[Federal Register Volume 61, Number 72 (Friday, April 12, 1996)]
[Rules and Regulations]
[Pages 16203-16226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9026]



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  Federal Register / Vol. 61, No. 72 / Friday, April 12, 1996 / Rules 
and Regulations  

[[Page 16203]]



NUCLEAR REGULATORY COMMISSION

10 CFR Parts 170 and 171

RIN 3150-AF39


Revision of Fee Schedules; 100% Fee Recovery, FY 1996

AGENCY: Nuclear Regulatory Commission.

ACTION: Final rule.

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

SUMMARY: The Nuclear Regulatory Commission (NRC) is amending the 
licensing, inspection, and annual fees charged to its applicants and 
licensees. The amendments are necessary to implement the Omnibus Budget 
Reconciliation Act of 1990 (OBRA-90), which mandates that the NRC 
recover approximately 100 percent of its budget authority in Fiscal 
Year (FY) 1996 less amounts appropriated from the Nuclear Waste Fund 
(NWF). The amount to be recovered for FY 1996 is approximately $462.3 
million.

EFFECTIVE DATE: June 11, 1996.

ADDRESSES: Copies of comments received and the agency workpapers that 
support these final 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 20555-0001.

FOR FURTHER INFORMATION CONTACT: C. James Holloway, Jr., Office of the 
Controller, U.S. Nuclear Regulatory Commission, Washington, DC 20555-
0001, Telephone 301-415-6213.

SUPPLEMENTARY INFORMATION:

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

I. Background

    Public Law 101-508, the Omnibus Budget Reconciliation Act of 1990 
(OBRA-90), enacted November 5, 1990, requires that the NRC recover 
approximately 100 percent of its budget authority, less the amount 
appropriated from the Department of Energy (DOE) administered NWF, for 
FYs 1991 through 1995 by assessing fees. OBRA-90 was amended in 1993 to 
extend the NRC's 100 percent fee recovery requirement through FY 1998.
    The NRC assesses two types of fees to recover its budget authority. 
First, license and inspection fees, established 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. Examples of the services provided by the NRC for which these 
fees are assessed are the review of applications for the issuance of 
new licenses, approvals or renewals, and amendments to licenses or 
approvals. Second, annual fees, established in 10 CFR Part 171 under 
the authority of OBRA-90, recover generic and other regulatory costs 
not recovered through 10 CFR Part 170 fees.
    On June 20, 1995 (60 FR 32218), the NRC published its final rule 
establishing the licensing, inspection, and annual fees necessary for 
the NRC to recover approximately 100 percent of its budget authority 
for FY 1995, less the appropriation received from the Nuclear Waste 
Fund. The NRC stated in the FY 1995 final rule that in an effort to 
stabilize annual fees, beginning in FY 1996, the NRC would adjust the 
annual fees by the percentage change (plus or minus) in NRC's total 
budget authority unless there was a substantial change in the total NRC 
budget authority or the magnitude of the budget allocated to a specific 
class of licensees, in which case the annual fee base would be 
recalculated (60 FR 32225; June 20, 1995). The NRC also stated that the 
percentage change would be adjusted based on changes in the 10 CFR Part 
170 fees and other receipts as well as on the number of licensees 
paying fees.
    On January 30, 1996 (61 FR 2948), the NRC published a proposed rule 
to establish the licensing, inspection, and annual fees necessary for 
the NRC to recover approximately 100 percent of its budget authority 
for FY 1996, less the appropriation received from the Nuclear Waste 
Fund. Several changes were proposed by the NRC to the fees to be 
assessed for FY 1996. These changes were highlighted in the proposed 
rule (61 FR 2948; January 30, 1996). The major changes are summarized 
as follows:
    1. Stabilize 10 CFR Part 171 annual fees by adjusting all annual 
fees downward by about 6 percent. This change is consistent with the 
NRC's intention, stated in the FY 1995 final rule, that annual fees 
would be stabilized, beginning in FY 1996, by adjusting the FY 1995 
annual fees by the percent change (plus or minus) in the NRC budget 
authority taking into consideration the estimated collections from 10 
CFR Part 170 fees and the number of licensees paying fees;
    2. Assess 10 CFR Part 171 annual fees of less than $100,000 to 
materials licensees on the anniversary date of the license. This change 
continues the streamlining of fees and allows the NRC to make the 
billing process more efficient by distributing the billing and 
collection of annual fees over the entire year. The current practice is 
to bill over 6,000 materials licensees at the same time during the 
fiscal year;
    3. Eliminate the materials ``flat'' renewal fees in 10 CFR 170.31 
and include the costs of the renewals in the annual fees in 10 CFR 
171.16(d) for the affected licensees. This change continues the 
simplification of fees initiated in FY 1995 and is consistent with 
NRC's recent Business Process Reengineering initiatives to extend the 
duration of certain materials licenses (61 FR 1109; January 16, 1996);
    4. Revise the two professional hourly rates in 10 CFR 170.20 which 
are used to determine the Part 170 fees assessed by the NRC. The rate 
for FY 1996 for the reactor program is $128 per hour and the rate for 
the materials program is $120 per hour; and
    5. Adjust the 10 CFR 170.21 and 170.31 licensing (application and 
amendment) ``flat'' fees for materials licenses to reflect the costs of 
providing the licensing services.

II. Responses to Comments

    The NRC received eight comments on the proposed rule. Although the 
comment period ended on February 29, 1996, the NRC has reviewed and

[[Page 16204]]

evaluated all comments received, including those that were late.
    Many of the comments were similar in nature. For evaluation 
purposes, these comments have been grouped, as appropriate, and 
addressed as single issues in this final rule. The comments are as 
follows:

A. Comments Regarding the Major Changes Proposed in the FY 1996 Fee 
Rule

1. Streamline and Stabilize Annual Fees
    Comment. All commenters responding to this proposed change were 
encouraged by and supported the positive steps taken by NRC to 
equitably distribute and to reduce the burden of user fees on 
licensees. Several commenters indicated that this change represents a 
greater simplification and streamlining of the fee setting procedures 
and has eliminated the dramatic swings in NRC fees seen in the past. 
Commenters stated that the approximate 6 percent reduction in annual 
fees for all licensees is evidence of this. Other commenters stated 
that the NRC should continue the process of streamlining and 
commensurate fee reduction because it is a responsible approach in 
light of today's highly competitive global nuclear marketplace.
    Response. Consistent with the comments, the final rule adopts the 
methodology to streamline and stabilize FY 1996 annual fees by 
adjusting these fees by the percentage change (plus or minus) in NRC's 
total budget authority. The FY 1995 annual fees have been used as base 
annual fees and these annual fees have been adjusted downward for FY 
1996 based on the percentage change in the NRC's budget authority, 
taking into consideration the total number of licensees paying fees and 
estimated collections from 10 CFR Part 170 licensing and inspection 
fees. Therefore for FY 1996, all annual fees have been adjusted 6.5 
percent below the FY 1995 levels.
2. Assess Annual Fees of Less Than $100,000 to Materials Licenses on 
the Anniversary Date of License
    Comment. Commenters supported the NRC's proposal to invoice 
materials annual fees of less than $100,000 on the anniversary date of 
the license. Commenters stated that, while helping to assist NRC in its 
billing efforts, it will also provide some relief to entities who have 
several licenses. The proposed system will allow these licensees to 
distribute their cash outlays over a longer period of time easing the 
financial stresses caused by a single payment period.
    Response. Consistent with the comments, the NRC in this final rule 
will assess Sec. 171.16(d) annual fees for those materials licenses 
whose annual fees are less than $100,000 based on the anniversary of 
the date the license was originally issued. Accordingly, a new 
paragraph is added to Sec. 171.19. For FY 1996, those affected 
materials licenses with a license anniversary date between October 1, 
1995, and the effective date of this final FY 1996 fee rule will be 
billed upon publication of the final rule in the Federal Register and 
annually thereafter during the anniversary month of the license. Those 
affected materials licenses whose license anniversary date is on or 
after the effective date of this final FY 1996 fee rule will be billed 
during the anniversary month of the license and annually thereafter 
based on the annual fee in effect at the time of billing. The specific 
license categories of materials licensees affected by this change are 
listed in Sec. 171.19(d) of this final rule.
3. Revise the Two Professional Rates in 10 CFR 170.20 Based on the FY 
1996 Budget and Adjust the 10 CFR 170.21 and 170.31 Licensing 
(Application and Amendment) ``Flat'' Fees for Licenses to Reflect the 
Costs of Providing the Licensing Services
    Comment. Commenters supported the revised method of calculating two 
hourly rates adopted by NRC in FY 1995 to separately, and more 
equitably, allocate costs associated with the reactor program and the 
materials program. Commenters stated that the two rates, based on cost 
center concepts that identify and allocate budgeted resources, is 
inherently fairer and more equitable to licensees and is more 
consistent with Congressional intent to identify and properly assess 
fees to those entities that utilize NRC resources and regulatory 
services. However, some commenters indicated that, while they are 
pleased that the materials rate increase is under 4 percent ($116 per 
hour to $120 per hour) and generally in keeping with inflation, the 
rate itself is unjustifiably high. These commenters stated that the 
$120 hourly rate equals or exceeds the hourly rate of senior 
consultants or principals at major (national) consulting companies and 
that it exceeds the accepted rate for similar work in private industry. 
Some commenters pointed out the increase in the hourly rates exceeds 
the general increase that was provided to all Federal government 
workers on January 1, 1996, and they encourage the NRC to control its 
costs by seeking efficiencies in order to attain a downward trend of 
licensing and inspection fees comparable to that being realized in the 
annual fees. Other commenters indicated that the average cost per staff 
hour assumes a lower number of work hours relative to that commonly 
applied in industry and a multiplier which would appear to 
significantly exceed those commonly enjoyed by private industry. Some 
commenters stated that although summary calculations are presented in 
the proposed revisions, insufficient detail is provided to determine 
the justification for an increase in the hourly fees, i.e., the NRC has 
not listed the assumptions used in forecasting the predicted FTEs (full 
time equivalents) considered necessary for the materials program.
    Response. Consistent with the comments, the NRC has established in 
this final rule two professional hourly rates for FY 1996 which will be 
used to determine the 10 CFR Part 170 fees. A rate of $128 per hour is 
established in Sec. 170.20 for the reactor program and a second rate of 
$120 per hour is established in Sec. 170.20 for the nuclear materials 
and nuclear waste programs. The two rates are based on the ``cost 
center'' concept that is now being used for budgeting purposes.
    The NRC professional hourly rates are established to recover 
approximately 100 percent of the agency's Congressionally-approved 
budget, less the appropriation from the Nuclear Waste Fund (NWF), as 
required by OBRA-90. The rates reflect the NRC budgeted cost per direct 
professional hour. This cost includes the salary and benefits for the 
direct hours, and a prorata share of the salary and benefits for the 
program and agency overhead and agency general and administrative 
expenses (e.g., rent, supplies, and information technology). Both the 
method and budgeted costs used by the NRC in the development of the 
hourly rates of $128 and $120 are discussed in detail in Part III, 
Section-by-Section Analysis, relating to Sec. 170.20 of the proposed 
rule (61 FR 2951; January 30, 1996) and the same section of this final 
rule. For example, Table II shows the budgeted costs and the direct 
FTEs that must be recovered through fees assessed for the hours 
expended by the direct FTEs. The budgeted costs as well as the direct 
resources are those required by the NRC to implement its statutory 
responsibilities and effectively accomplish the mission of the agency. 
Additional information on the hourly rates is provided in the NRC 
workpapers located in the Public Document Room. The specific details 
regarding the budget for FY 1996 are documented in the NRC's 
publication ``Budget Estimates, Fiscal Years 1996-1997'' (NUREG-1100,

[[Page 16205]]

Volume 11), which is available to the public. Copies of NUREG-1100, 
Volume 11, may be purchased from the Superintendent of Documents, U.S. 
Government Printing Office, P.O. Box 37082, Washington, DC 20402-9328. 
Copies are also available from the National Technical Information 
Service, 5285 Port Royal Road, Springfield, VA 22161. A copy is also 
available for inspection and copying for a fee in the NRC Public 
Document Room, 2120 L Street NW. (Lower Level), Washington, DC 20555-
0001.

