[Federal Register Volume 65, Number 113 (Monday, June 12, 2000)]
[Rules and Regulations]
[Pages 36946-36975]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-14496]



[[Page 36945]]

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Part III





Nuclear Regulatory Commission





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10 CFR Parts 170 and 171



Revision of Fee Schedule; 100% Fee Recovery, FY 2000; Final Rule

Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules 
and Regulations

[[Page 36946]]


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NUCLEAR REGULATORY COMMISSION

10 CFR Parts 170 and 171

RIN 3150-AG50


Revision of Fee Schedules; 100% Fee Recovery, FY 2000

AGENCY: Nuclear Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Nuclear Regulatory Commission (NRC) is amending the 
licensing, inspection, and annual fees charged to its applicants and 
licensees. The amendments are necessary to implement the Omnibus Budget 
Reconciliation Act of 1990 (OBRA-90), as amended, which mandates that 
the NRC recover approximately 100 percent of its budget authority in 
Fiscal Year (FY) 2000, less amounts appropriated from the Nuclear Waste 
Fund (NWF). The amount to be recovered for FY 2000 is approximately 
$447.0 million.

EFFECTIVE DATE: August 11, 2000.

ADDRESSES: Copies of comments received and the agency work papers that 
support these final changes to 10 CFR Parts 170 and 171 may be examined 
at the NRC Public Document Room, 2120 L Street, NW, Washington, DC 
20555. Comments received may also be viewed via the NRC's interactive 
rulemaking website http.//ruleforum.llnl.gov). This site provides the 
ability to upload comments as files (any format), if your web browser 
supports that function. For information about the interactive 
rulemaking site, contact Ms. Carol Gallagher, 301-415-5905; e-mail 
<a href="/cdn-cgi/l/email-protection#efacaea8af819d8cc1888099"><span class="__cf_email__" data-cfemail="a9eae8eee9c7dbca87cec6df">[email protected]</span></a>.
    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/NRC/ADAMS/index.html. From this site, 
the public can gain entry into the NRC's Agencywide Document 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, 202-634-3273 or by email 
to <a href="/cdn-cgi/l/email-protection#6f1f0b1d2f011d0c41080019"><span class="__cf_email__" data-cfemail="176773655779657439707861">[email protected]</span></a>.

FOR FURTHER INFORMATION CONTACT: Glenda Jackson, Office of the Chief 
Financial Officer, U.S. Nuclear Regulatory Commission, Washington, DC 
20555-0001, Telephone 301-415-6057.

SUPPLEMENTARY INFORMATION:

I. Background.
II. Responses to Comments.
III. Final Action.
IV. Voluntary Consensus Standards.
V. Environmental Impact: Categorical Exclusion.
VI. Paperwork Reduction Act Statement.
VII. Regulatory Analysis.
VIII. Regulatory Flexibility Analysis.
IX. Backfit Analysis.
X. Small Business Regulatory Enforcement Fairness Act.

I. Background

    OBRA-90, as amended, requires that the NRC recover approximately 
100 percent of its budget authority, less the amount appropriated from 
the Department of Energy (DOE) administered Nuclear Waste Fund (NWF). 
Certain NRC costs related to reviews and other assistance provided to 
the Department of Energy (DOE) and other Federal agencies are excluded 
from the fee recovery requirement for FY 2000 by the FY 2000 Energy and 
Water Development Appropriations Act.
    The NRC assesses two types of fees to recover its budget authority. 
First, license and inspection fees, established at 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 the issuance of new licenses, approvals 
or renewals, and amendments to licenses or approvals. Second, annual 
fees, established in 10 CFR Part 171 under the authority of OBRA-90, 
recover generic and other regulatory costs not recovered through 10 CFR 
Part 170 fees.
    This final rule is based on the current 100 percent fee recovery 
requirement under OBRA-90. To address fairness and equity concerns 
related to NRC licensees paying for agency expenses which do not 
provide a direct benefit to them, the NRC has submitted legislation to 
the Congress which would reduce the fee recovery amount, beginning in 
FY 2001. The Senate has passed legislation that would reduce the fee 
recovery amount to 98 percent for FY 2001, and further reduce the fee 
recovery amount by an additional two percent per year in FYs 2002 
through 2004, and by 4 percent in FY 2005, for a final fee recovery 
requirement of 88 percent in FY 2005.
    Also, in the FY 1999 final fee rule published June 10, 1999 (64 FR 
31450), the NRC responded to a comment requesting that NRC designate as 
small entities, for reduced fee purposes, all those companies with 
small business certification under the U.S. Small Business 
Administration's (SBA) Small Disadvantaged Business Program, commonly 
known as the 8(a) Program. The Commission agreed to give further 
consideration to the issue raised by this commenter.
    The Commission has declined to adopt the suggested approach, for 
the following reasons. On April 11, 1995 (60 FR 18344), the NRC 
promulgated a final rule, after notice and comment rulemaking, that 
revised its size standards. The final rule established the small entity 
classification applicable to small businesses as follows. Those 
companies providing services having no more than $5 million in average 
annual gross receipts over its last three completed fiscal years, or, 
for manufacturing concerns, having an average of 500 or fewer employees 
during the preceding 12-month period qualify as small entities (10 CFR 
2.810).
    The NRC promulgated this rule pursuant to Section 3(a)(2) of the 
Small Business Act, which permits Federal agencies to establish size 
standards via notice and comment rulemaking, subject to the approval of 
the SBA Administrator. Unlike the NRC, the SBA's Standard Industrial 
Classification (SIC) System establishes size standards based on types 
of economic activity or industry. The NRC rule, which the SBA approved, 
established generic size standards for small businesses because NRC's 
regulatory scheme is not well suited to setting standards for each 
component of the regulated nuclear industry.

II. Responses to Comments

    The NRC published a proposed rule that presented the amendments 
necessary to revise the licensing, inspection, and annual fees charged 
to its licensees and applicants for FY 2000 on March 27, 2000 (65 FR 
16250). A total of 13 comments were received on the proposed rule. Many 
of the comments were similar in nature. These comments have been 
grouped, as appropriate, and addressed as single issues in this final 
rule.
    The comments are as follows:

A. Legal Issues

1. NRC's Interpretations of OBRA-90 and IOAA
    Comment. Several commenters again raised questions about the NRC's 
legal interpretations of OBRA-90 and the IOAA. For example, some 
commenters argued that OBRA-90 prohibits exemptions from Part 170 fees, 
and that accordingly the NRC must charge federal agencies, state 
agencies, and state licensees fees under Part 170 for

[[Page 36947]]

specific services rendered. The same commenters claim that the current 
fee structure denies reactor licensees due process and equal protection 
under the U.S. Constitution.
    Response. These arguments are not new, all having been raised by 
the same commenters when the fee schedules were revised for FY 1999. In 
the FY 1999 final fee rule, the NRC carefully set forth both these 
comments and the NRC's responses to them. The NRC's response explained 
how the current fee structure fully complies with all statutory and 
constitutional requirements. Because last year's discussion was 
sufficiently detailed, and because there have been no new legal 
developments over the past year that would call for a different 
resolution of the issues, interested parties are referred to the FY 
1999 final fee rule responses to comments (64 FR 31448-50; June 10, 
1999).
    However, there is one update to the discussion in the June 10, 
1999, final rule that outlines actions NRC has taken over the past six 
years to reduce any residual inequity and unfairness in the current fee 
structure (64 FR 31450; June 10, 1999). Among those actions has been 
consistent support for legislation that would address the remaining 
fairness and equity issues by decreasing the amount of NRC's budget to 
be recovered through fees. The Senate has passed legislation that would 
reduce the fee recovery amount by 2 percent per year in FYs 2001 
through 2004, and by 4 percent in FY 2005, resulting in a final fee 
recovery requirement of 88 percent in FY 2005 (S. 1627).
2. Information Provided by NRC in Support of Proposed Rule
    Comment. One commenter complained that, in deriving the FY 2000 
annual fees by simply escalating last year's fee by 1.4 percent, the 
NRC has not given ``any consideration'' to whether underlying costs 
have any rational connection to reactor regulation or any consideration 
of whether the total assessment is as fair and equitable as is 
feasible. The commenter also claims that the proposed rule fails to 
provide ``any explanation and accounting of the expenses that are 
covered by this charge,'' and thus ``denies the companies a meaningful 
opportunity to comment.''
    Another commenter indicated that, under the provisions of the 
Administrative Procedure Act, the NRC has not provided sufficient 
information to enable licensees to evaluate costs. For instance, the 
NRC should provide detailed cost information associated with each 
component of reactor regulation and other generic costs. The commenter 
believes this would provide for more effective feedback and comment and 
would promote increased Commission efficiency because the costs of 
services and other agency expenses, such as overhead, would be more 
visible to stakeholders. The commenter also requested that NRC provide 
a more detailed account of major research contracts, their purpose, and 
their costs.
    Response. The NRC believes there is nothing obscure about the 1.4 
percent increase in annual fees or its relation to reactor regulation. 
The FY 2000 proposed rule clearly describes the calculation that leads 
to the 1.4 percent increase (65 FR 16251, 16253-4; March 27, 2000). 
This calculation is also repeated in this final rule. In addition, the 
proposed rule announced the availability of the agency's work papers 
that support these calculations. Furthermore, the NRC has made 
available in the Public Document Room NUREG-1100, Volume-15, ``Budget 
Estimates and Performance Plan, Fiscal Year 2000 (February 1999).'' 
This document discusses the NRC's budget for FY 2000 in detail, 
including the activities to be performed in each strategic arena. 
Reactor-related research activities are described under the Nuclear 
Reactor Safety arena. These explanations satisfy all legal requirements 
and afford commenters ample information upon which to base their 
comments.
    The fact that the NRC decided to derive the FY 2000 annual fees by 
means of a percentage increase in no way indicates that the fee was 
derived without regard to the costs of reactor regulation. To the 
contrary, the very decision to proceed by percentage increase is based 
on a consideration of, among other things, whether there has been a 
substantial change in the magnitude of the budget allocated to a 
specific class of licensees. The percent change method exists not so 
the agency can avoid the effort of making the best possible match 
between fees and services, but rather to give licensees some cost 
stability. Last year the NRC solicited comment on whether it should 
retain the percent change method or rebaseline annual fees every year 
(63 FR 15884; April 1, 1999). The majority of commenters favored 
continued use of the percent change method because they desired some 
stability in fees. The Commission has retained this method, with the 
additional provision that fees will be rebaselined at least every three 
years.
    The total budgeted amount to be recovered in FY 2000 through fees 
charged to NRC applicants and licensees actually decreased by 
approximately $2.6 million from the FY 1999 level. The slight increase 
in annual fees is therefore primarily a result of the absence of a 
carryover from prior years, a decrease in estimated payments for prior 
year invoices, and a reduction in the number of licensees. Although 
inflation ran 2.4 percent over FY 1999, the annual fees are increasing 
only 1.4 percent.
    The NRC emphasizes that, considering inflation, the NRC's budget, 
in real terms, is down once again--to an all-time low. It represents a 
25 percent decrease in the last 7 years alone and staffing levels are 
their lowest in 20 years. This has all been achieved while the NRC has 
expended large resources in extraordinary reform efforts, particularly 
in enforcement and power reactor oversight.

B. Specific Part 170 Issues

1. Project Manager Billings Issues
    Comment. Uranium recovery industry commenters strongly opposed the 
NRC's current billing method for Project Managers (PMs). Many of these 
comments were directed towards the unfairness of certain types of PM 
activities being charged to licensees that had little or no apparent 
connection to the sites the PMs were managing, such as Combined Federal 
Campaign activities or support to other offices. One commenter stated 
that indirect PM charges should be captured under Part 171 annual fees 
versus Part 170 fees due to the inequities of the NRC's current billing 
system, thereby allowing indirect PM charges to be evenly distributed 
to all uranium recovery licensees paying annual fees. Another concern 
was the unequal distribution of PMs to licensee sites, thereby 
subjecting certain licensees to a disproportionate share of indirect 
(e.g., administrative) PM costs.
    Response. In FYs 1998 and 1999, the NRC shifted cost recovery for 
certain activities from Part 171 annual fees to Part 170 fees. As part 
of this effort, in FY 1999, the NRC made a conscious decision to 
recover the full costs for PMs, with the exception of PM activities 
that are generic in nature (e.g., rulemaking and preparation of generic 
guidance documents, etc.) and leave time, through Part 170 fees. This 
decision is consistent with Title V of the IOAA, interpretations of 
that legislation by the Federal courts, and previous Commission 
guidance. In summary, these guidelines provide that Part 170 fees may 
be assessed to persons who are identifiable recipients of ``special 
benefits'' conferred by specifically identified activities of the NRC. 
These

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special benefits include services rendered at the request of a 
recipient and all services necessary to the issuance of a required 
permit, license, certificate, approval, amendment, or other services 
necessary to assist a recipient in complying with statutory obligations 
under the Commission's regulations.
    With the exception of generic activities and leave time, PM 
activities are services which the NRC provides to specific, 
identifiable beneficiaries (i.e., the site or sites to which the PM is 
assigned). Thus, as the NRC stated in the FY 1999 final rule, it is 
more appropriate that the costs of these activities be recovered 
through Part 170 fees assessed to the recipient of the service than 
through annual fees assessed to all of the licensees in a particular 
class (64 FR 31448; June 10, 1999). This results in licensees who have 
ceased operations being charged for the full costs of PMs assigned to 
their sites. If indirect PM costs were included in the Part 171 annual 
fee, then only operating licensees, licensees in standby, and power 
reactor licensees who are in decommissioning or possession only status 
and having fuel on-site would pay these PM costs.
    As indicated in the final FY 1999 fee rule, the NRC readily 
acknowledges that certain PM activities are not directly related to a 
specific licensing action or inspection, or even to a specific site. 
However, these activities are part of the costs to the agency of 
providing the PM services, and these costs are most appropriately 
recovered from the licensee benefitting from those services. Day-to-day 
PM activities to be recovered through Part 170 fees include the general 
management and oversight of the particular site or sites to which they 
are assigned, and general activities such as training, travel, general 
correspondence, staff meetings, coordination with and support to other 
offices, and processing documents into the NRC's Agencywide Document 
Access and Management System (ADAMS). A review of the PM time reported 
in the first two quarters of FY 2000 indicates that approximately 10-15 
percent of a PM's time is spent on general or non-site specific 
administrative duties. The NRC believes it is appropriate to recover 
the costs for this small percentage of the PM's time from the assigned 
site or sites as a necessary function in support of the NRC's overall 
mission.
    The NRC stated in the FY 1999 final rule that leave time would be 
excluded from PM time billed under Part 170. For purposes of Part 170 
fees for PMs and resident inspectors, leave time includes approved 
leave, excused absences, and absences in a duty status. After further 
review, the NRC has determined that Combined Federal Campaign 
activities are most appropriately identified as an excused absence for 
fee billing purposes, and thereby excluded from Part 170 fee 
assessments. Accordingly, NRC is adjusting those Part 170 invoices that 
included these charges.
    The NRC understands some commenters' concerns about the unequal 
distribution of licensee sites among PMs in the NRC's uranium recovery 
program. In the case of PMs assigned to more than one license or site, 
the PM time that is not directly related to a specific site or to 
generic activities is prorated to each of the assigned licenses or 
sites. A site having a fully dedicated PM should bear more of the PM's 
general and administrative costs, and therefore the distribution of 
these costs between the licensees in the fee class reflects the 
proportion of time devoted to one or more sites. As previously noted, 
this time is a small percentage of the total PM's time.
2. Hourly Rates
    Comment. Several uranium recovery commenters stated the hourly rate 
of $143 for PMs/professional staff was excessive considering that 
senior-level private consultants in the industry charge far less for 
comparable services. A reactor licensee called the $3 per hour increase 
unacceptable, and suggested that NRC help the regulated community by 
controlling and reducing annual fees, not increasing them to ``pay 
higher wages.'' Another commenter requested that before issuing the FY 
2000 final fee rule, the NRC address the NRC's Office of the Inspector 
General (OIG) recommendation to evaluate the hourly rate methodology. 
This commenter believes no substantive justification has been given for 
formulating hourly rates by using budget data rather than actual data 
from previous year's billings.
    Response. The NRC's hourly rates are established to recover the 
cost of maintaining a professional employee, such as salaries and 
benefits and overhead, and to recover general and administrative costs, 
such as heat, lighting, and supplies. These budgeted costs are incurred 
whether a professional employee is performing work that is billable 
under Part 170 or work that is recovered through annual fees. The time 
spent by a professional employee in performing work that is subject to 
Part 170 fees is traced to the billable activities and charged at the 
professional hourly rate to the recipient of the service. Any direct 
contract support costs incurred in providing the service are also 
traced and billed directly to the recipient. Because the hourly rate is 
not intended to be used only for work that is billable under Part 170, 
the NRC believes it is more appropriate to use budget data than to base 
the hourly rate calculations on historical Part 170 type billing data.
    The NRC is revising the professional hourly rates to $143 for the 
nuclear materials and nuclear waste program and $144 for the reactor 
program. As required by OBRA-90, the NRC must recover approximately 100 
percent of its budget authority, less the appropriation from the 
Nuclear Waste Fund, through either fees for direct services (Part 170) 
or annual fees (Part 171). The professional hourly rates, which are 
based on budgeted costs, must be established at these levels to meet 
the fee recovery requirement.
    The revised professional hourly rates of $143 and $144 mark a $3 
per hour increase over FY 1999. This is primarily attributable to the 
Government-wide pay increase which went into effect January 2000. This 
equates to approximately a 2 percent increase over the previous year 
for professional hourly rates, while at the same time inflation, as 
measured by the Consumer Price Index, was approximately 2.4 percent.
    With regard to the OIG's findings and recommendations, the 
Commission continues to assert that its fee schedules are in full 
compliance with the requirements of OBRA-90, IOAA, and OMB Circular A-
25. The NRC's methodology for calculating the IOAA fees was upheld by 
the Court in Mississippi Power & Light v. NRC [601 F. 2d 223 (5th Cir. 
1979) cert. denied 444 U.S. 1102 (1980)]. Further, a comprehensive 
response was published with the OIG report concerning the NRC fee 
development process, which may be accessed via the NRC's homepage 
(http://www.nrc.gov). Interested individuals may review the response in 
detail by selecting ``Reference Library,'' then ``IG Audit Rpts,'' then 
``99A-01''.
3. Invoice Information
    Comment. Several commenters expressed concern over the lack of 
appropriate invoice detail regarding quarterly billings for NRC staff 
services provided to licensees.
    Response. The NRC believes that sufficient information is currently 
provided to licensees or applicants on which to base payment of 
invoices. The NRC has addressed this issue previously in a similar 
response to the American Mining Congress (now the National Mining 
Association) (60 FR 20918; April 28, 1995). The NRC's invoices for 
full-cost licensing actions and inspections

