Revision of Fee Schedules; Fee Recovery for FY 2001

Note: EPA no longer updates this information, but it may be useful as a reference or resource.

[Federal Register: June 14, 2001 (Volume 66, Number 115)]
[Rules and Regulations]
[Page 32451-32481]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14jn01-18]

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NUCLEAR REGULATORY COMMISSION
10 CFR Parts 150, 170 and 171
RIN 3150-AG73

AGENCY: Nuclear Regulatory Commission.
ACTION: Final rule.

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SUMMARY: The Nuclear Regulatory Commission (NRC) is amending the
licensing, inspection, and annual fees charged to its applicants and
licensees. The amendments are necessary to implement the Omnibus Budget
Reconciliation Act of 1990 (OBRA-90), as amended, which requires that
the NRC recover approximately 98 percent of its budget authority in
fiscal year (FY) 2001, less the amounts appropriated from the Nuclear
Waste Fund (NWF) and the General Fund. The amount to be recovered for
FY 2001 is approximately $453.3 million.

EFFECTIVE DATE: August 13, 2001.

ADDRESSES: The comments received and the agency work papers that
support these final changes to 10 CFR parts 170 and 171 are available
electronically at the NRC's Public Electronic Reading Room on the
Internet at
http://www.nrc.gov/NRC/ADAMS/index.html. From this site, the public can
gain entry into the NRC's Agencywide Documents Access and Management
System (ADAMS), which provides text and image files of NRC's public
documents. For more information, contact the NRC Public Document Room
(PDR) Reference staff at 1-800-397-4209, or 301-415-4737, or by email
to pdr@nrc.gov. If you do not have access to ADAMS or if there are
problems in accessing the documents located in ADAMS, contact the PDR.
Comments received may also be viewed via the NRC's interactive
rulemaking website (http.//ruleforum.llnl.gov). This site provides the
ability 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
CAG@nrc.gov.
For a period of 90 days after the effective date of this final
rule, the work papers may also be examined at the NRC Public Document
Room, Room O-1F22, One White Flint North, 11555 Rockville Pike,
Rockville, MD 20852-2738.

FOR FURTHER INFORMATION CONTACT: Glenda Jackson, Office of the Chief
Financial Officer, U.S. Nuclear Regulatory Commission, Washington, DC
20555-0001; Telephone 301-415-6057.

SUPPLEMENTARY INFORMATION:
I. Background
II. Responses to Comments
III. Final Action
IV. Voluntary Consensus Standards
V. Environmental Impact: Categorical Exclusion
VI. Paperwork Reduction Act Statement
VII. Regulatory Analysis
VIII. Regulatory Flexibility Analysis
IX. Backfit Analysis
X. Small Business Regulatory Enforcement Fairness Act

I. Background

For FY 2001, the NRC is required to recover through fees
approximately 98 percent of its budget authority, less the amounts
appropriated from the Nuclear Waste Fund (NWF) and from the General
Fund. The fee recovery amount for FY 2001 is approximately $453.3
million.
For FYs 1991 through 2000, OBRA-90, as amended, required that the
NRC recover approximately 100 percent of its budget authority, less the
amount appropriated from the U.S. Department of Energy (DOE)
administered NWF, by assessing fees. To address fairness and equity
concerns raised by the NRC related to charging NRC license holders for
agency expenses that do not provide a direct benefit to the licensee,
the FY 2001 Energy and Water Development Appropriations Act amended
OBRA-90 to decrease the NRC's fee recovery amount from 100 percent to
98 percent of the NRC's budget authority in FY 2001. The OBRA-90
amendment further decreases the fee recovery amount by an additional
two percent per year beginning in FY 2002 until the fee recovery amount
is 90 percent by FY 2005.
In addition to the 2 percent reduction to the fee recovery amount
for FY 2001, $3.2 million has been appropriated from the General Fund
for activities related to regulatory reviews and assistance provided to
other Federal agencies and States. The FY 2001 Energy and Water
Development Appropriations Act states that this $3.2 million shall be
excluded from license fee revenues. The total amount thus to be
recovered for FY 2001 is approximately $453.3 million.
The NRC assesses two types of fees to meet the requirements of
OBRA-90, as amended. First, license and inspection fees, established at
10 CFR part 170 under the authority of the Independent Offices
Appropriation Act of 1952 (IOAA), 31 U.S.C. 9701, recover the NRC's
costs of providing special benefits to identifiable applicants and
licensees. Examples of the services provided by the NRC for which these
fees are assessed are the review of applications for new licenses, the
review of applications for renewal of existing licenses, and the review
of requests for license amendments. Second, annual fees, established in
10 CFR part 171 under the authority of OBRA-90, recover generic and
other regulatory costs not otherwise recovered through 10 CFR part 170
fees.

II. Responses to Comments

The NRC published a proposed rule that presented the amendments
necessary to revise the licensing, inspection, and annual fees charged
to its licensees and applicants for FY 2001 on March 28, 2001 (66 FR
16982). Although the comment period ended on April 27, 2001, the NRC
evaluated the 13 comments which were received by the close of business
on May 7, 2001. Many of the comments raised similar issues. These
comments have been grouped, as appropriate, and addressed as single
issues in this final rule.
The comments and NRC's responses are as follows:

A. Legal Issues

1. Information Provided by NRC in Support of Proposed Rule
Comment. One commenter urged the NRC to provide licensees and the
public with a more detailed explanation of the specific activities and
associated costs that form the basis for the part 171 annual fees,
including detailed information on the outstanding major contracts,
their purpose, and their costs. The commenter stated that, to enable
stakeholders to provide meaningful comment on the proposed rule, the
NRC should provide sufficient detail on the costs associated with each
component of reactor regulation and other generic costs. The commenter
indicated that this more detailed information would allow licensees and
the public to provide more effective feedback and comment on the
efficiency of NRC's regulatory activities and would propel the
Commission to exercise its authority to promote increased fiscal
responsibility.
Response. The NRC believes that commenters were provided ample
information on which to base constructive comments on NRC's proposed
revisions to parts 170 and 171. Consistent with the requirements of
OBRA-90, the proposed fees were developed to recover approximately 98
percent of the NRC's FY 2001 budget

[[Page 32453]]

authority from the various classes of licensees. In addition to the
descriptions of the types of activities included in the proposed fees
and explanations of how the fees were calculated to recover the
budgeted costs for those activities, the proposed rule also announced
that the work papers supporting the proposed rule were available for
public examination. As the proposed rule stated, the work papers were
available in the NRC's Agencywide Documents Access and Management
System (ADAMS) for public examination (Accession No. ML010860287).
During the 30-day comment period the work papers were also available in
the NRC Public Document Room at One White Flint North, 11555 Rockville
Pike, Rockville, MD for the public's use. The work papers include
extensive information detailing the activities and the associated
budgeted resources allocated to the various classes of licensees. The
work papers show, by strategic arena, the allocation of budgeted costs
for each planned accomplishment within each program of each strategic
arena. In addition to the detailed budget information contained in the
work papers, the NRC has made available in the Public Document Room
NUREG-1100, Volume 16, ``Budget Estimates and Performance Plan, Fiscal
Year 2001 (February 2000),'' which discusses the NRC's budget for FY
2001, including the activities to be performed in each strategic arena.
The extensive information available to the public meets all legal
requirements and the NRC believes it provides the public with
sufficient information on which to base their comments on the proposed
fee rule.
The NRC's budgets and the manner in which the NRC carries out its
activities are outside the scope of this rulemaking. The purpose of
this rulemaking is to establish the fees necessary to recover
approximately 98 percent of the NRC's FY 2001 budget authority, less
the amounts appropriated from the NWF and the General Fund, as required
by OBRA-90, as amended. Therefore the commenter's suggestion that more
detailed information would allow the public to provide more effective
comments concerning the efficiencies of NRC's regulatory activities and
the manner in which NRC carries out its fiscal responsibilities are not
addressed in this final rule.

B. Specific Part 170 Issues

1. Hourly Rates
Comment. Some commenters opposed the $144 proposed hourly rate for
the materials program. As in similar comments received from the uranium
recovery industry on the issue in previous fee schedule rulemakings,
the commenters stated that the hourly rate is excessive, is more than
the professional hourly rates charged by national consulting firms, and
should be substantially reduced.
Response. The NRC's hourly rates are based on budgeted costs and
must be established at the revised levels to meet the fee recovery
requirements. The professional FTE rates include not only average
salaries and benefits for professional employees, but also a prorated
share of overhead costs, such as supervisory and secretarial support
and information technology overhead costs, as well as general and
administrative costs, such as rent, heat, supplies, and payroll and
human resources staffs.
The proposed hourly rate of $144 for the materials program is a
very slight increase over the $143 hourly rate for FY 2000. As stated
in the proposed rule, the increase is primarily due to the Government-
wide pay increase in FY 2001. The revised hourly rates, coupled with
the direct contract costs, recover through part 170 fees the full cost
to the NRC of providing special services to specifically identifiable
beneficiaries as provided by the IOAA, and the revised hourly rates
plus direct contract costs recover through part 171 annual fees the
required amount of NRC's budgeted costs for activities not recovered
through part 170 fees, as required by OBRA-90, as amended. The NRC is
establishing in this final rule the revised hourly rates necessary to
accomplish the fee recovery requirements. The professional hourly rate
for the reactor program is $150, and the professional hourly rate for
the materials program is $144. For part 170 activities, the rates will
be assessed for professional staff time expended on or after the
effective date of this final rule.
2. Project Manager Billing Issues
Comment. Four comments were received opposing NRC's assessment of
Part 170 fees to uranium recovery licensees to recover the costs for
Project Managers (PM) assigned to their licenses. Commenters indicated
that the PM charges have become an additional expense for the industry.
These commenters raised several specific concerns with this fee
recovery policy: the PM costs represent administrative charges that may
or may not be directly related to the licensee's operations; the PM
charges include generic efforts, such as rulemaking activities;
licensees have no way to control these costs because the charges are
allocated evenly among the licensees to which that PM is assigned; and
the problem is exacerbated when a PM is assigned to only one, or in
some cases only a few, licensee(s) who must pay all of the overhead
costs associated with that PM. Several commenters supported the re-
designation of PMs assigned to uranium recovery licenses as points of
contact, particularly for those licensees who are not currently
operating. One commenter stated that to the extent the NRC is required
to recover these costs, it should do so through the annual fee to
spread the costs more equitably across a range of licensees. One
commenter asserts that the billing policy is an unjustified and ultra
vires (beyond NRC's legitimate powers) implementation of its OBRA
responsibilities, and that it cannot be defended, particularly as a
shift of costs from part 171 fees to part 170 fees, because there has
not been a decrease in the part 171 fees commensurate with the increase
in part 170 fees. Referring to an NRC guidance document for staff hour
reporting and coding of activities in NRC's Regulatory Information
Tracking System (RITS) (the system used by the NRC to record and track
staff hours and from which data is gathered for fee billing purposes),
the same commenter charges that there is virtually no activity a PM
performs that is excluded from fee recovery. The commenter claims that
licensees are billed for generic efforts, despite statements to the
contrary in the final FY 1999 fee rule (64 FR 31448; June 10, 1999),
giving as an example ``rulemaking oversight'', which is assigned a code
in RITS. The same commenter stated that nothing in the statements of
consideration for the FY 1999 final rule, which provided examples of PM
activities that would be included in part 170 fees, indicated that
licensees would be charged for PM activities for work on the NRC's
accounting system or work for another branch/office.
Response. The NRC assesses part 170 fees for PM activities under
the authority of the IOAA. In the FY 1999 fee rule, the NRC stated that
expanding the scope of part 170 to include, for example, full cost
recovery for PMs is consistent with Title V of the IOAA,
interpretations of that legislation by the Federal courts, and
Commission guidance. These guidelines provide that part 170 fees may be
assessed to persons who are identifiable recipients of ``special
benefits'' conferred by specifically identified activities of the NRC.
Because PM activities are services which the NRC provides to specific,
identifiable recipients, it is more appropriate that the costs, less
costs for

[[Page 32454]]

generic activities and leave time, be recovered through part 170 fees
assessed to the recipient of that service, rather than through annual
fees assessed to the licensees in the class subject to annual fees.
Contrary to the commenter's claim, generic activities conducted by
PMs are not recovered through part 170 fees. The fact that rulemaking
activities are assigned a code in RITS does not mean that costs for
these generic activities are included in PM costs assessed under part
170. RITS is the system used by the NRC's major program offices for
recording staff hours, and the data is used for many purposes. Although
the NRC's part 170 billing system uses data from RITS, it is programmed
to exclude RITS data related to activities that are not subject to part
170 fees. Rulemaking activities are one example of the types of
activities that are excluded from part 170 fee billing. Other examples
of the types of activities that are coded in RITS but not billed under
part 170 are allegation followup activities, escalated enforcement
activities, and Combined Federal Campaign activities.
Generic activities are those NRC activities that broadly benefit
classes or subclasses of licensees. Examples of generic activities, as
stated in the FY 1999 final rule and reiterated in the FY 2000 final
rule (64 FR 31451; June 10, 1999, and 65 FR 36947; June 12, 2000,
respectively), include rulemaking and development of generic guidance
documents. General activities such as training, general correspondence,
attending staff meetings, coordination with and support to other
offices, and processing documents into the Agencywide Documents Access
and Management System (ADAMS) are not generic activities. In responding
to uranium recovery industry comments in the FY 2000 final rule, the
NRC listed these examples of the types of PM activities that are
recovered through PM part 170 fees. The examples provided by the NRC in
the FY 1999 and FY 2000 fee rules of PM activities to be billed under
part 170 and those excluded from part 170 billing were not intended to
be complete lists. Of the 420 RITS codes for use by PMs assigned to
uranium recovery and other types of materials licenses, only 125 are
identified for Part 170 billing purposes.
The PM activities charged under part 170 are general activities and
activities specifically related to the site, such as licensing reviews.
As the commenter indicated, the general activities billed under part
170 include time that a PM spends in reporting to the NRC's accounting
system. General activities are part of the costs to the agency of
providing the PM services, and the NRC continues to believe that the
costs are most appropriately recovered from the licensees benefitting
from the PM services.
The concept that the assessment of part 170 fees for PM activities
increases the costs to the uranium recovery class is incorrect. PM
charges might result in an increase for a particular licensee at a
particular point in time. However, billing for PM time under part 170
does not cause an increase, or a decrease, in the total fees assessed
to the class. Based on the OBRA-90 fee recovery requirements, all
budgeted costs allocated to a class that are not recovered through part
170 fees paid by the class are recovered through annual fees assessed
to those licensees in the class subject to the annual fees. Thus, all
budgeted costs allocated to a class are paid by the class, either
through part 170 fees or part 171 fees.
Although on the surface it may appear to be more fair to recover
the PM costs through annual fees, the end result would not necessarily
be equitable to those licensees paying the annual fees. If, for
example, the NRC were to discontinue assessing part 170 fees to uranium
recovery licensees for PM activities and all other conditions remained
the same, uranium recovery licensees subject to annual fees would pay
more in total costs because those uranium recovery licensees in
decommissioning are not subject to annual fees and therefore would no
longer pay for the PMs assigned to their site. Instead, the licensees
authorized to operate or in a standby status would pay those PM costs
through annual fees. To illustrate this point, the estimated average
total PM part 170 fees paid per year by uranium recovery licensees in
decommissioning or possession only status is $322,000. If the NRC
eliminated PM activities from Part 170 fees for the uranium recovery
class for a full fiscal year, the 11 licensees authorized to operate or
in a standby status would be assessed an additional $322,000 in annual
fees for that fiscal year in order to recover those costs.
The NRC finds no basis at this time to change its policy of
recovering the costs for PMs through part 170 fees, to change the
manner in which the costs are spread among those licensees assigned to
one PM, or to change the policy with regard to assessing one licensee
for all of the PM's activities when the PM is assigned to that one site
only. The NRC believes this is a fair and equitable method of
recovering these costs.
3. Clarification of Fee Waiver Provisions in Sec. 170.21, Footnote 4
and Sec. 170.31, Footnote 5
Comment. Two comments were received on the NRC's clarification of
the fee waivers provided in 10 CFR 170.21, Footnote 4, criterion 3, and
10 CFR 170.31, Footnote 5, criterion (c) for certain documents
submitted to the NRC. One commenter expressed concern that the NRC is
shifting cost recovery for generic activities from part 171 to part
170. Both commenters contend that the clarification will discourage
generic actions and is inconsistent with the Commission's policies
aimed at encouraging industry organizations to work cooperatively with
the NRC and recognizing the efficiencies and effectiveness to be gained
from these efforts. The commenters assert that the clarification
represents a change in policy and will discourage industry initiatives,
which serve to reduce NRC resource demands and expedite resolution of
issues on a generic basis. One commenter further contends that the
clarification is inconsistent with the NRC's strategic goal of making
its activities and decisions more effective, efficient, and realistic,
and recommends that NRC retain ``the original interpretation'' of the
fee waiver.
Response. The NRC's original interpretation of the subject fee
waiver provisions has not changed, and has been consistently applied in
granting or denying fee waiver requests. However, the NRC has
experienced an increase in the number of fee waiver requests that do
not meet the criteria. The NRC believes that this increase may be due,
at least in part, to the fact that the statements of consideration in
the FY 1994 fee rule concerning the waivers (59 FR 36895; July 20,
1994) were not repeated in subsequent fee rulemakings and are not
codified in the regulations. Therefore, licensees may be submitting fee
exemption requests that do not meet the criteria because they may not
be familiar with the intent of the fee waiver provisions.
As the statement of considerations for the 1994 fee rule indicates,
the fee waiver provisions of criterion 3 of Footnote 4 to Sec. 170.21
and criterion (c) of Footnote 5 to Sec. 170.31 apply to reports
submitted for the purpose of supporting NRC's generic regulatory
improvements, such as development of generic guidance and regulations
and resolution of safety issues applicable to a class of licensees. The
NRC has denied fee waiver requests for reports/requests that were not
submitted for the purpose of NRC's regulatory improvements, such

[[Page 32455]]

as those submitted for the purpose of furthering the industry's generic
actions. Although the NRC may realize some benefits from the review and
approval of reports/requests that are submitted for purposes other than
NRC's generic regulatory improvements, the primary beneficiary of the
review and approval of such reports is the organization that submitted
the report. Assessing part 170 fees for these special services rendered
to identifiable recipients is consistent with the provisions of the
IOAA. Contrary to one commenter's view, reports of this type do not
represent NRC generic activities. Therefore the NRC is not shifting
cost recovery for generic activities out of part 171 to part 170.
To assist licensees in determining in advance whether their
submissions meet the criteria for the fee waiver, the NRC is, in this
final rule, re-stating the original statement of considerations for the
FY 1994 rule related to the fee waivers, and is adding clarifying
language to the Footnotes that the reports/requests must be submitted
for the purpose of NRC's regulatory improvements for the fee to be
waived. This is not a change in policy, is consistent with how the fee
waiver provisions have been applied by the NRC, and is not inconsistent
with the NRC's strategic goals.
4. Invoice Information
Comment. Several commenters assert that NRC's invoices lack
adequate explanations of the work done and the dates the work was
performed. These commenters urged the NRC to continue its efforts to
provide invoices that contain more detailed information on the specific
costs. While recognizing that this would require major revisions to
NRC's billing system, commenters contend that the change would serve
the NRC, its licensees, and the public well.
Response. As the NRC has stated in response to similar comments on
previous rules, the NRC believes that sufficient information is
provided on the invoices for licensees and applicants to base payment
of the costs assessed under part 170. For NRC staff effort, specific
policies and procedures are in place for NRC staff to follow in
recording time in RITS, which is the NRC's current system for tracking
staff hours expended. The system contains specific codes for the
various types of licensing reviews, leave, training, general
administration effort, etc. From RITS, the fee billing system captures
the NRC staff hours for activities billable under part 170 as well as
the work effort code descriptions for those billable hours. For these
activities, the staff hours, work effort codes, the name of the staff
member performing the work, and the date the work was completed, if
applicable, are printed on the enclosure to the part 170 invoices.
Currently, the work effort codes are the only available data describing
the work performed, and they are the lowest level of detail available
in RITS. However, the NRC believes that the summary work descriptions
shown on the invoices are sufficient to allow licensees to identify the
subject of the NRC's efforts. Additionally, the inspection report
number is provided on inspection fee bills. Further, as the NRC has
stated in previous rules, any applicant or licensee who does not
understand the charges or needs more information in order to understand
the bill may request additional details from the NRC. All available
information in support of the bill will be provided. This has always
been an option available to licensees and applicants who feel they need
more information on the costs billed.
For contractor costs billed to uranium recovery licensees under
part 170, the NRC includes copies of the contractors' summary cost
reports with the invoices. Again, any additional information that is
available is provided upon a specific request of the applicant or
licensee. However, as the NRC has explained in the past, the NRC does
not plan to develop additional systems solely to provide additional
information on its fee invoices. Office of Management and Budget
Circular A-25, which provides guidelines for Federal agencies to assess
fees for Government services, provides that new cost accounting systems
do not need to be established solely for the purpose of determining or
estimating full cost.

