Revision of Fee Schedules; 100 Percent Fee Recovery, FY 1998

SUMMARY: The Nuclear Regulatory Commission (NRC) is amending the

licensing, inspection, and annual fees charged to its applicants and

licensees. The amendments are necessary to implement the Omnibus Budget

Reconciliation Act of 1990 (OBRA-90), which mandates that the NRC

recover approximately 100 percent of its budget authority in Fiscal

Year (FY) 1998, less amounts appropriated from the Nuclear Waste Fund

(NWF). The amount to be recovered for FY 1998 is approximately $454.8

million. The NRC is also providing additional payment methods for civil

penalties and indemnity fees, as well as annual and licensing fees.

EFFECTIVE DATE: August 10, 1998.

ADDRESSES: Copies of comments received and the agency workpapers that

support these final changes to 10 CFR Parts 170 and 171 may be examined

at the NRC Public Document Room, 2120 L Street NW (Lower Level),

Washington, DC 20555-0001.

FOR FURTHER INFORMATION CONTACT: Glenda Jackson, Office of the Chief

Financial Officer, U.S. Nuclear Regulatory Commission, Washington, DC

20555-0001, Telephone 301-415-6057.

SUPPLEMENTARY INFORMATION:

I. Background.

II. Responses to Comments.

III. Final Action.

IV. Section-by-Section Analysis.

V. Environmental Impact: Categorical Exclusion.

VI. Paperwork Reduction Act Statement.

VII. Regulatory Analysis.

VIII. Regulatory Flexibility Analysis.

IX. Backfit Analysis.

X. Small Business Regulatory Enforcement Fairness Act.

I. Background

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

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

approximately 100 percent of its budget authority, less the amount

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

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

extend the NRC's 100 percent fee recovery requirement through FY 1998.

The NRC assesses two types of fees to recover its budget authority.

First, license and inspection fees, established at 10 CFR Part 170

under the authority of the Independent Offices Appropriation Act

(IOAA), 31 U.S.C. 9701, recover the NRC's costs of providing

individually identifiable services to specific applicants and

licensees. Examples of the services provided by the NRC for which these

fees are assessed are the review of applications for the issuance of

new licenses, approvals or renewals, and amendments to licenses or

approvals. Second, annual fees, established in 10 CFR Part 171 under

the authority of OBRA-90, recover generic and other regulatory costs

not recovered through 10 CFR Part 170 fees.

On April 1, 1998 (63 FR 16046), the NRC published a proposed rule

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

the NRC to recover approximately 100 percent of its budget authority

for FY 1998, less the appropriation received from the Nuclear Waste

Fund and the General Fund, and to provide additional payment methods

for civil penalties and indemnity fees. These changes were highlighted

in the proposed rule (63 FR 16046; April 1, 1998) and have been adopted

in this final rule for FY 1998. The major changes are summarized as

follows:

1. Adjust all 10 CFR 171 annual fees by the percent change in the

NRC budget authority since its FY 1997 appropriation. In this final

rule, FY 1998 annual fees have been adjusted downward by about 0.1

percent. This change is consistent with the NRC's intention stated in

the FY 1995 final rule. The NRC indicated that, beginning in FY 1996,

annual fees would be stabilized by adjusting the prior year annual fees

by the percent change (plus or minus) in the NRC budget authority

taking into consideration the estimated collections from 10 CFR Part

170 fees and the number of licensees paying fees;

2. Revise, by lowering, the two professional hourly rates in

Sec. 170.20 that are used to determine the 10 CFR Part 170 fees

assessed by the NRC. The rate for FY 1998 for the reactor program is

$124 per hour and the rate for the materials program is $121 per hour.

3. Adjust downward the current licensing and inspection fees in

Secs. 170.21 and 170.31 for applicants and licensees to reflect the

changes in the revised hourly rates.

4. Revise Sec. 170.12(g) to include full cost recovery for resident

inspectors and to recover costs incurred up to approximately 30 days

after issuance of an inspection report.

5. Implement a procedural change to assess fees under Secs. 170.21

and 170.31 for activities, such as application reviews and inspections,

performed during compensated overtime. The compensated overtime hours

will be billed at the normal hourly rate.

II. Responses to Comments

The NRC received and evaluated four comments on its proposed rule.

For evaluation purposes, comments similar in nature have been

grouped, as appropriate, and addressed as single issues in this final

rule.

The comments are as follows.

A. Relationship Between Costs and Annual Fees

1. Comment. Two commenters, the Nuclear Energy Institute (NEI) and

Florida Power and Light Company (FPL), indicated that the basis for the

increase in the annual fees was not explained in the proposed rule.

These commenters indicated that NRC has not followed the Congressional

directive in the Conference Report on the Omnibus Budget Reconciliation

Act of 1990 (OBRA-90) that the annual charges, ``to the maximum extent

practicable, reasonably reflects the cost of providing services to such

licensees or classes of licensees.'' NEI stated that the general

descriptions of the activities comprising the basis for the annual fee

do not provide sufficient information to enable the public to comment

meaningfully on this aspect of the proposed rule, and went on to argue

that the NRC's obligation to examine its activities and their

associated costs annually pursuant to OBRA-90 cannot be satisfied by

merely adjusting the FY 1995 baseline determinations. Both of these

commenters indicated that the NRC should not proceed with the rule as

proposed and should provide a clear explanation of the relationship

between services provided and the proposed annual fee. FPL stated that

the description and level of justification should be no less than that

employed prior to 1995. NEI also stated that the NRC did not provide

any information to enable an evaluation of the basis for the judgment

that neither of the two tests for reexamining the basis for the annual

fees (e.g., a substantial change in the NRC's budget or in the

magnitude of a specific budget allocation to a class of licensees) had

been met.

Response. The NRC believes that it has provided sufficient

information to allow public evaluation and comment on the proposed

fees. The proposed fee rule contained specific explanations for

[[Page 31841]]

the changes to the annual fees, including tables showing the

calculation of the percentage change to the annual fees. In addition,

as stated in the proposed rule, the workpapers supporting the proposed

fee rule changes are available for public examination in the NRC Public

Document Room at 2120 L Street, NW (Lower Level), Washington, DC 20555.

Moreover, a detailed explanation of NRC's budget is set forth in NUREG-

1100, Volume 13, Budget Estimates Fiscal Year 1998 published in

February 1997 and is available to commenters. Finally, NRC staff during

the comment period responded to telephone requests for additional

explanation of the proposed rule.

Contrary to the commenters' inference, OBRA-90 does not require NRC

to rebaseline annual fees every year. The statute states that ``[t]o

the maximum extent practicable, the charges shall have a reasonable

relationship to the cost of providing regulatory services and may be

based on the allocation of the Commission's resources among licensees

or classes of licensees.'' The Conference Report on the statute makes

clear that the Congress recognized that the allocation of fees would

diverge from the allocation of resources in the budget. The conferees

further ``recognize[d] that there are expenses that cannot be

attributed either to an individual licensee or a class of licensees.''

(House Conference Report 101-954, p. 962.) This language affords the

Commission some flexibility in shaping its annual fee schedules.

In promulgating the FY 1995 fee rule, the NRC solicited comments on

a proposal to establish the annual fees for FY 1996 through FY 1998,

and FY 1999 if OBRA-90 is extended, based on the percentage decrease or

increase in the NRC's total budget, unless there was a substantial

change in that total budget or in the magnitude of a specific budget

allocation to a class of licensees. The NRC indicated that the annual

fees would also be adjusted to compensate for changes in Part 170 fee

collections and the number of licensees paying annual fees. The NRC

concluded that this approach is ``practicable'' and fully consistent

with its statutory mandate. Most commenters in FY 1995 agreed that this

method represented a simplification and streamlining of the fee-setting

procedures and was necessary to eliminate the large fluctuations in

annual fees that had occurred in the past and to provide for greater

predictability of fees. At that time, neither NEI nor any reactor

licensee objected to the proposed method. Based on the comments

received supporting the methodology, the NRC adopted the change, and

the revised method was used to determine the FY 1996 and FY 1997 annual

fees. The revised method was not challenged by commenters when it

produced a reduction of about 6 percent in FY 1996, and at the time NEI

stated that it was ``pleased that the annual fees for licensees are

being lowered by slightly over 6%'' (letter to John C. Hoyle, Secretary

of the Commission, from William H. Rasin, NEI, dated February 28,

1996). The Commission reaffirmed the legality of its approach in its

denial of an NEI petition seeking reconsideration of the final fee rule

for fiscal year 1997. See, October 1, 1997, letter from John C. Hoyle,

Secretary of the Commission, to Robert W. Bishop, Vice President and

General Counsel, Nuclear Energy Institute.

With regard to the question of whether the criteria established by

NRC for rebaselining have been met, the NRC specifically stated in the

proposed rule that there has not been a substantial change in the NRC

budget or the magnitude of a specific budget allocation to a class of

licensees. The FY 1998 budgeted amount to be recovered through NRC's

fees is $7.5 million less than in FY 1997. This is clearly not a

substantial change. Similarly, as reflected in the NRC's annual

budgets, there have not been major changes in the allocation of

budgeted resources to specific classes of licensees.

This final rule adopts the methodology to streamline and stabilize

FY 1998 annual fees by adjusting these fees by the percentage change in

NRC's total budget authority. The FY 1997 fees have been used as base

annual fees, and these fees have been adjusted for FY 1998 based on the

percentage change in NRC's budget authority, taking into consideration

the total number of licensees paying fees and estimated collections

from 10 CFR Part 170 fees. The amounts of the annual fees for some of

the classes of licensees have decreased since the publication of the

proposed rule. The proposed FY 1998 annual fees were developed using an

estimated number of days for proration of the FY 1998 annual fees for

Zion Stations Units 1 and 2. As a result of this estimation, the FY

1998 proposed annual fees were based on the equivalent of 2.5 fewer

power reactors paying annual fees in FY 1998 than in FY 1997, and the

proposed FY 1998 annual fees increased by 0.1 percent compared to the

actual (prior to rounding) FY 1997 annual fees. The final FY 1998

annual fees have been developed based on the certification dates for

permanent cessation of operations and permanent removal of fuel from

the Zion 1 and 2 reactor vessels. The certifications were filed later

in the fiscal year than anticipated when the proposed rule was

developed, resulting in the equivalent of 2.3 fewer power reactors

paying annual fees in FY 1998 than in FY 1997. The result is that the

final FY 1998 annual fees have decreased by about 0.1 percent compared

to the FY 1997 actual (prior to rounding) annual fees.

2. Comment. FPL stated that the proposed rule does not reflect any

Commission consideration of the specific services driving the cost

increase. FPL also questioned why the reactor annual fee was not

reduced in light of the premature shutdown of four nuclear units in FY

1997. Another commenter, Tennessee Valley Authority (TVA), stated that,

with the shift from operating reactor oversight to decommissioning

activities, strong action to reduce overhead and central staff appears

appropriate. TVA also stated that the 10 percent fewer power licensees

with much better average performance than in the past should yield

reductions in total NRC fees.

Response. Although the proposed reactor annual fee increased

slightly, by 0.1 percent, from FY 1997, the total budget to be

recovered through fees decreased by $7.5 million from FY 1997. In fact,

the proposed rule reflected a decrease in the total annual fees for the

power reactor class of licensees of approximately $7.4 million compared

to FY 1997. The slight increase in the proposed annual fee to be

assessed to each reactor licensee was not the result of increased costs

or a lack of consideration of the specific services. Rather, the

proposed change was primarily the result of the equivalent of 2.5 fewer

reactors paying the annual fee compared to FY 1997. As explained in

response to the above comment, this final rule reflects the equivalent

of 2.3 fewer reactors paying the FY 1998 fees, and as a result the

final FY 1998 annual fees decreased by 0.1 percent compared to the FY

1997 exact (prior to rounding) annual fees.

B. Fees for Services That do not Benefit Licensees

1. Comment. NEI, FPL, and TVA continued to urge NRC to take action

to eliminate fees for services that do not benefit the licensees paying

the annual fees. FPL and NEI concluded that recovering the costs of

these activities from reactor licensees violates the provision of OBRA-

90 that the charges shall have a reasonable relationship to the cost of

providing regulatory services. FPL argued that assessing these non-

[[Page 31842]]

reactor costs to reactor licensees exceeds the Congressional delegation

of authority and is arbitrary and capricious, and therefore violates

the Equal Protection requirements of the Due Process Clause of the

Fifth Amendment to the United States Constitution. NEI suggested that

the NRC could conclude that recovering 88 percent of its budget

authority by eliminating these costs from fee recovery is consistent

with the requirement of OBRA-90 to recover ``approximately'' 100

percent of its budget authority from fees, or NRC could seek

legislation to resolve the issue, as it has committed to do in the

past.

Response. As NRC has stated on many occasions, it shares

commenters' concerns that licensees are paying for activities that do

not directly benefit them. However, the NRC disagrees with the

assertion that recovering these costs from licensees violates statutory

requirements. In fact, the Congressional guidelines provided in the

Conference Report to the 100 percent fee recovery legislation

specifically provide for the assessment of fees to licensees to recover

agency costs that may not provide direct benefits to them. The

conferees recognized that ``Congress must indicate clearly its

intention to delegate to the Executive the discretionary authority to

recover administrative costs not inuring directly to the benefit of

regulated parties'' and that Congress must provide guidelines for

making these assessments. The conferees recognized that certain

expenses cannot be attributed either to an individual or to classes of

NRC licensees. The conferees intended that the NRC fairly and equitably

recover these expenses from its licensees through the annual charge

even though these expenses cannot be attributed to individual licensees

or classes of licensees. These expenses may be recovered from the

licensees as the Commission, in its discretion, determines can fairly,

equitably, and practicably contribute to their payment. (136 Cong. Rec.

at H12692-3.) Based on these explicit guidelines, the NRC concludes

that the assessment of fees to recover these costs from licensees is

neither arbitrary nor capricious, and does not violate any statute.

Nevertheless, the NRC continues to take action to minimize the

impacts of recovering the costs of these activities from licensees.