[[Page 36949]]

currently contain information detailing the type of service for which 
the costs are being billed, the date or date range the service was 
performed, the number of professional staff-hours expended in providing 
the service, the hourly rate, and the contractual costs incurred.
    A licensee or applicant who does not understand the charges, or who 
feels it needs more information to interpret a bill, may request 
additional information from the NRC regarding the specific bill in 
question. The NRC will provide all available data used to support the 
bill in response to this type of request. Additionally, if requested, 
the NRC program staff will provide a best estimate of the hours 
required to complete a specific licensing action, with the caveat that 
the actual hours expended may differ from that estimate based on 
certain circumstances (e.g., timeliness of submittals, quality of 
products being submitted for review, etc.). However, OMB Circular A-25, 
which establishes guidelines for Federal agencies to assess fees for 
Government services, provides that new cost accounting systems need not 
be created solely for the purpose of determining or estimating full 
cost. Therefore, the NRC does not currently plan to develop additional 
systems solely to provide further details to support the fee invoices.

C. Specific Part 171 Issues

1. Percentage Change Methodology
    Comment. One commenter stated that, although it agrees that fee 
stability is ``a reasonable goal,'' and rebaselining might require more 
resources, the ``industry'' believes annual fees should be rebaselined 
each year. The commenter believes that annual rebaselining would serve 
to promote agency efficiency by focusing on the value of the programs 
and other changes that have an impact on resource requirements. The 
commenter referenced a recent audit by the OIG which concluded that 
extended use of the percentage change method may result in a deviation 
from associating fees with the costs of services provided.
    Response. After evaluating all pertinent factors, the Commission 
has determined that the use of the percentage change method for 
determining FY 2000 annual fees does not result in a loss of the 
required ``reasonable relationship'' between fees and the costs of 
providing services. In the FY 1999 proposed fee rule (64 FR 15884; 
April 1, 1999), the Commission specifically solicited public comment on 
whether the NRC should continue to use the percent change method and 
rebaseline fees every several years, or return to a policy of 
rebaselining annual fees every year. The majority of the comments 
received on this issue supported continuing the use of the percent 
change method, and rebaselining every several years as warranted. These 
commenters were concerned about fee stability and predictability. 
Therefore they did not favor annual rebaselining.
    Before FY 1999, Commission policy required that annual fees be 
rebaselined every five years, or earlier if there was a substantial 
change in the total NRC budget or in the magnitude of the budget 
allocated to a class of licensees. In FY 1999, based on experience 
gained as a result of applying the criteria for rebaselining over the 
previous four years, the Commission implemented a revised policy 
requiring that future annual fees be rebaselined every three years, or 
earlier if warranted. The Commission's decision on the appropriate 
method for establishing annual fees (i.e., rebaselining or percentage 
change) is made each year after considering the criteria for 
rebaselining and all relevant facts.
2. Small Entity Fee Increase
    Comment. Several comments were received on the proposed 25 percent 
increase in the small entity annual fees. Some commenters indicated 
that a 25 percent increase would have negative economic impacts on 
their businesses. These commenters said it would be difficult for them 
to recover the increase, and it could force some small companies to 
give up their licenses. One commenter attributed the reason for the 
proposed small entity fee increase to the decrease in the number of 
licensees. This commenter said that businesses faced with reduced sales 
would not be able to increase prices, but rather would be forced to 
reduce their budgets, and that this would be an obvious solution for 
the NRC to follow. Two commenters noted that while the annual fee 
assessed to small entities would increase by 25 percent, the annual fee 
for certain other licensees, such as gauge users, would not increase.
    Several commenters suggested alternatives to the current basis for 
the small entity annual fee. One commenter suggested that the fee be 
based on net receipts or receipts from regulated activities instead of 
gross receipts. Another recommended that the small entity fee be based 
on the number of gauges owned or leased. This commenter indicated that 
there are increased licensing and inspection costs associated with 
larger numbers of gauges and there would be no additional expense for 
licensees to provide this information because they already maintain a 
gauge inventory. A third commenter requested that small entity size 
standards be established for reactor licensees based on the utility's 
total capacity, number of employees, customers in the rate base, or a 
combination of these factors.
    Some commenters requested that the NRC establish more tiers or 
levels of fees, indicating that the spread between the current tiers is 
too great. One commenter said one company should not be burdened with 
the same fee as a company with fourteen times the gross receipts. 
Another commenter said the current lower tier of $350,000 in annual 
gross receipts should be increased to $1 million to reflect FY 2000 
equivalent dollars.
    Response. The NRC is increasing the small entity annual fee and the 
lower tier small entity fee by 25 percent in this final rule. This is 
the first change to the small entity fee amounts since their 
introduction in FYs 1991 and 1992. While NRC recognizes the effect this 
increase may have on some small entities, the NRC believes this action 
strikes a balance between the requirement of OBRA-90 to collect 
approximately 100 percent of the NRC's budget authority through fees, 
and the Regulatory Flexibility Act (RFA) requirement to consider the 
impact of agency actions on small entities.
    The NRC has determined that assessing costs to the materials class 
of licensees which are attributable to that class, as indicated in the 
Conference report accompanying OBRA-90, results in a significant impact 
on a substantial number of small entities. However, the NRC is not 
required to reduce or eliminate the impact on small businesses, but to 
evaluate the impact and explain its decisions. The NRC has developed 
the Regulatory Flexibility Analysis for this final rule (see Appendix A 
to this document). Given the conflicting goals of OBRA-90 and the RFA, 
the Commission determined that the impact on small entities should be 
reduced by establishing a maximum annual fee for licensees who qualify 
as small entities.
    In order to recover approximately 100 percent of the budget as 
required by law, other licensees must pay for costs not recovered from 
small entities. With the 25 percent increase to the small entity annual 
fees, the FY 2000 small entity subsidy to be recovered from other 
licensees is approximately $5.6 million; without the increase the 
subsidy would be approximately $6.0 million. The 25 percent increase 
means that small entities will pay more of the

[[Page 36950]]

costs attributable to them, but still benefit from reduced annual fees. 
For most fee categories, the $2,300 annual fee per license category for 
small entities is approximately 26 percent less than the $3,400 in 
average total fees paid by small entities in FY 1991.
    In order to put this increase in perspective, it must be recognized 
that the small entity fee policy represents a subsidy program, for 
which small entities are paying only a small percentage of the costs 
attributable to them. The small entity annual fee levels have remained 
constant since they were established in FY 1991 and FY 1992, despite 
the fact that some types of NRC activities previously billed separately 
under Part 170 have been absorbed into the annual fee. Therefore, small 
entities have benefitted from the additional activities covered by the 
annual fees, but without the associated expense.
    The 25 percent increase in the small entity annual fee is not due 
to a decrease in the number of licensees as one commenter believes. A 
decrease in the number of licensees is a contributing factor in the 
overall 1.4 percent increase in FY 2000 annual fees. However, the 25 
percent increase in the small entity annual fee results from changes 
that have occurred in the types of costs recovered through annual fees 
and increases to costs since the $1,800 small entity fee was 
established. When the $1,800 maximum small entity annual fee was 
established in FY 1991, small entities also paid fees for inspections, 
amendments, and license renewals, resulting in an average of $3,400 in 
fees paid by small entities per year. However, since 1991 the 
inspection, amendment, and renewal fees have been eliminated from Part 
170 charges and have been incorporated in the annual fees assessed to 
the materials class of licensees. As a result of these and other 
changes, the average total fees paid per year by other materials 
licensees increased by approximately 25 percent, from $6,700 in FY 1991 
to $8,400 in FY 1999. For the same period, the average total fees paid 
per year by small entities decreased approximately 47 percent, from 
$3,400 in FY 1991 to $1,800 in FY 1999.
    The NRC's size standards, which are codified in 10 CFR 2.810, are 
outside the scope of this rulemaking. Therefore, commenters' 
suggestions that the size standards be revised are not being addressed 
in this final rule. The NRC's receipts-based size standard for small 
businesses not engaged in manufacturing is based on the most commonly 
used Small Business Administration (SBA) size standard of $5.0 million 
in annual gross receipts for these types of businesses. Gross receipts 
include revenues from sales of products or services, interest, rent, 
fees, commissions and/or whatever sources derived.
    The NRC has considered comments that the fees for small businesses 
be based on such factors as the number of gauges used, the volume of 
patients administered to, or receipts from the use of regulated 
activities in each fiscal year fee rulemaking, beginning in FY 1991 (56 
FR 31472; July 10, 1991, at pp. 31511-31512, et al.). The NRC has 
consistently rejected these alternatives because they would not 
necessarily meet the goal of the RFA to minimize the impact of agency 
actions on small entities. For example, if the NRC based the reduced 
annual fee on the number of gauges owned, a large firm with only one 
gauge would get a reduced fee, while a small business with more than 
one gauge would pay a larger fee. Similarly, a large medical 
establishment would pay a reduced fee if only a small part of its 
business involved nuclear procedures, whereas a small medical facility 
whose entire business involves nuclear procedures would pay a larger 
fee. Basing the fees on the small entity size standards ensures that 
benefits of the reduced fees apply only to small entities.
    In FY 1999, approximately 43 percent of the licensees qualifying as 
small entities for purposes of reduced annual fees qualified for the 
lower-tier small entity fee. Therefore, because the current lower tier 
fee significantly reduces the impact of the annual fee for licensees 
with relatively low gross annual receipts or supporting populations, 
the NRC does not believe any additional tiers are appropriate.
3. Effects of Shifting Cost Recovery From Part 171 to Part 170
    Comment. Some commenters indicated that the NRC's attempt to shift 
cost recovery from Part 171 to Part 170 is illusory at best and 
represents no real savings to the licensee. They further expounded that 
shifting these costs to Part 170 fees has not resulted in an offsetting 
decrease in Part 171 fees, thereby exacerbating an already unfair and 
inequitable situation.
    Response. It is incorrect to assume that Part 170 have increased 
with no corresponding drop in Part 171 fees. As required by OBRA-90, 
the Part 171 annual fee recovery amounts are offset by the estimated 
Part 170 fee collections. The estimated collections for FY 2000 include 
a $2.4 million increase in estimated Part 170 fees, from $103.5 million 
in FY 1999 to $105.9 million for FY 2000. This increase is largely 
attributable to changes in Commission policy included in the FY 1999 
final fee rule, such as billing full cost under Part 170 for PMs, 
performance assessments, incident investigations, and reviews of 
reports and other documents that do not require formal or legal 
approval. However, this increase is offset by other factors, as 
described in the proposed fee rule (65 FR 16253, 16254; March 27, 
2000). To reiterate, as the NRC explained in the FY 1999 proposed and 
final fee rules (64 FR 15876; April 1, 1999; and 64 FR 31458; June 10, 
1999), a $4.1 million carryover from additional FY 1998 collections was 
applied to FY 1999 collections, thereby reducing the total fee recovery 
amount for FY 1999. However, this carryover does not exist for FY 2000. 
The $1.7 million decrease in estimated total collections for FY 2000 is 
the difference between the $4.1 million carryover from additional 1998 
collections and the estimated $2.4 million increase in Part 170 
collections for FY 2000 as compared to FY 1999. In addition, the FY 
2000 net annual fee billing adjustment, which is for invoices that will 
not be paid in FY 2000, the small entity subsidy, and payments received 
in FY 2000 for FY 1999 invoices, is approximately $5.7 million, 
compared to the FY 1999 adjustment of $3.2 million. As a result of 
these changes, which are summarized in Table II of this final rule, the 
total Part 171 billing amount increased from $345.1 million in FY 1999 
to $346.7 million in FY 2000. In addition, there are approximately 530 
fewer licensees available to pay the annual fees in FY 2000, primarily 
because Ohio became an Agreement State in August, 1999.
 4. Impacts of the Revised Annual Fees on Licensees
    Comment. Several commenters stated that the NRC's FY 1999 
rebaselining placed a significant financial burden on the uranium 
recovery industry due to increased fees and that uranium recovery 
licensees bore a disproportionate share of the cost burden from this 
process. Many uranium recovery commenters asserted the uranium market 
is depressed and at a historical low. These commenters claimed that the 
NRC's current fee structure is excessive and unfair to the uranium 
recovery industry class of licensee. Furthermore, they indicated that 
licensees do not have the capability of passing through these 
additional costs to the consumer, thereby adversely affecting the 
viability of some companies. A reactor licensee who referred to the 
challenge of the competitive, unregulated marketplace

