[Federal Register Volume 66, Number 115 (Thursday, June 14, 2001)]
[Rules and Regulations]
[Pages 32452-32481]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-14856]



[[Page 32451]]

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Part III





Nuclear Regulatory Commission





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10 CFR Parts 150 et al.



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

  Federal Register / Vol. 66, No. 115 / Thursday, June 14, 2001 / Rules 
and Regulations  

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NUCLEAR REGULATORY COMMISSION

10 CFR Parts 150, 170 and 171

RIN 3150-AG73


Revision of Fee Schedules; Fee Recovery for FY 2001

AGENCY: Nuclear Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Nuclear Regulatory Commission (NRC) is amending the 
licensing, inspection, and annual fees charged to its applicants and 
licensees. The amendments are necessary to implement the Omnibus Budget 
Reconciliation Act of 1990 (OBRA-90), as amended, which requires that 
the NRC recover approximately 98 percent of its budget authority in 
fiscal year (FY) 2001, less the amounts appropriated from the Nuclear 
Waste Fund (NWF) and the General Fund. The amount to be recovered for 
FY 2001 is approximately $453.3 million.

EFFECTIVE DATE: August 13, 2001.

ADDRESSES: The comments received and the agency work papers that 
support these final changes to 10 CFR parts 170 and 171 are available 
electronically at the NRC's Public Electronic Reading Room on the 
Internet at
http://www.nrc.gov/NRC/ADAMS/index.html. From this site, the public can 
gain entry into the NRC's Agencywide Documents Access and Management 
System (ADAMS), which provides text and image files of NRC's public 
documents. For more information, contact the NRC Public Document Room 
(PDR) Reference staff at 1-800-397-4209, or 301-415-4737, or by email 
to [email protected]. If you do not have access to ADAMS or if there are 
problems in accessing the documents located in ADAMS, contact the PDR.
    Comments received may also be viewed via the NRC's interactive 
rulemaking website (http.//ruleforum.llnl.gov). This site provides the 
ability to upload comments as files (any format), if your web browser 
supports that function. For information about the interactive 
rulemaking site, contact Ms. Carol Gallagher, 301-415-5905; e-mail 
[email protected].
    For a period of 90 days after the effective date of this final 
rule, the work papers may also be examined at the NRC Public Document 
Room, Room O-1F22, One White Flint North, 11555 Rockville Pike, 
Rockville, MD 20852-2738.

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

SUPPLEMENTARY INFORMATION:
I. Background
II. Responses to Comments
III. Final Action
IV. Voluntary Consensus Standards
V. Environmental Impact: Categorical Exclusion
VI. Paperwork Reduction Act Statement
VII. Regulatory Analysis
VIII. Regulatory Flexibility Analysis
IX. Backfit Analysis
X. Small Business Regulatory Enforcement Fairness Act

I. Background

    For FY 2001, the NRC is required to recover through fees 
approximately 98 percent of its budget authority, less the amounts 
appropriated from the Nuclear Waste Fund (NWF) and from the General 
Fund. The fee recovery amount for FY 2001 is approximately $453.3 
million.
    For FYs 1991 through 2000, OBRA-90, as amended, required that the 
NRC recover approximately 100 percent of its budget authority, less the 
amount appropriated from the U.S. Department of Energy (DOE) 
administered NWF, by assessing fees. To address fairness and equity 
concerns raised by the NRC related to charging NRC license holders for 
agency expenses that do not provide a direct benefit to the licensee, 
the FY 2001 Energy and Water Development Appropriations Act amended 
OBRA-90 to decrease the NRC's fee recovery amount from 100 percent to 
98 percent of the NRC's budget authority in FY 2001. The OBRA-90 
amendment further decreases the fee recovery amount by an additional 
two percent per year beginning in FY 2002 until the fee recovery amount 
is 90 percent by FY 2005.
    In addition to the 2 percent reduction to the fee recovery amount 
for FY 2001, $3.2 million has been appropriated from the General Fund 
for activities related to regulatory reviews and assistance provided to 
other Federal agencies and States. The FY 2001 Energy and Water 
Development Appropriations Act states that this $3.2 million shall be 
excluded from license fee revenues. The total amount thus to be 
recovered for FY 2001 is approximately $453.3 million.
    The NRC assesses two types of fees to meet the requirements of 
OBRA-90, as amended. First, license and inspection fees, established at 
10 CFR part 170 under the authority of the Independent Offices 
Appropriation Act of 1952 (IOAA), 31 U.S.C. 9701, recover the NRC's 
costs of providing special benefits to identifiable applicants and 
licensees. Examples of the services provided by the NRC for which these 
fees are assessed are the review of applications for new licenses, the 
review of applications for renewal of existing licenses, and the review 
of requests for license amendments. Second, annual fees, established in 
10 CFR part 171 under the authority of OBRA-90, recover generic and 
other regulatory costs not otherwise recovered through 10 CFR part 170 
fees.

II. Responses to Comments

    The NRC published a proposed rule that presented the amendments 
necessary to revise the licensing, inspection, and annual fees charged 
to its licensees and applicants for FY 2001 on March 28, 2001 (66 FR 
16982). Although the comment period ended on April 27, 2001, the NRC 
evaluated the 13 comments which were received by the close of business 
on May 7, 2001. Many of the comments raised similar issues. These 
comments have been grouped, as appropriate, and addressed as single 
issues in this final rule.
    The comments and NRC's responses are as follows:

A. Legal Issues

1. Information Provided by NRC in Support of Proposed Rule
    Comment. One commenter urged the NRC to provide licensees and the 
public with a more detailed explanation of the specific activities and 
associated costs that form the basis for the part 171 annual fees, 
including detailed information on the outstanding major contracts, 
their purpose, and their costs. The commenter stated that, to enable 
stakeholders to provide meaningful comment on the proposed rule, the 
NRC should provide sufficient detail on the costs associated with each 
component of reactor regulation and other generic costs. The commenter 
indicated that this more detailed information would allow licensees and 
the public to provide more effective feedback and comment on the 
efficiency of NRC's regulatory activities and would propel the 
Commission to exercise its authority to promote increased fiscal 
responsibility.
    Response. The NRC believes that commenters were provided ample 
information on which to base constructive comments on NRC's proposed 
revisions to parts 170 and 171. Consistent with the requirements of 
OBRA-90, the proposed fees were developed to recover approximately 98 
percent of the NRC's FY 2001 budget

[[Page 32453]]

authority from the various classes of licensees. In addition to the 
descriptions of the types of activities included in the proposed fees 
and explanations of how the fees were calculated to recover the 
budgeted costs for those activities, the proposed rule also announced 
that the work papers supporting the proposed rule were available for 
public examination. As the proposed rule stated, the work papers were 
available in the NRC's Agencywide Documents Access and Management 
System (ADAMS) for public examination (Accession No. ML010860287). 
During the 30-day comment period the work papers were also available in 
the NRC Public Document Room at One White Flint North, 11555 Rockville 
Pike, Rockville, MD for the public's use. The work papers include 
extensive information detailing the activities and the associated 
budgeted resources allocated to the various classes of licensees. The 
work papers show, by strategic arena, the allocation of budgeted costs 
for each planned accomplishment within each program of each strategic 
arena. In addition to the detailed budget information contained in the 
work papers, the NRC has made available in the Public Document Room 
NUREG-1100, Volume 16, ``Budget Estimates and Performance Plan, Fiscal 
Year 2001 (February 2000),'' which discusses the NRC's budget for FY 
2001, including the activities to be performed in each strategic arena. 
The extensive information available to the public meets all legal 
requirements and the NRC believes it provides the public with 
sufficient information on which to base their comments on the proposed 
fee rule.
    The NRC's budgets and the manner in which the NRC carries out its 
activities are outside the scope of this rulemaking. The purpose of 
this rulemaking is to establish the fees necessary to recover 
approximately 98 percent of the NRC's FY 2001 budget authority, less 
the amounts appropriated from the NWF and the General Fund, as required 
by OBRA-90, as amended. Therefore the commenter's suggestion that more 
detailed information would allow the public to provide more effective 
comments concerning the efficiencies of NRC's regulatory activities and 
the manner in which NRC carries out its fiscal responsibilities are not 
addressed in this final rule.

B. Specific Part 170 Issues

1. Hourly Rates
    Comment. Some commenters opposed the $144 proposed hourly rate for 
the materials program. As in similar comments received from the uranium 
recovery industry on the issue in previous fee schedule rulemakings, 
the commenters stated that the hourly rate is excessive, is more than 
the professional hourly rates charged by national consulting firms, and 
should be substantially reduced.
    Response. The NRC's hourly rates are based on budgeted costs and 
must be established at the revised levels to meet the fee recovery 
requirements. The professional FTE rates include not only average 
salaries and benefits for professional employees, but also a prorated 
share of overhead costs, such as supervisory and secretarial support 
and information technology overhead costs, as well as general and 
administrative costs, such as rent, heat, supplies, and payroll and 
human resources staffs.
    The proposed hourly rate of $144 for the materials program is a 
very slight increase over the $143 hourly rate for FY 2000. As stated 
in the proposed rule, the increase is primarily due to the Government-
wide pay increase in FY 2001. The revised hourly rates, coupled with 
the direct contract costs, recover through part 170 fees the full cost 
to the NRC of providing special services to specifically identifiable 
beneficiaries as provided by the IOAA, and the revised hourly rates 
plus direct contract costs recover through part 171 annual fees the 
required amount of NRC's budgeted costs for activities not recovered 
through part 170 fees, as required by OBRA-90, as amended. The NRC is 
establishing in this final rule the revised hourly rates necessary to 
accomplish the fee recovery requirements. The professional hourly rate 
for the reactor program is $150, and the professional hourly rate for 
the materials program is $144. For part 170 activities, the rates will 
be assessed for professional staff time expended on or after the 
effective date of this final rule.
2. Project Manager Billing Issues
    Comment. Four comments were received opposing NRC's assessment of 
Part 170 fees to uranium recovery licensees to recover the costs for 
Project Managers (PM) assigned to their licenses. Commenters indicated 
that the PM charges have become an additional expense for the industry. 
These commenters raised several specific concerns with this fee 
recovery policy: the PM costs represent administrative charges that may 
or may not be directly related to the licensee's operations; the PM 
charges include generic efforts, such as rulemaking activities; 
licensees have no way to control these costs because the charges are 
allocated evenly among the licensees to which that PM is assigned; and 
the problem is exacerbated when a PM is assigned to only one, or in 
some cases only a few, licensee(s) who must pay all of the overhead 
costs associated with that PM. Several commenters supported the re-
designation of PMs assigned to uranium recovery licenses as points of 
contact, particularly for those licensees who are not currently 
operating. One commenter stated that to the extent the NRC is required 
to recover these costs, it should do so through the annual fee to 
spread the costs more equitably across a range of licensees. One 
commenter asserts that the billing policy is an unjustified and ultra 
vires (beyond NRC's legitimate powers) implementation of its OBRA 
responsibilities, and that it cannot be defended, particularly as a 
shift of costs from part 171 fees to part 170 fees, because there has 
not been a decrease in the part 171 fees commensurate with the increase 
in part 170 fees. Referring to an NRC guidance document for staff hour 
reporting and coding of activities in NRC's Regulatory Information 
Tracking System (RITS) (the system used by the NRC to record and track 
staff hours and from which data is gathered for fee billing purposes), 
the same commenter charges that there is virtually no activity a PM 
performs that is excluded from fee recovery. The commenter claims that 
licensees are billed for generic efforts, despite statements to the 
contrary in the final FY 1999 fee rule (64 FR 31448; June 10, 1999), 
giving as an example ``rulemaking oversight'', which is assigned a code 
in RITS. The same commenter stated that nothing in the statements of 
consideration for the FY 1999 final rule, which provided examples of PM 
activities that would be included in part 170 fees, indicated that 
licensees would be charged for PM activities for work on the NRC's 
accounting system or work for another branch/office.
    Response. The NRC assesses part 170 fees for PM activities under 
the authority of the IOAA. In the FY 1999 fee rule, the NRC stated that 
expanding the scope of part 170 to include, for example, full cost 
recovery for PMs is consistent with Title V of the IOAA, 
interpretations of that legislation by the Federal courts, and 
Commission guidance. These guidelines provide that part 170 fees may be 
assessed to persons who are identifiable recipients of ``special 
benefits'' conferred by specifically identified activities of the NRC. 
Because PM activities are services which the NRC provides to specific, 
identifiable recipients, it is more appropriate that the costs, less 
costs for

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generic activities and leave time, be recovered through part 170 fees 
assessed to the recipient of that service, rather than through annual 
fees assessed to the licensees in the class subject to annual fees.
    Contrary to the commenter's claim, generic activities conducted by 
PMs are not recovered through part 170 fees. The fact that rulemaking 
activities are assigned a code in RITS does not mean that costs for 
these generic activities are included in PM costs assessed under part 
170. RITS is the system used by the NRC's major program offices for 
recording staff hours, and the data is used for many purposes. Although 
the NRC's part 170 billing system uses data from RITS, it is programmed 
to exclude RITS data related to activities that are not subject to part 
170 fees. Rulemaking activities are one example of the types of 
activities that are excluded from part 170 fee billing. Other examples 
of the types of activities that are coded in RITS but not billed under 
part 170 are allegation followup activities, escalated enforcement 
activities, and Combined Federal Campaign activities.
    Generic activities are those NRC activities that broadly benefit 
classes or subclasses of licensees. Examples of generic activities, as 
stated in the FY 1999 final rule and reiterated in the FY 2000 final 
rule (64 FR 31451; June 10, 1999, and 65 FR 36947; June 12, 2000, 
respectively), include rulemaking and development of generic guidance 
documents. General activities such as training, general correspondence, 
attending staff meetings, coordination with and support to other 
offices, and processing documents into the Agencywide Documents Access 
and Management System (ADAMS) are not generic activities. In responding 
to uranium recovery industry comments in the FY 2000 final rule, the 
NRC listed these examples of the types of PM activities that are 
recovered through PM part 170 fees. The examples provided by the NRC in 
the FY 1999 and FY 2000 fee rules of PM activities to be billed under 
part 170 and those excluded from part 170 billing were not intended to 
be complete lists. Of the 420 RITS codes for use by PMs assigned to 
uranium recovery and other types of materials licenses, only 125 are 
identified for Part 170 billing purposes.
    The PM activities charged under part 170 are general activities and 
activities specifically related to the site, such as licensing reviews. 
As the commenter indicated, the general activities billed under part 
170 include time that a PM spends in reporting to the NRC's accounting 
system. General activities are part of the costs to the agency of 
providing the PM services, and the NRC continues to believe that the 
costs are most appropriately recovered from the licensees benefitting 
from the PM services.
    The concept that the assessment of part 170 fees for PM activities 
increases the costs to the uranium recovery class is incorrect. PM 
charges might result in an increase for a particular licensee at a 
particular point in time. However, billing for PM time under part 170 
does not cause an increase, or a decrease, in the total fees assessed 
to the class. Based on the OBRA-90 fee recovery requirements, all 
budgeted costs allocated to a class that are not recovered through part 
170 fees paid by the class are recovered through annual fees assessed 
to those licensees in the class subject to the annual fees. Thus, all 
budgeted costs allocated to a class are paid by the class, either 
through part 170 fees or part 171 fees.
    Although on the surface it may appear to be more fair to recover 
the PM costs through annual fees, the end result would not necessarily 
be equitable to those licensees paying the annual fees. If, for 
example, the NRC were to discontinue assessing part 170 fees to uranium 
recovery licensees for PM activities and all other conditions remained 
the same, uranium recovery licensees subject to annual fees would pay 
more in total costs because those uranium recovery licensees in 
decommissioning are not subject to annual fees and therefore would no 
longer pay for the PMs assigned to their site. Instead, the licensees 
authorized to operate or in a standby status would pay those PM costs 
through annual fees. To illustrate this point, the estimated average 
total PM part 170 fees paid per year by uranium recovery licensees in 
decommissioning or possession only status is $322,000. If the NRC 
eliminated PM activities from Part 170 fees for the uranium recovery 
class for a full fiscal year, the 11 licensees authorized to operate or 
in a standby status would be assessed an additional $322,000 in annual 
fees for that fiscal year in order to recover those costs.
    The NRC finds no basis at this time to change its policy of 
recovering the costs for PMs through part 170 fees, to change the 
manner in which the costs are spread among those licensees assigned to 
one PM, or to change the policy with regard to assessing one licensee 
for all of the PM's activities when the PM is assigned to that one site 
only. The NRC believes this is a fair and equitable method of 
recovering these costs.
3. Clarification of Fee Waiver Provisions in Sec. 170.21, Footnote 4 
and Sec. 170.31, Footnote 5
    Comment. Two comments were received on the NRC's clarification of 
the fee waivers provided in 10 CFR 170.21, Footnote 4, criterion 3, and 
10 CFR 170.31, Footnote 5, criterion (c) for certain documents 
submitted to the NRC. One commenter expressed concern that the NRC is 
shifting cost recovery for generic activities from part 171 to part 
170. Both commenters contend that the clarification will discourage 
generic actions and is inconsistent with the Commission's policies 
aimed at encouraging industry organizations to work cooperatively with 
the NRC and recognizing the efficiencies and effectiveness to be gained 
from these efforts. The commenters assert that the clarification 
represents a change in policy and will discourage industry initiatives, 
which serve to reduce NRC resource demands and expedite resolution of 
issues on a generic basis. One commenter further contends that the 
clarification is inconsistent with the NRC's strategic goal of making 
its activities and decisions more effective, efficient, and realistic, 
and recommends that NRC retain ``the original interpretation'' of the 
fee waiver.
    Response. The NRC's original interpretation of the subject fee 
waiver provisions has not changed, and has been consistently applied in 
granting or denying fee waiver requests. However, the NRC has 
experienced an increase in the number of fee waiver requests that do 
not meet the criteria. The NRC believes that this increase may be due, 
at least in part, to the fact that the statements of consideration in 
the FY 1994 fee rule concerning the waivers (59 FR 36895; July 20, 
1994) were not repeated in subsequent fee rulemakings and are not 
codified in the regulations. Therefore, licensees may be submitting fee 
exemption requests that do not meet the criteria because they may not 
be familiar with the intent of the fee waiver provisions.
    As the statement of considerations for the 1994 fee rule indicates, 
the fee waiver provisions of criterion 3 of Footnote 4 to Sec. 170.21 
and criterion (c) of Footnote 5 to Sec. 170.31 apply to reports 
submitted for the purpose of supporting NRC's generic regulatory 
improvements, such as development of generic guidance and regulations 
and resolution of safety issues applicable to a class of licensees. The 
NRC has denied fee waiver requests for reports/requests that were not 
submitted for the purpose of NRC's regulatory improvements, such

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as those submitted for the purpose of furthering the industry's generic 
actions. Although the NRC may realize some benefits from the review and 
approval of reports/requests that are submitted for purposes other than 
NRC's generic regulatory improvements, the primary beneficiary of the 
review and approval of such reports is the organization that submitted 
the report. Assessing part 170 fees for these special services rendered 
to identifiable recipients is consistent with the provisions of the 
IOAA. Contrary to one commenter's view, reports of this type do not 
represent NRC generic activities. Therefore the NRC is not shifting 
cost recovery for generic activities out of part 171 to part 170.
    To assist licensees in determining in advance whether their 
submissions meet the criteria for the fee waiver, the NRC is, in this 
final rule, re-stating the original statement of considerations for the 
FY 1994 rule related to the fee waivers, and is adding clarifying 
language to the Footnotes that the reports/requests must be submitted 
for the purpose of NRC's regulatory improvements for the fee to be 
waived. This is not a change in policy, is consistent with how the fee 
waiver provisions have been applied by the NRC, and is not inconsistent 
with the NRC's strategic goals.
4. Invoice Information
    Comment. Several commenters assert that NRC's invoices lack 
adequate explanations of the work done and the dates the work was 
performed. These commenters urged the NRC to continue its efforts to 
provide invoices that contain more detailed information on the specific 
costs. While recognizing that this would require major revisions to 
NRC's billing system, commenters contend that the change would serve 
the NRC, its licensees, and the public well.
    Response. As the NRC has stated in response to similar comments on 
previous rules, the NRC believes that sufficient information is 
provided on the invoices for licensees and applicants to base payment 
of the costs assessed under part 170. For NRC staff effort, specific 
policies and procedures are in place for NRC staff to follow in 
recording time in RITS, which is the NRC's current system for tracking 
staff hours expended. The system contains specific codes for the 
various types of licensing reviews, leave, training, general 
administration effort, etc. From RITS, the fee billing system captures 
the NRC staff hours for activities billable under part 170 as well as 
the work effort code descriptions for those billable hours. For these 
activities, the staff hours, work effort codes, the name of the staff 
member performing the work, and the date the work was completed, if 
applicable, are printed on the enclosure to the part 170 invoices. 
Currently, the work effort codes are the only available data describing 
the work performed, and they are the lowest level of detail available 
in RITS. However, the NRC believes that the summary work descriptions 
shown on the invoices are sufficient to allow licensees to identify the 
subject of the NRC's efforts. Additionally, the inspection report 
number is provided on inspection fee bills. Further, as the NRC has 
stated in previous rules, any applicant or licensee who does not 
understand the charges or needs more information in order to understand 
the bill may request additional details from the NRC. All available 
information in support of the bill will be provided. This has always 
been an option available to licensees and applicants who feel they need 
more information on the costs billed.
    For contractor costs billed to uranium recovery licensees under 
part 170, the NRC includes copies of the contractors' summary cost 
reports with the invoices. Again, any additional information that is 
available is provided upon a specific request of the applicant or 
licensee. However, as the NRC has explained in the past, the NRC does 
not plan to develop additional systems solely to provide additional 
information on its fee invoices. Office of Management and Budget 
Circular A-25, which provides guidelines for Federal agencies to assess 
fees for Government services, provides that new cost accounting systems 
do not need to be established solely for the purpose of determining or 
estimating full cost.

