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: March 28, 2001 (Volume 66, Number 60)]
[Proposed Rules]
[Page 16981-17006]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28mr01-23]

[[Page 16981]]

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Part II

Nuclear Regulatory Commission

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10 CFR Parts 150, 170 and 171

Revision of Fee Schedules; Fee Recovery for FY 2001; Proposed Rule

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NUCLEAR REGULATORY COMMISSION

10 CFR Parts 150, 170 and 171

RIN 3150-AG73

Revision of Fee Schedules; Fee Recovery for FY 2001

AGENCY: Nuclear Regulatory Commission.

ACTION: Proposed rule.

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SUMMARY: The Nuclear Regulatory Commission (NRC) is proposing to amend
the licensing, inspection, and annual fees charged to its applicants
and licensees. The proposed amendments are necessary to implement 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.

DATES: The comment period expires April 27, 2001. Comments received
after this date will be considered if it is practical to do so, but the
NRC is able to ensure only that comments received on or before this
date will be considered. Because OBRA-90 requires that NRC collect the
FY 2001 fees by September 30, 2001, requests for extensions of the
comment period will not be granted.

ADDRESSES: Mail written comments to: Secretary, U.S. Nuclear Regulatory
Commission, Washington, DC 20555-0001, ATTN: Rulemakings and
Adjudications Staff. Hand deliver comments to: 11555 Rockville Pike,
Rockville, Maryland 20852, between 7:30 am and 4:15 pm Federal
workdays. (Telephone 301-415-1678).
Comments may also be submitted via the NRC's interactive rulemaking
Website (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. Comments
received may also be viewed and downloaded electronically via this
interactive rulemaking Website.
With the exception of restricted information, documents created or
received at the NRC after November 1, 1999, are also 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.
In addition to being available in ADAMS, the agency workpapers that
support these proposed changes to 10 CFR Parts 170 and 171 may also be
examined during the 30-day comment period 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. Proposed Action
III. Plain Language
IV. Voluntary Consensus Standards
V. Environmental Impact: Categorical Exclusion
VI. Paperwork Reduction Act Statement
VII. Regulatory Analysis
VIII. Regulatory Flexibility Analysis
IX. Backfit Analysis

I. Background

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 Nuclear Waste Fund (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, $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 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. Proposed Action

The NRC is proposing to amend 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
$487.4 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. 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 $112.1 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

[[Page 16983]]

2000 invoices. The remaining $337.7 million would 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....................................... $487.4
Less NWF................................................. -21.6
Less General Fund........................................ -3.2
Balance.............................................. 462.6
Fee Recovery Rate (percent) 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.......... -112.1
----------
Part 171 Fee Collections Required............................ -338.1
==========
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....................... 337.7
------------------------------------------------------------------------

The final FY 2001 fee rule will be a ``major'' final action as
defined by the Small Business Regulatory Enforcement Fairness Act of
1996. Therefore, the NRC's fees for FY 2001 would become effective 60
days after publication of the final rule in the Federal Register. The
NRC will send an invoice for the amount of the annual fee to reactors
and major fuel cycle facilities upon publication of the FY 2001 final
rule. For these licensees, payment would 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 would 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 would be billed for the
annual fee at the FY 2001 annual fee rate during the anniversary month
of the license, and payment would be due on the date of the invoice.
As a matter of courtesy, the NRC plans to continue mailing the
proposed fee rules to all licensees, although, 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. It is our intent to publish the final rule in late May or
early June of 2001. 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 proposing to make changes to 10 CFR Parts 170 and 171 as
discussed in Sections A and B below.

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

The NRC is proposing to revise the hourly rates used to calculate
fees and to adjust 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 proposing
to eliminate 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 include the costs for these revisions in the application
fees assessed for the initial Form 241. The NRC is also proposing to
establish an annual registration fee of $450 to be assessed for Part 31
general licensees required to register certain types of generally
licensed devices. These proposed revisions are further discussed below.
The proposed amendments are as follows:
1. Hourly Rates
The NRC is proposing to revise the two professional hourly rates
for NRC staff time established in Sec. 170.20. These proposed rates
would be 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 proposed
hourly rate for the reactor program is $150 per hour ($266,997 per
direct FTE). This rate would be applicable to all activities for which
fees are assessed under Sec. 170.21 of the fee regulations. The
proposed hourly rate for the nuclear materials and nuclear waste
program is $144 per hour ($255,563 per direct FTE). This rate would be
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 proposed 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

