ML20236K386

Forwards Copy of 980610 FRN of Final Rulemaking Re NRC FY98 License,Insp & Annual Fees.Effective Date for Final Rule 980810.OSP Requested to Advise Agreement States of Final Rule & How to Access It & Provide Info to Licensees

ML20236K386
Person / Time
Issue date:	06/11/1998
From:	Turdici J NRC OFFICE OF THE CONTROLLER
To:	Bangart R NRC OFFICE OF STATE PROGRAMS (OSP)
Shared Package
ML20236K338	List: ML20236K336 ML20236K358 ML20236K386
References
NUDOCS 9807090299
Download: ML20236K386 (28)

Text

- _ _ _ _

pueng 1'

UNITED STATES 4

g' j

NUCLEAR REGULATORY COMMISSION o

WASHINGTON, D.C. 20065 0001 June 11, 1998 MEMORANDUM TO:

Richard L. Bangart, Director Office of State Pr FROM:

James Turdici, Direc Division of Accounting nd F' ance Office of the Chief Fin ci icer

SUBJECT:

FINAL RULE - 100 PERCENT RECOVERY - FY 1998 Attached is a copy of the June 10,1998, Federal Register Notice of Final Rulemaking relating to the NRC's FY 1998 license, inspection and annual fees. The effective date for the final rule is August 10,1998.

In the past, a Notice of Proposed Rulemaking and a Notice of Final Rulemaking on the fee rules were mailed to all Agreement States, Nonagreement States, and NRC licensees. As announced in the FY 1998 proposed fee rule, the final rule is no longer being mailed. We will continue to mail the Notice of Proposed Rulemaking. In addition to publication in the Federal Register, the final rule is available on the Intemet at http://ruleforum.llnl. gov /. Copies will also be mailed by this office upon request.

It is requested that OSP advise the Agreement States of this final rule and how to access it, and ask them to provide this information to their licensees.' The final rule will assess fees to those Agreement State licensees who perform work in Nonagreement States under the reciprocity provisions of $150.20.

Thank you for your assistance in this matter.

Attachment:

As stated

Contact:

Glenda C. Jackson, OCFO 415-6057 G85 g

w 9807090299 980619 PDR STPRQ ESQQEN PDR

Wednesday June 10,1998 l

O l

l Part 11 Nuclear Regulatory Commission 10 CFR Parts 2,140,170, and 171 Fee Schedules Revision: 100 Percent Fee Recovery (FY 1998); Final Rule l

I

' ' ~

31840 Federal Register /Vol. 63. No.111/ Wednesday, June 10,1998 / Rules and Regulations NUCLEAR REGULATORY NRC's 100 percent fee recovery approximately 30 days after issuance of COMMISSION requirement through FY 1998.

an inspection report.

The NRC aswsses two tepes of fees to

5. Implement a procedural change to 10 CFR Parts 2,140,170, and 171 secover its budget authority. First, assess fees under 58170.21 and 170.31 license and inspection fees, established for activities, such as application RIN 3150-AF 83 at 10 CFR Part 170 under the authority reviews and inspections, performed during compensated overtime. The Revision of Fee Schedules; 100 of the Independent Offices Percent Fee Recovery, FY 1998 Appropriation Act (IOAA),31 U.S.C.

compensated overtime hours will be 9701, recover the NRC's costs of billed at the norma hourly rate.

AGENCY: Nuclear Regulatory providing individually identifiable II. Responses to Comments Commission.

services to specific applicants and The NRC received and evaluated four ACTION: Final rule, licensees. Examples of the services comments on its proposed rule.

provided by the NRC for which these

. For evaluation [urposes, comments

SUMMARY

The Nuclear Regulatory fees are assessed are the review of be ed' Commission (NRC)is amending he applications for the issuance of new

[p*p'I ro riate an ad esse as s ngle licensing, inspection, and annua fees licenses, approvals or renewals, and issues in this final rule.

charged to its applicants and licensees.

amendments to licenses or approvals.

The comments are as follows.

The amendments are necessary to Second, annual fees, established in 10 implement the Omnibus Budget CFR Pan 171 under the authority of A. Relationship Between Costs and Reconciliation Act of 1990 (OBRA-90)*

OBRA-90, recover generic and other Annualfees which mandates that the NRC recover regulatory costs not recovered through

1. Comment. Two commenters, the approximately 100 percent ofits budget 10 CFR Part 170 fees.

Nuclear Energy Institute (NEI) and authority in Fiscal Year (FY) 1998, less On April 1,1998 (63 FR 16046), the Florida Power and Light Company amounts appropriated from the Nuclear NRC published a proposed rule to (FPL). Indicated that the basis for the Waste Fund (NWF). The amount to be establish the licensing, inspection, and increase in the annual fees was not secovered for FY 1998 is approximately annual fees necessary for the NRC to explained in the proposed rule. These 5454.8 million. The NRC is als recover approximately 100 percent of its commenters indicated that NRC has not providing additional payment methods budget authority for FY 1998,less the followed the Congressional directive in for civil penalties and indemmty fees. as appropriation received from the Nuclear the Conrewr.w Report on the Omnibus well as annual and licensing fees.

Waste Fund and the General Fund, and Budget' Reconciliation Act of1990 EFFECTIVE DATE: August 10,1998.

to provide additional payment methods (OBRA-90) that the annual charges, "to AooRESSES: Copies of comments for civil penalties and indemnity fees.

the maximum extent practicable, received and the agency workpapers These changes were highlighted in the reasonably reflects the cost of providing that support these final changes to 10 proposed rule (63 FR 16046; April 1, services to such licensees or classes of CFR Parts 170 and 171 inay be 1998) and have been adopted in this licensees." NEI stated that the general examined at the NRC Public Document final rule for FY 1998. The major descriptions of the activities comprising Room,2120 L Street NW (Lower Level), changes are summarized as follows:

the basis for the annual fee do not i

Washington, DC 20555-0001.

1. Adjust all 10 CFR 171 annual fees provide sufficient information to enable l

FOR FURTHER INFORMATION CONTACT:

by the percent change in the NRC the public to comment meaningfully on Glenda Jackson, Office of the Chief budget authority since its FY 1997 this aspect of the proposed rule, and Financial Officer, U.S. Nuclear appmpriation. In this final rule, FY went on to argue that the NRC's Regulatory Commission, Washington, 1998 annual fees have been adjusted obligation to examine its activities and DC 20555-0001, Telephone 301--415-downward by about 0.1 percent. This their associated costs annually pursuant 1

6057.

change is consistent with the NRC's to OBRA-90 cannot be satisfied by intention stated in the FY 1995 final merely adjusting the FY 1995 baseline I

SUPPLEMENTARY INFORMATION:

1. Background.

rule. The NRC indicated that, begmning determinations. Both of these

11. Responses to Comments.

in FY 1996, annual fees would be commenters indicated that the NRC 111. hnal Action.

stabilized by adjusting the prior year should not proceed with the rule as IV. Section-by-Section Analysis.

annual fees by the percent change (plus proposed and should provide a clear V. Environmental Impact: Categorical or minus)in the NRC budget authority explanation of the relationship between Exclusion.

taking into consideration the estimated services provided and the proposed VI. Paperwork Reduction Act Statement.

collections from to CFR Part 170 fees annual fee. FPL stated that the

h. R Fory lity Analysis.

and the number of licensees paying fees; description and level of justification tx. Backfit Analysis.

2. Revise, by lowering, the two should be no less than that employed X. Small Business Regulatory Enforcement Professional hourly rates in 5170.20 prior to 1995. NEI also stated that the Fairness Act.

that are used to determine the 10 CFR NRC did not provide any information to i

Part 170 fees assessed by the NRC. The enable an evaluation of the basis for the L Background rate for FY 1998 for the reactor program judgment that neither of the two tests Public Law 101-508, the Omnibus is $124 per hour and the rate for the for reexamining the basis for the annual Budget Reconciliation Act of 1990 materials program is $121 per hour.

fees (e.g., a substantial change in the (OBRA-90), enacted November 5,1990,

3. Adjust downward the current NRC's budget or in the magnitude of a required that the NRC recover licensing and inspection fees in specific budget allocation to a class of approximately 100 percent ofits budget SS 170.21 and 170.31 for applicants and licensees) had been met.

authority, less the amount appropriated licensees to reflect the changes in the Response. The NRC believes that it from the Department of Energy (DOE) revised hourly rates.

has provided sufficient information to i

l administered NWF, for FYs 1991

4. Revise S 170.12(g) to include full allow public evaluation and comment through 1995 by assessing fees. OBRA-cost recovery for resident inspectors and on the proposed fees The proposed fee 90 was amended in 1993 to extend the to recover costs incurred up to rule contained specific explanations for

s.

Federal Register /Vol. 63. No.111/ Wednesday, June 10,1998 / Rules and Regulations 31841 the changes to the annual fees, received supporting the methodology, operations and permanent removal of including tables showing the calculation the NRC adopted the change. and the fuel from the Zion 1 and 2 reactor of the percentage change to the annual revised method was used to determine vessels. The certifications were filed fees. In addition, as stated in the the FY 1996 and FY 1997 annual fees.

later in the fiscal year than anticipated proposed rule, the workpapers The revised method was not challenged when the proposed rule was developed, supporting the proposed fee rule by commenters when it produced a resultingin the equivalent of 2.3 fewer changes are available for public reduction of about 6 percent in FY 1996, power reactors paying annual fees in FY examination in the NRC Public and at the time NEITiated that it was 1998 than in FY 1997. The result is that Document Room at 2120 L Street, NW

" pleased that the annual fees for the final FY 1998 annual fees have (Lower Level), Washington, DC 20555.

licensees are being lowered by slightly decreased by about 0.1 percent Moreover, a detailed explanation of over 6%" (letter to John C. licyle, compared to the FY 1997 actual (prior NRC4 budget is set forth in NUREG-Secretary of the Commission, from to rounding) annual fees.

1100, Volume 13, Budget Estimates William H. Rasin, NEl, dated February

2. Comment. FPL stated that the Fiscal Year 1998 published in February 28,1996). The Commission reaffirmed proposed rule does not reflect any 1997 and is available to commenters.

the legality of its approach in its denial Commission consideration of the Finally, NRC staff dur'.ng the comment of an NEI petition seeking specific services driving the cost period responded to telephone requests reconsideration of the final fee rule for increase. FPL also questioned why the for additional explanation of the fiscal year 1997. See, October 1,1997, reactor annual fee was not reduced in proposed rule.

Contrar letter from John C.11oyle, Secretary of light of the premature shutdown of four inference,y to the commenters' the Commission, to Robert W. Bishop, nuclear units in FY 1997. Another OBRA-90 does not require Vice President and General Counsel, NRC to rebaseline annual fees every Nuclear Energy Institute.

commenter, Tennessee Valley Authority (TVA), stated that, with the shift from year. The statute states that "[tio the With regard to the question of operating reactor oversight to maximum extent practicable, the whether the criteria established by NRC decommissioning activities, strcog charges shall have a reasonable for rebaselining have been met, the NRC action to reduce overhead and central relationship to the cost of providing specifically stated in the proposed rule staff appears appropriate. TVA also regulatory services and may be based on that there has not been a substantial stated that the 10 percent fewer power the allocation of the Commission's change in the NRC budget or the licensees with much better average resources among licensees or classes of magnitude of a specific budget performance than in the past should licensees." The Conference Report on allocation to a class oflicensees. The FY yield reductions in total NRC fees.

the statute makes clear that the Congress 1998 budgeted amount to be recovered Response. Although the proposed recognized that the allocation of fees through NRC's fees is $7.5 million less reactor annual fee increased slightly, by would diverge from the allocation of than in FY 1997. This is clearly not a 0.1 percent, from FY 1997, the total resources in the budget. The conferees substantial change. Similarly, as budget to be recovered through fees further " recognize (dj '. bat there are reflected in the NRC's annual budgets, decreased by $7.5 million from FY 1997.

expenses that cane t be attributed either there have not been major changes in in fact, the proposed rule reflected a s

to an individual licensee or a class of the allocation of budgeted resources to decrease in the total annual fees for the licensees."(House Conference Report specific classes of licensees.

power reactor class of licensees of 101-954, p. 962.) This language affords This final rule adopts the approximately 37.4 million compared to the Commission some flexibility in methodology to streamline and stabilize FY 1997. The slight incmase in the shaping its annual fee schedules.

FY 1998 annual fees by adjusting these proposed annual fee to be assessed to in promulgating the FY 1995 fee rule, fees by the percentage change in NRC's each reactor licensee was not the result the NRC solicited comments on a total budget authority. The FY 1997 fees ofincreased costs or a lack of proposal to establish the annual fees for have been used as base armual fees, and consideration of the specific services FY 1996 through FY 1998, and FY 1999 these fees have been adjusted for FY Rather, the proposed change was if OBRA-90 is extended, based on the 1998 based on the percentage change in primarily the result of the equivalent of percentage decrease or increase in the NRC's budget authority, taking into 2.5 fewer reactors paying the annual fee NF.C's total budget. unless there was a consideration the total number of compared to FY 1997. Assexplained in substantial change in that total budget licensees paying fees and estimated response to the above comment, this or in the magnitude of a specific budget collections from 10 CFR Part 170 fees.

final mle reflects the equivalent of 2.3 allocation to a class of licensees. The The amounts of the annual fees for some fewer reactors paying the FY 1998 fees, NRC indicated that the annual fees of the classes oflicensees have and as a result the final FY 1998 annual would also be adjusted to compensate decreased since the publication of the fees decreased by 0.1 percent compared for chan8es in Part 170 fee collections proposed rule.The proposed FY 1998 to the FY 1997 exact (prior to rounding) and the number oflicensees paying annual fees were developed using an annual fees.

annual fees. The NRC concluded that estimated number of days for proration this approach is " practicable" and fully of the FY 1993 annual fees for Zion 0:

8I# #

1. 8

' "O#0#"#NI consistent with its statutory mandate.

Stations Units 1 and. As a result of UC#"8##8

)

Most commenters in FY 1995 agreed this estimation, the F ( 1998 proposed L Comment. NEl FPL, and 'ITA 1

that this method represented a annual fees were based on the continued to urge NRC to take action to simplification and streamlining of the equivalent of 2.5 fewer power reactors eliminate fees for services that do not fee setting procedures and was paying annual fees in FY 1998 than in benefit the licensees paying the annual necessary to eliminate the large FY 1997, and the proposed FY 1998 fees. FPL and NEI concluded that fluctuations in annual fees that had annual fees increased by 0.1 percent recovering the costs of these activities occurred in the past and to provide for compared to the actual (prior to from reactor licensees violates the greater predictability of fees. At that rounding) FY 1997 annual fees. The provision of OBRA-90 that the charges time, neither NEl nor any reactor final FY 1998 annual fees have been shall have a reasonable relationship to licensee objected to the proposed developed based on the certification the cost of providing regulatory services.

method. Based on the comments dates for permanent cessation of FPL argued that assessing these non-l l

l E__________________.-

10.1998 / Rules and Regulations Fed:rtl R gister /Vol. 63. No.111/ Wednesday, June 31842 reactor costs to reactor licensees exceeds constraints of existing law. For example, entire pop the Commission succes fully obtained paying for these costs (see 60 FR 14670 the Congressional delegation of appropriation legislation that removed 14674). This continues to be a sensible authority and is arbitrary and from the fee base certain costs incurred approach.

capricious, and therefore violates the as a result of regulatory reviews and C. Part 170 fees Equal Protection requirements of the other assistance provided to the

1. Comment. NEl and FPL indicated Due Process Clause of the Fifth Department of Energy and other Federal that NRC should increase the percentage Amendment to the United States agencies. In addition', when authorized of costs recovered through Part 170 fees.

Constitution. NEl suggested that the by law, the NRC has made a concerted FPL claimed that there is no exemption NRC could conclude that recovering 88 effort to obtain reimbursements for authority from the provision that "an, percent ofits budget authority by services provided to other Federal person who receives a service or thing eliminating these costs from fee recovery is consistent with the agencies. The NRC has not submitted of value from the Commission shall pay proposed legislation that would take out fees to cover the Commission's costs in requirement of OBRA-90 to recover of the fee base the costs of services that providing any such service or thing of "approximately" 100 percent of its budget authority from fees, or NRC do not provide direct benefits to value." NEl stated that ".-.,79 percent of could seek legislation to resolve the licensees because the Office of the fees proposed to be collected from issue, as it has committed to do in the Management and Budget has advised NRC licensees are for non discrete that such legislation would be services.This approach makes it too Response. As NRC has stated on many inconsistent with the President'seasy to shift personnel from providing past.

occasions,it shares commenters*

budget.The NRC notes that the Senate discrete services to working on generic concerns that licensees are paying for Committee on Environment and Public issues, thereby increasing overhead activities that do not directly benefit Works recently ordered to be reported costs as actual services provided to them.11owever, the NRC disagrees with legislation which would exclude up to individual licensees decline, rather than the assertion that recovering these costs $30 million each year from the NRC's make the hard decisions of what from licensees violates statutory fee base.

activities are really necessary." FPL The NRC disagrees that eliminating concluded that NRC has not adequately requirements. In fact, the Congressional these costs from fee recovery, therebyallocated costs to the beneficiaries of the guidelines provided in the Conference recovering 88 percent of the budget, services. NEI and TVA supported NRC's Report to the 100 percent fee recovery would meet the OBRA-90 requirement proposed full-cost provision for resident legislation specifically provide for the that NRC recover approximately 100 inspectors; however, TVA indicated that assessment of fees to licensees to percent of its budget authority through time for resident inspectors assigned to recover agency costs that may not fees. As the NRC stated in the statement specialinspections at other plants provide direct benefits to them.The of considerations accompanying the FY should be charged to those specific conferees recognized that " Congress 1991 final rule (56 FR 31474), it inspections. TVA supported the reduced must indicate clearly its intention to interprets the words "approximately hourly rate and NRC's proposed long-delegate to the Executive the 100 percent" as meaning that the term policy to progress bi!! for all discretionary authority to recover administrative costs not inuring directly Commission should promulgate a rule to the benefit of regulated panies" and that identifies and allocates as close to inspections.