C. Specific Part 171 Issues

1. Fee Exemption for Educational Institutions
    Comment. One college holding an NRC materials license commented 
that the proposed fee rule would represent a major financial burden to 
the college and they would have to consider terminating their license. 
The commenter requested that NRC provide a fee exemption for small 
colleges and universities.
    Response. The NRC has not changed the existing fee exemptions for 
nonprofit educational institutions. The part 170 and part 171 fee 
exemptions for nonprofit educational institutions were not shown in the 
proposed rule for public comment because only sections of a regulation 
that are being considered for change in a proposed rulemaking are 
published in the Federal Register as part of the rulemaking process.
    As provided in 10 CFR 170.11(a)(4) and 10 CFR 171.11(a)(1), fees 
are not required for a license applied for by, or issued to, a 
nonprofit educational institution. Therefore, most colleges and 
universities will continue to be exempt from part 170 and part 171 
fees. However, the fee exemptions do not apply to those licenses that 
authorize human use; remunerated services to other persons; 
distribution of byproduct, source, or special nuclear materials or 
products containing byproduct, source, or special nuclear material; or 
activities performed under a Government contract.
2. Small Entity Fees
    Comment. One commenter stated that the range of $350,000 to 
$5,000,000 in gross annual receipts for the two tiers of annual fees 
for small entities is too large. The commenter indicated that their 
firm is at the lower end of the range, paying the same annual fee as 
another entity with four to five times their gross revenue. The 
commenter suggested that to help reduce the license fee burden on 
smaller entities, the NRC establish additional tiers between the 
$350,000 and $5,000,000 range; for example, a tier of $350,000 to 
$1,500,000 in gross annual receipts with an annual fee of $1,000, and a 
tier of $1,500,000 to $5,000,000 with an annual fee of $1,500.
    Response. The NRC believes that the two tiers of reduced annual 
fees currently in place provide substantial fee relief for small 
entities, including those with relatively low annual gross receipts. 
Reductions in fees for small entities must be paid for by other NRC 
licensees in order to meet the requirements of OBRA-90, as amended, to 
recover most of the NRC's budget through fees. While establishing more 
tiers would provide additional fee relief for some small entities, it 
would result in an increase in the small entity subsidy other licensees 
pay. The NRC believes that in order to maintain a reasonable balance 
between the objectives of OBRA-90 and the of 1980 (RFA) requirement 
that the NRC examine ways to minimize significant impacts its rules may 
have on a substantial number of small entities, no further reductions 
to the fees should be made.
    The NRC established reduced annual fees for small entities based on 
the RFA requirement that if an 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

[[Page 32456]]

impacts on small entities and the alternatives to minimize these 
impacts. The NRC has performed a regulatory flexibility analysis as 
part of its fee rulemaking each year since annual fees were first 
established in FY 1991 under OBRA-90, based on the Commission's 
conclusion that the annual fees for materials licensees result in 
substantial fees being assessed to a significant number of small 
entities.
    To minimize the impacts of the annual fees, the NRC has established 
a maximum annual fee for licensees who qualify as a small entity under 
NRC's size standards. In 1992, the NRC established a lower tier small 
entity fee to further reduce the impact of the annual fees for those 
licensees with relatively low gross annual receipts of less than 
$250,000 and for small governmental jurisdictions with a relatively low 
population of less than 20,000 (57 FR 13625; April 17, 1992). In 
establishing this lower tier, the NRC stated that the additional tier 
would substantially reduce the impact of the annual fees for those 
licensees with relatively low gross annual receipts, while at the same 
time it would not substantially increase the amount of fees that other 
licensees would be required to pay to subsidize the small entities.
    In 1995, the NRC published a final rule amending its size standards 
(60 FR 18344; April 11, 1995). One aspect of the amendment was to add a 
size standard of 500 or fewer employees for business concerns that are 
manufacturing entities. In the final FY 1995 fee rule, the gross-
receipts level for the lower-tier small entity fees was increased to 
the current level of $350,000, and a lower tier of less than 35 
employees was established for manufacturing entities.
    For FY 2000, approximately 35 percent of the small entities 
qualifying for reduced annual fees qualified for the lower tier small 
entity fee. The NRC believes that maintaining a single lower tier 
annual fee for small entities with relatively low gross annual receipts 
of less than $350,000, for small governmental jurisdictions with a 
population of less than 20,000, and for manufacturing entities that 
have an average of less than 35 employees continues to provide a 
further reduction to the impact of the annual fees to a significant 
number of small entities.
    Comment. Two comments were received concerning NRC's proposal to 
discontinue mailing NRC Form 526, ``Certification of Small Entity 
Status for the Purposes of Annual Fees Imposed Under 10 CFR part 171,'' 
with each annual fee invoice. One of the commenters indicated that the 
proposal would result in a burden on the licensees because they would 
have to obtain the form by other means, and that many of the ``mom and 
pop'' operations may not have access to the Internet. This commenter 
believes that, because only a small percentage of the total number of 
small entity forms submitted are filed by licensees who do not qualify 
for small entity status, the proposal would unfairly penalize those who 
do qualify as a small entity. The commenter stated that because NRC 
requires the form, the NRC is obligated to supply it by a means that is 
accessible to all licensees. The commenter suggested that instead of 
discontinuing mailing the form with the annual fee invoices, the form 
be modified to make it clear who qualifies and who does not qualify as 
a small entity.
    Both commenters stated that the proposal would result in an 
additional burden on NRC staff due to increased telephone calls 
requesting the form and staff efforts to mail or fax the form to those 
requesting it. One commenter believes that many licensees do not read 
the proposed and final fee rules, and therefore would not be aware of 
the revised policy. This would result in more calls to the NRC asking 
why the form was not enclosed with the invoice.
    Response. NRC Form 526 is one sheet, with the five NRC size 
standards for small entities printed on the front, and the instructions 
for completing the form printed on the back. Both sides of the form 
state, in capital letters and in large print, that the form should not 
be completed if the licensee does not qualify under one of the size 
standards shown. In addition, the Certification block, which is to be 
signed by the owner of the small entity or an official empowered to act 
on behalf of that entity, states ``I certify that the above named NRC 
licensee qualifies as a small entity under the size standards 
established by the NRC for its licensees in 10 CFR 2.810 (60 FR 18344). 
The licensee qualifies as a small entity under the specific size 
standard indicated above.'' Thus, the NRC believes the form and the 
accompanying instructions are clear that the form should be completed 
only by those licensees that qualify as a small entity under NRC's size 
standards.
    However, as indicated in the proposed rule, the NRC continues to 
receive forms completed by licensees who do not qualify as a small 
entity. When contacted about improperly filed forms, many of these 
licensees indicate they thought they had to complete the form because 
it was enclosed with the annual fee invoice. It is for this reason that 
the NRC proposed to discontinue including NRC Form 526 with each annual 
fee invoice.
    Licensees who file an improperly completed NRC Form 526 do so under 
penalty of perjury, and could become the subject of an NRC 
investigation. This could lead to fines, imprisonment, or both, and the 
revocation or suspension of the license. The NRC believes that there is 
merit to trying to minimize the number of improperly filed forms, the 
resulting risk to the licensees, and the associated drain on NRC 
resources.
    The NRC is adopting the proposed change. However, in order to 
minimize the impact on NRC licensees and NRC staff resources, 
implementation of the revised policy of not mailing NRC Form 526 with 
each annual fee invoice will be phased in. The NRC is evaluating 
various options to determine the most cost effective means of 
segregating in the annual fee billing system those licensees who are 
identified in the accounting system as qualifying small entities for 
the previous fiscal year. Once this process is in place, the NRC will 
send NRC Form 526 only with those annual fee invoices issued to 
licensees who qualified as a small entity for the prior year. When this 
process is implemented, the NRC will send a notice with the annual fee 
invoices issued to those licensees who did not qualify as a small 
entity the previous year to advise them of the change and to provide 
information on how they can obtain the form if they qualify as a small 
entity in the current year. Until the revised process is in place, the 
NRC will continue to mail NRC Form 526 with each annual fee invoice 
issued to materials licensees.
    Licensees who have questions about their status as a small entity 
or about the process for filing the NRC Form 526 should contact the 
NRC's license fee staff at 301-415-7554, or e-mail the fee staff at 
[email protected].
3. Annual Fees for Uranium Recovery Licensees
    Comment. The NRC received 5 comments concerning the annual fees 
charged to NRC's uranium recovery class of licensees. While most of the 
commenters acknowledged the reduction in annual fees for the uranium 
recovery class compared to FY 2000, many stated that the reduction does 
not make up for an increase in total charges over the last two years 
and does not go far enough. Some commenters are concerned with what 
they believe is a lack of a reasonable relationship between the cost to 
uranium recovery licensees of NRC's regulatory oversight program, and 
the benefit derived from

[[Page 32457]]

that program. Several commenters indicate that sites that are on 
standby or awaiting approval of reclamation plans should not be subject 
to annual fees because they require minimal NRC oversight. Some 
commenters stated that the decision to cease operations, go into 
standby, or begin decommissioning is rarely at the licensee's 
discretion, but rather is based on the realities of the uranium market. 
Several commenters stated that the NRC must find an equitable way of 
dealing with the decreasing number of licensees in the uranium recovery 
area, which could result in the remaining few paying for the entire 
program.
    Some commenters referred to the April 10, 2001, Commissioners' 
Briefing provided by the National Mining Association, where the status 
of the uranium recovery industry, the impacts of NRC's fees on the 
industry, and the potential for seeking fee relief were discussed. 
Several commenters supported an industry-wide effort to seek relief 
from NRC's fees through a petition for rulemaking or by pursuing 
legislative relief. Commenters claim that the fees NRC charges uranium 
recovery licensees threaten the viability of the industry, which is 
vital to the nation's long-term energy security.
    Response. The NRC has responded to similar comments concerning the 
impact of its fees on the uranium recovery industry in several prior 
fee rulemakings. Most recently, the NRC responded to these concerns in 
the FY 2000 final rule (65 FR 36950, 36951; June 12, 2000). As 
explained there, the NRC recognizes that fees may result in a 
substantial financial hardship for the uranium recovery industry, 
particularly in light of the industry's economic status and the 
potential for a decreasing number of uranium recovery licensees. 
However, consistent with the OBRA-90 requirement that the annual fees 
must, to the maximum extent practicable, have a reasonable relationship 
to the cost of providing regulatory services, the NRC's annual fees for 
the uranium recovery class of licensees reflect the NRC's cost of its 
regulatory services to the class. The NRC determined the costs to be 
allocated to each class through an extensive review of each planned 
accomplishment in the major program areas.
    As the NRC has stated since FY 1991 when the 100 percent fee 
recovery requirement was first implemented, the agency recognizes that 
assessing fees to recover these costs as required by OBRA-90 may result 
in adverse economic impacts on some licensees. However, a reduction in 
the fees assessed to one class of licensees would require a 
corresponding increase in the fees assessed to other classes. It is 
largely for this reason that the NRC has heretofore not based the 
annual fees on licensees' economic status, market conditions, or the 
inability of licensees to pass through the costs to its customers. 
Instead, the NRC has only considered the impacts it is required by law 
to consider.
    The NRC provides reduced annual fees for licensees who qualify as 
small entities under NRC's size standards, based on a determination 
under the provisions of the Regulatory Flexibility Act that annual fees 
have a significant economic impact on a substantial number of small 
entities. The reduction in annual fees for qualifying small entity 
uranium recovery licensees is significant. For example, for FY 2000, an 
in-situ mill licensee paid a reduced annual fee of $400 based on their 
small entity status, a reduction of $26,850. Because OBRA-90 requires 
that the NRC recover most of its budget through fees, costs not 
recovered from licensees based on their small entity status, or for any 
other reason, are allocated to other licensees. The subsidy for small 
entities is recovered through the surcharge, with reactor licensees 
paying about 80 percent of the total surcharge costs.
    A decrease in the number of licensees does not necessarily reduce 
the need for NRC's generic efforts and other activities recovered 
through part 171 annual fees. For example, the number of licensees does 
not affect the NRC's costs to establish a risk-informed, performance-
based regulatory framework or to maintain the Emergency Response 
Center. However, the NRC budget process provides an on-going mechanism 
for assuring that its programs are carried out in the most efficient 
and effective manner. In FY 1999, budgeted costs of $5.8 million were 
allocated to the uranium recovery class, including $0.7 million in 
surcharge costs. In FY 2001, $4.3 million has been allocated to the 
uranium recovery class, including $0.4 million in surcharge costs. 
Thus, the budgeted costs for this class, including the allocated 
surcharge costs, have been reduced by 25 percent since the last 
rebaselining in FY 1999. After subtracting the estimated part 170 
collections and other adjustments, the costs remaining to be recovered 
through annual fees assessed to the class for FY 2001 is $1.5 million, 
compared to $2.1 million for FY 1999, a reduction of approximately 29 
percent as reflected in the reduced annual fees to be assessed uranium 
recovery licensees for FY 2001.
    The NRC has no choice but to assess annual fees to NRC licensees to 
recover the budgeted costs not recovered through part 170 fees and 
other receipts. However, as stated in the proposed rule, to address 
fairness and equity concerns raised by the NRC related to assessing 
fees to NRC licensees to recover costs for activities that do not 
directly benefit them, the FY 2001 Energy and Water Development 
Appropriations Act amended OBRA-90 to reduce the NRC's fee recovery 
requirement by 2 percent per year beginning in FY 2001, until the fee 
recovery amount is 90 percent by FY 2005. This results in a reduction 
of $9.3 million in the total fees to be assessed to NRC licensees in FY 
2001, a reduction which is shared by all licensees, including uranium 
recovery licensees.
    The NRC has previously considered whether licensees in a standby 
status or awaiting approval of their reclamation plans should be 
granted a full or partial exemption from annual fees based on their 
non-operating status. For example, the NRC addressed this issue in 
response to comments on the FY 1991 rule (56 FR 31461; July 10, 1991), 
and further elaborated on it in 1995 in response to a petition for 
rulemaking from the American Mining Congress (now the National Mining 
Association) (60 FR 20918; April 28, 1995). The Commission currently 
believes that the existing policy of assessing annual fees based on 
whether a licensee holds a valid NRC license that authorizes possession 
and use, whether or not the facility is actively operating or in a 
standby status, represents the fairest option available under current 
legislation. This policy is based on the basic premise that the benefit 
the NRC provides a licensee is the authority to use licensed material. 
Whether or not to exercise that authority is a business decision of the 
licensee.
    Based on the fee recovery requirements of OBRA-90, reducing the 
number of licensees paying annual fees by granting relief for licensees 
in a standby status would increase the annual fees assessed to the 
remaining licensees. Providing such fee relief would add to the effects 
of decreasing numbers of licensees on annual fees, which continues to 
be of concern to commenters. Licensees in a standby status continue to 
benefit from NRC's generic guidance and rules applicable to the uranium 
recovery class of licensees and therefore should continue to pay annual 
fees.
    Although the comments indicate that annual fees are assessed to 
certain licensees because of a failure on NRC's part to approve their 
reclamation plans, this is not the case. The NRC waives the annual fee 
for those licensees who have

[[Page 32458]]

relinquished their authority to operate and have permanently ceased 
operations, as long as the notifications of such actions are filed by 
the dates provided in the fee regulations. The reclamation plans do not 
have to be approved by the NRC for the fee waiver to apply.
4. Quarterly Billing Schedule For Class I And Class II Licenses
    Comment. Two commenters supported the NRC's proposal to establish a 
quarterly annual fee billing schedule for Class I and Class II uranium 
recovery licensees, regardless of the annual fee amounts.
    Response. The NRC is modifying Sec. 171.19 in this final rule to 
establish a quarterly annual fee billing schedule for uranium mill 
licensees (Class I) and solution mining licensees (Class II). Because 
the annual fees for these licensees have been close to the $100,000 
threshold for quarterly billing, slight changes in the annual fees have 
resulted in frequent changes in their billing schedules. This change 
will provide these licensees with a consistent, predictable schedule 
for paying their annual fees.
5. Annual Fees for Power Reactors in Decommissioning
    Comment. The NRC received one comment concerning the spent fuel 
storage/reactor decommissioning annual fee. The commenter stated that 
the proposed 32 percent annual fee increase for this class of licensees 
is not equitable and places an undue burden on the licensees in the 
class. Comparing the proposed increased annual fee for the spent fuel 
storage/reactor decommissioning class to the proposed decreased annual 
fee for operating reactors, the commenter contends that the increase is 
an undue burden because the decommissioning plants do not generate 
revenue through the sale of electricity and have no guarantee of 
recovering additional costs by petitioning local public utility 
commissions.
    The commenter said that the additional costs would have to be 
assumed by existing plant decommissioning funds, which could affect the 
resources available for performing plant decommissioning in a timely 
manner. The commenter believes that at a minimum the fees should be 
only incrementally increased by approximately six percent per year, 
corresponding with the NRC phased budget reductions. The commenter 
believes that this suggested approach would be consistent with the 
intent of OBRA-90, as amended.
    Response. The rebaselined annual fees for FY 2001 reflect the 
budgeted costs for each class of licensees. Although NRC recognizes 
that there may be adverse economic impacts on those classes of 
licensees with annual fee increases, the NRC cannot mitigate the 
adverse economic impacts by eliminating or reducing the fee increases 
for one class without increasing the fees elsewhere, and thereby 
creating adverse economic impacts for another class of licensees.
    The increase in annual fees for the spent fuel storage/reactor 
decommissioning class of licensees reflects an increase in budgeted 
costs allocated to this class since the last annual fee rebaselining in 
FY 1999. For example, compared to FY 1999, there were increases in 
budgeted costs allocated to the spent fuel storage/reactor 
decommissioning class for waste safety research, for spent fuel storage 
licensing and inspection activities, and for rulemaking. Recovering the 
costs associated with spent fuel storage and reactor decommissioning 
from operating power reactors, reactors in decommissioning if they have 
fuel on site, and those Part 72 spent fuel storage licensees who do not 
hold a part 50 license is consistent with the intent of OBRA-90 that 
NRC's resources be allocated among licensees or classes of licensees, 
so that the licensees who require the greatest expenditure of the NRC's 
resources will pay the greatest annual fee.
    Because these costs are budgeted for activities related to the 
spent fuel storage/reactor decommissioning class, there is no basis to 
limit the fee increases that are necessary to recover the budgeted 
costs from the class. However, based on revised part 170 estimated 
collections for FY 2001, the annual fee in this final rule for each 
licensee in the spent fuel storage/reactor decommissioning class is 
$266,000, which is $9,000 less than the proposed annual fee of 
$275,000.
    In addition to reactor licensees in decommissioning, operating 
reactors and part 72 licensees that do not hold a part 50 license will 
also be assessed the increased FY 2001 spent fuel storage/reactor 
decommissioning annual fee. The decrease in total FY 2001 annual fees 
for operating power reactors is due to reduced budgeted costs for the 
operating power reactor class compared to FY 1999.
6. Annual Fees for Fuel Facilities
    Comment. One fuel facility licensee commented that the proposed fee 
increase for fuel facilities would result in a financial burden that 
counteracts the cost control and reduction efforts that are being 
implemented by licensees in the class in order to effectively compete 
in world markets. The commenter also indicated that the proposed rule 
did not provide the basis for the increase in fuel facility budgeted 
costs and therefore it was difficult to determine if they are fair and 
equitable. Another fuel facility licensee referenced its March 13, 
2001, request for a downgrade of its license and a reduction in the 
annual fee, and its March 29, 2001, request for a license amendment to 
reflect certain discontinued operations for purposes of downgrading the 
license. The commenter stated that as a result of their request, the 
fee rule should reflect the downgrade of the license from Category 
1.A.(1)(b) to Category 1.A.(2)(a) and the FY 2001 annual fee should be 
prorated accordingly.
    Response. The rebaselined annual fees for FY 2001 have been 
established based on the budgeted costs allocated to each class of 
licensees, less the estimated Part 170 collections and other 
adjustments for each class. The FY 2001 annual fees decreased for many 
categories of licensees compared to FY 2000, and increased for others. 
The NRC recognizes that the FY 2001 annual fees may have an adverse 
impact on those classes of licensees with annual fee increases. 
However, the rebaselined fees represent a fair and equitable allocation 
of NRC's FY 2001 budgeted costs to the various classes of licensees. 
The work papers supporting the proposed rule and this final rule show 
in detail the allocation of the budgeted costs for each planned 
accomplishment within the NRC's major programs to the various classes 
of licensees, and how the fees are calculated. As the NRC stated in the 
proposed rule (66 FR 16982, March 28, 2001), the work papers for the 
proposed rule are available in ADAMS, and during the 30-day comment 
period they were also available in the PDR for review. As shown in the 
ADDRESSES section, the work papers for this final rule are also 
available in ADAMS, and will be available in the PDR for review for a 
period of 90 days from the date this final rule is published in the 
Federal Register.
    Cost control measures that a class of licensees might take do not 
affect the amount of the budget that the NRC is required to recover 
from that class through annual fees. Similarly, as the NRC has 
indicated in several previous fee rulemakings, the NRC does not set 
fees based on factors such as size, ability to pay, or other economic 
factors. In order to meet the requirements of OBRA-90, the NRC is 
unable to reduce

[[Page 32459]]

the fees assessed to one class of licensees without increasing the fees 
assessed to other classes. Therefore, as stated previously, the NRC has 
only given consideration to the effects it is required to consider by 
law. As reflected in the Regulatory Flexibility Analysis, Appendix A to 
this final rule, the NRC has determined that a maximum annual fee for 
small entities strikes a balance between the fee recovery requirements 
of OBRA-90, as amended, and the requirement of the Regulatory 
Flexibility Act to consider means to reduce the impact of the fees on 
small entities.
    In FY 1995, after notice and comment rulemaking, the NRC 
established the current methodology for determining annual fees for 
fuel facilities. This methodology results in the reasonable grouping of 
fuel facility licenses into fee categories according to the licensed 
operations and the level, scope, depth of coverage, and rigor of 
generic regulatory programmatic efforts. The programmatic efforts 
reflect the safety and safeguards significance associated with the 
authorized nuclear material and use/activity, and the commensurate 
generic regulatory program (i.e., scope, depth and rigor). A matrix 
depicts the categorization of the fuel facility licenses based on these 
factors.
    The NRC has modified the matrix based on the notification 
referenced by one commenter that, prior to March 31, 2001, it had 
permanently ceased certain licensed operations. The revised matrix 
reflects the licensee's cessation of conversion of uranium hexafluoride 
(UF6) to uranium oxide (UO2) and removal of the 
remaining UF6 from the facility prior to March 31, 2001. The 
NRC has determined, however, that the reduced activities do not 
diminish the licensee's total safety and safeguards effort factors and 
the commensurate generic regulatory program to the extent that it will 
place the license in the next lower fee category. The NRC will respond 
separately to the specific issues raised in the commenter's March 13, 
2001, letter requesting that the license be placed in a lower fee 
category.
    The revised matrix results in a redistribution of the safety and 
safeguards costs among the fuel fabrication categories. Accordingly, 
the annual fees for licensees in the fuel facility categories in this 
final rule have changed from the amounts shown in the proposed rule. 
The final annual fees for the various fuel facility categories also 
reflect an increase in estimated Part 170 collections for the fuel 
facility class for FY 2001 compared to the proposed rule. The final 
annual fees for the various fuel facility categories are shown in 
Sec. 171.31.

