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

SUMMARY: The Nuclear Regulatory Commission (NRC) is proposing to amend

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

and licensees. The proposed amendments are necessary to implement the

Omnibus Budget Reconciliation Act of 1990 (OBRA-90), which mandates

that the NRC recover approximately 100 percent of its budget authority

in Fiscal Year (FY) 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 proposing to provide

additional payment methods for civil penalties and indemnity fees, as

well as annual and licensing fees.

DATES: The comment period expires May 1, 1998. Comments received after

this date will be considered if it is practical to do so, but the NRC

is able to ensure only that comments received on or before this date

will be considered. Because OBRA-90 requires that NRC collect the FY

1998 fees by September 30, 1998, requests for extensions of the comment

period will not be granted.

ADDRESSES: Mail written comments to: Secretary, U.S. Nuclear Regulatory

Commission, Washington, DC 20555-0001, ATTN: Rulemakings and

Adjudications Staff. Hand deliver comments to: 11555 Rockville Pike,

Rockville, Maryland 20852, between 7:30 am and 4:15 pm Federal

workdays. (Telephone 301-415-1678). Comments may also be submitted via

the NRC's interactive rulemaking website through the NRC home page

(http://www.nrc.gov). From the NRC homepage, select ``Rulemaking'' from

the tool bar. The interactive rulemaking website can then be accessed

by selecting ``New Rulemaking Website''. This site provides the

availability to upload comments as files (any format), if your web

browser supports that function. For information about the interactive

rulemaking site, contact Ms. Carol Gallagher, 301-415-5905; e-mail

[email protected]

Copies of comments received and the agency workpapers that support

these proposed changes to 10 CFR Parts 170 and 171 may be examined at

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

Washington, DC 20555-0001. Comments received may also be viewed and

downloaded electronically via the interactive rulemaking website

established by the NRC for this rulemaking.

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. Proposed Action.

III. Section-by-Section Analysis.

IV. Environmental Impact: Categorical Exclusion.

V. Paperwork Reduction Act Statement.

VI. Regulatory Analysis.

VII. Regulatory Flexibility Analysis.

VIII. Backfit Analysis.

I. Background

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

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

approximately 100 percent of its budget authority, less the amount

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

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

extend the NRC's 100 percent fee recovery requirement through 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 12, 1996 (61 FR 16203), the NRC published its final rule

establishing the licensing, inspection, and annual fees necessary for

the NRC to recover approximately 100 percent of its budget authority

for FY 1996, less the appropriation received from the Nuclear Waste

Fund. Several changes to the fees assessed for FY 1996 were adopted by

the NRC. These changes were highlighted in this final rule (61 FR

16203; April 12, 1996) and bear on the approach for establishing annual

fees set forth in this proposed rule.

II. Proposed Action

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

fees to recover approximately 100 percent of its FY 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

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

The total amount to be recovered through annual fees in FY 1998 is

approximately $6.4 million less than in FY 1997.

In addition to the decrease in the total 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 has notified the NRC that the Zion Station Units 1

and 2 ceased operations on February 13, 1998. 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 2.5 power

[[Page 16047]]

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.

As a result of these changes, the proposed FY 1998 annual fees

would increase slightly, by 0.1 percent, compared to the FY 1997 actual

(prior to rounding) annual fees. Because this is a slight increase,

after rounding the proposed 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 1998

FY 1997 proposed

annual fee annual fee

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

Class of Licensees:

Power Reactors...................... $2,978,000 $2,980,000

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

High Enriched Uranium Fuel Facility. 2,606,000 2,607,000

Low Enriched Uranium Fuel Facility.. 1,279,000 1,280,000

UF6 Conversion Facility............. 648,000 649,000

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

Typical Materials Licenses:

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

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 would 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 would 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 would 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 final rule would be billed at

the FY 1998 revised rates during the anniversary month of the license

and payment would be due on the date of the invoice.

The NRC is announcing here that it plans to discontinue mailing the

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

Register, the final rule will be 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 to send the proposed rule to all licensees.

The NRC is also announcing here that it plans to reexamine the

current annual fee exemption policy for licensees in decommissioning or

holding possession only licenses and the annual fee policy for

reactors' storage of spent fuel. Any changes to the current fee

policies 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 in decommissioning who store spent fuel

in the 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 in decommissioning.

The NRC is also proposing to make other changes to 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

The NRC proposes four amendments to 10 CFR Part 170. These

amendments would not change the underlying basis for the regulation--

that fees be assessed to applicants, persons, and licensees for

specific identifiable services rendered. The amendments also comply

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

fees assessed under the Independent Offices Appropriation Act (IOAA)

recover the full cost to the NRC of identifiable regulatory services

that each applicant or licensee receives.

First, the NRC proposes to revise Sec. 170.12(g) to include the

following for cost recovery:

(1) Full-cost recovery for resident inspectors.

Currently, resident inspectors' time is billed to the site to which

they are assigned only if the time is reported to a specific inspection

report number. The remaining costs related to the resident inspector

are recovered in the annual fees assessed to all licensees in the

class. Because the assignment of a resident inspector to a site is an

identifiable service to a specific licensee, the NRC is proposing that

all of the resident inspectors' official duty time (i.e., excluding

leave) be billed to the specific licensee under Part 170. This change

would be applicable to all classes of licensees having resident

inspectors.

(2) Costs expended within 30 days after the issuance of an

inspection report.

Section 170.12 (g) provides that costs will be assessed for

completed inspections. Currently, for fee recovery purposes, an

inspection is considered to be completed when the inspection report is

issued. The result is that costs expended after the report is sent are

recovered through the annual fees imposed on all licensees in that

class.

Activities that occur after the inspection report is issued, such

as follow-up on the inspection findings, are identifiable services for

specific licensees. Therefore, NRC proposes to assess Part 170 fees for

these services.

[[Page 16048]]

However, in order to establish a clear interval during which

accumulated costs would be billed, the proposed change to Part 170

would recover costs from the specific licensee for activities that

occur within 30 days after the issuance of the inspection report. This

change would result in recovery of 80 percent of these accumulated

costs under Part 170, and would continue to provide applicants and

licensees with a definitive point at which billing would cease.