Response.The NRC previously 100 percent of its budget authority to responded to commenters* claim that that Congress must provide guidelines the various classes of NRC licensees as there is no exemption authority from the for making these assessments. The is practical. The Commission concluded Provision that those receiving a service conferees recognized that certain that, based on the Conference Report shall pay fees to cover the Commission's expenses cannot be attributed either to an individual or to classes of NRC guidelines, it was Congress' intent that costs of providing the service (62 FR licensees. The conferees intended that the Commission alloccte 100 percent of 29195). As the NRC pointed out in that the NRC fairly and equitably recover its budget authority for fee assessment, response, the NRC is barred by law from these expenses from its licensees and that the term "approximately charging most Federal agencies 10 CFR 100%" refers only to the inherent Part 170 fees, and exemptions from fees through the annual charge even though uncertainties in estimating and granted by the NRC are well founded in these expenses cannot be attributed to collecting the fees. Furthermore, in law and are granted only after full and individual licensees or classes of NRC's annual appropriations acts, the Public consideration of the relevant licensees. These expenses may be recovered from the licensees as the Congress presumes that the NRC fee policy questions.

Commission,in its discretion, collections will approximate 100 The proposed rule included several determines can fairly, equitably, and percent, not 88 percent, of its budget actions that would lead to increased practicably contribute to their payment. authority. See, e.g., Title IV of the cost recovery under Part 170 for services (138 Cong. Rec at 1112692-3.) Based on Energy and Water Development provided to identifiable beneficiaries.

these explicit guidelines, the NRC Appropriations Act,1998.P.L.105-62.

The NRC is adopting the proposed The Conference Report guidance also concludes that the assessment of fees to provides that the costs be " recovered change to recover full cost for resident recover these costs from licensees is from such licensees as the Commission inspectors under 10 CFR Part 170; neither arbitrary nor capdciests, and in its discretion determines can fairly, however, as a result of the comments received the NRC has clarified in 10 does not violate any status, Nevertheless,the NRC continues to equitably and practicably contribute to take action to minimize the impacts of their payment." The FY 1995 fee rule, CFR 170.12(g) that time spent by a recovering the costs of these activities which established the baselines used in resident inspector in support of from licensees. Although legislation subsequent annual fee rules, including activities at other sites will not be billed the current one, allocated the cost of the to the site to which the resident recommended in NRC's February 23, 1994 Report to Congress to address activities that raised faimess and equity inspector is assigned. The NRC is also these concerns has not been enacted, the concerns to all licensees based on the adopting the proposed change to recover NRC has taken several steps to mitigate budgeted dollars for each class of costs incurred within 30 days after the the perceived inequities within the licenses. This allocation results in the inspection report is issued, and the

~ ~~~~

Fedirzl Regist:r/Vol. 63, No. til / Wednesday, June 10,1998/ Rules and Regulations 31843 pr'ocedural change to assess Part 170 must pay a full annual fee for each of estimated amount to be recovered in 10

~

fees for licensing and inspection its enrichment facilities and that its CFR Part 170 fees, the number of activities performed during facilities have been placed in the licensees paying annual fees in FY 1998 compensated overtime. Because this appropriate fee category. Insofar as has decreased compared to FY 1997. For final rule will not be effective before the USEC's comment letter requested a example, Commonwealth Edison fourth quarter of FY 1998, the increased reconsideration of NRC's March 23 notified the NRC that the Zion Station Part 170 collections for these activities 1998, denial ofits annual fee exemption Units 1 and 2 ceased operations on do not affect the FY 1998 fee request, the NRC will respond to that February 13,1998. On March 11,1998, calculations, but will be reflected in the request separately.

the NRC docketed Commonwealth FY 1999 fee rule. As indicated in the 111. Final Action Edison's certification that all fuel has proposed rule, the NRC will progress been removed from the Zion Station bill for inspections under certain The NRC is amending its licensing, Units 1 and 2 reactor vessels. In circumstances. Based on the comments inspection, and annual fees to recover addition, both the Haddam Neck Plant received, the necessary changes to 10 approximately 100 percent ofits FY and the Maine '.'ankee Plant ceased CFR 170 will be made in future 1998 budget authority, including the operations during FY 1997 and therefore rulemaking once the system is available budget authority fc its Office of the are not subject to the FY 1998 annual to accommodate progress billing for all Inspector General..ess the fees. This is equivalent to a eduction of ins _pections.

appropriations received from the NWF 2.3 power reactors subject to the FY The NRC l'as established in this FY and the General Fund. For FY 1998, the 1998 annual fees compared to FY 1997.

1998 final rule a professional hourly f'RC's budget authority is $472.8 The Big Rock Point Plant, a small, older rate of 5124 for the reactor program and million, of which $15.0 million has reactor historically granted a partial I

$121 per hour for the materials program. been appropriated from the NWF,In exemption from the annual fee, also These revised rates, which are a addition, $3.0 million has been ceased operations in FY 1997 and is no reduction from the FY 1997 rates, will appropriated from the General Fund for longer subject to annual fees.

be used to determine the 10 CFR Part activities related to commercial 170 fees.

vitrification of waste stored at the The proposed FY 1998 annual fees The NRC has already taken steps to Department of Energy IIanford, were developed usmg an estimated evaluate other areas for potential cost Washington, site and for the pilot number of days for proration of the FY recovery under Part 170, with the gram for the external regulation of 1998 annual fees for Zion Station Units intention of including the recommended [h Department of Energy. The FY 1998 1 and 2. As a result of this estimation, activities in the FY 1999 proposed fee appropriation language states that the the FY 1998 pmposed annual fees were rule for public comment.

$3.0 million appropriated for regulatory based on the equivalent of 2.5 fewer D. Annuof feesfor Certificates of reviews and other activities pertaining power reactors paying annual fees in FY Compliance Issued to the United States to waste stored at the Hanford, 1998 than in FY 1997, and the toposed Enrichment Corpomtion Washington, site and activities FY 1998 annual fees increased y 0.1 1, Comment. The United States associated with the pilot program for Percent compared to the actual (pnor to ex emal lation of the Department of munding) FY 1997 annual fees. The Enrichment Corporation (USEC)

Energy sh be excluded from license final FY 1998 annual fees have been fee revenues notwithstanding 42 U.S.C.

developed based on the Zion 1 and 2 asse fo the t o seous I u on 2214. Therefore, NRC is required to certifications of permanent cessation of Plants (GPDs) obrated b USEC and e llect approximately $454.8 million in Operations and permanent removal of that the fee be r,uced to a vaIve FY 1998 t ugh to CFR Part 170 fuel from the reactor vessels, which commensurate with the proposed fee for licensing and inspection fees and to were filed later in the fiscal year than bri tio i ti C u mitted CFR Part 171 annual fees.

c at e the sed m e was detailed information to support its The total amount to be recovered in Pe -

8 9

f{W{ Power ctors ayin an ual request. USEC stated that its comments fees for FY 1998 is 57.5 million less not only address its belief that the than the amount estimated for recovery roposed rule is not fair and equitable, for FY 1997. The NRC estimates that result, the final FY 1998 annual fees u 1(prior as d ratio of e RC s March 23, ere in Y1 8 s ssed P

o 1

a 1998, denial of USEC's request for an under 10 CFR Part 170 and other to rounding) annua fees.

exemption from the annual fees.

receipts, compared to $95.2 million in Because this is a slight decrease, the flesponse. NRC rejected similar FY 1997. The remaining 3360.2 million final (rounded) FY 1998 annual fees for arguments from USEC in the FY 1997 will be recovered in FY 1998 through many fee categ)ories are the same as th]

final rule (62 FR 29197), and in its the 10 CFR Part 171 annual fees, final (rounded FY 1997 annual fees.

i March 23,1998, denial of USEC's cornpared to 5367.1 for FY 1997.

The change to the annual fees is

]

annual fee exsmption request, The NRC In additinn to the decrease in the described in more detail in Section B.

j continues to believe for the reasons amount to be recovered through annual The following examples illustrate the j

stated in these documents that the USEC fees and the slight reduction in the c.hanges in annual fees:

FY 1997 an-FY 1998 an-l nual fee nual fee I

Class of Licensees:

Power Reactors

$2.978,000

$2,976,000 Nonpower Reactors.

57,300 57,300 High Enriched Uraniurn Fuel Facdity 2.606,000 2,604,000 Low Ennched Uraniurn Fuel Facihty 1,279,000 1,278,000 UF. Converseon Facdrty -

648,000 648,000

31844 Fed:r:1 R:gister/Vol. 63, No.111/ Wednesday, }une 10,1998/ Rules and Regulations FY 1997 an-FY'1998 an.

nual fee nual fee 61.800 61,700 Uranium Mills..

Typ cal Matenals Licenses:

14.100 14,000 Radiographer 8.200 8.200 Well Loggers.

1,700 1,700 Gauge Users.

23.500 23.500 Broad Scope Medical.

Because the final FY 1998 fee rule fuel storage installations, or ISFSIs) of approximately 30 days after the will be a " major" final action as defined spent fuel. The Commission has inspection report is issued, such as by the Small Business Regulatory previously determined that both storage follow-up on the inspection findings.

Enforcement Falmess Act of 1996, the options are considered safe and These activities are identifiable services NRC's fees for FY 1998 will become acceptable forms of storage for spent for specific licensees. This change will effective 60 days after publication of t e fuel. Under current fee regulations, Part result in recovery through Part 170 fees h

final rule in the Federal Register. The 50 licensees whose facilities are being of approximately 80 percent of the NRC will send an invoice for the decomm:ssioned and who store spent accumulated costs expended after the amount of the annual fee upon fuel in a spent fuel pool are not assessed inspection report is sent, and will publication of the FY 1998 final rule to an annual fee, but licensees who store continue to provide applicants and reactors and major fuel cycle facilities.

spent fuel in an ISFSI under Part 72 are licensees with a definitive point at For these licensees, payment will be due assessed an annual fee. The NRC will which billing will cease.

on the effective date of the FY 1998 rule. review this policy as part of the overall Second, the NRC is revising Those materials licensees whose license study of the issues related to annual fees 6170.12[h) to include credit cards as an anniversary date during FY 1998 falls for licensees of facilities being additional method of payment, and to before the effective date of the final FY decommissioned.

Provide additionalinformation on 1998 final rule will be billd during the The NRC is amending 10 CFR Parts electronic payments. Credit card anniversary month of the license and 170 and 171 as discussed in Sections A.

Payments will be accepted up to the continue to pay annual fees at the FY and B. below limit established by the credit card 1997 rate in FY 1998. Those materials bank. Electronic payments may be made licensees whose license anniversary A. Amendment,s to 10 CFR Part 170:

by Fedwire (a funds transfer system Fus kr Facilities, Matenals, Import and operated by the Federal Reserve System) date falls on or after the effective date Export Licenses, and Other Regulatory or by Automated Clearing House (ACH).

of the FY 1998 final rule will be billed at the FY 1998 revised rates during the ACif is a nationwide processing and 88f"I"8 anniversary month of the license and Four amendments have been made to delivery facility that provides for the payment will be due on the date of the 10 CFR Part 170. These amendments do distribution and settlement of electronic

invoice, not change the underlying basis for the financial transactions. Electronic As announced in the proposed rule, regulation-that fees be assessed to payment will not only expedite the the NRC will no lon8er mail the final applicants, persons, and licensees for payment process, but will also save rule to alllicensees. In addition to specific identifiable services rendered.

applicants and licensees considerable publication in the Federal Register, the The amendments also comply with the time and money over a paper based final rule is available on the Internet at guidance in the Conference Committee payment system.

=

http1/ruleforum.lln!. gov /.

Report on OBRA-90 that fees assessed third, the two professional hourly Copies of the final rule will be mailed under the Independent Offices rates established in FY 1997 in $ 170.20 upon request.To obtain a copy of the Appropriation Act (IOAA) recover the are revised based on the FY 1998 final rule, contact the License Fee and full cost to the NRC ofidentifiable budget. These rates are based on the FY Accounts Receivable Branch, Division regulatory services that each applicant 1998 direct FTEs and the FY 1998 of Accounting and Finance, Office of the or licensee receives.

budget excluding direct program Chief Financial Officer, at 301-415-First, the NRC is amending S 170.12(g) support (contractual services costs) and 7554. As a matter of courtesy, the NRC to include the following for cost the appropriation from the NWF or the General Fund. These rates are used to plans to continue in future years to send recovery:l-cost recovery for resident (1) Ful determine the Part 170 fees. The NRC the proposed rule to alllicensees.

The NRC also announced in the inspectors.

has established a rate of $124 per hour proposed rule that it plans to reexamine Because the assignment of resident

($219,901 per direct FTE) for the reactor its current policy of exempting from inspectors to a site is an identifiable program. This rate is applicable to all annual fees those licensees whose service to a specific licensee, the NRC activities for which fees are based on facilities are being decommissioned, or will bill the specific licensee for all of full cost under 5170.21 of the fee who have possession 'mly licenses. The the resident inspectors' time, exduding regulations. A second rate of $121 per proposed rule stated that this review leave and time spent by a resident hour (5214,185 per direct I'l'E) is would also reexamine NRC's annual fee inspectorin support of activities at established for the nuclear materials and policy for reactors' storage of spent fuel. another site. This change is applicable nuclear waste program. This rate is Any changes to the current fee policies to all classes of licensees having applicable to all materie.ls activities for resulting from these reexaminations will resident inspectors.

which fees are based on full cost under be included in the FY 1999 fee (2) Costs expended within

$ 170.31 of the fee regulations. In the FY rulemaking. One purpose of the study is approximately 30 days after the 1997 final fee rule, these rates were to assure consistent fee treatment for issuance of an inspection report.

$131 and 5125, respectively. The both wet storage (i.e., spent fuel pool)

Part 170 fees will be assessed for decrease in the hourly rates is primarily and dry storage (i.e., independent spent activities that occur within due to a change in application of the

I l.

Fol:rtl Register /Vol. 63 No.111/ Wednesday, June 10.1998/ Rules and Regulations 31845 i

i types of costs included in the hourly specified interval. Once that system is used in FY 1996. Because the amount to f,

rates. Previously, the hourly rates were available the NRC intends to progress be recovered through fees for FY 1997 determined based on the premise that bill for all inspections. The staff sought was identical to the amount to be i

surcharge costs should be shared by early comment on the long. term policy recovered in FY 1996, establishing new i

those paying Part 170 fees for services in the FY 1998 proposed rule, and baseline fees was not warranted for FY as well as those paying Part 171 annual received one comment supporting the 1997. Based on a change in the fees. The revised hourly rates have been change. The necessary revision to 10 distribution between Parts 170 and 171 determined based on the principle that CFR 170 will be made in future fees, a reduction in the amount of the the surcharge costs are more rulemaking when the system is available budget recovered from 10 CFR Part 170 appropriately included only in the Part to accomplish this.

fees, a reduction in other offsetting -

annual b.

B. Amendments to 10 CFR Part 171:

adjustments, and a reduction in the A ","," I nd Fu 1 Cycle LfceIs fo abcens e 8

i ud as o theadi e c Iculation 7jc ses and e

1 7 annua Increased 8 4 t om ar d to the for reviews and inspections wift not be jerials Licen pecific S t on f o ex ed 8'

cluding Holders of i

py 9

.ficates of C mp1ionce, billed to the applicant or licensee Registrations, and Quality Assurance g

,g ma e an

^

f pect c 11 s n an n io ge s L ce sed y R I

a a year ot col c ed activities were directly bi ed under Part Four amendments have been made to As indicated in the FY 1995 final rule 170 to the applicant or licensee. This to CFR Part 171, change is consistent with the current First, the NRC is amending S 171.13 to because there has not been a substantial budget structure which includes Section delete specific fiscal year references.

change in the NRC budget orin the Chiefs as overhead.

Second, the NRC is amending magnitude of a spec!fic, budget Fourth, the NRC has adjusted the SS 171.15 and 171.16 to revise the allocation to a class of hcensees, the current Part 170 licensing fees in annual fees for FY 1998 to recover NRC followed the same method used for

$5170.21 and 170.31 to reflect the approximately 100 percent of the FY FY 1996 and FY 1997 to establish the revised hourly rates.

1998 budget authority,less fees FY 1998 annual fees.

In addition, although not a specific collected under 10 CFR Part 170 and The FY 1998 amount to be recovered

)

change to Part 170, the NRC will assess funds appropriated from the NWF and through fees is approximately $454.8 j

Part 170 fees for compensated overtime the General Fund. In the FY 1995 final million, which is $7.5 million less than hours expended for activities covered by rule, the NRC stated that it would in FY 1997. The estimated amount to be Part 170, such as reviews of stabilize annual fees as follows.

recovered in to CFR Part 170 fees is applications, inspections, Part 55 Beginning in FY 1996, the NRC would

$94.6 million, compared to $95.2 exams, and special projects. The adjust the annual fees only by the million for FY 1997. In addition, there l

compensated overtime hours will be percentage change (plus or minus)in are the equivalent of 2.3 fewer power billed at the normal hourly rate.

NRC's total budget authority unless reactors subject to annual fees in FY The NRC will also bill for there was a substantial change in the 1998.There is also a reduction of accumulated inspection costs prior to total NRC budget authority or the approximately 200 transportation issuance of the inspection report under magnitude of the budget allocated to a quality assurance approvals as a result certain circumstances. NRC plans to specific class of licensees. If either case of the rulemaking in 1997 that progress bill for inspections in selected occurred, the annual fee base would be combined these approvals with the Part cases where it is determined that such recalculated as discussed in the FY 1995 34 radiography licenses.

billing would be in the best interest of final rule (60 FR 32225: June 20,1995).

The NRC is establishing the FY 1998 the agency and the licensee. Ifit is in the FY 1995 rule, the NRC also annual fees for all licensees at about 0.1 determined that the accumulated costs indicated that the percentage change percent below the FY 1997 actual (prior warrant an exception to the billing would be adjusted based on changes in to rounding) annual fees. Based on the method currently provided in 10 CFR 1r, CFR Part 170 fees and other small change, the rounded FY 1998 170.12(g), NRC will coordinate with the t djustments as well as on the number of annual fee for many fee categories is the licensee to establish a mutually licensees paying the fees.

same as the final (rounded) FY 1997 agreeable billing schedule and will issue In the FY 1996 final rule, the NRC annual fee. Therefore, for many an invoice for inspection costs that havo stabilized the annual fees by licensees, the annual fee for FY 1998 is accumulated.

establishing the annual fees for all the same as the FY 1997 annual fee.

