule, contact the License Fee and Accounts Receivable 
    Branch, Division of Accounting and Finance, Office of the Chief 
    Financial Officer, at 301-415-7554. As a matter of courtesy, the NRC 
    plans to continue to send the proposed rule to all licensees.
        The NRC is also announcing here that it plans to reexamine the 
    current annual fee exemption policy for licensees in decommissioning or 
    holding possession only licenses and the annual fee policy for 
    reactors' storage of spent fuel. Any changes to the current fee 
    policies will be included in the FY 1999 fee rulemaking. One purpose of 
    the study is to assure consistent fee treatment for both wet storage 
    (i.e., spent fuel pool) and dry storage (i.e., independent spent fuel 
    storage installations, or ISFSIs) of spent fuel. The Commission has 
    previously determined that both storage options are considered safe and 
    acceptable forms of storage for spent fuel. Under current fee 
    regulations, Part 50 licensees in decommissioning who store spent fuel 
    in the spent fuel pool are not assessed an annual fee, but licensees 
    who store spent fuel in an ISFSI under Part 72 are assessed an annual 
    fee. The NRC will review this policy as part of the overall study of 
    the issues related to annual fees for licensees in decommissioning.
        The NRC is also proposing to make other changes to 10 CFR Parts 170 
    and 171 as discussed in Sections A. and B. below:
    
    A. Amendments to 10 CFR Part 170: Fees for Facilities, Materials, 
    Import and Export Licenses, and Other Regulatory Services
    
        The NRC proposes four amendments to 10 CFR Part 170. These 
    amendments would 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 
    that each applicant or licensee receives.
        First, the NRC proposes to revise Sec. 170.12(g) to include the 
    following for cost recovery:
        (1) Full-cost recovery for resident inspectors.
        Currently, resident inspectors' time is billed to the site to which 
    they are assigned only if the time is reported to a specific inspection 
    report number. The remaining costs related to the resident inspector 
    are recovered in the annual fees assessed to all licensees in the 
    class. Because the assignment of a resident inspector to a site is an 
    identifiable service to a specific licensee, the NRC is proposing that 
    all of the resident inspectors' official duty time (i.e., excluding 
    leave) be billed to the specific licensee under Part 170. This change 
    would be applicable to all classes of licensees having resident 
    inspectors.
        (2) Costs expended within 30 days after the issuance of an 
    inspection report.
        Section 170.12 (g) provides that costs will be assessed for 
    completed inspections. Currently, for fee recovery purposes, an 
    inspection is considered to be completed when the inspection report is 
    issued. The result is that costs expended after the report is sent are 
    recovered through the annual fees imposed on all licensees in that 
    class.
        Activities that occur after the inspection report is issued, such 
    as follow-up on the inspection findings, are identifiable services for 
    specific licensees. Therefore, NRC proposes to assess Part 170 fees for 
    these services.
    
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    However, in order to establish a clear interval during which 
    accumulated costs would be billed, the proposed change to Part 170 
    would recover costs from the specific licensee for activities that 
    occur within 30 days after the issuance of the inspection report. This 
    change would result in recovery of 80 percent of these accumulated 
    costs under Part 170, and would continue to provide applicants and 
    licensees with a definitive point at which billing would cease.
        Second, the NRC proposes to revise Sec. 170.12(h) to include credit 
    cards as an additional method of payment, and to provide additional 
    information on electronic payments. Credit card payments would be 
    accepted for small dollar payments. Electronic payments may be made by 
    Fedwire (a funds transfer system operated by the Federal Reserve 
    System) or by Automated Clearing House (ACH). ACH is a nationwide 
    processing and delivery facility that provides for the distribution and 
    settlement of electronic financial transactions. Electronic payment 
    will not only expedite the payment process, but will also save 
    applicants and licensees considerable time and money over a paper-based 
    payment system.
        Third, the NRC proposes that the two professional hourly rates 
    established in FY 1997 in Sec. 170.20 be revised based on the FY 1998 
    budget. These proposed rates would be based on the FY 1998 direct FTEs 
    and the FY 1998 budget excluding direct program support and the 
    appropriation from the NWF or the General Fund. These rates are used to 
    determine the Part 170 fees. The NRC is proposing to establish a rate 
    of $124 per hour ($219,901 per direct FTE) for the reactor program. 
    This rate would be applicable to all activities for which fees are 
    based on full cost under Sec. 170.21 of the fee regulations. A second 
    rate of $121 per hour ($214,185 per direct FTE) is proposed for the 
    nuclear materials and nuclear waste program. This rate would be 
    applicable to all materials activities for which fees are based on full 
    cost under Sec. 170.31 of the fee regulations. In the FY 1997 final fee 
    rule, these rates were $131 and $125, respectively. The decrease in the 
    hourly rates is primarily due to a change in application of the types 
    of costs included in the hourly rates. Previously, the hourly rates 
    were determined based on the premise that surcharge costs should be 
    shared by those paying Part 170 fees for services as well as those 
    paying Part 171 annual fees. The proposed hourly rates have been 
    determined based on the principle that the surcharge costs are more 
    appropriately included only in the Part 171 annual fee.
        In addition, Section Chiefs are included as overhead in the 
    calculation of the proposed FY 1998 hourly rates, and any specific 
    Section Chief effort expended for reviews and inspections will not be 
    billed to the applicant or licensee. Previously, the Section Chiefs' 
    time for specific licensing and inspection activities were directly 
    billed under Part 170 to the applicant or licensee. This change is 
    consistent with the current budget structure which includes Section 
    Chiefs as overhead.
        Fourth, the NRC proposes to adjust the current Part 170 licensing 
    fees in Secs. 170.21 and 170.31 to reflect the revised hourly rates.
        In summary, the NRC is proposing to:
        (1) Assess Part 170 fees to recover costs for all of the resident 
    inspectors' official duty time (i.e, excluding leave) and costs 
    incurred within 30 days after issuance of an inspection report.
        (2) Offer additional payment methods for 10 CFR Part 170 fees.
        (3) Revise the two 10 CFR Part 170 hourly rates.
        (4) Revise the licensing (application and amendment) fees assessed 
    under 10 CFR Part 170 to reflect the revised hourly rates.
        Although not a specific change to Part 170, the NRC also is 
    announcing plans to change the current policy with regard to fees for 
    activities performed during overtime. Currently only work performed 
    during regular hours is billed to the applicants and licensees. To more 
    fully recover costs under Part 170, the NRC plans to assess Part 170 
    fees for compensated overtime hours expended for activities covered by 
    Part 170, such as reviews of applications, inspections, Part 55 exams, 
    and special projects. The compensated overtime hours will be billed at 
    the normal hourly rate.
        In addition, the NRC is also announcing plans to bill for 
    accumulated inspection costs prior to issuance of the inspection report 
    under certain circumstances. Currently, as provided in 10 CFR 
    170.12(g), inspection costs are billed only after the inspection is 
    completed, i.e, when the inspection report is issued. As a result, in 
    some cases inspection costs accumulate over several billing cycles, and 
    the licensee receives one invoice for these accumulated costs rather 
    than being billed as the costs are expended. However, NRC plans to 
    progress bill for inspections in selected cases where it is determined 
    that such billing would be in the best interest of the agency and the 
    licensee. If it is determined that the accumulated costs warrant an 
    exception to the billing method currently provided in 10 CFR 170.12(g), 
    NRC will coordinate with the licensee to establish a mutually agreeable 
    billing schedule and will issue an invoice for inspection costs that 
    have accumulated.
        The NRC is developing a system that will accommodate routine 
    billing for accumulated inspection costs at a specified interval. Once 
    that system is available, the NRC intends to progress bill for all 
    inspections. The staff is seeking early comment on the long-term policy 
    in this FY 1998 proposed rule. The necessary revision to 10 CFR 170 
    would be made in future rulemaking when the system is available to 
    accomplish this.
    
    B. Amendments to 10 CFR Part 171: Annual Fees for Reactor Operating 
    Licenses, and Fuel Cycle Licenses and Materials Licenses, Including 
    Holders of Certificates of Compliance, Registrations, and Quality 
    Assurance Program Approvals and Government Agencies Licensed by NRC
    
        The NRC proposes four amendments to 10 CFR Part 171.
        First, the NRC proposes to amend Sec. 171.13 to delete specific 
    fiscal year references.
        Second, the NRC proposes to amend Secs. 171.15 and 171.16 to revise 
    the annual fees for FY 1998 to recover approximately 100 percent of the 
    FY 1998 budget authority, less fees collected under 10 CFR Part 170 and 
    funds appropriated from the NWF and the General Fund. In the FY 1995 
    final rule, the NRC stated that it would stabilize annual fees as 
    follows. Beginning in FY 1996, the NRC would adjust the annual fees 
    only by the percentage change (plus or minus) in NRC's total budget 
    authority unless there was a substantial change in the total NRC budget 
    authority or the magnitude of the budget allocated to a specific class 
    of licensees. If either case occurred, the annual fee base would be 
    recalculated (60 FR 32225; June 20, 1995). The NRC also indicated that 
    the percentage change would be adjusted based on changes in 10 CFR Part 
    170 fees and other adjustments as well as on the number of licensees 
    paying the fees.
        In the FY 1996 final rule, the NRC stabilized the annual fees by 
    establishing the annual fees for all licensees at a level of 6.5 
    percent below the FY 1995 annual fees. For FY 1997, the NRC followed 
    the same method as used in FY 1996. Because the amount to be recovered 
    through fees for FY 1997 was identical to the amount to be recovered in 
    FY 1996, establishing new baseline fees was not warranted for FY 1997. 
    Based on a change in the distribution between Parts 170 and 171
    
