[Federal Register Volume 68, Number 64 (Thursday, April 3, 2003)]
[Proposed Rules]
[Pages 16374-16395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-7814]



[[Page 16373]]

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Part IV





Nuclear Regulatory Commission





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10 CFR Parts 170 and 171



Revision of Fee Schedules; Fee Recovery for FY 2003; Proposed Rule

  Federal Register / Vol. 68, No. 64 / Thursday, April 3, 2003 / 
Proposed Rules  

[[Page 16374]]


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NUCLEAR REGULATORY COMMISSION

10 CFR Parts 170 and 171

RIN: 3150-AH14


Revision of Fee Schedules; Fee Recovery for FY 2003

AGENCY: Nuclear Regulatory Commission.

ACTION: Proposed rule.

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SUMMARY: The Nuclear Regulatory Commission (NRC) is proposing to amend 
the licensing, inspection, and annual fees charged to its applicants 
and licensees. The proposed amendments are necessary to implement the 
Omnibus Budget Reconciliation Act of 1990 (OBRA-90), as amended, which 
requires that the NRC recover approximately 94 percent of its budget 
authority in fiscal year (FY) 2003, less the amounts appropriated from 
the Nuclear Waste Fund (NWF). The amount to be recovered for FY 2003 is 
approximately $526.3 million.

DATES: The comment period expires May 5, 2003. Comments received after 
this date will be considered if it is practical to do so, but the NRC 
is able to ensure only that comments received on or before this date 
will be considered. Because OBRA-90 requires that the NRC collect the 
FY 2003 fees by September 30, 2003, requests for extensions of the 
comment period will not be granted.

ADDRESSES: Mail written comments to: Secretary, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555-0001, ATTN: Rulemakings and 
Adjudications Staff. Hand deliver comments to: 11555 Rockville Pike, 
Rockville, Maryland 20852, between 7:30 am and 4:15 pm Federal 
workdays. (Telephone 301-415-1966). Comments may be faxed to (301) 415-
1101.
    Comments may also be submitted via the NRC's 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 NRC's rulemaking site, contact Ms. 
Carol Gallagher, 301-415-5905; e-mail [email protected].
    With the exception of restricted information, documents created or 
received at the NRC after November 1, 1999, are also 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].
    In addition to being available in ADAMS, the agency workpapers that 
support these proposed changes to 10 CFR parts 170 and 171 may also be 
examined during the 30-day comment period at the NRC Public Document 
Room, Room O-1F22, One White Flint North, 11555 Rockville Pike, 
Rockville, MD 20852-2738.

FOR FURTHER INFORMATION CONTACT: Robert Carlson, telephone 301-415-
8165; or Ann Norris, telephone 301-415-7807; Office of the Chief 
Financial Officer, U.S. Nuclear Regulatory Commission, Washington, DC 
20555-0001.

SUPPLEMENTARY INFORMATION:

I. Background
II. Proposed Action
III. Plain Language
IV. Voluntary Consensus Standards
V. Environmental Impact: Categorical Exclusion
VI. Paperwork Reduction Act Statement
VII. Regulatory Analysis
VIII. Regulatory Flexibility Analysis
IX. Backfit Analysis

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 budgeted costs 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 94 percent of its FY 2003 budget authority, less the 
amounts appropriated from the NWF, through fees. In the Energy and 
Water Development Appropriation Act, 2003, contained in the 
Consolidated Appropriations Resolution, 2003 (Public Law 108-7), 
Congress appropriated $584.6 million to the NRC for FY 2003. The total 
amount NRC is required to recover for FY 2003 is approximately $526.3 
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. Proposed Action

    The NRC is proposing to amend its licensing, inspection, and annual 
fees to recover approximately 94 percent of its FY 2003 budget 
authority, including the budget authority for its Office of the 
Inspector General, less the appropriations received from the NWF. The 
NRC's total budget authority for FY 2003 is $584.6 million, of which 
approximately $24.7 million has been appropriated from the NWF. Based 
on the 94 percent fee recovery requirement, the NRC must recover 
approximately $526.3 million in FY 2003 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 2003 is $46.8 million more than the amount estimated 
for recovery in FY 2002.
    The NRC estimates that approximately $124.7 million will be 
recovered in FY 2003 from part 170 fees and other offsetting receipts. 
For FY 2003, the NRC also estimates a net adjustment of approximately 
$1.9 million for FY 2003 invoices that the NRC estimates will not be 
paid during the fiscal year, and for payments received in FY 2003 for 
FY 2002 invoices. The remaining $399.7 million would be recovered 
through the part 171 annual fees, compared to $345.6 million for FY 
2002.
    A primary reason for the increase in total fees, as well as the 
annual fee amount, for FY 2003 compared to FY 2002 is that the amount 
to be recovered for FY 2003 includes $29.3 million for homeland 
security activities, whereas the FY 2002 funding for homeland security 
was excluded from fees. While the President's FY 2003 budget requested 
that NRC's funding for homeland security activities continue to be 
excluded from the fee base, the Energy and Water Development

[[Page 16375]]

Appropriations Act, 2003, contained in the Consolidated Appropriations 
Resolution, 2003 (Public Law 108-7), included NRC's budget for homeland 
security activities in the fee base. Therefore, the proposed FY 2003 
fees include the $29.3 million budgeted for NRC's homeland security 
activities. Other reasons for the fee increases include the 2003 
Federal pay raise, and the increased workload for new reactor licensing 
activities and reactor license renewal.
    Table I summarizes the budget and fee recovery amounts for FY 2003. 
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 2003
                          [Dollars in millions]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Budget Authority......................................    $584.6
    Less NWF................................................     -24.7
                                                             -----------
        Balance.............................................    $559.9
    Fee Recovery Rate for FY 2003...........................    x 94.0%
                                                             -----------
Total Amount to be Recovered For FY 2003....................    $526.3
    Less Carryover from FY 2002.............................      -0
                                                             -----------
Amount to be Recovered Through Fees and Other Receipts......    $526.3
    Less Estimated Part 170 Fees and Other Receipts.........    -124.7
                                                             -----------
Part 171 Fee Collections Required...........................    $401.6
Part 171 Billing Adjustments:
    Unpaid FY 2003 Invoices (estimated).....................       2.4
    Less Payments Received in FY 2003 for Prior Year              -4.3
     Invoices (estimated)...................................
                                                             -----------
        Subtotal............................................      -1.9
                                                             ===========
Adjusted Part 171 Collections Required......................    $399.7
------------------------------------------------------------------------

