ML20136J348
| ML20136J348 | |
| Person / Time | |
|---|---|
| Issue date: | 02/07/1997 |
| From: | Turdici J NRC |
| To: | Funches J NRC |
| Shared Package | |
| ML20136J108 | List:
|
| References | |
| FRN-62FR8885, RULE-PR-170, RULE-PR-171 AF55-1-020, AF55-1-20, NUDOCS 9703200090 | |
| Download: ML20136J348 (46) | |
Text
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NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20&W0001 p9q j
....* February 7, 1997 l
NOTE T0: Jesse L. Funches FROM: James Turdici >
SUBJECT:
PROPOSED NOTICE OF RULEMAKING -- 10 CFR PARTS 170 AND 171 100 PERCENT FEE REC 0VERY FOR FY 1997 Attached is a copy of the subject proposed rule annotated with our suggested changes. With these changes, I concur in the proposed rule.
Attachment:
Annotated Proposed Rule O
N N
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l 9703200090 970317 ik_62,RB885 PDR u
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III. Section-by-Section Analysis.
IV. Electronic Accer.a.
V. Environmental Impact: Categorical Exclusion.
VI. Paperwork Reduction Act Statement.
VII. Regulatory Analysis.
l VIII. Regulatory Flexibility Analysis.
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- IX. Backfit Analysis.
( X:t ly .k I. Background 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) administered NWF, for FYs 1991 through 1995 by assessing fees.
OBRA-90 was amended in 1993 to extend the NRC's 100 percent fee recovery requirement through FY 1998, i
j The NRC assesses two types of fees to recover its budget authority. First, license and inspection fees, established in 10 CFR Part 170 under the authority of the Independent Offices Appropriation Act (IOAA), 31 U.S.C. 9701, recover the NRC's costs l of providing individually identifiable services to specific applicants and licensees. Examples of the services provided by the NRC for which these fees are assessed are the review of applications for the issuance of new licenses, approvals or F
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i materials licensees whose license anniversary date during FY 1997 falls before the effecti e date of the-final FY 1997 final rule -
M5bebilled[n c6n[7 5ide" N Ya'y*aMnua N e[s @ the Y $ 96 ' l rate in FY 1997. Those materials licensees whose license anniversary date falls on or after the effective date of the h l M 1997 4ule 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 Exoort Licenses, and Other Reculatory Services.
The NRC proposes three amendments to 10 CFR Part 170. These amendments would not change the underlying basis for the regulation -- that fees be assessed to applicants, persons, and licensees for specific identifiable services rendered. The amendments also comply with the guidance in the Conference Committee Report on OBRA-90 that fees assessed under the Independent Offices Appropriation Act (IOAA) recover the full cost to the NRC of identifiable regulatory services each applicant or licensee receives.
First, the NRC is proposing to amend S170.11 of the Commission's fee regulations to add an exemption provision for those amendments issued to existing materials portable gauge licenses that would change only the Radiation Safety Officer (RSO). This proposed change is consistent with draft NUREG-1556, Volume 1, issued October 3, 1996, for public comment. No amendment fees would be assessed for the amendments to portable
%A Qu /d gauge licenses because the-draft NUREG-1556, Volume 1,g include,( ---
l commitments from the licensee concerning RSO qualifications and I
if those commitments are included in the amendment application, then a technical review is not required. The NRC expects the NUREG to be finalized before the final fee rule becomes 7
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. , o ef fective. Z9 n0 0, Y hen Tlusfra$h%ew d GAany w'// M & ~
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Second, the NRC proposes that the two professional hourly rates established in FY 1996 in S170.20 be revised based on the FY 1997 budget. These proposed rates would be based on the FY 1997 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.
1 A second rate of $124 per hour ($219,906 per direct FTE) is !
proposed for the nuclear materials and nuclear waste program. .
i This rate would be applicable to all materials activities whose '
fees are based on full cost under S170.31 of the fee regulations.
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 separately distinguished. These costs include all salaries and benefits, contract support, and travel that support each cost center activity.
Third, the NRC proposes to adjust the current Part 170 licensing and inspection fees in 55170.21 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 the Chief Financial Officers (CFO) Act.
To comply with the requirements of the CFO Act, the NRC has evaluated historical professional staff hours used to process a licensing action (new license and amendment) for those materials licensees whose fees i
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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 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 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 .
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 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.
In addition to the above rule changes, the NRC is implementing a procedural change relating to the handling of .c a. ,
correspondence submitted by licensees to comply with NRC's p jh$$'
regulations. For example, the(NRC in Administrative Letter 96-XX issued January - , 1997j informed reactor licensees that quality assurance plan, safeguards contingency plan and emergency plan changes submitted to NRC and the licensee's findin@gA of no reduction in effectiveness would then be eligible post- -
4 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, 9
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l the intent of the licensee to make a change that does not degrade ;
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- the plan, but instead requests the Commission's advice or 1 preliminary review of the acceptability for submitting the change. In order to remove any ambiguity as to the status of I these submittals and NRC responses to them, the NRC is modifying l its practice to allow for both in-of fice and onsite inspection of-f[h -- l changes. During the inspection of the plan changes submitted, I the NRC will notify the licensees of.its continued compliance or noncompliance with NRC requirements in these areas. Should the l 1
NRC determine that the licensee did not properly characterize a change, the licensee may be subject to the provisions of 10 CFR 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 under S170.21 beginning with the l effective date of the FY 1997 final fee rule.
1 In summary, the NRC is proposing toI (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 cost to the agency of providing the service; (3) chargeforinspectionsofqualii'yassuranceplan, safeguards --
contingency plan and emergency plan changes; and (4) add 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 Ooeratina Licenses, and Fuel Cvele Licenses and Materials Licenaes. Includina Holders of Certificates of Comoliance.
Recis%;;ations , and Ouality Assurance Procram ADorovals and GovecRTent Acencies Licensed by NRC.
