This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

2948

Vol. 61, No. 20

Tuesday, January 30, 1996

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.
Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules 2949

FY 1995 annual feeFY 1996 annual 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

UF6 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

§ 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 § 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

§ 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 §§ 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 § 170.31

and to amend § 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 § 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 § 170.31

and amend § 170.12 accordingly; and (4)

amend Category 15 in § 170.31 to make
2950 Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules

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 §§ 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 § 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 § 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

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

program

Materials

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 § 170.20, for the reactor
2952 Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules

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 § 170.20.

Although the average amounts of time

needed to review import and export

licensing applications have not

changed, the fees in § 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 § 170.21 would be revised to provide

that professional hours expended up to

the effective date of the final rule will

be assessed at the professional rates in

effect at the time the service was

rendered. For topical report applications

currently on file that are still pending

completion of the review, and for which

review costs have reached the

applicable fee ceiling established by the

July 2, 1990 rule, the costs incurred after

any applicable ceiling was reached

through August 8, 1991, will not be

billed to the applicant. Any professional

hours expended for the review of topical

report applications, amendments,

revisions, or supplements to a topical

report on or after August 9, 1991, are

assessed at the applicable rate

established by § 170.20.

Section 170.31 Schedule of Fees for

Materials Licenses and Other Regulatory

Services, Including Inspections and

Import and Export Licenses

The licensing and inspection fees in

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

recover the FY 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 § 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 § 170.31 would be

eliminated and combined with the

materials annual fees in § 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 § 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 § 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 § 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 Federallyowned 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 § 171.11(a) and more recently in

the March 17, 1994 (59 FR 12543) final

rule at § 171.11(a)(2). The NRC amended

§ 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 § 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
Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules 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 § 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:
2954 Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules

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—UF6 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 Radioactive Material.$950 to $72,800.

Part 72—Independent

Storage of Spent

Nuclear Fuel.

$261,100.

1Excludes 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:SECY@NRC.GOV.

Comments may also be submitted

electronically, in either ASCII text or

WordPerfect format (version 5.1 or

later), by calling the NRC Electronic

Rulemaking Bulletin Board (BBS) on

FEDWORLD.

The BBS is an electronic information

system operated by the National

Technical Information Service of the

Department of Commerce. The purpose

of this BBS is to facilitate public

participation in the NRC regulatory

process, particularly rulemakings. This

proposed rulemaking is available for

review and comment on the BBS. The

BBS may be accessed using a personal

computer, a modem, and one of the

commonly available communications

software packages, or directly via the

Internet.

The NRC rulemaking bulletin board

(rulemaking subsystem) on FEDWORLD

can be accessed directly by using a

personal computer and modem, and

dialing the toll free number 1–800–303–

9672. Communication software

parameters should be set as follows:

parity to none, data bits to 8, and stop

bits to 1 (N,8,1). Using ANSI or VT–100

terminal emulation, the NRC

rulemaking subsystem can then be

accessed by selecting the ‘‘Rules Menu’’

option from the ‘‘NRC Main Menu.’’ For

further information about options

available for NRC at FEDWORLD

consult the ‘‘Help/Information Center’’

from the ‘‘NRC Main Menu.’’ Users will

find the ‘‘FEDWORLD Online User’s

Guides’’ particularly helpful.

The NRC subsystem on FEDWORLD

also can be accessed by a direct dial

phone number for the main FEDWORLD

BBS at 703–321–3339, or by using

Telnet via Internet: fedworld.gov. Using

the 703 number to contact FEDWORLD,

the NRC subsystem will be accessed

from the main FEDWORLD menu by

selecting the ‘‘Regulatory, Government

Administration and State Systems,’’

then selecting ‘‘Regulatory Information

Mall.’’ At that point, a menu will be

displayed that has the option ‘‘U.S.

Nuclear Regulatory Commission’’ that

will take you to the NRC Online main

menu. The NRC Online area also can be

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

a FEDWORLD command line. If you

access NRC from FEDWORLD’s main

menu, you may return to FEDWORLD
Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules 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 AXD3@nrc.gov.