The NRC is developing a system that licensees at a level of 6.5 percent below Table I shows the total budget and will accommodate routine billing Far the FY 1995 annual fees. For FY 1997, amounts of fees for FY 1997 and FY accumulated inspechet a the NRC followed the same method as 1998.

TABLE 1.-CALCULATION OF THE PERCENTAGE CHANGE TO THE FY 1997 ANNUAL FEES 4

[Dohars in rniNeons) l FY 1997 FY 1998 Total Buoget 3476.8

$472.8 Less NWF

- 11.0

- 15.0 Less General Fund (Hanford Tanks, Puot for Regulaton of DOE)

- 3.5

- 3.0 Total Fee Base 462.3 454.8 Less Part 170 Fees 195 2

- 94.6 Less other recepts

31846 Federtl R:gister/Vol. 63. No. til / Wednesday, June 10,1998/ Rules and Regulations TABLE CALCULATION OF THE PERCENTAGE CHANGE TO THE FY 1997 ANNUAL FEES-Continued iDollars in m:lleons!

FY 1997 FY 1998 367.1 360.2 Part 171 Fee Collections Required Part 171 Bilhng Adjustment 9 5.0 5.8 Small Entity Allowance 3.0 3.9 Unpaid current FY invoces

- 2.0

- 3.2 Payments from prior year invoces.

6.0 6.5 Subtotal.

373.1 366.7 Total Part 171 Bilkng

'These adjustments are necessary to ensure that the bstled*' amount results in the required collections. Positive amounts indicate amounts bdled that wdi not be collected in FY 1998.

Third, Footnote 1 of 10 CFR 171.16(d) system operated by the Federal Reserve are to Title 10, Chapter I, U.S. Code of is amended to provide for a waiver of System) or by Automated Clearing Federal Regulations.

annual fees for FY 1998 for those House (ACH). ACH is a nationwide Pan 2 materials licensees, and holders of processing and delivery facility that certificates, registrations, and approvals, provides for the distribution and Section 2.205 Civil Penalties who either filed for termination of their settlement of electronic financial.

Paragraph 2.205(I)is amended to licenses or ap rovals or filed for transactions. Electronic payments will provide additional methods of payment, possession on y/ storage licenses before not ont expedite the ayment process, such as Automated Clearing House and October 1,1997, and permanently but wil also save a icants and credit cards, and to clarify that ceased hcensed acthitic entirely by licensees considera e time and money Payments are to be made in U.S. funds September 30,1997. All other licensees over a haper-based payment system.to the U.S. Nuclear Regu}atory The RC will send an invoice to and approval holders who held a license Commission.

or approval on October 1,1997, are reactors and major fuel cycle facilities subject to FY 1998 annual fees. This for the amount of the annual fee after Part !40 change is being made in recognition of Publication of the FY 1998 final rule.

Section 140.7 Fees the fact that since the final FY 1997 rule For these licensees, payment will be due on the effective date of FY 1998 rule.

Paragraphs (a)(5) and (c) are amended was published in May 1997. some Those materials licensees whose license to delete references to payment licensees have filed requests for termination of their licenses or anniversary date during the FY 1998 instructions. A new paragraph (d)is certificates with the NRC. Other falls before the effective date of the final added to provide payment instructions, licensees have either telephoned or FY 1998 rule will be billed during the including clarification that payments written to the NRC since the FY 1997 anniversary month of the license and are to be made in U.S. funds to the U.S.

final rule became effective requesting continue to pay annual fees at the FY Nuclear Regulatory Commission and to 1997 rate in FY 1998.Those materials provide additional methods of further clarification and information concerning the annual fees assessed, licensees whose license anniversary payments, such as Automated Clearing date falls on or after the effective date House and credit cards.

The NRC is responding to these requests as quickly as ossible. However, the ithe final FY 1998 rule will be billed.

Part 270 NRC was una le to respond and take at the FY 1998 revised rates, during the action on all requests before the end of anniversary month of the license and Section 170.12 Payment of Fees FY 1997 on September 30,1997, Similar payment will be due on the date of the Faragraph (g)is amended to indicate In u situations existed after the FY 1991-e nal changes to 10 CFR Part 171 that costs incurred within 1996 rules were published, and in those are consistent u ith the NRC's FY 1995 approximately 30 days after an cases, the NRC provided an exemption final rule indicating that' for the Period inspection report is issued will be billed from the requirement that the annual fee FY 1996-1999, the expe tation is that to the specific licensee, and that for is waived o ly when a license is annual fees would be adjusted by the each site having a resident inspector (s),

te nated before October 1 of each the licensee will be billed for all of the percentage change (plus or minus) to the Fourth, ' 171.19 is amended to update NRC's budget authority adjusted for resident inspectors' time, excludin8 I

NRC offsetting receipts and the number leave and time spent by a resident fiscal year references and to credit the oflicensees paying annual fees.

inspector in support of activities at partial payments made by certain in addition to the amendments to 10 another site.

Ifcensees in FY 1998 either toward their CFR Parts 170 and 171, the NRC is Paragraph (b)is revised to provide total annual fee to be assessed or to amending 10 CFR Parts 2 and 140 to additional methods of payment for fees make refunds, if necessary. Section include the additional methods of assessed under 10 CFR Part 170 and to 171.19(a)is also amended to provide payments provided in 10 CFR Parts 170 clarify that payment should be made in credit cards as an additional method of and 171.

U.S. f mds.

payment, and to provide additional information on electronic payments.

IV, Section-by-Section Analysis Section 170.20 Average Cost per Professional Staff-Hour Credit card payments will be accepted The following analysis of those up to the limit established by the credit sections that will be amended by this This section is amended to establish card bank. Electronic payments may be final rule provides additional two professional staff. hour rates based made by Fedwire (a funds transfer explanatory information. All references on FY 1998 budgeted costs--one for the

~

t ; **

1 Fcd:rd Registrr/Vol. 63, No. til / Wednesday, June 10,1998/ Rules and Regulations 3184/

)

t reactor program and one for the nuclear NRC has continued the use of cost calculation of the hourly rate because material and nuclear waste program.

center concepts established in FY 1995 the costs for direct contract support are Accordingly, the NRC reactor direct in allocating certain costs to the reactor charged directly through the various staff. hour rate for FY 1998 for all and materials programs in order to more categories of fees.

activities whose fees are based on full closely align budgeted costs with

3. All other direct program costs (i.e..

cost under S 170.21 is $124 per hour, or specific classes of licensees. The Salaries and Benefits, Travel) represent l

$219,901 per direct FTE. The NRC method used to determine the two "in-house" costs and are to be allocated nuclear material and nuclear waste professional hourly rates is as follows:

by dividing them uniformly by the total direct staff. hour rate for all materials

1. Direct program FTE levels are number of direct FTEs for the program, activities whose fees are based on full identified for both the reactor program in addition, salaries and benefits plus cost under 6170.31 is $121 per hour, or and the nuclear material and waste contracts for general and administrative

$214,195 per direct FTE. The rates are program.

support are allocated to each program based on the FY 199B direct FTEs and

2. Direct contract support, which is based on that program's salaries and NRC budgeted costs that are not the use of contract or other services in benefits. This method results in the iecovered through the appropriation support of the line organization's direct following costs which are included in from the NWF or the General Fund. The program,is excluded from the ths hourly rates.

TABLE il.-FY 1998 BUDGET AUTHORITY TO BE INCLUDED IN HOURLY RATES (Dollars in mdhons!

Reactor Matenals program program Direct Program Salaries & Benehts

$103.9

$20.5 Overhead Salaries & Benefits Program Travel and Other Support Afkr.ated Agency Management and Support -

55.3 14.8 101.7 22.0 Subtotal Less offsetting receipts 260.9 57.3 Total Budget included in Hourfy Rate Program Direct FTEs,

260.9 57.3 Rate per Direct FTE 1,166.4 267.3 219.901 214.185 Professional Hourly Rate (Rate per direct FTE divided by 1,776 hours0.00898 days <br />0.216 hours <br />0.00128 weeks <br />2.95268e-4 months <br />) -

124 121 Dividing the $260.9 million (rounded) as well as those paying Pan 171 annual Section 170.31 Schedule of Fees for budget for the reactor program by the fees. The FY 1998 hourly rates have Materials Licenses and Other Regulatory reactor program direct FTEs (1,186.4) been determined based on the principle Services, including Inspections and results in a rate for the reactor program that the surcharge costs are more Import and Export Licenses of $219,901 per FTE for FY 1998.

appropriately included only in the Part Dividing the $57.3 million (rounded) 171 annual fee.

The licensing and inspection fees in budget for the nuclear materials and this section, which are based on full.

nuclear waste program by the program Section 170.21 Schedule of Fees foi cost recovery, are modified to recover direct FTEs (267.3) results in a rate of Production and Utilization Facilities, the FY 1998 costs incurred by the NRC

$214,185 per FTE for FY 1998. The Review of Standard Reference Design in providing licensing and inspection direct FTE hourly rate for the reactor Approvals, Special Projects, Inspections services to identifiable recipients. The program is $124 per hour (rounded to and Import and Export Licenses fees assessed for services provided the nearest whole dollar). This rate is under the schedule are based on both calculated ny dividing the cost per The NRC is revising the h. censing and the professional hourly rate as shown in direct FTE ($219,901) by the number of inspection fees in this section, which j

$ 170.20 for the materials program and i

productive hours in one year (1,776 are based on full-cost recovery, to reflect hours) as indicated in the revised OMB FY 1998 budgeted costs and to recover any direct program support (contractual services) costs expended by the NRC.

Circular A-76," Performance of costs incurred by the NRC in providing Licensing fees based on the average time I

Commercial Activities." The direct FE licensing and inspection services to to res few an application (" flat" fees) are I

hourly rate for the materials program is identifiable recipients. The fees assessed adjusted to reflect the decrease in the

$121 per hour (rounded to the nearest for services provided under the professional hourly rate from $125 per whole dollar). This rate is calculated by schedule are based on the professional hour in FY 1997 to $121 per hour in FY dividing the cost per direct FTE hourly rate, as shown in $ 170.20, for 1998.

($214,185) by the number of productive the reactor program and any direct The a nounts of the materials hours in one year (1,776 hours0.00898 days <br />0.216 hours <br />0.00128 weeks <br />2.95268e-4 months <br />).

program support (contractual services) licensing " flat" fees were rounded so The FY 1998 hourly rates are slightly costs expended by the NRC. Any that the amounts would be de minimis lower than the FY 1997 rates. The professional hours expended on or after and the resulting flat fee would be decrease in the hourly rates is primarily the effective date of the final rule will convenient to the user. Fees under due to a change in application of the be assessed at the FY 1998 hourly rate

$1,000 are rounded to the nearest $10.

types of costs included in the hourly for the reactor program, as shown in Fees that are greater than $1,000 but less rates. Previously, the hourly rates were S 170.20. The fees in $ 170.21 for the than $100.000 are rounded to the determined based on the premise that review ofimport and export licensing, nearest $100. Fees that are greater than surcharge costs should be shared by facility Category K, are adjusted for FY

$100,000 are rounded to tiu nearest those paying Part 170 fees for services 1998 to reflect the revised hourly rate.

$1,000.

I

10,1998 / Rules and Regulations Federtl R: gist:r/Vol. 63, No.111/ Wednesday, June

- - 1 31848 MATERIALS LICENSES ANNUAt' FEE Section 171.16 AnnW Fe Ataterial-The licensing " flat" fees are Licensees, Holders of Cernatu :f RANGES-COntinU6d applicable to fee categories 1.C and 1.D; Compliance. Holdm. of Seak d.W n e Annual fees 2.B and 2.C; 3.A through 3.P; 4.B and Device Registrations Holders of Category of heense through 9.D 10.B.15.A through 15.E Quality Assurance Program Approvai Part 72-independent 283.000 end 16. Applications filed on or after and Government Agencies Licensed by Storage of Spent Nu-the effective date of the final rule will clear Fuel.

the NRC be subject to the fees in this f' mal rule.

' Excludes the annual fee for a few mditary For those licensing, inspection, and Section 171.16(c) covers the fees master matenais hcenses of broad-scope review fees that are based on full-cost assessed for those licensees that can issued to Govemment agencies, which as recovery (cost for professional staff qualify as small entities under NRC size hours plus any contractual services), the standards. A materials licensee may pay Footnote 1 of 10 CFR 171.16(d) is materials program hourly rate of $121, a reduced annual fee if the licensee amended to rovide a waiver of the as shown in $ 170.20, applies to those qualifies as a small entity under the annual fees or materials hcensens, and professional staff hours expended on or NRC's size standards and certifies byholders of certificates, registrations,.;ad comp etin8 and signing NRC Form 526 approvals, who either filed for after the effective date of the final rule.

l that it is a small entity.The NRC will termination of their licenses or Part 171 continue to assess two fees for licensees approvals or filed for possession only/

that qualify as small entities under the storage only licenses before October 1, NRC's size standards. In general, 1997, and permanently ceased licensed The language in this section is revised hcensees with gross annual receipts of activities entirely by September 30, to delete specific fiscal year references.

$350,000 to 55 million pay a maximum 1997. All other licensees and approval Section 171.15 Annual Fee: Reactor annual fee of $1,800. A second or lower-holders whc held a license or approval tier small entity fee of $400 is in place on October 1,1997, are subject to the FY Operating Licenses I ' '. mall entities with gross annual 1998 annual fees.,

lloiders of new bcenses issued during The annual fees in this section are receipts ofless than 5350,000 and small FY 1998 are subject to a prorated annual revised as described below.

governmental jurisdictions with a fee in accordance with the current Paragraphs (b), (c) (1), (c)(2), (e) and population of less than 20,000. No Proration provision of S 171.17. For (f) are revised to comply with the change in the amount of the small entity example, those new materials licenses requirement of OBRA-90 that the NRC fees is being made because the small issued during the period October 1 recover approximately 100 percent ofits entity fees are not based on budgeted through March 31 of the fiscal year will budget for FY 1998.

costs but are established at a level to be assessed one-half the annual fee in reduce the impact of fees on small Paragraph (b) is revised in its entirety to establish the FY 1998 annual fee for entities. The small entity fees are shown [;

,,,"h ter a n

i ued m the final rule for convenience.

on or after April 1,1998, will not be operating power reactors and to change fiscal year references from FY 1997 to Section 171.16(d) is revised to assessed an annual fee for FY 1998.

FY 1998.The fees are established by establish the FY 1998 annual fees for Thereafter, the full annual fee is due decreasing the FY 1997 annual fees materials licensees, including and payable each subsequent fiscal year (prior to rounding) by 0.1 percent. In the Government agencies, licensed by the on the anniversary date of the license.

FY 1995 final rule,the NRC stated it NRC.The annual fees were determined Beginning June 11,1996, (the effective date of the FY 1996 final rule), affected would stabilize annual fees by adjusting by decreasing the FY 1997 annual fees materials licensees are subject to the the annual fees only by the percentage (prior to rounding) by about 0.1 percent. annual fee in effect on the anniversary change (plus or minus)in NRC's total After rounding, many of the FY 1998 date of the license.The anniversary date budget authority and adjustments based annual fees for materials licensees are of the materials license for annual fee on changes in 10 CFR Part 170 fees as the same as the FY 1997 annual fees.

Purposes is b Way he mone 6 well as in the number of licensees The amount or range of the FY 1998 which the original hcense was issued.

paying the fees. The activit,es d b fo M ds b e is i

Section 171.19 Payment comprising the base FY 1995 annual fee summarized as follows.

and the FY 1995 additional charge Parab aph (a)is revised to provide (surcharge) are listed in paragraphs (b)

MATERIALS LICENSES ANNUAL FEE additional methods of payment and to

",t payments must be made in and (c) for convenience purposes.

The FY 1998 annual fee for each Paragraph (b) is revised to give credit operating power reactor is $2,976,000.

Category of hcense Annual fees for partial payments made by certain Paragraph (e)is revised to show the Part 70-ngh enriched

$2.604,000 licensees in FY 1998 toward their FY 1998 annual fees. The NRC anticipates amount of the FY 1998 annual fee for tuel fac4 nonpower (test and research) reactors.

Part 70-Low ennched 1.278.000 that the first, second, and third quarterly The 1998 annual fee of $57.300 is the P[

I convermon pa p nu ma han W same as the FY 1997 annual fee. The 648.000 made by operating power reactor NRC will continue to grant exemptions

facdity, licensees and some large materials e rt 40--Uraniurn recov-22.300 to 61,700 licensees before the final rule becomes from the annual fee to Federally-owned a

ant'. State-owned research and test ery tacdities.

effective. Therefore, the NRC will credit v t 30-Byproduct Ma-490 to $23,500, Payments received for those quarterly seactors that meet the exemption criteria ar tenal Lecenses.

annual fee assessments toward the total specified in 6171.11(a)(2).

Part 71-Transportation 1.000 to $78.800 annual fee to be assessed. The NRC will Paragraph (f)is revised to delete of Radioactive Matenar.

adjust the fourth quarterly invoice to specific fiscal year date references,

F:d:ral Register /Vol. 63, No.111/ Wednesday, June 10.1998/ Rules and Regulations 31849 l

' recover the full amount of the revised license that authorizes possession and for cost recovery and fee development annual fee or to make refunds, as use of radioactive material. To remove purposes.

necessary Payment of the annual fee is any uncertainty, the NRC issued minor The Commission's fee guidelines were due on the date of the invoice and clarifying amendments to 10 CFR upheld on August 24,1979, by the U.S.

interest accrues from the invoice date.

171.16, footnotes 1 and 7 on July 20 Court of Appeals for the Fifth Circuit in However, interest will be waived if 1993 (58 FR 38700).

Mississippi Power and Light Co. v. U.S.

payment is received within 30 days V. Environmental Impact: Cate8orical Nuclear Regulatory Commission,601 from the invoice date'd) are revised to Paragraphs (c) and (

Exc1usion F.2d 223 (5th Cir.1979), cert denied, 444 U.S.1102 (1980). The Court held delete specific fiscal year references.