]
i The NRC proposes five amendments to 10 CFR Part 171. First, the NRC proposes to amend SS171.15 and 171.16 to revise the 10 l
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l Less NWF -11.0 -11.0 Less General Fund (Hanford Tanks) ---
-3.5 l- Total Fee Base $462.3 $462.3 l Less Part 170 Fees 1
l and Other. Adjustments 120.5 93.0 l Total Annual Fee Amount $341.8 $369.3 As shown in Table I, the total amount to be recovered from knnual 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 i estimates of 10 CFR Part 170 fees for FY 1997 is primarily in the l areas relating to the review of applications for reactor operating licenses and the review of standard plant applications. f In addition, for the first time the estimates take into consideration an allowance for bad debt j and collections received in the fiscal year as a result of bill ge from a prior fiscal I
. year. b-ll n in ' + Os co / G4r Y'd "-
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nd pecfdJ & bc ev/ cfda &
In addition to changes in 10 CFR PartL170 .s cdfees
-J e aand Q other adjustments, the number of licensees to pay fees in FY 1997 has l changed compared to FY 1996. For example, the Haddam Neck power 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 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 i the annual fee per licensee of percent. Thus the total 12
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i change in the annual fees for FY 1997 compared to FY 1996 is a increase of 8 percent ( percent plus percent).
p $e G-Second, a new annual fee is proposed in S171.16 (dp)(Category for the certificates of compliance issued to the United States Enrichment Corporation (USEC) on November 26, 1996, to j operate the two gaseous diffusion plants (GDPs) located at l Paducah, Kentucky and at Piketon, Ohio. The NRC intends to assume regulatory jurisdiction over the two plants from the U.S.
Department of Energy (DOE) on March 3, 1997.
Third, Footnote 1 of 10 CFR 171.16 (d) would be amended to provide for a waiver of annual fees for FY 1997 for those l
materials licensees, and holders of certificates, registrations, and approvals who either filed for termination of their licenses 1
or approvals or filed for possession only/ storage licenses before l
October 1, 1996, and permanently ceased licensed activities entirely by September 30, 1996. All other licensees and approval j holders who held a license or approval on October 1, 1996, are subject to FY 1997 annual fees. This change is being made in l recognition of the fact that since the final FY 1996 rule was published in April 1996, some licensees have filed requests for
( termination of their licenses or certificates with the NRC.
Other licensees have either called or written to the NRC since the FY 1996 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 requests before the end of the fiscal year on ;
l September 30, 1996. Similar situations existed after the FY 1991-1995 rules were published, and in those cases, the NRC provided an exemption from the requirement that the annual fee is
{ waived only when a license is terminated before October 1 of each fiscal year.
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l The NRC will send a bill to reactors and major fuel cycle !
facilities for the amount of the annual fee upon publication of I the FY 1997 final rule. For these licensees, payment will be due N ,
on the effective date of FY 1997 rule. Those materials licensees whose license anniversary date during FY 1997 falls before the i
- g. effective date of the final FY 1997 rule .Ed d be billed [hiid'i f my continue to pay annual fees at the FY 1996 rate in FY 1997.
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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 f month of the license and payment would be due on the date of the f
invoice.
W Fourth, the NRC is proposing to amend the proration provisions in S171.17 for reactor and materials licensees. The reactor provision in S171.17(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 39278). The materials provision would be amended to recognize it.c r. re ./4 c v cs ru rs w that licenses transferred to an Agreement Statejare e gectively g r y ,,. J terminated by the NRC, for annual fee purposes, on the date that the Agreement with the State becomes effective.
A i i 1 Fifth, S171.19 is amended to credit the partial payments made by certain licensees in FY 1997 either toward their total I annual fee to be assessed or to make refunds, if necessary and j update fiscal year references.
The proposed amendments to 10 CFR Part 171 do not change the underlying basis for 10 CFR Part 171; that is, charging a class of licensees for NRC costs attributable to that class of licensees. The proposed changes are consistent with the NRC's FY 1995 final rule indicating that, for the period FY 1996-1999, the expectation is that annual fees would be adjusted by the l percentage change (plus or minus) to the NRC's budget authority l
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l adjusted for NRC offsetting receipts and the number of licensees paying annual fees. l 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. j Code of Federal Regulations.
Part 170 Section 170.11 Exemptions.
This section would be amended to add a new paragraph indicating that amendments to materials portable sauge licenses j that change only the RSO would be exempt from amendment fees.
This chan,ge is consistent with the recent Business Process Reengineering (BPR) initiative and NUREG-1556, Volume 1, issued October 3, 1996, for public comment (61 FR 51729). No amendment fees would be assessed for the amendments to portable gauge I licenses because the b NUREG 1556, Volume 1,[nYluded 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. j 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 which is the result of the BPR l process whereby NRC vit cct le_,200) new 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.
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l To determine the licensing flat fees for materials licensees and applicants, the NRC uses' historical data to determine the l 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 l
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 l 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 i 1
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.
In a ddition to the above changes, the NRC is implementing a procedural change relating to the handling of correspondence l
submitted by licensees to comply with the NRC's regulations. For Y
example as permitted by the provisions of SSS50.54 (a) (3) ,
h 50.54 (p) (1) , and 50.54 (q) , reactor licensees may make changes to 9/ the quality assurance, physical security safeguards contingency, l9 or emergency plans, respectively, without prior NRC review and ,
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approval provided that the change does not reduce the program 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.
l 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 l 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 l on-site inspection of the changes. On-site inspection will continue to be handled by the existing inspection reporting i' ",
y process; however, the allowance for in-office inspection of M,4.(, - 4 y {g e changes that do not degrade the plan is addressed by g g C [ cr A[^ -
rc ,
p 'g[
Administrative Letter 96-XX.
