[Federal Register Volume 59, Number 89 (Tuesday, May 10, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10916]


[[Page Unknown]]

[Federal Register: May 10, 1994]


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NUCLEAR REGULATORY COMMISSION

10 CFR Parts 170 and 171

RIN 3150-AF03

 

Revision of Fee Schedules; 100% Fee Recovery, FY 1994

AGENCY: Nuclear Regulatory Commission.

ACTION: Proposed rule.

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

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 
Public Law 101-508, enacted November 5, 1990, which mandates that the 
NRC recover approximately 100 percent of its budget authority in Fiscal 
Year (FY) 1994 less amounts appropriated from the Nuclear Waste Fund 
(NWF). The amount to be recovered for FY 1994 is approximately $513 
million.

DATES: The comment period expires June 9, 1994. 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 Public Law 101-508 requires that NRC 
collect the FY 1994 fees by September 30, 1994, requests for extensions 
of the comment period will not be granted.

ADDRESSES: Submit written comments to: Secretary, U.S. Nuclear 
Regulatory Commission, Washington, DC 20555, ATTN: Docketing and 
Service Branch.
    Hand deliver comments to: 11555 Rockville Pike, Rockville, Maryland 
20852, between 7:30 am and 4:15 pm Federal workdays. (Telephone 301-
504-1678).
    Copies of comments received and the agency workpapers that support 
these proposed changes to 10 CFR parts 170 and 171 may be examined at 
the NRC Public Document Room at 2120 L Street NW. (Lower Level), 
Washington, DC 20555.

FOR FURTHER INFORMATION CONTACT: C. James Holloway, Jr., Office of the 
Controller, U.S. Nuclear Regulatory Commission, Washington, DC 20555, 
Telephone 301-492-4301.

SUPPLEMENTARY INFORMATION:

I. Background.
II. Proposed Action.
III. Section-by-Section Analysis.
IV. Environmental Impact: Categorical Exclusion.
V. Paperwork Reduction Act Statement.
VI. Regulatory Analysis.
VII. Regulatory Flexibility Analysis.
VIII. Backfit Analysis.

I. Background

    Public Law 101-508, the Omnibus Budget Reconciliation Act of 1990 
(OBRA-90), enacted November 5, 1990, requires that the NRC recover 
approximately 100 percent of its budget authority less the amount 
appropriated from the Department of Energy (DOE) administered NWF for 
FYs 1991 through 1995 by assessing fees. OBRA-90 was amended in 1993 to 
extend the NRC's 100 percent fee recovery requirement through 1998.
    The NRC assesses two types of fees to recover its budget authority. 
First, license and inspection fees, established in 10 CFR part 170 
under the authority of the Independent Offices Appropriation Act 
(IOAA), 31 U.S.C. 9701, recover the NRC's costs of providing 
individually identifiable services to specific applicants and 
licensees. The services provided by the NRC for which these fees are 
assessed include the review of applications for the issuance of new 
licenses or approvals, amendments to or renewal of licenses or 
approvals, and inspections of licensed activities. Second, annual fees, 
established in 10 CFR part 171 under the authority of OBRA-90, recover 
generic and other regulatory costs not recovered through 10 CFR part 
170 fees.
    Subsequent to enactment of OBRA-90, the NRC published five final 
fee rules after evaluation of public comments. On July 10, 1991 (56 FR 
31472), the NRC published a final rule in the Federal Register that 
established the Part 170 professional hourly rate and the materials 
licensing and inspection fees, as well as the Part 171 annual fees, to 
be assessed to recover approximately 100 percent of the FY 1991 budget. 
In addition to establishing the FY 1991 fees, the final rule 
established the underlying basis and methodology for determining both 
the 10 CFR part 170 hourly rate and fees and the 10 CFR part 171 annual 
fees. The FY 1991 rule was challenged in Federal court by several 
parties; the U.S. Court of Appeals for the District of Columbia Circuit 
rendered its decision on March 16, 1993, remanding two issues to the 
NRC for further consideration (988 F.2d 146 (D.C. Cir. 1993)). The 
court decision was also extended to cover the FY 1992 fee rule by court 
order dated April 30, 1993.
    On April 17, 1992 (57 FR 13625), the NRC published in the Federal 
Register two limited changes to 10 CFR parts 170 and 171. The limited 
changes became effective May 18, 1992. The limited change to 10 CFR 
part 170 allowed the NRC to bill quarterly for those license fees that 
were previously billed every six months. The limited change to 10 CFR 
part 171 lowered in some cases the maximum annual fee of $1,800 
assessed a materials licensee who qualifies as a small entity under the 
NRC's size standards. A lower tier small entity fee of $400 per 
licensed category was established for small business and non-profit 
organizations with gross annual receipts of less than $250,000 and 
small governmental jurisdictions with a population of less than 20,000.
    On July 23, 1992 (57 FR 32691), and July 20, 1993 (58 FR 38666), 
the NRC published final rules in the Federal Register that established 
the licensing, inspection, and annual fees necessary for the NRC to 
recover approximately 100 percent of its budget authority for FY 1992 
and FY 1993 respectively. The basic methodology used in the FY 1992 and 
FY 1993 final rules was unchanged from that used to calculate the 10 
CFR part 170 professional hourly rate, the specific materials licensing 
and inspection fees in 10 CFR part 170, and the 10 CFR part 171 annual 
fees in the final rule published July 10, 1991 (56 FR 31472). The 
methodology for assessing low-level waste (LLW) costs was changed in FY 
1993 in response to the judicial decision mentioned earlier. This 
change was explained in detail in the FY 1993 final rule published July 
20, 1993 (58 FR 38669-72). The NRC created two groups--large waste 
generators and small waste generators. Licensees within each group are 
charged a uniform flat fee.
    On March 17, 1994 (59 FR 12539), the NRC reinstated the annual fee 
exemption for nonprofit educational institutions after notice and 
comment. In response to the March 16, 1993 judicial decision, the 
exemption had been eliminated in the final rule published by NRC on 
July 20, 1993 (58 FR 38666).
    The American College of Nuclear Physicians and the Society of 
Nuclear Medicine filed a Petition for Rulemaking which included a 
request that the Commission exempt medical licensees from fees for 
services provided in nonprofit institutions. The Commission denied that 
request on March 17, 1994, (59 FR 12555).
    Section 2903(c) of the Energy Policy Act of 1992 required the NRC 
to undertake a broad review of its annual fee policies under section 
6101(c) of OBRA-90, solicit public comment on the need for policy 
changes, and recommend changes in existing law to the Congress that the 
NRC found were needed to prevent the placement of an unfair burden on 
certain NRC licensees. To comply with the Energy Policy Act 
requirements, the NRC reviewed more than 500 public comments submitted 
in response to the request for comment published in the Federal 
Register on April 19, 1993 (58 FR 21116), and sent its report to 
Congress on February 23, 1994. A copy of this report has been placed in 
the Public Document Room.

II. Proposed Action

    The NRC is proposing to amend its licensing, inspection, and annual 
fees for FY 1994. OBRA-90 requires that the NRC recover approximately 
100 percent of its FY 1994 budget authority, including the budget 
authority for its Office of the Inspector General, less the 
appropriations received from the NWF, by assessing licensing, 
inspection, and annual fees.
    For FY 1994, the NRC's budget authority was originally $547.7 
million. The Commission, in its effort to streamline operations, 
proposed a $12.7 million rescission to the original appropriation for 
FY 1994. Congress approved this NRC proposed reduction resulting in a 
revised budget authority of $535.0 million. Approximately $22.0 million 
of the revised budget was appropriated from the NWF. Therefore, OBRA-90 
requires that the NRC collect approximately $513.0 million in FY 1994 
through 10 CFR part 170 licensing and inspection fees and 10 CFR part 
171 annual fees. This amount for FY 1994 is about $6 million less than 
the total amount for FY 1993. The NRC estimates that approximately 
$116.2 million will be recovered in FY 1994 from the fees assessed 
under 10 CFR part 170. The remaining $396.8 million will be recovered 
through the 10 CFR part 171 annual fees established for FY 1994.
    The NRC has not changed the basic approach, policies, or 
methodology for calculating the 10 CFR part 170 professional hourly 
rate, the specific materials licensing and inspection fees in 10 CFR 
part 170, and the 10 CFR part 171 annual fees set forth in the final 
rules published July 10, 1991 (56 FR 31472), July 23, 1992 (57 FR 
32691), and July 20, 1993 (58 FR 38666) with the following exceptions. 
The Commission has reinstated the annual fee exemption for nonprofit 
educational institutions. In this proposed rule, the NRC has directly 
assigned additional effort to the reactor and materials programs for 
the Office of Investigations, the Office of Enforcement, the Advisory 
Committee on Reactor Safeguards, and the Advisory Committee on Nuclear 
Waste. Resources for these activities had previously been included in 
overhead, but are now assigned directly to the class of licenses that 
they support. As a result of this direct assignment, the cost per 
direct FTE is about 3% less than it would have been without the 
additional direct assignment.
    The NRC contemplates that any fees to be collected as a result of 
this proposed rule will be assessed on an expedited basis to ensure 
collection of the required fees by September 30, 1994, as stipulated in 
the Public Law. Therefore, as in FY 1991, FY 1992, and FY 1993, the 
fees, if adopted, will become effective 30 days after publication of 
the final rule in the Federal Register. The NRC will send a bill for 
the amount of the annual fee to the licensee or certificate, 
registration, or approval holder upon publication of the final rule. 
Payment is due on the effective date of the FY 1994 rule, which is 
estimated to be August 1, 1994.

A. Amendments to 10 CFR part 170: Fees for Facilities, Materials, 
Import and Export Licenses, and Other Regulatory Services

    The NRC proposes four amendments to part 170. These amendments do 
not change the underlying basis for the regulation--that fees be 
assessed to applicants, persons, and licensees for specific 
identifiable services rendered. These revisions also comply with the 
guidance in the Conference Committee Report on OBRA-90 that fees 
assessed under the Independent Offices Appropriation Act (IOAA) recover 
the full cost to the NRC of all identifiable regulatory services each 
applicant or licensee receives.
    First, the NRC proposes that the agency-wide professional hourly 
rate, which is used to determine the part 170 fees, be increased from 
$132 per hour to $133 per hour ($231,216 per direct FTE). The rate is 
based on the FY 1994 direct FTEs and that portion of the FY 1994 budget 
that is not direct program support (contractual services costs) and not 
recovered through the appropriation from the NWF. As indicated earlier, 
the decrease in the FY 1994 budget compared to the FY 1993 budget is 
primarily for direct program support which is not included in the 
hourly rate. Thus, the reduction in the budget has limited impact on 
the hourly rate but will show as a direct reduction to the amount 
allocated to the various classes of licensees.
    Second, the NRC proposes that the current part 170 licensing and 
inspection fees in Secs. 170.21 and 170.31 for all applicants and 
licensees be adjusted to reflect the very small increase in the hourly 
rate.
    Third, the NRC is also proposing to revise the definition of 
special projects as provided in Sec. 170.3 of the regulations. This 
change is proposed because of (1) our experience in implementing the 
100 percent fee recovery program during the past three years and (2) 
the NRC's most recent fee policy review that was required by the Energy 
Policy Act of 1992. The NRC believes that the costs for some requests 
or reports being filed with NRC are more appropriately captured in the 
10 CFR part 171 annual fees rather than assessing specific fees under 
10 CFR part 170. These reports, although submitted by a specific 
organization, support NRC's development of generic guidance and 
regulations (e.g., rules, regulatory guides and policy statements), and 
resolution of safety issues applicable to a class of licensees such as 
those addressed in generic letters. Therefore, the NRC proposes that 
the definition in Sec. 170.3 as well as the footnotes in Secs. 170.21 
and 170.31 be revised to indicate that 10 CFR part 170 fees will not be 
assessed for requests/reports which have been submitted to the NRC:
    (1) In response to a Generic Letter or NRC Bulletin that does not 
result in an amendment to the license, does not result in the review of 
an alternate method or reanalysis to meet the requirements of the 
Generic Letter or does not involve an unreviewed safety issue;
    (2) In response to an NRC request (at the Associate Office Director 
level or above) to resolve an identified safety or environmental issue, 
or to assist NRC in developing a rule, regulatory guide, policy 
statement, generic letter, or bulletin; or
    (3) As a means of exchanging information between industry 
organizations and the NRC for the purpose of supporting generic 
regulatory improvements or efforts.
    Fourth, the NRC is proposing to amend Category 16 of Sec. 170.31, 
reciprocity, to include a fee to recover the costs expended by the NRC 
for the review of revisions to the information submitted on the NRC 
Form 241 filed by 10 CFR 150.20 general licensees during the remainder 
of the calendar year. Persons engaging in activities in a non-Agreement 
State under the reciprocity provisions of Sec. 150.20 are required to 
file an NRC Form 241 for the initial application in a calendar year. 
Revisions to the initial NRC Form 241 are filed for review and 
authorization in lieu of filing additional Forms 241 when persons using 
the 10 CFR 150.20 general license either add locations of work, use 
different radioactive material or perform additional work activities in 
a non-Agreement State.

B. Amendments to 10 CFR part 171: Annual Fees for Reactor Operating 
Licenses, and Fuel Cycle Licenses and Materials Licenses, Including 
Holders of Certificates of Compliance, Registrations, and Quality 
Assurance Program Approvals and Government Agencies Licensed by NRC

    The NRC proposes six amendments to 10 CFR Part 171. First, the NRC 
is proposing to amend Sec. 171.11(a)(2) to provide that State-owned 
research reactors used primarily for education and training and 
academic research purposes will be exempt from the annual fee. The NRC 
believes that this proposed change is consistent with the legislative 
intent of the Energy Policy Act of 1992 that government-owned research 
reactors be exempt from annual fees if they meet the technical design 
criteria of the exemption and are used primarily for educational 
training and research purposes.
    Second, NRC proposes to amend Secs. 171.15 and 171.16 to revise the 
annual fees for FY 1994 to recover approximately 100 percent of the FY 
1994 budget authority less fees collected under 10 CFR Part 170 and 
funds appropriated from the NWF.
    Third, NRC proposes to amend fee Category 18 of Sec. 171.16(d) to 
assess fees to the Department of Energy (DOE) for the general license 
in 10 CFR 40.27. The general license fulfills a requirement of the 
Uranium Mill Tailings Radiation Control Act of 1978 (UMTRCA) (Pub. L. 
95-604) that the perpetual custodian of reclaimed uranium mill tailings 
piles be licensed by the NRC. The general license provided for in the 
regulation covers only post-reclamation closure custody and site 
surveillance. Based on NRC's acceptance of DOE's Long Term Surveillance 
Plan for the Spook, Wyoming site on September 21, 1993, the site is now 
subject to the general license in 10 CFR 40.27. Because DOE now holds 
an NRC license, it is subject to annual fees. The NRC had previously 
indicated its intent to bill DOE for UMTRCA costs once post-closure was 
achieved and the sites were licensed by the Government (56 FR 31481, 
July 10, 1991). As a result, DOE would be billed for the costs 
associated with NRC's UMTRCA review of all activities associated with 
the facilities assigned to DOE under UMTRCA. As with other licensees, 
the annual fee for this class of licensees (DOE UMTRCA facilities) will 
recover the generic and other regulatory costs not recovered through 10 
CFR Part 170 fees. Since DOE, as a Federal agency, cannot be assessed 
Part 170 fees under the Independent Offices Appropriation Act of 1952 
(IOAA), the result is that NRC proposes to assess annual fees for the 
total costs of DOE UMTRCA activities to DOE.
    Fourth, the NRC is proposing to amend 10 CFR 171.17 to add a 
proration provision for materials licenses and to revise the proration 
provision for reactors. The annual fee for materials licensees would be 
prorated based on applications filed after October 1 of the fiscal year 
either to reduce the scope of a license or to terminate a license. 
Those materials licensees who file applications between October 1 and 
March 31 of the fiscal year to downgrade the license or terminate the 
license would pay one-half the annual fee stated in Sec. 171.16(d) for 
the affected fee category(ies). Those materials licensees filing 
applications on or after April 1 of the fiscal year to downgrade or 
terminate a license would pay the full annual fee. Those licensees who 
file for termination or downgrade must also permanently cease 
operations of those licensed activities during the periods mentioned 
for the fees to be reduced. Similarly, materials licensees who were 
issued new licenses or licenses of increased scope during the fiscal 
year would also be charged a prorated annual fee based on the date of 
issuance of the new license or license amendment increasing its scope. 
New materials licenses issued during the period October 1 through March 
31 would be assessed one-half of the annual fee stated in 
Sec. 171.16(d) for the applicable fee category(ies). New licenses 
issued on or after April 1 would not be assessed an annual fee.
    In addition, materials licenses amended during the period from 
October 1 through March 31 to increase the scope would be assessed one-
half the annual fee for the new fee category(ies). Materials licenses 
amended on or after April 1 to increase the scope of the license would 
not be assessed the annual fee for the new fee category(ies).
    The NRC proposes to amend the proration provision in Sec. 171.17 
applicable to reactors to provide that for licensees who have requested 
amendment to withdraw operating authority permanently during the FY the 
annual fee will be prorated based on the number of days during the FY 
the operating license was in effect before the possession only license 
was issued or the license was terminated.
    Fifth, the NRC is proposing to modify Footnote 1 of 10 CFR 
171.16(d) to provide for a waiver of the annual fees for those 
materials licensees, and holders of certificates, registrations, and 
approvals who either filed for termination of their license or approval 
or filed for a possession only/storage license prior to October 1, 
1993, and permanently ceased licensed activities entirely by September 
30, 1993. All other licensees and approval holders who held a license 
or approval on October 1, 1993, would be subject to FY 1994 annual 
fees. This change is in recognition of the fact that since the final FY 
1993 rule was published in July 1993, licensees have continued to file 
requests for termination of their licenses or certificates with the 
NRC. Other licensees have either called or written to the NRC since the 
FY 1993 final rule became effective requesting further clarification 
and information concerning the annual fees assessed. The NRC is 
responding to these requests as quickly as possible. However, the NRC 
was unable to respond and take action on all of the requests before the 
end of the fiscal year on September 30, 1993. Similar situations 
existed after the FY 1991 and FY 1992 rules were published, and in 
those cases NRC provided an exemption from the requirement that the 
annual fee is waived only where a license is terminated before October 
1 of each fiscal year.
    Sixth, the NRC is proposing to amend Sec. 171.19 to credit the 
quarterly partial payments already made by certain licensees in FY 1994 
either toward their total annual fee to be assessed or to make refunds, 
if necessary.
    The proposed 10 CFR part 171 annual fees have been determined using 
the same method used to determine the FY 1991, FY 1992, and FY 1993 
annual fees. The amounts to be collected through annual fees in the 
amendments to 10 CFR part 171 are based on the increased professional 
hourly rate. The proposed amendments to 10 CFR part 171 do not change 
the underlying basis for 10 CFR part 171; that is, charging a class of 
licensees for NRC costs attributable to that class of licensees. The 
changes are consistent with the Congressional guidance in the 
Conference Committee Report on OBRA-90, which states that the 
``conferees contemplate that the NRC will continue to allocate generic 
costs that are attributable to a given class of licensee to such 
class'' and the ``conferees intend that the NRC assess the annual 
charge under the principle that licensees who require the greatest 
expenditures of the agency's resources should pay the greatest annual 
fee'' (136 Cong. Rec., at H12692-93).
    During the past three years, many licensees have indicated that 
although they held a valid NRC license authorizing the possession and 
use of special nuclear, source, or byproduct material, they were in 
fact either not using the material to conduct operations or had 
disposed of the material and no longer needed the license. In 
responding to licensees about this matter, the NRC has stated that 
annual fees are assessed based on whether a licensee holds a valid NRC 
license that authorizes possession and use of radioactive material. 
Whether or not a licensee is actually conducting operations using the 
material is a matter of licensee discretion. The NRC cannot control 
whether a licensee elects to possess and use radioactive material once 
it receives a license from the NRC. Therefore, the NRC reemphasizes 
once again that annual fees will be assessed based on whether a 
licensee holds a valid license with the NRC that authorizes possession 
and use of radioactive material. To remove any uncertainties regarding 
agency policy on this issue, the NRC amended 10 CFR 171.16, footnotes 1 
and 7 on July 20, 1993.

