ML20236W669
| ML20236W669 | |
| Person / Time | |
|---|---|
| Issue date: | 03/19/1998 |
| From: | Halman E NRC OFFICE OF ADMINISTRATION (ADM) |
| To: | Funches J NRC OFFICE OF THE CONTROLLER |
| Shared Package | |
| ML20014B037 | List:
|
| References | |
| FRN-63FR16046, RULE-PR-140, RULE-PR-170, RULE-PR-171, RULE-PR-2 AF83-1-011, AF83-1-11, NUDOCS 9808060141 | |
| Download: ML20236W669 (39) | |
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l" y'"*% t ,yg3 1 j2Df l p UNITED STATES l g j f
NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20666 4001 e
i
( k.....,/ l March 19, 1998 MEMORANDUM TO: Jesse L Funches Chief Financial Officer FROM: Edward L. Halman, Di r Office of Administr
SUBJECT:
OFFICE CONCURRENCE ON PROPOSED RULE PACKAGE ENTITLED, " REVISION OF FEE SCHEDULES; 100% FEE RECOVERY, FY 1998" .
The Office of Administration concurs on the proposed rule that would amend Parts 2,140,170, i and 171. We have attached a copy of the package that presents our comments. l When this document is forwarded for publication, please include a 3.5 inch diskette that contains a copy of the document in Wordperfect as part of the transmittal package. The diskette will be '
forwarded to the OFR and the Government Printing Office for their use in typesetting the document.
I In order to assist you in preparing the list of documents centrally relevant to this final rule that is required by NRC's regulatory history procedures, you should place the designator"AF83-1"in the upper right-hand comer of each document conceming the final rule that you forward to the Nuclear Documents System.
If you have any questions, please contact Alice Katoski,415-6862, or David Meyer, Chief, Rules and Directives Branch,415-7162.
Attachment:
As stated l
t 9808060141 980728 PDR PR
- u. D 0046, PDR , o#:
[7590-01-P]
NUCLEAR REGULATORY COMMISSION 10 CFR Parts 2,140,170 and 171 RIN: 3150-AF 83 l
Revision of Fee Schedules; 100% Fee Recovery, FY 1998 !
l i
AGENCY: Nuclear Regulatory Commission.
ACTION: Proposed rule, i
SUMMARY
- The Nuclear Regulatory Commission (NRC) is proposing to amend the licensing, i inspection, and annual fees charged to its applicants and licensees. The proposed amendments are necessary to implement the Omnibus Budget Reconciliation Act of 1990 (OBRA-90), which mandates that the NRC recover approximately 100 percent of its budget I authority in Fiscal Year (FY) 1998, less amounts appropriated from the Nuclear Waste Fund (NWF). The amount to be recovered for FY 1948 is approximately $454.8 million. The NRC is also proposing to provide additional payment methods for civil penalties and indemnity fees.
- DAT?.?
- The comment period expires (30 days after publication). Comments received after l this date will be considered if it is practical to do so, but the NRC is able to ensure only that comments rewived on or before this date will be considered. Because OBRA-90 requires that NRC collect the FY 1998 fees by September 30,1998, requests for extensions of the comment period will not be granted.
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1 ADDRESSES: Mail written comments to: Secretary, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001,' ATTN: Rulemakings and Adjudications Staff. Hand deliver
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30 comments to: 11555 Rockville Pike, Rockville, Maryland 20852, between am and 4:15 pm Federalworkdays. (Telephone 301-415-1678). Comments may also be submitted via the l NRC's interactive rulemaking website through the NRC home page (http://www.nrc. gov). From the NRC homepage, select "Rulemaking" from the tool bar. The interactive rulemaking website l can then be accessed by selecting "New Rulemaking Website". This site provides the availability to upload comments at files (any format), if your web browser supports that function.
For information about the interactive rulemaking site, contact Ms. Carol Gallagher, 301-415-l l
5905; e-mail CAG@nrc. gov.
1 i
Copies of comments received and the agency workpapers that support these proposed i
changes to 10 CFR Parts 170 and 171 may be examined at the NRC Public Document Room, l
2120 L Street NW. (Lower Level), Washington, DC 20555-0001. Comments received may also be viewed and downloaded electronically via the interactive rulemaking website established by
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the NRC for th.'s rulemaking.
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i FOR FURTHER INFORMATION CONTACT: Glenda Jackson, Office of the Chief Financial Officer, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, Telephone 301-415-6057. I t
SUPPLEMENTARY INFORMATION:
- 1. Background.
l lI. Proposed Action.
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. til. Section-by-Section Analysis. j IV. Environmental Impact:' Categorical Exclusion.
V. Paperwork Reduction Act Statement.
VI. Regulatory Analysis.
Vll. Regulatory Flexibility Analysis.
Vill. Backfit Analysis.
l
- l. Background l
I l Public Law 101-508, the Omnibus Budget Reconciliation Act of 1990 (OBRA-90),
enacted November 5,1990, requires that the NRC recover approximately 100 percent of its budget authority, less the amount appropriated from the Department of Energy (DOE) l administered NWF, for F s 1991 through 1995 by assessing fees. OBRA-90 was amended in l 1993 to extend the NRC's 100 percent fee recovery requirement through FY 1998.
l l The NRC assesses two types of fees to recover its budget authority. First, license and i d l l inspection fees, established ing10 CFR Part 170 under the authority of the Independent Offices j
- Appropriation Act (IOAA),31 U.S.C. 9701, recover the NRC's costs of providing individually l
L identifiable services to specific applicants and licensees. Examples of the services prc'iided by the NRC for which these fees are assessed are the review of applications for the issuance of I
new licenses, approvals or renewals, and amendments to licenses or approvals. Second, annual fees, established in 10 CFR Part 171 under the authority of OBRA-90, recover generic and other regulatory costs not recovered through 10 CFR Part 170 fees.
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upain &l 4 On April 12,1996 (61 FR 16203), the NRC published its final rule establishing the y p, , g<
licensing, inspection, and annual fees necessary for the NRC to recover approximately 100 W MI role ?
percent of its budget authority for FY 1w96, less the appropriation received from the Nuclear ,
qh f
Waste Fund. Several changes to the fees assessed for FY 1996 were adopted by the NRC.