B. Other Comments

1. Public Interest Exemptions
    Comment. Commenters supported NRC's decision to continue to charge 
annual fees to Federal agencies and to deny their requests for 
exemption based on ``public good'' claims.
    Response. Consistent with the proposed rule and the comments 
received, the NRC does not intend to grant public good exemptions to 
Federal agencies.
2. Fee Legislation
    Comment. Several commenters noted that the NRC had completed its 
report on fee policy as required by the Energy Policy Act of 1992 and 
that the NRC had sent a report to Congress with legislative 
recommendations. The commenters commended NRC's efforts in this regard 
and stated that they continue to believe that 100 percent fee recovery 
for NRC, as mandated by OBRA-90, is inequitable and unfair to licensees 
because licensees are paying for certain costs that are not directly 
related to and do not benefit them. The commenters acknowledged that 
without legislative changes to OBRA-90, the central problems with NRC's 
fees cannot be completely resolved. Commenters strongly supported more 
efforts to define a more equitable fee base and recommended that the 
NRC continue to work with Congress and the Administration to obtain the 
necessary legislative changes. In this regard, commenters stated that 
it is time for NRC to actively pursue a legislative agenda with 
Congress by drafting specific language to modify OBRA-90 or the Atomic 
Energy Act.
    Response. The need for legislation is beyond the scope of this 
rulemaking proceeding. As indicated in the FY 1995 final rule (60 FR 
32218; June 20, 1995), the NRC will continue to work with the Congress 
to make fees more fair and equitable.
3. Reexamine the Issue of Fees
    Comment. Some commenters stated that both Congress and the NRC 
should reexamine the whole issue of fees in the context of the 
substantial concerns of licensees regarding the trend of more states 
entering into the Agreement State program. These commenters refer to 
the stated intentions of Pennsylvania, Ohio, Massachusetts, and 
Oklahoma to become Agreement States. The commenters indicated that the 
NRC would then lose about 30 percent of the existing license base and 
fees would significantly increase unless other budgeting methods are 
approved or the number of FTEs is reduced in proportion to the 
reduction in the number of licenses.
    Commenters from the uranium recovery industry also indicated that, 
as the uranium recovery industry continues to shrink in size, the 
decreasing number of licensees will ultimately be charged increasing 
annual fees thereby forcing more financial hardships on an already 
depressed industry. Commenters state that the current system gives 
preferential treatment to licensees in Agreement States. One commenter 
suggested that the NRC should enter into reimbursable agreements with 
the Agreement States before FY 1997, as stated in the FY 1995 final 
rule. In addition, one commenter believes that NRC should assess the 
Environmental Protection Agency (EPA) for NRC work such as review of 
regulations promulgated by EPA relating to radionuclide emission 
standards.
    Response. In FY 1995, the NRC changed the methodology for 
allocating those budgeted costs (about 10 percent of the NRC budget 
authority) that cause fairness and equity concerns because the 
legislation requested by the NRC had not been passed by the Congress 
(60 FR 32218; June 20, 1995). These costs, which include the cost of 
the Agreement State oversight and regulatory support to the Agreement 
States, are now treated in a manner similar to overhead. These costs 
are distributed based on the percentage of the budget directly 
attributable to a class of licensees. Commenters at that time supported 
this method of allocation as being more equitable, pending legislative 
relief by Congress to remedy this inequitable situation. If additional 
states become Agreement States and the NRC decides to rebaseline the 
fees based on substantive changes to the budget, then any increased 
cost for Agreement State oversight and regulatory support to the 
Agreement States would be identified, treated similar to overhead, and 
distributed based on the percentage of the budget directly attributable 
to a class of licensees.
    The NRC also revised its methodologies in the FY 1995 final rule 
for determining annual fees for fuel facility and uranium recovery 
licensees. The revised methodologies resulted in annual fees that more 
accurately reflect the costs of providing regulatory services to the 
subclasses of fuel facility and uranium recovery licensees. The revised 
methodologies were fully explained in Section IV, Section-by-Section 
Analysis, of the final FY 1995 rule (60 FR 32218; June 20, 1995).
    In response to comments relative to annual fee increases as a 
result of the decrease in the number of licensees, the changes adopted 
in the FY 1995 final rule to stabilize fees should minimize large fee 
changes as a result of decreases in licensees. This is substantiated by 
this final FY 1996 rule which reduces all annual fees by the percent 
change to the FY 1995 levels.
    The NRC indicated in the FY 1995 proposed rule (60 FR 14672; March 
20, 1995) that it planned to increase the use of reimbursable 
agreements with Agreement States and Federal agencies beginning in FY 
1997. To this end, the NRC has begun this process for Federal agencies. 
For example, in FY 1995 the NRC entered into reimbursable agreements 
with the National Aeronautics and Space Administration (NASA) for the 
Cassini mission and the Department of Energy (DOE) for plutonium 
disposition. Reimbursable agreements with Agreement States, however, 
continue to generate strong responses, both positive and negative, on 
the part of licensees and Agreement States.
    With respect to the interaction between the NRC and EPA on the 
promulgation of regulations, NRC interactions with EPA are an integral 
part of NRC's responsibilities under the Atomic Energy Act. Therefore, 
NRC must include the costs of this work in its budget and cannot 
perform such work under reimbursable agreements. In addition, the 
Independent Offices Appropriation Act of 1952, as amended, precludes 
the NRC from charging fees to Federal agencies for specific services 
rendered. While the NRC can assess annual fees to Federal agencies 
holding NRC licenses, the EPA is not considered a licensee of the NRC 
with respect to regulations promulgated by EPA relating to radionuclide 
emission standards.
4. Fees Based on Other Factors
    Comment. One commenter indicated that NRC fees should take into 
consideration the competitive condition of certain markets and the 
effect of fees on domestic and foreign competition. For example, the 
commenter suggested that the NRC assess a small fee, such as $5.00 per 
pound, on imported uranium

[[Page 16206]]

to help offset the NRC budget and that OBRA-90 be amended to include 
this provision. In addition, the commenter suggested that a fee be 
added to foreign Separative Work Units (SWUs) used by U.S. utilities to 
enrich uranium. The commenter indicated that these fees, if levied, 
would not only solve part of the NRC's financing problems, but would 
also ``rejuvenate the domestic uranium mining, milling, and enrichment 
businesses.'' Another commenter believes that NRC should give full 
consideration to the effects of imposing significant annual fees on the 
domestic uranium recovery industry particularly in light of the 
Secretary of Energy's determination that the industry is non-viable and 
the requirement of the Atomic Energy Act that the country maintain a 
viable domestic source material industry to sustain vital national 
interests.
    Response. OBRA-90 requires that the fees assessed to licensees have 
a reasonable relationship, to the maximum extent practicable, to the 
cost of providing the service. The IOAA requires that licensing fees be 
based on the cost of the services rendered. Consistent with these 
requirements, the NRC assesses licensing fees for import licenses. 
Basing fees on market competitive positions or assessing a $5.00 per 
pound surcharge on imported uranium would not be consistent with these 
statutes. The issue of adverse economic impact of fees on NRC licensees 
was addressed in the FY 1991 final rule published July 10, 1991 (56 FR 
31476). The NRC indicated that there will be adverse impacts from 
implementing the legislation and to eliminate the adverse effects, the 
annual fees would have to be eliminated or reduced. The issues of 
basing fees on market competitive positions, the amount of material 
possessed, the frequency of use of the material, and the size of the 
facilities, were also addressed by the NRC in previous rules and in the 
Regulatory Flexibility Analysis in Appendix A to the final rule 
published July 10, 1991 (56 FR 31511-31513). The NRC did not adopt that 
approach because it would require licensees to submit large amounts of 
new data and would require additional NRC staff to evaluate the data 
submitted and to develop and administer even more complex fee 
schedules. The NRC continues to believe that uniformly allocating the 
generic and other regulatory costs to the specific licensee within a 
class to determine the amount of the annual fee is a fair, equitable, 
and practical way to recover those costs and that establishing reduced 
annual fees based on gross receipts (size) is the most appropriate 
approach to minimize the impact on small entities. Therefore, the NRC 
finds no basis for altering its approach at this time. This approach 
was upheld by the D.C. Circuit in its March 16, 1993 decision in 
Allied-Signal.
5. Comment
    Several comments were received from uranium recovery licensees 
suggesting: (1) A tiered fee system that would result in full fees for 
operating facilities and reduced fees for facilities in shutdown or 
standby status; (2) a licensee review board be established to review 
NRC fees annually; (3) the NRC establish standards for its activities, 
such as a schedule for response intervals for processing licensing 
actions; and (4) 10 CFR Part 170 bills for services rendered be 
itemized to show hours spent, a description of the work performed, the 
names of individuals who completed the work and the dates the work was 
performed.
    Response. In response to a petition of rulemaking from the American 
Mining Congress (now the National Mining Association) the NRC addressed 
each of these comments in the Federal Register on April 28, 1995 (60 FR 
20918-20922). For the reasons provided in response to the petition, the 
NRC is not adopting the suggestions from the commenters in this final 
rule. While denying the petition, the NRC noted that it would continue 
its current practice of providing available backup data to support 10 
CFR Part 170 licensing and inspection billings upon request by the 
licensee or applicant.
6. Relationship Between Fees and Regulatory Services
    Comment. Several commenters indicated that although they appreciate 
NRC's efforts to stabilize fees, they have concerns about the lack of a 
reasonable relationship between the cost to uranium recovery licensees 
of NRC's regulatory program and the benefit derived from such services. 
The commenters assert that the Commission cannot impose fees under the 
IOAA unless there is a rational relationship between the fees and the 
regulatory services provided. The commenters, citing Central & S. Motor 
Freight Tariff Ass'n v. United States, 777 F.2d 722, 729 (D.C. Cir. 
1985), note that in applying this IOAA requirement, the fees assessed 
must be reasonably related to, and may not exceed the value of the 
service to the recipient whatever the agency's cost may be. The 
commenters then suggest that the NRC fee system may violate this 
principle because the proposed hourly rate of $120 for services 
provided by agency professionals is unduly high.
    Response. The Commission believes that its IOAA fee schedule is 
fully supported by applicable legal precedent and does not adopt 
commenters' suggestion. In upholding the Commission's IOAA fee 
schedule, the United States Court of Appeals for the Fifth Circuit held 
that the NRC may recover the full cost of providing a service to an 
identifiable recipient. (Emphasis in original) Mississippi Power & 
Light v. NRC, 601 F.2d at 230. This is consistent with the earlier 
teaching of National Cable Television Ass'n Inc. v. FCC, 554 F.2d 1094, 
1106 (D.C. 1976) relied upon by the court in Central & S Motor Freight 
Tariff Ass'n, supra. There the court held that fees should be a 
reasonable approximation of the attributable costs which the Commission 
identifies as being expended to benefit the recipient. The Court 
suggested that a fee might be questionable if the fee unreasonably 
exceeds the value of the specific services for which it is charged. 
Here the services provided by the NRC are required for licensees to 
maintain their licenses and the benefits derived therefrom. The basis 
for the revised hourly rates is fully discussed in NRC's response to 
comment A.3. which relate to the hourly rates being assessed by NRC 
under 10 CFR Part 170. The commenters have provided virtually no 
evidence that could cause the NRC to conclude that its fees 
unreasonably exceed the value of the services rendered.
7. Competitive Bids by Contractors
    Comment. Two commenters indicated that to control costs government 
agencies routinely require competitive bids for contract labor. The 
commenters stated that costs incurred by the Oak Ridge National 
Laboratory (ORNL) are considered by many licensees to be excessive, yet 
NRC awards contracts to ORNL on an apparently sole source basis. The 
commenters suggest that NRC consider as large a pool as possible for 
potential contractors including both government laboratories and 
private consultants when seeking contract labor.
    Response. The NRC is committed to making its regulatory programs 
more efficient and effective wherever it can do so without diminishing 
its ability to protect the public health and safety. The NRC follows 
accepted contracting practices in all contract awards. Before 
determining whether to place work with a commercial source under the 
competitive proposal process or with a DOE laboratory, the NRC 
considers the

[[Page 16207]]

type of work to be done, the expertise required, and the past 
performance of the contractor. If the NRC determines that commercial 
sources are appropriate to perform the work and that conflict of 
interest can be avoided, a competitive procurement may be initiated. 
Otherwise, a DOE laboratory may be selected to perform the work. Costs 
are routinely considered and negotiated in either case.
    Costs for particular actions are also affected by the quality of 
the licensee submittal, the timeliness and quality of licensees 
responses to NRC questions, delays caused by external factors, the 
complexity of the site, and the degree of cooperation by the licensee 
with NRC.
8. Regulatory Deficiencies
    Comment. Two commenters indicated that the proposed rule has no 
provision for allowing licensees to object to unreasonable costs. The 
commenters stated that without such a mechanism, licensees are at the 
mercy of the regulators and are expected to pay for services billed and 
that there is no assurance that any given regulatory function performed 
by the NRC will be completed expeditiously, efficiently, or within a 
reasonable range of cost.
    Response. While the NRC is committed to the expeditious review of 
each application and uses all reasonable means of keeping costs as low 
as feasible, its responsibility for ensuring the public health and 
safety and environmental protection cannot be compromised. The NRC is 
committed to the effective use of its increasingly limited resources 
and therefore cannot afford to use these resources unwisely if it is to 
successfully perform its mission. 10 CFR Part 170.51 of the 
Commission's regulations provides the mechanism whereby licensees are 
allowed to dispute a debt if they believe the debt is incorrect. 
Disputed debts must be submitted in accordance with the provisions of 
10 CFR Part 15.31 ``Disputed Debts.''
9. Fee Deferral Policy for Standard Plant and Early Site Reviews
    Comment. One commenter urged the NRC to reestablish the NRC's 
previous fee deferral policy for standard plant and early site reviews 
in order to encourage the development of standardized designs and in 
light of the NRC decision to issue designs to be certified through 
rulemaking rather than by granting a license for the certified design.
    Response. The NRC addressed this issue in the FY 1995 final rule 
(60 FR 32222; June 20, 1995), indicating that the Commission decided in 
its FY 1991 final fee rule that the costs for standardized reactor 
design reviews, whether for domestic or foreign applicants, should be 
assessed under 10 CFR Part 170 to those filing an application with the 
NRC for approval or certification of a standardized design (56 FR 
31478; July 10, 1991). The Commission revisited this issue as part of 
its review of fee policy required by the Energy Policy Act of 1992 
(EPA-92) and reconfirmed its FY 1991 decision. The NRC continues to 
believe that the costs of these reviews should be assessed to advanced 
reactor applicants. The NRC finds no compelling justification for 
singling out these types of applications for special treatment and 
shifting additional costs to operating power reactors or other NRC 
licensees, and does not believe the points made by the commenter are 
sufficient to change current policy.
10. Credit for Services Rendered to NRC by Licensees
    Comment. One commenter stated that the company performs services 
for the NRC which include training of NRC personnel, familiarization 
visits for NRC staff and contractors, and NRC requested tours for 
foreign and domestic dignitaries. The commenter believes that recovery 
of the costs by the licensee from the NRC would be justified and 
suggested that cost recovery for the licensee be implemented via 
``credits'' against NRC annual fees.
    Response. The annual fees assessed by the NRC are those necessary 
to recover 100 percent of its budget authority. In order to give 
``credits'' to licensees, the NRC would have to adjust the entire 
annual fee structure for a few licensees who volunteer to assist the 
NRC from time to time. Other licensees would be required to pick up the 
lost sums attributable to the credits. The NRC notes that it is solely 
within the discretion of the licensee to determine whether or not such 
assistance should be provided to the NRC. Therefore, the NRC is not 
adopting this suggestion.
11. Billing of the Office of Nuclear Regulatory Research Activities 
Related to Design Certification Reviews
    Comment. One commenter stated that NRC should bill design 
certification applicants for the Office of Nuclear Reactor Regulation 
(NRR) activities only and not bill for any activities relating to the 
Office of Nuclear Regulatory Research (RES).
    Response. This issue was addressed in the final FY 1995 fee rule. 
After careful consideration of the comments received on the proposed 
rule, the NRC indicated that beginning with the effective date of the 
FY 1995 final fee rule the NRC would bill applicants for RES's direct 
review and evaluation of the standard design in support of the NRC's 
Final Design Approval (FDA) design certification (60 FR 14673; March 
20, 1995). In the final FY 1995 fee rule, the NRC stated that it was 
changing its fee policy in this area and that it will charge vendors 
for only the research which is necessary to support the issuance of the 
FDA or certification. Research initiated to address generic issues, 
such as human factors or code development, will be included in the 
annual fee assessed under 10 CFR Part 171 annual fees (60 FR 32224; 
June 20, 1995). The NRC does not believe the arguments advanced by the 
commenter are sufficient to warrant a change in agency policy.