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V ,)} i-Y} (e r $S^, y' The changes described in NRC Administrative Letter 96-XX do o (4 g sV1 4y'e not impact any existing processes for changes that require prior 6
NRC approval. As described in 550.54 (a) (3) , the licensee must t
l 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 4
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_ _ _ . .m . m. _ _ _ _ _ _ _ . . _ _ . _ _ _ . . ~ . _ . . _ . _ _ . _ _ . . . . _ _ _ _ . _ _ _ _ _ _ . _ _
,flicenseemustremainincompliancewiththeregulationsgoverning the quality assurance program.
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i Security plan, guard training plan, qualification plan, or t
emergency. plan. changes that decrease the effectiveness of the plan must be submitted as an amendment request pursuant to 50.90 for NRC review and approval prior to implementation.
Quality assurance, physical security safeguards contingency, and emergency plan changes submitted under the provision of 550.54 do not clearly state, in some cases, the intent of the
/ R rs15 e & ,
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-addressee to make a change that does not degrade the plan, but instead appear to solicit the NRC's advice or preliminary review l of the acceptability for submitting the change according to l 550.54. Questionable submittals under 550.54 should be avoided, since 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.
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l l The intent of regulatory provisions in 550.54 with respect i
ta) quality assurance, physical security safeguards contingency, and emergency plans is to allow licensees to make changes that l would not result in degradation of a previously accepted plan or l
- compromise the safe operations of a facility without prior NRC review. The changes submitted and the licensee's finding of no l
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l t reduction in effectiveness would then be eligible for post-implementation inspection by the NRC.
1 I
Subsequent to an inspection of selected changes made ,
Rwo according to the provisions of S50.54 to confirm the addieusee'u- i determination to implement a change that does not place the l 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 inspections. No change in the fee regulations is necessary to 7
assess inspection fees as fees for these inspections would be qt dI' assessed under the existing inspection provisions of 5170.21^A 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 I rounded to the nearest $1,000. Fees under $1,000 are rounded to l
i the nearest $10.
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The proposed licensing " flat" fees are applicable to fee 4
categories 1.C and 1.D; 2.B and 2.C; 3.A through 3.P; 4.B through f 9.D, 10.B, 15.A through 15.E and 16. Applications filed on or l
t
_-after the effective date of the final rule would be subject to the fees in this proposed rule. The " flat" fees in S170.31 for,
the revieT of~ imp ~ ort and export licensing applications have increased from FY 1996 as a result of the increase in the hourly \; \
l rate and the results of the biennial review. -
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=> ju,j&f] .Thn Wht c' dw
_ For~those._licenshg , insp W ion, and review fees that are based on full-cost recovery (cost for professional staff hours plus any contractual services), the materials program hourly rate of $124, as shown in S170.20, would apply to those professional staff hours expended on or after the effective date of the final rule.
Part 171 Section 171.15 Annual Fee: Reactor Operating Licenses.
The annual fees in this section would be revised as described below. Paragraphs (a), (b), (c) (1), (c) (2) and (e) would be revised to comply with the requirement of OBRA-90 that the NRC recover approximately 100 percent of its budget for FY 1997, l
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L Paragraph (b) would be revised in its entirety to establish the FY 1997 annual fee for operating power reactors and to change fiscal year references from FY 1996 to FY 1997. The fees would be :?tablished by increasing FY 1996 annual fees (prior to rounding) by 8 percent. .The activities comprising the base FY 1995 annual fee and the FY 1995 additional charge (surcharge) are listed in paragraphs (b) and (c) for convenience purposes.
With respect to Big Rock Point, a smaller, older reactor, the NRC proposes to grant a partial exemption from the FY 1997 annual fees similar to FY 1996 based on a request filed with the NRC in accordance with S171.11.
Each operating power reactor, except Big Rock Point, would pay an annual fee of $2,966,000 in FY 1997.
Paragraph (e) would be revised to show the amount of the FY 1997 annual fee fpr nonpower (test and research) reactors. In FY ny e s e 4 1997, the ee of $57,000 is 8 percent above the FY 1996 level.
The NRC will continue to grant exemptions from the annual fee to Federally-owned and State-owned research and test reactors that meet the exemption criteria specified in S171.11(a) (2) .
Section 171.16 Annual fees: Materials Licensees, Holders of Certificates of Compliance, Holders of Sealed Source and Device Registrations, Holders of Quality Assurance Program Approvals, f
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and Government agencies licensed by the NRC.
l 1 Section 171.16 (c) covers the fees assessed for those licensees that can qualify as small entities under NRC size 4
standards. The NRC will continue to assess two fees for l
licensees that qualify as small entities under the NRC's size l l
standards. In general, licensees with gross annual receipts of
$350,000 to $5 million pay a maximum fee of $1,800. A second or lower-tier small entity fee of $400 is in place fer small entities with gross annual receipts of less than $350,000 and small governmental jurisdictions with a population of less than 20,000. No change in the amount of the small entity fees is l
being proposed because the small entity fees are not based on the budget but are established at a level to reduce the impact of j fees on small entities. The small entity fees are shown in the proposed rule for convenience.
Section 171.16 (d) would be revised to establish the FY 1997 annual fees for materials licensees, including Government i agencies, licensed by the NRC. These fees were determined by increasing the FY 1996 annual fees (prior to rounding) by 8 percent.
In addition, a ahf annual fee is proposed in S171.16 (d) , 4 C' I5- _-
Category J@, for the certificates of Compliance issued to the USEC on November 26, 1996, to operate the two gaseous diffusion l
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I plants (GDPs) located.at Paducah, Kentucky and at Piketon, Ohio.
The NRC announced its intent to issue the compliance certificates to USEC in a September 19, 1996, Federal Register Notice (61 FR 49360). The NRC intends to assume regulatory jurisdiction over-the two plants from DOE on March 3, 1997. Because the two plants have been certified in FY 1997, the NRC is proposing to establish an annual fee of $----- for these two facilities. Since the ,
certifications would be in effect for the last six months of FY 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 l
the first half of FY 1997.
