[Federal Register Volume 68, Number 117 (Wednesday, June 18, 2003)]
[Rules and Regulations]
[Pages 36714-36741]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14960]
[[Page 36713]]
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Part IV
Nuclear Regulatory Commission
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10 CFR Parts 170 and 171
Revision of Fee Schedules; Fee Recovery for FY 2003; Final Rule
Federal Register / Vol. 68, No. 117 / Wednesday, June 18, 2003 /
Rules and Regulations
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NUCLEAR REGULATORY COMMISSION
10 CFR Parts 170 and 171
RIN 3150-AH14
Revision of Fee Schedules; Fee Recovery for FY 2003
AGENCY: Nuclear Regulatory Commission.
ACTION: Final rule.
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SUMMARY: The Nuclear Regulatory Commission (NRC) is amending the
licensing, inspection, and annual fees charged to its applicants and
licensees. The amendments are necessary to implement the Omnibus Budget
Reconciliation Act of 1990 (OBRA-90), as amended, which requires that
the NRC recover approximately 94 percent of its budget authority in
fiscal year (FY) 2003, less the amounts appropriated from the Nuclear
Waste Fund (NWF). The amount to be recovered for FY 2003 is
approximately $526.3 million.
EFFECTIVE DATE: August 18, 2003.
ADDRESSES: The comments received and the agency work papers that
support these final changes to 10 CFR Parts 170 and 171 are available
electronically at the NRC's Public Electronic Reading Room on the
Internet at http://www.nrc.gov/reading-rm/adams.html. From this site,
the public can gain entry into the NRC's Agencywide Documents Access
and Management System (ADAMS), which provides text and image files of
NRC's public documents. For more information, contact the NRC Public
Document Room (PDR) Reference staff at 1-800-397-4209, or 301-415-4737,
or by email to [email protected]. If you do not have access to ADAMS or if
there are problems in accessing the documents located in ADAMS, contact
the PDR.
Comments received may also be viewed via the NRC's interactive
rulemaking Web site (http://ruleforum.llnl.gov). This site provides the
ability to upload comments as files (any format), if your web browser
supports that function. For information about the interactive
rulemaking site, contact Ms. Carol Gallagher, 301-415-5905; e-mail
[email protected].
For a period of 90 days after the effective date of this final
rule, the work papers may also be examined at the NRC Public Document
Room, Room O-1F22, One White Flint North, 11555 Rockville Pike,
Rockville, MD 20852-2738.
FOR FURTHER INFORMATION CONTACT: Ann Norris, telephone 301-415-7807; or
Tammy Croote, telephone 301-415-6041; Office of the Chief Financial
Officer, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001.
SUPPLEMENTARY INFORMATION:
I. Background
II. Response to Comments
III. Final Action
IV. Voluntary Consensus Standards
V. Environmental Impact: Categorical Exclusion
VI. Paperwork Reduction Act Statement
VII. Regulatory Analysis
VIII. Regulatory Flexibility Analysis
IX. Backfit Analysis
X. Small Business Regulatory Enforcement Fairness Act
I. Background
For FYs 1991 through 2000, OBRA-90, as amended, required that the
NRC recover approximately 100 percent of its budget authority, less the
amount appropriated from the U.S. Department of Energy (DOE)
administered NWF, by assessing fees. To address fairness and equity
concerns raised by the NRC related to charging NRC license holders for
agency budgeted costs that do not provide a direct benefit to the
licensee, the FY 2001 Energy and Water Development Appropriations Act
amended OBRA-90 to decrease the NRC's fee recovery amount by 2 percent
per year beginning in FY 2001, until the fee recovery amount is 90
percent in FY 2005. As a result, the NRC is required to recover
approximately 94 percent of its FY 2003 budget authority, less the
amounts appropriated from the NWF, through fees. In the Energy and
Water Development Appropriation Act, 2003, contained in the
Consolidated Appropriations Resolution, 2003 (Pub. L. 108-7), Congress
appropriated $584.6 million to the NRC for FY 2003. This sum includes
$24.7 million appropriated from the NWF. The total amount NRC is
required to recover in fees for FY 2003 is approximately $526.3
million.
The NRC assesses two types of fees to meet the requirements of
OBRA-90, as amended. First, license and inspection fees, established in
10 CFR Part 170 under the authority of the Independent Offices
Appropriation Act of 1952 (IOAA), 31 U.S.C. 9701, recover the NRC's
costs of providing special benefits to identifiable applicants and
licensees. Examples of the services provided by the NRC for which these
fees are assessed are the review of applications for new licenses, and
for certain types of existing licenses, the review of renewal
applications, the review of amendment requests, and inspections.
Second, annual fees established in 10 CFR Part 171 under the authority
of OBRA-90, recover generic and other regulatory costs not otherwise
recovered through 10 CFR Part 170 fees.
II. Response to Comments
The NRC published the FY 2003 proposed fee rule on April 3, 2003
(68 FR 16374) to solicit public comment on its proposed revisions to 10
CFR Parts 170 and 171. The NRC received 26 comments dated on or before
the close of the comment period (May 5, 2003) and several additional
comments thereafter, for a total of 32 comments that were considered in
this fee rulemaking. The comments have been grouped by issues, and are
addressed in a collective response.
A. Legal Issues
Information Provided by NRC in Support of Proposed Rule
Comment. Several commenters urged the NRC to provide licensees and
the public with a more detailed explanation of the activities and
associated costs that form the basis for NRC's fees. Some commenters
stated that the NRC should provide specific accounting of the major
elements that comprise the annual fee, including detailed information
on the outstanding major contracts, their purpose, and their costs.
Other commenters indicated that this information should also be
available for part 170 fees, claiming it is difficult to understand
exactly what is included in the hourly rate. One of these commenters
also stated that more detailed information on the total costs
associated with each component of reactor regulation and all other
generic costs would allow stakeholders to provide more effective
feedback on the efficiency of NRC's regulatory activities and would
propel the Commission to exercise its authority to promote increased
fiscal responsibility.
Several commenters raised concerns that the NRC could not
specifically identify where resources are being applied, as the agency
identified approximately 76 percent of the NRC's budget for recovery
under part 171 and only 24 percent under the discrete fee provisions of
part 170. These commenters stated this meant that the NRC could only
identify 24 percent of its expenditures as directly supporting the
licensees, and that neither NRC nor industry management can determine
whether applicable resources are being applied to appropriate
priorities in such a case. These commenters further stated that the
aggregation of a substantial portion of non-discrete expenditures to be
recovered through part 171 fees makes it virtually impossible for
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licensees to understand and comment on the appropriateness of these
expenditures, and that the NRC should revise parts 170 and 171 to
discretely allocate generic program costs to individual dockets in
order to improve the visibility of management oversight and associated
accountability of these programs.
Response. Consistent with the requirements of OBRA-90, as amended,
the purpose of this rulemaking is to establish fees necessary to
recover 94 percent of the NRC's FY 2003 budget authority, less the
amounts appropriated from the NWF, from the various classes of
licensees. The efficiencies of NRC's regulatory activities and the
manner in which NRC carries out its fiscal responsibilities are outside
the scope of this rulemaking. The proposed rule described the types of
activities included in the proposed fees and explained how the fees
were calculated to recover the budgeted costs for those activities.
Therefore, the NRC believes that ample information was available on
which to base constructive comments on the proposed revisions to parts
170 and 171 and that its fee schedule development is a transparent
process.
In addition to the information provided in the proposed rule, the
supporting work papers were available for public examination in the
NRC's Agencywide Documents Access and Management System (ADAMS) and,
during the 30-day comment period, in the NRC Public Document Room at
One White Flint North, 11555 Rockville Pike, Rockville, MD. The work
papers show the total budgeted full time equivalent (FTE) and contract
costs at the planned accomplishment level for each agency activity. The
work papers also include extensive information detailing the allocation
of the budgeted costs for each planned accomplishment within each
program of each strategic arena to the various classes of licenses, as
well as information on categories of costs included in the hourly rate.
The NRC has also made available in the Public Document Room NUREG-
1100, Volume 18, ``Budget Estimates and Performance Plan, Fiscal Year
2003'' (February 2002), which discusses the NRC's budget for FY 2003,
including the activities to be performed in each strategic arena. This
document is also available on the NRC public Web site at http://www.nrc.gov/reading-rm.html. The extensive information available to the
public meets all legal requirements and the NRC believes it has
provided the public with sufficient information on which to base their
comments on the proposed fee rule. Additionally, the contacts listed in
the proposed fee rule were available during the public comment period
to answer any questions that commenters had on the development of the
proposed fees. No inquiries were received about the fee development
process.
With regard to the comments that expressed concern that too much of
the NRC's budget was designated for recovery under part 171, the NRC
notes that it has taken action to increase the amount recovered under
part 170, consistent with existing Federal law and policy. For example,
in FY 1998 the agency began charging part 170 fees for resident
inspectors and in FY 1999 the agency started charging part 170 fees for
project manager activities associated with oversight of the assigned
license or plant. Additionally, in FY 2003 the NRC amended its
regulations to allow the agency to recover costs associated with
contested hearings on licensing actions involving U.S. Government
national security initiatives through part 170 fees assessed to the
affected applicant or licensee (67 FR 64033; October 17, 2002).
Included under this provision are activities involving the fabrication
and utilization of mixed oxide fuel (MOX). The NRC assesses part 170
fees under the IOAA, and consistent with OMB Circular A-25, to recover
the costs incurred from each identifiable recipient for special
benefits derived from Federal activities beyond those received by the
general public. Generic costs that do not provide special benefits to
identifiable recipients can not be recovered under part 170.
The NRC clearly sets forth the components of these generic costs in
its workpapers and how those costs are recovered through annual fees.
B. Specific Part 170 Issues
1. Increase in Hourly Rates
Comment. Several commenters raised concerns with the proposed
increase to $158 for the hourly rate for the materials program. One
commenter stated that there seems to be no reason that the hourly rate
for the materials program is higher than the hourly rate for reactors.
This commenter also thought that the rates are out of line with rates
paid by industry for safety professionals and managers.
Response. The NRC's hourly rates are based on budgeted costs and
must be established at the revised levels each year to meet the fee
recovery requirements. The hourly rates include not only average
salaries and benefits for professional employees, but also a prorated
share of overhead costs, such as supervisory, secretarial, and
information technology support, as well as general and administrative
costs, such as rent, utilities, supplies, and payroll and human
resources staffs. These hourly rates are not developed in relation to
one another but are based on budgeted costs for the reactors program
and the materials program. Since the budgeted costs are different for
each program, different rates result. These rates do not necessarily
track with private sector rates, nor should they be used as a benchmark
for industry standards. Instead, these rates reflect the budgeted costs
of the reactors and materials programs.
A major reason for the four percent increase in the hourly rate for
the materials program is the salary and benefits increase resulting
primarily from the Government-wide pay raise. While salary and benefits
also increase similarly for the reactor program, the increase is offset
by a reduction in the average overhead cost per direct FTE for the
reactor program. The hourly rates, coupled with the direct contract
costs, recover through part 170 fees the full cost to the NRC of
providing special services to specifically identifiable beneficiaries
as provided by the IOAA. The revised hourly rates plus direct contract
costs recover, through part 171 annual fees, the required amount of
NRC's budgeted costs for activities not recovered through part 170
fees, as mandated by OBRA-90, as amended. The NRC is establishing in
this final rule the revised hourly rates necessary to accomplish the
fee recovery requirements. For part 170 activities, the rates will be
assessed for professional staff time expended on or after the effective
date of this final rule.
2. Project Manager Billing Issues
Comment. Several commenters expressed concern with the increase in
charges for Project Manager (PM) time to uranium recovery licensees and
other materials licensees. Some of these commenters would like
clarification of the status of the NRC's Office of Nuclear Materials
Safety and Safeguards (NMSS) policy change that was implemented in July
2001, which states that a PM's costs are not billed to the licensee as
part 170 fees if that PM spends 75 percent or less of his/her time in
any two-week period on duties to support that licensee. Other
commenters said that after an initial drop in part 170 charges for PM
duties to uranium recovery licensees, these charges had increased
recently even though duties related to the sites had not changed, and
stated that PM time should not be charged to part 170 fees, whenever
possible. Some commenters thought the Commission should reduce the
impact of the hourly rate increase on
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uranium recovery licensees by doing everything possible to reduce the
amount of time spent by staff working on licensing issues related to
uranium recovery licenses. They suggested that this could be
accomplished through the streamlining of the regulatory process,
including delegating regulation of in-situ leach wellfields to the
States through Memoranda of Understanding and more reliance on Safety
and Environmental Review Panels and performance based-licensing.
Response. NMSS modified its policy for project management fee
billing effective July 29, 2001. The modified policy states that an NRC
employee must spend more than 75 percent of his/her time in any two-
week period performing duties to support a facility's license or
certificate review to be considered a PM for full-cost fee billing
purposes (Full-cost fee billing causes a prorated portion of a PM's
indirect time to be charged to the licensee. The modified NMSS policy
reduced the number of PMs whose indirect time is billed to the
licensee.). The NRC has not changed that policy, nor how it is being
implemented. The FY 2003 proposed fee rule did not propose to change
the NMSS PM fee billing policy, so there was no need for the proposed
rule to address its implementation status. If licensees have specific
questions about particular invoices, they may request more details from
the NRC and the staff will provide additional information. This has
always been an option available to licensees and applicants who feel
they need more information on the costs billed.
The NRC only charges fees to uranium recovery (or any other)
licensees based on its budgeted costs. Regarding the comments
suggesting that staff time devoted to regulating uranium recovery
facilities should be reduced, the NRC notes that the manner in which
NRC carries out its regulatory responsibilities is not addressed in
this final rule, since this issue is outside the scope of this
rulemaking. Nonetheless, the Commission strives to ensure that all of
its efforts are needed to carry out its health, safety, common defense
and security responsibilities and frequently modifies its regulatory
regime to reduce unnecessary burden on the regulated community.
Concerns about specific licensee review efforts conducted by the staff
should be directed to the appropriate program office.
3. Fee Waivers for Special Projects
Comment. One commenter raised a number of concerns with NRC's fee
waiver policy. This commenter stated that this policy is flawed,
unworkable, and counterproductive to regulatory efficiency and
effectiveness. In particular, this commenter stated that NRC's fee
waiver policy is not consistent with the definitions of part 170 and
part 171 fees as described in the FY 2003 proposed fee rule. The
commenter stated that the Office of the Chief Financial Officer (OCFO)
had been charging part 170 fees for documents that did not fall under
the description in the FY 2003 proposed fee rule of documents for which
part 170 fees should be assessed. This commenter challenged as flawed
various reasons that OCFO had previously given to deny fee waivers in
the past. The commenter advocated cooperative efforts between NRC and
industry, and expressed concern that OCFO positions blocked this
cooperation. The commenter suggested changing NRC's fee waiver policy
to eliminate disincentives for industry to be proactive in addressing
generic regulatory issues.
Response. The NRC did not propose to revise its policy for those
services which part 170 fees are assessed, nor the existing fee waiver
policy in this rulemaking. The proposed rule's description of purposes
for which part 170 fees would apply is intended to be illustrative, not
exhaustive. The NRC clarified its fee waiver policy in the FY 2002
final fee rule (67 FR 42612; June 24, 2002), and responded extensively
to comments similar to the one summarized above in the Response to
Comments section of that final rule. The Commission's position with
respect to its existing fee waiver policy has not changed. In brief,
the NRC has consistently applied its policy of waiving the part 170
fees for a special project submitted to the NRC for the purpose of
supporting ``NRC's'' generic regulatory improvements, and assessing
part 170 fees for the review of a special project that is submitted for
other purposes, including those that support ``industry'' generic
improvements. The NRC finds no justification for granting a part 170
fee waiver, as the comment suggests, whenever a nuclear industry
organization submits a proposal for generic regulatory improvement. Fee
waivers will be granted only if the NRC determines the submission will
be used for NRC's generic regulatory improvements, and the initiative
was submitted specifically for that purpose. Thus, fee waivers are only
appropriate where the NRC's review of the industry initiative is part
of the process of developing the NRC's generic regulatory program, and
the review activities are similar to other NRC generic regulatory
activities whose costs are recovered through part 171 annual fees.
The NRC does not believe its fee waiver policy discourages
cooperative efforts between the agency and industry, and that its
assessment of part 170 fees for a special project is fully consistent
with the NRC's policies on industry initiatives. Under the existing fee
waiver criteria, NRC will waive the review fees for a special project
submitted for the purpose of supporting the agency's regulatory
improvements as long as the NRC staff agrees with the applicant at the
time of submission that it will be used by the NRC in developing or
improving its regulatory framework. The NRC encourages any special
project applicant who believes that its proposal will help improve
NRC's regulatory process to discuss its proposal with the cognizant NRC
program office staff prior to requesting a fee waiver from the Chief
Financial Officer.
C. Specific Part 171 Issues
1. Annual Fees vs. Hourly Fees
Comment. One commenter stated that it prefers annual fees to hourly
fees, since it is easier to plan and allocate resources related to
annual fees, while hourly fees are more unpredictable and more
difficult to incorporate into a licensee's financial plan. Some
commenters complained, however, that a disproportionate amount of the
budget is recovered through annuals fees.
Response. While the NRC appreciates the concerns raised by this
commenter, the agency notes that its collection of part 170 fees is
consistent with Federal law. The NRC assesses part 170 fees under the
IOAA, which allows Federal agencies to assess fees to recover costs
incurred in providing special benefits to identifiable recipients. In
addition, the Conference Report accompanying OBRA-90 specifically
states that the Conference Committee ``* * * expects the NRC to
continue to assess fees under the [IOAA] to the end that each licensee
or applicant pays the full cost to the NRC of all identifiable
regulatory services such licensee or applicant receives'' (136 Cong.
Rec. H12692-3, daily ed. October 26 1990). The NRC has received
additional direction on this issue in the Office of Management and
Budget (OMB) Circular A-25, in which OMB states it is Federal policy
that a user charge will be assessed against each identifiable recipient
for special benefits derived from Federal activities beyond those
received by the general public. The NRC abides by this direction in
charging part 170 fees to recover the costs of providing special
benefits to identifiable recipients.
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Further, the NRC notes that, as required by OBRA-90, the part 171
annual fee recovery amounts are offset by the estimated part 170 fee
collections. As explained above, the NRC is not at liberty to allocate
fees indiscriminately between parts 170 and 171, as statute controls
fee allocation. This applies both to comments that more of the budget
should be shifted from part 170 fees to part 171 as to the position
advocating the reverse.
2. Annual Fees for Materials Users, Including Small Entities
Comment. Two nuclear density gauge users commented that their fees
are too high, and create a significant financial burden on small
business owners. One of these users indicated only a small fraction of
the company's revenues was generated from NRC licensed activities, but
that these activities are essential to support projects it designs and
monitors. With respect to the NRC's upper fee level for small entities,
this commenter stated that the broad revenue range encompassing
$350,000 to $5,000,000 in gross annual receipts tends to favor larger
firms while burdening smaller businesses. Thus, they urge the NRC to
consider adding more tiers for small businesses to reduce the license
fee burden on smaller entities. The other commenter stated that license
fees make it difficult for small projects to recover expenses, and
requested smaller fees.
