Revision of Fee Schedules; 100% Fee Recovery, FY 1994

NUCLEAR REGULATORY COMMISSION

10 CFR Parts 170 and 171

RIN 3150-AF03

Revision of Fee Schedules; 100% Fee Recovery, FY 1994

AGENCY: Nuclear Regulatory Commission.

ACTION: Proposed rule.

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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

Public Law 101-508, enacted November 5, 1990, which mandates that the

NRC recover approximately 100 percent of its budget authority in Fiscal

Year (FY) 1994 less amounts appropriated from the Nuclear Waste Fund

(NWF). The amount to be recovered for FY 1994 is approximately $513

million.

DATES: The comment period expires June 9, 1994. 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 Public Law 101-508 requires that NRC

collect the FY 1994 fees by September 30, 1994, requests for extensions

of the comment period will not be granted.

ADDRESSES: Submit written comments to: Secretary, U.S. Nuclear

Regulatory Commission, Washington, DC 20555, 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-

504-1678).

Copies of comments received and 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.

FOR FURTHER INFORMATION CONTACT: C. James Holloway, Jr., Office of the

Controller, U.S. Nuclear Regulatory Commission, Washington, DC 20555,

Telephone 301-492-4301.

SUPPLEMENTARY INFORMATION:

I. Background.

II. Proposed Action.

III. Section-by-Section Analysis.

IV. Environmental Impact: Categorical Exclusion.

V. Paperwork Reduction Act Statement.

VI. Regulatory Analysis.

VII. Regulatory Flexibility Analysis.

VIII. Backfit Analysis.

I. Background

Public Law 101-508, the Omnibus Budget Reconciliation Act of 1990

(OBRA-90), enacted November 5, 1990, requires that the NRC recover

approximately 100 percent of its budget authority less the amount

appropriated from the Department of Energy (DOE) administered NWF for

FYs 1991 through 1995 by assessing fees. OBRA-90 was amended in 1993 to

extend the NRC's 100 percent fee recovery requirement through 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. The services provided by the NRC for which these fees are

assessed include the review of applications for the issuance of new

licenses or approvals, amendments to or renewal of licenses or

approvals, and inspections of licensed activities. 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.

Subsequent to enactment of OBRA-90, the NRC published five final

fee rules after evaluation of public comments. On July 10, 1991 (56 FR

31472), the NRC published a final rule in the Federal Register that

established the Part 170 professional hourly rate and the materials

licensing and inspection fees, as well as the Part 171 annual fees, to

be assessed to recover approximately 100 percent of the FY 1991 budget.

In addition to establishing the FY 1991 fees, the final rule

established the underlying basis and methodology for determining both

the 10 CFR part 170 hourly rate and fees and the 10 CFR part 171 annual

fees. The FY 1991 rule was challenged in Federal court by several

parties; the U.S. Court of Appeals for the District of Columbia Circuit

rendered its decision on March 16, 1993, remanding two issues to the

NRC for further consideration (988 F.2d 146 (D.C. Cir. 1993)). The

court decision was also extended to cover the FY 1992 fee rule by court

order dated April 30, 1993.

On April 17, 1992 (57 FR 13625), the NRC published in the Federal

Register two limited changes to 10 CFR parts 170 and 171. The limited

changes became effective May 18, 1992. The limited change to 10 CFR

part 170 allowed the NRC to bill quarterly for those license fees that

were previously billed every six months. The limited change to 10 CFR

part 171 lowered in some cases the maximum annual fee of $1,800

assessed a materials licensee who qualifies as a small entity under the

NRC's size standards. A lower tier small entity fee of $400 per

licensed category was established for small business and non-profit

organizations with gross annual receipts of less than $250,000 and

small governmental jurisdictions with a population of less than 20,000.

On July 23, 1992 (57 FR 32691), and July 20, 1993 (58 FR 38666),

the NRC published final rules in the Federal Register that established

the licensing, inspection, and annual fees necessary for the NRC to

recover approximately 100 percent of its budget authority for FY 1992

and FY 1993 respectively. The basic methodology used in the FY 1992 and

FY 1993 final rules was unchanged from that used to calculate the 10

CFR part 170 professional hourly rate, the specific materials licensing

and inspection fees in 10 CFR part 170, and the 10 CFR part 171 annual

fees in the final rule published July 10, 1991 (56 FR 31472). The

methodology for assessing low-level waste (LLW) costs was changed in FY

1993 in response to the judicial decision mentioned earlier. This

change was explained in detail in the FY 1993 final rule published July

20, 1993 (58 FR 38669-72). The NRC created two groups--large waste

generators and small waste generators. Licensees within each group are

charged a uniform flat fee.

On March 17, 1994 (59 FR 12539), the NRC reinstated the annual fee

exemption for nonprofit educational institutions after notice and

comment. In response to the March 16, 1993 judicial decision, the

exemption had been eliminated in the final rule published by NRC on

July 20, 1993 (58 FR 38666).

The American College of Nuclear Physicians and the Society of

Nuclear Medicine filed a Petition for Rulemaking which included a

request that the Commission exempt medical licensees from fees for

services provided in nonprofit institutions. The Commission denied that

request on March 17, 1994, (59 FR 12555).

Section 2903(c) of the Energy Policy Act of 1992 required the NRC

to undertake a broad review of its annual fee policies under section

6101(c) of OBRA-90, solicit public comment on the need for policy

changes, and recommend changes in existing law to the Congress that the

NRC found were needed to prevent the placement of an unfair burden on

certain NRC licensees. To comply with the Energy Policy Act

requirements, the NRC reviewed more than 500 public comments submitted

in response to the request for comment published in the Federal

Register on April 19, 1993 (58 FR 21116), and sent its report to

Congress on February 23, 1994. A copy of this report has been placed in

the Public Document Room.

II. Proposed Action

The NRC is proposing to amend its licensing, inspection, and annual

fees for FY 1994. OBRA-90 requires that the NRC recover approximately

100 percent of its FY 1994 budget authority, including the budget

authority for its Office of the Inspector General, less the

appropriations received from the NWF, by assessing licensing,

inspection, and annual fees.

For FY 1994, the NRC's budget authority was originally $547.7

million. The Commission, in its effort to streamline operations,

proposed a $12.7 million rescission to the original appropriation for

FY 1994. Congress approved this NRC proposed reduction resulting in a

revised budget authority of $535.0 million. Approximately $22.0 million

of the revised budget was appropriated from the NWF. Therefore, OBRA-90

requires that the NRC collect approximately $513.0 million in FY 1994

through 10 CFR part 170 licensing and inspection fees and 10 CFR part

171 annual fees. This amount for FY 1994 is about $6 million less than

the total amount for FY 1993. The NRC estimates that approximately

$116.2 million will be recovered in FY 1994 from the fees assessed

under 10 CFR part 170. The remaining $396.8 million will be recovered

through the 10 CFR part 171 annual fees established for FY 1994.

The NRC has not changed the basic approach, policies, or

methodology for calculating the 10 CFR part 170 professional hourly

rate, the specific materials licensing and inspection fees in 10 CFR

part 170, and the 10 CFR part 171 annual fees set forth in the final

rules published July 10, 1991 (56 FR 31472), July 23, 1992 (57 FR

32691), and July 20, 1993 (58 FR 38666) with the following exceptions.

The Commission has reinstated the annual fee exemption for nonprofit

educational institutions. In this proposed rule, the NRC has directly

assigned additional effort to the reactor and materials programs for

the Office of Investigations, the Office of Enforcement, the Advisory

Committee on Reactor Safeguards, and the Advisory Committee on Nuclear

Waste. Resources for these activities had previously been included in

overhead, but are now assigned directly to the class of licenses that

they support. As a result of this direct assignment, the cost per

direct FTE is about 3% less than it would have been without the

additional direct assignment.

The NRC contemplates that any fees to be collected as a result of

this proposed rule will be assessed on an expedited basis to ensure

collection of the required fees by September 30, 1994, as stipulated in

the Public Law. Therefore, as in FY 1991, FY 1992, and FY 1993, the

fees, if adopted, will become effective 30 days after publication of

the final rule in the Federal Register. The NRC will send a bill for

the amount of the annual fee to the licensee or certificate,

registration, or approval holder upon publication of the final rule.

Payment is due on the effective date of the FY 1994 rule, which is

estimated to be August 1, 1994.

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 part 170. These amendments do

not change the underlying basis for the regulation--that fees be

assessed to applicants, persons, and licensees for specific

identifiable services rendered. These revisions also comply with the

guidance in the Conference Committee Report on OBRA-90 that fees

assessed under the Independent Offices Appropriation Act (IOAA) recover

the full cost to the NRC of all identifiable regulatory services each

applicant or licensee receives.

First, the NRC proposes that the agency-wide professional hourly

rate, which is used to determine the part 170 fees, be increased from

$132 per hour to $133 per hour ($231,216 per direct FTE). The rate is

based on the FY 1994 direct FTEs and that portion of the FY 1994 budget

that is not direct program support (contractual services costs) and not

recovered through the appropriation from the NWF. As indicated earlier,

the decrease in the FY 1994 budget compared to the FY 1993 budget is

primarily for direct program support which is not included in the

hourly rate. Thus, the reduction in the budget has limited impact on

the hourly rate but will show as a direct reduction to the amount

allocated to the various classes of licensees.

Second, the NRC proposes that the current part 170 licensing and

inspection fees in Secs. 170.21 and 170.31 for all applicants and

licensees be adjusted to reflect the very small increase in the hourly

rate.

Third, the NRC is also proposing to revise the definition of

special projects as provided in Sec. 170.3 of the regulations. This

change is proposed because of (1) our experience in implementing the

100 percent fee recovery program during the past three years and (2)

the NRC's most recent fee policy review that was required by the Energy

Policy Act of 1992. The NRC believes that the costs for some requests

or reports being filed with NRC are more appropriately captured in the

10 CFR part 171 annual fees rather than assessing specific fees under

10 CFR part 170. These reports, although submitted by a specific

organization, support NRC's development of generic guidance and

regulations (e.g., rules, regulatory guides and policy statements), and

resolution of safety issues applicable to a class of licensees such as

those addressed in generic letters. Therefore, the NRC proposes that

the definition in Sec. 170.3 as well as the footnotes in Secs. 170.21

and 170.31 be revised to indicate that 10 CFR part 170 fees will not be

assessed for requests/reports which have been submitted to the NRC:

(1) 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;

(2) 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

(3) As a means of exchanging information between industry

organizations and the NRC for the purpose of supporting generic

regulatory improvements or efforts.

Fourth, the NRC is proposing to amend Category 16 of Sec. 170.31,

reciprocity, to include a fee to recover the costs expended by the NRC

for the review of revisions to the information submitted on the NRC

Form 241 filed by 10 CFR 150.20 general licensees during the remainder

of the calendar year. Persons engaging in activities in a non-Agreement

State under the reciprocity provisions of Sec. 150.20 are required to

file an NRC Form 241 for the initial application in a calendar year.

Revisions to the initial NRC Form 241 are filed for review and

authorization in lieu of filing additional Forms 241 when persons using

the 10 CFR 150.20 general license either add locations of work, use

different radioactive material or perform additional work activities in

a non-Agreement State.

B. Amendments to 10 CFR part 171: Annual Fees for Reactor Operating

Licenses, and Fuel Cycle Licenses and Materials Licenses, Including

Holders of Certificates of Compliance, Registrations, and Quality

Assurance Program Approvals and Government Agencies Licensed by NRC

The NRC proposes six amendments to 10 CFR Part 171. First, the NRC

is proposing to amend Sec. 171.11(a)(2) to provide that State-owned

research reactors used primarily for education and training and

academic research purposes will be exempt from the annual fee. The NRC

believes that this proposed change is consistent with the legislative

intent of the Energy Policy Act of 1992 that government-owned research

reactors be exempt from annual fees if they meet the technical design

criteria of the exemption and are used primarily for educational

training and research purposes.

Second, NRC proposes to amend Secs. 171.15 and 171.16 to revise the

annual fees for FY 1994 to recover approximately 100 percent of the FY

1994 budget authority less fees collected under 10 CFR Part 170 and

funds appropriated from the NWF.

