[Federal Register Volume 67, Number 121 (Monday, June 24, 2002)]
[Rules and Regulations]
[Pages 42612-42641]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-15591]



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Part II





Nuclear Regulatory Commission





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10 CFR Parts 170 and 171



Revision of Fee Schedules; Fee Recovery for FY 2002; Final Rule

  Federal Register / Vol. 67, No. 121 / Monday, June 24, 2002 / Rules 
and Regulations  

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NUCLEAR REGULATORY COMMISSION

10 CFR Parts 170 and 171

RIN 3150-AG95


Revision of Fee Schedules; Fee Recovery for FY 2002

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

EFFECTIVE DATE: August 23, 2002.

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/reading-rm/adams.html. From this site, 
the public can gain entry into the NRC's Agencywide Documents Access 
and Management System (ADAMS), which provides text and image files of 
NRC's public documents. For more information, contact the NRC Public 
Document Room (PDR) Reference staff at 1-800-397-4209, or 301-415-4737, 
or by e-mail to [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 Web site (http://ruleforum.llnl.gov). This site provides the 
ability to upload comments as files (any format), if your Web browser 
supports that function. For information about the interactive 
rulemaking site, contact Ms. Carol Gallagher, 301-415-5905; e-mail 
[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; Telephone 301-415-6057 
or Robert Carlson; Telephone 301-415-8165, Office of the Chief 
Financial Officer, U.S. Nuclear Regulatory Commission, Washington, DC 
20555-0001.

SUPPLEMENTARY INFORMATION:

I. Background
II. Response 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 FYs 1991 through 2000, OBRA-90, as amended, required that the 
NRC recover approximately 100 percent of its budget authority, less the 
amount appropriated from the U.S. Department of Energy (DOE) 
administered NWF, by assessing fees. To address fairness and equity 
concerns raised by the NRC related to charging NRC license holders for 
agency expenses that do not provide a direct benefit to the licensee, 
the FY 2001 Energy and Water Development Appropriations Act amended 
OBRA-90 to decrease the NRC's fee recovery amount by 2 percent per year 
beginning in FY 2001, until the fee recovery amount is 90 percent in FY 
2005. As a result, the NRC is required to recover approximately 96 
percent of its FY 2002 budget authority, less the amounts appropriated 
from the NWF, through fees and other offsetting receipts. In addition, 
$36.0 million has been appropriated from the General Fund for 
activities related to homeland security. The FY 2002 Defense 
Appropriations Act states that this $36.0 million shall be excluded 
from license fee revenues. The total amount to be recovered in fees and 
other offsetting receipts for FY 2002 is approximately $479.5 million.
    The NRC assesses two types of fees to meet the requirements of 
OBRA-90, as amended. First, license and inspection fees, established in 
10 CFR part 170 under the authority of the Independent Offices 
Appropriation Act of 1952 (IOAA), 31 U.S.C. 9701, recover the NRC's 
costs of providing special benefits to identifiable applicants and 
licensees. Examples of the services provided by the NRC for which these 
fees are assessed are the review of applications for new licenses, and 
for certain types of existing licenses, the review of renewal 
applications, the review of amendment requests, and inspections. 
Second, annual fees established in 10 CFR part 171 under the authority 
of OBRA-90, recover generic and other regulatory costs not otherwise 
recovered through 10 CFR part 170 fees.

II. Response to Comments

    The NRC published the FY 2002 proposed fee rule on March 27, 2002 
(67 FR 14818), to solicit public comment on its proposed revisions to 
10 CFR parts 170 and 171. The NRC received 11 comments before the 
comment period ended on April 26, 2002, and three additional comments 
by May 24, 2002, for a total of 14 comments that were considered in 
this fee rulemaking. Many of the commenters raised similar issues. As 
such, these comments have been grouped according to similar issues, and 
are addressed in a collective response.
    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 indicated that more 
detailed information would allow stakeholders to provide more effective 
feedback on the efficiency of NRC's regulatory activities and would 
propel the Commission to exercise its authority to promote increased 
fiscal responsibility. The commenter acknowledged the ability to access 
the agency work papers through the NRC's Public Document Room or by 
using the Agencywide Documents Access and Management System (ADAMS), 
but finds this supporting material to be indecipherable.
    Response. Consistent with the requirements of OBRA-90, as amended, 
the purpose of this rulemaking is to establish fees necessary to 
recover 96 percent of the NRC's FY 2002 budget authority, less the 
amounts appropriated from the NWF and the General Fund, from the 
various classes of licensees. 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 since the NRC's 
budget and the manner in which the NRC carries out its activities are 
outside the scope of this rulemaking. The proposed rule described the 
types of activities included in the proposed fees and explained how the 
fees were calculated to recover the budgeted costs

[[Page 42613]]

for those activities. Therefore, the NRC believes that ample 
information was available on which to base constructive comments on the 
proposed revisions to parts 170 and 171.
    The NRC acknowledges that the work papers supporting the proposed 
fee rule contain very detailed information. The work papers reflect the 
complexity of the fee calculation process that is necessary to ensure 
that the fees are fair and equitable to all licensees. The work papers 
show the total budgeted FTE and contract costs at the planned 
accomplishment level for each activity. The work papers also include 
extensive information detailing the allocation of the budgeted costs 
for each planned accomplishment within each program of each strategic 
arena to the various classes of licenses.
    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 17, ``Budget Estimates and Performance Plan, Fiscal 
Year 2002 (April 2001),'' which discusses the NRC's budget for FY 2002, 
including the activities to be performed in each strategic arena. The 
NRC also has made this document available on its public Web site at 
http://www.nrc.gov/who-we-are/plans.html. 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. Additionally, the 
contacts listed in the proposed fee rule were available during the 
public comment period to answer any questions that commenters had on 
the development of the proposed fees. No inquiries of this nature were 
received during the comment period.

B. Specific Part 170 Issues

1. Hourly Rates
    Comment. Several commenters opposed the $152 proposed hourly rate 
for the materials program. The commenters stated that the hourly rate 
is excessive, is more than the professional hourly rates charged by 
national consulting firms, and is counterproductive to NRC's apparent 
efforts to reduce the total fee burden to uranium recovery licensees.
    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 hourly 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, utilities, supplies, and payroll 
and human resources staffs.
    The increase in the hourly rates is primarily due to the 
Government-wide pay increase in FY 2002. 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. 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 $156, compared to $150 in FY 
2001, and the professional hourly rate for the materials program is 
$152, compared to $144 in FY 2001. 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. Fee Exemptions for Special Projects
    Comment. Five comments were received opposing the NRC's proposed 
modifications to the fee waiver provisions for special projects, most 
of which criticized the proposed rule for the anticipated chilling 
effect the ``primary beneficiary'' criterion will have on encouraging 
and supporting ``ground-breaking'' actions by licensees. These 
commenters believe that the proposed revisions would discourage 
cooperative efforts between the NRC and industry to address safety 
issues and opportunities for generic regulatory improvement. Some 
commenters asserted that the changes are inconsistent with the NRC's 
goals to improve regulatory efficiency and effectiveness, to reduce 
unnecessary burden on stakeholders, and to promote increased realism in 
regulatory decision-making. Several commenters stated that without some 
relief from fees, there is no incentive for a licensee to take the lead 
on an industry initiative that may contribute to generic regulatory 
activity and which may serve as a model for other licensees. Two 
commenters stated that relocating the fee waiver requirements to 10 CFR 
170.11(a)(1) adds a degree of formality to the process and that such 
formality costs the industry and the NRC resources and time. The 
commenters urged the NRC to revise the provisions to encourage industry 
to work cooperatively with the NRC on generic regulatory improvements 
or efforts.
    As part of its commentary on what it views as the evolution of the 
fee waiver provision, one commenter suggested that the NRC's FY 2001 
fee rule change adding the word ``NRC's'' in the third fee waiver 
criteria was an attempt to distinguish between waiver requests based on 
the industry's future use of the documents, in contrast to reports 
being submitted, reviewed, and approved for the purpose of NRC's 
generic regulatory improvements. The commenter asserted that the 
proposed change for the FY 2002 fee rule goes further in establishing 
barriers to unsolicited industry proposals for generic regulatory 
improvements. The commenter claimed that these interpretations are 
inconsistent with the history of the fee rule and many generic industry 
initiatives reviewed by NRC without a fee, prior to 1999. This 
commenter predicted that the proposed change will discourage industry 
initiatives and penalize self-generated industry-wide generic 
initiatives, which it contended is inconsistent with Commission and NRC 
management encouragement of industry initiatives. The commenter pointed 
to SECY-00-0016, ``Industry Initiatives in the Regulatory Process,'' in 
which the staff discussed how industry initiatives would save resources 
and improve timeliness of actions. The commenter also referred to the 
Commission's direction to the staff, in response to SECY-96-062, ``to 
evaluate, on a case-by-case basis, initiatives proposing further NRC 
reliance on industry activities as an alternative to NRC activities.''
    The same commenter stated that it is difficult to determine if an 
industry report will be used for generic regulatory improvement prior 
to NRC review. The commenter also complained that its intended purpose 
stated at the time of submittal, and associated fee waiver requests, 
typically have been rejected by the NRC's Chief Financial Officer 
(CFO), making it ``difficult for the staff to make an informed decision 
as to the intended use of the submittal.'' The commenter goes on to say 
that the NRC staff is reluctant to discuss fee or usage matters with 
the commenter, although these discussions are needed to assist the 
staff in making a recommendation on the fee waiver.
    The commenter also disagreed with basing the fee waiver on which 
organization--the NRC or industry--is the primary beneficiary. The 
commenter stated that waiving the fees for generic industry proposals 
that facilitate regulatory improvement will encourage

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initiatives which benefit both industry and NRC, pointing to the NRC's 
Strategic Performance Goals of reducing unnecessary regulatory burden 
and achieving greater realism in regulatory decisions. The commenter 
argued that the NRC should not impose a policy that encourages industry 
to ignore the best science and instead tell the NRC staff what it wants 
to hear in order to obtain a waiver of review fees.
    The commenter argued that NRC's budget is not enhanced by imposing 
part 170 fees for services, since whatever is not recovered through 
part 170 fees will be made up by charging part 171 annual fees. This 
suggests that there is no budgetary imperative for charging part 170 
fees (sought to be relieved by these fee waiver requests), rather than 
allowing the costs to be absorbed through the imposition of annual 
fees. In the commenter's words, ``granting or denying a waiver is 
`revenue neutral','' however, the commenter stated that fees for 
services present a serious budgetary problem for industry 
organizations. According to the commenter, these organizations operate 
on tight budgets that do not normally cover NRC review fees. Imposition 
of these fees reduces the amount of research work the commenter's 
organization can do to support the membership, and slows down efforts 
on risk informed initiatives.
    To address these concerns, the commenter recommended the fee waiver 
provision be revised so it applies not only to those submittals 
requested by the NRC, but also to those proposals for generic 
regulatory improvements submitted by industry organizations 
representing all licensees, including those which are unsolicited and 
need NRC review, and are supported by the membership as a generic 
submittal. The commenter stated it would ensure that its fee waiver 
requests are reviewed and supported by its members, and that its 
membership agrees to NRC cost recovery for these reviews through part 
171 annual fees.
    Response. As previously stated in the proposed fee rule, the 
modifications to the fee waiver criteria do not represent a change in 
NRC policy. Rather, the changes are clarifications intended to assist 
applicants in determining in advance whether their submittals are 
likely to meet the fee waiver criteria.
    The NRC has consistently applied its policy of waiving the part 170 
fees for special projects submitted to the NRC for the purpose of 
supporting NRC's generic regulatory improvements, and assessing part 
170 fees for the review of special projects that are submitted for 
other purposes, including those that support industry generic 
improvements. Part 170 fees are based on the provisions of the 
Independent Offices Appropriations Act of 1952 (IOAA). This statute 
allows Federal agencies to assess fees to recover costs incurred in 
providing special benefits to identifiable recipients. While the NRC 
has the authority to grant waivers from the part 170 fee requirements, 
fee exemptions are granted very sparingly in order to meet the 
requirements of OBRA-90 that almost all of the agency's budget 
authority be recovered through IOAA and annual fees.
    The NRC finds no justification for granting a part 170 fee waiver 
to an industry organization seeking an NRC approval of an industry 
initiative, unless the initiative will be used for NRC's generic 
regulatory improvements, and the initiative was submitted specifically 
for that purpose. In the latter case, the NRC's review and approval is 
part of the process of developing the NRC's generic regulatory program, 
and therefore the review activities are similar to other NRC generic 
regulatory activities whose costs are recovered through part 171 annual 
fees. Conversely, reviews of submittals that are for the industry's 
generic improvements or use are considered services provided to 
identifiable recipients. These are subject to IOAA fees, under 
applicable caselaw. See, e.g., Mississippi Power & Light Co. v. U.S. 
Nuclear Regulatory Commission, 601 F. 2d 233 (C.A. 5, 1979), cert. den. 
444 U.S. 1102 (1980). Further, the ``primary beneficiary'' concept is 
solidly rooted in pertinent caselaw, which authorizes the assessment of 
fees for specific services/benefits against identifiable beneficiaries, 
even if the service confers a benefit beyond that, i.e., upon the 
general public as well. Engine Mfrs. Ass'n v. E.P.A., 20 F. 3d 1177 
(C.A.D.C. 1994).
    To say that the CFO's rejection of the submitter's stated purpose 
and the related fee waiver request ``makes it difficult for the staff 
to make an informed decision as to the intended use of the submittal'' 
reverses the proper order of things. The staff must provide technical 
advice and recommendations to assist the CFO in making the appropriate 
determination of fee waiver entitlement. The submittal, and thus, 
potential for fee waiver, is to be weighed on the merits and how it 
relates to the NRC's regulatory initiatives, from which fee 
considerations flow, not the other way around. Moreover, while the 
program staff certainly should be able to communicate freely with the 
submitter on the technical merits of the submittal, it is appropriate 
for the program staff to be reluctant to discuss fee matters with the 
submitter because that is not the program staff's area of expertise. 
Fee issues and discussions are the responsibility of the CFO's staff; 
and therefore, to avoid confusion and misunderstanding, fee matters 
should be discussed with the CFO's staff instead of the program staff. 
On the other hand, the submitter is encouraged to have discussions with 
the technical staff as to those submissions that support the NRC's 
generic regulatory improvements or efforts. Submitters have a 
legitimate interest in advance information about the fee implications 
that will attend a submission, and interactions with both technical and 
CFO staff on relevant matters are fully appropriate.
    The NRC has consistently declined to base its fees on the financial 
status of NRC licensees and applicants, except the impacts of the fees 
on small entities the NRC is required to consider under the provisions 
of the Regulatory Flexibility Act. Therefore, the NRC does not base fee 
waivers on the budgetary constraints of those requesting NRC services. 
Further, the determination of whether a fee waiver should be granted is 
independent of whether there is willingness of the organization's 
members to pay the costs through part 171 fees. If the organization's 
members are willing to pay the costs of NRC's fees, the organization 
can seek reimbursement from its members. The IOAA prescribes the 
standards for charging fees to identifiable recipients for services or 
things of value, and there is nothing in the statute that authorizes 
fee-shifting through consensus.
    For this reason, it is also unpersuasive to argue that the NRC 
should liberally grant part 170 fee waivers based on ``revenue 
neutrality.'' Under that theory, the NRC need never charge part 170 
fees, because whatever is not recouped there will be recovered through 
part 171 fees. Although the budgeted costs still would be recovered 
regardless of how the charges are assessed, that is not the standard 
for fee assessment under the IOAA, nor should it be for purposes of 
granting or denying fee waiver requests.
    Moreover the NRC's fee schedule is not an incentive program. Fees 
are established in accordance with applicable legal requirements and 
not meant to be either inducements or disincentives. Rather, they are 
established to recover the NRC's costs, as required by law. Further, 
the assessment of part 170 fees for special projects is fully 
consistent with the NRC's policies on industry initiatives. In SECY 97-
303, ``The Role of Industry (DSI-13) and Use of Industry Initiatives,'' 
the staff stated that fees will