III. Final Action

    The NRC is amending its licensing, inspection, and annual fees to 
recover approximately 100 percent of its FY 1996 budget authority, 
including the budget authority for its Office of the Inspector General, 
less the appropriations received from the NWF. For FY 1996, the NRC's 
budget authority is $473.3 million, of which $11.0 million has been 
appropriated from the NWF. Therefore, OBRA-90 requires that the NRC 
collect approximately $462.3 million in FY 1996 through 10 CFR Part 170 
licensing and inspection fees and 10 CFR Part 171 annual fees. This 
amount to be recovered for FY 1996 is about $41.3 million less than the 
total amount to be recovered for FY 1995 and $50.7 million less when 
compared to the amount to be recovered for FY 1994. The NRC estimates 
that approximately $120.5 million will be recovered in FY 1996 from 
fees assessed under 10 CFR Part 170 and other offsetting receipts. The 
remaining $341.8 million will be recovered through the 10 CFR Part 171 
annual fees established for FY 1996.
    As a result of the reduced amount to be recovered for FY 1996 and 
the final changes outlined in this section, the FY 1996 annual fees for 
all licensees have been reduced by 6.5 percent compared to the annual 
fees assessed for FY 1995. The following examples illustrate changes in 
annual fees.

------------------------------------------------------------------------
                                                  FY 1995      FY 1996  
                                                 annual fee   annual fee
------------------------------------------------------------------------
Class of Licensees:                                                     
  Power Reactors..............................   $2,936,000   $2,746,000
  Nonpower Reactors...........................       56,500       52,800

[[Page 16208]]

                                                                        
  High Enriched Uranium Fuel Facility.........    2,569,000    2,403,000
  Low Enriched Uranium Fuel Facility..........    1,261,000    1,179,000
  UF6 Conversion Facility.....................      639,200      597,800
  Uranium Mills...............................       60,900       57,000
Typical Materials Licensees:                                            
  Radiographers...............................       13,900       13,000
  Well Loggers................................        8,100        7,500
  Gauge Users.................................        1,700        1,600
  Broad Scope Medical.........................       23,200       21,700
------------------------------------------------------------------------


    The NRC is also continuing its streamlining of the fee structure 
and process for materials licenses which began in FY 1995 and will make 
other changes as discussed in Sections A and B. Among the changes will 
be a change in the billing date for the annual fees imposed on many 
materials licensees.
    The NRC's fees for FY 1996 will become effective 60 days after 
publication of the final rule in the Federal Register. The NRC will 
send a bill for the amount of the annual fee upon publication of the FY 
1996 final rule to the licensee or certificate, registration or 
approval holder not subject to quarterly billing (those licensees who 
pay annual fees of less than $100,000) and whose anniversary date (the 
first day of the month in which the original license was issued) is 
before the effective date of the final FY 1996 rule. For these 
licensees, payment will be due on the effective date of the FY 1996 
rule. Those materials licensees whose license anniversary date during 
FY 1996 falls after the effective date of the final FY 1996 rule will 
be billed during the anniversary month of the license and payment will 
be due on the date of the invoice.

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

    Four amendments have been made to 10 CFR 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. The amendments also comply with the 
guidance in the Conference Committee Report on OBRA-90 that fees 
assessed under the Independent Offices Appropriation Act (IOAA) recover 
the full cost to the NRC of identifiable regulatory services each 
applicant or licensee receives.
    First, the two professional hourly rates established in FY 1995 in 
Sec. 170.20 are revised based on the FY 1996 budget. These rates are 
based on the FY 1996 direct FTEs and that portion of the FY 1996 budget 
that either does not constitute direct program support (contractual 
services costs) or is not recovered through the appropriation from the 
NWF. These rates are used to determine the Part 170 fees. The NRC has 
established a rate of $128 per hour ($223,314 per direct FTE) for the 
reactor program. This rate is applicable to all activities whose fees 
are based on full cost under Sec. 170.21 of the fee regulations. A 
second rate of $120 per hour ($209,057 per direct FTE) is established 
for the nuclear materials and nuclear waste program. This rate is 
applicable to all materials activities whose fees are based on full 
cost under Sec. 170.31 of the fee regulations.
    The two rates are based on cost center concepts adopted in FY 1995 
(60 FR 32225; June 20, 1995) and used for NRC budgeting purposes. In 
implementing cost center concepts, all budgeted resources are assigned 
to cost centers to the extent they can be separately distinguished. 
These costs include all salaries and benefits, contract support, and 
travel that support each cost center activity.
    Second, the NRC has adjusted the current Part 170 licensing and 
inspection fees in Secs. 170.21 and 170.31 for applicants and licensees 
to reflect the changes in the revised hourly rates.
    Third, to continue FY 1995 initiatives for streamlining its fee 
program and improving the predictability of fees, the NRC has 
eliminated certain materials ``flat'' renewal fees in Sec. 170.31 and 
has amended Sec. 170.12 accordingly. This final action is also 
consistent with NRC's recent Business Process Reengineering initiative 
to extend the duration of certain materials licenses. The NRC published 
a proposed rule in the Federal Register for comment on September 8, 
1995 (60 FR 46784) explaining this initiative. In the September 8, 
1995, proposed rule, certain materials licenses would be extended for 
five years beyond their expiration date. Additionally, comments were 
requested on the general topic of the appropriate duration of licenses. 
A final rule was published in the Federal Register on January 16, 1996 
(61 FR 1109).
    The elimination of 10 CFR Part 170 materials ``flat'' renewal fees 
continues to recognize that the NRC's ``regulatory service'' provided 
to licensees, as referred to in OBRA-90, is comprised of the total 
regulatory activities that the NRC determines are needed to regulate a 
class of licensees. These regulatory activities include not only 
renewals but also inspections, research, rulemaking, orders, 
enforcement actions, responses to allegations, incident investigations, 
and other activities necessary to regulate classes of licensees. This 
final action does not result in any net fee increases for affected 
licensees and would provide those licensees with greater fee 
predictability, a frequent licensee request in comments on past fee 
rules. The materials annual fees, which include the cost for any 
renewals, are effective for FY 1996. Materials licensees who paid a 
``flat'' 10 CFR Part 170 renewal fee for renewal applications filed in 
FY 1996 will receive a refund for those payments, as appropriate.
    Fourth, the language in Sec. 170.31, Category 15, relating to 
export and import licenses, is amended to clarify that export and 
import of materials includes the export and import of radioactive 
waste. The NRC amended 10 CFR Part 110 effective August 21, 1995 (60 FR 
37556; July 21, 1995), to require specific licenses for the export or 
import of radioactive waste.
    In summary, the NRC has (1) revised the two 10 CFR Part 170 hourly 
rates; (2) revised the licensing fees assessed under 10 CFR Part 170 to 
reflect the cost to the agency of providing the service; (3) eliminated 
the materials ``flat'' renewal fees in Sec. 170.31 and amended 
Sec. 170.12 accordingly; and (4) amended Category 15 in Sec. 170.31 to 
make clear that fees will be assessed for licenses authorizing the 
export or import of radioactive waste.

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

    Three amendments have been made to 10 CFR Part 171. First, the NRC 
is amending Secs. 171.15 and 171.16 to revise the annual fees for FY 
1996 to recover approximately 100 percent of the FY 1996 budget 
authority, less fees collected under 10 CFR Part 170 and funds 
appropriated from the NWF.
    In the FY 1995 final rule, the NRC stated that it would stabilize 
annual fees as follows. Beginning in FY 1996, the NRC would adjust the 
annual fees only by the percentage change (plus or minus) in NRC's 
total budget authority unless there was a substantial change in the 
total NRC budget authority or the magnitude of the budget allocated to 
a specific class of licensees. If either case occurred, the annual fee 
base would be

[[Page 16209]]

recalculated (60 FR 32225; June 20, 1995). The NRC also indicated that 
the percentage change would be adjusted based on changes in the 10 CFR 
Part 170 fees and other receipts as well as on the number of licensees 
paying the fees. The NRC does not believe the changes to the FY 1996 
budget compared to the FY 1995 budget warrant establishing new baseline 
fees for FY 1996. Therefore, the NRC is establishing the FY 1996 annual 
fees for all licensees at a level of 6.5 percent below the FY 1995 
annual fees. The 6.5 percent reduction is based on the changes in the 
budget to be recovered from fees, the amount of the budget recovered 
for 10 CFR Part 170 fees and other offsetting receipts, and changes in 
the number of licensees paying annual fees. Table I shows the total 
budget and fee amounts for FY 1995 and FY 1996.

  Table I.--Calculation of the Percentage Change to the FY 1995 Annual  
                                  Fees                                  
                          [Dollars in millions]                         
------------------------------------------------------------------------
                                                          FY95     FY96 
------------------------------------------------------------------------
Total Budget..........................................   $525.6   $473.3
    Less NWF..........................................    -22.0    -11.0
                                                      ------------------
Total Fee Base........................................    503.6    462.3
    Less Part 170 Fees and Other Receipts.............    141.1    120.5
                                                      ------------------
Total Annual Fee Amount...............................    362.5    341.8
------------------------------------------------------------------------

    As shown in Table I, the total amount to be recovered from annual 
fees in FY 1996 is $20.7M ($341.8-$362.5) or 5.7 percent less than the 
amount that was to be recovered from annual fees in FY 1995. This 
difference is the net change resulting from a reduction in the budget 
and a reduction in the expected collection from 10 CFR Part 170 fees 
and other receipts. The NRC notes that the reduction in 10 CFR Part 170 
fees for FY 1996 results primarily from the fact that NRC had a one-
time collection of five quarters of 10 CFR Part 170 fees in FY 1995 as 
a result of changes in its billing practices which permits the NRC to 
bill for services shortly after they are rendered.
    In addition to changes in the budget and 10 CFR Part 170 fees and 
other receipts, the number of licensees to pay fees in FY 1996 changed 
compared to FY 1995. Also, the amount of the small entity surcharge 
(difference between annual fee and small entity fee) decreased as the 
annual fees decreased. The changes in the number of licensees in the 
various classes plus the reduction in the small entity surcharge result 
in an additional decrease in the annual fee per licensee of 0.8 
percent. Thus the total change in the annual fees for FY 1996 compared 
to FY 1995 is a decrease of 6.5 percent (5.7 percent plus 0.8 percent).
    Second, Footnote 1 of 10 CFR 171.16(d) is amended to provide for a 
waiver of annual fees for FY 1996 for those materials licensees, and 
holders of certificates, registrations, and approvals who either filed 
for termination of their licenses or approvals or filed for possession 
only/storage licenses before October 1, 1995, and permanently ceased 
licensed activities entirely by September 30, 1995. All other licensees 
and approval holders who held a license or approval on October 1, 1995, 
are subject to FY 1996 annual fees. This change is made in recognition 
of the fact that since the final FY 1995 rule was published in June 
1995, some licensees have filed requests for termination of their 
licenses or certificates with the NRC. Other licensees have either 
called or written to the NRC since the FY 1995 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 such requests before the end of the fiscal year on 
September 30, 1995. Similar situations existed after the FY 1991-1994 
rules were published, and in those cases, the NRC provided an exemption 
from the requirement that the annual fee is waived only when a license 
is terminated before October 1 of each fiscal year.
    Third, beginning in FY 1996, the NRC will assess Sec. 171.16(d) 
annual fees based on the anniversary of the date the license was 
originally issued for those materials licenses whose annual fees are 
less than $100,000. Accordingly, a new paragraph is added to 
Sec. 171.19. For example, if the original license was issued on June 
17, then the anniversary date of that materials license, for annual fee 
purposes is June 1. The licensee will be billed in June of each year 
for the annual fees in effect on the anniversary date (the first day of 
the month that the original license was issued) of the license. For FY 
1996, those affected materials licenses with a license anniversary date 
between October 1, 1995, and the effective date of the final FY 1996 
fee rule will be billed upon publication of the final rule in the 
Federal Register and annually thereafter during the anniversary month 
of the license. Those affected materials licenses whose license 
anniversary date is on or after the effective date of the final FY 1996 
fee rule will be billed during the anniversary month of the license and 
annually thereafter based on the annual fee in effect at the time of 
billing. The specific license categories of materials licensees 
affected by this final change are listed in Sec. 171.19(d) of this 
final rule.
    Billing certain materials licensees on the anniversary date of the 
license will allow the NRC to make the billing process more efficient 
by distributing the billing and collection of annual fee invoices over 
the entire year. The current practice is to bill over 6,000 materials 
licenses simultaneously during the fiscal year. Section 171.19 is 
amended to credit quarterly partial annual fee payments for FY 1996 
already made by certain licensees in FY 1996 either toward their total 
annual fee to be assessed, or to make refunds, if necessary. Materials 
licensees who paid a ``flat'' 10 CFR Part 170 renewal fee for renewal 
applications filed in FY 1996 will receive a refund for those payments, 
as appropriate.
    The final 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 NRC's FY 1995 final rule indicating 
that, for the period FY 1996-1999, the expectation is that annual fees 
will be adjusted by the percentage change (plus or minus) to the NRC's 
budget authority adjusted for NRC offsetting receipts and the number of 
licensees paying annual fees.

IV. Section-by-Section Analysis

    The following analysis of those sections that will be amended by 
this final rule provides additional explanatory information. All 
references are to Title 10, Chapter I, U.S. Code of Federal 
Regulations.

Part 170

Section 170.12  Payment of Fees

    This section is amended to conform to the streamlining changes 
being made by the NRC. Section 170.12(a), which describes application 
fees, is amended to recognize that the NRC will not issue a new license 
or amendment prior to receipt of the prescribed fee. Section 170.12(d), 
which describes renewal fees, is amended to recognize that materials 
``flat'' renewal fees are eliminated. Section 170.12(g), which 
discusses inspection fees, is amended to recognize that materials 
``flat'' inspection fees were eliminated in the FY 1995 final rule (60 
FR 32218; June 20, 1995).