Second, the NRC proposes to revise 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 would be

accepted for small dollar payments. 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 NRC proposes that the two professional hourly rates

established in FY 1997 in Sec. 170.20 be revised based on the FY 1998

budget. These proposed rates would be based on the FY 1998 direct FTEs

and the FY 1998 budget excluding direct program support and the

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

determine the Part 170 fees. The NRC is proposing to establish a rate

of $124 per hour ($219,901 per direct FTE) for the reactor program.

This rate would be 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 proposed for the

nuclear materials and nuclear waste program. This rate would be

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 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 proposed 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 proposed 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 proposes to adjust the current Part 170 licensing

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

In summary, the NRC is proposing to:

(1) Assess Part 170 fees to recover costs for all of the resident

inspectors' official duty time (i.e, excluding leave) and costs

incurred within 30 days after issuance of an inspection report.

(2) Offer additional payment methods for 10 CFR Part 170 fees.

(3) Revise the two 10 CFR Part 170 hourly rates.

(4) Revise the licensing (application and amendment) fees assessed

under 10 CFR Part 170 to reflect the revised hourly rates.

Although not a specific change to Part 170, the NRC also is

announcing plans to change the current policy with regard to fees for

activities performed during overtime. Currently only work performed

during regular hours is billed to the applicants and licensees. To more

fully recover costs under Part 170, the NRC plans to 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.

In addition, the NRC is also announcing plans to bill for

accumulated inspection costs prior to issuance of the inspection report

under certain circumstances. Currently, as provided in 10 CFR

170.12(g), inspection costs are billed only after the inspection is

completed, i.e, when the inspection report is issued. As a result, in

some cases inspection costs accumulate over several billing cycles, and

the licensee receives one invoice for these accumulated costs rather

than being billed as the costs are expended. However, 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 is seeking early comment on the long-term policy

in this FY 1998 proposed rule. The necessary revision to 10 CFR 170

would 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

The NRC proposes four amendments to 10 CFR Part 171.

First, the NRC proposes to amend Sec. 171.13 to delete specific

fiscal year references.

Second, the NRC proposes to amend 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 (60 FR 32225; June 20, 1995). The NRC also indicated that

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

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

paying the fees.

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

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

percent below the FY 1995 annual fees. 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

[[Page 16049]]

fees, a reduction in the amount of the budget recovered for 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 intends to

continue to stabilize annual fees by following 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. Due largely to the

adjustment for the reduced number of licensees paying annual fees, the

10 CFR Part 171 annual fees must increase slightly in FY 1998 compared

to FY 1997 in order to recover 100 percent of the budget. The reduced

number of licensees paying annual fees is primarily the result of the

equivalent of 2.5 fewer power reactors subject to annual fees in FY

1998. In addition, for FY 1998 there is 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 FY 1998 annual fees for all licensees would be established at a

level of 0.1 percent above the FY 1997 actual (prior to rounding)

annual fees. The NRC notes that this increase is less than the 2.7

percent inflation factor used by the Office of Management and Budget

for the FY 1998 budget. 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 proposed 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]

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

FY97 FY98

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

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............................. ......... .........

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

Part 171 Billing Adjustment1:

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

Unpaid FY 1997 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

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

1These 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) would be 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 called 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 the fiscal

year 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 would be 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) would also be amended to

provide credit cards as an additional method of payment, and to provide

additional information on electronic payments. Credit card payments

would be accepted for small dollar payments. 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 upon 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 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 would be billed, at

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

and payment would be due on the date of the invoice.

The proposed amendments to 10 CFR Part 171 do not change the

underlying basis for 10 CFR Part 171; that is, charging a class of

licensees for NRC costs attributable to that class of licensees. The

proposed changes are consistent with the NRC's FY 1995 final rule

indicating that, for the period FY 1996-1999, the expectation is that

annual fees would be adjusted by the percentage change (plus or minus)

to the NRC's budget authority adjusted for NRC offsetting receipts and

the number of licensees paying annual fees.

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

is proposing conforming amendments to 10 CFR Parts 2 and 140 to include

the additional methods of payments provided in 10 CFR Parts 170 and

171.

[[Page 16050]]

III. Section-by-Section Analysis

The following analysis of those sections that would be amended by

this proposed rule provides additional explanatory information. All

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

Regulations.

Part 2

Section 2.205 Civil Penalties

Paragraph 2.205(i) would be revised 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) would be revised to delete references to

payment instructions. A new paragraph (d) would be 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) would be revised to indicate that costs incurred

within 30 days after the inspection report is issued will be billed to

the specific licensees, and that inspection fees will be assessed for

each assigned resident inspector based on the number of hours the

assigned resident inspector(s) is in an official duty status (i.e.,

excluding leave).

Paragraph (h) would be revised to provide additional methods of

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

should be made in U.S. funds.

Section 170.20 Average Cost per Professional Staff-Hour

This section would be amended to establish two professional staff-

hour rates based on FY 1998 budgeted costs--one for the reactor program

and one for the nuclear material and nuclear waste program.

Accordingly, the NRC reactor direct staff-hour rate for FY 1998 for all

activities whose fees are based on full cost under Sec. 170.21 would be

$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 would be $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 would be $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 would be $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 proposed 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

[[Page 16051]]

paying Part 171 annual fees. The proposed 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 proposing to revise 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, would be 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, would be 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 would be based on both the professional hourly rate as

shown in Sec. 170.20 for the materials program and any direct program

support (contractual services) costs expended by the NRC. Licensing

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

would be adjusted to reflect the 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.

The proposed licensing ``flat'' fees are applicable to fee

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

10.B, 15.A through 15.E and 16. Applications filed on or after the

effective date of the final rule would be subject to the revised fees

in this proposed rule.

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

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

contractual services), the proposed materials program hourly rate of

$121, as shown in Sec. 170.20, would apply to those professional staff

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

Part 171

Section 171.13 Notice

The language in this section would be revised to delete specific

fiscal year references.

Section 171.15 Annual Fee: Reactor Operating Licenses

The annual fees in this section would be revised as described

below.

