**GAO-03-934R**                      Jun 30, 2003                  

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## Highlights

GAO reviewed the Nuclear Regulatory Commission's new rule on revision of fee schedules; fee recovery for FY 2003. GAO noted that (1) the rule would amend the licensing, inspection, and annual fees charged to NRC's applicants and licensees; and (2) NRC complied with applicable requirements in promulgating the rule.

##  Nuclear Regulatory Commission: Revision of Fee Schedules; Fee Recovery for FY 2003, GAO-03-934R, June 30, 2003

B-292452June 30, 2003The Honorable James M. Inhofe     Chairman     The Honorable James M. Jeffords     Ranking Minority Member     Committee on Environment and Public Works     United States SenateThe Honorable W.J. Billy Tauzin     Chairman     The Honorable John D. Dingell     Ranking Minority Member     Committee on Energy and Commerce     House of Representatives     Subject:*Nuclear Regulatory Commission: Revision of Fee Schedules; Fee Recovery for FY 2003*Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Nuclear Regulatory    Commission (NRC), entitled Revision of Fee Schedules; Fee Recovery for FY 2003 (RIN: 3150-AH14).  We received the rule on June 13, 2003.  It was published in the Federal    Register as a final rule on June 18, 2003.  68 Fed. Reg. 36714.     The final rule amends the licensing, inspection, and annual fees charged to NRC's applicants and licensees.  The final rule is necessary to implement the Omnibus Budget Reconciliation Act    of 1990, as amended, which requires that the NRC recover approximately 94 percent of its budget authority in fiscal year 2003, less the amounts appropriated from the Nuclear Waste and General    Fund.  The amount to be recovered for FY 2003 is approximately $526.3 million.     Enclosed is our assessment of the NRC's compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule.  Our review indicates that    the NRC complied with the applicable requirements.     If you have any questions about this report, please contact James W. Vickers, Assistant General Counsel, at (202) 512-8210.  The official responsible for GAO evaluation work relating to the    subject matter of the rule is Robert Robinson, Managing Director, Natural Resources and Environment.  Mr. Robinson can be reached at (202) 512-3841.                 signed     Kathleen E. Wannisky     Managing Associate General Counsel     Enclosurecc: Dennis K. Rathbun     Director, Office of Congressional Affairs     Nuclear Regulatory Commission            ENCLOSURE     ANALYSIS UNDER 5 U.S.C.  801(a)(1)(B)(i)-(iv) OF A MAJOR RULE     ISSUED BY THE     NUCLEAR REGULATORY COMMISSION     ENTITLED     "REVISION OF FEE SCHEDULES;     FEE RECOVERY FOR FY 2003"     (RIN: 3150-AH14)(i) Cost-benefit analysis     The NRC was not required to, nor did it prepare, a cost-benefit analysis of the final rule.  However, the preamble to the final rule contains an explanation of how the amount of the fees    were computed to permit the NRC to recover the necessary costs required by the Omnibus Budget Reconciliation Act.  For fiscal year 2003, the fee recovery amount is approximately $526.3    million.(ii) Agency actions relevant to the Regulatory Flexibility Act, 5 U.S.C.  603-605, 607, and 609     The entire Final Regulatory Flexibility Analysis is contained in Appendix A of the final rule.  The analysis describes the reason for the rule and the legal basis for it; describes and    estimates the number of small entities affected by the rule; discusses the recordkeeping, reporting, and other compliance requirements; and the steps taken to minimize the burden on small    entities, including a maximum fee level.(iii) Agency actions relevant to sections 202-205 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C.  1532-1535     The final rule, promulgated by an independent regulatory agency, is not subject to title II of the Unfunded Mandates Reform Act of 1995.(iv) Other relevant information or requirements under acts and executive orders     Administrative Procedure Act, 5 U.S.C.  551 etseq.     The final rule was issued using the notice and comment procedures contained in 5 U.S.C. 553.  On April 3, 2003, the NRC published a Notice of Proposed Rulemaking in the Federal    Register.  68 Fed. Reg. 16374.  NRC received 32 comments in response to the proposed rule and responds to those comments in the preamble to the final rule.     Paperwork Reduction Act, 44 U.S.C.  3501-3520     The NRC states that the final rule does not contain any information collections that are subject to review under the Paperwork Reduction Act.     Statutory authorization for the rule     The final rule was promulgated under the authority of the Omnibus Budget Reconciliation Act of 1990 (Pub. L. 101-508), as amended by the FY 2001 Energy and Water Development Appropriations Act    (Pub. L. 106-377) and the Atomic Energy Act of 1954, as amended.     Executive Order No. 12866     The final rule, promulgated by an independent regulatory agency, is not subject to the review requirements of the order.

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