Revision of Fee Schedules; Fee Recovery for FY 2002

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

[Federal Register: March 27, 2002 (Volume 67, Number 59)]
[Proposed Rules]
[Page 14817-14841]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27mr02-23]

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NUCLEAR REGULATORY COMMISSION
10 CFR Parts 170 and 171
RIN 3150-AG95

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 96 percent of its budget
authority in fiscal year (FY) 2002, less the amounts appropriated from
the Nuclear Waste Fund (NWF) and the General Fund. The amount to be
recovered for FY 2002 is approximately $479.5 million.

DATES: The comment period expires April 26, 2002. 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 the NRC collect
the FY 2002 fees by September 30, 2002, 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 a.m. and 4:15 p.m. Federal
workdays. (Telephone 301-415-1678). Comments may be faxed to (301)
415-1101.
Comments may also be submitted via the NRC's interactive rulemaking
Web site (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.
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/reading-rm/adams.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 e-mail 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; Telephone 301-415-6057
or Robert Carlson; Telephone 301-415-8165, Office of the Chief
Financial Officer, U.S. Nuclear Regulatory Commission, Washington, DC
20555-0001.

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 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 by 2 percent per year
beginning in FY 2001, until the fee recovery amount is 90 percent in FY
2005. As a result, the NRC is required to recover approximately 96
percent of its FY 2002 budget authority, less the amounts appropriated
from the NWF, through fees and other offsetting receipts. In addition,
$36.0 million has been appropriated from the General Fund for
activities related to homeland security. The FY 2002 Defense
Appropriations Act states that this $36.0 million shall be excluded
from license fee revenues. The total amount to be recovered in fees and
other offsetting receipts for FY 2002 is approximately $479.5 million.
The NRC assesses two types of fees to meet the requirements of
OBRA-90, as amended. First, license and inspection fees, established in
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, and
for certain types of existing licenses, the review of renewal
applications, the review of amendment requests, and inspections.
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 96 percent of its FY 2002 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 2002 is
$559.1 million, of which approximately $23.7 million has been
appropriated from the NWF. In addition, $36.0 million has been
appropriated from the General Fund for activities related to homeland
security. Based on the 96 percent fee recovery requirement, the NRC
must collect approximately $479.5 million in FY 2002 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 2002 is $26.2 million more than the
amount estimated for recovery in FY 2001.
The FY 2002 fee recovery amount is reduced by a $1.7 million
carryover from additional collections in FY 2001 that were
unanticipated at the time the final FY 2001 fee rule was published.
This leaves approximately $477.8 million to be recovered in FY 2002
through part 170 licensing and inspection fees, part 171 annual fees,
and other offsetting receipts.
The NRC estimates that approximately $120.7 million will be
recovered in FY 2002 from part 170 fees and other offsetting receipts.
For FY 2002, the NRC also estimates a net adjustment of approximately
$8.2 million for FY 2002 invoices that the NRC estimates will not be
paid during the fiscal year, and for payments received in FY 2002 for
FY 2001 invoices. The remaining $348.9 million

[[Page 14819]]

would be recovered through the part 171 annual fees, compared to $331.6
million for FY 2001.
Table I summarizes the budget and fee recovery amounts for FY 2002.
Due to rounding, adding the individual numbers in the table may result
in a total that is slightly different than the one shown.

Table I.--Budget and Fee Recovery Amounts for FY 2002
[Dollars in millions]
------------------------------------------------------------------------

------------------------------------------------------------------------
Total Budget Authority.................................... $559.1
Less NWF.............................................. -23.7
Less General Fund..................................... -36.0
-------------
Balance........................................... $499.5
Fee Recovery Rate for FY 2002......................... x 96.0%
-------------
Total Amount to be Recovered For FY 2002.................. $479.5
Less Carryover from FY 2001........................... -1.7
-------------
Amount to be Recovered Through Fees and Other Receipts.... $477.8
Less Estimated Part 170 Fees and Other Receipts....... -120.7
=============
Part 171 Fee Collections Required......................... $357.1
Part 171 Billing Adjustments:
Unpaid FY 2002 Invoices (estimated)................... 2.9
Less Payments Received in FY 2002 for Prior Year -11.1
Invoices (estimated).................................
-------------
Subtotal.......................................... -8.2
=============
Adjusted Part 171 Collections Required.................... $348.9
------------------------------------------------------------------------

The FY 2002 final 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 2002 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 2002 final
rule. For these licensees, payment would be due on the effective date
of the FY 2002 rule. Those materials licensees whose license
anniversary date during FY 2002 falls before the effective date of the
final FY 2002 rule would be billed for the annual fee during the
anniversary month of the license at the FY 2001 annual fee rate. Those
materials licensees whose license anniversary date falls on or after
the effective date of the final FY 2002 rule would be billed for the
annual fee at the FY 2002 annual fee rate during the anniversary month
of the license, and payment would be due on the date of the invoice.
The NRC, in proposing FY 2002 fees for uranium recovery licensees,
is cognizant that the National Mining Association (NMA) has filed a
petition requesting the commencement of a rulemaking proceeding which
would result in a modification of the fee schedules to waive all fees
for uranium recovery licensees. Alternatively, the NMA requested the
waiver of fees associated with a contemplated rulemaking that would
establish requirements for licensing uranium and thorium recovery
facilities. The NRC not only published the petition in the Federal
Register for comment (66 FR 55604; November 2, 2001), but also mailed
the Federal Register document noticing the petition and inviting public
comment to each of the NRC's more than 5,000 licensees. The comment
period expired on January 16, 2002. The NRC is now evaluating the
comments it has received in response to this action.
The Commission anticipates issuing its decision on the rulemaking
petition before the projected promulgation of the final FY 2002 fee
rule in June. Should the Commission decide to grant the rulemaking
petition and provide immediate fee relief to the uranium recovery
industry, this could result in higher fees for other NRC licensees. The
additional fees to be distributed among other licensees could be
between $3.0 and $4.0 million in FY 2002. In such a case, more than 85
percent of this sum would be allocated to power reactors based on the
NRC's established method for allocating costs not attributable to those
licensees paying annual fees. Thus, the NRC is inviting those who have
arguments to place before the Commission that were not submitted in
response to the November 2, 2001, Federal Register document requesting
public comment on the petition to do so now.
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 2002 final rule or future final fee
rules to licensees. However, the NRC will send the final rule to any
licensee or other person upon specific 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 June 2002. In addition to publication in the Federal
Register, the final rule will be available on the Internet at http://
ruleforum.llnl.gov for at least 90 days after the effective date of the
final rule.
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 part 170 fees based on the revised hourly rates.
Additionally, the NRC is proposing to revise part 170 to clarify that
full cost fees will be assessed for amendments and inspections related
to the storage of reactor-related Greater than Class C (GTCC) waste
under part 72, and to clarify the fee waiver provisions for special
projects, including topical reports.
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 2002 direct program full time
equivalents (FTEs) and the FY 2002 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 $156 per hour ($276,345 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 materials program (nuclear materials and
nuclear waste programs) is $152 per hour ($269,451 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 2001 final
fee rule, the reactor and materials program rates were $150 and $144,
respectively. The proposed increases are primarily due to the
Government-wide pay increase in FY 2002.
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 materials program (nuclear materials and nuclear waste
programs).

[[Page 14820]]

b. Direct contract support, which is the use of contract or other
services in support of the line organization's direct program, is
excluded from the calculation of the hourly rates because the costs for
direct contract support are charged directly through the various
categories of fees.
c. All other program costs (i.e., Salaries and Benefits, Travel)
represent ``in-house'' costs and are to be collected by dividing them
uniformly by the total number of direct FTEs for the program. In
addition, salaries and benefits plus contracts for non-program direct
management and support, and for the Office of the Inspector General,
are allocated to each program based on that program's direct costs.
This method results in the following costs which are included in the
hourly rates. Due to rounding, adding the individual numbers in the
table may result in a total that is slightly different than the one
shown.