[[Page 36951]]

for utilities, commented that the cost of regulating the industry is 
passed on to the consumer. This commenter indicated that businesses do 
not locate in the company's area, or end up leaving the area, because 
the electric rates there are among the highest in the State.
    Response. The NRC acknowledges the commenters' concern about the 
depressed state of the uranium industry and that any increase in fees 
to uranium recovery licensees may pose a significant financial 
hardship. However, without legislative relief, the NRC is mandated by 
OBRA-90 to collect approximately 100 percent of its budget authority. 
As stated in response to similar comments on this issue in the FY 1993 
fee rule (58 FR 38667; July 20, 1993), the Commission lacks the 
expertise or information needed to determine whether, in a market 
economy, particular licensees can or cannot recapture the costs of 
annual fees from their customers. The Commission is not a financial 
regulatory agency and does not have the resources necessary to 
continuously evaluate purely business factors. The annual fees must 
have, to the maximum extent practicable, a reasonable relationship to 
the cost of providing regulatory services in order to meet the 
requirements of OBRA-90. Therefore, the Commission is not changing its 
previous decisions against basing fees on licensees' economic status or 
market conditions, and has only considered the fee impacts it is 
obligated by law to consider. In the FY 1993 final fee rule, after full 
consideration of the question, the NRC determined not to establish fees 
or base any fee exemptions on the alleged inability of a licensee to 
pass through the costs to its customers (58 FR 38667, 38668; July 20, 
1993).
    The Commission established its policy regarding rebaselining 
frequency in the FY 1999 final fee rule (64 FR 31448; June 10, 1999). 
The Commission determined that future annual fees should be rebaselined 
every three years or earlier, if warranted. This decision was based on 
the experience gained as a result of applying the criteria from 
rebaselining over the previous four years. The Commission's decision on 
the appropriate method for establishing annual fees (e.g., rebaselining 
vs percentage change) is made each year after considering all relevant 
factors. Rebaselining on a periodic basis or when there has been a 
substantial change in the total NRC budget or the magnitude of the 
budget allocated to a class of licensees is necessary to meet the 
statutory criteria that the annual fees be fairly and equitably 
allocated among licensees or classes of licensees, and, to the maximum 
extent practicable, have a reasonable relationship to the cost of 
providing regulatory services.
5. Effects of Decreasing Numbers of Licensees
    Comment. Several commenters broached the issue of annual fee 
increases that result from a decreasing number of licensees available 
to pay the fees. Some commenters questioned why NRC's budget did not 
decrease commensurate with the decrease in licensees. One commenter, 
representing commercial nuclear reactor licensees, stated that a 
decrease in the number of materials licensees was the only reason given 
for the 1.4 percent increase in power reactor licensee's annual fees 
which, in the commenter's view, suggests that the increase is solely 
attributable to the costs of regulating materials licensees. Therefore, 
these costs have no relation to nuclear power reactors. The uranium 
recovery industry expressed apprehension about the decreasing number of 
licensees in the uranium recovery industry, thereby raising concern 
over the last remaining licensee in the class supporting the NRC's 
entire Uranium Recovery Branch singlehandedly.
    Response. The NRC acknowledges the commenters' concern regarding 
the effects a declining licensee base has on the Part 171 fees assessed 
to the remaining licensees. Given the requirements of OBRA-90, the NRC 
has no option but to assess annual fees to NRC licensees to recover the 
budgeted costs not recovered through Part 170 fees and other receipts.
    The NRC's fee-based budget for FY 2000 did, in fact, decrease by 
$2.6 million from FY 1999, as shown in Table II of the proposed rule 
and this final rule. However, the need for generic efforts and other 
activities of the agency may not necessarily decrease at the same rate 
as the decrease in the number of licensees. For example, the NRC's cost 
to establish a risk-informed, performance-based regulatory framework is 
not affected by a decrease in the number of licensees. Similarly, the 
costs to maintain the Emergency Response Center are not affected by the 
number of licensees. The NRC continually evaluates options to reduce 
costs without sacrificing its health and safety mission, including 
costs in those areas where the licensee base is diminishing.
    In the years that annual fees have been based on the percent change 
method (FYs 1996, 1997, 1998, and 2000), there have been decreases in 
both materials licenses and reactor licenses. For example, in FY 1998, 
the equivalent of 2.3 fewer reactor licensees were available to pay the 
annual fees compared to FY 1997. This represented a reduction of 
approximately 2 percent of the total operating reactors. In FY 2000, 
there are approximately 530 fewer materials licensees compared to FY 
1999, a reduction of approximately 10 percent.
    Under the percent change method, which has been endorsed by most of 
those commenting on the methodology since it was introduced in FY 1995, 
the number of licensees is only one factor in the determination of the 
percentage change to the annual fees needed to assure 100 percent fee 
recovery. This does not mean that the percentage change to the previous 
year's annual fees is related to a change in the costs of regulating 
the class of licensees that experienced the decrease in licensees. 
Rather, the percentage change is based on the factors shown in Table II 
(e.g., changes to the total fee recovery amount, the estimated 
collections from Part 170 fees and other receipts, and billing 
adjustments necessary to meet the 100 percent fee recovery 
requirement), and the number of licensees paying annual fees compared 
to FY 1999.
    The NRC supports legislative relief with respect to the NRC 
activities that have no direct relation to the licensees who are 
assessed the costs as part of their annual fee (e.g., Agreement State 
program oversight, international programs, etc.). As noted previously, 
the Senate has passed such legislation. That same legislation would 
provide the Commission with the authority to charge Part 170 fees to 
all Federal agencies.
6. Fee Stability
    Comment. Several commenters expressed concern over the instability 
of fees from year to year. As a result, it becomes increasingly 
difficult for licensees to accurately budget for NRC's annual costs.
    Response. To address licensee concerns about fee stability and 
predictability, the Commission adopted the policy of adjusting the 
annual fees by the percentage change in the total NRC budget, with 
adjustments for numbers of licensees in particular fee classes and 
other necessary adjustments to meet the requirement of recovering 
approximately 100 percent of the budget through fees. This percentage 
change method is used only if there has not been a substantial change 
in the total NRC budget or the magnitude of the budget allocated to a 
specific class of licensees, in which case the annual fees will be 
rebaselined. As of FY 1999, the

[[Page 36952]]

maximum interval for rebaselining is three years. However, the 
Commission has stated that it will rebaseline earlier if warranted.
7. Assessment of Annual Fees to Licensees in Standby or Decommissioning
    Comment. One commenter indicated that it is inappropriate for the 
NRC to charge uranium recovery licensees in ``standby'' mode the same 
annual fees as licensees who are actively operating a facility, 
especially in light of the fact that regulatory review and inspection 
efforts by the NRC are minimal for these dormant sites. Similarly, 
another commenter remarked that the NRC should lessen or discontinue 
its assessment of annual licensing fees on decommissioned facilities 
that are simply awaiting NRC approval of reclamation plans.
    Response. In the FY 1991 fee rule, the Commission made a 
determination to assess annual fees to uranium recovery licensees in 
operation or in standby in order to recover the generic costs and other 
costs not recovered through Part 170 fees attributable to the uranium 
recovery class. The Commission stated that this method was practical, 
equitable, and a fair way to recover NRC costs given the limited number 
of operating mills and is consistent with the approach taken for other 
classes of licensees. The Commission further elaborated on this issue 
in response to a similar comment from the American Mining Congress (now 
the National Mining Association) in 1995 (60 FR 20918; April 28, 1995). 
There the Commission asserted it would continue to assess annual fees 
based on whether a licensee holds a valid license with the NRC that 
authorizes possession and use of radioactive material, regardless of 
whether the facility is actively operating or in a standby status. The 
basic premise for this policy is that the benefit the NRC provides a 
licensee is the authority to use licensed material. The choice of 
whether or not to exercise that authority is a business decision of the 
licensee.
    Because of the mandate that the NRC recover approximately 100 
percent of its budget through fees, to refrain from charging annual 
fees to licensees in a standby mode would increase the annual fees for 
other licensees in the class because the number of licensees assessed 
annual fees would decrease. Such an approach would raise fairness and 
equity concerns. Licensees in standby status receive benefit from NRC's 
generic guidance and rules applicable to their class of licensee. 
Additionally, any reduction in required licensing reviews and 
inspections for licensees in a standby mode would be reflected in 
reduced Part 170 fees assessed to them.
    However, the annual fee is waived for those licensees who 
voluntarily relinquish the authority to operate and have permanently 
ceased operations, including sites with reclamation or decommissioning 
plans pending NRC review. Thus, the commenter's remark about the NRC 
assessing annual fees to uranium recovery sites in decommissioning is 
incorrect.
8. Relationship Between Benefits and Fees
    Comment. Several uranium recovery commenters found a lack of 
relationship between NRC's regulatory program and the benefits derived 
by industry, such as a disparity in Part 171 fees versus Part 170 fees 
and excessive levels of oversight/inspections for operating licensees 
for what amounts to a relatively benign industry from a health and 
safety standpoint.
    Response. In FYs 1998 and 1999, the NRC considered ways to recover 
more of its costs through Part 170 fees. The Commission decided in FY 
1999, for example, to expand the scope of Part 170 fees to include 
incident investigations, certain performance assessments and 
evaluations, reviews of reports and other submittals such as responses 
to Confirmatory Action Letters, and full cost recovery for time 
expended by PMs (except time spent on generic activities such as 
rulemaking, and leave). The NRC believes that the costs for the 
activities not recovered through Part 170 fees are appropriately 
included in the Part 171 annual fees. These activities include generic 
efforts, activities exempted from Part 170 fee recovery based on NRC 
policy or legal constraints, and certain activities that raise fairness 
and equity concerns because they do not benefit the licensees who pay 
the costs. In the FY 1999 final fee rule, the NRC outlined the actions 
it has taken to address the fairness and equity concerns (64 FR 31448-
50; June 10, 1999). The response to comments on the FY 2000 proposed 
fee rule concerning legal issues (A.1. of this Section) provides an 
update to the FY 1999 discussion.
    The NRC takes issue with the commenters' remark about the uranium 
recovery industry being subjected to excessive regulatory oversight by 
the NRC for a relatively low risk operation. The NRC is charged with 
the responsibility of regulating the nation's civilian radioactive 
source material supply in a manner that is safe to public health and 
the environment. Uranium recovery is one of the activities that the NRC 
regulates under its mandate. The commenters' suggestion that uranium 
recovery presents a relatively low health and safety risk does not 
obviate the NRC's responsibility to regulate the industry, nor does it 
address the potential health, safety, and environmental issues 
associated with groundwater clean-up, tailings impoundments, facility 
decommissioning, yellowcake processing and handling, etc. When 
developing its annual budget, the NRC's Uranium Recovery Branch looks 
at the level of regulatory effort needed to fulfill its mission and 
bases its inspections and review efforts accordingly. This budget is 
closely scrutinized by the NRC's Office for Nuclear Material Safety and 
Safeguards, the Commission, the Office of Management and Budget, and 
the U.S. Congress before it is approved to ensure that proper resources 
are allocated to sufficiently protect public health and safety and the 
environment, at the most efficient staffing level.
    Additionally, the NRC has examined ways to reduce or eliminate 
inspections associated with uranium recovery facilities. In 
establishing inspection frequencies, the NRC considers the risk to 
public health and safety, and the environment. Sites under reclamation 
are to be inspected once every three years, unless a specific request 
is received from a licensee for the NRC staff to review elements of 
construction earlier. Generally, sites on standby status are to be 
inspected every two to three years. Facilities that are currently in 
operational status are to be inspected twice a year, with the option 
for a reduction to once a year made by the NRC based on the site's 
previous inspection record. Thus, if an operating uranium recovery 
licensee has a good inspection record and the NRC determines that a 
reduced number of inspections is warranted, it will eliminate one 
biannual inspection. Furthermore, the NRC has instituted performance-
based licensing for uranium recovery licensees to help streamline 
licensing and oversight activities, and when implemented properly by 
the licensee, should result in reduced review efforts by the NRC staff.
    These programmatic efficiencies are intended to reduce the amount 
of resources expended on licensing and inspection activities. However, 
there are other activities that have required increased resources. For 
example, three uranium recovery licensees were involved in Atomic 
Safety Licensing Board administrative hearings over the last several 
years. These contested

[[Page 36953]]

hearings have consumed substantial NRC staff resources. The budgeted 
resources devoted to contested hearings affect the Part 171 fee base 
because, for policy and legal reasons, the Commission does not charge 
Part 170 fees for contested hearings. Commenters have opposed cost 
recovery under Part 170 for contested hearings.
    Comment. Many commenters voiced their displeasure with the 
inequities of OBRA-90 and encouraged the NRC to continue its efforts in 
pursuing legislative action to obtain fee relief for the uranium 
recovery industry.
    Response. The FY 1999 fee rule outlines the actions the NRC has 
taken to address the inequities of the annual fees. As noted 
previously, the NRC has submitted proposed legislation that would 
reduce the NRC's fee recovery amount in order to address fairness and 
equity concerns. The Senate has passed such legislation.

D. Other Issues

1. NRC's Budget
    Comment. One commenter, referring to the NRC's FY 2001-2005 Five 
Year Plan, indicated that NRC's overall budget does not reflect the 
agency's stated objectives to become more effective and efficient. The 
commenter believes that changes in NRC's regulatory approach, the 
industry's good performance, and decreases in licensing actions, 
generic communications, inspection requirements, and time spent on 
allegations, should lead to a reduction in FTE, not an increase as 
projected in the budget plan.
    Response. The NRC's budgets, current or future, are not within the 
scope of this rulemaking. The purpose of this rulemaking is to 
establish the fees necessary to recover approximately 100 percent of 
the agency's FY 2000 budget authority as required by OBRA-90. The NRC's 
budget requests undergo extensive internal examination before they are 
submitted to the Office of Management and Budget (OMB). After OMB 
review, the budget requests are submitted to Congress, where they 
undergo additional scrutiny. This review process assures that the 
budget reflects the resources necessary for the NRC to carry out its 
health and safety mission.
    While there are decreases in resource needs as the commenter noted, 
there are also major increases. These increases are needed for efforts 
such as timely license renewal, license transfers, and risk-informing 
NRC regulations, all of which have been supported by the industry.
2. NRC's Jurisdiction for In-Situ Leach
    Comment. Uranium recovery commenters urged the NRC to relinquish 
its jurisdiction of in-situ leach (ISL) uranium mining wellfield 
regulation as outlined in the National Mining Association's (NMA's) 
1998 White Paper to the Commission.
    Response. The NRC recognizes the commenters' concern regarding 
NRC's role in ISL wellfield regulation as discussed in the FY 1999 fee 
rule. In summary, the NRC began examining its role in the regulation of 
ISL wellfields and the associated groundwater in 1997. The NMA provided 
its White Paper outlining four major concerns, including one related to 
in-situ facility regulation. The matter is now before the Commission.