D. Other Issues

1. NRC's Budget
    Comment. One commenter offered several suggestions for reducing 
NRC's budget and for more efficient use of NRC resources. The commenter 
indicates that the proposed rule does not account for a reduced number 
of regional initiative inspections. The commenter suggested that 
further improvements in inspection and assessment efficiency could be 
realized by NRC's participation and oversight of licensee self-
assessments, rather than NRC conducting independent inspections. The 
commenter also suggested that the NRC review the scope and content of 
inspection procedures to make them further risk-informed, that the NRC 
eliminate resources oriented to minimally safety-significant areas, and 
that the NRC consider consolidating the regional offices in the near-
term and eliminating them in the longer term.
    Response. As stated in the response to the comment concerning 
information the NRC provided in support of the proposed and in response 
to similar comments on previous fee rules, the NRC's budgets and the 
manner in which the NRC carries out its activities are not within the 
scope of this rulemaking. Therefore, this final rule does not address 
the commenter's suggestions concerning NRC's budget and the use of NRC 
resources. The NRC's budgets are submitted to the Office of Management 
and Budget and then to Congress for review and approval. The 
Congressionally-approved budget resulting from this process reflects 
the resources necessary for NRC to carry out its statutory obligations. 
In compliance with OBRA-90, the fees are established to recover the 
required percentage of the approved budget.
    However, it should be noted that the NRC's budget reflects its 
efforts to be effective and efficient. Since FY 1993, the NRC budget 
has been reduced by more than $25 million in current year dollars and 
by more than $140 million or 25 percent in constant dollars. Over this 
same timeframe the staffing of the NRC has been reduced by 
approximately 600 FTE or 18 percent. To achieve these reductions, the 
NRC has eliminated programs, improved processes, reduced overhead 
requirements, and implemented efficiencies and cost savings. The 
Commission continues to search vigorously for additional opportunities 
to streamline its operations and to achieve efficiencies.

III. Final Action

    The NRC is amending its licensing, inspection, and annual fees to 
recover approximately 98 percent of its FY 2001 budget authority, 
including the budget authority for its Office of the Inspector General, 
less the appropriations received from the NWF and the General Fund. The 
NRC's total budget authority for FY 2001 is $487.3 million, of which 
$21.6 million has been appropriated from the NWF. In addition, $3.2 
million has been appropriated from the General Fund for activities 
related to regulatory reviews and assistance provided to other Federal 
agencies and States. In the proposed rule, the total budget was shown 
as $487.4 million. However, a rescission reduced the total budget 
authority by approximately $75.0 thousand. This rescission did not 
affect the fee recovery portion of the budget and, therefore, the fee 
recovery amounts have not changed from the proposed rule. Based on the 
98 percent fee recovery requirement, the NRC must collect approximately 
$453.3 million in FY 2001 through Part 170 licensing and inspection 
fees, Part 171 annual fees, and other offsetting receipts. The total 
amount to be recovered through fees and other offsetting receipts for 
FY 2001 is $6.3 million more than the amount estimated for recovery in 
FY 2000. However, the FY 2001 fee recovery amount is further reduced by 
a $3.1 million carryover from additional collections in FY 2000 that 
were unanticipated at the time the final FY 2000 fee rule was 
published. This leaves approximately $450.2 million to be recovered in 
FY 2001 through Part 170 licensing and inspection fees, Part 171 annual 
fees, and other offsetting receipts.
    The NRC estimates that approximately $118.2 million will be 
recovered in FY 2001 from Part 170 fees and other offsetting receipts. 
The NRC also estimates a net adjustment for FY 2001 of approximately 
$0.4 million for payments received in FY 2001 for FY 2000 invoices. The 
remaining $332.0 million is to be recovered through the part 171 annual 
fees, compared to $341.0 million for FY 2000.
    Table I summarizes the budget and fee recovery amounts for FY 2001.

          Table I.--Budget and Fee Recovery Amounts for FY 2001
                          [Dollars in millions]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Budget Authority.......................................     $487.3
    Less NWF.................................................      -21.6
    Less General Fund........................................       -3.2
                                                              ----------
      Balance................................................     $462.5

[[Page 32460]]

 
    Fee Recovery Rate for FY 2001............................    x 98.0%
                                                              ----------
Total Amount to be Recovered For FY 2001.....................     $453.3
    Less Carryover from FY 2000..............................       -3.1
                                                              ----------
Amount to be Recovered Through Fees and Other Receipts.......     $450.2
    Less Estimated Part 170 Fees and Other Receipts..........     -118.2
                                                              ----------
Part 171  Fee Collections Required...........................     $332.0
                                                              ==========
Part 171  Billing Adjustments................................
    Unpaid FY 2001 Invoices (estimated)......................        3.2
    Less Payments Received in FY 2001 for Prior Year Invoices       -3.6
     (estimated).............................................
                                                              ----------
      Subtotal...............................................       -0.4
                                                              ==========
Adjusted Part 171  Collections Required......................     $331.6
------------------------------------------------------------------------

    The final FY 2001 fee rule is a ``major'' final action as defined 
by the Small Business Regulatory Enforcement Fairness Act of 1996. 
Therefore, the NRC's fees for FY 2001 will become effective 60 days 
after publication of the final rule in the Federal Register. The NRC 
will send an invoice for the amount of the annual fee to reactors and 
major fuel cycle facilities upon publication of the FY 2001 final rule. 
For these licensees, payment will be due on the effective date of the 
FY 2001 rule. Those materials licensees whose license anniversary date 
during FY 2001 falls before the effective date of the final FY 2001 
rule will be billed for the annual fee during the anniversary month of 
the license at the FY 2000 annual fee rate. Those materials licensees 
whose license anniversary date falls on or after the effective date of 
the final FY 2001 rule will be billed for the annual fee at the FY 2001 
annual fee rate during the anniversary month of the license, and 
payment will be due on the date of the invoice.
    In accordance with its FY 1998 announcement, the NRC has 
discontinued mailing the final rule to all licensees as a cost-saving 
measure. Accordingly, the NRC does not plan to routinely mail the FY 
2001 final rule or future final rules to licensees. However, the NRC 
will send the final rule to any licensee or other person upon request. 
To request a copy, contact the License Fee and Accounts Receivable 
Branch, Division of Accounting and Finance, Office of the Chief 
Financial Officer, at 301-415-7554, or e-mail us at [email protected]. In 
addition to publication in the Federal Register, the final rule will be 
available on the Internet at http://ruleforum.llnl.gov.
    The NRC is amending 10 CFR parts 170 and 171 as discussed in 
Sections A and B below.

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

    The NRC is revising the hourly rates used to calculate fees and is 
adjusting the 10 CFR part 170 fees based on the revised hourly rates 
and the results of the NRC's biennial review of fees required by the 
Chief Financial Officer (CFO) Act of 1990 (Pub. L. 101-578, Nov. 15, 
1990, 104 Stat. 2838) (CFO Act). Additionally, the NRC is eliminating 
the fees currently assessed to Agreement State licensees who file 
revisions to the information submitted on their initial filing of NRC 
Form 241, ``Report of Proposed Activities in Non-Agreement States,'' 
and including the costs for these revisions in the application fees 
assessed for the initial Form 241. The NRC is also establishing an 
annual registration fee of $450 to be assessed for part 31 general 
licensees required to register certain types of generally licensed 
devices. These final revisions are further discussed below.
    The final amendments are as follows:
1. Hourly Rates
    The NRC is revising the two professional hourly rates for NRC staff 
time established in Sec. 170.20. These rates are based on the number of 
FY 2001 direct program full time equivalents (FTEs) and the FY 2001 NRC 
budget, excluding direct program support costs and NRC's appropriations 
from the NWF and the General Fund. These rates are used to determine 
the Part 170 fees. The hourly rate for the reactor program is $150 per 
hour ($266,997 per direct FTE). This rate is applicable to all 
activities for which fees are assessed under Sec. 170.21 of the fee 
regulations. The hourly rate for the nuclear materials and nuclear 
waste program is $144 per hour ($255,563 per direct FTE). This rate is 
applicable to all activities for which fees are assessed under 
Sec. 170.31 of the fee regulations. In the FY 2000 final fee rule, the 
reactor and materials program rates were $144 and $143, respectively. 
The increases are primarily due to the Government-wide pay increase in 
FY 2001.
    The method used to determine the two professional hourly rates is 
as follows:
    a. Direct program FTE levels are identified for the reactor program 
and the nuclear material and waste program.
    b. Direct contract support, which is the use of contract or other 
services in support of the line organization's direct program, is 
excluded from the calculation of the hourly rates because the costs for 
direct contract support are charged directly through the various 
categories of fees.
    c. All other program costs (i.e., Salaries and Benefits, Travel) 
represent ``in-house'' costs and are to be collected by dividing them 
uniformly by the total number of direct FTEs for the program. In 
addition, salaries and benefits plus contracts for non-program direct 
management and support, and for the Office of the Inspector General, 
are allocated to each program based on that program's direct costs. 
This method results in the following costs which are included in the 
hourly rates.

      Table II.--FY 2001 Budget Authority Included in Hourly Rates
------------------------------------------------------------------------
                                                            Materials
                                       Reactor program       program
------------------------------------------------------------------------
Direct Program Salaries & Benefits..           $107.8M            $31.3M
Overhead Salaries & Benefits,                    56.1M             15.0M
 Program Travel and Other Support...
Allocated Agency Management and                 100.8M             28.5M
 Support............................
                                     -----------------------------------
      Subtotal......................           $264.7M            $74.8M
Less offsetting receipts............             -0.1M
                                     -----------------------------------
      Total Budget Included in                 $264.6M            $74.8M
       Hourly Rate..................
Program Direct FTEs.................             991.0             292.7

[[Page 32461]]

 
Rate per Direct FTE.................          $266,997          $255,563
Professional Hourly Rate (Rate per                $150              $144
 direct FTE divided by 1,776 hours).
------------------------------------------------------------------------

    As shown in Table II, dividing the $264.6 million (rounded) 
budgeted amount included in the hourly rate for the reactor program by 
the reactor program direct FTEs (991.0) results in a rate for the 
reactor program of $266,997 per FTE for FY 2001. The Direct FTE Hourly 
Rate for the reactor program is $150 per hour (rounded to the nearest 
whole dollar). This rate is calculated by dividing the cost per direct 
FTE ($266,997) by the number of productive hours in one year (1,776 
hours) as set forth in the revised OMB Circular A-76, ``Performance of 
Commercial Activities.'' Similarly, dividing the $74.8 million 
(rounded) budgeted amount included in the hourly rate for the nuclear 
materials and nuclear waste program by the program direct FTEs (292.7) 
results in a rate of $255,563 per FTE for FY 2001. The Direct FTE 
Hourly Rate for the materials program is $144 per hour (rounded to the 
nearest whole dollar). This rate is calculated by dividing the cost per 
direct FTE ($255,563) by the number of productive hours in one year 
(1,776 hours).
2. Fee Adjustments
    The NRC is adjusting the current part 170 fees in Secs. 170.21 and 
170.31 to reflect both the changes in the revised hourly rates and the 
results of the biennial review of part 170 fees required by the CFO 
Act. To comply with the requirements of the CFO Act, the NRC has 
evaluated historical professional staff hours used to process a new 
license application for those materials licensees whose fees are based 
on the average cost method, or ``flat'' fees. This review also included 
new license and amendment applications for import and export licenses.
    Evaluation of the historical data shows that fees based on the 
average number of professional staff hours required to complete 
materials licensing actions should be increased in some categories and 
decreased in others, as described below, to more accurately reflect 
current costs incurred in completing these licensing actions. The data 
for the average number of professional staff hours needed to complete 
new licensing actions was last updated in FY 1999 (64 FR 31448; June 
10, 1999). Thus, the revised average professional staff hours reflect 
the changes in the NRC licensing review program that have occurred 
since FY 1999.
    In summary, the final licensing fees reflect an increase in average 
time for new license applications for seven of 33 materials fee 
categories included in the biennial review, a decrease in average time 
for five fee categories, and the same average time for the remaining 21 
fee categories. Similarly, the average time for applications for new 
export and import licenses and for amendments to export and import 
licenses remained the same for eight fee categories in Secs. 170.21 and 
170.31, and decreased for two other fee categories.
    The revised licensing fees are based on the new average 
professional staff hours needed to process the licensing actions 
multiplied by the proposed professional hourly rate for FY 2001. The 
amounts of the materials licensing ``flat'' fees are rounded as 
follows: fees under $1,000 are rounded to the nearest $10, fees that 
are greater than $1,000 but less than $100,000 are rounded to the 
nearest $100, and fees that are greater than $100,000 are rounded to 
the nearest $1,000.
    The licensing ``flat'' fees are applicable to fee categories K.1 
through K.5 of Sec. 170.21, and fee categories 1C, 1D, 2B, 2C, 3A 
through 3P, 4B through 9D, 10B, 15A through 15E, and 16 of Sec. 170.31. 
An additional change to Category 16 is discussed in item 3. below. 
Applications filed on or after the effective date of the final rule 
will be subject to the revised fees in this final rule.
3. Fees for Revisions to Initial Reciprocity Applications
    The NRC has taken several actions in the past few years to 
streamline and stabilize fees assessed to materials user licensees 
subject to ``flat'' fees. These actions included elimination of the 
inspection, renewal, and amendment fees from part 170, and inclusion of 
the costs for these activities in the part 171 annual fees. Materials 
user licensees affected by these changes have responded favorably to 
the elimination of multiple types of individual fees.
    The NRC is taking a similar streamlining action for certain 
submittals from Agreement State licensees operating in areas under NRC 
jurisdiction under the part 150 reciprocity provisions. Currently, a 
part 170 fee of $1,200 is charged for each initial filing of NRC Form 
241, ``Report of Proposed Activities in Non-Agreement States,'' and an 
additional fee of $200 is charged for each revision to the information 
submitted on the initial NRC Form 241. Revisions are filed to request 
approval for work locations, radioactive materials, or work activities 
different from those submitted on the initial NRC Form 241. In FY 2000, 
only $23,000 was collected for 115 revisions.
    The NRC has eliminated the revision fees and included the costs for 
processing them in the fee assessed for each initial reciprocity 
application. For those revisions filed on or after the effective date 
of this final rule, the reciprocity applicants will no longer be 
required to submit payments with their revision requests. In addition 
to the convenience for the reciprocity applicants, this will also 
eliminate the NRC's administrative burden of processing the revisions 
for fee collection purposes. This change plus the increase in the 
hourly rate results in an increase in the application fee, from $1,200 
to $1,400. The costs of the reciprocity program will still be recovered 
from those receiving the benefit of the NRC's reciprocity activities. 
It is the NRC's belief that the nominal increase to the application fee 
and any potential inequities that might result because not all 
reciprocity licensees file revisions during the year are outweighed by 
the efficiencies to be gained by both the reciprocity applicants and 
the NRC in streamlining the process.
    A conforming revision to 10 CFR 150.20(b)(2) has also been made to 
reflect this change.
4. Fees for General License Registrations
    The NRC has established an application fee of $450 for 
registrations filed in accordance with 10 CFR 31.5 for certain 
generally licensed devices. The NRC published a proposed rule in the 
Federal Register on July 26, 1999 (64 FR 40295), stating its intent to 
amend current regulations governing the use of byproduct material in 
certain measuring, gauging, or controlling devices. The proposed 
amendments

[[Page 32462]]

included adding explicit requirements for a registration process under 
10 CFR 31.5 for certain generally licensed devices; establishing a 
registration fee; modifying reporting, record-keeping, and labeling 
requirements; and clarifying which provisions of the regulations apply 
to all general licenses for byproduct material. The NRC stated in the 
proposed rule that the registration fee would recover the costs for 
obtaining and maintaining information associated with the devices 
subject to the registration requirement, processing and reviewing the 
registrations, and for inspections and follow-up efforts expected to be 
made as a result of the registration process identifying noncompliance 
with existing regulations. The fee would be based on the average cost 
of the program for each of the licensees registering devices. Some of 
the general licensees, such as non-profit educational institutions, 
would be exempt from the fee under Sec. 170.11. Costs not recovered 
from this small segment of the general licensees registering devices 
would continue to be recovered from annual fees paid by current holders 
of specific licenses. The NRC also stated in the proposed rule that the 
requirement for the registration fee would be effective after the 
initial registration requests are sent for response under Sec. 31.5(c). 
In this manner, the first round of registrations will be complete 
before the requirement for the registration fee goes into effect.
    The NRC published a final rule on December 18, 2000 (65 FR 79162), 
amending 10 CFR Parts 30, 31, and 32 to explicitly require that certain 
general licensees register their generally licensed devices with the 
NRC each year and pay the appropriate registration fee. Therein the NRC 
stated that the final fee, estimated at approximately $440 to $450, 
would be established in the FY 2001 fee rulemaking based on that year's 
budgeted costs for the program, the new FTE rate, and the estimated 
number of general licensees required to register.
    The NRC currently estimates that approximately 4300 general 
licensees will be required to register their generally licensed 
devices. The $450 registration fee is based on the estimated number of 
registrants, current resource estimates, and the FY 2001 FTE rate. The 
registration fee will be imposed beginning with the first re-
registration of devices currently in use. The registration fee will be 
required for each annual re-registration of the devices and for all new 
registrations of devices acquired after the registration program is 
fully implemented.
    Because this is a ``flat'' fee based on average cost, it will be 
reviewed biennially as required by the CFO Act. The registration fee 
established in this FY 2001 final fee rule will not change until the 
next biennial review of fees in FY 2003.
5. Fee Waivers
    To clarify the intent of the fee waiver provision for certain 
reports filed with the NRC for review and approval, the NRC is 
modifying the current criterion 3. of Footnote 4 to Sec. 170.21 and 
criterion (c) of Footnote 5 to Sec. 170.31 to specifically state that 
the review and approval of the reports must support NRC's generic 
regulatory improvements or efforts. In addition, criteria 1., 2., and 
3. of Footnote 4 to Sec. 170.21 have been redesignated as criteria (a), 
(b), and (c).
    In the recent past, several requests for part 170 fee exemptions 
have been filed by licensees and various organizations who submit 
topical reports or other documents to the NRC for review. Part 170 
currently provides that fees will not be assessed for requests or 
reports submitted to the NRC in response to an NRC inquiry to resolve 
an identified safety, safeguards, or environmental issue; or to assist 
the NRC in developing a rule, regulatory guide, policy statement, 
generic letter or bulletin; or as a means of exchanging information 
between industry organizations and the NRC for the purpose of 
supporting generic regulatory improvements or efforts. Many of the fee 
exemption requests have been denied because the submittals have not met 
the intent of the waiver provision. For example, several fee waiver 
requests were based on the industry's future use of the reports, rather 
than these reports being submitted, reviewed, and approved for the 
purpose of NRC's generic regulatory improvements.
    In the statement of considerations for the FY 1994 fee rule (59 FR 
36895; July 20, 1994), which incorporated this fee waiver provision, 
the NRC stated that it believed the costs for some requests or reports 
filed with the NRC are more appropriately captured in the part 171 
annual fees rather than assessing specific fees under part 170. The 
statement of considerations continued to state that these reports, 
although submitted by a specific organization, support NRC's 
development of generic guidance and regulations and resolution of 
safety issues applicable to a class of licensee.
    In summary, the NRC is amending 10 CFR part 170 to--
    1. Revise the material and reactor program FTE hourly rates;
    2. Revise the licensing fees to be assessed to reflect the revised 
hourly rates and to comply with the CFO Act requirement that fees be 
reviewed biennially and revised as necessary to reflect the cost to the 
agency;
    3. Eliminate fees for Agreement State licensees who submit 
revisions to their initial requests for reciprocity in States under NRC 
jurisdiction, and incorporate these costs into the initial reciprocity 
application fee;
    4. Establish registration fees to be assessed for each registration 
or re-registration of generally licensed devices under 10 CFR 31.5, 
beginning with the first re-registration of those generally licensed 
devices currently in use; and
    5. Clarify that the fee waiver provisions of the current criterion 
3. of Footnote 4 to Sec. 170.21 and criterion (c) of Footnote 5 to 
Sec. 170.31 apply only to requests/reports submitted to the NRC for the 
purpose of supporting NRC's generic regulatory improvements or efforts, 
and redesignate criteria 1., 2., and 3., of Footnote 4 to Sec. 170.21 
as criteria (a), (b), and (c).

