ML20136J233
| ML20136J233 | |
| Person / Time | |
|---|---|
| Issue date: | 02/03/1997 |
| From: | Meyer D NRC OFFICE OF ADMINISTRATION (ADM) |
| To: | Scroggins R NRC OFFICE OF THE CONTROLLER |
| Shared Package | |
| ML20136J108 | List:
|
| References | |
| FRN-62FR8885, RULE-PR-170, RULE-PR-171 AF55-1-012, AF55-1-12, FR628885, NUDOCS 9703200062 | |
| Download: ML20136J233 (55) | |
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1 i f*' 4 FH-j y & UNITED STATES g -j I
UJCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20665-0001 bDk o\..... y j8
- j. February 3, 1997 MEMORANDUM FOR: Ronald M. Scroggins Ac C ief Financial Officer l FRM:
Eh4 L. Mey'er, Chief
'A Rules Review and Directives Branch Office of Administration
SUBJECT:
OFFICE CONCURRENCE ON PROPOSED RULE ENTITLED " REVISION OF FEE SCHEDULES; 100% FEE RECOVERY, FY 1997" l The Office of Administration concurs on the final rulemaking plan l that amends Parts 170 and 171. We have attached a marked copy of the package that presents additional comments.
.In order to assist you in preparing the list of documents centrally relevant to this rule that is required by NRC's regulatory history procedures, you should place the designator "AF55-1" in the upper l
right-hand corner of each document concerning the rule that you forward to the Nuclear Document System.
j Please note that the proposed rule may not be forwarded for i signature and publication until the Office of Information and
! Resources Management informs ADM that any issues affecting compliance with the Paperwork Reduction Act are resolved.
If you have any questions, please contact Mike Lesar on 415-7163, or me on 415-7162.
t
Attachment:
As stated l
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l f
1
! 9703200062 970317 PDR PR i4 170 62FR8885 PDR ,
[75 9 0 P] !
NUCLEAR REGULATORY COMMISSION 10 CFR Parts 170 and 171 l
RIN: 3150-AFf5 l
Revision of Fee Schedules; 100% Fee Recovery, FY 1997 AGENCY: Nuclear Regulatory Commission.
ACTION: Proposed rule.
I
SUMMARY
- The Nuclear Regulatory Commission (NRC) is proposing to amend the licensing, inspection, and annual fees charged to its applicants and licensees. The proposed amendments are necessary to implement the Omnibus Budget Reconciliation Act of 1990 (OBRA-90), which mandates that the NRC recover approximately 100 I
percent of its budget authority in Fiscal Year (FY) 1997 less amounts appropriated from the Nuclear Waste Fund (NWF). The l
amount to be recovered for FY 1997 is approximately $462.3 million.
DATES: The comment period expires (30 days after publication).
Comments received after this date will be considered if it~is practical to do so, but the NRC is able to ensure only that comments received on or before this date will be considered.
Because OBRA-90 requires that NRC collect the FY 1997 fees by
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.
l On April 12, 1996 (61 FR 16203) , the NRC published its final rule establishing the licensing, inspection, and annual fees necessary for the NRC to recover approximately 100 percent of its budget authority for FY 1996, less the appropriation received from the Nuclear Waste Fund. Several changes to the fees I assessed for FY 1996 were adopted by the NRC. These changes were highlighted in the final rule (61 FR 16203; April 12, 1996).
II. Proposed Action The NRC is proposing to amend its licensing, inspection, and annual fees to recover approximately 100 percent of its FY 1997 budget authority, including the budget authority for its Office of the Inspector General, less the appropriations received from the NWF and the General Fund. For FY 1997, the NRC's budget authority is $476.8 million, of which $11.0 million has been l
appropriated from the NWF. In addition, $3.5 million has been appropriated from the General Fund for activities related to commercial vitrification of waste stored at the Department of Energy Hanford, Washington site.
g The FY 1997 appropriation l language states that the $3.5 million appropriated for regulatory 4
l reviews and other activities pertaining to waste stored at the f
., es Hanford, Washington, site shall be excluded from license fee revenues notwithstanding 42 U.S.C. 2214. No funding was provided l
for these activities in FY 1996. Therefore, OBRA-90 requires that the NRC collect approximately $462.3 million in FY 1997 through 10 CFR Part 170 licensing and inspection fees and 10 CFR l l
Part 171 annual fees. The total amount to be recovered for FY l
1997 is the same as the amount to be recovered for FY 1996. The l NRC estimates that approximately $93 million (20 percent) will be recovered in FY 1997 from fees assessed under 10 CFR Part 170 and I
other offsetting adjustments. The remaining $369.3 million (80 )
. i percent) will be recovered through the 10 CFR Part 171 annual !
fees established for FY 1997. Because the 10 CFR Part 170 and other offsetting adjustments estimate of $93 million for FY 1997 is below the estimate of $120.5 million for FY 1996, this means that the collection distribution will be different from FY 1996.
As a result of this change in the collection distribution, annual fees would increase approximately 8 percent in FY 1997. These changes are more fully explained in Section B. As a result of the increased amount to be recovered for FY 1997 from annual fees and the proposed changes outlined in this section, the FY 1997 annual fees for all licensees have been increased by l approximately 8 percent compared to the annual fees assessed for i FY 1996. The following examples illustrate changes in annual i
i fees.
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are based on the average cost method (flat fees) . This review also includen new license and amendment applications for import and export licenses, i
Evaluation of the historical data shows that the average l number of professional staff hours needed to complete materials licensing actions should be increased in some categories and decreased in others to reflect the costs incurred in completing the licensing actions. Thus, the revised average professional staff hours reflect the changes in the NRC licensing review program that have occurred since TY 1995. The proposed licensing ;
fees are' based on the revised average professional staff hours j needed to process the licensing actions multiplied by the proposed nuclear materials professional hourly rate for FY 1997 of $124 per hour. The data for the average number of l professional staff hours needed to complete licensing actions were'last updated in FY 1995 (60 FR 32218; June 20, 1995). For new materials licenses, the proposed licensing-fees for FY 1997 L
I are increased in approximately 70 percent of the categories, while the proposed fees for materials amendments would increase in over 60 percent of the categories. J /7 ' i 56 N Inadditiontothef:beverul_ changes, the NRC is A - [ g ##
rafjen tf implementing a procedural change relating to the handling of correspondence submitted by licensees to comply with NRC's regulations. For example, the NRC in Administrative Letter 96-XX )
f issued January - , 199})informedreactorlicenseesthatquality 3C l assurance plan, safeguards contingency plag and g emergency plan changes submitted to NRC and the licensee's finding of no reduction in effectiveness would then be eligible post-implementation inspection. Therefore, such inspections would be subject to the inspection fees in 5170.21. This procedural change is being made because. current submittals of quality i assurance plan, safeguards contingency plan, and emergency plan changes submitted to the NRC do not clearly state, in some cases, 9
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the intent of the licensee to make a change that does not degrade the plan, but instead requests the Commission's advice or preliminary review of the acceptability for submitting the change. In order to remove any ambiguity as to the status of these submittals and NRC responses to them, the NRC is modifying its practice to allow for both in-office and onsite inspection of changes. During the inspection of the plan changes submitted, the NRC will notify the licensees of its continued compliance or noncompliance with NRC requirements in these areas. Should the NRC determine that the licensee did not properly characterize a change, the licensee may be subject to the provisions of 10 CFR sj9 Part 2.201 and issued a Notice of Violation. The NRC will issue an inspection report on Form to document these Regional as well as Headquarters in-office inspections and the licensee will be billed for the inspections unter S170.21 beginning with the effective date of the FY 1997 final fee rule,
,-lS In summary, the NRC is k CFR Part 170 hourly rates;N(proposing tol (1) j evise
- 2) 8evise the licensing
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the two 10 (application and amendment) feesassessedun$er10CFRPart170inorderto comply with the CFO Act's requirement that fees be revised to reflect the cost to the agency of providing the service;/P(3)
(harge g for inspections of qualify assurance plan,/p safeguards t
contingency plan and emergency plan changes; and F (4 ) Edd an exemption provision to the regulations exempt certain' amendments to materials portable gauge licenses.