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be assessed unless the fee waiver criteria is met. As always, under the 
fee waiver criteria, NRC will waive the review fees for special 
projects submitted for the purpose of supporting NRC's regulatory 
improvements as long as the NRC staff agrees that it will be used by 
the NRC in developing or improving its regulatory framework. Not every 
submittal results in a safety improvement, burden reduction, or 
improved process. The NRC encourages any special project applicant who 
believes that its proposal will help improve NRC's regulatory process 
to discuss its proposal with the cognizant NRC program office staff 
prior to requesting a fee waiver from the Chief Financial Officer.
    With regard to fee waivers for ``ground breaking'' licensing 
actions, the fee exemption provision for special projects does not 
apply to licensing actions. As defined in Sec. 170.3, special projects 
are those requests submitted to the NRC for review for which fees are 
not otherwise specified in part 170. Part 170 specifies fees for 
licensing actions, therefore, first-of-a-kind licensing actions are not 
special projects for purposes of part 170. The waiver criteria that 
were previously in footnote 4 of Sec. 170.21 and footnote 5 of 
Sec. 170.31, which in this final rule the NRC is moving to Sec. 170.11, 
have always specifically referred to special projects (see 
Sec. 170.11(a)(1)). The NRC is not changing its practice for exemption 
requests for first-of-a-kind licensing actions and will continue to 
address such exemption requests on a case-by-case basis under 
Sec. 170.11(b).
    The NRC believes the modifications to the fee waiver criteria 
language have the potential to save both NRC and industry resources 
because the industry will have more definitive guidelines on the types 
of submission that will be granted a fee waiver. The NRC believes these 
clarifications will better inform the industry, so they will not 
request fee waivers for those types of special projects which do not 
meet the waiver criteria. Further, it is unclear how relocating the fee 
waiver criteria to the exemption section of part 170 adds any formality 
to the process or how such purported formality will cost the industry 
or NRC resources and time as some commenters contend. Moving the 
criteria neither changes the process nor enhances its legal status. The 
NRC believes that it is more appropriate to have the fee exemption 
provisions for special projects with the existing part 170 fee 
exemption provisions.
    The NRC, in this final rule, is revising the fee waiver criteria to 
clarify the fee exemption provisions. In addition, the exemption 
section of Sec. 170.11 is being revised to include the language that 
was previously located in footnote 4 to Sec. 170.21 and footnote 5 to 
Sec. 170.31.
3. Invoice Information
    Comment. One commenter asserted that NRC's invoices lack adequate 
explanations of the work done by NRC staff and NRC contractors. The 
commenter 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, the commenter contended that the change would serve the NRC, 
its licensees, and the public well.
    Response. As the NRC has stated in the past, 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 the Human Resources Management 
System (HRMS), 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 HRMS, 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. Additionally, the 
inspection report number is provided on inspection fee bills. The work 
effort codes are the only available data describing the work performed, 
and they are the lowest level of detail available in HRMS. 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.
    For contractor costs billed to uranium recovery licensees under 
part 170, the NRC includes copies of the contractors' summary cost 
reports with the invoices. Upon specific request, the NRC will send all 
available information in support of the bill to any licensee or 
applicant who does not understand the charges or needs more information 
in order to understand the bill. This has always been an option 
available to licensees and applicants who feel they need more 
information on the costs billed.
    The NRC does not plan to develop new 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. Mixed Oxide Fuel (MOX) Contested Hearing Costs
    Comment. One nuclear industry group commented that the NRC's 
proposal to assess MOX contested hearing costs to the fuel facility 
class is unfair, and that it is a violation of OBRA-90 to charge 
licensees for an agency activity or program from which the licensees 
receive no benefit. In this case, the commenter asserts that fuel 
facility licensees should not be responsible for bearing the costs of 
hearings associated with MOX fabrication because this process has no 
relation to the NRC's regulatory services from which fuel facility 
licensees obtain a benefit. Specifically, the MOX program is a Federal 
government initiative to ensure national security through the 
disposition of plutonium stockpiles. The commenter further adds that 
the beneficiaries of the MOX program are the Federal government and the 
nation's citizenry because it will aid in the reduction of weapons-
grade plutonium. As such, the commenter contends that commercial fuel 
facility licensees should not have to subsidize the Federal 
government's efforts to ensure national security, and that such costs 
should be appropriated through the General Fund and removed from the 
NRC fee base. The commenter also states that NRC distributes hearing 
costs for license applications among the affected class of licensees, 
and to the extent that they benefit the entire class, this approach is 
logical. However, the commenter further indicates that hearing costs 
related to the disposition of plutonium under the MOX program do not 
meet the threshold of benefitting other licensees in the class, and 
therefore should not be assessed as such. The commenter makes a final 
point about the NRC's fee allocation methodology for hearing costs 
being problematic in that when applied to certain types of licensees 
whose numbers are few, this could conceivably lead to a competitor 
having to bear the hearing costs of its competition during NRC 
licensing proceedings.

[[Page 42616]]

    Response. OBRA-90 mandates that the NRC collect IOAA (part 170) and 
annual fees (part 171) to recover almost all of its budgeted costs, 
less the amounts appropriated from the NWF. Therefore, the NRC must 
recover hearing costs through part 170 fees for services or through 
part 171 annual fees. OBRA-90 also requires that, to the maximum extent 
practicable, the annual charges shall have a reasonable relationship to 
the cost of providing regulatory services. The NRC has a longstanding 
policy of charging the affected applicant or licensee part 170 fees for 
uncontested hearings (i.e., those required as part of the licensing 
process), and not charging part 170 fees for contested hearings. As a 
result, the costs for contested hearings are recovered through part 171 
annual fees assessed to the affected class of licensee. This policy has 
been reconfirmed in the statement of considerations and in responses to 
comments received from the public during many past fee rulemakings, in 
court pleadings, and in an NRC report to Congress on fees.
    The Commission believes there is merit to the comment regarding 
assessing annual fees for the MOX contested hearing since the hearing 
is related to a U.S. Government national security initiative. Thus, as 
a change to the proposed rule, the Commission will not impose the 
entire budget of the MOX contested license proceeding for FY 2002 on 
the fuel facility licensee class. This proceeding pertains to the 
license application for MOX fuel fabrication facility, a U.S. 
Government national security initiative to dispose of plutonium 
stockpiles. Since a rulemaking to propose recovery of MOX and other 
U.S. Government national security initiative contested hearing costs 
through part 170 fees could not be promulgated and made effective 
before FY 2003, the Commission is making an interim change for FY 2002 
only. This change will recover the $433,000 budgeted for MOX contested 
hearing activities through part 171 annual fees assessed to all classes 
of licensees, based on their respective percentages of the NRC's 
budget. As a result, the amount assessed to the fuel facility class has 
decreased by approximately $408,000, while the total amount assessed to 
most of the other classes of licensees has increased correspondingly. 
Thus, the amounts assessed to each of the affected classes for the FY 
2002 MOX contested hearing costs are as follows: operating reactors--
$345,000; spent fuel storage/reactor decommissioning--$33,000; non-
power reactors--$400; fuel facility--$25,000; materials users--$19,000; 
transportation--$5000; rare earth facilities--$1000; and uranium 
recovery--$4000. For example, this equates to approximately $4,000 per 
licensee in the power reactor class, which is obtained by dividing the 
$345,000 by the 104 licensees (due to rounding, dollar amounts are not 
exact). For the other affected classes of licensees and their 
respective fee categories, the increases or decreases in annual fee 
amounts for individual licensees, due to assessment of MOX contested 
hearing costs, are set forth in the agency work papers. Due to 
rounding, the annual fees for certain individual licensees in some of 
the affected classes did not change.
    The Commission intends, in the near future, to issue a proposed 
rule for public comment that would recover the cost for contested 
hearings involving U.S. Government national security initiatives 
through part 170 fees assessed to the affected applicant or licensee. 
The NRC plans to conduct this rulemaking so that any proposed change, 
if adopted in a final rule, would be effective in early FY 2003.
    With regard to the commenter's recommendation for the NRC to obtain 
separate appropriations from the General Fund to cover the MOX 
contested hearing costs, this is not practicable for FY 2002. The 
Congress has already passed the FY 2002 Energy and Water Development 
Appropriations Act, and the NRC is well into implementing its budget 
under this authority. Furthermore, the commenter is incorrect about how 
NRC hearing fees are assessed to licensees. As discussed above, the NRC 
assesses the specific applicant or licensee part 170 fees for the costs 
of uncontested hearings that are part of the required license 
application process. However, for contested hearings, the NRC assesses 
the affected class of licensees the associated costs of the hearing 
through part 171 annual fees. Similarly, the commenter's point about 
one licensee conceivably subsidizing the costs of a competitor's 
licensing hearing is incorrect for the aforementioned reason. Costs 
associated with a contested hearing are not assessed to a specific 
category of licensee as mentioned by the commenter, but instead are 
assessed to the entire affected class of licensees. As stated in the 
NRC fee schedules, some classes of licensees consist of multiple fee 
categories.
2. Annual Fees for Materials Users, Including Small Entities
    Comment. Two nuclear density gauge users and one manufacturer 
commented that their fees are too high, and create a significant 
financial burden on small business owners. One commenter stated that 
the combined license application fee and annual fee for this category 
equals 80 percent of the cost of the gauge device. The commenter 
further asserted that Agreement States' fees average about one-fourth 
of NRC's proposed fees, causing an unfair disparity in the industry. 
Another commenter indicated only a small fraction of the company's 
revenues was generated from NRC licensed activities, but that it was 
essential to maintain this segment of business in order to retain other 
contracts not related to its NRC license. Therefore, the commenter 
contended that only income generated from NRC licensed activities 
should be considered when establishing fees. With respect to the NRC's 
upper fee level for small entities, the third commenter stated that the 
broad revenue range encompassing $350,000 to $5,000,000 in gross annual 
receipts tends to favor larger firms while burdening smaller 
businesses. Thus, the NRC should consider adding more tiers for small 
businesses to reduce the license fee burden on smaller entities.
    Response. The NRC has responded to similar comments in previous fee 
rulemakings, both from materials users and other licensees, regarding 
the impact of fees on industry. In summary, the NRC has stated since FY 
1991, when the 100 percent fee recovery requirement was first 
implemented, that it recognizes the assessment of fees to recover the 
agency's costs may result in a substantial financial hardship for some 
licensees. However, consistent with the OBRA-90 requirement that annual 
fees must have, to the maximum extent practicable, a reasonable 
relationship to the cost of providing regulatory services, the annual 
fees for each class of license, including materials users, reflect the 
NRC's budgeted cost of its regulatory services to the class. The NRC 
determined the budgeted costs to be allocated to each class of licensee 
through a comprehensive review of every planned accomplishment in each 
of the agency's major program areas. Furthermore, a reduction in the 
fees assessed to one class of licensees would require a corresponding 
increase in the fees assessed to other classes. Accordingly, the NRC 
has not based its 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 to address by law.

[[Page 42617]]

    Based on the provisions of the Regulatory Flexibility Act (RFA), 
the NRC provides reduced annual fees for licensees who qualify as small 
entities under the NRC's size standards. The materials users class has 
the most licensees who qualify for these reduced fees of any class. As 
such, the materials user class receives the largest amount of annual 
fee reductions of any class. The FY 2002 total estimated fee amount 
that will not be collected from licensees who pay reduced annual fees 
based on their small entity status is approximately $4.5 million, which 
must be collected from other NRC licensees in the form of a surcharge. 
Further reductions in fees for materials users would create an 
additional fee burden on other licensees, thus raising fairness and 
equity concerns.
    As stated in 10 CFR 2.810, NRC size standards, the NRC uses the 
Small Business Administration's (SBA) definition of receipts. Based on 
the SBA definition, revenue from all sources, not solely receipts from 
NRC licensed activities, is considered in determining whether a 
licensee qualifies as a small entity under the NRC's revenue-based size 
standards.
    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 revenues. As noted 
previously, reductions in fees for small entities must be paid by other 
NRC licensees in order to comply with the OBRA-90 requirement to 
recover most of the agency's budget authority through fees. While 
establishing additional tiers would provide further fee relief to some 
small entities, it would result in an increase of the small entity 
subsidy paid by other licensees. The NRC must maintain a reasonable 
balance between the provisions of OBRA-90 and the RFA requirement for 
the agency to examine ways to minimize significant impacts that its 
rules may have on a substantial number of small entities. Therefore, 
the NRC is not providing any modification to its small entity fee 
structure, nor any further reduction in annual fees beyond that already 
provided for small entities.
3. Annual Fees for Uranium Recovery Licensees
    Comment. Two uranium recovery industry groups and one licensee 
commented on the FY 2002 proposed fee rule. All unanimously supported 
the NRC's revised methodology for allocating uranium recovery budgeted 
costs, which results in reduced annual fees for the commercial uranium 
recovery licensees. However, despite the proposed reductions, these 
commenters felt that the NRC's annual fees are excessive and represent 
a tremendous burden to the uranium recovery industry, which is already 
experiencing a severe economic downturn because of the depressed 
uranium market. The commenters all believe there is excessive 
regulatory oversight by the NRC of the uranium recovery industry, 
especially in light of the NRC's performance-based licensing approach, 
which they contend should result in a reduced regulatory effort. Thus, 
the commenters assert that the NRC should consider a more balanced 
approach to uranium recovery regulation, resulting in less regulatory 
oversight and lower costs. Additionally, the commenters stated that the 
NRC has failed to adequately deal with the issue of decreasing numbers 
of uranium recovery licensees, or charging annual fees to licensees 
whose facilities are in standby status. Specifically, as more states 
become Agreement States and/or additional sites are decommissioned, the 
number of NRC regulated sites continues to decline, leaving fewer 
licensees to pay a larger share of the NRC's regulatory costs. As such, 
the commenters argue that there is a lack of reasonable relationship 
between annual fees and regulatory services rendered by the NRC. One 
commenter indicated that the NRC's policy of charging annual fees to 
licensees in standby status, who require minimal oversight, is not 
commensurate with the benefit of holding a license, and unfairly 
penalizes those licensees who are waiting for market conditions to 
improve before they become operational again.
    These commenters also supported the revised Office of Nuclear 
Material Safety and Safeguards' policy for assigning Project Managers. 
Two of the commenters stated that the change benefits licensees in a 
standby mode because they do not generally use much of the Project 
Manager's time. The third commenter stated that recovering more of 
these costs through annual fees is more equitable because the costs are 
spread across a range of licensees.
    Response. The NRC has responded to the concerns raised by these 
commenters in several previous fee rulemakings. The NRC acknowledges 
that the uranium recovery industry is experiencing an economic downturn 
in the market for uranium. However, since FY 1991, when the 100 percent 
fee recovery requirement was enacted under OBRA-90, the Commission has 
consistently taken the position that it will not consider economic 
factors when establishing fees, except for reduced fees provided for 
small entities based on the provisions of the RFA. To grant fee relief 
to the uranium recovery industry on the basis of its economic 
conditions or business practices (e.g., a licensee's decision whether 
to remain operational or go into a standby status) could set an 
untenable precedent for the NRC with the potential to unravel the 
stability and viability of the entire fee system. Not only would other 
classes of licenses be required to subsidize the uranium recovery 
industry through increased fees, but other categories of licensees may 
also request similar treatment based on analogous economic 
considerations. Thus, it would be difficult to develop a rationale for 
waiving the fees for uranium recovery licensees while denying similar 
requests from other NRC licensees, such as well loggers or licensed 
medical facilities whose industries may also be experiencing economic 
downturns.
    The NRC has conducted numerous analyses concerning the issue of 
decreasing numbers of licensees, and the effect this has on annual 
fees. Although a decreasing licensee base is only one of several 
factors affecting annual fees, it presents a clear dilemma for both the 
uranium recovery group in its efforts to maintain a viable industry and 
the NRC which must recoup its budgeted costs from the licensees it 
regulates. In the wide range of scenarios the NRC evaluated during its 
analyses, most potential remedies to this problem involved establishing 
arbitrary fee caps or thresholds for certain classes of licensees. 
Other potential solutions involved combining fee categories. As noted 
previously, given the requirements of OBRA-90, as amended, to collect 
most of NRC's budget authority through fees, failure to fully recover 
costs from certain classes of licensees due to caps or thresholds would 
result in other classes of licensees bearing these costs. Combining fee 
categories would also have the potential to increase the annual fees 
for certain licensees in the new combined category to cover part of the 
cost for the licensees whose fees were reduced by this action. The NRC 
considers that alternatives involving caps or thresholds, and combining 
fee categories, raise fairness and equity concerns. As such, the 
Commission has not adopted any of these approaches. Also, the NRC notes 
that commenters opposed a similarly postulated 50 percent cap on annual 
fee increases in response to this issue in the FY 1999 proposed fee 
rule. Thus, the NRC concluded that the most equitable option under the 
agency's current fee collection mandate was to maintain its existing 
fee policy, but continue to seek

[[Page 42618]]