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

    The NRC is revising the annual fees for FY 2001. The NRC is also 
adopting its proposal to discontinue mailing NRC Form 526, 
``Certification of Small Entity Status for the Purposes of Annual Fees 
Imposed under 10 CFR part 171'' with each materials license annual fee 
invoice. The amendments are as follows.
1. Annual Fees
    The NRC is amending Secs. 171.15 and 171.16 to establish 
rebaselined annual fees for FY 2001. The Commission's policy 
commitment, made in the statement of considerations accompanying the FY 
1995 fee rule (60 FR 32225; June 20, 1995) and further explained in the 
statement of considerations accompanying the FY 1999 fee rule (64 FR 
31448; June 10, 1999), establishes that base annual fees will be re-
established (rebaselined) at least every third year, and more 
frequently if there is a substantial change in the total NRC budget or 
in the magnitude of the budget allocated to a specific class of 
licensees. The fees were last rebaselined in FY 1999. After carefully 
considering all factors, including the changes to the amount of the 
budget allocated to classes of licensees, and weighing the complex 
issues related to both fairness and

[[Page 32463]]

stability of fees, the Commission has determined that it is appropriate 
to rebaseline the annual fees this year. Rebaselining fees results in 
reduced annual fees for a majority of the categories of licenses and 
increased annual fees for other categories.
    Although the NRC is sensitive to the effects the rebaselined fees 
will have on those licensees with fee increases, establishing new 
baseline annual fees this year results in a more precise relationship 
between annual fees and NRC costs of providing services. It thus 
constitutes one means to fairly and equitably allocate costs among the 
NRC's licensees.
    The annual fees in Secs. 171.15 and 171.16 are revised to recover 
approximately 98 percent of the NRC's FY 2001 budget authority, less 
fees collected under 10 CFR part 170 and funds appropriated from the 
NWF and the General Fund. The total amount to be recovered through 
annual fees for FY 2001 is $331.6 million, compared to $341.0 million 
for FY 2000.
    The FY 2001 annual fees reflect an increase for some categories of 
licensees and a decrease for others from the previous year. The 
decreases in annual fees range from approximately 2.2 percent for 
operating power reactor licensees (including the spent fuel storage/
reactor decommissioning annual fee), to approximately 29.0 percent for 
uranium recovery licensees. The increases in annual fees range from 
approximately 2.6 percent for materials licenses authorizing 
distribution of radiopharmaceuticals, to approximately 165.2 percent 
for transportation quality assurance program approvals authorizing use 
only.
    The annual fees in this final rule for operating power reactors, 
spent fuel storage/reactor decommissioning, and fuel facilities are 
less than the proposed annual fees based on the final estimated part 
170 collections for FY 2001. In addition, the final annual fees for 
fuel facilities reflect a redistribution of budgeted costs among the 
fuel facility categories. This redistribution is explained in detail in 
Section III., Final Action.
    Factors affecting the changes to the annual fee amounts include 
changes in budgeted costs affecting the classes of licensees, the 
reduction in the fee recovery rate from 100 percent for FY 2000 to 98 
percent for FY 2001, the estimated part 170 collections for the various 
classes of licensees, a $3.1 million carryover from additional 
collections in FY 2000 that were unanticipated at the time the final FY 
2000 fee rule was published, the increased hourly rates, decreases in 
the numbers of licensees for certain categories of licenses, and, for 
the materials user class, the results of the biennial review of Part 
170 fees required by the CFO Act. The biennial review shows that the 
average number of professional hours to conduct inspections and to 
review new license applications for materials licenses increased for 
some fee categories, decreased for others, or remained the same. The 
average time to conduct inspections and to review new license 
applications for the materials user license fee categories serve as 
accurate measures of the complexity of the licenses and, therefore, are 
used to allocate the materials budget for rebaselining the annual fees. 
Increases in the average professional time for inspections and reviews 
of new license applications result in higher annual fees for the 
affected fee categories, assuming all else remains the same (e.g., no 
loss of licensees).
    The increase in annual fees (from $2,300 to $6,100) for 
transportation quality assurance approvals authorizing use only, which 
have the largest percentage increase, is due in part to the allocation 
of budgeted costs for the enhanced participatory part 71 rulemaking, 
headquarters and regional allegation and enforcement follow-up 
activities, and the Office of Nuclear Material Safety and Safeguards' 
risk study activities. In addition, there has been a decrease in the 
amount of budgeted costs allocated for part 71 vendor inspections while 
the allocation of budgeted costs for quality assurance reviews remained 
about the same. The ratio of the budgeted costs for these activities is 
currently used to allocate the total annual fee amount for the 
transportation class, less the amount allocated to DOE for its 
certificates of compliance, between the quality assurance approvals 
authorizing use only and those that authorize use and fabrication/
design. As a result of the decrease in budgeted costs for part 71 
vendor inspections, a larger percentage of the total annual fee amount 
for the transportation class has been allocated to quality assurance 
approvals authorizing use only than in the past.
    Table III below shows the rebaselined annual fees for FY 2001 for 
representative categories of licensees.

             Table III.--Rebaselined Annual Fees for FY 2001
------------------------------------------------------------------------
                                                               FY 2001
                     Class of licensees                       annual fee
------------------------------------------------------------------------
Power Reactors (including Spent Fuel Storage/Reactor         $2,753,000.
 Decommissioning annual fee)...............................
Spent Fuel Storage/Reactor Decommissioning.................      266,000
Nonpower Reactors..........................................       74,000
High Enriched Uranium Fuel Facility........................    3,545,000
Low Enriched Uranium Fuel Facility.........................    1,146,000
UF6 Conversion Facility....................................      509,000
Uranium Mills..............................................       94,300
Transportation:
  Users/Fabricators........................................       62,500
  Users Only...............................................        6,100
Typical Materials Users:
  Radiographers............................................       12,500
  Well Loggers.............................................        8,800
  Gauge Users..............................................        2,400
  Broad Scope Medical......................................       24,200
------------------------------------------------------------------------

    The annual fees assessed to each class of licensees include a 
surcharge to recover those NRC budgeted costs that are not directly or 
solely attributable to the classes of licensees, but must be recovered 
from licensees to comply with the requirements of OBRA-90, as amended. 
Based on the amendment to OBRA-90 that reduced the NRC's fee recovery 
requirement by 2 percent for FY 2001, from 100 percent to 98 percent of 
the NRC's budget authority, the total surcharge costs to be recovered 
through annual fees has been reduced by about $9.3 million. The total 
FY 2001 budgeted costs for these activities and the reduction to these 
amounts for fee recovery purposes are shown in Table IV. All dollar 
amounts in the Table are rounded.

                       Table IV.--Surcharge Costs
                          [Dollars in Millions]
------------------------------------------------------------------------
                                                       FY 2001  Budgeted
                  Category of costs                          costs
------------------------------------------------------------------------
1. Activities not attributable to an existing NRC
 licensee or class of licensee:
    a. International activities......................               $6.0
    b. Agreement State oversight.....................                7.1
    c. Low-level waste disposal generic activities...                1.7

[[Page 32464]]

 
    d. Site decommissioning management plan                          7.3
     activities not recovered under Part 170.........
2. Activities not assessed Part 170 licensing and
 inspection fees or Part 171 annual fees based on
 existing law or Commission policy:
    a. Fee exemption for nonprofit educational                       8.1
     institutions....................................
    b. Licensing and inspection activities associated                3.9
     with other Federal Agencies.....................
    c. Costs not recovered from small entities under                 5.6
     10 CFR 171.16(c)................................
3. Activities supporting NRC operating licensees and
 others:
    a. Regulatory support to Agreement States........               14.4
    b. Generic decommissioning/reclamation (except                   3.4
     those related to power reactors)................
                                                      ------------------
      Total surcharge costs..........................               57.6
Less 2 percent of NRC's FY 2001 total budget (minus                 -9.3
 NWF and General Fund amounts).......................
                                                      ------------------
      Total Surcharge Costs to be Recovered..........              $48.3
------------------------------------------------------------------------

    As shown in Table IV, the total surcharge cost allocated to the 
various classes of licensees for FY 2001 is $48.3 million. The NRC has 
continued to allocate the surcharge costs, except Low-Level Waste (LLW) 
surcharge costs, to each class of licensees based on the percent of 
budget for that class. The NRC has continued to allocate the LLW 
surcharge costs based on the volume of LLW disposed of by certain 
classes of licensees. The surcharge costs allocated to each class are 
included in the annual fee assessed to each licensee. The FY 2001 
surcharge costs allocated to each class of licensees are shown in Table 
V.

                                        Table V--Allocation of Surcharge
                              [All dollar amounts are in millions and are rounded]
----------------------------------------------------------------------------------------------------------------
                                                       LLW surcharge           Non-LLW surcharge        Total
                                                ----------------------------------------------------  surcharge
                                                   Percent       Amount      Percent       Amount       amount
----------------------------------------------------------------------------------------------------------------
Operating Power Reactors.......................           74         $1.3         79.1        $36.9        $38.2
Spent Fuel Storage/Reactor Decomm..............  ...........  ...........          9.2          4.3          4.3
Nonpower Reactors..............................  ...........  ...........          0.1          0.0          0.0
Fuel Facilities................................            8          0.1          5.3          2.5          2.6
Materials Users................................           18          0.3          3.9          1.8          2.1
Transportation.................................  ...........  ...........          1.2          0.5          0.5
Rare Earth Facilities..........................  ...........  ...........          0.2          0.1          0.1
Uranium Recovery...............................  ...........  ...........          1.0          0.4          0.4
                                                             -------------             -------------------------
      Total Surcharge..........................  ...........          1.7  ...........         46.6         48.3
----------------------------------------------------------------------------------------------------------------

    The budgeted costs allocated to each class of licensees and the 
calculations of the rebaselined fees are described in A through H 
below. The work papers which support this final rule show in detail the 
allocation of NRC's budgeted resources for each class of licensee and 
how the fees are calculated. The work papers are available 
electronically at the NRC's Public Electronic Reading Room on the 
Internet at Website address http://www.gov/NRC/ADAMS/index.html. For a 
period of 90 days after the effective date of this final rule, the work 
papers may also be examined at the NRC Public Document Room located at 
One White Flint North, Room O-1F22, 11555 Rockville Pike, Rockville, MD 
20852-2738.
    Because the FY 2001 fee rule is a ``major'' final action as defined 
by the Small Business Regulatory Enforcement Fairness Act of 1996, the 
NRC's fees for FY 2001 will become effective 60 days after publication 
of the final rule in the Federal Register. The NRC will send an invoice 
for the amount of the annual fee upon publication of the FY 2001 final 
rule to reactors and major fuel cycle facilities. For these licensees, 
payment will be due on the effective date of the FY 2001 rule. Those 
materials licensees whose license anniversary date during FY 2001 falls 
before the effective date of the FY 2001 final rule will be billed for 
the annual fee during the anniversary month of the license, and 
continue to pay annual fees at the FY 2000 rate in FY 2001. However, 
those materials licensees whose license anniversary date falls on or 
after the effective date of the FY 2001 final rule will be billed for 
the annual fee at the FY 2001 rate during the anniversary month of the 
license, and payment will be due on the date of the invoice.
    a. Fuel Facilities. The FY 2001 budgeted costs to be recovered in 
annual fees assessed to the fuel facility class of licensees is 
approximately $17.4 million. This amount includes the LLW and other 
surcharges allocated to the fuel facility class. The costs are 
allocated to the individual fuel facility licensees based on the fuel 
facility matrix established in the FY 1999 final fee rule (64 FR 31448; 
June 10, 1999), as modified for FY 2001 to reflect a change in 
programmatic efforts related to the low enriched uranium fuel facility 
category. In this matrix, licensees are grouped into five categories 
according to their licensed activities (i.e., nuclear material 
enrichment, processing operations, and material form) and according to 
the level, scope, depth of coverage, and rigor of generic regulatory 
programmatic effort applicable to each category from

[[Page 32465]]

a safety and safeguards perspective. This methodology can be applied to 
determine fees for new and current licensees, licensees in unique 
license situations, and certificate holders.
    The methodology allows for changes in the number of licensees or 
certificate holders, licensed-certified material/activities, and total 
programmatic resources to be recovered through annual fees. When a 
license or certificate is modified, this fuel facility fee methodology 
may result in a change in fee category and may have an effect on the 
fees assessed to other licensees and certificate holders. For example, 
if a fuel facility licensee amended its license/certificate in such a 
way that it resulted in the licensee not being subject to Part 171 fees 
applicable to fuel facilities, the budget for the safety and/or 
safeguards component would be spread among the remaining licensees/
certificate holders, and result in a higher fee for those remaining in 
that fee category.
    The matrix has been revised for this final rule based on a 
notification received in March 2001 from Westinghouse Electric Company, 
LLC (formerly CE Nuclear Power LLC), holder of License SNM-33, that it 
had permanently ceased certain licensed activities prior to March 31, 
2001. The revised matrix reflects the licensee's cessation of 
conversion of uranium hexafluoride (UF6 ) to uranium oxide 
(UO2 ) and removal of the remaining UF6 from the 
facility prior to March 31, 2001. Although the reduced activities do 
not diminish the licensee's total safety and safeguards effort factors 
and the commensurate generic regulatory program to the extent that it 
will place the license in the next lower fee category, it does result 
in a redistribution of the safety and safeguards costs among the fuel 
facility categories.
    The methodology is applied as follows. First, a fee category is 
assigned based on the nuclear material and activity authorized by the 
license or certificate. Although a licensee/ certificate holder may 
elect not to fully utilize a license/certificate, it is still used as 
the source for determining authorized nuclear material possession and 
use/activity. Next, the category and license/certificate information 
are used to determine where the licensee/certificate holder fits into 
the matrix. The matrix depicts the categorization of licensee/
certificate holders by authorized material types and use/activities and 
the relative programmatic effort associated with each category. The 
programmatic effort (expressed as a value in the matrix) reflects the 
safety and safeguards risk significance associated with the nuclear 
material and use/activity and the commensurate generic regulatory 
program (i.e., scope, depth, and rigor).
    The effort factors for the various subclasses of fuel facility 
licensees are summarized in the table below.

                                  Table VI.--Effort Factors for Fuel Facilities
----------------------------------------------------------------------------------------------------------------
                                                                             Effort factors
              Facility type                Number of  ----------------------------------------------------------
                                           facilities             Safety                      Safeguards
----------------------------------------------------------------------------------------------------------------
High Enriched Uranium Fuel..............            2  91 (33.5%)                    76 (55.1%)
Enrichment..............................            2  70 (25.7%)                    34 (24.6%)
Low Enriched Uranium Fuel...............            4  85 (31.3%)                    23 (16.7%)
UF6 Conversion..........................            1  8 (2.9%)                      3 (2.2%)
Limited Operations Facility.............            1  12 (4.4%)                     0 (0%)
Others..................................            1  6 (2.2%)                      2 (1.4%)
----------------------------------------------------------------------------------------------------------------

    Applying these factors to the safety, safeguards, and surcharge 
components of the $17.4 million total annual fee amount for the fuel 
facility class results in the annual fees for each licensee within the 
subcategories of this class summarized in the table below.

               TABLE VII.--Annual Fees for Fuel Facilities
------------------------------------------------------------------------
                                                               FY 2001
                       Facility type                          annual fee
------------------------------------------------------------------------
High Enriched Uranium Fuel.................................   $3,545,000
Uranium Enrichment.........................................    2,208,000
Low Enriched Uranium.......................................    1,146,000
UF6 Conversion.............................................      509,000
Limited Operations Facility................................      467,000
Others.....................................................      340,000
------------------------------------------------------------------------

    b. Uranium Recovery Facilities. The FY 2001 budgeted cost, 
including surcharge costs, to be recovered through annual fees assessed 
to the uranium recovery class is approximately $1.5 million. Of this 
amount, $654,000 will be assessed to DOE to recover the costs 
associated with DOE sites under the Uranium Mill Tailings Radiation 
Control Act of 1978 (UMTRCA). The remaining $864,000 will be recovered 
through annual fees assessed to conventional mills, solution mining 
uranium mills, and mill tailings disposal facilities. The costs are 
allocated to the individual uranium recovery licensees in these 
categories based on the uranium recovery matrix established in the FY 
1999 final fee rule (64 FR 31448; June 10, 1999).
    The methodology for establishing part 171 annual fees for uranium 
recovery licensees has not changed and is as follows:
    (1) The methodology identifies three categories of licensees: 
conventional uranium mills (Class I facilities), solution mining 
uranium mills (Class II facilities), and mill tailings disposal 
facilities (11e(2) disposal facilities). Each of these categories 
benefits from the generic uranium recovery program efforts (e.g., 
rulemakings, staff guidance documents, etc.);
    (2) The matrix relates the category and the level of benefit by 
program element and subelement;
    (3) The two major program elements of the generic uranium recovery 
program are activities related to facility operations and those related 
to facility closure;
    (4) Each of the major program elements was further divided into 
three subelements;
    (5) The three major subelements of generic activities associated 
with uranium facility operations are regulatory efforts related to the 
operation of mills, handling and disposal of waste, and prevention of 
groundwater contamination. The three major subelements of generic 
activities associated with uranium facility closure are regulatory 
efforts related to decommissioning of facilities and land clean-up, 
reclamation and closure of tailings impoundments, and groundwater 
clean-up. Weighted values were assigned to each program element and 
subelement considering health and safety implications and the 
associated effort to regulate these activities. The applicability of 
the generic program in each subelement to each uranium recovery 
category was qualitatively

[[Page 32466]]

estimated as either significant, some, minor, or none.
    The relative weighted factors per facility type for the various 
subclasses of uranium recovery licensees are as follows.

                           Table VIII.--Weighted Factors for Uranium Recovery Licenses
----------------------------------------------------------------------------------------------------------------
                                                                               Level of benefit
                                                            ----------------------------------------------------
                       Facility type                                                          Total weight
                                                               Number of     Category  -------------------------
                                                              facilities      weight       Value       Percent
----------------------------------------------------------------------------------------------------------------
Class I (conventional mills)...............................           3            770         2310           33
Class II (in-situ mills)...................................       \1\ 6.5          645         4193           59
11e(2) disposal............................................           1            475          475            7
11e(2) disposal incident to existing tailings sites........           1             75           75           1
----------------------------------------------------------------------------------------------------------------
\1\The FY 2001 annual fee will be prorated 50 percent for Cogema Mining's License SUA-1341 based on its November
  10, 2000, request that the license be amended for possession only.

    Applying these factors to the $864,000 in budgeted costs to be 
recovered results in the following annual fees:

          Table IX.--Annual Fees for Uranium Recovery Licenses
------------------------------------------------------------------------
                                                               FY 2001
                       Facility type                          annual fee
------------------------------------------------------------------------
Class I (conventional mills)...............................      $94,300
Class II (in-situ mills)...................................       79,000
11e(2) disposal............................................       58,200
11e(2) disposal incidental to existing tailings sites......        9,200
------------------------------------------------------------------------

    The FY 2001 annual fees for Class I and Class II facilities 
(conventional mills and in-situ mills), are below the $100,000 
threshold currently established in Sec. 171.19 for quarterly billing. 
Therefore, under the current requirements these licensees would be 
subject to annual fee billing based on the anniversary date of their 
license for FY 2001. In FY 1999 the reverse situation occurred for 
these licensees; i.e., in FY 1998 the annual fees were below the 
$100,000 quarterly billing threshold and the licensees were billed on 
the license anniversary date, but beginning in FY 1999 the licensees 
became subject to quarterly billing for the annual fees because the 
fees were over the $100,000 threshold. Because the annual fees for 
these licensees have been close to the $100,000 threshold, small 
changes to the annual fee amounts have resulted in frequent changes to 
their annual fee billing schedule. To provide stability in the billing 
schedule, the NRC is revising Sec. 171.19 to establish a quarterly 
billing schedule for the Class I and Class II licensees, regardless of 
the annual fee amount. This will provide these licensees with a 
consistent, predictable schedule for paying their annual fees. As 
provided in Sec. 171.19(b), if the amounts collected in the first three 
quarters of FY 2001 exceed the amount of the revised annual fee, the 
overpayment will be refunded.
    c. Power Reactors. The approximately $258.7 million in budgeted 
costs to be recovered through FY 2001 annual fees assessed to operating 
power reactors are allocated uniformly to the 104 operating power 
reactors. This results in a FY 2001 annual fee of $2,487,000 per 
reactor. Additionally, each operating reactor will be assessed the 
spent fuel storage/reactor decommissioning annual fee, which for FY 
2001 is $266,000. This results in a total FY 2001 combined annual fee 
of $2,753,000 for each operating power reactor.
    d. Spent Fuel Storage/Reactor Decommissioning. For FY 2001, 
budgeted costs of approximately $32.2 million for spent fuel storage/
reactor decommissioning are to be recovered through annual fees 
assessed to Part 50 power reactors, except those reactors in 
decommissioning which do not have spent fuel on site, and to part 72 
licensees who do not hold a part 50 license. The costs are divided 
equally among the 121 licensees, resulting in an FY 2001 annual fee of 
$266,000 per licensee.
    e. Non-power Reactors. Approximately $296,000 in budgeted costs is 
to be recovered through annual fees assessed to the non-power reactor 
class of licensees for FY 2001. This amount is divided equally among 
the four non-power reactors subject to annual fees. This results in an 
FY 2001 annual fee of $74,000 for each licensee.
    f. Rare Earth Facilities. The FY 2001 budgeted costs of 
approximately $89,600 for rare earth facilities to be recovered through 
annual fees is divided equally among the three licensees who have a 
specific license for receipt and processing of source material. The 
result is an FY 2001 annual fee of $29,900 for each rare earth 
facility.
    g. Materials Users. To equitably and fairly allocate the $23.1 
million in FY 2001 budgeted costs to be recovered in annual fees 
assessed to the approximately 5000 diverse materials users and 
registrants, the NRC has continued to use the FY 1999 methodology to 
establish baseline annual fees for this class. The annual fees are 
based on the part 170 application fees and an estimated cost for 
inspections. Because the application fees and inspection costs are 
indicative of the complexity of the license, this approach continues to 
provide a proxy for allocating the generic and other regulatory costs 
to the diverse categories of licensees based on how much it costs the 
NRC to regulate each category. The fee calculation also continues to 
consider the inspection frequency (priority), which is indicative of 
the safety risk and resulting regulatory costs associated with the 
categories of licensees. The annual fee for these categories of 
licensees is developed as follows.