Paragraphs (b), (c)(1), (c)(2), (e) and (f) would be revised to

comply with the requirement of OBRA-90 that the NRC recover

approximately 100 percent of its budget for FY 1998.

Paragraph (b) would be 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 would be established by

increasing 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.

Each operating power reactor would pay an annual fee of $2,980,000

in FY 1998.

Paragraph (e) would be revised to show the amount of the FY 1998

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

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) would be revised to change fiscal year date

references.

Section 171.16 Annual Fees: Materials Licensees, Holders of

Certificates of Compliance, Holders of Sealed Source and Device

Registrations, Holders of Quality Assurance Program Approvals, and

Government Agencies Licensed by the NRC

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

can qualify as small entities under NRC size standards. A materials

licensee may pay a reduced annual fee if the licensee qualifies as a

small entity under the NRC's size standards and certifies that it is a

small entity using NRC Form 526. The 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 proposed 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 proposed rule for convenience.

Section 171.16(d) would be revised to establish the FY 1998 annual

fees for materials licensees, including Government agencies, licensed

by the NRC. The proposed annual fees were determined by increasing the

FY 1997 annual fees (prior to rounding) by 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 proposed 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. $2,607,000

Part 70--Low enriched fuel facility.. $1,280,000

Part 40--UF6 conversion facility..... $649,000

Part 40--Uranium recovery facilities. $22,300 to $61,800

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

Part 71--Transportation of 1,000 to $78,900

Radioactive Material.

[[Page 16052]]

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) would be amended to provide a waiver

of the annual fees for materials licensees, and holders of

certificates, registrations, and approvals, who either filed for

termination of their licenses or approvals or filed for possession

only/storage only licenses before October 1, 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 would be 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 FY will be assessed one-

half the annual fee in effect on the anniversary date of the license.

New materials licenses issued on or after April 1, 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) would be revised to provide additional methods of

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

Paragraph (b) would be 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 would credit payments received

for those quarterly annual fee assessments toward the total annual fee

to be assessed. The NRC would adjust the fourth quarterly invoice to

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

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

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

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

date.

Paragraph (c) would be revised to update fiscal year references.

As in FY 1997, the NRC would 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 proposed rule applies to those materials

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

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

annual fee purposes, the anniversary date of the materials license is

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

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

license was issued on June 17 then, for annual fee purposes, the

anniversary date of the materials license is June 1 and the licensee

would continue to be billed in June of each year for the annual fee in

effect on June 1. Materials licensees with anniversary dates in FY 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 would be billed, at the FY 1998 revised rates,

during the anniversary month of their license and payment would 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).

IV. Environmental Impact: Categorical Exclusion

The NRC has determined that this proposed rule is the type of

action described in categorical exclusion 10 CFR 51.22(c)(1).

Therefore, neither an environmental impact statement nor an

environmental impact assessment has been prepared for the proposed

regulation. By its very nature, this regulatory action does not affect

the environment, and therefore, no environmental justice issues are

raised.

V. Paperwork Reduction Act Statement

This proposed rule contains no information collection requirements

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

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

VI. Regulatory Analysis

With respect to 10 CFR Part 170, this proposed rule was developed

pursuant to Title V of the Independent Offices Appropriation Act of

1952 (IOAA) (31 U.S.C. 9701) and the Commission's fee guidelines. When

developing these guidelines the Commission took into account guidance

provided by the U.S. Supreme Court on March 4, 1974, in its decision of

National Cable Television Association, Inc. v. United States, 415 U.S.

36 (1974) and Federal Power Commission v. New England Power Company,

415 U.S. 345 (1974). In these decisions, the Court held that the IOAA

authorizes an agency to charge fees for special benefits rendered to

identifiable persons measured by the ``value to the recipient'' of the

agency service. The meaning of the IOAA was further clarified on

December 16, 1976, by four decisions of the U.S. Court of Appeals for

the District of Columbia: National Cable Television Association v.

Federal Communications Commission, 554 F.2d 1094 (D.C. Cir. 1976);

National Association of Broadcasters v. Federal Communications

Commission, 554 F.2d 1118 (D.C. Cir. 1976); Electronic Industries

Association v. Federal Communications Commission, 554 F.2d 1109 (D.C.

Cir. 1976) and Capital Cities Communication, Inc. v. Federal

Communications Commission, 554 F.2d 1135 (D.C. Cir. 1976). These

decisions of the Courts enabled the Commission to develop fee

guidelines that are still used

[[Page 16053]]

for cost recovery and fee development purposes.

The Commission's fee guidelines were upheld on August 24, 1979, by

the U.S. Court of Appeals for the Fifth Circuit in Mississippi Power

and Light Co. v. U.S. Nuclear Regulatory Commission, 601 F.2d 223 (5th

Cir. 1979), cert. denied, 444 U.S. 1102 (1980). The Court held that--

(1) The NRC had the authority to recover the full cost of providing

services to identifiable beneficiaries;

(2) The NRC could properly assess a fee for the costs of providing

routine inspections necessary to ensure a licensee's compliance with

the Atomic Energy Act and with applicable regulations;

(3) The NRC could charge for costs incurred in conducting

environmental reviews required by NEPA;

(4) The NRC properly included the costs of uncontested hearings and

of administrative and technical support services in the fee schedule;

(5) The NRC could assess a fee for renewing a license to operate a

low-level radioactive waste burial site; and

(6) The NRC's fees were not arbitrary or capricious.

With respect to 10 CFR Part 171, on November 5, 1990, the Congress

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

1990 (OBRA-90) which required that for FYs 1991 through 1995,

approximately 100 percent of the NRC budget authority be recovered

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

the 100 percent fee recovery requirement for NRC through FY 1998. To

accomplish this statutory requirement, the NRC, in accordance with

Sec. 171.13, is publishing the proposed 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 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).

VII. Regulatory Flexibility Analysis

The NRC is required by the Omnibus Budget Reconciliation Act of

1990 to recover approximately 100 percent of its budget authority

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

NRC establish a schedule of charges that fairly and equitably allocates

the aggregate amount of these charges among licensees.