cost efficiencies through its annual reviews conducted as part of the 
budget process.
    The issue of charging licensees in standby status has been 
discussed in many previous fee rules. In summary, the Commission has 
stated that the existing policy of assessing annual fees based on 
whether a licensee holds a valid NRC license authorizing possession and 
use of nuclear material, irrespective of the licensee's intent to 
operate its facility or remain in standby, represents the fairest 
option available under current legislation. This policy is based on the 
premise that the benefit the NRC provides a licensee is the authority 
to use licensed material. Whether or not a licensee decides to exercise 
this authority is a business decision outside the realm of NRC 
jurisdiction. Additionally, 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. Furthermore, based on fee recovery requirements of OBRA-
90, reducing the number of licensees paying annual fees by granting 
relief for licensees in a standby status would ultimately increase the 
annual fees assessed to the remaining licensees. In effect, providing 
such fee relief would exacerbate the existing condition of decreasing 
numbers of licensees, which is an ongoing concern of the commenters. 
Nonetheless, the Commission will reexamine this issue prior to 
publishing the FY 2003 fee rule.
    In this rulemaking, the Commission has adopted the proposed revised 
methodology for allocating uranium recovery budgeted costs. Moreover, 
the FY 2002 annual fees reflect the Office of Nuclear Material Safety 
and Safeguard's revised policy for assigning PMs. As explained 
previously, part 171 annual fees for the uranium recovery class 
includes a prorated share of the FY 2002 budgeted costs for the MOX 
contested hearing.
4. Annual Fees for Power Reactor Licensees
    Comment. Three commenters addressed the proposed annual fees for 
the power reactor class. Two of these commenters agreed with the NRC's 
policy, clarified in the proposed fee rule, of charging annual fees on 
a per license basis, and not on a reactor-unit basis. However, 
according to one of the commenters on this issue, this approach would 
not be equitable if the NRC assesses two separate annual fees to a dual 
unit standard reactor facility, such as those certified under part 52, 
Appendix C, if the sum of these fees exceeded the annual fee charged to 
multi-unit reactor modular facilities, providing these modular 
facilities had a single license. The other commenter on this subject 
asserts the NRC should make it clear in the FY 2002 final rule that the 
agency's underlying intent is to assess multi-unit reactor modular 
facilities a single annual fee, regardless of whether the licensee 
holds a single or multiple combined operating license(s). One commenter 
stated the industry objects to the NRC's approach of allocating generic 
costs through part 171, indicating that the power reactor class of 
licensees bear a large share of the annual fee burden.
    Response. In the proposed fee rule, the NRC stated its intent to 
revise Sec. 171.15(a) to clarify that annual fees are assessed on a per 
license basis, and not for each reactor unit. The NRC reiterates that 
this clarification is not a change to its existing policy of charging 
annual fees for each license. Furthermore, the NRC is not proposing a 
specific annual fee category or amount for part 52 combined licenses 
because there are no such existing licenses at this time. The NRC's 
intent when proposing these revisions was to make potential applicants 
for part 52 combined licenses aware that they would be subject to 
annual fees. At this time, the NRC does not have the information 
required to make a decision with respect to assessing annual fees for 
part 52 combined licenses for multi-unit modular reactors. In the 
future, when the NRC determines its fee structure for part 52 combined 
licenses, the fees will be assessed in a fair and equitable manner, and 
to the maximum extent practicable, will reflect a reasonable 
relationship to the cost of the regulatory services provided.
    The part 171 power reactor annual fees are established to recover 
the costs for generic activities related to power reactors such as 
rulemakings and guidance development, as well as costs for other 
activities for the class not recovered through part 170 fees (e.g., 
allegations, contested hearings, special projects for which fee waivers 
are granted, orders issued under 10 CFR 2.202 or responses to such 
orders, etc.). The final annual fees this year for power reactors also 
include a prorated share of the FY 2002 budgeted MOX contested hearing 
costs as previously explained. The annual fees for each class also 
includes a share of the total surcharge costs to be recovered through 
annual fees assessed to NRC licensees. The surcharge is established to 
recover the costs for NRC activities that are not attributable to an 
existing NRC licensee or class of licensee, activities that are exempt 
from part 170 fees based on law or Commission policy, and those 
activities that support NRC operating licensees and others. The 
surcharge is required in order for the NRC to meet the statutory 
requirement of OBRA-90, as amended, that almost all of the NRC's budget 
be recovered through IOAA and annual fees. To address fairness and 
equity concerns raised by the NRC related to charging NRC license 
holders for these expenses that do not directly benefit them, the FY 
2001 Energy and Water Development Appropriations Act amended OBRA-90 to 
decrease the NRC's fee recovery amount by two percent per year 
beginning in FY 2001, until the fee recovery amount is 90 percent in FY 
2005. Thus, it is anticipated that the necessity for the NRC to charge 
licensees for costs that are not directly related to them or to their 
class will be eliminated, or almost eliminated, by FY 2005.
    The agency work papers supporting both the proposed and final fee 
rules show the budgeted costs for each activity at the NRC's planned 
accomplishment level, and the classes of licenses to which these costs 
are allocated. Furthermore, the work papers show by class the total 
costs allocated, and the estimated part 170 collections. The annual 
fees are established to recover the difference between the NRC's total 
recoverable budgeted costs (less the Nuclear Waste Fund and General 
Fund) and the estimated part 170 collections, in accordance with OBRA-
90, as amended.
5. Annual Fees for Fuel Facilities Licensees
    Comment. One comment was received opposing the NRC's proposed 
annual fee increase for the uranium hexafluoride conversion category 
within the fuel facility class, stating that these fees should remain 
the same as the previous year. The commenter maintained that its 
conversion facility, which is the only one in the United States, has 
been unprofitable for the last three years, asserting this is in part 
due to the U.S. Government's uranium policies. The commenter added that 
the reduced worldwide demand for uranium has jeopardized the viability 
of the facility. Additionally, the commenter contended that the NRC's 
requirement for additional security upgrades for its facility since the 
September 11, 2001, terrorist attacks, placed additional financial 
strains on the company. Finally, the commenter indicated that the costs 
incurred by the company as a result of NRC fees and security 
requirements will significantly impact the viability of the facility.

[[Page 42619]]

    Response. The NRC has addressed similar issues from other 
commenters regarding the impact of fees on industry, both in this fee 
rule and in previous years' fee rules. As earlier stated, consistent 
with the requirements of OBRA-90, as amended, the NRC must collect most 
of its budgeted costs through assessment of fees. These budgeted costs 
are the resources necessary for the NRC to execute its regulatory 
oversight of the various licensee classes. The NRC determined the 
budgeted costs to be allocated to each class of licensee through a 
comprehensive review of every planned accomplishment in each of the 
agency's major program areas. The annual fees for the various 
categories of licensees in the fuel facility class are based on the 
budgeted costs that must be recovered from the class to meet the 
requirements of OBRA-90, as amended. Although this may create a 
financial hardship for some licensees, a reduction in the fees assessed 
to one class or category of licensees would require a corresponding 
increase in the fees assessed to other licensees. Consequently, the NRC 
has not based its fees on licensees' economic status, market 
conditions, or the ability of licensees to pass through the costs to 
its customers.
    The final annual fees this year for the fuel facility class, 
including the uranium hexafluoride conversion category of licensees, 
have been adjusted to reflect the Commission's decision with respect to 
recovering FY 2002 costs for the MOX contested hearing. Specifically, 
the FY 2002 budgeted costs for the MOX contested hearing will be 
assessed to all classes of licensees in their annual fees. In the 
proposed fee rule, 100 percent of these costs were included in the 
annual fees for the fuel facility class alone. As a result of this 
change, the final FY 2002 annual fees for the fuel facility licensees 
are less than the proposed annual fees.

C. Other Issues

1. NRC Budget
    Comment. One commenter stated that the NRC's overall budget should 
be reduced by more efficient use of resources resulting from the 
agency's revised regulatory approach. Specifically, under the NRC's 
reactor oversight program, there has been a reduction in the number of 
regional initiative inspections, yet these reductions are not accounted 
for in the proposed fees. Moreover, according to the commenter, 
successful implementation of the reactor oversight program provides the 
NRC an opportunity to reallocate existing resources to meet the 
challenges of risk-informing regulations and licensing new reactor 
designs. The commenter indicated that the NRC should consider 
consolidating the regional offices in the near term, and eliminating 
them altogether in the longer term, in order to save agency resources. 
Another commenter stated that there should be a decrease in fees based 
on changes in the NRC's regulatory approach and industry's excellent 
performance.
    Response. As noted in several previous fee rules, the NRC's budget 
and the manner in which the agency implements its programs are not 
within the scope of this rulemaking. Therefore, this final rule does 
not address comments concerning the NRC's budget or the use of its 
resources. The NRC's budget is 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 execute its statutory obligations. 
In compliance with OBRA-90, as amended, the fees are established to 
recover the required percentage of the approved budget.

III. Final Action

    The NRC is amending its licensing, inspection, and annual fees to 
recover approximately 96 percent of its FY 2002 budget authority, 
including the budget authority for its Office of the Inspector General, 
less the appropriations received from the NWF and the General Fund. The 
NRC's total budget authority for FY 2002 is $559.1 million, of which 
approximately $23.7 million has been appropriated from the NWF. In 
addition, $36.0 million has been appropriated from the General Fund for 
activities related to homeland security. Based on the 96 percent fee 
recovery requirement, the NRC must collect approximately $479.5 million 
in FY 2002 through part 170 licensing and inspection fees, part 171 
annual fees, and other offsetting receipts. The total amount to be 
recovered through fees and other offsetting receipts for FY 2002 is 
$26.2 million more than the amount estimated for recovery in FY 2001.
    The FY 2002 fee recovery amount is reduced by a $1.7 million 
carryover from additional collections in FY 2001 that were 
unanticipated at the time the final FY 2001 fee rule was published. 
This leaves approximately $477.8 million to be recovered in FY 2002 
through part 170 licensing and inspection fees, part 171 annual fees, 
and other offsetting receipts.
    The NRC estimates that approximately $124.0 million will be 
recovered in FY 2002 from part 170 fees and other offsetting receipts. 
For FY 2002, the NRC also estimates a net adjustment of approximately 
$8.2 million for FY 2002 invoices that the NRC estimates will not be 
paid during the fiscal year, and for payments received in FY 2002 for 
FY 2001 invoices. The remaining $345.6 million will be recovered 
through the part 171 annual fees, compared to $331.6 million for FY 
2001.
    Table I summarizes the budget and fee recovery amounts for FY 2002. 
Due to rounding, adding the individual numbers in the table may result 
in a total that is slightly different than the one shown.

          Table I.--Budget and Fee Recovery Amounts for FY 2002
                          [Dollars in millions]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Budget Authority.......................................     $559.1
    Less NWF.................................................      -23.7
    Less General Fund........................................      -36.0
                                                              ----------
        Balance..............................................     $499.5
    Fee Recovery Rate for FY 2002............................    x 96.0%
                                                              ----------
Total Amount to be Recovered For FY 2002.....................     $479.5
    Less Carryover from FY 2001..............................       -1.7
                                                              ----------
Amount to be Recovered Through Fees and Other Receipts.......     $477.8
    Less Estimated Part 170 Fees and Other Receipts..........     -124.0
                                                              ==========

[[Page 42620]]

 
Part 171 Fee Collections Required............................     $353.8
Part 171 Billing Adjustments:
    Unpaid FY 2002 Invoices (estimated)......................        2.9
    Less Payments Received in FY 2002 for Prior Year Invoices      -11.1
     (estimated).............................................
                                                              ----------
        Subtotal.............................................       -8.2
                                                              ==========
Adjusted Part 171 Collections Required.......................     $345.6
------------------------------------------------------------------------

    The FY 2002 final 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 2002 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 2002 final rule. 
For these licensees, payment will be due on the effective date of the 
FY 2002 rule. Those materials licensees whose license anniversary date 
during FY 2002 falls before the effective date of the final FY 2002 
rule will be billed for the annual fee during the anniversary month of 
the license at the FY 2001 annual fee rate. Those materials licensees 
whose license anniversary date falls on or after the effective date of 
the final FY 2002 rule will be billed for the annual fee at the FY 2002 
annual fee rate during the anniversary month of the license, and 
payment will be due on the date of the invoice.
    As noted in the FY 2002 proposed fee rule, the National Mining 
Association (NMA) filed a petition requesting the commencement of a 
rulemaking proceeding which would result in a modification of the 
existing fee schedules to waive all fees for commercial uranium 
recovery licensees. Alternatively, the NMA requested the waiver of fees 
associated with a contemplated rulemaking that would establish 
requirements for licensing uranium and thorium facilities. The NRC 
published the NMA's petition in the Federal Register for public comment 
(66 FR 55604; November 2, 2001). Because fees would increase for other 
licensees should the Commission grant the petition, the NRC invited 
those that had arguments to place before the Commission that were not 
submitted in response to the November 2, 2001, Federal Register 
document to do so during the comment period for the FY 2002 proposed 
fee rule. After careful evaluation of NMA's request and all comments 
received, the Commission has decided to deny the NMA petition. 
Additional detail on this petition and the Commission's denial will be 
published in the Federal Register in the near future.
    In accordance with its FY 1998 announcement, the NRC has 
discontinued mailing the final rule to all licensees as a cost-saving 
measure. Accordingly, the NRC does not plan to routinely mail the FY 
2002 final rule or future final fee rules to licensees. However, the 
NRC will send the final rule to any licensee or other person upon 
specific request. To request a copy, contact the License Fee and 
Accounts Receivable Branch, Division of Accounting and Finance, Office 
of the Chief Financial Officer, at 301-415-7554, or e-mail us at 
[email protected]. In addition to publication in the Federal Register, the 
final rule will be available on the Internet at http://ruleforum.llnl.gov for at least 90 days after the effective date of the 
final rule.
    The NRC is 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 part 170 fees based on the revised hourly rates. 
Additionally, the NRC is revising part 170 to clarify that full cost 
fees will be assessed for amendments and inspections related to the 
storage of reactor-related Greater than Class C (GTCC) waste under part 
72, and to clarify the fee waiver provisions for special projects, 
including topical reports.
    The 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 2002 direct program full time equivalents (FTEs) and the FY 2002 NRC 
budget, excluding direct program support costs and NRC's appropriations 
from the NWF and the General Fund. These rates are used to determine 
the part 170 fees. The hourly rate for the reactor program is $156 per 
hour ($276,345 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 materials program (nuclear 
materials and nuclear waste programs) is $152 per hour ($269,451 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 2001 
final fee rule, the reactor and materials program rates were $150 and 
$144, respectively. The increases are primarily due to the Government-
wide pay increase in FY 2002.
    The method used to determine the two professional hourly rates is 
as follows:
    a. Direct program FTE levels are identified for the reactor program 
and the materials program (nuclear materials and nuclear waste 
programs).
    b. Direct contract support, which is the use of contract or other 
services in support of the line organization's direct program, is 
excluded from the calculation of the hourly rates because the costs for 
direct contract support are charged directly through the various 
categories of fees.
    c. All other program costs (i.e., Salaries and Benefits, Travel) 
represent ``in-house'' costs and are to be collected by dividing them 
uniformly by the total number of direct FTEs for the program. In 
addition, salaries and benefits plus contracts for non-program direct 
management and support, and for the Office of the Inspector General, 
are allocated to each program based on that program's direct costs. 
This method results in the following costs which are included in the 
hourly rates. Due to rounding, adding the individual numbers in the 
table may result in a total that is slightly different than the one 
shown.

[[Page 42621]]



      Table II.--FY 2002 Budget Authority Included in Hourly Rates
------------------------------------------------------------------------
                                                  Reactor     Materials
                                                  program      program
------------------------------------------------------------------------
Direct Program Salaries & Benefits............      $117.0M       $32.2M
Overhead Salaries & Benefits, Program Travel          59.2M        15.6M
 and Other Support............................
Allocated Agency Management and Support.......       106.9M        29.0M
                                               -------------------------
    Subtotal..................................      $283.1M       $76.8M
Less offsetting receipts......................        -0.1M       -0.00M
                                               -------------------------
    Total Budget Included in Hourly Rate......      $283.0M       $76.8M
Program Direct FTEs...........................       1024.0        285.1
Rate per Direct FTE...........................      276,345      269,451
Professional Hourly Rate (Rate per direct FTE          $156         $152
 divided by 1,776 hours)......................
------------------------------------------------------------------------

    As shown in Table II, dividing the $283.0 million budgeted amount 
(rounded) included in the hourly rate for the reactor program by the 
reactor program direct FTEs (1024.0) results in a rate for the reactor 
program of $276,345 per FTE for FY 2002. The Direct FTE Hourly Rate for 
the reactor program is $156 per hour (rounded to the nearest whole 
dollar). This rate is calculated by dividing the cost per direct FTE 
($276,345) by the number of productive hours in one year (1,776 hours) 
as set forth in the revised OMB Circular A-76, ``Performance of 
Commercial Activities.'' Similarly, dividing the $76.8 million budgeted 
amount (rounded) included in the hourly rate for the materials program 
by the program direct FTEs (285.1) results in a rate of $269,451 per 
FTE for FY 2002. The Direct FTE Hourly Rate for the materials program 
is $152 per hour (rounded to the nearest whole dollar). This rate is 
calculated by dividing the cost per direct FTE ($269,451) by the number 
of productive hours in one year (1,776 hours).
2. Fees for Storage of Greater than Class C Waste Under Part 72
    On October 11, 2001 (66 FR 51823), the NRC published a final rule 
revising part 72 to allow licensing for the interim storage of reactor-
related Greater than Class C (GTCC) waste in a manner that is 
consistent with current licensing for the interim storage of spent 
fuel. As provided in Sec. 72.6, reactor-related GTCC waste can only be 
stored under the provisions of a specific license. The NRC stated in 
the statement of considerations for the part 72 final rule that 
subsequent to issuing the final revision of part 72, part 170 would be 
amended to clarify that full cost fees will be assessed for amendments 
and inspections related to the storage of reactor-related GTCC waste 
under part 72. Therefore, the NRC is revising Category 1.B. of 
Sec. 170.31 to specifically include storage of reactor-related GTCC 
waste licensed under part 72. Category 1.B. of Sec. 170.31 previously 
referred only to specific licenses for receipt and storage of spent 
fuel at an independent storage installation.
3. Fee Adjustments
    The NRC is adjusting the current part 170 fees in Secs. 170.21 and 
170.31 to reflect the changes in the revised hourly rates. The full 
cost fees assessed under Secs. 170.21 and 170.31 are based on the 
professional hourly rates and any direct program support (contractual 
services) costs expended by the NRC. Any professional hours expended on 
or after the effective date of the final rule will be assessed at the 
FY 2002 hourly rates.
    The fees in Secs. 170.21 and 170.31 that are based on the average 
time to review an application (``flat'' fees) have been adjusted to 
reflect the increase in the professional hourly rates from 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. 
Applications filed on or after the effective date of the final rule 
will be subject to the revised fees in this final rule.
4. Fee Waivers
    In the FY 2001 final fee rule (66 FR 32452; June 14, 2001), the NRC 
revised criterion (c) of Footnote 4 to Sec. 170.21 and criterion (c) of 
Footnote 5 to Sec. 170.31 to clarify that fees will not be assessed for 
requests or reports submitted to the NRC as a means of exchanging 
information between industry organizations and the NRC for the purpose 
of supporting the NRC's generic regulatory improvements or efforts. 
However, the NRC has continued to receive requests for fee exemptions 
that do not meet the intent of the waiver provisions. In addition, 
Footnote 4 to Sec. 170.21, Footnote 5 to Sec. 170.31, and material in 
the definition of Special Projects in Sec. 170.3 concerning these types 
of requests and reports provide information that is more suitable for 
inclusion in Sec. 170.11, Exemptions.
    Therefore, the NRC is deleting Footnote 4 to Sec. 170.21 and 
Footnote 5 to Sec. 170.31, modifying the language that was in those 
footnotes, and is adding the revised fee waiver provisions to the 
Exemption section as Sec. 170.11(a)(1). The NRC is also removing the 
language relating to certain reports and requests submitted to the NRC 
for review from the definition of Special Projects in Sec. 170.3. The 
fee waiver provisions have been revised to specifically state that the 
fee waiver criteria apply only when it has been demonstrated that the 
report or request has been submitted to the NRC for the specific 
purpose of supporting the generic regulatory improvements or efforts of 
the NRC, rather than the industry, and that the NRC, at the time of the 
submission, plans to use the submission for that purpose. The 
modification also clarifies that the waiver provisions do not apply to 
reports or documents submitted for the NRC's review that the NRC, at 
the time of the submission, does not plan to use to improve its 
regulatory program, and that therefore will primarily provide only a 
special benefit to identifiable recipients, such as the industry, 
vendors, or specific licensees. These criteria will allow the NRC to 
make waiver determinations soon after the documents are submitted. As 
provided in Sec. 170.5, fee exemption requests should be made to the 
NRC's Chief Financial Officer. To further assist applicants in 
determining in advance whether their submittals meet the fee waiver 
criteria, specific examples of the

[[Page 42622]]

types of submissions that meet the fee waiver criteria and those that 
do not are provided in Sec. 170.11(a)(1).
    In summary, the NRC is amending 10 CFR part 170 to--
    1. Revise the materials and reactor program FTE hourly rates;
    2. Revise the licensing fees to be assessed to reflect the revised 
hourly rates;
    3. Revise fee category 1.B. of Sec. 170.31 to clarify that full 
cost fees will be assessed for amendments and inspections related to 
the storage of GTCC Waste under part 72; and
    4. Add to Sec. 170.11, Exemptions, the fee waiver provisions that 
are currently in Footnote 4 to Sec. 170.21 and Footnote 5 to 
Sec. 170.31, and clarify the fee waiver provisions currently in 
criterion (c) of these Footnotes. These Footnotes, as well as material 
in the definition of Special Projects in Sec. 170.3 related to certain 
special requests and reports submitted to NRC for review, have been 
deleted.