Annual fee = Constant  x  [Application Fee + (Average Inspection Cost 
divided by Inspection Priority)] + Inspection Multiplier  x  (Average 
Inspection Cost divided by Inspection Priority) + Unique Category Costs

    The constant is the multiple necessary to recover approximately 
$15.1 million in general costs and is 0.96 for FY 2001. The inspection 
multiplier is the multiple necessary to recover approximately $5.7 
million in inspection costs for FY 2001, and is 1.2 for FY 2001. The 
unique category costs are any special costs that the NRC has budgeted 
for a specific category of licensees. For FY 2001, unique costs of 
approximately $143,000 were identified for the medical development 
program, an amount attributable to medical licensees.
    The annual fee assessed to each licensee also includes a share of 
the $1.8 million in surcharge costs allocated to the materials user 
class of licensees and, for certain categories of these licenses, a 
share of the approximately $300,000 in LLW surcharge costs allocated to 
the

[[Page 32467]]

class. The annual fee for each fee category is shown in Sec. 171.16(d).
    h. Transportation. Of the approximately $3.9 million in FY 2001 
budgeted costs to be recovered through annual fees assessed to the 
transportation class of licensees, approximately $1.1 million will be 
recovered from annual fees assessed to DOE based on the number of part 
71 Certificates of Compliance that it holds. Of the remaining $2.8 
million, approximately 26 percent is allocated to the 83 quality 
assurance plans authorizing use only and the 36 quality assurance plans 
authorizing use and design/fabrication. The remaining 74 percent is 
allocated only to the 36 quality assurance plans authorizing use and 
design/fabrication. This results in an FY 2001 annual fee of $6,100 for 
each of the holders of quality assurance plans that authorize use only, 
and an FY 2001 annual fee of $62,500 for each of the holders of quality 
assurance plans that authorize use and design/fabrication.
2. Small Entity Annual Fees
    In the FY 2000 fee rule (65 FR 36946; June 12, 2000), the NRC 
stated that it would re-examine small entity fees each year that annual 
fees are rebaselined. Accordingly, the NRC has re-examined the small 
entity fees and does not believe that a change to the small entity fees 
is warranted for FY 2001. In FY 2000, the NRC revised the small entity 
fees for the first time since they were introduced in FY 1991 and FY 
1992. The revision in FY 2000 was based on the 25 percent increase in 
average total fees assessed to other materials licensees since the 
small entity fees were first established and on changes that had 
occurred in the fee structure for materials licensees over time (65 FR 
36956, 36957). The NRC does not consider the approximately 13 percent 
decrease in the average FY 2001 fees for other materials licensees to 
be significant enough to warrant another change to the small entity 
fees this year.
    Unlike the annual fees assessed to other licensees, the small 
entity fees are not designed to recover the agency costs associated 
with particular licensees. Rather, they are designed to provide some 
fee relief for qualifying small entity licensees while at the same time 
recovering from those licensees some of the NRC's costs for activities 
that benefit them. The costs not recovered from small entities must be 
recovered from other licensees. The current small entity fees of $500 
and $2,300 provide considerable relief to many small entities.
    In the future the NRC plans to re-examine small entity fees every 
two years, in the same years in which it conducts the biennial review 
of fees as required by the CFO Act, instead of each year that annual 
fees are rebaselined as indicated in the FY 2000 fee rule. The annual 
fees for materials users now include the cost of amendments, renewals, 
and inspections. However, at a maximum, annual fees are rebaselined 
every three years, but may be rebaselined earlier if warranted. 
Therefore, reviewing the small entity fees only when the annual fees 
are rebaselined results in a variable schedule for the re-examinations 
and any potential changes to the fees. Re-examining the small entity 
annual fees every two years, on the same schedule as the biennial 
review under the CFO Act, provides a routine, predictable schedule and 
allows licensees to anticipate when potential changes to these fees 
might occur.
3. Other Amendments
    The NRC currently sends an NRC Form 526, ``Certification of Small 
Entity Status for the Purposes of Annual Fees Imposed Under 10 CFR part 
171,'' with each annual fee invoice issued to materials licensees. 
Although the instructions on the form state that it is to be filed only 
by those licensees who qualify as a small entity under NRC's size 
standards, the NRC has received many improperly filed forms. When 
contacted, many of these licensees have indicated they completed the 
form because it was enclosed with the annual fee invoice. In an effort 
to minimize the number of improperly filed forms, the NRC will phase 
out mailing the form with each annual fee invoice. Instead, licensees 
will be able to access NRC Form 526 on the NRC's external web site at 
http://www.nrc.gov. Those licensees that qualify as a ``small entity'' 
under the NRC size standards at 10 CFR Part 2.810 will be able to 
complete the form in accordance with the instructions provided and 
submit the completed form and the appropriate payment to the address 
provided on the invoice. For licensees who cannot access the NRC's 
external web site, NRC Form 526 can be obtained either through the 
local point of contact listed in the NRC's ``Materials Annual Fee 
Billing Handbook,'' NUREG/BR-0238, which is enclosed with each annual 
fee invoice, by calling the NRC's fee staff at 301-415-7554, or by e-
mailing the fee staff at [email protected].
    In summary, the NRC has--
    1. Established new rebaselined annual fees for FY 2001;
    2. Revised Sec. 171.16(c)(2) to delete the sentence indicating that 
NRC will mail NRC Form 526 with each annual fee invoice.
    3. Revised Sec. 171.19 to establish a quarterly annual fee billing 
schedule for Class I and Class II uranium recovery licensees; and
    4. Determined that the small entity fees will be re-examined every 
two years, on the same schedule as the biennial review of fees required 
by the CFO's Act.

IV. Voluntary Consensus Standards

    The National Technology Transfer and Advancement Act of 1995, Pub. 
L. 104-113, requires that Federal agencies use technical standards that 
are developed or adopted by voluntary consensus standards bodies unless 
using such a standard is inconsistent with applicable law or is 
otherwise impractical. In this final rule, the NRC is amending the 
licensing, inspection, and annual fees charged to its licensees and 
applicants as necessary to recover approximately 98 percent of its 
budget authority in FY 2001 as is required by the Omnibus Budget 
Reconciliation Act of 1990, as amended. This action does not constitute 
the establishment of a standard that contains generally applicable 
requirements.

V. Environmental Impact: Categorical Exclusion

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

VI. Paperwork Reduction Act Statement

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

VII. Regulatory Analysis

    With respect to 10 CFR part 170, this final rule was developed 
pursuant to Title V of the Independent Offices Appropriation Act of 
1952 (IOAA) (31 U.S.C. 9701) and the Commission's fee guidelines. When 
developing these guidelines the Commission took into account guidance 
provided by the U.S. Supreme Court on March 4, 1974, in National Cable 
Television Association,

[[Page 32468]]

Inc. v. United States, 415 U.S. 36 (1974) and Federal Power Commission 
v. New England Power Company, 415 U.S. 345 (1974). In these decisions, 
the Court held that the IOAA authorizes an agency to charge fees for 
special benefits rendered to identifiable persons measured by the 
``value to the recipient'' of the agency service. The meaning of the 
IOAA was further clarified on December 16, 1976, by four decisions of 
the U.S. Court of Appeals for the District of Columbia: National Cable 
Television Association v. Federal Communications Commission, 554 F.2d 
1094 (D.C. Cir. 1976); National Association of Broadcasters v. Federal 
Communications Commission, 554 F.2d 1118 (D.C. Cir. 1976); Electronic 
Industries Association v. Federal Communications Commission, 554 F.2d 
1109 (D.C. Cir. 1976); and Capital Cities Communication, Inc. v. 
Federal Communications Commission, 554 F.2d 1135 (D.C. Cir. 1976). The 
Commission's fee guidelines were developed based on these legal 
decisions.
    The Commission's fee guidelines were upheld on August 24, 1979, by 
the U.S. Court of Appeals for the Fifth Circuit in Mississippi Power 
and Light Co. v. U.S. Nuclear Regulatory Commission, 601 F.2d 223 (5th 
Cir. 1979), cert. denied, 444 U.S. 1102 (1980). This court held that--
    (1) The NRC had the authority to recover the full cost of providing 
services to identifiable beneficiaries;
    (2) The NRC could properly assess a fee for the costs of providing 
routine inspections necessary to ensure a licensee's compliance with 
the Atomic Energy Act and with applicable regulations;
    (3) The NRC could charge for costs incurred in conducting 
environmental reviews required by NEPA;
    (4) The NRC properly included the costs of uncontested hearings and 
of administrative and technical support services in the fee schedule;
    (5) The NRC could assess a fee for renewing a license to operate a 
low-level radioactive waste burial site; and
    (6) The NRC's fees were not arbitrary or capricious.
    With respect to 10 CFR part 171, on November 5, 1990, the Congress 
passed Pub. L. 101-508, the Omnibus Budget Reconciliation Act of 1990 
(OBRA-90), which required that, for FYs 1991 through 1995, 
approximately 100 percent of the NRC budget authority be recovered 
through the assessment of fees. OBRA-90 was subsequently amended to 
extend the 100 percent fee recovery requirement through FY 2000. The FY 
2001 Energy and Water Development Appropriations Act amended OBRA-90 to 
decrease the NRC's fee recovery amount from 100 percent to 98 percent 
of the NRC's budget authority for FY 2001. To comply with this 
statutory requirement, and in accordance with Sec. 171.13, the NRC is 
publishing the amount of the FY 2001 annual fees for reactor licensees, 
fuel cycle licensees, materials licensees, and holders of Certificates 
of Compliance, registrations of sealed source and devices and QA 
program approvals, and Government agencies. OBRA-90, consistent with 
the accompanying Conference Committee Report, and the amendments to 
OBRA-90, provides that--
    (1) The annual fees be based on approximately 98 percent of the 
Commission's FY 2001 budget of $487.4 million less the amounts 
collected from part 170 fees and funds directly appropriated from the 
NWF to cover the NRC's high level waste program;
    (2) The annual fees shall, to the maximum extent practicable, have 
a reasonable relationship to the cost of regulatory services provided 
by the Commission; and
    (3) The annual fees be assessed to those licensees the Commission, 
in its discretion, determines can fairly, equitably, and practicably 
contribute to their payment.
    In addition, the NRC's FY 2001 appropriations language provides 
that $3.2 million appropriated from the General Fund for activities 
related to regulatory reviews and other assistance provided to the 
other Federal agencies and States be excluded from fee recovery.
    10 CFR part 171, which established annual fees for operating power 
reactors effective October 20, 1986 (51 FR 33224; September 18, 1986), 
was challenged and upheld in its entirety in Florida Power and Light 
Company v. United States, 846 F.2d 765 (D.C. Cir. 1988), cert. denied, 
490 U.S. 1045 (1989). Further, the NRC's FY 1991 annual fee rule 
methodology was upheld by the D.C. Circuit Court of Appeals in Allied 
Signal v. NRC, 988 F.2d 146 (D.C. Cir. 1993).

VIII. Regulatory Flexibility Analysis

    The NRC is required by the Omnibus Budget Reconciliation Act of 
1990, as amended, to recover approximately 98 percent of its FY 2001 
budget authority through the assessment of user fees. This act further 
requires that the NRC establish a schedule of charges that fairly and 
equitably allocates the aggregate amount of these charges among 
licensees.
    This final rule establishes the schedules of fees that are 
necessary to implement the Congressional mandate for FY 2001. The final 
rule will result in increases in the annual fees charged to certain 
licensees and holders of certificates, registrations, and approvals, 
and decreases in annual fees for others, including those that qualify 
as a small entity under NRC's size standards in 10 CFR 2.810. The 
Regulatory Flexibility Analysis, prepared in accordance with 5 U.S.C. 
604, is included as Appendix A to this final rule.
    The Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA) was signed into law on March 29, 1996. The SBREFA requires all 
Federal agencies to prepare a written compliance guide for each rule 
for which the agency is required by 5 U.S.C. 604 to prepare a 
regulatory flexibility analysis. Therefore, in compliance with the law, 
Attachment 1 to the Regulatory Flexibility Analysis is the small entity 
compliance guide for FY 2001.

IX. Backfit Analysis

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

X. Small Business Regulatory Enforcement Fairness Act

    In accordance with the Small Business Regulatory Enforcement 
Fairness Act of 1996, Pub. L. 104-121, the NRC has determined that this 
action is a major rule and has verified the determination with the 
Office of Information and Regulatory Affairs of the Office of 
Management and Budget.

List of Subjects

10 CFR Part 150

    Criminal penalties, Hazardous materials transportation, 
Intergovernmental relations, Nuclear materials, Reporting and 
recordkeeping requirements, Security measures, Source material, Special 
nuclear material.

10 CFR Part 170

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

[[Page 32469]]

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 
adopting the following amendments to 10 CFR Parts 150, 170 and 171.

PART 150--EXEMPTIONS AND CONTINUED REGULATORY AUTHORITY IN 
AGREEMENT STATES AND IN OFFSHORE WATERS UNDER SECTION 274

    1. The authority citation for Part 150 continues to read as 
follows:

    Authority: Sec. 161, 68 Stat. 948, as amended, sec. 274, 73 
Stat. 688 (42 U.S.C. 2201, 2021); sec. 201, 88 Stat. 1242, as 
amended (42 U.S.C. 5841).
    Sections 150.3, 150.15, 150.15a, 150.31, 150.32 also issued 
under secs. 11e(2), 81, 68, Stat. 923, 935, as amended, secs. 83, 
84, 92 Stat. 3033, 3039 (42 U.S.C. 2014e(2), 2111, 2113, 2114). 
Section 150.14 also issued under sec. 53, 68 Stat. 930, as amended 
(42 U.S.C. 2073). Section 150.15 also issued under secs. 135, 141, 
Pub. L. 97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161). 
Section 150.17a also issued under sec. 122, 68 Stat. 939 (42 U.S.C. 
2152). Section 150.30 also issued under sec. 234, 83 Stat. 444 (42 
U.S.C. 2282).


    2. In Sec. 150.20, paragraph (b)(2) is revised to read as follows:


Sec. 150.20  Recognition of Agreement State licenses.

* * * * *
    (b) * * *
    (2) Shall file an amended NRC Form 241 or letter with the Regional 
Administrator to request approval for changes in work locations, 
radioactive material, or work activities different from the information 
contained on the initial NRC Form 241.
* * * * *

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

    3. The authority citation for Part 170 is revised to read as 
follows:

    Authority: sec. 9701, Pub. L. 97-258, 96 Stat. 1051 (31 U.S.C. 
9701); sec. 301, Pub. L. 92-314, 86 Stat. 227 (42 U.S.C. 2201w); 
sec. 201, Pub. L. 93-438, 88 Stat. 1242, as amended (42 U.S.C. 
5841); sec. 205a, Pub. L. 101-576, 104 Stat. 2842, as amended (31 
U.S.C. 901, 902).

    4. Section 170.2 is amended by adding paragraph (s) to read as 
follows:


Sec. 170.2  Scope.

* * * * *
    (s) A holder of a general license granted by 10 CFR Part 31 who is 
required to register a device(s).

    5. Section 170.3 is amended by revising the definitions of 
Materials License and Special Projects to read as follows:


Sec. 170.3  Definitions.

* * * * *
    Materials License means a license, certificate, approval, 
registration, or other form of permission issued or granted by the NRC 
under the regulations in 10 CFR Parts 30, 31 through 36, 39, 40, 61, 
70, 72, and 76.
* * * * *
    Special Projects means those requests submitted to the Commission 
for review for which fees are not otherwise specified in this chapter. 
Examples of special projects include, but are not limited to, topical 
report reviews, early site reviews, waste solidification facilities, 
route approvals for shipment of radioactive materials, services 
provided to certify licensee, vendor, or other private industry 
personnel as instructors for Part 55 reactor operators, reviews of 
financial assurance submittals that do not require a license amendment, 
reviews of responses to Confirmatory Action Letters, reviews of uranium 
recovery licensees' land-use survey reports, and reviews of 10 CFR 
50.71 final safety analysis reports. As used in this part, special 
projects does not include requests/reports submitted to the NRC--
    (1) In response to a Generic Letter or NRC Bulletin that does not 
result in an amendment to the license, does not result in the review of 
an alternate method or reanalysis to meet the requirements of the 
Generic Letter, or does not involve an unreviewed safety issue;
    (2) In response to an NRC request (at the Associate Office Director 
level or above) to resolve an identified safety, safeguards, or 
environmental issue, or to assist the NRC in developing a rule, 
regulatory guide, policy statement, generic letter, or bulletin; or
    (3) As a means of exchanging information between industry 
organizations and the NRC for the purpose of supporting the NRC's 
generic regulatory improvements or efforts.
* * * * *

    6. In Sec. 170.12, paragraph (a) is revised to read as follows:


Sec. 170.12  Payment of Fees.

    (a) Application and registration fees. Each application or 
registration for which a fee is prescribed must be accompanied by a 
remittance for the full amount of the fee. The NRC will not issue a new 
license or an amendment increasing the scope of an existing license to 
a higher fee category before receiving the prescribed application fee. 
The application or registration fee(s) is charged whether the 
Commission approves the application or not. The application or 
registration fee(s) is also charged if the applicant withdraws the 
application or registration.
* * * * *

    7. Section 170.20 is revised to read as follows:


Sec. 170.20  Average cost per professional staff-hour.

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

Reactor Program (Sec. 170.21 Activities): $150 per hour
Nuclear Materials and Nuclear Waste Program (Sec. 170.31 
Activities): $144 per hour


    8. In Sec. 170.21, the introductory text, Category K, and footnotes 
1, 2, 3, and 4 to the table are revised to read as follows:


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

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

[[Page 32470]]



                        Schedule of Facility Fees
                     [See footnotes at end of table]
------------------------------------------------------------------------
            Facility categories and type of fees               Fees 1,2
------------------------------------------------------------------------
 
*                  *                  *                  *
                  *                  *                  *
               K. Import and export licenses
Licenses for the import and export only of production and
 utilization facilities or the export only of components
 for production and utilization facilities issued under 10
 CFR Part 110:
    1. Application for import or export of reactors and
     other facilities and exports of components which must
     be reviewed by the Commissioners and the Executive
     Branch, for example, actions under 10 CFR 110.40(b):
        Application-new license............................       $9,400
        Amendment..........................................       $9,400
    2. Application for export of reactor and other
     components requiring Executive Branch review only, for
     example, those actions under 10 CFR 110.41(a)(1)-(8):
        Application-new license............................       $5,500
        Amendment..........................................       $5,500
    3. Application for export of components requiring
     foreign government assurances only:
        Application-new license............................       $1,700
        Amendment..........................................       $1,700
    4. Application for export of facility components and
     equipment not requiring Commissioner review, Executive
     Branch review, or foreign government assurances:
        Application-new license............................       $1,200
        Amendment..........................................       $1,200
    5. Minor amendment of any export or import license to
     extend the expiration date, change domestic
     information, or make other revisions which do not
     require in-depth analysis or review:
        Amendment..........................................        $220
------------------------------------------------------------------------
\1\ Fees will not be charged for orders issued by the Commission under
  Sec.  2.202 of this chapter or for amendments resulting specifically
  from the requirements of these types of Commission orders. Fees will
  be charged for approvals issued under a specific exemption provision
  of the Commission's regulations under Title 10 of the Code of Federal
  Regulations (e.g., Secs.  50.12, 73.5) and any other sections in
  effect now or in the future, regardless of whether the approval is in
  the form of a license amendment, letter of approval, safety evaluation
  report, or other form. Fees for licenses in this schedule that are
  initially issued for less than full power are based on review through
  the issuance of a full power license (generally full power is
  considered 100 percent of the facility's full rated power). Thus, if a
  licensee received a low power license or a temporary license for less
  than full power and subsequently receives full power authority (by way
  of license amendment or otherwise), the total costs for the license
  will be determined through that period when authority is granted for
  full power operation. If a situation arises in which the Commission
  determines that full operating power for a particular facility should
  be less than 100 percent of full rated power, the total costs for the
  license will be at that determined lower operating power level and not
  at the 100 percent capacity.
\2\ Full cost fees will be determined based on the professional staff
  time and appropriate contractual support services expended. For
  applications currently on file and for which fees are determined based
  on the full cost expended for the review, the professional staff hours
  expended for the review of the application up to the effective date of
  the final rule will be determined at the professional rates in effect
  at the time the service was provided. For those applications currently
  on file for which review costs have reached an applicable fee ceiling
  established by the final rule effective June 20, 1984 (and contained
  in the 10 CFR, parts 0 to 199, edition revised as of January 1, 1985)
  and the final rule effective July 2, 1990 (and contained in the 10
  CFR, parts 51 to 199, edition revised as of January 1, 1991), but are
  still pending completion of the review, the cost incurred after any
  applicable ceiling was reached through January 29, 1989, will not be
  billed to the applicant. Any professional staff-hours expended above
  those ceilings on or after January 30, 1989, will be assessed at the
  applicable rates established by Sec.  170.20, as appropriate, except
  for topical reports whose costs exceed $50,000. Costs which exceed
  $50,000 for any topical report, amendment, revision or supplement to a
  topical report completed or under review from January 30, 1989,
  through August 8, 1991, will not be billed to the applicant. Any
  professional hours expended on or after August 9, 1991, will be
  assessed at the applicable rate established in Sec.  170.20.
\3\ Inspections covered by this schedule are both routine and non-
  routine safety and safeguards inspections performed by NRC for the
  purpose of review or follow-up of a licensed program. Inspections are
  performed through the full term of the license to ensure that the
  authorized activities are being conducted in accordance with the
  Atomic Energy Act of 1954, as amended, other legislation, Commission
  regulations or orders, and the terms and conditions of the license.
  Non-routine inspections that result from third-party allegations will
  not be subject to fees.
\4\ Fees will not be assessed for requests/reports submitted to the NRC--
 

    (a) In response to a Generic Letter or NRC Bulletin that does not 
result in an amendment to the license, does not result in the review of 
an alternate method or reanalysis to meet the requirements of the 
Generic Letter, or does not involve an unreviewed safety issue;
    (b) In response to an NRC request (at the Associate Office Director 
level or above) to resolve an identified safety, safeguards, or 
environmental issue, or to assist NRC in developing a rule, regulatory 
guide, policy statement, generic letter, or bulletin; or
    (c) As a means of exchanging information between industry 
organizations and the NRC for the purpose of supporting NRC's generic 
regulatory improvements or efforts.
    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.