    The FY 2003 final fee rule will be a ``major'' final action as 
defined by the Small Business Regulatory Enforcement Fairness Act of 
1996. Therefore, the NRC's fees for FY 2003 would become effective 60 
days after publication of the final rule in the Federal Register. The 
NRC will send an invoice for the amount of the annual fee to reactors 
and major fuel cycle facilities upon publication of the FY 2003 final 
rule. For these licensees, payment would be due on the effective date 
of the FY 2003 rule. Those materials licensees whose license 
anniversary date during FY 2003 falls before the effective date of the 
final FY 2003 rule would be billed for the annual fee during the 
anniversary month of the license at the FY 2002 annual fee rate. Those 
materials licensees whose license anniversary date falls on or after 
the effective date of the final FY 2003 rule would be billed for the 
annual fee at the FY 2003 annual fee rate during the anniversary month 
of the license, and payment would be due on the date of the invoice.
    As a matter of courtesy, the NRC plans to continue mailing the 
proposed fee rule to all licensees, although, in accordance with its FY 
1998 announcement, the NRC has discontinued mailing the final fee rule 
to all licensees as a cost-saving measure. Accordingly, the NRC does 
not plan to routinely mail the FY 2003 final fee 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]. The NRC plans to publish the 
final fee rule in June 2003. 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 proposing to make changes to 10 CFR parts 170 and 171 as 
discussed in Sections A and B below.

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

    The NRC is proposing to establish the hourly rates used to 
calculate fees and to adjust the part 170 fees based on the proposed 
hourly rates and the results of the agency's biennial review of fees 
required by the Chief Financial Officer (CFO) Act of 1990 (Pub. L. 101-
578, November 15, 1990, 104 Stat. 2838). Additionally, the NRC is 
proposing to revise fee category 15.A. of Sec.  170.31 to cover all 
categories of radioactive waste import license applications and to 
revise category 15.B. to remove the radioactive waste import license 
applications.
    The proposed amendments are as follows:
1. Hourly Rates
    The NRC is proposing to establish in Sec.  170.20 the two 
professional hourly rates for NRC staff time. These proposed rates 
would be based on the number of FY 2003 direct program full time 
equivalents (FTEs) and the FY 2003 NRC budget, excluding direct program 
support costs and NRC's appropriations from the NWF. These rates are 
used to determine the part 170 fees. The proposed rate for the reactor 
program is $156 per hour ($276,661 per direct FTE). This rate would be 
applicable to all activities for which fees are assessed under Sec.  
170.21 of the fee regulations. The proposed rate for the materials 
program (nuclear materials and nuclear waste programs) is $158 per hour 
($280,876 per direct FTE). This rate would be applicable to all 
activities for which fees are assessed under Sec.  170.31 of the fee 
regulations. In the FY 2002 final fee rule, the reactor and materials 
program rates were $156 and $152, respectively.
    A major reason for the 4 percent increase to the materials program 
rate is the salary and benefits increase that results primarily from 
the Government-wide pay raise. While salary and benefits also increase 
for the reactor

[[Page 16376]]

program, the increase is offset by a reduction in the average overhead 
cost per direct FTE.
    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.

   Table II.--FY 2003 Budget Authority To Be Included in Hourly Rates
------------------------------------------------------------------------
                                                Reactor      Materials
                                                program       program
------------------------------------------------------------------------
Direct Program Salaries & Benefits                 $134.1         $34.4
 (millions)................................
Overhead Salaries and Benefits, Program              62.3          17.1
 Travel and Other Support (millions).......
Allocated Agency Management and Support             118.5          31.1
 (millions)................................
                                            ---------------
        Subtotal (millions)................        $314.9         $82.6
Less offsetting receipts (million).........         -0 .1          -0.00
                                            ---------------
    Total Budget Included in Hourly Rate           $314.8         $82.6
     (millions)............................
                                            ===============
Program Direct FTEs........................       1,138.0         294.1
Rate per Direct FTE........................    $276,661      $280,876
Professional Hourly Rate (Rate per direct          $156          $158
 FTE divided by 1,776 hours)...............
------------------------------------------------------------------------

    As shown in Table II, dividing the $314.8 million budgeted amount 
(rounded) included in the hourly rate for the reactor program by the 
reactor program direct FTEs (1138.0) results in a rate for the reactor 
program of $276,661 per FTE for FY 2003. The Direct FTE Hourly Rate for 
the reactor program would be $156 per hour (rounded to the nearest 
whole dollar). This rate is calculated by dividing the cost per direct 
FTE ($276,661) 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 $82.6 million budgeted 
amount (rounded) included in the hourly rate for the materials program 
by the program direct FTEs (294.1) results in a rate of $280,876 per 
FTE for FY 2003. The Direct FTE Hourly Rate for the materials program 
would be $158 per hour (rounded to the nearest whole dollar). This rate 
is calculated by dividing the cost per direct FTE ($280,876) by the 
number of productive hours in one year (1,776 hours).
2. Fee Adjustments
    The NRC is proposing to adjust the current part 170 fees in 
Sec. Sec.  170.21 and 170.31 to reflect both the proposed hourly rates 
and the results of the biennial review of part 170 fees required by the 
CFO Act. To comply with the requirements of the CFO Act, the NRC has 
evaluated historical professional staff hours used to process a new 
license application for those materials licensees whose fees are based 
on the average cost method, or ``flat'' fees. This review also included 
new license and amendment applications for import and export licenses.
    Evaluation of the historical data shows that fees based on the 
average number of professional staff hours required to complete 
licensing actions in the materials program should be increased in some 
categories and decreased in others to more accurately reflect current 
costs incurred in completing these licensing actions. The data for the 
average number of professional staff hours needed to complete new 
licensing actions was last updated in FY 2001 (66 FR 32452; June 14, 
2001). Thus, the revised average professional staff hours in this 
proposed fee rule reflect the changes in the NRC licensing review 
program that have occurred since FY 2001.
    As a result of the biennial review, the proposed licensing fees 
that are based on the average professional staff hours reflect an 
increase in average time for new license applications for six of the 33 
materials program fee categories, a decrease in average time for eight 
fee categories, and the same average time for the remaining 19 fee 
categories. Similarly, the average time for applications for new export 
and import licenses and for amendments to export and import licenses 
remained the same for eight fee categories in Sec. Sec.  170.21 and 
170.31, and decreased for two other fee categories.
    The proposed licensing fees for 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 are based on 
the revised average professional staff hours needed to process the 
licensing actions multiplied by the proposed materials program 
professional hourly rate for FY 2003.
    The biennial review also included the ``flat'' fee for the general 
license registrations covered by fee Category 3.Q. As a result of this 
review, the proposed fee per registration is $620, compared to the 
current fee of $450. The proposed fee is based on the current estimated 
number of registrants, current annual resource estimates for the 
program, and the FY 2003 materials program FTE rate. This increase to 
the current fee of $450 is based on experience with the registrations 
to date, which indicates that the average cost per registrant is higher 
than originally estimated. The next biennial review of the registration 
fee will be included in the FY 2005 fee rule; however, the registration 
fee may change in the FY 2004 fee rule if there is a change to the 
materials program FTE rate for FY 2004.
    The amounts of the materials licensing ``flat'' fees are rounded as 
follows: fees under $1,000 are rounded