V. Environmental Impact: Categorical

Exclusion

The NRC has determined that this

proposed rule is the type of action

described in categorical exclusion 10

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

environmental impact statement nor an

environmental impact assessment has

been prepared for the proposed

regulation. By its very nature, this

regulatory action does not affect the

environment, and therefore, no

environmental justice issues are raised.

(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 lowlevel radioactive waste burial site; and

(6) The NRC’s fees were not arbitrary

or capricious.

With respect to 10 CFR part 171, on

November 5, 1990, the Congress passed

Pub. L. 101–508, the Omnibus Budget

Reconciliation Act of 1990 (OBRA–90)

which required that for FYs 1991

through 1995, approximately 100

percent of the NRC budget authority be

recovered through the assessment of

fees. OBRA–90 was amended in 1993 to

extend the 100 percent fee recovery

requirement for NRC through FY 1998.

To accomplish this statutory

requirement, the NRC, in accordance

with § 171.13, is publishing the

proposed amount of the FY 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.
2956 Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules

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 § 170.12, paragraph (d)(1) is

removed and reserved and paragraphs

(a) and (g) are revised to read as follows:

§ 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:

§ 170.20 Average cost per professional

staff-hour.

Fees for permits, licenses,

amendments, renewals, special projects,

Part 55 requalification and replacement

examinations and tests, other required

reviews, approvals, and inspections

under §§ 170.21 and 170.31 that are

based upon the full costs for the review

or inspection will be calculated using

the following applicable professional

staff-hour rates:

Reactor Program (§ 170.21 Activities)

..............................................$128 per hour

Nuclear Materials and Nuclear Waste

Program (§ 170.31 Activities).......$120 per

hour

4. In § 170.21, the introductory text,

Category K, and footnotes 1 and 2 to the

table are revised to read as follows:

§ 170.21 Schedule of fees for production

and utilization facilities, review of standard

referenced design approvals, special

projects, inspections and import and export

licenses.

Applicants for construction permits,

manufacturing licenses, operating

licenses, import and export licenses,

approvals of facility standard reference

designs, requalification and replacement

examinations for reactor operators, and

special projects and holders of

construction permits, licenses, and

other approvals shall pay fees for the

following categories of services.

SCHEDULE OF FACILITY FEES

[See footnotes at end of table]

Facility Categories and Type of Fees 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
Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules 2957

SCHEDULE OF FACILITY FEES—Continued

[See footnotes at end of table]

Facility Categories and Type of Fees Fees 1 2

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

1Fees will not be charged for orders issued by the Commission pursuant to § 2.202 of this chapter or for amendments resulting specifically

from the requirements of these types of Commission orders. Fees will be charged for approvals issued under a specific exemption provision of

the Commission’s regulations under Title 10 of the Code of Federal Regulations (e.g., §§ 50.12, 73.5) and any other sections now or hereafter in

effect regardless of whether the approval is in the form of a license amendment, letter of approval, safety evaluation report, or other form. Fees

for licenses in this schedule that are initially issued for less than full power are based on review through the issuance of a full power license

(generally full power is considered 100 percent of the facility’s full rated power). Thus, if a licensee received a low power license or a temporary

license for less than full power and subsequently receives full power authority (by way of license amendment or otherwise), the total costs for the

license will be determined through that period when authority is granted for full power operation. If a situation arises in which the Commission determines that full operating power for a particular facility should be less than 100 percent of full rated power, the total costs for the license will be

at that determined lower operating power level and not at the 100 percent capacity. 2Full cost fees will be determined based on the professional staff time and appropriate contractual support services expended. For applications

currently on file and for which fees are determined based on the full cost expended for the review, the professional staff hours expended for the

review of the application up to the effective date of the final rule will be determined at the professional rates in effect at the time the service was

provided. For those applications currently on file for which review costs have reached an applicable fee ceiling established by the June 20, 1984,

and July 2, 1990, rules but are still pending completion of the review, the cost incurred after any applicable ceiling was reached through January