Although legislation recommended in NRC's February 23, 1994, Report to

Congress to address these concerns has not been enacted, the NRC has

taken several steps to mitigate the perceived inequities within the

constraints of existing law. For example, the Commission successfully

obtained appropriation legislation that removed from the fee base

certain costs incurred as a result of regulatory reviews and other

assistance provided to the Department of Energy and other Federal

agencies. In addition, when authorized by law, the NRC has made a

concerted effort to obtain reimbursements for services provided to

other Federal agencies. The NRC has not submitted proposed legislation

that would take out of the fee base the costs of services that do not

provide direct benefits to licensees because the Office of Management

and Budget has advised that such legislation would be inconsistent with

the President's budget. The NRC notes that the Senate Committee on

Environment and Public Works recently ordered to be reported

legislation which would exclude up to $30 million each year from the

NRC's fee base.

The NRC disagrees that eliminating these costs from fee recovery,

thereby recovering 88 percent of the budget, would meet the OBRA-90

requirement that NRC recover approximately 100 percent of its budget

authority through fees. As the NRC stated in the statement of

considerations accompanying the FY 1991 final rule (56 FR 31474), it

interprets the words ``approximately 100 percent'' as meaning that the

Commission should promulgate a rule that identifies and allocates as

close to 100 percent of its budget authority to the various classes of

NRC licensees as is practical. The Commission concluded that, based on

the Conference Report guidelines, it was Congress' intent that the

Commission allocate 100 percent of its budget authority for fee

assessment, and that the term ``approximately 100%'' refers only to the

inherent uncertainties in estimating and collecting the fees.

Furthermore, in NRC's annual appropriations acts, the Congress presumes

that the NRC fee collections will approximate 100 percent, not 88

percent, of its budget authority. See, e.g., Title IV of the Energy and

Water Development Appropriations Act, 1998, P.L. 105-62.

The Conference Report guidance also provides that the costs be

``recovered from such licensees as the Commission in its discretion

determines can fairly, equitably and practicably contribute to their

payment.'' The FY 1995 fee rule, which established the baselines used

in subsequent annual fee rules, including the current one, allocated

the cost of the activities that raised fairness and equity concerns to

all licensees based on the budgeted dollars for each class of licensee.

This allocation results in the entire population of NRC licensees

paying for these costs (see 60 FR 14670, 14674). This continues to be a

sensible approach.

C. Part 170 Fees

1. Comment. NEI and FPL indicated that NRC should increase the

percentage of costs recovered through Part 170 fees. FPL claimed that

there is no exemption authority from the provision that ``any person

who receives a service or thing of value from the Commission shall pay

fees to cover the Commission's costs in providing any such service or

thing of value.'' NEI stated that ``.....79 percent of the fees

proposed to be collected from NRC licensees are for non-discrete

services. This approach makes it too easy to shift personnel from

providing discrete services to working on generic issues, thereby

increasing overhead costs as actual services provided to individual

licensees decline, rather than make the hard decisions of what

activities are really necessary.'' FPL concluded that NRC has not

adequately allocated costs to the beneficiaries of the services. NEI

and TVA supported NRC's proposed full-cost provision for resident

inspectors; however, TVA indicated that time for resident inspectors

assigned to special inspections at other plants should be charged to

those specific inspections. TVA supported the reduced hourly rate and

NRC's proposed long-term policy to progress bill for all inspections.

Response. The NRC previously responded to commenters' claim that

there is no exemption authority from the provision that those receiving

a service shall pay fees to cover the Commission's costs of providing

the service (62 FR 29195). As the NRC pointed out in that response, the

NRC is barred by law from charging most Federal agencies 10 CFR Part

170 fees, and exemptions from fees granted by the NRC are well founded

in law and are granted only after full and public consideration of the

relevant policy questions.

The proposed rule included several actions that would lead to

increased cost recovery under Part 170 for services provided to

identifiable beneficiaries. The NRC is adopting the proposed change to

recover full cost for resident inspectors under 10 CFR Part 170;

however, as a result of the comments received the NRC has clarified in

10 CFR 170.12(g) that time spent by a resident inspector in support of

activities at other sites will not be billed to the site to which the

resident inspector is assigned. The NRC is also adopting the proposed

change to recover costs incurred within 30 days after the inspection

report is issued, and the

[[Page 31843]]

procedural change to assess Part 170 fees for licensing and inspection

activities performed during compensated overtime. Because this final

rule will not be effective before the fourth quarter of FY 1998, the

increased Part 170 collections for these activities do not affect the

FY 1998 fee calculations, but will be reflected in the FY 1999 fee

rule. As indicated in the proposed rule, the NRC will progress bill for

inspections under certain circumstances. Based on the comments

received, the necessary changes to 10 CFR 170 will be made in future

rulemaking once the system is available to accommodate progress billing

for all inspections.

The NRC has established in this FY 1998 final rule a professional

hourly rate of $124 for the reactor program and $121 per hour for the

materials program. These revised rates, which are a reduction from the

FY 1997 rates, will be used to determine the 10 CFR Part 170 fees.

The NRC has already taken steps to evaluate other areas for

potential cost recovery under Part 170, with the intention of including

the recommended activities in the FY 1999 proposed fee rule for public

comment.

D. Annual Fees for Certificates of Compliance Issued to the United

States Enrichment Corporation

1. Comment. The United States Enrichment Corporation (USEC)

requested that a single annual fee be assessed for the two Gaseous

Diffusion Plants (GPDs) operated by USEC and that the fee be reduced to

a value commensurate with the proposed fee for the low-enriched uranium

fuel fabrication facilities. USEC submitted detailed information to

support its request. USEC stated that its comments not only address its

belief that the proposed rule is not fair and equitable, but also serve

as a request for reconsideration of the NRC's March 23, 1998, denial of

USEC's request for an exemption from the annual fees.

Response. NRC rejected similar arguments from USEC in the FY 1997

final rule (62 FR 29197), and in its March 23, 1998, denial of USEC's

annual fee exemption request. The NRC continues to believe for the

reasons stated in these documents that the USEC must pay a full annual

fee for each of its enrichment facilities and that its facilities have

been placed in the appropriate fee category. Insofar as USEC's comment

letter requested a reconsideration of NRC's March 23, 1998, denial of

its annual fee exemption request, the NRC will respond to that request

separately.

III. Final Action

The NRC is amending its licensing, inspection, and annual fees to

recover approximately 100 percent of its FY 1998 budget authority,

including the budget authority for its Office of the Inspector General,

less the appropriations received from the NWF and the General Fund. For

FY 1998, the NRC's budget authority is $472.8 million, of which $15.0

million has been appropriated from the NWF. In addition, $3.0 million

has been appropriated from the General Fund for activities related to

commercial vitrification of waste stored at the Department of Energy

Hanford, Washington, site and for the pilot program for the external

regulation of the Department of Energy. The FY 1998 appropriation

language states that the $3.0 million appropriated for regulatory

reviews and other activities pertaining to waste stored at the Hanford,

Washington, site and activities associated with the pilot program for

external regulation of the Department of Energy shall be excluded from

license fee revenues notwithstanding 42 U.S.C. 2214. Therefore, NRC is

required to collect approximately $454.8 million in FY 1998 through 10

CFR Part 170 licensing and inspection fees and 10 CFR Part 171 annual

fees.

The total amount to be recovered in fees for FY 1998 is $7.5

million less than the amount estimated for recovery for FY 1997. The

NRC estimates that approximately $94.6 million will be recovered in FY

1998 from fees assessed under 10 CFR Part 170 and other receipts,

compared to $95.2 million in FY 1997. The remaining $360.2 million will

be recovered in FY 1998 through the 10 CFR Part 171 annual fees,

compared to $367.1 for FY 1997.

In addition to the decrease in the amount to be recovered through

annual fees and the slight reduction in the estimated amount to be

recovered in 10 CFR Part 170 fees, the number of licensees paying

annual fees in FY 1998 has decreased compared to FY 1997. For example,

Commonwealth Edison notified the NRC that the Zion Station Units 1 and

2 ceased operations on February 13, 1998. On March 11, 1998, the NRC

docketed Commonwealth Edison's certification that all fuel has been

removed from the Zion Station Units 1 and 2 reactor vessels. In

addition, both the Haddam Neck Plant and the Maine Yankee Plant ceased

operations during FY 1997 and therefore are not subject to the FY 1998

annual fees. This is equivalent to a reduction of 2.3 power reactors

subject to the FY 1998 annual fees compared to FY 1997. The Big Rock

Point Plant, a small, older reactor historically granted a partial

exemption from the annual fee, also ceased operations in FY 1997 and is

no longer subject to annual fees.

The proposed FY 1998 annual fees were developed using an estimated

number of days for proration of the FY 1998 annual fees for Zion

Station Units 1 and 2. As a result of this estimation, the FY 1998

proposed annual fees were based on the equivalent of 2.5 fewer power

reactors paying annual fees in FY 1998 than in FY 1997, and the

proposed FY 1998 annual fees increased by 0.1 percent compared to the

actual (prior to rounding) FY 1997 annual fees. The final FY 1998

annual fees have been developed based on the Zion 1 and 2

certifications of permanent cessation of operations and permanent

removal of fuel from the reactor vessels, which were filed later in the

fiscal year than anticipated when the proposed rule was developed,

resulting in the equivalent of 2.3 fewer power reactors paying annual

fees in FY 1998 than in FY 1997. As a result, the final FY 1998 annual

fees decreased by about 0.1 percent compared to the FY 1997 actual

(prior to rounding) annual fees.

Because this is a slight decrease, the final (rounded) FY 1998

annual fees for many fee categories are the same as the final (rounded)

FY 1997 annual fees. The change to the annual fees is described in more

detail in Section B. The following examples illustrate the changes in

annual fees:

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

FY 1997 annual FY 1998 annual

fee fee

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

Class of Licensees:

Power Reactors...................... $2,978,000 $2,976,000

Nonpower Reactors................... 57,300 57,300

High Enriched Uranium Fuel Facility. 2,606,000 2,604,000

Low Enriched Uranium Fuel Facility.. 1,279,000 1,278,000

UF6 Conversion Facility............. 648,000 648,000

[[Page 31844]]

Uranium Mills....................... 61,800 61,700

Typical Materials Licenses:

Radiographers....................... 14,100 14,000

Well Loggers........................ 8,200 8,200

Gauge Users......................... 1,700 1,700

Broad Scope Medical................. 23,500 23,500

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

Because the final FY 1998 fee rule will be a ``major'' final action

as defined by the Small Business Regulatory Enforcement Fairness Act of

1996, the NRC's fees for FY 1998 will become effective 60 days after

publication of the final rule in the Federal Register. The NRC will

send an invoice for the amount of the annual fee upon publication of

the FY 1998 final rule to reactors and major fuel cycle facilities. For

these licensees, payment will be due on the effective date of the FY

1998 rule. Those materials licensees whose license anniversary date

during FY 1998 falls before the effective date of the final FY 1998

final rule will be billed during the anniversary month of the license

and continue to pay annual fees at the FY 1997 rate in FY 1998. Those

materials licensees whose license anniversary date falls on or after

the effective date of the FY 1998 final rule will be billed at the FY

1998 revised rates during the anniversary month of the license and

payment will be due on the date of the invoice.

As announced in the proposed rule, the NRC will no longer mail the

final rule to all licensees. In addition to publication in the Federal

Register, the final rule is available on the Internet at http://

ruleforum.llnl.gov/.

Copies of the final rule will be mailed upon request. To obtain a

copy of the final rule, contact the License Fee and Accounts Receivable

Branch, Division of Accounting and Finance, Office of the Chief

Financial Officer, at 301-415-7554. As a matter of courtesy, the NRC

plans to continue in future years to send the proposed rule to all

licensees.

The NRC also announced in the proposed rule that it plans to

reexamine its current policy of exempting from annual fees those

licensees whose facilities are being decommissioned, or who have

possession only licenses. The proposed rule stated that this review

would also reexamine NRC's annual fee policy for reactors' storage of

spent fuel. Any changes to the current fee policies resulting from

these reexaminations will be included in the FY 1999 fee rulemaking.

One purpose of the study is to assure consistent fee treatment for both

wet storage (i.e., spent fuel pool) and dry storage (i.e., independent

spent fuel storage installations, or ISFSIs) of spent fuel. The

Commission has previously determined that both storage options are

considered safe and acceptable forms of storage for spent fuel. Under

current fee regulations, Part 50 licensees whose facilities are being

decommissioned and who store spent fuel in a spent fuel pool are not

assessed an annual fee, but licensees who store spent fuel in an ISFSI

under Part 72 are assessed an annual fee. The NRC will review this

policy as part of the overall study of the issues related to annual

fees for licensees of facilities being decommissioned.

The NRC is amending 10 CFR Parts 170 and 171 as discussed in

Sections A. and B. below

A. Amendments to 10 CFR Part 170: Fees for Facilities, Materials,

Import and Export Licenses, and Other Regulatory Services

Four amendments have been made to 10 CFR 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. The amendments also comply with the

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

assessed under the Independent Offices Appropriation Act (IOAA) recover

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

applicant or licensee receives.

First, the NRC is amending Sec. 170.12(g) to include the following

for cost recovery:

(1) Full-cost recovery for resident inspectors.

Because the assignment of resident inspectors to a site is an

identifiable service to a specific licensee, the NRC will bill the

specific licensee for all of the resident inspectors' time, excluding

leave and time spent by a resident inspector in support of activities

at another site. This change is applicable to all classes of licensees

having resident inspectors.

(2) Costs expended within approximately 30 days after the issuance

of an inspection report.

Part 170 fees will be assessed for activities that occur within

approximately 30 days after the inspection report is issued, such as

follow-up on the inspection findings. These activities are identifiable

services for specific licensees. This change will result in recovery

through Part 170 fees of approximately 80 percent of the accumulated

costs expended after the inspection report is sent, and will continue

to provide applicants and licensees with a definitive point at which

billing will cease.

Second, the NRC is revising Sec. 170.12(h) to include credit cards

as an additional method of payment, and to provide additional

information on electronic payments. Credit card payments will be

accepted up to the limit established by the credit card bank.

Electronic payments may be made by Fedwire (a funds transfer system

operated by the Federal Reserve System) or by Automated Clearing House

(ACH). ACH is a nationwide processing and delivery facility that

provides for the distribution and settlement of electronic financial

transactions. Electronic payment will not only expedite the payment

process, but will also save applicants and licensees considerable time

and money over a paper-based payment system.