The NRC has determined that this that -

As in FY 1997, the NRC will continue to bill annual fees for most materials final rule is the type of action described (1) The NRC had the authority to in categorical exclusion 10 CFR recover the full cost af license (licensees whose annual fees are 51.22(c)(1). Therefore, neither an services to identifiable broviding licenses on the anniversary date of the beneficiaries:

$100,000 or more will continue to be environmental impact statement nor an (2) The NRC could pro erly assess a assessed quarterly). The annual fee environmental impact assessment has fee for the costs of provi ng routine assessed will be the fee in effect on the been prepared for the final regulation, inspections necessary to ensure a license anniversary date. This rule By its very nature, this regulatory action licensee's com liance with the Atomic p lies to those materials licenses in the does not affect the environment, and Energy Act an with applicable therefore, no environmental justice regulations:

2.A i

h {

issues are raised.

(3) The NRC could charge for costs 4.A. through 9.D., and 10.B. For annual VI. Paperwork Reduction Act incurred in conducting environmental fee purposes, the anniversary date of the Statement reviews require by NEPA:

.This fi cos nc t'es ed i nn d of originafmaterials license wes issued.

Inf rmat,nal rule contains no rst ia of em nh t

ion collection requirements administrative and technical support For example,if the original materials and, therefore, is not subject to the services in the fee schedule:

license was issued on June 17 then, for requirements of the Paperwork (5) The NRC could assess a fee for annual fee purposes, the anniversary Reduction Act of 1995 (44 U.S.C. 3501 renewing a license to operate a low-date of the materials license is lune 1' et seq.).

level radioactive waste burial site; and and the licensee will continue to be VII. Regulatory Analysis (6) The NRC's fees were not arbitrary billed in June of each year for the r capncious, annual fee in effect on June 1. Materials With respect to 10 CFR Part 170, this With respect to 10 CFR Part 171, on licensees with anniversary dates in FY final rule was developed pursuant to November 5,1990, the Congress passed 1998 before the effective date of the FY Title V of the Independent Offices Public Law 101-508, the Omnibus 1998 final rule will b3 billed during the Appropriation Act of 1952 (IOAA)(31 Budget Reconciliation Act of1990 anniversary month of the license and U.S.C. 9701) and the Commission's fee (OBRA-90) that required for FYs 1991 continue to pay annual fees at the FY guidelines. When develeping these through 1995, approximately 100 1997 rate in FY 1998. Those materials guidelines the Commission took into percent of the NRC budget authority be licensees with license anniversary dates account guidance provided by the U.S.

recovered through the assessment of falling on or after the effective date of Supreme Court on March 4,1974, in its fees. OBRA-90 was amended in 1993 to the FY 1998 final rule will be billed, at decision of NationalCable Television extend the 100 percent fee recovery the FY 1998 revised rates, during the Association, Inc. v. United States, 415 requirement for NRC through FY 1998, anniversary month of their license and U.S. 36 (1974) and Federal Power To accomplish this statutory payment will be due on the date of the Commission v. New England Power requirement, the NRC, in accordance invoice.

Company,415 U.S. 345 (1974). In these with 5171.13,is publishing the final During the past seven years many decisions, the Court held that the IOAA amount of the FY 1998 annual fees for licensees have indicated that, although authorizes an agency to charge fees for operating reactor licensees, fuel cycle they held a valid NRC license 8Pecial benefits rendered to identifiable licens6es, materials licensees, and authorizing the possession and use of persons measured by the "value to the holders of Certificates of Compliance, special nuclear, source, or byproduct recipient"of the agency service.The registrations of sealed source and material, they were either not using the meaning of the IOAA was further devices and QA program approvals, and material to conduct operations or had clarified on December 16,197F, by four Government agencies. OBRA-90 and the disposed of the material and no longer decisions of the U.S. Court of Appeals Conference Committee Report needed the license. In response, the for the District of Columbia: National specifically state that-NRC has consistently stated that annual Coble Television Association v. Fedeml (1) The annual fees be based on the fees are assessed based on whether a Communications Commission,554 F.2d Commission's FY 1998 budget of $472.8 licensee holds a valid NRC license that 1094 (D.C. Cir.1976): National million less the amounts collected from authorizes possession and use of Association of Broadcasters v. Federal Part 170 fees and the funds directly radioactive material. Whether or not a Communications Commission,554 F.2d appropriated f.om the NWF to cover the licensee is 6ctually conducting tila (D.C. Cir.1976); Electronic NRC's high level waste progra n and the operations using the material is a matter Industries Association v. Federal general fund related to commercial of licensee discretion. The NRC cannot Communications Commission,554 F.2d vitrification of waste at the Department I

control whether a licensee elects to 1109 (D.C. Cir.1976) and Capital Cities of Energy Hanford, Washington, site and l

possess and use radioactive material Communication,Inc. v. Federal the pilot program pertaining to external once it receives a license from the NRC.

Communications Commission,554 F.2d regulation of the Department of Energy:

Therefore, the NRC reemphasizes that 1135 (D.C. Cir.1976). These decisions of (2) The annual fees shall, to the the annual fee will be assessed based on the Courts enabled the Commission to maximum extent practicable, have a whether a licensee holds a valid NRC develop fee guidelines that are still used reas anable relationship to the cost of 1

31850 Federcl Regist r/Vol. 63, No.111/ Wednesday, June 10,1998/ Rules and Regulations regulatory services provided by the dttermined that this action is a major 954 v55, as amended (42 U.S.C 2132,'2133.

Commission; and rule and has verified this detenaination 2134,2135,2233,2239). Section 2.105 also issued under Pub. L 97-415,96 Stat. 2073 (3)The annual fees be assessed to with the Office of Information and (42 ESC 2239). Sections 2.200-2.206 also those licensees the Commission, in its Regulatory Affairs of the Office of fgT,dt,$4Yg*3$,'g'5[8$,Ytat 444 aI discretion, determines can fairly, Management and Budget amended (42 U.S.C 2201 (b),(I), (o). 2236, equitably, and practicably contribute t 1.ist of Sub% cts 2282); sec. 206,88 Stat.1246 (42 U.S.C their a ment.

5846). Section 2.205(j) also issued under Pub.

Part 171, which established 20 CFR Part 2 10 '

L 101-410,104 Stat. 890. as amended by annual fees for operating power reactors Administrative Ptactice and section 31001(s). Pub. L 104-134,110 Stat.

effective October 20,1986 (51 FR 33224: pr cedure, Antitmst, Byproduct 1321-373 (28 U.S.C 2461 note). Sections September 18,1986), was challenged matenal, Classified information, 2,600-2.606 also issued under sec.102, Pub.

and upheld in its entirety in Florida Environmental protection, Nuclear L 91-190,83 Stat. 853, as amended (42 Powerand Light Company v. United matenals Nuclear power plants and U.S.C 4332). Sections 2.700s,2.719 also States,846 F.2d 765 (D.C Cir.1988)'

mactors, Penalties, Sex discrimination, issued under 5 U.S.C 554. Sections 2.754, cert. demed,490 U.S.1045 (1989).

Source material, Special nuclear 2.760. 2.770,2.780 also issued under 5 U.S.C

'Ibe NRC s FY 1991 annual fee rule material, Waste treatment and disposal.

557. Section 2.764 also issued under secs.

was largely upheld by the D.C Circmt 135,141, Pub. L 97-425,96 Stat. 2232,2241 Court of Appeals in Allied Signal v.

10 CFR Part 240 (42 U.S.C.10155,10161). Section 2.790 also issued under sec.103,68 Stat. 936, as NRC,988 F.2d 146 (D.C Cir.1993).

Criminal penalties, Extraordinary d

552.

S,,5 ded(*

C VIH. Regulatory Flexibility Analysis nuclear occurrence, Insurance, Q9,2.

d2 Intergovernmental relations, Nuclear 5 U.S.C. 553. Section 2.809 also issued under The NRC is required by the Omnibus matenals, Nuclear power plants and 5 U.S.C 553 and sec. 29. Pub. L 85-256,71 Budget Reconciliation Act of1990 to mactors, Penalties, Reporting and Stat. 579, as amended (42 U.S.C 2039).

recover approximately 100 percent ofits recordkeeping requirements.

Subpart K also issued under sec.189,68 Stat.

budget authority through the assessment Si,8h230 (

SNlO ) S' part cf user fees. OBRA-90 further requires 10 CFR Part 170 4

that the NRC establish a schedule of Byproduct material, import and L also issued under sec.189,68 Stat. 955 (42 charges that fairly and equitably export licenses, Intergovernmental U.S.C 2239). Appendix A also issued under sec. 6. Pub. L 91-560. 84 Stat.1473 (42 allocates the aggregate amount of these relations, Non byment penalties, U.S.C 2135).

Nuclear materi, Nuclear power plants Th s finafrule esfaYs'hes the and reactors, Source material, Special

2. In S 2.205, paragraph (i) is revised schedules of fees that are necessary to nuclear material.

to read as follows:

implement the Congressional mandate for FY 1998. The final rule results in a 20 CFR Part 172 g 2.206 C4vil,,,._ _ _

slight decrease in the annual fees Annual charges, Byproduct material.

charged to some licensees, and holders lioiders of certificates, registrations, (i) Except when payment is made after cf certificates, registrations, and approvals, Intergovernmental mlations, compromise or mitigation by the Department of Justim or as ordered by (pprovals. The ulatory Flexibility Non. payment penalties, Nuclear a court of the United States, following Analysis, pre in accordance with 5 materials Nuclear power plants and reference of the matter to the Attorney U.S.C. 604, is included as Appendix A reactors Source material,Special General for collection, payment of civil ts this final rule. The Small Business nuclear material.

Penalties imposed under Section 234 of Regulatory Enforcement Fairness Act of For the reasons set out in the the Act are to be made payable to the 1996 (SBREFA) was signed into law on pmamble and under the authority of the U.S. Nuclear Regulatory Commission, in March 29,1996.The SBREFA requires Atomic Energy Act of 1954, as amended

• U.S. funds, by check, draft, money cll Federal agencies to prepam a written and 5 U.S.C. 552 and 553, the NRC is order, credit card, or electronic funds compliance guide for each rule for adopting the following amendments to transfer such as Automated Clearing which the agency is required by 5 U.S.C.

10 CFR Parts 2* 140,170 and 171*

House (ACH) using Electronic Data 604 to prepare a regulatory flexibility analysis. Therefore, in compliance with PART 2-RULES OF PRACTICE FOR Interchange (EDI). Federal agencies may the law Attachment 1 to the Regulatory DCGAESTIC LICENS54G PROCEEDINGS also make payment by the On.Line Flexibility Analysis (Appendix A to this AND ISSUANCE OF ORDERS Payment and Collections System document)is the small entity (OPAC's). All payments are to be made complians guide for FY 1998, 1, The authority citation for Part 2 in accordance with the specific payment c niinues to read as follows:

instructions provided with Notices of IX. M W %

Autberity: Secs. 161,181,68 Stat. 948.

Violation that propose civil penalties The NRC has determined that the 953, as amended (42 U.S.C 2201,223th sec.

and Orders Imposing Civil Monetary backfit rule, to CFR 50.109, does not 191, as amended, Pub. L 87-615,76 Stat. 409 Penalties'.

apply to this final rule; and therefore, a (42 U.S.C 224th sec. 201,88 Stat.1242, as backfit analysis is not required for this ammded (42 U.S.C 5841); 5 U.S.C 552.

final rule because these amendments do Section 2.101 also issued under secs. 53, PART 140-FINANCIAL PROTECTION de[42 RENMEN ANMNDEMNM ts ks de ed i 10 AGREEIAENTS 3

3 9

s m a ac U.S.C 2073,2092,2093,2111,2133,2134, Chapter I.

2135); sec.114(f). Pub. L 97-425,96 Stat.

3. The authority citation for Part 140 X. Small Business bgulatory 2213, as amended (42 U.S.C 10134(f)); sec.

continues to read as follows:

102, Pd. L G1-190,83 Stat. 853, as amended Enforcement Fairness Act 142 U.S.C 4332)pec. 301,88 Stat.1248 (42 Authority: Secs.161,170,68 Stat. 948,71 In i

U.S.C 5871). Sect 13ns 2.102,2.103,2.104.

Stat. 576, as amended (42 U.S.C 2201,22101; Bus,accordance w.th the Small mess Reguh tory Enforcement 2.105,2.721 also issued under secs. 102,103, secs. 201, as amended. 202,88 Srut.1242, as Fairness Act of 1996 the NRC has 104,105,183,189,68 Stat. 936,937,938, amended, 1244 (42 U.S.C 5841,58421

Fedzrzl Rrgister/Vol. 63, No. til/ Wednesday, June 10,1998/ Rules and Regulations 31851

4. In S 140.7. paragraphs (a) and (c) the date on which the applicable (3) Fees for resident inspectors' time are revised and paragraph (d) is added indemnity agreement is effective.

and for specific inspections subject to to read as follows:

(d) Indemnity fee payments, made full cost recovery will be billed on a g gg7 p,,,'

payable to the U.S. Nuclear Regulatory quarterly basis and are payable upon Commission, are to be made in U.S.

notification by the Commission.

(a)(1) Each reactor licensee shall pay a fee to the Commission based on the funds by check, draft, money order.

(h) Method of payment. All license fee credit card, or electronic funds transfer payments, made payable to the U.S.

following schedule:

such as ACH (Automated Clearing Nuclear Regulatory Commission, are to (i) For indemnification from 5500 liouse) using EDI (Electronic Data be made in U.S. funds by check, draft, million to $400 million inclusive, a fee Interchange). Federal agencies may also money order, credit card, or electronic of $30 per year per thousand kilowatts make payments by the On-Line Payment funds transfer such as ACH (Automated of thermal capacity authorized in the and Collections S' stem (OPAC's).

Clearing House) using EDI (Electronic y

license:

Where specific payment instructions are Data Interchange). Payment of invoices (ii) For indemnification from $399 provided on the invoices, payment of $5,000 or more sSuld be paid via million to $300 million inclusive, a fee should be made accordingly, e.g.

ACH through NRC's Lockbox Bank at of $24 per year per thousand kilowatts invoices of $5,000 or more should be the address indicated on the invoice.

of thermal capacity authorized in the paid via ACH through NRC's Lockbox Credit card payments should be made license; Bank at the address indicated on the up to the limit established by the credit (iii) For indemnification from $299 invoice. Credit card payments should be card bank at the address indicated on million to $200 million inclusive, a fee made up to the limit established by the the invoice. Applicants and licensees of $18 per year per thousand kilowatts credit card bank,in accordance with should contact the License Fee and of thermal capacity authorized in the specific instructions provided with the Accounts Receivable Branch at 301-license; invoices, to the Lockbox Bank 415-7554 to obtain specific written (iv) For indemnification from 5199 designated for credit card payments.

instructions for making electronic million to $100 million inclusive, a fee payments and credit card payments.

l of $12 per year per thousand kilowatts PART 170---FEES FOR FACILITIES, of thermal capacity authorized in the MATERIALS, IMPORT AND EXPORT

7. Section 170.20 is revised to read as license; and LICENSES, AND OTHER follows:

(v) For indemnification from 599 REGULATORY SERVICES UNDER THE million to $1 million inclusive, a fee of ATOMIC ENERGY ACT OF 1954, AS

$ 170.20 Average cost por professional 56 per year per thousand kilowatts of AMENDED staff-hour.

thermal capacity authorized in the Fees for permits, licenses, license.

5. The authority citation for Part 170 amendments, renewals, special projects, (2) No fee will be less than $100 per continues to read as follows:

Part 55 requalification and replacement annum for any nuclear reactor. This fee Authority: 31 U.S.C 9701, sec. 301. Pub.

examinations and tests, other required is for the period beginning with the date L 92-314. 86 Stat. 222 (42 U.S.C 2201w);

reviews, approvals, and inspections on which the applicable indemnity sec. 201,88 Stat.1242, as amended (42 under SS 170.21 and 170.31 that are agreement is effective. The various U.S.C 5841); sec. 205. Pub. L 101-576,104 based upon the full costs for the review levels ofindemnity fees are set forth in Stat. 2842,(31 U.S.C 9011 or inspection will be calculated using the schedule in this paragraph. The

6. In Section 170.12, paragraphs (g) the following applicable professional amount ofinderr.nification for and (h) are revised to read as follows:

staff-hour rates:

determining indemnity fees will be Reactor Program (5170.21 s124 per hour.

computed by st.btracting from the

$ 170.12 Payment of fees.

Activities).

statutory limit of liability the amount of Nuclear Materials and Nu-s121 per hour, financial protection required of the (g) Inspection fees. (1) Inspection fees clear Waste Program licensee. In the case of licensees subject will be assessed to recover full cost for 1617 31 Activinest to the provision of S 140.11(a)(4), this each resident inspector assigned to a

a. In S 170.21, the introductory text, total amount will be the amount, as specific plant or facility. The fees will Category K in the table, and footnotes 1 determined by the Commission, of the be assessed for all of the resident and 2 to the table are revised to read as financial protection availabb t.,

inspectors' time, excluding leave and follows:

licensees at the close of the calendar time spent by a resident inspector in year preceding the one in which the fee support of activities at another site. The, 3 7,,,,

and utstization faceties, review of standard becomes due. For those in.tances in hours will be billed at the appropriate referenced design approvals, special which a certified financia statement is hourly rate established in S 170.20.

projects, inspections and import and export provided as a guarantee clpayment of (2) Fees for all inspections subject to licenses.

deferred premiums in accordance with full cost recovery will be assessed on a Applicants for construction permits,

$ 140.21(e), a fee of $1,000,or the per inspection basis for costs incurred manufacturing licenses, operating l

indemnity fee, whichever is greater, is up to approximately 30 days after licenses, import and export licenses, required.