B. Amendments to 10 CFR Part 171: Annual Fees for Reactor Operatino Licenses, and Fuel Cvele Licenses and Materials Licenses. Includina Holders of Certificates of Compliance, Recistrations. and Ouality Assurance Procram Acerovals and Government Acencies Licensed by NRC.
l The NRC proposes five amendments to 10 CFR Part 171. First, 1
the NRC proposes to amend S5171.15 and 171.16 to revise the i 10
l annual fees for FY 1997 to recover approximately 100 percent of the FY 1997 budget authority, less fees collected under 10 CFR Part 170 and funds appropriated from the NWF and the General Fund. In the FY 1995 final rule, the NRC stated that it would stabilize annual fees as follows. Beginning in FY 1996, the NRC would adjust the annual fees only by the percentage change (plus or minus) in NRC's total budget authority unless there was a substantial change in the total NRC budget authority or the magnitude of the budget allocated to a specific class of l licensees. If either case occurred, the annual fee base would be recalculated (60 FR 32225; June 20, 1995). The NRC also indicated that the percentage change would be adjusted based on changes in 10 CFR Part 170 fees and other adjustments as well as on the number of licensees paying the fees.
l In the FY 1996 final rule, the NRC stabilized the annual fees by establishing the annual fees for all licensees at a level
! of 6.5 percent below the FY 1995 annual fees. In this FY 1997 proposed rule, the NRC intends to follow the same method as used in FY 1996. Because the amount to be recovered through fees in FY 1997 is identical to the amount to be recovered in FY 1996, establishing new baseline fees is not warranted for FY 1997.
Therefore, the NRC is establishing the FY 1997 annual fees for all licensees at a level of 8 percent above the FY 1996 annual fees. The 8 percent increase results from the amount of the budget recovered for 10 CFR Part 170 fees and other offsetting adjustments q and changes in the number of licensees paying annual i
fees. Table I shows the total budget and fee amounts for FY 1996 and FY 1997. ^
i.
TABLE I h 8
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Calculation of the Percentaae Chance to the FY 1995 Annual Fees
, (Dollars in Millions)
FY96 FY97 Total Budget $473.3 $476.8 11 l
l Less NWF -11.0 -11.0 l
Less General Fund (Hanford Tanks) ---
-3.5 1
T0tal Fee Base $462.3 $462.3 l Less Part 170 Fees and Other Adjustments 120.5 93.0 T0tal Annual Fee Amount $341.8 $369.3 1
1 As shown in Table I, the total amount to be recovered from annual fees in FY 1997 is $27.5M ($369.3-$341.8) or 8 percent higher than the amount that was to be recovered from annual fees
! in FY 1996. This difference is the net change resulting from a
! reduction in the expected collections from 10 CFR Part 170 fees j and other adjustments. The NRC notes that the reduction in the estimates of 10 CFR Part 170 fees for FY 1997 is primarily in the areas relating to the review of applications for reactor operating licenses and the review of standard plant applications.
In addition, for the first time the estimates take into consideration an allowance for bad debt and collections receive l l
in the fiscal year as a result of billings from a prior fiscal year.
l In addition to changes in 10 CFR Part 170 fees and other adjustments, the number of licensees to pay fees in FY 1997 has changed compared to FY 1996. For example, the Haddam Neck power
)k' reactor has ceased operations and the fuel has been permanently removed from the reactorg lherefore, the utility will pay only a rtial annual fee in FY 1997 g The amount of the small entity surcharge (difference between annual fee and small entity fee) increased as the annual fees increased. The changes in the number of licensees in the various classes plus the increase in the small entity surcharge result in an additional increase in the annual fee per licensee of percent. Thus the total 12
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l adjusted for NRC offsetting receipts and the number of licensees paying annual fees.
III. Section-by-Section Analysis The following analysis of those sections that would be amended by this proposed rule provides additional explanatory 1
information. All references are to Title 10, Chapter I, U.S. l Code of Federal Regulations. l l
Part 170 Section 170.11 Exemptions.
i This section would be amended to add a new paragraph indicating that amendments to materials portable gauge licenses that change only the RSO would be exempt from amendment fees.
This change is consistent with the recent Business Process ReengineeriDe (BPR) initiative and NUREG-1556, Volume 1, issued ctober 3, 1 or public commeyt' (61 FR 51729) . No amendment fees would be assessed for the amendments to portable gauge licenses because the draft NUREG 1556, Volume 1, includes commitments from the licensee concerning RSO qualifications and if those commitments are included in the amendment application then there is no technical review conducted by the NRC.
Maintaining knowledge of the identity of the current RSO through a license amendment is for the convenience of the NRC. This proposed change is based on revised guidance for portable gauge licensees (approximately 1,200) which is the result of the BPR process whereby NRC is now taking a graded, more performance-based approach for regulating this category of licensees. The l NRC expects the NUREG to be finalized before the final fee rule i
becomes effective. If not, then this proposed change will not be included in the final fee regulation.
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l Section 170.20 Average cost per professional staf f- hour. I l l l
This section would be amended to establish two professional staff-hour rates based on FY 1997 budgeted costs--one for the l reactor program and one for the nuclear material and nuclear l waste program. Accordingly, the NRC reactor direct staff-hour rate for FY 1997 for all activities whose fees are based on full
. cost under S170.21 would be $131 per hour, or $233,330 per direct .
FTE. The NRC nuclear material and nuclear waste direct staff- I hour rate for all materials activities whose fees are based on i full cost under S170.31 would be $124 per hour, or $219,906 per direct FTE. The rates are based on the FY 1997 direct FTEs and NRC budgeted costs that are not recovered through the appropriation from the NWF or the General Fund. The NRC has l continued the use of cost center concepts established in FY,1995 in allocating certain costs to the reactor and materials programs in order to more closely align budgeted costs with specific classes of licensees. The method used to determine the two j professional hourly rates is as follows: i l
- 1. Direct program FTE levels are identified for both the reactor program and the nuclear material and waste program.
- 2. Direct contract support, which is the use of contract or other services in support of the line organization's direct program, is excluded from the calculation of the hourly rate because the costs for direct contract support are charged directly through the various categories of fees.
- 3. All other direct program costs (i.e., Salaries and Benefits, Travel) represent "in-house" costs and are to be allocated by dividing them uniformly by the total number of direct FTEs for the program. In addition, salaries and 'oenefits plus contracts for general and administrative support are l
allocated to each program based on that program's salaries and I
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based on full-cost recovery, would be modified to recover the FY i 1997 costs incurred by the NRC in providing licensing and inspection services to identifiable recipients. The fees assessed for services provided under the schedule would be based 1 on both the professional hourly rate as shown in S170.20 for the materials program and any direct program support (contractual )
services) costs expended by the NRC. Licensing fees based on the 1
i average time to review an application ("flata fees) would be adjusted to reflect both the revised average professional staff hours needed to process a licensing action (new license and amendment) and the increase in the professional hourly rate from
$120 per hour in FY 1996 to $124 per hour in FY 1997.
As previously indicated, the CFO Act requires that the NRC conduct a review iennial basisy of fees and other charges impise~d by the agency for its services and revise those charges to reflect the costs incurred in providing the services.
Consistent with the CFO Act requirement, the NRC has completed its most recent review of license fees assessed by the agency.
The review focused on the flat fees that are charged to nuclear materials users for licensing actions (new licenses, and amendments). The full cost license and inspection fees (e.g.,
- for fuel cycle facilities) and annual fees were not included in this biennial review because the hourly rate for full cost fees and the annual fees are reviewed and updated annually in order to
( recover 100 percent of the NRC budget authority.
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To determine the licensing flat fees for materials licensees and applicants, the NRC uses historical data to determine the average number of professional hours required to perform a licensing action for each license category. These average hours are multiplied by the proposed materials program professional hourly rate of $124 per hour for FY 1997. The review indicated that the NRC needed to modify the average number of hours on which the current licensing flat fees are based in order to recover the cost of providing licensing services. The average number of hours required for licensing actions was last reviewed and modified in 1995 (60 FR 32218; June 20, 1995). Thus the revised hours used to determine the proposed fees for FY 1997 reflect the changes in the licensing program that have occurred since that time; for example, new initiatives underway for certain types of licenses. For new licenses, the proposed fees for FY 1997 are increased in approximately 70 percent of the categories, while the proposed fees for amendments have increased in over 60 percent of the categories.