29, 1989, will not be billed to the applicant. Any professional staff-hours expended above those ceilings on or after January 30, 1989, will be assessed at the applicable rates established by § 170.20, as appropriate, except for topical reports whose costs exceed $50,000. Costs which exceed $50,000 for any topical report, amendment, revision or supplement to a topical report completed or under review from January 30, 1989,

through August 8, 1991, will not be billed to the applicant. Any professional hours expended on or after August 9, 1991, will be assessed at the

applicable rate established in § 170.20. In no event will the total review costs be less than twice the hourly rate shown in § 170.20.

* * * * * * *

5. Section 170.31 is revised to read as follows:

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

Applicants for materials licenses, import and export licenses, and other regulatory services and holders of materials

licenses, or import and export licenses shall pay fees for the following categories of services. This schedule includes

fees for health and safety and safeguards inspections where applicable.

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 § 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, heapleaching, refining uranium mill concentrates to uranium hexafluoride, ore buying stations, ion exchange facilities and in

processing of ores containing source material for extraction of metals other than uranium or thorium, including licenses

authorizing the possession of byproduct waste material (tailings) from source material recovery operations, as well as licenses authorizing the possession and maintenance of a facility in a standby mode:

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

Inspections ............................................................................................................................................................................. Full Cost
2958 Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules

SCHEDULE OF MATERIALS FEES—Continued

[See footnotes at end of table]

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

(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 §§ 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 §§ 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
Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules 2959

SCHEDULE OF MATERIALS FEES—Continued

[See footnotes at end of table]

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

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
2960 Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules

SCHEDULE OF MATERIALS FEES—Continued

[See footnotes at end of table]

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

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

§ 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
Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules 2961

SCHEDULE OF MATERIALS FEES—Continued

[See footnotes at end of table]

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

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

1Types of fees—Separate charges, as shown in the schedule, will be assessed for preapplication consultations and reviews and applications

for new licenses and approvals, issuance of new licenses and approvals, amendments and certain renewals to existing licenses and approvals,

safety evaluations of sealed sources and devices, and certain inspections. The following guidelines apply to these charges:

(a) Application fees. Applications for new materials licenses and approvals; applications to reinstate expired, terminated or inactive licenses

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

(1) Applications for licenses covering more than one fee category of special nuclear material or source material must be accompanied by the

prescribed application fee for the highest fee category; and

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

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

to full cost fees (fee Categories 1A, 1B, 1E, 2A, 4A, 5B, 10A, 11, 12, 13A, and 14) are due upon notification by the Commission in accordance

with § 170.12(b), (e), and (f).

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

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

(d) Amendment/Revision Fees.

(1) Applications for amendments to licenses and approvals and revisions to reciprocity initial applications, except those subject to fees assessed at full costs, must be accompanied by the prescribed amendment/revision fee for each license/revision affected. An application for an

amendment to a license or approval classified in more than one fee category must be accompanied by the prescribed amendment fee for the

category affected by the amendment unless the amendment is applicable to two or more fee categories in which case the amendment fee for the

highest fee category would apply. For those licenses and approvals subject to full costs (fee Categories 1A, 1B, 1E, 2A, 4A, 5B, 10A, 11, 12,

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

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

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

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

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

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

not subject to fees.

(e) Inspection fees. Inspections resulting from investigations conducted by the Office of Investigations and nonroutine inspections that result

from third-party allegations are not subject to fees. The fees assessed at full cost will be determined based on the professional staff time required to conduct the inspection multiplied by the rate established under § 170.20 plus any applicable contractual support services costs incurred.