Response. The NRC stated in the FY 2001 fee rule (66 FR 32452; June
14, 2001), that it would re-examine the small entity fee every two
years, in the same years in which it conducts the biennial review of
fees as required by the Chief Financial Officer (CFO) Act of 1990 (Pub.
L. 101-578, November 15, 1990, 104 Stat. 2838). Accordingly, as
discussed in the FY 2003 proposed fee rule, this year the NRC re-
examined the small entity fees, and determined that no change to the
small entity fee is warranted for FY 2003. The NRC last revised its
small entity fees in FY 2000 (65 FR 36936; June 12, 2000), when it
increased the small entity annual fee and the lower tier small entity
fee by 25 percent. For FY 2003, the NRC has determined that the current
small entity fees of $500 and $2,300 continue to meet the objective of
providing relief to many small entities while recovering from them some
of the NRC costs associated with regulatory activities that benefit
them.
The NRC has addressed comments regarding the impact of fees on
industry in previous fee rulemakings. The NRC has stated since FY 1991,
when the 100 percent fee recovery requirement was first implemented,
that it recognizes the assessment of fees to recover the agency's costs
may result in a substantial financial hardship for some licensees.
However, consistent with the OBRA-90 requirement that annual fees must
have, to the maximum extent practicable, a reasonable relationship to
the cost of providing regulatory services, the NRC's annual fees for
each class of license reflect the NRC's budgeted cost of its regulatory
services to the class. The NRC determines the budgeted costs to be
allocated to each class of licensee through a comprehensive review of
every planned accomplishment in each of the agency's major program
areas. Furthermore, a reduction in the fees assessed to one class of
licensees would require a corresponding increase in the fees assessed
to other classes. Accordingly, the NRC has not based its annual fees on
licensees' economic status, market conditions, or the inability of
licensees to pass through the costs to its customers. Instead, the NRC
has only considered the impacts that it is required to address by law.
Based on the provisions of the Regulatory Flexibility Act (RFA),
the NRC provides reduced annual fees for licensees who qualify as small
entities under the NRC's size standards. The materials users class has
the most licensees who qualify for these reduced fees of any class. As
such, the materials users class receives the largest amount of annual
fee reductions of any class. About 24 percent of these licensees
(approximately 1,200 licensees) have requested small entity
certification in the past. The FY 2003 total estimated fee amount that
will not be collected from licensees who pay reduced annual fees based
on their small entity status is approximately $4.5 million, which must
be collected from other NRC licensees in the form of a surcharge.
Further reductions in fees for materials users would create an
additional fee burden on other licensees, thus raising fairness and
equity concerns.
As stated in 10 CFR 2.810, the NRC uses the Small Business
Administration's (SBA) definition of receipts. Based on the SBA
definition, revenue from all sources, not solely receipts from NRC
licensed activities, is considered in determining whether a licensee
qualifies as a small entity under the NRC's revenue-based size
standards.
The NRC believes that the two tiers of reduced annual fees
currently in place provide substantial fee relief for small entities,
including those with relatively low annual gross revenues. As noted
previously, reductions in fees for small entities must be paid by other
NRC licensees in order to comply with the OBRA-90 requirement to
recover most of the agency's budget authority through fees. While
establishing additional tiers would provide further fee relief to some
small entities, it would result in an increase of the small entity
subsidy paid by other licensees. The NRC must maintain a reasonable
balance between the provisions of OBRA-90 and the RFA requirement that
an agency must examine ways to minimize significant impacts that its
rules may have on a substantial number of small entities. Therefore,
the NRC does not plan to modify its small entity fee structure, nor
provide any further reduction in annual fees beyond that already
established for small entities. The NRC will re-examine the small
entity fees again in FY 2005.
3. Annual Fees for Uranium Recovery Licensees
Comment. The NRC received several comments regarding annual fees
for uranium recovery licensees. These comments supported the reduction
in annual fees for these facilities that resulted from the decision to
rebaseline FY 2003 annual fees. One commenter also supported the
continued implementation of last year's determination that the DOE must
be assessed one-half of all NRC budgeted costs attributed to generic/
other activities for the uranium recovery program. However, despite the
proposed reductions, these commenters stated that there continues to be
the lack of a reasonable relationship between the cost to uranium
recovery licensees of NRC's regulatory program and the benefit derived
from such services. These commenters believe there is excessive
regulatory oversight by the NRC of the uranium recovery industry,
especially in light of the NRC's performance-based licensing approach,
which they contend should result in a reduced regulatory effort. The
commenters assert that the NRC should consider a more balanced approach
to uranium recovery regulation, resulting in less regulatory oversight
and lower costs.
Additionally, the commenters stated that the NRC has failed to
adequately address the issue of decreasing numbers of uranium recovery
licensees. Specifically, as more states become Agreement States and/or
additional sites are decommissioned, the number of NRC regulated sites
continues to decline, leaving fewer licensees to pay a larger share of
the NRC's regulatory costs. These commenters urged NRC to continue its
efforts to seek cost efficiencies through its annual reviews conducted
as part of the budget process. One commenter stated that uranium
recovery licensees continue to be
[[Page 36718]]
subject to unnecessary costs due to overlapping Federal or State agency
jurisdiction. The commenter stated that in non-Agreement States, the
NRC should accept the groundwater quality assessments conducted by the
state or the Environmental Protection Agency rather than performing
duplicative environmental assessments. Several commenters suggested
that the agency proceed expeditiously with extension of the reactor
oversight process for these and other facilities as a risk-informed,
performance-based oversight process that recognizes the inherent safety
of these operations should further reduce unnecessary regulatory
burdens.
Response. The NRC has responded to similar concerns raised by
commenters in several previous fee rulemakings. First, in response to
the specific suggestions about how the NRC should regulate these
licensees or operate more efficiently, the NRC again notes that the
purpose of this rule is to recover the required percentage of its FY
2003 budget authority, and that the manner in which the NRC carries out
its regulatory activities is outside the scope of this rulemaking.
The NRC must assess annual fees to NRC licensees to recover the
budgeted costs not recovered through part 170 fees and other receipts.
The NRC recognizes that this presents fairness and equity issues as
costs must be recovered from licensees for activities that do not
directly benefit them. To address these fairness and equity concerns,
as previously noted, the FY 2001 Energy and Water Development
Appropriations Act amended OBRA-90 to decrease the NRC's fee recovery
amount by two percent per year beginning in FY 2001, until the fee
recovery amount is 90 percent in FY 2005.
The Commission is concerned about the issue of decreasing numbers
of licensees and its implications. Although a decreasing licensee base
is only one of several possible factors affecting annual fees, it
presents a clear dilemma for both the uranium recovery group in its
efforts to maintain a viable industry, and the NRC, which must by
statute recover its budgeted costs from the licensees it regulates.
Potential remedies to this problem involve establishing arbitrary fee
caps or thresholds for certain classes of licensees, or combining fee
categories. However, alternatives involving caps or thresholds, and
combining fee categories, also raise potential legal and fairness and
equity concerns. As noted previously, given the requirements of OBRA-
90, as amended, to collect most of NRC's budget authority through fees,
failure to fully recover costs from certain classes of licensees due to
caps or thresholds would result in other classes of licensees bearing
these costs. Combining fee categories would also have the potential to
increase the annual fees for certain licensees in the new combined
category to cover part of the cost for the licensees whose fees were
reduced by this action. At this time, the Commission is not prepared to
adopt any of these approaches. The NRC notes that the annual fees for
the Uranium Recovery class decreased from FY 2001 to FY 2002, and
remained stable for FY 2003 due in part to the concerted efforts by the
program offices to reduce budgeted costs associated with this program.
However, the NRC recognizes the concerns expressed and will continue
its efforts to seek cost efficiencies and reduce regulatory burdens,
without compromising its commitment to public health and safety.
4. Annual Fees for Power Reactor Licensees
Comment. One commenter stated that there is insufficient basis to
support the required costs to the power reactor licensees for
activities not directly attributable or beneficial to their operation.
Another commenter expressed concern about the 15 percent increase in
the operating power reactor annual fee, despite the two percent drop in
the agency's overall recovery rate as mandated by the FY 2001 Energy
and Water Appropriations Act. Both commenters raised fairness and
equity concerns regarding utilities paying for agency activities that
do not provide a direct benefit to them.
Response. The part 171 power reactor annual fees are established to
recover the costs for generic activities related to power reactors such
as research, rulemakings and guidance development, as well as costs for
other activities for the class not recovered through part 170 fees
(e.g., allegations, most contested hearings, special projects for which
fee waivers are granted, orders issued under 10 CFR 2.202 or responses
to such orders). The annual fees for each class also include a share of
the total surcharge costs. The surcharge is established to recover the
costs for NRC activities that are not attributable to an existing NRC
licensee or class of licensees, such as activities that are exempt from
part 170 fees by law or Commission policy. The surcharge is required in
order for NRC to meet its statutory fee recovery requirements. To
address fairness and equity concerns related to charging NRC license
holders for these expenses that do not directly benefit them, the FY
2001 Energy and Water Development Appropriations Act amended OBRA-90 to
decrease the NRC's fee recovery amount by two percent per year
beginning in FY 2001, until the fee recovery amount is 90 percent in FY
2005. This decrease of six percent in FY 2003 is applied to help offset
the surcharge amount.
The annual fee for the power reactor class includes the agency's
homeland security costs related to power reactors for this fiscal year,
which significantly contributed to the 15 percent increase in power
reactor fees. Additionally, the increased workload for the new reactor
licensing activities contributed to the increase.
The agency workpapers supporting both the proposed and final fee
rules show the budgeted costs for each activity at the NRC's planned
accomplishment level, and the classes of licenses to which these costs
are allocated. Furthermore, the workpapers show by class the total
costs allocated, and the estimated part 170 collections. The annual
fees are established to recover the difference between the NRC's total
recoverable budgeted costs (less the Nuclear Waste Fund) and the
estimated part 170 collections, in accordance with OBRA-90, as amended.
5. Annual Fees for Fuel Facilities Licensees
Comment. Several commenters expressed concerns with the annual fees
for fuel facilities licensees. One commenter stated that these fees are
unreasonably high and not in accord with NRC's Strategic Plan: Fiscal
Year 2000-Fiscal Year 2005. Other commenters did not understand why
there was a significant discrepancy between the increase in annual fees
for fuel fabricators (43 percent) in comparison to power reactors (15
percent), when much of the annual fee increase was attributed to the
costs of security-related activities and these activities are similar
for both types of facilities. These commenters requested that NRC
review this discrepancy and consider revisions to more equitably
allocate these costs. Another commenter expressed concerns about the
annual fees for gaseous diffusion plants (GDPs), stating that it did
not believe that the annual fee for a GDP should be equal to or more
than the annual fee for a power reactor. This commenter suggested that
NRC reevaluate its methodology to establish the FY 2003 fees with the
objective of achieving a fee structure that is fair and equitable when
viewed in its entirety. Another commenter stated that low enriched
uranium fuel facilities constitute a very small part of the nuclear
fuel cycle and pose only
[[Page 36719]]
minimal risk, and that their facility operated in a very competitive
international market and so the magnitude of the fee increase
represents a serious economic burden. The commenter asked that the
proposed fees for fuel facilities be reviewed and that the amount of
the increase be reduced to a more reasonable level (on the order of 10
percent) to be consistent with other facilities and the general
increasing costs of NRC operations.
Response. The part 171 annual fees for each class of licenses are
established to recover the costs for generic activities related to that
class of licenses, including rulemakings and guidance development, as
well as costs for other activities for the class not recovered through
part 170 fees. The NRC believes this methodology is consistent with all
applicable laws, regulations, and policies. Because the costs for one
class of licenses may increase or decrease at different rates than the
costs for other classes of licenses, fees for different classes will
increase or decrease at different rates accordingly. The NRC has
considered capping fee increases for classes of licenses, but has not
chosen to do so for potential legal and fairness and equity reasons.
The NRC appreciates the concerns raised about fee predictability
and stability. In order to recover its budgeted annual costs in
compliance with the OBRA-90, as amended, the NRC annually promulgates a
rule establishing licensee fees. In light of concerns about annual
fluctuations in these fees, the NRC announced in FY 1995 that annual
fees would be adjusted only by the percentage change (plus or minus) in
NRC's total budget authority, adjusted for changes in estimated
collections for 10 CFR Part 170 fees, the number of licensees paying
annual fees, and as otherwise needed to assure the billed amounts
resulted in the required collections. The NRC indicated that if there
were a substantial change in the total NRC budget authority or the
magnitude of the budget allocated to a specific class of licenses, the
annual fee base would be recalculated by rebaselining. Commission
policy sets the maximum interval between rebaselined fee schedules at
three years. Based on the change in the magnitude of the budget to be
recovered through fees, the Commission determined that it was
appropriate to rebaseline its part 171 annual fees in FY 2003.
Rebaselining fees resulted in increased annual fees compared to FY 2002
for four classes of licenses (power reactors, spent fuel storage/
reactor decommissioning, fuel facilities, and rare earth facilities),
and decreased annual fees for two classes (non-power reactors and
uranium recovery). For the small materials users and transportation
classes, some categories of licensees will have increased annual fees
and others will have decreased annual fees.
Regarding the comment that fees to fuel facilities represent an
economic burden, since FY 1991 the Commission has consistently taken
the position that it will not consider economic factors when
establishing fees, except for reduced fees provided for small entities
based on the policies reflected in the Regulatory Flexibility Act.
Granting fee relief to the fuel facility licensees on the basis of
economic considerations could set an untenable precedent for the NRC
with the potential to unravel the stability and viability of the entire
fee system. Not only would other classes of licenses be required to
subsidize fuel facilities through increased fees, but other categories
of licensees may also request similar treatment based on analogous
economic considerations. Thus, it would be difficult to develop a
rationale for waiving the fees for one class of licenses while denying
similar requests from other NRC licensees which may also be
experiencing economic downturns.
The annual fees for the fuel facility class reflect increased
budgeted costs for activities that are not subject to cost recovery
under part 170, primarily homeland security activities related to fuel
facilities. Such activities include the issuance and follow-up of
orders directing the fuel facility licensees to take interim
compensatory measures to increase security, and a series of risk-
informed vulnerability assessments the NRC is conducting on fuel
facilities.
The NRC initially established a fuel facility ``effort/fee'' matrix
in the FY 1995 fee rule (60 FR 32218; June 20, 1995), further revising
it in the FY 1999 fee rule (64 FR 31448; June 10, 1999). The purpose of
this matrix is to accurately reflect the NRC's current costs of
providing generic and other regulatory services to each type of fuel
facility. The matrix depicts the categorization of licenses according
to their activities, level, scope, depth of coverage, and rigor or
generic regulatory programmatic effort applicable to each facility
category from a safety and safeguards perspective. The relative
weighted factors for each facility type for the various fee subclasses
are depicted in Table VII. The matrix has been quite valuable in
helping the NRC assign appropriate fees for each type of fuel facility.
It is routinely available among the workpapers during the public
comment process of each year's rulemaking for revision of fee schedules
and the fact that it has withstood this scrutiny for many years
continues to lend support to the NRC's confidence in it as a robust
tool in the fee development process.
Annual Fees for Spent Fuel Storage/Reactor Decommissioning
Comment. One commenter stated that the proposed 29.3 percent
increase in annual fees for spent fuel storage/reactor decommissioning
licensees is not equitable and places an undue burden on this
particular class of licensees, which do not generate revenue through
the sale of electricity and do not have a guarantee of recovering
additional costs by petitioning local public utility commissions. The
commenter further stated that rapidly rising annual fee increases for
spent fuel storage/reactor decommissioning licensees place undue budget
constraints that could affect the resources available for performing
plant decommissioning activities.
Response. The NRC has responded to similar comments in previous
rulemakings. Annual fees for the classes of licenses are based on the
budgeted costs for the classes, as well as a surcharge to recover the
costs for NRC activities that are not attributable to an existing NRC
licensee or class of licensee, including activities that are exempt
from part 170 fees by law or Commission policy. Since budgeted costs
for one class of licenses may rise or fall at different rates than for
other classes of licenses, so will annual fees. The increase in annual
fees for the spent fuel storage/reactor decommissioning class of
licensees reflects an increase in budgeted costs allocated to this
class since FY 2002, including homeland security activities that are on
the fee base for FY 2003. Recovering the costs associated with spent
fuel storage and reactor decommissioning from operating power reactors,
power reactors in decommissioning or possession only status if they
have fuel on site, and independent spent fuel storage part 72 licensees
who do not hold a part 50 license, is consistent with the intent of
OBRA-90 to assess annual fees to licensees or classes of licenses,
commensurate with the expenditure of the NRC's resources. The
Commission believes it would be inequitable to grant fee relief to one
class of licenses (except to address small entity issues in accordance
with the Regulatory Flexibility Act) on the basis of economic
considerations, since this class would then need to be subsidized by
other classes of licenses.
[[Page 36720]]
D. Other Issues
1. Security Costs
Comment. The majority of comments did not support the NRC
collecting security-related costs from licensees. These commenters
noted that the FY 2003 NRC budget includes $29.3 million for homeland
security activities, and stated that these activities should be funded
through the General Treasury as part of the nation's protection of
critical infrastructure. Some of these commenters also stated that
significant security costs are being incurred for nuclear vulnerability
assessments without due consideration of the evaluated threats or rigor
of the methodology for conducting these assessments, which is not the
best way to allocate the nation's resources in defending against
terrorist attacks. Other commenters noted their belief that there is
overlap and duplication of functions in Nuclear Security and Incident
Response with those of other Federal agencies, particularly the
Department of Homeland Security. One comment suggested that the
increased fees for FY 2003 did not appear to reflect a consideration
for the substantial work and engineered solutions that have already
been implemented in the area of security.
Response. The NRC appreciates the concerns raised by commenters
with regard to homeland security costs being funded through licensee
fees. The NRC notes that the President's FY 2003 budget requested that
NRC's funding for homeland security activities be excluded from the fee
base, as was the case in FY 2002. However, the Energy and Water
Development Appropriations Act, 2003, contained in the Consolidated
Appropriations Resolution, 2003 (Pub. L. 108-7), included NRC's budget
for homeland security activities in the fee base. Therefore, the FY
2003 fees must include the $29.3 million budgeted for NRC's homeland
security activities. The Commission agrees there are merits to the
arguments that licensees should be treated in the same fashion as other
owner/operators of critical infrastructure that do not generally pay
user fees for Federal agency homeland security costs. The NRC notes
that S. 1043, the ``Nuclear Infrastructure Security Act of 2003,''
recently approved by the Senate Committee on Environment and Public
Works, provides that amounts appropriated to the NRC for homeland
security activities would be excluded from the fee base except for
costs associated with fingerprinting, background checks and security
inspections.
In response to the comments that expressed concern regarding how
the NRC is expending homeland security funds, as stated previously, the
NRC's budget and manner in which the agency carries out its activities
are not within the scope of this rulemaking. Nonetheless, the NRC is
addressing the issues raised regarding the costs of vulnerability
assessments and NRC's relationship with the Department of Homeland
Security.