- @(k)
D9 These changes were highlighted in th final rule [61 FR 16203; April 12, nd bear on the approach for establishing annual fees set forth in this proposed rule.
II. Proposed Action The NRC is proposing to amend its licensing, inspection, and annual fees to recover i
approximately 100 percent of its FY 1990 budget authority, including the budget authority for its Office of tho inspector General, less the appropriations received from the NWF and the General Fund. For FY 1998, the NRC's budget authority is $472.8 million, of which $15.0 million has been appropriated from the NWF. In addition, $3.0 million has been appropriated from the l General Fund for activities related to commercial vitrification of waste stored at the Department of Energy Hanford, Washington site, and for the pilot program for the extemal regulation of the Department of Energy. The FY 1998 appropriation language states that the $3.0 million appropriated for regulatory reviews and other activities pertaining to waste stored at the Hanford, Washington site and activities associated with the pilot program for external regulation of the Department of Energy shall be excluded from license fee revenues notwithstanding 42 U.S.C. 2214. Therefore, NRC is required to collect approximately $454.8 million in FY 1998
- through 10 CFR Part 170 licensing and inspection fees and 10 CFR Part 171 annual fees.
The total amount to be recovered in fees for FY 1998 is $7.5 million less than the t ..
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- l. .
I j in addition, the NRC plans to review other areas for potential cost recovery under Part '
170. Some changes resulting'from the study may be included in the FY 1999 rulemaking.
l The NRC is also proposing to make other changes to 10 CFR Parts 170 and 171 as
{
discussed in Sections A. and B. below:
A. Amendments to 10 CFR Part 170: Fees for Facilities. Materials. Imoort and Exoort Licenses. and Other Reaulatory Services. l l
l The NRC proposes four amendments to 10 CFR Part 170. These amendments would not change the underlying basis for the regulation -- that fees be assessed to applicants, ;
l persons, and licensees for specific identifiable services rendered. The amendments also comply with the guidance in the Conference Committee Report on OBRA-90 that fees assessed under the Independent Offices Appropriation Ac' (IOAA) recover the full cost to the NRC of identifiable regulatory services that each applicant or licensee receives.
l First, the NRC proposes to revise $170.12(g) to include the following for cost recovery:
l l
l (1) Full cost recovery for resident inspectors.
A l
l Currently, resident inspectors' time is billed to the site to which they are assigned only if l
i the time is reported to a specific inspection report number. The remaining costs related j to the resident inspector are recovered in the annual fees assessed to all licensees in the class. Because the assignment of a resident inspector to a site is an identifiable 8
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service to a specific licensee, the NRC is proposing that all of the resident inspectors' official duty time (i.e., excluding leave) be billed to the specific licensee under Part 170.
This change would be applicable to all classes of licensees having resident inspectors.
(2) Costs expended within 30 days after the issuance of an inspection report.
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l Sc< h m I' J10-GFR 170.12 (g) provides that costs will be assessed for completed inspections.
Currently, for fee recovery purposes, an inspection is considered to be completed when the inspection report is issued. The result is that costs expended after the report is sent are recovered through the annual fees imposed on all licensees in that class.
Activities that occur after the inspection report is issued, such as follow-up on the 1
inspection findings, are identifiable services for specific licensees. Therefore, NRC l
proposes to assess Part 170 fees for these services. However, in order to establish a clear interval during which accumulated costs would be billed, the proposed change to Part 170 woisld recover costs from the specific licensee for activities that occur within 30 days after the issuance of the inspection report. This change would result in recovery of 80 percent of these costs under Part 170, and would continue to provide applicants and licensees with a definitive point at which billing would cease.
Second, the NRC proposes to revise 9170.12(h) to include credit cards as an additional method of payment, and to provide additionalinformatioin on electronic payments. Credit card i
L payments would be accepted for small do!!ar payments. Electronic payments may be made by Fedwire (a funds transfer system operated by the Federal Reserve System) or by Automated 9
i f
-Q s i
Clearing House (ACH). ACH is a nationwide processing and delivery facility that provides for the distribution and settlement'of electronic financial transactions. Electronic payment will not only expedite the payment process, but will also save applicants and licensees considerable time and money over a paper-based payment system.
l Third, the NRC proposes that the two professional hourly rates established in FY 1997 in 9170.20 be revised based on the FY 1998 budget. These proposed rates would be based on i I
the FY 1998 direct FTEs and the FY 1998 budget excluding direct program support and the )
I appropriation from the NWF or the General Fund. These rates are used to determine the Part 170 fees. The NRC is proposing to establish a rate of $124 per hour ($219,901 per direct FTE) for the reactor program. This rate would be applicable to all activities whose fees are based on full cost under 9170.21 of the fee regulations. A second rate of $121 per hour ($214,185 per direct FTE) is proposed for the nuclear materials and nuclear waste program. This rate would be applicable to all materials a are based on full cost under $170.31 of the fee regulations. In the FY 1997 final fee rule, these rates were $131 and $125, respectively.
The decrease in the hourly rates is primarily the result of excluding surcharge costs from the hourly rate calculation. Previously, budgeted costs for the Special Technical Program Cost Center were excluded from the hourly rate calculation. This Cost Center, which included certain surcharge costs, is no longer part of the budget structure. Based on this change to the budget structure and to maintain consistency to the extent possible, the FY 1998 proposed hourly rates have been calculated by excluding the costs for all activities included in the i
t l surcharge.
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In addition, Section Chiefs are included as overhead in the calculation of the proposed 10
.o .
Part 171 Billing Adiustment' Small Entity Allowance ,
5.0 5.8 Unpaid FY 1997 invoices 3.0 3.9 I
Payments from prior yearinvoices .23 -12 Subtotal -
_ga . 6.5 Total Part 171 Billing $373.1 $366.7
'These adjustments are necessary to ensure that the " billed" amount results in the required collections. Positive amounts indicate amounts billed that will not be collected in FY 1998.