Issuance of the inspection report.

approvals of facility standard reference i

Inspection costs include preparation designs, requalification and replacement (c) Each person licensed to possess time, time on site, documentation time, examinations for reactor operators, and and use plutonium in a plutonium and follow-up activities and any special projects and holders of processing and fuel fabrication plant associated contractual service costs, but construction permits, licenses, and shall pay to the Commission a fee of exclude the time involved in the other approvals shall pay fees for the 55,000 per year for indemnification.

processing and issuance of a notice of following categories of services:

This fee is for the period beginning with violation or civil penalty.

l l

l L__-___-__--_________

• 8 31852 l'ederal Register / Vol. 63. No.111/ Wednesday, June 10,1998 / Rules and Regulations SCHEDULE OF FAC'LITY FEES

[See footnotes at end of table]

Facihty categones and type of fees Fees 12 K. Import and export bcenses:

Licenses for the import and export only of production and utilization facilities or the export only of components for produc-tion and utshzation facilities issued pursuant to 10 CFR Part 110:

1. Application for import or expost of reactors and other facihties and exports of components whch must be reviewed by the Commissioners and the Executive Branch, for example, actions under 10 CFR 110A0(b).

j Apphcaton-new license

$7,900 Amendment

$7,900

2. Apphcation for export of reactor and other components requinng Executive Branch review only, for example, those actons under 10 CFR 110A1(a)(1H8).

Apphcation-new heense

$4,800 Amendment

$4,800

3. Aplcation for export of components requinng foreign govemment assurances only.

Apphcaton-new heense

$2,800 Amendment

$2,800

4. Apphcation for export of facihty components and equipment not requiring Commissioner review, Executive Branch review, or foreign govemment assurances.

Apphcation-cew heense

$1,200 Amendment

$1,200

5. Minor amendment of any export or import bcense to extend the expiraton date, change domestc informaton, or make other revisons whch do not require irMiepth analysts 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 specife exemption provision of the Commisson's regulations under Title 10 of the Code of Federal Regulations (e.g., $6bo.12,73.5) and any other sections now or hereafter in effect regardless of whether the approval is in the form of a Icense amendment, le'ter of approval, safety evaluation report, or other form. Fees for hcenses in this schedule that are initially assued for less than full power are based on review through the issuance of a full power bcense (generaHy fun power is considered 100 percent of the facahty's full rated power). Thus, if a licensee received a low power license or a temporary hcense for less than full power and subsequently receives full power authonty (by way of Icense amendment or otherwise), the total costs for the Icense win be deterrmned through that penod when authonty is granted for full power operaton. If a situation anses in whch the Commisson de-termines that full operating power for a partcular facahty should be less than 100 percent of full rated power, the total costs for the hcense will be at that determined lower operating power level and not at the 100 percent capacity.

• FuH cost fees will be determined based on the professional staff time and appropnate contractual support services expended. For apphcations currendy on file and for which fees are determined based on the fun cost expended for the review, the professional statt hours expended for the review of the applicaton up to the effectrve date of the final rule will be determined at the professional rates in effect at the time the servce was provided. For those apphcatons curr on file for whch review costs have reached an applicable fee cathng established by the June 20,1984, and July 2,1990, rules but are still poi completion of the revie'w, the cost incurred after any apphcable ceihng was reac6ed through January 29,1989, win not be belled to the apphcant. Any professional staff +ours expended above those ceshngs on or after January 30,1989, wtN be as-sessed at the apphcable rates estabhshed by 9170.20, as appropnate, except for topical reports whose costs exceed $50,000. Costs whch ex-coed $50,000 for any topical report, amendment, revison or supplement to a topcal report completed or under review from January 30,1989, through August 8,1991, will not be t;illed to the appleant. Any professional hours expended on or after August 9M991, will be assessed at the apphcable rate estabhshed in 6170.20. In no event will the total review costs be less than twice the hourty rate shown en 6170.20.

$ 170.31 Schedule of fees for meterials materials licenses, or import and export iloenees and other regulatory services

• licenses shall pay fees for the following

9. Section 170.31 is revised to read as including wiena, and import and q%g ga m gy, includes fees for health and safety and

. Applicants for maten. ls licenses, safeguards inspections where a

import and export licenses, and other

,PP g;,.

i regulatory services and bolders of SCHEDULE OF MATERIALS FEES

[Sei footnotes at end of table]

Category of rnaterials hcenses and type of fees' Fee 2 8

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

License, renewal, amendment Full Cost.

Inspections -

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 material in sealed sources contained in devices used in industrial measuring systems, including x-ray fluorescence analyzers:*

AppicatorHNew Icense

$560.

Amendment -

$380.

__________-__-_______-_________________-__-________________-___________-__n

.. +

Federal Regist:r/Vol. 63, No.111/ Wednesday, June 10,1998 / Rules and Regulations 31853 SCHEDULE OF MATERIALS FEES-Continued

[See footnotes at c id of tabiel Category of materials Icenses and type of fees 5 Fee 3 z

D. All other special nuclear matenal licenses, except Icenses authorizing special nuclear matenal in unsealed form in cor+

binaten that would constnute a entical Quantity, as defined in $ 150.11 of this chapter, for whch the hcensee shall pay the same fees as those for Category ' A: 4 Appication-New fcense

$750.

Amendment.

S290.

E. Licenses or certificates for construction and operaton of a uranium ennchment facihty.

License, renewal, amendment.

Full Cost.

Inspectons -

Full Cost.

2. Source matenal:

A.(1) Licenses for possession and use of source matenal in recovery operatons such as milling, irksitu leaching, heapleach-ing, refining uranium mill concentrates to uranium hexafluonde, ore buying stations, son exchange facihties and in process-ing of ores containing source matenal for extracton of metals other than uranium or thorium, including heenses authonzing the possession of byproduct waste material (tashngs; from source matenal recovery operations, as well as hcenses author-izing the possession and maintenance of a facihty m a standby mode:

Lcense, renewal, amendment Full Cost.

a Inspectons.

Full Cost.

(2) Licenses that authonze the recerpt of byproduct material, as defined in Section 11e(2) of the Atomic Energy Act, from other persons for possesson and d6posal except those heenses subject to fees in Category 2.A.(1).

License, renewal, amendment Full Cost.

Inspections Full Cost.

(3) Licenses that authonze the receipt of byproduct matenal, as defined in Section 11e(2) of the Atome Energy Act, from other persons for possesson and disposal incidery.al to the disposal of the uranium waste taihngs generated by the bcens-ee's milhng operations, except those Icenses sub/ect to the fees in Category 2.A.(1).

Lcense, renewal, amendment Full Cost.

Inspections Full Cost.

B. Licenses which authonze the possesson, use 4 ad/or installation of source matenal for shielding:

AppicatiorwNew heense

$120.

Amendment

$280.

C. All other source matenal heenses:

Apphcation-New hcense

$3,600.

Amendment -

$560.

3. Byproduct matenal:

A. Licenses of broad scope for possession and use of byproduct matenal issued pursuant to Parts 30 and 33 of this chapter for processing or manufactunng of stems containing byproduct matenal for commercial distnbution:

ApphcCior>New hcense

$3.800.

Amendment.

5530.

B. Other heenses for possesson and use of byproduct material issued pursuant to Part 30 of this chapter for processing or manufactunng of items containmg byproduct matenal for commercial distnbution:

Aw-W,.. L hcense 51,500.

Amendment 5560.

C. Lconses issued pursuant to $$ 32.72,32.73, and/or 32.74 of this chapter authorizing the processing or manufacturing and distnbution or redistribution of radopharmaceutcals, generators, reagent kits and/or sources and devices containing by-product matenat. This category does not apply to Icenses issued to nonprofit educational institutions whose processing or manufactunng is exempt under 6170.11(a)(4). These Icenses are covered by fee Category 3D.

ApphcaterwNew Icense

$6,800.

Amendment 5630.

D. Licenses and approvals issued pursuant to $632.72. 3213, and/or 32.74 of this chapter authorizing distnbution or redes-tnbuten of radiopharmaceuticals, generators, reagent lots and/or sources or devices not involving processing of byproduct material. This category indudes licenses issued pursuant to $$ 32.72. 32.73, and/or 32.74 of this chapter to nonprofit edu-cational institutions whose processing or manufactunng is exempt under $ 170.11(a)(4).

App-M. L bconse

$1.900.

Amendment.

$420.

E. Licenses for possession and use of byproduct material in sealed sources for irradiation of matenals in which the source is not removed from its shield (self-shielded units):

Aw--

= hoense

$1.100.

Amendment

$380.

F. Lkenses for possession and use of less than 10,000 curies of byproduct material in sealed sources for irradiation of mate-rials in whidi the source is exposed for irradiation purposes. This category also includes underwater irradiators for irradia-tion of matenals where the source is not exposed for irradiation purposes.

Appication-New heense

$1,900.

Amendment.

5440.

G. Licenses for possession and use of 10,000 cunes or more of byproduct matenal m aled sources for irradiation of mate-l rials in which the source is exposed for irradiaton purposes. This category also includes underwater irradiators for irradia-ton of matenals where the source is not exposed for irradiaton purposes.

Appicaton-New hcense S4,500.

Amendment._..

$740.

H. Licenses issued pursuant to Subpart A of Part 32 of this chapter to distnbute items containing byproduct matenal that re-quere devce review to persons exempt from the kcensing requirements of Part 30 of tnis chapter, except specific hcenses I

authonzing redistnbution of stems that have been aethonzed for distnbution to persons Mmot from the licensing require-l ments of Part 30 of this chapter:

Appicator>New hcense

$2,700.

(

l

~'

31854 Federd Register /Vol. 63 No. til / Wednesday, June 10,1998 / Rules and Regulations l

SCHEDl;LE OF MATERIALS FEES-Continued

[See footnotes at end M table]

Fee 23 Category of materials hcenses and type of fees *

$1,000.

Amendment -

L Licenses issued pursuant to Subpart A of Pert 32 of this chapter to distroute items containing byproduct material or quan-tities of byproduct matenal that do not require device evaluation to persons exernpt from tne Icensing requirements of Part 30 of this chapter, except for speofc hcenses authorizing redistnbution of items that have been authonzed for distnbuten to persons exempt from the icensing requirements of Part 30 of this chapter:

$4,400.

Appicaton-New icense

$1,000.

Amendment J. Lcenses issued pursuant to Subpart B of Part 32 of this chapter to distnbute stems containing byproduct matenal that re-quire sealed source and/or device review to persons generally hcensed under Part 31 of this chapter, except specifc h-conses authonzing redistnbution of stems that have been authon2ed for distnbuton to persons generally hcensed under Part 31 of th:s chapter:

$1,700.

Appicator>-New heense

$300.

Amendment -

K. Lcenses issued pursuant to Subpart B of Part 32 of this chapter to distnbute items containing byproduct matenal or quan-tities of byproduct matenal that do not require sealed source and/or devce review to persons generally licensed under Part 31 of this chapter, excvt specife hcenses authonzing redsstnbution of items that have been authonzed for distnbuton to persons generally Icensed under Part 31 of this chapter:

$1,000.

Appicatort-New hcense Amendment.

$340.

L. Licenses of broad scope for possesson and use of byproduct matenalissued pursuant to Parts 30 and 33 of this chapter for research and development that do not authonze commercal distnbutert.

$5,400.

Apphutert-New icense

$760.

Amendment.....

M. Other hcenses for possession and use of byproduct matenal issued pursuant to Part 30 of this chapter for research and development that do not authorize commercial distnbution:

$1,800.

Appicaton-New hcense

$620.

Amendment.

N. Licenses that authonze servces for other kcensees, except:

(,) Licenses that authonze only cahbration and/or leak testing servces are subject to the fees specified in fee Categocy 3P; and (2) Lcenses that authonze waste disposal servces are subject to the fees specified in fee Categones 4A,48, and 4C:

$2.000.

Appicatior>-New Icense

$500.

Amendment O. Licenses for possesson and use of byproduct matenal issued pursuant to Part 34 of this Chapter for industnal radiogra-phy operations:

$4.300.

Appication-New Icense 5680.

Amendment :

P. All other spoofc byproduct matenal Icenses, except those in Categones 4A through 9D:

$730.

Apt-,A,e-1. heense _

$340.

Amendment

4. Waste disposal and processing A. Licenses spoofcally authonzing the receipt of waste byproduct material, source matenal, or speoal nuclear matenal from other persons for the purpose of mntingency storage or mmmeraal land disposal by the hcensee; or icenses authorizing contingency storage of low-level radioactive waste at the site of nuclear power reactors; or hcenses for receipt of waste from other persons for incinerata or other treatment, packaging of resulting waste and residues, and transfer of packages to another person authonzed to recerve or dispose of waste matenal:

Full Cost.

License, renewal, amendment.

Full Cost.

Inspectons B. Licenses spoofcally authonzing the receipt of waste byproduct matenal, source matenal, or specal nuclear matenal from other persons for the purpose of padaging or repackaging the matenal. The hcensee will dispose of the matenal by trans-f ar to another person authonzod to rec:pve or dispose of the matenal:

$2,500.

Appleation-New Icense

$520 Amendment _

C. Licenses speofcalty authonzing the receipt of prepackaged waste byproduct material, source matenal, or special nuclear matenal from other persons. The licensee will dispose of the material by transfer to another person authonzed to rece#ve or dispose of the matenal:

$2200.

Appicaton-New hcense

$220 Amendment

5. Well logging-A. Licenses for possession and use of byproduct material, source matenal, and/or special nuclear material for well logging, well surveys, and tracer studies other than field flooding tracer studies:

$3,400.

Apphcation-New teense 5820.

Amendment B. Lcenses for possesson and use of byproduct matenal for field flooding tracer ctudies:

Full Cost.

License, renewal, amendment

6. Nuclear laundnes:

A. Lcenses for ccmmercial collection and laundry of items contaminated with byproduct matenal, source matenal, or special nuclear material:

Appicaton-New heense

$6,400.

$ 1,000.

Amendment -

7. Medical Icenses:

Fed:rzl Regilt:r/Vol. 63. No. til / Wednesday, June 10,199d/ Rules and Regulations 31855 SCHEDULE OF MATERIALS FEES-ConMued (See footnotes at end of table]

Category of matenals hcenses and type of fees' Fee 88 A. Licenses issued pursuant to Parts 30,35,40, and 70 of this chapter for human use of byproduct matenal, source mate-nat, or special nuclear matenal in sealed sources contained in teletherapy devices:

$3.500.

Apphcation-New heense

$390.

Amendment -

B. Licenses of broad scope issued to medcal institutions or two or more physicians pursuant to Parts 30,33,35,40, and 70 of this chapter authonzing research and development, including human use of byproduct matenal, except hcenses for by-product matenal, source material, or special nuclear matenal in sealed sources contained in teletherapy devices:

$3.800.

App 4 cation-New icense

$710.

Amendment :

C. Other licenses issued pursuant to Parts 30,35,40, and 70 of this chapter for human use of byproduct matenal, source material, and/or soecial nuclear matenal, except hcenses for byproduct material, source material, or special nuclear mate-nel an sealed sources contained in teletherapy devces:

$1,800.

ApplicatiorwNew icense

$450.

Amendment

8. CMI defense:

A. Licenses for possession and use of byproduct material, source matenal, or special nuclear matenal for ctvil defense activk ties:

$570.

Application.--New Imense

$400.

Amendment -

9. Devce, product, or sealed source safety evaluation:

A. Safety evaluation of devees or products cor,taining byprodu:t material, source matenal, or speciaf nuclear materiat, ex-cept reactor fuel devices, for commercial distnbution:

$3,600.

Appication-each devce -

Amendment-each devce.

$590.

B. Safety evaluatron of devees or products containing byproduct matenal, source material, or special nuclear matenal manu-factured in accordance with the unique specifications of, and for use by, a single apphcant, except reactor fuel devices:

$2,100.

Appication-each devce Amendment-each devce.

$1,100.

C. Safety evaluation of sealed sources containing byproduct matenal, source material, or special nuclear matenal, except re-actor fuel, for commercial distnbution:

$910.

Appication-each source

$610.

Amendment-each source D. ?atety evaluation of sealed sources mntaining byproduct material, source matenat, or special nuclear matenal, manufac-tured in accordance with the unique specifications of, and for use by, a single apphcant, except reactor fuel:

$460.

Appication-each source

$160.

Amendment-each source

10. Transportation of radioactive matenaf:

A. Evaluation of casks, packages, and shipping containers:

Full Cost, Approval, renewal, amendment Full Cost.

inspections -

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

$340.

Appication-Approval -

$620.

Amendment.

Full Cost.

Inspections

11. Review of standardized spent fueliacihties:

Full Cost.

Approval, renewal, amendment -

Full Cost.

Inspections

12. Special projects:a Full Cost.

Approvals and prospphcation/ Licensing activities Full Cost.

Inspections

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

Full Cost.

Approvals Full Cost.

Amendments, revisions, and supplements...

Full Cost.

j Reapproval Full Cost.

{

B. Inspections related to spent fuel storage cask Certifcate of Comphance _

Full Cost.

C. Inspections related to storage of spent fuel under $72.210 of this chapter _

)

14. Byproduct, source, or special nuclear matenal hoenses and other approvals authorizing decommissioning, decontamination, j

I reclamation, or site restoration activities pursuant to Parts 30,40,70, and 72 of this chapter:

Full Cost.

Approval, renewal, amendment -

Full Cost.

.m Inspections _.

15. Import and Export iconses:

Licenses issued pursuant to Part 110 of this chapter for the inport and export only of special nuclear matenal, source mate-rial,intium and other byproduct matenal, heavy water, or nuclear grade graphite, A. Apphcation for export or import of high entched uranium and other materials,ircluding radioactive waste, which must be reviewed by the Commissioners and the Executive Branch, for example, those actions undet 10 CFR 110.40(b).

This category includes appleation for export or import of radioactive wastes in multiple forms from multiple generators or brokers in the exporting country and/or going to muttspie treatment, storage or disposal facihties in one or more re-ceiving countnes.

$7,900.

Apphcation-new hcense

$7,900.

Amendment

31856 Federd Registir/Vol 63 No. til/ Wednesday, June 10,1998 / Rules and Regulations SCHEDULE OF MATERIALS FEES-Continued

[See footnotes at end of tabiel Fee F 8 Category of materials hcenses and type of fees' B. Apphcation for export or import of special nuclear matenal, source matenal, intrum and other byproduct matenal, heavy water, or nuclear grade graphite, including radioactive waste, requinng Executwe Branch review but not Com-missioner review. Thts category includes apphcation for the export or import of radcactwo waste involving a single form of waste from a single class of generator in the exporting country to a single treatment, storage and/or disposal facility in the receiving country.

