ML20034F828
| ML20034F828 | |
| Person / Time | |
|---|---|
| Issue date: | 02/10/1993 |
| From: | Taylor J NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| To: | Craig L SENATE |
| Shared Package | |
| ML20034F829 | List: |
| References | |
| FRN-57FR18095, RULE-PR-170, RULE-PR-171 CCS, NUDOCS 9303050072 | |
| Download: ML20034F828 (3) | |
Text
s A
ne micg#'o UMITED STATES y
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NUCLEAR REGULATORY COMMISSION g
WASHINGTON D. C. 20555
((g J February 10, 1993 The Honorable Larry E.
Craig United States Senator 1292 Addison Ave.
E.
Twin Falls, ID 83301
Dear Senator Craig:
I am responding to your January 19, 1993, letter written on behalf of your constituent, Gary R.
Burkett of EHM Engineers, Inc., concerning a recent inspection fee assessed to his firm and the recent revisions to our fee regulations requiring annual fees in addition to the licensing fees.
The NRC fees are to implement Public Law 101-508, tne Omnibus Budget Reconciliation Act of 1990.
The Act requires that the Commission recover 100 percent of its budget authority, less appropriations from the Department of Energy (DOE) administered Nuclear Waste Fund, for Fiscal Years (FY) 1991 through 1995 by assessing fees.
To accomplish this, the NRC assesses two types of fees.
License and inspection fees are assessed under 10 CFR Part 170 for identifiable services to specific applicants and licensees.
The fees for the license issued to EHM Engineers, Inc. and the inspection are these types of fees.
To recover 100 percent of the budget, the NRC also assesses annual fees under 10 CFR Part 171.
The annual fees recover the cost of the Commission's generic and other regulatory activities not recoverable under Part 1~.'O that are attributable to a class of licensees.
For FY 1991, the Commission established a maximum annual fee of
$1,800 for small entities.
Since the FY 1991 annual fee ($1,500) for the type of license held by EHM Engineers, Inc. was less than the maximum small entity fee, they paid the prescribed annual fee less a $100 surcharge.
After closely monitoring the new rule during its first five months of implementation, the Commission took further action to reduce the impact of the annual fees for FY 1992 on small entities.
On April 17, 1992, a rule was published establishing a lower tier small entity fee limit of $400 for small businesses and non-profit organizations with gross annual receipts of less than $250,000 and small governmental jurisdictions with populctions of less than 20,000.
The Commission continued the
$1,800 small entity fee for licensees with gross annual receipts 030013 i
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PDR PR l) i 170 57FR18095 PDR I k l
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2 between $250,000 and $3,500,000.
Since the FY 1992 annual fee
($2,250) for the type of license held by EHM Engineers, Inc. was greater than the $1,800 small entity fee, their FY 1992 payment was reduced to the small entity amount.
i The Commission recognizes that its approach for small entity fees does not eliminate all economic impacts.
However, it strikes a balance between the requirements of the Public Law to collect 100 percent of the budget by recovering costs and the Regulatory Flexibility Act to consider the impact on small entities.
With regard to the concern that EEM Engineers, Inc. had an inspection in September 1992 which took about 30 minutes for which they were billed $1,300.00, the NRC is obligated by the Atomic Energy Act of 1954, as amended, to determine that licensed radioactive material is used in a manner which protects the public and the licensee.
This is accomplished by the r
commission's ongoing inspection program.
The Commission's policy of charging fees for inspections is based on Title V of the Independent Offices Appropriation Act of 1952 (IOAA) (31 U.S.C.
9701) which provides that the agency's inspection and licensing i
activities should be self-sustaining to the fullest extent possible.
In developing the current fees, the NRC was obligated to examine the cost of health and safety inspections and to design a fee schedule to cover the NRC's costs of provid3ng the services.
1 In developing and establishing the amount of the inspection fees i
to be assessed, the NRC was obligated under the law to examine the Part 170 specific costs of conducting many types of inspections.
The cost of an inspection varies with the type and use of the licensed material.
Because License 11-27304-01 authorizes the use of gauges containing byproduct material, fee Category 3P was assigned.
The FY 1992 inspection fee of
$1,300.00 for this category reflects the average cost to the NRC for inspecting a licensed operation in that category.
In determining the average cost. the NRC took into account all professional staff-hours associated with the inspection, including the time to prepare for the inspection, conduct the on-site inspection, and prepare the required inspection report.
The method used by the NRC in determining fees for small materials programs was upheld on August 24, 1979, by the U.S. Court of Appeals for the Fifth Circuit in Mississippi Power and Licht Co.
v.
U.S.
Nuclear Reaulatory Commission, 601 F.2d 223 (1979), cert.
denied 44 U.S. 1102 (1980).
The Court indicated that a fee, on the average, should not exceed the sum of the direct and indirect costs which the NRC incurs in furnishing the service for a member of the class of recipients for which the fee is assessed.
The size of the company, the number of gauges possessed by the P
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i licensee
'.he frequency of use of those gauges were not l
criteria to be used in determining the amount of the fee to be assessed.
We realize, of course, that fees do have a financial impact on NRC licensees.
Accordingly, in developing the NRC's fee schedules, every effort was made to establish fees that are fair i
and equi:able.
7 addition, the NRC's budget is developed so as to include the minimum resources necessary to provide adequate j
protection of the public nealth and safety, the NRC mission.
j If I can be of further assistance, please let me know.
Sincerely, f
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-Ja5 Y M.'T lor Edecutive Director
for Operations s
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