[Federal Register Volume 63, Number 62 (Wednesday, April 1, 1998)]
[Proposed Rules]
[Pages 16046-16067]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8279]



[[Page 16045]]

_______________________________________________________________________

Part VIII





Nuclear Regulatory Commission





_______________________________________________________________________



10 CFR Parts 2, 140, 170 and 171



Revision of Fee Schedules; 100% Fee Recovery, FY 1998; Proposed Rule

  Federal Register/Vol. 63, No. 62/Wednesday, April 1, 1998/Proposed 
Rules  

[[Page 16046]]



NUCLEAR REGULATORY COMMISSION

10 CFR Parts 2, 140, 170 and 171

RIN 3150-AF 83


Revision of Fee Schedules; 100% Fee Recovery, FY 1998

AGENCY: Nuclear Regulatory Commission.

ACTION: Proposed rule.

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

SUMMARY: The Nuclear Regulatory Commission (NRC) is proposing to amend 
the licensing, inspection, and annual fees charged to its applicants 
and licensees. The proposed amendments are necessary to implement 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) 1998, less amounts appropriated from the Nuclear 
Waste Fund (NWF). The amount to be recovered for FY 1998 is 
approximately $454.8 million. The NRC is also proposing to provide 
additional payment methods for civil penalties and indemnity fees, as 
well as annual and licensing fees.

DATES: The comment period expires May 1, 1998. Comments received after 
this date will be considered if it is practical to do so, but the NRC 
is able to ensure only that comments received on or before this date 
will be considered. Because OBRA-90 requires that NRC collect the FY 
1998 fees by September 30, 1998, requests for extensions of the comment 
period will not be granted.

ADDRESSES: Mail written comments to: Secretary, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555-0001, ATTN: Rulemakings and 
Adjudications Staff. Hand deliver comments to: 11555 Rockville Pike, 
Rockville, Maryland 20852, between 7:30 am and 4:15 pm Federal 
workdays. (Telephone 301-415-1678). Comments may also be submitted via 
the NRC's interactive rulemaking website through the NRC home page 
(http://www.nrc.gov). From the NRC homepage, select ``Rulemaking'' from 
the tool bar. The interactive rulemaking website can then be accessed 
by selecting ``New Rulemaking Website''. This site provides the 
availability to upload comments as files (any format), if your web 
browser supports that function. For information about the interactive 
rulemaking site, contact Ms. Carol Gallagher, 301-415-5905; e-mail 
[email protected].
    Copies of comments received and the agency workpapers that support 
these proposed changes to 10 CFR Parts 170 and 171 may be examined at 
the NRC Public Document Room, 2120 L Street NW. (Lower Level), 
Washington, DC 20555-0001. Comments received may also be viewed and 
downloaded electronically via the interactive rulemaking website 
established by the NRC for this rulemaking.

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

SUPPLEMENTARY INFORMATION:

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

I. Background

    Public Law 101-508, the Omnibus Budget Reconciliation Act of 1990 
(OBRA-90), enacted November 5, 1990, requires that the NRC recover 
approximately 100 percent of its budget authority, less the amount 
appropriated from the Department of Energy (DOE) administered NWF, for 
FYs 1991 through 1995 by assessing fees. OBRA-90 was amended in 1993 to 
extend the NRC's 100 percent fee recovery requirement through FY 1998.
    The NRC assesses two types of fees to recover its budget authority. 
First, license and inspection fees, established at 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 April 12, 1996 (61 FR 16203), 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 1996, less the appropriation received from the Nuclear Waste 
Fund. Several changes to the fees assessed for FY 1996 were adopted by 
the NRC. These changes were highlighted in this final rule (61 FR 
16203; April 12, 1996) and bear on the approach for establishing annual 
fees set forth in this proposed rule.

II. Proposed Action

    The NRC is proposing to amend its licensing, inspection, and annual 
fees to recover approximately 100 percent of its FY 1998 budget 
authority, including the budget authority for its Office of the 
Inspector General, less the appropriations received from the NWF and 
the General Fund. For FY 1998, the NRC's budget authority is $472.8 
million, of which $15.0 million has been appropriated from the NWF. In 
addition, $3.0 million has been appropriated from the General Fund for 
activities related to commercial vitrification of waste stored at the 
Department of Energy Hanford, Washington site, and for the pilot 
program for the external regulation of the Department of Energy. The FY 
1998 appropriation language states that the $3.0 million appropriated 
for regulatory reviews and other activities pertaining to waste stored 
at the Hanford, Washington site and activities associated with the 
pilot program for external regulation of the Department of Energy shall 
be excluded from license fee revenues notwithstanding 42 U.S.C. 2214. 
Therefore, NRC is required to collect approximately $454.8 million in 
FY 1998 through 10 CFR Part 170 licensing and inspection fees and 10 
CFR Part 171 annual fees.
    The total amount to be recovered in fees for FY 1998 is $7.5 
million less than the amount estimated for recovery for FY 1997. The 
NRC estimates that approximately $94.6 million will be recovered in FY 
1998 from fees assessed under 10 CFR Part 170 and other receipts, 
compared to $95.2 million in FY 1997. The remaining $360.2 million 
would be recovered in FY 1998 through the 10 CFR Part 171 annual fees. 
The total amount to be recovered through annual fees in FY 1998 is 
approximately $6.4 million less than in FY 1997.
    In addition to the decrease in the total amount to be recovered 
through annual fees and the slight reduction in the estimated amount to 
be recovered in 10 CFR Part 170 fees, the number of licensees paying 
annual fees in FY 1998 has decreased compared to FY 1997. For example, 
Commonwealth Edison has notified the NRC that the Zion Station Units 1 
and 2 ceased operations on February 13, 1998. In addition, both the 
Haddam Neck Plant and the Maine Yankee Plant ceased operations during 
FY 1997 and therefore are not subject to the FY 1998 annual fees. This 
is equivalent to a reduction of 2.5 power

[[Page 16047]]

reactors subject to the FY 1998 annual fees compared to FY 1997. The 
Big Rock Point Plant, a small older reactor historically granted a 
partial exemption from the annual fee, also ceased operations in FY 
1997 and is no longer subject to annual fees.
    As a result of these changes, the proposed FY 1998 annual fees 
would increase slightly, by 0.1 percent, compared to the FY 1997 actual 
(prior to rounding) annual fees. Because this is a slight increase, 
after rounding the proposed FY 1998 annual fees for many fee categories 
are the same as the final (rounded) FY 1997 annual fees. The change to 
the annual fees is described in more detail in Section B. The following 
examples illustrate the changes in annual fees:

------------------------------------------------------------------------
                                                              FY 1998   
                                              FY 1997        proposed   
                                            annual fee      annual fee  
------------------------------------------------------------------------
Class of Licensees:                                                     
    Power Reactors......................      $2,978,000      $2,980,000
    Nonpower Reactors...................          57,300          57,300
    High Enriched Uranium Fuel Facility.       2,606,000       2,607,000
    Low Enriched Uranium Fuel Facility..       1,279,000       1,280,000
    UF6 Conversion Facility.............         648,000         649,000
    Uranium Mills.......................          61,800          61,800
Typical Materials Licenses:                                             
    Radiographers.......................          14,100          14,100
    Well Loggers........................           8,200           8,200
    Gauge Users.........................           1,700           1,700
    Broad Scope Medical.................          23,500          23,500
------------------------------------------------------------------------

    Because the final FY 1998 fee rule will be a ``major'' final action 
as defined by the Small Business Regulatory Enforcement Fairness Act of 
1996, the NRC's fees for FY 1998 would become effective 60 days after 
publication of the final rule in the Federal Register. The NRC will 
send an invoice for the amount of the annual fee upon publication of 
the FY 1998 final rule to reactors and major fuel cycle facilities. For 
these licensees, payment would be due on the effective date of the FY 
1998 rule. Those materials licensees whose license anniversary date 
during FY 1998 falls before the effective date of the final FY 1998 
final rule would be billed during the anniversary month of the license 
and continue to pay annual fees at the FY 1997 rate in FY 1998. Those 
materials licensees whose license anniversary date falls on or after 
the effective date of the final FY 1998 final rule would be billed at 
the FY 1998 revised rates during the anniversary month of the license 
and payment would be due on the date of the invoice.
    The NRC is announcing here that it plans to discontinue mailing the 
final rule to all licensees. In addition to publication in the Federal 
Register, the final rule will be available on the internet at http://
ruleforum.llnl.gov/.
    Copies of the final rule will be mailed upon request. To obtain a 
copy of the final rule, contact the License Fee and Accounts Receivable 
Branch, Division of Accounting and Finance, Office of the Chief 
Financial Officer, at 301-415-7554. As a matter of courtesy, the NRC 
plans to continue to send the proposed rule to all licensees.
    The NRC is also announcing here that it plans to reexamine the 
current annual fee exemption policy for licensees in decommissioning or 
holding possession only licenses and the annual fee policy for 
reactors' storage of spent fuel. Any changes to the current fee 
policies will be included in the FY 1999 fee rulemaking. One purpose of 
the study is to assure consistent fee treatment for both wet storage 
(i.e., spent fuel pool) and dry storage (i.e., independent spent fuel 
storage installations, or ISFSIs) of spent fuel. The Commission has 
previously determined that both storage options are considered safe and 
acceptable forms of storage for spent fuel. Under current fee 
regulations, Part 50 licensees in decommissioning who store spent fuel 
in the spent fuel pool are not assessed an annual fee, but licensees 
who store spent fuel in an ISFSI under Part 72 are assessed an annual 
fee. The NRC will review this policy as part of the overall study of 
the issues related to annual fees for licensees in decommissioning.
    The NRC is also proposing to make other changes to 10 CFR Parts 170 
and 171 as discussed in Sections A. and B. below:

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

    The NRC proposes four amendments to 10 CFR Part 170. These 
amendments would 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 
that each applicant or licensee receives.
    First, the NRC proposes to revise Sec. 170.12(g) to include the 
following for cost recovery:
    (1) Full-cost recovery for resident inspectors.
    Currently, resident inspectors' time is billed to the site to which 
they are assigned only if the time is reported to a specific inspection 
report number. The remaining costs related to the resident inspector 
are recovered in the annual fees assessed to all licensees in the 
class. Because the assignment of a resident inspector to a site is an 
identifiable service to a specific licensee, the NRC is proposing that 
all of the resident inspectors' official duty time (i.e., excluding 
leave) be billed to the specific licensee under Part 170. This change 
would be applicable to all classes of licensees having resident 
inspectors.
    (2) Costs expended within 30 days after the issuance of an 
inspection report.
    Section 170.12 (g) provides that costs will be assessed for 
completed inspections. Currently, for fee recovery purposes, an 
inspection is considered to be completed when the inspection report is 
issued. The result is that costs expended after the report is sent are 
recovered through the annual fees imposed on all licensees in that 
class.
    Activities that occur after the inspection report is issued, such 
as follow-up on the inspection findings, are identifiable services for 
specific licensees. Therefore, NRC proposes to assess Part 170 fees for 
these services.

