[Federal Register Volume 68, Number 64 (Thursday, April 3, 2003)]
[Proposed Rules]
[Pages 16374-16395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-7814]
[[Page 16373]]
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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; Proposed Rule
Federal Register / Vol. 68, No. 64 / Thursday, April 3, 2003 /
Proposed Rules
[[Page 16374]]
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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: Proposed rule.
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SUMMARY: The Nuclear Regulatory Commission (NRC) is proposing to amend
the licensing, inspection, and annual fees charged to its applicants
and licensees. The proposed amendments are necessary to implement the
Omnibus Budget Reconciliation Act of 1990 (OBRA-90), 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.
DATES: The comment period expires May 5, 2003. Comments received after
this date will be considered if it is practical to do so, but the NRC
is able to ensure only that comments received on or before this date
will be considered. Because OBRA-90 requires that the NRC collect the
FY 2003 fees by September 30, 2003, requests for extensions of the
comment period will not be granted.
ADDRESSES: Mail written comments to: Secretary, U.S. Nuclear Regulatory
Commission, Washington, DC 20555-0001, ATTN: Rulemakings and
Adjudications Staff. Hand deliver comments to: 11555 Rockville Pike,
Rockville, Maryland 20852, between 7:30 am and 4:15 pm Federal
workdays. (Telephone 301-415-1966). Comments may be faxed to (301) 415-
1101.
Comments may also be submitted via the NRC's 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 NRC's rulemaking site, contact Ms.
Carol Gallagher, 301-415-5905; e-mail [email protected].
With the exception of restricted information, documents created or
received at the NRC after November 1, 1999, are also 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 e-mail to [email protected].
In addition to being available in ADAMS, the agency workpapers that
support these proposed changes to 10 CFR parts 170 and 171 may also be
examined during the 30-day comment period at the NRC Public Document
Room, Room O-1F22, One White Flint North, 11555 Rockville Pike,
Rockville, MD 20852-2738.
FOR FURTHER INFORMATION CONTACT: Robert Carlson, telephone 301-415-
8165; or Ann Norris, telephone 301-415-7807; Office of the Chief
Financial Officer, U.S. Nuclear Regulatory Commission, Washington, DC
20555-0001.
SUPPLEMENTARY INFORMATION:
I. Background
II. Proposed Action
III. Plain Language
IV. Voluntary Consensus Standards
V. Environmental Impact: Categorical Exclusion
VI. Paperwork Reduction Act Statement
VII. Regulatory Analysis
VIII. Regulatory Flexibility Analysis
IX. Backfit Analysis
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 (Public Law 108-7),
Congress appropriated $584.6 million to the NRC for FY 2003. The total
amount NRC is required to recover 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. Proposed Action
The NRC is proposing to amend 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 $124.7 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 $399.7 million would 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
[[Page 16375]]
Appropriations Act, 2003, contained in the Consolidated Appropriations
Resolution, 2003 (Public Law 108-7), included NRC's budget for homeland
security activities in the fee base. Therefore, the proposed 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......... -124.7
-----------
Part 171 Fee Collections Required........................... $401.6
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...................... $399.7
------------------------------------------------------------------------
The FY 2003 final fee rule will be a ``major'' final action as
defined by the Small Business Regulatory Enforcement Fairness Act of
1996. Therefore, the NRC's fees for FY 2003 would 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 would be due on the effective date
of the FY 2003 rule. Those materials licensees whose license
anniversary date during FY 2003 falls before the effective date of the
final FY 2003 rule would 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 would be billed for the
annual fee at the FY 2003 annual fee rate during the anniversary month
of the license, and payment would be due on the date of the invoice.
As a matter of courtesy, the NRC plans to continue mailing the
proposed fee rule to all licensees, although, in accordance with its FY
1998 announcement, the NRC has discontinued mailing the final fee rule
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 proposing to make changes to 10 CFR parts 170 and 171 as
discussed in Sections A and B below.
A. Amendments to 10 CFR part 170: Fees for Facilities, Materials,
Import and Export Licenses, and Other Regulatory Services Under the
Atomic Energy Act of 1954, as Amended
The NRC is proposing to establish the hourly rates used to
calculate fees and to adjust the part 170 fees based on the proposed
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
proposing to revise 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 proposed amendments are as follows:
1. Hourly Rates
The NRC is proposing to establish in Sec. 170.20 the two
professional hourly rates for NRC staff time. These proposed rates
would be based on the number of FY 2003 direct program full time
equivalents (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 proposed rate for the reactor
program is $156 per hour ($276,661 per direct FTE). This rate would be
applicable to all activities for which fees are assessed under Sec.
170.21 of the fee regulations. The proposed rate for the materials
program (nuclear materials and nuclear waste programs) is $158 per hour
($280,876 per direct FTE). This rate would be 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
[[Page 16376]]
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 (i.e., 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 $134.1 $34.4
(millions)................................