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[ As in FY 1996, the NRC would continue to bill annual fees Y
9 'for most materials licenses on the anniversary date of the
}Tl J )}nJ 7 license (licensees whose annual fees are $100,000 or more will
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4p@lbb-continue to be assessed quarterly). The annual fee assessed will be the fee in effect on the license anniversary date. This pr:;:::drul;__;1dapplytothosematerialslicensesinthe following fee categories: 1.C. and 1.D. ; 2. A. (2) through 2.C.;
3.A. through 3.P.; 4.A. through 9.D., and 10.B. For annual fee purposes, the anniversary date of the materials license is considered to be the first day of the month in which the original materials license was issued. For example, if the original i materials license was issued on June 17 then, for annual fee i- purposes, the anniversary date of the materials license is June 1 e
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l and the licensee would continue to be billed in June of each year for the annual fee in effect on June 1. Materials licensees with anniversary dates in FY 1997 before the effective date of the FY w'll h rny Yfr uhn i Lusch WYL d W l%
1997 final rule would be billedg and continue to pay &nnual fees at the FY 1996 rate in FY 1997. Those materials licensees with license anniversary dates falling on or after the effective date oftheFY1997huTewouldbebilled, at the FY 1997 revised rates, during their anniversary month of their license and payment would be due on the date of the invoice.
New licenses issued during FY 1997 would receive a prorated annual fee in accordance with the current proration provision of S171.17. For example, those new materials licenses issued during the period October 1 through March 31 of,the FY will be assessed Ylg k cN h.//o one-half the annual feej brJ4ht al New materials 116enses i
t r IM7.
..ssued on or after April 1, 1597, will not be assessed an annual fee for FY 1997. Thereafter, the full annual fee is due and payable each subsequent fiscal year on the anniversary date of the license. Beginning June 11, 1996, (the effective date of the FY 1996 final rule), affected materials licensees were billed and will pay the annual fee in effect on the anniversary date of the license. Affected licensees who are not sure of the anniversary date of their materials license should check the original issue l
date of the license.
A materials licensee may pay a reduced annual fee if the 29
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licensee qualifies as a small entity under the NRC's size '
l standards and certifies that it is a small entity using NRC Form l
l 526.
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The amount or range of the FY 1997 annual fees for all materials licensees is summarized as follows:
Materials Licenses Annual Fee Ranaes l Cateoorv of License Annual Fees Part 70 - High $2,595,000 enriched fuel facility Part 70 - Low $1,273,000
- enriched fuel facility ^ -
D Luf' i Part 40 - UF.
$645,600 {fg/
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- conversion facility ,
1 Part 40 - Uranium $22,200 to $61,600 I recovery facilities Part 30 - Byproduct $490 to $23,4001/ l Material Licenses i Part 71 - Trans- $1,000 to $78,500 portion of -
l Radioactive Material f-I l
Part 72 - Independent $281,800 Storage of Spent Nuclear Fuel l l' Excludes the annual fee for a few military " baster" materials licenses of broad-scope issued to Government agencies, which is
$419,500.
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Footnote 1 of 10 CFR 171.16 (d) would be amended to provide a )
waiver of the annual fees for materials licensees, and holders of certificates, registrations, and approvals, who either filed for termination of their licenses or approvals or filed for i
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l i possession only/ storage only licenses before October 1, 1996, and permanently ceased licensed activities entirely by September 30, i 1996. All other licensees and approval holders who held a l license or approval on October 1, 1996, are subject to the FY 1997 annual fees.
1 Section 171.17 Proration.
The NRC is proposing to amend the proration provisions in S171.17 for reactor and materials licenses. Paragraph (a) would l
be amended to reflect the changes in 10 CFR Part 50 relating to '
the decommissioning of power reactors which became effective August 28, 1996 (61 FR 39278). Reactor annual fees would be l prorated based on the requirements of 550.82 (a) (2) that upon docketing of the certifications for permanent cessation of operations and permanent removal of fuel from the reactor vessel or when a final legally effective order to permanently cease operations has come into effect, the 10 CFR Part 50 license no j longer authorizes operation of the reactor or emplacement or retention of fuel into the reactor vessel. Previously the proration of reactor annual fees was based on the date of issuance of the possession only license (POL).
Paragraph (b) would be amended to recognize that materials l a nw licenses transferred to ;we Agreement State are considered terminated by the NRC for annual fee purposes, on the date that the Agreement with the State becomes effective. The State of Massachusetts is expected to become an Agreement State in FY 1997 and approximately 450 licenses will be transferred to the State on the effective date of the Agreement. The NRC would prorate theannualfeesforthoselicense[(sbeingtransferredtothe ___
l State of Massachusetts using the current proration provisions of S171.17(b) whereby the licenses would be considered terminated on the effective date of the Agreement with Massachusetts.
31 l
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~
l f v r } < q lr N mwCI be- r e n 4 h k n c L . k A C! lL%a f<4
_ Clerry /k ) M a pehnu.( me%J d jhy m & .,eet BPT
( tie <kn. kh % W) on 171.19 Payment.
Paragraph (b) would be revised to give credit for partial payments made by certain licensees in FY 1997 toward their FY 1997 annual fees. The NRC anticipates that the first, second,
! and third quarterly payments for FY 1997 will have been made by operating power reactor licensees and some large materials licensees before the final rule becomes effective. Therefore,
, the NRC would credit payments received for those quarterly annual l fee assessments toward the total annual. fee to be assessed. The NRC would adjust the fourth quarterly bill to recover the full j amount of the revised annual fee or to make refunds, as l necessary. Payment of the annual fee is due on the date of the j
1 invoice and interest accrues from the invoice date. However, l - interest will be waived if payment is received within 30 days l from the invoice date.
Paragraph (c) would be revised to update fiscal year !
references.
