[Federal Register Volume 71, Number 28 (Friday, February 10, 2006)]
[Proposed Rules]
[Pages 7350-7380]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-1163]



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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 2006; Proposed Rule

  Federal Register / Vol. 71 , No. 28 / Friday, February 10, 2006 / 
Proposed Rules  

[[Page 7350]]


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NUCLEAR REGULATORY COMMISSION

10 CFR Parts 170 and 171

RIN 3150-AH83


Revision of Fee Schedules; Fee Recovery for FY 2006

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 90 percent of its budget 
authority in fiscal year (FY) 2006, less the amounts appropriated from 
the Nuclear Waste Fund (NWF) and for Waste Incidental to Reprocessing 
(WIR) activities. The required fee recovery amount for the FY 2006 
budget is approximately $624 million, which is increased by 
approximately $0.9 million to account for billing adjustments, 
resulting in a total of approximately $625 million that must be 
recovered through fees in FY 2006.

DATES: The comment period expires March 13, 2006. 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 2006 fees by September 30, 2006, requests for extensions of the 
comment period will not be granted.

ADDRESSES: You may submit comments by any one of the following methods. 
Please include number RIN 3150-AH83 in the subject line of your 
comments. Comments on rulemakings submitted in writing or in electronic 
form will be made available to the public in their entirety on the NRC 
rulemaking Web site. Personal information will not be removed from your 
comments.
    Mail comments to: Secretary, U.S. Nuclear Regulatory Commission, 
Washington, DC 20555-0001, ATTN: Rulemakings and Adjudications Staff.
    E-mail comments to: [email protected]. If you do not receive a reply e-
mail confirming that we have received your comments, contact us 
directly at (301) 415-1966. You may also submit comments via the NRC's 
rulemaking Web site at http://ruleforum.llnl.gov. Address questions 
about our Web site to Ms. Carol Gallagher, 301-415-5905; e-mail 
[email protected]. Comments can also be submitted via the Federal eRulemaking 
Portal at http://www.regulations.gov.
    Hand deliver comments to: 11555 Rockville Pike, Rockville, Maryland 
20852, between 7:30 a.m. and 4:15 p.m. Federal workdays. (Telephone 
301-415-1966).
    Fax comments to: Secretary, U.S. Nuclear Regulatory Commission at 
(301) 415-1101.
    Publicly available documents related to this rulemaking may be 
viewed electronically on the public computers located at the NRC's 
Public Document Room (PDR), Room O1 F21, One White Flint North, 11555 
Rockville Pike, Rockville, Maryland. The PDR reproduction contractor 
will copy documents for a fee. Selected documents, including comments, 
may be viewed and downloaded electronically via the NRC rulemaking Web 
site at http://ruleforum.llnl.gov. The Commission notes that it is 
providing improved summary documentation of the fee calculations used 
in this rulemaking as part of the publicly available documents, and 
believes that these new reports will enhance the transparency of the 
fee calculations and provide additional explanation of any changes in 
fees.
    Publicly available documents created or received at the NRC after 
November 1, 1999, are available electronically at the NRC's Electronic 
Reading Room 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. If you do not have access to ADAMS or 
if there are problems in accessing the documents located in ADAMS, 
contact the NRC PDR Reference staff at 1-800-397-4209; 301-415-4737 or 
by e-mail at [email protected].

FOR FURTHER INFORMATION CONTACT: Tammy Croote, telephone 301-415-6041; 
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 (Pub. L. 101-508), 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 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 (Pub. L. 
106-377) 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 
was 90 percent in FY 2005. The FY 2006 Energy and Water Development 
Appropriations Act (EWDAA) (Pub. L. 109-103), as amended by the 
Department of Defense, Emergency Supplemental Appropriations to Address 
Hurricanes in the Gulf of Mexico, and Pandemic Influenza Act, 2006 
(Pub. L. 109-148), extended this 90 percent fee recovery requirement 
through FY 2006. As a result, the NRC is required to recover 
approximately 90 percent of its FY 2006 budget authority, less the 
amounts appropriated from the NWF and for WIR activities, through fees. 
The required fee recovery amount for the FY 2006 budget is 
approximately $624 million, which is increased by approximately $0.9 
million to account for billing adjustments, resulting in a total of 
approximately $625 million that must be recovered through fees in FY 
2006.
    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.
    The amount of the NRC's required fee collections are set by law and 
are therefore outside the scope of this rulemaking. In FY 2006, the 
NRC's total

[[Page 7351]]

fee recoverable budget increased by $83.4 million from FY 2005 in 
response to increased workload. As such, most annual fees increased. 
The budget, including the increases, was allocated to the fee classes 
that the budgeted activities support. As discussed in more detail 
below, another factor affecting the amount of annual fees for each fee 
class is the estimated collection under part 170.
    Additional factors will affect the NRC's required fee recovery in 
future years. For example, the Energy Policy Act of 2005 (Pub. L. 109-
58) permanently extends the 90 percent fee recovery requirement 
beginning in FY 2007. The Energy Policy Act also permanently removes 
certain homeland security activities from the fee base beginning in FY 
2007. Section 637 states that the NRC will not recover in fees:

(iv) amounts appropriated to the Commission for homeland security 
activities of the Commission for the fiscal year, except for the 
costs of fingerprinting and background checks required by section 
149 of the Atomic Energy Act of 1954 (42 U.S.C. 2169) and the costs 
of conducting security inspections.

    Under this legislative requirement, the budgeted resources for all 
generic homeland security activities (those activities that support an 
entire license fee class or classes of licensees, such as rulemakings, 
guidance development, and vulnerability assessments) will be removed 
from the fee base beginning with the FY 2007 fee rulemaking. Pursuant 
to the NRC's authority under the IOAA, the NRC will continue to bill 
under part 170 for all licensee-specific homeland security-related 
services provided, including security inspections and security plan 
reviews. This legislative change will provide fee relief for NRC 
licensees. However, the net change in annual fees in FY 2007 will also 
depend on other factors, especially the amount of the NRC's FY 2007 
appropriated budget and the allocation of these resources to the 
license fee classes and surcharge categories (surcharge categories 
include the resources associated with activities for which the NRC does 
not charge fees, as described in more detail in Section II of this 
document), as well as any other policy decisions of the Commission.

II. Proposed Action

    The NRC is proposing to amend its licensing, inspection, and annual 
fees to recover approximately 90 percent of its FY 2006 budget 
authority less the appropriations received from the NWF and for WIR 
activities. The NRC's total budget authority for FY 2006 is $741.5 
million, of which approximately $45.7 million has been appropriated 
from the NWF, and $2.5 million for WIR activities. Based on the 90 
percent fee recovery requirement, the NRC must recover approximately 
$624 million in FY 2006 through part 170 licensing and inspection fees 
and part 171 annual fees. The amount required by law to be recovered 
through fees for FY 2006 is $83.4 million more than the amount 
estimated for recovery in FY 2005, an increase of over 15 percent.
    The FY 2006 fee recovery amount is increased by $0.9 million to 
account for billing adjustments (i.e., for FY 2006 invoices that the 
NRC estimates will not be paid during the fiscal year, less payments 
received in FY 2006 for FY 2005 invoices). There is no FY 2005 
carryover to apply to FY 2006 fee collections. This leaves 
approximately $625 million to be recovered in FY 2006 through part 170 
licensing and inspection fees and part 171 annual fees.
    The NRC estimates that approximately $188.7 million will be 
recovered in FY 2006 from part 170 fees. This represents an increase of 
over 22 percent as compared to the actual part 170 collections for FY 
2005 of $154.1 million. The NRC derived the FY 2006 estimate of part 
170 fee collections based on the previous four quarters of billing data 
for each license fee class, with adjustments to account for changes in 
the NRC's FY 2006 budget, as appropriate, and the increase in the 
hourly rates from FY 2005 to FY 2006. The remaining $436.2 million 
would be recovered through the part 171 annual fees in FY 2006, 
compared to $380.5 million for FY 2005, an increase of approximately 15 
percent.
    Table I summarizes the budget and fee recovery amounts for FY 2006 
(individual values may not sum to totals due to rounding).

          Table I.--Budget and Fee Recovery Amounts for FY 2006
                          [Dollars in millions]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Budget Authority.....................................       $741.5
    Less NWF and WIR.......................................        -48.1
                                                            ------------
        Balance............................................       $693.4
    Fee Recovery Rate for FY 2006..........................      x 90.0%
                                                            ------------
Total Amount to be Recovered For FY 2006...................       $624.0
    Less Carryover from FY 2005............................         -0.0
    Plus Part 171 Billing Adjustments:
        Unpaid FY 2006 Invoices (estimated)................          3.2
        Less Payments Received in FY 2006 for Prior Year            -2.3
         Invoices (estimated)..............................
                                                            ------------
        Subtotal...........................................          0.9
                                                            ============
Amount to be Recovered Through Parts 170 and 171 Fees......       $625.0
                                                            ============
    Less Estimated Part 170 Fees...........................       -188.7
                                                            ------------
Part 171 Fee Collections Required..........................       $436.2
------------------------------------------------------------------------

    The FY 2006 final fee rule will be a ``major rule'' as defined by 
the Congressional Review Act of 1996. Therefore, the NRC's fee 
schedules for FY 2006 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 2006 final rule. For these 
licensees, payment would be due on the effective date of the FY 2006 
rule. Those materials licensees whose license anniversary date during 
FY 2006 falls before the effective date of the final FY 2006 rule would 
be billed for the annual fee during the anniversary month of the

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license at the FY 2005 annual fee rate. Those materials licensees whose 
license anniversary date falls on or after the effective date of the 
final FY 2006 rule would be billed for the annual fee at the FY 2006 
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, as a cost saving measure, 
in accordance with its FY 1998 announcement, the NRC has discontinued 
mailing the final fee rule to all licensees. Accordingly, the NRC does 
not plan to routinely mail the FY 2006 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 Team, Division of Financial Management, Office of the Chief 
Financial Officer, at 301-415-7554, or e-mail [email protected]. The NRC 
plans to publish the final fee rule no later than June 2006. 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 of this document.

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 hourly rates to recover the full 
cost of activities under part 170, and to use these rates to calculate 
``flat'' application fees. Additionally, the NRC is proposing to charge 
Federal agencies part 170 fees (with the exception of certain 
Federally-owned test and research reactors); clarify that the tracking 
and monitoring of shipments necessary for certain licensing actions is 
subject to full cost fees under part 170; establish additional import/
export fee categories (subclasses); and make minor administrative 
changes for purposes of clarification, consistency, and to eliminate 
redundancy.
    The NRC is proposing the following changes:
1. Hourly Rates
    The NRC is proposing to establish in Sec.  170.20 two professional 
hourly rates for NRC staff time. These proposed rates would be based on 
the number of FY 2006 direct program full time equivalents (FTEs) and 
the NRC's FY 2006 fee recoverable budget, excluding direct program 
support costs. These rates are used in assessing full cost fees for 
specific services provided, as well as flat fees for certain 
application reviews. The proposed rate for the Nuclear Reactor Safety 
(Reactor) Program is $217 per hour. This rate would be applicable to 
all activities for which fees are assessed under Sec.  170.21 of the 
fee regulations (with the exception of reactor decommissioning and 
import/export licensing activities). The proposed rate for the Nuclear 
Materials and Waste Safety (Materials) Program is $215 per hour. This 
rate would be applicable to all activities for which fees are assessed 
under Sec.  170.31 of the fee regulations, as well as the reactor 
decommissioning and import/export activities under Sec.  170.21. In the 
FY 2005 final fee rule, the Reactor and Materials Program rates were 
$205 and $197, respectively. The increases to the Reactor and Materials 
Program rates are due to the recent Government-wide pay raise and to 
the more accurate allocation of agency overhead to these Programs and 
fee-exempt activities.
    The hourly rate is derived by dividing the sum of budgeted 
resources for (1) direct labor, (2) allocated program overhead, and (3) 
allocated agency overhead, by budgeted direct hours. This calculation 
is performed for both the Reactor and Materials Programs, and excludes 
the budgeted resources and associated overhead for fee exempt 
activities. The specific method used to determine the two professional 
hourly rates is as follows:
    a. Direct program budgeted FTE, as well as all associated program 
overhead (FTE and contracts), are allocated at the planned activity 
level to the fee classes and surcharge (i.e., fee exempt) categories 
based on who benefits from these activities. Direct contract support, 
which is the use of contract or other services in support of the line 
organization's mission-direct program, is excluded from the calculation 
of the hourly rates because the costs for direct contract support are 
recovered directly through either part 170 or 171 fees.
    b. All management and support budgeted resources (FTE and 
contracts), including resources associated with the Office of the 
Inspector General, are allocated to each fee class and surcharge 
category based on the percent of the total budgeted resources allocated 
to each fee class and surcharge category in step a.
    c. The hourly rate for the Reactor Program is calculated by 
dividing the total budgeted resources (calculated in steps a. and b.) 
allocated to the power reactor and test and research reactor fee 
classes by the direct hours allocated to those classes. Similarly, the 
hourly rate for the Materials Program is calculated by dividing the 
total budgeted resources allocated to the spent fuel/reactor 
decommissioning, fuel facility, transportation, materials users, 
uranium recovery, rare earth, and import/export fee classes by the 
direct hours allocated to those fee classes. An hourly rate for 
surcharge activities is not needed, however, the appropriate allocation 
of budgeted resources (including all associated overhead) and hours to 
the surcharge categories is calculated to ensure that these budgeted 
resources and hours are excluded from the Reactor and Materials Program 
hourly rates.
    The direct hours used in the denominator of this hourly rate 
calculation continue to be calculated based on an estimate of 1,446 
direct hours worked per direct FTE per year, as established in the FY 
2005 fee rule (70 FR 30526; May 26, 2005). As explained in the FY 2005 
fee rule, this estimate is based on data from the NRC's time and labor 
system. The NRC continues to believe this estimate appropriately 
reflects the direct time expended per direct FTE.
    Table II shows the results of this hourly rate calculation 
methodology. Due to rounding, adding the individual numbers in the 
table may result in a total that is slightly different than the one 
shown.