2. NRC Budget
Comment. Many commenters offered suggestions for reducing NRC's
budget and for more efficient/different use of NRC's resources. Many of
these comments addressed expenditures on homeland security, while
others suggested more generally that NRC reduce expenditures,
streamline processes, or otherwise perform activities more efficiently.
Commenters suggested that changes in NRC's regulatory approach, such as
the reactor oversight process and risk-informed changes to inspection,
assessment, and enforcement processes, should result in reduced fees.
One commenter suggested that increased cooperation between the NRC and
industry could increase efficiency and conservation of limited
resources.
Response. The NRC's budgets and the manner in which the NRC carries
out its activities are not within the scope of this rulemaking.
Therefore, this final rule does not address the commenters' suggestions
concerning the NRC's budget and the use of NRC resources. The NRC's
budget is submitted to the Office of Management and Budget and to
Congress for review and approval. The Congressionally-approved budget
resulting from this process reflects the resources deemed necessary for
NRC to carry out its statutory obligations. In compliance with OBRA-90,
the fees are established to recover the required percentage of the
approved budget.
3. Cost Recovery for Agreement State Activities
Comment. One commenter stated that it supported the approach to
allocate Agreement State Program activities to user fees, rather than
the General Fund. Another commenter suggested the opposite approach,
and stated that the costs for activities like Agreement State Programs
should not be allocated to user fees, but rather paid for from the
General Fund.
Response. The FY 2003 proposed fee rule did not propound to change
how the NRC recovers costs for Agreement State Program activities, nor
does this final rule make any changes with regard to recovery of these
costs. The Commission has the authority to, but as a matter of policy
does not, assess part 170 fees for specific services rendered to an
Agreement State. Agreement States devote significant monetary and staff
resources to national radiation control programs, and this effort
assists the NRC and other Federal agencies in protecting public health
and safety. The NRC costs for these Agreement State activities are
funded through a surcharge, which is allocated to the various license
classes on a prorated basis.
The surcharge is being funded from the general fund of the U.S.
Treasury as a result of the FY 2001 Energy and Water Development
Appropriations Act. This act amended OBRA-90 to decrease the NRC's fee
recovery amount by 2 percent per year beginning in FY 2001, until the
fee recovery amount is 90 percent in FY 2005, to address fairness and
equity concerns related to charging NRC license holders for agency
budgeted costs that do not provide a direct benefit to the licensee.
The 2 percent per year reduction from the fee base accounts for
activities such as Agreement State Oversight and Agreement State
Regulatory Support.
4. Fee Increase Communication and Timing
Comment. Several commenters suggested that the NRC communicate the
potential magnitude of fee increases earlier in the process. The
commenters stated that this communication would allow licensees to
forecast and mitigate financial impacts. These commenters expressed
disappointment that the NRC gave its licensees no warning that
significant increases were being contemplated. Several commenters
expressed concern that NRC fee increases are seen by licensees almost a
year after their budgets have been initially set, and suggested that
NRC shift its process by one year (e.g., the 2003 fee collection would
be the 2004 fee projection). One commenter specifically requested that
NRC review and forecast ongoing costs and fees over the next five years
so that licensees can make accurate business forecasts. One commenter
stated that NRC's method of collecting retroactive fees during the last
government quarter for the previous three quarters will create a
significant and unanticipated negative financial impact.
Response. The NRC appreciates the concerns raised by these
commenters. However, as a matter of law (OBRA-90, as amended) and
policy the NRC must collect the statutorily mandated level of fees by
the end of the fiscal year to which they are attributed, in this case,
[[Page 36721]]
September 30, 2003. The law also requires that these fees be
established through the rulemaking process. The NRC makes every effort
to issue its proposed and final fee rules in a timely manner to afford
licensees as much time as possible to plan for fee increases. However,
the agency must ensure that it fully complies with all applicable
legislation, regulations, and policies, as well as perform the required
fee calculations, in a relatively short time each year to produce its
fee rules. This year Congress did not enact NRC appropriations for FY
2003 until February 20, 2003. Because the NRC does not know in advance
what its future budgets will be (i.e., proposed budgets must be
submitted to the Office of Management and Budget for its review before
the President submits the budget to Congress for enactment), the agency
believes it is not practicable to set fees based on future estimated
budgets, nor would such an approach be consistent with its statutory
mandate. The NRC will continue to strive to issue its fee regulations
as early in the process as is practicable in order to give as much time
as possible for licensees to plan for changes in fees.
III. Final Action
The NRC is amending its licensing, inspection, and annual fees to
recover approximately 94 percent of its FY 2003 budget authority,
including the budget authority for its Office of the Inspector General,
less the appropriations received from the NWF. The NRC's total budget
authority for FY 2003 is $584.6 million, of which approximately $24.7
million has been appropriated from the NWF. Based on the 94 percent fee
recovery requirement, the NRC must recover approximately $526.3 million
in FY 2003 through part 170 licensing and inspection fees, part 171
annual fees, and other offsetting receipts. The total amount to be
recovered through fees and other offsetting receipts for FY 2003 is
$46.8 million more than the amount estimated for recovery in FY 2002.
The NRC estimates that approximately $127.5 million will be
recovered in FY 2003 from part 170 fees and other offsetting receipts.
For FY 2003, the NRC also estimates a net adjustment of approximately
$1.9 million for FY 2003 invoices that the NRC estimates will not be
paid during the fiscal year, and for payments received in FY 2003 for
FY 2002 invoices. The remaining $396.8 million will be recovered
through the part 171 annual fees, compared to $345.6 million for FY
2002.
A primary reason for the increase in total fees, as well as the
annual fee amount, for FY 2003 compared to FY 2002 is that the amount
to be recovered for FY 2003 includes $29.3 million for homeland
security activities, whereas the FY 2002 funding for homeland security
was excluded from fees. While the President's FY 2003 budget requested
that NRC's funding for homeland security activities continue to be
excluded from the fee base, the Energy and Water Development
Appropriations Act, 2003, contained in the Consolidated Appropriations
Resolution, 2003 (Pub. L. 108-7), included NRC's budget for homeland
security activities in the fee base. Therefore, the FY 2003 fees
include the $29.3 million budgeted for NRC's homeland security
activities. Other reasons for the fee increases include the 2003
Federal pay raise, and the increased workload for new reactor licensing
activities and reactor license renewal.
Table I summarizes the budget and fee recovery amounts for FY 2003.
Due to rounding, adding the individual numbers in the table may result
in a total that is slightly different than the one shown.
Table I.--Budget and Fee Recovery Amounts for FY 2003
[Dollars in millions]
------------------------------------------------------------------------
------------------------------------------------------------------------
Total Budget Authority..................................... $584.6
Less NWF............................................... -24.7
------------
Balance............................................ $559.9
Fee Recovery Rate for FY 2003.......................... x 94.0%
------------
Total Amount to be Recovered For FY 2003................... $526.3
Less Carryover from FY 2002............................ -0
------------
Amount to be Recovered Through Fees and Other Receipts..... $526.3
Less Estimated Part 170 Fees and Other Receipts........ -127.5
============
Part 171 Fee Collections Required.......................... $398.8
Part 171 Billing Adjustments:..............................
Unpaid FY 2003 Invoices (estimated).................... 2.4
Less Payments Received in FY 2003 for Prior Year -4.3
Invoices (estimated)..................................
------------
Subtotal........................................... -1.9
============
Adjusted Part 171 Collections Required..................... $396.8
------------------------------------------------------------------------
The FY 2003 final fee rule is a ``major'' final action as defined
by the Small Business Regulatory Enforcement Fairness Act of 1996.
Therefore, the NRC's fees for FY 2003 will become effective 60 days
after publication of the final rule in the Federal Register. The NRC
will send an invoice for the amount of the annual fee to reactors and
major fuel cycle facilities upon publication of the FY 2003 final rule.
For these licensees, payment will be due on the effective date of the
FY 2003 final rule. Those materials licensees whose license anniversary
date during FY 2003 falls before the effective date of the final FY
2003 rule will be billed for the annual fee during the anniversary
month of the license at the FY 2002 annual fee rate. Those materials
licensees whose license anniversary date falls on or after the
effective date of the final FY 2003 rule will be billed for the annual
fee at the FY 2003 annual fee rate during the anniversary month of the
license, and payment will be due on the date of the invoice.
In accordance with its FY 1998 announcement, the NRC has
discontinued mailing the final fee rule
[[Page 36722]]
to all licensees as a cost-saving measure. Accordingly, the NRC does
not plan to routinely mail the FY 2003 final fee rule or future final
fee rules to licensees. However, the NRC will send the final rule to
any licensee or other person upon specific request. To request a copy,
contact the License Fee and Accounts Receivable Branch, Division of
Accounting and Finance, Office of the Chief Financial Officer, at 301-
415-7554, or e-mail us at [email protected]. The NRC plans to publish the
final fee rule in June 2003. In addition to publication in the Federal
Register, the final rule will be available on the Internet at http://ruleforum.llnl.gov for at least 90 days after the effective date of the
final rule.
The NRC is amending 10 CFR Parts 170 and 171 as discussed in
Sections A and B below.
A. Amendments to 10 CFR Part 170: Fees for Facilities, Materials,
Import and Export Licenses, and Other Regulatory Services Under the
Atomic Energy Act of 1954, as Amended
The NRC is revising the hourly rates used to calculate fees and is
adjusting the part 170 fees based on the revised hourly rates and the
results of the agency's biennial review of fees required by the Chief
Financial Officer (CFO) Act of 1990 (Pub. L. 101-578, November 15,
1990, 104 Stat. 2838). Additionally, the NRC is revising fee category
15.A. of Sec. 170.31 to cover all categories of radioactive waste
import license applications and to revise category 15.B. to remove the
radioactive waste import license applications.
The amendments are as follows:
1. Hourly Rates
The NRC is revising the professional hourly rates for NRC staff
time established in Sec. 170.20. These rates are based on the number
of FY 2003 direct program FTEs and the FY 2003 NRC budget, excluding
direct program support costs and NRC's appropriations from the NWF.
These rates are used to determine the part 170 fees. The rate for the
reactor program is $156 per hour ($276,661 per direct FTE). This rate
is applicable to all activities for which fees are assessed under Sec.
170.21 of the fee regulations. The rate for the materials program
(nuclear materials and nuclear waste programs) is $158 per hour
($280,876 per direct FTE). This rate is applicable to all activities
for which fees are assessed under Sec. 170.31 of the fee regulations.
In the FY 2002 final fee rule, the reactor and materials program rates
were $156 and $152, respectively.
A major reason for the 4 percent increase to the materials program
rate is the salary and benefits increase that results primarily from
the Government-wide pay raise. While salary and benefits also increase
for the reactor program, the increase is offset by a reduction in the
average overhead cost per direct FTE.
The method used to determine the two professional hourly rates is
as follows:
a. Direct program FTE levels are identified for the reactor program
and the materials program (nuclear materials and nuclear waste
programs).
b. 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 rates because the costs for
direct contract support are charged directly through the various
categories of fees.
c. All other program costs (e.g., Salaries and Benefits, Travel)
represent ``in-house'' costs and are to be collected by dividing them
uniformly by the total number of direct FTEs for the program. In
addition, salaries and benefits plus contracts for non-program direct
management and support, and for the Office of the Inspector General,
are allocated to each program based on that program's direct costs.
This method results in the following costs which are included in the
hourly rates. Due to rounding, adding the individual numbers in the
table may result in a total that is slightly different than the one
shown.
Table II.--FY 2003 Budget Authority To Be Included in Hourly Rates
------------------------------------------------------------------------
Reactor Materials
program program
------------------------------------------------------------------------
Direct Program Salaries & Benefits (millions). $134.1 $34.4
Overhead Salaries & Benefits, Program Travel 62.3 17.1
and Other Support (millions).................
Allocated Agency Management and Support 118.5 31.1
(millions)...................................
--------------
Subtotal (millions)..................... $314.9 $82.6
Less offsetting receipts (million)............ -0 .1 -0.00
--------------
Total Budget Included in Hourly Rate $314.8 $82.6
(millions).............................
==============
Program Direct FTEs........................... 1138.0 294.1
Rate per Direct FTE........................... $276,661 $280,876
Professional Hourly Rate (Rate per direct FTE $156 $158
divided by 1,776 hours)......................
------------------------------------------------------------------------
As shown in Table II, dividing the $314.8 million budgeted amount
(rounded) included in the hourly rate for the reactor program by the
reactor program direct FTEs (1138.0) results in a rate for the reactor
program of $276,661 per FTE for FY 2003. The Direct FTE Hourly Rate for
the reactor program is $156 per hour (rounded to the nearest whole
dollar). This rate is calculated by dividing the cost per direct FTE
($276,661) by the number of productive hours in one year (1,776 hours)
as set forth in the revised OMB Circular A-76, ``Performance of
Commercial Activities.'' Similarly, dividing the $82.6 million budgeted
amount (rounded) included in the hourly rate for the materials program
by the program direct FTEs (294.1) results in a rate of $280,876 per
FTE for FY 2003. The Direct FTE Hourly Rate for the materials program
is $158 per hour (rounded to the nearest whole dollar). This rate is
calculated by dividing the cost per direct FTE ($280,876) by the number
of productive hours in one year (1,776 hours).
2. Fee Adjustments
The NRC is adjusting the current part 170 fees in Sec. Sec. 170.21
and 170.31 to reflect both the revised hourly rates and the results of
the biennial review of part 170 fees required by the CFO Act. To comply
with the requirements of the CFO Act, the NRC has evaluated historical
professional staff hours used to process a new license application for
those materials licensees whose fees are based on the average cost
method, or ``flat'' fees. This review also included new license and
amendment
[[Page 36723]]
applications for import and export licenses.
Evaluation of the historical data shows that fees based on the
average number of professional staff hours required to complete
licensing actions in the materials program should be increased in some
categories and decreased in others to more accurately reflect current
costs incurred in completing these licensing actions.
The data for the average number of professional staff hours needed
to complete new licensing actions was last updated in FY 2001 (66 FR
32452; June 14, 2001). Thus, the revised average professional staff
hours in this fee rule reflect the changes in the NRC licensing review
program that have occurred since FY 2001.
As a result of the biennial review, the licensing fees that are
based on the average professional staff hours reflect an increase in
average time for new license applications for six of the 33 materials
program fee categories, a decrease in average time for eight fee
categories, and the same average time for the remaining 19 fee
categories. Similarly, the average time for applications for new export
and import licenses and for amendments to export and import licenses
remained the same for eight fee categories in Sec. Sec. 170.21 and
170.31, and decreased for two other fee categories.
The licensing fees for fee categories K.1 through K.5 of Sec.
170.21, and fee categories 1C, 1D, 2B, 2C, 3A through 3P, 4B through
9D, 10B, 15A through 15E, and 16 of Sec. 170.31 are based on the
revised average professional staff hours needed to process the
licensing actions multiplied by the revised materials program
professional hourly rate for FY 2003.
The biennial review also included the ``flat'' fee for the general
license registrations covered by fee Category 3.Q. As a result of this
review, the fee per registration is $620, compared to $450 in FY 2002.
The revised fee is based on the current estimated number of
registrants, current annual resource estimates for the program, and the
FY 2003 materials program FTE rate. This increase to the current fee of
$450 is based on experience with the registrations to date, which
indicates that the average cost per registrant is higher than
originally estimated. The next biennial review of the registration fee
will be included in the FY 2005 fee rule; however, the registration fee
may change in the FY 2004 fee rule if there is a change to the
materials program FTE rate for FY 2004.
The amounts of the materials licensing ``flat'' fees are rounded as
follows: fees under $1,000 are rounded to the nearest $10, fees that
are greater than$1,000 but less than $100,000 are rounded to the
nearest $100, and fees that are greater than $100,000 are rounded to
the nearest $1,000. Applications filed on or after the effective date
of the final rule will be subject to the revised fees in this final
rule.
The NRC is expanding fee Category 15.A. of Sec. 170.31 to include
all categories of radioactive waste import license applications, and
modifying Category 15.B. of Sec. 170.31 to exclude these types of
import license applications. This change is being made because all
applications for the import of radioactive waste must be reviewed by
the Executive Branch and require the involvement of all states and
compacts, as well as extensive coordination within the NRC. Therefore,
the NRC efforts for the waste import license applications are more
closely aligned with the efforts for the other types of export and
import licenses currently covered by Category 15.A.
In addition, the Office of Nuclear Reactor Regulation revised its
policy of charging the sites for administrative/overhead fees for early
assignment of resident inspectors. Under this new policy, the
administrative/overhead fees for the individuals selected for early
assignments will not be charged to the site.
In summary, the NRC is amending 10 CFR Part 170 to --
1. Revise the materials and reactor programs FTE hourly rates;
2. Revise the licensing fees to be assessed to reflect the reactor
and materials program hourly rates and to comply with the CFO Act
requirement that fees be reviewed biennially and revised as necessary
to reflect the cost to the agency;
3. Revise Category 15.A. of Sec. 170.31 to include radioactive
waste import licenses, and exclude these types of applications from
Category 15.B.
B. Amendments to 10 CFR Part 171: Annual Fees for Reactor Licenses, and
Fuel Cycle Licenses and Materials Licenses, Including Holders of
Certificates of Compliance, Registrations, and Quality Assurance
Program Approvals, and Government Agencies Licensed by the NRC
The NRC is revising the annual fees for FY 2003 as follows.
1. Annual Fees
The NRC is establishing rebaselined annual fees for FY 2003. The
Commission's policy commitment, made in the statement of considerations
accompanying the FY 1995 fee rule (60 FR 32225; June 20, 1995), and
further explained in the statement of considerations accompanying the
FY 1999 fee rule (64 FR 31448; June 10, 1999), determined that base
annual fees will be re-established (rebaselined) at least every third
year, and more frequently if there is a substantial change in the total
NRC budget or in the magnitude of the budget allocated to a specific
class of licenses. The fees were last rebaselined in FY 2002. Based on
the change in the magnitude of the budget to be recovered through fees,
the Commission has determined that it is appropriate to rebaseline the
annual fees again this year. Rebaselining fees will result in increased
annual fees compared to FY 2002 for four classes of licenses (power
reactors, spent fuel storage/reactor decommissioning, fuel facilities,
and rare earth facilities), and decreased annual fees for two classes
(non-power reactors and uranium recovery). For the small materials
users and transportation classes, some categories of licenses will have
increased annual fees and others will have decreased annual fees.
The annual fees in Sec. Sec. 171.15 and 171.16 will be revised for
FY 2003 to recover approximately 94 percent of the NRC's FY 2003 budget
authority, less the estimated amount to be recovered through part 170
fees and the amounts appropriated from the NWF. The total amount to be
recovered through annual fees for FY 2003 is $396.8 million, compared
to $345.6 million for FY 2002.
Within the fee classes, the FY 2003 annual fees will increase for
many categories of licenses, decrease for other categories, and for two
categories remain the same from the previous year. The two largest
categories of materials licensees (which together include nearly 3,500
of NRC's approximately 4,900 materials user licenses) show annual fee
decreases compared to FY 2002 of 7.4 percent and 9.8 percent. The
increases in annual fees range from approximately 1.2 percent for DOE's
transportation activities to approximately 62 percent for licenses
issued to distribute items containing byproduct material that require
device review to persons exempt from licensing requirements of part 30.