[[Page 16984]]

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 to be Included in Hourly Rates
------------------------------------------------------------------------
Reactor Materials
materials program
------------------------------------------------------------------------
Direct Program Salaries & Benefits............ $107.8M $31.3M
Overhead Salaries & Benefits, Program Travel 56.1M 15.0M
and Other Support............................
Allocated Agency Management and Support....... 100.8M 28.5M
-------------------------
Subtotal.................................. 264.7M 74.8M
Less offsetting receipts...................... -0.1M ...........
-------------------------
Total Budget Included in Hourly Rate...... 264.6M 74.8M
Program Direct FTEs........................... 991.0 292.7
Rate per Direct FTE........................... 266,997 255,563
Professional Hourly Rate (Rate per direct FTE 150 144
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 would be $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 would be $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 proposing to adjust 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 proposed 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 proposed licensing fees are based on the revised 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 proposed 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 proposed change to Category 16 is discussed
in item 3. below. Applications filed on or after the effective date of
the final rule would be subject to the revised fees in this proposed
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 proposing 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

[[Page 16985]]

activities different from those submitted on the initial NRC Form 241.
In FY 2000, only $23,000 was collected for 115 revisions.
The NRC is proposing to eliminate the revision fees and include the
costs for processing them in the fee assessed for each initial
reciprocity application. Under this proposal, the reciprocity
applicants would no longer be required to submit payments with their
revision requests, and the NRC's administrative burden of processing
the revisions for fee collection purposes would be eliminated. This
proposed change plus the increase in the hourly rate would result in an
increase in the application fee, from $1,200 to $1,400. The costs of
the reciprocity program would 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) would also be made to
reflect this proposed change.
4. Fees for General License Registrations
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 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. Based on the estimated number of registrants, current resource
estimates, and the FY 2001 FTE rate, the proposed registration fee is
$450. The registration fee would be imposed beginning with the first
re-registration of devices currently in use. The registration fee would
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 the FY 2001 final fee rule will not change until the
next biennial review of fees in FY 2003.
5. Fee Waivers
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 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. To clarify the intent of the fee
waiver provision, 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 would
be redesignated as criteria (a), (b), and (c).
In summary, the NRC is proposing to amend 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).

[[Page 16986]]

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 proposes to revise the annual fees for FY 2001 and revise
the current process for providing NRC Form 526 to licensees for
purposes of certifying that they qualify as a small entity. The
proposed amendments are as follows.
1. Annual Fees
The NRC is proposing 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 stability of fees, the Commission has determined that it is
appropriate to rebaseline the annual fees this year. Rebaselining fees
would result 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 would result in a more precise
relationship between annual fees and NRC costs of providing services.
It thus would constitute one means to fairly and equitably allocate
costs among the NRC's licensees.
The annual fees in Secs. 171.15 and 171.16 would be revised for FY
2001 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 $337.7 million, compared
to $341.0 million for FY 2000.
The proposed FY 2001 annual fees would increase for some categories
of licensees and decrease for others from the previous year. The
decreases in annual fees range from approximately 0.2 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.
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
would 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 would be
allocated to quality assurance approvals authorizing use only than in
the past.
Table III below shows the proposed rebaselined annual fees for FY
2001 for representative categories of licensees.

Table III.--Rebaselined Annual Fees for FY 2001
------------------------------------------------------------------------
Proposed FY 2001
Class of licensees annual fee
------------------------------------------------------------------------
Power Reactors (including Spent Fuel Storage/Reactor $2,809,000
Decommissioning annual fee).........................
Spent Fuel Storage/Reactor Decommissioning........... 275,000
Nonpower Reactors.................................... 74,000
High Enriched Uranium Fuel Facility.................. 3,551,000
Low Enriched Uranium Fuel Facility................... 1,191,000
UF6 Conversion Facility.............................. 510,000
Uranium Mills........................................ 94,300
Transportation:
Users/Fabricators................................ 62,500
Users Only....................................... 6,100
Typical Materials Users:
Radiographers.................................... 12,500

[[Page 16987]]