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   Table II.--FY 2006 Budget Authority to be Included in Hourly Rates
------------------------------------------------------------------------
                                                 Reactor      Materials
                                                 program       program
------------------------------------------------------------------------
Direct Program Salaries & Benefits..........      $182.4M        $41.4M
Program Overhead Salaries & Benefits, and           81.9M         18.0M
 Contract Support...........................
Allocated Agency Management and Support.....       151.5M         34.0M
                                             ---------------
    Subtotal................................       415.7M         93.4M
Less Offsetting Receipts....................        -0.1M         -0.0M
                                             ---------------
    Total Budget Included in Hourly Rate....      $415.6M        $93.4M
Program Direct FTEs.........................     1,322.8         300.6
Professional Hourly Rate (Total Budget            $217          $215
 Included in Hourly Rate divided by Program
 Direct FTE times 1,446 hours)..............
------------------------------------------------------------------------

    As shown in Table II, dividing the $415.6 million budgeted amount 
(rounded) included in the hourly rate for the Reactor Program by the 
Reactor Program direct hours (1,322.8 FTE times 1,446 hours) results in 
an hourly rate of $217 for the Reactor Program for FY 2006. Similarly, 
dividing the $93.4 million budgeted amount (rounded) included in the 
hourly rate for the Materials Program by the program direct hours 
(300.6 FTE times 1,446 hours) results in an hourly rate of $215 for the 
Materials Program in FY 2006. These hourly rates are rounded to the 
nearest whole dollar.
2. Fee Adjustments
    The NRC is proposing to adjust the current part 170 fees in 
Sec. Sec.  170.21 and 170.31 to reflect the changes in the revised 
hourly rates. The full cost fees assessed under Sec. Sec.  170.21 and 
170.31 would be based on the proposed professional hourly rates and any 
direct program support (contractual services) costs expended by the 
NRC. Any professional hours expended on or after the effective date of 
the final rule would be assessed at the FY 2006 hourly rates.
    The fees in Sec. Sec.  170.21 and 170.31 that are based on the 
average time to review an application (flat fees) would be adjusted to 
reflect the change in the Materials Program professional hourly rate 
from FY 2005. The proposed flat fees are calculated by multiplying the 
average professional staff hours needed to process the licensing 
actions by the proposed Materials Program professional hourly rate for 
FY 2006. The agency estimates the average professional staff hours 
needed to process licensing actions every other year as part of its 
biennial review of fees performed in compliance with the Chief 
Financial Officers Act of 1990 (Pub. L. 101-578). (This review was last 
performed as part of the FY 2005 fee rulemaking.) The amounts of the 
materials licensing flat fees are rounded so that the fees would be 
convenient to the user and the effects of rounding would be ``de 
minimis.'' Fees under $1,000 are rounded to the nearest $10, fees that 
are greater than $1,000 but less than $100,000 are rounded to the 
nearest $100, and fees that are greater than $100,000 are rounded to 
the nearest $1,000.
    The proposed licensing flat fees are applicable for fee categories 
K.1 through K.5 of Sec.  170.21, and fee categories 1.C, 1.D, 2.B, 2.C, 
3.A through 3.P, 4.B through 9.D, 10.B, 15.A through 15.R, 16, and 17 
of Sec.  170.31. The proposed higher hourly rate of $215 for the 
Materials Program is the reason for the increases in these proposed 
licensing fees. Applications filed on or after the effective date of 
the final rule would be subject to the revised fees in this proposed 
rule.
3. Charging Part 170 Fees to Federal Agencies/Fees for Research 
Reactors
    The NRC proposes to amend Sec. Sec.  170.11 and 170.31 to provide 
that part 170 fees will be assessed to Federal agencies where 
applicable. Under the Energy Policy Act of 2005 (Section 623), the NRC 
was granted authority to assess fees for specific services provided to 
any Federal government agency which applies to the NRC for, or is 
issued by the NRC, a license or certificate. The NRC currently recovers 
the costs of licensee-specific activities for non-Federal licensees, 
applicants, and certificate holders under part 170, but lacked the 
authority to assess these fees to Federal agencies (other than the 
Tennessee Valley Authority) until the effective date of the Energy 
Policy Act.
    Because activities such as processing license applications provide 
a specific benefit to the recipient, the Commission believes it is fair 
and appropriate to implement this new authority and thereby recover the 
costs of providing specific services to Federal agencies through part 
170 fees. The NRC has provided written notification to Federal 
agencies, that have an NRC license or certificate, that the NRC plans 
to implement this new authority in the FY 2006 final fee rule, so that 
they may include this cost in their budgets.
    The Commission notes that this provision of the Energy Policy Act 
of 2005 cannot legally be applied to services the NRC provides to 
Federal agencies that are not NRC licensees, certificate holders, or 
applicants. Therefore, the NRC is not proposing to charge part 170 fees 
to Federal agencies for activities that are not subject to NRC 
licensing. Examples of NRC activities not related to a license or 
certificate, and therefore not subject to part 170 fees under this 
proposed rulemaking, include those to support the DOE in its 
decommissioning of the West Valley site in New York, and technical 
assistance provided to the Department of Transportation for certain 
foreign approved transport package designs for import/export (for which 
NRC does not have regulatory authority).
    Under these proposed changes to part 170, Federal agency licensees, 
certificate holders, and applicants would be assessed fees in the same 
manner as are non-Federal agency licensees, certificate holders, and 
applicants. This means that Federal agencies would be required to pay 
part 170 fees for NRC services provided, including reviews of 
applications and other licensing actions, inspections, and 
decommissioning activities. This change does not require the 
calculation of any new fee amounts or establishment of new fee 
categories for Federal agencies. The only exception is that the NRC is 
proposing to establish a new flat application fee of $17,800 for fee 
category 17, ``Master materials licenses of broad scope issued to 
Government agencies,'' under Sec.  170.31. There is currently no 
application fee listed for this fee category because the only licensees 
in this fee category are for the Federal government. The proposed flat 
application fee was calculated in the same manner as other flat 
application fees; it equals the product of the average

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hours estimated to process these types of applications and the 
Materials Program hourly rate. Because of insufficient data on average 
processing times for these master materials licenses (because there are 
only three such NRC licensees), the NRC based its estimate of average 
processing time for master materials licensees on other license 
applications of similar complexity.
    Additionally, to implement this new authority, the NRC is proposing 
to change fee category 18.A under Sec.  170.31 to specify that full 
cost fees will be assessed for licensing and inspection activities 
associated with DOE's part 71 Certificates of Compliance.
    The NRC is proposing to exempt from part 170 fees Federally-owned 
test and research reactors that meet the fee exemption criteria set 
forth in Section 2903 of the Energy Policy Act of 1992 (Pub. L. 102-
486). [These criteria relate to factors such as thermal power level and 
whether the reactor contains a liquid fuel loading, and are listed 
under both Sec. Sec.  170.11(a)(9) and 171.11(a)(2). Three Federally-
owned research reactors currently meet this criteria (reactors at the 
Veteran's Administration Medical Center in Omaha, Nebraska, the U.S. 
Geological Survey in Denver, Colorado, and the Armed Forces 
Radiobiological Institute in Bethesda, Maryland)]. As implemented by 
Sec.  171.11(a)(2), Federally-owned test and research reactors that 
meet the statutory criteria are already exempt from paying annual fees. 
At the time Congress enacted this fee exemption, however, Federally-
owned reactors (other than the Tennessee Valley Authority) were not 
subject to part 170 fees. Therefore, the exemption criteria set forth 
in the Energy Policy Act of 1992 did not specifically address part 170 
fees. Now that NRC has the authority to charge part 170 fees to 
Federally-owned reactors, the NRC believes that it is appropriate as a 
matter of policy to apply the same criteria to Federally-owned test and 
research reactors, and exempt those meeting the criteria from part 170 
fees. State-owned reactors meeting this same criteria are currently 
exempt from part 170 fees under Sec.  170.11(a)(9). The Commission 
explained the rationale for this decision in the FY 1994 fee rule (59 
FR 36895; July 20, 1994) by stating that the NRC believed this was ``* 
* * consistent with the legislative intent of the Energy Policy Act of 
1992 that government-owned research reactors be exempt from fees if 
they meet the technical design criteria of the exemption and are used 
primarily for educational training and academic research purposes.'' 
The Commission continues to believe this is consistent with the intent 
of the Energy Policy Act of 1992, and therefore is proposing to exempt 
these Federally-owned reactors from part 170 fees. However, the NRC 
will re-evaluate this proposal in formulating its final rule after 
reviewing any public comments.
    Note, as part of the proposed revisions to Sec.  170.11(a)(9), the 
NRC is clarifying that the fee exemption therein remains in effect even 
after the reactors meeting this criteria are no longer authorized to 
operate.
4. Charging Part 170 Fees for Tracking and Monitoring Shipments of 
Classified Matter
    The NRC is proposing to clarify that full cost part 170 fees will 
be assessed to track and monitor shipments of classified materials 
(e.g., components of gas centrifuge uranium enrichment facilities). The 
NRC currently has under review applications to build and operate gas 
centrifuge uranium enrichment facilities. Because of the sensitive 
technology, many of the components associated with these facilities are 
classified as Restricted Data under the Atomic Energy Act of 1954 (Pub. 
L. 83-703), as amended. Furthermore, some of these components are 
voluminous and cannot be transported under the standard classified 
matter transportation requirements of Sec.  95.39(b) and (c) (e.g., 
double wrapping, marking, and tracking). In these cases, the NRC 
requires the licensee or applicant to submit a security plan under 
Sec.  95.39(e) for transporting this non-standard classified matter. 
One aspect of classified matter transportation security plans is 
continuous telemetric position monitoring and tracking of shipments of 
classified matter, including a capability for notification of local law 
enforcement officials and the NRC in the case of an emergency.
    Because of the inherent national security concerns associated with 
the transportation of Restricted Data components and the current threat 
environment, the NRC has not considered permitting licensees to 
establish their own telemetric position monitoring and tracking 
capability for shipments of classified matter, nor to contract with a 
commercial service to meet this requirement. Instead, the NRC intends 
to require that these shipments be tracked and monitored by a U.S. 
government owned or operated system (e.g., systems operated by the U.S. 
Departments of Defense or Energy). As such, the NRC is establishing an 
interagency agreement and memorandum of understanding and reimbursable 
agreement with another government agency to provide the necessary 
tracking, monitoring, and communications center capabilities. 
Accordingly, the costs incurred by the NRC from this other government 
agency in monitoring these shipments will be passed on to the 
applicable licensee in full. While this is a new activity, the recovery 
of these costs through part 170 fees is consistent with the NRC's 
existing full cost recovery policy for licensing activities.
    The NRC is proposing to make this clarification by modifying the 
definition of ``special projects'' in Sec.  170.3 to include this type 
of activity. This definition currently includes examples of special 
projects; including this activity as an example would ensure that 
licensees are informed that these activities are subject to part 170 
fees.
5. Revisions to Import/Export Fee Categories
    The NRC is proposing to modify the import and export fee categories 
at Sec.  170.31 to reflect revisions to 10 CFR part 110 that were 
published on July 1, 2005 (70 FR 37985), effective December 28, 2005. 
These part 110 revisions take into account provisions in the 
International Atomic Energy Agency (IAEA) Code of Conduct on the Safety 
and Security of Radioactive Sources concerning the import and export of 
radioactive sources, and the supplemental IAEA guidance on the Import 
and Export of Radioactive Sources.
    The specific radioactive material and quantities newly covered by 
NRC regulations, per the July 1, 2005 revisions, are listed in Table 1 
of Appendix P to part 110, and are essentially identical to the list of 
radioactive materials in Category 1 and Category 2 of the Code of 
Conduct. The amendments to part 110 require NRC authorization of 
certain exports and imports by specific license. As a result of these 
changes, it is necessary to add additional import/export fee categories 
under Sec.  170.31 to accommodate these new types of licensees.
    Therefore, the NRC is proposing to modify fee category 15 at Sec.  
170.31 to include separate fee categories for Category 1 Exports (fee 
categories 15.F through 15.I), Category 2 Exports (fee categories 15.J 
through 15.L), Category 1 Imports (fee categories 15.M and 15.N), 
Category 2 Imports (fee category O), Category 1 Imports with Agent and 
Multiple Licensees (fee categories 15.P and 15.Q), and minor amendments 
to Category 1 and 2 Exports and Imports (fee category 15.R). As with 
other flat fees established under Sec.  170.31, the proposed fees 
associated with each fee category reflect the NRC's estimate of