    [[Page 16049]]
    
    fees, a reduction in the amount of the budget recovered for 10 CFR Part 
    170 fees, a reduction in other offsetting adjustments, and a reduction 
    in the number of licensees paying annual fees, the FY 1997 annual fees 
    for all licensees increased 8.4 percent compared to the FY 1996 annual 
    fees. In addition, beginning in FY 1997, the NRC made an adjustment to 
    recognize that all fees billed in a fiscal year are not collected in 
    that year.
        As indicated in the FY 1995 final rule, because there has not been 
    a substantial change in the NRC budget or in the magnitude of a 
    specific budget allocation to a class of licensees, the NRC intends to 
    continue to stabilize annual fees by following the same method used for 
    FY 1996 and FY 1997 to establish the FY 1998 annual fees.
        The FY 1998 amount to be recovered through fees is approximately 
    $454.8 million, which is $7.5 million less than in FY 1997. The 
    estimated amount to be recovered in 10 CFR Part 170 fees is $94.6 
    million, compared to $95.2 million for FY 1997. Due largely to the 
    adjustment for the reduced number of licensees paying annual fees, the 
    10 CFR Part 171 annual fees must increase slightly in FY 1998 compared 
    to FY 1997 in order to recover 100 percent of the budget. The reduced 
    number of licensees paying annual fees is primarily the result of the 
    equivalent of 2.5 fewer power reactors subject to annual fees in FY 
    1998. In addition, for FY 1998 there is a reduction of approximately 
    200 transportation quality assurance approvals as a result of the 
    rulemaking in 1997 that combined these approvals with the Part 34 
    radiography licenses.
        The FY 1998 annual fees for all licensees would be established at a 
    level of 0.1 percent above the FY 1997 actual (prior to rounding) 
    annual fees. The NRC notes that this increase is less than the 2.7 
    percent inflation factor used by the Office of Management and Budget 
    for the FY 1998 budget. Based on the small change, the rounded FY 1998 
    annual fee for many fee categories is the same as the final (rounded) 
    FY 1997 annual fee. Therefore, for many licensees, the proposed annual 
    fee for FY 1998 is the same as the FY 1997 annual fee. Table I shows 
    the total budget and amounts of fees for FY 1997 and FY 1998.
    
      Table I.--Calculation of the Percentage Change to the FY 1997 Annual  
                                      Fees                                  
                              [Dollars in Millions]                         
    ------------------------------------------------------------------------
                                                           FY97       FY98  
    ------------------------------------------------------------------------
    Total Budget......................................     $476.8     $472.8
      Less NWF........................................      -11.0      -15.0
      Less General Fund (Hanford Tanks, Pilot for                           
       Regulation of DOE).............................       -3.5       -3.0
                                                       ---------------------
    Total Fee Base....................................      462.3      454.8
      Less Part 170 Fees..............................       95.2       94.6
      Less other receipts.............................  .........  .........
    Part 171 Fee Collections Required.................      367.1      360.2
    Part 171 Billing Adjustment1:                                           
      Small Entity Allowance..........................        5.0        5.8
      Unpaid FY 1997 invoices.........................        3.0        3.9
      Payments from prior year invoices...............       -2.0       -3.2
                                                       ---------------------
        Subtotal......................................        6.0        6.5
                                                       =====================
        Total Part 171 Billing........................      373.1     366.7 
    ------------------------------------------------------------------------
    1These adjustments are necessary to ensure that the ``billed'' amount   
      results in the required collections. Positive amounts indicate amounts
      billed that will not be collected in FY 1998.                         
    
        Third, Footnote 1 of 10 CFR 171.16(d) would be amended to provide 
    for a waiver of annual fees for FY 1998 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, 1997, and 
    permanently ceased licensed activities entirely by September 30, 1997. 
    All other licensees and approval holders who held a license or approval 
    on October 1, 1997, are subject to FY 1998 annual fees. This change is 
    being made in recognition of the fact that since the final FY 1997 rule 
    was published in May 1997, 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 1997 
    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 requests before the end of the fiscal 
    year on September 30, 1997. Similar situations existed after the FY 
    1991-1996 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.
        Fourth, Sec. 171.19 would be amended to update fiscal year 
    references and to credit the partial payments made by certain licensees 
    in FY 1998 either toward their total annual fee to be assessed or to 
    make refunds, if necessary. Section 171.19(a) would also be amended to 
    provide credit cards as an additional method of payment, and to provide 
    additional information on electronic payments. Credit card payments 
    would be accepted for small dollar payments. Electronic payments may be 
    made by Fedwire (a funds transfer system operated by the Federal 
    Reserve System) or by Automated Clearing House (ACH). ACH is a 
    nationwide processing and delivery facility that provides for the 
    distribution and settlement of electronic financial transactions. 
    Electronic payments will not only expedite the payment process, but 
    will also save applicants and licensees considerable time and money 
    over a paper-based payment system.
        The NRC will send an invoice to reactors and major fuel cycle 
    facilities for the amount of the annual fee upon publication of the FY 
    1998 final rule. For these licensees, payment will be due on the 
    effective date of FY 1998 rule. Those materials licensees whose license 
    anniversary date during FY 1998 falls before the effective date of the 
    final FY 1998 rule will be billed during the anniversary month of the 
    license and continue to pay annual fees at the FY 1997 rate in FY 1998. 
    Those materials licensees whose license anniversary date falls on or 
    after the effective date of the final FY 1998 rule would be billed, at 
    the FY 1998 revised rates, during the anniversary month of the license 
    and payment would be due on the date of the invoice.
        The proposed amendments to 10 CFR Part 171 do not change the 
    underlying basis for 10 CFR Part 171; that is, charging a class of 
    licensees for NRC costs attributable to that class of licensees. The 
    proposed changes are consistent with the NRC's FY 1995 final rule 
    indicating that, for the period FY 1996-1999, the expectation is that 
    annual fees would 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.
        In addition to the amendment to 10 CFR Parts 170 and 171, the NRC 
    is proposing conforming amendments to 10 CFR Parts 2 and 140 to include 
    the additional methods of payments provided in 10 CFR Parts 170 and 
    171.
    
    [[Page 16050]]
    
    III. Section-by-Section Analysis
    
        The following analysis of those sections that would be amended by 
    this proposed rule provides additional explanatory information. All 
    references are to Title 10, Chapter I, U.S. Code of Federal 
    Regulations.
    
    Part 2
    
    Section 2.205  Civil Penalties
    
        Paragraph 2.205(i) would be revised to provide additional methods 
    of payment, such as Automated Clearing House and credit cards, and to 
    clarify that payments are to be made in U.S. funds to the U.S. Nuclear 
    Regulatory Commission.
    
    Part 140
    
    Section 140.7  Fees
    
        Paragraphs (a)(5) and (c) would be revised to delete references to 
    payment instructions. A new paragraph (d) would be added to provide 
    payment instructions, including clarification that payments are to be 
    made in U.S. funds to the U.S. Nuclear Regulatory Commission and to 
    provide additional methods of payments, such as Automated Clearing 
    House and credit cards.
    
    Part 170
    
    Section 170.12  Payment of Fees
    
        Paragraph (g) would be revised to indicate that costs incurred 
    within 30 days after the inspection report is issued will be billed to 
    the specific licensees, and that inspection fees will be assessed for 
    each assigned resident inspector based on the number of hours the 
    assigned resident inspector(s) is in an official duty status (i.e., 
    excluding leave).
        Paragraph (h) would be revised to provide additional methods of 
    payment for fees assessed under 10 CFR 170 and to clarify that payment 
    should be made in U.S. funds.
    
    Section 170.20  Average Cost per Professional Staff-Hour
    
        This section would be amended to establish two professional staff-
    hour rates based on FY 1998 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 1998 for all 
    activities whose fees are based on full cost under Sec. 170.21 would be 
    $124 per hour, or $219,901 per direct FTE. The NRC nuclear material and 
    nuclear waste direct staff-hour rate for all materials activities whose 
    fees are based on full cost under Sec. 170.31 would be $121 per hour, 
    or $214,185 per direct FTE. The rates are based on the FY 1998 direct 
    FTEs and NRC budgeted costs that are not recovered through the 
    appropriation from the NWF or the General Fund. 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 1998 Budget Authority To Be Included in Hourly Rates   
                              [Dollars in millions]                         
    ------------------------------------------------------------------------
                                                      Reactor     Materials 
                                                      program      program  
    ------------------------------------------------------------------------
    Direct Program Salaries & Benefits............       $103.9        $20.5
    Overhead Salaries & Benefits, Program Travel                            
     and Other Support............................         55.3        $14.8
    Allocated Agency Management and Support.......        101.7        $22.0
                                                   -------------------------
        Subtotal..................................        260.9        $57.3
                                                   -------------------------
    Less offsetting receipts......................                          
        Total Budget Included in Hourly Rate......       $260.9        $57.3
                                                   -------------------------
    Program Direct FTEs...........................      1,186.4        267.3
    Rate per Direct FTE...........................     $219,901     $214,185
    Professional Hourly Rate (Rate per direct FTE                           
     divided by 1,776 hours)......................          124          121
    ------------------------------------------------------------------------
    
        Dividing the $260.9 million (rounded) budget for the reactor 
    program by the reactor program direct FTEs (1,186.4) results in a rate 
    for the reactor program of $219,901 per FTE for FY 1998. Dividing the 
    $57.3 million (rounded) budget for the nuclear materials and nuclear 
    waste program by the program direct FTEs (267.3) results in a rate of 
    $214,185 per FTE for FY 1998. The Direct FTE Hourly Rate for the 
    reactor program would be $124 per hour (rounded to the nearest whole 
    dollar). This rate is calculated by dividing the cost per direct FTE 
    ($219,901) by the number of productive hours in one year (1,776 hours) 
    as indicated in the revised OMB Circular A-76, ``Performance of 
    Commercial Activities.'' The Direct FTE Hourly Rate for the materials 
    program would be $121 per hour (rounded to the nearest whole dollar). 
    This rate is calculated by dividing the cost per direct FTE ($214,185) 
    by the number of productive hours in one year (1,776 hours).
        The proposed FY 1998 hourly rates are slightly lower than the FY 
    1997 rates. The decrease in the hourly rates is primarily due to a 
    change in application of the types of costs included in the hourly 
    rates. Previously, the hourly rates were determined based on the 
    premise that surcharge costs should be shared by those paying Part 170 
    fees for services as well as those
    
    [[Page 16051]]
    
    paying Part 171 annual fees. The proposed hourly rates have been 
    determined based on the principle that the surcharge costs are more 
    appropriately included only in the Part 171 annual fee.
    