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 will be 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
Category of costs budgeted
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
d. Site decommissioning management plan activities not 7.3
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 institutions 8.1
b. Licensing and inspection activities associated with 3.9
other Federal agencies................................
c. Costs not recovered from small entities under 10 CFR 5.6
171.16(c).............................................
3. Activities supporting NRC operating licensees and
others:
a. Regulatory support to Agreement States.............. 14.4
b. Generic decommissioning/reclamation (except those 3.4
related to power reactors)............................
------------
Total surcharge costs.............................. 57.6
Less 2 percent of NRC's FY 2001 total budget (minus NWF and -9.3
General Fund amounts).....................................
------------
Total Surcharge Costs to be Recovered.................. 48.3
------------------------------------------------------------------------

As shown in Table IV, $48.3 million would be the total surcharge
cost allocated to the various classes of licensees for FY 2001. The NRC
would continue 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 would continue to allocate the LLW
surcharge costs based on the volume of LLW disposed of by certain
classes of licensees. The proposed surcharge costs allocated to each
class would be included in the annual fee assessed to each licensee.
The FY 2001 proposed surcharge costs that would be allocated to each
class of licensees are shown in Table V.

Table V.--Allocation of Surcharge
[Dollar amounts in millions]
----------------------------------------------------------------------------------------------------------------
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 workpapers which support this proposed rule show in detail
the allocation of NRC's

[[Page 16988]]

budgeted resources for each class of licensee and how the fees are
calculated. The workpapers are available electronically at the NRC's
Public Electronic Reading Room on the Internet at Website address
http://www.gov/NRC/ADAMS/index.html. During the 30-day public comment
period, the workpapers 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 will be a ``major'' final action as
defined by the Small Business Regulatory Enforcement Fairness Act of
1996, the NRC's fees for FY 2001 would become effective 60 days after
publication of the final rule in the Federal Register. The NRC will
send an invoice for the amount of the annual fee upon publication of
the FY 2001 final rule to reactors and major fuel cycle facilities. For
these licensees, payment would 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 would 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 would be
billed for the annual fee at the FY 2001 rate during the anniversary
month of the license, and payment would 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 $17.6 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). 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 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 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 (33.1%) 76 (54.7%)
Enrichment...................................................... 2 70 (25.5%) 34 (24.5%)
Low Enriched Uranium Fuel....................................... 4 88 (32.0%) 24 (17.3%)
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 $17.6 million total annual fee amount for the fuel
facility class results in the proposed annual fees for each licensee
within the subcategories of this class summarized in the table below.

Table VII.--Proposed Annual Fees for Fuel Facilities
------------------------------------------------------------------------
Proposed FY 2001
Facility type Annual Fee
------------------------------------------------------------------------
High Enriched Uranium Fuel........................... $3,551,000
Uranium Enrichment................................... 2,211,000
Low Enriched Uranium................................. 1,191,000
UF6 Conversion....................................... 510,000
Limited Operations Facility.......................... 468,000
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 would 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 would 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).

[[Page 16989]]

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 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 would 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 proposed annual fees.

Table IX.--Annual Fees for Uranium Recovery Licenses
------------------------------------------------------------------------
Proposed
Facility type FY 2001
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 proposed FY 2001 annual fees for Class I and Class II
facilities (conventional mills and in-situ mills), would drop below the
$100,000 threshold currently established in Sec. 171.19 for quarterly
billing, and 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 proposing to revise Sec. 171.19 to establish a
quarterly billing schedule for the Class I and Class II licensees,
regardless of the annual fee amount. This would 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 $263.5 million in budgeted
costs to be recovered through FY 2001 annual fees assessed to operating
power reactors would be divided equally among the 104 operating power
reactors. This results in a proposed FY 2001 annual fee of $2,534,000
per reactor. Additionally, each operating reactor would be assessed the
proposed spent fuel storage/reactor decommissioning annual fee, which
for FY 2001 is $275,000. This would result in a total FY 2001 annual
fee of $2,809,000 for each operating power reactor.
d. Spent Fuel Storage/Reactor Decommissioning. For FY 2001,
budgeted costs of approximately $33.3 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 who do not have spent fuel on site, and to Part 72
licensees who do not hold a Part 50 license. The costs would be divided
equally among the 121 licensees, resulting in a proposed FY 2001 annual
fee of $275,000 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 would be divided equally
among the four non-power reactors subject to annual fees. This results
in a proposed 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 would be divided equally among the three licensees who have
a specific license for receipt and processing of source material. The
result is a proposed 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

[[Page 16990]]