Table II.--FY 2002 Budget Authority To Be Included in Hourly Rates
[Dollars in millions]
------------------------------------------------------------------------
Reactor Materials
programs program
------------------------------------------------------------------------
Direct Program Salaries & Benefits.... 117.0 32.2
Overhead Salaries & Benefits, Program 59.2 15.6
Travel and Other Support.............
Allocated Agency Management and 106.9 29.0
Support..............................
---------------------------------
Subtotal.......................... 283.1 76.8
Less offsetting receipts.............. -0 .1 -0.0
---------------------------------
Total Budget Included in Hourly 283.0 76.8
Rate.............................
=================================
Program Direct FTEs................... 1024.0 285.1
Rate per Direct FTE................... 276,345 269,451
Professional Hourly Rate (Rate per 156 152
direct FTE divided by 1,776 hours)...
------------------------------------------------------------------------

As shown in Table II, dividing the $283.0 million budgeted amount
(rounded) included in the hourly rate for the reactor program by the
reactor program direct FTEs (1024.0) results in a rate for the reactor
program of $276,345 per FTE for FY 2002. The Direct FTE Hourly Rate for
the reactor program would be $156 per hour (rounded to the nearest
whole dollar). This rate is calculated by dividing the cost per direct
FTE ($276,345) 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 $76.8 million budgeted
amount (rounded) included in the hourly rate for the materials program
by the program direct FTEs (285.1) results in a rate of $269,451 per
FTE for FY 2002. The Direct FTE Hourly Rate for the materials program
would be $152 per hour (rounded to the nearest whole dollar). This rate
is calculated by dividing the cost per direct FTE ($269,451) by the
number of productive hours in one year (1,776 hours).
2. Fees for Storage of Greater Than Class C Waste Under Part 72
On October 11, 2001 (66 FR 51823), the NRC published a final rule
revising part 72 to allow licensing for the interim storage of reactor-
related Greater than Class C (GTCC) waste in a manner that is
consistent with current licensing for the interim storage of spent
fuel. As provided in Sec. 72.6, reactor-related GTCC waste can only be
stored under the provisions of a specific license. The NRC stated in
the statement of considerations for the final rule that subsequent to
issuing the final revision of part 72, part 170 would be amended to
clarify that full cost fees will be assessed for amendments and
inspections related to the storage of reactor-related GTCC waste under
part 72. Therefore, the NRC is revising Category 1.B. of Sec. 170.31 to
specifically include storage of reactor-related GTCC waste licensed
under part 72. Category 1.B. of Sec. 170.31 currently refers only to
specific licenses for receipt and storage of spent fuel at an
independent storage installation.
3. Fee Adjustments
The NRC is proposing to adjust the current part 170 fees in
Secs. 170.21 and 170.31 to reflect the changes in the revised hourly
rates. The full cost fees assessed under Secs. 170.21 and 170.31 would
be based on the proposed professional hourly rates and any direct
program support (contractual services) costs expended by the NRC. Any
professional hours expended on or after the effective date of the final
rule would be assessed at the FY 2002 hourly rates.
The fees in Secs. 170.21 and 170.31 that are based on the average
time to review an application (``flat'' fees) would be adjusted to
reflect the increase in the professional hourly rates from FY 2001. The
amounts of the materials licensing ``flat'' fees were rounded so that
the amounts would be de minimis and the resulting flat fee would be
convenient to the user. Fees under $1,000 are rounded to the nearest
$10. Fees that are greater than $1,000 but less than $100,000 are
rounded to the nearest $100. Fees that are greater than $100,000 are
rounded to the nearest $1,000.
The proposed licensing ``flat'' fees are applicable to fee
categories 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. Applications filed on or after the effective date of the
final rule would be subject to the revised fees in this proposed rule.
4. Fee Waivers
In the FY 2001 final fee rule (66 FR 32452; June 14, 2001), the NRC
revised criterion (c) of Footnote 4 to Sec. 170.21 and criterion (c) of
Footnote 5 to Sec. 170.31 to clarify that fees will not be assessed for
requests or reports submitted to the NRC 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.
However, the NRC has continued to receive requests for fee exemptions
that do not meet the intent of the waiver provisions. In addition,
Footnote 4 to Sec. 170.21, Footnote 5 to Sec. 170.31, and material in
the definition of Special Projects in Sec. 170.3 concerning these types
of requests and reports provide information that is more suitable for
inclusion in Sec. 170.11, Exemptions.

[[Page 14821]]

Therefore, the NRC is proposing to delete Footnote 4 to Sec. 170.21
and Footnote 5 to Sec. 170.31, to modify the language that is currently
in those footnotes and add the revised fee waiver provisions to the
Exemption section as Sec. 170.11(a)(1). The NRC also proposes to remove
the language relating to certain reports and requests submitted to the
NRC for review from the definition of Special Projects in Sec. 170.3.
The fee waiver provisions will be revised to specifically state that
the fee waiver criteria apply only when it has been demonstrated that
the report or request has been submitted to the NRC for the specific
purpose of supporting the generic regulatory improvements or efforts of
the NRC, rather than the industry, and that the NRC, at the time of the
submission, plans to use the submission for that purpose. The proposed
modification would also clarify that the waiver provisions do not apply
to reports or documents submitted for the NRC's review that the NRC, at
the time of the submission, does not plan to use to improve its
regulatory program, and that therefore will primarily provide only a
special benefit to identifiable recipients, such as the industry,
vendors, or specific licensees. These criteria will allow the NRC to
make waiver determinations soon after the documents are submitted. As
provided in Sec. 170.5, fee exemption requests should be made to the
NRC's Chief Financial Officer. To further assist applicants in
determining in advance whether their submittals meet the fee waiver
criteria, specific examples of the types of submissions that meet the
fee waiver criteria and those that do not would be provided in
Sec. 170.11(a)(1).
In summary, the NRC is proposing to amend 10 CFR part 170 to--
1. Revise the materials and reactor program FTE hourly rates;
2. Revise the licensing fees to be assessed to reflect the revised
hourly rates;
3. Revise fee category 1.B. of Sec. 170.31 to clarify that full
cost fees would be assessed for amendments and inspections related to
the storage of GTCC Waste under part 72; and
4. Add to Sec. 170.11, Exemptions, the fee waiver provisions that
are currently in Footnote 4 to Sec. 170.21 and Footnote 5 to
Sec. 170.31, and clarify the fee waiver provisions currently in
criterion (c) of these Footnotes. These footnotes, as well as material
in the definition of Special Projects in Sec. 170.3 related to certain
special requests and reports submitted to NRC for review, would be
deleted.

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 2002, to amend
part 171 to specifically cover combined licenses issued under part 52,
to clarify the annual fee exemption provision for reactors, and to
modify the methodology for allocating the uranium recovery annual fee
amount among the types of uranium recovery licenses. The proposed
amendments are as follows.
1. Annual Fees
The NRC is proposing to establish rebaselined annual fees for FY
2002. 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 licenses. The fees were last
rebaselined in FY 2001. Based on the change in the magnitude of the
budget to be recovered through fees, the Commission has determined that
it is appropriate to rebaseline the annual fees again this year.
Rebaselining fees would result in increased annual fees for all classes
of licenses, except for the non-power reactor and spent fuel storage/
reactor decommissioning classes, which would have annual fee decreases.
The annual fees in Secs. 171.15 and 171.16 would be revised for FY
2002 to recover approximately 96 percent of the NRC's FY 2002 budget
authority, less the estimated amount to be recovered through part 170
fees and the amounts appropriated from the NWF and the General Fund.
The total amount to be recovered through annual fees for FY 2002 is
$348.9 million, compared to $331.6 million for FY 2001.
The proposed FY 2002 annual fees would increase for most categories
of licenses and decrease for others from the previous year. The
increases in annual fees range from approximately 5.1 percent for
materials licenses authorizing the receipt of waste byproduct materials
and packaging/repackaging of the material (Waste Receipt/Packaging), to
approximately 129 percent for rare earth facilities. The decreases in
annual fees range from approximately 3.6 percent for non-power
reactors, to approximately 18 percent for the Title II uranium recovery
specific licenses.
Factors affecting the changes to the annual fee amounts include
changes in budgeted costs for the different classes of licenses, the
reduction in the fee recovery rate from 98 percent for FY 2001 to 96
percent for FY 2002, the estimated part 170 collections for the various
classes of licenses, a $1.7 million carryover from additional
collections in FY 2001 that were unanticipated at the time the final FY
2001 fee rule was published (compared to a $3.1 million carryover from
FY 2000 which reduced FY 2001 annual fees), the increased hourly rates,
and decreases in the numbers of licensees for certain categories of
licenses. In addition, the proposed decreases for the Title II uranium
recovery specific licenses are based on a proposed change to the
methodology for allocating the annual fee amount for the uranium
recovery class among Title I and Title II licenses. This proposed
change is described in detail in B. below.
In addition, for some classes of materials licenses, a change in
policy for assigning Project Managers (PMs) has contributed to the
annual fee increases. In the last few years, part 170 fees have
increased for certain classes of licenses due to initiatives to recover
costs for additional activities through fees for services rather than
annual fees. One such initiative was the policy for full cost recovery
under part 170 for PMs, which became effective with the FY 1999 final
fee rule (64 FR 31448; June 10, 1999). However, in response to concerns
expressed by materials licensees, the Office of Nuclear Material Safety
and Safeguards (NMSS) in July 2001 changed its policy for assigning
PMs. The revised NMSS policy has resulted in classifying approximately
four staff members as PMs at this time, compared to approximately 97 in
FY 2000. Under NMSS's revised policy, if project management duties to
support a licensee/facility do not exceed 75 percent of the assigned
person's time for any given two week period, then the staff member will
be considered a ``Point of Contact.'' As a result, that person's time
which is not specifically associated with a licensing action or
inspection is now recovered under part 171.
Although the change in policy for assigning PMs causes a decrease
in estimated part 170 collections for some classes, it also results in
more of the budgeted costs for that class being