[[Page 16210]]

Section 170.20  Average Cost Per Professional Staff Hour

    This section is amended to establish two professional staff-hour 
rates based on FY 1996 budgeted costs--one for the reactor program and 
one for the nuclear material and nuclear waste program. Accordingly, 
the NRC reactor direct staff-hour rate for FY 1996 for all activities 
whose fees are based on full cost under Sec. 170.21 is $128 per hour, 
or $223,314 per direct FTE. The NRC nuclear material and nuclear waste 
direct staff-hour rate for all materials activities whose fees are 
based on full cost under Sec. 170.31 is $120 per hour, or $209,057 per 
direct FTE. The rates are based on the FY 1996 direct FTEs and NRC 
budgeted costs that are not recovered through the appropriation from 
the NWF. The NRC has continued the use of cost center concepts 
established in FY 1995 in allocating certain costs to the reactor and 
materials programs in order to more closely align budgeted costs with 
specific classes of licensees. The method used to determine the two 
professional hourly rates is as follows:
    1. Direct program FTE levels are identified for both the reactor 
program and the nuclear material and waste program.
    2. Direct contract support, which is the use of contract or other 
services in support of the line organization's direct program, is 
excluded from the calculation of the hourly rate because the costs for 
direct contract support are charged directly through the various 
categories of fees.
    3. All other direct program costs (i.e., Salaries and Benefits, 
Travel) represent ``in-house'' costs and are to be allocated by 
dividing them uniformly by the total number of direct FTEs for the 
program. In addition, salaries and benefits plus contracts for general 
and administrative support are allocated to each program based on that 
program's salaries and benefits. This method results in the following 
costs which are included in the hourly rates.

   Table II.--FY 1996 Budget Authority To Be Included in Hourly Rates   
                          [Dollars in millions]                         
------------------------------------------------------------------------
                                                Reactor      Materials  
                                               program        program   
------------------------------------------------------------------------
Salary and Benefits:                                                    
  Program.................................         $149.6          $46.3
  Allocated Agency Management & Support...           40.9           12.7
                                          ------------------------------
      Subtotal............................          190.5           59.0
General and Administrative Support (G&A):                               
  Program Travel and Other Support........           11.7            3.2
  Allocated Agency Management and Support.           69.5           21.5
                                          ------------------------------
      Subtotal............................           81.2           24.7
                                          ------------------------------
  Less offsetting receipts................             .1  .............
                                          ------------------------------
      Total Budget Included in Hourly Rate          271.6           83.7
  Program Direct FTEs.....................        1,216.2          400.5
  Rate per Direct FTE.....................      223,314        209,057  
  Professional Hourly Rate................          128            120  
------------------------------------------------------------------------

    Dividing the $271.6 million budget for the reactor program by the 
number of reactor program direct FTEs (1216.2) results in a rate for 
the reactor program of $223,314 per FTE for FY 1996. Dividing the $83.7 
million budget for the nuclear materials and nuclear waste program by 
the number of program direct FTEs (400.5) results in a rate of $209,057 
per FTE for FY 1996. The Direct FTE Hourly Rate for the reactor program 
is $128 per hour (rounded to the nearest whole dollar). This rate is 
calculated by dividing the cost per direct FTE ($223,314) by the number 
of productive hours in one year (1744 hours) as indicated in OMB 
Circular A-76, ``Performance of Commercial Activities.'' The Direct FTE 
Hourly Rate for the materials program is $120 per hour (rounded to the 
nearest whole dollar). This rate is calculated by dividing the cost per 
direct FTE ($209,057) by the number of productive hours in one year 
(1744 hours). The method used to calculate the FY 1996 hourly rate is 
the same as the method used in the FY 1995 rule. The FY 1996 rate is 
slightly higher than the FY 1995 rate due in part to the Federal pay 
raise given to all Federal employees in January 1995.

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 revising the licensing and inspection fees in this 
section, which are based on full-cost recovery, to reflect FY 1996 
budgeted costs and to recover costs incurred by the NRC in providing 
licensing and inspection services to identifiable recipients. The fees 
assessed for services provided under the schedule are based on the 
professional hourly rate, as shown in Sec. 170.20, for the reactor 
program and any direct program support (contractual services) costs 
expended by the NRC. Any professional hours expended on or after the 
effective date of the final rule will be assessed at the FY 1996 hourly 
rate for the reactor program, as shown in Sec. 170.20. Although the 
average amounts of time needed to review import and export licensing 
applications have not changed, the fees in Sec. 170.21, facility 
Category K, have increased from FY 1995 as a result of the increase in 
the hourly rate.
    For those applications currently on file and pending completion, 
footnote 2 of Sec. 170.21 is revised to provide that professional hours 
expended up to the effective date of the final rule will be assessed at 
the professional rates in effect at the time the service was rendered. 
For topical report applications currently on file that 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

[[Page 16211]]

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, which are based 
on full-cost recovery, are modified to recover the FY 1996 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 both the professional hourly rate as shown in 
Sec. 170.20 for the materials program and any direct program support 
(contractual services) costs expended by the NRC. Licensing fees based 
on the average time to review an application (``flat'' fees) are 
adjusted to reflect the increase in the professional hourly rate from 
$116 per hour in FY 1995 to $120 per hour in FY 1996. The ``flat'' 
renewal fees for certain materials licenses in Sec. 170.31 are 
eliminated and combined with the materials annual fees in 
Sec. 171.16(d).
    The amounts of the licensing ``flat'' fees were rounded off so that 
the amounts would be de minimis and the resulting flat fee would be 
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.
    Fee Category 15, covering the fees for export and import licenses, 
is amended to include clarifying language that export and import of 
materials includes the export and import of radioactive waste. The NRC 
amended 10 CFR Part 110 on July 21, 1995 (60 FR 37556), to require 
specific licenses for the export and import of radioactive waste. The 
final rule became effective August 21, 1995.
    The licensing ``flat'' fees are applicable to fee categories 1.C 
and 1.D; 2.B and 2.C; 3.A through 3.P; 4.B through 9.D, 10.B, 15.A 
through 15.E and 16. Applications filed on or after the effective date 
of the final rule are subject to the revised fees in this final rule. 
Although the average amounts of time needed to review licensing 
applications have not changed, the ``flat'' fees in Sec. 170.31 have 
increased from FY 1995 as a result of the increase in the hourly rate.
    For those licensing, inspection, and review fees that are based on 
full-cost recovery (cost for professional staff hours plus any 
contractual services), the materials program hourly rate of $120, as 
shown in Sec. 170.20, applies to those professional staff hours 
expended on or after the effective date of the final rule.

Part 171

Section 171.15  Annual Fee: Reactor Operating Licenses

    The annual fees in this section are revised as described below. 
Paragraph (d) is removed and reserved and paragraphs (a), (b), (c)(1), 
(c)(2) and (e) are revised to comply with the requirement of OBRA-90 
that the NRC recover approximately 100 percent of its budget for FY 
1996.
    Paragraph (b) is revised in its entirety to establish the FY 1996 
annual fee for operating power reactors and to change fiscal year 
references from FY 1995 to FY 1996. The fees are established by 
reducing FY 1995 annual fees (prior to rounding) by 6.5 percent. The 
activities comprising the base FY 1995 annual fee and the FY 1995 
additional charge (surcharge) are listed in paragraphs (b) and (c) and 
continue to be shown for convenience purposes. Paragraphs (c)(1) is 
revised in its entirety and (c)(2) is removed and reserved.
    With respect to Big Rock Point, a smaller, older reactor, the NRC 
hereby grants a partial exemption from the FY 1996 annual fees similar 
to FY 1995 based on a request filed with the NRC in accordance with 
Sec. 171.11.
    Each operating power reactor, except Big Rock Point, will pay an 
annual fee of $2,746,000 in FY 1996.
    Paragraph (d) is removed and reserved.
    Paragraph (e) is revised to show the amount of the FY 1996 annual 
fee for nonpower (test and research) reactors. In FY 1996, the annual 
fee of $52,800 is 6.5 percent below the FY 1995 level. The Energy 
Policy Act of 1992 established 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 
amended Sec. 171.11(a)(2) on July 20, 1994 (59 FR 36895) to exempt from 
annual fees the research reactor owned by the Rhode Island Atomic 
Energy Commission. The NRC will continue to grant exemptions from the 
annual fee to Federally-owned and State-owned research and test 
reactors that meet the exemption criteria specified in Sec. 171.11.

Section 171.16  Annual Fees: Materials Licensees, Holders of 
Certificates of Compliance, Holders of Sealed Source and Device 
Registrations, Holders of Quality Assurance Program Approvals, and 
Government Agencies Licensed by the NRC

    Section 171.16(c) covers the fees assessed for those licensees that 
can qualify as small entities under NRC size standards. The NRC will 
continue to assess two fees for licensees that qualify as small 
entities under the NRC's size standards. In general, licensees with 
gross annual receipts of $350,000 to $5 million pay a maximum fee of 
$1,800. A second or lower-tier small entity fee of $400 is in place for 
small entities with gross annual receipts of less than $350,000 and 
small governmental jurisdictions with a population of less than 20,000. 
No change in the amount of the small entity fees is being made because 
the small entity fees are not based on the budget but are established 
at a level to reduce the impact of fees on small entities. The small 
entity fees are shown in this final rule for convenience.
    Section 171.16(d) is revised to establish the FY 1996 annual fees 
for materials licensees, including Government agencies, licensed by the 
NRC. These fees were determined by reducing the FY 1995 annual fees 
(prior to rounding) by 6.5 percent.
    For the first time, the NRC is combining the ``flat'' material 
renewal fees in 10 CFR Part 170 with the annual fees in 10 CFR Part 
171. As described in the Federal Register on September 8, 1995 (60 FR 
46784), recent NRC internal reviews and regulatory impact surveys of 
materials licensees have highlighted areas in which the current 
materials licensing process can be improved. The NRC has completed the 
preliminary phases of its Business Process Reengineering (BPR) 
initiative to redesign the process of licensing medical, academic, and 
industrial users of byproduct materials as well as with regard to some 
small scope users of source and special nuclear materials. The NRC has 
extended, by rulemaking, certain specific materials licenses by five 
years from the current expiration dates of those licenses. Resources 
that would have otherwise been used to

[[Page 16212]]

renew these licenses would be devoted to the BPR project. The NRC is 
also examining whether to permanently change the license duration for 
materials licenses. The NRC estimates that approximately 80 percent of 
its approximately 6,500 materials licenses will be extended by the 
final rulemaking published in the Federal Register January 20, 1996 (60 
FR 1109). Consistent with this change in license renewals, the NRC is, 
for fee purposes, combining the materials ``flat'' renewal fees in 10 
CFR Part 170 with the annual fees in 10 CFR Part 171.
    This action also recognizes that the NRC's ``regulatory service'' 
provided to licensees, as referred to in OBRA-90, is comprised of the 
total regulatory activities that the NRC determines are needed to 
regulate a class of licensees. These regulatory activities include not 
only ``flat'' fee inspections but also research, rulemaking, orders, 
enforcement actions, responses to allegations, incident investigations, 
and other activities necessary to regulate classes of licensees. In 
addition to being consistent with the regulatory service concept of 
OBRA-90, the NRC believes that materials licensees' ``flat'' renewal 
fees can be combined with their annual fees without creating any 
significant questions of fairness. This is because the concept of the 
annual fee, including the renewal fee, has, in effect, already been 
implemented for most materials licensees. First, materials licensees 
currently pay a ``flat fee'' per renewal based on the average cost of a 
renewal for their fee category, and second, the renewal term of five 
years is identical for most materials licensees. Thus, licensees in the 
same materials license fee category already pay essentially the same 
average annual cost for renewals. Further, the average cost will 
decrease to a relatively small amount as a result of the five-year 
extension and potential change in license duration. Therefore, 
combining renewal and annual fees results in essentially the same 
average cost per license over time. This approach will provide 
materials licensees with simpler and more predictable NRC fee charges 
as there will be no additional fees paid for periodic renewals. Because 
certain materials FY 1996 annual fees will include renewals, those 
materials licensees who paid a ``flat'' 10 CFR Part 170 renewal fee for 
renewal applications filed in FY 1996 will be issued a refund, as 
appropriate.
    Beginning in FY 1996, the NRC will also bill annual fees for most 
materials licenses on the anniversary date of the license (licensees 
whose annual fees are $100,000 or more will continue to be assessed 
quarterly). The annual fee assessed will be the fee in effect on the 
license anniversary date. This final rule will apply to those materials 
licenses in the following fee categories: 1.C. and 1.D.; 2.A.(2) 
through 2.C.; 3.A. through 3.P.; 4.A. through 9.D., and 10.B. Billing 
most materials licenses on the anniversary date of the license will 
allow the NRC to improve the efficiency of its billing process; under 
this final rule an average of approximately 500 annual fee invoices 
will be sent to materials licensees each month. The current practice of 
billing over 6,000 materials licensees simultaneously each fiscal year 
is eliminated. For annual fee purposes, the anniversary date of the 
materials license is considered to be the first day of the month in 
which the original materials license was issued. For example, if the 
original materials license was issued on June 17 then, for annual fee 
purposes, the anniversary date of the materials license is June 1 and 
the licensee will be billed in June of each year for the annual fee in 
effect on June 1. This final change to the billing system means that 
during the transition period of FY 1996 affected materials licensees 
with an anniversary date falling between October 1, 1995, and the 
effective date of the FY 1996 fee rule will receive a bill payable on 
the effective date of the FY 1996 final rule. Affected materials 
licensees with license anniversary dates falling on or after the 
effective date of the FY 1996 final rule will be billed during their 
anniversary month of their license. Under this final rule, some 
materials licensees will unavoidably receive two annual fee bills 
during the 12 month transition period. For example, a materials 
licensee who paid its FY 1996 annual fee bill in May 1996, the planned 
effective date of the FY 1996 fee rule, will receive a bill six months 
later in November 1996 (FY 1997) if November is the anniversary month 
of that materials license. In this example, the licensee will pay the 
same annual fee in FY 1997 (November) as he paid in FY 1996 (May). 
Materials licensees will continue to pay fees at the FY 1996 rate in FY 
1997 until such time as the FY 1997 final fee rule becomes effective. 
Each bill would be for a different fiscal year, therefore, no double 
billing would occur.
    The NRC believes that the efficiencies gained by billing certain 
materials annual fees throughout the year as well as having materials 
licensees know exactly when they will be billed each year for the 
annual fee outweigh the inconveniences that may be caused during the 
transition period. New licenses issued during FY 1996 will receive a 
prorated annual fee in accordance with the current proration provision 
of Sec. 171.17. For example, those new materials licenses issued during 
the period October 1 through March 31 of the FY will be assessed one-
half the annual fee for FY 1996. New materials licenses issued on or 
after April 1, 1996, will not be assessed an annual fee for FY 1996. 
Thereafter, the full annual fee is due and payable each subsequent 
fiscal year on the anniversary date of the license. Beginning with the 
effective date of this FY 1996 final rule, affected licensees will be 
billed and will pay the annual fee in effect on the anniversary date of 
the license. Affected licensees who are not sure of the anniversary 
date of their materials license should check the original issue date of 
the license.
    A materials licensee may pay a reduced annual fee if the licensee 
qualifies as a small entity under the NRC's size standards and 
certifies that it is a small entity using NRC Form 526.
    The amount or range of the FY 1996 annual fees for all materials 
licensees is summarized as follows:

                  Materials Licenses--Annual Fee Ranges                 
------------------------------------------------------------------------
         Category of license                      Annual fees           
------------------------------------------------------------------------
Part 70--High enriched fuel facility.  $2,403,000.                      
Part 70--Low enriched fuel facility..  1,179,000.                       
Part 40-- UF6 conversion facility....  597,800.                         
Part 40--Uranium recovery facilities.  20,600 to 57,000.                
Part 30--Byproduct Material Licenses.  450 to 21,700.\1\                
Part 71--Transportation of             950 to 72,700.                   
 Radioactive Material.                                                  
Part 72--Independent Storage of Spent  260,900.                         
 Nuclear Fuel.                                                          
------------------------------------------------------------------------
\1\ Excludes the annual fee for a few military ``master'' materials     
  licenses of broad-scope issued to Government agencies, which is       
  $388,400.                                                             

    Section 171.16(e) is revised in its entirety to indicate the 
activities that were a part of the additional charge (surcharge) 
included in the FY 1995 annual fees. These activities are listed and 
continue to be shown for convenience.
    Footnote 1 of 10 CFR 171.16(d) is amended to provide a waiver of 
the annual fees for materials licensees, and holders of certificates, 
registrations, and approvals, who either filed for termination of their 
licenses or approvals or filed for possession only/

[[Page 16213]]

storage only licenses before October 1, 1995, and permanently ceased 
licensed activities entirely by September 30, 1995. All other licensees 
and approval holders who held a license or approval on October 1, 1995, 
are subject to the FY 1996 annual fees.

Section 171.19  Payment

    Paragraph (b) is revised to give credit for partial payments made 
by certain licensees in FY 1996 toward their FY 1996 annual fees. The 
NRC anticipates that the first, second, and third quarterly payments 
for FY 1996 will have been made by operating power reactor licensees 
and some large materials licensees before this final rule is effective. 
Therefore, the NRC will credit payments received for those quarterly 
annual fee assessments toward the total annual fee to be assessed. The 
NRC will adjust the fourth quarterly bill to recover the full amount of 
the revised annual fee or to make refunds, as necessary. The NRC also 
expects that certain materials licensees will have paid renewal fees 
for renewal applications that were filed in FY 1996, whereas this final 
rule includes the renewals in the annual fee. The NRC will refund these 
renewal fee payments, as appropriate. Payment of the annual fee is due 
on the date of the invoice and interest accrues from the invoice date. 
However, interest will be waived if payment is received within 30 days 
from the invoice date.
    Paragraph (c) is revised to update fiscal year references and to 
delete the references concerning payment requirements for those 
licensees whose annual fees are less than $100,000.
    A new paragraph (d) is added to cover those licensees whose annual 
fees are less than $100,000 and who will be billed on the anniversary 
date of their license beginning in FY 1996.
    During the past five years many licensees have indicated that, 
although they held a valid NRC license authorizing the possession and 
use of special nuclear, source, or byproduct material, they were either 
not using the material to conduct operations or had disposed of the 
material and no longer needed the license. In response, the NRC has 
consistently stated that annual fees are assessed based on whether a 
licensee holds a valid NRC license that authorizes possession and use 
of radioactive material. Whether or not a licensee is actually 
conducting operations using the material is a matter of licensee 
discretion. The NRC cannot control whether a licensee elects to possess 
and use radioactive material once it receives a license from the NRC. 
Therefore, the NRC reemphasizes that the annual fee will be assessed 
based on whether a licensee holds a valid NRC license that authorizes 
possession and use of radioactive material. To remove any uncertainty, 
the NRC issued minor clarifying amendments to 10 CFR 171.16, footnotes 
1 and 7 on July 20, 1993 (58 FR 38700).
    The NRC reinstated the exemption from 10 CFR Part 171 annual fees 
for nonprofit educational institutions on April 18, 1994 (59 FR 12539; 
March 17, 1994). In that final rule, the NRC indicated that although 
nonprofit research institutions were not exempt from annual fees, such 
institutions were free to file an exemption request based on the 
``public good'' concept if they felt they could qualify. Several 
nonprofit research institutions have since filed and been granted an 
exemption from the annual fees on that basis. In addition, some Federal 
agencies who hold materials licenses have filed for exemption from 
annual fees based on the public good concept as well. The requests from 
Federal agencies to receive public good exemptions have been denied by 
the NRC. The NRC did not intend to extend public good exemptions to 
Federal agencies.

V. Environmental Impact: Categorical Exclusion

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

VI. Paperwork Reduction Act Statement

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

VII. Regulatory Analysis

    With respect to 10 CFR Part 170, this final rule was developed 
pursuant to Title V of the Independent Offices Appropriation Act of 
1952 (IOAA) (31 U.S.C. 9701) and the Commission's fee guidelines. When 
developing these guidelines the Commission took into account guidance 
provided by the U.S. Supreme Court on March 4, 1974, in 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 FY 1998. To 
accomplish this statutory requirement, the NRC, in accordance with 
Sec. 171.13, is publishing the final

[[Page 16214]]

amount of the FY 1996 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 1996 budget of 
$473.3 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.
    10 CFR Part 171, which established annual fees for operating power 
reactors effective October 20, 1986 (51 FR 33224; September 18, 1986), 
was challenged and upheld in its entirety in Florida Power and Light 
Company v. United States, 846 F.2d 765 (D.C. Cir. 1988), cert. denied, 
490 U.S. 1045 (1989).
    The NRC's FY 1991 annual fee rule was largely upheld by the D.C. 
Circuit Court of Appeals in Allied Signal v. NRC, 988 F.2d 146 (D.C. 
Cir. 1993).

VIII. 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 final rule establishes the schedules of fees that are 
necessary to implement the Congressional mandate for FY 1996. The final 
rule results in a decrease in the annual fees charged to all licensees, 
and holders of certificates, registrations, and approvals. The 
Regulatory Flexibility Analysis, prepared in accordance with 5 U.S.C. 
604, is included as Appendix A to this final rule.

IX. Backfit Analysis

    The NRC has determined that the backfit rule, 10 CFR 50.109, does 
not apply to this final rule and that a backfit analysis is not 
required for this final rule. The backfit analysis is not required 
because these final amendments do not require the modification of or 
additions to systems, structures, components, or the design of a 
facility or the design approval or manufacturing license for a facility 
or the procedures or organization required to design, construct or 
operate a facility.

List of Subjects

10 CFR Part 170

    Byproduct material, Import and export licenses, Intergovernmental 
relations, Non-payment penalties, Nuclear materials, Nuclear power 
plants and reactors, Source material, Special nuclear material.

10 CFR Part 171

    Annual charges, Byproduct material, Holders of certificates, 
registrations, approvals, Intergovernmental relations, Non-payment 
penalties, Nuclear materials, Nuclear power plants and reactors, Source 
material, Special nuclear material.
    For the reasons set out in the preamble and under the authority of 
the Atomic Energy Act of 1954, as amended, and 5 U.S.C. 552 and 553, 
the NRC is adopting 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, Pub. L. 93-4381, 88 
Stat. 1242, as amended (42 U.S.C. 5841); sec. 205, Pub. L. 101-576, 
104 Stat. 2842, (31 U.S.C. 901).

    2. In Sec. 170.12, paragraph (d)(1) is removed and reserved and 
paragraphs (a) and (g) are revised to read as follows:


Sec. 170.12  Payment of fees.

    (a) Application fees. Each application for which a fee is 
prescribed shall be accompanied by a remittance in the full amount of 
the fee. The NRC will not issue a new license or amendment prior to the 
receipt of the prescribed fee. All application fees will be charged 
irrespective of the Commission's disposition of the application or a 
withdrawal of the application.
* * * * *
    (d) * * *
    (1) [Reserved].
* * * * *
    (g) Inspection fees. Fees for all inspections subject to full cost 
recovery will be assessed on a per inspection basis for completed 
inspections and are payable, on a quarterly basis, upon notification by 
the Commission. Inspection costs include preparation time, time on 
site, and documentation time and any associated contractual service 
costs, but exclude the time involved in the processing and issuance of 
a notice of violation or civil penalty.
* * * * *
    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 the following applicable professional staff-
hour rates:

Reactor Program (Sec.  170.21 Activities).  $128 per hour.              
Nuclear Materials and Nuclear Waste         $120 per hour.              
 Program (Sec.  170.31 Activities).                                     
                                                                        

    4. In Sec. 170.21, the introductory text, Category K, and footnotes 
1 and 2 to the table are revised to read as follows:


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

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

[[Page 16215]]



                        Schedule of Facility Fees                       
                     [See footnotes at end of table]                    
------------------------------------------------------------------------
      Facility categories and type of fees             Fees \1\ \2\     
------------------------------------------------------------------------
                                                                        
*                  *                  *                  *              
                  *                  *                  *               
K. Import and export licenses:                                          
    Licenses for the import and export only of                          
     production and utilization facilities or                           
     the export only of components for                                  
     production and utilization facilities                              
     issued pursuant to 10 CFR Part 110:                                
        1. Application for import or export of                          
         reactors and other facilities and                              
         exports of components which must be                            
         reviewed by the Commissioners and the                          
         Executive Branch, for example, actions                         
         under 10 CFR 110.40(b):                                        
            Application-new license............  $7,800                 
            Amendment..........................  $7,800                 
        2. Application for export of reactor                            
         and other components requiring                                 
         Executive Branch review only, for                              
         example, those actions under 10 CFR                            
         110.41(a)(1)-(8):                                              
            Application-new license............  $4,800                 
            Amendment..........................  $4,800                 
        3. Application for export of components                         
         requiring foreign government                                   
         assurances only:                                               
            Application-new license............  $3,000                 
            Amendment..........................  $3,000                 
        4. Application for export of facility                           
         components and equipment not requiring                         
         Commissioner review, Executive Branch                          
         review, or foreign government                                  
         assurances:                                                    
            Application-new license............  $1,200                 
            Amendment..........................  $1,200                 
        5. Minor amendment of any export or                             
         import license to extend the                                   
         expiration date, change domestic                               
         information, or make other revisions                           
         which do not require in-depth analysis                         
         or review:                                                     
            Amendment..........................  $120                   
------------------------------------------------------------------------
\1\ Fees will not be charged for orders issued by the Commission        
  pursuant to Sec.  2.202 of this chapter or for amendments resulting   
  specifically from the requirements of these types of Commission       
  orders. Fees will be charged for approvals issued under a specific    
  exemption provision of the Commission's regulations under Title 10 of 
  the Code of Federal Regulations (e.g., Secs.  50.12, 73.5) and any    
  other sections now or hereafter in effect regardless of whether the   
  approval is in the form of a license amendment, letter of approval,   
  safety evaluation report, or other form. Fees for licenses in this    
  schedule that are initially issued for less than full power are based 
  on review through the issuance of a full power license (generally full
  power is considered 100 percent of the facility's full rated power).  
  Thus, if a licensee received a low power license or a temporary       
  license for less than full power and subsequently receives full power 
  authority (by way of license amendment or otherwise), the total costs 
  for the license will be determined through that period when authority 
  is granted for full power operation. If a situation arises in which   
  the Commission determines that full operating power for a particular  
  facility should be less than 100 percent of full rated power, the     
  total costs for the license will be at that determined lower operating
  power level and not at the 100 percent capacity.                      
\2\ Full cost fees will be determined based on the professional staff   
  time and appropriate contractual support services expended. For       
  applications currently on file and for which fees are determined based
  on the full cost expended for the review, the professional staff hours
  expended for the review of the application up to the effective date of
  the final rule will be determined at the professional rates in effect 
  at the time the service was provided. For those applications currently
  on file for which review costs have reached an applicable fee ceiling 
  established by the June 20, 1984, and July 2, 1990, rules but are     
  still pending completion of the review, the cost incurred after any   
  applicable ceiling was reached through January 29, 1989, will not be  
  billed to the applicant. Any professional staff-hours expended above  
  those ceilings on or after January 30, 1989, will be assessed at the  
  applicable rates established by Sec.  170.20, as appropriate, except  
  for topical reports whose costs exceed $50,000. Costs which exceed    
  $50,000 for any topical report, amendment, revision or supplement to a
  topical report completed or under review from January 30, 1989,       
  through August 8, 1991, will not be billed to the applicant. Any      
  professional hours expended on or after August 9, 1991, will be       
  assessed at the applicable rate established in Sec.  170.20. In no    
  event will the total review costs be less than twice the hourly rate  
  shown in Sec.  170.20.                                                

* * * * *
    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.             