The decreases in annual fees range from approximately 2.7 percent for
two materials categories and for the quality assurance approvals for
users to approximately 53 percent for materials licenses authorizing
possession and use of byproduct material, source material, and/or
special nuclear material for well logging, well surveys, and tracer
studies (other than field flooding). The fees remain the same for
materials licenses
[[Page 36724]]
authorizing possession and use of byproduct material in sealed sources
for irradiation of materials where the source is not removed from its
shield and licenses specifically authorizing the receipt of waste
byproduct material, source material, or special nuclear material from
other persons for the purpose of packaging or repackaging the material.
Factors affecting the changes to the annual fee amounts include
adjustments in budgeted costs for the different classes of licenses
(including the addition of budgeted costs for NRC's homeland security
activities), the reduction in the fee recovery rate from 96 percent for
FY 2002 to 94 percent for FY 2003, the estimated part 170 collections
for the various classes of licenses, the increased hourly rate for the
materials and waste program, and decreases in the numbers of licensees
for certain categories of licenses. In addition, there is no carryover
from FY 2002 to reduce the FY 2003 fees. The FY 2002 fees were reduced
by a $1.7 million carryover from FY 2001.
Table IV below shows the rebaselined annual fees for FY 2003 for
representative categories of licenses.
Table IV.--Rebaselined Annual Fees for FY 2003
------------------------------------------------------------------------
FY 2003
Class/category of licenses annual fee
------------------------------------------------------------------------
Operating Power Reactors (including Spent Fuel Storage/ $3,251,000
Reactor Decommissioning annual fee).......................
Spent Fuel Storage/Reactor Decommissioning................. 319,000
Nonpower Reactors.......................................... 63,300
High Enriched Uranium Fuel Facility........................ 5,836,000
Low Enriched Uranium Fuel Facility......................... 1,957,000
UF6 Conversion Facility.................................... 839,000
Uranium Mills.............................................. 63,700
Transportation:
Users/Fabricators...................................... 76,200
Users Only............................................. 7,100
Typical Materials Users:
Radiographers.......................................... 12,200
Well Loggers........................................... 4,700
Gauge Users............................................ 1,900
Broad Scope Medical.................................... 24,700
------------------------------------------------------------------------
The annual fees assessed to each class of licenses include a
surcharge to recover those NRC budgeted costs that are not directly or
solely attributable to the classes of licenses, but must be recovered
from licensees to comply with the requirements of OBRA-90, as amended.
Based on the FY 2001 Energy and Water Appropriations Act which amended
OBRA-90 to decrease the NRC's fee recovery amount by 2 percent per year
beginning in FY 2001, until the fee recovery amount is 90 percent in FY
2005, the total surcharge costs for FY 2003 will be reduced by about
$33.6 million. The total FY 2003 budgeted costs for these activities
and the reduction to the total surcharge amount for fee recovery
purposes are shown in Table V. Due to rounding, adding the individual
numbers in the table may result in a total that is slightly different
than the one shown.
Table V.--Surcharge Costs
[Dollars in millions]
------------------------------------------------------------------------
FY 2003
Category of costs budgeted
costs
------------------------------------------------------------------------
1. Activities not attributable to an existing NRC licensee
or class of licensee:
a. International activities............................ $10.3
b. Agreement State oversight........................... 8.8
c. Low-level waste disposal generic activities......... 2.7
d. Site decommissioning management plan activities not 3.6
recovered under part 170..............................
2. Activities not assessed part 170 licensing and
inspection fees or part 171 annual fees based on existing
law or Commission policy:
a. Fee exemption for nonprofit educational institutions 6.7
b. Licensing and inspection activities associated with 2.9
other Federal agencies................................
c. Costs not recovered from small entities under 10 CFR 4.5
171.16(c).............................................
3. Activities supporting NRC operating licensees and
others:
a. Regulatory support to Agreement States.............. 13.4
b. Generic decommissioning/reclamation (except those 4.9
related to power reactors)............................
------------
Total surcharge costs............................ 57.8
Less 6 percent of NRC's FY 2003 total budget (less NWF).... -33.6
------------
Total Surcharge Costs to be Recovered............ $24.2
------------------------------------------------------------------------
As shown in Table V, $24.2 million is the total surcharge cost
allocated to the various classes of licenses for FY 2003. The NRC will
continue to allocate the surcharge costs, except Low-Level Waste (LLW)
surcharge costs, to each
[[Page 36725]]
class of licenses based on the percent of the budget for that class.
The NRC will continue to allocate the LLW surcharge costs based on the
volume of LLW disposed of by certain classes of licenses. The surcharge
costs allocated to each class will be included in the annual fee
assessed to each licensee. The FY 2003 surcharge costs allocated to
each class of licenses are shown in Table VI. Due to rounding, adding
the individual numbers in the table may result in a total that is
slightly different than the one shown.
Table VI.--Allocation of Surcharge
----------------------------------------------------------------------------------------------------------------
LLW surcharge Non-LLW surcharge Total
---------------------------------------------------- surcharge
Percent $,M Percent $,M $,M
----------------------------------------------------------------------------------------------------------------
Operating Power Reactors....................... 74 2.0 79.3 17.1 19.1
Spent Fuel Storage/Reactor Decomm.............. ........... ........... 8.2 1.8 1.8
Nonpower Reactors.............................. ........... ........... 0.1 0.0 0.0
Fuel Facilities................................ 8 0.2 6.7 1.4 1.6
Materials Users................................ 18 0.5 3.8 0.8 1.3
Transportation................................. ........... ........... 1.2 0.3 0.3
Rare Earth Facilities.......................... ........... ........... 0.2 0.0 0.0
Uranium Recovery............................... ........... ........... 0.7 0.1 0.1
--------------
Total Surcharge.......................... 100 2.7 100.0 21.5 24.2
----------------------------------------------------------------------------------------------------------------
The budgeted costs allocated to each class of licenses and the
calculations of the rebaselined fees are described in a. through h.
below. The workpapers which support this final rule show in detail the
allocation of NRC's budgeted resources for each class of licenses and
how the fees are calculated. The workpapers are available
electronically at the NRC's Electronic Reading Room on the Internet at
Web site address http://www.gov/reading-rm/adams.html. For a period of
90 days after the effective date of this final rule, the workpapers may
also be examined at the NRC Public Document Room located at One White
Flint North, Room O-1F22, 11555 Rockville Pike, Rockville, MD 20852-
2738.
a. Fuel Facilities. The revised annual fees for the fuel facility
class reflect increased budgeted costs for activities that are not
subject to cost recovery under part 170, primarily homeland security
activities related to fuel facilities. Such activities include the
issuance and follow-up of orders directing the fuel facility licensees
to take interim compensatory measures to increase security, and a
series of risk-informed vulnerability assessments the NRC is conducting
on fuel facilities.
The FY 2003 budgeted costs of approximately $27.0 million to be
recovered in annual fees assessed to the fuel facility class is
allocated to the individual fuel facility licensees based on the
effort/fee determination matrix established in the FY 1999 final fee
rule (64 FR 31448; June 10, 1999). In the matrix (which is included in
the NRC workpapers that are publicly available), licensees are grouped
into five categories according to their licensed activities (i.e.,
nuclear material enrichment, processing operations, and material form)
and according to the level, scope, depth of coverage, and rigor of
generic regulatory programmatic effort applicable to each category from
a safety and safeguards perspective. This methodology can be applied to
determine fees for new licensees, current licensees, licensees in
unique license situations, and certificate holders.
The methodology is adaptable to changes in the number of licensees
or certificate holders, licensed-certified material/activities, and
total programmatic resources to be recovered through annual fees. When
a license or certificate is modified, it may result in a change of
category for a particular fuel facility licensee as a result of the
methodology used in the fuel facility effort/fee matrix. Consequently,
this change may also have an effect on the fees assessed to other fuel
facility licensees and certificate holders. For example, if a fuel
facility licensee amends its license/certificate in such a way (e.g.,
decommissioning or license termination) that results in them not being
subject to part 171 costs applicable to the fee class, then the
budgeted costs for the safety and/or safeguards components will be
spread among the remaining fuel facility licensees/certificate holders,
resulting in higher fees for those affected licensees.
The methodology is applied as follows. First, a fee category is
assigned based on the nuclear material and activity authorized by
license or certificate. Although a licensee/certificate holder may
elect not to fully utilize a license/certificate, the license/
certificate is still used as the source for determining authorized
nuclear material possession and use/activity. Next, the category and
license/certificate information are used to determine where the
licensee/certificate holder fits into the matrix. The matrix depicts
the categorization of licensees/certificate holders by authorized
material types and use/activities, and the relative generic regulatory
programmatic effort associated with each category. The programmatic
effort (expressed as a value in the matrix) reflects the safety and
safeguards risk significance associated with the nuclear material and
use/activity, and the commensurate generic regulatory program (i.e.,
scope, depth and rigor) level of effort.
The effort factors for the various subclasses of fuel facility
licenses are summarized in Table VII.
Table VII.--Effort Factors For Fuel Facilities
----------------------------------------------------------------------------------------------------------------
Effort factors (In percent)
Facility type Number of -------------------------------
facilities Safety Safeguards
----------------------------------------------------------------------------------------------------------------
High Enriched Uranium Fuel........................................ 2 91 (36.0) 76 (57.1)
Enrichment........................................................ 2 70 (27.7) 34 (25.6)
[[Page 36726]]
Low Enriched Uranium Fuel......................................... 3 66 (26.1) 18 (13.5)
UF6 Conversion.................................................... 1 12 (4.7) 0 (0)
Limited Operations Facility....................................... 1 8 (3.2) 3 (2.3)
Others............................................................ 1 6 (2.4) 2 (1.5)
----------------------------------------------------------------------------------------------------------------
Applying these factors to the safety, safeguards, and surcharge
components of the $27.0 million total annual fee amount for the fuel
facility class results in annual fees for each licensee within the
subcategories of this class summarized in Table VIII.
Table VIII.--Annual Fees for Fuel Facilities
------------------------------------------------------------------------
FY 2003
Facility type annual fee
------------------------------------------------------------------------
High Enriched Uranium Fuel................................. $5,836,000
Uranium Enrichment......................................... 3,634,000
Low Enriched Uranium....................................... 1,957,000
UF6 Conversion............................................. 839,000
Limited Operations Facility................................ 769,000
Others..................................................... 559,000
------------------------------------------------------------------------
b. Uranium Recovery Facilities. The FY 2003 budgeted costs,
including surcharge costs, to be recovered through annual fees assessed
to the uranium recovery class is approximately $1.5 million.
Approximately $1.0 million of this amount will be assessed to DOE. The
remaining $0.5 million will be recovered through annual fees assessed
to conventional mills, in-situ leach solution mining facilities, and
11e.(2) mill tailings disposal facilities.
Consistent with the change in methodology adopted in the FY 2002
final fee rule (67 FR 42612; June 24, 2002), the total annual fee
amount, less the amounts specifically budgeted for Title I activities,
is allocated equally between Title I and Title II licensees. This
results in an annual fee being assessed to DOE to recover the costs
specifically budgeted for NRC's Title I activities plus 50 percent of
the remaining annual fee amount, including the surcharge, for the
uranium recovery class. The remaining surcharge, generic, and other
costs are assessed to the NRC Title II program licensees that are
subject to annual fees. The costs to be recovered through annual fees
assessed to the uranium recovery class are shown below. Due to
rounding, adding the individual numbers in the table may result in a
total that is slightly different than the one shown.
DOE Annual Fee Amount (UMTRCA Title I and Title II general
licenses):
UMTRCA Title I budgeted costs................................ $393,227
50% of generic/other uranium recovery budgeted costs....... 485,513
50% of uranium recovery surcharge.......................... 70,829
----------
Total Annual Fee Amount for DOE...................... 949,569
Annual Fee Amount for UMTRCA Title II Specific Licenses:
50% of generic/other uranium recovery budgeted costs..... 485,513
50% of uranium recovery surcharge........................ 70,829
----------
Total Annual Fee Amount for Title II Specific 556,342
Licenses............................................
The costs allocated to the various categories of Title II specific
licensees are based on the uranium recovery matrix established in the
FY 1999 final fee rule (64 FR 31448; June 10, 1999). The methodology
for establishing part 171 annual fees for Title II uranium recovery
licensees has not changed and is as follows:
(1) The methodology identifies three categories of licenses:
conventional uranium mills (Class I facilities), uranium solution
mining facilities (Class II facilities), and mill tailings disposal
facilities (11e.(2) disposal facilities). Each of these categories
benefits from the generic uranium recovery program efforts (e.g.,
rulemakings, staff guidance documents);
(2) The matrix relates the category and the level of benefit by
program element and subelement;
(3) The two major program elements of the generic uranium recovery
program are activities related to facility operations and those related
to facility closure;
(4) Each of the major program elements was further divided into
three subelements;
(5) The three major subelements of generic activities associated
with uranium facility operations are regulatory efforts related to the
operation of mills, handling and disposal of waste, and prevention of
groundwater contamination. The three major subelements of generic
activities associated with uranium facility closure are regulatory
efforts related to decommissioning of facilities and land clean-up,
reclamation and closure of tailings impoundments, and groundwater
clean-up. Weighted values were assigned to each program element and
subelement considering health and safety implications and the
associated effort to regulate these activities. The applicability of
the generic program in each subelement to each uranium recovery
category was qualitatively estimated as either significant, some,
minor, or none.
The relative weighted factors per facility type for the various
subclasses of specifically licensed Title II uranium recovery licensees
are as follows:
Table IX.--Weighted Factors for Uranium Recovery Licenses
----------------------------------------------------------------------------------------------------------------
Level of benefit total
Number of Category weight
Facility type facilities weight -----------------------
Value Percent
----------------------------------------------------------------------------------------------------------------
Class I (conventional mills).................................... 3 770 2,310 34
Class II (solution mining)...................................... 6 645 3,870 58
11e.(2) disposal................................................ 1 475 475 7
11e.(2) disposal incident to existing tailings sites............ 1 75 75 1
----------------------------------------------------------------------------------------------------------------
[[Page 36727]]
Applying these factors to the $0.5 million in budgeted costs to be
recovered from Title II specific licensees results in the following
revised annual fees:
Table X.--Annual Fees for Title II Specific Licenses
------------------------------------------------------------------------
FY 2003
Facility type annual
fee
------------------------------------------------------------------------
Class I (conventional mills)................................. $ 63,700
Class II (solution mining)................................... 53,300
11e.(2) disposal............................................. 39,300
11e.(2) disposal incidental to existing tailings sites....... 6,200
------------------------------------------------------------------------
In the FY 2001 final rule (66 FR 32478; June 14, 2001), the NRC
revised Sec. 171.19 to establish a quarterly billing schedule for the
Class I and Class II licensees, regardless of the annual fee amount.
Therefore, as provided in Sec. 171.19(b), if the amounts collected in
the first three quarters of FY 2003 exceed the amount of the revised
annual fee, the overpayment will be refunded; if the amounts collected
in the first three quarters are less than the final revised annual fee,
the remainder will be billed after the FY 2003 final fee rule is
published. The remaining categories of Title II facilities are subject
to billing based on the anniversary date of the license as provided in
Sec. 171.19(c).
c. Power Reactors. The approximately $305.0 million in budgeted
costs to be recovered through FY 2003 annual fees assessed to the power
reactor class, which includes NRC's budgeted costs for homeland
security activities related to power reactors, is divided equally among
the 104 power reactors licensed to operate. This results in a FY 2003
annual fee of $2,932,000 per reactor. Additionally, each power reactor
licensed to operate will be assessed the FY 2003 spent fuel storage/
reactor decommissioning annual fee of $319,000. This results in a total
FY 2003 annual fee of $3,251,000 for each power reactor licensed to
operate.
d. Spent Fuel Storage/Reactor Decommissioning. For FY 2003,
budgeted costs of approximately $38.6 million for spent fuel storage/
reactor decommissioning are to be recovered through annual fees
assessed to part 50 power reactors, and to part 72 licensees who do not
hold a part 50 license. Those reactor licensees that have ceased
operations and have no fuel onsite are not subject to these annual
fees. The costs are divided equally among the 121 licensees, resulting
in a FY 2003 annual fee of $319,000 per licensee.
e. Non-power Reactors. Approximately $253,000 in budgeted costs is
to be recovered through annual fees assessed to the non-power reactor
class of licenses for FY 2003. This amount is divided equally among the
four non-power reactors subject to annual fees. This results in a FY
2003 annual fee of $63,300 for each licensee.
f. Rare Earth Facilities. The FY 2003 budgeted costs of
approximately $187,000 for rare earth facilities to be recovered
through annual fees will be divided equally among the two licensees who
have a specific license for receipt and processing of source material.
Prior to the beginning of FY 2003, one rare earth facility permanently
ceased operations and requested that its license be amended to
authorize decommissioning activities only. Consequently, this license
is no longer subject to annual fees. The result is a FY 2003 annual fee
of $93,600 for each of the two remaining rare earth facilities.
g. Materials Users. To equitably and fairly allocate the $23.7
million in FY 2003 budgeted costs to be recovered in annual fees
assessed to the approximately 5,000 diverse materials users and
registrants, the NRC has continued to use the FY 1999 methodology to
establish baseline annual fees for this class. The annual fees are
based on the part 170 application fees and an estimated cost for
inspections. Because the application fees and inspection costs are
indicative of the complexity of the license, this approach continues to
provide a proxy for allocating the generic and other regulatory costs
to the diverse categories of licenses based on how much it costs the
NRC to regulate each category. The fee calculation also continues to
consider the inspection frequency (priority), which is indicative of
the safety risk and resulting regulatory costs associated with the
categories of licenses. The annual fee for these categories of licenses
is developed as follows:
Annual fee = Constant x [Application Fee + (Average Inspection Cost
divided by Inspection Priority)] + Inspection Multiplier x (Average
Inspection Cost divided by Inspection Priority) + Unique Category
Costs.
The constant is the multiple necessary to recover approximately
$18.0 million in general costs and is 1.18 for FY 2003. The inspection
multiplier is the multiple necessary to recover approximately $4.5
million in inspection costs for FY 2003, and is 0.92 for FY 2003. The
unique category costs are any special costs that the NRC has budgeted
for a specific category of licenses. For FY 2003, approximately $65,300
in budgeted costs for the implementation of revised part 35, Medical
Use of Byproduct Material (unique costs), has been allocated to holders
of NRC human use licenses.
The annual fee assessed to each licensee also includes a share of
the $800,000 in surcharge costs allocated to the materials user class
of licenses and, for certain categories of these licenses, a share of
the approximately $500,000 in LLW surcharge costs allocated to the
class. The annual fee for each fee category is shown in Sec.
171.16(d).
h. Transportation. Of the approximately $5.0 million in FY 2003
budgeted costs to be recovered through annual fees assessed to the
transportation class of licenses (including homeland security costs),
approximately $1.4 million will be recovered from annual fees assessed
to DOE based on the number of part 71 Certificates of Compliance that
it holds. Of the remaining $3.6 million, approximately 25 percent is
allocated to the 89 quality assurance plans authorizing use only and
the 40 quality assurance plans authorizing use and design/fabrication.