Suy.g (j) nc. 4 L ^~1
' b " h $ b ' ) " "
't During the past six years many licensees have indicated l
that, althougli they held a valid NRC license authorizing the #"f D'""U possession and use of special nuclear, source, or byproduct I* * '* -
material, they were either not using the material to conduct j operations or had disposed of the material and no longer needed the license. In response, the NRC has consistently stated that annual fees are assessed based on whether a licensee holds a valid NRC license that authorizes possession and use of radioactive material. Whether or not a licensee is actually
- conducting operations using the material is a matter of licensee j discretion. The NRC cannot control whether a licensee elects to
) possess and use radioactive material once it receives a license from the NRC. Therefore, the NRC reemphasizes that the annual
- fee will be assessed based on whether a licensee holds a valid NRC license that authorizes possession and use of radioactive i 32 i
l 4
m , - - - - , . - . - . - . ,, - , -
l l
- S170.11 Exemotions.
l (a) No application fees, license fees, renewal fees or inspection fees shall be required for:
w J" y b r a J m e../s yh> & }.a:& "#
(11)g Mhterials portable gauge licenses thet eteamended- i tochangeonlythenameoftheRadiationSafetyOfficer.19f/J -
ly(onp] m di n M'+ appl y b Ge Awk'r,s4 pn hbh a._,. n a n u %> l
, jg , ,, y f, & w fcu c>s w n.n) tse S /ettar heler , 1 G . tf+. qc}.v; l,'r 1, 1
- 3. Section 170.20 is revised to read as follows: l S170.20 Averace cost per professional staff-hour.
Fees for permits, licenses, amendments, renewals, special projects, Part 55 requalification and replacement examinations and tests, other required reviews, approvals, and inspections under SS170.21 and 170.31 that are based upon the full costs for the review or inspection will be calculated using the following applicable professional staff-hour rates:
Reactor Program $131 per hour (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 I
footnotes 1 and 2 to the table are revised to read as follows:
l S170.21 Schedule of fees for oroduction and utilization facilities, review of standard referenced desian accrovals, soecial croiects, inspections and imoort and execrt licenses.
40 l
l manufacturing and distribution or redistribution of t radiopharmaceuticals, generators, reagent kits and/or l sources and devices containing byproduct material.
This category does not apply to licenses issued to nonprofit educational institutions whose processing or l manuf acturing is exempt under 10 CFR 170.11(a) (4) . )
These licenses are covered by fee Category 3D. I l
\
l Application - New license . . . . . $7,000 l Amendment . . . . . . . . . . . . . $640 I l D. Licenses and approvals issued pursuant to SS32.72, 32.73, and/or 32.74 of this chapter authorizing l
- distribution or redistribution of radiopharmaceuticals, generators, reagent kits and/or sources or devices.not involving processing of byproduct material. This category includes licenses issued /% to rsu nf ,1 nonpro5it 1134 72," 3V4 4,, .( A e 32.?V i ? hoc educational institutions-that-euthorite processing or manufacturing 4 "hich is exempt under 10 CFR 170.11 (a) (4) .
Application - New license . . . . . $1,900 l Amendment . . . . . . . . . . . . . $430 l
E. Licenses for possession and use of byproduct material l
in 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 . . . . . . . . . . . . . . $380 F. Licenses for possession and use of less than 10,000 curies of byproduct material in sealed sources for irradiation of materials in which the source is exposed 48
l, I
B. Licenses for receipt and storage of e
spent fuel at an independent spent s
fuel storage installation (ISFSI). $281,800 .
C. Licenses for possession and use of special nuclear material in sealed h' Y'
( v~ c sources contained in devices used in hI $
i industrial measuring systems, including ,
x-ray fluorescence analyzers. $1,300 D. All-other special nuclear material ;
licenses, except licenses authorizing special nuclear material in unsealed l-form in combination that would constitute i 1
i a critical quantity, as defined in i l
S150.11 of this chapter, for which
)
the licensee shall pay the same fees I as those for Category 1. A. (2) . $3,000 l E. Licenses for the operation of a [gja,I uranium enrichment facility. g th .
)
- 2. Source material:
4 i
A. (1) Licenses for possession and use of
} source material for refining uranium 69
}
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mill concentrates to uranium hexafluoride. $645,600 l
(2) Licenses for possession and use of source material in recovery operations such as milling, in-situ leaching, heap-leaching, ore buying stations, ion exchange facilities and in processing of ores containing source material for
- y extraction of metals other than uranium WP i
or thorium, including licenses authorizing l
the possession of byproduct waste material 1
(tailings) from source material recovery operations, as well as licenses authorizing 1
the possession and maintenance of a facility l in a standby mode.
i Class I facilities' . . . . . . . $61,600 Class II facilities' . . . . . . . $34,800 Other facilities * . . . . . . . $22,200 l-l (3) Licenses that authorize the receipt of byproduct material, as defined in Section 11e. (2) of the Atomic 4
Energy Act, from other persons for possession and i
70
B. Other licenses for possession and use of byproduct material issued pursuant to Part 30 of this chapter for processing or manufacturing of items containing byproduct material for commercial distribution. $5,600 C. Licenses issued pursuant to SS32.72, 32.73, and/or 32.74 of this chapter authorizing the processing or manufacturing and distribution or redistribution of radiopharmaceuticals, 1
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.71<5(dphg d va "" ##b/ 311,20 i ; n, m (.1 ;J~dsd InhLhls s Uh,a fme'u r"f # l' "~m A+
y ,, S c i tu r.' v y b CH sy,f ls, elas je t Gr( ;)f //btfV). Yk-csp hy 4, 0& s-y 3 D .
D. Icens s and approvals issued pursuant to SS32.72, 32.73, and/or 32.74 of this chapter authorizing distribu-tion or redistribution of radiophar-maceuticals, generators, reagent kits and/or sources or devices not involving 72
.. - . - - _ . - -. - - . . . . - . - . - - . - - = - . - - . - _ . . . . .-.