Third. Footnote 1 of 10 CFR 171.16(d) would be amended to provide for a waiver of annual fees for FY 1998 for those materials licensees, and holders of certificates, registrations, j
. and approvals who either filed for termination of their licenses or approvals or filed for possession only/ storage licenses before October 1,1997, and permanently ceased licensed ,
activities entirely by September 30,1997. All other licensees and approval holders who held a license or approval on October 1,1997, are subject to FY 1998 annual fees. This change is being made in recognition of the fact that since the final FY 1997 rule was published in May 1997, some licensees have filed requests for termination of their licenses or certificates with the NRC. Other licensees have either cal led or written to the NRC since the FY 1997 final rule became effective requesting further clarification and information concerning the annual fees L
assessed. The NRC is responding to these requests as quickly as possible. However, the .
NRC was unable to respond and take action on all such equests before the end of the fiscal year on September 30,1997. Similar situations existed after the FY 1991-1996 rules were 16
-Q 4 published, and in those cases, the NRC provided an exemption from the requirement that the l
annual fee is waived only who'n a license is terminated before October 1 of each fiscal year. l Fourth, $171.19 would be amended to update fiscal year references and to credit the partial payments made by certain licensees in FY 1998 either toward their total annual fee to be s&f assessed or to make refunds, if necessa . $171.19(a) would also be amended to provide credit cards as an additional method of' payment, and to provide additionalinformation on electronic payments. Credit card payments would be accepted for small dollar payments.
Electronic payments may be made by Fedwire (a funds transfer system operated by the Federal Reserve System) or by Automated Clearing House (ACH). ACH is a nationwide processing and delivery facility that provides for the distribution and settlement of electronic
)
financial transactions. Electronic payments will not only expedite the payment process, but will l
l also save applicants and licensees considerable time and money over a paper-based payment I system.
i I
The NRC will send an invoice to reactors and major fuel cycle facilities for the amount of the annual fee upon publication of the FY 1998 final rule. For these licensees, payment will be due on the effective date of FY 1998 rule. Those materials licensees whose license anniversary date during FY 1998 falls before the effective date of the final FY 1998 rule will be l
billed during the anniversary month of the license and continue to pay annual fees at the FY t
1997 rate in FY 1998. Those materials licensees whose license anniversary date falls on or l after the effective date of the final FY 1998 rule would be billed, at the FY 1998 revised rates, during the anniversary month of the license and payment would be due on the date of the !
invoice.
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} 2(o0, 890 Dividing the udget for the reactor programfby the number of reactor program direct FTEs (1,186.4) results in a rate for the reactor program of $219,901 per FTE for l
Y FY 1998. Dividing the $57.3 .!':b., budget for the nuclear materials and nuclear waste L($6936loloSD_0) programiby the number of program direct FTEs (267.3) results in a rate of $214,185 per FTE for FY 1998. The Direct FTE Hourly Rate for the reactor program would be $124 per hour (rounded to the nearest whole dollar). This rate is calculated by dividing the cost per direct FTE
($219,901) by the number of productive hours in one year (1,776 hours0.00898 days <br />0.216 hours <br />0.00128 weeks <br />2.95268e-4 months <br />) as indicated in the j revised OMB Circular A-76," Performance of Commercial Activities." The Direct FTE Hourly j Rate for the materials program would be $121 per hour (rounded to the nearest whole dollar).
This rate is calculated by dividing the cost per direct FTE ($214,185) by the number of productive hours in one year (1,776 hours0.00898 days <br />0.216 hours <br />0.00128 weeks <br />2.95268e-4 months <br />).
i The proposed FY 1998 hourly rates are slightly lower than the FY 1997 rates. The decrease in the hourly rates is primarily the result of excluding surcharge costs from the hourly rate calculation in FY 1998. Previously, certain surcharge categories were excluded from the i
hourly rate calculation. Because of changes to the budget structure and in order to maintain consistency to the extent possible, the FY 1998 hourly rates have been calculated by excluding the costs for all activities included in the surcharge.
i Section 170.21 Schedule of Fees for Production and Utilization Facilities, Review of Standard Reference Design Approvals, Special Projects, inspections and import and Export Licenses.
The NRC~is proposing to revise the licensing and inspection fees in this section, which are based on full-cost recovery, to reflect FY 1998 budgeted costs and to recover costs 22
incurred by the NRC in providing licensing and inspection services to identifiable recipients.
The fees assessed for service's provided under the schedule are based on the professional hourly rate, as shown in $170.20, for the reactor program and any direct program support (contractual services) costs expended by the NRC. Any professional hours expended on or after the effective date of the final rule will be assessed at tha FY 1998 hourly rate for the 1
reactor program, as shown in 9170.20. The fees in $170.21 for the review of import and export licensing, facility Category K, would be adjusted for FY 1998 to reflect the revised hourly rate.
l Section 170.31 Schedule of Fees for Materials Licenses and Other Regulatory Services, including inspections and import and Export Licenses.
The licensing and inspection fees in this section, which are based on full-cost recovery, would be modified to recover the FY 1998 costs incurred by the NRC in providing licensing and l' inspection services to identifiable recipients. The fees assessed for services provided under the schedule would be based on both the professional hourly rate as shown in $170.20 for the materials program and any direct program support (contractual services) costs expended by the NRC. Licensing fees based on the average time to review an application (" flat" fees) would be adjusted to reflect the decrease in the professional hourly rate from $125 per hour in FY 1997 to $121 per hour in FY 1998.
l l The amounts of the materials licensing " flat" fees were rounded o so that the amounts would be de minimis and the resulting flat fee would be convenient to the user. Fees under
$1,000 are rounded to the nearest $10. Fees that are greater than $1,000 but less than
$'i00,000 are rounded to the nearest $100. Fees that are greater than $100,000 are rounded 23
83, Stat. 444, as amended (42 U.S.C. 2201 (b), (i), (o),2236,2282); sec. 206,88 Stat.1246 (42 U.S.C. 5846). Section 2.205(J) also issued under Pub. L. 101-410,104 Stat. 890, as amended by section 31001(s), Pub. L.104-134,110 Stat.1321-373 (28 U.S.C. 2461 note).