Third, NRC proposes to amend fee Category 18 of Sec. 171.16(d) to

assess fees to the Department of Energy (DOE) for the general license

in 10 CFR 40.27. The general license fulfills a requirement of the

Uranium Mill Tailings Radiation Control Act of 1978 (UMTRCA) (Pub. L.

95-604) that the perpetual custodian of reclaimed uranium mill tailings

piles be licensed by the NRC. The general license provided for in the

regulation covers only post-reclamation closure custody and site

surveillance. Based on NRC's acceptance of DOE's Long Term Surveillance

Plan for the Spook, Wyoming site on September 21, 1993, the site is now

subject to the general license in 10 CFR 40.27. Because DOE now holds

an NRC license, it is subject to annual fees. The NRC had previously

indicated its intent to bill DOE for UMTRCA costs once post-closure was

achieved and the sites were licensed by the Government (56 FR 31481,

July 10, 1991). As a result, DOE would be billed for the costs

associated with NRC's UMTRCA review of all activities associated with

the facilities assigned to DOE under UMTRCA. As with other licensees,

the annual fee for this class of licensees (DOE UMTRCA facilities) will

recover the generic and other regulatory costs not recovered through 10

CFR Part 170 fees. Since DOE, as a Federal agency, cannot be assessed

Part 170 fees under the Independent Offices Appropriation Act of 1952

(IOAA), the result is that NRC proposes to assess annual fees for the

total costs of DOE UMTRCA activities to DOE.

Fourth, the NRC is proposing to amend 10 CFR 171.17 to add a

proration provision for materials licenses and to revise the proration

provision for reactors. The annual fee for materials licensees would be

prorated based on applications filed after October 1 of the fiscal year

either to reduce the scope of a license or to terminate a license.

Those materials licensees who file applications between October 1 and

March 31 of the fiscal year to downgrade the license or terminate the

license would pay one-half the annual fee stated in Sec. 171.16(d) for

the affected fee category(ies). Those materials licensees filing

applications on or after April 1 of the fiscal year to downgrade or

terminate a license would pay the full annual fee. Those licensees who

file for termination or downgrade must also permanently cease

operations of those licensed activities during the periods mentioned

for the fees to be reduced. Similarly, materials licensees who were

issued new licenses or licenses of increased scope during the fiscal

year would also be charged a prorated annual fee based on the date of

issuance of the new license or license amendment increasing its scope.

New materials licenses issued during the period October 1 through March

31 would be assessed one-half of the annual fee stated in

Sec. 171.16(d) for the applicable fee category(ies). New licenses

issued on or after April 1 would not be assessed an annual fee.

In addition, materials licenses amended during the period from

October 1 through March 31 to increase the scope would be assessed one-

half the annual fee for the new fee category(ies). Materials licenses

amended on or after April 1 to increase the scope of the license would

not be assessed the annual fee for the new fee category(ies).

The NRC proposes to amend the proration provision in Sec. 171.17

applicable to reactors to provide that for licensees who have requested

amendment to withdraw operating authority permanently during the FY the

annual fee will be prorated based on the number of days during the FY

the operating license was in effect before the possession only license

was issued or the license was terminated.

Fifth, the NRC is proposing to modify Footnote 1 of 10 CFR

171.16(d) to provide for a waiver of the annual fees for those

materials licensees, and holders of certificates, registrations, and

approvals who either filed for termination of their license or approval

or filed for a possession only/storage license prior to October 1,

1993, and permanently ceased licensed activities entirely by September

30, 1993. All other licensees and approval holders who held a license

or approval on October 1, 1993, would be subject to FY 1994 annual

fees. This change is in recognition of the fact that since the final FY

1993 rule was published in July 1993, licensees have continued to file

requests for termination of their licenses or certificates with the

NRC. Other licensees have either called or written to the NRC since the

FY 1993 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 of the requests before the

end of the fiscal year on September 30, 1993. Similar situations

existed after the FY 1991 and FY 1992 rules were published, and in

those cases NRC provided an exemption from the requirement that the

annual fee is waived only where a license is terminated before October

1 of each fiscal year.

Sixth, the NRC is proposing to amend Sec. 171.19 to credit the

quarterly partial payments already made by certain licensees in FY 1994

either toward their total annual fee to be assessed or to make refunds,

if necessary.

The proposed 10 CFR part 171 annual fees have been determined using

the same method used to determine the FY 1991, FY 1992, and FY 1993

annual fees. The amounts to be collected through annual fees in the

amendments to 10 CFR part 171 are based on the increased professional

hourly rate. 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

changes are consistent with the Congressional guidance in the

Conference Committee Report on OBRA-90, which states that the

``conferees contemplate that the NRC will continue to allocate generic

costs that are attributable to a given class of licensee to such

class'' and the ``conferees intend that the NRC assess the annual

charge under the principle that licensees who require the greatest

expenditures of the agency's resources should pay the greatest annual

fee'' (136 Cong. Rec., at H12692-93).

During the past three 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 in

fact either not using the material to conduct operations or had

disposed of the material and no longer needed the license. In

responding to licensees about this matter, the NRC has 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

once again that annual fees will be assessed based on whether a

licensee holds a valid license with the NRC that authorizes possession

and use of radioactive material. To remove any uncertainties regarding

agency policy on this issue, the NRC amended 10 CFR 171.16, footnotes 1

and 7 on July 20, 1993.

C. FY 1994 Budgeted Costs

The FY 1994 budgeted costs, by major activity, to be recovered

through 10 CFR parts 170 and 171 fees, are shown in Table I.

Table I.--Recovery of NRC's FY 1994 Budget Authority

(Dollars in-millions)

------------------------------------------------------------------------

Estimated

Recovery method amount

------------------------------------------------------------------------

Nuclear waste fund........................................... $22.0

Part 170 (license and inspection fees)....................... 116.2

Other receipts............................................... .1

Part 171 (annual fees):

Power reactors............................................. 306.0

Nonpower reactors.......................................... .4

Fuel facilities............................................ 16.8

Spent fuel storage......................................... 2.2

Uranium recovery........................................... 2.1

Transportation............................................. 4.0

Material users............................................. \1\38.6

----------

Subtotal part 171...................................... 370.1

==========

Costs remaining to be recovered not identified above......... $26.6

----------

Total.................................................. 535.0

------------------------------------------------------------------------

\1\Includes $6.3 million that will not be recovered from small materials

licensees because of the reduced small entity fees.

The NRC is proposing that the $26.6 million identified for those

activities which are not identified as either 10 CFR Parts 170 or 171

or the NWF in Table I be distributed among the classes of licensees as

follows:

$24.4 million to operating power reactors;

$.7 million to fuel facilities; and

$1.5 million to other materials licensees.

In addition, approximately $6.3 million must be collected as a

result of continuing the $1,800 maximum fee for small entities and the

lower tier small entity fee of $400 for certain licensees. In order for

the NRC to recover 100 percent of its FY 1994 budget authority in

accordance with OBRA-90, the NRC is proposing to recover $5.3 million

of the $6.3 million from operating power reactors and the remaining

$1.0 million from other nonreactor entities that do not meet NRC small

entity size standards.

This distribution results in an additional charge (surcharge) of

approximately $275,000 per operating power reactor; $55,600 for each

HEU, LEU, UF6 and each other fuel facility license; $1,500 for

each materials license in a category that generates a significant

amount of low level waste; and $170 for other materials licenses. When

added to the base annual fee of approximately $2.8 million per reactor,

this will result in an annual fee of approximately $3.1 million per

operating power reactor. The total fuel facility annual fee would be

between approximately $1.2 million and $3.2 million. The total annual

fee for materials licenses would vary depending on the fee

category(ies) assigned to the license.

The proposed additional charges not directly or solely attributable

to a specific class of NRC licensees and costs not recovered from all

NRC licensees on the basis of previous Commission policy decisions

would be recovered from the designated classes of licensees previously

identified. A further discussion and breakdown of the specific costs by

major classes of licensees are shown in Section III of this proposed

rule.

III. Section-by-Section Analysis

The following analysis of those sections that are affected under

this proposed rule provides additional explanatory information. All

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

Regulations.

Part 170

Section 170.3 Definitions

This section would be amended to revise the definition of special

projects. This proposed change is based on our experience during the

past three years in implementing the 100 percent fee recovery program

and the fee policy review required by the Energy Policy Act of 1992.

The NRC believes that the costs for some requests or reports being

filed with NRC are more appropriately captured in the 10 CFR Part 171

annual fees instead of assessing specific fees under 10 CFR Part 170.

Therefore, it is proposed that the definition in Sec. 170.3, as well as

the footnotes in Secs. 170.21 and 170.31, be revised to indicate that

10 CFR Part 170 fees will not be assessed for requests/reports which

have been submitted to the NRC:

1. 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;

2. 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

3. As a means of exchanging information between industry

organizations and the NRC for the purpose of supporting generic

regulatory improvements or efforts.

Section 170.20 Average Cost per Professional Staff Hour

This section would be amended to reflect an agency-wide,

professional staff-hour rate based on FY 1994 budgeted costs.

Accordingly, the NRC professional staff-hour rate for FY 1994 for all

fee categories that are based on full cost is $133 per hour, or

$231,216 per direct FTE. The rate is based on the FY 1994 direct FTEs

and NRC budgeted costs that are not recovered through the appropriation

from the NWF. The rate is calculated using the identical method

established for FY 1991, FY 1992, and FY 1993. The method is as

follows:

1. All direct FTEs are identified in Table II by major program. It

is noted that for FY 1994 the NRC has traced additional direct effort

to the reactor and materials programs for the Office of Investigations,

the Office of Enforcement, the Advisory Committee on Reactor

Safeguards, and the Advisory Committee on Nuclear Waste. The cost for

these activities had previously been included in overhead, but are now

being directly assigned to the class of licensees that they support.

Table II.--Allocation of Direct FTEs by Major Program

------------------------------------------------------------------------

Number

of

Major program direct

FTEs\1\

------------------------------------------------------------------------

Reactor Safety & Safeguards Regulation........................ 1,034.4

Reactor Safety Research....................................... 111.3

Nuclear Material & Low-Level Waste Safety & Safeguards

Regulation................................................... 352.5

Reactor Special and Independent Reviews, Investigations, and

Enforcement.................................................. 111.7

Nuclear Material Management and Support....................... 19.0

---------

Total direct FTE........................................ \2\1,628

.9

------------------------------------------------------------------------

\1\FTE (full time equivalent) is one person working for a full year.

Regional employees are counted in the office of the program each

supports.

\2\In FY 1994, 1,628.9 FTEs of the total 3,223 FTEs are considered to be

in direct support of NRC non-NWF programs. The remaining 1,594.1 FTEs

are considered overhead and general and administrative.

2. NRC FY 1994 budgeted costs are allocated, in Table III, to the

following four major categories:

(a) Salaries and benefits.

(b) Administrative support.

(c) Travel.

(d) Program support.

3. Direct program support, which is the use of contract or other

services in support of the line organization's direct program, is

excluded because these costs are charged directly through the various

categories of fees.

4. All other costs (i.e., Salaries and Benefits, Travel,

Administrative Support, and Program Support contracts/services for G&A

activities) represent ``in-house'' costs and are to be collected by

allocating them uniformly over the total number of direct FTEs.

Using this method, which was described in the final rules published

July 10, 1991 (56 FR 31472), July 23, 1992 (57 FR 32691), and July 20,

1993 (58 FR 38666), and excluding direct Program Support funds,

allocating the remaining $376.6 million uniformly to the direct FTEs

(1,628.9) results in a rate of $231,216 per FTE for FY 1994. The Direct

FTE Hourly Rate is $133 per hour (rounded to the nearest whole dollar).

This rate is calculated by dividing $376.6 million by the number of

direct FTEs (1,628.9 FTE) and the number of productive hours in one

year (1744 hours) as indicated in OMB Circular A-76, ``Performance of

Commercial Activities.''