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 class. The proposed 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 would 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 would be 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 would
be allocated only to the 36 quality assurance plans authorizing use and
design/fabrication. This results in a proposed annual fee of $6,100 for
each of the holders of quality assurance plans that authorize use only,
and a proposed annual fee of $62,500 for each of the holders of quality
assurance plans that authorize use and design/fabrication.
3. 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. The NRC revised the small entity fees in FY
2000, for the first time since they were introduced in FY 1991 and FY
1992, 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.
4. 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 is proposing
to discontinue mailing the form with each annual fee invoice. Instead,
licensees would 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
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. For licensees who cannot access
the NRC's external web site, NRC Form 526 could 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 is proposing to--
1. Establish new rebaselined annual fees for FY 2001;
2. Revise Sec. 171.16(c)(2) to eliminate the mailing of NRC Form
526 with the annual fee invoice to individual materials licensees;
3. Revise Sec. 171.19 to establish a quarterly annual fee billing
schedule for Class I and Class II uranium recovery licensees; and
4. Re-examine the small entity fees every two years, on the same
schedule as the biennial review of fees required by the CFO's Act.

III. Plain Language

The Presidential Memorandum dated June 1, 1998, entitled, ``Plain
Language in Government Writing,'' directed that the Federal
government's writing be in

[[Page 16991]]

plain language (63 FR 31883; June 10, 1998). The NRC requests comments
on this proposed rule specifically with respect to the clarity and
effectiveness of the language used. Comments on the language used
should be sent to the NRC as indicated under the ADDRESSES heading.

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

VII. Regulatory Analysis

With respect to 10 CFR Part 170, this proposed rule was developed
pursuant to Title V of the Independent Offices Appropriation Act of
1952 (IOAA) (31 U.S.C. 9701) and the Commission's fee guidelines. When
developing these guidelines the Commission took into account guidance
provided by the U.S. Supreme Court on March 4, 1974, in National Cable
Television Association, Inc. v. United States, 415 U.S. 36 (1974) and
Federal Power Commission v. New England Power Company, 415 U.S. 345
(1974). In these decisions, the Court held that the IOAA authorizes an
agency to charge fees for special benefits rendered to identifiable
persons measured by the ``value to the recipient'' of the agency
service. The meaning of the IOAA was further clarified on December 16,
1976, by four decisions of the U.S. Court of Appeals for the District
of Columbia: National Cable Television Association v. Federal
Communications Commission, 554 F.2d 1094 (D.C. Cir. 1976); National
Association of Broadcasters v. Federal Communications Commission, 554
F.2d 1118 (D.C. Cir. 1976); Electronic Industries Association v.
Federal Communications Commission, 554 F.2d 1109 (D.C. Cir. 1976); and
Capital Cities Communication, Inc. v. Federal Communications
Commission, 554 F.2d 1135 (D.C. Cir. 1976). 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 proposed 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 $481.9 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 proposed rule establishes the schedules of fees that are
necessary to implement the Congressional mandate for FY 2001. The
proposed rule would result in increases in the annual fees charged to
certain licensees and holders

[[Page 16992]]

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 proposed rule.
The Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA) was signed into law on March 29, 1996. The SBREFA requires all
Federal agencies to prepare a written compliance guide for each rule
for which the agency is required by 5 U.S.C. 604 to prepare a
regulatory flexibility analysis. Therefore, in compliance with the law,
Attachment 1 to the Regulatory Flexibility Analysis 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 proposed rule and that a backfit analysis is not
required for this proposed rule. The backfit analysis is not required
because these proposed amendments do not require the modification of or
additions to systems, structures, components, or the design of a
facility or the design approval or manufacturing license for a facility
or the procedures or organization required to design, construct or
operate a facility.

List of Subjects

10 CFR Part 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.

10 CFR Part 171

Annual charges, Byproduct material, Holders of certificates,
Registrations, Approvals, Intergovernmental relations, Non-payment
penalties, Nuclear materials, Nuclear power plants and reactors, Source
material, Special nuclear material.
For the reasons set out in the preamble and under the authority of
the Atomic Energy Act of 1954, as amended, and 5 U.S.C. 553, the NRC is
proposing to adopt the following amendments to 10 CFR Parts 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 a new 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:

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 10 CFR 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 Section 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

[[Page 16993]]

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,
10 CFR 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.

Schedule of Facility Fees
[See footnotes at end of table]
------------------------------------------------------------------------
Facility categories and type of fees Fees1, 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,
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 updating the fee schedule 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.