[[Page 7355]]

average hours required to process the license application, multiplied 
by the hourly rate. These proposed changes also establish that for a 
combined import and export license application for material listed in 
Appendix P to part 110, only the higher of the two applicable fee 
amounts must be paid. This is because the difference in level of effort 
associated with processing a combined import and export license versus 
processing just the export license (for the material listed in Appendix 
P to part 110, only) is negligible.
6. Administrative Amendments
    The NRC is proposing to eliminate the reference to ``route 
approvals for shipment of radioactive materials'' in the definition of 
``special projects'' under Sec.  170.3. This activity is currently 
covered under Sec.  170.31, fee category 10 C., which establishes full 
cost recovery for this and other related activities; therefore, the 
additional reference to this activity as a special project (for which 
the NRC assesses full cost fees) is redundant.
    The NRC is also proposing to modify Sec.  170.11(a)(4) to clarify 
that the fee exemption does not apply if an institution meets at least 
one of the criteria listed in Sec.  170.11(a)(4)(I)--(iv). Currently, 
these criteria are connected with an ``and,'' rather than an ``or,'' 
making it unclear whether the fee exemption in Sec.  170.11(a)(4) 
applies to an institution that meets one of the criteria. This revised 
language would be consistent with the language used for this same 
exemption as applied to part 171 fees under Sec.  171.11(a)(1) and 
would enhance the clarity of this provision.
    Additionally, the NRC is proposing to clarify which hourly rate is 
applicable to which activities. Currently, Sec.  170.20 states that the 
Reactor Program rate is applicable to Sec.  170.21 activities, and the 
Materials Program rate is applicable to Sec.  170.31 activities. The 
NRC is proposing to amend Sec.  170.20 to clarify that (1) the Reactor 
Program hourly rate would be applicable to all activities for which 
fees are assessed under Sec.  170.21 of the fee regulations, with the 
exception of reactor decommissioning and import/export licensing 
activities, and (2) the Materials Program rate is applicable to all 
activities for which fees are assessed under Sec.  170.31 of the fee 
regulations, as well as the reactor decommissioning and import/export 
activities under Sec.  170.21. This change would better align the 
applicable hourly rate with the data used to calculate that rate (i.e., 
reactor decommissioning resources are included in the Materials Program 
hourly rate).
    Finally, the NRC is proposing to create a new fee category under 
Sec.  170.31, which would effectively split the current fee category 
1.A.2.b (``other'' fuel facilities) into two categories, one for gas 
centrifuge enrichment demonstration facilities and one for hot cell 
facilities. This change would keep the fee categories under parts 170 
and 171 consistent, in light of the same change the NRC is proposing to 
make to Sec.  171.16. This change would not affect part 170 fee 
recovery requirements, as each category would be subject to full cost 
part 170 fees where applicable. This change would result in different 
annual fees for the existing fee category 1.A.2.b and the new fee 
category 1.A.2.c, as explained in more detail under Section B.5 of this 
document.
    In summary, the NRC is proposing the following changes to 10 CFR 
part 170--
    1. Establish revised Reactor and Materials Program hourly rates;
    2. Revise the licensing fees to be assessed to reflect the Reactor 
and Materials Program hourly rates;
    3. Amend Sec. Sec.  170.11 and 170.31 to provide that part 170 fees 
will be assessed to Federal agencies where applicable (except for 
certain Federally-owned research reactors);
    4. Revise Sec.  170.3 to clarify that full cost part 170 fees will 
be assessed to track and monitor shipments of classified matter;
    5. Modify the import and export fee categories under Sec.  170.31; 
and
    6. Make minor administrative changes for purposes of clarification, 
consistency, and to eliminate redundancy.

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 proceed with a presumption in favor of 
rebaselining annual fees beginning with the final FY 2006 rule; recover 
generic transportation costs as part of other existing annual fees; 
revise the annual fees for FY 2006 to reflect the FY 2006 budget, 
changes in the number of NRC licensees, and the division of an existing 
fuel facilities fee category into two categories; eliminate the 
existing fee payment method exception for Class I and Class II uranium 
recovery licensees; and make an administrative change to clarify the 
definition of ``overhead and general and administrative costs.'' The 
proposed amendments are described below.
1. Rebaselining Annual Fees
    The NRC uses one of two methods to determine the amounts of the 
annual fees established in its fee rule each year. One method is 
``rebaselining,'' for which the NRC's budget is analyzed in detail and 
budgeted resources are allocated to fee classes and categories of 
licensees. The second method is the ``percent change'' method, for 
which fees are revised based on the percent change in the total budget, 
taking into account other adjustments, such as the number of licensees 
and the projected revenue to be received from part 170 fees.
    The NRC is proposing to establish rebaselined annual fees for FY 
2006, and to proceed with a presumption in favor of rebaselining when 
determining annual fees for FY 2007 and beyond. The Commission's 
previous policy regarding the method of calculating annual fees, made 
in the statement of consideration of the FY 1995 fee rule (60 FR 32218; 
June 20, 1995), and further explained in the statement of consideration 
of the FY 1999 fee rule (64 FR 31448; June 10, 1999), was that annual 
fees would be rebaselined at least every third year, and more 
frequently if there was a substantial change in the total NRC budget or 
in the magnitude of the budget allocated to a specific class of 
licensees. The NRC is proposing to establish a presumption in favor of 
rebaselining beginning with the FY 2006 rulemaking because (1) 
rebaselining is usually appropriate because there is often a 
substantial change in the total NRC budget or in the magnitude of the 
budget allocated to a specific class of licensees, and (2) delaying 
rebaselining can result in larger fee changes in the years when fees 
are rebaselined. The use of the percent change method would remain an 
option should there be a year in which there are no significant changes 
to the total budget or individual programs for fee classes. The NRC 
expects that in most years, annual fees would be rebaselined.
    Until FY 1996, annual fees were determined using the rebaselining 
method. In an effort to stabilize fees, the NRC decided to adjust 
annual fees using the percent change method beginning in FY 1996, 
unless there was a substantial change in the NRC budget or in the 
magnitude of a specific budget allocation to a class of licensees. Fees 
were determined using the percent change method in the FYs 1996-1998 
fee rules.
    The NRC rebaselined fees in the FY 1999 fee rule, and solicited 
comment on the use and frequency of the percent change method. Some 
commenters,

[[Page 7356]]

such as the Nuclear Energy Institute, supported rebaselining every 
year, believing that this method best supports the accurate alignment 
of costs to fee classes and the in-depth review needed to maximize 
agency efficiency. Other commenters appreciated the fee stability 
provided by the percent change method. In response to these comments, 
the Commission determined that annual fees should be rebaselined every 
three years, or more frequently if there is a substantial change in the 
total NRC budget or in the magnitude of the budget allocated to a 
specific class of licensees. Fees were calculated using the percent 
change method in FY 2000, and were rebaselined in FYs 2001-2005.
    As mentioned previously, the NRC believes that it should proceed, 
in future rulemakings, with a presumption in favor of rebaselining 
because there is often a substantial change in the total NRC budget or 
in the magnitude of the budget allocated to a specific class of 
licensees. Changes occurring in FY 2006 and beyond that warrant a 
rebaselining of fees include those in the areas of new reactor 
licensing, homeland security (including the removal of certain homeland 
security costs from the fee base beginning in FY 2007, per the Energy 
Policy Act of 2005), and new regulatory authority for naturally 
occurring and accelerator produced radioactive material. Accordingly, 
the Commission has concluded that the percent change method should be 
used infrequently, and therefore, is proposing to proceed with a 
presumption in favor of rebaselining each year beginning with this fee 
rule.
2. Recovering Generic Transportation Costs as Part of Other Existing 
Annual Fees
    The NRC is proposing that generic transportation costs unrelated to 
DOE be recovered as part of existing annual fees for license fee 
classes, rather than through a separate annual fee for part 71 Quality 
Assurance (QA) program approval holders (as is the current practice). 
Under this change, the annual fee for fee categories 10.B.1 and 10.B.2 
under Sec.  171.16 would be eliminated; however, the NRC is not 
proposing to change or eliminate the annual fee under Sec.  171.16, fee 
category 18.A, for DOE transportation activities, which would continue 
to be calculated using the current methodology (described further under 
Section 3.h of this document). This change would enhance the equity of 
NRC's fees, increase the consistency of 10 CFR parts 71 and 72 fee 
recovery, and decrease the administrative burden associated with a 
separate transportation annual fee.
    All NRC licensees must perform some activities related to the 
transportation of radioactive material as a necessary part of their 
licensed activities. This transportation is authorized by their NRC 
license (under 10 CFR parts 30, 40, 50, 70, etc.). [10 CFR 71.17 
establishes a general license that authorizes NRC licensees to make 
shipments using packages with an approved Certificate of Compliance 
(CoC), without further approval.] For example, all licensees receive 
licensed material at their site, and ship products and waste materials. 
Because the NRC does not issue separate licenses under part 71 for 
transportation activities, the NRC currently recovers the cost of all 
``generic'' transportation activities (i.e., those activities that are 
not licensee-specific, and therefore not recovered through part 170 
fees) through annual fees for QA program approvals. QA program 
approvals are required for entities holding NRC approved CoCs for 
transportation packages and for licensees that ship large (Type B) 
quantities of radioactive material or fissile material. NRC licensees 
must also use an approved CoC to transport radioactive material.
    The NRC currently charges annual fees for the two types of QA 
program approvals it issues: (1) Use (approximately 80 programs), and 
(2) use and fabrication (approximately 40 programs). However, the 
resources for generic transportation activities--which are recovered 
through these two annual fees--support many other transportation-
related NRC approvals and services, including the issuance of CoCs, 
route approvals, and evaluations of transportation devices and security 
plans. (The NRC charges part 170 fees for these specific services, not 
annual fees for various reasons.)
    One reason this approach raises fairness concerns is that a company 
is required to have only one QA program approval regardless of the 
number of CoCs it holds. This means companies pay the same annual fee 
regardless of whether they own one or many CoCs. As industry 
consolidation has increased over the past decade and the NRC has issued 
fewer QA program approvals, this equity concern has increased.
    The NRC believes generic transportation resources would be 
recovered more equitably if these costs were included in the existing 
annual fees for NRC licenses for 10 CFR parts 30, 40, 50, 70, etc. The 
resources associated with generic transportation activities would be 
distributed to the license fee classes based on the number of CoCs 
benefitting (used by) that fee class, as a proxy for the generic 
transportation resources expended for each fee class. (This is a method 
similar to that used to calculate DOE's annual fee for transportation 
activities under Sec.  171.16 fee category 18.A.) In this way, the 
annual fee for a license would include the estimated share of 
transportation resources needed to support that license, similar to the 
recovery of other types of generic resources such as rulemakings and 
risk assessments. Note the amount of generic transportation resources 
distributed to the fee classes does not include the cost of activities 
associated with fee-exempt entities (e.g., nonprofit educational 
institutions). Additionally, the distribution of these resources to the 
fee classes is adjusted to account for the licensees in each fee class 
that are fee exempt. [For example, if two CoCs benefit the entire test 
and research reactor class, but only four of 31 test and research 
reactors are subject to annual fees, the number of CoCs used to 
determine the proportion of generic transportation resources allocated 
to test and research reactor annual fees equals ((4/31)*2), or 0.26 
CoCs.]
    Under this new approach, reactors would pay approximately 38 
percent of these costs in FY 2006, materials users approximately 32 
percent, fuel facilities approximately 21 percent, spent fuel/reactor 
decommissioning licensees approximately nine percent, and test and 
research reactors approximately 0.3 percent.
    This new approach would also increase the consistency of parts 71 
and 72 fee recovery. Part 72 QA programs are approved as part of the 
CoC approval process, and an annual fee is not assessed for either this 
QA approval or the CoC. The generic costs associated with spent fuel 
storage are recovered as part of the annual fee assessed to operating 
power reactors, decommissioning power reactors, and independent spent 
fuel storage installation licensees who do not hold a part 50 license.
    Finally, an additional benefit of this approach is that it would 
decrease administrative burden and costs for both NRC and licensees by 
eliminating a required systems interface for NRC fee billing purposes, 
as well as reduce the number of NRC bills and accounts receivable 
transactions.
3. Revised Annual Fees
    The annual fees in Sec. Sec.  171.15 and 171.16 would be revised 
for FY 2006 to recover approximately 90 percent of the NRC's FY 2006 
budget authority, less the estimated amount to be recovered through 
part 170 fees and the amounts appropriated from the NWF and for WIR 
activities. The total amount to be

[[Page 7357]]

recovered through annual fees for FY 2006 is $436.2 million, compared 
to $380.5 million for FY 2005.
    Rebaselining fees in FY 2006 would result in increased annual fees 
compared to FY 2005 for all licensees, with the exception of certain 
fuel facilities. The proposed increases in annual fees range from less 
than one percent for certain fuel facilities to approximately 120 
percent for uranium recovery facilities. However, most of the annual 
fee increases are of similar magnitude to the percentage increase in 
total required fee recovery of approximately 15 percent. The annual fee 
for certain medical licensees (fee category 7C) and industrial users of 
nuclear material (fee category 3P), which are the two fee categories 
with the largest number of licensees (with a combined total of over 
3,300 of the NRC's approximately 4,500 materials users licensees), 
would increase by approximately 18 percent and 16 percent, 
respectively.
    As mentioned previously, the most significant factor affecting the 
changes to the annual fee amounts is the increase in the NRC's fee 
recoverable budget in FY 2006. The NRC's fee recoverable budget, as 
mandated by law, is $83.4 million larger in FY 2006 as compared to FY 
2005, an increase of over 15 percent. Much of this increase is for the 
additional workload demand in areas such as new plant licensing and 
security. Other factors include adjustments in the distribution of 
budgeted costs to the different classes of licenses (based on the 
specific activities NRC will perform in FY 2006) and the estimated part 
170 collections for the various classes of licenses. The percentage of 
the NRC's budget not subject to fee recovery remained unchanged at ten 
percent from FY 2005 to FY 2006.
    Note that the NRC's total estimated part 170 fee collections 
increased by over 22 percent in FY 2006 (compared to FY 2005 actual 
part 170 collections), so that the percent of total fees collected 
under part 170 is estimated to be 30.2 percent in FY 2006, versus 29 
percent for FY 2005. This increase is mainly due to the increase in the 
FY 2005 hourly rates as compared to the FY 2004 hourly rates. As 
discussed in the FY 2005 rulemaking, the higher hourly rates 
established in FY 2005 would increase part 170 fee collections 
beginning in FY 2006. (These rates took effect near the end of FY 2005, 
and the NRC began collecting receipts from these higher rates as of the 
beginning of FY 2006.) Because costs not recovered under part 170 are 
recovered through part 171 annual fees, an increase in total part 170 
fee collections results in a reduction in total annual fees by the same 
amount. Because of the higher hourly rates and resulting higher part 
170 fee collections in FY 2006, the FY 2006 annual fees are lower than 
they would have been had NRC not established higher hourly rates in FY 
2005.
    Note the annual fees shown in this section are proposed annual fees 
based on the latest information available during the development of 
this proposed rule. Annual fees may change between the FY 2006 proposed 
and final fee rules in light of revised projections of part 170 fee 
collections for each fee class, which are based on the latest available 
data on part 170 activities. Annual fees may also change if there are 
significant changes in the allocation of the budget to planned 
activities.
    Table III shows the proposed rebaselined annual fees for FY 2006 
for a representative list of categories of licenses. The FY 2005 fee is 
also shown for comparative purposes.