Third, the two professional hourly rates established in FY 1997 in

Sec. 170.20 are revised based on the FY 1998 budget. These rates are

based on the FY 1998 direct FTEs and the FY 1998 budget excluding

direct program support (contractual services costs) and the

appropriation from the NWF or the General Fund. These rates are used to

determine the Part 170 fees. The NRC has established a rate of $124 per

hour ($219,901 per direct FTE) for the reactor program. This rate is

applicable to all activities for which fees are based on full cost

under Sec. 170.21 of the fee regulations. A second rate of $121 per

hour ($214,185 per direct FTE) is established for the nuclear materials

and nuclear waste program. This rate is applicable to all materials

activities for which fees are based on full cost under Sec. 170.31 of

the fee regulations. In the FY 1997 final fee rule, these rates were

$131 and $125, respectively. The decrease in the hourly rates is

primarily due to a change in application of the

[[Page 31845]]

types of costs included in the hourly rates. Previously, the hourly

rates were determined based on the premise that surcharge costs should

be shared by those paying Part 170 fees for services as well as those

paying Part 171 annual fees. The revised hourly rates have been

determined based on the principle that the surcharge costs are more

appropriately included only in the Part 171 annual fee.

In addition, Section Chiefs are included as overhead in the

calculation of the FY 1998 hourly rates, and any specific Section Chief

effort expended for reviews and inspections will not be billed to the

applicant or licensee. Previously, the Section Chiefs' time for

specific licensing and inspection activities were directly billed under

Part 170 to the applicant or licensee. This change is consistent with

the current budget structure which includes Section Chiefs as overhead.

Fourth, the NRC has adjusted the current Part 170 licensing fees in

Secs. 170.21 and 170.31 to reflect the revised hourly rates.

In addition, although not a specific change to Part 170, the NRC

will assess Part 170 fees for compensated overtime hours expended for

activities covered by Part 170, such as reviews of applications,

inspections, Part 55 exams, and special projects. The compensated

overtime hours will be billed at the normal hourly rate.

The NRC will also bill for accumulated inspection costs prior to

issuance of the inspection report under certain circumstances. NRC

plans to progress bill for inspections in selected cases where it is

determined that such billing would be in the best interest of the

agency and the licensee. If it is determined that the accumulated costs

warrant an exception to the billing method currently provided in 10 CFR

170.12(g), NRC will coordinate with the licensee to establish a

mutually agreeable billing schedule and will issue an invoice for

inspection costs that have accumulated.

The NRC is developing a system that will accommodate routine

billing for accumulated inspection costs at a specified interval. Once

that system is available, the NRC intends to progress bill for all

inspections. The staff sought early comment on the long-term policy in

the FY 1998 proposed rule, and received one comment supporting the

change. The necessary revision to 10 CFR 170 will be made in future

rulemaking when the system is available to accomplish this.

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

Four amendments have been made to 10 CFR Part 171.

First, the NRC is amending Sec. 171.13 to delete specific fiscal

year references.

Second, the NRC is amending Secs. 171.15 and 171.16 to revise the

annual fees for FY 1998 to recover approximately 100 percent of the FY

1998 budget authority, less fees collected under 10 CFR Part 170 and

funds appropriated from the NWF and the General Fund. In the FY 1995

final rule, the NRC stated that it would stabilize annual fees as

follows. Beginning in FY 1996, the NRC would adjust the annual fees

only by the percentage change (plus or minus) in NRC's total budget

authority unless there was a substantial change in the total NRC budget

authority or the magnitude of the budget allocated to a specific class

of licensees. If either case occurred, the annual fee base would be

recalculated as discussed in the FY 1995 final rule (60 FR 32225; June

20, 1995). In the FY 1995 rule, the NRC also indicated that the

percentage change would be adjusted based on changes in 10 CFR Part 170

fees and other adjustments as well as on the number of licensees paying

the fees.

In the FY 1996 final rule, the NRC stabilized the annual fees by

establishing the annual fees for all licensees at a level of 6.5

percent below the FY 1995 annual fees. For FY 1997, the NRC followed

the same method as used in FY 1996. Because the amount to be recovered

through fees for FY 1997 was identical to the amount to be recovered in

FY 1996, establishing new baseline fees was not warranted for FY 1997.

Based on a change in the distribution between Parts 170 and 171 fees, a

reduction in the amount of the budget recovered from 10 CFR Part 170

fees, a reduction in other offsetting adjustments, and a reduction in

the number of licensees paying annual fees, the FY 1997 annual fees for

all licensees increased 8.4 percent compared to the FY 1996 annual

fees. In addition, beginning in FY 1997, the NRC made an adjustment to

recognize that all fees billed in a fiscal year are not collected in

that year.

As indicated in the FY 1995 final rule, because there has not been

a substantial change in the NRC budget or in the magnitude of a

specific budget allocation to a class of licensees, the NRC followed

the same method used for FY 1996 and FY 1997 to establish the FY 1998

annual fees.

The FY 1998 amount to be recovered through fees is approximately

$454.8 million, which is $7.5 million less than in FY 1997. The

estimated amount to be recovered in 10 CFR Part 170 fees is $94.6

million, compared to $95.2 million for FY 1997. In addition, there are

the equivalent of 2.3 fewer power reactors subject to annual fees in FY

1998. There is also a reduction of approximately 200 transportation

quality assurance approvals as a result of the rulemaking in 1997 that

combined these approvals with the Part 34 radiography licenses.

The NRC is establishing the FY 1998 annual fees for all licensees

at about 0.1 percent below the FY 1997 actual (prior to rounding)

annual fees. Based on the small change, the rounded FY 1998 annual fee

for many fee categories is the same as the final (rounded) FY 1997

annual fee. Therefore, for many licensees, the annual fee for FY 1998

is the same as the FY 1997 annual fee. Table I shows the total budget

and amounts of fees for FY 1997 and FY 1998.

Table I.--Calculation of the Percentage Change to the FY 1997 Annual

Fees

[Dollars in millions]

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

FY 1997 FY 1998

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

Total Budget.................................. $476.8 $472.8

Less NWF.................................. -11.0 -15.0

Less General Fund (Hanford Tanks, Pilot

for Regulation of DOE)................... -3.5 -3.0

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

Total Fee Base................................ 462.3 454.8

Less Part 170 Fees........................ -95.2 -94.6

Less other receipts....................... ........... ...........

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

[[Page 31846]]

Part 171 Fee Collections Required............. 367.1 360.2

Part 171 Billing Adjustment: \1\

Small Entity Allowance.................... 5.0 5.8

Unpaid current FY invoices................ 3.0 3.9

Payments from prior year invoices......... -2.0 -3.2

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

Subtotal.............................. 6.0 6.5

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

Total Part 171 Billing................ 373.1 366.7

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

\1\ These adjustments are necessary to ensure that the ``billed'' amount

results in the required collections. Positive amounts indicate amounts

billed that will not be collected in FY 1998.

Third, Footnote 1 of 10 CFR 171.16(d) is amended to provide for a

waiver of annual fees for FY 1998 for those materials licensees, and

holders of certificates, registrations, and approvals, who either filed

for termination of their licenses or approvals or filed for possession

only/storage licenses before October 1, 1997, and permanently ceased

licensed activities entirely by September 30, 1997. All other licensees

and approval holders who held a license or approval on October 1, 1997,

are subject to FY 1998 annual fees. This change is being made in

recognition of the fact that since the final FY 1997 rule was published

in May 1997, some licensees have filed requests for termination of

their licenses or certificates with the NRC. Other licensees have

either telephoned or written to the NRC since the FY 1997 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 requests before the end of FY 1997 on September

30, 1997. Similar situations existed after the FY 1991-1996 rules were

published, and in those cases, the NRC provided an exemption from the

requirement that the annual fee is waived only when a license is

terminated before October 1 of each fiscal year.

Fourth, Sec. 171.19 is amended to update fiscal year references and

to credit the partial payments made by certain licensees in FY 1998

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

if necessary. Section 171.19(a) is also amended to provide credit cards

as an additional method of payment, and to provide additional

information on electronic payments. Credit card payments will be

accepted up to the limit established by the credit card bank.

Electronic payments may be made by Fedwire (a funds transfer system

operated by the Federal Reserve System) or by Automated Clearing House

(ACH). ACH is a nationwide processing and delivery facility that

provides for the distribution and settlement of electronic financial

transactions. Electronic payments will not only expedite the payment

process, but will also save applicants and licensees considerable time

and money over a paper-based payment system.

The NRC will send an invoice to reactors and major fuel cycle

facilities for the amount of the annual fee after publication of the FY

1998 final rule. For these licensees, payment will be due on the

effective date of FY 1998 rule. Those materials licensees whose license

anniversary date during the FY 1998 falls before the effective date of

the final FY 1998 rule will be billed during the anniversary month of

the license and continue to pay annual fees at the FY 1997 rate in FY

1998. Those materials licensees whose license anniversary date falls on

or after the effective date of the final FY 1998 rule will be billed,

at the FY 1998 revised rates, during the anniversary month of the

license and payment will be due on the date of the invoice.

The final changes to 10 CFR Part 171 are consistent with the NRC's

FY 1995 final rule indicating that, for the period FY 1996-1999, the

expectation is that annual fees would be adjusted by the percentage

change (plus or minus) to the NRC's budget authority adjusted for NRC

offsetting receipts and the number of licensees paying annual fees.

In addition to the amendments to 10 CFR Parts 170 and 171, the NRC

is amending 10 CFR Parts 2 and 140 to include the additional methods of

payments provided in 10 CFR Parts 170 and 171.

IV. Section-by-Section Analysis

The following analysis of those sections that will be amended by

this final rule provides additional explanatory information. All

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

Regulations.

Part 2

Section 2.205 Civil Penalties

Paragraph 2.205(I) is amended to provide additional methods of

payment, such as Automated Clearing House and credit cards, and to

clarify that payments are to be made in U.S. funds to the U.S. Nuclear

Regulatory Commission.

Part 140

Section 140.7 Fees

Paragraphs (a)(5) and (c) are amended to delete references to

payment instructions. A new paragraph (d) is added to provide payment

instructions, including clarification that payments are to be made in

U.S. funds to the U.S. Nuclear Regulatory Commission and to provide

additional methods of payments, such as Automated Clearing House and

credit cards.

Part 170

Section 170.12 Payment of Fees

Paragraph (g) is amended to indicate that costs incurred within

approximately 30 days after an inspection report is issued will be

billed to the specific licensee, and that for each site having a

resident inspector(s), the licensee will be billed for all of the

resident inspectors' time, excluding leave and time spent by a resident

inspector in support of activities at another site.

Paragraph (h) is revised to provide additional methods of payment

for fees assessed under 10 CFR Part 170 and to clarify that payment

should be made in U.S. funds.

Section 170.20 Average Cost per Professional Staff-Hour

This section is amended to establish two professional staff-hour

rates based on FY 1998 budgeted costs--one for the

[[Page 31847]]

reactor program and one for the nuclear material and nuclear waste

program. Accordingly, the NRC reactor direct staff-hour rate for FY

1998 for all activities whose fees are based on full cost under

Sec. 170.21 is $124 per hour, or $219,901 per direct FTE. The NRC

nuclear material and nuclear waste direct staff-hour rate for all

materials activities whose fees are based on full cost under

Sec. 170.31 is $121 per hour, or $214,185 per direct FTE. The rates are

based on the FY 1998 direct FTEs and NRC budgeted costs that are not

recovered through the appropriation from the NWF or the General Fund.

The NRC has continued the use of cost center concepts established in FY

1995 in allocating certain costs to the reactor and materials programs

in order to more closely align budgeted costs with specific classes of

licensees. The method used to determine the two professional hourly

rates is as follows:

1. Direct program FTE levels are identified for both the reactor

program and the nuclear material and waste program.

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

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

excluded from the calculation of the hourly rate because the costs for

direct contract support are charged directly through the various

categories of fees.

3. All other direct program costs (i.e., Salaries and Benefits,

Travel) represent ``in-house'' costs and are to be allocated by

dividing them uniformly by the total number of direct FTEs for the

program. In addition, salaries and benefits plus contracts for general

and administrative support are allocated to each program based on that

program's salaries and benefits. This method results in the following

costs which are included in the hourly rates.

Table II.--FY 1998 Budget Authority to be Included in Hourly Rates

[Dollars in millions]

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

Reactor Materials

program program

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

Direct Program Salaries & Benefits............ $103.9 $20.5

Overhead Salaries & Benefits, Program Travel

and Other Support............................ 55.3 14.8

Allocated Agency Management and Support....... 101.7 22.0

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

Subtotal.................................. 260.9 57.3

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

Total Budget Included in Hourly Rate...... 260.9 57.3

Program Direct FTEs........................... 1,186.4 267.3

Rate per Direct FTE........................... 219,901 214,185

Professional Hourly Rate (Rate per direct FTE

divided by 1,776 hours)...................... 124 121

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

Dividing the $260.9 million (rounded) budget for the reactor

program by the reactor program direct FTEs (1,186.4) results in a rate

for the reactor program of $219,901 per FTE for FY 1998. Dividing the

$57.3 million (rounded) budget for the nuclear materials and nuclear

waste program by the program direct FTEs (267.3) results in a rate of

$214,185 per FTE for FY 1998. The direct FTE hourly rate for the

reactor program is $124 per hour (rounded to the nearest whole dollar).

This rate is calculated by dividing the cost per direct FTE ($219,901)

by the number of productive hours in one year (1,776 hours) as

indicated in the revised OMB Circular A-76, ``Performance of Commercial

Activities.'' The direct FTE hourly rate for the materials program is

$121 per hour (rounded to the nearest whole dollar). This rate is

calculated by dividing the cost per direct FTE ($214,185) by the number

of productive hours in one year (1,776 hours).

The FY 1998 hourly rates are slightly lower than the FY 1997 rates.

The decrease in the hourly rates is primarily due to a change in

application of the types of costs included in the hourly rates.

Previously, the hourly rates were determined based on the premise that

surcharge costs should be shared by those paying Part 170 fees for

services as well as those paying Part 171 annual fees. The FY 1998

hourly rates have been determined based on the principle that the

surcharge costs are more appropriately included only in the Part 171

annual fee.