Sections 2.600-2.606 also issued under sec.102, Pub. L.91-190,83 Stat. 853, as amended (42 U.S.C. 4332). Sections 2.700a,2.719 also issued under 5 U.S.C. 554. Sections 2.754, 2.760,2.770,2.780 also issued under 5 U.S.C. 557. Section 2.764 also issued under secs. 135,141, Pub. L.97-425,96 Stat. 2232,2241 (42 U.S.C.10155,10161). Section 2.790 also issued under sec.103,68 Stat. 936, as amended (42 U.S.C. 2133) and 5 U.S.C. 552. Sections 2.800 and 2.808 also issued under 5 U.S.C. 553. Section 2.809 also issued under 5 U.S.C.
553 and sec. 29, Pub. L.85-256,71 Stat. 579, as amended (42 U.S.C. 2039). Subpart K also issued under sec.189,68 Stat. 955 (42 U.S.C. 2239); sec.134, Pub. L.97-425,96 Stat.
2230 (42 U.S.C.10154). Subpart L also issued under sec.189,68 Stat. 955 (42 U.S.C. 2239).
Appendix A also issued under sec. 6, Pub. L.91-560,84 Stat.1473 (42 U.S.C. 2135). l l
Appendix B also issued under sec.10, Pub. L.99-240, 99 Stat.1842 (42 U.S.C. 2021b et seq.).
- 2. In $2.205, paragraph (i) is revised to read as follows:
62.205 Civil!enalties i
(i) Except when payment is made after compromise or mitigation by the Department of Justice or as ordered by a court of the United States, following reference of the matter to the 37 l
l l
Attorney General for collection, payment of civil penalties imposed under Section 234 of the Act are to be made payable to the'U.S. Nuclear Regulatory Commission, in U.S. funds, by check, draft, money order, credit card, or electronic funds transfer such as Automated Clearing House (ACH) using Electronic Data Interchange (EDI). Federa gencies may also make payment by the On-Line Payment and Collections System (OPAC's). Where specific payment instructions are provided with the civil penalty notice, payment should be made accordingly, e.g. penalties of $5,000 or more should be paid via ACH through NRC's Lockbox Bank at the address indicated in the payment instructions provided as enclosure to the civil penalty notice. Credit card payments should be made up to the limit established by the credit card bank, in accordance with specific instructions provided as enclosure to the civil penalty notice, to the Lockbox Bank designated for credit card payments.
PART 140 - FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS
- 3. The authority citation for Part 140 continues to read as follows:
Authority: Secs.161,170,68 Stat. 4t8,71 Stat. 576, as amended (42 U.S.C. 2201, 2210); secs. 201, as amended,202,88 Stat.1242, as amended, 1244 (42 U.S.C. 5841, 5842).
- 4. In $140.7, paragraphs (a) and (c) are revised and paragraph (d) is added to read as follows:
6140.7 Fees .
i
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(a) ) Each reactor licensee shall pay a fee to the Commission based on the following schedule: ,
(i) For indemnification from $500 million to $400 million inclusive, a fee of $30 per year per thousand kilowatts of thermal capacity authorized in the license; (ii) For indemnification from $399 million to $300 million inclusive, a fee of $24 per year per thousand kilowatts of thermal capacity authorized in the license.
(iii) For indemnification from $299 million to $200 million inclusive, a fee of $18 per year per thousand kilowatts of thermal capacity authorized in the license; (iv) For indemnification from $199 million to $100 million inclusive, a fee of $12 per year per thousand kilowatts of thermal capacity authorized in the license; ina sis is (2) No fee . be less than $100 per annum for any nuclear reactorh fee shelk-
,/ M M for the period beginning with the date on which the applicable indemnity agreement is effective. The various levels of indemnity fees are set forth in the schedule in this paragraph.
The amount of indemnification for determining indemnity fees will be computed by subtracting from the statutory limit of liability the amount of financial protection required of the licensee. In wat the case of licensees subject to the provision of $140.11(a), this total amount sybe the amount as determined by the Commission, of the financial protection available to licensees at the close of the calendar year preceding the one in which the fee becomes due. For those instances in which a certified financial statement is provided as a guarantee of payment of i
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deferred premiums in accordar'ce with $140.21(e), a fee of $1,000 or the indemnity fee, is y whichever is greater, ehe;; be required.
(c) Each person licensed to possess and use plutonium in a plutonium processing and
- fuel fabrication plant shall pay to the Commission a fee of $5,000 per year for indemnification.
This fee Mor the period beginning with the date on which the applicable indemnity agreement is effective.
(d) Indemnity fee payments, made payable to the U.S. Nuclear Regulatory Commission, are to be made in U.S. funds by check, draft, money order, credit card, or electronic funds transfer such as ACH (Automated Clearing House) using EDI (Electronic Data Interchange). Federa[gencies may also make payments by the On-Line Payment and Collections System (OPAC's). Where specific payment instructions are provided on the invoices, payment should be made accordingly, e.g. invoices of $5,000 or more should be paid . -
via ACH through NRC's Lockbox Bank at the address indicated on the invoice. Credit card payments should be made up to the limit established by the credit card bank, in accordance with specific instructions provided with the invoices, to the Lockbox Bank designated for credit card payments.
PART 170 - FEES FOR FACILITIES, MATERIALS, IMPORT AND EXPORT LICENSES, AND OTHER REGULATORY SERVICES UNDER THE ATOMIC ENERGY ACT OF 1954, AS AMENDED
- 5. The authority citation for Part 170 continues to read as follows:
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Authority: 31 U.S.C. 9701,96 Stat.1051; sec. 301, Pub. L.92-314,86 Stat. 222 (42 U.S.C. 2201w); sec. 201, Pub'. L. 93-4381,88 Stat.1242, as amended (42 U.S.C. 5841); sec. 205, Pub. L.101-576,104 Stat. 2842, (31 U.S.C. 901).
- 6. Section 170.12, paragraphs (g) and (h) are revised to read as follows:
b (70,1y Pr W
4~tR K % -7v W (g) Inspection fees. (1) Inspection fees will be assessed to recover full cost for each 4
resident inspector assigned to a specific plant or facility. The fees assessed will be based on the number of hours that each inspector assigned to the plant or facility is in an offical duty status (i.e., all time in a non-leave status will be billed), and the hours will be billed at the appropriate hourly rate established in 10 CFR 170.20.