             Table III.--Rebaselined Annual Fees for FY 2006
------------------------------------------------------------------------
                                              FY 2005         FY 2006
       Class/category of licenses           annual fee      annual fee
------------------------------------------------------------------------
Operating Power Reactors (including           $3,155,000      $3,655,000
 Spent Fuel Storage/Reactor
 Decommissioning annual fee)............
Spent Fuel Storage/Reactor                       159,000         168,000
 Decommissioning........................
Test and Research Reactors (Nonpower              59,500          76,300
 Reactors)..............................
High Enriched Uranium Fuel Facility.....       5,449,000       5,579,000
Low Enriched Uranium Fuel Facility......       1,632,000       1,643,000
UF6 Conversion Facility.................         699,000       1,076,000
Conventional Mills......................          30,200          66,400
Typical Materials Users:
    Radiographers.......................          12,800          15,300
    Well Loggers........................           4,100           4,700
    Gauge Users (Category 3P)...........           2,500           2,900
    Broad Scope Medical.................          27,300          32,600
------------------------------------------------------------------------

    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 2006 EWDAA, which amended OBRA-90 to require that the 
NRC recover 90 percent of its budget in FY 2006, the total surcharge 
costs for FY 2006 will be reduced by approximately $69.3 million. The 
total FY 2006 budgeted costs for these activities and the reduction in 
the total surcharge amount for fee recovery purposes are shown in Table 
IV (individual values may not sum to totals due to rounding).

                       Table IV.--Surcharge Costs
                          [Dollars in millions]
------------------------------------------------------------------------
                                                               FY 2006
                     Category of costs                         budgeted
                                                                costs
------------------------------------------------------------------------
1. Activities not attributable to an existing NRC licensee
 or class of licensee:
    a. International activities............................        $14.1
    b. Agreement State oversight...........................          8.0

[[Page 7358]]

 
    c. Activities for unlicensed sites (includes                     5.4
     decommissioning costs associated with unlicensed
     sites, formerly referred to as site decommissioning
     management plan activities not recovered under part
     170; also includes activities associated with
     unregistered general licensees).......................
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         11.9
    b. Licensing and inspection activities associated with           1.4
     other Federal agencies................................
    c. Costs not recovered from small entities under 10 CFR          5.7
     171.16(c).............................................
3. Activities supporting NRC operating licensees and
 others:
    a. Regulatory support to Agreement States \1\..........         20.2
    b. Generic decommissioning/reclamation (except those             6.5
     related to power reactors)............................
                                                            ============
        Total surcharge costs..............................         73.1
Less 10 percent of NRC's FY 2006 total budget (less NWF)...        -69.3
                                                            ------------
        Total Net Surcharge Costs to be Recovered..........         3.7
------------------------------------------------------------------------
\1\ This estimate includes the costs of homeland security activities
  associated with sources in Agreement States, even though regulatory
  authority remains with the NRC for these activities. However, fees are
  not assessed to sources in Agreement States for these activities,
  therefore these costs are included in this surcharge category.
  Additionally, this estimate includes some costs associated with
  establishing a regulatory infrastructure for naturally occurring and
  accelerator produced radioactive material because this infrastructure
  will further the future regulation of these sources by both NRC and
  Agreement States.

    As shown in Table IV, $3.7 million would be the total net surcharge 
cost allocated to the various classes of licenses for FY 2006 (i.e., 
that portion of the total surcharge not covered by the NRC's 10 percent 
fee relief). The NRC would continue to allocate these surcharge costs 
to each class of licenses based on the percent of the budget for that 
fee class compared to the NRC's total budget. The proposed surcharge 
costs allocated to each class would be included in the annual fee 
assessed to each licensee. The proposed FY 2006 surcharge costs (and 
the percent of total surcharge costs) allocated to each class of 
licenses, are shown in Table V (individual amounts may not sum to 
totals due to rounding). Separately, the NRC would continue to allocate 
the low-level waste (LLW) surcharge costs based on the volume of LLW 
disposal of certain classes of licenses. For FY 2006, the LLW surcharge 
costs are $3.5 million.

                                        Table V.--Allocation of Surcharge
----------------------------------------------------------------------------------------------------------------
                                                     LLW surcharge           Non-LLW surcharge          Total
                                              -----------------------------------------------------   surcharge
                                                                                                   -------------
                                                 Percent         $M        Percent         $M            $M
----------------------------------------------------------------------------------------------------------------
Operating Power Reactors.....................           74          2.6         83.5           3.1           5.7
Spent Fuel Storage/Reactor Decomm............  ...........  ...........          4.4           0.2           0.2
Test and Research Reactors...................  ...........  ...........          0.1           0             0
Fuel Facilities..............................            8          0.3          6.8           0.3           0.5
Materials Users..............................           18          0.6          4.2           0.2           0.8
Transportation...............................  ...........  ...........          0.4           0             0
Rare Earth Facilities........................  ...........  ...........          0.1           0             0
Uranium Recovery.............................  ...........  ...........          0.4           0             0
                                              --------------
    Total Surcharge..........................          100          3.5        100.0           3.7           7.2
----------------------------------------------------------------------------------------------------------------

    The budgeted costs allocated to each class of licenses and the 
calculations of the rebaselined fees are described in paragraphs 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 Commission notes that it 
is providing improved summary documentation of the fee calculations 
used in this rulemaking as part of the publicly available documents, 
and believes that these new reports will enhance the transparency of 
the fee calculations and provide additional explanation of any changes 
in fees. These reports summarize the FY 2006 budgeted FTE and contract 
dollars, at the planned activity and program level, allocated to each 
fee class and surcharge category, and compares these allocations to 
those used to develop final FY 2005 fees. The workpapers are available 
electronically at the NRC's Electronic Reading Room on the Internet at 
Web site address http://www.nrc.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.
    Note all budgeted resources and annual fee amounts presented in 
this document reflect an increase in the full cost of an FTE. This 
increase occurred due to the Government-wide pay raise

[[Page 7359]]

and the more accurate allocation of overhead to the FTEs supporting fee 
classes versus surcharge categories, which increased the full cost of 
FTEs supporting fee classes. (As a percent of total fee-based budgeted 
resources, the resources associated with NRC's overhead actually 
declined from FY 2005 to FY 2006). As such, some fee classes reflect a 
small increase in the dollar value of allocated budgeted resources, 
even while the number of FTE and value of contract dollars allocated to 
that fee class declined slightly.
    a. Fuel Facilities. The FY 2006 budgeted cost to be recovered in 
the annual fees assessment to the fuel facility class of licenses is 
approximately $25.5 million. This value is derived based on the full 
cost of budgeted resources associated with all activities that support 
this fee class, which is reduced by estimated part 170 collections and 
adjusted to reflect the net allocated surcharge, any allocated generic 
transportation resources, and billing adjustments. The summary 
calculations used to derive this value are presented in Table VI for FY 
2006, with FY 2005 values shown for comparison purposes (individual 
values may not sum to totals due to rounding):

     Table VI.--Annual Fee Summary Calculations for Fuel Facilities
                          [Dollars in millions]
------------------------------------------------------------------------
  Summary fee calculations fuel facility fee      FY 2005      FY 2006
                     class                         final       proposed
------------------------------------------------------------------------
Total budgeted resources......................        $38.2        $41.0
Less estimated part 170 receipts..............        -14.3        -16.9
                                               ==============
    Net part 171 resources....................         24.0         24.1
Plus allocated generic transportation.........        + N/A         +0.8
Plus allocated surcharge......................        + 0.4         +0.5
Billing adjustments (including carryover and           -0.2         +0.0
 budget rescission)...........................
                                               --------------
    Total required annual fee recovery........         24.1         25.5
------------------------------------------------------------------------

    The increase in total fuel facilities annual fees is partly 
attributable to a small increase in the value of total budgeted 
resources supporting this fee class, which is due mostly to an increase 
in the full cost of an FTE (as explained previously), along with the 
addition of allocated transportation resources.
    The total required annual fee recovery amount 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 
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.
    This methodology is adaptable to changes in the number of licensees 
or certificate holders, licensed or certified material and/or 
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 it 
not being subject to part 171 costs applicable to the fee class, then 
the budgeted costs for the safety and/or safeguards components will be 
spread among the remaining fuel facility licensees/certificate holders.
    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 use 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.
    Once the structure of the matrix is established, the NRC's fuel 
facility project managers and regulatory analysts determine the level 
of effort associated with regulating each of these facilities. This is 
done by assigning, for each fuel facility, separate effort factors for 
the safety and safeguards activities associated with each type of 
regulatory activity. The matrix includes ten types of regulatory 
activities, including enrichment and scrap/waste related activities 
(see the workpapers for the complete list). Effort factors are assigned 
as follows: zero (no regulatory effort), one (low regulatory effort), 
five (moderate regulatory effort), and ten (high regulatory effort). 
These effort factors are then totaled for each fee category, such that 
each fee category has a total effort factor for safety activities and a 
total effort factor for safeguards activities.
    The budgeted resources for safety activities are then allocated to 
each fee category based on its percent of the total regulatory effort 
for safety activities. For example, if the total effort factor for 
safety activities for all fuel facilities is 100, and the total effort 
factor for safety activities for a given fee category is ten, that fee 
category will be allocated ten percent of the total budgeted resources 
for safety activities. Similarly, the budgeted resources for safeguards 
activities are allocated to each fee category based on its percent of 
the total regulatory effort for safeguards activities.
    The proposed effort factors for the various fuel facility fee 
categories are summarized in Table VII. The value of the effort factors 
shown, as well as the percent of the total effort factor for all fuel 
facilities, reflects the total for each fee category (not per 
facility). Note this table includes the addition of a new fee

[[Page 7360]]

category, as discussed immediately following the table.

                                 Table VII.--Effort Factors for Fuel Facilities
----------------------------------------------------------------------------------------------------------------
                                                                                    Effort factors  (percent of
                                                                     Number of                total)
                  Facility type (fee category)                      facilities   -------------------------------
                                                                                      Safety        Safeguards
----------------------------------------------------------------------------------------------------------------
High Enriched Uranium Fuel......................................               2      101 (38.0)       96 (52.2)
Enrichment......................................................               2       70 (26.3)       40 (21.7)
Low Enriched Uranium Fuel.......................................               3       66 (24.8)       21 (11.4)
UF6 Conversion..................................................               1        12 (4.5)        70 (3.8)
Limited Operations..............................................               1         8 (3.0)         3 (1.6)
Gas Centrifuge Enrichment Demonstration.........................               1         3 (1.1)        15 (8.2)
Hot Cell........................................................               1         6 (2.3)         2 (1.1)
----------------------------------------------------------------------------------------------------------------

    The NRC is proposing to divide fee category 1.A.2.b under Sec.  
170.31 into two categories, and use the existing fee methodology to 
establish separate annual fees for these two categories. Currently, fee 
category 1.A.2.b captures all fuel facility licensees that do not fall 
into other fee categories. There are currently two licensees in this 
fee category; one is a gas centrifuge enrichment demonstration 
facility, and one is a hot cell facility. The NRC provides 
significantly different levels of regulatory support for these 
facilities; for example, the gas centrifuge enrichment demonstration 
facility generates and requires the safe management of significantly 
greater amounts of sensitive information. For this reason, the NRC 
proposes to divide this fee category into two categories to separately 
establish annual fees for these two types of facilities based on the 
NRC's resources (i.e., level of effort) specifically associated with 
regulating each type of facility. This would better align the NRC's 
budgeted resources with the fees assessed to these two facilities.
    Applying the FY 2006 proposed effort factors (as summarized in 
Table VII) to the safety, safeguards, and surcharge components of the 
$25.5 million total annual fee amount for the fuel facility class 
results in annual fees for each licensee within the categories of this 
class summarized in Table VIII. Note that the proposed annual fees for 
the gas centrifuge enrichment demonstration and UF6 
conversion facilities are higher than the FY 2005 annual fees because 
the safeguards effort factors for these facilities have been raised. 
These revised factors better reflect the effort levels associated with 
safeguards activities for these facilities, including those associated 
with interim compensatory measures and the handling of sensitive 
information.

              Table VIII.--Annual Fees for Fuel Facilities
------------------------------------------------------------------------
                                                              FY 2006
              Facility type (fee category)                  annual fee
------------------------------------------------------------------------
High Enriched Uranium Fuel..............................      $5,579,000
Uranium Enrichment......................................       3,115,000
Low Enriched Uranium....................................       1,643,000
UF6 Conversion..........................................       1,076,000
Gas Centrifuge Enrichment Demonstration.................       1,019,000
Limited Operations Facility.............................         623,000
Hot Cell................................................         453,000
------------------------------------------------------------------------

    As mentioned previously, the NRC is currently reviewing 
applications to build and operate gas centrifuge uranium enrichment 
facilities. If these facilities are licensed to operate, they will be 
subject to an annual fee in accordance with the methodology described 
previously. The NRC's current plans are to establish a separate fee 
category for these facilities.
    b. Uranium Recovery Facilities. The total proposed FY 2006 budgeted 
cost to be recovered through annual fees assessed to the uranium 
recovery class is approximately $1.1 million. The derivation of this 
value is shown below, with FY 2005 values shown for comparison 
purposes. (Individual values may not sum to totals due to rounding.)