Overhead Salaries and Benefits, Program 62.3 17.1
Travel 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........................ 1,138.0 294.1
Rate per Direct FTE........................ $276,661 $280,876
Professional Hourly Rate (Rate per direct $156 $158
FTE 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 would be $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
would be $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 proposing to adjust the current part 170 fees in
Sec. Sec. 170.21 and 170.31 to reflect both the proposed 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 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
proposed 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 proposed 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 proposed 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 proposed 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 proposed fee per registration is $620, compared to the
current fee of $450. The proposed 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
[[Page 16377]]
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 would be subject to the
revised fees in this proposed rule.
The NRC is also proposing to expand fee Category 15.A. of Sec.
170.31 to include all categories of radioactive waste import license
applications, and to modify Category 15.B. of Sec. 170.31 to exclude
these types of import license applications. This change is being
proposed 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 summary, the NRC is proposing to amend 10 CFR part 170 to--
1. Establish 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 proposes to revise the annual fees for FY 2003 as follows.
1. Annual Fees
The NRC is proposing to establish 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 would 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 would have increased annual fees
and others would have decreased annual fees.
The annual fees in Sec. Sec. 171.15 and 171.16 would 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 $399.7
million, compared to $345.6 million for FY 2002.
Within the fee classes, the proposed FY 2003 annual fees would
increase for many categories of licenses, decrease for other
categories, and for one category 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
1.0 percent (for licenses authorizing receipt of radioactive waste for
packaging and transfer to others for disposal) to approximately 175
percent (for rare earth facilities). The decreases in annual fees range
from approximately 1.0 percent for DOE's transportation activities 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
authorizing possession and use of byproduct material in sealed sources
for irradiation of materials where the source is not removed from its
shield.
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 proposed rebaselined annual fees for FY
2003 for representative categories of licenses.
Table IV.--Rebaselined Annual Fees for FY 2003
------------------------------------------------------------------------
Proposed FY
Class/category of licenses 2003 Annual
fee
------------------------------------------------------------------------
Operating Power Reactors (including Spent Fuel Storage/ $3,278,000
Reactor Decommissioning annual fee)....................
Spent Fuel Storage/Reactor Decommissioning.............. 309,000
Nonpower Reactors....................................... 68,300
High Enriched Uranium Fuel Facility..................... 5,836,000
Low Enriched Uranium Fuel Facility...................... 1,957,000
UF6 Conversion Facility................................. 839,000
Uranium Mills........................................... 64,800
Transportation:
Users/Fabricators................................... 75,000
Users Only.......................................... 7,000
[[Page 16378]]
Typical Materials Users:
Radiographers....................................... 12,300
Well Loggers........................................ 4,700
Gauge Users......................................... 2,500
Broad Scope Medical................................. 24,900
------------------------------------------------------------------------
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 would be the total surcharge
cost allocated to the various classes of licenses for FY 2003. The NRC
would continue to allocate the surcharge costs, except Low-Level Waste
(LLW) surcharge costs, to each class of licenses based on the percent
of the budget for that class. The NRC would continue to allocate the
LLW surcharge costs based on the volume of LLW disposed of by certain
classes of licenses. The proposed surcharge costs allocated to each
class would be included in the annual fee assessed to each licensee.
The FY 2003 proposed surcharge costs that would be 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
------------
[[Page 16379]]
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 proposed 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. During the 30-
day public comment period, 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 proposed 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 would 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
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%)
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 the proposed annual fees for each licensee
within the subcategories of this class summarized in Table VIII.
Table VIII.--Proposed Annual Fees for Fuel Facilities
------------------------------------------------------------------------
Proposed FY
Facility type 2003 annual
fee
------------------------------------------------------------------------
High Enriched Uranium Fuel.............................. $5,836,000
Uranium Enrichment...................................... 3,634,000
[[Page 16380]]
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 would be assessed to DOE. The
remaining $0.5 million would 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 would
result 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 would be 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..... 495,513
50% of uranium recovery surcharge........................ 70,829
----------
Total Annual Fee Amount for DOE...................... 959,569
Annual Fee Amount for UMTRCA Title II Specific Licenses:
50% of generic/other uranium recovery budgeted costs..... 495,513
50% of uranium recovery surcharge........................ 70,829
----------
Total Annual Fee Amount for Title II Specific 566,342
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
----------------------------------------------------------------------------------------------------------------
Applying these factors to the $0.5 million in budgeted costs to be
recovered from Title II specific licensees results in the following
proposed annual fees:
Table X.--Annual Fees for Title II Specific Licenses
------------------------------------------------------------------------
Proposed FY
Facility type 2003 annual
fee
------------------------------------------------------------------------
Class I (conventional mills)............................ $64,800
Class II (solution mining).............................. 54,300
11e.(2) disposal........................................ 40,000
11e.(2) disposal incidental to existing tailings sites.. 6,300
------------------------------------------------------------------------
[[Page 16381]]
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 $308.8 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, would be divided equally
among the 104 power reactors licensed to operate. This results in a
proposed FY 2003 annual fee of $2,969,000 per reactor. Additionally,
each power reactor licensed to operate would be assessed the proposed
FY 2003 spent fuel storage/reactor decommissioning annual fee of
$309,000. This would result in a total FY 2003 annual fee of $3,278,000
for each power reactor licensed to operate.