5' In addition to thebabmn changes, the NRC is implementing a procedural change relating to the handling of correspondence submitted by licensees to comply with the NRC's regulations. For example as permitted by the provisions of SS50.54 (a) (3) ,
A l J3 F O . 5' (p) (1) , and Gev54 (q) , reactor licensees may make changes to the quality assurance, physical security safeguards contingency, or emergency plans, respectively, without prior NRC review and 21 I
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Uf approval providcd that{the change does not reduce the program 1
effectiveness previously accepted by the NRC. The intent of these sections is to allow the licensee to make timely changes that improve the effectiveness or efficiency of their operations.
These sections parallel the regulatory approach taken in 10 CFR 50.59 as applied to the Final Safety Analysis Report (FSAR). In the past, the NRC has been inconsistent in how it has approached the inspection or review of licensee submittals, including the method for documenting the staff effort and subsequent correspondence with licensees. In order to remove any ambiguity as to the status of these submittals and NRC responses to them, the NRC is modifying its practice to allow for both in-office and on-site inspection of the changes. On-site inspection will continue to be handled by the existing inspection reporting process; however, the allowance for in-office inspection of changes that do not degrade the plan is addressed by Administrative Letter 96-XX.
The changes described in NRC Administrative Letter 96-XX do not impact any existing processes for changes that require prior NRC approval. As described in S50.54 (a) (3) , the licensee must identify changes that reduce the commitments in the program description of the quality assurance plan to the NRC and receive NRC approval' prior to implementation. Such changes are deemed l accepted upon notification from the NRC or 60 days after submittal to the NRC, whichever occurs first. However, the l
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l l licensee must remain in compliance with the regulations governing l the quality assurance program.
Security plan, guard training plan, qualification plan, or emergency plan changes that decrease the effectiveness of the udM C. \
planmustbesubmittedasanamendmentrequestpureimt-tof50.90 for NRC review and approval prior to implementation.
/ualityassurance,physicalsecuritysafeguardscontingency, emergency plan changes submitted under the provision of 550.54 do not clearly st b some cases, the intent of the dresse9 to make a change that does not degrade the plan, but
\j(#)- .
instead appear to solicit the NRC's advice or preliminary review l
{'t i of the acceptability for submitting the change according to 550.54. Questionable submittals under S50.54 should be avoided, h-ro o c any NRC involvement that could be construed as advance approval rather than as an inspection finding addressing the question of post-implementation compliance could cause these actions to be considered as license amendments.
.3 The intent of regulatory prov d 950.54 w-ith reepe:t O -
4e quality assurance, physical security safeguards contingency, and emergency is to allow licensees to make changes that would not result in degradation of a previously accepted plan or compromise the safe operations of a facility without prior NRC i
l review. The changes submitted and the licensee's finding of no L
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2 . . _ _ _ _. ._ _ . _ _ _ . . ._ __ _ _ _ _ _ _
reduction in effectiveness would then be eligible for post-implementation inspection by the NRC.
Subsequent to an inspection of selected changes made according to the provisions of S50.54 to confirm the addressee's determination to implement a change that does not place the nuclear plant at risk for unsafe operation and continues to l
l ensure public health and safety, the NRC will notify the licensees of their continued compliance or noncompliance with 10 CFR Part 50 requirements in these areas. Should the NRC determine that the licensee did not properly characterize a l change pursuant to 550.54, the licensee may be subject to the provisions of 10 CFR Pasq 2 201 and may be issued a Notice of Violation. The NRC will issue an inspection report to cover the l inspections. No change in the fee regulations is necessary to
! assess inspection fees as fees for these inspections would be i
assessed under the existing inspection provisions of 5170.21 i
beginning with the effective date of the FY 1997 final fee rule.
The amounts of the materials licensing " flat" fees were rounded off so that the amounts would be de minimis and the resulting flat fee would be convenient to the user. Fees that are greater than $1,000 but are less than $100,000 are rounded to the nearest $100. Fees that are greater than $100,000 are rounded to the nearest $1,000. Fees under $1,000 are rounded to the nearest $10.
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l v Y l plants (GDPs) located at Paducah, Kentucky,,and at Piketon, Ohio.
The NRC announced its intent to issue the compliance certificates toUSEC[nVSeptember19, 1996; "ci.tal neginet ihsi. 1 FR 49360). The NRC intends to assume regulatory jurisdiction over l the two plants from DOE on March 3, 1997. Because the two plants j have been certified in FY 1997, the NRC is proposing to establish an annual fee of S----- for these two facilities. Since the certifications would be in effect for the last six months of FY i
1997, the NRC would assess one-half of the annual fee or $
to USEC for the last half of FY 1997. USEC would be assessed for l all costs relating to the certificates under 10 CFR Part 170 for the first half of FY 1997.
! As in FY 1996, the NRC would continue to bill annual fees for most materials licenses on the anniversary date of the license (licensees whose annual fees are $100,000 or more will continue to be assessed quarterly). The annual fee assessed will be the fee in effect on the license anniversary date. This proposed rule would apply to those materials licenses in the j following fee categories: 1.C. and 1.D.; 2. A. (2) through 2.C.;
3.A. through 3.P.; 4.A. through 9.D., and 10.B. For annual fee purposes, the anniversary date of the materials license is f considered to be the first day of the month in which the original i
materials license was issued. For example, if the original
[ materials license was issued on June 17 then, for annual fee purposes, the anniversary date of the materials license is June 1 1 28
D.C. Circuit Court of Appeals in Allied Sianal v. NRC, 988 F.2d.
I 146 (D.C. Cir. 1993).
l l VIII. Regulatory Flexibility Analysis l
The NRC is required by the Omnibus Budget Reconciliation Act of 1990 to recover approximately 100 percent of its budget authority through the assessment of user fees. OBRA-90 further ;
j requires that the NRC establish a schedule of charges that fairly l and equitably allocates the aggregate amount of these charges l among licensees.
l l This proposed rule. establishes the schedules of fees that are necessary to implement the Congressional mandate for FY 1997.
The proposed rule results in an increase in the annual fees charged to all licensees, and holders of certificates, registrations, and approvals. The Regulatory Flexibility Analysis, prepared in accordance with 5 U.S.C. 604, is included as Appendix A to this proposed rule. The Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) was signed into law on March 29, 1996. 99e SBREFA requires all Federal agencies to prepare a written compliance guide for each rule for which the agency is required by 5 U.S.C. 604 to prepare a regulatory flexibility analysis. Therefore, in compliance with the law, Attachment 1 to the Regulatory Flexibility Analysis (Appendix ) is the small entity compliance guide for FY 1997.
p /his t/orverd IX. Backfit Analysis The NRC has determined that the backfit rule, 10 CFR 50.109, does not apply to this proposed rule and that a backfit analysis is not required for this proposed rule. The backfit analysis is not required because these proposed amendments do not require the modification of or additions to systems, structures, components, l or the design of a facility or the design approval or
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manufacturing license for a facility or the procedures or !
l organization required to design, construct or operate a facility.
! i List of Subjects 10 CFR Part 170 -- Byproduct material, Import and export licenses, Intergovernmental relations, Non-payment penalties, l
1 Nuclear materials, Nuclear power plants and reactors, Source material, Special nuclear material.
l I 10 CFR Part 171 -- Annual charges, Byproduct material, I Holders of certificates, registrations, approvals, Intergovernmental relations, Non-payment penalties, Nuclear l materials, Nuclear power plants and reactors, Source material, Special nuclear material. l l
For the reasons set out in the preamble and under the
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authority of the Atomic Energy Act of 1954, as amended, and l 5 U.S.C. 553, the NRC is proposing to adopt the following amendments to 10 CFR Parts 170 and 171.
PART 170 -- FE'ES FOR FACILITIES, MATERIALS, IMPORT AND EXPORT LICENSES, AND OTHER REGULATORY SERVICES UNDER THE ATOMIC ENERGY ACT OF 1954, AS AMENDED
- 1. The authority citation for Part 170 continues to read as follows:
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.
i L. 101-576, 104 Stat. 2842, (31 U. S . C. 901).
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} (10 )
- 2. In 170.11, paragraph (a) s _= "4 mad te add
, new sm 1 , n- 3'1 to read as follows:
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. - - .~ -. . . . . - _ . - .- . . . .-
i l
E170.11 Exemotions.