[[Page 16048]]

However, in order to establish a clear interval during which 
accumulated costs would be billed, the proposed change to Part 170 
would recover costs from the specific licensee for activities that 
occur within 30 days after the issuance of the inspection report. This 
change would result in recovery of 80 percent of these accumulated 
costs under Part 170, and would continue to provide applicants and 
licensees with a definitive point at which billing would cease.
    Second, the NRC proposes to revise Sec. 170.12(h) to include credit 
cards as an additional method of payment, and to provide additional 
information on electronic payments. Credit card payments would be 
accepted for small dollar payments. Electronic payments may be made by 
Fedwire (a funds transfer system operated by the Federal Reserve 
System) or by Automated Clearing House (ACH). ACH is a nationwide 
processing and delivery facility that provides for the distribution and 
settlement of electronic financial transactions. Electronic payment 
will not only expedite the payment process, but will also save 
applicants and licensees considerable time and money over a paper-based 
payment system.
    Third, the NRC proposes that the two professional hourly rates 
established in FY 1997 in Sec. 170.20 be revised based on the FY 1998 
budget. These proposed rates would be based on the FY 1998 direct FTEs 
and the FY 1998 budget excluding direct program support and the 
appropriation from the NWF or the General Fund. These rates are used to 
determine the Part 170 fees. The NRC is proposing to establish a rate 
of $124 per hour ($219,901 per direct FTE) for the reactor program. 
This rate would be applicable to all activities for which fees are 
based on full cost under Sec. 170.21 of the fee regulations. A second 
rate of $121 per hour ($214,185 per direct FTE) is proposed for the 
nuclear materials and nuclear waste program. This rate would be 
applicable to all materials activities for which fees are based on full 
cost under Sec. 170.31 of the fee regulations. In the FY 1997 final fee 
rule, these rates were $131 and $125, respectively. The decrease in the 
hourly rates is primarily due to a change in application of the types 
of costs included in the hourly rates. Previously, the hourly rates 
were determined based on the premise that surcharge costs should be 
shared by those paying Part 170 fees for services as well as those 
paying Part 171 annual fees. The proposed hourly rates have been 
determined based on the principle that the surcharge costs are more 
appropriately included only in the Part 171 annual fee.
    In addition, Section Chiefs are included as overhead in the 
calculation of the proposed FY 1998 hourly rates, and any specific 
Section Chief effort expended for reviews and inspections will not be 
billed to the applicant or licensee. Previously, the Section Chiefs' 
time for specific licensing and inspection activities were directly 
billed under Part 170 to the applicant or licensee. This change is 
consistent with the current budget structure which includes Section 
Chiefs as overhead.
    Fourth, the NRC proposes to adjust the current Part 170 licensing 
fees in Secs. 170.21 and 170.31 to reflect the revised hourly rates.
    In summary, the NRC is proposing to:
    (1) Assess Part 170 fees to recover costs for all of the resident 
inspectors' official duty time (i.e, excluding leave) and costs 
incurred within 30 days after issuance of an inspection report.
    (2) Offer additional payment methods for 10 CFR Part 170 fees.
    (3) Revise the two 10 CFR Part 170 hourly rates.
    (4) Revise the licensing (application and amendment) fees assessed 
under 10 CFR Part 170 to reflect the revised hourly rates.
    Although not a specific change to Part 170, the NRC also is 
announcing plans to change the current policy with regard to fees for 
activities performed during overtime. Currently only work performed 
during regular hours is billed to the applicants and licensees. To more 
fully recover costs under Part 170, the NRC plans to assess Part 170 
fees for compensated overtime hours expended for activities covered by 
Part 170, such as reviews of applications, inspections, Part 55 exams, 
and special projects. The compensated overtime hours will be billed at 
the normal hourly rate.
    In addition, the NRC is also announcing plans to bill for 
accumulated inspection costs prior to issuance of the inspection report 
under certain circumstances. Currently, as provided in 10 CFR 
170.12(g), inspection costs are billed only after the inspection is 
completed, i.e, when the inspection report is issued. As a result, in 
some cases inspection costs accumulate over several billing cycles, and 
the licensee receives one invoice for these accumulated costs rather 
than being billed as the costs are expended. However, NRC plans to 
progress bill for inspections in selected cases where it is determined 
that such billing would be in the best interest of the agency and the 
licensee. If it is determined that the accumulated costs warrant an 
exception to the billing method currently provided in 10 CFR 170.12(g), 
NRC will coordinate with the licensee to establish a mutually agreeable 
billing schedule and will issue an invoice for inspection costs that 
have accumulated.
    The NRC is developing a system that will accommodate routine 
billing for accumulated inspection costs at a specified interval. Once 
that system is available, the NRC intends to progress bill for all 
inspections. The staff is seeking early comment on the long-term policy 
in this FY 1998 proposed rule. The necessary revision to 10 CFR 170 
would be made in future rulemaking when the system is available to 
accomplish this.

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

    The NRC proposes four amendments to 10 CFR Part 171.
    First, the NRC proposes to amend Sec. 171.13 to delete specific 
fiscal year references.
    Second, the NRC proposes to amend Secs. 171.15 and 171.16 to revise 
the annual fees for FY 1998 to recover approximately 100 percent of the 
FY 1998 budget authority, less fees collected under 10 CFR Part 170 and 
funds appropriated from the NWF and the General Fund. 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 
recalculated (60 FR 32225; June 20, 1995). The NRC also indicated that 
the percentage change would be adjusted based on changes in 10 CFR Part 
170 fees and other adjustments as well as on the number of licensees 
paying the fees.
    In the FY 1996 final rule, the NRC stabilized the annual fees by 
establishing the annual fees for all licensees at a level of 6.5 
percent below the FY 1995 annual fees. For FY 1997, the NRC followed 
the same method as used in FY 1996. Because the amount to be recovered 
through fees for FY 1997 was identical to the amount to be recovered in 
FY 1996, establishing new baseline fees was not warranted for FY 1997. 
Based on a change in the distribution between Parts 170 and 171

[[Page 16049]]

fees, a reduction in the amount of the budget recovered for 10 CFR Part 
170 fees, a reduction in other offsetting adjustments, and a reduction 
in the number of licensees paying annual fees, the FY 1997 annual fees 
for all licensees increased 8.4 percent compared to the FY 1996 annual 
fees. In addition, beginning in FY 1997, the NRC made an adjustment to 
recognize that all fees billed in a fiscal year are not collected in 
that year.
    As indicated in the FY 1995 final rule, because there has not been 
a substantial change in the NRC budget or in the magnitude of a 
specific budget allocation to a class of licensees, the NRC intends to 
continue to stabilize annual fees by following the same method used for 
FY 1996 and FY 1997 to establish the FY 1998 annual fees.
    The FY 1998 amount to be recovered through fees is approximately 
$454.8 million, which is $7.5 million less than in FY 1997. The 
estimated amount to be recovered in 10 CFR Part 170 fees is $94.6 
million, compared to $95.2 million for FY 1997. Due largely to the 
adjustment for the reduced number of licensees paying annual fees, the 
10 CFR Part 171 annual fees must increase slightly in FY 1998 compared 
to FY 1997 in order to recover 100 percent of the budget. The reduced 
number of licensees paying annual fees is primarily the result of the 
equivalent of 2.5 fewer power reactors subject to annual fees in FY 
1998. In addition, for FY 1998 there is a reduction of approximately 
200 transportation quality assurance approvals as a result of the 
rulemaking in 1997 that combined these approvals with the Part 34 
radiography licenses.
    The FY 1998 annual fees for all licensees would be established at a 
level of 0.1 percent above the FY 1997 actual (prior to rounding) 
annual fees. The NRC notes that this increase is less than the 2.7 
percent inflation factor used by the Office of Management and Budget 
for the FY 1998 budget. Based on the small change, the rounded FY 1998 
annual fee for many fee categories is the same as the final (rounded) 
FY 1997 annual fee. Therefore, for many licensees, the proposed annual 
fee for FY 1998 is the same as the FY 1997 annual fee. Table I shows 
the total budget and amounts of fees for FY 1997 and FY 1998.

  Table I.--Calculation of the Percentage Change to the FY 1997 Annual  
                                  Fees                                  
                          [Dollars in Millions]                         
------------------------------------------------------------------------
                                                       FY97       FY98  
------------------------------------------------------------------------
Total Budget......................................     $476.8     $472.8
  Less NWF........................................      -11.0      -15.0
  Less General Fund (Hanford Tanks, Pilot for                           
   Regulation of DOE).............................       -3.5       -3.0
                                                   ---------------------
Total Fee Base....................................      462.3      454.8
  Less Part 170 Fees..............................       95.2       94.6
  Less other receipts.............................  .........  .........
Part 171 Fee Collections Required.................      367.1      360.2
Part 171 Billing Adjustment1:                                           
  Small Entity Allowance..........................        5.0        5.8
  Unpaid FY 1997 invoices.........................        3.0        3.9
  Payments from prior year invoices...............       -2.0       -3.2
                                                   ---------------------
    Subtotal......................................        6.0        6.5
                                                   =====================
    Total Part 171 Billing........................      373.1     366.7 
------------------------------------------------------------------------
1These adjustments are necessary to ensure that the ``billed'' amount   
  results in the required collections. Positive amounts indicate amounts
  billed that will not be collected in FY 1998.                         