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 revising the licensing and inspection fees in this

section, which are based on full-cost recovery, to reflect FY 1998

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

licensing and inspection services to identifiable recipients. The fees

assessed for services provided under the schedule are based on the

professional hourly rate, as shown in Sec. 170.20, for the reactor

program and any direct program support (contractual services) costs

expended by the NRC. Any professional hours expended on or after the

effective date of the final rule will be assessed at the FY 1998 hourly

rate for the reactor program, as shown in Sec. 170.20. The fees in

Sec. 170.21 for the review of import and export licensing, facility

Category K, are adjusted for FY 1998 to reflect the revised hourly

rate.

Section 170.31 Schedule of Fees for Materials Licenses and Other

Regulatory Services, Including Inspections and Import and Export

Licenses

The licensing and inspection fees in this section, which are based

on full-cost recovery, are modified to recover the FY 1998 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 both the professional hourly rate as shown in

Sec. 170.20 for the materials program and any direct program support

(contractual services) costs expended by the NRC. Licensing fees based

on the average time to review an application (``flat'' fees) are

adjusted to reflect the decrease in the professional hourly rate from

$125 per hour in FY 1997 to $121 per hour in FY 1998.

The amounts of the materials licensing ``flat'' fees were rounded

so that the amounts would be de minimis and the resulting flat fee

would be convenient to the user. Fees under $1,000 are rounded to the

nearest $10. Fees that are greater than $1,000 but less than $100,000

are rounded to the nearest $100. Fees that are greater than $100,000

are rounded to the nearest $1,000.

[[Page 31848]]

The licensing ``flat'' fees are applicable to fee categories 1.C

and 1.D; 2.B and 2.C; 3.A through 3.P; 4.B through 9.D, 10.B, 15.A

through 15.E and 16. Applications filed on or after the effective date

of the final rule will be subject to the fees in this final rule.

For those licensing, inspection, and review fees that are based on

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

contractual services), the materials program hourly rate of $121, as

shown in Sec. 170.20, applies to those professional staff hours

expended on or after the effective date of the final rule.

Part 171

Section 171.13 Notice

The language in this section is revised to delete specific fiscal

year references.

Section 171.15 Annual Fee: Reactor Operating Licenses

The annual fees in this section are revised as described below.

Paragraphs (b), (c) (1), (c)(2), (e) and (f) are revised to comply

with the requirement of OBRA-90 that the NRC recover approximately 100

percent of its budget for FY 1998.

Paragraph (b) is revised in its entirety to establish the FY 1998

annual fee for operating power reactors and to change fiscal year

references from FY 1997 to FY 1998. The fees are established by

decreasing the FY 1997 annual fees (prior to rounding) by 0.1 percent.

In the FY 1995 final rule, the NRC stated it would stabilize annual

fees by adjusting the annual fees only by the percentage change (plus

or minus) in NRC's total budget authority and adjustments based on

changes in 10 CFR Part 170 fees as well as in the number of licensees

paying the fees. The activities comprising the base FY 1995 annual fee

and the FY 1995 additional charge (surcharge) are listed in paragraphs

(b) and (c) for convenience purposes.

The FY 1998 annual fee for each operating power reactor is

$2,976,000.

Paragraph (e) is revised to show the amount of the FY 1998 annual

fee for nonpower (test and research) reactors. The 1998 annual fee of

$57,300 is the same as the FY 1997 annual fee. The NRC will continue to

grant exemptions from the annual fee to Federally-owned and State-owned

research and test reactors that meet the exemption criteria specified

in Sec. 171.11(a)(2).

Paragraph (f) is revised to delete specific fiscal year date

references.

Section 171.16 Annual Fees: Materials Licensees, Holders of

Certificates of Compliance, Holders of Sealed Source and Device

Registrations, Holders of Quality Assurance Program Approvals, and

Government Agencies Licensed by the NRC

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

can qualify as small entities under NRC size standards. 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 by completing

and signing NRC Form 526 that it is a small entity. The NRC will

continue to assess two fees for licensees that qualify as small

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

gross annual receipts of $350,000 to $5 million pay a maximum 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

$350,000 and small governmental jurisdictions with a population of less

than 20,000. No change in the amount of the small entity fees is being

made because the small entity fees are not based on budgeted costs but

are established at a level to reduce the impact of fees on small

entities. The small entity fees are shown in the final rule for

convenience.

Section 171.16(d) is revised to establish the FY 1998 annual fees

for materials licensees, including Government agencies, licensed by the

NRC. The annual fees were determined by decreasing the FY 1997 annual

fees (prior to rounding) by about 0.1 percent. After rounding, many of

the FY 1998 annual fees for materials licensees are the same as the FY

1997 annual fees.

The amount or range of the FY 1998 annual fees for materials

licenses is summarized as follows.

Materials Licenses Annual Fee Ranges

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

Category of license Annual fees

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

Part 70--High enriched fuel facility.. $2,604,000

Part 70--Low enriched fuel facility... 1,278,000

Part 40--UF6 conversion facility...... 648,000

Part 40--Uranium recovery facilities.. 22,300 to 61,700

Part 30--Byproduct Material Licenses.. 490 to $23,500 1

Part 71--Transportation of Radioactive 1,000 to $78,800

Material.

Part 72--Independent Storage of Spent 283,000

Nuclear Fuel.

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

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

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

$421,000.

Footnote 1 of 10 CFR 171.16(d) is amended to provide a waiver of

the annual fees for materials licensees, and holders of certificates,

registrations, and approvals, who either filed for termination of their

licenses or approvals or filed for possession only/storage only

licenses before October 1, 1997, and permanently ceased licensed

activities entirely by September 30, 1997. All other licensees and

approval holders who held a license or approval on October 1, 1997, are

subject to the FY 1998 annual fees.

Holders of new licenses issued during FY 1998 are subject to a

prorated annual fee in accordance with the current proration provision

of Sec. 171.17. For example, those new materials licenses issued during

the period October 1 through March 31 of the fiscal year will be

assessed one-half the annual fee in effect on the anniversary date of

the license. New materials licenses issued on or after April 1, 1998,

will not be assessed an annual fee for FY 1998. Thereafter, the full

annual fee is due and payable each subsequent fiscal year on the

anniversary date of the license. Beginning June 11, 1996, (the

effective date of the FY 1996 final rule), affected materials licensees

are subject to the annual fee in effect on the anniversary date of the

license. The anniversary date of the materials license for annual fee

purposes is the first day of the month in which the original license

was issued.

Section 171.19 Payment

Paragraph (a) is revised to provide additional methods of payment

and to clarify that payments must be made in U.S. funds.

Paragraph (b) is revised to give credit for partial payments made

by certain licensees in FY 1998 toward their FY 1998 annual fees. The

NRC anticipates that the first, second, and third quarterly payments

for FY 1998 will have been made by operating power reactor licensees

and some large materials licensees before the final rule becomes

effective. Therefore, the NRC will credit payments received for those

quarterly annual fee assessments toward the total annual fee to be

assessed. The NRC will adjust the fourth quarterly invoice to

[[Page 31849]]

recover the full amount of the revised annual fee or to make refunds,

as necessary. Payment of the annual fee is due on the date of the

invoice and interest accrues from the invoice date. However, interest

will be waived if payment is received within 30 days from the invoice

date.

Paragraphs (c) and (d) are revised to delete specific fiscal year

references.

As in FY 1997, the NRC will continue to bill annual fees for most

materials licenses on the anniversary date of the license (licensees

whose annual fees are $100,000 or more will continue to be assessed

quarterly). The annual fee assessed will be the fee in effect on the

license anniversary date. This rule applies to those materials licenses

in the following fee categories: 1.C. and 1.D; 2.A. (2) through 2.C.;

3.A. through 3.P.; 4.A. through 9.D., and 10.B. For annual fee

purposes, the anniversary date of the materials license is considered

to be the first day of the month in which the original materials

license was issued. For example, if the original materials license was

issued on June 17 then, for annual fee purposes, the anniversary date

of the materials license is June 1 and the licensee will continue to be

billed in June of each year for the annual fee in effect on June 1.

Materials licensees with anniversary dates in FY 1998 before the

effective date of the FY 1998 final rule will be billed during the

anniversary month of the license and continue to pay annual fees at the

FY 1997 rate in FY 1998. Those materials licensees with license

anniversary dates falling on or after the effective date of the FY 1998

final rule will be billed, at the FY 1998 revised rates, during the

anniversary month of their license and payment will be due on the date

of the invoice.

During the past seven years many licensees have indicated that,

although they held a valid NRC license authorizing the possession and

use of special nuclear, source, or byproduct material, they were either

not using the material to conduct operations or had disposed of the

material and no longer needed the license. In response, the NRC has

consistently stated that annual fees are assessed based on whether a

licensee holds a valid NRC license that authorizes possession and use

of radioactive material. Whether or not a licensee is actually

conducting operations using the material is a matter of licensee

discretion. The NRC cannot control whether a licensee elects to possess

and use radioactive material once it receives a license from the NRC.

Therefore, the NRC reemphasizes that the annual fee will be assessed

based on whether a licensee holds a valid NRC license that authorizes

possession and use of radioactive material. To remove any uncertainty,

the NRC issued minor clarifying amendments to 10 CFR 171.16, footnotes

1 and 7 on July 20, 1993 (58 FR 38700).

V. Environmental Impact: Categorical Exclusion

The NRC has determined that this final 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 final regulation. By its very

nature, this regulatory action does not affect the environment, and

therefore, no environmental justice issues are raised.

VI. Paperwork Reduction Act Statement

This final rule contains no information collection requirements

and, therefore, is not subject to the requirements of the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

VII. Regulatory Analysis

With respect to 10 CFR Part 170, this final 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) that required for FYs 1991 through 1995, approximately

100 percent of the NRC budget authority be recovered through the

assessment of fees. OBRA-90 was amended in 1993 to extend the 100

percent fee recovery requirement for NRC through FY 1998. To accomplish

this statutory requirement, the NRC, in accordance with Sec. 171.13, is

publishing the final amount of the FY 1998 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 1998 budget of

$472.8 million less the amounts collected from Part 170 fees and the

funds directly appropriated from the NWF to cover the NRC's high level

waste program and the general fund related to commercial vitrification

of waste at the Department of Energy Hanford, Washington, site and the

pilot program pertaining to external regulation of the Department of

Energy;

(2) The annual fees shall, to the maximum extent practicable, have

a reasonable relationship to the cost of

[[Page 31850]]

regulatory services provided by the Commission; and

(3) The annual fees be assessed to those licensees the Commission,

in its discretion, determines can fairly, equitably, and practicably

contribute to their payment.

10 CFR Part 171, which established annual fees for operating power

reactors effective October 20, 1986 (51 FR 33224; September 18, 1986),

was challenged and upheld in its entirety in Florida Power and Light

Company v. United States, 846 F.2d 765 (D.C. Cir. 1988), cert. denied,

490 U.S. 1045 (1989).

The NRC's FY 1991 annual fee rule was largely upheld by the D.C.

Circuit Court of Appeals in Allied Signal v. NRC, 988 F.2d 146 (D.C.

Cir. 1993).

VIII. Regulatory Flexibility Analysis

The NRC is required by the Omnibus Budget Reconciliation Act of

1990 to recover approximately 100 percent of its budget authority

through the assessment of user fees. OBRA-90 further requires that the

NRC establish a schedule of charges that fairly and equitably allocates

the aggregate amount of these charges among licensees.

This final rule establishes the schedules of fees that are

necessary to implement the Congressional mandate for FY 1998. The final

rule results in a slight decrease in the annual fees charged to some

licensees, and holders of certificates, registrations, and approvals.

The Regulatory Flexibility Analysis, prepared in accordance with 5

U.S.C. 604, is included as Appendix A to this final rule. The Small

Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) was

signed into law on March 29, 1996. The SBREFA requires all Federal

agencies to prepare a written compliance guide for each rule for which

the agency is required by 5 U.S.C. 604 to prepare a regulatory

flexibility analysis. Therefore, in compliance with the law, Attachment

1 to the Regulatory Flexibility Analysis (Appendix A to this document)

is the small entity compliance guide for FY 1998.

IX. Backfit Analysis

The NRC has determined that the backfit rule, 10 CFR 50.109, does

not apply to this final rule; and therefore, a backfit analysis is not

required for this final rule because these amendments do not involve

any provisions that would impose backfits as defined in 10 CFR Chapter

I.

X. Small Business Regulatory Enforcement Fairness Act

In accordance with the Small Business Regulatory Enforcement

Fairness Act of 1996 the NRC has determined that this action is a major

rule and has verified this determination with the Office of Information

and Regulatory Affairs of the Office of Management and Budget.

List of Subjects

10 CFR Part 2

Administrative practice and procedure, Antitrust, Byproduct

material, Classified information, Environmental protection, Nuclear

materials, Nuclear power plants and reactors, Penalties, Sex

discrimination, Source material, Special nuclear material, Waste

treatment and disposal.

10 CFR Part 140

Criminal penalties, Extraordinary nuclear occurrence, Insurance,

Intergovernmental relations, Nuclear materials, Nuclear power plants

and reactors, Penalties, Reporting and recordkeeping requirements.

10 CFR Part 170

Byproduct material, Import and export licenses, Intergovernmental

relations, Non-payment penalties, Nuclear materials, Nuclear power

plants and reactors, Source material, Special nuclear material.

10 CFR Part 171

Annual charges, Byproduct material, Holders of certificates,

registrations, approvals, Intergovernmental relations, Non-payment

penalties, Nuclear materials, Nuclear power plants and reactors, Source

material, Special nuclear material.

For the reasons set out in the preamble and under the authority of

the Atomic Energy Act of 1954, as amended, and 5 U.S.C. 552 and 553,

the NRC is adopting the following amendments to 10 CFR Parts 2, 140,

170 and 171.

PART 2--RULES OF PRACTICE FOR DOMESTIC LICENSING PROCEEDINGS AND

ISSUANCE OF ORDERS

1. The authority citation for Part 2 continues to read as follows:

Authority: Secs. 161, 181, 68 Stat. 948, 953, as amended (42

U.S.C. 2201, 2231); sec. 191, as amended, Pub. L. 87-615, 76 Stat.