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

    The NRC is revising the annual fees for FY 2002, amending part 171 
to specifically cover combined licenses issued under part 52, 
clarifying the annual fee exemption provision for reactors, and 
modifying the methodology for allocating the uranium recovery annual 
fee amount among the types of uranium recovery licenses. As explained 
previously, the final annual fees for this year reflect the 
Commission's decision that the FY 2002 budgeted costs for the MOX 
contested hearing should be assessed to all licensees in their annual 
fees, instead of being charged only to the fuel facility class of 
licensees. Accordingly, these costs have been treated as a fee 
adjustment and assessed to all classes of licensees based on their 
respective percentages of the NRC's budget. The amendments are as 
follows.
1. Annual Fees
    The NRC is establishing rebaselined annual fees for FY 2002. The 
Commission's policy commitment, made in the statement of considerations 
accompanying the FY 1995 fee rule (60 FR 32225; June 20, 1995), and 
further explained in the statement of considerations accompanying the 
FY 1999 fee rule (64 FR 31448; June 10, 1999), establishes that base 
annual fees will be re-established (rebaselined) at least every third 
year, and more frequently if there is a substantial change in the total 
NRC budget or in the magnitude of the budget allocated to a specific 
class of licenses. The fees were last rebaselined in FY 2001. Based on 
the change in the magnitude of the budget to be recovered through fees, 
the Commission has determined that it is appropriate to rebaseline the 
annual fees again this year. Rebaselining fees will result in increased 
annual fees for all classes of licenses, except for the non-power 
reactor and spent fuel storage/reactor decommissioning classes, which 
will have annual fee decreases.
    The annual fees in Secs. 171.15 and 171.16 are revised for FY 2002 
to recover approximately 96 percent of the NRC's FY 2002 budget 
authority, less the estimated amount to be recovered through part 170 
fees and the amounts appropriated from the NWF and the General Fund. 
The total amount to be recovered through annual fees for FY 2002 is 
$345.6 million, compared to $331.6 million for FY 2001.
    The FY 2002 annual fees reflect an increase for most categories of 
licenses and decrease for others from the previous year. The increases 
in annual fees range from approximately 4.9 percent for the power 
reactor class to approximately 129 percent for rare earth facilities. 
The decreases in annual fees range from approximately 3.5 percent for 
non-power reactors, to approximately 17 percent for the Title II 
uranium recovery specific licenses. The final annual fees reflect the 
revised estimates for part 170 collections for FY 2002. The final 
annual fees have also been adjusted to reflect the Commission's 
decision that, for FY 2002 only, the budgeted costs for the MOX 
contested hearing should be assessed to all classes of licensees in 
their annual fees. For the proposed rule, these costs were assessed 
only to the fuel facility class of licensees. As a result, the amount 
assessed to the fuel facility class has decreased by approximately 
$408,000, while the total amount assessed to most of the other classes 
of licensees has increased correspondingly. Thus, the amounts assessed 
to each of the affected classes for the FY 2002 MOX contested hearing 
costs are as follows: operating reactors--$345,000; spent fuel storage/
reactor decommissioning--$33,000; non-power reactors--$400; fuel 
facility--$25,000; materials users--$19,000; transportation--$5,000; 
rare earth facilities--$1000; and uranium recovery--$4,000. Due to 
rounding, the annual fees for certain individual licensees in some of 
the affected classes did not change.
    Factors affecting the changes to the annual fee amounts from FY 
2001 include changes in budgeted costs for the different classes of 
licenses, the reduction in the fee recovery rate from 98 percent for FY 
2001 to 96 percent for FY 2002, the estimated part 170 collections for 
the various classes of licenses, a $1.7 million carryover from 
additional collections in FY 2001 that were unanticipated at the time 
the final FY 2001 fee rule was published (compared to a $3.1 million 
carryover from FY 2000 which reduced FY 2001 annual fees), the 
increased hourly rates, and decreases in the numbers of licensees for 
certain categories of licenses. In addition, the decreases for the 
Title II uranium recovery specific licenses are based on a change to 
the methodology for allocating the annual fee amount for the uranium 
recovery class among Title I and Title II licenses. This change is 
described in detail in section B below.
    In addition, for some classes of materials licenses, a change in 
policy for assigning Project Managers (PMs) has contributed to the 
annual fee increases. In the last few years, part 170 fees have 
increased for certain classes of licenses due to initiatives to recover 
costs for additional activities through fees for services rather than 
annual fees. One such initiative was the policy for full cost recovery 
under part 170 for PMs, which became effective with the FY 1999 final 
fee rule (64 FR 31448; June 10, 1999). However, in response to concerns 
expressed by materials licensees, the Office of Nuclear Material Safety 
and Safeguards (NMSS) in July 2001 changed its policy for assigning 
PMs. The revised NMSS policy has resulted in classifying approximately 
four staff members as PMs at this time, compared to approximately 97 in 
FY 2000. Under NMSS's revised policy, if project management duties to 
support a licensee/facility do not exceed 75 percent of the assigned 
person's time for any given two week period, then the staff member will 
be considered a ``Point of Contact.'' As a result, that person's time 
which is not specifically associated with a licensing action or 
inspection is now recovered under part 171.
    Although the change in policy for assigning PMs causes a decrease 
in estimated part 170 collections for some classes, it also results in 
more of the budgeted costs for that class being recovered through 
annual fees. However, the change does not result in an increase in 
total fees paid by these classes. Licensees in the rare earth

[[Page 42623]]

facility class, for example, have an annual fee increase of 
approximately 129 percent, although the total budgeted costs for the 
class actually decreased from FY 2001. The increase in annual fees is 
primarily the result of the change in PM policy which caused a shift in 
cost recovery from part 170 to part 171. The effect of this change on 
the part 170 fees, part 171 fees, and the total fees for the class 
compared to FY 2001 is illustrated in Table III below.

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

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

             Table IV.--Rebaselined Annual Fees for FY 2002
------------------------------------------------------------------------
                                                              FY 2002
               Class/category of licenses                   Annual fee
------------------------------------------------------------------------
Operating Power Reactors (including Spent Fuel Storage/       $2,849,000
 Reactor Decommissioning annual fee)....................
Spent Fuel Storage/Reactor Decommissioning..............         239,000
Nonpower Reactors.......................................          71,400
High Enriched Uranium Fuel Facility.....................       3,834,000
Low Enriched Uranium Fuel Facility......................       1,286,000
UF6 Conversion Facility.................................         551,000
Uranium Mills...........................................          77,900
Transportation:
    Users/Fabricators...................................          72,900
    Users Only..........................................           7,300
Typical Materials Users:
    Radiographers.......................................          13,700
    Well Loggers........................................          10,000
    Gauge Users.........................................           2,700
    Broad Scope Medical.................................          26,100
------------------------------------------------------------------------

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

                        Table V.--Surcharge Costs
                          [Dollars in millions]
------------------------------------------------------------------------
                                                               FY 2002
                     Category of costs                         budgeted
                                                                costs
------------------------------------------------------------------------
1. Activities not attributable to an existing NRC licensee
 or class of licensee:
    a. International activities............................         $8.4
    b. Agreement State oversight...........................          8.7
    c. Low-level waste disposal generic activities.........          1.5
    d. Site decommissioning management plan activities not           8.3
     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 institutions          7.9
    b. Licensing and inspection activities associated with           3.7
     other Federal agencies................................
    c. Costs not recovered from small entities under 10 CFR          4.5
     171.16(c).............................................
3. Activities supporting NRC operating licensees and
 others:
    a. Regulatory support to Agreement States..............         13.0
    b. Generic decommissioning/reclamation (except those             8.3
     related to power reactors)............................
                                                            ------------
        Total surcharge costs..............................         64.4
Less 4 percent of NRC's FY 2002 total budget (minus NWF and        -20.0
 General Fund amounts).....................................
                                                            ------------
    Total Surcharge Costs to be Recovered..................         44.4
------------------------------------------------------------------------


[[Page 42624]]

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

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

    The budgeted costs allocated to each class of licenses and the 
calculations of the rebaselined fees are described in A. through H. 
below. The work papers which support this final rule show in detail the 
allocation of NRC's budgeted resources for each class of licenses and 
how the fees are calculated. The work papers are available 
electronically at the NRC's Public Electronic Reading Room on the 
Internet at Web site address http://www.gov/reading-rm/adams.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 2002 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 2002 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 2002 final 
rule to reactors and major fuel cycle facilities. For these licensees, 
payment will be due on the effective date of the FY 2002 rule. Those 
materials licensees whose license anniversary date during FY 2002 falls 
before the effective date of the FY 2002 final rule will be billed for 
the annual fee during the anniversary month of the license, and 
continue to pay annual fees at the FY 2001 rate in FY 2002. However, 
those materials licensees whose license anniversary date falls on or 
after the effective date of the FY 2002 final rule will be billed for 
the annual fee at the FY 2002 rate during the anniversary month of the 
license, and payment will be due on the date of the invoice.

A. Fuel Facilities

    The FY 2002 budgeted costs to be recovered in annual fees assessed 
to the fuel facility class of licenses is approximately $17.7 million. 
This amount includes the LLW and other surcharges allocated to the fuel 
facility class. The costs are allocated to the individual fuel facility 
licensees based on the fuel facility matrix established in the FY 1999 
final fee rule (64 FR 31448; June 10, 1999). In this matrix, licensees 
are grouped into five categories according to their licensed activities 
(i.e., nuclear material enrichment, processing operations, and material 
form) and according to the level, scope, depth of coverage, and rigor 
of generic regulatory programmatic effort applicable to each category 
from a safety and safeguards perspective. This methodology can be 
applied to determine fees for new and current licensees, licensees in 
unique license situations, and certificate holders.
    The methodology allows for changes in the number of licensees or 
certificate holders, licensed-certified material/activities, and total 
programmatic resources to be recovered through annual fees. When a 
license or certificate is modified, this fuel facility fee methodology 
may result in a change in fee category and may have an effect on the 
fees assessed to other licensees and certificate holders. For example, 
if a fuel facility licensee amended its license/certificate in such a 
way that it resulted in the licensee not being subject to part 171 fees 
applicable to fuel facilities, the budgeted costs included in the 
annual fee will be spread among the remaining licensees/certificate 
holders, and result in a higher fee for those remaining in that fee 
category.
    Prior to the beginning of FY 2002, one low enriched uranium fuel 
facility permanently ceased licensed operations and filed for an 
amendment to place its license in a decommissioning status. The annual 
fees for the fuel facility class reflect this change in the number of 
licensees subject to annual fees.
    The methodology is applied as follows. First, a fee category is 
assigned based on the nuclear material and activity authorized by the 
license or certificate. Although a licensee/ certificate holder may 
elect not to fully utilize a license/certificate, it is still used as 
the basis for determining authorized nuclear material possession and 
use/activity. Next, the category and license/certificate information 
are used to determine where the licensee/certificate holder fits into 
the matrix. The matrix depicts the categorization of licensee/
certificate holders by authorized material types and use/activities and 
the relative programmatic effort associated with each category. The 
programmatic effort (expressed as a numeric value in the matrix) 
reflects the safety and safeguards risk significance associated with 
the nuclear material and use/activity, and the commensurate generic 
regulatory program (i.e., scope, depth, and rigor).
    The effort factors for the various subclasses of fuel facility 
licenses are summarized in Table VII below.

[[Page 42625]]



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

    Applying these factors to the safety, safeguards, and surcharge 
components of the $17.7 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 VIII.--Annual Fees for Fuel Facilities
------------------------------------------------------------------------
                                                          FY 2002
                    Facility type                       annual fee
---------------------------------------------------------------------
High Enriched Uranium Fuel..........................      $3,834,000
Uranium Enrichment..................................       2,387,000
Low Enriched Uranium................................       1,286,000
UF 6 Conversion.....................................         551,000
Limited Operations Facility.........................         505,000
Others..............................................         367,000
------------------------------------------------------------------------

B. Uranium Recovery Facilities

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

DOE Annual Fee Amount (UMTRCA Title I and Title II
 general licenses):
    UMTRCA Title I budgeted costs...................        $377,232
    50% of generic/other uranium recovery budgeted           491,173
     costs..........................................
    50% of uranium recovery surcharge...............         189,509
                                                     -----------------
        Total Annual Fee Amount for DOE.............      $1,057,914
Annual Fee Amount for UMTRCA Title II Specific
 Licenses:
    50% of generic/other uranium recovery budgeted          $491,173
     costs..........................................
    50% of uranium recovery surcharge...............         189,509
                                                     -----------------
        Total Annual Fee Amount for Title II                $680,682
         Specific Licenses..........................
 

    The costs allocated to the various categories of Title II specific 
licensees are based on the uranium recovery matrix established in the 
FY 1999 final fee rule (64 FR 31448; June 10, 1999). The methodology 
for establishing part

[[Page 42626]]

171 annual fees for Title II uranium recovery licensees has not changed 
and is as follows:
    (1) The methodology identifies three categories of licenses: 
conventional uranium mills (Class I facilities), uranium solution 
mining facilities (Class II facilities), and mill tailings disposal 
facilities (11e.(2) disposal facilities). Each of these categories 
benefits from the generic uranium recovery program efforts (e.g., 
rulemakings, staff guidance documents);
    (2) The matrix relates the category and the level of benefit by 
program element and subelement;
    (3) The two major program elements of the generic uranium recovery 
program are activities related to facility operations and those related 
to facility closure;
    (4) Each of the major program elements was further divided into 
three subelements;
    (5) The three major subelements of generic activities associated 
with uranium facility operations are regulatory efforts related to the 
operation of mills, handling and disposal of waste, and prevention of 
groundwater contamination. The three major subelements of generic 
activities associated with uranium facility closure are regulatory 
efforts related to decommissioning of facilities and land clean-up, 
reclamation and closure of tailings impoundments, and groundwater 
clean-up. Weighted values were assigned to each program element and 
subelement considering health and safety implications and the 
associated effort to regulate these activities. The applicability of 
the generic program in each subelement to each uranium recovery 
category was qualitatively estimated as either significant, some, 
minor, or none.
    The relative weighted factors per facility type for the various 
subclasses of specifically licensed Title II uranium recovery licensees 
are as follows:

                            Table IX.--Weighted Factors for Uranium Recovery Licenses
----------------------------------------------------------------------------------------------------------------
                                                                                      Level of benefit
                                                                          --------------------------------------
                        Facility type                          Number of                      Total weight
                                                               facilities    Category  -------------------------
                                                                              weight       Value       Percent
----------------------------------------------------------------------------------------------------------------
Class I (conventional mills)................................            3          770        2,310           34
Class II (solution mining)..................................            6          645        3,870           58
11e.(2) disposal............................................            1          475          475            7
11e.(2) disposal incident to existing tailings sites........            1           75           75            1
----------------------------------------------------------------------------------------------------------------

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

          Table X.--Annual Fees for Title II Specific Licenses
------------------------------------------------------------------------
                                                              FY 2002
                      Facility type                         annual fee
------------------------------------------------------------------------
Class I (conventional mills)............................         $77,900
Class II (solution mining)..............................          65,200
11e.(2) disposal........................................          48,000
11e.(2) disposal incidental to existing tailings sites..           7,600
------------------------------------------------------------------------

    In the FY 2001 final rule (66 FR 32478, June 14, 2001), the NRC 
revised Sec. 171.19 to establish a quarterly billing schedule for the 
Class I and Class II licensees, regardless of the annual fee amount. 
Therefore, as provided in Sec. 171.19(b), if the amounts collected in 
the first three quarters of FY 2002 exceed the amount of the revised 
annual fee, the overpayment will be refunded. The remaining categories 
of Title II facilities are subject to billing based on the anniversary 
date of the license as provided in Sec. 171.19(c).

C. Power Reactors

    The approximately $271.4 million in budgeted costs to be recovered 
through FY 2002 annual fees assessed to the power reactor class is 
divided equally among the 104 power reactors licensed to operate. This 
results in a FY 2002 annual fee of $2,610,000 per reactor. 
Additionally, each power reactor licensed to operate will be assessed 
the FY 2002 spent fuel storage/reactor decommissioning annual fee of 
$239,000. This results in a total FY 2002 annual fee of $2,849,000 for 
each power reactor licensed to operate.