    Section 170.21  Schedule of Fees for Production and Utilization 
    Facilities, Review of Standard Reference Design Approvals, Special 
    Projects, Inspections and Import and Export Licenses
    
        The NRC is proposing to revise the licensing and inspection fees in 
    this section, which are based on full-cost recovery, to reflect FY 1998 
    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 1998 hourly 
    rate for the reactor program, as shown in Sec. 170.20. The fees in 
    Sec. 170.21 for the review of import and export licensing, facility 
    Category K, would be adjusted for FY 1998 to reflect the revised hourly 
    rate.
    
    Section 170.31  Schedule of Fees for Materials Licenses and Other 
    Regulatory Services, Including Inspections and Import and Export 
    Licenses
    
        The licensing and inspection fees in this section, which are based 
    on full-cost recovery, would be modified to recover the FY 1998 costs 
    incurred by the NRC in providing licensing and inspection services to 
    identifiable recipients. The fees assessed for services provided under 
    the schedule would be based on both the professional hourly rate as 
    shown in Sec. 170.20 for the materials program and any direct program 
    support (contractual services) costs expended by the NRC. Licensing 
    fees based on the average time to review an application (``flat'' fees) 
    would be adjusted to reflect the decrease in the professional hourly 
    rate from $125 per hour in FY 1997 to $121 per hour in FY 1998.
        The amounts of the materials licensing ``flat'' fees were rounded 
    so that the amounts would be de minimis and the resulting flat fee 
    would be convenient to the user. Fees under $1,000 are rounded to the 
    nearest $10. Fees that are greater than $1,000 but less than $100,000 
    are rounded to the nearest $100. Fees that are greater than $100,000 
    are rounded to the nearest $1,000.
        The proposed licensing ``flat'' fees are applicable to fee 
    categories 1.C and 1.D; 2.B and 2.C; 3.A through 3.P; 4.B through 9.D, 
    10.B, 15.A through 15.E and 16. Applications filed on or after the 
    effective date of the final rule would be subject to the revised fees 
    in this proposed rule.
        For those licensing, inspection, and review fees that are based on 
    full-cost recovery (cost for professional staff hours plus any 
    contractual services), the proposed materials program hourly rate of 
    $121, as shown in Sec. 170.20, would apply to those professional staff 
    hours expended on or after the effective date of the final rule.
    
    Part 171
    
    Section 171.13  Notice
    
        The language in this section would be revised to delete specific 
    fiscal year references.
    
    Section 171.15  Annual Fee: Reactor Operating Licenses
    
        The annual fees in this section would be revised as described 
    below.
        Paragraphs (b), (c)(1), (c)(2), (e) and (f) would be revised to 
    comply with the requirement of OBRA-90 that the NRC recover 
    approximately 100 percent of its budget for FY 1998.
        Paragraph (b) would be revised in its entirety to establish the FY 
    1998 annual fee for operating power reactors and to change fiscal year 
    references from FY 1997 to FY 1998. The fees would be established by 
    increasing FY 1997 annual fees (prior to rounding) by 0.1 percent. In 
    the FY 1995 final rule, the NRC stated it would stabilize annual fees 
    by adjusting the annual fees only by the percentage change (plus or 
    minus) in NRC's total budget authority and adjustments based on changes 
    in 10 CFR Part 170 fees as well as in the number of licensees paying 
    the fees. The activities comprising the base FY 1995 annual fee and the 
    FY 1995 additional charge (surcharge) are listed in paragraphs (b) and 
    (c) for convenience purposes.
        Each operating power reactor would pay an annual fee of $2,980,000 
    in FY 1998.
        Paragraph (e) would be revised to show the amount of the FY 1998 
    annual fee for nonpower (test and research) reactors. The 1998 proposed 
    fee of $57,300 is the same as the FY 1997 annual fee. 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(a)(2).
        Paragraph (f) would be revised to change fiscal year date 
    references.
    
    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. 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 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 annual fee of $1,800. A second or lower-
    tier small entity fee of $400 is in place for small entities with gross 
    annual receipts of less than $350,000 and small governmental 
    jurisdictions with a population of less than 20,000. No change in the 
    amount of the small entity fees is being proposed because the small 
    entity fees are not based on budgeted costs but are established at a 
    level to reduce the impact of fees on small entities. The small entity 
    fees are shown in the proposed rule for convenience.
        Section 171.16(d) would be revised to establish the FY 1998 annual 
    fees for materials licensees, including Government agencies, licensed 
    by the NRC. The proposed annual fees were determined by increasing the 
    FY 1997 annual fees (prior to rounding) by 0.1 percent. After rounding, 
    many of the FY 1998 annual fees for materials licensees are the same as 
    the FY 1997 annual fees.
        The amount or range of the proposed FY 1998 annual fees for 
    materials licenses is summarized as follows:
    
                      Materials Licenses--Annual Fee Ranges                 
    ------------------------------------------------------------------------
             Category of license                      Annual fees           
    ------------------------------------------------------------------------
    Part 70--High enriched fuel facility.  $2,607,000                       
    Part 70--Low enriched fuel facility..  $1,280,000                       
    Part 40--UF6 conversion facility.....  $649,000                         
    Part 40--Uranium recovery facilities.  $22,300 to $61,800               
    Part 30--Byproduct Material Licenses.  $490 to $23,500\1\               
    Part 71--Transportation of             1,000 to $78,900                 
     Radioactive Material.                                                  
    
    [[Page 16052]]
    
                                                                            
    Part 72--Independent Storage of Spent  $283,000                         
     Nuclear Fuel.                                                          
    ------------------------------------------------------------------------
    \1\ Excludes the annual fee for a few military ``master'' materials     
      licenses of broad-scope issued to Government agencies, which is       
      $421,000.                                                             
    
        Footnote 1 of 10 CFR 171.16(d) would be amended to provide a waiver 
    of the annual fees for materials licensees, and holders of 
    certificates, registrations, and approvals, who either filed for 
    termination of their licenses or approvals or filed for possession 
    only/storage only licenses before October 1, 1997, and permanently 
    ceased licensed activities entirely by September 30, 1997. All other 
    licensees and approval holders who held a license or approval on 
    October 1, 1997, are subject to the FY 1998 annual fees.
        Holders of new licenses issued during FY 1998 would be subject to 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 in effect on the anniversary date of the license. 
    New materials licenses issued on or after April 1, 1998, will not be 
    assessed an annual fee for FY 1998. Thereafter, the full annual fee is 
    due and payable each subsequent fiscal year on the anniversary date of 
    the license. Beginning June 11, 1996, (the effective date of the FY 
    1996 final rule), affected materials licensees are subject to the 
    annual fee in effect on the anniversary date of the license. The 
    anniversary date of the materials license for annual fee purposes is 
    the first day of the month in which the original license was issued.
    
    Section 171.19  Payment
    
        Paragraph (a) would be revised to provide additional methods of 
    payment and to clarify that payments must be made in U.S. funds.
        Paragraph (b) would be revised to give credit for partial payments 
    made by certain licensees in FY 1998 toward their FY 1998 annual fees. 
    The NRC anticipates that the first, second, and third quarterly 
    payments for FY 1998 will have been made by operating power reactor 
    licensees and some large materials licensees before the final rule 
    becomes effective. Therefore, the NRC would credit payments received 
    for those quarterly annual fee assessments toward the total annual fee 
    to be assessed. The NRC would adjust the fourth quarterly invoice to 
    recover the full amount of the revised annual fee or to make refunds, 
    as necessary. Payment of the annual fee is due on the date of the 
    invoice and interest accrues from the invoice date. However, interest 
    will be waived if payment is received within 30 days from the invoice 
    date.
        Paragraph (c) would be revised to update fiscal year references.
        As in FY 1997, the NRC would continue to 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 proposed rule applies 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. 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 
    would continue to be billed in June of each year for the annual fee in 
    effect on June 1. Materials licensees with anniversary dates in FY 1998 
    before the effective date of the FY 1998 final rule will be billed 
    during the anniversary month of the license and continue to pay annual 
    fees at the FY 1997 rate in FY 1998. Those materials licensees with 
    license anniversary dates falling on or after the effective date of the 
    FY 1998 final rule would be billed, at the FY 1998 revised rates, 
    during the anniversary month of their license and payment would be due 
    on the date of the invoice.
        During the past seven 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).
    
    IV. Environmental Impact: Categorical Exclusion
    
        The NRC has determined that this proposed rule is the type of 
    action described in categorical exclusion 10 CFR 51.22(c)(1). 
    Therefore, neither an environmental impact statement nor an 
    environmental impact assessment has been prepared for the proposed 
    regulation. By its very nature, this regulatory action does not affect 
    the environment, and therefore, no environmental justice issues are 
    raised.
    
    V. Paperwork Reduction Act Statement
    
        This proposed rule contains no information collection requirements 
    and, therefore, is not subject to the requirements of the Paperwork 
    Reduction Act of 1995 (44 U.S.C. 3501 et seq.).
    
