ML20217H569

Proposed Rule 10CFR2,140,170 & 171, Revision of Fee Schedules;100% Fee Recovery,Fy. Rule Would Amend Licensing, Insp & Annual Fees Charged to Applicants & Licensees

ML20217H569
Person / Time
Issue date:	03/24/1998
From:	Funches J NRC OFFICE OF THE CONTROLLER
To:
References
FRN-63FR16046, RULE-PR-140, RULE-PR-170, RULE-PR-171, RULE-PR-2 PR-980324, NUDOCS 9804030396
Download: ML20217H569 (116)

Text

i" DOCKET Nwegg MD RULEN #, No, /79/ 7/ 00CKETED

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'96 MfiR 26 P 2 :03 NUCLEAR REGULATORY COMMISSION OH2 . .h_

10 CFR Paris 2,140,170 and 171 [{kj,  : ,;.~jp RIN: 3150-AF 83 i

Revision of Fee Schedules; 100% Fee Recovery, FY 1998 i i

AGENCY: Nuclear Regulatory Commission. l ACTION: Proposed rule.

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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.

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@' DATES: The comment period expires (30 d:;: :Sgd!!n%.). Comments received after 4, this date will be considered if it is practical to do so, but the NRC is able to ensure only that b mw 1

$o comments received on or before this date will be considered. Because OBRA-90 requires that Of5 l' S$

NRC collect the FY 1998 fees by September 30,1998, requests for extensions of the comment /

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$0N period will not be granted.

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ADDRESSES: Mail written comments to: Secretary, U.S. Nuclear Regulatory Commission, i Washington, DC 20555-0001,' ATTN: Rulemakings and Adjudications Staff. Hand deliver i

comments to: 11555 Rockville Pike, Rockville, Maryland 20852, between 7:30 am and 4:15 pm )

l Federalworkdays. (Telephone 301-415-1678). Comments may also be submitted via the ) l NRC's interactive rulemaking website tnrough 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 CAG@nrc. gov.

Copies of comments received and the agency workpapers thn,! support these proposed changes to 10 CFR Parts 170 and 171 may be examined at the NRC Public Document Room,

?120 L Street NW. (Lower Level), Washington, DC 20555-0001. Comments received may also be viewed and downloaded electronically via the interactive rulemaning website established by the NRC for this rulemaking.

FOR FURTHER INFORMATION CONTACT: Glends Jackson, Office of the Chief Financial Officer, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, Telephone 301-415-6057.

SUPPLEMENTARY INFORMATION:

1. Background.

II. Proposed Action.

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Ill. Section-by-Section Analysis.

IV. EnvironmentalImpact: Categorical Exclusion.

V. Paperwork Reduction Act Statement.

VI. Regulatory Analysis.

Vll. Regulatory Flexibility Analysis.

Vill. Backfit Analysis.

l. 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 reguistory costs not recovered through 10 CFR Part 170 fees.

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o On April 12,1996 (61 FR 16203), the NRC published its final rule establishing the

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, i l licensing, inspection, and annual fees necessary for the NRC to recover approximately 100 l

percent of its budget authority for FY 1996, less the appropriation received from the Nuclear 1

Waste Fund. Several changes to the fees assessed for FY 1996 were adopted by the NRC.

l These changes were highlighted in this final rule (61 FR 16203; April 12,1996) and bear on the )

l approach for establishing annual feen set forth in this proposed rule.

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11. Proposed Action i

I The NRC is proposing to amend its licensing, inspection, and annual fees to recover approximately 100 percent of its FY 1998 budget authority, including tae budget authority for its Office of the inspector General, less tiie appropriations received from the NWF and the General j l

Fund. For FY 1998, the NRC'r budget authority is $472.8 million, of which $15.0 million has {

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been appropriated from the NWF. In addition, $3.0 million has been appropriated from the l General Fund for achv:1ies related to commercial vitritication of waste stored at the Department l

l of Energy Hanford, Washington site, and for the pilot program for the extemal regulation of the l

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Department of Energy. The FY 1998 appropriation language states that the $3.0 million l

appropriated for regulatory reviews and other activities pertaining to wasts stored at the Hanford, Washington site and activities associated with the pilot program for external regulation L

l of the Department of Energy shall be excluded from license fee revenues notwithstanding 42 l

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U.S.C. 2214. Therefore, NRC is required to collect approximately $454.8 million in FY 1998 I through 10 CFR Part 170 licensing and inspection fees and 10 CFR Part 171 annual fees.

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I The total amount to be recovered in fees for FY 1998 is $7.5 million less than the 4

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l l umount 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 l' receipts, compared to $95.2 million in FY 1997. The remaining $360.2 million would be 1

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.

1 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 l

ceased operations on February 13,1998. In addition, both the Haddam Neck Plant and the Maine Yankee Plant ceased operations during cY 1997 and therefore are not subject to the FY 1998 annual fees. This is equivalent to a reduction of 2.5 power reactors subject to the FY I

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 (orior to rounding) annual fees. Because this is a slight increase, after rounding the proposed FY 1998 annual fees for many fee categories l I

are the same as the final (rounded) FY 1997 annual fees. The chan9e to the annual fees is described in more detailin Section B. The fo, lowing examples illustrate the changes in annual fees:

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l FY 1997 FY 1998

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0 Class of Licensees Annual Fee P_ronosed Annual Fee Power Reactors $2,978,000 $2,980,000 Nonpower Reectors 57,300 57,300 l

Hi9h Enriched Uranium Fuel 2,606,000 2,607,000 i Facility l Low Enriched Uranium Fuel 1,279,000 1,280,000 Facility i

UF. Conversion Facility 648,000 649,000 i

Uranium Mills 61,800 61,800 Tvoical 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 i

i Because the final FY 1998 fee rule will be a " major" final action as defined by the Small Business Regulatory Enforcement Faimess Act of 1996, the NRC's fees for FY 1998 would i

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 j 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 6

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. , 1 rate in FY 1998. Those n aterials 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 msiling the final rule ic !! I licensees. In addition to publication in the Federal Register, the final rule will be available on the intemet 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, l

Office of the Chief Financial Officer, at 301-415-7654. 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 l 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 1

previously oetermined that both storage options are considered safe and acceptable forms of storage for spent fuel. Under current fee regulations, Part 50 licensees in decommissioning 4

whc store spent fuel in the spent fuel pool are not assessed an annual fee, but licensees who store spent fuelin an ISFSI under Part 72 are assessed an annual fee. The NRC will review

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this policy as part of the overall study of the issues related to annual fees for licensees in I decommissioning.

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Tne NRC is also proposing to n;ake 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. Imoert and Exoort Licenses. and Other Reaulatorv 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 5170.12(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 whien 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 al! of the tre sident 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.