    Third, Footnote 1 of 10 CFR 171.16(d) would be amended to provide 
for a waiver of annual fees for FY 1998 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, 1997, and 
permanently ceased licensed activities entirely by September 30, 1997. 
All other licensees and approval holders who held a license or approval 
on October 1, 1997, are subject to FY 1998 annual fees. This change is 
being made in recognition of the fact that since the final FY 1997 rule 
was published in May 1997, 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 1997 
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 requests before the end of the fiscal 
year on September 30, 1997. Similar situations existed after the FY 
1991-1996 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.
    Fourth, Sec. 171.19 would be amended to update fiscal year 
references and to credit the partial payments made by certain licensees 
in FY 1998 either toward their total annual fee to be assessed or to 
make refunds, if necessary. Section 171.19(a) would also be amended to 
provide credit cards as an additional method of payment, and to provide 
additional information on electronic payments. Credit card payments 
would be accepted for small dollar payments. Electronic payments may be 
made by Fedwire (a funds transfer system operated by the Federal 
Reserve System) or by Automated Clearing House (ACH). ACH is a 
nationwide processing and delivery facility that provides for the 
distribution and settlement of electronic financial transactions. 
Electronic payments will not only expedite the payment process, but 
will also save applicants and licensees considerable time and money 
over a paper-based payment system.
    The NRC will send an invoice to reactors and major fuel cycle 
facilities for the amount of the annual fee upon publication of the FY 
1998 final rule. For these licensees, payment will be due on the 
effective date of FY 1998 rule. Those materials licensees whose license 
anniversary date during FY 1998 falls before the effective date of the 
final FY 1998 rule will be billed during the anniversary month of the 
license and continue to pay annual fees at the FY 1997 rate in FY 1998. 
Those materials licensees whose license anniversary date falls on or 
after the effective date of the final FY 1998 rule would be billed, at 
the FY 1998 revised rates, during the anniversary month of the license 
and payment would be due on the date of the invoice.
    The proposed amendments to 10 CFR Part 171 do not change the 
underlying basis for 10 CFR Part 171; that is, charging a class of 
licensees for NRC costs attributable to that class of licensees. The 
proposed 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 would 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.
    In addition to the amendment to 10 CFR Parts 170 and 171, the NRC 
is proposing conforming amendments to 10 CFR Parts 2 and 140 to include 
the additional methods of payments provided in 10 CFR Parts 170 and 
171.

[[Page 16050]]

III. Section-by-Section Analysis

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

Part 2

Section 2.205  Civil Penalties

    Paragraph 2.205(i) would be revised to provide additional methods 
of payment, such as Automated Clearing House and credit cards, and to 
clarify that payments are to be made in U.S. funds to the U.S. Nuclear 
Regulatory Commission.

Part 140

Section 140.7  Fees

    Paragraphs (a)(5) and (c) would be revised to delete references to 
payment instructions. A new paragraph (d) would be added to provide 
payment instructions, including clarification that payments are to be 
made in U.S. funds to the U.S. Nuclear Regulatory Commission and to 
provide additional methods of payments, such as Automated Clearing 
House and credit cards.

Part 170

Section 170.12  Payment of Fees

    Paragraph (g) would be revised to indicate that costs incurred 
within 30 days after the inspection report is issued will be billed to 
the specific licensees, and that inspection fees will be assessed for 
each assigned resident inspector based on the number of hours the 
assigned resident inspector(s) is in an official duty status (i.e., 
excluding leave).
    Paragraph (h) would be revised to provide additional methods of 
payment for fees assessed under 10 CFR 170 and to clarify that payment 
should be made in U.S. funds.

Section 170.20  Average Cost per Professional Staff-Hour

    This section would be amended to establish two professional staff-
hour rates based on FY 1998 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 1998 for all 
activities whose fees are based on full cost under Sec. 170.21 would be 
$124 per hour, or $219,901 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 would be $121 per hour, 
or $214,185 per direct FTE. The rates are based on the FY 1998 direct 
FTEs and NRC budgeted costs that are not recovered through the 
appropriation from the NWF or the General Fund. 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 1998 Budget Authority To Be Included in Hourly Rates   
                          [Dollars in millions]                         
------------------------------------------------------------------------
                                                  Reactor     Materials 
                                                  program      program  
------------------------------------------------------------------------
Direct Program Salaries & Benefits............       $103.9        $20.5
Overhead Salaries & Benefits, Program Travel                            
 and Other Support............................         55.3        $14.8
Allocated Agency Management and Support.......        101.7        $22.0
                                               -------------------------
    Subtotal..................................        260.9        $57.3
                                               -------------------------
Less offsetting receipts......................                          
    Total Budget Included in Hourly Rate......       $260.9        $57.3
                                               -------------------------
Program Direct FTEs...........................      1,186.4        267.3
Rate per Direct FTE...........................     $219,901     $214,185
Professional Hourly Rate (Rate per direct FTE                           
 divided by 1,776 hours)......................          124          121
------------------------------------------------------------------------

    Dividing the $260.9 million (rounded) budget for the reactor 
program by the reactor program direct FTEs (1,186.4) results in a rate 
for the reactor program of $219,901 per FTE for FY 1998. Dividing the 
$57.3 million (rounded) budget for the nuclear materials and nuclear 
waste program by the program direct FTEs (267.3) results in a rate of 
$214,185 per FTE for FY 1998. The Direct FTE Hourly Rate for the 
reactor program would be $124 per hour (rounded to the nearest whole 
dollar). This rate is calculated by dividing the cost per direct FTE 
($219,901) by the number of productive hours in one year (1,776 hours) 
as indicated in the revised OMB Circular A-76, ``Performance of 
Commercial Activities.'' The Direct FTE Hourly Rate for the materials 
program would be $121 per hour (rounded to the nearest whole dollar). 
This rate is calculated by dividing the cost per direct FTE ($214,185) 
by the number of productive hours in one year (1,776 hours).
    The proposed FY 1998 hourly rates are slightly lower than the FY 
1997 rates. The decrease in the hourly rates is primarily due to a 
change in application of the types of costs included in the hourly 
rates. Previously, the hourly rates were determined based on the 
premise that surcharge costs should be shared by those paying Part 170 
fees for services as well as those

[[Page 16051]]

paying Part 171 annual fees. The proposed hourly rates have been 
determined based on the principle that the surcharge costs are more 
appropriately included only in the Part 171 annual fee.

Section 170.21  Schedule of Fees for Production and Utilization 
Facilities, Review of Standard Reference Design Approvals, Special 
Projects, Inspections and Import and Export Licenses

    The NRC is proposing to revise the licensing and inspection fees in 
this section, which are based on full-cost recovery, to reflect FY 1998 
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 1998 hourly 
rate for the reactor program, as shown in Sec. 170.20. The fees in 
Sec. 170.21 for the review of import and export licensing, facility 
Category K, would be adjusted for FY 1998 to reflect the revised hourly 
rate.

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, would be modified to recover the FY 1998 costs 
incurred by the NRC in providing licensing and inspection services to 
identifiable recipients. The fees assessed for services provided under 
the schedule would be 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) 
would be adjusted to reflect the decrease in the professional hourly 
rate from $125 per hour in FY 1997 to $121 per hour in FY 1998.
    The amounts of the materials licensing ``flat'' fees were rounded 
so that the amounts would be de minimis and the resulting flat fee 
would be convenient to the user. Fees under $1,000 are rounded to the 
nearest $10. Fees that are greater than $1,000 but less than $100,000 
are rounded to the nearest $100. Fees that are greater than $100,000 
are rounded to the nearest $1,000.
    The proposed licensing ``flat'' fees are applicable to fee 
categories 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 would be subject to the revised fees 
in this proposed rule.
    For those licensing, inspection, and review fees that are based on 
full-cost recovery (cost for professional staff hours plus any 
contractual services), the proposed materials program hourly rate of 
$121, as shown in Sec. 170.20, would apply to those professional staff 
hours expended on or after the effective date of the final rule.

Part 171

Section 171.13  Notice

    The language in this section would be revised to delete specific 
fiscal year references.

Section 171.15  Annual Fee: Reactor Operating Licenses

    The annual fees in this section would be revised as described 
below.
    Paragraphs (b), (c)(1), (c)(2), (e) and (f) would be revised to 
comply with the requirement of OBRA-90 that the NRC recover 
approximately 100 percent of its budget for FY 1998.
    Paragraph (b) would be revised in its entirety to establish the FY 
1998 annual fee for operating power reactors and to change fiscal year 
references from FY 1997 to FY 1998. The fees would be established by 
increasing FY 1997 annual fees (prior to rounding) by 0.1 percent. In 
the FY 1995 final rule, the NRC stated it would stabilize annual fees 
by adjusting the annual fees only by the percentage change (plus or 
minus) in NRC's total budget authority and adjustments based on changes 
in 10 CFR Part 170 fees as well as in the number of licensees paying 
the fees. The activities comprising the base FY 1995 annual fee and the 
FY 1995 additional charge (surcharge) are listed in paragraphs (b) and 
(c) for convenience purposes.
    Each operating power reactor would pay an annual fee of $2,980,000 
in FY 1998.
    Paragraph (e) would be revised to show the amount of the FY 1998 
annual fee for nonpower (test and research) reactors. The 1998 proposed 
fee of $57,300 is the same as the FY 1997 annual fee. 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(a)(2).
    Paragraph (f) would be revised to change fiscal year date 
references.