D. Spent Fuel Storage/Reactor Decommissioning

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

E. Non-Power Reactors

    Approximately $285,400 in budgeted costs is to be recovered through 
annual fees assessed to the non-power reactor class of licenses for FY 
2002. This amount is divided equally among the four non-power reactors 
subject to annual fees. This results in a FY 2002 annual fee of $71,400 
for each licensee.

F. Rare Earth Facilities

    The FY 2002 budgeted costs of approximately $205,900 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 a FY 2002 annual fee of 
$68,600 for each rare earth facility.
    As explained previously, the increase in annual fees for the rare 
earth class is not the result of increased budgeted costs for the 
class, but rather the result of the change in NMSS's revised PM policy, 
which resulted in a shift of cost recovery for certain activities from 
part 170 to part 171.

[[Page 42627]]

G. Materials Users

    To equitably and fairly allocate the $25.0 million in FY 2002 
budgeted costs to be recovered in annual fees assessed to the 
approximately 5,000 diverse materials users and registrants, the NRC 
has continued to use the FY 1999 methodology to establish baseline 
annual fees for this class. The annual fees are based on the part 170 
application fees and an estimated cost for inspections. Because the 
application fees and inspection costs are indicative of the complexity 
of the license, this approach continues to provide a proxy for 
allocating the generic and other regulatory costs to the diverse 
categories of licenses based on how much it costs the NRC to regulate 
each category. The fee calculation also continues to consider the 
inspection frequency (priority), which is indicative of the safety risk 
and resulting regulatory costs associated with the categories of 
licenses. The annual fee for these categories of licenses is developed 
as follows:

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

    The constant is the multiple necessary to recover approximately 
$17.4 million in general costs and is 1.07 for FY 2002. The inspection 
multiplier is the multiple necessary to recover approximately $5.3 
million in inspection costs for FY 2002, and is 1.1 for FY 2002. The 
unique category costs are any special costs that the NRC has budgeted 
for a specific category of licenses. For FY 2002, of the unique costs 
attributable to medical licensees for the medical development program, 
approximately $126,900 is allocated to NRC medical licensees.
    The annual fee assessed to each licensee also includes a share of 
the $1.9 million in surcharge costs allocated to the materials user 
class of licenses and, for certain categories of these licenses, a 
share of the approximately $300,000 in LLW surcharge costs allocated to 
the class. The annual fee for each fee category is shown in 
Sec. 171.16(d).
1. Transportation
    Of the approximately $4.8 million in FY 2002 budgeted costs to be 
recovered through annual fees assessed to the transportation class of 
licenses, approximately $1.4 million 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 $3.4 million, approximately 
25 percent is allocated to the 77 quality assurance plans authorizing 
use only and the 39 quality assurance plans authorizing use and design/
fabrication. The remaining 75 percent is allocated only to the 39 
quality assurance plans authorizing use and design/fabrication. This 
results in an annual fee of $7,300 for each of the holders of quality 
assurance plans that authorize use only, and an annual fee of $72,900 
for each of the holders of quality assurance plans that authorize use 
and design/fabrication.
2. Part 52  Combined Licenses
    The NRC is revising part 171 to: authorize assessment of annual 
fees for holders of combined licenses issued under part 52; clarify 
that the annual fees will be assessed for each license, and not for 
each unit; and establish when assessment of annual fees will begin.
    Part 171 previously covered annual fees for part 50 licenses, but 
did not specifically cover annual fees for combined licenses issued 
under part 52. Additionally, neither part 52 nor part 171 addressed 
when NRC would begin to assess an annual fee to a part 52 license 
holder. The NRC is revising Sec. 171.3 ``Scope'' to specify that the 
annual fee regulations also apply to any person holding a combined 
license issued under part 52.
    The annual fees for a part 52 combined license will be assessed 
only after construction has been completed, all regulatory requirements 
have been met, and the Commission has authorized operation of the 
reactor(s). This approach is consistent with the Commission's policy of 
not imposing annual fees on those entities only holding a power reactor 
construction permit.
    Previously, Sec. 171.15(a) provided that reactor licensees shall 
pay an annual fee ``* * * for each unit for each license held * * *''. 
It is the agency's present practice to charge annual fees per license, 
and the NRC is revising Sec. 171.15(a) to clarify that the annual fees 
are assessed for each license, and not for each unit.
    At this time, the NRC is not establishing a specific annual fee 
category or amount for part 52 combined licenses because there are no 
existing combined licenses issued under part 52. However, the NRC is 
making these changes so potential applicants for a part 52 combined 
license are aware that such a license will be subject to annual fees in 
the future.
3. Fee Exemption for Reactors in 10 CFR 171.11
    The NRC is modifying Sec. 171.11(c) to clarify that the annual fee 
exemption provision applies only to reactors licensed to operate. This 
change is consistent with the statement of considerations in the 1986 
final fee rule (51 FR 33224; September 18, 1986), which added this 
specific fee exemption to the regulation. Therein the Commission stated 
it had considered calculating the annual fee for power reactors with 
``operating'' licenses based on the thermal megawatt ratings of those 
reactors. However, the Commission decided against determining its fees 
based on the size of the reactor because the NRC found no necessary 
relationship between the thermal megawatt rating of a reactor and the 
agency's regulatory costs. Nevertheless, the NRC stated because it was 
not the Commission's intent to promulgate a fee schedule that would 
have the effect of forcing smaller, older reactors to shut down, it was 
adding an annual fee exemption provision in Sec. 171.11 which takes 
reactor size, age, and other relevant factors into consideration. In 
the section-by-section analysis for Sec. 171.11, the NRC stated that 
the added exemption section ``* * * provides that the holder of a 
license to `operate' a power reactor * * * may apply to the Commission 
for partial relief from annual fee[s].''
    In the FY 1999 final fee rule (64 FR 31448; June 10, 1999), the NRC 
established the Spent Fuel Storage/Reactor Decommissioning (SFSRD) 
class with an annual fee to be assessed to all reactor licensees having 
fuel onsite, regardless of their operating status. In the statement of 
considerations for the FY 1999 fee rule, the NRC stated that the 
Commission determined all reactors, including those which are shut 
down, should pay the SFSRD annual fee to recover the NRC's costs 
related to generic reactor decommissioning and spent fuel storage 
activities. It is clear from the statement of considerations that the 
Commission did not intend to relieve reactors that are not operating 
from the annual fee requirements unless they had permanently ceased 
operations and had no fuel onsite.
    The Commission reemphasizes that all communications concerning 
annual fees, including exemption requests, should be addressed to the 
Chief Financial Officer, U.S. NRC, Washington, DC 20555-0001 in 
accordance with Sec. 171.9.

[[Page 42628]]

4. Administrative Amendment
    The NRC is modifying Category 1.B. of Sec. 171.16(d) to 
specifically include licenses issued under part 72 for reactor-related 
GTCC waste. This is an administrative change that is being made only to 
ensure consistency with the description for fee category 1.B. of 
Sec. 170.31 as described in A. above. The NRC is not establishing an 
annual fee for this category of license.
    In summary, the NRC has--
    1. Established rebaselined annual fees for FY 2002;
    2. Modified part 171 to specifically authorize assessment of annual 
fees for part 52 combined licenses;
    3. Clarified that the annual fee exemption provision in 
Sec. 171.11(c) applies only to reactors licensed to operate;
    4. Made an administrative change to fee category 1.B. of 
Sec. 171.16(d) to be consistent with the change to category 1.B. of 
Sec. 170.31.

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 96 percent of its 
budget authority in FY 2002 as is required by the Omnibus Budget 
Reconciliation Act of 1990, as amended. This action does not constitute 
the establishment of a standard that contains generally applicable 
requirements.

V. Environmental Impact: Categorical Exclusion

    The NRC has determined that this 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 does not contain information collection 
requirements and, therefore, is not subject to the requirements of the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

VII. Regulatory Analysis

    With respect to 10 CFR part 170, this 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, 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 by 2 percent per year beginning 
in FY 2001, until the fee recovery amount is 90 percent in FY 2005. The 
NRC's fee recovery amount for FY 2002 is 96 percent. To comply with 
this statutory requirement and in accordance with Sec. 171.13, the NRC 
is publishing the amount of the FY 2002 annual fees for reactor 
licensees, fuel cycle licensees, materials licensees, and holders of 
Certificates of Compliance, registrations of sealed source and devices 
and QA program approvals, and Government agencies. OBRA-90, consistent 
with the accompanying Conference Committee Report, and the amendments 
to OBRA-90, provide that--
    (1) The annual fees be based on approximately 96 percent of the 
Commission's FY 2002 budget of $559.1 million less the amounts 
collected from part 170 fees and funds directly appropriated from the 
NWF to cover the NRC's high level waste program;
    (2) The annual fees shall, to the maximum extent practicable, have 
a reasonable relationship to the cost of regulatory services provided 
by the Commission; and
    (3) The annual fees be assessed to those licensees the Commission, 
in its discretion, determines can fairly, equitably, and practicably 
contribute to their payment.
    In addition, $36.0 million has been appropriated from the General 
Fund for activities related to homeland security. The FY 2002 Defense 
Appropriations Act states that this $36.0 million shall be excluded 
from license fee revenues.
    10 CFR part 171, which established annual fees for operating power 
reactors effective October 20, 1986 (51 FR 33224; September 18, 1986), 
was challenged and upheld in its entirety in Florida Power and Light 
Company v. United States, 846 F.2d 765 (D.C. Cir. 1988), cert. denied, 
490 U.S. 1045 (1989). Further, the NRC's FY 1991 annual fee rule 
methodology was upheld by the D.C. Circuit Court of Appeals in Allied 
Signal v. NRC, 988 F.2d 146 (D.C. Cir. 1993).

[[Page 42629]]

VIII. Regulatory Flexibility Analysis

    The NRC is required by the Omnibus Budget Reconciliation Act of 
1990, as amended, to recover approximately 96 percent of its FY 2002 
budget authority through the assessment of user fees. This act further 
requires that the NRC establish a schedule of charges that fairly and 
equitably allocates the aggregate amount of these charges among 
licensees.
    This final rule establishes the schedules of fees that are 
necessary to implement the Congressional mandate for FY 2002. The final 
rule results in increases in the annual fees charged to certain 
licensees and holders of certificates, registrations, and approvals, 
and decreases in annual fees for others. Licensees affected by the 
annual fee increases and decreases include 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 2002.

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 170

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

10 CFR Part 171

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


    For the reasons set out in the preamble and under the authority of 
the Atomic Energy Act of 1954, as amended; the Energy Reorganization 
Act of 1974, as amended; and 5 U.S.C. 552 and 553, the NRC is adopting 
the following amendments to 10 CFR parts 170 and 171.

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

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

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

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


Sec. 170.3  Definitions.

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

    3. In Sec. 170.11, paragraph (a)(1) is added to read as follows:


Sec. 170.11  Exemptions.

    (a) * * *
    (1) A special project that is a request/report submitted to the 
NRC--
    (i) In response to a Generic Letter or NRC Bulletin that does not 
result in an amendment to the license, does not result in the review of 
an alternate method or reanalysis to meet the requirements of the 
Generic Letter, or does not involve an unreviewed safety issue;
    (ii) In response to an NRC request (at the Associate Office 
Director level or above) to resolve an identified safety, safeguards, 
or environmental issue, or to assist NRC in developing a rule, 
regulatory guide, policy statement, generic letter, or bulletin; or
    (iii) As a means of exchanging information between industry 
organizations and the NRC for the specific purpose of supporting the 
NRC's generic regulatory improvements or efforts.
    (A) This fee exemption applies only when:
    (1) It has been demonstrated that the report/request has been 
submitted to the NRC specifically for the purpose of supporting NRC's 
development of generic guidance and regulations (e.g., rules, 
regulations, guides and policy statements); and
    (2) The NRC, at the time the document is submitted, plans to use it 
for one of the purposes given in paragraph (a)(1)(iii)(A)(1) of this 
section. In this case, the exemption applies even if ultimately the NRC 
does not use the document as planned.
    (B) An example of the type of document that meets the fee exemption 
criteria is a topical report that is submitted to the NRC for the 
specific purpose of supporting the NRC's development of a Regulatory 
Guide, and which the NRC plans to use in the development of that 
Regulatory Guide.
    (C) Fees will not be waived for reports/requests that are not 
submitted specifically for the purpose of supporting the NRC's generic 
regulatory improvements or efforts, because the primary beneficiary of 
the NRC's review and approval of such documents is the requesting 
organization. In this case, the

[[Page 42630]]

waiver provision does not apply even though the NRC may realize some 
benefits from its review and approval of the document.
    (D) An example of the type of document that does not meet the fee 
waiver criteria is a topical report submitted for the purpose of 
obtaining NRC approval so that the report can be used by the industry 
in the future to address licensing or safety issues.
* * * * *
    4. Section 170.20 is revised to read as follows:


Sec. 170.20  Average cost per professional staff-hour.

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

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


    5. In Sec. 170.21, the introductory text, and in the table, 
Category J, Category K, and footnotes 1, 2, and 3 to the table are 
revised and footnote 4 is removed to read as follows:


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

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

                        Schedule of Facility Fees
                     (See footnotes at end of table)
------------------------------------------------------------------------
      Facility categories and type of fees             Fees\1\ \2\
------------------------------------------------------------------------
 
*                  *                  *                  *
                  *                  *                  *
J. Special projects:
    Approvals and preapplication/licensing       Full Cost.
     activities.
    Inspections\3\.............................  Full Cost.
K. Import and export licenses:
    Licenses for the import and export only of
     production and utilization facilities or
     the export only of components for
     production and utilization facilities
     issued under 10 CFR part 110.
        1. Application for import or export of
         reactors and other facilities and
         exports of components which must be
         reviewed by the Commissioners and the
         Executive Branch, for example, actions
         under 10 CFR 110.40(b)
            Application--new license...........  $9,900
            Amendment..........................  $9,900
        2. Application for export of reactor
         and other components requiring
         Executive Branch review only, for
         example, those actions under 10 CFR
         110.41(a)(1)-(8)
            Application--new license...........  $5,800
            Amendment..........................  $5,800
        3. Application for export of components
         requiring foreign government
         assurances only
            Application--new license...........  $1,800
            Amendment..........................  $1,800
        4. Application for export of facility
         components and equipment not requiring
         Commissioner review, Executive Branch
         review, or foreign government
         assurances
            Application--new license...........  $1,200
            Amendment..........................  $1,200
        5. Minor amendment of any export or
         import license to extend the
         expiration date, change domestic
         information, or make other revisions
         which do not require in-depth analysis
         or review
            Amendment..........................  $230
------------------------------------------------------------------------
\1\ Fees will not be charged for orders issued by the Commission under
  Sec.  2.202 of this chapter or for amendments resulting specifically
  from the requirements of these types of Commission orders. Fees will
  be charged for approvals issued under a specific exemption provision
  of the Commission's regulations under Title 10 of the Code of Federal
  Regulations (e.g., 10 CFR 50.12, 73.5) and any other sections in
  effect now or in the future, regardless of whether the approval is in
  the form of a license amendment, letter of approval, safety evaluation
  report, or other form. Fees for licenses in this schedule that are
  initially issued for less than full power are based on review through
  the issuance of a full power license (generally full power is
  considered 100 percent of the facility's full rated power). Thus, if a
  licensee received a low power license or a temporary license for less
  than full power and subsequently receives full power authority (by way
  of license amendment or otherwise), the total costs for the license
  will be determined through that period when authority is granted for
  full power operation. If a situation arises in which the Commission
  determines that full operating power for a particular facility should
  be less than 100 percent of full rated power, the total costs for the
  license will be at that determined lower operating power level and not
  at the 100 percent capacity.
\2\ Full cost fees will be determined based on the professional staff
  time and appropriate contractual support services expended. For
  applications currently on file and for which fees are determined based
  on the full cost expended for the review, the professional staff hours
  expended for the review of the application up to the effective date of
  the final rule will be determined at the professional rates in effect
  at the time the service was provided. For those applications currently
  on file for which review costs have reached an applicable fee ceiling
  established by the June 20, 1984, and July 2, 1990, rules but are
  still pending completion of the review, the cost incurred after any
  applicable ceiling was reached through January 29, 1989, will not be
  billed to the applicant. Any professional staff-hours expended above
  those ceilings on or after January 30, 1989, will be assessed at the
  applicable rates established by Sec.  170.20, as appropriate, except
  for topical reports whose costs exceed $50,000. Costs which exceed
  $50,000 for any topical report, amendment, revision or supplement to a
  topical report completed or under review from January 30, 1989,
  through August 8, 1991, will not be billed to the applicant. Any
  professional hours expended on or after August 9, 1991, will be
  assessed at the applicable rate established in Sec.  170.20.
\3\ Inspections covered by this schedule are both routine and non-
  routine safety and safeguards inspections performed by NRC for the
  purpose of review or follow-up of a licensed program. Inspections are
  performed through the full term of the license to ensure that the
  authorized activities are being conducted in accordance with the
  Atomic Energy Act of 1954, as amended, other legislation, Commission
  regulations or orders, and the terms and conditions of the license.
  Non-routine inspections that result from third-party allegations will
  not be subject to fees.