54.800.

Apphcaton-new heense.

54,800.

Amendment _.

C. Appkcaton for export of routine reloads of low ennched uranium reactor fuel and exports of source matenal requinng only foreign govemment assurances under the Atome Energy Act.

$2,800.

Apphcaton-new kense Amendment --

$2.8)0.

D. Apphcation for export or import of other matenals, including radioactwo waste, not requinng Commissioner review, Executive Branch review, or foreign govemment assurances under the Atomic Energy Act. This category includes ay phcation for export or import of radcactwo waste where the NRC has prevously author:2ed the export or import of tha same form of waste to or from the same or similar partres, requinng only confirmation from the receiving facahty and fi-censing authonties that the shipments may proceed according to prevously agreed understandings and procedures.

$1,200.

Apphcation-new hcense 51,200.

Amendment.

E, Minor amendment of any export or import hcense to extend the experation date, change domeste information, or make other revisions whch do not require irxlepth analysis, review, or consultations with other agencies or foreign governments.

$180.

Amendment

16. Reciprocity:

Agreement State lecensees who condud actwitnes under the reciprocity provisions of 10 CFR 15020.

3 f,100.

Appication (initial fihng of Form 241)

$200.

Revisons.

• Types of fees-Separate charges, as shown in the schedule, will be assessed for preappicaton consultatens and reviews and applications for new bceisses and approvals, issuance of new iconses and approvals, amendments and certain renewals to exssting hoenses and approvals, safety evaluatons of sealed sources and devices, and certain inspections. The following guidehnes apply to these charges:

(a) Appicaton fees. Apphcatons for new matenais heenses avi approvals; applications to reenstate expired, terminated or inactwo hcenses and approvals except those subject to fees assessed at full costs, and appbcatons ided by Agreement State hcensees to register under the gen-eral bcense provisens of 10 CFR 15020, must be accompanied by the presenbed appicaten fee for eadi category, except that:

(1) Applications for Icenses covenng more than one fee category of speaal nuclear matenal or source matenal must be accompanied by the presenbed apphcation fee for the highest fee category.

(b) Lcense/amvabew fees. Fees for applications for new beenses and approvals and for preapphcaton consultations and reviews subjed to futi cost fees (fee Cat 1 A,18,1E 2A,4A,58,10A,11,12,13A, and 14) are due upon notifcaton by the Commissson in accordance with $ 170.12(b), (e), and.. Appbcations subject to Full Cost. fees (fee Categones 1A,1B,1E 2A,4A,58,10A.11,13A, and 14) are due (c) R..

.1 - -- sat upon notrhcation the Cwi

- in accordance with $170.12(d).

App w% lor amendments to bcenses and approvals and revisions to reciprocity initial apphcatons, except those subject to fees as-sessed at full costs, must be accompanied by the presenbed amendment /revison fee for each hcense/revisson affeded. An appleaton for an amendment to a teense or approval classsfeed in more than one fee category must be s.wnpr.r ed by the prescnbed amendment fee for the category affected by the amendment unless the amendment is appicaDie to two or more fee categories in wtuch case the amendment fee for the highest fee miegory would appfy. For those hcenses and approvals sutject to full costs (fee Categones 1A,18,1E. 2A,4A,58,10A,11,12, 13A, and 14), amendment fees are due upon notification by the Commisson in accordance with $ 170.12(c).

(2) An apphcston for amendment to a rnatenals Icense or approval that would place the Iconse or approval in a higher les category or add a new fee category must be accompanied by the presenbed apphcation fee for the new category.

(3) An apphcaton for amendment to a icense or approval that would reduce the scope of a hcensee's program to a lower fee category must be.wwiy r 6d by 179 prescribed amendment fee for the lower fee category.

(4) Appm 64 to termsnate iconSes authonzing small matenals programs, when no cksmanthng or demntamination procedure is required, are not sub oct to fees.

l (e) inspectort fees. Inspect ons resulting from investigations conducted by the Office of investigetsons and nonroutine 'nspections that result from third party aliegatons are not sub ect to fees. In on fees are due upon notification by the Cui,6-6.,wi in amordance with $ 170.12(g).

t s Fees will not be diarged for orders issued by the misson pursuant to 10 CFR 2.202 or for amendments resulting specificany from the re-currements of these types of Commisson orders. However, fees wdl be charged for approvals issued under a speafc exempton provision of the Comrnesson's repstehons under True 10 of the Code of Federal Regulatons (e g.,10 CFR 30.11,40.14,70.14,73.5, and any other sections now or hereaf;er in ened) regardless of whether the approval is in the form of a lecense amendment, letter of approval, safety evaluation report, or other form. b addstion to the fee shown, an applcant may be assessed an additona; fee for sealed source and device evaluatons as shown an Categones wA through 90.

8 Full cost fees wdf be determined based on the professional staff time and appropriate contractual support services expended. For those apph-catons currentty on fde and for whch fees are determined based on the Full Cost. expended for the review, the professional staff hours ex-pended for the review of the appleaton up to the effective date of the final rule wdl be determined at the professional rates in effect at the time the servce was

d. For apphcatons currently on fde for whch review costs have reached an le fee ceiling estabhshed by the June 20,1984, and 2,1990, rules, but are still pending completon of the review, the cost incu after any applicable ceihng was reached through January

,1989, will not be billed to the applicant. Any professional staff-hours expended above those ceihngs on or after January 30, 1989, wdl be assessed at the appleab6e rates estabhshed by $ 17020, as appropnate, except for topcal reports whose costs exceed $50,000.

Costs whicti exceed $50.000 for each topeal report, amendment, revision, or supplement to a topcal report completed or under review from Jan-I f

uary 30,1989, through August 8,1991, wdl not be bdled to the apphcant. Any professional hours expended on or after August 9,1991, will be assessed at the apphcab6e rate estabhshed in $ 17020. The mensmum total review cost is twice the hourly rate shown in $ 17020.

l

• Leensees paying fees under Categones 1 A,1B, and 1E are not subject to fees under Categones 1C and 1D for sealed sources authonted in the same Icense except m those instances in which an apphcation deals only wfth the sealed sources authonzed by the beense. Apphcants for new bcenses that cover both byproduct matenal and special nuclear matenal m sealed sources for use en gauging devces wdl pay the appro-pnate apphcaton fee for fee Category 1C onty.

5 Fees wdl not be assessed for requestsheports submitted to tne NRC:

Federal Register /Vol. 63. No. til / Wednesday, June 10.1998 / Rules and Regulations 31857

' a) in rssponse to a Gznenc Letter or NRC Duftet n that does not result in an amendment to the license, does not res

(

temate method or reanalysis to meet the requirements of tha Genenc Letter, or does not involve an unreviewed safety issue; (b) in response to an NRC reouest (at the Associate Office Director level or above) to resolve an identified safety, safeguards, or environ-mental issue, or to assist NRC in developing a rule, regulatory guide, pokcy statement, genenc letter, or bulletin; or (c) As a means of exchanging information between industry organtrations and the NRC for the purpose of supporting generic regulatory im-provements or ettons.

PART 171-ANNUAL FEES FOR

12. In 171.15, paragraphs (b), (c) that do not result in a license or are not REACTOR OPERATING LICENSES, introductory text (c)(1), (c)(2). (e), and associated with a license; international AND FUEL CYCLE LICENSES AND (f) are revised to read as follows:

cooperative safety program and MATERIALS LICENSES, INCLUDING HOLDERS OF CERTIFICATES OF fc\\I1 Annual Feee: Reactor operating international safeguards activities: low-5 level waste disposal generic activities; n

COMPLIANCE, REGISTRATIONS, AND uranium enrichment generic activities.

QUALITY ASSURANCE PROGRAM APPROVALS AND GOVERNMENT (b) The FY 1998 annual fee for each (2) Activities not currently assessed AGENCIES LICENSED BY NRC oPeratm power reactor which must be under 10 CFR Part 170 licensing and inspection fees b Commission poh.ased on existin8 collecte by September 30,1998, is

10. The authority citation for Part 171

$2,976,000. This fee has been cy, e.g., reviews and continues to read as follows:

determined by adjusting the FY 1997 inspections conducted of nonprofit educa

$' "d cost that Authority: Sec. 7601. Pub. L 99-272.100 annual fee,(prior to rounding) 9 )d not from.,

Stat.146, as amended by sec. 5601, Pub. L.

downward by about 0.1 percent. In the 100-203,101 Stat.1330 as amended by sec.

FY 1995 final rule, the NRC stated it entities based on Commission policy in amended by sec. 6101, Pub. L 101-508,104 would stabilize annual fees by adjusting accordance with the Regulatory 3201, Pub. L 101-239.103 Stat. 2106 as the annual fees on Flexibility Act.

change (plus or m.ly by the percentage Stat.1388. (42 U.S.C. 2213); sec. 301. Pub. L mus) in NRC,s total 92-314,86 Stat. 222 (42 U.S.C. 2201(w)); sec. 201,88 Stat.1242, as amended (42 U.S C.

budget authority and adjustments based (e) The FY 1998 annual fees for SP41); sec. 2903, Pub. L 102-486.106 Stat.

on chan8es in 10 CFR Part 170 fees as licensees authonzed to operate a 3125,(42 U.S.C. 2214 note).

well as on the number of licensees nonpower (test and research) reactor

11. Section 171.13 is revised to read Paying the fees. The first adjustment to licensed under Part 50 of this chapter, as follows.

the annual fees using this method except for those reactors exempted from occurred in FY 1996 when all annual fees under $ 171.11(a), are as follows:

$ 171.13 Notice.

fees were decreased 6.5 percent below Researcti reactor.

$57.300 The annual fees applicable to an the FY 1995 annual fees. The FY 1997 Test reactor

$57,300 operating reactor and to a materials annual fees were also det mined by licensee, including a Government using this method. The FY 1997 annual (f) For each fiscal year, annual fees for agency licensed by the NRC, subject to fees increased 8.4 percent above the FY operating reactors will be calculated and this part and calculated in accordance 1996 annual fees. The FY 1995 annual assessed in accordance with $ 171.13.

with $$ 171.15 and 171.16, will be fee was comprised of a base annual fee

13. In S 171.16, the introductory text published as a notice in the Federal and an additional charge (surchargel, and table of paragraph (c) and Register as soon as is practicable but no The activities comprising the base FY Paragraphs (c)(1), (c)(4), (d), and (e) are later than the third quarter of the fiscal 1995 annual fee are as follows:

revised to Ivad as follows:

year.The annual fees will become due (1) Power reactor safety and

$ 171.16 Annual Fooe: Material Licenesee, and payable to the NRC in accordance safeguards regulation except licensing Holdere of certificanoe of compuence, with $ 171.19 except as provided in and inspection activities recovered Holdere of Sealed Source and Device

$ 171.17. Quarterly payments of the -

under Part 170 of this chapter.

Regletratione, Holdere of Quality Assurance ar.nual fees of $100,000 or more will (2) Research activities directly related Program Approvale and Govemment continue during the fiscal year and be to the regulation of power reactors.

Agenclee Licensed t>y the NRC.

based on the applicable annual fees as (3) Generic activities required largely shown in $$ 171.15 and 171.16 until a for NRC to regulate power reactors, e.g.,

(c) A licensee who is required to pay notice concerning the revised amount of updating part 50 of this chapter, or an annual fee under this section may the fees for the fiscal year is published operating the Incident Response Center, qualify as a small entity. If a licensee by the NRC. lf the NRC is unable to (c) The activities comprising the FY qualifies as a small entity and provides publish a final fee rule that becomes 1995 surcharge are as follows:

the Commission with the proper effective during the current fiscal year, (1) Activities not attributable to an certification, the licensee may pay then fees would be assessed based on existing NRC licensee or class of reduced annual fees for FY 1998 as the rates in effect for the previous fiscal licensees; e.g., reviews submitted by follows:

year.

Other government agencies (e.g., DOE)

Maximum j

annual fee per hcensed category Small Businesses Not Engaged in Manufacturing and Small Not-For-Profit Organizations (Gross Annual Receipts):

$350,000 to $5 milhon 51.800 l

Less than $350.000 400 Manufactunng entities that have an average of 500 employees or less:

35 to 500 employees 1,800 Less than 35 employees 400 Small Govemmental Junsdictions (includmg publicly supported educational institutions) (Population):

I o

31858 Fed:r:1 Regist:r/Vol. 63. No.111/Weunesday, }une 10,1998 / Rules and Regulations Maximum annual fee per heensed category 20,000 to 50,000.

1,800 Less than 20,000

~...........

400 Educational Institutions that are not State or Pubhety Supported, and have 500 Employees or Less:

35 to 500 employees t,800 Less than 35 employees 400 (1) A licensee qualifies as a small which must be collected by September adjustment to the annual fees using this cntity ifit meets the size standards 30,1998, have been determined by method occurred in FY 1996, when all established by the NRC (See 10 CFR adjusting downward the FY 1997 exact annual fees were decmased 6.5 percent 2.810).

annual fees (prior to rounding), by about below the FY 1995 annual fees. The FY 0.1 percent. As a result of rounding, the 1997 annual fees were also determined e

(4) For FY 1998, the maximum annual FY 1998 annual fee for some fee by using this method. The FY 1997 categories is the same a's the FY 1997 a smaU en ty is required to pay is annual fee. In the FY 1995 final rule, the annual fees were incret. i,d 8.4 percent above the FY 1996 annual fees. The FY 1,8 0 or a category app e to cense,

NRC stated it would stabilize annual fees by adjusting the annual fees only b 1995 annual fee was comprised of a basa (d) The FY 1998 annual fees for the percentage change (plus or mmus) y annual fee and an additional charge-materials licensees and holders of in NRC s total budget at:thonty and (surcharge). The activities comprising c;rtificates, registrations or approvals adjustments based on changes in to CFR the FY 1995 surcharge are shown for subject to fees under this section are Part 170 fees as well as on the number convenience in paragraph (e) of this shown below. The FY 1998 annual fees, of licensees paying the fees. The first section.

SCHEDULE OF MATERIALS ANNUAL FEES AND FEES FOR GOVERNMENT AGENCIES LICENSED BY NRC

[See footnotes at end of table]

A Category of matenals hcenses p ""$b

1. Special nuclear matenal:

A. (1) bcenses for possesson and use of U--235 or plutonium for fuel fabncation actnntses.

(a) Strategic Special Nudear Matenat:

Baboock & Wilcox SNW42

$2.604.000 Nuclear Fuel Serv 6ces SNW124 2,604.000 (b) Low Ennctied Uranium in Despersible Form Used for Fabncation of Power Reactor Fuel:

Combuston Engmeenng (Hematite) SNW33 1,278,000 General Electnc Company SNW1097 1,278 000 Siemens NMaar Power SNW1227 1,278.000 Westinghouse Electnc Company SNW1107 1,278,000 (2) AR other special nudear matenals hoenses not induded in Category 1.A.(1) which are bcensed for fuel cyde activit>es.

(a) Facihtees wtth hmited operatanns:

B&W Fuel Company SNW1168 508,000 (b) AllOthers:

General Electric SNW960 -

345,000 B. Licenses for receipt and storage of spent fuel at an independent spent fuel storage installation (ISFST).

283,000 C. Ucenses for possession and use of special nuclear material in sealed sources contained in devoes used in industnal measunng systems, induding x-ray fluorescence analyzers 1.300 D. AB other speoat nuclear material heenses, except Econses authonzing speoal nuclear material in unsealed torm in com-binataort that would constitute a critical quantry, as defined in $150.11 of this chapter, for which the bconsee shaN pay the same fees as those for Category 1.A.(2).

3,100 E. Licenses or certifiantes for the operaten of a uranium ennchment facility 2,604.000

2. Source mater %l-A. (1) Uoenses for possesson and use of source material for refining uranium min concentrates to uranium hexafluonde..

648,000 (2) Ocenses for possession and use of source material in recovery operatons such as milling, irt-situ leactung, heap-leacts-Ing, ore buying statens, ion exchange facihties and in prwe&,iq of ores dads source material for extraction of met-als other than uranium or thonum, including hcenses authorizing the possession of byproduct waste material (tailings) from source meterial recovery operatons, as weft as bcenses authonzing the possession and maintenance of a facihty in a stancby mode.

Class I facihties

• _

Class il fachtnes*

61,700 Other facihtees

• 34,900 22,300 (3) Licenses that authonze the receipt of byproduct matenal, as defined in Secten 11e.(2) of the Atomic Energy Act, from other persons for possession and disposal, except those bcenses subject to the fees in Category 2.A.(2) orCategory 2.A.(4) 45.300

[

(4) Licenses that authorize the receipt of byproouct matenal, as defined in Secton 116.(2) of the Atomic Energy Act, from l

other persons for possession and disposal inodental to the disposal of the uranium waste taihngs generated by the li-censee's milhng operatons, except those heenses subject to the fees in Category 2.A.(2) 8,000 B. Ucenses which authorize only the possession, use and/or installation of source mstenal11r shielding C. All other source matenal hcenses 490 B,700

I Fzdml R:gister/Vol. 63, No.111/ Wednesday, June 10.1998/ Rules and Regulations 31859 SCHEDULE OF MATERIALS ANNUAL FEES AND FEM, FOR GOVERNMENT AGENCIES LICENSED BY NRC-Continued

(

[See footnotes at end of table]

Category of matenals hcenses nua{

p 1

l

3. Byproduct material:

A. Licenses of broad scope for possession and use of byproduct matenalissued pursuant to Parts 30 and 33 of this chap-ter for processing or manufactunng of items containing byproduct matenal for commercial distribution.