Inspection fees are due upon notification by the Commission in accordance with § 170.12(g). 2Fees will not be charged for orders issued by the Commission pursuant to 10 CFR 2.202 or for amendments resulting specifically from the requirements of these types of Commission orders. However, fees will be charged for approvals issued under a specific exemption provision of the

Commission’s regulations under Title 10 of the Code of Federal Regulations (e.g., 10 CFR 30.11, 40.14, 70.14, 73.5, and any other sections now

or hereafter in effect) regardless of whether the approval is in the form of a license amendment, letter of approval, safety evaluation report, or

other form. In addition to the fee shown, an applicant may be assessed an additional fee for sealed source and device evaluations as shown in

Categories 9A through 9D. 3Full cost fees will be determined based on the professional staff time and appropriate contractual support services expended. For those applications currently on file and for which fees are determined based on the full cost expended for the review, the professional staff hours expended

for the review of the application up to the effective date of the final rule will be determined at the professional rates in effect at the time the service was provided. For applications currently on file for which review costs have reached an applicable fee ceiling established by the June 20,

1984, and July 2, 1990, rules, but are still pending completion of the review, the cost incurred after any applicable ceiling was reached through

January 29, 1989, will not be billed to the applicant. Any professional staff-hours expended above those ceilings on or after January 30, 1989,

will be assessed at the applicable rates established by § 170.20, as appropriate, except for topical reports whose costs exceed $50,000. Costs

which exceed $50,000 for each topical report, amendment, revision, or supplement to a topical report completed or under review from January

30, 1989, through August 8, 1991, will not be billed to the applicant. Any professional hours expended on or after August 9, 1991, will be assessed at the applicable rate established in § 170.20. The minimum total review cost is twice the hourly rate shown in § 170.20. 4 Licensees paying fees under Categories 1A, 1B, and 1E are not subject to fees under Categories 1C and 1D for sealed sources authorized

in the same license except in those instances in which an application deals only with the sealed sources authorized by the license. Applicants for

new licenses that cover both byproduct material and special nuclear material in sealed sources for use in gauging devices will pay the appropriate application fee for fee Category 1C only. 5Fees will not be assessed for requests/reports submitted to the NRC:

(a) In response to a Generic Letter or NRC Bulletin that does not result in an amendment to the license, does not result in the review of an alternate method or reanalysis to meet the requirements of the Generic Letter, or does not involve an unreviewed safety issue;

(b) In response to an NRC request (at the Associate Office Director level or above) to resolve an identified safety or environmental issue, or to

assist NRC in developing a rule, regulatory guide, policy statement, generic letter, or bulletin; or

(c) As a means of exchanging information between industry organizations and the NRC for the purpose of supporting generic regulatory improvements or efforts.
2962 Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules

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 § 171.15, paragraph (d) is

removed and reserved and paragraphs

(a), (b), (c), and (e) are revised to read

as follows:

§ 171.15 Annual Fees: Reactor operating

licenses.

(a) Each person licensed to operate a

power, test, or research reactor shall pay

the annual fee for each unit for which

the person holds an operating license at

any time during the Federal FY in

which the fee is due, except for those

test and research reactors exempted in

§ 171.11 (a)(1) and (a)(2).

(b) The FY 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; lowlevel waste disposal generic activities;

uranium enrichment generic activities;

and

(2) Activities not currently assessed

under 10 CFR Part 170 licensing and

inspection fees based on existing

Commission policy, e.g., reviews and

inspections conducted of nonprofit

educational institutions, and costs that

would not be collected from small

entities based on Commission policy in

accordance with the Regulatory

Flexibility Act.

* * * * *

(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 § 171.11(a), are as follows:

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

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

* * * * *

8. In § 171.16, the introductory text of

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

(c)(4), (d), and (e) are revised to read as

follows:

§ 171.16 Annual Fees: Materials

Licensees, Holders of Certificates of

Compliance, Holders of Sealed Source and

Device Registrations, Holders of Quality

Assurance Program Approvals and

Government agencies licensed by the NRC.

* * * * *

(c) A licensee who is required to pay

an annual fee under this section may

qualify as a small entity. If a licensee

qualifies as a small entity and provides

the Commission with the proper

certification, the licensee may pay

reduced annual fees for FY 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]

Category of materials licenses Annual

fees 1 2 3

1. Special nuclear material:

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

(a) Strategic Special Nuclear Material:

Babcock & Wilcox ................................................................................................................................ SNM–42 $2,404,000

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
Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules 2963

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

[See footnotes at end of table]

Category of materials licenses Annual

fees 1 2 3

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 independent spent fuel storage installation (ISFSI) .. 261,100

C. Licenses for possession and use of special nuclear material in sealed sources contained in devices

used in industrial measuring systems, including x-ray fluorescence analyzers.