[[Page 32471]]



                       Schedule of Materials Fees
------------------------------------------------------------------------
    Category of materials licenses and type of fees \1\        Fees \2\
-----------------------------------------------------------------\3\----
1. Special nuclear material:
    A. Licenses for possession and use of 200 grams or more    Full Cost
     of plutonium in unsealed form or 350 grams or more of
     contained U-235 in unsealed form or 200 grams or more
     of U-233 in unsealed form. This includes applications
     to terminate licenses as well as licenses authorizing
     possession only: Licensing and Inspection.............
    B. Licenses for receipt and storage of spent fuel at an    Full Cost
     independent spent fuel storage installation (ISFSI):
     Licensing and inspection..............................
    C. Licenses for possession and use of special nuclear           $660
     material in sealed sources contained in devices used
     in industrial measuring systems, including x-ray
     fluorescence analyzers: \4\ Application...............
    D. All other special nuclear material licenses, except        $1,300
     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........
    E. Licenses or certificates for construction and           Full Cost
     operation of a uranium enrichment facility: Licensing
     and inspection........................................
2. Source material:
    A.(1) Licenses for possession and use of source            Full Cost
     material in recovery operations such as milling, in-
     situ leaching, heap-leaching, refining uranium mill
     concentrates to uranium hexafluoride, ore buying
     stations, and ion exchange facilities, and in
     processing of ores containing source material for
     extraction of metals other than uranium or thorium,
     including licenses authorizing the possession of
     byproduct waste material (tailings) from source
     material recovery operations, as well as licenses
     authorizing the possession and maintenance of a
     facility in a standby mode: Licensing and inspection..
    (2) Licenses that authorize the receipt of byproduct       Full Cost
     material, as defined in section 11e(2) of the Atomic
     Energy Act, from other persons for possession and
     disposal except those licenses subject to fees in
     Category 2A(1): Licensing and inspection..............
    (3) Licenses that authorize the receipt of byproduct       Full Cost
     material, as defined in section 11e(2) of the Atomic
     Energy Act, from other persons for possession and
     disposal incidental to the disposal of the uranium
     waste tailings generated by the licensee's milling
     operations, except those licenses subject to the fees
     in Category 2A(1): Licensing and inspection...........
    B. Licenses which authorize the possession, use, and/or         $160
     installation of source material for shielding:
     Application...........................................
    C. All other source material licenses: Application.....       $5,700
3. Byproduct material:
    A. Licenses of broad scope for the possession and use         $6,700
     of byproduct material issued under parts 30 and 33 of
     this chapter for processing or manufacturing of items
     containing byproduct material for commercial
     distribution: Application.............................
    B. Other licenses for possession and use of byproduct         $2,200
     material issued under part 30 of this chapter for
     processing or manufacturing of items containing
     byproduct material for commercial distribution:
     Application...........................................
    C. Licenses issued under Secs.  32.72, 32.73, and/or          $8,700
     32.74 of this chapter that authorize the processing or
     manufacturing and distribution or redistribution of
     radiopharmaceuticals, generators, reagent kits, and/or
     sources and devices containing byproduct material.
     This category does not apply to licenses issued to
     nonprofit educational institutions whose processing or
     manufacturing is exempt under 10 CFR 170.11(a)(4).
     These licenses are covered by fee Category 3D:
     Application...........................................
    D. Licenses and approvals issued under Secs.  32.72,          $2,400
     32.73, and/or 32.74 of this chapter authorizing
     distribution or redistribution of
     radiopharmaceuticals, generators, reagent kits, and/or
     sources or devices not involving processing of
     byproduct material. This category includes licenses
     issued under Secs.  32.72, 32.73, and/or 32.74 of this
     chapter to nonprofit educational institutions whose
     processing or manufacturing is exempt under 10 CFR
     170.11(a)(4): Application.............................
    E. Licenses for possession and use of byproduct               $1,700
     material in sealed sources for irradiation of
     materials in which the source is not removed from its
     shield (self-shielded units): Application.............
    F. Licenses for possession and use of less than 10,000        $3,400
     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.....................
    G. Licenses for possession and use of 10,000 curies or        $8,000
     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.....................
    H. Licenses issued under subpart A of part 32 of this         $2,300
     chapter to distribute items containing byproduct
     material that require device review to persons exempt
     from the licensing requirements of part 30 of this
     chapter. The category does not include specific
     licenses authorizing redistribution of items that have
     been authorized for distribution to persons exempt
     from the licensing requirements of part 30 of this
     chapter: Application..................................
    I. Licenses issued under subpart A of part 32 of this         $3,400
     chapter to distribute items containing byproduct
     material or quantities of byproduct material that do
     not require device evaluation to persons exempt from
     the licensing requirements of part 30 of this chapter.
     This category does not include specific licenses
     authorizing redistribution of items that have been
     authorized for distribution to persons exempt from the
     licensing requirements of part 30 of this chapter:
     Application...........................................
    J. Licenses issued under subpart B of part 32 of this         $1,000
     chapter to distribute items containing byproduct
     material that require sealed source and/or device
     review to persons generally licensed under part 31 of
     this chapter. This category does not include specific
     licenses authorizing redistribution of items that have
     been authorized for distribution to persons generally
     licensed under part 31 of this chapter: Application...
    K. Licenses issued under subpart B of part 32 of this           $590
     chapter to distribute items containing byproduct
     material or quantities of byproduct material that do
     not require sealed source and/or device review to
     persons generally licensed under part 31 of this
     chapter. This category does not include specific
     licenses authorizing redistribution of items that have
     been authorized for distribution to persons generally
     licensed under part 31 of this chapter: Application...
    L. Licenses of broad scope for possession and use of          $5,700
     byproduct material issued under parts 30 and 33 of
     this chapter for research and development that do not
     authorize commercial distribution: Application........
    M. Other licenses for possession and use of byproduct         $2,500
     material issued under part 30 of this chapter for
     research and development that do not authorize
     commercial distribution: Application..................
    N. Licenses that authorize services for other                 $2,600
     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...............................

[[Page 32472]]

 
    O. Licenses for possession and use of byproduct               $4,200
     material issued under part 34 of this chapter for
     industrial radiography operations: Application........
    P. All other specific byproduct material licenses,            $1,300
     except those in Categories 4A through 9D: Application.
    Q. Registration of a device(s) generally licensed under         $450
     part 31: Registration.................................
4. Waste disposal and processing:
    A. Licenses specifically authorizing the receipt of        Full Cost
     waste byproduct material, source material, or special
     nuclear material from other persons for the purpose of
     contingency storage or commercial land disposal by the
     licensee; or licenses authorizing contingency storage
     of low-level radioactive waste at the site of nuclear
     power reactors; or licenses for receipt of waste from
     other persons for incineration or other treatment,
     packaging of resulting waste and residues, and
     transfer of packages to another person authorized to
     receive or dispose of waste material: Licensing and
     inspection............................................
    B. Licenses specifically authorizing the receipt of           $1,700
     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.................................
    C. Licenses specifically authorizing the receipt of           $2,600
     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.................................
5. Well logging:
    A. Licenses for possession and use of byproduct               $5,600
     material, source material, and/or special nuclear
     material for well logging, well surveys, and tracer
     studies other than field flooding tracer studies:
     Application...........................................
    B. Licenses for possession and use of byproduct            Full Cost
     material for field flooding tracer studies: Licensing.
6. Nuclear laundries:
    A. Licenses for commercial collection and laundry of         $11,500
     items contaminated with byproduct material, source
     material, or special nuclear material: Application....
7. Medical licenses:
    A. Licenses issued under parts 30, 35, 40, and 70 of          $6,300
     this chapter for human use of byproduct material,
     source material, or special nuclear material in sealed
     sources contained in teletherapy devices: Application.
    B. Licenses of broad scope issued to medical                  $4,500
     institutions or two or more physicians under parts 30,
     33, 35, 40, and 70 of this chapter authorizing
     research and development, including human use of
     byproduct material, except licenses for byproduct
     material, source material, or special nuclear material
     in sealed sources contained in teletherapy devices:
     Application...........................................
    C. Other licenses issued under parts 30, 35, 40, and 70       $2,200
     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.
8. Civil defense:
    A. Licenses for possession and use of byproduct                 $330
     material, source material, or special nuclear material
     for civil defense activities: Application.............
9. Device, product, or sealed source safety evaluation:
    A. Safety evaluation of devices or products containing        $5,400
     byproduct material, source material, or special
     nuclear material, except reactor fuel devices, for
     commercial distribution: Application--each device.....
    B. Safety evaluation of devices or products containing        $5,400
     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...........................................
    C. Safety evaluation of sealed sources containing             $1,600
     byproduct material, source material, or special
     nuclear material, except reactor fuel, for commercial
     distribution: Application--each source................
    D. Safety evaluation of sealed sources containing               $550
     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................................................
10. Transportation of radioactive material:
    A. Evaluation of casks, packages, and shipping             Full Cost
     containers: Licensing and inspections.................
    B. Evaluation of 10 CFR part 71 quality assurance
     programs:
        Application........................................         $650
        Inspections........................................    Full Cost
11. Review of standardized spent fuel facilities: Licensing    Full Cost
 and inspection............................................
12. Special projects:\5\
    Approvals and preapplication/..........................
    Licensing activities...................................    Full Cost
    Inspections............................................    Full Cost
13. A. Spent fuel storage cask Certificate of Compliance:      Full Cost
 Licensing.................................................
    B. Inspections related to spent fuel storage cask          Full Cost
 Certificate of Compliance.................................
    C. Inspections related to storage of spent fuel under      Full Cost
 Sec.  72.210 of this chapter..............................
14. Byproduct, source, or special nuclear material licenses    Full Cost
 and other approvals authorizing decommissioning,
 decontamination, reclamation, or site restoration
 activities under parts 30, 40, 70, 72, and 76 of this
 chapter: Licensing and inspection.........................
15. Import and Export licenses: Licenses issued under 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...........................       $9,400
        Amendment..........................................       $9,400

[[Page 32473]]

 
    B. Application for export or import of special nuclear
     material, source material, tritium and other byproduct
     material, heavy water, or nuclear grade graphite,
     including radioactive waste, requiring Executive
     Branch review but not Commissioner review. This
     category includes application for the export or import
     of radioactive waste involving a single form of waste
     from a single class of generator in the exporting
     country to a single treatment, storage and/or disposal
     facility in the receiving country:
        Application--new license...........................       $5,500
        Amendment..........................................       $5,500
    C. Application for export of routine reloads of low
     enriched uranium reactor fuel and exports of source
     material requiring only foreign government assurances
     under the Atomic Energy Act:
        Application--new license...........................       $1,700
        Amendment..........................................       $1,700
    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           $220
     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.
16. Reciprocity:
    Agreement State licensees who conduct activities under       $1,400
     the reciprocity provisions of 10 CFR 150.20:
     Application...........................................
------------------------------------------------------------------------
\1\ Types of fees--Separate charges, as shown in the schedule, will be
  assessed for pre-application consultations and reviews and
  applications for new licenses and approvals, issuance of new licenses
  and approvals, certain amendments and renewals to existing licenses
  and approvals, safety evaluations of sealed sources and devices, and
  certain inspections. The following guidelines apply to these charges:
(a) Application and registration fees. Applications for new materials
  licenses and export and import licenses; applications to reinstate
  expired, terminated, or inactive licenses except those subject to fees
  assessed at full costs; applications filed by Agreement State
  licensees to register under the general license provisions of 10 CFR
  150.20; and applications for amendments to materials licenses that
  would place the license in a higher fee category or add a new fee
  category must be accompanied by the prescribed application fee for
  each category.
(1) Applications for licenses covering more than one fee category of
  special nuclear material or source material must be accompanied by the
  prescribed application fee for the highest fee category.
(2) Applications for new licenses that cover both byproduct material and
  special nuclear material in sealed sources for use in gauging devices
  will pay the appropriate application fee for fee Category 1C only.
(b) Licensing fees. Fees for reviews of applications for new licenses
  and for renewals and amendments to existing licenses, for pre-
  application consultations and for reviews of other documents submitted
  to NRC for review, and for project manager time for fee categories
  subject to full cost fees (fee Categories 1A, 1B, 1E, 2A, 4A, 5B, 10A,
  11, 12, 13A, and 14) are due upon notification by the Commission in
  accordance with Sec.  170.12(b).
(c) Amendment fees. Applications for amendments to export and import
  licenses must be accompanied by the prescribed amendment fee for each
  license affected. An application for an amendment to a license or
  approval classified in more than one fee category must be accompanied
  by the prescribed amendment fee for the category affected by the
  amendment unless the amendment is applicable to two or more fee
  categories, in which case the amendment fee for the highest fee
  category would apply.
(d) Inspection fees. Inspections resulting from investigations conducted
  by the Office of Investigations and non-routine inspections that
  result from third-party allegations are not subject to fees.
  Inspection fees are due upon notification by the Commission in
  accordance with Sec.  170.12(c).
(e) Generally licensed device registrations under 10 CFR 31.5.
  Submittals of registration information must be accompanied by the
  prescribed fee.
\2\ Fees will not be charged for orders issued by the Commission under
  10 CFR 2.202 or for amendments resulting specifically from the
  requirements of these types of Commission orders. However, fees will
  be charged for approvals issued under a specific exemption provision
  of the Commission's regulations under Title 10 of the Code of Federal
  Regulations (e.g., 10 CFR 30.11, 40.14, 70.14, 73.5, and any other
  sections in effect now or in the future), regardless of whether the
  approval is in the form of a license amendment, letter of approval,
  safety evaluation report, or other form. In addition to the fee shown,
  an applicant may be assessed an additional fee for sealed source and
  device evaluations as shown in Categories 9A through 9D.
\3\ Full cost fees will be determined based on the professional staff
  time multiplied by the appropriate professional hourly rate
  established in Sec.  170.20 in effect at the time the service is
  provided, and the appropriate contractual support services expended.
  For those applications currently on file for which review costs have
  reached an applicable fee ceiling established by the final rule
  effective June 20, 1984 (and contained in the 10 CFR, parts 0 to 199,
  edition revised as of January 1, 1985) and the final rule effective
  July 2, 1990 (and contained in the 10 CFR, parts 51 to 199, edition
  revised as of January 1, 1991), but are still pending completion of
  the review, the cost incurred after any applicable ceiling was reached
  through January 29, 1989, will not be billed to the applicant. Any
  professional staff-hours expended above those ceilings on or after
  January 30, 1989, will be assessed at the applicable rates established
  by Sec.  170.20, as appropriate, except for topical reports whose
  costs exceed $50,000. Costs which exceed $50,000 for each topical
  report, amendment, revision, or supplement to a topical report
  completed or under review from January 30, 1989, through August 8,
  1991, will not be billed to the applicant. Any professional hours
  expended on or after August 9, 1991, will be assessed at the
  applicable rate established in Sec.  170.20.
\4\ Licensees paying fees under Categories 1A, 1B, and 1E are not
  subject to fees under Categories 1C and 1D for sealed sources
  authorized in the same license except for an application that deals
  only with the sealed sources authorized by the license.
\5\ Fees will not be assessed for requests/reports submitted to the NRC--
 
(a) In response to a Generic Letter or NRC Bulletin that does not result
  in an amendment to the license, does not result in the review of an
  alternate method or re-analysis to meet the requirements of the
  Generic Letter, or does not involve an unreviewed safety issue;
(b) In response to an NRC request (at the Associate Office Director
  level or above) to resolve an identified safety, safeguards, or
  environmental issue, or to assist the NRC in developing a rule,
  regulatory guide, policy statement, generic letter, or bulletin; or
(c) As a means of exchanging information between industry organizations
  and the NRC for the purpose of supporting the NRC's generic regulatory
  improvements or efforts.


[[Page 32474]]

    10. Section 170.41 is revised to read as follows:


Sec. 170.41  Failure by applicant or licensee to pay prescribed fees.

    If the Commission determines that an applicant or a licensee has 
failed to pay a prescribed fee required in this part, the Commission 
will not process any application and may suspend or revoke any license 
or approval issued to the applicant or licensee. The Commission may 
issue an order with respect to licensed activities that the Commission 
determines to be appropriate or necessary to carry out the provisions 
of this part, parts 30, 31, 32 through 35, 40, 50, 61, 70, 71, 72, 73, 
and 76 of this chapter, and of the act.

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

    11. The authority citation for Part 171 is revised to read as 
follows:

    Authority: Sec. 7601, Pub. L. 99-272, 100 Stat. 146, as amended 
by sec. 5601, Pub. L. 100-203, 101 Stat. 1330, as amended by sec. 
3201, Pub. L. 101-239, 103 Stat. 2132, as amended by sec. 6101, Pub. 
L. 101-508, 104 Stat. 1388, as amended by sec. 2903a, Pub. L. 102-
486, 106 Stat. 3125 (42 U.S.C. 2213, 2214); sec. 301, Pub. L. 92-
314, 86 Stat. 227 (42 U.S.C. 2201w); sec. 201, Pub. L. 93-438, 88 
Stat. 1242, as amended (42 U.S.C. 5841).

    12. In Sec. 171.5, the definition of Materials License is revised 
to read as follows:


Sec. 171.5  Definitions.

* * * * *
    Materials License means a license, certificate, approval, 
registration or other form of permission issued or granted by the NRC 
under the regulations in 10 CFR parts 30, 31 through 36, 39, 40, 61, 
70, 71, 72, and 76.
* * * * *

    13. In Sec. 171.15, paragraphs (b), (c), (d), and (e) are revised 
to read as follows:


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

* * * * *
    (b)(1) The FY 2001 annual fee for each operating power reactor 
which must be collected by September 30, 2001, is $2,753,000.
    (2) The FY 2001 annual fee is comprised of a base operating power 
reactor annual fee, a base spent fuel storage/reactor decommissioning 
annual fee, and associated additional charges (surcharges). The 
activities comprising the FY 2001 spent storage/reactor decommissioning 
base annual fee are shown in paragraph (c)(2)(i) and (ii) of this 
section. The activities comprising the FY 2001 surcharge are shown in 
paragraph (d)(1) of this section. The activities comprising the FY 2001 
base annual fee for operating power reactors are as follows:
    (i) Power reactor safety and safeguards regulation except licensing 
and inspection activities recovered under part 170 of this chapter and 
generic reactor decommissioning activities.
    (ii) Research activities directly related to the regulation of 
power reactors, except those activities specifically related to reactor 
decommissioning.
    (iii) Generic activities required largely for NRC to regulate power 
reactors, e.g., updating part 50 of this chapter, or operating the 
Incident Response Center. The base annual fee for operating power 
reactors does not include generic activities specifically related to 
reactor decommissioning.
    (c)(1) The FY 2001 annual fee for each power reactor holding a part 
50 license that is in a decommissioning or possession only status and 
has spent fuel on-site and each independent spent fuel storage part 72 
licensee who does not hold a part 50 license is $266,000.
    (2) The FY 2001 annual fee is comprised of a base spent fuel 
storage/reactor decommissioning annual fee (which is also included in 
the operating power reactor annual fee shown in paragraph (b) of this 
section), and an additional charge (surcharge). The activities 
comprising the FY 2001 surcharge are shown in paragraph (d)(1) of this 
section. The activities comprising the FY 2001 spent fuel storage/
reactor decommissioning rebaselined annual fee are--
    (i) Generic and other research activities directly related to 
reactor decommissioning and spent fuel storage; and
    (ii) Other safety, environmental, and safeguards activities related 
to reactor decommissioning and spent fuel storage, except costs for 
licensing and inspection activities that are recovered under part 170 
of this chapter.
    (d)(1) The activities comprising the FY 2001 surcharge are as 
follows:
    (i) Low level waste disposal generic activities;
    (ii) Activities not attributable to an existing NRC licensee or 
class of licensees (e.g., international cooperative safety program and 
international safeguards activities, support for the Agreement State 
program, and site decommissioning management plan (SDMP) activities); 
and
    (iii) Activities not currently subject to 10 CFR part 170 licensing 
and inspection fees based on existing law or Commission policy (e.g., 
reviews and inspections of nonprofit educational institutions, 
licensing actions for Federal agencies, and costs that would not be 
collected from small entities based on Commission policy in accordance 
with the Regulatory Flexibility Act).
    (2) The total FY 2001 surcharge allocated to the operating power 
reactor class of licensees is $38.2 million, not including the amount 
allocated to the spent fuel storage/reactor decommissioning class. The 
FY 2001 operating power reactor surcharge to be assessed to each 
operating power reactor is approximately $367,000. This amount is 
calculated by dividing the total operating power reactor surcharge 
($38.2 million) by the number of operating power reactors (104).
    (3) The FY 2001 surcharge allocated to the spent fuel storage/
reactor decommissioning class of licensees is $4.3 million. The FY 2001 
spent fuel storage/reactor decommissioning surcharge to be assessed to 
each operating power reactor, each power reactor in decommissioning or 
possession only status that has spent fuel onsite, and to each 
independent spent fuel storage part 72 licensee who does not hold a 
part 50 license is approximately $35,600. This amount is calculated by 
dividing the total surcharge costs allocated to this class by the total 
number of power reactor licenses, except those that permanently ceased 
operations and have no fuel on site, and part 72 licensees who do not 
hold a part 50 license.
    (e) The FY 2001 annual fees for licensees authorized to operate a 
non-power (test and research) reactor licensed under part 50 of this 
chapter, unless the reactor is exempted from fees under Sec. 171.11(a), 
are as follows:

Research reactor: $74,000
Test reactor: $74,000


    14. In Sec. 171.16, paragraphs (c), (d) and (e) are revised to read 
as follows:


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

* * * * *
    (c) A licensee who is required to pay an annual fee under this 
section may qualify as a small entity. If a licensee qualifies as a 
small entity and provides

[[Page 32475]]

the Commission with the proper certification along with its annual fee 
payment, the licensee may pay reduced annual fees as shown in this 
paragraph. Failure to file a small entity certification in a timely 
manner could result in the denial of any refund that might otherwise be 
due.