[[Page 16216]]

                                                                        
    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...............  $550.                  
        Amendment..............................  $300.                  
    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.                  
        Amendment..............................  $290.                  
    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. (1) Licenses for possession and use of                           
     source material in recovery operations                             
     such as milling, in-situ leaching, heap-                           
     leaching, refining uranium mill                                    
     concentrates to uranium hexafluoride, ore                          
     buying stations, ion exchange facilities                           
     and in processing of ores containing                               
     source material for extraction of metals                           
     other than uranium or thorium, including                           
     licenses authorizing the possession of                             
     byproduct waste material (tailings) from                           
     source material recovery operations, as                            
     well as licenses authorizing the                                   
     possession and maintenance of a facility                           
     in a standby mode:                                                 
        License, Renewal, Amendment............  Full Cost.             
        Inspections............................  Full Cost.             
    (2) Licenses that authorize the receipt of                          
     byproduct material, as defined in Section                          
     11e(2) of the Atomic Energy Act, from                              
     other persons for possession and disposal                          
     except those licenses subject to fees in                           
     Category 2.A. (1):                                                 
        License, renewal, amendment............  Full Cost.             
        Inspections............................  Full Cost.             
    (3) Licenses that authorize the receipt of                          
     byproduct material, as defined in Section                          
     11e(2) of the Atomic Energy Act, from                              
     other persons for possession and disposal                          
     incidental to the disposal of the uranium                          
     waste tailings generated by the licensee's                         
     milling operations, except those licenses                          
     subject to the fees in Category 2.A. (1):                          
        License, renewal, amendment............  Full Cost.             
        Inspections............................  Full Cost.             
    B. Licenses which authorize the possession,                         
     use and/or installation of source material                         
     for shielding:                                                     
        Application--New license...............  $160.                  
        Amendment..............................  $240.                  
    C. All other source material licenses:                              
        Application--New license...............  $2,800.                
        Amendment..............................  $420.                  
3. Byproduct material:                                                  
    A. Licenses of broad scope for possession                           
     and use of byproduct material issued                               
     pursuant to Parts 30 and 33 of this                                
     chapter for processing or manufacturing of                         
     items containing byproduct material for                            
     commercial distribution:                                           
        Application--New license...............  $3,000.                
        Amendment..............................  $550.                  
    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...............  $1,200.                
        Amendment..............................  $580.                  
    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...............  $4,100.                
        Amendment..............................  $520.                  
    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...............  $1,500.                
        Amendment..............................  $430.                  
    E. Licenses for possession and use of                               
     byproduct material in sealed sources for                           
     irradiation of materials in which the                              
     source is not removed from its shield                              
     (self-shielded units):                                             
        Application--New license...............  $1,200.                
        Amendment..............................  $360.                  
    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...............  $1,500.                
        Amendment..............................  $370.                  
    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...............  $6,000.                
        Amendment..............................  $780.                  

[[Page 16217]]

                                                                        
    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.                
        Amendment..............................  $1,000.                
    I. Licenses issued pursuant to Subpart A of                         
     Part 32 of this chapter to distribute                              
     items containing byproduct material or                             
     quantities of byproduct material that do                           
     not require device evaluation to persons                           
     exempt from the licensing requirements of                          
     Part 30 of this chapter, except for                                
     specific licenses authorizing                                      
     redistribution of items that have been                             
     authorized for distribution to persons                             
     exempt from the licensing requirements of                          
     Part 30 of this chapter:                                           
        Application--New license...............  $4,400.                
        Amendment..............................  $860.                  
    J. Licenses issued pursuant to Subpart B of                         
     Part 32 of this chapter to distribute                              
     items containing byproduct material that                           
     require sealed source and/or device review                         
     to persons generally licensed under Part                           
     31 of this chapter, except specific                                
     licenses authorizing redistribution of                             
     items that have been authorized for                                
     distribution to persons generally licensed                         
     under Part 31 of this chapter:                                     
        Application--New license...............  $1,600.                
        Amendment..............................  $290.                  
    K. Licenses issued pursuant to Subpart B of                         
     Part 32 of this chapter to distribute                              
     items containing byproduct material or                             
     quantities of byproduct material that do                           
     not require sealed source and/or device                            
     review to persons generally licensed under                         
     Part 31 of this chapter, except specific                           
     licenses authorizing redistribution of                             
     items that have been authorized for                                
     distribution to persons generally licensed                         
     under Part 31 of this chapter:                                     
        Application--New license...............  $1,300.                
        Amendment..............................  $310.                  
    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...............  $4,300.                
        Amendment..............................  $660.                  
    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...............  $1,500.                
        Amendment..............................  $610.                  
    N. Licenses that authorize services for                             
     other licensees, except:                                           
    (1) Licenses that authorize only                                    
     calibration and/or leak testing services                           
     are subject to the fees specified in fee                           
     Category 3P; and                                                   
    (2) Licenses that authorize waste disposal                          
     services are subject to the fees specified                         
     in fee Categories 4A, 4B, and 4C:                                  
        Application--New license...............  $1,900.                
        Amendment..............................  $590.                  
    O. Licenses for possession and use of                               
     byproduct material issued pursuant to Part                         
     34 of this chapter for industrial                                  
     radiography operations:                                            
        Application--New license...............  $3,900.                
        Amendment..............................  $720.                  
    P. All other specific byproduct material                            
     licenses, except those in Categories 4A                            
     through 9D:                                                        
        Application--New license...............  $550.                  
        Amendment..............................  $300.                  
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...............  $3,400.                
        Amendment..............................  $410.                  
    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...............  $1,700.                
        Amendment..............................  $290.                  
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...............  $3,200.                
        Amendment..............................  $640.                  
    B. Licenses for possession and use of                               
     byproduct material for field flooding                              
     tracer studies:                                                    
        License, renewal, amendment............  Full Cost.             
6. Nuclear laundries:                                                   

[[Page 16218]]

                                                                        
    A. Licenses for commercial collection and                           
     laundry of items contaminated with                                 
     byproduct material, source material, or                            
     special nuclear material:                                          
        Application--New license...............  $5,100.                
        Amendment..............................  $790.                  
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...............  $2,800.                
        Amendment..............................  $470.                  
    B. Licenses of broad scope issued to                                
     medical institutions or two or more                                
     physicians pursuant to Parts 30, 33, 35,                           
     40, and 70 of this chapter authorizing                             
     research and development, including human                          
     use of byproduct material, except licenses                         
     for byproduct material, source material,                           
     or special nuclear material in sealed                              
     sources contained in teletherapy devices:                          
        Application--New license...............  $3,000.                
        Amendment..............................  $580.                  
    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...............  $1,400.                
        Amendment..............................  $440.                  
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...............  $760.                  
        Amendment..............................  $350.                  
9. Device, product, or sealed source safety                             
 evaluation:                                                            
    A. Safety evaluation of devices or products                         
     containing byproduct material, source                              
     material, or special nuclear material,                             
     except reactor fuel devices, for                                   
     commercial distribution:                                           
        Application--each device...............  $3,400.                
        Amendment--each device.................  $1,200.                
    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...............  $1,700.                
        Amendment--each device.................  $600.                  
    C. Safety evaluation of sealed sources                              
     containing byproduct material, source                              
     material, or special nuclear material,                             
     except reactor fuel, for commercial                                
     distribution:                                                      
        Application--each source...............  $720.                  
        Amendment--each source.................  $240.                  
    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...............  $360.                  
        Amendment--each source.................  $120.                  
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..................  $340.                  
        Amendment..............................  $250.                  
        Inspections............................  Full Cost.             
11. Review of standardized spent fuel                                   
 facilities:                                                            
        Approval, Renewal, Amendment...........  Full Cost.             
        Inspections............................  Full Cost.             
12. Special projects:\5\                                                
        Approvals and preapplication/licensing   Full Cost.             
         activities.                                                    
        Inspections............................  Full Cost.             
13. A. Spent fuel storage cask Certificate of                           
 Compliance:                                                            
        Approvals..............................  Full Cost.             
        Amendments, revisions, and supplements.  Full Cost.             
        Reapproval.............................  Full Cost.             
    B. Inspections related to spent fuel                                
     storage cask:                                                      
        Certificate of Compliance..............  Full Cost.             
    C. Inspections related to storage of spent   Full Cost.             
     fuel under Sec.  72.210 of this chapter.                           
14. Byproduct, source, or special nuclear                               
 material licenses and other approvals                                  
 authorizing decommissioning, decontamination,                          
 reclamation, or site restoration activities                            
 pursuant to 10 CFR Parts 30, 40, 70, and 72 of                         
 this chapter:                                                          
        Approval, Renewal, Amendment...........  Full Cost.             
        Inspections............................  Full Cost.             
15. Import and Export licenses:                                         

[[Page 16219]]

                                                                        
    Licenses issued pursuant to 10 CFR Part 110                         
     of this chapter for the import and export                          
     only of special nuclear material, source                           
     material, tritium and other byproduct                              
     material, heavy water, or nuclear grade                            
     graphite:                                                          
    A. Application for export or import of high                         
     enriched uranium and other materials,                              
     including radioactive waste, which must be                         
     reviewed by the Commissioners and the                              
     Executive Branch, for example, those                               
     actions under 10 CFR 110.40(b). This                               
     category includes application for export                           
     or import of radioactive wastes in                                 
     multiple forms from multiple generators or                         
     brokers in the exporting country and/or                            
     going to multiple treatment, storage or                            
     disposal facilities in one or more                                 
     receiving countries:                                               
        Application--new license...............  $7,800.                
        Amendment..............................  $7,800.                
    B. Application for export or import of                              
     special nuclear material, source material,                         
     tritium and other byproduct material,                              
     heavy water, or nuclear grade graphite,                            
     including radioactive waste, requiring                             
     Executive Branch review but not                                    
     Commissioner review. This category                                 
     includes application for the export or                             
     import of radioactive waste involving a                            
     single form of waste from a single class                           
     of generator in the exporting country to a                         
     single treatment, storage and/or disposal                          
     facility in the receiving country:                                 
        Application--new license...............  $4,800.                
        Amendment..............................  $4,800.                
    C. Application for export of routine                                
     reloads of low enriched uranium reactor                            
     fuel and exports of source material                                
     requiring only foreign government                                  
     assurances under the Atomic Energy Act:                            
        Application--new license...............  $3,000.                
        Amendment..............................  $3,000.                
    D. Application for export or import of                              
     other materials, including radioactive                             
     waste, not requiring Commissioner review,                          
     Executive Branch review, or foreign                                
     government assurances under the Atomic                             
     Energy Act. This category includes                                 
     application for export or import of                                
     radioactive waste where the NRC has                                
     previously authorized the export or import                         
     of the same form of waste to or from the                           
     same or similar parties, requiring only                            
     confirmation from the receiving facility                           
     and licensing authorities that the                                 
     shipments may proceed according to                                 
     previously agreed understandings and                               
     procedures:                                                        
        Application--new license...............  $1,200.                
        Amendment..............................  $1,200.                
    E. Minor amendment of any export or import                          
     license to extend the expiration date,                             
     change domestic information, or make other                         
     revisions which do not require in-depth                            
     analysis, review, or consultations with                            
     other agencies or foreign governments:                             
        Amendment..............................  $120.                  
16. Reciprocity:                                                        
    Agreement State licensees who conduct                               
     activities in a non-Agreement State under                          
     the reciprocity provisions of 10 CFR                               
     150.20:                                                            
        Application (initial filing of Form      $1,100.                
         241).                                                          
        Revisions..............................  $200.                  
------------------------------------------------------------------------
\1\ Types of fees--Separate charges, as shown in the schedule, will be  
  assessed for preapplication consultations and reviews and applications
  for new licenses and approvals, issuance of new licenses and          
  approvals, amendments and certain renewals to existing licenses and   
  approvals, safety evaluations of sealed sources and devices, and      
  certain inspections. The following guidelines apply to these charges: 
(a) Application fees. Applications for new materials licenses and       
  approvals; applications to reinstate expired, terminated or inactive  
  licenses and approvals except those subject to fees assessed at full  
  costs, and applications filed by Agreement State licensees to register
  under the general license provisions of 10 CFR 150.20, must be        
  accompanied by the prescribed application fee for each category,      
  except that:                                                          
(1) Applications for licenses covering more than one fee category of    
  special nuclear material or source material must be accompanied by the
  prescribed application fee for the highest fee category; and          
(2) Applications for licenses under Category 1E must be accompanied by  
  the prescribed 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, 5B, 10A, 11, 12,
  13A, and 14) are due upon notification by the Commission in accordance
  with Sec.  170.12(b), (e), and (f).                                   
(c) Renewal/reapproval fees. Applications subject to full cost fees (fee
  Categories 1A, 1B, 1E, 2A, 4A, 5B, 10A, 11, 13A, and 14) are due upon 
  notification by the Commission in accordance with Sec.  170.12(d).    
(d) Amendment/Revision Fees.                                            
(1) Applications for amendments to licenses and approvals and revisions 
  to reciprocity initial applications, except those subject to fees     
  assessed at full costs, must be accompanied by the prescribed         
  amendment/revision fee for each license/revision affected. An         
  application for an amendment to a license or approval classified in   
  more than one fee category must be accompanied by the prescribed      
  amendment fee for the category affected by the amendment unless the   
  amendment is applicable to two or more fee categories in which case   
  the amendment fee for the highest fee category would apply. For those 
  licenses and approvals subject to full costs (fee Categories 1A, 1B,  
  1E, 2A, 4A, 5B, 10A, 11, 12, 13A, and 14), amendment fees are due upon
  notification by the Commission in accordance with Sec.  170.12(c).    
(2) An application for amendment to a materials license or approval that
  would place the license or approval in a higher fee category or add a 
  new fee category must be accompanied by the prescribed application fee
  for the new category.                                                 
(3) An application for amendment to a license or approval that would    
  reduce the scope of a licensee's program to a lower fee category must 
  be accompanied by the prescribed amendment fee for the lower fee      
  category.                                                             
(4) Applications to terminate licenses authorizing small materials      
  programs, when no dismantling or decontamination procedure is         
  required, are not subject to fees.                                    
(e) Inspection fees. Inspections resulting from investigations conducted
  by the Office of Investigations and nonroutine inspections that result
  from third-party allegations are not subject to fees. The fees        
  assessed at full cost will be determined based on the professional    
  staff time required to conduct the inspection multiplied by the rate  
  established under Sec.  170.20 plus any applicable contractual support
  services costs incurred. Inspection fees are due upon notification by 
  the Commission in accordance with Sec.  170.12(g).                    
\2\ Fees will not be charged for orders issued by the Commission        
  pursuant to 10 CFR 2.202 or for amendments resulting specifically from
  the requirements of these types of Commission orders. However, fees   
  will be charged for approvals issued under a specific exemption       
  provision of the Commission's regulations under Title 10 of the Code  
  of Federal Regulations (e.g., 10 CFR 30.11, 40.14, 70.14, 73.5, and   
  any other sections now or hereafter in effect) regardless of whether  
  the approval is in the form of a license amendment, letter of         
  approval, safety evaluation report, or other form. In addition to the 
  fee shown, an applicant may be assessed an additional fee for sealed  
  source and device evaluations as shown in Categories 9A through 9D.   