[[Page 16994]]

9. Section 170.31 is revised to read as follows:

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

Applicants for materials licenses, import and export licenses, and
other regulatory services, and holders of materials licenses or import
and export licenses shall pay fees for the following categories of
services. This schedule includes fees for health and safety and
safeguards inspections where applicable.

Schedule of Materials Fees
[See footnotes at end of table]
------------------------------------------------------------------------
Category of materials licenses and type of fees 1 Fee 2, 3
------------------------------------------------------------------------
1. Special nuclear material:
A. Licenses for possession and use of 200 grams or
more of plutonium in unsealed form or 350 grams or
more of contained U-235 in unsealed form or 200
grams or more of U-233 in unsealed form. This
includes applications to terminate licenses as
well as licenses authorizing possession only:
Licensing and Inspection....................... Full Cost
B. Licenses for receipt and storage of spent fuel
at an independent spent fuel storage installation
(ISFSI):
Licensing and inspection....................... Full Cost
C. Licenses for possession and use of special
nuclear material in sealed sources contained in
devices used in industrial measuring systems,
including x-ray fluorescence analyzers: 4
Application.................................... $660
D. All other special nuclear material licenses,
except licenses authorizing special nuclear
material in unsealed form in combination that
would constitute a critical quantity, as defined
in Sec. 150.11 of this chapter, for which the
licensee shall pay the same fees as those for
Category 1A: 4
Application.................................... 1,300
E. Licenses or certificates for construction and
operation of a uranium enrichment facility:
Licensing and inspection....................... Full Cost
2. Source material:
A. (1) Licenses for possession and use of source
material in recovery operations such as milling,
in-situ leaching, heap-leaching, refining uranium
mill concentrates to uranium hexafluoride, ore
buying stations, 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....................... Full Cost
(2) Licenses that authorize the receipt of
byproduct material, as defined in section 11e(2)
of the Atomic Energy Act, from other persons for
possession and disposal except those licenses
subject to fees in Category 2A(1):
Licensing and inspection....................... Full Cost
(3) Licenses that authorize the receipt of
byproduct material, as defined in section
11e(2) of the Atomic Energy Act, from
other persons for possession and disposal
incidental to the disposal of the uranium
waste tailings generated by the licensee's
milling operations, except those licenses
subject to the fees in Category 2A(1):....
Licensing and inspection....................... Full Cost
B. Licenses which authorize the possession, use,
and/or installation of source material for
shielding:
Application.................................... 160
C. All other source material licenses:
Application.................................... 5,700
3. Byproduct material:
A. Licenses of broad scope for the possession and
use 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.................................... 6,700
B. Other licenses for possession and use of
byproduct material issued under part 30 of this
chapter for processing or manufacturing of items
containing byproduct material for commercial
distribution:
Application.................................... 2,200
C. Licenses issued under Secs. 32.72, 32.73, and/
or 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.................................... 8,700
D. Licenses and approvals issued under Secs.
32.72, 32.73, and/or 32.74 of this chapter
authorizing distribution or redistribution of
radiopharmaceuticals, generators, reagent kits,
and/or sources or devices not involving processing
of byproduct material. This category includes
licenses issued 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.................................... 2,400
E. Licenses for possession and use of byproduct
material in sealed sources for irradiation of
materials in which the source is not removed from
its shield (self-shielded units):
Application.................................... 1,700
F. Licenses for possession and use of less than
10,000 curies of byproduct material in sealed
sources for irradiation of materials in which the
source is exposed for irradiation purposes. This
category also includes underwater irradiators for
irradiation of materials where the source is not
exposed for irradiation purposes.
Application.................................... 3,400
G. Licenses for possession and use of 10,000 curies
or more of byproduct material in sealed sources
for irradiation of materials in which the source
is exposed for irradiation purposes. This category
also includes underwater irradiators for
irradiation of materials where the source is not
exposed for irradiation purposes.
Application.................................... 8,000
------------------------------------------------------------------------

[[Page 16995]]