C. Specific Part 171 Issues

1. Fee Exemption for Educational Institutions
Comment. One college holding an NRC materials license commented
that the proposed fee rule would represent a major financial burden to
the college and they would have to consider terminating their license.
The commenter requested that NRC provide a fee exemption for small
colleges and universities.
Response. The NRC has not changed the existing fee exemptions for
nonprofit educational institutions. The part 170 and part 171 fee
exemptions for nonprofit educational institutions were not shown in the
proposed rule for public comment because only sections of a regulation
that are being considered for change in a proposed rulemaking are
published in the Federal Register as part of the rulemaking process.
As provided in 10 CFR 170.11(a)(4) and 10 CFR 171.11(a)(1), fees
are not required for a license applied for by, or issued to, a
nonprofit educational institution. Therefore, most colleges and
universities will continue to be exempt from part 170 and part 171
fees. However, the fee exemptions do not apply to those licenses that
authorize human use; remunerated services to other persons;
distribution of byproduct, source, or special nuclear materials or
products containing byproduct, source, or special nuclear material; or
activities performed under a Government contract.
2. Small Entity Fees
Comment. One commenter stated that the range of $350,000 to
$5,000,000 in gross annual receipts for the two tiers of annual fees
for small entities is too large. The commenter indicated that their
firm is at the lower end of the range, paying the same annual fee as
another entity with four to five times their gross revenue. The
commenter suggested that to help reduce the license fee burden on
smaller entities, the NRC establish additional tiers between the
$350,000 and $5,000,000 range; for example, a tier of $350,000 to
$1,500,000 in gross annual receipts with an annual fee of $1,000, and a
tier of $1,500,000 to $5,000,000 with an annual fee of $1,500.
Response. The NRC believes that the two tiers of reduced annual
fees currently in place provide substantial fee relief for small
entities, including those with relatively low annual gross receipts.
Reductions in fees for small entities must be paid for by other NRC
licensees in order to meet the requirements of OBRA-90, as amended, to
recover most of the NRC's budget through fees. While establishing more
tiers would provide additional fee relief for some small entities, it
would result in an increase in the small entity subsidy other licensees
pay. The NRC believes that in order to maintain a reasonable balance
between the objectives of OBRA-90 and the of 1980 (RFA) requirement
that the NRC examine ways to minimize significant impacts its rules may
have on a substantial number of small entities, no further reductions
to the fees should be made.
The NRC established reduced annual fees for small entities based on
the RFA requirement that if an 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

[[Page 32456]]

impacts on small entities and the alternatives to minimize these
impacts. The NRC has performed a regulatory flexibility analysis as
part of its fee rulemaking each year since annual fees were first
established in FY 1991 under OBRA-90, based on the Commission's
conclusion that the annual fees for materials licensees result in
substantial fees being assessed to a significant number of small
entities.
To minimize the impacts of the annual fees, the NRC has established
a maximum annual fee for licensees who qualify as a small entity under
NRC's size standards. In 1992, the NRC established a lower tier small
entity fee to further reduce the impact of the annual fees for those
licensees with relatively low gross annual receipts of less than
$250,000 and for small governmental jurisdictions with a relatively low
population of less than 20,000 (57 FR 13625; April 17, 1992). In
establishing this lower tier, the NRC stated that the additional tier
would substantially reduce the impact of the annual fees for those
licensees with relatively low gross annual receipts, while at the same
time it would not substantially increase the amount of fees that other
licensees would be required to pay to subsidize the small entities.
In 1995, the NRC published a final rule amending its size standards
(60 FR 18344; April 11, 1995). One aspect of the amendment was to add a
size standard of 500 or fewer employees for business concerns that are
manufacturing entities. In the final FY 1995 fee rule, the gross-
receipts level for the lower-tier small entity fees was increased to
the current level of $350,000, and a lower tier of less than 35
employees was established for manufacturing entities.
For FY 2000, approximately 35 percent of the small entities
qualifying for reduced annual fees qualified for the lower tier small
entity fee. The NRC believes that maintaining a single lower tier
annual fee for small entities with relatively low gross annual receipts
of less than $350,000, for small governmental jurisdictions with a
population of less than 20,000, and for manufacturing entities that
have an average of less than 35 employees continues to provide a
further reduction to the impact of the annual fees to a significant
number of small entities.
Comment. Two comments were received concerning NRC's proposal to
discontinue mailing NRC Form 526, ``Certification of Small Entity
Status for the Purposes of Annual Fees Imposed Under 10 CFR part 171,''
with each annual fee invoice. One of the commenters indicated that the
proposal would result in a burden on the licensees because they would
have to obtain the form by other means, and that many of the ``mom and
pop'' operations may not have access to the Internet. This commenter
believes that, because only a small percentage of the total number of
small entity forms submitted are filed by licensees who do not qualify
for small entity status, the proposal would unfairly penalize those who
do qualify as a small entity. The commenter stated that because NRC
requires the form, the NRC is obligated to supply it by a means that is
accessible to all licensees. The commenter suggested that instead of
discontinuing mailing the form with the annual fee invoices, the form
be modified to make it clear who qualifies and who does not qualify as
a small entity.
Both commenters stated that the proposal would result in an
additional burden on NRC staff due to increased telephone calls
requesting the form and staff efforts to mail or fax the form to those
requesting it. One commenter believes that many licensees do not read
the proposed and final fee rules, and therefore would not be aware of
the revised policy. This would result in more calls to the NRC asking
why the form was not enclosed with the invoice.
Response. NRC Form 526 is one sheet, with the five NRC size
standards for small entities printed on the front, and the instructions
for completing the form printed on the back. Both sides of the form
state, in capital letters and in large print, that the form should not
be completed if the licensee does not qualify under one of the size
standards shown. In addition, the Certification block, which is to be
signed by the owner of the small entity or an official empowered to act
on behalf of that entity, states ``I certify that the above named NRC
licensee qualifies as a small entity under the size standards
established by the NRC for its licensees in 10 CFR 2.810 (60 FR 18344).
The licensee qualifies as a small entity under the specific size
standard indicated above.'' Thus, the NRC believes the form and the
accompanying instructions are clear that the form should be completed
only by those licensees that qualify as a small entity under NRC's size
standards.
However, as indicated in the proposed rule, the NRC continues to
receive forms completed by licensees who do not qualify as a small
entity. When contacted about improperly filed forms, many of these
licensees indicate they thought they had to complete the form because
it was enclosed with the annual fee invoice. It is for this reason that
the NRC proposed to discontinue including NRC Form 526 with each annual
fee invoice.
Licensees who file an improperly completed NRC Form 526 do so under
penalty of perjury, and could become the subject of an NRC
investigation. This could lead to fines, imprisonment, or both, and the
revocation or suspension of the license. The NRC believes that there is
merit to trying to minimize the number of improperly filed forms, the
resulting risk to the licensees, and the associated drain on NRC
resources.
The NRC is adopting the proposed change. However, in order to
minimize the impact on NRC licensees and NRC staff resources,
implementation of the revised policy of not mailing NRC Form 526 with
each annual fee invoice will be phased in. The NRC is evaluating
various options to determine the most cost effective means of
segregating in the annual fee billing system those licensees who are
identified in the accounting system as qualifying small entities for
the previous fiscal year. Once this process is in place, the NRC will
send NRC Form 526 only with those annual fee invoices issued to
licensees who qualified as a small entity for the prior year. When this
process is implemented, the NRC will send a notice with the annual fee
invoices issued to those licensees who did not qualify as a small
entity the previous year to advise them of the change and to provide
information on how they can obtain the form if they qualify as a small
entity in the current year. Until the revised process is in place, the
NRC will continue to mail NRC Form 526 with each annual fee invoice
issued to materials licensees.
Licensees who have questions about their status as a small entity
or about the process for filing the NRC Form 526 should contact the
NRC's license fee staff at 301-415-7554, or e-mail the fee staff at
fees@nrc.gov.
3. Annual Fees for Uranium Recovery Licensees
Comment. The NRC received 5 comments concerning the annual fees
charged to NRC's uranium recovery class of licensees. While most of the
commenters acknowledged the reduction in annual fees for the uranium
recovery class compared to FY 2000, many stated that the reduction does
not make up for an increase in total charges over the last two years
and does not go far enough. Some commenters are concerned with what
they believe is a lack of a reasonable relationship between the cost to
uranium recovery licensees of NRC's regulatory oversight program, and
the benefit derived from

[[Page 32457]]

that program. Several commenters indicate that sites that are on
standby or awaiting approval of reclamation plans should not be subject
to annual fees because they require minimal NRC oversight. Some
commenters stated that the decision to cease operations, go into
standby, or begin decommissioning is rarely at the licensee's
discretion, but rather is based on the realities of the uranium market.
Several commenters stated that the NRC must find an equitable way of
dealing with the decreasing number of licensees in the uranium recovery
area, which could result in the remaining few paying for the entire
program.
Some commenters referred to the April 10, 2001, Commissioners'
Briefing provided by the National Mining Association, where the status
of the uranium recovery industry, the impacts of NRC's fees on the
industry, and the potential for seeking fee relief were discussed.
Several commenters supported an industry-wide effort to seek relief
from NRC's fees through a petition for rulemaking or by pursuing
legislative relief. Commenters claim that the fees NRC charges uranium
recovery licensees threaten the viability of the industry, which is
vital to the nation's long-term energy security.
Response. The NRC has responded to similar comments concerning the
impact of its fees on the uranium recovery industry in several prior
fee rulemakings. Most recently, the NRC responded to these concerns in
the FY 2000 final rule (65 FR 36950, 36951; June 12, 2000). As
explained there, the NRC recognizes that fees may result in a
substantial financial hardship for the uranium recovery industry,
particularly in light of the industry's economic status and the
potential for a decreasing number of uranium recovery licensees.
However, consistent with the OBRA-90 requirement that the annual fees
must, to the maximum extent practicable, have a reasonable relationship
to the cost of providing regulatory services, the NRC's annual fees for
the uranium recovery class of licensees reflect the NRC's cost of its
regulatory services to the class. The NRC determined the costs to be
allocated to each class through an extensive review of each planned
accomplishment in the major program areas.
As the NRC has stated since FY 1991 when the 100 percent fee
recovery requirement was first implemented, the agency recognizes that
assessing fees to recover these costs as required by OBRA-90 may result
in adverse economic impacts on some licensees. However, a reduction in
the fees assessed to one class of licensees would require a
corresponding increase in the fees assessed to other classes. It is
largely for this reason that the NRC has heretofore not based the
annual fees on licensees' economic status, market conditions, or the
inability of licensees to pass through the costs to its customers.
Instead, the NRC has only considered the impacts it is required by law
to consider.
The NRC provides reduced annual fees for licensees who qualify as
small entities under NRC's size standards, based on a determination
under the provisions of the Regulatory Flexibility Act that annual fees
have a significant economic impact on a substantial number of small
entities. The reduction in annual fees for qualifying small entity
uranium recovery licensees is significant. For example, for FY 2000, an
in-situ mill licensee paid a reduced annual fee of $400 based on their
small entity status, a reduction of $26,850. Because OBRA-90 requires
that the NRC recover most of its budget through fees, costs not
recovered from licensees based on their small entity status, or for any
other reason, are allocated to other licensees. The subsidy for small
entities is recovered through the surcharge, with reactor licensees
paying about 80 percent of the total surcharge costs.
A decrease in the number of licensees does not necessarily reduce
the need for NRC's generic efforts and other activities recovered
through part 171 annual fees. For example, the number of licensees does
not affect the NRC's costs to establish a risk-informed, performance-
based regulatory framework or to maintain the Emergency Response
Center. However, the NRC budget process provides an on-going mechanism
for assuring that its programs are carried out in the most efficient
and effective manner. In FY 1999, budgeted costs of $5.8 million were
allocated to the uranium recovery class, including $0.7 million in
surcharge costs. In FY 2001, $4.3 million has been allocated to the
uranium recovery class, including $0.4 million in surcharge costs.
Thus, the budgeted costs for this class, including the allocated
surcharge costs, have been reduced by 25 percent since the last
rebaselining in FY 1999. After subtracting the estimated part 170
collections and other adjustments, the costs remaining to be recovered
through annual fees assessed to the class for FY 2001 is $1.5 million,
compared to $2.1 million for FY 1999, a reduction of approximately 29
percent as reflected in the reduced annual fees to be assessed uranium
recovery licensees for FY 2001.
The NRC has no choice but to assess annual fees to NRC licensees to
recover the budgeted costs not recovered through part 170 fees and
other receipts. However, as stated in the proposed rule, to address
fairness and equity concerns raised by the NRC related to assessing
fees to NRC licensees to recover costs for activities that do not
directly benefit them, the FY 2001 Energy and Water Development
Appropriations Act amended OBRA-90 to reduce the NRC's fee recovery
requirement by 2 percent per year beginning in FY 2001, until the fee
recovery amount is 90 percent by FY 2005. This results in a reduction
of $9.3 million in the total fees to be assessed to NRC licensees in FY
2001, a reduction which is shared by all licensees, including uranium
recovery licensees.
The NRC has previously considered whether licensees in a standby
status or awaiting approval of their reclamation plans should be
granted a full or partial exemption from annual fees based on their
non-operating status. For example, the NRC addressed this issue in
response to comments on the FY 1991 rule (56 FR 31461; July 10, 1991),
and further elaborated on it in 1995 in response to a petition for
rulemaking from the American Mining Congress (now the National Mining
Association) (60 FR 20918; April 28, 1995). The Commission currently
believes that the existing policy of assessing annual fees based on
whether a licensee holds a valid NRC license that authorizes possession
and use, whether or not the facility is actively operating or in a
standby status, represents the fairest option available under current
legislation. This policy is based on the basic premise that the benefit
the NRC provides a licensee is the authority to use licensed material.
Whether or not to exercise that authority is a business decision of the
licensee.
Based on the fee recovery requirements of OBRA-90, reducing the
number of licensees paying annual fees by granting relief for licensees
in a standby status would increase the annual fees assessed to the
remaining licensees. Providing such fee relief would add to the effects
of decreasing numbers of licensees on annual fees, which continues to
be of concern to commenters. Licensees in a standby status continue to
benefit from NRC's generic guidance and rules applicable to the uranium
recovery class of licensees and therefore should continue to pay annual
fees.
Although the comments indicate that annual fees are assessed to
certain licensees because of a failure on NRC's part to approve their
reclamation plans, this is not the case. The NRC waives the annual fee
for those licensees who have