[[Page 14822]]

recovered through annual fees. However, the change does not result in
an increase in total fees paid by these classes. Licensees in the rare
earth facility class, for example, would have an annual fee increase of
approximately 129 percent, although the total budgeted costs for the
class actually decreased from FY 2001. The increase in annual fees is
primarily the result of the change in PM policy which caused a shift in
cost recovery from part 170 to part 171. The effect of this change on
the part 170 fees, part 171 fees, and the total fees for the class
compared to FY 2001 is illustrated in Table III below.

Table III.--Fees for the Rare Earth Class for FY 2001 and FY 2002
[Dollars in millions]
----------------------------------------------------------------------------------------------------------------
FY 2001 FY 2002 Difference
----------------------------------------------------------------------------------------------------------------
Estimated part 170 fees......................................... $.81 $.50 -$.31
Total annual fee amount......................................... .09 .21 .12
-----------------------------------------------
Total....................................................... .90 .71 -.19
----------------------------------------------------------------------------------------------------------------

Table IV below shows the proposed rebaselined annual fees for FY
2002 for representative categories of licenses.

Table IV.--Rebaselined Annual Fees for FY 2002
------------------------------------------------------------------------
Proposed FY
Class/category of licenses 2002 annual
fee
------------------------------------------------------------------------
Operating Power Reactors (including Spent Fuel Storage/ $2,869,000
Reactor Decommissioning annual fee)....................
Spent Fuel Storage/Reactor Decommissioning.............. 239,000
Nonpower Reactors....................................... 71,300
High Enriched Uranium Fuel Facility..................... 4,073,000
Low Enriched Uranium Fuel Facility...................... 1,366,000
UF₆ Conversion Facility................................. 585,000
Uranium Mills........................................... 7,700
Transportation:
Users/Fabricators................................... 72,800
Users Only.......................................... 7,300
Typical Materials Users:
Radiographers....................................... 13,700
Well Loggers........................................ 10,000
Gauge Users......................................... 2,700
Broad Scope Medical................................. 26,200
------------------------------------------------------------------------

The annual fees assessed to each class of licenses include a
surcharge to recover those NRC budgeted costs that are not directly or
solely attributable to the classes of licenses, but must be recovered
from licensees to comply with the requirements of OBRA-90, as amended.
Based on the FY 2001 Energy and Water Appropriations Act which amended
OBRA-90 to decrease the NRC's fee recovery amount by 2 percent per year
beginning in FY 2001, until the fee recovery amount is 90 percent in FY
2005, the total surcharge costs for FY 2002 will be reduced by about
$20.0 million. The total FY 2002 budgeted costs for these activities
and the reduction to these amounts for fee recovery purposes are shown
in Table V. Due to rounding, adding the individual numbers in the table
may result in a total that is slightly different than the one shown.

Table V.--Surcharge Costs
[Dollars in millions]
------------------------------------------------------------------------
FY 2002
Category of costs budgeted costs
------------------------------------------------------------------------
1. Activities not attributable to an existing NRC
licensee or class of licensee:
a. International activities......................... $8.4
b. Agreement State oversight........................ 8.7
c. Low-level waste disposal generic activities...... 1.5
d. Site decommissioning management plan activities 8.3
not recovered under part 170.......................
2. Activities not assessed part 170 licensing and
inspection fees or part 171 annual fees based on
existing law or Commission policy:
a. Fee exemption for nonprofit educational 7.9
institutions.......................................
b. Licensing and inspection activities associated 3.7
with other Federal agencies........................
c. Costs not recovered from small entities under 10 4.5
CFR 171.16(c)......................................
3. Activities supporting NRC operating licensees and
others:
a. Regulatory support to Agreement States........... 13.0
b. Generic decommissioning/reclamation (except those 8.3
related to power reactors).........................
---------------
Total surcharge costs........................... 64.4

[[Page 14823]]

Less 4 percent of NRC's FY 2002 total budget (NWF and -20.0
General Fund amounts)..................................
===============
Total Surcharge Costs to be Recovered........... 44.4
------------------------------------------------------------------------

As shown in Table V, $44.4 million would be the total surcharge
cost allocated to the various classes of licenses for FY 2002. The NRC
would continue to allocate the surcharge costs, except Low-Level Waste
(LLW) surcharge costs, to each class of licenses based on the percent
of the 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 licenses. The proposed surcharge costs allocated to each
class would be included in the annual fee assessed to each licensee.
The FY 2002 proposed surcharge costs that would be allocated to each
class of licenses are shown in Table VI. Due to rounding, adding the
individual numbers in the table may result in a total that is slightly
different than the one shown.

Table VI.--Allocation of Surcharge
----------------------------------------------------------------------------------------------------------------
LLW surcharge Non-LLW surcharge Total
---------------------------------------------------------------- surcharge
---------------
Percent $,M Percent $,M $,M
----------------------------------------------------------------------------------------------------------------
Operating Power Reactors........ 74 1.1 79.7 34.1 35.3
Spent Fuel Storage/Reactor .............. .............. 7.7 3.3 3.3
Decomm.........................
Nonpower Reactors............... .............. .............. 0.1 0.0 0.0
Fuel Facilities................. 8 0.1 5.8 2.5 2.6
Materials Users................. 18 0.3 4.5 1.9 2.2
Transportation.................. .............. .............. 1.3 0.5 0.5
Rare Earth Facilities........... .............. .............. 0.2 0.1 0.1
Uranium Recovery................ .............. .............. 0.9 0.4 0.4
-------------------------------------------------------------------------------
Total Surcharge............. 100 1.5 100.0 42.9 44.4
----------------------------------------------------------------------------------------------------------------

The budgeted costs allocated to each class of licenses 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 budgeted resources for each class of licenses
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.nrc.gov/reading-rm/adams.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 2002 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 2002 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 2002 final rule to reactors and major fuel cycle facilities. For
these licensees, payment would be due on the effective date of the FY
2002 rule. Those materials licensees whose license anniversary date
during FY 2002 falls before the effective date of the FY 2002 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 2001 rate in FY
2002. However, those materials licensees whose license anniversary date
falls on or after the effective date of the FY 2002 final rule would be
billed for the annual fee at the FY 2002 rate during the anniversary
month of the license, and payment would be due on the date of the
invoice.

A. Fuel Facilities

The FY 2002 budgeted costs to be recovered in annual fees assessed
to the fuel facility class of licenses is approximately $18.8 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 budgeted costs included in the
annual fee would be spread among the remaining licensees/certificate
holders, and result in a higher fee for those remaining in that fee
category.
Prior to the beginning of FY 2002, one low enriched uranium fuel
facility

[[Page 14824]]

permanently ceased licensed operations and filed for an amendment to
place its license in a decommissioning status. The proposed annual fees
for the fuel facility class reflect this change in the number of
licensees subject to annual fees.
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 basis 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 numeric 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
licenses are summarized in Table VII below.

