This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

8885

Vol. 62, No. 39

Thursday, February 27, 1997

NUCLEAR REGULATORY

COMMISSION

10 CFR Parts 170 and 171

RIN 3150–AF 55

Revision of Fee Schedules; 100% Fee

Recovery, FY 1997

AGENCY: Nuclear Regulatory

Commission.

ACTION: Proposed rule.

SUMMARY: The Nuclear Regulatory

Commission (NRC) is proposing to

amend the licensing, inspection, and

annual fees charged to its applicants

and licensees. The proposed

amendments are necessary to

implement the Omnibus Budget

Reconciliation Act of 1990 (OBRA–90),

which mandates that the NRC recover

approximately 100 percent of its budget

authority in Fiscal Year (FY) 1997 less

amounts appropriated from the Nuclear

Waste Fund (NWF). The amount to be

recovered for FY 1997 is approximately

$462.3 million.

DATES: The comment period expires

March 31, 1997. Comments received

after this date will be considered if it is

practical to do so, but the NRC is able

to ensure only that comments received

on or before this date will be

considered. Because OBRA–90 requires

that NRC collect the FY 1997 fees by

September 30, 1997, requests for

extensions of the comment period will

not be granted.

ADDRESSES: Mail written comments to:

Secretary, U.S. Nuclear Regulatory

Commission, Washington, DC 20555–

0001, ATTN: Docketing and Services

Branch. Hand deliver comments to:

11555 Rockville Pike, Rockville,

Maryland 20852, between 7:45 am and

4:15 pm Federal workdays. (Telephone

301–415–1678). Copies of comments

received may be examined at the NRC

Public Document Room at 2120 L Street,

NW. (Lower Level), Washington, DC

20555–0001. For information on

submitting comments electronically, see

the discussion under Electronic Access

in the Supplementary Information

Section.

The agency workpapers that support

these proposed changes to 10 CFR parts

170 and 171 may be examined at the

NRC Public Document Room at 2120 L

Street, NW. (Lower Level), Washington,

DC 20555–0001.

FOR FURTHER INFORMATION CONTACT: C.

James Holloway, Jr., Office of the Chief

Financial Officer, U.S. Nuclear

Regulatory Commission, Washington,

DC 20555–0001, Telephone 301–415–

6213.

SUPPLEMENTARY INFORMATION:

I. Background.

II. Proposed Action.

III. Section-by-Section Analysis.

IV. Electronic Access.

V. Environmental Impact: Categorical

Exclusion.

VI. Paperwork Reduction Act Statement.

VII. Regulatory Analysis.

VIII. Regulatory Flexibility Analysis.

IX. Backfit Analysis.

I. Background

Public Law 101–508, the Omnibus

Budget Reconciliation Act of 1990

(OBRA–90), enacted November 5, 1990,

requires that the NRC recover

approximately 100 percent of its budget

authority, less the amount appropriated

from the Department of Energy (DOE)

administered NWF, for FYs 1991

through 1995 by assessing fees. OBRA–

90 was amended in 1993 to extend the

NRC’s 100 percent fee recovery

requirement through FY 1998.

The NRC assesses two types of fees to

recover its budget authority. First,

license and inspection fees, established

in 10 CFR part 170 under the authority

of the Independent Offices

Appropriation Act (IOAA), 31 U.S.C.

9701, recover the NRC’s costs of

providing individually identifiable

services to specific 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.

On April 12, 1996 (61 FR 16203), the

NRC published its final rule establishing

the licensing, inspection, and annual

fees necessary for the NRC to recover

approximately 100 percent of its budget

authority for FY 1996, less the

appropriation received from the Nuclear

Waste Fund. Several changes to the fees

assessed for FY 1996 were adopted by

the NRC. These changes were

highlighted in the final rule (61 FR

16203; April 12, 1996) and bear on the

approach for establishing annual fees set

forth in this proposed rule.

II. Proposed Action

The NRC is proposing to amend its

licensing, inspection, and annual fees to

recover approximately 100 percent of its

FY 1997 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 1997, the

NRC’s budget authority is $476.8

million, of which $11.0 million has

been appropriated from the NWF. In

addition, $3.5 million has been

appropriated from the General Fund for

activities related to commercial

vitrification of waste stored at the

Department of Energy Hanford,

Washington, site. The FY 1997

appropriation statute states that the $3.5

million appropriated for regulatory

reviews and other activities pertaining

to waste stored at the Hanford,

Washington, site shall be excluded from

license fee revenues notwithstanding 42

U.S.C. 2214. Therefore, NRC is required

to collect approximately $462.3 million

in FY 1997 through 10 CFR part 170

licensing and inspection fees and 10

CFR part 171 annual fees.

The total amount to be recovered for

FY 1997, and therefore the total fees, is

the same as the amount estimated for

recovery for FY 1996. However, the

distribution of the total amount to be

collected between the two types of fees

is different. The NRC estimates that

approximately $96 million would be

recovered in FY 1997 from fees assessed

under 10 CFR part 170 and other

receipts compared to $120.5 million in

FY 1996. The remaining $366.3 million

in FY 1997 would be recovered through

the 10 CFR part 171 annual fees.

Because the 10 CFR part 170 fees and

other offsetting receipts for FY 1997 is

below the estimate for FY 1996, annual

fees must increase. The lower estimate

for 10 CFR part 170 fees plus other

changes cause an 8.2 percent increase in

FY 1997 annual fees compared to FY
8886 Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules

1996. These changes are more fully

explained in Section B. The following

examples illustrate the changes in

annual fees.

FY 1996

annual fee

FY 1997

proposed

annual fee

Class of Licensees:

Power reactors ............. $2,746,000 $2,972,000

Nonpower reactors ......... 52,800 57,200

High enriched

uranium fuel

facility ......... 2,403,000 2,600,000

Low enriched

uranium fuel

facility ......... 1,179,000 1,276,000

UF6 conversion facility 597,800 647,000

Uranium mills 57,000 61,600

Typical materials

licenses:

Radiographers 13,000 14,000

Well loggers ... 7,500 8,200

Gauge users .. 1,600 1,700

Broad scope

medical ....... 21,700 23,500

Because the final FY 1997 fee rule

will be a ‘‘major’’ final action as defined

by the Small Business Regulatory

Enforcement Fairness Act of 1996, the

NRC’s fees for FY 1997 would become

effective 60 days after publication of the

final rule in the Federal Register. The

NRC will send a bill for the amount of

the annual fee upon publication of the

FY 1997 final rule to reactors and major

fuel cycle facilities. For these licensees,

payment would be due on the effective

date of the FY 1997 rule. Those

materials licensees whose license

anniversary date during FY 1997 falls

before the effective date of the final FY

1997 final rule will be billed during the

anniversary month of the license and

continue to pay annual fees at the FY

1996 rate in FY 1997. Those materials

licensees whose license anniversary

date falls on or after the effective date

of the FY 1997 final rule would be

billed at the FY 1997 revised rates

during the anniversary month of the

license and payment would be due on

the date of the invoice.

A. Amendments to 10 CFR Part 170:

Fees for Facilities, Materials, Import and

Export Licenses, and Other Regulatory

Services

The NRC proposes three amendments

to 10 CFR part 170 and one change in

practice under part 170. These

amendments would not change the

underlying basis for the regulation—that

fees be assessed to applicants, persons,

and licensees for specific identifiable

services rendered. The amendments also

comply with the guidance in the

Conference Committee Report on

OBRA–90 that fees assessed under the

Independent Offices Appropriation Act

(IOAA) recover the full cost to the NRC

of identifiable regulatory services each

applicant or licensee receives.

First, the NRC is proposing to amend

§ 170.11 of the Commission’s fee

regulations to add an exemption

provision for those amendments to

materials portable gauge licenses

referencing NUREG 1556 that would

change only the name of the Radiation

Safety Officer (RSO). This proposed

change is consistent with the proposed

regulatory approach outlined in draft

NUREG–1556, Volume 1, entitled

‘‘Consolidated Guidance About

Materials Licenses, Program-Specific

Guidance About Portable Gauge

Licenses’’ issued October 3, 1996, for

public comment. No amendment fees

would be assessed for the amendments

to portable gauge licenses because the

regulatory program proposed in the final

NUREG–1556, Volume 1, would include

commitments from the licensee

concerning RSO qualifications and if

those commitments are included in the

amendment application, then a

technical review is not required. The

NRC expects NUREG 1556 to be

finalized before the final fee rule

becomes effective. If not, then this

proposed change will not be included in

the final fee regulation.

Second, the NRC proposes that the

two professional hourly rates

established in FY 1996 in § 170.20 be

revised based on the FY 1997 budget.

These proposed rates would be based on

the FY 1997 direct FTEs and that

portion of the FY 1997 budget that

either does not constitute direct

program support (contractual services

costs) or is not recovered through the

appropriation from the NWF or the

General Fund. These rates are used to

determine the part 170 fees. The NRC is

proposing to establish a rate of $131 per

hour ($233,055 per direct FTE) for the

reactor program. This rate would be

applicable to all activities whose fees

are based on full cost under § 170.21 of

the fee regulations. A second rate of

$125 per hour ($222,517 per direct FTE)

is proposed for the nuclear materials

and nuclear waste program. This rate

would be applicable to all materials

activities whose fees are based on full

cost under § 170.31 of the fee

regulations. In the FY 1996 final fee

rule, these rates were $128 and $120

respectively.

The two rates are based on cost center

concepts adopted in FY 1995 (60 FR

32225; June 20, 1995) and used for NRC

budgeting purposes. In implementing

cost center concepts, all budgeted

resources are assigned to cost centers to

the extent they can be distinguished.

These costs include all salaries and

benefits, contract support, and travel

that support each cost center activity.

Third, the NRC proposes to adjust the

current part 170 licensing and

inspection fees in §§ 170.21 and 170.31

for applicants and licensees to reflect

both the changes in the revised hourly

rates and the results of the review

required by the Chief Financial Officers

(CFO) Act. To comply with the

requirements of the CFO Act, the NRC

has evaluated historical professional

staff hours used to process a licensing

action (new license and amendment) for

those materials licensees whose fees are

based on the average cost method (flat

fees). This review also included new

license and amendment applications for

import and export licenses.

Evaluation of the historical data

shows that the average number of

professional staff hours needed to

complete materials licensing actions

should be increased in some categories

and decreased in others to reflect the

costs incurred in completing the

licensing actions. Thus, the revised

average professional staff hours reflect

the changes in the NRC licensing review

program that have occurred since FY

1995. The proposed licensing fees are

based on the revised average

professional staff hours needed to

process the licensing actions multiplied

by the proposed nuclear materials

professional hourly rate for FY 1997 of

$125 per hour. The data for the average

number of professional staff hours

needed to complete licensing actions

were last updated in FY 1995 (60 FR

32218; June 20, 1995). For new

materials licenses, the proposed

licensing fees for FY 1997 are increased

in approximately 70 percent of the

categories, while the proposed fees for

materials amendments would increase

in over 60 percent of the categories.

In addition to the above rule changes,

the NRC is clarifying how it would

recover the costs of postimplementation reviews of changes

licensees make without prior NRC

review; for example, changes under

§§ 50.54, 50.59 and 70.32. The NRC is

announcing here that licensees would

be billed for post-implementation

review of these changes under §§ 170.21

and 170.31, beginning with the effective

date of the FY 1997 final fee rule. There

will be no change in how fees are

assessed for any pre-implementation

interactions, including any review prior

to licensee submissions, between NRC

and licensees. As in the past, any preimplementation interaction should not
Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules 8887

be fee bearing. It is noted the NRC plans

to inform reactor licensees in the near

future that their submittals under

§ 50.54 (a), (p) and (q) should not ask for

pre-implementation reviews; instead,

licensees are required to perform their

analyses, implement their changes (if

the analyses show that the changes do

not degrade plans the NRC has already

approved), and make their submittals

under the relevant subsection of § 50.54.

