[Federal Register Volume 61, Number 20 (Tuesday, January 30, 1996)]
[Proposed Rules]
[Pages 2948-2968]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1524]



========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

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.

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Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / 
Proposed Rules

[[Page 2948]]


NUCLEAR REGULATORY COMMISSION

10 CFR Parts 170 and 171

RIN 3150-AF39


Revision of Fee Schedules; 100% Fee Recovery, FY 1996

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) 1996 less amounts appropriated from the Nuclear 
Waste Fund (NWF). The amount to be recovered for FY 1996 is 
approximately $462.3 million.

DATES: The comment period expires February 29, 1996. 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 1996 fees by September 30, 1996, 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 Service 
Branch. Hand deliver comments to: 11555 Rockville Pike, Rockville, 
Maryland 20852, between 7:30 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 
Controller, 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

    Pub. L. 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 June 20, 1995 (60 FR 32218), 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 1995, less the appropriation received from the Nuclear Waste 
Fund.
    The NRC stated in the FY 1995 final rule that in an effort to 
stabilize annual fees, beginning in FY 1996 the NRC would adjust the 
annual fees 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 stated that the 
percentage change would be adjusted based on changes in the 10 CFR part 
170 fees and other receipts as well as on the number of licensees 
paying fees.

II. Proposed Action

    The NRC is proposing to amend its licensing, inspection, and annual 
fees to recover approximately 100 percent of its FY 1996 budget 
authority, including the budget authority for its Office of the 
Inspector General, less the appropriations received from the NWF. For 
FY 1996, the NRC's budget authority is $473.3 million, of which 
approximately $11.0 million has been appropriated from the NWF. 
Therefore, OBRA-90 requires that the NRC collect approximately $462.3 
million in FY 1996 through 10 CFR part 170 licensing and inspection 
fees and 10 CFR part 171 annual fees. This amount to be recovered for 
FY 1996 is about $41.3 million less than the total amount to be 
recovered for FY 1995 and $50.7 million less when compared to the 
amount to be recovered for FY 1994. The NRC estimates that 
approximately $120.3 million will be recovered in FY 1996 from fees 
assessed under 10 CFR part 170 and other offsetting receipts. The 
remaining $342 million will be recovered through the 10 CFR part 171 
annual fees established for FY 1996.
    As a result of the reduced amount to be recovered for FY 1996 and 
the proposed changes outlined in this section, the FY 1996 annual fees 
for all licensees have been reduced by about 6 percent compared to the 
annual fees assessed for FY 1995. The following examples illustrate 
changes in annual fees.

[[Page 2949]]


------------------------------------------------------------------------
                                          FY 1995 annual  FY 1996 annual
                                                fee             fee     
------------------------------------------------------------------------
Class of licensees:                                                     
  Power Reactors........................      $2,936,000      $2,747,000
  Nonpower Reactors.....................          56,500          52,900
  High Enriched Uranium Fuel Facility...       2,569,000       2,404,000
  Low Enriched Uranium Fuel Facility....       1,261,000       1,180,000
  UF<INF>6 Conversion Facility...............         639,200         598,100
  Uranium Mills.........................          60,900          57,000
Typical materials licensees:                                            
  Radiographers.........................          13,900          13,000
  Well Loggers..........................           8,100           7,500
  Gauge Users...........................           1,700           1,600
  Broad Scope Medical...................          23,200          21,700
------------------------------------------------------------------------

    The NRC is also proposing to continue its streamlining of the fee 
structure and process for materials licenses which began in FY 1995 and 
make other changes as discussed in Sections A and B. Among the changes 
would be a change in the billing date for the annual fees imposed on 
many materials licensees.
    As in FYs 1991-1995, the fees will become effective 30 days after 
publication of the final rule in the Federal Register. The NRC would 
send a bill for the amount of the annual fee upon publication of the FY 
1996 final rule to the licensee or certificate, registration or 
approval holder not subject to quarterly billing (those licensees who 
pay annual fees of less than $100,000) and whose anniversary date (the 
first day of the month in which the original license was issued) is 
before the effective date of the final FY 1996 rule. For these 
licensees, payment would be due on the effective date of the FY 1996 
rule. Those materials licensees whose license anniversary date during 
FY 1996 falls after the effective date of the final FY 1996 rule would 
be billed during the anniversary month of the license and payment would 
be due 30 days after the initial invoice is issued.
    If the NRC decides not to pursue some or all of these changes, 
based on the public comments, the respective current fee policies would 
continue in effect for FY 1996. Comments are also requested on whether 
the NRC should continue current fee policies in lieu of the changes in 
this proposed rule.

A. Amendments to 10 CFR Part 170: Fees for Facilities, Materials, 
Import and Export Licenses, and Other Regulatory Services

    The NRC proposes four amendments to 10 CFR part 170. First, the NRC 
proposes that the two professional hourly rates established in FY 1995 
in Sec. 170.20 be revised based on the FY 1996 budget. These proposed 
rates would be based on the FY 1996 direct FTEs and that portion of the 
FY 1996 budget that either does not constitute direct program support 
(contractual services costs) or is not recovered through the 
appropriation from the NWF. These rates are used to determine the part 
170 fees. The NRC is proposing to establish a rate of $128 per hour 
($223,314 per direct FTE) for the reactor program. This rate is 
applicable to all activities whose fees are based on full cost under 
Sec. 170.21 of the fee regulations. A second rate of $120 per hour 
($209,057 per direct FTE) is proposed for the nuclear materials and 
nuclear waste program. This rate is applicable to all materials 
activities whose fees are based on full cost under Sec. 170.31 of the 
fee regulations.
    The two rates continue to be 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 separately 
distinguished. These costs include all salaries and benefits, contract 
support, and travel that support each cost center activity.
    Second, the NRC proposes that the current part 170 licensing and 
inspection fees in Secs. 170.21 and 170.31 for applicants and licensees 
be adjusted to reflect the changes in the revised hourly rates.
    Third, to continue FY 1995 initiatives for streamlining its fee 
program and improving the predictability of fees, the NRC is proposing 
to eliminate certain materials ``flat'' renewal fees in Sec. 170.31 and 
to amend Sec. 170.12 accordingly. This proposed action is also 
consistent with NRC's recent Business Process Reengineering initiative 
to extend the duration of certain materials licenses. The NRC published 
a proposed rule in the Federal Register for comment on September 8, 
1995 (60 FR 46784) explaining this initiative. In the September 8, 
1995, proposed rule, certain materials licenses would be extended for 
five years beyond their expiration date. Additionally, comments were 
requested on the general topic of the appropriate duration of licenses. 
A final rule was published in the Federal Register on January 16, 1996 
(61 FR 1109).
    The proposed elimination of 10 CFR part 170 materials ``flat'' 
renewal fees continues to recognize that the NRC's ``regulatory 
service'' provided to licensees, as referred to in OBRA-90, is 
comprised of the total regulatory activities that the NRC determines 
are needed to regulate a class of licensees. These regulatory 
activities include not only renewals but also inspections, research, 
rulemaking, orders, enforcement actions, responses to allegations, 
incident investigations, and other activities necessary to regulate 
classes of licensees. This proposed action does not result in any net 
fee increases for affected licensees and would provide those licensees 
with greater fee predictability, a frequent licensee request in 
comments on past fee rules. The materials annual fees, which include 
the cost for any renewals, would become effective for FY 1996. 
Materials licensees who paid a ``flat'' 10 CFR part 170 renewal fee for 
renewal applications filed in FY 1996 would receive a refund for those 
payments, as appropriate.
    Fourth, the language in Sec. 170.31, Category 15, relating to 
export and import licenses, would be amended to clarify that export and 
import of materials includes the export and import of radioactive 
waste. The NRC amended 10 CFR part 110 effective August 21, 1995 (60 FR 
37556, July 21, 1995), to require specific licenses for the export or 
import of radioactive waste.
    In summary, the NRC is proposing to (1) Revise the two 10 CFR part 
170 hourly rates; (2) revise the licensing fees assessed under 10 CFR 
part 170 to reflect the cost to the agency of providing the service; 
(3) eliminate the materials ``flat'' renewal fees in Sec. 170.31 and 
amend Sec. 170.12 accordingly; and (4) amend Category 15 in Sec. 170.31 
to make 

[[Page 2950]]
clear that fees would be assessed for licenses authorizing the export 
or import of radioactive waste.