Table III.--FY 1994 Budget Authority by Major Category

[Dollars in millions]

Salaries and benefits......................................... $259.5

Administrative support........................................ 86.7

Travel........................................................ 15.9

---------

Total nonprogram support obligations.......................... 362.1

=========

Program support............................................... 150.9

---------

Total Budget Authority...................................... 513.0

=========

Less direct program support and offsetting receipts........... 136.4

---------

Budget Allocated to Direct FTE................................ 376.6

=========

Professional Hourly Rate...................................... 133

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 the FY

1994 budgeted costs and to recover costs incurred by the NRC in

providing licensing and inspection services to identifiable recipients.

The fees assessed for services provided under the schedule are based on

the professional hourly rate as shown in Sec. 170.20 and any direct

program support (contractual services) costs expended by the NRC. Any

professional hours expended on or after the effective date of this rule

would be assessed at the FY 1994 rate shown in Sec. 170.20. The amount

of the import and export licensing fees in Sec. 170.21, facility

Category K, has not changed from FY 1993 as a result of the very small

increase in the hourly rate from $132 per hour to $133 per hour.

Although the amount of the fees did not change, they are being

published for purposes of convenience.

For those applications currently on file and pending completion,

the NRC is proposing to revise footnote 2 of Sec. 170.21 to provide

that the professional hours expended up to the effective date of this

rule will be assessed at the professional rates established for the

rules that became effective on June 20, 1984, January 30, 1989, July 2,

1990, August 9, 1991, August 24, 1992, and August 19, 1993, as

appropriate. For topical report applications currently on file which

are still pending completion of the review and for which review costs

have reached the applicable fee ceiling established by the July 2,

1990, rule, the costs incurred after any applicable ceiling was reached

through August 8, 1991, will not be billed to the applicant. Any

professional hours expended for the review of topical report

applications, amendments, revisions, or supplements to a topical report

on or after August 9, 1991, are assessed at the applicable rate

established by Sec. 170.20.

Section 170.31 Schedule of Fees for Materials Licenses and Other

Regulatory Services, Including Inspections and Import and Export

Licenses.

The licensing and inspection fees in this section would be modified

to recover the FY 1994 costs incurred by the Commission in providing

licensing and inspection services to identifiable recipients. Those

flat fees, which are based on the average time to review an application

or conduct an inspection, are adjusted to reflect the very small

increase in the professional hourly rate from $132 per hour in FY 1993

to $133 per hour in FY 1994. In many cases, the fees for FY 1994 are

the same as those assessed in FY 1993.

The amounts of the licensing and inspection flat fees were rounded

by applying standard rules of arithmetic so that the amounts rounded

would be de minimus and 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.

The proposed 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, 15A through 15E and

16. The fees will be assessed for applications filed or inspections

conducted on or after the effective date of this rule.

The NRC is proposing to amend Category 16, reciprocity, to include

a fee to recover the costs incurred by the NRC for the review of

revisions to the information submitted on the NRC Form-241 filed by the

10 CFR 150.20 general licensees during the remainder of the calendar

year. Persons engaging in activities in a non-Agreement State under the

reciprocity provision of Sec. 150.20 are required to file an NRC Form

241 for the initial application in a calendar year. Revisions to the

initial NRC Form 241 are filed for review and authorization in lieu of

filing additional Forms 241 when persons using the 10 CFR 150.20

general license either add locations of work, use different radioactive

material or perform additional work activities in a non-Agreement

State.

For those licensing, inspection, and review fees assessed that are

based on full-cost recovery (cost for professional staff hours plus any

contractual services), the revised hourly rate of $133, as shown in

Sec. 170.20, applies to those professional staff hours expended on or

after the effective date of this rule.

Part 171

Section 171.11 Exemptions

Paragraph (a)(2) of this section would be amended to exempt State-

owned reactors used primarily for educational training and research

purposes from annual fees. The NRC believes that this proposed change

is consistent with the legislative intent of the Energy Policy Act of

1992 that government-owned research reactors be exempt from annual fees

if they meet the technical design criteria of the exemption and are

used primarily for educational training and research purposes. There is

one research reactor, owned by the Rhode Island Atomic Energy

Commission, that would be exempt under this proposed amendment to

Sec. 171.11.

Section 171.15 Annual Fee: Reactor Operating Licenses

The annual fees in this section would be revised to reflect FY 1994

budgeted costs. Paragraphs (a), (b)(3), (c)(2), (d), and (e) would be

revised to comply with the requirement of OBRA-90 to recover

approximately 100 percent of the NRC budget for FY 1994. Table IV shows

the budgeted costs that have been allocated to operating power

reactors. They have been expressed in terms of the NRC's FY 1994

programs and program elements. The resulting total base annual fee

amount for power reactors is also shown.

Table IV.--Allocation of NRC FY 1994 Budget to Power Reactors' Base

Fees\1\

------------------------------------------------------------------------

Program element total Allocated to power

-------------------------- reactors

-------------------------

Program Program

support Direct FTE support Direct FTE

($,K) ($,K)

------------------------------------------------------------------------

Reactor safety and

safeguards

regulation (RSSR):

Standard reactor

designs........ $9,531 96.3 $9,361 92.8

Reactor license

renewal........ 600 33.9 600 33.9

Reactor and site

licensing...... 1,810 34.7 1,810 29.8

Resident

inspections.... ........... 207.0 ........... 207.0

Region-based

inspections.... 2,780 235.0 2,780 229.8

Interns (HQ and

regions)....... ........... 23.0 ........... 23.0

Special

inspections.... 970 42.7 970 42.7

License

maintenance and

safety

evaluations.... 4,142 208.5 4,142 208.5

Plant

performance.... 927 52.1 927 52.1

Human

performance.... 4,760 54.7 4,403 51.1

Other safety

reviews and

assistance..... 3,443 46.5 3,213 38.8

---------------------------------------------------

RSSR program

total........ ........... ........... 28,206 1,009.5

Reactor safety

research (RSR):

Standard reactor

designs........ 16,676 29.3 16,676 29.3

Reactor aging

and license

renewal........ 23,273 13.7 22,573 13.6

Plant

performance.... 3,173 4.2 3,173 4.2

Human

reliability.... 4,428 7.0 4,428 7.0

Reactor accident

analysis....... 20,284 26.7 20,284 26.7

Safety issue

resolution and

regulatory

improvements... 10,240 30.4 10,240 30.4

---------------------------------------------------

RSR program

total........ ........... ........... 77,374 111.2

Nuclear material and

low level (NMLL)

NMLL (NMSS):

Fuel cycle

safety and

safeguards..... 4,783 85.8 1,494 2.8

LLW licensing

and inspection. 592 14.3 ........... 1.4

Uranium recovery

licensing and

inspection..... 265 14.4 21 0

Decommissioning. 2,215 30.8 9 6.7

NMLL (RES):

Environmental

policy and

decommissioning 2,410 9.0 964 3.6

---------------------------------------------------

NMLL program

total........ ........... ........... 2,488 14.5

Reactor special and

independent

reviews,

investigations, and

enforcement

AEOD:

Diagnostic

evaluations.... 288 5.0 288 5.0

Incident

investigations. 26 1.0 26 1.0

NRC incident

response....... 1,854 26.0 1,854 24.0

Operational

experience

evaluation..... 5,447 30.0 5,447 29.0

Committee to

review generic

requirements... ........... 2.0 ........... 2.0

---------------------------------------------------

AEOD subtotal. ........... ........... 7,615 61.0

Advisory

committee on

reactor

safeguards..... ........... ........... 181 20.5

Office of

investigations. ........... ........... ........... 17.0

Office of

enforcement.... ........... ........... 10 7.0

---------------------------------------------------

RSIRIE program

total........ ........... ........... 7,806 105.5

---------------------------------------------------

Total base fee

amount

allocated to

power

reactors..... ........... ........... 402.7 ...........

million\2\ ...........

Less estimated

part 170 power

reactor fees... ........... ........... 96.7 ...........

million ...........

---------------------------------------------------

Part 171 base

fees for

operating

power

reactors..... ........... ........... 306.0 ...........

million ...........

------------------------------------------------------------------------

\1\Base annual fees include all costs attributable to the operating

power reactor class of licensees. The base fees do not include costs

allocated to power reactors for policy reasons.

\2\Amount is obtained by multiplying the direct FTE times the rate per

FTE and adding the program support funds.

Based on the information in Table IV, the base annual fees to be

assessed for FY 1994 are the amounts shown in Table V below for each

nuclear power operating license.

Table V.--Base Annual Fees for Operating Power Reactors

----------------------------------------------------------------------------------------------------------------

Reactors Containment type Annual fee

----------------------------------------------------------------------------------------------------------------

Westinghouse:

1. Beaver Valley 1....................................... PWR large dry containment........ $2,841,000

2. Beaver Valley 2....................................... ......do......................... 2,841,000

3. Braidwood 1........................................... ......do......................... 2,841,000

4. Braidwood 2........................................... ......do......................... 2,841,000

5. Byron 1............................................... ......do......................... 2,841,000

6. Byron 2............................................... ......do......................... 2,841,000

7. Callaway 1............................................ ......do......................... 2,841,000

8. Comanche Peak 1....................................... ......do......................... 2,841,000

9. Comanche Peak 2....................................... ......do......................... 2,841,000

10. Diablo Canyon 1...................................... ......do......................... 2,839,000

11. Diablo Canyon 2...................................... ......do......................... 2,839,000

12. Farley 1............................................. ......do......................... 2,841,000

13. Farley 2............................................. ......do......................... 2,841,000

14. Ginna................................................ ......do......................... 2,841,000

15. Haddam Neck.......................................... ......do......................... 2,841,000

16. Harris 1............................................. ......do......................... 2,841,000

17. Indian Point 2....................................... ......do......................... 2,841,000

18. Indian Point 3....................................... ......do......................... 2,841,000

19. Kewaunee............................................. ......do......................... 2,841,000

20. Millstone 3.......................................... ......do......................... 2,841,000

21. North Anna 1......................................... ......do......................... 2,841,000

22. North Anna 2......................................... ......do......................... 2,841,000

23. Point Beach 1........................................ ......do......................... 2,841,000

24. Point Beach 2........................................ ......do......................... 2,841,000

25. Prairie Island 1..................................... ......do......................... 2,841,000

26. Prairie Island 2..................................... ......do......................... 2,841,000

27. Robinson 2........................................... ......do......................... 2,841,000

28. Salem 1.............................................. ......do......................... 2,841,000

29. Salem 2.............................................. ......do......................... 2,841,000

30. Seabrook 1........................................... ......do......................... 2,841,000

31. South Texas 1........................................ ......do......................... 2,841,000

32. South Texas 2........................................ ......do......................... 2,841,000

33. Summer 1............................................. ......do......................... 2,841,000

34. Surry 1.............................................. ......do......................... 2,841,000

35. Surry 2.............................................. ......do......................... 2,841,000

36. Turkey Point 3....................................... ......do......................... 2,841,000

37. Turkey Point 4....................................... ......do......................... 2,841,000

38. Vogtle 1............................................. ......do......................... 2,841,000

39. Vogtle 2............................................. ......do......................... 2,841,000

40. Wolf Creek 1......................................... ......do......................... 2,841,000

41. Zion 1............................................... ......do......................... 2,841,000

42. Zion 2............................................... ......do......................... 2,841,000

43. Catawba 1............................................ PWR--Ice condenser............... 2,840,000

44. Catawba 2............................................ ......do......................... 2,840,000

45. Cook 1............................................... ......do......................... 2,840,000

46. Cook 2............................................... ......do......................... 2,840,000

47. McGuire 1............................................ ......do......................... 2,840,000

48. McGuire 2............................................ ......do......................... 2,840,000

49. Sequoyah 1........................................... ......do......................... 2,840,000

50. Sequoyah 2........................................... ......do......................... 2,840,000

Combustion engineering:

1. Arkansas 2............................................ PWR large dry containment........ 2,840,000

2. Calvert Cliffs 1...................................... ......do......................... 2,840,000

3. Calvert Cliffs 2...................................... ......do......................... 2,840,000

4. Ft. Calhoun 1......................................... ......do......................... 2,840,000

5. Maine Yankee.......................................... ......do......................... 2,840,000

6. Millstone 2........................................... ......do......................... 2,840,000

7. Palisades............................................. ......do......................... 2,840,000

8. Palo Verde 1.......................................... ......do......................... 2,838,000

9. Palo Verde 2.......................................... ......do......................... 2,838,000

10. Palo Verde 3......................................... ......do......................... 2,838,000

11. San Onofre 2......................................... ......do......................... 2,838,000

12. San Onofre 3......................................... ......do......................... 2,838,000

13. St. Lucie 1.......................................... ......do......................... 2,840,000

14. St. Lucie 2.......................................... ......do......................... 2,840,000

15. Waterford 3.......................................... ......do......................... 2,840,000

Babcock & Wilcox:

1. Arkansas 1............................................ ......do......................... 2,840,000

2. Crystal River 3....................................... ......do......................... 2,840,000

3. Davis Besse 1......................................... ......do......................... 2,840,000

4. Oconee 1.............................................. ......do......................... 2,840,000

5. Oconee 2.............................................. ......do......................... 2,840,000

6. Oconee 3.............................................. ......do......................... 2,840,000

7. Three Mile Island 1................................... ......do......................... 2,840,000

General Electric:

1. Browns Ferry 1........................................ Mark I........................... 2,821,000

2. Browns Ferry 2........................................ ......do......................... 2,821,000

3. Browns Ferry 3........................................ ......do......................... 2,821,000

4. Brunswick 1........................................... ......do......................... 2,821,000

5. Brunswick 2........................................... ......do......................... 2,821,000

6. Clinton 1............................................. Mark III......................... 2,821,000

7. Cooper................................................ Mark I........................... 2,821,000

8. Dresden 2............................................. ......do......................... 2,821,000

9. Dresden 3............................................. ......do......................... 2,821,000

10. Duane Arnold......................................... ......do......................... 2,821,000

11. Fermi 2.............................................. ......do......................... 2,821,000

12. Fitzpatrick.......................................... ......do......................... 2,821,000

13. Grand Gulf 1......................................... Mark III......................... 2,821,000

14. Hatch 1.............................................. Mark I........................... 2,821,000

15. Hatch 2.............................................. ......do......................... 2,821,000

16. Hope Creek 1......................................... ......do......................... 2,821,000

17. LaSalle 1............................................ Mark II.......................... 2,821,000

18. LaSalle 2............................................ ......do......................... 2,821,000

19. Limerick 1........................................... ......do......................... 2,821,000

20. Limerick 2........................................... ......do......................... 2,821,000

21. Millstone 1.......................................... Mark I........................... 2,821,000

22. Monticello........................................... ......do......................... 2,821,000

23. Nine Mile Point 1.................................... ......do......................... 2,821,000

24. Nine Mile Point 2.................................... Mark II.......................... 2,821,000

25. Oyster Creek......................................... Mark I........................... 2,821,000

26. Peach Bottom 2....................................... ......do......................... 2,821,000

27. Peach Bottom 3....................................... ......do......................... 2,821,000

28. Perry 1.............................................. Mark III......................... 2,821,000

29. Pilgrim.............................................. Mark I........................... 2,821,000

30. Quad Cities 1........................................ ......do......................... 2,821,000

31. Quad Cities 2........................................ ......do......................... 2,821,000

32. River Bend 1......................................... Mark III......................... 2,821,000

33. Susquehanna 1........................................ Mark II.......................... 2,821,000

34. Susquehanna 2........................................ ......do......................... 2,821,000

35. Vermont Yankee....................................... Mark I........................... 2,821,000

36. Washington Nuclear 2................................. Mark II.......................... 2,818,000

Other Reactor:

1. Big Rock Point........................................ GE dry containment............... 2,821,000

----------------------------------------------------------------------------------------------------------------

The ``Other Reactor'' listed in Table V was not included in the fee

base because historically Big Rock Point has been granted a partial

exemption from the annual fees. The NRC proposes to grant a similar

partial exemption in FY 1994 to Big Rock Point, a smaller older

reactor, based on a request filed with the NRC in accordance with

Sec. 171.11.

Paragraph (b)(3) would be revised to change the fiscal year

references from FY 1993 to FY 1994. Paragraph (c)(2) would be amended

to show the amount of the surcharge for FY 1994. This surcharge is

added to the base annual fee for each operating power reactor shown in

Table V. The purpose of this surcharge is to recover those NRC budgeted

costs that are not directly or solely attributable to operating power

reactors but nevertheless must be recovered to comply with the

requirements of OBRA-90. The NRC has continued its previous policy

decision to recover these costs from operating power reactors.

The FY 1994 budgeted costs related to the additional charge and the

amount of the charge are calculated as follows:

------------------------------------------------------------------------

FY 1994

Category of costs budgeted

costs

------------------------------------------------------------------------

1. Activities not attributable to an existing NRC licensee or

class of licensee:

a. reviews for DOE/DOD reactor projects, and West Valley

Demonstration Project; $2.4

b. international cooperative safety program and

international safeguards activities; and 8.2

c. low level waste disposal generic activities;............. 6.0

2. Activities not assessed Part 170 licensing and inspection

fees or Part 171 annual fees based on Commission policy:

a. Licensing and inspection activities associated with

nonprofit educational institutions; and 7.8

b. costs not recovered from Part 171 for small entities..... 5.3

---------

Total budgeted costs.................................... $29.7

------------------------------------------------------------------------

The annual additional charge is determined as follows:

TP10MY94.001

On the basis of this calculation, an operating power reactor,

Beaver Valley 1, for example, would pay a base annual fee of $2,841,000

and an additional charge of $275,000 for a total annual fee of

$3,116,000 for FY 1994.

Paragraph (d) would be revised to show, in summary form, the amount

of the total FY 1994 annual fee, including the surcharge, to be

assessed for each major type of operating power reactor.

Paragraph (e) would be revised to show the amount of the FY 1994

annual fee for nonpower (test and research) reactors. In FY 1994,

$373,000 in costs are attributable to those commercial and non-exempt

Federal government organizations that are licensed to operate test and

research reactors. Applying these costs uniformly to those nonpower

reactors subject to fees results in an annual fee of $62,200 per

operating license. The Energy Policy Act establishes an exemption for

certain Federally-owned research reactors that are used primarily for

educational training and academic research purposes where the design of

the reactor satisfies certain technical specifications set forth in the

legislation. Consistent with this legislative requirement, the NRC

granted an exemption from annual fees for FY 1992 and FY 1993 to the

Veterans Administration Medical Center in Omaha, Nebraska, the U.S.

Geological Survey for its reactor in Denver, Colorado, and the Armed

Forces Radiobiological Institute in Bethesda, Maryland for its research

reactor. This exemption was initially codified in the July 20, 1993 (58

FR 38695), final fee rule at Sec. 171.11(a) and more recently in the

March 17, 1994 (59 FR 12543) final rule at Sec. 171.11(a)(2). The NRC

intends to continue to grant exemptions from the annual fee to those

Federally owned reactors who meet the exemption criteria as specified

in Sec. 171.11. The NRC is proposing to amend Sec. 171.11(a)(2) to

exempt from annual fees the research reactor owned by the Rhode Island

Atomic Energy Commission.

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.

Sec. 171.16(c) covers the fees assessed for those licensees that

can qualify as small entities under NRC size standards. Currently, the

NRC assesses two fees for licensees that qualify as small entities

under the NRC's size standards. In general, licensees with gross annual

receipts of $250,000 to $3.5 million pay a maximum annual 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 $250,000 and

small governmental jurisdictions with a population of less than 20,000.

Paragraph (d) would be revised to reflect the FY 1994 budgeted

costs for materials licensees, including Government agencies, licensed

by the NRC. These fees are necessary to recover the FY 1994 generic

costs totalling $63.7 million that apply to fuel facilities, uranium

recovery facilities, spent fuel facilities, holders of transportation

certificates and QA program approvals, and other materials licensees,

including holders of sealed source and device registrations.

Fee Category 18 would be amended to assess fees to the Department

of Energy (DOE) for use of the general license provided under 10 CFR

40.27. Currently, DOE is billed for the issuance of transportation

Certificates of Compliance. The general license fulfills a requirement

of the Uranium Mill Tailings Radiation Control Act of 1978 (UMTRCA)

(Pub. L. 95-604) that the perpetual custodian of reclaimed uranium mill

tailings piles be licensed by the NRC. The Sec. 40.27 general license

covers only post-reclamation closure custody and site surveillance. In

September 1993, DOE became a general licensee of the NRC because post-

reclamation closure of the Spook, Wyoming site had been achieved.

Because DOE now holds an NRC license, it is subject to annual fees. The

NRC had previously indicated its intent in the FY 1991 final fee rule

to bill DOE for UMTRCA costs once post-closure was achieved and the

sites were licensed by the Government (56 FR 31481, July 10, 1991). As

a result, DOE would be billed for the costs associated with NRC's

UMTRCA review of all activities associated with the facilities assigned

to DOE under UMTRCA. As with other licensees, the annual fee for this

class of licensees (DOE UMTRCA facilities) will recover the generic and

other regulatory costs not recovered through 10 CFR part 170 fees.

Because DOE, as a Federal agency, cannot be assessed Part 170 fees

under the IOAA, the NRC proposes to assess annual fees for the total

costs of DOE UMTRCA activities to DOE.

Tables VI and VII show the NRC program elements and resources that

are attributable to fuel facilities and materials users, respectively.

The costs attributable to the uranium recovery class of licensees are

those associated with uranium recovery licensing and inspection. For

transportation, the costs are those budgeted for transportation

research, licensing, and inspection. Similarly, the budgeted costs for

spent fuel storage are those for spent fuel storage research,

licensing, and inspection.

Table VI.--Allocation of NRC FY 1994 Budget to Fuel Facility Base

Fees\1\

------------------------------------------------------------------------

Total program element Allocated to fuel

-------------------------- facility

-------------------------

Program FTE Program

support $,K support $,K FTE

------------------------------------------------------------------------

NMLL (research):

Radiation

protection/heal

th effects..... $1,575 5.3 315 1.1

Environmental

policy and

Decommissioning 2,410 9.0 241 .9

--------------------------------------

NMLL (RES)

program total ........... ........... 556 2.0

======================================

NMLL (NMSS)

Fuel cycle

safety and

safeguards..... 4,783 85.8 2,432 57.1

Event evaluation 0 14.9 0 4.2

Decommissioning. 2,215 30.8 309 10.5

Uranium recovery

(DAM SAFETY)... 250 7.6 3 0

--------------------------------------

NMLL (NMSS)

program total ........... ........... 2,744 71.8

======================================

NMLL (MSIRIE)...

Incident

response....... ........... ........... 0 1.0

Enforcement..... ........... ........... 0 1.2

--------------------------------------

NMLL MSIRIE

program total ........... ........... 0 2.2

---------------------------------------------------

Total NMLL.. ........... ........... 3,300 76.0

--------------------------------------

Total base fee

amount

allocated to

fuel

facilities... ........... ........... $20.8

\2\million

Less part 170

fuel facility

fees......... ........... ........... 4.0

million

-------------

Part 171 base fees

for fuel facilities ........... ........... 16.8

million

------------------------------------------------------------------------

\1\Base annual fee includes all costs attributable to the fuel facility

class of licensees. The base fee does not include costs allocated to

fuel facilities for policy reasons.

\2\Amount is obtained by multiplying the direct FTE times the rate per

FTE and adding the program support funds.

Table VII.--Allocation of FY 1994 Budget to Material Users' Base Fees\1\

------------------------------------------------------------------------

Total Allocated to materials

-------------------------- users

-------------------------

Program Program

support $,K FTE support $,K FTE

------------------------------------------------------------------------

NMLL (Research):

Materials

licensee

performance.... $450 1.2 $405 1.1

Materials

regulatory

standards...... 1,495 12.2 1,346 11.0

Radiation

protection/heal

th effects..... 1,575 5.3 1,134 3.8

Environmental

policy and

decommissioning 2,410 9.0 1,085 4.1

--------------------------------------

Total NMLL

(RES)........ ........... ........... 3,970 20.0

======================================

NMLL (NMSS):

Licensing/inspec

tion of

materials users $965 109.3 869 99.5

Event Evaluation ........... 16.2 ........... 11.4

Information

technology--NMS

S.............. 1,100 ........... 89 ...........