     Table IX.--Annual Fee Summary Calculations for Uranium Recovery
                               Facilities
                          [Dollars in millions]
------------------------------------------------------------------------
 Summary fee calculations uranium recovery fee    FY 2005      FY 2006
                     class                         final       proposed
------------------------------------------------------------------------
Total budgeted resources......................        $2.01        $2.34
Less estimated part 170 receipts..............        -1.30        -1.29
                                               ==============
    Net part 171 resources....................         0.71         1.05
Plus allocated generic transportation.........         +N/A         +N/A
Plus allocated surcharge......................        +0.01       +$0.01
Billing adjustments (including carryover and          -0.01       +$0.00
 budget rescission)...........................
                                               --------------

[[Page 7361]]

 
    Total required annual fee recovery........         0.70         1.07
------------------------------------------------------------------------

    The increase in budgeted resources reflects the reallocation of 
existing NRC FTE to uranium recovery licensing and inspection 
activities from other activities (e.g., Agreement State oversight). The 
part 170 estimate (as shown above) reflects an increase, over 
historical actual part 170 collections, to fully account for these 
additional activities. The FY 2006 part 170 estimate is not much 
different than the FY 2005 part 170 estimate because the FY 2005 
estimate was higher than the actual part 170 collections.
    Of the required annual fee collections, approximately $736,000 
would be assessed to DOE. The remaining $332,000 would be recovered 
through annual fees assessed to conventional mills, in-situ leach 
solution mining facilities, and 11e.(2) mill tailings disposal 
facilities (incidental to existing tailings sites).
    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 and generic/
other costs, for the uranium recovery class. The remaining 50 percent 
of the surcharge and generic/other costs are 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 in Table X.

   Table X.--Costs Recovered Through Annual Fees; Uranium Recovery Fee
                                  Class
------------------------------------------------------------------------
 
------------------------------------------------------------------------
DOE Annual Fee Amount [Uranium Mill Tailings Radiation
 Control Act (UMTRCA) Title I and Title II general
 licenses]:
    UMTRCA Title I budgeted costs.......................        $403,825
    50 percent of generic/other uranium recovery                 324,808
     budgeted costs.....................................
50 percent of uranium recovery surcharge................           7,010
                                                         ---------------
        Total Annual Fee Amount for DOE (rounded).......         736,000
Annual Fee Amount for UMTRCA Title II Specific Licenses:
    50 percent of generic/other uranium recovery                 324,808
     budgeted costs.....................................
    50 percent of uranium recovery surcharge............           7,010
                                                         ---------------
        Total Annual Fee Amount for Title II Specific            331,818
         Licenses.......................................
------------------------------------------------------------------------

    The matrix used to allocate the costs of various categories of 
Title II specific licensees has been reviewed and proposes to continue 
to equally weight, as in FY 2005, the effort levels for each category 
of uranium recovery facilities, in accordance with the NRC's FY 2006 
budgeted activities. As such, each non-DOE uranium recovery licensee 
would be assessed an equal share of the total annual fee amount for 
UMTRCA Title II specific licenses. Additionally, the NRC is proposing 
to maintain the existing approach for establishing part 171 annual fees 
for Title II uranium recovery licensees (established in the FY 1995 fee 
rule; 60 FR 32218, June 20, 1995). This approach 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 category 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 facility 
closure;
    (4) Each of the major program elements was further divided into 
three subelements; and
    (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 
categories of specifically licensed Title II uranium recovery licensees 
are as follows:

[[Page 7362]]



                            Table XI.--Weighted Factors for Uranium Recovery Licenses
----------------------------------------------------------------------------------------------------------------
                                                                                         Level of benefit total
                                                               Number of     Category            weight
                        Facility type                          facilities     weight   -------------------------
                                                                                           Value       Percent
----------------------------------------------------------------------------------------------------------------
Class I (conventional mills)................................            1          800          800           20
Class II (solution mining)..................................            3          800        2,400           60
11e.(2) disposal............................................            0            0            0            0
11e.(2) disposal incidental to existing tailings sites......            1          800          800           20
----------------------------------------------------------------------------------------------------------------

    Applying these factors to the approximately $332,000 in budgeted 
costs to be recovered from Title II specific licensees results in the 
following revised annual fees:

         Table XII.--Annual Fees for Title II Specific Licenses
------------------------------------------------------------------------
                                                              FY 2006
                      Facility type                         annual fee
------------------------------------------------------------------------
Class I (conventional mills)............................         $66,400
Class II (solution mining)..............................          66,400
11e.(2) disposal........................................             N/A
11e.(2) disposal incidental to existing tailings sites..          66,400
------------------------------------------------------------------------

    Note because there are no longer any 11e.(2) disposal facilities 
under the NRC's regulatory jurisdiction, the NRC has not allocated any 
budgeted resources for these facilities, and therefore has not 
established an annual fee for this fee category. If NRC issues a 
license for this fee category in the future, then the Commission will 
establish the appropriate annual fee.
    As discussed in section 2. ``Eliminating the Existing Fee Payment 
Exception for Uranium Recovery Licensees,'' the NRC is proposing that 
all Title II facilities be subject to the billing provisions of Sec.  
171.19(c), which state that annual fees that are less than $100,000 are 
billed on the anniversary date of the license.
    c. Operating Power Reactors. The approximately $362.7 million in 
budgeted costs proposed to be recovered through FY 2006 annual fees 
assessed to the power reactor class was calculated as shown in Table 
XIII. (FY 2005 values shown for comparison purposes; individual amounts 
may not sum to totals due to rounding.)

    Table XIII.--Annual Fee Summary Calculations for Operating Power
                                Reactors
                          [Dollars in millions]
------------------------------------------------------------------------
   Summary fee calculations operating power       FY 2005      FY 2006
              reactors fee class                   final       proposed
------------------------------------------------------------------------
Total budgeted resources......................       $440.7       $513.4
Less estimated part 170 receipts..............       -130.5       -158.2
                                               ==============
    Net part 171 resources....................        310.2        355.2
Plus allocated transportation.................        + N/A        + 1.5
Plus allocated surcharge......................        + 4.0       + $5.7
Billing adjustments (including carryover, any         - 2.6        + 0.2
 budget rescission............................
                                               --------------
    Total required annual fee recovery........        311.6        362.7
------------------------------------------------------------------------

    The budgeted costs to be recovered through annual fees to power 
reactors, including those for homeland security activities related to 
power reactors, is divided equally among the 104 power reactors 
licensed to operate. This results in a FY 2006 annual fee of $3,487,000 
per reactor. Additionally, each power reactor licensed to operate will 
be assessed the FY 2006 spent fuel storage/reactor decommissioning 
annual fee of $168,000. This results in a total FY 2006 annual fee of 
$3,655,000 for each power reactor licensed to operate.
    The proposed annual fee for power reactors increases due to an 
increase in budgeted resources for a number of activities, including 
regulatory infrastructure for new reactor licensing activities, 
preparations for future combined license applications, homeland 
security-related mitigating strategies, licensing tasks related to the 
aging of reactor systems and components, and evaluating and resolving 
operational issues. As shown previously, the NRC estimates an increase 
in part 170 collections of approximately 21 percent from operating 
power reactors; these collections offset the required annual fee 
recovery amount by a total of over $158 million.
    d. Spent Fuel Storage/Reactor Decommissioning. For FY 2006, 
budgeted costs of approximately $20.5 million for spent fuel storage/
reactor decommissioning are proposed 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

[[Page 7363]]

fees. Table XIV below shows the calculation of this annual fee amount. 
(FY 2005 values shown for comparison purposes; individual values may 
not sum to totals due to rounding.)

 Table XIV.--Annual Fee Summary Calculations for the Spent Fuel Storage/
                    Reactor Decommissioning Fee Class
                          [Dollars in millions]
------------------------------------------------------------------------
 Summary fee calculations spent fuel storage/     FY 2005      FY 2006
       reactor decommissioning fee class           final       proposed
------------------------------------------------------------------------
Total budgeted resources......................        $25.1        $27.0
Less estimated part 170 receipts..............         -5.7         -7.0
                                               ==============
    Net part 171 resources....................         19.4         20.0
Plus allocated generic transportation.........        + N/A         +0.4
Plus allocated surcharge......................         +0.1         +0.2
Billing adjustments (including carryover and,          -0.1          0.0
 budget rescission)...........................
-----------------------------------------------==============
    Total required annual fee recovery........         19.4         20.5
------------------------------------------------------------------------

    The required annual fee recovery amount is divided equally among 
the 122 licensees, resulting in a proposed FY 2006 annual fee of 
$168,000 per licensee. The value of total budgeted resources for this 
fee class increases due to an increase in contracts allocated for 
homeland security and licensing/certification activities, and the 
allocation of generic transportation resources. An increase of 
approximately 23 percent in estimated part 170 collections essentially 
offsets the required annual fee recovery amount for this fee class.
    e. Test and Research Reactors (Nonpower Reactors). Approximately 
$305,000 in budgeted costs is proposed to be recovered through annual 
fees assessed to the test and research reactor class of licenses for FY 
2006. Table XV summarizes the annual fee calculation for test and 
research reactors for FY 2006 (as compared to FY 2005).

    Table XV.--Annual Fee Summary Calculations for Test and Research
                                Reactors
                          [Dollars in millions]
------------------------------------------------------------------------
  Summary fee calculations/test and research      FY 2005      FY 2006
              reactors fee class                   final       proposed
------------------------------------------------------------------------
Total budgeted resources......................        $0.52        $0.88
Less estimated part 170 receipts..............        -0.28        -0.59
                                               ==============
    Net part 171 resources....................         0.24        -0.29
Plus allocated generic transportation.........          N/A        +0.01
Plus allocated surcharge......................         0.00        +0.01
Billing adjustments (including carryover and           0.00         0.00
 budget rescission)...........................
-------------------------------------------------------------
    Total required annual fee recovery........         0.24         0.31
------------------------------------------------------------------------

    This required annual fee recovery amount is divided equally among 
the four test and research reactors subject to annual fees, and results 
in a proposed FY 2006 annual fee of $76,300 for each licensee. This 
increase is due to a relatively large increase in budgeted resources 
for licensing activities for test and research reactors, which is part 
of an initiative to reduce a backlog of reactor licensing actions. 
Although the NRC estimates that much of this increase will result in an 
increase in estimated part 170 collections (which is factored into the 
part 170 estimates above), some of these resources are projected to be 
associated with non-licensee specific activities, and therefore will 
need to be recovered under part 171.
    f. Rare Earth Facilities. The FY 2006 budgeted costs of $97,900 for 
rare earth facilities to be recovered through annual fees would be 
assessed to the one licensee who has a specific license for receipt and 
processing of source material, resulting in a FY 2006 annual fee of 
$97,900. Table XVI summarizes the annual fee calculation for the rare 
earth fee class for FY 2006 (as compared to FY 2005). (Individual 
values may not sum to totals due to rounding.)

  Table XVI.--Annual Fee Summary Calculations for Rare Earth Facilities
                          [Dollars in millions]
------------------------------------------------------------------------
                                                  FY 2005      FY 2006
 Summary fee calculations rare earth fee class     final       proposed
------------------------------------------------------------------------
Total budgeted resources......................       $0.875       $0.832
Less estimated part 170 receipts..............       -0.800       -0.740
                                               ==============
    Net part 171 resources....................        0.075        0.092

[[Page 7364]]

 
Plus allocated generic transportation.........         +N/A         +N/A
Plus allocated surcharge......................       +0.000       +0.005
Billing adjustments (including carryover and         -0.000      +$0.000
 budget rescission)...........................
                                               --------------
    Total required annual fee recovery........        0.074        0.098
------------------------------------------------------------------------

    The total allocated resources for this fee class decrease slightly 
in FY 2006, but the annual fee increases due to lower estimated part 
170 collections.
    g. Materials Users. Table XVII below shows the calculation of the 
proposed FY 2006 annual fee amount for materials users licensees. (FY 
2005 values shown for comparison purposes; individual values may not 
sum to totals due to rounding.)

    Table XVII.--Annual Fee Summary Calculations for Materials Users
                          [Dollars in millions]
------------------------------------------------------------------------
 Summary fee calculations/materials users fee     FY 2005      FY 2006
                     class                         final       proposed
------------------------------------------------------------------------
Total budgeted resources......................        $27.5        $30.5
Less estimated part 170 receipts..............         -1.9         -2.1
                                               ==============
    Net part 171 resources....................         25.6         28.4
Plus allocated generic transportation.........         +N/A         +1.3
Plus allocated surcharge......................         +0.6         +0.8
Billing adjustments (including carryover and           -0.1         +0.0
 budget rescission)...........................
                                               --------------
    Total required annual fee recovery........         26.0         30.5
------------------------------------------------------------------------

    To equitably and fairly allocate the $30.5 million in FY 2006 
budgeted costs to be recovered in annual fees assessed to the 
approximately 4,500 diverse materials users and registrants, the NRC 
has continued to base the annual fees for each fee category within this 
class on the part 170 application fees and estimated inspection costs 
for each fee category. 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 materials users 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 
$22.3 million in general costs (including allocated generic 
transportation costs) and is 1.22 for FY 2006. The inspection 
multiplier is the multiple necessary to recover approximately $7.2 
million in inspection costs, and is 1.51 for FY 2006. The unique 
category costs are any special costs that the NRC has budgeted for a 
specific category of licenses. For FY 2006, approximately $116,000 in 
budgeted costs for the implementation of revised 10 CFR 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 $158,000 in surcharge costs allocated to the materials user class 
of licenses and, for certain categories of these licenses, a share of 
the approximately $631,000 in LLW surcharge costs allocated to the 
class. The annual fee for each fee category is shown in Sec.  
171.16(d).
    The proposed annual fees for materials licensees increase in FY 
2006 mainly because of an increase in budgeted resources for activities 
relating to information technology/tracking systems for these types of 
licensees (including tracking that relates to homeland security 
purposes), increases for inspection activities, and the allocation of 
generic transportation resources. Increases in annual fees for 
materials users licensees (other than master materials licenses, for 
which the annual fee increased 47 percent) range from approximately 
five percent to approximately 21 percent. These changes reflect the 
overall increase of over 17 percent in budgeted resources to be 
recovered through annual fees to this fee class; the actual percentage 
increase for different fee categories varies mainly because of the 
difference in how inspection versus other types of resources are 
distributed to the fee categories. For example, the inspection 
resources to be recovered through annual fees increased more than non-
inspection resources from FY 2005 to FY 2006. Those fee categories that 
receive a relatively larger share of these inspection budgeted costs 
(due to their higher average hours per inspection), have proposed 
annual fees that increase somewhat more than other fee categories, as 
compared to FY 2005.
    h. Transportation. Table XVIII shows the calculation of the 
proposed FY 2006 generic transportation budgeted resources to be 
recovered through annual fees. (FY 2005 values shown for comparison 
purposes.)