(2) Fees for all inspections subject to full cost recovery will be assessed on a per inspection basis for costs incurred up to 30 days after issuance of the inspection report.
Inspection costs include preparation time, time on site, documentation time, and follow - up activities and any associated contractual service costs, but exclude the time involved in the processing and issuance of a notice of violation or civil penalty. Resident inspector time related
/Ju*MTh C9]
to a specific inspection will be assessed in accordance with,(1) , and will not be reflected in the costs billed for the specific inspection. 0[ //d gec;/An i
I (3) Fees for resident inspectors' time and for specific inspections subject to full cost recovery will be billed on a quarterly basis and are payable upon notification by the l Commission.
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l (h) Method of payment. License fee payments, made payable to the U.S. Nuclear Regulatory Commission, are to be made in U.S. funds by check, draft, money order, credit j
card, or electronic funds transfer such as ACH (Automated Clearing House) using EDI (Electronic Data Interchange). Where specific payment instructions are provided on the j J
invoices to applicants and licensees for services rendered, payment should be made i
accordingly, e.g. invoice of $5,000 or more should be paid via ACH through NRC's Lockbox Bank at the address indicated on the invoice. Credit card payments should be made up to the limit established by the credit card bank, in accordance with specific instructions provided with 1
the invoices, to the Lockbox Bank designated for credit card payments. Unbilled application l and amendment fees are to be paid in a similar manner using the above methods. Applicants and licensees should contact the License Fee and Accounts Receivable Branch at 301-415-7554 to obtain specific written instructions for making electronic payments and credit card payments.
N b N h k
- 7. Section 170.20 is revised to read as follows:
6170.20 Averaae cost oer professional staff-hour.
Fees fer permits, licenses, amendments, renewals, special projects, Part 55 requalification and replacement examinations and tests, other required revi6ws, approvals, and l inspections under $5170.21 and 170.31 that are based upon the full costs for the review or l l
inspection will be calculated using the following applicable professional staff-hour rates:
Reactor Program $124 per hour 42
- 9. Section 170.31 is revised to read as follows:
6170 31 Schedule of feas for materials licenses and other regulatorv services. including inspections. and imoort and exoort licenses. .
Applicants for materials licenses, import and export licenses, and other regu!atory services and holders of materials licenses, or import and export licenses shall pay fees for the following categories of services. This schedule includes fees for health and safety and safeguards inspections where applicable.
SCHEDULE OF MATERIALS FEES (See footnotes at end of table)
Categorv of materials licenses and tvoc of fees' ys _
- 1. Special nuclear material:
j A. Licenses for possession and use of 200 grams or more of i
plutonium in unsealed form or 350 grams or more of contained i
U-235 in unsealed form or 200 grams or more of U-233 in unsealed form. This includes applications to terminate licenses as well as licenses authorizing possession only:
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nonprofit educational institutions whose processing or manufacturing is exempt under 10 CFR 170.11(a)(4). These licenses are covered by fee Category 3D.
Application - New license . . . . . . . . . . . . . . . . . . . . . . . . . . . $f.,800 Amendment . . . . . . . . . . . . . . . . . . . . . .... ....... ..$630 D. Licenses and approvals issued pursuant to @ 32.72, 32.73, and/or 32.74 of this chapter authorizing distribution or redistribution of radiopharmaceuticals, generators, reagent kits and/or sources or devices not involving processing of byproduct material. This category includes licenses issued pursuant to 5932.72, 32.73, of rb y /ex and/or 32.74bo nonpro/ Air fit educational institutions whose processing or manufacturing is exempt under 10 CFR 170.11(a)(4).
Application - New license . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,900 Amendment . . ............... .. .......... . . ..$420 E. Licenses for possession and use of byproduct materialin sealed sources for irradiation of materials in which the source is not removed from its shield (self-shielded units):
Application - New license . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,100 Amendment . . ..................... ...... .. .... 5380 1 52
. j (42 U.S.C. 2213); sec. 301, Pub. L.92-314,86 Stat. 222 (42 U.S.C. 2201(w));
sec. 201,88 Stat.1242, as amended (42 U.S.C. 5841); sec. 2903, Pub. L.102-486,106 Stat. 3125, (42 U.S.C. 2214 note).
- 11. Section 171.13 is revised to read as follows:
6171.13 Notice.
The annual fees applicable to an operating reactor and to a materials licensee, including a Government agency licensed by the NRC, subject to this part and calculated in accordance with 55171.17 and 171.16, will be published as a notice in the FEDERAL REGISTER as soon as is practicable but no later than the third quarter of the fiscal year. The annual fees will become due and
(#
payable to the NRC ifccordance with 9171.19 except as provided in 9171.17. )(
Quarterly payments of the annual fees of $1000,000 or more wik continue during the fiscal year and be based on the applicable annual fees as shown in @$171.15 and 171.16 of the regulations until a notice conceming the revised amount of the fees for the fiscal year is published by the NRC. If the NRC is unable to publish a final fee rule that becomes effective during the current fiscal year, then fees would be assessed based on the rates in effect for the previous fiscal year.
- 12. In 9171.15, paragraphs (b), (c) introductory text, (c)(1), (c)(2), (e),
and (f) are revised to read as follows:
72
l (f) For each fiscal year, annual fees for operating reactors will be calculated end assessed in accordance with $171.13.
- 13. In $171.16, the introductory text of paragraph (c) and paragraphs (c)(1), (c)(4), (d), and (e) are revised to read as follows:
6171.16 Annual Fees: Materials Licensees. Holders of Certificates of Comoliance. Holders of Sealed Source and Device Registrations. Holders of Quality Assurance Proaram Acorovals and Government aencies censed by the NRC.