Decommissioning. 2,215 30.8 1,707 12.0

Low level waste--

on site

disposal....... 592 14.3 71 2.3

--------------------------------------

Total NMLL

(NMSS)....... ........... ........... 2,736 125.2

======================================

NMLL (MSIRIE):

Analysis and

evaluation of

operational

data........... $186 6.0 167 4.5

Office of

Investigations. ........... 7.0 ........... 6.3

Office of

Enforcement.... 10 6.8 9 5.0

--------------------------------------

Total NMLL

program...... ........... ........... $6,882 161.0

======================================

Base amount

allocated to

materials users

($,M).......... ........... ........... 44.1

........... ........... \2\million

Less part 170

material users

fees........... 5.5

million

Part 171 base

fees for

material users. 38.6

million

------------------------------------------------------------------------

\1\Base annual fee includes all costs attributable to the materials

class of licensees. The base fee does not include costs allocated to

materials licensees for policy reasons.

\2\Amount is obtained by multiplying the direct FTE times the rate per

FTE and adding the program support funds.

The allocation of the NRC's $16.8 million in budgeted costs to the

individual fuel facilities is based, as in FY 1991, FY 1992, and FY

1993, primarily on the OBRA-90 conferees' guidance that licensees who

require the greatest expenditure of NRC resources should pay the

greatest annual fee. Because the two high-enriched fuel manufacturing

facilities possess strategic quantities of nuclear materials, more NRC

safeguards costs (e.g., physical security) are attributable to these

facilities. Likewise, more of the safety licensing and inspection costs

are allocated to the HEU facilities because more of these resources are

used for HEU facilities as compared to other facilities. However,

safety program assessment and safety event evaluation costs for fuel

facilities are uniformly allocated to HEU and LEU facilities because

these activities apply equally to each of the HEU and LEU facilities.

Using this approach, the base annual fee for each facility is shown

below.

Annual Fee

------------------------------------------------------------------------

Safeguards

and safety

------------------------------------------------------------------------

High enriched fuel:

Nuclear fuel services................................... $3,176,000

Babcock and Wilcox...................................... 3,176,000

-------------

Subtotal.............................................. 6,352,000

=============

Low Enriched Fuel:

Siemens Nuclear Power................................... 1,429,000

Babcock and Wilcox...................................... 1,429,000

General Electric........................................ 1,429,000

Westinghouse............................................ 1,429,000

Combustion Engineering (Hematite)....................... 1,429,000

General Atomic.......................................... 1,429,000

-------------

Subtotal............................................ 8,574,000

=============

UF6 Conversion

Allied Signal Corp...................................... 1,114,000

Other fuel facilities (3 facilities at $254,000 each)... 762,000

-------------

Total............................................... 16,802,000

------------------------------------------------------------------------

One of Combustion Engineering's (CE) low enriched uranium fuel

facilities has not been included in the fee base because of the D.C.

Circuit Court of Appeals decision of March 16, 1993, directing the NRC

to grant an exemption for FY 1991 to Combustion Engineering for one of

its two facilities. As a result of the Court's decision, the NRC

proposes to grant an exemption to one of CE's low enriched uranium fuel

facilities for FY 1994. The NRC will therefore exclude this facility

from the calculation of the FY 1994 annual fees for the low enriched

fuel category.

Of the $2.1 million attributable to the uranium recovery class of

licensees, about $1.5 million will be assessed to the Department of

Energy (DOE) to recover the costs associated with DOE facilities under

the Uranium Mill Tailings Radiation Control Act of 1978 (UMTRCA). These

costs were previously recovered from operating power reactors because

DOE was not an NRC licensee prior to September 1993 and therefore could

not be billed under Part 171. In September 1993, DOE became a general

licensee of the NRC because post-reclamation closure of the Spook

Wyoming site had been achieved. It is estimated that approximately 44

percent of the remaining costs of $639,000 for uranium recovery is

attributable to uranium mills (Class I facilities). Approximately 39

percent of the $639,000 for uranium recovery is attributable to those

solution mining licensees who do not generate uranium mill tailings

(Class II facilities). The remaining 17 percent is allocated to the

other uranium recovery facilities (e.g. extraction of metals and rare

earths). The resulting annual fees for each class of licensee are:

Class I facilities--$94,300

Class II facilities--$41,200

Other facilities-- $36,200

The annual fees for FY 1994 for the uranium recovery class of

licensees are about 40 percent less than the FY 1992 fees and are about

60 percent higher than the FY 1993 annual fees. The total amount of

fees that must be recovered from the uranium recovery class has

decreased by about 10 percent compared to FY 1993; however, the annual

fee per facility has increased for two basic reasons. First the amount

that is expected to be recovered through Part 170 fees has decreased as

a result of completing the licensing of the Envirocare 11.e(2)

byproduct disposal facility. This requires relatively more costs to be

recovered through annual fees. The second cause of the increases is a

decrease in the number of licensees in the class to be assessed annual

fees for FY 1994.

For spent fuel storage licenses, the generic costs of $2.2 million

have been spread uniformly among those licensees who hold specific or

general licenses for receipt and storage of spent fuel at an ISFSI.

This results in an annual fee of $363,500.

To equitably and fairly allocate the $38.6 million attributable to

the approximately 6,500 diverse material users and registrants, the NRC

has continued to base the annual fee on the Part 170 application and

inspection fees. Because the application and inspection fees are

indicative of the complexity of the license, this approach continues to

provide a proxy for allocating the costs to the diverse categories of

licensees based on how much it costs NRC to regulate each category. The

fee calculation also continues to consider the inspection frequency.

Inspection frequency is indicative of the safety risk and resulting

regulatory costs associated with the categories of licensees. In

summary, the annual fee for these categories of licenses is developed

as follows:

Annual Fee=(Application Fee+Inspection Fee/Inspection

Priority) x Constant+ (Unique Category Costs).

The constant is the multiple necessary to recover $38.6 million and

is 2.6 for FY 1994. The unique costs are any special costs that the NRC

has budgeted for a specific category of licensees. For FY 1994, unique

costs of approximately $2.6 million were identified for the medical

improvement program which is attributable to medical licensees.

Materials annual fees for FY 1994 are 13-17% higher compared to the FY

1993 annual fees. There are two basic reasons for the changes in the

fees from FY 1993. First, the FY 1994 budgeted amount attributable to

materials licensees is about 10 percent higher than the comparable FY

1993 amount. Second, the number of licensees to be assessed annual fees

in FY 1994 has decreased (from about 6,800 to about 6,500 resulting in

a 4% increase in fees). The materials fees must be established at the

proposed levels in order to comply with the mandate of OBRA-90 to

recover approximately 100 percent of the NRC's FY 1994 budget

authority. 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.

To recover the $4.0 million attributable to the transportation

class of licensees, about $923,000 would be assessed to the Department

of Energy (DOE) to cover all of its transportation casks under Category

18. The remaining transportation costs for generic activities ($3.1

million) are allocated to holders of approved QA plans. The annual fee

for approved QA plans is $64,700 for users and fabricators and $900 for

users only.

The amount or range of the FY 1994 base annual fees for all

materials licensees is summarized as follows:

Materials Licenses Base Annual Fee Ranges

------------------------------------------------------------------------

Category of license Annual fees

------------------------------------------------------------------------

Part 70--High enriched fuel........ $3.2 million.

Part 70--Low enriched fuel......... $1.4 million.

Part 40--UF6 conversion............ $1.1 million.

Part 40--Uranium recovery.......... $36,200 to $94,300.

Part 30--Byproduct material........ \1\$970 to $30,900.

Part 71--Transportation of $900 to $64,700.

radioactive material.

Part 72--Independent storage of $363,500.

spent nuclear fuel.

------------------------------------------------------------------------

\1\Excludes the annual fee for a few military ``master'' materials

licenses of broad-scope issued to Government agencies, which is

$430,500.

Paragraph (e) would be amended to establish the additional charge

which is to be added to the base annual fees shown in paragraph (d) of

this final rule. The Commission is continuing the approach used in FY

1993 so as to assess the budgeted LLW costs to two broad categories of

licensees (large LLW generators and small LLW generators) based on

historical disposal data. This surcharge continues to be shown, for

convenience, with the applicable categories in paragraph (d). Although

these NRC LLW disposal regulatory activities are not directly

attributable to regulation of NRC materials licensees, the costs

nevertheless must be recovered in order to comply with the requirements

of OBRA-90. For FY 1994, the additional charge recovers approximately

18 percent of the NRC budgeted costs of $8.1 million relating to LLW

disposal generic activities from small generators, which are comprised

of materials licensees that dispose of LLW. The percentage distribution

reflects the deletion of LLW disposed by Agreement State licensees. The

FY 1994 budgeted costs related to the additional charge for LLW and the

amount of the charge are calculated as follows:

------------------------------------------------------------------------

FY 1994

budgeted

Category of costs costs

(millions)

------------------------------------------------------------------------

1. Activities not attributable to an existing NRC licensee

or class of licensee, i.e., LLW disposal generic activities $8.1

------------------------------------------------------------------------

Of the $8.1 million in budgeted costs shown above for LLW

activities, 82 percent of the amount ($6.7 million) are allocated to

the 120 large waste generators (reactors and fuel facilities) included

in 10 CFR Part 171. This results in an additional charge of $55,600 per

facility. Thus, the LLW charge will be $55,600 per HEU, LEU, UF6

facility, and each of the other 3 fuel facilities. The remaining $1.4

million is allocated to the material licensees in categories that

generate low level waste (965 licensees) as follows: $1,500 per

materials license except for those in Category 17. Those licensees that

generate a significant amount of low level waste for purposes of the

calculation of the $1,500 surcharge are in fee Categories 1.B, 1.D,

2.C, 3.A, 3.B, 3.C, 3.L, 3.M, 3.N, 4.A, 4.B, 4.C, 4.D, 5.B, 6.A, and

7.B. The surcharge for licenses in fee Category 17, which also generate

and/or dispose of low level waste, is $22,800.

Of the $6.3 million not recovered from small entities, $1.0 million

would be allocated to fuel facilities and other materials licensees.

This results in a surcharge of $170 per category for each fuel facility

and materials licensee that is not eligible for the small entity fee.

On the basis of this calculation, a fuel facility (a high enriched

fuel fabrication licensee, for example) would pay a base annual fee of

$3,176,000 and an additional charge of $55,770 for LLW activities and

small entity costs. A medical center with a broad-scope program would

pay a base annual fee of $30,900 and an additional charge of $1,670,

for a total FY 1994 annual fee of $32,570.

Section 171.17 Proration

10 CFR 171.17 would be amended to add a proration provision for

materials licenses and to revise the provision for reactors. The annual

fee for materials licenses would be prorated based on applications

filed after October 1 of the fiscal year either to reduce the scope of

a license or to terminate a license. Those materials licensees who file

applications between October 1 and March 31 of the fiscal year to

downgrade the license or terminate the license would pay one-half the

annual fee stated in Sec. 171.16(d) for the affected fee category(ies).

Those materials licensees filing applications to downgrade or terminate

a license on or after April 1 of the fiscal year would pay the full

annual fee. Those licensees who file for termination or downgrade must

also permanently cease operations of those licensed activities during

the periods mentioned for the fee to be reduced. Similarly, materials

licensees who were issued new licenses or licenses of increased scope

during the fiscal year would also be charged a prorated annual fee

based on the date of issuance of the new license or license amendment

increasing the scope. New materials licenses issued during the period

October 1 through March 31 would be assessed one-half of the FY 1994

annual fee stated in Sec. 171.16(d) for the applicable fee categories.

New licenses issued on or after April 1 would not be assessed the FY

1994 annual fee. Materials licenses amended during the period October 1

through March 31 to increase the scope would be assessed one-half the

annual fee for the new fee category(ies). Materials licenses amended on

or after April 1 to increase the scope would not be assessed the annual

fee for the new fee category(ies).