C. FY 1994 Budgeted Costs

    The FY 1994 budgeted costs, by major activity, to be recovered 
through 10 CFR parts 170 and 171 fees, are shown in Table I. 

          Table I.--Recovery of NRC's FY 1994 Budget Authority          
                          (Dollars in-millions)                         
------------------------------------------------------------------------
                                                               Estimated
                       Recovery method                          amount  
------------------------------------------------------------------------
Nuclear waste fund...........................................      $22.0
Part 170 (license and inspection fees).......................      116.2
Other receipts...............................................         .1
Part 171 (annual fees):                                                 
  Power reactors.............................................      306.0
  Nonpower reactors..........................................         .4
  Fuel facilities............................................       16.8
  Spent fuel storage.........................................        2.2
  Uranium recovery...........................................        2.1
  Transportation.............................................        4.0
  Material users.............................................    \1\38.6
                                                              ----------
      Subtotal part 171......................................      370.1
                                                              ==========
Costs remaining to be recovered not identified above.........      $26.6
                                                              ----------
      Total..................................................      535.0
------------------------------------------------------------------------
\1\Includes $6.3 million that will not be recovered from small materials
  licensees because of the reduced small entity fees.                   

    The NRC is proposing that the $26.6 million identified for those 
activities which are not identified as either 10 CFR Parts 170 or 171 
or the NWF in Table I be distributed among the classes of licensees as 
follows:
    $24.4 million to operating power reactors;
    $.7 million to fuel facilities; and
    $1.5 million to other materials licensees.
    In addition, approximately $6.3 million must be collected as a 
result of continuing the $1,800 maximum fee for small entities and the 
lower tier small entity fee of $400 for certain licensees. In order for 
the NRC to recover 100 percent of its FY 1994 budget authority in 
accordance with OBRA-90, the NRC is proposing to recover $5.3 million 
of the $6.3 million from operating power reactors and the remaining 
$1.0 million from other nonreactor entities that do not meet NRC small 
entity size standards.
    This distribution results in an additional charge (surcharge) of 
approximately $275,000 per operating power reactor; $55,600 for each 
HEU, LEU, UF6 and each other fuel facility license; $1,500 for 
each materials license in a category that generates a significant 
amount of low level waste; and $170 for other materials licenses. When 
added to the base annual fee of approximately $2.8 million per reactor, 
this will result in an annual fee of approximately $3.1 million per 
operating power reactor. The total fuel facility annual fee would be 
between approximately $1.2 million and $3.2 million. The total annual 
fee for materials licenses would vary depending on the fee 
category(ies) assigned to the license.
    The proposed additional charges not directly or solely attributable 
to a specific class of NRC licensees and costs not recovered from all 
NRC licensees on the basis of previous Commission policy decisions 
would be recovered from the designated classes of licensees previously 
identified. A further discussion and breakdown of the specific costs by 
major classes of licensees are shown in Section III of this proposed 
rule.

III. Section-by-Section Analysis

    The following analysis of those sections that are affected under 
this proposed rule provides additional explanatory information. All 
references are to Title 10, Chapter I, U.S. Code of Federal 
Regulations.

Part 170

Section 170.3  Definitions
    This section would be amended to revise the definition of special 
projects. This proposed change is based on our experience during the 
past three years in implementing the 100 percent fee recovery program 
and the fee policy review required by the Energy Policy Act of 1992. 
The NRC believes that the costs for some requests or reports being 
filed with NRC are more appropriately captured in the 10 CFR Part 171 
annual fees instead of assessing specific fees under 10 CFR Part 170. 
Therefore, it is proposed that the definition in Sec. 170.3, as well as 
the footnotes in Secs. 170.21 and 170.31, be revised to indicate that 
10 CFR Part 170 fees will not be assessed for requests/reports which 
have been submitted to the NRC:
    1. In response to a Generic Letter or NRC Bulletin that does not 
result in an amendment to the license, does not result in the review of 
an alternate method or reanalysis to meet the requirements of the 
Generic Letter, or does not involve an unreviewed safety issue;
    2. In response to an NRC request (at the Associate Office Director 
level or above) to resolve an identified safety or environmental issue, 
or to assist NRC in developing a rule, regulatory guide, policy 
statement, generic letter, or bulletin; or
    3. As a means of exchanging information between industry 
organizations and the NRC for the purpose of supporting generic 
regulatory improvements or efforts.
Section 170.20  Average Cost per Professional Staff Hour
    This section would be amended to reflect an agency-wide, 
professional staff-hour rate based on FY 1994 budgeted costs. 
Accordingly, the NRC professional staff-hour rate for FY 1994 for all 
fee categories that are based on full cost is $133 per hour, or 
$231,216 per direct FTE. The rate is based on the FY 1994 direct FTEs 
and NRC budgeted costs that are not recovered through the appropriation 
from the NWF. The rate is calculated using the identical method 
established for FY 1991, FY 1992, and FY 1993. The method is as 
follows:
    1. All direct FTEs are identified in Table II by major program. It 
is noted that for FY 1994 the NRC has traced additional direct effort 
to the reactor and materials programs for the Office of Investigations, 
the Office of Enforcement, the Advisory Committee on Reactor 
Safeguards, and the Advisory Committee on Nuclear Waste. The cost for 
these activities had previously been included in overhead, but are now 
being directly assigned to the class of licensees that they support. 

         Table II.--Allocation of Direct FTEs by Major Program          
------------------------------------------------------------------------
                                                                 Number 
                                                                   of   
                         Major program                           direct 
                                                                 FTEs\1\
------------------------------------------------------------------------
Reactor Safety & Safeguards Regulation........................   1,034.4
Reactor Safety Research.......................................     111.3
Nuclear Material & Low-Level Waste Safety & Safeguards                  
 Regulation...................................................     352.5
Reactor Special and Independent Reviews, Investigations, and            
 Enforcement..................................................     111.7
Nuclear Material Management and Support.......................      19.0
                                                               ---------
      Total direct FTE........................................  \2\1,628
                                                                      .9
------------------------------------------------------------------------
\1\FTE (full time equivalent) is one person working for a full year.    
  Regional employees are counted in the office of the program each      
  supports.                                                             
\2\In FY 1994, 1,628.9 FTEs of the total 3,223 FTEs are considered to be
  in direct support of NRC non-NWF programs. The remaining 1,594.1 FTEs 
  are considered overhead and general and administrative.               

    2. NRC FY 1994 budgeted costs are allocated, in Table III, to the 
following four major categories:
    (a) Salaries and benefits.
    (b) Administrative support.
    (c) Travel.
    (d) Program support.
    3. Direct program support, which is the use of contract or other 
services in support of the line organization's direct program, is 
excluded because these costs are charged directly through the various 
categories of fees.
    4. All other costs (i.e., Salaries and Benefits, Travel, 
Administrative Support, and Program Support contracts/services for G&A 
activities) represent ``in-house'' costs and are to be collected by 
allocating them uniformly over the total number of direct FTEs.
    Using this method, which was described in the final rules published 
July 10, 1991 (56 FR 31472), July 23, 1992 (57 FR 32691), and July 20, 
1993 (58 FR 38666), and excluding direct Program Support funds, 
allocating the remaining $376.6 million uniformly to the direct FTEs 
(1,628.9) results in a rate of $231,216 per FTE for FY 1994. The Direct 
FTE Hourly Rate is $133 per hour (rounded to the nearest whole dollar). 
This rate is calculated by dividing $376.6 million by the number of 
direct FTEs (1,628.9 FTE) and the number of productive hours in one 
year (1744 hours) as indicated in OMB Circular A-76, ``Performance of 
Commercial Activities.''

         Table III.--FY 1994 Budget Authority by Major Category         
                          [Dollars in millions]                         
Salaries and benefits.........................................    $259.5
Administrative support........................................      86.7
Travel........................................................      15.9
                                                               ---------
Total nonprogram support obligations..........................     362.1
                                                               =========
Program support...............................................     150.9
                                                               ---------
  Total Budget Authority......................................     513.0
                                                               =========
Less direct program support and offsetting receipts...........     136.4
                                                               ---------
Budget Allocated to Direct FTE................................     376.6
                                                               =========
Professional Hourly Rate......................................       133

    Section 170.21 Schedule of Fees for Production and Utilization 
Facilities, Review of Standard Reference Design Approvals, Special 
Projects, Inspections and Import and Export Licenses.
    The NRC is proposing to revise the licensing and inspection fees in 
this section, which are based on full-cost recovery, to reflect the FY 
1994 budgeted costs and to recover costs incurred by the NRC in 
providing licensing and inspection services to identifiable recipients. 
The fees assessed for services provided under the schedule are based on 
the professional hourly rate as shown in Sec. 170.20 and any direct 
program support (contractual services) costs expended by the NRC. Any 
professional hours expended on or after the effective date of this rule 
would be assessed at the FY 1994 rate shown in Sec. 170.20. The amount 
of the import and export licensing fees in Sec. 170.21, facility 
Category K, has not changed from FY 1993 as a result of the very small 
increase in the hourly rate from $132 per hour to $133 per hour. 
Although the amount of the fees did not change, they are being 
published for purposes of convenience.
    For those applications currently on file and pending completion, 
the NRC is proposing to revise footnote 2 of Sec. 170.21 to provide 
that the professional hours expended up to the effective date of this 
rule will be assessed at the professional rates established for the 
rules that became effective on June 20, 1984, January 30, 1989, July 2, 
1990, August 9, 1991, August 24, 1992, and August 19, 1993, as 
appropriate. For topical report applications currently on file which 
are still pending completion of the review and for which review costs 
have reached the applicable fee ceiling established by the July 2, 
1990, rule, the costs incurred after any applicable ceiling was reached 
through August 8, 1991, will not be billed to the applicant. Any 
professional hours expended for the review of topical report 
applications, amendments, revisions, or supplements to a topical report 
on or after August 9, 1991, are assessed at the applicable rate 
established by Sec. 170.20.
    Section 170.31 Schedule of Fees for Materials Licenses and Other 
Regulatory Services, Including Inspections and Import and Export 
Licenses.
    The licensing and inspection fees in this section would be modified 
to recover the FY 1994 costs incurred by the Commission in providing 
licensing and inspection services to identifiable recipients. Those 
flat fees, which are based on the average time to review an application 
or conduct an inspection, are adjusted to reflect the very small 
increase in the professional hourly rate from $132 per hour in FY 1993 
to $133 per hour in FY 1994. In many cases, the fees for FY 1994 are 
the same as those assessed in FY 1993.
    The amounts of the licensing and inspection flat fees were rounded 
by applying standard rules of arithmetic so that the amounts rounded 
would be de minimus and convenient to the user. Fees that are greater 
than $1,000 are rounded to the nearest $100. Fees under $1,000 are 
rounded to the nearest $10.
    The proposed fees are applicable to fee categories 1.C and 1.D; 2.B 
and 2.C; 3.A through 3.P; 4.B through 9.D, 10.B, 15A through 15E and 
16. The fees will be assessed for applications filed or inspections 
conducted on or after the effective date of this rule.
    The NRC is proposing to amend Category 16, reciprocity, to include 
a fee to recover the costs incurred by the NRC for the review of 
revisions to the information submitted on the NRC Form-241 filed by the 
10 CFR 150.20 general licensees during the remainder of the calendar 
year. Persons engaging in activities in a non-Agreement State under the 
reciprocity provision of Sec. 150.20 are required to file an NRC Form 
241 for the initial application in a calendar year. Revisions to the 
initial NRC Form 241 are filed for review and authorization in lieu of 
filing additional Forms 241 when persons using the 10 CFR 150.20 
general license either add locations of work, use different radioactive 
material or perform additional work activities in a non-Agreement 
State.
    For those licensing, inspection, and review fees assessed that are 
based on full-cost recovery (cost for professional staff hours plus any 
contractual services), the revised hourly rate of $133, as shown in 
Sec. 170.20, applies to those professional staff hours expended on or 
after the effective date of this rule.

Part 171

Section 171.11  Exemptions
    Paragraph (a)(2) of this section would be amended to exempt State-
owned reactors used primarily for educational training and research 
purposes from annual fees. The NRC believes that this proposed change 
is consistent with the legislative intent of the Energy Policy Act of 
1992 that government-owned research reactors be exempt from annual fees 
if they meet the technical design criteria of the exemption and are 
used primarily for educational training and research purposes. There is 
one research reactor, owned by the Rhode Island Atomic Energy 
Commission, that would be exempt under this proposed amendment to 
Sec. 171.11.
Section 171.15  Annual Fee: Reactor Operating Licenses
    The annual fees in this section would be revised to reflect FY 1994 
budgeted costs. Paragraphs (a), (b)(3), (c)(2), (d), and (e) would be 
revised to comply with the requirement of OBRA-90 to recover 
approximately 100 percent of the NRC budget for FY 1994. Table IV shows 
the budgeted costs that have been allocated to operating power 
reactors. They have been expressed in terms of the NRC's FY 1994 
programs and program elements. The resulting total base annual fee 
amount for power reactors is also shown.

   Table IV.--Allocation of NRC FY 1994 Budget to Power Reactors' Base  
                                 Fees\1\                                
------------------------------------------------------------------------
                        Program element total      Allocated to power   
                     --------------------------         reactors        
                                               -------------------------
                        Program                   Program               
                        support     Direct FTE    support     Direct FTE
                         ($,K)                     ($,K)                
------------------------------------------------------------------------
Reactor safety and                                                      
 safeguards                                                             
 regulation (RSSR):                                                     
    Standard reactor                                                    
     designs........       $9,531         96.3       $9,361         92.8
    Reactor license                                                     
     renewal........          600         33.9          600         33.9
    Reactor and site                                                    
     licensing......        1,810         34.7        1,810         29.8
    Resident                                                            
     inspections....  ...........        207.0  ...........        207.0
    Region-based                                                        
     inspections....        2,780        235.0        2,780        229.8
    Interns (HQ and                                                     
     regions).......  ...........         23.0  ...........         23.0
    Special                                                             
     inspections....          970         42.7          970         42.7
    License                                                             
     maintenance and                                                    
     safety                                                             
     evaluations....        4,142        208.5        4,142        208.5
    Plant                                                               
     performance....          927         52.1          927         52.1
    Human                                                               
     performance....        4,760         54.7        4,403         51.1
    Other safety                                                        
     reviews and                                                        
     assistance.....        3,443         46.5        3,213         38.8
                     ---------------------------------------------------
      RSSR program                                                      
       total........  ...........  ...........       28,206      1,009.5
Reactor safety                                                          
 research (RSR):                                                        
    Standard reactor                                                    
     designs........       16,676         29.3       16,676         29.3
    Reactor aging                                                       
     and license                                                        
     renewal........       23,273         13.7       22,573         13.6
    Plant                                                               
     performance....        3,173          4.2        3,173          4.2
    Human                                                               
     reliability....        4,428          7.0        4,428          7.0
    Reactor accident                                                    
     analysis.......       20,284         26.7       20,284         26.7
    Safety issue                                                        
     resolution and                                                     
     regulatory                                                         
     improvements...       10,240         30.4       10,240         30.4
                     ---------------------------------------------------
      RSR program                                                       
       total........  ...........  ...........       77,374        111.2
Nuclear material and                                                    
 low level (NMLL)                                                       
NMLL (NMSS):                                                            
    Fuel cycle                                                          
     safety and                                                         
     safeguards.....        4,783         85.8        1,494          2.8
    LLW licensing                                                       
     and inspection.          592         14.3  ...........          1.4
    Uranium recovery                                                    
     licensing and                                                      
     inspection.....          265         14.4           21            0
    Decommissioning.        2,215         30.8            9          6.7
NMLL (RES):                                                             
    Environmental                                                       
     policy and                                                         
     decommissioning        2,410          9.0          964          3.6
                     ---------------------------------------------------
      NMLL program                                                      
       total........  ...........  ...........        2,488         14.5
Reactor special and                                                     
 independent                                                            
 reviews,                                                               
 investigations, and                                                    
 enforcement                                                            
AEOD:                                                                   
    Diagnostic                                                          
     evaluations....          288          5.0          288          5.0
    Incident                                                            
     investigations.           26          1.0           26          1.0
    NRC incident                                                        
     response.......        1,854         26.0        1,854         24.0
    Operational                                                         
     experience                                                         
     evaluation.....        5,447         30.0        5,447         29.0
    Committee to                                                        
     review generic                                                     
     requirements...  ...........          2.0  ...........          2.0
                     ---------------------------------------------------
      AEOD subtotal.  ...........  ...........        7,615         61.0
    Advisory                                                            
     committee on                                                       
     reactor                                                            
     safeguards.....  ...........  ...........          181         20.5
    Office of                                                           
     investigations.  ...........  ...........  ...........         17.0
    Office of                                                           
     enforcement....  ...........  ...........           10          7.0
                     ---------------------------------------------------
      RSIRIE program                                                    
       total........  ...........  ...........        7,806        105.5
                     ---------------------------------------------------
      Total base fee                                                    
       amount                                                           
       allocated to                                                     
       power                                                            
       reactors.....  ...........  ...........        402.7  ...........
                                                 million\2\  ...........
    Less estimated                                                      
     part 170 power                                                     
     reactor fees...  ...........  ...........         96.7  ...........
                                                    million  ...........
                     ---------------------------------------------------
      Part 171 base                                                     
       fees for                                                         
       operating                                                        
       power                                                            
       reactors.....  ...........  ...........        306.0  ...........
                                                    million  ...........
------------------------------------------------------------------------
\1\Base annual fees include all costs attributable to the operating     
  power reactor class of licensees. The base fees do not include costs  
  allocated to power reactors for policy reasons.                       
\2\Amount is obtained by multiplying the direct FTE times the rate per  
  FTE and adding the program support funds.                             