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(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. 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. i Second, the NRC proposes to revise $170.12(h) to include credit cards as an additional method of payment, and to provide add!tionalinformation on electronic payments. Credit card l 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.

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Third, the NRC propot;es that the two professional hourly rates established in FY 1997 in $170.20 be revised based on the FY 1998 budget. These proposed rates would be based on the FY 1998 direct FTEs and the F'Y 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 dircet FTE) forthe reactor program. This rate would be applicable to all activities for which fees are based on full cost under $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 $170.31 of  !

the fee regulations. In the FY 1997 final fee rule, these rates were $131 and $125, respectively. The decreat,e 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 spectTic 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 es overhead.

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Fourth, the NRC proposes to adjust the current Part 170 licensing fees in 69170.21 and 170.31 to reflect the revised hourly rates.

In summary, the NRC is proposing to:

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(1) Assess Part 170 fees to recover costs for all of the resident inspectors' official duty time I

(i.e, excluding leave) and costs incurred within 30 days after issuance of an inspection

report.

i (2) Offer additional payment methods for 10 CFR Part 170 fees.

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(3) Revise the two 10 CFR Part 170 hourly rates.

(4) Revise the licensing (application and amendment) fees assessed under 10 CFR Part l

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 j 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 houriy rate.

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. . l 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 es the costs are expended. However, NRC plans to progress bill for l l

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 licenses 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 i

inspection costs at a specified interval. Once that system is available, the NRC intends to  ;

i 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, i

B. Amendments to 10 CFR Part 171: Annual Fees for Reactor Ooeratina Licenses. and i

Fuel Cvcie Licenses and Materials Licenses. Includina Holders of Certificates of Comoliance.

Reaistrations. and Quality Assurance Proaram Anorovals and Govemment Aoencies Licensed '

i byNRC l The NRC proposes four amendments to 10 CFR Part 171.

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• e Finst, the NRC proposes to amend $171.13 to delete specific fiscal year references.

i Second, the NRC proposes to amend $$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 I

(plus or minus) in NRC's total budget authority unless there was a substantial change in the  !

l 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 j licensees paying the fees.

I 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 l new baseline fees was not warranted for FY 1997. Based on a change in the distribution  ;

l between Parts 170 and 171 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 j 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 ir. FY 1997, the NRC made an adjustment to recognize that all fees billed in a fiscal year are not collected in that year.

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r As indicated in the FY 1995 final rule, because there has not been a substantial change in the NRC budget or in the maOnitude 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.

i 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 l 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 j 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 sudget for the l FY 1998 bud 9et. 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.

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TABLEI Calculation of the Percentaae Change to the FY 1997 Annual Fees (Dollars in Millions) l FY97 FY98 Total Budget $476.8 $472.8 Less NWF -11.0 -15.0 Less General Fund (Hanford Tanks, Pilot for _.-15_ -1Q Regulation of DOE) l Total Fee Base $462.3 $454.8 Less Part 170 Fees 95.2 94.6 i Less other receipts Part 171 Fee Collections Required $367.1 $360.2 l

Part 171 Billina Adiustment Small Entity Allowance 5.0 5.8 l

Unpaid FY 1997 invoices 3.0 3.9 I

Payments from prior year invoices . -2.0 -3.2 Subtotal _ _fLQ 6.5 Total Part 171 Billing $373.1 $366.7 15

'These adjustments are neces'sary 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. Ni 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 concoming 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, $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 16

on electronic payments. Credit card payments would be accepted for small dollar payments.

Electronic payments may be rnade 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 i

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 l

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, charping 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 l receipts and the number of licensees paying annual fees.

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in addkion to the amendment to 10 CFR Parts 170 and 171, the NRC is proposing conforming amendments to ib CFR Parts 2 and 140 to include the additional methods of payments provided in 10 CFR Part's 170 and 171.

Ill. 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 1 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 I

Paragraphs (a)(5) and (c) would be revised to delete references to payment instructions.

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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 3

provide additional methods of payments, such as Automated Clearing House and credit cards.

l 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).

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Paragraph (h) would be revised to provide additional rnethods of payment for fees assessed under 10 CFR 170 and to clarify that payment should be made in U.S. funds.

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Section 170.20 Average Cost per Professional Staff Hour. I 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 I activities whose fees are based on full cost under $170.21 would be 5124 per hour, or

$219,901 per direct FTE. The NRC nuclear material and nuclear waste direct staff-hour rate for I all materials activities whose fees are based on full cost under ji70.31 would be $121 per hour, i

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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 l Fund. The NRC has continued the use of cost center concepts established in FY 1995 in l 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, whic,h 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.

TaNe il FY 1998 Budget Authority to be included in Hourly Rates 20 I

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(Dollars in millions)

Reactor Materials Proaram Proaram Direct Program Salaries & Benefits $103.9 $20.5 Overhead Salaries & Benefits, $55.3 $14.8 Program Travel and Other Support Allocated Agency Management and Support $101.7 321Q 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 $124 $121 1

FTE divided by 1,776 hours0.00898 days <br />0.216 hours <br />0.00128 weeks <br />2.95268e-4 months <br />) '

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 21

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 hours0.00898 days <br />0.216 hours <br />0.00128 weeks <br />2.95268e-4 months <br />) as indicated in the revised OMB l

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 dollaO. This rate is calculated by dividing the cost per direct FTE ($214,185) by the number of productive hours in one year (1,776 hours0.00898 days <br />0.216 hours <br />0.00128 weeks <br />2.95268e-4 months <br />).

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 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.

i 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.

l 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 i hourly rate, as shown in $170.20, for the reactor program .and any direct program support (contractual services) costs expended by the NRC, Any professional hours expended on or 1

22 I i

after the effective date of the final rule will be assessed at the FY 1998 hourly rite for the reactor program, as shown in $170.20. The fees in $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 $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 f 23 l

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 $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 24

)

1 j

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.

I 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 enteria specified in $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 Complianco, Holders of Sealed Source and Device Registrations, Holders of Quality Assurance Program Approvals, and Govemment 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 1

25 1

. o entity using NRC Form 526. The NRC will continue to assess two fees for licensees that qualify as small entities under the NikC'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 govemmentaljurisdictions with a population ofless than 20,000. No l 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 l licensees, including Govemment 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 Ranoes Cateoorv of License AnnualFees Part 70 - High $2,607,000 26 1

I enriched fuel facility Part 70 - Low $1,280,000

{

(

enriched fuel facility j t

Part 40 - UF, $649,000 l

conversion facility Part 40 - Uranium $22,300 to $61,800 recovery facilities Part 30 - Byproduct $490 to $23,500' Material Licenses Part 71 - Transportation $1,000 to $78,900 of Radioactive Material Part 72 -Independent $283,000 Storage of Spent Nuclear Fuel l

' Excludes the annual fee for a few military " master" materials licenses of broad-scope issued to l Govemment agencies, which is $421,000.

i f

f '

27

Footnote 1 of 10 CFR 171.16(d) would be amended to provide a waiver of the annual fees for materials licensees, s'nd holders of certificates, registrations, and approvals, who either l

l 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 1

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 $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 i

final rule), affected materials licensees are subject to the annual fee in effect on the anniversary I

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.

j 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 28

licensees in FY 1998 towa'rd 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 originai 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 29

1998. Those tr.aterials 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.

l 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 l

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. EnvironmentalImpact: 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 I 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.