[[Page 16377]]

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. Applications filed on 
or after the effective date of the final rule would be subject to the 
revised fees in this proposed rule.
    The NRC is also proposing to expand fee Category 15.A. of Sec.  
170.31 to include all categories of radioactive waste import license 
applications, and to modify Category 15.B. of Sec.  170.31 to exclude 
these types of import license applications. This change is being 
proposed because all applications for the import of radioactive waste 
must be reviewed by the Executive Branch and require the involvement of 
all states and compacts, as well as extensive coordination within the 
NRC. Therefore, the NRC efforts for the waste import license 
applications are more closely aligned with the efforts for the other 
types of export and import licenses currently covered by Category 15.A.
    In summary, the NRC is proposing to amend 10 CFR part 170 to--
    1. Establish the materials and reactor programs FTE hourly rates;
    2. Revise the licensing fees to be assessed to reflect the reactor 
and materials program hourly rates and to comply with the CFO Act 
requirement that fees be reviewed biennially and revised as necessary 
to reflect the cost to the agency;
    3. Revise Category 15.A. of Sec.  170.31 to include radioactive 
waste import licenses, and exclude these types of applications from 
Category 15.B.

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 proposes to revise the annual fees for FY 2003 as follows.
1. Annual Fees
    The NRC is proposing to establish rebaselined annual fees for FY 
2003. 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), 
determined 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 2002. 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 would result in increased annual fees compared to FY 
2002 for four classes of licenses (power reactors, spent fuel storage/
reactor decommissioning, fuel facilities, and rare earth facilities), 
and decreased annual fees for two classes (non-power reactors and 
uranium recovery). For the small materials users and transportation 
classes, some categories of licenses would have increased annual fees 
and others would have decreased annual fees.
    The annual fees in Sec. Sec.  171.15 and 171.16 would be revised 
for FY 2003 to recover approximately 94 percent of the NRC's FY 2003 
budget authority, less the estimated amount to be recovered through 
part 170 fees and the amounts appropriated from the NWF. The total 
amount to be recovered through annual fees for FY 2003 is $399.7 
million, compared to $345.6 million for FY 2002.
    Within the fee classes, the proposed FY 2003 annual fees would 
increase for many categories of licenses, decrease for other 
categories, and for one category remain the same from the previous 
year. The two largest categories of materials licensees (which together 
include nearly 3,500 of NRC's approximately 4,900 materials user 
licenses) show annual fee decreases compared to FY 2002 of 7.4 percent 
and 9.8 percent. The increases in annual fees range from approximately 
1.0 percent (for licenses authorizing receipt of radioactive waste for 
packaging and transfer to others for disposal) to approximately 175 
percent (for rare earth facilities). The decreases in annual fees range 
from approximately 1.0 percent for DOE's transportation activities to 
approximately 53 percent for materials licenses authorizing 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). The fees remain the same for materials licenses 
authorizing possession and use of byproduct material in sealed sources 
for irradiation of materials where the source is not removed from its 
shield.
    Factors affecting the changes to the annual fee amounts include 
adjustments in budgeted costs for the different classes of licenses 
(including the addition of budgeted costs for NRC's homeland security 
activities), the reduction in the fee recovery rate from 96 percent for 
FY 2002 to 94 percent for FY 2003, the estimated part 170 collections 
for the various classes of licenses, the increased hourly rate for the 
materials and waste program, and decreases in the numbers of licensees 
for certain categories of licenses. In addition, there is no carryover 
from FY 2002 to reduce the FY 2003 fees. The FY 2002 fees were reduced 
by a $1.7 million carryover from FY 2001.
    Table IV below shows the proposed rebaselined annual fees for FY 
2003 for representative categories of licenses.

             Table IV.--Rebaselined Annual Fees for FY 2003
------------------------------------------------------------------------
                                                            Proposed FY
               Class/category of licenses                  2003  Annual
                                                                fee
------------------------------------------------------------------------
Operating Power Reactors (including Spent Fuel Storage/       $3,278,000
 Reactor Decommissioning annual fee)....................
Spent Fuel Storage/Reactor Decommissioning..............         309,000
Nonpower Reactors.......................................          68,300
High Enriched Uranium Fuel Facility.....................       5,836,000
Low Enriched Uranium Fuel Facility......................       1,957,000
UF6 Conversion Facility.................................         839,000
Uranium Mills...........................................          64,800
Transportation:
    Users/Fabricators...................................          75,000
    Users Only..........................................           7,000

[[Page 16378]]

 
Typical Materials Users:
    Radiographers.......................................          12,300
    Well Loggers........................................           4,700
    Gauge Users.........................................           2,500
    Broad Scope Medical.................................          24,900
------------------------------------------------------------------------