      
    Based on the information in Table IV, the base annual fees to be 
assessed for FY 1994 are the amounts shown in Table V below for each 
nuclear power operating license.

                             Table V.--Base Annual Fees for Operating Power Reactors                            
----------------------------------------------------------------------------------------------------------------
                           Reactors                                     Containment type            Annual fee  
----------------------------------------------------------------------------------------------------------------
Westinghouse:                                                                                                   
    1. Beaver Valley 1.......................................  PWR large dry containment........      $2,841,000
    2. Beaver Valley 2.......................................  ......do.........................       2,841,000
    3. Braidwood 1...........................................  ......do.........................       2,841,000
    4. Braidwood 2...........................................  ......do.........................       2,841,000
    5. Byron 1...............................................  ......do.........................       2,841,000
    6. Byron 2...............................................  ......do.........................       2,841,000
    7. Callaway 1............................................  ......do.........................       2,841,000
    8. Comanche Peak 1.......................................  ......do.........................       2,841,000
    9. Comanche Peak 2.......................................  ......do.........................       2,841,000
    10. Diablo Canyon 1......................................  ......do.........................       2,839,000
    11. Diablo Canyon 2......................................  ......do.........................       2,839,000
    12. Farley 1.............................................  ......do.........................       2,841,000
    13. Farley 2.............................................  ......do.........................       2,841,000
    14. Ginna................................................  ......do.........................       2,841,000
    15. Haddam Neck..........................................  ......do.........................       2,841,000
    16. Harris 1.............................................  ......do.........................       2,841,000
    17. Indian Point 2.......................................  ......do.........................       2,841,000
    18. Indian Point 3.......................................  ......do.........................       2,841,000
    19. Kewaunee.............................................  ......do.........................       2,841,000
    20. Millstone 3..........................................  ......do.........................       2,841,000
    21. North Anna 1.........................................  ......do.........................       2,841,000
    22. North Anna 2.........................................  ......do.........................       2,841,000
    23. Point Beach 1........................................  ......do.........................       2,841,000
    24. Point Beach 2........................................  ......do.........................       2,841,000
    25. Prairie Island 1.....................................  ......do.........................       2,841,000
    26. Prairie Island 2.....................................  ......do.........................       2,841,000
    27. Robinson 2...........................................  ......do.........................       2,841,000
    28. Salem 1..............................................  ......do.........................       2,841,000
    29. Salem 2..............................................  ......do.........................       2,841,000
    30. Seabrook 1...........................................  ......do.........................       2,841,000
    31. South Texas 1........................................  ......do.........................       2,841,000
    32. South Texas 2........................................  ......do.........................       2,841,000
    33. Summer 1.............................................  ......do.........................       2,841,000
    34. Surry 1..............................................  ......do.........................       2,841,000
    35. Surry 2..............................................  ......do.........................       2,841,000
    36. Turkey Point 3.......................................  ......do.........................       2,841,000
    37. Turkey Point 4.......................................  ......do.........................       2,841,000
    38. Vogtle 1.............................................  ......do.........................       2,841,000
    39. Vogtle 2.............................................  ......do.........................       2,841,000
    40. Wolf Creek 1.........................................  ......do.........................       2,841,000
    41. Zion 1...............................................  ......do.........................       2,841,000
    42. Zion 2...............................................  ......do.........................       2,841,000
    43. Catawba 1............................................  PWR--Ice condenser...............       2,840,000
    44. Catawba 2............................................  ......do.........................       2,840,000
    45. Cook 1...............................................  ......do.........................       2,840,000
    46. Cook 2...............................................  ......do.........................       2,840,000
    47. McGuire 1............................................  ......do.........................       2,840,000
    48. McGuire 2............................................  ......do.........................       2,840,000
    49. Sequoyah 1...........................................  ......do.........................       2,840,000
    50. Sequoyah 2...........................................  ......do.........................       2,840,000
Combustion engineering:                                                                                         
    1. Arkansas 2............................................  PWR large dry containment........       2,840,000
    2. Calvert Cliffs 1......................................  ......do.........................       2,840,000
    3. Calvert Cliffs 2......................................  ......do.........................       2,840,000
    4. Ft. Calhoun 1.........................................  ......do.........................       2,840,000
    5. Maine Yankee..........................................  ......do.........................       2,840,000
    6. Millstone 2...........................................  ......do.........................       2,840,000
    7. Palisades.............................................  ......do.........................       2,840,000
    8. Palo Verde 1..........................................  ......do.........................       2,838,000
    9. Palo Verde 2..........................................  ......do.........................       2,838,000
    10. Palo Verde 3.........................................  ......do.........................       2,838,000
    11. San Onofre 2.........................................  ......do.........................       2,838,000
    12. San Onofre 3.........................................  ......do.........................       2,838,000
    13. St. Lucie 1..........................................  ......do.........................       2,840,000
    14. St. Lucie 2..........................................  ......do.........................       2,840,000
    15. Waterford 3..........................................  ......do.........................       2,840,000
Babcock & Wilcox:                                                                                               
    1. Arkansas 1............................................  ......do.........................       2,840,000
    2. Crystal River 3.......................................  ......do.........................       2,840,000
    3. Davis Besse 1.........................................  ......do.........................       2,840,000
    4. Oconee 1..............................................  ......do.........................       2,840,000
    5. Oconee 2..............................................  ......do.........................       2,840,000
    6. Oconee 3..............................................  ......do.........................       2,840,000
    7. Three Mile Island 1...................................  ......do.........................       2,840,000
General Electric:                                                                                               
    1. Browns Ferry 1........................................  Mark I...........................       2,821,000
    2. Browns Ferry 2........................................  ......do.........................       2,821,000
    3. Browns Ferry 3........................................  ......do.........................       2,821,000
    4. Brunswick 1...........................................  ......do.........................       2,821,000
    5. Brunswick 2...........................................  ......do.........................       2,821,000
    6. Clinton 1.............................................  Mark III.........................       2,821,000
    7. Cooper................................................  Mark I...........................       2,821,000
    8. Dresden 2.............................................  ......do.........................       2,821,000
    9. Dresden 3.............................................  ......do.........................       2,821,000
    10. Duane Arnold.........................................  ......do.........................       2,821,000
    11. Fermi 2..............................................  ......do.........................       2,821,000
    12. Fitzpatrick..........................................  ......do.........................       2,821,000
    13. Grand Gulf 1.........................................  Mark III.........................       2,821,000
    14. Hatch 1..............................................  Mark I...........................       2,821,000
    15. Hatch 2..............................................  ......do.........................       2,821,000
    16. Hope Creek 1.........................................  ......do.........................       2,821,000
    17. LaSalle 1............................................  Mark II..........................       2,821,000
    18. LaSalle 2............................................  ......do.........................       2,821,000
    19. Limerick 1...........................................  ......do.........................       2,821,000
    20. Limerick 2...........................................  ......do.........................       2,821,000
    21. Millstone 1..........................................  Mark I...........................       2,821,000
    22. Monticello...........................................  ......do.........................       2,821,000
    23. Nine Mile Point 1....................................  ......do.........................       2,821,000
    24. Nine Mile Point 2....................................  Mark II..........................       2,821,000
    25. Oyster Creek.........................................  Mark I...........................       2,821,000
    26. Peach Bottom 2.......................................  ......do.........................       2,821,000
    27. Peach Bottom 3.......................................  ......do.........................       2,821,000
    28. Perry 1..............................................  Mark III.........................       2,821,000
    29. Pilgrim..............................................  Mark I...........................       2,821,000
    30. Quad Cities 1........................................  ......do.........................       2,821,000
    31. Quad Cities 2........................................  ......do.........................       2,821,000
    32. River Bend 1.........................................  Mark III.........................       2,821,000
    33. Susquehanna 1........................................  Mark II..........................       2,821,000
    34. Susquehanna 2........................................  ......do.........................       2,821,000
    35. Vermont Yankee.......................................  Mark I...........................       2,821,000
    36. Washington Nuclear 2.................................  Mark II..........................       2,818,000
Other Reactor:                                                                                                  
    1. Big Rock Point........................................  GE dry containment...............       2,821,000
----------------------------------------------------------------------------------------------------------------

    The ``Other Reactor'' listed in Table V was not included in the fee 
base because historically Big Rock Point has been granted a partial 
exemption from the annual fees. The NRC proposes to grant a similar 
partial exemption in FY 1994 to Big Rock Point, a smaller older 
reactor, based on a request filed with the NRC in accordance with 
Sec. 171.11.
    Paragraph (b)(3) would be revised to change the fiscal year 
references from FY 1993 to FY 1994. Paragraph (c)(2) would be amended 
to show the amount of the surcharge for FY 1994. This surcharge is 
added to the base annual fee for each operating power reactor shown in 
Table V. The purpose of this surcharge is to recover those NRC budgeted 
costs that are not directly or solely attributable to operating power 
reactors but nevertheless must be recovered to comply with the 
requirements of OBRA-90. The NRC has continued its previous policy 
decision to recover these costs from operating power reactors.
    The FY 1994 budgeted costs related to the additional charge and the 
amount of the charge are calculated as follows:

------------------------------------------------------------------------
                                                                 FY 1994
                       Category of costs                        budgeted
                                                                  costs 
------------------------------------------------------------------------
1. Activities not attributable to an existing NRC licensee or           
 class of licensee:                                                     
  a. reviews for DOE/DOD reactor projects, and West Valley              
   Demonstration Project;                                           $2.4
  b. international cooperative safety program and                       
   international safeguards activities; and                          8.2
  c. low level waste disposal generic activities;.............       6.0
2. Activities not assessed Part 170 licensing and inspection            
 fees or Part 171 annual fees based on Commission policy:               
  a. Licensing and inspection activities associated with                
   nonprofit educational institutions; and                           7.8
  b. costs not recovered from Part 171 for small entities.....      5.3 
                                                               ---------
      Total budgeted costs....................................     $29.7
------------------------------------------------------------------------

    The annual additional charge is determined as follows:

TP10MY94.001

    On the basis of this calculation, an operating power reactor, 
Beaver Valley 1, for example, would pay a base annual fee of $2,841,000 
and an additional charge of $275,000 for a total annual fee of 
$3,116,000 for FY 1994.
    Paragraph (d) would be revised to show, in summary form, the amount 
of the total FY 1994 annual fee, including the surcharge, to be 
assessed for each major type of operating power reactor.
    Paragraph (e) would be revised to show the amount of the FY 1994 
annual fee for nonpower (test and research) reactors. In FY 1994, 
$373,000 in costs are attributable to those commercial and non-exempt 
Federal government organizations that are licensed to operate test and 
research reactors. Applying these costs uniformly to those nonpower 
reactors subject to fees results in an annual fee of $62,200 per 
operating license. The Energy Policy Act establishes an exemption for 
certain Federally-owned research reactors that are used primarily for 
educational training and academic research purposes where the design of 
the reactor satisfies certain technical specifications set forth in the 
legislation. Consistent with this legislative requirement, the NRC 
granted an exemption from annual fees for FY 1992 and FY 1993 to the 
Veterans Administration Medical Center in Omaha, Nebraska, the U.S. 
Geological Survey for its reactor in Denver, Colorado, and the Armed 
Forces Radiobiological Institute in Bethesda, Maryland for its research 
reactor. This exemption was initially codified in the July 20, 1993 (58 
FR 38695), final fee rule at Sec. 171.11(a) and more recently in the 
March 17, 1994 (59 FR 12543) final rule at Sec. 171.11(a)(2). The NRC 
intends to continue to grant exemptions from the annual fee to those 
Federally owned reactors who meet the exemption criteria as specified 
in Sec. 171.11. The NRC is proposing to amend Sec. 171.11(a)(2) to 
exempt from annual fees the research reactor owned by the Rhode Island 
Atomic Energy Commission.
Section 171.16  Annual Fees
    Materials Licensees, Holders of Certificates of Compliance, Holders 
of Sealed Source and Device Registrations, Holders of Quality Assurance 
Program Approvals, and Government agencies licensed by the NRC.
    Sec. 171.16(c) covers the fees assessed for those licensees that 
can qualify as small entities under NRC size standards. Currently, the 
NRC assesses two fees for licensees that qualify as small entities 
under the NRC's size standards. In general, licensees with gross annual 
receipts of $250,000 to $3.5 million pay a maximum annual fee of 
$1,800. A second or lower-tier small entity fee of $400 is in place for 
small entities with gross annual receipts of less than $250,000 and 
small governmental jurisdictions with a population of less than 20,000.
    Paragraph (d) would be revised to reflect the FY 1994 budgeted 
costs for materials licensees, including Government agencies, licensed 
by the NRC. These fees are necessary to recover the FY 1994 generic 
costs totalling $63.7 million that apply to fuel facilities, uranium 
recovery facilities, spent fuel facilities, holders of transportation 
certificates and QA program approvals, and other materials licensees, 
including holders of sealed source and device registrations.
    Fee Category 18 would be amended to assess fees to the Department 
of Energy (DOE) for use of the general license provided under 10 CFR 
40.27. Currently, DOE is billed for the issuance of transportation 
Certificates of Compliance. The general license fulfills a requirement 
of the Uranium Mill Tailings Radiation Control Act of 1978 (UMTRCA) 
(Pub. L. 95-604) that the perpetual custodian of reclaimed uranium mill 
tailings piles be licensed by the NRC. The Sec. 40.27 general license 
covers only post-reclamation closure custody and site surveillance. In 
September 1993, DOE became a general licensee of the NRC because post-
reclamation closure of the Spook, Wyoming site had been achieved. 
Because DOE now holds an NRC license, it is subject to annual fees. The 
NRC had previously indicated its intent in the FY 1991 final fee rule 
to bill DOE for UMTRCA costs once post-closure was achieved and the 
sites were licensed by the Government (56 FR 31481, July 10, 1991). As 
a result, DOE would be billed for the costs associated with NRC's 
UMTRCA review of all activities associated with the facilities assigned 
to DOE under UMTRCA. As with other licensees, the annual fee for this 
class of licensees (DOE UMTRCA facilities) will recover the generic and 
other regulatory costs not recovered through 10 CFR part 170 fees. 
Because DOE, as a Federal agency, cannot be assessed Part 170 fees 
under the IOAA, the NRC proposes to assess annual fees for the total 
costs of DOE UMTRCA activities to DOE.
    Tables VI and VII show the NRC program elements and resources that 
are attributable to fuel facilities and materials users, respectively. 
The costs attributable to the uranium recovery class of licensees are 
those associated with uranium recovery licensing and inspection. For 
transportation, the costs are those budgeted for transportation 
research, licensing, and inspection. Similarly, the budgeted costs for 
spent fuel storage are those for spent fuel storage research, 
licensing, and inspection.

    Table VI.--Allocation of NRC FY 1994 Budget to Fuel Facility Base   
                                Fees\1\                                 
------------------------------------------------------------------------
                        Total program element       Allocated to fuel   
                     --------------------------         facility        
                                               -------------------------
                        Program        FTE        Program               
                      support $,K               support $,K      FTE    
------------------------------------------------------------------------
NMLL (research):                                                        
    Radiation                                                           
     protection/heal                                                    
     th effects.....       $1,575          5.3          315          1.1
    Environmental                                                       
     policy and                                                         
     Decommissioning        2,410          9.0          241          .9 
                                  --------------------------------------
      NMLL (RES)                                                        
       program total  ...........  ...........          556         2.0 
                                  ======================================
NMLL (NMSS)                                                             
    Fuel cycle                                                          
     safety and                                                         
     safeguards.....        4,783         85.8        2,432         57.1
    Event evaluation            0         14.9            0          4.2
    Decommissioning.        2,215         30.8          309         10.5
    Uranium recovery                                                    
     (DAM SAFETY)...          250          7.6            3            0
                                  --------------------------------------
      NMLL (NMSS)                                                       
       program total  ...........  ...........        2,744         71.8
                                  ======================================
    NMLL (MSIRIE)...                                                    
    Incident                                                            
     response.......  ...........  ...........            0          1.0
    Enforcement.....  ...........  ...........            0          1.2
                                  --------------------------------------
      NMLL MSIRIE                                                       
       program total  ...........  ...........            0          2.2
                     ---------------------------------------------------
        Total NMLL..  ...........  ...........        3,300         76.0
                                  --------------------------------------
      Total base fee                                                    
       amount                                                           
       allocated to                                                     
       fuel                                                             
       facilities...  ...........  ...........        $20.8             
                                                 \2\million             
      Less part 170                                                     
       fuel facility                                                    
       fees.........  ...........  ...........          4.0             
                                                   million              
                                               -------------            
Part 171 base fees                                                      
 for fuel facilities  ...........  ...........         16.8             
                                                   million              
------------------------------------------------------------------------
\1\Base annual fee includes all costs attributable to the fuel facility 
  class of licensees. The base fee does not include costs allocated to  
  fuel facilities for policy reasons.                                   
\2\Amount is obtained by multiplying the direct FTE times the rate per  
  FTE and adding the program support funds.                             


