ML20207H159

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Informs That Commission Amending Fee Regulations in 10CFR170 & 171.Final Amends to 10CFR170 Will Continue Commission Initiatives to More Appropriately Recover Costs for Addl Activities Through 10CFR170 License & Insp Fees
ML20207H159
Person / Time
Issue date: 06/05/1999
From: Shirley Ann Jackson, The Chairman
NRC COMMISSION (OCM)
To: J. J. Barton, Domenici P, Inhofe J, Kasich J, Packard R
HOUSE OF REP., HOUSE OF REP., APPROPRIATIONS, SENATE, APPROPRIATIONS, SENATE, ENVIRONMENT & PUBLIC WORKS
Shared Package
ML20207H162 List:
References
NUDOCS 9906140340
Download: ML20207H159 (12)


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CHAIRMAN The Honorable James M. Inhofe, Chairman Subcommittee on Clean Air, Wetlands, Private Property and Nuclear Safety Committee on Environment and Public Works United States Senate Washington, DC 20510

Dear Mr. Chairman:

The Omnibus Budget Reconciliation Act of 1990, as amended, requires that the Nuclear Regulatory Commissica (NRC) recover approximately 100 percent of its budget authority, less the appropriation from the Nuclear Waste Fund, for Fiscal Years 1991 through 1999 by assessing license and annual fees. For FY 1999, the NRC must collect approximately $449.6 million through these fees, in order to comply with the law, the Commission is amending its fee regulations in 10 CFR Parts 170 and 171. The final amendments to 10 CFr. Part 170 will continue the Commission's initiatives to mare appropriately recover costs for additional activities through 10 CFR Part 170 license and inspection fees rather than through 10 CFR Part 171 annual fees. The final amendments will also revise the professional hourly rates and 11at" licensing fees to reflect the costs of providing NRC licensing services to applicants and licensees.

The final amendments to 10 CFR Part 171 will establish the amount of the FY 1999 annual fees to be assessed to operating reactors, fuel cycle licensees, transportation certificate holders, and materials licensees consistent with the Commission's 1995 commitment (60 FR 32225) to reestablish annual fees if there if a substantial change in the total NRC budget or the magnitude of the budget allocated to a specific class of licensees. This will result in the FY 1999 annual fees decreasing for operating reactors and certain other licensees based on reduced budgeted costs for those classes of licensees. However, the annual fees will increase for some classes of licensees due to increased budgeted costs for those classes and decreases in the number of licensees in those classes.

For certain classes of licensees, the annual fee increases will be significant. Therefore, the Commission presented in the proposed rule two optional annual fee methods for FY 1999 public comment: 1) establish the annual fees without a cap on fee increases; or 2) establish the annual fees with a cap so that no licensee's annual fee increases more than 50 percent from FY 1998. The comments received on the proposed rule did not provide overwhelming support  !

br establishing annual fees with a cap. The Commission has decided to establish the 1999 fees without a cap on fee increases. While the NRC is sensitive to the effects the reestablished annual fees will have on those licensees with significant increases, establishing new annual fees l without a cap on the increase results in a fair and equitable allocation of costs among licensees. l Those NRC licensees that can qualify as a small entity under the NRC's size standards will j continue to be eligible to pay reduced annual fees. '

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r Enclosed is a copy of the final rule which is being transmitted to the Federal Register for

_ publication. Tne final rule will become effective 60 days after publication.

Sincerely, hlo r Shirley Ann Jackson

Enclosure:

Final Revision to 10 CFR Pads 170 and 171 cc: Senator Bob Graham I

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..... June 5, 1999 CHARMAN The Honorable Joe Barton, Chairman Subcommittee on Energy and Power Committee on Commerce United States House of Representatives Washington, DC 20515

Dear Mr. Chairman:

The Omnibus . Budget Reconciliation Act of 1990, as amended, requires that the Nuclear Regulatory Commission (NRC) recover approximately 100 percent of its budget authority, less the appropriation from the Nuclear Waste Fund, for Fiscal Years 1991 through 1999 by assessing license and annual fees. For FY 1999, the NRC must collect approximately $449.6 million through these fees.

In order to comply with the law, the Commission is amending its. fee regulations in 10 CFR Parts 170 and 171. The final amendments to 10 CFR Part 170 will continue the Commission's initiatives to more appropriately recover costs for additional activities through 10 CFR Part 170

. license and inspection fees rather than through 10 CFR Part 171 annual fees. The final amendments will also revise the professional hourly rates and " flat" licensing fees to reflect the costs of providing NRC licensing services to applicants and licensees.