The remaining 75 percent is allocated only to the 40 quality assurance
plans authorizing use and design/fabrication. This results in an annual
fee of $7,100 for each of the holders of quality assurance plans that
authorize use only, and an annual fee of $76,200 for each of the
holders of quality assurance plans that authorize use and design/
fabrication.
2. Small Entity Annual Fees
The NRC stated in the FY 2001 fee rule (66 FR 32452; June 14,
2001), that it would re-examine the small entity fees every two years,
in the same years in which it conducts the biennial review of fees as
required by the CFO Act. Accordingly, the NRC has re-examined the small
entity fees, and does not believe that a change to the small entity
fees is warranted for FY 2003. The revision to the small entity fees in
FY 2000 (65 FR 36946; June 12, 2000) was based on the 25 percent
increase in average total fees assessed to other materials licensees in
selected categories since the small entity fees were first established
and changes that had occurred in the fee structure for materials
licensees over time.
Unlike the annual fees assessed to other licensees, the small
entity fees are not designed to recover the agency costs associated
with particular licensees. Instead, the reduced fees for small entities
are designed to provide some fee relief for qualifying small entity
licensees while at the same time recovering from them some of the
agency's costs for activities that benefit
[[Page 36728]]
them. The costs not recovered from small entities for activities that
benefit them must be recovered from other licensees. Given the
reduction in annual fees and the relative low inflation rates, the NRC
has determined that the current small entity fees of $500 and $2,300
continue to meet the objective of providing relief to many small
entities while recovering from them some of the costs that benefit
them.
Therefore, the NRC is retaining the $2,300 small entity annual fee
and the $500 lower tier small entity annual fee for FY 2003. The NRC
plans to re-examine the small entity fees again in FY 2005.
In summary, the NRC has--
1. Established rebaselined annual fees for FY 2003;
2. Retained the current reduced fees for small entities.
IV. Voluntary Consensus Standards
The National Technology Transfer and Advancement Act of 1995, Pub.
L. 104-113, requires that Federal agencies use technical standards that
are developed or adopted by voluntary consensus standards bodies unless
using such a standard is inconsistent with applicable law or is
otherwise impractical. In this final rule, the NRC is amending the
licensing, inspection, and annual fees charged to its licensees and
applicants as necessary to recover approximately 94 percent of its
budget authority in FY 2003 as is required by the Omnibus Budget
Reconciliation Act of 1990, as amended. This action does not constitute
the establishment of a standard that contains generally applicable
requirements.
V. Environmental Impact: Categorical Exclusion
The NRC has determined that this final rule is the type of action
described in categorical exclusion 10 CFR 51.22(c)(1). Therefore,
neither an environmental assessment nor an environmental impact
statement has been prepared for the final regulation. By its very
nature, this regulatory action does not affect the environment and,
therefore, no environmental justice issues are raised.
VI. Paperwork Reduction Act Statement
This final rule does not contain information collection
requirements and, therefore, is not subject to the requirements of the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).
VII. Regulatory Analysis
With respect to 10 CFR Part 170, this final rule was developed
pursuant to Title V of the Independent Offices Appropriation Act of
1952 (IOAA) (31 U.S.C. 9701) and the Commission's fee guidelines. When
developing these guidelines the Commission took into account guidance
provided by the U.S. Supreme Court on March 4, 1974, in National Cable
Television Association, Inc. v. United States, 415 U.S. 36 (1974) and
Federal Power Commission v. New England Power Company, 415 U.S. 345
(1974). In these decisions, the Court held that the IOAA authorizes an
agency to charge fees for special benefits rendered to identifiable
persons measured by the ``value to the recipient'' of the agency
service. The meaning of the IOAA was further clarified on December 16,
1976, by four decisions of the U.S. Court of Appeals for the District
of Columbia: National Cable Television Association v. Federal
Communications Commission, 554 F.2d 1094 (D.C. Cir. 1976); National
Association of Broadcasters v. Federal Communications Commission, 554
F.2d 1118 (D.C. Cir. 1976); Electronic Industries Association v.
Federal Communications Commission, 554 F.2d 1109 (D.C. Cir. 1976); and
Capital Cities Communication, Inc. v. Federal Communications
Commission, 554 F.2d 1135 (D.C. Cir. 1976). The Commission's fee
guidelines were developed based on these legal decisions.
The Commission's fee guidelines were upheld on August 24, 1979, by
the U.S. Court of Appeals for the Fifth Circuit in Mississippi Power
and Light Co. v. U.S. Nuclear Regulatory Commission, 601 F.2d 223 (5th
Cir. 1979), cert. denied, 444 U.S. 1102 (1980). This court held that--
(1) The NRC had the authority to recover the full cost of providing
services to identifiable beneficiaries;
(2) The NRC could properly assess a fee for the costs of providing
routine inspections necessary to ensure a licensee's compliance with
the Atomic Energy Act and with applicable regulations;
(3) The NRC could charge for costs incurred in conducting
environmental reviews required by NEPA;
(4) The NRC properly included the costs of uncontested hearings and
of administrative and technical support services in the fee schedule;
(5) The NRC could assess a fee for renewing a license to operate a
low-level radioactive waste burial site; and
(6) The NRC's fees were not arbitrary or capricious.
With respect to 10 CFR Part 171, on November 5, 1990, the Congress
passed Pub. L. 101-508, the Omnibus Budget Reconciliation Act of 1990
(OBRA-90), which required that, for FYs 1991 through 1995,
approximately 100 percent of the NRC budget authority be recovered
through the assessment of fees. OBRA-90 was subsequently amended to
extend the 100 percent fee recovery requirement through FY 2000. The FY
2001 Energy and Water Development Appropriations Act amended OBRA-90 to
decrease the NRC's fee recovery amount by 2 percent per year beginning
in FY 2001, until the fee recovery amount is 90 percent in FY 2005. The
NRC's fee recovery amount for FY 2003 is 94 percent. To comply with
this statutory requirement and in accordance with Sec. 171.13, the NRC
is publishing the amount of the FY 2003 annual fees for reactor
licensees, fuel cycle licensees, materials licensees, and holders of
Certificates of Compliance, registrations of sealed source and devices
and QA program approvals, and Government agencies. OBRA-90, consistent
with the accompanying Conference Committee Report, and the amendments
to OBRA-90, provides that--
(1) The annual fees be based on approximately 94 percent of the
Commission's FY 2003 budget of $584.6 million less the amounts
collected from part 170 fees and funds directly appropriated from the
NWF to cover the NRC's high level waste program;
(2) The annual fees shall, to the maximum extent practicable, have
a reasonable relationship to the cost of regulatory services provided
by the Commission; and
(3) The annual fees be assessed to those licensees the Commission,
in its discretion, determines can fairly, equitably, and practicably
contribute to their payment.
10 CFR Part 171, which established annual fees for operating power
reactors effective October 20, 1986 (51 FR 33224; September 18, 1986),
was challenged and upheld in its entirety in Florida Power and Light
Company v. United States, 846 F.2d 765 (D.C. Cir. 1988), cert. denied,
490 U.S. 1045 (1989). Further, the NRC's FY 1991 annual fee rule
methodology was upheld by the D.C. Circuit Court of Appeals in Allied
Signal v. NRC, 988 F.2d 146 (D.C. Cir. 1993).
VIII. Regulatory Flexibility Analysis
The NRC is required by the Omnibus Budget Reconciliation Act of
1990, as amended, to recover approximately 94 percent of its FY 2003
budget authority through the assessment of user fees. This act further
requires that the NRC establish a schedule of charges that
[[Page 36729]]
fairly and equitably allocates the aggregate amount of these charges
among licensees.
This final rule establishes the schedules of fees that are
necessary to implement the Congressional mandate for FY 2003. The final
rule will result in increases in the annual fees charged to certain
licensees and holders of certificates, registrations, and approvals,
and decreases in annual fees for others. Licensees affected by the
annual fee increases and decreases include those that qualify as a
small entity under NRC's size standards in 10 CR 2.810. The Regulatory
Flexibility Analysis, prepared in accordance with 5 U.S.C. 604, is
included as Appendix A to this final rule.
The Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA) was signed into law on March 29, 1996. The SBREFA requires all
Federal agencies to prepare a written compliance guide for each rule
for which the agency is required by 5 U.S.C. 604 to prepare a
regulatory flexibility analysis. Therefore, in compliance with the law,
Attachment 1 to the Regulatory Flexibility Analysis is the small entity
compliance guide for FY 2003.
IX. Backfit Analysis
The NRC has determined that the backfit rule, 10 CFR 50.109, does
not apply to this final rule and that a backfit analysis is not
required for this final rule. The backfit analysis is not required
because these amendments do not require the modification of or
additions to systems, structures, components, or the design of a
facility or the design approval or manufacturing license for a facility
or the procedures or organization required to design, construct, or
operate a facility.
X. Small Business Regulatory Enforcement Fairness Act
In accordance with the Small Business Regulatory Enforcement
Fairness Act of 1996, Pub. L. 104-121, the NRC has determined that this
action is a major rule and has verified the determination with the
Office of Information and Regulatory Affairs of the Office of
Management and Budget.
List of Subjects
10 CFR Part 170
Byproduct material, Import and export licenses, Intergovernmental
relations, Non-payment penalties, Nuclear materials, Nuclear power
plants and reactors, Source material, Special nuclear material.
10 CFR Part 171
Annual charges, Byproduct material, Holders of certificates,
Registrations, Approvals, Intergovernmental relations, Non-payment
penalties, Nuclear materials, Nuclear power plants and reactors, Source
material, Special nuclear material.
0
For the reasons set out in the preamble and under the authority of the
Atomic Energy Act of 1954, as amended; the Energy Reorganization Act of
1974, as amended; and 5 U.S.C. 552 and 553, the NRC is adopting the
following amendments to 10 CFR Parts 170 and 171.
PART 170--FEES FOR FACILITIES, MATERIALS, IMPORT AND EXPORT
LICENSES, AND OTHER REGULATORY SERVICES UNDER THE ATOMIC ENERGY ACT
OF 1954, AS AMENDED
0
1. The authority citation for part 170 continues to read as follows:
Authority: Sec. 9701, Pub. L. 97-258, 96 Stat. 1051 (31 U.S.C.
9701); sec. 301, Pub. L. 92-314, 86 Stat. 227 (42 U.S.C. 2201w);
sec. 201, Pub. L. 93-438, 88 Stat. 1242, as amended (42 U.S.C.
5841); sec. 205a, Pub. L. 101-576, 104 Stat. 2842, as amended (31
U.S.C. 901, 902).
0
2. Section 170.20 is revised to read as follows:
Sec. 170.20 Average cost per professional staff-hour.
Fees for permits, licenses, amendments, renewals, special projects,
part 55 re-qualification and replacement examinations and tests, other
required reviews, approvals, and inspections under Sec. Sec. 170.21
and 170.31 will be calculated using the following applicable
professional staff-hour rates:
(a) Reactor Program (Sec. 170.21 Activities): $156 per hour
(b) Nuclear Materials and Nuclear Waste Program (Sec. 170.31
Activities): $158 per hour
0
3. In Sec. 170.21, Category K in the table is revised to read as
follows:
Sec. 170.21 Schedule of fees for production and utilization
facilities, review of standard referenced design approvals, special
projects, inspections and import and export licenses.
* * * * *
Schedule of Facility Fees
[See footnotes at end of table]
------------------------------------------------------------------------
Facility categories and type of fees Fees \1,2\
------------------------------------------------------------------------
* * * * * * *
K. Import and export licenses:
Licenses for the import and export only of
production and utilization facilities or the export
only of components for production and utilization
facilities issued under 10 CFR Part 110:
1. Application for import or export of reactors
and other facilities and exports of components
which must be reviewed by the Commissioners and
the Executive Branch, for example, actions
under 10 CFR 110.40(b). This category includes
application for import of radioactive waste.
Application-new license..................... $10,300
Amendment................................... $10,300
2. Application for export of reactor and other
components requiring Executive Branch review
only, for example, those actions under 10 CFR
110.41(a)(1)-(8). This category includes
application for the export of radioactive
waste.
Application-new license..................... $6,000
Amendment................................... $6,000
3. Application for export of components
requiring foreign government assurances only.
Application-new license..................... $1,900
Amendment................................... $1,900
4. Application for export of facility components
and equipment not requiring Commissioner
review, Executive Branch review, or foreign
government assurances.
Application-new license..................... $1,300
Amendment................................... $1,300
[[Page 36730]]
5. Minor amendment of any export or import
license to extend the expiration date, change
domestic information, or make other revisions
which do not require in-depth analysis or
review.
Amendment................................... $240
------------------------------------------------------------------------
\1\ Fees will not be charged for orders issued by the Commission under
Sec. 2.202 of this chapter or for amendments resulting specifically
from the requirements of these types of Commission orders. Fees will
be charged for approvals issued under a specific exemption provision
of the Commission's regulations under Title 10 of the Code of Federal
Regulations (e.g., 10 CFR 50.12, 73.5) and any other sections in
effect now or in the future, regardless of whether the approval is in
the form of a license amendment, letter of approval, safety evaluation
report, or other form. Fees for licenses in this schedule that are
initially issued for less than full power are based on review through
the issuance of a full power license (generally full power is
considered 100 percent of the facility's full rated power). Thus, if a
licensee received a low power license or a temporary license for less
than full power and subsequently receives full power authority (by way
of license amendment or otherwise), the total costs for the license
will be determined through that period when authority is granted for
full power operation. If a situation arises in which the Commission
determines that full operating power for a particular facility should
be less than 100 percent of full rated power, the total costs for the
license will be at that determined lower operating power level and not
at the 100 percent capacity.
\2\ Full cost fees will be determined based on the professional staff
time and appropriate contractual support services expended. For
applications currently on file and for which fees are determined based
on the full cost expended for the review, the professional staff hours
expended for the review of the application up to the effective date of
the final rule will be determined at the professional rates in effect
at the time the service was provided. For those applications currently
on file for which review costs have reached an applicable fee ceiling
established by the June 20, 1984, and July 2, 1990, rules, but are
still pending completion of the review, the cost incurred after any
applicable ceiling was reached through January 29, 1989, will not be
billed to the applicant. Any professional staff-hours expended above
those ceilings on or after January 30, 1989, will be assessed at the
applicable rates established by Sec. 170.20, as appropriate, except
for topical reports whose costs exceed $50,000. Costs which exceed
$50,000 for any topical report, amendment, revision or supplement to a
topical report completed or under review from January 30, 1989,
through August 8, 1991, will not be billed to the applicant. Any
professional hours expended on or after August 9, 1991, will be
assessed at the applicable rate established in Sec. 170.20.
* * * * *
0
4. Section 170.31 is revised to read as follows:
Sec. 170.31 Schedule of fees for materials licenses and other
regulatory services, including inspections, and import and export
licenses.
Applicants for materials licenses, import and export licenses, and
other regulatory services, and holders of materials licenses or import
and export licenses shall pay fees for the following categories of
services. The following schedule includes fees for health and safety
and safeguards inspections where applicable:
Schedule of Materials Fees
[See footnotes at end of table]
------------------------------------------------------------------------
Category of materials licenses and type of
fees\1\ Fee 2,3
------------------------------------------------------------------------
1. Special nuclear material:
A. Licenses for possession and use of 200
grams or more of plutonium in unsealed
form or 350 grams or more of contained U-
235 in unsealed form or 200 grams or more
of U-233 in unsealed form. This includes
applications to terminate licenses as well
as licenses authorizing possession only:
Licensing and Inspection............... Full Cost.
B. Licenses for receipt and storage of
spent fuel and reactor-related Greater
than Class C (GTCC) waste at an
independent spent fuel storage
installation (ISFSI):
Licensing and inspection............... Full Cost.
C. Licenses for possession and use of
special nuclear material in sealed sources
contained in devices used in industrial
measuring systems, including x-ray
fluorescence analyzers:\4\
Application............................ $730.
D. All other special nuclear material
licenses, except licenses authorizing
special nuclear material in unsealed form
in combination that would constitute a
critical quantity, as defined in Sec.
150.11 of this chapter, for which the
licensee shall pay the same fees as those
for Category 1A:\4\
Application............................ $1,500.
E. Licenses or certificates for
construction and operation of a uranium
enrichment facility:
Licensing and inspection............... Full Cost.
2. Source material:
A. (1) Licenses for possession and use of
source material in recovery operations
such as milling, in-situ leaching, heap-
leaching, refining uranium mill
concentrates to uranium hexafluoride, ore
buying stations, and ion exchange
facilities, and in processing of ores
containing source material for extraction
of metals other than uranium or thorium,
including licenses authorizing the
possession of byproduct waste material
(tailings) from source material recovery
operations, as well as licenses
authorizing the possession and maintenance
of a facility in a standby mode:
Licensing and inspection............... Full Cost.
(2) Licenses that authorize the receipt of
byproduct material, as defined in Section
11e(2) of the Atomic Energy Act, from
other persons for possession and disposal
except those licenses subject to fees in
Category 2A(1):
Licensing and inspection............... Full Cost
(3) Licenses that authorize the receipt of
byproduct material, as defined in Section
11e.(2) of the Atomic Energy Act, from
other persons for possession and disposal
incidental to the disposal of the uranium
waste tailings generated by the licensee's
milling operations, except those licenses
subject to the fees in Category 2A(1):
Licensing and inspection............... Full Cost.
B. Licenses which authorize the possession,
use, and/or installation of source
material for shielding:
Application............................ $170.
[[Page 36731]]
C. All other source material licenses:
Application............................ $6,200
3. Byproduct material:
A. Licenses of broad scope for the
possession and use of byproduct material
issued under parts 30 and 33 of this
chapter for processing or manufacturing of
items containing byproduct material for
commercial distribution:
Application............................ $7,400.
B. Other licenses for possession and use of
byproduct material issued under part 30 of
this chapter for processing or
manufacturing of items containing
byproduct material for commercial
distribution:
Application............................ $2,900.
C. Licenses issued under Sec. Sec.
32.72, 32.73, and/or 32.74 of this chapter
that authorize the processing or
manufacturing and distribution or
redistribution of radiopharmaceuticals,
generators, reagent kits, and/or sources
and devices containing byproduct material.
This category does not apply to licenses
issued to nonprofit educational
institutions whose processing or
manufacturing is exempt under Sec.
170.11(a)(4). These licenses are covered
by fee Category 3D.
Application............................ $6,100.
D. Licenses and approvals issued under Sec.
Sec. 32.72, 32.73, and/or 32.74 of this
chapter authorizing distribution or
redistribution of radiopharmaceuticals,
generators, reagent kits, and/or sources
or devices not involving processing of
byproduct material. This category includes
licenses issued under Sec. Sec. 32.72,
32.73, and/or 32.74 of this chapter to
nonprofit educational institutions whose
processing or manufacturing is exempt
under Sec. 170.11(a)(4).
Application............................ $2,700.
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):
Application............................ $1,800.
F. Licenses for possession and use of less
than 10,000 curies of byproduct material
in sealed sources for irradiation of
materials in which the source is exposed
for irradiation purposes. This category
also includes underwater irradiators for
irradiation of materials where the source
is not exposed for irradiation purposes.
Application............................ $3,700.