[[Page 7365]]



    Table XVIII.--Annual Fee Summary Calculations for Transportation
                          [Dollars in millions]
------------------------------------------------------------------------
  Summary fee calculations/transportation fee     FY 2005      FY 2006
                     class                         Ffinal      proposed
------------------------------------------------------------------------
Total budgeted resources......................         $5.4         $6.6
Less estimated part 170 receipts..............         -1.1         -1.3
                                               ==============
    Net part 171 resources (required annual             4.3          5.3
     fee recovery)............................
------------------------------------------------------------------------

    As discussed previously in more detail, the NRC is proposing to 
recover generic transportation costs unrelated to DOE as part of 
existing annual fees for license fee classes. Under this approach, the 
annual fee for fee categories 10.B.1 and 10.B.2 under Sec.  171.16 
would be eliminated, but the NRC would continue to assess a separate 
annual fee under Sec.  171.16, fee category 18.A, for DOE 
transportation activities.
    The total FY 2006 budgeted resources for generic transportation 
activities, including those to support DOE CoCs, is $5.3 million. 
[Generic transportation resources associated with fee-exempt entities 
are not included in this total; these costs are included in the 
appropriate surcharge category (e.g., the surcharge category for 
nonprofit educational institutions).] These resources are distributed 
to DOE (to be included in its annual fee under fee category 18.A of 
Sec.  171.16) and each license fee class based on the CoCs used by DOE 
and each fee class, as a proxy for the generic resources expended for 
each fee class. (Note the number of CoCs used by fee class is adjusted 
to take into account the percentage of licensees in that fee class 
subject to annual fees, as explained previously.) As such, the amount 
of the generic resources allocated is calculated by multiplying the 
percentage of total CoCs used by each fee class (and DOE) by the total 
generic transportation resources to be recovered. The distribution of 
these resources to the license fee classes and DOE is as follows 
(individual values may not sum to total due to rounding):

  Table XIX.--Distribution of Generic Transportation Resources, FY 2006
                          [Dollars in millions]
------------------------------------------------------------------------
                                 Number of
                                    CoCs      Percentage     Allocated
     License fee class/DOE      benefitting    of total       generic
                                 fee class      CoCs*     transportation
                                  (or DOE)                   resources
------------------------------------------------------------------------
Operating Power Reactors......           39         29.0          $1.54
Spent Fuel Storage/Reactor                9          6.7           0.36
 Decommissioning..............
Test and Research Reactors....          0.3          0.2           0.01
Fuel Facilities...............           21         15.6           0.83
Materials Users...............           32         23.9           1.27
DOE...........................           33         24.6           1.30
                               --------------
    Total.....................          134          100          5.31
------------------------------------------------------------------------
* Note the percentages presented here are somewhat different than those
  presented above under Section 2, ``Recovering Generic Transportation
  Costs as Part of Other Existing Annual Fees'' because DOE is included
  in the totals in this Section.

    The NRC proposes to continue to assess DOE an annual fee based on 
the part 71 CoCs it holds. The NRC is not proposing to allocate these 
DOE-related resources to other licensees' annual fees because these 
resources specifically support DOE; hence the current fee recovery 
methodology for these resources remains efficient and equitable. Note 
that DOE's annual fee includes a portion of the surcharge, resulting in 
a total annual fee of $1,321,000 for FY 2006. This fee increases from 
last year due to budgeted increases for safeguards and licensing/
certification activities.
4. Eliminating the Existing Fee Payment Exception for Uranium Recovery 
Licensees
    Under the payment provisions of Sec.  171.19, the NRC currently 
bills licensees' part 171 fees annually if their annual fees are less 
than $100,000, and quarterly if their annual fees are $100,000 or more. 
However, the NRC bills Class I and Class II uranium recovery licensees 
quarterly in accordance with Sec.  171.19(b), regardless of the amount 
of their annual fee. The NRC established this payment exception for 
Class I and Class II uranium recovery licensees in the FY 2001 final 
rule (66 FR 32452; June 14, 2001) because the annual fees for these 
licensees had been fluctuating just above or below $100,000. Since 
then, uranium recovery license fees have been well below $100,000. 
Because this billing exception is no longer needed and is 
administratively burdensome to implement with the current fee billing 
system, the NRC is proposing to eliminate the billing exception for 
Class I and Class II uranium recovery licensees. These licensees would 
become subject to the same payment provisions as all other licensees, 
as described above.
5. Agreement State Activities
    By letter dated July 6, 2004, Governor Tim Pawlenty of Minnesota 
requested that the NRC enter into an Agreement with the State as 
authorized by Section 274 of the Atomic Energy Act of 1954, as amended. 
The NRC staff has evaluated the Minnesota request and application and 
has proceeded with the processing of the application. The comment 
period on the draft assessment of the Minnesota proposed program closed 
on December 9, 2005, and the staff is proceeding through the process 
with an effective date for the Agreement of March 31, 2006.

[[Page 7366]]

    The Commission approved this Agreement on January 26, 2006, and is 
proceeding with the signing process which should be completed in 
February 2006. Approximately 150 licenses will be transferred by the 
effective date of March 31, 2006 to the State of Minnesota from the 
NRC. Note that in accordance with Sec.  171.17(b), materials licenses 
transferred to a new Agreement State during the fiscal year are 
considered terminated by the NRC; as such, the annual fees associated 
with these licenses are adjusted accordingly (i.e., a license will be 
assessed a 50 percent prorated annual fee if it terminates between 
October 1 and March 31, and a full annual fee if it terminates between 
April 1 and September 30). The continuing costs of Agreement State 
regulatory support and oversight for Minnesota, as for any other 
Agreement State, will be recovered through the surcharge (as reduced by 
the ten percent of its budget that the NRC receives in appropriations 
each year for these types of activities), consistent with existing 
policy.
    The fees in this proposed rule do not reflect the transfer of 
licensees to the State of Minnesota because the Agreement has not yet 
been signed (as of the signature date of this rule). The final fee rule 
will reflect this change which should occur before its publication.
6. Administrative Amendments
    The NRC is proposing to clarify the definition of ``overhead and 
general and administrative costs'' under Sec.  171.5. This definition 
provides examples of organizations that are included as ``indirect 
costs.'' The NRC would like to clarify that certain costs of some of 
these organizations are not considered to be indirect; therefore, in 
these instances, these costs are not included in overhead and general 
and administrative costs. For example, the Atomic Safety and Licensing 
Board Panel is listed as an indirect office in this definition. There 
are instances in which this Panel performs direct mission-related work, 
and the budgeted resources for these activities are considered to be 
direct in the fee calculations (consistent with the categorization of 
these resources in the NRC's budget). The NRC believes this 
clarification will better reflect the most recent data on the types of 
budgeted resources associated with these offices. Additionally, this 
definition would be revised to eliminate reference to an organization 
within the agency that no longer exists.
    In summary, the NRC is proposing to--
    1. Proceed with the presumption in favor of rebaselining beginning 
with the FY 2006 fee rule;
    2. Recover generic transportation costs as part of other existing 
annual fees;
    3. Revise the annual fees to reflect the FY 2006 budget and other 
changes;
    4. Eliminate the existing fee payment exception for Class I and 
Class II uranium recovery licensees;
    5. Revise the number of NRC licensees if Minnesota becomes an 
Agreement State before the publication of the FY 2006 final fee rule; 
and
    6. Make an administrative change to clarify the definition of 
``overhead and general and administrative costs.''

III. Plain Language

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

IV. Voluntary Consensus Standards

    The National Technology Transfer and Advancement Act of 1995, 
Public Law 104-113, requires that Federal agencies use technical 
standards that are developed or adopted by voluntary consensus 
standards bodies unless using these standards is inconsistent with 
applicable law or is otherwise impractical. In this proposed rule, the 
NRC would amend the licensing, inspection, and annual fees charged to 
its licensees and applicants as necessary to recover approximately 90 
percent of its budget authority in FY 2006 as 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 
under 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

[[Page 7367]]

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 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. As 
mentioned previously, the FY 2001 EWDAA 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 FY 2006 
EWDAA extended this 90 percent fee recovery requirement through FY 
2006. As a result, the NRC is required to recover approximately 90 
percent of its FY 2006 budget authority, less the amounts appropriated 
from the NWF and for WIR activities, through fees. To comply with this 
statutory requirement and in accordance with Sec.  171.13, the NRC is 
publishing the amount of the FY 2006 annual fees for reactor licensees, 
fuel cycle licensees, materials licensees, and holders of Certificates 
of Compliance, registrations of sealed source and devices, 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 90 percent of the 
Commission's FY 2006 budget of $741.5 million less the funds directly 
appropriated from the NWF to cover the NRC's high-level waste program 
and for WIR activities, and less the amount of funds collected from 
part 170 fees;
    (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 90 percent of its FY 2006 
budget authority through the assessment of user fees. This Act further 
requires that the NRC establish a schedule of charges that fairly and 
equitably allocates the aggregate amount of these charges among 
licensees.
    This proposed rule would establish the schedules of fees that are 
necessary to implement the Congressional mandate for FY 2006. 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 Congressional Review Act of 1996 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 2006.

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 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); sec. 1704, 112 Stat. 2750 (44 U.S.C. 3504 note), 
sec. 623, Pub. L. 109-58, 119 Stat. 783, (42 U.S.C. 2201(w)).

    2. In Sec.  170.3, the definition of special projects is revised to 
read as follows:


Sec.  170.3  Definitions.

* * * * *
    Special projects means those requests submitted to the Commission 
for review for which fees are not otherwise specified in this chapter 
and contested hearings on licensing actions directly related to U.S. 
Government national security initiatives, as determined by the NRC. 
Examples of special projects include, but are not limited to, contested 
hearings on licensing actions directly related to Presidentially 
directed national security programs, topical report reviews, early site 
reviews, waste solidification facilities, activities related to the 
tracking and monitoring of shipment of classified matter, services 
provided to certify licensee, vendor, or other private industry 
personnel as instructors for part 55 reactor operators, reviews of 
financial assurance submittals that do not require a license amendment, 
reviews of responses to Confirmatory Action Letters, reviews of uranium 
recovery licensees' land-use survey reports, and reviews of 10 CFR 
50.71 final safety analysis reports. Special projects does not include 
those contested hearings for which a fee exemption is granted in Sec.  
170.11(a)(2),

[[Page 7368]]

including those related to individual plant security modifications.
* * * * *
    3. In Sec.  170.11, paragraph (a)(5) is removed and reserved, and 
paragraphs (a)(4)(iii), (a)(9) introductory text, (i), and (ii) are 
revised as follows:


Sec.  170.11  Exemptions.

    (a) * * *
    (4) * * *
    (iii) Distribution of byproduct material, source material, or 
special nuclear material or products containing byproduct material, 
source material or special nuclear material; or
* * * * *
    (9) Federally-owned and State-owned research reactors used 
primarily for educational training and academic research purposes. For 
purposes of this exemption, the term research reactor means a nuclear 
reactor that--
    (i) Is licensed by the Nuclear Regulatory Commission under section 
104c. of the Atomic Energy Act of 1954 (42 U.S.C. 2134 (c)) at a 
thermal power level of 10 megawatts or less; and
    (ii) If so licensed at a thermal power level of more than 1 
megawatt, does not contain--
* * * * *
    4. Section 170.20 is revised to read as follows:


Sec.  170.20  Average cost per professional staff-hour.

    Fees for permits, licenses, amendments, renewals, special projects, 
part 55 re-qualification and replacement examinations and tests, other 
required reviews, approvals, and inspections under 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, excluding reactor 
decommissioning and import/export licensing activities): $217 per hour
    (b) Nuclear Materials and Nuclear Waste Program (Sec.  170.31 
Activities, as well as the reactor decommissioning and import/export 
licensing activities covered under Sec.  170.21): $215 per hour
    5. In Sec.  170.21, Category K and footnotes 1 and 4 in the table 
are revised to read as follows:


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

* * * * *

                        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
         production and utilization facilities \4\
         (including reactors and other facilities) and
         exports of components requiring Commission and
         Executive Branch review, for example, actions
         under 10 CFR 110.40(b).
            Application--new license, or amendment......         $14,000
        2. Application for export of reactor and other
         components requiring Executive Branch review
         only, for example, those actions under 10 CFR
         110.41(a)(1)-(8).
            Application--new license, or amendment......           8,200
        3. Application for export of components
         requiring the assistance of the Executive
         Branch to obtain foreign government assurances.
            Application--new license, or amendment......           2,600
        4. Application for export of facility components
         and equipment (examples provided in 10 CFR part
         110, Appendix A, Items (5) through (9)) not
         requiring Commission or Executive Branch
         review, or obtaining foreign government
         assurances.
            Application--new license, or amendment......           1,700
        5. Minor amendment of any active export or
         import license, for example, to extend the
         expiration date, change domestic information,
         or make other revisions which do not involve
         any substantive changes to license terms or
         conditions or to the type of facility or
         component authorized for export and therefore,
         do not require in-depth analysis or review or
         consultation with the Executive Branch, U.S.
         host state, or foreign government authorities.
            Minor amendment.............................            320
------------------------------------------------------------------------
\1\ Fees will not be charged for orders related to civil penalties or
  other civil sanctions issued by the Commission under Sec.   2.202 of
  this chapter or for amendments resulting specifically from the
  requirements of these orders. For orders unrelated to civil penalties
  or other civil sanctions, fees will be charged for any resulting
  licensee-specific activities not otherwise exempted from fees under
  this chapter. 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.
* * * * * * *

[[Page 7369]]

 
\4\ Imports only of major components for end-use at NRC-licensed
  reactors are now authorized under NRC general import license.