409 (42 U.S.C. 2241); sec. 201, 88 Stat. 1242, as amended (42 U.S.C.

5841); 5 U.S.C. 552.

Section 2.101 also issued under secs. 53, 62, 63, 81, 103, 104,

105, 68 Stat. 930, 932, 933, 935, 936, 937, 938, as amended (42

U.S.C. 2073, 2092, 2093, 2111, 2133, 2134, 2135); sec. 114(f), Pub.

L. 97-425, 96 Stat. 2213, as amended (42 U.S.C. 10134(f)); sec. 102,

Pub. L. 91-190, 83 Stat. 853, as amended (42 U.S.C. 4332); sec. 301,

88 Stat. 1248 (42 U.S.C. 5871). Sections 2.102, 2.103, 2.104, 2.105,

2.721 also issued under secs. 102, 103, 104, 105, 183, 189, 68 Stat.

936, 937, 938, 954, 955, as amended (42 U.S.C. 2132, 2133, 2134,

2135, 2233, 2239). Section 2.105 also issued under Pub. L. 97-415,

96 Stat. 2073 (42 U.S.C. 2239). Sections 2.200-2.206 also issued

under secs. 161 b, I, o, 182, 186, 234, 68 Stat. 948-951, 955, 83,

Stat. 444, as amended (42 U.S.C. 2201 (b), (I), (o), 2236, 2282);

sec. 206, 88 Stat. 1246 (42 U.S.C. 5846). Section 2.205(j) also

issued under Pub. L. 101-410, 104 Stat. 890, as amended by section

31001(s), Pub. L. 104-134, 110 Stat. 1321-373 (28 U.S.C. 2461 note).

Sections 2.600-2.606 also issued under sec. 102, Pub. L. 91-190, 83

Stat. 853, as amended (42 U.S.C. 4332). Sections 2.700a, 2.719 also

issued under 5 U.S.C. 554. Sections 2.754, 2.760, 2.770, 2.780 also

issued under 5 U.S.C. 557. Section 2.764 also issued under secs.

135, 141, Pub. L. 97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155,

10161). Section 2.790 also issued under sec. 103, 68 Stat. 936, as

amended (42 U.S.C. 2133) and 5 U.S.C. 552. Sections 2.800 and 2.808

also issued under 5 U.S.C. 553. Section 2.809 also issued under 5

U.S.C. 553 and sec. 29, Pub. L. 85-256, 71 Stat. 579, as amended (42

U.S.C. 2039). Subpart K also issued under sec. 189, 68 Stat. 955 (42

U.S.C. 2239); sec. 134, Pub. L. 97-425, 96 Stat. 2230 (42 U.S.C.

10154). Subpart L also issued under sec. 189, 68 Stat. 955 (42

U.S.C. 2239). Appendix A also issued under sec. 6, Pub. L. 91-560,

84 Stat. 1473 (42 U.S.C. 2135).

2. In Sec. 2.205, paragraph (i) is revised to read as follows:

Sec. 2.205 Civil penalties.

* * * * *

(i) Except when payment is made after compromise or mitigation by

the Department of Justice or as ordered by a court of the United

States, following reference of the matter to the Attorney General for

collection, payment of civil penalties imposed under Section 234 of the

Act are to be made payable to the U.S. Nuclear Regulatory Commission,

in U.S. funds, by check, draft, money order, credit card, or electronic

funds transfer such as Automated Clearing House (ACH) using Electronic

Data Interchange (EDI). Federal agencies may also make payment by the

On-Line Payment and Collections System (OPAC's). All payments are to be

made in accordance with the specific payment instructions provided with

Notices of Violation that propose civil penalties and Orders Imposing

Civil Monetary Penalties.

* * * * *

PART 140--FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY

AGREEMENTS

3. The authority citation for Part 140 continues to read as

follows:

Authority: Secs. 161, 170, 68 Stat. 948, 71 Stat. 576, as

amended (42 U.S.C. 2201, 2210); secs. 201, as amended, 202, 88 Stat.

1242, as amended, 1244 (42 U.S.C. 5841, 5842).

[[Page 31851]]

4. In Sec. 140.7, paragraphs (a) and (c) are revised and paragraph

(d) is added to read as follows:

Sec. 140.7 Fees.

(a)(1) Each reactor licensee shall pay a fee to the Commission

based on the following schedule:

(i) For indemnification from $500 million to $400 million

inclusive, a fee of $30 per year per thousand kilowatts of thermal

capacity authorized in the license;

(ii) For indemnification from $399 million to $300 million

inclusive, a fee of $24 per year per thousand kilowatts of thermal

capacity authorized in the license;

(iii) For indemnification from $299 million to $200 million

inclusive, a fee of $18 per year per thousand kilowatts of thermal

capacity authorized in the license;

(iv) For indemnification from $199 million to $100 million

inclusive, a fee of $12 per year per thousand kilowatts of thermal

capacity authorized in the license; and

(v) For indemnification from $99 million to $1 million inclusive, a

fee of $6 per year per thousand kilowatts of thermal capacity

authorized in the license.

(2) No fee will be less than $100 per annum for any nuclear

reactor. This fee is for the period beginning with the date on which

the applicable indemnity agreement is effective. The various levels of

indemnity fees are set forth in the schedule in this paragraph. The

amount of indemnification for determining indemnity fees will be

computed by subtracting from the statutory limit of liability the

amount of financial protection required of the licensee. In the case of

licensees subject to the provision of Sec. 140.11(a)(4), this total

amount will be the amount, as determined by the Commission, of the

financial protection available to licensees at the close of the

calendar year preceding the one in which the fee becomes due. For those

instances in which a certified financial statement is provided as a

guarantee of payment of deferred premiums in accordance with

Sec. 140.21(e), a fee of $1,000 or the indemnity fee, whichever is

greater, is required.

* * * * *

(c) Each person licensed to possess and use plutonium in a

plutonium processing and fuel fabrication plant shall pay to the

Commission a fee of $5,000 per year for indemnification. This fee is

for the period beginning with the date on which the applicable

indemnity agreement is effective.

(d) Indemnity fee payments, made payable to the U.S. Nuclear

Regulatory Commission, are to be made in U.S. funds by check, draft,

money order, credit card, or electronic funds transfer such as ACH

(Automated Clearing House) using EDI (Electronic Data Interchange).

Federal agencies may also make payments by the On-Line Payment and

Collections System (OPAC's). Where specific payment instructions are

provided on the invoices, payment should be made accordingly, e.g.

invoices of $5,000 or more should be paid via ACH through NRC's Lockbox

Bank at the address indicated on the invoice. Credit card payments

should be made up to the limit established by the credit card bank, in

accordance with specific instructions provided with the invoices, to

the Lockbox Bank designated for credit card payments.

PART 170--FEES FOR FACILITIES, MATERIALS, IMPORT AND EXPORT

LICENSES, AND OTHER REGULATORY SERVICES UNDER THE ATOMIC ENERGY ACT

OF 1954, AS AMENDED

5. The authority citation for Part 170 continues to read as

follows:

Authority: 31 U.S.C. 9701, 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.

901).

6. In Section 170.12, paragraphs (g) and (h) are revised to read as

follows:

Sec. 170.12 Payment of fees.

* * * * *

(g) Inspection fees. (1) Inspection fees will be assessed to

recover full cost for each resident inspector assigned to a specific

plant or facility. The fees will be assessed for all of the resident

inspectors' time, excluding leave and time spent by a resident

inspector in support of activities at another site. The hours will be

billed at the appropriate hourly rate established in Sec. 170.20.

(2) Fees for all inspections subject to full cost recovery will be

assessed on a per inspection basis for costs incurred up to

approximately 30 days after issuance of the inspection report.

Inspection costs include preparation time, time on site, documentation

time, and follow-up activities and any associated contractual service

costs, but exclude the time involved in the processing and issuance of

a notice of violation or civil penalty.

(3) Fees for resident inspectors' time and for specific inspections

subject to full cost recovery will be billed on a quarterly basis and

are payable upon notification by the Commission.

(h) Method of payment. All license fee payments, made payable to

the U.S. Nuclear Regulatory Commission, are to be made in U.S. funds by

check, draft, money order, credit card, or electronic funds transfer

such as ACH (Automated Clearing House) using EDI (Electronic Data

Interchange). Payment of invoices of $5,000 or more should be paid via

ACH through NRC's Lockbox Bank at the address indicated on the invoice.

Credit card payments should be made up to the limit established by the

credit card bank at the address indicated on the invoice. Applicants

and licensees should contact the License Fee and Accounts Receivable

Branch at 301-415-7554 to obtain specific written instructions for

making electronic payments and credit card payments.

* * * * *

7. Section 170.20 is revised to read as follows:

Sec. 170.20 Average cost per professional staff-hour.

Fees for permits, licenses, amendments, renewals, special projects,

Part 55 requalification and replacement examinations and tests, other

required reviews, approvals, and inspections under Secs. 170.21 and

170.31 that are based upon the full costs for the review or inspection

will be calculated using the following applicable professional staff-

hour rates:

Reactor Program (Sec. 170.21 $124 per hour.

Activities).

Nuclear Materials and Nuclear Waste $121 per hour.

Program (Sec. 170.31 Activities).

8. In Sec. 170.21, the introductory text, Category K in the table,

and footnotes 1 and 2 to the table are revised to read as follows:

Sec. 170.21 Schedule of fees for production and utilization

facilities, review of standard referenced design approvals, special

projects, inspections and import and export licenses.

Applicants for construction permits, manufacturing licenses,

operating licenses, import and export licenses, approvals of facility

standard reference designs, requalification and replacement

examinations for reactor operators, and special projects and holders of

construction permits, licenses, and other approvals shall pay fees for

the following categories of services:

[[Page 31852]]

Schedule of Facility Fees

[See footnotes at end of table]

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

Facility categories and type of fees Fees \1\ \2\

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

* * * *

* * *

K. Import and export licenses:

Licenses for the import and export only of

production and utilization facilities or the export

only of components for production and utilization

facilities issued pursuant to 10 CFR Part 110:

1. Application for import or export of reactors

and other facilities and exports of components

which must be reviewed by the Commissioners and

the Executive Branch, for example, actions

under 10 CFR 110.40(b).

Application-new license..................... $7,900

Amendment................................... $7,900

2. Application for export of reactor and other

components requiring Executive Branch review

only, for example, those actions under 10 CFR

110.41(a)(1)-(8).

Application--new license.................... $4,800

Amendment................................... $4,800

3. Application for export of components

requiring foreign government assurances only.

Application--new license.................... $2,800

Amendment................................... $2,800

4. Application for export of facility components

and equipment not requiring Commissioner

review, Executive Branch review, or foreign

government assurances.

Application--new license.................... $1,200

Amendment................................... $1,200

5. Minor amendment of any export or import

license to extend the expiration date, change

domestic information, or make other revisions

which do not require in-depth analysis or

review.

Amendment................................... $180

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

\1\ Fees will not be charged for orders issued by the Commission

pursuant to Sec. 2.202 of this chapter or for amendments resulting

specifically from the requirements of these types of Commission

orders. Fees will be charged for approvals issued under a specific

exemption provision of the Commission's regulations under Title 10 of

the Code of Federal Regulations (e.g., Secs. 50.12, 73.5) and any

other sections now or hereafter in effect regardless of whether the

approval is in the form of a license amendment, letter of approval,

safety evaluation report, or other form. Fees for licenses in this

schedule that are initially issued for less than full power are based

on review through the issuance of a full power license (generally full

power is considered 100 percent of the facility's full rated power).

Thus, if a licensee received a low power license or a temporary

license for less than full power and subsequently receives full power

authority (by way of license amendment or otherwise), the total costs

for the license will be determined through that period when authority

is granted for full power operation. If a situation arises in which

the Commission determines that full operating power for a particular

facility should be less than 100 percent of full rated power, the

total costs for the license will be at that determined lower operating

power level and not at the 100 percent capacity.

\2\ Full cost fees will be determined based on the professional staff

time and appropriate contractual support services expended. For

applications currently on file and for which fees are determined based

on the full cost expended for the review, the professional staff hours

expended for the review of the application up to the effective date of

the final rule will be determined at the professional rates in effect

at the time the service was provided. For those applications currently

on file for which review costs have reached an applicable fee ceiling

established by the June 20, 1984, and July 2, 1990, rules but are

still pending completion of the review, the cost incurred after any

applicable ceiling was reached through January 29, 1989, will not be

billed to the applicant. Any professional staff-hours expended above

those ceilings on or after January 30, 1989, will be assessed at the

applicable rates established by Sec. 170.20, as appropriate, except

for topical reports whose costs exceed $50,000. Costs which exceed

$50,000 for any topical report, amendment, revision or supplement to a

topical report completed or under review from January 30, 1989,

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

professional hours expended on or after August 9, 1991, will be

assessed at the applicable rate established in Sec. 170.20. In no

event will the total review costs be less than twice the hourly rate

shown in Sec. 170.20.

* * * * *

9. 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............... $560.

Amendment.............................. $380.

[[Page 31853]]

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............... $750.

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

E. Licenses or certificates for

construction and operation of a uranium

enrichment facility.

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

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

2. Source material:

A.(1) Licenses for possession and use of

source material in recovery operations

such as milling, in-situ leaching, heap-

leaching, refining uranium mill

concentrates to uranium hexafluoride, ore

buying stations, ion exchange facilities

and in processing of ores containing

source material for extraction of metals

other than uranium or thorium, including

licenses authorizing the possession of

byproduct waste material (tailings) from

source material recovery operations, as

well as licenses authorizing the

possession and maintenance of a facility

in a standby mode:

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

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

(2) Licenses that authorize the receipt of

byproduct material, as defined in Section

11e(2) of the Atomic Energy Act, from

other persons for possession and disposal

except those licenses subject to fees in

Category 2.A.(1).

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

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

(3) Licenses that authorize the receipt of

byproduct material, as defined in Section

11e(2) of the Atomic Energy Act, from

other persons for possession and disposal

incidental to the disposal of the uranium

waste tailings generated by the licensee's

milling operations, except those licenses

subject to the fees in Category 2.A.(1).