Table VII.--Effort Factors for Fuel Facilities
----------------------------------------------------------------------------------------------------------------
Effort factors
Facility type Number of -------------------------------
facilities Safety Safeguards
----------------------------------------------------------------------------------------------------------------
High Enriched Uranium Fuel......................................... 2 91 (36.0%) 76 (57.1%)
Enrichment......................................................... 2 70 (27.7%) 34 (25.6%)
Low Enriched Uranium Fuel.......................................... 3 66 (26.1%) 18 (13.5%)
UF₆ Conversion..................................................... 1 12 (4.7%) 0 (0%)
Limited Operations Facility........................................ 1 8 (3.2%) 3 (2.3%)
Others............................................................. 1 6 (2.4%) 2 (1.5%)
----------------------------------------------------------------------------------------------------------------

Applying these factors to the safety, safeguards, and surcharge
components of the $18.8 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 VIII.--Proposed Annual Fees for Fuel Facilities
------------------------------------------------------------------------
Proposed FY
Facility type 2002
annual fee
------------------------------------------------------------------------
High Enriched Uranium Fuel................................. $4,073,000
Uranium Enrichment......................................... 2,537,000
Low Enriched Uranium....................................... 1,366,000
UF₆ Conversion............................................. 585,000
Limited Operations Facility................................ 537,000
Others..................................................... 390,000
------------------------------------------------------------------------

B. Uranium Recovery Facilities

The FY 2002 budgeted costs, including surcharge costs, to be
recovered through annual fees assessed to the uranium recovery class is
approximately $1.7 million. Based on the following proposed change in
the way NRC allocates these costs, approximately $1.0 million of this
amount would be assessed to DOE. The remaining $0.7 million would be
recovered through annual fees assessed to conventional mills, in-situ
leach solution mining facilities, and 11e.(2) mill tailings disposal
facilities.
The NRC is proposing to revise its methodology for allocating
uranium recovery budgeted costs to be recovered through annual fees
among the two major types of programs in the uranium recovery class.
The first type is the NRC's Title I program for DOE sites under the
Uranium Mill Tailings Radiation Control Act (UMTRCA) of 1978. The
second type is the NRC's UMTRCA Title II program; specifically,
commercial solution mining facilities, conventional mills, and 11e.(2)
mill tailings disposal facilities. Although the Title I program is part
of the uranium recovery class, DOE is not currently assessed a portion
of the NRC budgeted costs attributed to generic/other activities for
the uranium recovery program. As a consequence, licensees under the
NRC's specific licensing program (UMTRCA Title II) bear the entire cost
of these activities.
In recognizing that the uranium recovery class is comprised of two
types of licensees falling under either the NRC's Title I or Title II
program, the Commission determined that it was appropriate to divide
the generic and other costs included in the uranium recovery annual fee
evenly among the two programs. Furthermore, DOE stands to gain from
NRC's generic regulatory efforts because DOE eventually will also
accept the Title II specifically licensed sites under a general license
from the NRC for long term surveillance and care.
Therefore, the proposed methodology would allocate the total annual
fee amount, less the amounts specifically budgeted for Title I
activities, equally between Title I and Title II licensees. This would
result in an annual fee being assessed to DOE to recover the costs
specifically budgeted for NRC's Title I activities plus 50 percent of
the remaining annual fee amount, including the surcharge, for the
uranium recovery class. The remaining surcharge, generic, and other
costs would be assessed to the NRC Title II program licensees that are
subject to annual fees. Thus, the costs to be recovered through annual
fees assessed to the uranium recovery class are shown below. Due to
rounding, adding the individual numbers in the table may result in a
total that is slightly different than the one shown.

[[Page 14825]]

DOE Annual Fee Amount (UMTRCA Title I and Title II
general licenses):
UMTRCA Title I budgeted costs....................... $377,232
50% of generic/other uranium recovery budgeted costs 489,259
50% of uranium recovery surcharge................... 189,509
---------------
Total Annual Fee Amount for DOE................. 1,056,000
Annual Fee Amount for UMTRCA Title II Specific Licenses:
50% of generic/other uranium recovery budgeted costs 489,259
50% of uranium recovery surcharge................... 189,509
---------------
Total Annual Fee Amount for Title II Specific 678,768
Licenses.......................................

The costs allocated to the various categories of Title II specific
licensees are based on the uranium recovery matrix established in the
FY 1999 final fee rule (64 FR 31448; June 10, 1999). The methodology
for establishing part 171 annual fees for Title II uranium recovery
licensees has not changed and is as follows:
(1) The methodology identifies three categories of licenses:
conventional uranium mills (Class I facilities), uranium solution
mining facilities (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);
(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 specifically licensed Title II uranium recovery licensees
are as follows:

Table IX.--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 2,310 34
Class II (solution mining)......................... 6 645 3,870 58
11e.(2) disposal................................... 1 475 475 7
11e.(2) disposal incident to existing tailings 1 75 75 1
sites.............................................
----------------------------------------------------------------------------------------------------------------

Applying these factors to the $0.7 million in budgeted costs to be
recovered from Title II specific licensees results in the following
proposed annual fees:

Table X.--Annual Fees for Title II Specific Licenses
------------------------------------------------------------------------
Proposed FY
Facility type 2002 annual
fee
------------------------------------------------------------------------
Class I (conventional mills)............................ $77,700
Class II (solution mining).............................. 65,100
11e.(2) disposal........................................ 47,900
11e.(2) disposal incidental to existing tailings sites.. 7,600
------------------------------------------------------------------------

In the FY 2001 final rule (66 FR 32478), the NRC revised
Sec. 171.19 to establish a quarterly billing schedule for the Class I
and Class II licensees, regardless of the annual fee amount. Therefore,
as provided in Sec. 171.19(b), if the amounts collected in the first
three quarters of FY 2002 exceed the amount of the revised annual fee,
the overpayment will be refunded. The remaining categories of Title II
facilities are subject to billing based on the anniversary date of the
license as provided in Sec. 171.19(c).

C. Power Reactors

The approximately $273.6 million in budgeted costs to be recovered
through FY 2002 annual fees assessed to the power reactor class would
be divided equally among the 104 power reactors licensed to operate.
This results in a proposed FY 2002 annual fee of $2,630,000 per
reactor. Additionally, each power reactor licensed to operate would be
assessed the proposed FY 2002 spent fuel storage/reactor
decommissioning annual fee of $239,000. This would result in a total FY
2002 annual fee of $2,869,000 for each power reactor licensed to
operate.

[[Page 14826]]

D. Spent Fuel Storage/Reactor Decommissioning

For FY 2002, budgeted costs of approximately $28.9 million for
spent fuel storage/reactor decommissioning are to be recovered through
annual fees assessed to part 50 power reactors, and to part 72
licensees who do not hold a part 50 license. Those reactor licensees
that have ceased operations and have no fuel onsite are not subject to
these annual fees. The costs would be divided equally among the 121
licensees, resulting in a proposed FY 2002 annual fee of $239,000 per
licensee.

E. Non-Power Reactors

Approximately $285,200 in budgeted costs is to be recovered through
annual fees assessed to the non-power reactor class of licenses for FY
2002. This amount would be divided equally among the four non-power
reactors subject to annual fees. This results in a proposed FY 2002
annual fee of $71,300 for each licensee.

F. Rare Earth Facilities

The FY 2002 budgeted costs of approximately $205,300 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 2002 annual
fee of $68,400 for each rare earth facility.
As explained previously, the increase in annual fees for the rare
earth class is not the result of increased budgeted costs for the
class, but rather the result of the change in NMSS's revised PM policy,
which resulted in a shift of cost recovery for certain activities from
part 170 to part 171.