    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. For those fee categories identified to be subject to full 
cost fees, full cost fees will be assessed for all licensing and 
inspection activities, unless otherwise indicated.

                       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.(1) Licenses for possession and use of U-
     235 or plutonium for fuel fabrication
     activities.
        (a) Strategic Special Nuclear Material   Full Cost.
         (High Enriched Uranium).
        (b) Low Enriched Uranium in Dispersible  Full Cost.
         Form Used for Fabrication of Power
         Reactor Fuel.
    (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.  Full Cost.
        (b) Gas centrifuge enrichment            Full Cost.
         demonstration facilities.
        (c) Hot cell facilities................  Full Cost.
    B. Licenses for receipt and storage of       Full Cost.
     spent fuel 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 nuclear material in sealed sources
     contained in devices used in industrial
     measuring systems, including x-ray
     fluorescence analyzers: \4\
        Application............................  $990.
    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............................  $2,000.
    E. Licenses or certificates for              Full Cost.
     construction and operation of a uranium
     enrichment facility.
2. Source material:
    A.(1) Licenses for possession and use of     Full Cost.
     source 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.
        (a) Class I facilities \4\.............  Full Cost.
        (b) Class II facilities \4\............  Full Cost.
        (c) Other facilities \4\...............  Full Cost.
    (3) Licenses that authorize the receipt of   Full Cost.
     byproduct material, as defined in Section
     11e.(2) of the Atomic Energy Act, from
     other persons for possession and disposal,
     except those licenses subject to the fees
     in Category 2A(2) or Category 2A(4).
    (4) Licenses that authorize the receipt of   Full Cost.
     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(2).
    B. Licenses which authorize the possession,
     use, and/or installation of source
     material for shielding:
        Application............................  $240.
    C. All other source material licenses:
        Application............................  $8,400.
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............................  $10,100.
    B. Other licenses for possession and use of
     byproduct material issued under part 30 of
     this chapter for processing or
     manufacturing of items containing
     byproduct material for commercial
     distribution:
        Application............................  $3,800.
    C. Licenses issued under Sec.  Sec.   32.72
     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............................  $5,200.
    D. Licenses and approvals issued under Sec.
      Sec.   32.72 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 and/or
     32.74 of this chapter to nonprofit
     educational institutions whose processing
     or manufacturing is exempt under Sec.
     170.11(a)(4).
        Application............................  $3,700.
    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............................  $2,500.

[[Page 7370]]

 
    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............................  $5,000.
    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............................  $12,000.
    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............................  $14,600.
    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............................  $8,700.
    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............................  $1,500.
    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............................  $880.
    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............................  $8,400.
    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............................  $3,400.
    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............................  $3,800.
    O. Licenses for possession and use of
     byproduct material issued under part 34 of
     this chapter for industrial radiography
     operations:
        Application............................  $3,500.
    P. All other specific byproduct material
     licenses, except those in Categories 4A
     through 9D:
        Application............................  $1,200.
    Q. Registration of a device(s) generally
     licensed under part 31 of this chapter:
        Registration...........................  $730.
4. Waste disposal and processing:
    A. Licenses specifically authorizing the     Full Cost.
     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.
    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............................  $2,600.
    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............................  $3,900.
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............................  $1,400.
    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............................  $17,100.
7. Medical licenses:

[[Page 7371]]

 
    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............................  $9,400.
    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............................  $6,700.
    C. Other licenses issued under parts 30,
     35, 40, and 70 of this chapter for human
     use of byproduct material, source
     material, and/or special nuclear material,
     except licenses for byproduct material,
     source material, or special nuclear
     material in sealed sources contained in
     teletherapy devices:
        Application............................  $2,300.
8. Civil defense:
    A. Licenses for possession and use of
     byproduct material, source material, or
     special nuclear material for civil defense
     activities:
        Application............................  $490.
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...............  $21,000.
    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...............  $21,000.
    C. Safety evaluation of sealed sources
     containing byproduct material, source
     material, or special nuclear material,
     except reactor fuel, for commercial
     distribution:
        Application--each source...............  $2,400.
    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...............  $820.
10. Transportation of radioactive material:
    A. Evaluation of casks, packages, and
     shipping containers:
        1. Spent Fuel, High-Level Waste, and     Full Cost.
         plutonium air packages.
        2. Other Casks.........................  Full Cost.
    B. Quality assurance program approvals
     issued under part 71 of this chapter.
        1. Users and Fabricators
            Application........................  $5,600.
            Inspections........................  Full Cost.
        2. Users
            Application........................  $5,600.
            Inspections........................  Full Cost.
    C. Evaluation of security plans, route       Full Cost.
     approvals, route surveys, and
     transportation security devices (including
     immobilization devices).
11. Review of standardized spent fuel            Full Cost.
 facilities.
12. Special projects:
    Including approvals, preapplication/         Full Cost.
     licensing activities, and inspections.
13. A. Spent fuel storage cask Certificate of    Full Cost.
 Compliance.
    B. Inspections related to storage of spent   Full Cost.
     fuel under Sec.   72.210 of this chapter.
14. A. Byproduct, source, or special nuclear     Full Cost.
 material licenses and other approvals
 authorizing decommissioning, decontamination,
 reclamation, or site restoration activities
 under parts 30, 40, 70, 72, and 76 of this
 chapter.
    B. Site-specific decommissioning activities  Full Cost.
     associated with unlicensed sites,
     regardless of whether or not the sites
     have been previously licensed. Part 170
     fees for these activities will not be
     charged until July 25, 2006.
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, and
     the export only of heavy water, or nuclear
     grade graphite (fee categories 15.A
     through 15.E).
        A. Application for export or import of
         nuclear materials, including
         radioactive waste requiring Commission
         and Executive Branch review, for
         example, those actions under 10 CFR
         110.40(b).
            Application--new license, or         $14,000.
             amendment.
        B. Application for export or import of
         nuclear material, including
         radioactive waste, requiring Executive
         Branch review, but not Commission
         review. This category includes
         applications for the export and import
         of radioactive waste and requires NRC
         to consult with domestic host state
         authorities, Low-Level Radioactive
         Waste Compact Commission, the U.S.
         Environmental Protection Agency, etc.
            Application--new license, or         $8,200.
             amendment.
        C. Application for export of nuclear
         material, for example, routine reloads
         of low enriched uranium reactor fuel
         and/or natural uranium source material
         requiring the assistance of the
         Executive Branch to obtain foreign
         government assurances.
            Application--new license, or         $2,600.
             amendment.

[[Page 7372]]

 
        D. Application for export or import of
         nuclear material, including
         radioactive waste, not requiring
         Commission or Executive Branch review,
         or obtaining foreign government
         assurances. This category includes
         applications 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
         located in the same country, 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, or         $1,700.
             amendment.
        E. Minor amendment of any active export
         or import license, for example, to
         extend the expiration date, change
         domestic information, or make other
         revisions which do not involve any
         substantive changes to license terms
         and conditions or to the type/quantity/
         chemical composition of the material
         authorized for export and therefore,
         do not require in-depth analysis,
         review, or consultations with other
         Executive Branch, U.S. host state, or
         foreign government authorities.
            Minor amendment....................  $320.
    Licenses issued under Part 110 of this
     chapter for the import and export only of
     Category 1 and Category 2 quantities of
     radioactive material listed in Appendix P
     to Part 110 (fee categories 15.F through
     15.R).\5\
    Category 1 Exports
        F. Application for export of Category 1
         materials involving an exceptional
         circumstances review under 10 CFR
         110.42(e)(4).
            Application--new license, or         $14,000.
             amendment.
        G. Application for export of Category 1
         materials requiring Executive Branch
         review, Commission review, and
         government to government consent.
            Application--new license, or         $8,200.
             amendment.
        H. Application for export of Category 1
         materials requiring Commission review
         and government to government consent.
            Application--new license, or         $5,200.
             amendment.
        I. Application for export of Category 1
         material requiring government to
         government consent.
            Application--new license, or         $4,300.
             amendment.
    Category 2 Exports
        J. Application for export of Category 2
         materials involving an exceptional
         circumstances review under 10 CFR
         110.42(e)(4)).
            Application--new license, or         $14,000.
             amendment.
        K. Applications for export of Category
         2 materials requiring Executive Branch
         review and Commission review.
            Application--new license, or         $8,200.
             amendment.
        L. Application for the export of
         Category 2 materials.
            Application--new license, or         $3,900.
             amendment.
    Category 1 Imports
        M. Application for the import of
         Category 1 material requiring
         Commission review.
            Application--new license, or         $4,100.
             amendment.
        N. Application for the import of
         Category 1 material.
            Application--new license, or         $3,400.
             amendment.
    Category 2 Imports
        O. Application for the import of
         Category 2 material.
            Application--new license, or         $3,000.
             amendment.
    Category 1 Imports with Agent and Multiple
     Licensees
        P. Application for the import of
         Category 1 material with agent and
         multiple licensees requiring
         Commission review.
            Application--new license, or         $4,700.
             amendment.
        Q . Application for the import of
         Category 1 material with agent and
         multiple licensees.
            Application--new license, or         $3,900.
             amendment.
    Minor Amendments (Category 1 and 2 Export
     and Imports)
        R. Minor amendment of any active export
         or import license, for example, to
         extend the expiration date, change
         domestic information, or make other
         revisions which do not involve any
         substantive changes to license terms
         and conditions or to the type/quantity/
         chemical composition of the material
         authorized for export and therefore,
         do not require in-depth analysis,
         review, or consultations with other
         Executive Branch, U.S. host state, or
         foreign authorities.
            Minor amendment....................  $ 320.
16. Reciprocity:
    Agreement State licensees who conduct
     activities under the reciprocity
     provisions of 10 CFR 150.20.
        Application............................  $1,900.
17. Master materials licenses of broad scope     $17,800.
 issued to Government agencies.
18. Department of Energy
    A. Certificates of Compliance. Evaluation    Full Cost.
     of casks, packages, and shipping
     containers (including spent fuel, high-
     level waste, and other casks, and
     plutonium air packages).
    B. Uranium Mill Tailings Radiation Control   Full Cost.
     Act (UMTRCA) activities.
------------------------------------------------------------------------
\1\ Types of fees--Separate charges, as shown in the schedule, will be
  assessed for pre-application consultations and reviews; applications
  for new licenses, approvals, or license terminations; possession only
  licenses; 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.

[[Page 7373]]

 
(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 related to civil penalties or
  other civil sanctions issued by the Commission under 10 CFR 2.202 or
  for amendments resulting specifically from the requirements of these
  orders. For orders unrelated to civil penalties or other civil
  sanctions, fees will be charged for any resulting licensee-specific
  activities not otherwise exempted from fees under this chapter. 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.
\5\ For a combined import and export license application for material
  listed in Appendix P to part 110, only the higher of the two
  applicable fee amounts must be paid.

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

    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), and as amended by Title 
IV, Pub. L. 109-108, 119 Stat. 2283 (42 U.S.C. 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); sec. 1704, 112 Stat. 
2750 (44 U.S.C. 3504 note).

    8. In Sec.  171.5, the definition of Overhead and general and 
administrative costs is revised to read as follows:


Sec.  171.5  Definitions.

* * * * *
    Overhead and general and administrative costs means:
    (1) The Government benefits for each employee such as leave and 
holidays, retirement and disability benefits, health and life insurance 
costs, and social security costs;
    (2) Travel costs;
    (3) Direct overhead, e.g., supervision and support staff that 
directly support the NRC safety mission areas (administrative support 
costs, e.g., rental of space, equipment, telecommunications and 
supplies); and
    (4) Indirect costs that would include, but not be limited to, NRC 
central policy direction, legal and executive management services for 
the Commission and special and independent reviews, investigations, and 
enforcement and appraisal of NRC programs and operations. Some of the 
organizations included, in whole or in part, are the Commissioners, 
Secretary, Executive Director for Operations, General Counsel, 
Government and Public Affairs (except for international safety and 
safeguards programs), Inspector General, Investigations, Enforcement, 
Small and Disadvantaged Business Utilization and Civil Rights, the 
Technical Training Center, Advisory Committees on Nuclear Waste and 
Reactor Safeguards, and the Atomic Safety and Licensing Board Panel. 
The Commission views these budgeted costs as support for all its 
regulatory services provided to applicants, licensees, and certificate 
holders, and these costs must be recovered under Pub. L. 101-508.
* * * * *
    9. 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 2005 annual fee for each operating power reactor 
which must be collected by September 30, 2005, is $3,655,000.
    (2) The FY 2006 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 2006 spent storage/
reactor decommissioning base annual fee are shown in paragraphs 
(c)(2)(i) and (ii) of this section. The activities comprising the FY 
2006 surcharge are shown in paragraph (d)(1) of this section. The 
activities comprising the FY 2006 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 2006 annual fee for each power reactor holding a part 
50 license that is in a decommissioning or

[[Page 7374]]

possession only status and has spent fuel onsite and each independent 
spent fuel storage part 72 licensee who does not hold a part 50 license 
is $168,000.
    (2) The FY 2006 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 2006 surcharge are shown in paragraph (d)(1) of this 
section. The activities comprising the FY 2006 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 2006 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, decommissioning activities for unlicensed sites, and 
activities for unregistered general licensees); 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 2006 surcharge allocated to the operating power 
reactor class of licenses is $5.7 million, not including the amount 
allocated to the spent fuel storage/reactor decommissioning class. The 
FY 2006 operating power reactor surcharge to be assessed to each 
operating power reactor is approximately $55,000. This amount is 
calculated by dividing the total operating power reactor surcharge 
($5.7 million) by the number of operating power reactors (104).
    (3) The FY 2006 surcharge allocated to the spent fuel storage/
reactor decommissioning class of licenses is $166,000. The FY 2006 
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 $1,400. 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 onsite, and part 72 licensees who do not 
hold a part 50 license.
    (e) The FY 2006 annual fees for licensees authorized to operate a 
test and research (non-power) 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...........................................     $76,300.
Test reactor...............................................     $76,300.
 