I 30 1

l l

l l

V. Paperwork Reduction Act Statement q

)

l This proposed rule contains no information collection requirements and, therefore, is not I

subject to the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

VI. Regulatory Analysis A

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 guidelities. 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 Televnion Association. Inc. v. United States. 415 U.S. 36 (1974) and Federal Power Commission v. New Enaland Power Comoany. 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 lOAA 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 Broadematers 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 Cacital Cities Communication. Inc. v. Federal CominuricationtCp.mmission,554 F.2d 1135 (D.C. Cir.1976). These decisions of the Courts enabled the Commission to develop fee guidelines that are still used for cost recovery and fee development purposes.

31

The Commission's fee guidelines were upheld on August 24,1979, by tno U.S. Court of Appeals for the Fifth Circuit in fininingj PoweLaud L!aht Cgd U.S. Nuclear Raoulatory Commisalon. 601 F.2d 223 (5th Cir.1979), sed. denit.d 444 U.'S.1102 (1980). The Court held that-(1) The NRC had the authority to recover the fu!! cost of providing services to identifiable beneficiaries; I

(2) The NRC could properly assess a fee for the costs of poviding routine inspections necessary to ensure a licensee's compliance with the Atomic iEnergy Act and with applicable regulations; (3) The NRC could charge for costs incurred in conducting environmerital 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 l

(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 32

]

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 l

percent fee recovery requirement fer NRC through FY 1998. To accomplish this statutory requirement, the NRC, in accordance with $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 end 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, Waahington arte, and the pilot program pertainin0 to external regulation of the Department of Energy; l

l (2) The annual fees shs',1, 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, l 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 ($1 FR 33224; September 18,1986), was challenged and upheld in its 33

I o

entirety in Florida Power and Liaht Comoany 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 Sianal v. NRC. 988 F.2d 146 (D.C. Cir.1993).

Vll. 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. .

i 34 1

1

Vill. Backfit Ana!ysis 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, Intergovemmental relations, Non-payment penalties, Nuclear materials, Nuclear power plants and rentors, Source material, Special nuclear material.

35

10 CFR Part 171 - Annual charges, Byproduct material, Holders of certificates, registrations, approvals, Intergovemmentai relations, Non-payment penalties, Nuclear l

l 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 l 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 l

1. Tha authority citation for Part 2 continues to read as follows:

Authority: Sees. 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); l 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, 36

83, Stat. 444, as 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 j

4 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 l 2.800 and 2.808 also issued under 5 U.S.C. 553. Section 2.809 also issued under 5 U.S.C.

l 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). l Appendix B also issued under sec.10, Pub. L.99-240,99 Stat.1842 (42 U.S.C. 2021b et seq.).

2. In $2.205, paragraph (i) is revised to read as follows:

32.205 Civil oenalties.

(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 37

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:

1 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 $140.7, paragraphs (a) and (c) are revised and paragraph (d) is added to read as follows:

6140.7 Fees.

(a)(1) Each reactor licensee shall pay a fee to the Commission based on the following schedule:

38

a .

. o (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; i

(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.

l (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; '

l (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; 1

(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 l the statutory limit of liability the amount of financial protection required of the licensee. In the case of licensees subject to the provision of $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 instaneet in which a certified financial statement is provided as a guarantee of payment of deferred premiums in accordance with j140.21(e), a fee of $1,000 or the indemnity fee, whichever is greater, is required.

39 i l

(c) Each person licensed to possess and use plutonium in a plutonium processing and t fuel fabrication plant shall pay to the Commission a fee of $5,000 per year for indemnification.

i l 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 l 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 ccrd payments.

PART 170 - FEliiS FOR FACILITIES, MATERIALS, IMPORT AND EXPORT LICENSES, AND OTHER REGULATORY SERVICES UNDER THE ATOMIC ENERGY ACT OF 1954, AS AMENDED l

l S. The authority citation for Part 170 continues to read as follows:

i Authority: 31 U.S.C. 9701,96 Stat.1051; sec. 301, Pub. L.92-314,86 Stat. 222 (42 l l

U.S.C. 2201w); sec. 201, Pub. L. 93-4381,88 Stat.1242, as amended (42 U.S.C. 5841); sec.

40

I 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:

617012 Payment of fees.

1 l

(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 l

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.

l (3) Fees for resident inspectors' time and far specific inspections subject to full cost recovery will be billed on a quar 1erly basis and are payable upon notification by the 41

Commission.

(h) Method of payment. License fee payments, made payable to the U.S. Nuclear l

l Regulatory Commission, are to be made in U.S. funds by check, draft, meney order, credit l card, or electronic funds transfer such as ACH (Automated Clearing House) using EDI 1

l (Electronic Data Interchange). Where specific payment instructions are provided on the invoices to applicants and licensees for services rendered, payment should be made l 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 i

and amendment fees are to be paid in a similar manner using the above methods. Applicants and licensses 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.

L 7. Section 170.20 is revised to read as follows:

6170.20 Avermos cost oer orofessional staff-hour.

l l- Fees for permits, licenses, amendments, renewals, special projects, Part 55 requalification and replacement examinations and tests, other required reviews, approvals, and 42

f l

. a l

l inspections under 9$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:

1 l

Reactor Program $124 per hour i

($170.21 Activities)

Nuclear Materials and $121 per hour Nuclear Waste Program

($170.31 Activities)

8. In $170.21, the introductory text, Category K, and footnotes 1 and 2 to the table are revised to read as follows:

6170.21 Schedule of fees for oroduction and utilization facilities. review of standard referenced desian aoorovals. soecial orojects. insoections and imoort and exoort licenses. l l

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.

l SCHEDULE OF FACILITY FEES i

43

I i (See footnotes at end of table)

Facility Categories and Type of Fees Feesitar i

..... l 1

l l

l l

K. Import and export licenses:

l 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). j l

l Application-new license . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,900 i Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,900 1

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 44 I

. 4

3. Application for export of components requiring foreign govemmer.t assurances only.

l Application-new license . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,800 l Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,800 l

4. Application for export of facility components and equipment not requiring Commissioner review, Executive Branch review, or foreign government i 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

' Fees will not be charged for orders issued by the Commission pursuant to $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., $$50.12,73.5) and any other sections now or hereafter in effect regardless of whether the 45 l

l i

f

+ e

. e approvalis its 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 licenso will be determined through that period when authority is granted for full power operation. If a situation arisos 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.