16.600 B. Other heenses for possession and use of byproduct material issued pursuant to Part 30 of this chapter for processing or j

manufactunng of items containing byproduct matenal for commercial distnbuten S.600 C. Licenses irsued pursuant to $$32.72,32.73, and/or 32.74 of this chapter authonzing the processing or manufactunng and distnbution or redistnbuton of radiopharmaceutcais, generators, reagent kits and/or sources and devices containing byproduct matenal. This category also includes the possesson and use of source matenal for shielding authonzed pursu-ant to Part 40 of this chapter when included on the same hcense. This category does not apply to Icenses issued to non-profit educational enstitutem whose processing or manufactunng is exempt under $ 171.11(a)(1). These hcenses are cov-ered by fee Category 3D 11,200 D. Licenses and approvals issued pursuant to $$ 32.72,32.73, and/or 32.74 of this chapter authorizing distnbuten or redis-tribution of radiopharmaceutcals, generators, reagent kits and/or sources or devees not involving processing of byprod-uct matenal. This category includes hcenses issued pursuant to $$32.72,32.73 and 32.74 of this chapter to nonprofit 9ducatenal institutions whose processing or manufactunng is exempt under $ 171.11(a)(1). This category also includes t..* p% men and use of source matenal for shielding authorized pursuant to Part 40 of this chapter when included on the same license 4,400 E. Licenses for possesson and use of byproduct matenal in sealed sources for irradiation of matenals in whch the source is not removed from its shield (self-shielded units) _. _.

3.200 F. Licenses for possession and use of less than 10,000 cunes of byproduct matenal in sealed sources for irradiaton of ma-l tenals in which the source is exposed for irradiation purposes. This category also includes underwater irradiators for irra-l diation of rnatenals in which the source is not exposed for irradiation purposes -

3.800 l

G. Licenses for possession and use of 10,000 cunes or more of byproduct matenalin sealed sources for irradiation of ma-tonals in which the source is exposed for irradiation purposes. This category also includes underwater irradiators for irra-diation of matenals in whch the source is not exposed for irradiation purposes.

19,700 H. Licenses issued pursuant to Subpart A of Part 32 of this chapter to distnbute items containing byproduct material that require device review to persons exempt from the Icensing requirements of Part 30 of this chapter, except specife li-censes authonzing redistnbution of items that have been authonzed for distnbution to persons exempt from the Icensing requirements of Part 30 of this chapter S,000

1. Licenses issued pursuant to Subpart A of Part 32 of this chapter to distnbute stems containing byproduct matenal or quantites of byproduct matenal that do not require devce evaluaton to persons exempt from the kcensing requirements of Part 30 of this chapter, except for specifc licenses authonzing redistnbuten of items that have been authonzed for dis-tnbuten to persons exempt from the hcensing requirements of Part 30 of this chapter -

8,900 l

J. Licenses issued pursuant to Subpart B of Part 32 of this chapter to distnbute items containing byproduct matenal that re-Quere sealed source and/or device review to persons generally bcensed under Part 31 of this chapter, except specific h-conses authonzing redistnbuten of items that have been authonzed for distnbution to persons generally hcensed under Part 31 of this chapter 3,800 K. Licenses issued pursuant to Subpart B of Part 31 of this chapter to distribute items contai.ung byproduct matenal or quantities of byproduct matenal that do not require sealed source and/or devce review to persons generally hcensed l

under Part 31 of this chapter, except specife Icenses authonzing redistribution of items that have been authonzed for i

destnbution to persons generally Icensed under Part 31 of this chapter.

3,200 L. Licenses of broad scope for possession and use of byproduct rnatenalissued pursuant to Parts 30 and 33 of this chap-ter for research and development that do not authorize commercial distnbuton -

12,300 M. Other Icenses for possession and use of byproduct matenal issued pursuant to Part 30 of this chapter for research and l

development that do not authonze commercial distnbuton 5,500 l

N. Licenses that authonze servces for other hcensees, except:

(1) Licenses that authonze only calibration and/or leak testing servces are subject to the fees specified in fee Category 3P; and (2) Licenses that authonze waste disposal services are subject to 'he fees specified in fee Categones 4A,48, and 4C 6,100 O. Licenses for possesson and use of byproduct matenal issued pursuant to Part 34 of this chapter for industrial radiogra-phy operatons. This category also includes the possession and use of source matenal for shielding authorized pursuant to Part 40 of this chapter when authonzed on the same Iconse 14,000 P. All other specific byproduct material heenses, except those in Categones 4A through 90 1,700

4. Waste disposal and processing:

A. Licenses specifically authonzing the receipt of waste byproduct material, source matenal, or special nuclear material from other persons for the purpose of contingency storage or commercial land disposal by the Icensee; or licenses au-thonzing contingency storage of low-level radoactue waste at the site of nucint power reactors; or hcenses for receipt of waste from other persons for inciner'ation or other treatment, packaging of re,sulting waste and residues, and transfer l

of packages to another person authorized to receive or dispose of waste matenaf 8102.000 B. Licenses specifically authonzing the receipt of waste byproduct matenal, source matenal, or special nuclear matenal from other persons for the purpose of packaging or repackaging the material The hcensee will dispose of the matenal by transfer to another person authonzed to receive or dispose of the matenal 14,500 C. Licenses specifically authonzing the receipt of prepackaged waste byproduct matenal, source matenal, or special nu-clear matenal from other persons. The hcensee will dispose of the matenal by transfer to another person authorized to receive or dispose of the matenal 7.700

5. Well logging:

A. Lcenses for possession and use of byproduct matenal, source matenal, and/or special nuclear matenal for well logging, well surveys, and tracer studies other than field flooding tracer studies 8,200 B. Licenses for possesson and use of byproduct matenal for field flooding tracer studies f 3,200

a 31860 Feder:1 Register /Vol. 63, No. til/ Wednesday, June 10,1998/ Rules and Regulations SCHEDULE OF MATERIALS ANNUAL FEES AND FEES FOR GOVERNMENT AGENCIE

[See footnotes at end of table)

Annual Category of matenals hcenses p,3 m

6. Nuclearlaundnes:

A. Licenses for commercial collection and laundry of stems contaminated with byproduct matenal, source matenal, or spe-cial nuclear material :

14,700 7, Medical heenses:

A. Licenses issued pursuant to Farts 30,35,40, and 70 of this chapter for human use of byproduct material, source mate-nal, or special nuclear matenal in sealed sources contained in teletherapy devices. This category also includes the pos-session and use of source matenal for shielding when authorized on the same scense 10,300 B. Licenses of broad scope issued to medical institutions or two or more physcians pursuant to Parts 30,33,35,40,and 70 of this chapter authorizing research and developmen*, including human use of byproduct matenal except hcenses for byproduct matenal, source matenal, or special nuclear matenal in sealed sources contained in teletherapy devices. This category also includes the possesson and use of source matenal for shielding when authonzed on the same hcense.e.

23,500 C. Other heenses issued pursuant to Parts 30,35,40, and 70 of this chapter for human use of byproduct matenal, source matenal, and/or special nuclear matenal except hcenses for byproduct matenal, source matenal, or special nuclear mate-na! in sealed sources contained en teletherapy devices. This category also includes the possesson and use of source matenal for shielding when authorized on the same icense.e.

4,700

8. Civil defense:

A. Lcenses for possession and use of byproduct material, source matenal, or special nuclear matenal for crvil defense ac-tivities.

1,800

9. Devee, product, or sealed source safety evaluaton:

A. Registrations issued for the safety evaluation of devces or products containing byproduct material, source matenal, or special nuclear matenal, except reactor fuel devces, for commercial distnbuten 7,200 B. Registrations issued for the safety evaluaten of devices or products containing byproduct material, source material, or special nuclear matenal manufactured in accordance with the unique specifications of, and for use by, a single apphcant, except reactor fuel devices 3,700 C. Registratens issued for the safety evaluaton of sealed tources containing byproduct matenal, source matenal, or spe-cial nuclear matenal, except reactor fuel, for commercial distribution,

1.600 D. Registrations issued for the safety evaluation of sealed sources containing byproduct matenal, source matenal, or spe-cial nuclear material, manufactured in accordance with the unique spectfacations of, and for use by, a single applicant, except reactor fuel

.~

780

10. Transportaten of radioactive matenal:

A. Certificates of Compliance or other package approvals assocd ior design of casks, packages, and shipping containers.

Spent Fuel, High-Level Waste, and plutonium air pacQges eN/A Other Casks.

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

Users and Fabncators 78,800 Users 1,000

11. Standardized spent fuel facshties.

eN/A

12. Special Projects -

'N/A

13. A. Spent fuel storage cask Certifcate of Compliance eN/A B. General heenses for storage of spent fuel under 10 CFR 72.210 283,000

14. Byproduct, source, or special nuclear matenal heenses and other approvals authonzing decommissiorung, decontamination, reclamaton, or site restoration actnnties pursuant to 10 CFR Parts 30,40,70, and 72 -

7 N/A

15. Import and Export Icenses aN/A

16. Reciprocity eN/A 17, Master matenals iconses of broadscope assued to Government agenciem 421,000

18. Department of Energy:

1o51,168,000 A. Certificates of Comphance.

t B. Uranium Mill Taihng Radiation Control Act (UMTRCA) activities 1,964,000 8 Annual fees will be. assessed based on whether a licensee held a vahd ! cense with the NRC authorizing possession and use of radioactive matenal dunng the fiscal year. However, the annual fee is waived for those matenals hcensees and holders of certificates, registrations, and ap-provats who orther filed for terminaten of their Icenses or approvals or filed-for possesson onty/ storage hconses pnor to October 1,1997, and permanently ceased iconsed activities entirely by September 30,1997, Annual fees for heensees who filed for termination of a hcense, down-grade of a icense, or for a POL dunng the fiscal year and for new Icenses issued dunng the fiscal year will be prorated in actrirdance with the provisens of g 171.17. If a person holds more than one Icense, certifcate, registration, or approval, the annual fee (s) will be assessed for each bconse, certitcate, registration, or approval held by that person. For iconses that authonte more than one actrvity on a single Icense (e.g.,

human use and irradiator activities), annual fees wdl be assessed for each category appicable to the Icense. 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 authonzed in the hcense.

2 Payment of the prescribed annual fee does not automaticatty renew the hcense, certifcate, registration, or approval for which the fee is paid.

Renewal applications must be filed in accordance with the requirements of Parts 30,40,70,71, or. 72 of this chapter.

8 Each fiscal year, fees for these matenals hcenses 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 Icense includes mill heenses issued for the extraction of uranium from uranium ore. A Class ll hcense incluoes solution mining h.

Conses (in-situ and heap leach) issued for the extraction of uranium from uranium oret including research and development hcenses. An "other" hcense includes Icenses for extracton of metals, heavy metals, and rare earths.

8 Two heenses were issued by NRC for land disposal of special nuclear matenal. Once NRC issues an LLW disposal heense for byproduct and source matenal, the Commisson will consider establishing an annual fee for this type of hcense.

• Standardized spent fuel facihties,10 CFR Parts 71 and 72 Certificates of Compisance, and special reviews, such as topical reports, are not i

tssessed an annual fee because the genere costs of regulating these activities are pnmarily attnbutable to the users of the designs, certificates, tnd topical reports.

7Lcensees in this category are not assessed an annual fee because they are charged an annual fee in other categones while they are li-censed to operate.

8 No annual fee is charged because it is not practcal to administer due to the relatively short hfe or temporary nature of the hcense.

Federal Register /Vol. 63, No.111/ Wednesday, June 10.1998 / Rules and Regulations 31861

'SIparata annual tass will not t>a assssssd for pacemaker hcensss issued to medica: er.stitut,cr.s who also hold nuclear medicine licenses

=

under Categones 78 or 7C.

'0This includes Certificates of Compliance issued to DOE that are not under the Nuctepr Waste Fund.

(e) The activities comprising the FY fee on the anniversary date of the agencies endeavor to fit regulatory and 1995 surcharge are as follows:

license. Payment is due on the invoice infonnational requirements, consistent with (1) LLW disposal generic activities; date and interest accrues from the date applicable statutes, to a scale commensurate (2) Activities not attributable to an of the invoice. However, interest will be with the businesses. organizations, and existing NRC licensee or classes of waived if payment is received within 30 8"**'"* *"* I"'I'd II "'. t which they licensees; e.g., international cooperative days from the invoice date.

req re hat g ncies co the mp ct of safety program and international (c) Annual fees in the amount of their actions on small entities. If the agency safeguards activities; support for the

$100 000 or more and described in the cannot certify that a rule will not Agreement State program; site Federal Register notice pursuant to significantly impact a substantial number of decommissioning management plan S 171.13 must be paid in quarterly small entities, then a regulatory flexibility (SDMP) activities; and installments of 25 percent as billed by analysis is required to examine the impacts (3) Activities not currently as sessed the NRC. The quarters begin on October n sma,ll entities and the alternatives to dde$s$g these impacts licensing and inspection fees under 10 1, January 1. April 1, and July 1 of each T

n CFR Part 170 based on existing law or fiscal year.

under the Regulatory Flexibility Act (RFA).

Commission policy, e.g., reviews and (d) Annual fees ofless than $100,000 first the NRC adopted size standards for inspections conducted of nonprofit must be paid as billed by the NRC. As determining which NRC licensees qualify as educational institutions and Federal established in FY 1996, materials small entities (50 FR 50241; December 9, agencies; activities related to license annual fees that are less than 1985). These size standards were clarified on decommissioning and reclamation and

$100,000 are billed on the anniversary November 6,1991 (56 FR 56672). On April costs that would not be collected from date of the license. The materials 7,1994 (59 FR 16513), the Small Business small entities based on Commission licensees that are billed on the Administration (SBA) issued a final rule policy in accordance with the anniversary date of the license are those hus e"d ts Ic i t eSBjg ai'

' "dards b.

Regulatory Flexibility Act.

covered by fee categories 1.C. and LD.;

levels to mitigate the effects ofinflation from 2.A.(2) through 2.C.; 3.A. through 3.P.;

1984 to 1994. On November 30,1994 (59 FR

14. Section 171.19 is revised to read 4.B. through 9.D.; and 10.B. For annual 61293), the NRC published a proposed rule as follows:

fee purposes, the anniversary date of the to amend its size standards. After evaluating license is considered to be the first day the two comments received, a final rule that

$ 171.19 Payment.

of the month in which the original would revise the NRC's size standards as (a) Method of payment. Annual fee license was issued by the NRC.

fhNBA obar 41995 The payments, made payable to the U.S.

Beginning June 11,1996, the effective published the final rule revising its size Nuclear Regulatory Commission, are to date of the FY 1990 final rule, licensees standards on April 11.1995 (60 FR 18344).

be made in U.S. funds by check, draft, that are billed on the license The revised standards became effective May money order, credit card, or electronic anniversary date will be assessed the 11.1995. The revised standards adjusted the funds transfer such as ACH (Automated annual foe in effect on the anniversary NRC receipts-based size standards from $3.5 Clearing House) using EDI (Electronic date of the license. Materials licenses million to 55 million to accommodate Data Interchange). Federal agencies may subject to the annual fee that are inflation and to conform to the SBA final also make payment by the On-line terminated during the fiscal year but rule $NRC also el i sted the separ te Payment and Collection System prior to the anniversary month of the (OPAC's). Where specific payment license will be billed upon termination physicians and apfion to this c$as. based size lied a recel ts standard of $5 mil s of instructions are provided on the for the fee in effect at the time of the licensees. This mirrored the revised SBA invoices to applicants and licensees, billing. New materials licenses subject standard of $5 million for medical payment should be made accordingly, to the annual fee will be billed in the practitioners. The NRC also established a size e.g. invoices of $5,000 or more should month the license is issued or in the standard of 500 or fewer employees for be paid via ACH through NRC's next available monthly billing for the business concerns that are manufacturing Imckbox Bank at the address indicated fee in effect on the anniversary date of

'"tijigThi tandard i e most only on the invoice. Credit card payments the license. Thereafter, annual fees for standard applicable to the types of should be made up to the limit new licenses will be assessed in the manufacturing industries that hold an NRC established by the credit card bank, in anniversary month of the license.

license.

accordance with specific instructions Dated at Rockville, Maryland, this 22nd The NRC used the revised standards in the pmvided witn the invoices, to the day of May,1998.

final FY 1995 FY 1996, and FY 1997 fee l

Lockbox Bank designated for credit card For the Nuclear Regulatory Commission, rules and is continuing their use in this FY 1998 final rule. The small entity fee l

l payments.

lesse L Funches, categories in 6171.16(cl of this final rule (b) For FY 1098, the Commission will ChiefFinancialOfficer.

reflect the changes in the NRC's size ad}ust the fourth quarterly invoice for standards adopted in FY 1995. A new operating power reactors and certain Note:The followin ap endix will not maximum small entity fee for manufacturing materials licensees to recover the full appear in the Code o eral Regulations.

indJstries with 35 to 500 employees was l

amount of the revised annual fee. If the Appendix A to This Final Rule---Regulatory established at $1.800 and a lower-tier small amounts collected in the first three Flexibility Analysis for the Amendments to entity fee of $400 was established for those quarters exceed the amount of the 10 CFR Part 170 (License Feesl and to CFR manufacturing industries with less than 35 revised annual fee, the overpayment Part 171 (Annual Fees) employees. The lower-tier receipts-based will be refunced. All other licensees, or I. Back round B

to reflect approximately the same percentage holders of a certificate, registration, or The Regulatory Flexibility Act of 1980, as adjustment as that made by the SBA when approval of a QA program will be sent amended. (5 U.S C. bot er seg ) establishes as they adjusted the receipts-based standard a bill for the full amount of the annual a principle of regulatory practice that from 53.5 million to 55 miluon. The NRC l

1 m___ _ ______________. _ _ _ _ _ _. __

31862 Federal Register /VOL 63. No.111/ Wednesday, June 10,1998 / Rules and Regulations to get rid of the materials license believes that contmuing these actions for FY governmental jurisdictm The second is to altogether. Commenters stated that the 1998 will reduce the impact of annual fees provide the Congress witt the opportunity to on small businesses. The NRC size standards review agency rules befon th-go into effect proposed rule would result in about 10 are codified at to CFR 2.810 Under this legislation, the NRC fee rule, percent of the well-logging licensees Public Law 101-508 the Ommbus Budget published annually, is considered a " major" terminating their licenses immediately and Reconciliation Act of 1990 (OBRA-90),

rule and therefore must be reviewed by approximately 25 percent terminating their required that the NRC recover approximately Congress and the Comptroller General before licenses before the next annual assessment.