    VI. Regulatory Analysis
    
        With respect to 10 CFR Part 170, this proposed rule was developed 
    pursuant to Title V of the Independent Offices Appropriation Act of 
    1952 (IOAA) (31 U.S.C. 9701) and the Commission's fee guidelines. When 
    developing these guidelines the Commission took into account guidance 
    provided by the U.S. Supreme Court on March 4, 1974, in its decision of 
    National Cable Television Association, Inc. v. United States, 415 U.S. 
    36 (1974) and Federal Power Commission v. New England Power Company, 
    415 U.S. 345 (1974). In these decisions, the Court held that the IOAA 
    authorizes an agency to charge fees for special benefits rendered to 
    identifiable persons measured by the ``value to the recipient'' of the 
    agency service. The meaning of the IOAA was further clarified on 
    December 16, 1976, by four decisions of the U.S. Court of Appeals for 
    the District of Columbia: National Cable Television Association v. 
    Federal Communications Commission, 554 F.2d 1094 (D.C. Cir. 1976); 
    National Association of Broadcasters v. Federal Communications 
    Commission, 554 F.2d 1118 (D.C. Cir. 1976); Electronic Industries 
    Association v. Federal Communications Commission, 554 F.2d 1109 (D.C. 
    Cir. 1976) and Capital Cities Communication, Inc. v. Federal 
    Communications Commission, 554 F.2d 1135 (D.C. Cir. 1976). These 
    decisions of the Courts enabled the Commission to develop fee 
    guidelines that are still used
    
    [[Page 16053]]
    
    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 proposed amount of the FY 1998 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 1998 budget of 
    $472.8 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 and the general fund related to commercial vitrification 
    of waste at the Department of Energy Hanford, Washington site, and the 
    pilot program pertaining to external regulation of the Department of 
    Energy;
        (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).
    
    VII. 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 proposed rule establishes the schedules of fees that are 
    necessary to implement the Congressional mandate for FY 1998. The 
    proposed rule would result a slight increase in the annual fees charged 
    to some licensees, and holders of certificates, registrations, and 
    approvals. The Regulatory Flexibility Analysis, prepared in accordance 
    with 5 U.S.C. 604, is included as Appendix A to this proposed rule. The 
    Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) was 
    signed into law on March 29, 1996. The SBREFA requires all Federal 
    agencies to prepare a written compliance guide for each rule for which 
    the agency is required by 5 U.S.C. 604 to prepare a regulatory 
    flexibility analysis. Therefore, in compliance with the law, Attachment 
    1 to the Regulatory Flexibility Analysis (Appendix A to this document) 
    is the small entity compliance guide for FY 1998.
    
    VIII. Backfit Analysis
    
        The NRC has determined that the backfit rule, 10 CFR 50.109, does 
    not apply to this proposed rule and that a backfit analysis is not 
    required for this proposed rule. The backfit analysis is not required 
    because these proposed amendments do not require the modification of or 
    additions to systems, structures, components, or the design of a 
    facility or the design approval or manufacturing license for a facility 
    or the procedures or organization required to design, construct or 
    operate a facility.
    
    List of Subjects
    
    10 CFR Part 2
    
        Administrative practice and procedure, Antitrust, Byproduct 
    material, Classified information, Environmental protection, Nuclear 
    materials, Nuclear power plants and reactors, Penalties, Sex 
    discrimination, Source material, Special nuclear material, Waste 
    treatment and disposal.
    
    10 CFR Part 140
    
        Criminal penalties, Extraordinary nuclear occurrence, Insurance, 
    Intergovernmental relations, Nuclear materials, Nuclear power plants 
    and reactors, Reporting and record keeping requirements.
    
    10 CFR Part 170
    
        Byproduct material, Import and export licenses, Intergovernmental 
    relations, Non-payment penalties, Nuclear materials, Nuclear power 
    plants and reactors, Source material, Special nuclear material.
    
    10 CFR Part 171
    
        Annual charges, Byproduct material, Holders of certificates, 
    registrations, approvals, Intergovernmental relations, Non-payment 
    penalties, Nuclear materials, Nuclear power plants and reactors, Source 
    material, Special nuclear material.
    
        For the reasons set out in the preamble and under the authority of 
    the Atomic Energy Act of 1954, as amended, and 5 U.S.C. 553, the NRC is 
    proposing to adopt the following amendments to 10 CFR Parts 2, 140, 170 
    and 171.
    
    PART 2--RULES OF PRACTICE FOR DOMESTIC LICENSING PROCEEDINGS AND 
    ISSUANCE OF ORDERS
    
        1. The authority citation for Part 2 continues to read as follows:
    
        Authority: Secs. 161, 181, 68 Stat. 948, 953, as amended (42 
    U.S.C. 2201, 2231); sec. 191, as amended, Pub. L. 87-615, 76 Stat. 
    409 (42 U.S.C. 2241); sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 
    5841); 5 U.S.C. 552.
        Section 2.101 also issued under secs. 53, 62, 63, 81, 103, 104, 
    105, 68 Stat. 930, 932, 933, 935, 936, 937, 938, as amended (42 
    U.S.C. 2073, 2092, 2093, 2111, 2133, 2134, 2135); sec. 114(f), Pub. 
    L. 97-425, 96 Stat. 2213, as amended (42 U.S.C. 10134(f)); sec. 102, 
    Pub. L. 91-190, 83 Stat. 853, as amended (42 U.S.C. 4332); sec. 301, 
    88 Stat. 1248 (42 U.S.C. 5871). Sections 2.102, 2.103, 2.104, 2.105, 
    2.721 also issued under secs. 102, 103, 104, 105, 183, 189, 68 Stat. 
    936, 937, 938, 954, 955, as amended (42 U.S.C. 2132, 2133, 2134, 
    2135, 2233, 2239). Section 2.105 also issued under Pub. L. 97-415, 
    96 Stat. 2073 (42 U.S.C. 2239). Sections 2.200-2.206 also issued 
    under secs. 161 b, i, o, 182, 186, 234, 68 Stat. 948-951, 955, 83, 
    Stat. 444, as
    
    [[Page 16054]]
    
    amended (42 U.S.C. 2201 (b), (i), (o), 2236, 2282); sec. 206, 88 
    Stat. 1246 (42 U.S.C. 5846). Section 2.205(j) also issued under Pub. 
    L. 101-410, 104 Stat. 890, as amended by section 31001(s), Pub. L. 
    104-134, 110 Stat. 1321-373 (28 U.S.C. 2461 note). Sections 2.600-
    2.606 also issued under sec. 102, Pub. L. 91-190, 83 Stat. 853, as 
    amended (42 U.S.C. 4332). Sections 2.700a, 2.719 also issued under 5 
    U.S.C. 554. Sections 2.754, 2.760, 2.770, 2.780 also issued under 5 
    U.S.C. 557. Section 2.764 also issued under secs. 135, 141, Pub. L. 
    97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161). Section 2.790 
    also issued under sec. 103, 68 Stat. 936, as amended (42 U.S.C. 
    2133) and 5 U.S.C. 552. Sections 2.800 and 2.808 also issued under 5 
    U.S.C. 553. Section 2.809 also issued under 5 U.S.C. 553 and sec. 
    29, Pub. L. 85-256, 71 Stat. 579, as amended (42 U.S.C. 2039). 
    Subpart K also issued under sec. 189, 68 Stat. 955 (42 U.S.C. 2239); 
    sec. 134, Pub. L. 97-425, 96 Stat. 2230 (42 U.S.C. 10154). Subpart L 
    also issued under sec. 189, 68 Stat. 955 (42 U.S.C. 2239). Appendix 
    A also issued under sec. 6, Pub. L. 91-560, 84 Stat. 1473 (42 U.S.C. 
    2135). Appendix B also issued under sec. 10, Pub. L. 99-240, 99 
    Stat. 1842 (42 U.S.C. 2021b et seq.).
    
        2. In Sec. 2.205, paragraph (i) is revised to read as follows:
    
    
    Sec. 2.205  Civil penalties.
    
    * * * * *
        (i) Except when payment is made after compromise or mitigation by 
    the Department of Justice or as ordered by a court of the United 
    States, following reference of the matter to the Attorney General for 
    collection, payment of civil penalties imposed under Section 234 of the 
    Act are to be made payable to the U.S. Nuclear Regulatory Commission, 
    in U.S. funds, by check, draft, money order, credit card, or electronic 
    funds transfer such as Automated Clearing House (ACH) using Electronic 
    Data Interchange (EDI). Federal agencies may also make payment by the 
    On-Line Payment and Collections System (OPAC's). All payments are to be 
    made in accordance with the specific payment instructions provided with 
    Notices of Violation that propose civil penalties and Orders Imposing 
    Civil Monetary Penalties.
    * * * * *
    
    PART 140--FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY 
    AGREEMENTS
    
        3. The authority citation for Part 140 continues to read as 
    follows:
    
        Authority: Secs. 161, 170, 68 Stat. 948, 71 Stat. 576, as 
    amended (42 U.S.C. 2201, 2210); secs. 201, as amended, 202, 88 Stat. 
    1242, as amended, 1244 (42 U.S.C. 5841, 5842).
    
        4. In Sec. 140.7, paragraphs (a) and (c) are revised and paragraph 
    (d) is added to read as follows:
    
    
    Sec. 140.7  Fees.
    