8 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 i

established by the June 20,1984, and July 2,1990, rules but are still pending completion of the d review, the cost incurred after any applicable ceiling was reached through January 29,1989, wili 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 $170.20, as appropriate, except for topical reports whose costs exceed $50,000. Costs which exceed l $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 l

the applicant. Any professional hours expended on or after August 9,1991, will be assessed at the applicable rate established in $170.20. In no event will the total review costs be less than .

twice the hourly rate shown in $170.20.

9. Section 170.31 is revised to read as follows:

6170 31 Schedule of fess for materials licenses and other reaulatory services. includino insoections. and imoort 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)

Cateaorv of materials licenses and tvoe of fees' Ene' *

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 47

U-235 in unsealed form or 200 grams or more of U-233 in unsealed form. Thir. includes applications to terminate licenses as well as licenses authorizing possession only:

License, Renewal, Amendment . . . . . . . . . , . . . . . . . . . . . . Full Cost i nspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 materialin sealed sources contained in devices used in industrial measuring systems, including x-ray fluorescence analyzers:' 1 Application - New license . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5560 Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $320 D. All other special nuclear material licenses, except licenses I authorizing special nuclear material in unsealed form in combination that would constitute a cndcal quantity, as defined in $150.11 of this chapter, for which the licensee shall pay the same fees as those 48

for Category 1A:*

Application - New license . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5750 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 materialin 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:

49

I License, Renewal, Amendment . . . . . . . . . . . . . . . . . . . . . . Full Cost l

l Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Full Cost l

(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 l

Category 2.A.(1).

License, renewal, amendment . . . . . . . . . . . . . . . . . . . . . . . Full Cost inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Full Cost l

(3) Licenses that authorize the receipt of byproduct material, as defined i 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 l

1 B. Licenses which authorize the possession, use and/or installation of source material for shielding:

l Application - New license . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5120 50

i . .

l Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $280 C. All other source materiallicenses:

i Application - New license . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,600 l l

Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $560 j

3. Byproduct material:

A. Licenses of broad scope for possession and use of byproduct material issued pursuant to Parts 30 and 33 of this chapt.er for processing or manufacturing of items containing byproduct i material for commercial distribution:

l Application - New license . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,800 Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $530 i

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 51 l

C. Licenses is3ued pursuant to $$32.72,32.73, and/or 32.74 of this

(-

chapter authorizing the processing or manufacturing and distribution or redisfribution of radiopharmaceuticals, generators, l

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 Amend ment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......$630 D. Licenses and approvals issued pursuant to $$32.72,32.73, and/or 32.74 of this chapter authorizing distribution or redistribution of radiopharmaceuticals, generators, reagent kits and/or sources or devices not involving processing of byproduct material. This category includes licenses issued pursuant to $$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 l Amendment . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $420 52

(

! E. Licenses for possession.and use of byproduct material in sealed sources fcr 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 includos underwater irradiators for irradiation of materials where the source is not exposed for irradiation purposes.

Application - New license . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,900 Am e nd me nt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 544 0 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 i materials where the source is not exposed for irradiation purposes.

Application - New license . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,500 Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5740 53 l

l 1

l .

H. Licenses issued punsuant to Subpart A of Part 32 of this chapter to 1 .

distribute items containing byproduct material that require device i 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 l

l 1

1, Licenses issued pursuant to Subpart A of Part 32 of this chapter to i distribute items containing byproduct material or quantities of l byproduct material that do not require device evaluation to persons l t  !

l exempt from the licensing requirements of Part 30 of this chapter, except for specific licenses authorizing redistribution of items that l have been authorized for distribution to persons exempt from the licer. sing requirements of Part 30 of this chapter-t l Application - New license . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,400 i

Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 I

l 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 54 i

Part 31 of this chapter, except specific licenses au'.horizing redistribution of items that have been authorized for distribution to i

persons generally licensed under Part 31 of this chapter: l

. i l

l Application - New license . . . . . . . . . . . . . . . . . . . . . . . . . C 1,7 00 1

1 Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $300 l i

i i

K. Licenses issued pursuant to Subpart B of Part 32 of this chapter to distribute items containing byproduct material or quantities of l

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 l

been authorized for distribution to persons generally licensed under Part 31 of this chapter:

i Application - New license . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $340 i L. Licenses of broad scope for possession and use of byproduct i materialissued pursuant to Parts 30 and 33 of this chapter for i research and development that do not authorize commercial distribution: 1 Application - New license . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,400 55 l

l

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 Ame nd me nt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6 2 0 i

I N. Licenses that authorize services for other licensees, except:

i l

l (1) Licenses that authorize only calibration and/or leak testing i 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5500 O. Licenses for possession and use of byproduct materialissued pursuant to Part 34 of this chapter for industrial radiography operations:

Application - New license . . . . . . . . . . . . . . . . . . . . . . . . $4,3 00 56

l . .

Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $G80 P. All other specific byproduct material licenses, except those in Categories 4A through 9D:

Application - New license . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $730 Ame ndment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $34 0

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 I reactors; or licenses for receipt cf 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 57

I c .

. . 1 i

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 Amend me nt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $520 C. Licenses specifically authorizing the receipt of prepackaged waste 1

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:

1 Application - New license . . . . . . . . . . . . . . . . . . . . . . $2,2 00 t

Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5220 l

5. Weillogging:

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 58

l o .

I B. Licenses for possession and use of byproduct material for field I l

flooding tracer stu' dies:

License, renewal, amendment . . . . . . . . . . . . . . . . . . . . . . . Full Cost

6. Nuclear laundries: 1 J

A. Licenses for commercial collection and laundry of items l; l

contaminated with byproduct material, source material, or special nuclear material:

l l

Application - New license . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,400  !

I Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000 )

7. . Medicallicenses:

1 I

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,500 I

Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $390 B. Licenses of broad scope issued to medical institutions or two or 1

59 l

I 1

1

)

more physicians pursuant to Parts 30,33,35,40, and 70 of this chapter authorizin'gresecrch and development, including human use l

l of byproduct material, except licenses for byproduct material, source j material, or special naciear material in sealed sources contained in teletherapy devices:

1 Applicatiori - New license . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,800 l

l Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...........$710 {

l 1

C. Other licenses issued pursuant to Parts 30,35,40, and 70 of this j chapter for human use of byproduct material, source material, and/or special nuclear material, except licenses for byproduct material, l source material, or special nuclear material in sealed sources contained in teletherapy devices:

Application - New license . . . . . . . . . . . . . . . . . . . . . . . . . . 51,800 Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . $4 50

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 60

Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $400

9. Device, product, or sealed source safety eva!uation: .

A. Safety evaluation of devices or products containing typroduct material, source material, or special nuclear material, except reactor fusi 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 . . . . . . . . . . . . . . . . . . . . . . . . . . 52,100 Amendment - each device . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,100 i

C. Safety evaluation of sealed sources containing byproduct material, source rnaterial, or special nuclear material, except reactor fuel, for commercial distribution:

Application - each source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $910 61

l 1

I 1

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 i

B. Evaluation of 10 CFR Part 71 quality assurance programs:  !

Application - Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $340 1

Ame ndment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $620 I Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Full Cost

11. Review of standardized spent fuel facilities: I 62 1 1

1 1

1 i

I l Approval, Renewal, Amendment . . . . . . . . . . . . . . . . . . . . Full Cost inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Full Cost i

12. Special projects: 5 1

Approvals and preapplication /

l Licensing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Full Cost inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Full Cost i

13. A. Spent fuel storage cask Certificate of Compliance:

Approvels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Full Cost Amendments, revisions, and supplements . . . . . . . . . . . . . Full Cost Reapproval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Full Cost B. Inspections related to spent fuel storage cask Certificate of C ompliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Full Cost C. Inspections related to storage of spent fuel under $72.210 of this chapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Full Cost

14. Byproduct, source, or special nuclear material licenses and other l approvals authorizing decommissioning, decontamination, reclamation, or site restoration activities pursuant to 10 CFR Parts 30,40,70, and 72 of 63 l

l

l l

. +

l l

this chapter:

l Approval, Renewal, Amendment . . . . . . . . . . . . . . . . . . . . . Full Cost i

inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Full Cost j i

I i

15. Import and Export bcenses:

Licenses issued pursuant to 10 CFR Part 110 of this chapter for the i I

import and export only of special nuclear material, source material, tritium j and other byproduct material, heavy water, or nuclear grade graphite. l i

l A. Application for export or import of high enriched uranium and other l

materials, including radioactive waste, which must be reviewed by l the Commissioners and the Executive Branch, for example, those 1

actions under 10 CFR 110.40(b). This category includes application i

for export or import of radioactive wastes in multiple forms from j 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,900 Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,900 B. Application for export or import of special nuclear material, source 64

material, tritium and other byproduct material, heavy water, or nuclear grade grahite, 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 1 generator in the exporting country to a single treatment, storage and/or disposal facility in the receiving country. I 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 govemment assurances under the Atomic Energy Act.

l Application-new license . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,800 i Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,800

. D. Application for export or import of other materials, including radioactive weste, not requiring Commissioner review, Executive Branch review, or foreign govemment 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 er 65

1 similar parties, requiring only confirmation from the receiving facility 1

and licensing authorities that the shipments may proceed recording )

l 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 govemments.

Amendment . . . . . .............. ... ..............$180 i I

i

16. Reciprocity:  !

Agreement State licensees who conduct activities under the reciprocity provisions of 10 CFR 150.20.

Application (initial filing of Form 241 ) . . . . . . . . . . . . . . . . . . . $ 1,100 Revisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $200 Tvoes of fees - Separate charges, as shown in the schedule, will be sssessed for preapplication consultations and reviews and applications for new licenses 66

and approvals, issuance of new licenses and approvals, amendments and certain renewals to existing lice)nses and approvals, safety evaluations of sealed sources and devices, and certain inspections. The following guidelines apply to these charges:

(a) Apphcation fees Applications for new materials licenses and l

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 scurce material must be accompan'ed by the prescribed application fee for the highest fee category.

L (b) License /anoroval/ review fees Fees for applications for new licendes and approvals and for preapplication consultations and reviews subject to full cost fees (fee Categories 1 A,1B,1E,2A,4A,5B,10A,11,12,13A, and 14) are i .e upon notification by the Commission in accordance with $170.12(b), (e), and (f).

1 (c) Renewal /reapproval fees Applications subject to full cost fees (fee Categories 1 A,1B,1E,2A,4A,58,10A,11,13A, and 14) are due upon 67 l

r notification by the Commission in accordance with $170.12(d).

(d) Amendment / Revision Fees.

l l

l (1) Applications for amendments to licenses and approvals and i revisions to reciprocity initial applications, except those subject to fees assessed 1

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 l approval classified in more than one fee category must be accompanied by the prescribed amendment fee for the category affected by the amendment unless e

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 1 A,1 B,1E, 2A. 4A, 5B,10A,11, 12,13A, and 14), amendment fees are due upon notification by the Commission in accordance with $170.12(c).

l (2) An application for amendment to a materials license or approval that l would place the license or approval in a higher fee category or add a new fee category rnust be accompanied by the prescribed application fee for the new category.

l (3) An application for amendment to a license or approval that wouki 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.

68

(4) Applications to terminate licenses authorizing small materials programs, when no dismantling or decontamination procedure is required, are not subject to fees.

(e) Insoection 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 l

determined based on the professional staff time required to conduct the inspection multiplied by the rate established under $170.20 plus any applicable contractual support services costs incurred. inspection fees are due upon notification by the Commission in accordance with $170.12(g).

8 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 i

these types of Commission orders. However, fees will be charged for apprevals l

issued under a specific exemption provision of the Commission's regulations l 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 i shown in Categories gA through 9D. l l

8 Full cost fees will be determined based on the professional staff time and 6g

= .

1 appropriate contractual support services expended. For those spplications 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 l

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 $170.20, as appropriate, axcept 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 $170.20. The minimum total review cost is twice the hourly rate shown in $170.20.

• 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 I

sources authoted by the license. Applicants for new licenses that cover both byproduct material and special nuclear material in sealed sources for use in 70

gauging devices will pay the appropriate application fee for fee Category 1C only.

i l

8 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 attemate 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. l 1

i 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.

71 l

l

10. The authority citsilon 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 amenced (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:

4171.13 Notice.

The annual fees applicable to an operating reactor and to a materials licensee, including a Govemment agency licensed by the NRC, subject to this part and calculated in accordance with $$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 $171.19 except as provided in $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 $$171.15 end 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 72

would be assessed based on the rates in effect for the previous fiscal year.

12. In $171.15, paragraphs (b), (c) introductory text, (c)(1), (c)(2), (e),

l and (f) are revised to read as follows:

8171.15 Annual Fees Reactor operatina 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 chenges 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. Tre 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

, insoection activities recovered under 10 CFR Part 170 of this chapter.

l 73 4

(2) Research activities directly related to the regulation of power l

reactors.