[[Page 42631]]


    6. Section 170.31 is revised to read as follows:


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

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

                       Schedule of Materials Fees
                     [See footnotes at end of table]
------------------------------------------------------------------------
Category of materials licenses and type of fees
                      \1\                              Fees \2\ \3\
------------------------------------------------------------------------
1. Special nuclear material:
    A. Licenses for possession and use of 200
     grams or more of plutonium in unsealed
     form or 350 grams or more of contained U-
     235 in unsealed form or 200 grams or more
     of U-233 in unsealed form. This includes
     applications to terminate licenses as well
     as licenses authorizing possession only:
        Licensing and Inspection...............  Full Cost.
    B. Licenses for receipt and storage of
     spent fuel and/or reactor-related Greater
     than Class C (GTCC) waste at an
     independent spent fuel storage
     installation (ISFSI):
        Licensing and inspection...............   Full Cost.
    C. Licenses for possession and use of
     special nuclear material in sealed sources
     contained in devices used in industrial
     measuring systems, including x-ray
     fluorescence analyzers: \4\
        Application............................  $700
    D. All other special nuclear material
     licenses, except licenses authorizing
     special nuclear material in unsealed form
     in combination that would constitute a
     critical quantity, as defined in Sec.
     150.11 of this chapter, for which the
     licensee shall pay the same fees as those
     for Category 1A: \4\
        Application............................  $1,400
    E. Licenses or certificates for
     construction and operation of a uranium
     enrichment facility:
        Licensing and inspection...............  Full Cost.
2. Source material:
    A.(1) Licenses for possession and use of
     source material in recovery operations
     such as milling, in-situ leaching, heap-
     leaching, refining uranium mill
     concentrates to uranium hexafluoride, ore
     buying stations, and ion exchange
     facilities, and in processing of ores
     containing source material for extraction
     of metals other than uranium or thorium,
     including licenses authorizing the
     possession of byproduct waste material
     (tailings) from source material recovery
     operations, as well as licenses
     authorizing the possession and maintenance
     of a facility in a standby mode:
        Licensing and inspection...............  Full Cost.
    (2) Licenses that authorize the receipt of
     byproduct material, as defined in Section
     11e(2) of the Atomic Energy Act, from
     other persons for possession and disposal
     except those licenses subject to fees in
     Category 2A(1):
        Licensing and inspection...............   Full Cost.
    (3) Licenses that authorize the receipt of
     byproduct material, as defined in Section
     11e.(2) of the Atomic Energy Act, from
     other persons for possession and disposal
     incidental to the disposal of the uranium
     waste tailings generated by the licensee's
     milling operations, except those licenses
     subject to the fees in Category 2A(1):
        Licensing and inspection...............  Full Cost.
    B. Licenses which authorize the possession,
     use, and/or installation of source
     material for shielding:
        Application............................  $170
    C. All other source material licenses:
        Application............................  $6,000
3. Byproduct material:
    A. Licenses of broad scope for the
     possession and use of byproduct material
     issued under parts 30 and 33 of this
     chapter for processing or manufacturing of
     items containing byproduct material for
     commercial distribution:
        Application............................  $7,100
    B. Other licenses for possession and use of
     byproduct material issued under part 30 of
     this chapter for processing or
     manufacturing of items containing
     byproduct material for commercial
     distribution:
        Application............................  $2,300
    C. Licenses issued under Secs.  32.72,
     32.73, and/or 32.74 of this chapter that
     authorize the processing or manufacturing
     and distribution or redistribution of
     radiopharmaceuticals, generators, reagent
     kits, and/or sources and devices
     containing byproduct material. This
     category does not apply to licenses issued
     to nonprofit educational institutions
     whose processing or manufacturing is
     exempt under Sec.  170.11(a)(4). These
     licenses are covered by fee Category 3D.
        Application............................  $9,200
    D. Licenses and approvals issued under
     Secs.  32.72, 32.73, and/or 32.74 of this
     chapter authorizing distribution or
     redistribution of radiopharmaceuticals,
     generators, reagent kits, and/or sources
     or devices not involving processing of
     byproduct material. This category includes
     licenses issued under Secs.  32.72, 32.73,
     and/or 32.74 of this chapter to nonprofit
     educational institutions whose processing
     or manufacturing is exempt under Sec.
     170.11(a)(4).
        Application............................  $2,600
    E. Licenses for possession and use of
     byproduct material in sealed sources for
     irradiation of materials in which the
     source is not removed from its shield
     (self-shielded units):
        Application............................  $1,800
    F. Licenses for possession and use of less
     than 10,000 curies of byproduct material
     in sealed sources for irradiation of
     materials in which the source is exposed
     for irradiation purposes. This category
     also includes underwater irradiators for
     irradiation of materials where the source
     is not exposed for irradiation purposes.
        Application............................  $3,600
    G. Licenses for possession and use of
     10,000 curies or more of byproduct
     material in sealed sources for irradiation
     of materials in which the source is
     exposed for irradiation purposes. This
     category also includes underwater
     irradiators for irradiation of materials
     where the source is not exposed for
     irradiation purposes.

[[Page 42632]]

 
        Application............................  $8,500
    H. Licenses issued under Subpart A of part
     32 of this chapter to distribute items
     containing byproduct material that require
     device review to persons exempt from the
     licensing requirements of part 30 of this
     chapter. The category does not include
     specific licenses authorizing
     redistribution of items that have been
     authorized for distribution to persons
     exempt from the licensing requirements of
     part 30 of this chapter:
        Application............................  $2,400
    I. Licenses issued under Subpart A of part
     32 of this chapter to distribute items
     containing byproduct material or
     quantities of byproduct material that do
     not require device evaluation to persons
     exempt from the licensing requirements of
     part 30 of this chapter. This category
     does not include specific licenses
     authorizing redistribution of items that
     have been authorized for distribution to
     persons exempt from the licensing
     requirements of part 30 of this chapter:
        Application............................  $3,600
    J. Licenses issued under Subpart B of part
     32 of this chapter to distribute items
     containing byproduct material that require
     sealed source and/or device review to
     persons generally licensed under part 31
     of this chapter. This category does not
     include specific licenses authorizing
     redistribution of items that have been
     authorized for distribution to persons
     generally licensed under part 31 of this
     chapter:
        Application............................  $1,100
    K. Licenses issued under Subpart B of part
     32 of this chapter to distribute items
     containing byproduct material or
     quantities of byproduct material that do
     not require sealed source and/or device
     review to persons generally licensed under
     part 31 of this chapter. This category
     does not include specific licenses
     authorizing redistribution of items that
     have been authorized for distribution to
     persons generally licensed under part 31
     of this chapter:
        Application............................  $620
    L. Licenses of broad scope for possession
     and use of byproduct material issued under
     parts 30 and 33 of this chapter for
     research and development that do not
     authorize commercial distribution:
        Application............................  $6,000
    M. Other licenses for possession and use of
     byproduct material issued under part 30 of
     this chapter for research and development
     that do not authorize commercial
     distribution:
        Application............................  $2,600
    N. Licenses that authorize services for
     other licensees, except:
        (1) Licenses that authorize only
         calibration and/or leak testing
         services are subject to the fees
         specified in fee Category 3P; and
        (2) Licenses that authorize waste
         disposal services are subject to the
         fees specified in fee Categories 4A,
         4B, and 4C:
            Application........................  $2,700
    O. Licenses for possession and use of
     byproduct material issued under part 34 of
     this chapter for industrial radiography
     operations:
        Application............................  $4,400
    P. All other specific byproduct material
     licenses, except those in Categories 4A
     through 9D:
        Application............................  $1,400
    Q. Registration of a device(s) generally
     licensed under part 31 of this chapter:
        Registration                             $450
4. Waste disposal and processing:
    A. Licenses specifically authorizing the
     receipt of waste byproduct material,
     source material, or special nuclear
     material from other persons for the
     purpose of contingency storage or
     commercial land disposal by the licensee;
     or licenses authorizing contingency
     storage of low-level radioactive waste at
     the site of nuclear power reactors; or
     licenses for receipt of waste from other
     persons for incineration or other
     treatment, packaging of resulting waste
     and residues, and transfer of packages to
     another person authorized to receive or
     dispose of waste material:
        Licensing and inspection...............  Full Cost.
    B. Licenses specifically authorizing the
     receipt of waste byproduct material,
     source material, or special nuclear
     material from other persons for the
     purpose of packaging or repackaging the
     material. The licensee will dispose of the
     material by transfer to another person
     authorized to receive or dispose of the
     material:
        Application............................  $1,800
    C. Licenses specifically authorizing the
     receipt of prepackaged waste byproduct
     material, source material, or special
     nuclear material from other persons. The
     licensee will dispose of the material by
     transfer to another person authorized to
     receive or dispose of the material:
        Application............................  $2,700
5. Well logging:
    A. Licenses for possession and use of
     byproduct material, source material, and/
     or special nuclear material for well
     logging, well surveys, and tracer studies
     other than field flooding tracer studies:
        Application............................  $5,900
    B. Licenses for possession and use of
     byproduct material for field flooding
     tracer studies:
        Licensing..............................  Full Cost.
6. Nuclear laundries:
    A. Licenses for commercial collection and
     laundry of items contaminated with
     byproduct material, source material, or
     special nuclear material:
        Application............................  $12,100
7. Medical licenses:
    A. Licenses issued under parts 30, 35, 40,
     and 70 of this chapter for human use of
     byproduct material, source material, or
     special nuclear material in sealed sources
     contained in teletherapy devices:
        Application............................  $6,600
    B. Licenses of broad scope issued to
     medical institutions or two or more
     physicians under parts 30, 33, 35, 40, and
     70 of this chapter authorizing research
     and development, including human use of
     byproduct material, except licenses for
     byproduct material, source material, or
     special nuclear material in sealed sources
     contained in teletherapy devices:

[[Page 42633]]

 
        Application............................  $4,700
    C. Other licenses issued under parts 30,
     35, 40, and 70 of this chapter for human
     use of byproduct material, source
     material, and/or special nuclear material,
     except licenses for byproduct material,
     source material, or special nuclear
     material in sealed sources contained in
     teletherapy devices:
        Application............................  $2,300
8. Civil defense:
    A. Licenses for possession and use of
     byproduct material, source material, or
     special nuclear material for civil defense
     activities:
        Application............................  $350
9. Device, product, or sealed source safety
 evaluation:
    A. Safety evaluation of devices or products
     containing byproduct material, source
     material, or special nuclear material,
     except reactor fuel devices, for
     commercial distribution:
        Application--each device...............  $5,600
    B. Safety evaluation of devices or products
     containing byproduct material, source
     material, or special nuclear material
     manufactured in accordance with the unique
     specifications of, and for use by, a
     single applicant, except reactor fuel
     devices:
        Application--each device...............  $5,600
    C. Safety evaluation of sealed sources
     containing byproduct material, source
     material, or special nuclear material,
     except reactor fuel, for commercial
     distribution:
        Application--each source...............  $1,700
    D. Safety evaluation of sealed sources
     containing byproduct material, source
     material, or special nuclear material,
     manufactured in accordance with the unique
     specifications of, and for use by, a
     single applicant, except reactor fuel:
        Application--each source...............  $580
10. Transportation of radioactive material:
    A. Evaluation of casks, packages, and
     shipping containers:
        Licensing and inspections..............  Full Cost.
    B. Evaluation of 10 CFR part 71 quality
     assurance programs:
        Application............................  $680
        Inspections............................  Full Cost.
11. Review of standardized spent fuel
 facilities:
    Licensing and inspection...................  Full Cost.
12. Special projects:
    Approvals and preapplication/Licensing       Full Cost.
     activities.
    Inspections................................  Full Cost.
13. A. Spent fuel storage cask Certificate of    Full Cost.
 Compliance: Licensing.
    B. Inspections related to spent fuel         Full Cost.
     storage cask Certificate of Compliance.
    C. Inspections related to storage of spent   Full Cost.
     fuel under Sec.  72.210 of this chapter.
14. Byproduct, source, or special nuclear
 material licenses and other approvals
 authorizing decommissioning, decontamination,
 reclamation, or site restoration activities
 under parts 30, 40, 70, 72, and 76 of this
 chapter:
    Licensing and inspection...................  Full Cost.
15. Import and Export licenses:
    Licenses issued under part 110 of this
     chapter for the import and export only of
     special nuclear material, source material,
     tritium and other byproduct material,
     heavy water, or nuclear grade graphite.
    A. Application for export or import of high
     enriched uranium and other materials,
     including radioactive waste, which must be
     reviewed by the Commissioners and the
     Executive Branch, for example, those
     actions under 10 CFR 110.40(b). This
     category includes application for export
     or import of radioactive wastes in
     multiple forms from multiple generators or
     brokers in the exporting country and/or
     going to multiple treatment, storage or
     disposal facilities in one or more
     receiving countries.
        Application--new license...............  $9,900
        Amendment..............................  $9,900
    B. Application for export or import of
     special nuclear material, source material,
     tritium and other byproduct material,
     heavy water, or nuclear grade graphite,
     including radioactive waste, requiring
     Executive Branch review but not
     Commissioner review. This category
     includes application for the export or
     import of radioactive waste involving a
     single form of waste from a single class
     of generator in the exporting country to a
     single treatment, storage and/or disposal
     facility in the receiving country.
        Application--new license...............  $5,800
        Amendment..............................  $5,800
    C. Application for export of routine
     reloads of low enriched uranium reactor
     fuel and exports of source material
     requiring only foreign government
     assurances under the Atomic Energy Act.
        Application--new license...............  $1,800
        Amendment..............................  $1,800
    D. Application for export or import of
     other materials, including radioactive
     waste, not requiring Commissioner review,
     Executive Branch review, or foreign
     government assurances under the Atomic
     Energy Act. This category includes
     application for export or import of
     radioactive waste where the NRC has
     previously authorized the export or import
     of the same form of waste to or from the
     same or similar parties, requiring only
     confirmation from the receiving facility
     and licensing authorities that the
     shipments may proceed according to
     previously agreed understandings and
     procedures.
        Application--new license...............  $1,200
        Amendment..............................  $1,200
    E. Minor amendment of any export or import
     license to extend the expiration date,
     change domestic information, or make other
     revisions which do not require in-depth
     analysis, review, or consultations with
     other agencies or foreign governments.
        Amendment..............................  $230
16. Reciprocity:

[[Page 42634]]

 
    Agreement State licensees who conduct
     activities under the reciprocity
     provisions of 10 CFR 150.20.
        Application............................  $1,400
------------------------------------------------------------------------
\1\ Types of fees--Separate charges, as shown in the schedule, will be
  assessed for pre-application consultations and reviews and
  applications for new licenses and approvals, issuance of new licenses
  and approvals, certain amendments and renewals to existing licenses
  and approvals, safety evaluations of sealed sources and devices,
  generally licensed device registrations, and certain inspections. The
  following guidelines apply to these charges:
(a) Application and registration fees. Applications for new materials
  licenses and export and import licenses; applications to reinstate
  expired, terminated, or inactive licenses except those subject to fees
  assessed at full costs; applications filed by Agreement State
  licensees to register under the general license provisions of 10 CFR
  150.20; and applications for amendments to materials licenses that
  would place the license in a higher fee category or add a new fee
  category must be accompanied by the prescribed application fee for
  each category.
(1) Applications for licenses covering more than one fee category of
  special nuclear material or source material must be accompanied by the
  prescribed application fee for the highest fee category.
(2) Applications for new licenses that cover both byproduct material and
  special nuclear material in sealed sources for use in gauging devices
  will pay the appropriate application fee for fee Category 1C only.
(b) Licensing fees. Fees for reviews of applications for new licenses
  and for renewals and amendments to existing licenses, for pre-
  application consultations and for reviews of other documents submitted
  to NRC for review, and for project manager time for fee categories
  subject to full cost fees (fee Categories 1A, 1B, 1E, 2A, 4A, 5B, 10A,
  11, 12, 13A, and 14) are due upon notification by the Commission in
  accordance with Sec.  170.12(b).
(c) Amendment fees. Applications for amendments to export and import
  licenses must be accompanied by the prescribed amendment fee for each
  license affected. An application for an amendment to a license or
  approval classified in more than one fee category must be accompanied
  by the prescribed amendment fee for the category affected by the
  amendment unless the amendment is applicable to two or more fee
  categories, in which case the amendment fee for the highest fee
  category would apply.
(d) Inspection fees. Inspections resulting from investigations conducted
  by the Office of Investigations and non-routine inspections that
  result from third-party allegations are not subject to fees.
  Inspection fees are due upon notification by the Commission in
  accordance with Sec.  170.12(c).
(e) Generally licensed device registrations under 10 CFR 31.5.
  Submittals of registration information must be accompanied by the
  prescribed fee.
\2\ Fees will not be charged for orders issued by the Commission under
  10 CFR 2.202 or for amendments resulting specifically from the
  requirements of these types of Commission orders. However, fees will
  be charged for approvals issued under a specific exemption provision
  of the Commission's regulations under Title 10 of the Code of Federal
  Regulations (e.g., 10 CFR 30.11, 40.14, 70.14, 73.5, and any other
  sections in effect now or in the future), regardless of whether the
  approval is in the form of a license amendment, letter of approval,
  safety evaluation report, or other form. In addition to the fee shown,
  an applicant may be assessed an additional fee for sealed source and
  device evaluations as shown in Categories 9A through 9D.
\3\ Full cost fees will be determined based on the professional staff
  time multiplied by the appropriate professional hourly rate
  established in Sec.  170.20 in effect at the time the service is
  provided, and the appropriate contractual support services expended.
  For applications currently on file for which review costs have reached
  an applicable fee ceiling established by the June 20, 1984, and July
  2, 1990, rules, but are still pending completion of the review, the
  cost incurred after any applicable ceiling was reached through January
  29, 1989, will not be billed to the applicant. Any professional staff-
  hours expended above those ceilings on or after January 30, 1989, will
  be assessed at the applicable rates established by Sec.  170.20, as
  appropriate, except for topical reports whose costs exceed $50,000.
  Costs which exceed $50,000 for each topical report, amendment,
  revision, or supplement to a topical report completed or under review
  from January 30, 1989, through August 8, 1991, will not be billed to
  the applicant. Any professional hours expended on or after August 9,
  1991, will be assessed at the applicable rate established in Sec.
  170.20.
\4\ Licensees paying fees under Categories 1A, 1B, and 1E are not
  subject to fees under Categories 1C and 1D for sealed sources
  authorized in the same license except for an application that deals
  only with the sealed sources authorized by the license.

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

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

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

    8. Section 171.3 is revised to read as follows:


Sec. 171.3.  Scope.