This proposed rule establishes the schedules of fees that are

necessary to implement the Congressional mandate for FY 1998. The

proposed rule would result a slight increase 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 proposed rule. The

Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) was

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

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

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

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

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

is the small entity compliance guide for FY 1998.

VIII. Backfit Analysis

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

not apply to this proposed rule and that a backfit analysis is not

required for this proposed rule. The backfit analysis is not required

because these proposed amendments do not require the modification of or

additions to systems, structures, components, or the design of a

facility or the design approval or manufacturing license for a facility

or the procedures or organization required to design, construct or

operate a facility.

List of Subjects

10 CFR Part 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, Reporting and record keeping 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. 553, the NRC is

proposing to adopt 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

[[Page 16054]]

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). Appendix B also issued under sec. 10, Pub. L. 99-240, 99

Stat. 1842 (42 U.S.C. 2021b et seq.).

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).

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;

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

reactor. This fee is due 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), 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

due 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, 96 Stat. 1051; sec. 301, Pub. L. 92-

314, 86 Stat. 222 (42 U.S.C. 2201w); sec. 201, Pub. L. 93-4381, 88

Stat. 1242, as amended (42 U.S.C. 5841); sec. 205, Pub. L. 101-576,

104 Stat. 2842 (31 U.S.C. 901).

6. 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 assessed will be based on the number of

hours that each inspector assigned to the plant or facility is in an

offical duty status (i.e., all time in a non-leave status will be

billed), and the hours will be billed at the appropriate hourly rate

established in 10 CFR 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 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 contractural service costs, but exclude

the time involved in the processing and issuance of a notice of

violation or civil penalty. Resident inspector time related to a

specific inspection will be assessed in accordance with paragraph

(g)(1) of this section, and will not be reflected in the costs billed

for the specific inspection.

(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. License fee payments, made payable to the

U.S. Nuclear Regulatory Commission, are to

[[Page 16055]]

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). Where specific payment instructions

are provided on the invoices to applicants and licensees for services

rendered, payment should be made accordingly, e.g. invoice 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. Unbilled application and amendment fees are

to be paid in a similar manner using the above methods. 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, and footnotes

1 and 2 to the table are revised to read as follows:

Sec. 170.21 Schedule of fees for production and utilization

facilities, review of standard referenced design approvals, special

projects, inspections and import and export licenses.

Applicants for construction permits, manufacturing licenses,

operating licenses, import and export licenses, approvals of facility

standard reference designs, requalification and replacement

examinations for reactor operators, and special projects and holders of

construction permits, licenses, and other approvals shall pay fees for

the following categories of services.

Schedule of Facility Fees

[See footnotes at end of table]

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

Facility categories and type of fees Fees12

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

* * * *

* * *

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.

[[Page 16056]]

* * * * *

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\ Fee23

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

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.

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 10 CFR

170.11(a)(4). These licenses are covered

by fee Category 3D:

Application--New license............... $6,800.

Amendment.............................. $630.

[[Page 16057]]

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 10 CFR 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.

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:

[[Page 16058]]

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:

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.

[[Page 16059]]

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 10 CFR Parts 30, 40, 70, and 72 of

this chapter:

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

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

15. Import and Export licenses:

Licenses issued pursuant to 10 CFR Part 110

of this chapter for the import and export

only of special nuclear material, source

material, tritium and other byproduct

material, heavy water, or nuclear grade

graphite.

A. Application for export or import of

high enriched uranium and other

materials, including radioactive

waste, which must be reviewed by the

Commissioners and the Executive

Branch, for example, those actions

under 10 CFR 110.40(b). This category

includes application for export or

import of radioactive wastes in

multiple forms from multiple

generators or brokers in the exporting

country and/or going to multiple

treatment, storage or disposal

facilities in one or more receiving

countries:

Application-new license $7,900.

Amendment $7,900.

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.

[[Page 16060]]

(1) Applications for amendments to licenses and approvals and revisions

to reciprocity initial applications, except those subject to fees

assessed at full costs, must be accompanied by the prescribed

amendment/revision fee for each license/revision affected. An

application for an amendment to a license or approval classified in

more than one fee category must be accompanied by the prescribed

amendment fee for the category affected by the amendment unless the

amendment is applicable to two or more fee categories in which case

the amendment fee for the highest fee category would apply. For those

licenses and approvals subject to full costs (fee Categories 1A, 1B,

1E, 2A, 4A, 5B, 10A, 11, 12, 13A, and 14), amendment fees are due upon

notification by the Commission in accordance with Sec. 170.12(c).

(2) An application for amendment to a materials license or approval that

would place the license or approval in a higher fee category or add a

new fee category must be accompanied by the prescribed application fee

for the new category.

(3) An application for amendment to a license or approval that would

reduce the scope of a licensee's program to a lower fee category must

be accompanied by the prescribed amendment fee for the lower fee

category.

(4) Applications to terminate licenses authorizing small materials

programs, when no dismantling or decontamination procedure is

required, are not subject to fees.

(e) Inspection fees. Inspections resulting from investigations conducted

by the Office of Investigations and nonroutine inspections that result

from third-party allegations are not subject to fees. The fees

assessed at full cost will be determined based on the professional

staff time required to conduct the inspection multiplied by the rate

established under Sec. 170.20 plus any applicable contractual support

services costs incurred. Inspection fees are due upon notification by

the Commission in accordance with Sec. 170.12(g).

\2\Fees will not be charged for orders issued by the Commission pursuant

to 10 CFR 2.202 or for amendments resulting specifically from the

requirements of these types of Commission orders. However, fees will

be charged for approvals issued under a specific exemption provision

of the Commission's regulations under Title 10 of the Code of Federal

Regulations (e.g., 10 CFR 30.11, 40.14, 70.14, 73.5, and any other

sections now or hereafter in effect) regardless of whether the

approval is in the form of a license amendment, letter of approval,

safety evaluation report, or other form. In addition to the fee shown,

an applicant may be assessed an additional fee for sealed source and

device evaluations as shown in Categories 9A through 9D.