    10. In Sec.  171.16, paragraph (d) is 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.

* * * * *
    (d) The FY 2006 annual fees are comprised of a base annual fee and 
an additional charge (surcharge). The activities comprising the FY 2006 
surcharge are shown for convenience in paragraph (e) of this section. 
The FY 2006 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 nuclear material:
    A. (1) Licenses for possession and use of U-235 or
     plutonium for fuel fabrication activities.
        (a) Strategic Special Nuclear Material (High          $5,579,000
         Enriched Uranium)..............................
        (b) Low Enriched Uranium in Dispersible Form           1,643,000
         Used for Fabrication of Power Reactor Fuel.....
    (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..........         623,000
        (b) Gas centrifuge enrichment demonstration            1,019,000
         facilities.....................................
        (c) Hot cell facilities.........................         453,000
    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                  2,400
     nuclear material in sealed sources contained in
     devices used in industrial measuring systems,
     including x-ray fluorescence analyzers.............
    D. All other special nuclear material licenses,                6,800
     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         3,115,000
     uranium enrichment facility........................
2. Source material:
    A. (1) Licenses for possession and use of source           1,076,000
     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.
        (a) Class I facilities \4\......................          66,400
        (b) Class II facilities \4\.....................          66,400
        (c) Other facilities \4\........................          97,900

[[Page 7375]]

 
    (3) Licenses that authorize the receipt of byproduct         \5\ N/A
     material, as defined in Section 11e.(2) of the
     Atomic Energy Act, from other persons for
     possession and disposal, except those licenses
     subject to the fees in Category 2A(2) or Category
     2A(4)..............................................
    (4) Licenses that authorize the receipt of byproduct          66,400
     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              880
     and/or installation of source material for
     shielding..........................................
    C. All other source material licenses...............          14,800
3. Byproduct material:
    A. Licenses of broad scope for possession and use of          28,800
     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                    9,300
     byproduct material issued under part 30 of this
     chapter for processing or manufacturing of items
     containing byproduct material for commercial
     distribution.......................................
    C. Licenses issued under Sec.  Sec.   32.72 and/or            11,700
     32.74 of this chapter authorizing the processing or
     manufacturing and distribution or redistribution of
     radiopharmaceuticals, generators, reagent kits and/
     or sources and devices containing byproduct
     material. This category also includes the
     possession and use of source material for shielding
     authorized under part 40 of this chapter when
     included on the same license. This category does
     not apply to licenses issued to nonprofit
     educational institutions whose processing or
     manufacturing is exempt under Sec.   171.11(a)(1).
     These licenses are covered by fee under Category 3D
    D. Licenses and approvals issued under Sec.  Sec.              6,800
     32.72 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 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                4,800
     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                8,600
     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           31,000
     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              19,400
     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              11,800
     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               3,200
     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               1,900
     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          16,400
     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                    6,900
     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                  7,300
     licensees, except: (1) Licenses that authorize only
     calibration and/or leak testing services are
     subject to the fees specified in fee Category 3P;
     and (2) Licenses that authorize waste disposal
     services are subject to the fees specified in fee
     categories 4A, 4B, and 4C..........................
    O. Licenses for possession and use of byproduct               15,300
     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,             2,900
     except those in Categories 4A through 9D...........
    Q. Registration of devices generally licensed under         \13\ N/A
     part 31 of this chapter............................
4. Waste disposal and processing:
    A. Licenses specifically authorizing the receipt of          \5\ N/A
     waste byproduct material, source material, or
     special nuclear material from other persons for the
     purpose of contingency storage or commercial land
     disposal by the licensee; or licenses authorizing
     contingency storage of low-level radioactive waste
     at the site of nuclear power reactors; or licenses
     for receipt of waste from other persons for
     incineration or other treatment, packaging of
     resulting waste and residues, and transfer of
     packages to another person authorized to receive or
     dispose of waste material..........................
    B. Licenses specifically authorizing the receipt of           12,700
     waste byproduct material, source material, or
     special nuclear material from other persons for the
     purpose of packaging or repackaging the material.
     The licensee will dispose of the material by
     transfer to another person authorized to receive or
     dispose of the material............................

[[Page 7376]]

 
    C. Licenses specifically authorizing the receipt of            9,600
     prepackaged waste byproduct material, source
     material, or special nuclear material from other
     persons. The licensee will dispose of the material
     by transfer to another person authorized to receive
     or dispose of the material.........................
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          27,500
     items contaminated with byproduct material, source
     material, or special nuclear material..............
7. Medical licenses:
    A. Licenses issued under parts 30, 35, 40, and 70 of          15,100
     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                  32,600
     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           6,000
     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                1,900
     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          25,900
     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          25,900
     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           3,000
     sealed sources containing byproduct material,
     source material, or special nuclear material,
     except reactor fuel, for commercial distribution...
    D. Registrations issued for the safety evaluation of           1,000
     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.
        1. Spent Fuel, High-Level Waste, and plutonium           \6\ N/A
         air packages...................................
        2. Other Casks..................................         \6\ N/A
    B. Quality assurance program approvals issued under
     part 71 of this chapter.
        1. Users and Fabricators........................         \6\ N/A
        2. Users........................................         \6\ N/A
    C. Evaluation of security plans, route approvals,            \6\ N/A
     route surveys, and transportation security devices
     (including immobilization devices).................
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. Decommissioning/Reclamation:
    A. 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.........................
    B. Site-specific decommissioning activities                  \7\ N/A
     associated with unlicensed sites, regardless of
     whether or not the sites have been previously
     licensed...........................................
15. Import and Export licenses..........................         \8\ N/A
16. Reciprocity.........................................         \8\ N/A
17. Master materials licenses of broad scope issued to           370,000
 Government agencies....................................
18. Department of Energy:
    A. Certificates of Compliance.......................  \10\ 1,321,000
    B. Uranium Mill Tailings Radiation Control Act              736,000
     (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 before October 1, 2006, and permanently ceased
  licensed activities entirely by September 30, 2006. 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 Categies 1C and
  1D for sealed sources authorized in the license.

[[Page 7377]]

 
\2\ Payment of the prescribed annual fee does not automatically renew
  the license, certificate, registration, or approval for which the fee
  is paid. Renewal applications must be filed in accordance with the
  requirements of parts 30, 40, 70, 71, 72, or 76 of this chapter.
\3\ Each fiscal year, fees for these materials licenses will be
  calculated and assessed in accordance with Sec.   171.13 and will be
  published in the Federal Register for notice and comment.
\4\ A Class I license includes mill licenses issued for the extraction
  of uranium from uranium ore. A Class II license includes solution
  mining licenses (in-situ and heap leach) issued for the extraction of
  uranium from uranium ores including research and development licenses.
  An ``other'' license includes licenses for extraction of metals, heavy
  metals, and rare earths.
\5\ There are no existing NRC licenses in these fee categories. If NRC
  issues a license for these categories, the Commission will consider
  establishing an annual fee for this type of license.
\6\ Standardized spent fuel facilities, 10 CFR parts 71 and 72
  Certificates of Compliance and related Quality Assurance program
  approvals, 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.

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


Sec.  171.19  Payment.

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

    Dated at Rockville, Maryland, this 31st day of January, 2006.

    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--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 based on 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) (Pub. L. 101-508), 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 (Pub. L. 106-377) 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 FY 2006 Energy 
and Water Development Appropriations Act (Pub. L. 109-103) extended 
this 90 percent fee recovery requirement through FY 2006. As a 
result, the NRC is required to recover approximately 90 percent of 
its FY 2006 budget authority, less the amounts appropriated from the 
Nuclear Waste Fund (NWF) and for Waste incidental to Reprocessing 
(WIR) activities, through fees. The total amount NRC is required to 
recover in fees for FY 2006 is approximately $624.0 million.
    OBRA-90 requires that the schedule of charges established by 
rulemaking 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.
    The Commission is proposing to rebaseline its part 171 annual 
fees in FY 2006. Rebaselining fees would result in increased annual 
fees for all licensees, with the exception of certain fuel 
facilities.
    The Congressional Review Act of 1996 is intended to reduce 
regulatory burdens imposed by Federal agencies on small businesses, 
nonprofit organizations, and governmental jurisdictions. This Act 
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. The Congressional Review Act also requires that an agency 
prepare a guide to assist small entities in complying with each rule 
for which a final RFA is prepared. This RFA and the small entity 
compliance guide (Attachment 1) have been prepared for the FY 2006 
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

[[Page 7378]]

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. In FY 
2005, about 26 percent of these licensees (approximately 1,200 
licensees) requested small entity certification.
    The commenters on previous fee rulemakings consistently 
indicated that the following results would occur if the proposed 
annual fees were not modified:
    1. Large firms would gain an unfair competitive advantage over 
small entities. Commenters noted that small and very small companies 
(``Mom and Pop'' operations) would find it more difficult to absorb 
the annual fee than a large corporation or a high-volume type of 
operation. In competitive markets, such as soil 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.
    Over 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 stated in the RFA 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 Chief Financial Officer's Act. Accordingly, the NRC examined 
the small entity fees again in FY 2003 (68 FR 36714; June 18, 2003), 
and determined that a change was not warranted to the small entity 
fees established in FY 2003.
    The NRC again re-examined the small entity fees for FY 2005, and 
did not believe that a change to the small entity fees was 
warranted. 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 from FY 2000 to FY 2005, on average, for 
those categories of materials licensees that contain a number of 
small entities, 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 retained the $2,300 small entity annual fee 
and the $500 lower

[[Page 7379]]

tier small entity annual fee for FY 2005, and is not proposing 
changes to these fees in FY 2006. The NRC plans to re-examine the 
small entity fees again in FY 2007.

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 90 percent of the NRC budget and the 
requirement to consider means of reducing the impact of the fee on 
small entities. Based on its regulatory flexibility analysis, the 
NRC concludes that a maximum annual fee of $2,300 for small entities 
and a lower-tier small entity annual fee of $500 for small 
businesses and not-for-profit organizations with gross annual 
receipts of less than $350,000, small governmental jurisdictions 
with a population of less than 20,000, small manufacturing entities 
that have less than 35 employees, and educational institutions that 
are not State or publicly supported and have less than 35 employees 
reduces the impact on small entities. At the same time, these 
reduced annual fees are consistent with the objectives of OBRA-90. 
Thus, the fees for small entities maintain a balance between the 
objectives of OBRA-90 and the RFA. Therefore, the analysis and 
conclusions previously established remain valid for FY 2006.

Attachment 1 to Appendix A--U.S. Nuclear Regulatory Commission Small 
Entity Compliance Guide; Fiscal Year 2006

Contents

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

Introduction

    The Congressional Review Act of 1996 (CRA) 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 the CRA. Therefore, 
in compliance with the law, this guide has been prepared to assist 
NRC materials licensees in complying with the FY 2006 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 2006 annual fees assessed under 10 CFR part 171. The NRC 
has established two tiers of annual fees for those materials 
licensees who qualify as small entities under the NRC's size 
standards.
    Licensees who meet the NRC's size standards for a small entity 
(listed in 10 CFR Part 2.810) 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 Website 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 Website, 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 Team, at 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

    For purposes of compliance with its regulations (10 CFR 2.810), 
the NRC has defined a small entity as follows:
    (1) Small business--a for-profit concern that provides a 
service, or a concern that is 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 of 500 or fewer employees based on employment during each 
pay period for the preceding 12 calendar months;
    (3) Small organizations--a not-for-profit organization that 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, the following guidelines are provided, 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 fees 
for licensees that qualify as a small entity 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
------------------------------------------------------------------------

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. Enter the license number and invoice number exactly as they 
appear on the annual fee invoice.
    b. Enter the Standard Industrial Classification (SIC) or North 
American Industry Classification System (NAICS) if known.
    c. Enter the licensee's name and address 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 must be submitted to the 
respective licensing staff in the NRC's 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:
    (i) A licensee who is a subsidiary of a large entity does not 
qualify as a small entity.
    (ii) 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

[[Page 7380]]

segment of the organization that uses licensed material.
    (iii) 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.
    (iv) 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 licensees qualify for reduced fees as small 
entities. Licensees who qualify as small entities and file NRC Form 
526, which certifies eligibility for small entity fees, may pay the 
reduced fee, which is either $2,300 or $500 for a full year, 
depending on the size of the entity, for each fee category shown on 
the invoice. Licensees granted a license during the first 6 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 6 months of the fiscal year, pay only 50 
percent of the annual fee for that year. Such invoices state that 
the ``amount billed represents 50% proration.'' This means that 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 $1,150 or $250 for each fee 
category billed (instead of the full small entity annual fee of 
$2,300 or $500).
    Licensees must file a new small entity form (NRC Form 526) 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 licensees 
must complete and return form 526 for the fee to be reduced to the 
small entity fee amount. LICENSEES WILL NOT RECEIVE 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 Team at the address indicated on the invoice.
    If you have questions regarding the NRC's annual fees, please 
contact 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 20555-0001, 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. 06-1163 Filed 2-9-06; 8:45 am]
BILLING CODE 7590-01-P