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 three amendments to 10 CFR part 171. First, the 
NRC proposes to amend Secs. 171.15 and 171.16 to revise the annual fees 
for FY 1996 to recover approximately 100 percent of the FY 1996 budget 
authority, less fees collected under 10 CFR part 170 and funds 
appropriated from the NWF.
    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 the 10 CFR part 170 fees and other receipts as well as on the number 
of licensees paying the fees. The NRC does not believe the changes to 
the FY 1996 budget compared to the FY 1995 budget warrant establishing 
new baseline fees for FY 1996. Therefore, the NRC is proposing that the 
FY 1996 annual fees for all licensees be reduced by 6.4 percent. The 
6.4 percent reduction is based on the changes in the budget to be 
recovered from fees, the amount of the budget recovered for 10 CFR part 
170 fees and other offsetting receipts, and changes in the number of 
licensees paying annual fees. Table I shows the total budget and fee 
amounts for FY 1995 and FY 1996.

  Table I.--Calculation of the Percentage Change to the FY 1995 Annual  
                                  Fees                                  
                          [Dollars in millions]                         
------------------------------------------------------------------------
                                                        FY95      FY96  
------------------------------------------------------------------------
Total budget........................................    $525.6    $473.3
  Less NWF..........................................     -22.0     -11.0
                                                     -------------------
      Total fee base................................     503.6     462.3
Less part 170 fees and other receipts...............     141.1     120.3
                                                     -------------------
      Total annual fee amount.......................     362.5     342.0
------------------------------------------------------------------------

    As shown in Table I, the total amount to be recovered from annual 
fees in FY 1996 is $20.5M ($342.0-$362.5) or 5.7 percent less than the 
amount that was to be recovered from annual fees in FY 1995. This 
difference is the net change resulting from a reduction in the budget 
and a reduction in the expected collection from 10 CFR part 170 fees 
and other offsetting receipts. The NRC notes that the reduction in 10 
CFR part 170 fees for FY 1996 results primarily from the fact that NRC 
had a one-time collection of five quarters of 10 CFR part 170 fees in 
FY 1995 as a result of changes in our billing practices which permits 
us to bill for services shortly after they are rendered.
    In addition to changes in the budget and 10 CFR part 170 fees and 
other receipts, the number of licensees to pay fees in FY 1996 changed 
compared to FY 1995. Also, the amount of the small entity surcharge 
(difference between annual fee and small entity fee) decreased as the 
annual fees decreased. The changes in the number of licensees in the 
various classes plus the reduction in the small entity surcharge result 
in an additional decrease in the annual fee per licensee of 0.7 
percent. Thus the total change in the annual fees for FY 1996 compared 
to FY 1995 is a decrease of 6.4 percent (5.7 percent plus 0.7 percent).
    Second, Footnote 1 of 10 CFR 171.16(d) would be amended to provide 
for a waiver of annual fees for FY 1996 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, 1995, and 
permanently ceased licensed activities entirely by September 30, 1995. 
All other licensees and approval holders who held a license or approval 
on October 1, 1995, are subject to FY 1996 annual fees. This change is 
being made in recognition of the fact that since the final FY 1995 rule 
was published in June 1995, 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 1995 
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, 1995. Similar situations existed after the 
FY 1991-1994 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.
    Third, beginning in FY 1996, the NRC proposes to assess 
Sec. 171.16(d) annual fees, for those materials licenses whose annual 
fees are less than $100,000, based on the anniversary of the date the 
license was originally issued. Accordingly, a new section would be 
added to Sec. 171.19. For example, if the original license was issued 
on June 17, then the anniversary date of that materials license, for 
annual fee purposes, would be June 1 and the licensee would be billed 
in June of each year for the annual fees in effect on the anniversary 
date (the first day of the month that the original license was issued) 
of the license. For FY 1996, those affected materials licenses with a 
license anniversary date between October 1, 1995, and the effective 
date of the final FY 1996 fee rule would be billed upon publication of 
the final rule in the Federal Register and annually thereafter during 
the anniversary month of the license. Those affected materials licenses 
whose license anniversary date is on or after the effective date of the 
final FY 1996 fee rule would be billed during the anniversary month of 
the license and annually thereafter based on the annual fee in effect 
at the time of billing. The specific license categories of materials 
licensees affected by this proposed change are listed in Sec. 171.19(d) 
of this proposed rule.
    Billing certain materials licensees on the anniversary date of the 
license would allow the NRC to make the billing process more efficient 
by distributing the billing and collection of annual fee invoices over 
the entire year. The current practice is to bill over 6,000 materials 
licenses simultaneously during the fiscal year. Section 171.19 would 
also be amended to credit quarterly partial annual fee payments for FY 
1996 already made by certain licensees in FY 1996 either toward their 
total annual fee to be assessed, or to make refunds, if necessary. 
Materials licensees who paid a ``flat'' 10 CFR part 170 renewal fee for 
renewal applications filed in FY 1996 would receive a refund for those 
payments, as appropriate.
    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 annual fees would be 
adjusted by the percentage change (plus or minus) to the NRC's budget 
authority adjusted for NRC offsetting receipts and 

[[Page 2951]]
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 170.12  Payment of fees

    This section would be amended to conform to the streamlining 
changes being proposed by the NRC. Section 170.12(a), which describes 
application fees, would be amended to recognize that the NRC would not 
issue a new license or amendment prior to receipt of the prescribed 
fee. Section 170.12(d), which describes renewal fees, would be amended 
to recognize that materials ``flat'' renewal fees would be eliminated. 
Section 170.12(g), which discusses inspection fees, would be amended to 
recognize that materials ``flat'' inspection fees were eliminated in 
the FY 1995 final rule (60 FR 32218, June 20, 1995).

Section 170.20  Average cost per professional staff hour

    This section would be amended to establish two professional staff-
hour rates based on FY 1996 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 1996 for all 
activities whose fees are based on full cost under Sec. 170.21 would be 
$128 per hour, or $223,314 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 Sec. 170.31 would be $120 per hour, 
or $209,057 per direct FTE. The rates are based on the FY 1996 direct 
FTEs and NRC budgeted costs that are not recovered through the 
appropriation from the NWF. 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, to be included in the hourly rates.

   Table II.--FY 1996 Budget Authority To Be Included in Hourly Rates   
                          [Dollars in millions]                         
------------------------------------------------------------------------
                                                 Reactor      Materials 
                                                 program       program  
------------------------------------------------------------------------
Salary and benefits:                                                    
    Program.................................        $149.6         $46.3
    Allocated agency management and support.          40.9          12.7
                                             ---------------------------
      Subtotal..............................         190.5          59.0
General and administrative support (G&A):                               
    Program travel and other support........          11.7           3.2
    Allocated agency management and support.          69.5          21.5
                                             ---------------------------
      Subtotal..............................          81.2          24.7
Less offsetting receipts....................            .1  ............
                                             ---------------------------
      Total budget included in hourly rate..         271.6          83.7
Program direct FTEs.........................       1,216.2         400.5
Rate per direct FTE.........................     223,314       209,057  
Professional hourly rate....................         128           120  
------------------------------------------------------------------------

    Dividing the $271.6 million budget for the reactor program by the 
number of reactor program direct FTEs (1216.2) results in a rate for 
the reactor program of $223,314 per FTE for FY 1996. Dividing the $83.7 
million budget for the nuclear materials and nuclear waste program by 
the number of program direct FTEs (400.5) results in a rate of $209,057 
per FTE for FY 1996. The Direct FTE Hourly Rate for the reactor program 
is $128 per hour (rounded to the nearest whole dollar). This rate is 
calculated by dividing the cost per direct FTE ($223,314) by the number 
of productive hours in one year (1744 hours) as indicated in OMB 
Circular A-76, ``Performance of Commercial Activities.'' The Direct FTE 
Hourly Rate for the materials program is $120 per hour (rounded to the 
nearest whole dollar). This rate is calculated by dividing the cost per 
direct FTE ($209,057) by the number of productive hours in one year 
(1744 hours). The method used to calculate the FY 1996 hourly rate is 
the same as the method used in the FY 1995 rule. The FY 1996 rate is 
slightly higher than the FY 1995 rate due in part to the increase is 
the Federal pay raise given to all Federal employees in January 1995.