^
r l f$
s_
f f i
i (a))gNv applie=*4^" fumo, 1.conce fccc, r en c'c'r ' F-^" er - I j- ;;; tion f;;; mada.L De regulreQ Ior:
, , , rs N-(11) Materials portable gauge licenses that are amended !
to change only the name of the Radiation Safety Officer.
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- 3. Section 170.20 is revised to read as follows:
5170.20 Averace cost Der professional staff-hour.
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Fees for permits, licenses, amendments, renewals, special projects, Part 55 requalification and replacement examinations and tests, other required reviews, approvals, and inspections under S5170.21 and 170.31 that are based upon the full costs for l
the review or inspection will be calculated using the following applicable professional staff-hour rates:
Reactor Program $131 per hour l (S170.21 Activities)
Nuclear Materials and Nuclear Waste Program $124 per hour (S170.31 Activities)
- 4. In S170.21, the introductory text, Category K, and footnotes 1 and 2 to the table are revised to read as follows:
E170.21 Schedule of fees for oroduction and utilization l facilities, review of standard referenced desian accrovals, j soecial croiects, insoections and imoort and exoort licenses.
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- 7. In 5171.15, paragraphs (a), (b), (c) (1) , (c) (2) and (e) !
are revised to read as follows:
E171.15 Annual Fees: Reactor coeratina licenses.
(a) Each person licensed to operate a power, test, or research reactor shall pay the annual fee for each unit-for which the person holds an operating license at any time during the '
l Federal FY in which the fee is due, except for those test and research reactors exempted in $171.11(a) (1) and (a) (2) .
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(b) The FY 1997_ uniform annual fee for each operating power i
reactor which must be collected by September 30, 1997, is l $2,966,000. This fee has been. determined by adjusting the FY l 1996 annual fee upward'by approximately 8 percent. The FY 1995 l annual fee was comprised of a base annual fee and an additional charge (surcharge). The activities comprising the base FY 1995 l l
l annual fee are as follows: i (1) Power reactor safety and safeguards regulation except l licensing and inspection activities recovered under 10 CFR Part l 170 of this chapter.
l l (2) Research activities directly related to the regulation of power reactors.
(3) Generic activities required largely for NRC to regulate l power reactors, e.g., updating Part 50 of this chapt , or operating the Incident Response Center. g' l '.
(c) The activities comprising the FY 99 surcharge are as follows:
(1) Activities not attributable to an existing NRC licensee
- or class of licensees; e.g., reviews submitted by other i 64 l
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l L - _ .- . _ , _
._- .__ . . . - -. . - - - . . . . - - .~ ._.
e l
l (4) For FY 1997, the maximum annual fee a small entity is I
required to pay is $1,800 for each category applicable to the license (s).
I (d) The FY 1997 annual fees for materials licensees and holders of certificates, registrations or approvals subject to fees under this section are shown below. The FY 1997 annual !
fees, which must be collected by September 30, 1997, have been determined by adjusting upward the FY 1996 annual fees by i
approximately 8 percent. The FY'199 knnual fee was comprised of I a base annual fee and an additiona char (surcharge). The j i
activities comprising the FY 995 surcharge are shojan-for-~~- l convenience in paragraph (e) this hetio . / p , fe' 7
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SCHEDULE OF MATERIALS ANNUAL FEES l
AND FEES FOR GOVERNMENT AGENCIES LICENSED BY NRC (See footnotes at end of table) ]
. Catecorv of materials licenses 2 Annual Fees'8 3 j l
- 1. Special nuclear material:
l j A. (1) Licenses for possession and use of U-235 or plutonium for fuel l fabrication activities.
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l during the period October 1 through March 31 of the FY will be i assessed one-half the annual fee for that FY. New licenses
- issued on or after April 1 of the FY will not be assessed an annual fee for that FY. Thereafter, the full fee is due and payable each subsequent FY. The annual fee will be prorated for licenses for which a termination request or a request for a POL l
has been received on or after October 1 of a FY on the basis of l when'the application for termination or POL is received by the )
NRC provided the licensee permanently ceased licensed activities 1
during the specified period. Licenses for which applications for 1
termination or POL are filed during the period October 1 through l
~
March 31 of the FY are assessed one-half the annual fee for the applicable category (ies) for that FY. Licenses for which j applications for termination or POL are filed on or after April 1 of the FY are assessed the full annual fee for that FY.
Materials licenses transferred to an Agreement State during the i i
FY are considered terminated by the NRC, for annual fee purposes, on the date that the Agreement with cne State becomes effective; therefore, the same proration provisions will apply as if the licenses were terminated.
i 4 J v' A- 1 l
l
- 10. In S171.19, paragraphs (b), (c), and (d) are revised to read as follows:
- E171.19 Payment.
4 89
l l (b) For FYs 1997 and FY 1998, the Commission will adjust the fourth quarterly bill for operating power reactors and certain materials licensees to recover the full amount of the l I
revised annual fee. If the amounts collected in the first three l
\
quarters exceed the amount of the revised annual fee, the l overpayment will be refunded. The NRC will refund any " flat" l materials renewal fees payments received for renewal applications filed in FY 1996, as appropriate. All other licensees, or holders of a certificate, registration, or approval of a QA program will be sent a bill for the full amount of the annual fee upon publication of the final rule or on the anniversary date of the license. Payment is due on the invoice date and interest accrues from the date of the invoice. However, interest will be waived ;
l if payment is received within 30 days from the invoice date.
l (c) For FYs 1997 and 1998, annual fees in the amount of
$100,000 or more and described in the Federal Register notice pursuant to S171.13 must be paid in quarterly installments of 25 percent as billed by the NRC. The quarters begin on October 1, January 1, April 1, and July 1 of each fiscal year.
(d) For FYs 1997 and 1998, annual fees of less than l
I
$100,000 must be paid as billed by the NRC. As established in FY 1996, materials license annual fees that are less than $100,000
! are .
billed on the anniversary of the license. The materials licenseen that are billed on the anniversary date of the license fdf*
'b 90 l
l
- ._ _ - . _ . ~ . . -_ - -. -
l APPENDIX A TO THIS PROPOSED RULE l j l REGULATORY FLEXIBILITY ANALYSIS FOR THE l
l AMENDMENTS TO 10 CFR PART 170 (LICENSE FEES) AND i
! 10 CFR PART 171 (ANNUAL FEES) l l
Backcround. /tY
,g gv1 I.
e1 The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.) establishes as a principle of regulatory practice that l agencies endeavor to fit regulatory and informational requirements, consistent with applicable statutes, to a scale
- commensurate with the businesses, organizations, and government jurisdictions to which they apply. To achieve this principle, the Act requires that agencies consider the impact of their 1
actions on em13 entities. If the agency cannot certify that a rule will not significantly impact a substantial number of small entitles, then a regulatory flexibility analysis is required to examine the impacts on small entities and the alternatives to minimize these impacts.
To assist in considering these impacts under the Regulatory Flexibility Act (RFA), first the NRC adopted size standards for determining which NRC licensees qualify as small entities (50 FR 50241; December 9, 1985). These size standards were clarified on November 6, 1991 (56 FR 56672) . On April 7, 1994 (59 FR 16513),
the Small Business Administration (SBA) issued a final rule 92 1
changing its size standards. The SBA adjusted its receipts-based size standards levels to mitigate the effects of inflation from l 1984 to 1994. On November 30, 1994 (59 FR 61293), the NRC 1 l
published a proposed rule to amend its size standards. After evaluating the two comments received, a final rule that would j revise the NRC's size standards as proposed was developed and approved by the SBA on March 24, 1995. The NRC published the I
final rule revising its size standards on April 11, 1995 (60 FR 18344). The revised standards became effective May 11, 1995.