The NRC will then verify that the

changes are in compliance with § 50.54.

In summary, the NRC is proposing to:

(1) Revise the two 10 CFR part 170

hourly rates;

(2) Revise the licensing (application

and amendment) fees assessed under 10

CFR part 170 in order to comply with

the CFO Act’s requirement that fees be

revised to reflect the cost to the agency

of providing the service;

(3) Add a provision to the regulations

exempting from 10 CFR part 170 fees

certain amendments to materials

portable gauge licenses issued in

accordance with NUREG–1556; and

(4) Charge under part 170 for postimplementation quality assurance plan,

safeguards contingency plan and

emergency plan changes

B. Amendments to 10 CFR part 171:

Annual Fees for Reactor Operating

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 NRC

The NRC proposes six amendments to

10 CFR part 171. First, the NRC

proposes to amend § 171.13 to revise the

language to indicate that if the NRC is

unable to publish a fee rule with an

effective date within the current fiscal

year, then the NRC would continue to

assess fees on the same basis as the

previous fiscal year. The NRC believes

that it will be able to publish an

effective fee rule within a current fiscal

year as it has done since FY 1991.

However, as a contingency the NRC

believes the rule should be amended to

permit NRC to meet the requirements of

OBRA–90 in the case that unforeseen

events prevent NRC from publishing a

new rule during a fiscal year.

Second, the NRC proposes to amend

§§ 171.15 and 171.16 to revise the

annual fees for FY 1997 to recover

approximately 100 percent of the FY

1997 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

occurred, 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 the FY 1996 final rule, the NRC

stabilized the annual fees by

establishing the annual fees for all

licensees at a level of 6.5 percent below

the FY 1995 annual fees. In this FY 1997

proposed rule, the NRC intends to

follow the same method as used in FY

1996. Because the total amount

estimated for recovery through fees in

FY 1997 is identical to the amount to be

recovered in FY 1996, establishing new

baseline fees is not warranted for FY

1997. While the total amount collected

is the same, the distribution between

part 170 and 171 fees would change. In

FY 1996, 26% was estimated to be

collected from 10 CFR part 170 fees.

This decreases to 21% in FY 1997.

Therefore, to recover 100 percent of the

budget, 10 CFR part 171 annual fees

must increase in FY 1997 compared to

FY 1996. The NRC is establishing the

FY 1997 annual fees for all licensees at

a level of 8.2 percent above the FY 1996

annual fees. The 8.2 percent increase

results primarily from a reduction in the

amount of the budget recovered for 10

CFR part 170 fees, a reduction in other

offsetting adjustments, and reduction in

the number of licensees paying annual

fees. In addition, the NRC has made

adjustments to recognize that all fees

billed in a fiscal year are not collected

in that year. Table I shows the total

budget and amounts of fee billed and

collected for FY 1996 and FY 1997.

TABLE I.—CALCULATION OF THE PERCENTAGE CHANGE TO THE FY 1996

ANNUAL FEES

[Dollars in millions]

FY96 FY97

Total Budget .............. $473.3 $476.8

Less NWF .............. –11.0 –11.0

Less General Fund

(Hanford Tanks) ................ –3.5

Total Fee Base ......... 462.3 462.3

Less Part 170 Fees 114.5 96.0

Less other receipts 1 6.0 ................

Part 171 Fee Collections Required ....... 341.8 366.3

TABLE I.—CALCULATION OF THE PERCENTAGE CHANGE TO THE FY 1996

ANNUAL FEES—Continued

[Dollars in millions]

FY96 FY97

Part 171 Billing Adjustments: 2 ................ ................

Small Entity Allowance ....................... 4.9 5.0

Unpaid FY 1997 bills ................ 3.0

Payments from prior

year bills ................ ................ 2.0

Subtotal .............. 4.9 6.0

Total Part 171

Billing .............. 346.7 372.3

1 $6 million in excess collections from FY

1995 were available to reduce FY 1996 annual fees. 2These 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

1997.

As shown in Table I, the total amount

of annual fees to be billed in FY 1997

is $25.6M ($372.3–$346.7) or 7.4

percent higher than the amount that was

to be billed in annual fees in FY 1996.

The NRC notes that the reduction in the

estimates of 10 CFR part 170 fees for FY

1997 is primarily in the areas relating to

the review of applications for reactor

operating licenses and the review of

standard plant applications. In addition,

for the first time the estimates take into

consideration an allowance for bad debt

by estimating billings in the fiscal year

that are not projected to be collected in

that fiscal year and collections received

in the current fiscal year as a result of

billings from a prior fiscal year. These

adjustments to the annual fees will

allow the NRC to come closer to meeting

its obligation to recover approximately

100 percent of its budget authority

through the assessment of fees.

In addition to changes in 10 CFR part

170 fees and other adjustments, the

number of licensees to pay fees in FY

1997 has decreased compared to FY

1996. This decrease in the number of

licensees paying fees causes annual fees

to increase by an additional 0.8 percent.

For example, the Haddam Neck power

reactor has ceased operations and the

fuel has been permanently removed

from the reactor. Therefore, the utility

will pay only a partial annual fee in FY

1997. In addition, Massachusetts is

expected to become an Agreement State

in FY 1997 and approximately 425 NRC

licenses will be transferred to

Massachusetts. These licenses are

projected to pay only one half of the

annual fee.
8888 Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules

Third, an annual fee is proposed in

§ 171.16(d), fee Category 1.E., for each

certificate of compliance issued to the

United States Enrichment Corporation

(USEC) on November 26, 1996, to

operate the two gaseous diffusion plants

(GDPs) located at Paducah, Kentucky

and at Piketon, Ohio. The NRC intends

to assume regulatory jurisdiction over

the two plants from the U.S. Department

of Energy (DOE) on March 3, 1997.

Fourth, Footnote 1 of 10 CFR

171.16(d) would be amended to provide

for a waiver of annual fees for FY 1997

for those 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 licenses before October 1, 1996,

and permanently ceased licensed

activities entirely by September 30,

1996. All other licensees and approval

holders who held a license or approval

on October 1, 1996, are subject to FY

1997 annual fees. This change is being

made in recognition of the fact that

since the final FY 1996 rule was

published in April 1996, some licensees

have filed requests for termination of

their licenses or certificates with the

NRC. Other licensees have either called

or written to the NRC since the FY 1996

final rule became effective requesting

further clarification and information

concerning the annual fees assessed.

The NRC is responding to these requests

as quickly as possible. However, the

NRC was unable to respond and take

action on all such requests before the

end of the fiscal year on September 30,

1996. Similar situations existed after the

FY 1991–1995 rules were published,

and in those cases, the NRC provided an

exemption from the requirement that

the annual fee is waived only when a

license is terminated before October 1 of

each fiscal year.

Fifth, the NRC is proposing to amend

the proration provisions in § 171.17 for

reactor and materials licensees. The

reactor provision in § 171.17(a) would

be revised to reflect the changes in 10

CFR part 50 relating to the

decommissioning of power reactors

which became effective August 28, 1996

(61 FR 39278). The materials provision

would be amended to recognize that

licenses transferred to an Agreement

State as a result of a new Agreement are

effectively terminated by the NRC, for

annual fee purposes, on the date that the

Agreement with the State becomes

effective.

Sixth, § 171.19 would be amended to

update fiscal year references and to

credit the partial payments made by

certain licensees in FY 1997 either

toward their total annual fee to be

assessed or to make refunds, if

necessary. This section would also be

amended to modify the annual fee

billing schedule for materials licenses

terminated and new materials licenses

issued during the fiscal year.

The NRC will send a bill to reactors

and major fuel cycle facilities for the

amount of the annual fee upon

publication of the FY 1997 final rule.

For these licensees, payment will be due

on the effective date of FY 1997 rule.

Those materials licensees whose license

anniversary date during FY 1997 falls

before the effective date of the final FY

1997 rule will be billed during the

anniversary month of the license and

continue to pay annual fees at the FY

1996 rate in FY 1997. Those materials

licensees whose license anniversary

date falls on or after the effective date

of the final FY 1997 rule would be

billed, at the FY 1997 revised rates,

during the anniversary month of the

license and payment would be due on

the date of the invoice.

The proposed amendments to 10 CFR

part 171 do not change the underlying

basis for 10 CFR part 171; that is,

charging a class of licensees for NRC

costs attributable to that class of

licensees. The proposed changes are

consistent with the NRC’s FY 1995 final

rule indicating that, for the period FY

1996–1999, the expectation is that

annual fees would be adjusted by the

percentage change (plus or minus) to the

NRC’s budget authority adjusted for

NRC offsetting receipts and the number

of licensees paying annual fees.

III. Section-by-Section Analysis

The following analysis of those

sections that would be amended by this

proposed rule provides additional

explanatory information. All references

are to Title 10, Chapter I, U.S. Code of

Federal Regulations.

Part 170

Section 170.11 Exemptions

This section would be amended to

add a new paragraph indicating that

amendments to materials portable gauge

licenses issued in accordance with

NUREG 1556 that change only the name

of the Radiation Safety Officer (RSO)

would be exempt from amendment fees.

This change is consistent with the

recent Business Process Redesign (BPR)

initiative and NUREG–1556, Volume 1,

issued for public comment October 3,

1996 (61 FR 51729). No amendment fees

would be assessed for the amendments

issued in accordance with NUREG 1556

to portable gauge licenses because the

regulatory program would include

commitments from the licensee

concerning RSO qualifications and if

those commitments are included in the

amendment application then there

would be no technical review

conducted by the NRC. The NRC

expects NUREG 1556 to be finalized

before the final fee rule becomes

effective. If not, then this proposed

change will not be included in the final

fee regulation.

Section 170.20 Average Cost per

Professional Staff-Hour

This section would be amended to

establish two professional staff-hour

rates based on FY 1997 budgeted costs—

one for the reactor program and one for

the nuclear material and nuclear waste

program. Accordingly, the NRC reactor

direct staff-hour rate for FY 1997 for all

activities whose fees are based on full

cost under § 170.21 would be $131 per

hour, or $233,055 per direct FTE. The

NRC nuclear material and nuclear waste

direct staff-hour rate for all materials

activities whose fees are based on full

cost under § 170.31 would be $125 per

hour, or $222,517 per direct FTE. The

rates are based on the FY 1997 direct

FTEs and NRC budgeted costs that are

not recovered through the appropriation

from the NWF or the General Fund. The

NRC has continued the use of cost

center concepts established in FY 1995

in allocating certain costs to the reactor

and materials programs in order to more

closely align budgeted costs with

specific classes of licensees. The

method used to determine the two

professional hourly rates is as follows:

1. Direct program FTE levels are

identified for both the reactor program

and the nuclear material and waste

program.

2. 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 rate because

the costs for direct contract support are

charged directly through the various

categories of fees.

3. All other direct program costs (i.e.,

Salaries and Benefits, Travel) represent

‘‘in-house’’ costs and are to be allocated

by dividing them uniformly by the total

number of direct FTEs for the program.