Table VII.--Allocation of FY 1994 Budget to Material Users' Base Fees\1\
------------------------------------------------------------------------
                               Total             Allocated to materials 
                     --------------------------          users          
                                               -------------------------
                        Program                   Program               
                      support $,K      FTE      support $,K      FTE    
                                                                        
------------------------------------------------------------------------
NMLL (Research):                                                        
    Materials                                                           
     licensee                                                           
     performance....         $450          1.2         $405          1.1
    Materials                                                           
     regulatory                                                         
     standards......        1,495         12.2        1,346         11.0
    Radiation                                                           
     protection/heal                                                    
     th effects.....        1,575          5.3        1,134          3.8
    Environmental                                                       
     policy and                                                         
     decommissioning        2,410          9.0        1,085          4.1
                                  --------------------------------------
      Total NMLL                                                        
       (RES)........  ...........  ...........        3,970         20.0
                                  ======================================
NMLL (NMSS):                                                            
    Licensing/inspec                                                    
     tion of                                                            
     materials users         $965        109.3          869         99.5
    Event Evaluation  ...........         16.2  ...........         11.4
    Information                                                         
     technology--NMS                                                    
     S..............        1,100  ...........           89  ...........
    Decommissioning.        2,215         30.8        1,707         12.0
    Low level waste--                                                   
     on site                                                            
     disposal.......          592         14.3           71         2.3 
                                  --------------------------------------
      Total NMLL                                                        
       (NMSS).......  ...........  ...........        2,736        125.2
                                  ======================================
NMLL (MSIRIE):                                                          
    Analysis and                                                        
     evaluation of                                                      
     operational                                                        
     data...........         $186          6.0          167          4.5
    Office of                                                           
     Investigations.  ...........          7.0  ...........          6.3
    Office of                                                           
     Enforcement....           10          6.8            9          5.0
                                  --------------------------------------
      Total NMLL                                                        
       program......  ...........  ...........       $6,882       161.0 
                                  ======================================
    Base amount                                                         
     allocated to                                                       
     materials users                                                    
     ($,M)..........  ...........  ...........         44.1             
                      ...........  ...........   \2\million             
    Less part 170                                                       
     material users                                                     
     fees...........                                    5.5             
                                                    million             
    Part 171 base                                                       
     fees for                                                           
     material users.                                   38.6             
                                                    million             
------------------------------------------------------------------------
\1\Base annual fee includes all costs attributable to the materials     
  class of licensees. The base fee does not include costs allocated to  
  materials licensees for policy reasons.                               
\2\Amount is obtained by multiplying the direct FTE times the rate per  
  FTE and adding the program support funds.                             

    The allocation of the NRC's $16.8 million in budgeted costs to the 
individual fuel facilities is based, as in FY 1991, FY 1992, and FY 
1993, primarily on the OBRA-90 conferees' guidance that licensees who 
require the greatest expenditure of NRC resources should pay the 
greatest annual fee. Because the two high-enriched fuel manufacturing 
facilities possess strategic quantities of nuclear materials, more NRC 
safeguards costs (e.g., physical security) are attributable to these 
facilities. Likewise, more of the safety licensing and inspection costs 
are allocated to the HEU facilities because more of these resources are 
used for HEU facilities as compared to other facilities. However, 
safety program assessment and safety event evaluation costs for fuel 
facilities are uniformly allocated to HEU and LEU facilities because 
these activities apply equally to each of the HEU and LEU facilities.
    Using this approach, the base annual fee for each facility is shown 
below. 

                               Annual Fee                               
------------------------------------------------------------------------
                                                             Safeguards 
                                                             and safety 
------------------------------------------------------------------------
High enriched fuel:                                                     
  Nuclear fuel services...................................    $3,176,000
  Babcock and Wilcox......................................    3,176,000 
                                                           -------------
    Subtotal..............................................     6,352,000
                                                           =============
Low Enriched Fuel:                                                      
  Siemens Nuclear Power...................................     1,429,000
  Babcock and Wilcox......................................     1,429,000
  General Electric........................................     1,429,000
  Westinghouse............................................     1,429,000
  Combustion Engineering (Hematite).......................     1,429,000
  General Atomic..........................................    1,429,000 
                                                           -------------
      Subtotal............................................     8,574,000
                                                           =============
UF6 Conversion                                                          
  Allied Signal Corp......................................     1,114,000
  Other fuel facilities (3 facilities at $254,000 each)...       762,000
                                                           -------------
      Total...............................................   16,802,000 
------------------------------------------------------------------------

    One of Combustion Engineering's (CE) low enriched uranium fuel 
facilities has not been included in the fee base because of the D.C. 
Circuit Court of Appeals decision of March 16, 1993, directing the NRC 
to grant an exemption for FY 1991 to Combustion Engineering for one of 
its two facilities. As a result of the Court's decision, the NRC 
proposes to grant an exemption to one of CE's low enriched uranium fuel 
facilities for FY 1994. The NRC will therefore exclude this facility 
from the calculation of the FY 1994 annual fees for the low enriched 
fuel category.
    Of the $2.1 million attributable to the uranium recovery class of 
licensees, about $1.5 million will be assessed to the Department of 
Energy (DOE) to recover the costs associated with DOE facilities under 
the Uranium Mill Tailings Radiation Control Act of 1978 (UMTRCA). These 
costs were previously recovered from operating power reactors because 
DOE was not an NRC licensee prior to September 1993 and therefore could 
not be billed under Part 171. In September 1993, DOE became a general 
licensee of the NRC because post-reclamation closure of the Spook 
Wyoming site had been achieved. It is estimated that approximately 44 
percent of the remaining costs of $639,000 for uranium recovery is 
attributable to uranium mills (Class I facilities). Approximately 39 
percent of the $639,000 for uranium recovery is attributable to those 
solution mining licensees who do not generate uranium mill tailings 
(Class II facilities). The remaining 17 percent is allocated to the 
other uranium recovery facilities (e.g. extraction of metals and rare 
earths). The resulting annual fees for each class of licensee are:
Class I facilities--$94,300
Class II facilities--$41,200
Other facilities-- $36,200
    The annual fees for FY 1994 for the uranium recovery class of 
licensees are about 40 percent less than the FY 1992 fees and are about 
60 percent higher than the FY 1993 annual fees. The total amount of 
fees that must be recovered from the uranium recovery class has 
decreased by about 10 percent compared to FY 1993; however, the annual 
fee per facility has increased for two basic reasons. First the amount 
that is expected to be recovered through Part 170 fees has decreased as 
a result of completing the licensing of the Envirocare 11.e(2) 
byproduct disposal facility. This requires relatively more costs to be 
recovered through annual fees. The second cause of the increases is a 
decrease in the number of licensees in the class to be assessed annual 
fees for FY 1994.
    For spent fuel storage licenses, the generic costs of $2.2 million 
have been spread uniformly among those licensees who hold specific or 
general licenses for receipt and storage of spent fuel at an ISFSI. 
This results in an annual fee of $363,500.
    To equitably and fairly allocate the $38.6 million attributable to 
the approximately 6,500 diverse material users and registrants, the NRC 
has continued to base the annual fee on the Part 170 application and 
inspection fees. Because the application and inspection fees are 
indicative of the complexity of the license, this approach continues to 
provide a proxy for allocating the costs to the diverse categories of 
licensees based on how much it costs NRC to regulate each category. The 
fee calculation also continues to consider the inspection frequency. 
Inspection frequency is indicative of the safety risk and resulting 
regulatory costs associated with the categories of licensees. In 
summary, the annual fee for these categories of licenses is developed 
as follows:
Annual Fee=(Application Fee+Inspection Fee/Inspection 
Priority) x Constant+ (Unique Category Costs).
    The constant is the multiple necessary to recover $38.6 million and 
is 2.6 for FY 1994. The unique costs are any special costs that the NRC 
has budgeted for a specific category of licensees. For FY 1994, unique 
costs of approximately $2.6 million were identified for the medical 
improvement program which is attributable to medical licensees. 
Materials annual fees for FY 1994 are 13-17% higher compared to the FY 
1993 annual fees. There are two basic reasons for the changes in the 
fees from FY 1993. First, the FY 1994 budgeted amount attributable to 
materials licensees is about 10 percent higher than the comparable FY 
1993 amount. Second, the number of licensees to be assessed annual fees 
in FY 1994 has decreased (from about 6,800 to about 6,500 resulting in 
a 4% increase in fees). The materials fees must be established at the 
proposed levels in order to comply with the mandate of OBRA-90 to 
recover approximately 100 percent of the NRC's FY 1994 budget 
authority. A materials licensee may pay a reduced annual fee if the 
licensee qualifies as a small entity under the NRC's size standards and 
certifies that it is a small entity using NRC Form 526.
    To recover the $4.0 million attributable to the transportation 
class of licensees, about $923,000 would be assessed to the Department 
of Energy (DOE) to cover all of its transportation casks under Category 
18. The remaining transportation costs for generic activities ($3.1 
million) are allocated to holders of approved QA plans. The annual fee 
for approved QA plans is $64,700 for users and fabricators and $900 for 
users only.
    The amount or range of the FY 1994 base annual fees for all 
materials licensees is summarized as follows: 

                Materials Licenses Base Annual Fee Ranges               
------------------------------------------------------------------------
        Category of license                      Annual fees            
------------------------------------------------------------------------
Part 70--High enriched fuel........  $3.2 million.                      
Part 70--Low enriched fuel.........  $1.4 million.                      
Part 40--UF6 conversion............  $1.1 million.                      
Part 40--Uranium recovery..........  $36,200 to $94,300.                
Part 30--Byproduct material........  \1\$970 to $30,900.                
Part 71--Transportation of           $900 to $64,700.                   
 radioactive material.                                                  
Part 72--Independent storage of      $363,500.                          
 spent nuclear fuel.                                                    
------------------------------------------------------------------------
\1\Excludes the annual fee for a few military ``master'' materials      
  licenses of broad-scope issued to Government agencies, which is       
  $430,500.                                                             

    Paragraph (e) would be amended to establish the additional charge 
which is to be added to the base annual fees shown in paragraph (d) of 
this final rule. The Commission is continuing the approach used in FY 
1993 so as to assess the budgeted LLW costs to two broad categories of 
licensees (large LLW generators and small LLW generators) based on 
historical disposal data. This surcharge continues to be shown, for 
convenience, with the applicable categories in paragraph (d). Although 
these NRC LLW disposal regulatory activities are not directly 
attributable to regulation of NRC materials licensees, the costs 
nevertheless must be recovered in order to comply with the requirements 
of OBRA-90. For FY 1994, the additional charge recovers approximately 
18 percent of the NRC budgeted costs of $8.1 million relating to LLW 
disposal generic activities from small generators, which are comprised 
of materials licensees that dispose of LLW. The percentage distribution 
reflects the deletion of LLW disposed by Agreement State licensees. The 
FY 1994 budgeted costs related to the additional charge for LLW and the 
amount of the charge are calculated as follows: 

------------------------------------------------------------------------
                                                                FY 1994 
                                                               budgeted 
                      Category of costs                          costs  
                                                              (millions)
------------------------------------------------------------------------
1. Activities not attributable to an existing NRC licensee              
 or class of licensee, i.e., LLW disposal generic activities       $8.1 
------------------------------------------------------------------------

    Of the $8.1 million in budgeted costs shown above for LLW 
activities, 82 percent of the amount ($6.7 million) are allocated to 
the 120 large waste generators (reactors and fuel facilities) included 
in 10 CFR Part 171. This results in an additional charge of $55,600 per 
facility. Thus, the LLW charge will be $55,600 per HEU, LEU, UF6 
facility, and each of the other 3 fuel facilities. The remaining $1.4 
million is allocated to the material licensees in categories that 
generate low level waste (965 licensees) as follows: $1,500 per 
materials license except for those in Category 17. Those licensees that 
generate a significant amount of low level waste for purposes of the 
calculation of the $1,500 surcharge are in fee Categories 1.B, 1.D, 
2.C, 3.A, 3.B, 3.C, 3.L, 3.M, 3.N, 4.A, 4.B, 4.C, 4.D, 5.B, 6.A, and 
7.B. The surcharge for licenses in fee Category 17, which also generate 
and/or dispose of low level waste, is $22,800.
    Of the $6.3 million not recovered from small entities, $1.0 million 
would be allocated to fuel facilities and other materials licensees. 
This results in a surcharge of $170 per category for each fuel facility 
and materials licensee that is not eligible for the small entity fee.
    On the basis of this calculation, a fuel facility (a high enriched 
fuel fabrication licensee, for example) would pay a base annual fee of 
$3,176,000 and an additional charge of $55,770 for LLW activities and 
small entity costs. A medical center with a broad-scope program would 
pay a base annual fee of $30,900 and an additional charge of $1,670, 
for a total FY 1994 annual fee of $32,570.
Section 171.17  Proration
    10 CFR 171.17 would be amended to add a proration provision for 
materials licenses and to revise the provision for reactors. The annual 
fee for materials licenses would be prorated based on applications 
filed after October 1 of the fiscal year either to reduce the scope of 
a license or to terminate a license. Those materials licensees who file 
applications between October 1 and March 31 of the fiscal year to 
downgrade the license or terminate the license would pay one-half the 
annual fee stated in Sec. 171.16(d) for the affected fee category(ies). 
Those materials licensees filing applications to downgrade or terminate 
a license on or after April 1 of the fiscal year would pay the full 
annual fee. Those licensees who file for termination or downgrade must 
also permanently cease operations of those licensed activities during 
the periods mentioned for the fee to be reduced. Similarly, materials 
licensees who were issued new licenses or licenses of increased scope 
during the fiscal year would also be charged a prorated annual fee 
based on the date of issuance of the new license or license amendment 
increasing the scope. New materials licenses issued during the period 
October 1 through March 31 would be assessed one-half of the FY 1994 
annual fee stated in Sec. 171.16(d) for the applicable fee categories. 
New licenses issued on or after April 1 would not be assessed the FY 
1994 annual fee. Materials licenses amended during the period October 1 
through March 31 to increase the scope would be assessed one-half the 
annual fee for the new fee category(ies). Materials licenses amended on 
or after April 1 to increase the scope would not be assessed the annual 
fee for the new fee category(ies).
    The NRC proposes to amend the proration provision in Sec. 171.17 
applicable to reactors to provide that for licensees who have requested 
a license amendment to withdraw operating authority permanently during 
the FY the annual fee will be prorated based on the number of days 
during the FY the operating license was in effect before the 
possession-only license was issued or the license was terminated.
    Footnote 1 of 10 CFR 171.16(d) would be amended to provide for a 
waiver of the annual fees for those licensees, and holders of 
certificates, registrations, and approvals who either filed for 
termination of their licenses or approvals or filed for possession 
only/storage only licenses before October 1, 1993, and permanently 
cease licensed activities entirely by September 30, 1993. All other 
licensees and approval holders who held a license or approval on 
October 1, 1993 would be subject to the FY 1994 annual fees.
Section 171.19  Payment
    This section would be revised to give credit for partial payments 
made by certain licensees in FY 1994 toward their FY 1994 annual fees. 
The NRC anticipates that the first, second, and third quarterly 
payments for FY 1994 will have been made by operating power reactor 
licensees and some materials licensees before the final rule is 
effective. Therefore, NRC will credit payments received for those three 
quarters toward the total annual fee to be assessed. The NRC will 
adjust the fourth quarterly bill in order to recover the full amount of 
the revised annual fee or to make refunds, as necessary. As in FY 1993, 
payment of the annual fee is due on the effective date of the rule and 
interest accrues from the effective date of the rule. However, interest 
will be waived if payment is received within 30 days from the effective 
date of the rule.
    During the past three years many licensees have indicated that 
although they held a valid NRC license authorizing the possession and 
use of special nuclear, source, or byproduct material, they were in 
fact either not using the material to conduct operations or had 
disposed of the material and no longer needed the license. In 
responding to licensees about this matter, the NRC has stated that 
annual fees are assessed based on whether a licensee holds a valid NRC 
license that authorizes possession and use of radioactive material. 
Whether or not a licensee is actually conducting operations using the 
material is a matter of licensee discretion. The NRC cannot control 
whether a licensee elects to possess and use radioactive material once 
it receives a license from the NRC. Therefore, the NRC reemphasizes 
that the annual fee will be assessed based on whether a licensee holds 
a valid NRC license that authorizes possession and use of radioactive 
material. To remove any uncertainty, the NRC issued minor clarifying 
amendments to 10 CFR 171.16, footnotes 1 and 7 on July 20, 1993 (58 FR 
38700).

IV. Environmental Impact: Categorical Exclusion

    The NRC has determined that this proposed rule is the type of 
action described in categorical exclusion 10 CFR 51.22(c)(1). 
Therefore, neither an environmental impact statement nor an 
environmental impact assessment has been prepared for the proposed 
regulation.

V. Paperwork Reduction Act Statement

    This proposed rule contains no information collection requirements 
and, therefore, is not subject to the requirements of the Paperwork 
Reduction Act of 1980 (44 U.S.C. 3501 et seq.).

VI. Regulatory Analysis

    With respect to 10 CFR Part 170, this proposed rule was developed 
pursuant to Title V of the Independent Offices Appropriation Act of 
1952 (IOAA) (31 U.S.C. 9701) and the Commission's fee guidelines. When 
developing these guidelines the Commission took into account guidance 
provided by the U.S. Supreme Court on March 4, 1974, in its decision of 
National Cable Television Association, Inc. v. United States, 415 U.S. 
36 (1974) and Federal Power Commission v. New England Power Company, 
415 U.S. 345 (1974). In these decisions, the Court held that the IOAA 
authorizes an agency to charge fees for special benefits rendered to 
identifiable persons measured by the ``value to the recipient'' of the 
agency service. The meaning of the IOAA was further clarified on 
December 16, 1976, by four decisions of the U.S. Court of Appeals for 
the District of Columbia, National Cable Television Association v. 
Federal Communications Commission, 554 F.2d 1094 (D.C. Cir. 1976); 
National Association of Broadcasters v. Federal Communications 
Commission, 554 F.2d 1118 (D.C. Cir. 1976); Electronic Industries 
Association v. Federal Communications Commission, 554 F.2d 1109 (D.C. 
Cir. 1976) and Capital Cities Communication, Inc. v. Federal 
Communications Commission, 554 F.2d 1135 (D.C. Cir. 1976). These 
decisions of the Courts enabled the Commission to develop fee 
guidelines that are still used for cost recovery and fee development 
purposes.
    The Commission's fee guidelines were upheld on August 24, 1979, by 
the U.S. Court of Appeals for the Fifth Circuit in Mississippi Power 
and Light Co. v. U.S. Nuclear Regulatory Commission, 601 F.2d 223 (5th 
Cir. 1979), cert. denied, 444 U.S. 1102 (1980). The Court held that--
    (1) The NRC had the authority to recover the full cost of providing 
services to identifiable beneficiaries;
    (2) The NRC could properly assess a fee for the costs of providing 
routine inspections necessary to ensure a licensee's compliance with 
the Atomic Energy Act and with applicable regulations;
    (3) The NRC could charge for costs incurred in conducting 
environmental reviews required by NEPA;
    (4) The NRC properly included the costs of uncontested hearings and 
of administrative and technical support services in the fee schedule;
    (5) The NRC could assess a fee for renewing a license to operate a 
low-level radioactive waste burial site; and
    (6) The NRC's fees were not arbitrary or capricious.
    With respect to 10 CFR Part 171, on November 5, 1990, the Congress 
passed Public Law 101-508, the Omnibus Budget Reconciliation Act of 
1990 (OBRA-90) which required that for FYs 1991 through 1995, 
approximately 100 percent of the NRC budget authority be recovered 
through the assessment of fees. OBRA-90 was amended in 1993 to extend 
the 100 percent fee recovery requirement for NRC through 1998. To 
accomplish this statutory requirement, the NRC, in accordance with 
Sec. 171.13, is publishing the proposed amount of the FY 1994 annual 
fees for operating reactor licensees, fuel cycle licensees, materials 
licensees, and holders of Certificates of Compliance, registrations of 
sealed source and devices and QA program approvals, and Government 
agencies. OBRA-90 and the Conference Committee Report specifically 
state that--
    (1) The annual fees be based on the Commission's FY 1994 budget of 
$535.0 million less the amounts collected from Part 170 fees and the 
funds directly appropriated from the NWF to cover the NRC's high level 
waste program;
    (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.
    Therefore, when developing the annual fees for operating power 
reactors the NRC continued to consider the various reactor vendors, the 
types of containment, and the location of the operating power reactors. 
The annual fees for fuel cycle licensees, materials licensees, and 
holders of certificates, registrations and approvals and for licenses 
issued to Government agencies take into account the type of facility or 
approval and the classes of the licensees.
    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).
    10 CFR Parts 170 and 171, which established fees based on the FY 
1989 budget, were also legally challenged. As a result of the Supreme 
Court decision in Skinner v. Mid-American Pipeline Co., 109 S. Ct. 1726 
(1989), and the denial of certiorari in Florida Power and Light, all of 
the lawsuits were withdrawn.
    The NRC's FY 1991 annual fee rule was largely upheld by the D.C. 
Circuit Court of Appeals in Allied Signal v. NRC, 988 F.2d 146 (D.C. 
Cir. 1993).