The revised standards adjusted the NRC receipts-based size l
standards from $3.5 million to $5 million to accommodate I inflation and to conform to the SBA final rule. The NRC also eliminated the separate $1 million size standard for private practice physicians and applied a receipts-based size standard of
$5 million to this class of licensees. This mirrored the revised SBA standard of $5 million for medical practitioners. The NRC I also established a size standard of 500 or fewer employees for business concerns 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 that Y
hold an NRC license. , // jt q#
The NRC used the revised standards in the final FY 1995 ee rulefandproposestocontinuetheiruseinthisFY1997 proposed i rule. The small entity fee categories in 5171.16 (c) of this
/
proposed rule reflect the changes in the NRC's size standards j 93 l
Public Law 104-121, the Contract with America Advancement Act'of'1996 was signed into. law on March 29, 1996. Title III of the law is entitled the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA). The SBREFA has two purposes. The first is to reduce regulatory burdens imposed by Federal agencies-on small businesses, nonprofit organizations and governmental jurisdictions. The second is to provide the Congress with the opportunity to review agency rules before they go into effect.
Under this legislation, the NRC fee rule, published annually, is considered a " major' rule and therefore must be reviewed by Congress'andtheComptrollerGeneralprier4{te Ie becomi % e3 effective. Section 312 of the Act provides that for each rule for which an agency prepared a final regulatory flexibility analysis, the agency shall prepare a guide to assist small entities in complying with the rule. A regulatory flexibility analysis is prepared for the proposed and final NRC fee rules as implemented by 10 CFR Part 170 and 171 of the Commission's regulations. Therefore, in compliance with the law, Attachment 1 to this Regulatory Flexibility Analysis is the small entity compliance guide for FY 1997.
II. Imoact on small entities.
The comments received on the proposed FY 1991-1996 fee rule revisions and the small entity certifications received in response to the final FY 1991-1996 fee rules indicate that NRC 96
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t U. S. Nuclear Regulatory Commission l Small Entity Compliance Guide l l Fiscal Year 1997 l l ATTACHMENT 1 TO APPENDIX A i l 104 r l I
Contents 4. ( EAER Introduction . . . . . . . . . . . . . . . . . . . .1 NRC Definition of Small Entity . . . . . . . . . . .1 l ( NRC Small Entity Fees . . . . . . . . . . . . . . . 2 Instructions for Completing NRC Form.526 . . . . . 3 1 Appendix - Form NRC-526 . . . . . . . . . . . . . . 5 s l i 1 I h 1 i i I i I i 105 l l l l i- -,
the RFA, the NRC has established two tiers of small entity fees. These fees are found in 10 CFR 171.16(c) of the fee regulations. NRC Definition of Small Entity The NRC has defined small entity in consultation with the Small Business Administratioa. The definition is codified in NRC's regulations at 10 CFR 2.810. Under the NRC regulation, small entities are:
- 1. Small business - a for-profit concern that provides service or a concern not engaged in manufacturing with average receipts of $5 million or less over the last 3 completed fiscal years; .
l ce. a lt1 " ' s
- 2. Manufacturing industry - a manufacturi concern j with an average number of 500 or fewer based upon l employment during each pay period for the l preceding 12 calendar months; i
l
- 3. Small organization - a not-for-profit organization l which is independently owned and operated and has j annual gross receipts of $5 million or less; i
- 4. Small governmental jurisdiction - a government of I a city, county, town, township, village, school district or special district with a population of less than 50,000; l
l 5. Small educational institution - a jurisdiction that is not state or publicly supported and has i i
~
500 or fewer employees 2 NRC Small Entity Fees Currently, the NRC has established two tiers of small entity fees for licensees that qualify under the NRC's size standards. These fees are as follows: Small Business Not Encaaed Maximum Annual Fee in Manufacturina and Small Per Licenset,_j Cateaorv Non-For Profit Orcanizations (Gross Annual Receiots)
$350,000 to $5 million $1,800
, Less than $350,000 $400 Manufacturina entities that have an averaae of 500 emolovees or less l l 35 to 500 employees $1,800 Less than 35 employees $400 small Governmental Jurisdictions (Includina oubliclv succorted 1
- 2 An educational institution referred to in the size standards '
I 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, i ..
l l l educational institutions) (Poculation) i
- 20,000 to 50,000 $1,800 j l
l Less than 20,000 $400 l f Educational Institutions that j l l are not State or Publicly l Succorted, and have 500 Emolovees or Less 35 to 500 employees $1,800 Less than 35 employees $400 e To pay a reduced fee, a licensee must certify using NRC Form 526, to rechly whiwhleenclosedwiththebill,TthatitMeetsNRC'ssize standards for a small entity. About 1,3000 licensees certify each year that they qualify as a small entity under the NRC size standards and pay a reduced annual fee. Approximately 900 licensees pay'the small entity fee of $1,800 while 400 licensees p&y the lower-tier small entity fee of $400. Instructions for Comoletion of 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.
i
- b. The licensee's name and address must be entered as they i -4 -
, 1 ! . l I 1 appear on the invoice. Name and/or address changes for i billing purposes must be annotated on the invoice. Correcting the name and/or address on NRC Form 526 or l on the invoice does not constitute a request to amend l the license. I i
- c. Check the appropriate size standard under which the 1
! licensee qualifies as a small entity. Check one box ' only. Note the following: (1) The size standards apply to the licensee, not the l i 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. 1 1 (3) A licensee who is a subsidiary of a large entity does not qualify as a small entity. (4) The owner of the entity, or an official empowered
/ to act on behalf of the entity, must sign and date G
the small entity certification.
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- 3. If the invoice states the " Amount Billed Represents 50%.
Proration," the amount due is not the prorated amount shown on the invoice but rather one-half of the maximum annual fee shown on NRC Form 526 for the size standard under which the licensee qualifies (either $900 or $200) for each category billed.
- 4. A new form is required to be filed with the NRC each year. l Because a licensee's " size," or the size standards, may change from year to year, the invoice reflects the full fee
)
! and a new form must be completed and returned for the fee to l l
1 be reduced to the small entity fee. LICENSEES WILL NOT BE l
. ISSUED A NEW INVOICE FOR THE REDUCED AMOUNT. The completed l
- form, the payment of the appropriate small entity fee, and '
4 the " Payment copy " of the invoice should be mailed to the l address listed on the invoice. ) PLEASE READ THE INSTRUCTIONS ON THE BACK OF NRC FORM 526 l CAREFULLY BEFORE COMPLETING THE FORM. l
- 5. Licensees who do not meet NRC's size standards for a small ;
entity should disregard NRC Form 526, and should send payment for the invoiced amount and the " Payment Copy" of the invoice to the address listed on the invoice. I l t I l l l 1 i ! l t
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lf Y / f^" NUCLEAR REGULATORY COMMISSION b y-q q y 4)fhL g p 0 CFR Parts 170 and 171 / F Es -I [ y RIN: 3150-AF bDlb Revision of Fee Schedules; 100% Fee Recovery, FY 1997 AGENCY: Nuclear Regulatory Commission. ACTION: Proposed rule.
SUMMARY
- The Nuclear Regulatory Commission (NRC) is proposing to amend the licensing, inspection, and annual fees charged to its applicants and licensees. The proposed amendments are necessary to implement the Omnibus Budget Reconciliation Act of 1990 (OBRA-90), which mandates that the NRC recover approximately 100 percent of its budget authority in Fiscal Year (FY) 1997 less amounts appropriated from the Nuclear Waste Fund (NWF). The amount to be recovered for FY 1997 is approximately $462.3 million.