In addition, salaries and benefits plus

contracts for general and administrative

support are allocated to each program

based on that program’s salaries and

benefits. This method results in the

following costs which are included in

the hourly rates.
Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules 8889

TABLE II.—FY 1997 BUDGET AUTHORITY TO BE INCLUDED IN HOURLY RATES

[Dollars in millions]

Reactor programMaterials

program

Salary and Benefits ...................................................................................................................................................... $155.3 $48.4

Allocated Agency Management and Support .............................................................................................................. 42.5 13.2

Subtotal ............................................................................................................................................................. 197.8 61.6

General and Administrative Support (G&A):

Program Travel and Other Support ...................................................................................................................... 9.6 2.5

Allocated Agency Management and Support ....................................................................................................... 72.1 22.4

Subtotal ............................................................................................................................................................. 81.7 24.9

Less offsetting receipts ................................................................................................................................................ .1

Total Budget Included in Hourly Rate ............................................................................................................... 279.4 86.5

Program Direct FTEs ................................................................................................................................................... 1,196.9 388.7

Rate per Direct FTE ..................................................................................................................................................... 233,055 222,517

Professional Hourly Rate ............................................................................................................................................. 131 125

Dividing the $279.4 million budget for

the reactor program by the number of

reactor program direct FTEs (1196.9)

results in a rate for the reactor program

of $233,055 per FTE for FY 1997.

Dividing the $86.5 million budget for

the nuclear materials and nuclear waste

program by the number of program

direct FTEs (388.7) results in a rate of

$222,517 per FTE for FY 1997. The

Direct FTE Hourly Rate for the reactor

program would be $131 per hour

(rounded to the nearest whole dollar).

This rate is calculated by dividing the

cost per direct FTE ($233,055) by the

number of productive hours in one year

(1776 hours) as indicated in the revised

OMB Circular A–76, ‘‘Performance of

Commercial Activities.’’ The Direct FTE

Hourly Rate for the materials program

would be $125 per hour (rounded to the

nearest whole dollar). This rate is

calculated by dividing the cost per

direct FTE ($222,517) by the number of

productive hours in one year (1776

hours). The FY 1997 rate is slightly

higher than the FY 1996 rate due in part

to the Federal pay raise given to all

Federal employees in January 1996.

Section 170.21 Schedule of Fees for

Production and Utilization Facilities,

Review of Standard Reference Design

Approvals, Special Projects, Inspections

and Import and Export Licenses

The NRC is proposing to revise the

licensing and inspection fees in this

section, which are based on full-cost

recovery, to reflect FY 1997 budgeted

costs and to recover costs incurred by

the NRC in providing licensing and

inspection services to identifiable

recipients. The fees assessed for services

provided under the schedule are based

on the professional hourly rate, as

shown in § 170.20, for the reactor

program 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 will be assessed at the

FY 1997 hourly rate for the reactor

program, as shown in § 170.20. The fees

in § 170.21 for the review of import and

export licensing, facility Category K,

would be adjusted for FY 1997 to reflect

both the increase in the hourly rate and

the revised average professional staff

hours needed to process certain types of

licensing actions.

For those applications currently on

file and pending completion, footnote 2

of § 170.21 would be revised to provide

that professional hours expended up to

the effective date of the final rule will

be assessed at the professional rates in

effect at the time the service was

rendered. For topical report applications

currently on file that are still pending

completion of the review, and for which

review costs have reached the

applicable fee ceiling established by the

July 2, 1990 rule, the costs incurred after

any applicable ceiling was reached

through August 8, 1991, will not be

billed to the applicant. Any professional

hours expended for the review of topical

report applications, amendments,

revisions, or supplements to a topical

report on or after August 9, 1991, are

assessed at the applicable rate

established by § 170.20.

Section 170.31 Schedule of Fees for

Materials Licenses and Other Regulatory

Services, Including Inspections and

Import and Export Licenses

The licensing and inspection fees in

this section, which are based on fullcost recovery, would be modified to

recover the FY 1997 costs incurred by

the NRC in providing licensing and

inspection services to identifiable

recipients. The fees assessed for services

provided under the schedule would be

based on both the professional hourly

rate as shown in § 170.20 for the

materials program and any direct

program support (contractual services)

costs expended by the NRC. Licensing

fees based on the average time to review

an application (‘‘flat’’ fees) would be

adjusted to reflect both the revised

average professional staff hours needed

to process a licensing action (new

license and amendment) and the

increase in the professional hourly rate

from $120 per hour in FY 1996 to $125

per hour in FY 1997.

As previously indicated, the CFO Act

requires that the NRC conduct a

biennial review of fees and other

charges imposed by the agency for its

services and revise those charges to

reflect the costs incurred in providing

the services. Consistent with the CFO

Act requirement, the NRC has

completed its most recent review of

license fees assessed by the agency. The

review focused on the flat fees that are

charged to nuclear materials users for

licensing actions (new licenses and

amendments). The full cost license and

inspection fees (e.g., for fuel cycle

facilities) and annual fees were not

included in this biennial review because

the hourly rate for full cost fees and the

annual fees are reviewed and updated

annually in order to recover 100 percent

of the NRC budget authority.

To determine the licensing flat fees

for materials licensees and applicants,

the NRC uses historical data to

determine the average number of

professional hours required to perform a

licensing action for each license

category. These average hours are

multiplied by the proposed materials

program professional hourly rate of

$125 per hour for FY 1997. The review

indicated that the NRC needed to
8890 Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules

modify the average number of hours on

which the current licensing flat fees are

based in order to recover the cost of

providing licensing services. The

average number of hours required for

licensing actions was last reviewed and

modified in 1995 (60 FR 32218; June 20,

1995). Thus the revised hours used to

determine the proposed fees for FY 1997

reflect the changes in the licensing

program that have occurred since that

time. For new licenses, the proposed

fees for FY 1997 are increased in

approximately 70 percent of the fee

categories, while the proposed fees for

amendments have increased in over 60

percent of the fee categories.

The ‘‘flat’’ fees in § 170.31 for the

review of import and export licensing

applications have increased from FY

1996 as a result of the increase in the

hourly rate and the results of the

biennial review. The proposed licensing

‘‘flat’’ fees are applicable to fee

categories 1.C and 1.D; 2.B and 2.C; 3.A

through 3.P; 4.B through 9.D, 10.B, 15.A

through 15.E and 16. Applications filed

on or after the effective date of the final

rule would be subject to the fees in this

proposed rule.

The amounts of the materials

licensing ‘‘flat’’ fees were rounded off so

that the amounts would be de minimis

and the resulting flat fee would be

convenient to the user. Fees that are

greater than $1,000 but are less than

$100,000 are rounded to the nearest

$100. Fees that are greater than

$100,000 are rounded to the nearest

$1,000. Fees under $1,000 are rounded

to the nearest $10.

For those licensing, inspection, and

review fees that are based on full-cost

recovery (cost for professional staff

hours plus any contractual services), the

materials program hourly rate of $125,

as shown in § 170.20, would apply to

those professional staff hours expended

on or after the effective date of the final

rule.

In addition to the above rule changes,

the NRC is clarifying how it would

recover the costs of postimplementation reviews of changes

licensees make without prior NRC

review; for example, changes under

§§ 50.54, 50.59 and 70.32. The NRC is

announcing here that licensees would

be billed for post-implementation

reviews of these changes under

§§ 170.21 and 170.31, beginning with

the effective date of the FY 1997 final

fee rule. There will be no change in how

fees are assessed for any preimplementation interactions including

any review prior to licensee

submissions, between the NRC and

licensees. As in the past, any preimplementation interaction will not be

fee-bearing. It is noted that the NRC

plans to inform reactor licensees in the

near future that their submittals under

§ 50.54(a), (p) and (q) should not ask for

pre-implementation reviews; instead,

licensees are required to perform their

analyses, implement their changes (if

the analyses show that the changes do

not degrade plans the NRC has already

approved), and make their submittals

under the relevant subsection of § 50.54.

The NRC will then verify that the

changes are in compliance with § 50.54.

Part 171

Section 171.13 Notice

The language in this section would be

revised to indicate that in the unlikely

event the NRC is unable to publish a fee

rule with an effective date within the

current fiscal year, then the NRC would

continue to assess fees at the same rates

as the previous fiscal year. The NRC

believes that it will be able to publish

an effective fee rule within a current

fiscal year as it has done since FY 1991

when 100 percent fee recovery was

initiated. However, the possibility exists

that the NRC might be unable to

establish fees for a current fiscal year

through the notice and comment

process. Therefore, as a contingency

plan for meeting the requirement of

OBRA–90, the NRC is proposing to

amend § 171.13 to indicate that if the

NRC is unable to promulgate a final fee

rule within a current fiscal year, then

fees would continue to be assessed at

the same rates as the previous fiscal

year. The NRC will continue to work

diligently to publish the fee rules at the

earliest possible time during the fiscal

year.

Section 171.15 Annual Fee: Reactor

Operating Licenses

The annual fees in this section would

be revised as described below.

Paragraphs (a), (b), (c) (1), (c)(2), (e), and

(f) would be revised to comply with the

requirement of OBRA–90 that the NRC

recover approximately 100 percent of its

budget for FY 1997.

Paragraph (b) would be revised in its

entirety to establish the FY 1997 annual

fee for operating power reactors and to

change fiscal year references from FY

1996 to FY 1997. The fees would be

established by increasing FY 1996

annual fees (prior to rounding) by 8.2

percent. In the FY 1995 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 and

adjustments based on changes in 10 CFR

part 170 fees as well as in the number

of licensees paying the fees. The first

adjustment to the annual fees using this

method occurred in FY 1996 when all

annual fees were decreased 6.5 percent

below the FY 1995 annual fees. The

activities comprising the base FY 1995

annual fee and the FY 1995 additional

charge (surcharge) are listed in

paragraphs (b) and (c) for convenience

purposes.

With respect to Big Rock Point, a

smaller, older reactor, the NRC proposes

to grant a partial exemption from the FY

1997 annual fees similar to FY 1996

based on a request filed with the NRC

in accordance with § 171.11.

Each operating power reactor, except

Big Rock Point, would pay an annual fee

of $2,972,000 in FY 1997.

Paragraph (e) would be revised to

show the amount of the FY 1997 annual

fee for nonpower (test and research)

reactors. In FY 1997, the proposed fee

of $57,200 is 8.2 percent above the FY

1996 level. 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).

Paragraph (f) would be revised to

change fiscal year date references.

Section 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

Section 171.16(c) covers the fees

assessed for those licensees that can

qualify as small entities under NRC size

standards. The NRC will continue to

assess two fees for licensees that qualify

as small entities under the NRC’s size

standards. In general, licensees with

gross annual receipts of $350,000 to $5

million pay a maximum fee of $1,800.

A second or lower-tier small entity fee

of $400 is in place for small entities

with gross annual receipts of less than

$350,000 and small governmental

jurisdictions with a population of less

than 20,000. No change in the amount

of the small entity fees is being

proposed because the small entity fees

are not based on the budget but are

established at a level to reduce the

impact of fees on small entities. The

small entity fees are shown in the

proposed rule for convenience. 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.

Section 171.16(d) would be revised to

establish the FY 1997 annual fees for

materials licensees, including
Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules 8891

Government agencies, licensed by the

NRC. These fees were determined by

increasing the FY 1996 annual fees

(prior to rounding) by 8.2 percent.

In addition, an annual fee is proposed

in § 171.16(d), fee Category 1.E., for each

Certificate of Compliance issued to the

USEC on November 26, 1996, to operate

the two gaseous diffusion plants (GDPs)

located at Paducah, Kentucky, and at

Piketon, Ohio. The NRC announced its

intent to issue the compliance

certificates to USEC on September 19,

1996 (61 FR 49360). The NRC intends to

assume regulatory jurisdiction over the

two plants from DOE on March 3, 1997.

Because the two plants have been

certified in FY 1997, the NRC is

proposing to establish an annual fee of

$2,600,000 for each of these two

facilities. The NRC methodology for

determining annual fees for major fuel

facilities was explained in the FY 1995

final fee rule published in the Federal

Register on June 20, 1995 (60 FR 32234).