{. . .
y yl,s c k.gny rnc L lo lice m i M el p~v u # h- 2 D '?2 ,.3 L. >f l ,
3 >. .yy s + pro h + edu ed <na su l k kn s whss e. pria ea r.y
. y n ,,u k Is n y Ie f ff */'
' f A ff N0' N"]IN' processing of byproduct material. This
\
category also includes the possession s
- j. and use of source material for shielding authorized pursuant to Part 40 of this l chapter when included on the same license. $4,400 E. Licenses for possession and use of byproduct material in sealed sources for irradiation of materials in which the source is not removed from its shield (self-shielded units). $3,100 F. Licenses for possession and use of less than 10,000 curies of byproduct material in sealed sources for irradiation.of .
materials in which'the source is exposed for irradiation purposes. This category i
also includes underwater irradiators for irradiation of materials in which the source is not exposed for irradiation purposes. $3,800 G. Licenses for possession and use of 10,000 curies or more of byproduct material in sealed sources for 73
, -. ., ~ - . . - . - _ _ . _ - . _ - _. _ _ . _- .. .
l i . . ,
f authorizing decommissioning, decontamination, reclamation, or site restoration activities pursuant to 10 CFR Parts 30, 40, 70, and 72.
- 15. Import and Export licenses N/AU
- 16. Reciprocity N/AF
- 17. Master materials licenses of broad $419,500 scope issued to Government agencies.
- 18. Department of Energy:
A. Certificates of Compliance . . . . . . $1,163,000H' B. Uranium Mill Tailing Radiation Control Act (UMTRCA) activities . . . . . . $1,957,000
, , Ur um Enrichm orporation . . . [
F Annual fees will be assessed based on whether a licensee held a valid license with the NRC authorizing possession and use of radioactive material during the fiscal year. However, the annual fee is waived for those materials licenses and holders of certificates, registrations, and approvals who either filed for 1
- termination of their licenses or approvals or filed for 1
possession only/ storage licenses prior to October 1, 1996, and permanently ceased licensed activities entirely by September 30, 1996. Annual fees for licensees who filed for termination of a j license, downgrade of a license, or for a POL during the fiscal 84
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M' This includes Certificates of Compliance issued to DOE that are not under the Nuclear Waste Fund. !
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! H' N nual fee established because th re are currently pb.M o li ense in this partic fu ar fee category.
g,4
- b 05})
l (e) The activities comprising the FY 1995 surcharge are as m \
j L.. . .J 1 j follows:
)
(1) LLW disposal generic activities; (2) Activities not attributable to an existing NRC licensee !
l j l or classes of licensees; e.g., international cooperative safety l program and international safeguards activities; support for the
, Agreement State program; site decommissioning management plan l l l l
(SDMP) activities and (3) Activities not currently assessed under 10 CFR Part 170 l
L i
licensing and inspection fees 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.
i i i l l 87 1 l
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during the period October 1 through March 31 of the FY will be 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 l annual fee for that FY. Thereafter, the full fee is due and l payable each subsequent FY. The annual fee will be prorated for licenses for which a termination request or a request for a POL i 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 during the specified period. Licenses for which applications for termination or POL are filed during the period October 1 through March 31 of the FY are assessed one-half the annual fee for the applicable category (ies) for that FY. Licenses for which applications for termination or POL are filed on or after April 1 of the FY are assessed'the full annual fee for that FY.
g nrV Materials licenses transferred to an Agreement State during the l FY are considered terminated by the NRC, for annual fee purposes, on the date that the Agreement with the State becomes effective; therefore, the same proration provisions will apply as if the ;
i licenses were terminated.
- 10. In S171.19, paragraphs (b), (c), and (d) are revised to l
read as follows:
l S171.19 Payment.
g) , * ****
i gpf 83
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4.
p^ !
1 9171.19 Paymen (a) Method f payment, Fee pay- l made by check, draft, j ments shall money order or electronic fund transfer ( 6M made payable to the U.S. Nuclear Reg- i j
l ulatory Commission. Federal agencies l i may also make payment by either l i Standard Form 8F-1081 (Voucher and l Schedule of Withdrawals and Credita) l or by the On-line Payment and Collec-tion System (OPAC's). Where specific t
payment instructions are provided on
- the bills to applicants or licensees, payment should be made accordingly, e.g., bills of 36,000 or more will nor-mally indicate payment by electrade Assnesensfer, s AC > f( [ FT l
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l
(b) For FYs 1997 and FY 1998, the Commission will adjust the fourth quarterly bill for operating power reactors and l certain materials licensees to recover the full amount of the j revised annual fee. If the amounts collected in the first three quarters exceed the amount of the revised annual fee, the overpayment will be refunded. The NRC will refund any a fl at" materi al s-rencwel fcca p ymenus tevelved for rcne::al applications ha in FY 15967-as-appropr4ete. All other licensees, or holders l 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 if payment is received within 30 days from the invoice date.
(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 l
percent as billed by the NRC. The quarters begin on October 1, j January 1, April 1, and July 1 of each fiscal year.
l , (d) For FYs 1997 and 1998, annual fees of less than i
l $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 , ft}
are billed on the anniversary of the license. The materials f licensees that are billed on the anniversary date of the license 90
._ _ _ _ . _ _ _ _ . _ . . _ _ _ _ _ . _ . _ . _ _ _ _ . . _ _ _ _ _ _ _ _ _ _ _ . _ _ _ ~ - . . . . _ _ _ . _ _ . . _ _ ._ _
are those covered by fee categories 1.C. and 1.D.; 2. A. (2) through 2.C.; 3.A. through 3.P.; 4.B. through 9.D.; and 10.B.