VII. Regulatory Flexibility Analysis

    The NRC is required by the Omnibus Budget Reconciliation Act of 
1990 to recover approximately 100 percent of its budget authority 
through the assessment of user fees. OBRA-90 further requires that the 
NRC establish a schedule of charges that fairly and equitably allocates 
the aggregate amount of these charges among licensees.
    This proposed rule establishes the schedules of fees that are 
necessary to implement the Congressional mandate for FY 1994. The 
proposed rule results in an increase in the fees charged to most 
licensees, and holders of certificates, registrations, and approvals, 
including those licensees who are classified as small entities under 
the Regulatory Flexibility Act. The Regulatory Flexibility Analysis, 
prepared in accordance with 5 U.S.C. 604, is included as Appendix A to 
this proposed rule.

VIII. Backfit Analysis

    The NRC has determined that the backfit rule, 10 CFR 50.109, does 
not apply to this proposed rule and that a backfit analysis is not 
required for this proposed rule. The backfit analysis is not required 
because these proposed amendments do not require the modification of or 
additions to systems, structures, components, or 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.

    For the reasons set out in the preamble and under the authority of 
the Atomic Energy Act of 1954, as amended, and 5 U.S.C. 553, the NRC is 
proposing to adopt the following amendments to 10 CFR parts 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: 31 U.S.C. 9701, 96 Stat. 1051; sec. 301, Pub. L. 92-
314, 86 Stat. 222 (42 U.S.C. 2201w); sec. 201, 88 Stat. 1242, as 
amended (42 U.S.C. 5841); sec. 205, Pub. L. 101-576, 104 Stat. 2842, 
(31 U.S.C. 902).

    2. In Sec. 170.3, the definition special projects is revised to 
read as follows:


Sec. 170.3  Definitions.

* * * * *
    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 
and other report reviews, early site reviews, waste solidification 
facilities, route approvals for shipment of radioactive materials, and 
services provided to certify licensee, vendor, or other private 
industry personnel as instructors for part 55 reactor operators. As 
used in this part, special projects does not include requests/reports 
submitted to the NRC:
    (1) In response to a Generic Letter or NRC Bulletin which does not 
result in an amendment to the license, does not result in the review of 
an alternate method or reanalysis to meet the requirements of the 
Generic Letter or does not involve an unreviewed safety issue;
    (2) In response to an NRC request (at the Associate Office Director 
level or above) to resolve an identified safety or environmental issue, 
or to assist NRC in developing a rule, regulatory guide, policy 
statement, generic letter, or bulletin; or
    (3) As a means of exchanging information between industry 
organizations and the NRC for the purpose of supporting generic 
regulatory improvements or efforts.
* * * * *
    3. Section 170.20 is revised to read as follows:


Sec. 170.20  Average cost per professional staff-hour.

    Fees for permits, licenses, amendments, renewals, special projects, 
part 55 requalification and replacement examinations and tests, other 
required reviews, approvals, and inspections under Secs. 170.21 and 
170.31 that are based upon the full costs for the review or inspection 
will be calculated using a professional staff-hour rate equivalent to 
the sum of the average cost to the agency for a professional staff 
member, including salary and benefits, administrative support, travel, 
and certain program support. The professional staff-hour rate for the 
NRC based on the FY 1994 budget is $133 per hour.
    4. In Sec. 170.21, the introductory paragraph, Category J, Category 
K, and footnotes 1 and 2 to the table are revised and a new footnote 4 
is added to read as follows:


Sec. 170.21  Schedule of fees for production and utilization 
facilities, review of standard referenced design approvals, special 
projects, inspections and import and export licenses.

    Applicants for construction permits, manufacturing licenses, 
operating licenses, import and export licenses, approvals of facility 
standard reference designs, requalification and replacement 
examinations for reactor operators, and special projects and holders of 
construction permits, licenses, and other approvals shall pay fees for 
the following categories of services.

                        Schedule of Facility Fees                       
                     [See footnotes at end of table]                    
------------------------------------------------------------------------
   Facility categories and type of fees              Fees\1\ \2\        
------------------------------------------------------------------------
                                                                        
                              * * * * * * *                             
J. Special Projects:\4\                                                 
    Approvals and preapplication/licensing  Full cost                   
     activities..                                                       
    Inspections...........................  Full Cost.                  
K. Import and export licenses:                                          
    Licenses for the import and export                                  
     only of production and utilization                                 
     facilities or the import and export                                
     only of components for production and                              
     utilization facilities issued                                      
     pursuant to 10 CFR part 110.                                       
    1. Application for import or export of                              
     reactors and other facilities and                                  
     components which must be reviewed by                               
     the Commission and the Executive                                   
     Branch, for example, actions under 10                              
     CFR 110.40(b).                                                     
      Application--new license............  $8,600.                     
      Amendment...........................  $8,600.                     
    2. Application for import or export of                              
     reactor components and initial                                     
     exports of other equipment requiring                               
     Executive Branch review only, for                                  
     example, those actions under 10 CFR                                
     110.41(a)(1)-(8).                                                  
      Application--new license............  $5,300.                     
      Amendment...........................  $5,300.                     
    3. Application for export of                                        
     components requiring foreign                                       
     government assurances only.                                        
      Application--new license............  $3,300.                     
      Amendment...........................  $3,300.                     
    4. Application for export or import of                              
     other facility components and                                      
     equipment not requiring Commission                                 
     review, Executive Branch review, or                                
     foreign government assurances.                                     
      Application--new license............  $1,300.                     
      Amendment...........................  $1,300.                     
    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 analysis or                                   
     review.                                                            
      Amendment...........................  $130                        
------------------------------------------------------------------------
\1\Fees will not be charged for orders issued by the Commission pursuant
  to Sec. 2.202 of this chapter or for amendments resulting specifically
  from the requirements of these types of Commission orders. Fees will  
  be charged for approvals issued under a specific exemption provision  
  of the Commission's regulations under Title 10 of the Code of Federal 
  Regulations (e.g. Secs. 50.12, 73.5) and any other sections now or    
  hereafter in effect regardless of whether the approval is in the form 
  of a license amendment, letter of approval, safety evaluation report, 
  or other form. Fees for licenses in this schedule that are initially  
  issued for less than full power are based on review through the       
  issuance of a full power license (generally full power is considered  
  100 percent of the facility's full rated power). Thus, if a licensee  
  received a low power license or a temporary license for less than full
  power and subsequently receives full power authority (by way of       
  license amendment or otherwise), the total costs for the license will 
  be determined through that period when authority is granted for full  
  power operation. If a situation arises in which the Commission        
  determines that full operating power for a particular facility should 
  be less than 100 percent of full rated power, the total costs for the 
  license will be at that determined lower operating power level and not
  at the 100 percent capacity.                                          
\2\Full cost fees will be determined based on the professional staff    
  time and appropriate contractual support services expended. For       
  applications currently on file and for which fees are determined based
  on the full cost expended for the review, the professional staff hours
  expended for the review of the application up to the effective date of
  this rule will be determined at the professional rates established for
  the rules that became effective on June 20, 1984, January 30, 1989,   
  July 2, 1990, August 9, 1991, August 24, 1992, and August 19, 1993, as
  appropriate. For those applications currently on file for which review
  costs have reached an applicable fee ceiling established by the June  
  20, 1984, and July 2, 1990, rules but are still pending completion of 
  the review, the cost incurred after any applicable ceiling was reached
  through January 29, 1989, will not be billed to the applicant. Any    
  professional staff-hours expended above those ceilings on or after    
  January 30, 1989, will be assessed at the applicable rates established
  by Sec. 170.20, as appropriate, except for topical reports whose costs
  exceed $50,000. Costs which exceed $50,000 for any topical report,    
  amendment, revision or supplement to a topical report completed or    
  under review from January 30, 1989, through August 8, 1991, will not  
  be billed to the applicant. Any professional hours expended on or     
  after August 9, 1991, will be assessed at the applicable rate         
  established in Sec. 170.20. In no event will the total review costs be
  less than twice the hourly rate shown in Sec. 170.20.                 
* * * * * * *                                                           
\4\Fees will not be assessed for requests/reports submitted to the NRC: 
1. In response to a Generic Letter or NRC Bulletin that does not result 
  in an amendment to the license, does not result in the review of an   
  alternate method or reanalysis to meet the requirements of the Generic
  Letter or does not involve an unreviewed safety issue;                
2. In response to an NRC request (at the Associate Office Director level
  or above) to resolve an identified safety or environmental issue, or  
  to assist NRC in developing a rule, regulatory guide, policy          
  statement, generic letter, or bulletin; or                            
3. As a means of exchanging information between industry organizations  
  and the NRC for the purpose of supporting generic regulatory          
  improvements or efforts.                                              