[[Page 32458]]

relinquished their authority to operate and have permanently ceased
operations, as long as the notifications of such actions are filed by
the dates provided in the fee regulations. The reclamation plans do not
have to be approved by the NRC for the fee waiver to apply.
4. Quarterly Billing Schedule For Class I And Class II Licenses
Comment. Two commenters supported the NRC's proposal to establish a
quarterly annual fee billing schedule for Class I and Class II uranium
recovery licensees, regardless of the annual fee amounts.
Response. The NRC is modifying Sec. 171.19 in this final rule to
establish a quarterly annual fee billing schedule for uranium mill
licensees (Class I) and solution mining licensees (Class II). Because
the annual fees for these licensees have been close to the $100,000
threshold for quarterly billing, slight changes in the annual fees have
resulted in frequent changes in their billing schedules. This change
will provide these licensees with a consistent, predictable schedule
for paying their annual fees.
5. Annual Fees for Power Reactors in Decommissioning
Comment. The NRC received one comment concerning the spent fuel
storage/reactor decommissioning annual fee. The commenter stated that
the proposed 32 percent annual fee increase for this class of licensees
is not equitable and places an undue burden on the licensees in the
class. Comparing the proposed increased annual fee for the spent fuel
storage/reactor decommissioning class to the proposed decreased annual
fee for operating reactors, the commenter contends that the increase is
an undue burden because the decommissioning plants do not generate
revenue through the sale of electricity and have no guarantee of
recovering additional costs by petitioning local public utility
commissions.
The commenter said that the additional costs would have to be
assumed by existing plant decommissioning funds, which could affect the
resources available for performing plant decommissioning in a timely
manner. The commenter believes that at a minimum the fees should be
only incrementally increased by approximately six percent per year,
corresponding with the NRC phased budget reductions. The commenter
believes that this suggested approach would be consistent with the
intent of OBRA-90, as amended.
Response. The rebaselined annual fees for FY 2001 reflect the
budgeted costs for each class of licensees. Although NRC recognizes
that there may be adverse economic impacts on those classes of
licensees with annual fee increases, the NRC cannot mitigate the
adverse economic impacts by eliminating or reducing the fee increases
for one class without increasing the fees elsewhere, and thereby
creating adverse economic impacts for another class of licensees.
The increase in annual fees for the spent fuel storage/reactor
decommissioning class of licensees reflects an increase in budgeted
costs allocated to this class since the last annual fee rebaselining in
FY 1999. For example, compared to FY 1999, there were increases in
budgeted costs allocated to the spent fuel storage/reactor
decommissioning class for waste safety research, for spent fuel storage
licensing and inspection activities, and for rulemaking. Recovering the
costs associated with spent fuel storage and reactor decommissioning
from operating power reactors, reactors in decommissioning if they have
fuel on site, and those Part 72 spent fuel storage licensees who do not
hold a part 50 license is consistent with the intent of OBRA-90 that
NRC's resources be allocated among licensees or classes of licensees,
so that the licensees who require the greatest expenditure of the NRC's
resources will pay the greatest annual fee.
Because these costs are budgeted for activities related to the
spent fuel storage/reactor decommissioning class, there is no basis to
limit the fee increases that are necessary to recover the budgeted
costs from the class. However, based on revised part 170 estimated
collections for FY 2001, the annual fee in this final rule for each
licensee in the spent fuel storage/reactor decommissioning class is
$266,000, which is $9,000 less than the proposed annual fee of
$275,000.
In addition to reactor licensees in decommissioning, operating
reactors and part 72 licensees that do not hold a part 50 license will
also be assessed the increased FY 2001 spent fuel storage/reactor
decommissioning annual fee. The decrease in total FY 2001 annual fees
for operating power reactors is due to reduced budgeted costs for the
operating power reactor class compared to FY 1999.
6. Annual Fees for Fuel Facilities
Comment. One fuel facility licensee commented that the proposed fee
increase for fuel facilities would result in a financial burden that
counteracts the cost control and reduction efforts that are being
implemented by licensees in the class in order to effectively compete
in world markets. The commenter also indicated that the proposed rule
did not provide the basis for the increase in fuel facility budgeted
costs and therefore it was difficult to determine if they are fair and
equitable. Another fuel facility licensee referenced its March 13,
2001, request for a downgrade of its license and a reduction in the
annual fee, and its March 29, 2001, request for a license amendment to
reflect certain discontinued operations for purposes of downgrading the
license. The commenter stated that as a result of their request, the
fee rule should reflect the downgrade of the license from Category
1.A.(1)(b) to Category 1.A.(2)(a) and the FY 2001 annual fee should be
prorated accordingly.
Response. The rebaselined annual fees for FY 2001 have been
established based on the budgeted costs allocated to each class of
licensees, less the estimated Part 170 collections and other
adjustments for each class. The FY 2001 annual fees decreased for many
categories of licensees compared to FY 2000, and increased for others.
The NRC recognizes that the FY 2001 annual fees may have an adverse
impact on those classes of licensees with annual fee increases.
However, the rebaselined fees represent a fair and equitable allocation
of NRC's FY 2001 budgeted costs to the various classes of licensees.
The work papers supporting the proposed rule and this final rule show
in detail the allocation of the budgeted costs for each planned
accomplishment within the NRC's major programs to the various classes
of licensees, and how the fees are calculated. As the NRC stated in the
proposed rule (66 FR 16982, March 28, 2001), the work papers for the
proposed rule are available in ADAMS, and during the 30-day comment
period they were also available in the PDR for review. As shown in the
ADDRESSES section, the work papers for this final rule are also
available in ADAMS, and will be available in the PDR for review for a
period of 90 days from the date this final rule is published in the
Federal Register.
Cost control measures that a class of licensees might take do not
affect the amount of the budget that the NRC is required to recover
from that class through annual fees. Similarly, as the NRC has
indicated in several previous fee rulemakings, the NRC does not set
fees based on factors such as size, ability to pay, or other economic
factors. In order to meet the requirements of OBRA-90, the NRC is
unable to reduce

[[Page 32459]]

the fees assessed to one class of licensees without increasing the fees
assessed to other classes. Therefore, as stated previously, the NRC has
only given consideration to the effects it is required to consider by
law. As reflected in the Regulatory Flexibility Analysis, Appendix A to
this final rule, the NRC has determined that a maximum annual fee for
small entities strikes a balance between the fee recovery requirements
of OBRA-90, as amended, and the requirement of the Regulatory
Flexibility Act to consider means to reduce the impact of the fees on
small entities.
In FY 1995, after notice and comment rulemaking, the NRC
established the current methodology for determining annual fees for
fuel facilities. This methodology results in the reasonable grouping of
fuel facility licenses into fee categories according to the licensed
operations and the level, scope, depth of coverage, and rigor of
generic regulatory programmatic efforts. The programmatic efforts
reflect the safety and safeguards significance associated with the
authorized nuclear material and use/activity, and the commensurate
generic regulatory program (i.e., scope, depth and rigor). A matrix
depicts the categorization of the fuel facility licenses based on these
factors.
The NRC has modified the matrix based on the notification
referenced by one commenter that, prior to March 31, 2001, it had
permanently ceased certain licensed operations. The revised matrix
reflects the licensee's cessation of conversion of uranium hexafluoride
(UF₆) to uranium oxide (UO₂) and removal of the
remaining UF₆ from the facility prior to March 31, 2001. The
NRC has determined, however, that the reduced activities do not
diminish the licensee's total safety and safeguards effort factors and
the commensurate generic regulatory program to the extent that it will
place the license in the next lower fee category. The NRC will respond
separately to the specific issues raised in the commenter's March 13,
2001, letter requesting that the license be placed in a lower fee
category.
The revised matrix results in a redistribution of the safety and
safeguards costs among the fuel fabrication categories. Accordingly,
the annual fees for licensees in the fuel facility categories in this
final rule have changed from the amounts shown in the proposed rule.
The final annual fees for the various fuel facility categories also
reflect an increase in estimated Part 170 collections for the fuel
facility class for FY 2001 compared to the proposed rule. The final
annual fees for the various fuel facility categories are shown in
Sec. 171.31.

D. Other Issues

1. NRC's Budget
Comment. One commenter offered several suggestions for reducing
NRC's budget and for more efficient use of NRC resources. The commenter
indicates that the proposed rule does not account for a reduced number
of regional initiative inspections. The commenter suggested that
further improvements in inspection and assessment efficiency could be
realized by NRC's participation and oversight of licensee self-
assessments, rather than NRC conducting independent inspections. The
commenter also suggested that the NRC review the scope and content of
inspection procedures to make them further risk-informed, that the NRC
eliminate resources oriented to minimally safety-significant areas, and
that the NRC consider consolidating the regional offices in the near-
term and eliminating them in the longer term.
Response. As stated in the response to the comment concerning
information the NRC provided in support of the proposed and in response
to similar comments on previous fee rules, the NRC's budgets and the
manner in which the NRC carries out its activities are not within the
scope of this rulemaking. Therefore, this final rule does not address
the commenter's suggestions concerning NRC's budget and the use of NRC
resources. The NRC's budgets are submitted to the Office of Management
and Budget and then to Congress for review and approval. The
Congressionally-approved budget resulting from this process reflects
the resources necessary for NRC to carry out its statutory obligations.
In compliance with OBRA-90, the fees are established to recover the
required percentage of the approved budget.
However, it should be noted that the NRC's budget reflects its
efforts to be effective and efficient. Since FY 1993, the NRC budget
has been reduced by more than $25 million in current year dollars and
by more than $140 million or 25 percent in constant dollars. Over this
same timeframe the staffing of the NRC has been reduced by
approximately 600 FTE or 18 percent. To achieve these reductions, the
NRC has eliminated programs, improved processes, reduced overhead
requirements, and implemented efficiencies and cost savings. The
Commission continues to search vigorously for additional opportunities
to streamline its operations and to achieve efficiencies.

III. Final Action

The NRC is amending its licensing, inspection, and annual fees to
recover approximately 98 percent of its FY 2001 budget authority,
including the budget authority for its Office of the Inspector General,
less the appropriations received from the NWF and the General Fund. The
NRC's total budget authority for FY 2001 is $487.3 million, of which
$21.6 million has been appropriated from the NWF. In addition, $3.2
million has been appropriated from the General Fund for activities
related to regulatory reviews and assistance provided to other Federal
agencies and States. In the proposed rule, the total budget was shown
as $487.4 million. However, a rescission reduced the total budget
authority by approximately $75.0 thousand. This rescission did not
affect the fee recovery portion of the budget and, therefore, the fee
recovery amounts have not changed from the proposed rule. Based on the
98 percent fee recovery requirement, the NRC must collect approximately
$453.3 million in FY 2001 through Part 170 licensing and inspection
fees, Part 171 annual fees, and other offsetting receipts. The total
amount to be recovered through fees and other offsetting receipts for
FY 2001 is $6.3 million more than the amount estimated for recovery in
FY 2000. However, the FY 2001 fee recovery amount is further reduced by
a $3.1 million carryover from additional collections in FY 2000 that
were unanticipated at the time the final FY 2000 fee rule was
published. This leaves approximately $450.2 million to be recovered in
FY 2001 through Part 170 licensing and inspection fees, Part 171 annual
fees, and other offsetting receipts.
The NRC estimates that approximately $118.2 million will be
recovered in FY 2001 from Part 170 fees and other offsetting receipts.
The NRC also estimates a net adjustment for FY 2001 of approximately
$0.4 million for payments received in FY 2001 for FY 2000 invoices. The
remaining $332.0 million is to be recovered through the part 171 annual
fees, compared to $341.0 million for FY 2000.
Table I summarizes the budget and fee recovery amounts for FY 2001.

Table I.--Budget and Fee Recovery Amounts for FY 2001
[Dollars in millions]
------------------------------------------------------------------------

------------------------------------------------------------------------
Total Budget Authority....................................... $487.3
Less NWF................................................. -21.6
Less General Fund........................................ -3.2
----------
Balance................................................ $462.5

[[Page 32460]]

Fee Recovery Rate for FY 2001............................ x 98.0%
----------
Total Amount to be Recovered For FY 2001..................... $453.3
Less Carryover from FY 2000.............................. -3.1
----------
Amount to be Recovered Through Fees and Other Receipts....... $450.2
Less Estimated Part 170 Fees and Other Receipts.......... -118.2
----------
Part 171 Fee Collections Required........................... $332.0
==========
Part 171 Billing Adjustments................................
Unpaid FY 2001 Invoices (estimated)...................... 3.2
Less Payments Received in FY 2001 for Prior Year Invoices -3.6
(estimated).............................................
----------
Subtotal............................................... -0.4
==========
Adjusted Part 171 Collections Required...................... $331.6
------------------------------------------------------------------------

The final FY 2001 fee rule is a ``major'' final action as defined
by the Small Business Regulatory Enforcement Fairness Act of 1996.
Therefore, the NRC's fees for FY 2001 will become effective 60 days
after publication of the final rule in the Federal Register. The NRC
will send an invoice for the amount of the annual fee to reactors and
major fuel cycle facilities upon publication of the FY 2001 final rule.
For these licensees, payment will be due on the effective date of the
FY 2001 rule. Those materials licensees whose license anniversary date
during FY 2001 falls before the effective date of the final FY 2001
rule will be billed for the annual fee during the anniversary month of
the license at the FY 2000 annual fee rate. Those materials licensees
whose license anniversary date falls on or after the effective date of
the final FY 2001 rule will be billed for the annual fee at the FY 2001
annual fee rate during the anniversary month of the license, and
payment will be due on the date of the invoice.
In accordance with its FY 1998 announcement, the NRC has
discontinued mailing the final rule to all licensees as a cost-saving
measure. Accordingly, the NRC does not plan to routinely mail the FY
2001 final rule or future final rules to licensees. However, the NRC
will send the final rule to any licensee or other person upon request.
To request a copy, contact the License Fee and Accounts Receivable
Branch, Division of Accounting and Finance, Office of the Chief
Financial Officer, at 301-415-7554, or e-mail us at fees@nrc.gov. In
addition to publication in the Federal Register, the final rule will be
available on the Internet at http://ruleforum.llnl.gov.
The NRC is amending 10 CFR parts 170 and 171 as discussed in
Sections A and B below.

A. Amendments to 10 CFR Part 170: Fees for Facilities, Materials,
Import and Export Licenses, and Other Regulatory Services Under the
Atomic Energy Act of 1954, As Amended

The NRC is revising the hourly rates used to calculate fees and is
adjusting the 10 CFR part 170 fees based on the revised hourly rates
and the results of the NRC's biennial review of fees required by the
Chief Financial Officer (CFO) Act of 1990 (Pub. L. 101-578, Nov. 15,
1990, 104 Stat. 2838) (CFO Act). Additionally, the NRC is eliminating
the fees currently assessed to Agreement State licensees who file
revisions to the information submitted on their initial filing of NRC
Form 241, ``Report of Proposed Activities in Non-Agreement States,''
and including the costs for these revisions in the application fees
assessed for the initial Form 241. The NRC is also establishing an
annual registration fee of $450 to be assessed for part 31 general
licensees required to register certain types of generally licensed
devices. These final revisions are further discussed below.
The final amendments are as follows:
1. Hourly Rates
The NRC is revising the two professional hourly rates for NRC staff
time established in Sec. 170.20. These rates are based on the number of
FY 2001 direct program full time equivalents (FTEs) and the FY 2001 NRC
budget, excluding direct program support costs and NRC's appropriations
from the NWF and the General Fund. These rates are used to determine
the Part 170 fees. The hourly rate for the reactor program is $150 per
hour ($266,997 per direct FTE). This rate is applicable to all
activities for which fees are assessed under Sec. 170.21 of the fee
regulations. The hourly rate for the nuclear materials and nuclear
waste program is $144 per hour ($255,563 per direct FTE). This rate is
applicable to all activities for which fees are assessed under
Sec. 170.31 of the fee regulations. In the FY 2000 final fee rule, the
reactor and materials program rates were $144 and $143, respectively.
The increases are primarily due to the Government-wide pay increase in
FY 2001.
The method used to determine the two professional hourly rates is
as follows:
a. Direct program FTE levels are identified for the reactor program
and the nuclear material and waste program.
b. 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 rates because the costs for
direct contract support are charged directly through the various
categories of fees.
c. All other program costs (i.e., Salaries and Benefits, Travel)
represent ``in-house'' costs and are to be collected by dividing them
uniformly by the total number of direct FTEs for the program. In
addition, salaries and benefits plus contracts for non-program direct
management and support, and for the Office of the Inspector General,
are allocated to each program based on that program's direct costs.
This method results in the following costs which are included in the
hourly rates.

Table II.--FY 2001 Budget Authority Included in Hourly Rates
------------------------------------------------------------------------
Materials
Reactor program program
------------------------------------------------------------------------
Direct Program Salaries & Benefits.. $107.8M $31.3M
Overhead Salaries & Benefits, 56.1M 15.0M
Program Travel and Other Support...
Allocated Agency Management and 100.8M 28.5M
Support............................
-----------------------------------
Subtotal...................... $264.7M $74.8M
Less offsetting receipts............ -0.1M
-----------------------------------
Total Budget Included in $264.6M $74.8M
Hourly Rate..................
Program Direct FTEs................. 991.0 292.7

[[Page 32461]]

Rate per Direct FTE................. $266,997 $255,563
Professional Hourly Rate (Rate per $150 $144
direct FTE divided by 1,776 hours).
------------------------------------------------------------------------

As shown in Table II, dividing the $264.6 million (rounded)
budgeted amount included in the hourly rate for the reactor program by
the reactor program direct FTEs (991.0) results in a rate for the
reactor program of $266,997 per FTE for FY 2001. The Direct FTE Hourly
Rate for the reactor program is $150 per hour (rounded to the nearest
whole dollar). This rate is calculated by dividing the cost per direct
FTE ($266,997) by the number of productive hours in one year (1,776
hours) as set forth in the revised OMB Circular A-76, ``Performance of
Commercial Activities.'' Similarly, dividing the $74.8 million
(rounded) budgeted amount included in the hourly rate for the nuclear
materials and nuclear waste program by the program direct FTEs (292.7)
results in a rate of $255,563 per FTE for FY 2001. The Direct FTE
Hourly Rate for the materials program is $144 per hour (rounded to the
nearest whole dollar). This rate is calculated by dividing the cost per
direct FTE ($255,563) by the number of productive hours in one year
(1,776 hours).
2. Fee Adjustments
The NRC is adjusting the current part 170 fees in Secs. 170.21 and
170.31 to reflect both the changes in the revised hourly rates and the
results of the biennial review of part 170 fees required by the CFO
Act. To comply with the requirements of the CFO Act, the NRC has
evaluated historical professional staff hours used to process a new
license application for those materials licensees whose fees are based
on the average cost method, or ``flat'' fees. This review also included
new license and amendment applications for import and export licenses.
Evaluation of the historical data shows that fees based on the
average number of professional staff hours required to complete
materials licensing actions should be increased in some categories and
decreased in others, as described below, to more accurately reflect
current costs incurred in completing these licensing actions. The data
for the average number of professional staff hours needed to complete
new licensing actions was last updated in FY 1999 (64 FR 31448; June
10, 1999). Thus, the revised average professional staff hours reflect
the changes in the NRC licensing review program that have occurred
since FY 1999.
In summary, the final licensing fees reflect an increase in average
time for new license applications for seven of 33 materials fee
categories included in the biennial review, a decrease in average time
for five fee categories, and the same average time for the remaining 21
fee categories. Similarly, the average time for applications for new
export and import licenses and for amendments to export and import
licenses remained the same for eight fee categories in Secs. 170.21 and
170.31, and decreased for two other fee categories.
The revised licensing fees are based on the new average
professional staff hours needed to process the licensing actions
multiplied by the proposed professional hourly rate for FY 2001. The
amounts of the materials licensing ``flat'' fees are rounded as
follows: 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, and fees that are greater than $100,000 are rounded to
the nearest $1,000.
The licensing ``flat'' fees are applicable to fee categories K.1
through K.5 of Sec. 170.21, and fee categories 1C, 1D, 2B, 2C, 3A
through 3P, 4B through 9D, 10B, 15A through 15E, and 16 of Sec. 170.31.
An additional change to Category 16 is discussed in item 3. below.
Applications filed on or after the effective date of the final rule
will be subject to the revised fees in this final rule.
3. Fees for Revisions to Initial Reciprocity Applications
The NRC has taken several actions in the past few years to
streamline and stabilize fees assessed to materials user licensees
subject to ``flat'' fees. These actions included elimination of the
inspection, renewal, and amendment fees from part 170, and inclusion of
the costs for these activities in the part 171 annual fees. Materials
user licensees affected by these changes have responded favorably to
the elimination of multiple types of individual fees.
The NRC is taking a similar streamlining action for certain
submittals from Agreement State licensees operating in areas under NRC
jurisdiction under the part 150 reciprocity provisions. Currently, a
part 170 fee of $1,200 is charged for each initial filing of NRC Form
241, ``Report of Proposed Activities in Non-Agreement States,'' and an
additional fee of $200 is charged for each revision to the information
submitted on the initial NRC Form 241. Revisions are filed to request
approval for work locations, radioactive materials, or work activities
different from those submitted on the initial NRC Form 241. In FY 2000,
only $23,000 was collected for 115 revisions.
The NRC has eliminated the revision fees and included the costs for
processing them in the fee assessed for each initial reciprocity
application. For those revisions filed on or after the effective date
of this final rule, the reciprocity applicants will no longer be
required to submit payments with their revision requests. In addition
to the convenience for the reciprocity applicants, this will also
eliminate the NRC's administrative burden of processing the revisions
for fee collection purposes. This change plus the increase in the
hourly rate results in an increase in the application fee, from $1,200
to $1,400. The costs of the reciprocity program will still be recovered
from those receiving the benefit of the NRC's reciprocity activities.
It is the NRC's belief that the nominal increase to the application fee
and any potential inequities that might result because not all
reciprocity licensees file revisions during the year are outweighed by
the efficiencies to be gained by both the reciprocity applicants and
the NRC in streamlining the process.
A conforming revision to 10 CFR 150.20(b)(2) has also been made to
reflect this change.
4. Fees for General License Registrations
The NRC has established an application fee of $450 for
registrations filed in accordance with 10 CFR 31.5 for certain
generally licensed devices. The NRC published a proposed rule in the
Federal Register on July 26, 1999 (64 FR 40295), stating its intent to
amend current regulations governing the use of byproduct material in
certain measuring, gauging, or controlling devices. The proposed
amendments