1 DATES: The comment period expires (30 days af ter publication) . Comments received after this date will be considered if it is practical to do so, but the NRC is able to ensure only that comments received on or before this date will be considered. l Because OBRA-90 requires that NRC collect the FY 1997 fees by 1 I i
renewals, and amendments to licenses or approvals. Second, annual fees, established in 10 CFR Part 171 under the authority i of OBRA-90, recover generic and other regulatory costs not 1 recovered through 10 CFR Part 170 fees. I On April 12, 1996 (61 FR 16203), the NRC published its final i :
.f rule establishing the licensing, inspection, and annual fees l j necessary for the NRC to recover approximately 100 percent of its l
6 budget authority for FY 1996, less the appropriation received
\
I
/ ji from the Nuclear Waste Fund. Several changes to the fees assessed for FY 1996 were adopted by the NRC. These changes were q
t } highlighted in the final rule (61 FR 16203; April 12, 1996)
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Proposed Action The NRC is proposing to amend its licensing, inspection, and annual fees to recover approximately 100 percent of its FY 1997 budget authority, including the budget authority for its Office of the Inspector General, less the appropriations received from the NWF and the General Fund. For FY 1997, the NRC's budget authority is $476.8 million, of which $11.0 million has been appropriated from the NWF. In addition, $3.5 million has been appropriated from the General Fund for activities related to commercial vitrification of waste stored at the Department of l Ener Hanford, Washington site. The FY 1997 appropriation W languane states that the $3.5 million appropriated for regulatory L/ 4 l l
- -- ._. - -~
reviews and other activities pertaining to waste stored at the Hanford, Washington site shall be excluded from license fee f, m .y ' ' _. v revenues notwithstanding 42 U.S.C. 2214. Me #"- t g was pw v idecf _X. Ihr 3 :-- - w e-in c M -O L Therefore, OBRA-90 requires that the NRC collect aoprmeimmtely-$462.3 millicr in.J.J 1997
, - t ugh 10 CFR Part 170 licensing and inspection fees an 10 CF
'.' , jP 171 annual fees. The total amount to be recovered fo 997 is the same as the amount to be recovered for FY 1996. The d[N. .g,, NRC estimates that approximately $93 million (20 percent) will be s
' h recovered in FY 1997 from fees assessed under 10 CFR Part 170,= d
/- d bh j he remaining $369.3 million (80 percent) will be recovered through the 10 CFR Part 171 annual fees established for FY 1997. Because the 10 CFR Part 170 and 7
other offsetting adjustments estimate of $93 million for FY 1997
. .. is below the estimate of $120.5 million for FY 1996, this means that the collection distribution will be different from FY 1996.
As a result of this change in the collection distribution, annual fees would increase approximately 8 percent in FY 1997. These changes are more fully explained in Section B. As a result of the increased amount to be recovered for FY 1997 from annual fees and the proposed changes outlined in this section, the FY 1997 annual fees for all licensees have been increased by approximately 8 percent compared to the annual fees assessed for FY 1996. The following examples illustrate changes in annual l fees. 4 5 l
materials licensees whose license anniversary date during FY 1997 falls before the effective date of the final FY 1997 final rule would be billed and continue to pay annual fees at the FY 1996 rate in FY 1997. Those materials licensees whose license anniversary date falls on or after the effective date of the final FY 1997 rule would be billed at the FY 1997 revised rates during the anniversary month of the license and payment would be due on the date of the invoice. A. Amendments to 10 CFR Part 170: Fees for Facilities, Materials, Imoort and Excort Licenses, and Other Reaulatorv l p , The NRC proposes threm amendments to 10 CFR Part 170 These amendments would not change the underlying basis for th regulation -- that fees be assessed to applicants, persons, and licensees for specific identifiable services rendered. The i amendments also comply with the guidance in the Conference ! Committee Report on OBRA-90 that fees assessed under the Independent Offices Appropriation Act (IOAA) recover the full cost to the NRC of identifiable regulatory service gf[ applicant or licensee receives, a
\
MW7 s First, the NRC is proposing to amend S170.t 1cfFf%C b ~ A ommission's fee regulations to add an exemption ision for y t se amendments issued to existing materials por ble gauge
)
k< li enses that would change only the Radiation S ety Officer { 1 (R 0). Th proposed change is consistent wit raft NUREG-1556, V ume 1,kssued October 3 lic comment. No endment fees would be assessed for the amendments t le . ! w f gauge licenses because the dra'ft woA-G-1556, Volumem J1,n , n de/ A commitments from the licensee concerning RSO qualifi lons and if thsse commitments are included in the amend application, then a technical review is not requir e NRC expects the l ! NUREG to ha finalized bcforz th f'inal fee rule becomes
- O 7/
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effective. Second, tha Mor properme that the two professional hourly es established in'FY 1996 in S170.20 be revise on the FY 1997 budget. These proposed rates would be based on the Y 997 direct FTEs and that portion of the FY 1997 budget that either does not constitute direct program support (contractual services costs) or is not recovered through the appropriation from the NWF or the General Fund. These rates are used to determine the Part 170 fees. The NRC is proposing to establish a rate of $131 per hour ($233,330 per direct FTE) for the reactor program. This rate would be applicable to all activities whose fees are based on full cost under S170.21 of the fee regulations. A second rate of $124 per hour ($219,906 per direct FTE) is proposed for the nuclear materials and nuclear waste program. This rate would be applicable to all materials activities whose l fees are based on full cost under S170.31 of the fee regulat [.1 pons. b n N l'I M 4 Q $ /> 0 - The two rates are based on cost center concepts adopted in FY 1995 (60 FR 32225; June 20, 1995) and used for NRC budgeting purposes. In' implementing cost center concepts, all budgeted resources are assigned to cost centers to the extent they can be
-reparately distinguished. These costs include all salaries and
< benefits, contract support, and travel that support each cost I
center activity. Third, the NRC proposes to adjust the current Part 170 licensing and inspection fees in SS170.21 and 170.31 for applicants and licensees to reflect both the changes in the revised hourly rates and the results of the review required by l j the Chief Financial Officers (CFO) Act. To comply with the l requirements of the CFO Act, the NRC has evaluated historical l professional staff hours used to process a licensing action (new license and amendment) for those materials licensees whose fees 8 l \
1 i are based on the average cost method (flat fees). This review also includes new license and amendment applications for import ! and export licenses.
)
Evaluation of the historical data shows that the average l number of professional staff hours needed to complete materials I licensing actions should be increased in some categories and decreased in others to reflect the costs incurred in completing ; the licensing actions. Thus, the revised average professional staff hours reflect the changes in the NRC licensing review program that have occurred since FY 1995. The proposed licensing fees are based on the revised average professional staff hours needed to process the licensing actions multiplied by the proposed nuclear materials professional hourly rate for FY 1997 of $124 per hour. The data for the average number of , I professional staff hours needed to complete licensing actions were last updated in FY 1995 (60 FR 32218; June 20, 1995). For new materials .'icenses, the proposed licensing fees for FY 1997 are increased in approximately 70 percent of the categories, while the proposed fees for matreials amendments would increase in over 60 percent of C..e categories. In addition to the above rule changes, the NRC is implementing a procedural change relating to the handling of ! correspondence submitted by licensees to comply with NRC's f regulations. hawameh - (the NRC;i_n Administrative Letter
~
96 XX - issued January - , 1997 informed reactor licensees that qualit assurance plan feguards contingency plan and emergency plan ; changes submitted to NRC and the licensee's finding no y/
~~'
reduction in effectiveness would bham-be eligible ost- / f implementation inspection. Therefore, such inspections would be subject to the inspection fees in S170.21. This procedural change is being made because current submittals of quality assurance plan, safeguards contingency plan, and emergency plan changes submitted to the NRC do not clearly state, in some cases,
Qh hedju i DYlY
/ -
l the intent of the lice see to make a change that does not degrade the plan, but instead reques the Commission's advice or
/
~
preliminary review o the acceptability for submitti g he 2 change. In order remove any ambiguity as to the status of these submit;tals and spon es them, the NRC is modifying.
% - s pa i s its "ra 7 ge t p a
-_ in- Ice and onsite inspection of cha During the inspection of the plan changes submitted, the NRC will notify the licensees of its continued compliance or noncompliance with NRC requirements in these areas. Should the NRC determine that the licensee did not properly characterize a change, the licensee may be sub;cvL Lv che p uvic,2vus vf 10 CFR gj P rt 2.201 and issued a Notice f Violation. The NRC will issue an inspection report on Form to document these Regional as '
j well as Headquarters in-office spections and the licensee will be billed for the inspections under S170.21 beginning with the effective date of the FY 1997 final fee rule. 4 In summary, the NRC is proposing to (1) revise the two 10 CFR Part 170 hourly rates; (2) revise the licensing (application and amendment) fees assessed under 10 CFR Part 170 in order to comply with the CFO Act's requirement that fees be revised to reflect the u sg g jhe agency ofg roviding the service; (3) g gf chi e7 orj ncpccticar of quali 7 assur ,ce lagsgeggrg j
/g- vuuungency plan and emergency plan changes, ,na 4) aco an "
j e::qtm provision to the regulations exempt cI ments - g to materials portable gauge licenses. B. Amendments to 10 CFR Part 171: Annual Fees for Reactor Operatino Licenses, and Fuel Cycle Licenses and Materials Licenses. Includina Holders of Certificates of Comoliance. Reaistrations, and Ouality Assurance Procram Acorovals and Government Acencies Licensed by NRC. l The NRC proposes five amendments to 10 CFR Part 171. First, l l the NRC proposes to amend 55171.15 and 171.16 to revise the 10
Less NWF -11.0 -11.0 Less General Fund (Hanford Tanks) ---
-3.5 Total Fee Base $462.3 $462.3 Less Part 170 Fees and Other Adjustments 120.5 93.0 T0tal Annual Fee Amount $341.8 $369.3 As shown in Table I, the total amount to be recovered from annual fees in FY 1997 is $27.5M ($369.3-$341.8) or 8 percent higher than the amount that was to be recovered from annual fees in FY 1996. This difference is the net change resulting from a reduction in the expected collections from 10 CFR Part 170 fees and other adjustments. The NRC notes that the reduction in the estimates of 10 CFR Part 170 fees for FY 1997 is primarily in the areas relating to the review of applications for reactor ? operating licenses and the review of standard plant applications.
k 'In addition, for the first time the estimates take into l1 consideration an allowance for bad debt and collections received in th fiscal year as a resu of billings= from a prior fi cal .