III. Final Action

    The NRC is amending its licensing, inspection, and annual fees to 
recover approximately 100 percent of its FY 2000 budget authority, 
including the budget authority for its Office of the Inspector General, 
less the appropriations received from the NWF and the General Fund. For 
FY 2000, the NRC's budget authority is $470.0 million, of which $19.15 
million has been appropriated from the NWF. In addition, $3.85 million 
has been appropriated from the General Fund for activities related to 
regulatory reviews and other assistance provided to the DOE and other 
Federal agencies. The NRC's FY 2000 Appropriations Act states that this 
$3.85 million appropriation shall be excluded from license fee 
revenues. Therefore, the NRC is required to collect approximately 
$447.0 million in FY 2000 through 10 CFR Part 170 licensing and 
inspection fees and 10 CFR Part 171 annual fees. The total amount to be 
recovered in fees for FY 2000 is $2.6 million less than the total 
amount estimated for recovery in the NRC's FY 1999 fee rule.
    The NRC estimates that approximately $106.0 million will be 
recovered in FY 2000 from Part 170 fees and other offsetting receipts. 
The remaining $341.0 million would be recovered through Part 171 annual 
fees.
    The NRC also estimates a net adjustment for FY 2000 of 
approximately $5.7 million for the small entity subsidy, for FY 2000 
invoices that would not be paid in FY 2000, and for payments received 
in FY 2000 for FY 1999 invoices. These adjustments are approximately 
$2.5 million more than in FY 1999. In addition, there are approximately 
530 fewer licenses subject to annual fees in FY 2000 than in FY 1999, 
due primarily to Ohio becoming an Agreement State in August, 1999.
    As a result of these changes, the FY 2000 annual fees increased 
slightly, by approximately 1.4 percent, compared to the FY 1999 actual 
(prior to rounding) annual fees. As a result of rounding, the FY 2000 
annual fees for several fee categories are the same as the final 
(rounded) FY 1999 annual fees. The change to the annual fees is 
described in more detail in Section B. The following examples 
illustrate the changes in annual fees: FY 1999 FY 2000

------------------------------------------------------------------------
                                              FY 1999         FY 2000
           Class of licensees               annual fee      annual fee
------------------------------------------------------------------------
Power Reactors (Including Spent Fuel          $2,776,000      $2,815,000
 Storage/Reactor Decommissioning fee)...
Spent Fuel Storage/Reactor                       206,000         209,000
 Decommissioning........................
Nonpower Reactors.......................          85,900          87,100
High Enriched Uranium Fuel Facility.....      3,281,0000       3,327,000
Low Enriched Uranium Fuel Facility......       1,100,000       1,116,000
UF<INF>6</INF> Conversion Facility.................         472,000         478,000
Uranium Mills...........................         131,000         132,000
Typical Materials Licenses:
    Radiographers.......................          14,700          14,900
    Well Loggers........................           9,900          10,100
    Gauge Users.........................           2,600           2,600
    Broad Scope Medical.................          27,800          28,100
------------------------------------------------------------------------


[[Page 36954]]

    The final FY 2000 fee rule is a ``major'' final action as defined 
by the Small Business Regulatory Enforcement Fairness Act of 1996. 
Therefore, the NRC's fees for FY 2000 will become effective 60 days 
after publication of the final rule in the Federal Register. The NRC 
will send an invoice for the amount of the annual fee to reactors and 
major fuel cycle facilities upon publication of the FY 2000 final rule. 
For these licensees, payment will be due on the effective date of the 
FY 2000 rule. Those materials licensees whose license anniversary date 
during FY 2000 falls before the effective date of the final FY 2000 
rule will be billed during the anniversary month of the license and 
continue to pay annual fees at the FY 1999 rate in FY 2000. Those 
materials licensees whose license anniversary date falls on or after 
the effective date of the final FY 2000 rule will be billed at the FY 
2000 revised rates during the anniversary month of the license and 
payment will be due on the date of the invoice. However, interest will 
be waived if payment is received within 30 days from the invoice date.
    As announced in FY 1998 rule, as a cost-saving measure, the NRC 
will no longer mail the final rule to all licensees. However, the NRC 
will send the final rule to any licensee or other person upon 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 <a href="/cdn-cgi/l/email-protection#b7d1d2d2c4f7d9c5d499d0d8c1"><span class="__cf_email__" data-cfemail="4f292a2a3c0f213d2c61282039">[email protected]</span></a>. In 
addition to publication in the Federal Register, the final rule will be 
available on the internet at http://ruleforum.llnl.gov.
    The NRC is also making other changes to 10 CFR Parts 170 and 171 as 
discussed in Sections A and B below:

A. Amendments to 10 CFR Part 170: Fees for Facilities, Materials, 
Import and Export Licenses, and Other Regulatory Services Under the 
Atomic Energy Act of 1954, as Amended

    The NRC is revising the hourly rates used to calculate fees and is 
adjusting the 10 CFR Part 170 fees based on the revised hourly rates. 
An administrative amendment has also been made to Sec. 170.12(c) to 
clarify that the site to which a resident inspector is assigned will 
not be assessed Part 170 fees for time spent by the resident inspector 
in support of activities at another site. The amendments to 10 CFR Part 
170 are as follows:
1. Hourly Rates
    The NRC is revising the two professional hourly rates for NRC staff 
time established in Sec. 170.20. These rates are based on the number of 
FY 2000 direct program full time equivalents (FTEs) and the FY 2000 NRC 
budget, excluding direct program support costs and NRC's appropriations 
from the NWF and the General Fund. These rates are used to determine 
the Part 170 fees. The hourly rate for the reactor program is $144 per 
hour ($255,848 per direct FTE). This rate is applicable to all 
activities for which fees are based on full cost under Sec. 170.21 of 
the fee regulations. The hourly rate for the nuclear materials and 
nuclear waste program is $143 per hour ($253,478 per direct FTE). This 
rate is applicable to all activities for which fees are based on full 
cost under Sec. 170.31 of the fee regulations. In the FY 1999 final fee 
rule, these rates were $141 and $140, respectively. The approximately 2 
percent increase is primarily due to the Government-wide pay increase 
in FY 2000.
    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 nuclear material and waste program.
    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 direct program costs (i.e., Salaries and Benefits, 
Travel) represent ``in-house'' costs and are allocated 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 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.

    Table I.--FY 2000 Budget Authority to be Included in Hourly Rates
                          [Dollars in millions]
------------------------------------------------------------------------
                                              Reactor        Materials
                                              program         program
------------------------------------------------------------------------
Direct Program Salaries & Benefits......         $103.3M          $29.0M
Overhead Salaries & Benefits, Program            $ 53.2M          $15.3M
 Travel and Other Support...............
Allocated Agency Management and Support.          $ 98.8           $27.9
                                         -------------------------------
    Subtotal............................          $255.3           $72.2
                                         ===============================
Less offsetting receipts................              -1  ..............
                                         -------------------------------
    Total Budget Included in Hourly Rate          $255.2           $72.2
Program Direct FTEs.....................           997.5           284.9
Rate per Direct FTE.....................        $255,848        $253,478
Professional Hourly Rate (Rate per                  $144            $143
 direct FTE divided by 1,776 hours).....
------------------------------------------------------------------------

    As shown in Table I, dividing the $255.2 million (rounded) budgeted 
amount included in the hourly rate for the reactor program by the 
reactor program direct FTEs (997.5) results in a rate for the reactor 
program of $255,848 per FTE for FY 2000. The Direct FTE Hourly Rate for 
the reactor program is $144 per hour (rounded to the nearest whole 
dollar). This rate is calculated by dividing the cost per direct FTE 
($255,848) 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.'' Dividing the $72.2 million (rounded) budgeted 
amount included in the hourly rate for the nuclear materials and 
nuclear waste program by the program direct FTEs (284.9) results in a 
rate of $253,478 per FTE for FY 2000. The Direct FTE Hourly Rate for 
the materials program is $143 per hour (rounded to the nearest whole 
dollar).

[[Page 36955]]

This rate is calculated by dividing the cost per direct FTE ($253,478) 
by the number of productive hours in one year (1,776 hours).
2. Fee Adjustments
    The NRC is adjusting the current Part 170 fees in Secs. 170.21 and 
170.31 to reflect the changes in the revised hourly rates. The full 
cost fees assessed under Secs. 170.21 and 170.31 are based on the 
professional hourly rates and any direct program support (contractual 
services) costs expended by the NRC. Any professional hours expended on 
or after the effective date of the final rule would be assessed at the 
FY 2000 hourly rates.
    The fees in Secs. 170.21 and 170.31 that are based on the average 
time to review an application (``flat'' fees) have been adjusted to 
reflect the increase in the professional hourly rates from FY 1999. The 
amounts of the materials licensing ``flat'' fees were rounded as 
follows. Fees under $1,000 are rounded to the nearest $10. Fees that 
are greater than $1,000 but less than $100,000 are rounded to the 
nearest $100. Fees that are greater than $100,000 are rounded to the 
nearest $1,000.
    The licensing ``flat'' fees are applicable to fee categories K.1 
through K.5 of Sec. 170.21, and fee categories 1.C, 1.D, 2.B, 2.C, 3.A 
through 3.P, 4.B through 9.D, 10.B, 15.A through 15.E, and 16 of 
Sec. 170.31. Applications filed on or after the effective date of the 
final rule will be subject to the revised fees in this final rule.
3. Administrative Amendment
    The NRC is amending Sec. 170.12 (c)(1) to clarify that the fees 
assessed for a resident inspector's time exclude time spent by the 
resident inspector in support of activities at another site. This 
provision was inadvertently omitted from the revision of 10 CFR 170 in 
the FY 1999 fee rule.
4. Other
    The NRC solicited public comment in the FY 1999 proposed fee 
rulemaking (64 FR 15878; April 1, 1999) on whether to include the 
development of orders, evaluation of responses to orders, development 
of Notices of Violations (NOVs) accompanying escalated enforcement 
actions, and evaluation of responses to NOVs in the fees collected for 
identifiable services under Part 170 in the FY 2000 proposed fee rule. 
Those commenting on this issue presented arguments both for and against 
assessing Part 170 fees for these activities. The NRC stated in the 
final fee rule (64 FR 31452; June 10, 1999), that it would further 
evaluate this issue before promulgation of the FY 2000 fee rule.
    Three of the four commenters who addressed this issue in FY 1999 
did not support recovering the costs for these activities under Part 
170. These commenters were concerned that assessing these costs to the 
specific licensees under Part 170 could be viewed as penalizing the 
licensee when the licensee identifies and corrects violations. One 
commenter supported Part 170 fee assessment for escalated enforcement 
actions, indicating that it is inappropriate for one licensee to 
subsidize oversight for another licensee. This commenter also stated 
that the perception that these actions serve as an industry-wide 
deterrent is not borne out.
    In addition to concerns raised by the commenters, there are other 
problems with assessing Part 170 fees for these activities. These 
problems include the handling of escalated enforcement costs if the 
enforcement action is reduced to a non-escalated enforcement action or 
is dropped altogether. Based on the public comments received in FY 1999 
and legal and policy concerns (e.g., whether adoption of such a policy 
would deter licensees from requesting hearings on proposed enforcement 
actions), the NRC will continue to recover costs for orders and 
escalated enforcement actions through Part 171 annual fees.
    In summary, the NRC is amending 10 CFR Part 170 to:
    1. Revise the two hourly rates;
    2. Revise the licensing fees to be assessed to reflect the revised 
hourly rates; and
    3. Make an administrative amendment to Sec. 170.12(c) to clarify 
that the site to which a resident inspector is assigned will not be 
assessed Part 170 fees for time spent by the resident inspector in 
support of activities at another site.

B. Amendments to 10 CFR Part 171: Annual Fees for Reactor Licenses, and 
Fuel Cycle Licenses and Materials Licenses, Including Holders of 
Certificates of Compliance, Registrations, and Quality Assurance 
Program Approvals, and Government Agencies Licensed by the NRC

    The NRC is revising the annual fees for FY 2000, increasing the 
maximum annual fees assessed to those licensees who qualify as small 
entities, and making several administrative amendments. The amendments 
are as follows:
1. Annual Fees
    The NRC is amending Secs. 171.15 and 171.16 to establish the annual 
fees for FY 2000 to recover approximately 100 percent of the FY 2000 
budget authority, less fees collected under 10 CFR Part 170 and funds 
appropriated from the NWF and the General Fund. In the FY 1995 final 
rule, the NRC stated that it would stabilize annual fees as follows. 
Beginning in FY 1996, the NRC would adjust the annual fees only by the 
percentage change (plus or minus) in NRC's total budget authority, 
unless there was a substantial change in the total NRC budget authority 
or the magnitude of the budget allocated to a specific class of 
licensees. If either case should occur, the annual fee base would be 
recalculated (60 FR 32225; June 20, 1995). The NRC also indicated that 
the percentage change would be adjusted based on changes in 10 CFR Part 
170 fees and other adjustments as well as on the number of licensees 
paying the fees. In addition, beginning in FY 1997, the NRC made an 
adjustment to recognize that all fees billed in a fiscal year are not 
collected in that year.
    In the FY 1999 proposed fee rule (63 FR 15884; April 1, 1999), 
public comment was solicited on whether the NRC should, in future 
years, continue to use the percent change method and rebaseline annual 
fees every several years, as established in FY 1995, or return to a 
policy of rebaselining annual fees every year. The majority of those 
commenting on the frequency for rebaselining annual fees supported 
rebaselining every several years, as warranted. Based on the comments 
received, licensees have continuing concerns about fee stability. 
Therefore, in the final FY 1999 fee rule (64 FR 31448; June 10, 1999), 
the NRC stated that it is continuing the policy of adjusting the annual 
fees only by the percent change in the NRC's total budget, with 
additional adjustments for the numbers of licensees paying fees, 
changes in Part 170 fees, and other adjustments that may be required, 
unless there is a substantial change in the total NRC budget or the 
magnitude of the budget allocated to a specific class of licensees, in 
which case the annual fee base would be reestablished. However, based 
on experience gained from applying the criteria from FY 1996 to FY 
1999, the Commission determined that, in the future, annual fees should 
be rebaselined at least every three years, or earlier, if warranted.
    After evaluating NRC's budget data for FY 2000 and concluding that 
there has not been a substantial change in the NRC budget or in the 
magnitude of a specific budget allocation to a class of licensees, the 
NRC is continuing to stabilize annual fees by adjusting the FY 1999 
annual fees by the percent change in the NRC's total budget, with 
adjustments for the number of licensees paying fees, changes in 
estimated Part

[[Page 36956]]

170 collections and other offsetting receipts, and other changes 
required to assure that the amounts billed result in the required 
collections.
    The $447.0 million to be recovered through Part 170 and Part 171 
fees for FY 2000 is $2.6 million less than the total amount estimated 
for recovery in the NRC's FY 1999 fee rule. The NRC estimates that 
approximately $106.0 million will be recovered in FY 2000 from Part 170 
fees and other offsetting receipts, compared to $107.7 million in FY 
1999, a $1.7 million decrease. As the NRC explained in the FY 1999 
proposed and final fee rules (64 FR 15876; April 1, 1999, and 64 FR 
31458; June 10, 1999), the amount for FY 1999 included a $4.1 million 
carryover from additional FY 1998 collections which reduced the total 
fee recovery amount for FY 1999. This circumstance does not exist for 
FY 2000. The $1.7 million decrease in estimated collections for FY 2000 
is the difference between the $4.1 million reduction available in FY 
1999 from FY 1998 collections and an estimated $2.4 million increase in 
Part 170 collections for FY 2000 compared to FY 1999. The increase in 
estimated Part 170 collections, from $103.5 in FY 1999 to $105.9 for FY 
2000, is largely attributable to changes in Commission policy included 
in the FY 1999 final fee rule, such as billing full cost under Part 170 
for project managers, performance assessments, incident investigations, 
and reviews of reports and other documents that do not require formal 
or legal approval.
    The remaining $341.0 million ($447.0 million total FY 2000 fee 
recovery amount less $106.0 million for estimated Part 170 collections 
and other receipts) is to be recovered through the Part 171 annual 
fees. The $341.0 million annual fee recovery amount for FY 2000 is 
approximately $1.0 million less than in FY 1999.
    In addition to the slight reduction in the total amount to be 
recovered through annual fees, the NRC estimates a net annual fee 
billing adjustment of approximately $5.7 million for FY 2000 resulting 
from: (1) bills that will not be paid in FY 2000; (2) the small entity 
subsidy; and (3) payments received in FY 2000 for FY 1999 invoices. The 
billing adjustment, which is necessary to assure that the ``billed'' 
amount results in the required collections, is approximately $2.5 
million more than in FY 1999.
    In addition to these changes, there are approximately 530 fewer 
licenses subject to annual fees in FY 2000 than in FY 1999, due 
primarily to Ohio becoming an Agreement State in August 1999. As a 
result of these changes, the FY 2000 annual fees increased slightly, by 
approximately 1.4 percent, compared to the FY 1999 actual (prior to 
rounding) annual fees. As a result of rounding, the FY 2000 annual fees 
for several fee categories are the same as the final (rounded) FY 1999 
annual fees. The effects of these changes on the annual fees are shown 
in Table II.

  Table II.--Calculation of the Percentage Change to the FY 1999 Annual
                                  Fees
                          [Dollars in millions]
------------------------------------------------------------------------
                                              FY 1999         FY 2000
------------------------------------------------------------------------
Total Budget............................         $469.80         $470.00
    Less NWF............................          -17.00          -19.15
    Less General Fund (Regulatory                  -3.20           -3.85
     reviews, and other assistance to
     other Federal agencies)............
                                         -------------------------------
Total Fee Base..........................         $449.60         $447.00
                                         ===============================
    Less Part 170 Fees..................         -103.50         -105.90
    Less other receipts.................           -4.20           -0.10
                                         -------------------------------
Part 171  Fee Collections Required......         $341.90         $341.00
                                         ===============================
Part 171  Billing Adjustment: \1\
    Small Entity Allowance..............            5.30            5.60
    Estimated Unpaid Current FY Part 171            3.40            3.30
     Invoices...........................
    Estimated Payments from Prior Year             -5.50           -3.20
     Invoices...........................
                                         -------------------------------
        Subtotal........................            3.20            5.70
                                         ===============================
        Total Part 171 Billing..........         $345.10        $346.70
------------------------------------------------------------------------
\1\These adjustments are necessary to ensure that the ``billed'' amount
  results in the required collections. Positive amounts indicate amounts
  billed that will not be collected in FY 2000.