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. 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 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 annual fee of $1,800. A second or lower-
tier small entity fee of $400 is in place for small entities with gross 
annual receipts of less than $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 proposed because the small 
entity fees are not based on budgeted costs but are established at a 
level to reduce the impact of fees on small entities. The small entity 
fees are shown in the proposed rule for convenience.
    Section 171.16(d) would be revised to establish the FY 1998 annual 
fees for materials licensees, including Government agencies, licensed 
by the NRC. The proposed annual fees were determined by increasing the 
FY 1997 annual fees (prior to rounding) by 0.1 percent. After rounding, 
many of the FY 1998 annual fees for materials licensees are the same as 
the FY 1997 annual fees.
    The amount or range of the proposed FY 1998 annual fees for 
materials licenses is summarized as follows:

                  Materials Licenses--Annual Fee Ranges                 
------------------------------------------------------------------------
         Category of license                      Annual fees           
------------------------------------------------------------------------
Part 70--High enriched fuel facility.  $2,607,000                       
Part 70--Low enriched fuel facility..  $1,280,000                       
Part 40--UF6 conversion facility.....  $649,000                         
Part 40--Uranium recovery facilities.  $22,300 to $61,800               
Part 30--Byproduct Material Licenses.  $490 to $23,500\1\               
Part 71--Transportation of             1,000 to $78,900                 
 Radioactive Material.                                                  

[[Page 16052]]

                                                                        
Part 72--Independent Storage of Spent  $283,000                         
 Nuclear Fuel.                                                          
------------------------------------------------------------------------
\1\ Excludes the annual fee for a few military ``master'' materials     
  licenses of broad-scope issued to Government agencies, which is       
  $421,000.                                                             

    Footnote 1 of 10 CFR 171.16(d) would be 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/storage only licenses before October 1, 1997, and permanently 
ceased licensed activities entirely by September 30, 1997. All other 
licensees and approval holders who held a license or approval on 
October 1, 1997, are subject to the FY 1998 annual fees.
    Holders of new licenses issued during FY 1998 would be subject to 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 in effect on the anniversary date of the license. 
New materials licenses issued on or after April 1, 1998, will not be 
assessed an annual fee for FY 1998. Thereafter, the full annual fee is 
due and payable each subsequent fiscal year on the anniversary date of 
the license. Beginning June 11, 1996, (the effective date of the FY 
1996 final rule), affected materials licensees are subject to the 
annual fee in effect on the anniversary date of the license. The 
anniversary date of the materials license for annual fee purposes is 
the first day of the month in which the original license was issued.

Section 171.19  Payment

    Paragraph (a) would be revised to provide additional methods of 
payment and to clarify that payments must be made in U.S. funds.
    Paragraph (b) would be revised to give credit for partial payments 
made by certain licensees in FY 1998 toward their FY 1998 annual fees. 
The NRC anticipates that the first, second, and third quarterly 
payments for FY 1998 will have been made by operating power reactor 
licensees and some large materials licensees before the final rule 
becomes effective. Therefore, the NRC would credit payments received 
for those quarterly annual fee assessments toward the total annual fee 
to be assessed. The NRC would adjust the fourth quarterly invoice to 
recover the full amount of the revised annual fee or to make refunds, 
as necessary. 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) would be revised to update fiscal year references.
    As in FY 1997, the NRC would continue to 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 proposed rule applies 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. 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 
would continue to be billed in June of each year for the annual fee in 
effect on June 1. Materials licensees with anniversary dates in FY 1998 
before the effective date of the FY 1998 final rule will be billed 
during the anniversary month of the license and continue to pay annual 
fees at the FY 1997 rate in FY 1998. Those materials licensees with 
license anniversary dates falling on or after the effective date of the 
FY 1998 final rule would be billed, at the FY 1998 revised rates, 
during the anniversary month of their license and payment would be due 
on the date of the invoice.
    During the past seven 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).

IV. Environmental Impact: Categorical Exclusion

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

V. Paperwork Reduction Act Statement

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

VI. Regulatory Analysis

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

[[Page 16053]]

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 proposed amount of the FY 1998 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 1998 budget of 
$472.8 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 and the general fund related to commercial vitrification 
of waste at the Department of Energy Hanford, Washington site, and the 
pilot program pertaining to external regulation of the Department of 
Energy;
    (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).

VII. Regulatory Flexibility Analysis

    The NRC is required by the Omnibus Budget Reconciliation Act of 
1990 to recover approximately 100 percent of its budget authority 
through the assessment of user fees. OBRA-90 further requires that the 
NRC establish a schedule of charges that fairly and equitably allocates 
the aggregate amount of these charges among licensees.
    This proposed rule establishes the schedules of fees that are 
necessary to implement the Congressional mandate for FY 1998. The 
proposed rule would result a slight increase in the annual fees charged 
to some 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 proposed rule. The 
Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) was 
signed into law on March 29, 1996. The SBREFA requires all Federal 
agencies to prepare a written compliance guide for each rule for which 
the agency is required by 5 U.S.C. 604 to prepare a regulatory 
flexibility analysis. Therefore, in compliance with the law, Attachment 
1 to the Regulatory Flexibility Analysis (Appendix A to this document) 
is the small entity compliance guide for FY 1998.

VIII. Backfit Analysis

    The NRC has determined that the backfit rule, 10 CFR 50.109, does 
not apply to this proposed rule and that a backfit analysis is not 
required for this proposed rule. The backfit analysis is not required 
because these proposed amendments do not require the modification of or 
additions to systems, structures, components, or 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 2

    Administrative practice and procedure, Antitrust, Byproduct 
material, Classified information, Environmental protection, Nuclear 
materials, Nuclear power plants and reactors, Penalties, Sex 
discrimination, Source material, Special nuclear material, Waste 
treatment and disposal.

10 CFR Part 140

    Criminal penalties, Extraordinary nuclear occurrence, Insurance, 
Intergovernmental relations, Nuclear materials, Nuclear power plants 
and reactors, Reporting and record keeping requirements.

10 CFR Part 170

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

10 CFR Part 171

    Annual charges, Byproduct material, Holders of certificates, 
registrations, approvals, Intergovernmental relations, Non-payment 
penalties, Nuclear materials, Nuclear power plants and reactors, Source 
material, Special nuclear material.

    For the reasons set out in the preamble and under the authority of 
the Atomic Energy Act of 1954, as amended, and 5 U.S.C. 553, the NRC is 
proposing to adopt the following amendments to 10 CFR Parts 2, 140, 170 
and 171.

PART 2--RULES OF PRACTICE FOR DOMESTIC LICENSING PROCEEDINGS AND 
ISSUANCE OF ORDERS

    1. The authority citation for Part 2 continues to read as follows:

    Authority: Secs. 161, 181, 68 Stat. 948, 953, as amended (42 
U.S.C. 2201, 2231); sec. 191, as amended, Pub. L. 87-615, 76 Stat. 
409 (42 U.S.C. 2241); sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 
5841); 5 U.S.C. 552.
    Section 2.101 also issued under secs. 53, 62, 63, 81, 103, 104, 
105, 68 Stat. 930, 932, 933, 935, 936, 937, 938, as amended (42 
U.S.C. 2073, 2092, 2093, 2111, 2133, 2134, 2135); sec. 114(f), Pub. 
L. 97-425, 96 Stat. 2213, as amended (42 U.S.C. 10134(f)); sec. 102, 
Pub. L. 91-190, 83 Stat. 853, as amended (42 U.S.C. 4332); sec. 301, 
88 Stat. 1248 (42 U.S.C. 5871). Sections 2.102, 2.103, 2.104, 2.105, 
2.721 also issued under secs. 102, 103, 104, 105, 183, 189, 68 Stat. 
936, 937, 938, 954, 955, as amended (42 U.S.C. 2132, 2133, 2134, 
2135, 2233, 2239). Section 2.105 also issued under Pub. L. 97-415, 
96 Stat. 2073 (42 U.S.C. 2239). Sections 2.200-2.206 also issued 
under secs. 161 b, i, o, 182, 186, 234, 68 Stat. 948-951, 955, 83, 
Stat. 444, as

[[Page 16054]]

amended (42 U.S.C. 2201 (b), (i), (o), 2236, 2282); sec. 206, 88 
Stat. 1246 (42 U.S.C. 5846). Section 2.205(j) also issued under Pub. 
L. 101-410, 104 Stat. 890, as amended by section 31001(s), Pub. L. 
104-134, 110 Stat. 1321-373 (28 U.S.C. 2461 note). Sections 2.600-
2.606 also issued under sec. 102, Pub. L. 91-190, 83 Stat. 853, as 
amended (42 U.S.C. 4332). Sections 2.700a, 2.719 also issued under 5 
U.S.C. 554. Sections 2.754, 2.760, 2.770, 2.780 also issued under 5 
U.S.C. 557. Section 2.764 also issued under secs. 135, 141, Pub. L. 
97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161). Section 2.790 
also issued under sec. 103, 68 Stat. 936, as amended (42 U.S.C. 
2133) and 5 U.S.C. 552. Sections 2.800 and 2.808 also issued under 5 
U.S.C. 553. Section 2.809 also issued under 5 U.S.C. 553 and sec. 
29, Pub. L. 85-256, 71 Stat. 579, as amended (42 U.S.C. 2039). 
Subpart K also issued under sec. 189, 68 Stat. 955 (42 U.S.C. 2239); 
sec. 134, Pub. L. 97-425, 96 Stat. 2230 (42 U.S.C. 10154). Subpart L 
also issued under sec. 189, 68 Stat. 955 (42 U.S.C. 2239). Appendix 
A also issued under sec. 6, Pub. L. 91-560, 84 Stat. 1473 (42 U.S.C. 
2135). Appendix B also issued under sec. 10, Pub. L. 99-240, 99 
Stat. 1842 (42 U.S.C. 2021b et seq.).

    2. In Sec. 2.205, paragraph (i) is revised to read as follows:


Sec. 2.205  Civil penalties.