G. Licenses for possession and use of
10,000 curies or more of byproduct
material in sealed sources for irradiation
of materials in which the source is
exposed for irradiation purposes. This
category also includes underwater
irradiators for irradiation of materials
where the source is not exposed for
irradiation purposes.
Application............................ $8,800.
H. Licenses issued under Subpart A of part
32 of this chapter to distribute items
containing byproduct material that require
device review to persons exempt from the
licensing requirements of part 30 of this
chapter. The category does not include
specific licenses authorizing
redistribution of items that have been
authorized for distribution to persons
exempt from the licensing requirements of
part 30 of this chapter:
Application............................ $4,300.
I. Licenses issued under Subpart A of part
32 of this chapter to distribute items
containing byproduct material or
quantities of byproduct material that do
not require device evaluation to persons
exempt from the licensing requirements of
part 30 of this chapter. This category
does not include specific licenses
authorizing redistribution of items that
have been authorized for distribution to
persons exempt from the licensing
requirements of part 30 of this chapter:
Application............................ $4,300.
J. Licenses issued under Subpart B of part
32 of this chapter to distribute items
containing byproduct material that require
sealed source and/or device review to
persons generally licensed under part 31
of this chapter. This category does not
include specific licenses authorizing
redistribution of items that have been
authorized for distribution to persons
generally licensed under part 31 of this
chapter:
Application............................ $1,100.
K. Licenses issued under Subpart B of part
32 of this chapter to distribute items
containing byproduct material or
quantities of byproduct material that do
not require sealed source and/or device
review to persons generally licensed under
part 31 of this chapter. This category
does not include specific licenses
authorizing redistribution of items that
have been authorized for distribution to
persons generally licensed under part 31
of this chapter:
Application............................ $650.
L. Licenses of broad scope for possession
and use of byproduct material issued under
parts 30 and 33 of this chapter for
research and development that do not
authorize commercial distribution:
Application............................ $6,200
M. Other licenses for possession and use of
byproduct material issued under part 30 of
this chapter for research and development
that do not authorize commercial
distribution:
Application............................ $3,000.
N. Licenses that authorize services for
other licensees, except:
(1) Licenses that authorize only
calibration and/or leak testing
services are subject to the fees
specified in fee Category 3P; and (2)
Licenses that authorize waste disposal
services are subject to the fees
specified in fee Categories 4A, 4B,
and 4C:
Application........................ $3,300.
O. Licenses for possession and use of
byproduct material issued under part 34 of
this chapter for industrial radiography
operations:
Application............................ $3,300.
P. All other specific byproduct material
licenses, except those in Categories 4A
through 9D:
Registration........................... $1,200.
Q. Registration of a device(s) generally
licensed under part 31 of this chapter:
Application............................ $620.
[[Page 36732]]
4. Waste disposal and processing:
A. Licenses specifically authorizing the
receipt of waste byproduct material,
source material, or special nuclear
material from other persons for the
purpose of contingency storage or
commercial land disposal by the licensee;
or licenses authorizing contingency
storage of low-level radioactive waste at
the site of nuclear power reactors; or
licenses for receipt of waste from other
persons for incineration or other
treatment, packaging of resulting waste
and residues, and transfer of packages to
another person authorized to receive or
dispose of waste material:
Licensing and inspection............... Full Cost.
B. Licenses specifically authorizing the
receipt of waste byproduct material,
source material, or special nuclear
material from other persons for the
purpose of packaging or repackaging the
material. The licensee will dispose of the
material by transfer to another person
authorized to receive or dispose of the
material:
Application............................ $1,900.
C. Licenses specifically authorizing the
receipt of prepackaged waste byproduct
material, source material, or special
nuclear material from other persons. The
licensee will dispose of the material by
transfer to another person authorized to
receive or dispose of the material:
Application............................ $2,800.
5. Well logging:
A. Licenses for possession and use of
byproduct material, source material, and/
or special nuclear material for well
logging, well surveys, and tracer studies
other than field flooding tracer studies:
Application............................ $2,000.
B. Licenses for possession and use of
byproduct material for field flooding
tracer studies:
Licensing.............................. Full Cost.
6. Nuclear laundries:
A. Licenses for commercial collection and
laundry of items contaminated with
byproduct material, source material, or
special nuclear material:
Application............................ $12,600.
7. Medical licenses:
A. Licenses issued under parts 30, 35, 40,
and 70 of this chapter for human use of
byproduct material, source material, or
special nuclear material in sealed sources
contained in teletherapy devices:
Application............................ $6,900.
B. Licenses of broad scope issued to
medical institutions or two or more
physicians under parts 30, 33, 35, 40, and
70 of this chapter authorizing research
and development, including human use of
byproduct material, except licenses for
byproduct material, source material, or
special nuclear material in sealed sources
contained in teletherapy devices:
Application............................ $4,900.
C. Other licenses issued under parts 30,
35, 40, and 70 of this chapter for human
use of byproduct material, source
material, and/or special nuclear material,
except licenses for byproduct material,
source material, or special nuclear
material in sealed sources contained in
teletherapy devices:
Application............................ $1,900.
8. Civil defense:
A. Licenses for possession and use of
byproduct material, source material, or
special nuclear material for civil defense
activities:
Application............................ $360.
9. Device, product, or sealed source safety
evaluation:
A. Safety evaluation of devices or products
containing byproduct material, source
material, or special nuclear material,
except reactor fuel devices, for
commercial distribution:
Application--each device............... $5,700.
B. Safety evaluation of devices or products
containing byproduct material, source
material, or special nuclear material
manufactured in accordance with the unique
specifications of, and for use by, a
single applicant, except reactor fuel
devices:
Application--each device............... $5,700.
C. Safety evaluation of sealed sources
containing byproduct material, source
material, or special nuclear material,
except reactor fuel, for commercial
distribution:
Application--each source............... $1,800.
D. Safety evaluation of sealed sources
containing byproduct material, source
material, or special nuclear material,
manufactured in accordance with the unique
specifications of, and for use by, a
single applicant, except reactor fuel:
Application--each source............... $600.
10. Transportation of radioactive material:
A. Evaluation of casks, packages, and
shipping containers:
Licensing and inspections.............. Full Cost.
B. Evaluation of 10 CFR Part 71 quality
assurance programs:
Application............................ $2,100.
Inspections............................ Full Cost.
11. Review of standardized spent fuel
facilities:
Licensing and inspection................... Full Cost.
12. Special projects:
Approvals and preapplication/Licensing Full Cost.
activities.
Inspections................................ Full Cost.
13. A. Spent fuel storage cask Certificate of
Compliance:
Licensing.................................. Full Cost.
B. Inspections related to spent fuel Full Cost.
storage cask Certificate of Compliance.
C. Inspections related to storage of spent Full Cost.
fuel under Sec. 72.210 of this chapter.
[[Page 36733]]
14. Byproduct, source, or special nuclear
material licenses and other approvals
authorizing decommissioning, decontamination,
reclamation, or site restoration activities
under parts 30, 40, 70, 72, and 76 of this
chapter:
Licensing and inspection................... Full Cost.
15. Import and Export licenses:
Licenses issued under part 110 of this
chapter for the import and export only of
special nuclear material, source material,
tritium and other byproduct material,
heavy water, or nuclear grade graphite.
A. Application for export or import of
high enriched uranium and other
materials, including radioactive
waste, which must be reviewed by the
Commissioners and the Executive
Branch, for example, those actions
under 10 CFR 110.40(b). This category
includes application for import of
radioactive waste.
Application--new license........... $10,300.
Amendment.......................... $10,300.
B. Application for export or import of
special nuclear material, source
material, tritium and other byproduct
material, heavy water, or nuclear
grade graphite, including radioactive
waste, requiring Executive Branch
review but not Commissioner review.
This category includes application for
the export of radioactive waste.
Application--new license........... $6,000.
Amendment.......................... $6,000.
C. Application for export of routine
reloads of low enriched uranium
reactor fuel and exports of source
material requiring only foreign
government assurances under the Atomic
Energy Act.
Application--new license........... $1,900.
Amendment.......................... $1,900.
D. Application for export or import of
other materials, including radioactive
waste, not requiring Commissioner
review, Executive Branch review, or
foreign government assurances under
the Atomic Energy Act. This category
includes application for export or
import of radioactive waste where the
NRC has previously authorized the
export or import of the same form of
waste to or from the same or similar
parties, requiring only confirmation
from the receiving facility and
licensing authorities that the
shipments may proceed according to
previously agreed understandings and
procedures.
Application--new license........... $1,300.
Amendment.......................... $1,300.
E. Minor amendment of any export or
import license to extend the
expiration date, change domestic
information, or make other revisions
which do not require in-depth
analysis, review, or consultations
with other agencies or foreign
governments.
Amendment.......................... $240.
16. Reciprocity:
Agreement State licensees who conduct
activities under the reciprocity
provisions of 10 CFR 150.20.
Application............................ $1,500.
------------------------------------------------------------------------
\1\ Types of fees--Separate charges, as shown in the schedule, will be
assessed for pre-application consultations and reviews and
applications for new licenses and approvals, issuance of new licenses
and approvals, certain amendments and renewals to existing licenses
and approvals, safety evaluations of sealed sources and devices,
generally licensed device registrations, and certain inspections. The
following guidelines apply to these charges:
(a) Application and registration fees. Applications for new materials
licenses and export and import licenses; applications to reinstate
expired, terminated, or inactive licenses except those subject to fees
assessed at full costs; applications filed by Agreement State
licensees to register under the general license provisions of 10 CFR
150.20; and applications for amendments to materials licenses that
would place the license in a higher fee category or add a new fee
category must be accompanied by the prescribed application fee for
each category.
(1) Applications for licenses covering more than one fee category of
special nuclear material or source material must be accompanied by the
prescribed application fee for the highest fee category.
(2) Applications for new licenses that cover both byproduct material and
special nuclear material in sealed sources for use in gauging devices
will pay the appropriate application fee for fee Category 1C only.
(b) Licensing fees. Fees for reviews of applications for new licenses
and for renewals and amendments to existing licenses, for pre-
application consultations and for reviews of other documents submitted
to NRC for review, and for project manager time for fee categories
subject to full cost fees (fee Categories 1A, 1B, 1E, 2A, 4A, 5B, 10A,
11, 12, 13A, and 14) are due upon notification by the Commission in
accordance with Sec. 170.12(b).
(c) Amendment fees. Applications for amendments to export and import
licenses must be accompanied by the prescribed amendment fee for each
license affected. An application for an amendment to a license or
approval classified in more than one fee category must be accompanied
by the prescribed amendment fee for the category affected by the
amendment unless the amendment is applicable to two or more fee
categories, in which case the amendment fee for the highest fee
category would apply.
(d) Inspection fees. Inspections resulting from investigations conducted
by the Office of Investigations and non-routine inspections that
result from third-party allegations are not subject to fees.
Inspection fees are due upon notification by the Commission in
accordance with Sec. 170.12(c).
(e) Generally licensed device registrations under 10 CFR 31.5.
Submittals of registration information must be accompanied by the
prescribed fee.
\2\ Fees will not be charged for orders issued by the Commission under
10 CFR 2.202 or for amendments resulting specifically from the
requirements of these types of Commission orders. However, fees will
be charged for approvals issued under a specific exemption provision
of the Commission's regulations under Title 10 of the Code of Federal
Regulations (e.g., 10 CFR 30.11, 40.14, 70.14, 73.5, and any other
sections in effect now or in the future), regardless of whether the
approval is in the form of a license amendment, letter of approval,
safety evaluation report, or other form. In addition to the fee shown,
an applicant may be assessed an additional fee for sealed source and
device evaluations as shown in Categories 9A through 9D.
\3\ Full cost fees will be determined based on the professional staff
time multiplied by the appropriate professional hourly rate
established in Sec. 170.20 in effect at the time the service is
provided, and the appropriate contractual support services expended.
For applications currently on file for which review costs have reached
an applicable fee ceiling established by the June 20, 1984, and July
2, 1990, rules, but are still pending completion of the review, the
cost incurred after any applicable ceiling was reached through January
29, 1989, will not be billed to the applicant. Any professional staff-
hours expended above those ceilings on or after January 30, 1989, will
be assessed at the applicable rates established by Sec. 170.20, as
appropriate, except for topical reports whose costs exceed $50,000.
Costs which exceed $50,000 for each topical report, amendment,
revision, or supplement to a topical report completed or under review
from January 30, 1989, through August 8, 1991, will not be billed to
the applicant. Any professional hours expended on or after August 9,
1991, will be assessed at the applicable rate established in Sec.
170.20.
\4\ Licensees paying fees under Categories 1A, 1B, and 1E are not
subject to fees under Categories 1C and 1D for sealed sources
authorized in the same license except for an application that deals
only with the sealed sources authorized by the license.
[[Page 36734]]
PART 171--ANNUAL FEES FOR REACTOR LICENSES AND FUEL CYCLE LICENSES
AND MATERIAL LICENSES, INCLUDING HOLDERS OF CERTIFICATES OF
COMPLIANCE, REGISTRATIONS, AND QUALITY ASSURANCE PROGRAM APPROVALS
AND GOVERNMENT AGENCIES LICENSED BY THE NRC
0
5. The authority citation for part 171 continues to read as follows:
Authority: Sec. 7601, Pub. L. 99-272, 100 Stat. 146, as amended
by sec. 5601, Pub. L. 100-203, 101 Stat. 1330, as amended by sec.
3201, Pub. L. 101-239, 103 Stat. 2132, as amended by sec. 6101, Pub.
L. 101-508, 104 Stat. 1388, as amended by sec. 2903a, Pub. L. 102-
486, 106 Stat. 3125 (42 U.S.C. 2213, 2214); sec. 301, Pub. L. 92-
314, 86 Stat. 227 (42 U.S.C. 2201w); sec. 201, Pub. L. 93-438, 88
Stat. 1242, as amended (42 U.S.C. 5841).
0
6. In Sec. 171.15 paragraphs (b), (c), (d), and (e) are revised to
read as follows:
Sec. 171.15 Annual Fees: Reactor licenses and independent spent fuel
storage licenses.
* * * * *
(b)(1) The FY 2003 annual fee for each operating power reactor
which must be collected by September 30, 2003, is $3,251,000.
(2) The FY 2003 annual fee is comprised of a base annual fee for
power reactors licensed to operate, a base spent fuel storage/reactor
decommissioning annual fee, and associated additional charges
(surcharges). The activities comprising the FY 2003 spent storage/
reactor decommissioning base annual fee are shown in paragraph
(c)(2)(i) and (ii) of this section. The activities comprising the FY
2003 surcharge are shown in paragraph (d)(1) of this section. The
activities comprising the FY 2003 base annual fee for operating power
reactors are as follows:
(i) Power reactor safety and safeguards regulation except licensing
and inspection activities recovered under part 170 of this chapter and
generic reactor decommissioning activities.
(ii) Research activities directly related to the regulation of
power reactors, except those activities specifically related to reactor
decommissioning.
(iii) Generic activities required largely for NRC to regulate power
reactors, e.g., updating part 50 of this chapter, or operating the
Incident Response Center. The base annual fee for operating power
reactors does not include generic activities specifically related to
reactor decommissioning.
(c)(1) The FY 2003 annual fee for each power reactor holding a part
50 license that is in a decommissioning or possession only status and
has spent fuel on-site and each independent spent fuel storage part 72
licensee who does not hold a part 50 license is $319,000.
(2) The FY 2003 annual fee is comprised of a base spent fuel
storage/reactor decommissioning annual fee (which is also included in
the operating power reactor annual fee shown in paragraph (b) of this
section), and an additional charge (surcharge). The activities
comprising the FY 2003 surcharge are shown in paragraph (d)(1) of this
section. The activities comprising the FY 2003 spent fuel storage/
reactor decommissioning rebaselined annual fee are:
(i) Generic and other research activities directly related to
reactor decommissioning and spent fuel storage; and
(ii) Other safety, environmental, and safeguards activities related
to reactor decommissioning and spent fuel storage, except costs for
licensing and inspection activities that are recovered under part 170
of this chapter.
(d)(1) The activities comprising the FY 2003 surcharge are as
follows:
(i) Low level waste disposal generic activities;
(ii) Activities not attributable to an existing NRC licensee or
class of licenses (e.g., international cooperative safety program and
international safeguards activities, support for the Agreement State
program, and site decommissioning management plan (SDMP) activities);
and
(iii) Activities not currently subject to 10 CFR part 170 licensing
and inspection fees based on existing law or Commission policy, e.g.,
reviews and inspections conducted of nonprofit educational
institutions, licensing actions for Federal agencies, and costs that
would not be collected from small entities based on Commission policy
in accordance with the Regulatory Flexibility Act, 5 U.S.C. 601 et seq.
(2) The total FY 2003 surcharge allocated to the operating power
reactor class of licenses is $19.1 million, not including the amount
allocated to the spent fuel storage/reactor decommissioning class. The
FY 2003 operating power reactor surcharge to be assessed to each
operating power reactor is approximately $183,300. This amount is
calculated by dividing the total operating power reactor surcharge
($19.1 million) by the number of operating power reactors (104).
(3) The FY 2003 surcharge allocated to the spent fuel storage/
reactor decommissioning class of licenses is $1.8 million. The FY 2003
spent fuel storage/reactor decommissioning surcharge to be assessed to
each operating power reactor, each power reactor in decommissioning or
possession only status that has spent fuel onsite, and to each
independent spent fuel storage part 72 licensee who does not hold a
part 50 license is approximately $14,900. This amount is calculated by
dividing the total surcharge costs allocated to this class by the total
number of power reactor licenses, except those that permanently ceased
operations and have no fuel on site, and part 72 licensees who do not
hold a part 50 license.
(e) The FY 2003 annual fees for licensees authorized to operate a
non-power (test and research) reactor licensed under part 50 of this
chapter, unless the reactor is exempted from fees under Sec.
171.11(a), are as follows:
Research reactor.............................................. $63,300
Test reactor.................................................. $63,300
0
7. In Sec. 171.16, paragraphs (c), (d), and (e) are revised to read as
follows:
Sec. 171.16 Annual Fees: Materials Licensees, Holders of Certificates
of Compliance, Holders of Sealed Source and Device Registrations,
Holders of Quality Assurance Program Approvals and Government Agencies
Licensed by the NRC.
* * * * *
(c) A licensee who is required to pay an annual fee under this
section may qualify as a small entity. If a licensee qualifies as a
small entity and provides the Commission with the proper certification
along with its annual fee payment, the licensee may pay reduced annual
fees as shown in the following table. Failure to file a small entity
certification in a timely manner could result in the denial of any
refund that might otherwise be due. The small entity fees are as
follows:
------------------------------------------------------------------------
Miximum annual
fee per
licensed
category
------------------------------------------------------------------------
Small Businesses Not Engaged in Manufacturing and Small
Not-For-Profit Organizations (Gross Annual Receipts):
$350,000 to $5 million.............................. $2,300
[[Page 36735]]
Less than $350,000.................................. 500
Manufacturing entities that have an average of 500
employees or less:
35 to 500 employees................................. 2,300
Less than 35 employees.............................. 500
Small Governmental Jurisdictions (Including publicly
supported educational institutions) (Population):
20,000 to 50,000.................................... 2,300
Less than 20,000.................................... 500
Educational Institutions that are not State or Publicly
Supported, and have 500 Employees or Less:
35 to 500 employees................................. $2,300
Less than 35 employees.............................. $500
------------------------------------------------------------------------
(1) A licensee qualifies as a small entity if it meets the size
standards established by the NRC (See 10 CFR 2.810).
