ML20056H507
| ML20056H507 | |
| Person / Time | |
|---|---|
| Issue date: | 08/05/1993 |
| From: | Taylor J NRC OFFICE OF ENFORCEMENT (OE) |
| To: | Coats D SENATE |
| Shared Package | |
| ML20056H508 | List: |
| References | |
| FRN-58FR21662, RULE-PR-170, RULE-PR-171 CCS, NUDOCS 9309090451 | |
| Download: ML20056H507 (2) | |
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UNITED STATES t
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j NUCLEAR REGULATORY COMMISSION l
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't WASHINGTON, D.C. 20555-0001 k'
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August 5,1993 The Honorable Dan Coats United States Senate Washington, D.C.
20510
Dear Senator Coats:
I
) am responding to your letter of July 20, 1993, written on behalf of your -
constituent, Mack L. Richard, Radiation Safety Officer for the Indiana University Medical Center. Mr. Richard's inquiry relates to the NRC's fee structure.
As you are aware, the Omnibus Budget Reconciliation Act of 1990 (OBRA-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.
i The Commission was required to collect approximately $445 million for FY 1991;
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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
't CFR Part 170 include license application fees, license amendment fees, license i
renewal fees, and inspection fees. Annual fees are to recover NRC's generic l
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 July 20, 1993, the NRC published the final rule that establishes 1
both types of fees for FY 1993.
In our FY 1993 fee schedule,: we have continued the approach used in FY 1992 to balance the economic burden that fees represent for small licensees against-the requirements that the NRC collect fees. The NRC has, in fact,-made two separate accommodations to the' annual fees under 10 CFR Part 171 to reduce the-impact on small entities.
For-licensees with gross receipts 1 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 le.es than $250,000 and i
for small governmental jurisdictions with populations of.less than 20,000.
l The. Indiana University has two NRC licenses.
License 13-02752-03~is
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classified as a broad scope medical institution and was issued in December j
1992.-
Indiana University will be subject to annual fees for this license as e
of FY 1994.
License 13-02752-08 is for possession and use'of special ' nuclear i
material in sealed sources contained in teletherapy units and the FY 1993 i
annual fee is $14,720.
If Indiana University qualifies under one of the small entity ' size standards, their annual. fees would reduce accordingly.- The
- j Commission recognizes that this process does not eliminate all economic impacts. We have, however, attempted to strike a balance between the q
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The Honorable Dan Coats Congressional requirement to collect 100 percent of the budget by recovering costs and the Regulatory Flexibility Act to consider the impact on small entities.
The FY 1993 10 CFR Part 170 fees for specific services to identifiable applicants and licensees are higher than last year's fees.. The 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 hours were 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 inspection 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 has recently been extended and will now expire and will now expire on August 18, 1993.
Licensees and interested parties are encouraged to submit comments in accordance with the Notice.
If I can be of further assistance, please let me know.
t Sincerely, Mj f
s uw J mes M. Taylor EpecutiveDirector for Operations v
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