2. Small Entity Annual Fees
    The current maximum small entity annual fee and the lower tier 
small entity annual fee are increased by 25 percent. The maximum small 
entity annual fee increased from $1,800 to $2,300, and the lower tier 
small entity fee increased from $400 to $500. The current maximum small 
entity annual fee was established in FY 1991; the current lower tier 
small entity annual fee was established in FY 1992. The 25 percent 
increase is consistent with the increase in NRC fees for other NRC 
materials licensees since FY 1991. The increase is less than the 
increase in the average fees paid by small entity licensees in 
Agreement States during this time.
    Between 1991 and 1999, changes in both the external and internal 
environment have affected NRC's costs and those of its licensees. 
Increases in the NRC materials license fees, Agreement States' 
materials license fees, and the Consumer Price Index all indicate that 
the NRC small entity fee established in 1991 should be revised. In 
addition, the structure of the fees that NRC charges to its materials 
licensees changed during the period between 1991 and 1999. In the past, 
costs for materials license inspections, renewals, and amendments were 
recovered through Part 170 fees for services. The costs of these 
activities are now included in the Part 171 annual fees assessed to 
materials licensees.
    While the annual fees increased for most materials licensees as a 
result of these changes, the NRC's annual fees assessed to small 
entities have not been adjusted to include the additional costs. As a 
result, small entities are currently paying a smaller percentage of the 
total

[[Page 36957]]

NRC regulatory costs related to them than they did in FY 1991 and FY 
1992 when the small entity fees were established.
    Based on the changes that have occurred since FY 1991, the NRC has 
reanalyzed its maximum small entity annual fee. As part of the 
reanalysis, the NRC considered the 1999 fees assessed by Agreement 
States, the NRC's FY 1999 fee structure, and the increase in the 
Consumer Price Index between FY 1991 and FY 1999. The reanalysis and 
alternatives considered by the NRC for revising the small entity annual 
fees are described in the Regulatory Flexibility Analysis, which is 
Appendix A to this final rule.
    In the future, the NRC plans to re-examine the small entity fees 
each year that annual fees are rebaselined.
3. Administrative Amendments
    a. The NRC is revising Sec. 171.5, Definitions, to include 
Certificates of Compliance (Certificates) issued under Part 76. The NRC 
issued two Certificates of Compliance under Part 76 to the United 
States Enrichment Corporation (USEC) for the operation of the gaseous 
diffusion uranium enrichment plants located at Paducah, Kentucky, and 
Piketon, Ohio. The definition of Materials License in Sec. 171.5 has 
been amended to include Part 76 Certificates. This change is an 
administrative change to codify agency practice in the definitions for 
10 CFR Part 171. Section 171.16(a)(1) already provides that annual fees 
covered by the section apply to person(s) authorized to conduct 
activities under 10 CFR Part 76 for uranium enrichment. USEC has been 
subject to annual fees since FY 1997.
    b. Section 171.15 is revised as follows:
    (1) Paragraphs (b) and (c) of Sec. 171.15 are revised in their 
entirety to establish the FY 2000 annual fees for operating power 
reactors, power reactors in decommissioning or possession only status, 
and Part 72 licensees who do not hold Part 50 licenses. The fees have 
been established by increasing the FY 1999 actual (prior to rounding) 
annual fees by approximately 1.4 percent. In the FY 1999 fee rule, the 
NRC stated it would continue to stabilize annual fees by adjusting the 
annual fees 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 other adjustments that may be required, unless there is a 
substantial change in the total NRC budget or the magnitude of the 
budget allocated to a specific class of licensees, in which case the 
annual fee base would be reestablished. The activities comprising the 
FY 1999 base annual fees and the additional charge (surcharge) are 
listed in Sec. 171.15(b)(2), (c)(2) and (d)(1) for convenience 
purposes.
    The FY 2000 annual fee for each operating reactor is $2,815,000, 
which includes the annual fee of $209,000 for spent fuel storage/
reactor decommissioning. Each power reactor holding a Part 50 license 
that is in 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 subject to the spent fuel storage/
reactor decommissioning annual fee of $209,000 in FY 2000.
    (2) Paragraph (e) of Sec. 171.15 is revised to establish the FY 
2000 annual fee for non-power (test and research) reactors. The fee has 
been established by increasing the FY 1999 actual (prior to rounding) 
annual fee by approximately 1.4 percent. The FY 2000 annual fee for 
each non-power reactor is $87,100. The NRC will continue to grant 
exemptions from the annual fee to Federally-owned and State-owned 
research and test reactors that meet the exemption criteria specified 
in Sec. 171.11(a)(2).
    c. Section 171.16 is amended as follows:
    (1) Section 171.16(c) covers the fees assessed for those licensees 
that can qualify as small entities under NRC size standards. A 
materials licensee may pay a reduced annual fee if the licensee 
qualifies as a small entity under the NRC's size standards and 
certifies that it is a small entity using NRC Form 526. This section is 
revised to reflect the 25 percent increase in the small entity fees. 
The NRC is maintaining a two-tier fee structure for licensees that 
qualify as small entities under the NRC's size standards. In general, 
licensees who qualify as small entities will pay a maximum annual fee 
of $2,300. A second or lower-tier small entity fee of $500 is in place 
for those licensees who are considered to be very small entities for 
the purposes of this regulation.
    (2) Section 171.16(d) is revised to establish the FY 2000 annual 
fees for materials licensees, including Government agencies, licensed 
by the NRC. The FY 2000 annual fees were determined by increasing the 
FY 1999 actual (prior to rounding) annual fees by approximately 1.4 
percent. After rounding, the FY 2000 annual fees for several categories 
of materials licenses are the same as in FY 1999. The amount or range 
of the FY 2000 annual fees for materials licenses is summarized as 
follows:

                  Materials Licenses, Annual Fee Ranges
------------------------------------------------------------------------
            Category of license                      Annual fees
------------------------------------------------------------------------
Part 70--High enriched fuel facility......  $3,327,000
Part 70--Low enriched fuel facility.......  1,116,000
Part 40--UF<INF>6</INF> conversion facility..........  478,000
Part 40--Uranium recovery facilities......  $30,800 to $132,000
Part 30--Byproduct Material Licenses......  $620 to $28,100 \2\
Part 71--Transportation of Radioactive      $2,300 to $67,600
 Material.
------------------------------------------------------------------------
\2\ Excludes the annual fee for a few military ``master'' materials
  licenses of broad-scope issued to Government agencies, which is
  $363,000

    (3) Footnote 1 of Sec. 171.16(d) is amended to provide a waiver of 
the annual fees for materials licensees, and holders of certificates, 
registrations, and approvals, who either filed for termination of their 
licenses or approvals or filed for possession only/storage only 
licenses before October 1, 1999, and permanently ceased licensed 
activities entirely by September 30, 1999. All other licensees and 
approval holders who held a license or approval on October 1, 1999, are 
subject to the FY 2000 annual fees.
    Holders of new licenses issued during FY 2000 are subject to a 
prorated annual fee in accordance with the current proration provision 
of Sec. 171.17. For example, those new materials licenses issued during 
the period October 1, 1999, through March 31, 2000, are assessed one-
half the annual fee in effect on the anniversary date of the license. 
New materials licenses issued on or after April 1, 2000, are not 
subject to an annual fee for FY 2000. Thereafter, the full annual fee 
will be due and payable each subsequent fiscal year on the anniversary 
date of the license. Materials licensees whose annual fees are less 
than $100,000 are subject to the annual fee in effect on the 
anniversary date of the license. The anniversary date of the materials 
license for annual fee purposes is the first day of the month in which 
the original license was issued.
    d. Section 171.19 Payment, is amended as follows:
    (1) Section 171.19(b) is revised to update the fiscal year 
references, and to give credit for partial payments made by certain 
licensees in FY 2000 toward their FY 2000 annual fees. The NRC 
anticipates that the first, second, and third quarterly payments for FY 
2000 will have been made by operating power reactor licensees and some 
large materials licensees before the final rule

[[Page 36958]]

becomes effective. Therefore, the NRC will credit payments received for 
those quarterly annual fee assessments toward the total annual fee to 
be assessed. The NRC will adjust the fourth quarterly invoice to 
recover the full amount of the revised annual fee or to make refunds, 
as necessary. Payment of the annual fee is due on the date of the 
invoice and interest accrues from the invoice date. However, interest 
will be waived if payment is received within 30 days from the invoice 
date.
    (2) The remainder of this section, although unchanged, is presented 
for the convenience of the user. As in FY 1999, the NRC will continue 
to bill annual fees for most materials licenses on the anniversary date 
of the license (licensees whose annual fees are $100,000 or more would 
continue to be assessed quarterly). The annual fee assessed will be the 
fee in effect on the license anniversary date, unless the annual fee 
for the prior year was less than $100,000 and the revised annual fee 
for the current fiscal year is $100,000 or more. In this case, the 
revised amount will be billed to the licensees upon publication of the 
final rule in the Federal Register, adjusted for any annual fee 
payments already made for that fiscal year based on the anniversary 
month billing process. For FY 2000, the anniversary date billing 
process applies to those materials licenses in the following fee 
categories: 1C, 1D, 2A(2) Other, 2A(3), 2A(4), 2B, 2C, 3A through 3P, 
4A through 9D, 10A, and 10B. For annual fee purposes, the anniversary 
date of the materials license is considered to be the first day of the 
month in which the original materials license was issued. For example, 
if the original materials license was issued on June 17 then, for 
annual fee purposes, the anniversary date of the materials license is 
June 1 and the licensee will continue to be billed in June of each year 
for the annual fee in effect on June 1. Materials licensees with 
anniversary dates in FY 2000 before the effective date of the FY 2000 
final rule will be billed during the anniversary month of the license 
and continue to pay annual fees at the FY 1999 rate in FY 2000. Those 
materials licensees with license anniversary dates falling on or after 
the effective date of the FY 2000 final rule will be billed at the FY 
2000 revised rates during the anniversary month of their license.
    The NRC reemphasizes that the annual fee will be assessed based on 
whether a licensee holds a valid NRC license or certificate that 
authorizes possession and use of radioactive material.
    In summary, the NRC is revising 10 CFR Part 171 as follows:
    1. The percent change method has been used to determine the annual 
fees for FY 2000. The FY 2000 annual fee for each license fee category 
have been established by increasing the FY 1999 actual annual fee by 
approximately 1.4 percent;
    2. The maximum small entity annual fee for each fee category is 
increased from $1,800 to $2,300, and the lower tier small entity fee is 
increased from $400 to $500; and
    3. Certificates of Compliance issued under Part 76 have been added 
to the definition of Materials License in Sec. 171.5.

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 otherwise 
impractical. In this final rule, the NRC is amending the licensing, 
inspection, and annual fees charged to its licensees and applicants as 
necessary to recover approximately 100 percent of its budget authority 
in FY 2000 as is required by the Omnibus Budget Reconciliation Act of 
1990, as amended. This action does not constitute the establishment of 
a standard that contains generally applicable requirements.

V. Environmental Impact: Categorical Exclusion

    The NRC has determined that this final rule is the type of action 
described in categorical exclusion 10 CFR 51.22(c)(1). Therefore, 
neither an environmental impact statement nor an environmental impact 
assessment has been prepared for the final regulation. By its very 
nature, this regulatory action does not affect the environment, and 
therefore, no environmental justice issues are raised.

VI. Paperwork Reduction Act Statement

    This final rule contains no information collection requirements 
and, therefore, is not subject to the requirements of the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

VII. Regulatory Analysis

    With respect to 10 CFR Part 170, this final rule was developed 
pursuant to Title V of the Independent Offices Appropriation Act of 
1952 (IOAA) (31 U.S.C. 9701) and the Commission's fee guidelines. When 
developing these guidelines the Commission took into account guidance 
provided by the U.S. Supreme Court on March 4, 1974, in National Cable 
Television Association, Inc. v. United States, 415 U.S. 36 (1974) and 
Federal Power Commission v. New England Power Company, 415 U.S. 345 
(1974). In these decisions, the Court held that the IOAA authorizes an 
agency to charge fees for special benefits rendered to identifiable 
persons measured by the ``value to the recipient'' of the agency 
service. The meaning of the IOAA was further clarified on December 16, 
1976, by four decisions of the U.S. Court of Appeals for the District 
of Columbia: National Cable Television Association v. Federal 
Communications Commission, 554 F.2d 1094 (D.C. Cir. 1976); National 
Association of Broadcasters v. Federal Communications Commission, 554 
F.2d 1118 (D.C. Cir. 1976); Electronic Industries Association v. 
Federal Communications Commission, 554 F.2d 1109 (D.C. Cir. 1976) and 
Capital Cities Communication, Inc. v. Federal Communications 
Commission, 554 F.2d 1135 (D.C. Cir. 1976). The Commission's fee 
guidelines were developed based on these legal decisions.
    The Commission's fee guidelines were upheld on August 24, 1979, by 
the U.S. Court of Appeals for the Fifth Circuit in Mississippi Power 
and Light Co. v. U.S. Nuclear Regulatory Commission, 601 F.2d 223 (5th 
Cir. 1979), cert. denied, 444 U.S. 1102 (1980). This court held that--
    (1) The NRC had the authority to recover the full cost of providing 
services to identifiable beneficiaries;
    (2) The NRC could properly assess a fee for the costs of providing 
routine inspections necessary to ensure a licensee's compliance with 
the Atomic Energy Act and with applicable regulations;
    (3) The NRC could charge for costs incurred in conducting 
environmental reviews required by NEPA;
    (4) The NRC properly included the costs of uncontested hearings and 
of administrative and technical support services in the fee schedule;
    (5) The NRC could assess a fee for renewing a license to operate a 
low-level radioactive waste burial site; and
    (6) The NRC's fees were not arbitrary or capricious.
    With respect to 10 CFR Part 171, on November 5, 1990, the Congress 
passed Pub. L. 101-508, the Omnibus Budget Reconciliation Act of 1990 
(OBRA-90), which required that, for FYs 1991 through 1995, 
approximately 100 percent of the NRC budget authority be recovered 
through the assessment of

[[Page 36959]]

fees. OBRA-90 was amended in 1999 to extend the 100 percent fee 
recovery requirement for the NRC through FY 2000. To comply with this 
statutory requirement, and in accordance with Sec. 171.13, the NRC is 
publishing the final amount of the FY 2000 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, provide that--
    (1) The annual fees be based on the Commission's FY 2000 budget of 
$470.0 million less the amounts collected from Part 170 fees and the 
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.
    In addition, the NRC's FY 2000 appropriations language provides 
that $3.85 million appropriated from the General Fund for activities 
related to regulatory reviews and other assistance provided to the 
Department of Energy and other Federal agencies be excluded from fee 
recovery.
    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 to recover approximately 100 percent of its budget authority 
through the assessment of user fees. OBRA-90 further requires that the 
NRC establish a schedule of charges that fairly and equitably allocates 
the aggregate amount of these charges among licensees.
    This final rule establishes the schedules of fees that are 
necessary to implement the Congressional mandate for FY 2000. The final 
rule will result in increases in the annual fees charged to licensees 
and holders of certificates, registrations, and approvals, including 
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 final rule.
    The Small Business Regulatory Enforcement Fairness Act of 1996, 
Pub. L. 104-121, (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 2000.

IX. Backfit Analysis

    The NRC has determined that the backfit rule, 10 CFR 50.109, does 
not apply to this final rule and that a backfit analysis is not 
required for this final rule. The backfit analysis is not required 
because these final amendments do not require the modification of or 
additions to systems, structures, components, or the design of a 
facility or the design approval or manufacturing license for a facility 
or the procedures or organization required to design, construct or 
operate a facility.