G. Materials Users

To equitably and fairly allocate the $25.1 million in FY 2002
budgeted costs to be recovered in annual fees assessed to the
approximately 5,000 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 licenses 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
licenses. The annual fee for these categories of licenses 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
$17.5 million in general costs and is 1.07 for FY 2002. The inspection
multiplier is the multiple necessary to recover approximately $5.3
million in inspection costs for FY 2002, and is 1.1 for FY 2002. The
unique category costs are any special costs that the NRC has budgeted
for a specific category of licenses. For FY 2002, of the unique costs
attributable to medical licensees for the medical development program,
approximately $126,900 would be allocated to NRC medical licensees.
The annual fee assessed to each licensee also includes a share of
the $1.9 million in surcharge costs allocated to the materials user
class of licenses 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 $4.8 million in FY 2002 budgeted costs to be
recovered through annual fees assessed to the transportation class of
licenses, approximately $1.4 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 $3.4 million, approximately
25 percent would be allocated to the 77 quality assurance plans
authorizing use only and the 39 quality assurance plans authorizing use
and design/fabrication. The remaining 75 percent would be allocated
only to the 39 quality assurance plans authorizing use and design/
fabrication. This results in a proposed annual fee of $7,300 for each
of the holders of quality assurance plans that authorize use only, and
a proposed annual fee of $72,800 for each of the holders of quality
assurance plans that authorize use and design/fabrication.
2. Part 52 Combined Licenses
The NRC proposes revising part 171 to: authorize assessment of
annual fees for holders of combined licenses issued under part 52;
clarify that the annual fees would be assessed for each license, and
not for each unit; and establish when assessment of annual fees would
begin.
Part 171 currently covers annual fees for part 50 licenses, but
does not specifically cover annual fees for combined licenses issued
under part 52. Additionally, neither part 52 nor part 171 addresses
when NRC would begin to assess an annual fee to a part 52 license
holder. The NRC proposes to revise Sec. 171.3 ``Scope'' to specify that
the annual fee regulations also apply to any person holding a combined
license issued under part 52.
The annual fees for a part 52 combined license would be assessed
only after construction has been completed, all regulatory requirements
have been met, and the Commission has authorized operation of the
reactor(s). This approach is consistent with the Commission's policy of
not imposing annual fees on those entities only holding a power reactor
construction permit.
Currently, Sec. 171.15(a) provides that reactor licensees shall pay
an annual fee ``* * * for each unit for each license held * * *''. It
is the agency's present practice to charge annual fees per license, and
the NRC is proposing to revise Sec. 171.15(a) to clarify that the
annual fees are assessed for each license, and not for each unit.
At this time, the NRC is not proposing a specific annual fee
category or amount for part 52 combined licenses because there are no
existing combined licenses issued under part 52. However, the NRC is
proposing these changes so potential applicants for a part 52 combined
license are aware that such a license will be subject to annual fees in
the future.
3. Fee Exemption for Reactors in 10 CFR 171.11
The NRC is modifying Sec. 171.11(c) to clarify that the annual fee
exemption provision applies only to ``operating'' reactors. This change
is consistent with the statement of considerations in the 1986 final
fee rule (51 FR 33224; September 18, 1986), which added this specific
fee exemption to the regulation. Therein the Commission stated it had
considered calculating the annual fee for power reactors with
``operating'' licenses based on the thermal megawatt ratings of those
reactors. However, the Commission decided against determining its fees
based on the size of the reactor because the NRC found no necessary
relationship between the thermal megawatt rating of a reactor and the
agency's regulatory costs. Nevertheless, the NRC stated because it was
not the Commission's intent to promulgate a fee schedule that would

[[Page 14827]]

have the effect of forcing smaller, older reactors to shut down, it was
adding an annual fee exemption provision in Sec. 171.11 which takes
reactor size, age, and other relevant factors into consideration. In
the section-by-section analysis for Sec. 171.11, the NRC stated that
the added exemption section ``* * * provides that the holder of a
license to `operate' a power reactor * * * may apply to the Commission
for partial relief from annual fee[s].''
In the FY 1999 final fee rule (64 FR 31448; June 10, 1999), the NRC
established the Spent Fuel Storage/Reactor Decommissioning (SFSRD)
class with an annual fee to be assessed to all reactor licensees having
fuel onsite, regardless of their operating status. In the statement of
considerations for the FY 1999 fee rule, the NRC stated that the
Commission determined all reactors, including those which are shut
down, should pay the SFSRD annual fee to recover the NRC's costs
related to generic reactor decommissioning and spent fuel storage
activities. It is clear from the statement of considerations that the
Commission did not intend to relieve reactors that are not operating
from the annual fee requirements unless they had permanently ceased
operations and had no fuel onsite.
The Commission reemphasizes that all communications concerning
annual fees, including exemption requests, should be addressed to the
Chief Financial Officer, U.S. NRC, Washington DC 20555-0001 in
accordance with Sec. 171.9.
4. Administrative Amendment
The NRC is proposing to modify Category 1.B. of Sec. 171.16(d) to
specifically include licenses issued under part 72 for the reactor-
related GTCC waste. This is an administrative change that would be made
only to ensure consistency with the proposed description for fee
category 1.B. of Sec. 170.31 as described in A. above. The NRC is not
proposing an annual fee for this category of license.
In summary, the NRC is proposing to--
1. Establish rebaselined annual fees for FY 2002;
2. Modify part 171 to specifically authorize assessment of annual
fees to part 52 combined licenses;
3. Clarify that the annual fee exemption provision in
Sec. 171.11(c) applies only to ``operating'' reactors;
4. Make an administrative change to fee category 1.B. of
Sec. 171.16(d) to be consistent with the proposed change to category
1.B. of Sec. 170.31.

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 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 96 percent of its
budget authority in FY 2002 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 does not contain 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

[[Page 14828]]

Development Appropriations Act amended OBRA-90 to decrease the NRC's
fee recovery amount by 2 percent per year beginning in FY 2001, until
the fee recovery amount is 90 percent in FY 2005. The NRC's fee
recovery amount for FY 2002 is 96 percent. To comply with this
statutory requirement and in accordance with Sec. 171.13, the NRC is
publishing the proposed amount of the FY 2002 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 96 percent of the
Commission's FY 2002 budget of $559.1 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, $36.0 million has been appropriated from the General
Fund for activities related to homeland security. The FY 2002 Defense
Appropriations Act states that this $36.0 million shall be excluded
from license fee revenues.
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 96 percent of its FY 2002
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 would establish the schedules of fees that are
necessary to implement the Congressional mandate for FY 2002. The
proposed rule would result in increases in the annual fees charged to
certain licensees and holders of certificates, registrations, and
approvals, and decreases in annual fees for others, including those
that qualify as a small entity under NRC's size standards in 10 CFR
2.810. The Regulatory Flexibility Analysis, prepared in accordance with
5 U.S.C. 604, is included as Appendix A to this 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 2002.

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 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; the Energy Reorganization
Act of 1974, as amended; and 5 U.S.C. 553, the NRC is proposing to
adopt the following amendments to 10 CFR parts 170 and 171.

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

1. The authority citation for part 170 continues to read as
follows:

Authority: 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).

2. Section 170.3 is amended by revising the definition of Special
projects and adding, in alphabetical order, the definition for Greater
than Class C Waste or GTCC Waste to read as follows:

Sec. 170.3 Definitions.

* * * * *
Greater than Class C Waste or GTCC Waste means low-level
radioactive waste that exceeds the concentration limits of
radionuclides established for Class C waste in 10 CFR 61.55.
* * * * *
Special projects means those requests submitted to the Commission
for review for which fees are not otherwise specified in this chapter.
Examples of special projects include, but are not limited to, topical
report reviews, early site reviews, waste solidification facilities,
route approvals for shipment of radioactive materials, services
provided to certify licensee, vendor, or other private industry
personnel as instructors for part 55 reactor operators, reviews of
financial assurance submittals that do not require a license amendment,
reviews of responses to Confirmatory Action Letters, reviews of uranium
recovery licensees' land-use survey reports, and reviews of 10 CFR
50.71 final safety analysis reports.
* * * * *
3. In Sec. 170.11, paragraph (a)(1) is added to read as follows:

Sec. 170.11 Exemptions.

