ML20046B769
| ML20046B769 | |
| Person / Time | |
|---|---|
| Issue date: | 07/08/1993 |
| From: | Taylor J NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| To: | Rockefeller J SENATE |
| Shared Package | |
| ML20046B770 | List: |
| References | |
| FRN-58FR21116, RULE-PR-170, RULE-PR-171 CCS, NUDOCS 9308060177 | |
| Download: ML20046B769 (2) | |
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NUCLEAR REGULATORY COMMISSION
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WASHINGTON, D C. 20555-0001 N' rs "/
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July 8, 1993 The Honorable John D. Rockefeller, IV United States Senator 405 Capitol Street Suite 608 Charleston, West Virginia 25301
Dear Senator Rockefeller:
I am responding to your letter of June 10, 1993, (case code: WWH), written on behalf of your constituent, Mr. Patrick Riley, President, Riley Mannon &
Sturgeon, Ltd., regarding NRC's proposed fee structure for FY 1993.
As you are aware, the Omnibus Budget Reconciliation Act of 1990 (0 BRA-90) 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 1991 through 1995 by assessing license and annual fees.
The Commission was required to collect approximately $445 million for FY 1991; approximately $493 million for FY 1992; and approximately $519 million for FY 1993. These budgeted amounts, which were appropriated, represent those resources necessary for NRC to perform its safety mission.
To recover the budget, the NRC assesses licensing and inspection fees under 10 CFR Part 170 and annual fees under 10 CFR Part 171.
Fees assessed under 10 CFR Part 170 include license application fees, license amendment fees, license renewal fees, and inspection fees. Annual fees are to recover NRC's generic and other costs that are not recovered as identifiable services to specific licensees and applicants under 10 CFR Part 170. The annual fees allocate the generic costs that are attributable to a given class of licensee to that class. On April 23, 1993, the NRC published for comment a proposed rule that establishes both types of fees for FY 1993.
The proposed regulations continue previous provisions that reduce the impact of fees on small entities.
For licensees with gross receipts between $250,000 and $3,500,000, a maximum annual fee of $1,800 has been established. A lower-tier small entity fee of $400 has been established for small businesses and non-profit organizations with gross annual receipts of less than $250,000 and for small governmental jurisdictions with populations of less than 20,000.
For example, under the proposed rule the annual fee for a well logger licensee with gross income between $250,000 and $3,500,000 would be reduced by $9,420 (from $11,220 to $1,800), and the annual fee for a well logger licensee with gross income less than $250,000 would be reduced by $10,820 (from $11,220 to
$400). The Commission recognizes that this process does not eliminate all economic impacts, but 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.
The proposed FY 1993 10 CFR Part 170 fees for specific services to identifiable applicants and licensees are higher than last year's fees.
The 9308060177 930708 0
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,i The Honorable John D. Rockefeller, IV increases for FY 1993 result primarily from the requirement of the Chief Financial Officers Act to conduct a biennial review of fees and other charges to ensure that the fees and charges reflect the cost of the services. The NRC biennial review indicated that the NRC needed to modify the average number of hours on which the current licensing and inspection flat fees are based in order to recover the cost of providing the licensing and inspection services.
To determine the licensing and inspection flat fees for materials licensees and applicants, the NRC used historical data to determine the average number of professional hours required to perform a licensing action or inspection for each license category.
These revised average nours were then multiplied by the proposed professional hourly rate for FY 1993.
The relatively large increases are necessary to update the average number of professional hours used in previous fee schedules. During the past years, the NRC's itspection program has changed significantly.
In some program areas, for example, NRC management guidance has emphasized that inspections be more thorough and in-depth so as to improve health and safety.
A small entity reduction has not been provided for those fees for services since the licensees already receive size reductions each year for annual fees as discussed in the previous paragraph.
The Commission published a Federal Register Notice on April 19, 1993, that solicits public comment on changes to NRC's fee policy and associated legislation.
This action responds to Section 2903(c) of the Energy Policy Act of 1992, which requires the NRC to review its policy for assessment of annual charges under Section 6101(c) of the Omnibus Budget Reconciliation Act of 1990, solicit public comment on the need for changes to such policy, and recommend to the Congress such changes in existing law as the NRC finds are needed to prevent the placement of an unfair burden on certain NRC licensees.
In addition to publication in the Federal Register, the Notice was sent to all licensees.
The comment period expires on July 19, 1993.
Licensees and interested parties are encouraged to submit comments in accordance with the Notice.
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If I can be of further assistance, please let me know.
Sincerely,
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kmes M.
'aylor.
xecutive Director for Operations 2