As indicated in the Federal Register, the

methodology can be applied to

determine annual fees for new licenses

or certificates. The NRC has applied the

methodology to the USEC facilities and

has concluded that the relative weighted

safety and safeguards factors for these

facilities is similar to a high enriched

uranium facility. Therefore, the NRC is

proposing to establish the annual fee for

each USEC uranium enrichment facility

at $2,600,000, the same as that for a high

enrichment facility (fee category

1.A.(1)(a)). Because the certifications

would be in effect for the last six

months of FY 1997, the NRC would

assess one-half of the annual fee or

$1,300,000 to USEC for each certificate

for the last half of FY 1997.

The amount or range of the FY 1997

annual fees for all materials licensees is

summarized as follows:

MATERIALS LICENSES ANNUAL FEE

RANGES

Category of license Annual fees

Part 70—High enriched

fuel facility.

$2,600,000.

Part 70—Low enriched

fuel facility.

1,276,000.

Part 40—UF6 conversion facility.647,000.

Part 40—Uranium recovery facilities.22,300 to 61,600.

Part 30—Byproduct Material Licenses.490 to 23,5001.1

Part 71—Transportion

of Radioactive Material.

1,000 to 78,700.

MATERIALS LICENSES ANNUAL FEE

RANGES—Continued

Category of license Annual fees

Part 72—Independent

Storage of Spent Nuclear Fuel.

282,000.

1Excludes the annual fee for a few military

‘‘master’’ materials licenses of broad-scope issued to Government agencies, which is

$420,000.

Footnote 1 of 10 CFR 171.16(d) would

be 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,

1996, and permanently ceased licensed

activities entirely by September 30,

1996. All other licensees and approval

holders who held a license or approval

on October 1, 1996, are subject to the FY

1997 annual fees.

Section 171.17 Proration

The NRC is proposing to amend the

proration provisions in § 171.17 for

reactor and materials licenses.

Paragraph (a) would be amended to

reflect the changes in 10 CFR part 50

relating to the decommissioning of

power reactors which became effective

August 28, 1996 (61 FR 39278). Reactor

annual fees would be prorated based on

the requirements of § 50.82(a)(2) that

upon docketing of the certifications for

permanent cessation of operations and

permanent removal of fuel from the

reactor vessel or when a final legally

effective order to permanently cease

operations has come into effect, the 10

CFR Part 50 license no longer authorizes

operation of the reactor or emplacement

or retention of fuel into the reactor

vessel. Previously the proration of

reactor annual fees was based on the

date of issuance of the possession only

license (POL).

Paragraph (b) would be amended to

recognize that materials licenses

transferred to a new Agreement State are

considered terminated by the NRC for

annual fee purposes, on the date that the

Agreement with the State becomes

effective. The State of Massachusetts is

expected to become an Agreement State

in FY 1997 and approximately 425

licenses will be transferred to the State

on the effective date of the Agreement.

The NRC would assess the annual fees

for those licenses being transferred to

the State of Massachusetts using the

current proration provisions of

§ 171.17(b) whereby the licenses would

be considered terminated on the

effective date of the Agreement with

Massachusetts.

New licenses issued during FY 1997

would receive 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 through

March 31 of the FY will be assessed

one-half the annual fee in effect on the

anniversary date of the license. New

materials licenses issued on or after

April 1, 1997, will not be assessed an

annual fee for FY 1997. Thereafter, the

full annual fee is due and payable each

subsequent fiscal year on the

anniversary date of the license.

Beginning June 11, 1996, (the effective

date of the FY 1996 final rule), affected

materials licensees will be subject to the

annual fee in effect on the anniversary

date of the license. Affected licensees

who are not sure of the anniversary date

of their materials license should check

the original issue date of the license.

Section 171.19 Payment

Paragraph (b) would be revised to give

credit for partial payments made by

certain licensees in FY 1997 toward

their FY 1997 annual fees. The NRC

anticipates that the first, second, and

third quarterly payments for FY 1997

will have been made by operating power

reactor licensees and some large

materials licensees before the final rule

becomes effective. Therefore, the NRC

would credit payments received for

those quarterly annual fee assessments

toward the total annual fee to be

assessed. The NRC would adjust the

fourth quarterly bill 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.

Paragraph (c) would be revised to

update fiscal year references. Paragraph

(d) would be revised to modify the

billing schedule for terminated

materials licenses and new materials

licenses. Licenses subject to the annual

fee that are terminated during the fiscal

year but prior to the anniversary month

of the license will be billed upon

termination for the fee in effect at the

time of the billing. New 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.

As in FY 1996, the NRC would

continue to bill annual fees for most
8892 Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules

materials licenses on the anniversary

date of the license (licensees whose

annual fees are $100,000 or more will

continue to be assessed quarterly). The

annual fee assessed will be the fee in

effect on the license anniversary date.

This proposed rule applies to those

materials licenses in the following fee

categories: 1.C. and 1.D.; 2.A.(2) through

2.C.; 3.A. through 3.P.; 4.A. through

9.D., and 10.B. 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 would 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 1997

before the effective date of the FY 1997

final rule will be billed during the

anniversary month of the license and

continue to pay annual fees at the FY

1996 rate in FY 1997. Those materials

licensees with license anniversary dates

falling on or after the effective date of

the FY 1997 final rule would be billed,

at the FY 1997 revised rates, during

their anniversary month of their license

and payment would be due on the date

of the invoice.

During the past six years many

licensees have indicated that, although

they held a valid NRC license

authorizing the possession and use of

special nuclear, source, or byproduct

material, they were either not using the

material to conduct operations or had

disposed of the material and no longer

needed the license. In response, the

NRC has consistently stated that annual

fees are assessed based on whether a

licensee holds a valid NRC license that

authorizes possession and use of

radioactive material. Whether or not a

licensee is actually conducting

operations using the material is a matter

of licensee discretion. The NRC cannot

control whether a licensee elects to

possess and use radioactive material

once it receives a license from the NRC.

Therefore, the NRC reemphasizes that

the annual fee will be assessed based on

whether a licensee holds a valid NRC

license that authorizes possession and

use of radioactive material. To remove

any uncertainty, the NRC issued minor

clarifying amendments to 10 CFR

171.16, footnotes 1 and 7 on July 20,

1993 (58 FR 38700).

IV. Electronic Access

Comments on the proposed rule may

be submitted through the Internet by

addressing electronic mail to

INTERNET:SECY@NRC.GOV.

Comments may also be submitted

electronically, in either ASCII text or

WordPerfect format (version 5.1 or

later), by calling the NRC Electronic

Rulemaking Bulletin Board (BBS) on

FEDWORLD.

The BBS is an electronic information

system operated by the National

Technical Information Service of the

Department of Commerce. The purpose

of this BBS is to facilitate public

participation in the NRC regulatory

process, particularly rulemakings. This

proposed rulemaking is available for

review and comment on the BBS. The

BBS may be accessed using a personal

computer, a modem, and one of the

commonly available communications

software packages, or directly via the

Internet.

The NRC rulemaking bulletin board

(rulemaking subsystem) on FEDWORLD

can be accessed directly by using a

personal computer and modem, and

dialing the toll free number 1–800–303–

9672.

Communication software parameters

should be set as follows: parity to none,

data bits to 8, and stop bits to 1 (N,8,1).

Using ANSI or VT–100 terminal

emulation, the NRC rulemaking

subsystem can then be accessed by

selecting the ‘‘Rules Menu’’ option from

the ‘‘NRC Main Menu.’’ For further

information about options available for

NRC at FEDWORLD consult the ‘‘Help/

Information Center’’ from the ‘‘NRC

Main Menu.’’ Users will find the

‘‘FEDWORLD Online User’s Guides’’

particularly helpful.

The NRC subsystem on FEDWORLD

also can be accessed by a direct dial

phone number for the main FEDWORLD

BBS at 703–321–3339, or by using

Telnet via Internet: fedworld.gov. Using

the 703 number to contact FEDWORLD,

the NRC subsystem will be accessed

from the main FEDWORLD menu by

selecting the ‘‘Regulatory, Government

Administration and State Systems,’’

then selecting ‘‘Regulatory Information

Mall.’’ At that point, a menu will be

displayed that has the option ‘‘U.S.

Nuclear Regulatory Commission’’ that

will take you to the NRC Online main

menu. The NRC Online area also can be

accessed directly by typing ‘‘/go nrc’’ at

a FEDWORLD command line. If you

access NRC from FEDWORLD’s main

menu, you may return to FEDWORLD

by selecting the ‘‘Return to

FEDWORLD’’ option from the NRC

Online Main Menu. However, if you

access NRC at FEDWORLD by using

NRC’s toll-free number, you will have

full access to all NRC systems, but you

will not have access to the main

FEDWORLD system.

If you contact FEDWORLD using

Telnet, you will see the NRC area and

menus, including the ‘‘Rules Menu.’’

Although you will be able to download

documents and leave messages, you will

not be able to write comments or upload

files. If you contact FEDWORLD using

File Transfer Program (FTP), all files can

be accessed and downloaded, but

uploads are not allowed, and all you

will see is a list of files without

descriptions (normal Gopher look). An

index file listing all files within a

subdirectory, with descriptions, is

available. There is a 15-minute time

limit for FTP access.

Although FEDWORLD can be

accessed through the World Wide Web

as well, like FTP, that mode only

provides access for downloading files

and does not display the NRC ‘‘Rules

Menu.’’

For more information on NRC bulletin

boards call Mr. Arthur Davis, Systems

Integration and Development Branch,

U.S. Nuclear Regulatory Commission,

Washington, DC 20555, telephone 301–

415–5780; e-mail AXD3@nrc.gov.

V. Environmental Impact: Categorical

Exclusion

The NRC has determined that this

proposed rule is the type of action

described in categorical exclusion 10

CFR 51.22(c)(1). Therefore, neither an

environmental impact statement nor an

environmental impact assessment has

been prepared for the proposed

regulation. By its very nature, this

regulatory action does not affect the

environment, and therefore, no

environmental justice issues are raised.

VI. Paperwork Reduction Act

Statement

This proposed rule 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

proposed rule was developed pursuant

to Title V of the Independent Offices

Appropriation Act of 1952 (IOAA) (31

U.S.C. 9701) and the Commission’s fee

guidelines. When developing these

guidelines the Commission took into

account guidance provided by the U.S.

Supreme Court on March 4, 1974, in its

decision of 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
Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules 8893

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). These decisions of

the Courts enabled the Commission to

develop fee guidelines that are still used

for cost recovery and fee development

purposes.

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). The 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

Public Law 101–508, the Omnibus

Budget Reconciliation Act of 1990

(OBRA–90) which required that for FYs

1991 through 1995, approximately 100

percent of the NRC budget authority be

recovered through the assessment of

fees. OBRA–90 was amended in 1993 to

extend the 100 percent fee recovery

requirement for NRC through FY 1998.

To accomplish this statutory

requirement, the NRC, in accordance

with § 171.13, is publishing the

proposed amount of the FY 1997 annual

fees for operating 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 and the

Conference Committee Report

specifically state that—

(1) The annual fees be based on the

Commission’s FY 1997 budget of $476.8

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 and the

general fund related to commercial

vitrification of waste at the Department

of Energy Hanford, Washington site.

(2) The annual fees shall, to the

maximum extent practicable, have a

reasonable relationship to the cost of

regulatory services provided by the

Commission; and

(3) The annual fees be assessed to

those licensees the Commission, in its

discretion, determines can fairly,

equitably, and practicably contribute to

their payment.

10 CFR Part 171, which established

annual fees for operating power reactors

effective October 20, 1986 (51 FR 33224;

September 18, 1986), was challenged

and upheld in its entirety in Florida

Power and Light Company v. United

States, 846 F.2d 765 (D.C. Cir. 1988),

cert. denied, 490 U.S. 1045 (1989).