    5. Section 170.31 is revised to read as follows:


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

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

                       Schedule of Materials Fees                       
                     [See footnotes at end of table]                    
------------------------------------------------------------------------
Category of materials licenses and type of                              
                  fees\1\                             Fee\2\\3\         
------------------------------------------------------------------------
1. Special nuclear material:                                            
    A. Licenses for possession and use of                               
     200 grams or more of plutonium in                                  
     unsealed form or 350 grams or more of                              
     contained U-235 in unsealed form or                                
     200 grams or more of U-233 in                                      
     unsealed form. This includes                                       
     applications to terminate licenses as                              
     well as licenses authorizing                                       
     possession only:                                                   
        License, Renewal, Amendment.......  Full Cost.                  
        Inspections.......................  Full Cost.                  
    B. Licenses for receipt and storage of                              
     spent fuel at an independent spent                                 
     fuel storage installation (ISFSI):                                 
        License, Renewal, Amendment.......  Full Cost.                  
        Inspections.......................  Full Cost.                  
    C. Licenses for possession and use of                               
     special nuclear material in sealed                                 
     sources contained in devices used in                               
     industrial measuring systems,                                      
     including x-ray fluorescence                                       
     analyzers:\4\                                                      
        Application--New license..........  $570                        
        Renewal...........................  680                         
        Amendment.........................  360                         
        Inspections.......................  670                         
    D. All other special nuclear material                               
     licenses, except licenses authorizing                              
     special nuclear material in unsealed                               
     form in combination that would                                     
     constitute a critical quantity, as                                 
     defined in Sec. 150.11 of this                                     
     chapter, for which the licensee shall                              
     pay the same fees as those for                                     
     Category 1A:\4\                                                    
        Application--New license..........  600                         
        Renewal...........................  430                         
        Amendment.........................  330                         
        Inspections.......................  1,200                       
    E. Licenses for construction and                                    
     operation of a uranium enrichment                                  
     facility.                                                          
        Application.......................  125,000                     
        License, Renewal, Amendment.......  Full Cost.                  
        Inspections.......................  Full Cost.                  
2. Source material:                                                     
    A. Licenses for possession and use of                               
     source material in recovery                                        
     operations such as milling, in-situ                                
     leaching, heap-leaching, refining                                  
     uranium mill concentrates to uranium                               
     hexafluoride, ore buying stations,                                 
     ion exchange facilities and in                                     
     processing of ores containing source                               
     material for extraction of metals                                  
     other than uranium or thorium,                                     
     including licenses authorizing the                                 
     possession of byproduct waste                                      
     material (tailings) from source                                    
     material recovery operations, as well                              
     as licenses authorizing the                                        
     possession and maintenance of a                                    
     facility in a standby mode:                                        
        License, Renewal, Amendment.......  Full Cost.                  
        Inspections.......................  Full Cost.                  
    B. Licenses which authorize only the                                
     possession, use and/or installation                                
     of source material for shielding:                                  
        Application--New license..........  230                         
        Renewal...........................  160                         
        Amendment.........................  270                         
        Inspections.......................  560                         
    C. All other source material licenses:                              
        Application--New license..........  2,500                       
        Renewal...........................  1,400                       
        Amendment.........................  450                         
        Inspections.......................  2,500                       
3. Byproduct material:                                                  
    A. Licenses of broad scope for                                      
     possession and use of byproduct                                    
     material issued pursuant to parts 30                               
     and 33 of this chapter for processing                              
     or manufacturing of items containing                               
     byproduct material for commercial                                  
     distribution:                                                      
        Application--New license..........  2,700                       
        Renewal...........................  1,700                       
        Amendment.........................  470                         
        Inspections.......................  9,800\5\                    
    B. Other licenses for possession and                                
     use of byproduct material issued                                   
     pursuant to part 30 of this chapter                                
     for processing or manufacturing of                                 
     items containing byproduct material                                
     for commercial distribution:                                       
        Application--New license..........  1,300                       
        Renewal...........................  2,200                       
        Amendment.........................  600                         
        Inspections.......................  3,000\5\                    
    C. Licenses issued pursuant to Secs.                                
     32.72, 32.73, and/or 32.74 of this                                 
     chapter authorizing the processing or                              
     manufacturing and distribution or                                  
     redistribution of                                                  
     radiopharmaceuticals, generators,                                  
     reagent kits and/or sources and                                    
     devices containing byproduct                                       
     material:                                                          
        Application--New license..........  3,500                       
        Renewal...........................  3,000                       
        Amendment.........................  490                         
        Inspections.......................  3,400                       
    D. Licenses and approvals issued                                    
     pursuant to Secs. 32.72, 32.73, and/                               
     or 32.74 of this chapter authorizing                               
     distribution or redistribution of                                  
     radiopharmaceuticals, generators,                                  
     reagent kits and/or sources or                                     
     devices not involving processing of                                
     byproduct material:                                                
        Application--New license..........  1,300                       
        Renewal...........................  550                         
        Amendment.........................  370                         
        Inspections.......................  3,000                       
    E. Licenses for possession and use of                               
     byproduct material in sealed sources                               
     for irradiation of materials in which                              
     the source is not removed from its                                 
     shield (self-shielded units):                                      
        Application--New license..........  930                         
        Renewal...........................  760                         
        Amendment.........................  330                         
        Inspections.......................  1,200                       
    F. Licenses for possession and use of                               
     less than 10,000 curies of byproduct                               
     material in sealed sources for                                     
     irradiation of materials in which the                              
     source is exposed for irradiation                                  
     purposes. This category also includes                              
     underwater irradiators for                                         
     irradiation of materials where the                                 
     source is not exposed for irradiation                              
     purposes.                                                          
        Application--New license..........  1,300                       
        Renewal...........................  1,000                       
        Amendment.........................  330                         
        Inspections.......................  1,300                       
    G. Licenses for possession and use of                               
     10,000 curies or more of byproduct                                 
     material in sealed sources for                                     
     irradiation of materials in which the                              
     source is exposed for irradiation                                  
     purposes. This category also includes                              
     underwater irradiators for                                         
     irradiation of materials where the                                 
     source is not exposed for irradiation                              
     purposes.                                                          
        Application--New license..........  5,300                       
        Renewal...........................  4,800                       
        Amendment.........................  640                         
        Inspections.......................  4,100                       
    H. Licenses issued pursuant to subpart                              
     A of part 32 of this chapter to                                    
     distribute items containing byproduct                              
     material that require device review                                
     to persons exempt from the licensing                               
     requirements of part 30 of this                                    
     chapter, except specific licenses                                  
     authorizing redistribution of items                                
     that have been authorized for                                      
     distribution to persons exempt from                                
     the licensing requirements of part 30                              
     of this chapter:                                                   
        Application--New license..........  2,400                       
        Renewal...........................  2,300                       
        Amendment.........................  800                         
        Inspections.......................  1,100                       
    I. Licenses issued pursuant to subpart                              
     A of part 32 of this chapter to                                    
     distribute items containing byproduct                              
     material or quantities of byproduct                                
     material that do not require device                                
     evaluation to persons exempt from the                              
     licensing requirements of part 30 of                               
     this chapter, except for specific                                  
     licenses authorizing redistribution                                
     of items that have been authorized                                 
     for distribution to persons exempt                                 
     from the licensing requirements of                                 
     part 30 of this chapter:                                           
        Application--New license..........  4,600                       
        Renewal...........................  2,700                       
        Amendment.........................  1,100                       
        Inspections.......................  1,000                       
    J. Licenses issued pursuant to subpart                              
     B of part 32 of this chapter to                                    
     distribute items containing byproduct                              
     material that require sealed source                                
     and/or device review to persons                                    
     generally licensed under part 31 of                                
     this chapter, except specific                                      
     licenses authorizing redistribution                                
     of items that have been authorized                                 
     for distribution to persons generally                              
     licensed under part 31 of this                                     
     chapter:                                                           
        Application--New license..........  2,100                       
        Renewal...........................  1,400                       
        Amendment.........................  370                         
        Inspections.......................  1,800                       
    K. Licenses issued pursuant to subpart                              
     B of part 32 of this chapter to                                    
     distribute items containing byproduct                              
     material or quantities of byproduct                                
     material that do not require sealed                                
     source and/or device review to                                     
     persons generally licensed under part                              
     31 of this chapter, except specific                                
     licenses authorizing redistribution                                
     of items that have been authorized                                 
     for distribution to persons generally                              
     licensed under part 31 of this                                     
     chapter:                                                           
        Application--New license..........  2,000                       
        Renewal...........................  1,400                       
        Amendment.........................  270                         
        Inspections.......................  1,000                       
    L. Licenses of broad scope for                                      
     possession and use of byproduct                                    
     material issued pursuant to parts 30                               
     and 33 of this chapter for research                                
     and development that do not authorize                              
     commercial distribution:                                           
        Application--New license..........  4,100                       
        Renewal...........................  2,200                       
        Amendment.........................  630                         
        Inspections.......................  4,700                       
    M. Other licenses for possession and                                
     use of byproduct material issued                                   
     pursuant to part 30 of this chapter                                
     for research and development that do                               
     not authorize commercial                                           
     distribution:                                                      
        Application--New license..........  1,400                       
        Renewal...........................  1,500                       
        Amendment.........................  690                         
        Inspections.......................  2,200                       
    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, 4C, and 4D:                                                    
        Application--New license..........  1,700                       
        Renewal...........................  2,100                       
        Amendment.........................  680                         
        Inspections.......................  2,400                       
    O. Licenses for possession and use of                               
     byproduct material issued pursuant to                              
     part 34 of this chapter for                                        
     industrial radiography operations:                                 
        Application--New license..........  3,800                       
        Renewal...........................  2,900                       
        Amendment.........................  690                         
        Inspections.......................  3,500\5\                    
    P. All other specific byproduct                                     
     material licenses, except those in                                 
     Categories 4A through 9D:                                          
        Application--New license..........  570                         
        Renewal...........................  680                         
        Amendment.........................  360                         
        Inspections.......................  1,500                       
4. Waste disposal and processing:                                       
    A. Licenses specifically authorizing                                
     the receipt of waste byproduct                                     
     material, source material, or special                              
     nuclear material from other persons                                
     for the purpose of contingency                                     
     storage or commercial land disposal                                
     by the licensee; or licenses                                       
     authorizing contingency storage of                                 
     low-level radioactive waste at the                                 
     site of nuclear power reactors; or                                 
     licenses for receipt of waste from                                 
     other persons for incineration or                                  
     other treatment, packaging of                                      
     resulting waste and residues, and                                  
     transfer of packages to another                                    
     person authorized to receive or                                    
     dispose of waste material:                                         
        License, renewal, amendment.......  Full Cost.                  
        Inspections.......................  Full Cost.                  
    B. Licenses specifically authorizing                                
     the receipt of waste byproduct                                     
     material, source material, or special                              
     nuclear material from other persons                                
     for the purpose of packaging or                                    
     repackaging the material. The                                      
     licensee will dispose of the material                              
     by transfer to another person                                      
     authorized to receive or dispose of                                
     the material:                                                      
        Application--New license..........  4,000                       
        Renewal...........................  2,100                       
        Amendment.........................  430                         
        Inspections.......................  2,300                       
    C. Licenses specifically authorizing                                
     the receipt of prepackaged waste                                   
     byproduct material, source material,                               
     or special nuclear material from                                   
     other persons. The licensee will                                   
     dispose of the material by transfer                                
     to another person authorized to                                    
     receive or dispose of the material:                                
        Application--New license..........  1,500                       
        Renewal...........................  1,100                       
        Amendment.........................  250                         
        Inspections.......................  2,800                       
    D. Licenses specifically authorizing                                
     the receipt from other persons of                                  
     byproduct material as defined in                                   
     Section 11.e.(2) of the Atomic Energy                              
     Act for possession and disposal                                    
     except those licenses subject to fees                              
     in Category 2.A.                                                   
        License, renewal, amendment.......  Full Cost.                  
        Inspections.......................  Full Cost.                  
5. Well logging:                                                        
    A. Licenses for possession and use of                               
     byproduct material, source material,                               
     and/or special nuclear material for                                
     well logging, well surveys, and                                    
     tracer studies other than field                                    
     flooding tracer studies:                                           
        Application--New license..........  3,700                       
        Renewal...........................  3,900                       
        Amendment.........................  650                         
        Inspections.......................  3,600                       
    B. Licenses for possession and use of                               
     byproduct material for field flooding                              
     tracer studies:                                                    
        License, renewal, amendment.......  Full Cost.                  
        Inspections.......................  1,300                       
6. Nuclear laundries:                                                   
    A. Licenses for commercial collection                               
     and laundry of items contaminated                                  
     with byproduct material, source                                    
     material, or special nuclear                                       
     material:                                                          
        Application--New license..........  4,500                       
        Renewal...........................  2,900                       
        Amendment.........................  700                         
        Inspections.......................  4,500                       
7. Human use of byproduct, source, or                                   
 special nuclear material:                                              
    A. Licenses issued pursuant to parts                                
     30, 35, 40, and 70 of this chapter                                 
     for human use of byproduct material,                               
     source material, or special nuclear                                
     material in sealed sources contained                               
     in teletherapy devices:                                            
        Application--New license..........  3,700                       
        Renewal...........................  1,200                       
        Amendment.........................  560                         
        Inspections.......................  2,300                       
    B. Licenses of broad scope issued to                                
     medical institutions or two or more                                
     physicians pursuant to parts 30, 33,                               
     35, 40, and 70 of this chapter                                     
     authorizing research and development,                              
     including human use of byproduct                                   
     material, except licenses for                                      
     byproduct material, source material,                               
     or special nuclear material in sealed                              
     sources contained in teletherapy                                   
     devices:                                                           
        Application--New license..........  2,700                       
        Renewal...........................  3,500                       
        Amendment.........................  500                         
        Inspections.......................  8,700                       
    C. Other licenses issued pursuant to                                
     parts 30, 35, 40, and 70 of this                                   
     chapter for human use of byproduct                                 
     material, source material, and/or                                  
     special nuclear material, except                                   
     licenses for byproduct material,                                   
     source material, or special nuclear                                
     material in sealed sources contained                               
     in teletherapy devices:                                            
        Application--New license..........  1,100                       
        Renewal...........................  1,400                       
        Amendment.........................  500                         
        Inspections.......................  2,100                       
8. Civil defense:                                                       
    A. Licenses for possession and use of                               
     byproduct material, source material,                               
     or special nuclear material for civil                              
     defense activities:                                                
        Application--New license..........  670                         
        Renewal...........................  700                         
        Amendment.........................  480                         
        Inspections.......................  1,100                       
9. Device, product, or sealed source                                    
 safety evaluation:                                                     
    A. Safety evaluation of devices or                                  
     products containing byproduct                                      
     material, source material, or special                              
     nuclear material, except reactor fuel                              
     devices, for commercial distribution:                              
        Application--each device..........  3,700                       
        Amendment--each device............  1,300                       
        Inspections.......................  Full Cost                   
    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..........  1,900                       
        Amendment--each device............  670                         
        Inspections.......................  Full Cost.                  
    C. Safety evaluation of sealed sources                              
     containing byproduct material, source                              
     material, or special nuclear                                       
     material, except reactor fuel, for                                 
     commercial distribution:                                           
        Application--each source..........  800                         
        Amendment--each source............  270                         
        Inspections.......................  Full Cost.                  
    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..........  400                         
        Amendment--each source............  130                         
        Inspections.......................  Full Cost.                  
10. Transportation of radioactive                                       
 material:                                                              
    A. Evaluation of casks, packages, and                               
     shipping containers:                                               
        Approval, Renewal, Amendment......  Full Cost.                  
        Inspections.......................  Full Cost.                  
    B. Evaluation of 10 CFR part 71                                     
     quality assurance programs:                                        
        Application--Approval.............  370                         
        Renewal...........................  280                         
        Amendment.........................  320                         
        Inspections.......................  Full Cost.                  
11. Review of standardized spent fuel                                   
 facilities:                                                            
        Approval, Renewal, Amendment......  Full Cost.                  
        Inspections.......................  Full Cost.                  
12. Special projects:\6\                                                
        Approvals and preapplication/       Full Cost.                  
         licensing activities.                                          
        Inspections.......................  Full Cost.                  
13. A. Spent fuel storage cask Certificate                              
 of Compliance:                                                         
        Approvals.........................  Full Cost.                  
        Amendments, revisions, and          Full Cost.                  
         supplements.                                                   
        Reapproval........................  Full Cost.                  
    B. Inspections related to spent fuel    Full Cost.                  
     storage cask Certificate of                                        
     Compliance.                                                        
    C. Inspections related to storage of    Full Cost.                  
     spent fuel under Sec. 72.210 of this                               
     chapter.                                                           
14. Byproduct, source, or special nuclear                               
 material licenses and other approvals                                  
 authorizing decommissioning,                                           
 decontamination, reclamation, or site                                  
 restoration activities pursuant to 10 CFR                              
 parts 30, 40, 70, and 72 of this chapter:                              
        Approval, Renewal, Amendment......  Full Cost.                  
        Inspections.......................  Full Cost.                  
15. Import and Export licenses:                                         
    Licenses issued pursuant to 10 CFR                                  
     part 110 of this chapter for the                                   
     import and export only of special                                  
     nuclear material, source material,                                 
     byproduct material, heavy water,                                   
     tritium, or nuclear grade graphite.                                
    A. Application for import or export of                              
     HEU and other materials which must be                              
     reviewed by the Commission and the                                 
     Executive Branch, for example, those                               
     actions under 10 CFR 110.40(b).                                    
        Application-new license...........  8,600                       
        Amendment.........................  8,600                       
    B. Application for import or export of                              
     special nuclear material, heavy                                    
     water, nuclear grade graphite,                                     
     tritium, and source material, and                                  
     initial exports of materials                                       
     requiring Executive Branch review                                  
     only, for example, those actions                                   
     under 10 CFR 110.41(a)(2)-(8).                                     
        Application-new license...........  5,300                       
        Amendment.........................  5,300                       
    C. Application for export of routine                                
     reloads of LEU reactor fuel and                                    
     exports of source material requiring                               
     foreign government assurances only.                                
        Application-new license...........  3,300                       
        Amendment.........................  3,300                       
    D. Application for export or import of                              
     other materials not requiring                                      
     Commission review, Executive Branch                                
     review or foreign government                                       
     assurances.                                                        
        Application-new license...........  1,300                       
        Amendment.........................  1,300                       
    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 analysis or                                   
     review.                                                            
        Amendment.........................  130                         
16. Reciprocity:                                                        
    Agreement State licensees who conduct                               
     activities in a non-Agreement State                                
     under the reciprocity provisions of                                
     10 CFR 150.20.                                                     
        Application (each filing of Form    700                         
         241).                                                          
        Renewal...........................  N/A                         
        Revisions.........................  200                         
        Inspections.......................  Fees as specified in        
                                             appropriate fee categories 
                                             in this section.           
------------------------------------------------------------------------
\1\Types of fees--Separate charges, as shown in the schedule, will be   
  assessed for preapplication consultations and reviews and applications
  for new licenses and approvals, issuance of new licenses and          
  approvals, amendments and renewals to existing licenses and approvals,
  safety evaluations of sealed sources and devices, and inspections. The
  following guidelines apply to these charges:                          
(a) Application fees--Applications for new materials licenses and       
  approvals; applications to reinstate expired, terminated or inactive  
  licenses and approvals except those subject to fees assessed at full  
  cost; and applications filed by Agreement State licensees to register 
  under the general license provisions of 10 CFR 150.20, must be        
  accompanied by the prescribed application fee for each category,      
  except that: (1) applications for licenses covering more than one fee 
  category of special nuclear material or source material must be       
  accompanied by the prescribed application fee for the highest fee     
  category; and (2) applications for licenses under Category 1E must be 
  accompanied by an application fee of $125,000.                        
(b) License/approval/review fees--Fees for applications for new licenses
  and approvals and for preapplication consultations and reviews subject
  to full cost fees (fee Categories 1A, 1B, 1E, 2A, 4A, 4D, 5B, 10A, 11,
  12, 13A, and 14) are due upon notification by the Commission in       
  accordance with Sec. 170.12(b), (e), and (f).                         
(c) Renewal/reapproval fees--Applications for renewal of licenses and   
  approvals must be accompanied by the prescribed renewal fee for each  
  category, except that fees for applications for renewal of licenses   
  and approvals subject to full cost fees (fee Categories 1A, 1B, 1E,   
  2A, 4A, 4D, 5B, 10A, 11, 12, 13A, and 14) are due upon notification by
  the Commission in accordance with Sec. 170.12(d).                     
(d) Amendment fees--                                                    
(1) Applications for amendments to licenses and approvals, except those 
  subject to fees assessed at full costs, 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. For those licenses and approvals    
  subject to full costs (fee Categories 1A, 1B, 1E, 2A, 4A, 4D, 5B, 10A,
  11, 12, 13A, and 14), amendment fees are due upon notification by the 
  Commission in accordance with Sec. 170.12(c).                         
(2) An application for amendment to a materials license or approval that
  would place the license or approval in a higher fee category or add a 
  new fee category must be accompanied by the prescribed application fee
  for the new category.                                                 
(3) An application for amendment to a license or approval that would    
  reduce the scope of a licensee's program to a lower fee category must 
  be accompanied by the prescribed amendment fee for the lower fee      
  category.                                                             
(4) Applications to terminate licenses authorizing small materials      
  programs, when no dismantling or decontamination procedure is         
  required, are not subject to fees.                                    
(e) Inspection fees--Although a single inspection fee is shown in the   
  regulation, separate charges will be assessed for each routine and    
  nonroutine inspection performed, including inspections conducted by   
  the NRC of Agreement State licensees who conduct activities in non-   
  Agreement States under the reciprocity provisions of 10 CFR 150.20.   
  Inspections resulting from investigations conducted by the Office of  
  Investigations and nonroutine inspections that result from third-party
  allegations are not subject to fees. If a licensee holds more than one
  materials license at a single location, a fee equal to the highest fee
  category covered by the licenses will be assessed if the inspections  
  are conducted at the same time unless the inspection fees are based on
  the full cost to conduct the inspection. The fees assessed at full    
  cost will be determined based on the professional staff time required 
  to conduct the inspection multiplied by the rate established under    
  Sec. 170.20 plus any applicable contractual support services costs    
  incurred. Licenses covering more than one category will be charged a  
  fee equal to the highest fee category covered by the license.         
  Inspection fees are due upon notification by the Commission in        
  accordance with Sec. 170.12(g). See Footnote 5 and 6 for other        
  inspection notes.                                                     
\2\Fees will not be charged for orders issued by the Commission pursuant
  to 10 CFR 2.202 or for amendments resulting specifically from the     
  requirements of these types of Commission orders. However, fees will  
  be charged for approvals issued under a specific exemption provision  
  of the Commission's regulations under Title 10 of the Code of Federal 
  Regulations (e.g., 10 CFR 30.11, 40.14, 70.14, 73.5, and any other    
  sections now or hereafter in effect) regardless of whether the        
  approval is in the form of a license amendment, letter of approval,   
  safety evaluation report, or other form. In addition to the fee shown,
  an applicant may be assessed an additional fee for sealed source and  
  device evaluations as shown in Categories 9A through 9D.              
\3\Full cost fees will be determined based on the professional staff    
  time and appropriate contractual support services expended. For those 
  applications currently on file and for which fees are determined based
  on the full cost expended for the review, the professional staff hours
  expended for the review of the application up to the effective date of
  this rule will be determined at the professional rates established for
  the final rules that became effective on June 20, 1984, January 30,   
  1989, July 2, 1990, August 9, 1991, August 24, 1992, and August 19,   
  1993 rules, as appropriate. For applications currently on file for    
  which review costs have reached an applicable fee ceiling established 
  by the June 20, 1984, and July 2, 1990, rules, but are still pending  
  completion of the review, the cost incurred after any applicable      
  ceiling was reached through January 29, 1989, will not be billed to   
  the applicant. Any professional staff-hours expended above those      
  ceilings on or after January 30, 1989, will be assessed at the        
  applicable rates established by Sec. 170.20, as appropriate, except   
  for topical reports whose costs exceed $50,000. Costs which exceed    
  $50,000 for each topical report, amendment, revision, or supplement to
  a topical report completed or under review from January 30, 1989,     
  through August 8, 1991, will not be billed to the applicant. Any      
  professional hours expended on or after August 9, 1991, will be       
  assessed at the applicable rate established in Sec. 170.20. The       
  minimum total review cost is twice the hourly rate shown in Sec.      
  170.20.                                                               
\4\Licensees paying fees under Categories 1A, 1B, and 1E are not subject
  to fees under Categories 1C and 1D for sealed sources authorized in   
  the same license except in those instances in which an application    
  deals only with the sealed sources authorized by the license.         
  Applicants for new licenses or renewal of existing licenses that cover
  both byproduct material and special nuclear material in sealed sources
  for use in gauging devices will pay the appropriate application or    
  renewal fee for fee Category 1C only.                                 
\5\For a license authorizing shielded radiographic installations or     
  manufacturing installations at more than one address, a separate fee  
  will be assessed for inspection of each location, except that if the  
  multiple installations are inspected during a single visit, a single  
  inspection fee will be assessed.                                      
\6\Fees will not be assessed for requests/reports submitted to the NRC: 
1. In response to a Generic Letter or NRC Bulletin that does not result 
  in an amendment to the license, does not result in the review of an   
  alternate method or reanalysis to meet the requirements of the Generic
  Letter or does not involve an unreviewed safety issue;                
2. In response to an NRC request (at the Associate Office Director level
  or above) to resolve an identified safety or environmental issue, or  
  to assist NRC in developing a rule, regulatory guide, policy          
  statement, generic letter, or bulletin; or                            
3. As a means of exchanging information between industry organizations  
  and the NRC for the purpose of supporting generic regulatory          
  improvements or efforts.                                              

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

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

    Authority: Sec. 7601, Pub. L. 99-272, 100 Stat. 146, as amended 
by sec. 5601, Pub. L. 100-203, 101 Stat. 1330, as amended by Sec. 
3201, Pub. L. 101-239, 103 Stat. 2106 as amended by sec. 6101, Pub. 
L. 101-508, 104 Stat. 1388, (42 U.S.C. 2213); sec. 301, Pub. L. 92-
314, 86 Stat. 222 (42 U.S.C. 2201(w)); sec. 201, 88 Stat. 1242, as 
amended (42 U.S.C. 5841); sec. 2903, Pub. L. 102-486, 106 Stat. 
3125, (42 U.S.C. 2214 note).