[[Page 32462]]

included adding explicit requirements for a registration process under
10 CFR 31.5 for certain generally licensed devices; establishing a
registration fee; modifying reporting, record-keeping, and labeling
requirements; and clarifying which provisions of the regulations apply
to all general licenses for byproduct material. The NRC stated in the
proposed rule that the registration fee would recover the costs for
obtaining and maintaining information associated with the devices
subject to the registration requirement, processing and reviewing the
registrations, and for inspections and follow-up efforts expected to be
made as a result of the registration process identifying noncompliance
with existing regulations. The fee would be based on the average cost
of the program for each of the licensees registering devices. Some of
the general licensees, such as non-profit educational institutions,
would be exempt from the fee under Sec. 170.11. Costs not recovered
from this small segment of the general licensees registering devices
would continue to be recovered from annual fees paid by current holders
of specific licenses. The NRC also stated in the proposed rule that the
requirement for the registration fee would be effective after the
initial registration requests are sent for response under Sec. 31.5(c).
In this manner, the first round of registrations will be complete
before the requirement for the registration fee goes into effect.
The NRC published a final rule on December 18, 2000 (65 FR 79162),
amending 10 CFR Parts 30, 31, and 32 to explicitly require that certain
general licensees register their generally licensed devices with the
NRC each year and pay the appropriate registration fee. Therein the NRC
stated that the final fee, estimated at approximately $440 to $450,
would be established in the FY 2001 fee rulemaking based on that year's
budgeted costs for the program, the new FTE rate, and the estimated
number of general licensees required to register.
The NRC currently estimates that approximately 4300 general
licensees will be required to register their generally licensed
devices. The $450 registration fee is based on the estimated number of
registrants, current resource estimates, and the FY 2001 FTE rate. The
registration fee will be imposed beginning with the first re-
registration of devices currently in use. The registration fee will be
required for each annual re-registration of the devices and for all new
registrations of devices acquired after the registration program is
fully implemented.
Because this is a ``flat'' fee based on average cost, it will be
reviewed biennially as required by the CFO Act. The registration fee
established in this FY 2001 final fee rule will not change until the
next biennial review of fees in FY 2003.
5. Fee Waivers
To clarify the intent of the fee waiver provision for certain
reports filed with the NRC for review and approval, the NRC is
modifying the current criterion 3. of Footnote 4 to Sec. 170.21 and
criterion (c) of Footnote 5 to Sec. 170.31 to specifically state that
the review and approval of the reports must support NRC's generic
regulatory improvements or efforts. In addition, criteria 1., 2., and
3. of Footnote 4 to Sec. 170.21 have been redesignated as criteria (a),
(b), and (c).
In the recent past, several requests for part 170 fee exemptions
have been filed by licensees and various organizations who submit
topical reports or other documents to the NRC for review. Part 170
currently provides that fees will not be assessed for requests or
reports submitted to the NRC in response to an NRC inquiry to resolve
an identified safety, safeguards, or environmental issue; or to assist
the NRC in developing a rule, regulatory guide, policy statement,
generic letter or bulletin; or as a means of exchanging information
between industry organizations and the NRC for the purpose of
supporting generic regulatory improvements or efforts. Many of the fee
exemption requests have been denied because the submittals have not met
the intent of the waiver provision. For example, several fee waiver
requests were based on the industry's future use of the reports, rather
than these reports being submitted, reviewed, and approved for the
purpose of NRC's generic regulatory improvements.
In the statement of considerations for the FY 1994 fee rule (59 FR
36895; July 20, 1994), which incorporated this fee waiver provision,
the NRC stated that it believed the costs for some requests or reports
filed with the NRC are more appropriately captured in the part 171
annual fees rather than assessing specific fees under part 170. The
statement of considerations continued to state that these reports,
although submitted by a specific organization, support NRC's
development of generic guidance and regulations and resolution of
safety issues applicable to a class of licensee.
In summary, the NRC is amending 10 CFR part 170 to--
1. Revise the material and reactor program FTE hourly rates;
2. Revise the licensing fees to be assessed to reflect the revised
hourly rates and to comply with the CFO Act requirement that fees be
reviewed biennially and revised as necessary to reflect the cost to the
agency;
3. Eliminate fees for Agreement State licensees who submit
revisions to their initial requests for reciprocity in States under NRC
jurisdiction, and incorporate these costs into the initial reciprocity
application fee;
4. Establish registration fees to be assessed for each registration
or re-registration of generally licensed devices under 10 CFR 31.5,
beginning with the first re-registration of those generally licensed
devices currently in use; and
5. Clarify that the fee waiver provisions of the current criterion
3. of Footnote 4 to Sec. 170.21 and criterion (c) of Footnote 5 to
Sec. 170.31 apply only to requests/reports submitted to the NRC for the
purpose of supporting NRC's generic regulatory improvements or efforts,
and redesignate criteria 1., 2., and 3., of Footnote 4 to Sec. 170.21
as criteria (a), (b), and (c).

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

The NRC is revising the annual fees for FY 2001. The NRC is also
adopting its proposal to discontinue mailing NRC Form 526,
``Certification of Small Entity Status for the Purposes of Annual Fees
Imposed under 10 CFR part 171'' with each materials license annual fee
invoice. The amendments are as follows.
1. Annual Fees
The NRC is amending Secs. 171.15 and 171.16 to establish
rebaselined annual fees for FY 2001. The Commission's policy
commitment, made in the statement of considerations accompanying the FY
1995 fee rule (60 FR 32225; June 20, 1995) and further explained in the
statement of considerations accompanying the FY 1999 fee rule (64 FR
31448; June 10, 1999), establishes that base annual fees will be re-
established (rebaselined) at least every third year, and more
frequently if there is a substantial change in the total NRC budget or
in the magnitude of the budget allocated to a specific class of
licensees. The fees were last rebaselined in FY 1999. After carefully
considering all factors, including the changes to the amount of the
budget allocated to classes of licensees, and weighing the complex
issues related to both fairness and

[[Page 32463]]

stability of fees, the Commission has determined that it is appropriate
to rebaseline the annual fees this year. Rebaselining fees results in
reduced annual fees for a majority of the categories of licenses and
increased annual fees for other categories.
Although the NRC is sensitive to the effects the rebaselined fees
will have on those licensees with fee increases, establishing new
baseline annual fees this year results in a more precise relationship
between annual fees and NRC costs of providing services. It thus
constitutes one means to fairly and equitably allocate costs among the
NRC's licensees.
The annual fees in Secs. 171.15 and 171.16 are revised to recover
approximately 98 percent of the NRC's FY 2001 budget authority, less
fees collected under 10 CFR part 170 and funds appropriated from the
NWF and the General Fund. The total amount to be recovered through
annual fees for FY 2001 is $331.6 million, compared to $341.0 million
for FY 2000.
The FY 2001 annual fees reflect an increase for some categories of
licensees and a decrease for others from the previous year. The
decreases in annual fees range from approximately 2.2 percent for
operating power reactor licensees (including the spent fuel storage/
reactor decommissioning annual fee), to approximately 29.0 percent for
uranium recovery licensees. The increases in annual fees range from
approximately 2.6 percent for materials licenses authorizing
distribution of radiopharmaceuticals, to approximately 165.2 percent
for transportation quality assurance program approvals authorizing use
only.
The annual fees in this final rule for operating power reactors,
spent fuel storage/reactor decommissioning, and fuel facilities are
less than the proposed annual fees based on the final estimated part
170 collections for FY 2001. In addition, the final annual fees for
fuel facilities reflect a redistribution of budgeted costs among the
fuel facility categories. This redistribution is explained in detail in
Section III., Final Action.
Factors affecting the changes to the annual fee amounts include
changes in budgeted costs affecting the classes of licensees, the
reduction in the fee recovery rate from 100 percent for FY 2000 to 98
percent for FY 2001, the estimated part 170 collections for the various
classes of licensees, a $3.1 million carryover from additional
collections in FY 2000 that were unanticipated at the time the final FY
2000 fee rule was published, the increased hourly rates, decreases in
the numbers of licensees for certain categories of licenses, and, for
the materials user class, the results of the biennial review of Part
170 fees required by the CFO Act. The biennial review shows that the
average number of professional hours to conduct inspections and to
review new license applications for materials licenses increased for
some fee categories, decreased for others, or remained the same. The
average time to conduct inspections and to review new license
applications for the materials user license fee categories serve as
accurate measures of the complexity of the licenses and, therefore, are
used to allocate the materials budget for rebaselining the annual fees.
Increases in the average professional time for inspections and reviews
of new license applications result in higher annual fees for the
affected fee categories, assuming all else remains the same (e.g., no
loss of licensees).
The increase in annual fees (from $2,300 to $6,100) for
transportation quality assurance approvals authorizing use only, which
have the largest percentage increase, is due in part to the allocation
of budgeted costs for the enhanced participatory part 71 rulemaking,
headquarters and regional allegation and enforcement follow-up
activities, and the Office of Nuclear Material Safety and Safeguards'
risk study activities. In addition, there has been a decrease in the
amount of budgeted costs allocated for part 71 vendor inspections while
the allocation of budgeted costs for quality assurance reviews remained
about the same. The ratio of the budgeted costs for these activities is
currently used to allocate the total annual fee amount for the
transportation class, less the amount allocated to DOE for its
certificates of compliance, between the quality assurance approvals
authorizing use only and those that authorize use and fabrication/
design. As a result of the decrease in budgeted costs for part 71
vendor inspections, a larger percentage of the total annual fee amount
for the transportation class has been allocated to quality assurance
approvals authorizing use only than in the past.
Table III below shows the rebaselined annual fees for FY 2001 for
representative categories of licensees.

Table III.--Rebaselined Annual Fees for FY 2001
------------------------------------------------------------------------
FY 2001
Class of licensees annual fee
------------------------------------------------------------------------
Power Reactors (including Spent Fuel Storage/Reactor $2,753,000.
Decommissioning annual fee)...............................
Spent Fuel Storage/Reactor Decommissioning................. 266,000
Nonpower Reactors.......................................... 74,000
High Enriched Uranium Fuel Facility........................ 3,545,000
Low Enriched Uranium Fuel Facility......................... 1,146,000
UF₆ Conversion Facility.................................... 509,000
Uranium Mills.............................................. 94,300
Transportation:
Users/Fabricators........................................ 62,500
Users Only............................................... 6,100
Typical Materials Users:
Radiographers............................................ 12,500
Well Loggers............................................. 8,800
Gauge Users.............................................. 2,400
Broad Scope Medical...................................... 24,200
------------------------------------------------------------------------

The annual fees assessed to each class of licensees include a
surcharge to recover those NRC budgeted costs that are not directly or
solely attributable to the classes of licensees, but must be recovered
from licensees to comply with the requirements of OBRA-90, as amended.
Based on the amendment to OBRA-90 that reduced the NRC's fee recovery
requirement by 2 percent for FY 2001, from 100 percent to 98 percent of
the NRC's budget authority, the total surcharge costs to be recovered
through annual fees has been reduced by about $9.3 million. The total
FY 2001 budgeted costs for these activities and the reduction to these
amounts for fee recovery purposes are shown in Table IV. All dollar
amounts in the Table are rounded.

Table IV.--Surcharge Costs
[Dollars in Millions]
------------------------------------------------------------------------
FY 2001 Budgeted
Category of costs costs
------------------------------------------------------------------------
1. Activities not attributable to an existing NRC
licensee or class of licensee:
a. International activities...................... $6.0
b. Agreement State oversight..................... 7.1
c. Low-level waste disposal generic activities... 1.7

[[Page 32464]]

d. Site decommissioning management plan 7.3
activities not recovered under Part 170.........
2. Activities not assessed Part 170 licensing and
inspection fees or Part 171 annual fees based on
existing law or Commission policy:
a. Fee exemption for nonprofit educational 8.1
institutions....................................
b. Licensing and inspection activities associated 3.9
with other Federal Agencies.....................
c. Costs not recovered from small entities under 5.6
10 CFR 171.16(c)................................
3. Activities supporting NRC operating licensees and
others:
a. Regulatory support to Agreement States........ 14.4
b. Generic decommissioning/reclamation (except 3.4
those related to power reactors)................
------------------
Total surcharge costs.......................... 57.6
Less 2 percent of NRC's FY 2001 total budget (minus -9.3
NWF and General Fund amounts).......................
------------------
Total Surcharge Costs to be Recovered.......... $48.3
------------------------------------------------------------------------

As shown in Table IV, the total surcharge cost allocated to the
various classes of licensees for FY 2001 is $48.3 million. The NRC has
continued to allocate the surcharge costs, except Low-Level Waste (LLW)
surcharge costs, to each class of licensees based on the percent of
budget for that class. The NRC has continued to allocate the LLW
surcharge costs based on the volume of LLW disposed of by certain
classes of licensees. The surcharge costs allocated to each class are
included in the annual fee assessed to each licensee. The FY 2001
surcharge costs allocated to each class of licensees are shown in Table
V.

Table V--Allocation of Surcharge
[All dollar amounts are in millions and are rounded]
----------------------------------------------------------------------------------------------------------------
LLW surcharge Non-LLW surcharge Total
---------------------------------------------------- surcharge
Percent Amount Percent Amount amount
----------------------------------------------------------------------------------------------------------------
Operating Power Reactors....................... 74 $1.3 79.1 $36.9 $38.2
Spent Fuel Storage/Reactor Decomm.............. ........... ........... 9.2 4.3 4.3
Nonpower Reactors.............................. ........... ........... 0.1 0.0 0.0
Fuel Facilities................................ 8 0.1 5.3 2.5 2.6
Materials Users................................ 18 0.3 3.9 1.8 2.1
Transportation................................. ........... ........... 1.2 0.5 0.5
Rare Earth Facilities.......................... ........... ........... 0.2 0.1 0.1
Uranium Recovery............................... ........... ........... 1.0 0.4 0.4
------------- -------------------------
Total Surcharge.......................... ........... 1.7 ........... 46.6 48.3
----------------------------------------------------------------------------------------------------------------

The budgeted costs allocated to each class of licensees and the
calculations of the rebaselined fees are described in A through H
below. The work papers which support this final rule show in detail the
allocation of NRC's budgeted resources for each class of licensee and
how the fees are calculated. The work papers are available
electronically at the NRC's Public Electronic Reading Room on the
Internet at Website address http://www.gov/NRC/ADAMS/index.html. For a
period of 90 days after the effective date of this final rule, the work
papers may also be examined at the NRC Public Document Room located at
One White Flint North, Room O-1F22, 11555 Rockville Pike, Rockville, MD
20852-2738.
Because the FY 2001 fee rule is a ``major'' final action as defined
by the Small Business Regulatory Enforcement Fairness Act of 1996, the
NRC's fees for FY 2001 will become effective 60 days after publication
of the final rule in the Federal Register. The NRC will send an invoice
for the amount of the annual fee upon publication of the FY 2001 final
rule to reactors and major fuel cycle facilities. For these licensees,
payment will be due on the effective date of the FY 2001 rule. Those
materials licensees whose license anniversary date during FY 2001 falls
before the effective date of the FY 2001 final rule will be billed for
the annual fee during the anniversary month of the license, and
continue to pay annual fees at the FY 2000 rate in FY 2001. However,
those materials licensees whose license anniversary date falls on or
after the effective date of the FY 2001 final rule will be billed for
the annual fee at the FY 2001 rate during the anniversary month of the
license, and payment will be due on the date of the invoice.
a. Fuel Facilities. The FY 2001 budgeted costs to be recovered in
annual fees assessed to the fuel facility class of licensees is
approximately $17.4 million. This amount includes the LLW and other
surcharges allocated to the fuel facility class. The costs are
allocated to the individual fuel facility licensees based on the fuel
facility matrix established in the FY 1999 final fee rule (64 FR 31448;
June 10, 1999), as modified for FY 2001 to reflect a change in
programmatic efforts related to the low enriched uranium fuel facility
category. In this matrix, licensees are grouped into five categories
according to their licensed activities (i.e., nuclear material
enrichment, processing operations, and material form) and according to
the level, scope, depth of coverage, and rigor of generic regulatory
programmatic effort applicable to each category from

[[Page 32465]]

a safety and safeguards perspective. This methodology can be applied to
determine fees for new and current licensees, licensees in unique
license situations, and certificate holders.
The methodology allows for changes in the number of licensees or
certificate holders, licensed-certified material/activities, and total
programmatic resources to be recovered through annual fees. When a
license or certificate is modified, this fuel facility fee methodology
may result in a change in fee category and may have an effect on the
fees assessed to other licensees and certificate holders. For example,
if a fuel facility licensee amended its license/certificate in such a
way that it resulted in the licensee not being subject to Part 171 fees
applicable to fuel facilities, the budget for the safety and/or
safeguards component would be spread among the remaining licensees/
certificate holders, and result in a higher fee for those remaining in
that fee category.
The matrix has been revised for this final rule based on a
notification received in March 2001 from Westinghouse Electric Company,
LLC (formerly CE Nuclear Power LLC), holder of License SNM-33, that it
had permanently ceased certain licensed activities prior to March 31,
2001. The revised matrix reflects the licensee's cessation of
conversion of uranium hexafluoride (UF₆ ) to uranium oxide
(UO₂ ) and removal of the remaining UF₆ from the
facility prior to March 31, 2001. Although the reduced activities do
not diminish the licensee's total safety and safeguards effort factors
and the commensurate generic regulatory program to the extent that it
will place the license in the next lower fee category, it does result
in a redistribution of the safety and safeguards costs among the fuel
facility categories.
The methodology is applied as follows. First, a fee category is
assigned based on the nuclear material and activity authorized by the
license or certificate. Although a licensee/ certificate holder may
elect not to fully utilize a license/certificate, it is still used as
the source for determining authorized nuclear material possession and
use/activity. Next, the category and license/certificate information
are used to determine where the licensee/certificate holder fits into
the matrix. The matrix depicts the categorization of licensee/
certificate holders by authorized material types and use/activities and
the relative programmatic effort associated with each category. The
programmatic effort (expressed as a value in the matrix) reflects the
safety and safeguards risk significance associated with the nuclear
material and use/activity and the commensurate generic regulatory
program (i.e., scope, depth, and rigor).
The effort factors for the various subclasses of fuel facility
licensees are summarized in the table below.