    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 2003 will be reduced by about 
$33.6 million. The total FY 2003 budgeted costs for these activities 
and the reduction to the total surcharge amount 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 2003
                     Category of costs                         budgeted
                                                                costs
------------------------------------------------------------------------
1. Activities not attributable to an existing NRC licensee
 or class of licensee:
    a. International activities............................        $10.3
    b. Agreement State oversight...........................          8.8
    c. Low-level waste disposal generic activities.........          2.7
    d. Site decommissioning management plan activities not           3.6
     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          6.7
    b. Licensing and inspection activities associated with           2.9
     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..............         13.4
    b. Generic decommissioning/reclamation (except those             4.9
     related to power reactors)............................
                                                            ------------
        Total surcharge costs..............................         57.8
Less 6 percent of NRC's FY 2003 total budget (less NWF)....        -33.6
                                                            ------------
        Total Surcharge Costs to be Recovered..............        $24.2
------------------------------------------------------------------------

    As shown in Table V, $24.2 million would be the total surcharge 
cost allocated to the various classes of licenses for FY 2003. The NRC 
would continue 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 would continue to allocate the 
LLW surcharge costs based on the volume of LLW disposed of by certain 
classes of licenses. The proposed surcharge costs allocated to each 
class would be included in the annual fee assessed to each licensee. 
The FY 2003 proposed surcharge costs that would be 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         2.0        79.3        17.1        19.1
Spent Fuel Storage/Reactor Decomm....................  .........  ..........         8.2         1.8         1.8
Nonpower Reactors....................................  .........  ..........         0.1         0.0         0.0
Fuel Facilities......................................          8         0.2         6.7         1.4         1.6
Materials Users......................................         18         0.5         3.8         0.8         1.3
Transportation.......................................  .........  ..........         1.2         0.3         0.3
Rare Earth Facilities................................  .........  ..........         0.2         0.0         0.0
Uranium Recovery.....................................  .........  ..........         0.7         0.1         0.1
                                                      ------------

[[Page 16379]]

 
    Total Surcharge..................................        100         2.7       100.0        21.5        24.2
----------------------------------------------------------------------------------------------------------------

    The budgeted costs allocated to each class of licenses and the 
calculations of the rebaselined fees are described in A. through H. 
below. The workpapers which support this proposed rule show in detail 
the allocation of NRC's budgeted resources for each class of licenses 
and how the fees are calculated. The workpapers are available 
electronically at the NRC's Electronic Reading Room on the Internet at 
Web site address http://www.gov/reading-rm/adams.html. During the 30-
day public comment period, the workpapers 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.
    a. Fuel Facilities. The proposed annual fees for the fuel facility 
class reflect increased budgeted costs for activities that are not 
subject to cost recovery under part 170, primarily homeland security 
activities related to fuel facilities. Such activities include the 
issuance and follow-up of orders directing the fuel facility licensees 
to take interim compensatory measures to increase security, and a 
series of risk-informed vulnerability assessments the NRC is conducting 
on fuel facilities.
    The FY 2003 budgeted costs of approximately $27.0 million to be 
recovered in annual fees assessed to the fuel facility class is 
allocated to the individual fuel facility licensees based on the 
effort/fee determination matrix established in the FY 1999 final fee 
rule (64 FR 31448; June 10, 1999). In the matrix (which is included in 
the NRC workpapers that are publicly available), 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 licensees, current licensees, licensees in 
unique license situations, and certificate holders.
    The methodology is adaptable to 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, it may result in a change of 
category for a particular fuel facility licensee as a result of the 
methodology used in the fuel facility effort/fee matrix. Consequently, 
this change may also have an effect on the fees assessed to other fuel 
facility licensees and certificate holders. For example, if a fuel 
facility licensee amends its license/certificate in such a way (e.g., 
decommissioning or license termination) that results in them not being 
subject to part 171 costs applicable to the fee class, then the 
budgeted costs for the safety and/or safeguards components would be 
spread among the remaining fuel facility licensees/certificate holders, 
resulting in higher fees for those affected licensees.
    The methodology is applied as follows. First, a fee category is 
assigned based on the nuclear material and activity authorized by 
license or certificate. Although a licensee/certificate holder may 
elect not to fully utilize a license/certificate, the license/
certificate is still used as the source for determining authorized 
nuclear material possession and use/activity. Next, the category and 
license/certificate information are used to determine where the 
licensee/certificate holder fits into the matrix. The matrix depicts 
the categorization of licensees/certificate holders by authorized 
material types and use/activities, and the relative generic regulatory 
programmatic effort associated with each category. The programmatic 
effort (expressed as a value in the matrix) reflects the safety and 
safeguards risk significance associated with the nuclear material and 
use/activity, and the commensurate generic regulatory program (i.e., 
scope, depth and rigor) level of effort.
    The effort factors for the various subclasses of fuel facility 
licenses are summarized in Table VII.

                                 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 $27.0 million total annual fee amount for the fuel 
facility class results in the proposed annual fees for each licensee 
within the subcategories of this class summarized in Table VIII.

          Table VIII.--Proposed Annual Fees for Fuel Facilities
------------------------------------------------------------------------
                                                            Proposed FY
                      Facility type                         2003 annual
                                                                fee
------------------------------------------------------------------------
High Enriched Uranium Fuel..............................      $5,836,000
Uranium Enrichment......................................       3,634,000

[[Page 16380]]

 
Low Enriched Uranium....................................       1,957,000
UF6 Conversion..........................................         839,000
Limited Operations Facility.............................         769,000
Others..................................................         559,000
------------------------------------------------------------------------

    b. Uranium Recovery Facilities. The FY 2003 budgeted costs, 
including surcharge costs, to be recovered through annual fees assessed 
to the uranium recovery class is approximately $1.5 million. 
Approximately $1.0 million of this amount would be assessed to DOE. The 
remaining $0.5 million would be recovered through annual fees assessed 
to conventional mills, in-situ leach solution mining facilities, and 
11e.(2) mill tailings disposal facilities.
    Consistent with the change in methodology adopted in the FY 2002 
final fee rule (67 FR 42612; June 24, 2002), the total annual fee 
amount, less the amounts specifically budgeted for Title I activities, 
is allocated equally between Title I and Title II licensees. This would 
result 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 would 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................................   $393,227
    50% of generic/other uranium recovery budgeted costs.....    495,513
    50% of uranium recovery surcharge........................     70,829
                                                              ----------
        Total Annual Fee Amount for DOE......................    959,569
Annual Fee Amount for UMTRCA Title II Specific Licenses:
    50% of generic/other uranium recovery budgeted costs.....    495,513
    50% of uranium recovery surcharge........................     70,829
                                                              ----------
        Total Annual Fee Amount for Title II Specific            566,342
         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 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, Total
                                                               Number of     Category            weight
                        Facility type                          facilities     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 $0.5 million in budgeted costs to be 
recovered from Title II specific licensees results in the following 
proposed annual fees:

          Table X.--Annual Fees for Title II Specific Licenses
------------------------------------------------------------------------
                                                            Proposed FY
                      Facility type                         2003 annual
                                                                fee
------------------------------------------------------------------------
Class I (conventional mills)............................         $64,800
Class II (solution mining)..............................          54,300
11e.(2) disposal........................................          40,000
11e.(2) disposal incidental to existing tailings sites..           6,300
------------------------------------------------------------------------


[[Page 16381]]

    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 2003 exceed the amount of the revised 
annual fee, the overpayment will be refunded; if the amounts collected 
in the first three quarters are less than the final revised annual fee, 
the remainder will be billed after the FY 2003 final fee rule is 
published. 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 $308.8 million in budgeted 
costs to be recovered through FY 2003 annual fees assessed to the power 
reactor class, which includes NRC's budgeted costs for homeland 
security activities related to power reactors, would be divided equally 
among the 104 power reactors licensed to operate. This results in a 
proposed FY 2003 annual fee of $2,969,000 per reactor. Additionally, 
each power reactor licensed to operate would be assessed the proposed 
FY 2003 spent fuel storage/reactor decommissioning annual fee of 
$309,000. This would result in a total FY 2003 annual fee of $3,278,000 
for each power reactor licensed to operate.
    d. Spent Fuel Storage/Reactor Decommissioning. For FY 2003, 
budgeted costs of approximately $37.3 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 costs would be divided equally among the 121 licensees, 
resulting in a proposed FY 2003 annual fee of $309,000 per licensee.
    e. Non-power Reactors. Approximately $273,000 in budgeted costs is 
to be recovered through annual fees assessed to the non-power reactor 
class of licenses for FY 2003. This amount would be divided equally 
among the four non-power reactors subject to annual fees. This results 
in a proposed FY 2003 annual fee of $68,300 for each licensee.
    f. Rare Earth Facilities. The FY 2003 budgeted costs of 
approximately $377,000 for rare earth facilities to be recovered 
through annual fees would be divided equally among the two licensees 
who have a specific license for receipt and processing of source 
material. Prior to the beginning of FY 2003, one rare earth facility 
permanently ceased operations and requested that its license be amended 
to authorize decommissioning activities only. Consequently, this 
license is no longer subject to annual fees. The result is a proposed 
FY 2003 annual fee of $189,000 for each of the two remaining rare earth 
facilities.
    g. Materials Users. To equitably and fairly allocate the $23.9 
million in FY 2003 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 
$18.0 million in general costs and is 1.18 for FY 2003. The inspection 
multiplier is the multiple necessary to recover approximately $4.5 
million in inspection costs for FY 2003, and is 0.92 for FY 2003. The 
unique category costs are any special costs that the NRC has budgeted 
for a specific category of licenses. For FY 2003, approximately $65,300 
in budgeted costs for the implementation of revised part 35, Medical 
Use of Byproduct Material (unique costs), has been allocated to holders 
of NRC human use licenses.
    The annual fee assessed to each licensee also includes a share of 
the $800,000 in surcharge costs allocated to the materials user class 
of licenses and, for certain categories of these licenses, a share of 
the approximately $500,000 in LLW surcharge costs allocated to the 
class. The proposed annual fee for each fee category is shown in Sec.  
171.16(d).
    h. Transportation. Off the approximately $5.0 million in FY 2003 
budgeted costs to be recovered through annual fees assessed to the 
transportation class of licenses (including homeland security costs), 
approximately $1.4 million would be recovered from annual fees assessed 
to DOE based on the number of part 71 Certificates of Compliance that 
it holds. Of the remaining $3.6 million, approximately 25 percent would 
be allocated to the 89 quality assurance plans authorizing use only and 
the 40 quality assurance plans authorizing use and design/fabrication. 
The remaining 75 percent would be allocated only to the 40 quality 
assurance plans authorizing use and design/fabrication. This results in 
a proposed annual fee of $7,000 for each of the holders of quality 
assurance plans that authorize use only, and a proposed annual fee of 
$75,000 for each of the holders of quality assurance plans that 
authorize use and design/fabrication.
2. Small Entity Annual Fees
    The NRC stated in the FY 2001 fee rule (66 FR 32452; June 14, 
2001), that it would 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. Accordingly, the NRC has re-examined the small 
entity fees, and does not believe that a change to the small entity 
fees is warranted for FY 2003. The revision to the small entity fees in 
FY 2000 (65 FR 36946; June 12, 2000) was based on the 25 percent 
increase in average total fees assessed to other materials licensees in 
selected categories since the small entity fees were first established 
and changes that had occurred in the fee structure for materials 
licensees over time.
    Unlike the annual fees assessed to other licensees, the small 
entity fees are not designed to recover the agency costs associated 
with particular licensees. Instead, the reduced fees for small entities 
are designed to provide some fee relief for qualifying small entity 
licensees while at the same time recovering from them some of the 
agency's costs for activities that benefit them. The costs not 
recovered from small entities for activities that benefit them must be 
recovered from other licensees. Given the reduction in annual fees and 
the relative low inflation rates, the NRC has determined that the 
current small entity fees of $500 and $2,300 continue to meet the 
objective of providing relief to many small entities while recovering 
from them some of the costs that benefit them.
    Therefore, the NRC is proposing to retain the $2,300 small entity 
annual fee and the $500 lower tier small entity

[[Page 16382]]

annual fee for FY 2003. The NRC plans to re-examine the small entity 
fees again in FY 2005.
    In summary, the NRC is proposing to--
    1. Establish rebaselined annual fees for FY 2003;
    2. Retain the current reduced fees for small entities.