(a) * * *
(1) A special project that is a request/report submitted to the
NRC--
(i) 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;

[[Page 14829]]

(ii) 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
(iii) As a means of exchanging information between industry
organizations and the NRC for the specific purpose of supporting the
NRC's generic regulatory improvements or efforts.
(A) This fee exemption applies only when:
(1) It has been demonstrated that the report/request has been
submitted to the NRC specifically for the purpose of supporting NRC's
development of generic guidance and regulations (e.g., rules,
regulations, guides and policy statements); and
(2) The NRC, at the time the document is submitted, plans to use it
for one of the purposes given in paragraph (a)(1)(iii)(A)(1) of this
section. In this case, the exemption applies even if ultimately the NRC
does not use the document as planned.
(B) An example of the type of document that meets the fee exemption
criteria is a topical report that is submitted to the NRC for the
specific purpose of supporting the NRC's development of a Regulatory
Guide, and which the NRC plans to use in the development of that
Regulatory Guide.
(C) Fees will not be waived for reports/requests that are not
submitted specifically for the purpose of supporting the NRC's generic
regulatory improvements or efforts, because the primary beneficiary of
the NRC's review and approval of such documents is the requesting
organization. In this case, the waiver provision does not apply even
though the NRC may realize some benefits from its review and approval
of the document.
(D) An example of the type of document that does not meet the fee
waiver criteria is a topical report submitted for the purpose of
obtaining NRC approval so that the report can be used by the industry
in the future to address licensing or safety issues.
* * * * *
4. Section 170.20 is revised to read as follows:

Sec. 170.20 Average cost per professional staff-hour.

Fees for permits, licenses, amendments, renewals, special projects,
part 55 re-qualification and replacement examinations and tests, other
required reviews, approvals, and inspections under Secs. 170.21 and
170.31 will be calculated using the following applicable professional
staff-hour rates:

(a) Reactor Program (Sec. 170.21 Activities)--$156 per hour
(b) Nuclear Materials and Nuclear Waste Program (Sec. 170.31
Activities)--$152 per hour

5. In Sec. 170.21, the introductory text and, in the table,
Category J, Category K, and footnotes 1, 2, and 3 are revised and
footnote 4 is removed 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 Fees\1\ \2\
------------------------------------------------------------------------

* * * *
* * *
J. Special projects:
Approvals and preapplication/licensing Full Cost.
activities.
Inspections \3\........................... Full Cost.
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............... $9,900.
Amendment............................. $9,900.
2. Application for export of reactor and
other components requiring Executive
Branch review only, for example, those
actions under 10 CFR 110.41(a)(1)-(8).
Application-new license............... 5,800.
Amendment............................. 5,800.
3. Application for export of components
requiring foreign government assurances
only.
Application-new license............... 1,800.
Amendment............................. 1,800.
4. Application for export of facility
components and equipment not requiring
Commissioner review, Executive Branch
review, or foreign government assurances.
Application-new license............... 1,200.
Amendment............................. 1,200.
5. Minor amendment of any export or import
license to extend the expiration date,
change domestic information, or make
other revisions which do not require in-
depth analysis or review.

[[Page 14830]]

Amendment............................. 230.
------------------------------------------------------------------------
\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., 10 CFR 50.12, 73.5) and any other sections in
effect now or in the future, regardless of whether the approval is in
the form of a license amendment, letter of approval, safety evaluation
report, or other form. Fees for licenses in this schedule that are
initially issued for less than full power are based on review through
the issuance of a full power license (generally full power is
considered 100 percent of the facility's full rated power). Thus, if a
licensee received a low power license or a temporary license for less
than full power and subsequently receives full power authority (by way
of license amendment or otherwise), the total costs for the license
will be determined through that period when authority is granted for
full power operation. If a situation arises in which the Commission
determines that full operating power for a particular facility should
be less than 100 percent of full rated power, the total costs for the
license will be at that determined lower operating power level and not
at the 100 percent capacity.
\2\ Full cost fees will be determined based on the professional staff
time and appropriate contractual support services expended. For
applications currently on file and for which fees are determined based
on the full cost expended for the review, the professional staff hours
expended for the review of the application up to the effective date of
the final rule will be determined at the professional rates in effect
at the time the service was provided. For those applications currently
on file for which review costs have reached an applicable fee ceiling
established by the June 20, 1984, and July 2, 1990, rules but are
still pending completion of the review, the cost incurred after any
applicable ceiling was reached through January 29, 1989, will not be
billed to the applicant. Any professional staff-hours expended above
those ceilings on or after January 30, 1989, will be assessed at the
applicable rates established by Sec. 170.20, as appropriate, except
for topical reports whose costs exceed $50,000. Costs which exceed
$50,000 for any topical report, amendment, revision or supplement to a
topical report completed or under review from January 30, 1989,
through August 8, 1991, will not be billed to the applicant. Any
professional hours expended on or after August 9, 1991, will be
assessed at the applicable rate established in Sec. 170.20.
\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.

6. 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. The following 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\ Fees 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 and reactor-related Greater
than Class C (GTCC) waste 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........................... $700.
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........................... $1,400.
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.

[[Page 14831]]

B. Licenses which authorize the
possession, use, and/or installation of
source material for shielding:
Application........................... $170.
C. All other source material licenses:
Application........................... $6,000.
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........................... $7,100.
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........................... $2,300.
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 Sec.
170.11(a)(4). These licenses are covered
by fee Category 3D.
Application........................... $9,200.
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 Sec.
170.11(a)(4).
Application........................... $2,600.
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........................... $1,800.
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........................... $3,600.
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........................... $8,500.
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........................... $2,400.
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........................... $3,600.
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........................... $1,100.
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........................... $620.
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........................... $6,000.
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........................... $2,600.
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........................... $2,700.
O. Licenses for possession and use of
byproduct material issued under part 34
of this chapter for industrial
radiography operations:
Registration.......................... $4,400.
P. All other specific byproduct material
licenses, except those in Categories 4A
through 9D:
Application........................... $1,400.
Q. Registration of a device(s) generally
licensed under part 31 of this chapter:
Application........................... $450.
4. Waste disposal and processing:

[[Page 14832]]

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........................... $1,800.
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........................... $2,700.
5. Well logging:
A. Licenses for possession and use of
byproduct material, source material, and/
or special nuclear material for well
logging, well surveys, and tracer studies
other than field flooding tracer studies:
Application........................... $5,900.
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........................... $12,100.
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........................... $6,600.
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........................... $4,700.
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........................... $2,300.
8. Civil defense:
A. Licenses for possession and use of
byproduct material, source material, or
special nuclear material for civil
defense activities:
Application........................... $350.
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.............. $5,600.
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.............. $5,600.
C. Safety evaluation of sealed sources
containing byproduct material, source
material, or special nuclear material,
except reactor fuel, for commercial
distribution:
Application--each source.............. $1,700.
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.............. $580.
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........................... $680.
Inspections........................... Full Cost.
11. Review of standardized spent fuel
facilities:
Licensing and inspection.................. Full Cost.
12. Special projects:
Approvals and preapplication/Licensing Full Cost.
activities.
Inspections............................... Full Cost.
13. A. Spent fuel storage cask Certificate of
Compliance:
Licensing............................. Full Cost.
B. Inspections related to spent fuel Full Cost.
storage cask Certificate of Compliance.
C. Inspections related to storage of spent Full Cost.
fuel under Sec. 72.210 of this chapter.
14. Byproduct, source, or special nuclear
material licenses and other approvals
authorizing decommissioning, decontamination,
reclamation, or site restoration activities
under parts 30, 40, 70, 72, and 76 of this
chapter:
Licensing and inspection.................. Full Cost.