The NRC proposes to amend the proration provision in Sec. 171.17

applicable to reactors to provide that for licensees who have requested

a license amendment to withdraw operating authority permanently during

the FY the annual fee will be prorated based on the number of days

during the FY the operating license was in effect before the

possession-only license was issued or the license was terminated.

Footnote 1 of 10 CFR 171.16(d) would be amended to provide for a

waiver of the annual fees for those 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, 1993, and permanently

cease licensed activities entirely by September 30, 1993. All other

licensees and approval holders who held a license or approval on

October 1, 1993 would be subject to the FY 1994 annual fees.

Section 171.19 Payment

This section would be revised to give credit for partial payments

made by certain licensees in FY 1994 toward their FY 1994 annual fees.

The NRC anticipates that the first, second, and third quarterly

payments for FY 1994 will have been made by operating power reactor

licensees and some materials licensees before the final rule is

effective. Therefore, NRC will credit payments received for those three

quarters toward the total annual fee to be assessed. The NRC will

adjust the fourth quarterly bill in order to recover the full amount of

the revised annual fee or to make refunds, as necessary. As in FY 1993,

payment of the annual fee is due on the effective date of the rule and

interest accrues from the effective date of the rule. However, interest

will be waived if payment is received within 30 days from the effective

date of the rule.

During the past three 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 in

fact either not using the material to conduct operations or had

disposed of the material and no longer needed the license. In

responding to licensees about this matter, the NRC has stated that

annual fees are assessed based on whether a licensee holds a valid NRC

license that authorizes possession and use of radioactive material.

Whether or not a licensee is actually conducting operations using the

material is a matter of licensee discretion. The NRC cannot control

whether a licensee elects to possess and use radioactive material once

it receives a license from the NRC. Therefore, the NRC reemphasizes

that the annual fee will be assessed based on whether a licensee holds

a valid NRC license that authorizes possession and use of radioactive

material. To remove any uncertainty, the NRC issued minor clarifying

amendments to 10 CFR 171.16, footnotes 1 and 7 on July 20, 1993 (58 FR

38700).

IV. 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.

V. 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 1980 (44 U.S.C. 3501 et seq.).

VI. Regulatory Analysis

With respect to 10 CFR Part 170, this proposed rule was developed

pursuant to Title V of the Independent Offices Appropriation Act of

1952 (IOAA) (31 U.S.C. 9701) and the Commission's fee guidelines. When

developing these guidelines the Commission took into account guidance

provided by the U.S. Supreme Court on March 4, 1974, in its decision of

National Cable Television Association, Inc. v. United States, 415 U.S.

36 (1974) and Federal Power Commission v. New England Power Company,

415 U.S. 345 (1974). In these decisions, the Court held that the IOAA

authorizes an agency to charge fees for special benefits rendered to

identifiable persons measured by the ``value to the recipient'' of the

agency service. The meaning of the IOAA was further clarified on

December 16, 1976, by four decisions of the U.S. Court of Appeals for

the District of Columbia, National Cable Television Association v.

Federal Communications Commission, 554 F.2d 1094 (D.C. Cir. 1976);

National Association of Broadcasters v. Federal Communications

Commission, 554 F.2d 1118 (D.C. Cir. 1976); Electronic Industries

Association v. Federal Communications Commission, 554 F.2d 1109 (D.C.

Cir. 1976) and Capital Cities Communication, Inc. v. Federal

Communications Commission, 554 F.2d 1135 (D.C. Cir. 1976). These

decisions of the Courts enabled the Commission to develop fee

guidelines that are still used for cost recovery and fee development

purposes.

The Commission's fee guidelines were upheld on August 24, 1979, by

the U.S. Court of Appeals for the Fifth Circuit in Mississippi Power

and Light Co. v. U.S. Nuclear Regulatory Commission, 601 F.2d 223 (5th

Cir. 1979), cert. denied, 444 U.S. 1102 (1980). The Court held that--

(1) The NRC had the authority to recover the full cost of providing

services to identifiable beneficiaries;

(2) The NRC could properly assess a fee for the costs of providing

routine inspections necessary to ensure a licensee's compliance with

the Atomic Energy Act and with applicable regulations;

(3) The NRC could charge for costs incurred in conducting

environmental reviews required by NEPA;

(4) The NRC properly included the costs of uncontested hearings and

of administrative and technical support services in the fee schedule;

(5) The NRC could assess a fee for renewing a license to operate a

low-level radioactive waste burial site; and

(6) The NRC's fees were not arbitrary or capricious.

With respect to 10 CFR Part 171, on November 5, 1990, the Congress

passed Public Law 101-508, the Omnibus Budget Reconciliation Act of

1990 (OBRA-90) which required that for FYs 1991 through 1995,

approximately 100 percent of the NRC budget authority be recovered

through the assessment of fees. OBRA-90 was amended in 1993 to extend

the 100 percent fee recovery requirement for NRC through 1998. To

accomplish this statutory requirement, the NRC, in accordance with

Sec. 171.13, is publishing the proposed amount of the FY 1994 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 1994 budget of

$535.0 million less the amounts collected from Part 170 fees and the

funds directly appropriated from the NWF to cover the NRC's high level

waste program;

(2) The annual fees shall, to the maximum extent practicable, have

a reasonable relationship to the cost of regulatory services provided

by the Commission; and

(3) The annual fees be assessed to those licensees the Commission,

in its discretion, determines can fairly, equitably, and practicably

contribute to their payment.

Therefore, when developing the annual fees for operating power

reactors the NRC continued to consider the various reactor vendors, the

types of containment, and the location of the operating power reactors.

The annual fees for fuel cycle licensees, materials licensees, and

holders of certificates, registrations and approvals and for licenses

issued to Government agencies take into account the type of facility or

approval and the classes of the licensees.

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).

VII. Regulatory Flexibility Analysis

The NRC is required by the Omnibus Budget Reconciliation Act of

1990 to recover approximately 100 percent of its budget authority

through the assessment of user fees. OBRA-90 further requires that the

NRC establish a schedule of charges that fairly and equitably allocates

the aggregate amount of these charges among licensees.

This proposed rule establishes the schedules of fees that are

necessary to implement the Congressional mandate for FY 1994. The

proposed rule results in an increase in the fees charged to most

licensees, and holders of certificates, registrations, and approvals,

including those licensees who are classified as small entities under

the Regulatory Flexibility Act. The Regulatory Flexibility Analysis,

prepared in accordance with 5 U.S.C. 604, is included as Appendix A to

this proposed rule.

VIII. 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 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.

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, 88 Stat. 1242, as

amended (42 U.S.C. 5841); sec. 205, Pub. L. 101-576, 104 Stat. 2842,

(31 U.S.C. 902).

2. In Sec. 170.3, the definition special projects is revised to

read as follows:

Sec. 170.3 Definitions.

* * * * *

Special projects means those requests submitted to the Commission

for review for which fees are not otherwise specified in this chapter.

Examples of special projects include, but are not limited to, topical

and other report reviews, early site reviews, waste solidification

facilities, route approvals for shipment of radioactive materials, and

services provided to certify licensee, vendor, or other private

industry personnel as instructors for part 55 reactor operators. As

used in this part, special projects does not include requests/reports

submitted to the NRC:

(1) In response to a Generic Letter or NRC Bulletin which 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;

(2) 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

(3) As a means of exchanging information between industry

organizations and the NRC for the purpose of supporting generic

regulatory improvements or efforts.

* * * * *

3. Section 170.20 is revised to read as follows:

Sec. 170.20 Average cost per professional staff-hour.

Fees for permits, licenses, amendments, renewals, special projects,

part 55 requalification and replacement examinations and tests, other

required reviews, approvals, and inspections under Secs. 170.21 and

170.31 that are based upon the full costs for the review or inspection

will be calculated using a professional staff-hour rate equivalent to

the sum of the average cost to the agency for a professional staff

member, including salary and benefits, administrative support, travel,

and certain program support. The professional staff-hour rate for the

NRC based on the FY 1994 budget is $133 per hour.

4. In Sec. 170.21, the introductory paragraph, Category J, Category

K, and footnotes 1 and 2 to the table are revised and a new footnote 4

is added to read as follows:

Sec. 170.21 Schedule of fees for production and utilization

facilities, review of standard referenced design approvals, special

projects, inspections and import and export licenses.

Applicants for construction permits, manufacturing licenses,

operating licenses, import and export licenses, approvals of facility

standard reference designs, requalification and replacement

examinations for reactor operators, and special projects and holders of

construction permits, licenses, and other approvals shall pay fees for

the following categories of services.

Schedule of Facility Fees

[See footnotes at end of table]

------------------------------------------------------------------------

Facility categories and type of fees Fees\1\ \2\

------------------------------------------------------------------------

* * * * * * *

J. Special Projects:\4\

Approvals and preapplication/licensing Full cost

activities..

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

K. Import and export licenses:

Licenses for the import and export

only of production and utilization

facilities or the import and 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

components which must be reviewed by

the Commission and the Executive

Branch, for example, actions under 10

CFR 110.40(b).

Application--new license............ $8,600.

Amendment........................... $8,600.

2. Application for import or export of

reactor components and initial

exports of other equipment requiring

Executive Branch review only, for

example, those actions under 10 CFR

110.41(a)(1)-(8).

Application--new license............ $5,300.

Amendment........................... $5,300.

3. Application for export of

components requiring foreign

government assurances only.

Application--new license............ $3,300.

Amendment........................... $3,300.

4. Application for export or import of

other facility components and

equipment not requiring Commission

review, Executive Branch review, or

foreign government assurances.

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

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

5. Minor amendment of any export or

import license to extend the

expiration date, change domestic

information, or make other revisions

which do not require analysis or

review.

Amendment........................... $130

------------------------------------------------------------------------

\1\Fees will not be charged for orders issued by the Commission pursuant

to Sec. 2.202 of this chapter or for amendments resulting specifically

from the requirements of these types of Commission orders. Fees will

be charged for approvals issued under a specific exemption provision

of the Commission's regulations under Title 10 of the Code of Federal

Regulations (e.g. Secs. 50.12, 73.5) and any other sections now or

hereafter in effect regardless of whether the approval is in the form

of a license amendment, letter of approval, safety evaluation report,

or other form. Fees for licenses in this schedule that are initially

issued for less than full power are based on review through the

issuance of a full power license (generally full power is considered

100 percent of the facility's full rated power). Thus, if a licensee

received a low power license or a temporary license for less than full

power and subsequently receives full power authority (by way of

license amendment or otherwise), the total costs for the license will

be determined through that period when authority is granted for full

power operation. If a situation arises in which the Commission

determines that full operating power for a particular facility should

be less than 100 percent of full rated power, the total costs for the

license will be at that determined lower operating power level and not

at the 100 percent capacity.

\2\Full cost fees will be determined based on the professional staff

time and appropriate contractual support services expended. For

applications currently on file and for which fees are determined based

on the full cost expended for the review, the professional staff hours

expended for the review of the application up to the effective date of

this rule will be determined at the professional rates established for

the rules that became effective on June 20, 1984, January 30, 1989,

July 2, 1990, August 9, 1991, August 24, 1992, and August 19, 1993, as

appropriate. For those applications currently on file for which review

costs have reached an applicable fee ceiling established by the June

20, 1984, and July 2, 1990, rules but are still pending completion of

the review, the cost incurred after any applicable ceiling was reached

through January 29, 1989, will not be billed to the applicant. Any

professional staff-hours expended above those ceilings on or after

January 30, 1989, will be assessed at the applicable rates established

by Sec. 170.20, as appropriate, except for topical reports whose costs

exceed $50,000. Costs which exceed $50,000 for any topical report,

amendment, revision or supplement to a topical report completed or

under review from January 30, 1989, through August 8, 1991, will not

be billed to the applicant. Any professional hours expended on or

after August 9, 1991, will be assessed at the applicable rate

established in Sec. 170.20. In no event will the total review costs be

less than twice the hourly rate shown in Sec. 170.20.