* * * * *
    (i) Except when payment is made after compromise or mitigation by 
the Department of Justice or as ordered by a court of the United 
States, following reference of the matter to the Attorney General for 
collection, payment of civil penalties imposed under Section 234 of the 
Act are to be made payable to the U.S. Nuclear Regulatory Commission, 
in U.S. funds, by check, draft, money order, credit card, or electronic 
funds transfer such as Automated Clearing House (ACH) using Electronic 
Data Interchange (EDI). Federal agencies may also make payment by the 
On-Line Payment and Collections System (OPAC's). All payments are to be 
made in accordance with the specific payment instructions provided with 
Notices of Violation that propose civil penalties and Orders Imposing 
Civil Monetary Penalties.
* * * * *

PART 140--FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY 
AGREEMENTS

    3. The authority citation for Part 140 continues to read as 
follows:

    Authority: Secs. 161, 170, 68 Stat. 948, 71 Stat. 576, as 
amended (42 U.S.C. 2201, 2210); secs. 201, as amended, 202, 88 Stat. 
1242, as amended, 1244 (42 U.S.C. 5841, 5842).

    4. In Sec. 140.7, paragraphs (a) and (c) are revised and paragraph 
(d) is added to read as follows:


Sec. 140.7  Fees.

    (a)(1) Each reactor licensee shall pay a fee to the Commission 
based on the following schedule:
    (i) For indemnification from $500 million to $400 million 
inclusive, a fee of $30 per year per thousand kilowatts of thermal 
capacity authorized in the license;
    (ii) For indemnification from $399 million to $300 million 
inclusive, a fee of $24 per year per thousand kilowatts of thermal 
capacity authorized in the license.
    (iii) For indemnification from $299 million to $200 million 
inclusive, a fee of $18 per year per thousand kilowatts of thermal 
capacity authorized in the license;
    (iv) For indemnification from $199 million to $100 million 
inclusive, a fee of $12 per year per thousand kilowatts of thermal 
capacity authorized in the license;
    (2) No fee will be less than $100 per annum for any nuclear 
reactor. This fee is due for the period beginning with the date on 
which the applicable indemnity agreement is effective. The various 
levels of indemnity fees are set forth in the schedule in this 
paragraph. The amount of indemnification for determining indemnity fees 
will be computed by subtracting from the statutory limit of liability 
the amount of financial protection required of the licensee. In the 
case of licensees subject to the provision of Sec. 140.11(a), this 
total amount will be the amount as determined by the Commission, of the 
financial protection available to licensees at the close of the 
calendar year preceding the one in which the fee becomes due. For those 
instances in which a certified financial statement is provided as a 
guarantee of payment of deferred premiums in accordance with 
Sec. 140.21(e), a fee of $1,000 or the indemnity fee, whichever is 
greater, is required.
* * * * *
    (c) Each person licensed to possess and use plutonium in a 
plutonium processing and fuel fabrication plant shall pay to the 
Commission a fee of $5,000 per year for indemnification. This fee is 
due for the period beginning with the date on which the applicable 
indemnity agreement is effective.
    (d) Indemnity fee payments, made payable to the U.S. Nuclear 
Regulatory Commission, are to be made in U.S. funds by check, draft, 
money order, credit card, or electronic funds transfer such as ACH 
(Automated Clearing House) using EDI (Electronic Data Interchange). 
Federal agencies may also make payments by the On-Line Payment and 
Collections System (OPAC's). Where specific payment instructions are 
provided on the invoices, payment should be made accordingly, e.g. 
invoices of $5,000 or more should be paid via ACH through NRC's Lockbox 
Bank at the address indicated on the invoice. Credit card payments 
should be made up to the limit established by the credit card bank, in 
accordance with specific instructions provided with the invoices, to 
the Lockbox Bank designated for credit card payments.

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

    5. 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).

    6. Section 170.12, paragraphs (g) and (h) are revised to read as 
follows:


Sec. 170.12  Payment of fees.

* * * * *
    (g) Inspection fees. (1) Inspection fees will be assessed to 
recover full cost for each resident inspector assigned to a specific 
plant or facility. The fees assessed will be based on the number of 
hours that each inspector assigned to the plant or facility is in an 
offical duty status (i.e., all time in a non-leave status will be 
billed), and the hours will be billed at the appropriate hourly rate 
established in 10 CFR 170.20.
    (2) Fees for all inspections subject to full cost recovery will be 
assessed on a per inspection basis for costs incurred up to 30 days 
after issuance of the inspection report. Inspection costs include 
preparation time, time on site, documentation time, and follow-up 
activities and any associated contractural service costs, but exclude 
the time involved in the processing and issuance of a notice of 
violation or civil penalty. Resident inspector time related to a 
specific inspection will be assessed in accordance with paragraph 
(g)(1) of this section, and will not be reflected in the costs billed 
for the specific inspection.
    (3) Fees for resident inspectors' time and for specific inspections 
subject to full cost recovery will be billed on a quarterly basis and 
are payable upon notification by the Commission.
    (h) Method of payment. License fee payments, made payable to the 
U.S. Nuclear Regulatory Commission, are to

[[Page 16055]]

be made in U.S. funds by check, draft, money order, credit card, or 
electronic funds transfer such as ACH (Automated Clearing House) using 
EDI (Electronic Data Interchange). Where specific payment instructions 
are provided on the invoices to applicants and licensees for services 
rendered, payment should be made accordingly, e.g. invoice of $5,000 or 
more should be paid via ACH through NRC's Lockbox Bank at the address 
indicated on the invoice. Credit card payments should be made up to the 
limit established by the credit card bank, in accordance with specific 
instructions provided with the invoices, to the Lockbox Bank designated 
for credit card payments. Unbilled application and amendment fees are 
to be paid in a similar manner using the above methods. Applicants and 
licensees should contact the License Fee and Accounts Receivable Branch 
at 301-415-7554 to obtain specific written instructions for making 
electronic payments and credit card payments.
* * * * *
    7. Section 170.20 is revised to read as follows:


Sec. 170.20  Average cost per professional staff-hour.

    Fees for permits, licenses, amendments, renewals, special projects, 
Part 55 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             $124 per hour.                 
 Activities).                                                           
Nuclear Materials and Nuclear Waste      $121 per hour.                 
 Program (Sec. 170.31 Activities).                                      
                                                                        

    8. 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.

                        Schedule of Facility Fees                       
                     [See footnotes at end of table]                    
------------------------------------------------------------------------
            Facility categories and type of fees                Fees12  
------------------------------------------------------------------------
                                                                        
*                  *                  *                  *              
                  *                  *                  *               
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.......................        7,900
            Amendment......................................       $7,900
        2. Application for export of reactor and other                  
         components requiring Executive Branch review only,             
         for example, those actions under 10 CFR                        
         110.41(a)(1)-(8).                                              
            Application-new license........................        4,800
            Amendment......................................        4,800
        3. Application for export of components requiring               
         foreign government assurances only.                            
            Application--new license.......................        2,800
            Amendment......................................        2,800
        4. Application for export of facility components                
         and equipment not requiring Commissioner review,               
         Executive Branch review, or foreign government                 
         assurances.                                                    
            Application--new license.......................        1,200
            Amendment......................................        1,200
        5. Minor amendment of any export or import license              
         to extend the expiration date, change domestic                 
         information, or make other revisions which do not              
         require in-depth analysis or review.                           
            Amendment......................................         180 
------------------------------------------------------------------------
\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.                                                 


[[Page 16056]]

* * * * *
    9. Section 170.31 is revised to read as follows:


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

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

                       Schedule of Materials Fees                       
                     [See footnotes at end of table]                    
------------------------------------------------------------------------
   Category of materials licenses and type of                           
                    fees\1\                               Fee23         
------------------------------------------------------------------------
1. Special nuclear material:                                            
    A. Licenses for possession and use of 200                           
     grams or more of plutonium in unsealed                             
     form or 350 grams or more of contained U-                          
     235 in unsealed form or 200 grams or more                          
     of U-233 in unsealed form. This includes                           
     applications to terminate licenses as well                         
     as licenses authorizing possession only:                           
        License, Renewal, Amendment............  Full Cost.             
        Inspections............................  Full Cost.             
    B. Licenses for receipt and storage of                              
     spent fuel at an independent spent fuel                            
     storage installation (ISFSI):                                      
        License, Renewal, Amendment............  Full Cost.             
        Inspections............................  Full Cost.             
    C. Licenses for possession and use of                               
     special nuclear material in sealed sources                         
     contained in devices used in industrial                            
     measuring systems, including x-ray                                 
     fluorescence analyzers:\4\                                         
        Application--New license...............  $560.                  
        Amendment..............................  $380.                  
    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...............  $750.                  
        Amendment..............................  $290.                  
    E. Licenses or certificates for                                     
     construction and operation of a uranium                            
     enrichment facility.                                               
        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...............  $120.                  
        Amendment..............................  $280.                  
    C. All other source material licenses:                              
        Application--New license...............  $3,600.                
        Amendment..............................  $560.                  
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...............  $3,800.                
        Amendment..............................  $530.                  
    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...............  $1,500.                
        Amendment..............................  $560.                  
    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 does not apply to licenses                           
     issued to nonprofit educational                                    
     institutions whose processing or                                   
     manufacturing is exempt under 10 CFR                               
     170.11(a)(4). These licenses are covered                           
     by fee Category 3D:                                                
        Application--New license...............  $6,800.                
        Amendment..............................  $630.                  