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 1996 
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 Sec. 170.20, for the reactor 

[[Page 2952]]
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 1996 hourly 
rate for the reactor program, as shown in Sec. 170.20. Although the 
average amounts of time needed to review import and export licensing 
applications have not changed, the fees in Sec. 170.21, facility 
Category K, have increased from FY 1995 as a result of the increase in 
the hourly rate.
    For those applications currently on file and pending completion, 
footnote 2 of Sec. 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 Sec. 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 full-cost recovery, would be modified to recover the FY 1996 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 Sec. 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 the increase in the professional hourly 
rate from $116 per hour in FY 1995 to $120 per hour in FY 1996. The 
``flat'' renewal fees for certain materials licenses in Sec. 170.31 
would be eliminated and combined with the materials annual fees in 
Sec. 171.16(d).
    The amounts of the 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 are rounded 
to the nearest $100. Fees under $1,000 are rounded to the nearest $10.
    Fee Category 15, covering the fees for export and import licenses, 
would be amended to include clarifying language that export and import 
of materials includes the export and import of radioactive waste. The 
NRC amended 10 CFR part 110 on July 21, 1995 (60 FR 37556), to require 
specific licenses for the export and import of radioactive waste. The 
final rule became effective August 21, 1995.
    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 revised fees 
in this proposed rule. Although the average amounts of time needed to 
review licensing applications have not changed, the ``flat'' fees in 
Sec. 170.31 have increased from FY 1995 as a result of the increase in 
the hourly rate.
    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 $120, as 
shown in Sec. 170.20, would apply to those professional staff hours 
expended on or after the effective date of the final rule.
Part 171

Section 171.15  Annual Fee: Reactor Operating Licenses

    The annual fees in this section would be revised as described 
below. Paragraph (d) would be removed and reserved and paragraphs (a), 
(b), (c), and (e) would be revised to comply with the requirement of 
OBRA-90 that the NRC recover approximately 100 percent of its budget 
for FY 1996.
    Paragraph (b) would be revised in its entirety to establish the FY 
1996 annual fee for operating power reactors and to change fiscal year 
references from FY 1995 to FY 1996. The fees would be established by 
reducing FY 1995 annual fees (prior to rounding) by 6.4 percent. The 
activities comprising the base FY 1995 annual fee and the FY 1995 
additional charge (surcharge) are listed in paragraphs (b) and (c) and 
continue to be shown for convenience purposes. Paragraphs (c)(1) would 
be revised in its entirety and (c)(2) would be removed and reserved.
    With respect to Big Rock Point, a smaller, older reactor, the NRC 
proposes to grant a partial exemption from the FY 1996 annual fees 
similar to FY 1995 based on a request filed with the NRC in accordance 
with Sec. 171.11.
    Each operating power reactor, except Big Rock Point, would pay an 
annual fee of $2,747,000 in FY 1996.
    Paragraph (d) would be removed and reserved.
    Paragraph (e) would be revised to show the amount of the FY 1996 
annual fee for nonpower (test and research) reactors. In FY 1996, the 
fee is 6.4 percent below the FY 1995 level. The Energy Policy Act of 
1992 established an exemption for certain Federally-owned research 
reactors that are used primarily for educational training and academic 
research purposes, where the design of the reactor satisfies certain 
technical specifications set forth in the legislation. Consistent with 
this legislative requirement, the NRC granted an exemption from annual 
fees for FY 1992 and FY 1993 to the Veterans Administration Medical 
Center in Omaha, Nebraska, the U.S. Geological Survey for its reactor 
in Denver, Colorado, and the Armed Forces Radiobiological Institute in 
Bethesda, Maryland, for its research reactor. This exemption was 
initially codified in the July 20, 1993 (58 FR 38695) final fee rule at 
Sec. 171.11(a) and more recently in the March 17, 1994 (59 FR 12543) 
final rule at Sec. 171.11(a)(2). The NRC amended Sec. 171.11(a)(2) on 
July 20, 1994 (59 FR 36895) to exempt from annual fees the research 
reactor owned by the Rhode Island Atomic Energy Commission. The NRC 
will continue to grant exemptions from the annual fee to Federally-
owned and State-owned research and test reactors that meet the 
exemption criteria specified in Sec. 171.11.

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 

[[Page 2953]]
small entity fees are shown in the proposed rule for convenience.
    Section 171.16(d) would be revised to establish the FY 1996 annual 
fees for materials licensees, including Government agencies, licensed 
by the NRC. These fees were determined by reducing the FY 1995 annual 
fees (prior to rounding) by 6.4 percent.
    For the first time, the NRC is proposing to combine the ``flat'' 
material renewal fees in 10 CFR part 170 with the annual fees in 10 CFR 
part 171. As described in the Federal Register on September 8, 1995 (60 
FR 46784), recent NRC internal reviews and regulatory impact surveys of 
material licensees have highlighted areas in which the current 
materials licensing process can be improved. The NRC has completed the 
preliminary phases of its Business Process Reengineering (BPR) 
initiative to redesign the process of licensing medical, academic, and 
industrial users of byproduct materials as well as with regard to some 
small scope users of source and special nuclear materials. The NRC has 
extended, by rulemaking, certain specific material licenses by five 
years from the current expiration dates of those licenses. Resources 
that would have otherwise been used to renew these licenses would be 
devoted to the BPR project. The NRC is also examining whether to 
permanently change the license duration for materials licenses. The NRC 
estimates that approximately 80 percent of its approximately 6,500 
materials licenses would be extended by the final rulemaking. 
Consistent with this change in license renewals, the NRC is proposing, 
for fee purposes, to combine the materials ``flat'' renewal fees in 10 
CFR part 170 with the annual fees in 10 CFR part 171.
    This action also recognizes that the NRC's ``regulatory service'' 
provided to licensees, as referred to in OBRA-90, is comprised of the 
total regulatory activities that the NRC determines are needed to 
regulate a class of licensees. These regulatory activities include not 
only ``flat'' fee inspections but also research, rulemaking, orders, 
enforcement actions, responses to allegations, incident investigations, 
and other activities necessary to regulate classes of licensees. In 
addition to being consistent with the regulatory service concept of 
OBRA-90, the NRC believes that materials licensees' ``flat'' renewal 
fees can be combined with their annual fees without creating any 
significant questions of fairness. This is because the concept of the 
annual fee, including the renewal fee, has, in effect, already been 
implemented for most materials licensees. First, materials licensees 
currently pay a ``flat fee'' per renewal based on the average cost of a 
renewal for their fee category, and second, the renewal term of five 
years is identical for most materials licensees. Thus, licensees in the 
same materials license fee category already pay essentially the same 
average annual cost for renewals. Further, the average cost will 
decrease to a relatively small amount as a result of the five-year 
extension and potential change in license duration. Therefore, 
combining renewal and annual fees results in essentially the same 
average cost per license over time. This approach would provide 
materials licensees with simpler and more predictable NRC fee charges 
as there would be no additional fees paid for periodic renewals. 
Because certain materials FY 1996 annual fees would include renewals, 
those materials licensees who paid a ``flat'' 10 CFR Part 170 renewal 
fee for renewal applications filed in FY 1996 will be issued a refund, 
as appropriate.
    Beginning in FY 1996, the NRC is also proposing that annual fees 
for most materials licenses be billed on the anniversary date of the 
license (licensees whose annual fees are $100,000 or more would 
continue to be assessed quarterly). The annual fee assessed would be 
the fee in effect on the license anniversary date. The proposal would 
apply 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. Billing most materials licenses on the anniversary date of 
the license would allow the NRC to improve the efficiency of its 
billing process; under this proposal an average of approximately 500 
annual fee invoices would be sent to materials licensees each month. 
The current practice of billing over 6,000 materials licensees 
simultaneously each fiscal year would be eliminated. 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 would be June 1 and the licensee would be 
billed in June of each year for the annual fee in effect on June 1. The 
proposed change to the billing system would mean that during the 
transition period of FY 1996 affected materials licensees with an 
anniversary date falling between October 1, 1995, and the effective 
date of the FY 1996 fee rule would receive a bill payable on the 
effective date of the FY 1996 final rule. Affected materials licensees 
with license anniversary dates falling on or after the effective date 
of the FY 1996 final rule would be billed during their anniversary 
month of their license. Under this proposal, some materials licensees 
would unavoidably receive two annual fee bills during the 12 month 
transition period. For example, a materials licensee who paid its FY 
1996 annual fee bill in April 1996, the planned effective date of the 
FY 1996 fee rule, would receive a bill six months later in October 1996 
(FY 1997) if October is the anniversary month of that materials 
license. In this example, the licensee would pay the same annual fee in 
FY 1997 (October) as he paid in FY 1996 (April). Materials licensees 
would continue to pay fees at the FY 1996 rate in FY 1997 until such 
time as the FY 1997 final fee rule becomes effective. Each bill would 
be for a different fiscal year, therefore, no double billing would 
occur.
    The NRC believes that the efficiencies gained by billing certain 
materials annual fees throughout the year as well as having materials 
licensees know exactly when they will be billed each year for the 
annual fee outweigh the inconveniences that may be caused during the 
transition period. New licenses issued during FY 1996 would receive a 
prorated annual fee in accordance with the current proration provision 
of Sec. 171.17. For example, those new materials licenses issued during 
the period October 1 through March 31 of the FY would be assessed one-
half the annual fee for FY 1996. New materials licenses issued on or 
after April 1, 1996, will not be assessed an annual fee for FY 1996.
    Thereafter, the full annual fee is due and payable each subsequent 
fiscal year on the anniversary date of the license. Beginning with the 
effective date of the FY 1996 final rule, affected licensees would be 
billed and would pay 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.
    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.
    The amount or range of the FY 1996 annual fees for all materials 
licensees is summarized as follows:

[[Page 2954]]


                  Materials Licenses Annual Fee Ranges                  
------------------------------------------------------------------------
         Category of license                      Annual fees           
------------------------------------------------------------------------
Part 70--High enriched fuel facility  $2,404,000.                       
Part 70--Low enriched fuel facility.  $1,180,000.                       
Part 40--UF<INF>6 conversion facility....  $598,100.                         
Part 40--Uranium recovery facilities  $20,600 to $57,000.               
Part 30--Byproduct Material Licenses  $450 to $21,700.\1\               
Part 71--Transportation of            $950 to $72,800.                  
 Radioactive Material.                                                  
Part 72--Independent Storage of       $261,100.                         
 Spent Nuclear Fuel.                                                    
------------------------------------------------------------------------
\1\Excludes the annual fee for a few military ``master'' materials      
  licenses of broad-scope issued to Government agencies, which is       
  $388,600.                                                             

    Section 171.16(e) would be revised in its entirety to indicate the 
activities that were a part of the additional charge (surcharge) 
included in the FY 1995 annual fees. These activities are listed and 
would continue to be shown for convenience.
    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, 1995, and permanently 
ceased licensed activities entirely by September 30, 1995. All other 
licensees and approval holders who held a license or approval on 
October 1, 1995, are subject to the FY 1996 annual fees.

Section 171.19  Payment.

    Paragraph (b) would be revised to give credit for partial payments 
made by certain licensees in FY 1996 toward their FY 1996 annual fees. 
The NRC anticipates that the first, second, and third quarterly 
payments for FY 1996 will have been made by operating power reactor 
licensees and some large materials licensees before the final rule is 
effective. Therefore, the NRC will credit payments received for those 
quarterly annual fee assessments toward the total annual fee to be 
assessed. The NRC will adjust the fourth quarterly bill to recover the 
full amount of the revised annual fee or to make refunds, as necessary. 
The NRC also expects that certain materials licensees will have paid 
renewal fees for renewal applications that were filed in FY 1996, 
whereas this proposed rule includes the renewals in the annual fee. The 
NRC will refund these renewal fee payments, as appropriate. 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 and 
to delete the references concerning payment requirements for those 
licensees whose annual fees are less than $100,000.
    A new paragraph (d) would be added to cover those licensees whose 
fees are less than $100,000 and who would be billed on the anniversary 
date of their license beginning in FY 1996.
    During the past five 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).
    The NRC reinstated the exemption from 10 CFR part 171 annual fees 
for nonprofit educational institutions on April 18, 1994 (59 FR 12539, 
March 17, 1994). In that final rule, the NRC indicated that although 
nonprofit research institutions were not exempt from annual fees, such 
institutions were free to file an exemption request based on the 
``public good'' concept if they felt they could qualify. Several 
nonprofit research institutions have since filed and been granted an 
exemption from the annual fees on that basis. In addition, some Federal 
agencies who hold materials licenses have filed for exemption from 
annual fees based on the public good concept as well. The requests from 
Federal agencies to receive public good exemptions have been denied by 
the NRC. The NRC did not intend to extend public good exemptions to 
Federal agencies. Therefore, the NRC does not intend to grant public 
good exemptions to Federal agencies.

IV. Electronic Access

    Comments on the proposed rule may be submitted through the Internet 
by addressing electronic mail to INTERNET:<a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="e7b4a2a4bea7a9b5a4c9a0a8b1c9">[email protected]</a> 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 

[[Page 2955]]
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 
AXD<a href="/cdn-cgi/l/email-protection#bd8efdd3cfde93dad2cb"><span class="__cf_email__" data-cfemail="0132416f73622f666e77">[email protected]</span></a>.

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. (A discussion of environmental justice can be found in 
Executive Order No. 12898--Federal Actions to Address Environmental 
Justice in Minority Populations and Low-Income Populations, dated 
February 11, 1994.)

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 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 
low-level radioactive waste burial site; and
    (6) The NRC's fees were not arbitrary or capricious.
    With respect to 10 CFR part 171, on November 5, 1990, the Congress 
passed Pub. L. 101-508, the Omnibus Budget Reconciliation Act of 1990 
(OBRA-90) which required that for FYs 1991 through 1995, approximately 
100 percent of the NRC budget authority be recovered through the 
assessment of fees. OBRA-90 was 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 Sec. 171.13, is 
publishing the proposed amount of the FY 1996 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 1996 budget of 
$473.3 million less the amounts collected from Part 170 fees and the 
funds directly appropriated from the NWF to cover the NRC's high level 
waste program;
    (2) The annual fees shall, to the maximum extent practicable, have 
a reasonable relationship to the cost of regulatory services provided 
by the Commission; and
    (3) The annual fees be assessed to those licensees the Commission, 
in its discretion, determines can fairly, equitably, and practicably 
contribute to their payment.
    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).
    10 CFR parts 170 and 171, which established fees based on the FY 
1989 budget, were also legally challenged. As a result of the Supreme 
Court decision in Skinner v. Mid-American Pipeline Co., 109 S. Ct. 1726 
(1989), and the denial of certiorari in Florida Power and Light, all of 
the lawsuits were withdrawn.
    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. 

[[Page 2956]]

    This proposed rule establishes the schedules of fees that are 
necessary to implement the Congressional mandate for FY 1996. The 
proposed rule results in a decrease 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.

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 Sec. 170.12, paragraph (d)(1) is removed and reserved and 
paragraphs (a) and (g) are revised to read as follows:


Sec. 170.12  Payment of fees.