        (a)(1) Each reactor licensee shall pay a fee to the Commission 
    based on the following schedule:
        (i) For indemnification from $500 million to $400 million 
    inclusive, a fee of $30 per year per thousand kilowatts of thermal 
    capacity authorized in the license;
        (ii) For indemnification from $399 million to $300 million 
    inclusive, a fee of $24 per year per thousand kilowatts of thermal 
    capacity authorized in the license.
        (iii) For indemnification from $299 million to $200 million 
    inclusive, a fee of $18 per year per thousand kilowatts of thermal 
    capacity authorized in the license;
        (iv) For indemnification from $199 million to $100 million 
    inclusive, a fee of $12 per year per thousand kilowatts of thermal 
    capacity authorized in the license;
        (2) No fee will be less than $100 per annum for any nuclear 
    reactor. This fee is due for the period beginning with the date on 
    which the applicable indemnity agreement is effective. The various 
    levels of indemnity fees are set forth in the schedule in this 
    paragraph. The amount of indemnification for determining indemnity fees 
    will be computed by subtracting from the statutory limit of liability 
    the amount of financial protection required of the licensee. In the 
    case of licensees subject to the provision of Sec. 140.11(a), this 
    total amount will be the amount as determined by the Commission, of the 
    financial protection available to licensees at the close of the 
    calendar year preceding the one in which the fee becomes due. For those 
    instances in which a certified financial statement is provided as a 
    guarantee of payment of deferred premiums in accordance with 
    Sec. 140.21(e), a fee of $1,000 or the indemnity fee, whichever is 
    greater, is required.
    * * * * *
        (c) Each person licensed to possess and use plutonium in a 
    plutonium processing and fuel fabrication plant shall pay to the 
    Commission a fee of $5,000 per year for indemnification. This fee is 
    due for the period beginning with the date on which the applicable 
    indemnity agreement is effective.
        (d) Indemnity fee payments, made payable to the U.S. Nuclear 
    Regulatory Commission, are to be made in U.S. funds by check, draft, 
    money order, credit card, or electronic funds transfer such as ACH 
    (Automated Clearing House) using EDI (Electronic Data Interchange). 
    Federal agencies may also make payments by the On-Line Payment and 
    Collections System (OPAC's). Where specific payment instructions are 
    provided on the invoices, payment should be made accordingly, e.g. 
    invoices of $5,000 or more should be paid via ACH through NRC's Lockbox 
    Bank at the address indicated on the invoice. Credit card payments 
    should be made up to the limit established by the credit card bank, in 
    accordance with specific instructions provided with the invoices, to 
    the Lockbox Bank designated for credit card payments.
    
    PART 170--FEES FOR FACILITIES, MATERIALS, IMPORT AND EXPORT 
    LICENSES, AND OTHER REGULATORY SERVICES UNDER THE ATOMIC ENERGY ACT 
    OF 1954, AS AMENDED
    
        5. 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).
    
        6. Section 170.12, paragraphs (g) and (h) are revised to read as 
    follows:
    
    
    Sec. 170.12  Payment of fees.
    
    * * * * *
        (g) Inspection fees. (1) Inspection fees will be assessed to 
    recover full cost for each resident inspector assigned to a specific 
    plant or facility. The fees assessed will be based on the number of 
    hours that each inspector assigned to the plant or facility is in an 
    offical duty status (i.e., all time in a non-leave status will be 
    billed), and the hours will be billed at the appropriate hourly rate 
    established in 10 CFR 170.20.
        (2) Fees for all inspections subject to full cost recovery will be 
    assessed on a per inspection basis for costs incurred up to 30 days 
    after issuance of the inspection report. Inspection costs include 
    preparation time, time on site, documentation time, and follow-up 
    activities and any associated contractural service costs, but exclude 
    the time involved in the processing and issuance of a notice of 
    violation or civil penalty. Resident inspector time related to a 
    specific inspection will be assessed in accordance with paragraph 
    (g)(1) of this section, and will not be reflected in the costs billed 
    for the specific inspection.
        (3) Fees for resident inspectors' time and for specific inspections 
    subject to full cost recovery will be billed on a quarterly basis and 
    are payable upon notification by the Commission.
        (h) Method of payment. License fee payments, made payable to the 
    U.S. Nuclear Regulatory Commission, are to
    
    [[Page 16055]]
    
    be made in U.S. funds by check, draft, money order, credit card, or 
    electronic funds transfer such as ACH (Automated Clearing House) using 
    EDI (Electronic Data Interchange). Where specific payment instructions 
    are provided on the invoices to applicants and licensees for services 
    rendered, payment should be made accordingly, e.g. invoice of $5,000 or 
    more should be paid via ACH through NRC's Lockbox Bank at the address 
    indicated on the invoice. Credit card payments should be made up to the 
    limit established by the credit card bank, in accordance with specific 
    instructions provided with the invoices, to the Lockbox Bank designated 
    for credit card payments. Unbilled application and amendment fees are 
    to be paid in a similar manner using the above methods. Applicants and 
    licensees should contact the License Fee and Accounts Receivable Branch 
    at 301-415-7554 to obtain specific written instructions for making 
    electronic payments and credit card payments.
    * * * * *
        7. 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             $124 per hour.                 
     Activities).                                                           
    Nuclear Materials and Nuclear Waste      $121 per hour.                 
     Program (Sec. 170.31 Activities).                                      
                                                                            
    
        8. In Sec. 170.21, the introductory text, Category K, and footnotes 
    1 and 2 to the table are revised to read as follows:
    
    
    Sec. 170.21  Schedule of fees for production and utilization 
    facilities, review of standard referenced design approvals, special 
    projects, inspections and import and export licenses.
    
        Applicants for construction permits, manufacturing licenses, 
    operating licenses, import and export licenses, approvals of facility 
    standard reference designs, requalification and replacement 
    examinations for reactor operators, and special projects and holders of 
    construction permits, licenses, and other approvals shall pay fees for 
    the following categories of services.
    
                            Schedule of Facility Fees                       
                         [See footnotes at end of table]                    
    ------------------------------------------------------------------------
                Facility categories and type of fees                Fees12  
    ------------------------------------------------------------------------
                                                                            
    *                  *                  *                  *              
                      *                  *                  *               
    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.......................        7,900
                Amendment......................................       $7,900
            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.......................        2,800
                Amendment......................................        2,800
            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......................................         180 
    ------------------------------------------------------------------------
    \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.                                                 
    
    
    [[Page 16056]]
    
    * * * * *
        9. 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\                               Fee23         
    ------------------------------------------------------------------------
    1. Special nuclear material:                                            
        A. Licenses for possession and use of 200                           
         grams or more of plutonium in unsealed                             
         form or 350 grams or more of contained U-                          
         235 in unsealed form or 200 grams or more                          
         of U-233 in unsealed form. This includes                           
         applications to terminate licenses as well                         
         as licenses authorizing possession only:                           
            License, Renewal, Amendment............  Full Cost.             
            Inspections............................  Full Cost.             
        B. Licenses for receipt and storage of                              
         spent fuel at an independent spent fuel                            
         storage installation (ISFSI):                                      
            License, Renewal, Amendment............  Full Cost.             
            Inspections............................  Full Cost.             
        C. Licenses for possession and use of                               
         special nuclear material in sealed sources                         
         contained in devices used in industrial                            
         measuring systems, including x-ray                                 
         fluorescence analyzers:\4\                                         
            Application--New license...............  $560.                  
            Amendment..............................  $380.                  
        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...............  $750.                  
            Amendment..............................  $290.                  
        E. Licenses or certificates for                                     
         construction and operation of a uranium                            
         enrichment facility.                                               
            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...............  $120.                  
            Amendment..............................  $280.                  
        C. All other source material licenses:                              
            Application--New license...............  $3,600.                
            Amendment..............................  $560.                  
    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...............  $3,800.                
            Amendment..............................  $530.                  
        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...............  $1,500.                
            Amendment..............................  $560.                  
        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 does not apply to licenses                           
         issued to nonprofit educational                                    
         institutions whose processing or                                   
         manufacturing is exempt under 10 CFR                               
         170.11(a)(4). These licenses are covered                           
         by fee Category 3D:                                                
            Application--New license...............  $6,800.                
            Amendment..............................  $630.                  
    
    [[Page 16057]]
    
                                                                            
        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 includes                         
         licenses issued pursuant to Secs. 32.72,                           
         32.73, and/or 32.74 of this chapter to                             
         nonprofit educational institutions whose                           
         processing or manufacturing is exempt                              
         under 10 CFR 170.11(a)(4):                                         
            Application--New license...............  $1,900.                
            Amendment..............................  $420.                  
        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...............  $1,100.                
            Amendment..............................  $380.                  
        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...............  $1,900.                
            Amendment..............................  $440.                  
        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...............  $4,500.                
            Amendment..............................  $740.                  
        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...............  $2,700.                
            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..............................  $1,000.                
        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...............  $1,700.                
            Amendment..............................  $300.                  
        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...............  $1,000.                
            Amendment..............................  $340.                  
        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...............  $5,400.                
            Amendment..............................  $760.                  
        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...............  $1,800.                
            Amendment..............................  $620.                  
        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...............  $2,000.                
            Amendment..............................  $500.                  
        O. Licenses for possession and use of                               
         byproduct material issued pursuant to Part                         
         34 of this chapter for industrial                                  
         radiography operations:                                            
            Application--New license...............  $4,300.                
            Amendment..............................  $680.                  
        P. All other specific byproduct material                            
         licenses, except those in Categories 4A                            
         through 9D:                                                        
            Application--New license...............  $730.                  
            Amendment..............................  $340.                  
    4. Waste disposal and processing:                                       
    
    [[Page 16058]]
    
                                                                            
        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...............  $2,500.                
            Amendment..............................  $520.                  
        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...............  $2,200.                
            Amendment..............................  $220.                  
    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...............  $3,400.                
            Amendment..............................  $820.                  
        B. Licenses for possession and use of                               
         byproduct material for field flooding                              
         tracer studies:                                                    
            License, renewal, amendment............  Full Cost.             
    6. Nuclear laundries:                                                   
        A. Licenses for commercial collection and                           
         laundry of items contaminated with                                 
         byproduct material, source material, or                            
         special nuclear material:                                          
            Application--New license...............  $6,400.                
            Amendment..............................  $1,000.                
    7. Medical licenses:                                                    
        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...............  $3,500.                
            Amendment..............................  $390.                  
        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...............  $3,800.                
            Amendment..............................  $710                   
        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...............  $1,800                 
            Amendment..............................  $450                   
    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...............  $570.                  
            Amendment..............................  $400.                  
    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...............  $3,600.                
            Amendment--each device.................  $590.                  
        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...............  $2,100.                
            Amendment--each device.................  $1,100.                
        C. Safety evaluation of sealed sources                              
         containing byproduct material, source                              
         material, or special nuclear material,                             
         except reactor fuel, for commercial                                
         distribution:                                                      
            Application--each source...............  $910.                  
            Amendment--each source.................  $610.                  
        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...............  $460.                  
            Amendment--each source.................  $160.                  
    10. Transportation of radioactive material:                             
        A. Evaluation of casks, packages, and                               
         shipping containers:                                               
            Approval, Renewal, Amendment...........  Full Cost.             
            Inspections............................  Full Cost.             
    