[[Page 16057]]

                                                                        
    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 includes                         
     licenses issued pursuant to Secs. 32.72,                           
     32.73, and/or 32.74 of this chapter to                             
     nonprofit educational institutions whose                           
     processing or manufacturing is exempt                              
     under 10 CFR 170.11(a)(4):                                         
        Application--New license...............  $1,900.                
        Amendment..............................  $420.                  
    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...............  $1,100.                
        Amendment..............................  $380.                  
    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...............  $1,900.                
        Amendment..............................  $440.                  
    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...............  $4,500.                
        Amendment..............................  $740.                  
    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...............  $2,700.                
        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..............................  $1,000.                
    J. Licenses issued pursuant to Subpart B of                         
     Part 32 of this chapter to distribute                              
     items containing byproduct material that                           
     require sealed source and/or device review                         
     to persons generally licensed under Part                           
     31 of this chapter, except specific                                
     licenses authorizing redistribution of                             
     items that have been authorized for                                
     distribution to persons generally licensed                         
     under Part 31 of this chapter:                                     
        Application--New license...............  $1,700.                
        Amendment..............................  $300.                  
    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...............  $1,000.                
        Amendment..............................  $340.                  
    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...............  $5,400.                
        Amendment..............................  $760.                  
    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...............  $1,800.                
        Amendment..............................  $620.                  
    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...............  $2,000.                
        Amendment..............................  $500.                  
    O. Licenses for possession and use of                               
     byproduct material issued pursuant to Part                         
     34 of this chapter for industrial                                  
     radiography operations:                                            
        Application--New license...............  $4,300.                
        Amendment..............................  $680.                  
    P. All other specific byproduct material                            
     licenses, except those in Categories 4A                            
     through 9D:                                                        
        Application--New license...............  $730.                  
        Amendment..............................  $340.                  
4. Waste disposal and processing:                                       

[[Page 16058]]

                                                                        
    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...............  $2,500.                
        Amendment..............................  $520.                  
    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...............  $2,200.                
        Amendment..............................  $220.                  
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...............  $3,400.                
        Amendment..............................  $820.                  
    B. Licenses for possession and use of                               
     byproduct material for field flooding                              
     tracer studies:                                                    
        License, renewal, amendment............  Full Cost.             
6. Nuclear laundries:                                                   
    A. Licenses for commercial collection and                           
     laundry of items contaminated with                                 
     byproduct material, source material, or                            
     special nuclear material:                                          
        Application--New license...............  $6,400.                
        Amendment..............................  $1,000.                
7. Medical licenses:                                                    
    A. Licenses issued pursuant to Parts 30,                            
     35, 40, and 70 of this chapter for human                           
     use of byproduct material, source                                  
     material, or special nuclear material in                           
     sealed sources contained in teletherapy                            
     devices:                                                           
        Application--New license...............  $3,500.                
        Amendment..............................  $390.                  
    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...............  $3,800.                
        Amendment..............................  $710                   
    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...............  $1,800                 
        Amendment..............................  $450                   
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...............  $570.                  
        Amendment..............................  $400.                  
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...............  $3,600.                
        Amendment--each device.................  $590.                  
    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...............  $2,100.                
        Amendment--each device.................  $1,100.                
    C. Safety evaluation of sealed sources                              
     containing byproduct material, source                              
     material, or special nuclear material,                             
     except reactor fuel, for commercial                                
     distribution:                                                      
        Application--each source...............  $910.                  
        Amendment--each source.................  $610.                  
    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...............  $460.                  
        Amendment--each source.................  $160.                  
10. Transportation of radioactive material:                             
    A. Evaluation of casks, packages, and                               
     shipping containers:                                               
        Approval, Renewal, Amendment...........  Full Cost.             
        Inspections............................  Full Cost.             

[[Page 16059]]

                                                                        
    B. Evaluation of 10 CFR Part 71 quality                             
     assurance programs:                                                
        Application--Approval..................  $340.                  
        Amendment..............................  $620.                  
        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         Full Cost.             
     storage cask Certificate of Compliance.                            
    C. Inspections related to storage of spent   Full Cost.             
     fuel under Sec. 72.210 of this chapter.                            
14. Byproduct, source, or special nuclear                               
 material licenses and other approvals                                  
 authorizing decommissioning, decontamination,                          
 reclamation, or site restoration activities                            
 pursuant to 10 CFR Parts 30, 40, 70, and 72 of                         
 this chapter:                                                          
        Approval, Renewal, Amendment...........  Full Cost.             
        Inspections............................  Full Cost.             
15. Import and Export licenses:                                         
    Licenses issued pursuant to 10 CFR Part 110                         
     of this chapter for the import and export                          
     only of special nuclear material, source                           
     material, 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              $7,900.                
            Amendment                            $7,900.                
    B. Application for export or import of                              
     special nuclear material, source material,                         
     tritium and other byproduct material,                              
     heavy water, or nuclear grade graphite,                            
     including radioactive waste, requiring                             
     Executive Branch review but not                                    
     Commissioner review. This category                                 
     includes application for the export or                             
     import of radioactive waste involving a                            
     single form of waste from a single class                           
     of generator in the exporting country to a                         
     single treatment, storage and/or disposal                          
     facility in the receiving country:                                 
            Application-new license              $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              $2,800.                
            Amendment                            $2,800.                
        D. Application for export or import of                          
         other materials, including radioactive                         
         waste, not requiring Commissioner                              
         review, Executive Branch review, or                            
         foreign government assurances under                            
         the Atomic Energy Act. This category                           
         includes application for export or                             
         import of radioactive waste where the                          
         NRC has previously authorized the                              
         export or import of the same form of                           
         waste to or from the same or similar                           
         parties, requiring only confirmation                           
         from the receiving facility and                                
         licensing authorities that the                                 
         shipments may proceed according to                             
         previously agreed understandings and                           
         procedures:                                                    
            Application-new license              $1,200.                
            Amendment                            $1,200.                
        E. Minor amendment of any export or                             
         import license to extend the                                   
         expiration date, change domestic                               
         information, or make other revisions                           
         which do not require in-depth                                  
         analysis, review, or consultations                             
         with other agencies or foreign                                 
         governments.                                                   
            Amendment                            $180.                  
16. Reciprocity:                                                        
    Agreement State licensees who conduct                               
     activities 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.              
(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.                                            

[[Page 16060]]

                                                                        
(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.              
\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 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, safeguards, or       
  environmental issue, or to assist NRC in developing a rule, regulatory
  guide, policy statement, generic letter, or bulletin; or              
(c) As a means of exchanging information between industry organizations 
  and the NRC for the purpose of supporting 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

    10. 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).

    11. Section 171.13 is revised to read as follows:


Sec. 171.13  Notice.

    The annual fees applicable to an operating reactor and to a 
materials licensee, including a Government agency licensed by the NRC, 
subject to this part and calculated in accordance with Secs. 171.17 and 
171.16, will be published as a notice in the Federal Register as soon 
as is practicable but no later than the third quarter of the fiscal 
year. The annual fees will become due and payable to the NRC in 
accordance with Sec. 171.19 except as provided in Sec. 171.17. 
Quarterly payments of the annual fees of $100,000 or more will continue 
during the fiscal year and be based on the applicable annual fees as 
shown in Secs. 171.15 and 171.16 of the regulations until a notice 
concerning the revised amount of the fees for the fiscal year is 
published by the NRC. If the NRC is unable to publish a final fee rule 
that becomes effective during the current fiscal year, then fees would 
be assessed based on the rates in effect for the previous fiscal year.
    12. In Sec. 171.15, paragraphs (b), (c) introductory text, (c)(1), 
(c)(2), (e), and (f) are revised to read as follows:


Sec. 171.15  Annual Fees: Reactor operating licenses.

* * * * *
    (b) The FY 1998 annual fee for each operating power reactor which 
must be collected by September 30, 1998, is $2,980,000. This fee has 
been determined by adjusting the FY 1997 annual fee, (prior to 
rounding) upward by 0.1 percent. In the FY 1995 final rule, the NRC 
stated it would stabilize annual fees by adjusting the annual fees only 
by the percentage change (plus or minus) in NRC's total budget 
authority and adjustments based on changes in 10 CFR Part 170 fees as 
well as on the number of licensees paying the fees. The first 
adjustment to the annual fees using this method occurred in FY 1996 
when all annual fees were decreased 6.5 percent below the FY 1995 
annual fees. The FY 1997 annual fees were also determined by using this 
method. The FY 1997 annual fees increased 8.4 percent above the FY 1996 
annual fees. 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:

[[Page 16061]]

    (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.
* * * * *
    (e) The FY 1998 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.............................................    $57,300
Test reactor.................................................    $57,300
                                                                        

    (f) For each fiscal year, annual fees for operating reactors will 
be calculated and assessed in accordance with Sec. 171.13.
    13. 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 1998 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 1998, the maximum annual fee a small entity is required 
to pay is $1,800 for each category applicable to the license(s).
    (d) The FY 1998 annual fees for materials licensees and holders of 
certificates, registrations or approvals subject to fees under this 
section are shown below. The FY 1998 annual fees, which must be 
collected by September 30, 1998, have been determined by adjusting 
upward the FY 1997 exact annual fees (prior to rounding), by 0.1 
percent. As a result of rounding, the FY 1998 annual fee for some fee 
categories is the same as the FY 1997 annual fee. In the FY 1995 final 
rule, the NRC stated it would stabilize annual fees by adjusting the 
annual fees only by the percentage change (plus or minus) in NRC's 
total budget authority and adjustments based on changes in 10 CFR Part 
170 fees as well as on the number of licensees paying the fees. The 
first adjustment to the annual fees using this method occurred in FY 
1996, when all annual fees were decreased 6.5 percent below the FY 1995 
annual fees. The FY 1997 annual fees were also determined by using this 
method. The FY 1997 annual fees were increased 8.4 percent above the FY 
1996 annual fees. 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 for convenience in paragraph (e) of this 
section.