    (a) Application fees. Each application for which a fee is 
prescribed shall be accompanied by a remittance in the full amount of 
the fee. The NRC will not issue a new license or amendment prior to the 
receipt of the prescribed fee. All application fees will be charged 
irrespective of the Commission's disposition of the application or a 
withdrawal of the application.
* * * * *
    (d) * * *
    (1) [Reserved].
* * * * *
    (g) Inspection fees. Fees for all inspections subject to full cost 
recovery will be assessed on a per inspection basis for completed 
inspections and are payable, on a quarterly basis, upon notification by 
the Commission. Inspection costs include preparation time, time on 
site, and documentation time and any associated contractual service 
costs, but exclude the time involved in the processing and issuance of 
a notice of violation or civil penalty.
* * * * *
    3. Section 170.20 is revised to read as follows:


Sec. 170.20  Average cost per professional staff-hour.

    Fees for permits, licenses, amendments, renewals, special projects, 
Part 55 requalification and replacement examinations and tests, other 
required reviews, approvals, and inspections under Secs. 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 (Sec. 170.21 Activities)..................$128 per hour
Nuclear Materials and Nuclear Waste Program (Sec. 170.31 
Activities)...............................................$120 per hour

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


Sec. 170.21  Schedule of fees for production and utilization 
facilities, review of standard referenced design approvals, special 
projects, inspections and import and export licenses.

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

                        Schedule of Facility Fees                       
                     [See footnotes at end of table]                    
------------------------------------------------------------------------
            Facility Categories and Type of Fees              Fees\1\\2\
------------------------------------------------------------------------
                                                                        
      *                   *                   *                   *     
                   *                   *                   *            
K. Import and export licenses:                                          
                                                                        
    Licenses for the import and export only of production               
     and utilization facilities or the export only of                   
     components for production and utilization facilities               
     issued 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........................      $7,800
            Amendment.......................................       7,800
        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........................       4,800
            Amendment.......................................       4,800
        3. Application for export of components requiring               
         foreign government assurances only.                            
            Application--new license........................       3,000
            Amendment.......................................      3,000 

[[Page 2957]]
                                                                        
        4. Application for export of facility components and            
         equipment not requiring Commissioner review,                   
         Executive Branch review, or foreign government                 
         assurances.                                                    
            Application--new license........................       1,200
            Amendment.......................................       1,200
        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 analysis or review. Ame                                
    Amendment...............................................        120 
------------------------------------------------------------------------
\1\Fees will not be charged for orders issued by the Commission pursuant
  to Sec. 2.202 of this chapter or for amendments resulting specifically
  from the requirements of these types of Commission orders. Fees will  
  be charged for approvals issued under a specific exemption provision  
  of the Commission's regulations under Title 10 of the Code of Federal 
  Regulations (e.g., Secs. 50.12, 73.5) and any other sections 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.                                          
\2\Full cost fees will be determined based on the professional staff    
  time and appropriate contractual support services expended. For       
  applications currently on file and for which fees are determined based
  on the full cost expended for the review, the professional staff hours
  expended for the review of the application up to the effective date of
  the final rule will be determined at the professional rates in effect 
  at the time the service was provided. For those applications currently
  on file for which review costs have reached an applicable fee ceiling 
  established by the June 20, 1984, and July 2, 1990, rules but are     
  still pending completion of the review, the cost incurred after any   
  applicable ceiling was reached through January 29, 1989, will not be  
  billed to the applicant. Any professional staff-hours expended above  
  those ceilings on or after January 30, 1989, will be assessed at the  
  applicable rates established by Sec. 170.20, as appropriate, except   
  for topical reports whose costs exceed $50,000. Costs which exceed    
  $50,000 for any topical report, amendment, revision or supplement to a
  topical report completed or under review from January 30, 1989,       
  through August 8, 1991, will not be billed to the applicant. Any      
  professional hours expended on or after August 9, 1991, will be       
  assessed at the applicable rate established in Sec. 170.20. In no     
  event will the total review costs be less than twice the hourly rate  
  shown in Sec. 170.20.                                                 


* * * * * * *
    5. Section 170.31 is revised to read as follows:


Sec. 170.31  Schedule of fees for materials licenses and other 
regulatory services, including inspections, and import and export 
licenses.

    Applicants for materials licenses, import and export licenses, and 
other regulatory services and holders of materials licenses, or import 
and export licenses shall pay fees for the following categories of 
services. This schedule includes fees for health and safety and 
safeguards inspections where applicable.

                       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........................             550
        Amendment.......................................             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 Sec.                 
     150.11 of this chapter, for which the licensee                     
     shall pay the same fees as those for Category                      
     1A:\4\                                                             
        Application--New license........................             600
        Amendment.......................................             290
    E. Licenses 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, heap-leaching, refining uranium mill                
     concentrates to uranium hexafluoride, ore buying                   
     stations, ion exchange facilities and in processing                
     of ores containing source material for extraction                  
     of metals other than uranium or thorium, including                 
     licenses authorizing the possession of byproduct                   
     waste material (tailings) from source material                     
     recovery operations, as well as licenses                           
     authorizing the possession and maintenance of a                    
     facility in a standby mode:                                        
        License, Renewal, Amendment.....................       Full Cost
        Inspections.....................................      Full Cost 

[[Page 2958]]
                                                                        
        (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........................             160
        Amendment.......................................             240
    C. All other source material licenses:                              
        Application--New license........................           2,800
        Amendment.......................................             420
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........................           3,000
        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........................           1,200
        Amendment.......................................             580
    C. Licenses issued pursuant to Secs. 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:                                                
        Application--New license........................           4,100
        Amendment.......................................             520
    D. Licenses and approvals issued pursuant to Secs.                  
     32.72, 32.73, and/or 32.74 of this chapter                         
     authorizing distribution or redistribution of                      
     radiopharmaceuticals, generators, reagent kits and/                
     or sources or devices not involving processing of                  
     byproduct material:                                                
        Application--New license........................           1,500
        Amendment.......................................             430
    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........................          $1,200
        Amendment.......................................             360
    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........................           1,500
        Amendment.......................................             370
    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........................           6,000
        Amendment.......................................             780
    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........................           2,400
        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........................           4,400
        Amendment.......................................             860
    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........................           1,600
        Amendment.......................................             290
    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........................          1,300 

[[Page 2959]]
                                                                        
        Amendment.......................................             310
    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........................           4,300
        Amendment.......................................             660
    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........................           1,500
        Amendment.......................................             610
    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....................           1,900
            Amendment...................................             590
    O. Licenses for possession and use of byproduct                     
     material issued pursuant to part 34 of this chapter                
     for industrial radiography operations:                             
        Application--New license........................           3,900
        Amendment.......................................             720
    P. All other specific byproduct material licenses,                  
     except those in Categories 4A through 9D:                          
        Application--New license........................             550
        Amendment.......................................             300
4. Waste disposal and processing:                                       
    A. Licenses specifically authorizing the receipt of                 
     waste byproduct material, source material, or                      
     special nuclear material from other persons for the                
     purpose of contingency storage or commercial land                  
     disposal by the licensee; or licenses authorizing                  
     contingency storage of low-level radioactive waste                 
     at the site of nuclear power reactors; or licenses                 
     for receipt of waste from other persons for                        
     incineration or other treatment, packaging of                      
     resulting waste and residues, and transfer of                      
     packages to another person authorized to receive or                
     dispose of waste material:                                         
        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........................           3,400
        Amendment.......................................             410
    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........................           1,700
        Amendment.......................................             290
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........................           3,200
        Amendment.......................................             640
    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........................           5,100
        Amendment.......................................             790
7. Human use of byproduct, source, or special nuclear                   
 material:                                                              
    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........................           2,800
        Amendment.......................................             470
    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........................           3,000
        Amendment.......................................             580
    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........................           1,400
        Amendment.......................................             440
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........................            760 

[[Page 2960]]
                                                                        