1,200

D. All other special nuclear material licenses, except licenses authorizing special nuclear material in unsealed form in combination that would constitute a critical quantity, as defined in § 150.11 of this chapter,

for which the licensee shall pay the same fees as those for Category 1.A.(2).

2,800

E. Licenses for the operation of a uranium enrichment facility ......................................................................... 11 N/A

2. Source material:

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

hexafluoride.

598,100

(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 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).

41,800

(4) Licenses that authorize the receipt of byproduct material, as defined in Section 11e(2) of the Atomic

Energy Act, from other persons for possession and disposal incidental to the disposal of the uranium

waste tailings generated by the licensee’s milling operations, except those licenses subject to the fees in

Category 2.A.(2).

7,400

B. Licenses which authorize only the possession, use and/or installation of source material for shielding .... 450

C. All other source material licenses ................................................................................................................. 8,100

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.

15,400

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

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

5,200

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

manufacturing and distribution or redistribution of radiopharmaceuticals, generators, reagent kits and/or

sources and devices containing byproduct material. This category also includes the possession and use

of source material for shielding authorized pursuant to part 40 of this chapter when included on the

same license.

10,400

D. Licenses and approvals issued pursuant to §§ 32.72, 32.73, and/or 32.74 of this chapter authorizing distribution or redistribution of radiopharmaceuticals, generators, reagent kits and/or sources or devices not

involving processing of byproduct material. This category also includes the possession and use of

source material for shielding authorized pursuant to part 40 of this chapter when included on the same license..

4,100

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).

2,900

F. Licenses for possession and use of less than 10,000 curies of byproduct material in sealed sources for

irradiation of materials in which the source is exposed for irradiation purposes. This category also includes underwater irradiators for irradiation of materials in which the source is not exposed for irradiation

purposes.

3,500

G. Licenses for possession and use of 10,000 curies or more of byproduct material in sealed sources for

irradiation of materials in which the source is exposed for irradiation purposes. This category also includes underwater irradiators for irradiation of materials in which the source is not exposed for irradiation

purposes.

18,200

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.

4,600
2964 Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules

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

[See footnotes at end of table]

Category of materials licenses Annual

fees 1 2 3

I. Licenses issued pursuant to subpart A of part 32 of this chapter to distribute items containing byproduct

material or quantities of byproduct material that do not require device evaluation to persons exempt from

the licensing requirements of part 30 of this chapter, except for specific licenses authorizing redistribution

of items that have been authorized for distribution to persons exempt from the licensing requirements of

part 30 of this chapter.

8,200

J. Licenses issued pursuant to subpart B of part 32 of this chapter to distribute items containing byproduct

material that require sealed source and/or device review to persons generally licensed under part 31 of

this chapter, except specific licenses authorizing redistribution of items that have been authorized for distribution to persons generally licensed under part 31 of this chapter.

3,500

K. Licenses issued pursuant to subpart B of part 31 of this chapter to distribute items containing byproduct

material or quantities of byproduct material that do not require sealed source and/or device review to

persons generally licensed under part 31 of this chapter, except specific licenses authorizing redistribution of items that have been authorized for distribution to persons generally licensed under part 31 of this

chapter.

3,000

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.

11,400

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

for research and development that do not authorize commercial distribution.

5,100

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

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

(2) Licenses that authorize waste disposal services are subject to the fees specified in fee Categories

4A, 4B, and 4C.

5,600

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

for shielding authorized pursuant to part 40 of this chapter when authorized on the same license.