[[Page 16220]]

                                                                        
\3\ Full cost fees will be determined based on the professional staff   
  time and appropriate contractual support services expended. For those 
  applications currently on file and for which fees are determined based
  on the full cost expended for the review, the professional staff hours
  expended for the review of the application up to the effective date of
  the final rule will be determined at the professional rates in effect 
  at the time the service was provided. For applications currently on   
  file for which review costs have reached an applicable fee ceiling    
  established by the June 20, 1984, and July 2, 1990, rules, but are    
  still pending completion of the review, the cost incurred after any   
  applicable ceiling was reached through January 29, 1989, will not be  
  billed to the applicant. Any professional staff-hours expended above  
  those ceilings on or after January 30, 1989, will be assessed at the  
  applicable rates established by Sec.  170.20, as appropriate, except  
  for topical reports whose costs exceed $50,000. Costs which exceed    
  $50,000 for each topical report, amendment, revision, or supplement to
  a topical report completed or under review from January 30, 1989,     
  through August 8, 1991, will not be billed to the applicant. Any      
  professional hours expended on or after August 9, 1991, will be       
  assessed at the applicable rate established in Sec.  170.20. The      
  minimum total review cost is twice the hourly rate shown in Sec.      
  170.20.                                                               
\4\ Licensees paying fees under Categories 1A, 1B, and 1E are not       
  subject to fees under Categories 1C and 1D for sealed sources         
  authorized in the same license except in those instances in which an  
  application deals only with the sealed sources authorized by the      
  license. Applicants for new licenses that cover both byproduct        
  material and special nuclear material in sealed sources for use in    
  gauging devices will pay the appropriate application fee for fee      
  Category 1C only.                                                     
\5\ Fees will not be assessed for requests/reports submitted to the NRC:
                                                                        
(a) In response to a Generic Letter or NRC Bulletin that does not result
  in an amendment to the license, does not result in the review of an   
  alternate method or reanalysis to meet the requirements of the Generic
  Letter, or does not involve an unreviewed safety issue;               
(b) In response to an NRC request (at the Associate Office Director     
  level or above) to resolve an identified safety or environmental      
  issue, or to assist NRC in developing a rule, regulatory guide, policy
  statement, generic letter, or bulletin; or                            
(c) As a means of exchanging information between industry organizations 
  and the NRC for the purpose of supporting generic regulatory          
  improvements or efforts.                                              



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

    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. 171.15, paragraph (d) is removed and reserved and 
paragraphs (a), (b), (c)(1), (c)(2) 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) The FY 1996 uniform annual fee for each operating power reactor 
which must be collected by September 30, 1996, is $2,746,000. This fee 
has been determined by adjusting the FY 1995 annual fee downward by 
approximately 6 percent. The FY 1995 annual fee was comprised of a base 
annual fee and an additional charge (surcharge). The activities 
comprising the base FY 1995 annual fee are as follows:
    (1) Power reactor safety and safeguards regulation except licensing 
and inspection activities recovered under 10 CFR Part 170 of this 
chapter.
    (2) Research activities directly related to the regulation of power 
reactors.
    (3) Generic activities required largely for NRC to regulate power 
reactors, e.g., updating Part 50 of this chapter, or operating the 
Incident Response Center.
    (c) The activities comprising the FY 1995 surcharge are as follows:
    (1) Activities not attributable to an existing NRC licensee or 
class of licensees; e.g., reviews submitted by other government 
agencies (e.g., DOE) that do not result in a license or are not 
associated with a license; international cooperative safety program and 
international safeguards activities; low-level waste disposal generic 
activities; uranium enrichment generic activities; and
    (2) Activities not currently assessed under 10 CFR Part 170 
licensing and inspection fees based on existing Commission policy, 
e.g., reviews and inspections conducted of nonprofit educational 
institutions, and costs that would not be collected from small entities 
based on Commission policy in accordance with the Regulatory 
Flexibility Act.
* * * * *
    (d) [Reserved].
    (e) The FY 1996 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..............................................   $52,800
Test reactor..................................................   $52,800
                                                                        

* * * * *
    8. In Sec. 171.16, the introductory text of paragraph (c) and 
paragraphs (c)(1), (c)(4), (d), and (e) are revised to read as follows:


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

* * * * *
    (c) A licensee who is required to pay an annual fee under this 
section may qualify as a small entity. If a licensee qualifies as a 
small entity and provides the Commission with the proper certification, 
the licensee may pay reduced annual fees for FY 1996 as follows:

------------------------------------------------------------------------
                                                          Maximum annual
                                                              fee per   
                                                             licensed   
                                                             category   
------------------------------------------------------------------------
Small businesses not engaged in manufacturing and small                 
 not-for-profit organizations (gross annual receipts):                  
  $350,000 to $5 million................................          $1,800
  Less than $350,000....................................             400
Manufacturing entities that have an average of 500                      
 employees or less:                                                     
  35 to 500 employees...................................           1,800
  Less than 35 employees................................             400
Small Governmental jurisdictions (Including publicly                    
 supported educational institutions) (population):                      
  20,000 to 50,000......................................           1,800
  Less than 20,000......................................             400
Educational institutions that are not State or publicly                 
 supported, and have 500 employees or less.                             
  35 to 500 employees...................................           1,800
  Less than 35 employees................................             400
------------------------------------------------------------------------

    (1) A licensee qualifies as a small entity if it meets the size 
standards established by the NRC (See 10 CFR 2.810).
* * * * *
    (4) For FY 1996, the maximum annual fee a small entity is required 
to pay is

[[Page 16221]]

$1,800 for each category applicable to the license(s).
    (d) The FY 1996 annual fees for materials licensees and holders of 
certificates, registrations or approvals subject to fees under this 
section are shown below. The FY 1996 annual fees, which must be 
collected by September 30, 1996, have been determined by adjusting 
downward the FY 1995 annual fees by approximately 6 percent. The FY 
1995 annual fee was comprised of a base annual fee and an additional 
charge (surcharge). The activities comprising the FY 1995 surcharge are 
shown in paragraph (e) of this section.

   Schedule of Materials Annual Fees and Fees for Government Agencies   
                             Licensed by NRC                            
                     [See footnotes at end of table]                    
------------------------------------------------------------------------
                                                          Annual fees 1,
             Category of materials licenses                    2, 3     
------------------------------------------------------------------------
1. Special nuclear material:                                            
    A.(1) Licenses for possession and use of U-235 or                   
     plutonium for fuel fabrication activities.                         
        (a) Strategic Special Nuclear Material:                         
            Babcock & Wilcox (SNM-42)...................      $2,403,000
            Nuclear Fuel Services (SNM-124).............       2,403,000
        (b) Low Enriched Uranium in Dispersable Form                    
         Used for Fabrication of Power Reactor Fuel:                    
            Combustion Engineering (Hematite) (SNM-33)..       1,179,000
            General Electric Company (SNM-1097).........       1,179,000
            Siemens Nuclear Power (SNM-1227)............       1,179,000
            Westinghouse Electric Company (SNM-1107)....       1,179,000
    (2) All other special nuclear materials licenses not                
     included in Category 1.A.(1) which are licensed for                
     fuel cycle activities.                                             
        (a) Facilities with limited operations:                         
            B&W Fuel Company (SNM-1168).................         469,200
        (b) All Others:                                                 
            General Electric (SNM-960)..................         318,600
    B. Licenses for receipt and storage of spent fuel at                
     an independent spent fuel storage installation                     
     (ISFSI)............................................         260,900
    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.............           1,200
    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)............................................           2,800
    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...............................         597,800
        (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\......................          57,000
            Class II facilities \4\.....................          32,200
            Other facilities \4\........................          20,600
        (3) Licenses that authorize the receipt of                      
         byproduct material, as defined in Section                      
         11e.(2) of the Atomic Energy Act, from other                   
         persons for possession and disposal, except                    
         those licenses subject to the fees in Category                 
         2.A.(2) or Category 2.A.(4)....................          41,800
        (4) Licenses that authorize the receipt of                      
         byproduct material, as defined in Section                      
         11e(2) of the Atomic Energy Act, from other                    
         persons for possession and disposal incidental                 
         to the disposal of the uranium waste tailings                  
         generated by the licensee's milling operations,                
         except those licenses subject to the fees in                   
         Category 2.A.(2)...............................           7,400
    B. Licenses which authorize only the possession, use                
     and/or installation of source material for                         
     shielding..........................................             450
    C. All other source material licenses...............           8,100
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............................          15,400
    B. Other licenses for possession and use of                         
     byproduct material issued pursuant to Part 30 of                   
     this chapter for processing or manufacturing of                    
     items containing byproduct material for commercial                 
     distribution.......................................           5,200
    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.......................          10,400
    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. This category also includes the                
     possession and use of source material for shielding                
     authorized pursuant to Part 40 of this chapter when                
     included on the same license.......................           4,100
    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)...................           2,900
    F. Licenses for possession and use of less than                     
     10,000 curies of byproduct material in sealed                      
     sources for irradiation of materials in which the                  
     source is exposed for irradiation purposes. This                   
     category also includes underwater irradiators for                  
     irradiation of materials in which the source is not                
     exposed for irradiation purposes...................           3,500
    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...................          18,100

[[Page 16222]]

                                                                        
    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............................................           4,600
    I. Licenses issued pursuant to Subpart A of Part 32                 
     of this chapter to distribute items containing                     
     byproduct material or quantities of byproduct                      
     material that do not require device evaluation to                  
     persons exempt from the licensing requirements of                  
     Part 30 of this chapter, except for specific                       
     licenses authorizing redistribution of items that                  
     have been authorized for distribution to persons                   
     exempt from the licensing requirements of Part 30                  
     of this chapter....................................           8,200
    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...           3,500
    K. Licenses issued pursuant to Subpart B of Part 31                 
     of this chapter to distribute items containing                     
     byproduct material or quantities of byproduct                      
     material that do not require sealed source and/or                  
     device review to persons generally licensed under                  
     Part 31 of this chapter, except specific licenses                  
     authorizing redistribution of items that have been                 
     authorized for distribution to persons generally                   
     licensed under Part 31 of this chapter.............           3,000
    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......          11,400
    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
    N. Licenses that authorize services for other                       
     licensees, except:                                                 
        (1) Licenses that authorize only calibration and/               
         or leak testing services are subject to the                    
         fees specified in fee Category 3P; and                         
        (2) Licenses that authorize waste disposal                      
         services are subject to the fees specified in                  
         fee Categories 4A, 4B, and 4C..................           5,600
    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.......................................          13,000
    P. All other specific byproduct material licenses,                  
     except those in Categories 4A through 9D...........           1,600
4. Waste disposal and processing:                                       
    A. Licenses specifically authorizing the receipt of                 
     waste byproduct material, source material, or                      
     special nuclear material from other persons for the                
     purpose of contingency storage or commercial land                  
     disposal by the licensee; or licenses authorizing                  
     contingency storage of low-level radioactive waste                 
     at the site of nuclear power reactors; or licenses                 
     for receipt of waste from other persons for                        
     incineration or other treatment, packaging of                      
     resulting waste and residues, and transfer of                      
     packages to another person authorized to receive or                
     dispose of waste material..........................      \5\ 94,300
    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............................          13,300
    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.........................           7,100
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...           7,500
    B. Licenses for possession and use of byproduct                     
     material for field flooding tracer studies.........          12,200
6. Nuclear laundries:                                                   
    A. Licenses for commercial collection and laundry of                
     items contaminated with byproduct material, source                 
     material, or special nuclear material..............          13,600
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.....................           9,500
    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\..          21,700
    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. This category also includes the possession                
     and use of source material for shielding when                      
     authorized on the same license \9\.................           4,300
8. Civil defense:                                                       
    A. Licenses for possession and use of byproduct                     
     material, source material, or special nuclear                      
     material for civil defense activities..............           1,600
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.......................................           6,700
    B. Registrations issued for the safety evaluation of                
     devices or products containing byproduct material,                 
     source material, or special nuclear material                       
     manufactured in accordance with the unique                         
     specifications of, and for use by, a single                        
     applicant, except reactor fuel devices.............           3,400

[[Page 16223]]

                                                                        
    C. Registrations issued for the safety evaluation of                
     sealed sources containing byproduct material,                      
     source material, or special nuclear material,                      
     except reactor fuel, for commercial distribution...           1,400
    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.....................             720
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...........................          72,700
        Users...........................................             950
  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............................         260,900
  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..................................         388,400
  18. Department of Energy:.............................                
        A. Certificates of Compliance...................  \10\ 1,077,000
        B. Uranium Mill Tailing Radiation Control Act                   
         (UMTRCA) activities............................      1,812,000 
------------------------------------------------------------------------
\1\ Annual fees will be assessed based on whether a licensee held a     
  valid license with the NRC authorizing possession and use of          
  radioactive material during the fiscal year. However, the annual fee  
  is waived for those materials licenses and holders of certificates,   
  registrations, and approvals who either filed for termination of their
  licenses or approvals or filed for possession only/storage licenses   
  prior to October 1, 1995, and permanently ceased licensed activities  
  entirely by September 30, 1995. Annual fees for licensees who filed   
  for termination of a license, downgrade of a license, or for a POL    
  during the fiscal year and for new licenses issued during the fiscal  
  year will be prorated in accordance with the provisions of Sec.       
  171.17. If a person holds more than one license, certificate,         
  registration, or approval, the annual fee(s) will be assessed for each
  license, certificate, registration, or approval held by that person.  
  For licenses that authorize more than one activity on a single license
  (e.g., human use and irradiator activities), annual fees will be      
  assessed for each category applicable to the license. Licensees paying
  annual fees under Category 1.A.(1) are not subject to the annual fees 
  of Category 1.C and 1.D for sealed sources authorized in the license. 
\2\ Payment of the prescribed annual fee does not automatically renew   
  the license, certificate, registration, or approval for which the fee 
  is paid. Renewal applications must be filed in accordance with the    
  requirements of Parts 30, 40, 70, 71, or 72 of this chapter.          
\3\ For FYs 1997 and 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, Parts 71 and 72 Certificates of 
  Compliance, and special reviews, such as topical reports, are not     
  assessed an annual fee because the generic costs of regulating these  
  activities are primarily attributable to the users of the designs,    
  certificates, and topical reports.                                    
\7\ Licensees in this category are not assessed an annual fee because   
  they are charged an annual fee in other categories while they are     
  licensed to operate.                                                  
\8\ No annual fee is charged because it is not practical to administer  
  due to the relatively short life or temporary nature of the license.  
\9\ Separate annual fees will not be assessed for pacemaker licenses    
  issued to medical institutions who also hold nuclear medicine licenses
  under Categories 7B or 7C.                                            
\10\ This includes Certificates of Compliance issued to DOE that are not
  under the Nuclear Waste Fund.                                         
\11\ No annual fee has been established because there are currently no  
  licensees in this particular fee category.                            