        Amendment.......................................             350
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........................           3,400
        Amendment--each device..........................           1,200
    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........................           1,700
        Amendment--each device..........................             600
    C. Safety evaluation of sealed sources containing                   
     byproduct material, source material, or special                    
     nuclear material, except reactor fuel, for                         
     commercial distribution:                                           
        Application--each source........................             720
        Amendment--each source..........................             240
    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........................             360
        Amendment--each source..........................             120
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...........................             340
        Amendment.......................................             250
        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
        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                                                              
        Sec. 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 HEU 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.....................           7,800
            Amendment...................................           7,800
        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.....................           4,800
            Amendment...................................           4,800
        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.....................           3,000
            Amendment...................................          3,000 

[[Page 2961]]
                                                                        
        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.....................           1,200
            Amendment...................................           1,200
        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 analysis, review, or                      
         consultations with other agencies or foreign                   
         governments:                                                   
            Amendment...................................             120
16. Reciprocity:                                                        
    Agreement State licensees who conduct activities in                 
     a non-Agreement State under the reciprocity                        
     provisions of 10 CFR 150.20:                                       
        Application (initial filing of Form 241)........           1,100
        Revisions.......................................            200 
------------------------------------------------------------------------
\1\Types of fees--Separate charges, as shown in the schedule, will be   
  assessed for preapplication consultations and reviews and applications
  for new licenses and approvals, issuance of new licenses and          
  approvals, 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 Sec. 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 Sec. 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 Sec. 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.                                    
(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 Sec. 170.20 plus any applicable contractual support 
  services costs incurred. Inspection fees are due upon notification by 
  the Commission in accordance with Sec. 170.12(g).                     
\2\Fees 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.              
\3\Full 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 Sec. 170.20, as appropriate, except   
  for topical reports whose costs exceed $50,000. Costs which exceed    
  $50,000 for each topical report, amendment, revision, or supplement to
  a topical report completed or under review from January 30, 1989,     
  through August 8, 1991, will not be billed to the applicant. Any      
  professional hours expended on or after August 9, 1991, will be       
  assessed at the applicable rate established in Sec. 170.20. The       
  minimum total review cost is twice the hourly rate shown in Sec.      
  170.20.                                                               
\4\Licensees paying fees under Categories 1A, 1B, and 1E are not subject
  to fees under Categories 1C and 1D for sealed sources authorized in   
  the same license except 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.    
\5\Fees will not be assessed for requests/reports submitted to the NRC: 
(a) In response to a Generic Letter or NRC Bulletin that does not result
  in an amendment to the license, does not result in the review of an   
  alternate method or reanalysis to meet the requirements of the Generic
  Letter, or does not involve an unreviewed safety issue;               
(b) In response to an NRC request (at the Associate Office Director     
  level or above) to resolve an identified safety 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.                                              


  
[[Page 2962]]


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. In Sec. 171.15, paragraph (d) is removed and reserved and 
paragraphs (a), (b), (c), and (e) are revised to read as follows:


Sec. 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 
Sec. 171.11 (a)(1) and (a)(2).
    (b) The FY 1996 uniform annual fee for each operating power reactor 
which must be collected by September 30, 1996, is $2,747,000. This fee 
has been determined by adjusting the FY 1995 annual fee downward by 
approximately 6 percent. 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; low-level 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.
* * * * *
    (d) [Reserved].
    (e) The FY 1996 annual fees for licensees authorized to operate a 
nonpower (test and research) reactor licensed under Part 50 of this 
chapter, except for those reactors exempted from fees under 
Sec. 171.11(a), are as follows:

Research reactor................................................$52,900
Test reactor....................................................$52,900

* * * * *
    8. In Sec. 171.16, the introductory text of paragraph (c) and 
paragraphs (c)(1), (c)(4), (d), and (e) are revised to read as follows:


Sec. 171.16  Annual Fees: Materials Licensees, Holders of Certificates 
of Compliance, Holders of Sealed Source and Device Registrations, 
Holders of Quality Assurance Program Approvals and Government agencies 
licensed by the NRC.

* * * * *
    (c) A licensee who is required to pay an annual fee under this 
section may qualify as a small entity. If a licensee qualifies as a 
small entity and provides the Commission with the proper certification, 
the licensee may pay reduced annual fees for FY 1996 as follows:

------------------------------------------------------------------------
                                                               Maximum  
                                                              annual fee
                                                                 per    
                                                               licensed 
                                                               category 
------------------------------------------------------------------------
Small Businesses Not Engaged in Manufacturing and Small Not-            
 For-Profit Organizations (Gross Annual Receipts):                      
  $350,000 to $5 million...................................       $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 1996, 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 1996 annual fees for materials licensees and holders of 
certificates, registrations or approvals subject to fees under this 
section are shown below. The FY 1996 annual fees, which must be 
collected by September 30, 1996, have been determined by adjusting 
downward the FY 1995 annual fees by approximately 6 percent. 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 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]                                        
----------------------------------------------------------------------------------------------------------------
                                                                                                      Annual    
               Category of materials licenses                                                      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                                   $2,404,000
            Nuclear Fuel Services..........................  SNM-124                                   2,404,000
        (b) Low Enriched Uranium in Dispersable Form Used                                                       
         for Fabrication of Power Reactor Fuel:                                                                 
            Combustion Engineering (Hematite)..............  SNM-33                                    1,180,000

[[Page 2963]]
                                                                                                                
            General Electric Company.......................  SNM-1097                                  1,180,000
            Siemens Nuclear Power..........................  SNM-1227                                  1,180,000
            Westinghouse Electric Company..................  SNM-1107                                  1,180,000
    (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                                    469,400
        (b) All Others:                                                                                         
            General Electric...............................  SNM-960                                     318,800
    B. Licenses for receipt and storage of spent fuel at an  261,100                                            
     independent spent fuel storage installation (ISFSI).                                                       
    C. Licenses for possession and use of special nuclear    1,200                                              
     material in sealed sources contained in devices used                                                       
     in industrial measuring systems, including x-ray                                                           
     fluorescence analyzers.                                                                                    
    D. All other special nuclear material licenses, except   2,800                                              
     licenses authorizing special nuclear material in                                                           
     unsealed form in combination that would constitute a                                                       
     critical quantity, as defined in Sec. 150.11 of this                                                       
     chapter, for which the licensee shall pay the same                                                         
     fees as those for Category 1.A.(2).                                                                        
    E. Licenses for the operation of a uranium enrichment    \11\N/A                                            
     facility.                                                                                                  
2. Source material:                                                                                             
    A.(1) Licenses for possession and use of source          598,100                                            
     material for refining uranium mill concentrates to                                                         
     uranium hexafluoride.                                                                                      
    (2) Licenses for possession and use of source material                                                      
     in recovery operations such as milling, in-situ                                                            
     leaching, heap-leaching, ore buying stations, ion                                                          
     exchange facilities and in processing of ores                                                              
     containing source material for extraction of metals                                                        
     other than uranium or thorium, including licenses                                                          
     authorizing the possession of byproduct waste material                                                     
     (tailings) from source material recovery operations,                                                       
     as well as licenses authorizing the possession and                                                         
     maintenance of a facility in a standby mode..                                                              
        Class I facilities\4\..............................  57,000                                             
        Class II facilities\4\.............................  32,200                                             
        Other facilities\4\................................  20,600                                             
    (3) Licenses that authorize the receipt of byproduct     41,800                                             
     material, as defined in Section 11e.(2) of the Atomic                                                      
     Energy Act, from other persons for possession and                                                          
     disposal, except those licenses subject to the fees in                                                     
     Category 2.A.(2) or Category 2.A.(4).                                                                      
    (4) Licenses that authorize the receipt of byproduct     7,400                                              
     material, as defined in Section 11e(2) of the Atomic                                                       
     Energy Act, from other persons for possession and                                                          
     disposal incidental to the disposal of the uranium                                                         
     waste tailings generated by the licensee's milling                                                         
     operations, except those licenses subject to the fees                                                      
     in Category 2.A.(2).                                                                                       
    B. Licenses which authorize only the possession, use     450                                                
     and/or installation of source material for shielding.                                                      
    C. All other source material licenses..................  8,100                                              
3. Byproduct material:                                                                                          
    A. Licenses of broad scope for possession and use of     15,400                                             
     byproduct material issued pursuant to parts 30 and 33                                                      
     of this chapter for processing or manufacturing of                                                         
     items containing byproduct material for commercial                                                         
     distribution.                                                                                              
    B. Other licenses for possession and use of byproduct    5,200                                              
     material issued pursuant to part 30 of this chapter                                                        
     for processing or manufacturing of items containing                                                        
     byproduct material for commercial distribution.                                                            
    C. Licenses issued pursuant to Secs. 32.72, 32.73, and/  10,400                                             
     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.                                                                                                   
    D. Licenses and approvals issued pursuant to Secs.       4,100                                              
     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 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..                                                                             
    E. Licenses for possession and use of byproduct          2,900                                              
     material in sealed sources for irradiation of                                                              
     materials in which the source is not removed from its                                                      
     shield (self-shielded units).                                                                              
    F. Licenses for possession and use of less than 10,000   3,500                                              
     curies of byproduct material in sealed sources for                                                         
     irradiation of materials in which the source is                                                            
     exposed for irradiation purposes. This category also                                                       
     includes underwater irradiators for irradiation of                                                         
     materials in which the source is not exposed for                                                           
     irradiation purposes.                                                                                      
    G. Licenses for possession and use of 10,000 curies or   18,200                                             
     more of byproduct material in sealed sources for                                                           
     irradiation of materials in which the source is                                                            
     exposed for irradiation purposes. This category also                                                       
     includes underwater irradiators for irradiation of                                                         
     materials in which the source is not exposed for                                                           
     irradiation purposes.                                                                                      
    H. Licenses issued pursuant to subpart A of part 32 of   4,600                                              
     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.                                                                   