III. Plain Language

    The Presidential Memorandum dated June 1, 1998, entitled, ``Plain 
Language in Government Writing,'' directed that the Federal 
government's writing be in plain language (63 FR 31883; June 10, 1998). 
The NRC requests comments on this proposed rule specifically with 
respect to the clarity and effectiveness of the language used. Comments 
on the language used should be sent to the NRC as indicated under the 
ADDRESSES heading.

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 proposed rule, the NRC is amending the 
licensing, inspection, and annual fees charged to its licensees and 
applicants as necessary to recover approximately 94 percent of its 
budget authority in FY 2003 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 proposed 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 proposed 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 proposed 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 proposed rule was developed 
pursuant to Title V of the Independent Offices Appropriation Act of 
1952 (IOAA) (31 U.S.C. 9701) and the Commission's fee guidelines. When 
developing these guidelines the Commission took into account guidance 
provided by the U.S. Supreme Court on March 4, 1974, in 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 2003 is 94 percent. To comply with 
this statutory requirement and in accordance with Sec.  171.13, the NRC 
is publishing the proposed amount of the FY 2003 annual fees for 
reactor licensees, fuel cycle licensees, materials licensees, and 
holders of Certificates of Compliance, registrations of sealed source 
and devices and QA program approvals, and Government agencies. OBRA-90, 
consistent with the accompanying Conference Committee Report, and the 
amendments to OBRA-90, provides that--
    (1) The annual fees be based on approximately 94 percent of the 
Commission's FY 2003 budget of $584.6 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.
    10 CFR part 171, which established annual fees for operating power 
reactors effective October 20, 1986 (51 FR 33224; September 18, 1986), 
was challenged and upheld in its entirety in Florida Power and Light 
Company v. United States, 846 F.2d 765 (D.C. Cir. 1988), cert. denied, 
490 U.S. 1045 (1989). Further, the NRC's FY 1991 annual fee rule 
methodology was upheld by the D.C. Circuit Court of Appeals in Allied 
Signal v. NRC, 988 F.2d 146 (D.C. Cir. 1993).

VIII. Regulatory Flexibility Analysis

    The NRC is required by the Omnibus Budget Reconciliation Act of 
1990, as amended, to recover approximately 94 percent of its FY 2003 
budget authority through the assessment of user fees. This act further 
requires that the NRC establish a schedule of charges that

[[Page 16383]]

fairly and equitably allocates the aggregate amount of these charges 
among licensees.
    This proposed rule would establish the schedules of fees that are 
necessary to implement the Congressional mandate for FY 2003. The 
proposed rule would result in increases in the annual fees charged to 
certain licensees and holders of certificates, registrations, and 
approvals, and decreases in annual fees for others. 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 proposed rule.
    The Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA) was signed into law on March 29, 1996. The SBREFA requires all 
Federal agencies to prepare a written compliance guide for each rule 
for which the agency is required by 5 U.S.C. 604 to prepare a 
regulatory flexibility analysis. Therefore, in compliance with the law, 
Attachment 1 to the Regulatory Flexibility Analysis is the small entity 
compliance guide for FY 2003.

IX. Backfit Analysis

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

List of Subjects

10 CFR Part 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. 553, the NRC is proposing to 
adopt the following amendments to 10 CFR parts 170 and 171.

PART 170--FEES FOR FACILITIES, MATERIALS, IMPORT AND EXPORT 
LICENSES, AND OTHER

    REGULATORY SERVICES UNDER THE ATOMIC ENERGY ACT OF 1954, AS AMENDED
    1. The authority citation for part 170 continues to read as 
follows:

    Authority: 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 170.20 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 Sec. Sec.  170.21 
and 170.31 will be calculated using the following applicable 
professional staff-hour rates:

(a) Reactor Program (Sec.  170.21 Activities)--$156 per hour
(b) Nuclear Materials and Nuclear Waste Program (Sec.  170.31 
Activities)--$158 per hour

    3. In Sec.  170.21, Category K in the table is revised to read as 
follows:


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

* * * * *

                        Schedule of Facility Fees
                     [See footnotes at end of table]
------------------------------------------------------------------------
          Facility categories and type of fees             Fees \1,\ \2\
------------------------------------------------------------------------
 
                              * * * * * * *
K. Import and export licenses:
    Licenses for the import and export only of
     production and utilization facilities or the export
     only of components for production and utilization
     facilities issued under 10 CFR part 110.
        1. Application for import or export of reactors
         and other facilities and exports of components
         which must be reviewed by the Commissioners and
         the Executive Branch, for example, actions
         under 10 CFR 110.40(b). This category includes
         application for import of radioactive waste.
            Application-new license.....................         $10,300
            Amendment...................................         $10,300
        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). This category includes
         application for the export of radioactive
         waste.
            Application-new license.....................          $6,000
            Amendment...................................          $6,000
        3. Application for export of components
         requiring foreign government assurances only.
            Application-new license.....................          $1,900
            Amendment...................................          $1,900
        4. Application for export of facility components
         and equipment not requiring Commissioner
         review, Executive Branch review, or foreign
         government assurances.
            Application-new license.....................          $1,300
            Amendment...................................          $1,300

[[Page 16384]]

 
        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...................................           $240
------------------------------------------------------------------------
\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.

* * * * *
    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\                              Fee \2\ \3\
------------------------------------------------------------------------
1. Special nuclear material:
    A. Licenses for possession and use of 200
     grams or more of plutonium in unsealed
     form or 350 grams or more of contained U-
     235 in unsealed form or 200 grams or more
     of U-233 in unsealed form. This includes
     applications to terminate licenses as well
     as licenses authorizing possession only:
        Licensing and Inspection...............  Full Cost.
    B. Licenses for receipt and storage of
     spent fuel and 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............................  $730.
    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............................  $1,500.
    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.