* * * * * * *

\4\Fees will not be assessed for requests/reports submitted to the NRC:

1. 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;

2. 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

3. As a means of exchanging information between industry organizations

and the NRC for the purpose of supporting generic regulatory

improvements or efforts.

5. Section 170.31 is revised to read as follows:

Sec. 170.31 Schedule of fees for materials licenses and other

regulatory services, including inspections, and import and export

licenses.

Applicants for materials licenses, import and export licenses, and

other regulatory services and holders of materials licenses, or import

and export licenses shall pay fees for the following categories of

services. This schedule includes fees for health and safety and

safeguards inspections where applicable.

Schedule of Materials Fees

[See footnotes at end of table]

------------------------------------------------------------------------

Category of materials licenses and type of

fees\1\ Fee\2\\3\

------------------------------------------------------------------------

1. Special nuclear material:

A. Licenses for possession and use of

200 grams or more of plutonium in

unsealed form or 350 grams or more of

contained U-235 in unsealed form or

200 grams or more of U-233 in

unsealed form. This includes

applications to terminate licenses as

well as licenses authorizing

possession only:

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

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

B. Licenses for receipt and storage of

spent fuel at an independent spent

fuel storage installation (ISFSI):

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

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

C. Licenses for possession and use of

special nuclear material in sealed

sources contained in devices used in

industrial measuring systems,

including x-ray fluorescence

analyzers:\4\

Application--New license.......... $570

Renewal........................... 680

Amendment......................... 360

Inspections....................... 670

D. All other special nuclear material

licenses, except licenses authorizing

special nuclear material in unsealed

form in combination that would

constitute a critical quantity, as

defined in Sec. 150.11 of this

chapter, for which the licensee shall

pay the same fees as those for

Category 1A:\4\

Application--New license.......... 600

Renewal........................... 430

Amendment......................... 330

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

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. Licenses for possession and use of

source material in recovery

operations such as milling, in-situ

leaching, heap-leaching, refining

uranium mill concentrates to uranium

hexafluoride, ore buying stations,

ion exchange facilities and in

processing of ores containing source

material for extraction of metals

other than uranium or thorium,

including licenses authorizing the

possession of byproduct waste

material (tailings) from source

material recovery operations, as well

as licenses authorizing the

possession and maintenance of a

facility in a standby mode:

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

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

B. Licenses which authorize only the

possession, use and/or installation

of source material for shielding:

Application--New license.......... 230

Renewal........................... 160

Amendment......................... 270

Inspections....................... 560

C. All other source material licenses:

Application--New license.......... 2,500

Renewal........................... 1,400

Amendment......................... 450

Inspections....................... 2,500

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.......... 2,700

Renewal........................... 1,700

Amendment......................... 470

Inspections....................... 9,800\5\

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

Renewal........................... 2,200

Amendment......................... 600

Inspections....................... 3,000\5\

C. Licenses issued pursuant to Secs.

32.72, 32.73, and/or 32.74 of this

chapter authorizing the processing or

manufacturing and distribution or

redistribution of

radiopharmaceuticals, generators,

reagent kits and/or sources and

devices containing byproduct

material:

Application--New license.......... 3,500

Renewal........................... 3,000

Amendment......................... 490

Inspections....................... 3,400

D. Licenses and approvals issued

pursuant to Secs. 32.72, 32.73, and/

or 32.74 of this chapter authorizing

distribution or redistribution of

radiopharmaceuticals, generators,

reagent kits and/or sources or

devices not involving processing of

byproduct material:

Application--New license.......... 1,300

Renewal........................... 550

Amendment......................... 370

Inspections....................... 3,000

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.......... 930

Renewal........................... 760

Amendment......................... 330

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

F. Licenses for possession and use of

less than 10,000 curies of byproduct

material in sealed sources for

irradiation of materials in which the

source is exposed for irradiation

purposes. This category also includes

underwater irradiators for

irradiation of materials where the

source is not exposed for irradiation

purposes.

Application--New license.......... 1,300

Renewal........................... 1,000

Amendment......................... 330

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

G. Licenses for possession and use of

10,000 curies or more of byproduct

material in sealed sources for

irradiation of materials in which the

source is exposed for irradiation

purposes. This category also includes

underwater irradiators for

irradiation of materials where the

source is not exposed for irradiation

purposes.

Application--New license.......... 5,300

Renewal........................... 4,800

Amendment......................... 640

Inspections....................... 4,100

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

Renewal........................... 2,300

Amendment......................... 800

Inspections....................... 1,100

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.......... 4,600

Renewal........................... 2,700

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

Inspections....................... 1,000

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.......... 2,100

Renewal........................... 1,400

Amendment......................... 370

Inspections....................... 1,800

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.......... 2,000

Renewal........................... 1,400

Amendment......................... 270

Inspections....................... 1,000

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:

Application--New license.......... 4,100

Renewal........................... 2,200

Amendment......................... 630

Inspections....................... 4,700

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.......... 1,400

Renewal........................... 1,500

Amendment......................... 690

Inspections....................... 2,200

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, 4C, and 4D:

Application--New license.......... 1,700

Renewal........................... 2,100

Amendment......................... 680

Inspections....................... 2,400

O. Licenses for possession and use of

byproduct material issued pursuant to

part 34 of this chapter for

industrial radiography operations:

Application--New license.......... 3,800

Renewal........................... 2,900

Amendment......................... 690

Inspections....................... 3,500\5\

P. All other specific byproduct

material licenses, except those in

Categories 4A through 9D:

Application--New license.......... 570

Renewal........................... 680

Amendment......................... 360

Inspections....................... 1,500

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.......... 4,000

Renewal........................... 2,100

Amendment......................... 430

Inspections....................... 2,300

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:

Application--New license.......... 1,500

Renewal........................... 1,100

Amendment......................... 250

Inspections....................... 2,800

D. Licenses specifically authorizing

the receipt from other persons of

byproduct material as defined in

Section 11.e.(2) of the Atomic Energy

Act for possession and disposal

except those licenses subject to fees

in Category 2.A.

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

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

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

Renewal........................... 3,900

Amendment......................... 650

Inspections....................... 3,600

B. Licenses for possession and use of

byproduct material for field flooding

tracer studies:

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

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

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.......... 4,500

Renewal........................... 2,900

Amendment......................... 700

Inspections....................... 4,500

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

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

Amendment......................... 560

Inspections....................... 2,300

B. Licenses of broad scope issued to

medical institutions or two or more

physicians pursuant to parts 30, 33,

35, 40, and 70 of this chapter

authorizing research and development,

including human use of byproduct

material, except licenses for

byproduct material, source material,

or special nuclear material in sealed

sources contained in teletherapy

devices:

Application--New license.......... 2,700

Renewal........................... 3,500

Amendment......................... 500

Inspections....................... 8,700

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:

Application--New license.......... 1,100

Renewal........................... 1,400

Amendment......................... 500

Inspections....................... 2,100

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.......... 670

Renewal........................... 700

Amendment......................... 480

Inspections....................... 1,100

9. Device, product, or sealed source

safety evaluation:

A. Safety evaluation of devices or

products containing byproduct

material, source material, or special

nuclear material, except reactor fuel

devices, for commercial distribution:

Application--each device.......... 3,700

Amendment--each device............ 1,300

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

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.......... 1,900

Amendment--each device............ 670

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

C. Safety evaluation of sealed sources

containing byproduct material, source

material, or special nuclear

material, except reactor fuel, for

commercial distribution:

Application--each source.......... 800

Amendment--each source............ 270

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

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.......... 400

Amendment--each source............ 130

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

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............. 370

Renewal........................... 280

Amendment......................... 320

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

11. Review of standardized spent fuel

facilities:

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

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

12. Special projects:\6\

Approvals and preapplication/ Full Cost.

licensing activities.

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

13. A. Spent fuel storage cask Certificate

of Compliance:

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

Amendments, revisions, and Full Cost.

supplements.

Reapproval........................ Full Cost.

B. Inspections related to spent fuel Full Cost.

storage cask Certificate of

Compliance.

C. Inspections related to storage of Full Cost.

spent fuel under Sec. 72.210 of this

chapter.

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,

byproduct material, heavy water,

tritium, or nuclear grade graphite.

A. Application for import or export of

HEU and other materials which must be

reviewed by the Commission and the

Executive Branch, for example, those

actions under 10 CFR 110.40(b).

Application-new license........... 8,600

Amendment......................... 8,600

B. Application for import or export of

special nuclear material, heavy

water, nuclear grade graphite,

tritium, and source material, and

initial exports of materials

requiring Executive Branch review

only, for example, those actions

under 10 CFR 110.41(a)(2)-(8).

Application-new license........... 5,300

Amendment......................... 5,300

C. Application for export of routine

reloads of LEU reactor fuel and

exports of source material requiring

foreign government assurances only.

Application-new license........... 3,300

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

D. Application for export or import of

other materials not requiring

Commission review, Executive Branch

review or foreign government

assurances.

Application-new license........... 1,300

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

E. Minor amendment of any export or

import license to extend the

expiration date, change domestic

information or make other revisions

which do not require analysis or

review.

Amendment......................... 130

16. Reciprocity:

Agreement State licensees who conduct

activities in a non-Agreement State

under the reciprocity provisions of

10 CFR 150.20.

Application (each filing of Form 700

241).

Renewal........................... N/A

Revisions......................... 200

Inspections....................... Fees as specified in

appropriate fee categories

in this section.

------------------------------------------------------------------------

\1\Types of fees--Separate charges, as shown in the schedule, will be

assessed for preapplication consultations and reviews and applications

for new licenses and approvals, issuance of new licenses and

approvals, amendments and renewals to existing licenses and approvals,

safety evaluations of sealed sources and devices, and 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

cost; 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 an 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, 4D, 5B, 10A, 11,

12, 13A, and 14) are due upon notification by the Commission in

accordance with Sec. 170.12(b), (e), and (f).

(c) Renewal/reapproval fees--Applications for renewal of licenses and

approvals must be accompanied by the prescribed renewal fee for each

category, except that fees for applications for renewal of licenses

and approvals subject to full cost fees (fee Categories 1A, 1B, 1E,

2A, 4A, 4D, 5B, 10A, 11, 12, 13A, and 14) are due upon notification by

the Commission in accordance with Sec. 170.12(d).

(d) Amendment fees--

(1) Applications for amendments to licenses and approvals, except those

subject to fees assessed at full costs, must be accompanied by the

prescribed amendment fee for each license 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, 4D, 5B, 10A,

11, 12, 13A, and 14), amendment fees are due upon notification by the

Commission in accordance with Sec. 170.12(c).

(2) An application for amendment to a materials license or approval that

would place the license or approval in a higher fee category or add a

new fee category must be accompanied by the prescribed application fee

for the new category.

(3) An application for amendment to a license or approval that would

reduce the scope of a licensee's program to a lower fee category must

be accompanied by the prescribed amendment fee for the lower fee

category.

(4) Applications to terminate licenses authorizing small materials

programs, when no dismantling or decontamination procedure is

required, are not subject to fees.

(e) Inspection fees--Although a single inspection fee is shown in the

regulation, separate charges will be assessed for each routine and

nonroutine inspection performed, including inspections conducted by

the NRC of Agreement State licensees who conduct activities in non-

Agreement States under the reciprocity provisions of 10 CFR 150.20.

Inspections resulting from investigations conducted by the Office of

Investigations and nonroutine inspections that result from third-party

allegations are not subject to fees. If a licensee holds more than one

materials license at a single location, a fee equal to the highest fee

category covered by the licenses will be assessed if the inspections

are conducted at the same time unless the inspection fees are based on

the full cost to conduct the inspection. The fees assessed at full

cost will be determined based on the professional staff time required

to conduct the inspection multiplied by the rate established under

Sec. 170.20 plus any applicable contractual support services costs

incurred. Licenses covering more than one category will be charged a

fee equal to the highest fee category covered by the license.

Inspection fees are due upon notification by the Commission in

accordance with Sec. 170.12(g). See Footnote 5 and 6 for other

inspection notes.