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

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

B. Licenses which authorize the possession,

use and/or installation of source material

for shielding:

Application--New license............... $120.

Amendment.............................. $280.

C. All other source material licenses:

Application--New license............... $3,600.

Amendment.............................. $560.

3. Byproduct material:

A. Licenses of broad scope for possession

and use of byproduct material issued

pursuant to Parts 30 and 33 of this

chapter for processing or manufacturing of

items containing byproduct material for

commercial distribution:

Application--New license............... $3,800.

Amendment.............................. $530.

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............... $1,500.

Amendment.............................. $560.

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 does not apply to licenses

issued to nonprofit educational

institutions whose processing or

manufacturing is exempt under Sec.

170.11(a)(4). These licenses are covered

by fee Category 3D.

Application--New license............... $6,800.

Amendment.............................. $630.

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 includes

licenses issued pursuant to Secs. 32.72,

32.73, and/or 32.74 of this chapter to

nonprofit educational institutions whose

processing or manufacturing is exempt

under Sec. 170.11(a)(4).

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

Amendment.............................. $420.

E. Licenses for possession and use of

byproduct material in sealed sources for

irradiation of materials in which the

source is not removed from its shield

(self-shielded units):

Application--New license............... $1,100.

Amendment.............................. $380.

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............... $1,900.

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

G. Licenses for possession and use of

10,000 curies or more of byproduct

material in sealed sources for irradiation

of materials in which the source is

exposed for irradiation purposes. This

category also includes underwater

irradiators for irradiation of materials

where the source is not exposed for

irradiation purposes.

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

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

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............... $2,700.

[[Page 31854]]

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

I. Licenses issued pursuant to Subpart A of

Part 32 of this chapter to distribute

items containing byproduct material or

quantities of byproduct material that do

not require device evaluation to persons

exempt from the licensing requirements of

Part 30 of this chapter, except for

specific licenses authorizing

redistribution of items that have been

authorized for distribution to persons

exempt from the licensing requirements of

Part 30 of this chapter:

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

Amendment.............................. $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............... $1,700.

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

K. Licenses issued pursuant to Subpart B of

Part 32 of this chapter to distribute

items containing byproduct material or

quantities of byproduct material that do

not require sealed source and/or device

review to persons generally licensed under

Part 31 of this chapter, except specific

licenses authorizing redistribution of

items that have been authorized for

distribution to persons generally licensed

under Part 31 of this chapter:

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

Amendment.............................. $340.

L. Licenses of broad scope for possession

and use of byproduct material issued

pursuant to Parts 30 and 33 of this

chapter for research and development that

do not authorize commercial distribution:

Application--New license............... $5,400.

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

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............... $1,800.

Amendment.............................. $620.

N. Licenses that authorize services for

other licensees, except:

(1) Licenses that authorize only

calibration and/or leak testing

services are subject to the fees

specified in fee Category 3P; and

(2) Licenses that authorize waste

disposal services are subject to the

fees specified in fee Categories 4A,

4B, and 4C:

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

Amendment.............................. $500.

O. Licenses for possession and use of

byproduct material issued pursuant to Part

34 of this chapter for industrial

radiography operations:

Application--New license............... $4,300.

Amendment.............................. $680.

P. All other specific byproduct material

licenses, except those in Categories 4A

through 9D:

Application--New license............... $730.

Amendment.............................. $340.

4. Waste disposal and processing:

A. Licenses specifically authorizing the

receipt of waste byproduct material,

source material, or special nuclear

material from other persons for the

purpose of contingency storage or

commercial land disposal by the licensee;

or licenses authorizing contingency

storage of low-level radioactive waste at

the site of nuclear power reactors; or

licenses for receipt of waste from other

persons for incineration or other

treatment, packaging of resulting waste

and residues, and transfer of packages to

another person authorized to receive or

dispose of waste material:

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

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

B. Licenses specifically authorizing the

receipt of waste byproduct material,

source material, or special nuclear

material from other persons for the

purpose of packaging or repackaging the

material. The licensee will dispose of the

material by transfer to another person

authorized to receive or dispose of the

material:

Application--New license............... $2,500.

Amendment.............................. $520.

C. Licenses specifically authorizing the

receipt of prepackaged waste byproduct

material, source material, or special

nuclear material from other persons. The

licensee will dispose of the material by

transfer to another person authorized to

receive or dispose of the material:

Application--New license............... $2,200.

Amendment.............................. $220.

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............... $3,400.

Amendment.............................. $820.

B. Licenses for possession and use of

byproduct material for field flooding

tracer studies:

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

6. Nuclear laundries:

A. Licenses for commercial collection and

laundry of items contaminated with

byproduct material, source material, or

special nuclear material:

Application--New license............... $6,400.

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

7. Medical licenses:

[[Page 31855]]

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............... $3,500.

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

B. Licenses of broad scope issued to

medical institutions or two or more

physicians pursuant to Parts 30, 33, 35,

40, and 70 of this chapter authorizing

research and development, including human

use of byproduct material, except licenses

for byproduct material, source material,

or special nuclear material in sealed

sources contained in teletherapy devices:

Application--New license............... $3,800.

Amendment.............................. $710.

C. Other licenses issued pursuant to Parts

30, 35, 40, and 70 of this chapter for

human use of byproduct material, source

material, and/or special nuclear material,

except licenses for byproduct material,

source material, or special nuclear

material in sealed sources contained in

teletherapy devices:

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

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

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............... $570.

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

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............... $3,600.

Amendment--each device................. $590.

B. Safety evaluation of devices or products

containing byproduct material, source

material, or special nuclear material

manufactured in accordance with the unique

specifications of, and for use by, a

single applicant, except reactor fuel

devices:

Application--each device............... $2,100.

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

C. Safety evaluation of sealed sources

containing byproduct material, source

material, or special nuclear material,

except reactor fuel, for commercial

distribution:

Application--each source............... $910.

Amendment--each source................. $610.

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............... $460.

Amendment--each source................. $160.

10. Transportation of radioactive material:

A. Evaluation of casks, packages, and

shipping containers:

Approval, renewal, amendment........... Full Cost.

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

B. Evaluation of 10 CFR Part 71 quality

assurance programs:

Application--Approval.................. $340.

Amendment.............................. $620.

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

11. Review of standardized spent fuel

facilities:

Approval, renewal, amendment........... Full Cost.

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

12. Special projects: \5\

Approvals and preapplication/Licensing Full Cost.

activities.

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

13. A. Spent fuel storage cask Certificate of

Compliance:

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

Amendments, revisions, and supplements. Full Cost.

Reapproval............................. Full Cost.

B. Inspections related to spent fuel Full Cost.

storage cask Certificate of Compliance.

C. Inspections related to storage of spent Full Cost.

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 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 Part 110 of

this chapter for the import and export

only of special nuclear material, source

material, tritium and other byproduct

material, heavy water, or nuclear grade

graphite.

A. Application for export or import of

high enriched uranium and other

materials, including radioactive

waste, which must be reviewed by the

Commissioners and the Executive

Branch, for example, those actions

under 10 CFR 110.40(b). This category

includes application for export or

import of radioactive wastes in

multiple forms from multiple

generators or brokers in the exporting

country and/or going to multiple

treatment, storage or disposal

facilities in one or more receiving

countries.

Application-new license............ $7,900.

Amendment.......................... $7,900.

[[Page 31856]]

B. Application for export or import of

special nuclear material, source

material, tritium and other byproduct

material, heavy water, or nuclear

grade graphite, including radioactive

waste, requiring Executive Branch

review but not Commissioner review.

This category includes application for

the export or import of radioactive

waste involving a single form of waste

from a single class of generator in

the exporting country to a single

treatment, storage and/or disposal

facility in the receiving country.

Application-new license............ $4,800.

Amendment.......................... $4,800.

C. Application for export of routine

reloads of low enriched uranium

reactor fuel and exports of source

material requiring only foreign

government assurances under the Atomic

Energy Act.

Application-new license............ $2,800.

Amendment.......................... $2,800.

D. Application for export or import of

other materials, including radioactive

waste, not requiring Commissioner

review, Executive Branch review, or

foreign government assurances under

the Atomic Energy Act. This category

includes application for export or

import of radioactive waste where the

NRC has previously authorized the

export or import of the same form of

waste to or from the same or similar

parties, requiring only confirmation

from the receiving facility and

licensing authorities that the

shipments may proceed according to

previously agreed understandings and

procedures.

Application-new license............ $1,200.

Amendment.......................... $1,200.

E. Minor amendment of any export or

import license to extend the

expiration date, change domestic

information, or make other revisions

which do not require in-depth

analysis, review, or consultations

with other agencies or foreign

governments.

Amendment.......................... $180.

16. Reciprocity:

Agreement State licensees who conduct

activities under the reciprocity

provisions of 10 CFR 150.20.

Application (initial filing of Form $1,100.

241).

Revisions.............................. $200.

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

\1\ Types of fees--Separate charges, as shown in the schedule, will be

assessed for preapplication consultations and reviews and applications

for new licenses and approvals, issuance of new licenses and

approvals, amendments and certain renewals to existing licenses and

approvals, safety evaluations of sealed sources and devices, and

certain inspections. The following guidelines apply to these charges:

(a) Application fees. Applications for new materials licenses and

approvals; applications to reinstate expired, terminated or inactive

licenses and approvals except those subject to fees assessed at full

costs, and applications filed by Agreement State licensees to register

under the general license provisions of 10 CFR 150.20, must be

accompanied by the prescribed application fee for each category,

except that:

(1) Applications for licenses covering more than one fee category of

special nuclear material or source material must be accompanied by the

prescribed application fee for the highest fee category.

(b) License/approval/review fees. Fees for applications for new licenses

and approvals and for preapplication consultations and reviews subject

to full cost fees (fee Categories 1A, 1B, 1E, 2A, 4A, 5B, 10A, 11, 12,

13A, and 14) are due upon notification by the Commission in accordance

with Sec. 170.12(b), (e), and (f).

(c) Renewal/reapproval fees. Applications subject to Full Cost.fees (fee

Categories 1A, 1B, 1E, 2A, 4A, 5B, 10A, 11, 13A, and 14) are due upon

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

(d) Amendment/Revision Fees.

(1) Applications for amendments to licenses and approvals and revisions

to reciprocity initial applications, except those subject to fees

assessed at full costs, must be accompanied by the prescribed

amendment/revision fee for each license/revision affected. An

application for an amendment to a license or approval classified in

more than one fee category must be accompanied by the prescribed

amendment fee for the category affected by the amendment unless the

amendment is applicable to two or more fee categories in which case

the amendment fee for the highest fee category would apply. For those

licenses and approvals subject to full costs (fee Categories 1A, 1B,

1E, 2A, 4A, 5B, 10A, 11, 12, 13A, and 14), amendment fees are due upon

notification by the Commission in accordance with Sec. 170.12(c).

(2) An application for amendment to a materials license or approval that

would place the license or approval in a higher fee category or add a

new fee category must be accompanied by the prescribed application fee

for the new category.

(3) An application for amendment to a license or approval that would

reduce the scope of a licensee's program to a lower fee category must

be accompanied by the prescribed amendment fee for the lower fee

category.

(4) Applications to terminate licenses authorizing small materials

programs, when no dismantling or decontamination procedure is

required, are not subject to fees.

(e) Inspection fees. Inspections resulting from investigations conducted

by the Office of Investigations and nonroutine inspections that result

from third-party allegations are not subject to fees. Inspection fees

are due upon notification by the Commission in accordance with Sec.

170.12(g).

\2\ Fees will not be charged for orders issued by the Commission

pursuant to 10 CFR 2.202 or for amendments resulting specifically from

the requirements of these types of Commission orders. However, fees

will be charged for approvals issued under a specific exemption

provision of the Commission's regulations under Title 10 of the Code

of Federal Regulations (e.g., 10 CFR 30.11, 40.14, 70.14, 73.5, and

any other sections now or hereafter in effect) regardless of whether

the approval is in the form of a license amendment, letter of

approval, safety evaluation report, or other form. In addition to the

fee shown, an applicant may be assessed an additional fee for sealed

source and device evaluations as shown in Categories 9A through 9D.

\3\ Full cost fees will be determined based on the professional staff

time and appropriate contractual support services expended. For those

applications currently on file and for which fees are determined based

on the Full Cost.expended for the review, the professional staff hours

expended for the review of the application up to the effective date of

the final rule will be determined at the professional rates in effect

at the time the service was provided. For applications currently on

file for which review costs have reached an applicable fee ceiling

established by the June 20, 1984, and July 2, 1990, rules, but are

still pending completion of the review, the cost incurred after any

applicable ceiling was reached through January 29, 1989, will not be

billed to the applicant. Any professional staff-hours expended above

those ceilings on or after January 30, 1989, will be assessed at the

applicable rates established by Sec. 170.20, as appropriate, except

for topical reports whose costs exceed $50,000. Costs which exceed

$50,000 for each topical report, amendment, revision, or supplement to

a topical report completed or under review from January 30, 1989,

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

professional hours expended on or after August 9, 1991, will be

assessed at the applicable rate established in Sec. 170.20. The

minimum total review cost is twice the hourly rate shown in Sec.

170.20.

\4\ Licensees paying fees under Categories 1A, 1B, and 1E are not

subject to fees under Categories 1C and 1D for sealed sources

authorized in the same license except in those instances in which an

application deals only with the sealed sources authorized by the

license. Applicants for new licenses that cover both byproduct

material and special nuclear material in sealed sources for use in

gauging devices will pay the appropriate application fee for fee

Category 1C only.

\5\ Fees will not be assessed for requests/reports submitted to the NRC:

[[Page 31857]]

(a) In response to a Generic Letter or NRC Bulletin that does not result

in an amendment to the license, does not result in the review of an

alternate method or reanalysis to meet the requirements of the Generic

Letter, or does not involve an unreviewed safety issue;

(b) In response to an NRC request (at the Associate Office Director

level or above) to resolve an identified safety, safeguards, or

environmental issue, or to assist NRC in developing a rule, regulatory

guide, policy statement, generic letter, or bulletin; or

(c) As a means of exchanging information between industry organizations

and the NRC for the purpose of supporting generic regulatory

improvements or efforts.