For annual fee purposes, the anniversary date of the license is considered to be the first day of the month in which the original license was issued by the NRC. Beginning June 11, 1996, the effective date of the FY 1996 final rule, licensees that are billed on the license' anniversary date will be assessed the annual fee in effect on the anniversary date of the license. IhJc/f A.Na.I4 l l 1 l
i Dated at Rockville, Maryland, this day of ,
1997.
i For the Nuclear Regulatory Commission. )
L. Joseph Callan, Executive Director for Operations.
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i 91
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i $a ./ (. 7 e g p/
?
l Licenses subject to the annual fee that are terminated during the fiscal year l but prior to the anniversary month of the license will be billed upon j termination for the fee in effect at the time of billing. New licenses subject to the annual fee will be billed in the month the license is issued or in the next available monthly billing, for the fee in effect on the anniversary date, and thereafter annual fees will be assessed in the anniversary month.
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changing _its size standards. The SBA adjusted its receipts-based size standards levels to mitigate the effects of inflation from 1984 to 1994. On November 30, 1994 (59 FR 61293), the NRC published a proposed rule to amend its size standards. After evaluating the two comments received, a final rule that would 1
revise the NRC's size standards as proposed was developed and i l approved by the SBA on March 24, 1995. The NRC published the l final rule revising its size standards on April 11, 1995 (60 FR I 18344). The revised standards became effective May 11, 1995.
The revised standards adjusted the NRC receipts-based size i standards from $3.5 million to $5 million to accommodate inflation and to conform to the SBA final rule.
1 l The NRC also )
! eliminated the separate $1 million size standard for private
! practice physicians and applied a receipts-based size standard of l
$5 million to this class of licensees. This mirrored the revised i SBA standard of $5 million for medical practitioners. The NRC 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 hold an NRC license, f y't 99b p/
The NRC used the revised standards in the final FY 1995j fee ruld and proposes to continue their use in this FY 1997 proposed rule. The small entity. fee categories in S171.16 (c) of this proposed rule reflect the changes in the NRC's size standards i
i 93 i
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_ _ .. _ _ . _ .m- _ _ _ _ _ _ _ _ . . _ . _ _ _ . . . _ . _ . _ . _ . .-- _ _ . _ _ . _ _ _ _ _ _ _. . _ - - _.
4 4
operate. i To alleviate the continuing significant impact of the annual )
fees on a substantial number of small entities, the NRC-considered alternatives, in accordance with the RFA. These alternatives were evaluated in the FY 1991 rule (56 FR 31472; July 10, 1991) in the FY 1992 rule (57 FR 32691; July 23, 1992),
in the FY 1993 rule (58 FR 38666; July 20, 1993); in the FY 1994 rule (59 FR 36895; July 20, 1 94) and in the FY 1995 rule (60 FR gbi f }i '5 % % ll ?>
i 32218; June 20, 1995)(A The alternatives cons,idered by the NRC can be summarized as follows.
Base fees on some measure of the amount of l radioactivity possessed by the licensee (e.g., number
- of sources). l i
1 -
Base fees on the frequency of use of the licensed radioactive material (e.g., volume of patients).
Base fees on the NRC size standards for small entities.
l t
The NRC has reexamined the FY 1991-1996 evaluations of the these alternatives. Based on that reexamination, the NRC continues to believe that establishment of a maximum fee for f small entities is the most appropriate option to reduce the
! impact on small entities.
100
. _ . _ . . _ _ _ _ _ _. _ _ _ _ _ _ _ _ _ . _ . _ _ . _ _ _ _ . _ _ . . ~ . _ _ . . . _ _ . _ _ . _
- 0 f~1;,9 s The NRC established, and is continuing for FY 1997, a maximum annual fee for small entities. The RFA and its implementing guidance do not provide specific guidelines on what
, constitutes a significant economic impact on a small entity.
l Therefore, the NRC has no benchmark to assist it in determining the amount or the percent of gross receipts that should be i
charged to a small entity. For FY 1997, the NRC will rely on the l
analysis previously completed that established a maximum annual-fee for a small entity and the amount of costs that must be recovered from other NRC licensees as a result of establishing the maximum annual fees.
i The NRC continues to believe that the 10 CFR Part 170 l
license fees (application and amendment), or any adjustments to these licensing fees during the past year, do not have a l significant impact on small entities. In issuing this proposed rule for FY 1997, the NRC concludes that the 10 CFR Part 170 ;
materials license fees do not have a significant impact on a substantial number of small entities and that the 10 CFR Part 171 l maximum annual small entity fee of $1,800 be continued.
i l
By maintaining the maximum annual fee for small entities at l $1,800, the annual fee for many small entities is reduced while at the same time materials licensees, including small entities, j pay for most of the FY 1997 costs attributable to them. The i
- costs not recovered from small entities are allocated to other
+
101
- - . . . . - - - -. . _ . = . _ . - _ _ - - - ._ . - - - .
i* .
l materials licensees and to operating power reactors. However, 7
the amount that must be recovered from other licensees as a , ;
result of maintaining the maximum annual fee is not expected to l
increase. Therefore, the NRC is continuing, for FY 1997, the l l
maximum annual fee (base annual fee plus surcharge) for certain I
! small entities at $1,800 for each fee category covered by each license issued to a small entity.
1
- While reducing the impact on many small entities, the i
Commission agrees that the maximum annual fee of $1,800 for small l entities,.when added to the Part 170 license fees, may continue l
to have a significant impact on materials licensees with annual gross receipts in the thousands of dollars. Therefore, as in FY ,
j 1992-1996, the NRC is proposing to continue the lower-tier small entity annual fee of $400 for small entities with relatively low
! gross annual receipts. The lower-tier small entity fee of $400 l
l also applies to manufacturing concerns, and educational l institutions not State or publicly supported, with less than 35 employees. This lower-tier small entity fee was first l
l established in the final rule published in the Federal Register on April 17, 1992 (57 FR 13625) and now includes manufacturing companies with a relatively small number of employees.