Schedule of Materials Fees--Continued
[See footnotes at end of table]
------------------------------------------------------------------------
Category of materials licenses and type of fees 1 Fee 2, 3
------------------------------------------------------------------------
H. Licenses issued under subpart A of part 32 of
this chapter to distribute items containing
byproduct material that require device review to
persons exempt from the licensing requirements of
part 30 of this chapter. 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.................................... 2,300
I. Licenses issued under subpart A of part 32 of
this chapter to distribute items containing
byproduct material or quantities of byproduct
material that do not require device evaluation to
persons exempt from the licensing requirements of
part 30 of this chapter.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.................................... 3,400
J. Licenses issued under subpart B of part 32 of
this chapter to distribute items containing
byproduct material that require sealed source and/
or device review to persons generally licensed
under part 31 of this chapter. 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.................................... 1,000
K. Licenses issued under subpart B of part 32 of
this chapter to distribute items containing
byproduct material or quantities of byproduct
material that do not require sealed source and/or
device review to persons generally licensed under
part 31 of this chapter. 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.................................... 590
L. Licenses of broad scope for possession and use
of byproduct material issued under parts 30 and 33
of this chapter for research and development that
do not authorize commercial distribution:
Application.................................... 5,700
M. Other licenses for possession and use of
byproduct material issued under part 30 of this
chapter for research and development that do not
authorize commercial distribution:
Application.................................... 2,500
N. Licenses that authorize services for other
licensees, except:
(1) Licenses that authorize only calibration
and/or leak testing services are subject to
the fees specified in fee Category 3P; and
(2) Licenses that authorize waste disposal
services are subject to the fees specified in
fee Categories 4A, 4B, and 4C:
Application................................ 2,600
O. Licenses for possession and use of byproduct
material issued under part 34 of this chapter for
industrial radiography operations:
Registration................................... 4,200
P. All other specific byproduct material licenses,
except those in Categories 4A through 9D:
Application.................................... 1,300
Q. Registration of a device(s) generally licensed
under part 31:
Application.................................... 450
4. Waste disposal and processing:
A. Licenses specifically authorizing the receipt of
waste byproduct material, source material, or
special nuclear material from other persons for
the purpose of contingency storage or commercial
land disposal by the licensee; or licenses
authorizing contingency storage of low-level
radioactive waste at the site of nuclear power
reactors; or licenses for receipt of waste from
other persons for incineration or other treatment,
packaging of resulting waste and residues, and
transfer of packages to another person authorized
to receive or dispose of waste material:
Licensing and inspection....................... Full Cost
B. Licenses specifically authorizing the receipt of
waste byproduct material, source material, or
special nuclear material from other persons for
the purpose of packaging or repackaging the
material. The licensee will dispose of the
material by transfer to another person authorized
to receive or dispose of the material:
Application.................................... 1,700
C. Licenses specifically authorizing the receipt of
prepackaged waste byproduct material, source
material, or special nuclear material from other
persons. The licensee will dispose of the material
by transfer to another person authorized to
receive or dispose of the material:
Application.................................... 2,600
5. Well logging:
A. Licenses for possession and use of byproduct
material, source material, and/or special nuclear
material for well logging, well surveys, and
tracer studies other than field flooding tracer
studies:
Application.................................... 5,600
B. Licenses for possession and use of byproduct
material for field flooding tracer studies:
Licensing...................................... Full Cost
6. Nuclear laundries:
A. Licenses for commercial collection and laundry
of items contaminated with byproduct material,
source material, or special nuclear material:
Application.................................... 11,500
7. Medical licenses:
A. Licenses issued under parts 30, 35, 40, and 70
of this chapter for human use of byproduct
material, source material, or special nuclear
material in sealed sources contained in
teletherapy devices:
Application.................................... 6,300
------------------------------------------------------------------------

[[Page 16996]]