PART 171--ANNUAL FEES FOR REACTOR OPERATING LICENSES, AND FUEL

CYCLE LICENSES AND MATERIALS LICENSES, INCLUDING HOLDERS OF

CERTIFICATES OF COMPLIANCE, REGISTRATIONS, AND QUALITY ASSURANCE

PROGRAM APPROVALS AND GOVERNMENT AGENCIES LICENSED BY NRC

10. 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).

11. Section 171.13 is revised to read as follows:

Sec. 171.13 Notice.

The annual fees applicable to an operating reactor and to a

materials licensee, including a Government agency licensed by the NRC,

subject to this part and calculated in accordance with Secs. 171.15 and

171.16, will be published as a notice in the Federal Register as soon

as is practicable but no later than the third quarter of the fiscal

year. The annual fees will become due and payable to the NRC in

accordance with Sec. 171.19 except as provided in Sec. 171.17.

Quarterly payments of the annual fees of $100,000 or more will continue

during the fiscal year and be based on the applicable annual fees as

shown in Secs. 171.15 and 171.16 until a notice concerning the revised

amount of the fees for the fiscal year is published by the NRC. If the

NRC is unable to publish a final fee rule that becomes effective during

the current fiscal year, then fees would be assessed based on the rates

in effect for the previous fiscal year.

12. In Sec. 171.15, paragraphs (b), (c) introductory text, (c)(1),

(c)(2), (e), and (f) are revised to read as follows:

Sec. 171.15 Annual Fees: Reactor operating licenses.

* * * * *

(b) The FY 1998 annual fee for each operating power reactor which

must be collected by September 30, 1998, is $2,976,000. This fee has

been determined by adjusting the FY 1997 annual fee, (prior to

rounding) downward by about 0.1 percent. In the FY 1995 final rule, the

NRC stated it would stabilize annual fees by adjusting the annual fees

only by the percentage change (plus or minus) in NRC's total budget

authority and adjustments based on changes in 10 CFR Part 170 fees as

well as on the number of licensees paying the fees. The first

adjustment to the annual fees using this method occurred in FY 1996

when all annual fees were decreased 6.5 percent below the FY 1995

annual fees. The FY 1997 annual fees were also determined by using this

method. The FY 1997 annual fees increased 8.4 percent above the FY 1996

annual fees. The FY 1995 annual fee was comprised of a base annual fee

and an additional charge (surcharge). The activities comprising the

base FY 1995 annual fee are as follows:

(1) Power reactor safety and safeguards regulation except licensing

and inspection activities recovered under Part 170 of this chapter.

(2) Research activities directly related to the regulation of power

reactors.

(3) Generic activities required largely for NRC to regulate power

reactors, e.g., updating part 50 of this chapter, or operating the

Incident Response Center.

(c) The activities comprising the FY 1995 surcharge are as follows:

(1) Activities not attributable to an existing NRC licensee or

class of licensees; e.g., reviews submitted by other government

agencies (e.g., DOE) that do not result in a license or are not

associated with a license; international cooperative safety program and

international safeguards activities; low-level waste disposal generic

activities; uranium enrichment generic activities.

(2) Activities not currently assessed under 10 CFR Part 170

licensing and inspection fees based on existing Commission policy,

e.g., reviews and inspections conducted of nonprofit educational

institutions, and costs that would not be collected from small entities

based on Commission policy in accordance with the Regulatory

Flexibility Act.

* * * * *

(e) The FY 1998 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........................................... $57,300

Test reactor............................................... $57,300

(f) For each fiscal year, annual fees for operating reactors will

be calculated and assessed in accordance with Sec. 171.13.

13. In Sec. 171.16, the introductory text and table of paragraph

(c) and paragraphs (c)(1), (c)(4), (d), and (e) are revised to read as

follows:

Sec. 171.16 Annual Fees: Material 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 1998 as follows:

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

Maximum

annual fee

per

licensed

category

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

Small Businesses Not Engaged in Manufacturing and Small Not-

For-Profit Organizations (Gross Annual Receipts):

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

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

Manufacturing entities that have an average of 500

employees or less:

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

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

Small Governmental Jurisdictions (Including publicly

supported educational institutions) (Population):

[[Page 31858]]

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

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

Educational Institutions that are not State or Publicly

Supported, and have 500 Employees or Less:

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

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

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

(1) A licensee qualifies as a small entity if it meets the size

standards established by the NRC (See 10 CFR 2.810).

* * * * *

(4) For FY 1998, the maximum annual fee a small entity is required

to pay is $1,800 for each category applicable to the license(s).

(d) The FY 1998 annual fees for materials licensees and holders of

certificates, registrations or approvals subject to fees under this

section are shown below. The FY 1998 annual fees, which must be

collected by September 30, 1998, have been determined by adjusting

downward the FY 1997 exact annual fees (prior to rounding), by about

0.1 percent. As a result of rounding, the FY 1998 annual fee for some

fee categories is the same as the FY 1997 annual fee. In the FY 1995

final rule, the NRC stated it would stabilize annual fees by adjusting

the annual fees only by the percentage change (plus or minus) in NRC's

total budget authority and adjustments based on changes in 10 CFR Part

170 fees as well as on the number of licensees paying the fees. The

first adjustment to the annual fees using this method occurred in FY

1996, when all annual fees were decreased 6.5 percent below the FY 1995

annual fees. The FY 1997 annual fees were also determined by using this

method. The FY 1997 annual fees were increased 8.4 percent above the FY

1996 annual fees. The FY 1995 annual fee was comprised of a base annual

fee and an additional charge (surcharge). The activities comprising the

FY 1995 surcharge are shown for convenience in paragraph (e) of this

section.

Schedule of Materials Annual Fees and Fees for Government Agencies

Licensed by NRC

[See footnotes at end of table]

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

Annual Fees 1,

Category of materials licenses 2, 3

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

1. Special nuclear material:

A. (1) Licenses for possession and use of U-235 or

plutonium for fuel fabrication activities.

(a) Strategic Special Nuclear Material:

Babcock & Wilcox SNM-42..................... $2,604,000

Nuclear Fuel Services SNM-124............... 2,604,000

(b) Low Enriched Uranium in Dispersible Form

Used for Fabrication of Power Reactor Fuel:

Combustion Engineering (Hematite) SNM-33.... 1,278,000

General Electric Company SNM-1097........... 1,278,000

Siemens Nuclear Power SNM-1227.............. 1,278,000

Westinghouse Electric Company SNM-1107...... 1,278,000

(2) All other special nuclear materials licenses not

included in Category 1.A.(1) which are licensed for

fuel cycle activities.

(a) Facilities with limited operations:

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

(b) All Others:

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

B. Licenses for receipt and storage of spent fuel at

an independent spent fuel storage installation

(ISFSI)............................................ 283,000

C. Licenses for possession and use of special

nuclear material in sealed sources contained in

devices used in industrial measuring systems,

including x-ray fluorescence analyzers............. 1,300

D. All other special nuclear material licenses,

except licenses authorizing special nuclear

material in unsealed form in combination that would

constitute a critical quantity, as defined in Sec.

150.11 of this chapter, for which the licensee

shall pay the same fees as those for Category

1.A.(2) ........................................... 3,100

E. Licenses or certificates for the operation of a

uranium enrichment facility........................ 2,604,000

2. Source material:

A. (1) Licenses for possession and use of source

material for refining uranium mill concentrates to

uranium hexafluoride............................... 648,000

(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\.......................... 61,700

Class II facilities \4\......................... 34,900

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

(3) Licenses that authorize the receipt of byproduct

material, as defined in Section 11e.(2) of the

Atomic Energy Act, from other persons for

possession and disposal, except those licenses

subject to the fees in Category 2.A.(2) orCategory

2.A.(4)............................................ 45,300

(4) Licenses that authorize the receipt of byproduct

material, as defined in Section 11e.(2) of the

Atomic Energy Act, from other persons for

possession and disposal incidental to the disposal

of the uranium waste tailings generated by the

licensee's milling operations, except those

licenses subject to the fees in Category 2.A.(2)... 8,000

B. Licenses which authorize only the possession, use

and/or installation of source material for

shielding.......................................... 490

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

[[Page 31859]]

3. Byproduct material:

A. Licenses of broad scope for possession and use of

byproduct material issued pursuant to Parts 30 and

33 of this chapter for processing or manufacturing

of items containing byproduct material for

commercial distribution............................ 16,600

B. Other licenses for possession and use of

byproduct material issued pursuant to Part 30 of

this chapter for processing or manufacturing of

items containing byproduct material for commercial

distribution....................................... 5,600

C. Licenses issued pursuant to 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. This category does

not apply to licenses issued to nonprofit

educational institutions whose processing or

manufacturing is exempt under Sec. 171.11(a)(1).

These licenses are covered by fee Category 3D...... 11,200

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 includes licenses

issued pursuant to Secs. 32.72, 32.73 and 32.74 of

this chapter to nonprofit educational institutions

whose processing or manufacturing is exempt under

Sec. 171.11(a)(1). This category also includes the

possession and use of source material for shielding

authorized pursuant to Part 40 of this chapter when

included on the same license....................... 4,400

E. Licenses for possession and use of byproduct

material in sealed sources for irradiation of

materials in which the source is not removed from

its shield (self-shielded units)................... 3,200

F. Licenses for possession and use of less than

10,000 curies of byproduct material in sealed

sources for irradiation of materials in which the

source is exposed for irradiation purposes. This

category also includes underwater irradiators for

irradiation of materials in which the source is not

exposed for irradiation purposes................... 3,800

G. Licenses for possession and use of 10,000 curies

or more of byproduct material in sealed sources for

irradiation of materials in which the source is

exposed for irradiation purposes. This category

also includes underwater irradiators for

irradiation of materials in which the source is not

exposed for irradiation purposes................... 19,700

H. Licenses issued pursuant to Subpart A of Part 32

of this chapter to distribute items containing

byproduct material that require device review to

persons exempt from the licensing requirements of

Part 30 of this chapter, except specific licenses

authorizing redistribution of items that have been

authorized for distribution to persons exempt from

the licensing requirements of Part 30 of this

chapter............................................ 5,000

I. Licenses issued pursuant to Subpart A of Part 32

of this chapter to distribute items containing

byproduct material or quantities of byproduct

material that do not require device evaluation to

persons exempt from the licensing requirements of

Part 30 of this chapter, except for specific

licenses authorizing redistribution of items that

have been authorized for distribution to persons

exempt from the licensing requirements of Part 30

of this chapter.................................... 8,900

J. Licenses issued pursuant to Subpart B of Part 32

of this chapter to distribute items containing

byproduct material that require sealed source and/

or device review to persons generally licensed

under Part 31 of this chapter, except specific

licenses authorizing redistribution of items that

have been authorized for distribution to persons

generally licensed under Part 31 of this chapter... 3,800

K. Licenses issued pursuant to Subpart B of Part 31

of this chapter to distribute items containing

byproduct material or quantities of byproduct

material that do not require sealed source and/or

device review to persons generally licensed under

Part 31 of this chapter, except specific licenses

authorizing redistribution of items that have been

authorized for distribution to persons generally

licensed under Part 31 of this chapter............. 3,200

L. Licenses of broad scope for possession and use of

byproduct material issued pursuant to Parts 30 and

33 of this chapter for research and development

that do not authorize commercial distribution...... 12,300

M. Other licenses for possession and use of

byproduct material issued pursuant to Part 30 of

this chapter for research and development that do

not authorize commercial distribution.............. 5,500

N. Licenses that authorize services for other

licensees, except:

(1) Licenses that authorize only calibration and/

or leak testing services are subject to the

fees specified in fee Category 3P; and

(2) Licenses that authorize waste disposal

services are subject to the fees specified in

fee Categories 4A, 4B, and 4C 6,100

O. Licenses for possession and use of byproduct

material issued pursuant to Part 34 of this chapter

for industrial radiography operations. This

category also includes the possession and use of

source material for shielding authorized pursuant

to Part 40 of this chapter when authorized on the

same license....................................... 14,000

P. All other specific byproduct material licenses,

except those in Categories 4A through 9D........... 1,700

4. Waste disposal and processing:

A. Licenses specifically authorizing the receipt of

waste byproduct material, source material, or

special nuclear material from other persons for the

purpose of contingency storage or commercial land

disposal by the licensee; or licenses authorizing

contingency storage of low-level radioactive waste

at the site of nuclear power reactors; or licenses

for receipt of waste from other persons for

incineration or other treatment, packaging of

resulting waste and residues, and transfer of

packages to another person authorized to receive or

dispose of waste material.......................... \5\ 102,000

B. Licenses specifically authorizing the receipt of

waste byproduct material, source material, or

special nuclear material from other persons for the

purpose of packaging or repackaging the material.

The licensee will dispose of the material by

transfer to another person authorized to receive or

dispose of the material............................ 14,500

C. Licenses specifically authorizing the receipt of

prepackaged waste byproduct material, source

material, or special nuclear material from other

persons. The licensee will dispose of the material

by transfer to another person authorized to receive

or dispose of the material......................... 7,700

5. Well logging:

A. Licenses for possession and use of byproduct

material, source material, and/or special nuclear

material for well logging, well surveys, and tracer

studies other than field flooding tracer studies... 8,200

B. Licenses for possession and use of byproduct

material for field flooding tracer studies......... 13,200

[[Page 31860]]

6. Nuclear laundries:

A. Licenses for commercial collection and laundry of

items contaminated with byproduct material, source

material, or special nuclear material.............. 14,700

7. Medical licenses:

A. Licenses issued pursuant to Parts 30, 35, 40, and

70 of this chapter for human use of byproduct

material, source material, or special nuclear

material in sealed sources contained in teletherapy

devices. This category also includes the possession

and use of source material for shielding when

authorized on the same license..................... 10,300

B. Licenses of broad scope issued to medical

institutions or two or more physicians pursuant to

Parts 30, 33, 35, 40, and 70 of this chapter

authorizing research and development, including

human use of byproduct material except licenses for

byproduct material, source material, or special

nuclear material in sealed sources contained in

teletherapy devices. This category also includes

the possession and use of source material for

shielding when authorized on the same license.\9\.. 23,500

C. Other licenses issued pursuant to Parts 30, 35,

40, and 70 of this chapter for human use of

byproduct material, source material, and/or special

nuclear material except licenses for byproduct

material, source material, or special nuclear

material in sealed sources contained in teletherapy

devices. This category also includes the possession

and use of source material for shielding when

authorized on the same license.\9\................. 4,700

8. Civil defense:

A. Licenses for possession and use of byproduct

material, source material, or special nuclear

material for civil defense activities.............. 1,800

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

A. Registrations issued for the safety evaluation of

devices or products containing byproduct material,

source material, or special nuclear material,

except reactor fuel devices, for commercial

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

B. Registrations issued for the safety evaluation of

devices or products containing byproduct material,

source material, or special nuclear material

manufactured in accordance with the unique

specifications of, and for use by, a single

applicant, except reactor fuel devices............. 3,700

C. Registrations issued for the safety evaluation of

sealed sources containing byproduct material,

source material, or special nuclear material,

except reactor fuel, for commercial distribution... 1,600

D. Registrations issued for the safety evaluation of

sealed sources containing byproduct material,

source material, or special nuclear material,

manufactured in accordance with the unique

specifications of, and for use by, a single

applicant, except reactor fuel..................... 780

10. Transportation of radioactive material:

A. Certificates of Compliance or other package

approvals issued for design of casks, packages, and

shipping containers.