Table VI.--Effort Factors for Fuel Facilities
----------------------------------------------------------------------------------------------------------------
Effort factors
Facility type Number of ----------------------------------------------------------
facilities Safety Safeguards
----------------------------------------------------------------------------------------------------------------
High Enriched Uranium Fuel.............. 2 91 (33.5%) 76 (55.1%)
Enrichment.............................. 2 70 (25.7%) 34 (24.6%)
Low Enriched Uranium Fuel............... 4 85 (31.3%) 23 (16.7%)
UF₆ Conversion.......................... 1 8 (2.9%) 3 (2.2%)
Limited Operations Facility............. 1 12 (4.4%) 0 (0%)
Others.................................. 1 6 (2.2%) 2 (1.4%)
----------------------------------------------------------------------------------------------------------------

Applying these factors to the safety, safeguards, and surcharge
components of the $17.4 million total annual fee amount for the fuel
facility class results in the annual fees for each licensee within the
subcategories of this class summarized in the table below.

TABLE VII.--Annual Fees for Fuel Facilities
------------------------------------------------------------------------
FY 2001
Facility type annual fee
------------------------------------------------------------------------
High Enriched Uranium Fuel................................. $3,545,000
Uranium Enrichment......................................... 2,208,000
Low Enriched Uranium....................................... 1,146,000
UF₆ Conversion............................................. 509,000
Limited Operations Facility................................ 467,000
Others..................................................... 340,000
------------------------------------------------------------------------

b. Uranium Recovery Facilities. The FY 2001 budgeted cost,
including surcharge costs, to be recovered through annual fees assessed
to the uranium recovery class is approximately $1.5 million. Of this
amount, $654,000 will be assessed to DOE to recover the costs
associated with DOE sites under the Uranium Mill Tailings Radiation
Control Act of 1978 (UMTRCA). The remaining $864,000 will be recovered
through annual fees assessed to conventional mills, solution mining
uranium mills, and mill tailings disposal facilities. The costs are
allocated to the individual uranium recovery licensees in these
categories based on the uranium recovery matrix established in the FY
1999 final fee rule (64 FR 31448; June 10, 1999).
The methodology for establishing part 171 annual fees for uranium
recovery licensees has not changed and is as follows:
(1) The methodology identifies three categories of licensees:
conventional uranium mills (Class I facilities), solution mining
uranium mills (Class II facilities), and mill tailings disposal
facilities (11e(2) disposal facilities). Each of these categories
benefits from the generic uranium recovery program efforts (e.g.,
rulemakings, staff guidance documents, etc.);
(2) The matrix relates the category and the level of benefit by
program element and subelement;
(3) The two major program elements of the generic uranium recovery
program are activities related to facility operations and those related
to facility closure;
(4) Each of the major program elements was further divided into
three subelements;
(5) The three major subelements of generic activities associated
with uranium facility operations are regulatory efforts related to the
operation of mills, handling and disposal of waste, and prevention of
groundwater contamination. The three major subelements of generic
activities associated with uranium facility closure are regulatory
efforts related to decommissioning of facilities and land clean-up,
reclamation and closure of tailings impoundments, and groundwater
clean-up. Weighted values were assigned to each program element and
subelement considering health and safety implications and the
associated effort to regulate these activities. The applicability of
the generic program in each subelement to each uranium recovery
category was qualitatively

[[Page 32466]]

estimated as either significant, some, minor, or none.
The relative weighted factors per facility type for the various
subclasses of uranium recovery licensees are as follows.

Table VIII.--Weighted Factors for Uranium Recovery Licenses
----------------------------------------------------------------------------------------------------------------
Level of benefit
----------------------------------------------------
Facility type Total weight
Number of Category -------------------------
facilities weight Value Percent
----------------------------------------------------------------------------------------------------------------
Class I (conventional mills)............................... 3 770 2310 33
Class II (in-situ mills)................................... \1\ 6.5 645 4193 59
11e(2) disposal............................................ 1 475 475 7
11e(2) disposal incident to existing tailings sites........ 1 75 75 1
----------------------------------------------------------------------------------------------------------------
\1\The FY 2001 annual fee will be prorated 50 percent for Cogema Mining's License SUA-1341 based on its November
10, 2000, request that the license be amended for possession only.

Applying these factors to the $864,000 in budgeted costs to be
recovered results in the following annual fees:

Table IX.--Annual Fees for Uranium Recovery Licenses
------------------------------------------------------------------------
FY 2001
Facility type annual fee
------------------------------------------------------------------------
Class I (conventional mills)............................... $94,300
Class II (in-situ mills)................................... 79,000
11e(2) disposal............................................ 58,200
11e(2) disposal incidental to existing tailings sites...... 9,200
------------------------------------------------------------------------

The FY 2001 annual fees for Class I and Class II facilities
(conventional mills and in-situ mills), are below the $100,000
threshold currently established in Sec. 171.19 for quarterly billing.
Therefore, under the current requirements these licensees would be
subject to annual fee billing based on the anniversary date of their
license for FY 2001. In FY 1999 the reverse situation occurred for
these licensees; i.e., in FY 1998 the annual fees were below the
$100,000 quarterly billing threshold and the licensees were billed on
the license anniversary date, but beginning in FY 1999 the licensees
became subject to quarterly billing for the annual fees because the
fees were over the $100,000 threshold. Because the annual fees for
these licensees have been close to the $100,000 threshold, small
changes to the annual fee amounts have resulted in frequent changes to
their annual fee billing schedule. To provide stability in the billing
schedule, the NRC is revising Sec. 171.19 to establish a quarterly
billing schedule for the Class I and Class II licensees, regardless of
the annual fee amount. This will provide these licensees with a
consistent, predictable schedule for paying their annual fees. As
provided in Sec. 171.19(b), if the amounts collected in the first three
quarters of FY 2001 exceed the amount of the revised annual fee, the
overpayment will be refunded.
c. Power Reactors. The approximately $258.7 million in budgeted
costs to be recovered through FY 2001 annual fees assessed to operating
power reactors are allocated uniformly to the 104 operating power
reactors. This results in a FY 2001 annual fee of $2,487,000 per
reactor. Additionally, each operating reactor will be assessed the
spent fuel storage/reactor decommissioning annual fee, which for FY
2001 is $266,000. This results in a total FY 2001 combined annual fee
of $2,753,000 for each operating power reactor.
d. Spent Fuel Storage/Reactor Decommissioning. For FY 2001,
budgeted costs of approximately $32.2 million for spent fuel storage/
reactor decommissioning are to be recovered through annual fees
assessed to Part 50 power reactors, except those reactors in
decommissioning which do not have spent fuel on site, and to part 72
licensees who do not hold a part 50 license. The costs are divided
equally among the 121 licensees, resulting in an FY 2001 annual fee of
$266,000 per licensee.
e. Non-power Reactors. Approximately $296,000 in budgeted costs is
to be recovered through annual fees assessed to the non-power reactor
class of licensees for FY 2001. This amount is divided equally among
the four non-power reactors subject to annual fees. This results in an
FY 2001 annual fee of $74,000 for each licensee.
f. Rare Earth Facilities. The FY 2001 budgeted costs of
approximately $89,600 for rare earth facilities to be recovered through
annual fees is divided equally among the three licensees who have a
specific license for receipt and processing of source material. The
result is an FY 2001 annual fee of $29,900 for each rare earth
facility.
g. Materials Users. To equitably and fairly allocate the $23.1
million in FY 2001 budgeted costs to be recovered in annual fees
assessed to the approximately 5000 diverse materials users and
registrants, the NRC has continued to use the FY 1999 methodology to
establish baseline annual fees for this class. The annual fees are
based on the part 170 application fees and an estimated cost for
inspections. Because the application fees and inspection costs are
indicative of the complexity of the license, this approach continues to
provide a proxy for allocating the generic and other regulatory costs
to the diverse categories of licensees based on how much it costs the
NRC to regulate each category. The fee calculation also continues to
consider the inspection frequency (priority), which is indicative of
the safety risk and resulting regulatory costs associated with the
categories of licensees. The annual fee for these categories of
licensees is developed as follows.

Annual fee = Constant x [Application Fee + (Average Inspection Cost
divided by Inspection Priority)]
+ Inspection Multiplier x (Average
Inspection Cost divided by Inspection Priority) + Unique Category Costs

The constant is the multiple necessary to recover approximately
$15.1 million in general costs and is 0.96 for FY 2001. The inspection
multiplier is the multiple necessary to recover approximately $5.7
million in inspection costs for FY 2001, and is 1.2 for FY 2001. The
unique category costs are any special costs that the NRC has budgeted
for a specific category of licensees. For FY 2001, unique costs of
approximately $143,000 were identified for the medical development
program, an amount attributable to medical licensees.
The annual fee assessed to each licensee also includes a share of
the $1.8 million in surcharge costs allocated to the materials user
class of licensees and, for certain categories of these licenses, a
share of the approximately $300,000 in LLW surcharge costs allocated to
the

[[Page 32467]]

class. The annual fee for each fee category is shown in Sec. 171.16(d).
h. Transportation. Of the approximately $3.9 million in FY 2001
budgeted costs to be recovered through annual fees assessed to the
transportation class of licensees, approximately $1.1 million will be
recovered from annual fees assessed to DOE based on the number of part
71 Certificates of Compliance that it holds. Of the remaining $2.8
million, approximately 26 percent is allocated to the 83 quality
assurance plans authorizing use only and the 36 quality assurance plans
authorizing use and design/fabrication. The remaining 74 percent is
allocated only to the 36 quality assurance plans authorizing use and
design/fabrication. This results in an FY 2001 annual fee of $6,100 for
each of the holders of quality assurance plans that authorize use only,
and an FY 2001 annual fee of $62,500 for each of the holders of quality
assurance plans that authorize use and design/fabrication.
2. Small Entity Annual Fees
In the FY 2000 fee rule (65 FR 36946; June 12, 2000), the NRC
stated that it would re-examine small entity fees each year that annual
fees are rebaselined. Accordingly, the NRC has re-examined the small
entity fees and does not believe that a change to the small entity fees
is warranted for FY 2001. In FY 2000, the NRC revised the small entity
fees for the first time since they were introduced in FY 1991 and FY
1992. The revision in FY 2000 was based on the 25 percent increase in
average total fees assessed to other materials licensees since the
small entity fees were first established and on changes that had
occurred in the fee structure for materials licensees over time (65 FR
36956, 36957). The NRC does not consider the approximately 13 percent
decrease in the average FY 2001 fees for other materials licensees to
be significant enough to warrant another change to the small entity
fees this year.
Unlike the annual fees assessed to other licensees, the small
entity fees are not designed to recover the agency costs associated
with particular licensees. Rather, they are designed to provide some
fee relief for qualifying small entity licensees while at the same time
recovering from those licensees some of the NRC's costs for activities
that benefit them. The costs not recovered from small entities must be
recovered from other licensees. The current small entity fees of $500
and $2,300 provide considerable relief to many small entities.
In the future the NRC plans to re-examine small entity fees every
two years, in the same years in which it conducts the biennial review
of fees as required by the CFO Act, instead of each year that annual
fees are rebaselined as indicated in the FY 2000 fee rule. The annual
fees for materials users now include the cost of amendments, renewals,
and inspections. However, at a maximum, annual fees are rebaselined
every three years, but may be rebaselined earlier if warranted.
Therefore, reviewing the small entity fees only when the annual fees
are rebaselined results in a variable schedule for the re-examinations
and any potential changes to the fees. Re-examining the small entity
annual fees every two years, on the same schedule as the biennial
review under the CFO Act, provides a routine, predictable schedule and
allows licensees to anticipate when potential changes to these fees
might occur.
3. Other Amendments
The NRC currently sends an NRC Form 526, ``Certification of Small
Entity Status for the Purposes of Annual Fees Imposed Under 10 CFR part
171,'' with each annual fee invoice issued to materials licensees.
Although the instructions on the form state that it is to be filed only
by those licensees who qualify as a small entity under NRC's size
standards, the NRC has received many improperly filed forms. When
contacted, many of these licensees have indicated they completed the
form because it was enclosed with the annual fee invoice. In an effort
to minimize the number of improperly filed forms, the NRC will phase
out mailing the form with each annual fee invoice. Instead, licensees
will be able to access NRC Form 526 on the NRC's external web site at
http://www.nrc.gov. Those licensees that qualify as a ``small entity''
under the NRC size standards at 10 CFR Part 2.810 will be able to
complete the form in accordance with the instructions provided and
submit the completed form and the appropriate payment to the address
provided on the invoice. For licensees who cannot access the NRC's
external web site, NRC Form 526 can be obtained either through the
local point of contact listed in the NRC's ``Materials Annual Fee
Billing Handbook,'' NUREG/BR-0238, which is enclosed with each annual
fee invoice, by calling the NRC's fee staff at 301-415-7554, or by e-
mailing the fee staff at fees@nrc.gov.
In summary, the NRC has--
1. Established new rebaselined annual fees for FY 2001;
2. Revised Sec. 171.16(c)(2) to delete the sentence indicating that
NRC will mail NRC Form 526 with each annual fee invoice.
3. Revised Sec. 171.19 to establish a quarterly annual fee billing
schedule for Class I and Class II uranium recovery licensees; and
4. Determined that the small entity fees will be re-examined every
two years, on the same schedule as the biennial review of fees required
by the CFO's Act.

IV. Voluntary Consensus Standards

The National Technology Transfer and Advancement Act of 1995, Pub.
L. 104-113, requires that Federal agencies use technical standards that
are developed or adopted by voluntary consensus standards bodies unless
using such a standard is inconsistent with applicable law or is
otherwise impractical. In this final rule, the NRC is amending the
licensing, inspection, and annual fees charged to its licensees and
applicants as necessary to recover approximately 98 percent of its
budget authority in FY 2001 as is required by the Omnibus Budget
Reconciliation Act of 1990, as amended. This action does not constitute
the establishment of a standard that contains generally applicable
requirements.

V. Environmental Impact: Categorical Exclusion

The NRC has determined that this final rule is the type of action
described in categorical exclusion 10 CFR 51.22(c)(1). Therefore,
neither an environmental assessment nor an environmental impact
statement has been prepared for the final regulation. By its very
nature, this regulatory action does not affect the environment and,
therefore, no environmental justice issues are raised.

VI. Paperwork Reduction Act Statement

This final rule contains no information collection requirements
and, therefore, is not subject to the requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

VII. Regulatory Analysis

With respect to 10 CFR part 170, this final rule was developed
pursuant to Title V of the Independent Offices Appropriation Act of
1952 (IOAA) (31 U.S.C. 9701) and the Commission's fee guidelines. When
developing these guidelines the Commission took into account guidance
provided by the U.S. Supreme Court on March 4, 1974, in National Cable
Television Association,

[[Page 32468]]

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). The
Commission's fee guidelines were developed based on these legal
decisions.
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). This court held that--
(1) The NRC had the authority to recover the full cost of providing
services to identifiable beneficiaries;
(2) The NRC could properly assess a fee for the costs of providing
routine inspections necessary to ensure a licensee's compliance with
the Atomic Energy Act and with applicable regulations;
(3) The NRC could charge for costs incurred in conducting
environmental reviews required by NEPA;
(4) The NRC properly included the costs of uncontested hearings and
of administrative and technical support services in the fee schedule;
(5) The NRC could assess a fee for renewing a license to operate a
low-level radioactive waste burial site; and
(6) The NRC's fees were not arbitrary or capricious.
With respect to 10 CFR part 171, on November 5, 1990, the Congress
passed Pub. L. 101-508, the Omnibus Budget Reconciliation Act of 1990
(OBRA-90), which required that, for FYs 1991 through 1995,
approximately 100 percent of the NRC budget authority be recovered
through the assessment of fees. OBRA-90 was subsequently amended to
extend the 100 percent fee recovery requirement through FY 2000. The FY
2001 Energy and Water Development Appropriations Act amended OBRA-90 to
decrease the NRC's fee recovery amount from 100 percent to 98 percent
of the NRC's budget authority for FY 2001. To comply with this
statutory requirement, and in accordance with Sec. 171.13, the NRC is
publishing the amount of the FY 2001 annual fees for 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, consistent with
the accompanying Conference Committee Report, and the amendments to
OBRA-90, provides that--
(1) The annual fees be based on approximately 98 percent of the
Commission's FY 2001 budget of $487.4 million less the amounts
collected from part 170 fees and funds directly appropriated from the
NWF to cover the NRC's high level waste program;
(2) The annual fees shall, to the maximum extent practicable, have
a reasonable relationship to the cost of regulatory services provided
by the Commission; and
(3) The annual fees be assessed to those licensees the Commission,
in its discretion, determines can fairly, equitably, and practicably
contribute to their payment.
In addition, the NRC's FY 2001 appropriations language provides
that $3.2 million appropriated from the General Fund for activities
related to regulatory reviews and other assistance provided to the
other Federal agencies and States be excluded from fee recovery.
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). Further, the NRC's FY 1991 annual fee rule
methodology was upheld by the D.C. Circuit Court of Appeals in Allied
Signal v. NRC, 988 F.2d 146 (D.C. Cir. 1993).

VIII. Regulatory Flexibility Analysis

The NRC is required by the Omnibus Budget Reconciliation Act of
1990, as amended, to recover approximately 98 percent of its FY 2001
budget authority through the assessment of user fees. This act further
requires that the NRC establish a schedule of charges that fairly and
equitably allocates the aggregate amount of these charges among
licensees.
This final rule establishes the schedules of fees that are
necessary to implement the Congressional mandate for FY 2001. The final
rule will result in increases in the annual fees charged to certain
licensees and holders of certificates, registrations, and approvals,
and decreases in annual fees for others, including those that qualify
as a small entity under NRC's size standards in 10 CFR 2.810. The
Regulatory Flexibility Analysis, prepared in accordance with 5 U.S.C.
604, is included as Appendix A to this final rule.
The Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA) was signed into law on March 29, 1996. The SBREFA requires all
Federal agencies to prepare a written compliance guide for each rule
for which the agency is required by 5 U.S.C. 604 to prepare a
regulatory flexibility analysis. Therefore, in compliance with the law,
Attachment 1 to the Regulatory Flexibility Analysis is the small entity
compliance guide for FY 2001.