[[Page 2964]]
                                                                                                                
    I. Licenses issued pursuant to subpart A of part 32 of   8,200                                              
     this chapter to distribute items containing byproduct                                                      
     material or quantities of byproduct material that do                                                       
     not require device evaluation to persons exempt from                                                       
     the licensing requirements of part 30 of this chapter,                                                     
     except for specific licenses authorizing                                                                   
     redistribution of items that have been authorized for                                                      
     distribution to persons exempt from the licensing                                                          
     requirements of part 30 of this chapter.                                                                   
    J. Licenses issued pursuant to subpart B of part 32 of   3,500                                              
     this chapter to distribute items containing byproduct                                                      
     material that require sealed source and/or device                                                          
     review to persons generally licensed under part 31 of                                                      
     this chapter, except specific licenses authorizing                                                         
     redistribution of items that have been authorized for                                                      
     distribution to persons generally licensed under part                                                      
     31 of this chapter.                                                                                        
    K. Licenses issued pursuant to subpart B of part 31 of   3,000                                              
     this chapter to distribute items containing byproduct                                                      
     material or quantities of byproduct material that do                                                       
     not require sealed source and/or device review to                                                          
     persons generally licensed under part 31 of this                                                           
     chapter, except specific licenses authorizing                                                              
     redistribution of items that have been authorized for                                                      
     distribution to persons generally licensed under part                                                      
     31 of this chapter.                                                                                        
    L. Licenses of broad scope for possession and use of     11,400                                             
     byproduct material issued pursuant to parts 30 and 33                                                      
     of this chapter for research and development that do                                                       
     not authorize commercial distribution.                                                                     
    M. Other licenses for possession and use of byproduct    5,100                                              
     material issued pursuant to part 30 of this chapter                                                        
     for research and development that do not authorize                                                         
     commercial distribution.                                                                                   
    N. Licenses that authorize services for other                                                               
     licensees, except:                                                                                         
        (1) Licenses that authorize only calibration and/or                                                     
         leak testing services are subject to the fees                                                          
         specified in fee Category 3P; and                                                                      
        (2) Licenses that authorize waste disposal services  5,600                                              
         are subject to the fees specified in fee                                                               
         Categories 4A, 4B, and 4C.                                                                             
    O. Licenses for possession and use of byproduct          13,000                                             
     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.                                                       
    P. All other specific byproduct material licenses,       1,600                                              
     except those in Categories 4A through 9D.                                                                  
4. Waste disposal and processing:                                                                               
    A. Licenses specifically authorizing the receipt of      94,400                                             
     waste byproduct material, source material, or special                                                      
     nuclear material from other persons for the purpose of                                                     
     contingency storage or commercial land disposal by the                                                     
     licensee; or licenses authorizing contingency storage                                                      
     of low-level radioactive waste at the site of nuclear                                                      
     power reactors; or licenses for receipt of waste from                                                      
     other persons for incineration or other treatment,                                                         
     packaging of resulting waste and residues, and                                                             
     transfer of packages to another person authorized to                                                       
     receive or dispose of waste material.                                                                      
    B. Licenses specifically authorizing the receipt of      13,300                                             
     waste byproduct material, source material, or special                                                      
     nuclear material from other persons for the purpose of                                                     
     packaging or repackaging the material. The licensee                                                        
     will dispose of the material by transfer to another                                                        
     person authorized to receive or dispose of the                                                             
     material.                                                                                                  
    C. Licenses specifically authorizing the receipt of      7,100                                              
     prepackaged waste byproduct material, source material,                                                     
     or special nuclear material from other persons. The                                                        
     licensee will dispose of the material by transfer to                                                       
     another person authorized to receive or dispose of the                                                     
     material.                                                                                                  
5. Well logging:                                                                                                
    A. Licenses for possession and use of byproduct          7,500                                              
     material, source material, and/or special nuclear                                                          
     material for well logging, well surveys, and tracer                                                        
     studies other than field flooding tracer studies.                                                          
    B. Licenses for possession and use of byproduct          12,200                                             
     material for field flooding tracer studies.                                                                
6. Nuclear laundries:                                                                                           
    A. Licenses for commercial collection and laundry of     13,600                                             
     items contaminated with byproduct material, source                                                         
     material, or special nuclear material.                                                                     
7. Human use of byproduct, source, or special nuclear                                                           
 material:                                                                                                      
    A. Licenses issued pursuant to parts 30, 35, 40, and 70  9,500                                              
     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.                                                                                              
    B. Licenses of broad scope issued to medical             21,700                                             
     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<SUP>9.                                                                      
    C. Other licenses issued pursuant to parts 30, 35, 40,   4,300                                              
     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<SUP>9.                                                                                             
8. Civil defense:                                                                                               
    A. Licenses for possession and use of byproduct          1,600                                              
     material, source material, or special nuclear material                                                     
     for civil defense activities.                                                                              
9. Device, product, or sealed source safety evaluation:                                                         
    A. Registrations issued for the safety evaluation of     6,700                                              
     devices or products containing byproduct material,                                                         
     source material, or special nuclear material, except                                                       
     reactor fuel devices, for commercial distribution.                                                         

[[Page 2965]]
                                                                                                                