(c) A licensee who is required to pay an annual fee under this section may oualify as a small entity, if a licensee qualifies as a tmall entity and pr>vides the Commission with the proper certification, the licensee may pay reduced annual fees for FY 1998 as follows:
Small Businesses Not Enaaaed Maximum Annual Fee 10 Manufacturing and Small Per Licensed Cateaorv Not-For-Profit Organizations (Gross Annual Receiots)
$350,000 to $5 million . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........... $1,800 75 1
certificates, registrations or approvals subject to fees under this section are shown below. The FY 1998 annual fees, which must be collected by September 30,1998, have been determined by adjusting upward the FY 1997 exact annual fees (prior.to rounding), by 0.1 percent. As a result of rounding, the FY 1998 annual fee for some fee categories.is the same as the FY 1997 annual fee. In the FY 1995 final rule, the NRC stated it would stabilize annual fees by adjusting the annual fees only by the percentage change (plus or minus) in NRC's total .
budget authority and adjustments based on changes in 10 CFR Part 170 fees as well as on the number of licensees paying the fees. The first adjustment to the annual fees using this method occurred in FY 1996 when all annual fees were decreased 6.5 percent below the FY 1995 annual fees. The FY 1997 annual fces were also determined by using this method. The FY 1997 annual fees were increased 8.4 percent above the FY 1996 annual fees. The FY 1995 annual fee was comprised of a base annual fee and an additional charge (surcharge). The activities comprising the FY 1995 surcharge are shown for convenience in paragraph (e) of this section.
SCHEDULE OF MATERIALS ANNUAL FEES AND FEES FOR GOVERNMENT AGENCIES LICENSED BY NRC (See footnotes at end of table)
Cateoorv of materials licenses Annual Fees' 2 8
- 1. Special nuclear material:
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_ _ _ _ _ _ - _ _ _ _ _ _ - _ _ _ _ _ _ _ _ - _ _ - - - _ _ _ _ _ _ _ _ _ - _ _ - _ . ---_ -_-- D
A.(1) Licenses for possession and use of U-235 or f X {l plutonium for fuel abrication activities.
j i
._ _p i Strategic Special Nuclear Material:
1
(
Babcock & Wilcox SNM-42 . . . . . . . . . . . . . . . . . . . . . . $2,607,000 Nuclear Fuel Services SNM-124 . . . . . . . . . . . . . . . . . . $2,607,000
.T A fLf $N i k(b)
~
Low Enriched Uranium in Disper e Form Used for A
X Fabrication of Power Reactor Fuel:
Combustion Engir.eering
-Q hematite) SN M-33 . . . . . . . . . . . . . . . . . . . . . . . . . . $1,280,000 General Electric g bCompany SNM-1097 . . . . . . . . . . . . . . . . . . . . . . . . . . $1,280,000 Siemens Nuclear Power SNM-1227 . . . . . . . . . . . . . . . $1,280,000 i
i Westinghouse Electric SNM-1107 . . . . . . . . . . . . . . . . . $1,280,000
\ '
g Compan
-4 I
(2) All other special nuclear materials licenses not included in Category 1.A.(1) which are licensed for fuel cycle activities.
i (a) Facilities with I!mited operations:
B&W Fuel Company SNM-1168 . . . . . . . . . . . . . . . $509,000 78
processing or manufacturing of items containing byproduct material for commercial distribution. . . . . . . . . . . . $5,600 C. Licenses issued pursuant to $$32.72, 32.73, and/or ,
32.74 of this chapter authorizing the processing or manufacturing and distribution or redistribution of radio-g
. pharmaceuticals, generators, reagent kits and/or sources and devices containing byproduct material. This category also includes the possession and use of source material for shielding authorized pursuant to Part 40 of this chapter when included on the same license. This category does not apply to licenses issued to nonprofit educational institutions whose processing or manufacturing is exempt under 10 CFR 171.11(a)(1).
These licenses are covered by fee Category 3D. . . . . . . . . . $11,200 D. Licenses and approvals. Issued pursuant to $$32.72, 32.73, and/or 32.74 of this chapter authorizing distribution .
or redistribution of radiopharmaceuticals, generators, I l
reagent kits and/or sources or devices not involving i processing of byproduct material. This category includes licenses issued pursuant to $$32.72,32.73 and 32.74 to nonprofit educational institutions whose processing or manufacturing is exempt under 10 CFR 171.11(a)(1).
82 '
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(e) The activities comprising the FY 1995 surcharge are as follows:
(1) LLW disposal generic activities; (2) Activities not attributable to an existing NRC licensee or classes of licensees; e.g.,
intemational cooperative safety program and international safeguards activities; support for the Agreement State program; site decommissioning management plan (SDMP) activities; and (3) Activities not currently assessed licensing and inspection fees under 10 CFR Part 170 based on existing law or Commission policy, e.g., reviews and inspections conducted of nonprofit educational institutions and Federal agencies; activities related to decommissioning and reclamation and costs that would not be collected from small entities based on Commission policy in accordance with the Regulatory Flexibility Act.
Geahn $_t 1 171.19pe;; ;ph; (e), (t,), (c), er.Hd)ar vised to read as follows:
6171.19 Pavment.
(a) Method of payment. Annual fee payments, made payable to the U.S. Nuclear Regulatory Commission, are to be made in U.S. funds by check, draft, money order, credit card, or electronic funds transfer such as ACH (Automated Clearing House) using EDI (Electronic Data Interchange). Federal agencies may also make payment by the On-line Payment and Collection System (OPAC's). Where specific payment instructions are provided on the invoices to applicants and licensees, payment should be made accordingly, e.g. invoices of $5,000 or more should be paid via ACH through NRC's Lockbox Bank at the address indicated on the invoice. Credit card payments should be made up to the limit established by l the credit card bank, in accordance with specific instructions provided with the invoices, to the i Lockbox Bank designated for credit card payments. FY 1998, the Commission will adjust the j fourth quarterly invoice for operating power reactors and certain materials licensees to recover the full amount of the revised annual fee. If the amounts collected in the first three quarters 94
the next available monthly billing for the fee in effect on the anniversary date of the license.
Thereafter, annual fees for new licenses will be assessed in the anniversary month of the license.
Dated at Rockville, Maryland, this day of .1998.
For the Nuclear Regulatory Commission.