The NRC’s FY 1991 annual fee rule

was largely 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 proposed rule establishes the

schedules of fees that are necessary to

implement the Congressional mandate

for FY 1997. The proposed rule results

in an increase in the annual fees

charged to all licensees, and holders of

certificates, registrations, and approvals.

The Regulatory Flexibility Analysis,

prepared in accordance with 5 U.S.C.

604, is included as Appendix A to this

proposed rule. The Small Business

Regulatory Enforcement Fairness Act of

1996 (SBREFA) was signed into law on

March 29, 1996. The SBREFA requires

all Federal agencies to prepare a written

compliance guide for each rule for

which the agency is required by 5 U.S.C.

604 to prepare a regulatory flexibility

analysis. Therefore, in compliance with

the law, Attachment 1 to the Regulatory

Flexibility Analysis (Appendix A to this

document) is the small entity

compliance guide for FY 1997.

IX. Backfit Analysis

The NRC has determined that the

backfit rule, 10 CFR 50.109, does not

apply to this proposed rule and that a

backfit analysis is not required for this

proposed rule. The backfit analysis is

not required because these proposed

amendments do not require the

modification of or additions to systems,

structures, components, or the design of

a facility or the design approval or

manufacturing license for a facility or

the procedures or organization required

to design, construct or operate a facility.

List of Subjects

10 CFR Part 170

Byproduct material, Import and

export licenses, Intergovernmental

relations, Non-payment penalties,

Nuclear materials, Nuclear power plants

and reactors, Source material, Special

nuclear material.

10 CFR Part 171

Annual charges, Byproduct material,

Holders of certificates, registrations,

approvals, Intergovernmental relations,

Non-payment penalties, Nuclear

materials, Nuclear power plants and

reactors, Source material, Special

nuclear material.

For the reasons set out in the

preamble and under the authority of the

Atomic Energy Act of 1954, as amended,

and 5 U.S.C. 553, the NRC is proposing

to adopt the following amendments to

10 CFR parts 170 and 171.

PART 170—FEES FOR FACILITIES,

MATERIALS, IMPORT AND EXPORT

LICENSES, AND OTHER

REGULATORY SERVICES UNDER THE

ATOMIC ENERGY ACT OF 1954, AS

AMENDED

1. The authority citation for part 170

continues to read as follows:

Authority: 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 § 170.11, paragraph (a)(11) is

added to read as follows:

§ 170.11 Exemptions.

(a) * * *

(11) Materials portable gauge licenses

issued in accordance with NUREG–1556

that are amended to change only the

name of the Radiation Safety Officer.

This exemption does not apply to those

materials portable gauge licenses that
8894 Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules

also authorize possession and use of

nuclear materials for other activities.

* * * * *

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,

part 55 requalification and replacement

examinations and tests, other required

reviews, approvals, and inspections

under §§ 170.21 and 170.31 that are

based upon the full costs for the review

or inspection will be calculated using

the following applicable professional

staff-hour rates:

Reactor Program (§ 170.21 Activities).$131 per

hour.

Nuclear Materials and Nuclear

Waste Program (§ 170.31 Activities).

125 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:

§ 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 pursuant to 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 ............................................................................................................................................... $8,100

Amendment .................................................................................................................................................................... $8,100

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

Amendment ............................................................................................................................................................. $5,000

3. Application for export of components requiring foreign government assurances only:

Application—new license ........................................................................................................................................ $2,900

Amendment ............................................................................................................................................................. $2,900

4. Application for export of facility components and equipment not requiring Commissioner review, Executive Branch

review, or foreign government assurances:

Application—new license ........................................................................................................................................ $1,300

Amendment ............................................................................................................................................................. $1,300

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 ............................................................................................................................................................. $190

1Fees will not be charged for orders issued by the Commission pursuant to § 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 now or hereafter in

effect 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. In no event will the total review costs be less than twice the hourly rate shown 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. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules 8895

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:

License, Renewal, Amendment ............................................................................................................................................. Full Cost.

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

B. Licenses for receipt and storage of spent fuel at an independent spent fuel storage installation (ISFSI):

License, Renewal, Amendment ............................................................................................................................................. Full Cost.

Inspections ............................................................................................................................................................................. 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—New license ....................................................................................................................................................... $580.

Amendment ............................................................................................................................................................................ $390.

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—New license ....................................................................................................................................................... $780.

Amendment ............................................................................................................................................................................ $300.

E. Licenses or certificates for construction and operation of a uranium enrichment facility

Application .............................................................................................................................................................................. $125,000.

License, Renewal, Amendment ............................................................................................................................................. Full Cost.

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

2. Source material:

A. (1) Licenses for possession and use of source material in recovery operations such as milling, in-situ leaching, heapleaching, 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:

License, Renewal, Amendment ............................................................................................................................................. Full Cost.

Inspections ............................................................................................................................................................................. 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)

License, renewal, amendment ............................................................................................................................................... Full Cost.

Inspections ............................................................................................................................................................................. 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)

License, renewal, amendment ............................................................................................................................................... Full Cost.

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

B. Licenses which authorize the possession, use and/or installation of source material for shielding:

Application—New license ....................................................................................................................................................... $130.

Amendment ............................................................................................................................................................................ $290.

C. All other source material licenses:

Application—New license ....................................................................................................................................................... $3,700.

Amendment ............................................................................................................................................................................ $580.

3. Byproduct material:

A. Licenses of broad scope for possession and use of byproduct material issued pursuant to parts 30 and 33 of this chapter

for processing or manufacturing of items containing byproduct material for commercial distribution:

Application—New license ....................................................................................................................................................... $3,900.

Amendment ............................................................................................................................................................................ $550.

B. Other licenses for possession and use of byproduct material issued pursuant to Part 30 of this chapter for processing or

manufacturing of items containing byproduct material for commercial distribution:

Application—New license ....................................................................................................................................................... $1,600.

Amendment ............................................................................................................................................................................ $580.

C. Licenses issued pursuant to §§ 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 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—New license ....................................................................................................................................................... $7,100.

Amendment ............................................................................................................................................................................ $650.

D. Licenses and approvals issued pursuant to §§ 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 pursuant to §§ 32.72, 32.73, and/or 32.74 to nonprofit educational institutions whose processing or manufacturing is exempt under 10 CFR 170.11(a)(4)

Application—New license ....................................................................................................................................................... $2,000.

Amendment ............................................................................................................................................................................ $440.

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—New license ....................................................................................................................................................... $1,100.

Amendment ............................................................................................................................................................................ $390.
8896 Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules

SCHEDULE OF MATERIALS FEES—Continued

[See footnotes at end of table]

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

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—New license ....................................................................................................................................................... $2,000.

Amendment ............................................................................................................................................................................ $450.

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—New license ....................................................................................................................................................... $4,700.

Amendment ............................................................................................................................................................................ $760.

H. Licenses issued pursuant to 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:

Application—New license ....................................................................................................................................................... $2,800.

Amendment ............................................................................................................................................................................ $1,000.

I. Licenses issued pursuant to 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:

Application—New license ....................................................................................................................................................... $4,500.

Amendment ............................................................................................................................................................................ $1,100.

J. Licenses issued pursuant to 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:

Application—New license ....................................................................................................................................................... $1,800.

Amendment ............................................................................................................................................................................ $310.

K. Licenses issued pursuant to 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, except specific licenses authorizing redistribution of items that have been authorized for distribution to persons generally licensed under Part 31 of this chapter:

Application—New license ....................................................................................................................................................... $1,000.

Amendment ............................................................................................................................................................................ $350.

L. Licenses of broad scope for possession and use of byproduct material issued pursuant to parts 30 and 33 of this chapter

for research and development that do not authorize commercial distribution:

Application—New license ....................................................................................................................................................... $5,600.

Amendment ............................................................................................................................................................................ $780.

M. Other licenses for possession and use of byproduct material issued pursuant to part 30 of this chapter for research and

development that do not authorize commercial distribution:

Application—New license ....................................................................................................................................................... $1,900.

Amendment ............................................................................................................................................................................ $640.

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—New license ............................................................................................................................................... $2,100.

Amendment ..................................................................................................................................................................... $510.

O. Licenses for possession and use of byproduct material issued pursuant to part 34 of this chapter for industrial radiography operations:

Application—New license ....................................................................................................................................................... $4,400.

Amendment ............................................................................................................................................................................ $700.

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

Application—New license . .................................................................................................................................................... $750.

Amendment . .......................................................................................................................................................................... $350.

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:

License, renewal, amendment.

Full Cost Inspections .............................................................................................................................................................. 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—New license ....................................................................................................................................................... $2,600.

Amendment ............................................................................................................................................................................ $540.
Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules 8897

SCHEDULE OF MATERIALS FEES—Continued

[See footnotes at end of table]

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

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—New license ....................................................................................................................................................... $2,300.

Amendment ............................................................................................................................................................................ $230.

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—New license ....................................................................................................................................................... $3,600.

Amendment ............................................................................................................................................................................ $850.

B. Licenses for possession and use of byproduct material for field flooding tracer studies:

License, renewal, amendment ............................................................................................................................................... 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—New license ....................................................................................................................................................... $6,600.

Amendment ............................................................................................................................................................................ $1,000.

7. Medical licenses:

A. Licenses issued pursuant to 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—New license ....................................................................................................................................................... $3,600.

Amendment ............................................................................................................................................................................ $400.

B. Licenses of broad scope issued to medical institutions or two or more physicians pursuant to 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—New license ....................................................................................................................................................... $3,900.

Amendment ............................................................................................................................................................................ $740.

C. Other licenses issued pursuant to parts 30, 35, 40, and 70 of this chapter for human use of byproduct material, source

material, and/or special nuclear material, except licenses for byproduct material, source material, or special nuclear material in sealed sources contained in teletherapy devices:

Application—New license ....................................................................................................................................................... $1,800.

Amendment ............................................................................................................................................................................ $460.

8. Civil defense:

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

Application—New license ....................................................................................................................................................... $590.

Amendment ............................................................................................................................................................................ $410.

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 ....................................................................................................................................................... $3,700.

Amendment—each device ..................................................................................................................................................... $610.

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 ....................................................................................................................................................... $2,200.

Amendment—each device ..................................................................................................................................................... $1,100.

C. Safety evaluation of sealed sources containing byproduct material, source material, or special nuclear material, except

reactor fuel, for commercial distribution:

Application—each source ...................................................................................................................................................... $940.

Amendment—each source ..................................................................................................................................................... $630.

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 ...................................................................................................................................................... $480.

Amendment—each source ..................................................................................................................................................... $160.

10. Transportation of radioactive material:

A. Evaluation of casks, packages, and shipping containers:

Approval, Renewal, Amendment ........................................................................................................................................... Full Cost.

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

B. Evaluation of 10 CFR Part 71 quality assurance programs:

Application—Approval ............................................................................................................................................................ $350.

Amendment ............................................................................................................................................................................ $640.

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

11. Review of standardized spent fuel facilities:

Approval, Renewal, Amendment ........................................................................................................................................... Full Cost.

Inspections ............................................................................................................................................................................. 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:

Approvals ............................................................................................................................................................................... Full Cost.

Amendments, revisions, and supplements ............................................................................................................................ Full Cost.
8898 Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules

SCHEDULE OF MATERIALS FEES—Continued

[See footnotes at end of table]

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

Reapproval ............................................................................................................................................................................. 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 pursuant to 10 CFR parts 30, 40, 70, and 72 of this chapter:

Approval, Renewal, Amendment ........................................................................................................................................... Full Cost.

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

15. Import and Export licenses:

Licenses issued pursuant to 10 CFR 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 ....................................................................................................................................................... $8,100.

Amendment ............................................................................................................................................................................ $8,100.

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

Amendment ............................................................................................................................................................................ $5,000.

C. Application for export of routine reloads of low enriched uranium reactor fuel and exports of source material requiring

only foreign government assurances under the Atomic Energy Act.