The final amendments to 10 CFR Part 171 will establish the amount of the FY 1999 annual fees to be assessed to operating reactors, fuel cycle licensees, transportation certificate holders, and materials licensees consistent with the Commission's 1995 commitment (60 FR 32225) to l reestablish annual fees if there if a substantial change in the total NRC hudget or the magnitude 1 of the budget allocated to a specific class of licensees. This will result in the FY 1999 annual fees i decreasing for operating reactors and certain other licensees based on reduced budgeted costs .

for those classes of licensees. However, the annual fees will increase for some classes of  !

licensees due to increased budgeted costs for those classes and decreases in the number of licensees in those classes.

For certain classes of licensees, the annual fee increases will be significant. Therefore, the Commission presented in the proposed rule two optional annual fee methods for FY 1999 public comment: 1) establish the annual fees without a cap on fee increases; or 2) establish the annual fees with a cap so that no licensee's annual fee increases more than 50 percent from FY 1998. The comments received on the proposed rule did not provide overwhelming support for establishing annual fees with a cap. The Commission has decided to establish the 1999 fees without a cap on fee increases. While the NRC is sensitive to the effects the reestablished  :

annual fees will have on those licensees with significant increases, establishing new annual fees without a cap on the increase results in a fair and equitable allocation of costs among licensees.

Those NRC licensees that can qualify as a small entity under the NRC's size standards will continue tu be eibible to pay reduced annual fees.

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Enclosed le u copy of the final rule which is being transmitted to the Federal Register for publication. The final rule will become effective 60 days after publication.

Sincerely, Shirley Ann Jackson

Enclosure:

Final Revision to 10 CFR Pads 170 and 171 cc: Representative Ralpt. M. Hall

jo # UNITED STATES p \ NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 2066H001 e

\ .... .j June 5, 1999 CHAIRMAN The Honorable Pete V. Domenici, Chairman Subcommittee on Energy and Water Development Committee on Appropriations United States Senate Washington, DC 20510 ,

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Dear Mr. Chairman:

The Omnibus Budget Reconciliation Act of 1990, as amended, requires that the Nuclear Regulatory Commission (NRC) recover approximately 100 percent of its budget authority, less the appropriation from the Nuclear Waste Fund, for Fiscal Years 1991 through 1999 by assessing license and annual fees. For FY 1999, the NRC must collect approximately $449.6 million through these fees.

In order to comp!y with the law, the Commission is amending its fee regulations in 10 CFR Parts 170 and 171. The final amendments to 10 CFR Part 170 will continue the Commission's initiatives to more appropriately recover costs for additional activities through 10 CFR Part 170 )

license and inspection fees rather than through 10 CFR Part 171 annual fees. The final amendments will also revise the professional hourly rates and " flat" licensing fees to reflect the costs of p"aviding NRC licensing services to applicants and licensees.

The final amendments to 10 CFR Part 171 will establish the amount of the FY 1999 annual fees to be assessed to operating reactors, fuel cycle licensees, transportation certificate holders, and materials licensees consistent with the Commission's 1995 commitment (60 FR 32225) to reestablish annual fees if there if a substantial change in the total NRC budget or the magnitude of the budget allocated to a specific class of licensees. This will result in the FY 1999 annual fees decreasing for operating reactors and certain other licensees based on reduced budgeted costs l for those classes of licensees. However, the annual fees will increase for some classes of i licensees due to increased budgeted costs for those classes and decreases in the number of licensees in those classes.

. 1 For certain classes of licensees, the annual fee increases will be significant. Therefore, the l Commission presented in the proposed rule two optional annual fee methods for FY 1999 public comment: 1) establish the annual fees without a cap on fee increases; or 2) establish the annual fees with a cap so that no licensee's annual fee increases more than 50 percent from FY 1998. The comments received on the proposed rule did not provide overwhelming support for establishing annual fees with a cap. The Commission has decided to establish the 1999 fees l without a cap on fee increases. While the NRC is sensitive to the effects the reestablished annual fees will have on those licensees with significant increases, establishing new annual fees without a cap on the increase results in a fair and equitable allocation of costs among licensees. l Those NRC licensees that can qualify as a small entity under the NRC's size standards will continue to be eligible to pay reduced annual fees.