(3) Generic activities required largely for NRC to regulate power i 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:

l (1) Activities not attributable to an existing NRC licensee or class of I

licensees; e.g., reviews submitted by other govemment agencies (e.g., DOE) that do not result in a license or are not associated with a license; intomational cooperative safety program and intemational safeguards activities; low-level l

waste disposal generic ottivities; 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 I inspections conducted of nonprofit educational institutions, and costs that would l

not be collected from small entities based on Commission policy in accordance l

with the Regulatory Flexibility Act.

l l

l (e) The FY 1998 annual fees for licensees authorized to operate a 74

l . .

1 nonpower (test and research) reactor licensed under Part 50 of this chapter, except for those reactors exempted from fees under $171.11(a), are as follows:

I Research reactor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $57,300 Test reactor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 557,300 (f) For each fiscal year, annual fees for operating reactors will be l l

calculated and assessed in accordance with $171.13.

l

13. In $171.16, the introductory text of paragraph (c) and paragraphs (c)(1), (c)(4), (d), and (e) are revised to read as follows:

6171.16 Annual Fees: Materials Licensees. Holders of Certificates of Comoliance. Holders of Sealed Source and Device Reaistrations. Holders of Quality Assurance Proaram Acorovals and Government Aaencies Licensed by the NRC l .....

l l

(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 l provides the Commission with the proper certification, the licensee may pay j t

i reduced annual fees for FY 1998 as follows: i i

75 l i

i

I 1

Small Businesses Not Enoaoed Maximum Annual Fee 10.Manu'acturino and Small .

Per Licensed Cateoorv Not-For-Profrt Oroanizations (Gross Annual Receints)

$350,000 to $5 million . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,800 Less than $350,000 .................... ............................ $400 l Manufacturino entities that have an avermoe of 500 emolovees or fess 35 to S00 employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,8 00 Less than 35 employees . . . . . . . . . . . . . . . . . . . . . ... .......... ........ $400 Small Governmental Jurisdictions (includino DublicIV suooorted educationalinstitutions)

(Pooulation) 20,000 to 50,000 . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,800 Le ss tha n 2 0,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $400 EducationalInstitutions that j gre not State or Publicly '

Sucoorted. and have 500 Emolovees or Less.

1 35 to S00 employees . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,800 j 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).

l I

(4) For FY 1998, the maximum annual fee a small entity is required to j 76

1

.v .

pay is $1,800 for each category applicable to the license (s).

' (d) The FY 1998 annual fees for materials licensses 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 tne 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 A 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) l 77 i l

i I

l - .

Cateoorv of materials licenses Annual r-aggt2 8 l

l

1. Special nuclear material:

1 l

A.(1) Licenses for possession and use of U-235 or plutonium for fuel fabrication activities.

(a) Strategic Special Nuclear Material:

i Babcock & Wilcox SNM-42 . . . . . . . . . . . . . . . . $2,607,000 ,

Nuclear Fuel Services SNM-124 . . . . . . . . . . . . $2,607,000 I

(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 l Siemens Nuclear Power SNM-1227 . . . . . . . . . . $1,280,000 L Westinghouse Electric Company SNM-1107. . . . $1,280,000 l

t (2) All other special nuclear materials licenses not l included in Category 1.A.(1) which are licensed for l i

l I

fuel cycle activities, j i

i 78 l

r

• e l - '

l l

(a) Facilities with limited operations:

, B&W Fuel Company SNM-1168 . . . . . . . . . . . . . . . $509,000 i

l l

l (b) All Others: 1 l General Electric SNM-960 . . . . . . . . . . . . . . . . . . . $346,000 l

l B. Licenses for receipt and storage of spent fuel at an independent spent fuel storage installation (ISFSI). . . . . . . 3283,000 l C. Licenses for possession and use of special nuclear materialin sealed sources contained in devices used in industrial measuring systems, including x-ray l

l fluorescence analyzers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,300 l

1 D. All other special nuclear material licenses, except

(

i licenses authorizing special nuclear material in unsealed form in combination that would constitute a critical i

quantity, as defined in $150.11 of this chapter, for which I

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,607,000 79

, a l

p 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 materialin recovery operations such as milling, in-situ leaching, heap-leaching, ore buying stations, ion exchange facilities and in processing of ores containing source l 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 * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $61,800 l

Class ll facilities' . . . . . . . . . . . . . . . . . . . . . . . . . . . . $34,900 Other facilities * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,300 t

(3) Licenses that authorize the receipt of byproduct material, j 80 I

i

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 1

5 (4) Licenses that authorize the receipt of byproduct material, j i 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 l generated by the licensee's milling operations, except

! those licenses subject to the fees in Category 2.A.(2). . . . . 58,000 1

! B. Licenses which authorize only the possession, use and/or installation of source material for shielding. . . . . . . . . . . . . . . . $490 l

C. All other source material licenses. . . . . . . . . . . . . . . . . . . . . $8,700 l

i l

3. Byproduct material:

l A. Licenses of broad scope for possession and use of l

l 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 81

l B. Other licenses for possession and use of byproduct 1 .

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 $$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 i 1

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 l

D. Licenses and approvals issued pursuant to 5932.72, l 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 $$32.72,32.73 and 32.74 of 82

I 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. . . . . . 54,400 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) . . 53,200 l

l F. Licenses for possession and use of less than 10,000 ,

curies of byproduct materialin sealed sources for l

irradiation of materials in which the source is exposed '

forirradiation pur oses. This categcry also includes underwater irradiators for irradiation of materials in which the source is not exposed for irradiation purposes. . . . . . . . 53,800 G. Licenses for possession and use of 10,000 curies or more of byproduct materialin sealed sources for irradiation of materials in which the source is exposed for irradiation purposes. This category also includes underwater irr.9diators for irradiation of materials in which the source is not exposed for irradiation purposes. . . . . . . . 519,700 83

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 l

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

1. 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 l

specific licenses authoriz ag redistribution of items that have been authorized for distribution to persons exempt from the licensing requirements of Part 30 of this l

Cha pte r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,900 l

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 l

l persons generally licensed under Part 31 of this chapter, except specific licenses authorizing redistribution of I I

terms that have been authorized for distribution to persons 84

generally licensed under Part 31 of this chapter . . . . . . . . . . $3,800 K. Licenses issued pursuant to Subpart B of Part 31 of this i

! chapter to distribute items containing byproduct material or I

quantitias of byproduct material that do not require sealed l

source and/or device review to persons generally licensed under Part 31 of this chapter, except specific licenses l

authorizing redistribution of items that have been I

authorized for distribution to persons generally licensed i under Part 31 of this chapter . . . . . . . . . . . . . . . . . . . . . . . . . $3,300 1

i 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 materialissued pursuant to Part 30 of this chapter for research and development that do not authorize l

commercial distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,500 l

l N. Licenses that authorize services for other licensees, except:

(1) Licenses that authorize only calibration and/or leak l

85  !

l 1

l i

]

i i * .

l 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, l

48, and 4 C . . . . . . . . . . . . . . . . . . .~. . . . . . . . . . . . . . . . $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 tource 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 90. . . . . . . . . . . . . . . . . . . . . $1,700 I

4. Waste disposal and processing: j

\

l 1

A. Licenses specifically authorizing the receipt of waste I

byproduct material, source rnaterial, or special nuclear i material from other persons for the purpose of contingency storage or commercial land disposal by the licensee; or licenses authorizing contingency storage of l

86 t

i

l i 1 i

1 i

j j 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 )

l resutting waste and residues, and transfer of packages j l

to another person authorized to receive or dispose of 1 waste material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $102,0005 B. Licenses specifica!!y authorizing the receipt of waste byproduct material, source material, or special nuclear material from other persons for the purpose of packaging i l

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 i

C. Licenses specifically authorizing the receipt of prepackaged waste byproduct material, source material, j 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 . . . . . $r,,' OJ l 5. Welllogging:

l A. Licenses for possession and use of byproduct material, source material, and/or special nuclear material for well 87

logging, well surveys, and tracer studies other than field flooding tracer studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,200 B. Licenses for possession and use of byproduct material for field flooding tracer studies . . . . . . . . . . . . . . . . . . . . . . $13,200

6. Nuclear laundries:

A. Licenses for commercial coIIection and laundry of items contaminated with byproduct material, source material, or special nuclear material . . . . . . . . . . . . . . . . . . . . . . . . . $14,700

7. Medicallicenses:

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 Paris 30,33,35,40, and 70 of this chapter authorizing research and 88

l

. . 1

- j i

development, including human use of byproduct rr.aterial except licenses for byproduct material, source material,

(

or special nuclear material in sealed sources contained in l

teletherapy devices. This category also includes the j l

possession and use of source material for shielding when

]

authorized on the same license.' . . . . . . . . . . . . . . . . . . . . $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 j possession and use of source material for shielding when authorized on the same license.' . . . . . . . . . . . . . . . . . . . 54,700

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:

89

+

'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:

90

, A. Certificates of Compliance or other package approvals issued for design of cesks, packages, and shipping containers.

t Spent Fuel, High-Level Waste, and plutonium air packages . . . . . . . NA' l

t Other Casks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A' i

B. Approvals issued of 10 CFR Part 71 quality assurance programs.

l Users and Fabricators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $78,900 U se rs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000

11. Standardized spent fuel facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A'

12. Special Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A'

13. A. Spent fuel storage cask Certificate . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A' of Compliance.

B. General licenses for storage of . . . . . . . . . . . . . . . . . . . . . . . . . . $283,000 spent fuel under 10 CFR 72.210.

14. Byproduct, source, or special nuclear materiallicenses and other 91

.r approvals authorizing decommissioning, decontamination, reclamation, or site restoration activities pursuant to 10 CFR Parts 30,40, 70, and 72 . . . . . . . . .................................N/A 7

15. Import and Export lic.e rse s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A' l

16. Reciprocity ....... ....................................... N/A' l

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17. Master materials licenses of broadscope issued to Govemment '

agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $421,000

18. Department of Energy:  ;

A. Certificates of Compliance . . . . . . . . . . . . . . . . . . . $1,169,000' B. Uranium Mill Tailing Radiation Control Act (UMTRCA) activities . . . . . . . . . . . . . . . . . . . . . . . $1.966,000 I

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' Annual fees will be assessed based on whether a licensee held a valid license with the NRC authorizing possession and use of radicactive 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 i entirely by September 30,1997. Annual fees for licensees who filed for termination of a i license, downgrade of a license, or for a POL daring the fiscal year and for new licenses issued during the fiscal year will be prorated in accordance with the provisions of $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 92 i

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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.

l 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 l accordance with the requirements of Parts 30,40,70,71, or 72 of this chapter.

• Each fiscal year, fees for these materials licenses will be calculated and assessed in

[ accordance with $171.13 and will be published in the Federal Register for notice and comment.

• A Class I license includes milllicenses issued for the extraction of uranium from uranium ore.

i A Class ll license includes solution mining licenses (in-situ and heap leach) issued for the l

extraction of uranium from uranium ores including research and development licenses. An l

"other" license includes licenses for extraction of metals, heavy metals, and rare earths.

8 Two licenses have been issued by NRC for land disposal of special nuclear material. Once j NRC lasues a LLW disposal license for byproduct and source material, the Commission will l consider establishing an annual fee for this type of license.

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• 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.

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• No annual fee is chr2rged because it is not practical to administer due to the relatively short life or temporary nature of the license.

' Separate annual fees will not be assessed for pacemaker licenses issued to medical 93 1

1 institutions who also hold nuclear medicine licenses under Categories 7B or 7C.

" 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 (1) LLWdisposalgeneric 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; aad (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:

6171.1g Pavment.

(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 l 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 l 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 94

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 l 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 $171.13 must be paid in quarterly installments of 25 l 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 psic as billed by the NRC.

As established in FY 1996, materials license annual fees that are less than $100,000 are billed i

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 95

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l the next available monthly billing for the fee in effect on the anniversary date of the license. I I

Thereafter, annual fees for new licenses will be assessed in the anniversary month of the j

license.

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Dated at Rockville, Maryland, this!MJ day of FV1dd .1998.

For the Nuclear Regulatory Commission.

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jdisse L. Funches, Chief Financial Officer.

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l 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)

1. Backaround.

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 clarifed 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 97 i

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 l

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 1

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 concems 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 i

that hola 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 $171.16(c) of this proposed rule reflect the changes in the NRC's size standards adopted in FY 1995. A new maximum smcIl entity fee for manufacturing industries with 35 to 500 i l

employees was established at $1,800 and a lower-tier small entity fee of $400 was established i 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 perc9ntage i sdjustment 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.  !

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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 l appropriations from the Nuclear Waste Fund, for Fiscal Years (FY) 1991 through 1995 by j 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 l

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 i

the total NRC budget authority or the magnitude of the budget allocated to a specific class of j i

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 99 l

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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 l 1

1998 annual fees for all licensees at 0.1 percent above the FY 1997 exact (prior to rounding) l 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 1

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. I I

Public Law 104-121, the Contract with America Advancement Act of 1996, was signed into law on March 29,1996. Title 111 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 governmentaljurisdictions. 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.

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ll. - imnact on small entities. I t

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 indicatMhat 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.