[[Page 14833]]

15. Import and Export licenses:
Licenses issued under part 110 of this
chapter for the import and export only of
special nuclear material, source
material, tritium and other byproduct
material, heavy water, or nuclear grade
graphite.
A. Application for export or import of
high enriched uranium and other
materials, including radioactive waste,
which must be reviewed by the
Commissioners and the Executive Branch,
for example, those actions under 10 CFR
110.40(b). This category includes
application for export or import of
radioactive wastes in multiple forms from
multiple generators or brokers in the
exporting country and/or going to
multiple treatment, storage or disposal
facilities in one or more receiving
countries.
Application--new license.............. $9,900.
Amendment............................. $9,900.
B. Application for export or import of
special nuclear material, source
material, tritium and other byproduct
material, heavy water, or nuclear grade
graphite, including radioactive waste,
requiring Executive Branch review but not
Commissioner review. This category
includes application for the export or
import of radioactive waste involving a
single form of waste from a single class
of generator in the exporting country to
a single treatment, storage and/or
disposal facility in the receiving
country.
Application--new license.............. $5,800.
Amendment............................. $5,800.
C. Application for export of routine
reloads of low enriched uranium reactor
fuel and exports of source material
requiring only foreign government
assurances under the Atomic Energy Act.
Application--new license.............. $1,800.
Amendment............................. $1,800.
D. Application for export or import of
other materials, including radioactive
waste, not requiring Commissioner review,
Executive Branch review, or foreign
government assurances under the Atomic
Energy Act. This category includes
application for export or import of
radioactive waste where the NRC has
previously authorized the export or
import of the same form of waste to or
from the same or similar parties,
requiring only confirmation from the
receiving facility and licensing
authorities that the shipments may
proceed according to previously agreed
understandings and procedures.
Application--new license.............. $1,200.
Amendment............................. $1,200.
E. Minor amendment of any export or import
license to extend the expiration date,
change domestic information, or make
other revisions which do not require in-
depth analysis, review, or consultations
with other agencies or foreign
governments.
Amendment............................. $230.
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 in effect now or in the future), regardless of whether the
approval is in the form of a license amendment, letter of approval,
safety evaluation report, or other form. In addition to the fee shown,
an applicant may be assessed an additional fee for sealed source and
device evaluations as shown in Categories 9A through 9D.
\3\ Full cost fees will be determined based on the professional staff
time multiplied by the appropriate professional hourly rate
established in Sec. 170.20 in effect at the time the service is
provided, and the appropriate contractual support services expended.
For applications currently on file for which review costs have reached
an applicable fee ceiling established by the June 20, 1984, and July
2, 1990, rules, but are still pending completion of the review, the
cost incurred after any applicable ceiling was reached through January
29, 1989, will not be billed to the applicant. Any professional staff-
hours expended above those ceilings on or after January 30, 1989, will
be assessed at the applicable rates established by Sec. 170.20, as
appropriate, except for topical reports whose costs exceed $50,000.
Costs which exceed $50,000 for each topical report, amendment,
revision, or supplement to a topical report completed or under review
from January 30, 1989, through August 8, 1991, will not be billed to
the applicant. Any professional hours expended on or after August 9,
1991, will be assessed at the applicable rate established in Sec.
170.20.
\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.

[[Page 14834]]

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

7. The authority citation for part 171 continues to read as
follows:

Authority: Sec. 7601, Pub. L. 99-272, 100 Stat. 146, as amended
by sec. 5601, Pub. L. 100-203, 101 Stat. 1330, as amended by sec.
3201, Pub. L. 101-239, 103 Stat. 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).

8. Section 171.3 is revised to read as follows:

Sec. 171.3. Scope.

The regulations in this part apply to any person holding an
operating license for a power reactor, test reactor or research reactor
issued under part 50 of this chapter and to any person holding a
combined license issued under part 52 of this chapter that authorizes
operation of a power reactor. The regulations in this part also apply
to any person holding a materials license as defined in this part, a
Certificate of Compliance, a sealed source or device registration, a
quality assurance program approval, and to a Government agency as
defined in this part.
9. In Sec. 171.5, the definition of Greater than Class C Waste or
GTCC waste is added in alphabetical order to read as follows:

Sec. 171.5 Definitions.

* * * * *
Greater than Class C Waste or GTCC waste means low-level
radioactive waste that exceeds the concentration limits of
radionuclides established for Class C waste in 10 CFR 61.55.
* * * * *
10. In Sec. 171.11, paragraph (c) is revised to read as follows:

Sec. 171.11 Exemptions.

* * * * *
(c) An exemption for operating reactors under this provision may be
granted by the Commission taking into consideration each of the
following factors:
(1) Age of the reactor;
(2) Size of the reactor;
(3) Number of customers in rate base;
(4) Net increase in KWh cost for each customer directly related to
the annual fee assessed under this part; and
(5) Any other relevant matter which the licensee believes justifies
the reduction of the annual fee.
* * * * *
11. Section 171.15 is revised to read as follows:

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

(a) Each person licensed to operate a power, test, or research
reactor; each person holding a part 50 power reactor license that is in
decommissioning or possession only status, except those that have no
spent fuel on-site; and each person holding a part 72 license who does
not hold a part 50 license shall pay the annual fee for each license
held at any time during the Federal FY in which the fee is due. This
paragraph does not apply to test and research reactors exempted under
Sec. 171.11(a).
(b)(1) The FY 2002 annual fee for each operating power reactor
which must be collected by September 30, 2002, is $2,869,000.
(2) The FY 2002 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 2002 spent storage/reactor decommissioning
base annual fee are shown in paragraph (c)(2)(i) and (ii) of this
section. The activities comprising the FY 2002 surcharge are shown in
paragraph (d)(1) of this section. The activities comprising the FY 2002
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 2002 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 $239,000.
(2) The FY 2002 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 2002 surcharge are shown in paragraph (d)(1) of this
section. The activities comprising the FY 2002 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 2002 surcharge are as
follows:
(i) Low level waste disposal generic activities;
(ii) Activities not attributable to an existing NRC licensee or
class of licenses (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, 5 U.S.C. 601 et seq.
(2) The total FY 2002 surcharge allocated to the operating power
reactor class of licenses is $35.3 million, not including the amount
allocated to the spent fuel storage/reactor decommissioning class. The
FY 2002 operating power reactor surcharge to be assessed to each
operating power reactor is approximately $339,400. This amount is
calculated by dividing the total operating power reactor surcharge
($35.3 million) by the number of operating power reactors (104).
(3) The FY 2002 surcharge allocated to the spent fuel storage/
reactor decommissioning class of licenses is $3.3 million. The FY 2002
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 $27,300. This amount is

[[Page 14835]]

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 2002 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--$71,300
Test reactor--$71,300

12. 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 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. The small entity fees are as
follows:

------------------------------------------------------------------------
Maximum
annual
fee per
licensed
category
------------------------------------------------------------------------
Small Businesses Not Engaged in Manufacturing and Small Not-
For-Profit Organizations (Gross Annual Receipts):
$350,000 to $5 million................................... $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 2002 annual fees are comprised of a base annual fee and
an additional charge (surcharge). The activities comprising the FY 2002
surcharge are shown for convenience in paragraph (e) of this section.
The FY 2002 annual fees for materials licensees and holders of
certificates, registrations or approvals subject to fees under this
section are shown in the following table:

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.................... $4,073,000
Nuclear Fuel Services, SNM-124.............. 4,073,000
(b) Low Enriched Uranium in Dispersible Form
Used for Fabrication of Power Reactor Fuel:
General Electric Company, SNM-1097.......... 1,366,000
Siemens Nuclear Power, SNM-1227............. 1,366,000
Westinghouse Electric Company, SNM-1107..... 1,366,000
(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................... 537,000
(b) All Others:
General Electric SNM-960.................... 390,000
B. Licenses for receipt and storage of spent fuel \11\ N/A
and reactor-related Greater than Class C (GTCC)
waste at an independent spent fuel storage
installation (ISFSI)...............................
C. Licenses for possession and use of special 1,500
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, 3,600
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 2,537,000
uranium enrichment facility........................
2. Source material:
A.(1) Licenses for possession and use of source 585,000
material for refining uranium mill concentrates to
uranium hexafluoride...............................