IX. Backfit Analysis

The NRC has determined that the backfit rule, 10 CFR 50.109, does
not apply to this final rule and that a backfit analysis is not
required for this final rule. The backfit analysis is not required
because these final 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.

X. Small Business Regulatory Enforcement Fairness Act

In accordance with the Small Business Regulatory Enforcement
Fairness Act of 1996, Pub. L. 104-121, the NRC has determined that this
action is a major rule and has verified the determination with the
Office of Information and Regulatory Affairs of the Office of
Management and Budget.

List of Subjects

10 CFR Part 150

Criminal penalties, Hazardous materials transportation,
Intergovernmental relations, Nuclear materials, Reporting and
recordkeeping requirements, Security measures, Source material, Special
nuclear material.

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.

[[Page 32469]]

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
adopting the following amendments to 10 CFR Parts 150, 170 and 171.

PART 150--EXEMPTIONS AND CONTINUED REGULATORY AUTHORITY IN
AGREEMENT STATES AND IN OFFSHORE WATERS UNDER SECTION 274

1. The authority citation for Part 150 continues to read as
follows:

Authority: Sec. 161, 68 Stat. 948, as amended, sec. 274, 73
Stat. 688 (42 U.S.C. 2201, 2021); sec. 201, 88 Stat. 1242, as
amended (42 U.S.C. 5841).
Sections 150.3, 150.15, 150.15a, 150.31, 150.32 also issued
under secs. 11e(2), 81, 68, Stat. 923, 935, as amended, secs. 83,
84, 92 Stat. 3033, 3039 (42 U.S.C. 2014e(2), 2111, 2113, 2114).
Section 150.14 also issued under sec. 53, 68 Stat. 930, as amended
(42 U.S.C. 2073). Section 150.15 also issued under secs. 135, 141,
Pub. L. 97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161).
Section 150.17a also issued under sec. 122, 68 Stat. 939 (42 U.S.C.
2152). Section 150.30 also issued under sec. 234, 83 Stat. 444 (42
U.S.C. 2282).

2. In Sec. 150.20, paragraph (b)(2) is revised to read as follows:

Sec. 150.20 Recognition of Agreement State licenses.

* * * * *
(b) * * *
(2) Shall file an amended NRC Form 241 or letter with the Regional
Administrator to request approval for changes in work locations,
radioactive material, or work activities different from the information
contained on the initial NRC Form 241.
* * * * *

PART 170--FEES FOR FACILITIES, MATERIALS, IMPORT AND EXPORT
LICENSES, AND OTHER REGULATORY SERVICES UNDER THE ATOMIC ENERGY ACT
OF 1954, AS AMENDED

3. The authority citation for Part 170 is revised to read as
follows:

Authority: sec. 9701, Pub. L. 97-258, 96 Stat. 1051 (31 U.S.C.
9701); sec. 301, Pub. L. 92-314, 86 Stat. 227 (42 U.S.C. 2201w);
sec. 201, Pub. L. 93-438, 88 Stat. 1242, as amended (42 U.S.C.
5841); sec. 205a, Pub. L. 101-576, 104 Stat. 2842, as amended (31
U.S.C. 901, 902).

4. Section 170.2 is amended by adding paragraph (s) to read as
follows:

Sec. 170.2 Scope.

* * * * *
(s) A holder of a general license granted by 10 CFR Part 31 who is
required to register a device(s).

5. Section 170.3 is amended by revising the definitions of
Materials License and Special Projects to read as follows:

Sec. 170.3 Definitions.

* * * * *
Materials License means a license, certificate, approval,
registration, or other form of permission issued or granted by the NRC
under the regulations in 10 CFR Parts 30, 31 through 36, 39, 40, 61,
70, 72, and 76.
* * * * *
Special Projects means those requests submitted to the Commission
for review for which fees are not otherwise specified in this chapter.
Examples of special projects include, but are not limited to, topical
report reviews, early site reviews, waste solidification facilities,
route approvals for shipment of radioactive materials, services
provided to certify licensee, vendor, or other private industry
personnel as instructors for Part 55 reactor operators, reviews of
financial assurance submittals that do not require a license amendment,
reviews of responses to Confirmatory Action Letters, reviews of uranium
recovery licensees' land-use survey reports, and reviews of 10 CFR
50.71 final safety analysis reports. As used in this part, special
projects does not include requests/reports submitted to the NRC--
(1) In response to a Generic Letter or NRC Bulletin that does not
result in an amendment to the license, does not result in the review of
an alternate method or reanalysis to meet the requirements of the
Generic Letter, or does not involve an unreviewed safety issue;
(2) In response to an NRC request (at the Associate Office Director
level or above) to resolve an identified safety, safeguards, or
environmental issue, or to assist the NRC in developing a rule,
regulatory guide, policy statement, generic letter, or bulletin; or
(3) As a means of exchanging information between industry
organizations and the NRC for the purpose of supporting the NRC's
generic regulatory improvements or efforts.
* * * * *

6. In Sec. 170.12, paragraph (a) is revised to read as follows:

Sec. 170.12 Payment of Fees.

(a) Application and registration fees. Each application or
registration for which a fee is prescribed must be accompanied by a
remittance for the full amount of the fee. The NRC will not issue a new
license or an amendment increasing the scope of an existing license to
a higher fee category before receiving the prescribed application fee.
The application or registration fee(s) is charged whether the
Commission approves the application or not. The application or
registration fee(s) is also charged if the applicant withdraws the
application or registration.
* * * * *

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 re-qualification and replacement examinations and tests, other
required reviews, approvals, and inspections under Secs. 170.21 and
170.31 will be calculated using the following applicable professional
staff-hour rates:

Reactor Program (Sec. 170.21 Activities): $150 per hour
Nuclear Materials and Nuclear Waste Program (Sec. 170.31
Activities): $144 per hour

8. In Sec. 170.21, the introductory text, Category K, and footnotes
1, 2, 3, and 4 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, re-qualification and replacement
examinations for reactor operators, and special projects and holders of
construction permits, licenses, and other approvals shall pay fees for
the following categories of services.

[[Page 32470]]

Schedule of Facility Fees
[See footnotes at end of table]
------------------------------------------------------------------------
Facility categories and type of fees Fees 1,2
------------------------------------------------------------------------

* * * *
* * *
K. Import and export licenses
Licenses for the import and export only of production and
utilization facilities or the export only of components
for production and utilization facilities issued under 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............................ $9,400
Amendment.......................................... $9,400
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............................ $5,500
Amendment.......................................... $5,500
3. Application for export of components requiring
foreign government assurances only:
Application-new license............................ $1,700
Amendment.......................................... $1,700
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.......................................... $220
------------------------------------------------------------------------
\1\ Fees will not be charged for orders issued by the Commission under
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 in
effect now or in the future, 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 final rule effective June 20, 1984 (and contained
in the 10 CFR, parts 0 to 199, edition revised as of January 1, 1985)
and the final rule effective July 2, 1990 (and contained in the 10
CFR, parts 51 to 199, edition revised as of January 1, 1991), 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.
\3\ Inspections covered by this schedule are both routine and non-
routine safety and safeguards inspections performed by NRC for the
purpose of review or follow-up of a licensed program. Inspections are
performed through the full term of the license to ensure that the
authorized activities are being conducted in accordance with the
Atomic Energy Act of 1954, as amended, other legislation, Commission
regulations or orders, and the terms and conditions of the license.
Non-routine inspections that result from third-party allegations will
not be subject to fees.
\4\ 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 NRC's generic
regulatory improvements or efforts.
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.

[[Page 32471]]

Schedule of Materials Fees
------------------------------------------------------------------------
Category of materials licenses and type of fees \1\ Fees \2\
-----------------------------------------------------------------\3\----
1. Special nuclear material:
A. Licenses for possession and use of 200 grams or more Full Cost
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: Licensing and Inspection.............
B. Licenses for receipt and storage of spent fuel at an Full Cost
independent spent fuel storage installation (ISFSI):
Licensing and inspection..............................
C. Licenses for possession and use of special nuclear $660
material in sealed sources contained in devices used
in industrial measuring systems, including x-ray
fluorescence analyzers: \4\ Application...............
D. All other special nuclear material licenses, except $1,300
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........
E. Licenses or certificates for construction and Full Cost
operation of a uranium enrichment facility: Licensing
and inspection........................................
2. Source material:
A.(1) Licenses for possession and use of source Full Cost
material in recovery operations such as milling, in-
situ leaching, heap-leaching, refining uranium mill
concentrates to uranium hexafluoride, ore buying
stations, and 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: Licensing and inspection..
(2) Licenses that authorize the receipt of byproduct Full Cost
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 2A(1): Licensing and inspection..............
(3) Licenses that authorize the receipt of byproduct Full Cost
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 2A(1): Licensing and inspection...........
B. Licenses which authorize the possession, use, and/or $160
installation of source material for shielding:
Application...........................................
C. All other source material licenses: Application..... $5,700
3. Byproduct material:
A. Licenses of broad scope for the possession and use $6,700
of byproduct material issued under parts 30 and 33 of
this chapter for processing or manufacturing of items
containing byproduct material for commercial
distribution: Application.............................
B. Other licenses for possession and use of byproduct $2,200
material issued under part 30 of this chapter for
processing or manufacturing of items containing
byproduct material for commercial distribution:
Application...........................................
C. Licenses issued under Secs. 32.72, 32.73, and/or $8,700
32.74 of this chapter that authorize 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...........................................
D. Licenses and approvals issued under Secs. 32.72, $2,400
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 under 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.............................
E. Licenses for possession and use of byproduct $1,700
material in sealed sources for irradiation of
materials in which the source is not removed from its
shield (self-shielded units): Application.............
F. Licenses for possession and use of less than 10,000 $3,400
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.....................
G. Licenses for possession and use of 10,000 curies or $8,000
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.....................
H. Licenses issued under subpart A of part 32 of this $2,300
chapter to distribute items containing byproduct
material that require device review to persons exempt
from the licensing requirements of part 30 of this
chapter. The category does not include 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..................................
I. Licenses issued under subpart A of part 32 of this $3,400
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.
This category does not include 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...........................................
J. Licenses issued under subpart B of part 32 of this $1,000
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. This category does not include specific
licenses authorizing redistribution of items that have
been authorized for distribution to persons generally
licensed under part 31 of this chapter: Application...
K. Licenses issued under subpart B of part 32 of this $590
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. This category does not include specific
licenses authorizing redistribution of items that have
been authorized for distribution to persons generally
licensed under part 31 of this chapter: Application...
L. Licenses of broad scope for possession and use of $5,700
byproduct material issued under parts 30 and 33 of
this chapter for research and development that do not
authorize commercial distribution: Application........
M. Other licenses for possession and use of byproduct $2,500
material issued under part 30 of this chapter for
research and development that do not authorize
commercial distribution: Application..................
N. Licenses that authorize services for other $2,600
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...............................

[[Page 32472]]

O. Licenses for possession and use of byproduct $4,200
material issued under part 34 of this chapter for
industrial radiography operations: Application........
P. All other specific byproduct material licenses, $1,300
except those in Categories 4A through 9D: Application.
Q. Registration of a device(s) generally licensed under $450
part 31: Registration.................................
4. Waste disposal and processing:
A. Licenses specifically authorizing the receipt of Full Cost
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: Licensing and
inspection............................................
B. Licenses specifically authorizing the receipt of $1,700
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.................................
C. Licenses specifically authorizing the receipt of $2,600
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.................................
5. Well logging:
A. Licenses for possession and use of byproduct $5,600
material, source material, and/or special nuclear
material for well logging, well surveys, and tracer
studies other than field flooding tracer studies:
Application...........................................
B. Licenses for possession and use of byproduct Full Cost
material for field flooding tracer studies: Licensing.
6. Nuclear laundries:
A. Licenses for commercial collection and laundry of $11,500
items contaminated with byproduct material, source
material, or special nuclear material: Application....
7. Medical licenses:
A. Licenses issued under parts 30, 35, 40, and 70 of $6,300
this chapter for human use of byproduct material,
source material, or special nuclear material in sealed
sources contained in teletherapy devices: Application.
B. Licenses of broad scope issued to medical $4,500
institutions or two or more physicians under 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...........................................
C. Other licenses issued under parts 30, 35, 40, and 70 $2,200
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.
8. Civil defense:
A. Licenses for possession and use of byproduct $330
material, source material, or special nuclear material
for civil defense activities: Application.............
9. Device, product, or sealed source safety evaluation:
A. Safety evaluation of devices or products containing $5,400
byproduct material, source material, or special
nuclear material, except reactor fuel devices, for
commercial distribution: Application--each device.....
B. Safety evaluation of devices or products containing $5,400
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...........................................
C. Safety evaluation of sealed sources containing $1,600
byproduct material, source material, or special
nuclear material, except reactor fuel, for commercial
distribution: Application--each source................
D. Safety evaluation of sealed sources containing $550
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................................................
10. Transportation of radioactive material:
A. Evaluation of casks, packages, and shipping Full Cost
containers: Licensing and inspections.................
B. Evaluation of 10 CFR part 71 quality assurance
programs:
Application........................................ $650
Inspections........................................ Full Cost
11. Review of standardized spent fuel facilities: Licensing Full Cost
and inspection............................................
12. Special projects:\5\
Approvals and preapplication/..........................
Licensing activities................................... Full Cost
Inspections............................................ Full Cost
13. A. Spent fuel storage cask Certificate of Compliance: Full Cost
Licensing.................................................
B. Inspections related to spent fuel storage cask Full Cost
Certificate of Compliance.................................
C. Inspections related to storage of spent fuel under Full Cost
Sec. 72.210 of this chapter..............................
14. Byproduct, source, or special nuclear material licenses Full Cost
and other approvals authorizing decommissioning,
decontamination, reclamation, or site restoration
activities under parts 30, 40, 70, 72, and 76 of this
chapter: Licensing and inspection.........................
15. Import and Export licenses: Licenses issued under 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........................... $9,400
Amendment.......................................... $9,400

[[Page 32473]]

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........................... $5,500
Amendment.......................................... $5,500
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........................... $1,700
Amendment.......................................... $1,700
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 $220
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.
16. Reciprocity:
Agreement State licensees who conduct activities under $1,400
the reciprocity provisions of 10 CFR 150.20:
Application...........................................
------------------------------------------------------------------------
\1\ Types of fees--Separate charges, as shown in the schedule, will be
assessed for pre-application consultations and reviews and
applications for new licenses and approvals, issuance of new licenses
and approvals, certain amendments and 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 and registration fees. Applications for new materials
licenses and export and import licenses; applications to reinstate
expired, terminated, or inactive licenses except those subject to fees
assessed at full costs; applications filed by Agreement State
licensees to register under the general license provisions of 10 CFR
150.20; and applications for amendments to materials licenses that
would place the license in a higher fee category or add a new fee
category must be accompanied by the prescribed application fee for
each category.
(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.
(2) Applications for new licenses that cover both byproduct material and
special nuclear material in sealed sources for use in gauging devices
will pay the appropriate application fee for fee Category 1C only.
(b) Licensing fees. Fees for reviews of applications for new licenses
and for renewals and amendments to existing licenses, for pre-
application consultations and for reviews of other documents submitted
to NRC for review, and for project manager time for fee categories
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).
(c) Amendment fees. Applications for amendments to export and import
licenses must be accompanied by the prescribed amendment fee for each
license affected. An application for an amendment to a license or
approval classified in more than one fee category must be accompanied
by the prescribed amendment fee for the category affected by the
amendment unless the amendment is applicable to two or more fee
categories, in which case the amendment fee for the highest fee
category would apply.
(d) Inspection fees. Inspections resulting from investigations conducted
by the Office of Investigations and non-routine inspections that
result from third-party allegations are not subject to fees.
Inspection fees are due upon notification by the Commission in
accordance with Sec. 170.12(c).
(e) Generally licensed device registrations under 10 CFR 31.5.
Submittals of registration information must be accompanied by the
prescribed fee.
\2\ Fees will not be charged for orders issued by the Commission under
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 in effect now or in the future), 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 multiplied by the appropriate professional hourly rate
established in Sec. 170.20 in effect at the time the service is
provided, and the appropriate contractual support services expended.
For those applications currently on file for which review costs have
reached an applicable fee ceiling established by the final rule
effective June 20, 1984 (and contained in the 10 CFR, parts 0 to 199,
edition revised as of January 1, 1985) and the final rule effective
July 2, 1990 (and contained in the 10 CFR, parts 51 to 199, edition
revised as of January 1, 1991), 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.
\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 for an application that deals
only with the sealed sources authorized by the license.
\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 re-analysis 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 the 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 the NRC's generic regulatory
improvements or efforts.

[[Page 32474]]

10. Section 170.41 is revised to read as follows:

Sec. 170.41 Failure by applicant or licensee to pay prescribed fees.

If the Commission determines that an applicant or a licensee has
failed to pay a prescribed fee required in this part, the Commission
will not process any application and may suspend or revoke any license
or approval issued to the applicant or licensee. The Commission may
issue an order with respect to licensed activities that the Commission
determines to be appropriate or necessary to carry out the provisions
of this part, parts 30, 31, 32 through 35, 40, 50, 61, 70, 71, 72, 73,
and 76 of this chapter, and of the act.

PART 171--ANNUAL FEES FOR REACTOR LICENSES AND FUEL CYCLE LICENSES
AND MATERIAL LICENSES, INCLUDING HOLDERS OF CERTIFICATES OF
COMPLIANCE, REGISTRATIONS, AND QUALITY ASSURANCE PROGRAM APPROVALS
AND GOVERNMENT AGENCIES LICENSED BY THE NRC

11. The authority citation for Part 171 is revised 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. 2132, as amended by sec. 6101, Pub.
L. 101-508, 104 Stat. 1388, as amended by sec. 2903a, Pub. L. 102-
486, 106 Stat. 3125 (42 U.S.C. 2213, 2214); sec. 301, Pub. L. 92-
314, 86 Stat. 227 (42 U.S.C. 2201w); sec. 201, Pub. L. 93-438, 88
Stat. 1242, as amended (42 U.S.C. 5841).

12. In Sec. 171.5, the definition of Materials License is revised
to read as follows:

Sec. 171.5 Definitions.