   Schedule of Materials Annual Fees and Fees for Government Agencies   
                             Licensed by NRC                            
                     [See footnotes at end of table]                    
------------------------------------------------------------------------
             Category of materials licenses               Annual fees123
------------------------------------------------------------------------
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.....................      $2,607,000
            Nuclear Fuel Services SNM-124...............       2,607,000
        (b) Low Enriched Uranium in Dispersible Form                    
         Used for Fabrication of Power Reactor Fuel:                    
            Combustion Engineering (Hematite) SNM-33....       1,280,000
            General Electric Company SNM-1097...........       1,280,000
            Siemens Nuclear Power SNM-1227..............       1,280,000
            Westinghouse Electric Company SNM-1107......       1,280,000
    (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...................         509,000
        (b) All Others:                                                 
            General Electric SNM-960....................         346,000
    B. Licenses for receipt and storage of spent fuel at                
     an independent spent fuel storage installation                     
     (ISFSI)............................................         283,000
    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.............           1,300

[[Page 16062]]

                                                                        
    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)............................................           3,100
    E. Licenses or certificates for the operation of a                  
     uranium enrichment facility........................       2,607,000
2. Source material:                                                     
    A.(1) Licenses for possession and use of source                     
     material for refining uranium mill concentrates to                 
     uranium hexafluoride...............................         649,000
        (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\.......................          61,800
            Class II facilities\4\......................          34,900
            Other facilities\4\.........................          22,300
        (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)....................          45,400
        (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)...............................           8,000
    B. Licenses which authorize only the possession, use                
     and/or installation of source material for                         
     shielding..........................................             490
    C. All other source material licenses...............           8,700
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............................          16,700
    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.......................................           5,600
    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. This category does                   
     not apply to licenses issued to nonprofit                          
     educational institutions whose processing or                       
     manufacturing is exempt under 10 CFR 171.11(a)(1).                 
     These licenses are covered by fee Category 3D......          11,200
    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 includes licenses                
     issued pursuant to Secs. 32.72, 32.73 and 32.74 of                 
     this chapter to nonprofit educational institutions                 
     whose processing or manufacturing is exempt under                  
     10 CFR 171.11(a)(1). This category also includes                   
     the possession and use of source material for                      
     shielding authorized pursuant to Part 40 of this                   
     chapter when included on the same license..........           4,400
    E. Licenses for possession and use of byproduct                     
     material in sealed sources for irradiation of                      
     materials in which the source is not removed from                  
     its shield (self-shielded units)...................           3,200
    F. Licenses for possession and use of less than                     
     10,000 curies of byproduct material in sealed                      
     sources for irradiation of materials in which the                  
     source is exposed for irradiation purposes. This                   
     category also includes underwater irradiators for                  
     irradiation of materials in which the source is not                
     exposed for irradiation purposes...................           3,800
    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...................          19,700
    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............................................           5,000
    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....................................           8,900
    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 terms that                  
     have been authorized for distribution to persons                   
     generally licensed under Part 31 of this chapter...           3,800
    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.............           3,300
    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......          12,300
    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..............           5,500
    N. Licenses that authorize services for other                       
     licensees, except:                                                 

[[Page 16063]]

                                                                        
        (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..................           6,100
    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.......................................          14,100
    P. All other specific byproduct material licenses,                  
     except those in Categories 4A through 9D...........           1,700
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\ 102,000
    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............................          14,500
    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.........................           7,700
5. Well logging:                                                        
    A. Licenses for possession and use of byproduct                     
     material, source material, and/or special nuclear                  
     material for well logging, well surveys, and tracer                
     studies other than field flooding tracer studies...           8,200
    B. Licenses for possession and use of byproduct                     
     material for field flooding tracer studies.........          13,200
6. Nuclear laundries:                                                   
    A. Licenses for commercial collection and laundry of                
     items contaminated with byproduct material, source                 
     material, or special nuclear material..............          14,700
7. Medical licenses:                                                    
    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.....................          10,300
    B. Licenses of broad scope issued to medical                        
     institutions or two or more physicians pursuant to                 
     Parts 30, 33, 35, 40, and 70 of this chapter                       
     authorizing research and development, including                    
     human use of byproduct material except licenses for                
     byproduct material, source material, or special                    
     nuclear material in sealed sources contained in                    
     teletherapy devices. This category also includes                   
     the possession and use of source material for                      
     shielding when authorized on the same license.\9\..          23,500
    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\.................           4,700
8. Civil defense:                                                       
    A. Licenses for possession and use of byproduct                     
     material, source material, or special nuclear                      
     material for civil defense activities..............           1,800
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.......................................           7,200
    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.............           3,700
    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...           1,600
    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.....................             780
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\NA
        Other Casks.....................................          \6\N/A
    B. Approvals issued of 10 CFR Part 71 quality                       
     assurance programs:                                                
        Users and Fabricators...........................          78,900
        Users...........................................           1,000
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......................................         283,000
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                                                   \6\N/A
17. Master materials licenses of broadscope issued to                   
 Government agencies                                             421,000
18. Department of Energy:                                               
    A. Certificates of Compliance.......................   \10\1,169,000

[[Page 16064]]

                                                                        
    B. Uranium Mill Tailing Radiation Control Act                       
     (UMTRCA) activities................................      1,966,000 
------------------------------------------------------------------------
\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, 1997, and permanently ceased licensed activities entirely  
  by September 30, 1997. 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\Each fiscal year, fees for these materials licenses will be          
  calculated and assessed in accordance with Sec. 171.13 and will be    
  published in the Federal Register for notice and comment.             
\4\A Class I license includes mill licenses issued for the extraction of
  uranium from uranium ore. A Class II license includes solution mining 
  licenses (in-situ and heap leach) issued for the extraction of uranium
  from uranium ores including research and development licenses. An     
  ``other'' license includes licenses for extraction of metals, heavy   
  metals, and rare earths.                                              
\5\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, 10 CFR Parts 71 and 72           
  Certificates of Compliance, and special reviews, such as topical      
  reports, are not assessed an annual fee because the generic costs of  
  regulating these activities are primarily attributable to 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.                                         

    (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 licensing and inspection fees 
under 10 CFR Part 170 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.
* * * * *
    14. Section 171.19 is revised to read as follows:


Sec. 171.19  Payment.

    (a) Method of payment. Annual fee payments, made payable to the 
U.S. Nuclear Regulatory Commission, are to be made in U.S. funds by 
check, draft, money order, credit card, or electronic funds transfer 
such as ACH (Automated Clearing House) using EDI (Electronic Data 
Interchange). Federal agencies may also make payment by the On-line 
Payment and Collection System (OPAC's). Where specific payment 
instructions are provided on the invoices to applicants and licensees, 
payment should be made accordingly, e.g. invoices of $5,000 or more 
should be paid via ACH through NRC's Lockbox Bank at the address 
indicated on the invoice. Credit card payments should be made up to the 
limit established by the credit card bank, in accordance with specific 
instructions provided with the invoices, to the Lockbox Bank designated 
for credit card payments.
    (b) For FY 1998, the Commission will adjust the fourth quarterly 
invoice for operating power reactors and certain materials licensees to 
recover the full amount of the revised annual fee. If the amounts 
collected in the first three quarters exceed the amount of the revised 
annual fee, the overpayment will be refunded. All other licensees, or 
holders of a certificate, registration, or approval of a QA program 
will be sent a bill for the full amount of the annual fee on the 
anniversary date of the license. 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) FY 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 FY 1998, annual fees of less than $100,000 must be paid as 
billed by the NRC. As established in FY 1996, materials license annual 
fees that are less than $100,000 are billed on the anniversary date of 
the license. The materials licensees that are billed on the anniversary 
date of the license are those covered by fee categories 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. Beginning June 11, 1996, 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. Materials licenses subject to the 
annual fee that are terminated during the fiscal year but prior to the 
anniversary month of the license will be billed upon termination for 
the fee in effect at the time of the billing. New materials licenses 
subject to the annual fee will be billed in the month the license is 
issued or in the next available monthly billing for the fee in effect 
on the anniversary date of the license. Thereafter, annual fees for new 
licenses will be assessed in the anniversary month of the license.


[[Page 16065]]


    Dated at Rockville, Maryland, this 24th day of March, 1998.

    For the Nuclear Regulatory Commission.
Jesse L. Funches,
Chief Financial Officer.

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

I. Background

    The Regulatory Flexibility Act of 1980, as amended, (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, FY 1996 
and FY 1997 fee rules and is continuing their use in this FY 1998 
proposed rule. The small entity fee categories in Sec. 171.16(c) of 
this proposed 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 1998 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 about $445.3 million; for 
FY 1992, about $492.5 million; for FY 1993 about $518.9 million; for 
FY 1994 about $513 million; for FY 1995 about $503.6 million; for FY 
1996 about $462.3 million; for FY 1997 about $462.3 million; and the 
amount to be collected for FY 1998 is approximately $454.8 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), in FY 1995 (60 FR 32218; June 20, 1995), in FY 1996 (61 FR 
16203; April 12, 1996), and in FY 1997 (62 FR 29194; May 29,1997) 
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 1991-1997.
    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 adjustments as well as an adjustment for the number 
of licensees paying the fees. As a result, the NRC is proposing to 
establish the FY 1998 annual fees for all licensees at 0.1 percent 
above the FY 1997 exact (prior to rounding) annual fees. Based on 
this small change, the proposed FY 1998 annual fee (rounded) for 
many fee categories are the same as the FY 1997 annual fees. Because 
there has not been a substantial change in the NRC budget or in the 
magnitude of a specific budget allocation to a class of licensees, 
the NRC intends to continue to stabilize annual fees by following 
the same method used for FY 1996 and FY 1997 to establish the FY 
1998 annual fees.
    Public Law 104-121, the Contract with America Advancement Act of 
1996, was signed into law on March 29, 1996. Title III of the law is 
entitled the Small Business Regulatory Enforcement Fairness Act of 
1996 (SBREFA). The SBREFA has two purposes. The first is to reduce 
regulatory burdens imposed by Federal agencies on small businesses, 
nonprofit organizations and governmental jurisdictions. The second 
is to provide the Congress with the opportunity to review agency 
rules before they go into effect. Under this legislation, the NRC 
fee rule, published annually, is considered a ``major'' rule and 
therefore must be reviewed by Congress and the Comptroller General 
before the rule becomes effective. Section 312 of the Act provides 
that for each rule for which an agency prepared a final regulatory 
flexibility analysis, the agency shall prepare a guide to assist 
small entities in complying with the rule. The NRC's guide is 
Attachment 1 to Appendix A of this proposed rule. A regulatory 
flexibility analysis is prepared for the proposed and final NRC fee 
rules as implemented by 10 CFR Part 170 and 171 of the Commission's 
regulations. Therefore, in compliance with the law, Attachment 1 to 
this Regulatory Flexibility Analysis is the small entity compliance 
guide for FY 1998.