X. Small Business Regulatory Enforcement Fairness Act

    In accordance with the Small Business Regulatory Enforcement 
Fairness Act of 1996, Pub. L. 104-121, the NRC has determined that this 
action is a major rule and has verified this determination with the 
Office of Information and Regulatory Affairs of the Office of 
Management and Budget.

List of Subjects

10 CFR Part 170

    Byproduct material, Import and export licenses, Intergovernmental 
relations, Non-payment penalties, Nuclear materials, Nuclear power 
plants and reactors, Source material, Special nuclear material.

10 CFR Part 171

    Annual charges, Byproduct material, Holders of certificates, 
registrations, approvals, Intergovernmental relations, Non-payment 
penalties, Nuclear materials, Nuclear power plants and reactors, Source 
material, Special nuclear material.

    For the reasons set out in the preamble and under the authority of 
the Atomic Energy Act of 1954, as amended, and 5 U.S.C. 552 and 553, 
the NRC is adopting the following amendments to 10 CFR Parts 170 and 
171.

PART 170--FEES FOR FACILITIES, MATERIALS, IMPORT AND EXPORT 
LICENSES, AND OTHER REGULATORY SERVICES UNDER THE ATOMIC ENERGY ACT 
OF 1954, AS AMENDED

    1. The authority citation for Part 170 continues to read as 
follows:

    Authority: 31 U.S.C. 9701, 96 Stat. 1051; sec. 301, Pub. L. 92-
314, 86 Stat. 222 (42 U.S.C. 2201w); sec. 201, Pub. L. 93-4381, 88 
Stat. 1242, as amended (42 U.S.C. 5841); sec. 205, Pub. L. 101-576, 
104 Stat. 2842, (31 U.S.C. 901).


    2. In Sec. 170.12, paragraph (c)(1) is revised to read as follows:


Sec. 170.12  Payment of fees.

* * * * *
    (c) Inspection fees. (1) Inspection fees will be assessed to 
recover full cost for each resident inspector (including the senior 
resident inspector), assigned to a specific plant or facility. The fees 
assessed will be based on the number of hours that each inspector 
assigned to the plant or facility is in an official duty status (i.e., 
all time in a non-leave status), excluding time spent by a resident 
inspector in support of activities at another site. The hours will be 
billed at the appropriate hourly rate established in 10 CFR 170.20. 
Resident inspectors' time related to a specific inspection will be 
included in the fee assessed for the specific inspection in accordance 
with paragraph (c)(2) of this section.

* * * * *

    3. 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, 
10 CFR Part 55 requalification and replacement examinations and tests, 
other required reviews, approvals, and inspections under Secs. 170.21 
and 170.31 will be calculated using the following applicable 
professional staff-hour rates:

Reactor Program (Sec. 170.21 Activities)--$144 per hour
Nuclear Materials and Nuclear Waste Program (Sec. 170.31 Activities)--
$143 per hour


    4. In Sec. 170.21, the introductory text, Category K, and footnotes 
1 and 2 to the table are revised to read as follows:

[[Page 36960]]

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.

    Applicants for construction permits, manufacturing licenses, 
operating licenses, import and export licenses, approvals of facility 
standard reference designs, requalification and replacement 
examinations for reactor operators, and special projects and holders of 
construction permits, licenses, and other approvals shall pay fees for 
the following categories of services.

                        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).
            Application--new license....................          $9,300
            Amendment...................................           9,300
        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).
            Application--new license....................           5,700
            Amendment...................................           5,700
        3. Application for export of components
         requiring foreign government assurances only.
            Application--new license....................           1,700
            Amendment...................................           1,700
        4. Application for export of facility components
         and equipment not requiring Commissioner
         review, Executive Branch review, or foreign
         government assurances.
            Application--new license....................           1,100
            Amendment...................................           1,100
        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...................................            210
------------------------------------------------------------------------
\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., Secs.  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.

* * * * *

    5. 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. This schedule includes fees for health and safety and 
safeguards inspections where applicable.

[[Page 36961]]



                       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 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............................  $660.
    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............................  $1,300.
    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, 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 2.A.(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 2.A.(1).
        Licensing and inspection...............  Full Cost.
    B. Licenses which authorize the possession,
     use, and/or installation of source
     material for shielding:
        Application............................  $160.
    C. All other source material licenses:
        Application............................  $5,600.
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............................  $6,700.
    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............................  $2,500.
    C. Licenses issued under Secs.  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 10 CFR 170.11(a)(4). These
     licenses are covered by fee Category 3D.
        Application............................  $10,300.
    D. Licenses and approvals issued under
     Secs.  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 Secs.  32.72, 32.73,
     and/or 32.74 of this chapter to nonprofit
     educational institutions whose processing
     or manufacturing is exempt under 10 CFR
     170.11(a)(4).
        Application............................  $2,400.
    E. Licenses for possession and use of
     byproduct material in sealed sources for
     irradiation of materials in which the
     source is not removed from its shield
     (self-shielded units):
        Application............................  $1,700.
    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............................  $3,300.
    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............................  $3,500.
    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............................  $2,100.

[[Page 36962]]

 
    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............................  $3,200.
    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............................  $1,000.
    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............................  $590.
    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............................  $5,600.
    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............................  $2,300.
    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........................  $2,400.
    O. Licenses for possession and use of
     byproduct material issued under Part 34 of
     this chapter for industrial radiography
     operations:
        Application............................  $5,900.
    P. All other specific byproduct material
     licenses, except those in Categories 4A
     through 9D:
        Application............................  $1,300.
4. Waste disposal and processing:
    A. Licenses specifically authorizing the
     receipt of waste byproduct material,
     source material, or special nuclear
     material from other persons for the
     purpose of contingency storage or
     commercial land disposal by the licensee;
     or licenses authorizing contingency
     storage of low-level radioactive waste at
     the site of nuclear power reactors; or
     licenses for receipt of waste from other
     persons for incineration or other
     treatment, packaging of resulting waste
     and residues, and transfer of packages to
     another person authorized to receive or
     dispose of waste material:
        Licensing and inspection...............  Full Cost.
    B. Licenses specifically authorizing the
     receipt of waste byproduct material,
     source material, or special nuclear
     material from other persons for the
     purpose of packaging or repackaging the
     material. The licensee will dispose of the
     material by transfer to another person
     authorized to receive or dispose of the
     material:
        Application............................  $1,700.
    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............................  $2,600.
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............................  $6,100.
    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............................  $11,400.
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............................  $6,200.
    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............................  $4,500.
    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
     teletherapy devices:
        Application............................  $2,400.
8. Civil defense:

[[Page 36963]]

 
    A. Licenses for possession and use of
     byproduct material, source material, or
     special nuclear material for civil defense
     activities:
        Application............................  $330.
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...............  $5,300.
    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...............  $3,800.
    C. Safety evaluation of sealed sources
     containing byproduct material, source
     material, or special nuclear material,
     except reactor fuel, for commercial
     distribution:
        Application--each source...............  $1,600.
    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...............  $540.
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............................  $400.
        Inspections............................  Full Cost.
11. Review of standardized spent fuel
 facilities:
    Licensing and inspection...................  Full Cost.
12. Special projects: <SUP>5</SUP>
    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.
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 export or
         import of radioactive wastes in
         multiple forms from multiple
         generators or brokers in the exporting
         country and/or going to multiple
         treatment, storage or disposal
         facilities in one or more receiving
         countries.
            Application--new license...........  $9,300.
            Amendment..........................  $9,300.
        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 or import of radioactive
         waste involving a single form of waste
         from a single class of generator in
         the exporting country to a single
         treatment, storage and/or disposal
         facility in the receiving country.
            Application--new license...........  $5,700.
            Amendment..........................  $5,700.
        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...........  $1,700.
            Amendment..........................  $1,700.
        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...........  $1,100.
            Amendment..........................  $1,100.
        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..........................  $210.
16. Reciprocity:
    Agreement State licensees who conduct
     activities under the reciprocity
     provisions of 10 CFR 150.20.
        Application (initial filing of Form      $1,200.
         241).

[[Page 36964]]

 
        Revisions..............................  $200.
------------------------------------------------------------------------
<SUP>1</SUP> Types of fees--Separate charges, as shown in the schedule, will be
  assessed for preapplication 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, and
  certain inspections. The following guidelines apply to these charges:
 (a) Application 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
  preapplication 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/revision fees.
 Applications for amendments to export and import licenses and revisions
  to reciprocity initial applications must be accompanied by the
  prescribed amendment/revision fee for each license/revision 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 nonroutine 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).
<SUP>2</SUP> 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 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.
<SUP>3</SUP> 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.
<SUP>4</SUP> 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.
<SUP>5</SUP> Fees will not be assessed for requests/reports submitted to the NRC:
 (a) In response to a Generic Letter or NRC Bulletin that does not
  result in an amendment to the license, does not result in the review
  of an alternate method or reanalysis to meet the requirements of the
  Generic Letter, or does not involve an unreviewed safety issue;
 (b) In response to an NRC request (at the Associate Office Director
  level or above) to resolve an identified safety, safeguards, or
  environmental issue, or to assist NRC in developing a rule, regulatory
  guide, policy statement, generic letter, or bulletin; or
 (c) As a means of exchanging information between industry organizations
  and the NRC for the purpose of supporting generic regulatory
  improvements or efforts.

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.

    6. 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. 2106 as amended by sec. 6101, Pub. 
L. 101-508, 104 Stat. 1388, (42 U.S.C. 2213); sec. 301, Pub. L. 92-
314, 86 Stat. 222 (42 U.S.C. 2201(w)); sec. 201, 88 Stat. 1242, as 
amended (42 U.S.C. 5841); sec. 2903, Pub. L. 102-486, 106 Stat. 
3125, (42 U.S.C. 2214 note).

    7. In Sec. 171.5, the definition of the term Materials License is 
revised to read as follows:


Sec. 171.5  Definitions.

* * * * *
    Materials License means a license, certificate, approval, 
registration or other form of permission issued by the NRC under the 
regulations in 10 CFR parts 30, 32 through 36, 39, 40, 61, 70, 71, 72, 
and 76.
* * * * *

    8. In Sec. 171.15, paragraphs (b), (c), (d)(1), and (e) are revised 
to read as follows:


Sec. 171.15  Annual Fees: Reactor licenses and spent fuel storage/
reactor decommissioning.

* * * * *
    (b)(1) The FY 2000 annual fee for each operating power reactor 
which must be collected by September 30, 2000, is $2,815,000. This fee 
has been determined by adjusting the FY 1999 actual (prior to rounding) 
annual fee upward by approximately 1.4 percent.
    (2) The FY 1999 annual fee was comprised of a base operating power 
reactor annual fee, a base spent fuel storage/reactor decommissioning 
annual fee, and associated additional charges (surcharges). The 
activities comprising the FY 1999 spent storage/reactor decommissioning 
base annual fee are shown in paragraph (c)(2)(i) and (ii) of this 
section. The activities comprising the FY 1999 surcharge are shown in 
paragraph (d)(1) of this section. The activities comprising the FY 1999 
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.

[[Page 36965]]

    (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 2000 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 $209,000. This fee has 
been determined by increasing the FY 1999 actual (prior to rounding) 
annual fee by approximately 1.4 percent.
    (2) The FY 1999 annual fee was 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 1999 surcharge are shown in paragraph (d)(1) of this 
section. The activities comprising the FY 1999 spent fuel storage/
reactor decommissioning base 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 1999 surcharge are as 
follows:
    (i) Low level waste disposal generic activities;
    (ii) Activities not attributable to an existing NRC licensee or 
class of licensees (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.
* * * * *
    (e) The FY 2000 annual fees for licensees authorized to operate a 
nonpower (test and research) reactor licensed under Part 50 of this 
chapter have been determined by revising the FY 1999 actual (prior to 
rounding) annual fee upward by approximately 1.4 percent. The FY 2000 
annual fee for each nonpower reactor, unless the reactor is exempted 
from fees under Sec. 171.11(a), is as follows:

Research reactor--$87,100
Test reactor--$87,100


    9. 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 
with the annual fee payment, the licensee may pay reduced annual fees 
as shown below. Failure to file a small entity certification in a 
timely manner could result in the denial of any refund that might 
otherwise be due.

------------------------------------------------------------------------
                                                              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
    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. The NRC will include a copy of NRC Form 526 with each annual 
fee invoice sent to a licensee. A licensee who seeks to qualify as a 
small entity must submit the completed NRC Form 526 with the reduced 
annual fee payment.
    (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 2000 annual fees for materials licensees and holders of 
certificates, registrations or approvals subject to fees under this 
section are shown below. The FY 2000 annual fees, which must be 
collected by September 30, 2000, have been determined by adjusting the 
FY 1999 actual (prior to rounding) annual fees upward by approximately 
1.4 percent. As a result of rounding, the FY 2000 annual fee for 
several fee categories is the same as the FY 1999 annual fee. In the FY 
1999 final rule, the NRC stated it would stabilize annual fees by 
adjusting the annual fees only by the percentage change (plus or minus) 
in NRC's total budget authority

[[Page 36966]]

and adjustments based on changes in 10 CFR Part 170 fees, the number of 
licensees paying the fees, and other required adjustments. The FY 1999 
annual fees were comprised of a base annual fee and an additional 
charge (surcharge). The activities comprising the FY 1999 surcharge are 
shown for convenience in paragraph (e) of this section.

   Schedule of Materials Annual Fees and Fees for Government Agencies
                             Licensed by NRC
                     [See footnotes at end of table]
------------------------------------------------------------------------
             Category of materials licenses                Annual fees <SUP>1</SUP>
----------------------------------------------------------------<SUP>2</SUP> <SUP>3</SUP>-----
1. Special nuclear material:
    A.(1) Licenses for possession and use of U-235 or
     plutonium for fuel fabrication activities.
        (a) Strategic Special Nuclear Material:
            Babcock & Wilcox SNM-42.....................      $3,327,000
            Nuclear Fuel Services SNM-124...............       3,327,000
        (b) Low Enriched Uranium in Dispersible Form
         Used for Fabrication of Power Reactor Fuel:
            Combustion Engineering (Hematite) SNM-33....       1,116,000
            General Electric Company SNM-1097...........       1,116,000
            Siemens Nuclear Power SNM-1227..............       1,116,000
            Westinghouse Electric Company SNM-1107......       1,116,000
    (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 Cogema SNM-1168...................         438,000
        (b) All Others:
            General Electric SNM-960....................         319,000
    B. Licenses for receipt and storage of spent fuel at            (<SUP>11</SUP>)
     an independent spent fuel storage installation
     (ISFSI)............................................
    C. Licenses for possession and use of special                  1,200
     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,                3,400
     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         2,072,000
     uranium enrichment facility........................
2. Source material:
    A.(1) Licenses for possession and use of source              478,000
     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 <SUP>4</SUP>............................         132,000
        Class II facilities <SUP>4</SUP>...........................         111,000
        Other facilities <SUP>4</SUP>..............................          30,800
    (3) Licenses that authorize the receipt of byproduct          81,700
     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 2.A.(2) or Category
     2.A.(4)............................................
    (4) Licenses that authorize the receipt of byproduct          12,900
     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 2.A.(2)...
    B. Licenses that authorize only the possession, use              630
     and/or installation of source material for
     shielding..........................................
    C. All other source material licenses...............          11,800
3. Byproduct material:
    A. Licenses of broad scope for possession and use of          26,300
     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                    6,400
     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 Secs.  32.72, 32.73, and/or          15,600
     32.74 of this chapter authorizing the processing or
     manufacturing and distribution or redistribution of
     radiopharmaceuticals, generators, reagent kits and/
     or sources and devices containing byproduct
     material. This category also includes the
     possession and use of source material for shielding
     authorized under Part 40 of this chapter when
     included on the same license. This category does
     not apply to licenses issued to nonprofit
     educational institutions whose processing or
     manufacturing is exempt under 10 CFR 171.11(a)(1).
     These licenses are covered by fee Category 3D......
    D. Licenses and approvals issued under Secs.  32.72,           3,800
     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 Secs.  32.72, 32.73 and 32.74 of this
     chapter to nonprofit educational institutions whose
     processing or manufacturing is exempt under 10 CFR
     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                3,500
     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                5,800
     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...................