(2) A licensee who seeks to establish status as a small entity for
the purpose of paying the annual fees required under this section must
file a certification statement with the NRC. The licensee must file the
required certification on NRC Form 526 for each license under which it
is billed. NRC Form 526 can be accessed through the NRC's Web site at
http://www.nrc.gov. For licensees who cannot access the NRC's Web site,
NRC Form 526 may be obtained through the local point of contact listed
in the NRC's ``Materials Annual Fee Billing Handbook,'' NUREG/BR-0238,
which is enclosed with each annual fee billing. The form can also be
obtained by calling the fee staff at 301-415-7554, or by e-mailing the
fee staff at [email protected].
(3) For purposes of this section, the licensee must submit a new
certification with its annual fee payment each year.
(4) The maximum annual fee a small entity is required to pay is
$2,300 for each category applicable to the license(s).
(d) The FY 2003 annual fees are comprised of a base annual fee and
an additional charge (surcharge). The activities comprising the FY 2003
surcharge are shown for convenience in paragraph (e) of this section.
The FY 2003 annual fees for materials licensees and holders of
certificates, registrations or approvals subject to fees under this
section are shown in the following table:
Schedule of Materials Annual Fees and Fees for Government Agencies
Licensed by NRC
[See footnotes at end of table]
------------------------------------------------------------------------
Annual
Category of materials licenses fees1,2,3
------------------------------------------------------------------------
1. Special nuclear material:
A. (1) Licenses for possession and use of U-235 or
plutonium for fuel fabrication activities.
(a) Strategic Special Nuclear Material:
BWX Technologies SNM-42..................... $5,836,000
Nuclear Fuel Services SNM-124............... 5,836,000
(b) Low Enriched Uranium in Dispersible Form
Used for Fabrication of Power Reactor Fuel:
Global Nuclear Fuel SNM-1097................ 1,957,000
Framatome ANP Richland SNM-1227............. 1,957,000
Westinghouse Electric Company SNM-1107...... 1,957,000
(2) All other special nuclear materials licenses not
included in Category 1.A.(1) which are licensed for
fuel cycle activities.
(a) Facilities with limited operations:
Framatome ANP SNM-1168...................... 769,000
(b) All Others:
General Electric SNM-960.................... 559,000
B. Licenses for receipt and storage of spent fuel \11\N/A
and reactor-related Greater than Class C (GTCC)
waste at an independent spent fuel storage
installation (ISFSI)...............................
C. Licenses for possession and use of special 1,900
nuclear material in sealed sources contained in
devices used in industrial measuring systems,
including x-ray fluorescence analyzers.............
D. All other special nuclear material licenses, 4,500
except licenses authorizing special nuclear
material in unsealed form in combination that would
constitute a critical quantity, as defined in Sec.
150.11 of this chapter, for which the licensee
shall pay the same fees as those for Category
1.A.(2)............................................
E. Licenses or certificates for the operation of a 3,634,000
uranium enrichment facility........................
2. Source material:
A. (1) Licenses for possession and use of source 839,000
material for refining uranium mill concentrates to
uranium hexafluoride...............................
(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 extraction of metals
other than uranium or thorium, including licenses
authorizing the possession of byproduct waste
material (tailings) from source material recovery
operations, as well as licenses authorizing the
possession and maintenance of a facility in a
standby mode.
Class I facilities \4\.......................... 63,700
Class II facilities \4\......................... 53,300
Other facilities \4\............................ 93,600
(3) Licenses that authorize the receipt of byproduct 39,300
material, as defined in Section 11e.(2) of the
Atomic Energy Act, from other persons for
possession and disposal, except those licenses
subject to the fees in Category 2A(2) or Category
2A(4)..............................................
[[Page 36736]]
(4) Licenses that authorize the receipt of byproduct 6,200
material, as defined in Section 11e.(2) of the
Atomic Energy Act, from other persons for
possession and disposal incidental to the disposal
of the uranium waste tailings generated by the
licensee's milling operations, except those
licenses subject to the fees in Category 2A(2).....
B. Licenses that authorize only the possession, use 730
and/or installation of source material for
shielding..........................................
C. All other source material licenses............... 11,400
3. Byproduct material:
A. Licenses of broad scope for possession and use of 21,800
byproduct material issued under parts 30 and 33 of
this chapter for processing or manufacturing of
items containing byproduct material for commercial
distribution.......................................
B. Other licenses for possession and use of 6,600
byproduct material issued under part 30 of this
chapter for processing or manufacturing of items
containing byproduct material for commercial
distribution.......................................
C. Licenses issued under Sec. Sec. 32.72, 32.73, 10,900
and/or 32.74 of this chapter authorizing the
processing or manufacturing and distribution or
redistribution of radiopharmaceuticals, generators,
reagent kits and/or sources and devices containing
byproduct material. This category also includes the
possession and use of source material for shielding
authorized under part 40 of this chapter when
included on the same license. This category does
not apply to licenses issued to nonprofit
educational institutions whose processing or
manufacturing is exempt under Sec. 171.11(a)(1).
These licenses are covered by fee Category 3D......
D. Licenses and approvals issued under Sec. Sec. 4,700
32.72, 32.73, and/or 32.74 of this chapter
authorizing distribution or redistribution of
radiopharmaceuticals, generators, reagent kits and/
or sources or devices not involving processing of
byproduct material. This category includes licenses
issued under Sec. Sec. 32.72, 32.73 and 32.74 of
this chapter to nonprofit educational institutions
whose processing or manufacturing is exempt under
Sec. 171.11(a)(1). This category also includes
the possession and use of source material for
shielding authorized under part 40 of this chapter
when included on the same license..................
E. Licenses for possession and use of byproduct 3,600
material in sealed sources for irradiation of
materials in which the source is not removed from
its shield (self-shielded units)...................
F. Licenses for possession and use of less than 6,600
10,000 curies of byproduct material in sealed
sources for irradiation of materials in which the
source is exposed for irradiation purposes. This
category also includes underwater irradiators for
irradiation of materials in which the source is not
exposed for irradiation purposes...................
G. Licenses for possession and use of 10,000 curies 24,100
or more of byproduct material in sealed sources for
irradiation of materials in which the source is
exposed for irradiation purposes. This category
also includes underwater irradiators for
irradiation of materials in which the source is not
exposed for irradiation purposes...................
H. Licenses issued under Subpart A of part 32 of 6,000
this chapter to distribute items containing
byproduct material that require device review to
persons exempt from the licensing requirements of
part 30 of this chapter, except specific licenses
authorizing redistribution of items that have been
authorized for distribution to persons exempt from
the licensing requirements of part 30 of this
chapter............................................
I. Licenses issued under Subpart A of part 32 of 6,100
this chapter to distribute items containing
byproduct material or quantities of byproduct
material that do not require device evaluation to
persons exempt from the licensing requirements of
part 30 of this chapter, except for specific
licenses authorizing redistribution of items that
have been authorized for distribution to persons
exempt from the licensing requirements of part 30
of this chapter....................................
J. Licenses issued under Subpart B of part 32 of 2,200
this chapter to distribute items containing
byproduct material that require sealed source and/
or device review to persons generally licensed
under part 31 of this chapter, except specific
licenses authorizing redistribution of items that
have been authorized for distribution to persons
generally licensed under part 31 of this chapter...
K. Licenses issued under Subpart B of part 31 of 1,400
this chapter to distribute items containing
byproduct material or quantities of byproduct
material that do not require sealed source and/or
device review to persons generally licensed under
part 31 of this chapter, except specific licenses
authorizing redistribution of items that have been
authorized for distribution to persons generally
licensed under part 31 of this chapter.............
L. Licenses of broad scope for possession and use of 11,800
byproduct material issued under parts 30 and 33 of
this chapter for research and development that do
not authorize commercial distribution..............
M. Other licenses for possession and use of 5,600
byproduct material issued under part 30 of this
chapter for research and development that do not
authorize commercial distribution..................
N. Licenses that authorize services for other
licensees, except:
(1) Licenses that authorize only calibration and/
or leak testing services are subject to the
fees specified in fee Category 3P; and.........
(2) Licenses that authorize waste disposal 6,100
services are subject to the fees specified in
fee Categories 4A, 4B, and 4C..................
O. Licenses for possession and use of byproduct 12,200
material issued under part 34 of this chapter for
industrial radiography operations. This category
also includes the possession and use of source
material for shielding authorized under part 40 of
this chapter when authorized on the same license...
P. All other specific byproduct material licenses, 2,500
except those in Categories 4A through 9D...........
Q. Registration of devices generally licensed \13\ N/A
pursuant to part 31 of this chapter................
4. Waste disposal and processing:
A. Licenses specifically authorizing the receipt of \5\ N/A
waste byproduct material, source material, or
special nuclear material from other persons for the
purpose of contingency storage or commercial land
disposal by the licensee; or licenses authorizing
contingency storage of low-level radioactive waste
at the site of nuclear power reactors; or licenses
for receipt of waste from other persons for
incineration or other treatment, packaging of
resulting waste and residues, and transfer of
packages to another person authorized to receive or
dispose of waste material..........................
B. Licenses specifically authorizing the receipt of 10,300
waste byproduct material, source material, or
special nuclear material from other persons for the
purpose of packaging or repackaging the material.
The licensee will dispose of the material by
transfer to another person authorized to receive or
dispose of the material............................
[[Page 36737]]
C. Licenses specifically authorizing the receipt of 7,400
prepackaged waste byproduct material, source
material, or special nuclear material from other
persons. The licensee will dispose of the material
by transfer to another person authorized to receive
or dispose of the material.........................
5. Well logging:
A. Licenses for possession and use of byproduct 4,700
material, source material, and/or special nuclear
material for well logging, well surveys, and tracer
studies other than field flooding tracer studies...
B. Licenses for possession and use of byproduct \5\ N/A
material for field flooding tracer studies.........
6. Nuclear laundries:
A. Licenses for commercial collection and laundry of 23,100
items contaminated with byproduct material, source
material, or special nuclear material..............
7. Medical licenses:
A. Licenses issued under parts 30, 35, 40, and 70 of 11,000
this chapter for human use of byproduct material,
source material, or special nuclear material in
sealed sources contained in teletherapy devices.
This category also includes the possession and use
of source material for shielding when authorized on
the same license...................................
B. Licenses of broad scope issued to medical 24,700
institutions or two or more physicians under parts
30, 33, 35, 40, and 70 of this chapter authorizing
research and development, including human use of
byproduct material except licenses for byproduct
material, source material, or special nuclear
material in sealed sources contained in teletherapy
devices. This category also includes the possession
and use of source material for shielding when
authorized on the same license.\9\.................
C. Other licenses issued under parts 30, 35, 40, and 4,600
70 of this chapter for human use of byproduct
material, source material, and/or special nuclear
material except licenses for byproduct material,
source material, or special nuclear material in
sealed sources contained in teletherapy devices.
This category also includes the possession and use
of source material for shielding when authorized on
the same license.\9\...............................
8. Civil defense:
A. Licenses for possession and use of byproduct 1,300
material, source material, or special nuclear
material for civil defense activities..............
9. Device, product, or sealed source safety evaluation:
A. Registrations issued for the safety evaluation of 7,000
devices or products containing byproduct material,
source material, or special nuclear material,
except reactor fuel devices, for commercial
distribution.......................................
B. Registrations issued for the safety evaluation of 7,000
devices or products containing byproduct material,
source material, or special nuclear material
manufactured in accordance with the unique
specifications of, and for use by, a single
applicant, except reactor fuel devices.............
C. Registrations issued for the safety evaluation of 2,200
sealed sources containing byproduct material,
source material, or special nuclear material,
except reactor fuel, for commercial distribution...
D. Registrations issued for the safety evaluation of 730
sealed sources containing byproduct material,
source material, or special nuclear material,
manufactured in accordance with the unique
specifications of, and for use by, a single
applicant, except reactor fuel.....................
10. Transportation of radioactive material:
A. Certificates of Compliance or other package
approvals issued for design of casks, packages, and
shipping containers.
Spent Fuel, High-Level Waste, and plutonium air \6\ N/A
packages.......................................
Other Casks..................................... \6\ N/A
B. Quality assurance program approvals issued under
part 71 of this chapter.
Users and Fabricators........................... 76,200
Users........................................... 7,100
11. Standardized spent fuel facilities.................. \6\ N/A
12. Special Projects.................................... \6\ N/A
13. A. Spent fuel storage cask Certificate of Compliance \6\ N/A
B. General licenses for storage of spent fuel under 10 \12\ N/A
CFR 72.210...........................................
14. Byproduct, source, or special nuclear material \7\ N/A
licenses and other approvals authorizing
decommissioning, decontamination, reclamation, or site
restoration activities under parts 30, 40, 70, 72, and
76 of this chapter.....................................
15. Import and Export licenses.......................... \8\ N/A
16. Reciprocity......................................... \8\ N/A
17. Master materials licenses of broad scope issued to 228,000
Government agencies....................................
18. Department of Energy:
A. Certificates of Compliance....................... \10\ 1,386,000
B. Uranium Mill Tailing Radiation Control Act 950,000
(UMTRCA) Activities................................
------------------------------------------------------------------------
\1\ 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 current fiscal year. However, the
annual fee is waived for those materials licenses and holders of
certificates, registrations, and approvals who either filed for
termination of their licenses or approvals or filed for possession
only/storage licenses prior to October 1, 2002, and permanently ceased
licensed activities entirely by September 30, 2002. Annual fees for
licensees who filed for termination of a license, downgrade of a
license, or for a possession only license during the fiscal year and
for new licenses issued during the fiscal year will be prorated in
accordance with the provisions of Sec. 171.17. If a person holds
more than one license, certificate, registration, or approval, the
annual fee(s) will be assessed for each license, certificate,
registration, or approval held by that person. For licenses that
authorize more than one activity on a single license (e.g., human use
and irradiator activities), annual fees will be assessed for each
category applicable to the license. Licensees paying annual fees under
Category 1A(1) are not subject to the annual fees for Category 1C and
1D for sealed sources authorized in the license.
\2\ Payment of the prescribed annual fee does not automatically renew
the license, certificate, registration, or approval for which the fee
is paid. Renewal applications must be filed in accordance with the
requirements of parts 30, 40, 70, 71, 72, or 76 of this chapter.
\3\ Each fiscal year, fees for these materials licenses will be
calculated and assessed in accordance with Sec. 171.13 and will be
published in the Federal Register for notice and comment.
\4\ A Class I license includes mill licenses issued for the extraction
of uranium from uranium ore. A Class II license includes solution
mining licenses(in-situ and heap leach) issued for the extraction of
uranium from uranium ores including research and development licenses.
An ``other'' license includes licenses for extraction of metals, heavy
metals, and rare earths.
[[Page 36738]]
\5\ There are no existing NRC licenses in these fee categories. If NRC
issues a license for these categories, the Commission will consider
establishing an annual fee for this type of license.
\6\ Standardized spent fuel facilities, 10 CFR Parts 71 and 72
Certificates of Compliance, and special reviews, such as topical
reports, are not assessed an annual fee because the generic costs of
regulating these activities are primarily attributable to users of the
designs, certificates, and topical reports.
\7\ Licensees in this category are not assessed an annual fee because
they are charged an annual fee in other categories while they are
licensed to operate.
\8\ No annual fee is charged because it is not practical to administer
due to the relatively short life or temporary nature of the license.
\9\ Separate annual fees will not be assessed for pacemaker licenses
issued to medical institutions who also hold nuclear medicine licenses
under Categories 7B or 7C.
\10\ This includes Certificates of Compliance issued to DOE that are not
under the Nuclear Waste Fund.
\11\ See Sec. 171.15(c).
\12\ See Sec. 171.15(c).
\13\ No annual fee is charged for this category because the cost of the
general license registration program applicable to licenses in this
category will be recovered through 10 CFR part 170 fees.
(e) The activities comprising the surcharge are as follows:
(1) LLW disposal generic activities;
(2) Activities not directly attributable to an existing NRC
licensee or class(es) of licenses; e.g., international cooperative
safety program and international safeguards activities; support for the
Agreement State program; Site Decommissioning Management Plan (SDMP)
activities; and
(3) Activities not currently assessed licensing and inspection fees
under 10 CFR part 170 based on existing law or Commission policy (e.g.,
reviews and inspections of nonprofit educational institutions and
reviews for 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, 5 U.S.C. 601 et seq.)
Dated at Rockville, Maryland, this 30th day of May, 2003.
For the Nuclear Regulatory Commission.
Jesse L. Funches,
Chief Financial Officer.
Note: This appendix will not appear in the Code of Federal
Regulations.
Appendix A to This Final Rule--Final Regulatory Flexibility Analysis
for the Amendments to 10 CFR Part 170 (License Fees) and 10 CFR Part
171 (Annual Fees)
I. Background
The Regulatory Flexibility Act (RFA), as amended, (5 U.S.C. 601
et seq.) requires that agencies consider the impact of their
rulemakings on small entities and, consistent with applicable
statutes, consider alternatives to minimize these impacts on the
businesses, organizations, and government jurisdictions to which
they apply.
The NRC has established standards for determining which NRC
licensees qualify as small entities (10 CFR 2.810). These size
standards were established on the basis of the Small Business
Administration's most common receipts-based size standards and
include a size standard for business concerns that are manufacturing
entities. The NRC uses the size standards to reduce the impact of
annual fees on small entities by establishing a licensee's
eligibility to qualify for a maximum small entity fee. The small
entity fee categories in Sec. 171.16(c) of this final rule are
based on the NRC's size standards.
From FY 1991 through FY 2000, the Omnibus Budget Reconciliation
Act (OBRA-90), as amended, required that the NRC recover
approximately 100 percent of its budget authority, less
appropriations from the Nuclear Waste Fund, by assessing license and
annual fees. The FY 2001 Energy and Water Development Appropriations
Act amended OBRA-90 to decrease the NRC's fee recovery amount by 2
percent per year beginning in FY 2001, until the fee recovery amount
is 90 percent in FY 2005. The amount to be recovered for FY 2003 is
approximately $526.3 million.
OBRA-90 requires that the schedule of charges established by
rule should fairly and equitably allocate the total amount to be
recovered from the NRC's licensees and be assessed under the
principle that licensees who require the greatest expenditure of
agency resources pay the greatest annual charges. Since FY 1991, the
NRC has complied with OBRA-90 by issuing a final rule that amends
its fee regulations. These final rules have established the
methodology used by NRC in identifying and determining the fees to
be assessed and collected in any given fiscal year.
In FY 1995, the NRC announced that, in order to stabilize fees,
annual fees would be adjusted only by the percentage change (plus or
minus) in NRC's total budget authority, adjusted for changes in
estimated collections for 10 CFR Part 170 fees, the number of
licensees paying annual fees, and as otherwise needed to assure the
billed amounts resulted in the required collections. The NRC
indicated that if there were a substantial change in the total NRC
budget authority or the magnitude of the budget allocated to a
specific class of licenses, the annual fee base would be
recalculated.