------------------------------------------------------------------------
                                                          Maximum annual
                                                              fee per
                                                             licensed
                                                             category
------------------------------------------------------------------------
Small Businesses Not Engaged in Manufacturing and Small
 Not-For-Profit Organizations (Gross Annual Receipts):
    $350,000 to $5 million..............................          $2,300
    Less than $350,000..................................             500
Manufacturing entities that have an average of 500
 employees or less:
    35 to 500 employees.................................           2,300
    Less than 35 employees..............................             500
Small Governmental Jurisdictions (Including publicly
 supported educational institutions) (Population):
    20,000 to 50,000....................................           2,300
    Less than 20,000....................................             500
Educational Institutions that are not State or Publicly
 Supported, and have 500 Employees or Less:
    35 to 500 employees.................................           2,300
    Less than 35 employees..............................             500
------------------------------------------------------------------------

    (1) A licensee qualifies as a small entity if it meets the size 
standards established by the NRC (See 10 CFR 2.810).
    (2) A licensee who seeks to establish status as a small entity for 
the purpose of paying the annual fees required under this section must 
file a certification statement with the NRC. The licensee must file the 
required certification on NRC Form 526 for each license under which it 
is billed. NRC Form 526 can be accessed through the NRC's external web 
site at http://www.nrc.gov. Licensees who cannot access the NRC's 
external web site may obtain NRC Form 526 through the local point of 
contact listed in the NRC's ``Materials Annual Fee Billing Handbook,'' 
NUREG/BR-0238, which is enclosed with each annual fee billing, by 
calling the fee staff at 301-415-7554, or by e-mailing the fee staff at 
[email protected]>.
    (3) For purposes of this section, the licensee must submit a new 
certification with its annual fee payment each year.
    (4) The maximum annual fee a small entity is required to pay is 
$2,300 for each category applicable to the license(s).
    (d) The FY 2001 annual fees for materials licensees and holders of 
certificates, registrations or approvals subject to fees under this 
section are shown in this paragraph. The FY 2001 annual fees are 
comprised of a base annual fee and an additional charge (surcharge). 
The activities comprising the FY 2001 surcharge are shown for 
convenience in paragraph (e) of this section.

   Schedule of Materials Annual Fees and Fees for Government Agencies
                             Licensed by NRC
------------------------------------------------------------------------
             Category of materials licenses                Annual fees 1
----------------------------------------------------------------2 3-----
1. Special nuclear material:
    A.(1) Licenses for possession and use of U-235 or
     plutonium for fuel fabrication activities.
        (a) Strategic Special Nuclear Material:
            Babcock & Wilcox SNM-42.....................      $3,545,000
            Nuclear Fuel Services SNM-124...............       3,545,000
        (b) Low Enriched Uranium in Dispersible Form
         Used for Fabrication of Power Reactor Fuel:
            Westinghouse Electric Company LLC SNM-33....       1,146,000
            Global Nuclear Fuel--Americas, LLC SNM-1097.       1,146,000
            Framatome ANP Richland, Inc. SNM-1227.......       1,146,000
            Westinghouse Electric--Columbia SNM-1107....       1,146,000
    (2) All other special nuclear materials licenses not
     included in Category 1A(1) which are licensed for
     fuel cycle activities.
        (a) Facilities with limited operations:                  467,000
         Framatome Cogema SNM-1168......................
        (b) All Others: General Electric SNM-960........         340,000
    B. Licenses for receipt and storage of spent fuel at         N/A\11\
     an independent spent fuel storage installation
     (ISFSI)............................................
    C. Licenses for possession and use of special                  1,400
     nuclear material in sealed sources contained in
     devices used in industrial measuring systems,
     including x-ray fluorescence analyzers.............
    D. All other special nuclear material licenses,                3,300
     except licenses authorizing special nuclear
     material in unsealed form in combination that would
     constitute a critical quantity, as defined in Sec.
     150.11 of this chapter, for which the licensee
     shall pay the same fees as those for Category 1A(2)
    E. Licenses or certificates for the operation of a         2,208,000
     uranium enrichment facility........................
2. Source material:
    A.(1) Licenses for possession and use of source              509,000
     material for refining uranium mill concentrates to
     uranium hexafluoride...............................
    (2) Licenses for possession and use of source
     material in recovery operations such as milling, in-
     situ leaching, heap-leaching, ore buying stations,
     ion exchange facilities and in processing of ores
     containing source material for extraction of metals
     other than uranium or thorium, including licenses
     authorizing the possession of byproduct waste
     material (tailings) from source material recovery
     operations, as well as licenses authorizing the
     possession and maintenance of a facility in a
     standby mode:......................................
        Class I facilities \4\..........................          94,300
        Class II facilities \4\.........................          79,000
        Other facilities \4\............................          29,900

[[Page 32476]]

 
    (3) Licenses that authorize the receipt of byproduct          58,200
     material, as defined in section 11e.(2) of the
     Atomic Energy Act, from other persons for
     possession and disposal, except those licenses
     subject to the fees in Category 2A(2) or Category
     2A(4)..............................................
    (4) Licenses that authorize the receipt of byproduct           9,200
     material, as defined in section 11e.(2) of the
     Atomic Energy Act, from other persons for
     possession and disposal incidental to the disposal
     of the uranium waste tailings generated by the
     licensee's milling operations, except those
     licenses subject to the fees in Category 2A(2).....
    B. Licenses that authorize only the possession, use              690
     and/or installation of source material for
     shielding..........................................
    C. All other source material licenses...............          11,000
3. Byproduct material:
    A. Licenses of broad scope for possession and use of          20,500
     byproduct material issued under parts 30 and 33 of
     this chapter for processing or manufacturing of
     items containing byproduct material for commercial
     distribution.......................................
    B. Other licenses for possession and use of                    5,300
     byproduct material issued under part 30 of this
     chapter for processing or manufacturing of items
     containing byproduct material for commercial
     distribution.......................................
    C. Licenses issued under Secs.  32.72, 32.73, and/or          12,300
     32.74 of this chapter authorizing the processing or
     manufacturing and distribution or redistribution of
     radiopharmaceuticals, generators, reagent kits and/
     or sources and devices containing byproduct
     material. This category also includes the
     possession and use of source material for shielding
     authorized under part 40 of this chapter when
     included on the same license. This category does
     not apply to licenses issued to nonprofit
     educational institutions whose processing or
     manufacturing is exempt under 10 CFR 171.11(a)(1).
     These licenses are covered by fee Category 3D......
    D. Licenses and approvals issued under Secs.  32.72,           3,900
     32.73, and/or 32.74 of this chapter authorizing
     distribution or redistribution of
     radiopharmaceuticals, generators, reagent kits and/
     or sources or devices not involving processing of
     byproduct material. This category includes licenses
     issued under Secs.  32.72, 32.73 and 32.74 of this
     chapter to nonprofit educational institutions whose
     processing or manufacturing is exempt under 10 CFR
     171.11(a)(1). This category also includes the
     possession and use of source material for shielding
     authorized under part 40 of this chapter when
     included on the same license.......................
    E. Licenses for possession and use of byproduct                3,200
     material in sealed sources for irradiation of
     materials in which the source is not removed from
     its shield (self-shielded units)...................
    F. Licenses for possession and use of less than                5,800
     10,000 curies of byproduct material in sealed
     sources for irradiation of materials in which the
     source is exposed for irradiation purposes. This
     category also includes underwater irradiators for
     irradiation of materials in which the source is not
     exposed for irradiation purposes...................
    G. Licenses for possession and use of 10,000 curies           20,900
     or more of byproduct material in sealed sources for
     irradiation of materials in which the source is
     exposed for irradiation purposes. This category
     also includes underwater irradiators for
     irradiation of materials in which the source is not
     exposed for irradiation purposes...................
    H. Licenses issued under subpart A of part 32 of               3,200
     this chapter to distribute items containing
     byproduct material that require device review to
     persons exempt from the licensing requirements of
     part 30 of this chapter, except specific licenses
     authorizing redistribution of items that have been
     authorized for distribution to persons exempt from
     the licensing requirements of part 30 of this
     chapter............................................
    I. Licenses issued under subpart A of part 32 of               4,600
     this chapter to distribute items containing
     byproduct material or quantities of byproduct
     material that do not require device evaluation to
     persons exempt from the licensing requirements of
     part 30 of this chapter, except for specific
     licenses authorizing redistribution of items that
     have been authorized for distribution to persons
     exempt from the licensing requirements of part 30
     of this chapter....................................
    J. Licenses issued under subpart B of part 32 of               2,100
     this chapter to distribute items containing
     byproduct material that require sealed source and/
     or device review to persons generally licensed
     under part 31 of this chapter, except specific
     licenses authorizing redistribution of items that
     have been authorized for distribution to persons
     generally licensed under part 31 of this chapter...
    K. Licenses issued under subpart B of part 31 of               1,400
     this chapter to distribute items containing
     byproduct material or quantities of byproduct
     material that do not require sealed source and/or
     device review to persons generally licensed under
     part 31 of this chapter, except specific licenses
     authorizing redistribution of items that have been
     authorized for distribution to persons generally
     licensed under part 31 of this chapter.............
    L. Licenses of broad scope for possession and use of          10,000
     byproduct material issued under parts 30 and 33 of
     this chapter for research and development that do
     not authorize commercial distribution..............
    M. Other licenses for possession and use of                    4,400
     byproduct material issued under part 30 of this
     chapter for research and development that do not
     authorize commercial distribution..................
    N. Licenses that authorize services for other                 $4,800
     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..........................
    O. Licenses for possession and use of byproduct               12,500
     material issued under part 34 of this chapter for
     industrial radiography operations. This category
     also includes the possession and use of source
     material for shielding authorized under part 40 of
     this chapter when authorized on the same license...
    P. All other specific byproduct material licenses,             2,400
     except those in Categories 4A through 9D...........
    Q. Registration of devices generally licensed under         \13\ N/A
     part 31 of this chapter............................
4. Waste disposal and processing:
    A. Licenses specifically authorizing the receipt of          \5\ N/A
     waste byproduct material, source material, or
     special nuclear material from other persons for the
     purpose of contingency storage or commercial land
     disposal by the licensee; or licenses authorizing
     contingency storage of low-level radioactive waste
     at the site of nuclear power reactors; or licenses
     for receipt of waste from other persons for
     incineration or other treatment, packaging of
     resulting waste and residues, and transfer of
     packages to another person authorized to receive or
     dispose of waste material..........................
    B. Licenses specifically authorizing the receipt of            9,800
     waste byproduct material, source material, or
     special nuclear material from other persons for the
     purpose of packaging or repackaging the material.
     The licensee will dispose of the material by
     transfer to another person authorized to receive or
     dispose of the material............................

[[Page 32477]]

 
    C. Licenses specifically authorizing the receipt of            7,400
     prepackaged waste byproduct material, source
     material, or special nuclear material from other
     persons. The licensee will dispose of the material
     by transfer to another person authorized to receive
     or dispose of the material.........................
5. Well logging:
    A. Licenses for possession and use of byproduct                8,800
     material, source material, and/or special nuclear
     material for well logging, well surveys, and tracer
     studies other than field flooding tracer studies...
    B. Licenses for possession and use of byproduct              \5\ N/A
     material for field flooding tracer studies.........
6. Nuclear laundries: A. Licenses for commercial                  16,900
 collection and laundry of items contaminated with
 byproduct material, source material, or special nuclear
 material...............................................
7. Medical licenses:
    A. Licenses issued under parts 30, 35, 40, and 70 of          13,900
     this chapter for human use of byproduct material,
     source material, or special nuclear material in
     sealed sources contained in teletherapy devices.
     This category also includes the possession and use
     of source material for shielding when authorized on
     the same license...................................
    B. Licenses of broad scope issued to medical                  24,200
     institutions or two or more physicians under parts
     30, 33, 35, 40, and 70 of this chapter authorizing
     research and development, including human use of
     byproduct material except licenses for byproduct
     material, source material, or special nuclear
     material in sealed sources contained in teletherapy
     devices. This category also includes the possession
     and use of source material for shielding when
     authorized on the same license.\9\.................
    C. Other licenses issued under parts 30, 35, 40, and           4,600
     70 of this chapter for human use of byproduct
     material, source material, and/or special nuclear
     material except licenses for byproduct material,
     source material, or special nuclear material in
     sealed sources contained in teletherapy devices.
     This category also includes the possession and use
     of source material for shielding when authorized on
     the same license.\9\...............................
8. Civil defense: A. Licenses for possession and use of            1,100
 byproduct material, source material, or special nuclear
 material for civil defense activities..................
9. Device, product, or sealed source safety evaluation:
    A. Registrations issued for the safety evaluation of           5,800
     devices or products containing byproduct material,
     source material, or special nuclear material,
     except reactor fuel devices, for commercial
     distribution.......................................
    B. Registrations issued for the safety evaluation of           5,800
     devices or products containing byproduct material,
     source material, or special nuclear material
     manufactured in accordance with the unique
     specifications of, and for use by, a single
     applicant, except reactor fuel devices.............
    C. Registrations issued for the safety evaluation of           1,700
     sealed sources containing byproduct material,
     source material, or special nuclear material,
     except reactor fuel, for commercial distribution...
    D. Registrations issued for the safety evaluation of             590
     sealed sources containing byproduct material,
     source material, or special nuclear material,
     manufactured in accordance with the unique
     specifications of, and for use by, a single
     applicant, except reactor fuel.....................
10. Transportation of radioactive material:
    A. Certificates of Compliance or other package
     approvals issued for design of casks, packages, and
     shipping containers.
    Spent Fuel, High-Level Waste, and plutonium air              \6\ N/A
     packages...........................................
    Other Casks.........................................         \6\ N/A
    B. Quality assurance program approvals issued under
     10 CFR part 71.
        Users and Fabricators...........................          62,500
        Users...........................................           6,100
11. Standardized spent fuel facilities..................         \6\ N/A
12. Special Projects....................................         \6\ N/A
13. A. Spent fuel storage cask Certificate of Compliance         \6\ N/A
    B. General licenses for storage of spent fuel under         \12\ N/A
     10 CFR 72.210
14. Byproduct, source, or special nuclear material               \7\ N/A
 licenses and other approvals authorizing
 decommissioning, decontamination, reclamation, or site
 restoration activities under 10 CFR parts 30, 40, 70,
 72, and 76 of this chapter.............................
15. Import and Export licenses..........................         \8\ N/A
16. Reciprocity.........................................         \8\ N/A
17. Master materials licenses of broad scope issued to           306,000
 Government agencies....................................
18. Department of Energy:
    A. Certificates of Compliance.......................  \10\ 1,107,000
    B. Uranium Mill Tailing Radiation Control Act               654,000
     (UMTRCA) activities................................
------------------------------------------------------------------------
\1\ Annual fees will be assessed based on whether a licensee held a
  valid license with the NRC authorizing possession and use of
  radioactive material during the current fiscal year. However, the
  annual fee is waived for those materials 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 prior to October 1, 2000, and permanently ceased
  licensed activities entirely by September 30, 2000. Annual fees for
  licensees who filed for termination of a license, downgrade of a
  license, or for a possession only license during the fiscal year and
  for new licenses issued during the fiscal year will be prorated in
  accordance with the provisions of Sec.  171.17. If a person holds more
  than one license, certificate, registration, or approval, the annual
  fee(s) will be assessed for each license, certificate, registration,
  or approval held by that person. For licenses that authorize more than
  one activity on a single license (e.g., human use and irradiator
  activities), annual fees will be assessed for each category applicable
  to the license. Licensees paying annual fees under Category 1A(1) are
  not subject to the annual fees for Category 1C and 1D for sealed
  sources authorized in the license.
\2\ Payment of the prescribed annual fee does not automatically renew
  the license, certificate, registration, or approval for which the fee
  is paid. Renewal applications must be filed in accordance with the
  requirements of parts 30, 40, 70, 71, 72, or 76 of this chapter.
\3\ Each fiscal year, fees for these materials licenses will be
  calculated and assessed in accordance with Sec.  171.13 and will be
  published in the Federal Register for notice and comment.
\4\ A Class I license includes mill licenses issued for the extraction
  of uranium from uranium ore. A Class II license includes solution
  mining licenses (in-situ and heap leach) issued for the extraction of
  uranium from uranium ores including research and development licenses.
  An ``other'' license includes licenses for extraction of metals, heavy
  metals, and rare earths.
\5\ There are no existing NRC licenses in these fee categories. If NRC
  issues a license for these categories, the Commission will consider
  establishing an annual fee for this type of license.

[[Page 32478]]

 
\6\ Standardized spent fuel facilities, 10 CFR parts 71 and 72
  Certificates of Compliance, and special reviews, such as topical
  reports, are not assessed an annual fee because the generic costs of
  regulating these activities are primarily attributable to users of the
  designs, certificates, and topical reports.
\7\ Licensees in this category are not assessed an annual fee because
  they are charged an annual fee in other categories while they are
  licensed to operate.
\8\ No annual fee is charged because it is not practical to administer
  due to the relatively short life or temporary nature of the license.
\9\ Separate annual fees will not be assessed for pacemaker licenses
  issued to medical institutions who also hold nuclear medicine licenses
  under Categories 7B or 7C.
\10\ This includes Certificates of Compliance issued to DOE that are not
  under the Nuclear Waste Fund.
\11\ See 10 CFR 171.15(c).
\12\ See 10 CFR 171.15(c).
\13\ No annual fee is charged for this category because the cost of the
  general license registration program will be recovered through 10 CFR
  part 170 fees.

    (e) The activities comprising the surcharge are as follows:
    (1) LLW disposal generic activities;
    (2) Activities not directly attributable to an existing NRC 
licensee or class(es) of licensees (e.g., international cooperative 
safety program and international safeguards activities, support for the 
Agreement State program, and Site Decommissioning Management Plan 
(SDMP) activities); and
    (3) Activities not currently assessed licensing and inspection fees 
under 10 CFR part 170 based on existing law or Commission policy (e.g., 
reviews and inspections of nonprofit educational institutions and 
reviews for Federal agencies; activities related to decommissioning and 
reclamation; and costs that would not be collected from small entities 
based on Commission policy in accordance with the Regulatory 
Flexibility Act).

    15. In Sec. 171.19, paragraphs (b) and (d) are revised to read as 
follows:


Sec. 171.19  Payment.

* * * * *
    (b) Annual fees in the amount of $100,000 or more and described in 
the Federal Register document issued under Sec. 171.13, and annual fees 
for Class I and Class II uranium recovery licensees must be paid in 
quarterly installments of 25 percent as billed by the NRC. The quarters 
begin on October 1, January 1, April 1, and July 1 of each fiscal year. 
The NRC will adjust the fourth quarterly invoice to recover the full 
amount of the revised annual fee. If the amounts collected in the first 
three quarters exceed the amount of the revised annual fee, the 
overpayment will be refunded. Licensees whose annual fee for the 
previous fiscal year was less than $100,000 (billed on the anniversary 
date of the license), and whose revised annual fee for the current 
fiscal year is $100,000 or greater (subject to quarterly billing), will 
be issued a bill upon publication of the final rule for the full amount 
of the revised annual fee for the current fiscal year, less any 
payments received for the current fiscal year based on the anniversary 
date billing process.
* * * * *
    (d) Annual fees of less than $100,000 must be paid as billed by the 
NRC. Materials license annual fees that are less than $100,000, except 
those for Class I and Class II uranium recovery licensees, are billed 
on the anniversary date of the license. The materials licensees that 
are billed on the anniversary date of the license are those covered by 
fee categories 1C, 1D, 2A(2) Other Facilities, 2A(3), 2A(4), 2B, 2C, 3A 
through 3P, 4B through 9D, 10A, and 10B.
* * * * *

    Dated at Rockville, Maryland, this 31st day of May, 2001.
    For the Nuclear Regulatory Commission.
 Jesse L. Funches,
Chief Financial Officer.

    Note: This Appendix will not appear in the code of Federal 
Register.