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In addition to changes in 10 CFR Part 170 fees and other t I adjustments, the number of licensees to pay fees in FY 1997 has ,' changed compared to FY 1996. For example, the Haddam Neck power i I l reactor has ceased operations and the fuel has been permanently , removed from the reactor; therefore, the utility will pay only a partial annual fee in FY 1997. Also, the amount of the small
/
! l l entity surcharge (difference between annual fee and small entity l fee) increased as the annual fees increased. The changes in the ! l
! number of licensees in the various classes plus the increase in / the small entity surcharge result in an additional increase in ,/ the annual fee per licens_ee_of_ percent. Thus the total /
/
i p-12 w, e w.
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g j' 1 , 1
4 4 The NRC will send a bill to reactors and major fuel cycle l facilities for the amount of the annual fee upon publication of the FY 1997 final rule. For these licensees, payment will be due on the effective date of FY 1997 rule. Those materials licensees whose license anniversary date during FY 1997 falls before the effective date of the final FY 1997 rule would be billed and continue to pay annual fees at the FY 1996 rate in FY 1997. Those materials licensees whose license anniversary date falls on or after the effective date of the final FY 1997 rule would be billed, at the FY 1997 revised rates, during the anniversary month of the license and payment would be due on the date of the invoice. Fourth, the NRC is proposing to amend the proration 1 provisions in S171.17 for reactor and materials licensees. The reactor provision in 5171.17(a) would be revised to reflect the changes in 10 CFR Part 50 relating to the decommissioning of ] power reactors which became effective August 28, 1996 (61 FR l 39278). The materials provision would be amended to recognize that licenses transferred to an Agreement State are effectively terminated by the NRC, lor _ annual fee purposes, on the date that the Agreemen Ith the State becomes effective. O Fifth, 5171.19 is amended to credit the partial payments / made by certain licensees in F 1997 ither toward their total
.. annual fee to be assessed or t b a refunds, if necessary pcate fiscal year referen
~
/
The proposed amendments to 10 CFR Part 171 do not change the underlyi s f or 1DTJFR-Part--171; ehat is, charging a class icensees for NRC costs attributable t :: Of licensees. The proposed changes are consistent with the NRC's F- j 995 final rule indicating that, for the period FY 1996-1999, t ie / expectation is that annual fees would be adjusted by the
- percentage change (plus or minus) to the NRC's budget authority j 14
i adjusted for NRC offsetting receipts and the number of licensees l 1 paying annual fees. ! III. Section-by-Section Analysis The following analysis of those sections that would be amended by this proposed rule provides additional explanatory information. All references are to Title 10, Chapter I, U.S. Code of Federal Pegulations. I i Part 170 Section 170. emptions. 1 pn @&M S S This ct,ien wvuld be I ded to add a new paragraph , indicating that amendments to materials portable gauge licenses e thatchangeonlythqfSobouldbeexemptfromamendmentfees. j i This change is consistent with th recent Business Process / A L/ j l Reengineering (BPR) initiative NUREG-1556, Volume 1, issued ! October 3, 1996, for public comment (61 FR 51729). No amendment
- i i fees would be assessed for the _ amendments to&/?ortable gauge i-1 i
licenses because the' ____tg g&y!!URE_ y gr _SEE, '/clum:~ 1, include (f. v s commitments from the licensee concerning RSO qualifications and if those commitpppts are included in the amendment application 3 thenthere$$NotechnicalreviewconductedbytheNRC. 6 MP nuini ng knowledge of the identity of._.the__ cnevent4SO-through 4 3 , s a 14conca am an dma n t- ie for-the cc,nvenience of th:-imC. This Qs
-t proposed change is based on revised guidance for portable gauge l
13 licensees (approximately 1,200) which is the result of the BPR l l process whereby NRC is now taking a graded, more performance- i based approach for regulating this category of licensees. The NRC expects the NUREG to be finalized before the final fee rule becomes effective. If not, then this proposed change will not be included in the final fee regulation. 15 j
I Section 170.11 Exemptions. This section would be amended to add a new paragraph indicating that amendments to materials portable gauge licenses l issued in accordance with NUREG 1556 that change only the name of I the Radiation Safety Officer (RSO) would be exempt from amendment fees. This change is consist nt with the recent Business Process Redesign (BPR) initiative w -tyy e~ NUREG-1556, Volume 1, issued for - public comment October 3, 1996 (61 FR 51729). ,No amendment fees w Jod be assessed for the amendments i m =J $ 2;;m % 2th- *
~ A to portable gauge licenses because the regulatory program would include commitments from the licensee concerning ;
RSO qualifications and if those commitments are included in the l amendment application then there would be no technical review l conducted by the NRC. This proposed change is based on revised ! guidance for portable gauge licensees (approximately 1,200) which I is the result of the BPR process whereby NRC will be taking a graded, more performance-based approach for regulating this category of licensees. The NRC expects the NUREG to be finalized before the final fee rule becomes effective. If not, then this proposed change will not be included in the final fee regulation. Section 170.20 Average cost per professional staff-hour. l This section would be amended to establish two professional staff-hour rates based on FY 1997 budgeted costs--one for the reactor program and one for the nuclear material and nuclear waste program. Accordingly, the NRC reactor direct staff-hour rate for FY 1997 for all activities whose fees are based on full cost under S170.21 would be $131 per hour, or $233,055 per direct FTE. The NRC nuclear material and nuclear waste direct staff-hour rate for all materials activities whose fees are based on full cost under S170.31 would be $125 per hour, or $222,517 per direct FTE. The rates are based on the FY 1997 direct FTEs and NRC budgeted costs that are not recovered through the 17
_ __ _ _ _ _ - _ _ _ _ _ . _ _ _ - . - - . _ . = _ ____ - _ _ - _ . . _ l. l l approval provided that the change does not reduce the program l 4 l effectiveness previously accepted by the NRC. The intent of I these sections is to allow the licensee to make timely changes that imprnva che effectiveness or efficiency of their operations. i i These sections parallel the regulatory approach taken in O'CFR
)50.59 as applied to the Final Safety Analysis Report (FSAR). In the past, the NRC has been inconsistent in how it has approached l
the inspection or review of licensee submittals, including the l l method for documenting the staff effort and subsequent - l correspondence with licensees. In order to remove any ambiguity as to the status of these submittals and NRC responses to then, j 3 the NRC is modifying its practice to allow for both in-office (AAC/ and -- l /\ on-site inspection of the changes. On-site inspection will continue to be handled by the existing inspection reporting process; however, the allowance for in-office inspection of l changes that do not degrade the plan is addressed by Administrative Letter 96 J ThechangesdescribedinNRCAdministrativeLetter9k do not impact any existing processes for changes that require prior NRC approval. As described in 550.54 (a) (3) , the licensee must identify changes that reduce the commitments in the program description of the quality assurance plan to the NRC and receive NRC approval prior to implementation. Such changes are deemed accepted upon notification from the NRC or 60 days after , submittal to the NRC, whichever occurs first. However, the 22
reduction in effectiveness would then be eligible for post-implementation inspection by the NRC. l l Subsequent to an inspection of selected changes made l l according to the provisions of 550.54 to confirm the addressee's i determination to implement a change that does not place the nuclear plant at risk for unsafe operation and continues to ensure public health and safety, the NRC will notify the licensees of their continued compliance or noncompliance with 10 CFR Part 50 requirements in these areas. Should the NRC determine that the licensee did not properly characterize a change pursuant to S50.54, the licensee may be subject to the provisions of 10 CFR Part 2.201 and may be issued a Notice of Violation. The NRC will issue an inspection report to cover the 1 inspections. No change in the fee regulations is necessary to ass nsp ~'on feea.as fees for these inspections would be Ew . .; a gWPA
.msse(sepqdpp p i n g g g ion provisions of S170.21,Og p J n n~
beginning wiek t e ef fective date of the FY 1997 final fee rulg, ~==- fN {\ The amounts of the materials licensing " flat" fees were rounded off so that the amounts would be de minimis and the resulting flat fee would be convenient to the user. Fees that are greater than $1,000 but are less than $100,000 are rounded to the nearest $100. Fees that are greater than $100,000 are l rounded to the nearest $1,000. Fees under $1,000 are rounded to l the nearest $10. ! 24
-l l
industrial measuring systems, including x-ray fluorescence analyzers. $1,300 l D. All other special nuclear material l licenses, except licenses authorizing special nuclear material in unsealed form in combination that would constitute a critical quantity, as defined in i S150.11 of this chapter, for which I the licensee shall pay the same fees as those for Category 1. A. (2) . -
$3,000 s b un : < ( F?p'0Y \
y ,- . s r"(- t,< ,
. _L4eenm!!s for the operation of a g-r _ .