    7. In Sec. 171.11, paragraph (a)(2) is revised to read as follows:


Sec. 171.11  Exemptions.

    (a) * * *
* * * * *
    (2) Federally-owned and State-owned research reactors used 
primarily for educational training and academic research purposes. For 
purposes of this exemption, the term research reactor means a nuclear 
reactor that--
    (i) Is licensed by the Nuclear Regulatory Commission under section 
104c. of the Atomic Energy Act of 1954 (42 U.S.C. 2134(c)) for 
operation at a thermal power level of 10 megawatts or less; and
    (ii) If so licensed for operation at a thermal power level of more 
than 1 megawatt, does not contain--
    (A) A circulating loop through the core in which the licensee 
conducts fuel experiments;
    (B) A liquid fuel loading; or
    (C) An experimental facility in the core in excess of 16 square 
inches in cross-section.
* * * * *
    8. In Sec. 171.15, paragraphs (a), (b)(3), (c)(2), (d), and (e) are 
revised to read as follows:


Sec. 171.15  Annual Fees: Reactor operating licenses.

    (a) Each person licensed to operate a power, test, or research 
reactor shall pay the annual fee for each unit for which the person 
holds an operating license at any time during the Federal FY in which 
the fee is due, except for those test and research reactors exempted in 
Sec. 171.11(a)(1) and (a)(2).
    (b) * * *
    (3) Generic activities required largely for NRC to regulate power 
reactors, e.g., updating part 50 of this chapter, or operating the 
Incident Response Center. The base FY 1994 annual fees for each 
operating power reactor subject to fees under this section and which 
must be collected before September 30, 1994, are shown in paragraph (d) 
of this section.
    (c) * * *
    (2) The FY 1994 surcharge to be added to each operating power 
reactor is $275,000. This amount is calculated by dividing the total 
cost for these activities ($29.7 million) by the number of operating 
power reactors (108).
    (d) The FY 1994 part 171 annual fees for operating power reactors 
are as follows: 

                                   Part 171 Annual Fees by Reactor Category\1\                                  
                                               [Fees in thousands]                                              
----------------------------------------------------------------------------------------------------------------
                                                                                  Added   Total fee   Estimated 
                      Reactor vendor                         Number    Base fee  charge              collections
----------------------------------------------------------------------------------------------------------------
Babcock/Wilcox.............................................        7     $2,840      275     $3,115      $21,805
Combustion Eng.............................................       15      2,840      275      3,115       46,725
GE Mark I..................................................       24      2,821      275      3,096       74,304
GE Mark II.................................................        8      2,821      275      3,096       24,768
GE Mark III................................................        4      2,821      275      3,096       12,384
Westinghouse...............................................       50      2,841      275      3,116     $155,800
                                                            ---------                               ------------
    Totals.................................................      108                                   $335,786 
----------------------------------------------------------------------------------------------------------------
\1\Fees assessed will vary for plants west of the Rocky Mountains and for Westinghouse plants with ice          
  condensers.                                                                                                   

    (e) The annual fees for licensees authorized to operate a nonpower 
(test and research) reactor licensed under part 50 of this chapter, 
except for those reactors exempted from fees under Sec. 171.11(a), are 
as follows: 

Research reactor.............................................    $62,200
Test reactor.................................................   $62,200 
                                                                        

* * * * *
    9. In Sec. 171.16, the introductory text of paragraph (c) and 
paragraphs (c)(4), (d), and (e) are revised to read as follows:


Sec. 171.16  Annual Fees: Materials Licensees, Holders of Certificates 
of Compliance, Holders of Sealed Source and Device Registrations, 
Holders of Quality Assurance Program Approvals and Government agencies 
licensed by the NRC.

* * * * *
    (c) A licensee who is required to pay an annual fee under this 
section may qualify as a small entity. If a licensee qualifies as a 
small entity and provides the Commission with the proper certification, 
the licensee may pay reduced annual fees for FY 1994 as follows: 

------------------------------------------------------------------------
                                                               Maximum  
                                                              annual fee
                                                                 per    
                                                               licensed 
                                                               category 
------------------------------------------------------------------------
Small Businesses and Small not-for-profit Organizations                 
 (Gross Annual Receipts):                                               
  $250,000 to $3.5 million.................................       $1,800
  Less than $250,000.......................................          400
Private Practice Physicians (Gross Annual Receipts):                    
  $250,000 to $1.0 million.................................        1,800
  Less than $250,000.......................................          400
Small Governmental Jurisdictions (Including publicly                    
 supported educational institutions) (Population):                      
  20,000 to 50,000.........................................        1,800
  Less than 20,000.........................................          400
Educational Institutions that are not State or Publicly                 
 Supported, and have 500 Employees or Less.................        1,800
------------------------------------------------------------------------

* * * * *
    (4) For FY 1994, the maximum annual fee (base annual fee plus 
surcharge) a small entity is required to pay is $1,800 for each 
category applicable to the license(s).
    (d) The FY 1994 annual fees for materials licensees and holders of 
certificates, registrations or approvals subject to fees under this 
section are as follows:

   Schedule of Materials Annual Fees and Fees for Government Agencies   
                             Licensed by NRC                            
                    [See footnotes at end of table]                     
------------------------------------------------------------------------
                                                             Annual     
           Category of materials licenses                Fees\1\\2\\3\  
------------------------------------------------------------------------
1. Special nuclear material:                                            
    A.(1) Licenses for possession and use of U-235 or                   
     plutonium for fuel fabrication activities.                         
------------------------------------------------------------------------


                                                                                                                
                   High Enriched Fuel                        License No.        Docket No.                      
Babcock and Wilcox.......................................  SNM-42            70-27                    $3,176,000
Nuclear Fuel Services....................................  SNM-124           70-143                    3,176,000
Low Enriched Fuel:                                                                                              
    B&W Fuel Company.....................................  SNM-1168          70-1201                   1,429,000
    Combustion Engineering (Hematite)....................  SNM-33            70-36                     1,429,000
    General Electric Company.............................  SNM-1097          70-1113                   1,429,000
    Siemens Nuclear Power................................  SNM-1227          70-1257                   1,429,000
    Westinghouse Electric Company........................  SNM-1107          70-1151                   1,429,000
    General Atomic.......................................  SNM-696           70-734                   1,429,000 


        Surcharge....................................             55,770
    A. (2) All other special nuclear materials                          
     licenses not included in 1.A.(1) above 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...............            254,000
        Surcharge....................................             55,770
    B. Licenses for receipt and storage of spent fuel                   
     at an independent spent fuel storage                               
     installation (ISFSI)............................            363,500
        Surcharge....................................              1,670
    C. Licenses for possession and use of special                       
     nuclear material in sealed sources contained in                    
     devices used in industrial measuring systems,                      
     including x-ray fluorescence analyzers..........              1,800
        Surcharge....................................                170
    D. All other special nuclear material licenses,                     
     except licenses authorizing special nuclear                        
     material in unsealed form in combination that                      
     would constitute a critical quantity, as defined                   
     in Sec. 150.11 of this chapter, for which the                      
     licensee shall pay the same fees as those for                      
     Category 1.A.(2)................................              2,200
        Surcharge....................................              1,670
    E. Licenses for the operation of a uranium                          
     enrichment facility.............................            \11\N/A
2. Source material:                                                     
    A.(1) Licenses for possession and use of source                     
     material for refining uranium mill concentrates                    
     to uranium hexafluoride.........................          1,114,000
        Surcharge....................................             55,770
        (2) Licenses for possession and use of source                   
         material in recovery operations such as                        
         milling, in-situ leaching, heap-leaching,                      
         ore buying stations, ion exchange facilities                   
         and in processing of ores containing source                    
         material for extraction of metals other than                   
         uranium or thorium, including licenses                         
         authorizing the possession of byproduct                        
         waste material (tailings) from source                          
         material recovery operations, as well as                       
         licenses authorizing the possession and                        
         maintenance of a facility in a standby mode.                   
            Class I facilities\4\....................             94,300
            Class II facilities\4\...................             41,200
            Other facilities.........................             36,200
                Surcharge............................                170
    B. Licenses which authorize only the possession,                    
     use and/or installation of source material for                     
     shielding.......................................                800
        Surcharge....................................                170
    C. All other source material licenses............              8,700
        Surcharge....................................              1,670
3. Byproduct material:                                                  
    A. Licenses of broad scope for possession and use                   
     of byproduct material issued pursuant to parts                     
     30 and 33 of this chapter for processing or                        
     manufacturing of items containing byproduct                        
     material for commercial distribution............             19,700
        Surcharge....................................              1,670
    B. Other licenses for possession and use of                         
     byproduct material issued pursuant to part 30 of                   
     this chapter for processing or manufacturing of                    
     items containing byproduct material for                            
     commercial distribution.........................              6,000
        Surcharge....................................              1,670
    C. Licenses issued pursuant to Secs. 32.72,                         
     32.73, and/or 32.74 of this chapter authorizing                    
     the processing or manufacturing and distribution                   
     or redistribution of radiopharmaceuticals,                         
     generators, reagent kits and/or sources and                        
     devices containing byproduct material. This                        
     category also includes the possession and use of                   
     source material for shielding authorized                           
     pursuant to part 40 of this chapter when                           
     included on the same license....................             12,000
        Surcharge....................................              1,670
    D. Licenses and approvals issued pursuant to                        
     Secs. 32.72, 32.73, and/or 32.74 of this chapter                   
     authorizing distribution or redistribution of                      
     radiopharmaceuticals, generators, reagent kits                     
     and/or sources or devices not involving                            
     processing of byproduct material. This category                    
     also includes the possession and use of source                     
     material for shielding authorized pursuant to                      
     part 40 of this chapter when included on the                       
     same license....................................              6,000
        Surcharge....................................                170
    E. Licenses for possession and use of byproduct                     
     material in sealed sources for irradiation of                      
     materials in which the source is not removed                       
     from its shield (self-shielded units)...........              3,500
        Surcharge....................................                170
    F. Licenses for possession and use of less than                     
     10,000 curies of byproduct material in sealed                      
     sources for irradiation of materials in which                      
     the source is exposed for irradiation purposes.                    
     This category also includes underwater                             
     irradiators for irradiation of materials in                        
     which the source is not exposed for irradiation                    
     purposes........................................              4,500
        Surcharge....................................                170
    G. Licenses for possession and use of 10,000                        
     curies or more of byproduct material in sealed                     
     sources for irradiation of materials in which                      
     the source is exposed for irradiation purposes.                    
     This category also includes underwater                             
     irradiators for irradiation of materials in                        
     which the source is not exposed for irradiation                    
     purposes........................................             24,400
        Surcharge....................................                170
    H. Licenses issued pursuant to subpart A of part                    
     32 of this chapter to distribute items                             
     containing byproduct material that require                         
     device review to persons exempt from the                           
     licensing requirements of part 30 of this                          
     chapter, except specific licenses authorizing                      
     redistribution of items that have been                             
     authorized for distribution to persons exempt                      
     from the licensing requirements of part 30 of                      
     this chapter....................................              6,800
        Surcharge....................................                170
    I. Licenses issued pursuant to subpart A of part                    
     32 of this chapter to distribute items                             
     containing byproduct material or quantities of                     
     byproduct material that do not require device                      
     evaluation to persons exempt from the licensing                    
     requirements of part 30 of this chapter, except                    
     for specific licenses authorizing redistribution                   
     of items that have been authorized for                             
     distribution to persons exempt from the                            
     licensing requirements of part 30 of this                          
     chapter.........................................             12,500
        Surcharge....................................                170
    J. Licenses issued pursuant to subpart B of part                    
     32 of this chapter to distribute items                             
     containing byproduct material that require                         
     sealed source and/or device review to persons                      
     generally licensed under part 31 of this                           
     chapter, except specific licenses authorizing                      
     redistribution of items that have been                             
     authorized for distribution to persons generally                   
     licensed under part 31 of this chapter..........              6,600
        Surcharge....................................                170
    K. Licenses issued pursuant to subpart B of part                    
     31 of this chapter to distribute items                             
     containing byproduct material or quantities of                     
     byproduct material that do not require sealed                      
     source and/or device review to persons generally                   
     licensed under part 31 of this chapter, except                     
     specific licenses authorizing redistribution of                    
     items that have been authorized for distribution                   
     to persons generally licensed under part 31 of                     
     this chapter....................................              6,100
        Surcharge....................................                170
    L. Licenses of broad scope for possession and use                   
     of byproduct material issued pursuant to part 30                   
     and 33 of this chapter for research and                            
     development that do not authorize commercial                       
     distribution....................................             14,700
        Surcharge....................................              1,670
    M. Other licenses for possession and use of                         
     byproduct material issued pursuant to part 30 of                   
     this chapter for research and development that                     
     do not authorize commercial distribution........              5,100
        Surcharge....................................              1,670
    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, 4C, and 4D..              6,000
        Surcharge....................................              1,670
    O. Licenses for possession and use of byproduct                     
     material issued pursuant to part 34 of this                        
     chapter for industrial radiography operations.                     
     This category also includes the possession and                     
     use of source material for shielding authorized                    
     pursuant to part 40 of this chapter when                           
     authorized on the same license..................             19,000
        Surcharge....................................                170
    P. All other specific byproduct material                            
     licenses, except those in Categories 4A through                    
     9D..............................................              2,300
        Surcharge....................................                170
4. Waste disposal and processing:                                       
    A. Licenses specifically authorizing the receipt                    
     of waste byproduct material, source material, or                   
     special nuclear material from other persons for                    
     the purpose of contingency storage or commercial                   
     land disposal by the licensee; or licenses                         
     authorizing contingency storage of low-level                       
     radioactive waste at the site of nuclear power                     
     reactors; or licenses for receipt of waste from                    
     other persons for incineration or other                            
     treatment, packaging of resulting waste and                        
     residues, and transfer of packages to another                      
     person authorized to receive or dispose of waste                   
     material........................................         130,200\5\
        Surcharge....................................              1,670
    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             16,400
        Surcharge....................................              1,670
    C. Licenses specifically authorizing the receipt                    
     of prepackaged waste byproduct material, source                    
     material, or special nuclear material from other                   
     persons. The licensee will dispose of the                          
     material by transfer to another person                             
     authorized to receive or dispose of the material              7,500
        Surcharge....................................              1,670
    D. Licenses specifically authorizing the receipt,                   
     from other persons, of byproduct material as                       
     defined in Section 11.e.(2) of the Atomic Energy                   
     Act for possession and disposal except those                       
     licenses subject to the fees in Category 2.A.(2)              8,700
        Surcharge....................................              1,670
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..................................             12,700
        Surcharge....................................                170
    B. Licenses for possession and use of byproduct                     
     material for field flooding tracer studies......             15,400
    Surcharge........................................              1,670
6. Nuclear laundries:                                                   
    A. Licenses for commercial collection and laundry                   
     of items contaminated with byproduct material,                     
     source material, or special nuclear material....             15,600
        Surcharge....................................              1,670
7. Human use of byproduct, source, or special nuclear                   
 material:                                                              
    A. Licenses issued pursuant to parts 30, 35, 40,                    
     and 70 of this chapter for human use of                            
     byproduct material, source material, or special                    
     nuclear material in sealed sources contained in                    
     teletherapy devices. This category also includes                   
     the possession and use of source material for                      
     shielding when authorized on the same license...             16,900
        Surcharge....................................                170
    B. Licenses of broad scope issued to medical                        
     institutions or two or more physicians pursuant                    
     to parts 30, 33, 35, 40, and 70 of this chapter                    
     authorizing research and development, including                    
     human use of byproduct material except licenses                    
     for byproduct material, source material, or                        
     special nuclear material in sealed sources                         
     contained in teletherapy devices. This category                    
     also includes the possession and use of source                     
     material for shielding when authorized on the                      
     same license\9\.................................             30,900
        Surcharge....................................              1,670
    C. Other licenses issued pursuant to parts 30,                      
     35, 40, and 70 of this chapter for human use of                    
     byproduct material, source material, and/or                        
     special nuclear material except licenses for                       
     byproduct material, source material, or special                    
     nuclear material in sealed sources contained in                    
     teletherapy devices. This category also includes                   
     the possession and use of source material for                      
     shielding when authorized on the same license\9\              5,900
        Surcharge....................................                170
8. Civil defense:                                                       
    A. Licenses for possession and use of byproduct                     
     material, source material, or special nuclear                      
     material for civil defense activities...........              2,100
        Surcharge....................................                170
9. Device, product, or sealed source safety                             
 evaluation:                                                            
    A. Registrations issued for the safety evaluation                   
     of devices or products containing byproduct                        
     material, source material, or special nuclear                      
     material, except reactor fuel devices, for                         
     commercial distribution.........................              9,600
        Surcharge....................................                170
    B. Registrations issued for the safety evaluation                   
     of devices or products containing byproduct                        
     material, source material, or special nuclear                      
     material manufactured in accordance with the                       
     unique specifications of, and for use by, a                        
     single applicant, except reactor fuel devices...              4,900
        Surcharge....................................                170
    C. Registrations issued for the safety evaluation                   
     of sealed sources containing byproduct material,                   
     source material, or special nuclear material,                      
     except reactor fuel, for commercial distribution              2,100
        Surcharge....................................                170
    D. Registrations issued for the safety evaluation                   
     of sealed sources containing byproduct material,                   
     source material, or special nuclear material,                      
     manufactured in accordance with the unique                         
     specifications of, and for use by, a single                        
     applicant, except reactor fuel..................              1,000
        Surcharge....................................                170
10. Transportation of radioactive material:                             
    A. Certificates of Compliance or other package                      
     approvals issued for design of casks, packages,                    
     and shipping containers. Spent Fuel, High-Level                    
     Waste, and plutonium air packages...............             \6\N/A
    Other Casks......................................             \6\N/A
    B. Approvals issued of 10 CFR part 71 quality                       
     assurance programs.                                                
    Users and Fabricators............................             64,700
    Users............................................                900
        Surcharge....................................                170
11. Standardized spent fuel facilities...............             \6\N/A
12. Special Projects.................................             \6\N/A
13. A. Spent fuel storage cask Certificate of                           
 Compliance..........................................             \6\N/A
    B. General licenses for storage of spent fuel                       
     under 10 CFR 72.210.............................            363,500
        Surcharge....................................                170
14. Byproduct, source, or special nuclear material                      
 licenses and other approvals authorizing                               
 decommissioning, decontamination, reclamation, or                      
 site restoration activities pursuant to 10 CFR Parts                   
 30, 40, 70, and 72..................................             \7\N/A
15. Import and Export licenses.......................             \8\N/A
16. Reciprocity......................................             \8\N/A
17. Master materials licenses of broad scope issued                     
 to Government agencies..............................            430,500
        Surcharge....................................             22,970
18. Department of Energy:                                               
    a. Certificates of Compliance....................        \10\923,000
    b. Uranium Mill Tailing Radiation Control Act                       
     (UMTRCA) actions................................          1,449,000
        Surcharge....................................               170 
\1\Annual fees will be assessed based on whether a licensee holds a     
  valid license with the NRC which authorizes possession and use of     
  radioactive material. Annual fees for licenses terminated or          
  downgraded during the fiscal year and for new licenses issued or      
  licenses whose scope increased during the fiscal year will be prorated
  in accordance with the provisions of Sec. 171.17. If a person holds   
  more than one license, certificate, registration, or approval, the    
  annual fee(s) will be assessed for each license, certificate,         
  registration, or approval held by that person. For licenses that      
  authorize more than one activity on a single license (e.g., human use 
  and irradiator activities), annual fees will be assessed for each     
  category applicable to the license. Licensees paying annual fees under
  Category 1.A.(1). are not subject to the annual fees of category 1.C  
  and 1.D for sealed sources authorized in the license.                 
\2\Payment of the prescribed annual fee does not automatically renew the
  license, certificate, registration, or approval for which the fee is  
  paid. Renewal applications must be filed in accordance with the       
  requirements of parts 30, 40, 70, 71, or 72 of this chapter.          
\3\For FYs 1995 through 1998, fees for these materials licenses will be 
  calculated and assessed in accordance with Sec. 171.13 and will be    
  published in the Federal Register for notice and comment.             
\4\A Class I license includes mill licenses issued for the extraction of
  uranium from uranium ore. A Class II license includes solution mining 
  licenses (in-situ and heap leach) issued for the extraction of uranium
  from uranium ores including research and development licenses. An     
  ``other'' license includes licenses for extraction of metals, heavy   
  metals, and rare earths.                                              
\5\Two licenses have been issued by NRC for land disposal of special    
  nuclear material. Once NRC issues a LLW disposal license for byproduct
  and source material, the Commission will consider establishing an     
  annual fee for this type of license.                                  
\6\Standardized spent fuel facilities, part 71 and 72 Certificates of   
  Compliance, and special reviews, such as topical reports, are not     
  assessed an annual fee because the generic costs of regulating these  
  activities are primarily attributable to the users of the designs,    
  certificates, and topical reports.                                    
\7\Licensees in this category are not assessed an annual fee because    
  they are charged an annual fee in other categories while they are     
  licensed to operate.                                                  
\8\No annual fee is charged because it is not practical to administer   
  due to the relatively short life or temporary nature of the license.  
\9\Separate annual fees will not be assessed for pacemaker licenses     
  issued to medical institutions who also hold nuclear medicine licenses
  under Categories 7B or 7C.                                            
\10\This includes Certificates of Compliance issued to DOE that are not 
  under the Nuclear Waste Fund.                                         
\11\No annual fee has been established because there are currently no   
  licensees in this particular fee category.                            