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

I. Background

    The Regulatory Flexibility Act (RFA), as amended, (5 U.S.C. 601 
et seq.) requires that agencies consider the impact of their 
rulemakings on small entities and, consistent with applicable 
statutes, consider alternatives to minimize these impacts on the 
businesses, organizations, and government jurisdictions to which 
they apply.
    The NRC has established standards for determining which NRC 
licensees qualify as small entities (10 CFR 2.801). These size 
standards reflect the Small Business Administration's most common 
receipts-based size standards and include a size standard for 
business concerns that are manufacturing entities. The NRC uses the 
size standards to reduce the impact of annual fees on small entities 
by establishing a licensee's eligibility to qualify for a maximum 
small entity fee. The small entity fee categories in Sec. 171.16(c) 
of this final rule are based on the NRC's size standards.
    From FY 1991 through FY 2000, the Omnibus Budget Reconciliation 
Act (OBRA-90), as amended, required that the NRC recover 
approximately 100 percent of its budget authority, less 
appropriations from the Nuclear Waste Fund, by assessing license and 
annual fees. The FY 2001 Energy and Water Development Appropriations 
Act amended OBRA-90 to decrease the NRC's fee recovery amount for FY 
2001 to 98 percent of the NRC's budget. Certain NRC costs related to 
reviews and assistance provided to other Federal agencies and States 
were excluded from the fee recovery requirement for FY 2001 by the 
Energy and Water Development Appropriations Act. The amount to be 
recovered for FY 2001 is approximately $453.3 million.
    OBRA-90 requires that the schedule of charges established by 
rule should fairly and equitably allocate the total amount to be 
recovered from NRC's licensees and be assessed under the principle 
that licensees who require the greatest expenditure of agency 
resources pay the greatest annual charges. Since 1991, the NRC has 
complied with OBRA-90 by issuing a final rule that amends its fee 
regulations. These final rules have established the methodology used 
by NRC in identifying and determining the fees to be assessed and 
collected in any given fiscal year.
    In FY 1995, the NRC announced that, in order to stabilize fees, 
annual fees would be adjusted only by the percentage change (plus or 
minus) in NRC's total budget authority, adjusted for changes in 
estimated collections for 10 CFR part 170 fees, the number of 
licensees paying annual fees, and as otherwise needed to assure the 
billed amounts resulted in the required collections. The NRC 
indicated that if there were a substantial change in the total NRC 
budget authority or the magnitude of the budget allocated to a 
specific class of licensees, the annual fee base would be 
recalculated.
    In FY 1999, the NRC concluded that there had been significant 
changes in the allocation of agency resources among the various 
classes of licensees and established rebaselined annual fees for FY 
1999. The NRC stated in the final FY 1999 rule that to stabilize 
fees it would continue to adjust the annual fees by the percent 
change method established in FY 1995, unless there were a 
substantial change in the total NRC budget or the magnitude of the 
budget allocated to a specific class of licensees, in which case the 
annual fee base would be reestablished.
    After carefully considering all factors, including the changes 
to the amount of the budget allocated to classes of licensees, and 
weighing the complex issues related to both fairness and stability 
of fees, the Commission has determined that it is appropriate to 
rebaseline its part 171 annual fees in FY 2001. This rebaselining 
results in reduced annual fees for a majority of the categories of

[[Page 32479]]

licenses, and increased annual fees for other categories.
    The Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA) is intended to reduce regulatory burdens imposed by Federal 
agencies on small businesses, nonprofit organizations, and 
governmental jurisdictions. SBREFA also provides Congress with the 
opportunity to review agency rules before they go into effect. Under 
this legislation, the NRC annual fee rule is considered a ``major'' 
rule and must be reviewed by Congress and the Comptroller General 
before the rule becomes effective. SBREFA also requires that an 
agency prepare a guide to assist small entities in complying with 
each rule for which a final regulatory flexibility analysis is 
prepared. This Regulatory Flexibility Analysis (RFA) and the small 
entity compliance guide (Attachment 1) have been prepared for the FY 
2001 fee rule as required by law.

II. Impact on Small Entities

    The fee rule results in substantial fees being charged to those 
individuals, organizations, and companies that are licensed by the 
NRC, including those licensed under the NRC materials program. The 
comments received on previous proposed fee rules and the small 
entity certifications received in response to previous proposed fee 
rules indicate that NRC licensees qualifying as small entities under 
the NRC's size standards are primarily materials licensees. 
Therefore, this analysis will focus on the economic impact of the 
annual fees on materials licensees. About 20 percent of these 
licensees (approximately 1,400 licensees for FY 2000) have requested 
small entity certification in the past.
    The commenters on previous fee rulemakings consistently 
indicated that the following results would occur if the proposed 
annual fees were not modified.
    1. Large firms would gain an unfair competitive advantage over 
small entities. Commenters noted that small and very small companies 
(``mom and pop'' operations) would find it more difficult to absorb 
the annual fee than a large corporation or a high-volume type of 
operation. In competitive markets, such as soils testing, annual 
fees would put small licensees at an extreme competitive 
disadvantage with their much larger competitors because the proposed 
fees would be the same for a two-person licensee as for a large firm 
with thousands of employees.
    2. Some firms would be forced to cancel their licenses. A 
licensee with receipts of less than $500,000 per year stated that 
the proposed rule would, in effect, force it to relinquish its soil 
density gauge and license, thereby reducing its ability to do its 
work effectively. Other licensees, especially well-loggers, noted 
that the increased fees would force small businesses to get rid of 
the materials license altogether. Commenters stated that the 
proposed rule would result in about 10 percent of the well-logging 
licensees terminating their licenses immediately and approximately 
25 percent terminating their licenses before the next annual 
assessment.
    3. Some companies would go out of business. 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.
    4. Some companies would have budget problems. Many medical 
licensees noted that, along with reduced reimbursements, the 
proposed increase of the existing fees and the introduction of 
additional fees would significantly affect their budgets. Others 
noted that, in view of the cuts by Medicare and other third party 
carriers, the fees would produce a hardship and some facilities 
would experience a great deal of difficulty in meeting this 
additional burden.
    Since annual fees for materials licenses were first established 
in 1991, approximately 3,000 license, approval, and registration 
terminations have been requested. Although some of these 
terminations were requested because the license was no longer needed 
or licenses or registrations could be combined, indications are that 
other termination requests were due to the economic impact of the 
fees.
    To alleviate the significant impact of the annual fees on a 
substantial number of small entities, the NRC considered the 
following alternatives in accordance with the RFA as it developed 
each of its fee rules since 1991.
    1. Base fees on some measure of the amount of radioactivity 
possessed by the licensee (e.g., number of sources).
    2. Base fees on the frequency of use of the licensed radioactive 
material (e.g., volume of patients).
    3. Base fees on the NRC size standards for small entities.
    The NRC has reexamined its previous evaluations of these 
alternatives and continues to believe that establishment of a 
maximum fee for small entities is the most appropriate and effective 
option for reducing the impact of its fees on small entities.

III. Maximum Fee

    The RFA and its implementing guidance do not provide specific 
guidelines on what constitutes a significant economic impact on a 
small entity. Therefore, the NRC has no benchmark to assist it in 
determining the amount or the percent of gross receipts that should 
be charged to a small entity. In developing the maximum small entity 
annual fee in FY 1991, the NRC examined its 10 CFR part 170 
licensing and inspection fees and Agreement State fees for those fee 
categories which were expected to have a substantial number of small 
entities. Six Agreement States--Washington, Texas, Illinois, 
Nebraska, New York, and Utah, were used as benchmarks in the 
establishment of the maximum small entity annual fee in 1991. 
Because small entities in those Agreement States were paying the 
fees, the NRC concluded that these fees did not have a significant 
impact on a substantial number of small entities. Therefore, those 
fees were considered a useful benchmark in establishing the NRC 
maximum small entity annual fee.
    The NRC maximum small entity fee was established as an annual 
fee only. In addition to the annual fee, NRC small entity licensees 
were required to pay amendment, renewal and inspection fees. In 
setting the small entity annual fee, NRC ensured that the total 
amount small entities paid annually would not exceed the maximum 
paid in the six benchmark Agreement States.
    Of the six benchmark states, the maximum Agreement State fee of 
$3,800 in Washington was used as the ceiling for the total fees. 
Thus the NRC's small entity fee was developed to ensure that the 
total fees paid by NRC small entities would not exceed $3,800. Given 
the NRC's 1991 fee structure for inspections, amendments, and 
renewals, a small entity annual fee established at $1,800 allowed 
the total fee (small entity annual fee plus yearly average for 
inspections, amendments and renewal fees) for all categories to fall 
under the $3,800 ceiling.
    In 1992, the NRC introduced a second, lower tier to the small 
entity fee in response to concerns that the $1,800 fee, when added 
to the license and inspection fees, still imposed a significant 
impact on small entities with relatively low gross annual receipts. 
For purposes of the annual fee, each small entity size standard was 
divided into an upper and lower tier. Small entity licensees in the 
upper tier continued to pay an annual fee of $1,800 while those in 
the lower tier paid an annual fee of $400.
    Based on the changes that had occurred since FY 1991, the NRC 
re-analyzed its maximum small entity annual fees in FY 2000 and 
determined that the small entity fees should be increased by 25 
percent to reflect the increase in the average fees paid by other 
materials licensees since FY 1991, as well as changes in the fee 
structure for materials licensees. The structure of the fees that 
NRC charged to its materials licensees changed during the period 
between 1991 and 1999. Costs for materials license inspections, 
renewals, and amendments, which were previously recovered through 
part 170 fees for services, are now included in the part 171 annual 
fees assessed to materials licensees. As a result of the re-
analysis, the maximum small entity annual fee was increased from 
$1,800 to $2,300 in FY 2000. By increasing the maximum annual fee 
for small entities from $1,800 to $2,300, the annual fee for many 
small entities was reduced while at the same time materials 
licensees, including small entities, would pay for most of the costs 
attributable to them. The costs not recovered from small entities 
are allocated to other materials licensees and to power reactors.
    While reducing the impact on many small entities, the NRC 
determined that the maximum annual fee of $2,300 for small entities 
may continue to have a significant impact on materials licensees 
with annual gross receipts in the thousands of dollars range. 
Therefore, the NRC continued to provide a lower-tier small entity 
annual fee for small entities with relatively low gross annual 
receipts, and for manufacturing concerns and educational 
institutions not State or publicly supported, with less than 35 
employees. The NRC also increased the lower tier small entity fee by 
the same percentage increase to the maximum small entity annual fee. 
This 25 percent increase resulted in the lower tier small entity fee 
increasing from $400 to $500 in FY 2000.
    In the FY 2000 fee rule (65 FR 36946; June 12, 2000), the NRC 
stated that it would re-

[[Page 32480]]

examine small entity fees each year that annual fees are 
rebaselined. Accordingly, the NRC has re-examined the small entity 
fees, and does not believe that a change to the small entity fees is 
warranted for FY 2001. The revision to the small entity fees in FY 
2000 was the first change to the fees since they were introduced in 
FY 1991 and FY 1992. The revised fees were based on on the 25 
percent increase in average total fees assessed to other materials 
licensees since the small entity fees were first established and 
changes that had occurred in the fee structure for materials 
licensees over time. The NRC does not consider the approximately 13 
percent decrease in the average FY 2001 fees for other licensees to 
be significant enough to warrant another change to the small entity 
fees this year.
    Unlike the annual fees assessed to other licensees, the small 
entity fees are not designed to recover the agency costs associated 
with particular licensees. Rather, they are designed to provide some 
fee relief for qualifying small entity licensees while at the same 
time recovering from those licensees some of the agency's costs for 
activities that benefit them. The costs not recovered from small 
entities must be recovered from other licensees. The current small 
entity fees of $500 and $2,300 provide considerable relief to many 
small entities.
    The NRC has declined to adopt the suggestion of one commenter on 
the FY 2001 proposed fee rule that the NRC establish additional 
tiers of annual fees for small entities to further reduce the 
license fee burden on smaller entities. Reductions in the fees for 
small entities must be paid by other NRC licensees in order to meet 
the requirements of OBRA-90, as amended, that NRC must recover most 
of its budget through fees. While establishing more tiers would 
provide additional fee relief for some small entities, it would 
result in an increase in the small entity subsidy other licensees 
pay. For FY 2000, approximately 35 percent of the small entities 
qualifying for reduced annual fees qualified for the lower tier 
small entity fee. The NRC believes that maintaining a single lower 
tier annual fee for small entities with relatively low gross annual 
receipts of less than $350,000, for small governmental jurisdictions 
with a population of less than 20,000, and for manufacturing 
entities that have an average of less than 35 employees continues to 
provide a further reduction of the impact of the annual fees to a 
significant number of small entities.
    In the future the NRC plans to re-examine the small entity fees 
every two years, in the same years in which it conducts the biennial 
review of fees as required by the CFO Act, instead of each year that 
annual fees are rebaselined as indicated in the FY 2000 fee rule. 
The annual fees for materials users now include the cost of 
amendments, renewals, and inspections. However, at a maximum, annual 
fees are rebaselined every three years, but may be rebaselined 
earlier if warranted. Therefore, reviewing the small entity fees 
only when the annual fees are rebaselined results in a variable 
schedule for the re-examinations and any potential changes to the 
fees. Re-examining the small entity annual fees every two years, on 
the same schedule as the biennial review under the CFO Act, provides 
a routine, predictable schedule and allows licensees to anticipate 
when potential changes to these fees might occur. Therefore, the NRC 
plans to re-examine the small entity fees in FY 2003.

IV. Summary

    The NRC has determined that the 10 CFR part 171 annual fees 
significantly impact a substantial number of small entities. A 
maximum fee for small entities strikes a balance between the 
requirement to recover 98 percent of the NRC budget and the 
requirement to consider means of reducing the impact of the fee on 
small entities. On the basis of its regulatory flexibility analysis, 
the NRC concludes that a maximum annual fee of $2,300 for small 
entities and a lower-tier small entity annual fee of $500 for small 
businesses and not-for-profit organizations with gross annual 
receipts of less than $350,000, small governmental jurisdictions 
with a population of less than 20,000, small manufacturing entities 
that have less than 35 employees, and educational institutions that 
are not State or publicly supported and have less than 35 employees, 
reduces the impact on small entities. At the same time, these 
reduced annual fees are consistent with the objectives of OBRA-90. 
Thus, the fees for small entities maintain a balance between the 
objectives of OBRA-90 and the RFA. Therefore, the analysis and 
conclusions established in the FY 2000 fee rule remain valid for FY 
2001.

Attachment 1 to Appendix A--Nuclear Regulatory Commission Small, Entity 
Compliance Guide, Fiscal Year 2001

Contents

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

Introduction

    The Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA) requires all Federal agencies to prepare a written guide 
for each ``major'' final rule as defined by the Act. The NRC's fee 
rule, published annually to comply with the Omnibus Budget 
Reconciliation Act of 1990 (OBRA-90), as amended, is considered a 
``major'' rule under SBREFA. Therefore, in compliance with the law, 
this compliance guide has been prepared to assist NRC material 
licensees in complying with the FY 2001 fee rule.
    Licensees may use this guide to determine whether they qualify 
as a small entity under NRC regulations and are eligible to pay 
reduced FY 2001 annual fees assessed under 10 CFR part 171. The NRC 
has established two tiers of separate annual fees for those 
materials licensees who qualify as small entities under NRC's size 
standards.
    Licensees who meet NRC's size standards for a small entity must 
submit a completed NRC Form 526 ``Certification of Small Entity 
Status for the Purposes of Annual Fees Imposed Under 10 CFR part 
171'' to qualify for the reduced annual fee. Effective with the 
final FY 2001 fee rule, the NRC will phase out sending NRC Form 526 
with each materials license annual fee invoice. This form can be 
accessed on the NRC's external web site at http://www.nrc.gov. The 
form can then be accessed by selecting ``Planning & Financial 
Management'' and then selecting ``NRC License Fee Program'' and 
under ``Forms'' selecting NRC Form 526. Licensees who cannot access 
the NRC's external web site may obtain NRC Form 526 through the 
local point of contact listed in the NRC's ``Materials Annual Fee 
Billing Handbook,'' NUREG/BR-0238, which is enclosed with each 
annual fee billing. Alternatively, the form may be obtained by 
calling the fee staff at 301-415-7554, or by e-mailing the fee staff 
at [email protected]. The completed form, the appropriate small entity 
fee, and the payment copy of the invoice should be mailed to the 
U.S. Nuclear Regulatory Commission, License Fee and Accounts 
Receivable Branch, to the address indicated on the invoice. Failure 
to file the NRC small entity certification Form 526 in a timely 
manner may result in the denial of any refund that might otherwise 
be due.

NRC Definition of Small Entity

    The NRC has defined a small entity for purposes of compliance 
with its regulations (10 CFR 2.810) as follows:
    1. Small business--a for-profit concern that provides a service 
or a concern not engaged in manufacturing with average gross 
receipts of $5 million or less over its last 3 completed fiscal 
years;
    2. Manufacturing industry--a manufacturing concern with an 
average number of 500 or fewer employees based upon employment 
during each pay period for the preceding 12 calendar months;
    3. Small 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.
---------------------------------------------------------------------------

    To further assist licensees in determining if they qualify as a 
small entity, we are providing the following guidelines, which are 
based on the Small Business Administration regulations.
    1. A small business concern is an independently owned and 
operated entity which is not considered dominant in its field of 
operations.
    2. The number of employees means the total number of employees 
in the parent company, any subsidiaries and/or affiliates, including 
both foreign and domestic locations (i.e., not solely the number of

[[Page 32481]]

employees working for the licensee or conducting NRC licensed 
activities for the company).
    3. Gross annual receipts includes all revenue received or 
accrued from any source, including receipts of the parent company, 
any subsidiaries and/or affiliates, and account for both foreign and 
domestic locations. Receipts include all revenues from sales of 
products and services, interest, rent, fees, and commissions, from 
whatever sources derived (i.e., not solely receipts from NRC 
licensed activities).
    4. A licensee who is a subsidiary of a large entity does not 
qualify as a small entity.

NRC Small Entity Fees

    In 10 CFR 171.16 (c), the NRC has established two tiers of small 
entity fees for licensees that qualify under the NRC's size 
standards. The fees are as follows:

------------------------------------------------------------------------
                                                          Maximum annual
                                                              fee per
                                                             licensed
                                                             category
------------------------------------------------------------------------
Small Business Not Engaged in Manufacturing and Small
 Not-For Profit Organizations (Gross Annual Receipts):
    $350,000 to $5 million..............................          $2,300
    Less than $350,000..................................             500
Manufacturing entities that have an average of 500
 employees or less:
    35 to 500 employees.................................           2,300
    Less than 35 employees..............................             500
Small Governmental Jurisdictions (Including publicly
 supported educational institutions) (Population):
    20,000 to 50,000....................................           2,300
    Less than 20,000....................................             500
Educational Institutions that are not State or Publicly
 Supported, and have 500 Employees or Less:
    35 to 500 employees.................................           2,300
    Less than 35 employees..............................             500
------------------------------------------------------------------------

    To pay a reduced annual fee, a licensee must use NRC Form 526. 
Effective with the final FY 2001 fee rule, the NRC is phasing out 
mailing NRC Form 526 with each annual fee invoice issued to 
materials licensees. Instead, licensees can access this form on the 
NRC's external web site at http://www.nrc.gov. The form can then be 
accessed by selecting ``Planning & Financial Management'' and then 
selecting ``NRC License Fee Program'' and under ``Forms'' selecting 
NRC Form 526. Those licensees that qualify as a ``small entity'' 
under the NRC size standards at 10 CFR 2.810 would be able to 
complete the form in accordance with the instructions provided, and 
submit the completed form and the appropriate payment to the address 
provided on the invoice. Licensees who cannot access the NRC's 
external web site may obtain NRC Form 526 through the local point of 
contact listed in the NRC's ``Materials Annual Fee Billing 
Handbook,'' NUREG/BR-0238, which is enclosed with each annual fee 
invoice. Alternatively, licensees may obtain the form by calling the 
fee staff at 301-415-7544, or by e-mailing us at [email protected].

Instructions for Completing NRC Small Entity Form 526

    1. File a separate NRC Form 526 for each annual fee invoice 
received.
    2. Complete all items on NRC Form 526 as follows:
    a. The license number and invoice number must be entered exactly 
as they appear on the annual fee invoice.
    b. The Standard Industrial Classification (SIC) Code must be 
entered if known.
    c. The licensee's name and address must be entered as they 
appear on the invoice. Name and/or address changes for billing 
purposes must be annotated on the invoice. Correcting the name and/
or address on NRC Form 526, or on the invoice does not constitute a 
request to amend the license. Any request to amend a license is to 
be submitted to the respective licensing staffs in the NRC Regional 
or Headquarters Offices.
    d. Check the appropriate size standard for which the licensee 
qualifies as a small entity. Check only one box. Note the following:
    (1) A licensee who is a subsidiary of a large entity does not 
qualify as a small entity.
    (2) The size standards apply to the licensee, including all 
parent companies and affiliates--not the individual authorized users 
listed in the license or the particular segment of the organization 
that uses licensed material.
    (3) Gross annual receipts means all revenue in whatever form 
received or accrued from whatever sources--not solely receipts from 
licensed activities. There are limited exceptions as set forth at 13 
CFR 121.104. These are: The term receipts excludes net capital gains 
or losses; taxes collected for and remitted to a taxing authority if 
included in gross or total income; proceeds from the transactions 
between a concern and its domestic or foreign affiliates (if also 
excluded from gross or total income on a consolidated return filed 
with the IRS); and amounts collected for another entity by a travel 
agent, real estate agent, advertising agent, or conference 
management service provider.
    (4) The owner of the entity, or an official empowered to act on 
behalf of the entity, must sign and date the small entity 
certification.
    The NRC sends invoices to its licensees for the full annual fee, 
even though some entities qualify for reduced fees as a small 
entity. Licensees who qualify as a small entity and file NRC Form 
526, which certifies eligibility for small entity fees, may pay the 
reduced fee, which for a full year is either $2,300 or $500 
depending on the size of the entity, for each fee category shown on 
the invoice. Licensees granted a license during the first six months 
of the fiscal year, and licensees who file for termination or for a 
possession only license and permanently cease licensed activities 
during the first six months of the fiscal year, pay only 50 percent 
of the annual fee for that year. Such an invoice states the ``Amount 
Billed Represents 50% Proration.'' This means the amount due from a 
small entity is not the prorated amount shown on the invoice, but 
rather one-half of the maximum annual fee shown on NRC Form 526 for 
the size standard under which the licensee qualifies, resulting in a 
fee of either $1150 or $250 for each fee category billed, instead of 
the full small entity annual fee of $2,300 or $500.
    A new small entity form (NRC Form 526) must be filed with the 
NRC each fiscal year to qualify for reduced fees in that year. 
Because a licensee's ``size,'' or the size standards, may change 
from year to year, the invoice reflects the full fee and a new Form 
526 must be completed and returned in order for the fee to be 
reduced to the small entity fee amount. Licensees will not be issued 
a new invoice for the reduced amount. The completed NRC Form 526, 
the payment of the appropriate small entity fee, and the ``Payment 
Copy'' of the invoice should be mailed to the U.S. Nuclear 
Regulatory Commission, License Fee and Accounts Receivable Branch at 
the address indicated on the invoice.
    If you have questions regarding the NRC's annual fees, please 
call the license fee staff at 301-415-7554, e-mail the fee staff at 
[email protected], or write to the U.S. Nuclear Regulatory Commission, 
Washington, DC 20555, Attention: Office of the Chief Financial 
Officer.
    False certification of small entity status could result in civil 
sanctions being imposed by the NRC under the Program Fraud Civil 
Remedies Act, 31 U.S.C. 3801 et. seq. NRC's implementing regulations 
are found at 10 CFR part 13.
[FR Doc. 01-14856 Filed 6-13-01; 8:45 am]
BILLING CODE 7590-01-P