    (e) The activities comprising the FY 1995 surcharge are as follows:
    (1) LLW disposal generic activities;
    (2) Activities not attributable to an existing NRC licensee or 
classes of licensees; e.g., international cooperative safety program 
and international safeguards activities; support for the Agreement 
State program; site decommissioning management plan (SDMP) activities; 
and
    (3) Activities not currently assessed under 10 CFR part 170 
licensing and inspection fees based on existing law or Commission 
policy, e.g., reviews and inspections conducted of nonprofit 
educational institutions and Federal agencies; activities related to 
decommissioning and reclamation and costs that would not be collected 
from small entities based on Commission policy in accordance with the 
Regulatory Flexibility Act.
* * * * *
    9. In Sec. 171.19, paragraphs (b) and (c) are revised and a new 
paragraph (d) is added to read as follows:


Sec. 171.19  Payment.

* * * * *
    (b) For FY 1996 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. The 
NRC will refund any ``flat'' materials renewal fees payments received 
for renewal applications filed in FY 1996, as appropriate. 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 or on the anniversary date of the 
license.

[[Page 16224]]

Payment is due on the invoice date and interest accrues from the date 
of the invoice. However, interest will be waived if payment is received 
within 30 days from the invoice date.
    (c) For FYs 1996 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.
    (d) For FYs 1996 through 1998, annual fees of less than $100,000 
must be paid as billed by the NRC. Beginning in FY 1996, materials 
license annual fees that are less than $100,000 will be billed on the 
anniversary of the license. The materials licensees that will be billed 
on the anniversary date of the license are those covered by fee 
categories 1.C. and 1.D.; 2.A.(2) through 2.C.; 3.A. through 3.P.; 4.B. 
through 9.D.; and 10.B. For annual fee purposes, the anniversary date 
of the license is considered to be the first day of the month in which 
the original license was issued by the NRC. During the transition year 
of FY 1996, licensees with license anniversary dates falling between 
October 1, 1995, and the effective date of the FY 1996 final rule will 
receive an annual fee bill payable on the effective date of the final 
rule, and licensees with license anniversary dates that fall on or 
after the effective date of the final rule will be billed on the 
anniversary of their license. Starting with the effective date of the 
FY 1996 final rule, licensees that are billed on the license 
anniversary date will be assessed the annual fee in effect on the 
anniversary date of the license.

    Dated at Rockville, Maryland, this 25th day of March, 1996.

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

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

I. Background

    The Regulatory Flexibility Act 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 (RFA), first the NRC adopted size standards for 
determining which NRC licensees qualify as small entities (50 FR 50241; 
December 9, 1985). These size standards were clarified November 6, 1991 
(56 FR 56672). On April 7, 1994 (59 FR 16513), the Small Business 
Administration (SBA) issued a final rule changing its size standards. 
The SBA adjusted its receipts-based size standards levels to mitigate 
the effects of inflation from 1984 to 1994. On November 30, 1994 (59 FR 
61293), the NRC published a proposed rule to amend its size standards. 
After evaluating the two comments received, a final rule that would 
revise the NRC's size standards as proposed was developed and approved 
by the SBA on March 24, 1995. The NRC published the final rule revising 
its size standards on April 11, 1995 (60 FR 18344). The revised 
standards became effective May 11, 1995. The revised standards adjusted 
the NRC receipts-based size standards from $3.5 million to $5 million 
to accommodate inflation and to conform to the SBA final rule. The NRC 
also eliminated the separate $1 million size standard for private 
practice physicians and applied a receipts-based size standard of $5 
million to this class of licensees. This mirrored the revised SBA 
standard of $5 million for medical practitioners. The NRC also 
established a size standard of 500 or fewer employees for business 
concerns that are manufacturing entities. This standard is the most 
commonly used SBA employee standard and is the standard applicable to 
the types of manufacturing industries that hold an NRC license.
    The NRC used the revised standards in the final FY 1995 fee rule 
and is using them in this FY 1996 final rule. The small entity fee 
categories in Sec. 171.16(c) of this final rule reflect the changes in 
the NRC's size standards adopted in FY 1995. A new maximum small entity 
fee for manufacturing industries with 35 to 500 employees was 
established at $1,800 and a lower-tier small entity fee of $400 was 
established for those manufacturing industries with less than 35 
employees. The lower-tier receipts-based threshold of $250,000 was 
raised to $350,000 to reflect approximately the same percentage 
adjustment as that made by the SBA when they adjusted the receipts-
based standard from $3.5 million to $5 million. The NRC believes that 
continuing these actions for FY 1996 will reduce the impact of annual 
fees on small businesses. The NRC size standards are codified at 10 CFR 
2.810.
    Public Law 101-508, the Omnibus Budget Reconciliation Act of 1990 
(OBRA-90), requires that the NRC recover approximately 100 percent of 
its budget authority, less appropriations from the Nuclear Waste Fund, 
for Fiscal Years (FY) 1991 through 1995 by assessing license and annual 
fees. OBRA-90 was amended in 1993 to extend the 100 percent recovery 
requirement for NRC through 1998. For FY 1991, the amount for 
collection was approximately $445.3 million; for FY 1992, approximately 
$492.5 million; for FY 1993 about $518.9 million; for FY 1994 about 
$513 million; for FY 1995 about $503.6 million and the amount to be 
collected in FY 1996 is approximately $462.3 million.
    To comply with OBRA-90, the Commission amended its fee regulations 
in 10 CFR Parts 170 and 171 in FY 1991 (56 FR 31472; July 10, 1991) in 
FY 1992, (57 FR 32691; July 23, 1992) in FY 1993 (58 FR 38666; July 20, 
1993) in FY 1994 (59 FR 36895; July 20, 1994) and in FY 1995 (60 FR 
32218; June 20, 1995) based on a careful evaluation of over 1,000 
comments. These final rules established the methodology used by NRC in 
identifying and determining the fees assessed and collected in FYs 
1991-1995.
    The NRC indicated in the FY 1995 final rule that it would attempt 
to stabilize annual fees as follows. Beginning in FY 1996, it would 
adjust the annual fees only by the percentage change (plus or minus) in 
NRC's total budget authority unless there was a substantial change in 
the total NRC budget authority or the magnitude of the budget allocated 
to a specific class of licensees, in which case the annual fee base 
would be recalculated (60 FR 32225; June 20, 1995). The NRC also 
indicated that the percentage change would be adjusted based on changes 
in the 10 CFR Part 170 fees and other receipts as well as an adjustment 
for the number of licensees paying the fees. As a result, the NRC is 
establishing the FY 1996 annual fees for all licensees at 6.5 percent 
below the FY 1995 annual fees. The NRC believes that the 6.5 percent 
downward adjustment to the FY 1995 annual fees is not a substantial 
enough change to warrant establishing a new baseline for FY 1996.
    The NRC is also continuing to streamline the fee structure and 
process for materials licenses, efforts which

[[Page 16225]]

began in FY 1995. Two changes are being made in this area.
    First, the NRC will assess annual fees for certain materials 
licenses on the anniversary date of the license. Billing certain 
materials licenses on the anniversary date of the license will allow 
NRC to make improved efficiencies in the billing process whereby 
approximately 500 annual fee invoices will be sent to materials 
licensees each month. The current practice of billing over 6,000 
materials licensees at the same time in the fiscal year is eliminated. 
The NRC believes that the efficiencies gained by billing certain 
materials annual fees on a monthly basis as well as materials licensees 
knowing exactly when they will be billed each year for the annual fee 
outweigh the inconveniences that may be caused during the FY 1996 
transition period.
    Second, the NRC is further streamlining the materials fee program 
and improving the predictability of fees by eliminating the materials 
``flat'' renewal fees in Sec. 170.31. This action is consistent with 
the NRC's recent Business Process Reengineering initiative to extend 
the duration of certain materials licenses. The NRC published a 
proposed rule explaining this initiative in the Federal Register on 
September 8, 1995, (60 FR 46784). In the proposed rule, certain 
materials licenses would be extended for five years beyond their 
expiration date. Additionally, comments were requested on the general 
topic of the appropriate duration of licenses. A final rule was 
published in the Federal Register on January 16, 1996 (61 FR 1109).

II. Impact on Small Entities

    The comments received on the proposed FY 1991-1995 fee rule 
revisions and the small entity certifications received in response to 
the final FY 1991-1995 fee rules indicate that NRC licensees qualifying 
as small entities under the NRC's size standards are primarily those 
licensed under the NRC's materials program. Therefore, this analysis 
will focus on the economic impact of the annual fees on materials 
licensees.
    The Commission's fee regulations result in substantial fees being 
charged to those individuals, organizations, and companies that are 
licensed under the NRC materials program. Of these materials licensees, 
about 18 percent (approximately 1,300 licensees) have requested small 
entity certification in the past. In FY 1993, the NRC conducted a 
survey of its materials licensees. The results of this survey indicated 
that about 25 percent of these licensees could qualify as small 
entities under the current NRC size standards.
    The commenters on the FY 1991-1994 proposed fee rules indicated the 
following results if the proposed annual fees were not modified:

--Large firms would gain an unfair competitive advantage over small 
entities. One commenter noted that a small well-logging company (a 
``Mom and Pop'' type of operation) would find it difficult to absorb 
the annual fee, while a large corporation would find it easier. Another 
commenter noted that the fee increase could be more easily absorbed by 
a high-volume nuclear medicine clinic. A gauge licensee noted that, in 
the very competitive soils testing market, the annual fees would put it 
at an extreme disadvantage with its much larger competitors because the 
proposed fees would be the same for a two-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 five years, approximately 2,900 license, approval, 
and registration terminations have been requested. Although some of 
these terminations were requested because the license was no longer 
needed or licenses or registrations could be combined, indications are 
that other termination requests were due to the economic impact of the 
fees.
    The NRC continues to receive written and oral comments from small 
materials licensees. These commenters previously indicated that the 
$3.5 million threshold for small entities was not representative of 
small businesses with gross receipts in the thousands of dollars. These 
commenters believe that the $1,800 maximum annual fee represents a 
relatively high percentage of gross annual receipts for these ``Mom and 
Pop'' type businesses. Therefore, even the reduced annual fee could 
have a significant impact on the ability of these types of businesses 
to continue to operate.
    To alleviate the continuing significant impact of the annual fees 
on a substantial number of small entities, the NRC considered 
alternatives, in accordance with the RFA. These alternatives were 
evaluated in the FY 1991 rule (56 FR 31472; July 10, 1991) in the FY 
1992 rule (57 FR 32691; July 23, 1992), in the FY 1993 rule (58 FR 
38666; July 20, 1993); in the FY 1994 rule (59 FR 36895; July 20, 1994) 
and in the FY 1995 rule (60 FR 32218; June 20, 1995). 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 1991-1995 evaluations of the these 
alternatives. Based on that reexamination, the NRC continues to believe 
that establishment of a maximum fee for small entities is the most 
appropriate option to reduce the impact on small entities.
    The NRC established, and is continuing for FY 1996, 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 1996, the NRC will 
rely on the analysis previously completed that established a maximum 
annual fee for a small entity and the amount of costs that must be 
recovered from other NRC licensees as a result of establishing the 
maximum annual fees.
    The NRC continues to believe that the 10 CFR Part 170 license fees

[[Page 16226]]

(application and amendment), or any adjustments to these licensing fees 
during the past year, do not have a significant impact on small 
entities. In issuing this final rule for FY 1996, the NRC concludes 
that the 10 CFR Part 170 materials license fees do not have a 
significant impact on a substantial number of small entities and that 
the 10 CFR Part 171 maximum annual small entity fee of $1,800 be 
continued.
    By maintaining the maximum annual fee for small entities at $1,800, 
the annual fee for many small entities is reduced while at the same 
time materials licensees, including small entities, pay for most of the 
FY 1996 costs attributable to them. The costs not recovered from small 
entities are allocated to other materials licensees and to operating 
power reactors. However, the amount that must be recovered from other 
licensees as a result of maintaining the maximum annual fee is not 
expected to increase. Therefore, the NRC is continuing, for FY 1996, 
the maximum annual fee (base annual fee plus surcharge) for certain 
small entities at $1,800 for each fee category covered by each license 
issued to a small entity.
    While reducing the impact on many small entities, the Commission 
agrees that the maximum annual fee of $1,800 for small entities, when 
added to the Part 170 license fees, may continue to have a significant 
impact on materials licensees with annual gross receipts in the 
thousands of dollars. Therefore, as in FY 1992-1995, the NRC is 
continuing the lower-tier small entity annual fee of $400 for small 
entities with relatively low gross annual receipts. The lower-tier 
small entity fee of $400 also applies to manufacturing concerns, and 
educational institutions not State or publicly supported, with less 
than 35 employees. This lower-tier small entity fee was first 
established in the final rule published in the Federal Register on 
April 17, 1992 (57 FR 13625) and now includes manufacturing companies 
with a relatively small number of employees.

III. Summary

    The NRC has determined the 10 CFR Part 171 annual fees 
significantly 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 fee on small entities. On the basis 
of its regulatory flexibility analyses, the NRC concludes that a 
maximum annual fee of $1,800 for small entities and a lower-tier small 
entity annual fee of $400 for small businesses and not-for-profit 
organizations with gross annual receipts of less than $350,000, small 
governmental jurisdictions with a population of less than 20,000, small 
manufacturing entities that have less than 35 employees and educational 
institutions that are not State or publicly supported and have less 
than 35 employees reduces the impact on small entities. At the same 
time, these reduced annual fees are consistent with the objectives of 
OBRA-90. Thus, the revised fees for small entities maintain a balance 
between the objectives of OBRA-90 and the RFA. Therefore, the analysis 
and conclusions established in the FY 1991-1995 rules remain valid for 
this final rule for FY 1996.

[FR Doc. 96-9026 Filed 4-11-96; 8:45 am]
BILLING CODE 7590-01-P