36946 Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations

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.

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 CAG@nrc.gov.

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 pdr@nrc.gov.

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

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

36948 Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations

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 fullcost licensing actions and inspections

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

36950 Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations

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

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

36952 Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations

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

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

Class of licensees FY 1999

annual fee

FY 2000

annual fee

Power Reactors (Including Spent Fuel Storage/Reactor Decommissioning fee) ................................................... $2,776,000 $2,815,000

Spent Fuel Storage/Reactor Decommissioning ...................................................................................................... 206,000 209,000

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

UF6 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

36954 Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations

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 fees@nrc.gov. 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

§ 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 § 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 § 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 § 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

program

Materials

program

Direct Program Salaries & Benefits ......................................................................................................................... $103.3M $29.0M

Overhead Salaries & Benefits, Program Travel and Other Support ....................................................................... $ 53.2M $15.3M

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 direct FTE divided by 1,776 hours) ............................................................... $144 $143

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).

Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations 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 §§ 170.21 and 170.31 to

reflect the changes in the revised hourly

rates. The full cost fees assessed under

§§ 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 §§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 § 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 § 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 § 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 § 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 §§ 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

36956 Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations

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 reviews, and other assistance to other Federal agencies) .......................... ¥3.20 ¥3.85

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 Invoices ............................................................................................. 3.40 3.30

Estimated Payments from Prior Year Invoices ................................................................................................ ¥5.50 ¥3.20

Subtotal ..................................................................................................................................................... 3.20 5.70

Total Part 171 Billing ................................................................................................................................. $345.10 $346.70

1These 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

Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations 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 reexamine the small entity fees each year

that annual fees are rebaselined.

3. Administrative Amendments

a. The NRC is revising § 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 § 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 § 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

§ 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 § 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 § 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—UF6 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 Material.$2,300 to $67,600

2Excludes 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 § 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 § 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

36958 Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations

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

§ 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 lowlevel 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

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

§ 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 § 170.12, paragraph (c)(1) is

revised to read as follows:

§ 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:

§ 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 §§ 170.21 and 170.31

will be calculated using the following

applicable professional staff-hour rates:

Reactor Program (§ 170.21 Activities)—

$144 per hour

Nuclear Materials and Nuclear Waste

Program (§ 170.31 Activities)—$143

per hour

4. In § 170.21, the introductory text,

Category K, and footnotes 1 and 2 to the

table are revised to read as follows:

36960 Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations

§ 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 Fees1 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

1Fees will not be charged for orders issued by the Commission under § 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., §§ 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. 2Full 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 § 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 § 170.20.

* * * * *

5. Section 170.31 is revised to read as

follows:

§ 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.

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

36962 Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations

SCHEDULE OF MATERIALS FEES—Continued

[See footnotes at end of table]

Category of materials licenses and type of fees 1 Fee 2 3

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:

Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations 36963

SCHEDULE OF MATERIALS FEES—Continued

[See footnotes at end of table]

Category of materials licenses and type of fees 1 Fee 2 3

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: 5

Approvals and preapplication/Licensing activities .......................................................................................................................... Full Cost.

Inspections ...................................................................................................................................................................................... Full Cost.

13. A. Spent fuel storage cask Certificate of Compliance:

Licensing .................................................................................................................................................................................. Full Cost.

B. Inspections related to spent fuel storage cask Certificate of Compliance ................................................................................ Full Cost.

C. Inspections related to storage of spent fuel under § 72.210 of this chapter ............................................................................. Full Cost.

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 241) ...................................................................................................................................... $1,200.

36964 Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations

SCHEDULE OF MATERIALS FEES—Continued

[See footnotes at end of table]

Category of materials licenses and type of fees 1 Fee 2 3

Revisions ................................................................................................................................................................................. $200.

1Types 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

§ 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 § 170.12(c). 2Fees 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. 3Full cost fees will be determined based on the professional staff time multiplied by the appropriate professional hourly rate established in

§ 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

§ 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 § 170.20. 4 Licensees paying fees under Categories 1A, 1B, and 1E are not subject to fees under Categories 1C and 1D for sealed sources authorized in

the same license except for an application that deals only with the sealed sources authorized by the license. 5Fees 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 § 171.5, the definition of the term

Materials License is revised to read as

follows:

§ 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 § 171.15, paragraphs (b), (c),

(d)(1), and (e) are revised to read as

follows:

§ 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.