Jesse L. Funches; Chief Financial Officer, i
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I' NRC's size standards as proposed was developed and approved by the SBA on March 24, 1995. The NRC published the final rule revising its size standards on April 11,1995 (60 FR l 18344). The revised standards became effective May 11,1995. The revised standards adjusted the NRC receipts-based size standards from $3.5 million to $5 million to accommodate I inflation and to conform to the SBAfinal rule. The NRC also eliminated the separate $1 million I
i l size standard for private practice physicians and applied a receipts-based size standard of $5 i million to this class of licensees. This mirrored the revised SBA standard of $5 million for l
medical practitioners. The NRC also established a size standard of 500 or fewer employees for l
)
business concems that are manufacturing entities. This standard is the most commonly used SBA employee standard and is the standard applicable to the types of manufacturing industries l that hold an NRC license.
I i
The NRC used the revised standards in the final FY 1995, FY 1996 and FY 1997 fee rules and is continuin thejr use in this FY 1998 proposed rule. The small entity fee categories y (}g in $171.16(c) of thi rule reflect the changes in the NRC's size standards adopted in FY l
1995. A new maximum small entity fee for manufacturing industries with 35 to 500 employees was established at $1,800 and a lower-tier small entity fee of $400 was established for those manufacturing industries with less than 35 employees. The lower-tier receipts-based threshold I l
of $250,000 was raised to $350,000 to raflect approximately the same percentage adjustment
~ as that made by the SBA when they ac. justed the receipts based standard from $3.5 million to l $5 million. The NRC believes that continuing these actions for FY 1998 will reduce the impact of annual fees on small businesses. The NRC size standards are codified at 10 CFR 2.810.
Public Law 101-508, the Omnibus Budget Reconciliation Act of 1990 (OBRA-90),
98
ATTACHMENT 1 TO APPENDIX A i
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U. S. Nuclear Regulatory Commission i Small Entity Compliance Guide Fiscal Year 1998 1
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Introduction The Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) requires all Federal agencies to prepare a written guide for each " major" final rule as defined by the Act.
The NRC's fee rule, published annually to comply with the Omnibus Budget Reconciliation Act of 1990 (OBRA-90) which requires the NRC to collect approximately 100 percent of its budget authority each year through fees, meets the thresholds for being considere ajor' rthe SBREFA. Therefore, in compliance with the law, this small entity compliance guide has been prepared for FY 1998. The purpose of this guide is to assist small entitit S in complying with the NRC fee rule.
This guide is designed to aid NRC materials licensees. The information provided in this guide may be used by licensees to determine whether they qualify as a small entity under NRC regulations and are therefore eligible to pay reduced FY 1998 annual fees assessed under 10 CFR Part 171. The NRC, in compliance with the Regulatory Flexibility Act of 1980 (RFA), has established separate annual fees for those materials licensees who meet the NRC's size standards for small entities. These size standards, developed in consultation with the Small Business administration, were revised by the NRC and became effective on May 11,1995.
The small entity size standards are found 10 CFR 2.810 of the NRC's regulations. To comply at with the RFA, the NRC has established two tiersA of smalIentity fees. These fees are found 4 N&c 's 10 CFR 171.16(c) of the egulations.
l l Licensees who meet NRC's size standards for a small entity must complete NRC Form 526 in order to qualify for the reduced annual fee. NRC Form 526 will accompany each annual 2
t )
I fee invoice mailed to materials licensees. The completed form, along with the appropriate small entity fee and the payment copy of the invoice, should be mailed to the U.S. Nuclear Regulatory i
l l Commission, License Fee and Accounts Receivable Branch, P.O. Box 954514, St. L:,uis, MO I 63195-4514.
i NRC Definition of Small Entitv g, W(' 4 g
The NRC,kas defined a small entity for purposes of its regulationfm n_ consultation with.
I the Small Business AdministrationhThe definition is codified in NRC's regulations at 10 CFR l -- v l 1
2.810. Under the NRC regulation, a small entity is:
- 1. Small business - a for-profit concem that provides a service or a concern not engaged in manufacturing with average gross receipts of $5 million or i
less over its last 3 completed fiscal years; l 2. Manufacturing industry - a manufacturing concern with an average number of 500 or fewer employees based upon employment during each l
pay period for the preceding 12 calendar months; i
- 3. Small organization - a not-for-profit organization which is independently ;
l owned and operated and has annual gross receipts of $5 million or less; l
- 4. Small govemmental jurisdiction - a govemment of a city, county, town, township, village, school district or special district with a population of less 3
than 50,000;
- 5. Small educational institution - an educational institution supported by a qualifying small governmental jur.icdiction, or one that is not state or publicly supported and has 500 or fewer employees' NRC Small Entity Fees I
The NRC has established two tiers of small entity fees for licensees that qualify under A
the NRC's size standards. Currently, these fees are as follows:
Small Business Not Enanaed Maximum Annual Fee in Manufacturing and Small Per Licensed Not-For Profit Organizations Cateoorv (Gross Annual Recelots)
$350,000 to $5 million $1,800
- Less than $350,000 $400 l
l 1
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' An educational institution referred to in the size standards is an entity whose primary function is education, whose programs are accredited by a nationally recognized accrediting agency or association, who is legally authorized to provide a program of organized instruction or study, who provides an educational program for which it awards academic degrees, and whose educational programs are available to the public.
4 t
Less than 35 employees $400 To pay a reduced annual fee, a licensee must use NRC Form 526, enclosed with the fee invoice, to certify that it meets NRC's size standards for a small entity. About 1,400 licensees certify each year that they qualify as a small entity under the NRC size standards and pay a reduced annual fee. Approximately 800 licensees pay the small entity fee of $1,800 while 600 licensees pay the lower-tier,small,tntity fee of $400.
9 Instructions for Comotetino NRC Form 526
- 1. File a separate NRC Form 526 for each annual fee invoice received.
- 2. Complete all items on NRC Form 526 as follows:
- a. The license number and invoice number must be entered exactly as they appear on the annual fee invoice. -
- b. The Standard Industrial Classification (SIC) Code should be entered if it is known.