* * * * *
Materials License means a license, certificate, approval,
registration or other form of permission issued or granted by the NRC
under the regulations in 10 CFR parts 30, 31 through 36, 39, 40, 61,
70, 71, 72, and 76.
* * * * *

13. In Sec. 171.15, paragraphs (b), (c), (d), and (e) are revised
to read as follows:

Sec. 171.15 Annual Fees: Reactor licenses and independent spent fuel
storage licenses.

* * * * *
(b)(1) The FY 2001 annual fee for each operating power reactor
which must be collected by September 30, 2001, is $2,753,000.
(2) The FY 2001 annual fee is comprised of a base operating power
reactor annual fee, a base spent fuel storage/reactor decommissioning
annual fee, and associated additional charges (surcharges). The
activities comprising the FY 2001 spent storage/reactor decommissioning
base annual fee are shown in paragraph (c)(2)(i) and (ii) of this
section. The activities comprising the FY 2001 surcharge are shown in
paragraph (d)(1) of this section. The activities comprising the FY 2001
base annual fee for operating power reactors are as follows:
(i) Power reactor safety and safeguards regulation except licensing
and inspection activities recovered under part 170 of this chapter and
generic reactor decommissioning activities.
(ii) Research activities directly related to the regulation of
power reactors, except those activities specifically related to reactor
decommissioning.
(iii) Generic activities required largely for NRC to regulate power
reactors, e.g., updating part 50 of this chapter, or operating the
Incident Response Center. The base annual fee for operating power
reactors does not include generic activities specifically related to
reactor decommissioning.
(c)(1) The FY 2001 annual fee for each power reactor holding a part
50 license that is in a decommissioning or possession only status and
has spent fuel on-site and each independent spent fuel storage part 72
licensee who does not hold a part 50 license is $266,000.
(2) The FY 2001 annual fee is comprised of a base spent fuel
storage/reactor decommissioning annual fee (which is also included in
the operating power reactor annual fee shown in paragraph (b) of this
section), and an additional charge (surcharge). The activities
comprising the FY 2001 surcharge are shown in paragraph (d)(1) of this
section. The activities comprising the FY 2001 spent fuel storage/
reactor decommissioning rebaselined annual fee are--
(i) Generic and other research activities directly related to
reactor decommissioning and spent fuel storage; and
(ii) Other safety, environmental, and safeguards activities related
to reactor decommissioning and spent fuel storage, except costs for
licensing and inspection activities that are recovered under part 170
of this chapter.
(d)(1) The activities comprising the FY 2001 surcharge are as
follows:
(i) Low level waste disposal generic activities;
(ii) Activities not attributable to an existing NRC licensee or
class of licensees (e.g., international cooperative safety program and
international safeguards activities, support for the Agreement State
program, and site decommissioning management plan (SDMP) activities);
and
(iii) Activities not currently subject to 10 CFR part 170 licensing
and inspection fees based on existing law or Commission policy (e.g.,
reviews and inspections of nonprofit educational institutions,
licensing actions for Federal agencies, and costs that would not be
collected from small entities based on Commission policy in accordance
with the Regulatory Flexibility Act).
(2) The total FY 2001 surcharge allocated to the operating power
reactor class of licensees is $38.2 million, not including the amount
allocated to the spent fuel storage/reactor decommissioning class. The
FY 2001 operating power reactor surcharge to be assessed to each
operating power reactor is approximately $367,000. This amount is
calculated by dividing the total operating power reactor surcharge
($38.2 million) by the number of operating power reactors (104).
(3) The FY 2001 surcharge allocated to the spent fuel storage/
reactor decommissioning class of licensees is $4.3 million. The FY 2001
spent fuel storage/reactor decommissioning surcharge to be assessed to
each operating power reactor, each power reactor in decommissioning or
possession only status that has spent fuel onsite, and to each
independent spent fuel storage part 72 licensee who does not hold a
part 50 license is approximately $35,600. This amount is calculated by
dividing the total surcharge costs allocated to this class by the total
number of power reactor licenses, except those that permanently ceased
operations and have no fuel on site, and part 72 licensees who do not
hold a part 50 license.
(e) The FY 2001 annual fees for licensees authorized to operate a
non-power (test and research) reactor licensed under part 50 of this
chapter, unless the reactor is exempted from fees under Sec. 171.11(a),
are as follows:

Research reactor: $74,000
Test reactor: $74,000

14. In Sec. 171.16, paragraphs (c), (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

[[Page 32475]]

the Commission with the proper certification along with its annual fee
payment, the licensee may pay reduced annual fees as shown in this
paragraph. Failure to file a small entity certification in a timely
manner could result in the denial of any refund that might otherwise be
due.

------------------------------------------------------------------------
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.............................. $2,300
Less than $350,000.................................. 500
Manufacturing entities that have an average of 500
employees or less:
35 to 500 employees................................. 2,300
Less than 35 employees.............................. 500
Small Governmental Jurisdictions (Including publicly
supported educational institutions) (Population):
20,000 to 50,000.................................... 2,300
Less than 20,000.................................... 500
Educational Institutions that are not State or Publicly
Supported, and have 500 Employees or Less:
35 to 500 employees................................. 2,300
Less than 35 employees.............................. 500
------------------------------------------------------------------------

(1) A licensee qualifies as a small entity if it meets the size
standards established by the NRC (See 10 CFR 2.810).
(2) A licensee who seeks to establish status as a small entity for
the purpose of paying the annual fees required under this section must
file a certification statement with the NRC. The licensee must file the
required certification on NRC Form 526 for each license under which it
is billed. NRC Form 526 can be accessed through the NRC's external web
site at http://www.nrc.gov. Licensees who cannot access the NRC's
external web site may obtain NRC Form 526 through the local point of
contact listed in the NRC's ``Materials Annual Fee Billing Handbook,''
NUREG/BR-0238, which is enclosed with each annual fee billing, by
calling the fee staff at 301-415-7554, or by e-mailing the fee staff at
fees@nrc.gov>.
(3) For purposes of this section, the licensee must submit a new
certification with its annual fee payment each year.
(4) The maximum annual fee a small entity is required to pay is
$2,300 for each category applicable to the license(s).
(d) The FY 2001 annual fees for materials licensees and holders of
certificates, registrations or approvals subject to fees under this
section are shown in this paragraph. The FY 2001 annual fees are
comprised of a base annual fee and an additional charge (surcharge).
The activities comprising the FY 2001 surcharge are shown for
convenience in paragraph (e) of this section.

Schedule of Materials Annual Fees and Fees for Government Agencies
Licensed by NRC
------------------------------------------------------------------------
Category of materials licenses Annual fees 1
----------------------------------------------------------------2 3-----
1. Special nuclear material:
A.(1) Licenses for possession and use of U-235 or
plutonium for fuel fabrication activities.
(a) Strategic Special Nuclear Material:
Babcock & Wilcox SNM-42..................... $3,545,000
Nuclear Fuel Services SNM-124............... 3,545,000
(b) Low Enriched Uranium in Dispersible Form
Used for Fabrication of Power Reactor Fuel:
Westinghouse Electric Company LLC SNM-33.... 1,146,000
Global Nuclear Fuel--Americas, LLC SNM-1097. 1,146,000
Framatome ANP Richland, Inc. SNM-1227....... 1,146,000
Westinghouse Electric--Columbia SNM-1107.... 1,146,000
(2) All other special nuclear materials licenses not
included in Category 1A(1) which are licensed for
fuel cycle activities.
(a) Facilities with limited operations: 467,000
Framatome Cogema SNM-1168......................
(b) All Others: General Electric SNM-960........ 340,000
B. Licenses for receipt and storage of spent fuel at N/A\11\
an independent spent fuel storage installation
(ISFSI)............................................
C. Licenses for possession and use of special 1,400
nuclear material in sealed sources contained in
devices used in industrial measuring systems,
including x-ray fluorescence analyzers.............
D. All other special nuclear material licenses, 3,300
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(2)
E. Licenses or certificates for the operation of a 2,208,000
uranium enrichment facility........................
2. Source material:
A.(1) Licenses for possession and use of source 509,000
material for refining uranium mill concentrates to
uranium hexafluoride...............................
(2) Licenses for possession and use of source
material in recovery operations such as milling, in-
situ leaching, heap-leaching, ore buying stations,
ion exchange facilities and in processing of ores
containing source material for extraction of metals
other than uranium or thorium, including licenses
authorizing the possession of byproduct waste
material (tailings) from source material recovery
operations, as well as licenses authorizing the
possession and maintenance of a facility in a
standby mode:......................................
Class I facilities \4\.......................... 94,300
Class II facilities \4\......................... 79,000
Other facilities \4\............................ 29,900

[[Page 32476]]

(3) Licenses that authorize the receipt of byproduct 58,200
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 2A(2) or Category
2A(4)..............................................
(4) Licenses that authorize the receipt of byproduct 9,200
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 2A(2).....
B. Licenses that authorize only the possession, use 690
and/or installation of source material for
shielding..........................................
C. All other source material licenses............... 11,000
3. Byproduct material:
A. Licenses of broad scope for possession and use of 20,500
byproduct material issued under parts 30 and 33 of
this chapter for processing or manufacturing of
items containing byproduct material for commercial
distribution.......................................
B. Other licenses for possession and use of 5,300
byproduct material issued under part 30 of this
chapter for processing or manufacturing of items
containing byproduct material for commercial
distribution.......................................
C. Licenses issued under Secs. 32.72, 32.73, and/or 12,300
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 under 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......
D. Licenses and approvals issued under Secs. 32.72, 3,900
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 under 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 under part 40 of this chapter when
included on the same license.......................
E. Licenses for possession and use of byproduct 3,200
material in sealed sources for irradiation of
materials in which the source is not removed from
its shield (self-shielded units)...................
F. Licenses for possession and use of less than 5,800
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...................
G. Licenses for possession and use of 10,000 curies 20,900
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...................
H. Licenses issued under subpart A of part 32 of 3,200
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............................................
I. Licenses issued under subpart A of part 32 of 4,600
this chapter to distribute items containing
byproduct material or quantities of byproduct
material that do not require device evaluation to
persons exempt from the licensing requirements of
part 30 of this chapter, except for specific
licenses authorizing redistribution of items that
have been authorized for distribution to persons
exempt from the licensing requirements of part 30
of this chapter....................................
J. Licenses issued under subpart B of part 32 of 2,100
this chapter to distribute items containing
byproduct material that require sealed source and/
or device review to persons generally licensed
under part 31 of this chapter, except specific
licenses authorizing redistribution of items that
have been authorized for distribution to persons
generally licensed under part 31 of this chapter...
K. Licenses issued under subpart B of part 31 of 1,400
this chapter to distribute items containing
byproduct material or quantities of byproduct
material that do not require sealed source and/or
device review to persons generally licensed under
part 31 of this chapter, except specific licenses
authorizing redistribution of items that have been
authorized for distribution to persons generally
licensed under part 31 of this chapter.............
L. Licenses of broad scope for possession and use of 10,000
byproduct material issued under parts 30 and 33 of
this chapter for research and development that do
not authorize commercial distribution..............
M. Other licenses for possession and use of 4,400
byproduct material issued under part 30 of this
chapter for research and development that do not
authorize commercial distribution..................
N. Licenses that authorize services for other $4,800
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..........................
O. Licenses for possession and use of byproduct 12,500
material issued under part 34 of this chapter for
industrial radiography operations. This category
also includes the possession and use of source
material for shielding authorized under part 40 of
this chapter when authorized on the same license...
P. All other specific byproduct material licenses, 2,400
except those in Categories 4A through 9D...........
Q. Registration of devices generally licensed under \13\ N/A
part 31 of this chapter............................
4. Waste disposal and processing:
A. Licenses specifically authorizing the receipt of \5\ N/A
waste byproduct material, source material, or
special nuclear material from other persons for the
purpose of contingency storage or commercial land
disposal by the licensee; or licenses authorizing
contingency storage of low-level radioactive waste
at the site of nuclear power reactors; or licenses
for receipt of waste from other persons for
incineration or other treatment, packaging of
resulting waste and residues, and transfer of
packages to another person authorized to receive or
dispose of waste material..........................
B. Licenses specifically authorizing the receipt of 9,800
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............................

[[Page 32477]]

C. Licenses specifically authorizing the receipt of 7,400
prepackaged waste byproduct material, source
material, or special nuclear material from other
persons. The licensee will dispose of the material
by transfer to another person authorized to receive
or dispose of the material.........................
5. Well logging:
A. Licenses for possession and use of byproduct 8,800
material, source material, and/or special nuclear
material for well logging, well surveys, and tracer
studies other than field flooding tracer studies...
B. Licenses for possession and use of byproduct \5\ N/A
material for field flooding tracer studies.........
6. Nuclear laundries: A. Licenses for commercial 16,900
collection and laundry of items contaminated with
byproduct material, source material, or special nuclear
material...............................................
7. Medical licenses:
A. Licenses issued under parts 30, 35, 40, and 70 of 13,900
this chapter for human use of byproduct material,
source material, or special nuclear material in
sealed sources contained in teletherapy devices.
This category also includes the possession and use
of source material for shielding when authorized on
the same license...................................
B. Licenses of broad scope issued to medical 24,200
institutions or two or more physicians under 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\.................
C. Other licenses issued under parts 30, 35, 40, and 4,600
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\...............................
8. Civil defense: A. Licenses for possession and use of 1,100
byproduct material, source material, or special nuclear
material for civil defense activities..................
9. Device, product, or sealed source safety evaluation:
A. Registrations issued for the safety evaluation of 5,800
devices or products containing byproduct material,
source material, or special nuclear material,
except reactor fuel devices, for commercial
distribution.......................................
B. Registrations issued for the safety evaluation of 5,800
devices or products containing byproduct material,
source material, or special nuclear material
manufactured in accordance with the unique
specifications of, and for use by, a single
applicant, except reactor fuel devices.............
C. Registrations issued for the safety evaluation of 1,700
sealed sources containing byproduct material,
source material, or special nuclear material,
except reactor fuel, for commercial distribution...
D. Registrations issued for the safety evaluation of 590
sealed sources containing byproduct material,
source material, or special nuclear material,
manufactured in accordance with the unique
specifications of, and for use by, a single
applicant, except reactor fuel.....................
10. Transportation of radioactive material:
A. Certificates of Compliance or other package
approvals issued for design of casks, packages, and
shipping containers.
Spent Fuel, High-Level Waste, and plutonium air \6\ N/A
packages...........................................
Other Casks......................................... \6\ N/A
B. Quality assurance program approvals issued under
10 CFR part 71.
Users and Fabricators........................... 62,500
Users........................................... 6,100
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 \12\ N/A
10 CFR 72.210
14. Byproduct, source, or special nuclear material \7\ N/A
licenses and other approvals authorizing
decommissioning, decontamination, reclamation, or site
restoration activities under 10 CFR parts 30, 40, 70,
72, and 76 of this chapter.............................
15. Import and Export licenses.......................... \8\ N/A
16. Reciprocity......................................... \8\ N/A
17. Master materials licenses of broad scope issued to 306,000
Government agencies....................................
18. Department of Energy:
A. Certificates of Compliance....................... \10\ 1,107,000
B. Uranium Mill Tailing Radiation Control Act 654,000
(UMTRCA) activities................................
------------------------------------------------------------------------
\1\ Annual fees will be assessed based on whether a licensee held a
valid license with the NRC authorizing possession and use of
radioactive material during the current fiscal year. However, the
annual fee is waived for those materials licensees and holders of
certificates, registrations, and approvals who either filed for
termination of their licenses or approvals or filed for possession
only/storage licenses prior to October 1, 2000, and permanently ceased
licensed activities entirely by September 30, 2000. Annual fees for
licensees who filed for termination of a license, downgrade of a
license, or for a possession only license 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 1A(1) are
not subject to the annual fees for Category 1C and 1D 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, 72, or 76 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\ There are no existing NRC licenses in these fee categories. If NRC
issues a license for these categories, the Commission will consider
establishing an annual fee for this type of license.

[[Page 32478]]

\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 users of the
designs, certificates, and topical reports.
\7\ Licensees in this category are not assessed an annual fee because
they are charged an annual fee in other categories while they are
licensed to operate.
\8\ No annual fee is charged because it is not practical to administer
due to the relatively short life or temporary nature of the license.
\9\ Separate annual fees will not be assessed for pacemaker licenses
issued to medical institutions who also hold nuclear medicine licenses
under Categories 7B or 7C.
\10\ This includes Certificates of Compliance issued to DOE that are not
under the Nuclear Waste Fund.
\11\ See 10 CFR 171.15(c).
\12\ See 10 CFR 171.15(c).
\13\ No annual fee is charged for this category because the cost of the
general license registration program will be recovered through 10 CFR
part 170 fees.

(e) The activities comprising the surcharge are as follows:
(1) LLW disposal generic activities;
(2) Activities not directly attributable to an existing NRC
licensee or class(es) of licensees (e.g., international cooperative
safety program and international safeguards activities, support for the
Agreement State program, and 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 of nonprofit educational institutions and
reviews for 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).

15. In Sec. 171.19, paragraphs (b) and (d) are revised to read as
follows:

Sec. 171.19 Payment.

* * * * *
(b) Annual fees in the amount of $100,000 or more and described in
the Federal Register document issued under Sec. 171.13, and annual fees
for Class I and Class II uranium recovery licensees 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.
The NRC will adjust the fourth quarterly invoice 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. Licensees whose annual fee for the
previous fiscal year was less than $100,000 (billed on the anniversary
date of the license), and whose revised annual fee for the current
fiscal year is $100,000 or greater (subject to quarterly billing), will
be issued a bill upon publication of the final rule for the full amount
of the revised annual fee for the current fiscal year, less any
payments received for the current fiscal year based on the anniversary
date billing process.
* * * * *
(d) Annual fees of less than $100,000 must be paid as billed by the
NRC. Materials license annual fees that are less than $100,000, except
those for Class I and Class II uranium recovery licensees, 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 1C, 1D, 2A(2) Other Facilities, 2A(3), 2A(4), 2B, 2C, 3A
through 3P, 4B through 9D, 10A, and 10B.
* * * * *

Dated at Rockville, Maryland, this 31st day of May, 2001.
For the Nuclear Regulatory Commission.
Jesse L. Funches,
Chief Financial Officer.

Note: This Appendix will not appear in the code of Federal
Register.