13,000

P. All other specific byproduct material licenses, except those in Categories 4A through 9D ......................... 1,600

4. Waste disposal and processing:

A. Licenses specifically authorizing the receipt of waste byproduct material, source material, or special nuclear material from other persons for the purpose of contingency storage or commercial land disposal by

the licensee; or licenses authorizing contingency storage of low-level radioactive waste at the site of nuclear power reactors; or licenses for receipt of waste from other persons for incineration or other treatment, packaging of resulting waste and residues, and transfer of packages to another person authorized

to receive or dispose of waste material.

94,400

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.

13,300

C. Licenses specifically authorizing the receipt of prepackaged waste byproduct material, source material,

or special nuclear material from other persons. The licensee will dispose of the material by transfer to

another person authorized to receive or dispose of the material.

7,100

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.

7,500

B. Licenses for possession and use of byproduct material for field flooding tracer studies ............................. 12,200

6. Nuclear laundries:

A. Licenses for commercial collection and laundry of items contaminated with byproduct material, source

material, or special nuclear material.

13,600

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. This

category also includes the possession and use of source material for shielding when authorized on the

same license.

9,500

B. Licenses of broad scope issued to medical institutions or two or more physicians pursuant to parts 30,

33, 35, 40, and 70 of this chapter authorizing research and development, including human use of byproduct material except licenses for byproduct material, source material, or special nuclear material in

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

source material for shielding when authorized on the same license 9.

21,700

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

material, source material, and/or special nuclear material except licenses for byproduct material, source

material, or special nuclear material in sealed sources contained in teletherapy devices. This category

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

4,300

8. Civil defense:

A. Licenses for possession and use of byproduct material, source material, or special nuclear material for

civil defense activities.

1,600

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

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

source material, or special nuclear material, except reactor fuel devices, for commercial distribution.

6,700
Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules 2965

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

[See footnotes at end of table]

Category of materials licenses Annual

fees 1 2 3

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

source material, or special nuclear material manufactured in accordance with the unique specifications

of, and for use by, a single applicant, except reactor fuel devices.

3,400

C. Registrations issued for the safety evaluation of sealed sources containing byproduct material, source

material, or special nuclear material, except reactor fuel, for commercial distribution.

1,400

D. Registrations issued for the safety evaluation of sealed sources containing byproduct material, source

material, or special nuclear material, manufactured in accordance with the unique specifications of, and

for use by, a single applicant, except reactor fuel.

720

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

Other Casks ................................................................................................................................................ 6 N/A

B. Approvals issued of 10 CFR part 71 quality assurance programs.

Users and Fabricators ................................................................................................................................ 72,800

Users ........................................................................................................................................................... 950

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

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

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

B. General licenses for storage of spent fuel under 10 CFR 72.210 ................................................................ 261,100

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

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

7 N/A

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

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

17. Master materials licenses of broad scope issued to Government agencies ...................................................... 388,600

18. Department of Energy:

A. Certificates of Compliance ............................................................................................................................ 10 1,078,000 ........................

B. Uranium Mill Tailing Radiation Control Act (UMTRCA) activities ................................................................. 1,813,000

1Annual fees will be assessed based on whether a licensee held a valid license with the NRC authorizing possession and use of radioactive

material during the fiscal year. However, the annual fee is waived for those materials licenses and holders of certificates, registrations, and approvals who either filed for termination of their licenses or approvals or filed for possession only/storage licenses prior to October 1, 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 § 171.17. If a person holds more than one license, certificate, registration, or approval, the annual fee(s) will be assessed for each

license, certificate, registration, or approval held by that person. For licenses that authorize more than one activity on a single license (e.g.,

human use and irradiator activities), annual fees will be assessed for each category applicable to the license. Licensees paying annual fees

under Category 1.A. (1). are not subject to the annual fees of Category 1.C and 1.D for sealed sources authorized in the license. 2Payment of the prescribed annual fee does not automatically renew the license, certificate, registration, or approval for which the fee is paid.