    B. Registrations issued for the safety evaluation of     3,400                                              
     devices or products containing byproduct material,                                                         
     source material, or special nuclear material                                                               
     manufactured in accordance with the unique                                                                 
     specifications of, and for use by, a single applicant,                                                     
     except reactor fuel devices.                                                                               
    C. Registrations issued for the safety evaluation of     1,400                                              
     sealed sources containing byproduct material, source                                                       
     material, or special nuclear material, except reactor                                                      
     fuel, for commercial distribution.                                                                         
    D. Registrations issued for the safety evaluation of     720                                                
     sealed sources containing byproduct material, source                                                       
     material, or special nuclear material, manufactured in                                                     
     accordance with the unique specifications of, and for                                                      
     use by, a single applicant, except reactor fuel.                                                           
10. Transportation of radioactive material:                                                                     
    A. Certificates of Compliance or other package                                                              
     approvals issued for design of casks, packages, and                                                        
     shipping containers.                                                                                       
        Spent Fuel, High-Level Waste, and..................  <SUP>6N/A                                               
        Other Casks........................................  <SUP>6N/A                                               
    B. Approvals issued of 10 CFR part 71 quality assurance                                                     
     programs.                                                                                                  
        Users and Fabricators..............................  72,800                                             
        Users..............................................  950                                                
11. Standardized spent fuel facilities.....................  <SUP>6N/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   261,100                                            
     CFR 72.210.                                                                                                
14. Byproduct, source, or special nuclear material licenses  \7\N/A                                             
 and other approvals authorizing decommissioning,                                                               
 decontamination, reclamation, or site restoration                                                              
 activities pursuant to 10 CFR parts 30, 40, 70, and 72.                                                        
15. Import and Export licenses.............................  \8\N/A                                             
16. Reciprocity............................................  \8\N/A                                             
17. Master materials licenses of broad scope issued to       388,600                                            
 Government agencies.                                                                                           
18. Department of Energy:                                                                                       
    A. Certificates of Compliance..........................  \10\1,078,000                        ..............
    B. Uranium Mill Tailing Radiation Control Act (UMTRCA)   1,813,000                                          
     activities.                                                                                                
----------------------------------------------------------------------------------------------------------------
\1\Annual fees will be assessed based on whether a licensee held a valid license with the NRC authorizing       
  possession and use of radioactive material during the fiscal year. However, the annual fee is waived for those
  materials licenses and holders of certificates, registrations, and approvals who either filed for termination 
  of their licenses or approvals or filed for possession only/storage licenses prior to October 1, 1995, and    
  permanently ceased licensed activities entirely by September 30, 1995. 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 Sec. 171.17. If a person  
  holds more than one license, certificate, registration, or approval, the annual fee(s) will be assessed for   
  each license, certificate, registration, or approval held by that person. For licenses that authorize more    
  than one activity on a single license (e.g., human use and irradiator activities), annual fees will be        
  assessed for each category applicable to the license. Licensees paying annual fees under Category 1.A. (1).   
  are not subject to the annual fees of Category 1.C and 1.D for sealed sources authorized in the license.      
\2\Payment of the prescribed annual fee does not automatically renew the license, certificate, registration, or 
  approval for which the fee is paid. Renewal applications must be filed in accordance with the requirements of 
  parts 30, 40, 70, 71, or 72 of this chapter.                                                                  
\3\For FYs 1997 and 1998, fees for these materials licenses will be calculated and assessed in accordance with  
  Sec. 171.13 and will be published in the Federal Register for notice and comments.                            
\4\A Class I license includes mill licenses issued for the extraction of uranium from uranium ore. A Class II   
  license includes solution mining licenses (in-situ and heap leach) issued for the extraction of uranium from  
  uranium ores including research and development licenses. An ``other'' license includes licenses for          
  extraction of metals, heavy metals, and rare earths.                                                          
\5\Two 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.                                                                                     
\6\Standardized 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.                                                                              
\9\Separate annual fees will not be assessed for pacemaker licenses issued to medical institutions who also hold
  nuclear medicine licenses under Categories 7B or 7C.                                                          
\10\This includes Certificates of Compliance issued to DOE that are not under the Nuclear Waste Fund.           
\11\No annual fee has been established because there are currently no licensees in this particular fee category.


    (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.
* * * * *
    9. In Sec. 171.19, paragraphs (b) and (c) are revised and a new 
paragraph (d) is added to read as follows:


Sec. 171.19  Payment.

* * * * *
    (b) For FY 1996 through FY 1998, the Commission will adjust the 
fourth quarterly bill for operating power 

[[Page 2966]]
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. The NRC will refund any ``flat'' materials renewal 
fees payments received for renewal applications filed in FY 1996, as 
appropriate. 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 upon publication of the final rule or 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 1996 through 1998, annual fees in the amount of 
$100,000 or more and described in the Federal Register notice pursuant 
to Sec. 171.13 must be paid in quarterly installments of 25 percent as 
billed by the NRC. The quarters begin on October 1, January 1, April 1, 
and July 1 of each fiscal year.
    (d) For FYs 1996 through 1998, annual fees of less than $100,000 
must be paid as billed by the NRC. Beginning in FY 1996, materials 
license annual fees that are less than $100,000 will be billed on the 
anniversary of the license. The materials licensees that would be 
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. During the transition year 
of FY 1996, licensees with license anniversary dates falling between 
October 1 and the effective date of the FY 1996 final rule would 
receive an annual fee bill payable on the effective date of the final 
rule, and licensees with license anniversary dates that fall on or 
after the effective date of the final rule would be billed on the 
anniversary of their license. Starting with the effective date of the 
FY 1996 final rule, licensees that are billed on the license 
anniversary date would be assessed the annual fee in effect on the 
anniversary date of the license.

    Dated at Rockville, MD, this 19th day of January, 1996.

    For the Nuclear Regulatory Commission.
James M. Taylor,
Executive Director for Operations.

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 (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 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 fee rule 
and proposes to continue their use in this FY 1996 proposed rule. 
The small entity fee categories in Sec. 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 the proposal to continue these 
actions would reduce the impact of annual fees on small businesses 
in FY 1996. The NRC size standards are codified at 10 CFR 2.810.
    Pub. L. 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 and the 
amount to be collected in FY 1996 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) 
and in FY 1995 (60 FR 32218, June 20, 1995) 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 1991-1995.
    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 receipts as well as an adjustment for the number of 
licensees paying the fees. As a result, the NRC is proposing that 
the FY 1996 annual fees for all licensees be established at 6.4 
percent below the FY 1995 annual fees. The NRC believes that the 
proposed 6.4 percent downward adjustment to the FY 1995 annual fees 
is not a substantial enough change to warrant establishing a new 
baseline for FY 1996. Therefore, the NRC is proposing to establish 
the FY 1996 annual fees for all licensees at a level of about 6 
percent below the FY 1995 fees.
    The NRC is also proposing to continue the streamlining of the 
fee structure and process for materials licenses which began in FY 
1995. Two changes are being proposed in this area.
    First, the NRC is proposing to assess annual fees for certain 
materials licenses on 

[[Page 2967]]
the anniversary date of the license. Billing certain materials licenses 
on the anniversary date of the license would allow NRC to make 
improved efficiencies in the billing process whereby approximately 
500 annual fee invoices would be sent to materials licensees each 
month. The current practice of billing over 6,000 materials 
licensees at the same time in the fiscal year would be eliminated. 
The NRC believes that the efficiencies gained by billing certain 
materials annual fees on a monthly basis as well as materials 
licensees knowing exactly when they will be billed each year for the 
annual fee outweigh the inconveniences that may be caused during the 
FY 1996 transition period.
    Second, the NRC is proposing to further streamline the materials 
fee program and improve the predictability of fees by eliminating 
the materials ``flat'' renewal fees in Sec. 170.31. This proposed 
action is consistent with the NRC's recent Business Process 
Reengineering initiative to extend the duration of certain materials 
licenses. The NRC published a proposed rule in the Federal Register 
on September 8, 1995, explaining this initiative (60 FR 46784). In 
the proposed rule, certain materials licenses would be extended for 
five years beyond their expiration date. Additionally, comments were 
requested on the general topic of the appropriate duration of 
licenses. A final rule was published in the Federal Register on 
January 16, 1996 (61 FR 1109).

II. Impact on Small Entities

    The comments received on the proposed FY 1991-1995 fee rule 
revisions and the small entity certifications received in response 
to the final FY 1991-1995 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 18 percent (approximately 1,300 
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 well-logging 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 high-volume 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 two-
person 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 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) and in the FY 1995 rule (60 FR 32218, June 20, 1995). 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 1991-1995 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 continuing for FY 1996, 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 
1996, 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 1996, 
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 1996 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. Therefore, the 
NRC is continuing, for FY 1996, 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 1992-1995, the NRC 
is continuing 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.

[[Page 2968]]


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 revised 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 1991-1995 rules remain valid for 
this proposed rule for FY 1996.

[FR Doc. 96-1524 Filed 1-29-96; 8:45 am]
BILLING CODE 7590-01-P

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