In FY 1999, the NRC concluded that there had been significant
changes in the allocation of agency resources among the various
classes of licenses and established rebaselined annual fees for FY
1999. The NRC stated in the final FY 1999 rule that to stabilize
fees it would continue to adjust the annual fees by the percent
change method established in FY 1995, unless there is a substantial
change in the total NRC budget or the magnitude of the budget
allocated to a specific class of licenses, in which case the annual
fee base would be reestablished.
Based on the change in the magnitude of the budget to be
recovered through fees, the Commission has determined that it is
appropriate to rebaseline its part 171 annual fees again in FY 2003.
Rebaselining fees will result in increased annual fees for a
majority of the categories of licenses, decreased annual fees for
other categories (including many materials licensees), and no change
for one category.
The Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA) is intended to reduce regulatory burdens imposed by Federal
agencies on small businesses, nonprofit organizations, and
governmental jurisdictions. SBREFA also provides Congress with the
opportunity to review agency rules before they go into effect. Under
this legislation, the NRC annual fee rule is considered a ``major''
rule and must be reviewed by Congress and the Comptroller General
before the rule becomes effective. SBREFA also requires that an
agency prepare a guide to assist small entities in complying with
each rule for which a final regulatory flexibility analysis is
prepared. This Regulatory Flexibility Analysis (RFA) and the small
entity compliance guide (Attachment 1) have been prepared for the FY
2003 fee rule as required by law.
II. Impact on Small Entities
The fee rule results in substantial fees being charged to those
individuals, organizations, and companies that are licensed by the
NRC, including those licensed under the NRC materials program. The
comments received on previous proposed fee rules and the small
entity certifications received in response to previous final fee
rules indicate that NRC licensees qualifying as small entities under
the NRC's size standards are primarily materials licensees.
Therefore, this analysis will focus on the economic impact of the
annual fees on materials licensees. About 24 percent of these
licensees (approximately 1,200 licensees for FY 2002) have requested
small entity certification in the past. A 1993 NRC survey of its
materials licensees indicated that about 25 percent of these
licensees could qualify as small entities under the NRC's size
standards.
The commenters on previous fee rulemakings consistently
indicated that the following results would occur if the proposed
annual fees were not modified:
1. Large firms would gain an unfair competitive advantage over
small entities.
[[Page 36739]]
Commenters noted that small and very small companies (``Mom and
Pop'' operations) would find it more difficult to absorb the annual
fee than a large corporation or a high-volume type of operation. In
competitive markets, such as soils testing, annual fees would put
small licensees at an extreme competitive disadvantage with their
much larger competitors because the proposed fees would be the same
for a two-person licensee as for a large firm with thousands of
employees.
2. Some firms would be forced to cancel their licenses. A
licensee with receipts of less than $500,000 per year stated that
the proposed rule would, in effect, force it to relinquish its soil
density gauge and license, thereby reducing its ability to do its
work effectively. Other licensees, especially well-loggers, noted
that the increased fees would force small businesses to get rid of
the materials license altogether. Commenters stated that the
proposed rule would result in about 10 percent of the well-logging
licensees terminating their licenses immediately and approximately
25 percent terminating their licenses before the next annual
assessment.
3. Some companies would go out of business.
4. Some companies would have budget problems. Many medical
licensees noted that, along with reduced reimbursements, the
proposed increase of the existing fees and the introduction of
additional fees would significantly affect their budgets. Others
noted that, in view of the cuts by Medicare and other third party
carriers, the fees would produce a hardship and some facilities
would experience a great deal of difficulty in meeting this
additional burden.
Approximately 3,000 license, approval, and registration
terminations have been requested since the NRC first established
annual fees for materials licenses. Although some of these
terminations were requested because the license was no longer needed
or licenses or registrations could be combined, indications are that
other termination requests were due to the economic impact of the
fees.
To alleviate the significant impact of the annual fees on a
substantial number of small entities, the NRC considered the
following alternatives in accordance with the RFA, in developing
each of its fee rules since FY 1991.
1. Base fees on some measure of the amount of radioactivity
possessed by the licensee (e.g., number of sources).
2. Base fees on the frequency of use of the licensed radioactive
material (e.g., volume of patients).
3. Base fees on the NRC size standards for small entities.
The NRC has reexamined its previous evaluations of these
alternatives and continues to believe that establishment of a
maximum fee for small entities is the most appropriate and effective
option for reducing the impact of its fees on small entities.
III. Maximum Fee
The RFA and its implementing guidance do not provide specific
guidelines on what constitutes a significant economic impact on a
small entity; therefore, the NRC has no benchmark to assist it in
determining the amount or the percent of gross receipts that should
be charged to a small entity. In developing the maximum small entity
annual fee in FY 1991, the NRC examined its 10 CFR Part 170
licensing and inspection fees and Agreement State fees for those fee
categories which were expected to have a substantial number of small
entities. Six Agreement States, Washington, Texas, Illinois,
Nebraska, New York, and Utah, were used as benchmarks in the
establishment of the maximum small entity annual fee in FY 1991.
Because small entities in those Agreement States were paying the
fees, the NRC concluded that these fees did not have a significant
impact on a substantial number of small entities. Therefore, those
fees were considered a useful benchmark in establishing the NRC
maximum small entity annual fee.
The NRC maximum small entity fee was established as an annual
fee only. In addition to the annual fee, NRC small entity licensees
were required to pay amendment, renewal and inspection fees. In
setting the small entity annual fee, NRC ensured that the total
amount small entities paid annually would not exceed the maximum
paid in the six benchmark Agreement States.
Of the six benchmark states, the maximum Agreement State fee of
$3,800 in Washington was used as the ceiling for the total fees.
Thus the NRC's small entity fee was developed to ensure that the
total fees paid by NRC small entities would not exceed $3,800. Given
the NRC's FY 1991 fee structure for inspections, amendments, and
renewals, a small entity annual fee established at $1,800 allowed
the total fee (small entity annual fee plus yearly average for
inspections, amendments and renewal fees) for all categories to fall
under the $3,800 ceiling.
In FY 1992, the NRC introduced a second, lower tier to the small
entity fee in response to concerns that the $1,800 fee, when added
to the license and inspection fees, still imposed a significant
impact on small entities with relatively low gross annual receipts.
For purposes of the annual fee, each small entity size standard was
divided into an upper and lower tier. Small entity licensees in the
upper tier continued to pay an annual fee of $1,800 while those in
the lower tier paid an annual fee of $400.
Based on the changes that had occurred since FY 1991, the NRC
re-analyzed its maximum small entity annual fees in FY 2000, and
determined that the small entity fees should be increased by 25
percent to reflect the increase in the average fees paid by other
materials licensees since FY 1991 as well as changes in the fee
structure for materials licensees. The structure of the fees that
NRC charged to its materials licensees changed during the period
between 1991 and 1999. Costs for materials license inspections,
renewals, and amendments, which were previously recovered through
part 170 fees for services, are now included in the part 171 annual
fees assessed to materials licensees. As a result, the maximum small
entity annual fee increased from $1,800 to $2,300 in FY 2000. By
increasing the maximum annual fee for small entities from $1,800 to
$2,300, the annual fee for many small entities was reduced while at
the same time materials licensees, including small entities, would
pay for most of the costs attributable to them. The costs not
recovered from small entities are allocated to other materials
licensees and to power reactors.
While reducing the impact on many small entities, the NRC
determined that the maximum annual fee of $2,300 for small entities
may continue to have a significant impact on materials licensees
with annual gross receipts in the thousands of dollars range.
Therefore, the NRC continued to provide a lower-tier small entity
annual fee for small entities with relatively low gross annual
receipts, and for manufacturing concerns and educational
institutions not State or publicly supported, with less than 35
employees. The NRC also increased the lower tier small entity fee by
the same percentage increase to the maximum small entity annual fee.
This 25 percent increase resulted in the lower tier small entity fee
increasing from $400 to $500 in FY 2000.
The NRC examined the small entity fees again in FY 2001 (66 FR
32452; June 14, 2001), and determined that a change was not
warranted to the small entity fees established in FY 2000. The NRC
stated in the Regulatory Flexibility Analysis for the FY 2001 final
fee rule that it would re-examine the small entity fees every two
years, in the same years in which it conducts the biennial review of
fees as required by the CFO Act.
Accordingly, the NRC has re-examined the small entity fees for
FY 2003, and does not believe that a change to the small entity fees
is warranted this year. Unlike the annual fees assessed to other
licensees, the small entity fees are not designed to recover the
agency costs associated with particular licensees. Instead, the
reduced fees for small entities are designed to provide some fee
relief for qualifying small entity licensees while at the same time
recovering from them some of the agency's costs for activities that
benefit them. The costs not recovered from small entities for
activities that benefit them must be recovered from other licensees.
Given the reduction in annual fees and the relative low inflation
rates, the NRC has determined that the current small entity fees of
$500 and $2,300 continue to meet the objective of providing relief
to many small entities while recovering from them some of the costs
that benefit them.
Therefore, the NRC is retaining the $2,300 small entity annual
fee and the $500 lower tier small entity annual fee for FY 2003. The
NRC plans to re-examine the small entity fees again in FY 2005.
IV. Summary
The NRC has determined that the 10 CFR Part 171 annual fees
significantly impact a substantial number of small entities. A
maximum fee for small entities strikes a balance between the
requirement to recover 94 percent of the NRC budget and the
requirement to consider means of reducing the impact of the fee on
small entities. On the basis of its regulatory flexibility analysis,
the NRC concludes that a maximum annual fee of $2,300 for small
entities and a lower-tier small entity annual fee of $500 for small
[[Page 36740]]
businesses and not-for-profit organizations with gross annual
receipts of less than $350,000, small governmental jurisdictions
with a population of less than 20,000, small manufacturing entities
that have less than 35 employees, and educational institutions that
are not State or publicly supported and have less than 35 employees
reduces the impact on small entities. At the same time, these
reduced annual fees are consistent with the objectives of OBRA-90.
Thus, the fees for small entities maintain a balance between the
objectives of OBRA-90 and the RFA. Therefore, the analysis and
conclusions previously established remain valid for FY 2003.
Attachment 1 to Appendix A--U.S. Nuclear Regulatory Commission Small
Entity Compliance Guide; Fiscal Year 2003
Contents
Introduction
NRC Definition of Small Entity
NRC Small Entity Fees
Instructions for Completing NRC Form 526
Introduction
The Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA) requires all Federal agencies to prepare a written guide
for each ``major'' final rule as defined by the Act. The NRC's fee
rule, published annually to comply with the Omnibus Budget
Reconciliation Act of 1990 (OBRA-90), as amended, is considered a
``major'' rule under SBREFA. Therefore, in compliance with the law,
this guide has been prepared to assist NRC material licensees in
complying with the FY 2003 fee rule.
Licensees may use this guide to determine whether they qualify
as a small entity under NRC regulations and are eligible to pay
reduced FY 2003 annual fees assessed under 10 CFR Part 171. The NRC
has established two tiers of separate annual fees for those
materials licensees who qualify as small entities under NRC's size
standards.
Licensees who meet NRC's size standards for a small entity must
submit a completed NRC Form 526 ``Certification of Small Entity
Status for the Purposes of Annual Fees Imposed Under 10 CFR Part
171'' to qualify for the reduced annual fee. This form can be
accessed on the NRC's Web site at http://www.nrc.gov. The form can
then be accessed by selecting ``License Fees'' and under ``Forms''
selecting NRC Form 526. For licensees who cannot access the NRC's
Web site, NRC Form 526 may be obtained through the local point of
contact listed in the NRC's ``Materials Annual Fee Billing
Handbook,'' NUREG/BR-0238, which is enclosed with each annual fee
billing. Alternatively, the form may be obtained by calling the fee
staff at 301-415-7554, or by e-mailing the fee staff at
[email protected]. The completed form, the appropriate small entity fee,
and the payment copy of the invoice should be mailed to the U.S.
Nuclear Regulatory Commission, License Fee and Accounts Receivable
Branch, to the address indicated on the invoice. Failure to file the
NRC small entity certification Form 526 in a timely manner may
result in the denial of any refund that might otherwise be due.
NRC Definition of Small Entity
The NRC has defined a small entity for purposes of compliance
with its regulations (10 CFR 2.810) as follows:
1. Small business--a for-profit concern that provides a service
or a concern not engaged in manufacturing with average gross
receipts of $5 million or less over its last 3 completed fiscal
years;
2. Manufacturing industry--a manufacturing concern with an
average number of 500 or fewer employees based upon employment
during each pay period for the preceding 12 calendar months;
3. Small organizations--a not-for-profit organization which 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;
5. Small educational institution--an educational institution
supported by a qualifying small governmental jurisdiction, or one
that is not state or publicly supported and has 500 or fewer
employees.\1\
---------------------------------------------------------------------------
\1\ An educational institution referred to in the size standards
is an entity whose primary function is education, whose programs are
accredited by a nationally recognized accrediting agency or
association, who is legally authorized to provide a program of
organized instruction or study, who provides an educational program
for which it awards academic degrees, and whose educational programs
are available to the public.
---------------------------------------------------------------------------
To further assist licensees in determining if they qualify as a
small entity, we are providing the following guidelines, which are
based on the Small Business Administration's regulations (13 CFR
Part 121).
1. A small business concern is an independently owned and
operated entity which is not considered dominant in its field of
operations.
2. The number of employees means the total number of employees
in the parent company, any subsidiaries and/or affiliates, including
both foreign and domestic locations (i.e., not solely the number of
employees working for the licensee or conducting NRC licensed
activities for the company).
3. Gross annual receipts includes all revenue received or
accrued from any source, including receipts of the parent company,
any subsidiaries and/or affiliates, and account for both foreign and
domestic locations. Receipts include all revenues from sales of
products and services, interest, rent, fees, and commissions, from
whatever sources derived (i.e., not solely receipts from NRC
licensed activities).
4. A licensee who is a subsidiary of a large entity does not
qualify as a small entity.
NRC Small Entity Fees
In 10 CFR 171.16 (c), the NRC has established two tiers of small
entity fees for licensees that qualify under the NRC's size
standards. The fees are as follows:
------------------------------------------------------------------------
Maximum
annual fee
per licensed
category
------------------------------------------------------------------------
Small Business Not Engaged in Manufacturing and Small
Not-For-Profit Organizations (Gross Annual Receipts):
$350,000 to $5 million.............................. $2,300
Less than $350,000.................................. 500
Manufacturing entities that have an average of 500
employees or less:
35 to 500 employees................................. 2,300
Less than 35 employees.............................. 500
Small Governmental Jurisdictions (Including publicly
supported educational institutions) (Population):
20,000 to 50,000.................................... 2,300
Less than 20,000.................................... 500
Educational Institutions that are not State or Publicly
Supported, and have 500 Employees or Less:
35 to 500 employees................................. 2,300
Less than 35 employees.............................. 500
------------------------------------------------------------------------
To pay a reduced annual fee, a licensee must use NRC Form 526.
Licensees can access this form on the NRC's Web site at http://www.nrc.gov. The form can then be accessed by selecting ``License
Fees'' and under ``Forms'' selecting NRC Form 526. Those licensees
that qualify as a ``small entity'' under the NRC size standards at
10 CFR Part 2.810 can complete the form in accordance with the
instructions provided, and submit the completed form and the
appropriate payment to the address provided on the invoice. For
licensees who cannot access the NRC's Web site, NRC Form 526 may be
obtained through the local point of
[[Page 36741]]
contact listed in the NRC's ``Materials Annual Fee Billing
Handbook,'' NUREG/BR-0238, which is enclosed with each annual fee
invoice. Alternatively, licensees may obtain the form by calling the
fee staff at 301-415-7544, or by e-mailing us at [email protected].
Instructions for Completing NRC Small Entity Form 526
1. File a separate NRC Form 526 for each annual fee invoice
received.
2. Complete all items on NRC Form 526 as follows:
a. The license number and invoice number must be entered exactly
as they appear on the annual fee invoice.
b. The Standard Industrial Classification (SIC) or North
American Industry Classification System (NAICS) Code must be entered
if known.
c. The licensee's name and address must be entered as they
appear on the invoice. Name and/or address changes for billing
purposes must be annotated on the invoice. Correcting the name and/
or address on NRC Form 526, or on the invoice does not constitute a
request to amend the license. Any request to amend a license is to
be submitted to the respective licensing staffs in the NRC Regional
or Headquarters Offices.
d. Check the appropriate size standard for which the licensee
qualifies as a small entity. Check only one box. Note the following:
(1) A licensee who is a subsidiary of a large entity does not
qualify as a small entity.
(2) The size standards apply to the licensee, including all
parent companies and affiliates-- not the individual authorized
users listed in the license or the particular segment of the
organization that uses licensed material.
(3) Gross annual receipts means all revenue in whatever form
received or accrued from whatever sources --not solely receipts from
licensed activities. There are limited exceptions as set forth at 13
CFR 121.104. These are: the term receipts excludes net capital gains
or losses; taxes collected for and remitted to a taxing authority if
included in gross or total income; proceeds from the transactions
between a concern and its domestic or foreign affiliates (if also
excluded from gross or total income on a consolidated return filed
with the IRS); and amounts collected for another entity by a travel
agent, real estate agent, advertising agent, or conference
management service provider.
(4) The owner of the entity, or an official empowered to act on
behalf of the entity, must sign and date the small entity
certification.
The NRC sends invoices to its licensees for the full annual fee,
even though some entities qualify for reduced fees as a small
entity. Licensees who qualify as a small entity and file NRC Form
526, which certifies eligibility for small entity fees, may pay the
reduced fee, which for a full year is either $2,300 or $500
depending on the size of the entity, for each fee category shown on
the invoice. Licensees granted a license during the first six months
of the fiscal year, and licensees who file for termination or for a
possession only license and permanently cease licensed activities
during the first six months of the fiscal year, pay only 50 percent
of the annual fee for that year. Such an invoice states the ``Amount
Billed Represents 50% Proration.'' This means the amount due from a
small entity is not the 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, resulting in a
fee of either $1150 or $250 for each fee category billed, instead of
the full small entity annual fee of $2,300 or $500.
A new small entity form (NRC Form 526) must be filed with the
NRC each fiscal year to qualify for reduced fees in that 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
526 must be completed and returned in order for the fee to be
reduced to the small entity fee amount. Licensees will not be issued
a new invoice for the reduced amount. The completed NRC Form 526,
the payment of the appropriate small entity fee, and the ``Payment
Copy'' of the invoice should be mailed to the U.S. Nuclear
Regulatory Commission, License Fee and Accounts Receivable Branch at
the address indicated on the invoice.
If you have questions regarding the NRC's annual fees, please
call the license fee staff at 301-415-7554, e-mail the fee staff at
[email protected], or write to the U.S. Nuclear Regulatory Commission,
Washington, DC 20555, Attention: Office of the Chief Financial
Officer.
False certification of small entity status could result in civil
sanctions being imposed by the NRC under the Program Fraud Civil
Remedies Act, 31 U.S.C. 3801 et. seq. NRC's implementing regulations
are found at 10 CFR part 13.
[FR Doc. 03-14960 Filed 6-17-03; 8:45 am]
BILLING CODE 7590-01-P