\3\Full cost fees will be determined based on the professional staff

time and appropriate contractual support services expended. For those

applications currently on file and for which fees are determined based

on the full cost expended for the review, the professional staff hours

expended for the review of the application up to the effective date of

the final rule will be determined at the professional rates in effect

at the time the service was provided. For applications currently on

file for which review costs have reached an applicable fee ceiling

established by the June 20, 1984, and July 2, 1990, rules, but are

still pending completion of the review, the cost incurred after any

applicable ceiling was reached through January 29, 1989, will not be

billed to the applicant. Any professional staff-hours expended above

those ceilings on or after January 30, 1989, will be assessed at the

applicable rates established by Sec. 170.20, as appropriate, except

for topical reports whose costs exceed $50,000. Costs which exceed

$50,000 for each topical report, amendment, revision, or supplement to

a topical report completed or under review from January 30, 1989,

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

professional hours expended on or after August 9, 1991, will be

assessed at the applicable rate established in Sec. 170.20. The

minimum total review cost is twice the hourly rate shown in Sec.

170.20.

\4\Licensees paying fees under Categories 1A, 1B, and 1E are not subject

to fees under Categories 1C and 1D for sealed sources authorized in

the same license except in those instances in which an application

deals only with the sealed sources authorized by the license.

Applicants for new licenses that cover both byproduct material and

special nuclear material in sealed sources for use in gauging devices

will pay the appropriate application fee for Category 1C only.

\5\Fees will not be assessed for requests/reports submitted to the NRC:

(a) In response to a Generic Letter or NRC Bulletin that does not result

in an amendment to the license, does not result in the review of an

alternate method or reanalysis to meet the requirements of the Generic

Letter, or does not involve an unreviewed safety issue;

(b) In response to an NRC request (at the Associate Office Director

level or above) to resolve an identified safety, 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 THE 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. 171.17 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 of the regulations until a notice

concerning the revised amount of the fees for the fiscal year is

published by the NRC. If the NRC is unable to publish a final fee rule

that becomes effective during the current fiscal year, then fees would

be assessed based on the rates in effect for the previous fiscal year.

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 $2,980,000. This fee has

been determined by adjusting the FY 1997 annual fee, (prior to

rounding) upward 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 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 10 CFR Part 170 of this

chapter.

(2) Research activities directly related to the regulation of power

reactors.

(3) Generic activities required largely for NRC to regulate power

reactors, e.g., updating Part 50 of this chapter, or operating the

Incident Response Center.

(c) The activities comprising the FY 1995 surcharge are as follows:

[[Page 16061]]

(1) Activities not attributable to an existing NRC licensee or

class of licensees; e.g., reviews submitted by other government

agencies (e.g., DOE) that do not result in a license or are not

associated with a license; international cooperative safety program and

international safeguards activities; low-level waste disposal generic

activities; uranium enrichment generic activities; and

(2) Activities not currently assessed under 10 CFR Part 170

licensing and inspection fees based on existing Commission policy,

e.g., reviews and inspections conducted of nonprofit educational

institutions, and costs that would not be collected from small entities

based on Commission policy in accordance with the Regulatory

Flexibility Act.

* * * * *

(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 of paragraph (c) and

paragraphs (c)(1), (c)(4), (d), and (e) are revised to read as follows:

Sec. 171.16 Annual Fees: Materials Licensees, Holders of Certificates

of Compliance, Holders of Sealed Source and Device Registrations,

Holders of Quality Assurance Program Approvals and Government Agencies

Licensed by the NRC.

* * * * *

(c) A licensee who is required to pay an annual fee under this

section may qualify as a small entity. If a licensee qualifies as a

small entity and provides the Commission with the proper certification,

the licensee may pay reduced annual fees for FY 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):

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

upward the FY 1997 exact annual fees (prior to rounding), by 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]

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

Category of materials licenses Annual fees123

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

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..................... $2,607,000

Nuclear Fuel Services SNM-124............... 2,607,000

(b) Low Enriched Uranium in Dispersible Form

Used for Fabrication of Power Reactor Fuel:

Combustion Engineering (Hematite) SNM-33.... 1,280,000

General Electric Company SNM-1097........... 1,280,000

Siemens Nuclear Power SNM-1227.............. 1,280,000

Westinghouse Electric Company SNM-1107...... 1,280,000

(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................... 509,000

(b) All Others:

General Electric SNM-960.................... 346,000

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

[[Page 16062]]

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........................ 2,607,000

2. Source material:

A.(1) Licenses for possession and use of source

material for refining uranium mill concentrates to

uranium hexafluoride............................... 649,000

(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\....................... 61,800

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) or Category 2.A.(4).................... 45,400

(4) Licenses that authorize the receipt of

byproduct material, as defined in Section

11e.(2) of the Atomic Energy Act, from other

persons for possession and disposal incidental

to the disposal of the uranium waste tailings

generated by the licensee's milling operations,

except those licenses subject to the fees in

Category 2.A.(2)............................... 8,000

B. Licenses which authorize only the possession, use

and/or installation of source material for

shielding.......................................... 490

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

3. Byproduct material:

A. Licenses of broad scope for possession and use of

byproduct material issued pursuant to Parts 30 and

33 of this chapter for processing or manufacturing

of items containing byproduct material for

commercial distribution............................ 16,700

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 10 CFR 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

10 CFR 171.11(a)(1). This category also includes

the possession and use of source material for

shielding authorized pursuant to Part 40 of this

chapter when included on the same license.......... 4,400

E. Licenses for possession and use of byproduct

material in sealed sources for irradiation of

materials in which the source is not removed from

its shield (self-shielded units)................... 3,200

F. Licenses for possession and use of less than

10,000 curies of byproduct material in sealed

sources for irradiation of materials in which the

source is exposed for irradiation purposes. This

category also includes underwater irradiators for

irradiation of materials in which the source is not

exposed for irradiation purposes................... 3,800

G. Licenses for possession and use of 10,000 curies

or more of byproduct material in sealed sources for

irradiation of materials in which the source is

exposed for irradiation purposes. This category

also includes underwater irradiators for

irradiation of materials in which the source is not

exposed for irradiation purposes................... 19,700

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 terms 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............. 3,300

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:

[[Page 16063]]

(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....................................... 14,100

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

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\NA

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

B. Approvals issued of 10 CFR Part 71 quality

assurance programs:

Users and Fabricators........................... 78,900

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 \6\N/A

17. Master materials licenses of broadscope issued to

Government agencies 421,000

18. Department of Energy:

A. Certificates of Compliance....................... \10\1,169,000

[[Page 16064]]

B. Uranium Mill Tailing Radiation Control Act

(UMTRCA) activities................................ 1,966,000

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

\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 licenses and holders of certificates, registrations,

and approvals who either filed for termination of their licenses or

approvals or filed for possession only/storage licenses prior to

October 1, 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 have been issued by NRC for land disposal of special

nuclear material. Once NRC issues a LLW disposal license for byproduct

and source material, the Commission will consider establishing an

annual fee for this type of license.