[[Page 14836]]

(2) Licenses for possession and use of source
material in recovery operations such as milling, in-
situ leaching, heap-leaching, ore buying stations,
ion exchange facilities and in processing of ores
containing source material for extraction of metals
other than uranium or thorium, including licenses
authorizing the possession of byproduct waste
material (tailings) from source material recovery
operations, as well as licenses authorizing the
possession and maintenance of a facility in a
standby mode.
Class I facilities \4\.......................... 77,700
Class II facilities \4\......................... 65,100
Other facilities \4\............................ 68,400
(3) Licenses that authorize the receipt of byproduct 47,900
material, as defined in Section 11e.(2) of the
Atomic Energy Act, from other persons for
possession and disposal, except those licenses
subject to the fees in Category 2A(2) or Category
2A(4)..............................................
(4) Licenses that authorize the receipt of byproduct 7,600
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 760
and/or installation of source material for
shielding..........................................
C. All other source material licenses............... 12,300
3. Byproduct material:
A. Licenses of broad scope for possession and use of 22,400
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 5,700
byproduct material issued under part 30 of this
chapter for processing or manufacturing of items
containing byproduct material for commercial
distribution.......................................
C. Licenses issued under Secs. 32.72, 32.73, and/or 14,000
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 Sec. 171.11(a)(1).
These licenses are covered by fee Category 3D......
D. Licenses and approvals issued under Secs. 32.72, 4,500
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 Sec.
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 3,600
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 6,500
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 23,200
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 3,700
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 5,300
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 2,400
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 1,600
this chapter to distribute items containing
byproduct material or quantities of byproduct
material that do not require sealed source and/or
device review to persons generally licensed under
part 31 of this chapter, except specific licenses
authorizing redistribution of items that have been
authorized for distribution to persons generally
licensed under part 31 of this chapter.............
L. Licenses of broad scope for possession and use of 11,200
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 4,900
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 5,300
services are subject to the fees specified in
fee Categories 4A, 4B, and 4C..................
O. Licenses for possession and use of byproduct 13,700
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, 2,700
except those in Categories 4A through 9D...........
Q. Registration of devices generally licensed \13\ N/A
pursuant to part 31 of this chapter................

[[Page 14837]]

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 10,300
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 8,100
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 10,000
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 of 19,200
items contaminated with byproduct material, source
material, or special nuclear material..............
7. Medical licenses:
A. Licenses issued under parts 30, 35, 40, and 70 of 15,500
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 26,200
institutions or two or more physicians under parts
30, 33, 35, 40, and 70 of this chapter authorizing
research and development, including human use of
byproduct material except licenses for byproduct
material, source material, or special nuclear
material in sealed sources contained in teletherapy
devices. This category also includes the possession
and use of source material for shielding when
authorized on the same license.\9\.................
C. Other licenses issued under parts 30, 35, 40, and 5,100
70 of this chapter for human use of byproduct
material, source material, and/or special nuclear
material except licenses for byproduct material,
source material, or special nuclear material in
sealed sources contained in teletherapy devices.
This category also includes the possession and use
of source material for shielding when authorized on
the same license.\9\...............................
8. Civil defense:
A. Licenses for possession and use of byproduct 1,200
material, source material, or special nuclear
material for civil defense activities..............
9. Device, product, or sealed source safety evaluation:
A. Registrations issued for the safety evaluation of 6,700
devices or products containing byproduct material,
source material, or special nuclear material,
except reactor fuel devices, for commercial
distribution.......................................
B. Registrations issued for the safety evaluation of 6,700
devices or products containing byproduct material,
source material, or special nuclear material
manufactured in accordance with the unique
specifications of, and for use by, a single
applicant, except reactor fuel devices.............
C. Registrations issued for the safety evaluation of 2,000
sealed sources containing byproduct material,
source material, or special nuclear material,
except reactor fuel, for commercial distribution...
D. Registrations issued for the safety evaluation of 690
sealed sources containing byproduct material,
source material, or special nuclear material,
manufactured in accordance with the unique
specifications of, and for use by, a single
applicant, except reactor fuel.....................
10. Transportation of radioactive material:
A. Certificates of Compliance or other package
approvals issued for design of casks, packages, and
shipping containers.
Spent Fuel, High-Level Waste, and plutonium air \6\ N/A
packages.......................................
Other Casks..................................... \6\ N/A
B. Quality assurance program approvals issued under
part 71 of this chapter.
Users and Fabricators........................... 72,800
Users........................................... 7,300
11. Standardized spent fuel facilities.................. \6\ N/A
12. Special Projects.................................... \6\ N/A
13. A. Spent fuel storage cask Certificate of Compliance \6\ N/A
B. General licenses for storage of spent fuel under \12\ N/A
10 CFR 72.210......................................
14. Byproduct, source, or special nuclear material \7\ N/A
licenses and other approvals authorizing
decommissioning, decontamination, reclamation, or site
restoration activities under 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 283,000
Government agencies....................................
18. Department of Energy:
A. Certificates of Compliance....................... \10\ 1,368,000

[[Page 14838]]

B. Uranium Mill Tailing Radiation Control Act 1,056,000
(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, 2001, and permanently ceased
licensed activities entirely by September 30, 2001. 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 Sec. 171.15(c).
\12\ See Sec. 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 licenses; 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, 5 U.S.C. 601 et seq.).

Dated at Rockville, Maryland, this 19th day of March, 2002.

For the Nuclear Regulatory Commission.
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 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 by 2
percent per year beginning in FY 2001, until the fee recovery amount
is 90 percent in FY 2005. In addition, $36 million has been
appropriated from the General Fund, and therefore not subject to fee
recovery, for activities related to homeland security. The amount to
be recovered for FY 2002 is approximately $479.5 million.
OBRA-90 requires that the schedule of charges established by
rule should fairly and equitably allocate the total amount to be
recovered from the 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 licenses, the annual fee base would be
recalculated.
In FY 1999, the NRC concluded that there had been significant
changes in the allocation

[[Page 14839]]

of agency resources among the various classes of licenses 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 is a substantial change in the total NRC
budget or the magnitude of the budget allocated to a specific class
of licenses, in which case the annual fee base would be
reestablished.
Based on the change in the magnitude of the budget to be
recovered through fees, the Commission has determined that it is
appropriate to rebaseline its part 171 annual fees again in FY 2002.
Rebaselining fees would result in increased annual fees for a
majority of the categories of licenses, and decreased 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
2002 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 1,300 licensees for FY 2001) 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.
Approximately 3,000 license, approval, and registration
terminations have been requested since the NRC first established
annual fees for materials licenses. 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 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

[[Page 14840]]

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.
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.
As stated in the 2001 Regulatory Flexibility Analysis, (66 FR
32452; June 14, 2001), the NRC will 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 (65
FR 36946; June 12, 2000). Therefore, the FY 2002 small entity annual
fee will remain at $2,300, and the lower tier small entity annual
fee will remain at $500. The NRC plans to re-examine the small
entity fees in FY 2003.

IV. Summary

The NRC has determined that the 10 CFR part 171 annual fees
significantly impact a substantial number of small entities. A
maximum fee for small entities strikes a balance between the
requirement to recover 96 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 2001 fee rule remain valid for FY
2002.

Attachment 1 to Appendix A; U. S. Nuclear Regulatory Commission Small
Entity Compliance Guide--Fiscal Year 2002

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 guide has been prepared to assist NRC material licensees comply
with the FY 2002 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 2002 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 ``License Fees'' 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;
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 an educational program
for which it awards academic degrees, and whose educational programs
are available to the public.
---------------------------------------------------------------------------

To further assist licensees in determining if they qualify as a
small entity, we are providing the following guidelines, which are
based on the Small Business Administration's regulations (13 CFR
part 121).
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:

[[Page 14841]]

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.
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
``License Fees'' 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 can 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 licensee qualifies, resulting in a
fee of either $1150 or $250 for each fee category billed, instead of
the full small entity annual fee of $2,300 or $500.
A new small entity form (NRC Form 526) must be filed with the
NRC each fiscal year to qualify for reduced fees in that year.
Because a licensee's ``size,'' or the size standards, may change
from year to year, the invoice reflects the full fee and a new Form
526 must be completed and returned in order for the fee to be
reduced to the small entity fee amount. LICENSEES WILL NOT BE ISSUED
A NEW INVOICE FOR THE REDUCED AMOUNT. The completed NRC Form 526,
the payment of the appropriate small entity fee, and the ``Payment
Copy `` of the invoice should be mailed to the U.S. Nuclear
Regulatory Commission, License Fee and Accounts Receivable Branch at
the address indicated on the invoice.
If you have questions regarding the NRC's annual fees, please
call the license fee staff at 301-415-7554, e-mail the fee staff at
fees@nrc.gov, or write to the U.S. Nuclear Regulatory Commission,
Washington, DC 20555, Attention: Office of the Chief Financial
Officer.
False certification of small entity status could result in civil
sanctions being imposed by the NRC under the Program Fraud Civil
Remedies Act, 31 U.S.C. 3801 et seq. NRC's implementing regulations
are found at 10 CFR part 13.

[FR Doc. 02-7114 Filed 3-26-02; 8:45 am]
BILLING CODE 7590-01-P

Notices For
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2007
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2002
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