Application—new license ....................................................................................................................................................... $2,900.

Amendment ............................................................................................................................................................................ $2,900.

D. Application for export or import of other materials, including radioactive waste, not requiring Commissioner review, Executive Branch review, or foreign government assurances under the Atomic Energy Act. This category includes application

for export or import of radioactive waste where the NRC has previously authorized the export or import of the same form

of waste to or from the same or similar parties, requiring only confirmation from the receiving facility and licensing authorities that the shipments may proceed according to previously agreed understandings and procedures.

Application—new license ....................................................................................................................................................... $1,300.

Amendment ............................................................................................................................................................................ $1,300.

E. Minor amendment of any export or import license to extend the expiration date, change domestic information, or make

other revisions which do not require in-depth analysis, review, or consultations with other agencies or foreign governments.

Amendment ............................................................................................................................................................................ $190.

16. Reciprocity:

Agreement State licensees who conduct activities under the reciprocity provisions of 10 CFR 150.20

Application (initial filing of Form 241) .................................................................................................................................... $1,100.

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, amendments and certain 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 approvals; applications to reinstate expired, terminated or inactive licenses

and approvals except those subject to fees assessed at full costs, and applications filed by Agreement State licensees to register under the general license provisions of 10 CFR 150.20, must be accompanied by the prescribed application fee for each category, except that:

(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; and

(2) Applications for licenses under Category 1E must be accompanied by the prescribed application fee of $125,000.

(b) License/approval/review fees. Fees for applications for new licenses and approvals and for preapplication consultations and reviews 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), (e), and (f).

(c) Renewal/reapproval fees. Applications subject to full cost fees (fee Categories 1A, 1B, 1E, 2A, 4A, 5B, 10A, 11, 13A, and 14) are due upon

notification by the Commission in accordance with § 170.12(d).

(d) Amendment/Revision Fees.

(1) Applications for amendments to licenses and approvals and revisions to reciprocity initial applications, except those subject to fees assessed at full costs, 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. For those licenses and approvals subject to full costs (fee Categories 1A, 1B, 1E, 2A, 4A, 5B, 10A, 11, 12,

13A, and 14), amendment fees are due upon notification by the Commission in accordance with § 170.12(c).

(2) An application for amendment to a materials license or approval that would place the license or approval in a higher fee category or add a

new fee category must be accompanied by the prescribed application fee for the new category.

(3) An application for amendment to a license or approval that would reduce the scope of a licensee’s program to a lower fee category must

be accompanied by the prescribed amendment fee for the lower fee category.

(4) Applications to terminate licenses authorizing small materials programs, when no dismantling or decontamination procedure is required, are

not subject to fees.
Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules 8899

(e) 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. The fees assessed at full cost will be determined based on the professional staff time required to conduct the inspection multiplied by the rate established under § 170.20 plus any applicable contractual support services costs incurred.

Inspection fees are due upon notification by the Commission in accordance with § 170.12(g). 2Fees will not be charged for orders issued by the Commission pursuant to 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 now

or hereafter in effect) 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 and appropriate contractual support services expended. For those 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 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. The minimum total review cost is twice the hourly rate shown 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 in those instances in which an application deals only with the sealed sources authorized by the license. Applicants 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. 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 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 OPERATING 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

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. Section 171.13 is revised to read as

follows.

§ 171.13 Notice.

The annual fees applicable to an

operating reactor and to a materials

licensee, including a Government

agency licensed by the NRC, subject to

this part and calculated in accordance

with §§ 171.15 and 171.16, will be

published as a notice in the Federal

Register as soon as is practicable but no

later than the third quarter of FY 1997

and 1998. The annual fees will become

due and payable to the NRC in

accordance with § 171.19 except as

provided in § 171.17. Quarterly

payments of the annual fees of $100,000

or more will continue during the fiscal

year and be based on the applicable

annual fees as shown in §§ 171.15 and

171.16 of the regulations until a notice

concerning the revised amount of the

fees for the fiscal year is published by

the NRC. If the NRC is unable to publish

a final fee rule that becomes effective

during the current fiscal year, then fees

would be assessed based on the rates in

effect for the previous fiscal year.

8. In § 171.15, paragraphs (a), (b), (c)

introductory text, (c)(1), (c)(2), (e), and

(f) are revised to read as follows:

§ 171.15 Annual fees: Reactor operating

licenses.

(a) Each person licensed to operate a

power, test, or research reactor shall pay

the annual fee for each unit for which

the person holds an operating license at

any time during the Federal FY in

which the fee is due, except for those

test and research reactors exempted in

§ 171.11 (a)(1) and (a)(2).

(b) The FY 1997 uniform annual fee

for each operating power reactor which

must be collected by September 30,

1997, is $2,972,000. This fee has been

determined by adjusting the FY 1996

annual fee upward by 8.2 percent. In the

FY 1995 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 and adjustments based

on changes in 10 CFR part 170 fees as

well as on the number of licensees

paying the fees. The first adjustment to

the annual fees using this method

occurred in FY 1996 when all annual

fees were decreased 6.5 percent below

the FY 1995 annual fees. The FY 1995

annual fee was comprised of a base

annual fee and an additional charge

(surcharge). The activities comprising

the base FY 1995 annual fee are as

follows:

(1) Power reactor safety and

safeguards regulation except licensing

and inspection activities recovered

under 10 CFR part 170 of this chapter.

(2) Research activities directly related

to the regulation of power reactors.

(3) Generic activities required largely

for NRC to regulate power reactors, e.g.,

updating part 50 of this chapter, or

operating the Incident Response Center.

(c) The activities comprising the FY

1995 surcharge are as follows:

(1) Activities not attributable to an

existing NRC licensee or class of

licensees; e.g., reviews submitted by

other government agencies (e.g., DOE)

that do not result in a license or are not

associated with a license; international

cooperative safety program and

international safeguards activities; lowlevel waste disposal generic activities;

uranium enrichment generic activities;

and

(2) Activities not currently assessed

under 10 CFR Part 170 licensing and

inspection fees based on existing

Commission policy, e.g., reviews and

inspections conducted of nonprofit

educational institutions, and costs that

would not be collected from small

entities based on Commission policy in

accordance with the Regulatory

Flexibility Act.

* * * * *

(e) The FY 1997 annual fees for

licensees authorized to operate a

nonpower (test and research) reactor

licensed under part 50 of this chapter,
8900 Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules

except for those reactors exempted from

fees under § 171.11(a), are as follows:

Research reactor...................................$57,200

Test reactor...........................................$57,200

(f) For FY 1997 and FY 1998, annual

fees for operating reactors will be

calculated and assessed in accordance

with § 171.13.

9. In § 171.16, the introductory text of

paragraph (c) and paragraphs (c)(1),

(c)(4), (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, the licensee may pay

reduced annual fees for FY 1997 as

follows:

Small businesses not engaged in manufacturing and

small not-for-profit organizations (gross annual receipts)

Maximum annual fee per licensed category

$350,000 to $5 million .......... $1,800

Less than $350,000 .............. 400

Manufacturing entities that

have an average of 500

employees or less:

35 to 500 employees ........ 1,800

Less than 35 employees ... 400

Small Governmental Jurisdictions (Including publicly

supported educational institutions) (Population):

20,000 to 50,000 ............... 1,800

Less than 20,000 .............. 400

Educational Institutions that

are not State or Publicly

Supported, and have 500

Employees or Less:

35 to 500 employees ........ 1,800

Less than 35 employees ... 400

(1) A licensee qualifies as a small

entity if it meets the size standards

established by the NRC (See 10 CFR

2.810).

* * * * *

(4) For FY 1997, the maximum annual

fee a small entity is required to pay is

$1,800 for each category applicable to

the license(s).

(d) The FY 1997 annual fees for

materials licensees and holders of

certificates, registrations or approvals

subject to fees under this section are

shown below. The FY 1997 annual fees,

which must be collected by September

30, 1997, have been determined by

adjusting upward the FY 1996 annual

fees by 8.2 percent. In the FY 1995 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

and adjustments based on changes in 10

CFR part 170 fees as well as on the

number of licensees paying the fees. The

first adjustment to the annual fees using

this method occurred in FY 1996 when

all annual fees were decreased 6.5

percent below the FY 1995 annual fees.

The FY 1995 annual fee was comprised

of a base annual fee and an additional

charge (surcharge). The activities

comprising the FY 1995 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 1 2 3

1. Special nuclear material:

A. (1) Licenses for possession and use of U–235 or plutonium for fuel fabrication activities.

(a) Strategic Special Nuclear Material:

Babcock & Wilcox SNM–42 ........................................................................................................................................... $2,600,000

Nuclear Fuel Services SNM–124 ................................................................................................................................... 2,600,000

(b) Low Enriched Uranium in Dispersible Form Used for Fabrication of Power Reactor Fuel:

Combustion Engineering (Hematite) SNM–33 ............................................................................................................... 1,276,000

General Electric Company SNM–1097 .......................................................................................................................... 1,276,000

Siemens Nuclear Power SNM–1227 ............................................................................................................................. 1,276,000

Westinghouse Electric Company SNM–1107 ................................................................................................................ 1,276,000

(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:

B&W Fuel Company SNM–1168 ................................................................................................................................... 508,000

(b) All Others:

General Electric SNM–960 ............................................................................................................................................. 345,000

B. Licenses for receipt and storage of spent fuel at an independent spent fuel storage installation (ISFSI) ............................. 282,000

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 ................................................................................................... 1,300

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) ........................................................................................................................... 3,000

E. Licenses or certificates for the operation of a uranium enrichment facility ............................................................................. 2,600,000

2. Source material:

A. (1) Licenses for possession and use of source material for refining uranium mill concentrates to uranium hexafluoride .... 647,000

(2) Licenses for possession and use of source material in recovery operations such as milling, in-situ leaching, heapleaching, 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 ............................................................................................................................................................ 61,600

Class II facilities 4 ........................................................................................................................................................... 34,800

Other facilities 4 .............................................................................................................................................................. 22,300

(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) ...................................................................................................................................................................... 45,200
Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules 8901

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 1 2 3

(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) .................................... 8,000

B. Licenses which authorize only the possession, use and/or installation of source material for shielding ............................... 490

C. All other source material licenses ............................................................................................................................................ 8,700

3. Byproduct material:

A. Licenses of broad scope for possession and use of byproduct material issued pursuant to parts 30 and 33 of this chapter for processing or manufacturing of items containing byproduct material for commercial distribution ................................ 16,600

B. Other licenses for possession and use of byproduct material issued pursuant to part 30 of this chapter for processing or

manufacturing of items containing byproduct material for commercial distribution ................................................................. 5,600

C. Licenses issued pursuant to §§ 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 pursuant to 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 .............................................................................................................................................. 11,200

D. Licenses and approvals issued pursuant to §§ 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 pursuant to §§ 32.72, 32.73 and 32.74 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 pursuant to part 40 of this chapter when included on the

same license ............................................................................................................................................................................. 4,400

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) .................................................................................................................. 3,200

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 .................................................................... 3,800

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 .................................................................... 19,600

H. Licenses issued pursuant to 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 ................................................................................................................................................ 5,000

I. Licenses issued pursuant to 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 ......................................................... 8,900

J. Licenses issued pursuant to 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 ............................................................................................................................................................... 3,800

K. Licenses issued pursuant to 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 ................................................................................. 3,200

L. Licenses of broad scope for possession and use of byproduct material issued pursuant to parts 30 and 33 of this chapter

for research and development that do not authorize commercial distribution ......................................................................... 12,300

M. Other licenses for possession and use of byproduct material issued pursuant to part 30 of this chapter for research and

development that do not authorize commercial distribution ..................................................................................................... 5,500