Schedule of Materials Fees--Continued
[See footnotes at end of table]
------------------------------------------------------------------------
Category of materials licenses and type of fees 1 Fee 2, 3
------------------------------------------------------------------------
B. Licenses of broad scope issued to medical
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.................................... 4,500
C. Other licenses issued under parts 30, 35, 40,
and 70 of this chapter for human use of byproduct
material, source material, and/or special nuclear
material, except licenses for byproduct material,
source material, or special nuclear material in
sealed sources contained in teletherapy devices:
Application.................................... 2,200
8. Civil defense:
A. Licenses for possession and use of byproduct
material, source material, or special nuclear
material for civil defense activities:
Application.................................... 330
9. Device, product, or sealed source safety evaluation:
A. Safety evaluation of devices or products
containing byproduct material, source material, or
special nuclear material, except reactor fuel
devices, for commercial distribution:
Application--each device....................... 5,400
B. Safety evaluation of devices or products
containing byproduct material, source material, or
special nuclear material manufactured in
accordance with the unique specifications of, and
for use by, a single applicant, except reactor
fuel devices:
Application--each device....................... 5,400
C. Safety evaluation of sealed sources containing
byproduct material, source material, or special
nuclear material, except reactor fuel, for
commercial distribution:
Application--each source....................... 1,600
D. Safety evaluation of sealed sources containing
byproduct material, source material, or special
nuclear material, manufactured in accordance with
the unique specifications of, and for use by, a
single applicant, except reactor fuel:
Application--each source....................... 550
10. Transportation of radioactive material:
A. Evaluation of casks, packages, and shipping
containers:
Licensing and inspections...................... Full Cost
B. Evaluation of 10 CFR part 71 quality assurance
programs:
Application.................................... 650
Inspections.................................... Full Cost
11. Review of standardized spent fuel facilities:
Licensing and inspection........................... Full Cost
12. Special projects: 5
Approvals and preapplication/Licensing activities.. Full Cost
Inspections........................................ Full Cost
13. A. Spent fuel storage cask Certificate of
Compliance:
Licensing...................................... Full Cost
B. Inspections related to spent fuel storage cask Full Cost
Certificate of Compliance.........................
C. Inspections related to storage of spent fuel Full Cost
under Sec. 72.210 of this chapter................
14. Byproduct, source, or special nuclear material
licenses and other approvals authorizing
decommissioning, decontamination, reclamation, or site
restoration activities under parts 30, 40, 70, 72, and
76 of this chapter:
Licensing and inspection........................... Full Cost
15. Import and Export licenses:
Licenses issued under 10 CFR part 110 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
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
------------------------------------------------------------------------

[[Page 16997]]

Schedule of Materials Fees--Continued
[See footnotes at end of table]
------------------------------------------------------------------------
Category of materials licenses and type of fees 1 Fee 2, 3
------------------------------------------------------------------------
D. Application for export or import of other
materials, including radioactive waste, not
requiring Commissioner review, Executive Branch
review, or foreign government assurances under the
Atomic Energy Act. This category includes
application for export or import of radioactive
waste where the NRC has previously authorized the
export or import of the same form of waste to or
from the same or similar parties, requiring only
confirmation from the receiving facility and
licensing authorities that the shipments may
proceed according to previously agreed
understandings and procedures.
Application--new license....................... 1,200
Amendment...................................... 1,200
E. Minor amendment of any export or import license
to extend the expiration date, change domestic
information, or make other revisions which do not
require in-depth analysis, review, or
consultations with other agencies or foreign
governments.
Amendment...................................... 220
16. Reciprocity:
Agreement State licensees who conduct activities
under the reciprocity provisions of 10 CFR 150.20.
Application.................................... 1,400
------------------------------------------------------------------------
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), 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 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 16998]]

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 Section 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 $2,809,000.
(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 $275,000.
(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 conducted 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 16999]]

the Commission with the proper certification along with its annual fee
payment, the licensee may pay reduced annual fees as shown in the
following table. 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 Endangered 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. For licensees who cannot access the NRC's
external web site, NRC Form 526 may be obtained 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. The Form can also be obtained 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 the following table. 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
[See footnotes at end of table]
------------------------------------------------------------------------
Annual fees 1,
Category of materials licenses 2, 3
------------------------------------------------------------------------
1. Special nuclear material:
A. (1) Licenses for possession and use of U-235 or
plutonium for fuel fabrication activities.
(a) Strategic Special Nuclear Material:
Babcock & Wilcox: SNM-42................... $3,551,000
Nuclear Fuel Services: SNM-124............. 3,551,000
(b) Low Enriched Uranium in Dispersible Form
Used for Fabrication of Power Reactor Fuel:
Combustion Engineering (Hematite) SNM-33... 1,191,000
General Electric Company: SNM-1097......... 1,191,000
Siemens Nuclear Power: SNM-1227............ 1,191,000
Westinghouse Electric Company: SNM-1107.... 1,191,000
(2) All other special nuclear materials licenses
not included in Category 1.A.(1) which are
licensed for fuel cycle activities.
(a) Facilities with limited operations:
Framatome Cogema SNM-1168.................. 468,000
(b) All Others:
General Electric SNM-960................... 340,000
B. Licenses for receipt and storage of spent fuel 11N/A
at 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 1.A.(2)..................................
E. Licenses or certificates for the operation of a 2,211,000
uranium enrichment facility.......................
2. Source material:
A. (1) Licenses for possession and use of source 510,000
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.