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

§ 171.11(a), is as follows:

Research reactor—$87,100

Test reactor—$87,100

9. In § 171.16, paragraphs (c), (d), and

(e) are revised to read as follows:

§ 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

36966 Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations

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 123

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 an independent spent fuel storage installation (ISFSI) ............................. (11)

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 ................................................................................................... 1,200

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 § 150.11 of this chapter, for which the licensee shall pay

the same fees as those for Category 1.A.(2) ........................................................................................................................... 3,400

E. Licenses or certificates for the operation of a uranium enrichment facility ............................................................................. 2,072,000

2. Source material:

A.(1) Licenses for possession and use of source material for refining uranium mill concentrates to uranium hexafluoride ..... 478,000

(2) Licenses for possession and use of source material in recovery operations such as milling, in-situ leaching, heap-leaching, ore buying stations, ion exchange facilities and in processing of ores containing source material for extraction of metals other than uranium or thorium, including licenses authorizing the possession of byproduct waste material (tailings)

from source material recovery operations, as well as licenses authorizing the possession and maintenance of a facility in

a standby mode.

Class I facilities 4 ................................................................................................................................................................... 132,000

Class II facilities 4 .................................................................................................................................................................. 111,000

Other facilities 4 ...................................................................................................................................................................... 30,800

(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, except those licenses subject to the fees in Category 2.A.(2) or Category

2.A.(4) ....................................................................................................................................................................................... 81,700

(4) 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.(2) ................................................... 12,900

B. Licenses that authorize only the possession, use and/or installation of source material for shielding .................................. 630

C. All other source material licenses ........................................................................................................................................... 11,800

3. Byproduct material:

A. Licenses of broad scope for 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 .......................................... 26,300

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 ........................................................................ 6,400

C. Licenses issued under §§ 32.72, 32.73, and/or 32.74 of this chapter authorizing the processing or manufacturing and

distribution or redistribution of radiopharmaceuticals, generators, reagent kits and/or sources and devices containing byproduct material. This category also includes the possession and use of source material for shielding authorized under

Part 40 of this chapter when included on the same license. This category does not apply to licenses issued to nonprofit

educational institutions whose processing or manufacturing is exempt under 10 CFR 171.11(a)(1). These licenses are

covered by fee Category 3D ..................................................................................................................................................... 15,600

D. Licenses and approvals issued under §§ 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 §§ 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 ....................................................................................................................................................................................... 3,800

E. Licenses for possession and use of byproduct material in sealed sources for irradiation of materials in which the source

is not removed from its shield (self-shielded units) .................................................................................................................. 3,500

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 in which the source is not exposed for irradiation purposes .................................................................... 5,800

Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations 36967

SCHEDULE OF MATERIALS ANNUAL FEES AND FEES FOR GOVERNMENT AGENCIES LICENSED BY NRC—Continued

[See footnotes at end of table]

Category of materials licenses Annual

fees 123

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 in which the source is not exposed for irradiation purposes .................................................................... 15,000

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, 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 ............................................................................................................................................... 3,300

I. Licenses issued under Subpart A of Part 32 of this chapter to distribute items containing byproduct material or quantities

of byproduct material that do not require device evaluation to persons exempt from the licensing requirements of Part 30

of this chapter, 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 ........................................................................... 4,700

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, except specific licenses

authorizing redistribution of items that have been authorized for distribution to persons generally licensed under Part 31

of this chapter ........................................................................................................................................................................... 2,100

K. Licenses issued under Subpart B of Part 31 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, except specific licenses authorizing redistribution of items that have been authorized for distribution to

persons generally licensed under Part 31 of this chapter ........................................................................................................ 1,800

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 .............................................................................. 11,300

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 ......................................................................................................... 5,000

N. Licenses that authorize services for other licensees, except:

(1) Licenses that authorize only calibration and/or leak testing services are subject to the fees specified in fee Category 3P; and

(2) Licenses that authorize waste disposal services are subject to the fees specified in fee Categories 4A, 4B, and 4C 5,300

O. Licenses for possession and use of byproduct 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 .............................................................................................................. 14,900

P. All other specific byproduct material licenses, except those in Categories 4A through 9D ................................................... 2,600

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 ............................................................... 5 N/A

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 ........................................................................... 11,500

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 ............................................................................................................................................ 8,500

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 ................................................................................. 10,100