L 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 advantags 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 101  !

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i 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-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 pec 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 medicallicensees commented that, in these times of slashed reimbursements, the proposed increase of the existing fees and the introduction of eMitional 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 102

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additional burden.

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l 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

j. registrations could be combined, indications are that other termination requests were due to the l

l economic impact of the fees.

l The NRC continues to receive written and oral comments from small materials l_ licensees. These commenters previously indicated that the $3.5 million threshold for small l

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, l even the reduced annual fee could have a significant impact on the ability of these types of

businesses to continue to operate.

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[ To alleviste the continuing significant impact of the annual fees on a substantial number l.

of small entities, the NRC considered altamatives, in accordance with the RFA. These altamatives were evaluated in the FY 1991 rule (56 FR 31472; July 10,1991), in the FY 1992 l

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 ,

i the FY 1996 rule (61 FR 16203; April 12,1996), and in the FY 1997 rule (62 FR 29194; May 29, 1997). The attematives considered by the NRC can be summarized as follows.

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Base fees on some measure of the amount of radioactivity possessed by the l licensee (e.g., number of sources),

u Base fees on the frequency of use of the licensed radioactive material (e.g.,

volume cf patients).

t Base fees on the NRC size standards for small entities.

The NRC has reexamined the FY 1991-1997 evaluations of these alternatives. Based l i

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.

I The NRC established, and will continue for FY 1998, a maximum annual fee for small l l

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 arnount 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.

1 The NRC continues to believe that the 10 CFR Part 170 license fees (application and amendment), or any adjustmerts to these licensing fees during the past year, do not have a l

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 104 1

substantial number of small entities and that the 10 CFR Part 171 maximum annual small entity l fee of $1,800 be continued.

l By maintaining the maxirnum 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 p!us surcharge) for certain small entities at $1,800 for each feo 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 feer,, 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 sman number of employees.

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l lit. Summarv.

l The NRC has determined the 10 CFR Part 171 annual fees significantly impact a l

substantial number of small entities. A maximum fee for small entities strikes a balance j 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 l

l regulatory flexibility analyses, the NRC concludes that a maximum annual fee of $1,800 for l

l small entities and a lower-tier small entity annual fee of $400 for small businesses and not-for-i profit organizations with gross annual receipts of less than $350,000, small govemmental jurisdictions with a population of less than 20,000, small manufacturing entities that have less l

l than 35 employees and educational institutions that are not State or publicly supporied 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 l been prepared by NRC and is shown as Attachment 1 to this Regulatory Flexibility Analysis.

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I ATTACHMENT 1 TO APPENDIX A l.

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U. S. Nuclear Regulatory Commission Small Entity Compliance Guide Fiscal Year 1998 l

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Contents 1

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EAGA I ntroouction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 NRC Definition of Small Entit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 NRC Small Entity Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 i

Instructions for Completing NRC Form 526 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 j l

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! 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. l l

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 threcholds 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 wi'.h 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 i

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 j standards for small entities. These size standards, developed in consultation with the Small Business Administration, were revised by the NRC and became effective on May 11,1995.

L The small entity size standards are found at 10 CFR 2.810 of the NRC's regulations. To i

j comply with the RFA, the NRC has established two tiers of small-entity fees. These fees are l found at 10 CFR 171.16(c) of the NRC's fee regulations.

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Licensees who meet NRC's size standards for a smal! entity must complete NRC Form i 526 in order to qualify for the reduced annual fee. NRC Form 526 will accompany each annual 2 ,

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fee invoice mailed to materials licensees. The completed form, along with the appropriate sma entity fee and the payment copy of the invoice, should be mailed to the U.S. Nuclear Regu Commission, License Fee and Accounts Receivable Branch, P.O. Box 054514 St. Louis, MO l

63195-4514.

NRC Definition of Small Entity f

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 concem that provides a service or a concem not engaged in manufacturing with average gross receipts of $5 million or less over ns last 3 completed fiscal years;

2. Manufacturing industry - a manufacturing concem 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 govemmental jurisdiction - a govemment of a city, county, town, township, village, school district or special district with a population of less 3  :

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I h than 50,000; 1

5. Small educational institution - an educational institution supported by a I l

qualifying small governmentaljurisdiction, or one that is not state or publicly supported and has 500 or fewer employees' 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:

i Small Business Not Engmoed Maximum Annual Fee l

in Manufacturino and Small Per ucensed i Not-For Profit Organizations Cateaorv (Gross Annual Receipig)

$350,000 to $5 million $1,800 Less than $350,000 $400

' 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 avaliable to the public.

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e r Manufacturino entities that have an avermee of 500 cmployees orless 35 to 500 employees $1,800 i Less than 35 employees 5400 S, mall Govemmental Jurisdictions (includino oubliciv suonorted educational institutions)

(Pooulation) 20,000 to 50,000 $1,800 Less than 20,000 5400 EducationalInstitutions that l are not State or Publiclv Suonorted. and have 500 Emolovees or Less '

35 to 500 employees $1,800 l

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a Less than 35 employees $400 1

1 To pay a reduced annual fee, a licensee must use NRC Form 526, enclosed with the fee 1

invoice, to certify that it meets NRC's size standards for a small entity. About 1,400 licensees i I

certify each year that they qualify as a small entity under the NRC size standards and pay a 1 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.

i Instructions for Comoletina NRC Form 526 l 1, File a separate NRC Form 526 for each annual fee invoice received.

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2. Complete all items on NRC Form 526 as follows:

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s. The license number and invoice number must be entered exactly as they appear l on the annual fee invoice.

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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 6

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E i arnend a license is to be submitted to the respective licensing staffs in the NRC Regional or Headquarters Offices.

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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.

l (3) A licensee who is a subsidiary of a large entity does not qualify as a small entity.

I (4) The owner of the entity, or an official empowered to act on behalf of the 7

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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 grranted 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 pmrated amount shown on the invoice but rather one-half of the maximum annualfee shown on NRC Form 526 for the size standard under l

which the licensee qualifies, resulting in a fee of either $900 or $200 for each fee l

category billed instead of the full small entity annual fee of $1,800 or $400.

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4. A new small entity form (NRC Form 526) is required to be filed with the NRC each fiscal  ;

l year in order to qualify for reduced %s 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 retumed 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 sma!! 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 6

, \

954514, St. Louis, MO 63195-4514. l

5. Questions regarding fee invoices may be posed orally or in wnting. Please call the l 4

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. I i

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6. False certification of small entity status could result in civil sanctions being imposed by I I

the NRC pursuant to the Program Fraud Civil Remedies Act,31 U.S.C. 380131. Agg.

NRC's implementin2 regulations are found at 10 CFR Part 13.

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