    The regulations in this part apply to any person holding a license 
for a power reactor, test reactor or research reactor issued under part 
50 of this chapter and to any person holding a combined license issued 
under part 52 of this chapter that authorizes operation of a power 
reactor. The regulations in this part also apply to any person holding 
a materials license as defined in this part, a Certificate of 
Compliance, a sealed source or device registration, a quality assurance 
program approval, and to a Government agency as defined in this part.

    9. In Sec. 171.5, the definition of Greater than Class C Waste or 
GTCC Waste is added in alphabetical order to read as follows:


Sec. 171.5  Definitions.

* * * * *
    Greater than Class C Waste or GTCC Waste means low-level 
radioactive waste that exceeds the concentration limits of 
radionuclides established for Class C waste in 10 CFR 61.55.
* * * * *

    10. In Sec. 171.11, paragraph (c) is revised to read as follows:


Sec. 171.11  Exemptions.

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

    11. Section 171.15 is revised to read as follows:


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

    (a) Each person licensed to operate a power, test, or research 
reactor; each person holding a part 50 power reactor

[[Page 42635]]

license that is in decommissioning or possession only status, except 
those that have no spent fuel on-site; and each person holding a part 
72 license who does not hold a part 50 license shall pay the annual fee 
for each license held at any time during the Federal FY in which the 
fee is due. This paragraph does not apply to test and research reactors 
exempted under Sec. 171.11(a).
    (b)(1) The FY 2002 annual fee for power reactors licensed to 
operate is $2,849,000.
    (2) The FY 2002 annual fee is comprised of a base annual fee for 
power reactors licensed to operate, a base spent fuel storage/reactor 
decommissioning annual fee, and associated additional charges 
(surcharges). The activities comprising the FY 2002 spent storage/
reactor decommissioning base annual fee are shown in paragraph 
(c)(2)(i) and (ii) of this section. The activities comprising the FY 
2002 surcharge are shown in paragraph (d)(1) of this section. The 
activities comprising the FY 2002 base annual fee for operating power 
reactors are as follows:
    (i) Power reactor safety and safeguards regulation except licensing 
and inspection activities recovered under part 170 of this chapter and 
generic reactor decommissioning activities.
    (ii) Research activities directly related to the regulation of 
power reactors, except those activities specifically related to reactor 
decommissioning.
    (iii) Generic activities required largely for NRC to regulate power 
reactors, e.g., updating part 50 of this chapter, or operating the 
Incident Response Center. The base annual fee for operating power 
reactors does not include generic activities specifically related to 
reactor decommissioning.
    (c)(1) The FY 2002 annual fee for each power reactor holding a part 
50 license that is in a decommissioning or possession only status and 
has spent fuel on-site and each independent spent fuel storage part 72 
licensee who does not hold a part 50 license is $239,000.
    (2) The FY 2002 annual fee is comprised of a base spent fuel 
storage/reactor decommissioning annual fee (which is also included in 
the operating power reactor annual fee shown in paragraph (b) of this 
section), and an additional charge (surcharge). The activities 
comprising the FY 2002 surcharge are shown in paragraph (d)(1) of this 
section. The activities comprising the FY 2002 spent fuel storage/
reactor decommissioning rebaselined annual fee are:
    (i) Generic and other research activities directly related to 
reactor decommissioning and spent fuel storage; and
    (ii) Other safety, environmental, and safeguards activities related 
to reactor decommissioning and spent fuel storage, except costs for 
licensing and inspection activities that are recovered under part 170 
of this chapter.
    (d)(1) The activities comprising the FY 2002 surcharge are as 
follows:
    (i) Low level waste disposal generic activities;
    (ii) Activities not attributable to an existing NRC licensee or 
class of licenses (e.g., international cooperative safety program and 
international safeguards activities, support for the Agreement State 
program, and site decommissioning management plan (SDMP) activities); 
and
    (iii) Activities not currently subject to 10 CFR part 170 licensing 
and inspection fees based on existing law or Commission policy, e.g., 
reviews and inspections conducted of nonprofit educational 
institutions, licensing actions for Federal agencies, and costs that 
would not be collected from small entities based on Commission policy 
in accordance with the Regulatory Flexibility Act, 5 U.S.C. 601 et seq.
    (2) The total FY 2002 surcharge allocated to the operating power 
reactor class of licenses is approximately $35.3 million, not including 
the amount allocated to the spent fuel storage/reactor decommissioning 
class. The FY 2002 operating power reactor surcharge to be assessed to 
each power reactor licensed to operate is approximately $339,400. This 
amount is calculated by dividing the total operating power reactor 
surcharge ($35.3 million) by the number of power reactors licensed to 
operate (104).
    (3) The FY 2002 surcharge allocated to the spent fuel storage/
reactor decommissioning class of licenses is approximately $3.3 
million. The FY 2002 spent fuel storage/reactor decommissioning 
surcharge to be assessed to each power reactor licensed to operate, 
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 $27,300. 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 2002 annual fees for licensees authorized to operate a 
non-power (test and research) reactor licensed under part 50 of this 
chapter, unless the reactor is exempted from fees under Sec. 171.11(a), 
are as follows:

 
 
 
Research reactor.............................................    $71,400
Test reactor.................................................     71,400
 

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


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

* * * * *
    (c) A licensee who is required to pay an annual fee under this 
section may qualify as a small entity. If a licensee qualifies as a 
small entity and provides the Commission with the proper certification 
along with its annual fee payment, the licensee may pay reduced annual 
fees as shown in the following table. Failure to file a small entity 
certification in a timely manner could result in the denial of any 
refund that might otherwise be due. The small entity fees are as 
follows:

------------------------------------------------------------------------
                                                               Maximum
                                                             annual  fee
                                                                 per
                                                               licensed
                                                               category
------------------------------------------------------------------------
Small businesses not engaged in manufacturing and small not-
 for-profit organizations (gross annual receipts):
    $350,000 to $5 million.................................       $2,300
    Less than $350,000.....................................          500
Manufacturing entities that have an average of 500
 employees or less:
    35 to 500 employees....................................        2,300
    Less than 35 employees.................................          500
Small governmental jurisdictions (including publicly
 supported educational institutions) (population):
    20,000 to 50,000.......................................        2,300
    Less than 20,000.......................................          500
Educational institutions that are not State or publicly
 supported, and have 500 employees or less:
    35 to 500 employees....................................        2,300
    Less than 35 employees.................................          500
------------------------------------------------------------------------

    (1) A licensee qualifies as a small entity if it meets the size 
standards established by the NRC (See 10 CFR 2.810).
    (2) A licensee who seeks to establish status as a small entity for 
the purpose of paying the annual fees required under this section must 
file a certification statement with the NRC. The licensee must file the 
required certification on NRC Form 526 for each license under which it 
is billed. NRC Form 526 can be accessed through the NRC's web site at

[[Page 42636]]

http://www.nrc.gov. For licensees who cannot access the NRC's web site, 
NRC Form 526 may be obtained through the local point of contact listed 
in the NRC's ``Materials Annual Fee Billing Handbook,'' NUREG/BR-0238, 
which is enclosed with each annual fee billing. The form can also be 
obtained by calling the fee staff at 301-415-7554, or by e-mailing the 
fee staff at <[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 2002 annual fees are comprised of a base annual fee and 
an additional charge (surcharge). The activities comprising the FY 2002 
surcharge are shown for convenience in paragraph (e) of this section. 
The FY 2002 annual fees for materials licensees and holders of 
certificates, registrations or approvals subject to fees under this 
section are shown in the following table:

   Schedule of Materials Annual Fees and Fees for Government Agencies
                             Licensed by NRC
                     [See footnotes at end of table]
------------------------------------------------------------------------
             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.....................      $3,834,000
            Nuclear Fuel Services SNM-124...............       3,834,000
        (b) Low Enriched Uranium in Dispersible Form
         Used for Fabrication of Power Reactor Fuel:
            General Electric Company SNM-1097...........       1,286,000
            Siemens Nuclear Power SNM-1227..............       1,286,000
            Westinghouse Electric Company SNM-1107......       1,286,000
    (2) All other special nuclear materials licenses not
     included in Category 1.A.(1) which are licensed for
     fuel cycle activities.
        (a) Facilities with limited operations:                  505,000
         Framatome ANP SNM-1168.........................
        (b) All Others: General Electric SNM-960........         367,000
    B. Licenses for receipt and storage of spent fuel           \11\ N/A
     and reactor-related Greater than Class C (GTCC)
     waste at an independent spent fuel storage
     installation (ISFSI)...............................
    C. Licenses for possession and use of special                  1,500
     nuclear material in sealed sources contained in
     devices used in industrial measuring systems,
     including x-ray fluorescence analyzers.............
    D. All other special nuclear material licenses,                3,600
     except licenses authorizing special nuclear
     material in unsealed form in combination that would
     constitute a critical quantity, as defined in Sec.
     150.11 of this chapter, for which the licensee
     shall pay the same fees as those for Category
     1.A.(2)............................................
    E. Licenses or certificates for the operation of a         2,387,000
     uranium enrichment facility........................
2. Source material:
    A. (1) Licenses for possession and use of source             551,000
     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\..........................          77,900
        Class II facilities \4\.........................          65,200
        Other facilities \4\............................          68,600
    (3) Licenses that authorize the receipt of byproduct          48,000
     material, as defined in Section 11e.(2) of the
     Atomic Energy Act, from other persons for
     possession and disposal, except those licenses
     subject to the fees in Category 2A(2) or Category
     2A(4)..............................................
    (4) Licenses that authorize the receipt of byproduct           7,600
     material, as defined in Section 11e.(2) of the
     Atomic Energy Act, from other persons for
     possession and disposal incidental to the disposal
     of the uranium waste tailings generated by the
     licensee's milling operations, except those
     licenses subject to the fees in Category 2A(2).....
    B. Licenses that authorize only the possession, use              750
     and/or installation of source material for
     shielding..........................................
    C. All other source material licenses...............          12,200
3. Byproduct material:
    A. Licenses of broad scope for possession and use of          22,400
     byproduct material issued under parts 30 and 33 of
     this chapter for processing or manufacturing of
     items containing byproduct material for commercial
     distribution.......................................
    B. Other licenses for possession and use of                    5,700
     byproduct material issued under part 30 of this
     chapter for processing or manufacturing of items
     containing byproduct material for commercial
     distribution.......................................
    C. Licenses issued under Secs.  32.72, 32.73, and/or          14,000
     32.74 of this chapter authorizing the processing or
     manufacturing and distribution or redistribution of
     radiopharmaceuticals, generators, reagent kits and/
     or sources and devices containing byproduct
     material. This category also includes the
     possession and use of source material for shielding
     authorized under part 40 of this chapter when
     included on the same license. This category does
     not apply to licenses issued to nonprofit
     educational institutions whose processing or
     manufacturing is exempt under Sec.  171.11(a)(1).
     These licenses are covered by fee Category 3D......
    D. Licenses and approvals issued under Secs.  32.72,           4,500
     32.73, and/or 32.74 of this chapter authorizing
     distribution or redistribution of
     radiopharmaceuticals, generators, reagent kits and/
     or sources or devices not involving processing of
     byproduct material. This category includes licenses
     issued under Secs.  32.72, 32.73 and 32.74 of this
     chapter to nonprofit educational institutions whose
     processing or manufacturing is exempt under Sec.
     171.11(a)(1). This category also includes the
     possession and use of source material for shielding
     authorized under part 40 of this chapter when
     included on the same license.......................
    E. Licenses for possession and use of byproduct                3,600
     material in sealed sources for irradiation of
     materials in which the source is not removed from
     its shield (self-shielded units)...................

[[Page 42637]]

 
    F. Licenses for possession and use of less than                6,500
     10,000 curies of byproduct material in sealed
     sources for irradiation of materials in which the
     source is exposed for irradiation purposes. This
     category also includes underwater irradiators for
     irradiation of materials in which the source is not
     exposed for irradiation purposes...................
    G. Licenses for possession and use of 10,000 curies           23,100
     or more of byproduct material in sealed sources for
     irradiation of materials in which the source is
     exposed for irradiation purposes. This category
     also includes underwater irradiators for
     irradiation of materials in which the source is not
     exposed for irradiation purposes...................
    H. Licenses issued under Subpart A of part 32 of               3,700
     this chapter to distribute items containing
     byproduct material that require device review to
     persons exempt from the licensing requirements of
     part 30 of this chapter, except specific licenses
     authorizing redistribution of items that have been
     authorized for distribution to persons exempt from
     the licensing requirements of part 30 of this
     chapter............................................
    I. Licenses issued under Subpart A of part 32 of               5,200
     this chapter to distribute items containing
     byproduct material or quantities of byproduct
     material that do not require device evaluation to
     persons exempt from the licensing requirements of
     part 30 of this chapter, except for specific
     licenses authorizing redistribution of items that
     have been authorized for distribution to persons
     exempt from the licensing requirements of part 30
     of this chapter....................................
    J. Licenses issued under Subpart B of part 32 of               2,400
     this chapter to distribute items containing
     byproduct material that require sealed source and/
     or device review to persons generally licensed
     under part 31 of this chapter, except specific
     licenses authorizing redistribution of items that
     have been authorized for distribution to persons
     generally licensed under part 31 of this chapter...
    K. Licenses issued under Subpart B of part 31 of               1,600
     this chapter to distribute items containing
     byproduct material or quantities of byproduct
     material that do not require sealed source and/or
     device review to persons generally licensed under
     part 31 of this chapter, except specific licenses
     authorizing redistribution of items that have been
     authorized for distribution to persons generally
     licensed under part 31 of this chapter.............
    L. Licenses of broad scope for possession and use of          11,200
     byproduct material issued under parts 30 and 33 of
     this chapter for research and development that do
     not authorize commercial distribution..............
    M. Other licenses for possession and use of                    4,800
     byproduct material issued under part 30 of this
     chapter for research and development that do not
     authorize commercial distribution..................
    N. Licenses that authorize services for other
     licensees, except:
        (1) Licenses that authorize only calibration and/
         or leak testing services are subject to the
         fees specified in fee Category 3P; and
        (2) Licenses that authorize waste disposal                 5,300
         services are subject to the fees specified in
         fee Categories 4A, 4B, and 4C..................
    O. Licenses for possession and use of byproduct               13,700
     material issued under part 34 of this chapter for
     industrial radiography operations. This category
     also includes the possession and use of source
     material for shielding authorized under part 40 of
     this chapter when authorized on the same license...
    P. All other specific byproduct material licenses,             2,700
     except those in Categories 4A through 9D...........
    Q. Registration of devices generally licensed               \13\ N/A
     pursuant to part 31 of this chapter................
4. Waste disposal and processing:
    A. Licenses specifically authorizing the receipt of          \5\ N/A
     waste byproduct material, source material, or
     special nuclear material from other persons for the
     purpose of contingency storage or commercial land
     disposal by the licensee; or licenses authorizing
     contingency storage of low-level radioactive waste
     at the site of nuclear power reactors; or licenses
     for receipt of waste from other persons for
     incineration or other treatment, packaging of
     resulting waste and residues, and transfer of
     packages to another person authorized to receive or
     dispose of waste material..........................
    B. Licenses specifically authorizing the receipt of           10,300
     waste byproduct material, source material, or
     special nuclear material from other persons for the
     purpose of packaging or repackaging the material.
     The licensee will dispose of the material by
     transfer to another person authorized to receive or
     dispose of the material............................
    C. Licenses specifically authorizing the receipt of
     prepackaged waste byproduct material, source
     material, or special nuclear material from other
     persons............................................
    The licensee will dispose of the material by                   8,000
     transfer to another person authorized to receive or
     dispose of the material............................
5. Well logging:
    A. Licenses for possession and use of byproduct               10,000
     material, source material, and/or special nuclear
     material for well logging, well surveys, and tracer
     studies other than field flooding tracer studies...
    B. Licenses for possession and use of byproduct              \5\ N/A
     material for field flooding tracer studies.........
6. Nuclear laundries:
    A. Licenses for commercial collection and laundry of          19,100
     items contaminated with byproduct material, source
     material, or special nuclear material..............
7. Medical licenses:
    A. Licenses issued under parts 30, 35, 40, and 70 of          15,400
     this chapter for human use of byproduct material,
     source material, or special nuclear material in
     sealed sources contained in teletherapy devices.
     This category also includes the possession and use
     of source material for shielding when authorized on
     the same license...................................
    B. Licenses of broad scope issued to medical                  26,100
     institutions or two or more physicians under parts
     30, 33, 35, 40, and 70 of this chapter authorizing
     research and development, including human use of
     byproduct material except licenses for byproduct
     material, source material, or special nuclear
     material in sealed sources contained in teletherapy
     devices. This category also includes the possession
     and use of source material for shielding when
     authorized on the same license\9\..................
    C. Other licenses issued under parts 30, 35, 40, and           5,100
     70 of this chapter for human use of byproduct
     material, source material, and/or special nuclear
     material except licenses for byproduct material,
     source material, or special nuclear material in
     sealed sources contained in teletherapy devices.
     This category also includes the possession and use
     of source material for shielding when authorized on
     the same license\9\................................
8. Civil defense:
    A. Licenses for possession and use of byproduct                1,200
     material, source material, or special nuclear
     material for civil defense activities..............