    [[Page 16059]]
    
                                                                            
        B. Evaluation of 10 CFR Part 71 quality                             
         assurance programs:                                                
            Application--Approval..................  $340.                  
            Amendment..............................  $620.                  
            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         Full Cost.             
         storage cask Certificate of Compliance.                            
        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:                                         
        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              $7,900.                
                Amendment                            $7,900.                
        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              $2,800.                
                Amendment                            $2,800.                
            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                            $180.                  
    16. Reciprocity:                                                        
        Agreement State licensees who conduct                               
         activities 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.              
    (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.                                            
    
    [[Page 16060]]
    
                                                                            
    (1) Applications for amendments to licenses and approvals and revisions 
      to reciprocity initial applications, except those subject to fees     
      assessed at full costs, must be accompanied by the prescribed         
      amendment/revision fee for each license/revision affected. An         
      application for an amendment to a license or approval classified in   
      more than one fee category must be accompanied by the prescribed      
      amendment fee for the category affected by the amendment unless the   
      amendment is applicable to two or more fee categories in which case   
      the amendment fee for the highest fee category would apply. For those 
      licenses and approvals subject to full costs (fee Categories 1A, 1B,  
      1E, 2A, 4A, 5B, 10A, 11, 12, 13A, and 14), amendment fees are due upon
      notification by the Commission in accordance with Sec. 170.12(c).     
    (2) An application for amendment to a materials license or approval that
      would place the license or approval in a higher fee category or add a 
      new fee category must be accompanied by the prescribed application fee
      for the new category.                                                 
    (3) An application for amendment to a license or approval that would    
      reduce the scope of a licensee's program to a lower fee category must 
      be accompanied by the prescribed amendment fee for the lower fee      
      category.                                                             
    (4) Applications to terminate licenses authorizing small materials      
      programs, when no dismantling or decontamination procedure is         
      required, are not subject to fees.                                    
    (e) Inspection fees. Inspections resulting from investigations conducted
      by the Office of Investigations and nonroutine inspections that result
      from third-party allegations are not subject to fees. The fees        
      assessed at full cost will be determined based on the professional    
      staff time required to conduct the inspection multiplied by the rate  
      established under Sec. 170.20 plus any applicable contractual support 
      services costs incurred. Inspection fees are due upon notification by 
      the Commission in accordance with Sec. 170.12(g).                     
    \2\Fees will not be charged for orders issued by the Commission pursuant
      to 10 CFR 2.202 or for amendments resulting specifically from the     
      requirements of these types of Commission orders. However, fees will  
      be charged for approvals issued under a specific exemption provision  
      of the Commission's regulations under Title 10 of the Code of Federal 
      Regulations (e.g., 10 CFR 30.11, 40.14, 70.14, 73.5, and any other    
      sections now or hereafter in effect) regardless of whether the        
      approval is in the form of a license amendment, letter of approval,   
      safety evaluation report, or other form. In addition to the fee shown,
      an applicant may be assessed an additional fee for sealed source and  
      device evaluations as shown in Categories 9A through 9D.              
    \3\Full cost fees will be determined based on the professional staff    
      time and appropriate contractual support services expended. For those 
      applications currently on file and for which fees are determined based
      on the full cost expended for the review, the professional staff hours
      expended for the review of the application up to the effective date of
      the final rule will be determined at the professional rates in effect 
      at the time the service was provided. For applications currently on   
      file for which review costs have reached an applicable fee ceiling    
      established by the June 20, 1984, and July 2, 1990, rules, but are    
      still pending completion of the review, the cost incurred after any   
      applicable ceiling was reached through January 29, 1989, will not be  
      billed to the applicant. Any professional staff-hours expended above  
      those ceilings on or after January 30, 1989, will be assessed at the  
      applicable rates established by Sec. 170.20, as appropriate, except   
      for topical reports whose costs exceed $50,000. Costs which exceed    
      $50,000 for each topical report, amendment, revision, or supplement to
      a topical report completed or under review from January 30, 1989,     
      through August 8, 1991, will not be billed to the applicant. Any      
      professional hours expended on or after August 9, 1991, will be       
      assessed at the applicable rate established in Sec. 170.20. The       
      minimum total review cost is twice the hourly rate shown in Sec.      
      170.20.                                                               
    \4\Licensees paying fees under Categories 1A, 1B, and 1E are not subject
      to fees under Categories 1C and 1D for sealed sources authorized in   
      the same license except in those instances in which an application    
      deals only with the sealed sources authorized by the license.         
      Applicants for new licenses that cover both byproduct material and    
      special nuclear material in sealed sources for use in gauging devices 
      will pay the appropriate application fee for 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, safeguards, 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
    
        10. 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).
    
        11. Section 171.13 is revised to read as follows:
    
    
    Sec. 171.13  Notice.
    
        The annual fees applicable to an operating reactor and to a 
    materials licensee, including a Government agency licensed by the NRC, 
    subject to this part and calculated in accordance with Secs. 171.17 and 
    171.16, will be published as a notice in the Federal Register as soon 
    as is practicable but no later than the third quarter of the fiscal 
    year. The annual fees will become due and payable to the NRC in 
    accordance with Sec. 171.19 except as provided in Sec. 171.17. 
    Quarterly payments of the annual fees of $100,000 or more will continue 
    during the fiscal year and be based on the applicable annual fees as 
    shown in Secs. 171.15 and 171.16 of the regulations until a notice 
    concerning the revised amount of the fees for the fiscal year is 
    published by the NRC. If the NRC is unable to publish a final fee rule 
    that becomes effective during the current fiscal year, then fees would 
    be assessed based on the rates in effect for the previous fiscal year.
        12. In Sec. 171.15, paragraphs (b), (c) introductory text, (c)(1), 
    (c)(2), (e), and (f) are revised to read as follows:
    
    
    Sec. 171.15  Annual Fees: Reactor operating licenses.
    
    * * * * *
        (b) The FY 1998 annual fee for each operating power reactor which 
    must be collected by September 30, 1998, is $2,980,000. This fee has 
    been determined by adjusting the FY 1997 annual fee, (prior to 
    rounding) upward by 0.1 percent. In the FY 1995 final rule, the NRC 
    stated it would stabilize annual fees by adjusting the annual fees only 
    by the percentage change (plus or minus) in NRC's total budget 
    authority and adjustments based on changes in 10 CFR Part 170 fees as 
    well as on the number of licensees paying the fees. The first 
    adjustment to the annual fees using this method occurred in FY 1996 
    when all annual fees were decreased 6.5 percent below the FY 1995 
    annual fees. The FY 1997 annual fees were also determined by using this 
    method. The FY 1997 annual fees increased 8.4 percent above the FY 1996 
    annual fees. 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:
    
    [[Page 16061]]
    
        (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.
    * * * * *
        (e) The FY 1998 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.............................................    $57,300
    Test reactor.................................................    $57,300
                                                                            
    
        (f) For each fiscal year, annual fees for operating reactors will 
    be calculated and assessed in accordance with Sec. 171.13.
        13. 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 1998 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 1998, the maximum annual fee a small entity is required 
    to pay is $1,800 for each category applicable to the license(s).
        (d) The FY 1998 annual fees for materials licensees and holders of 
    certificates, registrations or approvals subject to fees under this 
    section are shown below. The FY 1998 annual fees, which must be 
    collected by September 30, 1998, have been determined by adjusting 
    upward the FY 1997 exact annual fees (prior to rounding), by 0.1 
    percent. As a result of rounding, the FY 1998 annual fee for some fee 
    categories is the same as the FY 1997 annual fee. In the FY 1995 final 
    rule, the NRC stated it would stabilize annual fees by adjusting the 
    annual fees only by the percentage change (plus or minus) in NRC's 
    total budget authority and adjustments based on changes in 10 CFR Part 
    170 fees as well as on the number of licensees paying the fees. The 
    first adjustment to the annual fees using this method occurred in FY 
    1996, when all annual fees were decreased 6.5 percent below the FY 1995 
    annual fees. The FY 1997 annual fees were also determined by using this 
    method. The FY 1997 annual fees were increased 8.4 percent above the FY 
    1996 annual fees. 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 for convenience 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]                    
    ------------------------------------------------------------------------
                 Category of materials licenses               Annual fees123
    ------------------------------------------------------------------------
    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.....................      $2,607,000
                Nuclear Fuel Services SNM-124...............       2,607,000
            (b) Low Enriched Uranium in Dispersible Form                    
             Used for Fabrication of Power Reactor Fuel:                    
                Combustion Engineering (Hematite) SNM-33....       1,280,000
                General Electric Company SNM-1097...........       1,280,000
                Siemens Nuclear Power SNM-1227..............       1,280,000
                Westinghouse Electric Company SNM-1107......       1,280,000
        (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...................         509,000
            (b) All Others:                                                 
                General Electric SNM-960....................         346,000
        B. Licenses for receipt and storage of spent fuel at                
         an independent spent fuel storage installation                     
         (ISFSI)............................................         283,000
        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.............           1,300
    
    [[Page 16062]]
    