[[Page 16385]]

 
    C. All other source material licenses:
        Application............................  $6,200.
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............................  $7,400.
    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............................  $2,900.
    C. Licenses issued under Sec.  Sec.
     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............................  $6,100.
    D. Licenses and approvals issued under Sec.
      Sec.   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 Sec.  Sec.   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............................  $2,700.
    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............................  $3,700.
    G. Licenses for possession and use of
     10,000 curies or more of byproduct
     material in sealed sources for irradiation
     of materials in which the source is
     exposed for irradiation purposes. This
     category also includes underwater
     irradiators for irradiation of materials
     where the source is not exposed for
     irradiation purposes.
        Application............................  $8,800.
    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............................  $4,300.
    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............................  $4,300.
    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............................  $650.
    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............................  $6,200.
    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............................  $3,000.
    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........................  $3,300.
    O. Licenses for possession and use of
     byproduct material issued under part 34 of
     this chapter for industrial radiography
     operations:
        Application............................  $3,300.
    P. All other specific byproduct material
     licenses, except those in Categories 4A
     through 9D:
        Registration...........................  $1,200.
    Q. Registration of a device(s) generally
     licensed under part 31 of this chapter:
        Application............................  $620.
4. Waste disposal and processing:

[[Page 16386]]

 
    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............................  $1,900.
    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............................  $2,800.
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............................  $2,000.
    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............................  $12,600.
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............................  $6,900.
    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:
        Application............................  $4,900.
    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............................  $1,900.
8. Civil defense:
    A. Licenses for possession and use of
     byproduct material, source material, or
     special nuclear material for civil defense
     activities:
        Application............................  $360.
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...............  $5,700.
    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...............  $5,700.
    C. Safety evaluation of sealed sources
     containing byproduct material, source
     material, or special nuclear material,
     except reactor fuel, for commercial
     distribution:
        Application--each source...............  $1,800.
    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...............  $600.
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............................  $2,100.
        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
 Compliance:
        Licensing..............................  Full Cost.
    B. Inspections related to spent fuel         Full Cost.
     storage cask Certificate of Compliance
    C. Inspections related to storage of spent   Full Cost.
     fuel under Sec.   72.210 of this chapter
14. Byproduct, source, or special nuclear
 material licenses and other approvals
 authorizing decommissioning, decontamination,
 reclamation, or site restoration activities
 under parts 30, 40, 70, 72, and 76 of this
 chapter:
        Licensing and inspection...............  Full Cost.

[[Page 16387]]

 
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 import of
         radioactive waste.
            Application--new license...........  $10,300.
            Amendment..........................  $10,300.
        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 of radioactive waste.
            Application--new license...........  $6,000.
            Amendment..........................  $6,000.
        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...........  $1,900.
            Amendment..........................  $1,900.
        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...........  $1,300.
            Amendment..........................  $1,300.
        E. Minor amendment of any export or
         import license to extend the
         expiration date, change domestic
         information, or make other revisions
         which do not require in-depth
         analysis, review, or consultations
         with other agencies or foreign
         governments.
            Amendment..........................  $240.
16. Reciprocity:
    Agreement State licensees who conduct
     activities under the reciprocity
     provisions of 10 CFR 150.20.
        Application............................  $1,500.
------------------------------------------------------------------------
\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.


[[Page 16388]]

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


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

* * * * *
    (b)(1) The FY 2003 annual fee for each operating power reactor 
which must be collected by September 30, 2003, is $3,278,000.
    (2) The FY 2003 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 2003 spent storage/
reactor decommissioning base annual fee are shown in paragraph 
(c)(2)(i) and (ii) of this section. The activities comprising the FY 
2003 surcharge are shown in paragraph (d)(1) of this section. The 
activities comprising the FY 2003 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 2003 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 $309,000.
    (2) The FY 2003 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 2003 surcharge are shown in paragraph (d)(1) of this 
section. The activities comprising the FY 2003 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 2003 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 2003 surcharge allocated to the operating power 
reactor class of licenses is $19.1 million, not including the amount 
allocated to the spent fuel storage/reactor decommissioning class. The 
FY 2003 operating power reactor surcharge to be assessed to each 
operating power reactor is approximately $183,300. This amount is 
calculated by dividing the total operating power reactor surcharge 
($19.1 million) by the number of operating power reactors (104).
    (3) The FY 2003 surcharge allocated to the spent fuel storage/
reactor decommissioning class of licenses is $1.8 million. The FY 2003 
spent fuel storage/reactor decommissioning surcharge to be assessed to 
each operating power reactor, each power reactor in decommissioning or 
possession only status that has spent fuel onsite, and to each 
independent spent fuel storage part 72 licensee who does not hold a 
part 50 license is approximately $14,900. 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 2003 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--$68,300
Test reactor--$68,300

    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

[[Page 16389]]

 
    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 
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 2003 annual fees are comprised of a base annual fee and 
an additional charge (surcharge). The activities comprising the FY 2003 
surcharge are shown for convenience in paragraph (e) of this section. 
The FY 2003 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]
------------------------------------------------------------------------
                                                            Annual fees
             Category of materials licenses                 \1\ \2\ \3\
------------------------------------------------------------------------
1. Special of nuclear material:
    A.(1) Licenses for possession and use of U-235 or
     plutonium for fuel fabrication activities.
        (a) Strategic Special Nuclear Material:
            BWX Technologies SNM-42.....................      $5,836,000
            Nuclear Fuel Services SNM-124...............       5,836,000
        (b) Low Enriched Uranium in Dispersible Form
         Used for Fabrication of Power Reactor Fuel:
            Global Nuclear Fuel SNM-1097................       1,957,000
            Framatome ANP Richland SNM-1227.............        1,957,00
            Westinghouse Electric Company SNM-1107......       1,957,000
    (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:
            Framatome ANP SNM-1168......................         769,000
        (b) All Others:
General Electric SNM-960................................         559,000
    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                  1,900
     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,                4,600
     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         3,634,000
     uranium enrichment facility
2. Source material:
    A.(1) Licenses for possession and use of source              839,000
     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\..........................          64,800
        Class II facilities \4\.........................          54,300
        Other facilities \4\............................         189,000
    (3) Licenses that authorize the receipt of byproduct          40,000
     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)..............................................