[[Page 17000]]

Class I facilities 4........................... 94,300
Class II facilities 4.......................... 79,000
Other facilities 4............................. 29,900
(3) Licenses that authorize the receipt of 58,200
byproduct material, as defined in section 11e.(2)
of the Atomic Energy Act, from other persons for
possession and disposal, except those licenses
subject to the fees in Category 2A(2) or Category
2A(4).............................................
(4) Licenses that authorize the receipt of 9,200
byproduct material, as defined in Section 11e.(2)
of the Atomic Energy Act, from other persons for
possession and disposal incidental to the disposal
of the uranium waste tailings generated by the
licensee's milling operations, except those
licenses subject to the fees in Category 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 20,500
of 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/ 12,300
or 32.74 of this chapter authorizing the
processing or manufacturing and distribution or
redistribution of radiopharmaceuticals,
generators, reagent kits and/or sources and
devices containing byproduct material. This
category also includes the possession and use of
source material for shielding authorized 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. 3,900
32.72, 32.73, and/or 32.74 of this chapter
authorizing distribution or redistribution of
radiopharmaceuticals, generators, reagent kits and/
or sources or devices not involving processing of
byproduct material. This category includes
licenses issued 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 10,000
of 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
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 4,800
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 13 N/A
pursuant to 10 CFR part 31........................

[[Page 17001]]

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.............
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 collection and laundry 16,900
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 13,900
of this chapter for human use of byproduct
material, source material, or special nuclear
material in sealed sources contained in
teletherapy devices. This category also includes
the possession and use of source material for
shielding when authorized on the same license.....
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 license9....
C. Other licenses issued under parts 30, 35, 40, 4,600
and 70 of this chapter for human use of byproduct
material, source material, and/or special nuclear
material except licenses for byproduct material,
source material, or special nuclear material in
sealed sources contained in teletherapy devices.
This category also includes the possession and use
of source material for shielding when authorized
on the same license9..............................
8. Civil defense:
A. Licenses for possession and use of byproduct 1,100
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 5,800
of 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 5,800
of devices or products containing byproduct
material, source material, or special nuclear
material manufactured in accordance with the
unique specifications of, and for use by, a single
applicant, except reactor fuel devices............
C. Registrations issued for the safety evaluation 1,700
of sealed sources containing byproduct material,
source material, or special nuclear material,
except reactor fuel, for commercial distribution..
D. Registrations issued for the safety evaluation 590
of sealed sources containing byproduct material,
source material, or special nuclear material,
manufactured in accordance with the unique
specifications of, and for use by, a single
applicant, except reactor fuel....................
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 6N/A
packages......................................
Other Casks.................................... 6N/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 6 N/A
Compliance............................................
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

[[Page 17002]]

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 licenses and holders of certificates,
registrations, and approvals who either filed for termination of their
licenses or approvals or filed for possession only/storage licenses
prior to October 1, 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.
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; 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 19th day of March, 2001.
Jesse L. Funches,
Chief Financial Officer.

Note: This appendix will not appear in the Code of Federal
Regulations.

Appendix A to This Proposed Rule-- Draft 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

[[Page 17003]]

maximum small entity fee. The small entity fee categories in
Sec. 171.16(c) of this proposed 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. Rebaselining fees
would result in reduced annual fees for a majority of the categories
of 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 final 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. A 1993 NRC survey of its
materials licensees indicated that about 25 percent of these
licensees could qualify as small entities under the NRC's size
standards.
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.
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,
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, in developing
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

[[Page 17004]]

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, the maximum small
entity annual fee 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-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.
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. 40 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.--U.S. 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 comply 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. 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. For licensees who cannot
access the NRC's external web site, NRC Form 526 may be obtained
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;

[[Page 17005]]

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 organizations--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 institutional 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 and educational program
for which it awards academic degrees, and whose educational programs
are available 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
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.
The NRC is proposing to eliminate mailing NRC Form 526 with the
annual fee invoice. 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 Part 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. For licensees who cannot access the NRC's
external web site, NRC Form 526 may be obtained 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

[[Page 17006]]

licensee qualifies, resulting in a fee of either $1,150 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. 01-7356 Filed 3-27-01; 8:45 am]
BILLING CODE 7590-01-P

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