II. Impact on Small Entities

    The comments received on the proposed FY 1991-1997 fee rule 
revisions and the small entity certifications received in response 
to the final FY 1991-1997 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 20 percent (approximately 1,400 
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-

[[Page 16066]]

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.

    Since FY 1991 when annual fees were first established, 
approximately 3,000 license, approval, and registration terminations 
have been requested. Although some of these terminations were 
requested because the license was no longer needed or licenses or 
registrations could be combined, indications are that other 
termination requests were due to the economic impact of the fees.
    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), in the FY 1995 rule (60 FR 32218; June 20, 1995), in the FY 
1996 rule (61 FR 16203; April 12, 1996), and in the FY 1997 rule (62 
FR 29194; May 29, 1997). 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 1991-1997 evaluations of 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 will continue for FY 1998, 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 
1998, 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 (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 proposed rule for FY 1998, 
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 1998 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 significantly. 
Therefore, the NRC is continuing, for FY 1998, 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 1992-1997, 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 impact 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 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 1991-1997 rules remain valid for 
this proposed rule for FY 1998. In compliance with Public Law 104-
121, a small entity compliance guide has been prepared by NRC and is 
shown as Attachment 1 to this Regulatory Flexibility Analysis.

Attachment 1 to Appendix A

U.S. Nuclear Regulatory Commission, Small Entity Compliance Guide, 
Fiscal Year 1998

Contents

Introduction
NRC Definition of Small Entity
NRC Small Entity Fees
Instructions for Completing NRC Form 526

Introduction

    The Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA) requires all Federal agencies to prepare a written guide 
for each ``major'' final rule as defined by the Act. The NRC's fee 
rule, published annually to comply with the Omnibus Budget 
Reconciliation Act of 1990 (OBRA-90) which requires the NRC to 
collect approximately 100 percent of its budget authority each year 
through fees, meets the thresholds for being considered a ``major'' 
rule under the SBREFA. Therefore, in compliance with the law, this 
small entity compliance guide has been prepared for FY 1998. The 
purpose of this guide is to assist small entities in complying with 
the NRC fee rule.
    This guide is designed to aid NRC materials licensees. The 
information provided in this guide may be used by licensees to 
determine whether they qualify as a small entity under NRC 
regulations and are therefore eligible to pay reduced FY 1998 annual 
fees assessed under 10 CFR Part 171. The NRC, in compliance with the 
Regulatory Flexibility Act of 1980 (RFA), has established separate 
annual fees for those materials licensees who meet the NRC's size 
standards for small entities. These size standards, developed in 
consultation with the Small

[[Page 16067]]

Business Administration, were revised by the NRC and became 
effective on May 11, 1995. The small entity size standards are found 
at 10 CFR 2.810 of the NRC's regulations. To comply with the RFA, 
the NRC has established two tiers of small-entity fees. These fees 
are found at 10 CFR 171.16(c) of the NRC's fee regulations.
    Licensees who meet NRC's size standards for a small entity must 
complete NRC Form 526 in order to qualify for the reduced annual 
fee. NRC Form 526 will accompany each annual fee invoice mailed to 
materials licensees. The completed form, along with the appropriate 
small entity fee and the payment copy of the invoice, should be 
mailed to the U.S. Nuclear Regulatory Commission, License Fee and 
Accounts Receivable Branch, P.O. Box 954514, St. Louis, MO 63195-
4514.

NRC Definition of Small Entity

    The NRC, in consultation with the Small Business Administration, 
has defined a small entity for purposes of compliance with its 
regulations. The definition is codified in NRC's regulations at 10 
CFR 2.810. Under the NRC regulation, a small entity is:
    1. Small business--a for-profit concern that provides a service 
or a concern not engaged in manufacturing with average gross 
receipts of $5 million or less over its last 3 completed fiscal 
years;
    2. Manufacturing industry--a manufacturing concern with an 
average number of 500 or fewer employees based upon employment 
during each pay period for the preceding 12 calendar months;
    3. Small organization--a not-for-profit organization which is 
independently owned and operated and has annual gross receipts of $5 
million or less;
    4. Small governmental jurisdiction--a government of a city, 
county, town, township, village, school district or special district 
with a population of less than 50,000;
    5. Small educational institution--an educational institution 
supported by a qualifying small governmental jurisdiction, or one 
that is not state or publicly supported and has 500 or fewer 
employees.1
---------------------------------------------------------------------------

    \1\An educational institution referred to in the size standards 
is an entity whose primary function is education, whose programs are 
accredited by a nationally recognized accrediting agency or 
association, who is legally authorized to provide a program of 
organized instruction or study, who provides an educational program 
for which it awards academic degrees, and whose educational programs 
are available to the public.
---------------------------------------------------------------------------

NRC Small Entity Fees

    The NRC has established two tiers of small-entity fees for 
licensees that qualify under the NRC's size standards. Currently, 
these fees are as follows:

------------------------------------------------------------------------
                                                                Maximum 
                                                                 annual 
                                                                fee per 
                                                                licensed
                                                                category
------------------------------------------------------------------------
Small Business Not Engaged in Manufacturing and Small Not-For           
 Profit Organizations (Gross Annual Receipts):                          
  $350,000 to $5 million.....................................     $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
------------------------------------------------------------------------

    To pay a reduced annual fee, a licensee must use NRC Form 526, 
enclosed with the fee invoice, to certify that it meets NRC's size 
standards for a small entity. About 1,400 licensees certify each 
year that they qualify as a small entity under the NRC size 
standards and pay a reduced annual fee. Approximately 800 licensees 
pay the small entity fee of $1,800 while 600 licensees pay the 
lower-tier, small-entity fee of $400.

Instructions for Completing NRC Form 526

    1. File a separate NRC Form 526 for each annual fee invoice 
received.
    2. Complete all items on NRC Form 526 as follows:
    a. The license number and invoice number must be entered exactly 
as they appear on the annual fee invoice.
    b. The Standard Industrial Classification (SIC) Code should be 
entered if it is known.
    c. The licensee's name and address must be entered as they 
appear on the invoice. Name and/or address changes for billing 
purposes must be annotated on the invoice. Correcting the name and/
or address on NRC Form 526 or on the invoice does not constitute a 
request to amend the license. Any request to amend a license is to 
be submitted to the respective licensing staffs in the NRC Regional 
or Headquarters Offices.
    d. Check the appropriate size standard under which the licensee 
qualifies as a small entity. Check one box only. Note the following:
    (1) The size standards apply to the licensee, not the individual 
authorized users listed in the license.
    (2) Gross annual receipts as used in the size standards includes 
all revenue in whatever form received or accrued from whatever 
sources, not solely receipts from licensed activities. There are 
limited exceptions as set forth at 13 CFR 121.104. These are: the 
term receipts excludes net capital gains or losses, taxes collected 
for and remitted to a taxing authority if included in gross or total 
income, proceeds from the transactions between a concern and its 
domestic or foreign affiliates (if also excluded from gross or total 
income on a consolidated return filed with the IRS), and amounts 
collected for another by a travel agent, real estate agent, 
advertising agent, or conference management service provider.
    (3) A licensee who is a subsidiary of a large entity does not 
qualify as a small entity.
    (4) The owner of the entity, or an official empowered to act on 
behalf of the entity, must sign and date the small entity 
certification.
    3. The NRC sends invoices to its licensees for the full annual 
fee, even though some entities qualify for reduced fees as a small 
entity. Licensees who qualify as a small entity and file NRC Form 
526, which certifies eligibility for small entity fees, may pay the 
reduced fee, which for a full year is either $1,800 or $400, for 
each fee category shown on the invoice depending on the size of the 
entity. Licensees granted a license during the first six months of 
the fiscal year and licensees who file for termination or for a 
possession only license and permanently cease licensed activities 
during the first six months of the fiscal year pay only 50 percent 
of the annual fee for that year. Such an invoice states the ``Amount 
Billed Represents 50% Proration.'' This means the amount due from a 
small entity is not the prorated amount shown on the invoice but 
rather one-half of the maximum annual fee shown on NRC Form 526 for 
the size standard under which the licensee qualifies, resulting in a 
fee of either $900 or $200 for each fee category billed instead of 
the full small entity annual fee of $1,800 or $400.
    4. A new small entity form (NRC Form 526) is required to be 
filed with the NRC each fiscal year in order to qualify for reduced 
fees for that fiscal year. Because a licensee's ``size,'' or the 
size standards, may change from year to year, the invoice reflects 
the full fee and a new Form must be completed and returned for the 
fee to be reduced to the small entity fee. LICENSEES WILL NOT BE 
ISSUED A NEW INVOICE FOR THE REDUCED AMOUNT. The completed NRC Form 
526, the payment of the appropriate small entity fee, and the 
``Payment Copy `` of the invoice should be mailed to the U.S. 
Nuclear Regulatory Commission, License Fee and Accounts Receivable 
Branch, P.O. Box 954514, St. Louis, MO 63195-4514.
    5. Questions regarding fee invoices may be posed orally or in 
writing. Please call the license fee staff at 301-415-7554 or write 
to the U.S. Nuclear Regulatory Commission, Washington, DC 20555, 
Attention: Office of the Chief Financial Officer.
    6. False certification of small entity status could result in 
civil sanctions being imposed by the NRC pursuant to the Program 
Fraud Civil Remedies Act, 31 U.S.C. 3801 et. seq. NRC's implementing 
regulations are found at 10 CFR Part 13.

[FR Doc. 98-8279 Filed 3-31-98; 8:45 am]
BILLING CODE 7590-01-P