\6\Standardized spent fuel facilities, 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.

\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) FY 1998, annual fees in the amount of $100,000 or more and

described in the Federal Register notice pursuant to Sec. 171.13 must

be paid in quarterly installments of 25 percent as billed by the NRC.

The quarters begin on October 1, January 1, April 1, and July 1 of each

fiscal year.

(d) For FY 1998, annual fees of less than $100,000 must be paid as

billed by the NRC. As established in FY 1996, materials license annual

fees that are less than $100,000 are billed on the anniversary 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.

[[Page 16065]]

Dated at Rockville, Maryland, this 24th day of March, 1998.

For the Nuclear Regulatory Commission.

Jesse L. Funches,

Chief Financial Officer.

Appendix A to This Proposed Rule--Regulatory Flexibility Analysis for

the Amendments to 10 CFR Part 170 (License Fees) and 10 CFR Part 171

(Annual Fees)

I. Background

The Regulatory Flexibility Act of 1980, as amended, (5 U.S.C.

601 et seq.) establishes as a principle of regulatory practice that

agencies endeavor to fit regulatory and informational requirements,

consistent with applicable statutes, to a scale commensurate with

the businesses, organizations, and government jurisdictions to which

they apply. To achieve this principle, the Act requires that

agencies consider the impact of their actions on small entities. If

the agency cannot certify that a rule will not significantly impact

a substantial number of small entities, then a regulatory

flexibility analysis is required to examine the impacts on small

entities and the alternatives to minimize these impacts.

To assist in considering these impacts under the Regulatory

Flexibility Act (RFA), first the NRC adopted size standards for

determining which NRC licensees qualify as small entities (50 FR

50241; December 9, 1985). These size standards were clarified

November 6, 1991 (56 FR 56672). On April 7, 1994 (59 FR 16513), the

Small Business Administration (SBA) issued a final rule changing its

size standards. The SBA adjusted its receipts-based size standards

levels to mitigate the effects of inflation from 1984 to 1994. On

November 30, 1994 (59 FR 61293), the NRC published a proposed rule

to amend its size standards. After evaluating the two comments

received, a final rule that would revise the NRC's size standards as

proposed was developed and approved by the SBA on March 24, 1995.

The NRC published the final rule revising its size standards on

April 11, 1995 (60 FR 18344). The revised standards became effective

May 11, 1995. The revised standards adjusted the NRC receipts-based

size standards from $3.5 million to $5 million to accommodate

inflation and to conform to the SBA final rule. The NRC also

eliminated the separate $1 million size standard for private

practice physicians and applied a receipts-based size standard of $5

million to this class of licensees. This mirrored the revised SBA

standard of $5 million for medical practitioners. The NRC also

established a size standard of 500 or fewer employees for business

concerns that are manufacturing entities. This standard is the most

commonly used SBA employee standard and is the standard applicable

to the types of manufacturing industries that hold an NRC license.

The NRC used the revised standards in the final FY 1995, FY 1996

and FY 1997 fee rules and is continuing their use in this FY 1998

proposed rule. The small entity fee categories in Sec. 171.16(c) of

this proposed rule reflect the changes in the NRC's size standards

adopted in FY 1995. A new maximum small entity fee for manufacturing

industries with 35 to 500 employees was established at $1,800 and a

lower-tier small entity fee of $400 was established for those

manufacturing industries with less than 35 employees. The lower-tier

receipts-based threshold of $250,000 was raised to $350,000 to

reflect approximately the same percentage adjustment as that made by

the SBA when they adjusted the receipts-based standard from $3.5

million to $5 million. The NRC believes that 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), requires that the NRC recover approximately 100

percent of its budget authority, less appropriations from the

Nuclear Waste Fund, for Fiscal Years (FY) 1991 through 1995 by

assessing license and annual fees. OBRA-90 was amended in 1993 to

extend the 100 percent recovery requirement for NRC through 1998.

For FY 1991, the amount for collection was 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 proposing to

establish the FY 1998 annual fees for all licensees at 0.1 percent

above the FY 1997 exact (prior to rounding) annual fees. Based on

this small change, the proposed FY 1998 annual fee (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 intends to continue 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 for each rule for which an agency prepared a final regulatory

flexibility analysis, the agency shall prepare a guide to assist

small entities in complying with the rule. The NRC's guide is

Attachment 1 to Appendix A of this proposed rule. A regulatory

flexibility analysis is prepared for the proposed and final NRC fee

rules as implemented by 10 CFR Part 170 and 171 of the Commission's

regulations. Therefore, in compliance with the law, Attachment 1 to

this Regulatory Flexibility Analysis is the small entity compliance

guide for FY 1998.

II. Impact on Small Entities

The comments received on the proposed FY 1991-1997 fee rule

revisions and the small entity certifications received in response

to the final FY 1991-1997 fee rules indicate that NRC licensees

qualifying as small entities under the NRC's size standards are

primarily those licensed under the NRC's materials program.

Therefore, this analysis will focus on the economic impact of the

annual fees on materials licensees.

The Commission's fee regulations result in substantial fees

being charged to those individuals, organizations, and companies

that are licensed under the NRC materials program. Of these

materials licensees, about 20 percent (approximately 1,400

licensees) have requested small entity certification in the past. In

FY 1993, the NRC conducted a survey of its materials licensees. The

results of this survey indicated that about 25 percent of these

licensees could qualify as small entities under the current NRC size

standards.