Spent Fuel, High-Level Waste, and plutonium air

packages....................................... \6\ N/A

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

B. Approvals issued of 10 CFR Part 71 quality

assurance programs.

Users and Fabricators........................... 78,800

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

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

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

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

B. General licenses for storage of spent fuel under

10 CFR 72.210...................................... 283,000

14. Byproduct, source, or special nuclear material

licenses and other approvals authorizing

decommissioning, decontamination, reclamation, or site

restoration activities pursuant to 10 CFR Parts 30, 40,

70, and 72............................................. \7\ N/A

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

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

17. Master materials licenses of broadscope issued to

Government agencies.................................... 421,000

18. Department of Energy:

A. Certificates of Compliance....................... \10\ $1,168,00

0

B. Uranium Mill Tailing Radiation Control Act

(UMTRCA) activities................................ 1,964,000

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

\1\ Annual fees will be assessed based on whether a licensee held a

valid license with the NRC authorizing possession and use of

radioactive material during the fiscal year. However, the annual fee

is waived for those materials licensees and holders of certificates,

registrations, and approvals who either filed for termination of their

licenses or approvals or filed for possession only/storage licenses

prior to October 1, 1997, and permanently ceased licensed activities

entirely by September 30, 1997. Annual fees for licensees who filed

for termination of a license, downgrade of a license, or for a POL

during the fiscal year and for new licenses issued during the fiscal

year will be prorated in accordance with the provisions of Sec.

171.17. If a person holds more than one license, certificate,

registration, or approval, the annual fee(s) will be assessed for each

license, certificate, registration, or approval held by that person.

For licenses that authorize more than one activity on a single license

(e.g., human use and irradiator activities), annual fees will be

assessed for each category applicable to the license. Licensees paying

annual fees under Category 1.A.(1) are not subject to the annual fees

of Category 1.C and 1.D for sealed sources authorized in the license.

\2\ Payment of the prescribed annual fee does not automatically renew

the license, certificate, registration, or approval for which the fee

is paid. Renewal applications must be filed in accordance with the

requirements of Parts 30, 40, 70, 71, or 72 of this chapter.

\3\ Each fiscal year, fees for these materials licenses will be

calculated and assessed in accordance with Sec. 171.13 and will be

published in the Federal Register for notice and comment.

\4\ A Class I license includes mill licenses issued for the extraction

of uranium from uranium ore. A Class II license includes solution

mining licenses (in-situ and heap leach) issued for the extraction of

uranium from uranium ores including research and development licenses.

An ``other'' license includes licenses for extraction of metals, heavy

metals, and rare earths.

\5\ Two licenses were issued by NRC for land disposal of special nuclear

material. Once NRC issues an LLW disposal license for byproduct and

source material, the Commission will consider establishing an annual

fee for this type of license.

\6\ Standardized spent fuel facilities, 10 CFR Parts 71 and 72

Certificates of Compliance, and special reviews, such as topical

reports, are not assessed an annual fee because the generic costs of

regulating these activities are primarily attributable to the users of

the designs, certificates, and topical reports.

\7\ Licensees in this category are not assessed an annual fee because

they are charged an annual fee in other categories while they are

licensed to operate.

\8\ No annual fee is charged because it is not practical to administer

due to the relatively short life or temporary nature of the license.

[[Page 31861]]

\9\ Separate annual fees will not be assessed for pacemaker licenses

issued to medical institutions who also hold nuclear medicine licenses

under Categories 7B or 7C.

\10\ This includes Certificates of Compliance issued to DOE that are not

under the Nuclear Waste Fund.

(e) The activities comprising the FY 1995 surcharge are as follows:

(1) LLW disposal generic activities;

(2) Activities not attributable to an existing NRC licensee or

classes of licensees; e.g., international cooperative safety program

and international safeguards activities; support for the Agreement

State program; site decommissioning management plan (SDMP) activities;

and

(3) Activities not currently assessed licensing and inspection fees

under 10 CFR Part 170 based on existing law or Commission policy, e.g.,

reviews and inspections conducted of nonprofit educational institutions

and Federal agencies; activities related to decommissioning and

reclamation and costs that would not be collected from small entities

based on Commission policy in accordance with the Regulatory

Flexibility Act.

* * * * *

14. Section 171.19 is revised to read as follows:

Sec. 171.19 Payment.

(a) Method of payment. Annual fee payments, made payable to the

U.S. Nuclear Regulatory Commission, are to be made in U.S. funds by

check, draft, money order, credit card, or electronic funds transfer

such as ACH (Automated Clearing House) using EDI (Electronic Data

Interchange). Federal agencies may also make payment by the On-line

Payment and Collection System (OPAC's). Where specific payment

instructions are provided on the invoices to applicants and licensees,

payment should be made accordingly, e.g. invoices of $5,000 or more

should be paid via ACH through NRC's Lockbox Bank at the address

indicated on the invoice. Credit card payments should be made up to the

limit established by the credit card bank, in accordance with specific

instructions provided with the invoices, to the Lockbox Bank designated

for credit card payments.

(b) For FY 1998, the Commission will adjust the fourth quarterly

invoice for operating power reactors and certain materials licensees to

recover the full amount of the revised annual fee. If the amounts

collected in the first three quarters exceed the amount of the revised

annual fee, the overpayment will be refunded. All other licensees, or

holders of a certificate, registration, or approval of a QA program

will be sent a bill for the full amount of the annual fee on the

anniversary date of the license. Payment is due on the invoice date and

interest accrues from the date of the invoice. However, interest will

be waived if payment is received within 30 days from the invoice date.

(c) Annual fees in the amount of $100,000 or more and described in

the Federal Register notice pursuant to Sec. 171.13 must be paid in

quarterly installments of 25 percent as billed by the NRC. The quarters

begin on October 1, January 1, April 1, and July 1 of each fiscal year.

(d) Annual fees of less than $100,000 must be paid as billed by the

NRC. As established in FY 1996, materials license annual fees that are

less than $100,000 are billed on the anniversary date of the license.

The materials licensees that are billed on the anniversary date of the

license are those covered by fee categories 1.C. and 1.D.; 2.A.(2)

through 2.C.; 3.A. through 3.P.; 4.B. through 9.D.; and 10.B. For

annual fee purposes, the anniversary date of the license is considered

to be the first day of the month in which the original license was

issued by the NRC. Beginning June 11, 1996, the effective date of the

FY 1996 final rule, licensees that are billed on the license

anniversary date will be assessed the annual fee in effect on the

anniversary date of the license. Materials licenses subject to the

annual fee that are terminated during the fiscal year but prior to the

anniversary month of the license will be billed upon termination for

the fee in effect at the time of the billing. New materials licenses

subject to the annual fee will be billed in the month the license is

issued or in the next available monthly billing for the fee in effect

on the anniversary date of the license. Thereafter, annual fees for new

licenses will be assessed in the anniversary month of the license.

Dated at Rockville, Maryland, this 22nd day of May, 1998.

For the Nuclear Regulatory Commission.

Jesse L. Funches,

Chief Financial Officer.

Note: The following appendix will not appear in the Code of

Federal Regulations.

Appendix A to This Final Rule--Regulatory Flexibility Analysis for the

Amendments to 10 CFR Part 170 (License Fees) and 10 CFR Part 171

(Annual Fees)

I. Background

The Regulatory Flexibility Act of 1980, as amended, (5 U.S.C.

601 et seq.) establishes as a principle of regulatory practice that

agencies endeavor to fit regulatory and informational requirements,

consistent with applicable statutes, to a scale commensurate with

the businesses, organizations, and government jurisdictions to which

they apply. To achieve this principle, the Act requires that

agencies consider the impact of their actions on small entities. If

the agency cannot certify that a rule will not significantly impact

a substantial number of small entities, then a regulatory

flexibility analysis is required to examine the impacts on small

entities and the alternatives to minimize these impacts.

To assist in considering these impacts under the Regulatory

Flexibility Act (RFA), first the NRC adopted size standards for

determining which NRC licensees qualify as small entities (50 FR

50241; December 9, 1985). These size standards were clarified on

November 6, 1991 (56 FR 56672). On April 7, 1994 (59 FR 16513), the

Small Business Administration (SBA) issued a final rule changing its

size standards. The SBA adjusted its receipts-based size standards

levels to mitigate the effects of inflation from 1984 to 1994. On

November 30, 1994 (59 FR 61293), the NRC published a proposed rule

to amend its size standards. After evaluating the two comments

received, a final rule that would revise the NRC's size standards as

proposed was developed and approved by the SBA on March 24, 1995.

The NRC published the final rule revising its size standards on

April 11, 1995 (60 FR 18344). The revised standards became effective

May 11, 1995. The revised standards adjusted the NRC receipts-based

size standards from $3.5 million to $5 million to accommodate

inflation and to conform to the SBA final rule. The NRC also

eliminated the separate $1 million size standard for private

practice physicians and applied a receipts-based size standard of $5

million to this class of licensees. This mirrored the revised SBA

standard of $5 million for medical practitioners. The NRC also

established a size standard of 500 or fewer employees for business

concerns that are manufacturing entities. This standard is the most

commonly used SBA employee standard and is the standard applicable

to the types of manufacturing industries that hold an NRC license.

The NRC used the revised standards in the final FY 1995, FY

1996, and FY 1997 fee rules and is continuing their use in this FY

1998 final rule. The small entity fee categories in Sec. 171.16(c)

of this final rule reflect the changes in the NRC's size standards

adopted in FY 1995. A new maximum small entity fee for manufacturing

industries with 35 to 500 employees was established at $1,800 and a

lower-tier small entity fee of $400 was established for those

manufacturing industries with less than 35 employees. The lower-tier

receipts-based threshold of $250,000 was raised to $350,000 to

reflect approximately the same percentage adjustment as that made by

the SBA when they adjusted the receipts-based standard from $3.5

million to $5 million. The NRC

[[Page 31862]]

believes that continuing these actions for FY 1998 will reduce the

impact of annual fees on small businesses. The NRC size standards

are codified at 10 CFR 2.810.

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

1990 (OBRA-90), required that the NRC recover approximately 100

percent of its budget authority, less appropriations from the

Nuclear Waste Fund, for Fiscal Years (FY) 1991 through 1995 by

assessing license and annual fees. OBRA-90 was amended in 1993 to

extend the 100 percent recovery requirement for NRC through 1998.

For FY 1991, the amount for collection was about $445.3 million; for

FY 1992, about $492.5 million; for FY 1993 about $518.9 million; for

FY 1994 about $513 million; for FY 1995 about $503.6 million; for FY

1996 about $462.3 million; for FY 1997 about $462.3 million; and the

amount to be collected for FY 1998 is approximately $454.8 million.

To comply with OBRA-90, the Commission amended its fee

regulations in 10 CFR Parts 170 and 171 in FY 1991 (56 FR 31472;

July 10, 1991), in FY 1992 (57 FR 32691; July 23, 1992), in FY 1993

(58 FR 38666; July 20, 1993), in FY 1994 (59 FR 36895; July 20,

1994), in FY 1995 (60 FR 32218; June 20, 1995), in FY 1996 (61 FR

16203; April 12, 1996), and in FY 1997 (62 FR 29194; May 29,1997)

based on a careful evaluation of over 1,000 comments. These final

rules established the methodology used by NRC in identifying and

determining the fees assessed and collected in FYs 1991-1997.

The NRC indicated in the FY 1995 final rule that it would

attempt to stabilize annual fees as follows. Beginning in FY 1996,

it would adjust the annual fees only by the percentage change (plus

or minus) in NRC's total budget authority unless there was a

substantial change in the total NRC budget authority or the

magnitude of the budget allocated to a specific class of licensees,

in which case the annual fee base would be recalculated (60 FR

32225; June 20, 1995). The NRC also indicated that the percentage

change would be adjusted based on changes in the 10 CFR Part 170

fees and other adjustments as well as an adjustment for the number

of licensees paying the fees. As a result, the NRC is establishing

the FY 1998 annual fees for all licensees at about 0.1 percent below

the FY 1997 exact (prior to rounding) annual fees. Based on this

small change, the FY 1998 annual fees (rounded) for many fee

categories are the same as the FY 1997 annual fees. Because there

has not been a substantial change in the NRC budget or in the

magnitude of a specific budget allocation to a class of licensees,

the NRC has continued to stabilize annual fees by following the same

method used for FY 1996 and FY 1997 to establish the FY 1998 annual

fees.

Public Law 104-121, the Contract with America Advancement Act of

1996, was signed into law on March 29, 1996. Title III of the law is

entitled the Small Business Regulatory Enforcement Fairness Act of

1996 (SBREFA). The SBREFA has two purposes. The first is to reduce

regulatory burdens imposed by Federal agencies on small businesses,

nonprofit organizations and governmental jurisdictions. The second

is to provide the Congress with the opportunity to review agency

rules before they go into effect. Under this legislation, the NRC

fee rule, published annually, is considered a ``major'' rule and

therefore must be reviewed by Congress and the Comptroller General

before the rule becomes effective. Section 312 of the Act provides

that fo

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