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 6,100

O. Licenses for possession and use of byproduct material issued pursuant to part 34 of this chapter for industrial radiography operations. This category also includes the possession and use of source material for shielding authorized pursuant

to part 40 of this chapter when authorized on the same license ............................................................................................. 14,000

P. All other specific byproduct material licenses, except those in Categories 4A through 9D ................................................... 1,700

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 ............................................................... 5 102,000

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 ........................................................................... 14,400
8902 Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules

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 1 2 3

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 ............................................................................................................................................ 7,700

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 ................................................................................. 8,200

B. Licenses for possession and use of byproduct material for field flooding tracer studies ....................................................... 13,200

6. Nuclear laundries:

A. Licenses for commercial collection and laundry of items contaminated with byproduct material, source material, or special nuclear material .................................................................................................................................................................. 14,700

7. Medical licenses:

A. Licenses issued pursuant to 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 ....................................................... 10,300

B. Licenses of broad scope issued to medical institutions or two or more physicians pursuant to 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 .... 23,500

C. Other licenses issued pursuant to 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 ................................................................................................. 4,700

8. Civil defense:

A. Licenses for possession and use of byproduct material, source material, or special nuclear material for civil defense activities ........................................................................................................................................................................................ 1,800

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 .................................................................. 7,200

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 ....................................................................................................................................................... 3,700

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 ..................................................................................... 1,600

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 .................................................................................................................................................................... 780

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. Approvals issued of 10 CFR part 71 quality assurance programs

Users and Fabricators ........................................................................................................................................................... 78,700

Users ..................................................................................................................................................................................... 1,000

11. Standardized spent fuel facilities ................................................................................................................................................... 6 N/A

12. Special Projects ............................................................................................................................................................................. 6 N/A

13. A. Spent fuel storage cask Certificate of Compliance .................................................................................................................. 6 N/A

B. General licenses for storage of spent fuel under 10 CFR 72.210 .......................................................................................... 282,000

14. Byproduct, source, or special nuclear material licenses and other approvals authorizing decommissioning, decontamination,

reclamation, or site restoration activities pursuant to 10 CFR parts 30, 40, 70, and 72 ................................................................ 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 ................................................................................ 420,000

18. Department of Energy:

A. Certificates of Compliance ....................................................................................................................................................... 101,166,000

B. Uranium Mill Tailing Radiation Control Act (UMTRCA) activities ............................................................................................ 1,961,000

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, 1996, and

permanently ceased licensed activities entirely by September 30, 1996. Annual fees for licensees who filed for termination of a license, downgrade of a license, or for a POL 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 1.A.(1). are not subject to the annual fees of Category 1.C and 1.D 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, or 72 of this chapter. 3For FY 1998, 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.
Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules 8903

5Two licenses have been issued by NRC for land disposal of special nuclear material. Once NRC issues a LLW disposal license for byproduct

and source material, the Commission will consider establishing an annual fee for this type of license. 6Standardized spent fuel facilities, 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 that are not under the Nuclear Waste Fund.

(e) The activities comprising the FY

1995 surcharge are as follows:

(1) LLW disposal generic activities;

(2) Activities not 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

under 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 and 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. In § 171.17, introductory text,

paragraphs (a), (b) introductory text, and

(b)(1) are revised to read as follows:

§ 171.17 Proration.

Annual fees will be prorated for NRC

licensees as follows:

(a) Reactors. The annual fee for

reactors (power and nonpower) that are

subject to fees under this part and are

granted a license to operate on or after

October 1 of a Fiscal Year is prorated on

the basis of the number of days

remaining in the fiscal year. Thereafter,

the full fee is due and payable each

subsequent fiscal year. Licensees who

have requested amendment to withdraw

operating authority permanently during

the fiscal year will be prorated based on

the number of days during the fiscal

year the license was in effect before

docketing of the certifications for

permanent cessation of operations and

permanent removal of fuel from the

reactor vessel or when a final legally

effective order to permanently cease

operations has come into effect.

(b) Materials licenses (including fuel

cycle licenses). (1) New licenses and

terminations. The annual fee for a

materials license that is subject to fees

under this part and issued on or after

October 1 of the FY is prorated on the

basis of when the NRC issues the new

license. New licenses issued during the

period October 1 through March 31 of

the FY will be assessed one-half the

annual fee for that FY. New licenses

issued on or after April 1 of the FY will

not be assessed an annual fee for that

FY. Thereafter, the full fee is due and

payable each subsequent FY. The

annual fee will be prorated for licenses

for which a termination request or a

request for a POL has been received on

or after October 1 of a FY on the basis

of when the application for termination

or POL is received by the NRC provided

the licensee permanently ceased

licensed activities during the specified

period. Licenses for which applications

for termination or POL are filed during

the period October 1 through March 31

of the FY are assessed one-half the

annual fee for the applicable

category(ies) for that FY. Licenses for

which applications for termination or

POL are filed on or after April 1 of the

FY are assessed the full annual fee for

that FY. Materials licenses transferred to

a new Agreement State during the FY

are considered terminated by the NRC,

for annual fee purposes, on the date that

the Agreement with the State becomes

effective; therefore, the same proration

provisions will apply as if the licenses

were terminated.

* * * * *

11. In § 171.19, paragraphs (b), (c),

and (d) are revised to read as follows:

§ 171.19 Payment.

* * * * *

(b) For FYs 1997 and FY 1998, the

Commission will adjust the fourth

quarterly bill for operating power

reactors and certain materials licensees

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. All other

licensees, or holders of a certificate,

registration, or approval of a QA

program will be sent a bill for the full

amount of the annual fee on the

anniversary date of the license. 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.

(c) For FYs 1997 and 1998, annual

fees in the amount of $100,000 or more

and described in the Federal Register

notice pursuant to § 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.

(d) For FYs 1997 and 1998, annual

fees of less than $100,000 must be paid

as billed by the NRC. As established in

FY 1996, materials license annual fees

that are less than $100,000 are billed on

the anniversary of the license. The

materials licensees that are billed on the

anniversary date of the license are those

covered by fee categories 1.C. and 1.D.;

2.A.(2) through 2.C.; 3.A. through 3.P.;

4.B. through 9.D.; and 10.B. 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.

Beginning June 11, 1996, the effective

date of the FY 1996 final rule, 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

prior to 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.

Dated at Rockville, Maryland, this 19th day

of February, 1997.

For the Nuclear Regulatory Commission.

Ronald M. Scroggins,

Acting Chief Financial Officer.

Appendix A to This Proposed 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 of 1980, as

amended, (5 U.S.C. 601 et seq.) establishes as

a principle of regulatory practice that

agencies endeavor to fit regulatory and

informational requirements, consistent with
8904 Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules

applicable statutes, to a scale commensurate

with the businesses, organizations, and

government jurisdictions to which they

apply. To achieve this principle, the Act

requires that agencies consider the impact of

their actions on small entities. If the agency

cannot certify that a rule will not

significantly impact a substantial number of

small entities, then a regulatory flexibility

analysis is required to examine the impacts

on small entities and the alternatives to

minimize these impacts.

To assist in considering these impacts

under the Regulatory Flexibility Act (RFA),

first the NRC adopted size standards for

determining which NRC licensees qualify as

small entities (50 FR 50241; December 9,

1985). These size standards were clarified

November 6, 1991 (56 FR 56672). On April

7, 1994 (59 FR 16513), the Small Business

Administration (SBA) issued a final rule

changing its size standards. The SBA

adjusted its receipts-based size standards

levels to mitigate the effects of inflation from

1984 to 1994. On November 30, 1994 (59 FR

61293), the NRC published a proposed rule

to amend its size standards. After evaluating

the two comments received, a final rule that

would revise the NRC’s size standards as

proposed was developed and approved by

the SBA on March 24, 1995. The NRC

published the final rule revising its size

standards on April 11, 1995 (60 FR 18344).

The revised standards became effective May

11, 1995. The revised standards adjusted the

NRC receipts-based size standards from $3.5

million to $5 million to accommodate

inflation and to conform to the SBA final

rule. The NRC also eliminated the separate

$1 million size standard for private practice

physicians and applied a receipts-based size

standard of $5 million to this class of

licensees. This mirrored the revised SBA

standard of $5 million for medical

practitioners. The NRC also established a size

standard of 500 or fewer employees for

business concerns that are manufacturing

entities. This standard is the most commonly

used SBA employee standard and is the

standard applicable to the types of

manufacturing industries that hold an NRC

license.

The NRC used the revised standards in the

final FY 1995 and FY 1996 fee rules and

proposes to continue their use in this FY

1997 proposed rule. The small entity fee

categories in § 171.16(c) of this proposed rule

reflect the changes in the NRC’s size

standards adopted in FY 1995. A new

maximum small entity fee for manufacturing

industries with 35 to 500 employees was

established at $1,800 and a lower-tier small

entity fee of $400 was established for those

manufacturing industries with less than 35

employees. The lower-tier receipts-based

threshold of $250,000 was raised to $350,000

to reflect approximately the same percentage

adjustment as that made by the SBA when

they adjusted the receipts-based standard

from $3.5 million to $5 million. The NRC

believes that continuing these actions for FY

1997 will reduce the impact of annual fees

on small businesses. The NRC size standards

are codified at 10 CFR 2.810.

Public Law 101–508, the Omnibus Budget

Reconciliation Act of 1990 (OBRA–90),

requires that the NRC recover approximately

100 percent of its budget authority, less

appropriations from the Nuclear Waste Fund,

for Fiscal Years (FY) 1991 through 1995 by

assessing license and annual fees. OBRA–90

was amended in 1993 to extend the 100

percent recovery requirement for NRC

through 1998. For FY 1991, the amount for

collection was approximately $445.3 million;

for FY 1992, approximately $492.5 million;

for FY 1993 about $518.9 million; for FY

1994 about $513 million; for FY 1995 about

$503.6 million; for FY 1996 about $462.3

million and the amount to be collected in FY

1997 is approximately $462.3 million.

To comply with OBRA–90, the

Commission amended its fee regulations in

10 CFR parts 170 and 171 in FY 1991 (56 FR

31472; July 10, 1991) in FY 1992, (57 FR

32691; July 23, 1992) in FY 1993 (58 FR

38666; July 20, 1993) in FY 1994 (59 FR

36895; July 20, 1994) in FY 1995 (60 FR

32218; June 20, 1995) and in FY 1996 (61 FR

16203) based on a careful evaluation of over

1,000 comments. These final rules

established the methodology used by NRC in

identifying and determining the fees assessed

and collected in FYs 1991–1996.

The NRC indicated in the FY 1995 final

rule that it would attempt to stabilize annual

fees as follows. Beginning in FY 1996, it

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, in

which case 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 the 10 CFR part 170 fees and other

adjustments as well as an adjustment for the

number of licensees paying the fees. As a

result, the NRC is proposing to establish the

FY 1997 annual fees for all licensees at 8.2

percent above the FY 1996 annual fees.

Because the total amount to be recovered

through fees in FY 1997 is identical to the

amount estimated for recovery in FY 1996,

the NRC believes that establishing new

baseline fees for FY 1997 is not warranted.

Public Law 104–121, the Contract with

America Advancement Act of 1996 was

signed into law on March 29, 1996. Title III

of the law is entitled the Small Business

Regulatory Enforcement Fairness Act of 1996

(SBREFA). The SBREFA has two purposes.

The first is to reduce regulatory burdens

imposed by Federal agencies on small

businesses, nonprofit organizations and

governmental jurisdictions. The second is to

provide the Congress with the opportunity to

review agency rules before they go into effect.