\2\Fees will not be charged for orders issued by the Commission pursuant

to 10 CFR 2.202 or for amendments resulting specifically from the

requirements of these types of Commission orders. However, fees will

be charged for approvals issued under a specific exemption provision

of the Commission's regulations under Title 10 of the Code of Federal

Regulations (e.g., 10 CFR 30.11, 40.14, 70.14, 73.5, and any other

sections now or hereafter in effect) regardless of whether the

approval is in the form of a license amendment, letter of approval,

safety evaluation report, or other form. In addition to the fee shown,

an applicant may be assessed an additional fee for sealed source and

device evaluations as shown in Categories 9A through 9D.

\3\Full cost fees will be determined based on the professional staff

time and appropriate contractual support services expended. For those

applications currently on file and for which fees are determined based

on the full cost expended for the review, the professional staff hours

expended for the review of the application up to the effective date of

this rule will be determined at the professional rates established for

the final rules that became effective on June 20, 1984, January 30,

1989, July 2, 1990, August 9, 1991, August 24, 1992, and August 19,

1993 rules, as appropriate. For applications currently on file for

which review costs have reached an applicable fee ceiling established

by the June 20, 1984, and July 2, 1990, rules, but are still pending

completion of the review, the cost incurred after any applicable

ceiling was reached through January 29, 1989, will not be billed to

the applicant. Any professional staff-hours expended above those

ceilings on or after January 30, 1989, will be assessed at the

applicable rates established by Sec. 170.20, as appropriate, except

for topical reports whose costs exceed $50,000. Costs which exceed

$50,000 for each topical report, amendment, revision, or supplement to

a topical report completed or under review from January 30, 1989,

through August 8, 1991, will not be billed to the applicant. Any

professional hours expended on or after August 9, 1991, will be

assessed at the applicable rate established in Sec. 170.20. The

minimum total review cost is twice the hourly rate shown in Sec.

170.20.

\4\Licensees paying fees under Categories 1A, 1B, and 1E are not subject

to fees under Categories 1C and 1D for sealed sources authorized in

the same license except in those instances in which an application

deals only with the sealed sources authorized by the license.

Applicants for new licenses or renewal of existing licenses that cover

both byproduct material and special nuclear material in sealed sources

for use in gauging devices will pay the appropriate application or

renewal fee for fee Category 1C only.

\5\For a license authorizing shielded radiographic installations or

manufacturing installations at more than one address, a separate fee

will be assessed for inspection of each location, except that if the

multiple installations are inspected during a single visit, a single

inspection fee will be assessed.

\6\Fees will not be assessed for requests/reports submitted to the NRC:

1. 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;

2. 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

3. As a means of exchanging information between industry organizations

and the NRC for the purpose of supporting generic regulatory

improvements or efforts.

PART 171--ANNUAL FEES FOR REACTOR OPERATING LICENSES, AND FUEL

CYCLE LICENSES AND MATERIALS LICENSES, INCLUDING HOLDERS OF

CERTIFICATES OF COMPLIANCE, REGISTRATIONS, AND QUALITY ASSURANCE

PROGRAM APPROVALS AND GOVERNMENT AGENCIES LICENSED BY THE NRC

6. The authority citation for part 171 continues to read as

follows:

Authority: Sec. 7601, Pub. L. 99-272, 100 Stat. 146, as amended

by sec. 5601, Pub. L. 100-203, 101 Stat. 1330, as amended by Sec.

3201, Pub. L. 101-239, 103 Stat. 2106 as amended by sec. 6101, Pub.

L. 101-508, 104 Stat. 1388, (42 U.S.C. 2213); sec. 301, Pub. L. 92-

314, 86 Stat. 222 (42 U.S.C. 2201(w)); sec. 201, 88 Stat. 1242, as

amended (42 U.S.C. 5841); sec. 2903, Pub. L. 102-486, 106 Stat.

3125, (42 U.S.C. 2214 note).

7. In Sec. 171.11, paragraph (a)(2) is revised to read as follows:

Sec. 171.11 Exemptions.

(a) * * *

* * * * *

(2) Federally-owned and State-owned research reactors used

primarily for educational training and academic research purposes. For

purposes of this exemption, the term research reactor means a nuclear

reactor that--

(i) Is licensed by the Nuclear Regulatory Commission under section

104c. of the Atomic Energy Act of 1954 (42 U.S.C. 2134(c)) for

operation at a thermal power level of 10 megawatts or less; and

(ii) If so licensed for operation at a thermal power level of more

than 1 megawatt, does not contain--

(A) A circulating loop through the core in which the licensee

conducts fuel experiments;

(B) A liquid fuel loading; or

(C) An experimental facility in the core in excess of 16 square

inches in cross-section.

* * * * *

8. In Sec. 171.15, paragraphs (a), (b)(3), (c)(2), (d), and (e) are

revised to read as follows:

Sec. 171.15 Annual Fees: Reactor operating licenses.

(a) Each person licensed to operate a power, test, or research

reactor shall pay the annual fee for each unit for which the person

holds an operating license at any time during the Federal FY in which

the fee is due, except for those test and research reactors exempted in

Sec. 171.11(a)(1) and (a)(2).

(b) * * *

(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. The base FY 1994 annual fees for each

operating power reactor subject to fees under this section and which

must be collected before September 30, 1994, are shown in paragraph (d)

of this section.

(c) * * *

(2) The FY 1994 surcharge to be added to each operating power

reactor is $275,000. This amount is calculated by dividing the total

cost for these activities ($29.7 million) by the number of operating

power reactors (108).

(d) The FY 1994 part 171 annual fees for operating power reactors

are as follows:

Part 171 Annual Fees by Reactor Category\1\

[Fees in thousands]

----------------------------------------------------------------------------------------------------------------

Added Total fee Estimated

Reactor vendor Number Base fee charge collections

----------------------------------------------------------------------------------------------------------------

Babcock/Wilcox............................................. 7 $2,840 275 $3,115 $21,805

Combustion Eng............................................. 15 2,840 275 3,115 46,725

GE Mark I.................................................. 24 2,821 275 3,096 74,304

GE Mark II................................................. 8 2,821 275 3,096 24,768

GE Mark III................................................ 4 2,821 275 3,096 12,384

Westinghouse............................................... 50 2,841 275 3,116 $155,800

--------- ------------

Totals................................................. 108 $335,786

----------------------------------------------------------------------------------------------------------------

\1\Fees assessed will vary for plants west of the Rocky Mountains and for Westinghouse plants with ice

condensers.

(e) The annual fees for licensees authorized to operate a nonpower

(test and research) reactor licensed under part 50 of this chapter,

except for those reactors exempted from fees under Sec. 171.11(a), are

as follows:

Research reactor............................................. $62,200

Test reactor................................................. $62,200

* * * * *

9. In Sec. 171.16, the introductory text of paragraph (c) and

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

Sec. 171.16 Annual Fees: Materials Licensees, Holders of Certificates

of Compliance, Holders of Sealed Source and Device Registrations,

Holders of Quality Assurance Program Approvals and Government agencies

licensed by the NRC.

* * * * *

(c) A licensee who is required to pay an annual fee under this

section may qualify as a small entity. If a licensee qualifies as a

small entity and provides the Commission with the proper certification,

the licensee may pay reduced annual fees for FY 1994 as follows:

------------------------------------------------------------------------

Maximum

annual fee

per

licensed

category

------------------------------------------------------------------------

Small Businesses and Small not-for-profit Organizations

(Gross Annual Receipts):

$250,000 to $3.5 million................................. $1,800

Less than $250,000....................................... 400

Private Practice Physicians (Gross Annual Receipts):

$250,000 to $1.0 million................................. 1,800

Less than $250,000....................................... 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................. 1,800

------------------------------------------------------------------------

* * * * *

(4) For FY 1994, the maximum annual fee (base annual fee plus

surcharge) a small entity is required to pay is $1,800 for each

category applicable to the license(s).

(d) The FY 1994 annual fees for materials licensees and holders of

certificates, registrations or approvals subject to fees under this

section are as follows:

Schedule of Materials Annual Fees and Fees for Government Agencies

Licensed by NRC

[See footnotes at end of table]

------------------------------------------------------------------------

Annual

Category of materials licenses Fees\1\\2\\3\

------------------------------------------------------------------------

1. Special nuclear material:

A.(1) Licenses for possession and use of U-235 or

plutonium for fuel fabrication activities.

------------------------------------------------------------------------

High Enriched Fuel License No. Docket No.

Babcock and Wilcox....................................... SNM-42 70-27 $3,176,000

Nuclear Fuel Services.................................... SNM-124 70-143 3,176,000

Low Enriched Fuel:

B&W Fuel Company..................................... SNM-1168 70-1201 1,429,000

Combustion Engineering (Hematite).................... SNM-33 70-36 1,429,000

General Electric Company............................. SNM-1097 70-1113 1,429,000

Siemens Nuclear Power................................ SNM-1227 70-1257 1,429,000

Westinghouse Electric Company........................ SNM-1107 70-1151 1,429,000

General Atomic....................................... SNM-696 70-734 1,429,000

Surcharge.................................... 55,770

A. (2) All other special nuclear materials

licenses not included in 1.A.(1) above 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............... 254,000

Surcharge.................................... 55,770

B. Licenses for receipt and storage of spent fuel

at an independent spent fuel storage

installation (ISFSI)............................ 363,500

Surcharge.................................... 1,670

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.......... 1,800

Surcharge.................................... 170

D. All other special nuclear material licenses,

except licenses authorizing special nuclear

material in unsealed form in combination that

would constitute a critical quantity, as defined

in Sec. 150.11 of this chapter, for which the

licensee shall pay the same fees as those for

Category 1.A.(2)................................ 2,200

Surcharge.................................... 1,670

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......................... 1,114,000

Surcharge.................................... 55,770

(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\.................... 94,300

Class II facilities\4\................... 41,200

Other facilities......................... 36,200

Surcharge............................ 170

B. Licenses which authorize only the possession,

use and/or installation of source material for

shielding....................................... 800

Surcharge.................................... 170

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

Surcharge.................................... 1,670

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............ 19,700

Surcharge.................................... 1,670

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......................... 6,000

Surcharge.................................... 1,670

C. Licenses issued pursuant to Secs. 32.72,

32.73, and/or 32.74 of this chapter authorizing

the processing or manufacturing and distribution

or redistribution of radiopharmaceuticals,

generators, reagent kits and/or sources and

devices containing byproduct material. 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.................... 12,000

Surcharge.................................... 1,670

D. Licenses and approvals issued pursuant to

Secs. 32.72, 32.73, and/or 32.74 of this chapter

authorizing distribution or redistribution of

radiopharmaceuticals, generators, reagent kits

and/or sources or devices not involving

processing of byproduct material. 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.................................... 6,000

Surcharge.................................... 170

E. Licenses for possession and use of byproduct

material in sealed sources for irradiation of

materials in which the source is not removed

from its shield (self-shielded units)........... 3,500

Surcharge.................................... 170

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........................................ 4,500

Surcharge.................................... 170

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........................................ 24,400

Surcharge.................................... 170

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.................................... 6,800

Surcharge.................................... 170

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......................................... 12,500

Surcharge.................................... 170

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.......... 6,600

Surcharge.................................... 170

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.................................... 6,100

Surcharge.................................... 170

L. Licenses of broad scope for possession and use

of byproduct material issued pursuant to part 30

and 33 of this chapter for research and

development that do not authorize commercial

distribution.................................... 14,700

Surcharge.................................... 1,670

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

Surcharge.................................... 1,670

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, 4C, and 4D.. 6,000

Surcharge.................................... 1,670

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.................. 19,000

Surcharge.................................... 170

P. All other specific byproduct material

licenses, except those in Categories 4A through

9D.............................................. 2,300

Surcharge.................................... 170

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........................................ 130,200\5\

Surcharge.................................... 1,670

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 16,400

Surcharge.................................... 1,670

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 7,500

Surcharge.................................... 1,670

D. Licenses specifically authorizing the receipt,

from other persons, of byproduct material as

defined in Section 11.e.(2) of the Atomic Energy

Act for possession and disposal except those

licenses subject to the fees in Category 2.A.(2) 8,700

Surcharge....................................

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