d. Spent Fuel Storage/Reactor Decommissioning. For FY 2003,
budgeted costs of approximately $37.3 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 would be divided equally among the 121 licensees,
resulting in a proposed FY 2003 annual fee of $309,000 per licensee.
e. Non-power Reactors. Approximately $273,000 in budgeted costs is
to be recovered through annual fees assessed to the non-power reactor
class of licenses for FY 2003. This amount would be divided equally
among the four non-power reactors subject to annual fees. This results
in a proposed FY 2003 annual fee of $68,300 for each licensee.
f. Rare Earth Facilities. The FY 2003 budgeted costs of
approximately $377,000 for rare earth facilities to be recovered
through annual fees would 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 proposed
FY 2003 annual fee of $189,000 for each of the two remaining rare earth
facilities.
g. Materials Users. To equitably and fairly allocate the $23.9
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 proposed annual fee for each fee category is shown in Sec.
171.16(d).
h. Transportation. Off 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 would 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 would
be 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 would be allocated only to the 40 quality
assurance plans authorizing use and design/fabrication. This results in
a proposed annual fee of $7,000 for each of the holders of quality
assurance plans that authorize use only, and a proposed annual fee of
$75,000 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 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 proposing to retain the $2,300 small entity
annual fee and the $500 lower tier small entity
[[Page 16382]]
annual fee for FY 2003. The NRC plans to re-examine the small entity
fees again in FY 2005.
In summary, the NRC is proposing to--
1. Establish rebaselined annual fees for FY 2003;
2. Retain the current reduced fees for small entities.
III. Plain Language
The Presidential Memorandum dated June 1, 1998, entitled, ``Plain
Language in Government Writing,'' directed that the Federal
government's writing be in plain language (63 FR 31883; June 10, 1998).
The NRC requests comments on this proposed rule specifically with
respect to the clarity and effectiveness of the language used. Comments
on the language used should be sent to the NRC as indicated under the
ADDRESSES heading.
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 proposed 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 proposed 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 proposed 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 proposed 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 proposed 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 proposed 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 16383]]
fairly and equitably allocates the aggregate amount of these charges
among licensees.
This proposed rule would establish the schedules of fees that are
necessary to implement the Congressional mandate for FY 2003. The
proposed rule would 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 CFR 2.810. The
Regulatory Flexibility Analysis, prepared in accordance with 5 U.S.C.
604, is included as Appendix A to this proposed rule.
The Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA) was signed into law on March 29, 1996. 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 proposed rule and that a backfit analysis is not
required for this proposed rule. The backfit analysis is not required
because these proposed amendments do not require the modification of or
additions to systems, structures, components, 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.
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.
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. 553, the NRC is proposing to
adopt 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
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).
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
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 16384]]
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.
* * * * *
6. 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 16385]]
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.
4. Waste disposal and processing:
[[Page 16386]]
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
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.
[[Page 16387]]
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 16388]]
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
7. 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).
8. 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 $3,278,000.
(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 $309,000.
(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--$68,300
Test reactor--$68,300
12. 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:
------------------------------------------------------------------------
Maximum 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 16389]]
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 fees
Category of materials licenses \1\ \2\ \3\
------------------------------------------------------------------------
1. Special of 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............. 1,957,00
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, 4,600
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\.......................... 64,800
Class II facilities \4\......................... 54,300
Other facilities \4\............................ 189,000
(3) Licenses that authorize the receipt of byproduct 40,000
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 16390]]
(4) Licenses that authorize the receipt of byproduct 6,300
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............... 11,500
3. Byproduct material:
A. Licenses of broad scope for possession and use of 22,000
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, 11,000
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 stmaterial. 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. 4,800
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 6,700
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 24,200
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 6,100
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 6,200
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 11,900
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 6,200
services are subject to the fees specified in
fee Categories 4A, 4B, and 4C
O. Licenses for possession and use of byproduct 12,300
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 10,400
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 16391]]
C. Licenses specifically authorizing the receipt of 7,500
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 23,300
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 11,200
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 24,900
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 1,400
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 740
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........................... 75,000
Users........................................... 7,000
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 \12\ N/A
10 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 230,000
Government agencies....................................
18. Department of Energy:
A. Certificates of Compliance....................... \10\ 1,359,000
B. Uranium Mill Tailing Radiation Control Act 960,000
(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 16392]]
\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 27th day of March, 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 Proposed Rule--Draft 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 proposed 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 would 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 16393]]
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 proposing to retain 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 16394]]
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\
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\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.
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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 16395]]
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) 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. 03-7814 Filed 4-2-03; 8:45 am]
BILLING CODE 7590-01-P