Under this legislation, the NRC fee rule,

published annually, is considered a ‘‘major’’

rule and therefore must be reviewed by

Congress and the Comptroller General before

the rule becomes effective. Section 312 of the

Act provides that for each rule for which an

agency prepared a final regulatory flexibility

analysis, the agency shall prepare a guide to

assist small entities in complying with the

rule. A regulatory flexibility analysis is

prepared for the proposed and final NRC fee

rules as implemented by 10 CFR part 170 and

171 of the Commission’s regulations.

Therefore, in compliance with the law,

Attachment 1 to this Regulatory Flexibility

Analysis is the small entity compliance guide

for FY 1997.

II. Impact on Small Entities

The comments received on the proposed

FY 1991–1996 fee rule revisions and the

small entity certifications received in

response to the final FY 1991–1996 fee rules

indicate that NRC licensees qualifying as

small entities under the NRC’s size standards

are primarily those licensed under the NRC’s

materials program. Therefore, this analysis

will focus on the economic impact of the

annual fees on materials licensees.

The Commission’s fee regulations result in

substantial fees being charged to those

individuals, organizations, and companies

that are licensed under the NRC materials

program. Of these materials licensees, about

20 percent (approximately 1,400 licensees)

have requested small entity certification in

the past. In FY 1993, the NRC conducted a

survey of its materials licensees. The results

of this survey indicated that about 25 percent

of these licensees could qualify as small

entities under the current NRC size

standards.

The commenters on the FY 1991–1994

proposed fee rules indicated the following

results if the proposed annual fees were not

modified:

—Large firms would gain an unfair

competitive advantage over small entities.

One commenter noted that a small welllogging company (a ‘‘Mom and Pop’’ type

of operation) would find it difficult to

absorb the annual fee, while a large

corporation would find it easier. Another

commenter noted that the fee increase

could be more easily absorbed by a highvolume nuclear medicine clinic. A gauge

licensee noted that, in the very competitive

soils testing market, the annual fees would

put it at an extreme disadvantage with its

much larger competitors because the

proposed fees would be the same for a twoperson licensee as for a large firm with

thousands of employees.

—Some firms would be forced to cancel their

licenses. One commenter, 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. Another commenter

noted that the rule would force the

company and many other 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.

—Some companies would go out of business.

One commenter noted that the proposal

would put it, and several other small

companies, out of business or, at the very

least, make it hard to survive.

—Some companies would have budget

problems. Many medical licensees

commented that, in these times of slashed

reimbursements, the proposed increase of
Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules 8905

the existing fees and the introduction of

additional fees would significantly affect

their budgets. Another 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.

Over the past five years, approximately

2,900 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.

The NRC continues to receive written and

oral comments from small materials

licensees. These commenters previously

indicated that the $3.5 million threshold for

small entities was not representative of small

businesses with gross receipts in the

thousands of dollars. These commenters

believe that the $1,800 maximum annual fee

represents a relatively high percentage of

gross annual receipts for these ‘‘Mom and

Pop’’ type businesses. Therefore, even the

reduced annual fee could have a significant

impact on the ability of these types of

businesses to continue to operate.

To alleviate the continuing significant

impact of the annual fees on a substantial

number of small entities, the NRC considered

alternatives, in accordance with the RFA.

These alternatives were evaluated in the FY

1991 rule (56 FR 31472; July 10, 1991) in the

FY 1992 rule (57 FR 32691; July 23, 1992),

in the FY 1993 rule (58 FR 38666; July 20,

1993); in the FY 1994 rule (59 FR 36895; July

20, 1994); in the FY 1995 rule (60 FR 32218;

June 20, 1995) and in the FY 1996 rule (61

FR 16203; April 12, 1996). The alternatives

considered by the NRC can be summarized

as follows.

—Base fees on some measure of the amount

of radioactivity possessed by the licensee

(e.g., number of sources).

—Base fees on the frequency of use of the

licensed radioactive material (e.g., volume

of patients).

—Base fees on the NRC size standards for

small entities.

The NRC has reexamined the FY 1991–

1996 evaluations of these alternatives. Based

on that reexamination, the NRC continues to

believe that establishment of a maximum fee

for small entities is the most appropriate

option to reduce the impact on small entities.

The NRC established, and is proposing to

continue for FY 1997, a maximum annual fee

for small entities. 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. For FY 1997, the

NRC will rely on the analysis previously

completed that established a maximum

annual fee for a small entity and the amount

of costs that must be recovered from other

NRC licensees as a result of establishing the

maximum annual fees.

The NRC continues to believe that the 10

CFR part 170 license fees (application and

amendment), or any adjustments to these

licensing fees during the past year, do not

have a significant impact on small entities. In

issuing this proposed rule for FY 1997, the

NRC concludes that the 10 CFR part 170

materials license fees do not have a

significant impact on a substantial number of

small entities and that the 10 CFR part 171

maximum annual small entity fee of $1,800

be continued.

By maintaining the maximum annual fee

for small entities at $1,800, the annual fee for

many small entities is reduced while at the

same time materials licensees, including

small entities, pay for most of the FY 1997

costs attributable to them. The costs not

recovered from small entities are allocated to

other materials licensees and to operating

power reactors. However, the amount that

must be recovered from other licensees as a

result of maintaining the maximum annual

fee is not expected to increase significantly.

Therefore, the NRC is continuing, for FY

1997, the maximum annual fee (base annual

fee plus surcharge) for certain small entities

at $1,800 for each fee category covered by

each license issued to a small entity.

While reducing the impact on many small

entities, the Commission agrees that the

maximum annual fee of $1,800 for small

entities, when added to the part 170 license

fees, may continue to have a significant

impact on materials licensees with annual

gross receipts in the thousands of dollars.

Therefore, as in FY 1992–1996, the NRC is

proposing to continue the lower-tier small

entity annual fee of $400 for small entities

with relatively low gross annual receipts. The

lower-tier small entity fee of $400 also

applies to manufacturing concerns, and

educational institutions not State or publicly

supported, with less than 35 employees. This

lower-tier small entity fee was first

established in the final rule published in the

Federal Register on April 17, 1992 (57 FR

13625) and now includes manufacturing

companies with a relatively small number of

employees.

III. Summary

The NRC has determined the 10 CFR part

171 annual fees significantly impacts 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 $1,800 for small entities and a lower-tier

small entity annual fee of $400 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 proposed

fees for small entities maintain a balance

between the objectives of OBRA–90 and the

RFA. Therefore, the analysis and conclusions

established in the FY 1991–1996 rules

remain valid for this proposed rule for FY

1997. In compliance with Public Law 104–

121, a small entity compliance guide has

been prepared by NRC and is shown as

Attachment 1 to this Regulatory Flexibility

Analysis.

Attachment 1 to Appendix A

U.S. Nuclear Regulatory Commission, Small

Entity Compliance Guide, Fiscal Year 1997

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 action as

defined by the Act. The NRC’s fee rule

published annually to comply with the

Omnibus Budget Reconciliation Act of 1990

(OBRA–90) which requires the NRC to collect

approximately 100 percent of its budget

authority each year through fees meets the

thresholds for being considered ‘‘major’’

under the SBREFA. Therefore, in compliance

with the law, this small entity compliance

guide has been prepared for FY 1997. The

purpose of this guide is to assist small

entities in complying with the NRC fee rule.

This guide is designed to aid NRC

materials licensees. The information

provided in this guide may be used by

licensees to determine whether they qualify

as a small entity under NRC regulations and

are therefore eligible to pay reduced FY 1997

annual fees assessed under 10 CFR part 171.

Licensees who meet NRC’s size standards for

a small entity must complete NRC Form 526

in order to qualify for the reduced annual fee.

NRC Form 526 will accompany each annual

fee invoice mailed to materials licensees. The

completed form, along with the appropriate

small entity fee payment copy of the invoice,

should be mailed to the U.S. Nuclear

Regulatory Commission, License Fee and

Accounts Receivable Branch, PO Box 954514,

St. Louis, MO 63195–4514.

The NRC, in compliance with the

Regulatory Flexibility Act of 1980 (RFA), has

established separate annual fees for those

materials licensees who meet the NRC’s size

standards for small entities. These size

standards, developed in consultation with

the Small Business Administration, were

revised by the NRC effective May 11, 1995.

The small entity size standards are found in

10 CFR 2.810 of the NRC’s regulations. To

comply with the RFA, the NRC has

established two tiers of small entity fees.

These fees are found in 10 CFR 171.16(c) of

the fee regulations.

NRC Definition of Small Entity

The NRC has defined small entity in

consultation with the Small Business

Administration. The definition is codified in

NRC’s regulations at 10 CFR 2.810. Under the

NRC regulation, small entities are:
8906 Federal Register / Vol. 62, No. 39 / Thursday, February 27, 1997 / Proposed Rules

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.

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

The NRC has established two tiers of small

entity fees for licensees that qualify under the

NRC’s size standards. Currently, these fees

are as follows:

Maximum

annual

fee per licensed

category

Small Business Not Engaged in

Manufacturing and Small NotFor Profit Organizations (Gross

Annual Receipts):

$350,000 to $5 million ............... $1,800

Less than $350,000 .................. 400

Manufacturing entities that have

an average of 500 employees

or less:

35 to 500 employees ................ 1,800

Less than 35 employees ........... 400

Small Governmental Jurisdictions

(Including publicly supported

educational institutions) (Population):

20,000 to 50,000 ................... 1,800

Less than 20,000 ................... 400

Educational Institutions that are

not State or Publicly Supported,

and have 500 Employees or

Less:

35 to 500 employees ................ 1,800

Less than 35 employees ........... 400

To pay a reduced annual fee, a licensee

must use NRC Form 526, enclosed with the

fee bill, to certify that it meets NRC’s size

standards for a small entity. About 1,400

licensees certify each year that they qualify

as a small entity under the NRC size

standards and pay a reduced annual fee.

Approximately 900 licensees pay the small

entity fee of $1,800 while 500 licensees pay

the lower-tier small entity fee of $400.

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 are 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.

(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.

3. 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

$1,800 or $400, for each fee category shown

on the invoice depending on the size of the

entity. 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 onehalf 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 $900 or $200) for each fee category

billed instead of the full annual fee of $1,800

or $400.

4. A new small entity form is required to

be filed with the NRC each fiscal year in

order 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 form, 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, P.O. Box 954514, St.

Louis, MO 63195–4514.

5. Questions regarding fee bills may be

posed orally or in writing. Please call the

licensing fee staff at 301–415–7554 or write

to the U.S. Nuclear Regulatory Commission,

Washington, DC 20555, Attention: Office of

the Chief Financial Officer.

[FR Doc. 97–4704 Filed 2–26–97; 8:45 am]

BILLING CODE 7590–01–P

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety

Administration

49 CFR Part 571

[Docket No. 94–97; Notice 2]

RIN 2127–AF40

Federal Motor Vehicle Safety

Standards; Roof Crush Resistance

AGENCY: National Highway Traffic

Safety Administration (NHTSA),

Department of Transportation.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This document proposes to

revise the test procedures in Standard

No. 216, Roof Crush Resistance, to make

them more suitable to testing vehicles

with highly sloped roofs or raised roofs.

The current test procedure is intended

to test the strength of the roof over the

driver. It involves lowering a large test

plate, inclined forward at a five degree

angle, to an initial contact point near the

leading edge of the roof. However, when

the procedure is performed on certain

rounded, aerodynamically-shaped roofs

that may themselves slope at more than

five degrees, small differences in test

plate angle result in considerable

variability in the location of the initial

contact point, thus reducing the

repeatability of the test results.

Similarly, for vehicles with raised,

irregularly shaped roofs (such as some

converted vans), the initial contact point

may not be above the driver, but on the

raised rear portion of the roof, behind

the driver.

This proposal addresses these

problems by specifying the use of a

smaller test plate for use on vehicles on

which the use of the current larger test

plate would result in an initial contact

point behind the driver. The rearward

edge of the smaller test plate will be