[[Page 36967]]

 
    G. Licenses for possession and use of 10,000 curies           15,000
     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               3,300
     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               4,700
     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               2,100
     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               1,800
     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          11,300
     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                    5,000
     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                 5,300
         services are subject to the fees specified in
         fee Categories 4A, 4B, and 4C..................
    O. Licenses for possession and use of byproduct               14,900
     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,             2,600
     except those in Categories 4A through 9D...........
4. Waste disposal and processing:
    A. Licenses specifically authorizing the receipt of            <SUP>5</SUP> 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           11,500
     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............................
    C. Licenses specifically authorizing the receipt of            8,500
     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               10,100
     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                <SUP>5</SUP> N/A
     material for field flooding tracer studies.........
6. Nuclear laundries:
    A. Licenses for commercial collection and laundry of          19,200
     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          15,500
     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                  28,100
     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 <SUP>9</SUP>...................
    C. Other licenses issued under Parts 30, 35, 40, and           5,900
     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 <SUP>9</SUP>.................................
8. Civil defense:
    A. Licenses for possession and use of byproduct                1,200
     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           6,100
     devices or products containing byproduct material,
     source material, or special nuclear material,
     except reactor fuel devices, for commercial
     distribution.......................................

[[Page 36968]]

 
    B. Registrations issued for the safety evaluation of           4,400
     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           1,900
     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             620
     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
     10 CFR Part 71.
        Users and Fabricators...........................          67,600
        Users...........................................           2,300
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 10 CFR 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           363,000
 Government agencies....................................
18. Department of Energy:
    A. Certificates of Compliance.......................    \10\ 884,000
    B. Uranium Mill Tailing Radiation Control Act               881,000
     (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 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, 1999, and permanently ceased licensed activities
  entirely by September 30, 1999. 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.
\5\ There are no existing NRC licenses in these fee categories. Once NRC
  issues a license for these categories, the Commission will consider
  establishing an annual fee for that 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 the 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 for
  activities whose costs are not covered by the Nuclear Waste Fund.
\11\ See 10 CFR 171.15(c).
\12\ See 10 CFR 171.15(c).

    (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 classes of licensees; 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 conducted 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.

    10. Section 171.19 is revised to read as follows:


Sec. 171.19  Payment.

    (a) Method of payment. Annual fee payments, made payable to the 
U.S. Nuclear Regulatory Commission, are to be made in U.S. funds by 
electronic funds transfer such as ACH (Automated Clearing House) using 
EDI (Electronic Data Interchange), check, draft, money order, or credit 
card. Federal agencies

[[Page 36969]]

may also make payment by the On-line Payment and Collection System 
(OPAC's). Where specific payment instructions are provided on the 
invoices to applicants and licensees, payment should be made 
accordingly, e.g. invoices of $5,000 or more should be paid via ACH 
through NRC's Lockbox Bank at the address indicated on the invoice. 
Credit card payments should be made up to the limit established by the 
credit card bank, in accordance with specific instructions provided 
with the invoices, to the Lockbox Bank designated for credit card 
payments. In accordance with Department of the Treasury requirements, 
refunds will only be made upon receipt of information on the payee's 
financial institution and bank accounts.
    (b) Annual fees in the amount of $100,000 or more and described in 
the Federal Register document issued under Sec. 171.13 must be paid in 
quarterly installments of 25 percent as billed by the NRC. The quarters 
begin on October 1, January 1, April 1, and July 1 of each fiscal year. 
The NRC will adjust the fourth quarterly invoice to recover the full 
amount of the revised annual fee. If the amounts collected in the first 
three quarters exceed the amount of the revised annual fee, the 
overpayment will be refunded. Licensees whose annual fee for FY 1999 
was less than $100,000 (billed on the anniversary date of the license), 
and whose revised annual fee for FY 2000 would be $100,000 (subject to 
quarterly billing), would be issued a bill upon publication of the 
final rule for the full amount of the FY 2000 annual fee, less any 
payments received for FY 2000 based on the anniversary date billing 
process.
    (c) Annual fees that are less than $100,000 are billed on the 
anniversary date of the license. For annual fee purposes, the 
anniversary date of the license is considered to be the first day of 
the month in which the original license was issued by the NRC. 
Licensees that are billed on the license anniversary date will be 
assessed the annual fee in effect on the anniversary date of the 
license. Materials licenses subject to the annual fee that are 
terminated during the fiscal year but before the anniversary month of 
the license will be billed upon termination for the fee in effect at 
the time of the billing. New materials licenses subject to the annual 
fee will be billed in the month the license is issued or in the next 
available monthly billing for the fee in effect on the anniversary date 
of the license. Thereafter, annual fees for new licenses will be 
assessed in the anniversary month of the license.
    (d) Annual fees of less than $100,000 must be paid as billed by the 
NRC. Materials license annual fees that are less than $100,000 are 
billed on the anniversary date of the license. The materials licensees 
that are billed on the anniversary date of the license are those 
covered by fee categories 1C, 1.D, 2(A)(2) other, 2A(3), 2A(4), 2B, 2C, 
3A through 3P, 4B through 9D, 10A, and 10B.
    (e) Payment is due on the invoice date and interest accrues from 
the date of the invoice. However, interest will be waived if payment is 
received within 30 days from the invoice date.

    Dated at Rockville, Maryland, this 25th day of May, 2000.

    For the Nuclear Regulatory Commission.
Jesse L. Funches,
Chief Financial Officer.

    Note: This appendix will not appear in the code of federal 
regulations.

Appendix A to This Final Rule--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 2.801). These size 
standards reflect the Small Business Administration's most common 
receipts-based size standards and include a size standard for 
business concerns that are manufacturing entities. The NRC uses the 
size standards to reduce the impact of annual fees on small entities 
by establishing a licensee's eligibility to qualify for a maximum 
small entity fee. The small entity fee categories in Sec. 171.16(c) 
of this final rule are based on the NRC's size standards.
    The Omnibus Budget Reconciliation Act (OBRA-90), as amended, 
requires that the NRC recover approximately 100 percent of its 
budget authority, less appropriations from the Nuclear Waste Fund, 
by assessing license and annual fees. OBRA-90 requires that the 
schedule of charges established by rule should fairly and equitably 
allocate the total amount to recovered from NRC's licensees and be 
assessed under the principle that licensees who require the greatest 
expenditure of agency resources pay the greatest annual charges. The 
amount to be collected for FY 2000 is approximately $447.0 million.
    Since 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 was a substantial change in the total NRC 
budget authority or the magnitude of the budget allocated to a 
specific class of licensees, 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 licensees and established rebaselined annual fees for FY 
1999. The NRC stated in the final FY 1999 rule that to stabilize 
fees it would continue the policy established in FY 1995 to adjust 
the annual fees by the percent change method, unless there was a 
substantial change in the total NRC budget or the magnitude of the 
budget allocated to a specific class of licensees, in which case the 
annual fee base would be reestablished.
    After evaluating budget data for FY 2000, the NRC has concluded 
that there has not been a substantial change in the total NRC budget 
authority or the magnitude of the budget allocated to a specific 
class of licensees since FY 1999. Therefore, the NRC's FY 2000 
annual fees have been determined by the percent change method based 
on FY 1999 annual fees. As a result, the FY 2000 annual fees for all 
licenses will increase by about 1.4 percent.
    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 final regulatory flexibility analysis is 
prepared. This Regulatory Flexibility Analysis and the small entity 
compliance guide (Attachment 1) have been prepared for the FY 2000 
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

[[Page 36970]]

annual fees on materials licensees. About 20 percent of these 
licensees (approximately 1,200 licensees for FY 1999) have requested 
small entity certification in the past.
    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. 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.
    Since annual fees for materials licenses were first established, 
approximately 3,000 license, approval, and registration terminations 
have been requested. 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 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.
    Commenters on the FY 2000 proposed fee rule (65 FR 16250; March 
27, 2000), indicated that the same impacts, or variants of these 
impacts, would occur as a result of the proposed rule, especially in 
relation to the NRC's proposed 25 percent increase in small entity 
fees. Commenters also suggested the same alternatives, or variants 
of these alternatives, to basing fees on the NRC size standards for 
small entities that have been previously suggested and considered by 
the NRC. For a complete discussion of the impacts and alternatives 
suggested by commenters in response to the FY 2000 proposed fee 
rule, please see Section III, C, 2 of the Supplementary Information 
section of this final rule.
    The NRC has again reexamined its previous evaluations of these 
alternatives, particularly in light of the 25 percent increase in 
the maximum small entity fees. The NRC continues to believe that 
establishment of a maximum fee for small entities based on its size 
standards 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 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 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 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.
    Between 1991 and 1999, changes in both the external and internal 
environment have impacted NRC costs and those of its licensees. The 
upper and lower tier maximum small entity annual fees did not change 
in those years. Increases in the NRC materials license fees, 
Agreement States' materials license fees, and the Consumer Price 
Index all indicate that the NRC small entity fee established in 1991 
should be revised. In addition to these increases, the structure of 
the fees that NRC charges 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.
    While the annual fees increased for most materials licensees as 
a result of these changes, the NRC's annual fees assessed to small 
entities have not been adjusted to include the additional costs. As 
a result, small entities are currently paying a smaller percentage 
of the total NRC regulatory costs related to them than they did in 
FY 1991 and FY 1992 when the small entity fees were established. The 
amount of the small entity subsidy paid by other licensees for these 
regulatory costs was $4.3 million in FY 1991. With the addition of 
the lower tier small entity fee in FY 1992, the small entity subsidy 
increased to $5.4 million, or about $2,700 for each of the 2000 
small entities in FY 1992. Although the number of small entities had 
declined to approximately 1,200 by 1999, the FY 1999 small entity 
subsidy was $5.3 million, or about $4,400 for each small entity.
    Based on the changes that have occurred since FY 1991, the NRC 
has reanalyzed its maximum small entity annual fee. As part of the 
reanalysis, the NRC considered the 1999 fees assessed by Agreement 
States, the NRC's FY 1999 fee structure, and the increase in the 
Consumer Price Index between FY 1991 and FY 1999. The reanalysis and 
alternatives considered by the NRC for revising the small entity 
annual fees are described below.

A. Analysis of Maximum Small Entity Annual Fee

    The analysis included a review of the fee structures in 
Agreement States to determine what fees they currently assess small 
entities. To maintain consistency and to facilitate direct 
comparisons between 1991 and 1999, the analysis focused on the fee 
categories used in 1991 and included fees imposed by the six 
benchmark Agreement States used in 1991 and five other Agreement 
States with the highest number of licenses.
    The eleven states selected were: California, Texas, New York, 
Florida, Illinois, Tennessee, Maryland, Georgia, Washington,

[[Page 36971]]

Utah, and Nebraska. Seven NRC fee categories were selected for 
review based on the number of small entities present in the category 
and inclusion of the category in the 1991 review. The fee categories 
selected were: 3M--Research and Development, 3N--Services, 3O--
Industrial Radiography, 3P--Gauges and Other Industrial Uses, 5A--
Well Logging, 7A--Teletherapy, and 7C--Nuclear Medicine. Together 
these categories comprise 80 percent of NRC's small entity licensees 
for FY 1999.
    Among the eleven Agreement States reviewed, the fee structures 
varied both in terms of the fee amounts and the services included in 
the fees. Of the eleven states, only Georgia and Washington provide 
a separate small entity fee for qualified licensees. The remaining 
nine states do not identify small entities in their fee structure 
and therefore assess the same fee to all licensees regardless of 
their size.
    Increases in the materials license fees since 1991 for the 
eleven Agreement States selected ranged from 10 percent in New York 
to 218 percent in Utah (see Table 1). Of particular note are the 
increases in the States of Washington, Georgia, and Utah. Washington 
and Utah are two of the original states benchmarked in 1991. Georgia 
and Washington are the two Agreement States reviewed that have a 
separate annual fee for small entities.
    The structure of the total fees per year in Georgia is similar 
to that used to determine the total fees paid by NRC small entity 
licensees in 1991. In Georgia, this fee increased by 64 percent from 
1991 to 1999. The increase in Georgia is directly comparable to the 
NRC context since Georgia uses the same two-tier structure for its 
small entity annual fees.
    Washington's maximum fee assessed to small entities increased by 
25 percent, from approximately $3,800 in 1991 to approximately 
$4,700 in 1999. The $4,700 fee is charged for an Industrial 
Radiography license. Washington had the highest maximum fee in 1991 
and it was this fee that provided the basis for the maximum fees 
assessed to NRC small entity licensees.
    Utah had the lowest maximum fee of the six benchmark states in 
1991 . By 1999, Utah's maximum fee had increased by 218 percent, 
from $440 to $1,400. As in Washington, the maximum fee is charged 
for an Industrial Radiography license.
    Table 1 shows the increases in the maximum total fees paid by 
small entities in the selected Agreement States from 1991 to 1999. 
Data is not presented in the Table for the State of California 
because California does not use fee categories that are directly 
mapped to NRC fee categories. California charges a base fee plus a 
fee based on the number of millicuries handled. In addition, because 
the FY 1991 fees for the State of Maryland were not available, only 
the maximum fee for FY 1999 is shown in the Table. The change in the 
maximum fee paid by NRC small entity licensees over the same period 
is included for purposes of comparison. This fee decreased by 47 
percent while fees in the Agreement States were increasing. The 
reason for this decrease is discussed in B. below.

                                                     Table 1
----------------------------------------------------------------------------------------------------------------
                 Percentage change in the maximum total fee assessed to small entities annually
-----------------------------------------------------------------------------------------------------------------
                                                                   Maximum fee     Maximum fee
                             State                                    1991            1999        Percent change
----------------------------------------------------------------------------------------------------------------
Utah...........................................................            $440          $1,400             218
Nebraska.......................................................           1,456           2,925             101
Texas..........................................................           2,100           4,230             101
Tennessee......................................................           2,000           4,000             100
Georgia........................................................           1,650           2,700              64
Florida........................................................           1,925           2,657              38
Illinois.......................................................           2,000           2,733              37
Washington.....................................................           3,760           4,699              25
New York.......................................................           1,000           1,100              10
Maryland.......................................................           (\1\)           1,350            (\1\)
NRC Small Entity...............................................           3,400           1,800            (-47) 
----------------------------------------------------------------------------------------------------------------
\1\ Not available.

    The increases in the fees assessed to small entities in 
Agreement States between 1991 and 1999 suggest that the cost to 
support radioactive materials licensees has increased over time. 
Because small entities in Agreement States are currently paying the 
increased fees, it can be inferred that the fees do not have a 
significant impact on them.

B. Analysis of Changes in the NRC Small Entity Fee Structure

    When NRC established its small entity annual fee in 1991, the 
fee was viewed as one component of the total annual costs that would 
be assessed to small entities. Table 2 presents the composition of 
the 1991 total annual cost for small entities.

                                                                         Table 2
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    Total fees assessed to NRC small entities in 1991
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                Selected fee categories
                                                              ------------------------------------------------------------------------------------------
                             Fees                                             Nuclear     Research &                Industrial
                                                               Teletherapy    medicine   development    Services   radiography   Gauges  3P      Well
                                                                    7A           7C           3M           3N           3O                   logging  5A
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annualized Inspection Fee \1\................................         $920         $420         $200         $140         $920         $180         $210
Amendment Fee \2\............................................          340          340          630          320          390          300          430
Annualized Renewal Fee \3\...................................          130          170           40          130          280           80          320
                                                              ------------------------------------------------------------------------------------------
    Subtotal.................................................        1,390          930          870          590        1,590          560          960
Annual Fee for Small Entity..................................        1,800        1,800        1,800        1,800        1,800     \4\1,500        1,800
                                                              ------------------------------------------------------------------------------------------

[[Page 36972]]

 
    Total Fees (Rounded).....................................        3,200        2,700        2,700        2,400        3,400        2,100        2,800
                                                              ------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ NRC charged a separate fee for inspections under Part 170. The inspection frequency, defined as years between inspections, varies with each category
  of license. To annualize the inspection fee, the fee charged per inspection was divided by the inspection frequency.
\2\ NRC charged a fee for each amendment to a license. In determining the total annual cost, one amendment per year was assumed.
\3\ In 1991 NRC issued materials licenses for a five-year period. At the end of this period each licensee paid a fee under Part 170 to renew the
  license. Because the licensee paid this fee once every five years, in calculating the total annual cost, the renewal fee was annualized by dividing by
  five.
\4\ The FY 1991 annual fee of $1,500 for category 3P was less than the $1,800 small entity annual fee. Therefore, small entities in this category paid
  the $1,500 annual fee, not $1,800.