-urani enrichment facility. $2,600,000 N
- 2. Source material: TGv' /- > ~
c 1
^/
~ y Jr , ~ ,.
'~;7
"' /
A. (1) Licenses for possession and use of - , , source material for refining uranium mill concentrates to uranium hexafluoride. $647,000 (2) Licenses for possession and use of source material in recovery operations such as milling, in-situ leaching, i heap-leaching, ore buying stations, ! 72 l
._. _ . -. . . _~
l 1 l l l l l l l 1 I I l l U. S. Nuclear Regulatory Commission l 1 Small Entity Compliance Guide Fiscal Year 1997 l l 1 r l l ATTACHMENT 1 TO APPENDIX A i 104 l
l (' i Introduction The Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) requires all' Federal agencies to prepare a written guide for each " major" final action as defined by the Act. The C ?>ees t E meets the threshold [ for bM N l considered " major" under the SBREFA. -F i _ rule ! published annually Lv comply with the Omnibus Budget Reconciliation Act of 1990 (OBRA-90) which requires the NRC to N g l j collect approximately 100 percent of its budget authority each _j
\syear through fees. e purpose of this guide is to assist small entities in comp ying with the NRC fee rule. Therefore, in compliance with the law, this small entity compliance guide has been prepared for FY 1997.
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 1997 annual fees assessed under 10 CFR Part 171. 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. The form, along with the appropriate small entity fee, should be returned to the U.S. Nuclear Regulatory Commission, Office of the Controller, Washington, D.C. 20555. NRC Form 526 will accompany the annual fee invoice mailed to each materials licensee on the anniversary date of the license. The NRC, in compliance with the Regulatory Flexibility Act of 1980 (RFA), has established separate annual fees for those l 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 effective May 11, 1995. The small entity fee size standards are found in 10 CFR 2.810 of the NRC's regulations. To comply with
V l l educational institutions) (Poculation) l 20,000 to 50,000 $1,800 Less than 20,000 $400 Educational Institutions that are not State or Publicly l Succorted, and have 500 Emolovees or Less 35 to 500 employees $1,800 i Less than 35 employees $400 yY Topayareducedgee, a li enpee must certify using NRC Form 526, - which is enclosed with the ill, that it meets NRC's size e-~~~ , standards for a small entity. About 1,3000 licensees certify l each year that they qualify as a small entity under the NRC size i standards and pay a reduced annual fee. Approximately 900 licensees pay'the small entity fee of $1,800 while 400 licensees pay the lower-tier small entity fee of $400. Instructions for Comoletion of 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:
l
- a. The license number and invoice number must be entered exactly as they appear on the annual fee invoice.
6
- b. The licensee's name and address must be entered as they
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I l 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 ontheinvoicedoesnotconstitutearequyttoamend the license. N Y^^- * %
& $ML- & '
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- c. Check the appropriate size standard under which the licensee qualifies as a small entity. Check one box only. Note the following:
l (1) The size standards apply to the licensee, not the individual authorized users listed in the license. l I (2) Gross annual receipts as used in the size
/, standards includes all revenue in whatever form i
, g received or accrued from whatever sources, not l i [ solely receipts from licensed activities. . f,'
, (3) A licensee who is a subsidiary of a large entity does not qualify as a small entity.
(4 ) The owner of the entity, or an official empowered gj g
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to act on behalf of the entity, must sign and date _, the small entity certification.
- 3. $
- invoice states the fpn -
Amount Billed.Renrgfents 50% p M M- Q Proration,'ythe amount du is not the prorated amount shown on the invoice but rather one-half of the maximum annual fee
. shown on NRC Form 526 for- the size tandard under which the i
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licensee qualifies er $ 00 or 200)@for each catejo 1 bi11ed[ W { ' h5 W$W6" '$ WCW -
- 4. A new form is required to be filed with the NRC each year.
Because a licensee's " size," or the size standards, may change from year to year, the invoice reflects the full fee and a new form must be completed and returned for the fee to hb l l
be reduced to the small entity fee. LICENSEES WILL NOT BE l- ISSUED A NEW INVOICE FOR THE REDUCED AMOUNT. The completed l= form, the payment of the appropriate small entity fee, and the " Payment copy " of the invoice should be mailed to the l l address listed on the invoice. i I I PLEASE READ THE INSTRUCTIONS ON THE BACK OF NRC FORF 526 l l CAREFULLY BEFORE COMPLETING THE FORM.
- 5. Licensees who do not meet NRC's size standards for a small entity should disregard NRC Form 526, and should send payment for the invoiced amount and the " Payment Copy" of
.the invoice to the address listed on the invoice.
l I j I l l { i i i
l l i ( 50% Proration." This means the amount due from a small entity is not the prorated amount shown on the invoice but rather one-half of the maximum annual fee shown on NRC Form 526 for the size standard un< der which the licensee qualifies resulting in a fee of (either $900 or $200) for each fee category billed instead of the full year fee of $1,800 or 1
$400. l m azog,z ro o ua s s e y put. Ile o u e wo rus n< n' " c n' Y"4
- 4. A new sma entity form is required to be filed with the NRC
,_ each g year. Because a licensee's " size," or the size I standards, may change from year to year, the invoice reflects the full fee and a new form must be completed and returned for the fee to be reduced to the small entity fee.
LICENSEES WILL NOT BE ISSUED A NEW INVOICE FOR THE REDUCED AMOUNT. The completed form, the payment of the appropriate i small entity fee, and the " Payment Copy " of the invoice should be mailed to the addrr~' '4"*=A ^" *ba 4""^4 e. 2 ll. 5 nucL % h,p k q dm+55j L , N ~, L.,m d.. A Se q $c,&< 954s<4, E by ^1 o. c, 3 t s s - 4 s 4 x ed* *Y 5-f .., 3 e p pn, , .
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l l l Distribution: l OC R/F l i OC S/F EDO R/F JHolloway, OC JFunches, OC RScroggins, OC JTurdici, OC/DAF DDandois, OC/DAF GJackson, OC/DAF l TRothschild, OGC l CPaperiello, NMSS CStoiber, OIP EHalman, ADM MLesar, ADM DOCUMENT NAME: g:\ho11oway\97 stream ! T; seeelve e copy of this document, indcate in the box: 'C' = Copy without ettechment/ enclosure *E' = Copy with attachment / enclosure *N" = w- - ey j-ICE OC CJHolloway l OC:DAF l ADM l OGC W l NMSS l k ..nME JTurdici ELHalman TBRothschild CJPaperiello lDATE / /97 / /97 / /97 7.110/97 sq *% / /96 yv i-- 0FFICE OlP OC OC l EDO I I NAME CRStoiber JLFunches RMScroggins LJCallan DATE / /97 / /97 / /97 / /97 0FFICIAL RECORD COPY l ,}}