[[Page 16390]]

 
    (4) Licenses that authorize the receipt of byproduct           6,300
     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              730
     and/or installation of source material for
     shielding..........................................
    C. All other source material licenses...............          11,500
3. Byproduct material:
    A. Licenses of broad scope for possession and use of          22,000
     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                    6,600
     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 Sec.  Sec.   32.72, 32.73,           11,000
     and/or 32.74 of this chapter authorizing the
     processing or manufacturing and distribution or
     redistribution of radiopharmaceuticals, generators,
     reagent kits and/or sources and devices containing
     byproduct stmaterial. 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 Sec.  Sec.              4,800
     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 Sec.  Sec.   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)...................
    F. Licenses for possession and use of less than                6,700
     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           24,200
     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               6,100
     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               6,200
     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               2,200
     this chapter to distribute items containing
     byproduct material that require sealed source and/
     or device review to persons generally licensed
     under part 31 of this chapter, except specific
     licenses authorizing redistribution of items that
     have been authorized for distribution to persons
     generally licensed under part 31 of this chapter...
    K. Licenses issued under Subpart B of part 31 of               1,400
     this chapter to distribute items containing
     byproduct material or quantities of byproduct
     material that do not require sealed source and/or
     device review to persons generally licensed under
     part 31 of this chapter, except specific licenses
     authorizing redistribution of items that have been
     authorized for distribution to persons generally
     licensed under part 31 of this chapter.............
    L. Licenses of broad scope for possession and use of          11,900
     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                    5,600
     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                 6,200
         services are subject to the fees specified in
         fee Categories 4A, 4B, and 4C
    O. Licenses for possession and use of byproduct               12,300
     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,             2,500
     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           10,400
     waste byproduct material, source material, or
     special nuclear material from other persons for the
     purpose of packaging or repackaging the material.
     The licensee will dispose of the material by
     transfer to another person authorized to receive or
     dispose of the material............................

[[Page 16391]]

 
    C. Licenses specifically authorizing the receipt of            7,500
     prepackaged waste byproduct material, source
     material, or special nuclear material from other
     persons. The licensee will dispose of the material
     by transfer to another person authorized to receive
     or dispose of the material.........................
5. Well logging:
    A. Licenses for possession and use of byproduct                4,700
     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          23,300
     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          11,200
     this chapter for human use of byproduct material,
     source material, or special nuclear material in
     sealed sources contained in teletherapy devices.
     This category also includes the possession and use
     of source material for shielding when authorized on
     the same license...................................
    B. Licenses of broad scope issued to medical                  24,900
     institutions or two or more physicians under parts
     30, 33, 35, 40, and 70 of this chapter authorizing
     research and development, including human use of
     byproduct material except licenses for byproduct
     material, source material, or special nuclear
     material in sealed sources contained in teletherapy
     devices. This category also includes the possession
     and use of source material for shielding when
     authorized on the same license.\9\.................
    C. Other licenses issued under parts 30, 35, 40, and           4,600
     70 of this chapter for human use of byproduct
     material, source material, and/or special nuclear
     material except licenses for byproduct material,
     source material, or special nuclear material in
     sealed sources contained in teletherapy devices.
     This category also includes the possession and use
     of source material for shielding when authorized on
     the same license.\9\...............................
8. Civil defense:
    A. Licenses for possession and use of byproduct                1,400
     material, source material, or special nuclear
     material for civil defense activities..............
9. Device, product, or sealed source safety evaluation:
    A. Registrations issued for the safety evaluation of           7,000
     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           7,000
     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           2,200
     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             740
     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...........................          75,000
        Users...........................................           7,000
11. Standardized spent fuel facilities..................         \6\ N/A
12. Special Projects....................................         \6\ N/A
13. A. Spent fuel storage cask Certificate of Compliance         \6\ N/A
    B. General licenses for storage of spent fuel under         \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           230,000
 Government agencies....................................
18. Department of Energy:
    A. Certificates of Compliance.......................  \10\ 1,359,000
    B. Uranium Mill Tailing Radiation Control Act               960,000
     (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, 2002, and permanently ceased
  licensed activities entirely by September 30, 2002. 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.

[[Page 16392]]

 
\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 applicable to licenses in this
  category 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 Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq.)

    Dated at Rockville, Maryland, this 27th day of March, 2003.

    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 Proposed 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 were established on the basis of 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 proposed 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. The amount to be recovered for FY 2003 is 
approximately $526.3 million.
    OBRA-90 requires that the schedule of charges established by 
rule should fairly and equitably allocate the total amount to be 
recovered from 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 1999, 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 
1999. The NRC stated in the final FY 1999 rule that to stabilize 
fees it would continue to adjust the annual fees by the percent 
change method established in FY 1995, unless there is a substantial 
change in the total NRC budget or the magnitude of the budget 
allocated to a specific class of licenses, in which case the annual 
fee base would be reestablished.
    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 2003. 
Rebaselining fees would result in increased annual fees for a 
majority of the categories of licenses, decreased annual fees for 
other categories (including many materials licensees), and no change 
for one category.
    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 
2003 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 24 percent of these 
licensees (approximately 1,200 licensees for FY 2002) 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.

[[Page 16393]]

 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 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.
    The NRC examined the small entity fees again in FY 2001 (66 FR 
32452; June 14, 2001), and determined that a change was not 
warranted to the small entity fees established in FY 2000. The NRC 
stated in the Regulatory Flexibility Analysis for the FY 2001 final 
fee rule that it would 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.
    Accordingly, the NRC has re-examined the small entity fees for 
FY 2003, and does not believe that a change to the small entity fees 
is warranted this year. Unlike the annual fees assessed to other 
licensees, the small entity fees are not designed to recover the 
agency costs associated with particular licensees. Instead, the 
reduced fees for small entities are designed to provide some fee 
relief for qualifying small entity licensees while at the same time 
recovering from them some of the agency's costs for activities that 
benefit them. The costs not recovered from small entities for 
activities that benefit them must be recovered from other licensees. 
Given the reduction in annual fees and the relative low inflation 
rates, the NRC has determined that the current small entity fees of 
$500 and $2,300 continue to meet the objective of providing relief 
to many small entities while recovering from them some of the costs 
that benefit them.
    Therefore, the NRC is proposing to retain the $2,300 small 
entity annual fee and the $500 lower tier small entity annual fee 
for FY 2003. The NRC plans to re-examine the small entity fees again 
in FY 2005.

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 94 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

[[Page 16394]]

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 previously established remain valid for FY 2003.

Attachment 1 to Appendix A--U.S. Nuclear Regulatory Commission Small 
Entity Compliance Guide Fiscal Year 2003

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 2003 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 2003 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;
    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, 
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

[[Page 16395]]

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. 03-7814 Filed 4-2-03; 8:45 am]
BILLING CODE 7590-01-P