    Since 1991, NRC's Part 170 inspection, renewal, and amendment 
fees for materials licenses have been eliminated and the costs of 
those services included in the annual fee. Although the annual fee 
now covers the costs for inspections, renewals, and amendments, the 
small entity fee itself remained unchanged. As a result, the maximum 
NRC fees paid by small entities has declined by 47 percent, from 
$3,400 in 1991 to $1,800 in 1999. This decrease occurred while the 
average total non-small entity annual fee for other NRC materials 
licenses increased by 25 percent and the average maximum annual fee 
for small entity licensees in Agreement States increased by 54 
percent.
    Table 3 compares the total fees (annual, inspection, renewal, 
and amendment) assessed to NRC materials licensees in 1991 with the 
total fees (annual) assessed to these licensees in 1999. In five of 
the seven categories the fee increases were over 20 percent. Of 
particular note are the increases in categories 7C--Nuclear 
Medicine, 3O--Industrial Radiography, and 3P--Gauges. These 
categories contain 67 percent of the small entity licenses invoiced 
for FY1999. The average fee increase for these three categories is 
31 percent, compared to the 25 percent average for the seven 
categories reviewed.

                                                                         Table 3
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                   Comparison between total NRC annual fees for selected categories for 1991 and 1999
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 Nuclear     Research &                Industrial
                    NRC fees                      Teletherapy    Medicine   Development    Services   Radiography   Gauges  3P      Well       Average
                                                       7A           7C           3M           3N           3O                   Logging  5A
--------------------------------------------------------------------------------------------------------------------------------------------------------
1991 Annual Fee.................................       $9,700       $3,500       $4,000       $4,400       $9,300       $1,500       $7,000       $5,600
1991 Other Fees:
Annualized Inspection Fee.......................          920          420          200          140          920          180          200  ...........
Amendment Fee...................................          340          340          630          320          390          300          430  ...........
Annualized Renewal Fee..........................          130          170           40          130          280           80          320  ...........
                                                 -------------------------------------------------------------------------------------------------------
    Total Other Fees............................        1,390          930          870          590        1,590          560          950  ...........
Total Fee in 1991 (Rounded).....................       11,100        4,400        4,900        5,000       10,900        2,100        8,000        6,700
Total (Annual) Fee In 1999......................       15,300        5,800        5,000        5,200       14,700        2,600        9,900        8,400
Fee Increase from 1991 to 1999..................          38%          32%           2%           4%          35%          24%          24%          25%
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Table 4 compares the 1991 fees for amendments and inspections 
with the cost to provide these services in 1999. The cost was 
determined by multiplying the average hours to complete amendments 
and inspections by the hourly rate. The 1999 cost for amendments is 
on average 60 percent higher than the amendment fee assessed in 
1991; inspection costs are 260 percent higher. These services are 
provided to all licensees, both small entities and non-small 
entities. However, under the current fee structure these costs are 
recovered only from annual fees assessed to non-small entities. 
Because the small entity annual fee has remained static, it does not 
reflect any increases in NRC's costs since 1991.

                                                     Table 4
----------------------------------------------------------------------------------------------------------------
                        Comparison of NRC inspection and amendment costs in 1991 and 1999
-----------------------------------------------------------------------------------------------------------------
                                                  Amendments                            Inspections
                                   -----------------------------------------------------------------------------
                                                                Increase                               Increase
                                        1991         1999      (percent)       1991         1999      (percent)
----------------------------------------------------------------------------------------------------------------
7A--Teletherapy...................         $340         $450           32         $920       $3,200          248
7C--Nuclear Medicine..............          340          520           53          830        3,100          273

[[Page 36973]]

 
3M--Research & Development........          630          710           13          800        2,300          188
3N--Services......................          320          690          116          550        2,700          391
3O--Industrial Radiography........          390          780          100          920        3,300          259
3P--Gauges........................          300          390           30          920        2,200          139
5A--Well Logging..................          430          950          121          640        2,700          322
Average...........................          400          640           60          800        2,900          263
----------------------------------------------------------------------------------------------------------------

    Given NRC's 100 percent cost recovery requirement, the portion 
of annual fees not recovered from small entities is passed to other 
NRC licensees. The increasing disparity between the small entity fee 
and the cost of NRC services included in the annual fee calls for a 
more equitable distribution of the NRC costs to these licensees. An 
increase in the small entity fee would mitigate the cost differences 
and would permit small entities to assume a greater portion of NRC 
costs attributable to them. If everything else remains the same, an 
increase in the small entity fee would result in a decrease in the 
small entity subsidy paid by other licensees.

C. Analysis of Increases in the Consumer Price Index

    On a national level the cost of goods and services increased 
between 1991 and 1999. According to the U.S. Department of Labor, 
Bureau of Labor Statistics, the Consumer Price Index (CPI) increased 
28.8 points, from 136.2 in 1991 to 165.0 for the first half of 1999, 
an increase of 21 percent. This index is an accepted economic 
indicator of price changes in the US economy. The 21 percent 
increase in the CPI is evidence that costs in NRC's external 
environment have increased. Obviously, NRC's cost of providing 
services to its licensees will be impacted by these increases.

D. Alternatives for Revising the Maximum Annual Fee

1. Increase Small Entity Fees Using the 1991 Methodology

    Following the reasoning used in the 1991 process, the maximum 
annual fee for small entities could be revised to reflect the 
current maximum fees charged by Agreement States and the changes in 
the NRC fee structure since 1991. The maximum Agreement State fee 
assessed to small entities in 1999 is $4,700. Therefore, the maximum 
value for NRC's small entity fee could be set at $4,700.
    This method would allow the NRC to recover from small entities 
48 percent of the total amount of the small entity annual fee 
invoices. Although this method is defensible, because it is based on 
sound reasoning used in the original establishment of the small 
entity fees that have been in place since 1991, it is based on an 
external fee that is outside NRC's direct control.

2. Increase the Small Entity Fee Using the Average Increase in NRC 
Materials License Fees From 1991 to 1999

    From 1991 to 1999 total NRC fees for materials licenses 
increased, on average, by 25 percent. This percentage could be 
applied to the existing small entity fee to give a new small entity 
fee of $2,300.
    This method is a simple and obvious means of applying the rates 
of increase in NRC fees since FY 1991 to the small entity fees. This 
method does not consider the changes to the total fees paid by small 
entities since FY 1991 and does not incorporate changes in the 
composition of the total fees assessed to small entities per year by 
Agreement States. However, it does rely on the increases to the 
total fees paid by other NRC materials licensees since FY 1991. This 
method could also provide a sustainable and simple means of 
determining whether NRC's small entity fees should be revised in the 
future.

3. Add the 1991 Amendment, Renewal, and Inspection Costs to the 
Existing Small Entity Fee and Increase the Sum by the Average Increase 
in NRC Materials License Fees From 1991 to 1999

    The small entity fee could be increased by loading the existing 
small entity annual fee of $1,800 with the amendment, renewal, and 
inspection costs used in 1991 and increasing the total by 25 
percent. This method not only incorporates the average increase in 
NRC fees but it bases the increase on the total annual costs that 
were assessed to small entities in 1991.
    To revise the small entity fee using this method, a category 
must be selected as the 1991 base. The total annual cost for this 
category, as presented in Table 3, will then be increased by the NRC 
average of 25 percent. Five possible approaches to selecting the 
1991 base were explored.

Method 3A--Maximum Fee Category in the Benchmark States

    Method 3A uses the Industrial Radiography category as the base. 
This category had the maximum fee in the Agreement States 
benchmarked in 1991. The total NRC fee assessed to the Industrial 
Radiography category in 1991 was $3,400. Increasing this fee by 25 
percent gives a new small entity fee of $4,300.

Method 3B--Highest Number of Small Entities Present

    Method 3B uses the fee category with the highest number of small 
entities. In FY 1999, Category 3P, Gauges and Other Industrial Uses, 
had 30 percent of all NRC small entity licensees. This was the 
highest number of small entities present in a single category. In 
1991, the total fees for Category 3P was $2,100. A 25 percent 
increase in this fee would set the small entity fee at $2,600.

Method 3C--Highest Number of Upper Tier Small Entities Present

    Method 3C uses Category 7C, Nuclear Medicine as the base. This 
category has the highest number of upper tier small entities and is 
considered a viable base because the small entity annual fee 
originally established in FY 1991 was the upper tier fee. In 1991, 
Category 7C had a total fee of $2,700; this base would give a new 
small entity fee of $3,400.
    Method 3A yields a 45 percent recovery of the invoiced amounts 
from small entities, the highest recovery rate under Method 3. 
However, the Industrial Radiography category contains only 7 percent 
of all NRC small entity licensees in 1999 and arguably does not 
affect a significant number of the small entities. Method 3B 
addresses this issue and uses Category 3P, the category with the 
highest number of small entities. However, the 3P Category also has 
the lowest 1991 total cost and results in a recovery rate of 34 
percent from small entities, the lowest under Method 3. Method 3C 
uses Category 7C, Nuclear Medicine, and is preferable to both 
Methods 3A and 3B in that it yields a 37 percent recovery rate from 
small entities and contains 30 percent of the small entity 
licensees.
    Methods 3A, 3B and 3C are all based on the selection of a single 
fee category as the 1991 base. Using the fee from a specific fee 
category as the base fee can implicitly make the category a 
benchmark. This increases the risk of challenges to the fee if 
significant changes occur in the benchmark category.

Method 3D--Weighted Average of the Total Fees in the Seven 
Categories

    Method 3D uses the number of upper tier small entities in each 
category to weight the total fee assessed to each category in 1991. 
The weighted-average of $2,700 is then used as the base. This gives 
a new small entity fee of $3,400.

[[Page 36974]]

Method 3E--Average of the Total Fees for the Seven Categories

    Method 3E uses the average total fee for the categories reviewed 
as the base fee. The average total fee of $2,800 is then increased 
by 25 percent to give a new small entity fee of $3,500.
    Both Methods 3D and 3E use averages to determine the base fee 
and this reduces the risks associated with Methods 3A, 3B and 3C. 
Both methods yield the same recovery rate of 37 percent and can be 
considered equally acceptable from a monetary perspective.
    Because Method 3D uses a weighted average, the number of small 
entities in each of the seven categories are factored into the 
selection process while smoothing the impact of the highest and 
lowest fee categories.
    While Methods 3D and 3E would consider the total fees paid by 
small entities in FY 1991 and would increase the amounts recovered 
from small entities thereby reducing the small entity subsidy paid 
by other licensees, the percentage increase under either of these 
methods would be larger than the average percentage increase in the 
total fees assessed to other NRC materials licensees since FY 1991.

IV. Conclusion

    Based on the results of the reanalysis, the NRC is increasing 
the maximum small entity annual fee by 25 percent, based on the 
percentage increase since FY 1991 in the average total fees paid per 
year by other NRC materials licensees. As a result, the maximum 
small entity annual fee increases from $1,800 to $2,300. By 
increasing the maximum annual fee for small entities from $1,800 to 
$2,300, the annual fee for many small entities is 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 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. Therefore, the NRC is continuing to 
provide a lower-tier small entity annual fee for small entities with 
relatively low gross annual receipts. The lower-tier small entity 
fee also applies to manufacturing concerns, and educational 
institutions not State or publicly supported, with less than 35 
employees. The NRC is increasing the lower tier small entity fee by 
the same percentage increase to the maximum small entity annual fee. 
This 25 percent increase results in the lower tier small entity fee 
increasing from $400 to $500.
    In the future, the NRC plans to re-examine the small entity fees 
each year that annual fees are rebaselined. As part of the re-
examination, the NRC will consider the percentage increase in fees 
paid by other NRC materials licensees since the last rebaselining to 
determine if the maximum small entity annual fees should be revised.
    Please see Section III, C, 2 of the Supplementary Information 
section of this final rule for a discussion of the comments received 
on the increase in small entity fees, including the suggestion that 
the NRC establish addition tiers or levels of fees.
    The NRC continues to believe that the 10 CFR Part 170 
application fees, or any adjustments to these licensing fees during 
the past year, do not have a significant impact on small entities.

V. 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 collect 100 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 analyses, 
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 
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.

Attachment 1 to Appendix A

U.S. Nuclear Regulatory Commission, Small Entity Compliance Guide, 
Fiscal Year 2000

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), requires the NRC to collect 
approximately 100 percent of its budget authority each year through 
fees. This rule is considered a ``major'' rule under this law. This 
compliance guide has been prepared to assist NRC material licensees 
comply with the FY 2000 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 2000 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 
complete NRC Form 526 to qualify for the reduced annual fee. This 
form accompanies each annual fee invoice mailed to materials 
licensees. 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 a 
small entity certification 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 organization--a not-for-profit organization which is 
independently owned and operated and has annual gross receipts of $5 
million or less;
    4. Small governmental jurisdiction--a government of a city, 
county, town, township, village, school district or special district 
with a population of less than 50,000;
    5. Small educational institution--an educational institution 
supported by a qualifying small governmental jurisdiction, or one 
that is not state or publicly supported and has 500 or fewer 
employees.\1\
---------------------------------------------------------------------------

    \1\ An educational institution referred to in the size standards 
is an entity whose primary function is education, whose programs are 
accredited by a nationally recognized accrediting agency or 
association, who is legally authorized to provide a program of 
organized instruction or study, who provides an educational program 
for which it awards academic degrees, and whose educational programs 
are available to the public.
---------------------------------------------------------------------------

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 NRC is increasing these fees by 25 percent. The FY 
2000 small entity fees are as follows:

[[Page 36975]]



------------------------------------------------------------------------
                                                              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, 
enclosed with the fee invoice, to certify that it meets NRC's size 
standards for a small entity. Failure to file NRC Form 526 in a 
timely manner may result in the denial of any refund that might 
otherwise be due.

Instructions for Completing NRC Form 526

    1. File a separate NRC Form 526 for each annual fee invoice 
received.
    2. Complete all items on NRC Form 526 as follows:
    a. The license number and invoice number must be entered exactly 
as they appear on the annual fee invoice.
    b. The Standard Industrial Classification (SIC) Code should be 
entered if it is known.
    c. The licensee's name and address must be entered as they 
appear on the invoice. Name and/or address changes for billing 
purposes must be annotated on the invoice. Correcting the name and/
or address on NRC Form 526 or on the 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 under which the licensee 
qualifies as a small entity. Check one box only. Note the following:
    (1) The size standards apply to the licensee, not the individual 
authorized users listed in the license.
    (2) Gross annual receipts as used in the size standards includes 
all revenue in whatever form received or accrued from whatever 
sources, not solely receipts from licensed activities. 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 by a travel agent, real estate agent, 
advertising agent, or conference management service provider.
    (3) A licensee who is a subsidiary of a large entity does not 
qualify as a small entity.
    (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 for that fiscal 
year. Because a licensee's ``size,'' or the size standards, may 
change from year to year, the invoice reflects the full fee and a 
new Form must be completed and returned for the fee to be reduced to 
the small entity fee. 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 about the NRC's annual fees, please call 
the license fee staff at 301-415-7554, e-mail the fee staff at 
<a href="/cdn-cgi/l/email-protection#d4b2b1b1a794baa6b7fab3bba2"><span class="__cf_email__" data-cfemail="5c3a39392f1c322e3f723b332a">[email protected]</span></a>, 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. 00-14496 Filed 6-9-00; 8:45 am]
BILLING CODE 7590-01-P


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