[[Page 42638]]

 
9. Device, product, or sealed source safety evaluation:
    A. Registrations issued for the safety evaluation of           6,700
     devices or products containing byproduct material,
     source material, or special nuclear material,
     except reactor fuel devices, for commercial
     distribution.......................................
    B. Registrations issued for the safety evaluation of           6,700
     devices or products containing byproduct material,
     source material, or special nuclear material
     manufactured in accordance with the unique
     specifications of, and for use by, a single
     applicant, except reactor fuel devices.............
    C. Registrations issued for the safety evaluation of           2,000
     sealed sources containing byproduct material,
     source material, or special nuclear material,
     except reactor fuel, for commercial distribution...
    D. Registrations issued for the safety evaluation of             690
     sealed sources containing byproduct material,
     source material, or special nuclear material,
     manufactured in accordance with the unique
     specifications of, and for use by, a single
     applicant, except reactor fuel.....................
10. Transportation of radioactive material:
    A. Certificates of Compliance or other package
     approvals issued for design of casks, packages, and
     shipping containers.
        Spent Fuel, High-Level Waste, and plutonium air          \6\ N/A
         packages.......................................
        Other Casks.....................................         \6\ N/A
    B. Quality assurance program approvals issued under
     part 71 of this chapter.
        Users and Fabricators...........................          72,900
        Users...........................................           7,300
11. Standardized spent fuel facilities..................         \6\ N/A
12. Special Projects....................................         \6\ N/A
13. A. Spent fuel storage cask Certificate of Compliance         \6\ N/A
    B. General licenses for storage of spent fuel under         \12\ N/A
     10 CFR 72.210......................................
14. Byproduct, source, or special nuclear material               \7\ N/A
 licenses and other approvals authorizing
 decommissioning, decontamination, reclamation, or site
 restoration activities under parts 30, 40, 70, 72, and
 76 of this chapter.....................................
15. Import and Export licenses..........................         \8\ N/A
16. Reciprocity.........................................         \8\ N/A
17. Master materials licenses of broad scope issued to           283,000
 Government agencies....................................
18. Department of Energy:
    A. Certificates of Compliance.......................  \10\ 1,370,000
    B. Uranium Mill Tailing Radiation Control Act              1,058,000
     (UMTRCA) activities................................
------------------------------------------------------------------------
\1\ Annual fees will be assessed based on whether a licensee held a
  valid license with the NRC authorizing possession and use of
  radioactive material during the current fiscal year. However, the
  annual fee is waived for those materials licenses and holders of
  certificates, registrations, and approvals who either filed for
  termination of their licenses or approvals or filed for possession
  only/storage licenses prior to October 1, 2001, and permanently ceased
  licensed activities entirely by September 30, 2001. Annual fees for
  licensees who filed for termination of a license, downgrade of a
  license, or for a possession only license during the fiscal year and
  for new licenses issued during the fiscal year will be prorated in
  accordance with the provisions of Sec.  171.17. If a person holds more
  than one license, certificate, registration, or approval, the annual
  fee(s) will be assessed for each license, certificate, registration,
  or approval held by that person. For licenses that authorize more than
  one activity on a single license (e.g., human use and irradiator
  activities), annual fees will be assessed for each category applicable
  to the license. Licensees paying annual fees under Category 1A(1) are
  not subject to the annual fees for Category 1C and 1D for sealed
  sources authorized in the license.
\2\ Payment of the prescribed annual fee does not automatically renew
  the license, certificate, registration, or approval for which the fee
  is paid. Renewal applications must be filed in accordance with the
  requirements of parts 30, 40, 70, 71, 72, or 76 of this chapter.
\3\ Each fiscal year, fees for these materials licenses will be
  calculated and assessed in accordance with Sec.  171.13 and will be
  published in the Federal Register for notice and comment.
\4\ A Class I license includes mill licenses issued for the extraction
  of uranium from uranium ore. A Class II license includes solution
  mining licenses (in-situ and heap leach) issued for the extraction of
  uranium from uranium ores including research and development licenses.
  An ``other'' license includes licenses for extraction of metals, heavy
  metals, and rare earths.
\5\ There are no existing NRC licenses in these fee categories. If NRC
  issues a license for these categories, the Commission will consider
  establishing an annual fee for this type of license.
\6\ Standardized spent fuel facilities, 10 CFR parts 71 and 72
  Certificates of Compliance, and special reviews, such as topical
  reports, are not assessed an annual fee because the generic costs of
  regulating these activities are primarily attributable to users of the
  designs, certificates, and topical reports.
\7\ Licensees in this category are not assessed an annual fee because
  they are charged an annual fee in other categories while they are
  licensed to operate.
\8\ No annual fee is charged because it is not practical to administer
  due to the relatively short life or temporary nature of the license.
\9\ Separate annual fees will not be assessed for pacemaker licenses
  issued to medical institutions who also hold nuclear medicine licenses
  under Categories 7B or 7C.
\10\ This includes Certificates of Compliance issued to DOE that are not
  under the Nuclear Waste Fund.
\11\ See Sec.  171.15(c).
\12\ See Sec.  171.15(c).
\13\ No annual fee is charged for this category because the cost of the
  general license registration program will be recovered through 10 CFR
  part 170 fees.

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

[[Page 42639]]

Regulatory Flexibility Act, 5 U.S.C. 601 et seq.).

    Dated at Rockville, Maryland, this 13th day of June, 2002.

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

    Note: This Appendix will not appear in the Code of Federal 
Regulations.

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

I. Background

    The Regulatory Flexibility Act (RFA), as amended, (5 U.S.C. 601 
et seq.) requires that agencies consider the impact of their 
rulemakings on small entities and, consistent with applicable 
statutes, consider alternatives to minimize these impacts on the 
businesses, organizations, and government jurisdictions to which 
they apply.
    The NRC has established standards for determining which NRC 
licensees qualify as small entities (10 CFR 2.810). 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 by 2 
percent per year beginning in FY 2001, until the fee recovery amount 
is 90 percent in FY 2005. In addition, for FY 2002, $36 million has 
been appropriated from the General Fund, and therefore not subject 
to fee recovery, for activities related to homeland security. The 
amount to be recovered for FY 2002 is approximately $479.5 million.
    OBRA-90 requires that the schedule of charges established by 
rule should fairly and equitably allocate the total amount to be 
recovered from the NRC's licensees and be assessed under the 
principle that licensees who require the greatest expenditure of 
agency resources pay the greatest annual charges. Since FY 1991, the 
NRC has complied with OBRA-90 by issuing a final rule that amends 
its fee regulations. These final rules have established the 
methodology used by NRC in identifying and determining the fees to 
be assessed and collected in any given fiscal year.
    In FY 1995, the NRC announced that, in order to stabilize fees, 
annual fees would be adjusted only by the percentage change (plus or 
minus) in NRC's total budget authority, adjusted for changes in 
estimated collections for 10 CFR part 170 fees, the number of 
licensees paying annual fees, and as otherwise needed to assure the 
billed amounts resulted in the required collections. The NRC 
indicated that if there were a substantial change in the total NRC 
budget authority or the magnitude of the budget allocated to a 
specific class of licenses, the annual fee base would be 
recalculated.
    In FY 2001, the NRC concluded that there had been significant 
changes in the allocation of agency resources among the various 
classes of licenses and established rebaselined annual fees for FY 
2001.
    Based on the change in the magnitude of the budget to be 
recovered through fees, the Commission has determined that it is 
appropriate to rebaseline its part 171 annual fees again in FY 2002. 
Rebaselining fees results in increased annual fees for a majority of 
the categories of licenses, and decreased annual fees for other 
categories.
    The Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA) is intended to reduce regulatory burdens imposed by Federal 
agencies on small businesses, nonprofit organizations, and 
governmental jurisdictions. SBREFA also provides Congress with the 
opportunity to review agency rules before they go into effect. Under 
this legislation, the NRC annual fee rule is considered a ``major'' 
rule and must be reviewed by Congress and the Comptroller General 
before the rule becomes effective. SBREFA also requires that an 
agency prepare a guide to assist small entities in complying with 
each rule for which a final regulatory flexibility analysis is 
prepared. This Regulatory Flexibility Analysis (RFA) and the small 
entity compliance guide (Attachment 1) have been prepared for the FY 
2002 fee rule as required by law.

II. Impact on Small Entities

    The fee rule results in substantial fees being charged to those 
individuals, organizations, and companies that are licensed by the 
NRC, including those licensed under the NRC materials program. The 
comments received on previous proposed fee rules and the small 
entity certifications received in response to previous final fee 
rules indicate that NRC licensees qualifying as small entities under 
the NRC's size standards are primarily materials licensees. 
Therefore, this analysis will focus on the economic impact of the 
annual fees on materials licensees. About 20 percent of these 
licensees (approximately 1,300 licensees for FY 2001) have requested 
small entity certification in the past. A 1993 NRC survey of its 
materials licensees indicated that about 25 percent of these 
licensees could qualify as small entities under the NRC's size 
standards.
    The commenters on previous fee rulemakings consistently 
indicated that the following results would occur if the proposed 
annual fees were not modified:
    1. Large firms would gain an unfair competitive advantage over 
small entities. Commenters noted that small and very small companies 
(``Mom and Pop'' operations) would find it more difficult to absorb 
the annual fee than a large corporation or a high-volume type of 
operation. In competitive markets, such as soils testing, annual 
fees would put small licensees at an extreme competitive 
disadvantage with their much larger competitors because the proposed 
fees would be the same for a two-person licensee as for a large firm 
with thousands of employees.
    2. Some firms would be forced to cancel their licenses. A 
licensee with receipts of less than $500,000 per year stated that 
the proposed rule would, in effect, force it to relinquish its soil 
density gauge and license, thereby reducing its ability to do its 
work effectively. Other licensees, especially well-loggers, noted 
that the increased fees would force small businesses to get rid of 
the materials license altogether. Commenters stated that the 
proposed rule would result in about 10 percent of the well-logging 
licensees terminating their licenses immediately and approximately 
25 percent terminating their licenses before the next annual 
assessment.
    3. Some companies would go out of business.
    4. Some companies would have budget problems. Many medical 
licensees noted that, along with reduced reimbursements, the 
proposed increase of the existing fees and the introduction of 
additional fees would significantly affect their budgets. Others 
noted that, in view of the cuts by Medicare and other third party 
carriers, the fees would produce a hardship and some facilities 
would experience a great deal of difficulty in meeting this 
additional burden.
    Approximately 3,000 license, approval, and registration 
terminations have been requested since the NRC first established 
annual fees for materials licenses. Although some of these 
terminations were requested because the license was no longer needed 
or licenses or registrations could be combined, indications are that 
other termination requests were due to the economic impact of the 
fees.
    To alleviate the significant impact of the annual fees on a 
substantial number of small entities, the NRC considered the 
following alternatives in accordance with the RFA, in developing 
each of its fee rules since FY 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

[[Page 42640]]

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 FY 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 FY 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 FY 1992, the NRC introduced a second, lower tier to the small 
entity fee in response to concerns that the $1,800 fee, when added 
to the license and inspection fees, still imposed a significant 
impact on small entities with relatively low gross annual receipts. 
For purposes of the annual fee, each small entity size standard was 
divided into an upper and lower tier. Small entity licensees in the 
upper tier continued to pay an annual fee of $1,800 while those in 
the lower tier paid an annual fee of $400.
    Based on the changes that had occurred since FY 1991, the NRC 
re-analyzed its maximum small entity annual fees in FY 2000, and 
determined that the small entity fees should be increased by 25 
percent to reflect the increase in the average fees paid by other 
materials licensees since FY 1991 as well as changes in the fee 
structure for materials licensees. The structure of the fees that 
NRC charged to its materials licensees changed during the period 
between 1991 and 1999. Costs for materials license inspections, 
renewals, and amendments, which were previously recovered through 
part 170 fees for services, are now included in the part 171 annual 
fees assessed to materials licensees. As a result, the maximum small 
entity annual fee increased from $1,800 to $2,300 in FY 2000. By 
increasing the maximum annual fee for small entities from $1,800 to 
$2,300, the annual fee for many small entities was reduced while at 
the same time materials licensees, including small entities, would 
pay for most of the costs attributable to them. The costs not 
recovered from small entities are allocated to other materials 
licensees and to power reactors.
    While reducing the impact on many small entities, the NRC 
determined that the maximum annual fee of $2,300 for small entities 
may continue to have a significant impact on materials licensees 
with annual gross receipts in the thousands of dollars range. 
Therefore, the NRC continued to provide a lower-tier small entity 
annual fee for small entities with relatively low gross annual 
receipts, and for manufacturing concerns and educational 
institutions not State or publicly supported, with less than 35 
employees. The NRC also increased the lower tier small entity fee by 
the same percentage increase to the maximum small entity annual fee. 
This 25 percent increase resulted in the lower tier small entity fee 
increasing from $400 to $500 in FY 2000.
    Unlike the annual fees assessed to other licensees, the small 
entity fees are not designed to recover the agency costs associated 
with particular licensees; rather, they are designed to provide some 
fee relief for qualifying small entity licensees while at the same 
time recovering from those licensees some of the agency's costs for 
activities that benefit them. The costs not recovered from small 
entities must be recovered from other licensees. The current small 
entity fees of $500 and $2,300 provide considerable relief to many 
small entities.
    As stated in the FY 2001 Regulatory Flexibility Analysis, (66 FR 
32452; June 14, 2001), the NRC will re-examine the small entity fees 
every two years, in the same years in which it conducts the biennial 
review of fees as required by the CFO Act, instead of each year that 
annual fees are rebaselined as indicated in the FY 2000 fee rule (65 
FR 36946; June 12, 2000). Therefore, the FY 2002 small entity annual 
fee will remain at $2,300, and the lower tier small entity annual 
fee will remain at $500. The NRC plans to re-examine the small 
entity fees in FY 2003.

IV. Summary

    The NRC has determined that the 10 CFR part 171 annual fees 
significantly impact a substantial number of small entities. A 
maximum fee for small entities strikes a balance between the 
requirement to recover 96 percent of the NRC budget and the 
requirement to consider means of reducing the impact of the fee on 
small entities. On the basis of its regulatory flexibility analysis, 
the NRC concludes that a maximum annual fee of $2,300 for small 
entities and a lower-tier small entity annual fee of $500 for small 
businesses and not-for-profit organizations with gross annual 
receipts of less than $350,000, small governmental jurisdictions 
with a population of less than 20,000, small manufacturing entities 
that have less than 35 employees, and educational institutions that 
are not State or publicly supported and have less than 35 employees 
reduces the impact on small entities. At the same time, these 
reduced annual fees are consistent with the objectives of OBRA-90. 
Thus, the fees for small entities maintain a balance between the 
objectives of OBRA-90 and the RFA. Therefore, the analysis and 
conclusions established in the FY 2001 fee rule remain valid for FY 
2002.

Attachment 1 to Appendix A

U.S. Nuclear Regulatory Commission, Small Entity Compliance Guide, 
Fiscal Year 2002

Contents

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

Introduction

    The Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA) requires all Federal agencies to prepare a written guide 
for each ``major'' final rule as defined by the Act. The NRC's fee 
rule, published annually to comply with the Omnibus Budget 
Reconciliation Act of 1990 (OBRA-90), as amended, is considered a 
``major'' rule under SBREFA. Therefore, in compliance with the law, 
this guide has been prepared to assist NRC material licensees in 
complying with the FY 2002 fee rule.
    Licensees may use this guide to determine whether they qualify 
as a small entity under NRC regulations and are eligible to pay 
reduced FY 2002 annual fees assessed under 10 CFR part 171. The NRC 
has established two tiers of separate annual fees for those 
materials licensees who qualify as small entities under NRC's size 
standards.
    Licensees who meet NRC's size standards for a small entity must 
submit a completed NRC Form 526 ``Certification of Small Entity 
Status for the Purposes of Annual Fees Imposed Under 10 CFR part 
171'' to qualify for the reduced annual fee. This form can be 
accessed on the NRC's Web site at http://www.nrc.gov. The form can 
then be accessed by selecting ``License Fees'' and under ``Forms'' 
selecting NRC Form 526. For licensees who cannot access the NRC's 
Web site, NRC Form 526 may be obtained through the local point of 
contact listed in the NRC's ``Materials Annual Fee Billing 
Handbook,'' NUREG/BR-0238, which is enclosed with each annual fee 
billing. Alternatively, the form may be obtained by calling the fee 
staff at 301-415-7554, or by e-mailing the fee staff at 
[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;

[[Page 42641]]

    3. Small organizations--a not-for-profit organization which is 
independently owned and operated and has annual gross receipts of $5 
million or less;
    4. Small governmental jurisdiction--a government of a city, 
county, town, township, village, school district or special district 
with a population of less than 50,000;
    5. Small educational institution--an educational institution 
supported by a qualifying small governmental jurisdiction, or one 
that is not state or publicly supported and has 500 or fewer 
employees.\1\
---------------------------------------------------------------------------

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

    To further assist licensees in determining if they qualify as a 
small entity, we are providing the following guidelines, which are 
based on the Small Business Administration's regulations (13 CFR 
part 121).
    1. A small business concern is an independently owned and 
operated entity which is not considered dominant in its field of 
operations.
    2. The number of employees means the total number of employees 
in the parent company, any subsidiaries and/or affiliates, including 
both foreign and domestic locations (i.e., not solely the number of 
employees working for the licensee or conducting NRC licensed 
activities for the company).
    3. Gross annual receipts includes all revenue received or 
accrued from any source, including receipts of the parent company 
and 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. 
Licensees can access this form on the NRC's Web site at http://www.nrc.gov. The form can then be accessed by selecting ``License 
Fees'' and under ``Forms'' selecting NRC Form 526. Those licensees 
that qualify as a ``small entity'' under the NRC size standards at 
10 CFR Part 2.810 can complete the form in accordance with the 
instructions provided, and submit the completed form and the 
appropriate payment to the address provided on the invoice. For 
licensees who cannot access the NRC's Web site, NRC Form 526 may be 
obtained through the local point of contact listed in the NRC's 
``Materials Annual Fee Billing Handbook,'' NUREG/BR-0238, which is 
enclosed with each annual fee invoice. Alternatively, licensees may 
obtain the form by calling the fee staff at 301-415-7544, or by e-
mailing us at [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. 02-15591 Filed 6-21-02; 8:45 am]
BILLING CODE 7590-01-P