                                                                            
        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)............................................           3,100
        E. Licenses or certificates for the operation of a                  
         uranium enrichment facility........................       2,607,000
    2. Source material:                                                     
        A.(1) Licenses for possession and use of source                     
         material for refining uranium mill concentrates to                 
         uranium hexafluoride...............................         649,000
            (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\.......................          61,800
                Class II facilities\4\......................          34,900
                Other facilities\4\.........................          22,300
            (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)....................          45,400
            (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)...............................           8,000
        B. Licenses which authorize only the possession, use                
         and/or installation of source material for                         
         shielding..........................................             490
        C. All other source material licenses...............           8,700
    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............................          16,700
        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.......................................           5,600
        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. This category does                   
         not apply to licenses issued to nonprofit                          
         educational institutions whose processing or                       
         manufacturing is exempt under 10 CFR 171.11(a)(1).                 
         These licenses are covered by fee Category 3D......          11,200
        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 includes licenses                
         issued pursuant to Secs. 32.72, 32.73 and 32.74 of                 
         this chapter to nonprofit educational institutions                 
         whose processing or manufacturing is exempt under                  
         10 CFR 171.11(a)(1). 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..........           4,400
        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)...................           3,200
        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...................           3,800
        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...................          19,700
        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............................................           5,000
        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....................................           8,900
        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 terms that                  
         have been authorized for distribution to persons                   
         generally licensed under Part 31 of this chapter...           3,800
        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.............           3,300
        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......          12,300
        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..............           5,500
        N. Licenses that authorize services for other                       
         licensees, except:                                                 
    
    [[Page 16063]]
    
                                                                            
            (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..................           6,100
        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.......................................          14,100
        P. All other specific byproduct material licenses,                  
         except those in Categories 4A through 9D...........           1,700
    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\ 102,000
        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............................          14,500
        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.........................           7,700
    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...           8,200
        B. Licenses for possession and use of byproduct                     
         material for field flooding tracer studies.........          13,200
    6. Nuclear laundries:                                                   
        A. Licenses for commercial collection and laundry of                
         items contaminated with byproduct material, source                 
         material, or special nuclear material..............          14,700
    7. Medical licenses:                                                    
        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.....................          10,300
        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\..          23,500
        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\.................           4,700
    8. Civil defense:                                                       
        A. Licenses for possession and use of byproduct                     
         material, source material, or special nuclear                      
         material for civil defense activities..............           1,800
    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.......................................           7,200
        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.............           3,700
        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...           1,600
        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.....................             780
    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\NA
            Other Casks.....................................          \6\N/A
        B. Approvals issued of 10 CFR Part 71 quality                       
         assurance programs:                                                
            Users and Fabricators...........................          78,900
            Users...........................................           1,000
    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......................................         283,000
    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                                                   \6\N/A
    17. Master materials licenses of broadscope issued to                   
     Government agencies                                             421,000
    18. Department of Energy:                                               
        A. Certificates of Compliance.......................   \10\1,169,000
    
    [[Page 16064]]
    
                                                                            
        B. Uranium Mill Tailing Radiation Control Act                       
         (UMTRCA) activities................................      1,966,000 
    ------------------------------------------------------------------------
    \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, 1997, and permanently ceased licensed activities entirely  
      by September 30, 1997. 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\Each fiscal year, 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, 10 CFR 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.                                         
    
        (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 licensing and inspection fees 
    under 10 CFR Part 170 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.
    * * * * *
        14. Section 171.19 is revised to read as follows:
    
    
    Sec. 171.19  Payment.
    
        (a) Method of payment. Annual fee payments, made payable to the 
    U.S. Nuclear Regulatory Commission, are to be made in U.S. funds by 
    check, draft, money order, credit card, or electronic funds transfer 
    such as ACH (Automated Clearing House) using EDI (Electronic Data 
    Interchange). Federal agencies may also make payment by the On-line 
    Payment and Collection System (OPAC's). Where specific payment 
    instructions are provided on the invoices to applicants and licensees, 
    payment should be made accordingly, e.g. invoices of $5,000 or more 
    should be paid via ACH through NRC's Lockbox Bank at the address 
    indicated on the invoice. Credit card payments should be made up to the 
    limit established by the credit card bank, in accordance with specific 
    instructions provided with the invoices, to the Lockbox Bank designated 
    for credit card payments.
        (b) For FY 1998, the Commission will adjust the fourth quarterly 
    invoice 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. 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 on the 
    anniversary date of the license. Payment is due on the invoice date and 
    interest accrues from the date of the invoice. However, interest will 
    be waived if payment is received within 30 days from the invoice date.
        (c) FY 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 FY 1998, annual fees of less than $100,000 must be paid as 
    billed by the NRC. As established in FY 1996, materials license annual 
    fees that are less than $100,000 are billed on the anniversary date of 
    the license. The materials licensees that are 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. Beginning June 11, 1996, 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. Materials licenses subject to the 
    annual fee that are terminated during the fiscal year but prior to the 
    anniversary month of the license will be billed upon termination for 
    the fee in effect at the time of the billing. New materials licenses 
    subject to the annual fee will be billed in the month the license is 
    issued or in the next available monthly billing for the fee in effect 
    on the anniversary date of the license. Thereafter, annual fees for new 
    licenses will be assessed in the anniversary month of the license.
    
    
    [[Page 16065]]
    
    
        Dated at Rockville, Maryland, this 24th day of March, 1998.
    
        For the Nuclear Regulatory Commission.
    Jesse L. Funches,
    Chief Financial Officer.
    
    Appendix A to This Proposed Rule--Regulatory Flexibility Analysis for 
    the Amendments to 10 CFR Part 170 (License Fees) and 10 CFR Part 171 
    (Annual Fees)
    
    I. Background
    
        The Regulatory Flexibility Act of 1980, as amended, (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, FY 1996 
    and FY 1997 fee rules and is continuing their use in this FY 1998 
    proposed rule. The small entity fee categories in Sec. 171.16(c) of 
    this proposed rule reflect the changes in the NRC's size standards 
    adopted in FY 1995. A new maximum small entity fee for manufacturing 
    industries with 35 to 500 employees was established at $1,800 and a 
    lower-tier small entity fee of $400 was established for those 
    manufacturing industries with less than 35 employees. The lower-tier 
    receipts-based threshold of $250,000 was raised to $350,000 to 
    reflect approximately the same percentage adjustment as that made by 
    the SBA when they adjusted the receipts-based standard from $3.5 
    million to $5 million. The NRC believes that continuing these 
    actions for FY 1998 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 about $445.3 million; for 
    FY 1992, about $492.5 million; for FY 1993 about $518.9 million; for 
    FY 1994 about $513 million; for FY 1995 about $503.6 million; for FY 
    1996 about $462.3 million; for FY 1997 about $462.3 million; and the 
    amount to be collected for FY 1998 is approximately $454.8 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), in FY 1995 (60 FR 32218; June 20, 1995), in FY 1996 (61 FR 
    16203; April 12, 1996), and in FY 1997 (62 FR 29194; May 29,1997) 
    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 1991-1997.
        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 adjustments as well as an adjustment for the number 
    of licensees paying the fees. As a result, the NRC is proposing to 
    establish the FY 1998 annual fees for all licensees at 0.1 percent 
    above the FY 1997 exact (prior to rounding) annual fees. Based on 
    this small change, the proposed FY 1998 annual fee (rounded) for 
    many fee categories are the same as the FY 1997 annual fees. Because 
    there has not been a substantial change in the NRC budget or in the 
    magnitude of a specific budget allocation to a class of licensees, 
    the NRC intends to continue to stabilize annual fees by following 
    the same method used for FY 1996 and FY 1997 to establish the FY 
    1998 annual fees.
        Public Law 104-121, the Contract with America Advancement Act of 
    1996, was signed into law on March 29, 1996. Title III of the law is 
    entitled the Small Business Regulatory Enforcement Fairness Act of 
    1996 (SBREFA). The SBREFA has two purposes. The first is to reduce 
    regulatory burdens imposed by Federal agencies on small businesses, 
    nonprofit organizations and governmental jurisdictions. The second 
    is to provide the Congress with the opportunity to review agency 
    rules before they go into effect. Under this legislation, the NRC 
    fee rule, published annually, is considered a ``major'' rule and 
    therefore must be reviewed by Congress and the Comptroller General 
    before the rule becomes effective. Section 312 of the Act provides 
    that for each rule for which an agency prepared a final regulatory 
    flexibility analysis, the agency shall prepare a guide to assist 
    small entities in complying with the rule. The NRC's guide is 
    Attachment 1 to Appendix A of this proposed rule. A regulatory 
    flexibility analysis is prepared for the proposed and final NRC fee 
    rules as implemented by 10 CFR Part 170 and 171 of the Commission's 
    regulations. Therefore, in compliance with the law, Attachment 1 to 
    this Regulatory Flexibility Analysis is the small entity compliance 
    guide for FY 1998.
    
    II. Impact on Small Entities
    
        The comments received on the proposed FY 1991-1997 fee rule 
    revisions and the small entity certifications received in response 
    to the final FY 1991-1997 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 20 percent (approximately 1,400 
    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-
    
    [[Page 16066]]
    
    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.
    
        Since FY 1991 when annual fees were first established, 
    approximately 3,000 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), in the FY 1995 rule (60 FR 32218; June 20, 1995), in the FY 
    1996 rule (61 FR 16203; April 12, 1996), and in the FY 1997 rule (62 
    FR 29194; May 29, 1997). 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 1991-1997 evaluations of these 
    alternatives. Based on that reexamination, the NRC continues to 
    believe that establishment of a maximum fee for small entities is 
    the most appropriate option to reduce the impact on small entities.
    