Renewal applications must be filed in accordance with the requirements of parts 30, 40, 70, 71, or 72 of this chapter. 3For FYs 1997 and 1998, fees for these materials licenses will be calculated and assessed in accordance with § 171.13 and will be published

in the FEDERAL REGISTER for notice and comments. 4A Class I license includes mill licenses issued for the extraction of uranium from uranium ore. A Class II license includes solution mining licenses (in-situ and heap leach) issued for the extraction of uranium from uranium ores including research and development licenses. An ‘‘other’’

license includes licenses for extraction of metals, heavy metals, and rare earths. 5Two licenses have been issued by NRC for land disposal of special nuclear material. Once NRC issues a LLW disposal license for byproduct

and source material, the Commission will consider establishing an annual fee for this type of license. 6Standardized spent fuel facilities, parts 71 and 72 Certificates of Compliance, and special reviews, such as topical reports, are not assessed

an annual fee because the generic costs of regulating these activities are primarily attributable to the users of the designs, certificates, and topical reports. 7 Licensees in this category are not assessed an annual fee because they are charged an annual fee in other categories while they are licensed to operate. 8 No annual fee is charged because it is not practical to administer due to the relatively short life or temporary nature of the license.

9Separate annual fees will not be assessed for pacemaker licenses issued to medical institutions who also hold nuclear medicine licenses

under Categories 7B or 7C. 10This includes Certificates of Compliance issued to DOE that are not under the Nuclear Waste Fund. 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 § 171.19, paragraphs (b) and (c)

are revised and a new paragraph (d) is

added to read as follows:

§ 171.19 Payment.

* * * * *

(b) For FY 1996 through FY 1998, the

Commission will adjust the fourth

quarterly bill for operating power
2966 Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules

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 § 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

§ 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
Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules 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 § 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 welllogging company (a ‘‘Mom and Pop’’ type

of operation) would find it difficult to

absorb the annual fee, while a large

corporation would find it easier. Another

commenter noted that the fee increase

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

licensee noted that, in the very competitive

soils testing market, the annual fees would

put it at an extreme disadvantage with its

much larger competitors because the

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

thousands of employees.

—Some firms would be forced to cancel their

licenses. One commenter, with receipts of

less than $500,000 per year, stated that the

proposed rule would, in effect, force it to

relinquish its soil density gauge and

license, thereby reducing its ability to do

its work effectively. Another commenter

noted that the rule would force the

company and many other small businesses

to get rid of the materials license

altogether. Commenters stated that the

proposed rule would result in about 10

percent of the well-logging licensees

terminating their licenses immediately and

approximately 25 percent terminating their

licenses before the next annual assessment.

—Some companies would go out of business.

One commenter noted that the proposal

would put it, and several other small

companies, out of business or, at the very

least, make it hard to survive.

—Some companies would have budget

problems. Many medical licensees

commented that, in these times of slashed

reimbursements, the proposed increase of

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.
2968 Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules

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

FEDERAL RESERVE SYSTEM

12 CFR Part 226

[Regulation Z; Docket No. R-0913]

Truth in Lending

AGENCY: Board of Governors of the

Federal Reserve System.

ACTION: Request for comments.

SUMMARY: The Board is soliciting

comment on whether the Truth in

Lending Act cost disclosure and other

rules for open-end home-secured lines

of credit provide adequate consumer

protections. The Riegle Community

Development and Regulatory

Improvement Act of 1994 directs the

Board to submit a report to the Congress

regarding this matter. Under present

law, creditors offering open-end homeequity lending programs have to provide

detailed disclosures at the time a

consumer applies for a line of credit.

The law also imposes specific

substantive limitations on how these

programs may be structured; however

they are not subject to the type of

disclosure and restrictions imposed by

the Home Ownership and Equity Act of

1994 for closed-end credit.

DATES: Comments must be received on

or before April 1, 1996.

ADDRESSES: Comments should refer to

Docket No. R–0913, and may be mailed

to William W. Wiles, Secretary, Board of

Governors of the Federal Reserve

System, 20th Street and Constitution

Avenue NW., Washington, DC 20551.