III. Summarv.
4
- 3. The NRC has determined the 10 CFR Part 171 annual fees e
102
. . ~ . . , . . , . . - - - . . - . . _ . . _ - - . - . . - . . - . . . . - - . - . . - . - . . . . . . . . - . - - . _ . - - - .
t I
1 U. S. Nuclear Regulatory Commission Small Entity Compliance Guide Fiscal Year 1997 ATTACHMENT 1 TO APPENDIX A i
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=, g.--4-- w- - -~.y y.-- ,-4+
l Introduction The Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) requires all- Federal agencies to prepare a written guide l for each " major" final action as defined by the Act. The NRC, at this time, has one rule that meets the thresholds for being considered " major" under the SBREFA. This is the 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 l year through fees. The purpose of this guide is to assist small i j entities in complying with the NRC fee rule. Therefore, in compliance with the law, this small entity compliance guide has been prepared for FY 1997.
l This guide is designed to aid NRC materials licensees. The information provided in this guide may be used by licensees to l determine whether they qualify as a small ent.ity under NRC regulations and are therefore eligible to pay reduced FY 1997 annual fees assessed under 10 CFR Part 171. Licensees who meet l NRC's size standards for a small entity must complete NRC Form 526 in order tio qualify for the reduced annual feed They forinN along with the appropriate small entity fee c4L- : 8 should be returned /
To~the If.S.~Nuclea((R gulatory Commissio'rDkf flue _ghthe -
@ t-rclier, Washington, 4 C NkC Fcrm h26 will acconIp~a'n'y
- the annual fee invoice mailed to each materi la licensee,cn thz /
-anni m ary cate or ene h nsa. -
l
% < J p:7 ed Wy C,b '"
l 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 effective May 11, 1995. The small entity fee size standards are i
found in 10 CFR 2.810 of the NRC's regulations. To comply with q l_ , e m e p ~ atJ Acce d Rece M k S h L p.e . q w . cr_,;-y 9s ys~/y l Sb Lowk MC b3/P N/E 7
the RFA, the NRC has established two tiers of small entity fees.
l These fees are found in 10 CFR 171.16 (c) of the fee regulations. I l
l NRC Definition of Small Entity l l
l The NRC has defined small entity in consultation with the Small Business Administration. 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/'Iervice or a concern not engaged in --
manufacturing with average! ( rereceipts v of $5 million -
4 or less over the last 3 completed fiscal years;
- 2. Manufacturing industry - a manufacturing concern l en t h y te 5 ;
with an average number of 500 or feweg based upon - I employment during each pay period for the preceding 12 calendar months;
- 3. Small organization - a not-for-profit organization whic'h is independently owned and operated and has annual gross receipts of $5 million or less;
- 4. Small governmental jurisdiction - a government of a city, county, town, township, village, school district or special district with a population of less than 50,000;
,, j/ c,/a a /,m.J ;,u l.k 4%
y pye,1.a h, a j u l> f y,%3 anu //
- 5. Small educational institution -A jurisdiction, f)? " /w' +"I cc en c that is not state or publicly supported and has i
i l
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2 500 or fewer employees l
l l !
l NRC Small Entity Fees l
Currently, the NRC has established two tiers of small entity fees for licenJees that qualify under the NRC's size. standards. These fees are as follows:
l l Small Business Not Enaaced Maximum Annual Fee in Manufacturina and Small Per Licensed Cateaorv ) %
dbhorProfitOrcanizations I
(Gross Annual Receiets)
$350,000 to $5 million $1,800 i
l Less than $350,000 $400 Manufacturina entities that have an averaae of 500 emolovees or less I
! -35 to 500 employees $1,800 Less than 35 employees $400 l Small Governmental Jurisdictions (Includina oublicly succorted 2
Jul 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 2 programs are available to the public.
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educational institutions) I (Pooulation) I z .
l 20,000 to 50,000 $1,800 Less than 20,000 $400 l Educational Institutions that are not State or ou bliclv Suonorted, and have 500 Emolovees or Less 35 to 500 employees $1,800 Less than 35 employees $400 l
l finl k V {
To pay.a reducedj fee, a licensee must certify using NRC. Form 526, --
]
which is enclosed with the bill, that it meets NRC's size .
standards for a small entity. About 1,300( licensees certify -e each.yearthattheyqualifyasasmallent)ityundertheNRC' size i
l standards and pay a reduced annual fee. Approximately-900 '
l licensees pay'the small entity _ fee of $1,800 while 400 licensees pay the lower-tier small entity fee of $400. I t
Instructior:o for Coflbletion of NRC Form 526
- 1. File a separate NRC Form 526 for each annual fee invoice received.
l
- 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.
1 i
- b. The licensee's name and address must be entered as they
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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 on the invoice does not constitute a request to amend the license.
l
- c. Check the appropriate size standard under which the
! licensee qualifies as a small entity. Check one box only. Note the following:
(1) The size standards apply to the licensee, not the individual authorized users listed in the license.
(2) Gross annual receipts as used in the size .
standards includes all revenue in whatever form received or accrued from whatever sources, not ;
solely receipts from licensed activities.
(3) A licensee who is a subsidiary of a large entity l does not qualify as a small entity.
l l
(4) The owner of the entity, or an official empowered 1 to act on behalf of the entity, must sign and date p the small entity certification.
- 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 $r00 or $200) foreachfbategory 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 l change from year to year, the invoice reflects the full fee and a new form must be completed and returned for the fee to 1
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be reduced to the small entity fee. LICENSEES WILL NOT BE I ISSUED A NEW. INVOICE FOR THE REDUCED AMOUNT. The completed form, the payment of the appropriate small entity fee, and the " Payment copy " of the invoice should be mailed to the address listed on the invoice.
PLEASE READ THE INSTRUCTIONS ON THE BACK OF NRC FORM 526 CAREFULLY.BEFORE COMPLETING THE FORM.
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' Licensees who do not meet NRC's size standards for a small 5.
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.
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