        The NRC established, and will continue for FY 1998, 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 
    1998, the NRC will rely on the analysis previously completed that 
    established a maximum annual fee for a small entity and the amount 
    of costs that must be recovered from other NRC licensees as a result 
    of establishing the maximum annual fees.
        The NRC continues to believe that the 10 CFR Part 170 license 
    fees (application and amendment), or any adjustments to these 
    licensing fees during the past year, do not have a significant 
    impact on small entities. In issuing this proposed rule for FY 1998, 
    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 1998 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 significantly. 
    Therefore, the NRC is continuing, for FY 1998, 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 1992-1997, 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 impact 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 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 1991-1997 rules remain valid for 
    this proposed rule for FY 1998. In compliance with Public Law 104-
    121, a small entity compliance guide has been prepared by NRC and is 
    shown as Attachment 1 to this Regulatory Flexibility Analysis.
    
    Attachment 1 to Appendix A
    
    U.S. Nuclear Regulatory Commission, Small Entity Compliance Guide, 
    Fiscal Year 1998
    
    Contents
    
    Introduction
    NRC Definition of Small Entity
    NRC Small Entity Fees
    Instructions for Completing NRC Form 526
    
    Introduction
    
        The Small Business Regulatory Enforcement Fairness Act of 1996 
    (SBREFA) requires all Federal agencies to prepare a written guide 
    for each ``major'' final rule as defined by the Act. The NRC's fee 
    rule, published annually to comply with the Omnibus Budget 
    Reconciliation Act of 1990 (OBRA-90) which requires the NRC to 
    collect approximately 100 percent of its budget authority each year 
    through fees, meets the thresholds for being considered a ``major'' 
    rule under the SBREFA. Therefore, in compliance with the law, this 
    small entity compliance guide has been prepared for FY 1998. The 
    purpose of this guide is to assist small entities in complying with 
    the NRC fee rule.
        This guide is designed to aid NRC materials licensees. The 
    information provided in this guide may be used by licensees to 
    determine whether they qualify as a small entity under NRC 
    regulations and are therefore eligible to pay reduced FY 1998 annual 
    fees assessed under 10 CFR Part 171. The NRC, in compliance with the 
    Regulatory Flexibility Act of 1980 (RFA), has established separate 
    annual fees for those materials licensees who meet the NRC's size 
    standards for small entities. These size standards, developed in 
    consultation with the Small
    
    [[Page 16067]]
    
    Business Administration, were revised by the NRC and became 
    effective on May 11, 1995. The small entity size standards are found 
    at 10 CFR 2.810 of the NRC's regulations. To comply with the RFA, 
    the NRC has established two tiers of small-entity fees. These fees 
    are found at 10 CFR 171.16(c) of the NRC's fee regulations.
        Licensees who meet NRC's size standards for a small entity must 
    complete NRC Form 526 in order to qualify for the reduced annual 
    fee. NRC Form 526 will accompany each annual fee invoice mailed to 
    materials licensees. The completed form, along with the appropriate 
    small entity fee and the payment copy of the invoice, should be 
    mailed to the U.S. Nuclear Regulatory Commission, License Fee and 
    Accounts Receivable Branch, P.O. Box 954514, St. Louis, MO 63195-
    4514.
    
    NRC Definition of Small Entity
    
        The NRC, in consultation with the Small Business Administration, 
    has defined a small entity for purposes of compliance with its 
    regulations. The definition is codified in NRC's regulations at 10 
    CFR 2.810. Under the NRC regulation, a small entity is:
        1. Small business--a for-profit concern that provides a service 
    or a concern not engaged in manufacturing with average gross 
    receipts of $5 million or less over its last 3 completed fiscal 
    years;
        2. Manufacturing industry--a manufacturing concern with an 
    average number of 500 or fewer employees based upon employment 
    during each pay period for the preceding 12 calendar months;
        3. Small organization--a not-for-profit organization which is 
    independently owned and operated and has annual gross receipts of $5 
    million or less;
        4. Small governmental jurisdiction--a government of a city, 
    county, town, township, village, school district or special district 
    with a population of less than 50,000;
        5. Small educational institution--an educational institution 
    supported by a qualifying small governmental jurisdiction, or one 
    that is not state or publicly supported and has 500 or fewer 
    employees.1
    ---------------------------------------------------------------------------
    
        \1\An educational institution referred to in the size standards 
    is an entity whose primary function is education, whose programs are 
    accredited by a nationally recognized accrediting agency or 
    association, who is legally authorized to provide a program of 
    organized instruction or study, who provides an educational program 
    for which it awards academic degrees, and whose educational programs 
    are available to the public.
    ---------------------------------------------------------------------------
    
    NRC Small Entity Fees
    
        The NRC has established two tiers of small-entity fees for 
    licensees that qualify under the NRC's size standards. Currently, 
    these fees are as follows:
    
    ------------------------------------------------------------------------
                                                                    Maximum 
                                                                     annual 
                                                                    fee per 
                                                                    licensed
                                                                    category
    ------------------------------------------------------------------------
    Small Business 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
    ------------------------------------------------------------------------
    
        To pay a reduced annual fee, a licensee must use NRC Form 526, 
    enclosed with the fee invoice, to certify that it meets NRC's size 
    standards for a small entity. About 1,400 licensees certify each 
    year that they qualify as a small entity under the NRC size 
    standards and pay a reduced annual fee. Approximately 800 licensees 
    pay the small entity fee of $1,800 while 600 licensees pay the 
    lower-tier, small-entity fee of $400.
    
    Instructions for Completing NRC Form 526
    
        1. File a separate NRC Form 526 for each annual fee invoice 
    received.
        2. Complete all items on NRC Form 526 as follows:
        a. The license number and invoice number must be entered exactly 
    as they appear on the annual fee invoice.
        b. The Standard Industrial Classification (SIC) Code should be 
    entered if it is known.
        c. The licensee's name and address must be entered as they 
    appear on the invoice. Name and/or address changes for billing 
    purposes must be annotated on the invoice. Correcting the name and/
    or address on NRC Form 526 or on the invoice does not constitute a 
    request to amend the license. Any request to amend a license is to 
    be submitted to the respective licensing staffs in the NRC Regional 
    or Headquarters Offices.
        d. Check the appropriate size standard under which the licensee 
    qualifies as a small entity. Check one box only. Note the following:
        (1) The size standards apply to the licensee, not the individual 
    authorized users listed in the license.
        (2) Gross annual receipts as used in the size standards includes 
    all revenue in whatever form received or accrued from whatever 
    sources, not solely receipts from licensed activities. There are 
    limited exceptions as set forth at 13 CFR 121.104. These are: the 
    term receipts excludes net capital gains or losses, taxes collected 
    for and remitted to a taxing authority if included in gross or total 
    income, proceeds from the transactions between a concern and its 
    domestic or foreign affiliates (if also excluded from gross or total 
    income on a consolidated return filed with the IRS), and amounts 
    collected for another by a travel agent, real estate agent, 
    advertising agent, or conference management service provider.
        (3) A licensee who is a subsidiary of a large entity does not 
    qualify as a small entity.
        (4) The owner of the entity, or an official empowered to act on 
    behalf of the entity, must sign and date the small entity 
    certification.
        3. The NRC sends invoices to its licensees for the full annual 
    fee, even though some entities qualify for reduced fees as a small 
    entity. Licensees who qualify as a small entity and file NRC Form 
    526, which certifies eligibility for small entity fees, may pay the 
    reduced fee, which for a full year is either $1,800 or $400, for 
    each fee category shown on the invoice depending on the size of the 
    entity. Licensees granted a license during the first six months of 
    the fiscal year and licensees who file for termination or for a 
    possession only license and permanently cease licensed activities 
    during the first six months of the fiscal year pay only 50 percent 
    of the annual fee for that year. Such an invoice states the ``Amount 
    Billed Represents 50% Proration.'' This means the amount due from a 
    small entity is not the prorated amount shown on the invoice but 
    rather one-half of the maximum annual fee shown on NRC Form 526 for 
    the size standard under which the licensee qualifies, resulting in a 
    fee of either $900 or $200 for each fee category billed instead of 
    the full small entity annual fee of $1,800 or $400.
        4. A new small entity form (NRC Form 526) is required to be 
    filed with the NRC each fiscal year in order to qualify for reduced 
    fees for that fiscal year. Because a licensee's ``size,'' or the 
    size standards, may change from year to year, the invoice reflects 
    the full fee and a new Form must be completed and returned for the 
    fee to be reduced to the small entity fee. LICENSEES WILL NOT BE 
    ISSUED A NEW INVOICE FOR THE REDUCED AMOUNT. The completed NRC Form 
    526, the payment of the appropriate small entity fee, and the 
    ``Payment Copy `` of the invoice should be mailed to the U.S. 
    Nuclear Regulatory Commission, License Fee and Accounts Receivable 
    Branch, P.O. Box 954514, St. Louis, MO 63195-4514.
        5. Questions regarding fee invoices may be posed orally or in 
    writing. Please call the license fee staff at 301-415-7554 or write 
    to the U.S. Nuclear Regulatory Commission, Washington, DC 20555, 
    Attention: Office of the Chief Financial Officer.
        6. False certification of small entity status could result in 
    civil sanctions being imposed by the NRC pursuant to the Program 
    Fraud Civil Remedies Act, 31 U.S.C. 3801 et. seq. NRC's implementing 
    regulations are found at 10 CFR Part 13.
    
    [FR Doc. 98-8279 Filed 3-31-98; 8:45 am]
    BILLING CODE 7590-01-P
    
    
    

Document Information

Published:
04/01/1998
Department:
Nuclear Regulatory Commission
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
98-8279
Dates:
The comment period expires May 1, 1998. Comments received after this date will be considered if it is practical to do so, but the NRC is able to ensure only that comments received on or before this date will be considered. Because OBRA-90 requires that NRC collect the FY 1998 fees by September 30, 1998, requests for extensions of the comment period will not be granted.
Pages:
16046-16067 (22 pages)
PDF File:
98-8279.pdf
CFR: (14)
10 CFR 171.11(a)
10 CFR 140.21(e)
10 CFR 134
10 CFR 2.205
10 CFR 170.21
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