B. Licenses for possession and use of byproduct material for field flooding tracer studies ....................................................... 5 N/A

6. Nuclear laundries:

A. Licenses for commercial collection and laundry of items contaminated with byproduct material, source material, or special nuclear material .................................................................................................................................................................. 19,200

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. This category also includes the possession

and use of source material for shielding when authorized on the same license ..................................................................... 15,500

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. This

category also includes the possession and use of source material for shielding when authorized on the same license 9 .... 28,100

C. Other licenses issued under Parts 30, 35, 40, and 70 of this chapter for human use of byproduct material, source material, and/or special nuclear material except licenses for byproduct material, source material, or special nuclear material in

sealed sources contained in teletherapy devices. This category also includes the possession and use of source material

for shielding when authorized on the same license 9 ............................................................................................................... 5,900

8. Civil defense:

A. Licenses for possession and use of byproduct material, source material, or special nuclear material for civil defense activities ........................................................................................................................................................................................ 1,200

9. Device, product, or sealed source safety evaluation:

A. Registrations issued for the safety evaluation of devices or products containing byproduct material, source material, or

special nuclear material, except reactor fuel devices, for commercial distribution .................................................................. 6,100

36968 Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations

SCHEDULE OF MATERIALS ANNUAL FEES AND FEES FOR GOVERNMENT AGENCIES LICENSED BY NRC—Continued

[See footnotes at end of table]

Category of materials licenses Annual

fees 123

B. Registrations issued for the 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 ....................................................................................................................................................... 4,400

C. Registrations issued for the safety evaluation of sealed sources containing byproduct material, source material, or special nuclear material, except reactor fuel, for commercial distribution ..................................................................................... 1,900

D. Registrations issued for the 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 .................................................................................................................................................................... 620

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 packages ............................................................................................... 6 N/A

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 10 CFR 72.210 .......................................................................................... 12 N/A

14. Byproduct, source, or special nuclear material 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 .......................................... 7 N/A

15. Import and Export licenses ............................................................................................................................................................ 8 N/A

16. Reciprocity ..................................................................................................................................................................................... 8 N/A

17. Master materials licenses of broad scope issued to Government agencies ................................................................................ 363,000

18. Department of Energy:

A. Certificates of Compliance ....................................................................................................................................................... 10 884,000

B. Uranium Mill Tailing Radiation Control Act (UMTRCA) activities ............................................................................................ 881,000

1Annual 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 § 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. 2Payment 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. 3Each fiscal year, fees for these materials licenses will be calculated and assessed in accordance with § 171.13 and will be published in the

FEDERAL REGISTER for notice and comment. 4A 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. 5There 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. 6Standardized 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. 9Separate annual fees will not be assessed for pacemaker licenses issued to medical institutions who also hold nuclear medicine licenses

under Categories 7B or 7C. 10This includes Certificates of Compliance issued to DOE for activities whose costs are not covered by the Nuclear Waste Fund. 11See 10 CFR 171.15(c). 12See 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:

§ 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

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

36970 Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations

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 highvolume 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 wellloggers, 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,

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

State Maximum fee

1991

Maximum fee

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

Fees

Selected fee categories

Teletherapy

7A

Nuclear

medicine

7C

Research &

development

3M

Services

3N

Industrial radiography

3O

Gauges

3P

Well 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

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 41,500 1,800

36972 Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations

TABLE 2—Continued

Total fees assessed to NRC small entities in 1991

Fees

Selected fee categories

Teletherapy

7A

Nuclear

medicine

7C

Research &

development

3M

Services

3N

Industrial radiography

3O

Gauges

3P

Well logging

5A

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. 4The 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

NRC fees Teletherapy

7A

Nuclear

Medicine

7C

Research &

Development

3M

Services

3N

Industrial

Radiography

3O

Gauges

3P

Well

Logging

5A

Average

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

1991 1999 Increase

(percent) 1991 1999 Increase(percent)

7A—Teletherapy .............................................................. $340 $450 32 $920 $3,200 248

7C—Nuclear Medicine ..................................................... 340 520 53 830 3,100 273

Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations 36973

TABLE 4—Continued

Comparison of NRC inspection and amendment costs in 1991 and 1999

Amendments Inspections

1991 1999 Increase

(percent) 1991 1999 Increase(percent)

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.

36974 Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules and Regulations

1An 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.

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 reexamination, 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

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:

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

fees@nrc.gov, 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]

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