The commenters on the FY 1991-1994 proposed fee rules indicated

the following results if the proposed annual fees were not modified:

--Large firms would gain an unfair competitive advantage over small

entities. One commenter noted that a small well-logging company (a

``Mom and Pop'' type of operation) would find it difficult to absorb

the annual fee, while a large corporation would find it easier.

Another commenter noted that the fee increase could be more easily

absorbed by a high-volume nuclear medicine clinic. A gauge licensee

noted that, in the very competitive soils testing market, the annual

fees would put it at an extreme disadvantage with its much larger

competitors because the proposed fees would be the same for a two-

[[Page 16066]]

person licensee as for a large firm with thousands of employees.

--Some firms would be forced to cancel their licenses. One

commenter, with receipts of less than $500,000 per year, stated that

the proposed rule would, in effect, force it to relinquish its soil

density gauge and license, thereby reducing its ability to do its

work effectively. Another commenter noted that the rule would force

the company and many other small businesses to get rid of the

materials license altogether. Commenters stated that the proposed

rule would result in about 10 percent of the well-logging licensees

terminating their licenses immediately and approximately 25 percent

terminating their licenses before the next annual assessment.

--Some companies would go out of business. One commenter noted that

the proposal would put it, and several other small companies, out of

business or, at the very least, make it hard to survive.

--Some companies would have budget problems. Many medical licensees

commented that, in these times of slashed reimbursements, the

proposed increase of the existing fees and the introduction of

additional fees would significantly affect their budgets. Another

noted that, in view of the cuts by Medicare and other third party

carriers, the fees would produce a hardship and some facilities

would experience a great deal of difficulty in meeting this

additional burden.

Since FY 1991 when annual fees were first established,

approximately 3,000 license, approval, and registration terminations

have been requested. Although some of these terminations were

requested because the license was no longer needed or licenses or

registrations could be combined, indications are that other

termination requests were due to the economic impact of the fees.

The NRC continues to receive written and oral comments from

small materials licensees. These commenters previously indicated

that the $3.5 million threshold for small entities was not

representative of small businesses with gross receipts in the

thousands of dollars. These commenters believe that the $1,800

maximum annual fee represents a relatively high percentage of gross

annual receipts for these ``Mom and Pop'' type businesses.

Therefore, even the reduced annual fee could have a significant

impact on the ability of these types of businesses to continue to

operate.

To alleviate the continuing significant impact of the annual

fees on a substantial number of small entities, the NRC considered

alternatives, in accordance with the RFA. These alternatives were

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

FY 1992 rule (57 FR 32691; July 23, 1992), in the FY 1993 rule (58

FR 38666; July 20, 1993), in the FY 1994 rule (59 FR 36895; July 20,

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

1996 rule (61 FR 16203; April 12, 1996), and in the FY 1997 rule (62

FR 29194; May 29, 1997). The alternatives considered by the NRC can

be summarized as follows.

--Base fees on some measure of the amount of radioactivity possessed

by the licensee (e.g., number of sources).

--Base fees on the frequency of use of the licensed radioactive

material (e.g., volume of patients).

--Base fees on the NRC size standards for small entities.

The NRC has reexamined the FY 1991-1997 evaluations of these

alternatives. Based on that reexamination, the NRC continues to

believe that establishment of a maximum fee for small entities is

the most appropriate option to reduce the impact on small entities.

The NRC established, and will continue for FY 1998, a maximum

annual fee for small entities. The RFA and its implementing guidance

do not provide specific guidelines on what constitutes a significant

economic impact on a small entity. Therefore, the NRC has no

benchmark to assist it in determining the amount or the percent of

gross receipts that should be charged to a small entity. For FY

1998, the NRC will rely on the analysis previously completed that

established a maximum annual fee for a small entity and the amount

of costs that must be recovered from other NRC licensees as a result

of establishing the maximum annual fees.

The NRC continues to believe that the 10 CFR Part 170 license

fees (application and amendment), or any adjustments to these

licensing fees during the past year, do not have a significant

impact on small entities. In issuing this proposed rule for FY 1998,

the NRC concludes that the 10 CFR Part 170 materials license fees do

not have a significant impact on a substantial number of small

entities and that the 10 CFR Part 171 maximum annual small entity

fee of $1,800 be continued.

By maintaining the maximum annual fee for small entities at

$1,800, the annual fee for many small entities is reduced while at

the same time materials licensees, including small entities, pay for

most of the FY 1998 costs attributable to them. The costs not

recovered from small entities are allocated to other materials

licensees and to operating power reactors. However, the amount that

must be recovered from other licensees as a result of maintaining

the maximum annual fee is not expected to increase significantly.

Therefore, the NRC is continuing, for FY 1998, the maximum annual

fee (base annual fee plus surcharge) for certain small entities at

$1,800 for each fee category covered by each license issued to a

small entity.

While reducing the impact on many small entities, the Commission

agrees that the maximum annual fee of $1,800 for small entities,

when added to the Part 170 license fees, may continue to have a

significant impact on materials licensees with annual gross receipts

in the thousands of dollars. Therefore, as in FY 1992-1997, the NRC

is continuing the lower-tier small entity annual fee of $400 for

small entities with relatively low gross annual receipts. The lower-

tier small entity fee of $400 also applies to manufacturing

concerns, and educational institutions not State or publicly

supported, with less than 35 employees. This lower-tier small entity

fee was first established in the final rule published in the Federal

Register on April 17, 1992 (57 FR 13625) and now includes

manufacturing companies with a relatively small number of employees.

III. Summary

The NRC has determined the 10 CFR Part 171 annual fees

significantly impact a substantial number of small entities. A

maximum fee for small entities strikes a balance between the

requirement to collect 100 percent of the NRC budget and the

requirement to consider means of reducing the impact of the fee on

small entities. On the basis of its regulatory flexibility analyses,

the NRC concludes that a maximum annual fee of $1,800 for small

entities and a lower-tier small entity annual fee of $400 for small

businesses and not-for-profit organizations with gross annual

receipts of less than $350,000, small governmental jurisdictions

with a population of less than 20,000, small manufacturing entities

that have less than 35 employees and educational institutions that

are not State or publicly supported and have less than 35 employees

reduces the impact on small entities. At the same time, these

reduced annual fees are consistent with the objectives of OBRA-90.