Appendix A to this Final Rule--Regulatory Flexibility Analysis for the
Amendments to 10 CFR Part 170 (License Fees) and 10 CFR Part 171
(Annual Fees)

I. Background

The Regulatory Flexibility Act (RFA), as amended, (5 U.S.C. 601
et seq.) requires that agencies consider the impact of their
rulemakings on small entities and, consistent with applicable
statutes, consider alternatives to minimize these impacts on the
businesses, organizations, and government jurisdictions to which
they apply.
The NRC has established standards for determining which NRC
licensees qualify as small entities (10 CFR 2.801). These size
standards reflect the Small Business Administration's most common
receipts-based size standards and include a size standard for
business concerns that are manufacturing entities. The NRC uses the
size standards to reduce the impact of annual fees on small entities
by establishing a licensee's eligibility to qualify for a maximum
small entity fee. The small entity fee categories in Sec. 171.16(c)
of this final rule are based on the NRC's size standards.
From FY 1991 through FY 2000, the Omnibus Budget Reconciliation
Act (OBRA-90), as amended, required that the NRC recover
approximately 100 percent of its budget authority, less
appropriations from the Nuclear Waste Fund, by assessing license and
annual fees. The FY 2001 Energy and Water Development Appropriations
Act amended OBRA-90 to decrease the NRC's fee recovery amount for FY
2001 to 98 percent of the NRC's budget. Certain NRC costs related to
reviews and assistance provided to other Federal agencies and States
were excluded from the fee recovery requirement for FY 2001 by the
Energy and Water Development Appropriations Act. The amount to be
recovered for FY 2001 is approximately $453.3 million.
OBRA-90 requires that the schedule of charges established by
rule should fairly and equitably allocate the total amount to be
recovered from NRC's licensees and be assessed under the principle
that licensees who require the greatest expenditure of agency
resources pay the greatest annual charges. Since 1991, the NRC has
complied with OBRA-90 by issuing a final rule that amends its fee
regulations. These final rules have established the methodology used
by NRC in identifying and determining the fees to be assessed and
collected in any given fiscal year.
In FY 1995, the NRC announced that, in order to stabilize fees,
annual fees would be adjusted only by the percentage change (plus or
minus) in NRC's total budget authority, adjusted for changes in
estimated collections for 10 CFR part 170 fees, the number of
licensees paying annual fees, and as otherwise needed to assure the
billed amounts resulted in the required collections. The NRC
indicated that if there were a substantial change in the total NRC
budget authority or the magnitude of the budget allocated to a
specific class of licensees, the annual fee base would be
recalculated.
In FY 1999, the NRC concluded that there had been significant
changes in the allocation of agency resources among the various
classes of licensees and established rebaselined annual fees for FY
1999. The NRC stated in the final FY 1999 rule that to stabilize
fees it would continue to adjust the annual fees by the percent
change method established in FY 1995, unless there were a
substantial change in the total NRC budget or the magnitude of the
budget allocated to a specific class of licensees, in which case the
annual fee base would be reestablished.
After carefully considering all factors, including the changes
to the amount of the budget allocated to classes of licensees, and
weighing the complex issues related to both fairness and stability
of fees, the Commission has determined that it is appropriate to
rebaseline its part 171 annual fees in FY 2001. This rebaselining
results in reduced annual fees for a majority of the categories of

[[Page 32479]]

licenses, and increased annual fees for other categories.
The Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA) is intended to reduce regulatory burdens imposed by Federal
agencies on small businesses, nonprofit organizations, and
governmental jurisdictions. SBREFA also provides Congress with the
opportunity to review agency rules before they go into effect. Under
this legislation, the NRC annual fee rule is considered a ``major''
rule and must be reviewed by Congress and the Comptroller General
before the rule becomes effective. SBREFA also requires that an
agency prepare a guide to assist small entities in complying with
each rule for which a final regulatory flexibility analysis is
prepared. This Regulatory Flexibility Analysis (RFA) and the small
entity compliance guide (Attachment 1) have been prepared for the FY
2001 fee rule as required by law.

II. Impact on Small Entities

The fee rule results in substantial fees being charged to those
individuals, organizations, and companies that are licensed by the
NRC, including those licensed under the NRC materials program. The
comments received on previous proposed fee rules and the small
entity certifications received in response to previous proposed fee
rules indicate that NRC licensees qualifying as small entities under
the NRC's size standards are primarily materials licensees.
Therefore, this analysis will focus on the economic impact of the
annual fees on materials licensees. About 20 percent of these
licensees (approximately 1,400 licensees for FY 2000) have requested
small entity certification in the past.
The commenters on previous fee rulemakings consistently
indicated that the following results would occur if the proposed
annual fees were not modified.
1. Large firms would gain an unfair competitive advantage over
small entities. Commenters noted that small and very small companies
(``mom and pop'' operations) would find it more difficult to absorb
the annual fee than a large corporation or a high-volume type of
operation. In competitive markets, such as soils testing, annual
fees would put small licensees at an extreme competitive
disadvantage with their much larger competitors because the proposed
fees would be the same for a two-person licensee as for a large firm
with thousands of employees.
2. Some firms would be forced to cancel their licenses. A
licensee 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. Other licensees, especially well-loggers, noted
that the increased fees would force 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.
3. 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.
4. Some companies would have budget problems. Many medical
licensees noted that, along with reduced reimbursements, the
proposed increase of the existing fees and the introduction of
additional fees would significantly affect their budgets. Others
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 annual fees for materials licenses were first established
in 1991, 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.
To alleviate the significant impact of the annual fees on a
substantial number of small entities, the NRC considered the
following alternatives in accordance with the RFA as it developed
each of its fee rules since 1991.
1. Base fees on some measure of the amount of radioactivity
possessed by the licensee (e.g., number of sources).
2. Base fees on the frequency of use of the licensed radioactive
material (e.g., volume of patients).
3. Base fees on the NRC size standards for small entities.
The NRC has reexamined its previous evaluations of these
alternatives and continues to believe that establishment of a
maximum fee for small entities is the most appropriate and effective
option for reducing the impact of its fees on small entities.

III. Maximum Fee

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. In developing the maximum small entity
annual fee in FY 1991, the NRC examined its 10 CFR part 170
licensing and inspection fees and Agreement State fees for those fee
categories which were expected to have a substantial number of small
entities. Six Agreement States--Washington, Texas, Illinois,
Nebraska, New York, and Utah, were used as benchmarks in the
establishment of the maximum small entity annual fee in 1991.
Because small entities in those Agreement States were paying the
fees, the NRC concluded that these fees did not have a significant
impact on a substantial number of small entities. Therefore, those
fees were considered a useful benchmark in establishing the NRC
maximum small entity annual fee.
The NRC maximum small entity fee was established as an annual
fee only. In addition to the annual fee, NRC small entity licensees
were required to pay amendment, renewal and inspection fees. In
setting the small entity annual fee, NRC ensured that the total
amount small entities paid annually would not exceed the maximum
paid in the six benchmark Agreement States.
Of the six benchmark states, the maximum Agreement State fee of
$3,800 in Washington was used as the ceiling for the total fees.
Thus the NRC's small entity fee was developed to ensure that the
total fees paid by NRC small entities would not exceed $3,800. Given
the NRC's 1991 fee structure for inspections, amendments, and
renewals, a small entity annual fee established at $1,800 allowed
the total fee (small entity annual fee plus yearly average for
inspections, amendments and renewal fees) for all categories to fall
under the $3,800 ceiling.
In 1992, the NRC introduced a second, lower tier to the small
entity fee in response to concerns that the $1,800 fee, when added
to the license and inspection fees, still imposed a significant
impact on small entities with relatively low gross annual receipts.
For purposes of the annual fee, each small entity size standard was
divided into an upper and lower tier. Small entity licensees in the
upper tier continued to pay an annual fee of $1,800 while those in
the lower tier paid an annual fee of $400.
Based on the changes that had occurred since FY 1991, the NRC
re-analyzed its maximum small entity annual fees in FY 2000 and
determined that the small entity fees should be increased by 25
percent to reflect the increase in the average fees paid by other
materials licensees since FY 1991, as well as changes in the fee
structure for materials licensees. The structure of the fees that
NRC charged to its materials licensees changed during the period
between 1991 and 1999. Costs for materials license inspections,
renewals, and amendments, which were previously recovered through
part 170 fees for services, are now included in the part 171 annual
fees assessed to materials licensees. As a result of the re-
analysis, the maximum small entity annual fee was increased from
$1,800 to $2,300 in FY 2000. By increasing the maximum annual fee
for small entities from $1,800 to $2,300, the annual fee for many
small entities was reduced while at the same time materials
licensees, including small entities, would pay for most of the costs
attributable to them. The costs not recovered from small entities
are allocated to other materials licensees and to power reactors.
While reducing the impact on many small entities, the NRC
determined that the maximum annual fee of $2,300 for small entities
may continue to have a significant impact on materials licensees
with annual gross receipts in the thousands of dollars range.
Therefore, the NRC continued to provide a lower-tier small entity
annual fee for small entities with relatively low gross annual
receipts, and for manufacturing concerns and educational
institutions not State or publicly supported, with less than 35
employees. The NRC also increased the lower tier small entity fee by
the same percentage increase to the maximum small entity annual fee.
This 25 percent increase resulted in the lower tier small entity fee
increasing from $400 to $500 in FY 2000.
In the FY 2000 fee rule (65 FR 36946; June 12, 2000), the NRC
stated that it would re-

[[Page 32480]]

examine small entity fees each year that annual fees are
rebaselined. Accordingly, the NRC has re-examined the small entity
fees, and does not believe that a change to the small entity fees is
warranted for FY 2001. The revision to the small entity fees in FY
2000 was the first change to the fees since they were introduced in
FY 1991 and FY 1992. The revised fees were based on on the 25
percent increase in average total fees assessed to other materials
licensees since the small entity fees were first established and
changes that had occurred in the fee structure for materials
licensees over time. The NRC does not consider the approximately 13
percent decrease in the average FY 2001 fees for other licensees to
be significant enough to warrant another change to the small entity
fees this year.
Unlike the annual fees assessed to other licensees, the small
entity fees are not designed to recover the agency costs associated
with particular licensees. Rather, they are designed to provide some
fee relief for qualifying small entity licensees while at the same
time recovering from those licensees some of the agency's costs for
activities that benefit them. The costs not recovered from small
entities must be recovered from other licensees. The current small
entity fees of $500 and $2,300 provide considerable relief to many
small entities.
The NRC has declined to adopt the suggestion of one commenter on
the FY 2001 proposed fee rule that the NRC establish additional
tiers of annual fees for small entities to further reduce the
license fee burden on smaller entities. Reductions in the fees for
small entities must be paid by other NRC licensees in order to meet
the requirements of OBRA-90, as amended, that NRC must recover most
of its budget through fees. While establishing more tiers would
provide additional fee relief for some small entities, it would
result in an increase in the small entity subsidy other licensees
pay. For FY 2000, approximately 35 percent of the small entities
qualifying for reduced annual fees qualified for the lower tier
small entity fee. The NRC believes that maintaining a single lower
tier annual fee for small entities with relatively low gross annual
receipts of less than $350,000, for small governmental jurisdictions
with a population of less than 20,000, and for manufacturing
entities that have an average of less than 35 employees continues to
provide a further reduction of the impact of the annual fees to a
significant number of small entities.
In the future the NRC plans to re-examine the small entity fees
every two years, in the same years in which it conducts the biennial
review of fees as required by the CFO Act, instead of each year that
annual fees are rebaselined as indicated in the FY 2000 fee rule.
The annual fees for materials users now include the cost of
amendments, renewals, and inspections. However, at a maximum, annual
fees are rebaselined every three years, but may be rebaselined
earlier if warranted. Therefore, reviewing the small entity fees
only when the annual fees are rebaselined results in a variable
schedule for the re-examinations and any potential changes to the
fees. Re-examining the small entity annual fees every two years, on
the same schedule as the biennial review under the CFO Act, provides
a routine, predictable schedule and allows licensees to anticipate
when potential changes to these fees might occur. Therefore, the NRC
plans to re-examine the small entity fees in FY 2003.

IV. Summary

The NRC has determined that 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 recover 98 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 analysis,
the NRC concludes that a maximum annual fee of $2,300 for small
entities and a lower-tier small entity annual fee of $500 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 2000 fee rule remain valid for FY
2001.

Attachment 1 to Appendix A--Nuclear Regulatory Commission Small, Entity
Compliance Guide, Fiscal Year 2001

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), as amended, is considered a
``major'' rule under SBREFA. Therefore, in compliance with the law,
this compliance guide has been prepared to assist NRC material
licensees in complying with the FY 2001 fee rule.
Licensees may use this guide to determine whether they qualify
as a small entity under NRC regulations and are eligible to pay
reduced FY 2001 annual fees assessed under 10 CFR part 171. The NRC
has established two tiers of separate annual fees for those
materials licensees who qualify as small entities under NRC's size
standards.
Licensees who meet NRC's size standards for a small entity must
submit a completed NRC Form 526 ``Certification of Small Entity
Status for the Purposes of Annual Fees Imposed Under 10 CFR part
171'' to qualify for the reduced annual fee. Effective with the
final FY 2001 fee rule, the NRC will phase out sending NRC Form 526
with each materials license annual fee invoice. This form can be
accessed on the NRC's external web site at http://www.nrc.gov. The
form can then be accessed by selecting ``Planning & Financial
Management'' and then selecting ``NRC License Fee Program'' and
under ``Forms'' selecting NRC Form 526. Licensees who cannot access
the NRC's external web site may obtain NRC Form 526 through the
local point of contact listed in the NRC's ``Materials Annual Fee
Billing Handbook,'' NUREG/BR-0238, which is enclosed with each
annual fee billing. Alternatively, the form may be obtained by
calling the fee staff at 301-415-7554, or by e-mailing the fee staff
at fees@nrc.gov. The completed form, 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, to the address indicated on the invoice. Failure
to file the NRC small entity certification Form 526 in a timely
manner may result in the denial of any refund that might otherwise
be due.

NRC Definition of Small Entity

The NRC has defined a small entity for purposes of compliance
with its regulations (10 CFR 2.810) as follows:
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.
---------------------------------------------------------------------------

To further assist licensees in determining if they qualify as a
small entity, we are providing the following guidelines, which are
based on the Small Business Administration regulations.
1. A small business concern is an independently owned and
operated entity which is not considered dominant in its field of
operations.
2. The number of employees means the total number of employees
in the parent company, any subsidiaries and/or affiliates, including
both foreign and domestic locations (i.e., not solely the number of

[[Page 32481]]

employees working for the licensee or conducting NRC licensed
activities for the company).
3. Gross annual receipts includes all revenue received or
accrued from any source, including receipts of the parent company,
any subsidiaries and/or affiliates, and account for both foreign and
domestic locations. Receipts include all revenues from sales of
products and services, interest, rent, fees, and commissions, from
whatever sources derived (i.e., not solely receipts from NRC
licensed activities).
4. A licensee who is a subsidiary of a large entity does not
qualify as a small entity.

NRC Small Entity Fees

In 10 CFR 171.16 (c), the NRC has established two tiers of small
entity fees for licensees that qualify under the NRC's size
standards. The 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.............................. $2,300
Less than $350,000.................................. 500
Manufacturing entities that have an average of 500
employees or less:
35 to 500 employees................................. 2,300
Less than 35 employees.............................. 500
Small Governmental Jurisdictions (Including publicly
supported educational institutions) (Population):
20,000 to 50,000.................................... 2,300
Less than 20,000.................................... 500
Educational Institutions that are not State or Publicly
Supported, and have 500 Employees or Less:
35 to 500 employees................................. 2,300
Less than 35 employees.............................. 500
------------------------------------------------------------------------

To pay a reduced annual fee, a licensee must use NRC Form 526.
Effective with the final FY 2001 fee rule, the NRC is phasing out
mailing NRC Form 526 with each annual fee invoice issued to
materials licensees. Instead, licensees can access this form on the
NRC's external web site at http://www.nrc.gov. The form can then be
accessed by selecting ``Planning & Financial Management'' and then
selecting ``NRC License Fee Program'' and under ``Forms'' selecting
NRC Form 526. Those licensees that qualify as a ``small entity''
under the NRC size standards at 10 CFR 2.810 would be able to
complete the form in accordance with the instructions provided, and
submit the completed form and the appropriate payment to the address
provided on the invoice. Licensees who cannot access the NRC's
external web site may obtain NRC Form 526 through the local point of
contact listed in the NRC's ``Materials Annual Fee Billing
Handbook,'' NUREG/BR-0238, which is enclosed with each annual fee
invoice. Alternatively, licensees may obtain the form by calling the
fee staff at 301-415-7544, or by e-mailing us at fees@nrc.gov.

Instructions for Completing NRC Small Entity 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 must be
entered if 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 for which the licensee
qualifies as a small entity. Check only one box. Note the following:
(1) A licensee who is a subsidiary of a large entity does not
qualify as a small entity.
(2) The size standards apply to the licensee, including all
parent companies and affiliates--not the individual authorized users
listed in the license or the particular segment of the organization
that uses licensed material.
(3) Gross annual receipts means 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 consolidated return filed
with the IRS); and amounts collected for another entity by a travel
agent, real estate agent, advertising agent, or conference
management service provider.
(4) The owner of the entity, or an official empowered to act on
behalf of the entity, must sign and date the small entity
certification.
The NRC sends invoices to its licensees for the full annual fee,
even though some entities qualify for reduced fees as a small
entity. Licensees who qualify as a small entity and file NRC Form
526, which certifies eligibility for small entity fees, may pay the
reduced fee, which for a full year is either $2,300 or $500
depending on the size of the entity, for each fee category shown on
the invoice. Licensees granted a license during the first six months
of the fiscal year, and licensees who file for termination or for a
possession only license and permanently cease licensed activities
during the first six months of the fiscal year, pay only 50 percent
of the annual fee for that year. Such an invoice states the ``Amount
Billed Represents 50% Proration.'' This means the amount due from a
small entity is not the prorated amount shown on the invoice, but
rather one-half of the maximum annual fee shown on NRC Form 526 for
the size standard under which the licensee qualifies, resulting in a
fee of either $1150 or $250 for each fee category billed, instead of
the full small entity annual fee of $2,300 or $500.
A new small entity form (NRC Form 526) must be filed with the
NRC each fiscal year to qualify for reduced fees in that year.
Because a licensee's ``size,'' or the size standards, may change
from year to year, the invoice reflects the full fee and a new Form
526 must be completed and returned in order for the fee to be
reduced to the small entity fee amount. Licensees will not be issued
a new invoice for the reduced amount. The completed NRC Form 526,
the payment of 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 at
the address indicated on the invoice.
If you have questions regarding the NRC's annual fees, please
call the license fee staff at 301-415-7554, e-mail the fee staff at
fees@nrc.gov, or write to the U.S. Nuclear Regulatory Commission,
Washington, DC 20555, Attention: Office of the Chief Financial
Officer.
False certification of small entity status could result in civil
sanctions being imposed by the NRC under the Program Fraud Civil
Remedies Act, 31 U.S.C. 3801 et. seq. NRC's implementing regulations
are found at 10 CFR part 13.

[FR Doc. 01-14856 Filed 6-13-01; 8:45 am]
BILLING CODE 7590-01-P

Notices For
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994

Revision of Fee Schedules; Fee Recovery for FY 2001

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