100 percent of its budget authority, less the rule becomes effective. Section 312 of the -Some companies would go out of business.

appropriations from the Nuclear Waste Fund, Act provides that for each rule for which an One commenter noted that the proposal for Fiscal Years (FY) 1991 through 1995 by agency prepared a final regulatory flexibility would put it, and several other small

. assessing license and annual fees. OBRA-90 analysis, the agency shall prepare a guide to companies, out of business or, at the very was amended in 1993 to extend the 100 assist small entities in complying with the least, make it hard to survive.

percent recovery requirement for NRC rule. The NRC's guide is Attachment 1 to

-Some companies would have budget through 1998. For FY 1991, the amount for Appendix A of this final rule. A regulatory problems. Many medical licensees collection was about $445.3 million; for FY flexibility analysis is prepared for the commented that,in these times of slashed 1992, about 5492.5 million: for FY 1993 proposed and final NRC fee rules as reimbursements, the proposed increase of about 3518.9 million; for FY 1994 about $513 implemented by 10 CFR Part 170 and 171 of the existing fees and the introduction of million: for FY 1995 about 5503.6 million; for the Commission's regulations. Therefore, in additional fees would significantly affect FY 1996 about 5462.3 million; for FY 1997 compliance with the law Attachment 1 to their budgets. Another noted that,in view about $462.3 million; and the amount to be this Regulatory Flexibility Analysis is the of the cuts by Medicare and other third collected for FY 1998 is approximately small entity compliance guide for FY 1998.

party carriers, the fees would produce a hardship and some facilities would 54.8 mWion, IL Impact on Small Entities experience a great deal of difficulty in To comply w th OBRA-90, the The comments received on the proposed meeting this additional burden.

i Commission amended its fee regulations in FY 1991-1997 fee rule revisions and the Since FY 1991 when annual fees were first 10 CFR Parts 170 and 171 in FY 1991 (56 FR small entity certifications received in established, approximately 3,000 license.

31472; July 10,1991), in FY 1992 (57 FR response to the final FY 1991-1997 fee rules approval, and registration terminations have 32691; July 23,1992),in FY 1993 (58 FR indicate that NRC licensees qualifying as been requested. Although some of these 38666; July 20,1993), in FY 1994 (59 FR small entities under the NitC's size standards terminations were requested because the 36895; July 20,1994), in FY 1995 (60 FR are primarily those licensed under the NRC's license was no longer needed or licenses or 32218; June 20,1995), in FY 1996 (61 FR materials pmgram. Therefore, this analysis registrations could be combmed, indications 16203; April 12,19%). and in FY 1997 (62 will focus on the economic impact of the are that other termination requests were due FR 29194; May 29,1997) based on a careful annual fees on materials licensees.

to the economic impact of the fees.

evaluation of over 1,000 comments. These The Commission's fee regulations result in The NRC continues to receive written and final rules established the methodology used substantial fees being charged to those oral comments from small materials by NRC in identifying and determining the individuals, organizations, and companies licensees. These commenters previously fees assessed and collected in FYs 1991-that are licensed under the NRC materials indicated that the $3.5 million threshold for 1997.

The NRC indicated in the FY 1995 final pmgram. Of these materials licensees, about busm, l entities was not representative of smaI 20 percent (approximately 1,400 licensees) esses with gmss receipts in the rule that it would attempt to stabilize annual have requested small entity certification in thousands of dollars. These commenters fees as follows. Beginning in FY 1996, it the past. In FY 1993, the NRC conducted a believe that the 51,800 maximum annual fee would a ljust the annual fees only by the survey of its materials licensees. The results represents a relatively high percentage of percentage change (plus or minus) in NRC's of this survey indicated that about 25 percent gm annual receipts for these " Mom and total budget authority unless there was a of these licensees could quahfy as small Pop" type businesses. Therefore, even the substantial change in the total NRC budget entities under the current NRC size authority or the magnitude of the budget reduced annual fee could have a significant standards.

impact on the ability of these types of allocated to a specific class of licensees, in The commenters on the FY 1991-1994 which case the annual fee base would be businesses to continue to operate.

recalculated (60 FR 32225; June 20,1995).

Proposed fee rules indicated the following To alleviate the continuing significant The NRC also indicated that the percentage results if the proposed ancual fees were not impact of the annual fees on a substantial modified:

change would be adjusted based on changes number of small entities, the NRC considered in the 10 CFR Part 170 fees and other

-Large firms would gain an unfair alternatives,in accordance with the RFA.

adjustments as well as an adjustment for the competitive advantage over small entities.

These alternatives were evaluated in the number oflicensees paying the fees. As a One commenter noted that a small well.

i 4 wingrules:FY 1991 (56 FR 31472; July result, the NRC is establishing the FY 1998 logging company fa Mom r.nd Po " type 10,1991). FY 1992 (57 FR 32691; July 23, annual fees for all licensees at about 0.1 of operation) would find it difficu to 1992), FY 1993 (58 FR 38666; July 20,1993),

percent below the FY 1997 exact (prior to absorb the annual fee, while a large FY 1994 (59 FR 36895; July 20,1994), FY rounding) annual fees. Based on this small corporation would find it easier. Another 1995 (60 FR 32218; June 20,1995), FY 1996 change, the FY 1998 annual fees (rounded) commenter noted that the fee increase (61 FR 16203; April 12,19%), and FY 1997 for many fee categories are the same as the could be more easily absorbed by a high-(62 FR 29% May 29,1997L The FY 1997 annual fees. Ifecause there has not volume nuclear medicine clinic. A gauge alternatives considered by the NRC can be been a substantial change in the NRC budget licensee noted that,in the very competitive summarized as follows.

or in the magnitude of a specific budget soils testing market, the annual fees would ~ Base fees ou some measure of the amount allocation to a class of licensees, the NRC has put it at an extreme disadvantage with its continued to stabilize annual fees by much larger competitors tmcause the of radioactivity possessed by the licensee (e.g4 number of sources).

following the same method used for FY 19%

proposed fees would be the same for a two. -Base fees on the frequency of use of the and FY 1997 to establish the FY 1998 annual person licensee as for a large firm with licensed radioactive material (e.g., volume fees.

thousands of employees.

Public Law 104-121, the Contract with

-Some firms would be forced to cancel their of Patients).

-Base fees on the NRC size standards for America Advancement Act of1996.was licenses. One commenter, with receipts of small entities.

signed into law on March 29,1996. Title III less than $500.000 per year, stated that the of the law is entitled the Small Business proposed rule would, in effect, force it to The NRC has reexamined the FY 1991-Regulatory Enforcement Fairness Act of 1996 relinquish its soil density gauge and 1997 evaluations of these alternatives. Based (SBREFAl. The SBREFA has two purposes.

license, thereby reducing its ability to do on that reexamination, the NRC continues to The first is to reduce regulatory burdens its work effectively. Another commenter believe that establishment of a maximum fee imposed by Federal agencies on small noted that the rule would force the for small entities is the most appropriate businesses, nonprofit organizations and company and many other small businesses option to reduce the impact on small entities.

Federcl Register /Vol. 63, No, n1/ Wednesday. June 10.1998 / Rules and Regulations 31863

,. The NRC established, and will continue for substantial number of small entities. A annual fees assessed under 10 CFR Part 151.

FY 1998, a maximum annual fee for small maximum fee for small entities strikes a The NRC, in compfiance with the Regulanry j

~

entities. The RFA and its implementing balance between the requirement to collect Flexibihty Act of 1980 (KFAl. has estabbshed guidance do not provide specific guidelines 100 percent of the NRC budget and the separate annual fees for those materials on what constitutes a sigmficant economic requirement to confidct means of reducing licensees who meet the NRC's size standards impact on a small entity. Therefore the NRC the impact of the fee on small entities. On the for small entities These size standards, has no benchmark to assist it in determining basis of its regulatory flexibility analyses, the developed in consultation with the the amount or the percent of gross receipts NRC concludes that a maximum annual fee that should be charged to a small entity, For of 31.800 for small entities and a lower-tier Businest Administration, were revised by the FY 1998, the NRC will rely on the analysis small entity annual fee of $400 for small NRC and became effective on May 11,1995.

previously completed that established a businesses and not-for profit organizations The small entity size standards are found at maximum annual fee for a small entity and with gross annual receipts of less than 10 CFR 2.810 of the NRC's regulations. To the amount of costs that must be recovered

$350.000, small governmental junsdictions l

comp y with the RFA, the NRC has from other NRC licensees as a result of with a populatior, ofless than 20.000, small established two tiers of small entity fees.

establishing the maximum annual fees.

manufacturing e dties that have less than 35 These fees am found at to CFR 171.16(c) of The NRC continues to believe that the to employees and educational institutions that the NRC's fee regulations.

CFR Part 170 license fees (application and are not State or publicly supported and have Licensees who meet NRC's size standards amendment), or any adjustments to these less than 35 employees reduces the impact for a small entity must complete NRC Form licensing fees during the past year do not on small entities. At the same time, these 526 in order to qualify for the reduced annual have a significant impact on small entities. In reduced annual fees are consistent with the fee. NRC Form 526 will accompany each issuing this final rule for FY 1998, the NRC objectives of OBRA-90. Thus, the fees for annual fee invoice mailed to materials concludes that the 10 CFR Part 170 materials small entitles maintain a balance between the licensees. The completed form, along with license fees do not have a significant impact objectives of OBRA-90 and the RFA.

the appropriate small entity fee and the on a substantial number of small entities and Therefore, the analysis and conclusion payment copy of the invoice, should be that the 10 CFR Part 171 maximum annual established in the FY 1991-1997 rule, mailed to the U.S. Nuclear Regulatory small entity fee of 51,800 be continued.

remain valid for this final rule for FY ' 38.

Commission, License Fee and Accounts By maintaining the maximum annual fee for small entities at $1.800, the annual fee for in compliance with Public Law 104-124. 4 Receivable Branch, to the address indicated many small entities is reduced while at the small entity compliance guide has been on the invoice.

prepared by NRC and is shown as same time materials licensees, including small entities, pay for most of the FY 1998 to this Regulatory Flexibility NRC Definition of Small Entity costs attributable to them. The costs not Analysis.

The NRC. in consultation with the Small recovered from small entities are allocated to Attachment 1 to Appendix A Business Administration, has defined a small other materials licensees and to operating entity for purposes of compliance with its U. S. N uclear Regadatory Commission, Small regulations. The definition is codified in (utbere er d fro t er i ensee as a Entity Compliance Guide, Fiscal Year 1998 NRC's regulations at to CFR 2.810. Under the result of maintaining the maximum annual Contents NRC regulation, a small entity is a:

fee is not expected to increase significantly.

Introduction

- mau en-a Pm h cnneat Therefore, the NRC is continuing. for FY 1998, the maximum annual fee (base annual NRC Definition of Small EntiIY Provides a service or a concem iot engaged En in manufacturing with everage gross receipts fee plus surcha 1 for certain small entities c7g

, fct om eting FRC Form 526 fiscal years." "

at $1.800 for eac fee category covered by each license issued to a small entity.

Introduction

2. Manufacturing industry-e While reducing the impact on many small entities, the Commission agmes that the The Small Business Regulatory manufacturing concern with an average maximum annual fee of $1.800 for small Enforcement Fairness Act of1996 (SBREFA) nwnbu of 500 m fewer employees based entities, when added to the Part 170 license requires all Federal agencies to repare a upon ernployment durin8 each pay period for fees, may continue to have a significant written guide for each "maior" nal rule as the pmceding 12 calendar months; impact on materials licensees with annual defined by the Act. The NRC's fee rule,

3. Small organization-a not for-profit gross receipts in the thousands of dollars.

published annually to comply with the organization which is independently owned Therefore, as in FY 1992-1997, the NRC is Omnibus Budget Reconciliation Act of1990 and operated and has annual gmss receipts (OBRA-90) which requires the NRC to collect of $5 million or less; fee f 54 rs 11 itie ith It ely approximately 100 percent of its budget

4. Small governmental jurisdiction-a low ss annual receipts The 1 er tier authority each year through fees, meets the governmeni of a city, county, town, thresitolds for being considered a " major" township, village, school district or special nu g conc s and educat onal rule under ths SBREFA. Therefore, in district with a population of less than 50,000; institutions not State or publicly supported, complienes with the law, *his small entity

5. Srnall educational institution-an with less than 35 em loyees. This lower-tier compliance guide has been prepared for FY educational institution supported by a small entity fee was krst established in the 1998. The purpose of this guide is to assist qualifying small governme.atal jurisdiction, final rule published in the Federal Register small entities in complying with the NRC fee or one that is not state or publicly supported on April 17,1992 (57 FR 13625) and now rule.

and has 500 or fewer employees.8 includes manufacturing companies with a This guide it, designed to aid NRC relatively small number of employees.

materials licensees. The information NRC Small Entity Fees provided in this guide may be used by The NRC has established two tiers of small.

IIL Summary licensees to determine whether they qualify entity fees for licensees that qualify under the The NRC has determined that the to CFR as a small entity under NRC regulations and NRC's size standards. Currently, these fees Part 171 annual fees significantly impact a are therefore eligible to pay reduced I'Y 1998 are as follows:

' An educational Institution referred to in the nationally recognized accrediting agency or provides an educ.tional program for which it size standards is an entity whose primary function association, who is legally authorized to provide a awards academic degrees, and whose educational la education, whona programs are accredited by a program of organized instruction or study, who programs are available to the public.

31864 Fedml R:gister/ Vol. 63. No.111/ Wednesday. June 10,1998/Rttles and Regulations

-,. ~

hmurrt annual fee per licensed category Small Business Not Engaged in Manufacturing and Small Not-For Proht Organizations (Gross Annual Receipts):

51,800

$350.000 to $5 million >

Less than $350,000 400 Manufactunng entities that have an aveTe of 500 employees or less:

1.800 35 to 500 employees.

Less than 35 employees...

400 Small Govemmental Junsdictions (including publicly supported educational institutions) (Population):

1,800 20,000 to 50.000

..m.

Less than 20,000 _.

400 Educational institutions that are not State or Publicly Supported, and have 500 Employees or Less:

1.800 35 to 500 employees -

400 Less than 35 employees To pay a reduced annual fee, a licensee whatever form received or accrued from amount shown on the invoice but rather one-must use NRC Form 52ti, enclosed with the w hatever sources, not solely receipts from half of the maximum annual fee shown on fee invoice. to certify that it meets NRC's size licensed activities. There are limited NRC ForTn 526 for the size standard under standards for a smal'1 entity. About 1.400 exceptions as set forth at 13 CFR 121.104.

which the licensee qualife, resultir.g in a licensees certify each year that they qualify These are: the term receipts excludes net fee of either 5900 or $260 for caNee as a small entity under the NRC size capital gains or loanesaaf,es collected for and coegory billed instead of the full small entity standards and pay a reduced annual fee.

remitted to a taxing spthority Liincluded in annual fee of $1.800 or $400.

Approximately 800 licensees pay the small gross or total income, proceeds from the

4. A new small entity form (NRC Form 526) entity fee of 1.800 while 600 licensees pay transactions between a concern and its is re uired to be filed with the NRC each the lower-tier, small-entity fee of 400.

domestic or foreign affiliates (if also excluded fisc year in order to qualify for re6uced fees fm m gross r t tal income on a consolidated for that fiscal year. Because a licensee's Instructions for Completing NRC Form 526 return filed with the IRS 1, and amounts

.. size," or the size standards, may change

1. File a separate NRC Form 526 for each collected for another by a travel agent, real from yent to year, the invoice refiscts the full annual fee invoice received.

estate agent, advertising agent, or conference fee and a new Form must be completed and

2. Complete all items on NRC Form 526 as management service provider.

returned for the fee to be reduced to the small follows:

(3) A licensee who is a subsidiary of a large entity fee. LICENSEES WILL NOT BE

a. The license number and invoice number entity does not qualify as a small entity.

ISSUED A NEW INVOICE FOR THE must be entered exactly as they appear on the (4) The owner of the entity, or an official REDUCED AMOUNT.The. comp eted NRC l

annual fen mvoice.

empowered to act on behalf of the entity.

Form 526, the payment of the appropriate

b. The Standord Industrial Classification must si n and date the small entity 6

small entity fee, and the " Payment Copy " of (SIC) Code should be entered if it is known.

certification, c The licensee's name and address must be

3. The NRC sends invoices to its licensees the invoice should be mailed to the U. S.

entered as they appear on the invoice. Name for the full annual fee, even though some Nuclear Regulatory Commission,l.icense Fee and Accounts Receivable Branch at the and/or address changes for billing purposes entities qualify for reduced fees as a small address indicated on the invoice.

must be annotated on the invoice. Correcting entity.1.icensees who qualify as a small the name and/or address on NRC Form 526 entity and file NRC Form 526, which certifies

5. Questions regarding fee invoices may be l.

or on the invoice does not constitute a eligibility for small entity fees, may pay the posed orally or in writing. Please call the request to amend the license. Any request to reduced fee, which for a full year is either license fee staff at 301-415-7554 or write to l

amend a license is to be submitted to the

$1.800 or 5400 depending on the size of the the U.S. Nuclear Regulatory Cr nission.

+

'f respective licensing staffs in the NRC entity, for each fee category shown on the Washington, DC 20555, AP Regional or Headquarters Offices.

invoice. Licensees granted a license during the Chief Financial Offic6

d. Check the appropriate size standard the first six months of the fiscal year and

6. False certification of 5 ovM y s.

as under which the licensee qualifies as a small licensees who file for termination or for a could result in civil sancf. u bww a

.,d entity. Check one box only. Note the possession only license and permanently by the NRC pursuant to the. Orc a 4 Fraud following:

cease licensed activities during the first six Civil Remedies Act,31 U.S.C. a801 et. seg.

(1)The size standards apply to the months of the fiscal year pay only 50 percent NRC's implementing regulations are found at licensee, not the individual authorized users of the annual fee for that yr ar. Such an to CFR Part 13.

listed in the license.

invoice states the " Amount Billed Represents (2) Gross annual receipts as used in the 50% Proration." This means the amount due (FR Doc. 98-15140 Filed 6-9-98; 8:45 am]

size standards includes all revenue in from a small entity is not the prorated auseo coos 7aem e

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