- c. The licensee's name and address must be entered as they appear on the invoice. Name and/or address changes for billing purposes must be annotated on the invoice. Correcting the name and/or address on NRC Form 526 or on the
!nvoice does not constitute a request to amend the license. Any request to 6
i
amend a license is to be submitted to the respective licensing staffs in the NRC Regional or Headquarters Offices.
- d. Check the appropriate size standard under which the licensee qualifies as a small entity. Check one box only. Note the following:
(1)- The size standards apply to the licensee, not the individual authorized users listed in the license.
i (2) - Gross annual receipts as used in the size standards includes all revenue in whatever form received or accrued from whatever sources, not solely receipts from licensed activities. There are limited exceptions as set forth at i fm 13 CFR 121.104. These are: the term receipts excludes net capital i
gains or losses, taxes collected for and remitted to a taxing authority if included in gross or total income, proceeds from the transactions between a concern and its domestic or foreign affiliates (if also excluded I-from gross or total income on a consolidated retum filed with the IRS),
and amounts collected for another by a travel agent, real estate agent, advertising agent, or conference management service provider.
(3) A licensee who is a subsidiary of a large entity does not qualify as a small l
entity.
(4) The owner of the entity, or an official empowered to act on behalf of the 7
954514, St. Louis, MO 63195-4514.
- 5. Questions regarding fee invoices may be posed orally or in writing. Please call the i
license fee staff at 301-415-7554 or write to the U.S. Nuclear Regulatory Commission, Washington, DC 20555, Attention: Office of the Chief Financial Office ['o 2' e c-mo
@ NRC 6 0V.
nt _
l
- 6. False certification of small entity status could result in civil sanctions being imposed by l the NRC pursuant to the Program Fraud Civil Remedies Act,31 U.S.C. 3801 at. Ang.
1 4b NRC's implementing regulations are found 10 CFR Part 13.
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DOCUMENT NAME: g:\ proposed.98 fee tw e em ., m um.m. inac . m in. 6.m c . copy wanout an. chm.nt/.ncio.w. r - copy wan en. chm.m/.neio.w. u - we copy 0FFICE OCF0 l OCF0:DAF l ADM l OGC NMSS l NAME GJackson.DDandois JTurdici ELHalman TBRothschild CJPaperiello j DATE / /98 / /98 / /98 / /98 / /98 1
OFFICE NRR l OIP l OE l EDO l DCF0 l CF0 l NAME SCollins CRStoiber JLieberman JCallan PRabideau JLFunches DATE / /98 / /98 / /98 / /98 / /97 0FFICIAL RECORD COPY l 10 l
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Q Ok } Aj FY 1998 hourly rate, and any specific Section Chief effort expended for reviews and - g( & j inspections will not be billed to' the applicant or licensee. Previously, the Section Chiefs' time sh for specific licensing and inspectiori activities were directly billed under Part 170 to the applicant or licensee. This change is consistent with the current budget structure which includes Section Chiefs as overhead.
l Fourth, the NRC proposes to adjust the current Part 170 licensing fees in 55170.21 and 170.31 to reflect the revised hourly rates.
In summary, the NRC is proposing to:
l (1) Assess Part 170 fees to recover costs for all of the resident inspectors' official duty time (i.e, excluding leave) and costs incurred within 30 days after issuance of an inspection report.
(2) Offer additional payment methods for 10 CFR Part 170 fees.
(3) Revise the two 10 CFR Part 170 hourly rates.
. (4) Revise the licensing (application and amendment) fees assessed under 10 CFR Part 170 to reflect the revised hourly rates.
Although not a specific change to Part 170, the NRC also is announcing plans to change the current policy with regard to fees for activities performed during overtime. he r ^< .1 m L 11
~-~ "i1AR.19.1998~ 1io9PM ~ fMC CkO 301 4'15 4236 tlo[725 P.3
)
in-tOCFR-170.20 include 4varti==_ awe ha"_-" gurrently only work performed during regular hours is billed to the applicants and licensees. To more fully recover costs under Part 170, the NRC plans to assess Part'170 fees for compensated overtime hours expended for activities covered by Part 170, such as reviews of applications, inspections, Part 55 exams, and special projects. The compensated overtime hours will be billed at the normal hourly rate.
In addition, the NRC is also announcing plans to bill for accumulated inspection costs prior to issuance of the inspection report under certain circumstances. Currently, as provided in 10 CFR 170.12(g), inspection costs are billed only after the inspection is completed, i.e, when the inspection report is issued. As a result, in some cases' inspection costs accumulate over several billing cycles, and the licensee receives one invoice for these accumulated costs rather than being billed as the costs are expended. However, NRC plans to in-progress bill for inspections in selected cases where it is determined that such billing would be in the best Interest of the agency and the licensee. If it is determined that the accumulated costs war, ant I
an exception to the billing method currently provided in 10 CFR 170.12(g), NRC will coordinato with the licenses to establish a mutually agreeable billing schedule and will issue an invoice for inspection costs that have accumulated.
The NRC is developing a system that will accommodate routine billing for accumulated inspection costs at a specified interval. Once that system is available, the NRC intends to in-progress bill for all inspections. The staff is seeking early comment on the long-term policy in this FY 1998 proposed rule. The necessary revision to 10 CFR 170 would be made in future rulemaking when the system is available to accomplish this.
12 i RECE1UED FROM 03.19.1998 12:09 P. 3
tm .19.1998~ 1: 08Pt1 NRC CFO 301 415 4236 NO.7b5 Pb neau 0FFICE OF THE CHIEF FINANCIAL OFFICER f
=
8 FACSIMILE TRANSMITTAL SHEET 5
- ,* TODAY'S DATE: /O!9N CFO FAX NUMBER: 301-415-4CFO (4236)
CFO VERIFICATION: J01-415-7322 Loma P. Pini (Number) (Name)
FAXING TO:
(Name) (Organization)
Yf$ ~ 53 D (Fax Number) (Phone Number)
I FROM: Jesse Funches 301-415-7322 (Name) (Phone Number)
_ Chief Financial Officer O-17F1 __
(Omanization) (Location) l NUMBER OF PAGES: _
S (plus transmittalsheet)
MESSAGE:
Thank You.