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Enclosed is a copy of the final rule which is being transmitted to the Federal Register for publication; The final rule will become effective 60 days after publication.

Sincerely, M((. / _. _-

Shirley Ann Jackson

Enclosure:

Final Revision to 10 CFR Parts 170 and 171 cc: Senator Harry Reid 1

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W e:o z4 UNITED STATES p %g NUCLEAR REGULATORY COMMISSION WASHINGTON. D.C. 20666-0001

          • June 5, 1999 CHAIRMAN

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P ie Honorable Ron Packard, Chairman Subcommittee on Energy and Water Development Committee on Appropriations United States House of Representatives Washington, DC 20515

Dear Mr. Chairman:

The Omnibus Budget Reconciliation Act of 1990, as amended, requires that the Nuclear Regulatory Commission (NRC) recover approximately 100 percent of its budget authority, less the appropriation from the Nuclear Waste Fund, for Fiscal Years 1991 through 1999 by assessing l license and annual fees. For FY 1999, the NRC must collect approximately $449.6 million through these fees.

In order to comply with the law, the Commission is amending its fee regulations in 10 CFR Parts 170 and 171. The final amendments to 10 CFR Part 170 will continue the Commission's initiatives to more appropriately recover costs for additional activities through 10 CFR Part 170 license and inspection fees rather than through 10 CFR Part 171 annual fees. The final amendments will also revise the professional hourly rates and " flat" licensing fees to reflect the costs of providing NRC licensing services to applicants and licensees.

The final amendments to 10 CFR Part 171 will establish the amount of the FY 1999 annual fees to be assessed to operating reactors, fuel cycle licensees, transportation certificate holders, and materials licensees consistent with the Commission's 1995 commitment (60 FR 32225) to reestablish annual fees if there if a substantial change in the total NRC budget or the magnitude of the budget allocated to a specific class of licensees. This will result in the FY 1999 annual fees decreasing for operating reactors and certain other licensees based on reduced budgeted costs for those classes of licensees. However, the annual fees will increase for some classes of licensees due to increased budgeted costs for those classes and decreases in the number of licensees in those classes. -

For certain classes of licensees, the annual fee increases will be significant. Therefore, the Commission presented in the proposed rule two optional annual fee methods for FY 1999 public comment: 1) establish the annual fees without a cap on fee increases; or 2) establish the annual fees with a cap so that no licensee's annual fee increases more than 50 percent from FY 1998. The comments received on the proposed rule did not provide overwhelming support for establishing annual fees with a cap. The Commission has decided to establish the 1999 fees without a cap on fee increases. While the NRC is sensitive to the effects the reestablished annual fees will have on those licensees with significant increases, establishing new annual fees without a cap on the increase results in a fair and equitable allocation of costs among licensees.

Those NRC licensees that can qualify as a small entity under the NRC's size standards will continue to be eligible to pay reduced annual fees.

2 Enclosed is a copy of the final rule which is being transmitted to the Federal Register for publication. The final rule will become effective 60 days after publication.

Sincerely, l Q '_ _/

Shirley Ann Jackson

Enclosure:

Final Revision to 10 CFR Pads 170 and 171 cc: Representative Peter J. Visclosky l

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/ June 5, 1999 CHAIRMAN l

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The Honorable John R. Kasich, Chairman Committee on the Budget United States House of Representatives Washington, DC 20515

Dear Mr. Chairman:

The Omnibus Budget Reconciliation Act of 1990, as amended, requires that the Nuclear )

Regulatory Commission (NRC) 9 cover approximately 100 percent of its budget autnority, less the appropriation from the Nuclear Waste Fund, for Fiscal Years 1991 through 1999 by assessing license and annual fees. For FY 1999, the NRC must collect approximately $449.6 million i

through these fees. '

l In order to comply with the law, the Commission is amending its fee regulations in 10 CFR Parts 170 and 171. The final amendments to 10 CFn Part 170 will continue the Commission's initiatives to more appropriately recover costs for additional activities through 10 CFR Part 170 license and inspection fees rather than through 10 CFR Part 171 annual fees. The final amendments will also revise the professional hourly rates and " flat" licensing fees to reflect the l

costs of providing NRC licensing services to applicants and licensees.