Comments also may be delivered to

Room B–2222 of the Eccles Building

between 8:45 a.m. and 5:15 p.m.

weekdays, or to the guard station in the

Eccles Building courtyard on 20th Street

NW. (between Constitution Avenue and

C Street) at any time. Comments may be

inspected in Room MP–500 of the

Martin Building between 9:00 a.m. and

5:00 p.m. weekdays, except as provided

in 12 CFR 261.8 of the Board’s rules

regarding the availability of information.

FOR FURTHER INFORMATION CONTACT:

Obrea Poindexter, Staff Attorney,

Division of Consumer and Community

Affairs, Board of Governors of the

Federal Reserve System, at (202) 452–

3667 or 452–2412. For users of

Telecommunications Device for the Deaf

(TDD), please contact Dorothea

Thompson at (202) 452–3544.

SUPPLEMENTARY INFORMATION:

I. Background

The Home Ownership and Equity

Protection Act (HOEPA) amendments to

the Truth in Lending Act, contained in

the Riegle Community Development and

Regulatory Improvement Act of 1994

(RCDRIA) require special disclosures

and impose substantive limitations on

certain closed-end home-equity loans

with rates or fees above a certain

percentage or amount. The requirements

and prohibitions contained in the

HOEPA, which became effective in

October 1995, do not apply to open-end

home-secured lines of credit. The

legislative history notes that

congressional hearings on home-equity

lending practices revealed little

evidence of abusive practices in the

open-end home-equity credit market.

The legislative history also states that, if

the market changes or if the Board finds

that open-end credit plans are being

used to circumvent the HOEPA, the

Board has the authority to address

abuses under section 152(d) of the

HOEPA.

In addition, the RCDRIA directs the

Board to conduct a study and submit a

report to the Congress, including

recommendations for legislation, on

whether existing rules for open-end

home-equity lending programs provide

consumers obtaining home-equity lines

of credit with adequate protections.

II. Current Rules for Home-Equity Lines

of Credit

The Home Equity Loan Consumer

Protection Act amendments to the Truth

in Lending Act, enacted in November

1988, require creditors to give

consumers extensive disclosures and an

educational brochure for home-equity

plans at the time an application is

provided. For example, creditors must

provide information about payment

terms, fees imposed under the plans,

and, for variable-rate plans, information

about the index used to determine the

rate and a fifteen-year history of changes

in the index values. In addition, the law

imposes certain substantive limitations

on home-equity plans, such as limiting

the right of creditors to terminate a plan

and accelerate an outstanding balance or

to change the terms of a plan after it has

been opened.

The Board’s Regulation Z (12 CFR

part 226) implements the Truth in

Lending Act. Regulation Z requirements

for home-equity lines of credit closely

mirror the statutory requirements. As

the statute sets forth specific

requirements that are restrictive in

many cases, the rules implementing the

statute are similarly restrictive.

Specific rules on home-equity lines of

credit are contained in Regulation Z,

§§ 226.5b, 226.6(e), 226.9(c)(3), and

226.16(d) and its accompanying

commentary. Requirements for homeequity lines of credit apply to all openend credit plans secured by a

consumer’s dwelling. The rules require

creditors offering home-equity plans

(and third-parties in some instances) to

give specific disclosures about costs and

terms and limits how creditors may

structure programs.

Format and Timing of Disclosures

In most cases, at the time a consumer

is provided with an application for a

home-secured line of credit, disclosures

must be given. These disclosures must

be in writing, grouped together, and

segregated from all unrelated

information. Each consumer must also

be given an educational pamphlet

prepared by the Board entitled ‘‘When

Your Home is On the Line: What You

Should Know About Home Equity Lines

of Credit,’’ or a similar substitute.

Program-specific initial disclosures

must be given in writing before the first

transaction is made under the plan.

Content of Disclosures

Creditors offering home-equity plans

must provide information to consumers

that is required under section 226.5b of

the regulation. This includes, but is not

limited to, the following:

(1) The payment terms, including the

length of the draw and any repayment

period, an explanation of how the

minimum periodic payment will be

determined and the timing of payments,

and an example based on a $10,000