Thus, the fees for small entities maintain a balance between the

objectives of OBRA-90 and the RFA. Therefore, the analysis and

conclusions established in the FY 1991-1997 rules remain valid for

this proposed rule for FY 1998. In compliance with Public Law 104-

121, a small entity compliance guide has been prepared by NRC and is

shown as Attachment 1 to this Regulatory Flexibility Analysis.

Attachment 1 to Appendix A

U.S. Nuclear Regulatory Commission, Small Entity Compliance Guide,

Fiscal Year 1998

Contents

Introduction

NRC Definition of Small Entity

NRC Small Entity Fees

Instructions for Completing NRC Form 526

Introduction

The Small Business Regulatory Enforcement Fairness Act of 1996

(SBREFA) requires all Federal agencies to prepare a written guide

for each ``major'' final rule as defined by the Act. The NRC's fee

rule, published annually to comply with the Omnibus Budget

Reconciliation Act of 1990 (OBRA-90) which requires the NRC to

collect approximately 100 percent of its budget authority each year

through fees, meets the thresholds for being considered a ``major''

rule under the SBREFA. Therefore, in compliance with the law, this

small entity compliance guide has been prepared for FY 1998. The

purpose of this guide is to assist small entities in complying with

the NRC fee rule.

This guide is designed to aid NRC materials licensees. The

information provided in this guide may be used by licensees to

determine whether they qualify as a small entity under NRC

regulations and are therefore eligible to pay reduced FY 1998 annual

fees assessed under 10 CFR Part 171. The NRC, in compliance with the

Regulatory Flexibility Act of 1980 (RFA), has established separate

annual fees for those materials licensees who meet the NRC's size

standards for small entities. These size standards, developed in

consultation with the Small

[[Page 16067]]

Business Administration, were revised by the NRC and became

effective on May 11, 1995. The small entity size standards are found

at 10 CFR 2.810 of the NRC's regulations. To comply with the RFA,

the NRC has established two tiers of small-entity fees. These fees

are found at 10 CFR 171.16(c) of the NRC's fee regulations.

Licensees who meet NRC's size standards for a small entity must

complete NRC Form 526 in order to qualify for the reduced annual

fee. NRC Form 526 will accompany each annual fee invoice mailed to

materials licensees. The completed form, along with the appropriate

small entity fee and the payment copy of the invoice, should be

mailed to the U.S. Nuclear Regulatory Commission, License Fee and

Accounts Receivable Branch, P.O. Box 954514, St. Louis, MO 63195-

4514.

NRC Definition of Small Entity

The NRC, in consultation with the Small Business Administration,

has defined a small entity for purposes of compliance with its

regulations. The definition is codified in NRC's regulations at 10

CFR 2.810. Under the NRC regulation, a small entity is:

1. Small business--a for-profit concern that provides a service

or a concern not engaged in manufacturing with average gross

receipts of $5 million or less over its last 3 completed fiscal

years;

2. Manufacturing industry--a manufacturing concern with an

average number of 500 or fewer employees based upon employment

during each pay period for the preceding 12 calendar months;

3. Small organization--a not-for-profit organization which is

independently owned and operated and has annual gross receipts of $5

million or less;

4. Small governmental jurisdiction--a government of a city,

county, town, township, village, school district or special district

with a population of less than 50,000;

5. Small educational institution--an educational institution

supported by a qualifying small governmental jurisdiction, or one

that is not state or publicly supported and has 500 or fewer

employees.1

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

\1\An educational institution referred to in the size standards

is an entity whose primary function is education, whose programs are

accredited by a nationally recognized accrediting agency or

association, who is legally authorized to provide a program of

organized instruction or study, who provides an educational program

for which it awards academic degrees, and whose educational programs

are available to the public.

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

NRC Small Entity Fees

The NRC has established two tiers of small-entity fees for

licensees that qualify under the NRC's size standards. Currently,

these fees are as follows:

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

Maximum

annual

fee per

licensed

category

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

Small Business Not Engaged in Manufacturing and Small Not-For

Profit Organizations (Gross Annual Receipts):

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

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

Manufacturing entities that have an average of 500 employees

or less

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

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

Small Governmental Jurisdictions (Including publicly

supported educational institutions) (Population)

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

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

Educational Institutions that are not State or Publicly

Supported, and have 500 Employees or Less

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

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

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

To pay a reduced annual fee, a licensee must use NRC Form 526,

enclosed with the fee invoice, to certify that it meets NRC's size

standards for a small entity. About 1,400 licensees certify each

year that they qualify as a small entity under the NRC size

standards and pay a reduced annual fee. Approximately 800 licensees

pay the small entity fee of $1,800 while 600 licensees pay the

lower-tier, small-entity fee of $400.

Instructions for Completing NRC Form 526

1. File a separate NRC Form 526 for each annual fee invoice

received.

2. Complete all items on NRC Form 526 as follows:

a. The license number and invoice number must be entered exactly

as they appear on the annual fee invoice.

b. The Standard Industrial Classification (SIC) Code should be

entered if it is known.

c. The licensee's name and address must be entered as they

appear on the invoice. Name and/or address changes for billing

purposes must be annotated on the invoice. Correcting the name and/

or address on NRC Form 526 or on the invoice does not constitute a

request to amend the license. Any request to amend a license is to

be submitted to the respective licensing staffs in the NRC Regional

or Headquarters Offices.

d. Check the appropriate size standard under which the licensee

qualifies as a small entity. Check one box only. Note the following:

(1) The size standards apply to the licensee, not the individual

authorized users listed in the license.

(2) Gross annual receipts as used in the size standards includes

all revenue in whatever form received or accrued from whatever

sources, not solely receipts from licensed activities. There are

limited exceptions as set forth at 13 CFR 121.104. These are: the

term receipts excludes net capital gains or losses, taxes collected

for and remitted to a taxing authority if included in gross or total

income, proceeds from the transactions between a concern and its

domestic or foreign affiliates (if also excluded from gross or total

income on a conso

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