The final amendments to 10 CFR Part 171 will establish the amount of the FY 1999 annual fees to be assessed to operating reactors, fuel cycle licensees, transportation certificate holders, and materials licensees consistent with the Commission's 1995 commitment (60 FR 32225) to reestablish annual fees if there if a substantial change in the total NRC budget or the magnitude of the budget allocated to a specific class of licensees. This will result in the FY 1999 annual fees decreasing for operating reactors and certain other licensees based on reduced budgeted costs for those classes of licensees. However, the annual fees will increase for some classes of licensees due to increased budgeted costs for those classes and decreases in the number of licensees in those classes.

For certain classes of licensees, the anraal fee increases will be significant. Therefore, the Commission presented in the proposed rule two optional annual fee methods for FY 1999 public comment: 1) establish the annual fees without a cap on fee increases; or 2) establish the annual fees with a cap so that no licensee's annual fee increases more than 50 percent from FY 1998. The comments received on the proposed rule did not provide overwhelming support for establishing annual fees with a cap. The Commission has decided to establish the 1999 fees without a cap on fee increases. While the NRC is sensitive to the effects the reestablished annual fees will have on those licensees with significant increases, establishing new annual fees without a cap on the increase results in a fair and equitable allocation of costs among licensees.

Those NRC licensees that can qualify as a small entity under the NRC's size standards will continue to be eligible to pay reduced annual fees.

.7 2

Enclosed is a copy of th6 final rule which is being transmitted to the Federal Register for publication. The final rule will become effective 60 days after publication.

Sincerely, N&

Shirley Ann Jackson

Enclosure:

Final Revision to 10 CFR Parts 170 and 171 cc: Representative John M. Spratt, Jr.

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a 4 UNITED STATES p- \ NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 2066f4001

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/ June 5, 1999 c m The Honorable Pete V. Domenici, Chairman Committee on the Budget United States Senate Washington, DC 20510

Dear Mr. Chairman:

The Omnibus Budget Reconciliation Act of 1990, as amended, requires that the Nuclear Regulatory Commission (NRC) recover approximately 100 percent of its budget authority, less the appropriation from the Nuclear Waste Fund, for Fiscal Years 1991 through 1999 by assessing license and annual fees. For FY 1999, the NRC must collect approximately $449.6 million through these fees.

In order to comply wlth the law, the Commission is amending its fee regulations in 10 CFR Parts 170 and 171. The final amendments to 10 CFR Part 170 will continue the Commission's initiatives to more appropriately recover costs for additional activities through 10 CFR Part 170 license and inspection fees rather than through 10 CFR Part 171 annual fees. The final amendments will also revise the professional hourly rates and " flat" licensing fees to reflect tha costs of providing NRC licensing services to applicants and licensees.

The final amendments to 10 CFR Part 171 will establish the amount of the FY 1999 annual fees to be assessed to operating reactors, fuel cycle licensees, transportation certificate holders, and materials licensees consistent with the Commission's 1995 commitment (60 FR 32225) to reestablish annual fees if there if a substantial change in the total NRC budget or the magnitude of the budget allocated to a specific class of licensees. This will result in the FY 1999 annual fees decreasing for operating reactors and certain other licensees based on reduced budgeted costs for those classes of licensees. However, the annual fees will increase for some classes of licensees due to increased budgeted costs for those classes and decreases in the number of licensees in those classes.

For certain classes of licensees, the annual fee increases will be significant. Therefore, the {

Commission presented in the proposed rule two optional annual fe9 methods for FY 1999 public I comment: 1) establish the annual fees without a cap on fee increases; or 2) establish the annual fees with a cap so that no licensee's annual fee increases more than 50 percent from FY 1998. The comments received on the proposed rule did not provide overwhelming support for establishing annual fees with a cap. The Commission has decided to establish the 1999 fees without a cap on fee increases While the NRC is sensitive to the effects the reestablished annual fees will have on those licensees with significant increases, establishing new annual fees without a cap on the increase results in a fair and equitable allocation of costs among licensees.

Those NRC licensees that can qualify as a small entity under the NRC's size standards will continue to be eligible to pay reduced annual fees.

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Enclosed is a copy of the final rule which is being transmitted to the Federal Register for publication. The final rule will become effective 60 days after publication.

. Sincerely, QUr _

Shirley Ann Jackson

Enclosure:

Final Revision to 10 CFR Pans 170 end 171 cc: Senator Frank R. Lautenberg 4

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