    (e) A surcharge is proposed for each category, for which a base 
annual fee is required. The surcharge consists of the following:
    (1) To recover costs relating to LLW disposal generic activities, 
an additional charge of $55,600 has been added to fee Categories 
1.A.(1), 1.A.(2) and 2.A.(1); an additional charge of $1,500 has been 
added to fee Categories 1.B., 1.D., 2.C., 3.A., 3.B., 3.C., 3.L., 3.M., 
3.N., 4.A., 4.B., 4.C., 4.D., 5.B., 6.A., and 7.B.; and an additional 
charge of $22,800 has been added to fee Category 17.
    (2) To recoup those costs not recovered from small entities, an 
additional charge of $170 has been added to each fee Category, except 
Categories 1E, 10.A., 11., 12., 13.A., 14., 15. and 16., since there is 
no annual fee for these categories. Licensees who qualify as small 
entities under the provisions of Sec. 171.16(c) and who submit a 
completed NRC Form 526 are not subject to the $170 additional charge.
* * * * *
    10. Section 171.17 is revised to read as follows:


Sec. 171.17  Proration.

    Annual fees will be prorated for NRC licensees as follows:
    (a) Reactors. The annual fee for a reactor (power or nonpower) 
licensee that is subject to fees under this part that is granted a 
license to operate on or after October 1 of a FY is prorated on the 
basis of the number of days remaining in the FY. Thereafter, the full 
fee is due and payable each subsequent FY. Licensee who have requested 
amendment to withdraw operating authority permanently during the FY 
will be prorated based on the number of days during the FY the license 
was in effect before the possession only license was issued or the 
license was terminated.
    (b) Materials licenses. The annual fee for a materials license that 
is subject to fees under this part that is granted a license on or 
after October 1 of a FY is prorated on the basis of when the NRC issues 
the new license. New licenses issued during the period October 1 
through March 31 of the FY will be assessed one-half the annual fee for 
that FY. New licenses issued on or after April 1 of the FY will not be 
assessed an annual fee for that FY. Similarly, licenses amended during 
the period from October 1 through March 31 to increase the scope will 
be assessed one-half the annual fee for the new category(ies) for that 
FY. Licenses amended on or after April 1 to increase the scope of the 
license will not be assessed an annual fee for the new category(ies) 
for that FY. Thereafter, the full fee is due and payable each 
subsequent FY. Licenses that are downgraded or terminated after October 
1 of a FY will be prorated on the basis of when the application for 
downgrade or termination is filed with the NRC. Licenses for which 
applications for downgrade or termination are filed during the period 
October 1 through March 31 of the FY are assessed one-half the annual 
fee for the applicable category(ies) for that FY. Licenses for which 
applications for downgrade or termination are filed on or after April 1 
of the FY are assessed the full annual fee for that FY.
    11. In Sec. 171.19, paragraphs (b) and (c) are revised to read as 
follows:


Sec. 171.19  Payment.

* * * * *
    (b) For FY 1994 through FY 1998, the Commission will adjust the 
fourth quarterly bill for operating power reactors and certain 
materials licensees to recover the full amount of the revised annual 
fee. If the amounts collected in the first three quarters exceed the 
amount of the revised annual fee, the overpayment will be refunded. All 
other licensees, or holders of a certificate, registration, or approval 
of a QA program will be sent a bill for the full amount of the annual 
fee upon publication of the final rule. Payment is due on the effective 
date of the final rule and interest accrues from the effective date of 
the final rule. However, interest will be waived if payment is received 
within 30 days from the effective date of the final rule.
    (c) For FYs 1994 through 1998, annual fees in the amount of 
$100,000 or more and described in the Federal Register Notice pursuant 
to Sec. 171.13, must be paid in quarterly installments of 25 percent as 
billed by the NRC. The quarters begin on October 1, January 1, April 1, 
and July 1 of each fiscal year. Annual fees of less than $100,000 must 
be paid once a year as billed by the NRC.

    Dated at Rockville, Maryland, this 29th day of April, 1994.

    For the Nuclear Regulatory Commission.
James M. Taylor,
Executive Director for Operations.

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

I. Background

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.) 
establishes as a principle of regulatory practice that agencies 
endeavor to fit regulatory and informational requirements, consistent 
with applicable statutes, to a scale commensurate with the businesses, 
organizations, and government jurisdictions to which they apply. To 
achieve this principle, the Act requires that agencies consider the 
impact of their actions on small entities. If the agency cannot certify 
that a rule will not significantly impact a substantial number of small 
entities, then a regulatory flexibility analysis is required to examine 
the impacts on small entities and the alternatives to minimize these 
impacts.
    To assist in considering these impacts under the Regulatory 
Flexibility Act, the NRC adopted size standards for determining which 
NRC licensees qualify as small entities (50 FR 50241, December 9, 
1985). These size standards were clarified November 6, 1991 (56 FR 
56672). The NRC size standards are as follows:
    (1) A small business is a business with annual receipts of $3.5 
million or less except private practice physicians for which the 
standard is annual receipts of $1 million or less.
    (2) A small organization is a not-for-profit organization which is 
independently owned and operated and has annual receipts of $3.5 
million or less.
    (3) Small governmental jurisdictions are governments of cities, 
counties, towns, townships, villages, school districts, or special 
districts with a population of less than 50,000.
    (4) A small educational institution is one that is (1) supported by 
a qualifying small governmental jurisdiction, or (2) one that is not 
state or publicly supported and has 500 employees or less.
    Public Law 101-508, the Omnibus Budget Reconciliation Act of 1990 
(OBRA-90), requires that the NRC recover approximately 100 percent of 
its budget authority, less appropriations from the Nuclear Waste Fund, 
for Fiscal Years (FY) 1991 through 1995 by
assessing license and annual fees. OBRA-90 was amended in 1993 to 
extend the 100 percent recovery requirement for NRC through 1998. For 
FY 1991, the amount collected was approximately $445 million; for FY 
1992, approximately $492.5 million; for FY 1993 about $518.9 million 
and the amount to be collected in FY 1994 is approximately $513 
million.
    To comply with OBRA-90, the Commission amended its fee regulations 
in 10 CFR parts 170 and 171 in FY 1991 (56 FR 31472; July 10, 1991) in 
FY 1992, (57 FR 32691; July 23, 1992) and in FY 1993 (58 FR 38666; July 
20, 1993) based on a careful evaluation of over 1,000 comments. These 
final rules established the methodology used by NRC in identifying and 
determining the fees assessed and collected in FY 1991, FY 1992, and FY 
1993. The NRC has used the same methodology established in the FY 1991, 
FY 1992, and FY 1993 rulemakings to establish the proposed fees to be 
assessed for FY 1994. The methodology for assessing low-level waste 
(LLW) costs was changed in FY 1993 based on the U.S. Court of Appeals 
decision dated March 16, 1993 (988 F.2d 146, D.C. Cir. 1993). The FY 
1993 LLW allocation method has been continued in the FY 1994 proposed 
rule.

II. Impact On Small Entities

    The comments received on the proposed FY 1991, FY 1992, and FY 1993 
fee rule revisions and the small entity certifications received in 
response to the final FY 1991, FY 1992, and FY 1993 fee rules indicate 
that NRC licensees qualifying as small entities under the NRC's size 
standards are primarily those licensed under the NRC's materials 
program. Therefore, this analysis will focus on the economic impact of 
the annual fees on materials licensees.
    The Commission's fee regulations result in substantial fees being 
charged to those individuals, organizations, and companies that are 
licensed under the NRC materials program. Of these materials licensees, 
the NRC estimates that about 18 percent (approximately 1,300 licensees) 
qualify as small entities. This estimate is based on the number of 
small entity certifications filed in response to the FY 1991, FY 1992, 
and FY 1993 fee rules. In FY 1993, the NRC conducted a survey of its 
materials licensees. The results of this survey indicated that about 25 
percent of these licensees could qualify as small entities under the 
current NRC size standards.
    The commenters on the FY 1991, FY 1992, and FY 1993 proposed fee 
rules indicated the following results if the proposed annual fees were 
not modified:

--Large firms would gain an unfair competitive advantage over small 
entities. One commenter noted that a small well-logging company (a 
``Mom and Pop'' type of operation) would find it difficult to absorb 
the annual fee, while a large corporation would find it easier. Another 
commenter noted that the fee increase could be more easily absorbed by 
a high-volume nuclear medicine clinic. A gauge licensee noted that, in 
the very competitive soils testing market, the annual fees would put it 
at an extreme disadvantage with its much larger competitors because the 
proposed fees would be the same for a two-person licensee as for a 
large firm with thousands of employees.
--Some firms would be forced to cancel their licenses. One commenter, 
with receipts of less than $500,000 per year, stated that the proposed 
rule would, in effect, force it to relinquish its soil density gauge 
and license, thereby reducing its ability to do its work effectively. 
Another commenter noted that the rule would force the company and many 
other small businesses to get rid of the materials license altogether. 
Commenters stated that the proposed rule would result in about 10 
percent of the well logging licensees terminating their licenses 
immediately and approximately 25 percent terminating their licenses 
before the next annual assessment.
--Some companies would go out of business. One commenter noted that the 
proposal would put it, and several other small companies, out of 
business or, at the very least, make it hard to survive.
--Some companies would have budget problems. Many medical licensees 
commented that, in these times of slashed reimbursements, the proposed 
increase of the existing fees and the introduction of additional fees 
would significantly affect their budgets. Another noted that, in view 
of the cuts by Medicare and other third party carriers, the fees would 
produce a hardship and some facilities would experience a great deal of 
difficulty in meeting this additional burden.

    Over the past three years, approximately 2,600 license, approval, 
and registration terminations have been requested. Although some of 
these terminations were requested because the license was no longer 
needed or licenses or registrations could be combined, indications are 
that other termination requests were due to the economic impact of the 
fees.
    The NRC continues to receive written and oral comments from small 
materials licensees. These comments indicate that the $3.5 million 
threshold for small entities is not representative of small businesses 
with gross receipts in the thousands of dollars. These commenters 
believe that the $1,800 maximum annual fee represents a relatively high 
percentage of gross annual receipts for these ``Mom and Pop'' type 
businesses. Therefore, even the reduced annual fee could have a 
significant impact on the ability of these types of businesses to 
continue to operate.
    To alleviate the continuing significant impact of the annual fees 
on a substantial number of small entities, the NRC considered 
alternatives, in accordance with the RFA. These alternatives were 
evaluated in the FY 1991 rule (56 FR 31472, July 10, 1991) in the FY 
1992 rule (57 FR 32691, July 23, 1992 and in the FY 1993 rule (58 FR 
38666, July 20, 1993). The alternatives considered by the NRC can be 
summarized as follows.

--Base fees on some measure of the amount of radioactivity possessed by 
the licensee (e.g., number of sources).
--Base fees on the frequency of use of the licensed radioactive 
material (e.g., volume of patients).
--Base fees on the NRC size standards for small entities.

    The NRC has reexamined the FY 1991, FY 1992, and FY 1993 evaluation 
of the these alternatives. Based on that reexamination, the NRC 
continues to support the previous conclusion. That is, the NRC 
continues to believe that establishment of a maximum fee for small 
entities is the most appropriate option to reduce the impact on small 
entities.
    The NRC established, and is proposing to continue for FY 1993, a 
maximum annual fee for small entities. The RFA and its implementing 
guidance do not provide specific guidelines on what constitutes a 
significant economic impact on a small entity. Therefore, the NRC has 
no benchmark to assist it in determining the amount or the percent of 
gross receipts that should be charged to a small entity. For FY 1994, 
the NRC proposes to rely on the analysis previously completed that 
established a maximum annual fee for a small entity by comparing NRC 
license and inspection fees under 10 CFR Part 170 with Agreement State 
fees for those fee categories that are expected to have a substantial 
number of small entities. Because these fees have been charged to small 
entities, the NRC continues to believe that these fees, or any 
adjustments to these fees during the past year, do not have a 
significant impact on them. In issuing this proposed rule for FY 1994, 
the NRC concludes that the proposed materials license and inspection 
fees do not have a significant impact on a substantial number of small 
entities and that the maximum small entity fee of $1,800 be maintained 
to alleviate the impact of the fees on small entities.
    By maintaining the maximum annual fee for small entities at $1,800, 
the annual fee for many small entities will be reduced while at the 
same time materials licensees, including small entities, pay for most 
of the FY 1994 costs ($33.3 million of the total $38.6 million) 
attributable to them. Therefore, the NRC is proposing to continue, for 
FY 1994, the maximum annual fee (base annual fee plus surcharge) for 
certain small entities at $1,800 for each fee category covered by each 
license issued to a small entity. Note that the costs not recovered 
from small entities are allocated to other materials licensees and to 
operating power reactors.
    While reducing the impact on many small entities, the Commission 
agrees that the current maximum annual fee of $1,800 for small 
entities, when added to the part 170 license and inspection fees, may 
continue to have a significant impact on materials licensees with 
annual gross receipts in the thousands of dollars. Therefore, as in FY 
1992 and FY 1993, the NRC will continue the lower-tier small entity fee 
of $400 for small entities with relatively low gross annual receipts 
for FY 1994. This lower-tier small entity fee was established in the 
final rule published in the Federal Register of April 17, 1992 (57 FR 
13625).
    In establishing the annual fee for lower tier small entities, the 
NRC continues to retain a balance between the objectives of the RFA and 
OBRA-90. This balance can be measured by (1) the amount of costs 
attributable to small entities that is transferred to larger entities 
(the small entity subsidy); (2) the total annual fee small entities 
pay, relative to this subsidy; and (3) how much the annual fee is for a 
lower tier small entity. Nuclear gauge users were used to measure the 
reduction in fees because they represent about 40 percent of the 
materials licensees and most likely would include a larger percentage 
of lower tier small entities than would other classes of materials 
licensees. The Commission is continuing an annual fee of $400 for the 
lower tier small entities to ensure that the lower tier small entities 
receive a reduction (75 percent for small gauge users) substantial 
enough to mitigate any severe impact. Although other reduced fees would 
result in lower subsidies, the Commission believes that the amount of 
the associated annual fees, when added to the license and inspection 
fees, would still be considerable for small businesses and 
organizations with gross receipts of less than $250,000 or for 
governmental entities in jurisdictions with a population of less than 
20,000.

III. Summary

    The NRC has determined the annual fee significantly impacts a 
substantial number of small entities. A maximum fee for small entities 
strikes a balance between the requirement to collect 100 percent of the 
NRC budget and the requirement to consider means of reducing the impact 
of the proposed fee on small entities. On the basis of its regulatory 
flexibility analyses, the NRC concludes that a maximum annual fee of 
$1,800 for small entities and a lower tier small entity annual fee of 
$400 for small businesses and non-profit organizations with gross 
annual receipts of less than $250,000, and small governmental entities 
with a population of less than 20,000, will reduce the impact on small 
entities. At the same time, these reduced annual fees are consistent 
with the objectives of OBRA-90. Thus, the revised fees for small 
entities maintain a balance between the objectives of OBRA-90 and the 
RFA. The NRC has used the methodology and procedures developed for the 
FY 1991, the FY 1992, and the FY 1993 fee rules in this proposed rule 
establishing the FY 1994 fees. Therefore, the analysis and conclusions 
established in the FY 1991, the FY 1992, and the FY 1993 rules remain 
valid for this proposed rule for FY 1994.

[FR Doc. 94-10916 Filed 5-9-94; 8:45 am]
BILLING CODE 7590-01-P